Gujarat Fluorochemicals Limited

CONTENT

Board of Directors ................................................................................................................................................................. 02 Notice ..................................................................................................................................................................................... 03 Directors’ Report ................................................................................................................................................................... 06 Corporate Governance Report ............................................................................................................................................. 15 Auditors’ Report .................................................................................................................................................................... 23 Balance Sheet ........................................................................................................................................................................ 26 Profit and Loss Account ........................................................................................................................................................ 27 Cash Flow Statement ............................................................................................................................................................ 28 Schedules forming part of the Balance Sheet and Profit and Loss Account ..................................................................... 29 Notes forming part of the Accounts .................................................................................................................................... 38 Inox Leisure Limited Annual Accounts 2009-10 .................................................................................................................. 52 Inox Infrastructure Pvt. Ltd. Annual Accounts 2009-10 ..................................................................................................... 94 Inox Motion Pictures Ltd. Annual Accounts 2009-10 ........................................................................................................ 109 Inox Wind Ltd. Annual Accounts 2009-10 .......................................................................................................................... 124 Gujarat Fluorochemicals Americas LLC, USA. Annual Accounts 2009-10 ........................................................................ 144 Consolidated Accounts ........................................................................................................................................................ 156

annual report 2009-10

1

Lohia Dr. Audit Committee Shri D. GIDC Dahej Industrial Estate. Maharashtra State Village Sadiya & Osiya. District Panchmahal. Tel.P.State Dahej Project Plot No. ICICI Bank United Bank of India Oriental Bank of Commerce UCO Bank Registered Office S/No. Kindly send all your transfer deeds together with Share Certificates for transfer of Shares to our Registrar and Share Transfer Agents at the following address : Link Intime India Pvt. 26&27 Ranjitnagar 389 380 Taluka Ghoghamba Dist. District Bharuch. Ranjitnagar 389 380 Taluka Ghoghamba.30 a. Ranjitnagar 389 380. 26 & 27. 2nd Floor.6198111 PLANT LOCATION Ranjitnagar Project Survey No. Rajasthan State 2 annual report 2009-10 . Dist. Jain Shri S. 26&27. Jain Shri Shailendra Swarup 2. Gujarat. Rama Iyer Shri Deepak Asher Shri S.K. Jain Shri Shailendra Swarup Shri V. at Survey No.Gujarat Fluorochemicals Limited GUJARAT FLUOROCHEMICALS LIMITED TWENTY-THIRD ANNUAL GENERAL MEETING Saturday. 16/3.P. Bedi Shri O. Panchgini.V. Patankar & Associates Chartered Accountants Bankers Canara Bank Bank of Maharashtra ABN Amro Bank N. Desai Auditors M/s. Kindly notify change of your address and write only to the Registrar and Share Transfer Agents in respect of any matter connected with your Shares.S.P. Panchmahal Gujarat BOARD OF DIRECTORS Shri D.K. Ltd.390 015 3.m. Old Padra Road. Taluka Ghoghama. S. Sachdeva Shri J. Jain Chairman Director Director Director Managing Director Whole-Time Director Whole-Time Director Director Director Director and Group Head Corporate Finance Director Request to Shareholders 1. 0265 . Vadodara 390 007. Shareholders are requested to bring their copy of the Annual Report alongwith them at the Annual General Meeting as copies of the Report will not be distributed at the Meeting.: 02678-248 153 Corporate Office ABS Towers.State Wind Farm Project Village Gudhe. Manisha Society Vadodara . 308. 16/3. 12A. Gujarat . Panchmahal. Mittal Shri Pavan Jain Shri Vivek Jain Shri D. Jaldhara Complex Opp. Taluka Vagra.K.P.V. 2010 at 11. Gujarat. Gujarat . the 10th July. Company Secretary Shri B. 1st Floor. 16/3.

16/3. 2010. if any. furnished Company owned or leased accommodation. of the Companies Act. the following resolution as an Ordinary Resolution : “RESOLVED THAT pursuant to the provisions of Sections 198. to pass. thought fit. the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of Sections 198. the 10th July. Gratuity payable in addition to the above remuneration at the rate of half month’s salary for each completed year of service. To appoint Auditors to hold office from the conclusion of this Meeting until the conclusion of the next Annual General Meeting and to fix their remuneration. of the Companies Act. at 11:30 am. The aforesaid remuneration is to be bifurcated by way of salary. to pass. if. with or without modification. 1956. 4. telephone facility. “RESOLVED FURTHER THAT the Board be and is hereby authorized to take all such steps as may be necessary. with or without modification. 26 & 27. 1961. SPECIAL BUSINESS 6. Remuneration: Remuneration of upto Rs 35 lakhs per annum. 2010. 3. However. District Panchmahals. To receive. 309 and all other applicable provisions. on Saturday. if. To appoint a Director in place of Dr S Rama Iyer who retires by rotation and being eligible offers himself for reappointment. performance pay and perquisites as per the rules and regulations of the Company for the time being in force and as determined by the Managing Director of the Company. To note payment of interim dividends and declare final dividend for the year ended 31st March. 269. 1956 including amendment thereto or re-enactment thereof (“Act”) read with Schedule annual report 2009-10 3 . Shri Dinesh Kumar Sachdeva be re-appointed. with the authority to the Board of Directors / Managing Director to grant increments within the range stated below: 1. 2.Gujarat Fluorochemicals Limited GUJARAT FLUOROCHEMICALS LIMITED NOTICE NOTICE is hereby given to the Members of Gujarat Fluorochemicals Limited that the Twenty-Third Annual General Meeting of the Company will be held at the Registered Office of the Company at S/No. if any. as a Whole-time Director of the Company for a further period of one year commencing from 29th November. to transact the following business: ORDINARY BUSINESS 1. Taluka Ghoghamba. 2010. consider and adopt the Profit and Loss Account for the year ended 31st March. Ranjitnagar 389 380. 269.” 7. the overall remuneration to Shri Dinesh Kumar Sachdeva shall not exceed the limits prescribed under Sections 198 and 309 of the Companies Act. In addition to remuneration within the above range. 5. proper and expedient to give effect to this resolution. All the perquisites and benefits are to be evaluated as per the Income Tax Rules. Gujarat. and other perquisites including medical expenses reimbursement and leave travel concession as per the rules of the Company. To consider and. Use of Car and telephone for the Company’s business will not be considered as perquisites. thought fit. Leave encashment payable in addition to the aforesaid remuneration as per the rules of the Company. the report of the Auditors thereon and the report of the Board of Directors for the said year. 1956 including amendment thereto or re-enactment thereof (“Act”) read with Schedule XIII to Act. 3. allowances. 2. Shri Dinesh Kumar Sachdeva would also be entitled to the Company car with driver. 1956 read with Schedule XIII of the Companies Act. To consider and. To appoint a Director in place of Shri OP Lohia who retires by rotation and being eligible offers himself for reappointment. the Balance Sheet as at that date. 309 and all other applicable provisions. 2010 on such terms and conditions including remuneration as set out below.

District Panchmahal. Ranjitnagar 389 380 Taluka Ghoghamba. 1956 read with Schedule XIII of the Companies Act. The Explanatory Statement pursuant to Section 173(2) of the Companies Act. To consider and. Gujarat Note : a) A Member entitled to attend the Meeting and vote thereat is entitled to appoint a proxy to attend and vote instead of himself. proper and expedient to give effect to this resolution. insurance for self. furnished Company owned or leased accommodation. of an amount equal to one percent of the net profits of the Company to be computed in accordance with the provisions of sub-section (1) of Section 198 of the said Act. Duly executed proxies must be registered with the Company not later than forty-eight hours before the scheduled time of the Meeting. the following resolution as a Special Resolution: “RESOLVED THAT pursuant to the provisions of sub-section (4) of the Section 309 and other applicable provisions of the Companies Act. to pass. All the perquisites and benefits are to be evaluated as per the Income Tax Rules. The proxy need not be a Member.” By Order of the Board of Directors Noida 22nd May. thought fit. 1956 in respect of the Special Business as set out above is annexed hereto. However. allowances. 1956 “RESOLVED FURTHER THAT the Board be and is hereby authorized to take all such steps as may be necessary. 3. 2010 (both days inclusive). 2010 to 10th July. telephone facility. Chairman of the Company be paid commission for a period of five financial years commencing from the financial year 2009-10. if. and other perquisites including medical expenses reimbursement and leave travel concession as per the rules of the Company. Use of Car and telephone for the Company’s business will not be considered as perquisites. performance pay and perquisites as per the rules and regulations of the Company for the time being in force and as determined by the Managing Director of the Company. b) c) 4 annual report 2009-10 .” “RESOLVED FURTHER THAT the Board be and is hereby authorized to take all such steps as may be necessary. Shri JS Bedi be re-appointed as Whole-time Director of the Company for a further period of one year commencing from 1st December. the overall remuneration to Shri JS Bedi shall not exceed the limits prescribed under Sections 198 and 309 of the Companies Act. proper and expedient to give effect to this resolution. Remuneration: Remuneration of upto Rs 40 lakhs per annum.” 8. Leave encashment payable in addition to the aforesaid remuneration as per the rules of the Company. with the authority to the Board of Directors / Managing Director to grant increments within the range stated below: 1. Gratuity payable in addition to the above remuneration at the rate of half month’s salary for each completed year of service. The Register of Members and the Share Transfer Books of the Company will be closed from 05th July. The aforesaid remuneration is to be bifurcated by way of salary. with or without modification. In addition to remuneration within the above range. 1961. 26 & 27. 2.2010 on such terms and conditions including remuneration as set out below. 16/3. 1956 (hereinafter referred to as the “Act”).Gujarat Fluorochemicals Limited XIII to Act. Mr JS Bedi would also be entitled to the Company car with driver. 2010 DK JAIN Chairman Registered Office : Survey No. Shri DK Jain.

Jaldhara Complex. Vasna Road VADODARA 390 015 ANNEXURE TO THE NOTICE Explanatory Statement pursuant to Section 173(2) of the Companies Act. 26 & 27. Opp Manisha Society. The Directors commend that the proposed Resolution be approved. Item No. desirable to continue to avail his services for future growth and better prospects of the Company and pay remuneration to him as is permissible under Section 309 (4) of the Companies Act. on the terms as contained in the Resolution. being relatives of Shri DK Jain. It is desirable that the Company should continue to avail his services as a Whole-Time Director of the Company. 2009 to 30th November. Gujarat DK JAIN Chairman annual report 2009-10 5 . Chairman of the Company. on the terms as contained in the Resolution. By Order of the Board of Directors Noida 22nd May.Gujarat Fluorochemicals Limited d) Those Members who have not received interim dividend and / or final dividend for 2002-2003 and / or 20032004 and / or 2004-2005 and / or 2005-06 and / or 2006-2007 and / or 2007-08 and / or 2008-09 and / or 200910 declared and paid by the Company. First Floor. 2010. except Shri DK Jain himself. 2010. 8 Section 309(4) of the Companies Act. 7 At the Twenty-Second Annual General Meeting of the Company. 6 At the Twenty-Second General Meeting of the Company. to the extent of payment of commission to Shri DK Jain. has given valuable guidance to the Company on various aspects of general management. The Directors commend that the proposed Resolution be approved. Chairman of your Company. None of the Directors of the Company is concerned or interested in the proposed Resolution except Shri DK Sachdeva to the extent of his appointment as a Whole-Time Director of the Company. None of the Directors of the Company is concerned or interested in the proposed Resolution except Shri JS Bedi to the extent of his appointment as a Whole-Time Director of the Company. The Directors commend that the proposed resolution be approved. Item No. are requested to write to our Registrar & Share Transfer Agents at the following address : Link Intime India Private Limited. Ranjitnagar 389 380 Taluka Ghoghamba. the Members had appointed Shri DK Sachdeva as a WholeTime Director of the Company for a period from 29 th November. 2009 to 28th November. District Panchmahal. therefore. It is. and Shri PK Jain and Shri VK Jain. with the approval of the Shareholders in General Meeting. None of Directors of the Company are concerned or interested in the proposed Resolution. 1956 permits payment of commission to a director who is not in whole time employment of the Company. It is desirable that the Company should continue to avail his services as a Whole-Time Director of the Company. 1956 Items No. 308. the Members had appointed Shri JS Bedi as a WholeTime Director of the Company for a period from 1 st December. 1956. 16/3. 2010 Registered Office : Survey No. Shri DK Jain. corporate governance and business.

74 6799.75 653.17 57427.62 0 80.Gujarat Fluorochemicals Limited DIRECTORS’ REPORT To the Members of GUJARAT FLUOROCHEMICALS LIMITED Your Directors take pleasure in presenting to you their Twenty-Third Annual Report for the year ended 31st March.distributors.46 4999.00 1647.66 169.18 2008-2009 104452.20 34094. MANAGEMENT DISCUSSION AND ANALYSIS REPORT a) Industry structure and developments The Company makes HCFC22 – a product that is used as a refrigerant and as feedstock in the manufacture of PTFE.39 0. There are 4 major manufacturers of refrigerants in India.05 33406.50 52271.44 268.49 4718. Internationally.74 33584.33 47468.03 2.00 3844. who represent requirements for new equipment. 1.09 47440. 2010.19 33584. The Refrigerant Gas market in India comprises of two distinct customer categories .07 1559.55 5703.98 4803.00 2197.05 292. FINANCIAL RESULTS Following are the working results for the year 2009-2010: (Rs in lacs) 2009-2010 Turnover Gross Profit before Interest and Depreciation Less: Interest Profit before Depreciation Less: Depreciation and amortization for the year Less: Provision for diminution in value of investments Profit before Taxation Provision for Taxation Profit for the year Add: Taxation pertaining to earlier years Add: Profit brought forward from previous year 98634.96 13427. Around 80% of your company’s refrigerant production was being exported to around 75 countries across the globe. of which your company is the largest. and OEs.69 8.88 29372.42 169.34 34013.75 647.56 34094.97 52427.18 6 annual report 2009-10 .03 Appropriations Capital Redemption Reserve Proposed Dividend written back Transferred to General Reserve Interim dividend Proposed Dividend subject to approval of the shareholders Tax on Dividend Balance carried to Balance Sheet 0 0 28800.30 -4.84 40205. who cater to the replacement demand. the market is serviced 59.

and regulatory restrictions leading to inability to sell the power generated at viable tariffs. for more than 4 years now. Your Company is amongst the largest Carbon Credit generating projects in the world. The key threat to this business is the price volatility in the carbon markets. and the sale of Carbon Credits to European buyers has added a healthy revenue stream to your Company’s operating results and is expected to do so. and potentially beyond. will ensure a steady demand for the HCFC22 produced by the Company. On the Carbon Credit front. Opportunities and threats The Refrigerant Business of your Company is operating at near full capacity. These products add to the Company’s product portfolio. due to its vast marketing reach and increasing cost competitiveness. wind uncertainty. and there is a good opportunity of creating value by identifying viable sites. Chloromethane capacity 1. expects to be able to operate at near full capacity levels. The Wind Energy Business is quite nascent in the country. your Company continues its strong presence in the international markets. prices of Carbon Credits generated by your Company should remain firm. However. your Company’s competitive advantage has been enhanced with the stabilisation of the integration projects set up at Dahej. Your Company has set up a subsidiary. right upto 2012.500 tpa. Your Company already has around 65 MW of installed capacity in wind power generation. has been able to maintain a healthy growth rate over the past few years. Your Company is also in the process of acquiring land banks and setting up an operating team for this business. in pursuance of your Company’s business plans to set up and operate wind farms. and also operated a 28 MW gas based captive power plant and a 25 MW Coal based captive power plant. b) Segment-wise and product-wise performance In line with the requirements of the Accounting Standard on Segment Reporting (AS-17). Gujarat.000 tpa and Poly Tetra Fluoro Ethane (PTFE) to 12. There is still some uncertainty about the market post 2012. including the PTFE plant. “Inox Wind Limited” (IWL) which has set up manufacturing facilities for wind turbines at Una. and earns Carbon Credits. annual report 2009-10 7 . After fully stabilising its existing capacities and attaining acceptable levels of product quality and capacity utilisation. as also due to faster Montreal Protocol mandated phase-out schedules in developed countries. The outlook on the Chemical Complex at Dahej is quite positive. Gujarat and has commenced commercial production of nacelles and hubs for wind turbines at Una. a cost-effective equipment sourcing strategy and ability to raise capital efficiently. Chlorine. Your company has set up a chemical complex at Dahej. The key threats to this business are availability and cost of energy (being one of the key inputs) and your company’s ability to meet the stringent quality standards of the export markets. On the Carbon Credit Business. largely due to growth in PTFE demand. into the future. it is expected that with deeper emission reduction targets contemplated by Europe. and provide longevity to the Company’s HCFC22 production beyond the control provisions of the Montreal Protocol. Himachal Pradesh and Bawla. Industrial installations and utilities in Europe and Japan buy these Carbon Credits for compliance under the Kyoto Protocol and / or the European Union Emissions Trading Scheme. over which some clarity could evolve over the next year(s). the Company has disclosed performance of each segment in the Note No 22 of Notes to the Accounts of Annual Report of the Company. The key threat to the Refrigerant Gas Business continues to be pressures on margins due to competition from China. and your Company has implemented an effective price hedging strategy to mitigate this risk. the Company has decided to invest around Rs 500 crores in increasing its plant capacity of Caustic Soda to 170000 tpa. c) Outlook HCFC22 is expected to witness a growth of around 5% per annum globally.20. The commissioning and stabilisation of the chemical complex set up by the Company at Dahej. Your company. The key threat in this business is increasing costs due to supply constraints of components.Gujarat Fluorochemicals Limited predominantly by a network of distributors. and. District Bharuch. Any power generated in excess of captive requirements is sold in the market. Chloromethanes and Poly Tetra Fluoro Ethane (PTFE) at this facility. The Chemical Complex at Dahej has now stabilised and attained acceptable levels of capacity utilisation and product quality. with the stabilisation and increased production levels at the Dahej chemical complex. The Company has been successfully operating. with increasing volumes due to higher capacities and improved PTFE realizations due to better product quality. The Company manufactures Caustic Soda. a Clean Development Mechanism Project which affects Greenhouse Gas Emission Reductions by Thermal Oxidation of HFC23. improve its competitive advantage due to forward and backward integration. with corresponding increase in the capacity of its captive power plant.

RESPONSIBILITY STATEMENT Your Directors would like to confirm that I. and is expected to show an improvement in the coming years. for the year 31st March 2010 are annexed hereto. the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that 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 year. significant audit observations. Auditors’ Report and Directors’ Report and a Statement of your Company’s interest in Inox Leisure Limited. 8. 3. 1956. d) Internal control system and their adequacy The Company has an adequate internal control system commensurate with the size and nature of its business. Profit and Loss Account. Inox Infrastructure Private Limited. including number of people employed The company has around 900 employees on its rolls. the firming up of Carbon Credit prices. China for manufacture of 35000 TPA Anhydrous Hydrofulric Acid. 8 annual report 2009-10 . The internal audit is carried out by independent firms of Chartered Accountants.Your Directors now recommend a final dividend of Rs 1. AUDITORS’ REPORT The Auditors’ Report to the Shareholders does not contain any qualifications. The Company has entered into a joint venutre with Yeng Peng Chemical Company Limited. who interact with the Audit Committee on a regular basis. with respect to the scope of audit.Gujarat Fluorochemicals Limited As regards the Wind Energy Business. 2010. f) Material developments in human resources / industrial relations front. This should provide the impetus for to further improve the viability of this business.50 per equity share (150%) subject to approval of the shareholders. III. offer themselves for re-appointment. e) Discussion on financial performance with respect to operational performance The financial performance of your Company continues to remain strong. SUBSIDIARIES AND JOINT VENTURE The Balance Sheet. Inox Wind Limited. Your company continues to have cordial and harmonious relations with all its employees. a strategic raw material of the Company. if any. as required under Section 212 of the Companies Act. II.80 lacs. 5. Inox Motion Pictures Limited and Gujarat Fluorochemicals Americas LLC. 1956. The notes forming part of the accounts are self-explanatory and do not call for any further clarifications under Section 217(3) of the Companies Act.00 per equity share (100%) each. IV. During the year. with the higher production levels at the chemical complex at Dahej. and remedial action required. in the preparation of the Annual Accounts. 4. 7. 1. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. DIRECTORS Shri OP Lohia and Dr S Rama Iyer retire by rotation and being eligible. DIVIDEND Your Company had already paid two interim dividends of Rs. The total dividend payout (including dividend distribution tax) for the year will be Rs 4491. the applicable Accounting Standards have been followed. the Directors have prepared the Annual Accounts on a going concern basis. The company has an adequate internal audit system commensurate with its size and the nature of its business. Shri CP Jain who was appointed as an Additional Director on the Board had resigned with effect from 12th February. and the commencement of revenues from the Wind Energy business. and regulatory framework is evolving to encourage more investments in renewable energy projects. there continues to be a demand-supply gap for energy in general and renewable energy in particular. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act.

Any Shareholder interested in obtaining a copy of the said annexure may write to the Company Secretary at the Registered Office of the Company. 1988. SAFETY. retire and offer themselves for re-appointment. was placed before the Board. 15. if made. who are responsible for the finance function. 16. AUDITORS Members are requested to appoint Auditors for the current year and to fix. A declaration to this effect duly signed by the Managing Director is enclosed as a part of the Corporate Governance Report. health and environment have been of prime concern to the Company and necessary efforts were made in this direction in line with the safety. INSURANCE The Company’s property and assets have been adequately insured. During the year. 14. or authorise the Board to fix. Due notice has been received from them that their appointment. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Information pursuant to Section 217(1) (e) of the Companies Act. co-operation and guidance received. Your company has spent around Rs 106.Gujarat Fluorochemicals Limited 9. The Auditors. Your Directors place on record their deep sense of appreciation for the dedicated services rendered by the workforce of the Company. CORPORATE GOVERNANCE Pursuant to Clause 49 of the Listing Agreements with the Stock Exchanges. a Management Discussion and Analysis. SUSTAINABLE DEVELOPMENT ACTIVITIES The Company undertakes sustainable development work as part of its ongoing efforts to improve the quality of life of the people in the areas surrounding its plant. Health of employees is being regularly monitored and environment has been maintained as per statutory requirements. 1956. the Company has had its Corporate Social Responsibility initiatives certified by Ernst and Young. 1956 and the rules framed thereunder. 12. CONSERVATION OF ENERGY. will be in accordance with the limits specified in Section 224 (1B) of the Companies Act. their remuneration. HEALTH AND ENVIRONMENT Safety. PARTICULARS OF EMPLOYEES In accordance with the provisions of Section 217(2A) of the Companies Act. 1956. read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. The Company has achieved certification of ISO: 14001:2004 (Environment Management System) and ISO 18001:2007 (Occupational Health and Safety Management System) for its Ranjitnagar Unit. health and environment policy laid down by the Company. By Order of the Board of Directors Noida 22nd May. the names and other particulars are set out in the Annexure to the Directors’ Report. 11. the Directors’ Report is being sent to all the Shareholders of the Company excluding the aforesaid annexure. 2010 DK JAIN Chairman annual report 2009-10 9 . M/s. All the Board Members and Senior Management Personnel of the Company had affirmed compliance with the Code of Conduct for Board and Senior Management Personnel. The annexure is available for inspection at the Registered Office of the Company. 13. relating to the matters contained therein is given by way of an Annexure to this Report. Patankar & Associates. Corporate Governance Report and Auditors’ Certificate regarding compliance of conditions of Corporate Governance are made a part of the Annual Report. 10. a certificate from the Managing Director and Director and Group Head (Corporate Finance) of the Company. ACKNOWLEDGEMENT Your Directors express their gratitude to all other external agencies for the assistance. Diligent and sincere efforts in this direction have had a positive and lasting impact on the neighbouring community.92 lakhs in the last financial year on these initiatives. In compliance with the requirements of Clause 49(V). In terms of the provisions of Section 219(1) (b) (iv) of the Companies Act. 1956.

Water meters were installed at various locations for better monitoring of water consumption. 4. if any. Benefits of energy savings are continued to be obtained due to implementation of jacket hot water recovery scheme in the Gas Based Co-generation plant was further enhanced during the year by augmenting the utilization of the low grade heat for evaporating treated effluent. enabling capacity operation with reduced number of compressors. Replacement of 125 W HPMV lamps with 20 Watt CFL lamps at 55 numbers of plant lighting points. 1988 (A) CONSERVATION OF ENERGY Ranjitnagar Unit : (a) Energy conservation measures taken : 1. 4. 5. The net Energy savings on account of above measures was 24000 kWH per annum. Operations improvements as given hereunder are carried out in CMS plant resulting into reduction of power consumption from 507.32 lacs kWH per annum. Dahej Unit : (a) Energy conservation measures taken : 1. This resulted in a net reduction in power consumption by 1.59 KW/MT of CMS consumption: • Philosophy of thermal reactor operation was modified and stabilized which has reduced chances of failure of thermal reactor RD and hence. 2. Energy Audit of all the plant units was conducted and relevant suggestions were implemented resulting into substantial power saving in each plant operations.Gujarat Fluorochemicals Limited ANNEXURE To The Directors’ Report Information as required under Section 217(1) (e) read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. Water level switches were installed in all the water tanks to avoid water flow. being implemented for reduction of consumption of energy : 1. This increased the refrigeration output per compressor. street and office illumination: • • • Installation of timers for street lights. 3. Additional investments and proposals. Replacement of ordinary tube lights of 40 Watts with Energy Efficient Fluorescent tube light 14/28 Watt. 2. Condensate recovery increased from about 68 m3 / day to 75-80 m3 / day by connecting remaining steam traps to condensate recovery line. AHF plant Refrigeration Compressor drive speed was increased by changing the drive pulley. This resulted in increase in the fuel utilization efficiency of Gas Based Co-generation plant from about 75% to 79% during the year. This will reduce fuel consumption in Boilers by 13200 MMBTU per annum. huge production loss. Energy intensive treated effluent evaporators will be stopped by diverting the treated effluent to an approved Common Effluent treatment plant (CETP) facility. Heat recovery from AHF Klin fuel gases is proposed to be augmented. The following measures were taken during the year for reducing power consumption for plant.2 lacs kWH per annum. 10 annual report 2009-10 . for use in Spar Dryer. Variable Frequency Drive was installed on B-104 Klin Blower resulting in savings of about 1. (b) The benefits of conversion of Cross Flow Cooling Towers into higher efficient counter flow configuration using structured packing continues to accrue at the rate of about 13. This will reduce fuel consumption in AHF plant by 1180 MMBTU per annum. Better utilization of recovered water in process and to reduce water consumption. thereby. 3.23 lacs kWH per annum.46 KW/MT to 467. At various locations 250 / 125 W HPMV lamp being replaced by 75 W metal halides lamps. 3. 2.

45 10. with lower carbon deposition.) 2 Coal 2392. Optimising lighting load at PTFE complex.. With new catalyst.85 5.00 1805. With modifications in process control loops. Hence. Phase Angel system to be implemented. (c) Impact of measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods .05 annual report 2009-10 11 .11 87.45 376. Installation of VAM & stoppage of Screw Chiller resulted in saving of kWH = 5800 / day. reduced energy consumption and its consequential effect on cost of production.53 2276. • • • • • • • • • • (b) Automation in level control of seal pot of DI water tank for Nitrogen blanketing resulted in saving of Nitrogen consumption by 770 M3 / day and hence. (d) Total energy consumption and energy consumption per unit of production as per Form A. lowers down time.89 11958.33 5.38 9217. 1. saving in kWH = 360/days.47 914. Chilled water VAM unit installed as replacement of Chilled water screw compressor in CA plant which resulted the saving of power @20 kWH / MT of caustic soda. Current Year Previous Year A 1 A Power and Fuel Consumption Electricity Purchased Units (in lacs) Total Amount (Rs in lacs) Rate/Unit (Rs. reduced N2 consumption and hence. energy saving. The impact of the measures indicated in (a) and (b) above are expected to be favourable i. SOP improvement for PTFE by stopping compressor for 2 hrs / day and using Nitrogen for back flushing of washing kettles strainers when Air jet mills of PTFE plants are not in operation has resulted into saving of kWH= 500 / day. operation of Hydro reaction in lower temperature was implemented to improve the lift of catalyst. being implemented for reduction of consumption of energy : 1.) B Own Generation Units (in lacs) Total Amount (Rs in lacs) Rate/Unit (Rs.Gujarat Fluorochemicals Limited • Operation of thermal reaction in lower temperature zone with lower temperature variations at each location. VFD commissioned for cooling tower fan at TFE Utility. After addition of 3rd electrolyser power saving of 270 units / MT of caustic soda due to operations at lower current density. Ammonia VAM unit installed to liquefy the Chorine in place of Freon compressors in CA plant which resulting in power saving @30 kWH / MT of caustic soda.19 6. if any. Reduced distillation stabilization time from 24 hrs to 12 hrs results in higher productivity. Actual saving impact will come on load fluctuation at power plant.e. This avoids carbon deposition in Reactor and quenching tower sparger choking and hence. Additional investments and proposals. which resulted into saving of 96 kWH / day. reduction in energy cost. power export limit increase 200 KW.

adaptation and innovation. 2. made towards technology absorption. in brief.82 0. adaptation and innovation : 1. Ranjitnagar Unit: Research and Development 1. i. in lacs) Average Rate (Rs. The Company has dedicated professionals working on ongoing development for improvement in process efficiency.89 27. The benefit of development work has resulted in improved throughput.14 562 74. ltrs.87 7061. 2.) B Consumption per unit of production Ranjitnagar (Fluorochemicals) Unit 1 2 3 4 5 Electricity KWH/MT Fuel Oil LTR/MT RLNG SCM/MT Coal Others Dahej (Chemicals) Unit 1 2 3 4 5 (B) (e) Electricity KWH/MT Fuel Oil LTR/MT RLNG SCM/MT Coal Qty MT/Coal Power unit lacs Others 2198 0.04 Previous Year 0 0 0 701. 3.87 26.90 9575. Benefits derived as a result of the above efforts. product quality. better capacity utilization and consistency in product and by-product quality and improved profitability. Specific areas in which R & D carried out by the Company : Nil Benefits derived as a result of the above R & D: Nil Future plan of action: Nil Technology absorption.82 63.53 14.) 4 RLNG SCM Quantity (scm) Total Amount (Rs. 12 annual report 2009-10 .Gujarat Fluorochemicals Limited Current Year Quantity (MT) Total amount (Rs in lacs) Average Rate (Rs) 3 Furnace Oil Quantity (k.47 229.074 3394.62 554.26 0 771 6 275 0 0 661. improved efficiency and better quality. i. Efforts.73 735 17 253 0 0 2357 1 571 0 0 TECHNOLOGY ABSORPTION efforts made in technology absorption as per Form B . in lacs) Average Rate (Rs.90 186.33 12.) Total Amount (Rs.80 83714. Energy and Emission control and enhancing process of safety.

Future plan of action i. 19 of Schedule 15 of Annual Accounts By Order of the Board of Directors Noida 22nd May. in brief. Indigenous spare parts were developed to have better availability of the plant and compatibility of operation. ii. 2. All operational units have implemented Planned Preventive Maintenance. ii. 3. Validation studies being carried out to improve operational efficiency and product performance. Specialty grade value added TFE product (Fire retardant) from it’s by product. Technology absorption. Dispersion grade and modified grade PTFE other than suspension grade polymer. 2. Technical support in terms of process optimization and performance of the final product was provided to all the PTFE processors as a part of the Company’s policy to grow along with the Company’s valued customers. i. ii. vi. Benefits derived as a result of the above R & D i. Oil cooler for Rectifier Transformer job under progress. v. (C) FOREIGN EXCHANGE EARNINGS AND OUTGO (f) Foreign exchange used Foreign exchange earned Refer to Note No. GRFC is working actively with the marketing team to increase awareness among domestic processors about the latest technological advancements in the field of fluoropolymer processing. Benefits derived as a result of the above efforts. Continuous efforts are being put to improve the efficiency of the operation and quality of products. PTFE conversion for compounding operation. New application areas were explored and continuous efforts being put to grow new business. Efforts. 2010 DK JAIN Chairman annual report 2009-10 13 . iv. vi. GFRC has contributed positively to grow domestic market of PTFE by setting up new applications in various fields including chemical. Proposed to develop value added by-products and enhancement of power generation. marine and power sector. v. iii. Development of new grade post treated PTFE special application. iv. ii. 18 of Schedule 15 of Annual Accounts Refer to Note No. i. made towards technology absorption. iii. TFE conversion to prepare other relevant Fluoropolymers prevailing in the market. Indian SS Tile heater developed and installed in place of Chinese Cast copper heater for Thermal Reactor. GFRC is equipped with latest testing facilities to understand and develop Fluoropolymer with improved properties in terms of purity of resin and with better mechanical properties to cater the global market.Gujarat Fluorochemicals Limited Dahej Unit: Research and Development 1. Improvements in operational efficiency. adaptation and innovation. Caustic and Methylene Chloride production. Specific areas in which R & D carried out by the Company i. adaptation and innovation : 1.

5 : 100. 2010 50. 3.06.00 % Inox Wind Limited 31st March.16 lacs) not applicable (Rs. 8.998% Gujarat Fluorochemicals America LLC. Name of the Company Financial year ended Shares held by the Holding Company in the Subsidiary Company Holding Company’s Interest The net aggregate of Profits (Losses) for the current and previous financial periods of the Subsidiary so far as it concerns the Members of the Holding Company : dealt with or provided for in the accounts of the Holding Company not dealt with or : provided for in the accounts of the Holding Company Rs 2605.00 % Inox Motion Pictures Limited 31st March.77 lacs) not applicable : Inox Leisure Limited 31st March.400 Equity Shares of Rs 10 each 99.99.092 Equity Shares of Rs 10 each 65.14 lacs) (Rs.00.76 lacs (Rs 2434.79 lacs) (Rs. 31st March. 2010 2. 2010 4.99.62% Inox Infrastructure Private Limited 31st March.08 lacs) Rs 24. : : 4.Gujarat Fluorochemicals Limited STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT. 123.78 lacs (Rs 104. 35.15.000 Equity Shares of Rs 10 each 100. 2010 14 annual report 2009-10 . 486. 1956 1.000 Equity Shares of Rs 10 each 100.33 lacs) (Rs. 2010 5.84 lacs 2.00.00% a) b) By Order of the Board of Directors Noida DK JAIN Chairman 22nd May. 2010 Rs 204.

50% of the Board shall consist of Independent Directors. Board of Directors The Board of Directors consists of eleven directors of which one is Managing Director and two are Whole-Time Directors. the Company has initiated significant measures for compliance with corporate governance. subsequent to his appointment. 2009. The Board of your Company consists of five Independent Directors and had appointed Shri CP Jain as an independent director during the year in order to comply with this requirement. 23rd January. With this belief. 2009. number of memberships held by Directors in the Board / Committees of various Companies: Name Category Attendance Particulars Board Meeting Shri DK Jain Shri VP Mittal Shri Shailendra Swarup Shri VK Jain Shri DK Sachdeva Shri PK Jain Shri OP Lohia Shri JS Bedi Dr S Rama Iyer Shri Deepak Asher Shri SP Jain Non-Independent Director IndependentDirector IndependentDirector Managing Director Whole-time Director Director Independent Director Whole-time Director Independent Director Non-Independent Director Independent Director 4 2 3 4 – 1 3 – 2 4 3 Last AGM No No No Yes Yes No No No No Yes No Number of other directorship / Committee Membership / Chairmanship Other Committee Committee Directorship Membership Chairmanship 11 6 9 18 – 15 5 – 8 5 1 2 6 5 7 – 7 2 – – 4 – 1 5 – – – 7 1 – – – – annual report 2009-10 15 . The following table gives details of Directors. the Board met four times on following dates. Shri CP Jain had resigned as a Director due to some unforeseen personal circumstances.Gujarat Fluorochemicals Limited CORPORATE GOVERNANCE REPORT In compliance with clause 49 of the Listing Agreement with Stock Exchanges. The Chairman of your Company is related to the Managing Director of the Company and as per provisions of the Listing Agreement. Gujarat Fluorochemicals Limited believes that the implementation of Corporate Governance principles generates public confidence in the corporate system. 29 th October. However. the Company is in process of appointing one more Independent Director in order to comply with the requirement of Independent Directors as per the Listing Agreement. the Company is pleased to submit this report on the matters mentioned in the said clause and the practices followed by the Company in this regard. During the year. 2009-2010. Hence. 2009. namely. 1. Company’s philosophy on Code of Governance Corporate Governance is the system by which companies are directed and controlled by the management in the best interest of the shareholders and others ensuing greater transparency and better and timely financial reporting. 2. at the Annual General Meeting. 22nd May. Corporate Governance therefore generates long term economic value for its shareholders. There are eight non-executive Directors. 31st July. 2010. details of attendance of Directors of Board Meetings.

2009 due to unavoidable circumstances. Project Management and construction Management of large projects both in India and abroad. Shri DK Sachdeva Shri DK Sachdeva is a Chemical Engineer from the India Institute of Technology. Dr S Rama Iyer Dr S Rama Iyer is a Chemical Engineer and has done his M Tech and Ph. Mumbai. The Chairman of the Audit Committee was unable to attend Annual General Meeting held on 29th June. and has over 40 years of experience in the technical field of various chemical / process plants. 3. D. He is recipient of Distinguished Alumnus Award from Indian Institute of Technology Mumbai in the year 1996. Shri JS Bedi Shri JS Bedi is a Chemical Engineer and has over 34 years of experience in the technical field of various chemical / process plants. He is involved with Process Technology. The Remuneration Committee being optional is not formed so far. Shri DK Sachdeva and Shri JS Bedi are to be re-appointed as Whole time Directors of the Company. Audit Committee The composition of Audit Committee and the details of the Meetings attended by the Directors are given below: Name Category 22nd May. He is commerce graduate from Kolkata University and after graduation. Design Engineering. 2009) Shri Shailendra Swarup Shri SP Jain (appointed as Member wef 22nd May.Gujarat Fluorochemicals Limited Directors seeking re-appointment / appointment Shri OP Lohia and Dr S Rama Iyer retire by rotation and. 2009 Shri DK Jain Shri VP Mittal (ceased to be a Member wef 22nd May. Kharagpur. Shri OP Lohia Shri OP Lohia is Chairman and Managing Director of Indo Rama Synthetics (India) Limited. The following are the details of remuneration drawn by Directors: 16 annual report 2009-10 . being eligible offers themselves for re-appointment. 4. The remuneration payable to the Managing Director. from Indian Institute of Technology. joined the family textile business which gave him management exposure in all disciplines of business management. Shri Lohia has been awarded Udyog Ratna award by Madhya Pradesh Government in 2005. Directors Remuneration The Board of Directors approves the remuneration of Directors before it is placed to the Shareholders for their approval. 2009) Director Chairman Yes Yes Attendance 31st July 2009 No 29th October 2009 Yes 23rd January 2010 Yes - Director Chairman Yes - Yes Yes Yes Yes Yes The Company Secretary acts as the Secretary to the Audit Committee. Achiever of the Year Award from Chemtech Foundation in the year 2003 and Business Leader of the Year Award from Chemtech Foundation in the year 2005. The terms of reference and powers of the Audit Committee are in accordance with the Clause 49 of the Listing Agreement. Whole-time Directors and commission to Chairman was approved by the Board of Directors in its Meeting.

46 1. salary. etc. Chairman.60 1.2009 to 28. bonuses. During the year the company has received 48 complaints which were replied / resolved to the satisfaction of the shareholders and no requests for transfer were pending for approval as on 31st March.12.65 Service Contract 32.53 35.e. Shri PK Jain. The Committee approves the share transfers and issue of duplicate share certificates. Director and Shri Vivek Jain.2010 Service Contract 29.2009 to 30.00 26.38 31.2012 Shri Vivek Jain Relative of Shri PK Jain Shri DK Jain and Director Particulars Rs.11.01.in Lacs 27.2010 Service Contracts.in Lacs : 440. pension. Shareholders and Investors Grievance Committee The Committee comprises of Shri DK Jain.34 01. The Committee also takes note of the dematerialization requests received and attended by the transfer agents. if any Managing All elements of Remuneration package i. Company Secretary is Compliance Officer of the Company. Severance Fee Service Contract 01.11.82 1. Shri Bhavin Desai.81 Rs.Gujarat Fluorochemicals Limited Remuneration paid during 2009-2010 Name of Director Relationship With other Directors Business Relationship with the Company.31 1761. 2010.12.40 Rs.37 1818.72 3.67 1. Particulars Salary &Allowances : Perquisites ContributionTo PF Commission Total Shri DK Sachdeva None Whole-Time Director Particulars Salary &Allowances : Perquisites ContributionTo PF Total Shri JS Bedi None Whole-Time Director : : : : : : : Rs.in Lacs 28. NoticePeriod. Managing Director. Total Rupees 40000 30000 15000 5000 15000 20000 30000 annual report 2009-10 17 .in Lacs Salary & Allowances: Perquisites ContributionTo PF Total : : : Shri DK Jain Relative of Shri PK Jain and Shri VK Jain Chairman Particulars Commission The following are the details of sitting fees paid to the Directors for attending the Board / Committee Meetings: Name of the Director Shri D K Jain Shri Shailendra Swarup Shri V P Mittal Shri PK Jain Dr S Rama Iyer Shri Deepak Asher Shri SP Jain 5.11. benefits.2008 to 31.

(b) Details of non-compliance by the Company. There were no instances of non-compliance of any matter related to capital markets during last three years.Gujarat Fluorochemicals Limited The following table gives details of Directors / attendance of Directors of Share transfer and Investor Grievance Committee Meeting: Name Shri DK Jain Shri Vivek Jain 6. their subsidiaries or relatives etc.2007 Time 11:30 am Category Director Managing Director Attendance 11 11 2007-2008 2008-2009 Note 20. 8. The Company has published its quarterly results in The Financial Express and Vadodara Samachar / Sandesh. Means of communication (a) (b) 9. At the forthcoming Annual General Meeting. penalties. The Management discussion and analysis form part of the Annual Report.00 pm The following special resolution was passed at the Annual General Meeting held on 29th September. 26&27 Ranjitnagar 389 380 18 annual report 2009-10 .09.06. Panchmahal. which is posted to the shareholders of the Company.1 Annual General Meeting : 10th July. Gujarat Same as above Same as above Date 29.09. Ranjitnagar – 389 380 Taluka GhoghambaDist. Directors of the Company. The following special resolution was passed at the Annual General Meeting held on 20th September. 2008: • Appointment of Shri Devansh Jain. 2009. The Register of contracts containing the transactions in which Directors are interested is placed before the Board for its approval. that may have potential conflict with interests of the Company at large. 2007: • Commencement of new business of giving on lease of property by the Company. to hold office or place of profit of the Company. No special resolution was passed at the last Annual General Meeting held on 29th June.2009 11:30 am 03. 7. No postal ballots were used for voting at these meetings. Transactions with the related parties are disclosed in the Note No 26 of Schedule 15 to the accounts in the Annual Report.16/3. Directors or management. there is no item on the agenda that needs approval by postal ballot. strictures imposed on the Company by the Stock Exchange or SEBI or any other authority on any matter related to capital markets during last three years. relative of Shri DK Jain and Shri VK Jain. General Body Meetings The last three Annual General Meetings of the Company were held as under: Year 2006-2007 Location Survey No. 2010 Survey No 16/3. General Shareholder information 9.2008 29. Disclosures (a) Disclosures on materially significant related party transactions There are no related party transactions made by the Company with its Promoters. 26 & 27.

24 1099. 2008 July.80 137.71 28.00 165.93 Nifty 71.41 Company in comparison to Nifty annual report 2009-10 19 .47 Company in comparison to Sensex Company’s share price performance in comparison to NIFTY based on share price on 31.25 166.10 127.00 National Stock Exchange (NSE) (in Rs.30 154.00 103.) Monthly low price April.5 Financial Year Book Closure Date Dividend Payment Date Listing of Equity Shares : : : : April to March 05th July. in lacs 843306 1251585 727654 920915 953005 2519869 1272965 1020246 2907756 704.80 141.20 166.72 634.14 4114.10 135.63 2374.30 1755216 1034339 2708.52 28. 2010 64.20 142.15 138.10 161. 9.80 173.55 166.4 9. 2010 March.46 1071.24 9.15 78.40 154.2 9. 2009 November.65 122.6 Stock code Mumbai Stock Exchange Demat ISIN No in NSDL & CDSL : : 500173 INE538A01037 9.Gujarat Fluorochemicals Limited 9.50 155.3 9.24 1534.8 Company’s share price performance in comparison to BSE Sensex based on share price on 31.96 1237.00 137.00 Quantity in Nos.83 1514.80 164. 2009 January.10 137. 2010 to 10 th July.90 160. 2009 June. Phiroze Jeejeebhoy Towers.70 999. 7. 2010 On or before 26th July.71 1404.00 143.00 139.50 122.85 173.25 144. Lyons Range.55 122.60 135.00 189.18 1936.10 Monthly high price 93.96 1390.15 76.40 165.40 189.14 3825. Mumbai 400 001 The Calcutta Stock Exchange Association Limited.00 146.04 837. 665446 881019 427298 508813 677929 1475150 829077 614780 1805313 4704179 977008 720939 Value in Rs.10 138. 2009 December.80 154.18 Sensex 53. in lacs 565.25 122.32 1034.95 2405.18 684.71 1255.55 130. 2010 February. Dalal Street.00 157.76 7516858 12127. 2009 October. 2008 August.99 Monthly low price 64. 2010 National Stock Exchange of India Limited.90 153.10 122. Mumbai. Mumbai 400 051 The Stock Exchange. Rs.7 Market Price data Bombay Stock Exchange (BSE) (in Rs. Kolkata 700 001 The Company’s application for voluntarily delisting of its equity shares with The Calcutta Stock Exchange Association Limited is pending with the stock exchange since 2004.46 7604.50 122.) Monthly high price 94.24 1487.2010 Period % change Co’s share price 2009-2010 82. 2009 September.00 108. Exchange Plaza.00 154. Bandra (E).03.03. Bandra – Kurla Complex.2010 Period % change Co’s share price 2009-2010 99.65 Quantity Value in Nos. 2009 May.

00 2.06 1.54 21.57 100.99 100.01 0. A 1 B 1 a b c d 2 a b c d e f g Category Shareholding of Promoters and Promoters’ Group Indian Promoters Sub-Total of A Non-Promoters.28 0. Insurance Companies Central / State Government Foreign Institutional Investors Sub-Total of B (1) Non-Institutions Bodies Corporate Individual Non-Resident Foreign companies Overseas Bodies Corporate Clearing Member Others Sub-Total B (2) Sub-Total of B Grand Total (A+B) 7100402 15145838 1009501 2000 3225763 306970 2028 26792502 32943285 109850000 6.65 0.94 0.94 1.58 0. subject to the documents being valid and complete in all respects.49 1.47 0.Gujarat Fluorochemicals Limited 9.31 1.82 0.79 0.69 1.46 0.11 Distribution of Shareholding as on 31 March.40 29.54 91. Vasna Road. 308 Jaldhara Complex.00 3. Vadodara 390 015 9. 2010 is as under : Sr.12 5. Opp Manisha Society.00 24. Holding Institutions Mutual Funds and UTI Banks.01 No of shares held % of total share holding 20 annual report 2009-10 . Financial Institutions.12 100.10 Share Transfer System Presently.17 0.9 Registrar and Transfer Agents Link Intime India Private Limited. No. the share transfers which are received in physical form are processed and the share certificates returned within a period of 30 days from the date of receipt.93 0. 9.46 13.00 2698443 22261 1000 3429079 6150783 2.59 76906715 76906715 70.00 Shareholding pattern of the Company as on 31 March.00 Number of shares 1432593 3362348 1283781 712611 511669 762298 1695446 100089254 109850000 Amount in Rs 1432593 3362348 1283781 712611 511669 762298 1695446 100089254 109850000 % to total 1.75 4. 2010 Shareholding of nominal value of Rs Upto 500 501 to 1000 1001 to 2000 2001 to 3000 3001 to 4000 4001 to 5000 5001 to 10000 10001 and above Total No of shareholders 11166 3596 743 261 136 156 217 258 16533 % to total 67.01 70.30 3.

