2007-08 Annual Reoprt | Dividend | Income Statement

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com Annual General Meeting : Monday. Kulkarni Nasser Munjee N. 2008 at 3. Jhaveri S. N.30 p. Blunt & Caroe Auditors Messrs Deloitte Haskins & Sells. Bilgi Share Service Centre T. Khurody N. Kulkarni Overseas Emirates Bank International pjsc (UAE) Union National Bank (UAE) Abu Dhabi Commercial Bank (UAE) HSBC Bank Middle East Limited (UAE.m. Kadam Marg. Tata Registered Office Voltas House ‘A’. J. Visit us at www. V.BOARD OF DIRECTORS Chairman Managing Director Directors Ishaat Hussain A. D. Dhume M. Miyajiwala Sanjay Johri S. Soni P. Chinchpokli. Bahrain) The Commercial Bank of Qatar (Qatar) Standard Chartered Bank (Singapore) First Gulf Bank (UAE) Doha Bank (Qatar) REMUNERATION COMMITTEE Chairman S. A. at Birla Matushri Sabhagar. Gole S. B. 19. Malhotra AUDIT COMMITTEE Chairman N. K. D. Joshi Vice Presidents A. J.com . D. Mumbai 400 033 email: shareservices@voltas. Dr. P. Mumbai 400 020.voltas. Qatar. Kulkarni Ravi Kant N. Tata Solicitors Messrs Mulla & Mulla and Craigie. M. BNP Paribas Export . Jhaveri SHAREHOLDERS/INVESTORS GRIEVANCE COMMITTEE Chairman N. N. General Manager . Jhaveri Nasser Munjee S. Soni Nasser Munjee N. Chartered Accountants Bankers In India State Bank of India Bank of India Punjab National Bank Citibank N. N. Mumbai 400 033 CORPORATE MANAGEMENT Managing Director Executive Vice Presidents A. J. 28th July.Import Bank of India ABN Amro Bank N. Sir Vithaldas Thackersey Marg. J. D. Venkatraman A.Taxation & Company Secretary V. Babasaheb Ambedkar Road.

3 52365 1088 218 7201 30 144143 1953 108570 32264 (14435) 5747 504 5766 4. Excise Duty) OPERATING.1 3155 1654 50 24858 16615 4622 14974 2153 — 29992 3305 16046 19351 58. Rs. Rs. Rs. Rs.High 22. % % Rs.62 96312 *120 *75 8214 22 190418 2431 145162 35899 (17623) 5390 (2619) 9169 4. 3. 7. 11.2 4785 1985 60 28074 14592 6103 9089 2668 — 31342 3306 20835 24141 72. 18. 19. Rs.1 48. Rs. Rs. 14. Rs. RETAINED PROFIT DIVIDEND ON EQUITY CAPITAL Percentage FIXED ASSETS (AT COST) DEPERECIATION INVESTMENTS NET CURRENT ASSETS DEFERRED TAX ASSET DEFERRED REVENUE EXPENDITURE TOTAL ASSETS SHARE CAPITAL RESERVES AND SURPLUS SHAREHOLDERS’ FUNDS Equity per Share Earnings per Share Number of Shareholders Share Prices on Stock Exchange .8 60622 159 50 8324 44 8. Rs. BORROWINGS Debt/Equity Ratio (Percentage to Shareholders’ Funds) Note : All amounts are Rupees in lakhs except those marked = * Face Value of Re. 4.6 48.= Rs. 16. Rs.8 29. Rs.48 15.2 725 5041 3. 6. 13.50 *5. % % Rs.96 21.0 52. TAXATION PROFIT/(LOSS) AFTER TAXATION Percentage to Sales Percentage to Shareholders’ Funds 10.12 11.27 *6.5 17. Rs. Nos.8 38. 12.0 19.30 81371 *267 *79 4767 9 245078 3071 186100 46537 (24008) 5848 6771 22283 9.7 29.5 9917 20837 6.2 784 3903 2. 15.9 20. 5. % Rs. 9.= Rs.3 2120 7049 3. % .5 26. ADMINISTRATION AND OTHER EXPENSES Staff Expenses (included in 3 & 4) Number of Employees (including Contract Staff ) EXCEPTIONAL INCOME/(EXPENSES) PROFIT/(LOSS) BEFORE TAXATION Percentage to Sales Percentage to Total Assets Rs.Low 308617 3167 227671 56346 (27685) 7378 2987 30754 10.= Rs. Rs. SALES AND SERVICES OTHER INCOME COST OF SALES AND SERVICES (incl. Rs. 1 each . Rs. 17. Rs. 2.7 15610 4467 135 28178 12228 26793 13813 2043 — 58599 3307 50525 53832 *16.1 3675 18608 7. 20.= Nos. Rs. Rs. Rs.9 14737 3309 100 24493 11506 13741 16594 2967 — 46289 3307 34768 38075 *11. 21.2 53674 248 88 10641 55 132994 1688 100562 30422 (12619) 4484 989 4687 3.VOLTAS Annual Report 2007-2008 HIGHLIGHTS 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 1.6 2783 993 30 24751 12491 4547 9396 1021 — 27224 3305 15595 18900 57.

5 4.1 23 98 10 5014 1580 512 6583 — — 10529 978 2002 2980 305 12 45237 470 356 7549 253 15934 40 13856 1955 (1031) 7252 — 163 1.9 1.6 59 38 15 447 82 67 867 — — 1299 255 295 550 216 38 7356 276 183 749 136 991 2 815 153 (109) 2324 — 25 2.0 14 558 0.9 81750 142 32 18782 123 81089 759 60368 19225 (9997) 10667 (78) 2177 2.2 997 1158 35 30651 10718 8245 14230 — 720 43128 3428 13048 16476 49.5 6.5 53 3 – 336 — — 386 150 4 154 1027 93 150 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 232 151 22 .3 141 97 2.9 (12) 1683 1.8 2.1 133 1279 1.4 9.7 7.5 1.5 1.4 839 397 12 22605 9914 9033 12180 — 156 34060 3305 11973 15278 46.5 347 2558 2.4 11.7 3.1 6 8 5.9 1624 827 25 23987 11799 3626 7107 1375 899 25195 3305 12811 16116 48.6 83 80 0.1 15.6 109 397 12 23852 10870 4230 8140 — 4222 29574 3305 12082 15387 46.2 3.Rs.6 120 397 12 26328 12097 3127 5962 — 5634 28954 3305 12202 15507 46.3 17.8 5.5 6.0 4.5 6.8 5.9 18.7 2.5 11 14 1. in Lakhs 2002-2003 2001-2002 2000-2001 1999-2000 1998-1999 1994-1995 1984-1985 1974-1975 1964-65 1954-55 123041 1413 101926 20122 (12573) 5147 499 2905 2.4 4.0 5 2172 2.0 1088 596 18 23140 10500 3139 6241 1169 5317 28506 3305 15496 18801 56.7 13.1 76512 57 31 9705 52 85372 1211 66223 18641 (10030) 5314 (1147) 572 0.7 5.3 8.7 5 75 12 1232 642 132 2859 — — 3581 623 570 1193 191 13 14395 211 125 2388 200 4223 5 3468 522 (363) 5082 — 238 5.7 72174 66 42 9079 56 94066 1243 74302 19190 (10982) 5096 (146) 1671 1.6 3.7 83615 60 26 13447 87 78639 1653 60253 19349 (10939) 6701 (94) 596 0.7 87192 142 33 14187 92 98428 1451 77135 23936 (14072) 8796 2604 1412 1.1 Nil 121 0.0 46 550 0.8 84180 176 92 26652 162 26607 150 21080 5556 (3170) 8147 — 121 0.8 9.

VOLTAS Annual Report 2007-2008 CONTENTS Significant Trends at Voltas 1-2 Consolidated Financial Statements Report of the Board of Directors 3-7 Auditors’ Report 77 Annexures to the Directors’ Report 8-15 Balance Sheet 78 Management Discussion and Analysis 16-26 Profit and Loss Account 79 Report on Corporate Governance 27-36 Cash Flow Statement 80 Auditors’ Report 37-39 Schedules forming part of the Consolidated Balance Sheet and Profit and Loss Account 81-102 Balance Sheet 40 Details of Subsidiary Companies 103 Profit and Loss Account 41 Cash Flow Statement 42 Schedules forming part of the Balance Sheet and Profit and Loss Account 43-75 Balance Sheet Abstract and Company’s General Business Profile 76 .

impact of which has resulted into an increase of 18% DEBT/EQUITY RATIO .% ROCE % 1 . in crores) * Due to one–time large exceptional income.SIGNIFICANT TRENDS AT VOLTAS SALES AND SERVICES PAT % TO AVERAGE SHAREHOLDERS’ FUNDS * (Rs.

in crores) 2 .VOLTAS Annual Report 2007-2008 SIGNIFICANT TRENDS AT VOLTAS DIVIDEND % ON EQUITY CAPITAL EARNINGS PER SHARE (RS.)* * Face Value of Re. 1 each PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS AS % TO TURNOVER CASH GENERATED FROM OPERATIONS (Rs.

2008. depreciation and exceptional items Adjusting from the above: Financial items Depreciation Profit before exceptional items Exceptional Items Profit before tax Deducting provision for taxation including deferred tax Profit after tax Adding thereto: Balance brought forward from the previous year Amount transferred from Foreign Projects Reserve Profit available for appropriations Appropriations: General Reserve Proposed Dividend Tax on Dividend Leaving a balance to be carried forward 14000 4467 759 5860 2006-2007 Rs. FINANCIAL RESULTS 2007-2008 Rs. The Profit for the year after meeting all expenses but before financial items. in Lakhs 28253 13963 (869) 1356 27766 2987 30753 9917 20836 (2781) 1232 15512 6771 22283 3675 18608 4000 250 25086 2485 344 21437 13566 3309 562 4000 3 .REPORT OF THE BOARD OF DIRECTORS To the Members Your Directors have pleasure in presenting their Fifty-fourth Annual Report and the Accounts for the year ended 31st March. in Lakhs 2.

26 crores to a negative Rs. 139 crores. Mining and Construction business continued to remain buoyant. Products Business Group. 3736 crores and the carry forward order book position as on 31st March. The Company’s dividend policy is based on the need to balance the twin objectives of appropriately rewarding the shareholders with cash dividend and of conserving resources to meet the Company’s needs. Net working capital requirements of the Company went up during the year 2007-08 in line with the expansion in various businesses. Despite Rupee appreciation against US Dollar. introduction of star rated energy efficient products. The turnover of the business improved by 37% and volume growth exceeded 30%.VOLTAS Annual Report 2007-2008 REPORT OF THE BOARD OF DIRECTORS. an increase of 79% as compared to Rs. 13. 221 crores per year-end. rationalization of product pricing and Rupee appreciation. Even more encouraging was the order booking of Rs. with an increase of 102% over the previous year in Profit before Financial Items and Depreciation (EBITDA) to Rs. FINANCE 10. 155 crores which included a one-time equity dividend of Rs.13 per share.82% achieved in the previous year. rose to 9. The entire marketing team had devised a successful strategy for achieving these creditable results. mainly contributed by Electro-mechanical Projects and Unitary Products Business.2400 crores per end 31st March. Rupee appreciation against US Dollar and higher interest rates impacted the capital investments in Textiles and Auto/Auto ancillary sectors which adversely affected the Textile Machinery and Machine Tool businesses. performed well. The growth in PBT of 2007-08 in thus 100%. 2008 was Rs.4 crores on tax refund. However. in Forklift market attracted a number of international players in the high-end and low-end sectors resulting in increased competition and an impact on the profitability of this business. cash and bank balances also stood at a comfortable level of Rs. The closure of Hyderabad facility. In view of the comfortable liquidity position. 140 crores for the year 2006-07. 5. an increase of 83%. The Directors recommend a dividend of 135% for the year 2007-08 (2006-07 : 100%).188 crores represent balances held overseas against specific projects which are not available for other purposes. 2007. in the previous year. 6. continued DIVIDEND 3. commencement of a factory for Commercial Coolers in the Excise free zone in Pantnagar. the net working capital has actually dropped from Rs.2%. 4 . There has been a significant improvement in the profitability of the Company during the year. Improved IT systems have helped control the working capital significantly. while increasing the market share to 16%. a subsidiary company.1 face value against Rs. The Company has no exposure to derivatives. The PBT for 2006-07 was Rs.12 crores from Simto Investment Company Limited. the Company was not impacted by the volatility of interest rates in the economy and tightening of liquidity. 3086 crores.7% in the previous year. The Company achieved an operating EPS of Rs. Electromechanical Projects Business. the Company’s net foreign currency exposure was minimal and was therefore not much impacted by the fluctuations in the exchange rates. OPERATIONS 4. 84 crores which indicates prudent resource management across the businesses. the PBT of 2006-07 works out to Rs. 7. Substantial growth in the Materials Handling Business. 278 crores. Most heartening was the performance of Unitary 9. The Profit before Exceptional items and Taxation (PBT) for the year 2007-08 stood at Rs. The Company’s liquidity position remained comfortable during the year. 12. Investments in Mutual Funds stood at Rs. However. 3.58% from 1.74 per share of Re. and in particular. 11. 283 crores against Rs. If these items are excluded. both in the international and domestic markets and contributed to much higher turnover and profitability. 4300 crores for this segment. The Engineering businesses witnessed slow down during the year under review. The turnover of the Company has increased by 26% over the previous year to Rs. arising from the large profit it earned from sale of one of its investments and interest income of Rs. This augurs well for the future. 86 crores. all combined to give a substantial jump in EBIT (Earnings before interest and tax) margins of this business to 6. excluding cash and bank balances. 8. EBITDA margins which were at 5. 5. The amounts lying with Non-scheduled banks aggregating Rs. In addition.

was carried out successfully in the premises of a Group Company in Mumbai. serving numerous identified causes by donating their time and talents.REPORT OF THE BOARD OF DIRECTORS. An appreciation letter was received from the Government of Assam. There has been good progress in TBEM deployment. an orphanage for girls. Our Lady’s Home for Boys and Bombay Environmental Action Group. The feedback from these assessments played a vital role in providing useful inputs to the Business Units on areas of improvement. The Strategic Planning Process and Balanced Scorecard (BSC) mechanisms proved their value in formulating strategic objectives and goals and ensuring alignment across all the business units of the Company. Soft skills training was introduced in personality development. 17. 22. 20. Voltas spearheaded the training of key volunteers for Tata Council for Community Initiatives (TCCI). as indicated by the outcome of the internal/external assessments as a part of the TBEM assessment process. with state-of-the-art hardware to cater to the increased number of SAP users. Hosting of a new Data Centre. Mumbai Region. ensuring good results in the SSC examinations. Going forward. For the Akanksha mentoring programme. The Company’s business excellence journey continues satisfactorily with key focus on total employee involvement. SAP/ HR & Payroll. now in its 7th year. This will be of value in yielding better uptime and processing speed for the ever-increasing demands of businesses. GLOBAL COMPACT 23. with focus on the upliftment of tribal women. were given special coaching classes in mathematics. Voltas continued its efforts in cultivating 1. which was highly appreciated by the parents. New IT projects of strategic importance were implemented during the year under review. in which certain Business Units of the Company participated. Two new projects were taken up. smart thinking and customer care.5 acres of land to grow vegetables towards self-sufficiency at home. 15. 21. the Company proposes to undertake comprehensive process improvements as well as several other initiatives which include Six Sigma. continued to reach out to the underprivileged by way of educational and medical relief. Cancer Patients Aid Association. VOW. Leslie Sawhny Endowment. several consultative meetings were held with a view to improving the mentoring process and outcomes. continued TATA BUSINESS EXCELLENCE MODEL (TBEM) 14. IT INITIATIVES 16. COMMUNITY DEVELOPMENT AND ENVIRONMENTAL PROTECTION 19. The Compact lays down ten key 5 . the 12th batch of successful students graduated. Yusuf Meherally Centre. project systems for Electro-mechanical and Refrigeration Business and BSC for Corporate. innovation and knowledge management. There was a significant degree of enhancement in volunteering activity among Voltas employees. The children of Our Lady’s Home. In line with this. A Leadership Programme was conducted for the mentally and physically challenged children of the ANZA Special School. exclusively run by lady employees and the wives of male employees. the Brihaspati Academy at Pantnagar and vocational training at Regina Pacis in Mumbai. The Voltas Organisation of Women (VOW). including the TCCI. There will also be emphasis on generating a more robust process for the employee engagement across the organization. which Voltas partners with Joseph Cardijn Technical School in Mumbai to impart hands-on technical education to the underprivileged and those not academically inclined. At Ma Niketan. The Company also extended financial support in the form of donations and contributions to institutions. The Company had earlier signed the Global Compact with United Nations. Voltas also conducted a special batch in 2007 for the youth of Assam in which 10 students completed the course successfully and were awarded certificates. These will be operationalized during the current year. an orphanage for boys. with an improvement in Service Level Agreement (SLA) parameters. Business Intelligence for service operations of Textile Machinery Business. The Tata Business Excellence Model (TBEM) provides a platform on which the Company continued to strengthen its endeavours towards sustainable improvement in business excellence. In its Core Competency Project. The Company has an adequate number of trained internal assessors to carry out the assessment process effectively. 18. The strategic outsourcing of the IT function to a specialized consultant has yielded good results in operational areas. These include CRM for Unitary Products Business. several new initiatives such as 5S and Kaizen have been rolled out.

the Company would be able to leverage its market reputation to gain a reasonable share of these opportunities in the coming years. a copy of the Balance Sheet.600 million. As required by Section 217(2A) of the Companies Act. Fedders have agreed to divest and offered their entire shareholding in UCPL to Voltas Limited for a consideration upto Rs. Saudi Ensas Company for Engineering Services WLL (Saudi Ensas). Kingdom of Saudi Arabia (KSA). Consolidated Financial Statements presented by the Company include the financial information of its subsidiary companies. Auditors’ Report and other documents of the aforesaid subsidiary companies for the year ended 31st March. based on an application made. Directors’ Report. the Company has. the Company embarked upon a new initiative to further reinforce its commitment to “improving the quality of life of communities we serve”. a statement of information relating to employees has been given by way of an Annexure to this Report. In terms of approval granted by the Central Government under Section 212(8) of the Companies Act. a joint venture company between Voltas and Fedders is engaged in the business of manufacturing air conditioners and has its plants at Dadra and Pantnagar in Uttarakhand. APPOINTMENT OF COST AUDITOR 26. CORPORATE SUSTAINABILITY REPORT 24. Labour Standards and Environment. While the Company was already working towards sustainability by instituting systems for balancing the needs of all stakeholders as enshrined in the Tata Business Excellence Model. (VANV). 1956. 2008 (31st December. As part of rehabilitation/ financial restructuring. 28. Workshops were conducted to enhance the awareness regarding Global Compact among the employees. 2009 in respect of refrigerator products manufactured by the Company. 29. As per the directions given by the Central Government. The Company along with its subsidiary holds 49% of the capital and the balance 51% is held by the local partner. subject to requisite approvals/clearances in that behalf. UCPL would cease to be a joint venture company and become a wholly owned subsidiary of the Company. KSA provides good opportunity to the Company’s international Electro-mechanical business and with full ownership of Saudi Enas. Metrovol and VOEBV had reported higher turnover/ income as compared to the previous year and Metrovol. Profit and Loss Account. VIL Overseas Enterprises B. SUBSIDIARIES AND JOINT VENTURES 27. In view of substantial volume growth in Unitary Products business and the cost increases in imported products. 1975. (VOEBV). 2764. the local partner has agreed to transfer its entire 51% shareholding in Saudi Ensas to Voltas for ‘Nil’ consideration. received the Government’s approval for re-appointment of M/s. 6 . The Company has extended the framework of Sustainability Report to all its Divisions and Establishments. However. Upon completion of the legal process. a firm of Cost Accountants as the Cost Auditors of the Company for the year ending 31st March. by adopting the GRI framework for Corporate Sustainability Reporting. Pursuant to the Accounting Standard . the Annual Accounts of these subsidiary companies are open for inspection by any member/investor and the Company will make available these documents/details upon request by any member of the Company or its subsidiaries interested in obtaining the same. 750 lakhs (including refund of share application money).20 lakhs is held in equal proportion of Rs. as amended. VOEBV and VANV (foreign subsidiaries) have also paid/ declared dividends. UCPL is expected to be a significant source of procurement for the Company. Upon transfer of shares. Saudi Ensas would cease to be a joint venture company and become a wholly owned subsidiary of the Company. the GRI framework brings in a sharper focus on the implications of the emergent global debate on sustainable development for Voltas’ businesses.V. Weathermaker Limited (WML). by Voltas and Fedders. Simto Investment Company Limited (Simto) and Auto Aircon (India) Limited. Saudi Ensas is engaged in the execution and operations/maintenance of electro-mechanical installations in KSA and has for the past few years incurred losses and its liabilities are in excess of its assets. 30. Universal Comfort Products Private Limited (UCPL). continued principles based on universally agreed and internationally applicable values and goals in the areas of Human Rights. The existing paid-up capital of UCPL of Rs. In the year under review. Voice Antilles N. 1956 read with the Companies (Particulars of Employees) Rules.V. STATEMENT OF EMPLOYEES’ PARTICULARS 25. The transfer of shares is subject to statutory approvals and legal process in KSA and India. 1382. 2007 in case of WML).10 lakhs each. have not been attached to the Balance Sheet of the Company. namely Metrovol FZE. a joint venture company incorporated in Jeddah.21 issued by the Institute of Chartered Accountants of India. Sagar & Associates. has a paid-up capital of SR 2.VOLTAS Annual Report 2007-2008 REPORT OF THE BOARD OF DIRECTORS.

1956 and the Company’s Articles of Association. 1956. A declaration signed by the Managing Director in regard to compliance with the Code of Conduct by the Board Members and Senior Management personnel forms part of the Annual Report. furnished a certificate regarding their eligibility for re-appointment. in the selection of the accounting policies. have been dealt with in the preceding paragraphs of the Report. The Notes forming part of the Accounts are selfexplanatory or to the extent necessary. Corporate Governance Report and Auditors’ Certificate regarding compliance of conditions of Corporate Governance 7 . In accordance with the provisions of the Companies Act. 1956. The approval of the members is also sought for the appointment of Branch Auditors of the Company in consultation with the Company’s Auditors. DIRECTORS’ RESPONSIBILITY STATEMENT 32. 2008 are made a part of the Annual Report. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO 31. Information pursuant to Section 217(1)(e) of the Companies Act. On behalf of the Board of Directors ISHAAT HUSSAIN Chairman Mumbai. they have taken proper and sufficient care to the best of their knowledge and ability. 15th May. the attention of the members is invited to Item No.6 of the Notice of the Annual General Meeting and the relevant Explanatory Statement. the present Auditors of the Company have. N. pursuant to Section 224(1B) of the Companies Act. Ravi Kant and Mr. Deloitte Haskins & Sells. they have. the applicable accounting standards have been followed and that there are no material departures. the same has been given in the notes forming part of the accounts for the year ended 31st March. 1956. Nasser Munjee. consulted the Statutory Auditors and have applied their recommendations 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 of the Company for that period. As regards the information in respect of foreign exchange earnings and outgo. offer themselves for re-election. Mr. Khurody retire by rotation and being eligible. At the Annual General Meeting. GENERAL 36. for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges. Management Discussion and Analysis. (b) (c) (d) CORPORATE GOVERNANCE 33. Mr. D. relating to conservation of energy and technology absorption is given by way of an Annexure to this Report. continued CONSERVATION OF ENERGY. 1988. members will be required to appoint Auditors for the current year. confirm that: (a) in the preparation of the annual accounts. 1956. DIRECTORATE 34. they have prepared the annual accounts on a going concern basis. based on the representations received from the Operating Management. In this connection.REPORT OF THE BOARD OF DIRECTORS. the Directors. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. Messrs. AUDITORS 35. read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. 2008. Pursuant to Section 217(2AA) of the Companies Act.

R. DESIGNATION. 629032. M. PROJECT DIRECTOR.D. 51.(MECH. 61. 59. CO..E. PROJECT MANAGER ELECTRICAL. (6 YEARS) BALASUBRAMANIUM V. 2533272. 26/3/2002. & MFG. (13 YEARS) 8 . BAHRAIN BRANCH. 17. UNITED ARAB EMIRATES. B.. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES. AMTREX HITACHI. M.VOLTAS Annual Report 2007-2008 ANNEXURE TO THE DIRECTORS’ REPORT INFORMATION AS PER SECTION 217 (2A) (b) (ii). M....M. (14 YEARS) ALMEIDA DEEPAK*. 17/1/1974. PROJECT CO-ORDINATOR. 35.SC. 506190. PERIOD FOR WHICH POST HELD SECTION I . 1325227.EM&RBG.. 2008. 7/7/2001. PROJECT MANAGER-MARKETING. 15/7/1981. NATURE OF DUTIES. 55. NIL AHLUWALIA MADHU*. GENERAL MANAGER-OPERATIONS. (3 YEARS) ANBALAGAN ALAGURENGASAMY*. QATAR BRANCH. D.A. VP(IT).E. 42.. 2752859.. B. GENERAL WORKS MANAGER. MECH. (3 YEARS) CHAKRAVORTY CHANDRASHEKHAR*.(MECH. 2/7/2001.. 37. SAUDI OHER LTD. SR. AREA MANAGER . 23.. (MECH. VICE PRESIDENT & CIO (IT). M. 25.A.(MECH).. 1704720. 12. 36. ASST. B. 20/2/2008. NIL DANDEKAR SATISH. LTD. M.). 3320983.E.SC. LTD. GENERAL MANAGER-SPECIAL PROJECTS. ASSISTANT OFFICER . (1 YEAR) BHALERAO SUDHIR*. 1612450. B. (6 YEARS) BILGI SATISHCHANDRA. 6055208. CFO . DIP.C. IRO. 26. PROJECT DIRECTOR.E. B. CHIEF PROJECT MANAGER.. 12. (1 YEAR) C. SURESH KUMAR*. (1 YEAR) DESAI NIKHIL*. 3/1/2002.E. 5/10/1998. B. UNDERTAKING.. 291774. EXPERIENCE YEARS. 848181. 3194810. AVERY INDIA LTD. B. 13. (10 YEARS) CHAUHAN ANUPAM*. QATAR BRANCH. BUSINESS DEVELOPMENT MANAGER. KIRLOSKAR PNEUMATIC CO.E. BHARAT PETROLEUM CORPORATION LTD. (12 YEARS) CHHABRA JAGDISH*. ASSISTANT GENERAL MANAGERHR. 15/6/1995. (10 MONTHS) CENTRAL-(MHBD). 641988. 1820536. (1 YEAR) BHAGWAT ASHISH. 13. 4/10/2007. REGIONAL MANAGER- BHOLE RAHUL. 21/1/1976... REMUNERATION RECEIVED GROSS (Rs. 36. SENIOR GENERAL MANAGER-EM&RBG. 35. (1 YEAR) AMARNATH R. 650747. M. SC. ERECTION & SERVICE ENGR.P.).A. 2/11/1998.S. 1271695.. 31. (MECH. M. MERIND LTD. PROJECT MANAGER. NIL CHAUBE N. ARABIAN CONSTRUCTION COMPANY. SNEHAL A/C & R.. 51. 661521. (1 YEAR) CANALES DIONESIO C. MGR.). 61. A. (5 YEARS) BAKSHI PRADEEP.. B.). 6055208. 2630829.W. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH.ELECTRICAL. 35. (INTER). 1662058. 25.. SR. LTD.G. B.. 39. D. FICWA. 61. SR. GENERAL MANAGER. M. 46. 50.B. RAJENDRA KUMAR*. 1820563. NAME.TECH (MECH. TURNER INTERNATIONAL LLC.R. BIG COMML. 589653. ASST.) 3/7/2007. 3194810. 2427949. 6164786. ENGG. 7. LTD.(CIVIL). AGE. LTD.SC. DUBAI.E. 31.. SAUDI ENSAS CO. PROJECT ENGINEER. 48.COM. COMML. 17/3/1972. 1/8/1983.M. (1 YEAR) BEHAL TARUN. 19. 958733. 1632954. 52.(MECH. B. PROJECT MANAGER (HVAC).). 26. 600396. 3/2/2008. 56.A. UNITED ARAB EMIRATES. TECHNICAL TRAINER. I.) 6/5/1988. BATLIBOI LTD. 291774.E..E. B.E. 2882842. 1725769.). 3320983.*. PROJECT DIRECTOR. 695929. 223279.C. SALES ENGINEER. HIRANDANI SOFTWARES & SYSTEMS. 223279.) MBA.E. B. MANAGER OPERATIONS.A. P. 650747. D. MEP MANAGER. (3 YEARS) CHAKRABORTY PINAKI*. B. DATE OF COMMENCEMENT OF EMPLOYMENT. 24. COM. CHIEF ACCOUNTANT. GENERAL MANAGER... 50. QUALIFICATION. 6164786.. PVT. 50. B. SITE-IN-CHARGE. R.CUSTOMER CARE. 15/4/2006. 59. N. 10/2/1992. 45. ASSOCIATED CAPSULES PVT.. ASSISTANT MANAGER.. 1/3/2000. 29. 2664460..COM.. (7 YEARS) CH SUBBA RAO*. 966771. 23/11/2001.C. SENIOR MANAGER. M. 34. DY. SENIOR ENGINEER . 16.A.F&C. ELEC. PROJECT ENGINEER. SALES MANAGER.MANAGEMENT STAFF A. LAST EMPLOYMENT HELD. UNITED ARAB EMIRATES. 2882842. 592143.B.. MANAGER-F&C. M.LL.OPERATIONS. 3991162. DESIGNATION. 18... (1 YEAR) AMAR BAPU O. NET (Rs. P. BLUE STAR LTD. 507356. B.. B.. 16. 15/7/1983... THE MAFATLAL FINE SPG. 763238.M. MANAGER-F&C. QATAR BRANCH. 45.M. AL MULLA BROTHERS LLC.. VICE PRESIDENT-SALES & MARKETING. LTD. B. B. CHIEF MANAGER-COMMERCIAL. 2733995. INTERNATIONAL ELECTRON DEVICES. LAB. PROJECT ENGINEER. 2/5/1972.M. SECRETARY. 1278882. 2533272. (9 YEARS) ACHARYA RANATOSH*. 51.TECH (ELECT. QATAR BRANCH. 36.S. ELECTROLUX KELVINATOR LTD.E. B.*. LARSEN & TOUBRO LTD. PROJECT MANAGER-UNITED ARAB EMIRATES..... 670279. DIPLOMA IN O&M. TECH. 1/3/2008.. 37. THERMAX PVT.

MANAGER ELECTRICAL. TECHNOLOGIES.. 13/9/1985. 2548306. B. B. UNITED ARAB EMIRATES DHONDE M. 4258408. SENIOR GENERAL MANAGER-EM&RBG.E.C. BOSTON EDUCATION & SOFTWARE TECHNOLOGIES LTD. 49.. 3837038. E. 31. 216153. 61. 7. 15/5/2000. ASSISTANT SECURITY OFFICER. 6636270. 1/6/2001. ELEC. 25. SR. 39. B. 25. M. EXPERIENCE YEARS.. MD. TECHNO FIRE CONTROL LTD. (2 YEARS) GAJANAN DIXIT*. 33. 19. PROJECT MANAGER. 4841480. 3189579.C.F. HULL. M & E MANAGER. 19/6/1983.(ELEC. 18.E.G. 2008 (contd. (5 YEARS) GHANEKAR PRASHANT. (ELEC. ELEC. PROJECT 3581916. RDI PRINT & PUBLISHING LTD.. 3754129. MANAGER (HVAC).. 916205. 19/9/2007. GHAG S. PERIOD FOR WHICH POST HELD SECTION I .).. 60.M. 1/2/1978. 4304150. (10 YEARS) HIBBITT STANLEY. 52. REMUNERATION RECEIVED GROSS (Rs.COM. QUALIFICATION.G.A. 2856395. BAHRAIN BRANCH.E. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. 3765176. BLUE STAR LTD.INFORMATION AS PER SECTION 217 (2A) (b) (ii). 25. M. 30. B. 6/9/2004. 14/10/1991. EMIRATES TRADING AGENCY. 40. GM-HR. 7/2/2002.). (25 YEARS) GOPALAKRISHNAN RADHIKA*. 48. QATAR BRANCH. BOMBAY TEXTILE RESEARCH ASSOCIATION.M..M. B. VICE PRESIDENT (OPERATIONS) . NIL.ACCTS.. (1 YEAR) IQBAL MOHD FAIZAN. BLOW PLAST LTD. SHUN CHEONG ENGINEERING LTD. VICE PRESIDENT (HUMAN RESOURCE).). AGE. 6/3/2000. D. 7/5/1998. 933373. 2476829. 718425. HONG KONG BRANCH. FINANCIAL CONTROLLER. (1 YEAR) 1389412. PROJECT MANAGER. B..E. (5 YEARS) DHUME P. LAST EMPLOYMENT HELD.C. CHIEF PROJECT MANAGER. D. 1/11/1977. 4841480. MANAGER: ADVERTISING & PUBLIC RELATIONS. (8 MONTHS) GILLASPY JOHN... ENGG. 28. P. 12/5/2007. 37. (2 YEARS) DEY S. CENTRAL GAURAV MALIK*.SC. A.D. 48. EMAM DISTRIBUTORS CO.. 18.. B.. BUSINESS DEVELOPMENT MANAGER..) DESHMUKH VINOD. PROJECT MANAGER. USHA MARTIN INDUSTRIES LTD.). DESIGNATION.E. 745007.SC. LLC. (1 YEAR) GEHANI SANJAY. 40. 2365625. (1 YEAR) QATAR BRANCH.D. 5666483. B. 13/8/1990..). EMIRATES TRADING AGENCY. 46. 2563229. B. 3837038. B. 2563229.. 5662213.C. 2759733. GENERAL ELECTRIC COMPANY. 49. 8. A.. 40. 1551433. 3581916. PROJECT MANAGER-UNITED ARAB EMIRATES. BATLIBOI & PUROHIT. (1 YEAR) JOHRI SANJAY. B. FINANCIAL CONTROLLER. NIL GRACIAS XAVIER. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES. 3949971. 60. INTERNATIONAL TRACTOR CO OF INDIA LTD. 151719. PROJECT ENGINEER.. COM. EXECUTIVE VICE PRESIDENT & COO. 18. 1283083... 18. JUNIOR ENGINEER. 35. 4366310. SR.. E-MERCK (I) LTD. 5666483. 1110314. GENERAL MANAGER. BAHRAIN BRANCH. (ELEC. INFOTECH COMPUTERS INSTITUTION.. SENIOR MARKETING MANAGER.C. MECHANICAL CUM JUNIOR ELECTRICIAN.A. PROJECT MANAGER-MECHANICAL.. M. MARKETING EXECUTIVE.COM. EXECUTIVE VICE PRESIDENT & COO-(IOBG). PROJECT ENGINEER. UNITED ARAB EMIRATES. ASST MGR . OTIS INDIA LTD.L.EM&RBG. CONSTRUCTION MANAGER.N.M.. UNITED ARAB EMIRATES. 23..SC. 61.. 53. REGIONAL FINANCIAL CONTROLLER.B. 2/7/2002. 52. 17/5/1993. 42. UNITED ARAB EMIRATES.SC. 458533. N. 27. NIL HITACHI 9 . D. LTD. JUNIOR ENGINEER. B... 1748528.E..S. SENIOR MANAGER-F&C. 30. 2425497.A. M. UNITED ARAB EMIRATES.M. (6 YEARS) GARUDACHAR B.MANAGEMENT STAFF (Contd. 1/6/2000. 3949971. 1551433. 55. (7 YEARS) GANESAN V. M&CE & MHBD). PROJECT MANAGER-PLUMBING (6 YEARS) DHARWATKAR SACHIN*.*.. NATURE OF DUTIES. 4258408. DIP. S.. A. MIDDLE EAST REGION.A. NET (Rs. (5 YEARS) GOPIKRISHNA M. (2 YEARS) DUGGAPPA AMIN*. 15. (1 YEAR) D’SOUZA RALPH. 4366596. 1567769. ITI. 30. 1283083. 6845310. B. 4/6/2006.. 62. (2 YEARS) GOLE ANIL.). 41. DATE OF COMMENCEMENT OF EMPLOYMENT. 34.(ELEC.. B. 61.. (UPBG. 59.). 5662213. (1 YEAR) GHOSH RANJANKUMAR*. (2 YEARS) FU SEE KWONG FRANK. 18/9/2007. 561675. 45. 11/2/1975. 1/2/1988.P. P. BIRSE STADIA. DESIGNATION. MANAGER ACCOUNTS. S. 34. 46. 2759733. 13. D. GENERAL MANAGER.SC. FINANCIAL ADVISOR. ENGG. 33.. (ELEC. B. TECHNICAL & ADMINISTRATIVE PROFESSIONAL II. SECTIONAL SUPERVISOR... 2548306.A..M.E. DY.E. ENGG.S.) NAME. PROJECT DIRECTOR. UNITED ARAB EMIRATES.M. MECH. GENERAL MANAGER-CCD..SC. GARWARE POLYSTERS. 19/9/2001. DIRECTOR. 4426745. B.. F. 5/4/2003... (7 YEARS) DHAWAN MUKESH*.I. 3946402.E. DESIGN ENGINEER.A. 14/7/1992. SENIOR ASSISTANT. PROCUREMENT. M & E CONSTRUCTION MANAGER. 36. LARSEN & TOUBRO LTD.31/7/1978. B. QATAR BRANCH. CHARTERED ACCOUNTANTS. UNITED ARAB EMIRATES. TRAINEE ENGINEER. YATEEM AIRCONDITIONING CO.. PROJECT MANAGER...(HONS).SC ENGG.

