Thirtieth Annual Report 2013-14 - India Glycols Limited · the time being in force), M/s. R.J. Goel & Co., Cost Accountants, appointed as Cost Auditors of the Company by the Board

India Glycols Limited

ThirtiethAnnual Report

2013-14

Forward-looking statement

Across the pages

• Corporateinformation 1

• Notice 2

• Directors’report 16

• ManagementDiscussion&Analysis 24

• ReportonCorporateGovernance 30

• IndependentAuditor’sreport 37

• BalanceSheet 40

• StatementofProfit&Loss 41

• CashFlowStatement 42

• NotestotheAccounts 43

• StatementpursuantofSection212 68

• IndependentConsolidatedAuditor’sreport 69

• ConsolidatedBalanceSheet 70

• ConsolidatedStatementofProfit&Loss 71

• ConsolidatedCashFlowStatement 72

• NotestoConsolidatedFinancialStatements 74

In thisAnnualReportwehavedisclosed forward-looking information toenable investors tocomprehendourprospectsand takeinformedinvestmentdecisions.Thisreportandotherstatements-writtenandoral-thatweperiodicallymakecontainforward-lookingstatementsthatsetoutanticipatedresultsbasedonthemanagement’splansandassumptions.Wehavetriedwhereverpossibletoidentifysuchstatementsbyusingwordssuchas‘anticipate’,‘estimate’,‘expects’,‘projects’,‘intends’,‘plans’,‘believes’,andwordsofsimilarsubstanceinconnectionwithanydiscussionoffuturepeformance.

Wecannotguaranteethattheseforwardlookingstatementswillberealised,althroughwebelievewehavebeenprudentinassumptions.Theachievementofresultsissubjecttorisks,uncertaintiesandeveninaccurateassumptions.Shouldknownorunknownrisksoruncertaintiesmaterialise,orshouldunderlyingassumptionsproveinaccurate,actualresultscouldvarrymateriallyfromthoseanticipated,estimatedorprojected.Readersshouldbearthisinmind.

Weundertakenoobligationtopubliclyupdateanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorothrwise.


30th Annual Report 2013-14 | 1

BoardofDirectorsU.S.Bhartia Chairman&ManagingDirector

JayshreeBhartia Director

PradipKumarKhaitan Director

JitenderBalakrishnan Director

RaviJhunjhunwala Director

JagmohanN.Kejriwal Director

R.C.Misra Director

M.K.Rao ExecutiveDirector

AuditCommitteeR.C.Misra Chairman

JagmohanN.Kejriwal

PradipKumarKhaitan

M.K.Rao

StakeholdersRelationshipCommitteeR.C.Misra Chairman

U.S.Bhartia

JagmohanN.Kejriwal

ChiefExecutiveOfficerRakeshBhartia

ChiefFinancialOfficerAnandSinghal

CompanySecretaryLalitKumarSharma

StatutoryAuditorsLodha&Co.,CharteredAccountants

CostAuditorsR.J.Goel&Co.,CostAccountants

BankersStateBankofIndia

StateBankofPatiala

AxisBankLimited

PunjabNationalBank

UnionBankofIndia

IDBIBankLtd.

StateBankofHyderabad

StateBankofTravancore

StateBankofBikanerandJaipur

RegisteredOfficeA-1,IndustrialArea,

BazpurRoad,Kashipur-244713

Distt.UdhamSinghNagar,

Uttarakhand

CorporateOffice3A,ShakespeareSarani,

Kolkata-700071

HeadOfficePlotNo.2B,Sector-126,NOIDA-201304

Dist.GautamBudhNagar,

UttarPradesh

Registrars&TransferAgentsMCSLtd.

F-65,OkhlaIndustrialAreaPhase-I

NewDelhi-110020

CorporateInformation

2 | 30th Annual Report 2013-14


NoticeNOTICE isherebygiven that theThirtiethAnnualGeneralMeetingofthemembersofIndiaGlycolsLimitedwillbeheldonSaturdaythe20thdayofSeptember,2014at12.30p.m.at theRegisteredOfficeof theCompanyatA-1, IndustrialArea,BazpurRoad,Kashipur,DistrictUdhamSinghNagar,Uttarakhandtotransactthefollowingbusinesses:1. Toreceive,considerandadopt

(a) theauditedFinancialStatementsoftheCompanyforthefinancialyearendedMarch31,2014,theReportsof theBoardofDirectorsandAuditorsthereon; and

(b) theauditedConsolidatedFinancialStatementsoftheCompanyforthefinancialyearendedMarch31,2014andreportoftheAuditorsthereon;

2. Todeclareadividendonequityshares.3. To appoint aDirector in place of Shri U.S. Bhartia

(DIN:00063091),who retiresby rotationandbeingeligible,offershimselfforreappointment.

4. ToappointStatutoryAuditorstoholdofficeuptotheconclusionof thenextAnnualGeneralMeetingandtofixtheirremuneration.

SPECIAL BUSINESS:5. Toconsiderandif,thoughtfittopass,withorwithout

modification(s),thefollowingresolutionasaSPECIAL RESOLUTION:

“RESOLVEDTHATsubjecttoprovisionsofSections197, Schedule V and other applicable provisions,if any, of the Companies Act, 2013 (including anymodification(s)orre-enactmentthereof, for thetimebeing in force) and subject to the approval of theCentral Government, if required, Shri U.S. Bhartia,Chairman & Managing Director (DIN: 00063091)bepaid the remuneration, perquisites, benefitsandamenitiesforaperiodnotexceeding2yearsw.e.f.1st April,2014asperthedetailsmentionedbelow:

Remuneration:a Salary TheChairman&ManagingDirectorshallbepaidsalary

of 20,00,000(RupeesTwentylacsonly)permonth.b Commission Notexceeding4%ofthenetprofitsoftheCompany

foreachfinancialyearcomputedinamannerlaiddowninsection198oftheCompaniesAct,2013.

c Perquisites: Inadditiontothesalary,theChairmanandManaging

DirectorshallbeentitledtothefollowingperquisiteswhichshallbeevaluatedasperIncomeTaxRuleswhereverapplicable,intheabsenceofanysuchrule,perquisiteshallbeevaluatedatactualcost;i unfurnishedresidentialaccommodation;ii furnishingofresidenceuptoanamountnot

exceeding` 5.0lacsperannum;iii gas,electricity,waterasperbillsproducedto

theCompany;iv medical reimbursement–medicalexpenses

incurredactuallyforselfandfamily;v club fees for two clubs including admission

andotherfees;

vi leavetravelconcessiononceinayearforselfand family to any place in India byAir/Rail/RoadasperRulesoftheCompany;

vii Mediclaim and Personal Accident Insurancepremiumnotexceeding`20,000perannum;

viii ContributiontoProvidentFundasperrulesoftheCompany;

ix Gratuity not exceeding one-half month’ssalaryforeachcompletedyearofservice;

x company’s car with driver for official andpersonal use;

xi Telephone facility at residence and mobilephoneforbusinesspurposes;

xii LeaveencashmentasperCompany’srulesi.e.15daysforeverycompletedyearofservice.

Providedfurtherthattheaggregateofremunerationby way of salary, commission, perquisites andallowances etc. payable to Shri U.S. Bhartia,Chairman and Managing Director (DIN: 00063091)shallnotexceed5%oftheNetProfitsoftheCompanyinafinancialyearcomputedinthemannerlaiddownunderSection198oftheCompaniesAct,2013andwithintheoveralllimitprescribedunderSection197readwithScheduleVoftheAct.”

“FURTHERRESOLVEDTHATtheBoardofDirectorsoftheCompanyontherecommendationoftheNominationandRemunerationCommitteebeauthorizedtoannuallyreviewthesalary,commission,perquisitesandallowancesetc.payabletoShriU.S.Bhartia,ChairmanandManagingDirector(DIN:00063091)andauthorizedtorestructuretheremunerationpayablewithintheoveralllimitof5%oftheNetProfitsoftheCompanyinafinancialyearcomputedinthemannerlaiddownunderSection198oftheCompaniesAct, 2013 andwithin the overall limit prescribed underSection197readwithScheduleVoftheAct.”

“FURTHER RESOLVED THAT notwithstanding totheaboveintheeventofanylossorinadequacyofprofit in any financial year of the Company duringthetenureofShriU.S.Bhartia,(DIN:00063091)asChairman andManagingDirector of theCompany,the aforesaid remuneration shall be the minimumremunerationpayabletohimorasmaybeapprovedby theshareholdersbywayofspecial resolution toremainvalidforaperiodoftwoyearsstartingfrom1stApril,2014.”

“FURTHERRESOLVEDTHATif theChairmanandManaging Director holds an office as managerialperson in any other company his remuneration shall not exceed the higher maximum limit admissiblepursuanttoscheduleVtotheCompaniesAct,2013from any one of the Companies of which he is amanagerialperson.”

“FURTHERRESOLVEDTHAT thedraftagreementfor revision of salary of Chairman and ManagingDirector(acopythereofdulyinitialedbytheChairmanfor the purpose of identificationwas placed on thetableatthemeeting)beandisherebyapproved.”

“FURTHER RESOLVED THAT Chief ExecutiveOfficer, Chief Financial Officer and CompanySecretarybeandareherebyseverallyauthorizedto



fileapplication,ifrequired,withtheCentralGovt.andexecuteAgreementwithShriU.S.Bhartia(00063091)forandonbehalfoftheCompanyforreappointmentasChairmanandManagingDirector.”

6. Toconsiderandif,thoughtfittopass,withorwithoutmodification(s),thefollowingresolutionasaSPECIAL RESOLUTION:

“RESOLVED THAT subject to the provisions ofSection 197, Schedule V and other applicableprovisions, if any,of theCompaniesAct, 2013andsubject to other approvals, consents and sanctionsasmayberequiredtobeobtainedfromanyauthority/ies,theNonExecutiveDirectorsoftheCompanybeand are hereby authorized to receive remunerationbywayofcommissioneveryyearsuchsumorsumsandinsuchmannerasmaybedecidedbytheBoard,not exceeding 1% per annum of the net profits ofthe Company, to be paid and distributed amongsttheDirectorsoftheCompany(otherthanChairmanand Managing Directors and Executive Director)andsuchpaymentshallbemadeoutoftheprofitsoftheCompanyforeachyearforaperiodoffiveyearscommencingfrom1stApril,2014.”