All the Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct.15 Code of Conduct The Board of Directors of the Company had laid down a Code of Conduct for all the Board Members and Senior Management of the Company. Rajasthan State Village Osiya. 26 and 27. Vadodara 390 007 9.14 (i) Address for Investor Correspondence Link Intime India Private Limited. GIDC. Rajasthan State 9.13 Plant location Ranjitnagar Project Survey No. District Bharuch.02 0. 2010. annual report 2009-10 21 . Liquidity Company’s shares are traded on Bombay Stock Exchange and National Stock Exchange. PR 35/2000 dated 28th February. Jaldhara Complex. District Jodhpur. District Jaiselmer. Dahej Industrial Estate. Taluka Vagra. ABS Tower.Gujarat Fluorochemicals Limited Particulars of shareholding of Non-Executive Directors : Sr No 1 2 3 4 5 6 Name of Non-Executive Director Shri DK Jain Shri PK Jain Shri Shailendra Swarup Shri VP Mittal Dr S Rama Iyer Shri SP Jain No of shares held 10100 20100 10000 17000 30000 1000 % of total share holding 0. Taluka Ghoghamba. Relevant data of National Stock Exchange for the Financial Year 2009-2010 is given 9. Gujarat State Dahej Project Plot No 12-A. Ranjitnagar 389 380. 1st Floor.01 0. Trading in equity shares of the Company is permitted only in dematerialized form with effect from 28 th August.01 0.00 9. 308. Gujarat Fluorochemicals Limited.02 0. Vadodara 390 015 (ii) Any query on Annual Report Company Secretary.7 above. 2000. as per Notification issued by Securities and Exchange Board of India bearing No. 9.60 % of the shares issued by the Company have been dematerialized upto 31st March. Old Padra Road. Gujarat State Wind Farm Project Village Gudhe Panchgini. 16/3. 2000.01 0. District Panchmahal. Opp Manisha Society.12 Dematerialization of shares Approximately 33. Maharashtra State Village Sadiya. 2nd Floor.

49051 Registration No. 22nd May. Managing Director of Gujarat Fluorochemicals Limited. In our opinion and to the best of our information and according to the explanations given to us. We further state that such compliance is neither an assurance as to the future viability of the company nor the efficiency or effectiveness with which the management has conducted the affairs of the company. (a) The Chairman of the audit committee had not attended the Annual General Meeting of the Company for the reasons mentioned in paragraph 3 of the Corporate Governance report prepared by the Company. The compliance of conditions of corporate governance is the responsibility of the management. It is neither an audit nor an expression of opinion on the financial statements of the company. as stipulated in clause 49 of the Listing Agreement of the said company with stock exchanges. Our examination was limited to procedures and implementation thereof.16 CEO / CFO Certification The certificate in compliance with Clause 49(V) of the Listing Agreement was placed before the Board of Directors of the Comapny. DECLARATION I. (b) We state that no investor grievance is pending for a period exceeding one month against the company as per the records maintained by the Shareholders/Investors Grievance Committee. except as per the details given below. for the year ended on 31st March 2010. For and on behalf of Patankar & Associates Chartered Accountants Pune 22nd May. in all material respect. 2010.Gujarat Fluorochemicals Limited 9. 2010 Noida Vivek Jain Managing Director CERTIFICATE To the Members of Gujarat Fluorochemicals Limited We have examined the compliance of conditions of corporate governance by Gujarat Fluorochemicals Limited. 107628W 22 annual report 2009-10 . The Company is in process of appointing one more Independent Director in order to comply with the requirements Independent Directors. 2010 SS Agrawal Partner Membership No. Vivek Jain. we certify that the company has complied with the conditions of Corporate Governance as stipulated in the abovementioned Listing Agreement. adopted by the company for ensuring the compliance of the conditions of the Corporate Governance. declare that all the Board Members and Senior Management Personnel have affirmed compliance with the Code of Conduct for the Board and Senior Management Personnel for the year ended 31st March.

2010 and taken on record by the Board of Directors. 1956. as well as evaluating the overall financial statement presentation. In our opinion. and in the case of Cash Flow Statement. 1956. 4. on a test basis. in the case of the Profit and Loss Account. We believe that our audit provides a reasonable basis for our opinion. 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. as at 31st March. evidence supporting the amounts and disclosures in the financial statements. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. proper books of account as required by law have been kept by the company so far as appears from our examination of those books.Gujarat Fluorochemicals Limited AUDITOR’S REPORT TO THE MEMBERS OF GUJARAT FLUOROCHEMICALS LIMITED 1. give the information required by the Companies Act. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. (v) (vi) For Patankar & Associates Chartered Accountants Place: Pune. 2010. 1956. 2. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet. On the basis of written representations received from the directors. In our opinion and to the best of our information and according to the explanations given to us. As required by the Companies (Auditor’s Report) Order. 107628W annual report 2009-10 23 . 49051 Firm Registration No. 1956. 3. the said accounts. Dated: 22nd May. 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto.S. of the cash flows for the year ended on that date. we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. 2010 S. we report that: (i) (ii) We have obtained all the information and explanations. An audit includes examining. of the profit for the year ended on that date. Further to our comments in the Annexure referred to above. An audit also includes assessing the accounting principles used and significant estimates made by management. we report that none of the director is disqualified as on 31st March. which to the best of our knowledge and belief were necessary for the purposes of our audit. These financial statements are the responsibility of the Company’s management. the Balance Sheet.Agrawal Partner Membership No. (iii) The Balance Sheet. of the state of affairs of the Company as at 31st March. We conducted our audit in accordance with auditing standards generally accepted in India. Our responsibility is to express an opinion on these financial statements based on our audit. (iv) In our opinion. 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. read with the notes thereon. as on 31st March. We have audited the attached Balance Sheet of Gujarat Fluorochemicals Limited (the “Company”).

the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. In our opinion. 3. the rate of interest and other terms and conditions on which this loan is granted are not. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.Gujarat Fluorochemicals Limited ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR’S REPORT TO THE MEMBERS OF GUJARAT FLUOROCHEMICALS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH. from the parties covered in the register maintained under section 301 of the Companies Act. Excise Duty. the Company has an internal audit system commensurate with the size and nature of its business. 6. the prescribed accounts and records have been made and maintained. to the best of our knowledge and belief. we state as under: 1. The Company has granted loan to one company covered in the register maintained under section 301 of the Companies Act. Wealthtax. 7. 2003. 9. Income-tax. secured or unsecured. 2003 are not applicable to the Company. 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 Companies Act. Employee’s State Insurance. 12200 lacs. In our opinion. prejudicial to the interest of the Company. In our opinion. 13200 lacs and the year-end balance is Rs. the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records. 1956. The Company has not accepted any deposits from the public within the meaning of section 58A.1956 and the Rules framed there under and hence the provisions of clause 4(vi) of the Companies (Auditor’s Report) Order. 8. Fixed assets disposed of during the year were not substantial and therefore do not affect the going concern assumption. 4. Service-tax. No undisputed amounts payable in respect of Income-tax. is reasonable having regard to the size of the company and the nature of its assets. 24 annual report 2009-10 . Sales-tax. for a period of more than six months from the date they became payable. In our opinion. 1956 and exceeding value of rupees five lacs in respect of any party during the year have been made at a price which are. The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund. 58AA or any other relevant provisions of the Companies Act. Sales-tax. prima facie. 1956 have been so entered. No material discrepancies have been noticed on such verification. There is no overdue amount in respect of this loan. reasonable having regard to the prevailing market prices at the relevant time. Wealth-tax. The inventories were physically verified by the management at reasonable intervals during the year. The maximum amount involved during the year is Rs. In our opinion. In our opinion. The Company has not taken any loan. 2. as at the end of the year. Cess and other material statutory dues applicable to it. the transactions made in pursuance of contract or arrangement entered in the register maintained under section 301 of the Companies Act. prima facie. except for transactions for purchase of services where no comparison of prices could be made available as these services are of special nature. 1956 in respect of the Company’s products to which the said Rules are made applicable. During the course of our audit. Customs Duty. on the basis of information and explanations given to us and the books and records examined by us in the normal course of audit and such checks as we considered appropriate. the transactions that need to be entered into the register maintained under section 301 of the Companies Act. and are of the opinion that. prima facie. Investor Education & Protection Fund. in our opinion. there are generally adequate internal control systems commensurate with the size of the Company and nature of its business for purchase of inventory and fixed assets and for the sale of goods. 2010 In term of the Companies (Auditor’s Report) Order. In our opinion. no major weakness has been noticed in the internal control systems in respect of these areas. 1956. The company is regular in repayment of principal and payment of interest. Customs Duty. Excise Duty and Cess were in arrears. The Company has drawn out a regular programme of verification of fixed assets which. 5. Service-tax.

79 71. According to information and explanation given to us. on an overall examination of the balance sheet and the cash flow statement. Ahmedabad Commissioner of Income Tax (Appeals) TDS (VI). 11. Service-tax. 2003 are not applicable to the Company. In our opinion.30 13.Gujarat Fluorochemicals Limited Particulars of dues of Income-tax.08 2. 107628W annual report 2009-10 25 . 19.S. 21. 18. For Patankar & Associates Chartered Accountants 15.03. Commissioner (Appeals). Dated: 22nd May.83 Sales Tax Appellate Tribunal. 13.09. No fraud on or by the Company was noticed or reported during the course of our audit. There are no debentures issued and outstanding during the year and hence the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order. 1956. debentures and other securities in the course of its investment activity. The Company has not granted loans and advances on the basis of security by way of pledge of shares.53 9. proper records have been maintained of the transactions and contracts and timely entries have been made therein. bonds. funds raised on short term basis have. Vadodara. 17.2004 to 30.2007 Service tax interest & penalty for the period 01. 20. Kolkatta Sales Tax Appellate Tribunal. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. Gujarat Sales Tax Sales Tax for the year 1995-96 Sales Tax for the year 2001-02 Income Tax Service Tax Service Tax 10. Ahmedabad Deputy Commissioner (Appeals). the term loans availed during the year by the Company were applied for the purpose for which they were raised. Director General of Central Excise and Intelligence. TDS & Interest on TDS for 2007-08. The Company has invested in shares. in lacs) Forum where dispute is pending West Bengal Sales Tax Sales Tax for the period 1995-96 Sales Tax for the period1997-98 2. Kolkatta Asst. Wealth-tax. Excise Duty or Cess which have not been deposited on account of disputes are as under: Name of the Statute Nature of dues and the period to which the amount relates Amount (Rs. The Company has not incurred cash losses during the current year and in the immediately preceding financial year. the Company has not given any guarantee for loans taken by others from banks and financial institutions.35 1. WBST. 12.2006 The Company does not have accumulated losses. 16. The Company is not a chit fund or a nidhi/mutual benefit fund/society.Agrawal Partner Membership No. 2003 are not applicable to the Company. In our opinion. not been used during the year for long term investment. Therefore.2005 to 31. During the year the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. 2008-09 & 2009-10 Service tax interest and penalty for the period 10.83 1. Vadodara. Sales-tax. The Company has not raised any money by way of public issues during the year. prima facie. Place: Pune. 49051 Firm Registration No.06. Ahmedabad-Zonal Unit Commissioner Central Excise and Customs (Appeals). 14. debentures or other securities. 2010 S. In our opinion. These investments are held by the Company in its own name except to the extent of the exemption granted under section 49 of the Companies Act. mutual funds. 1956.04. The Company has not defaulted in repayment of dues to banks. Custom Duty.

29 7558.32 123082.85 3 4 28058.87 201618. DESAI Company Secretary SHAILENDRA SWARUP Director S.(ii) Total Notes forming part of Accounts As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.51 50572.13 18952.11 12176. V.Gujarat Fluorochemicals Limited Balance Sheet as at 31 st March. Loans and Advances (a) Inventories (b) Sundry Debtors (c) Cash and Bank Balances (d) Other Current Assets (e) Loans and Advances Sub-Total (i) (ii) Less : Current Liabilities and Provisions (a) Liabilities (b) Provisions Sub-Total (ii) Net Current Assets (i) .23 1 2 1098. P. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V.40 12963.44 9773. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D.08 788.15 53787.15 13877.97 216392.61 4961.53 119853.58 20349.25 296.57 68074.89 2510. S.60 152831.55 17917.50 121984.71 69410. JAIN Chairman B.12 106489.14 13991. in lacs) As at 31st March. 2010 Amount (Rs.04 92676.23 6 7 18786.55 201618.30 5992.86 59231.60 216392.49 9276.10 1098.64 101923.30 7371.86 9124.61 74867.82 As at 31st March.07 23314.42 18647.29 25729. 2010 Schedule Number I SOURCES OF FUNDS 1 Shareholders’ Funds (a) Capital (b) Reserves and Surplus 2 Loan Funds (a) Secured Loans (b) Unsecured Loans 3 Deferred Tax Liability (Net) Total II APPLICATION OF FUNDS 1 Fixed Assets (a) Gross Block (b) Less : Depreciation (c) Net Block (d) Capital work-in-progress (e) Advances on Capital Account 5 125136. in lacs) 26 annual report 2009-10 .10 37559.27 15539.14 55533.50 151732.13 2 3 (i) Investments Current Assets. K. K.74 49121.85 79712.32 4293. 2009 Amount (Rs.96 19221. JAIN Director 15 8 35049.99 21671.

in lacs) 100649.31 2669.17 (4483.74 6960.39 0.07 65492.02 107805.00 2197. V.00 0.19 29.50 7063.34 34013.05 0.28 EXPENDITURE 1 (Increase) / Decrease in Stocks 2 Materials Consumed and Purchase of Goods 3 Manufacturing and other expenses 4 Salaries and benefits 5 Provision for diminution in value of investments (Net) 6 Interest 7 Depreciation & Amortization Total Expenditure 8 9 Profit before Taxation Provision for Taxation Current tax MAT Credit Entitlement Deferred tax Fringe benefit tax 10 11 12 13 14 5 (910.88) 29372.19 12 13 annual report 2009-10 27 .05 33291.42 15 59.00 3844. S.91 12100.46 2014.Gross Less: Excise Duty 2 Sales . K.62 80.00 13427.67 5114.69 8. in lacs) 107121.00 0. K.Gujarat Fluorochemicals Limited Profit and Loss Account for the year ended 31 st March.16) 18480.78 105698.80 14 Balance carried to Balance Sheet Basic and diluted Earnings Per Share of Re 1 each Notes forming part of Accounts As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.23 47440.38 30123.18 268.98 169.17 3353.75 647.84 4803.09 4999.74 30.05 10 11 Profit after taxation for the year Add: Taxation pertaining to earlier years Balance Profit Profit brought forward from previous year Profit available for appropriation Less : Appropriations Capital Redemption Reserve Dividend on shares bought back General Reserve Interim Dividend Proposed Dividend Tax on Dividend 33406.00 1287.Net Other Income 9 2009-2010 Amount (Rs.14 104452.35 169.54 40205.75 653.96 98634.54 0.55 34094.00 (810. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V.00 28800.30 (4.00) 649.48 30599. 2010 Schedule Number INCOME 1 Sales .33 5703. JAIN Chairman B.34 40. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D.66 33415.44 60364. P.47 1559.00 6799.50) 19623. JAIN Director 292.97 4718.96 2008-2009 Amount (Rs.51 5256.42 33924.00 1647.19 33584.00 34013.62 0. DESAI Company Secretary SHAILENDRA SWARUP Director S.

25 (13577.86 (4843.40 20349.43) 24905.44 6.58 1559.74 (23643.23) 824.33 (667.11) 72523.82 78593.96 4718.84 (2615.16 (136964.76) (2494.27 (11474.85 (6070.73 2008-2009 47440.03) (6136.35 28936.29 49657.03 17367. S. JAIN Director 28 annual report 2009-10 .05) 0.31 (18774.80 117.74 5703. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D.85 434.90 (86127.33 9451.83) 20349.74 (13431.76) (7018.25 17558.97 7713.34) 3094. DESAI Company Secretary (12790.50 (58654. K. V.86) 91423.91) (4834. 2010 Amount (Rs.58) 125.47) (9204.08 SHAILENDRA SWARUP Director S.39 (10047.31) 5600.53) 4803.09 (2280.12) 36380.13) 19733.Gujarat Fluorochemicals Limited Cash Flow Statement for the year ended 31 st March.01) 4999. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V. P.07 0. 4 of Notes to Accounts) 40205. JAIN Chairman B.58 5.28) 16107.68 2790.84 (21276.96) 478.76 182.94 268.64 Net increase/(decrease) in cash and cash equivalent Cash and cash equivalents as at the beginning of the year Cash and cash equivalents as at the end of the year As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.43) 10.07) (31731.00 (27485.43 55154. K. in lacs) 2009-2010 A Cash flow from operating activities Net profit before tax Adjustments for : Depreciation and Amortisation Loss on assets sold/written off (Net) Provision for diminution in value of investments Income in respect of investing activities (Net) Interest Operative profit before working capital changes Adjustments for : Trade and other receivables Inventories Trade payables Cash generated from operations Income-tax paid (Net) Net cash from operating activities B Cash flow from investing activities Purchase of fixed assets (including change in capital wip and advances) Sale of fixed assets Purchase of investments Redemption/Sale of Investments Inter-corporate and other loans (Net) Interest and Dividend received (net of expenses) Adjustment for receivables on investment account Net cash used in investment activities C Cash flow from financing activities Proceeds from Long Term Loan (Net) Proceeds from Short Term Loan (Net) Interest paid Dividend paid (Including Tax on Dividend) Amount paid towards Buy Back of Shares Net cash used in financing activities D Capital receipts (Please refer to Note No.28) 112274.08 7558.61 1977.62 11134.32 629.

Previous year Rs.83 4. Previous year Rs.9473.64 11055.00 28800.44 0.2944.39) 29372. in lacs) 2000.15 13877. 5 ) From Banks Rupee Loan Term Loans (amount payable within one year Rs 9556.00 (6072.6246. Previous year Rs.310 shares are held by the Holding Co.00.73 11880.00 169.29 55533.82 Lacs) Total SCHEDULE 4 : UNSECURED LOANS From Banks Rupee Loan Term Loans (amount payable within one year Rs 4042.30 59.71 25729.37 Lacs.56 0. in lacs) SCHEDULE 1 : CAPITAL Authorized 20.00 292.Nil Lacs) Foreign Currency Loans Term Loans (amount payable within one year Rs.32 19551.2783.35 Lacs) Total As at 31st March.30 87400.000 Equity Shares of Re 1 each (.98.52 28058.39 110700.74 151732.15.24 Lacs.5930000 Shares bought back during the year 2008-09) Total SCHEDULE 2 : RESERVES AND SURPLUS Capital Reserves As per last Balance Sheet Additions during the year (Refer Note No.00 16086.00 59.62) 0.50 1098. Previous year Rs.00.44 Lacs.62 (4.88 Lacs.00 1098.00 1098.00 0.71 annual report 2009-10 29 .60 10426.30 0.19 121984.63 8506.40 Lacs) Foreign Currency Loans Term Loans (amount payable within one year Rs.00 59.Gujarat Fluorochemicals Limited Schedule Forming part of the Balance Sheet As at 31st March.1217.Out of above 5.43 16432.86 39100.00 0.50 11055.71 13877.Inox Leasing & Finance Limited .83 824.00 0.77.50 1098.00 59.00 139500.19 629. 4 ) Share Premium Account As per last Balance Sheet Less: Adjusted on Buyback of shares Capital Redemption Reserve As per last Balance Sheet Add : Transfer from Profit & Loss Account General Reserve As per last Balance Sheet Less: Adjusted on Buyback of shares Add: Transfer from Profit and Loss Account Profit and Loss Account Balance as per Annexed Account Total SCHEDULE 3 : SECURED LOANS (for securities please refer note no. 2009 Amount (Rs.15 9642. 2010 Amount (Rs.000 Equity Shares of Re 1 each Issued and Subscribed and Paid Up 10.50 2000.30 110700. .00 0.50.

43 415.80 111.39 11722.44 19.67 102.05 12791.54 4321.16 0.26 80.32 19.12 32490.33 67.52 483.22 5703.10 12963.Gujarat Fluorochemicals Limited 30 Schedule Forming part of the Balance Sheet SCHEDULE 5 – FIXED ASSETS Gross Block Particulars As at 1–Apr–09 Additions Deductions As at 31–Mar–10 As at 1–Apr–09 Depreciation/Amortization For the year Deductions As at 31–Mar–10 Amount (Rs.60 41469.85 6.49 23272.57 9783.84 384.30 690.32 9.59 14.12 12963.20 32490.09 79712.89 58.73 13.52 346.40 113.91 100.00 1664.19 92676.16 3856.13 1544.57 6.97 994.80 165.32 101.13 1474.68 1720.73 802.28 219.74 34.57 105778.77 .38 11107.25 3353.27 234.19 125136.96 710.45 582.44 37612.36 12168.14 1441.12 268.42 92676.23 130.84 8317.12 97.16 50272.00 141.12 409.79 349.42 30.58 0. in lacs) Net Block As at 31–Mar–10 As at 31–Mar–09 annual report 2009-10 (a) Tangible Assets Land .06 11751.81 3518.22 62023.71 804.83 50301.98 1061.80 71.47 68.65 30.80 429.13 83.07 4718.85 609.97 994.50 751.62 957.13 1646.21 172.00 68.85 394.69 21136.70 3936.31 89.33 131.86 194.Freehold Land .01 283.48 32.90 9789.55 204.36 10503.26 8634.79 309.35 1146.76 822.87 106489.13 1558.22 189.Leasehold Land Buildings and Roads Plant and Machinery Wind Mills Electrical Installations Manufacturing and other Equipments Furniture and Fixtures Vehicles Total (a) (b) Intangible Assets Technical Know How Software Total (b) Grand Total (a + b) Previous year 804.39 78890.80 3116.21 48.80 2136.93 68.43 18196.32 18647.99 30.55 594.44 91682.20 68.55 545.52 115.46 714.42 18363.35 18.99 124142.22 189.40 83097.57 41666.69 5591.

Equity Plan.84 8504.489 9.719.66 458.00 0. at cost.00 1000.897.000 29.00 0.392.00 2500.000 1.00 1202.00 2999.Gujarat Fluorochemicals Limited Schedule Forming part of the Balance Sheet Face Value Nos.747.90 1503.669 0 12.00 0.00 0.596 2.-Fnd HDFC Income Fund .337 0 3.00 0.Retail Plan .541 0 2.668.300 0 99.228 4.000 1500.400 0 5.748.00 0.919 221.919 562.28 2004.003 14.11 500.00 0.89 60.489 9. As at Nos.00 3500.500 239.53 2798.000.Growth Templton India Ultra short Bond Fund Super Institutional Plan-Daily Dividend Reliance Diversified Power Sector Fund.999.30 500.64 1048.00 1000.00 1000.65 1268. 31st March.000 15.806.00 500.60 1000.000 1000.64 1263.176 2.000.423.00 0.78 5.960 881.00 5.00 0.000 221.12 1109.645 6.210 1. in lacs) As at 31st March 2009 Amount (Rs.500 0 562. unless otherwise stated) A] UNQUOTED i) In Venture Capital Fund Indiareit Fund Scheme III Kshitij Venture Capital Fund ii) In Fully Paid-up Equity Shares i) In subsidiary companies Inox Infrastructure Private Limited (a company unde the same management) Inox Motion Pictures Limited Inox Wind Limited Gujarat Fluorochemicals Americas LLC ii) In Other companies Humsay i Global Services Limited Future Ventures India Limited The Ratnakar Bank Limited Xuzncheng Hengyuan Chemical Technology Co.00 0.00 2000.006.822.00 0.Megnum Global Fund.Growth Birla Sunlife Midcap Fund.000 150 100 100 1.00 560.25 1500.00 998.638.00 5005.000 3.Magnum Sector Funds Umbrella Contra-Dividend SBNPP Ultra ST Fund Super Institutional Daily Dividend SBNPP Select Midcap.928 0 4.768.112.464 0 6.949.672 0 10.999.500 15.00 621.647 2.621 12.155 5.00 500.94 204. As at Rs.00 10 10 100 1 2.00 3500.45 1048.00 517.00 0.046 7.470.743.000 50.362.Dividend Plan SBI.000 250.00 1000.00 1000.00 4500.25 1065.00 503.000 250.00 2500.281 2.505 9.09 563.07 3000.00 2000.00 1000.533.853.Pl.00 0.305 10. non-trade.500 2.45 1500.000.00 998.00 0.Retail Dividend Plan Reliance Equity Opptunities Fund Retail Plan-Dividend Plan Reliance Banking Fund-Institutional Plan-Dividend Plan Reliance Income Fund -Retails Plan-Growth Option Reliance Regular Savings Fund . 31st March.00 v) In Units of Mutual Funds Birla Sunlife Income Plus-Growth ICICI Prudential Institutional Income Plan-Growth IDFC Super Saver Income Fund-Investment Plan B-Growth IDFC Dynamic Bond Fund Plan B-Growth Kotak Bond-Regular-Growth Reliance Income Fund Retail Plan Growth Plan-Growth Reliance Medium Term Fund .00 0.00 2000.210 1048. Redeemable Preference Shares (fully paid-up) Humsay i Global Services Limited In Equity linked Debentures i) Citicorp Finance (India) Limited Redeemable NCD Issue Series 173 Redeemable NCD Issue Series 184 Redeemable NCD Issue Series 200 ii) Citifinancial Consumer Financial India 64 1.00 0.000.Plan A-Dividend-Reinvestment DSP Blackrock Small & Midcap Fund-Regular Plan-Dividend DSPBR Strategic Bond Fund-Institutional Plan-Daily Dividend HDFC Top 200 Fund-Dividend ICICI Prudential Infrstrcture Fund .00 10 10 10 50.00 3000.000.106.00 0.799 14.000 0 4.681 4.638.000.40 500.953.099.00 0. in lacs) 100000 1000 1.974.935.45 1048.00 1002.00 1000.00 500.00 0.00 2500.904 0 2.00 239.981.468 0 3. 2010 2009 SCHEDULE 6 : INVESTMENTS (Long term.25 1500.991 2.64 0.00 0.75 iii) In Cummulative.000.00 300.437.00 0.000 50.998 0 2. Ltd ( a Joint Venture) Kaleidoscope Entertainment Private Limited As at 31st March 2010 Amount (Rs. Non-convertible.017.Dividend Tata Floater Fund-Daily Dividend Templeton India Equity Income Fund-Dividend Reinvestment 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 2.00 0.997 0 0 0 0 0 0 0 0 0 0 0 0 1000.05 1302.75 4062.330 10.00 1000.078.24 0.Dividend ICICI Prudential Discovery Fund-Dividend JM Money Manager Fund Super Plus Plan-Daily Dividend Kotak Flexi Debt Scheme Institutional-Daily Dividend Birla Sunlife Short Term Fund-Inst.00 1002.748.381 2.Dividend SBI.00 0.45 iv) 1000000 1000000 1000000 100000 150 100 100 1.579.87 300.526 0 19.796.56 annual report 2009-10 31 .00 0.819.00 1000.00 60.00 0.00 4500.00 1500.392.00 1500.815 1.624.

934 0 2209.881 496.22 0.512 13. 2010 2009 As at 31st March 2010 Amount (Rs.695 0 365.00 1000.00 0.00 0.00 203.893 2.081 131.950 993.44 3960.308 166.000.495 245.90 1. Rs.981 0 347.49 729.138 191.00 500.39 0.00 1652.981 70.630 77.592 0 0 152. in lacs) As at 31st March 2009 Amount (Rs.Gujarat Fluorochemicals Limited Schedule Forming part of the Balance Sheet Nos.00 10.950 0 441.621.092 39.000 0 621.256 56.76 431.00 738.Growth Kotak Fmp 24M Series 1-Growth In Fully Paid-up Equity Shares i) In subsidiary company Inox Leisure Limited (a company under the same management) ii) In Other companies Advanta India Limited Balrampur Chini Mills Limited Borosil Glass Limited Brandhouse Retails Limited Bhilwara Technical Textile Limited (Received puruant to a scheme of arrangement) Dalmia Cement Bharat Limited Dewan Housing Finance Corporation Limited Deepak Fertilisers & Petrochemicals Limited TCS E-Serve Ltd.01 0.287 2.70 26185.76 118.21 362.34 ii) 10 40.01 500.000.00 2461.531 200 439.54 0.00 0.71 0.00 0.53 604.559 472.65 10 10 10 10 10 10 10 5.256 56.48 0.85 16398.51-15 Month Pl E-Gr Kotak Fmp 13M Series 6 .13 1560.832 600.00 3960.000 143.04 989.335.00 0.00 431.22 50572..01 500.22 24387.000 347.44 1176.073.00 4000.308 266.28 0.000 5.556 116.00 492.00 0.000 5.22 24387.081 131.000 5.04 38752.06 0.000.326 598.06 16.81 31.00 0.51 552.590 0 63.06 461.00 0.64 958.040 0 491.000 4620.31 32 annual report 2009-10 .000 5.44 10 1 10 10 1 2 10 10 10 2 10 10 10 10 10 10 1 10 10 10 10 2 2 10 5 10 10 5 5 10 10 2 48.46 1286.585 0 0 48.00 2613.615.531 200 439.00 2613.559 320.28 501.88 165.093 365.950 137.00 Total Equity shares Total Quoted Investments Less: Provision for diminution in value of Investment Net Quoted Investments Total Investments Market value of quoted investments 21025.000 0 993.590 270.073 321.893 2.13 25025.00 0.695 651.39 319.00 552.00 0.12 366.512 0 301..72 219.00 24387.06 663.000 63.01 0.00 500.00 366.19 2461.335.24 27473.20 16404.000.90 1.600.57 738.39 74867.88 264. EIH Limited GAIL India Limited Garware Wall Ropes Limited Gujarat NRE Coke Limited Housing Development & Infrastructure Limited HEG Limited Jindal Saw Limited K S Oil Limited Kesoram Textile Mills Limited (Received puruant to a scheme of arrangement) Mount Everest Mineral water Limited Navin Flourine Limited Orbit Corporation Limited OCL India Limited Praj Industries Limited Prime Focus Limited Reliance Communication Limited Reliance Petrolieum Limited RSWM Limited Shree Global Tradefin Limited Taneja Aerospace & Aviation Limited Tantia Construction Limited Trent Limited United Phosphorus Limited 52689.81 51402.91 1612.29 996.) UTI Treasury Advantage Fund-Institutional Plan-Daily Dividend 10 220.76 0.00 996.03 0.000.00 500.33 1287.000 10.781 441.00 500.000.000.63 Total Unquoted Investments Less: Provision for diminution in value of Investment Net Unquoted Investments B] i) QUOTED In Units of Mutual Funds DWS Fixed Term Fund-Sr 68-Reg Gr DWS Fixed Term Fund-Sr 69-Reg Gr Fortis Fixed Term Fund Series 16 HDFC Fmp 24M Feb10-Growth Sr Xii ICICI FMP Sr.00 0.000 0 0 0 0 0 0 0 500.80 14.000 5.881 0 600.91 0.630 77.00 0.30 0.556 116.50 0.000 156.00 4620.04 989.30 1601.592 4.93 963.00 500.48 0.93 963.14 1176. 31st March.69 20427.00 598.000 156. As at Face Value Nos.74 23464. As at 31st March. in lacs) SCHEDULE 6 : INVESTMENTS (Contd.00 729.21 362.559 621.

70 2003.68 3317833.42 6943536.00 2.99 4257.59 526.Institutional Plan (Growth) 5 Canara Robeco Treasury Advantage Fund .98 19875361.45 4480.Gujarat Fluorochemicals Limited Schedule Forming part of the Balance Sheet SCHEDULE 6 : INVESTMENTS (Contd.90 2053303.09 37536267.44 30064937.43 631.26 443017.54 558.68 2813934.28 30476222.Institutional Growth Option 24 ING Treasury Advantage Fund .57 2505.60 1500.77 14334588.41 8077448.Super Institutional .86 5650196.99 300. Daily Dividend 29 Principal Ultra Short Term Fund -Reg plan -Div Option-daily 30 Reliance Medium Term Fund.75 13314042.73 Details of purchase & redemption of mutual fund during FY 2009-10 1 Birla Sun Life Savings Fund-Insititutional Plan.22 23261657.40 1502.81 1992627.77 15919622.G.00 102807.35 200.77 9766982.82 21154.00 3300. Fund .Daily Div Reinvest 6 DSP BlackRock Floating Rate Fund .18 401423.00 1800.Dividend 39 Templeton Floating Rate Income Fund .12 850.Daily Dividend Option (Compulsory Reinvestment) 11 Fortis Money Plus Fund-Institutional Plan-Growth Option 12 Fortis Money Plus Fund-Institutional Plan-Weekly Dividend Option 13 HDFC Cash Management Fund Treasury Advantage .18 1502.Institutional Daily Dividend Option 23 ING Treasury Advantage Fund .41 5650.Institutional Weekly Dividend Option 25 Kotak Flexi Debt .54 9032267.09 15005777.00 4753.Growth Option 10 Fortis Money Plus Fund-Institutional Plan.54 150171.Cash Option 35 Tata Floater Fund Daily Dividend 36 Tata Floater Fund Growth 37 Tata Floater Fund Weekly Dividend 38 Tata Infrastructure Fund .Treasury Advantage Fund .Wholesale Plan Weekly Dividend Option 16 HSBC Ultra Short Term Bond Fund .95 34449232.30 3002531.Growth 34 SBI Magnum Insta Cash Fund .42 800.81 1669295.R.00 2006.FMP-Insti.39 23257840.86 2008.00 4916.Regular Plan .65 25124377.44 4250.26 8993452.08 35056190.Institutional Plan .Institutional Plan Growth 26 Kotak Flexi Debt .Weekly Dividend 43 UTI .00 1259.64 46134992.Super Institutional Plan .00 1751.82 40334188.00 1001.13 2208.Growth 9 Fidelity Ultra Short Term Debt Fund .18 20065912.23 12474223.) 25042889.Institutional Plan-Daily Dividend Reinvest 7 DSP BlackRock India T.03 30776778. Amount (Rs.Growth 42 Templeton India Ultra-short Bond Fund .73 2.17 250.98 1500.Super Institutional . Plus .88 7988261.96 42555747.00 200.Daily Dividend 40 Templeton India Ultra-short Bond Fund .Inst.Institutional .30 22086537.56 250.Institutional-Growth TOTAL OF MUTUAL FUNDS Details of purchase & sales of equity shares during FY 2009-10 1 BALRAMPUR CHINI MILLS LIMITED TOTAL OF EQUITY SHARES 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 annual report 2009-10 33 .Wholesale Plan Growth Option 15 HDFC Cash Management Fund Treasury Advantage .00 1002.46 5300.Super Institutional Plan .00 3506.Growth Plan Growth Option 32 Reliance Money Manager Fund-Institutional Plan-Weekly Dividend Option 33 Religare Ultra Short Term Fund .Growth 17 ICICI Prudential Flexible Income Plan Premium-Daily Dividend Plan 18 ICICI Prudential Flexible Income Plan Premium-Growth 19 ICICI Prudential Flexible Income Plan Premium-Weekly Dividend Plan 20 ICICI Prudential Infrastructure Fund-Dividend 21 IDFC-Money Manager Fund-Treasury Plan C-Daily Dividend 22 ING Treasury Advantage Fund .00 4701.E.Long Term .00 1500.00 4021.Institutional .Dividend 8 DSP BlackRock Money Manager Fund .Institutional Plan Weekly Dividend 27 Kotak Floater Long-Term-Daily Dividend 28 Principal Floating Rate Fund .Institutional Plan .Daily Dividend Plan 31 Reliance Medium Term Fund-Retail Plan .Wholesale Plan Daily Dividend Option 14 HDFC Cash Management Fund Treasury Advantage .21 9933036.54 2304.04 22962869.20 10 2044.I.Growth 41 Templeton India Ultra-short Bond Fund .78 20060144.79 4495591.71 1200.Daily Dividend 2 Birla Sun Life Savings Fund-Insititutional Plan.00 2518.) Face Value Purchase & Sold during the year Nos.14 3765.74 46614487.Weekly Dividend 3 Birla Sun Life Savings Fund-Institutional Growth 4 Birla Sun Life Short Term Fund.60 5500.00 3500.42 5261.

14.29 75.29 12176.34 9276.00 2236.21 218.78 By-products Material-in-process Raw Materials Carbon credits 2 1.00 9276.64 191.60 34 annual report 2009-10 .03 19221.05 8205.00 12176.15 0.00 11.00 0.64 4 Other Current Assets Interest accrued 296. in lacs) SCHEDULE 7 : CURRENT ASSETS.90 17708.11 As at 31st March.07 B 1 LOANS AND ADVANCES (Unsecured.58 4.44 6718. please refer to the accounting policies) Stores and Spares Packing Materials Finished Goods Manufactured Goods Traded Goods 3153.87 12100.15 0.44 (11.58 2905.36 7558.58 0.79 1720.46 2 Deposits 424.49 Sundry Debtors (Unsecured) Considered good Exceeding 6 months Others ((includes amount due from subsidiary companies Rs. 2010 Amount (Rs.15) Cash and Bank Balances Cash on Hand Bank Balances with Scheduled Banks (a) in Current Accounts (b) in Cash Credit Accounts (c) Fixed Deposits 5.44 Lacs (previous year Nil)) Considered Doubtful Exceeding 6 months Others 519.30 4015.41 1048.00 0.87 4116. 2009 Amount (Rs.95 8756.50 51. considered good.43 6516.81 1.31 6769.32 4.27 Less: Provision for Doubtful Debts 3 9287.42 610. 20. unless otherwise stated) Advances recoverable in cash or in kind or for value to be received ((includes amount due from subsidiary companies Rs. in lacs) 11.39 278.46 6896.25 20349.22 2327.73 99.Gujarat Fluorochemicals Limited Schedule Forming part of the Balance Sheet As at 31st March.31 1301.60 308.54 Lacs (previous year 8.91 18786.71 12176.08 788.14 Lacs)) 831. LOANS AND ADVANCES A 1 CURRENT ASSETS Inventories (for basis of valuation.98 6892.

85 1280.75 273.63 0..68 850.. 7 ) 157.00 18559.to others (current investments) 17125.98 205.93 165.86 260.51 5127.13 18952.69 144.86 Total 59231.41 Lacs (previous year Nil)) 8. LOANS AND ADVANCES (Contd.34 395.55 534.26 2510.32 12715.99 2 3 Trade Deposits Investor Education and Protection Fund shall be credited by the following amounts namely: Unclaimed dividends (Refer note no.74 4 5 6 Advances from Customers Other Liabilities Interest accrued but not due B PROVISIONS 1 2 3 4 For Fringe Benefit Tax ( Net of Payment) Proposed Dividend Tax on Proposed Dividend For Gratuity and Leave Encashment 7.00 18658. in lacs) 3 Inter-corporate Deposits Considered Good .61 11.43 20617.42 451.57 68074.00 1434. 864.20 810.93 91.) As at 31st March.52 35049.03 Considered Doubtful 99.75 653.00 SCHEDULE 8 : CURRENT LIABILITIES AND PROVISIONS A CURRENT LIABILITIES 1 Sundry Creditors dues to Micro and Small Enterprises others ((includes amount due to subsidiary companies Rs.10 3523.52 12792.59 5127.23 12723.95 13991.34 3252. in lacs) SCHEDULE 7 : CURRENT ASSETS.03 Less: Provision for Doubtful Inter-corporate deposits 99.50 1647.99 annual report 2009-10 35 .96 15539.Gujarat Fluorochemicals Limited Schedule Forming part of the Balance Sheet As at 31st March. 2009 Amount (Rs.89 106.67 581.20 144.38 12766.70 3844.51 5272.78 26. 2010 Amount (Rs.00 2294.10 4961.61 4 5 6 7 Share Application Money Balances in Excise .18 Total 37559.to subsidiary companies (long term investment) .03 1604.03 18559.69 1151.90 532.00 23314. Service Tax and VAT Accounts Income tax paid (Net of provisions) MAT Credit Entitlement 0.

34 431.12 148.61 6769.60 1806.50) Less : Closing Stock Finished Goods Material-in-process By-products Carbon Credits 6896.46 (910. 5.41) 2008-2009 Amount (Rs.56 lacs.59 - 261.41 99.00 0.33 0.91 Excise Duty on Stock of Finished Goods (Net) ( Increase) / Decrease In Stock SCHEDULE 11 : MATERIAL CONSUMED AND PURCHASE OF FINISHED GOODS Raw Materials consumed Packing Materials consumed Purchase of Finished Goods Total 14405. previous year Rs. in lacs) SCHEDULE 9 : OTHER INCOME Interest On long term investments (tax deducted at source of Rs 29.83 0.33 18480. previous year Rs.43 1.76 2. 28. 51.30 3523.61 51.52 19623.17 351.12 905.61 27.41 99. in lacs) 253. 26.91 9.67 535.87 965.51 2498. 199.78 3353.00 1060.37 lacs) From banks (tax deducted at source of Rs.60 738.On long term investments from subsidiary company from Others Profit on sale of Long Term investments (Net) Liabilities written back no longer required Provision for doubtful advance written back Foreign Exchange Fluctuation Gain (Net) Lease Rent Miscellaneous income Total SCHEDULE 10 : (INCREASE) / DECREASE IN STOCKS Opening Stock Finished Goods Material-in-process By-products Carbon Credits 0.00 727.79 218.78 1720.52 lacs.90 281.11 45. 47 lacs) On current investments (tax deducted at source of Rs.05 1.33 1060.92 7063.78 735.01 40.02 Dividend .00 339.37 285. previous year Rs.30 (88.39 249.03 8837.81 1048.04 lacs previous year Rs.03 7918.90 1627.00 40.08 227.05 1.48 15266.76 lacs) On Income-tax refunds Others (tax deducted at source of Rs.80 1048.19 0.60 54.38 36 annual report 2009-10 .25 4305.76) (4483.00 396.16) 7918.29 3184.03 3927.Gujarat Fluorochemicals Limited Schedule Forming part of the Profit and Loss Account 2009-2010 Amount (Rs.2.00 35.56 6769.65 lacs. 102.

22 79.44 0.24 62.30 1671.87 407.00 101.53 333.67 2008-2009 Amount (Rs.15 0.103.92 227.69 5256.51 64.09 4999.05 6.Gujarat Fluorochemicals Limited Schedule Forming part of the Profit and Loss Account 2009-2010 Amount (Rs. in lacs) SCHEDULE 12: MANUFACTURING AND OTHER EXPENSES Stores and Spare parts Consumed Power and Fuel Freight and Octroi Insurance Excise Duty.00 Lacs.62 119.42 290.99 106.94 5114.26 7173.74 10856.20 30599.66 30123.87 31.89 192.97 647.45 273.79 46.22 251.64 68.42 169.85 0.33 4841. in lacs) 1769.51 1842.88 158. Custom Duty and Sales Tax Production Labour Charges Processing Charges Factory Expenses Repairs to Buildings Machinery Others Directors’ Sitting Fees Commission to Chairman Rent Rates and Taxes Travelling and Conveyance Communication expenses Legal and Professional Fees and Expenses Lease Rentals and Hire Charges Discount Loss on assets sold/scrapped (Net) Bank Charges Foreign exchange fluctuation loss (Net) Provision for doubtful debts Bad debts and Remissions Less : Provision for Doubtful debts adjusted Expenditure on Sustainable Development Plan Commission Royalty Loss on Sale of Long Term Investments (Net) Miscellaneous Expenses Total 1953.13 276. Wages.47 0.66 4803.00 0.38 1463.94 174.93 293.34 148.63 77.57 218.26 1709.97 annual report 2009-10 37 .62 214.28 162.67 1172.24 33.80 84.96 203.80 69.14 0.52 Lacs) Other Interest Total 4904.43 1449.98 0.422.67 157.36 138.17 48.80 1439.72 1.63 60.25 56.44 157.00 11.00 1825.35 688. previous year Rs.43 155.55 440.28 110.18 4645.27 2019.63 0.94 222.47 106.52 1.58 110. Allowances and Benefits Contribution to Provident and other Funds Gratuity Staff Welfare Expenses Total SCHEDULE 14 : INTEREST Interest on fixed loans (Net of interest capitalised Rs.69 2227.19 17471.38 394.23 733.92 SCHEDULE 13: SALARIES AND BENEFITS Salaries.00 1.47 4858.

Fixed Assets costing Rs 5. Gross sales includes excise duty but are exclusive of sales tax. Retirement benefits in the form of Gratuity and Leave Encashment are recognized as an expense in the Profit and Loss Account at the present value of the amounts payable determined on the basis of actuarial valuation techniques. and is net of CENVAT & VAT Credit. comprising of lease premium and expenses on acquisition thereof. Other borrowing costs are charged to Profit and Loss Account. Revenue from Carbon Credits is recognised on delivery thereof or sale of rights therein. is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act. c) DEPRECIATION & AMORTIZATION i) On tangible fixed assets: Cost of Leasehold Land is amortised over the period of the lease. defective and unserviceable stocks are duly provided for. g) SALES The Company recognises sales when the significant risks and rewards of ownership of the goods have passed to the customers. Closing stock of finished goods and imported materials include excise duty and customs duty payable thereon. including any expenses attributable to bring the asset to its working condition for its intended use. Income from investments is accounted for on accrual basis except that no income is recognised in respect of doubtful investments. Other Fixed Assets are carried at cost less accumulated depreciation.Gujarat Fluorochemicals Limited SCHEDULE 15: NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2010 1. Provision for diminution is made to recognise the decline. on straight line method. Leasehold Land is carried at cost. Current Investments are carried at lower of cost and fair value. On intangible fixed assets: Cost of Technical Know-how is amortized equally over a period of ten years and cost of Software is amortized @ 16. 1956. Depreciation on other Fixed Assets. as reduced by accumulated amortisation. Actuarial gains and losses are recognized in the Profit and Loss Account. Obsolete. excluding Freehold Land. in the values of these investments. Company’s contributions towards provident and pension funds viz.000 or less are fully depreciated in the year of acquisition.a. h) EMPLOYEE BENEFITS Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account in the year in which the related service is rendered.21% p. using the projected unit credit method. Based on technical opinion Windmill is considered as a continuous process plant and depreciation is provided at the rate applicable thereto. 1956. 2006 and the relevant provisions of the Companies Act. SIGNIFICANT ACCOUNTING POLICIES a) BASIS OF ACCOUNTING The financial statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules. f) INVENTORIES Inventories are valued at lower of cost and net realisable value. Cost comprises of purchase price / cost of construction. Income on sale of electricity generated is recognised on the basis of actual units generated and transmitted to the purchaser and is net of unscheduled interchange charges paid. Defined Contribution Plan paid/payable during the year are charged to the Profit and Loss Account. e) INVESTMENTS Long Term Investments are carried at cost. i) BORROWING COSTS Borrowing costs that are directly attributable to the acquisition. b) FIXED ASSETS Freehold land is carried at cost. Cost is determined using Weighted Average Method and is inclusive of appropriate overheads. as the case may be. ii) d) IMPAIRMENT OF ASSETS Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company’s assets and impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. in terms of the contract with the respective buyer and is net of payment towards cancellation of contracts. wherever applicable. other than temporary. construction or production of a qualifying asset are capitalised as part of cost of such asset. 38 annual report 2009-10 .

District Bharuch. District Panchmahals. 824. At the Balance Sheet date. the actual amount to be transferred to the Investor Education and Protection Fund shall be determined on the due date. unless otherwise used.37 million). to make them comparable with those of the current year. wherever necessary. 629. for valuation of inventories. Working Capital Loans from HDFC Bank Limited and ABN Amro Bank N. Village Ranjitnagar. The Company has been advised that the compensation is a capital receipt and hence this amount is credited to Capital Reserve. 7. Gujarat. the difference between the forward rate and the exchange rate at the date of the transaction is recognised as income or expense over the life of such contract. In respect of forward exchange contracts entered. Service Tax and VAT Accounts” till it is utilized. as stipulated. 6. Gujarat on first pari passu basis and by way of second pari passu charge over fixed assets situated at Survey No. and the difference arising out of such conversion is recognised in the Profit and Loss Account. service tax and VAT credits.12-A. Taluka Vagra.73 Lacs (previous year Rs.64 Lacs). Figures of the previous year have been regrouped or rearranged. in the opinion of the management. loans and advances are approximately of the values stated if realised in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.12-A. District Sangli. is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax within the period prescribed for utilization of such credit. monetary assets and liabilities in foreign currency are restated by applying the closing rate. being the differences between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. 26 and 27. annual report 2009-10 39 . Village – Dahej. Gains or Losses on settlement of the transactions are recognised in the Profit and Loss Account. the lender also has a charge/lien over the escrow account. the company has received compensation of Rs. Gujarat. Service tax and VAT on inputs and services are carried forward in current assets and is included in “Balance in Excise. Consequently such inputs and services are accounted for exclusive of excise duty. UCO Bank and Oriental Bank of Commerce are secured by joint equitable mortgage of lease hold land and building and hypothecation of all movable fixed assets of the Company situated at Plot No. District Panchmahals 3. GIDC Estate. 26 and 27. District Bharuch. Minimum Alternate Tax (MAT) paid on the book profits. In respect of unclaimed dividends. From the current year. GIDC Estate. During the year.75 million (previous year US $ 1. Taluka Goghamba.V. In the opinion of the Board of Directors. Further. Up to last year. Taluka Ghoghamba. Village – Dahej. this change will result in more appropriate presentation of the financial statements of the Company. Rupee Term Loans from United Bank of India. Maharashtra. Due to this change. Survey no 16/3. where the collections of sales of electricity are to be deposited.16/3. for phased reduction and cessation of CFC production and dismantling of plant. the current assets. Deferred tax is recognised on timing differences. 5. The deferred tax in respect of timing differences which reverse during the tax holiday period is not recognised to the extent the Company’s gross total income is subject to the deduction during the tax holiday period. are secured by first pari passu charge over stock and book debts of the Company’s Dahej Plant situated at Plot No. Village Ranjitnagar. equivalent to US $ 1. subject to consideration of prudence. 4. cost was determined using FIFO method. k) CENVAT and VAT CREDIT Excise duty. cost is determined using weighted average cost method since. l) FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currency are recorded in rupees by applying the exchange rate at the date of the transaction. which gives rise to future economic benefits in the form of tax credit against future income-tax liability. 2. 905 lacs. Foreign Currency Term Loan from ICICI Bank Limited is secured by equitable mortgage of land and hypothecation of all movable property of the Company for wind mills situated at Gude Panchgani.Gujarat Fluorochemicals Limited j) TAXES ON INCOME Income tax expense comprises of current tax & deferred tax charge. Taluka Vagra. Working Capital Loan from Canara Bank is secured by equitable mortgage of land and hypothecation of stocks and book debts of the Company’s refrigerant plant located at Ranjitnagar. the value of inventories as at 31st March 2010 and the profit before tax for the year are higher by Rs.