K. S. B.. 16.E. PROJECT MANAGER. UNITED ARAB EMIRATES.C. 36. QUALIFICATION. CHARTERED ACCOUNTANTS. 37. B. (I) LTD.. S... 2725437.B. ACCOUNTS & ADMIN. UNITED ARAB EMIRATES. ENGG.. PAIRS METAL CORPORATION PVT. 52. B. (7 YEARS) 10 . M. 3908298. C. D.. PROJECT MANAGER.M. 22/9/1966. B. 4/10/2004. 33.L. B..E.B.K. 23/9/2002. KIRLOSKAR PNEUMATIC CO.K. (10 YEARS) KULKARNI SUBHASH*.A.. LAST EMPLOYMENT HELD. 32.D.A. DALAL DESAI & KUMANA. STENO TYPIST. 41. 2008 (contd.E. 255581. NIL KANCHAN SANYAL. PROJECTS MANAGER. 28. B. N.. (MECH.M. 21/11/2006. PERIOD FOR WHICH POST HELD SECTION I . P. (GEN). 2515662. 20. 43. EXECUTIVE VICE PRESIDENT & COO.VOLTAS Annual Report 2007-2008 INFORMATION AS PER SECTION 217 (2A) (b) (ii).. UNITED ARAB EMIRATES.. K. REMUNERATION RECEIVED GROSS (Rs..G. B. TRAINEE ENGINEER. 18/7/1988. 38..M. (7 YEARS) MAHAJAN R. (10 YEARS) KROWIDI RAJA SEKHAR*..). QATAR BRANCH. EMIRATES TRADING AGENCY. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH.* 61. MIDMAC CONTRACTING.COM. 38.. B. 13/5/2007. 52. 2736730. 1/7/1976. 25. 17/1/2008. SR. 40.. STRIDES ARCOLAB LTD. LTD.TECH. A. B. 300637. VP & CO. AGE. 17. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES. UNIVERSAL VOLTAS L. B. B.L. 2413393. 2/4/2003. B.COM.. UNITED ARAB KALRA AMARPAL*.. 2113126.W.COM. 2508891. 19/11/1990. 45. ELGI EQUIPMENTS LTD. 21/9/2005. 1188984. (1 YEAR) KRISHNAN P.SC. A. (2 YEARS) MALHOTRA V. DY. TAYLOR WOODROW. 1540506.). 7/12/1979. 403145. 8/6/1979.. SALES CO-ORDINATING OFFICER.C. 25/1/1992. SR. P. DRAKE & SKULL.). ALL INDIA COMMERCIAL MANAGER MTD.. PROJECT MANAGER-MECHANICAL. P. 58.E. 2570049. (2 YEARS) ARAB EMIRATES. ASSISTANT OFFICER-ACCOUNTS. (4 YEARS) KHWAJA SAEED. 34. 38. 8/11/1971. 17/4/1995. 59. KESKAR A. (6 YEARS) EMIRATES. B. (4 YEARS) 2736730. OPERATIONS INCHARGE. NIL KHANDEKAR MANISH*. ALL INDIA COMMERCIAL MANAGER.(CHEM..(AGRICULTURAL ENGG. 45. ELECT. 3313222. SENIOR ASSISTANT. 2036337. QATAR BRANCH. 24/12/1975. 40. ELECTRICAL CO-ORDINATOR. CHIEF MANAGER . COM. TATA SERVICES LIMITED.). 1889273. 3545737... 29. 27. PADMASHALI*. B. CIVIL ENGG. 23.SC.D.(ELEC. NIL LAWRENCE ANDREW*.E.). 48. 29. PROJECT ENGINEER. (ELEC. PROJECT MANAGER. 2560395. EMIRATES VOLTAS LLC. (2 YEARS) KHURANA SURENDRA KUMAR. N.C. (14 YEARS) KHETRAPAL SANJAY*. 340049.COM.. (2 YEARS) 2599190. 61. L. THIRU AROORAN SUGARS LTD. LARI KHALID.S. 3329475.E.E.E. 41.E. 51. B. MAHINDRA UGINE STEEL COMPANY LTD. OFFICER. (6 YEARS) SECRETARY. 2465607. CHASE CONTRACTING. UNITED ARAB EMIRATES.E. 3908298. 2756979. B. 1880538.... (8 YEARS) KARANTH P. EXPERIENCE YEARS.E. 3017002. (2 1/2 YEARS) B.).M.S. BID & DESIGN MANAGER.M. 646783. UTILITY ENGG. 5/6/1970. B.. 58. SC.. PROJECT ENGINEER. B. 42. SHIFT ELECTRICAL ENGINEER. 39.*.A. 59.). 8. 5275571. 14. B.) JOSE RAVELO*. 236855. 23. 44.PLANT ENGG. B. NATURE OF DUTIES. P. COMMERCIAL MANAGER. 2465607. 55. UNITED ARAB EMIRATES. DESIGNATION. DESIGNATION. MANAGER . PROJECT ENGINEER. TYCO. L. 2413393. 2113126. 6/4/1979.COM.L. BLUE STAR LTD.COM. F..I.. UNITED ARAB EMIRATES.. 14/6/2007. ASSISTANT GENERAL MANAGER . PROJECT MANAGER. GENERAL MANAGER. 15. MECH. PROJECT ENGINEER. (8 YEARS) KUMAR AMOD. 1207435.FINANCE. 37. MANAGER-BUSINESS DEVELOPMENT & EXCELLENCE. (1 YEAR) KANITKAR U. BEST & CROMPTON.E.) NAME. 3313222. TRAINEE ENGINEER. QUANTITY SURVEYOR. I. QUANTITY SURVEYOR. 1/8/2006. D.. DATE OF COMMENCEMENT OF EMPLOYMENT.MANAGEMENT STAFF (Contd. BAHRAIN BRANCH. 2066085.M..(EM&RBG). GANESH*. 3329475. PROCUREMENT MANAGER.).S. (1 YEAR) KARKARE PRASHANT. VICE PRESIDENT-BUSINESS IMPROVEMENT. D. BHARAT ALUMINIUM COMPANY. HICO PRODUCTS LTD.SC.. SECY.. 21. B. 21/11/1996.SOURCING. 264205. 59. 861411. VICE PRESIDENT (PDC & WMBD).. PROJECT MANAGER. (10 YEARS) KARNIK ASHOK*.. 51. 23.E. 357638. (ELECT. EXECUTIVE. 702708.. UNITED JOSHI A. 14/4/1998. (MECH. NIL M. 836792.C. 2599190. GUILFORD TECHNICAL COURSE. GENERAL MANAGER-TAXATION & COMPANY KHANNA DINESH*. 2036337. NET (Rs.. TECHNICIAN.. D.C..C. 3/2/2001.. LOGISTICS INCHARGE. A. 2560395. PROJECT ENGINEER. 1653757. 61. PROJECT MANAGER. 287427. SR. 770100..M. 946465. CONSTRUCTION MANAGER. (INTER). PROJECT MANAGER-PLUMBING. EXECUTIVE ASSISTANT.. 1225881.G. P. 35. LTD.).TECH. 16. 1/10/2001. (2 YEARS) KANNAN C..

SC. 26/3/2002.A. 1288400.. 11. 1/8/1988.E. NET (Rs. 43.. MIR SHAUKAT ALI. ELDE ELECTRICAL AGENCIES PVT. 1459310. ENGG.E. 38. B. SAMCOR GLASS LTD. 9516302. NIL PRABHUAJGAONKAR B.. 43. 39.(TECH). 4/7/1994.E. HEAD-CONTRACTS ADMINISTRATION. 942800. 44. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH.. PROJECT ENGINEER.M... B. 1806865. 5. MANAGER HUMAN RESOURCES-QATAR BRANCH.P. 39. CONSTRUCTION MANAGER. MANAGER . 19.). 40. 782496. 2008 (contd. LTD.. (3 YEARS) PARAB AJIT*. M. 369879. L. MIYAJIWALA M. HR-HEAD. 14/9/2005.)..). LL. UNION BANK OF INDIA. 912782. 14.TEXT. NATURE OF DUTIES.(ELECT. 44.T.VENDOR DEVELOPMENT. 18.B.E. B. REFRIGERATION PRODUCTS. 8549978. COM.S.T. B... D. DIVISIONAL MANAGER MATERIAL. OFFICE INCHARGE.E. 10/2/1997.(EL). CONSULTING ENGINEER(M&E). M... REGIONAL MANAGER. 2814220. 6/8/2007. 45. 55. M.M. TATA KORF ENGG. CONSULTANT (4 YEARS) PALIT SUMAN*.COM. 369879.E.M. CHIEF PROJECT MANAGER.M. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES. B. CARRIER AIRCON LTD. 3/9/2001. PERIOD FOR WHICH POST HELD SECTION I . (3 YEARS) NAGPAL RAJESH*. DY.P. NIL DEVELOPMENT. SR.SC.M. 3/3/1980.B. MISHRA ASIS*. 53.E. 46. D.) NAME. 3258205. SR. 3515818. 249500. M.. TURNER STEINER INTERNATIONAL. 548169. (3 YEARS) MANDAL ANUP KUMAR*. 3515818.(MECH. NIL MULLATH VIJAYAKUMAR.). 28.PROJECTS. SC.. BULL POWER SYSTEM LTD. NIL PATIL INDRANIL*. D. B. ENGINEERING MANAGER. D. B. 41. SODEXHO PASS SERVICES INDIA PVT. (1 YEAR) NOORANI NAUSHAD. MANAGER-COMM.A. ACCOUNTS ASSISTANT. ASSISTANT WORKS MANAGER. 17.S. QATAR BRANCH. (2 YEARS) PAHADE PRASANNA. B. HEAD-STRATEGIC SOURCING.G. 27. QUALIFICATION. B. B.A.. (8 YEARS) MATHEW JACOB E. 50.P.) MANAY L. M. 41. ASST. 12.TECH. 29/8/2007. 22. 11/1/1989. MANAGER . SALES ENGINEER. 1.E.E. 29.VENDOR B. 539323.INFORMATION AS PER SECTION 217 (2A) (b) (ii). 7/10/1993. B. 681502. TATA STRATEGIC MANAGEMENT GROUP.. 50. 57. ERECTION ENGINEER. (4 YEARS) 536144. 5221669. 6/9/1989. 3258205. B.E.... SENIOR SALES MANAGER. 33. (3 YEARS) PARAB PRADEEP*. SENSAIRE SERVICES. 13/5/1983. 22. 4027936. 9516302.B.M.A. 37.. 488480. COLONEL. MUJUMDAR PRAKASH*. 29. CFO-IOBG. ASSISTANT GENERAL MANAGER-ELECTRICAL. DESIGNATION. SR. 786367. (2 YEARS) MAZUMDAR RANDHIR*. LTD... 497933. B. 2/5/1980. 22/11/1993. (3 YEARS) PRADHAN AMOL*. LTD. 502355.C. SR. AMIE. 883475.G. GENERAL MANAGER-CORPORATE PLANNING. 563086.C.. 22.MANAGEMENT STAFF (Contd. (MECH. (1 YEAR) 11 . 4310469.E.D. D.M.). (10 YEARS) PANT C. LAST EMPLOYMENT HELD... D. CHIEF PROJECT MANAGER. 1/2/1984. ASSISTANT MANAGER . 12. 10/3/2004. PRODUCTION ENGINEER. (1 1/2 YEARS) PATES JAMES*. M. GENERAL MANAGER-CORPORATE HR. 1719650. 21. PROJECT MANAGER-UNITED ARAB EMIRATES.E. G. PERSONNEL OFFICER. BILLIMORIA & CO.G. SIEMENS LTD. 2522700. GENERAL MANAGER-LEARNING & DEVELOPMENT. P. NIL.. (3 YEARS) B. 26. 1/11/1994. A. 44.. A. LL. 7/2/2008. AGE.D. 4/11/1988. ASSISTANT WORKS MANAGER. 10. B. DESIGNATION. ARMATIC ENGG. 226600. REMUNERATION RECEIVED GROSS (Rs. 2721414.. B.. DARA SORABJI. MANAGER ACCOUNTS-QATAR BRANCH. LL. SERVICES LTD. (3 YEARS) MURTHY D.SC. COM. 22. ASSISTANT MANAGER-SALES. 2912191.. MSWL. SALES ENGINEER. QATAR BRANCH. 7/1/1986. 25. EXPERIENCE YEARS. EXECUTIVE VICE PRESIDENT (FINANCE). S.S.R. 773926. 2522700. MANAGER-HRD.. SITE ENGINEER.. PROJECT MANAGER-UNITED ARAB EMIRATES. 1/6/2004. 52. PREMIER AUTOMOBILES LTD. 677028.D.TECH. MANJREKAR & CO. 201762. GABRIEL INDIA LTD... 19. DATE OF COMMENCEMENT OF EMPLOYMENT. 2637490. (MECH. 223762. (22 YEARS) MENON SURENDRANATH E. 659294.. 1/4/2002. 2448977. SINGAPORE BRANCH.. B. REGIONAL MANAGER. PANTNAGAR.C. REGIONAL DIRECTOR-MIDDLE EAST REGION..S. 4/7/1995.. ACCOUNTS ASSISTANT. 14. 8549978. 34... WEST ZONE. (CIVIL)... INDIAN ARMED FORCES. K. B. 40. 1788815. B. E (ELECT). 641628. M... PGDM. PROJECT ENGINEER.B. 7/10/2002. 849598.H.E. (12 YEARS) NUTI VENKATA SRIDHAR*. (12 YEARS) PATIL S. NIL NAWATHE AMOGH*.E. 56.. 734156. 42. 2419773.. B. B.). 36. CELETRONICS INDIA P. 43. N. 2419773.

34. (2 YEARS) SEN DIPAK*.A. NIL SHAJI RASKIN*.C.. 44. 899961.S. 41.. 49. 1666139. NIL SAMPATH D. (1 YEAR) SHERUGAR KESHAV. 1/9/1995.. BHARAT HEAVY ELECTRICALS LTD.(ENVIRON). 6/8/2006. DATE OF COMMENCEMENT OF EMPLOYMENT.).)..) NAME.. 802898. 3/8/1993. LAST EMPLOYMENT HELD. 1032200. 45. MARKETING MANAGER-ENGG PRODUCTS.. NET (Rs. PROJECT MANAGER. D. 7787239. B. LL..E. ARISTO PHARMACEUTICALS LTD. GENERAL MANAGER.. 955710. 3626486. LTD.. GENERAL MANAGER. (MECH. ONGC. 33. 47. PROJECT MANAGER. MANAGER. 4427331..G.C. B.) PRADHAN VIKAS*... VANDERWELL ENGINEER MASSACHUSSETS. PROJECT MANAGER..C. 2918295. EQUIPMENT CO. (4 YEARS) SHARAN VIKAS*. BHD.(ELECT. B..). (25 YEARS) SHAJU V. 35. 1/7/1991. 12. 7787239. 16. 10/4/2002. PERIOD FOR WHICH POST HELD SECTION I . MICE. 942162.. B. 849002. 60. PGDM. 38. 45. B. TELCO CONST. 22. B.COM. 1629150. B.C.B. LTD. 644307.. 4/10/2006. B.F & C. 9/4/2001. 37. SENIOR PRODUCT MANAGER.. 1591455. 15/7/1998. 1/11/1996. (2 YEARS) RAO KUTUMBBA*.. A. QATAR BRANCH. 201066. PGDBM. 14..I. I. C.. MANAGEMENT TRAINEE. WIRTGEN INDIA PVT. ACCOUNTS OFFICER. J. 59. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. (5 YEARS) ROY DIPAK. 34.. 2008 (contd.. SINGAPORE. 15. 2433914. UNITED ARAB EMIRATES.). NATIONAL TEXTILE CORPORATION... UNITED ARAB EMIRATES.COM. B. PHOENIX OVERSEAS LTD.M&CE & MHBD. 1/2/1996. P.(MECH). SR.A... LTD. PHIL. 13. S. 38. M.E. (1 YEAR) SINGH LAKHBINDER*. 2535354.VOLTAS Annual Report 2007-2008 INFORMATION AS PER SECTION 217 (2A) (b) (ii). DEPUTY GENERAL MANAGER-WEST.BRAUN MEDIAL (I) PVT.E. (4 YEARS) SHARMA SHAMBHU PRASAD*.C. K. AGE. EMIRATES TRADING AGENCY. DESIGNATION. 7. 1/2/2001. 1521967. DIP. 2715739. 7/6/1978. BRANCH ACCOUNTANT. REMUNERATION RECEIVED GROSS (Rs. SALES EXECUTIVE. REGIONAL SALES MANAGER. 634173. BAHRAIN BRANCH.C... B. 10/3/2007. HONG KONG BRANCH. REGIONAL SALES MANAGER. SENIOR ENGINEER. 24.TECH.COM.(MECH. MANAGER . 348663.E.E. 3809958. 13. 10/8/1983. 28/7/1983. B.). 38.. 24/6/1974. HUMAN RESOURCES. CFO-CENTRAL F&C SERVICES. 27/7/1978.. CHOUGULE ENGINEERS LTD. (10 YEARS) SHARMA GOPAL. LTD. (6 YEARS) PRITMANI S. CHIEF PROJECT MANAGER. B. 53.W. LTD.M. TATA CONSULTING ENGINEERS. (4 YEARS) SHAHANE MILIND.INTERNATIONAL BUSINESS. NIL 12 . B. M.. (11 YEARS) SANYAL ASHIM.S. M. MECH. 2549028..B. D. ENGINEER. 48.. PARUL CHEMICALS LTD. 4427331. PLANNING & QA/QC MANAGER. BUMI JAYA CORPN.). 16. RESIDENT ENGINEER. UNITED ARAB EMIRATES. PRODUCT MANAGER-IMPORTS. 25. CHAMPION COMMERCIAL CO. 28. OFFICER-PARTS.. SR. (3 YEARS) SHARMA HARISH.*.G. EXPERIENCE YEARS.F&C. ERECTION & COMMISSIONING-POWER.B. 24. 61. 3476252. (ELEC. MANAGER ACCOUNTS. (10 YEARS) PRASAD SITARAM*. 15/7/2002.. 8893620.E. VICE PRESIDENT .. 3718047. 1893942.C. 36. 201066.S. B. 60. 50.. 305026. GENERAL MANAGER-FAR EAST & SOUTH EAST ASIA REGION.D.M. 42. MAUNSELL CONSULTANTS (ASIA) LTD. P.. (2 YEARS) B.E.E.A. RAMACHANDRAN K.C. 792901. 1/3/2002. 944218. SR.HR. 2715739.A. 5292363. B. CARRIER AIRCON LTD. 24/5/2002. 272228. (14 YEARS) SHARMA SUDHIR. ASSISTANT OFFICER. B. STENOGRAPHER. B. SHAIKH SUROOR OFFICE. 1165661. (MECH.TECH. GENERAL MANAGER (CHEMICALS). 311176. ADVANI & COMPANY.MSW. 9/2/1984.E.MANAGEMENT STAFF (Contd. 32.M. VICE PRESIDENT-MARKETING. MARKETING MANAGER. MECHANICAL ENGINEER. NGRI.. DIRECTOR-PROJECTS. MANAGER BUSINESS EXCELLENCE. MERCHANDISING. 1017870. PROJECT ENGINEER. DIVISIONAL MANAGER. 39.). 823125.).A.SC. 27/10/1999. (1 YEAR) SATAM SANTOSH*.. 2699058. 54. MANAGER ..(MECH.A. A.E. B. 14.TECH. 18. PROJECT ENGINEER. NATURE OF DUTIES. DY. B. B. DESIGNATION. IN COMPUTER. SDN.GENERAL MANAGER. 695931. DELHI. 47. B. B..E. NIL SHAH UTSAV. 19. (11 YEARS) RANE SANDEEP*.. M. C. 42. 53.. 2327794. (3 YEARS) SHARAN S. (10 YEARS) SHIVANIGI UMESH*.E. 56. 2549028.ENGG.TECH.2804504.SC. 39.M. 923475.E. BATLIBOI ENGINEERS LTD. 1/8/2002. 5668133. 59. 31/1/2003. 1265030. (3 YEARS) SIDHWANI S. SALES ENGINEER. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES. SINGAPORE BRANCH. 39.A. SENIOR COMMERCIAL EXECUTIVE. GENERAL MANAGER-OPERATIONS. 3/4/1974.(CIVIL). UNITED ARAB EMIRATES. QUALIFICATION.D. B. I. 3809958. GENERAL MANAGER .. 27. 9311157.

4463048. B. RADHAKRISHNAN CHARTERED ACCOUNTANT. 39. (2 YEARS) VELLANIKARAN S*. THOMAS SHIBU*. 876732. H. 2671070. 2652585.T. (3 YEARS ) 13 . 2/11/1992.SC. 16. 25.. LLC.. OPERATIONS MANAGER-NORTH ZONE. AGE. 6218724. (PROD.C. 918505. 38.. 716171. EXECUTIVE VICE PRESIDENT & COO (TMD & MTD). 25. P. (1 YEAR) AIR 224844. 1. B. PARSONS INTL. 19.E.E.. B. CHIEF INTERNAL AUDITOR. ASSISTANT OFFICER . LTD.. REMUNERATION RECEIVED GROSS (Rs. 9/1/2006. CONSTRUCTION SUPERINTENDENT. CONSTRUCTION SUPERINTENDENT. GULF ENGINEERING. 1347755. B. CENTRAL PUBLIC WORKS DEPT.(ELECT. 1/7/1983. SR. DATE OF COMMENCEMENT OF EMPLOYMENT. SR. 5424607. CLERK. B. 3/10/1997. K. LAST EMPLOYMENT HELD. (4 YEARS) 1731332.(MECH. 12. 24/6/2002. 1669172.E. HONG KONG BRANCH. SR. 5038475. B.. 58. QATAR BRANCH. B. 63.. JUNIOR ENGINEER.). (1 YEAR) 1219159. PROJECT DIRECTOR. NATURE OF DUTIES. WAQAR NAZIR.D. 8/6/1970. 1/9/1982.COM..(TEXTILES). (2 YEARS) WAI KIM PING*. 902011.A. SR. B.(CIVIL).E. PLANNING MANAGER. 48. D. VAKIL PARJANYA*.TECH. 35.). 26. QUALITY PROJECTS MANAGER. 41.). BE(EL&ELE). 61. B.E. 48.) SOMANI AJAYKUMAR*.VICE PRESIDENT. M. NIL CONDITIONERS.E. REGIONAL SALES MANAGER-NORTH ZONE. MAHARASHTRA STATE ELECTRICITY BOARD. CHIEF PROJECT MANAGER..C.COM. 18/6/2007. B. 3/1/2008. 24/2/2007. SR. M.E. (2 YEARS) VENKATARAMAN S. B. DEPUTY PROJECT DIRECTOR. BAHWAN ENGG. 36. 11604819. ASTER. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. D.E. ETA-ASCON. SRIMAN PETROCHEMICALS LTD. (2 YEARS) SRIRAM R. 46. SINGAPORE. 28/5/1971. OFFICE OF THE DEPUTY GENERAL OF POLICE.SC. 6218724. 4476227. CLERK.. 2/2/2005. 17. TONK ANIL. 36. KOTHARI INDUSTRIAL CORPORATION LTD.ADMN.SC. D.I.)..E. RAVI*. INMARK PVT. REGIONAL FINANCIAL CONTROLLER. DESIGNATION. 2008 (contd. 43. DSD GMBH. 7/10/1971.E. 668376. 2805600. 2445462. PLANNING ENGINEER.INFORMATION AS PER SECTION 217 (2A) (b) (ii). 668376. 12.S. 1/7/2002. A. AUDIT ASSISTANT. 2671070. 26/8/1977. S. UNITED ARAB EMIRATES. B.. (2 YEARS) SYED HANEEF. DGM-TALENT ACQUISITION. 1823849. THOMAS O. A.. 4130865. 1036327.E. 20/1/1997. PROJECT MANAGER (ELECTRICAL).A. B.(ELEC. 1114819. SR. 58.G. MAINTENANCE ENGINEER. HR LEAD-EXPLORATION & PROD.) NAME. 16.M. B.E. EXPERIENCE YEARS. DESIGNATION.FINANCE. 57. 6241710..LTD. 2408843. 32. (4 YEARS) VENKATRAMANA V L... TANDON ANOOP*. RELIANCE INDUSTRIES LTD.*. WARNER-HINDUSTAN LTD. 49. PROJECT ENGINEER. 29/5/1995. 2009063. MANAGING DIRECTOR.. UNITED ARAB EMIRATES.. AMEC E&M ENGINEERING LTD. ASST MANAGER. 1324723...-ENGG. IN ENGG.).. 1/4/1990. 49. UNITED ARAB EMIRATES.B. (2 YEARS) VISWESWARAN K. GRAD.).. MANAGER. B. 60. CO.SC. 192292. MEP MANAGER. 27. NET (Rs.E.SC. NIL VAID RAMESH*. (MECH. 7. 2408843. D. B. M.. MECHANICAL ENGINEER.C. 2652585. PGDM. B PUMPS LTD. 12/1/1995.A. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES.. QATAR BRANCH. 965472. D. PLANNING ENGINEER. K... MECHANICAL ENGINEER. 42. 36. (14 YEARS) 552380..(ELEC. 6/2/1993. 37. QUALIFICATION. 583410.. DIVISION IN-CHARGE. 30. ENGG.E.. 725391. PLANNING ENGINEER. BUSINESS DEVELOPMENT-MANAGER. 4/6/1985. 30. (4 YEARS) 4463048. (1 YEAR) VARMA N. ELDER PHARMACEUTICALS LTD. A. SENIOR MANAGER-F&C..C.SC. BAHRAIN BRANCH. GROUP GM (TEXTILE). 738614. OFFICER. LL.. PROJECT MANAGER (ELECTRICAL). 41. NIL V.). 4476227. 591930. 48. R. DGM-ELECTRICAL PROJECTS. 61.. 47. 38. A. PROJECT MANAGER. JR. 5038475.C. UNITED ARAB EMIRATES.. (1 YEAR) SYED JAVED*.. 3347993.A. 61. 15. 64. (8 YEARS) VADAPALLI SIVARAMAKRISHNA*. (4 YEARS) VENKATESHWARLU NERELLA*.E. (3 YEARS) WORSLEY WILLIAM. UNITED ARAB EMIRATES.. 3/10/2006. PERIOD FOR WHICH POST HELD SECTION I .). DEPUTY GENERAL MANAGER-RESEARCH & DEVELOPMENT ZAMIL (1 YEAR) SONI ASHOK.MANAGEMENT STAFF (Contd.

38. 526573. NIL SINGH BIJENDER*. 18. 815000. 659319. 26. 57. NIL NARAYANAN RAMAN*. 480148.. SK-I MECHANIC. QUALIFICATION. R. compensation under VRS. 18. 664264. 17. 680233. 55. HOUSE-KEEPING. SSC. SSC. 16. 1/3/1982. HOUSE-KEEPING. HOUSE-KEEPING. 651304. SSC. 648253. NIL MANGAL WEDHEKAR NARAYAN R. 61. 44. 660587. 42. HOUSE-KEEPING. 34.. TAK MACHINERY LTD. 44. 38. 1/3/1992. NIL PARAB MAHESH*. 37. NIL MEHTA KEKEE*. 8. 628008. 5/10/1994. 11/7/1989. 650483.E. 26. 49. 549377. 664443. 1028175. SEMI CLERK. 463901. 22. NIL KURADE SATYABHAMA*. 633290 . 21. 217340. SERVICE SUPERVISOR. (3) Net remuneration is shown after deduction of contributions to provident fund. 54. 639579. 28/12/1968. 656369. NIL MORE SUNIL*. 1164558. NIL SUBRAMANIAN N. NIL CHAUHAN HARESH*. NIL KENI BAVTIS FRANCIS*. HOUSE-KEEPING. 16. SELECTION GRADE. 10/9/1991. 16/11/1989. 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. 8/6/1989. The other terms and conditions are as per the Company’s Rules. NIL BHANDARI ERESH*. 37. 26. house rent allowance. 33. 10/6/1982. 2. NIL VAKADE R. 45. 535834. 2008 14 . HOUSE-KEEPING. HOUSE-KEEPING. SK-I MECHANIC. 2/6/1969. NIL JASROTIA R. 394415. B. 49. 665822. etc. HOUSE-KEEPING. SK II MECHANIC. Company’s contribution to provident fund and superannuation fund. HOUSE-KEEPING. NIL SHISHUPAL GANESH*. 3/5/1999. DATE OF COMMENCEMENT OF EMPLOYMENT. 13. MECHANIC-II. 659712. 540731. 661051. NIL BHORE BHAUSAHEB*. 54. NIL TENDULKAR PRABHAKAR*. DATA ENTRY OPERATOR. 1/3/1982. 1151202. 35.M. 656937. 58. NIL PANDIT RAMPRATAP*. 657727. 50. SEL GRADE CLERK. The value of perquisites has been calculated as per Income Tax Rules. 558758. 13/5/1991. 35. 240000.*. 12. SWEEPER. NIL SHINDE BABURAO*. 38. 14. HOUSE-KEEPING. 1/11/1993. 660114. 656053. 39.Com. 663679. 21. 5/3/1990. 25. 55.*. 37. (4) None of the employees mentioned above is a relative of any Director of the Company. 16. 1109713. 25. 41. 16. In addition to the above remuneration. dearness allowance. NET (Rs. HOUSE-KEEPING. NIL PATHARE PRAKASH*. 18/9/1969. 37. 51. 644677. 24. ERECTOR II. HOUSE-KEEPING. 15Th May. 61. 25/5/1970. 39. NIL VANJARE SUNIL*. PERIOD FOR WHICH POST HELD SECTION II . 647731. 10/8/1987. 43. 41. 251846. 53. NIL FERNANDES N. 61. 649195. AGE. 653511. 634063 . SSC.*. 44. NIL FERNANDES XAVIER *. JR D’ MAN. DESIGNATION. SSC.). 3/11/1990. 32. 655000. 37. 396202. leave travel assistance. A. 662238. 1/1/1983. 685502. 647641.. 1123756. 1962. commission to Director. 29. 18. NIL GOSAVI DASHARATH*. NIL THORAT SANJAY*. 26. 13 YEARS. VEENA AUTOMOBILE SERVICE STATION. 36. 1208604... SELECTION GRADE. NIL PADAYACHI RAJU*.VOLTAS Annual Report 2007-2008 INFORMATION AS PER SECTION 217 (2A) (b) (ii). 1324374. 648543. 501313. 652446 . 655983. 1/3/1970. SK-II MACHINIST. 649750 . NIL * EMPLOYED FOR PART OF THE YEAR NOTES: (1) The nature of employment in all cases is contractual. HOUSE-KEEPING. DESIGNATION. NATURE OF DUTIES. SK II MECH. 769933. 12. NIL DUTT DURGA*. 643631. SK-I WELDER. 61. 5/9/1977. 228093.Com. REMUNERATION RECEIVED GROSS (Rs. EXPERIENCE YEARS. 56. 1276378. NIL DALVI NILKANTH GANPAT*. 658959. 22/5/1995. NIL KHARCHAN P. Company’s contribution to superannuation fund and income tax from the gross remuneration.OTHER STAFF AHIRE VASANT *. 890101. SSC. 1/3/1972. HOUSE-KEEPING.*. HOUSE-KEEPING. 1/3/1979. LAST EMPLOYMENT HELD. 658587. HOUSE-KEEPING. 659736. 61. M. 18. 659018. 542726. 2/12/1971. managerial staff are also entitled to gratuity and medical insurance benefits. M. 27/7/1979. 18. NIL KHAN MOBIN*. HOUSE-KEEPING. HOUSE-KEEPING. 657429. 12. 661354. 655522. HOUSE-KEEPING. GAIKWAD H. 11/1/1996. 649486. 1/6/1995. NIL KAPOOR ANIL*. 1/6/1994. 16. 28. SSC. 1/1/1986. 16. 61. 657236. 643462. 671853. 5/3/1992. 36. 61. 675830. CLERK-TYPIST. 16/5/1991. MECHANIC. 24/12/1969. HOUSE-KEEPING. 15/10/1989. ICWA INTER. 654881 . 2008 (contd. 38.) NAME. NIL BOBHATE DASHARATH*.). 11/4/1974. 660217. 12. 297114 . other allowances. PEON.*. bonus. SSC. 11. HOUSE-KEEPING. NCTVT.*. 61. 35. SWEEPER. SSC. 661388. 1/3/1982. 10 YEARS TAWADE DHONDU*. 1/5/1986. 591115.. NCTVT. M. NIL PATHARE ASHOK*. D. 45. while non-management staff are entitled to gratuity as well as certain medical assistance in accordance with the Company’s Rules. 43. 661679 . 20/5/1981.*. 47. 17. 61. SSC. NIL PALAV PRAKASH*. 501725. 9/8/1993. GODREJ-GE APPL LTD. 663264. NIL SARANGPANI VENKATESH *. 17/5/1996. Abbreviations used: CCD CIO COO CFO EM&RBG F&C HR HVAC IOBG Corporate Communication Department Chief Information Officer Chief Operating Officer Chief Financial Officer Electro-mechanical and Refrigeration Business Group Finance and Commercial Human Resources Heating Ventilation & Airconditioning International Operations Business Group MHBD M&CE QA/QC MTD PDC TMD UPBG WMBD Materials Handling Business Division Mining & Construction Equipment Quality Assurance / Quality Control Machine Tools Division Property Development Cell Textile Machinery Division Unitary Products Business Group Water Management Business Division On behalf of the Board of Directors ISHAAT HUSSAIN Chairman Mumbai. 500116. HOUSE-KEEPING. HOUSE-KEEPING. MAZDOOR. 40. NIL YADAV L. 38.*. 662746. 18. 16/12/1989. 650306. (2) Remuneration includes salary. NIL MANCHADI BAJARAPPA*. 526942. 660531. READ WITH COMPANIES (PARTICULARS OF EMPLOYEES) RULES. NIL DUMBRE RAMDAS JIJABA*. 486329. HOUSE-KEEPING. 556769. 22/5/1995. NIL MANCHADI ANJINAYA*. 41 . 948280. DIPLOMA IN COMPUTERS. NIL BIST ANANDSINGH SOBANSING*. 10/11/1990. NIL WAGHELA CHANDA*. HOUSE-KEEPING.COM. NIL GORE ASHOK*.

57 lakhs).76 lakhs (including captial expendire of Rs. (xiii) Wheel mounted screening plants – 300 ton. the R & D expenditure was 0. (vii) Development of ‘Freezer on Wheels’ with eco-friendly refrigerant and foaming system. when not required. (v) Switching off lights and air conditioners. Specific areas in which R&D carried out by the Company (i) (ii) Development of compact single effect Vapour Absorption Machine (VAM). (v) 1. (xiv) Wheel crushing plants – 100 ton. 17 models of eco-friendly Green Series Chiller Packages – Air and Water Cooled (90 TR to 360 TR).50% of turnover. (iv) 22 TR Air and Water Cooled PACs and DSUs. Energy Conservation The Company is conscious of the need for energy conservation and continues to explore the possibilities of reducing energy consumption in the Office premises and Plants. (vii) 125 L Freezer on Wheels. (ii) (iii) Use of 60 KW AC variable speed drive for condenser and chiller pumps for the test bed. distributed compressor airlines for improved efficiency at lower loads. Use of Compact Fluorescent Lights (CFL) in place of Fluorescent lamps. 4. (iv) Use of transparent polycarbonate sheets (nonconventional energy) for lighting purposes. (viii) 3 ton capacity diesel forklift truck. Product and processes developed through in-house technology (i) (ii) Compact Single Effect VAM in the range of 120 TR to 700 TR. (iii) Development of High Sensi Packaged Air Conditioner (PAC) and Ductable Split Unit (DSU) for Server rooms and IT applications. Some of the measures taken are as under: (i) Switching over to higher calorific value fuels for boilers. (v) Development of energy efficient air conditioners for telecom shelter applications. (xii) Triplex mast for 5 ton capacity forklift truck. Imported Technology No technology has been imported in last five years. capacitor banks to enhance power factor and use of variable frequency drives for motors. This has resulted into savings in power costs per unit of production. (ix) Development of base crushing units. (x) 2 ton capacity Electric Forklift truck with AC drive. (vi) Development of new range of horizontal coolers with improved aesthetics and eco-friendly refrigerant and foaming system. (iv) Development of higher capacity PACs and DSUs. (ix) 2 ton capacity Power Pallet truck. (xi) Empty Container Handler to handle 20’-40’ Empty Containers and stack them 3 ft. Expenditure on R & D The expenditure on R&D activities for the year 2007–08 was Rs. 3. high.5 TR x 2 and 2 TR x 2 split air conditioner for telecom shelter applications (Sensicool) with scroll compressor. putting off monitors of Desk Tops and ensuring that PCs are kept in hibernation mode when not needed. 2. (viii) Development of indigenous Manual Transmission Gearbox for 3 ton capacity diesel forklift truck. 15.204. 5.ANNEXURE TO THE DIRECTORS’ REPORT FORM B DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION 1. 15 . (iii) 11 TR and 17 TR Air Cooled PACs. This product works on eutectic pad technology which is unique in this product category. Development of eco-friendly Green Series Chiller Packages. (vi) New range of horizontal coolers from 90 L to 500 L capacity. In relation to the turnover of own manufactured products.

entertainment. power and airports. A large Financial Performance (Rs. the domestic Air Conditioning and Refrigeration business underwent a migration from HVAC to MEP business. confirming the robustness of its projects. The Company continued its journey on the path of accelerated growth and consolidated the foundation for sustained growth. 3. To address the needs of the growing industrial segment with its heavy investments in metals. the new business also received its ISO 9001:2000 certification for its ‘Electro-mechanical and Refrigeration Projects’. Dadra and Pantnagar. The ongoing economic buoyancy in geographies where the Company operates has offered opportunities for rapid growth of integrated engineering services. both in India and overseas and evolving new value propositions in these areas. The business segments of the Company are: (A) (B) (C) (D) Electro-mechanical Projects and Services Engineering Products and Services Unitary Cooling Products for Comfort and Commercial Use Others Segment Revenues 2007-08 (Rs. hospitality. Accordingly. airports and other service segments. the Company has created a focussed group offering innovative solutions in MEP. In crores) 16 . 5. 6. encompassing Mechanical. The Company’s revenue from domestic Electro-mechanical and Refrigeration business (EM&R) grew at 29% and profitability improved due to initiatives such as centralized material procurement and effective project management capabilities. enhancing and broadening its offerings of services. the Company has re-modeled its organizational structure. healthcare. Ventilation and Air conditioning (HVAC) are a sub-category. Neptune Mall and others. with a large number of players of international stature competing in the domestic market. To avert this outcome. In crores) 2. including Fortis Healthcare. There has also been a noteworthy achievement of substantial domestic order book growth of 56% over the previous year. with a focus on contract management and strong design support to meet the requirements of various applications. The expanded MEP offering has also resulted in the booking of several other high-value projects. In order to cater to these.VOLTAS Annual Report 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW 1. This has been accomplished by seizing opportunities resulting from sizeable investments made in IT/ITeS. This could lead to pressure on margins. A major achievement in the domestic MEP business was the completion of the new Rajiv Gandhi International Airport in Hyderabad. The market has become highly competitive in the MEP domain. This migration reflects wider scope of the services being offered. The Company’s primary focus during the year was in synchronizing. of which Heating. Voltas operating profits have grown 425% over the last three years ELECTRO-MECHANICAL PROJECTS AND SERVICES 4. Electrical and Public Health (MEP). 7. for increasing capacity and reducing delivery lead-time. The Company has taken several steps to tap the market opportunities and made investments in its manufacturing facilities at Thane. projects and products for better conformity with the needs of emerging markets and growth opportunities.