7. Toconsiderandif,thoughtfittopass,withorwithoutmodification(s), the following resolution as anORDINARY RESOLUTION:

“RESOLVED THAT Pursuant to the provisions ofSection 148 and all other applicable provisionsof the Companies Act, 2013 and the Companies(Audit and Auditors) Rules, 2014 (including anystatutory modification(s) or re-enactment thereof forthe timebeing in force),M/s.R.J.Goel&Co.,CostAccountants, appointed as Cost Auditors of theCompanybytheBoardofDirectorsoftheCompanybepaid remunerationof`1,25,000/- (RupeesOneLacsTwentyFiveThousandonly)plusactualoutofpocketexpensesforconductingCostAuditoftherecordsoftheCompanyforthefinancialyear2014-15.”

“FURTHER RESOLVED THAT the CompanySecretarybeandisherebyauthorisedtofilerequisiteformseekingapprovaloftheCentralGovernment,ifany,requiredfortheappointmentofCostAuditorandalso obtain such other approvals/sanctions asmayberequired.”

8. Toconsiderandif,thoughtfittopass,withorwithoutmodification(s),thefollowingresolutionasaSPECIAL RESOLUTION:

“RESOLVED THAT pursuant to the applicableprovisions of the Companies Act, 2013 and Rulesthereunder or any other law for the time being inforce and anymodification(s) thereof, theBoard ofDirectorsoftheCompany,aspertherecommendationoftheNominationandRemunerationCommittee,beand is hereby authorized to approve the paymentof remuneration to Ms. Pragya Bhartia, President,Business Development of the Company, of anamountnotexceeding` 2,50,000/-p.m.”

“RESOLVED FURTHER THAT the Board ofDirectors of the Company on the recommendationoftheNominationandRemunerationCommitteebe

authorized to revise the remuneration from time totimesubject to themaximumlimitprescribedundertheCompaniesAct, 2013andRules thereunder orany other law for the time being in force and anymodificationsthereof.”

“RESOLVED FURTHER THAT the CompanySecretarybeandisherebyauthorizedtotakenecessarystepsasarerequiredundertheCompaniesAct,2013inordertogiveeffecttotheaboveresolution.”


“RESOLVEDTHATpursuanttotheprovisionsofsection149oftheCompaniesAct2013readwithScheduleIVandallotherapplicableprovisionsoftheCompaniesAct,2013andtheCompanies(AppointmentandQualificationof Directors) Rules, 2014 (including any statutorymodification(s) or re-enactment thereof for the timebeinginforce)andClause49oftheListingAgreement,ShriPradipKumarKhaitan(DIN:00004821),inrespectofwhomanoticehasbeen received fromamemberproposing his candidature for the office of Directorsundersection160oftheCompaniesAct,2013,beandisherebyappointedastheIndependentDirectoroftheCompanyforaperiodnotexceedingfiveconsecutiveyearswitheffectfrom1stOctober,2014asperthetermsandconditionscontainedintheLetterofAppointmentissuedbytheCompany.”

10.Toconsiderandif,thoughtfittopass,withorwithoutmodification(s), the following resolution as anORDINARY RESOLUTION:

“RESOLVED THAT pursuant to the provisions ofsection 149 of the Companies Act 2013 read withSchedule IV and all other applicable provisionsof the Companies Act, 2013 and the Companies(Appointment andQualification of Directors) Rules,2014 (including any statutory modification(s) or re-enactment thereof for the time being in force) andClause 49 of the Listing Agreement, Shri RameshChandraMisra(DIN:00063146),inrespectofwhomanoticehasbeenreceivedfromamemberproposinghis candidature for the office of Directors undersection160of theCompaniesAct,2013,beand isherebyappointedastheIndependentDirectoroftheCompanyforaperiodnotexceedingfiveconsecutiveyearswitheffect from1stOctober, 2014asper theterms and conditions contained in the Letter ofAppointmentissuedbytheCompany.”


“RESOLVED THAT pursuant to the provisions ofsection 149 of the Companies Act 2013 read withSchedule IV and all other applicable provisionsof the Companies Act, 2013 and the Companies(Appointment andQualification of Directors) Rules,2014 (including any statutory modification(s) or re-enactment thereof for the time being in force) andClause49oftheListingAgreement,ShriJagmohanN.Kejriwal (DIN: 00074012), in respect ofwhoma



noticehasbeenreceivedfromamemberproposinghis candidature for the office of Directors undersection160of theCompaniesAct,2013,beand isherebyappointedastheIndependentDirectoroftheCompanyforaperiodnotexceedingfiveconsecutiveyearswitheffect from1stOctober, 2014asper theterms and conditions contained in the Letter ofAppointmentissuedbytheCompany.”


“RESOLVED THAT pursuant to the provisions ofsection 149 of the Companies Act 2013 read withSchedule IV and all other applicable provisionsof the Companies Act, 2013 and the Companies(Appointment andQualification of Directors) Rules,2014 (including any statutory modification(s) orre-enactment thereof for the time being in force)andClause 49 of the ListingAgreement,ShriRaviJhunjhunwala(DIN:00060972),inrespectofwhomanoticehasbeenreceivedfromamemberproposinghis candidature for the office of Directors undersection160of theCompaniesAct,2013,beand isherebyappointedastheIndependentDirectoroftheCompanyforaperiodnotexceedingfiveconsecutiveyearswitheffect from1stOctober, 2014asper theterms and conditions contained in the Letter ofAppointmentissuedbytheCompany.”


“RESOLVED THAT pursuant to the provisions ofsection 149 of the Companies Act 2013 read withSchedule IV and all other applicable provisionsof the Companies Act, 2013 and the Companies(Appointment andQualification of Directors) Rules,2014 (including any statutory modification(s) or re-enactment thereof for the time being in force) andClause 49 of the Listing Agreement, Shri JitenderBalakrishnan(DIN:00028320),inrespectofwhomanoticehasbeenreceivedfromamemberproposinghis candidature for the office of Directors undersection160of theCompaniesAct,2013,beand isherebyappointedastheIndependentDirectoroftheCompanyforaperiodnotexceedingfiveconsecutiveyearswitheffect from1stOctober, 2014asper theterms and conditions contained in the Letter ofAppointmentissuedbytheCompany.”

14. Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasaSPECIAL RESOLUTION:

“RESOLVEDTHATpursuanttotheprovisionsoftheCompanies Act, 2013, (including any amendmentthereto or reenactment thereof), and such othernecessary approval(s) if any, as may be required,approvalbeandisherebyaccordedtoalterArticlesofAssociationoftheCompanybydeletingtheexistingArticleNos.4(c)and69andinsertingthenewArticles4(c)and69inplacethereof:

4 (c).Subject to theprovisionsofSection55of theAct

and theseArticles, theCompany shall have powerto issue Preference Shares carrying a right toredemptionoutofprofitswhichwouldotherwisebeavailable for dividend or out of the proceeds of afreshissueofsharesmadeforthepurposesofsuchredemptionsubjecttoprovisionsofSection55oftheAct,exercisesuchpower insuchmanneras itmaythinkfit.

69.Nobusinessshallbetransactedatanygeneralmeetingunless a quorum of members as prescribed undertheCompaniesAct2013,includinganyamendmentthereof, is present at the time when the meetingproceedstobusiness.”

15. Toconsiderandifthoughtfit,topass,withorwithoutmodification(s),thefollowingresolutionasa SPECIAL RESOLUTION:

“RESOLVED THAT inaccordancewiththeprovisionsof Section 41, 42 and 62 and other applicableprovisions, if any,of theCompaniesAct, 2013andRulesthereunderasalsoofanyotherapplicablelaws,rules,regulations,(includinganyamendmenttheretoor re-enactment thereof for the timebeing in force)andsubjecttoallotherapplicableRules,Regulationsand Guidelines of the Securities and ExchangeBoard of India (“SEBI”), the applicable provisionsof Foreign Exchange Management Act, 1999(“FEMA”),ForeignExchangeManagement(Transferor issue of Security by a PersonResidentOutsideIndia)Regulation, 2000, Issue of ForeignCurrencyConvertible Bonds and Ordinary Shares (ThroughDepositoryReceiptMechanism),Scheme,1993andinaccordancewiththerules,regulations,guidelines,policies, notifications, circulars & clarificationsissued / to be issued thereon by the Governmentof India (“GOI”), Reserve Bank of India (“RBI”),Securities and Exchange Board of India (“SEBI”),theDepartment of Industrial Policy and Promotion,Ministry of Commerce (“DIPP”), the ForeignInvestment Promotion Board (“FIPB”), the Ministryof Finance (Department of Economic Affairs) and /oranyotherRegulatory /StatutoryAuthoritiesand/orotherAuthorities/Institutions/Bodies(hereinaftersinglyorcollectively referred toas the “AppropriateAuthorities”)andinaccordancewiththeprovisionsintheMemorandumandArticlesofAssociationof theCompany and the Listing Agreements entered intoby the Company with the Stock Exchanges wherethe shares of the Company are listed and subjectto such approvals, consents, permissions andsanctions of the Appropriate Authorities concernedand subject to such conditions and modifications,asmaybeprescribedbyanyofthemwhilegrantingsuchapprovals,consents,permissionsandsanctionswhichmaybeagreedtobytheBoardofDirectorsoftheCompany(“Board”)(whichtermshallbedeemedtoincludeanyCommitteewhichtheBoardmayhaveconstitutedorhereinafterconstituteforexercisingthepowersconferredontheBoardbythisresolution),theCompanybeandisherebyauthorizedtoissue,offerandallot(includingwithprovisionsforreservationonfirmand/orcompetitivebasis,ofsuchpartofissueand


30thAnnualReport2013-14|5

forsuchcategoriesofpersonsasmaybepermitted),inthecourseofoneormoredomesticorinternationaloffering(s) with or without Green Shoe option,includingbywayofaqualifiedinstitutionalplacementunder Chapter XIII A of the SEBI (Disclosureand Investor Protection) Guidelines, 2000 (“SEBIGuidelines”),toeligibleinvestors(whetherornotsuchinvestorsaremembersoftheCompany,orwhetherornotsuchinvestorsareIndianorforeign,includingqualifiedinstitutionalbuyerssuchaspublicfinancialinstitutions, scheduled commercial banks, mutualfunds,foreigninstitutionalinvestors,multilateralandbilateral development financial institutions, venturecapitalfunds,foreignventurecapitalinvestors,stateindustrial development corporations, insurancecompanies, pension funds and provident funds),whetherbywayofapublicofferingorbywayofaprivateplacementandwhetherbywayofcirculationof an offering circular or placement document orotherwise, securities including Equity Shares and/or instruments or securities convertible into equityshares of theCompany such asGlobalDepositoryReceiptsand/orAmericanDepositoryReceiptsand/or convertible preference shares and/or convertibledebenturesorbonds(compulsorilyand/oroptionally,fully and / or partly), and/or non-convertibledebentures with warrants and/or securities with orwithoutdetachable /non-detachablewarrantsand /orwarrantswitha rightexercisableby thewarrant-holdertosubscribeforequitysharesand/orForeignCurrency Convertible Bonds (FCCBs) convertibleintoequity sharesat theoptionof theCompanyortheholder(s)thereof,up to an aggregate principal amount of ` 250,00,00,000 (Rupees Two Hundred Fifty Crores)oritsequivalentinanyothercurrency,(hereinafter referred to as “Securities”) to bedenominatedinforeigncurrencyorIndianrupees,asthecasemaybe,which,attheoptionoftheCompanyortheholdersoftheSecuritiesmaybesurrenderedfor the purpose of cancellation against receipt ofcorrespondingnumberofunderlyingequitysharesoftheCompany,as thecasemaybe,andsuch issueandallotmenttobemadeinoneormoretrancheortranchesatsuchprice(premium/discount)asmaybedetermined in accordance with relevant guidelines,on such terms and conditions as may be decidedanddeemedappropriatebytheBoardatthetimeofissueorallotment,consideringtheprevailingmarketconditionsandotherrelevantfactors.”