11 52.sales Caustic Soda .10 57062336 57062336 948.92 3266.production .47 40 annual report 2009-10 .opening stock .captive consumption .32 2484.sales .production .captive consumption .closing stock Anhydrous Hydrochloric Acid .installed capacity .captive consumption .sales . Production.83 14.04 2262.96 4.91 54000 172 46016 2054 43969 164 48600 84 39686 36098 3579 93 41250 819 32743 17238 15182 1143 5500 91 2121 1033 834 345 3750 396 544 537 403 29.sales Coal Power .63 7.10 81546389 81546389 25.36 2444.opening stock .07 51.68 5.production .86 62931.opening stock .production .20 18805.89 1603. Sr.90 1512.86 3014.captive consumption .captive consumption .33 47295.sales .68 7112.opening stock .production .opening stock .71 51.31 1015.production .installed capacity .production .production .67 1088.46 0.closing stock Chloromethanes . Particulars of Capacity.opening stock .80 4801.16 3443.closing stock Poly Tetrafluoroethylene (PTFE) .52 18689.39 148.purchases .81 3812.43 0.sales .09 46.53 9616.06 2809.sales .sales .17 172.installed capacity .installed capacity .94 1127.67 28.26 477.closing stock Carbon Credit Revenue By-products and other sales MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MW Units Units MW Units Units Units MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT MT 25000 4048 24387 69 5341 19565 3599 31 11 3 5000 10 828 834 4 65.installed capacity .Gujarat Fluorochemicals Limited 8.73 25000 766 24968 7 4267 17425 4048 156 125 31 5000 16 967 973 10 35.installed capacity .sales .09 161.closing stock Post Treated Poly Tetrafluoroethylene (PT PTFE) .20 1894.10 101767236 20365777 81401459 54000 164 53329 1544 51842 107 48600 93 45630 43960 1609 154 41250 1143 43667 20089 24370 350 5500 345 2169 1439 898 177 3750 403 1215 837 781 3812.31 4.94 5158.production .installed capacity .84 0.07 7151.46 1915.01 0.sales .closing stock Wind Power .04 1512.31 32.44 172. No.closing stock Liquid Chlorine .closing stock Hydrofluoro carbons and Other Refrigerant Gases .07 300.opening stock .opening stock .94 0.91 18.32 1314.installed capacity . Turnover and Stocks : Products UOM Quantity 2009-2010 Value (Rs in lacs) 2009-2010 Quantity 2008-2009 Value (Rs in lacs) 2008-2009 I II III IV V VI VII VIII IX X XI XII Refrigerant Gases (HCFCs and CFCs) .29 253.captive consumption .39 266.71 28.78 162.installed capacity .90 1088.

13 86. iv. Production is net of filling and other losses.31 14405.03 15266.51 27.85 34013.39 10692.40 14405.35 1537.31 36.22 2326. annual report 2009-10 41 .49 Total Commission payable for the year @ 5% 2201. the Company’s products are exempted from licensing provisions under the Industries (Development and Regulation) Act. 9.00 62.03 3502.51 0.26 5562.87 2020.23 6.49 Note: Commission payable to the Chairman is subject to approval of the share holders at the ensuing Annual General Meeting.74 Amount (Rs.71 30.25 Percentage 2009-2010 2008-2009 Value (Rs in lacs) 2009-2010 2008-2009 22.37 2020.49 29.19 232. Above information is furnished in respect of the products of the Company which are primarily meant for sale.06 2201.97 1391.25 Percentage 2009-2010 2008-2009 74.69 63.18 2008-2009 72.55 2326.56 25. Installed capacities are as certified by the management on which the Auditor’s have relied.77 3014.62 1.00 268. ii. iii.17 15266.00 Commission payable to Managing Director for the year @ 4% 1761.21 0. 1991.37 2127. being a technical matter.53 77.85 3646.39 1769.47 2276.34 16561.31 1567.15 1559.21 50512.Gujarat Fluorochemicals Limited i.67 73.00 440.37 1969.35 1.44 100.00 100.47 100.44 Net Profit for Commission to Chairman & Managing Director 44034.34 0.00 13.84 3.00 11.00 6790.09 2.85 733. 1951.22 33415.44 0.62 2348. in lacs) Salary and allowances Commission to Chairman and Managing Director Perquisites Contribution to Provident Fund Total Computation of Net Profit for Commission to Chairman and Managing Director Profit as per Profit & Loss Account Add: Directors’ Sitting Fees Managing Director’s and Whole time Directors Remuneration Loss on sale of investments (net) Provision for doubtful debts/advances Provision for Diminution in value of Investments Wealth Tax (net) Taxation (net) Sub-total Less: Provision for doubtful debts/advances written back/adjusted Profit on Sale of Investments (net) Sub-total 2009-2010 88.71 2020. Managerial Remuneration : 28916 16865 1883 15448 25992 19935 1683 12128 5680.19 1953.00 1513.77 9703.87 100. issued by the Ministry of Industry. Vide notification No SO 477(E) dated 25th July.21 Commission payable to Chairman for the year @ 1% 440.02 62.27 4354.38 13427.85 2127.12 5. Quantity (in MT) Value (Rs in lacs) 2009-2010 2008-2009 2009-2010 2008-2009 Raw Materials consumed Fluorspar Chloromethane AHF Methanol Others Total 10 Imported and indigenous raw material consumed Imported Indigenous Total 11 Imported and indigenous stores and spares consumed Imported Indigenous Total 12.03 3566.00 Value (Rs in lacs) 2009-2010 2008-2009 10758.14 45.

00 2008-2009 27.69 Stores and spares 492.45 3954. 2008 and had also approached the Delhi High Court for interim protection. Total Expenditure in foreign currency : (Including Amount Capitalized) Particulars Royalty Professional and Consultation fees Interest Others-Lease Rent.32 29.62 per MMBTU (plus applicable taxes thereon).81 59. Total 11919.53 11511.62 per MMBTU (plus applicable taxes thereon).58 Lacs (previous year Rs. net of advances – Rs.22 14.60 Amount (Rs in lacs) 2009-2010 28. Sales Commission.23 42 annual report 2009-10 .33 1447. for supplies made from April.90 3. for purported termination of the Gas Supply Agreement.95 20. 2622.60 per MMBTU (plus applicable taxes thereon) to US $ 24.13 1810.00 0. in lacs) 2009-2010 7.94 Lacs (previous year Rs. 2009.02 1.03 4. 2008. Contingent liabilities not provided for in respect of :Particulars Sales Tax Income Tax Service Tax Bills discounted Bank Guarantees Claims against the Company not acknowledged as debts Claims in respect of labour matters Amount (Rs.25 0.00 Amount is not ascertainable Note: Amount of Rs.38 per MMBTU (plus applicable taxes thereon).81 872.44 496.48 1721.00 3. 2008 till December.00 5. CIF value of imports of :Amount (Rs.25 13693. from US $ 4.12 Lacs) 17. in lacs) Particulars 2009-2010 2008-2009 Raw materials 10221. Travelling etc. Consolidated Accounts Certification Out of pocket expenses Service Tax Total Amount (Rs.59 1249.16 1153.50 1. These proceedings have been settled out of Court with GGCL on 17th December. Income Tax and Service Tax demands and not charged to the Profit and Loss Account.14 32.47 Capital goods ( Including capital work in progress) 1205. and it has been agreed that the amounts paid by GFL to GGCL pursuant to the interim orders of the Honorable High Court of Delhi.00 2. 36.35 0.44 18. 30.61 5490.12 107.41 2008-2009 191.44 1.13 932. 10067. The Company had commenced arbitration proceedings against Gujarat Gas Company Limited (GGCL).33 3399. 15.27 48.90 4. in lacs) 2009-2010 6.34 Lacs) has been paid in respect of above Sales Tax.31 505. at US $ 10 per MMBTU (plus applicable taxes thereon). Estimated amount of contract remaining to be executed on capital account and not provided for. amounting to Rs 2886 Lacs. and purported increase in price of gas supplied. Corporate Governance. the difference @ US $ 5.89 2008-2009 5. 2008 and 31st December.50 6. 16.20 18. shall be the final agreed price for supplies made during 1st April.55 1321.Gujarat Fluorochemicals Limited 13. Particulars of Payments to Auditor’s Particulars Audit Fees Tax Audit Fees Fees for taxation matters Limited Review.00 2. is charged to books of accounts in the Power & Fuel expenses in this year on settlement during the year. Since this gas supply was accounted earlier at a price of @ US $ 4.

39 33415.03.62 [II] Segment Result i.18 107805.16 9124.71 9306.07 4803.Gujarat Fluorochemicals Limited 19.70 9999. in lacs) 2009-2010 18046. Calculation of Earnings Per Share (EPS) Particulars a) Amount used as the numerator . Chemicals ii.82 47295.10 9773. Power iii.28 39304.62 115780000 5930000 109850000 113711390 1 29.91 22.31 13633.67 634.41 122289.55 (B) 21.42 2008-2009 34013.25 62931. Amount (Rs.20 81734.35 109850000 0 109850000 109850000 1 30.) c) Equity shares bought back – (Nos.34 34013.24 5974. in lacs) Year Ended 31.Power Total External Revenue 89432. Un-allocable and Corporate Total Segment Revenue Less : Inter Segment Revenue.32 16897.63 3166.19 57138.Profit after taxation (Rs in lacs) b) Equity shares outstanding at the beginning of the year – (Nos.57 43237.99 1771.10 23924. (A) Major components of the net deferred tax liability : Deferred Tax Liabilities (i) Depreciation Total Deferred Tax Assets (i) Retirement benefits (ii) Others Total Net Deferred Tax Liability (A-B) Amount (Rs.71 153.96 13427.74 6790.19 50732.89 65736.33 40205.60 9306.37 14484.2010 Year Ended 31. in lacs) 2009-2010 2008-2009 9999.96 119331.05 226.05 33.38 28.) Segment Information (A) Information about Primary (Business) Segment: Description 2009-10 33415.14 394.43 3933.77) 4999.) f) Nominal value of each share – (Re) g) Basic and Diluted Earnings per share (Rs.) e) Weighted Average equity shares outstanding for the year – (Nos.70 193.51 6406.12 20. Earning in foreign exchange : Particulars FOB value of exports Other recoveries on exports Carbon Credit Revenue Total Amount (Rs. Chemicals ii.97 47440.78 182. Power Total Segment Result Add/(Less): Un-allocable Income /(Expenses)(net) Less :Interest expenses Total Profit Before Tax Less : Taxation (including Deferred tax and Fringe Benefit tax) Net Profit After Tax annual report 2009-10 43 .03.03 105698.70 (4697.2009 [I] Segment Revenue i.85 2008-2009 18168.35 102225.) d) Equity shares outstanding at the end of the year – (Nos.

50 2008-2009 22718.84 99547.00 0. Power iii. Un-allocable and Corporate Total c] Capital Expenditure (Including Capital Advances) i.58 103121.55 17887. Chemicals ii. Chemicals ii. The disclosures regarding geographical segments are made accordingly. the entire production is indigenously sold/consumed. in domestic and overseas market.22 101121.77 201.93 4791. Segment-wise revenues are as under: Amount (Rs in lacs) Particulars Domestic Overseas Total 2009-2010 32897. Power iii.57 468.03 5324. In respect of power segment. the expenses.96 5703.24 16088. assets and liabilities to these geographical segments. it is not possible to directly attribute or allocate on a reasonable basis.59 49747. Chloromethane.17 88035. PT-PTFE and revenue from Carbon Credits.34 2409.Comprising of Refrigerant gases.33 1626. PTFE.00 268.00 1559.44 2915.17 1343.24 3091.00 23663. 4) The above segment information includes the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis. [C] Notes: 1) The Company operates in following business segments: a. 3) Chemicals business is operated in two geographical markets. Power iii.84 1559.28 107531. in lacs) [III] Other Information a] Segment Assets i.64 68288. Power iii.Gujarat Fluorochemicals Limited Amount (Rs. Un-allocable and Corporate Total d] Depreciation & Amortization i. Power .85 98634.13 31489. Chemicals ii. Caustic-Chlorine.88 176.05 81734.65 230614.00 0.18 62795. Anhydrous Hydrochloric acid.70 451. Chemicals .75 21694.Comprising of Power Generation. Un-allocable and Corporate Total b] Segment Liabilities i. b.23 4718.44 0.07 0.63 21348. Chemicals ii.12 104452. Un-allocable and Corporate Total e] Non-cash expenses (other than depreciation) i. Un-allocable and Corporate Total [B] Information about Secondary (Geographical) Segment: The Company derives revenue from both domestic and overseas markets.50 182. 44 annual report 2009-10 .64 65736.09 268.09 As the Company has integrated manufacturing facilities.37 253952.51 81319. Power iii. which are considered different geographical segments. 2) Inter-segment revenue comprise of power generated by Captive Power Generation Units and consumed in Chemical Business and is priced at estimated market value. Chemicals ii.15 85655.

03 14.08 231.40 0.47 22.07) 2008-2009 3.40 2069.2006 up to the year end. the Company had paid an amount of Rs.34 lacs).37 71. (each.2006 on the above amount.64 3. Prior period items : A) Debits Legal and Professional Expenses Freight Repairs to Plant & Machinery Repairs to Building Travelling expenses Equipment Hire charges Production & Maintenance Labour charges Provision for Leave Encashment Others Total (a) B) Credits Foreign Exchange Fluctuation Difference Total (b) Net Prior Period Items Amount (Rs.18 0. unpaid at the year end. 2006 at the year end.15 231. Small and Medium Enterprises Development Act. Ltd in the People’s Republic of China.36 Interest accrued and not paid to suppliers under MSMED Act.58 45. based on the audited accounts for the year ended 31st December 2009.98 0. without elimination of the effect of the transactions between the Company and the JVC) related to its interest in this JVC.38 7. 2006.09 2008-2009 23.No. 25. 2009-2010 8. income and expenses etc. 2006 (Sec 16) during the year Interest due and payable to suppliers under MSMED Act for payments already made.40 1.44 1505. Joint Venture: During the year ended 31st March 2008.86 24. Interest accrued and due to suppliers under MSMED Act.43 1. Small and Medium Enterprises under Micro.84 0. Payment made to suppliers (other than interest) beyond the appointed date during the year Interest paid to suppliers under MSMED Act..00 71.37 4. in lacs) S. a) The financial year of the JVC is January to December.35 0. 2010.00 1.32 0.00 0. The Company’s share of each of the assets. liabilities.64 2.12 millions (previous year US $ 2.38 16.71% of the equity capital allotted in earlier year). the Company had entered into an agreement for formation of Joint Venture Company (“JVC”) viz. 0. in lacs) 2009-2010 3. the Company is informed that 33. are as under: Amount (Rs. Up to 31st March.66 2287. During the current year.Gujarat Fluorochemicals Limited 23. Amount (Rs in lacs) Particulars Principal amount due to suppliers under MSMED Act. 1263.89 lacs (previous year Rs 1151.00 3. equivalent to US $ 3.15 (169.00 32.77 7. i) ii) iii) iv) Particulars Assets Liabilities Income Expenses 2009 2894.77% of the equity capital in the JVC has been allotted to the Company (including 31.06 62.20 0.93 millions) as share application money towards investment in the JVC. The JVC is engaged in the business of manufacture of anhydrous hydrogen fluoride and allied activities.67 2. Xuancheng HengYuan Chemical Technology Co.36 annual report 2009-10 45 .12 2.94 The above information has been determined to the extent such parties have been identified on the basis of the information available with the Company.23 0.84 24.38 0. The Particulars of dues to Micro.

46 793.97 20.12 7.62 3145. 2009 is Rs.see note(a)) Inox Chemicals Private Limited Refron Valves Limited Rajni Farms Private Limited Sidhapavan Trading and Finance Private Limited Siddho Mal Investments Private Limited Particulars of transactions Holding Company Subsidiary Company Joint Venture Key Management Personnel Relative of key Management Personnel Related Party Disclosures : (B) (ii) Particulars Amount (Rs.08 104.46 0. 2009 is Rs.00 0. being a related party.45 3116.37 0.00 0.Gujarat Fluorochemicals Limited b) c) d) 26.69 3250. has significant influence Devansh Gases Private Limited Devansh Trading and Finance Private Limited Inox India Limited Inox Air Products Limited Inox Leasing & Finance Limited.86 0.00 17. Ltd Others Total 2008-09 200 9-10 2008-09 200 9-10 2008-09 200 9-10 2008-09 200 9-10 2008-09 200 9-10 2008-09 200 9-10 2008-09 16.00 0.55 3250. in lacs) Enterprises over which KMP has significant influence Total 200 9-10 A) Transactions during the year Sales of Goods Inox Air Products Limited GFLAmericas LLC Others Total Purchase of Assets Inox Wind Limited Total Purchase of Goods Inox Air Products Limited Inox India Limited XHCT Co.45 793. are disclosed in note no.86 143.26 143. The Company’s share of contingent liability of the JVC as at 31st December.45 46 annual report 2009-10 .04 0.46 7.44 0. Nil.00 0.08 104.00 0.e. Ltd) Key Management Personnel Shri V K Jain (Managing Director) Shri D K Sachdeva (Whole Time Director) Shri J S Bedi (Whole Time Director) Relatives of Key Management Personnel Shri D K Jain (Father of Shri V K Jain) Shri P K Jain (Brother of Shri V K Jain) Shri Devansh Jain (Son of Shri V.37 16.04 37.00 0.74 70.00 0.25 0.00 0.00 70.26 2902. (i) (A) The Company’s share of capital commitments in the JVC as at 31st December.( up to 17th September. 2008.97 20. The Company’s transactions with JVC. Nil.26.74 2902.01 7.00 0.86 0.62 3145.44 793. Ltd (XHCT Co. Names of Related Parties Where control exists: Holding Company: Inox Leasing & Finance Limited (w.46 2972.25 0.44 20.f.46 0. Jain) Enterprises over which Key Management Personnel.00 143. or his relative.K.12 7.46 793. 18th September 2008-see note (a)) Subsidiary Companies: Inox Leisure Limited Inox Infrastructure Private Limited Inox Motion Pictures Limited Inox Wind Limited (Incorporated on 09th April 2009) Gujarat Fluorochemicals Americas LLC (GFL Americas LLC) (Incorporated on 08th September 2009) Other related parties with whom there are transactions during the year: Joint Venture Xuancheng HengYuan Chemical Technology Co.

10 1281.75 47.73 14.00 0.40 0.81 0.00 0.00 5.80 8.94 204.00 525.00 18200.00 8.03 0.20 103.00 0.11 48.00 525.94 18.43 0.00 6.14 0.00 2008-09 200 9-10 0.81 0.00 18.45 253.15 52.51 126.10 4.25 1.50 2. Ltd Total Interest received Inox Motions Picture Limited Inox Wind Limited Inox Leisure Limited Total Expenses (Repairs) Inox India Limited Refron Valves Limited Total Reimbursement of expenses (paid) Inox Air Products Limited Inox India Limited Inox Leasing & Finance Limited Inox Leisure Limited Inox Wind Limited Total Reimbursement of expenses (received) Inox India Limited Inox Motions Picture Limited Inox Wind Limited Inox Leasing & Finance Limited GFLAmericas LLC Others Total Rent Received Inox Air Products Limited Others Total Rent & Lease Rentals paid Inox Air Products Limited Devansh Gases Private Limited Inox Leasing & Finance Limited Others Total O&M Charges paid Inox Air Products Limited Total Dividend Received Inox Leisure Limited Total 2008-09 2009-10 300.00 0.67 57.00 1263.87 3.10 75.00 0.78 84.45 253.14 0.89 0.00 0.14 0.00 6.80 0.00 2999.95 18.78 8.67 57.00 116.11 48.84 3499.00 0.43 6.00 36.81 192.50 2.95 18.31 52.46 0.40 0.00 36.00 69.94 18. in lacs) Particulars Holding Company Subsidiary Company Joint Venture Key Management Personnel Relative of key Management Personnel Enterprises over which KMP has significant influence Total 2009-10 Inter-corporate Deposits given Inox Motions Picture Limited Inox Wind Limited Inox Leisure Limited Total Inter-corporate Deposits received back Inox Leisure Limited Inox Motions Picture Limited Total Equity shares Subscribed Inox Motions Picture Limited Inox Wind Limited GFLAmericas LLC XHCT Co.00 0.80 2604.84 1263.14 0.72 46.67 12.Gujarat Fluorochemicals Limited Amount (Rs.12 8.76 0.00 8.00 525.00 396.20 65.81 137.37 4.00 0.70 5.89 4763.00 1.94 4.10 75.00 4.00 77.87 3.00 1281.31 396.72 137.70 5.30 0.00 63.78 5.31 6.00 4.70 0.00 18.55 0.00 0.72 46.00 2679.00 0.00 63.00 0.43 0.00 0.00 116.00 0.20 102.25 1.12 0.00 2679.67 396.00 13200.94 4.93 0.55 0.37 0.00 1.89 0.00 1263.00 13.72 126.02 0.14 57.78 295.81 192.00 0.95 52.00 13200.80 116.00 1281.00 77.00 525.94 204.00 0.10 1281.80 4.69 5.00 1.20 1.00 2604.00 5.94 57.34 8.00 36.48 0.06 0.37 12.76 0.00 0.06 0.72 126.48 5.76 0.00 2008-09 0.24 295.72 137.00 4700.75 47.00 396.00 0.00 0.00 77.99 126.00 2999.30 0.00 0.00 18200.20 36.69 5.00 1.00 0.37 4.31 52.20 1.00 18.00 82.00 74.00 0.39 6.03 0.00 4700.00 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 2008-09 2009-10 300.93 0.00 0.70 0.67 4.14 0.00 annual report 2009-10 47 .70 137.00 0.80 116.00 0.00 0.

10 0.92 2133.89 204.15 1335.80 304. transactions upto 17th September 2008 are classified as transactions with “Enterprises over which Key Management Personnel. Ltd GFLAmericas LLC Inox Infrastructure Private Limited Inox Motions Picture Limited Total Amount payable Shri V K Jain Shri D K Jain Inox Wind Limited Others Total Amount receivable Inox Leisure Limited-ICD Inox Wind Limited-ICD Inox Motions Picture Limited-ICD Others Total 2008-09 200 9-10 2008-09 200 9-10 2008-09 200 9-10 1818.00 8965.28 864.39 lacs (Previous years Rs 33.72 0.87 2008-09 200 9-10 2073.72 304.00 1263.40 0.00 Nil (b) (*) Also “a company under the the same management”.00 0. or his relative.38 5.84 1891. has significant influence” and transactions w.00 8965.79 1604.14 1612.00 5000.34 0.00 225.00 4700.41 2008-09 2073.40 1340.05 0.00 0.00 13125.00 8.45 0.00 0.10 Lacs.00 5.00 0. 2008.00 300.84 5000.93 864. (Maximum balance Rs.94 1263.05 0.00 5.40 0.31 12200.64 1335.92 lacs ) paid to firms in which one of the director is partner.93 0.25 440.11 3960.00 0.89 0.28 4.54 2127. or his relative.00 Nil Inox Wind Ltd 4700.41 222.05 0. in lacs) Particulars Holding Company Subsidiary Company Joint Venture Key Management Personnel Relative of key Management Personnel Enterprises over which KMP has significant influence Total 200 9-10 Remuneration paid Shri V K Jain Others Total Commission paid to Chairman Shri D K Jain Total Sitting Fees Shri D K Jain Shri P K Jain Total B) Amounts outstanding Investment in Shares Inox Leisure Limited Inox Wind Limited XHCT Co.31 54.19 181. has significant influence.79 17208. 18th September 2008 are classified as transaction with “Holding Company”.00 4620.00 83.00 4. 2560.00 300.38 72.85 4620.00 0.00 440.59 1521.Previous year amount outstanding Rs.00 8.“ ILFL has become a Holding Company w.00 0.e.00 203.00 4700.80 0.23 5.34 440.00 14389.45 181.00 0.44 2999.00 4700.00 83.80 Lacs) 27.00 225.00 1219.24 Notes: (a) Inox Leasing & Finance Limited (ILFL) was an “Enterprise over which Key Management Personnel.Gujarat Fluorochemicals Limited Amount (Rs.22 3960.e.f.12 0.94 204.00 0. Hence.00 0.00 13.41 0.38 2008-09 200 9-10 2008-09 200 9-10 1818.84 5000.f 18th September.80 864.85 5.45 304.00 0.00 13.00 0. Legal & Professional fees includes Rs 8.41 0.31 59.41 67.44 2999.84 1224.80 0. 1604.79 1604.45 0. Additional disclosure as required by Listing Agreement in respect of loans given: Name of the Loanee Amount of loan at the year end Maximum balance during the year Investment by the loanee in the shares of the Company Inox Leisure Ltd (*) 12200.00 0.00 Nil Inox Motions Pictures Ltd 225.00 1263.89 0.73 0.00 5000.34 0.46 1885.14 1612.45 203. 48 annual report 2009-10 .00 185.10 0.05 0.67 2611.85 0.00 13200.34 440.24 12200.79 17208.00 0.00 300.19 1219.38 5.

06 18.73 (1.34 (9.13 10.45 14. seniority.55 16. Actuarial Assumptions Discount Rate Salary Escalation Rate Retirement Age Withdrawal Rates Mortality 8% 8% 7% 8% 60 years 5% LIC (1994-96) Published table of rates 8% 8% 7% 8% 76.90 1323.22 lacs (Previous Year Rs138. The estimate of future salary increase.06 150.56) (86.19 (86.52 53. Employee Benefits: a) b) Defined Contribution Plans: Contribution to Provident Fund of Rs.26 2959.55 (26.44 Gratuity 2008-2009 Leave Encashment 2009-2010 Leave Encashment 2008-2009 The above defined benefit plans are unfunded.35 10.69 76.24 2117.06 274.08 (13.03 16.13 (39.90 annual report 2009-10 49 .50) 339. Expenses recognized in the Profit and Loss Account Current Service Cost Interest Cost Actuarial (Gain)/Loss Expenses recognized in the Profit and Loss Account 3. Change in Benefit Obligation Liability at the beginning of the year Interest Cost Current Service Cost Benefit paid Actuarial (Gain)/Loss Liability at the end of the year 2.01) 35.55) (11. Defined Benefit Plans: The amounts recognized in respect of Gratuity and Leave Encashment – as per Actuarial valuation as on 31st March 2010 Amount (Rs. Accumulated Depreciation as at the end of the year Depreciation for the year Future minimum lease payments (a) (b) (c) Not later than one year Later than one year and not later than five years Later than five years 775. Particulars Amount ( Rs. promotion and other relevant factors such as supply and demand in the employment market.86 143.39 2941. take account of inflation. No.07 0.86 150.19 65.Gujarat Fluorochemicals Limited 28.07 35.19 65.09) 274. considered in actuarial valuation.162.84 10.34 239. Disclosure as required by Accounting Standard – AS 19 on “Leases” – A) In respect of assets given on Operating Lease :Sr.44 10.12 914.09) 61.73 45.63 lacs) is recognized as an expense and included in ‘Contribution to Provident & Other Funds’ in the Profit and Loss Account. 29.46) 0.52 38.69 (15.99) (15.55) 129.08 18. in lacs) 2009-10 2008-09 (i) (ii) (iii) (iv) Gross carrying amount of asset given on operating lease included in Buildings & Road block of fixed assets.86 46.27 45.50) 79.90 914.56 14.20 737.16) (1. in lacs) Particulars Gratuity 2009-2010 1.

range between 11 months to 5 years and are usually renewable by mutual consent on mutually agreeable terms. these lease arrangements are non-cancellable. Payable in future 2009-2010 2008-2009 a) b) c) a) Not later than one year Later than one year and not later than five years Later than five years 35. The aggregate lease rentals are charged as “Rent” in Schedule 12 to the Profit and Loss Account. 30. P. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V. K.02 The Company’s other significant leasing arrangements are in respect of operating leases for premises (offices and residential accommodations) taken on lease.Gujarat Fluorochemicals Limited (v) General description of significant Leasing arrangements – Assets given on operating lease are Office Premises.12 97. DESAI Company Secretary SHAILENDRA SWARUP Director S.12 61.28 141. B) In respect of assets taken on operating lease: The lease is for an initial non-cancellable period of ten years.28 141. JAIN Director 50 annual report 2009-10 . The non-cancellable initial lease tenure is for five to nine years. V. The lease rentals are included in Lease Rentals and Hire Charges in Schedule 12 to the Profit and Loss account. 1956. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D. which can be further extended at the mutual option of both the parties.No. The future minimum lease payments under this lease arrangement are as under:Amount (Rs. K. Generally. S. JAIN Chairman B. in lacs) S.74 35. Statement Pursuant to Part IV of Schedule VI to the Companies Act. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S. is enclosed vide Annexure. which can be further extended at the mutual option of both parties.

Expenditure Accumulated Losses N IV Turnover (Net) 1 0 4 5 0 6 2 3 V 9 0 0 8 5 . 2 7 4 8 4 2 + / (-) Profit/(Loss) Before Tax Earning per share (Rs.) GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF COMPANY (As per monetary terms) Item Code No (ITC Code) Product Description Item Code No. THOUSAND) B O N C E D annual report 2009-10 51 . (ITC Code) Product Description Item Code No. 1956 Balance Sheet Abstract and Company’s General Business Profile I REGISTRATION DETAILS Registration No Balance Sheet Date L 2 4 1 1 0 G J 1 9 7 P L C 0 0 9 3 6 2 3 1 0 3 1 0 State Code 0 4 Date II Month Year CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS THOUSAND) Public Issue N Bonus Issue N I L I L Right Issue N N I I L L Private Placement III POSITION OF MOBILISATION AND DEPLOYLMENT OF FUNDS (AMOUNT IN RS THOUSAND) Total Liabilities 2 5 3 9 5 2 1 3 2 5 Total Assets 3 9 5 2 1 3 Sources of Funds Paid-up Capital 1 Secured Loans 2 8 0 5 8 2 9 0 9 8 5 0 1 Reserves & Surplus 5 1 7 3 2 6 0 Unsecured Loans 2 5 7 2 9 1 5 Deferred tax Liability 9 Net Fixed Assets 1 1 2 9 1 8 6 5 7 3 1 1 9 3 7 7 7 7 3 6 0 Investments 4 N 8 I 6 L 7 0 4 Application of Funds Net Current Assets Misc. (ITC Code) Product Description P O L C C H A L R N O T 3 Y 2 O 9 R A 9 T 0 O P 0 E 3 F P 4 T 1 L L R 0 R 0 U I 0 A F L U O R O E T H Y L E N E O C R A I O B T C L R A E E V E N U E R B O N S I L Total Expenditure 6 3 5 3 4 4 9 1 2 5 3 5 3 5 4 5 0 + / (-) Profit/(Loss) After Tax Dividend Rate @ % PERFOMANCE OF COMPANY (AMOUNT IN RS.Gujarat Fluorochemicals Limited Statement Pursuant to Part IV of Schedule VI to the Companies Act.

....... Andheri (E)......... Vadodara ...390 007 Contents Notice.......... Siddharth Jain Non Executive Director Mr...... Cash Flow Statement ........................ Directors’ Report ..................Board of directors Mr.. 2 5 11 14 23 26 27 28 29 corPorate office 5th Floor.. Schedules . Vimal Mittal Independent Director Mr... Alok Tandon coMPaNY secretarY & Vice PresideNt .......... Old Padra Road..... Parte aUditors M/s...................... Next to Andheri Flyover... Mumbai .......... Auditors’ Report . Deepak Asher Non Executive Director Mr................... Corporate Governance Report ........ Rajesh D..... Western Express Highway......................... Sanjeev Jain Independent Director cHief eXecUtiVe officer & MaNaGer Mr...............10 .... Haigreve Khaitan Independent Director Mr.LeGaL Mr... 52 Annual Report 09 ............... Viraj Towers......... Management Discussion and Analysis............400 093 Inox Leisure Ltd..... Balance Sheet ... Pavan Jain Non Executive Director Mr................ Profit and Loss Account .. 2nd Floor.... Vivek Jain Non Executive Director Mr................................................. Patankar & Associates Chartered Accountants reGistered office ABS Towers.................

31 lacs. your Directors do not recommend any Dividend for the financial year ended 31st March 2010.39% compared to the previous year. during the year.31.65.821 was added taking the tally of Multiplex Cinema Theatres to 32 with 119 screens and 33.32) 363.44 Lacs.71 447. 2010 25611. 2011. 3883.03 4087. Depreciation and Tax (PBIDT) Less: Depreciation Profit before Interest and Tax (PBIT) Less: Interest Profit before Tax (PBT) Less: Provision for Taxation For the year Earlier Years Profit after Tax (PAT) Add: Profit brought forward from previous year Balance carried to Balance Sheet for the year ended 31st March. The profit after tax increased by 7. 5.97 1811. As on 31st March 2009. as a Manager of the Company pursuant to the provisions of Section 269 of the Companies Act 1956.84 (444.83 6183.24 (1043.86 lacs. iNVestMeNt iN sHares of faMe iNdia LiMited: With a view to consolidate its position in the multiplex industry. 25611. Company had 26 Multiplex Cinema Theatres with 91 screens and seating capacity of 26.48) 2434. 1.45 2341. diVideNd: With a view to conserve the resources for ongoing and future projects being implemented by the Company.25 2437. 2. 2009 22788. directors’ resPoNsiBiLitY stateMeNt: As required under section 217(2AA) of the Companies Act. acquired 1. the Company has filed Draft Letter of Offer with SEBI for acquiring further 82.96 % to Rs. The PBIDT decreased by 5.76 3577.48% of the share capital of Fame.835 Seats. 1997. for a further period of one year from 1st October 2010 to 30th September.44 (794.08 1143. Fame shall become a subsidiary of the Company on completion of the Open Offer formalities. 3.96 1650.24) 599. the Company has.05% % to Rs.01) 2605.86 1542. .759 Equity Shares of Fame by way of Open Offer to the Shareholders of Fame. fiNaNciaL resULts: Particulars income Sales and other Income Profit before Interest.75 3577.83 During the year under review. During the year ended 31st March 2010. Alok Tandon . 6 Multiplex Cinema Theatres with 28 screens and seating capacity of 6.87 1989.288 Equity Shares of Fame India Limited (“Fame”) consisting of 50.59 (Rs.00% to Rs. 1811. The profit before tax was lower by 8. Based on legal advice received by the Company. 2605.656 seats. the Company achieved Sales and other Income of Rs.Chief Executive Officer. subject to approval of the Shareholders at the ensuing Annual General Meeting. As required under Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations.76 Lacs compared to Rs. 2010.DiRectoRS’ RePoRt Your Directors take pleasure in presenting to you the Eleventh Report on the business and operations of the Company together with the Audited Accounts for the year ended 31st March. 2434.31 3883. In Lacs) for the year ended 31st March. 4.75.69 (1158.41 529. 1956.08 Lacs in 2008-09. your Directors would like to confirm that: Annual Report 09 .10 53 Inox Leisure Ltd. reaPPoiNtMeNt of MaNaGer: It is proposed to re-appoint Mr. showing a growth of 12.

DiRectoRS’ RePoRt a. 8. Haigreve Khaitan. The annexure is available for inspection at the Registered Office of the Company. A certificate has been received from them that their appointment. brief resume of Mr. Sanjeev Jain for the office of Director liable to retire by rotation. 54 Annual Report 09 . qualifications or adverse remarks in the Auditor’s Report. 1956 and Article 141 of the Articles of Association of the Company. 10. 10 each were allotted to the employees of the Company pursuant to the options vested in them as per the Employee Stock Option Scheme. PersoNNeL: We continue to have cordial and harmonious relationship with our employees. 1956. The Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year. 6. The Directors have prepared the Annual Accounts on a going concern basis. 2010. will be in accordance with the limit specified in Section 224 (1B) of the Companies Act. the Directors’ Report is being sent to all the shareholders of the Company excluding the aforesaid annexure. Haigreve Khaitan and Mr. if made. In accordance with stipulation under Clause 49 of the Listing Agreement. the applicable Accounting Standards have been followed. c. Any shareholder interested in obtaining a copy of the said annexure may write to the Company Secretary at the Registered Office of the Company. In the preparation of the Annual Accounts. Siddharth Jain. who retire at the conclusion of the ensuing Annual General Meeting and being eligible. The notes forming part of the accounts are self explanatory and do not call for any further clarifications under Section 217(3) of the Companies Act. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. aUditors’ rePort: There are no reservations. 9. The disclosures as required under the Guidelines issued by Securities Exchange Board of India on Employee Stock Option Scheme / Employee Stock Purchase Scheme are given in Annexure – A” Inox Leisure Ltd. offer themselves for re-appointment. Mr. Siddharth Jain and Mr. the names and other particulars of employees are set out in the Annexure to the Directors’ Report. directors: Mr. b. eMPLoYee stocK oPtioN scHeMe: During the year under review 33. aUditors: The Audit Committee of the Board of Directors of the Company has recommended the re-appointment of M/s Patankar & Associates. 1956. 1956 and the rules framed there under. Sanjeev Jain was appointed as an Additional Director of the Company with effect from 21st May. Sanjeev Jain together with nature of their expertise in specific functional areas and names of the Companies in which they hold office of a Director are given in the Notice convening the Annual General Meeting. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. The Company has received a Notice in writing from a member proposing the candidature of Mr.10 . He shall hold office upto the date of ensuing Annual General Meeting. Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible. 1956. Mr.770 Equity Shares of Rs. offer themselves for reappointment. d. In accordance with the provisions of Section 217(2A) of the Companies Act.332 options were granted to Employees of Company. 27. In terms of the provisions of Section 219 (1) (b) (iv) of the Companies Act. Pursuant to the Provisions of Section 260 of the Companies Act. 7.

• LED based outdoor signage has been installed at Multiplex Cinema Theatre situated at Santacruz (Mumbai). foreiGN eXcHaNGe earNiNG aNd oUtfLoW: Your Company has taken the following energy conservation measures: • Power factor is being maintained with the use of capacitor banks and Auto power factor correction meter. Bangalore 1. • All the new fittings are with CFL or energy a saver. Jaipur Crystal palm. • All operational units have implemented Planned Preventive Maintenance (PPM) program where the schedule for all the engineering and projection equipments are chalked out in advance with the PPM chart. Burdwan. coNserVatioN of eNerGY. the electrical current required for getting the desired result has reduced. Digital Timers are also used for the AHU which can precisely control the operation hours of AHU according to the schedule of Movies. a power factor improves and the Company gets rebate as may be applicable on energy bills from Electricity Distribution Companies. • Nariman point property converted into 100% digitalized format which will save approx 20% energy cost. 12.DiRectoRS’ RePoRt 11. Baroda. Annual Report 09 . Replaced 50 watt Halogen lamps with 3 watt/ 9watt Led lamps in Milan. This consumes 20% less amount of energy compared with conventional projection system. Nagpur and Nariman Point property • Introduced movement sensor in toilets and back office area. Vijayawada. Faridabad. The units like Vijayawada. • Timers are being used to optimize the operational hours of lighting and other load within the premises. . • The operation timing of HVAC system and temperature is controlled with the help of Building Management System software (BMS) at some of the units of the Company. These banks are used to neutralize the inductive current by providing capacitive current. Malleshwaram (Bangalore). Chennai. Jayanagar. Rajarhat. • Successfully installed Variable Frequency Drive (VFD) for Audi AHU motors at Nagpur2. The overall current consumption from the equipment also reduces which leads to increase life cycle of the equipments like Motors and heaters. Lucknow. As a part of PPM program the air conditioning system was overhauled and chemical dosing was used to recover the loss of ageing and reduced capacity. Vizag Beach road. tubes and other components has been reduced considerable. A benefit of the PPM program is to improve the efficiency of the machines and minimizing breakdowns. Chennai. corPorate GoVerNaNce: The Company has complied with the mandatory provisions of Corporate Governance as prescribed in Clause 49 of the Listing Agreement with the Stock Exchanges. which uses less electrical power as compared to incandescent lamps. Jaipur Space & Bangalore Multiplex which helps us to control the speed of Aircon motor as per the temperature and the occupancy. We have started energy conservation meeting for all the units so as to create awareness about the energy conservation.Jaipur Vaibhav. Milan. A separate report on Corporate Governance and Auditors’ Report thereon are included as a part of the Annual Report.10 55 Inox Leisure Ltd. tecHNoLoGY aBsorPtioN. Jaipur CP . • Auto Voltage Regulator (AVR) is installed at Pune which is maintaining constant Voltage in the said unit irrespective of any voltage fluctuation form electricity board. In effect the rate of failure of bulbs. Thane. As a result. This sensor functions upon the physical movement which helps to reduce electrical energy. It helps to optimize energy consumption for Air conditioning system. Hyderabad. • Installed digital projectors at Bharuch. Rajarhat (West Bengal) & Malleshwaram (Bangalore). Central Mall (Indore) have provided Timers for common area lightings and Signage. As a result. • Emphasizing on CFL and LED lamps in existing units and upcoming project.

sUBsidiarY: The Company does not have any Subsidiary.DiRectoRS’ RePoRt • Electric MD reduced from 900KVA to 750 KVA at Baroda. 56 Annual Report 09 . Fame India Limited shall become a subsidiary of the Company on completion of the Open Offer formalities. Hyderabad and upcoming properties are equipped with Digital Projection Technologies which has resulted into electricity saving. the foreign exchange earning and outflow is as follows: (Rs.42 10. As mentioned in paragraph 4 above. 14. acKNoWLedGeMeNt: Your Directors place on record their deep sense of appreciation for the dedicated services rendered by the employees at all levels.10 Nil 60. Inox Leisure Ltd. in Lacs) current Year (a) (b) Foreign exchange earnings Foreign exchange outflow CIF value of Capital Goods imported Travelling total 13. from 500KVA to 250KVA at Raipur from 250KVA to 200 KVA at Bharuch. on behalf of the Board of directors Place: Mumbai date:21st May 2010 Pavan Jain director Vivek Jain director 250. Your Directors express their gratitude for the valuable co-operation and continued support extended by the Company’s bankers.10 . based on the legal advice received by the Company.23 60. enabling the Company to achieve a satisfactory performance during the year under review.10 Nil Previous Year Nil Your Company continues to use the latest technology for giving high quality viewing experience to the patrons. business associates and investors.81 261. Pune. • Multiplex Cinema Theatre situated at Nariman Point.

senior managerial personal 33332 any other employee who receives a grant in any one Details of employees with 5% or more options year of option amounting to 5% or more of option No Name granted during that year Mr.332 15 28. 12 of above guideline. 2010) pursuant to issue of shares on exercise of option calculated in accordance with (AS) 20 ‘Earnings per Share’ 4.54 Lacs. . page II.54 Lacs. 1999 (Format as given in SEBI manual. would have been lower by Rs. identified employees who were granted option. computed and ECC shall have been recognized if it had Impact of the difference on the Profit: Profit After Tax used the fair value of the options. equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant k Diluted Earnings Per Share (EPS) (as on 31st March.510 NOT APPLICABLE NIL 91. 0.10 57 Inox Leisure Ltd. Annual Report 09 .1061) A B C D E F G H I J Options granted The price formula / Exercise Price Options vested Options exercised The total number of shares arising as a result of exercise of option Options lapsed Variation of terms of options Money realized by exercise of option Total number of options in force Employee-wise details of options granted to i. difference between ECC so Rs. 0. Nil during any one year. point no.112 iii. ii. 0.890 27.24 L If employee compensation cost calculated using intrinsic Difference in ECC: The ECC would have been higher by value of the stock options.01 each.770 4. Impact of this difference on profits and on EPS of the Impact on EPS: EPS would have been lower by less than company Rs.770 27.DiRectoRS’ RePoRt annexure “a” Information required to be disclosed under SEBI (ESOS & ESPS) Guidelines. Harshavardhan Gangurde 20000 Captain Virendra Marya 13332 33.

5 years 64.64% to 7.5 to 4. risk-free interest rate expected life 5. including following weighted-average infoi.10 . 56.25 time of option grant Inox Leisure Ltd.36% 1.01 For options granted on 27th October 2009 – Rs. 153. 58 Annual Report 09 .91 n Method and significant assumptions used during the year to estimate fair values of options. expected volatility iv. expected dividends.80% 0. 43. and v.M For options whose exercise price either equals or exceeds or is less than the market price of the stock.24% to 69.71% iii. ii. the price of the underlying share in market at the Rs. 15 is less than the granted on 29th market price January 2007 – Rs. disclose weighted-average exercise prices and weighted-average fair values of options separately Weighted Weighted Average Exercise Average Fair Price Value Exercise price Nil Nil equals market price Exercise price Nil Nil exceeds market price For options Exercise price Rs.

there is a spurt in installing 3D screens in India not only in cities like Mumbai. Multiplexes have ensured that the exhibition industry is today a very valuable part of a films value chain. Increased multiplex penetration in regional markets is also expected to bolster the regional film industry which has a tremendous growth potential. is the most prolific and rapidly expanding industry which saw a phenomenal growth from 2008 to 2009. the producer-distributor impasse and events like the IPL. high entertainment taxes and the relative lack of multiplex penetration are the key factors that explain this gap. multiplex chains charting out an aggressive expansion roadmap. increasing digitalization of screens enabling wider film print releases. There were 242 Hindi films ( nearly 140 mainstream Hindi movies) released in 2009 as against 229 released in the previous year. corporates. The 3D experience is still a novelty for Indian audiences and the success of Avatar has paved the way for 3D cinema in India. riding on which. the industry is expected to be back on its expansion path. The 3D version of Avatar garnered 80% of its gross box office collection as compared to its 2D version. Chennai and Hyderabad but also in smaller centres like Coimbatore. With their target audience matching the urban and upwardly mobile audience profile of multiplexes. and are the preferred out-of-home choice of entertainment for the Indian consumer. Jaipur and Ahmedabad. the long term multiplex story is still robust and the number of screens in India shall continue to grow. Lower admission prices. with a growth rate of 12. but even with these revenue streams. With a robust pipeline of big-budget. nothing boosts confidence as a box office hit does. opportunities. The growing popularity of alternate distribution platforms like DTH. Over the last year and half. music. the industry is expected to reach a whopping size of INR 1091 billion by 2014.5 billion tickets sold annually in the US. The report suggests that the dream run will continue to grow at a CAGR of 9% to reach the size of 137 billion by 2014. as compared to 1. Kolkata. surge in overseas box-office collections. This has opened up a whole new vista of growth with producers experimenting on creative and offbeat projects rather than following the beaten track. Emerging technologies like digital cinema and 3D have provided exhibitors with the opportunity to garner additional revenues through alternate content offerings like screening of live cricket matches. increasing popularity of home video segment are some of the major drivers of growth. Despite these staggering numbers. The shelf life of movies in theatres has seen a steady decline. Delhi. Adding to the woes was the socio-political turmoil with the ominous shadow of terrorism looming large over the nation. DVD and ringtone rights. However. With a projected Compound Average Growth Rate( CAGR) of 13% over the next five years. Kerala. Indian cinema trails its Hollywood counterpart in overall revenues. The Indian Media and Entertainment (M&E) industry being one of the sunshine sectors. Multiplexes are also playing a crucial role in the increasing interest of the corporate sector in the business of cinema. Also the Box office contributes to as much as 74% of a films business and almost 50% of that comes from multiplexes. The total annual theatrical admissions in Indian cinemas are around 3 billion.4%. Bangalore. as per FICCI-KPMG Report 2010. slow down in the real estate sector has led to the expansion plans put temporarily on the backburner. the Indian Media and Entertainment (M&E) industry too hit a roadblock with the flagging morale of the audience and a considerably lackluster movie-lineup. . satellite television and the launch of 3G enabled mobile handsets are a potential threat to theatrical exhibition. risks and concerns: Multiplexes have been successful in bringing the audience back to cinema theatres.10 59 Inox Leisure Ltd. Piracy continues to be a major concern for the film industry. But in the face of the challenging economic slowdown last year.MaNageMeNt DiScuSSioN aND aNalySiS industry structure and developments The Indian Film Industry is one of the largest in the world. in order to grab mindshare and generate maximum brand visibility are investing in meaningful and niche films. Pune. Amritsar. With the release of Avatar. Technological advancements such as digitalization of film content and delivery should help arrest piracy to a great extent. The filmed entertainment sector particularly is on a roll as the Indian audiences are known for their passion for cinema. A producer may make his profits by selling the satellite. threats. Annual Report 09 . distribution. However the industry has successfully managed to tide over the storm and is now showing signs of stabilising its growth. star-studded films.

entertainment. segment wise analysis Multiplexes / film exhibition Total revenue from theatrical exhibition segment during the financial year ended 31st March 2010 amounted to Rs. The Audit Committee reviews the reports submitted by the Internal Auditors and monitors follow-up and corrective action by Management. 140.08 Lacs. The profit from this Segment was Rs. Bangalore.21 Lacs. industrial relations With our fair management practices across the board we ensure a congenial work environment and a good quality of work life. we continuously maintain a strategic competitive advantage for sustaining long term business objectives. B. The total revenue and profit from this segment was Rs. 19.65 Lacs for the financial year ended 31st March 2010. c. transactions are authorized. 82. However. Power The Company has set up wind mills in the State of Gujarat primarily for the purpose of generating electricity for its captive consumption.400 Lacs during the financial year ended 31st March 2010. 3D screens have been installed in a number of properties including Mumbai. the Company suffered a loss to the tune of Rs.28. 2057. discussion of financial performance with respect to operational performance The Company’s financial performance is discussed under the head “Financial Results” in Directors’ Report to the Members. Inox Leisure Ltd. 25. Pune. The Current employee strength is around 2500. the Company has 34 multiplexes. training & development Our employees continue to be our most valuable assets. We thrive upon the quality of our highly “Systems and Service” oriented work culture to achieve and maintain consistently high service standards. aviation.45 Lacs for the financial year ended 31st March 2010.MaNageMeNt DiScuSSioN aND aNalySiS Controlled ticket rates in some of the states and high entertainment taxes make it difficult to keep pace with increasing rentals. Our constructive and progressive management style enables us to attract and retain the best talent in the industry. 129 screens in 23 cities across India. Material developments in Human resources: a.88 Lacs respectively. retail. Kolkata and Hyderabad which has also contributed to the increase in total revenue. film Production Total revenue from Film production was Rs. The profit from this segment was Rs.10 .37 Lacs for the financial year ended 31st March 2010.53 Lacs and Rs. Thus. 22. recruitment & selection We develop and maintain our talent pool by recruiting from diverse service sectors like hotels. 60 Annual Report 09 .360. Allowing markets to determine the ticket rates would provide more flexibility to the exhibitors. codes of conducts and corporate policies are duly complied with. internal control systems and their adequacy The Company has an adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded. recorded and reported properly and applicable statues. for the financial year ended 31st March 2010. As on date. media and management schools. The increase in total revenue from this segment is attributed to commencement of operations of new properties across the country. Our professional and successful management team is drawn from the above backgrounds. film distribution Total revenue from film distribution during the financial year ended 31st March 2010 amounted to Rs.