13. viz. Ferrari Experience Project (Abu Dhabi) and Formula 1 Racing Track related development (Abu Dhabi). the Company has set up a Cold Chain and Food Processing group to serve the needs of this growing segment.number of engineers and support staff have undergone the Project Management Professional Training program to better understand and implement the best practices and techniques in project management. crushing and screening plants and concrete equipment. dump trucks. including the retail stage of the supply chain. The Changi Water Reclamation Plant project in Singapore has been commissioned and is fully functional after completion of the additional proving period. During the year. 8. In both mining and construction equipment sectors. The Company’s Mining and Construction Equipment business achieved satisfactory sales of these products to mining customers. District Cooling Plant at DIFC (Dubai). ports. There was buoyant demand for construction equipment such as cranes. Barwa City Project (Qatar). Doosan and Volvo increased their domestic presence by setting up their own manufacturing and other operations to tap the Indian market. 15. 9. 10. which offer higher quality and the latest technical features. 14. including the Intercontinental Hotel refurbishment in Abu Dhabi. Indoor Air Quality (IAQ) is receiving serious attention in the domestic HVAC arena. close to Rs.are progressing well and are expected to achieve agreed milestones. The Company’s continued focus on Variable Refrigerant Flow systems (VRF) has resulted in a growth rate of 64% over the previous year. 3800 crores. The group’s competencies include total solutions at both the front and back ends. The international Electro-mechanical business secured orders for several very large and prestigious contracts. The Company successfully capitalized on these opportunities to retain its market share in trackmounted crushing and screening plants and increased its presence in the wheeled/static plant segments through sale of many machines manufactured locally at Thane Works. There is growing awareness of the need for reform in the agricultural sector to minimize wastage. resulting in order book growth in this segment of more than 250%. However. the Wafi Hotel and Mall project in Dubai and the Interim Doha Convention Centre in Qatar. The Company has been providing solutions for better indoor environment through many avenues. It also made a breakthrough in the sale of concrete pavers and tower cranes in the Indian market. steel. mainly in Qatar and UAE. industrial plants. cement and other minerals. The notable large value contracts include: Sidra Medical and Research Centre (Qatar). With its inherent capability to address these requirements. Two of the major overseas contracts . 17 . ENGINEERING PRODUCTS AND SERVICES 12. crushing and screening plants. Many multinationals such as Hyundai. the Company faced severe competition from locally manufactured products. The construction sector also showed strong growth. the margins have been under pressure due to increased competition and lack of anticipated growth in volumes. Qatar and Bahrain. limestone. This yielded large volumes of business for equipment like mining excavators. The Company has secured new projects in Singapore and Mauritius and expects to further concentrate its efforts there and leverage its presence. The Company continued with its thrust on project exports in overseas markets and retained its position as one of the key players in select Middle East geographies. in which it has significant operations. airports and others. 11. The Company launched its own brand of stackers in the market and has initiated development/manufacture of other products such as pallet trucks. This has resulted in the booking of large orders through the Agro Boards of various States. including zinc and bauxite. UAE. powered by investments in real estate and other construction projects such as roads. accompanied by value-added services such as extended maintenance contracts. irrigation and water supply schemes. Sales of warehousing equipment were reasonably strong due to investments in retail and logistics. power plants. Demand was strong for mining equipment. testifying to a promising future for this segment. the Company completed various works.Burj Tower (Dubai) and Bahrain City Centre (Bahrain) . The Company’s Materials Handling business managed to increase its overall sales of forklifts and cranes by around 12% and retained its market share despite increased competition. The Company was also successful in penetrating the market to increase sales of TCM forklifts imported from Japan. driven by investments in the expansion of mining capacity in coal. This has enabled the Company to end the year with a healthy position in terms of orders on hand.

The projects could also include provision for facilities such as District Cooling and BOOT solutions particularly. With the economic boom and growth in consumer industries. 17. UNITARY COOLING PRODUCTS FOR COMFORT AND COMMERCIAL USE 18. The Indian room air conditioner industry grew by 28%. reflecting the strong growth of the economy and the changing perceptions of consumers. 20. 21. who increasingly see air conditioners as a necessity rather than a luxury. establishment of SEZ and medical tourism. especially in the area of upgradation and modernization of airports. save on running costs for consumers. 19. OTHER BUSINESSES 23. resulting from the slowdown in major expansion in this sector. Within the category. Though priced marginally higher. fire detection and protection. In the refrigeration products business. the state-ofthe-art factory at Pantnagar – set up in a record 8 months – is now fully operational. The Company was amongst the pioneers in popularizing energy-efficient air conditioners in India. This is primarily because the automotive sector has sharply cut back on machine tool purchases. Public Health Engineering and other specializations will be outsourced to a single agency. 25. These offer an opportunity to demonstrate the engineering capabilities of the Company and move up the value chain.) Company Sales (Nos. Hercules. Integrated Building Management Systems. The Company’s Textiles Machinery business achieved growth of around 20% in Sales. while the Chest Freezer segment – part of the Commercial Refrigeration range – grew by 15%. services such as electricals. with sales growing by a robust 30%. SAC: Split Air Conditioner Source: Company estimates 18 . resulting in an increase in its market share from 15% to 16%. Split air conditioners grew by 45% while Window air conditioners grew by 17%. However. it is likely that in many projects. thereby improving the product-mix as well as the overall profitability of the business. with its Save Karo India campaign acknowledged as being effective in stimulating the market and creating a major differentiation for the Voltas Vertis brand. Development of Cold chain is becoming an imperative to deal with worldwide food shortage and price increases arising from global warming. paint. the billings from dispatches were along expected lines. due to orders already in hand. The Company is gearing up to handle these challenges with changes in organization structure and investments in Design Centre and training. increase in consumption pattern and populations and depletion of arable areas. Split air conditioners showed remarkable growth of 55%. Korea performed well. In the domestic market. Water Coolers produced at the factory registered a growth of 23%.VOLTAS Annual Report 2007-2008 16.) Company Share 22. the Government’s renewed focus on National infrastructure development. Huntsman Tioxide and OCI Corporation. This was achieved in an adverse climate marked by a sharp decline in machinery investment since the last quarter of financial year 2006-07. in SEZs and large commercial complexes. construction chemicals and plastics industries. In addition. In future. The business also sustained its leadership position in Water Dispensers. All major agency lines like Aqualon. the Company saw good growth in chemicals supplied to the personal care. It is 2007-08 2006-07 Growth 2007-08 2006-07 Growth 2007-08 2006-07 WRAC SAC Total 1125000 960000 925000 640000 2050000 1600000 17% 144000 115000 45% 189000 122000 28% 333000 237000 25% 55% 41% 13% 20% 16% 12% 19% 15% WRAC: Window Room Air Conditioner. The sales performance of the room air conditioner business is summarized below: Category Industry Sales (Nos. The Company’s Chemicals Trading business benefited from several opportunities during the year under review. the concept of MEP has been well received by consultants and customers. these energy-efficient air conditioners found ready market acceptance because they consume less electricity and thereby. The plant achieved the milestone of crossing one lakh units in March 2008. will lead to tremendous scope for expansion in this business. The Company’s Unitary Products business achieved a 41% increase in its sales volume of room air conditioners. OPPORTUNITIES AND OUTLOOK ELECTRO-MECHANICAL PROJECTS AND SERVICES 24. The Company’s Machine Tools business suffered a decline in performance in comparison with the previous year.

as is presently under way in the automotive sector. In the Company’s international Electro-mechanical business. The industry is expected to grow at 25% to 30% per annum over the next few years. 27. interest rates and the worsening power situation in many textile-producing states. ENGINEERING PRODUCTS AND SERVICES 29. arising from significant economic growth. remains buoyant. retail and other areas. are riding on the high level of oil prices and surpluses generated. hotels. 31. malls. the Company’s Textile Machinery business has geared itself to tap the existing market by offering better services and additional machines in the post-spinning area.expected that this area will receive increased attention from the Government and international development bodies. being major oil producing and exporting countries. offering opportunities in a variety of equipment categories. in particular. UAE and Qatar. Nevertheless. engineering. This change will help better focus on the market and the capability to comprehensively address business imperatives right from talent acquisition up to delivery of goods. The Company’s Joint Venture in Saudi Arabia is likely to be converted into a wholly-owned subsidiary during the early part of financial year 2008-09. the mills are deferring investments in modernization and creation of new capacities. 30. The cost of production has gone up substantially in almost all textile mills and cannot be absorbed in the selling price of the final products. the Middle East. the operations of the Company’s Machine Tools business are being reorganized into four main operational groups. petrochemicals. Qatar and Bahrain show evidence of sustainability. The market for air conditioners is expected to continue growing at over 20% in volume and the product mix is likely to shift in favour of splits over window air conditioners. Overall. Many projects are likely to come up in automobiles. 16 trillion planned over the next 10 years. 19 . 26. 28. hospitals and district cooling facilities offers considerable opportunities for the Company to grow its business and strengthen its presence. consequently. UNITARY COOLING PRODUCTS FOR COMFORT AND COMMERCIAL USE 33. that are being largely ploughed back into developmental projects related to social and physical infrastructure. The climate is conducive for the Company to seize the opportunity and take action towards long-term profitable growth. This situation is likely to continue for the next couple of years. Saudi Arabia is expected to grow into a key market for the business in coming years. The textile industry is undergoing severe pressure on its margins. steel. The Company is constantly reviewing the geographies in which it operates to ensure that the business is not exposed to regional/country concentration. The prospects for the Company’s Mining and Construction Equipment business are strong. offering good prospects for various types of materials handling and warehousing equipment. where the opportunities appear to be sustainable and sizeable. 32. more robust prospects are awaited in industrial sectors. hence the requirement for food processing as a distinct line of business. It is also exploring other markets for expanding its revenues. In the Company’s Materials Handling business. The Government has already initiated a large number of schemes to attract investments in the food sector largely towards automation of processes. as the Government is committed to sustained development of the infrastructure sector. A specialized Design Center at Pune was inaugurated for application engineering in which the customer can participate. affecting the bottom line of many textile mills. airports. The Company is presently restructuring and consolidating its current market activities in Saudi Arabia. To mitigate the risk of slowdown in one of the business under this segment. The financial year 2008-09 is expected to be significantly better owing to the re-orientation and sharpened focus. with the expectation of investments in manufacturing capacities. mainly the GCC States in which the Company is already active. The spurt in construction of high-end development projects. The Company has taken initiatives to provide integrated solutions for meeting cold storage and food processing industry needs. the focus markets of UAE. The adverse factors are exchange rates. which is likely to help in sustaining the Company’s position despite adverse market conditions. with a huge investment of over Rs.

the absence of dominant MNCs provides an opportunity to sustain the Company’s leadership position. The Company is also expanding its distribution to smaller towns and semi-urban areas. leading to a situation of time overruns and cost escalations beyond the Company’s control. The available talent is upbeat on the new lines of business and committed to moving for faster growth. The entire spectrum from pre-sale to handing over of project is evaluated against probable and potential risks. the sourcing possibilities of talent from India have been limited in the face of huge demand and the rise in domestic salary levels. bottle coolers. Risk identification and mitigation are ever-growing considerations in the MEP business. For overseas projects. Pound Sterling and even Indian Rupee (b) uncertainty with regard to cost of third-country purchases (c) loss in translation when reporting the performance of overseas projects in Indian rupees 20 . 41. Middle East and Europe depending upon the skill levels required. The severe workforce shortage is felt across all levels in the industry. reward and recognition processes. Encouraged by the widespread consumer acceptance of energy-efficient air conditioners largely due to lower operating costs. 40. customers and project management companies. The Company has therefore diversified its reach to sources like Philippines. HR has been considerably restructured and reinforced accordingly. vis-à-vis the Euro. The boom in the Middle East coupled with the rapid growth in the domestic market has compounded the need for hiring fresh talent and mobilizing them in large numbers. This could impact revenues and profitability. 35. The management of human resources is the primary challenge facing the electro-mechanical business. to tap growing disposable incomes. 39. Though the growth rate in this category of products – freezers. the Company is broadening its offerings and consolidating its lead in this segment. There is severe volatility in the metals market. The MEP business also has to contend with currency fluctuations. 37. including consultants. both domestic and international. The Company is exploring the possibility of getting new orders on a Cost Plus basis so that to a large extent the cost-over runs are covered. but often this risk lies with the EPC contractor. The Company has mobilized its HR function to chalk out several measures to mitigate the difficulties and challenges on this score. since larger projects have extended completion time frames. assessment. To address this situation. This is causing multiple challenges in terms of (a) weakening of Middle East currencies caused by the decline in US Dollar. the Company is exploring other growth opportunities in this category.VOLTAS Annual Report 2007-2008 34. HR initiatives taken by the Company include periodic benchmarking and review of compensation packages for staff and continuous improvement of appraisal. A Global Engineering Centre at Mumbai has been set up and is being ramped up to meet the requirement of overseas offices and projects. as the client insists on a firm and fixed price contract. There is a huge intensification of focus on talent acquisition. 42. apart from training and developmental intervention. water coolers – is only around 10% per annum. THREATS ELECTRO-MECHANICAL PROJECTS AND SERVICES 36. particularly for steel. The Company is working in tandem with several vocational training institutes to impart relevant training and exposure to fresh students. It has introduced a new range of air conditioners for the premium customer segment and is taking steps to tie up with organized retail channels that provide a new shopping format and experience to customers. Malaysia. making them ready for the scope. With all these measures. copper and aluminium as well as PVC. with unpredictable forward movements causing difficulty in factoring them for pricing purposes. Other initiatives to minimize the on-site staff requirement have been through off-shoring of pre-bid work and post-award Design and Engineering activity. A facility has also been created to train new entrants continuously as a buffer for growing demands. The Company has formulated a structured risk assessment process through competent consultants. Retention of human resources is also threatened by inducements from competitors and from clients and consultants. In the Commercial Refrigeration segment. complexities and standards of Projects. There is also considerable exchange of ideas in terms of knowledge sharing from projects that have been completed. The Company attempts to negotiate with clients for a formula for compensating for the price escalations arising from metal prices. apart from regular salary reviews. greater focus is being given to empowerment of staff. the Company expects to maintain a high rate of growth. as well as motivated to take on bigger challenges. employee engagement and career planning. 38.

the Company has initiated cost-effective manufacturing operations. If the overall economic scenario witnesses slow down. project management capabilities and migration into the allied segments of cold chain and food processing. There is also the threat of local manufacturers of low-cost products which could result into a dip in the Company’s market share. hedging and forward buying to the extent possible. South East Asia. The domestic market is dominated by the presence of key international players. generating pressure on margins. Moreover. The boom in various construction activities and related business opportunities in the Middle East is attracting newer established players from Europe. 52. this results in destabilizing the pricing norms and adds to the pressure on the Company’s margins. thereby offsetting the positive effect of strong growth in sales volumes. demand for products and services is out-stripping supply. There could be added adverse impact due to a rise in steel prices and other input costs. 45. The tight labour market is also causing an annual increase in salaries of about 15%. The combination of greater competition and sharp increase in input costs is therefore putting pressure on margins in the air conditioning and refrigeration industry. The rise in input costs like steel and lead would also put pressure on margins. FINANCIAL PERFORMANCE 53. thereby increasing the cost pressure. a few of whom are setting up manufacturing facilities for greater cost-effectiveness. 51. 49. 44. Invariably. There has been an unprecedented spurt in global prices of metals like copper and steel – major raw material constituents of air conditioners and commercial refrigeration products. since increased competition would limit the Company’s ability to increase product prices. These external factors have fuelled intense competition. This could be due to foreign principals starting their own operations in the Indian market or going with another partner for local operations. In Mining and Construction Equipment business. 48. The Company’s success in launching energy-efficient air conditioners has seen most competitors flock to this platform as well. 43. The Company has been taking steps to minimize the effect of metal price volatility and currency fluctuation through measures like reliable and realistic forecasting. To overcome this. resulting in a slowdown in the industry and increased pressure on margins.(d) erosion of net realisation from remittances to India by employees in the Middle East due to the rupee’s appreciation. UNITARY COOLING PRODUCTS FOR COMFORT AND COMMERCIAL USE 50. causing workforce dissatisfaction. The unprecedented growth in project activity in the Middle East is also causing a severe mismatch on the supply side. the Company could face adverse consequences due to loss of business/principals. the textile industry will be impacted more severely. ENGINEERING PRODUCTS AND SERVICES 47. with leading multinationals as well as Indian companies competing for their share of this emerging market. which has increased import of low-cost forklifts and other materials handling equipment from China. 46. The Room air conditioner category is therefore one of the most competitive. new competition is emerging from large Chinese companies setting up their base in India. A major challenge is the steep inflation rate. profit improvement plans. resulting in greater competition. Turkey and other regions. making EPC contractors vulnerable to the dictates of vendors and subcontractors. Manufacturing costs are therefore going up substantially and the cost increase has more than offset the slight reduction in the excise duty from 16% to 14%. The major threat for the Materials Handling business is the strong rupee and low customs duty. many of whom resort to aggressive pricing to gain a foothold. Financial performance as a measure of operational performance 21 .

90 crores in 2007-08.71 Change Change % 0. The increase is commensurate with higher order booking as well as increase in business volumes.77 Change Change % 424.102.45 87% 2007-08 Other Income 31.39 (-) 1% 26% Sales and Services increased by 26% in 2007-08 to Rs.50 crores in 2007-08 as compared to Rs.43 crores in 2006-07 due to larger volume of Unitary Products business through sales dealers.78 (-) 0. Revenue from ‘Others’ was lower by 1% in 2007-08 at Rs. Staff expenses as a percentage of turnover have come down by about a percentage point.18 crores in 2006-07.31 23% Cost of Sales and Services increased by 23% in 2007-08 to Rs.1652. moving and shifting expenses.50 432. loss due to foreign exchange variation.88 crores from Rs.39. 240.90 2006-07 1367.17 crores from Rs. in crores 2007-08 Other Expenses 107.43. Company’s contribution to PF and other funds.66 crores in 2006-07.08 crores in 2006-07.98 crores in 2007-08.85 2006-07 240. 22 .17 40.78 crores in 2006-07.43 Change Change % 20.08 crores from Rs.117. during the year under review. selling expenses.67 crores from Rs. outside service/contract labour charges.37 141.3086.2450. retiring gratuity and welfare expenses. profit on sale of non-trade current investments and miscellaneous income increased by 3% in 2007-08 to Rs.74 crores in 2006-07 to Rs. However.79 crores as compared to Rs.49 610. annual increments and salary revisions. Other Expenses increased by 24% in 2007-08 to Rs.1367. While Staff Expenses for domestic businesses increased by 16% in 2007-08 to Rs. 276.38 Change Change % 20. the overall increase was lower than the increase in turnover.96 3% Other Income comprising rental income.18 2450.88 2006-07 23. wages.VOLTAS Annual Report 2007-2008 (a) Sales and Services (Segment Revenues): Rs.51 crores from Rs.86. The Company registered a growth of 34% in its Unitary Cooling Products for Comfort and Commercial Use segment and reported higher revenue of Rs. (f ) Other Expenses: Rs.08 2006-07 1810.16 21% Staff Expenses 2007-08 276.71 crores in 2006-07.79 3086.38 crores in 2006-07. Commission also includes Agency fees and Sponsorship fees on overseas projects.74 Change Change % 285. primarily due to increase in rental income.137. In Electromechanical Projects and Services segment.49 209.432. in crores Staff Expenses comprise salary.1810.610.85 crores from Rs. The increase in Cost of Sales and Services is lower than the increase in turnover. (e) Commission other than to Sole Selling Agents: Rs.13 33% 34% 39.31. the increase in international business was 14% at Rs. Revenues of Engineering Products and Services segment was higher by 33% and it increased from Rs.49 crores in 2006-07 to Rs.77 15% 573. cash discounts and royalty.2235.107.77 crores in 2006-07 primarily due to larger business volumes. the increase in revenue was 21% from Rs. (b) Other Income: Rs.40.34 crores as compared to Rs.29 crores as compared to Rs.29 2006-07 86.08 Change Change % 36. bonus.573.98 819. Other Expenses includes service maintenance charges. basically due to increase in manpower including contract employees for overseas projects.37 crores in 2006-07.819. in crores Commission other than to Sole Selling Agents increased by 87% in 2007-08 to Rs. (c) Cost of Sales and Services: Rs.30.23. staff selection expenses. in crores 2007-08 Commission other than to Sole Selling Agents 43. in crores (d) Staff Expenses: Rs. in crores 2007-08 Segment-A (Electromechanical Projects and Services) Segment-B (Engineering Products and Services) Segment-C (Unitary Cooling Products for Comfort and Commercial Use) Others Total 1652.91 24% 2007-08 Cost of Sales and Services 2235. indicating higher productivity.159.42 crores in 2006-07. Staff expenses increased by 15% in 2007-08 to Rs.39 635.67 2006-07 30.

Deferred Tax.83 67.08 22.32 crores in 2006-07. transfer of development rights and surrender of tenancy The Company’s Net Profit for the year 2007-08 was higher by 12% at Rs. Provision of Rs.78.13 (-) 19% (-) 58% 666% Interest paid decreased by 19% in 2007-08 in line with the reduction in borrowings.75 Change Change % 62. in crores Income from Investments was lower in 2007-08 at Rs. (m) Profit After Tax (Net Profit): Rs. FBT which is payable on the value of benefits provided and/or deemed to have been provided to the employees was higher in 2007-08 at Rs. same as in the previous year. in crores rights.92 27.50 3.66 2006-07 7. no income tax was payable on a significant portion of exceptional income/ dividend income and therefore.13. Dadra and Pantnagar.34 Change Change % (-) 23.28 Change Change % 12 Exceptional income comprise profit from sale of properties.1.84 (-) 72% (-) 105% (-) 56% 2007-08 Profit After Tax (Net Profit) 208. (j) Exceptional Items: Rs.12.36 2006-07 186.10 crores in 2006-07.83 crores in 2006-07.25 crores as compared to Rs.13 0.32 crore.18 (-) 16.17 2006-07 36.61 crores on Income-tax refunds.08 crores for the year 2006-07.56 2006-07 12.27.10 11.31 0.50 crores was created towards Deferred Tax Asset as on 31st March.71 Change Change % (-) 72. Exceptional income in 2006-07 was significantly higher at Rs.34 crores as compared to Rs.32 Change Change % 1.54 crores due to profit on sale of trade investments (Rs.3.37. the provision for income tax was lower vis-à-vis total income. in crores Provision for taxation comprise provision for current income tax including foreign income tax. Similarly. (l) Provision for Taxation: Rs.37 (-) 4.4. in crores 2007-08 Profit Before Tax 307.8.47 Change Change % (-) 1.40 crores for 2006-07.11.00 (-) 88% – 780% (-) 59% Profit Before Tax increased by 38% in 2007-08 to Rs. (h) Income from Investments: Rs. The increase was primarily due to additions made in building premises and in plant and machinery at the Company’s factories at Thane. Provision for Wealth tax for 2007-08 was Rs.30 2. provisions for contingencies and revision in estimated gratuity liability at the beginning of the year. Dividend income in 2006-07 was higher due to dividend/interim dividend received from many companies including a one time large dividend from a subsidiary company.06 crores).60 crores in 2006-07.208. 307.222. Exceptional expenses comprise VRS cost.36 crores as compared to Rs.18 – 7.96 3.24 10% Depreciation charge increased by 10% in 2007-08 to Rs. Exceptional expenses in 2006-07 were higher due to closure of factory at Hyderabad.11 0.71 38% 2007-08 Dividend Income Interest income on Investment Income on current Investments Total 3. diminution in value of investments and provisions for contingencies and doubtful advances. in crores 2007-08 Interest paid Less: Interest received Net Interest 5.54 crores from Rs. As stated aforesaid.33 7.11 8. (k) Profit Before Tax: Rs.54 2006-07 222. in 2006-07 due to higher dividend income including one time large dividend 23 .(g) Interest (Net): Rs.0. Income on current investments is dividend received on units of mutual funds.34 2006-07 26. Current income tax (net) was higher at Rs.42 170% 2007-08 Depreciation on Fixed Assets 13.34 crores in 2006-07. Interest received in 2006-07 also included Rs.83 Change Change % 84.25 (-) 34. Last year.100.80 (-) 0.41 (-) 37. Wealth Tax and Fringe Benefit Tax (FBT). 2008 as compared to a Deferred Tax Asset of Rs.87.87 2006-07 100. in crores 2007-08 Exceptional Income Less: Exceptional Expenses Exceptional items (Net) 28.54 32. in crores 2007-08 Provision for Taxation 99.2.29 (-) 1.56 crores from Rs.186.58 29. (i) Depreciation on Fixed Assets: Rs.10 crores for the year 2007-08 as compared to Rs.

39 130.65 57. While increase in finished goods was primarily in the Unitary Products segment.20 2006-07 893. 2008.28 140.67 2006-07 82.75 Change Change % – 157. (ii) Secured Loans: Rs.82 609.91 482.11 278.61 1.69 2006-07 468. 2007.Units of Mutual Funds .61 1.17 90. in crores During 2007-08.Trade Investments . the overall tax incidence was lower resulting into higher Profit after tax.07 266.140 crores).27 Change Change % (-) 37.65 57.Government Securities . The borrowings reduced by 42% to Rs.79 14.32 2006-07 33. (iii) Fixed Assets: Rs.91 21% 2% 23% 2007-08 Gross Block Less: Depreciation Net Block Capital Work in Progress Total 263.67 crores as at 31st March.05 123.61 130.84 6.221. the Company generated cash from business operations and sale of properties which were invested in units of Mutual Funds.77 148.80 14.01 0. in crores 2007-08 Share Capital Reserves and Surplus Total 33.08 167.26 (-) 26.13 7. in crores The increase in fixed assets is due to capital expenditure incurred on land and buildings and in plant and machinery.89 115. (vi) Sundry Debtors: Rs.01 – – 0.01 0. 2008 were lower at Rs.02 122.57 – 45% 41% 2007-08 • Raw materials. in crores 2007-08 Secured Loans 47.14 Change Change % (-) 34.60 crores as compared to Rs.93 18.31 36.07 14% 8% 63% 26% The increase in Reserves and Surplus is basically in General Reserve on account of current profit transferred from Profit and Loss Account (Rs.74 18.68 380.91 127. in crores Inventories comprising raw materials.66 169.49 2006-07 238.24 20. stores and components • Work-in-progress (net) • Finished goods Total 100.33 (-) 11. in crores 2007-08 Sundry Debtors (Gross) Less: Provision for Doubtful Debts Net Debtors 566.40 143.150.11 34.60 7.64 97. increase in work-in-progress was in respect of contracts under execution in India and abroad. FINANCIAL POSITION (i) Shareholders’ Funds: Rs. (v) Inventories: Rs.VOLTAS Annual Report 2007-2008 from a subsidiary and substantial portion of exceptional income.51 Change Change % 12. 54. work-in-progress and finished goods increased by 26% as on 31st March.94 – (-) 0.26 Change Change % 324.56 147.06 crores as on 31st March. 2007. in crores 221.Other Investments Total Long Term Investments • Current Investments: .20 2006-07 187. in 2006-07.56 145% – (-) 91% 144% 88% 2007-08 • Current Liabilities • Provisions 1217.62 10% 6% 14% 211% 23% The increase in Sundry Debtors is primarily due to increase in business volumes.87 Change Change % 24.12 0. 2008 as compared to Rs.39 204.06 0.07 347.55 130.03 129.Investment in subsidiary companies .05 Change Change % 0. (vii) Loans and Advances: Rs.72 29.82.78 Change Change % 98.12 crores as on 31st March.33 433.58 2006-07 87. The Company has liquid investments in Mutual Funds of Rs.69 242.06 2006-07 40.83 245.57 157. 2007.23 16.14 crores as on 31st March.Other Securities Total Current Investments Total Investments 40.92 93.75 159. 2008 as compared to Rs.97 531.43 90.93 crores as on 31st March. (viii) Current Liabilities and Provisions: Rs.66 34. in crores 2007-08 Loans and Advances (Gross) Less: Provision for Doubtful Advances Net Loans and Advances 150.187.07 505.90 12. The reduction was primarily due to receipt of income tax refunds and netting off of advance payment of taxes with provision for tax.25 538.07 (-) 20% (-) 60% (-) 15% 2007-08 • Long Term Investments: .01 – – – – Loans and Advances (Gross) as on 31st March.90.94 36% 22% 24 .04 221.47 (-) 42% Secured Loans decreased in 2007-08 primarily due to part repayment of term loan and lower utilization of credit facilities from banks for execution of large size overseas projects. (iv) Investments: Rs.47. not attracting income tax.55 0.

These proceses are also being fine tuned with experience gained over a period of time. As stated in subsequent paragraphs.82 crores as on 31st March. Similarly. Some of these cost increases are believed to be speculative and therefore. If the borrowings are netted off against the cash and bank balances of Rs. the Company has been building adequate cost increases. 221 crores per 31st March 2008 as against Rs. may get corrected over a period of time. but with significant volatility in the interim.Current Liabilities basically comprise Acceptances. 91 crores per end of the previous year. 2007. The Company has put in place adequate mechanism for managing the risks of such input cost increases by adequately building in future expected cost increases in the estimation processes. getting human resources with the right skills and experience in the numbers required for executing the orders is going to be a big challenge for most engineering companies. the risk registers are periodically updated and the risk mitigation actions are reviewed. 2008 as compared to Rs.485.71 crores for 2006-07.26 crores as on 31st March. The Company will need to be on its guard to ensure that there are no substantial losses arising from exchange differences. The prices of steel and copper have been consistently increasing with some very significant up swings in the recent past. Sundry Creditors were higher at Rs.514. Similarly. it would be in a position to mitigate this risk.270. The Company. passing on the risk on a back to back basis.10 crores as on 31st March. proposed dividend/dividend tax. 2008 as compared to Rs. The Company manages its Treasury operations as a risk mitigation tool as opposed to being a profit center and therefore does not enter into any speculative deals. The Company intends to run its businesses in a manner that makes it capital light and therefore continue to improve its Return on Capital employed which stands at 49. 59. to a large extent. Overall. the Company is likely to be comfortable in terms of liquidity and will be able to garner further capital resources as and when required. The Company has taken several steps to ensure availability of required manpower with adequate skill levels. 57. has significant consumption of steel and copper. LIQUIDITY AND CAPITAL RESOURCES 55.52.10 crores as on 31st March. optimum utilization of resources and compliance with statutory regulations. the increase in parity value of Rupee against US Dollar in the preceding year and the lower availability of personnel will also put tremendous pressure on staff costs in the years to come unless there is a drastic change in the environment. 25 . INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY 60. Therefore. In view of the high inflation in Middle East. the Company is cash surplus.20 crores as on 31st March. The Company believes that with such mechanism in place. The total payout on account of dividend including tax on dividend for 2007-08 would be Rs.26 crores as compared to Rs. 2008 as compared to Rs. trade guarantees.167. The Company has liquid resources amounting to Rs.73 crores as on 31st March. it has the capacity to borrow funds. The Company has a proper and adequate system of internal controls geared towards achieving efficiency in its various business operations. 2007. Due to increase in business volumes. another challenge is the uncertain condition in the foreign exchange markets. in the foreseeable future. At the same time. 58. Sundry Creditors and Advance payments/deposits received from customers. in line with the anticipated staff cost increases in its budgeting and estimation processes to address the risk of Human resources. There has been significant volatility in the exchange rates and the continuing appreciating Rupee has suddenly taken a turn towards substantial depreciation. The current environment is very uncertain on many fronts. The Board of Directors have recommended dividend of 135% for 2007-08 as compared to 100% in 2006-07. in its various businesses. 2007. 86 crores available for free use. there has been volatility in the rates of other currencies vis-à-vis US Dollar. hedging of the risk on LME and on the local exchanges. All hedging instruments are used appropriately only against confirmed open exposures. Commodity markets is another high risk area. RISK AND CONCERNS 56.614.38. compensated absence/ pension/ gratuity/post retiral medical benefits were higher at Rs. The Company has adequate resources available for future growth and expansion and in view of a very low level of leverage. Advance payments/deposits received from customers were also higher at Rs. to the extent possible. The overall provisions made by the Company towards taxation. safeguarding of assets.204.57% for the year 2007-08. the Company is making further changes in its structure to ensure that a constant watch is maintained on the risk mitigation processes.

where necessary. primarily for overseas projects. 65. 2007 at all locations. profitability and risk ratings of overseas contracts and the status of outstandings and inventory levels. 70. 64. This will help in creating the ‘Engaged Voltasite’. CAUTIONARY STATEMENT 73. ensuring adherence to operating guidelines and systems and recommending improvements for strengthening them. The availability of the right talent for MEP projects in India and overseas continues to be a challenge in the context of the boom in infrastructure projects in India. courses and seminars to attain all-round employee development and growth in line with strategic business requirements. including Employee Nite with the participation of employees and their families. tax laws and other statutes and other incidental factors. The Company has emphasised career planning and development of its key talent pipeline. estimates and expectations may be ‘forward-looking statements’ within the meaning of applicable securities laws and regulations. development and retention in order to gear itself for expansion. which consists of three non-executive independent directors. The Company has put in place a Risk Assessment and Mitigation process across all its business operations. 72. a firm of Chartered Accountants. The Company continued its efforts at building skills and capabilities of its employees. various initiatives were taken at all locations. The total staff strength as on 31st March. Most of the Company’s Divisions and Functions are certified under ISO 9001:2000. 63. Significant audit findings and suggestions along with the ‘Action taken Reports’ are regularly reported to the Board Audit Committee. Human Resource capability is a key source to the Company’s competitive advantage. Important factors that could make a difference to the Company’s operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates. 26 . Actual results could differ materially from those expressed or implied. The Internal Auditors engaged by the Company perform their function under the overall supervision of the Board Audit Committee. The Company has also engaged. Statements in the Management Discussion and Analysis describing the Company’s objectives. The Company has continued its efforts to align its processes and controls with best practices and has put in place a process-wise internal control framework across the Company. The Management places on record its appreciation of the employees’ contribution in the Company’s performance during the year under review. Focussing on employee engagement both at the enterprise level and also at the level of the individual manager. a highly integrated ERP solution. Voltas Day was celebrated on 6th September. 67. The Board Audit Committee monitors and reviews the significant audit observations. projections. Towards making Voltas a ‘fun place to work’. Training in project management and managerial effectiveness has been a major area of focus during the year. The Department reviews and evaluates the adequacy and effectiveness of internal controls. The Company had in 2006-07 appointed M/s Mahajan & Aibara. which is reviewed by Management and the Board Audit Committee. 2008 was 7378. The Voltas Employees’ Union celebrated its Diamond Jubilee in July 2007 and the Chairman and Corporate Management Members attended the grand function. changes in the Government regulations. including 3797 contract staff. It has also implemented SAP. 68. outside professional firms for updating its internal processes so as to ensure adequate internal controls. 69. including overseas operations. HUMAN RELATIONS 66. The industrial relations in the Company continue to remain excellent.VOLTAS Annual Report 2007-2008 61. The Internal Auditors of the Company conduct audits of various departments based on an annual audit plan covering key area of operations. 71. The initiatives include internal and external training workshops. to harness the skill sets in the areas of indirect taxation. risk management and control systems. The Company strengthened its processes of talent acquisition. Voltas’ achievements have been made possible because of the employees’ dedication and commitment. compliance with accounting standards. 62. CISA. The Company’s in-house Internal Audit Department comprises qualified CAs. etc. supply chain management and manufacturing. a number of steps have been initiated.

ten Board Meetings were held on the following dates: 20th April. 2008 modified the existing requirements whereby if the NonExecutive Chairman is a Promoter of the Company or is related to any Promoter. 3 are Independent Directors. (b) Non-Executive Directors’ compensation and disclosures The Sitting fees paid to Non-Executive Directors. as may be necessary. 2007. ethics and business principles. The Company is examining this requirement and would re-constitute the composition of its Board of Directors. 8th November. The Company has adopted the Tata Business Excellence Model as a means of driving excellence and the Balanced Scorecard methodology for tracking progress on long term strategic goals. The Company has also adopted the Tata Code of Conduct which serves as a guide to each employee including the Managing Director. The necessary disclosures regarding Committee positions have been made by the Directors.IA to Clause 49 of the Listing Agreement is made available to the Board. 2007. 2008. actions taken in respect of suggestions made/decisions taken at Board/Board Audit Committee Meetings are reviewed by the Directors. all proposals of investments. The aforesaid Resolution passed was for a period of five financial years. Capital as well as the Divisional Budgets/Strategic Business Plans are presented in detail to the Directors and their valuable inputs/suggestions are taken. 8th December. Considerable time is spent by the Directors on discussions and deliberations at the Board Meetings and their active participation is reflected by the number of meetings held during the year and attended by the Directors. Board of Directors (a) Composition The present Board comprises 8 members: 7 NonExecutive Directors (NEDs) and the Managing Director. on the standards of values. The information as required under Annexure . The Company subscribes fully to the principles and spirit of good Corporate Governance and embeds the principles of independence. execution of overseas mega projects and credit facilities in respect thereof are placed before the Board for its consideration and appropriate decision in the matter. 2007. The Company does not have any Nominee Director. In addition. Similarly. Company’s philosophy on code of governance Good Corporate Governance is an integral part of the Company’s Management and business philosophy. to be calculated in accordance with the provisions of the Act. The Whistle Blower Policy of the Company provides a mechanism for the employees to approach the Chairman of Board Audit Committee/Ethics Counsellor and disclose information that may evidence unethical or improper activity concerning the Company. at least one-half of the Board shall consist of Independent Directors. The Annual Calendar of Board Meetings is agreed upon at the beginning of the year and the Notice for Board Meetings and detailed agenda papers are circulated to all the Directors well in advance to enable them to attend and take informed decisions at the Meetings. 27th June. 2004 passed the Special Resolution approving payment of commission to Non-Executive Directors not exceeding 1% per annum of the net profits of the Company. accountability and transparency into the value system driving the Company. The shareholders have at the 50th Annual General Meeting (AGM) held on 27th August. commencing from 1st April. 2007. Of the 7 NEDs. 2007. across all the companies of which he is a Director. None of the Directors on the Board hold directorship in more than 15 companies and no Director is a Member of more than 10 Committees and Chairman of more than 5 Committees (as specified in Clause 49). The Board periodically reviews compliance of all laws applicable to the Company. All the Directors of the Company are liable to retire by rotation and there is no permanent director. 2008 and 17th March. periodically. 2005. SEBI has recently by its circular dated 8th April. to rectify instances of non-compliances. (c) Other provisions as to Board and Committees The gap between two Board Meetings does not generally exceed 2 months as against the statutory requirement of the gap not exceeding 4 months. 2007. 20th July. 25th October. During the year 2007-08. integrity. 27 . The Board of Directors exercise their fiduciary responsibilities towards all stakeholders by ensuring transparency and independence in the decision making process.Report on Corporate Governance 1. including Independent Directors for attending Board/Committee Meetings are within the limits prescribed under the Companies Act. based on a certificate given by the Managing Director including the steps taken. The Company has a Non-Executive Chairman and the number of Independent Directors is more than one-third of the total number of Directors. 14th May. 2. 2007. The annual budgets – Revenue. divestments and decisions in respect of properties of the Company. if any. 21st September. 2007. 25th January. 1956 (the Act).

their attendance at Board Meetings during the year and at the last Annual General Meeting. 25th January. Ishaat Hussain (Chairman) Mr. (Mr. 3. name of Members and Chairman The Company has a Board Audit Committee comprising Non-Executive Independent Directors – Mr. S. A. Nasser Munjee Mr. All the Board members and senior management of the Company have affirmed compliance with their respective Code of Conduct as on 31st March.VOLTAS Annual Report 2007-2008 The names and categories of the Directors on the Board. N. A declaration to this effect. 2007. D. Kulkarni is a Chartered Accountant by qualification). signed by Managing Director of the Company is annexed hereto. D. S. Jhaveri Mr. N. The Managing Director. N. Kulkarni. N. The Business Heads and other operating people also attend the Meetings. 2007. 28 . the Chief Internal Auditor and the Statutory Auditors attend the meetings as Invitees. J. S. 2007. J. 25th October. the Executive Vice President (Finance). All members of the Board Audit Committee are financially literate and have relevant finance and/or audit exposure. D. 2007 Yes Number of Directorships in other public limited companies (excluding private/foreign companies) 13 Number of Committee positions held in other public companies# Chairman 4 Member 6 Mr. Audit Committee (a) Composition. 21st September. Senior management comprises the Division/Department/Functional Heads and the CFOs of the respective business clusters. Jhaveri is the Chairman of the Board Audit Committee. 2007. J. The Company Secretary acts as the Secretary of the Board Audit Committee. (b) Meetings and attendance during the year Seven Board Audit Committee Meetings were held during the financial year 2007-08 on the following dates: 10th May. 20th July. D. Nasser Munjee and Mr. Soni (Managing Director) Mr. 2008. Khurody 9 No 7 – 2 Mr. The Cost Auditor attends the meetings at which Cost Audit related issues are discussed. Tata 8 Yes 6 – – # Comprises Chairmanship/Membership in Board Audit Committee and Shareholders’/Investors’ Grievance Committee. when required. Ravi Kant Professional Not Independent Non-Executive Not Independent Executive Independent Non-Executive Independent Non-Executive Independent Non-Executive Professional Not Independent Non-Executive Professional Not Independent Non-Executive Professional Not Independent Non-Executive 10 10 4 9 10 9 Yes Yes Yes Yes Yes 2 14 13 3 5 – 4 4 2 – – 5 4 2 1 Mr. 2008 and 10th March. Mr. The Minutes of the Board Audit Committee Meetings are circulated and discussed at the Board Meetings. Jhaveri. Kulkarni Mr. (d) Code of Conduct The Board has adopted the Code of Conduct for the Directors and senior management of the Company and the same have been posted on the website of the Company. 2007. as also the number of Directorships and Committee Memberships held by them in other companies (as on the date of the Directors’ Report) are given below: Name of Directors Category Board Meetings Attended Attendance at the last AGM held on 6th August. 2008. 10th August. Noel N. Mr.

