Indag Retread AnnualReport2011

8/4/2019 Indag Retread AnnualReport2011

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NOTICENOTICE IS HEREBY GIVEN THAT THE THIRTY-Sg:OND AN~UAL G~ERAL MEETING OF ll"IE MEMBERS OFINDAG RUBBER LIMITEDWILL B&H ELP ON TUESDAYTHE'9111 AUGUST 2011 AT10:00 A.M AT SAl INTERNATIONALCENTRE, PRAGATI VIHAR, LODHI ROAD, ~EW DEJ_H1-, 1 OOOSTO TRANSACTTtfEFOLLOWING BUSINESS;RDINARY BUSINESS

t , To receive, consider and adbpt the Audited prom and Lass Account for the year ended 31st March 2011 and theBalance Sheet as on that date, together with the Reports of the Board of Dlreetors and Auditors thereon,

2. To appoint a Director illplace of Mr. R. PSrT;Imeswsr, wha retires by rotation and being ellgible offers himselHerre -appe tn tment ,3 . T o appelnt a QTrector 1 1 ' 1place e f Mr .S .L.K l1emka , who retires b y rotation - and be in g eHgible offers himself forre-appointrnem.4. Todeclaredividand.5. To appoint MIs. $,A.8atliboi& Cel11pany, Chartered Accowntqnts'a5 AU!;lltors of tn e Company and to fix theirremuneration.

SPECIAL BUSINESS6. To consider and rf thought fit, to pass with or Without moditlcallon the foilowing resolution as a SPECI:ALRESOLUTiON:RESOLVED THAT p ursu ant to the provlelcns of Section 196, 269. 309, 310, read with schedUle XIII and otherClPp l lcable prov is iO lls , Ifa ny; of the Companies Act, 1956. consent of the members be aAd is herebY a.ocorded ferre -appoln tment and remuneration of Mr.K.K.Kapur as Whole- l ime DkectQr 'designated as C hie f E xecutiveOff icer) o{ the Company for a per iod 'O f five years with ef!et from June 1, 2.011 who has attained the age of 73years, ~pon 1I1eterms and oondit ions & re m un e ra tja il a sse t o ut below. with the I1berl.yto the Board 01 Oirectafs toalter-and varY the tSfl1'lS& G~nditj(;>nsther-ela ill such manne r as rl'lay be agree~ 10betweerrtj1e Board of Dlrect0rsand Mr .K . .K .Kapu r.(A) The Whole lIrpe DirecteT shall control daY"-to-day affairs of the Company and its business affairs subject toth e WltifTlatesupervision and control of theeoard ot Direotors.(8) PeriOd of Agreement: Fiv~ Years w.e.f. June 1,2011.(C) REMUNERATION

Fixed Sa~aryComponent1) Salary: Rs..a, 00,000/- p.ermanth2) Heuse Rent Allowance:3) PerC jul si tes : Pe rQu i~ ites will be allo~ed In addition tq s_arary restricted Ie an amount equal to the AnnualSalary or Rs.SUlOal per annum, whichever is less. For this purpose, perquisites are classified into threecateqortes, Cat~ory-A. category.B and oategory-C and cellingsthall apply only to category-A.4) The rernuneratlcn wUIbe increased every yaev at the rate ofRs.50, 000/- per month.

Variable Salary Component5) Bonus: The Whol.e-!rme Director will also be entitled to profit sharing bonus,at the rate of 2% ofprofits caiGuta1ed as p1Grlh90prOvisienso f section 349 and 350 6f ths Companies Act, 1956. ,

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,INDA,GrClassification of Perquisites:Category ALeave Travel CGneassicm: Reil1lbumement towards 1he-expsl1sesincurred. QYhim and his fa mily on leave tr avel once

in a ye.ar fer an WTlej,Jnl not exeeeding Rs. 76,000 t-per annum.Medical Expenses: Reimbl::.ll'SE!1'fle'ri.tow ard s the m ed ica l e xp en se s incurred on fi'lms!lf or on h is " fam i ly t onan

amount no1mtceedjn~ Rs.15, 000/- per annum.Category'SCClmpany's contr lbu . trcm to Provident Fund, Superarllluation fund or annuity fund to the extent under theo lnooms TaxRUles, 1962.Gratu it Y payab le sMail not exceed f ifteani:lays salary for each com pleted year of s erv ic es o rp art thersof Inexcess ofsix months, subject to a ceilIng as per Payment of GraltJfty of Act 1972. For this purpose, heowlllibe deemed to havebeen in ecntinuouseervlee o f th e cornpanyslnce 9th Apri~2001.CategoryCThe-Company shall provide c a F w ith d ri" ,e r and teleph'Onefacillty-attheresldenee oftheWhole t im e D irector .Notwithstanding anything to the c on tra ry h ere in . c on ta in ed , Wh ere in any fnancial yeqr durin!;lthe tenure of M r. K KKapur asWhole -T im e D ire oto r, th e C omp an y'] n cu rs lo ss es o r its p ro fits a re inadeqllate, th e Oornpany shalillay t~Mt. KK K ap ur, th e a bo ve re l]lu ne l'a ijo n by way of Fixed sa la ry, P erquisite s, a llow an ce s a nd othe r benelits payable as aminimum remunera tio n, s ub J ee f tacomplyiAg wi th restr ia t ions I r eculr er nen ts 1n th is r ega rd under relevant provisten.ofth e GompaniesAcl. ; 9 56 a nd re la te d statutory reguJaltCl lns.OtherTerms and conditionS":

1) The W hole Tirna OJrestor shall not beco rne in te re s ted or otherwise c0neern~d directly o r th fG lu gh M i$w i fea n dfo r m in er children in a ny buyin !!! a nd se llin g a ge ncy a t the C om pany in M ure with om the. pr io r .apf' lro li a l Q fth e B oa rd a f D ire oto rs or subjaGt10 sueh o th er approvals as m ay be-consldered'necessary.

2) The Whole Time Diremor shall n ot be entitled to fe es paMable to D ire cto rs fo r attendance at Beard Meet ingsand of aUCommittees appointed bytha Board.

3) The Agreement m . w h .e t er rn lna ted b y either party by giving to 1he olher one-month not ice of suchtermination oron e m on th salary in l ieu_thereof.at the COr"f1pany's option; which may be given a t a ny time. TheWtlOll! lcTrrne Direc!orwiH n Q t be-.entitled to anyeom pansatle l'l fe r loss of office due 10 te rm in atio n u nd erSeetion 3118o f th e Company Act, 1956 o r o the rw ise .

4} The W hole Time D lrecter Shall exercise such powerandlunction and on such term as theoBoard of Ellractotsof the Company may ptesoribe from time to time, it being agreed alild understood the th e Board sha ll h av eIhe -powe r to a lte r modify, revokeor w[1hdr awa ll o rany of the powers so eonterted.~) The W hO le Tim e O ireqter sha ll be liable to retire by ro ta t ion,

Fo~and on behall of the Board C lf01r~ersN ew D elh iApril 18.2011

Manall O.8ii1aniCompan y Se cre ta ry

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/'INDAV/NOTES

A MEMBER ENTiTlED It;l ATTj::ND A~O VOTE ATTHE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTENDAND VOTE ON A POLL INSTEAD OF HIMSELf AND A PROXY NEED NOT BE A MEMBER OFTHE COMPANY.PRGXIES,IN E>RDERTO BE EFFECTIVE, MUST BE RECEIVED ATTHE REGISTERED OFFIOE OFTHE COMPANYNOT LESS THAN FQR'rf-EiGHT HOURS I~EFORETHETIME FIXED FOATHE ANNUAL GENEA:h>LMEETING.The RE!gster"OfMe""bers and ShareTransfer Beeks 01the Company Will rarnaincIQ$edfrom1"'1 Allgust2011 to 9 - 1 1 1 August2011 (botl1 crays Incl~ rve). .Members/Pr()xies must brlhg thQAttenaanc(\tSl ip_ouly filled imfor attending the meeting and hand Itoverai the ent i 'a.ncedWlys g n " S q .Members desiring a n y lnformaJjpn 0'f1the ApcQunts are required towrite to Ihe company at it s Registereq Offi~e glv11il9atleas! seven days lime before the date of the Annual Genera,l.Meefjhg to enable tile Managemenl to collectand keep,thainformation ready.Members are requested t o bring their copy C if Annllal Report wllh them, as th e same will not be suppli;e(! agaIn a,llhem eeting as a measUre e l econpmy.Pursuant t" O the prohibition' Imposed vide Secretarial Standard an General Meetings (55-2) Issued by ICSt nogJftslcoUpon will bedlstr1buled at or In connection with the meetll1g.DETAILS OF DIRECTORS SEEKING APPOINTMENT' REAPPOII'4TMENT ATTHE FORTHCOMING ANNUALGENERAL MEETING(IN PURSUANCE OF CLAUSE 49 OFTHE USITNG AGREEMENT)Name of Directors SM. R. Parameswar Shri S.LKhemka Sl1ri KKKapurDale of Birth 17 T1 1 May ~9_33 1l' Janua_ry1927 15 D October 1937Oafe of AppOintment 2.71DAprii 19S5 Since 9'" April 2001

Ineo(Q_oratianPost G ra duate (H is to rY ) Graduate - Postgraduate inIndian Audi t and MathematicsQualifications AcCGunts Service - Member of the InstiMeof Cost a(ld Works

, Accountants 01Indialisl of outside Direc orship .held on 31 si M arch 2Q 11 Nil N il Nilreumnar 01 snares nero Inth e o om p an y N i l Nil Nil

Statementttl Section 173(2) of the C om panies Act. 1956)No.6: Appointment ofWhole-time Director, KKKapur has been re-apr;lointeclas aWl:\o!e-,limeDlr~or of th&e~mpany by the Beard of'f3ireolOrs with effecttiolll June2011. [or a~rla"tJ of Ive years1 pursu~nttothe proV1sens of the Co.mpanLes Act, 1%6.. K. K . Kapur was Initially agpolnted asWhole Tlrne DIrector on gj"Apri l 2001, Thereafter, his term. Q f offIce was renewed in200a, 2004, 2005 and 2008. .r.K.K.Kapuf. aged 73 YBarS, ls iii post-gradualEi in Mathematics am! a Member of tila InsUtue of Cost and WorksC.iJlJl1,at)~sJ India M[.K.K.Kapuf has an experlenee of over 50 years and has se:~ve.dn . various capacities with Steelthority of Ihdia Um~d. Ga~Al,Ithority Qf h;dlalimited and Emon Inola.

has retired from the office of Cf la i r! 1 ia . t: 1 & Managing Direclorof Gas Auth01'i ty of India ,'~ U i E I ye~r 1996,ar.eafterserved as Managing Dl~eclo~of Enron India (JlJ.G)i f f theyeat 1998.sen tly . M r .K .K_Kap l. J r rsnota,dlrector on thee89a~d:of aflYother company ora memlimrichafrman of i lnyCii ther Commiltee.t~rms &' CQn.dlt i"Qns of aepelntrnent & , remunerat lon of Mr.KK.Kapur a.s a WI i. ,o le -t ime D l re e to r areoffl.lined In theolution plaoed before lhemem~rs.e A,emuneratlon Commlltee andthe: Bo a td of iJlreetors 11"1heir mee~ng.sdaled 1 a '" A .p rll 2.011 aJ;lproved the terms ofnt ancl.reml.lneratlon ot M r .K KKap u r . .spec~a1l'eSf)lutionas sel out in Item no. Ii) of In e anl"leXednotlce is,,1Mretore rseommsnded for your approval. The BoardthaUl would be in ihterest of tIrIe Company te appoirrt Mr.K K Kapur as th~Whole- t ime Directorofthe Company.ept Mr.K..KKapur, [10 other director Is interested In the proposed resolution.0f th e te rrn s of l :Wp".ointrnentaJ:"lt i mernorandom o{ lntereS,\.p l ,Jrsuam Ie Section 302 of the Cotrtpanlas Aot, 1956 has-eady been sent to all the Memb~ ql the C Q lJ lp a r w . For and on behaJt of the Board oTOjrootorSri l 18, 2011 Menali [}.BiJlaniCompany$ecretlUY3


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"NDAG'DIRECTORS' REPORT

T oTHE MEMBERS,Your D i i' e .c tots .a r e p leased to p re se nt tlile 3 2 11 "A r'ln w a lR e p or t t og e th e rw lth t he Audite d 'S ta temeot o f A o counts of th eC om pa ny fo rth e a cco un tin g yea r e nd ed M arch $ 1,2 01 1. M ana ge me nt's d iscu ss ion a nd A na lY l"is has b ee n Includ edasp a rt of t his re p or t,ANANCIAL RESULTS:Particulars 2010-11 2009-10(Rs.in lacs) (Rs,in lacs)S ale s a nd O pe ra tin g In GOm~ 15027.62 11213.80Prof it be f0 re In ta re s t & D~precia l ion 1670.22 13915.41F in ance Ex r: en ses 112.37 41.12Prof it be fo re Dep reo ia ti 011 1557.85 13S5.29Depfeqiat ion 193.27 163.27Rrof it be fore tax 1364.58 1192.02Profit aft.ertax 1075.25 1157.36lh te rlm D iv id end 78.75 78.75P rop os ed F in a l D iv id e nd 131.25 131.25-