The composition of the Board of Directors. their positions.coRPoRate goveRNaNce RePoRt 1. Haigreve Non-Executive Independent 5 No 15 9 Khaitan Director Mr. The details of the Board of Directors. 21st May. There is no Chairman of the Company. attendance record. 2. . of Board Whether No. Board of directors: The Board of your Company comprises of six Directors and all of them are Non-Executive Directors having considerable experience in their respective fields. a brief statement on the company’s philosophy on code of Governance: Corporate Governance is the system by which Companies are directed and controlled by the management in the best interest of the Shareholders and others. namely a) c) b) Share Transfer & Investor’s Grievance Committee Annual Report 09 . Siddharth Jain Non-Executive Director 6 No 5 1 Mr. your Company has initiated significant measures for compliance with Corporate Governance. 22nd January. Sanjeev Jain has been appointed as an Additional Director of the Company at the Meeting of the Board of Directors’ held on 21st May 2010. Vimal Mittal Non-Executive Independent 6 Director No 5 4(3) Mr. 2009. 3. Vivek Jain Non-Executive Director 6 No 5 4 Mr. With this belief.10 61 Inox Leisure Ltd. 2009. of Member director meetings attended directorships (chairman) of attended last aGM in other other Board companies* committees** Mr. the company has three Board-level committees. Audit Committee Compensation Committee ** Other Committee means Audit Committee and Shareholder’s Grievance Committee. Sanjeev Jain # Non-Executive Independent 2 NIL Director * # Excluding private limited companies and company in which Director is alternate Director Mr. 27th October. 3rd February 2010 and 5th February 2010. Your Company held Six Board Meetings during the year on. ensuring greater transparency and better and timely financial reporting. 2010. Corporate Governance therefore generates long term economic value for its Shareholders. 2009. 31st July. other Directorships (excluding private limited and foreign companies and alternate Directorships) and the membership of other Board Committees as on 31st March. Deepak Asher Non-Executive Director 6 Yes 5 1 Mr. with reference to the number of Executive and Non-Executive Directors. meets the requirements of Clause 49 of the Listing Agreements with the Stock Exchanges. Pavan Jain Non-Executive Director 5 No 6 3(2) Mr. Your Company believes that the implementation of Corporate Governance principles generates public confidence in the corporate system. 2010 are as under:Name of Position No.

As on 31st March 2010.e. The terms of reference for the Audit Committee are in accordance with Clause 49 of the Listing Agreement. Vimal Mittal has ceased to be the Chairman of the Committee w. transmissions. Haigreve Khaitan Mr. splitting. Vimal Mittal * Mr. Four Meetings of the Committee were held on 21st May.f. 31st July. The Committee approves and monitors transfers. composition of the committee together with the meetings held and attendance is as follows: Name of director Position committee Meetings Number of Meetings held during the year attended Mr. your Company received 18 complaints from investors. Vimal Mittal. 62 Annual Report 09 . 2009. 21st May 2010.10 . 2009. The Committee specifically looks into the redressal of Shareholders’ and investors’ complaints such as transfer of shares. dematerialization.coRPoRate goveRNaNce RePoRt a. During the year ended 31st March 2010. Vivek Jain Member 3 0 Mr. The Company Secretary acts as the Secretary to the Committee. non receipt of shares.f. audit committee: The Audit Committee comprises of Four Non-Executive Directors with Mr.f. Company Secretary and Vice President . Deepak Asher Mr. and to ensure their expeditious disposal. Chairman of the Audit Committee. 2009. was unable to attend the Annual General Meeting held on 29th June 2009 due to unavoidable circumstances. 22nd January. etc. compensation committee: Your Company has formed a Compensation Committee which consists of majority of independent Directors. The complaints were mainly in respect of non receipt of Electronic Credits / Non receipt of Dividend /non receipt of Annual Report. 21st May 2010. Mr. issue of duplicate shares. Mr. Sanjeev Jain** * Member Member Member Chairman 4 4 4 4 4 4 4 - Ceases to be a Chairman of the Committee w. Pavan Jain Chairman 3 3 Mr. composition of the committee together with the meetings held and attendance is as follows: Name of director Position committee Meetings Number of Meetings held during the year attended Mr. c. a total of 2250 equity shares remained in the in-transit account with National Securities Depository Limited / Central Depository Services Limited. Inox Leisure Ltd. 2010. Deepak Asher Member 3 3 Mr. re-materialization. non receipt of IPO refund orders. During the year under review.Legal acts as a Compliance Officer. Parte. ** Appointed as a Member and designated as a Chairman w. Sanjeev Jain as the Chairman of the Committee w. non receipt of dividend. Rajesh D. All the complaints were resolved / replied. 21st May 2010. a non-executive Director of your Company. consolidation of shares.e. etc. b. Pavan Jain.e. 27th October.e. share transfer & investors’ Grievance committee: Your Company has formed a Share Transfer & Investors’ Grievance Committee under the Chairmanship of Mr. 21st May 2010.f.

Vadodara – 390 of Memorandum of Association 007 of the Company.5. 18/19. 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations. 1995 by any employee. Alteration of the Object Clause 2007 at 3. Sanjeev Jain** Non-executive. ** Appointed as a Member and designated as a Chairman w. Hotel Express Residency. 3 3 Independent. To frame suitable policies and system to ensure that there is no violation of SEBI (Insider Trading) Regulations. remuneration to directors: All the Directors of your Company are non-executive directors and are not entitled to any remuneration except sitting fees @ Rs.e.10 63 Inox Leisure Ltd. Vimal Mittal 30000 20000 15000 65000 Mr. Deepak Asher Non-executive.f. Pavan Jain 25000 15000 40000 Mr. Member Mr. Vivek Jain 30000 30000 Mr. Member Mr. 21st May 2010. Haigreve Khaitan Non-executive.coRPoRate goveRNaNce RePoRt The Terms of Reference of Compensation Committee inter alia includes: Implementation. Composition of the Compensation Committee together with the meeting held and attendance is as follows: Name of director Position committee Meetings Number of Meetings held during the year attended Mr.e. Haigreve Khaitan 25000 20000 15000 60000 5 General Body Meetings: The particulars of the last three Annual General Meetings (AGM) of your Company are given hereunder: Year 2006-07 date and time Venue special resolution Passed 8th AGM on 28th September.f. Siddharth Jain 30000 30000 Mr. . Share Transfer & Investors Grievance Committee Meetings and Compensation Committee Meetings. Deepak Asher 30000 20000 15000 15000 80000 Mr.m. Chairman * Ceases to be a Chairman of the Committee w.000 per meeting for attending the Board Meetings. 3 Independent. Vimal Mittal* Non-executive. Maple Hall. Annual Report 09 . 4. Alkapuri Society. Audit Committee Meetings. The details of sitting fees paid to the NonExecutive Directors for the year 2009-10 are given below: Name of director Board Meeting audit share transfer compensation total sitting fees committee committee committee Meeting Meeting Meeting sitting fees sitting fees sitting fees Mr. Member 3 3 Mr. administration and superintendence of the ESOP Scheme and formulate the detailed Terms & Conditions of the ESOP Scheme.00 p. 21st May 2010. 3 3 Independent.

Alkapuri Society. Alkapuri Society. National Stock Exchange of India Limited 64 Inox Leisure Ltd. The said results were also posted on your Company’s website viz. no ordinary or special resolution was passed by your Company’s Shareholders through postal ballot. 2010. Vadodara – 390 007 10th AGM on 29th June. Vadodara financial year: 31st March. Alkapuri Society. 18/19.inoxmovies.Finance in respect of matters stated in Clause 49 (V) of the Listing Agreement. 6. 7. b) Materially significant related party transactions: There are no pecuniary related party transactions that may have potential conflict with the interest of your Company at large. Annual Report 09 .m. e) CEO/CFO Certification: Your Company has obtained a certificate from Manager & Chief Executive Officer and Vice President . Vadodara – 390 007 2008-09 During the year ended 31st March.m. Maple Hall. Hotel Express Residency. strictures imposed on your Company by Stock Exchange or SEBI or any statutory authority.10 . 18/19. on any matter related to capital markets. Means of communication: The quarterly / annual financial results of your Company during / for the year ended 31st March 2010 were sent to the Stock Exchanges immediately after they were taken on record by the Board and published in well-circulated Gujarati and English dailies as well. 2009 at 11.com. other disclosures: a) Details of non-compliance: During the last three years. 2010 Book closure dates: 2nd July2010 to 9th July 2010 (both days inclusive) Listing on stock exchanges: 1. d) Management Discussion and Analysis Report: Management Discussion and Analysis Report is set out in a separate section of this Annual Report and forms a part of this Report. penalties.00 a. Nil 2008 at 3. General shareholder information: aGM: Date: Time: Venue: 9th July. Hotel Express Residency.00 a. All related party transactions are disclosed in the financial statements. 18/19. c) Disclosure about Directors being appointed / re-appointed: The brief resume and other information required to be disclosed under this section is provided in the Notice of the Annual General Meeting. 2010 11. Maple Hall. 8.00 p. Maple Hall.: www.coRPoRate goveRNaNce RePoRt 2007-08 9th AGM on 19th September. there were no instances of non-compliance. Hotel Express Residency.m.

70 October’ 09 65. Dalal Street. Plot No.50 50.67 10227370 1.30 32.15 November’ 09 62.77 and as on 31st March.80 64. Vittal Rao Nagar.32 53054078 TOTAL 44022 100.31 1022737 100001 & Above 140 0.34 4079811 5001 . 62.00 50.25 August 09 61.20 417080 50001 . of % to total No.coRPoRate goveRNaNce RePoRt Exchange Plaza. Hyderabad – 500 081 Distribution of Shareholding & Shareholding Pattern: distribution of shareholding as on 31st March.95 75.50000 88 0. investors may contact your Company’s Registrar and Transfer Agent at the following address: Karvy computershare Private Limited Plot No.40 91.20000 705 1.527.85 and as on 31st March.8 (+125.40 65. 27.80 61.00 48.77 5547250 0.49%) registrar and transfer agents: For lodgment of transfer deeds and other documents or any grievances / complaints.00 September’ 09 67.72 618955480 100.30000 219 0.30 March’ 10 75. Bandra Kurla Complex.90 52.00 65.48 1274939 10001 .100000 136 0. 2010 is as follows: shareholding of nominal No.25 396602 40001 .00 stock code National Stock Exchange of India Limited Bombay Stock Exchange Limited Market Price Data: High. Bombay Stock Exchange Limited Jeejeebhoy Towers.95 67.10 December’ 09 68. Madhopur.10 49. .60 56.77 (79.65 530540780 85.05 65.90 37.45 66.75 26.30 68.70 February’ 10 92.10000 1534 3.40 48. 2010 the closing BSE Sensex was 17.60 32. Mumbai – 400001 iNoXLeisUr iNoXLeisUr / 532706 Bse Low 41. 2009 the opening BSE Sensex was 9.85%).05 May’ 09 64. 17 -24.40000 110 0.40 July’ 09 50.30 37.59 12749390 2.80 88. of shares value shareholders 1 .90 3966020 0. On 1st April. 2010 closing price on BSE was Rs.60 1095576 20001 .50 554725 30001 .10 65 amount in % to total rupees 40798110 6.70 Bse Low 26.10 50.00 50.70 71.85 50.30 As on 1st April.745.00 Inox Leisure Ltd.00 42.00 42. the Opening price of the Company’s Share on BSE was Rs.5000 41090 93. Low during each month in last financial year Month Nse Nse Low Low April’ 09 41.00 61895548 Annual Report 09 . G Block. C/1.00 June’ 09 72.55 55. Bandra (East).35 62. 2009.64 4170800 0.10 January’ 10 88. Mumbai – 400051 2.80 65.90 55.90 60.06 10955760 1.

50.21% of the equity shares of your Company are in dematerialized form.000 shares are held jointly with Mr.24% 0. Deepak Asher * No. *** Out of these 100 equity shares are held as nominee of Gujarat Fluorochemicals Limited. of shares Held 41329512 41329512 Percentage of shareholding 66. Vivek Kumar Jain Mr. Siddharth Jain.43% 11.460 equity shares are held as Trustee of “Inox Leisure Limited – Employees Welfare Trust”.Clearing Members Sub-Total Grand Total Dematerialization of shares and liquidity: Your Company’s equity shares are traded compulsorily in dematerialized form.FIIs Sub-Total Others Bodies Corporate Indian Public NRIs / OCBs Any other . Property Locations: The Multiplex Cinema Theatres of your Company are situated at the following places: Inox Leisure Ltd. Pavan Kumar Jain Mr.00. Shareholding Pattern as on 31-March-10 category Promoter’s holding .45% 31.01. of shares as on 31st March 2010 * 16.65% 0.100 *** 25. ** Out of these 100 equity shares are held as nominee of Gujarat Fluorochemicals Limited and 6.Trusts .80% 18.77% 20658 864170 884828 7306378 11287194 401054 406223 280359 19681208 61895548 0.100 Out of these shares 4. 100 equity shares are held as nominee of Gujarat Fluorochemicals Limited and 6.03% 1. ISIN number for dematerialization of the equity shares of your Company is INE312H01016.66% 0.560 ** 12.10 . Financial Institutions .00% Annual Report 09 .Banks.Indian Promoters Sub-Total Non-Promoters Holding Institutional Investors . outstanding Gdrs/adrs/Warrants: Your Company has not issued GDRs/ADRs/Warrants or any convertible instruments.77% 66.80% 100.51. Devansh Jain.00. 66 No.coRPoRate goveRNaNce RePoRt Particulars of shares held by Non-Executive Directors Name of the director Mr.40% 1. Approximately 34.000 shares are held jointly with Mr.

Chennai City Plaza. Malleshwaram. Hyderabad – 500 034 5th Floor. City Centre New Town Mall. Gomti Nagar. Kolkata – 700 157 4th Floor. Jayanagar. city 1 Pune 2 Vadodara 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Kolkata Kolkata Goa Mumbai Bangalore Jaipur Indore Darjeeling Kota Nagpur Chennai Jaipur Bharuch Durgapur Jaipur Lucknow Raipur Mumbai Kolkata Vijayawada Faridabad Nagpur Tuli Mall Bangalore Burdwan Hyderabad Siliguri Rajarhath Indore 2 Thane Vizag 1 Vizag 2* Bangalore* Location Plot No.coRPoRate goveRNaNce RePoRt sr. Magrath Road. 3rd Mile. No. Vipin Khand. Riverside Mall. Siliguri 734401 3rd Floor. (*) Commenced operations after 31st March 2010 address for correspondence: registered office: ABS Towers. Indore 452 001 3rd Floor. Delhi Mathura Road. Rama Krishna Beach Road. R. 2nd Floor. Indra Vihar. Eastern Express Highway. Bund Garden Road. Road. Near Kalyani Hospital. G. Forum. Korum Mall. City Mall 36. Faridabad Jaswant Tuli Mall. Rajarhat. Bangalore. Maddilapalem. Kolkata Urvashi Theatre Complex. Race Course. Raipur 2nd Floor. Marg. Shree Garuda Swagath Mall. 67. Kolkata. Bajaj Bhavan. Mylapore. Salai. Santacruz (W). Regal Square. B.N. Vadodara. 10/11. Thane (West) – 400 606 Survey No. 60. E. DC Block 1. 19. Bani Park. Visakhapatnam 3rd Floor. B.Sec-35. Mantri Square. Sneha Nagar. Sevoke Road. Near Cadbury Compound. Vardhaman nagar. GVK One Mall. Indora Chowk. Kolkata. Vaishali Nagar. Campal. New Town. Road No. Sector 1. Milan Mall. Gujarat Dream Plex. CMR Mall. Jhotwara Road. Mangal Pandey Road. Jaipur 4th Floor. D. Panaji. Orbit Mall. D. CR2. Mumbai. R. Burdwan 5th Floor. Indore Central. Gopal Baug. Elgin Road. Durgapur 4th Floor. Vijayawada 3rd Floor. Zadeshwar Road. Road. Bharuch.10 Inox Leisure Ltd. 4th Floor. Ellora Park. No. Old Padra Road. Tilak Nagar Main Road. Vadodara – 390 007 67 Annual Report 09 . Nagpur 3rd floor. (West Bengal) Plot No. Maharanipet. 170. Pune. Amrapali Circle. Sapna Sangeeta Road. Near Milan Subway. Sampige Road. . Jaipur Rajashtan Shree Rang Palace. Lucknow 3rd Floor. Bangalore 4th Floor. Sahkar Circle Scheme. Gandhi Nagar. Crown Interiorz Mall. Indore. 1. City Centre.K. Old GMC Heritage Precinct. 10 / 3. Laden La Road. Kamptee Road. NH-6.B Ghosh Road. Goa. Garuda Mall. Near Hotel Central Park. BSIDL Building. Opp. Visakhapatnam Survey No. Opposite Water Tank. Crystal Palm. Rink Mall.Nirman Marg. Andhra Ratna Road. Banjara Hills.1. Chennai City center.T. Burdhwan Arcade. Nariman Point. Sapna Sangeeta Mall. Jaipur. Nagpur 4th Floor. Moulana Abul Kalam Azad Sarani. Sardar Patel Marg. Sp 11. 120 & 121. . Darjeeling. Kota Poonam Mall. Mumbai 89C.

We state that in respect of investor grievances received during the year ended 31st March 2010.: 40626999 Email Address: investors@inox. the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement in all material respects except that the Chairman of the audit committee had not attended the Annual General Meeting of the Company for the reasons mentioned in paragraph 3(a) of the Corporate Governance Report. The Code of Conduct is available on the website of your Company. All Board Members and senior management personnel have affirmed compliance with the Code of Conduct. For Patankar & Associates Chartered Accountants. Viraj Towers. Our examination was limited to procedures and implementation thereof. no investor grievances are pending against the Company. No.: 4062 6900 Fax No. this is to confirm that all the Members of the Board and senior management have affirmed compliance with the Code of Conduct for the year ended 31. as per the explanations given to us.2010 Place: Mumbai Date: 21st May 2010 Alok Tandon Chief Executive Officer auditors’ certificate on corporate Governance To the Members of Inox Leisure Limited We have examined the compliance of the conditions of Corporate Governance by Inox Leisure Limited for the year ended on 31st March 2010 as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. Mumbai . . code of conduct: Company’s Board has laid down a Code of Conduct for all Board Members and senior management of your Company. Next to Andheri Flyover. It is neither an audit nor an expression of opinion on the financial statements of the Company. No. Compliance with the conditions of Corporate Governance is the responsibility of the Company’s management.coRPoRate goveRNaNce RePoRt corporate office: 5th floor. In our opinion and to the best of our information.co.in Listing fees: Your Company has paid the annual listing fees for the financial year 2010-11 to the NSE and BSE on which the securities are listed. adopted by the Company to ensure the compliance of the conditions of the Corporate Governance. Place: Pune Dated: 21st May 2010 68 Sanjay Agrawal Partner Mem.3.400 093 Phone No. 107628W Annual Report 09 . declaration by the ceo: As provided under Clause 49 of the Listing Agreement with the Stock Exchanges. Western Express Highway. 9.10 Inox Leisure Ltd. 49051 Firm Reg. Andheri (E).

1956. as at 31st March. (vi) In our opinion and to the best of our information and according to the explanations given to us. As required by the Companies (Auditors Report) Order. and Inox Leisure Ltd. (ii) In our opinion.auDitoRS’ RePoRt to tHe MeMBers of iNoX LeisUre LiMited 1. An audit also includes assessing the accounting principles used and significant estimates made by management. 49051 Firm Reg No. (v) On the basis of written representations received from the directors. read with the notes thereon. 4. in the case of Cash Flow Statement. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. and taken on record by the Board of Directors. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) c) in the case of the Balance Sheet. 1956. An audit includes examining. we report that: (i) We have obtained all the information and explanations. We have audited the attached Balance Sheet of Inox Leisure Limited. we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. we report that none of the directors is disqualified as on 31st March. 1956. We conducted our audit in accordance with auditing standards generally accepted in India. 3. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. the said accounts. . b) in the case of the Profit and Loss Account. on a test basis. as on 31st March. 2003 issued by the Central Government of India in terms of subsection (4A) of section 227 of the Companies Act. (iv) In our opinion. proper books of account as required by law have been kept by the company so far as appears from our examination of those books. evidence supporting the amounts and disclosures in the financial statements. Further to our comments in the Annexure referred to above. the Balance Sheet. of the profit for the year ended on that date. 2010. 2010 Annual Report 09 . 2010. For Patankar & Associates Chartered Accountants (S S Agrawal) Partner Mem. Our responsibility is to express an opinion on these financial statements based on our audit. We believe that our audit provides a reasonable basis for our opinion. Profit Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. as well as evaluating the overall financial statement presentation. 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. No. of the state of affairs of the Company as at 31st March. 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. (iii) The Balance Sheet. of the cash flows for the year ended on that date. These financial statements are the responsibility of the Company’s management. which to the best of our knowledge and belief were necessary for the purposes of our audit. give the information required by the Companies Act. 1956. 107628W Place : Pune dated: 21st May.10 69 2.

1956. 13700 lacs and the year end balance of the loans taken is Rs. In our opinion. The Company is regular in repayment of principle and payment of interest and there are no overdue amounts in respect of these loans. In our opinion. the transactions that need to be entered into the register maintained under section 301 of the Companies Act. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies have been noticed on such verification. In our opinion. Income-tax. 2003 are not applicable to the Company. In our opinion. 9. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. 2010. During the course of our audit. 4. the rate of interest and other terms and conditions on which these loans were taken are not prima-facie prejudicial to the interest of the Company. Service-tax. Customs Duty. The Company has not accepted any deposits from the public within the meaning of Section 58A. 2. to the best of our knowledge and belief. Inox Leisure Ltd. The maximum amount involved during the year is Rs. 3. Wealth-tax. no comparison of prices could be made available as these legal services are of special nature. Entertainment 70 5. 6. Cess. In our opinion. Employees’ State Insurance. Sales-tax.auDitoRS’ RePoRt aNNeXUre referred to iN ParaGraPH 3 of tHe aUditors’ rePort to tHe MeMBers of iNoX LeisUre LiMited oN tHe accoUNts for tHe Year eNded 31st MarcH. 8. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for maintenance of cost records under section 209(1)(d) of the Companies Act. 7. Fixed assets disposed of during the year were not substantial and therefore do not affect the going concern assumption.10 . The Company has not granted any loan. 12700 lacs. 2003. on the basis of information and explanation given to us and the books and records examined by us in the normal course of audit and such checks as we considered appropriate. 1956. In our opinion. the Company has an internal audit system commensurate with the size and nature of its business. 1956 have been so entered. The Company has taken loans from two companies covered in the register maintained under section 301 of the Companies Act. 1956 and exceeding value of rupees five lakhs in respect of any party during the year. materials and services with parties covered in the register maintained under section 301 of the Companies Act. and sale of goods. 58AA or any other relevant provisions of the Companies Act. In term of the Companies (Auditors Report) Order. and are of the opinion that. Annual Report 09 . secured or unsecured. Inventories were physically verified by the management at reasonable intervals during the year. The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund. the prescribed accounts and records have been made and maintained. we state as under: 1. to the parties covered in the register maintained under section 301 of the Companies Act. 1956. the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records. there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of inventory and fixed assets and for sales and services. prima facie. no major weakness has been noticed in the internal control systems in respect of these areas. 1956 and the Rules framed thereunder and hence the provisions of clause 4(vi) of the Companies (Auditor’s Report) Order. In our opinion. for purchase of services made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 for activities of the Company to which the said Rules are made applicable. There were no transaction of purchase of goods and materials.

14. The Company has invested in shares and other securities in the course of its investment activity. in our opinion. except as mentioned in the Schedule 7: Investments in the Balance Sheet. 1956. 13.auDitoRS’ RePoRt Tax and other material statutory dues applicable to it. 107628W Place : Pune dated : 21st May. 20. 19. Wealth-tax. The Company does not have accumulated losses and the Company has not incurred cash losses during the current year and in the immediately preceding financial year. There are no debentures issued and outstanding during the year and hence the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order. 2010 Annual Report 09 . Service-tax. The Company has not defaulted in repayment of dues to banks. In our opinion. 11. for a period of more than six months from the date they became payable. income Mumbai 10. 15. No fraud on or by the Company was noticed or reported during the course of our audit. Therefore. the funds raised on short-term basis have not been used for long term investments. which have not been deposited on account of disputes are as under: Name of the statute Nature of dues and the period amount (rs. In our opinion. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. 21. 2003 are not applicable to the Company. the term loans availed during the year by the Company were applied for the purpose for which they were raised other than amounts pending utilization of the funds intended to be used in the projects under implementation. Sales-tax. The Company has not granted loans and advances on the basis of security by way of pledge of shares. Excise Duty or Cess.10 71 Inox Leisure Ltd. The Company has not given any guarantee for the loans taken by others from banks or financial institution. Sales-tax. Excise Duty and Cess were in arrears. Customs Duty. 18. 17. No undisputed amounts payable in respect of Income-tax. Service tax. No. For Patankar & Associates. 2003 are not applicable to the Company. Chartered Accountants. 49051 Firm Reg No. . proper records have been maintained of the transactions and timely entries have been made therein. Particulars of dues of Income-tax. The investments are held by the Company in its own name. (S S Agrawal) Partner Mem. 16.56 Commissioner of Service-tax. 12. During the year the Company has not made any preferential allotment of shares to parties covered in the register maintained under section 301 of the Companies Act. Customs Duty. in lacs) forum where dispute is to which the amount relates pending Service-tax Levy of service tax on certain 48. The Company has not raised any money by way of public issues during the year. as at the end of the year. No payments were due in respect of Investors Education and Protection Fund and Excise Duty. temporarily kept in fixed deposit with banks. On an overall examination of the balance sheet and the cash flow statement. The Company is not a chit fund or a nidhi/mutual benefit fund/society. Wealth-tax. debentures or other securities.

54 82.832.80 232.09 .269.604.559.886.52 195. S.656.20 5.02 24.62 31.666.82 1.41 78.015.94 162.39 4.848.12 34.387.72 2.279.100.490. Loans and Advances (a) Inventories (b) Sundry Debtors (c) Cash and Bank balances (d) Interest Accrued (e) Loans and advances Sub-Total (i) (ii) Less : Current Liabilities and Provisions (a) Current liabilities (b) Provisions Sub-Total (ii) Net Current Assets (i .149.755. 2009 Rs. in lacs 1 2 6.065.91 13.091.41 22.09 12 13 18 Pavan Jain Director Deepak Asher Director Inox Leisure Ltd. in lacs As at 31st March.BALANCE SHEET AS AT 31ST MARCH.375.536. Annual Report 08 .118.74 645. 2010 Rajesh D. 2010 Schedule I SOURCES OF FUNDS 1 Shareholders' Funds (a) Capital (b) Employee Stock Options Outstanding (c) Reserves & Surplus 2 Loan Funds (a) Secured Loans (b) Unsecured Loans As at 31st March.349. Parte Company Secretary & Vice President .48 28.54 4.61 290.77 31.213.95 5.215.473.934.19 8.95 8.279.00 18.63 103.94 34.31 1.92 1.33 12.84 31.71 33.2010 72 3 5 6 7 8 9 10 11 38.993.863.00 4.34 896.12 32.93 6.929.049.10 4.06 6.55 33.21 54.978.18 51.91 274.79 629.700.01 28.993.146.465.00 6. Agrawal Partner Place : Pune Dated : 21st May. 2010 Rs.30 9.17 2.30 68.431.ii) TOTAL Notes forming part of accounts As per our report of even date attached For Patankar and Associates Chartered Accountants S.489.387.78 3.71 6.36 1.47 1.24 51.05 2.33 1.10 5.09 3 4 Deferred Tax Liability (Net) TOTAL II APPLICATION OF FUNDS 1 Fixed Assets (a) Gross block (b) Less: Depreciation & Amortization (c) Net block (d) Capital work-in-progress (e) Advances on Capital Account (f) Pre-operative expenditure pending allocation 2 3 Investments (i) Current Assets.102.946.629.Legal Place : Mumbai Dated : 21st May.

811.69 363.PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH.39 529.Legal Place : Mumbai Dated : 21st May.650.183.209. 2010 Rajesh D.73 1.24 40.434. in lacs 22.24 18 For the year ended 31st March.989.03 2.654.798.86 1.76 3.447.344.24 4. . 2009 Rs. S.308.5(a) in Notes to Accounts Profit for the year Add: Balance brought forward Balance carried to the Balance Sheet Earnings Per Equity Share of Rs.59 4. 2010 Schedule INCOME Sales & Services Other Income Total EXPENDITURE Entertainment tax Film Distributors Share Cost of Food and Beverages Operating and other Expenses Interest Depreciation & Amortization Profit Before Tax Provision for Taxation for the year Current tax MAT Credit Entitlement Deferred tax Fringe Benefit tax Profit After Tax Add/(Less) : Taxation in respect of earlier years Prior Period Taxation MAT Credit Entitlement for earlier years .45 23.19 1.01 5.83 3.62 2.05 197.577.542.see note no. 10 each Basic Diluted Notes forming part of Accounts As per our report of even date attached For Patankar and Associates Chartered Accountants S.04 447.84 225.63 2. 2010 Rs.022.40 6. Parte Company Secretary & Vice President .605.75 3.see note no.60 20.69 1.838.364.87 1. Agrawal Partner Place : Pune Dated : 21st May.788.167. in lacs 25.44 335.143.00 (292.87 1.611.96 3.75 (12.97 1.590.00 334.00 192.25 20.577.00 599.368.42 1.96 14 15 16 17 5 Annual Report 08 .68 246.93 10.536.00) 320.2010 Pavan Jain Director Deepak Asher Director For the year ended 31st March.83 6.62) 978.08 1.63 25.60 9.09 73 Inox Leisure Ltd.24 1.799.98 22.390.5(b) Reversal of tax provision and deferred tax for earlier years .31 3.

65) 16. Parte Company Secretary & Vice President . 3 in Notes to Accounts) A 1.47) 2.36) 433.542.80) 529.35) 400.00 (8.214. 2010 Rs.12 1.73 (28.54) 218.26 (756.87 3.57 As at 31st March.97 3.28 (1.16 2.75) (47.51) (103.997.84 1. in lacs 1.980.CASH FLOw STATEMENT FOR THE YEAR ENDED 31ST MARCH.533.59) (4.811.16 11. Rajesh D.608.30) 384.07 4.refer note no.350.87) 0. capital advances and pre-operative expenses) Sale of fixed assets Acquisition of Intangible Assets Sale of Movie Right Purchase of investments Deposit in Escrow Account for Open Offer .70) 946.3 in Notes to accounts Sale/redemption of investments Interest received Dividend received Net cash from/(used in) investment activities C Cash flow from financing activities Shares issued under ESOP Proceeds from / Repayment of Inter-corporate Deposit (net) Proceeds from / Repayment of Term Loans (net) Interest paid Dividend paid (including tax on dividend) Net cash (used in)/from financing activities Net increase in cash and cash equivalent Opeing cash and cash equivalents Closing cash and cash equivalents Note : Components of cash and cash equivalents are as per Schedule 10 to the Balance Sheet (excluding amount in Escrow Account .09 (515.01) (201.60) 1. 2010 Inox Leisure Ltd.44 1.221.95 (415.01 2.2010 74 Pavan Jain Director Deepak Asher Director Annual Report 08 .Legal Place : Mumbai Dated : 21st May.989. Agrawal Partner Place : Pune Dated : 21st May.10 (81.095.36 (963.61 1.28) 3.711.13 (447. 2010 As at 31st March.09 .301.297.90 3. S.685.22 (194.45 7.80 (16.87) (721. in lacs Cash flow from operating activities Net profit before tax and extraordinary items Adjustments for : Depreciation / Amortization Loss on assets sold/written off Profit on Sale of Movie Rights Amortization of Value of Stock Options Interest received Dividend received and Profit on sale of Investments Interest paid Operating profit before working capital changes Adjustments for : Trade and other receivables Inventories Trade payables Cash generated from operation Direct taxes paid (net) Net cash from/(used in) operating activities B Cash flow from investing activities Purchase of fixed assets (including change in Capital work-in-progress.19) (32.464.24 75.18) (2.612.07) 4.689.83) (976.52 (529.302.66 (1.08) 1.650.52 232.66) 4.see note no.986.43) (40.12 42.64 (388.619.97) 4.12 As per our report of even date attached For Patankar and Associates Chartered Accountants S.97) 13.62 (4.684.85) 447.65 (4.042. 2009 Rs.82 (25.48 232.

892.28 387. 2 in Notes to Accounts Amalgamation Reserve Balance as per last Balance Sheet General Reserve Balance as per last Balance Sheet Profit and Loss Account Balance as per Annexed Account Total Schedule 3 : Secured Loans (for securities.10 1.00 500.005.83 22.10 Inox Leisure Ltd.189.each Issued and Subscribed Capital 61.90 5.998.55 7.00 3.058.00 6. Less: Amount recoverable from ESOP Trust .77 13.00 6.94 106. in lacs 7.604.76) 12.189.63 13.82 12.500.000. 2010 Rs.33 2.200.14 6.76 Lacs) Total Schedule 4 : Unsecured Loans Inter-corporate Deposit .005.22 Lacs . . 10/.SCHEDULES TO BALANCE SHEET As at 31st March.886.600.55 40.633) shares are held by the Ultimate Holding Company.42 12.183.929.000 Equity Shares of Rs.from Ultimate Holding Company Total Annual Report 08 .863.33 5.28 387.from Holding Company .895.31) 13.00 1.849.01 (52.66 12.see note no.1120. in lacs Schedule 1 : Share Capital Authorised Capital 75.92 6.929.70 (6.149. 2 in Notes to Accounts Adjusted Issued and Subscribed Capital Schedule 2 : Reserves & Surplus Share Premium Account Balance as per last Balance Sheet On account of Employee Stock Options Less: Amount recoverable from ESOP Trust and Deferred Employee Compensation Account .548 Equity Shares of Rs.59 24.82 2.700.400.41 42.577.000) shares are held by the Holding Company and 714.886.500.400.00 6. see note no.146.092 (previous year 39. 2009 Rs.420 (previous year 511.548 Equity Share issued to shareholders of erstwhile Calcutta Cine Private Limited pursuant to the scheme of Amalgamation.each.604.90 5.see note no.215. b) 1.615.895.Previous Year Rs.70 156. fully paid-up Out of above: a) 40.09 75 As at 31st March.01 5. 7 in Notes to Accounts) Term Loans from Banks (Repayable within one year Rs 1786. 10/.00 12.

31 772.128.256.63 725.46 5.23 28.12 5.02 lacs in respect of building at Nariman Point.4) 6 Less: Capitalised 7 Closing balance (5-6) Inox Leisure Ltd.2010 DEPRECIATION/AMORTIZATION As at Additions Deductions As at 1.289.22 6.23 2.61 1.48 4.81 8.26 1.31 28.049.454.078.11 497.09 .59 1.25 88.59 As at 31.92 196.457. in lacs Schedule 6 : Pre-operative expenditure pending allocation 1 Opening Balance 2 Add: Expenses incurred during the year Salaries.45 1.93 6.00 336.80 2.06 692.2010 31.934.00 415.86 10.69 725.87 47.03.666.59 1.16 27.289.24 10. in lacs 922.2009 A) Tangible Assets Land (Freehold) Land (Leasehold) Building (*) Lease hold improvements Plant & Machinery Wind Mills Office Equipments including Computers Furniture & Fixtures Vehicles Sub-Total (A) B) Intangible Assets Software Film Distribution Rights & Prints Cost Movie Production Sub-Total (B) TOTAL PREVIOUS YEAR GROSS BLOCK Additions Deductions during during the year the year 2.2010 the year the year 22.359.11 13.47 2.74 9.540.43 207.66 130.66 31.69 0.169.27 33.88 10.14 52.86 10.30 442.37 38.02 31.70 5.68 1.48 831.182. ESIC etc.43 1.96 79. 4681.48 602.40 36.06 2.35 1.277.182.00 2.71 227.02 329.46 31.56 505.42 367.73 2.63 5.84 Annual Report 08 .015.75 16.091.350.023.47 (*) Includes Rs.87 34.144.53 21.2009 2.53 3.25 1.17 1.00 5.779.84 290.25 692.84 139.95 4.78 989.97 545.182.49 16.031. Legal. 2010 Rs.61 33.34 1.93 33.68 0.89 6.36 102.95 1.934.95 29.75 8.650.61 2.51 10. 76 As at 31st March.112.68 219.182.10 10.71 4.41 819.86 184.218.673.95 2. 2009 Rs.92 1.129.832.50 15.86 4.38 102.747.09 70.527.49 50.32 22. Bonus etc. As at 31st March.48 Rs.44 1.44 8.681.25 0.88 692.15 28. Contribution to PF.03.99 5.687.03.37 2.793.90 2.26 18.51 7.39 29.349.44 637.76 38.58 41.58 834.759.45 1.71 6.55 1.62 24.42 345.24 728.102.59 4.209.42 367.47 48.273.774.41 940.500.62 5.176.65 130.289.SCHEDULES TO BALANCE SHEET Schedule 5 : Fixed Assets PARTICULARS As at 1.607.191.76 47.06 121.4.84 1.90 719.832.32 116.106.56 266.743.54 126.954.42 1.60 1.545.40 290.91 136.35 128.37 16.542.42 339.4.72 2.102. Professional and Consultancy Charges Travelling & Conveyance Rent Insurance Electricity Charges Communication Expenses Rates & Taxes Processing Fees Security Charges Brokerage Miscellaneous Expenses Interest on fixed loans 3 Sub-Total (1 + 2) 4 Less: Pre-Operative Income earned during the year Miscellaneous Income 5 Sub-Total (3 .48 869.25 708.97 481.063.30 106.40 41.43 2.125.12 989.91 6.46 5.82 762.015.2009 during during 31.72 31.93 1.10 206.in lacs NET BLOCK As at As at 31.088.14 675.056.49 7.25 371.03.049.54 11. Deed of Apartment of which is to be executed.58 11.51 5.58 11.776.040.87 629.41 482.35 81.15 30.77 31.

SCHEDULES TO BALANCE SHEET As at 31st March.12 324.58 21.57.14 54.Nil) Equity shares of Fame India Limited of Rs.34 162.Rs. 21. 2010 Rs.14939. Long-term.21 75.50.14 lacs (previous year Rs.565.66 86.09 77 Inox Leisure Ltd.52 54. in lacs 21.94 8.Nil) Total Schedule 8 : Inventories (for basis of valuation.10 93.21. see accounting policy in Notes to Accounts) Food & Beverages Stores.38 - 8.3 in Notes to Accounts) Market value of quoted investment .85 3.3 in Notes to Accounts Total As at 31st March.78 667.14 lacs) are pledged with Government Authorities) B] Quoted In Equity Shares 17.99 51.54 645. considered good by the Management.269.54 3. unless otherwise stated) Considered Good Exceeding 6 months Others Considered Doubtful Exceeding 6 months Less: Provision for doubtful debts Total Schedule 10 : Cash & Bank balances Cash on Hand With scheduled Bank in Current accounts in Dividend accounts in Deposit accounts (Kept as lien against bank guarantees .Previous Year Rs.10 531.111.10/each.85 721. fully paid-up.19 232. Spares & Fuel Total Schedule 9 : Sundry Debtors (unsecured. 2009 Rs.12 Annual Report 08 . Out of these. .53 195.755.15 21.95 645.4.89 1.see note no. at Cost) A] Unquoted (In Government Securities) National Savings Certificates (Held in the name of Directors/Employees and certificates worth Rs.248.38 896.78 896.94 108.288 (previous year .Rs.79 4.27 lacs (previous year . 1.80 66.9. in lacs Schedule 7: Investments (Non-Trade.80 36.68 87.74 174.93 lacs .38 110.15 932.25 36.72 113.21 - 5.221.42 lacs) in Escrow account .Rs.751 equity shares are in escrow account and not held in the name of the Company (See note no.

Considered Doubtful Less: Provision for doubtful advances Deposits Entertainment Tax Refund Claimed Service Tax Credit Available Account MAT Credit Entitlement Income Tax paid (net of provisions) Total Schedule 12 : Current Liabilities Sundry Creditors -Dues to Micro and Small Enterprises -Others Security Deposits Investor Education and Protection Fund shall be credited by the following amounts: .88 45.84 3.373.91 2.993.29 805.17 Inox Leisure Ltd.270.157. considered good by the Management.17 165.66 222.Unclaimed Dividend (see note no. unless otherwise stated) Advances recoverable in cash or in kind or for value to be received .59 760.25 335.29 1. in lacs Schedule 11 : Loans & Advances (unsecured.39 290.59 247.88 168.28 in Notes to Accounts) Advance from customers Other Liabilities Total Schedule 13 : Provisions Provision for Fringe Benefit tax (net of taxes paid) Provision for Gratuity & Leave encashment Provision for Expenses Total As at 31st March. in lacs 1.45 2.SCHEDULES TO BALANCE SHEET As at 31st March.48 152.489.68 154.60 686.00 24.61 2.98 27.91 119.25 45.99 148.993.502.00 50.14 3.98 153.82 177. 2009 Rs.91 4.100.25 2.679. 2010 Rs.22 795.20 6.63 4.99 111.74 45.09 .59 3.184.56 531.29 760.29 1.06 12.43 3.45 45.79 3.20 274. 78 Annual Report 08 .83 2.656.Considered Good .373.418.19 1.282.

57 2.59 120.27 70.28 46.09 79 Inox Leisure Ltd.74 4.98 Annual Report 08 .05 50.66 88.16 46.65 78.29 52.63 197.in lacs 16.364.80 51.SCHEDULES TO PROFIT AND LOSS ACCOUNT For year ended 31st March.2009 Rs.92 3.86 783.65 101.66 For year ended 31st March.38 0.81 49.2010 Rs.27 1.523.69 3.162.835.07 0.04 0.14 41.55 1.94 28.624.251.43 153.79 87.351.93 25.11 37.82 13.590.71 6.68 22.24 246.89 14.76 3. .in lacs Schedule 14 : Sales & Services Box office Revenues Food & Beverages Revenues Conducting Fees Advertising Income Film Distribution Income Management Fees Profit on Sale of Movie Produced Parking Charges Sale of Power Other Operating Income Total Schedule 15 : Other Income Interest On Bank Fixed Deposits On Long Term Investments On Income Tax Refunds Other Interest Profit on Sale of Current Investments (net) Dividend on Current Investments Sundry Liabilities Written Back Miscellaneous Income Total 18.67 714.

72 106.39 109.10 190.73 14.00 93.585. 80 Annual Report 08 .39 9.82 21.32 251.62 63. Wages.643.91 139.665.80 130.97 447.36 3.18 166.39 304.04 527.01 26.37 225.39 - 240.344.53 2.78 30.39 167.29 203.38 For year ended 31st March.26 (321.72 41.16 75.09 . Allowances and Benefits Contribution to Provident and other Funds Gratuity Staff Welfare Expenses Outsourced Personnel Cost Power & Fuel Water Charges Property Rent and Conducting Fees Common Facility Charges Rates & Taxes Service Tax .536.see note no.4(b) in Notes to Accounts Total Schedule 17 : Interest Interest on Fixed Loans Other interest Total 1. .23 114.45 224.91 2.78 122.56 206.65 530.31 881.380.Plant and Machinery Repairs & Maint.28 1.54 41. Loss on fixed assets sold/scrapped (net) Bad Debts Written Off Provision for doubtful debts Provision for doubtful advances Miscellaneous Expenses Service Tax Credit in respect of earlier years .Building Repairs & Maint.303.24 247.4(a) in Notes to Accounts Print Expenses Travelling & Conveyance Communication Expenses Printing & stationary Advertising & sales promotion House keeping Charges Security Charges Repairs & Maint.75 114.58 62.Others Legal & Professional Fees & Expenses Director Sitting Fees Insurance Vehicle Fuel & Maint.See Note No.92 7.90 10.97 3.536.60 724.71 3.13 237.in lacs 1.48 432.89 53.06 447.29 102.97 85.76 14. .02 198.SCHEDULES TO PROFIT AND LOSS ACCOUNT For year ended 31st March.07 1.04 434.35 55.87 Inox Leisure Ltd.22) 10.96 125.19 0.90 14.2009 Rs.70 113.68 529. .61 9.009.50 618.23 33.67 62.2010 Rs.32 255.in lacs Schedule 16 : Operating and Other Expenses Salaries.05 49.27 57.446.

Income from Sale of Food & Beverages is accounted at the point of sale. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. are fully depreciated in the first year. g) Investments : Long-term investments are carried at cost. Project pre-operative expenses and expenditure incurred during construction period of Multiplexes are capitalized to various eligible assets in respective Multiplexes. Current Investments are carried at lower of the cost and fair value. which is carried at cost. costing Rs 5. Based on technical opinion Windmill is considered as a continuous process plant and depreciation is provided at the rate applicable thereto. depreciation is provided on straight-line basis as under: I. On other fixed assets.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. except freehold land. prorata for the completed weeks. 1956. Income from investments is accounted for on accrual basis. Annual Report 09 . Conducting fees are in respect of charges received from parties to conduct business from the Company’s Multiplexes. Such expenses in respect of the Multiplexes under construction are carried forward for being capitalised at the time of completion. third and fourth quarter respectively and in a quarter. 30%. c) Fixed Assets: Fixed assets are carried at cost of acquisition or cost of construction.000 or less. b) Revenue Recognition: Income from Box Office and Film Distribution is recognized as and when the movie is exhibited. 2010 SCHEDULE : 18 1. II. . e) Amortization and Depreciation of Film Distribution Rights and Prints Cost (intangible assets): Cost of film distribution rights acquired and prints cost is amortized over a period of one year from the date of release of the movie as under: 50%. over the period of useful life on the basis of the respective agreements or the useful life as per Schedule XIV of the Companies Act. SIGNIFICANT ACCOUNTING POLICIES a) Basis of Accounting: The financial statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standard) Rules. whichever is shorter. 1956. excluding freehold land. 1956. second. 10% and 10% of the costs in the first. f) Impairment of assets : Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company’s asset. On Leasehold Improvements. d) Amortization and Depreciation of Fixed Assets: Cost of leasehold land is amortized over the period of lease. Individual items of Fixed Assets added during the period. Income from sale of power is recognized on the basis of actual units generated and transmitted to the purchaser.10 81 Inox Leisure Ltd. at the rates and in the manner specified in Schedule XIV to the Companies Act. Income is net of refunds and complimentary. 2006 and the relevant provisions of the Companies Act. On other fixed assets. as reduced by accumulated depreciation/ amortization.