“RESOLVEDFURTHERTHATwithout prejudice tothegeneralityoftheaboveandsubjecttoallapplicablelaws,theaforesaid issueofSecuritiesmayhavealloranytermsorcombinationoftermsasareprovidedin issue of securities of such nature internationallyincludingtermsrelatingtosurrenderoftheSecuritiesforthepurposesofcancellationagainstreceiptofthecorrespondingnumberofunderlyingequitysharesandtheCompanybeandisherebyauthorizedtoenterintoand execute all such arrangements/agreements asthecasemaybewithanyleadmanagers,managers,underwriters, advisors, guarantors, depositories,

custodiansandallsuchagenciesasmaybeinvolvedor concerned in suchofferingsofSecuritiesand toremunerate all such agencies including the payment ofcommissions,brokerage,feesorthelike,andalsotoseekthelistingofsuchSecuritiesinoneormorestockexchangesoutsideIndiaandthelistingofequitySharesunderlyingtheSecuritiesinoneormorestockexchangesinIndia.”

“RESOLVEDFURTHERTHATintheeventofissueofSecuritiesbywayofGlobalDepositoryReceiptsand / or American Depository Receipts or FCCB,the relevant date on the basis of which price ofthe resultant Equity shares shall be determined asspecified under applicable laws or regulations oftheAppropriateAuthorities,shallbe thedateof themeeting in which the Board or the Committee ofDirectors duly authorized by the Board decides toopentheproposedissueofsuchSecurities.”

“RESOLVED FURTHER THAT in the event ofissueofSecuritiesbywayofaqualifiedinstitutionalplacement:(i) therelevantdateonthebasisofwhichpriceofthe

resultantsharesshallbedeterminedasspecifiedunder applicable law, shall be the date of themeeting inwhich theBoardor thecommitteeofdirectorsdulyauthorizedbytheBoarddecidestoopentheproposedissueofSecurities;

(ii) theallotmentofSecurities shall be completedwithin12monthsfromthedateofthisresolutionapprovingtheproposedissueorsuchothertimeasmaybeallowedbytheSEBIGuidelinesfromtime to time; and

(iii) theSecuritiesshallnotbeeligibletobesoldforaperiodofoneyearfromthedateofallotment,except on a recognized stock exchange, orexceptasmaybepermittedfromtimetotimebytheSEBIGuidelines.”

“RESOLVEDFURTHERTHAT,suchofSharewarrantsorFCCBsasarenotsubscribed,maybedisposedoffbytheBoardinitsabsolutediscretioninsuchamanner,astheBoardmaydeemfitandaspermissiblebylaw.”“RESOLVED FURTHER THAT the Board be and ishereby authorised to finalise and approve the offeringcircular/placementdocumentfortheproposedissueoftheSecuritiesand toauthoriseanydirectorordirectorsof the Company or any other officer or officers of theCompanytosigntheabovedocumentsforandonbehalfof the Company together with the authority to amend,varyormodifythesameassuchauthorisedpersonsmayconsider necessary, desirable or expedient and for thepurpose aforesaid to give such declarations, affidavits,certificates, consents and/or authorities as may, in theopinionofsuchauthorisedperson,berequiredfromtimetotime,andtoarrangeforthesubmissionoftheofferingcircular/placementdocument,andanyamendmentsandsupplementsthereto,withanyapplicablestockexchanges(whetherinIndiaorabroad),governmentandregulatoryauthorities,institutionsorbodies,asmayberequired.”“RESOLVED FURTHER THAT the Securities issuedin foreignmarketsshallbe treated tohavebeen issued

6|30thAnnualReport2013-14


abroadand/orintheinternationalmarketand/orattheplaceofissueoftheSecuritiesintheinternationalmarketandmaybegovernedbyapplicableforeignlaws.”“RESOLVED FURTHER THAT the Board be and isherebyauthorisedtoissueandallotsuchnumberofequitysharesasmayberequiredtobe issuedandallottedforthe issueof theSecurities referredaboveorasmaybenecessaryinaccordancewiththetermsoftheoffering,allsuchequitysharesbeingparipassuwiththethenexistingequitysharesoftheCompanyinallrespects.”“RESOLVED FURTHER THAT the Board be and isherebyauthorisedtodosuchacts,deedsandthingsastheBoard in itsabsolutediscretiondeemsnecessaryordesirable in connectionwith the issue of the Securitiesandtogiveeffecttotheseresolutions,including,withoutlimitation,thefollowing:(i) sign, execute and issue all documents necessary

in connection with the issue of the Securities,including listing applications to stock exchanges(whetherinIndiaorabroad)andvariousagreements,undertakings,deeds,declarations;

(ii) seeking, if required, the consent of theCompany’slenders,partieswithwhomtheCompanyhasenteredinto various commercial and other agreements, allconcernedgovernmentandregulatoryauthorities inIndia or outside India, and any other consents thatmay be required in connection with the issue andallotmentoftheSecurities;

(iii)giving or authorising the giving, by concerned persons,ofsuchdeclarations,affidavits,certificates,consentsandauthoritiesasmayberequiredfromtimetotime;and

(iv)settlinganyquestions,difficultiesordoubtsthatmayariseinregardtoanysuchissueorallotmentofSecuritiesasitmayinitsabsolutediscretiondeemfit;and

(v) enter into and execute arrangements / agreementswith Lead Managers / Underwriters / Guarantors /Depository(ies)/Custodians/Payment&CollectionAgents/ Advisors / Banks / Trustees/ MerchantBankers/PractisingCharteredAccountant/PractisingCostAccountant/PractisingCompanySecretaryandallsuchagenciesasmaybeinvolvedorconcernedand to remunerate all such Lead Managers,Underwriters, and all other Advisors and Agenciesby way of commission, brokerage, fees, expensesincurred in relation to the issueofEquitySharesorFCCBsandotherexpenses,ifanyorthelike.”

“RESOLVEDFURTHERTHATtheBoardbeandisherebyauthorized to delegate all or any of the powers hereinconferred toanyCommitteeofDirectorsorDirectorsoranyotherofficerorofficersoftheCompanytogiveeffecttotheseresolutions.” ByorderoftheBoard

Place:NOIDA,U.P. Lalit Kumar SharmaDate :04.08.2014 Company Secretary

NOTES:1. Amemberentitledtoattendandvoteatthemeeting

isentitled toappointoneormoreproxies toattendandvote insteadofhimself/herself.TheproxyneednotbeamemberoftheCompany.Proxies,inorder

tobeeffective,mustbereceivedbytheCompanynotlessthan48hoursbeforethemeeting.

A person can act as proxy on behalf of membersnotexceedingfiftyandholdingintheaggregatenotmorethantenpercentofthetotalsharecapitalofthecompany carrying voting rights. A member holdingmorethantenpercent,ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonorshareholder.

2. The Register of Members and Share Transferbooksof theCompanywill remainclosed from10th September2014to20thSeptember2014(bothdaysinclusive). The names of the shareholders, whoseshare transfer request received in order, either atthe Head office/Registered office of the Companyor at theRegistrars&ShareTransferAgents,M/s.MCS Limited, F-65, Okhla Industrial Area Phase-I,NewDelhi110020,beforethebookclosure,shallbeincluded in themembers registerason thedateoftheAnnualGeneralMeeting.

3. If the final dividendofRe. 1/- per equity share, asrecommended by the Directors, is declared at themeeting,thepaymentofsuchdividendwillbemadeto those members of the Company whose nameappearsontheRegisterofMembersoftheCompanyas on the date of the Annual General Meeting. Inrespectofsharesheldinelectronicform,thedividendwillbepayableonthebasisofbeneficialownershipas per details furnished by National SecuritiesDepository Limited (NSDL) andCentral DepositoryServices(India)Limited(CDSL)forthispurpose.

4. In order to provide protection against fraudulentencashment of Dividend warrant(s), shareholdersholding shares in physical form are requested tointimate the Company under the signature of thesole/first joint holder, the following information beprintedonthedividendwarrant(s).i) Name of the sole/first joint holder and Folio

Number.ii) ParticularsofBankAccountviz.,NameofBank,

Branch address with pin code, Bank AccountNumber with Account type whether saving orcurrentaccount.

5. Members holding shares in Electronic form maykindlynotethattheirbankdetailsasfurnishedbytherespectivedepositoriestotheCompanywillbeprintedon their dividendwarrant(s), and that theCompanywillnotentertainanydirectrequestfromsuchmemberfor deletion of/change in such bank details. Furtherinstructions,ifany,alreadygivenbytheminrespectofsharesheldinphysicalformwillnotbeautomaticallyapplicable to dividend paid on shares in electronicform. Members may, therefore, give instructionsregardingbankaccountinwhichtheywishtoreceivedividend,directlytotheirdepositoryparticipants.

6. Pursuant to theprovisionsofSection205A (5)of theCompanies Act, 1956, dividend for the financial yearended 31st March, 2007, which remain unclaimed/unpaid for a period of 7 years from the date such



dividend first become due for payment, will betransferred on or before 29th September, 2014 to theInvestors Education and Protection Fund establishedbytheCentralGovernment.PursuanttotheprovisionsofInvestorEducationandProtectionFund(Uploadingofinformationregardingunpaidandunclaimedamountslyingwithcompanies)Rules,2012, theCompanyhasuploadedthedetailsofunpaidandunclaimedamountslyingwiththeCompanyonthewebsiteoftheCompany(www.indiaglycols.com).Ithasbeennoticedthatsomeshareholdershavenotencashedthedividendwarrant(s)so far for financial year ended 31st March, 2007 orany subsequent financial years. Such shareholdersare requested tomake theirclaim to theCompany inrespectoftheirunclaimed/unpaiddividend,beforebeingtransferredtoInvestorsEducationandProtectionFund

asaforesaid.TheShareholdersarerequestedtonotethatnoclaimshalllieagainsttheCompanyinrespectofsaidunclaimedandunpaiddividend,iftransferredtotheInvestorsEducationandProtectionFundonduedates.