OPERATIONAL PERFORMANCEDu rIn g 'tile y ea r u nd er re vie w y ou rc orn pa ny h as achieved a tu rn ov ero rR s_ 15 02 7 cro re s a s a ga lh st R s. 1 12 .1 3c ro ra sIn th e preVious yea r. Th e O pe ra tion al P ro fil. be fo re m ak in g p rov is io n for iflterest and dep tecia tjon , am oun ted toRS .1 6.7 0 c ro re s a s B a in st R s. 13.96 crores inth e p re vio u s y ea r.T he ye ar sa w u np re ce de nte d in cra ase in th e p rice s o f r a w ma te ria ls in th e se co nd h alf. T he p rice of N atu ra l R ub be r a swell a s Sy nt he tfu Rubber inGreased by OV6150% betw een O cto be r 20 10 to F ebrua ry, 2 01 1. As a rsault We werec omp elle d to in cre as eth e p rie & -Q f6 urp ro dU o ts o n me re llia n o ne o cc as io n d U rin g th is pe rto d, T he re w as c on sid era bleconsume r r es ls ti! :n cew .hi ch ,a d ve rse ly a ,f fe c ;t ed lf le d emand .D t . ! e to em ploym en t of funds torexpansion end for m ee ting the hIgh cost of raw m ateria lS , the w ork ing eap lta lre qu ire m eT jts in cre ase d s ub sta nti~ ly re su ltin g in In cre ase rn in te re st a nd fin an CIn g c os t tro m R s. 0 .4 1 C ra re s in t h ep r9 vi0 u s y ea r to As . 1 .1 2 Crores in thecurren t year. -Y o ur c omp an y h as -ta k:e n s ev era l s te ps 10 (eall les G9stsand in cre as e o ps ra tlo na l e ffiC ie nc y, a s a (as!.!lt o f whiGh, mecompany d esp ite in fla tio na ry p re ss ure s m a de p ro fits b efo re ta x o f A s. 13.65 C rare s com pa red to Rs.11.92 C ro re s Iht he p re vio u s y ea r s how in g a. g ro wth o f 1 4% .Y O lJ rc om p an y w as e njo yin g 1 00% In co rn eT ax e xe m ptio n fo r p re vio us liv e y ea .rs w ~ich e nd ed f~ f inancial y ea r 2 00 9-2010. Du rin g ne x t f iv e YB? I's on ly 30 "c Ioo f t he pmfits w J I I b ae xe m ptfre m Iflcom e ta x.T he com pa ny w Ill co ntin ue its eHorts t o g r.oWs o th at im p ac t o f lo ss a t ta x b en efit is m ih !m iz ed .DIVIDENDD uring th e yea r you r d irec tors d ecla re d Ih te rim d iv ide nd of R s. 1 .5 0 per share on N l !l ve f fiOe :r 9 ,2Q1 Q I Wh ic h h as b~npald,Th e D lre cta rs a te p le ased to re co mm en d a fin al d iv ide nd of R s.2 .S -0 p er equity sha re !hUB ma ~ln ga io ta l,d iv id en d o fRsA .OO pe r e~lJity s ha re fu r tl1 -ein an cia l y ea r 2 010 2 011 . T he G liv iE le nd s ta x f re e in th e han d so fth e .s ha re h'o ld e rsINDUSTRY EXPERIENCEThe r a w ma te ria ls p ~ica s p articu la rly o f N atu ra l a nd S yn th et1 nJ ub be r re ach ed v ery n ig h le v~ ls,e sp ec ia "y du rjn g tilela st fo ur five m o nth s o f Ille y ea r. With ra w ma te ria l c os ts a cc ou ntin g lO r n ea tly 7 0P/o 01 th e c os t 0f produc l lon , .aombiAed

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with inlense competition. p ro fit ab il fty could no t ln e rea se pflllportiorll;ttel1{to sales Increase.TMe Autlllmotive lyre ~anufa,cturers Associatillln (A TMA ) o f ImediaIn as r equ este d th e G 0vemm en tfo r a lloW in g duty-freeIm ports of key taw'matetials,lncllJding syn th eflc ru bb er a nd ru bb er o hemle als. Thls would hstp th e industry i n cut tingdown the cost of raw materials Imported tram China, South Korea , Malaysia and Russia.T he e Sta bl,is he d n etw ork 'd f th & ocmp an Y h as e na .b le d ta std elive ry o f mate /la l to customers 'w he re ve rth ey m ay b e.S ince tread eernpeunds and' p a tte rn s also centrlbute to a tyre 's fu el efficiency" we continue w ork il1 g o n newcornpoundaand dcesignsto Ii lelp customers with fuel eccnemy and eea-frlendly retreads.We ,con tinwous ly unde rt ake research to RmprQVethe tre ad c om pOUJ'ldsV>(hicl : l e an p erfo rm b ette r and red LIcecosts.OPPORTUNITIES AND THREATSTyrs retreading in India has ga ined g rea1e raccep tance inthe commerc ia l segrner:it, due to epera~:onal savings. Highq ua litY fe tt:'e ad in !!l p ro du cts la ve a cc ep ta nc e in commerc ia l se gm e ntw nic h o ffe r a clo oo financial benefits.Retread1ng cOJ~ts app(gximately25% - 30% the cost of a new tyre and helps increase the service life of tyres.Increa.sing price of1yfE$ and sup p ly d eficit o tru bb er lo r tyr-emanufaofuring may give further boost to retread InduStry.Improvement ln quality efroMs andreduceo overloading a(~ expeeled to give.flilip t o retreatd1ng.HoWeve r -BO% ofthe India", retregeil'lg i ndUstry wi ;) ic f il ,i s f ragmented and lies with n ume rous IJ n or ga nlz ed p ar tic ip an ts ,who produce low qua lity tl"eaQ ru bberor do peer re treads, poses abig threa t to the in dU stry a s a w.hole.1'l1e absence efqua lit y manufac tu r ing standards in retread industry hurts th e consumer confidence im retreading in generaLRrSKS ANDTHEIR MITIGATIONhe CC lI:n pa ny i s e xp os ed till va rlo ue risks w hich a re n orm al in any business ente rp rise . The m ain ones and the-steps

Under ta ken t0m ltig a te the.se risks ate men tio ne d below :- Hnancial risk: Credit !r is k on ac coun t of ma te ria l s upp J il ad to customers has been mit igated to a la rg e e xte ~t byinSistIng an number 01 parties to p ay In a dv an ee befa re supplies are maee, In Ihecase of olhers PDO's are lakenagainst suppl les, The risk o fd eta yed p aym en t Il'OmSTU's lscontrolled anc; lmanaged _ b y r ig o rous fo llow -up , sU !'lJ ; )lyo f g oo d qu ality tre ad e ts., a nd obtaim ng PQC Cewre delivery whe re ver poss ib le .

Inc;:tease in price of ra IN matEr ia ls : Nlllrmai in cre ase in prices of faw materials Is generally fealorea wh ile fix in gpl"educt prie~s 10 th e eustcmers. Unexpected increases howeve r do affect pro(ttability till prices are revised to meetthe increased costs .. I n ease affixed price, contracts, mainly w ith STUs, unprecedented Increase in raw mat e ria Iprlees have serlous im pact on m arg ins. S om e S TU s do not agree 10 tread prices beIng indexed to prIces of rawm!;l:'ler!al.

Changes in governm ents polic ies: C ilanges in govefflID ent pelic es can at tlrnss materially e ffe ct c ompa ny 'sfinancial position or i l ' lveslmentS:There is tittle that can be done about It.

Operational risk PreventiVe maintenance is carried out to achieve h!gh leve l of m achine ava ilab ilitY . Ac;:Iequateih'lentory of stocks a t e ach stage a f ope ra f ion is rnaarta ined to keep product ion 9Qing en in case of any breakdown.

PrOduct risk: Researchand development is-co nfin uo usly b ein g u nd ertak er to d eb ve r Detter products, se rvice a ndva lue to end- cus ra rne rs .

HUMAN RESOURCE DEVELOPMENTD uring the year the com pany had cord ia l re la tions with workers, sta ff and 0ffieers. The shop floor m anagem ent isdone through persona l touch, using var ious motivaf lonal tools a nd m e etin g their training needs reqU irem ents. W ebelieve in eml')awerlng our employees throlllgh greater Knowledge, team spifrt and deveiopinggreater sensa ofresponsibi li ty. There w ere 2 51 re gu la r e mp lo ye es d Llrlll9 the ye ar.INTERNAL CONTROL SYSTEMThe O om pany has adequate in te rna l cO ntro l systems and proaadj.lres d es ig ne d to e ffa clNe ly COi1t rO l th e Qperations atits Head Office. Plants am i depots. The in te rn al Gonlrol systems a:re d .e sig ned ta ensure th at th e financial a nd o th erre co rd sa re re lia ble for the preparat ion of f1nancfa l statemerrts and f6 r malntaThfng a cco un ta l o f a sse ts. T he C om pa nyhas adequate Budgetary Control S ystem and actual p erfo rm an ce Is W l1 sta nW m on ito re d by the management TheC om pany has w e!! designed organ~zat iGmstruGture, allth0rity l eVe ls < if ld In te rna l ! 1 ju lde llnes >andru les .

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jlNOAG1

Independent internal auditol'S'coridUc1 a ud ltc olle rin g a wide r an g e o f o p er atio n al matters and enS lJ r eCQmpn~nce w it hspecified standards. Planl\ed periodic reviews are earrled eut ! 'e~ult lng In ident f f icat lon of c::onlfol deficiencies,opportunities fo r brid9in!J gaP$ with best practicea The Ifindings of Intarnal auclft are revj~eQ by tne top anagemen tand by the, Aud it Comm l tt e, eo f1 l; re Boa rd 0f Directors.The externa~ auditors have eva1ua ted t oe system of internal controls inthe QolTlpany and l't~ve (eported lhat-Il"e sameis ade(jJuateand commensurate w lth th e s ize o f th e C om p an y and th e n a tu re o fits b us ln e ss ,COMMITMENTTO QUALITYIrndag recognlze.s quality and prodl!lcti'vlty as a pr l7 l -re ,Qu is ite lor i ts opera l iQ1ns aad has t rnplemsl I l ted ISO 9.0012008s tandards at N ala ga rh p la nt a nd H ea d O ffice .ENVI.RONMENT PROTECTIONAnti ~t1uliO'n systems are fully i l lstaJled and ope rCltio '1 al. Continuous etfort~ 10nurt.ure and preservedhe env i ronmenta re pur su ed .DIRECTORSIn aocordanceowi\h Atticls 89 oi the Artic1esl(jf ASSQ'( ; : iat ionof the Company. M r. H . P~ ram esw ar a 'ld M r. S L KhemKawill retire from omc~ by retanon, and being eljgibl~. offer themselves to r re-alQPoiri tment,.Pursuant to the terrns ot appo in tment , Mr.K KKapu r will vacate the G l f f l e e ~fwt"lole Time Director on 31 m May 201 1.ThB0ard has recom mended to reappsin t M r.K K Kapur as Whols T im e Q ire ctQ r fa r fu rthe r p eriod 0 f five yea rs on tAete rm s a nd ce nd !tion sa sse t o ut in the nalice ..AUDITORS' REPORTIna e bs erv atlo ns o f t he Audl\G1rsare se ff -exp l ana to ry and, d o n ot c all for any fUrth~ eornments .AUDITORSThe AU sltors of the Com pany, S . A .Bat l ib0 I&Gil!TI pa ny, Char te red Accaun ta i 'l ts . retire althe conclusion of the ensuinAnnl.il;ll General Meeting and b ein g e lig ib le . o ffe r themsefves for re-app0mlment . The re qu is ite c ertific ate IJ /n de'S e ctio n 2 2 4(1 B ) o f th e C am pa nie sA cf 1 95 6 h as tb ee fl re e eiv ed from1:hem.PARTICULARS OF EMPLOYEEStn fo rmat jdTl in a cc or da n ce with the p rovis ions of Section 2H (2A ) aHhe Com pan ies Act. 1956, read w ith thC om p a nie s (P artic ula rs o f,Employees) Au les 1975 as amended, regarding emp loyees is given In Annexure II.RESEARCH AND DEVELOPMENTfTECHNOLOGY ABSORPTION/FOREIGN EXCHANGE EARNING ANOUTGO.T he in rorm atfo n to as disc losed under S ee tio n 2 17 (1.)(8' of the C om pan ies Act 1956 read witl1 th e Compani.S(Disclosure- oli Pa rtic ula rs in the Report of 1he Board o f D i rec tors ) Rules 1988, isapPeAded hereto as An nexure -I a nfO rms part o fth l$ Repor t.LISTINGYaur Company Is listed withthe Stock Exchan GJe so fMumba l a nd Oell'li.DEPOSITORY SVSTEMThe s ha ra a of YOl:J;rompany are being traded [n 'e le ctro nlc F orm a nd th e O ern pa ny h as esfabli!:>l')edc on ne ctiv ity W Iboth th e depOS it or Ie s I .e . .National Seourlties Depos i to ry L lrn tte d (NSDL ) and Ce r it ra l P e l1 lM l to ry Services ( Ind~Llmr ted (C DS L}.11 l view of the n um erous advar i tages offered by the Oeposl l :ory system . I fl er tr jbe rs are r.equestedava il t he , faCilitY of dematerial ization of th e sh are s a ll ejtb~r p 't tl1 e Depos ito rie s a s aforessld, As on March 31 , 2Q11total of 1677245 equ it y s har es wh lc h f0 rr n s31 J~5% ot1he snare capital stands dematerial ized.CORPORATE GOVERNANCEA se para te rep ert an Corporate Governance is inc! uded in the Annllal Relf lort and Ihe Certificate from th e practiclCompany Secretary c or tfirm in g c em p tla nc e w ltfJ t h e.c on d ltlo h;S o f C orp or ate G o ve rn an ce a s stlpulated in clause 49the listiog Agreerhenlls anne.x ,ed thereto.