120 shares 33.332 shares On 27th October 2010 (Second Grant) The vesting period for these equity settled options is between one to four years from the date of the grant. 75 lacs to the Trust for subscription of these shares at the beginning of the plan. subject to consideration of prudence. Out of the 500. Following stock options have been granted to the employees: On 29th January 2007 (First Grant) 244. i) Employee Benefits : Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account in the year in which related services are rendered. determined on the basis of actuarial valuation techniques. The deferred tax in respect of timing differences which reverse during the tax holiday period is not recognised to the extent the Company’s gross total income is subject to the deduction during the tax holiday period. As per the Guidance Note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India. the Company had issued 500. the Company has reduced the Share Capital by the amount of face value of equity shares and Share Premium Account by the amount of share premium on such shares. During the year ended 31st March 2006. on timing differences. The Company has provided finance of Rs. The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method. using the projected unit credit method. The options are exercisable within one year from the date of vesting.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. l) Provisions : A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax within the period specified for utilization of such credit. k) Taxes on Income : Income tax expense comprises of current tax and deferred tax charge. j) Borrowing Cost : Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Cost is determined using FIFO method. Company’s contribution towards provident fund paid / payable during the year are charged to the Profit and Loss Account.000 equity shares allotted to the Trust. All other borrowing costs are charged to revenue.540 shares have been transferred to employees up to 31st March 2010. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Post employment benefits in the form of Gratuity and Leave Encashment are recognized as an expense in the Profit and Loss Account at the present value of the amounts payable.10 . being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Actuarial gains and losses are recognized in the Profit and Loss Account. 98. 10 each at a premium of Rs. 5 per share to Inox Leisure Limited – Employees’ Welfare Trust (“Trust”) to be transferred to the employees of the Company under the scheme of ESOP framed by the Company in this regard. 82 Annual Report 09 . Deferred tax is recognised. The Company has also given effect to the above in the calculation of its Basic and Diluted earnings per share. shares allotted to the Trust but not transferred to employees is required to be reduced from Share Capital and Reserves. Inox Leisure Ltd. Minimum Alternate Tax (MAT) paid on the book profits.000 equity shares of Rs. 2010 h) Inventories : Inventories are valued at lower of the cost and net realisable value. for the balance number of shares. Accordingly. 2. which gives rise to future economic benefits in the form of tax credit against future income-tax liability.

770 91.10 83 Inox Leisure Ltd. comprising of 43.64% to 7. The Company has further acquired another 25. 1997 (“Takeover Code”). Wages.80% 0.71% Rs. 15 per option and the weighted average remaining contractual life is as under: Options granted on 29th January 2007 1.25 In respect of the options granted under the Employees’ Stock Option Plan. comprising of 7. 25. ‘Salaries. for an Open Offer of 8. from the market.332 4.75 lacs) being the amortization of employee compensation. 15 Weighted average exercise price of all stock options All stock options are exercisable at the exercise price of Rs. 0. profit after tax lower by Rs.751 equity shares in Fame (India) Limited.54 lacs.5 to 4. 0. the Company has acquired 1.537 equity shares in Fame (India) Limited.57.01 each.54 lacs and the basic and diluted earnings per share would have been lower by less than Rs. Consequent to the first acquisition above. 43.060 33.112 28. Had the Company adopted fair value method in respect of options granted. 51 per equity share.510 27. through a block deal carried out on the Bombay Stock Exchange.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. at a price of Rs.21% stake in Fame (India) Limited.07. the Company. Allowances and Benefits’ in Schedule 17 includes Rs. .91. through its merchant banker.759 equity shares constituting 20% of the fully-diluted capital of Fame (India) Limited. as required under the Takeover Code.22 lacs (previous year credit of Rs. The fair value of stock options using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as under: Risk free interest rate Expected life Expected volatility Expected dividend yield Exercise price Stock price 5. Further.36% 1. 56. During the year.24% to 69.231. 2010 The summary of stock options is as under: Outstanding on 1st April 2009 Granted during the year Lapsed during the year Exercised during the year Outstanding as on 31st March 2010 Exercisable as on 31 March 2010 st 90. 0.5 years 64. the accounting value of options is amortized over the vesting period. under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations. through two separate block deals carried out on the Bombay Stock Exchange. Consequently. Enam Securities Limited.28% stake in Fame (India) Limited. in accordance with the Guidance Note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India.33 years 3.890 Rs. 15 Rs.50. the Annual Report 09 . the employee compensation cost would have been higher by Rs.08 years Options granted on 27th October 2010 The fair value of stock options granted during the year is Rs. being the Promoters’ shareholding. 3. A Share Purchase Agreement between the Company and Promoters of Fame (India) Limited recording the terms and conditions of the abovementioned first acquisition has been executed. has made a Public Announcement. 16.

as deduction.84 lacs in respect of rentals paid during the year ended 31st March 2009 was not charged to the Profit and Loss Account. through Enam Securities Limited.75. and is awaiting its approval on the same.751 equity shares acquired from the Promoters of Fame (India) Limited under the terms of the Share Purchase Agreement mentioned above have been placed in escrow with Standard Chartered Bank.65.00 lakhs in respect of current year. During the year ended 31st March 2009. The Company has. 137/72/2008-CX dated 21st November. In respect of Service-tax Matters (a) During the year ended 31st March 2009. treating the amount of entertainment tax exemption amounts as a capital receipt in respect of multiplexes in those States covered by the orders of the Commissioner of Income-tax (Appeals). Consequently. to the extent of 20% of service tax collected. and the balance amount of service tax paid was charged to the Profit and Loss Account. being 100% of the funds required under the Open Offer. 2010 Company has placed Rs 42 crores.00 lakhs in respect of earlier years and Rs.288 equity shares. till conclusion of the Open Offer formalities. the Company has now recognized the MAT credit entitlement of Rs. and the 1. the service tax of Rs. renting of immovable property is now defined as a taxable service with retrospective effect from 1st June 2007. In the opinion of management. 292.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. vide Circular No CBEC No. in addition to a few multiplexes in the last year. during the year ended 31st March. In respect of taxation matters (a) In the appellate proceedings before the Commissioner of Income-tax (Appeals) the Company’s contention that the amount of entertainment tax exemption availed for some of its multiplexes is a capital receipt has been accepted. as per the then prevailing regulations.62 lakhs) in the Profit and Loss Account under ‘Taxation in respect of Earlier Years’. 4.22 lacs and the same was shown separately in the Schedule 16: Operating and Other Expenses.57.63 lakhs (Previous year Rs.48% stake in Fame (India) Limited. 978. 2). wherein it was held that renting of immovable property by itself is not a service and accordingly the levy of service tax on activity of renting immovable property is ‘ultra vires’ the Finance Act. the Central Board of Excise and Customs. 84 Annual Report 09 . the Company was claiming service tax set-off in respect of service tax paid. Inox Leisure Ltd. 192. in respect of one more multiplex during the current year. in view of the Honorable Delhi High Court’s judgment dated 18th April 2009 in the case of Home Solution Retail India Ltd. and credited an amount of Rs. had clarified that such unutilized accumulated amount of service-tax as on 31st March 2008 can be utilized for payment of service tax after 1st April 2008. comprising of 50. 2009. estimates of future taxable income and the extension of period for utilization of MAT credit as per the amendment made by the Finance Act (No.84 lacs in respect of rentals paid during the year ended 31st March 2009 and the same is included in the amount of Service Tax charged to the Profit and Loss Account in Schedule 16: Operating and Other Expenses. the Company has provided for the above service tax of Rs. the Company would have normal tax liability within the specified period to avail such MAT credit. 5. 1022. on the basis of projections. the Company has recomputed its current tax liability and deferred tax liability. (b) The Minimum Alternate Tax (MAT) paid by the Company is entitled to be carried forward and utilized in subsequent years. filed a Draft Letter of Offer with the Securities and Exchange Board of India. 318. Accordingly. the Company holds 1.50. & Others v. as per the amendment made by the Finance Act. During the current year.10 . As a result of the above acquisitions. 2009 the Company had taken credit for such unutilized accumulated amount of service tax of Rs. in escrow with HDFC Bank. (b) Till the year ended 31st March 2008. Provision for current tax is also made on the same basis and consequently the provision for current taxation is for Minimum Alternate Tax payable on book profit. 321. 318. Fame (India) Limited shall become a subsidiary of the Company on completion of the Open Offer formalities. 2010. Union of India. 2008. Accordingly. 1994. Based on legal advice received by the Company. Accordingly.

Rajarhat (Kolkata). in the opinion of the management. 2372. The Entertainment Tax exemption in respect of some of the Multiplexes of the Company has been accounted on the basis of eligibility criteria as laid down in the respective Schemes but is subject to final Orders yet to be received from respective authorities. The exemption from payment of Entertainment Tax in respect of Multiplexes of the Company. 2010 6. Cumulative amount as on 31st March 2010 . 391. In view of the diverse nature of food and beverages sold by the Company. 408. turnover. net of advances Rs. 10. it is not practical to give quantitative details thereof. Contingent Liabilities: a. In the opinion of Board of Directors. Term loan from Axis Bank is secured by mortgage of immovable property situated at Vadodara and charge on all stocks.11 lacs) Entertainment Tax demand – Rs.30 lacs). Estimated amounts of contracts remaining to be executed on capital account and not provided for. Term loan from Citi Bank is secured by mortgage of immovable property situated at Pune and charge on all movable assets situated at Pune and Thane multiplexes and six future multiplexes. have been decided in favour of the Company by the Honourable High Court of Gujarat vide its order dated 26th June. loans and advances are approximately of the values stated if realised in the ordinary course of business and the provisions of depreciation and of all known liabilities are adequate and not in excess of the amount reasonably necessary. c. 11.54 lacs) Municipal Tax demand – Rs.74 lacs).Rs. is subject to fulfillment of the terms and conditions of the respective Government policies issued in this regard.54 lacs (Previous Year Rs.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.95 lacs (Previous Year Rs.00 lacs) a.Rs.06 lacs (Previous Year Rs.94 lacs). 1346. Pending receipt of final eligibility certificate the figures indicated in the above note include the figures pertaining to the said Multiplex. opening / closing stocks in respect of the same are not given.10 85 Inox Leisure Ltd. 15. 55. c. debts and movable properties situated at Burdhwan.42 lacs (Previous Year Rs.45 lacs (Previous Year Rs. b. 8.40 lacs (as on 31st March 2009 . the issues in respect of the eligibility for exemption from payment of entertainment tax and the method of computing the exemption availed. . Bank Guarantees furnished by the Company for performance of contractual obligations Rs.91 lacs) being Entertainment Tax in respect of such Multiplexes has not been charged to profit & loss account. 2009. 9. 58. d. In respect of the Multiplex Cinema Theatre at Vadodara. 402. Consequently. Claims against the Company not acknowledged as debt – Rs. 55. In respect of Entertainment Tax liability of the Company and its treatment in these accounts: - b. 53. 53. Term loan from Canara Bank is secured by mortgage of immovable property situated at Nariman Point and hypothecation of movable properties and current assets at Nariman Point. which are eligible for such exemption.14 lacs (Previous Year Rs. quantitative information regarding purchases. Term loan from ING Vysya Bank is secured by second charge on immovable property situated at Nariman Point and exclusive charge on all the Current and Fixed assets situated at Vizag multiplex and six future multiplexes. Indore Central. Accordingly the amount of Rs 277. 2119. Annual Report 09 . the current assets. Jayanagar (Bangalore). 7. Siliguri and Maleswaram (Bangalore) multiplexes. e. 391.06 lacs) Service Tax demand – Rs. 1109. All items of food and beverages are indigenously procured.74 lacs (Previous Year Rs. 960.

51 1.16 Previous Year (Rs.54 48.81 lacs (Previous Year Rs.25 3.33 0.69 lacs) is paid to a firm in which one of the directors is a partner.47 3. in Lacs) 45.50 1.81 250.13 Previous Year (Rs. in Lacs) 153. in Lacs) 10. 4. in Lacs) 151. wages.00 0.96 lacs (Previous year Rs. Amount of Rs.50 0.45 Previous Year (Rs.92 41. Expenditure incurred/payments in Foreign Currency. Particulars of remuneration to Manager: Particulars Salary & Allowances Contribution to Provident Fund Total Legal & Professional fees.40 0.88 2.17 4.00 1.75 Annual Report 09 .70 1.80 8.00 0.10 . 1.53 10. in Lacs) Nil 60. towards 15.40 0.50 1. 266. allowances & benefits Inox Leisure Ltd.99 4.33 49.40 3. in Lacs) 4.75 1. in Lacs) 46.50 0.62 1. Current Year (Rs.53 16.78 0.62 2. Particulars of Prior period expenses: Particulars Entertainment Tax Salaries. in Lacs) 4. 2010 12.34 lacs) 17.21 Current Year (Rs. Tax deducted at source from Interest received is Rs.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.41 18. 42.10 14. in Lacs) 94.42 Previous Year (Rs. Particulars Travelling expenses CIF Value of Capital Goods imported 13.66 Previous Year (Rs. in Lacs) Nil 1.14 18.60 5. 86 Current Year (Rs.98 35. Particulars of payment to Auditors : Particulars Statutory Audit Tax Audit Limited Review & Corporate Governance For taxation matters Certification matters Fees for other matters Out of pocket expenses Service tax on above Total Current Year (Rs.07 0. Following expenses in the Profit & Loss Account are net of recoveries of the amounts mentioned hereunder: Particulars Power & Fuel Salaries Water Charges Advertisement & Sales Promotion Housekeeping Expenses Security Expenses Current Year (Rs.

10 87 Inox Leisure Ltd.05 19. in Lacs) 1549. Property Rent and Conducting Fees of Rs.93 Total 76078. The Company has accordingly accounted interest of Rs. Operating leases for premises (offices and residential accommodations for employees) . 3012. in Lacs) 1677. The operating licenses in respect of some of the multiplexes are not in the name of the Company.a. 2010.50 117.03 lacs (Previous Year Rs.07 lacs) are included in ‘Property Rent and Conducting Fees’ in Schedule 17 to the Profit and Loss Account The future minimum lease / conducting fees payments under these arrangements are as under: Particulars Current Year (Rs.01 1677. The Company’s significant leasing arrangements are in respect of :a. 3.04 32.07 lakhs receivable upto 31st March. . 75. 22.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.01 lacs (Previous Year Rs. 20. these lease arrangements are non-cancelable.70 Later than five years 57192. range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms.54 23. 10. 2010 Legal & Professional fees and expenses Repairs & Maintenance .18 Previous Year (Rs.20 Previous Year (Rs.Generally.59 3.85 lacs) are included in Schedule 6 : Pre-operative Expenditure Pending Allocation.01 102.57 Later than one year and not later than five years 15271. The major components of the deferred tax assets and liabilities are as under: Particulars Deferred Tax Liabilities Depreciation (net) On account of amortization of Film Distribution Rights and Prints cost Total Liabilities Deferred Tax Assets Expenditure allowable on payment basis Others Total Assets Net Deferred Tax Liability Current Year (Rs.83 1559.72 2. The Company is operating some of the multiplexes under Operating Lease / Business Conducting Arrangement. 2633.93 4.91 121.12 21. The arbitration award in the matter of disputed recoveries pertaining to one of the multiplex of the Company has been received in favour of the Company and the arbitrator has further granted interest claimed on the unpaid amount at the rate of 15% p.07 62102. in Lacs) Not later than one year 3613.63 b. in Lacs) 2932. 15.Others Interest on fixed loans Miscellaneous expenses Total Nil Nil Nil 0. These arrangements are for a period of 9-25 years with a minimum lock-in period of 3-10 years and the agreement provides for escalation in rentals after pre-determined periods. Nil lacs (Previous Year Rs. Annual Report 09 . Lease rentals of Rs.85 95.33 15.47 12300.74 12.42 lacs) are included in ‘Property Rent and Conducting Fees’ in Schedule 17 to the Profit and Loss Account and lease rental of Rs.91 9.85 1552.45 1431.57 97.09 46870.

Un-allocable and Corporate Total Inox Leisure Ltd. Multiplexes b.87 24563.37) 28.10 70.31 Nil Nil 5951.24) 2434. Film Distribution c.34 37333.14 20194. Film Production d. in Lacs) 22516.45 Nil 120. 2010 23.86 1989.53 194. Distribution b.31 2057. Multiplexes b.96 Nil 0. Multiplexes b.14 290.84 28. Power e.09) Nil 63.51 69. Film Distribution c.00 8868. Segment Liabilities a.01 4339.78 378.82 Annual Report 09 .57 2286.85 (286.76 Previous Year (Rs. 88 Current Year (Rs.96 25611.02 2508.72 152. Film Distribution c. Power Total Inter Segment revenue Total External revenue II Segment Result a.10 .45 (22.60 22788.88 2146.98 55655.65 82. in Lacs) 25360.50 152. Film Production d. Multiplexes b.80 529.51 663.33 151. Film Production d.39 14934.36 447.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.83 (444.81 35292. Film Distribution c.08 19.13 77.09 151.87 2848.36 22940.00 699.10 131.21 28. Film Production d. Particulars No I Segment Revenue a.80 25743.32) 2605. Information about Primary Segment Sr. Power e.61 673. Segment Information A.86 126. Un-allocable and Corporate Total Segment revenue Less: Inter Segment revenue a.27 5.44 (794.62 82. Power Total Segment result Add: Un-allocable Income (Net of Un-allocable expenses) Less: Interest expenses Total Profit Before Tax Taxation (including Deferred Tax.07 39979. Segment Assets a. Un-allocable and Corporate Total B. Power e. Fringe Benefit Tax and taxation in respect of earlier years) – Net Profit After Tax III Other Information A.65 (*) 140.97 1811.61 194.

Film Distribution c.20 1542.65 lacs.05 lacs (Previous year Rs.68 lacs) is recognized as an expense and included in ‘Contribution to Provident & Other Funds’ in the Profit and Loss Account and Rs.87 1225. Un-allocable and Corporate Total B. 4246.00 Nil 4989. Film Production d. Notes: a.44 16. Multiplexes b.37 Nil 39. Film Distribution Business – Distribution of Movies. Inter-segment revenue of Power Business comprises of power generated and consumed in Multiplex Business. Multiplex Business –Operating & Managing Multiplex Entertainment Centres. 94. 28. Film Production d. 89 Annual Report 09 . Multiplexes b.35 Nil 4327. c. 97. . Power e.92 Nil 39. 2010 C. Inter-segment revenues are priced at market price. Film Distribution c. 10.21 4699.72 1493. Hence the Company is operating in a single geographical segment. C.35 lacs (Previous Year Rs.24 Nil Nil Nil Nil Nil Nil (*) Gross revenue Rs. 24. Depreciation & Amortization a. Employee Benefits: a) Defined Contribution Plans: Contribution to Provident Fund of Rs. The power is also generated and sold / captively consumed in India.12 385. 2. Capital Expenditure a. The Company operates in following business segments: i. Power Total E. Film Production d.05 290.37 Nil 81. Inter-segment revenue of Distribution Business comprises of film distributors’ share in respect of movies distributed by the Company and exhibited in its multiplexes. Power Total D.82 0. The above segment information includes the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. Power Business – Generation of Wind Power b.21 Nil Nil Nil Nil 16. Multiplexes b.20 1650. Film Distribution c. ii. Information about Secondary (Geographical) Segment All the multiplexes of the Company are located in India and all the movies are produced/distributed in India.10 Inox Leisure Ltd.87 9.74 lacs) is included in pre-operative expenses. iii. 400 lacs from sale of intangible asset – net revenue Rs. Non-cash expenses (other than depreciation and amortization) a. Film Production Business – Production of Movies iv.

Actuarial Assumptions Discount Rate 8% 7% 8% 7% 7% 6% Salary Escalation Rate 7% 6% Retirement Age 58 years Withdrawal Rates 10% 10% 10% 10% Mortality LIC (1994-96) published table of rates The above defined benefit plans are unfunded. considered in actuarial valuation.01 Actuarial (Gain)/Loss (22.91 52.93 49.18 Expenses recognized in the Profit and Loss Account 3.29 31.11) Actuarial (Gain)/Loss (22. 25.10 .45 49.37) (8. 90 Previous Year (Rs.79) (10.93 49.2010 31.30 2.21) (5.67 7.85 32.78 116.93 33.26 35.2010 31.2009 31.3.76) 5.3.3.00 40.2009 1.22 Interest Cost 5.61 84.85 32.72 (30.01 Current Service Cost 31.12 Benefit paid (4.95) 14. Expenses recognized in the Profit and Loss Account Current Service Cost 31.12 Interest Cost 5. seniority.80 Nil Annual Report 09 .29 2.31) (12. in Lacs) 192. 2010 b) Defined Benefit Plans: The amounts recognized in respect of Gratuity and Leave Encashment – as per Actuarial valuation Particulars Gratuity Leave Encashment As at As at As at As at 31. take account of inflation. Change in Benefit Obligation Liability at the beginning of the year 84.76) 5.30 2. The estimate of future salary increase.80 3.00 40. Alok Tandon (Manager) (iii) Particulars of Transactions: Current Year (Rs.3.26 35.37) (8.05 52. promotion and other relevant factors such as supply and demand in the employment market. in Lacs) A) Transactions during the year Interest Paid Gujarat Fluorochemicals Limited Inox Leasing & Finance Limited Inox Leisure Ltd.80 3. Related Party Disclosure: (i) Where Control Exists Holding Company – Gujarat Fluorochemicals Limited Ultimate Holding Company – Inox Leasing & Finance Limited (ii) Other related parties with whom there are transactions: Fellow Subsidiary – Inox Motion Pictures Limited Key Management Personnel – Mr.89 41.69 3.95) Liability at the end of the year 95.72 (30.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.69 3.

17 14.00 13780. Particulars of dues to Micro.00 2684.80 52.00 2604. Small and Medium Enterprises Development Annual Report 09 .80 49.10 Nil 26.00 1281.10 80. 2006 (MSMED Act): Current Year Previous Year (Rs. in Lacs) (Rs.00 500.44 243.00 30.10 91 Inox Leisure Ltd.34 525.20 27.00 119.00 8.80 45.26 Nil 13200.70 Nil 1281.00 111.00 80.70 12200.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. Alok Tandon Distributors’ Share Paid Inox Motion Pictures Limited Sale of Movie Rights Inox Motion Pictures Limited Rent Received Inox Motion Pictures Limited Reimbursement of expenses received Gujarat Fluorochemicals Limited Inox Motion Pictures Limited Reimbursement of expenses paid Gujarat Fluorochemicals Limited Inter-corporate Deposits Received Gujarat Fluorochemicals Limited Inox Leasing & Finance Limited Inox Motion Pictures Limited Inter-corporate Deposits Repaid Gujarat Fluorochemicals Limited Inox Motion Pictures Limited B) Amounts Outstanding Inter-corporate Deposits Received Gujarat Fluorochemicals Limited Inox Leasing & Finance Limited Other Receivables Inox Motion Pictures Limited multiplexes as under: 1.60 Nil 8.21 Nil Nil Nil 8.14 0. in Lacs) 111.40 52.67 48.10 Nil 1604. The Company has recognised a provision towards estimated liability in respect of municipal taxes payable for one of its Particulars Opening Balance Provided during the year Paid during the year Closing balance Act.77 1604.00 500.10 Nil 116. Small and Medium Enterprises under Micro.20 88.00 0.00 12700.00 Nil Nil 525.26 8. 2010 Inox Motion Pictures Limited Remuneration Paid Mr. .14 Nil 8.61 401.

3.24 3.96 30.per share (Rs. In respect of amounts mentioned under Unclaimed Dividends.76 2434.) Basic Earnings per share – nominal value Rs.58 0. 10/.2010 (Rs.NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 29.49 0.Legal Place: Mumbai Dated:21st May. 2010 Particulars As at 31. is enclosed vide Annexure.per share (Rs.00 1.30 0. 28.53 Principal amount due to suppliers under MSMED Act at the year end Interest accrued & due to suppliers under MSMED Act on the above amount.91 0. 2010 For Inox Leisure Limited Rajesh D.07 Weighted average number of equity shares used in computing basic earnings per 61481458 61457768 shares (nos. 10/.31 66. As per our report of even date For Patankar & Associates Chartered Accountants S S Agrawal Partner Place: Pune Dated: 21st May.96 Diluted Earnings per share . Calculation of Earnings per share : Particulars Current Year Previous Year Profit after tax as per Profit and Loss Account (Rs. in lacs) 2605.) 4.) 4.36 2. Parte Company Secretary & Vice President . Statement Pursuant to Part IV of Schedule VI to the Companies Act. in Lacs) 11.96 0.20 As at 31.) Weighted average number of equity shares used in computing diluted earnings per 61508694 61470282 shares (nos.04 38. in Lacs) 26.24 3. there is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31 March 2010. unpaid at the year end Payment made to suppliers (other than interest) beyond the appointed day during the year Interest paid to suppliers under MSMED Act during the year Interest due & payable to suppliers under MSMED Act for payments already made Interest accrued & remaining unpaid at the end of the year to supplier under MSMED Act The above information has been determined to the extent such parties have been identified on the basis of the information available with the Company. 1956.3. 92 Annual Report 09 .10 .2009 (Rs.nominal value Rs.00 0.2010 Pavan Jain Director Deepak Asher Director Inox Leisure Ltd.

V Generic Names of Two Principal Products/Services of Company (as per monetary terms) Item Code No. Thousands) Total Liabilities Includes Capital work. L M D I S T R I B U T I O N R A T I N G M U L T I P L E X E S Annual Report 09 . Expenditure N IV Performance of Company (Amount in Rs. Product Description N. 3 4 2 1 Profit/Loss Before Tax 4 4 I L 2 6 9 5 2 Net Current Assets 9 Accumulated Losses N Total Expenditure 2 +/— + Dividend Rate % 3 2 7 6 9 0 9 5 8 7 7 6 Profit/Loss After Tax I L 4 7 3 2 4 Earnings per Share in Rs. Thousands) * Public Issue N * Bonus Issue N I L I L * Right Issue N * Private Placement 2 7 7 shares issued pursuant to ESOP and amalgamation Total Asset 5 Sources of Funds Paid-up Capital 6 ESOP Oustanding 7 Reserves & Surplus 2 Unsecured Loans 1 Application of Funds Net Fixed Assets 3 2 3 7 5 0 3 0 6 0 9 0 Intangible Assets 5 4 8 6 3 7 7 8 0 1 Secured Loans 5 Deferred Tax Liability 1 5 5 9 1 3 9 2 9 3 3 1 4 9 4 1 5 6 5 5 0 1 5 5 6 5 5 0 1 Share Capital Suspense I L III Position of Mobilisation and Deployment of Funds (Amount in Rs.in -progress. and pre. .oeration expenditure pending allocation Investments 8 Mise.10 93 Inox Leisure Ltd.STATEMENT PURSUANT TO PART Iv OF SCHEDUlE vI TO THE COMPANIES ACT. Thousands) Turnover 2 +/— + 5 1 6 8 1 1 4 1 1 . Product Description Item Code No. 1956 Balance Sheet Abstract and Company’s General Business Profile I Registration Details Registration No Balance Sheet Date 0 3 4 1 4 0 0 4 3 5 1 0 State Code 0 4   II Capital raised during the year (Amount in Rs. O N F I P A. Advances on Capital Account. E A.

Inox Infrastructure Private Limited INOX INFRASTRUCTURE PRIVATE LIMITED 3RD ANNUAL REPORT 2009-2010 BOARD OF DIRECTORS Shri Pavan Jain Shri Vivek Jain Shri Deepak Asher Director Director Director AUDITORS M/s. New Delhi . 23. Patankar & Associates Chartered Accountants REGISTERED OFFICE 612-618. Barakhamba Road.110 001 94 annual report 2009-10 . Narayan Manzil 6th Floor.

00 0. 1956. if made. annual report 2009-10 95 .00 4.10 126.10 103.01 0.28 6.88 0. 4. FINANCIAL RESULTS: Amount (Rs.14 56.14 (25.00 0. Due notice has been received from them that their appointment.00 18. HOLDING COMPANY Gujarat Fluorochemicals Limited is your Company’s Holding Company. will be in accordance with the limit specified in Section 224 (1B) of The Companies Act.10 70. in lacs) Particulars Income Dividend from Current Investments Interest on Bank Deposits Interest on Current Investments Profit on sale of long term investments Liabilities written back 0.00 0.75 Profit or Loss before tax Provision for Tax Profit for the year Profit/(Loss) brought forward from previous year Balance carried to Balance Sheet 31. They hold office upto the conclusion of this Annual General Meeting.85 2. Patankar & Associates were appointed as first Auditors of the Company by the Board of Directors.04) 79.74 15.75 0.00 0. 1.35 122.Inox Infrastructure Private Limited Directors’ Report To the Members of INOX INFRASTRUCTURE PRIVATE LIMITED Your Directors are pleased to submit their third report on the working of your Company for the year ended on 31st March.25 104.50 24.03 Expenses Legal and Professional Expenses Interest on overdraft Rate and Taxes Miscellaneous Expenses Depreciation and Amortization 1. 1956.00 34.15 0. AUDITORS M/s. 3.11 0.39 18. 2010. AUDITORS’ REPORT The notes forming part of the accounts are self-explanatory and do not call for any further clarifications under Section 217(3) of the Companies Act.23 4.74 2009-2010 2008-2009 2.50 0.29 0.78 79.00 0.00 0.

ACKNOWLEDGEMENT Your Directors express their gratitude to all other external agencies for the assistance. co-operation and guidance received. Directors responsibility statement: As required by the provisions of Section 217(2AA) of the Companies Act. The Directors have prepared the Annual Accounts on a going concern. b.Inox Infrastructure Private Limited 5. PARTICULARS OF EMPLOYEES There are no employees drawing remuneration in excess of the limits prescribed under the amended Section 217(2A) of the Companies Act. 6. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. 1956. 1956. 7. In the preparation of the Annual Accounts. d. The Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that 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. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. your Directors confirm the following: a. 1975. read with the Company’s (Particulars of Employees) Rules. the applicable Accounting Standards have been followed. By Order of the Board of Directors Noida 22nd May. 2010 Vivek Jain Director Deepak Asher Director 96 annual report 2009-10 . c.

in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet. In our opinion. 3. 107628W annual report 2009-10 97 . Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining. We conducted our audit in accordance with auditing standards generally accepted in India. the Balance Sheet. 2010 S. We believe that our audit provides a reasonable basis for our opinion. Dated : 22nd May. In our opinion. 1956. the said accounts.Inox Infrastructure Private Limited Auditor’s Report TO THE MEMBERS OF INOX INFRASTRUCTURE PRIVATE LIMITED 1. 1956. 2003 issued by the Central Government of India in terms of section 227(4A) of the Companies Act. S. 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. In the case of Cash Flow Statement. we report that none of the director is disqualified as on 31st March. of the profit for the year ended on that date. In our opinion and to the best of our information and according to the explanations given to us. Chartered Accountants 2. which to the best of our knowledge and belief were necessary for the purposes of our audit. An audit also includes assessing the accounting principles used and significant estimates made by management. we report that: (i) We have obtained all the information and explanations. These financial statements are the responsibility of the Company’s management. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. 49051 Firm Reg No. Agrawal Partner Membership No. Further to our comments in the Annexure referred to above. (ii) (iii) (iv) (v) (vi) Place : Pune. in the case of the Profit and Loss Account. 1956. On the basis of written representations received from the directors as on 31st March. For Patankar & Associates. of the state of affairs of the Company as at 31st March. 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. 2010 and taken on record by the Board of Directors. 1956. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. 2010. we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. 4. As required by the Companies (Auditor’s Report) Order. The Balance Sheet. read together with the notes thereon. Our responsibility is to express an opinion on these financial statements based on our audit. give the information required by the Companies Act. as well as evaluating the overall financial statement presentation. of the cash flows for the year ended on that date. on a test basis. We have audited the attached Balance Sheet of Inox Infrastructure Private Limited as at 31 st March. evidence supporting the amounts and disclosures in the financial statements.

for a period of more than six months from the date they became payable. There are no dues of Income tax. Sales tax. The Company is not a chit fund or a nidhi/mutual benefit fund/society. 14. as at the end of the year. In our opinion. These fixed assets have been physically verified by the management at reasonable intervals and no discrepancies have been noticed on such verification. proper records have been maintained of the transactions and timely entries have been made therein. There is no inventory and hence the provisions of clause 4(ii) of the Companies (Auditor’s Report) Order. In our opinion. 1956 for activities of the company. Service tax. 2. Therefore. Wealth-tax. The Company has not granted or taken any loan. During the course of our audit. 2003 are not applicable to the Company. there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of fixed assets. 2003. The investments are held by the Company in its own name. no major weakness has been noticed in the internal control systems in respect of this area. Employee’s State Insurance. Investor Education & Protection fund. No undisputed amounts payable in respect of Income-tax. 5. Excise duty or Cess which have not been deposited on account of disputes. There are no transactions of purchase of inventory and sale of goods and services during the year. 15. 16. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. we state as under: 1. 2003 are not applicable to the Company. The Company is regular in depositing with appropriate authorities undisputed statutory dues in respect of income-tax and other material statutory dues applicable to it. Wealth tax. According to information and explanation given to us. No payments were due in respect of Provident Fund. 1956. In our opinion. 3. 8. the Company has an internal audit system commensurate with the size and nature of its business. 2003 are not applicable to the Company. there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act. The Company has not granted loans and advances on the basis of security by way of pledge of shares. to/from the parties covered in the register maintained under section 301 of the Companies Act. 98 annual report 2009-10 . the Company has not given any guarantee for loans taken by others from banks and financial institutions. The Central Government has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act. Service tax. 12. Custom duty. Excise duty and Cess were in arrears. Customs duty. 7. 2003 are not applicable to the Company. debentures or other securities. secured or unsecured. The Company has not accepted any deposits from the public within the meaning of section 58A. 11. 13. 2010 In term of the Companies (Auditor’s Report) Order. The Company has not availed of any term loans during the year and hence the provisions of clause 4(xvi) of the Companies (Auditor’s Report) Order.Inox Infrastructure Private Limited ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR’S REPORT TO THE MEMBERS OF INOX INFRASTRUCTURE PRIVATE LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. Wealth tax. on the basis of information and explanation given to us and the books and records examined by us in the normal course of audit and such checks as we considered appropriate. Sales tax. 1956. The Company has made investment in shares and units of mutual funds in the course of its investment activities. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets (classified as investment property). The Company has been registered for a period of less than five years and hence the provisions of clause 4(x) of the Companies (Auditor’s Report) Order. 2003 are not applicable to the Company. The Company does not have any borrowings from financial institutions or bank or by way of debentures issued and hence the provisions of clause 4(xi) of the Companies (Auditor’s Report) Order. Customs duty. 2003 are not applicable to the Company. There is no disposal of fixed assets during the year. 58AA or any other relevant provisions of the Companies Act. 1956 and the Rules framed there under and hence the provisions of clause 4(vi) of the Companies (Auditor’s Report) Order. to the best of our knowledge and belief. In our opinion. 6. Service tax. 9. 10. 4. Sales-tax. Excise duty and Cess.

No fraud on or by the company was noticed or reported during the course of our audit. 2003 are not applicable to the Company. 49051 Firm Reg No. Chartered Accountants Place : Pune. S. 2010 S. 21.Inox Infrastructure Private Limited 17. For Patankar & Associates. Agrawal Partner Membership No. During the year the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. 20. 107628W annual report 2009-10 99 . 1956. 2003 are not applicable to the Company. Dated : 22nd May. 19. There are no debentures issued and outstanding during the year and hence the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order. The Company has not raised any money by way of public issues during the year. The Company has not raised funds on short term basis during the year and hence the provisions of clause 4(xvii) of the Companies (Auditor’s Report) Order. 18.

57.79.000 1.87. 2010 Particulars SOURCES OF FUNDS : Shareholder’s Funds Capital Reserves and Surplus Total APPLICATION OF FUNDS : Investments Current Assets.879) 50. S.00.99.00.836 51.53.00.917 50. As at 31-3-2009 Rs.87.915 15.503 (7.00.365 16.79.000 A B 50.00.57. Loans and Advances Cash & Bank Balances Other Current Assets Loans & Advances C D 6.82.121 50. 2010 DEEPAK ASHER Director 100 annual report 2009-10 .624 0 0 1. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.03.89.03.33.11.04. 2010 For Inox Infrastructure Private Limited VIVEK JAIN Director Place : Noida Dated : 22nd May.39.86.624 35.07.03.10.87.000 79.190 4.753 50.000 15.10.753 51.23.060 9.00.443 9.Inox Infrastructure Private Limited Balance Sheet as at 31 st March.43.576 15.753 22.121 1.43.00.87.96.941 Current Liabilities & Provisions Current Liabilities Provisions E 10. AGRAWAL Partner Place : Pune Dated : 22nd May.105 Net Current Assets Total Notes to Accounts F 15.10.121 Schedule As at 31-3-2010 Rs.

26.000 1.74.10.121 1.87.29.73.75.on inter corporate deposit .729 0 70.639 31.121 0. INCOME Dividend from Current Investments Interest Income .228 2.50.298 0 34.35.Inox Infrastructure Private Limited Profit and Loss Account for the year ended 31 st March.578 0 0 10.632 79.03.14.000 0 366 85.25.current investments Profit on sale of long term investments Other Income 0 18.50.292 (25.39.14. AGRAWAL Partner Place : Pune Dated : 22nd May.27.492 885 0 4.271 EXPENDITURE Legal & Professional Fees Rates and Taxes Interest on bank overdraft Miscellaneous expenses Depreciation and Amortization Total Profit before taxation Less: Provision for Current Tax Profit after taxation Profit / (Loss) brought forward from previous year Balance Carried to Balance Sheet Basic and Diluted Earnings per share of Rs.04.045 75.000 1.03.77.171) 79.21 56.151 2008-2009 Rs.11. 10 each Notes to Accounts F 1.632 6.000 24. 2010 For Inox Infrastructure Private Limited VIVEK JAIN Director Place : Noida Dated : 22nd May.753 0.15.05 23. 2010 Particulars Schedule 2009-2010 Rs.060 0 4. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.on bank deposits .292 18. 2010 DEEPAK ASHER Director annual report 2009-10 101 . S.10.04.973 15.437 1.22.

00.624 6.50.145) (15.933) 0 (20.000) 0 1.04.50.87.11.13.492) (4.000) 0 0 70.699) (71.09.16.103.75.27.973) (15.85.29.557) (9.578 10.Inox Infrastructure Private Limited Cash Flow Statement for the year ended 31 st March.43.973 (21. 31.25.14.719 (1.24.550 40.578) 0 411. 2010 DEEPAK ASHER Director 102 annual report 2009-10 .298 (1.11.201) 0 0 19.29.39.53. S.945) (57.73.492) (3.130 8.548 1. 2010 Particulars A Cash flow from operating activities Net profit before tax Adjustments for : Depreciation and amortization Dividend received Interest received Loss on sale of long term investments (net) Interest paid Operative profit/(loss) before working capital changes Adjustments for : Trade payables Cash generated from operations Income Tax Paid (Net) Net cash generated/(used) in operating activities B Cash flow from investing activities Sale of Current investments Purchase of Current investments Sale of Long-term Investments Purchase of Long-term Investments Purchase of Investment Property Intercorporate Deposit given Dividend received Interest received Net cash generated/(used) in investment activities C Cash flow from financing activities Interest paid Net cash generated/(used) in financing activities Net increase/(decrease) in cash and cash equivalent Cash and cash equivalents as at the beginning of the year Cash and cash equivalents as at the end of the year As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.86.43.00.741 1.02.000) (27.90.22.365 (4.26.68. 2010 For Inox Infrastructure Private Limited 2009-2010 Rs.298) 0 (1.809) 2008-2009 Rs.87.292 0 (70.14.07. AGRAWAL Partner Place : Pune Dated : 22nd May.924) 4.644) (9.00.151) (56.151 56.397 7.411) 10.769 0 0 5. 1.624 VIVEK JAIN Director Place : Noida Dated : 22nd May.77.71.00.632 85.492 (13.528) (2.00.190.228 0 (18.

000 3.96. SUBSCRIBED AND PAID UP : 5.000 50. at cost.00.71.316 2.69.469 1.00.48.145 0 Depreciation/Amortization As at 1-Apr-09 0 0 0 0 For the year 7.03.389 12.800 9.00.37.10. As at 31-3-2009 Rs.000 3.00.67.00.000 Face Value Rs.000 12.10.29.75.066 0 0 0 0 0 0 0 1.04.75. Gujarat Fluorochemicals Limited TOTAL SCHEDULE “B” : RESERVES & SURPLUS Profit and Loss Account Balance as per annexed account As at 31-3-2009 Rs.000 32.753 79.000) In Units of Mutual Funds of Rs.00.694 2.917 As at 31-Mar-09 0 0 0 3. 50.00.694 2.145 0 As at 31-Mar-10 1.75. 10 each Reliance Income Fund-Retail Plan-Growth Option Birla Sun Life Income Plus Growth (Prudent) IDFC Super Saver Income Fund-Investment Plan B-Growth Kotak Bond (Regular) Growth (Prudent) ICICI Prudential Instutional Income Plan Growth DSP Black Rock Strategic Bond Fund Growth ICICI Prudential Flexible Income Plan Premium .00. As at 31-3-2010 No As at 31-3-2009 No As at 31-3-2010 Rs.60 per share (previous year Rs. 2010 As at Particulars 31-3-2010 Rs.75.00.451 1.378 85.18.000 100 0 0 0 0 0 0 1.378 85.00.Dividend 10 10 10 10 10 1.000 annual report 2009-10 103 .75. 2.00.438 14.000 Equity Shares of Rs.01.00.000 50.69.00.000 3.00.02.00.00.00.04.90.00.00.00.68. SCHEDULE “A” : SHARE CAPITAL AUTHORISED : 5.451 1.75.87. Nil .000 50.87.37.42.Previous Year .000 Equity Shares of Rs.00. 1.00.00.Inox Infrastructure Private Limited Schedule Annexed to and Forming part of the Balance Sheet as at 31 st March.220 12. 10 each ISSUED.13.52.00.00.00.850 77.000 3.00.02.000 0 50. 10 each Megnasolance City Private Limited .850 77. Total Investment (a + b) 35.00.00.000 50.71.000 (b) Investment Property (Long term and Non-trade) Particulars Gross Block (at cost) As at 1-Apr-09 Leasehold Land Building Total Previous Year 0 0 0 0 Additions 1. unquoted) Particulars In Equity Shares of Rs.000 50.87.228 0 Net Block As at 31-Mar-10 1.917 50.paid up Rs. 1.00.000 10 50.00.25.121 79.71.999 34.00.90.601 1.52.87.000 32.50 per share) (Including advance call money paid Rs.000 33.121 SCHEDULE “C” : INVESTMENTS (a) Investment in Securities (Long term.753 1.69.000 1.00. 10 each fully paid-up All shares are held by the Holding Company.00.03.228 0 As at 31-Mar-10 7.25.Rs.000 50. Non-trade.

318 10.34.57. considered good by the management) Inter Corporate Deposit .624 GRAND TOTAL SCHEDULE “E” : CURRENT LIABILITIES & PROVISIONS A) Current Liabilities Sundry Creditors .443 9. CASH & BANK BALANCES Cash in hand Balance in current accounts with Scheduled Banks TOTAL OTHER CURRENT ASSETS Interest Accrued TOTAL LOANS & ADVANCES (Unsecured.11. 2010 As at Particulars SCHEDULE “D” : CURRENT ASSETS.503 104 annual report 2009-10 .000 15. As at 31-3-2009 Rs.99.561 19.86.576 16.808 1.714 6.53.43.Dues to Micro and Small Enterprises .00. LOANS & ADVANCES 31-3-2010 Rs.Others 15.816 1.33.872 9.00.651 6.00.190 4.45.39.941 1.23.499 22.current investment TOTAL 15.00.Inox Infrastructure Private Limited Schedule Annexed to and Forming part of the Balance Sheet as at 31 st March.01.57.365 8.105 9.11.624 0 9.43.97.57.576 0 0 7.915 15.915 4.443 9.97.561 2.060 Other Liabilities Total Current Liabilities B) Provisions Provision for Taxation (Net of Taxes Paid) Total Provisions GRAND TOTAL 1.000 0 0 16.872 0 19.86.

ii) In Investment Property Leasehold Land is carried at cost. being the differences between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. comprising of lease premium and expenses on acquisition thereof. 7. On Building. other than temporary. 1. 20. Nil (previous year Rs.000 6.060 22. The provisions for all known liabilities are adequate and not in excess of the amounts reasonably necessary. Figures of the previous year have been regrouped or rearranged.197 6.000 equity shares of Megnasolace City Private Limited is Rs. Nil (previous year Rs. on timing differences. Income on investment is accounted for on accrual basis.000 0 0 2.557) Uncalled amount payable by the Company in respect of 5.87.060 – – Rs. loans and advances are approximately of the values stated if realized in the ordinary course of business. 6.000 25.397. Nil) Rs.00.00.000.000). 2006 and the relevant provisions of the Companies Act. Nil (previous year Rs. sales and material consumption – Not Applicable Contingent liabilities not provided for – Rs.68. 2. to make them comparable with those of the current year. 35. the current assets. in the values of these investments. 1. net of advance call money of Rs. 10. Nil) Rs. (Previous year Rs. 9. 9. 5. 1956.00. Significant accounting policies followed are as under : a) The financial statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules.000 (previous year Rs. Current Investments are carried at lower of the cost and fair value.015 2008-2009 Rs. wherever necessary. Provision for diminution is made to recognise the decline. 2.000) Value of import calculated on CIF basis – Expenditure in foreign currency Earning in foreign exchange Particulars of Payments to Auditors Particulars Statutory Audit Fees Other Services Out of Pocket Expenses Service Tax Total 2009-2010 Rs. Nil) annual report 2009-10 105 . Deferred tax is recognised. Nil) b) 4. production. subject to consideration of prudence. depreciation is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act. Nil (previous year Rs.818 73. 1956 c) Taxes on Income: Income tax expense comprises of current tax and deferred tax. Particulars of capacity.00.13. 11. 2010 1. 1. Building is carried at cost of acquisition. The amount of tax deducted at source on interest received is Rs. Investments: i) In Securities Long Term investments are carried at cost. 3.68.00. 8. In the opinion of the Board of Directors. Cost of leasehold land is amortized over the period of lease. less accumulated depreciation. Nil (previous year Rs. as reduced by accumulated amortisation.Inox Infrastructure Private Limited Schedule F : Notes to Accounts for the year ended 31 st March.00.

is as per annexure.77.00.00. of Equity Shares outstanding at the beginning & at the end of the year (Nos. 1. Real Estate and Property Development. 14.21 15. 1956. 2010 DEEPAK ASHER Director 106 annual report 2009-10 . S. 24.Inox Infrastructure Private Limited Notes to Accounts for the year ended 31 st March. 16. deferred tax asset in respect of such loss is not recognized. 0 31. as a matter of prudent accounting policy. 2010 For Inox Infrastructure Private Limited VIVEK JAIN Director Place : Noida Dated : 22nd May. AGRAWAL Partner Place : Pune Dated : 22nd May.632 50000000 10 0. all the activities of the Company are in India and hence there is a single geographical segment. Related Party Disclosures – (i) Where Control Exists Holding Company – Gujarat Fluorochemicals Limited Inox Leasing & Finance Limited Ultimate Holding Company – There are no transactions with the above parties.2009 32.3. 2009-2010 Rs. 2. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.000 31.000 The Company operates in a single business segment viz. (ii) Other related parties with whom there are transactions: Associate – Megnasolace City Private Limited (iii) Particulars of transactions with the party referred to in (ii) above: A) Transactions during the year Advance Call Money paid B) Amounts Outstanding Investment in Equity Shares (including advance call money paid) 13. 2010 12.00. The Company has long term capital loss as per the provisions of the Income-tax Act.00.) No. Calculation of Earnings Per Share (EPS) Particulars Net Profit as per Profit & Loss Account (Rs. Further. Balance Sheet Abstract and Company’s General Business Profit as required by Part IV of Schedule VI to the Companies Act. 1961 which is eligible to be carried forward and set-off in subsequent years against long term capital gains.2010 32.00.04.00.14. However.292 50000000 10 0.3.05 2008-2009 Rs.) Nominal value per share (Rs) Basic and Diluted EPS (Rs) 2009-2010 Rs.000 2008-2009 Rs.