7. Votingthroughelectronicmeans.I. IncompliancewithprovisionsofSection108of

the Companies Act, 2013 and Rule 20 of theCompanies (Management and Administration)Rules,2014,theCompanyispleasedtoprovidemembersfacilitytoexercisetheirrighttovoteattheAnnualGeneralMeeting(AGM)byelectronicmeans and the business may be transactedthroughe-VotingServicesprovidedbyNationalSecuritiesDepositoryLimited(NSDL):

Theinstructionsfore-votingareasunder:

A.IncaseaMemberreceivesanemailfromNSDL[formemberswhoseemailIDsareregisteredwiththeCompany/DepositoryParticipant(s)]:(1) OpenemailandopenPDFfileviz;“IGLe-Voting.pdf”withyourClientIDorFolioNo.aspassword.The

saidPDFfilecontainsyouruserIDandpassword/PINfore-voting.Pleasenotethatthepasswordisaninitialpassword.

(2) Launchinternetbrowserbytypingthefollowing–URL:https://www.evoting.nsdl.com/(3) Clickon“Shareholder–Login”(4) PutuserIDandpasswordasinitialpassword/PINnotedinstep(i)above.ClickLogin.(5) Passwordchangemenuappears.Changethepassword/PINwithnewpasswordofyourchoicewithminimum

8digits/charactersorcombinationthereof.Notenewpassword.Itisstronglyrecommendednottoshareyourpasswordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.

(6) Homepageof“e-voting”opens.Clickone-Voting:ActiveVotingCycles.(7) Select“EVEN”ofIndiaGlycolsLimited.(8) Nowyouarereadyfore-votingas“CastVote”pageopens.(9) Castyourvotebyselectingappropriateoptionandclickon“Submit”andalso“Confirm”whenprompted.

Uponconfirmation,themessage“Votecastsuccessfully”willbedisplayed.Onceyouhavevotedontheresolution,youwillnotbeallowedtochange/modifyyourvote.Institutionalshareholders (i.e.other than individuals,HUF,NRIetc.)are required tosendscannedcopy (PDF/JPGFormat)oftherelevantBoardResolution/Authorityletteretc.togetherwithattestedspecimensignatureofthedulyauthorizedsignatory(ies)whoareauthorizedtovote,[email protected](emailaddressofScrutinizer)[email protected]

B.IncaseaMemberreceivesphysicalcopyoftheNoticeofAGM[formemberswhoseemailIDsarenotregisteredwiththeCompany/DepositoryParticipant(s)orrequestingphysicalcopy]:(i)Initialpasswordisprovidedintheattachedsheetonthe‘Processandmannerfore-voting’.EVEN(EVotingEventNumber) USERID PASSWORD/PIN

(ii)PleasefollowallstepsfromSl.No.(2)toSl.No.(9)above,tocastvote.II. Incaseofanyqueries,youmayrefertheFrequentlyAskedQuestions(FAQs)forShareholdersande-voting

usermanualforShareholdersavailableattheDownloadssectionofwww.evoting.nsdl.comIII. IfyouarealreadyregisteredwithNSDLfore-votingthenyoucanuseyourexistinguserIDandpassword/PIN

forcastingyourvote.IV. Youcanalsoupdateyourmobilenumberande-mailidintheuserprofiledetailsofthefoliowhichmaybeused

forsendingfuturecommunication(s).V. Thee-votingperiodcommenceson10thSeptember,2014(9:00a.m)andendson12thSeptember2014

(6:00p.m).During thisperiod shareholders’ of theCompany,holding shareseither inphysical formor indematerialized form, as on the cut-off date of 8th August, 2014, may cast their vote electronically. Thee-votingmoduleshallbedisabledbyNSDLforvotingthereafter.Oncethevoteonaresolutioniscastbytheshareholder,theshareholdershallnotbeallowedtochangeitsubsequently.



VI. The voting rights of shareholders shall be inproportion to their sharesof thepaid-upequitysharecapitalof theCompanyason thecut-offdateof8thAugust,2014.

8. MEMBERS ARE REQUESTED TO:A.Immediately notify any change of address or

bankmandatesandtheirPANtotheirdepositoryparticipants (DPs) in respect of their holding inElectronicFormandtotheCompanyinrespectoftheirholdinginphysicalform.

B.Sendtheirqueries,ifany,atleast15daysinadvanceofthemeetingattheCompany’sHeadOfficeatPlotNo. 2-B, Sector-126, Distt. Gautam Budh Nagar,Noida-201304,UttarPradeshsothattheinformationcanbemadeavailableatthemeeting.

C.Filltheattendanceslipforattendingthemeetingand those who hold the shares in dematerialised formarerequestedtobringtheirClientIDandDPIDnumbers foreasy identificationofattendanceatthemeeting.

D.Send their shares for dematerialisation to theCompany’s Registrars and Share TransferAgents, if so far, are not held in dematerialisedform,astheCompanycomesundercompulsorydematasperdirectiveissuedbytheSEBI.

E.Relevant documents referred to in theaccompanyingNoticeandtheStatementareopenforinspectionbythemembersattheRegisteredOfficeoftheCompanyonallworkingdays,exceptSaturdays,duringbusinesshoursuptothedateoftheMeeting.

F.Non resident Indian members are requested toimmediatelyinformtheMCSLimited,RegistrarandShareTransferAgent,ofchangeintheirresidentialaddressonreturntoIndiaforpermanentsettlementandtheparticularsoftheirbankaccountmaintainedinIndiawithcompletename,branch,accounttype,accountnumberandaddressof thebankwithpincodenumber,ifnotfurnishedearlier.

G.TheMinistryofCorporateAffairs (‘Ministry’)hastakena“GreenInitiativeinCorporateGovernance”byallowingpaperlesscompliancesbycompaniesthroughelectronicmode.Inaccordancewiththecirculars bearing no. 17/2011 dated 21.04.2011and 18/2011 dated 29.04.2011 and the statuteissuedbytheMinistry,companiescannowsendvarious notices /documents (including AnnualReport and other communications) to their shareholders through electronic mode to the registerede-mailaddressesoftheshareholders.

We, therefore invite you to please update andregister,ifnotsoregistered,youre-mailaddresseswithyourDepositoryParticipant(s).

Youarerequestedtosendane-mailtocompliance.officer@indiaglycols.com and admin@mcsdel.

com or send a letter at the following addressregisteringyouremailwiththeCompany:

MCS Limited or India Glycols Limited F-65,IstFloor, PlotNo2B,Sector126, OkhlaIndustrialArea, Noida-201304 Phase-I, Dist.GautamBudh NewDelhi-110020 Nagar(UP)

9. ShriU.S.Bhartia,Directordue to retireby rotationand is eligible for reappointment at this AnnualGeneralMeeting.BriefresumeofShriU.S.Bhartiaisasunder:

Name ShriU.S.BhartiaAge 60Qualifications B.Com.(Hons.)ExpertiseinSpecificfunctionalArea

ShriU.S.Bhartiaisanindustri-alistandhasoverall35yearsofexperienceinmanagingvarioustypes of Industries. Shri U.S.Bhartia is associated with In-diaGlycolsLimited for over17yearsasManagingDirectorandinvolvedinthedaytodaymana-gerialactivitiesoftheCompany.

Date of appoint-mentontheBoardoftheCompany

30.11.1996

Name(s) of theother companies in which Director-ships held (as per Sections 165 ofthe CompaniesAct,2013)

1.IndiaGlycolsLimited2.HindustanWiresLimited3.KashipurHoldingsLimited4.IGLFinanceLimited5. Polylink Polymers (India)Limited

Name(s) ofCompanies inwhich Committeemembership (s)/Chairmanship(s)held (as per Clause 49 of theListing Agreement with the StockExchanges)

India Glycols Limited –Stakeholders RelationshipCommitteeandCorporateSocialResponsibilityCommitteeHindustan Wires Limited –AuditCommitteePolylink Polymers (India)Limited-AuditCommitteeandStakeholders RelationshipCommittee

Shareholdingason31.03.2014

448722

10. AsstipulatedintheClause49oftheListingAgreement,NoDirectorisinter-serelatedtoanyotherDirectorontheBoard,exceptShriU.S.BhartiaandSmt.JayshreeBhartia,whoarerelatedtoeachotherasSpouse.

11. Explanatory statement pursuant to section 102(1)oftheCompaniesAct,2013withrespecttoitemsofSpecialBusinessisappendedhereto,andformspartofthisNotice.



ITEM NO.5The Board of Directors at its meeting held on 22nd May,2014 on the recommendation of the NominationandRemunerationCommitteeof theBoardofDirectorsat its meeting held on 22ndMay, 2014, has revised theremunerationofShriU.S.Bhartia,ChairmanandManagingDirectorasapprovedatthetimeofhisappointmentw.e.f.1st April, 2011 vide shareholders’ resolution dated 27th September, 2011 approving the appointment of Shri U.S.BhartiaasManagingDirectorfortheperiodof5years,as per the details mentioned in the resolution set out at itemno.5ofthenotice.Duetoglobalrecessionandmeltdownandsteepfallindemandaswellaspricesofitsfinalproducts,theCompanyhassufferedlossesandtherefore,unabletopaytheshareholders’approvedremunerationtotheChairmanandManagingDirector,henceitisproposedto seek the members’ approval for the remunerationpayabletoShriU.S.BhartiaasChairmanandManagingDirector,intermsoftheapplicableprovisionsoftheAct.The revised remuneration shall bepayable for aperiodnotexceeding2yearsw.e.f.1stApril,2014.INFORMATION REQUIRED PURSUANT TO THE PROVISIONS OF SCHEDULE V TO THE COMPANIES ACT, 2013 READ WITH CLAUSE 49 OF THE LISTING AGREEMENT IS FURNISHED AS UNDER:I. GENERAL INFORMATION:(i) Nature of Industry IndiaGlycolsLimitedisengagedinthemanufacturing

and marketing of Chemicals including specialtyChemicals, Ethyl Alcohol (Potable), Nutraceuticalandherbalextraction,NaturalGum&itsderivatives,IndustrialGases,etc.havingaturnoverofmorethan` 3000crores.ThecompanyhastheadvantageofproducingChemicalsthroughagroroute(greenroute)while the other manufacturers are manufacturingthrough Petroleum. The Company has diversifiedfromasingleproducttomulti-productinashortspanoflast14yearsperiod.TheCompanyhasdiversifieditsactivities fromMEGandEOderivatives tootherspecialtychemicals,EthylAlcohol(potable),NaturalGumsanditsderivatives,neutraceuticalsandHerbalextractions and Industrial Gases. The CompanythroughitssubsidiarySSAIL,hasasugarplantanddistillery in Saharanpur. In a step forward towardsregistering its international presence, theCompanyhasestablishedanoverseascompanyinSingaporetomarketitsproductsintosouth-eastAsianMarkets.