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{.NDRd!MANAGEMENT DISCUSSION & : ANALVSIS REPOAThe Management [}lScussion ar'Id A n'a1YStS Repor t, a s r8 :C i!u ire dy olaus.e4.9 of t t)e IIstlngagreement, a re : alr ead y dea ltwitI1 in v ario us s ec tio ns a t th is ReportCAUTIONERY STATEMENTStatements in this report, descr-iblhg he Gom~any'5 ob je c ti ve s . e xpeot at lon s and /or p re dle tie ns m a y be forwardlool


9/46

ANNEXURE-IDISCLOSURE OF PARTICULARS WITH RESPECT TO CONSEAVAnON OF ENERGY, TECHNOLOGYABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO AS ~EQUIRED UNDER THECOMPANIES (DISCLOSURE OF PARTICULARS INTHE REPORT OF BOARD OF DIRECTORS) RULES, 1988(A) CONSERVATION OF EN ERGY :The company has implemented various energy conservation measures during the fina MI.aJ ye ar w hie h haresulted In the reduction of overall electrical energy and fuel consumpt ion per Ion of pr'Oductien.(B)TECHNOLOGY ABSORPTION:E#erts made 10te,Qnnology absorptiona~given in prescribed Form (B)annexed.(C) FOREIGN EXCHANGE EARNINGS AND OUTGO:Activities relating to export, initiatives taken to increase export. development of hew expert market fo r productsand se rv ices a nd e xp ort plana.D I h h C h f d 05 Ir n9t eyeart e ompanyo ' as expor e retreading m aten aJ of HS..291. aos,(b ) T ota ! F o re ig n Exchange used and earned:Particulars 2.010-11 2.0.09-10eRs.ln lacs) (Rs.ln lacs)Forlsign E:xchangeEarned 291.05 239.39Foreign Exchange used 148.47 26.86

FORM- B(See Rute 2)Disclosure of partleulare with respect to Absorption, Research and Development.RESEARCH AND DEVELOPMENT Sustained R&D efforts are beh.,g made btl the Company todevelop improved tread quality and designs, which suit Indianr oad condH .lo ns.TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

The Company being quallty conscious. G0rftfn~l3l1y Updatestechf lO[QgYJ and greater emphas is istaid all indigenisation and cosreduction. _Specific Areas j nwhich R&D iscarried aut by the Company are;A) Ge:{elopmentof new desi'Q f'jS Bl'1d products.b) Process changes to further inlpra.ve quality ana cQnsiS tency Gf1hsproduct .We continue 10be in ~ posit ion to offer our Indian customers a betteand morequaHtat i ' l~ services in tne fiels0ftyre ret readinQ.~vaLua1ionand introdtlotion of new r a w materials are regular ly carrieoulto offer specific property lrnprovernents and thereby to achieveimp ro ve d p ro d uc t performanoe.New patterns are developed and Introduced ta obtain specifi3. lnferm atl on regard in9 techno.logy pertor(f lanGe character ist ics.

imported during last five years. No technology. as such. has been h,'perted durltm last five ye~.ANNEXUREIIPARTICULARS OF EMPLOVEES(UNDER SECTION 217(2A) OFTHE COMPANIES ACT, 1956 READ WITH THE COMPANIES

1. Bforts, in brief, made towardstechnology absorpt ion, adaptation andInn6va1ion

2 . B en efits derjyed as a,resu lt o ft tJe aboveefforts e..g. product improvement. costreduction, product d!evelopment. Importsubstitutionelc.

tPARTICULARS OF EMPLOYEES) RULES 1975Na.me DeslgnatJon Remuneration QualificatJo ns Date at Total Age in La.st& : Nature of GlOSS (Rs.) Commencement Experience years EmploymenOut les of Emplovment (Years)Nand, C h a l l 1 ' l ' l a n c l i m 75.76.875 M.S and MB:A 1 Apri l 2010 50 75 PromoterKheni~a Managin g b lr ec to r Direotor

K . K . Whole-TIme 63.68,448 Ma ste rs in 9 Apri l 2001 E n r e mKapur Director & CEO Ma thematie s, ICWA 50 73 India PVt. Lt8


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/INDAGjREPORT ON CORPORATE GOVERNANCE

Company's Philosophy on code of GovernanceThe Company re cog ni:?e s the lm porta nce o f g oO d C orp ora te ~ ove rfila nce . W h ich Is a tID ol f0 r b lo lild ii: lQa stro gand eve r"IE is ting ben efic ia l re la tion sh ip w llh the eus te rne ra , supp lle rs , banke rs and m ore importantly w ith th eInvestors.T he CO fJ llp an y b elie ve s th at Its k e-y deeisfol' ls must serve th e u nd er~ yin g g oa ls of enhancinq shareno lders valueover a sustained period of t ime. and aoMiev log the d efin ite a nd rn ea su ra ble p el1 0rm a nc e targets.I. B OA R D OF DIRECTORSThe Board com prises of s ix d irectors, w hiG h InG lude two e xeeu lve -d irecte r M el fou r ncn-exscutive dllrectors asonMarch 31, 2011. The oornposltton of Board with thelrattendanoe.at the Board Meelings and atthe last AnnualGeneral Meeting is given below:

ExecutlvelNon Number of Atlendance.atthe No. of Other No. ofDirectors executivel Board las t A G ~ held on Directorship membership inIndependent Meetings J uly 30 201() Held in Public Committeesattended Companies (Including INDAGJ

Member ChairmanM r. NandKhem l< .a E iecutive , 4 - Ye,s 1 1 1 1{Inl~stedl -Mr.S,L .KhefT lka NOrT-E, , -ecut iVe, 1 No Nil Nil Nil{Interested)Mr. PH Khanna Non-Executive, . 4 Yes 6 9 4

'(IndeRe!1~nt)Mr .R . Par81li leswar Non-Execut i ve , 4 Yes Nil 2 1( Independent )Mr.Kk.kapur EXe.cuf fve. 4 Yes N il 1 , N i l(Whels-tlme (ir:)tetesled)DlreGte,r)P~of.Hile'ldra Non-Execu l i ve , NlI No N il N il N ilWad l iwa ( independent )f0ur meet! l r r lgs of the Board of D ire ct0 rs w ere Iileld dur ing the year , viz on April i5 2010" July 302010. November9 2010 and J'anvary 192011. Agenda papers along w frth n ote s w ere e lrcu la ted 10 U te Directors in advance o feach meeting. All relevant Information as required under Glaus!:!49 of IMe S t ook Exchange Listing Agreementwas p la ce d b ale re th e B oa rd .fro m tlr(le to u rn e,II.AUDIT COMMITTEEThe Comrnlnee comprises 0f two non-executive directors and one executive director having t tnancialrnanagarnent expertise . The te rm s of reference of Audit C omm itte e c ove rs the areas mentioned under Clause49 G f the Listing Agreem en t and Sectien 2 .l2A of the Companies Act, 1956. Feur mee~ lAgs of th e AuditC omm ltte ,e w ere held dur ing the year E I I 1 April 14. 2Q10, J~ly30 2010, Novembe r g, 201 O,andJanuary 19 2011 .Th e cmnposilion o f1 he A ud it Committee and details of their at tendance atlhe meetings are as fo l lows:Name of the member Status No. of meetings AttendedMr.RIParmeswar Ch'alrman (Independent) 4Mr.P.R.Khanna Member (Independent) 4Mr.Nand Khemka Member (Interested) 4

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==~/'NDAd!

III. REMUNERATION COMMITTEEThe Board has framed remunetation poliGY, whIch is generally in line wfth the exlsfil'l9 ifildustrY practice andapplioable faws.Nam!i! gf the memb!itr StatusMr. Nand Khennk-a Ohairman (lnt~(ested)Mr. R. Parmeswar Member (Independent)Mr. P,R. Khanna Member (Independent)A Non-Executive DirectorsThe remunerafion of Non Executive Directors of company is decided by the Board of Qir6otprs. The NonExeoutlve Directors are paid rernuneratiolil by way of Commission and Sitting fea In terms of the approval ofthemembers at the 30th Annual General Meeting of the company held on JtJly 22.2009, Commission is paid at therate not exceeding one percent of net pfoffJs of the company calculated in accordance with the prOVision!? ofsection 19B, 349 and 350 of the Cornp~nies Act, 1966. The distrit)!Jtlon of the Commission :aJ1l0flgst the NonExecutive Directors is determined by the Board and is broadly on contribution at tile BOClfd meetfng andvarieusCommittee meetings as well as time spent on operational matters,Directors I Relationship Business Sitt'ny fee CommTssioTi paid N um ber of : 1

with other relationShip paid dUring for the year (As.) shares andwHhthe convertibleDirectors compan , 2010- 1(Rs ) Instrumenif anv. tsheld2009-10 201U-11

Mr. S.LKhern~a Brother Nil 4 O , O O Q Nil Nil Nil- ofMr:.NandKhernkaMr.P.RKhanna Nil Nil 1.60.000'- 500000 6.001,000 Nil.Mr.R.Earameswar Nil N U 1 80.000 5,Oa.000 6.00000 NilProf. Hitendra Nit Nil Nil 2,48,000 3,15,000 NilWadhwaNo severance fee ts payable to 1I10n-exeeuti~e dltectbrs,o( the Company.B.Whole Time DirectorExecutive Relationship Business Remuneration paid during the 2:010-11DIrectors with other relationship (Rs. In lacs)Directors with thecompany,If any

- A l l e l t ; J m e n 1 s Q f Fixed Service S t O C kremuneration oomponent contracts, o p t i ( ! 1 npaCkage 1.B. performance nollce details,salary, benents., linked peried, if a nybonuses, inc-entives, sevarancepension etc. along witlil feepartarmancecriteria

Mr. K .k . K ap ur N il WhQfetime 63.~9 59.91 - -Directora. Whole Time Director is entitled to J:jroflt sharing bonus, at the rate of 2k of profits betora tax earned by thcompany. The B~ard has approved paymei1 t of Rs. 28.18 lacs as bonus forthe year 201 O~2ti11.b. The aii>l'in~ment is subject to termination fly one month notice In writin,9 on either side. Mr.K K Kapur will breappointed as ttle Whole TItmeDirector w.e.Ulloe 1,2011 tor a period of five years.c. The Oompany does not haveal present any scheme forgrantol Stock options to lis Directors or Employees.