(iv) Significant adjustments made in the financial statements arising out of audit findings. Kulkarni Mr. with the management. (vii) Qualifications in the draft Audit Report. if any. the appointment. Jhaveri Mr. S. The Chairman of the Board Audit Committee attended the last Annual General Meeting of the Company. if any. the replacement or removal of the statutory auditor and the fixation of audit fees. 1956. l l l l To look into the reasons for substantial defaults in the payment to the depositors. of Meetings attended 7 7 5 (v) Compliance with listing and other legal requirements relating to financial statements. As defined in Clause 49 III of the Listing Agreement. debentureholders.The attendance of each member of the Committee is given below: Name of Members Mr. shareholders (in case of non-payment of declared dividends) and creditors. reappointment and. (ii) The Board Audit Committee also periodically reviews the progress on execution of major overseas projects and the risk ratings. However. with the management. including the structure of the internal audit department. in accounting policies and practices and reasons for the same. Discussion with statutory auditors before the audit commences. Subsidiary Companies The Company has six unlisted subsidiary companies. Nasser Munjee No. about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. staffing and seniority of the official heading the department. powers and role of Audit Committee are in accordance with Clause 49II(C). (vi) Disclosure of any related party transactions. 29 . l Carrying out any other function as is mentioned in the terms of reference of the Audit Committee. l Recommending to the Board. N. The quorum of Board Audit Committee Meetings is two members or one-third of the members. l Discussion with internal auditors on significant audit findings and follow up thereon. the (iii) Major accounting entries involving estimates based on the exercise of judgement by management. outstandings and inventory levels including the action plan for its realization and other specific areas as requested by the Board. the annual financial statements before submission to the Board for approval. Reviewing. the quarterly financial statements before submission to the Board for approval. if required. l Reviewing. performance of statutory and internal auditors. l Reviewing the adequacy of internal audit function. with the management. l Reviewing. with particular reference to: (i) Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s Report in terms of clause (2AA) of Section 217 of the Companies Act. none of the Indian subsidiary falls under the category of ‘material non-listed Indian subsidiary’. Changes. sufficient and credible. whichever is greater. l Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. adequacy of the internal control systems. (c) Terms of reference and role of Audit Committee The terms of reference. D. Approval of payment to statutory auditors for any other services rendered by them. The broad terms of reference includes the following: l Oversight of Company’s financial reporting process and disclosure of its financial information to ensure that the financial statement is correct. (D) and (E) of the Listing Agreement with the Stock Exchanges. l To review the functioning of the Whistle Blower mechanism. 4. reporting structure coverage and frequency of internal audit. of which two are Indian subsidiaries. J.

50 2.50 1.000 . at the AGM held on 27th August. During the financial year 2007-08. approved payment of commission to the Non-Executive Directors of the Company. 5. in Lakhs Lakhs Mr.50 7. Noel N. have been increased during the year 2007-08 and the same are within the permissible limits prescribed under the Companies Act. in Rs. N. if any. The Remuneration Committee also reviews and recommends to the Board. Khurody Mr.Rs. The recommendation of the Remuneration Committee is placed before the Board for its approval. D. Mr. 1956. Jhaveri and Mr.000 . Kulkarni is the Chairman of the Remuneration Committee. J. The Minutes of the Remuneration Committee Meetings are circulated and discussed at the Board Meetings.40 – – – 1990 – – – .Mr. S. Nasser Munjee No. 30 . D. In view of increase in the responsibilities of the Directors.40 1. Minutes of Board Meetings of these subsidiary companies and any significant transaction or arrangement entered into by the subsidiary company are reviewed by the Board. performance/ goals and achievements of the concerned managerial person.50 7. Kulkarni Mr. two meetings were held on 14th May. of Name of Directors Commission Sitting Fees Shares held paid in for 2007-08 2007-08* Rs. Nasser Munjee Mr. 1956 and approved by the shareholders. D. 2007. sitting fees for attending Board/Committee Meetings. J. Annual salary increment. N. Jhaveri Mr.000 . of Meetings attended 2 1 2 The remuneration of Non-Executive Directors. the responsibilities shouldered. 2007 and 27th June.50 1. N. The attendance of each member of the Committee is given below: Name of Members Mr. S.80 3.00 7.Rs. 2004. are periodically reviewed by Board Audit Committee. calculated in accordance with the provisions of the Act. The commission for the financial year 2007-08 will be distributed amongst the Non-Executive Directors in accordance with the directives given by the Board.50 7. The remuneration comprises salary. 2005. by way of commission is decided by the Board of Directors. Ravi Kant Mr.20. The sitting fees payable to the Non-Executive Directors for attending each Meeting are as under: Board Meeting Board Audit Committee Meeting Remuneration Committee Meeting Shareholders’/Investors’ Grievance Committee Meeting Remuneration to Directors The Directors’ remuneration paid/payable and sitting fees paid in 2007-08 and their shareholding in the Company as on date are given below: l Non-Executive Directors No. perquisites and allowances and incentive remuneration and/or commission. The Members had. D. Tata 10. Kulkarni. Ishaat Hussain Mr. N. S.50 7.000 (b) Remuneration Policy The remuneration of the Managing Director and Executive Director (if any) is reviewed by the Remuneration Committee based on criteria such as industry benchmarks. incentive remuneration or commission is decided by the Remuneration Committee within the overall ceilings prescribed under the Companies Act. the revision in pension payable to the retired managerial personnel.Rs. 5. The financial performance. J. of a sum not exceeding 1% per annum of the net profits of the Company. The business plans and annual targets of overseas subsidiaries are also discussed at the Board Meetings of the Company.VOLTAS Annual Report 2007-2008 financial statements of all subsidiary companies including investments made. Managerial Remuneration (a) Remuneration Committee The Remuneration Committee comprises 3 NonExecutive Independent Directors . for a period of five years commencing from 1st April.60 1. Jhaveri Mr. the Company’s performance. The Non-Executive Chairman of the Board attends the Meeting by invitation.20.Rs. S. under the Retirement Benefit Scheme adopted by the Company.10. Mr. * Payable in 2008-09. Nasser Munjee. Kulkarni Mr. D.00 1.50 7.

Tata. Soni. 17 during the financial year 2007-08 and the same have been suitably dealt with and closed. 2005 and 22nd April. Noel N. The number of transfers pending as on 31st March. The Minutes of the Shareholders/ Investors Grievance Committee Meetings are circulated and noted by the Directors at the Board Meetings. Other Committees In addition to the above Committees. 1956. M. Noel N. No severance fees is payable. (b) The Investment Committee comprising Mr. A. The Share Service Centre is prompt in attending to requests received from shareholders/ investors for transfer. Khurody and Mr. During the financial year 2007-08. The share registry work for physical as well as demat shares is carried out by the Company’s in-house Share Service Centre. V. The Shareholders/Investors Grievance Committee Meeting is attended by the Company Secretary and the Share Manager. Managing Director and Mr. apart from reviewing the operations of in-house Share Service Centre also looks into the redressal of shareholder and investor complaints. 3 Meetings were held. N. etc. Mr. 2007. S. * Payable in 2008-09. consolidation as well as for issue of duplicate certificates and completes the process and despatches the certificates. (c) Mr. 7. Malhotra as the Compliance Officer of the Company for monitoring the share transfer process and other related matters. Tata was constituted to discuss and guide the Management on strategic issues. Mr. compliances in respect of dividend payments and transfer of unclaimed amounts to the Investor Education and Protection Fund pursuant to the provisions of Section 205C of the Companies Act.00 Limited (CDSL) – the Depositories in respect of shares in demat form. 2008 was 7. in Lakhs) Name of Director Salary Perquisites and allowances including contribution to PF and Superannuation Fund 34. no Meeting of Investment Committee was held. D. 2007 and 25th October. l Remuneration of Managing Director (Rs. During the year under review. A. liaise with SEBI and other Regulatory authorities in the matter of investors complaints. Share Service Centre. NonExecutive Director is the Chairman of the Committee. A.The Company did not have any pecuniary relationship or transactions with the Non-Executive Directors during the year 2007-08 except as stated above. split. Kulkarni. Khilnani. The Company has established direct connectivity with National Securities Depository Limited (NSDL) and Central Depository Services (India) 31 . Soni does not hold any Equity Shares of the Company either singly or jointly. Committee of Board. General Manager – Taxation & Company Secretary and Mr. declarations. Nomination Committee and Ethics and Compliance Committee. Non-Executive Independent Director. Senior Manager. well within the stipulated time.00 80. Executive Vice President (Finance) and Chief Financial Officer of the Company considers and takes decisions for investment/deployment of surplus funds of the Company. P. Mr. The demat requests are also processed well within the stipulated time and requests for transfer of shares are processed weekly. A. Soni 27. V. Either party is entitled to terminate the agreement by giving not less than six months notice in writing to the other party. M. Mr.e. Malhotra. two Meetings were held on 20th April. During the year under review. (c) The Committee of Board comprising Mr. D. The Board has nominated Mr. (b) The Company has not introduced any stock options to its directors/employees. 2010. Investment Committee. Mr. H. to grant limited power of attorney to the officers of the Company and for authorizing executives for signing sales tax and excise forms. Miyajiwala. P. Ishaat Hussain. Board Committee. the Board has constituted certain other Committees i. Shareholders/Investors Grievance Committee The Shareholders/Investors Grievance Committee. Soni. The number of complaints received from SEBI/Stock Exchanges were very few. A. 6. Soni was reappointed as the Managing Director of the Company for a period between 25th September. Notes: (a) Mr. (a) The Board Committee comprising any two Directors is authorized to approve routine matters such as opening/closing and changes in the operation of bank accounts of the Company.05 Commission for 2007-08* Mr. A.

N. Details of transactions with related parties are placed before the Board Audit Committee on quarterly basis. Miyajiwala as the Compliance Officer to ensure due compliance of the aforesaid Code. 51st AGM – 3. there were no other related party transactions with the promoters. 19. l 52nd AGM – 7th August. on transactions are disclosed at Board Meetings and the interested Director does not participate in the discussion or vote on such transactions. M. besides the transactions reported in Notes to Accounts (Refer Point No. the same gets referred to the Ethics Counsellor and for Vice Presidents and above. – No Special Resolutions are proposed to be passed through postal ballot at the ensuing Annual General Meeting.m. Whistle Blower Policy has been communicated to the employees of the Company and its functioning is periodically reviewed by the Board Audit Committee. Mr. The related parties do not vote on the related party transactions. Nasser Munjee and Mr. no Meeting of Nomination Committee was held. D. There was no Extraordinary General Meeting held during the financial year 2007-08.VOLTAS Annual Report 2007-2008 (d) The Nomination Committee comprising Mr. as follows: Date of AGM Time No. The last three Annual General Meetings (AGMs) were held at Birla Matushri Sabhagar. During the year under review. no Meeting of Ethics and Compliance Committee was held.m. 2008. 1 53rd AGM – 6th August. The interest of Directors. if they pertain to employees below the Vice-President level. The Board of Directors have nominated Mr. from time to time.30 p. 8. Mumbai – 400 020.m. Khurody.40). Sir Vithaldas Thackersey Marg. Ishaat Hussain and Mr. directors. Tata has been constituted with the objective of identifying independent directors to be inducted to the Board and take steps to refresh the constitution of the Board. Disclosures l During the year under review. M. 29th August. N. particulars of Directors seeking reappointment are given in the Explanatory Statement annexed to the Notice of the Annual General Meeting to be held on 28th July. 2005 2 Special Resolutions passed Nature (1) Reappointment of Mr. management and subsidiaries that had a potential conflict with the interest of the Company at large. Soni as Managing Director (2) Place of keeping and inspection of Registers and Returns Alteration in the Articles of Association in view of subdivision of equity shares of the Company. 2006 3. the same would be referred to the Chairman of the Board Audit Committee. All transactions with related parties were in the normal course of business. (e) The Ethics and Compliance Committee comprising Mr. Garudachar. Nasser Munjee (as the Chairman). 1992. there were no strictures or penalties imposed by SEBI or the Stock Exchanges or any statutory authority for non-compliance of any matter related to capital markets. 32 . l Senior management has made the disclosure to the Board and confirmed that they had no material financial and commercial transactions that could have a potential conflict with the interest of the Company at large. if any. None l During the last three years. NEDs has been constituted to oversee the implementation of the Code of Conduct adopted by the Company for prevention of Insider Trading and Corporate Disclosure Practices formulated for Tata group companies in accordance with the SEBI (Prohibition of Insider Trading) Regulations. During the year under review. The mechanism provides for adequate safeguards against victimization of employees and provides a direct access to the Chairman of the Board Audit Committee on concerns relating to financial accounting matters. General Body Meetings 9. Mr. actual or suspected fraud or violation of Code of Conduct. Noel N. B.30 p. A. For all other concerns. 2007 3. Details of Directors seeking appointment/ reappointment as required under Clause 49 IV(G)(i) of the Listing Agreement entered into with Stock Exchanges As required under Clause 49 IV(G)(i).30 p. The Company has adopted a Whistle Blower Policy which enables the employees to report concerns about unethical behaviour. 10. General Manager (Corporate Communications) has been nominated as the Public Spokesperson of the Company for Corporate Disclosures.

By end October 2008 (d) Third Quarter Results .com. : Dividend would be paid on or after 29th July. shareholding pattern.in within the timeframe prescribed in this regard. Copies of Press Release are also sent to the Stock Exchanges. The Company did not raise funds through public/rights/preferential issues during the financial year 2007-08. l 11. 2009 . The Company has not adopted the Non-mandatory requirements in regard to maintenance of Non-Executive Chairman’s office and sending half–yearly financial results to the shareholders at their residence. l The Company has complied with the Mandatory requirements of Clause 49 of the Listing Agreement.NSE . 1st July. : Bombay Stock Exchange Limited. The Non-Executive Directors freely interact with the Management on information that may be required by them. the Company has followed the Accounting Standards as prescribed by the Central Government under the Companies (Accounting Standards) Rules.Before end June 2009  Date of Book closure : Tuesday. In line with the requirements of SEBI. the Company has constituted a Board Remuneration Committee. l The financial results.  Stock Code . This is reviewed by the Board to ensure that Executive Management controls risk through means of a properly defined framework. The Management also shares with the Board. Maharashtra Times and Dainik Mumbai Lakshyadeep in Marathi. official news releases and presentations. at Birla Matushri Sabhagar. etc. conference calls with the institutional investors or with the analysts are displayed on the Company’s website www. annual report. l The Company has laid down procedures for the risk assessment and minimization procedures. 19. time and venue : Monday. l The Managing Director and Executive Vice President (Finance) (CFO) have certified to the Board in accordance with Clause 49 V of the Listing Agreement pertaining to CEO/CFO certification for the financial year 2007-08. The Board Audit Committee has reviewed the MDA report for the financial year 2007-08. changes in relevant laws and regulations and its implication on the Company. are uploaded on the SEBI’s EDIFAR website www. 28th July. National Stock Exchange of India Limited. 28th July. adopted a Whistle Blower Policy and has unqualified financial statements.voltas.m. Mumbai .400 020. Secretarial Audit is carried out on a quarterly basis by a firm of practising Company Secretaries to confirm that the aggregate number of equity shares of the Company held in NSDL and CDSL and in physical form tally with the total number of issued/paid-up.ISIN Number for NSDL/CDSL : : : VOLTAS 500575 INE226A01021 33 .  Financial Calendar : (a) 1st April to 31st March (b) First Quarter Results . l  Dividend Payment date  Listing on Stock Exchange The Company has paid the listing fees to BSE and NSE for the year 2008-09.30 p. all the data related to quarterly financial results.l In the preparation of financial statements.BSE .sebiedifar. l As per the requirements of Clause 51 of the Listing Agreement. Means of Communication l The quarterly and half-yearly results are published in widely circulated newspapers: Business Standard. Management Discussion and Analysis Report (MDA) forms part of the Annual Report and includes discussions on various matters specified under Clause 49 IV(F) of the Listing Agreement. General Shareholders Information  AGM: Date. DNA and The Economic Times in English. Sir Vithaldas Thackersey Marg. 2008 at 3.By end July 2008 (c) Second Quarter Results .By end January 2009 (e) Results for the year ending 31st March. 2008 to Monday.nic. As regards Non-mandatory requirements. 2008. 2008 (both days inclusive). The performance of Non-Executive Directors is based on the contributions at Board/Committee Meetings as well as time spent on operational matters other than at the Meetings. l 12. 2006. listed and admitted capital of the Company.

00 8514942 13270378 20376054 28813401 15518811 12823478 16426607 11743341 6908656 10815715 8865206 6571957 7561.15 111.34 30069.25 199.70 150.1 each on the said exchanges is given hereunder: Bombay Stock Exchange Ltd. in Rs.47 25436.45 151. of Turnover High Low Shares Rs.50 136.49 42890.50 17246. (BSE) No.15 119.50 233.75 199.82 50947.95 149. Traded Lakhs Month BSE Sensex 2007 April May June July August September October November December 2008 January February March 13872 14544 14651 15551 15319 17291 19838 19363 20287 17649 17579 15644 96.90 261.47 17468.50 119.23 24512.95 166. Traded Lakhs National Stock Exchange of India Ltd.50 266.00 173.59 96.60 114.00 245.00 249.30 153.90 86.80 151.40 226.33 38061.98 94575.75 101.16 33936.83 83460.15 170.87 11368.65 21074.95 79.00 79.53 91141.00 183.70 216.40 89.96 34 .81 56935.75 136.70 105.40 85.68 50257.31 93291.70 86. Rs. In Rs. of Turnover High Low Shares Rs.35 226.00 217.83 21584.20 24527680 30114673 40738119 70690949 41973813 33161639 51604183 39200909 36769976 28153651 25210446 19437728 21649.10 114. Rs.95 261.10 12896.40 143.30 153.90 166. (NSE) No.40 170.40 267.00 233.13 29272.05 153.60 111.VOLTAS Annual Report 2007-2008 l Market Information Market price data-monthly high/low and trading volumes during the last financial year on the BSE/NSE depicting liquidity of the Company’s Equity Shares of Re.97 63980.15 173.42 19706.80 183.

09 0.00 l Category Tata Group of Companies FIIs Financial Institutions Mutual Funds and UTI Bodies Corporate NRIs Nationalised Banks Foreign Companies Directors Public Total l Shareholders Outstanding GDRs/ ADRs/ Warrants or any Convertible instruments. London Branch Nomura India Investment Fund Mother Fund General Insurance Corporation of India PCA India Infrastructure Equity Open Ltd. of equity shares held Upto 5000 5001 to 10000 10001 to 20000 20001 to 30000 30001 to 40000 40001 to 50000 50001 to 100000 100001 and above Total Physical Mode Electronic Mode l Registrar & Transfer Agent : In-house Voltas Limited Share Service Centre T. Shareholders holding shares in electronic mode should address all their correspondence to the respective Depository Participants.20 11. l l Dematerialisation of shares and liquidity Shareholding Pattern as on 31st March. A/c JM Mutual Fund .32 1.08 1.51 1.55 100.00 5. the amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of its transfer to the Unpaid Dividend Account of the Company is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government and no claim shall lie against the said Fund or the Company for the amount 35 . l Unclaimed Dividends Pursuant to Section 205C of the Companies Act.08 0. Ltd.55 2. Dist. of Shares held 78731780 25608246 10419862 9552330 7270469 6916850 5024580 4613679 4363080 4092969 3800000 3783818 3560470 3348459 3335162 % of Issued Share Capital 23.86 100. conversion date and likely impact on equity Plant locations l : The Company’s Plants are located at: (i) 2nd Pokhran Road.400 033 Tel : 66656511 Fax : 66656311 e-mail : shareservices@voltas. 2008 No. : The Company has not issued GDRs/ADRs/ Warrants or any Convertible instruments. Pantnagar Industrial Area. Merrill Lynch India Equities Fund (Mauritius) Ltd. : 94.79 7.I. Ltd.74 3. The New India Assurance Company Ltd.82 11.17 5. V. ABN Amro Bank N.01 1.E. 2008 No.52 1.01 Name of Shareholder Tata Sons Ltd. of shareholders 79152 1175 515 132 72 61 88 176 81371 21071 60300 No. 2008.83 2.1-5.03 0.24 1.14 1. B. of Shares held 39161959 8426544 7451634 3294561 2540618 2803095 6256073 260950256 330884740 17419165 313465575 % of Issued Share Capital 11.85 1. 1956. Life Insurance Corporation of India Citigroup Global Markets Mauritius Pvt.com Share Transfer System : The transfers are processed and approved by the Share Transfer Committee on a weekly basis.74 % of the share capital has been dematerialized as on 31st March. Thane 400 601 (ii) Shreenath Industrial Estate C Building. of Shares held 91171055 73443196 39116296 36958284 18230714 3590001 294550 89850 1990 67988804 330884740 % of Issued Share Capital 27.00 20.26 94.25 1.15 1. Kadam Marg Mumbai .09 1. Udham Singh Nagar. Near Dadra Check Post.89 78.00 0.197. Survey No.15 2.l Distribution of shareholding as on 31st March. Dadra 396 230 (iii) Plot Nos. Tata Investment Corporation Ltd. Sector 8 I.89 2. Rudrapur.39 1. Uttarakhand 263 145 holding more than 1% Equity Shares of the Company as on 31st March.20 2.55 22. JM Financial Mutual Fund – JM Contra Fund l Addresses for correspondence : Shareholders’ correspondence should be addressed to the Company’s Share Service Centre at the address mentioned aforesaid.77 0.74 l No. 2008 No. ICICI Prudential Life Insurance Co. CAAM Funds India JM Trustee Co.Basic The Oriental Insurance Company Ltd. Ltd.

quoting Folio numbers to the Company’s Share Service Centre to incorporate the same on the dividend warrants. For Deloitte Haskins & Sells Chartered Accountants Nalin M. Shah Partner Membership No. For details. 2001 th l Bank details for Electronic Shareholding While opening Accounts with Depository Participants (DPs). 15860 Mumbai. Date of declaration/ payment of dividend 8 August. Soni Managing Director AUDITORS’ CERTIFICATE To the Members of VOLTAS LIMITED We have examined the compliance of conditions of Corporate Governance by VOLTAS LIMITED (“the Company”) for the year ended on 31st March. adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. other than the one specified while opening the Depository Account. Members desirous of receiving dividend by direct electronic deposit through Electronic Clearing Service (ECS) Scheme of Reserve Bank of India to their bank accounts may authorize the Company with their ECS mandate. kindly write to the Company’s Share Service Centre. 2003 27th August. you may have given your Bank Account details. 15th May. In our opinion and to the best of our information and according to the explanations given to us. 2012 12 September. if not provided earlier. 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. 2008 affirmed compliance of their respective Codes of Conduct adopted by the Company and confirmation to that effect has been given by each of them. Members are requested to furnish complete details of their bank accounts including MICR codes of their Banks to their DPs. DECLARATION BY THE MANAGING DIRECTOR ON COMPLIANCE WITH THE CODE OF CONDUCT I hereby declare that all the Directors and Senior Management personnel have as on 31st March. names and addresses of the Bank. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements. their bank Account numbers. 2005 7 August. 15th May. Given below are the dates of declaration of dividend and corresponding dates when unclaimed dividends are due for transfer to IEPF. 2002 18th August. may notify their DPs about any change in bank account details. 2004 29th August. 2008 A. 2011 3rd October. 2007 11th September. 2013 th 6th August. 2008 th 12th August. which will be used by the Company for printing on dividend warrants for remittance of dividend. 2014 l Remittance of Dividend through ECS In order to provide protection against fraudulent encashment of dividend warrants. Shareholders are advised to claim the un-cashed dividends lying in the unpaid dividend accounts of the Company before the due date. Mumbai. 2008 as stipulated in Clause 49 of the Listing Agreements of the Company with the Stock Exchanges. 2006 th 17th September. Our examination was limited to procedures and implementation thereof. It is neither an audit nor an expression of opinion on the financial statements of the Company. the members are requested to provide. 2010 1st October. members who wish to receive dividend in a bank account. l Bank details for Physical Shareholding Dividend for the year 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 Due for transfer to the IEPF 13 September. However. The compliance of conditions of Corporate Governance is the responsiblity of the Management. 2009 23rd September.VOLTAS Annual Report 2007-2008 of dividend so transferred. 2008 36 .

2008. of the cash flows of the Company for the year ended on that date. in our opinion. proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the Qatar. 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. We have audited the attached Balance Sheet of VOLTAS LIMITED. These financial statements are the responsibility of the Company’s Management. the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to Section 211(3C) of the Companies Act. An audit also includes assessing the accounting principles used and significant estimates made by the Management. the Balance Sheet. 15th May. 1956. (c) 4. both annexed thereto. We conducted our audit in accordance with the auditing standards generally accepted in India.AUDITORS’ REPORT To the Members of Voltas Limited 1. Bahrain and UAE Branches audited by other auditors. 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet. 2008 37 . (ii) (vii) On the basis of the written representations received from the Directors as on 31st March. 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act. For Deloitte Haskins & Sells Chartered Accountants Nalin M. 2. the said accounts give the information required by the Companies Act. As required by the Companies (Auditor’s Report) Order. 2008. (b) 3. evidence supporting the amounts and disclosures in the financial statements. (iii) the reports on the accounts of the Qatar. Shah Partner Membership No. 15860 Mumbai. in which are incorporated the Returns from the Qatar. taken on record by the Board of Directors. Further to our comments in the Annexure referred to in paragraph 3 above. on a test basis. An audit includes examining. Bahrain and UAE Branches audited by other auditors. the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date. the Profit and Loss Account and the Cash flow Statement dealt with by this report are in agreement with the books of account and the audited Branch Returns. 2008 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act. and in the case of the Cash Flow Statement. (vi) in our opinion and to the best of our information and according to the explanations given to us. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. we report that: (i) 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. 1956. of the state of affairs of the Company as at 31st March. of the profit of the Company for the year ended on that date. 1956. (v) in our opinion. as at 31st March. (iv) the Balance Sheet. Bahrain and UAE Branches audited by other auditors have been forwarded to us and have been dealt with by us in preparing this report. in the case of the Profit and Loss Account. we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. as well as evaluating the overall financial statement presentation. we report that none of the Directors is disqualified as on 31st March. 2008.

(xx) of CARO are not applicable. During the course of our audit. Where each of such transaction is in excess of Rs. (xiv). Details of dues of income-tax. however. the inventories were physically verified during the year by the Management at reasonable intervals. the Company has complied with the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act. There were no undisputed amounts payable in respect of income-tax. the Central Government has not prescribed the maintenance of cost records for any other product of the Company. the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. employees’ state insurance. there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. To the best of our knowledge and according to the information and explanations given to us. (v) In our opinion and according to the information and explanations given to us. in our opinion.VOLTAS Annual Report 2007-2008 ANNEXURE TO THE AUDITORS’ REPORT (Referred to in paragraph 3 of our report of even date) (i) The nature of the Company’s business/activities during the year is such that. the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. (xviii). 1956 in respect of air conditioning system and refrigerators and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. the Company has not accepted any deposits from the public during the year. In our opinion and according to the information and explanations given to us. firms or other parties listed in the Register maintained under Section 301 of the Companies Act. secured or unsecured. wealth tax.5 lakhs in respect of any party. provides for physical verification of all the fixed assets at reasonable intervals. In respect of its fixed assets: (a) The Company has maintained proper records showing full particulars. 1956. which have been paid subsequently. (xii). including provident fund. (b) (vi) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the (c) 38 . to/from companies. cess and other material statutory dues applicable to it. According to the information and explanation given to us. (xix).1. no material discrepancies were noticed on such verification. income-tax. 1956. in our opinion. (ii) (b) (c) (vii) According to the information and explanations given to us. customs duty. As explained to us. excise duty.95 lakhs respectively. to the best of our knowledge and belief and according to the information and explanations given to us: (a) The particulars of contracts or arrangements referred to Section 301 that need to be entered in the Register maintained under the said Section have been so entered.60 lakhs and Rs. the Company has an adequate internal audit system commensurate with the size and the nature of its business. (viii) In our opinion. do not constitute a substantial part of the fixed assets of the Company and such disposal has. We have. the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time except in respect of certain purchases for which comparable data is not available and for which we are unable to comment. investor education and protection fund. In our opinion and according to the information and explanation given to us. cess and other material statutory dues in arrears as at 31st March. 1956. we have not observed any major weakness in such internal control system. excise duty. not affected the going concern status of the Company. which in our opinion. service tax. sales tax. 2008 for a period of more than six months from the date they became payable except for sales tax and service tax amounting to Rs. clauses (x). wealth tax. sales tax. In respect of unclaimed deposits. including quantitative details and situation of fixed assets. service tax and excise duty which have not been deposited as on (iii) In respect of its inventory: (a) (b) (c) (iv) The Company has neither granted nor taken any loans. (ix) 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.2. The fixed assets disposed off during the year. (xiii). not made a detailed examination of the records with a view to determining whether they are accurate or complete. (b) Companies Act. Some of the fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification. having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations. customs duty. (x) According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed dues.

the Company has not defaulted in the repayment of dues to banks. 2001-04. 1999-2004 1989-2006 1985-2005 1978-80. 2.58 625. Sales Tax Supreme Court High Courts Appellate Tribunals Commissioner Appeals Deputy Commissioner Appeals Assessing Authority 1993-2001 1988-2000. 2008 39 . the terms and conditions of the guarantees given by the Company for loans taken by others from banks are not prima facie prejudicial to the interests of the Company. (xii) In our opinion and according to the information and explanations given to us. 2006-07 567.32 754. (xiii) In our opinion and according to the information and explanations given to us.56 1964.52 20. For Deloitte Haskins & Sells Chartered Accountants Nalin M.54 1717. Income Tax Excise Duty High Court Supreme Court High Courts Customs. Shah Partner Membership No.98 67.95 5. 2008 on account of disputes are given below:- Particulars Forum where Dispute is pending Period to which the amount relates Amount involved (Rs.21 2017.28 174.52 469.42 (xi) In our opinion and according to the information and explanations given to us.66 4. 15860 Mumbai. (xiv) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet. Service Tax Customs.71 3.84 1.74 7. 1982-85. no fraud by the Company and no material fraud on the Company has been noticed or reported during the year. 1990-91 1993-96 1986-87 2001-02 1983-86 1975. Excise And Service Tax Appellate Tribunals (CESTAT) Commissioner of Central Excise (Appeals) Commissioners/Adjudicating Authority 1973-75. 2002-04 1986-98. 15th May.31st March. (xv) To the best of our knowledge and according to the information and explanations given to us. 2005-07 15. we report that funds raised on short-term basis have not been used during the year for long-term investment. the term loans have been applied for the purposes for which they were obtained. 1986-91. Excise and Service Tax Appellate Tribunals (CESTAT) Commissioner of Central Excise (Appeals) Commissioners/Adjudicating Authority 1998-2003 2001-06 1998-2003. 1993-2008 45. 1985-2005.in lakhs) 1.

83 34768. J.12 60958. 15th May.21 12383.20 9. INVESTMENTS DEFERRED TAX ASSET (NET) (See Note 11.63 2043.50 Ishaat Hussain A. Tata M. SECURED LOANS APPLICATION OF FUNDS 5. D.60 58598.19 46289.46 11505. Shah Partner Mumbai. LOANS AND ADVANCES 1.49 E 15949. Malhotra 40 .48 53832.62 For and on behalf of the Board Chairman Managing Director Directors In terms of our Report of even date attached. Cash and Bank Balances 4.88 122627. Schedule ‘P’) CURRENT ASSETS.98 F G H I 155972.39 12227. J J 121739. Loans and Advances LESS : CURRENT LIABILITIES AND PROVISIONS (A) Current Liabilities (B) Provisions NET CURRENT ASSETS TOTAL (For notes forming part of the Accounts see Schedule ’P’.62 38075. 2008 General Manager .31 20419.50 D 26302.80 43378.78 603. Interest accrued on Investments 5.70 14319. The Schedules referred to above form an integral part of the Accounts) Rupees in Lakhs Rupees in Lakhs A B 3306. For Deloitte Haskins & Sells Chartered Accountants Executive Vice President (Finance) Nalin M.07 3306.16 27520. 15th May. Jhaveri S. 7.74 23889. Kulkarni Ravi Kant N. Miyajiwala V. SHARE CAPITAL 2. P. D. TOTAL LOAN FUNDS 4.01 48250.68 14074. 2008 106033. Soni Nasser Munjee N.57 53169.95 50525.VOLTAS Annual Report 2007-2008 BALANCE SHEET AS AT 31ST MARCH. Inventories 2.78 16725. N. RESERVES AND SURPLUS 3. Khurody N.86 26792.16 46289.94 142159.06 2967.31 8214.65 1875. FIXED ASSETS GROSS BLOCK LESS : DEPRECIATION NET BLOCK CAPITAL WORK-IN-PROGRESS 6.88 89307.07 16926.02 14025.01 58598.19 10.78 3.02 C TOTAL 4766.72 16594. M.Taxation & Company Secretary Mumbai. 2008 As at 31-3-2007 Rupees in Lakhs Schedule SOURCES OF FUNDS SHAREHOLDERS FUNDS 1. Sundry Debtors 3.27 13741. 13813. 8.99 12987.01 47.

49 27766.95 (869. 409.43 (2781. Schedule ‘P’) Less : EXCISE DUTY NET SALES AND SERVICES OTHER INCOME COST OF SALES.18 6771. Soni Nasser Munjee N.00 21437.66 3167.PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH. D.50 14000.45 M N Nil 850.13) 1232. Malhotra 41 . Tata M.20 Lakhs (2006-07: Rs.62 16.94 759.61 4000.80 13963.46 2987.30 For and on behalf of the Board Chairman Managing Director Directors 11.34 17437.67 Rupees in Lakhs 2. 1 each (including Exceptional items) (in Rs.29 Lakhs)] – Provision for Taxation of Earlier Years Written Back – Provision for Deferred Tax – Provision for Wealth Tax – Provision for Fringe Benefit Tax PROFIT AFTER TAXATION BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR AMOUNT TRANSFERRED FROM FOREIGN PROJECTS RESERVE PROFIT AVAILABLE FOR APPROPRIATIONS APPROPRIATIONS : (a) GENERAL RESERVE (b) PROPOSED DIVIDEND (c) TAX ON DIVIDEND BALANCE CARRIED FORWARD Basic and diluted earnings per share of Re.07 229162.00 25086. 3. 12.49 30753. DEPRECIATION AND EXCEPTIONAL ITEMS FINANCIAL ITEMS DEPRECIATION ON FIXED ASSETS PROFIT BEFORE EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS PROFIT BEFORE TAXATION PROVISION FOR TAXATION – Provision for Current Tax [(Including Foreign Income Tax Rs.50 4000. 4. 2008 Ishaat Hussain A. 7.10 5860.00 325. 2008 General Manager .00 5.10 5022. J.35 3740.00 250. K L 304453. N.85 562. SALES AND SERVICES (See Note 12 and 37.33 4163. Miyajiwala V.40 6. 14. 6. 340.94 240055. M.00) 1356.39 344. P.00 32. 15th May.16 3071.22 2485.42 3308. SERVICES AND EXPENSES PROFIT BEFORE FINANCIAL ITEMS. Kulkarni Ravi Kant N. 15th May. Shah Partner Mumbai. Schedule ‘P’) (For notes forming part of the Accounts see Schedule ’P’. Khurody N.00 9917.71 28253.45 20836. 13. Jhaveri S.00 4466.29 Schedule 1. 15.00 279366.00 32. 10.61 13566.16) 110. 9.13 18608.00 3675.17 22283.) (See Note 17.16 19226. 8.Taxation & Company Secretary Mumbai. 2008 Year ended 31st March. D. For Deloitte Haskins & Sells Chartered Accountants Executive Vice President (Finance) Nalin M.00 260. 2007 Rupees in Lakhs 245078. The Schedules referred to above form an integral part of the Accounts) Rupees in Lakhs 308617. (467.95 8710.38 15512. In terms of our Report of even date attached. 5.