India Glycols Limited is a growing industry in the currenteconomicscenarioduetoinevitabledemandof Pharmaceutical & Nutraceutical industries, Foodindustries,Textileindustry,Automobileindustry,andPotable segment. India Glycols Limited is leadingmanufacturer of Chemicals including Mono EthylGlycols (MEG), Ethoxylates and Glycols EthersthroughMolasses route,which ismost appreciableduetoeco-friendlynatureinalloverworld.

(ii) Date or expected date of commencement of commercial production

1stJanuary,1990.(iii) In case of new companies, expected date of

commencement of activities as per project approved by financial institutions appearing in the prospectus.

NotApplicable(iv) Financial Performance based on given indicators Therelevantfinancialfigures(Audited)forthelast5

yearsareasunder:- (Amount in ` crores)

Particulars 2009-10

2010-11

2011-12

2012-13

2013-14

Total Turnoverincluding other income

1412 1860 2633 3347 2913

Profit /(loss) beforeDepreciat ionandTax.

74 105 234 247 104

Depreciat ionand exception-alitem.

43 69 78 82 274

Profit / (loss)beforeTax

31 37 157 165 (169)

Provision forTax

11 11 52 44 (50)

Profit / (loss)afterTax

20 26 105 121 (119)

(v) Foreign Investments or collaborators, if any: NotApplicableII. INFORMATION ABOUT THE APPOINTEE:(a) Background Details Shri U.S. Bhartia is having overall 35 years of

experienceofmanagingvarioustypesofIndustries.Shri U.S. Bhartia is associated with India GlycolsLimitedforover17yearsasManagingDirectorandinvolved in the day to day managerial activities oftheCompany.Asisevidentfromhisexperienceandindustrialistbackground,ShriU.S.Bhartia is ideallysuited to thenature of our Industry, thebenefits ofwhich,theCompanyhasreapedovertheyears.

(b) Past Remuneration DuringtheYear2013-14,ShriU.S.Bhartiawaspaid

Salary,perquisiteandallowanceof` 2.67Crores.(c) Recognition or Awards Heisrenownedpersonalityinthechemicalindustries

and had immensely contributed to the nation indevelopingandintroducingqualitychemicalincludingMEGandotherspeciality chemicals,EthylAlcohols,NaturalGumsetc.ShriU.S.BhartiawasalsoconferredasBusinessLeaderoftheYearfortheyear2013.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013



(d) Job Profile and his Suitability As stated above, Shri U.S. Bhartia is a commerce

graduatewithover35yearsofexperienceofmanagingvarioustypesofIndustriesandisvestedwithsubstantialpowers of management of the Company. Shri U.S.Bhartia is associated with India Glycols Limited forover17yearsasManagingDirectorand involved inthedaytodaymanagerialactivitiesoftheCompany.As is evident from his experience and industrialistbackground, Shri U.S. Bhartia is ideally suited tothenatureofour Industry, thebenefitsofwhich, theCompanyhasreapedovertheyears.

Under theable leadershipofShriU.S.Bhartia, theCompany has grown from single product of MonoEthylene Glycols at single plant at Kashipur tomultiproducts includingEOD,GlycolsEthers,EthylAlcohol (Potable), Natural Gums, Industrial Gases,NutraceuticalsHerbalExtraction,Sugaretc. at fourdifferent plant locations including Sugar plant atSaharanpur, Uttar Pradesh. The plant capacity ofMEGandequivalenthasbeenincreasedfrom60MTperdayintheyear1996topresently575MTperday.TheCompany’sturn-overhassincebeenincreasedfrom`122croresintheyear1996to` 2913croresintheyear2013-14.

The Company is exporting its products in variouscountries around the globe and the Company hasregistered exports turnover of `1195 crores in theyear2014.TheFixedAssetsbasehasbeenincreasedfrom`156croresintheyear1996to` 1729croresintheyear2014.

Under the diversification plan initiated byShri U.S.Bhartia,theCompanyhasalsosetupEthlyAlcoholDivisionatitsdistilleriesinKashipurandGorakhpurwith an overall capacity of 725 KL per day and isamongfewCompaniesinthecountryhavinglicenseof operations in and sale of Country Liquor andIndianMadeForeignLiquor (IMFL) in twostatesofUttarPradeshandUttarakhand.TheturnoverofEthylAlcoholDivisionhas increased from` 67Crores intheyear2006to` 657croresintheyear2014.

TheCompany has also set up an IndustrialGasesdivisionproducingOxygen,NitrogenandArgonwithanoverall capacityof13000NM3/h.TheCompanyhas also set up Carbon dioxide producing plant atKashipurwithacapacityof160MT/day.

The Company has also modified its existing GuarGumPlanttoproducevalueaddedderivativesforOilFieldIndustry,specialtyderivativesforfood&paperindustryandTextileIndustry.

As a further step towards diversification planinitiatedbyShriU.S.Bhartia,Companyhassetupa 100% Export Oriented undertaking (100% EOU)by the nameofEnnatureBio-pharma division. TheCompany has taken 47 acres land on lease fromUttarakhand government, where it is growing awide variety ofmedicinal plants etc. TheCompanyhas also set up a Supercritical Fluid Extractionfacility (SCFE) at Dehradun, which will be cGMPcompliance. The unit will be used for extraction of

Dietary Food supplements, Natural Colors, Healthcarefruits&vegetables,HerbalExtracts,Fruitflavors&fragrances&Spiceflavors&extracts.Futurethrustistobecomesupplierofmorerefinednaturalactivepharmaceutical ingredients(API)& intermediates topharmaceutical & natural health product industries.Alltheseareveryhighvalueaddedproducts.

All the four plants of the Company are beingcontrolledfromtheheadofficeatNOIDA,U.P.underthe supervision, guidance and direction of Shri U.S. Bhartia, who takes keen interest in various on-going projects conception, planning and executionandhasbeenguidingtheactivitiesoftheCompanyall through.Since various projects of theComapnyareintheadvancedstageofcompletion,ShriU.S.Bhartia’sguidanceanddirectionwouldcontinuetobeofgreatassetandadvantagetotheCompany.

TheworkprofileofShriU.S.Bhartiahas increaseda lotdue to thecapacity increase,establishmentofnew plants at different locations, diversification ofactivitiesintonewareasofoperationsetc.

DuringtheYear2013-14,ShriU.S.BhartiawaspaidSalary,perquisiteandCommissionof` 267.03lacsasapprovedbyCentralGovernmentvideitsapprovaldated24.10.2011.

Since during the year 2013-14 Company sufferedloss,therefore,pursuanttotheprovisionsofsection197 read with Schedule V of the Companies Act,2013, annual remuneration is restricted to the limitspecifiedunderScheduleVof theAct,which isnotadequatecompensationkeepinginviewhispresentandfutureresponsibilities,hispreviousremunerationpaid, industry norms and his role in placing theCompanyinpre-eminentpositionintheIndustry.

In view of the above, it was decided by the BoardofDirectorsof theCompanypendingShareholder’sapproval, to approve the remuneration payable toShri U.S. Bhartia at reasonable level in line withthe remuneration levels in the Industry, across thecountryandbefitshisposition.

TheremunerationapprovedbytheBoardofDirectorsisbasedon theprevalent levelsof remuneration inmanufacturingindustries,ingeneralandtheindustryinparticular.

(e) Remuneration Proposed As mentioned in the Resolution proposed at Item

No.5oftheNotice.(f) Comparative remuneration Profile with respect

to industry, size of the Company, profile of the position and person

Theprevalentlevelsofremunerationinmanufacturingindustries, in general and the industry in particularare higher. Taking into account the turnover of theCompanyandresponsibilitiesofShriU.S.Bhartia,theproposedremunerationtotheappointeeisreasonableandinlinewiththeremunerationlevelsintheIndustry,acrossthecountryandbefitshisposition.

(g) Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial



personnel, if any. Shri U.S. Bhartia is one of the Promoters of the

Company and has been instrumental in bringingsignificantgrowthinthevolumeofitsbusinesssinceinception.HeisalsorelatedtoMrs.JayshreeBhartia,who is a director in the Company and belongs toPromotergroupoftheCompany.

II. OTHER INFORMATION:DuringtheyearunderreviewperformanceoftheCompanyhas been adversely affected on account of depressedglobaleconomicsituationwhichhasresultedinreductionofcommoditydemand.TheperformanceoftheCompanyhas been adversely affected due to realized loss onforeignexchangefluctuationsandsteepfall inGuargumprices. The performancewas further adversely affectedas domestic prices of our feedstock viz. molasses andalcoholwashighonaccountofpooravailabilityofsugarcaneanddiversionofalcoholtowardstheimplementationof Ethanol Blending with Petrol (EBP) Program ofGovernmentofIndia.Thecurrentyearhasbeenanextraordinaryandabnormalyearforthecompanyduetosteepfall in commodity demand, its prices internationally andforeignexchangelosses.In terms of Section 149 of the Companies Act, 2013and Clause 49 of the Listing Agreement on CorporateGovernance, Shri U. S. Bhartia is qualified as non-IndependentDirector.The above may be treated as an abstract and writtenmemorandum setting out the variation of the terms ofcontractofappointmentofShriU.S.BhartiaunderSection190oftheCompaniesAct,2013.TherelativesofShriU.S.Bhartiamaybedeemedtobeinterested in the resolution set out at Item no. 5 of theNotice,totheextentoftheirshareholdinginterest,ifany,intheCompany.Except Shri U S Bhartia and Smt. Jayshree Bhartia,none of the other Directors, KeyManagerial Personnelortheirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheproposedresolution.TheBoardofDirectorshasrecommendedtheproposedresolution set out at item No.5 of this Notice for yourapprovalbywayofaSpecialResolution.