1956 Balance Sheet Abstract and Company’s General Business Profile I REGISTRATION DETAILS Registration No Balance Sheet Date U 4 5 2 0 0 D L 2 0 0 7 P T C 1 5 7 9 6 3 1 0 3 1 0 Date II Month Year State Code 5 5 CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS THOUSAND) Public Issue N Bonus Issue N I L I L Right Issue N N I I L L Private Placement III POSITION OF MOBILISATION AND DEPLOYLMENT OF FUNDS (AMOUNT IN RS THOUSAND) Total Liabilities 5 Paid-up Capital 5 Secured Loans N I L 0 0 0 0 0 N 1 1 9 4 5 Total Assets 5 1 1 9 4 5 Sources of Funds Reserves & Surplus 1 I 0 L 3 8 8 Unsecured Loans Application of Funds Net Fixed Assets N 1 I 5 L 0 7 8 3 Investments 3 N 5 I 9 L 6 0 5 Net Current Assets Misc.) Total Expenditure 2 4 N 7 7 I 6 8 L + / (-) Profit/(Loss) After Tax Dividend Rate @ % V GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF COMPANY (As per monetary terms) Item Code No (ITC Code) Product Description N A N A annual report 2009-10 107 . THOUSAND) Turnover (Total Income) 3 4 0 0 0 3 0 4 1 .Inox Infrastructure Private Limited Statement Pursuant to Part IV of Schedule VI to the Companies Act. Expenditure Accumulated Losses N IV I L PERFOMANCE OF COMPANY (AMOUNT IN RS. 0 2 0 3 8 5 4 0 0 0 2 + / (-) Profit/(Loss) Before Tax Earning per share (Rs.

Inox Infrastructure Private Limited 108 annual report 2009-10 IN I S TE NT PA IO G E NA LL H A Y LE S FT B BL E E AN N K TH .

Inox Motion Pictures Limited

INOX MOTION PICTURES LIMITED

2ND ANNUAL REPORT

2009-2010
BOARD OF DIRECTORS Shri Deepak Asher Shri Devansh Jain Shri Alok Tandon Director Director Director

AUDITORS M/s. Patankar & Associates Chartered Accountants

REGISTERED OFFICE Viraj Towers, 5th Floor, Next to Andheri Flyover, Western Express Highway, Andheri (East), Mumbai - 400 069.

annual report 2009-10 109

Inox Motion Pictures Limited

Directors’ Report
To the Members of INOX MOTION PICTURES LIMITED Your Directors have pleasure in presenting the Second Annual Report on the operations of the Company together with the audited accounts for the period ended 31st March, 2010. FINANCIAL RESULTS: Particulars For the year ended 31st March, 2010 For the year ended 31st March, 2009

Income Sales and other Income Profit / (Loss) before Tax Less: Provision for Taxation Profit / (Loss) after Tax Add: Profit / (Loss) brought forward from previous year Balance carried to Balance Sheet OPERATION: During the year under review, the Company achieved Sales and other Income of Rs. 40,14,046. Net loss of the company for the year ended 31st March 2010 was Rs. 4,86,79,408. Your Company is optimistic about its growth prospects for the current financial year. DIVIDEND: Your Directors have not recommended payment of dividend for the year under review in view of losses incurred by the Company. DIRECTORS RESPONSIBILITY STATEMENT: As required by the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors confirm the following: a. b. c. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed. The Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. The Directors have prepared the Annual Accounts on a going concern basis. 40,14,046 (4,86,79,408) NIL (4,86,79,408) (8,33,120) (4,95,12,528) NIL (8,33,120) NIL (8,33,120) N.A. (8,33,120)

d.

DIRECTORS: Mr. Alok Tandon, Director of the Company retire by rotation at the ensuing Annual General Meeting and being eligible, offer himself for reappointment. AUDITOR: M/s. Patankar & Associates, Chartered Accountants, Auditors of the Company retire at the Annual General Meeting and being eligible, offer themselves for re-appointment. AUDITORS’ REPORT: Observation made in the Auditor Report are self explanatory and therefore, do not call for any further comments under section 217(3) of the Companies Act,1956. PERSONNEL: The Company doesn’t have any employees. Hence, no particulars as specified under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 as amended have been furnished in this regard.

110 annual report 2009-10

Inox Motion Pictures Limited
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO: Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is given herein below. 1. Conservation of Energy: The operations of the Company are not energy-intensive. A conscious effort is being made by the Company in reducing the wastage of scarce energy resources. 2. Research & Development: a. b. c. d. 3. Specific areas in which R & D is carried out by the Company: Benefits derived as a result of the above R & D: Future plan of action: Expenditure of R & D: None N.A. N.A. N.A.

Technology Absorption, Adaptation and Innovation: The Company has not absorbed, adapted or innovated any new technology during the period ended on 31st March 2010.

4.

Foreign Exchange Earnings & Outgo The foreign exchange earnings & outgo during the period ended 31st March 2010 was NIL. By Order of the Board of Directors

Place: Mumbai Dated: 21st May, 2010

Deepak Asher Director

Devansh Jain Director

annual report 2009-10 111

We conducted our audit in accordance with auditing standards generally accepted in India. 2010 and taken on record by the Board of Directors. in the case of the Profit and Loss Account. give the information required by the Companies Act. evidence supporting the amounts and disclosures in the financial statements. We believe that our audit provides a reasonable basis for our opinion. we report that: (i) We have obtained all the information and explanations. Chartered Accountants 2. 107628W 112 annual report 2009-10 . For Patankar & Associates. Further to our comments in the Annexure referred to above. 1956. the said accounts. 1956. In our opinion and to the best of our information and according to the explanations given to us. We have audited the attached Balance Sheet of Inox Motion Pictures Limited as at 31st March. An audit includes examining. as well as evaluating the overall financial statement presentation. 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. As required by the Companies (Auditor’s Report) Order. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. 3. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. (ii) (iii) (iv) (v) (vi) Place : Pune Dated : 21st May. In our opinion. which to the best of our knowledge and belief were necessary for the purposes of our audit. In our opinion. of the cash flows for the year ended on that date. In the case of Cash Flow Statement. of the state of affairs of the Company as at 31st March. read together with the notes thereon. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act.Inox Motion Pictures Limited Auditor’s Report TO THE MEMBERS OF INOX MOTION PICTURES LIMITED 1. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet. 1956. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 2010. An audit also includes assessing the accounting principles used and significant estimates made by management. we report that none of the director is disqualified as on 31st March. 2003 issued by the Central Government of India in terms of section 227(4A) of the Companies Act. of the loss for the year ended on that date. On the basis of written representations received from the directors as on 31st March. 2010 (S S Agrawal) Partner Membership No. Our responsibility is to express an opinion on these financial statements based on our audit. The Balance Sheet. These financial statements are the responsibility of the Company’s management. 1956. we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. 4. on a test basis. the Balance Sheet. 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. 49051 Firm Reg No.

20. During the course of our audit. Custom duty. 2003 are not applicable to the Company. 3. the Company has not given any guarantee for loans taken by others from banks and financial institutions. 1956. Sales-tax. 2003 are not applicable to the Company. The Company is not a chit fund or a nidhi/mutual benefit fund/society. Chartered Accountants (S S Agrawal) Partner Membership No. 2003 are not applicable to the Company. Wealth-tax. 13. Excise duty and Cess. In our opinion. 19. 18. The Company has not granted loans and advances on the basis of security by way of pledge of shares. No undisputed amounts payable in respect of Income-tax. The Company has not availed of any term loans during the year and hence the provisions of clause 4(xvi) of the Companies (Auditor’s Report) Order. 9. Excise duty or Cess which have not been deposited on account of disputes. The Company has been registered for a period of less than five years and hence the provisions of clause 4(x) of the Companies (Auditor’s Report) Order. 2010 annual report 2009-10 113 . 2010 In term of the Companies (Auditor’s Report) Order. securities. 49051 Firm Reg No. Investor Education & Protection fund. financial institutions and by way of debentures. 2. Therefore. During the year the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. Employee’s State Insurance. The provisions of clause 4(vii) of the Companies (Auditor’s Report) Order.Inox Motion Pictures Limited ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR’S REPORT TO THE MEMBERS OF INOX MOTION PICTURES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 8. The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act. Customs duty. Sales tax. 6. there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act. In our opinion. There are no debentures issued and outstanding during the year and hence the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order. Service tax. 2003. we state as under: 1. Excise duty and Cess were in arrears. 17. secured or unsecured. debentures and other investments and hence the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order. as at the end of the year. Wealth tax. 14. The Company has maintained proper records showing full particulars of such fixed asset. 7. The Company has not granted or taken any loan. 1956. 16. 58AA or any other relevant provisions of the Companies Act. 2003 are not applicable to the Company. There is no disposal of fixed asset during the year. no major weakness has been noticed in the internal control systems in respect of these areas. for a period of more than six months from the date they became payable. there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of fixed assets and for the sale of services. Customs duty. The Company has not raised any funds on short term basis and hence the provisions of clause 4(xvii) of the Companies (Auditor’s Report) Order. Service tax. The Company has not accepted any deposits from the public within the meaning of section 58A. to/from the parties covered in the register maintained under section 301 of the Companies Act.1956 and the Rules framed there under and hence the provisions of clause 4(vi) of the Companies (Auditor’s Report) Order. 10. 12. No fraud on or by the company was noticed or reported during the course of our audit. 2003 are not applicable to the Company. The Company is not dealing or trading in shares. to the best of our knowledge and belief. 2003 are not applicable to the Company. 2003 in respect of internal audit system are not applicable to the Company. According to information and explanation given to us. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. The Company is regular in depositing with appropriate authorities undisputed statutory dues in respect of income-tax and other material statutory dues applicable to it. There is no inventory and hence the provisions of clause 4(ii) of the Companies (Auditor’s Report) Order. Fixed assets of the Company comprises of only intangible asset. 2003 are not applicable to the Company. The Company has not raised any money by way of public issues during the year. 15. 21. Sales tax. 1956. 5. Service tax. There are no dues of Income tax. For Patankar & Associates. 1956 for activities of the company. debentures or other securities. No payments were due in respect of Provident Fund. 4. The Company has not taken any loans from banks. 107628W Place : Pune Dated : 21st May. 2003 are not applicable to the Company. 11. on the basis of information and explanation given to us and the books and records examined by us in the normal course of audit and such checks as we considered appropriate. Wealth tax.

00. 2010 DEVANSH JAIN Director 114 annual report 2009-10 .25.92.123 (3.000 3.000 40.74.87. As at 31–3–2009 Rs.120 5.90. 2010 For Inox Motion Pictures Limited DEEPAK ASHER Director Place : Mumbai Dated : 21st May.00.00.10.63. Loans and Advances Sundry Debtors Cash & Bank Balances Loans & Advances D E F 8.25.000 5.319 Net Current Assets Profit & Loss Account Balance as per annexed account Total Notes to Accounts I 4.22.95.000 As at 31–3–2010 Rs.120) – 4. S.25.528) 8.000 – 5.000 – 8.00.311 2.123 – 8.528 5. 2010 Schedule Particulars SOURCES OF FUNDS : Shareholders’ Funds Capital Loan Funds Unsecured Loan Total APPLICATION OF FUNDS : Fixed Assets Gross Block Less: Amortization Net Block Current Assets.000 5.Inox Motion Pictures Limited Balance Sheet as at 31 st March.25.33.003 – 4.000 – – – B 2.00.00.00.74.003 C 4.25.00.33.92.319 – 22.12. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.501 1.00.51.000 – (10.01.000 A 3. AGRAWAL Partner Place : Pune Dated : 21st May.979 12.60.791 Less: Current Liabilities & Provisions Current Liabilities Provisions G 22.00.

Inox Motion Pictures Limited

Profit and Loss Account for the year ended 31 st March, 2010
Particulars Schedule Year ended 31.3.2010 Rs. Period ended 31.3.2009 Rs.

INCOME Income from Movie Rights Film Distribution Revenue 36,94,833 1,74,994 38,69,827 Interest on Intercorporate Deposit (Tax deducted at source – Rs. 14,422) 1,44,219 40,14,046 EXPENDITURE Amortization of cost of Movie Rights Operating & Other Expenses Interest on Intercorporate Deposit Total Loss for the year Add: Balance of Loss brought forward Loss Carried to balance sheet Basic and Diluted Earnings per share of Rs. 10 each Notes to Accounts I C H 3,60,90,000 1,53,92,766 12,10,688 5,26,93,454 (4,86,79,408) (8,33,120) (4,95,12,528) (20.90) – 8,33,120 – 8,33,120 (8,33,120) – (8,33,120) (16.66) – – – – –

As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S. S. AGRAWAL Partner Place : Pune Dated : 21st May, 2010 For Inox Motion Pictures Limited

DEEPAK ASHER Director Place : Mumbai Dated : 21st May, 2010

DEVANSH JAIN Director

annual report 2009-10 115

Inox Motion Pictures Limited

Cash Flow Statement for the year ended 31 st March, 2010
For year ended 31-Mar-10 Rupees A Cash flow from operating activities Net loss before tax and extraordinary items Adjustments for : Amortization of movie rights Interest received Interest paid 3,60,90,000 (1,44,219) 12,10,688 3,71,56,469 Operating profit before working capital changes Adjustments for : Trade and other receivables Trade payables (9,03,868) 14,49,196 5,45,328 Cash generated from operation Direct taxes paid (net) Net cash from/(used in) operating activities B Cash flow from investing activities Acquisition of intangible asset – Movie Rights Interest received Net cash from/(used in) investment activities C Cash flow from financing activities Shares issued Inter–corporate Deposit received (net) Inter–corporate Deposit given Inter–corporate Deposit received back Interest paid Net cash (used in)/from financing activities Net increase in cash and cash equivalent Opeing cash and cash equivalents Closing cash and cash equivalents
As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S. S. AGRAWAL Partner Place : Pune Dated : 21st May, 2010 For Inox Motion Pictures Limited

For period ended 31-Mar-09 Rupees (8,33,120) – – – – (8,33,120) – 8,25,123 8,25,123 (7,997) – (7,997)

(4,86,79,408)

(1,15,22,939)

(1,09,77,611) (84,422) (1,10,62,033)

(4,01,00,000) 1,44,219 (3,99,55,781)

– – –

2,95,00,000 2,25,00,000 (80,00,000) 80,00,000 (12,10,688) 5,07,89,312 (2,28,502) 4,92,003 2,63,501

5,00,000 – – – – 5,00,000 4,92,003 – 4,92,003

DEEPAK ASHER Director Place : Mumbai Dated : 21st May, 2010

DEVANSH JAIN Director

116 annual report 2009-10

Inox Motion Pictures Limited

Schedule Annexed to and Forming part of the Balance Sheet as at 31 st March, 2010
Particulars As at 31-3-2010 Rs. As at 31-3-2009 Rs.

SCHEDULE “A” : SHARE CAPITAL AUTHORISED : 1,00,00,000 Equity Shares of Rs. 10 each ISSUED, SUBSCRIBED AND PAID UP : 300,000 ( Previous Year 50,000) Equity Shares of Rs.10 each fully paid–up (all shares are held by the Holding Company – Gujarat Fluorochemicals Limited) TOTAL SCHEDULE “B” : UNSECURED LOANS Inter–Corporate Deposit – from Holding Company TOTAL 2,25,00,000 2,25,00,000 – – 3,00,00,000 5,00,000 3,00,00,000 5,00,000 10,00,00,000 10,00,00,000

SCHEDULE C : FIXED ASSETS Particulars As at 1.4.2009 Intangible Asset: Movie Rights Total Previous Year – – – 4,01,00,000 4,01,00,000 – 4,01,00,000 4,01,00,000 – – – – 3,60,90,000 3,60,90,000 – 3,60,90,000 3,60,90,000 – 40,10,000 40,10,000 – – Gross Block Additions As at 31.3.2010 As at 1.4.2009 Depreciation/Amortization For the Year As at 31.3.2010 Net Block As at 31.3.2010 As at 1.4.2009

Particulars

As at 31-3-2010 Rs.

As at 31-3-2009 Rs.

SCHEDULE “D” : SUNDRY DEBTORS (Unsecured, considered good by the Management) Exceeding 6 months Others TOTAL SCHEDULE “E” : CASH & BANK BALANCES Cash in hand Balance in current account with Scheduled Bank TOTAL – 2,63,501 2,63,501 4,460 4,87,543 4,92,003 5,06,047 2,94,264 8,00,311 – – –

annual report 2009-10 117

996 22.479 1.70.3.123 – 8.747 52.578 8.79.74.120 SCHEDULE “H” : Operating and other Expenses Film Distributors’ Share Reimbursement of Salary Advertising & Sales Promotion Print Despatch & Other Expenses Print Cost Legal & Professional Fees & Expenses Communication Expenses Insurance Travelling & Conveyance Rates & Taxes Membership & Subscription Rent Preliminary Expenses written off Miscellaneous expenses 118 annual report 2009-10 . Schedule Annexed to and Forming part of the Profit and Loss Account for the year ended 31 st March.92.030 8.093 13.14.097 1.230 21.030 – – – – – – 8.53.848 1.74.323 Other Liabilities TOTAL 1.33. 40.319 – 8.41.58.3.72.271 1.2009 Rs.322 23.2010 Rs.422 1.08. considered good by the Management) Advances recoverable in cash or in kind or for value to be received Deposit Tax Deducted at Source TOTAL SCHEDULE “G” : CURRENT LIABILITIES Sundry Creditors – Due to Micro and Small Enterprises – Due to Holding Company – Gujarat Flurochemicals Ltd.557 25.492 7. – – – – – 11.01.300 37. – Due to others – 8.766 As at 31.03.17. SCHEDULE “F” : LOANS AND ADVANCES (Unsecured. 2010 Particulars As at 31.975 60.132 7.123 78. 2010 As at 31-3-2010 Rs.525 38.14.000 – 53.Inox Motion Pictures Limited Schedule Annexed to and Forming part of the Balance Sheet as at 31 st March.33.25.093 4.997 8.87.000 84.093 11.25.979 – – – – As at 31-3-2009 Rs.

Income from Film Distribution is recognized as and when the movie is exhibited. Nil ( Previous Year Rs Nil ) Rs. Particulars Statutory Audit Fees Service Tax Total Amounts (Rs. d) Amortization: The cost of movie rights acquired is amortised using the individual film forecast method. All other borrowing costs are charged to revenue. which are outstanding as at 31st March. 3.575 27. f) Taxes on Income: Deferred tax is recognised. 2008 to 31st March 2009 and hence not directly comparable with the figures of the current year. being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Nil ( Previous Year Rs Nil ) Rs. 7. production. 5. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.Inox Motion Pictures Limited Schedule I : Notes to Accounts for the year ended 31 st March. Further no interest is paid / payable in the terms of section 16 of the said Act. in terms of the agreement. Under this method costs are amortised in proportion to management’s estimate of gross revenues expected to be realised over a period.030 annual report 2009-10 119 . 9.) 10. c) Fixed Assets: Movie rights acquired are carried at cost of acquisition. Particulars of Payments to Auditor’s 2009-2010 2008-2009 10. 6. video and other rights are recognized from effective date of exploitation of rights or when the rights are made available to the assignee for exploitation. b) Revenue Recognition: In respect of Income from Movie Rights: Revenue from theatrical exhibition is recognized as and when the movie is exhibited. Significant Accounting Policies a) Basis of Accounting: The financial statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules. 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Small and Medium Enterprises Development Act. the current assets. on timing differences. 8. 2010. to whom the Company owes dues. Revenue from film’s satellite.) 25.000 2. The provisions for amortization and all known liabilities are adequate and not in excess of the amounts reasonably necessary. sales and material consumption Contingent liabilities not provided for Value of import calculated on CIF basis Expenditure in foreign currency Earning in foreign exchange – – – – – Not Applicable Rs. 2010 Schedule I: Notes to accounts for the year ended 31st March 2010 1. 2. In the opinion of the Board. Nil ( Previous Year Rs Nil ) Rs.030 11. less accumulated amortization.000 1. 2006 and the relevant provisions of the Companies Act. Figures of the previous year are for the period from 1st October. This information as required to be disclosed under the Micro. There are no Micro and Small Enterprises. subject to consideration of prudence. 1956.575 Amounts (Rs. loans and advances are approximately of the values stated if realized in the ordinary course of business. e) Borrowing Cost: Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Nil ( Previous Year Rs Nil ) 4. Particulars of capacity.

219 40. Nil) Rs. Nil) 12. The Company is entitled to carry forward its business loss as per the provisions of the Income-tax Act. 8. 1961 and consequently has a net deferred tax asset as on 31st March 2010.524) 85.00.74.000 (Previous Year Rs.60. 80.14.564 (Previous Year Rs. Nil) Rs.Inox Motion Pictures Limited 11.994 1.688 (Previous Year Rs. No I Particulars Segment Revenue a. the same is not recognized. b.86. b.120) 2009-2010 2008-2009 14. Nil) Rs.10.00.000 (Previous Year Rs. Nil) Rs.392 (Previous Year Rs.00.01.000 (Previous Year Rs Nil) Rs 75.33.09. With Gujarat Fluorochemicals Limited Issue of Equity Shares Inter-Corporate Deposit received Inter-Corporate Deposit repaid Interest paid Reimbursement of expenses paid With Inox Leisure Ltd Purchase of Movie Rights Interest received Inter-corporate Deposit given Inter-corporate Deposit received back Rent paid Reimbursement of expenses paid Film Distribution Share received Amounts outstanding To Gujarat Fluorochemicals Limited: Inter-Corporate Deposit Received Other amount payable To Inox Leisure Limited – – – – – – – – – – – – Rs. Nil) Rs.000 (Previous Year Rs Nil) Rs 12. 80. c.95. Nil) Rs Nil (Previous Year Rs 8. c.76.000 (Previous Year Rs 5. Related Party Disclosures – (i) Where Control Exists Holding Company – Gujarat Fluorochemicals Limited Ultimate Holding Company – Inox Leasing and Finance Limited Other related parties with whom there are transactions Fellow Subsidiary – Inox Leisure Limited Particulars of transaction during the year – a.093) Rs 8.23. 1.14. 2.833 1.000 Nil Nil 13.33.408) Nil Nil Nil (8.785 (4. 14. – – – Rs 2. 60.739) (44. Nil) (ii) (iii) b.00. 4. a company under the same management: Particulars Amount outstanding Maximum Balance during the year 2009-2010 2008-2009 Nil 80.25.00.00.74.30.000 (Previous Year Rs.120) Nil (8.093) Rs.79.44.688) (4.44. 8.000) Rs 3.00. Total Segment revenue II Segment Result a.75. However.00.219 (Previous Year Rs. Nil) Rs.000 (Previous Year Rs.046 Nil Nil Nil Nil Nil (4.328 (Previous Year Rs.14.14. Segment Reporting : Sr.981) (12.093 (Previous Year Rs.94.00. Particulars of dues from Inox Leisure Limited.00.10. Nil) Rs. in view of absence of virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.000 (Previous Year Rs. 8. Movie Production Film Distribution Total Segment result Less: Un-allocable expenses (net of un-allocable income) Less: Interest expenses Total Loss for the year 120 annual report 2009-10 . Movie Production Film Distribution Corporate 36.

E.00.01.319 4.Inox Motion Pictures Limited Sr. ii.86. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.000 29.33.50.90.25. The Company operates in following business segments i.671 96.25. Movie Production Film Distribution Un-allocable and Corporate Total Capital Expenditure a.00.92.000 3.92.000 30. B.708 2.408 50. 2010 DEVANSH JAIN Director annual report 2009-10 121 .003 4.000 23.50. Balance Sheet Abstract and Company’s General Business Profit as required by Part IV of Schedule VI to the Companies Act.123 Nil Nil Nil Nil Nil Total Segment Liabilities a. b.66) 16. 15.33.90. No III Particulars Other Information A. AGRAWAL Partner Place : Pune Dated : 21st May.000 4.79. b. Notes: a.61.940 2.000 50.01.003 Nil Nil 8. Movie Production Total Depreciation & Amortization a. c.000 50. Equity shares outstanding at the beginning of the year/period No. Hence the Company is operating in single Geographical segment C. D.011 3.60.123 8.923 52.60.178 10 (20.47. Movie Production Film Distribution Un-allocable and Corporate 2009-2010 2008-2009 48.000 Nil Nil Nil 4. Segment Assets a.29. Movie Production Business – Production and exhibition of Movies and allied income Film Distribution business – Distribution of Movies The above segment information includes the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis Calculation of Earnings Per Share (EPS) Particulars Net loss as per Profit & Loss Account (Rs.000 10 (16. C. S. is as per annexure. B.74. 2010 For Inox Motion Pictures Limited DEEPAK ASHER Director Place : Mumbai Dated : 21st May.791 13. 1956.00. c.) No. b.26.857 22. Equity shares outstanding at the end of the year/period Weighted average number of equity shares outstanding during the year/period Nominal value per share (Rs) Basic and Diluted EPS (Rs) 2009-2010 2008-2009 4. Equity shares issued during the year/period No.72.90) 8. Movie Production Total Non-cash expenses (other than depreciation and amortization) Information about Secondary (Geographical) Segment All the business activities of the company are conducted in India.66.120 50.000 3.

Inox Motion Pictures Limited Statement Pursuant to Part IV of Schedule VI to the Companies Act. 1956 Balance Sheet Abstract and Company’s General Business Profile I REGISTRATION DETAILS Registration No Balance Sheet Date U 9 2 1 2 0 M H 2 0 0 8 P L C 1 8 7 2 3 1 3 1 0 3 1 0 State Code 0 4 Date II Month Year CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS THOUSAND) Public Issue N Bonus Issue N I L I L Right Issue N I 2 L 9 5 0 0 Private Placement III POSITION OF MOBILISATION AND DEPLOYLMENT OF FUNDS (AMOUNT IN RS THOUSAND) Total Liabilities 5 Sources of Funds Paid-up Capital 3 Secured Loans N I L 0 0 0 0 Reserves & Surplus N I 2 L 2 5 0 0 4 7 7 4 Total Assets 5 4 7 7 4 Unsecured Loans Application of Funds Net Fixed Assets 4 Net Current Assets ( -) 1 Accumulated Losses 4 IV 9 5 1 3 0 2 3 0 1 0 Investments N N I I L L Misc. THOUSAND) Turnover (Net) 4 (-) 4 (-) 2 8 0 0 6 . Expenditure PERFOMANCE OF COMPANY (AMOUNT IN RS. 1 7 9 4 9 0 + / (-) Profit/(Loss) Before Tax Earning per share (Rs.) Total Expenditure 5 (-) 4 2 8 6 6 N 9 7 I 3 9 L + / (-) Profit/(Loss) After Tax Dividend Rate @ % V GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF COMPANY (As per monetary terms) Item Code No (ITC Code) Product Description Item Code No (ITC Code) Product Description N A P R O D U C T I O N 0 O F 0 M O V I E S N A F I L M 0 D I S T R I B U T I O N 122 annual report 2009-10 .

Inox Motion Pictures Limited IN I S TE NT PA IO G E NA LL H A Y LE S FT B BL E E AN N K annual report 2009-10 123 TH .

Patankar & Associates Chartered Accountants REGISTERED OFFICE C/o.Inox Wind Limited INOX WIND LIMITED 1ST ANNUAL REPORT 2009-2010 BOARD OF DIRECTORS Shri Deepak Asher Shri Siddharth Jain Shri Devansh Jain Shri Rajeev Gupta Director Director Director Director AUDITORS M/s. Himachal Pradesh 174103 124 annual report 2009-10 . District Solan. Inox Air Products Limited Village Kunjhal Industrial Area Barotiwala.

1956.74 (124. 2. FINANCIAL MATTERS Following are working results of the Company for the year 2009-10: Rs in Lacs Particulars Income Sales Other Income Total Income Expenses Materials Consumed Manufacturing and Other Expenses Interest Depreciation & Amortisation Total Expenses Profit or Loss before tax Deferred Tax Credit Balance carried to Balance Sheet 3.90 910. 2010.55 785. thereafter.48 19. Notices have been received from the Members of the Company specifying their intention to propose the candidature of Shri Deepak Asher. Shri Siddharth Jain.39) 784. Shri Rajeev Gupta was appointed as an Additional Director of the Company. DIRECTORS Shri PK Jain. the Accounts and the Auditors Report cover the period from 9th April. Shri Devansh Jain and Shri Rajeev Gupta as Directors of the Company. Himachal Pradesh and Chandigarh bearing No. 2009 under Certificate of Incorporation issued by the Deputy Registrar of Companies. Shri VK Jain and Shri Deepak Asher were named as First Directors of the Company in the Memorandum and Articles of Association of the Company. set up manufacturing facilities for wind turbines at Una. AUDITORS’ REPORT The notes forming part of the accounts are self-explanatory and do not call for any further clarifications under Section 217(3) of the Companies Act.U31901HP2009PLC31083 of 2009-10 and had obtained Certificate for Commencement of Business on 15th April.50 2009-10 annual report 2009-10 125 . Shri VK Jain and Shri PK Jain had resigned during the year and in their place Shri Siddharth Jain and Shri Devansh Jain were appointed as Additional Directors of the Company. 1. Shri Deepak Asher. Also. 5. HOLDING COMPANY Gujarat Fluorochemicals Limited (GFL) is your Company’s Holding Company. COMPANY Your Company was incorporated on 09th April. 2010. Shri Siddharath Jain. 2010. Shri Devansh Jain and Shri Rajeev Gupta hold office upto the conclusion of the First Annual General Meeting. The Board recommends their appointment as Directors of the Company. 2009 to 31st March.13) 0. Gujarat.74 164. The report.Inox Wind Limited Directors’ Report To the Members of INOX WIND LIMITED Your Directors are pleased to submit their first report on the working of your Company for the period ended on 31st March. 708. 4. 2010. in pursuance of its business plans. Himchal Pradesh and Bawla. We are pleased to inform you that your Company has commenced commercial production of nacelles and hubs for wind turbines at Una.51 17. on 26th March.95 0. Punjab.63 (125. Your Company has.

Inox Wind Limited
6. AUDITORS M/s. Patankar & Associates were appointed as first Auditors of the Company by the Board of Directors. They hold office upto the conclusion of this Annual General Meeting. Due notice has been received from them that their appointment, if made, will be in accordance with the limit specified in Section 224 (1B) of The Companies Act, 1956. 7. DIRECTORS RESPONSIBILITY STATEMENT: As required by the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors confirm the following: a. b. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed. The Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. The Directors have prepared the Annual Accounts on a going concern basis.

c.

d. 8.

CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO; Information pursuant to Section 217(l)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is given herein below. 1. 2. Conservation of Energy Research & Development a. b. c. d. 3. Specific areas in which R & D is carried out by the Company Benefits derived as a result of the above R & D Future plan of action Expenditure of R & D : : : : None Not Applicable Not Applicable Not Applicable : : Not applicable

Technology Absorption, Adaptation and Innovation: The Company has absorbed and adapted new technology and commenced commercial operations at its Una Plant on 26th March, 2010.

4.

Foreign Exchange Earnings & Outgo Foreign Exchange used : Refer to Note No. 9 of Schedule 15 of Annual Accounts Foreign Exchange earned : Refer to Note No. 10 of Schedule 15 of Annual Accounts

9.

PARTICULARS OF EMPLOYEES In accordance with the provisions of Section 217(2A) of the Companies Act, 1956 and the rules framed there under, the names and other particulars of employees are set out in the Annexure to the Directors’ Report. In terms of the provisions of Section 219(1) (b) (iv) of the Companies Act, 1956, the Directors’ Report is being sent to all the Shareholders of the Company excluding the aforesaid annexure. The annexure is available for inspection at the Registered Office of the Company. Any Shareholder interested in obtaining a copy of the said annexure may write at the Registered Office of the Company.

10.

ACKNOWLEDGEMENT Your Directors express their gratitude to all other external agencies for the assistance, co-operation and guidance received. Your Directors place on record their deep sense of appreciation for the dedicated services rendered by the workforce of the Company. By Order of the Board of Directors

Noida 22nd May, 2010

Deepak Asher Director

Devansh Jain Director

126 annual report 2009-10

Inox Wind Limited

Auditor’s Report
TO THE MEMBERS OF INOX WIND LIMITED 1. We have audited the attached Balance Sheet of Inox Wind Limited as at 31st March, 2010 and also the Profit and Loss Account and the Cash Flow Statement for the period ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor’s Report) Order, 2003 issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: (i) (ii) (iii) (iv) (v) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. On the basis of written representations received from the directors as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the director is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; in the case of the Profit and Loss Account, of the loss for the period ended on that date. In the case of Cash Flow Statement, of the cash flows for the period ended on that date.

2.

3.

4.

(vi)

For Patankar & Associates, Chartered Accountants

Pune Dated : 22nd May, 2010

(S S Agrawal) Partner Membership No. 49051 Firm Reg No. 107628W

annual report 2009-10 127

Inox Wind Limited
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR’S REPORT TO THE MEMBERS OF INOX WIND LIMITED ON THE ACCOUNTS FOR THE PERIOD ENDED 31ST MARCH, 2010 In term of the Companies (Auditor’s Report) Order, 2003, on the basis of information and explanation given to us and the books and records examined by us in the normal course of audit and such checks as we considered appropriate, to the best of our knowledge and belief, we state as under: 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The fixed assets have been physically verified by the management at reasonable intervals and no discrepancies have been noticed on such verification. There is no disposal of fixed assets during the period. 2. The inventories were physically verified by the management at reasonable intervals during the period. In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. In our opinion, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records. 3. The Company has not taken or granted any loan, secured or unsecured, from/to the parties covered in the register maintained under section 301 of the Companies Act, 1956. In our opinion, there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of inventory and fixed assets and for sale of goods. During the course of our audit, no major weakness has been noticed in the internal control systems in respect of these areas. In our opinion, there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956. The Company has not accepted any deposits from the public within the meaning of section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Rules framed there under and hence the provisions of clause 4(vi) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company. The provisions of clause 4(vii) of the Companies (Auditor’s Report) Order, 2003 in respect of internal audit system are not applicable to the Company. The Central Government has prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 for the activities of the Company, to be maintained from the year following the year in which the turnover of the Company exceeds Rs. 10 crores. The Company is generally regular in depositing with appropriate authorities undisputed statutory dues in respect of Provident Fund, Income-tax, Sales tax, Service tax, Customs duty, Cess and other material statutory dues applicable to it, except that there are some delays in payment of Provident Fund, Income-tax and Service tax. No payments were due in respect of Investor Education & Protection fund, Employee’s State Insurance, Wealth tax and Excise duty. No undisputed amounts payable in respect of Income-tax, Wealth-tax, Sales-tax, Service tax, Customs duty, Excise duty and Cess were in arrears, as at the end of the year, for a period of more than six months from the date they became payable. There are no dues of Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty or Cess which have not been deposited on account of disputes. 10. The Company has been registered for a period of less than five years and hence the provisions of clause 4(x) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company. The Company does not have any borrowings from financial institutions or bank and no repayment is due in respect of the debentures issued by the Company. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

4.

5.

6.

7.

8.

9.

11.

12.

128 annual report 2009-10

20. 16. In our opinion. The Company has not raised funds on short term basis during the period and hence the provisions of clause 4(xvii) of the Companies (Auditor’s Report) Order. For Patankar & Associates. Therefore. 15. During the period.Inox Wind Limited 13. 107628W annual report 2009-10 129 . 1956. The investments are held by the Company in its own name. 2010 (S S Agrawal) Partner Membership No. 17. Pune Dated : 22nd May. The Company has not given any guarantee for loans taken by others from banks and financial institutions. the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. Chartered Accountants 14. The debentures issued by the Company are unsecured and hence the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. The Company has made investment in units of mutual funds in the course of its investment activities. proper records have been maintained of the transactions and timely entries have been made therein. 2003 are not applicable to the Company. 18. The Company has not raised any money by way of public issues during the period. The Company has not availed of any term loans during the period and hence the provisions of clause 4(xvi) of the Companies (Auditor’s Report) Order. 19. 21. The Company is not a chit fund or a nidhi/mutual benefit fund/society. No fraud on or by the company was noticed or reported during the course of our audit. 2003 are not applicable to the Company. 49051 Firm Reg No. 2003 are not applicable to the Company. 2003 are not applicable to the Company.

565.405 8.86.77.508 II APPLICATION OF FUNDS 1 Fixed Assets (a) (b) (c) (d) (e) (f) Gross block Less: Depreciation & Amortization Net block Capital work-in-progress Advances on Capital Account Pre-operative expenditure pending allocation 3 363.906 4.464 28.39.06.40.69.71.58.471 3.246 9 10 21. AGRAWAL Partner Place : Pune Dated : 22nd May.35.37.24.ii) Profit and Loss Account Balance as per annexed account TOTAL Notes forming part of accounts As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.019 87.86.85. 2010 DEVANSH JAIN Director 130 annual report 2009-10 .587 78.41.85. 2010 Schedule As at 31-Mar-2010 Rupees I SOURCES OF FUNDS 1 2 Shareholders’ Funds Capital Loan Funds Unsecured Loans TOTAL 1 2 30.21.87.757 2.66.128.944 7.264 21.187 74.358 33.37.52.46.Inox Wind Limited Balance Sheet as at 31 st March.64.07.44.76.46. Loans and Advances (a) Inventories (b) Sundry Debtors (c) Cash and Bank balances (d) Loans and advances Sub-Total (i) Less : Current Liabilities and Provisions (a) Current liabilities (b) Provisions (ii) 4 Sub-Total (ii) Net Current Assets (i .22.680 15.399 36.000 57.55.302 1.687 5.555 3. S.000 5 6 7 8 11.64.508 87.14. 2010 For Inox Wind Limited DEEPAK ASHER Director Place : Noida Dated : 22nd May.66.00.508 15 4 2 3 Deferred Tax Asset (i) Current Assets.46.40.33.86.00.

099 17.884 55.000 (1.50.092 9.94.Net Other Income Total EXPENDITURE Materials Consumed Manufacturing and Other Expenses Interest Depreciation & Amortization 12 13 14 3 7. 10 each Basic Diluted Notes forming part of Accounts 15 (1.48.118 (20.94.84.884 7.137 Loss before tax Less: Deferred Tax Credit Loss for the period after tax carried to Balance Sheet Earnings Per Equity Share of Rs.616 1.90.08. 2010 DEVANSH JAIN Director annual report 2009-10 131 .Inox Wind Limited Profit and Loss Account for the period ended 31 st March.84. 2010 For Inox Wind Limited DEEPAK ASHER Director Place : Noida Dated : 22nd May. 2010 Schedule Period ended 31-Mar-2010 Rupees INCOME Sales .25.85.73. S.64. AGRAWAL Partner Place : Pune Dated : 22nd May.39.51.63.64) (20.13.330 19.10.019) 11 7.64) As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.Gross Less: Excise Duty Sales .234 7.019) 74.24.

90.25.96.78.00.329 90. S.000 47.51.51.092 (55.13.267) (4.17.019) 17.00.43.27.099 (88.00.405) 8.81.492) (10.85.600) (65.84.30.43. 2010 Period ended 31-Mar-2010 Rupees A Cash flow from operating activities Net loss before tax and extraordinary items Adjustments for : Depreciation / Amortization Interest received Interest paid Operating profit/(loss) before working capital changes Adjustments for : Trade and other receivables Inventories Trade payables Cash used in operations Direct taxes paid (tax deducted at source) Net cash from/(used in) operating activities B Cash flow from investing activities Purchase of fixed assets (including change in Capital work-in-progress.76.87.79.802 55. 2010 DEVANSH JAIN Director 132 annual report 2009-10 .802) 10.00.062) (12.00.13.85.00.000 10.000 87.90.00.58.32.00.037) (11.237 (16.76. 2010 For Inox Wind Limited (1.234 (65.Inox Wind Limited Cash Flow Statement for the period ended 31 st March.471 4.79.471 DEEPAK ASHER Director Place : Noida Dated : 22nd May. capital advances and pre-operative expenses) Purchase of current investments Redemption of current investments Dividend received Interest received Net cash from/(used in) investment activities C Cash flow from financing activities Issue of Shares Issue of Debentures Inter-corporate Deposit Received Net cash from/(used in) financing activities Net increase in cash and cash equivalent Closing cash and cash equivalents As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.000 4.234) 19.34.50.929) 30. AGRAWAL Partner Place : Pune Dated : 22nd May.333) (16.

37.54. 2010 As at 31-Mar-2010 Rupees Schedule 1 : Share Capital Authorised Capital 5.43.06.000 Equity Shares of Rs.00.000 Equity Shares of Rs.000 50.Inox Wind Limited Schedule Forming part of the Balance Sheet as at 31 st March.000 7% Unsecured Fully Convertible Debentures of Rs.each.814 3.818 41.65.637 27.46.57.35.36.05.46.084 Total 57.10.604 36.31.634 9.86. PARTICULARS GROSS BLOCK Additions during the period A) Tangible Assets Freehold Land Leasehold Land Building Plant & Machinery Office Equipments including Computers Furniture & Fixtures Vehicles B) Intangible Assets Technical Know-how TOTAL 10.398 2.35.93.000 30.000 2.605 36.88.00.60.05. on 19.Gujarat Fluorochemicals Limited) Total Schedule 2 : Unsecured Loans 10.768 2.001 21.06.33.20.74.00.424 10.2013) Add: Interest accrued and due 10.814 3.90.497 2.399 8.06.88.084 47.00.02.60.07.400 shares are held by the Holding Company .111 3.31.817 12.58.88.93.59.06.93.639 3.002 25.00.152 4.294 1.50.36.508 30.755 5. 10/.71.358 4.00.89.each Issued and Subscribed Capital 3.50.497 2.634 9.00.639 3.14.00.10.817 12. 100 each (optionaly convertible into fully paid equity shares at par after a period of three years from the date of allotment viz.43.59.00.77.65.398 4.382 12.382 12.000 43.818 41.178 12.58.384 26.399 10.000 Schedule 3 : Fixed Assets Amount in Rs.99.00.49.49.05.768 2.46.001 21.65.755 5.29.28.58.00.384 26.59.89.32.754 As at 31st March 2010 DEPRECIATION/AMORTIZATION For the period As at 31st March 2010 NET BLOCK As at 31st March 2010 annual report 2009-10 133 .294 1.04.00.37.757 10.65.93.605 36.29.68.59.637 27.424 Inter-corporate Deposit .152 2.816 9.520 2.28.43.46.71.757 8.869 24.111 3.3.00.111 3.00.258 5.99. 10/.94. fully paid-up (Out of above 2.68.from Holding Company Add: Interest accrued and due 47.59.00.74.54.

considered good by the Management) Exceeding 6 months Others .81.78.92.587 As at 31-Mar-2010 C) Less: Capitalised during the period Closing balance Schedule 5 : Inventories (at lower of cost and net realisable value) Raw Materials Materials in transit Stores and Spares Total Schedule 6 : Sundry Debtors (unsecured.10.864 35.341 12.906 134 annual report 2009-10 .329 1.92.672 2.39.15.378 3.Inox Wind Limited Schedule Forming part of the Balance Sheet as at 31 st March.38.80.85.32.228 1.407 3.682 4.40.515 10.137 3. Allowances and Benefits Contribution to PF and Other Funds Gratuity Staff welfare Legal.652 76.47.202 B) Less: Pre-Operative Income earned during the year Dividend on current investments Profit on sale of current investments 90.07.455 94.19.286 3.495 11.58.61.74.43.802 41.335 41.35.64. Professional and Consultancy Charges Travelling & Conveyance Rent Insurance Power & Fuel Communication Expenses Hire Charges Printing & Stationary Rates & Taxes Security Service Charges Testing Charges Miscellaneous Expenses Interest on inter-corporate deposit Depreciation 1.39. Wages.50.48.07.64.527 1.94.14.889 3.805 9.93.40. 2010 Period ended 31-Mar-2010 Rupees Schedule 4 : Pre-operative expenditure pending allocation A) Expenses incurred during the period Salaries.307 5.12.87.30.52.906 8.292 40.037 2.Due from Holding Company Total 7.32.32.747 8.352 9.017 55.405 8.

734 annual report 2009-10 135 .Inox Wind Limited Schedule Forming part of the Balance Sheet as at 31 st March.66.87.975 21.60.76.73.64.705 Security Deposits Other Liabilities Total Schedule 10 : Provisions For Gratuity For Leave encashment Total 3.69.44.40.06.85. 2010 As at 31-Mar-2010 Rupees Schedule 7 : Cash & Bank balances Cash on Hand With Scheduled Banks in Current accounts Total Schedule 8 : Loans & Advances (unsecured.48.76.81.00.732 4.464 4.309 15.650 4.471 36. considered good by the Management) Advances recoverable in cash or in kind or for value to be received Deposits Balances in VAT Accounts Tax Deducted at Source Total Schedule 9 : Current Liabilities Sundry Creditors -Dues to Micro and Small Enterprises -Others 18.705 18.333 3.73.955 12.749 18.07.737 4.680 3.000 72.264 1.41.03.87.23.25.

59.330 7. Wages.064 33.08.72.45.598 22. 2010 Period ended 31-Mar-2010 Rupees Schedule 11 : Other Income Interest On Bank Fixed Deposits Total 55.550 4.03.02.234 Schedule 12 : Materials Consumed Raw Materials Consumed Total Schedule 13 : Manufacturing and Other Expenses Salaries.234 55.316 3.645 10.430 62.26.616 7.027 2.938 45.11.65.22.441 7.85.17.29.177 27.083 48.161 2.837 1.664 1.64.73.616 136 annual report 2009-10 . Allowances and Benefits Contribution to Provident and other Funds Gratuity Staff Welfare Expenses Stores and Spares Consumed Power & Fuel Rent Rates & Taxes Travelling & Conveyance Hire Charges Royalty Communication Expenses Printing & stationary Security Charges Legal & Professional Fees & Expenses Foreign Exchange Fluctuation Loss (net) Insurance Preliminary Expenses Written Off Miscellaneous Expenses Total Schedule 14 : Interest Interest on Fixed Loans On Inter-corporate Deposit On Debentures Other interest Total 13.51.501 1.756 19.597 53.000 8.19.73.148 2.08.83.23.48.Inox Wind Limited Schedule Forming part of the Profit and Loss Account as at 31 st March.59.099 30.880 60.018 1.598 11.

ii) e) Investments : Current Investments are carried at lower of the cost and fair value. h) Borrowing Cost : Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Deferred tax is recognised. determined on the basis of actuarial valuation techniques. Retirement benefits in the form of Gratuity and Leave Encashment are recognized as an expense in the Profit and Loss Account at the present value of the amounts payable. 1956. and the difference arising out of such conversion is recognised in the Profit and Loss Account. which is carried at cost. on timing differences. Fixed assets costing upto Rs.000 each are fully depreciated in the year of acquisition. 2006 and the relevant provisions of the Companies Act. d) Depreciation and Amortization: i) On tangible fixed assets – Cost of leasehold land is amortized over the period of lease. using the projected unit credit method. SIGNIFICANT ACCOUNTING POLICIES a) Basis of Accounting: The financial statements are prepared under the historical cost convention and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standard) Rules.Inox Wind Limited Schedule 15 : Notes forming part of Accounts of the period ended 31 st March. f) Inventories : Inventories are valued at lower of the cost and net realisable value. annual report 2009-10 137 . Gains or Losses on settlement of the transactions are recognised in the Profit and Loss Account. The deferred tax in respect of timing differences which reverse during the tax holiday period is not recognised to the extent the Company’s gross total income is subject to the deduction during the tax holiday period. i) Taxes on Income : Income tax expense comprises of current tax and deferred tax charge. At the Balance Sheet date. Company’s contribution towards provident fund paid / payable during the year are charged to the Profit and Loss Account. except freehold land. 5. Income from investments is accounted for on accrual basis. Cost is determined using weighted average cost method and is inclusive of appropriate overheads. b) Revenue Recognition: The Company recognizes sales when the significant risks and rewards of ownership of goods have passed on the customers. c) Fixed Assets: Fixed assets are carried at cost as reduced by accumulated depreciation/amortization. which is generally at the point of dispatch of goods. subject to consideration of prudence. monetary assets and liabilities in foreign currency are restated by applying the closing rate. excluding freehold land. All other borrowing costs are charged to revenue. j) Foreign Currency Transactions: Transactions in foreign currency are recorded in rupees by applying the exchange rate at the date of the transaction. being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Depreciation on other fixed assets. 1956. 2010 1. Actuarial gains and losses are recognized in the Profit and Loss Account. is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act. On intangible fixed assets – Cost of technical know-how is amortized equally over a period of ten years. and is net of VAT credit. Sales are exclusive of sales-tax. g) Employee Benefits : Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account in the year in which related services are rendered. Cost comprises of cost of acquisition/construction. as applicable. including pre-operative expenditure capitalized.

) 5.Inox Wind Limited 2.) 3. SO 477(E) dated 25th July 1991. 1 Amount (Rs. 3.32.) 7. Imported and Indigenous Stores & Spares Consumed Particulars 2009-2010 % Imported Indigenous Total Nil 100 100 Amount (Rs.501 2.58.67. of sets) Turnover: Particulars 2009-2010 Qty (nos) Nacelle & Hub (sets) Others Total Notes: a.59. Hence there are no figures for the previous year.501 138 annual report 2009-10 .08. being a technical matter.616 7.98 100. 5.616 6.577 7. issued by the Ministry of Industry.00 Amount (Rs. 1951.94.73. The Company was incorporated on 9th April 2009 and this is the first financial year of the Company.08.235 7.884 400 Production 1 4.15.211 7.381 1. b.09. loans and advances are approximately of the values stated if realised in the ordinary course of business and the provisions of depreciation and of all known liabilities are adequate and not in excess of the amount reasonably necessary. Particulars of Raw Materials Consumed Particulars 2009-2010 Qty (nos) Gear Box Others Total 1 Amount (Rs.02 19. the Company’s products are exempted from licensing provisions under the Industries (Development and Regulations) Act. In the opinion of Board of Directors.98.84. Particulars of Capacity.80.73.) Nil 2.59.673 17.62. Production and Turnover: Installed Capacity and Production: Particulars 2009-2010 Installed Capacity Nacelle & Hub (no.67.41. the current assets.039 3. Imported and Indigenous Raw Materials Consumed Particulars 2009-2010 % Imported Indigenous Total 80.93. Installed capacity is determined on triple shift basis and is as certified by the management on which the Auditors’ have relied. Vide Notification No.