89 2006-2007 Rupees in Lakhs 22283.30 5904. Miyajiwala V.59 17.73 34582.66 (18326.73) (2138.77) (9791.73 Nil 373. 2008 A.83 562.74) 18701.59) (1000. J. Jhaveri S.64) 1930. D. 15th May.90 (1531. Shah Partner Mumbai.53 3082.61) Rupees in Lakhs 30753.00) (605.01 11781.57 (2447.35 166.57) (42. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Sale of Fixed Assets Proceeds from Surrender of Tenancy Rights Purchase of Investments Investment in Subsidiaries Sale of Investments Sale of Investments in Subsidiaries Interest received Income from Investments Inter Corporate Deposits and Loans including to Subsidiary Companies NET CASH FROM / (USED IN) INVESTING ACTIVITIES C.92 6093.54 21491.57 For and on behalf of the Board Chairman Managing Director Directors Ishaat Hussain A.86 6853. Soni Nasser Munjee N.82 204.77 14025.08 95. Tata M.66 0.Taxation & Company Secretary Mumbai.16) 10125.95 2556. M.58 358.53 758.53 45. P.57 2. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Share Capital (Calls in Arrears) Securities Premium (Calls in Arrears) Increase/(Decrease) in other Borrowings Repayment of Long Term Borrrowings Interest paid Decrease in unpaid Deposits Dividend paid including dividend tax NET CASH FROM / (USED IN) FINANCING ACTIVITIES NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AS AT 1-4-2007 (See Schedule H) CASH AND CASH EQUIVALENTS AS AT 31-3-2008 (See Schedule H) 0.81 188. Kulkarni Ravi Kant N.95 1356.80) Nil 101954.60 12342. For Deloitte Haskins & Sells Chartered Accountants Executive Vice President (Finance) Nalin M.34) (47.49 (100.78 (4468.99) 222.38 1133.77) 28895.12 40676.51 2877.09 14025.73 (1858.82 1312.95 970.35 Nil (863.24 0.12 13.49 (1134.VOLTAS Annual Report 2007-2008 CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH.97 139.87) (43. 2008 42 .48 7843.35 1232.14) (3846. D.80) 3346.19) 13495.15) 3248.19) (7806.01 27520. Malhotra In terms of our Report of even date attached.Adjustments for : Depreciation Provision for Contingencies Provision for Diminution in value of Investments Net Profit on Sale/Retirement of Fixed Assets (Profit)/Loss on Sale of Investments Interest paid (Net) Income from Investments Provision for Compensated Absences Provision for Gratuity Provision for Post Retiral Medical Benefits Cost of Voluntary Retirement Scheme Operating Profit before Working Capital changes Less .00) 4.55 (2752.18 (12707. N.71) (8.09) (2248.92 10863.87 1013.01) (4501.69) 13721.31 (13179.49) 350.99) 265.14) (2733.16 (2647.44) (7907.Adjustments for: (Increase)/Decrease in Inventories (Increase)/Decrease in Trade and Other Receivables (Increase)/Decrease in Loans and Advances (Decrease)/Increase in Advances from Customers (Decrease)/Increase in Trade Payables Cash generated from Operations Less: Taxes paid Voluntary Retirement /Pension Scheme Payments NET CASH FROM OPERATING ACTIVITIES B.54 (26765. CASH FLOW FROM OPERATING ACTIVITIES Rupees in Lakhs Net Profit before Taxation Add . 15th May.92 28.99 (10473. 2008 General Manager . Khurody N.17) (47.78 (115253.14) 445.95 5134.90) 3161.83) (4625.12 0.77 (8561.24 1288.

SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH.52 Rupees in Lakhs 1.19 43 . SCHEDULE ‘C’ : SECURED LOANS Rupees in Lakhs 4766.60 TOTAL 4766.19 8214.21 1.00 10000.48 7.08.57 624.70 125.85 2.89 Lakhs (31-3-2007 : Rs.00 As at 31-3-2007 Rupees in Lakhs 6000.70 4. CAPITAL RESERVE As per last Balance Sheet CAPITAL REDEMPTION RESERVE As per last Balance Sheet GENERAL RESERVE As per last Balance Sheet Add : Transferred from Profit and Loss Account Add / (Less) : Provision for Compensated Absences adjusted [Net of Deferred Tax of Rs.85 1.100 each TOTAL 2. Schedule ‘P’) 33.000 Equity Shares of Re.00 344.00 5860.62 43182.00. Schedule ‘P’) As at 31-3-2007 Rupees in Lakhs 8214.18 2.10) 29037. SECURITIES PREMIUM As per last Balance Sheet Add: Calls in Arrears received during the year As at 31-3-2007 Rupees in Lakhs 621.62 2.00 1.73.84.05 155.740 Equity Shares of Re. 409.00 4000. 2008 SCHEDULE ‘A’ : SHARE CAPITAL Rupees in Lakhs 6000. 29037. 6.00 250.00 825.40 50525.21 14000.07 1169.1 each Less: Calls in Arrears TOTAL 3308.52 3.00 5.00 16276.87 624.000 Redeemable Preference Shares of Rs. SUBSCRIBED AND CALLED-UP (See Note 2. 825.00. ISSUED.00 4000.83 1. 1 each 40.05 0.02 3306.00 575.00 10000.00.00 34768. AUTHORISED 60.42 (806. Schedule ‘P’) STAFF WELFARE RESERVE As per last Balance Sheet FOREIGN PROJECTS RESERVE As per last Balance Sheet Less : Transferred to Profit and Loss Account PROFIT AND LOSS ACCOUNT TOTAL 155. 125.60 LOANS FROM BANKS (See Note 4.95 3308.83 SCHEDULE ‘B’ : RESERVES AND SURPLUS Rupees in Lakhs 624.01 Lakhs)] (See Note 3.00 4000.89 13566.90 3306.00 145.

Furniture & Fittings 6.22 196.42 (7) Rupees in Lakhs Nil Nil 33. Plant & Machinery 5.79 53.1742.000 shares purchased during the year) Agro Foods Punjab Ltd.21 1461. United Arab Emirates Weathermaker Ltd. Simto Investment Company Ltd. Jebel Ali.78 307.87 26302.65 6.83) Nil Nil 783.52 Lakhs)] * Buildings include Gross Block Rs.50 1070.23 5938.31 266.22 1356.97 492.46 Lakh) being cost of shares and bonds in Co-operative Housing Societies. (1. Rs.50 485.82 3196.255.35 (6) Rupees in Lakhs 3.94 Nil 109.60 58.68) (12383.13.53 462.63 Additions Deductions As at 31 March 2008 (1+2-3) (2) Rupees in Lakhs Nil 567.01 137.60 226.79 Lakhs) and Accumulated Depreciation Rs.19 As at 31 March 2007 (1-5) (10) Rupees in Lakhs 310.09 (4) Rupees in Lakhs 312.441 13.69) (11505.98 89.21 15949. UAE VIL Overseas Enterprises B. ** Includes Rs.32 1090.74) (4318.99 (6229.46 Nil 111.71 Lakhs (31-3-2007: Rs 457.73 77. Buildings * ** 4 .70 77.39 (23889.92 Lakhs (31-3-2007: Rs.26 644.52 565. 10 10 100 565.10 6912.11) 1004.32 1201.33 5667.23 7773.000 9.29 10.22 (5) Rupees in Lakhs 2.47 Nil 2070. Software 312.92 Lakhs) which has been held for sale and the estimated realisable value is higher than the net book value. LONG TERM INVESTMENTS 1.00 203. 255.42 Rs.V.28 12753.55 6207.39 1159.48 Lakh ( 31-3-2007: Rs. The Netherlands Currency / Face Value Rupees in Lakhs As at 31-3-2007 Rupees Rupees in Lakhs in Lakhs 1.74 Up to 31 March 2007 DEPRECIATION For the On Year Deductions Up to 31 March 2008 (5+6-7) (8) Rupees in Lakhs 5.12 49.95 7086.0.29 10.00 204.46) 1875.08.84 208. Vehicles Intangible Assets : 7.53 11505.99) 6.0.75 12227.78 Previous Year (26975. Rs. (Beneficial rights transferred pending transfer of shares) Westerwork Engineers Ltd (Under Liquidation) Metrovol FZE.79 Lakhs (31-3-2007: Rs.28 1004.600 1 4.39 496.84 4736. TRADE INVESTMENTS Fully paid Equity Shares of Subsidiary Companies : UNQUOTED: Auto Aircon (India) Ltd.82 666.98 46.73 644.61.68 (3) Rupees in Lakhs Nil 0.20 265.27 9.80.20 265.75 39. Capital Work-in-Progress [Including advances against Capital Expenditure Rs.99 610. Leasehold Land 2.05 23889.74 0.21 28177.16 72. Abu Dhabi.635 Rs.78 307. Freehold Land 3. SCHEDULE ‘E’ : INVESTMENTS (at Cost) No.03 NET BLOCK As at 31 March 2008 (4-8) (9) Rupees in Lakhs 307.97 567.92 (3142.662.60 997.31 1672.44 Nil 269.30 399.48 577.49 12987.76 511.VOLTAS Annual Report 2007-2008 SCHEDULE ‘D’ : FIXED ASSETS (At Cost or Book Value Less Depreciation) GROSS BLOCK AT COST OR BOOK VALUE Particulars As at 31 March 2007 (1) Rupees in Lakhs 1.68 (14591.03 Nil 1835.21 1461.04 Nil 109.88 227.12 14074.89 1644.00. 100 AED 2000000 US $ 1 EURO 45.087 2.93 705.80 1470.52 12383. Manufacturing Rights & Technical Know-how 8.38) Nil Nil 634.662.43 1003.33 479.38 44 .55 8278.94 11648.86 603.92 303.000 14.78) 1875.49 (1232.

48 4. Rs. Industrial Estates Pvt.200 2. Rs. Ltd.90 7. 10 500.S.90 7.00 45 .6. Schedule ‘P’) UNQUOTED: Tata International Ltd. Naba Diganta Water Management Ltd.00 Nil 8. Rs. Rs. Rs. Rs.00 Nil 509. EURO Rs.00 4079.92 500.00 3.30 8.00 4078.) (Contd. QUOTED: Unit Trust of India .62 750 10 2 500 1.00 3.23 1382. Rs.37 140. 3.000 units sold during the year) Currency / Face Value Rupees in Lakhs As at 31-3-2007 Rupees Rupees in Lakhs in Lakhs 6.55 65.83.278 units purchased during the year) LICMF .478 units sold during the year) LICMF Liquid Plus Fund .337 24. Super Bazar Co-operative Stores Ltd.a.48 4.000 2. Tata Services Ltd.C. OTHER INVESTMENTS Fully paid Equity Shares : UNQUOTED: Voltas Employees Consumers Co-operative Society Ltd. Lalbuksh Voltas Engineering Services and Trading L. Rs.00.14 17.10 874. Rs. France Other fully paid Preference Shares Rallis India Ltd.500 4.08 –* –** 0.16 0.25 49. Rs.000 1. Rs.53 500.000 8.00.000 1.77 115.42 44. Rs.55 65. Reliance Industries Ltd.SCHEDULE ‘E’ : INVESTMENTS (at Cost. Premium Granites Ltd.640 5. Terrot GmbH.48 0.15.72 5706.05 164.91 600.59 26.278 50.48 0.72 5704.000 units purchased during the year) HDFC FMP .21. Rs.76 Rs.500 4.Floating Rate Fund -Dividend Plan (50. (See Note 5.440 6.75% Tax Free US 64 Bonds TOTAL LONG TERM INVESTMENTS CURRENT INVESTMENTS Units of Mutual Funds: UNQUOTED: LICMF .43 30.00. 10 10 10 10 Nil 3051. Lakshmi Ring Travellers (Coimbatore) Ltd.L.97 110.43 30.00. Universal Comfort Products Pvt.15. OMC Computers Ltd. US$ Rs. Muscat.59 26. Lakshmi Machine Works Ltd.999 3.59 164.585 Rs. Tata Industries Ltd.70.91.000 2.04.00 4.77 115. 10 10 10 10 100 0.00 4. Rs.220 3. Tata Projects Ltd.25 49.05. Brihat Trading Private Ltd.64.67.00. Saudi Arabia AVCO Marine S.333 12.15.) No.42 44.00 1. Rs.59 164.05 164.600 1.00.73 Nil Nil 1000.97 50.37 140.5% Cumulative Redeemable Preference Shares 2. .000 448 24 1.38.90D March 2007 (4) IP (1.00.14 17. 7.23 1382.910 Rs.000 Rs. RO SR EURO 10 10 10 10 1000 10 1000 1000 10 100 100 10 1 10 10 10 10 10 100 10 110. Rs. Agrotech Industries Ltd.20.480 22.000 Rs.20.03 93. Germany Rujuvalika Investments Ltd. Sultanate of Oman Saudi Ensas Company for Engineering Services WLL.Fixed Maturity Plan Series 32 (50.05. Other fully paid Equity Shares QUOTED: Lakshmi Automatic Loom Works Ltd. Tata Chemicals Ltd.03 93.91 600.08 –* –** 0. Rs.. Ltd. Rs.Daily Dividend Plan (3. Saraswat Co-operative Bank Ltd.10 874.

682 shares sold during the year) Hindustan Unilever Ltd. HDFC FMP .50 26844.Dividend (2.) No.00.03.00. Rs.63 13741.00 2500.06 972. Rs.525 shares sold during the year) TOTAL CURRENT INVESTMENTS TOTAL INVESTMENTS Less : PROVISION FOR DIMINUTION IN VALUE TOTAL * ** Cost Rs.000 1.671 2.01. Rs.VOLTAS Annual Report 2007-2008 SCHEDULE ‘E’ : INVESTMENTS (at Cost) (contd.00. (4.00 1500.50. Rs.88 22111.00 Nil 500. : Indian Rupees AED : United Arab Emirates Dirhams 46 .095 units sold during the year) DWS Fixed Term Fund Series 24 IP Growth DWS Quarterly Interval Fund .000 units purchased during the year) Reliance Fixed Horizon Fund III AP Series Templeton Floating Rate Income Fund Long Term Plan Super Institutional Option IP Dividend (2.36.000 Rs.00 Nil 50.000 1. 10 1 Nil 3.78.00 Nil 1002.00.00.00 1010. Rs.54.39 As at 31-3-2007 Rupees Rupees in Lakhs in Lakhs Nil 2500.00. Rs.04 1024.042 units purchased during the year) HSBC Fixed Term Series .00. Rs.000 units purchased during the year) Tata Fixed Horizon Fund Series 7 Plan B . Rs.00 Nil 2.00.934 units purchased during the year) JM Interval Fund Quarterly Plan 3 Institutional Dividend Plan (2.55 38.59 Nil 1000.00.00 1000.000 units purchased during the year) UTI Fixed Maturity Plan UTI Fixed Maturity Plan QFMP 0208 Institutional Dividend Plan Reinvestment (1.000 1.00 9056.00.000 Rs.Series 37 (1.69 SR : Saudi Riyal EURO : European Union Currency Abbreviations for Currencies : Rs. 20) Quoted : Cost : Market Value Unquoted : Cost US$ RO : : United States Dollar Omani Riyal 2.00 Nil 1000.000 2.475 Re.39 13743. 1.50 Nil 1000.934 Rs.01.00. Rs.22.05.35 10353.90D March 2008 VII (2) IP (2.55 Nil Nil 0.50.671 units purchased during the year) Kotak FMP 3M Series 28 .50.00.Dividend Plan (1.50.00.77 27817. 20 (31-3-2007 : Rs.98 26792.00 1000. 10 10 10 500.49.26 (1.Series I .00.934 units purchased during the year) UTI Fixed Maturity Plan HFMP 0308 I Institutional Dividend Plan Reinvestment (50.00.36.03.00 2500.00 1000.21 1000.042 50.75 18784.67 2500.53 1019.000 units sold during the year) ICICI Prudential Interval Fund II Quarterly Interval Plan D (50.16 14761.54.77 1017.00.QUOTED: Tata Motors Ltd. 15.000 2.000 units purchased during the year) Government Securities Other Securities .000 1.78.28 Rs. (9. Currency / Face Value 10 10 10 10 10 10 10 10 10 Rupees in Lakhs 2000.91 4.00. 10 10 2543.50.00.49.00 0. Rs.00.IP PRU ICICI FMP .00. 100 (31-3-2007 : Rs.934 Rs.100) Cost Rs.05.

455 2.Super Institutional Plan Daily Dividend JM Money Manager Fund Super Plus Plan Daily Dividend Kotak Flexi Debt scheme Daily Dividend Kotak Liquid (Institutional Premium) Daily Dividend Kotak Quarterly Interval Plan Series 3 Dividend LICMF .89.928 2.50.01.250 4.201 1.20.92.Daily Dividend DSP Merrill Lynch Liquidity Fund .244 2.152 1.Daily Dividend Tata Liquid Fund SHIP .519 1.323 — 1.62.54.99.90.51.37.40.21.201 — — 50.118 50.61.298 10.63.51.682 2.44.FMP Series 26 Dividend Plan Prudential ICICI Liquid .531 1.874 — 1.52.73.54.00.986 45.193 — — — — 1.88.49.50.07.54.SCHEDULE ‘E’ : INVESTMENTS (at Cost) (contd.316 5.74.44.50.45.26 HSBC Interval Fund Plan .884 5.Institutional .980 1.07.994 — — — — 9.554 — — 1.96.08.13.655 4.726 5.49.463 — 50.44.52.60.Super IP .51.44.Daily Dividend Standard Chartered Liquidity Manager Plus .32.51.424 4.1 Institutional Dividend HSBC Liquid Plus Institutional Plus Daily Dividend ICICI Prudential Flexible Income Plan Dividend Daily Reinvest Dividend ICICI Prudential Floating Rate Plan Daily Dividend Reinvest Dividend ING Liquid Plus Fund Institutional Daily Dividend ING Liquid Fund Institutional Daily Dividend Option JM High Liquidity Fund .776 — — — — — — — — — — — — — 1.Daily Dividend Tata FRF ST IP .210 44.) Note: Investments purchased and sold during the year Number of Units Mutual Funds Birla Cash Plus Institutional Premium Plan Daily Dividend Birla Floating Rate Fund Long Term Weekly Dividend Reinvestment Birla FMP Series 2 Quarterly Dividend Reinvestment Birla Sun Life Cash Manager .50.02.50.49.255 2.87.013 — — 49.331 2.Floating Rate Fund -Dividend Plan LICMF .50.354 98.00.562 82.65.52.22.363 50.48.42.746 — — 1.75.760 1.Institutional Daily Dividend Reinvestment DSP Merrill Lynch Liquid Plus .15.Daily Dividend Reliance Liquid Plus Fund Institutional Option Daily Dividend Reliance Liquidity Fund Daily Dividend Reinvestment Option Standard Chartered Liquidity Manager .Daily Dividend Tata Liquid Mutual Fund .18.82.466 5.02.Daily Dividend DWS Credit Opportunities Cash Fund Weekly Dividend Plan DWS Insta Cash Plus Fund Grindlays Floating Rate Fund LT Institutional Plan B Daily Dividend HDFC Cash Management Fund HDFC Liquid Fund Premium Plan HSBC Cash Fund Institutional Plus Daily Dividend HSBC Fixed Term Series .200 47 .337 1.22.10.46.04.Institutional .38.894 2.Fixed Maturity Plan Series 30 LICMF .05.861 3.599 50.440 4.Liquid Fund -Dividend Plan LICMF .54.46.95.14.IP Daily Dividend Reinvestment Birla Sun Life Liquid Plus .243 50.80.211 2.796 2.29.99.894 2.57.665 1.Daily Dividend Templeton Floating Rate Income Fund Long Term Plan Super Institutional Option Daily Dividend Templeton India Treasury Management Account UTI Liquid Cash Plan Institutional Daily Income 99.299 2006-07 2.

80 SCHEDULE ‘G’ : SUNDRY DEBTORS Rupees in Lakhs Dues in respect of 1. OTHER SALES (i) (ii) Over six months old Others 17126.17 274227.76 53169. Less: PROVISION FOR DOUBTFUL DEBTS TOTAL * Of the above debts (a) Fully secured .29 48234. a Director or a Member.31 43378.17 46709. at the lower of Cost (Less: Written off for obsolescence) and Realisable Value (b) Work-in-Progress.11 56583.92 303.93 3433.72 60958.92 161535.09 43074.VOLTAS Annual Report 2007-2008 SCHEDULE ‘F’ : INVENTORIES Rupees in Lakhs 1.08 33527.20 24282.76 56665. SALES ON DEFERRED TERMS OF PAYMENT (i) (ii) Over six months old Others 82.54 186111.01 26669. 3.08 Nil 102.57 8766.35 52940.25 24576.02 102.81 3496.53 56665. Due by Officers Maximum due by Officers at any time during the year Due by firms or Private companies respectively in which any Director of this company is a Partner.08 Rupees in Lakhs As at 31-3-2007 Rupees in Lakhs 1. considered good (b) Unsecured. Nil Nil Nil Nil Nil Nil 48 .67 14891.42 39457. STORES AT OR BELOW COST STOCK-IN-TRADE : (a) Raw Materials and Components.21 247558.25 46811.33 3496.30 9987. considered good (c) Considered doubtful TOTAL 228.92* 3.35 60938.39 2. Schedule ‘P’) Less: Amounts Invoiced (c) Finished Goods at the lower of Cost (Less: Written off for obsolescence) and Realisable Value TOTAL Rupees in Lakhs 19.39 Nil 82. (See Note 6.33 * 3433.50 48250.31 46811.85 As at 31-3-2007 Rupees in Lakhs 16. 2.16 13182. 2.

SCHEDULE ‘H’ : CASH AND BANK BALANCES Rupees in Lakhs 1. 2. 3. CASH IN HAND CHEQUES ON HAND BANK BALANCES WITH SCHEDULED BANKS (See Note 7, Schedule ‘P’) BANK BALANCES WITH NON-SCHEDULED BANKS (See Note 8, Schedule ‘P’) TOTAL SCHEDULE ‘I’ : LOANS AND ADVANCES Rupees in Lakhs 1. 2. ADVANCES TO SUBSIDIARY COMPANIES (See Note 9, Schedule ‘P’) ADVANCES RECOVERABLE IN CASH OR IN KIND OR FOR VALUE TO BE RECEIVED ADVANCE PAYMENT OF TAXES (NET) LOANS TO EMPLOYEES ADVANCE SHARE APPLICATION MONEY DEPOSITS WITH CUSTOMERS / OTHERS BALANCE WITH CUSTOMS, PORT TRUST, ETC. Less: PROVISION FOR DOUBTFUL ADVANCES TOTAL * Of the above advances (a) Fully secured, considered good (b) Unsecured, considered good (c) Considered doubtful TOTAL 1. 2. 3. Due by Officers Maximum due by Officers at any time during the year Due by firms or Private companies respectively in which any Director of this company is a Partner, a Director or a Member. 77.19 As at 31-3-2007 Rupees in Lakhs 255.25 84.01 2056.07 6571.73 As at 31-3-2007 Rupees in Lakhs 135.08 4067.96 3097.60

4.

18808.97 27520.78

6724.37 14025.01

11395.38 144.78 201.88 997.46 1892.13 351.60 15060.42* 740.43 14319.99

13388.16 2419.11 216.82 706.52 1332.47 474.18 18792.51 * 1865.53 16926.98

3. 4. 5. 6. 7. 8.

91.78 14228.21 740.43 15060.42 3.45 4.09 Nil

40.06 16886.92 1865.53 18792.51 4.09 4.70 Nil

49

VOLTAS
Annual Report 2007-2008

SCHEDULE ‘J’ : CURRENT LIABILITIES AND PROVISIONS Rupees in Lakhs (A) CURRENT LIABILITIES 1. ACCEPTANCES 2. SUNDRY CREDITORS (a) Due to Micro and Small Enterprises (See Note 10, Schedule ‘P’) (b) Others [ including subsidiaries: Rs. 394.73 Lakhs (31-3-2007: Rs.435.32 Lakhs)] 3. ADVANCE PAYMENTS AND DEPOSITS RECEIVED : (a) From Customers / Others (b) Against Unexpired Service Contracts OTHER LIABILITIES INTEREST ACCRUED BUT NOT DUE ON LOANS INVESTOR EDUCATION AND PROTECTION FUND AMOUNTS LIABLE TO BE CREDITED * (a) Unpaid Dividend (b) Unpaid Matured Deposits (c) Interest accrued and due on (b) above Rupees in Lakhs 7895.60 216.12 61193.64 61409.76 47256.62 1316.82 48573.44 3733.87 3.92 107.05 11.48 4.19 121739.31 3505.99 4466.94 759.16 3883.42 2103.78 949.22 2321.16 1908.59 521.62 20419.88 142159.19

As at 31-3-2007 Rupees in Lakhs 7636.51 Nil 51410.19 51410.19 26104.68 977.16 27081.84 3059.44 12.51 82.30 19.62 5.37 89307.78 2617.68 3308.85 562.34 2473.62 1972.32 1092.41 2182.04 2008.59 508.09 16725.94 106033.72

4. 5. 6.

TOTAL (A) (B) PROVISIONS 7. PROVISION FOR TAXATION (NET) 8. PROPOSED DIVIDEND 9. PROVISION FOR CORPORATE DIVIDEND TAX 10. PROVISION FOR TRADE GUARANTEES (See Note 10, Schedule ‘P’) 11. PROVISION FOR COMPENSATED ABSENCES 12. PROVISION FOR PENSION 13. PROVISION FOR GRATUITY 14. PROVISION FOR CONTINGENCIES (See Note 10, Schedule ‘P’) 15. PROVISION FOR POST RETIRAL MEDICAL BENEFITS TOTAL (B) TOTAL (A) + (B)

* These figures reflects the position as at 31st March, 2008. The actual amount to be the transferred to the Investor Education and Protection Fund in this respect shall be determined on the due dates.

SCHEDULES FORMING PART OFTHE PROFIT AND LOSS ACCOUNT FORTHEYEAR ENDED 31ST MARCH, 2008
SCHEDULE ‘K’ : OTHER INCOME Year ended 31st March, 2007 Rupees in Lakhs 1474.46 56.94 0.10 1408.68 130.89 3071.07

Rupees in Lakhs 1. 2. 3. 4. 5. Miscellaneous Income Profit / (Loss) on Sale/Retirement of Fixed Assets (Net) [including Capital Surplus of Rs.Nil (2006-07 : Rs. 11.47 Lakhs)] Profit on Sale of Non-Trade Current Investments (Net) Rent Received [Tax deducted at source: Rs 459.40 Lakhs (2006-07 : Rs 303.97 Lakhs)] Adjustment in respect of previous years (Net) (See Note 13, Schedule ‘P’) TOTAL 1127.05 Nil 47.99 1991.96 Nil 3167.00

50

SCHEDULE ‘L’ : COST OF SALES, SERVICES AND EXPENSES Year ended 31st March, 2007 Rupees in Lakhs

Rupees in Lakhs 1. Stock-in-Trade per 1-4-2007 [including Work-in-Progress : Rs. 186111.92 Lakhs (1-4-2006 : Rs. 101656.99 Lakhs)] Purchases and cost of jobs, manufacture and services Stock-in-Trade per 31-3-2008 [including Work-in-Progress : Rs.274227.21 Lakhs (31-3-2007 : Rs. 186111.92 Lakhs)] Cost of Sales and Services (1 + 2 - 3 ) Staff Expenses (a) Salaries,Wages and Bonus (b) Company’s contribution to Provident Funds and other Funds (c) Provision for Gratuity (d) Welfare Expenses Forwarding Charges (Net) (See Note 14, Schedule ‘P’) Commission other than to Sole Selling Agents under Section 294 of the Companies Act, 1956 Advertising (Net) Rent paid Less: Rent recovered Rates and Taxes Insurance Stores Consumed Power Repairs to Buildings Repairs to Plant and Machinery Travelling and Conveyance Stationery, Postage, Telex and Telephone Auditors’ Remuneration : (a) Audit fees including reimbursement towards expenses Rs.1.68 Lakhs (2006-07 : Rs. 0.93 Lakh) (b) In Other capacity (See Note 23, Schedule ‘P’) Audit fees payable to Branch Auditors (See Note 23, Schedule ‘P’) Audit fees payable to Cost Auditors Legal and Professional charges (See Note 14, Schedule ‘P’) Other expenses (See Note 14, Schedule ‘P’) Bad and Doubtful Debts / Advances Donations and Charities Net Loss on Sale of Fixed Assets [including Capital Surplus of Rs. 1.08 Lakhs (2006-07 : Rs. Nil)] TOTAL

Rupees in Lakhs

2. 3.

209769.75 322234.74

120281.78 270564.90

4. 5.

308496.73 223507.76 24379.50 1640.16 320.30 1345.31 27685.27 1696.72 4388.00 1250.76 1791.04 4.97 1786.07 148.67 521.96 501.04 278.85 167.89 419.05 3868.76 1432.79

209769.75 181076.93 20863.09 866.94 603.22 1674.33 24007.58 1394.38 2343.27 710.57 1555.74 13.70 1542.04 128.77 521.05 354.15 305.30 82.36 354.67 3442.37 1386.30

6. 7. 8. 9.

10. 11. 12. 13. 14. 15. 16. 17. 18.

46.68 48.84 95.52 24.09 1.12 809.30 10729.46 (63.41) 40.31 76.73
279366.71

19. 20. 21. 22. 23. 24. 25.

45.93 42.74 88.67 22.88 0.23 1175.69 8637.91 1566.96 20.72 Nil 229162.80

51

67 11. 2821.38 1133. Schedule ‘P’) Factory Closure Cost ( See Note 16. 6.85 1134.49 780. 101.81 Lakhs )] (a) (b) (c) (d) Dividend from Subsidiary companies Trade Investments (Long Term) Other Investments (Long Term) Other Investments (Current) TOTAL 59. Provision for diminution in value of Investments Cost of Voluntary Retirement Scheme Provision for Doubtful Advances (Net) Provision for Contingencies (Net) (See Note 10.VOLTAS Annual Report 2007-2008 SCHEDULE “M” : FINANCIAL ITEMS Year ended 31st March.55 45. 5.17 52 .83 Lakhs)] Less: Interest received (a) in respect of sales on deferred payment terms and other accounts-Gross [Tax deducted at source Rs.77 246. Nil (2006-07 : Rs. Schedule ‘P’) (b) On fixed deposits with Banks 115.86 330. 3.59) 2987.25 254. Schedule ‘P’) TOTAL 4. On fixed loans On other accounts [Net of write back of Rs.45 956.45 265. Schedule ‘P’) Revision in Estimated Gratuity Liability at the beginning of the year ( See Note 16.87) (100. 2007 Rupees in Lakhs 193.95 Rupees in Lakhs 1. Profit on Sale of Property / Transfer of Development Rights/ Surrender of Tenancy Rights [ Including Capital Surplus Rs. 7.96 7806.24 10054. 2. 2247.94 732.55 175.96 Lakhs)] Profit on Sale of Trade Investments (Net) 2828.79 595.81 Lakhs (2006-07 : Rs.11 91. 12.00) Nil Nil (158.49 (869. Interest Paid (a) (b) 2.90 214. 2007 Rupees in Lakhs 2247. Nil (2006-07 : Rs.00) 1674.68 773.90 Nil 2828.23 202.90 Less : 3. 8.14) 3.73 (108.09 (47.49 Year ended 31st March. 8. 4.03 6771.20 11.76 2733.99 (2781.87 420.90 358.19 809.13) SCHEDULE ‘N’ : EXCEPTIONAL ITEMS Rupees in Lakhs 1.16 539. Less : Income from Investments [Tax deducted at source Rs.59 752.71 3283.07 Rupees in Lakhs 577.22 Lakhs)] (See Note 15.12 Lakhs (2006-07: Rs.20 17.

75 3.00 55. 2007 Rupees in Lakhs 1. Add: Rupees in Lakhs 30753.08 47. including benefits in cash or in kind (See Note below) (b) Provision for Diminution in value of Investments (c) Directors’ Sitting fees 196.76 55.20 213.47 7806. 280.18 30967. Profit before Taxation as per Profit and Loss Account 2.00 2828.00 53 . 1. Less: 22452.99 32.58 Lakhs.00 80.97 28057.00 35.35 (a) Managerial Remuneration.SCHEDULE “O” : COMPUTATION OF NET PROFIT IN ACCORDANCE WITH SECTIONS 198 AND 309(5) OF THE COMPANIES ACT.15 169. 1956 Year ended 31st March. restricted to Commission to Wholetime Director Note : The above excludes retirement benefits relating to former Wholetme Directors.53 (a) Capital Surplus on Sale / Retirement of Fixed Assets (b) Profit on Sale of Investments (Net) (c) Wealth Tax (d) Profit on Sale of property / Transfer of Development Rights /Surrender of Tenancy Rights Net Profit for Directors’ Commission referred to below: Commission to Directors (other than Wholetime Director) at 1% of the Net Profit : Rs.13 17.90 7.80 144.55 13.00 2247.95 Rupees in Lakhs 22283.78 10097.34 32.05 4.77 12354.96 2909.90 11.

The revenue from maintenance contracts is recognised on accrual basis and advance received in respect of future period is accounted for as Unexpired Service Revenue. 1956. (b) Sales and services are accounted on accrual basis when the sale of goods or services is completed. 1956. except Depreciation on furniture and fittings. (c) Revenue from long-term contracts. (vi) FIXED ASSETS Fixed assets are stated at cost less accumulated depreciation. is recognised under the percentage of completion method by reference to the stage of completion of the contract activity. which has been provided on the Written Down Value Basis at the rates prescribed in Schedule XIV to the Companies Act. (d) Long-Term Annual Maintenance Contracts : 54 . 2008 1. Manufacturing Rights and Technical Know–how have been amortised over 72 months and Software is amortised over 60 months. Consignment sales are excluded from sales and services. In case of Mining Equipment. The preparation of the accounts requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including the contingent liabilities) and the reported income and expenses during the reporting period. The stage of completion is measured by calculating the proportion that costs incurred to date bear to the estimated total costs of a contract. where the outcome can be estimated reliably.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. Further results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. 1956. (iv) DEPRECIATION / AMORTISATION Depreciation on all fixed assets has been provided on the Straight Line Basis at the rates prescribed in Schedule XIV to the Companies Act. Income and Expenditure of the Joint Venture Operations which are accounted on the basis of the audited accounts on line-by-line basis with similar items in the Company’s accounts to the extent of the participating interest of the Company as per the Joint Venture Agreements. 2006 of the Companies Act. Intangible assets are amortised on the Straight Line Basis over their useful life. as repairs and maintenance of such machineries depends on its utilisation and wear and tear which varies from year to year. (v) PROVISION FOR TRADE GUARANTEES Provision for estimated costs to be incurred in providing warranty services is made in the accounts in the year in which goods are sold or a long term contract is completed. value added tax and works contract tax but include excise duty. SIGNIFICANT ACCOUNTING POLICIES (i) The accounts are prepared on historical cost convention on accrual basis of accounting and comply with the Accounting Standards as notified under the Companies (Accounting Standards) Rules. but commission earned on such sales is accounted for as part of sales and services. The excess of revenue over cost is deferred and accounted for as “Unexpired Service Revenue”. When the current estimate of total costs and revenue is a loss. (iii) JOINT VENTURES The accounts of the Company reflect its share of the Assets. In case the actual cost incurred is higher than the billings. pertaining to the period upto the date of capitalisation is added to the cost of the assets. such cost is accounted for immediately. Liabilities. The Management believes that the estimates used in preparation of the accounts are prudent and reasonable. Premium paid on Leasehold Land is amortised over the period of the lease. Interest on borrowed money. the revenue from such contracts is recognised in proportion to the cost actually incurred during the year in terms of total cost after completion of such contracts. provision is made for the entire loss on the contract irrespective of the amount of work done. octroi duty and receiving / installation charges. (ii) SALES AND SERVICES (a) Sales exclude sales tax. allocated to and utilised for qualifying fixed assets. Own manufactured goods are capitalised at cost excluding interest but including excise duty net of CENVAT.

SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2008 (contd.)
Assets acquired under finance leases are recognised at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the outstanding liability. The finance charge is allocated to periods during the leased term at a constant periodic rate of interest on the remaining balance of the liability. (vii) INTANGIBLE ASSETS Intangible assets are stated at cost less accumulated amortisation. (viii) IMPAIRMENT OF ASSETS The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment of assets. If any indication of such impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in prior accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised. (ix) PROVISIONS AND CONTINGENCIES A provision is recognised when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in Notes to Accounts. (x) INVESTMENTS Long term investments are carried at cost less provision for any diminution other than temporary, in the value of such investments. Current investments are carried at the lower of cost and fair value. (xi) INVENTORIES Inventories including Work-in-Progress (other than Construction Contracts) are valued at cost or realisable value, whichever is lower, cost being worked out on weighted average basis. Cost includes all charges for bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. With regard to Construction Contracts, Work-in-Progress includes profits / losses to the extent recognised. (xii) TAXES ON INCOME Current Tax is the amount of the tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred Tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realise such losses. Other Deferred Tax Assets are recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets. (xiii) FOREIGN EXCHANGE TRANSACTIONS / TRANSLATIONS (a) The foreign branches of the Company have been classified as “integral foreign operations”. Revenue transactions (other than depreciation) of the foreign branches are incorporated in the Company’s accounts at the average exchange rate during the year, fixed assets are incorporated at the average rate of the year of acquisition and current assets and liabilities are translated at the rate of exchange prevailing on the date of the Balance Sheet. Depreciation is translated at the average rate applicable to fixed assets.

(b) Monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the difference in translation and realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss Account. In respect of transactions covered by foreign exchange contracts, the difference between the contract rate and the spot rate on the date of the transaction is charged to the Profit and Loss Account over the period of the contract.

55

VOLTAS
Annual Report 2007-2008

SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2008 (contd.)
(xiv) ACCOUNTING FOR VOLUNTARY RETIREMENT SCHEMES (a) The cost of Voluntary Retirement Schemes / Retrenchment Compensation including ex-gratia and additional gratuity liability arising therefrom are charged to the Profit and Loss Account in the month of separation of employees.