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IC.MANAGING DIRECTORExecutiveDirectors

Relationship Business Remuneration paid during the"'''with other relatIonshl p (Rs. In lacs)Directors with thecompany.i f anyAll elements of Rxed ServIceremuneration component contractspackage i.e. & notice

salary. benefits, performance period,linkedbonuses, Incenfives, severancepension etc. a lon g w ith feepertormancecnterla

Brother of Managing 75.77 75.63S.L Khemka DirectorMr. NandKhemkaa. The-appointment is subjeello termination b y one month notice In writing on eitha( side. Mr. anI:!has been appoin ted as IheChairm all oum M anag l n9 Director w .e .f.A pril1 . 2 01 0.b . The Com pany does ot have a t p resen t any schem e for grant o f S tock options Lo its D irectors or Em ployee=IV.SHAREHOLDERS COMMITTEEThe share transfer and shareholde rs grievance com mittee looks In to redressing of shareholders and In as -g rievances. M r. Nand Khem ka is Chairm an of th is Com mittee. The Soard has designa ted M rs. M anall D. B J lCom pany Secre tary as 1heCorn plla nc e O ttlc ar,Warning against Insider tradingGompreher:1sive ~uide t1nes advising and caution ing the management. sta ff and other re levant busassocia tes on ~he procedure to be followed while deanng wttn the securities 01 the ccrnpany have be Sf'and imp lemente d .V . G ENERAL BODY M EETINGST he d ate s, lime and venue 01 the three previous Annua l G enera l M ee tings. he ld during the last three yea sg iv en p elQw :

TIME: to :OOAM

VENUEATE29'~AGM- 30th JULY, 2006 Sal lntemauonal CePragat l Vlhal, L od j R oa dNew Delhi 11000330 n , AG M - 2 2"" JULY, 2009 1 0:00AM Sal International Cen"PragatiVlhar, L odl R oadNew DeIhl 110003

Sao; tntemaucnal Ce -P ra ga tfV lha r, L odi R oadNew Delhi 110003

31~AGM-30'" JULY, 20'10 10:00AM

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'.RDAd!N0 special resolutions were put through postal ballot inthe last AGN'I.There is no proposal at oresentto coneuethe postal ballot eX'9rcise for passing resolution. In Ihe previous th~e AGMs speeial resolution h av a- b ee npassed by the members by snow of hands.VI. DISCLOSURESDuring the financial year ended the 31 0 1 Marett. 2011 there were no m aIerially signiilcant related partytransactions that may have potential eonruot w i th th e lnterests of COJnpany at large.No penalfies wer'9 imJi losed nor were any strictures passed on a ny c ap ita l markets related matlers dur ing thelast t hr ee yea rs .The company has not armauneed any fmmal WhiStle Blower polley. However no personnel have been deAledaccess to Ih e A ud it C omm itte e. The company has compl ied with a ll th e mandatory require men ts of clause49 oth e lis tin g a gre em e illf. H ow ev er non-mandatory r eq u;reme f\1 s o f this c la us e h av e not yet been adapted.VII. MEANS OF COMMUNICATIONThe quarterly and full year f inamcia l results are sent to the Stack. Exchanges at Dell'l i and M um bai W Mere thEsnares of the-CernparlY are listed. The results are also pupl ished in "Business S1andard" (Engl ish andHlnSi).TheManagement dlseusston a nd a na ly siS report forms a part of the Directors' Report.VIII. GENERAL SHAREHOLDE'AS INFORMATION(I) AGM Date., time & venue : Tue$day, th a9 1J )A u gu st 2 01 1 a t1 0:0Q am .

Sai International Centre, Pragati Vihar, t .edi Road, New Oelhl-1 , OOO(if) Financlal Calendar & F ln an cia l Repor tin gFo r 1 "' q u a rt er ending 30 1 h J une By mid of Au~ustFor halt,year e n di'n g 3 0'" September By mid o f NQ vembe r

By mid of FebruaryForyear end ing 31 ') March Bymid of M ayAnnual Gene ral Meetin for th~ year ending 3 i"March B y mid of Se~tember(iii) Date of Book C lOSUre . 151-ugust 2.01 1 to 9~ 'August 20 11 (Both dates inoluslve)(iv) Dividend Payment Date . 161/>August 2011(v) LIsting on Stock Exchanges The Stock Exohange, Mumbai

Phlroze JeejeebhoyT6wers.Dalal Street'; Fort, Murnbai 400001Deih l Stock Exchange-Association LimitedDSE House, 311,Asaf A l i Road,New Delbi 110 002(vi) Stock CodeISJN under depes1t0ry system

509162INE802D01015

The-Stocl< E"Xchange. MumbaiThe Delhi stock Excflange- 3939

(vii) Stock Marke Pries data D uring the year, ihE'ilrewas no trading of Oornpany's securit ielat Delhi Stock Exchange. The details of month ly 'High and.Lop~ice on the Stock Exchange. Mumba f are as under-

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I INDA"7Month Monthty High Prices Monthly Low Prices Number of(Rs.) on BSE (Rs.) on aSE shares tradedApril.2010 115.9 98.1 1S83a:3May 2010 111.9 86,1 78020June2010 115.8 91 833g48July 2010 118 97.1 368954August 2010 104.~ 80.6 146728September 2010 114 97.4 174557October 2010 113.5 95.05 114246November 20110 114.25 92 218040December 2010 105 92 59883January 2.011 103 86,5 80317Pebruary 2.011 101 ~6.05 37565March 2011 97.90 83.50 37510(viii)Reg~sttar& Share Transfer Agents Skyline: Financial Services (pi) limitedD-153JA. lO j Floor, Okl'1la Industr ia l AreaPhase-t, New Oelhi-1100.20

In order to expedite the process of share transfers the Boardhas delegated the power to approve share trans1ers to seniorexecutives, who attend to share transfer farmalitiEisfortnightly. The Company has appelnted Skyline FlnanolalServices (P ) Umfled as Registrar and Share Transfer Agentsfor phys lca llr a11s fe r o f securities as well as dernaterlallzaf o n ir.:ematerlallzati01'1 of securities.As 01 1 March 31, 2011

(Ix) Share Transfer System

(x) DistribUtion of ~ha.reholding -No.otequity shares he'd Sharehorders % of Shareholding

Number % to total Total shares % in totalUP i e s o c 5188 94.46 . 442424 8.43501 to 1 e O O 146 2.66 11847:9 2.261001 to 2000 67 1.22 101258 1.932001 to 3000 28 0.51 71673 1.373001 to 4000 11 0.20 40274 0.774001 to 5000 7 0.13 31555 0.605001 to 10000 26 0.47 185188 3~5310(;)01and 'above 19 0.35 42591.94 81.13Total 5492 100 5a5QOOO 100

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/ 'NDAGI(xi) Categories of Shareholdlng ; As on Maroh 31, -2011Category No. of Shares held % of ShareholdlngIndian Promolers 1687965 32.16Foreign Promoters 0 0Directors & their relatives 2 3 5 7 0 0 2 44.89UTI/Financial Institutions & Banks 2 ( ) S Q D.04BodY Corporate 120458 2.29NRI/OCB 16654 0.32-Foreign Institutional Investors 48819 0.93Imdian Public 1 0 1 7 0 6 2 1 9 . 3 7Total 5250000 100

(xi i) Payment of diVidend through ElectroniC-Clearing Servioe:The Securities and Exchange Board of India (SEBI) 'has made it mandatory for all cernpanles to use- th ebank account details flJmishsd by the depositorIes for depositing. tllvidends.As per tA e recent RBIguldel nes, effective from September 30, 2009. ECS credit will be moved completely on NationatElectronlcCtearance System (N EOS) platform th rOLlgh core banking system. Accordingly. dividend will be creclfled tthe shareholders' bankeecount throu~h NECS where complete core bank:ing details are aV(;l ilable with theCompany, In the event any branch of a bank has not migrated to core banking system, or Where the corebanking account number is not furnished by Ihe shareholder to the Depository/Company as the case mabe, the Company will print the details available In Its records on the dividend warrants te be Issued to tl1eshareholders. The Company is complying with SEBl's directive In this regard.

(xiH) U1'1IoialmedDIvidendsThe Companv is required to trransfer dividendS which have remained unpaid lunclaimed for a periodseven y e a r s to the Ihvestor Education & Protection Fund established by the Government. The Corn pany w J i Rnat requiretransferring any unclaimed dividend1:o such fund_As in the past, the Company will send Intimation to shareholders whose dividend warrants have not beenencashed. Shareholders are requested to revert tp the Company If they have n C ! l l received'! encasned thedividend warrants. C

(xlv) Dematerialization of shams Shares dematerialized with National Securities Dep0sit~zUmited (NSDL) and Central Depository Services (IpdiaUrnited (CDSL).As on March 31.2011, a total of 1677245 equity shares whictforms 31 . 9 5 0 " (.of the share capital stands dematerial ised.

(xv) Ptant Location Plot No.86, Industrial AreaBhiwadi 301019, Dist.Alwar Ralastl:!an,.(lndia)Vll1ageJhinwalCl, HadbastNo.73j Nalagarh District Soiai"'(HImachal Pradesh)

(xvi) Address lor Correspondence(a ) For Tra nsfe r 01 physrca l shares. request Skyline Financial Servrces (P) Umitedfar Dernatertal lsetlon of snares, change D-153/A, 1'; Floor, Okhla Industrial Area,of mandates! address arany otharquery Phase-t , New DeJhH 10020

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IINDAU!(0) For any Invester grievanee The Company SecretarYIndag RubberUmlt~d11. C omm un ity C en te r, SakatNew [)alhi 110017

Phone no.: (011) 26963172, 26003173IX. COMPUANCEOFCODE OFCO DUCT

It is hereby declared and confirmed tt latal l lJ"te Board members and senior management of the companyhave complied wIth the Code of Conduc t fortM periOd from 1'" April 201 Oto 311"MarcH 2011.

ToThe Members of Indag Rubber UmltedWe have 9X'amined the compliance of conditions of corporate governance by Inda:g Rubberlimited; fer the year ended on M areh 31 , 2011 as stipulated in clause 49 of the Listing Agreementofthe said eompany with stock excnal1ge(s).The compnance ot condltlons of corporate governance Is the responsibility of the management.Our examination was limited to procedures and Implementati0n thereof, adopted by the Companyfor ensuring the compliance of the condi t ions of the Corporate Governance. It is neither an auditno r anexprasslon.of opln ion on the financ ia l s ta temen ts of the-Company.In our op in lon C lA dto th e best of our information and aocording to t he e xp la na tion s given to us, wee&rtity that the COlTJpany has compl ied with the conditions of Corporate Governance as stipulatedIn the Ustmg Agree.-nenLW e sta te tha t no investor g tlevanoe is pend ing for a pence exoeed ing one m onth aga inst 1 I1eCompany as per ~fle records maintained by the Shareholderss Investors Grievance Committee.We furtl1er state that such compliance is neither ail assurance as 10 the future viability of theCompany no r th e efficiency or effeetiveness with which the mar ;agemen t has conducted the affairsof the Company .

Place:New DelAiDate:Ap~iI 18. 2011

Fo r S.K.JAIN & ASSOCIATESCompany Secretaries

S K JainCompany Seoretary

C.P.No.2657

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- - - - 'LINDA.G7

INDAG RUBBER LTD.FIVE YEAR PROFrLE( A 1 FINANCIAL lAs. ' D O O J~!lDtiIlZ 2 : ! J I l H U I 2 . : Q [ ! !iH!i 20QS-lD 2 ! l : 1 1 l - 1 : 1PAID-UP CAP'ITAL 52,500 52,500 52,600 52,500 52.500RESERVES & SURPLUS 79.600 150,028 2.16;955 308,122 391,261SECURED LOANS 12.4.923 77,339 1,778 73,026 72,305UNSECURED LOANS 5,000 - - - -DEFERRED TAX LIABILITY (NET) 1" .642 3,878 3,491 6,957 4.692263.5'65 284.245 274.724 44ll.6Q5 520,758REPRESENTED BY :GROSS BLOCK 252,575 261,837 283,544- 34ft319 392,956LESS: DEPRECIATION 119.'332 133,338 146,448 162.081 181.120NET FIXED ASSETS 133.243 128,499 137,096 184.238 211 836CAPITAL WORK~IN-PROGRESS 222 11,432. 13,653 11,6'6 11,716CURRENT ASSET 2l4,722 245.274 22!ii,444 412,867 469,~79CURRENT LIABILITY 74,522 10a,960 101,4G9 168,116 172,373NET CURRENT ASSETS 110,200 1441314 1231975 244.751 297.206253,665 264,245 274,724 440,605 520,758SAlES 60B,01S 739.411 761,495 1,112,965 1.494,674EBIDTA 74.54,4 113.213 104,86jl 139,641 167,022DEPRECIATION & AMORTISATION 1:3,520 14,006 14,225 16.a2-7 19,327EBIT 61 02.4 99,207 90.6.43 123.314 147695INTERIEST 16.857 13.148 13,913 4,112 11.237PROFIT BEFORE TAX 44.167 86,059 76.730 119- ,202 136,458TAX 2,067 3,298 519 3,466 28,933PROFIT AFTER TAX 42.100 8~,761 76,g11 115,736 107,525DIVIDEND INCL.CORPORATE DIVlbEND TAX - 12,284 12,284 24,569 24,38SINTERNAL GE;NERATION 55,620 96,767 90,436 132'063 126.852NET WORTH 132,100 202,528 269.455 36'0,62.2 443.761CAPITAL EMPLOYED 23,SS5 284,245 274,72.4 440,605 520,758( B ) FINANCIAL RATIOSNET WORTH PER RUPEE O FPAID-UP CAP1TAt (RS.) 2.52 3.86 5.13 6.87 8.45BORROWINGS TO NET WORT:H (RS) 0.98 0.38 0.01 0.20 0.16EBIDTA TO CAPITAL EMPLOYED (%) 28.27 39.8a 38. ' 7 31.69 32.07PROFIT BEFOAETAX TO NET WORTH .(% .) 33.43 42.49 2~.4a 33.05 30.75PROFIT BE FOR E TAX TO SALES (%) 7.25 11.64- 10.08 10.71 9.13EARN ING PER SHARE C R S . ) 8.02 15.76 14.52 22.04 20.48DIVIDEND PER SHARE (AS.) 0.00 2 . . 00 2.00 4.00 4.00DIVIOt:=ND PAYOUT RATIO 0.00 14.84 16..12 2123 22.68(INCLUDING DIVIDEND TAX)e e ) PHYSICAL(I) PRODUCTION (an)Pracured Tread Rub b a r (MT) 4,455 5,401 4 .1536 7,849 7 ,7394UASG (Including Envel0pes) (Mn 321 535 460 721 709USC ( K. Ltrs.) 260 326 323 446 7 5 1(II) SALES C a T Y . }PrecuredTread Rufitw (MT) 4,472 5,174 4,636 7,592 7,849URse (Including Envelopes). (MT) 807 487 486 695 713USC ( K. ltrs.) 247 285 308 470 676