) 10.433 2009-2010 (Rs. 11.00.51.93. Employee Benefits: a) Defined Contribution Plans: Contribution to Provident Fund of Rs. Small and Medium Enterprises Act. 22.52. 15. 14.93.838 3. Nil Particulars of payment to Auditors : Particulars Statutory Audit Tax Audit Other Services Out of pocket expenses Service tax on above Total 12. CIF value of imports: Particulars Raw Materials Capital Goods (including capital work-in-progress) 9.802 16.000 50. 2006. 1. 3.340 9.137 is included in Schedule 4 : Pre-operative Expenditure Pending Allocation.27.000 Tax deducted at source from Interest received is Rs. The Company’s significant leasing arrangements are in respect of :Operating leases for premises (offices and residential accommodations for employees) . 18. net of advances .Rs. these lease arrangements are for non-cancelable period of 11 months and are renewable by mutual consent on mutually agreeable terms. Earnings in foreign exchange – Rs. including that given in Schedule No.90.998.23. There is no amount due to “Micro or Small Enterprises” under Micro.26.480 annual report 2009-10 139 .650 36.) 10.Inox Wind Limited 8.74. 1.037 is included in pre-operative expenses. 2009-2010 (Rs.76. 4. 9.77.45.294 34.276 8. Expenditure in Foreign Currency (including preoperative expenses and amounts capitalized) Particulars Technical Know-how Fees Royalty Travelling expenses Testing Charges 10.Generally.04. 10. 15.000 2.161 is included in ‘Rent’ in Schedule 13 to the Profit and Loss Account and Rent of Rs.488 2009-2010 (Rs. Estimated amounts of contracts remaining to be executed on capital account and not provided for.00.94. Rent of Rs. 10 each (fully paid-up) are purchased and redeemed during the year: HDFC Cash Management Liquid Fund .79. 17. The information regarding dues to ‘Micro or Small Enterprises’.17.000 7. Contingent Liabilities: Bank Guarantees furnished by the Company for performance of contractual obligations Rs.) 1.083 is recognized as an expense and included in ‘Contribution to Provident & Other Funds’ in the Profit and Loss Account and Rs.10490459 units – Cost Rs. 9 – Current Liabilities regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of the information available with the Company.67. Further no interest is paid / payable in the terms of section 16 of the said Act.333 Following investments in mutual funds units of Rs.880 39.50.14. 13.

205 63. promotion and other relevant factors such as supply and demand in the employment market. Actuarial Assumptions Discount Rate Salary Escalation Rate Retirement Age Withdrawal Rates Mortality Nil 3.93.07.323 31.547) 1.78.052) (3.084 140 annual report 2009-10 .547) 1. all the activities of the Company are in India and hence there is a single geographical segment. take account of inflation.22.2010 Rs.93.29.000 47.Inox Wind Limited b) Defined Benefit Plans: The amounts recognized in respect of Gratuity and Leave Encashment – as per Actuarial valuation As at 31. Expenses recognized in the Profit and Loss Account/as Pre-operative expenses Current Service Cost Interest Cost Actuarial (Gain)/Loss Expenses recognized in the Profit and Loss Account/as Pre-operative expenses 3. Further.3.000 48.702 77. 47.06.40.955 4.00. The Company operates in a single business segment viz.828 (17. 19.40.64. Related Party Disclosure: (i) Where Control Exists Holding Company – Gujarat Fluorochemicals Limited Ultimate Holding Company – Inox Leasing & Finance Limited (no transactions with this party) (ii) Particulars of Transactions with Gujarat Fluorochemicals Limited A) Transactions during the year Issue of shares Inter-corporate Deposit Received Interest paid Reimbursement of expenses paid Reimbursement of expenses received Sales B) Amounts Outstanding Inter-corporate Deposit Received Sundry Debtors Interest payable 2009-2010 Rs. considered in actuarial valuation.2010 Gratuity Leave Encashment Particulars 1.40. seniority.828 Nil (3.955 Nil Nil 3. 20.955 Nil Nil 3.229 3.431 7.08.281 8% 8% 60 years 5% LIC (1994-96) Published table of rates The above defined benefit plans are unfunded. The estimate of future salary increase. 29. manufacture of Wind Turbine Generators.905 43.81.05.94.07. Change in Benefit Obligation Interest Cost Current Service Cost Benefit paid Actuarial (Gain)/Loss Liability at the end of the year 2.00.40.955 Nil 4.00.000 8.3.29.40.99.00.

S.027 (1. 1956.64) As at 31. Particulars of Deferred Tax Asset: Particulars Retirement Benefits 22. they have been ignored in the computation of diluted EPS. 2010 DEVANSH JAIN Director annual report 2009-10 141 .21. 23.per share (Rs.12. 10/. 74.) Weighted average number of equity shares used in computing diluted earnings per shares (nos.nominal value Rs.Inox Wind Limited 21.) Note: Sine the convertible debentures are anti-dilutive. AGRAWAL Partner Place : Pune Dated : 22nd May.02. 2010 For Inox Wind Limited DEEPAK ASHER Director Place : Noida Dated : 22nd May.) Basic Earnings per share – nominal value Rs.521 10.2010 Rs.711 (20. Calculation of Earnings Per Share (EPS): Particulars Loss after tax as per Profit and Loss Account – numerator for calculating basic EPS (Rs) Less: Interest on debentures Adjusted loss for diluted EPS .000 As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S. Statement Pursuant to Part IV of Schedule VI to the Companies Act.3.992) 6.64) (20.019) 3.78. is enclosed vide Annexure.39.) Diluted Earnings per share . 2009-2010 (1.26.per share (Rs. 10/.numerator for calculating diluted EPS (Rs) Weighted average number of equity shares used in computing basic earnings per shares (nos.24.

Expenditure N IV I L 7 4 7 4 5 2 2 1 Accumulated Losses 1 2 4 3 9 Investments N I L 7 4 Net Current Assets Deferred Tax Asset PERFOMANCE OF COMPANY (AMOUNT IN RS.) (-) 2 Total Expenditure 9 1 1 2 0 4 6 3 3 9 + / (-) Profit/(Loss) After Tax Dividend Rate @ % N I L % V GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF COMPANY (As per monetary terms) Item Code No (ITC Code) Product Description 8 5 0 2 3 1 0 0 WIND-POWERED ELECTRIC0GENERATING0SETS 142 annual report 2009-10 . 1956 Balance Sheet Abstract and Company’s General Business Profile I REGISTRATION DETAILS Registration No Balance Sheet Date U 3 1 9 0 1 H P 2 0 0 9 P L C 0 3 1 0 8 3 3 1 0 3 2 0 1 Year 0 Date II Month State Code 0 6 CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS THOUSAND) Public Issue N Bonus Issue N I L I L Right Issue N 3 I 0 L 0 0 0 0 Private Placement III POSITION OF MOBILISATION AND DEPLOYLMENT OF FUNDS (AMOUNT IN RS THOUSAND) Total Liabilities 1 0 8 6 9 2 0 1 Total Assets 0 8 6 9 2 0 Sources of Funds Paid-up Capital 3 Secured Loans N I L 0 0 0 0 0 Reserves & Surplus N 5 I 7 L 4 6 8 7 Unsecured Loans Application of Funds Net Fixed Assets 7 8 7 Misc.Inox Wind Limited Statement Pursuant to Part IV of Schedule VI to the Companies Act. THOUSAND) Turnover (Net) 7 4 0 1 8 2 0 5 5 . 5 1 6 0 3 4 4 0 + / (-) Profit/(Loss) Before Tax Earning per share (Rs.

Inox Wind Limited IN I S TE NT PA IO G E NA LL H A Y LE S FT B BL E E AN N K TH annual report 2009-10 143 .

USA 1ST ANNUAL REPORT 2009-2010 MANAGER Mr. Patankar & Associates Chartered Accountants OFFICE 8040 Excelsior Dr. David Kaufmann AUDITORS M/s.. USA GUJARAT FLUOROCHEMICALS AMERICAS LLC.Gujarat Fluorochemicals Americas LLC. Suite 200 Madison WI 53717 144 annual report 2009-10 .

1956. the disclosure as required to be made in accordance with Companies (Disclosure of Particulars in the report of Board of Directors) Rules. 2. the Accounts and Auditors’ Report covers the period from 02nd September.16 32. II. FINANCIAL RESULTS Particulars Sales Turnover Less: Expenses Raw Materials Consumption Manufacturing and Other Expenses Depreciation and Amortization Loss for the year 3. 1. Texas Date : 22nd May. IV. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.16 2. PARTICULARS OF EMPLOYEES There are no employees covered by the provisions of Section 217 (2A) of the Companies Act. AUDITORS’ REPORT The notes forming part of the accounts are self explanatory and do not call for any further clarifications under Section 217 (3) of the Companies Act. 2009 as Limited Liability Company under the Business Organizations Code of the state of Texas. the manager has selected such Accounting Policies and applied them consistently and made judgements and estimates that 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.56 III. 2010. 2010. 1956. 23.01 (35. are not relevant. The report. RESPONSIBILITY STATEMENT Your manager would like to confirm that I.Gujarat Fluorochemicals Americas LLC. 6. the applicable Accounting Standards have been followed. Place : Rockdale. in the preparation of the Annual Accounts. the manager has prepared the Annual Accounts on a going concern basis.77) Amount (Rs in lacs) 21. 2009 to 31st March. 1975. USA Manager’s Report The Manager has pleasure in presenting the first Report on the working of the Company for the period ended on 31st March. COMPANY Your Company was incorporated on 02nd September. 5. 4. the manager has taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. 2010 David Kaufmann Manager annual report 2009-10 145 . 1988. read with the Companies (Particulars of Employees) Rules. DISCLOSURE OF PARTICULARS The Company being registered outside India.

Our responsibility is to express an opinion on these financial statements based on our audit. As stated in note 1 to schedule “F” . 3. USA Auditor’s Report TO THE MEMBERS OF GUJARAT FLUOROCHEMICALS AMERICAS LLC. We conducted our audit in accordance with auditing standards generally accepted in India. For Patankar & Associates. As required by the Companies (Auditor’s Report) Order. the said accounts. 1. of the loss for the period ended on that date. India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. of the cash flows for the period ended on that date.A. Chartered Accountants 2. Place : Pune. U. 1956. we report that: (i) (ii) (iii) (iv) (v) We have obtained all the information and explanations. 1956. we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet. these financial statements have been prepared by the Company for the purposes of attaching to the financial statements of its holding company. 1956. the Balance Sheet. 1956. give the information required by the Companies Act. 5. 2010 S. which to the best of our knowledge and belief were necessary for the purposes of our audit. 107628W 146 annual report 2009-10 . 4. and in the case of Cash Flow Statement. We have audited the attached Balance Sheet of Gujarat Fluorochemicals Americas LLC.S. as well as evaluating the overall financial statement presentation. as at 31st March. In our opinion. 49051 Firm Reg No. read with the notes thereon.A. as prescribed under section 212 of the Indian Companies Act. 2010. The Balance Sheet. 2010 and also the Profit and Loss Account and the Cash Flow Statement for the period ended on that date annexed thereto. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. Gujarat Fluorochemicals Limited. Further to our comments in the Annexure referred to above. In our opinion and to the best of our information and according to the explanations given to us. An audit includes examining. Dated : 22nd May. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. evidence supporting the amounts and disclosures in the financial statements. proper books of account as required by law have been kept by the company so far as appears from our examination of those books. U. These financial statements are the responsibility of the Company’s management. We believe that our audit provides a reasonable basis for our opinion. on a test basis. of the state of affairs of the Company as at 31st March.S. 2003 issued by the Central Government of India in terms of section 227(4A) of the Companies Act. Agrawal Partner Membership No.Gujarat Fluorochemicals Americas LLC. in the case of the Profit and Loss Account. An audit also includes assessing the accounting principles used and significant estimates made by management. S. In our opinion.

has no statutory liabilities in India and accordingly reporting for clause 4(ix) of the the Companies (Auditor’s Report) Order. ON THE ACCOUNTS FOR THE PERIOD ENDED 31ST MARCH. The Company does not have any borrowings from financial institutions or bank or by way of debentures issued and hence the provisions of clause 4(xi) of the Companies (Auditor’s Report) Order. 8. According to information and explanation given to us. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The Company has not availed of any term loans during the year and hence the provisions of clause 4(xvi) of the Companies (Auditor’s Report) Order. to the best of our knowledge and belief. (vi). The clauses 4(iii). The Company has not raised any money by way of public issues during the year. The Company has been registered for a period of less than five years and hence the provisions of clause 4(x) of the Companies (Auditor’s Report) Order. 2010 S. 2003 is not required. 107628W annual report 2009-10 147 . 3. These fixed assets have been physically verified by the management at reasonable intervals and no discrepancies have been noticed on such verification. (viii). 9. Agrawal Partner Membership No. USA ANNEXURE REFERRED TO IN PARAGRAPH 4 OF THE AUDITOR’S REPORT TO THE MEMBERS OF GUJARAT FLUOROCHEMCIALS AMERICAS LLC. the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. 12. In our opinion. (v). The Company being registered in USA. 11. debentures or other securities. no major weakness has been noticed in the internal control systems in respect of this area. 2003 are not applicable to the Company since it is registered outside India and hence no reporting has been made. Dated : 22nd May. 10. (xiii) and (xviii) of the Companies (Auditor’s Report) Order. debentures and other investments and hence the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order. 6. Place : Pune. The provisions of clause 4(vii) of the Companies (Auditor’s Report) Order. U. 14. Chartered Accountants 2. 2003 are not applicable to the Company. There are no debentures issued and outstanding during the year and hence the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order. During the course of our audit. 15. 2003 in respect of internal audit system are not applicable to the Company. The Company has not raised funds on short term basis during the year and hence the provisions of clause 4(xvii) of the Companies (Auditor’s Report) Order. we state as under: 1.Gujarat Fluorochemicals Americas LLC. the Company has not given any guarantee for loans taken by others from banks and financial institutions. In our opinion. 2003. In our opinion. 13. No fraud on or by the company was noticed or reported during the course of our audit. on the basis of information and explanation given to us and the books and records examined by us in the normal course of audit and such checks as we considered appropriate. the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records. 5. 7. For Patankar & Associates.S. 4. 49051 Firm Reg No. There is no disposal of fixed assets during the year The inventories were physically verified by the management at reasonable intervals during the period. S. 2010 In term of the Companies (Auditor’s Report) Order. 2003 are not applicable to the Company. 2003 are not applicable to the Company. 2003 are not applicable to the Company. The Company is not dealing or trading in shares. 2003 are not applicable to the Company.A. securities. 2003 are not applicable to the Company. The Company has not granted loans and advances on the basis of security by way of pledge of shares. there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of inventory and fixed assets and for sale of goods.

36. Dated : 22nd May. 2010 148 annual report 2009-10 . As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.256 Net Current Assets Profit & Loss Account (Balance as per annexed accounts) Total Notes to Accounts F 1.Gujarat Fluorochemicals Americas LLC.65. USA Balance Sheet as at 31 st March.992 1.76. 2010 Schedule SOURCES OF FUNDS : Shareholder’s Funds Capital Foreign Currency Translation Reserve Total APPLICATION OF FUNDS : Fixed Assets Gross Block Less: Depreciation Net Block Current Assets.A.33.S.31.380 (5.16.84.45.953 54.740) 1.11.256 36. 2010 For Gujarat Fluorochemicals Americas LLC.66.00.640 As at 31-3-2010 Rs.U.908 A 2.58.U. David Kaufmann Manager Place : Texas.S.363 26.47.640 18. S.25.25.A.752 1. Loans and Advances Inventories Sundry Debtors Cash & Bank Balances Loan and Advances B C 7.04.744 2.17.900 2.236 Current Liabilities & Provisions Current Liabilities D 36.50.176 18. AGRAWAL Partner Place : Pune Dated : 22nd May.99.980 35.99.33.

USA Profit and Loss Account for the period ended 31 st March.16.A. 2010 Schedule INCOME Sales 21.Gujarat Fluorochemicals Americas LLC. AGRAWAL Partner Place : Pune Dated : 22nd May.022 (35.15.270 EXPENDITURE Raw Material Consumed Manufacturing and other expenses Depreciation and Amortization Total Loss for the year carried to Balance Sheet Notes to Accounts F E B 23.U.00.182 2.270 21.U.752) Rs. 2010 annual report 2009-10 149 .S.76. 2009-2010 As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.33.992 57. S. Dated : 22nd May.A.S.56. David Kaufmann Manager Place : Texas. 2010 For Gujarat Fluorochemicals Americas LLC.847 32.56.

00.75.S.04.744 As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S. 2010 For Gujarat Fluorochemicals Americas LLC. S.76. USA Cash Flow Statement for the period ended 31 st March.47.380 2. 2010 150 annual report 2009-10 .47. 2010 Rs.17. AGRAWAL Partner Place : Pune Dated : 22nd May.87.U.S.66. David Kaufmann Manager Place : Texas.95.04.996) 2.900) (1.11.A.316) (7.11.752) Adjustments for : Depreciation and amortization Operative profit/(loss) before working capital changes Adjustments for : Trade and other receivables Inventories Trade payables Net cash generated/(used) in operating activities (20.A.17.58.740) Net increase in cash and cash equivalent Cash and cash equivalents as at the end of the year 26.84. 2009-2010 A Cash flow from operating activities Net Loss before tax (35.84.759) B Cash flow from investing activities Purchase of Fixed Assets Net cash generated/ (used) in investment activities (1.U.256 (25.744 26.Gujarat Fluorochemicals Americas LLC.33.380 D Adjustement on accounts of Foreign Currency Transalation Reserve (5.992 (33.900) C Cash flow from financing activities Issue of Shares Net cash from financing activities 2.176) 36. Dated : 22nd May.

482 10.47.50.16.992 As at 31-Mar-10 85.225 2. SCHEDULE “C” : CURRENT ASSETS.586 2.085 1. India) TOTAL SCHEDULE B : FIXED ASSETS Rs.11.900 As at 31-Mar-10 63.72.744 26.11.953 2.29.17. USA Schedule Annexed to and Forming part of the Balance Sheet as at 31 st March.16. Note No.001 71. Particulars Gross Block Additions Plant and Machinery Electrical Installations Manufacturing and other Equipments Furniture and Fixtures Total 63.953 annual report 2009-10 151 .50.16.176 7.66.992 Net Block As at 31-Mar-10 63.39.085 1.363 26.66.491 72.84.17.491 1.380 2.00.45.72.01.36.225 2.744 2. LOANS & ADVANCES INVENTORIES ( at lower of cost or net relaisable value) Raw Material TOTAL SUNDRY DEBOTRS (Unsecured and considered good by mamagement) Exceeding 6 months Others TOTAL CASH & BANK BALANCES Balance in current accounts with non-scheduled banks (Ref.36.908 2.380 2.099 8.90.68.176 18.47.363 18.90.491 72.900 Depreciation/Amortization For the year 85.639 3. 9 in notes to accounts) TOTAL LOANS AND ADVANCES (Unsecured and considered good by mamagement) Advances Recoverable in cash or in kind or for value to be received TOTAL 7.04.617 8.84.482 10.00.639 3. SCHEDULE “A” : SHARE CAPITAL Capital Contribution (Entire capital contribution is made by the Holding Company Gujarat Fluorochemicals Limited.04.01.099 8.39.Gujarat Fluorochemicals Americas LLC.380 2.705 1.380 As at 31-3-2010 Rs. 2010 As at 31-3-2010 Rs.491 1.04.14.

63.669 6. 2009-2010 SCHEDULE “E” : MANUFACTURING AND OTHER EXPENSES Stores and Spares Consumed Repairs and Maintenance Plant & Machinery Building Other 2.451 32.Gujarat Fluorochemicals Americas LLC.652 70.84. 2010 As at 31-3-2010 Rs.302 Power and Fuel Freight Insurance Legal and Professional Fees Labour charges Rent Communication expenses Bank Charges Miscellaneous expenses TOTAL 152 annual report 2009-10 . USA Schedule Annexed to and Forming part of the Balance Sheet as at 31 st March.99.26.150 6.71.16.92.33.511 1.12.14.33.06.182 105.212/-) TOTAL 36.471 9.771 26.256 36.642 14.204 5.32.960 1.256 - Schedule Annexed to and Forming part of the Profit and Loss Account Rs. SCHEDULE “D” : CURRENT LIABILITIES Sundry Creditors Dues to Micro and Small Enterprises Others (Including due to holding company Rs.306 1.094 1.

India.847 MT MT MT MT MT 45 0 5. Gujarat Fluorochemicals Limited. SIGNIFICANT ACCOUNTING POLICIES a) BASIS OF ACCOUNTING The financial statements are prepared under the historical cost convention.00 Value (Rs.) 19.52. The Balance Sheet. ii. Hence there are no figures for the previous year. Cost is determined using FIFO Method and is inclusive of appropriate overheads. c) DEPRECIATION & AMORTIZATION Depreciation is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act. Profit & Loss Account and the Cash Flow Statement of the Company have been drawn up in terms of US dollars representing the functional currency of the Company. d) INVENTORIES Inventories are valued at lower of cost and net realisable value.56. BACKGROUND: Gujarat Fluorochemicals Americas LLC has been incorporated in United States of America on 8th September. 2010 1. for purposes of compliance with the requirements of section 212 of the Indian Companies Act 1956. Production. 6. on the accrual basis of accounting.000 or less are fully depreciated in the year of acquisition. which is generally at the point of dispatch of goods.50 0 0 21. USA Schedule F : Notes to Accounts for the period ended 31 st March. and are in accordance with applicable mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules. 4. These financial statements have been prepared for the purpose of compliance with the provisions of section 212 of the Indian Companies Act. 3. these financial statements will be attached to the financial statements of GFL as prescribed under Section 212 of the Indian Companies Act.270 0 Quantity 2009-2010 Value (Rs. However. Cost comprises of purchase price. loans and advances are approximately of the values stated if realised in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.e. In the opinion of the Management. India (GFL).675 23. 2009 and this is the first financial year of the Company. Particulars of Capacity. the current assets.15. these financial statements have been translated into Indian Rupees in accordance with the methodology prescribed for conversion of financial statements of a non-integral operation in the Accounting Standard 11 Effects of Changes in Foreign Exchange Rates. 1956. b) FIXED ASSETS Fixed Assets are carried at cost less accumulated depreciation. installed capacity opening stock production sales closing stock Licences Capacity. including any expenses attributable to bring the asset to its working condition for its intended use. Raw Materials consumed PT-PTFE Others Total 2009-2010 Quantity (in MT) 6. e) SALES The Company recognises sales when the significant risks and rewards of ownership of the goods have passed to the customers. Fixed Assets costing Rs 5.Gujarat Fluorochemicals Americas LLC. Installed capacities are as certified by the management on which the Auditor’s have relied. 1956 by the holding company i. 1956. 5.Not applicable. Turnover and Stocks: Products UOM Post Treated Poly Tetra fluoroethylene (PT PTFE) Compounding i.63. 2009 and is 100% subsidiary of Gujarat Fluorochemicals Limited. The Company was incorporated in United States of America on 8th September.) 2009-2010 2. annual report 2009-10 153 . being a technical matter. 2006 and the relevant provisions of the Companies Act. 1956.172 3.50 5. Accordingly.

Entire consumption of raw materials and stores & spares consumption is in respect of materials procured locally. India (Holding Company) a) Transaction during the year : S.A. Segment Information The Company operates in a single business segment viz. Further. S.A. a) b) Particulars Capital Contribution Amount Payable Amount (Rs.010 6.212 12.762 4. AGRAWAL Partner Place : Pune Dated : 22nd May. 2010 154 annual report 2009-10 . all the activities of the Company are in U.380 20.491 1.84. 8.202 Amount outstanding as at the end of the year : S.40.704 JP Morgan Chase Bank 8647 JP Morgan Chase Bank 8515 JP Morgan Chase Bank 8092 10.Gujarat Fluorochemicals Americas LLC. David Kaufmann Manager Place : Texas.491 4.84. India (Ultimate Holding Company) – no transactions with this party during the period. manufacture of PT-PTFE Compounding. 13.S.03. Particulars of Payments to Auditor’s Particulars Audit Fees Service Tax Total Amount (Rs. is enclosed vide Annexure. Deferred Tax: The Company has incurred loss during the year and consequently has a net deferred tax asset as on 31st March 2010.47. Statement Pursuant to Part IV of Schedule VI to the Companies Act.) 2009-2010 50.A. Dated : 22nd May.S.02.U. in view of absence of virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. Further. in USA. 11. 1956.No. entire sale of the Company is in the USA.431 4. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.04.U. and hence there is a single geographical segment. However.) 2. Related Party Disclosures: Names of Related Parties where control exists: i) ii) Inox Leasing and Finance Limited. Particulars of balances with non-scheduled bank Name of the Bank Closing Balance Maximum as on balance during 31.000 5.814 4. 2010 For Gujarat Fluorochemicals Americas LLC.04.36. This lease arrangement is non-cancellable and valid for 3 years and is renewable by mutual consent on mutually agreeable terms. the same is not recognized 14.44. a) b) c) b) Particulars Capital Contribution Purchase of Goods Reimbursement of Expenses Paid Amount (Rs. The aggregate lease rentals are charged as “Rent” in Schedule “E” to the Profit and Loss Account.2010 the period 26. USA 7.150 9.S.150 55. viz. Disclosure as required by Accounting Standard – AS 19 on “Leases” – The Company’s leasing arrangements are in respect of operating leases for factory premises taken on lease.380 26.No. Gujarat Fluorochemicals Limited.84.) 2.

) N I L Total Expenditure 5 7 3 3 + . 1956 Balance Sheet Abstract and Company’s General Business Profile I REGISTRATION DETAILS Registration No Balance Sheet Date 8 3 0 1 1 0 1 3 6 1 5 0 9 8 5 State Code T E X A S 0 U S A Date II Month Year CAPITAL RAISED DURING THE YEAR (AMOUNT IN RS THOUSAND) Public Issue N Bonus Issue N I L I L Right Issue N N I I L L Private Placement III POSITION OF MOBILISATION AND DEPLOYLMENT OF FUNDS (AMOUNT IN RS THOUSAND) Total Liabilities 1 Sources of Funds Paid-up Capital 2 Secured Loans N N I I L L 0 4 8 4 N I L Reserves & Surplus 5 Unsecured Loans 5 9 9 9 2 6 Total Assets 1 9 9 2 6 Deferred Tax Liability Unsecured Loans Application of Funds Net Fixed Assets 1 Net Current Assets 1 Accumulated Losses 3 IV 5 7 7 8 3 2 4 5 1 7 Investments N I L Misc. Expenditure N I L PERFOMANCE OF COMPANY (AMOUNT IN RS. THOUSAND) Turnover (Net) 2 1 5 6 + / (-) Profit/(Loss) Before Tax (-) 3 5 7 7 Earning per share (Rs.Gujarat Fluorochemicals Americas LLC.Profit/(Loss) After Tax (-) 3 5 7 7 Dividend Rate @ % N I L V GENERIC NAMES OF PRINCIPAL PRODUCTS/SERVICES OF COMPANY (As per monetary terms) Item Code No (ITC Code) Product Description 390400 P O LY T E T R A F L U O R O E T H Y L E N E annual report 2009-10 155 . USA Statement Pursuant to Part IV of Schedule VI to the Companies Act.

Gujarat Fluorochemicals Limited GUJARAT FLUOROCHEMICALS LIMITED C O N S O L I D AT E D ANNUAL ACCOUNTS 2009 – 2010 156 annual report 2009-10 .

The financial statements and other financial information of these joint venture and associate have been audited by other auditors. An audit includes examining. its subsidiaries. on a test basis. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. 107628W annual report 2009-10 157 . 434/-. Agrawal Partner Membership No. S. joint venture and associate. We conducted our audit in accordance with the auditing standards generally accepted in India. evidence supporting the amounts and disclosures in the financial statements. of the state of affairs of the Group as at 31st March 2010. No. and our opinion.08 lacs in this Consolidated Financial Statement. and in the case of the Consolidated Cash Flow Statement. We have audited the attached Consolidated Balance Sheet of Gujarat Fluorochemicals Limited (the “Company”). We also did not audit the financial statements of the an associate of the Company’s subsidiary whose financial statements reflect the Group’s share of profit upto 31st March 2010 of Rs. in the case of the Consolidated Profit and Loss Account. as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.Gujarat Fluorochemicals Limited Auditor’s Report on Consolidated Financial Statements AUDITOR’S REPORT TO THE BOARD OF DIRECTORS OF GUJARAT FLUOROCHEMICALS LIMITED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF GUJARAT FLUOROCHEMICALS LIMITED.18 lacs and Group’s share of profit for the year ended 31st March 2010 of Rs. Dated : 22nd May 2010 S. 2889. insofar as it relates to the amounts included in respect of these venture and associate. 1956. of the profit of the Group for the year ended on that date. 49051 Firm Reg. and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We did not audit the financial statements of the joint venture of the Company. of the cash flows of the Group for the year ended on that date. 1. we are of the opinion that the attached Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India. These Consolidated Financial Statements are the responsibility of the Company’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. 2021.Consolidated Financial Statements. Accounting Standard (AS) 23 . notified by the Companies (Accounting Standards) Rules. whose reports have been furnished to us. total assets of Rs. JOINT VENTURE AND ASSOCIATE.74 lacs and total revenues of Rs. For Patankar & Associates Chartered Accountants Place : Pune.Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard (AS) 27 – Financial Reporting of Interests in Joint Venture. ITS SUBSIDIARIES. (a) (b) (c) in the case of the Consolidated Balance Sheet. is based solely on the reports of the other auditors. (collectively “Group”) as at 31st March 2010. We report that the Consolidated Financial Statements have been prepared by the Company’s management in accordance with the requirements of Accounting Standard (AS) 21 . Based on our audit and on consideration of reports of other auditors on separate financial statements and to the best of our information and according to the explanations given to us. 2006 and the relevant provisions of the Companies Act. An audit also includes assessing the accounting principles used and significant estimates made by Management. to the extent of the proportionate share of the Group. whose financial statements reflect.

67 230513.46 126611.67 10278.48 230513.00 15203. in lacs) 1 2 1098.68 10555.97 13877.69 0.01 19895.57 143685.04 1014.71 44065.97 0. 2010 Amount (Rs. JAIN Director 158 annual report 2009-10 .86 4376. S.85 12822.83 11332. 2009 Amount (Rs. 2010 Schedule Number I SOURCES OF FUNDS 1 Shareholders’ Funds (a) Capital (b) Reserves and Surplus As at 31st March. V. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V.63 163577.01 72297.17 19383.16 1098. P.71 61878.50 167061.(ii) Total Notes forming part of Accounts As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.56 25953.56 820. JAIN Chairman B.98 50625.06 60222.85 72344.16 58419. DESAI Company Secretary SHAILENDRA SWARUP Director S.84 133136.35 18796.20 7978.23 3 4 33987.66 168160. K.99 2804.03 10518. Loans and Advances (a) Inventories (b) Sundry Debtors (c) Cash and Bank Balances (d) Other Current Assets (e) Loans and Advances Sub-Total (i) (ii) Less : Current Liabilities and Provisions (a) Liabilities (b) Provisions Sub-Total (ii) Net Current Assets (i) .72 46750.38 20587.56 5260.42 21908.00 1049.62 27891.00 6 7 8 Investments Deferred Tax Asset (i) Current Assets.73 252080.33 107815.69 16156. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D.03 277. in lacs) As at 31st March. K.42 9 41260.74 20392.99 10899.21 4 II APPLICATION OF FUNDS 1 Fixed Assets (a) Gross Block (b) Less : Depreciation (c) (d) (e) (f) 2 3 4 Net Block Capital Work-in-progress Advances on Capital Account Pre-operative expenditure pending allocation 5 169639.17 2 3 Minority Interest Loan Funds (a) Secured Loans (b) Unsecured Loans Deferred Tax Liability (Net) Total 10708.39 72534.27 18920.30 13832.78 252080.Gujarat Fluorochemicals Limited Consolidated Balance Sheet of Gujarat Fluorochemicals Limited and its Subsidiary Companies as at 31 st March.50 136283.01 17 16648.17 137381.

62 36147.16 0.13 31.14 127013.ref.00 35310.66 133054.69 81058.00 0.76 6917.18 7038. DESAI Company Secretary SHAILENDRA SWARUP Director S.00 7168. V.75 653.00 0.91 1385. K.31 0.33 2669.00 1621.86 2008-2009 Amount (Rs.02 167.50 92827. P.50 (1102.52 (922.09 5335.17 13 14 15 16 17 18 19 20 As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S. JAIN Director annual report 2009-10 159 .Net Other Income 10 11 2009-2010 Amount (Rs.95 6956.Gross Less: Excise Duty 2 Sales and Services .94 49813.14 2014.95) 92042.95) 978.85 (3.84 5170. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V.Refer Note No. 2010 Schedule Number INCOME 1 Sales and Services .63 35010.30 41. in lacs) 128031.35 7301.76) (2.96 126016.05 33291.00 192.32 1559. Operating and other Expenses 4 Salaries and Benefits 5 Provision for diminution in value of investments (Net) 6 Interest 7 Goodwill on consolidation written off 8 Depreciation & Amortization Less : Expenses Capitalized Net Expenditure 9 10 Profit before Taxation Provision for Taxation for the year Current tax MAT Credit Entitlement Deferred tax Fringe benefit tax Profit after tax Add/(Less) : Taxation in respect of earlier years Prior Period Taxation MAT Credit Entitlement for earlier years .75 647.44 (784.00 34087.00 6368.00 1022.50 11 12 33843. 9 in Notes to Accounts Profit for the year Less: Minority Interest Add/(Less) : Profit of Associate/Share in (Loss) Net Profit Profit brought forward from previous year Share in opening profit in Joint Venture Profit available for appropriation Less : Appropriations Capital Redemption Reserve Dividend on shares bought back Transfer to General Reserve Interim Dividend Proposed Dividend Tax on Dividend Balance carried to Balance Sheet Basic and diluted Earnings per Share of Re 1 each Notes forming part of Accounts 17 12 13 14 15 7 16 5 (910.80 21 2212.00 2197.39 0. JAIN Chairman B.00 81058.13 31.97) 22279.02 12343. 9 Reversal of current tax provision and deferred tax for earlier years .93 31.00) 969. note no.31 49148.85 7790.00 3844.00 1647.69 35504.88) 29372.51 (876.49 41012.98 45819.86 0. in lacs) 129682.58 80.98 130207.46) 35268.03 59.25 0. K.Gujarat Fluorochemicals Limited Consolidated Profit and Loss Account of Gujarat Fluorochemicals Limited and its Subsidiary Companies for the year ended 31 st March.30 (4.00 28800.82 0.42 33924.00 14044.50) 20832.83 35104.84 EXPENDITURE 1 (Increase) / Decrease in Stocks 2 Materials Consumed and Purchase of Goods 3 Manufacturing.13 268.11 (4483.98 1385. S. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D.19 3193.61) 0.73 0.03 20.

14 Adjustement on accounts of Foreign Currency Transalation Reserve 305. As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.57 Cash and cash equivalents as at 31st March.00 Capital receipts 825.26) 694. Dividend received and others (Net of expenses) Adjustment for receivables on investment account Net cash used in investment activities C Cash flow from financing activities Share issue under ESOP Shares issued Debentures issued Proceeds from/Repayment of Long Term Loan (Net) Repayment of /Proceeds from Short Term Loan (Net) Interest paid Dividend paid (Including Tax on Dividend) Amount paid towards Buy Back of Shares Net cash (used in)/from financing activities D E 41012.56 3228.76 59200.00 21514.56 3061.35 7790.00 (22626. 9 of Note to Accounts) Net (increase)/decrease in cash and cash equivalent (10. 2009 (Opening balance) 20587. K.02 12121.94) (7018.25) 5456. DESAI Company Secretary SHAILENDRA SWARUP Director S. capital advances and pre-operative expenses) Sale of fixed assets Acquisition of intangible assets (Including advances) Purchase of investments Deposit in Escrow Account for Open Offer . P.81 (25.Gujarat Fluorochemicals Limited Consolidated Cash Flow Statement of Gujarat Fluorochemicals Limited and its Subsidiary Companies for the year ended 31 st March. 2010 Amount (Rs.19 53133.90) 589.65 (141591.37 (64637.18) (90316. V. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V.12 182.18) 14874.10) (4221.31) 5887.977.36 (271.54) (25981.99 (5190.79) 11.49 (1008.19) (6136. K.83 2008-2009 49548.36) (5174.41 81626.14) 0. 2010 (Closing balance) 9610.84 8.05 629.26 318.see note below Redemption/Sale of Investments Purchase of Investment property Inter corporate and other loans (Net) Interest . in lacs) 2009-2010 A Cash flow from operating activities Net profit before tax Adjustments for : Depreciation and Amortisation Provision for diminution in value of investments Loss on assets sold/written off (Net) Amortization of Value of Stock Option Goodwill written off Income in respect of Investments (Net) Interest Operative profit before working capital changes Adjustments for : Trade and other receivables Inventories Trade payables Cash generated from operations Direct taxes paid (Net) Net cash from operating activities B Cash flow from investing activities Purchase of fixed assets (including change in capital WIP.79) 4. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D.66) 4.25 (16332.11) 75156.42 (125.09 104.05) 0.59) 39174.55) 5170.85 (2591.22 167.69 268.00 0.00 (37769.25 0.47 7.00 98801.50 1559. S.excluding amount in Escrow Account.31 16.17 0.49 20587.04) 27175.09 28493.07) 17358.04 (11999.75) 0.76) 17266.17 9651.64 (Please refer to Note No.09) 1598.54 14627.00 (28688.90 (1503.51 (20026.06 1000.56 Note : Components of cash and cash equivalents are as per Schedule 10 to the Balance Sheet.99 Cash and cash equivalents as at 1st April.27 0.00 (639.17) 147. JAIN Chairman B. JAIN Director 160 annual report 2009-10 .00 (2520.87 6368.17) (2818.84) (9245.54) 115228.94 (6470.63 (11475.00 0.

4042.93 1002.62 58419.93 167061.43 16432.83 824.310 shares are held by the Holding Co.00.50.00 20.73 11880.29 8234.05 (4.00 13877.80 27891.30 115300. 2010 Amount (Rs.04 1000.50 As at 31st March.50 11055.18 0.21 0.50 1098.13 136283.39 115300.50 Authorised 20.00 1098.45 8506.71 annual report 2009-10 161 . in lacs) 2000.000 Equity Shares of Re 1 each -Out of above 5.00 59.25 2212..80 Lacs) Foreign Currency Loans Term Loans (amount payable within one year Rs.30 92000.00.72 0.62) 27.30 59.30 0. Nil ) Foreign Currency Loans Term Loans (amount payable within one year Rs.00 248. 100 each (optionally convertible into fully paid equity shares at par after a period of three years from the date of allotment viz.17 25481.77.82 Lacs) Total SCHEDULE 4 : UN SECURED LOANS From Banks Rupee Loan Term Loans (amount payable within one year Rs. 6 in Notes to Accounts ) Share Premium Account As per last Balance Sheet Less: Adjusted on Buyback of shares Add: Adjustment on account of grant of stock options to employees in subsidiary company and share in Joint Venture Capital Redemption Reserve As per last Balance Sheet Add : Transfer from Profit & Loss Account General Reserve As per last Balance Sheet Less: Adjusted on Buyback of shares Add: Transfer from Profit and Loss Account Amalgamation Reserve As per last Balance Sheet Foreign Currency Transalation Reserve Profit and Loss Account Balance as per Annexed Account Total SCHEDULE 3 : SECURED LOANS From Banks Rupee Loan Term Loans (amount payable within one year Rs. Previous year Rs. 11452.00 28800.52 33987.19 41987. 2783. Previous year Rs.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet SCHEDULE 1 : CAPITAL As at 31st March.35 ) 10. 10593.46 Lacs . 2944.00 (6072.Inox Leasing & Finance Limited -5930000 Shares bought back during the year 2008-09 Total SCHEDULE 2 : RESERVES AND SURPLUS Capital Reserves As per last Balance Sheet Addition during the year (Refer Note No.00 2.98. 1217.37 Lacs.00 0.43 59.71 0. on 19.71 8255.44.00 1098.88 Lacs.39) 29372.3.00 0.66 10426.00.00 144100.000 7% Unsecured Fully Convertible Debentures of Rs.97 9642.00 248.19 629.00 13877. in lacs) 2000.44 16527.56 8234. Previous year Rs.72 0. 6246.83 8212.15.93 718.00 59.00 0. Previous year Rs.64 11055.00 1385.00 0.18 305.2013) Add Interest accrued and due Inter Corporate Deposits Total 1098. 2009 Amount (Rs.000 Equity Shares of Re 1 each Issued and Subscribed and Paid Up 10.

23 8.89 1673.01 930.59 335.42 2250.68 335.83 0.21 692.02 169639.89 160.162 annual report 2009-10 Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet SCHEDULE 5 – FIXED ASSETS Gross Block Particulars As at 1–Apr–09 Additions Deductions As at 31–Mar–10 As at 1–Apr–09 Depreciation/Amortization For the year Deductions As at 31–Mar–10 Amount (Rs.02 2637.47 82.32 676.00 3185.33 248.89 13.26 397.07 47.25 15.97 747.61 7289.11 2050.88 163655.81 35.08 834.79 1758.57 18796.08 18196.16 773.98 22588.64 .56 213.78 690.67 40285.10 113.81 63175.28 106577.70 534.79 43775.08 105.46 23919.99 265.25 13.33 1630.93 21793.12 1948.44 2373.35 1158.81 7885.08 460.59 3945.33 12917.56 105.48 123425.23 3394.71 10.44 2240.94 1545.61 143685.99 20247.00 1237.88 804.35 692.48 3942.27 131.41 692.33 5983.12 2186.01 290.36 160.73 14907.25 329.83 2465.99 10.74 63344.59 372.83 505.53 6454.33 21811.50 4607.66 1234.73 728.91 281.25 10965.25 692.45 23998.01 89.62 24668.52 8.91 16848.84 531.95 16.40 335.27 55.99 2332.12 989.40 37.56 126611.41 1681. in lacs) Net Block As at 31–Mar–10 As at 31–Mar–09 (a) Tangible Assets Land Freehold Land Leasehold Land 2250.16 64.71 76.36 7107.22 496.57 Buildings and Roads Lease hold improvements Plant and Machinery Wind Mill Manufacturing and other Equipments Furniture and Fixtures Vehicles Total (a) (b) Intangible Assets Technical Know How Software Film Distribution Rights & Prints Cost Movie Production Total (b) (c) Share in Joint Venture* Grand Total (a + b + c) Previous year 139736.22 409.94 1550.41 25953.90 14645.84 290.88 281.12 1752.69 2875.54 78083.32 9.25 458.05 225.35 3651.29 456.64 2080.77 2332.28 2176.11 1966.21 42194.99 107815.23 1899.07 262.24 231.56 1925.43 0.49 52379.88 456.70 1960.11 1029.28 2709.35 203.33 5112.40 928.25 1833.35 112300.56 1819.44 26.80 14739.76 989.32 132.72 300.45 731.41 18796.80 39.00 2709.62 38249.95 2481.02 126611.

000 250.000.21. 2009 Amount (Rs. As at Face Value Nos.219. As at 31st March.59 0. at cost.42 3.000 250.500 15.53 2128.64 annual report 2009-10 163 .14 lacs) are pledged with Government Authorities) 21.00 2500.00 0. 2009 2010 SCHEDULE 7 : INVESTMENTS (I) Investment in Securities (Long term.14 lacs (previous year Rs.65 0.87 0.11 94.00 0.00 1000.94 ii) National Savings Certificates (Held in the name of Directors/Employees and certificates worth Rs. in lacs) 922.14 iii) In Fully Paid-up Equity Shares (unless otherwise stated) Humsay i Global Services Limited Future Ventures India Limited The Ratnakar Bank Limited 10 10 100 2.03 6.00 54.00 4.91 0.39 161. 31st March.34 52.64 239.65 51.00 998. Professional and Consultancy charges Travelling and Conveyance Rent Insurance Power & Fuel Communication expenses Rates and Taxes Processing fees Interest on fixed loans Lease Rentals and Hire Charges Testing Charges Miscellaneous expenses Depreciation Bank charges Raw Materials Less: Dividend on current investments Profit on sale of current investments Miscellaneous income 1049.00 3500.500 2.00 0.85 0.06 4. Non-trade.42 1297.10 13.46 31.25 1500. Allowances and benefits Contribution to Provident and other funds Legal. 2010 Amount (Rs.61 1049.74 9.44 123.00 1209.50 15.63 As at 31st March 2010 Amount (Rs. 21.14 54.79 1014.58 Less: Capitalized Closing Balance Nos.38 0.88 10.000 15.84 319.00 998.00 0.000 2.86 10.99 5.00 3500. Rs.90 156.20 3.56 15.00 1267.000 1000. in lacs) SCHEDULE 6 : PRE-OPERATIVE EXPENDITURE PENDING ALLOCATION Opening balance Add: Expenses incurred during the year Salaries.25 1500.92 0.45 1078.49 8.00 47.00 292.38 102.000.000 1.94 21.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet As at 31st March. unquoted) A] UNQUOTED i) In Venture Capital Fund Indiareit Fund Scheme III Kshitij Venture Capital Fund As at 31st March.39 3.40 12.392.00 2500.84 As at 31st March 2009 Amount (Rs.919 239.27 1262. in lacs) 2312. Wages.190 221.83 249. in lacs) 100000 1000 1.00 0.392.06 1205.95 5.97 481.92 196.

248.65 1268.000 1500. 1.681 4.099. 10 each .00 517.747. 31st March.719.000 As at 31st March 2010 Amount (Rs.668.45 iv) 1000000 1000000 1000000 100000 150 100 100 1.006.00 1000.00 500.672 0 10.40 500.00 0.00 375.paid up Rs.00 375.362.638.998 0 0 1.00 2000.935.155 5.45 1048.541 0 2.210 1048.743.82 64 1. 200 Lacs) advance call money paid) Kaleidoscope Entertainment Private Limited iii) In Cummulative.467.09 563.00 12.05 1302.489 9.-Fnd HDFC Income Fund .796.Pl.00 2500.23 0.489 9.624.526 0 19.00 0.949.00 4500.00 375.00 0.11 1286.00 0.00 0.106.330 10. Redeemable Preference Shares (fully paid-up) Humsay i Global Services Limited In Equity linked Debentures i) Citicorp Finance (India) limited Redeemable NCD Issue Series 173 Redeemable NCD Issue Series 184 Redeemable NCD Issue Series 200 ii) Citifinancial Consumer Financial India In Units of Mutual Funds Birla Sunlife Income Plus-Growth ICICI Prudential Institutional Income Plan-Growth IDFC Super Saver Income Fund-Investment Plan B-Growth IDFC Dynamic Bond Fund Plan B-Growth Kotak Bond-Regular-Growth Reliance Income Fund Retail Plan Growth Plan-Growth Reliance Medium Term Fund .00 0.25 1065.228 4.00 0.645 6.469 0 1000.23 27611.00 1500.00 2000. 1.853.45 1048.00 1500.00 0.90 1503.00 0.56 2209.046 7.000 0 4.003 14.000 150 100 100 1.281 2.768.00 1500.00 1002.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet Nos.Growth Templton India Ultra short Bond Fund Super Institutional Plan -Daily Dividend .74 v) 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 100 2.981.928 0 4.00 1000.00 4500. Nil Lacs (previous year Rs.468.438 1.748. As at Face Value Nos.00 1002.Dividend ICICI Prudential Discovery Fund-Dividend JM Money Manager Fund Super Plus Plan-Daily Dividend Kotak Flexi Debt Scheme Institutional-Daily Dividend Birla Sunlife Short Term Fund-Inst.45 1048.00 3000.822.00 Total Unquoted Investments Less: Provision for diminution in value of Investment Net Unquoted Investments 46268.464 0 6.75 5999.Retail Plant .300 0 99.Ddr Reliance Diversified Power Sector Fund.00 31.00 500.800 913.81 0. in lacs) 3201.00 0.00 0.87 300.Magnum Sector Funds Umbrella Contra-Dividend SBNPP Ultra ST Fund Super Institutional Daily Dividend SBNPP Select Midcap.220 0 0 0 0 0 0 0 0 0 0 0 0 1.638.12 0.533.00 560.508. 2010 2009 Megnasolance City Private Limited (Equity shares of Rs.00 0.81 44981.904 0 2.210 1.Growth Birla Sunlife Midcap Fund.00 0.71 12.748.00 0.999.00 1109.500 562.997 220.423.198.00 0.Dividend SBI.00 1000. previous year Rs.75 5999.11 500.819.078.18 As at 31st March 2009 Amount (Rs.470.44 1287.18 1 562.Megnum Global Fund.017.00 1000.07 3000.00 1000.596 2.000 5.00 0.66 458.00 0.000.28 2004.468 0 3.60 1000.00 0.Equity Plan.806.Dividend 10 5.00 0.815 1.00 0.30 500.50 per share) (Including Rs.999 3.00 0.Plan A-Dividend-Reinvestment DSP Blackrock Small & Midcap Fund-Regular Plan-Dividend DSPBR Strategic Bond Fund-Institutional Plan-Daily Dividend DSP Black Rock Strategic Bond Fund Growth HDFC Top 200 Fund-Dividend ICICI Prudential Infrstrcture Fund .337 0 3.500 60.381 0 2.934 0 0 0 0 0 118.00 0.Retail Dividend Plan Reliance Equity Opptunities Fund Retail Plan-Dividend Plan Reliance Banking Fund-Institutional Plan-Dividend Plan Reliance Income Fund -Retails Plan-Growth Option Reliance Regular Savings Fund .991 2.00 0.897.389 1.00 0.00 0.621 12.176 2.066 2.00 375.00 500.00 375.00 0.60 per share.00 1000.00 0.505 9.647 2.669 0 12.00 1000.00 621.00 1000.974.Dividend Tata Floater Fund-Daily Dividend Templeton India Equity Income Fund-Dividend Reinvestment UTI Treasury Advantage Fund-Institutional Plan-Daily Dividend Reliance Income Fund-Retail Plan-Growth Option Birla Sun Life Income Plus Growth (Prudent) IDFC Super Saver Income Fund-Investment Plan B-Growth Kotak Bond (Regular) Growth (Prudent) ICICI Prudential Instutional Income Plan Growth ICICI Prudential Flexible Income Plan Premium .30 164 annual report 2009-10 . in lacs) 3201.70 26323.305 10.00 125. As at 31st March.242.112.00 1202.00 503.82 60. Non-convertible.437.953. Rs.000.00 0.00 0.Dividend Plan SBI.799 14.960 881.00 2000.579.