(b) The Present Value of future payments to employees opting for Early Separation Scheme (ESS) and the additional gratuity liability arising therefrom are charged to the Profit and Loss Account in the month of separation of employees. (xv) PREOPERATIVE EXPENSES OF NEW PROJECTS Directly identifiable preoperative expenses of new projects of capital nature under implementation are carried forward under Capital Work-in-Progress, pending capitalisation. (xvi) EMPLOYEE BENEFITS (i) In respect of employees abroad : The cost of retiral benefits such as Gratuity and Leave Encashment are accounted on accrual basis and in accordance with local laws of the respective countries. (ii) In respect of employees in India : (a) Defined Contribution Plan Contribution to Superannuation Fund, a defined contribution scheme, is made at pre-determined rates to the Superannuation Fund Trust and is charged to the Profit and Loss Account. There are no other obligations other than the contribution payable to the Superannuation Fund Trust. (b) Defined Benefit Plans (i) The Company’s liabilities towards gratuity and post retirement medical benefit schemes are determined using the projected unit cost method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past services are recognised on a straight line basis over the average period until the amended benefits become vested. Actuarial gains and losses are recognised immediately in the Profit and Loss Account as income or expense. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Balance Sheet date on Government bonds where the currency and terms of the Government bonds are consistent with the currency and estimated terms of the defined benefit obligation. The Company’s Contribution to recognised Provident Fund paid / payable during the year is recognised in the Profit and Loss Account. The shortfall, if any, between the return guaranteed by the statute and actual earnings of the Fund is provided for by the Company and contributed to the Fund.

(ii)

(c)

Other Benefits The Company has a scheme for compensated absences for employees, the liability for which is determined on the basis of an actuarial valuation carried out at the end of the year.

(xvii) SEGMENT REPORTING The accounting policies used in the preparation of the financial statements of the Company are also applied for Segment Reporting. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under “Unallocated income / expenses”. 2. SHARE CAPITAL Equity Share Capital includes : (a) 9,76,61,300 shares of Re. 1 each allotted as fully paid bonus shares by capitalising Rs. 80.82 Lakhs out of the Securities Premium Account, Rs. 100.00 Lakhs from Capital Reserve and Rs. 795.79 Lakhs out of General Reserve.

(b) 1,77,29,040 shares of Re. 1 each allotted to the erstwhile shareholders of Tata-Merlin & Gerin Ltd. (TMG), The National Electrical Industries Ltd. (NEI), Volrho Ltd., Wandleside National Conductors Ltd. (WNC) and Hyderabad Allwyn Ltd. (HAL) consequent upon the amalgamation of these companies with the Company. (c) 11,97,84,000 shares of Re. 1 each allotted to the holders of Convertible Part `A’ of Rs. 60 of the 14% Secured Redeemable Partly Convertible Debentures 1992-99 on compulsory conversion thereof into equity shares.

56

SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2008 (contd.)
3. GENERAL RESERVE Consequent to the Accounting Standard 15 “Employee Benefits” (Revised AS-15) notified under the Companies (Accounting Standards) Rules, 2006, the net difference of Rs. Nil (2006-2007 : Rs. 487.99 Lakhs net of tax Rs. 247.59 Lakhs) and Rs. Nil (2006-2007 : Rs. 318.11 Lakhs net of tax Rs. 161.42 Lakhs) between the liability in respect of compensated absences and post retirement medical benefits, respectively existing on the date of adoption 1st April 2006, and the liability that would have been recognised at the same date under the previous accounting policy has been adjusted against the opening balance in the General Reserve. In the previous year, provision for compensated absences was made on accrual basis. On the basis of a clarification issued by the Institute of Chartered Accountants of India, the opening provision for compensated absences was recomputed on an acturial basis and the resultant differences of Rs. 145.62 Lakhs (net of tax of Rs.73.89 Lakhs) has been credited to General Reserve. 4. SECURED LOANS – FROM BANKS As at 31–3–2007 Rupees in Lakhs 3000.00

Nature of Security (a) (b) Loan from Exim Bank (Deposit of title deeds of certain immovable properties of the Company) Cash Credit from Banks Secured against assignment of contract dues and lien on Term Deposits

Rupees in Lakhs 2000.00

2766.60 4766.60

5214.19 8214.19

5.

INVESTMENTS (a) Under a loan agreement for Rs. 60 Lakhs (fully drawn and outstanding) entered into between Agro Foods Punjab Ltd. (AFPL) and the Punjab State Industrial Development Corporation Ltd. (PSIDC), the Company has given an undertaking to PSIDC that it will not dispose off its shares in AFPL till the monies under the said loan agreement between PSIDC and AFPL remain due and payable by AFPL to PSIDC. During 1998-99, the Company had transferred its beneficial rights in the shares of AFPL. In respect of the Company’s investment in 2640 equity shares of Reliance Industries Ltd., there is an Injunction Order passed by the Court in Kanpur restraining the transfer of these shares. The share certificates are, however, in the possession of the Company. Pending disposal of the case, dividend on these shares has not been recognised.

(b)

6.

INVENTORIES – WORK-IN-PROGRESS, AT COST In respect of long term Construction Contracts which are in progress as at the year end: As at 31–3–2007 Rupees in Lakhs 177965.61 14161.99 3759.64 23545.52 6871.04

Rupees in Lakhs Aggregate amount of costs incurred and recognised profits (less recognised losses) upto 31st March, 2008 for all the contracts in progress Advances received for such contracts in progress The amount of retentions due for such contracts The gross amount due from customers for such contracts The gross amount due to customers for such contracts 269492.66 26067.40 7428.74 28850.11 9617.19

57

1101.63 Lakhs (2006-2007 : Rs.23 107. CASH AND BANK BALANCES – BANK BALANCES WITH SCHEDULED BANKS As at 31-3-2007 Rupees in Lakhs (a) On Current Accounts 5967. 3572.A.E.44 Lakhs)] 32. 1576. Qatar [Maximum balance during the year : Rs.53 Lakhs (2006-2007 : Rs. 3286. 757. U. U.94 Lakhs)] (iv) HSBC Bank Middle East. 3395.30 Nil 165.63 Rupees in Lakhs (a) ON CURRENT ACCOUNTS (i) Union National Bank.65 Lakhs)] 560.03 58 .59 218. [Maximum balance during the year : Rs.A.45 110.83 1675. Qatar [Maximum balance during the year : Rs.34 (ii) 652. 243.63 604.79 (vi) Doha Bank. [Maximum balance during the year : Rs. 1388.E. 4425. Singapore [Maximum balance during the year : Rs.A.95 Lakhs (2006-2007 : Rs. 3104.50 268. Nil)] 543. Abu Dhabi.05 Lakhs (2006-2007 : Rs. Qatar [Maximum balance during the year : Rs.E.89 Lakhs)] (v) Commercial Bank of Qatar. 2008 (contd.58 527. Nil)] (x) Standard Chartered Bank.E.E.41 Lakhs (2006-2007 : Rs. Abu Dhabi.26 Lakhs (2006-2007 : Rs.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.50 216.60 8. U. Bahrain [Maximum balance during the year : Rs. U.94 Nil 2463.44 145. U. CASH AND BANK BALANCES – BANK BALANCES WITH NON-SCHEDULED BANKS As at 31-3-2007 Rupees in Lakhs 414.59 Lakhs)] Emirates Bank International.10 3097.02 Lakhs (2006-2007 : Rs.) 7. 1080.96 128.36 Lakhs (2006-2007 : Rs. Abu Dhabi.36 138.10 6571.50 (iii) HSBC Bank Middle East. [Maximum balance during the year : Rs. 265. 4618. 607. 1106. Nil)] (ix) First Gulf Bank. 11865. [Maximum balance during the year : Rs.60 Nil 1.A.71 39.98 Lakhs)] (vii) HSBC Bank Middle East.73 (b) On Fixed Deposit Accounts Rupees in Lakhs 2881. [Maximum balance during the year : Rs. 4548.94 82.A.61 Lakhs (2006-2007 : Rs.60 Lakhs)] (viii) Abu Dhabi Commercial Bank. Dubai.76 Lakhs (2006-2007 : Rs.

40 Nil 177.75 Nil As at 31-3-2007 Rupees in Lakhs 77.27 Lakhs)] (iv) HSBC Bank Middle East.23 Lakhs (2006–2007 : Rs.00 (vi) Doha Bank. Qatar [Maximum balance during the year : Rs.40 Nil 177.A.83 Lakhs)] (viii) First Gulf Bank.11123. U.E.37 TOTAL 9.4332.62 Lakhs (2006–2007 : Rs.44 11.10 Nil Nil 0.62 (ii) 66.SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.23 Lakhs (2006–2007 : Rs.92 Lakhs)] 56. Rupees in Lakhs 77. 18808.1625. 61.10 0.1472.69 Lakhs (2006–2007 : Rs. Abu Dhabi.. 4 and 5 above to subsidiaries fall under the category of “Loans and Advances in nature of Loans where there is no repayment schedule and no interest is payable”.10 0. 59 .75 Nil Note : Loans and Advances shown in 1. [Maximum balance during the year : Rs.22 2014. Dubai. Abu Dhabi.1613.V.13 Lakhs (2006–2007 : Rs.20 542.48 313.E. 2008 (contd. etc.E.34 188.08 Lakhs (2006–2007 : Rs.25 3195. [Maximum balance during the year : Rs. 2.81.00 Lakhs (2006–2007 : Rs. [Maximum balance during the year : Rs. (upto 22-3-2007) Weathermaker Ltd.13 (iii) Emirates Bank International.1211. 1.A.16 1447. (b) ON FIXED DEPOSIT ACCOUNTS (i) Abu Dhabi Commercial Bank.00 Nil 478.14 10055.10 0. U. 4. [Maximum balance during the year : Rs.09 Nil Rupees in Lakhs 77. 243.E.72 Sr.Nil)] 1767.97 Maximum Balance during the year As at 31-3-2007 Rupees in Lakhs 77.50 Lakhs)] (v) Commercial Bank of Qatar. 2. VIL Overseas Enterprises B.50 16345.94 956.68 Lakhs)] (vii) HSBC Bank Middle East. LOANS AND ADVANCES Loans and Advances in the nature of Loans given to Subsidiaries and Associates. Qatar [Maximum balance during the year : Rs. Qatar [Maximum balance during the year : Rs.34 6724. Metrovol FZE Simtools Ltd.E.70 90.46 81.91 Lakhs)] 661.1634.A.A. U.42 As at 31-3-2007 Rupees in Lakhs 61.4579.1941.A. Name of the Company Auto Aircon (India) Ltd. U.59 Lakhs (2006–2007 : Rs. U.) Rupees in Lakhs 8.973.No. Bahrain [Maximum balance during the year : Rs.2169.14 Nil 5049. 5.20 Lakhs)] Union National Bank. 3.3195.

VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. (a) (b) 3. 5.00) Nil (783.) 10.62 (2396.33 216. Note : Figures in brackets are of the previous year. on the basis of intimation received from suppliers.99 345.51 Nil 7.81 0. 2006.31) Contingency for tax matters 1225.00) Contingency for claims 783. Opening Balance Trade Guarantee 2473.83 (2769.95 (2173. 4.59) Utilisation 2521.59) 216.82 8. 60 .00 (1225.59 (Nil) Additions 4267.52 6.00) 783. 2008. Small and Medium Enterprises Development Act.83) Nil (350. Small and Medium Enterprises Development Act.08 (518.78) Nil (Nil) Nil (Nil) Reversal 336. the details are as follows: The Company has amounts due to Micro and Small Enterprises under The Micro.59 (783. CURRENT LIABILITIES AND PROVISIONS (a) (b) According to information available with the Management.42 (2473. (a) (b) 2. Principal amount remaining unpaid to any supplier as on 31-3-2008 Interest on 1(a) above The amount of principal paid beyond the appointed date during 2007-2008 The amount of interest paid beyond the appointed date during 2007-2008 Amount of interest due and payable on delayed payments Amount of interest accrued and due as at 31-3-2008 (1(b) + 3) Amount of further interest remaining due and payable even in succeeding years (in case of entities registered prior to 31-3-2007) Total outstanding dues of Micro and Small Enterprises – Principal – Interest (c) Provisions Rupees in Lakhs Closing Balance 3883.62) 1125.00 (Nil) Nil (Nil) The provision for Trade Guarantee is expected to be utilised for warranty expenses / settlement of claims within a period of 1 to 5 years.00 (875.74) 100.12 0. 2006 (MSMED Act) as at 31st March. As at 31-3-2008 Rupees in Lakhs 1.12 9. 2008 (contd. regarding their status under the Micro.

28)] (—) 4.91) Pension Plan Rupees in Lakhs — (—) 50.00 — Deferred Tax Assets Rupees in Lakhs — 1038.32 44.15 (28.62) (13.00 1378.00 — — — — — 2405.45 40. DEFERRED TAX ASSET Major components of deferred tax assets and liabilities arising are : As at 31st March.47) — (—) 21.96) (37.SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.12 1370.18 Lakhs (2006-2007: Rs.00 — SALES AND SERVICES With regard to long term Construction Contracts undertaken.91623. Expected return on plan assets (95.98 (321.61 Lakhs).00 450. Total expense 712.01 1703.70 69.12 Deferred Tax Liabilities Rupees in Lakhs 2486.00 484.00 5372. — 617.06) (106.00 — — — — — 2486. 2008 1.55 24. (i) (ii) Distributor Margin / Commission Cost of Purchases (Net) 14.) 11. 2007 Deferred Tax Assets Rupees in Lakhs (i) (ii) (iii) (iv) (v) (vi) Depreciation Voluntary Retirement Scheme Unpaid Statutory Liabilities Provision for Doubtful Debts and Advances Provision for Contingency Others Total Net Timing Differences 12. 2008 Gratuity Post Employment Funded Medical Benefits Rupees Rupees in Lakhs in Lakhs I.00 846. (i) OPERATING AND ADMINISTRATION EXPENSES Staff expenses (in respect of employees in India) includes employee defined benefits as given below : Defined Benefit Plans – As per Actuarial Valuation on 31st March.46) 71.12 2043. 2008 (contd.80 (21.00 4529.93) 61 .16) 3.01 Deferred Tax Liabilities Rupees in Lakhs 2405.00 769. Interest Cost 219.89 13.43) 5. the amount of net revenue recognised is Rs.01 2967.48) — [(67.126317. Actuarial (Gains) / Losses 419.19 130. Expense recognised in the Profit and Loss Account for the year ended 31st March. OTHER INCOME Adjustment in respect of previous year includes the following : Rupees in Lakhs Nil Nil Nil 2006-2007 Rupees in Lakhs 61.32) (21.00 1246.62) (71. Current Service Cost 168.95 (156.83 (293.32) 2.65 (217.54 (413.

92)] — (—) (631.06) 110.83 (293. Present value of Defined Benefit Obligation as at 31st March.84) — (—) — (—) 31. 5. IV.62) [(508.79 (113. 2008 (3310.51) 24. 4. 4.32) 219.62) [(508. 6.30) [(626.06 (868.55)] (508.92)] III.92) (367.49)] (1485.06) (13.15 (28.09) (479. 3.28) 826.45 (217.49)] Rupess in Lakhs 2.47 (1232.48 (67.33)] (631.09)] (631.32)] 14. 2.18 (758.06) (1485.32)] (3310. 2008 Funded status [Surplus / (Deficit)] Net asset/(liability) as at 31st March. 4.01 (—) (31. (521. 1.17) (344. 3. 2008 Plan assets at the beginning of the year Expected return on plan assets Contributions by employers Actual benefits paid Actuarial Gains / (Losses) Plan assets at the end of the year Actual return on plan assets (2+5) (2831. 2008 Fair value of plan assets as at 31st March.55)] 1824.56) 1824.60) [(62. 6. Change in Obligation during the Year ended 31st March.01) [(43.32) — (—) 50.33)] (521. 3.96) 434.62) [(508.65 (37.) Gratuity Funded Post Employment Medical Benefits Rupess in Lakhs Pension Plan Rupess in Lakhs II. 2008 1.60 (—) (67.43) (31.30) [(626.55) (2812.10) [(2831.32) (344.24) [(468.30) [(626.95 (21.09)] (521.47 (73.62) [(508. Net Asset / (Liability) recognised in the Balance Sheet as at 31st March. 2008 1.01) (—) — (—) — (—) — (—) — (—) — (—) 67.47) 21.42) 168.92)] 2.09)] — (—) (521.60) (—) — (—) — (—) — (—) 62 .46) (67. 2008 (contd.99 (6.24) [(468.92)] (631. 1232. 5.22) 95. 7.55 (156. Present value of Defined Benefit Obligation at the beginning of the year Current Service Cost Interest Cost Actuarial (Gains)/Losses Benefits Payments Present value of Defined Benefit Obligation at the end of the year Change in Assets during the Year ended 31st March.16) (21.30) [(626.10) [(2831.63) [(1599.47 (1232.32) 40.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.63) [(1599.09)] (626.

92) 1994–96 1994–96 1996–98 (Ultimate) 2.81 Lakhs) paid to a firm in which some of the partners of the statutory auditors are partners.773.49 (1944.01 (43. 16.20 42. EXCEPTIONAL ITEMS (a) (b) 17.32 (413. considered in the Actuarial valuation. seniority.22 330884740 5. take account of inflation.98 (321.30 63 . VI.15 562.18 (758.49) Rupess in Lakhs 626.54 (71.461.77 916.23 Lakhs (2006–2007 : Rs.16 206.62 (508.81 (iv) Legal and Professional charges includes Rs.75%) (7. (b) The estimates of future salary increases. Factory Closure Cost of Rs.75% ) (7. Rate of Return on Plan Assets 8% 8% 8% (7.63 (1599. Discount Rate 8% 8% 8% (7.71 Lakhs) is the difference between the Net Book Value of assets and estimated Realisable Price of the assets of Hyderabad Unit.75% (5%) (5%) (3. 3. 2008 (contd.Basic and Diluted (Face Value of Re.54 Lakhs (2006-2007 : Rs.33) 521.91) 31.Nil (2006-2007 : Rs.33) 631.32) 1485. Expenses as above (I) Employers Contribution Closing Net Liability Actuarial Assumptions Mortality Table (LIC) 1599.) Gratuity Funded Post Employment Medical Benefits Rupess in Lakhs 508.09 (479.15 Commission (b) (c) Lease rentals Foreign Exchange Loss (Net) 443. (iii) Other Expenses include : 2006-2007 Rupees Rupees in Lakhs in Lakhs (a) Payment to Directors other than Wholetime Directors for Sitting Fees and 68.7.75% ) (7. 321. Increase in Salary/Health Care Cost/Pension 5% & 7% 5% 3.50 330884740 6. 407.91 Lakhs (2006-2007 : Rs. 4.) .SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 2006-2007 18608.51) 44.48 Lakhs) being the interest received on Income Tax Refunds.62) 826.62 Earnings per Share has been computed as under : Net profit (Rs.30 (626.09) Pension Plan Rupess in Lakhs V.75%) 4. promotion and other relevant factors. Amount Recognised in the Balance Sheet 1.Lakhs) Weighted average number of Equity Shares Outstanding Earnings Per Share (Rs. the funding requirement and expenses.75%) (7.60 (62.93) 67.68 Lakhs) as an incremental liability.92 (367. such as supply and demand in the employment market.75%) (a) The Actuarial calculations used to estimate defined benefit commitments and expenses are based on the above assumptions which if changed would affect the defined benefit commitment’s size.83. 15. 1.19) 712.32) 71. Interest received in respect of sales on deferred payment terms and other accounts includes Rs.1 per share) 20836.31 Lakhs).75%) 3.8. Opening Liability 2.752. Nil (2006-2007 : Rs. (ii) Forwarding charges are net of Freight Recovery of Rs. The gratuity liability at the commencement of the year has been re-estimated by the Actuary at Rs.

80) 15.4502.583.32.00 (Nil) The pro rata difference between the forward contract rate and the exchange rate on the date of transaction to be charged / (credited) to Profit and Loss Account is Rs.1742.84 Lakhs (31-3-2007 : Rs.2661.13333.807.583.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. US$ 57. 42331. net of tax Rs.) 18. Contingent liabilities not provided for : (a) Guarantees on behalf of other companies : Limits Rs. 5707.54 Lakhs (31-3-2007 : Rs.68 Lakhs (31-3-2007 : Rs.43 Lakhs (Rs. 43472. 59159.05 Lakhs) Sell / Buy Sell Sell Buy Buy Buy Buy Buy Cross Currency Rupees Rupees Rupees Rupees US Dollar US Dollar US Dollar 19.77 Lakhs). 28939.37 Lakhs (US$ 972. Derivative Instruments : The Company has entered into the following derivative instruments : (a) Forward Exchange Contracts (being a derivative instrument).77) Lakhs (2006-2007 : Rs.91) 5.1372.(9. The following are the outstanding Forward Exchange Contracts entered into by the Company as on 31st March. Estimated amount of contracts remaining to be executed on capital account and not provided for : Rs.1125 Lakhs (31-3-2007 : Rs.80 Lakhs (Rs.20 Lakhs) US$ 1484.75 Lakhs (Rs.19723. 64 .12 Lakhs) Overseas Operations Rs.23 Lakhs) (ii) Amounts payable in foreign currency on account of the following : Import of goods and services Rs. to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.25 Lakhs (31-3-2007 : Rs.1036. 223.1225 Lakhs).27 Lakhs) against which a provision has been made for contingencies Rs.78 Lakhs) net of advance paid against such contracts : Rs.68 Lakhs) Note : Figures in brackets are of the previous year.1497. 20. 2008 : Currency US Dollar US Dollar GB Pound Euro Amt.73 Lakhs (US$ 74.3104. 2300. but for hedge purposes.59 Lakhs).29 Lakhs).00 (32.80 Lakhs) against which a provision has been made for contingencies Rs.61 Lakhs (Rs.80 Lakhs) US$ 143.84 Lakhs).81 Lakhs (31-3-2007 : Rs.392. in Lakhs 5.70 (22.20198.21 Lakhs (US$ 5. 2008 (contd.31 (112.36 Lakhs) Overseas Operations Rs.13084.08 Lakhs) the Company has a right to recover the same from a third party.77 Lakhs (US$ 665.75 Lakhs (31-3-2007 : Rs. (b) The year end foreign currency exposures (estimated in US $) that have not been hedged by a derivative instrument or otherwise are given below : (i) Amounts receivable in foreign currency on account of the following : Export of goods Rs.69) 10. which are not intended for trading or speculative purposes.65 Lakhs) against which amount outstanding was Rs.59 Lakhs (31-3-2007 : Rs. (b) Claims against the Company not acknowledged as debts : In respect of various matters aggregating Rs. In respect of a contingent liability of Rs.4365.13 Lakhs) US$ 1090.71 Lakhs (31-3-2007 : Rs. 3229.

40 3802. Amounts paid by the Company to Directors as remuneration for services rendered in any capacity (See Schedule ‘O’ for Computation of Net Profit in accordance with Sections 198 and 309 of the Companies Act.81 (c) Income tax demands : (i) (ii) (d) (e) 21.32 Lakhs (31-3-2007 : Rs.38840.50 19723.48292.29 Lakhs (2006-2007: Rs.63 51.14. 2008 (contd.) 2006-2007 Rupees in Lakhs Taxes.32 3519.80 Lakhs (2006-2007: Rs.44 Lakhs (2006-2007: Rs.82 Lakhs).49 Lakhs (31-3-2007 : Rs. Liquidated damages.12 Lakhs) issued by Banks at the request of the Company in favour of third parties.52 1.74 13.82 Lakhs (31-3-2007 : Rs.225.16 Lakhs). Cesses and Duties (other than income tax) Contractual matters in the course of business Real Estate Disputes and Demands Ex-employees matters Others 12278. In respect of other matters . In respect of guarantees aggregating Rs.98 Lakhs).76 248.97 24.60 4100.84 2006-2007 Rupees in Lakhs 13.04 48.78 7.6. It does not include provision for compensated absences and gratuity as separate actuarial valuation for Managing Director is not available.50 20198. (a) Auditors’ Remuneration in Other Capacity : Rupees in Lakhs 13.50 0. for delay in delivery of goods : Amount indeterminate. In respect of matters decided in Company’s favour by Appellate Authorities where the Department is in further appeal .84 0.88 Tax Audit Fees Company Law Matters Other Services [Exclude Service Tax set off of Rs.55 Lakhs).30 35.28 8. Rupees in Lakhs 22.76 248.05 109. 141. book debts and stocks.53 Lakhs (2006-2007 : Rs.10.58 22.Rs.94 42.45 Lakhs)] (b) Remuneration to Branch Auditors : Audit Fees Other Services Out of Pocket Expenses 14.400.SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.142.13 23.50 0. estimated money value of benefits : Rs. Rupess in Lakhs 12101.84 Staff demands under adjudication : Amount indeterminate.09 65 . 1956): 2006-2007 Rupees in Lakhs Remuneration to the Managing Director (2006-2007 : Managing Director) inclusive of contribution to Provident Fund and other funds : Rs.30 28.7.91 Lakhs) and commission : Rs.14.55 3519.11.Rs. the Company has given security by way of hypothecation of a part of tangible movable assets. except to the extent provided.142.63 51.

1998.B.53 Lakhs in respect of property at Pune for which agreements were executed and consideration received but for which conveyance formalities are pending completion.95 Lakhs in respect of property at Thane and Rs. respectively) but for which conveyance formalities are pending completion.40 237.63 3148. Remittance in foreign currencies for dividends : The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances.2070 Lakhs and Rs. in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. Earnings in foreign exchange received in India : 2006-2007 Rupees in Lakhs (a) (b) (c) (d) (e) (f ) F.734.223. 30. In terms of agreement dated 30th September.86 292.68.1735.47 Nil Nil 3819. The Company had accounted in 2004-2005 the profit on transfer of development rights of Rs. the profit on transfer of development rights of Rs.O.58 Nil Not later than one year Later than one year but not later than five years Later than five years 25. 27.53 Lakhs in respect of property at Thane for which agreement was executed and consideration received but for which conveyance formalities are pending completion. Value of exports (including amounts invoiced against work-in-progress) Service Commission (On Cash basis) Other Income Foreign Projects Profit Insurance Claim Received Warranty Recovery 3006. The particulars of dividends payable to non-resident shareholders which were declared during the year. In respect of land for the Nandalur Plant.12 Lakhs in respect of property at Lalbaug. The Company had accounted in 2003-2004. Fixed assets acquired under operating Leases : Total future minimum lease payments under non-cancelable operating leases in the aggregate and for each of the following future periods : Rupees in Lakhs 324. 26.82 5338.715 (iii) Gross amount of dividend (Rs. Company’s Refrigerators manufacturing facility at Nandalur was transferred on a running business / going concern basis to Electrolux Voltas Limited (EVL) on the close of the business hours on 31st March.31 Rupees in Lakhs 2049.) 24.178 2.13 Nil 2006-2007 Rupees in Lakhs 237. 2008 (contd.505.96 Lakhs but for which conveyance formalities are pending completion.2145.40 Lakhs.) 3168178 1336290 (iv) Year ended to which the dividend related March-2007 March-2006 32. Deed of Conveyance is pending completion.67 7624.12 242. 29. are as under : 2006-2007 (i) Number of non-resident shareholders 940 579 (ii) Number of Equity shares held by them 31.65 66 . Mumbai for which agreement for assignment was executed and clearance from the Income Tax Department under Section 269 UC of the Income Tax Act. The Company had accounted in 1999-2000 the profit on transfer of development rights of Rs. The Company has accounted in 2007-2008 the profit on transfer of development rights in respect of land adjoining Simtools at Thane for which an Agreement was executed and consideration received Rs. 1961 was received but for which conveyance formalities are pending completion.22.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.46 142.57 650. 31. if any. 1999. The Company had accounted in 2006-2007 the profit on transfer of development rights in respect of Upvan land and Henkel Switchgear Limited approach land at Thane for which agreements were executed and consideration received (Rs.54 318.919. 28.

Value of Imports on C.00 100.61 64.Tonnes Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers 5053 723 1231 101435 69254 85206 1240 44681 87815 19882 5 6076 739 1168 76908 88810 62086 1082 35989 70358 17962 38 2950.77 26597.28 28609.29 393.13 100.45 20020. Flaps and Rims Centrifugal Components Others M.12 67 .77 101.11 930.00 80.55 5927.77 2471.15 53.49 369. Tubes.81 2188. basis : 2006-2007 Rupees in Lakhs Raw Materials Finished Goods Components & Spares Capital Goods 35.55 248.54 Rupees in Lakhs 1973.24 14580.72 196.) 33.I.23 6.84 1101.83 467.04 21577.F. 2008 (contd.84 1212.04 423.Tonnes M.48 4165.97 22889.32 2.48 3106.81 2006-2007 Value Rupees in Lakhs 5020.00 Value Rupees in Lakhs 5719. Information in regard to Raw Materials and Components consumed : (a) Items Unit of Measurement Quantity 2006-2007 Quantity Value Rupees in Lakhs Steel/Ferrous Metals Non-Ferrous Metals Engines Motors Castings & Forgings Compressors Shells Valves Thermostats & Pressurestats Tyres.27 980.87 81.00 2006-2007 Value Rupees in Lakhs 3119.79 2443.54 1203.28 388.86 13802.69 % to total Consumption Imported Indigenous 20.59 26597.29 26.12 (b) 2006-2007 % to total Consumption 18.12 Rupees in Lakhs 39.22 1076.06 86.15 28609.65 5363. Expenditure (subject to deduction of tax wherever applicable) in foreign currency from India : 2006-2007 Rupees in Lakhs Royalty Other matters 34.19 128.SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.85 40463.

12 1811. Sales. (A). Opening Stocks and Closing Stocks: Purchases (Other than Raw Materials and Components) and Sales : Class of Goods Unit of Measurement Airconditioners and Water Coolers Room Airconditioners Airconditioners for Specialised Applications Water Coolers White Goods Refrigerators Freezers and Bottle Coolers Airconditioning and Refrigeration Turnkey jobs Packaged Airconditioners Package Chillers Vapour Absorption Machines Number of jobs Numbers Numbers Numbers 960 8382 431 41 1076 7382 393 30 56417.43 1833.59 3180.99 6605.) 36. (iii) Production includes for captive consumption.95 6048.71 7185.91 5556.65 Numbers 390966 257677 54237.53 168 48811 1078 50398 3.17 82 72310 2496 54915 243.82 Quan. no licenses are required for the products manufactured by the Company. Quantitative information in regard to Licensed Capacity.98 338569 226983 59778.39 1423. 37.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.06 1285. (ii) Installed capacities are as certified by the Management and relied upon by the Auditors.24 Nil 94. Installed Capacity and Actual Production of the goods manufactured by the Company : Installed Installed Actual Actual Capacity Capacity Production Production 2006-2007 2006-2007 Air Conditioners and Water Coolers: Room Air Conditioners Airconditioners for Specialised Applications Water Coolers White Goods: Commercial Refrigerators Open Type Compressors with Accessories Packaged Airconditioners Package Chillers Semi Hermetic Compressors Vapour Absorption Machine Materials Handling Equipment: Forklift Trucks Hydraulic Truck Cranes Construction and Mining Equipment: Crushers 10 10 13 5 500 100 500 100 1429 15 1291 23 (Numbers) (Numbers) (Numbers) (Numbers) (Numbers) (Numbers) 75000 1000 18050 1130 3600 135 75000 1000 16050 1130 3600 135 47862 420 12681 592 1158 40 42376 380 11415 548 1113 33 (Numbers) (Numbers) (Numbers) Nil 2000 45000 Nil 2000 45000 Nil 100 21428 6 2502 11979 Notes: (i) As per the Industrial Policy declared in July 1991 and as amended in April 1993.98 Numbers Numbers 4 41022 Nil 45386 4.15 5709. 2008 (contd. These are alternative and not cumulative and as such production is not strictly comparable with the same.36 4545.45 Numbers Numbers Nil 714 Nil 1083 Nil 63.53 4783.60 35339.Quantity tity 2006-2007 Purchases Rupees in Lakhs Sales Rupees in Lakhs 2006-2007 Quantity Quantity 2006-2007 Rupees in Lakhs Rupees in Lakhs 2006-2007 68 .07 50.35 Nil 1738. Information in regard to Purchases.73 39731.53 44470.

10 7.58 4571.22 1194.56 6736.43 2429.99 41. Accessories and Spares for Drilling and Mining (Refer Note below) Textile Machinery and Equipment Pesticides and Chemicals Chemicals and Minerals Agro Industrial Products Hydraulic Pumps.43 8287.95 53.26 3613.SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.14 6093.89 3369.) 37(A).04 252.98 3516.00 29945.85 11521.45 2622.64 2243.96 74 56 70 28 27 41 3146.10 1124. Spares for Forklift Trucks. Accessories and Sundry Equipment Pollution Control Equipment and Systems Water Pollution Control Equipment and Systems Construction and Mining Equipment Excavators Crushers Screening Equipment Sundry Equipment.32 6379. and Other Agro Industrial Products Others Other Engineering Products Turnkey Contracts Camera Room Heaters Services Rendered 480 271 2.21 2776.35 31603.13 20. Consumer Durables and Spare Parts (Refer Note below) Materials Handling Equipment and Spares Forklift Trucks Sundry Material Handling Eqpt.97 308617.89 0.53 1245.75 4474.54 712.49 2956.19 5084.40 88749.27 62.) : Class of Goods Unit of Measurement Quan.64 78196.79 66443.84 109.24 Numbers 16 22 1740.Quantity tity 2006-2007 Purchases Rupees in Lakhs Rupees in Lakhs 2006-2007 Quantity Quantity 2006-2007 Sales Rupees in Lakhs Rupees in Lakhs 2006-2007 Sundry Equipment for Airconditioning and Refrigeration.34 36.58 Numbers 1434 1278 13231. Purchases (Other than Raw Materials and Components) and Sales (contd.87 2285. 69 .26 5.97 320.84 7334.83 3112. etc.66 2846. The purchases disclosed above are to the extent of sales made during the year.43 1.22 694.10 Note : Spare parts and sundry equipment purchased are either used for internal service/warranty or for sales. (Refer Note below) Hydraulic Truck Cranes Machine Tools Machine Tools.55 15. 2008 (contd.68 3041.54 170.41 2684.51 4392.33 245078.71 3546.36 3668.96 520..32 3188.66 423 54 6 539 25.94 Numbers Numbers Numbers 81 50 82 32 24 41 2868.12 0.70 58487.01 6367.58 36.05 3548.78 1027. Motors.48 1236.

34 Nil 1.16 1142.35 14891. Opening and Closing Stocks : Class of Goods Opening Stock Unit of Quan.22 115.88 51.68 4. Mechanical Dust Collectors. .07 6.45 1764.56 359.51 Nil 702 22 758 213 4.45 244. 2008 (contd.10 218.00 361.29 70 .18 125.94 281.06 2578.46 Nil 6412.45 125.52 274.69 Nil Nil 14 9 12 7 2 Nil 24.75 0. etc.18 125.09 228.02 291.04 94.03 110. Motors. Consumer Durables and Spare Parts Materials Handling Equipment and Spares Forklift Trucks Sundry Material Handling Eqpt.58 0.tity tity in Lakhs in Lakhs ment 2006-2007 2006-2007 Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers 58321 22898 91 217 9656 816 44 2 29057 6412.04 7 2 Nil 3 Nil Nil 248.18 0.94 281.63 1408. Spares for Forklift Trucks.44 1.79 16.34 Nil 1591.15 244.16 430.06 1.02 231.41 21143 1408.67 9.90 468.09 Excavators Crushers Screening Equipments Sundry Equipment. Accessories and Spares for Drilling and Mining Textile Machinery and Equipment Chemicals Chemicals and Minerals Agro Industrial Products Hydraulic Pumps.06 Nil 0.93 430.24 Nil Numbers 1 Nil Nil 1 0.63 3319.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.00 692.64 2401.45 94.29 12135.01 62.21 2057.75 9 14 75. Others Camera Room Heaters 1591.67 24282.79 22898 91 217 9656 816 44 2 945.97 Quantity Closing Stock QuanRupees Rupees tity in Lakhs in Lakhs 2006-2007 2006-2007 58321 13771.04 248.67 9.68 4.92 1061. Hydraulic Truck Cranes Machine Tools Machine Tools. etc.01 0. Accessories and Sundry Equipment Pollution Control Equipment and Systems Electrostatic Precipitators.18 0.00 361.38 304.30 150 1255 550 32 1 142.01 6.68 142.Components and Parts Construction and Mining Equipment 110610 12741 93 32 9114 632 33 1 16941 1142..90 Numbers 14 1 94.) 37(B).03 110. etc.34 332.45 1760.07 Airconditioners and Water Coolers Room Airconditioners Water Coolers Airconditioners for Specialised Applications White Goods Refrigerators Freezers and Bottle Coolers Packaged Airconditioners Package Chillers Vapour Absorption Machines Sundry Equipment for Airconditioning and Refrigeration.18 2057.21 92.68 683.68 1961.45 125.QuanRupees Rupees Measure.32 38.26 77.07 14891.01 758 213 790 1983 6.93 20.04 94.27 370.93 1803.45 0.55 6.

56) (5840.48 (7160.00 Nil 660. 2008 Income Expenses Assets Liabilities Contingent Capital Liabilities Commitment 7117.13) (1285. Metrovol FZE VIL Overseas Enterprises B.31) (108.92 124. the figures are as of that date.59) (73.23) * As the accounting year of these companies ends on 31st December.95) (8230. Related Party Disclosures : (a) List of Related Parties and Relationships : Party A.SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.32) (4215.95 (1399. (Under liquidation) Westerwork Engineers Ltd. Auto Aircon (India) Ltd .06 680. Voice Antilles N.) 37(B).87) 95.39) 3000.29 1553.V.48 Nil 16910. issued against schemes and / or transferred to jobs during the year.Hitachi Plant % Holding 50 49 49 49 26 37. Terrot GmbH 39.12 (Nil) (Nil) (Nil) (Nil) (Nil) (Nil) 10616.89) (Nil) (1527. Agro Foods Punjab Ltd.11) 675.78) (13. Segmental Reporting : Segment information has been presented in the Consolidated Financial Statements as permitted by Accounting Standards (AS-17) on Segment Reporting as notified under the Companies (Accounting Standards) Rules.98 1509. 2006.99) (Nil) (703.57) (4891.09) (967. 2008 (contd.84 1341.76 Nil 1818.01) (9605.02) (10590. Relation Subsidiary Shareholding of the Company on its own or along with subsidiaries exceed 20% 71 .78 15191.48 4235.34 (3525.) : Note: Quantities of finished goods capitalised/(decapitalised).17) (55. 2008 Name of the Joint Venture / Operations Universal Comfort Products Private Limited Lalbuksh Voltas Engineering Services & Trading LLC *Universal Voltas LLC *Saudi Ensas Company for Engineering Services WLL Naba Diganta Water Management Limited ETA-Voltas . (Under liquidation) B.42 95.05 (1447.75) (2126. Associate Brihat Trading Private Ltd. Unit of Measurement Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers Quantity 108 297 17 20 307 113 137 4483 172 Nil Quantity 2006-2007 1436 695 (40) 65 346 297 1231 3767 143 2 Room Airconditioners Water Coolers Refrigerators Airconditioners for Specialised Applications Freezers and Bottle Coolers Camera Room Heaters Packaged Airconditioners Package Chillers Vapour Absorption Machines 38. scrapped.V.95 Nil 10104.50 Rupees in Lakhs Year ended 31st March.88 6100.45) (Nil) (5299. Opening and Closing Stocks (contd.44) (623.61 (6299. Weathermaker Ltd.93 10222. In compliance with the Accounting Standard 27 . Simto Investment Company Ltd.25) (2933.09) (1308.05 1609. 40.08) (1641. 2007.77 2365.77 1352.05) 1610. (ii) Figures in brackets are of the previous year.‘Financial Reporting of Interests in Joint Ventures’ (AS-27) as notified by the Companies (Accounting Standards) Rules 2006.35 13.72) (5521.95 5002.26 Nil 6650.24 Nil 1136. the Company has interests in the following jointly controlled entities and operations: As at 31st March.25 Nil 1. Notes: (i) The previous years figures of Saudi Ensas Company for Engineering Services WLL were unaudited.73) (10484.34 7710.