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INDAG RUBBER LTD.SOURCES'" 'D APPL C 110N OF FUNDS_AS AT 31ST MARCH 2011

(Rs. '000')

SOli RCt:.S APPLICATIONS I20,758 5-20,7581

LOAN FUNDS SHAREHOLDER'S FUNDS DEFERRED TAX LIABIUTY72,305 443,761 4,69.'2I

sourrv SHARE RESERVES52,500 391,261

GROSS9LOCK WORKING CAPITAL392,956 297,206

DEPRECJATIO181,120

CURAENT ASSETS, CURRENTNET BLOCK LAt"IIAL V~UN"'-IN-PROGRESS LOANS AND LIABILITIES AND211,836 11,716 ADVANCES PROVISIONS469,579 172,313

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/INDAdJ,AUDITORS REPORT

TOTHE MEMBERS OF I NDAG RUBBER LIMITEDt. We haveaudlted thearteehed balance s n e a t 0f Inda~ f{Ul;!ber Limited (The Company') as at Marcl'l31, 2011 andalso the profit and loss account and the Gash floW' statement for the year ended on that date annexed thereto.These f inancial statements a re th e responsibility of the Company's management. Our responsibility is to expressan opinlen on these financial statements based en our audit.2. We conducted our audit in accordance with auditing standards g.eneraUy accepted in India Those Standardsrequire Lhatwe plan and perform the audttto obtain rsasoaab'e assurance ab.outwhethertinefinanciaJ statementsare free.of material misstatement An audit lncludas examining, on a fest bas's, evidenpe ~upportlhg the amountsand disclosures in i n a financIal statements. An audit also Inc!udes assessing the accounting principles used andslgnifi~nt estimates made by management, as well as evaluating th e overall financial statement presentation.We belil;wethat our aud~ proVides a reasonable bssls lOrour opinion.3. As rE1_quiredy the Companies (Auditor's Report) Ofljer. ~003 (as amended) issued by theCentraJ Government ofIndia in terms of sub-section (AA) of Section 227 of the Companies Aol, 1956, we enclose In the Annexure asfatement on the mattel% spec1fiedin paragraphs 4 and 5 oJthElcsaid Order.4. Further to our comments in \MeAnnexUre referred to above, we report thatI. We have obtained all the informatl~n and explanatloms, which to the best of our kno.wledge,and bElcliefwerenecessarylorthe p.urpeses oteur audlt;ii. In our opinion, proper books of acbOun1 as required by law have-been kept by the Company so far as appearsfrom aurexamiTlation oftl iose books;iiI. The balance sheet; p ro fit a n d lo ss account and cash flow statement dealt wIth by this report are In aqreernentw.ith the becks otaecount;iv. In our onmlon. the balance shest, profit and loss account and cash flow.statement dealt with by this reportcampi), wittl the aooouliting'stal'llqards referred to in sub-section (30) of Section 211 oHhe Companies Act.1956.v. On the basis O f th e written representations received from the directors, as e m March 31, 2011, and taken on

record by In e Board of Directors, we report that none of the directors is disqualified as on March 31, 20'11from being appeinted as adlrector in te rm s of C la use -(g) ef sub-section (1 ) at SectiQn 274 aftha CompaniesAct' . 195.6 .

vi. In our opinlon and to the besr of our lnformation and according to the explanations given to lis, the J;iaidaccounts give tne ,nfermatian required by the Companies Act, 1956, in the manner so required a.fId giVe a'true and fair view in eonforml1y with th e accoun1ing prtnciples gefler-ally accepted in lndia;a) in the case Ciftt)e balance sheet, ofthe.state of affajrsof'~he OolTlpany as at March 31,2011;b) in tMease oftheprof l t and lossaeccunt, otthe prain lor the yearended on that date; andc) in the case of cash flow statement, of the cash flows for the year endetJ on that date.

Fo r S .R . B A TUB OI & C O .Chart.ered AcoountantsFl rrn's Registration No. :301 OOSEper Anti GuptaPartnerMembership No. : 87921Place; GurgaonDate : April 18. 20 11

18


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Annexure referred to in paragraph 3 Ofour report of even dateRe:Jndag Rubber Umited(i ) (a)

(c)(ii) {a)

(b )

(iii) (a)

(IV)

(v )

fvi)- ( v i i )(viii)

(ix)

T he C om p an y 'h as m a in ta lF le d p ro pe r records sho~ing ,full partrculars. Including quantitative details ands itu a tio n o f fixed assets.All fixed assets have no t peen physloally vertfied by the management during the year but tilere is a regularp rog ram o f v e rif ic a tio n which, in our opInion, is reasonable h av rn g re g ard to th e size of lIle C om pany andthe nature 01itsasse1s. No material discrepancies were noticed ORsuoh venficatJon.There was no substantia! disposal of fixed assets dur ing the year.The mana gemen t h as e on du ote d p hy sic al verification o f inven16ry at reasonable In 'le rva ls dur ing he. year.The procedures of pl"iysieal wertflcation of inventory followed by the manage(i:lent are rea:>onableandadeql.lafe in relstlen 10 the.slze ofthe Company a nd the nature of its bus iness . The Company is maintalniAg proper records of Inventory and no material discrepancies were- noticed onphyslGa! verification.The C"l Inpany has nat granted any ' loans, seemed o r unsecured to c ompanie s , rir~s or other partiescover-ed in the register maintained under 819clion ~01 C i i f the Companies Act, 1956_ Therefore, theprovisions c if paragraph 4 (ill) ~a), (b), (0) and (d ) of lheCompanles (Auditor's Report) Order, 2003 la samended) are hotappl loab!e to th e Company.The Company has not faken any loans, secured or unsecured from companies, firms or other part iescovered in the register maintained under Sect ion 301 of the Companies Act, 1956 and as such, clauses4(iii~ (8) to 4 (ij0 (g ) o hh e C omp an ie s (Auditor's Reper I) Order, 2003 (as amended} are n01appl icabfe.

In our opinion and acoording to the information and explal1aliCilnSgIven to us, thera Isan adequate internalcontrol system commensurate with tn a size df th e Comp'any C I . n d the nature of its business, fo tile p urcha se ofinventory and fi)Cedassets and for ltle sale of goods and services, Durfng the course of our audit, no, majorweak l1ess has been not iced lf it the Internal control system In respett of these a re a s. D u rin g the course of curaudit, w(} have not observed any cont rO l li ng 'aIlU~e tp oorrect major weakness in internal control syste rn of theOornpang ,(a) AcoordlnqtothenfOrmation arjd explanations provIded by th e management, w e are of tlie opinion \hat thepart lculars of eonnacts-cr arraogements referred to In Section 301 of the Mt 'that Aeed a . o be entered intofhe r~.915termaintained under Sectlon 301liall9 been so entered.(b) In our opinion anda co ord in g to the informat ion and explanat ions gillen to us, t~e t ransact ions made inpursuance of such contracts or ar rangements exceedll1g value o t Rugees five lakhs have been enteredinto during the f lnanGiaJyear atprices ~hich are re a so nab le h a vin g regard to-the prevai IJng market pricesa t the relsvant f i rne,The Company hasnot accepted any deposltstrom the public.In our opinion, the Company has an internal audltsystem commensurate with the size and natlJ re of its busmess,Te tMebest of our knowledge andas expJaihed, the Cent'ral GlJverillmenl has not prescribed mal ntenance of costr ao ord s u nde r clause (d) o f sub-see tlon (1 ) of S es!ion 209 of the O ornpan les Act, 1956 tor ' r n e p rod Uc ts o f th eCompany.(a) The Company' is regular )' 0 depiilsl1lng with appropriate authorities- undlsputea statutory flues inlGluding

proviaent f\.md, lnvestor education and protection fund. employees ' state Insurance, i l i loome-tax, wealthtax, sales-tax, servteetax, ustoms duty. excise duty and other materia! statutory dues applicable 10 itFurther, since the Central Government has IiII date not presqribed \:he amoun t of cess payable underSeet lon 441 A of the Companies Act, 1956. we ate no t in a position to commenl upon the regularity orotherwise afthe Company 1 1 ' 1 depositing the same.

(b) Aocord if'lg to the In form ation aO d exp lana110ns g iven to us, no undisputed arnounts payaple In respect ofprovident fund. Investor education and protection fund, employees ' slate Il1suranC1il,income-tax, wealthtax, sates tax, @rvice tax, customs duty, excise duty, cess and other undisputed statutory dues. wereoutstanding, at the year and, tara period of more thar:1six months from the date they became payable.(0) According to the- raeords of the Oompany , th e dues outstanding of Income-tax, sales-lax, wealth-tax,service-tax, customs duty, exc\sedutyand cess o n a ccou nt of any dispute, are as follows:

(b)

(c )

(b )

19


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Forum wl1eredIspute is pendingAmoun t Perio to hlch(As '000) theamountRelates

13.915 199899193 200& '071.111 20014-05 & 2005-06

Nameofthe Nature ofStatute duesInoom eTax Incom e TaxAct . 1961 dem and De ihl -H igh Cou rtF lnarnoeAct-1994 Se rviceTax Cu stom . E x cis e. S SMCBTax AppellateTribunalM adhya Prades Commercia l Sa les TaxTax Act, 1994 DeputyCommlssioher.Coryumercla lTax

(x ) Th e C om pany has no accum ula ted losses a t the $ I'ld o f tJ 1efinanc ia l year and it has not in cu rre d c as h lc es es IntM current and ImmecUa te ly p re eed in g f il'la n c ia l y e a r.(x l) B ase d on a u r aud it p roced ure s an d as pe r the jn fo rm atjon a nd e xp lan aU ons g ive n by the m anagem en t, w e are o fth e op in io n tha t the Company has 110t d e fa ulte d in re p ayme nt o t dues to any bank . The C om pany d id no t haveany o uts ta n dIn g d e be n tu re s a n d lo a n fr om fin a nc ia l ln s fttu tio n d iJ r in g th e year.(xli) Accord ing to the in fo rma t io n and e x p la na tf on s given to us and based on the d oc um e nts a nd re co rd s p ro du ce d tous, the Com pany has no t g ran ted loans and a_dvances on the bas is of soourity by way of p ledge of sna res .