ITEM NO. 6As per Section 197 of the Companies Act, 2013, theNon-Executive Directors of the Company may receiveremuneration byway of commission every year in suchmannerasmaybedecidedbytheBoard,notexceeding1%perannumofthenetprofitsoftheCompanyandsuchpaymentshallbemadeoutoftheprofitsoftheCompany.Keeping in view the enhanced responsibilities of theBoardofDirectors,theBoardofDirectorsat itsmeetingheld on 22nd May, 2014 on the recommendation of theNominationandRemunerationCommitteeatitsmeetingheld on 22ndMay,2014,hasrecommendedthepaymentofremunerationbywayofannualcommissionsuchsum,not exceeding 1% per annum of the net profits of theCompany to be paid and distributed amongst theNon-ExecutiveDirectorsof theCompanyandsuchpaymentshallbeinadditiontothesittingfeepayabletothemforattendingmeetingsoftheBoardandCommitteesthereofmadeoutoftheprofitsoftheCompanyforeachyearforaperiodoffiveyearscommencingfrom1stApril,2014.Save and except all the non-executive directors of

the Company and their relatives, to the extent of theirshareholding interest, if any, in the Company, none ofthe other Directors/ Key Managerial Personnel of theCompany/ their relatives are, in anyway, concerned orinterestedfinanciallyorotherwiseintheresolutionsetoutatItemNo.6ofthenotice.TheBoardofDirectorshasrecommendedtheproposedresolution set out at item No.6 of this Notice for yourapprovalbywayofaSpecialResolution.

ITEM NO. 7TheBoard,ontherecommendationoftheAuditCommittee,hasapprovedtheappointmentandpaymentofremunerationofM/sR.J.Goel,CostAuditor,toconducttheauditofthecostrecordsoftheCompanyforthefinancialyearendingMarch31,2015atanauditfeeof` 1.25Lacs.Inaccordancewith theprovisionsofSection148of theActreadwiththeCompanies(AuditandAuditors)Rules,2014,theremunerationpayabletotheCostAuditorshastoberatifiedbytheshareholdersoftheCompany.Accordingly,consentofthemembersissoughtforpassinganOrdinaryResolutionassetoutatItemNo.7oftheNoticefor ratification of the remuneration payable to the CostAuditorsforthefinancialyearendingMarch31,2015.NoneoftheDirectors/KeyManagerialPersonneloftheCompany/ their relativesare, inanyway,concernedorinterested, financially or otherwise, in the resolution setoutatItemNo.7oftheNotice.TheBoardofDirectorshasrecommendedtheproposedresolution set out at item No.7 of this Notice for yourapprovalbywayofanOrdinaryResolution.

ITEM NO. 8TheBoardofDirectorsatitsmeetingheldon22nd May,2014ontherecommendationoftheNominationandRemunerationCommittee at its meeting held on 22nd May, 2014 andsubjecttotheapprovalofshareholders,hadapprovedandrecommendedthepaymentofremunerationtoMs.PragyaBhartia,withintheoveralllimitspecifiedunderSection188oftheCompaniesAct,2013andtheCompanies(MeetingsofBoardanditsPowers)Rules,2014at`2,50,000(TwoLacsFifthThousand),asPresident,BusinessDevelopmentoftheCompany,who is dealingwith theBusinessDevelopmentincludingStrategyPlanningofvariouson-goingprojectsanddaytodayaffairsoftheCompany.Initially, Ms. Pragya Bhartia was responsible for theimplementationofNutra-ceuticalHerbalExtractionprojectat Dehradun. Ms. Pragya Bhartia is MSc. Economicsfor Development, with distinction and was second rankholderfromUniversityofOxford,U.K.Theparticularsofthetransactionpursuanttopara3ofExplanationtoRule15oftheCompanies(MeetingofBoardanditsPowers)Rule,2014areasunder:1.NameoftherelatedParty:Ms.PragyaBhartia2.Nameofthedirectororkeymanagerialpersonnelwhoisrelated:ShriU.S.BhartiaandSmt.JayshreeBhartia.3.Natureofrelationship:RelativeofShriU.S.BhartiaandSmt.JayshreeBhartia.4.Nature,materialterms,monetaryvalueandparticularsofthecontractorarrangement:Asmentionedabove5.Anyotherinformationrelevantorimportantforthememberstotakeadecisionontheproposedresolution:NoneExcept Shri U.S. Bhartia and Smt. Jayshree Bhartia,none of the other Directors, KeyManagerial Personnel



ortheirrelativesare,inanyway,concernedorinterested,financiallyorotherwise,intheproposedresolution.TheBoardofDirectorshasrecommendedtheproposedresolution set out at item No.8 of this Notice for yourapprovalbywayofSpecialResolution.ITEM NOS. 9 TO 13Pursuanttotheprovisionsofsection149oftheCompaniesAct,2013,everylistedpubliccompanyisrequiredtohaveatleastone-thirdofthetotalnumberofdirectorsasindependentdirectors,whoarenotliabletoretirebyrotationandshallholdofficeforaperiodnotexceeding5years.ItisproposedtoappointShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitenderBalakrishnanandasIndependentDirectorsunderSection149oftheActandClause 49 of the ListingAgreement to hold office for aperiodnotexceeding5(five)consecutiveyearswitheffectfromtheconclusionofthisAnnualGeneralMeeting.ShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitenderBalakrishnanarenotdisqualifiedfrombeingappointedasDirectorsintermsofSection164oftheAct.TheCompanyhasalso receiveddeclarations fromShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShri

JitenderBalakrishnan that theymeetwith thecriteriaofindependence as prescribed under sub-section (6) ofSection149oftheAct.Shri Pradip Kumar Khaitan, Shri Ramesh Chandra Misra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitenderBalakrishnanarenotdisqualifiedfrombeingappointedasDirectorsintermsofSection164oftheCompaniesAct,2013andhavegiventheirconsenttoactasdirectors.TheCompanyhasreceivednoticesinwritingfrommembersalongwiththedepositofrequisiteamountunderSection160oftheActproposingthecandidaturesofeachofShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN. Kejriwal, Shri Ravi Jhunjhunwala and Shri JitenderBalakrishnanfortheofficeofDirectorsoftheCompany.TheCompanyhasalso receiveddeclarations fromShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitenderBalakrishnan that theymeetwith thecriteriaofindependence as prescribed under sub-section (6) ofSection149oftheAct.IntheopinionoftheBoard,ShriPradipKumarKhaitan,ShriRamesh Chandra Misra, Shri Jagmohan N. Kejriwal, ShriRavi Jhunjhunwala and Shri Jitender Balakrishnan fulfilltheconditionsforappointmentasIndependentDirectorsasspecifiedintheActandareindependentofthemanagement.

AbriefprofileofShriPradipKumarKhaitan,ShriRameshChandraMisra,isprovidedbelow:Name ShriPradipKumarKhaitan ShriRameshChandraMisraAge 73 84Qualifications L.L.B. M.A.andL.L.B.ExpertiseinSpecificfunctionalArea

Shri Pradip Kumar Khaitan, an L.L.B Attorney-at-Law(BellChambersGoldMedalist),iscurrentlythepartner of Messrs. Khaitan & Co, Advocates. Hespecializes in the areas of commercial, corporateandtaxlaw,inadditiontoarbitration,jointventures,merger&acquisition,restructuringandde-mergers.He is thememberof theBarCouncil of India, theBar Council of West Bengal, the IncorporatedLaw Society, Calcutta and the Indian Council ofArbitration,NewDelhi.Healsohasthetrusteeshipofeducationalandcharitableinstitutionstohiscredit

ShriR.C.MisraistheformerChairmanof the Central Board of Excise &CustomsandholdsaMaster’sdegreeinArtsandBachelorofLawdegreefromtheUniversityofDelhi.ShriMisrahasexpertise in Direct & Indirect taxationandCorporateLaws.ShriMisrajoinedIndiaGlycolsLimitedin1988.

Date of appointment ontheBoardoftheCompany

29.11.1996 17.06.1988

Name(s) of the othercompanies in which Directorshipsheld

1.IndiaGlycolsLimited2.CESCLimited3.DalmiaBharatLimited4.DhunseriPetrochem&TeaLimited5.ElectrosteelCastingsLimited6.EmamiLimited7.GraphiteIndiaLimited8.OCLIndiaLimited9.WoodlandsMultispecialityHospitalLimited


Name(s)ofCompaniesin which Committeem e m b e r s h i p ( s ) /Chairmanship(s) held(asperClause49oftheListing Agreement with theStockExchanges)

India Glycols Limited–Audit Committee- Member,NominationandRemunerationCommittee-MemberandCorporateSocialResponsibilityCommittee-Member;Graphite India Limited–Nomination andRemuneration Committee-Chairman, StakeholdersRelationshipCommittee-Member;ElectrosteelCastingsLtd.AuditCommittee-Member,Stakeholders Relationship Committee–Member andCorporateSocialResponsibilityCommittee-MemberDalmiaBharatLimited-AuditCommittee-Member

India Glycols Limited-Chairman-AuditCommittee,Stakehold-ers Relationship Committee, Nomina-tionandRemunerationCommittee,Member–Finance Committee, Com-pensationCommitteeforESOS,ShareTransferCommittee


Nil 500



AbriefprofileofShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitenderBalakrishnanisprovidedbelow:Name ShriJagmohanN.Kejriwal ShriRaviJhunjhunwala ShriJitenderBalakrishnanAge 75 58 65Qualifications M.A.(Eco.) B. Com and MBA from

GenevaBE(Mech.)andPostGraduateinIndustrialManagement

ExpertiseinSpecificfunctionalArea

Shri Jagmohan N. Kejriwal isanindustrialist,whoisalsothefounder promoter ofDynatron(P) Ltd. With over 46 years’experience in managingbusiness enterprises, ShriKejriwal has been associatedwith India Glycols Ltd since 2002 as an Independent Director.

ShriRavi Jhunjhunwala isanIndustrialist,manages`3900croresLNJBhilwaraBusinessGroup. He started his careeras a Management Traineeand having gone through avery well planned groomingin all aspects of BusinessManagement and was laterassigned the reins of HEGLtd.asManagingDirector.Heis also active on number ofNationalManagement forumsandisassociatedwithvariouschambers of commerceincludingCII.

ShriJitenderBalakrishnanisformerDeputy Managing Director of IDBIBank Ltd. and holds Bachelor’sdegree in Mechanical EngineeringfromNationalInstituteofTechnology,Madras University and Masters inBusiness Administration. He hasmore than32yearsofexperience.During his tenure with IDBI BankLtd.,hehasheldvariouspositionsand has obtained experiencein various areas of banking andfinancial services. After holdingthe post of Executive Director ofIDBI Bank in July 2004, he waspromoted as Deputy ManagingDirector of IDBI Limited in 2006.Healsohasrelevantandadequatecapital market experience to be aDesignatedDirectoroftheCompanyontheStockExchange,asrequiredunder the Stock Exchange rulesandregulations.