87) Key Management Personnel — (—) 2.) : Party C.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.) 40(a).15 (2. 2008 (contd.18 (364.73 (19836.05 (109.45) — (—) — (—) 49.95 (85.31 (83.68) 802. Saudi Ensas Company for Engineering Services WLL Universal Voltas LLC Lalbuksh Voltas Engineering Services & Trading LLC Naba Diganta Water Management Ltd.70) — (—) — (—) — (—) — (—) 0.31 (20414.51) — (—) — (—) — (18.52) 3.25 (1674.08 (—) 19309.05 (109.68) — (—) — (—) — (—) — (—) — (—) — (—) — (—) — (—) 464.41 (1721.99 (—) 141.60) 59.25 (—) — (—) — (—) — (—) — (—) — (—) — (—) — (—) — (—) 141.46 (703.46) — (7.30) 710.32) 0.89 (0. Related Party Transactions : Transactions Purchase of Goods [Refer 40 (c) (1)] Sale of Goods [Refer 40 (c) (2)] Service Income [Refer 40 (c) (3)] Sale of Fixed Assets [Refer 40 (c) (4)] Interest Income [Refer 40 (c) (5)] Dividend Income [Refer 40 (c) (6)] Freight Recovery [Refer 40 (c) (7)] Advertising Recovery [Refer 40 (c) (8)] Commision Received [Refer 40 (c) (9)] Provision / Write off of Debts and Advances Reversal [Refer 40 (c) (10)] Remuneration Paid / Payable [Refer 40 (c) (11)] Tata Brand Equity [Refer 40 (c) (12)] Interest Expenses [Refer 40 (c) (13)] Other Operating and Administration Expenses Received/Receivable [Refer 40 (c) (14)] Subsidiaries 124. List of Related Parties and Relationships (contd. (Under liquidation) Agrotech Industries Ltd.98) — (49.95 (85.93) 37.39) 14.36) 108.78) — (7.57 (1807. A.60 (2.51) 802.17) 435.23) 43.61 (98.46) 72 .S.87) 3. Joint Ventures Universal Comfort Products Private Ltd.17) 435. Tata Sons Ltd.06 (15.60) 710.73) 33.28) 111.13 (1706.58 (577.82 (95.09 (14. E.61 (98. AVCO Marine S.81) 108.17 (341. (Under closure) D.59) Associates and Joint Ventures 19184. Key Management Personnel Mr.18 (364.28) 61.98) — (68.85 (61.33) 93.13) 464.23) — (—) 0.a.13) — (—) — (—) — (—) Rupees in Lakhs Promoter Total — (—) 5.61 (706.97 (33.99 (—) — (—) — (—) 43.88 (32.17 (341.Soni Relation Holdings and/or agreements in conjunction with group companies Promoters holding together with its subsidiary is more than 20% Managing Director 40(b).93) 38.

2008 (contd.00) Warranty Recovery [Refer 40 (c) (20)] — (—) 49.05) Credit Balance Oustanding as on 31-3-2008 [Refer 40 (c) (24)] 394.62 (44.73) 96.84 (1174.29 (—) 459.) 40(b).59) — (—) — (—) 49.98) — (—) — (—) — (638.74 (1097.85 (3073.62 (44.92 (902.59) Provision for Debts and Advances [Refer 40 (c) (21)] — (—) — (296.55) Advance Share Application Money [Refer 40 (c) (16)] — (—) — (638.39 (3669. Related Party Transactions (contd.92) Note : Figures in bracket are of previous year.32 (29.74) Provision for Debts and Advances Due as on 31-3-2008 [Refer 40 (c) (22)] 77.19) Debit Balance Outstanding as on 31-3-2008 [Refer 40 (c) (23)] 123.05) 1.09) — (—) — (—) 373.) : Transactions Subsidiaries Associates and Joint Ventures — (—) Key Management Personnel — (—) Rupees in Lakhs Promoter Total Other Operating and Administration Expenses -Paid / Payable [Refer 40 (c) (15)] 33.00) — (—) — (—) — (1000.87) — (—) 0.36) — (—) 464. 73 .SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.79) 4509.90 (343.10 (77.54) Investments [Refer 40 (c) (18)] 0.77) 3649.58 (1009.82) 129.18) 335.64 (252.31 (14.54) — (—) — (—) — (—) — (5.37 (106.10 (0.43) — (—) — (—) 1.40 (140.74) — (—) — (—) — (296.48) Refund of Intercorporate Deposits Placed [Refer 40 (c) (19)] — (—) — (1000.98) Purchase of Fixed Assets [Refer 40 (c) (17)] — (5.10) 296.01 (14.30 (140.

Mr.66 19429. Provision / Write off of Debts and Advances . Details of material (more than 10% of the total related party transactions of the same type) transactions with Related Party : Rupees In Lakhs Name of Party 1.97 61. Tata Sons Ltd. 19-6-2006) Metrovol FZE 10.33 5.) 40(c). 2008 (contd. Interest Expenses Universal Comfort Products Private Ltd.55 199. Service Income Universal Comfort Products Private Ltd.Soni Tata Brand Equity Tata Sons Ltd. 9.95 85.31 — — — 18541.17 — — 33. 8.VOLTAS Annual Report 2007-2008 SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.93 464.05 109.48 371.85 49.88 59. 13.13 710. (upto 22-3-2007) Universal Comfort Products Private Ltd.f.18 364.70 435.99 — 61.25 — — — — 18. A. Commission Received Terrot GmbH (w.a. Weathermaker Ltd. Interest Income Simtools Ltd.23 Transaction Value Transaction Value 2006-2007 74 .60 49. Remuneration Paid / Payable Mr.25 1683.54 555. A. Weathermaker Ltd. LLC Metrovol FZE 7.60 2. Sale of Fixed Assets Universal Comfort Products Private Ltd.73 — 7.37 148. Universal Voltas LLC 4. Dividend Income Simto Investment Company Ltd.17 341.61 98.60 33. Advertising Recovery Universal Comfort Products Private Ltd. 6.98 601. Lalbuksh Voltas Engg. 5.41 2.e.00 2. Freight Recovery Universal Comfort Products Private Ltd. 43. 12. Sale of Goods Universal Comfort Products Private Ltd. 11.28 108.Soni 3.Reversal AVCO Marine S.S.23 141. Purchase of Goods Universal Comfort Products Private Ltd.Services & Trading Co.25 1212. 2.

Tata Sons Ltd. Provision for Debts and Advances Due as on 31-3-2008 Saudi Ensas Company for Engineering Services WLL Auto Aircon (India) Ltd .43 1000. Debit Balance Outstanding as on 31-3-2008 Saudi Ensas Company for Engineering Services WLL Auto Aircon (India) Ltd.89 464.10 782.a.74 77.30 — — 49. 15.45 296. 24. wherever necessary. 23.50 33.a. D. AVCO Marine S.10 46.74 77. Chairman Managing Director Directors Transaction Value Transaction Value 2006-2007 14.) 40(c).SCHEDULE ‘P’ : NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH.50 5. Warranty Recovery Universal Comfort Products Private Ltd. Advance Share Application Money Saudi Ensas Company for Engineering Services WLL Universal Comfort Products Private Ltd. Provision for Debts and Advances Saudi Ensas Company for Engineering Services WLL 22.19 — — 13. P. N. Figures for the previous year have been regrouped/recast.e.10 — — 782. 16. Refund of Intercorporate Deposits Placed Universal Comfort Products Private Ltd. Details of material (more than 10% of the total related party transactions of the same type) transactions with Related Party (contd. Purchase of Fixed Assets Auto Aircon (India) Ltd . Jhaveri S. Soni Nasser Munjee N. Terrot GmbH (w.00 44. Kulkarni Ravi Kant N.Taxation & Company Secretary Mumbai.) : Rupees In Lakhs Name of Party Other Operating and Administration Expenses -Received / Receivable Universal Voltas LLC Simtools Ltd.54 — 140.82 206. D.10 — 296. 20.59 — 14.74 77.62 — 296.27 36. 21.S. Metrovol FZE Terrot GmbH AVCO Marine S.90 — 10. Other Operating and Administration Expenses -Paid / Payable Metrovol FZE Tata Sons Ltd. Khurody N. 18. 15th May. Investments Naba Diganta Water Management Ltd.45 2914. Credit Balance Outstanding as on 31-3-2008 Universal Comfort Products Private Ltd. Miyajiwala V.73 14. Tata M.59 296. 2008 75 . (upto 22-3-2007) Metrovol FZE Universal Comfort Products Private Ltd.11 — 3630.S. J. 24.74 296.01 96. For and on behalf of the Board Ishaat Hussain A.00 4. 2008 (contd. M. 17.93 — 41.31 — — — 1.48 432. Malhotra Executive Vice President (Finance) General Manager . 19-6-2006) 19.f.74 77.

VOLTAS Annual Report 2007-2008 Balance Sheet Abstract and Company’s General Business Profile pursuant to Part IV of Schedule VI to the Companies Act. Generic Name of Three Principal Products / Services of the Company (as per Monetary Terms) : Item Code No. (ITC Code) Product Description 8 4 2 7 2 0 0 0 / 8 4 2 7 1 0 0 0 F O R K L D I I F T T R U C K S I C E S E L / E L E C T R 76 . Capital Raised during the year (Amount in Thousands): Public Issue N I L Bonus Issue N I L III. 6 V. Balance Sheet Date L 2 9 3 0 8 M H 1 9 5 4 P L C 0 0 9 3 7 1 3 1 Date State Code 1 1 0 3 Month 2 0 0 8 Year II. Thousands): Turnover 3 0 8 6 1 7 3 3 Profit Before Tax 3 0 7 5 3 9 5 Earnings Per Share in Rs. Registration Details: Registration No. Thousands): Total Liabilities 5 8 5 9 8 6 2 Sources of Funds Paid-up Capital 3 3 0 6 9 5 Secured Loans 4 7 6 6 6 0 Application of Funds Net Fixed Assets 1 5 9 4 9 8 6 Net Current Assets 1 3 8 1 3 0 1 Misc. Expenditure N I L IV. Position of Mobilisation and Deployment of Funds (Amount in Rs. Performance of the Company (Amount in Rs. (ITC Code) Product Description 8 4 1 5 1 0 9 0 A I R C O N D I T I O N I N G M A C H I N E S Rights Issue N I L Private Placement N I L Total Assets 5 8 5 9 8 6 2 Reserves & Surplus 5 0 5 2 5 0 7 Unsecured Loans N I L Investments 2 6 7 9 2 6 3 Deferred Tax Asset 2 0 4 3 1 2 Accumulated Losses N I L Total Expenditure 2 7 7 8 6 3 3 8 Profit After Tax 2 0 8 3 6 5 0 Dividend Rate % 1 3 5 8 4 1 8 6 9 9 0 R E F R C H I I G E R A T I O N I N G E Q U I P M E N T & A B S O R P T L L E R H E A T P U M P S P A C K A G E Item Code No. (ITC Code) Product Description Item Code No. I. 1956.

certain subsidiaries and joint ventures. 20 lakhs. whose financial statements reflect total assets of Rs. 68863 lakhs. We did not audit the financial statements of the Qatar. 83335 lakhs and net cash inflows amounting to Rs. the Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India: 4. its subsidiaries and jointly controlled entities (the Company. in our opinion. subsidiaries. and in the case of the Consolidated Cash Flow Statement. of the cash flows of the Group for the year ended on that date. These financial statements are the responsibility of the Company’s Management. We conducted our audit in accordance with the auditing standards generally accepted in India. An audit includes examining. joint ventures and associates. 2008. Shah Partner Membership No. its aforesaid branches. 2. evidence supporting the amounts and disclosures in the financial statements. These financial statements have been audited by other auditors whose reports have been furnished to us and our opininon in so far as it relates to the amounts included in respect of these branches. subsidiaries.AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS To the Board of Directors of Voltas Limited 1. of the profit of the Group for the year ended on that date. in the case of the Consolidated Profit and Loss Account. 11783 lakhs for the year ended on that date as considered in the Consolidated Financial Statements and an associate whose financial statement reflect the Group’s share Mumbai. 3. Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. joint ventures and associates is based solely on the reports of the other auditors. of the state of affairs of the Group as at 31st March. 15th May. For Deloitte Haskins & Sells Chartered Accountants 5. Bahrain and UAE Branches. These Standards require that we plan perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement of the Group for the year ended on that date. its Subsidiaries and jointly controlled entities constitute “ the Group”) as at 31st March. 15860 (iii) (ii) (i) in the case of the Consolidated Balance Sheet. as well as evaluating the overall financial statement presentation. On the basis of the information and according to the explanation given to us and on consideration of the separate audit reports and the individual financial statements of the Company. 2007 of Rs. We report that the Consolidated Financial Statements have been prepared by the Company in accordance with the requirements of Accounting Standard 21 (Consolidated Financial Statements). of profit for the year ended on 31st December. 2008 Nalin M. total revenues of Rs. We believe that our audit provides a reasonable basis for our opinion. We have audited the attached Consolidated Balance Sheet of VOLTAS LIMITED (“the Company”). An audit also includes assessing the accounting principles used and significant estimates made by the Management. 77 . Accounting Standard 23 (Accounting for Investment in Associates in Consolidated Financial Statements) and Accounting Statndard 27 (Financial Reporting of Interests in Joint Ventures) as notified under the Companies (Accounting Standareds) Rules. both annexed thereto. The Consolidated Financial Stattements include investments in associates accounted on the equity method in accordance with Accounting Standard 23 (Accounting for Investments in Associates in Consolidated Financial Statements) and the jointly controlled entities accounted in accordance with Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures). 2006. on a test basis. 2008.

Schedule ‘M’ ) CURRENT ASSETS. D.39 17012. Tata M.43 2967. Malhotra In terms of our Report of even date attached.22 3306.VOLTAS Annual Report 2007-2008 CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH.01 51229.95 54415.10 LOAN FUNDS 5.83 39067. SECURED LOANS 6.01 21685. For Deloitte Haskins & Sells Chartered Accountants Executive Vice President (Finance) Nalin M. INVESTMENTS DEFERRED TAX ASSET (Net) (See Note 6. Kulkarni Ravi Kant N. P.25 48588. UNSECURED LOANS 7.73 11130. Khurody N.10 Nil 150. TOTAL MINORITY INTEREST C D TOTAL APPLICATION OF FUNDS 8. J.07 53753. RESERVES AND SURPLUS 3.80 7374. 15th May. DEFERRED TAX LIABILITY (Net) (See Note 6.18 166303.70 15272. 2008 As at 31-3-2007 Rupees in Lakhs Schedule SOURCES OF FUNDS SHAREHOLDERS FUNDS 1. D.54 16009. H 126197.26 13787. SHARE CAPITAL 2. LOANS AND ADVANCES 1.12 63984.Taxation & Company Secretary Mumbai.10 12. Miyajiwala V.77 17927. Inventories 2. Cash and Bank balances 4. M.28 27. 11. N. Sundry Debtors 3.68 22297.76 2043.99 43.16 42373.01 30018.73 134089. Soni Nasser Munjee N.22 111792.32 54. Loans and Advances LESS : CURRENT LIABILITIES AND PROVISIONS (A) Current Liabilities (B) Provisions NET CURRENT ASSETS TOTAL F G A B Rupees in Lakhs Rupees in Lakhs 3306.59 28512.85 177. 15th May.44 25852.09 3.00 65301. The Schedules referred to above form an integral part of the Accounts) For and on behalf of the Board Chairman Managing Director Directors Ishaat Hussain A. Interest accrued on Investments 5.83 17456.59 12479.75 93864.93 18984. (For notes forming part of the Accounts see Schedule ’M’. Jhaveri S. 2008 General Manager . 4.69 13.68 147882.21 14725. Shah Partner Mumbai.05 1284.90 65301.25 53753.37 57722. 2008 78 . FIXED ASSETS GROSS BLOCK LESS : DEPRECIATION NET BLOCK CAPITAL WORK-IN-PROGRESS 9. Schedule ‘M’ ) E 31632.91 18420.61 48. 10.33 16766.90 14620.61 57025.51 1971.

20 (63.94 759.64 6963.25 4074.53) 4. SALES AND SERVICES Less : EXCISE DUTY NET SALES AND SERVICES OTHER INCOME COST OF SALES.86 30726. 15th May.40 320292.27 17940.70 5119. 1 each (including Exceptional items) (in Rs. 2007 Rupees in Lakhs 259830.74) 20.03 Nil 5759.11 Rupees in Lakhs 2.48 21.88) 1669.68 17281.51 28626.65 6.) (See Note 10. D. Basic and diluted earnings per share of Re.05 822.80 (467.15 3158.00 55. 10. 3.15 20768.00 23902.85 740.01 8784.10 262.59 (18.79 13673. 17.13 14306. 8. N.10 7156.27 For and on behalf of the Board Chairman Managing Director Directors In terms of our Report of even date attached. Jhaveri S.20 6. Miyajiwala V. J.19 0.97 (54.81) 344.30 9966.57 4063. 6. D.75 32.Taxation & Company Secretary Mumbai.59 5759. 2008 Ishaat Hussain A. 14. Soni Nasser Munjee N.37 294987. 5.68 239853.53 (609.Provision for Current Tax . 15th May.07 52.Provision for Fringe Benefit Tax PROFIT AFTER TAXATION MINORITY INTEREST IN PROFITS SHARE OF PROFIT OF ASSOCIATE PROFIT AFTER MINORITY INTEREST AND SHARE OF PROFIT OF ASSOCIATE PREACQUISITION ADJUSTMENTS TRANSFERRED TO CAPITAL RESERVE BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR AMOUNT TRANSFERRED TO FOREIGN EXCHANGE TRANSLATION RESERVE AMOUNT TRANSFERRED FROM FOREIGN PROJECTS RESERVE PROFIT AVAILABLE FOR APPROPRIATIONS APPROPRIATIONS : (a) GENERAL RESERVE (b) SPECIAL RESERVE (c) INTERIM DIVIDEND (d) PROPOSED DIVIDEND (e) TAX ON DIVIDEND I J Rupees in Lakhs 326438.31 Nil 4466.40 366. 252673.78 6146.Provision for Taxation of Earlier Years . Shah Partner Mumbai. DEPRECIATION AND EXCEPTIONAL ITEMS FINANCIAL ITEMS DEPRECIATION ON FIXED ASSETS PROFIT BEFORE EXCEPTIONAL ITEMS EXCEPTIONAL ITEMS PROFIT BEFORE TAXATION PROVISION FOR TAXATION . 13. 7. SERVICES AND EXPENSES PROFIT BEFORE FINANCIAL ITEMS. P. For Deloitte Haskins & Sells Chartered Accountants Executive Vice President (Finance) Nalin M. Khurody N.39 20759. 18. 2008 General Manager .26 27567.09 K L 11.18 (17. Tata M. 9.21 3308.96) 3474.16 19584.Provision for Deferred Tax .CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH.13 18143. 19. Schedule ‘M’) (For notes forming part of the Accounts see Schedule ’M’. 4.10) 250.67 3321.Provision for Wealth Tax .21) 1556.48 32.39 20171. 15.24) 183.10 327. The Schedules referred to above form an integral part of the Accounts) 79 . 20. Kulkarni Ravi Kant N.00 26714. BALANCE CARRIED FORWARD 7129.32 20157. 16. 12.62 (11. M.93 24245. 2008 Year ended 31st March. Malhotra Schedule 1.11 (898.

Jhaveri S.00) 235.42 13.78 1108. Shah Partner Mumbai. Tata M.36) (8436.68) 199.12) (15.93 16766.92 6156.61 C.01 2006-2007 Rupees in Lakhs 24245.18) 786. Malhotra In terms of our Report of even date attached. Khurody N.57 (1742.74) (4645.23 636. 2008 80 .67) 443.65 (100.24 3.00) 4.25) (8.28 653.26 20. 2008 A.15 19.87 1809.12 0. Soni Nasser Munjee N. J.00 (158.57 1556. Kulkarni Ravi Kant N.97) 1966. 15th May.58 358. M.12 500.43 5967.35) 498.54 (26904.92) 3790.11 21164.57 2.08 7198.32 77.03 41830. D.44 12790.68 1075.41) (43.61 (148.Adjustments for : Depreciation Share in profit of Associate Impairment of Assets Provision for Contingencies Provision for Diminution in value of Investments Net Profit on Sale/Transfer of Fixed Assets and Tenancy Rights Profit on Sale of Investments Interest paid [Net] Income from Investments Exchange Fluctuation on Consolidation Provision for Compensated Absences Provision for Gratuity Provision for Post Retiral Medical Benefits Cost of Voluntary Retirement Scheme Operating Profit before Working Capital changes Adjustments for: (Increase)/Decrease in Inventories (Increase)/Decrease in Trade and other Receivables (Increase)/Decrease in Loans and Advances (Decrease)/Increase in Advances from Customers (Decrease)/Increase in Trade Payables Cash generated from operations Less: Taxes paid Voluntary Retirement /Pension Scheme Payments NET CASH FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Sale of Fixed Assets Proceeds from Surrender of Tenancy Rights Purchase of Investments Sale of Investments Preacquisition profit on Investment in Associate Minority Interest Interest received Income from Investments Inter Corporate Deposits NET CASH FROM / (USED IN) INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Share Capital (Calls in Arrears) Securities Premium (Calls in Arrears) Increase/(Decrease) in other Borrowings Proceeds from Long Term Borrowings Repayment of Long Term Loans Interest paid Decrease in unpaid Deposits Dividend paid including dividend tax NET CASH FROM / (USED IN) FINANCING ACTIVITIES NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AS AT 1-4-2007 (See Schedule G) Adjustment of dividend received from a Joint Venture in previous year CASH AND CASH EQUIVALENTS AS AT 31-3-2008 (See Schedule G) 1669.56 B.73) (191. For Deloitte Haskins & Sells Chartered Accountants Executive Vice President (Finance) Nalin M.91 (1075. 35673.61) 29040.74 Nil 16766.52 12618.68 4.59 Nil (1527. D.24 0.78 (116071.89 (19359.15 (11872.06 180.53 45.68) 15948.73 (1685.57) 3693.45) 30018.55 (3556.87 (4838.00 4570.14) (3880.63) (9886.75 204.39 Nil (0.27) (267.64 188.93) 176.81 (0.57 1133.50) (901.VOLTAS Annual Report 2007-2008 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH.55 (2762.09 Rupess in Lakhs 30726.70 970. N.Taxation & Company Secretary Mumbai.06) (8572. CASH FLOW FROM OPERATING ACTIVITIES Rupess in Lakhs Net Profit before Taxation Add .99) (5503. Miyajiwala V. 2008 General Manager .85 (1108.09) (2426. 15th May.35 28.40 (12755.53) Nil (2041.11 500.73 Nil (13701.06) 4076.77 (8296.83 3218.87 12975.61 95.01) 28876.32) (1117.56) 10439. For and on behalf of the Board Chairman Managing Director Directors Ishaat Hussain A.53 3423.46) 292.79) 13399.89) 102720.65) (1432.15) 0. P.

00 10000.85 27. 4.20 260.00.48 208.83 SCHEDULE ‘B’ : RESERVES AND SURPLUS Rupees in Lakhs 1.90 3306.100 each TOTAL 2.00 10000.52 125.740 Equity Shares of Re.1 each Less: Calls in Arrears TOTAL 6000.52 125. AUTHORISED 60.00 5759. SUBSCRIBED AND CALLED-UP 33.10 As at 31-3-2007 Rupees in Lakhs 11130.00 3308.28 11130. 8. 6.00.66 451. 10.47 72.05 155.00 4000. 11.00 825. 12.47 44019.16 SCHEDULE ‘C’ : SECURED LOANS Rupees in Lakhs LOANS FROM BANKS TOTAL 7374.02 58. 2008 SCHEDULE ‘A’: SHARE CAPITAL Rupees in Lakhs 1.66 54415.10 7374.02 3306.28 SCHEDULE ‘D’ : UNSECURED LOANS Rupees in Lakhs SHORT TERM LOANS AND ADVANCES From Other than Banks TOTAL Nil Nil As at 31-3-2007 Rupees in Lakhs 27.81 1.39 399. Schedule ‘M’) TOTAL 624. SECURITIES PREMIUM CAPITAL RESERVE CAPITAL REDEMPTION RESERVE CAPITAL RESERVE ON CONSOLIDATON GENERAL RESERVE STAFF WELFARE RESERVE FOREIGN PROJECTS RESERVE SURPLUS IN PROFIT AND LOSS ACCOUNT FOREIGN EXCHANGE TRANSLATION RESERVE SPECIAL RESERVE ADJUSTMENTS ON CONSOLIDATION LEGAL RESERVE (See Note 3. 1 each 40.70 871. 5.08.85 2.70 872.37 As at 31-3-2007 Rupees in Lakhs 624.000 Equity Shares of Re.59 1.17 356.00 575.95 39067. 2.00 3308.85 1. 7.SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH.62 155.65 193.00 4000.90 29615.000 Redeemable Preference Shares of Rs.00 7129. ISSUED. 9.00.84.85 81 . 3.95 As at 31-3-2007 Rupees in Lakhs 6000.

05 117.54 Nil 1.41 57.74 Nil Nil Nil Nil Nil 440.64 Nil 149. the lease period being fifteen years with a renewal option. Manufacturing Rights & Technical Know-how Nil Nil 737.94 726.79 8.81 641.16 237.58 33.67 Lakhs (31-3-2007 : Rs.85 2.71 Nil 106. Freehold Land 3.91 392.29 6199.44 16009. 255.662.05 On Impair. Buildings (See Notes c.01 33.ment Difference March 31.34) (28512.90 1155.26 Previous Year (31632. d & e below) 1599.51 14725.39 17012.34 72. Capital Work-in-Progress [Including advances against Capital Expenditure Rs.40 513.65 Nil 1.13 565.93 728. (e) Buildings include Gross Block Rs.44 9377.97 944. (b) Exchange Difference in column (5) and (12) above relates to the opening balances. March 31.79 Lakhs (31-3-2007 : Rs.72)(6688.78 2194.10.77 8710.88 Nil Nil Rupees in Lakhs Rupees in Lakhs Rupees Rupees Rupees Rupees in Lakhs in Lakhs in Lakhs in Lakhs Rupees in Lakhs 433. Furniture & Fittings 6.73 593.41 6459.106. (c) Includes Rs.38) 1971. .03 Nil 4.85 159.35 8456.71 Lakhs (31-3-2007: Rs 541.64 605.662.21 Nil 121.59 5.71 351.62 Nil 930. Leasehold Land 2.48 0.90 13787.82 Nil Nil Nil Nil Nil 1004.99 Lakhs (31-3-2007 : Rs.74 37.13.92 19.55 998.83 4151. tions (See Note 2008 2008 2007 ‘b’ below) (7+8+9(6-13) (1-7) 10+11-12) (10) (11) (12) (13) (14) (15) Rupees in Lakhs 438.69 443.77 Nil 303.69 6.91 Nil 2330.26) (3335.54 18984.Nil) (net book value) being leasehold improvements.41 8531. (d) Includes factory building of Rs.93 1284. The lease is renewed annually.44 Nil 867.11 52. Vehicles 82 1004.VOLTAS SCHEDULE ‘E’ : FIXED ASSETS (At Cost or Book Value Less Depreciation) GROSS BLOCK AT COST OR BOOK VALUE DEPRECIATION NET BLOCK Annual Report 2007-2008 Particulars For the Year As at Adjust. March 31.19 Lakhs) (original cost) and Rs.26 Intangible Assets : 7.05 (37.59 231.43 524.60 4.87 Nil (45.15 Nil Nil Nil 1.43 16126.55 7415.9.1742.11 83.Additions Deduc.34 Nil 6.92 Lakhs (31-3-2007 : Rs. ments 2007 (See Note (See Note 2008 2007 (See Note ‘a’ below) ‘b’ below) ‘a’ below) (1+2+34-5) (1) (2) (3) (4) (5) (6) (7) (8) (9) Rupees in Lakhs Nil Nil 10.59 8.01 1242.Exchange As at Up to AdjustMarch 31.71 0.78 Lakhs) (original cost) and Rs. Plant & Machinery 14656.33 1121.255.76 14620.57) 9.47 1770.89 Rupees Rupees Rupees Rupees in Lakhs in Lakhs in Lakhs in Lakhs 440.33 997.Nil (31-3-2007 : Rs.98 Nil 726.17 Rupees in Lakhs 6.05) 1971.76 Rupees in Lakhs Nil Nil 11.97 Nil Nil 6. ments tions Difference March 31.58 888.04) (1556.97.33 Lakhs (31-3-2007 : Rs.26) (16420.21) (14725.90 Nil 1669.93 33604.25) (278.26 31632.32 2071.97 Nil Nil 19.63) (205. March 31.00 116.68) (4435.40 497.32) (13787.01 1003.97 Nil 567.82 159.9.Exchange Up to As at As at Deduc.14) (77.74 7046.92 Lakhs) which has been held for sale and the estimated realisable value is higher than the net book value.46 Lakhs)] Notes : (a) Previous year’s figures represent assets and depreciation of Weathermaker Limited which became a subsidiary in the previous year.03 66. Software 28512.06 Nil Nil Nil 100.68 142.42 85.99 624.79 Lakhs) and Accumulated Depreciation Rs.65 1245.21 Lakhs) (net book value ) of factory building constructed on leasehold land.

40 12967.76 25852.63 1225.37 1878.75 2.39 2764.49 22728.63 1656.25 25193.21 12479.78 TOTAL 15272. Schedule ‘M’ ) Subsidiary Companies (Unconsolidated) (See Note 2(b).83 26313.30 24635.33 16766.59 3584.80 51229. SUNDRY DEBTORS CASH AND BANK BALANCES INTEREST ACCRUED ON INVESTMENTS LOANS AND ADVANCES – Deposits with public bodies.48 164.90 17456.43 SCHEDULE ‘G’ : CURRENT ASSETS.SCHEDULE ‘F’ : INVESTMENTS (at Cost) Rupees in Lakhs 1.52 460.56 51211.56 19113. 3.57 2.04 0.61 57025.70 2298.60 63984.62 15217.59 10800.79 0.87 161535.41 538.99 274588.73 134089.59 3388.18 166303.25 48588.68 14438. Schedule ‘M’) Shares (Quoted) Shares (Unquoted) (See Note 4(c).45 12297.79 0. LOANS & ADVANCES Rupees in Lakhs 1.61 48.34 1898.75% Tax Free US 64 Bonds TOTAL LONG TERM INVESTMENTS CURRENT INVESTMENTS Units of Mutual Fund (Unquoted) Government Securities (Unquoted) Other Securities (Quoted) TOTAL CURRENT INVESTMENTS TOTAL INVESTMENTS LESS: PROVISION FOR DIMINUTION IN VALUE TOTAL 0. 5.15 164.55 83.79 9547. Schedule ‘M’) OTHER INVESTMENTS Shares (Quoted) Shares (Unquoted) 6.01 30018.69 As at 31-3-2007 Rupees in Lakhs 119.64 456.76 9502. others – Other advances – Advance payment of taxes (Net) Less: Provision for doubtful advances 83 .01 27030.01 As at 31-3-2007 Rupees in Lakhs 17.63 1401.04 0.07 12935.15 15803. 22644. INVENTORIES STORES AT OR BELOW COST STOCK-IN-TRADE : (a) Raw Materials and Components.31 247558.83 1910.61 119.62 186728.55 43. at the lower of Cost (Less: Written off for obsolescence) and Realisable Value (b) Work-in-Progress Less: Amounts Invoiced (c) Finished Goods at the lower of Cost (Less: Written off for obsolescence) and Realisable Value Rupees in Lakhs 21. LONG TERM INVESTMENTS TRADE INVESTMENTS (See Note 4. 4.09 3.31 63963.73 0.96 531.

21 1092.91 111792.59 521.73 1408. 7. 8.96 38. PROVISION FOR TAXATION (NET) PROPOSED DIVIDEND PROVISION FOR CORPORATE DIVIDEND TAX PROVISION FOR TRADE GUARANTEES (See Note 5 .63 26748. Schedule 'M') PROVISION FOR POST RETIRAL MEDICAL BENEFITS TOTAL (B) TOTAL (A) + (B) 3959. 2008 SCHEDULE ‘I’ : OTHER INCOME Rupees in Lakhs 1.01 9370. 12.34 2644.66 Nil 76. 5.62 21685.59 508.10 12.37 Year ended 31st March.41 2710. 10. 6. 2007 Rupees in Lakhs 1492.94 126197. ACCEPTANCES SUNDRY CREDITORS ADVANCE PAYMENTS AND DEPOSITS RECEIVED : (a) (b) 4. 9. 2. Miscellaneous Income Profit / (Loss) on Sale/Retirement of Fixed Assets (Net) Profit on Sale of Non-Trade Current Investments (Net) Rent Received Difference in Foreign Exchange (Net) Adjustment in respect of previous years (Net) TOTAL 1214.38 2034.68 84 . Schedule 'M') PROVISION FOR COMPENSATED ABSENCES PROVISION FOR PENSION PROVISION FOR GRATUITY PROVISION FOR CONTINGENCIES (See Note 5.77 2083.45 3308.77 3009. 4.22 53.68 147882.09 17927.04 4466. 5.VOLTAS Annual Report 2007-2008 SCHEDULE ‘H’ : CURRENT LIABILITIES AND PROVISIONS Rupees in Lakhs (A) CURRENT LIABILITIES 1.40 1320. 3.55 3285.62 1908.16 4074.20 2008. 3.94 759. 13. (B) From Customers / Others Against Unexpired Service Contracts 47569.68 Nil 130.16 27725.39 977.22 2890. 14.07 OTHER LIABILITIES INTEREST ACCRUED BUT NOT DUE ON LOANS TOTAL (A) PROVISIONS 6.18 9.42 Nil 3321.76 949. 2.67 48890.85 562.68 SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH.69 3954.73 2155.33 1991.35 63972.47 Rupees in Lakhs As at 31-3-2007 Rupees in Lakhs 8502. 11.51 93864.98 54338.67 5119.

2007 Rupees in Lakhs 122226.93 1464.43 173.83 561.27 85 .71 Lakhs (2006-07 : Rs.68 212747.08 4.12 Audit fees payable to Branch Auditors Audit fees payable to Cost Auditors Legal & Professional charges Other expenses (See Note 11.79 22564. Wages and Bonus Company's contribution to Provident Funds and other Funds Provision for Gratuity Welfare Expenses 26336.38 879. 21. 10. Telex & Telephone Auditors' Remuneration (a) (b) 20. 16.32 406. manufacture and services Stock-in-Trade per 31-3-2008 Cost of Sales and Services ( 1 + 2 + 3 . 18.06 Nil 239853.28 448.17 11304. 22.83 108.09 1.05 187815. Salaries.48 1219.23 48.75 Rupees in Lakhs 212747.10 0.74 539.43 1802.39 1850. 26. 12.29 13.39 1751.45 9212.SCHEDULE ‘J’ : COST OF SALES.22 1513. 15.78 2353.05 NiL 332615.15 384.38 Forwarding Charges Commission Advertising Rent paid Less: Rent recovered 11.40 572. Postage.51 564. 5. Audit fees including reimbursement towards expenses Rs.67 41.28 537.28 63. 14.89 121.52 151. 9. SERVICES AND EXPENSES Rupees in Lakhs 1.40 425. 17.50 1439.46 1478.73 4343.63 294987. Stock-in-Trade per 1-4-2007 Stock-in-Trade taken over on acquisition of Subsidiary Purchases and cost of jobs.77 25972. 19. 13.38 311521.73 1651.59 142.12 66. 2.11 150.17 4189.1. Rates & Taxes Insurance Stores Consumed Power Repairs to Buildings Repairs to Plant & Machinery Travelling & Conveyance Stationery. 24. 3.60 855.48 3774. 6. 4. 25.23 891.97 2040.82 Year ended 31st March.81 1578.51 2045. 8.61 233840.36 1102.4 ) Staff Expenses (a) (b) (c) (d) 7. Schedule 'M') Bad and Doubtful Debts / Advances Donation and Charities Net Loss on Sale of Fixed Assets TOTAL 24.22 1473.64 278184. 23.15 29909.70 1836.03 Lakhs) In Other capacity 72. 1.92 725.80 85.94 44.77 24.49 21.

Revenue items of such entities are consolidated at the average rate prevailing during the year and Assets and Liabilities are converted at the rates prevailing at the end of the year. The excess of cost to the Company of its investment in subsidiaries and joint ventures over the Company's portion of equity as at the date of investment is treated as Goodwill. 31st March. Auto Aircon (India) Ltd. 2006. intra-group transactions and unrealised profits or losses as per Accounting Standard 21 – Consolidated Financial Statements notified under the Companies (Accounting Standards) Rules. The Company and its Subsidiaries constitute the "Group". and The minorities' share of movements in equity since the date the parent—subsidiary relationship came into existence. PRINCIPLES OF CONSOLIDATION : The Consolidated Financial Statements relate to Voltas Limited ("the Company") and its subsidiary companies. 2008 except Saudi Ensas Company for Engineering Services WLL. joint ventures and associates and the Company’s holdings therein are as under : Name of the Company Country of Incorporation Ownership in % either directly or through Subsidiaries 2007-2008 Indian Subsidiaries : – – – – Simto Investment Company Ltd. Minority interest in the net assets of consolidated subsidiaries consists of : (a) (b) (viii) The amount of equity attributable to minorities at the date on which investment in a subsidiary is made.00 2006-2007 87 .00 100. joint ventures and associates. income and expenses.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. (under liquidation) Westerwork Engineers Ltd.00 51. All resulting exchange differences have been accumulated in a Foreign Exchange Translation Reserve. Interests in joint ventures have been accounted by using the proportionate consolidation method as per Accounting Standard 27 – Financial Reporting of Interests in Joint Ventures notified under the Companies (Accounting Standards) Rules. Investments in associate companies have been accounted under the equity method as per Accounting Standard 23 – Accounting for Investments in Associates in Consolidated Financial Statements notified under the Companies (Accounting Standards) Rules. The Financial Statements of the subsidiaries. 2007. liabilities. Universal Voltas LLC and Terrot GmbH where the accounts are drawn upto 31st December. Agro Foods Punjab Ltd. (under liquidation) 95. Weathermaker Limited. The list of subsidiary companies.00 51.51 100.e. associates and joint ventures used in the consolidation are drawn upto the same reporting dates of the Company i. The excess of the Company's portion of equity of the subsidiaries and joint ventures as at the date of its investment over the cost of its investment is treated as Capital Reserve. The Consolidated Financial Statements have been prepared on the following basis: (i) The Financial Statements of the Company and its subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets. 2006. (ii) (iii) (iv) (v) (vi) (vii) Minority interests share of net profit for the year of consolidated subsidiaries is identified and adjusted against the profit after tax of the group.00 100. 2008 1. 2006.00 95. Foreign subsidiaries and joint ventures of the Company have been classified as "Non Integral Foreign Operations".44 100. 2. after fully eliminating intra-group balances.