d e b e n ll . J re s a nd o th er secu r i t ies.(x tii) lh o ure p'n io n, th e C om p an y i,sn ota o hitfun d ora n id lili f mu tu al b en e fit fu n d I s oc ie ty . T he re fo re , th e p ro vis io ns o f. dause 4(xlii) o f fI:Ie Compan ie s (A u dito r's R e po rt) Order, 2 0Q S (a s a m en de d) a re n ot a pp lica ble to th e C om p an y,(x iv) In our op in ion . the C om pa ny is no t de alin g iftortfad in g In shares, s ec ur itle s , d e be n tu re s a n d o th e r in ve s tm e n ts .Aocordi ng ly , t he p r ov is io n s at clause 4 {x iV ) o f th e C om p an ie s (A ud ito r's Report) O rd e r, 2 0 03 (as amended , aran ofa pp lic ab le to th e C om p an y.(x v) A cc ord in g 10 th e in fo rm a tio n a nd e xp la na tion s g iv en III l:IS, 1he!C om pa ny has no t g ivan a ny gualantee fo r lo an staken by o the rs f rom 'bank o r f in~ l f1c ia ll n st it ut ions .(xvi) B ase d on in fo rm ation an d e~planati,onsg iv en 1 0u s by the m ana gem en t. te rm le an s were appl ied for th e purposefo r w hic h th e lo an s w e re o bta in ed .(xvii) A ccord ing to the in form ation a nd e xp lan ations g iven to us an d on an ave r a J I e xam in atio n e f1 he b ala nc e s he et ofth e C om p an y. w e re po rt that n o fu nd s talsed o n s ho rt-te rm b as ls nave been used fo r lo ng -te rm in ve stm e n t(x viii) T he Compan y n a s no t m ade any pteferenMI a llo tm e nt of s ha re s to p artie s or c om p an ie s c ov ere d in th e fe gis le rma in ta in e d tin d er Section 301 of th e Companies A ct, 1 95 6.(x ix ) T he C om pa ny did n ot h a ve a n y Qu ts ta n dih g debentures dur ing the-year:(xx) The C om pany has no t ra ised any m oney through a public issue during the year.(x xi) W e ha ve be an In form e d th at th ere w ere fra ud ule nt e le ctron ic Ira n s le rs of R s.7 00 th ou sa nd from th e C om p an y'sbank account to -th e b an k a ce ou rrts of tou r ind iv id ua ls , out o f w hich R sA oo thousand w ere re co ve re d b efo rew 1th dra wa l fro m th es e b an k a cc ou nts of in div id ua ls . T he . in divid Ua ls in w hos e a ee ou nt ttte b ala nc e IU I1 00 01 R s3 00 thousa nd w ere tra nsfe rred cou ld no t be tra ced a nd hsn ce Itle ba la nce a mount ha s no t be en recov:e re d. T heC om pany has taken up the m atte r w ltlr l the ba nk fo r th e re co ve ry of the ba lance am ount and considered th ea m ou nt a sf u n y reeovera,ble.For ~.R.BAnJ801 8 - CO.Chartered AccountantsRrm's Reg is tr a tio n No .: 301f003EPer A I iIGl p taPartnerMembe rS h ip N o.: 8 7 92 1Place: GurgaonDate: Aprl118. 2011

20


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/INDAdjBALA CE SHEET AS AT 31s MARCH 2011

(Rs. '000)Schedule Asatrcn 2011 As at31st Marcn 201a

OURCES OF FUrIDSharahol ers' undsare ~~pltalserves and surplus 12 52,5QO391.2.61443,761

52,500308,122360,622

oan undcured loans 3 72.305

72,3054,692

520.758

73,02,673.0266,957

440,60:5f"6 l're d T ax U ab illtJ e s (o et) 4PPUCATIONOF FUNDSxed Assetsoss blockss: Accumulated depreciation I amortisationt blockpital work in progress {ineluding capital advances)

5

urren sets, Loans an dvancendry debtorsash and bank balancesher current ass.etsa ns a nd a dv an ce s

392,956181,120211,83611,716223.552

346,31"91132,081184,23811.616

195,854678910

248,263146.84512,7091,72280,040

469,579

211,595129,1281',306",31559,523

412J867eus . CUI ren Liabilities nd Pro..,1 Ionrent Liabilities 11

12150,04818,068168.116244;751440,605et Current A ets

tes to Accounts 21he schedLJles referred to above-includ!ng notes to accounts form an integral partof the Balance Sheet.s per eur report of even date For and on behalf of the Board of Directorsor R B :TL 01 Cm's Registration No. : 301 003Eartered Accountants nail D. B 'J1 nlCompany Secr'etary J.K. JainChief Rnar i .c ia l Of f icerer ilG ptambership No. 87921ace: Gurgaonate: April 18, 2011

K r L JICEO & Whole Tlrne Director Nand KhemkaChairman cum Managing Dlreotor21


23/46

/INPIfjG"/PROFIT & LOSS ACCOUNT F RTHE YEAR ENDED 31st MARCH 2011

15

(Rs. (000)Y e a r nded Year Ended31st I\ , arch 2011 31sf March 20101.494.674 1,112,965B,088 8)-3411,502,762 1,121,306l,100,6n 826,2282,343 1,06663,325 50.741182.904 16~.130(13.509) ' ( S 7 . ! ? O O )19,327 16.32711.237 411121,366,304 11021104136,458 1.19,21>227,113 19,914(19,914)4,096311209(2.265) 3,4'66(11) (427)

42728.933 &,466107.525 1115,736232.973 153.426340,498 269,16210.760 , 1,6207875 7.87513.125 13,10253386 3 1Ej69305,352 232,9.73-20.48 22.04

SoheduleINCOMETurnover (nef)Other incomeTOTALEXPENDITURERaw materials consumedPurchase of traded goodsPersonrnelexpensesOperating and other expenses(Increase) in InventoriesDepreciation I amcrtlsatlonFinancial expenses

1314

161 7is519rofit before axCurrent T ax .M iriifT IlJ m A lte rn atiy e T ax (MAT)Less :.MAT Credit EntitlementAdd : Utilisation of MAT CreditNet Current TaxDeferred tax (credit) r chargeIncome tax adjustrnentfet earlier yearsExcess MAT credit entitlement of e~.rlier yea(s written offTotal tax expensesNe raflt after 1a:x for the y(;!8 rBalance brought forwaro from previous yearAmount aVailable for AppropriationAPPROPRIATIONSTransfer to genel!l' reservsInterim dividendProposed final dividendTax en DividendSurplus carrled 10 Balance SneetEarnings per share (Rs.)Basic&diluted (Nominal value of shares Rs.l0).(PgWious year Rs."!0)Notes to Accounts

20

21The schedules referred to above includfflg notes te accouJ:ltsform an lnl~gral part of the Profft& Loss :.(I.CCOl!lnt.As per our report of eVen date For and on behalf of the Board of DirectorsFor S.A. BATLIBOI & CO.Rrm's Registl'atfoll No.: 301 003EChartered AccountantsPer Anll GuptaPartnerMembershIp No. B79~1Place: GurgaonDate: Apr1l1 a , 2611

Mana iD. tJla.,jCompany Secretary

J.. JainChief Flnanclal Officer

. K. (a urCEO & Whole Tim e Director

Nand KhemkaChalrm~n oum Managing DJrector

22


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310 33

/ INDAd/CASH FLOW STATEMENT FOR THE YEAR ENDeD 31st MARCH 2011

As at 31st March 2011A CAS:H FLOW FTlOM OPERAnNG ACTIVITIESNet ~r'6rnbefore laxAd jUS fllle n ls fS f :l i lePfeclatlQI'I I AfTiort isal l (JnP rO f i1on sa le ! disposal Q ~ x eda ss etS (!'le t)DMdend reqalvedP ro fiit'o n s ale p ! In ve stmen tsProvisIon for doubtful debts written baCkI nt er est e xpensesI r. r te fes t IndOmeOperating ptofilllefore working Cflpital changesMGvemenr~ In working capital :t l , nereaS6! i n ~undry debmrsflOr8a$e In Invertor-IesIrwr;~ase I f \ loans and ady~hcasr nc r. eas& n qU fr fln l l i a t : J i l l { ! e . s and p ro vis loASCash generated fram operationsDirect taxes (paIGl~Net cash flo w 1 ro m operllting activit iesB CASH FLOW FROM INVESTING ACTIVITIESPUrchase of ilxed ass!1fSPrOceedS from sale of fIxed assetsrn.ler~1e,I;1I3IveEl - ..Fll


25/46

"NDlla]Schedule 1 : Share Capital (As. '000')

!\Sat ststMarch, 2010

Author ised7 ,000,000 (P revious Y ear7 ,O OO ))O O) E qu ity S hare s of R s. 10 eachIssued, Sl. l lJscr ibed & paid up5,250,01l0 (Previous year 5,250.~OOl'Eql:ljty Shares of .Rs. 10 eachfully !'laid-up

70,000 7{),OOOS2,500 52,5-00

Schedule 2 : Reserves and SurplusAs 31s1

t'.!arch,2011As at 31s tMarc;h, 2010

Capital Reservea) Central Cash" SubsIdy (As per lastalsnce Sheet)~-ass:Ttansferred to Genera l AeSel'Ve911Com p ta tio n o f sp eo ifie d termsb) Profit o n re ls su e. o f f0 rfe fte d shares .~ p er la st Balance Sheet )

Saourltles Prem ium alilcQ UN (~ pe r last B ala nc e S ho ot)Gen~ra j reserveB ala ncE ! a s Ille r la st B alB J 1l< 9SheetA dd : T ra nsfe r, a d from C ap ita l A SS {jrve oncom ple tion of specif ied Te rms

a , Q O O 4,5001,500 3,013029

3.00029

45,000 45,00027,12Q 14,00P1,500

Add : Tr :J f l sfe rred fro m p ro fit a nd lo ss .a oc ou n;P r o f r t and Loss caeco4lf)'t 11,62-00,760 37,88Q305.3'52391,2&127,120232,973308,122

Schedule 3 : Secured Leana31~!20

As a 1"3 1s 1March,2010

C ar Iln ane a J eans r r o m banks(SeeurE!d b y hypothecat Ion 01 vehic!e$ flnan oed o ut of proceeds ofr oa n ) (Repayab le witHin on e yea r As. 213 (PreviGus year A s. 2 65Cash crean 1)0rrowfngs(Secured byfirst charge o n e n ~lre G lJ fre n t assets and f ixed assets o tlh 'a C ompa ny Including s t G e I < an d bO Gk de ets_ 5ueh charge is sharedboth present and iUM i! pa rrl passu Inter se.)

:. 3 478

72,092 72,548

73,02.6

As at 31stMarch,2010.9,647if ferences- in d ep re cIa tion a nd .o the r d iffe re nce s in brook o f I jx .e dassets as per tax books a n d f in a nc ia l tJaoksc

Gross d lf e rr ed t ax l iab il it ie sEffect of expen diture deb ileS to profit and loss account bu t a li owa lJ h !fO r tax PU[PO$8 in la llowing yearsProvision lor d ou b1 f~ 1 q eb ts a nd a dv an ce sG ro ss d efe rre d ta x- a ss ets

8,945 9.6471.112 6452.5414,253

N et O ete rre d T ax L 1a J:)illty 4,692 6,95724


26/46

~ ~ m ii ~qj cD N.......... ._... U)"T""""" _

'1JC:: ; : 5! ! ! ~X

J~-~-~~r--------+---+-----------+--r-~-+--+--r------------~~r-_'~ ~' i S 1 c ~C _:i:~ CU(I) IIIii:~

"CC.5

. . . . . , .. . . ,. , . . . .

ooC Dc ri

. . ., .. . . . .

CDen~. . . . .. . . .. . .

~ ~ ~ ! - ~_ . . . . .

IiO. . .~. , . .. . .


27/46

J

"ND4G"/

! Schedule 6 : Inventories (at lower of cost and net realfsable value) (Rs. '000' ) As at 31st As at 31starch,2011 March. 2010J Raw materials [Including "5tQck in transit Rs. 10.Q5,(l 96,347 74,967

I (Previous year Rs. 2.9.546)]! Packing marertals 2,069 710j Stares and spare parts [Induding stock in transit Rs. Nil 9.,956 9,536(Previous year Rs. 273)]l Work-in-progress 17.760 18,280 Finished goods [IMIUde traded goods of Rs. 1,069 122,131 108,102 (Previous year Rs. 559)1, 248263 211,595I Schedule 7 : Sundry DebtorsI sat31st As at 31st

March. 2011 March,201Q Debts autstanding for a period exceeding six months Unsecured, consldered good 2,966 495I, Unseouree, considered doubtful 7.333 7,774I Other debtssecured, considered gOOd . 8,711 7,613I Unsecured, consldered good .. 135,168 121,020I . 154,178 136,902Less: Provision for doub tfU l deb ts 7,333 7.n4

146.845 129,128,oNet of debits arntilunting to RS.5,237 (Previ0~s year As. 4,305)discounted from a bank

I Schedule 8 : Cash and Bank BalancesI Asat31st As at 31st~ March,2011 March. 2010, Cash on hand 310 33I Balanes with scheduled banks:I -on currentaccounts 8,497 8,096-on unclaimed dividend accounts 1,183 627-on fixed deposit accounts 2.715 2.546(ReCi:9tptsj}ledged with Banks I SaJesTax I Excise Authotifies)Post ,office savin1;Jsbank accatJnt 4 4(Pass Book ptedged with Excise Authorities) 12.709 11,306I Schedule 9 : Other current AssetsI As at 31st As at 31stI March 2011 March. 2010, Interest accrued on fixed depcslts 89 93I Expert benefits receivable 1,633 1~221,722 1,315I 26


28/46

Schedule 10 : Loans and Advances (Unsecured)l6NDAdl'(As. '000')

As at 31st A s at 31 S I.Ma rc h_ 2 01 1 March,2010

13.315 10,86631 353,496 1,06038,882 42,8304,316 4,732713 7 1 " 311D 1106Q,863 60,3


29/46

_Schedule 13: Turnover (Net)

INDA.