Date of appoint-mentontheBoardoftheCompany

28.05.1999 26.10.2009 13.08.2010

Name(s) of theother companies in which Directorshipsheld

1.IndiaGlycolsLtd.2.Dynatron(P)Ltd.3.IndusteleServices(P)Ltd.

1. IndiaGlycolsLimited2. BhartiAXAGeneralInsurance CompanyLtd.3. BhorukaPowerCorporationLtd.4. PolyplexCorporationLmited5. SardaEnergy&MineralsLimited6. IL&FS Investement Managers

Ltd.7. BhartiInfratelLtd.8. EssarProjectsIndiaLimited9. BhartiAXALifeInsurance CompanyLimited10.AdityaBirlaFinanceLtd.11.UshaMartinLtd.12.EssarServicesIndiaLtd13. Magus Estates & Hotels Pvt.

Ltd.14.EquinoxRealtyand

InfrastructurePvt.Ltd.

1. IndiaGlycolsLimited2. HEGLtd.3. RSWMLtd.4. MalanaPowerCompanyLtd.5. MaralOverseasLtd.6. IndoCanadian

ConsultancyServicesLtd.7. BSLLtd.8. ADHydroPowerLtd.9. CheslindTextilesLtd.10.BhilwaraEnergyLimited11. BhilwaraGreenEnergyLtd.12.NJCHydroPowerLtd13.J.K.LakshmiCementLtd.14.BMDPvt.Ltd.



Name(s)of Com-panies in which C o m m i t t e emembership(s)/Chairmanship(s)held (as per Clause 49 of theListing Agreement withtheStockEx-changes)

IndiaGlycolsLtd.–Member-AuditCommittee,Stakeholders RelationshipCommittee–Member,MemberShareTransferCommitteeandMemberNominationandRemunerationCommittee

HEGLimited-Shareholders Grievance’/Stakholders RelationshipCommittee-Member,CorporateSocialReponsibilityCommittee-Chairman;BSLLtd-Shareholders’/InvestorsGrivanceCommittee-Member;MalanaPowerCompanyLtdAuditCommittee-Chairman;ADHydroPowerLtdAuditCommittee–Chairman,Remuneration Committee-MemberJ.K.Lakshmi Cement Ltd- AuditCommittee-DirectorandNominationandRemunerationCommittee-Director

Aditya Birla Finance Ltd -RiskCommiitee-Chairman;IL&FSInvestmentManagersLtd.-AuditCommitte-Member;Polyplex Corporation Limited-Remuneration Committee-Member;Magus Estates and Hotels Pvt.Ltd-Remuneration, & AuditCommittee–Member;Bharti Axa Life Inurance Co.Ltd- Chairman-Policy HoldersProtection Committee-MemberwithProfitCommitteeandMember- Nomination and RemunerationCommittee-UshaMartinLtd.-AuditCommittee-Chairman–Bharti Axa General InsuranceCompany Ltd. Member-Nomination and RemunerationCommittee-MemberSarda Energy & Minerals Ltd -Investor Grievance CommitteeMember-CompensationCommittee;BhartiInfratelLtd.-AuditCommittee-Member


Nil Nil Nil

CopyofthedraftlettersforrespectiveappointmentsofShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitender Balakrishnan as Independent Directors settingoutthetermsandconditionsareavailableforinspectionbymembersattheRegisteredOfficeoftheCompany.ShriPradipKumarKhaitan,ShriRameshChandraMisra,ShriJagmohanN.Kejriwal,ShriRaviJhunjhunwalaandShriJitenderBalakrishnanareinterestedintheresolutionssetoutrespectivelyatItemNos.9,10,11,12,and13oftheNoticewithregardtotheirrespectiveappointments.TherelativesofShriPradipKumarKhaitan,ShriRameshChandra Misra, Shri Jagmohan N. Kejriwal, Shri RaviJhunjhunwala and Shri Jitender Balakrishnan maybe deemed to be interested in the resolutions set outrespectively at Item Nos. 9, 10, 11, 12, and 13 of theNotice,totheextentoftheirshareholdinginterest,ifany,intheCompany.Saveandexcepttheabove,noneoftheotherDirectors/KeyManagerialPersonneloftheCompany/theirrelativesare, in any way, concerned or interested, financially orotherwise,intheseresolutions.

TheBoardcommendstheOrdinaryResolutionssetoutatItemNos.9,10,11,12,and13oftheNoticeforapprovalbytheshareholders

ITEM NO. 14The existing Articles of Association of the Company(“AoA”)arebasedontheCompaniesAct,1956andsomeregulationsintheexistingAoAarenolongerinconformitywiththeCompaniesAct,2013(“theAct”).With the coming into force of theAct some regulationsoftheexistingAoAoftheCompanyrequirealterationordeletionsinsomearticles.Article no. 4 (c ) of the unaltered AoA permitted theCompanytoredeemPreferenceShares“attheoptionoftheCompany”. However, Article 4(c) is proposed to beamendedpursuant toSection55of theCompaniesAct2013 which requires a Company to issue PreferenceSharesredeemablewithinaperiodof20yearsfromthe dateoftheirissue.Article 69 of the unaltered AoA stated that 5memberspersonally present will constitute quorum for General



Meetings.However,Article69isproposedtobeamendedpursuanttoSection103oftheCompaniesAct2013whichrequiresaPublicCompanytohaveatleast30memberspersonallypresent if thenumberofmembersason thedate of the meeting exceeds five thousand, being thecasewithIndiaGlycolsLimited.

NoneoftheDirectors/KeyManagerialPersonneloftheCompany / their relatives are, in any way, concernedor interested, financially or otherwise, in the SpecialResolutionsetoutatItemNo.14oftheNotice.

TheBoardcommendstheSpecialResolutionsetoutatItemNo.14oftheNoticeforapprovalbytheshareholders.

ITEM NO. 15

ThegrowthplansoftheCompanyenvisagepromotionofGreentechnologybasedChemicalsandexpansioninotherareasofoperation.Theseprojectswillnecessitateexternalinfusionoffundsatdifferentpointsoftimeinthefuture.

WithaviewtoraiselongtermfinanceaswellasmeetingCompany’s fund requirements for expansion, capitalexpenditureandforotherexpendituresaspermittedunderthe prevailing Guidelines in this regard, the Companyproposes to issue Equity Shares and/or instruments orsecuritiesconvertibleintoequitysharesoftheCompanysuch as Global Depository Receipts and/or AmericanDepositoryReceiptsand/orconvertiblepreferencesharesand/orconvertibledebenturesorbonds(compulsorilyand/oroptionally,fullyand/orpartly),and/ornon-convertibledebentureswithwarrantsand/orsecuritieswithorwithoutdetachable /non-detachablewarrantsand /orwarrantswitharightexercisablebythewarrant-holdertosubscribefor equity shares and /or Foreign Currency ConvertibleBonds (FCCBs) convertible into equity shares at theoptionoftheCompanyortheholder(s)thereof,uptoanaggregateprincipalamountof` 250,00,00,000(RupeesTwoHundredfiftyCrores)or itsequivalent inanyothercurrency on the terms and conditions as stated in the NoticeoftheMeeting.

TheaboveissuewouldbesubjecttotheapprovaloftheGovernmentofIndia(GOI),ReserveBankofIndia(RBI),SecuritiesandExchangeBoardofIndia(SEBI)andotherauthoritiesconcerned,whereverapplicable.

The pricing of the equity shares to be issued pursuantto the resolution to be approved at the Meeting uponexercise of the option of conversion of the FCCBs willbe in accordance with the prescribed guidelines underForeignCurrencyConvertibleBondsandOrdinaryShares(ThroughDepositoryReceiptMechanism)Scheme,1993as amended as also in accordance with the terms ofoffering.

These FCCBs may be listed on Stock Exchange(s),abroad,asmaybedeemedfitbytheBoard.Theequityshares issued and allotted upon exercise of the optionavailable on the FCCBs shall be listed on the StockExchanges in Indiawhere theCompany’ssecuritiesarelisted.

This resolution isproposedasanenabling resolution toauthorizetheBoardofDirectorstoraiselongtermfinanceas well as meeting Company’s fund requirements forexpansion,capitalexpenditureandforotherexpendituresaspermittedundertheprevailingGuidelinesinthisregardmeeting Company’s fund requirements for expansion,capital expenditure and for other expenditures aspermittedunder theprevailingGuidelines in this regard.This resolution also givesadequate flexibility in respectof working out themodalities of issue as also to issueFCCBsinsuchtranches,atsuchtimesastheBoardmayinitsabsolutediscretiondeemfit.

Under Section 41, 42 and 62 of the Companies Act,2013 shareholders approval by a special resolution isrequiredforissueofsharestopersonsotherthanexistingshareholdersoftheCompany.NoneoftheDirectors/KeyManagerial Personnel of the Company / their relativesare, in any way, concerned or interested, financially orotherwise, in theSpecialResolutionsetoutat ItemNo.15oftheNotice.

The resolution set out at ItemNo.15 is proposed to bepassedasaSpecialResolution.

ByorderoftheBoard

Place:NOIDA,U.P. Lalit Kumar SharmaDate :04.08.2014 Company Secretary



To The Members

Directors’Report

YourDirectorsarepleasedtopresenttheThirtiethAnnualReporttogetherwiththeAuditedAccountsoftheCompanyfortheyearended31stMarch,2014.

FINANCIAL RESULTS (Amount in `Croresexceptearningspershare)

Year ended 31.03.2014

Year ended 31.03.2013

SalesandOtherIncome 2914 3347

Profit/(Loss)beforeDepreciation,ExceptionalItemandTax

105 247

ExceptionalItem(Net) 192 0

Depreciation 83 82

ProfitBeforeTax (170) 165

ProvisionForTax (50) 44

NetProfit (120) 121

EarningPerShare(In`) (38.61) 41.10

DIVIDENDYourDirectorsarepleasedtorecommendafinaldividendofRe.1(RupeeOneonly)perequityshare.Theoutgoondividendwillbe`3.62Croresincludingtaxondividend.