55 45.68 773.93 86 .61 398.49 528.65 Nil Nil (138. 2007 Rupees in Lakhs 2247.83 Lakhs)] Less: Interest received (a) (b) in respect of sales on deferred payment terms and other accounts On fixed deposits with Banks 182.57 752.92 Year ended 31st March. Less : Income from Investments (a) (b) (c) Trade Investments (Long Term) Other Investments (Long Term) Other Investments (Current) TOTAL 262. 6. Provision for diminution in value of Investments Cost of Voluntary Retirement Scheme amortised Provision for Doubtful Advances (Net) Provision for Contingencies (Net) (See Note 5 . 2007 Rupees in Lakhs 321. Less : 3.65 498. 5.91 968.58 176.06 809. 2.02 3019. Schedule 'M') Factory Closure Cost (See Note 8 . 4. 7.82 36.16 Nil 358. On fixed loans On other accounts [Net of write back of Rs.86 Profit on Sale of Property / Transfer of Development Rights/ Surrender of Tenancy Rights Profit on Sale of Long Term Trade Investments (Net) 2828.98 986. 8.00) 19.01 650.85 1108.06 1075.88) 247.20 10100.90 191.51 664.55 281.23 6963.73 (609.50 Rupees in Lakhs Year ended 31st March. 9.VOLTAS Annual Report 2007-2008 SCHEDULE ‘K’ : FINANCIAL ITEMS Rupees in Lakhs 1. Schedule 'M') Impairment of Fixed Assets Revision in Estimated Gratuity Liability at the beginning of the year (See Note 8 .96 7852.03 809. Nil (2006-07 : Rs.94) TOTAL 3158.91 1133.49 897.95 11.71 3136.59 77.85 3. 101.11 95.77 39. Interest Paid (a) (b) 2.87) (100.04 216.73 (108. Schedule 'M') 4.12 (898.21) SCHEDULE ‘L’ : EXCEPTIONAL ITEMS Rupees in Lakhs 1.

00 100.2006) Brihat Trading Pvt.00 26. value added tax and works contract tax but include excise duty.) Name of the Company Foreign Subsidiaries : – – – – – – – – – – – – Metrovol FZE VIL Overseas Enterprises B.06. Similarly.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.00 49. but commission earned on such sales is accounted for as part of sales and services. Muscat Saudi Ensas Company for Engineering Services WLL Agrotech Industries Ltd.00 Nil 49. have not been consolidated as they are under liquidation and the investments in the books of Voltas Limited are fully provided.f. [Refer Note (a) below] Notes: (a) The accounts of Brihat Trading Private Limited.00 49. Voice Antilles N.e. The preparation of the accounts requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including the contingent liabilities) and the reported income and expenses during the reporting period.V. Universal Comfort Products Private Ltd.00 33.00 49. (ii) SALES & SERVICES (a) Sales exclude sales tax.33 Isle of Man France United Arab Emirates United Arab Emirates 49. expenses.S.00 100.33 24.S. Naba Diganta Water Management Ltd.00 50. Weathermaker Ltd. Consignment sales are excluded from sales and services.a.00 Sultanate of Oman United Arab Emirates The Netherlands Netherlands Antilles Isle of Man Country of Incorporation Ownership in % either directly or through Subsidiaries 2007-08 100.00 37.00 Indian Joint Ventures : Foreign Joint Ventures : 3. 19. Westerwork Engineers Limited and AVCO Marine S.00 37. Germany 24.00 49. Lalbuksh Voltas Engineering Services & Trading LLC.a.00 33. Ltd.50 49. (b) The accounts of Agrotech Industries Limited have not been consolidated as it is under closure and the investment in the books of Voltas Limited is fully provided.00 100. SIGNIFICANT ACCOUNTING POLICIES: (i) The accounts are prepared on historical cost convention on accrual basis of accounting and comply with the Accounting Standards as notified under the Companies (Accounting Standards) Rules. (Under Liquidation) Universal Voltas LLC ETA – Voltas – Hitachi Plant (Jointly Controlled Operations) Associates : – – Terrot GmbH (w.V. (Under Closure) AVCO Marine S. The Management believes that the estimates used in preparation of the accounts are prudent and reasonable.00 50. 2008 (contd. an associate company were not available for consolidation.50 Saudi Arabia 49. the accounts of Agro Foods Punjab Limited. The operations of this company have no significant impact on the revenue.00 100. assets and liabilities of the consolidated accounts.00 50.00 100. Further results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.00 100. 1956.00 2006-07 100. 2006 of the Companies Act.00 50. 88 .

octroi duty and receiving/installation charges. 1956. except as under : (i) (ii) (iii) (b) (c) (d) (iv) Depreciation on furniture and fittings has been provided on the Written Down Value basis at the rates prescribed in Schedule XIV to the Companies Act. This reserve is not available for distribution. In some of the foreign subsidiaries and foreign joint ventures. claims and incentives payment are included in revenue to the extent that they have been agreed with the client and can be reliably measured. (iii) DEPRECIATION / AMORTISATION (a) Depreciation on all assets of the Parent Company has been provided on the Straight Line Basis at the rates prescribed in Schedule XIV to the Companies Act. When the current estimate of total contract costs and revenue is a loss. (vi) FIXED ASSETS Fixed assets are stated at cost less accumulated depreciation and impairment losses. (d) Long-Term Annual Maintenance Contracts : The revenue from maintenance contracts is recognised on accrual basis and advance received in respect of future period is accounted for as Unexpired Service Contracts. Own manufactured goods are capitalised at cost excluding interest but including excise duty net of CENVAT. In one of the Joint Ventures. Interest on borrowed money allocated to and utilised for fixed assets. an amount equal to 10% of the annual net profit is transferred to Legal Reserve in compliance with requirements of local laws. pertaining to the period upto the date of capitalisation is added to the cost of the assets. furniture. is recognised under the percentage of completion method by reference to the stage of completion of the contract activity. depreciation on tools. where the outcome can be estimated reliably. the cost of assets including intangible assets has been depreciated using the Straight Line Basis over their useful lives. Contract costs are recognised as expenses in the period in which they are incurred. the revenue from such contracts is recognised in proportion to the cost actually incurred during the year in terms of total cost after completion of such contracts. 2008 (contd. provision is made for the entire loss on the contract irrespective of the amount of work done. In case the actual cost incurred is higher than the billings. PROVISION FOR TRADE GUARANTEES Provision for estimated costs to be incurred in providing warranty services is made in the accounts in the year in which goods are sold or a long term contract is completed. as repairs and maintenance of such machineries depends on its utilisation and wear and tear which varies from year to year. Variation in contract work. such cost is accounted for immediately. Premium paid on Leasehold Land is amortised over the period of the lease. Intangible assets are amortised on the Straight Line Basis over their useful life. Where the outcome of construction contract cannot be estimated reliably. The excess of revenue over cost is deferred and accounted for as “Unexpired Service Revenue”. (v) LEGAL RESERVE In case of some foreign joint ventures.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. In case of Mining Equipment. 1956. contract revenue is recognised to the extent of contract costs incurred that probably will be recoverable. fixtures and office equipment is provided for over a period of four years and for motor vehicles over a period of three years. 89 . Revenue from long-term contracts. 1956.) (b) (c) Sales and services are accounted on accrual basis when the sale of goods or services are completed. depreciation on Computers and Vehicles has been charged at 20% and furniture on the Straight Line Basis at the rate prescribed in Schedule XIV to the Companies Act. The stage of completion is measured by calculating the proportion that costs incurred to date bear to the estimated total costs of a contract. In some subsidiaries. Manufacturing Rights and Technical Know-how have been amortised over 72 months and Software is amortised over 60 months.

cost being worked out on weighted average basis (except in the case of a foreign subsidiary. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. (ix) PROVISIONS AND CONTINGENCIES A provision is recognised when the Group has a present legal or constructive obligation as result of past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. if the carrying amount of these assets exceeds their recoverable amount. Other Deferred Tax Assets are recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets. Rents payable under operating leases are charged to income on the Straight Line Basis over the terms of the operating lease. Cost includes all charges incurred for bringing the goods to the point of sale. Current investments are carried at the lower of cost and fair value. transit insurance and receiving charges. (x) FINANCE LEASE Fixed assets acquired under finance leases are recognised at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. (xiii) TAXES ON INCOME Current Tax is the amount of the tax payable on the taxable income for the year as determined in accordance with the provisions of the applicable tax laws. such reversal of impairment loss is recognised.) (vii) INTANGIBLE ASSETS Intangible assets are stated at cost less accumulated amortisation. 90 . being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. where cost is determined on FIFO basis). The recoverable amount is the greater of the net selling price and their value in use. Deferred Tax is recognised on timing differences. (xi) INVESTMENTS Long-term investments are carried at cost less provision for any diminution other than temporary. (xii) INVENTORIES Inventories including Work-in-Progress are valued at cost or realisable value whichever is lower. including octroi and other levies. If any indication of such impairment exists. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. the recoverable amount of such assets is estimated and impairment is recognised. Contingent liabilities are disclosed in Notes to Accounts. in the value of such investments. The finance charge is allocated to periods during the leased term at a constant periodic rate of interest on the remaining balance of the liability. Work-in-Progress includes profits/losses to the extent recognised. 2008 (contd. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. With regard to construction contracts. When there is indication that an impairment loss recognised for an asset in prior accounting periods no longer exists or may have decreased. Deferred Tax Assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual certainty that there will be sufficient future taxable income available to realise such losses. (viii) IMPAIRMENT OF ASSETS The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment of assets.

Non-monetary items outstanding at the Balance Sheet date are reported using the exchange rate at the date of the transactions. 2008 (contd. The Present Value of future payments to employees opting for Early Separation Scheme (ESS) and the additional gratuity liability arising therefrom are charged to the Profit and Loss Account in the month of separation of employees. (xvii) EMPLOYEE BENEFITS (i) In respect of employees abroad : The cost of retiral benefits such as Gratuity and Leave Encashment are accounted on accrual basis and in accordance with local laws of the respective countries. Monetary items outstanding at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date and the resultant difference is recognised as income or expense. which is 91 . the liability for determined on the basis of an actuarial valuation carried out at the end of the year. Monetary assets and liabilities relating to foreign currency transactions remaining unsettled at the end of the year are translated at the year-end rate and the difference in translation and realised gains and losses on foreign exchange transactions are recognised in the Profit & Loss Account. (ii) In respect of employees in India : (a) Defined Contribution Plan Contribution to Superannuation Fund. the difference between the contract rate and the spot rate on the date of the transaction is charged to the Profit and Loss Account over the period of the contract. (b) (xvi) PRE-OPERATIVE EXPENSES OF NEW PROJECTS Directly identifiable preoperative expenses of new projects of capital nature under implementation are carried forward under Capital Work-in-Progress. There are no other obligations other than the contribution payable to the Superannuation Fund Trust. is made at pre-determined rates to the Superannuation Fund Trust and is charged to the Profit and Loss Account. The Company’s Contribution to recognised Provident Fund paid/payable during the year is recognised in the Profit and Loss Account. between the return guaranteed by the statute and actual earnings of the Fund is provided for by the Company and contributed to the Fund. (b) (xv) ACCOUNTING FOR VOLUNTARY RETIREMENT SCHEME (a) The cost of Voluntary Retirement Schemes / Retrenchment Compensation including ex-gratia and additional gratuity liability arising therefrom are charged to the Profit and Loss Account in the month of separation of employees. pending capitalisation. Actuarial gains and losses are recognised immediately in the Profit and Loss Account as income or expense. (ii) (c) Other Benefits The Company has a scheme for compensated absences for employees.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.) (xiv) FOREIGN EXCHANGE TRANSACTIONS / TRANSLATIONS (a) The foreign branches of the Group have been classified as “Integral Foreign Operations”. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yields at the Balance Sheet date on Government bonds where the currency and terms of the Government bonds are consistent with the currency and estimated terms of the defined benefit obligation. Past services are recognised on a straight line basis over the average period until the amended benefits become vested. if any. In respect of transactions covered by foreign exchange contracts. (b) Defined Benefit Plans (i) The Group’s liabilities towards gratuity and post retirement medical benefit schemes are determined using the projected unit cost method which considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. The shortfall. a defined contribution scheme.

73 (2644.12 Deferred Tax Liabilities Rupees in Lakhs 2486.43 3. (73.00 846. pursuant to an injunction order passed by the Court in Kanpur.00 450. 4.69 (2221.56 Opening Balance in Investment Add : Pre-acquisition Profit Add : Post-acquisition Profit for the year Closing Balance in Investment 5.73 (2950.01 Lakhs) (credited)/adjusted to General Reserve] 92 .59) The provision for Trade Guarantee is expected to be utilised for warranty expenses / settlement of claims within a period of 1 to 5 years.) (xviii) SEGMENT REPORTING The accounting policies used in the preparation of the financial statements of the Group are also applied for Segment Reporting. (c) Movement in Associate Investment – (Terrot GmbH) Rupees in Lakhs 148. which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis. 2008 (contd. Revenue and expenses.00 — As at 31-3-2007 Deferred Deferred Tax Tax Assets Liabilities Rupees Rupees in Lakhs in Lakhs — 2405.74) 100.01 — 1703. DEFERRED TAX ASSET / LIABILITY (a) Major components of deferred tax assets (Net) : Deferred Tax Assets Rupees in Lakhs — — 617.56 Nil 20.55 Lakhs is under dispute.00 (1225.59 (Nil) (783.12 1370.00 (875.00 (Nil) Rupees in Lakhs Closing Balance 4074.71 2006-2007 Rupees in Lakhs 140. CURRENT LIABILTIES AND PROVISIONS Provisions Opening Balance Trade Guarantee Contingency for tax matters Contingency for claim 2644.94) Nil (Nil) Reversal 336.00 2967. (b) As the title of ownership of shares costing Rs.00 — 5372.00 — 484.59) (Nil) (Nil) (783.48) 1225.77) 1125. 6.08 (518.00 — — 1038.00) Utilisation 2607.00) Additions 4373.01 — (i) (ii) (iii) (iv) (v) (vi) (vii) Depreciation Unabsorbed Depreciation Voluntary Retirement Scheme Unpaid Statutory Liabilities Provision for Doubtful Debts and Advances Provision for Contingencies Others Total Net Timing Differences [Net of Deferred Tax Rs.59 Nil Nil Nil 783. have been included under “Unallocated income / expenses”. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. Note : Figures in brackets are for the previous year.00 4529.81 4.00 — 1378.00 — — — — — — 2486.12 2043.00 — 769. 4.32 148.97) Nil (350.15 168. The Company had in 1998-99 transferred its beneficial rights in the shares of that subsidiary.00 1246. that it will not dispose of its investments in one of the subsidiary company.77 (2434.01 2405. 409.00) 783.89) Lakhs (2006-2007 : Rs. INVESTMENTS (a) The Company has pursuant to a loan agreement given an undertaking to Punjab State Industrial Development Corporation Ltd. the Company has not recognised dividend on this investment.

92)] 93 .51 (415.83) (293.36 — (177.98 (321.78 — — — — — — 295.92) [(1614.06 (106.02) (95.47 (1232. 2008 1. 4. 2. 2008 Funded status [Surplus / (Deficit)] Net asset / (liability) as at 31st March.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.30) [(626.48)] (1504.62) [(508. OPERATING AND ADMINISTRATION EXPENSES Staff expenses (in respect of employees in India) includes employee defined benefits as given below : Defined Benefit Plans .62) [(508.52 — 82.95 (21. 3.09)] (521. 3.91) — (—) 50.30) [(626.92)] (631. 2008 (3329.54)] 1824. Current Service Cost 2.59) 220.62) [(508.46) 71. 2008 2.03 — — — — — 8.45) 717.93) II Net Asset / (Liability) recognised in the Balance Sheet as at 31st March.32) 40. Present value of Defined Benefit Obligation as at 31st March.09)] (631.78 Deferred Tax Liabilities Rupees in Lakhs 295.47) — (—) (21.28)] 422. Fair value of plan assets as at 31st March.06) (1504.48)] (521. Interest Cost Expected return on plan assets Actuarial Gains / (Losses) Total expense Post Employment Medical Benefits Rupees in Lakhs Pension Plan Rupees in Lakhs 170. 4.16) — (—) (21.15 (28.54 (71.11 259. 2008 (contd.48) [(67.92) [(1614. Nil (2006-2007 : Rs.78 As at 31-3-2007 Deferred Deferred Tax Tax Assets Liabilities Rupees Rupees in Lakhs in Lakhs — 259.06) (13.36 66.09)] — (—) (521.92)] — (—) (631.25) (i) (ii) (iii) (iv) (v) (vi) (vii) Depreciation Unabsorbed Depreciation Voluntary Retirement Scheme Unpaid Statutory Liabilities Provision for Doubtful Debts and Advances Provision for Contingencies Others Total Net Timing Differences — (150.56 — — — 7.As per Actuarial Valuation on 31st March. 5.00) [Net of Deferred Tax Rs. 2008 1.78 — — — — — 145.30) [(626.65 (37. 2008 Gratuity Funded Rupees in Lakhs I Expense recognised in the Profit and Loss Account for the year ended 31st March.75 (219.) (b) Major components of deferred tax liability (Net) : Deferred Tax Assets Rupees in Lakhs — 145.43) 44.39) [(2846.42 Lakhs) adjusted to Profit and Loss Account] 7.78) 24.18 (157.

81)] 14. Expected return on plan assets Contributions by employers Actual benefits paid Actuarial Gains / (Losses) Plan assets at the end of the year Actual return on plan assets (2+5) — (—) — (—) 31. 2008 1.32) 40.09) 1994-96 8% (7.60 (62.13) [(469.07 (759.32) — (—) 50.01) (345.51 (415. Plan assets at the beginning of the year 2.48 (67.15 (28.01) (—) — (—) — (—) — (—) 508. Present value of Defined Benefit Obligation at the beginning of the year 2.09 (479.30 (626.81)] (3329.60) [(62. 5.92 (1614.78) 827.51) 24.75%) (7. 4. 6.75%) (7.62 (508.48 (1958.91) 31.46) (67.59) 220.62) [(508. 2008 1.75 (219.33) 521. 3.07 (759.75%) 94 .) Gratuity Funded Rupees in Lakhs III Change in Obligation during the Year ended 31st March.56) 1824. 3.18 (157.13) [(469.47 (1232.39) [(2846.47 (73.99 (6. Expenses as above (I) Employers Contribution Closing Net Liability VI Actuarial Assumptions 1.98 (321.09)] Pension Plan Rupees inLakhs (626.30) [(626.54 (71. 4. 7.50% to 5%) 8% Post Employment Medical Benefits Rupees inLakhs (508.01 (—) (31.54)] 1232.60 (—) (67. 4. 3.92) (367.95 (21.33)] (631.09) (479. 6.65 (37.02) 437.92)] — (—) — (—) 67.51) 717. IV Current Service Cost Interest Cost Actuarial (Gains) / Losses Benefits Payments Present value of Defined Benefit Obligation at the end of the year (2846. 3.73) 170.92 (367.60) (—) — (—) — (—) — (—) 626.84) 1614.01 (43.75% to 8%) 5% & 7% (3.51) 44.47) 21.06) 110. 2008 (contd.93) 67.33) 631.83 (293.75%) 5% (5.16) (21.00%) 8% V Amount Recognised in the Balance Sheet 1.28) 827.54) (2826.81) (345.75% (3.48) 1994-96 (Ultimate) 8% (7.33)] (521. 4. 5.32) 71. Mortality Table (LIC) 2.06 (868.75%) 8% Change in Assets during the Year ended 31st March.01) [(43.92) 1996-98 8% (7. Discount Rate Increase in Salary/Health/Care Cost/Pension Rate of Return on Plan Assets (7.81) 1504.05 (113.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.06) (13.75%) 3. Opening Liability 2.43) (31.22) 95.

97 Lakhs (31-3-2007 : Rs.99 Lakhs) Fixed assets under operating leases : Total future minimum lease payment under non-cancelable operating leases in aggregate and for each of the following future periods : As at 31-03-2007 Rupees in Lakhs 240.04 Lakhs (31-3-2007 : Rs. 20304. Factory Closure Cost of Rs. 11. 20709. Nil (2006-2007 : Rs. 151. Nil (2006-2007 : Rs.07 Lakhs (31-3-2007 : Rs. 4365. 238.97 330884740 6. 10. (d) Income tax demands in respect of matters : (i) (ii) Decided in Group’s favour by Appellate Authorities where the Department is in further appeal . Lakhs) Weighted average number of Equity Shares outstanding Earning Per Share (Rs.) . a joint venture company in India subject to requisite clearances from the Regulatory Authorities / approvals. the funding requirement and expenses.24 Lakhs) Claims against the Group not acknowledged as debts : 324.) (a) (b) 8. in that behalf.1723. LEASES (a) (b) Other expenses include lease rentals Rs.58 Nil Rupees in Lakhs Not later than one year Later than one year but not later than five years Later than five years 12. 1125 Lakhs (31-3-2007 : Rs. 2167.19 242. promotion and other relevant factors. the Group has a right to recover the same from a third party.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. EARNINGS PER EQUITY SHARE 2006-2007 Net Profit after Minority Interest and Share of Profit of Associates (Rs. The gratuity liability at the commencement of the year has been re-estimated by the Actuary at Rs. 752.08 Lakhs). The Actuarial Calculations used to estimate defined benefit commitments and expenses are based on the above assumptions which if changed would affect the defined benefit commitment's size.Basic and Diluted (Face value of Re. 225. 2. considered in the Actuarial valuation.28 Lakhs (2006-2007 : Rs.13 Nil In respect of various matters aggregating Rs.32 Lakhs (31-3-2007 : Rs.65 Lakhs) Other Guarantees given Rs. 2008 (contd.59 Lakhs) against which a provision has been made for contingencies Rs. In respect of a contingent liability of Rs.84 Lakhs (31-3-2007 : Rs. 95 .96 Lakhs).68 Lakhs) as an incremental liability.03 330884740 6.27 20157.40 237. The estimates of future salary increases.71 Lakhs) is the difference between the Net Book Value of assets and estimated Realisable Price of the assets of Hyderabad Unit.Rs.Rs.82 Lakhs (31-3-2007 : Rs. 4502. CONTINGENT LIABILITIES NOT PROVIDED FOR: (a) (b) (c) Bills and Letter of Credits discounted with Banks : Rs. seniority. such as supply and demand in the employment market. 142. a joint venture company in Saudi Arabia and 50% shareholding in Universal Comfort Products Private Limited (UCPL). Other matters . 466. 773. 1225 Lakhs). SECL and UCPL would become wholly owned subsidiaries of the Company.98 Lakhs). Upon transfer of aforesaid shareholding. The Company has taken the decision to purchase 51% shareholding in Saudi Ensas Company for Engineering Services WLL (SECL).09 10. take account of inflation. EXCEPTIONAL ITEMS (a) (b) 9. 400.1 per share) 20768.

05 7536.75 Lakhs).07 Unsecured Loans Nil 27.28 68. 40619. United Arab Emirates Naba Diganta Water Management Ltd.90 Loans and Advances 21214. liabilities.97 73. Advance paid against such contracts : Rs.85 Deferred Tax Liability 150.54 Other Income 83. Staff demands under adjudication : Amount indeterminate.06 959.20 73.63 Lakhs) on purchase of capital goods under EPCG license against future export obligations.73 EXPENSES Manufacturing and other Expenses Depreciation Interest Exceptional Items Taxes : Current Deferred Earlier years CONTINGENT LIABILITIES CAPITAL COMMITMENT 33098.57 67.25 Current Liabilities and Provisions 10946.00 177.24 18531. Nil (31-3-2007 : Rs.43 Lakhs) issued by Banks at the request of the Group in favour of third parties.18 17868. income and expenditure of the above joint venture companies / operations included in these consolidated financial statements are given below : 2006-2007 Rupees Rupees in Lakhs in Lakhs ASSETS Net Block (including Capital WIP) 2811.40 20572.45 1138. 2008 and its percentage holding is given below : Name of the Joint Venture % Holding Universal Comfort Products Private Ltd.86 Secured Loans 5374. Oman Saudi Ensas Company for Engineering Services WLL. for delay in delivery of goods : Amount indeterminate.10) 9472.25 330.14 4662.64 Current Assets 17257.31 Lakhs (31-3-2007 : Rs. 1745. (h) Liquidated damages. In respect of guarantees aggregating Rs.10 19.48 (0. Saudi Arabia Universal Voltas LLC.55 (27. Duty saved of Rs. 1152. 434.63 1145. Lalbuksh Voltas Engineering Services & Trading LLC. United Arab Emirates 50 49 49 49 26 37.95 Lakhs).65 48.61 219.80 Lakhs (31-3-2007 : Rs.5 The proportionate share of assets. Estimated amount of contracts remaining to be executed on capital account and not provided for : Rs. 2008 (contd.86 33. 1943.61 315.81 3083.85 23764. 14.) (e) (f ) (g) 13.03 96 .85 2915.02 9577. 19. 49793. ETA-Voltas-Hitachi Plant. except to the extent provided.17 LIABILITIES Reserves and Surplus 4102.25) 0.47 425.33 14655.97 17528. The Group has consolidated the accounts of the following joint ventures as on 31st March.43 INCOME Sale of Products and other Services 26543.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.77 Lakhs (31-3-2007 : Rs.

A ( Electro .) 15(A).77 164012.88 8945.52 7349.10 3213.A ( Electro .B ( Engineering Products and Services ) Segment .90 1082.55 11361.90 82593.71 5531.36) 24245.95 38371.B ( Engineering Products and Services ) Segment .78 Profit before Tax Segment Liabilities As at 31-3-2007 Rupees in Lakhs 65240.12 176.56 6847.C ( Unitary Cooling Products for Comfort and Commercial use ) Others 174486.91 Rupees in Lakhs 86007.83 41620.46 529.60) 16259.16 1024.58 18723.84 125523.17 11220.42 148032.27 22509.90 8180.85 30198.mechanical Projects and Services ) Segment .29 213183.80 19099.67 143828.01 Segment Assets As at 31-3-2007 Rupees in Lakhs 80773.66 2303. SEGMENT RESULTS (a) (b) (c) (d) Segment .16 59573.14 29615.18 93246.35 111969.97 (688.79 1986.70 Rupees in Lakhs 2006-2007 Rupees in Lakhs Less : Inter segment revenue Net Sales / Income from Operations 2.C ( Unitary Cooling Products for Comfort and Commercial use ) Others 11698.22 18353.93 Particulars (a) (b) (c) (d) Segment . 2008 (contd.mechanical Projects and Services ) Segment .77 9841.A ( Electro .04 320292. SEGMENT REVENUE (a) (b) (c) (d) Segment .17 129883.30) 30726.B ( Engineering Products and Services ) Segment .62 49171.85 (1609. Information about Consolidated Segments : Particulars 1.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.34 3738.C ( Unitary Cooling Products for Comfort and Commercial use ) Others Segment Total Unallocated Total Rupees in Lakhs 103327.98 257.91 (8163.19 15173.65 252673.55 35662.47 26308.23 165545.03 55348.69 97 .57 Less : (i) (ii) Interest Other unallocable expenditure net of unallocable income 498.mechanical Projects and Services ) Segment .

57 465.28 175.91 67.13 Non-Cash Expenses other than Depreciation Rupees in Lakhs 2641.55 2333.21 515.86 68215.62 78147.B ( Engineering Products and Services ) Segment .72 2909.46 1242.16 2006 .55 3720.04 1203.12 1087.2007 Rupees in Lakhs 1319.96 – 3720.91 472.72 86.96 15(B).96 – 2119.2007 Rupees in Lakhs 842.52 1632.33 85166. Information about Consolidated Segments (contd.mechanical Projects and Services ) Segment .82 273.96 5825.) : Capital Expenditure Particulars (a) Segment .90 1.09 232395.81 164012.) 15(A). 2008 (contd.94 2006 .2007 Rupees in Lakhs 441.C ( Unitary Cooling Products for Comfort and Commercial use ) Others Segment Total Unallocated Total Rupees in Lakhs 1343.68 5276.29 129883.61 63391.40 565.65 2909.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.71 2006 .77 2119.59 1556.08 87.98 3187.58 46459.43 122.63 3335.81 320292.46 2669.83 (c) 931.41 10.12 4151.02 3187.26 106.96 880.88 252673.86 Depreciation Rupees in Lakhs 605.09 469.14 925.68 67.67 178631.13 423.09 148.58 60.53 2730.69 1669.20 2980.61 (d) 102.75 (b) 531.70 86.A ( Electro .70 Rupees in Lakhs 2006 -2007 Rupees in Lakhs 98 . Information about Consolidated Secondary Business Segments : Particulars Revenue by Geographical Market India Middle East Others Total Capital Expenditure India Middle East Others Total Carrying Amount of Segment Assets India Middle East Others Total 97640.

71 (861.37) — (3.58 (170.47 (42.86) 54.51) 9.59) 217.56 (863. 2008 (contd.86) 54.15 (2.99) — (24. Associate Brihat Trading Private Ltd. (Under liquidation) Agrotech Industries Ltd.14 (353.29 (356.59) 217. Saudi Ensas Company for Engineering Services WLL Universal Voltas LLC Lalbuksh Voltas Engineering Services & Trading LLC Naba Diganta Water Management Ltd.a. Tata Sons Ltd.58 (170.47 (42.32) 0.60 (2.54) — 302. Terrot GmbH B. Key Management Personnel Mr.99) — (24.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. A.37 (9922.68) — (—) — (—) — (—) — (—) 9665.05) — (3.51) Sale of Goods [Refer 16 (c) (2)] 1.) 16.22) 302. AVCO Marine S.64) Service Income [Refer 16 (c) (3)] Sale of Fixed Assets [Refer 16 (c) (4)] Interest Income [Refer 16 (c) (5)] Freight Recovery [Refer 16 (c) (6)] Advertising Recovery [Refer 16 (c) (7)] 99 .64) — (—) 2. Soni (b) Related Party Transactions : Rupees in Lakhs Transactions Associates Key and Management Joint Ventures Personnel 9665.25 (—) — (—) — (—) — (—) — (—) — (—) Promoter Total Managing Director Promoters holding together with its Subsidiary is more than 20% Holdings and/or agreements in conjunction with group companies Relation Shareholding of the Company on its own or along with subsidiaries exceed 20% Purchase of Goods [Refer 16 (c) (1)] — (—) 5. (Under closure) C. Joint Ventures Universal Comfort Products Private Ltd. Related Party Disclosures : (a) List of Related Parties and Relationships : Party A. D.S.37 (9922.

13) 464.99 (—) — (—) Tata Brand Equity [Refer 16 (c) (11)] — (—) Interest Expenses [Refer 16 (c) (12)] 21.82) 61.52) 1816.08 (—) 96.85 (61.81 (22.48 (0.60) 710.44) — (—) — (—) — (—) 141.49) Warranty Recovery [Refer 16 (c) (17)] 24.06) Debit Balance Outstanding as on 31-3-2008 [Refer 16 (c) (18)] Credit Balance Oustanding as on 31-3-2008 [Refer 16 (c) (19)] Note: Figures in bracket are of previous year.85 (61.47 (858.30) 39.31 (14.79) 24.23) 21.00) — (828.44) 96.47) Other Operating and Administration Expenses Received/Receivable [Refer 16 (c) (13)] Other Operating and Administration Expenses Paid/Payable [Refer 16 (c) (14)] 8.52) 2281.18 (364. 2008 (contd.27) 100 . 39.49) — (—) — (—) — (—) — (—) — (500.05 (109.81 (22.30) — (—) — (—) — (—) — (—) 0.00) — (828.40 (1882.13) — (—) — (—) — (—) — (—) Promoter Total Commission Received [Refer 16 (c) (8)] — (—) — (—) — (—) 464.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.47) 8.82) Refund of Intercorporate Deposits Placed [Refer 16 (c) (15)] Provision for Debts and Advances Due as on 31-3-2008 [Refer 16 (c) (16)] — (500.29 (—) 464.60) Provision / Write off of Debts and Advances — Reversal [Refer 16 (c) (9)] Remuneration Paid / Payable [Refer 16 (c) (10)] 710.) (b) Related Party Transactions (contd.56 (0.81 (49.18 (858.99 (—) 141.18 (364.23) — (—) 0.05 (109.50 (1538.31 (14.81 (49.90 (343.) : Rupees in Lakhs Transactions Associates Key and Management Joint Ventures Personnel 61.

4. Service Income Universal Comfort Products Private Ltd.58 170.64 54.18 364. Interest Expenses Universal Comfort Products Private Ltd.85 61. A.65 – – 9270.59 – 24.86 – 3. 6.47 464. 10. Soni 11.60 217.47 42. Tata Brand Equity Tata Sons Ltd.SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH.99 300. 21. Freight Recovery Universal Comfort Products Private Ltd.60 841. Commission Received Terrot GmbH 9.) (c) Details of material (more than 10% of the total related party transactions of the same type) transactions with Related Party : Rupees in Lakhs Name of Party Transaction Value Transaction Value 2006-2007 1. 8.17 2. 5. A. Advertising Recovery Universal Comfort Products Private Ltd. 3.Reversal AVCO Marine S.05 109. 12.81 49. 2.23 141. Purchase of Goods Universal Comfort Products Private Ltd.68 75. Interest Income Universal Comfort Products Private Ltd. Sale of Goods Universal Comfort Products Private Ltd.77 – 277.a. 2008 (contd.83 9714. Soni Tata Sons Ltd.99 – 61. Sale of Fixed Assets Universal Comfort Products Private Ltd. Remuneration Paid / Payable Mr.62 101 .S. Provision / Write off of Debts and Advances . 7. Universal Voltas LLC.69 1.25 5.13 710. Mr.

Provision for Debts and Advances Due as on 31-3-2008 AVCO Marine S.) (c) Details of material (more than 10% of the total related party transactions of the same type) transactions with Related Party (contd. Universal Voltas LLC. Refund of Intercorporate Deposits Placed Universal Comfort Products Private Ltd. Debit Balance Outstanding as on 31-3-2008 Terrot GmbH AVCO Marine S. N. 15th May.31 14.90 1457. Other Operating & Administration Expenses -Received/Receivable Lalbuksh Voltas Engineering Services & Trading LLC.30 36.45 1815. 19 Credit Balance Oustanding as on 31-3-2008 Universal Comfort Products Private Ltd. 16. Universal Comfort Products Private Ltd.S.a. Miyajiwala V.Taxation & Company Secretary Mumbai. J. wherever necessary. D. 17. Warranty Recovery Universal Comfort Products Private Ltd.11 – – 782.a. Soni Nasser Munjee N. 2008 (contd. For and on behalf of the Board Chairman Managing Director Directors Ishaat Hussain A. Malhotra – 1.S. 17. D.00 – 782.10 – 96. P. Other Operating & Administration Expenses -Paid/Payable Tata Sons Ltd. 14.34 0.82 – 500.VOLTAS Annual Report 2007-2008 SCHEDULE ‘M’ : NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH. M. Figures for the previous year have been regrouped. Tata M.52 6.79 Executive Vice President (Finance) General Manager . 2008 102 .) : Rupees in Lakhs Name of Party Transaction Value Transaction Value 2006-2007 13.47 343. 18. Khurody N. 15.75 0. Jhaveri S.45 464. Kulkarni Ravi Kant N.45 24. Tata Sons Ltd.81 22.

09 1.75 2383.85 324.855 @ Financials of WML are for the year ended 31st December.74 1210.42 273.Details of Subsidiary Companies as at 31st March.02 252.25 76. Capital 2. Profit/(Loss) after Tax 10.21 287. Reserves and Surplus 3.24 582586 515452 – 515452 154682 – 25934* 684.65 – 443. 2008 Simto Investment Company Limited (Simto) Rupees in Lakhs Metrovol FZE (Metrovol) # Rupees AED in Lakhs 2000000 4203344 12510487 6307143 – 2979136 707752 – 707752 500000 – 76.58 302.83 250.10.80 261.06 559952 352.74.84 VIL Overseas Enterprises B.19) – – 111.79 54. ** including interim dividend of USD 618913 (Rs. . Investments * exluding investment in subsidiary 6. 1 Euro = Rs.10.50 456. Total Liabilities (Debts+Current Liabilities) 103 5.00 618729 389.85. 2008 : 1 AED = Rs.39 772589 486. VOEBV. V.62.97. Equity Dividend # The foreign currency figures of Metrovol.48 312.25 – 1130. (VOEBV) # Rupees Euro in Lakhs Voice Antilles N.25 – 683.43 257. 246. V.94 41.19) – (10.39.00 1500000 11338485 22189012 9350527 – 6364167 4130823 – 4130823 – Auto Aircon (India) Limited (AAIL) Rupees in Lakhs Name of Subsidiary Company Weathermaker Limited (WML) #@ Rupees AED in Lakhs 161. Provision for Tax 9.10 1004. 1 USD = Rs.58 – 324. Profit/(Loss) before Tax 8.73 16.51 443. Exchange rate as on 31st March.63 289.47 155. 2007 : 1 AED = Rs.60 685865 892760 196895 390000 644892 632526 4602 627924 **800000 217.61 400000 159.67 Lakhs) paid during the year.40 1357. (VANV) # Rupees USD in Lakhs 152.99 1067. Turnover/Total Income 7. VANV and WML have been converted into Indian Rupees on the basis of appropriate exchange rates.34 25.54 – – (10. Total Assets (Fixed Assets+Current Assets) 4.33 366.81 78.65 – 1.58 97.26 **318.79 323.33 34503 21.35 355.10 1217.

Notes .

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