{Rs '000'

1493,5141,160

Year Ended31st Mareh,2011

S a l e sLess: fieb"ltes and claims

1,494,382B a S

1,111,81.1'6ale of services

V e a r E n d e d

1,11e,9~

v e a r e n JSchedule: 14 Other Income 31 st ~1arch,2011 31 at March, 2011Interest IncomeOn bank de posits (G ross, Ta x ded ucted a t se urce R s; 25. 227 1'3P re vio lJ s y ea r A s. a)On o th ers (G t0 ss , T ax d ed uc te d ~t s ou rc e N il. P re vio Us y ea r N il) -Un sp e nt lia biliU e s ~ cre d it b ala nc es w ritte n b ac k 1,943 9 7 9P ro fit o n s ale ! C iJ is po sa lof fixed a sse ts (N et of loss of A s. Ni l, P revlOL ls 394 1 dyear R s. 57 )P-ravision for d OU btfu l d e~ w ritten back 4 4 1 2.043F ore ig n e xc ha ng e U llG tlJ C I!io n(N et o f lo ss o f R s.2 8, P re vio us y ea r N il) 361D iV id e nd r ec eiv ed e n c urr en t in ve stm e n ts -Tr'ade . 259prom on sale o f cu rre nt in ve stm en ts - TraQe - 765M i sce lla n eou s ln cor na 4,722 , 4,1408,OB8 8,"341Schedule 15: Raw Ma te ria ls C on sum ed

Y e ar E nd ed year Endep- 3151 Merch. 2011 31st March , 2010Op en in g S to ok 74.967 36.278A dd : P urch ase s 1,122,057 664,911Less: Closing Stock 96.347 74,9B?1,1DO,Sn 826,228Schedule 16 : Personnel Expenses Year Enaed Year Ended

31st March. 2011 31st March, 2010Salaries, w ag es a nd bonus 54.237 46,138Con trib utio n to p ro Vid en t a nd o th er fu nd s 3,714- 2,939G ra tu ity e xp en se (R efe r to n ota n O.1 2) 4.268 62 7Workmen a n d s ta ff w e tfa re eX pa n se s 1,106 1,03763,325 50,741

28


30/46

SchedfJle 17: Operating and Other ExpensesL ' N D I I G ' 7

(Rs. '000')Year Ended Year ~nded

31st March, 29f1 31st March. 20108,607 10,,01a11.884 8,67740,150 38,00.210237 12,577701 4801,669 8398,524 7,4072,803 1,7552.541 ',52214,004 12~2'143.972 3.2191,301 1,373B,019 7.38415,461 6,954

1,985 1,280221 1 4 B304

54069 2.579 100 2,Ot i923530,629 26,86813 1,1151,832 1,585380 7'20

2,280 2,0366,088 5,4171,340 2,On3,810 1,8914,080 4..641

182,904 161,130

Year Ended Y e ar E nd ed31st March, 2011 31st March . 2010

17,760 18,:l!80122,131 108,102139,891 126,38218,280 4,073108,102 64,809126,382 6 8,B82(13,509) ( 57,500)

29

Oensurnptlonof stor~ a nd sp ate partsPack1n ,g expensesPower a nd fue lR e pa irs a nd ma in te na nc e:-Plant & Machlner:y-BiJl ldlngi?-Other~j;!e nt ( n elu dln g re nt on leasehOld land a f R s. 282,(prevh;)l4s year Rs.464)Rates & taxeslnsuranceTr(!,velling & eonveyanceCcmrnunleatlon costsPrinting & s~at ionaryLega l & professronal t~Director's remunerationsPayment to AUdi iorAsaudllC!lr:Audit FeeTax A ud it F eeASadvlseLor in any e th er c ap ae j1 y 1 1'1e sp ec t o f :For COR')pany Law Mattersln.other manner:Certif ication etc.Outofpecketex~ensesL ess o n exchange f luctuationsF re ig ht a nd fo rw ard in g c ha rg esBad debts written offVehicle running & maintenanoeD ire cto r's s lttfn g fe ~SecUrity and other service chargesServioe charg,es to G & F agentsAdvertisement & publicityC omm is sie n on sa le s (othe r tha n to s ole s ellin g a ge nts )Miscelllmeousekpenses

Schedule 18: (Increase) In Inventories

Closing stackWork-fn-progressF in is he d g op dsQpenh ilQ s tockWork. , . lnprograssFinished Goods


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~

llND~

SchedUle 19: Financial Expenses (A s. '{J OO ' ) 1Year Ended Year Endeq31s\ MaTch, 2011 31 s1 M arch, 201 0

Interest chargesOn car lOans from bankS, 42 70On other loans from banks 6,642 1,4:lO011 others 403 511Ban k c ha rg es 4,150 ~ 101

11.237 4,112Schedule 20: Earnings per share (EPS)

VearEnded YeatE11d~31st arch,2011 31 st March, 201Net profit as per profif and IlSS account 107,525 , 1)5,736No. of Equity Share at the beginning and clOSing of the year 5,.250,000 5,25010031Weighted avera!je number of equity shares for calctJlatlfiQ 5,250.000 5,250,000basic and diluted EPSNominal value of shares 10 108qsic and Diluted Ea,tnings 1 i l 9 r s ha re (R s.) 20.48 2 2 . 0 4

.

30


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Sc'hedule21 ; Notes to Aocou nts1. Natureof OperationsInoag Rubber Umited (hereinafter referred fo as the Company') is engaged in Ihe manufacturing and salllhg O fPreclJredTread Rubberand allied products.

2. Statement of Significant Accounffng Policies(a) 8asisof preparationThe finanolal sta teme nts ha ve been prepared to comply ina J l mate ria n re sp ec ts w ith th e accounting standardsnQtified by the Companies Accounting S~ndards RUles, 2006 (as amentled and the relevant provisions 0fthe Companies Act , 1956. The flnanoietstaternents have been prepared under he histori~1 cost conventi


33/46

lINDA(g) InventoriesInventorles are valued as f G i rows:Raw materials , stores and spaT9s.1'l8Ckingmaterlals an d traded g00ds Lower of cost and nel realizable value. Howeveand other items held mr use in tire Pfodl:Jctil!lIlinventories are hot 'Jrirren down below cost Itth&finisprGduets In w im they will be Incorporated, are expem!to be sold at or abovecost, Cost isdetermined on rnevweighted average method.

Lower oi cost and nel rsallmbls l ialue. Cost includirect natertafs and labour and a propottioFlmanufactur ing overheads based on normal opora!capaCity. cosus de ermined on monlhly moving weightaverage baSIS.Net reallsaf;jle value is the eslllttateq selling price In the oro nary course of business less estimated costcomptetion a nd e stim a te d c osts n ece ssa ry to m ak e the sa le

(h) Revenue RecOQnltion

Wotk In progress and fllniShed'goods (ownmanufactured)

Revenue is reoogl1lzoo to the extentlhat if is probaillelhallhe ecenornle benefits will floW to the Oompany andhrevenue can be reliably measuredSale olGooa.sReve rw e is r ec og nFs ed when th e significant risks and rewards of oWfl~rshjp atine goods nave passed 10the buSale ( ! ) f S eM ce s (Inco m e fro m s ervice s)Revenuefrom saleotservicests ret:ogr:lizedasandwhen lheserJ ices are rendered.InterestRevenue is rec0gni~d on a l ime prepernon basis tak ing Into account tbe amount outstanding and the raaf'lp iicabla. 'export BenefitsExport Entitlements fn the form of Duty Drawback Scherrra and D 1 l J t y EntiUement Pa~book Scheme arecognized in the P ro fit and Loss A ccou nt w he n the right t o r ec e iv e credit as per the te rm s of U'le schemeestal: l f i{ lhed In tespect Of experts made and when inere is ne signlnoonf uncertainty regarding th e ultimacollection ofthe relevant export proceeds.[)ivid~ndsReNenue-is recognized when the rightto re ee lv e payment Is est;abllshed by the bpjanoesheet date.

(i) Foreign currencytrBn.sJ:aUon(I ) InitialRe-cegni!lon

Forei9n currency transactions ars recorded ln the reporting currency, by applymg 10 the' feff l igh ctj~tenamount the exchange . ra te l: ), etween tlie- reporting ourrency and th e foreign currency 1 3 1 the datsot thtransaetlan.O l~ ConversionForei,gl1ourrency monetary items are teporteo using the Qlosing rate.Nan-monetary !tamswhioh arecarriecin terms of hlstorica Icost denominated in a foreig n eurrenoy-ara reported using 1hee )( cha rjge r at e at the Elalof the fransecnon: and non-monetary items which are earned at fair value or other similar ValUMOfdenomrnated in a I(!)reign c l, jr rency. are repertedusing the e xohan ge rate s tha t ex:isled when the values wer.determined(iill Exchange Dlffe rencas

Exchange differences ariSing on the settlement of menetary items, )r on reportfng such MonBt~items at ratas dffferent from those at .whioh they were initially recorded during the year, or reported iprevious rmant iel statements, are f '8cogntzed asjneomeor a expenses in the yearin which they arise.32


34/46

/INDAG1/0) Retirement and other benefits

L A etlr~ rn en t be ne fifs in the form of Provident Funq Mhere contributed to the Regional PFC om missioner) is a de fined can trib tJ tlon schem e and the con trtbu tions are . Ghafged l- o t ile prom andloss account of the ye ar w he n the centrtbulions to th e fund a re due. There srene other obligations otherthanthedootribut1on p~able to the respective authorities. ~Ret i rement benefits in !h e form of Prqvident Fund contributed 1 0 th e Trust set Up by the empJ0 : te r is 8d efin ed be ne fit sc he me and Ihe paym ents are charged 10 the Ptofit and Loss Aecoun t o f the yea r whenthe payments to the Trust are dUB_ Shortfall In the fUflEis, if any, isadeqillately provided tor by theCempany ,

ii. G'tatuity l i a b i l i : t y IS a def ined b'enefit obligatIOn and t s p rov ided for 011 th e b as is of an c tu ar ia t ,v alu atio n o nI' l rC)jecfedwnit c re d it m e th od c arr ie d by aT l lndepehc: feJ i tae lUary rT)adeat th e e nd at each f lnancia lyear.iii. Short te rm c om pe nsa te d absences a re p rov id ed tor based on estimates, Long term Compensateda bs en ce s a re p ro l:llid ed lor based on ao tuaHa l valuation on projected unit credit method carrlsd by . anIndependent actuary as a tth a e n d o fe a ch ye .a r.iv , Actuarial ga in s llo s se s a re im r nedia te l~ take., to p ro fit a nd to ss .a oc eu nt a nd a re n o t c;teferred.