EIH Limited Fame India Limited GAIL India Limited Garware Wall Ropes Limited Gujarat NRE Coke Limited Housing Development & Infrastructure Limited HEG Limited Jindal Saw Limited K S Oil Limited Kesoram Textile Mills Limited (Received persuant to a scheme of arrangement) Mount Everest Mineral water Limited Navin Flourine Limited Orbit Corporation Limited OCL India Limited Praj Industries Limited Prime Focus Limited Reliance Communication Limited Reliance Petrolieum Limited RSWM Limited Shree Global Tradefin Limited Taneja Aerospace & Aviation Limited Tantia Construction Limited Trent Limited United Phosphorus Limited Total Quoted Equity shares Total Quoted Investments Less: Provision for diminution in value of Investment Net Quoted Investments Total Investments in securities Market value of quoted investments 10 10 10 10 10 10 10 5.00 492.000.01 0.21 362.00 598.00 0.00 4000. in lacs) B] i) QUOTED In Units of Mutual Funds DWS Fixed Term Fund-Sr 68-Reg Gr DWS Fixed Term Fund-Sr 69-Reg Gr Fortis Fixed Term Fund Series 16 HDFC FMP 24M Feb10-Growth Sr Xii ICICI FMP Sr.000 156.081 131.630 77.000 0 0 0 0 0 0 0 500.00 Total Investment (I & II) 72.51-15 Month Pl E-Gr Kotak FMP 13M Series 6 .000 5.51 552.01 500.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet Nos.85 0.00 (II) Investment Property (Long term and Non-trade) Particulars As at 1-Apr-09 Leasehold Land Building Total Investment Property Previous Year 0.53 271.000 0 621.073 321.77 0.28 8248.23 46750.000 143.512 13.Growth Kotak FMP 24M Series 1-Growth In Fully Paid-up Equity Shares Advanta India Limited Balrampur Chini Mills Limited Borosil Glass Limited Brandhouse Retails Limited Bhilwara Technical Textile Limited (Received pursuant to a scheme of arrangement) Dalmia Cement Bharat Limited Dewan Housing Finance Corporation Limited Deepak Fertilisers & Petrochemicals Limited TCS E-Serve Ltd.08 28653.000.93 963.00 0.88 165.256 56.01 0.695 0 365.040 0 491.00 0.00 0.75 271.00 431.00 203.000 347.559 621.53 271.84 20427.590 0 63.000 5.00 Depreciation/Amortization As at 1-Apr-09 0.308 266.000 5.21 362.00 0.00 0.00 366.630 77.00 0.592 4.00 0.000 0 993. in lacs) As at 31st March 2009 Amount (Rs.76 431.000.950 993.000 5.981 0 347. As at Face Value Nos.74 27092.23 0.893 2.00 2613.00 500.23 20427.893 2.00 0.90 0.00 Gross Block (at cost) Additions As at 31-Mar-10 169.04 989.335.781 441.750.881 0 600.01 500.00 For the year 0.00 Net Block As at 31-Mar-10 169.950 17.000.335.69 46.00 0.91 0.00 2613.308 166.00 0.000.093 365.000 5. 31st March.91 1612.12 366.37 102.585 0 0 48. As at 31st March.00 0. Rs.00 1000.76 0.000 10.48 0.20 24653.05 As at 31-Mar-09 0.06 663.00 0.88 264.06 461.64 958.54 ii) 10 1 10 10 1 2 10 10 10 2 10 10 10 10 10 10 10 1 10 10 10 10 2 2 10 5 10 10 5 5 10 10 2 48.57 738.556 116.76 118.30 101.06 0.00 0.000.93 963.00 169.556 116.39 0.77 0.000 63.00 0.90 1.559 320.44 1176.00 20427.90 0.000 156.00 552.04 989.00 500.06 16.531 200 439.00 500.54 0.288 0 441.287 2.590 270.14 1176.565.00 0.28 0.256 56.08 0.80 14.00 0.50 0.00 501.30 0.08 1560.00 0.592 0 0 152.344.00 500.64 28286.00 996.19 2461.48 0.00 As at 31-Mar-10 0.72 219.97 5983.08 0.495 245.00 738.39 0.881 496.39 319.00 0.00 0.37 102.85 0.00 1652.03 0.981 70.49 729.90 1.326 598.54 604. 2010 2009 As at 31st March 2010 Amount (Rs.97 annual report 2009-10 165 .081 131.34 72073.29 996.531 200 439.559 472.138 191.30 1601.950 0 137.000.832 600.512 0 301.00 500.00 2461.695 651.00 729.

81 1.51 3523.39 3050.03 718.00 13832.15 36.00 15203.13 4.50 51. 2009 Amount (Rs.21 8205.42 4868.36 308.29 2746.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet SCHEDULE 8 : CURRENT ASSETS. 2010 Amount (Rs.00 2701.unless otherwise stated ) 1 Advances recoverable in cash or in kind or for value to be received Considered Good Considered Doubtful Less: Provision for Doubtful Advances 277.51 3668.00 2934.42 686.98 6893.78 0.85 189.54 32.59 144.30) 10518.77 3290.46 6897.57 4 B Other Current Assets Interest accrued LOANS AND ADVANCES (Unsecured.72 12632.27 Less : Provision for Doubtful Debts 3 Cash and Bank Balances Cash on Hand Bank Balances with Scheduled Banks (a) in Current Accounts (b) in Cash Credit Accounts (c) Fixed Deposits (d) in Escrow account .03 0.Inter-corporate deposits Considered Good Considered Doubtful Less: Provision for Doubtful Inter-corporate deposits 4 5 6 7 8 Share Application Money Balances in Excise.60 (47.44 6718. LOANS AND ADVANCES A Current Assets 1 Inventories Stores and Spares Packing Materials Finished Goods -Manufactured Goods -Traded Goods By-products Material in process Food and Beverages Raw Materials Material in transit Carbon Credits 2 Sundry Debtors (Unsecured) Considered good Exceeding 6 months Others Considered Doubtful Exceeding 6 months Others As at 31st March.77 45.39 72534.91 20392.66 7517.06 60222.15 47.30 2981.80 1301.78) 12822.30 5127.78 12844.59 1151.16 (21.03 99.08 407.09 9800. in lacs) 3241.34 3588.79 795.33 2080. in lacs) As at 31st March. Service Tax and VAT Accounts Entertainment Tax Refund Claimed Income Tax paid (net of provisions) MAT Credit Entitlement Total 166 annual report 2009-10 .32 45.07 45.29 2701.73 2448.43 108.32 3724.43 4221.29 4914.03 99.20 278.38 70.83 0.00 99.46 2 3 Deposits Current investments .93 2934.56 820.66 12822.7 in Notes to Accounts Bank Balances with Non Scheduled Banks in Current Accounts 98.03 19383.29 4868.73 0.19 3523.66 446.05 87.Refer Note No.59 1.10 144.41 1048.03 20587.30 11.25 1811.considered good.30 10565.90 17759.00 18920.00 0.17 191.61 45.38 21.39 218.21 10518.31 6769.57 0.00 2520.00 3033.00 21.79 1720.

42 605.16 714.27 46.89 237.56 872.61 53.89 687.06 18835.25 111.86 22.82 41. in lacs) SCHEDULE 10: SALES AND SERVICES Sales .66 88.08 14977.52 41260.00 2804.Gross Less: Excise Duty Sales (Net) Box Office Revenues Food and Beverages Revenues Income from Movie Rights Film Distribution Income Conducting Fees Advertising Income Management Fees Parking charges Other Operating Income Total 102602.75 653.42 21908.92 240. in lacs) Schedules Forming part of Consolidated Profit and Loss Account 2009-2010 Amount (Rs.58 9.96 100587.99 B Provisions 1 2 3 4 6 7 For Taxation ( Net of Payment) For Fringe Benefit Tax ( Net of Payment) Proposed Dividend Tax on Proposed Dividend For Gratuity & Leave Encashment For Expenses 4. in lacs) SCHEDULE 9 : CURRENT LIABILITIES AND PROVISIONS A Current Liabilities 1 Sundry Creditors .31 20786.64 205.11 36.68 3844.55 1251.81 91. 2009 Amount (Rs.76 16624.69 9.98 1647. 2010 Amount (Rs.69 3523.88 2 3 Trade Deposits Investor Education and Protection Fund shall be credited by the following amounts namely: .71 Total 44065.others 21.35 14.95 16648.67 0.Unclaimed dividends 4 5 6 Advances from Customers Other Liabilities Interest accrued but not due 161. in lacs) 107170.03 426.90 2669.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Balance Sheet As at 31st March.02 2014.20 5260.89 783.67 749.75 273.14 104501.08 126016.98 110.73 119.30 18073.58 18094.39 165.95 78.81 14924.dues to Micro and Small Enterprises .27 1351.00 70.90 127013.18 2008-2009 Amount (Rs.74 4162.19 annual report 2009-10 167 .13 As at 31st March.27 1180.

46 (910.80 128.80 1048.20 0.56 3927.11 78.66 320.30 3523.03 7918.75 0.98 6769.29 6897.05 1.96 586.56 6769.03 7918.57 101.33 72.18 45.On long term investments .00 0.25 4305.76) (4483.On Income-tax refunds .98 168 annual report 2009-10 .33 1368.91 1060.12 965. in lacs) SCHEDULE 11: OTHER INCOME Interest .91 8838.On current investments .30 (88.93 22279.61 42.58 738.On current Investments Liabilities written back no longer required Provision for doubtful advances written back Foreign Exchange Fluctuation Gain (Net) Lease Rent Miscellaneous Income Total SCHEDULE 12: (INCREASE)/DECREASE IN STOCKS Opening Stock Finished Goods Material in Process By-products Carbon Credits Less: Closing Stock Finished Goods Material in Process By-products Carbon Credits Excise Duty on Stock of Finished Goods (Net) (Increase)/Decrease in Stocks SCHEDULE 13: MATERIALS CONSUMED AND PURCHASE OF FINISHED GOODS Raw Materials consumed Packing Materials consumed Purchase of Finished Goods Cost of Food and Beverages Total 2008-2009 Amount (Rs.65 1614.42 411.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Profit and Loss Account 2009-2010 Amount (Rs.79 218.57 82.Others Dividend .59 1720.24 1016.76 2.52 1209.On long term investments .05 3193.72 9.63 249.00 101.81 0.05 1.50) 16835. in lacs) 256.On current Investments Profit on sale of investments ( Net ) .96 0.81 1048.61 0.81 313.73 7038.00 42.61 51.41 99.66 51.08 257.90 281.00 727.32 339.41 99.On long term investments .12 148.51 2445.43 1.From banks .94 15266.40 1766.00 1060.17 352.97) 3184.60 54.60 20832.

99 1420.59 227.30 27.38 250.31 2838.89 5335.32 459.02 5172.Gujarat Fluorochemicals Limited Schedules Forming part of Consolidated Profit and Loss Account 2009-2010 Amount (Rs.42 290.96 288.13 5007.02 5.45 2411.15 750.26 7173.01 5308.31 5170.84 798.94 174.00 16.00 25.43 432.95 0.12 0.27 Lacs.00 6956.17 881. 264.06 252.60 440.53 359.Others Directors’ Sitting Fees Commission to Chairman Rent and Conducting fees Rates and Taxes Travelling and Conveyance Communication Expenses Common Facility charges Legal and Professional Fees and Expenses Lease Rentals and Hire Charges Discount Loss on assets sold/scrapped (Net) Bank Charges Foreign exchange fluctuation loss (Net) Provision for doubtful debts Provision for doubtful advance Bad debts and remissions Less : Provision for Doubtful debts adjusted Commission Royalty Expenditure on Sustainable Development Plan Miscellaneous Expenses Preliminary Expenses written off Loss on Sale of long term Investments (Net) Less :Service Tax credit in respect of earlier years Total SCHEDULE 15: SALARIES AND BENEFITS Salaries.00 49813.20 0.40 6640.98 (321.84 18778. 422.23 310.21 94.45 270.32 64.24 (62.Machinery .85 218.95 6420.16 618.74 240.19 2505.71 162.79 3167.09 106.77 1519.13 1671.66 171.99 203.98 6917.16 annual report 2009-10 169 .31 111.58 46.17 0.17 48.89 192.74 12236.00 49813.44 21.14 8.18 407.98 276. Sales tax and Service tax Production Labour Charges & Outsourced Personnel Cost Processing Charges Factory Expenses Repairs to .53 0.93 2787.63 1769.80 293.56 1668.52 Lacs) Other Interest Total 2008-2009 Amount (Rs.92 118.10 1.92 2949.87 40.22) 45819. OPERATING AND OTHER EXPENSES Stores and Spare parts Consumed Power and Fuel Entertainment tax Film Distributors share Advertisement and Sales Promotion Freight and Octroi Insurance Excise duty.39 244.63 783.17 101.23 69. in lacs) SCHEDULE 14: MANUFACTURING.65 2013. Allowances and Benefits Contribution to Provident and other funds Gratuity Staff Welfare expenses Total SCHEDULE 16: INTEREST Interest on fixed loans (Net of interest capitalised Rs.84 4.33 309.34 3164. Custom Duty.92 1853.76 6444.80 343.00 16.76 222. previous year Rs.44) 187.27 162.59 0.89 648.05 82.45 329. in lacs) 1956.51 46140.00 2744.97 283.Buildings .52 8.44 876. Wages.17 733.78 30.

the Company had paid an amount of Rs.12 millions (previous year US $ 2. 16800 lacs (Previous year Rs. liabilities. 2006. Rs. 1263. Xuancheng Hengyuan Chemical Technology Co. a wholly owned subsidiary of the Company. The financial statements of the subsidiary companies and associate used in the consolidation are drawn up to the same reporting date as that of the Company viz. 16800 lacs) .00 2 Share of Profit – Up to Previous Year 1. 434. The financial statements of the joint venture are drawn up to 31. Basis of preparation and principles of consolidation The Consolidated Financial Statements relate to Gujarat Fluorochemicals Limited (‘the Company’). the Company is informed that 33.64 3 Share of (Loss)/Profit – Current Year * (2.3. 1 Particulars Book value of Investment on acquisition 2009-2010 3000. - - 2. 4.34 lacs). its subsidiary companies. The Consolidated Financial Statements have been prepared on the following basis.Gujarat Fluorochemicals Limited SCHEDULE 17: NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2010 1. holds 50% of the total equity capital of Megnasolace City Private Limited (Megnasolace). 5. the Company had entered into an agreement for formation of Joint Venture Company (“JVC”) viz. 200 lacs). equivalent to US $ 3. Inter-company balances.18 (*) The share of profit for the current year is less than Rs.net of Advance Call Money paid Rs. Nil (previous year Rs. Capital commitment towards partly paid shares of Megnasolace is Rs. The Subsidiary companies considered in the financial statements are: Name of the Company Country of Incorporation Proportion of ownership interest As at 31st March 2010 Inox Leisure Limited Inox Infrastructure Private Limited Inox Motion Pictures Limited Inox Wind Limited (incorporated on 9th April 2009) Gujarat Fluorochemicals Americas. Other Significant Accounting Policies These are set out in the notes to the accounts under “Significant Accounting Policies” of the financial statements of the Company and its subsidiaries.A. The JVC is engaged in the business of manufacture of anhydrous hydrogen fluoride and allied activities.00 2008-2009 3000. 3. 170 annual report 2009-10 .98% 100% 100% N. Investment in Associates: Inox Infrastructure Private Limited (IIPL). Ltd in the People’s Republic of China.. income and expenses.A. Accounting Standard (AS) 23 “Accounting for Investment in the Associates in Consolidated Financial Statements” and Accounting Standard (AS) 27 “Financial Reporting of Interest in Joint Ventures” as specified in the Companies (Accounting Standard) Rules.2010.93 millions) as share application money towards investment in the JVC. being the difference between the cost of investment in Subsidiary and the net asset at the time of aquisition in the subsidiary is charged to the Consolidated Profit and Loss Account in the year of acquisition of such shares.00 lacs.77% of the equity capital in the JVC has been allotted to the Company (including 31. an ‘associate’ of a subsidiary company and a joint venture (“the Group”). The financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis by adding together the book values of like items of assets. The Group’s share of the post acquisition profits is included in the carrying cost of the investment as under:Amount (Rs.2009 Goodwill on consolidation.18 3. in lacs) S. Interest in joint venture is reported using proportionate method.998% 100% As at 31st March 2009 63. During the current year. N.The Consolidated Financial Statements (CFS) are prepared in accordance with Accounting Standard (AS) 21 “Consolidated Financial Statements”.No. LLC (incorporated on 8th September 2009) India India India India USA 65. 2010.12.18 3001. The share of profit/loss of associate company is accounted under the ‘equity method’ as per which the share profit/loss of the associate company is adjusted to the cost of investment. Up to 31 st March. year ended 31. Investment in joint venture During the year ended 31st March 2008. intercompany transactions and unrealised profit or losses are fully eliminated.01 lacs – viz.89 lacs (previous year Rs 1151. Megnasolace is treated as an ‘Associate Company’ and the investment is accounted under the equity method in accordance with AS 23 – ‘Accounting for Investments in Associates’.46) 4 Carrying amount 3001. 0.71% of the equity capital allotted in earlier year).62% 100% 100% 99.

751 equity shares in Fame (India) Limited. Accordingly. ILL. Union of India. 824.288 equity shares. 2008.28% stake in Fame (India) Limited. as stipulated.00 lacs in respect of earlier years and Rs. at a price of Rs. renting of immovable property is now defined as a taxable service with retrospective effect from 1st June 2007.00 lacs in respect of current year. the Company has recomputed its current tax liability and deferred tax liability. 1994. During the current year.73 Lacs (previous year Rs.57. 192. through Enam Securities Limited. estimates of future taxable income and the extension of period for utilization of MAT credit as per the amendment made by the Finance Act (No. as per the amendment made by the Finance Act. till conclusion of the Open Offer formalities. through two separate block deals carried out on the Bombay Stock Exchange. the Company would have normal tax liability within the specified period to avail such MAT credit. in view of the Honorable Delhi High Court’s judgment dated 18th April 2009 in the case of Home Solution Retail India Ltd. has made a Public Announcement.Gujarat Fluorochemicals Limited 6.50. The Company has been advised that the compensation is a capital receipt and hence this amount is credited to Capital Reserve.75. from the market. the company has received compensation of Rs. In the opinion of management. and is awaiting its approval on the same. has acquired 1.50. as deduction. wherein it was held that renting of immovable property by itself is not a service and accordingly the levy of service tax on activity of renting immovable property is ‘ultra vires’ the Finance Act. Fame (India) Limited shall become a subsidiary of the ILL on completion of the Open Offer formalities. 7. Operating and Other Expenses. Accordingly. had clarified that such unutilized accumulated amount of service-tax as on 31st March 2008 can be utilized for payment of service tax after 1st April 2008. 1997 (“Takeover Code”). the Company has provided for the above service tax of Rs. Based on legal advice received by the ILL. (b) Till the year ended 31st March 2008. for an Open Offer of 8.751 equity shares acquired from the Promoters of Fame (India) Limited under the terms of the Share Purchase Agreement mentioned above have been placed in escrow with Standard Chartered Bank. unless otherwise used.65. and credited an amount of Rs. 51 per equity share. on the basis of projections. and the balance amount of service tax paid was charged to the Profit and Loss Account.537 equity shares in Fame (India) Limited. for phased reduction and cessation of CFC production and dismantling of plant. Provision for current tax is also made on the same basis and consequently the provision for current taxation is for Minimum Alternate Tax payable on book profit. vide Circular No CBEC No.62 lacs) in the Profit and Loss Account under ‘Taxation in respect of Earlier Years’. being 100% of the funds required under the Open Offer. during the year ended 31 st March. the Central Board of Excise and Customs. In respect of service tax matters of Inox Leisure Limited :(a) During the year ended 31st March 2009. the service tax of Rs. Accordingly.759 equity shares constituting 20% of the fully-diluted capital of Fame (India) Limited. During the year. in respect of one more multiplex during the current year. through its merchant banker. Consequently.84 lacs in respect of rentals paid during the year ended 31st March 2009 and the same is included in the amount of Service Tax charged to the Profit and Loss Account in Schedule 14: Manufacturing. comprising of 50. as per the then prevailing regulations. 2). annual report 2009-10 171 .84 lacs in respect of rentals paid during the year ended 31st March 2009 was not charged to the Profit and Loss Account. A Share Purchase Agreement between ILL and Promoters of Fame (India) Limited recording the terms and conditions of the abovementioned first acquisition has been executed. Consequent to the first acquisition above. Inox Leisure Limited (ILL).64 Lacs). ILL has further acquired another 25. 321. 137/72/2008-CX dated 21st November. as required under the Takeover Code. equivalent to US $ 1. under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations. & Others v. and the 1. 318. in addition to a few multiplexes in the last year. 292. comprising of 43. Enam Securities Limited. the Company was claiming service tax set-off in respect of service tax paid.57. 8.48% stake in Fame (India) Limited.22 lacs and the same was shown separately in the Schedule 14: Manufacturing. comprising of 7. to the extent of 20% of service tax collected.07. the Company has now recognized the MAT credit entitlement of Rs.37 million). 2010. being the Promoters’ shareholding. filed a Draft Letter of Offer with the Securities and Exchange Board of India.21% stake in Fame (India) Limited. During the year ended 31st March 2009. the Company has placed Rs 42 crores. As a result of the above acquisitions.63 lacs (Previous year Rs. Further. 2009. 629. through a block deal carried out on the Bombay Stock Exchange. the Company holds 1. ILL has. 978. Company’s Subsidiary. treating the amount of entertainment tax exemption amounts as a capital receipt in respect of multiplexes in those States covered by the orders of the Commissioner of Income-tax (Appeals). in escrow with HDFC Bank.231. Operating and Other Expenses.75 million (previous year US $ 1. 1022. In respect of income-tax matters of Inox Leisure Limited :(a) In the appellate proceedings before the Commissioner of Income-tax (Appeals) the Company’s contention that the amount of entertainment tax exemption availed for some of its multiplexes is a capital receipt has been accepted. 9. 2009 the Company had taken credit for such unutilized accumulated amount of service tax of Rs. 318. (b) The Minimum Alternate Tax (MAT) paid by the Company is entitled to be carried forward and utilized in subsequent years. During the year.

25 53.No. Estimated amount of contract remaining to be executed on Capital Account and not provided for. The Company had commenced arbitration proceedings against Gujarat Gas Company Limited (GGCL). (b) (c) 11. Accordingly the amount of Rs 277. in lacs) Particulars Sales Tax Income Tax Service Tax Bills discounted Bank Guarantees Claims against the Company not acknowledged as debts Municipal Tax Entertainment Tax Service Charge Claims in respect of labour matters 2009-2010 7. from US $ 4.12 107.00 lacs.55 59.51 48.94 lacs). 2119. In respect of Entertainment Tax liability of Inox Leisure Limited : (a) The exemption from payment of Entertainment Tax in respect of Multiplexes of the Company. 2009. In lacs) 2009-2010 (A) Deferred Tax Assets (Net) (i) Retirement Benefits Total 0. 2886.44 19.27 104. Income Tax and Service Tax demands and not charged to the Profit and Loss Account. The Entertainment Tax exemption in respect of some of the Multiplexes of the Company has been accounted on the basis of eligibility criteria as laid down in the respective Schemes but is subject to final Orders yet to be received from respective authorities.74 0.61 5882.06 14. 10379.12 lacs) The major components of the net deferred tax assets and liability are as under : a) In respect of Deferred Tax Assets (Net) : Amount (Rs.11 53.38 per MMBTU (plus applicable taxes thereon). is charged to books of accounts in the Power & Fuel expenses in this year on settlement during the year. amounting to Rs.30 1346.Rs. and purported increase in price of gas supplied. 30.62 per MMBTU (plus applicable taxes thereon). the issues in respect of the eligibility for exemption from payment of entertainment tax and the method of computing the exemption availed. In respect of the Multiplex Cinema Theatre at Vadodara. which are eligible for such exemption. 3582. 2008.34 lacs) has been paid in respect of above Sales Tax.Rs. 2009.40 lacs (as on 31st March 2009 . Contingent liabilities not provided for in respect of: Amount (Rs. the difference @ US $ 5.53 402. 14. Particulars 172 annual report 2009-10 .06 0.60 per MMBTU (plus applicable taxes thereon) to US $ 24.29 1321.94 lacs (previous year Rs. Pending receipt of final eligibility certificate the figures indicated in the above note include the figures pertaining to the said Multiplex. Since this gas supply was accounted earlier at a price of @ US $ 4. 12.42 2008-2009 27. 408. net of advances Rs.00 2008-2009 13.Gujarat Fluorochemicals Limited 10. These proceedings have been settled out of Court with GGCL on 17th December. and it has been agreed that the amounts paid by GFL to GGCL pursuant to the interim orders of the Honorable High Court of Delhi.32 29. Cumulative amount as on 31 st March 2010 .00 0. 36. 2372.74 0. 2008 and 31st December. at US $ 10 per MMBTU (plus applicable taxes thereon).81 1443.14 88. have been decided in favour of the Company by the Honourable High Court of Gujarat vide its order dated 26th June.62 per MMBTU (plus applicable taxes thereon). S.91 lacs) being Entertainment Tax in respect of such Multiplexes has not been charged to profit & loss account.00 Amount is not ascertainable Note: Amount of Rs. is subject to fulfillment of the terms and conditions of the respective Government policies issued in this regard. 2008 and had also approached the Delhi High Court for interim protection. for supplies made from April.35 lacs (previous year Rs. 2008 till December. shall be the final agreed price for supplies made during 1st April.14 lacs (Previous year Rs. for purported termination of the Gas Supply Agreement.

69 303. which can be further extended at the mutual option of both the parties.90 1323. 3012.39 2941. Payable in future Amount (Rs.52 38.43 2. in lacs) 2009-2010 (i) (ii) (iii) (iv) Gross carrying amount of asset given on operating lease included in Buildings & Road block of fixed assets.No.12 97. These arrangements are for a period of 9-25 years with a minimum lock-in period of 3-10 years and the agreement provides for escalation in rentals after pre-determined periods.85 10859. Particulars In respect of plant taken on operating lease: The lease is for an initial non-cancellable period of ten years. 2633.28 141.74 2008-2009 35.28 2008-2009 S.56 14.45 14. The future minimum lease payments under this lease arrangement are as under:S.90 2008-2009 914.26 2959.24 2117.02 c) Operating leases for some of the multiplexes of Inox Leisure Limited – The Company is operating some of the multiplexes under Operating Lease / Business Conducting Arrangement.38 48.No.28 141.71 10856. Property Rent and Conducting Fees of Rs.07 lacs) are included in ‘Property Rent and Conducting Fees’ in Schedule 14 to the Profit and Loss Account annual report 2009-10 173 . The non-cancellable initial lease tenure is for five to nine years. The details of carrying amount of assets given on lease and the future minimum lease payments are as under : Particulars Amount (Rs.00 11676.52 53. in lacs) 2009-2010 a) b) c) Not later than one year Later than one year and not later than five years Later than five years 35. Disclosure as required by Accounting Standard – AS 19 on “Leases” – a) In respect of Assets given on Operating Lease : Assets given on operating lease are Office Premises.67 11676.90 295.93 11332.20 737. which can be further extended at the mutual option of both parties.92 52.78 250.61 10555. Accumulated Depreciation as at the end of the year Depreciation for the year Future minimum lease payments (a) (b) (c) b) Not later than one year Later than one year and not later than five years Later than five years 775. In lacs) 2009-2010 (A) Deferred Tax Liabilities (i) (ii) Depreciation (Net) Amortization of Film Distribution Rights and Prints cost Total (B) Deferred Tax Assets (i) (ii) Expenditure allowable on payment basis Others Total Net Deferred Tax Liability (A-B) 15. The lease rentals are included in Rent and Conducting Fees in Schedule 14 to the Profit and Loss Account.12 61.03 lacs (Previous year Rs.55 343.71 0.12 914.Gujarat Fluorochemicals Limited b) In respect of Deferred Tax Liabilities (Net) : Amount (Rs.

( up to 17 th September.40 52.Gujarat Fluorochemicals Limited The future minimum lease / conducting fees payments under these arrangements are as under: S. 16.00 119.57 15271.20 17. has significant influence Devansh Gases Private Limited Devansh Trading and Finance Private Limited Inox India Limited Inox Air Products Limited Inox Leasing & Finance Limited. Inox Leisure Limited has recognised provision towards estimated liability in respect of municipal taxes payable for one of its multiplexes as under :Particulars Opening Balance Provided during the year Paid during the year Closing balance Amount (Rs.Inox Leasing & Finance Limited (w. range between 11 months to 5 years and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals are charged as “Rent and Conducting Fees” in Schedule 14 to the Profit and Loss Account and Schedule 6: Pre-operative Expenditure Pending Allocation.K.e. in lacs) 2009-2010 111. in lacs) 2009-2010 a) b) c) d) Not later than one year Later than one year and not later than five years Later than five years 3613. 18th September 2008 – see note (a)) Other related parties with whom there are transactions during the year: Joint Venture Xuancheng HengYuan Chemical Technology Co. Generally.(XHCT Co.20 52.47 12300.f. Related Party Disclosures : (i) Names of Related Parties (A) (B) Where control exists: Holding Company.07 Other significant leasing arrangements are in respect of operating leases for premises (offices and residential accommodations) taken on lease. Payable in future Amount (Rs. or his relative.70 57192.93 2008-2009 2932.Ltd. 2008 – see note (a)) Inox Chemicals Private Limited Refron Valves Limited Rajni Farms Private Limited Sidhapavan Trading and Finance Private Limited Siddho Mal Investments Private Limited 174 annual report 2009-10 .80 45.09 46870.00 111.00 2008-2009 88.80 30.Ltd) Associates of a subsidiary Megnasolace City Private Limited Key Management Personnel Shri V K Jain (Managing Director) Shri D K Sachdeva (Whole Time Director) Shri J S Bedi (Whole Time Director ) Shri Alok Tandon Relatives of Key Management Personnel Shri D K Jain (Father of Shri V K Jain) Shri P K Jain (Brother of Shri V K Jain) Shri Devansh Jain (Son of Shri V. Jain) Enterprises over which Key Management Personnel.No. these lease arrangements are non-cancellable.

Gujarat Fluorochemicals Limited
(ii) Particulars of transactions: Holding Company Associate Company Joint Venture Key Management Personnel 2009-10 2 0 0 8 - 0 9 Relative of key Management Personnel 2009-10 2 0 0 8 - 0 9

(Amount Rs. in lacs)
Enterprises over which KMP has significant influence 2009-10 2008-09 Total

Particulars

2009-10 A) Transactions during the year Sales of Goods Inox Air Products Limited Others Total Purchase of Goods Inox Air Products Limited Inox India Limited XHCT Co. Ltd Others Total Advance Call Money Megnasolace City Private Limited Total Equity shares Subscribed XHCT Co. Ltd Total Expenses (Repairs) Inox India Limited Refron Valves Limited Total Interest Paid Inox Leasing & Finance Limited Total Reimbursement of expenses (paid) Inox Air Products Limited Inox India Limited Inox Leasing & Finance Limited Total Reimbursement of expenses (received) Inox India Limited Inox Leasing & Finance Limited Others Total Rent Received Inox Air Products Limited Others Total Rent & Lease Rentals paid Inox Air Products Limited Devansh Gases Private Limited Inox Leasing & Finance Limited Others Total O&M Charges paid in respect of leased plant Inox Air Products Limited Total Remuneration paid Shri V K Jain Others Total Commission paid to Chairman Shri D K Jain Total 49.78 49.78

2008-09

2009-10

2008-09

2009-10 2 0 0 8 - 0 9

2009-10

2008-09

16.97 0.04 17.01 70.08 2902.62 143.86 0.00 0.00 143.86 0.00 0.00 200.00 200.00 0.00 0.00 0.50 2.87 3.37 0.00 0.00 4.93 0.55 0.00 5.48 4.81 0.43 0.00 0.43 0.00 0.00 0.00 0.00 4.81 0.00 2972.69

7.25 0.12 7.37

16.97 0.04 17.01

7.25 0.12 7.37 104.74 3145.26 0.00 0.46 3250.45 200.00 200.00 0.00 0.00 4.25 1.69 5.94 0.00 0.00 4.30 0.00 0.80 5.10 6.12 0.00 0.39 6.51 126.00 0.72 126.72 46.94 18.00 36.00 1.20 102.14 57.67 57.67 2073.31 109.13 2182.44

104.74 70.08 3145.26 2902.62 143.86 0.46 0.00 3250.45 3116.55 0.00 0.00

1263.89 1263.89

1263.89 1263.89 4.25 1.69 5.94 0.50 2.87 3.37 49.78 49.78 4.30 0.00 0.80 5.10 6.12 0.39 6.51 126.00 0.72 126.72 46.94 18.00 18.00 82.94 57.67 57.67 4.93 0.55 0.76 6.24 4.81 0.43 0.00 5.24

0.76 0.76

0.00 0.00

137.03 0.72 137.75

137.03 0.72 137.75

36.00 36.00

18.00 1.20 18.00 1.20 1.20 1.20

47.95 18.00 0.00 65.95

47.95 18.00 36.00 1.20 103.15

52.31 52.31 1818.41 115.63 1934.04 2073.31 103.75 2177.06

52.31 52.31 1818.41 121.01 1939.42

5.38 5.38

5.38 5.38

440.34 440.34

0.00 0.00

440.34 440.34

0.00 0.00

annual report 2009-10 175

Gujarat Fluorochemicals Limited
(Amount Rs. in lacs)
Particulars Holding Company Associate Company Joint Venture Key Management Personnel 2009-10 2 0 0 8 - 0 9 Relative of key Management Personnel 2009-10 2 0 0 8 - 0 9 0.40 0.05 0.45 0.80 0.05 0.85 Enterprises over which KMP has significant influence 2009-10 2008-09 Total

2009-10 Sitting Fees Shri D K Jain Shri P K Jain Total B) Amounts outstanding Megnasolace City Private Limited Equity shares XHCT Co. Ltd Equity shares Total Amount payable Shri V K Jain Shri D K Jain Inox Leasing & Finance Limited Others Total

2008-09

2009-10

2008-09

2009-10 2 0 0 8 - 0 9

2009-10 0.40 0.05 0.45

2008-09 0.80 0.05 0.85

3000.00

3000.00 1263.89 0.00 0.00 1219.80 1335.72 304.28 0.00 0.00 0.00 203.45 203.45

3000.00 1263.89 4263.89 1219.80 304.28 500.00 181.19 222.67 181.19 2246.74

3000.00 0.00 3000.00 1335.72 0.00 0.00 185.59 1521.31

3000.00

3000.00

1263.89

500.00 500.00

0.00 13.93 0.00 13.93 0.00 0.00 4.84 1224.64 4.40 1340.12 0.45 304.73

Notes :a) Inox Leasing & Finance Limited (ILFL) was an “Enterprise over which Key Management Personnel, or his relative, has significant influence. ILFL has become a Holding Company w.e.f 18th September, 2008. Hence, transactions upto 17th September 2008 are classified as transactions with “Enterprises over which Key Management Personnel, or his relative, has significant influence” and transactions w.e.f. 18th September 2008 are classified as transaction with “Holding Company”. Information about Primary (Business) Segments. Description [I] Segment Revenue i. Chemicals ii. Multiplexes iii. Power iv. WTG v. Other Segment ,Un allocable and Corporate Total Segment Revenue Less : Inter Segment Revenue - Power - WTG - Others Total External Revenue [II] Segment Result i. Chemicals ii. Multiplexes iii. Power iv. WTG v. Other Segment ,Un allocable and Corporate Total Segment Result (Less)/Add: Un-allocable (Expenses)/Income (net) Less :Interest expenses Total Profit Before Tax Less : Taxation (including Deferred tax and Fringe Benefit tax) Net Profit After Tax Amount (Rs. in lacs) Year Ended 31.03.2010 91523.33 25360.09 24064.77 784.95 5871.65 147604.78 13759.12 784.95 5.86 133054.84 39110.87 2057.46 4016.45 (105.62) (639.13) 44440.02 1742.34 5170.02 41012.34 6001.82 35010.52 Year Ended 31.03.2009 102225.32 22516.73 17017.73 0.00 3084.17 144843.95 14554.68 0.00 82.10 130207.17 50732.51 2508.86 6469.77 0.00 (286.09) 59425.05 (4941.03) 5335.16 49148.86 13001.35 36147.52

18.

Segment Information A)

176 annual report 2009-10

Gujarat Fluorochemicals Limited
Amount (Rs in lacs) Particulars [III] Other Information a] Segment Assets i. ii. iii. iv. v. Total b] Segment Liabilities i. ii. iii. iv. v. Total c] Capital Expenditure i. ii. iii. iv. v. Total d] Depreciation & Amortization i. ii. iii. iv. v. Total e] Non-cash expenses (other than depreciation) i. ii. iii. iv. v. Total B) Information about Secondary (Geographical) Segments. Amount (Rs in lacs) Particulars Domestic Overseas Total 2009-2010 60279.33 65736.85 126016.18 2008-2009 45279.07 81734.12 127013.19 Chemicals Multiplexes Power WTG Other Segment ,Un allocable and Corporate 0.00 16.22 0.00 0.00 1559.84 1576.06 0.00 0.00 0.00 0.00 268.09 268.09 Chemicals Multiplexes Power WTG Other Segment ,Un allocable and Corporate 3374.76 1493.87 2448.97 17.90 454.99 7790.50 2915.33 1225.12 1666.08 0.00 562.15 6368.69 Chemicals Multiplexes Power WTG Other Segment ,Un allocable and Corporate 7880.99 4246.37 17887.70 7898.81 904.70 38818.56 4791.24 4699.82 16088.57 0.00 758.68 26338.31 Chemicals Multiplexes Power WTG Other Segment ,Un allocable and Corporate 32371.78 4339.84 1343.78 2122.34 77099.57 117277.31 21694.50 2848.51 182.15 0.00 90080.94 114806.10 Chemicals Multiplexes Power WTG Other Segment ,Un allocable and Corporate 91129.44 39979.13 63458.97 10744.07 90834.08 296145.70 99547.59 35292.78 50447.13 0.00 77178.43 262465.93 Year Ended 31.03.2010 Year Ended 31.03.2009

annual report 2009-10 177

08 75. The above segment information includes the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis. the entire production is indigenously sold. Defined Contribution Plans: Contribution to Provident Fund of Rs.2010 202. assets and liabilities to these geographical segments.34 24.57 358.26) 438. d. In respect of power segment.65 13.42 4.09) 79. PT-PTFE and revenue from Carbon Credits.63 102.Gujarat Fluorochemicals Limited C) Notes 1) The Company operates in following business segments: a.44) (120.09) 202.49 (120.73 13. as appropriate. Actuarial Assumptions Discount Rate Salary Escalation Rate Retirement Age Withdrawal Rates Mortality 5% to 10% 8% 7% to 8% 111.00) (1.25 (51.81 20. the entire production is indigenously sold/consumed.2009 175.81 (31. Employee Benefits: a) b) Amount (Rs. 3) Chemicals .99 As at 31. The disclosures regarding geographical segments are made accordingly.42 77. Chloromethane. 4) 19. 236. All multiplexes are located in India and all movies are distributed/produced in India. PTFE.49 104. e.24 7% 6% to 8% 8% 7% to 8% 7% 6% to 8% 58 years to 60 years 5% to 10% 5% to 10% 5% to 10% LIC (1994-96) published table of rates 178 annual report 2009-10 .36 As at 31. Inter-segment revenue comprises of:- Chemicals business is operated in two geographical markets. Film distributors’ share in respect of movies distributed by Inox Leisure Limited and exhibited in its multiplexes and is priced at market value. 2) a. Multiplex – Operating & Managing Multiplex Entertainment Centres WTG – Manufacture of Wind Turbine Generators Other Segment – Distribution of Movies and Film Production.49 111.99 24.06 12.86 104.08 (8. Expenses recognized in the Profit and Loss Account Current Service Cost Interest Cost Actuarial (Gain)/Loss Expenses recognized in the Profit and Loss Account 3.2009 288.49 (38.3. Power . in domestic and overseas market.00) 180.3. c. In respect of WTG.57) (8. b.42 As at 31. The manufacturing facilities of chemicals business are common for India and overseas market and hence it is not possible to directly attribute or allocate on a reasonable basis the expenses.08 20.3. Caustic-Chlorine.31 lacs) is recognized as an expense and included in ‘Contribution to Provident & Other Funds’ in the Profit and Loss Account.73 77. Anhydrous Hydrochloric acid.25 12. in lacs ) Particulars Gratuity Leave Encashment As at 31.95) 4.34 (18. Defined Benefit Plans: In respect of Gratuity and Leave Encashment – as per Actuarial valuation.20) (38.Comprising of Refrigerant gases.3. c.26) 97.2010 1.Comprising of Power Generation. Power generated that is captively consumed in Chemical and Multiplex Business and is priced at market value or estimated market value. Wind Torbine Generators manufactured by WTG Segment is capitalized as fixed assets in Power Segment and is priced at estimated market value.64 (20. Change in Benefit Obligation Liability at the beginning of the year Interest Cost Current Service Cost Benefit paid Actuarial (Gain)/Loss Liability at the end of the year 2.63 358. b.50 lacs (Previous year Rs. 257.86) 75.

32 1.61 77.Gujarat Fluorochemicals Limited The above defined benefit plans are unfunded.32 2008-2009 50. in lacs) Equity shares outstanding at the beginning of the year – (Nos. The estimate of future salary increase.34 81. Small and Medium Enterprises under Micro. 2006 at the year end.32 7.50 0. 2006 up to the year end. Interest accrued and due to suppliers under MSMED Act. seniority.No.) 2009-2010 2008-2009 34087. Calculation of Earnings Per Share (EPS): 2009-2010 19.41 2050.03 281.22 2.) Weighted Average equity shares outstanding for the year – (Nos. Amount (Rs. Interest accrued and not paid to suppliers under MSMED Act. considered in actuarial valuation.94 Nil 1. take account of inflation.24 2127. promotion and other relevant factors such as supply and demand in the employment market.85 3. Details of the Company’s share in Joint Venture included in the Consolidated Financial Statement after elimination of Share Capital. Inter Company transaction and balances are as under: Amount (Rs.2006 on the above amount. 21.30 115780000 5930000 109850000 113711390 1 31.) Equity shares outstanding at the end of the year – (Nos.91 109850000 0 109850000 109850000 1 31.) Nominal value of each share – (Re) Basic and Diluted Earnings per share (Rs. Small and Medium Enterprises Development Act. 2006. 2006 (Sec 16) during the year Interest due and payable to suppliers under MSMED Act. 20.85 659.34 1.47 S. in lacs) Particulars Principal amount due to suppliers under MSMED Act.62 84. The Particulars of dues to Micro.) Equity shares bought back – (Nos.02 b) c) d) e) f) g) 22. in lacs) Particulars SOURCES OF FUNDS Shareholders’ Funds Reserves and Surplus Loan Funds Unsecured Loans Total Sources of Funds APPLICATION OF FUNDS Fixed Assets (a) Gross Block 2332. Payment made to suppliers (other than interest) beyond the appointed date during the year Interest paid to suppliers under MSMED Act.13 666. 2006 for payments already made.45 2. unpaid at the year end.03 35268.19 Current Year ( b ) Less : Depreciation (c) Net Block ( d ) Capital Work-in-progress Total Fixed Assets annual report 2009-10 179 .Profit after taxation – including share in profit of the Associate and after minority interest in the profit for the year (Rs. a) Particulars Amount used as the numerator .

Operating and other Expenses Salaries and Benefits Interest Depreciation & Amortization Total Expenditure Profit before Taxation Profit brought forward from previous year Balance Carried to Balance Sheet 1937.28 (84. JAIN Director 180 annual report 2009-10 .27) 31.01 84.10 2287.45 183.05 Sub-Total (ii) Net Current Assets (i) .66 328. P.38) 234.36 (266.59 2278. S. in lacs) Particulars Current Assets.46 761.Gujarat Fluorochemicals Limited Amount (Rs.07 2021.91 189.89 Current Year ( b ) Sundry Debtors (c) Cash and Bank Balances ( d ) Loans and Advances Sub-Total (i) Less : Current Liabilities and Provisions (a) Liabilities 846.59) As per our report of even date attached For PATANKAR & ASSOCIATES Chartered Accountants S.39 59.84 233.11 38. K. Loans and Advances (a) Inventories 243. AGRAWAL Partner Place : Pune Dated : 22nd May 2010 V.31 6. K. JAIN Managing Director DEEPAK ASHER Director Place : Noida Dated : 22nd May 2010 D. V.(ii) Profit & Loss Account Total INCOME Sales and Services Other Income Total Income EXPENDITURE Materials Consumed and Purchase of Goods Manufacturing.08 1766. JAIN Chairman B.28 846.69 (234. DESAI Company Secretary SHAILENDRA SWARUP Director S.

................................................... Panchmahal.. 2010 at 11.................... 26 & 27...../Client ID No................................................ or failing him................................. 26 & 27..........being a member/members of GUJARAT FLUOROCHEMICALS LIMITED hereby appoint............................. 16/3.............................. Ranjitnagar 389 380 Taluka Ghoghamba............ Office : S/No......................... Affix Re 1/Revenue Stamp NOTE: The Proxy Form must be returned so as to reach the Registered Office of the Company not less than 48 hours before the time for annual report 2009-10 181 holding of the aforesaid meeting........................m.. PROXY FOLIO NO.................................... Ranjitnagar 389 380.................................. The Proxy need not be a member of the Company...................... Dist...................................... 2010 and at any adjournment thereof... I/We ........../Client ID No................................................................. day of............................................. Panchmahal....................................................................................................................... Dist.................................. No.............................. Gujarat.................................... as my/our proxy to vote for me/us and on my/our behalf at the TWENTY-THIRD ANNUAL GENERAL MEETING of the Company to be held on Saturday...... of ................................... 2010........... the 10th July...................................................... Panchmahal...........................30 a... Ranjitnagar 389 380 Taluka Ghoghamba.................... ATTENDANCE SLIP FOR ANNUAL GENERAL MEETING PLEASE FILL IN ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL NAME AND ADDRESS OF THE SHAREHOLDERS FOLIO NO.Gujarat Fluorochemicals Limited GUJARAT FLUOROCHEMICALS LIMITED Regd.................... I hereby record my presence at the TWENTY-THIRD ANNUAL GENERAL MEETING of the Company to be held on Saturday................ 16/3. of Shares held................................................................ SIGNATURE OF THE SHAREHOLDERS OR PROXY (TEAR HERE) GUJARAT FLUOROCHEMICALS LIMITED Regd........ of ................................................. Taluka Ghoghamba.................... at S/No....................... Gujarat................................................................... the 10th July........... Dist....................... 26 & 27.......................................... of .......................................................................................................... Gujarat...... Office : S/No................... Signed this . 16/3.. ...................

IN I S TE NT PA IO G E NA LL H A Y LE S FT B BL E E AN N K TH .