(K) lncometaxesTax expense comprIses of cu rre nt a nd deferred tax. Gunren t income tax I:;;measured atthe amount expected to bepaid to th e In com e ta x a LJ th or itie s in a ec er ea n ce w ith th e I n come- ta : x Ac t, 1961 enacted In I ndi a. De fe rred lneemeta x re fie cts th e Im p ac t ef current Y e $ l , r t iming differences between taxable lnc0me and aQcQun tln g ln cC ilme fo r t l'leyear -and r eve rsa l o f t1mi l' lg dt f fe .rences of earlieryears.D e fe rre d ta ~ is me as ure d b as ed 0[1) the tax ra te s a nd the-tax l aws ell8cted ~r substan t ive ly enaofedatthe balancesheet date. Defa_rred tax. assets>8l11d de fe rr ed la x lia b IlI tie s are offset, ita l ega ll y en10 rceab le r ignt e xts ts to se !. o ftc u rr en t la x a sse ts aga 'f .n s f,c llr re llt~ a x lia b il; ie s and th e deferred ta x a ss ets a nd deferted la x Uab !!it ie s r ela te t o theta xe s o n in com e le vie d by s ame -g ov ermng ta xa tio n law s. D e fe rre d t~ asse ts a re -recCJ f jn izeoon ly t o t he e>c ten tt h. a tl l: le~e Is reasanaI: ) le certainty t ha t. su ff iC ie n t f ut ur e ta x ab le I nceme will b e a va lla hle a ga in st w hic h s uc h d efe rre d taxa ss ets c an b e, r e aliz ed .In gitua!lofrl s Where th e Company h as u na bs orb ed d e pr e:c iaU o 1 '1 o r c ar r,y fo rwa rd ta x lo sa e s,all de te rr ed lID : .a s se ts a re r eco gn iz e d 0 . M l y if thare is V ir tu al c erta in ty s llp p or te d b y convincing evidence tlhat suchd e fe rr ed 'f8 X qS s ets c an b e realized aga in s t f ut ur e taxable profits.A t each balance sheet date, the Company re-assesses unrecognIZed deferred tax assets. It reeogfl ize~unrecognized deferred ta x assets to t~ e e xte nt tha t it has become re as on ab ly c erta in o r v irtu allY c ert-a in , a s th ecase m ay be tha. s u'tfr cfe n t fu tu re ta xa ble in come w ill b e a vaHab le a g ain st wh ic h such d e fe rr ed ta x assets can be~earlzed.The carrying amoun t of deferred tax asse ts are re view ed at each ba lance she et da te . The C om pa ny writesdownth e .c arry in g am ou nt o f a d efe rre d ta x a ss et to th e e xte nt th at It Is n o lo ng er re as on ao ly c erta in .e r v irtu ally c erta ln ,as tne case may be, thatsufticient fu tUTataxable !ncome wil l be available against which deierrel fax asset can befeaJ jz_ed .Any s uc h w ri1 e d own is r ev er se d to the extent IM al It b ec ome s r ea so na bly certa in or 'V Ir tu a lly c e rt ain , a sthe case may be , t ha t su ff iC i .e r :r tf ut ur l'! t a xab le incomewill be avai lab le.MAT credi t is re co gn iz ed a s an asset o nly w he n andto the extent there Is Con \l in c lng ev idenQe that tile Companyw ill p ay n crm a l in com -e ta x d urin g the s pi9d fle d perioo In the ye ar in w illc h th e M in im um A lte ma tive fa x (MAT)c rs dtt b ec ome s eligible te be recognIze(! as an asse t in accordan ce w ith the reeommendatrons c on ta in ed ing ul d an ce n ote Is su ed by tn e In sm u te o f C ha rte re d A cc ou nta nts o f In diS c. he s ald a ss et Is c re ate d by w ay of a cre ditto the IiIro fit and loss a ccount a nd show n as MAT Credit EntiU13ment. Tt'te Company re vie ws th e same at eachb ala nc e-s he et d ate a nd w rite s d ow n tn e ea rrying a mount of M AT C led it E ntitlem en t to the e xt~ ( lhere is n o IGn g erco nv ln o in g e v id en ce t o fhe e ffe ct th at CompMY will pay no rr na t t nce rn a tax du ri ng t ile specified per ied.

(f' BorrowIng CostBorrowing c osts d ire cU y a ttrlbu ta bte to the a cq uisition , con stru ctie n o r p rod uctio n o f a n a sse t tha t n ece ssa rilytakes a substan1iaJ p eriod of time to ge t ready fo r i~ In te nd ed u se or s ale a re capitalized as par'tQJ tha eost of therespective asse t. A ll o ther borrow ing cas s are expensed in the period th ey occ ur. B orrOW in g cos ts ce nslst o fin terestand otherOGstslMa1 a n e n 1ity in cu rs In c on n ec tio n w ith tr le bG rroW in g o f f I . J n " d s .

33


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(m) Segment ReporUng PoliciesThe Company prepares its segment information in conformity with the accounting pa'licies adopted for Preparand presenting the financlal statements oftli le Oompany as a whole.

(nJ E,unings: Per ShareBasic earnings per share are calculated by dividing 1M n\3t profit or loss for the year artrlbut.abJe to eqlJSMClreh(llders by the weighted average number of equity shams oufstanding during the year. The weightaverage number of eqVl tysnares outstanding during the year are adjusted for events of bonus tssua; bonelement Ina rights issue to eXisting shareholders; share split and reverse share split (consolidatJon of shares).For the pl:lrpose O f calcuJalting diluted earnrnqs per share. the net profit or loss far U'leyear attributable to equshareholders and ltIe weightee average nlJrt1ber of shares outstanding dUring the y ea r a re adjusted ftlrthe effeof all dillltive potential equity shares.

(0) ProvisionsA provision is r ecogni: Led wh ljn an enterprise has j3 prasent obligation as a result 01past event; iU s probable lhan outflow of resources will be required to settle the obligatIon, In respect of whIch a reliableootirnate oan be maProvisiOns a re not discounted 10Its presenf value and are delarmined based on best estimate reqUired to settle thobligail!on at the ba1ance sheet date. These are rev iewed at eaoh balance sheet date and are a-dJwsted to reftael tourrent best estimates

(p) Cash and cash equivalentsCash and cash equivalents in th e cash flow stalemenf comprise cash at bank and In hand, cheques in nand ashert tern !nveStrnents with an anginal maturity of three months or less.

(q) GovemmeotgrBntsandsubsidiesGrants and subsldles from the government are recognized when there I S reasonable assurance that it.gr.ruiV subsidywfll be received and all attaching condit ions will be complied WIlI1.When the grant or sUbsidy {elates to an expense item, it is recognized as income over the periods necessary match them on a systematic 'ba"sts to the costs. which II Is intended 10 oompensate. Where. the grant or substretateste an asset. Itsvalue is deduo1ed Inarriving atths carrying amountof the related asset, Government granofthe nature of promoters' co ntrlbUtfon are oredi ted to capftal reserve and treated as a part 01shareholdars' funds

3. Segment InformationT he C om pa l'1 Y is engag~d in the manufacturing ofthe PrecuredTread Rubber, Bond1ng Repair and ExtrUsion Guand Rubber Cement. which are USeCOlOrflxir:tg on old used lyres. These products do not haveany different risk areturns and thus the-Company has only one buslr le:s,sse .gmentSegment InformationThe Company has organized its manljfaoturin!;'l opera lions int0 two major geographical segments: Domestic ~I nd ia : } and Exporto(0ulside India}The analysis of eograpl'lica Isegments is based en the geographical location of the customers.The geographical segments considered for disci osure are as follows Sa les w i1 :h\o Ind ia tnG ll Jde sa les to eustomers located withIn lndla,

Sales outside India include sates 10 customers located ourslde IMia.The fonowing table snows the dJstr lbuf ian of the Company's consolidated sales and debtors by geograj)hloamarket. r.egardless of where Lhegoads wer.e produced:Sales (net) revenue by Geographical Market

(Rs.'OOO

DomesticEJc;portTotal

31 st March 201 11,417.28677.388

31 st M aron , 201 o1,065.72147.244

1.494,674 1,'12.96534


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Carrying amotmtQf Segmeqt A s.sE !:is (Debtors) by Geograpl1ical Market

315t March, 201 1137,7679,078

Domest iC'Expo r tTotal

(Rs:OOO)31stMa~h,2010

126,5012.,627

146.845 129,128The CoMpany has G(lImrrlot} fiXed assets in India lor proquGing goods/pfovidlPlg ser 'v loes 10 domestiC aswe ll a s o ve rs ea s market. Hence . s:e!_:lprate f igLlres for fix.ed asse ts! a dd ition to ,fiX ed a sse ts ha ve not beenfurnished.

4. Related Party Drsclosure fR s. 'DOD )Totalnterprises owned

or slgnlflcantlvinnuenced by keyManagement

personnel or theirrelatIves (eitherIndlvlduallv or with

Others)

Relative of KeyManagement

PersonalKey Management

Personal

31 st 31stMarch March2011 2G10

Purctmses(Raw Materials,S to re s, S p e.re s.& P ee kin g,Mater ja~ 'S) Unlpalql:l RUt!ber L,lmited 280Hen! paid-KhemkaAvjatioA P(iwle Ltd. 5.2c94,956R.emunetation- M r; K .f


37/46

5. lncometaxThe Com pany has rill date reco\ilniz.ed As. 3B.882 (previous year As. 42,830) a'SMinimum A-ftemat& Tax (MAT)c re d it e n! ilIe rn el'1 l, w h ic h r ep re se nt s t ha t p or tit;jn 0f, th e MAT l-fa blltty , th e credltol which wow(d be aval la e l e i basedon the -p rovis Ion of Section 115 JAA of the lncome Tax Act, 1961. The Managementbased on the fUture Profitabilityproiectlons and atse prof[tTearned durfng the year is COnfident Ihatthere would be sufficient taxable grofit in futur-ewhic h w ill enable 1 he C om pa ny to u tilize ~ he a ae ve MA T o re dlt E i r i ti tl em ant.

Estimated amount of contracts: remaining to be executed on capita:l accountand hoi prl!lvided fo(. (Net ofadvances of Rs.1,541 , Previous year Rs. 2,658)7. Contingent Usbll ties (not provided tor) In respect 01:a) The Company ~sUnder litigation with t h. e revenue authorities. regardingexpenditure claimed by th e Compan y anslngj out of an arbrt~l(:m award.As per1he CorTu:;)any.he expendltureshauld be allowed to them in the yearthe arbitr.l3.terhas passed tne awal'!.The department is 0f the view 1I1at the.liability is not a.ccrued till the aware! becomes a rule of c@Urt and hasthereforl i l drsallQ~ed the expend lt ure" in t he AY 98-99 (the year In which !heCompany claimed the expenditure). DUr.ingthe fli1anciaJ year 2006-200.7.the CO rT )pany has r sc elv ed 'a demand n otic e fre rn In come ta x: a uth orit.ie spursuant to rhe ordar by tneome tax Appellate Tribunal, Delhi. TheOc: lmpany is I lresently In appea l before. the Hon'ble High Court. TneCompany has depositad -As. 2,00.0 against the demand and w ln ich isappearing In.the sehsdula ott.oarrs and Advances,b) Demands raised by th e Service Tax Authorities but dispUted by theCompany and1tile appeal Is p en d in g befo re theCESTAT.0 ') Pending Labou r casesd) Demands raiseD by the Sales Tax Authorities, being disputed by theCompal '1Y.e) Excise dUty liabi IItyfur DG Se t ca se p endmg beforeGESTATf) Differential amount of oustom duty payat:lle. b y the Company In case

01 n ol1 'lu lf lllm e n tc :lt e x po rt o blig at io n in clUd in g interest thereo against th eim port o f capital gOeQ s h ')a de a tc on ee ss lo na l ra fe o f duty. Based on fu tu resales plans. m anagem en t is quite h opeful to meet ou t th e e xpo rt o blJ g at lo llbyexecut ing1:he relqulredvdlUlne.of e xp or ts in the futureg) C la ims a g ain st the COrr'lJilBr:lYnot aqkfloWIed.ged as debts

Based on the dlscusslons with the soJio.itorlexpert opinions takentstatusof the case , he managemen t believes thai the Company has strongchances et success in above mentioned oases and hence no provisionthere against Isconsidered necessary at Ih~ poinl. in t ime.B . LeasesOperaUng LeaseThe Company has taken office andwarehouse premises under operating lease agreements; There is no pu rchaseop tion ( n :t li e lease agreements. There is no esCalation clause in the lease agreement There-are no restricttonsimposed I : ! y lease arr~ngemel'ils. Therear9 flO sUb.leases. Theag~eements are generally cancelable at the mutualco ns en t o f b oth the lessor and the Jessee.

(Rs.'OOO)

6. Capital Commitments

Lease paymen'ts fo~the year 31stMarch 2.0118,205

37

IINDAd'!

(As. 'OOO)31st 31starch March2011 20102,702 1n,560

15,915"

193 193"1,250' 1,120"1,111 1,158"

917'"2,267 2,267

1,829"

22,565 21,570

.31stMarch 20106,893


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9. As perthe requirement of Clause 40b. of the List1ngAgreement, the rnlntrnurn public shareholding in aputllfcG0rnpany $fiol!lld at least 0&25"/., er al:j:Oveef the total pald upcapilfll. ThepUbl ic sha f "eho ld lng e f1 tle -Cernparat MarcFl 31,2011 was 2?95%.The- promoters of the Cernpany are in the process of off 10,; ; id ingtn e shaP.ensurethatthe Oompa.ny oomplles with the aforesaid clause.1D. Detailso1dues to Micro, Small and Medium Enterprises as per Micro, Small and Medium EnteDevelopment (MSMED) Act, 2006

(Rs.31stMarch 3'stM~2011 201

N il MINil N~

The prinCIpal amount and interest due thereon remainrng unpaidtoany supplier aset the end of each account ing year.2 The amol.lrit of interest paid by the buyer In errns of Section 16,of the' Micro Small and Medium Enterprise Development Act,

2006a10Ag with the amounts of the payment made to thesupplier be-yondtheoappolr l ted ~y Burlng eacf i acpountfng year .3 The arnmmt o f In f. l:nes l due anl;f payable for tl]e periGS of delay in

making payment (which have been paid but beyond theappointed day during the year) btrt without addIng the-interests_p~lfied under M'lor0 Small afjd M'edl~m EnterpriseDevelopmentAct, 2006.

4 The amount of interest accrued aAd remaining unpaid at the endo f e ac h a ee ou rru n 9 year ; and5 The am oun t of f.urther intere-s_tre main in g d ue and pa ya b.le evenjn the Sl,Icceeding yea,rs, u f1 ti l such date when the in te re s t d u e- sas ab('weareactuaJly paid to the small enterprise for the'purposeof disal lowance as aded

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