PERFORMANCEDuringtheyearunderreviewperformanceoftheCompanyhas been adversely affected on account of depressedglobaleconomicsituationwhichhasresultedinreductionofcommoditydemand.TheperformanceoftheCompanyhas been adversely affected due to loss on account offoreign exchange volatility and steep fall in Guargumprices. The performancewas further adversely affectedas domestic prices of our feedstock viz. molasses andalcohol,washighonaccountofpooravailabilityofalcoholand diversion of alcohol towards the implementationof Ethanol Blending with Petrol (EBP) Program ofGovernmentofIndiaatanunrealisticpriceresultinginasharpincreaseinthepricesofalcohol.Sales and other income for the year under review hasbeen`2914Croresascompared to`3347Crores lastyear.Lossafterdepreciation,exceptionalitemandtaxfortheyearhasbeen` 120Croresascomparedtoprofitof`121Croreslastyear.Thecurrentyearhasbeenanextraordinaryandabnormalyearforthecompanyduetosteepfallinguargumpricesandforeignexchangelosses.

CHEMICALS TheCompanyisthelargestmanufacturerofBio-MEGintheworldmadeoutofrenewablefeedstocki.e.MolassesandEthanol.Bio-MEGhasanapplication,apartfromotherproducts, inPETbottles,whichisusedforpackagingofbeverageproducts.

SalesofGlycols (MEG,DEG,TEGandHeavyGlycols)hasincreasedfrom91,225MTinFY2012-13to95,342MTinFY2013-14andinSalesValuefrom`693CroresinFY2012-13to` 758CroresinFY2013-14.SalesunderEthyleneOxideDerivatives(EOD)businessdecreasedmarginallyto103,713MTinFY2013-14from104,755 MT during previous year. However, in valueterms it has increased from Rs.1005 Crores in 2012-13 to ` 1106Crores inFY2013-14.EODbusinesshaswitnessedimprovementinprofitabilityduetohigherpricesofEthyleneandEthyleneOxideintheworldmarket.During the year, yourCompanyproduced96275MTofGlycolscomparedto91215MTlastyear.EthyleneOxideDerivatives (EODs) production has been 105510 MTcomparedto104157MTlastyear.

EXPORTSDuringtheyearunderreview,yourCompanyhasachievedtotal export turnover of ` 1195 Crores as compared to`1772Croreslastyear.Thesteepdeclineinexportscanbeattributedtothesteepfallinpricesofguargum.YourCompany hopes to achieve reasonable growth in theoverallexportsalesinthecurrentyearthoughthemarketconditions remain extremely challenging. Companyhas been granted Òne Star Export House’ status byGovernmentofIndia.

ETHYL ALCOHOL (POTABLE) & EXTRA NEUTRAL ALCOHOLDuring theyear,yourCompanyregistered totalsalesof` 657Crorescomparedto` 660Croreslastyear intheEthyl Alcohol (Potable) division. During the year thrustwas given on the export of high quality Extra NeutralAlcohol(ENA).Company is having license for operations in and sale ofCountryLiquorandIndianMadeForeignLiquor(IMFL)intheStatesofUttarPradeshandUttarakhand.During theyearunderreview,Companyhaslauncheditspremiumproductsunderthebrandnameof“V2OVodka”inthreeflavorsviz.Orange,GreenAppleandSmooth.WehavealsoextendedthelaunchofBeachHousePremiumXXXRum.Duringtheyear, IMFLbrandsof theCompanyhavebeensupplied toCanteenStoresDepartment(CSD)ofIndianDefenceForces.CompanyisinprocessofintroducingitsIMFLbrandsinthehigher rangemarket and brand building program shall beintroducedinthecurrentfinancialyear.Monde Selection Committee is conducting evaluationsessions for different categories of consumer products& accordingly provides quality awards, our CompanyhaswonfourthtimeinarowGRANDGOLDawardfromMONDESELECTION,BelgiumforitshighqualityofExtraNeutralAlcohol.Company has a tie-up with Bacardi for bottling of itsproductsatitsKashipurbottlingunit.

ENNATURE BIO-PHARMA DIVISION (100% EXPORT ORIENTED UNDERTAKING)Companyhasa100%ExportOrientedUnit(100%EOU)by the nameofEnnatureBio-pharmadivision. Theunit



has established Supercritical Fluid Extraction- CO2and solvent extraction facility at Dehradun. The unit iscGMP,ISO9001,ISO22000,HACCP,KosherandHalalcertified.TheR&DcenteratEnnatureBio-Pharmaplantat Dehradun is working vigorously on the process ofstabilizing and developing various PhytopharmaceuticalandNutraceuticalproductsforthedevelopedmarkets.CompanyduringtheyeardevelopedIndiangrownhealthsupplementsforthedevelopedmarketwithZeroresidualsolvents by SCF-CO2 technology. These products havegivenstupendousboosttothegrowthofthebusinessofBio-Pharma.Duringtheyear,Companyhasbecomeaqualifiedsuppliertomanylargeconglomeratesworldwidefornaturalcolors,nutraceuticals,healthsupplementsandplantbasedActivePharmaceuticalsIngredients(APIs).CompanyhasestablisheditsnameasaqualitymanufacturerandsupplierwithstringentQCandQAcontrolsinplace.Duringtheyear,salesturnoverofEnnatureBio-Pharmadivision has declined to ` 43Crores as compared to ` 62Crores last yeardue tostrategic restructuringof thebusiness relationshipwitha fewkeycustomers.VarietyinProductFolioavailablewiththeCompanyhascreatedbetter business opportunities to deeply penetrate intodomestic as well as international market, which hasencouraged the Company to increase its productioncapacitiesfrom400MTto800MT.Duringtheyearunderreview,yourCompanyhascreatedfour new process patents to hold intellectual propertyrights on products namely; Thiocolchicoside, Marigoldlutein, DHA and Green Ginger Shogaol.We have alsodesignedvarious new formulations, micro-encapsulatedformsfromtheexistingSCF-CO2processinordertohavebetterproductportfolio.Companyisworkingtowardscreatingvalueforitsgenericproductsbybranding,repositioning&generatingtechnicalbackupwiththehelpofprofessionalinstitutes.

INDUSTRIAL GASESTheIndustrialGasesdivisionproducingOxygen,NitrogenandArgonhasanoverallcapacityof13460NM3/h.Duringtheyearunderreview,Companyproducedapproximately13549788NM3ofOxygenand955915NM3ofNitrogen.BothOxygen andNitrogenwere successfullymarketedand also used for own requirement. Industrial gasesdivisionalsoproduced1553591NM3ofArgon.TheIndustrialGasesdivisionhasalsoproducedfoodandindustrialgradeliquidCarbonDi-oxide(CO2)atKashipurPlant having capacities of 160 MT/day each, to meetgrowingdemand in thedomesticmarket.Companyhasproduced48,187MTofCarbonDi-oxide (CO2).Duringthe year Industrial Gases segment registered total sales of` 36.08Cr.compared to` 31.42Cr. in the lastyear.During theyear theCompany for thefirst timeexportedLiquidCarbonDi-oxide(LCO2)worth`4.18Cr.Your Company has its own in house facilities formanufacturing of ETHYLENE OXIDE (EO) and LiquidCarbon-Dioxide(LCO2)at itsKashipurplant,suitable forSterilization of Disposable Surgical & Medical Devices,spicesandpackingsubstanceslikerubberplastic,etc.ItistheonlyplantinNorthernIndiatohavesuchmanufacturingfacility, therefore, we have a distinct edge over other

suppliersinthemarket.DuringtheyeartheCompanyhassold722MTofEO-LCO2ascomparedto600MTinthelastyear.

JOINT VENTURE FOR PRIVATE FREIGHT TERMINAL (PFT)TheCompanyhasterminatedtheJointVentureagreementwithM/sFourceeInfrastructureEquipmentsPvt.Limited(FIEPL) in respect of the JointVenture for setting up aprivatefreightterminalatKashipur,Uttarakhandon23rdJune,2014.TheCompany isexploringvariouspossibilities includingidentifyinganotherpartnerfor thepurposeofsetting-up,operatingandmanagingthesaidPrivateFreightTerminal(PFT) inorder toprovidemulti-modal logistics solutionsto our Company and external customers and enhanceits service delivery capacity. With the commissioningof this facility, logisticsmovement for both inboundandoutboundcargowouldbecomemoredependable,reliableandeconomicalandwouldalsoensureon-timedeliveryofgoodsandenablebetterinventorymanagement.ThetotalinitialequityinvestmentbaseoftheJVCompanywouldbearound` 30Crores,whichwouldbecontributedbyJointVenturePartnersequally.Theestimatedprojectcostwouldbe` 75Crores.Thefacilityisexpectedtobecommissionedbylastquarterofthisfinancialyear.

EXPANSION / MODERNISATION / DIVERSIFICATION PLANSYourCompany isactivelypursuinggrowthopportunitiesandlookingatareastoreduceitscostofproduction.TheCompany is also evaluating plans to further expand itsEthoxylatescapacitytoimproveitsproduct.Our Gorakhpur Unit, has commissioned a 12MWBio-massbasedco-generationplantbasedonMulti-fuel i.e.RiceHusk&ConcentratedSpentWash(Slop)forPowergenerationandsaleofthesurpluspowerhasstartedtothePowerGrid.Thisnewsetupisdesignedtosupplyapprox.8MW per hour Power to the Grid after meeting the in-houserequirements.Withthesuccessfulcommissioningof this Power Project, we will be contributing towardsreductionofthepowerdeficit intheUttarPradeshStateandalsomeetourcommitmentofzeroeffluentdischargefromourdistilleryPlant.TheCompany issettingup10 tonbiomass/daycapacitypilot plant to convert lignocellulosic agricultural wastebiomass to ethanol by using the bench-scale processdeveloped at DBT-ICT Centre for Energy Bio-Sciences,Mumbai. The Pilot Plant will use agricultural non-fodderlignocellulosic waste (i.e. Rice Straw, Wheat Straw &Bagasse)asfeedstocktomanufactureethanol.Theplantwill aimat solving technical roadblocks inLignocellulosicEthanolTechnologyinordertoimprovetheoverallsituationwithregardtoalcoholavailability.Theplantisbeingset-upwiththeDepartmentofBio-Technologyaid/loan.The Company has started manufacturing of specialspirits,maturationandbottlingofhighproofbrands.TheCompanyhasstartedtoproduceBacardibrandsincludingSuperior white rum, flavoured rum in five variants,black rum, Eristoff Vodka in four variants and Bacardiwhisky. The Company is in-process of developing newpremiumrangeWhisky.TheCompany isalsoexploring



opportunities for distribution of its IMFL brands in theNorth-EastandEastern IndiaMarkets.TheCompany isalsointroducingitspremiumrangeRuminCSDofIndianDefenceForces.TheCompany isalsosettingupaguargumbasedPOderivativesplantforoilfieldindustry.

FINANCEDuringtheyearunderreview,CompanyhasraisedTermLoansof` 200Croresandrepaidtotalloansof`189Crores.TheCompanyhasbeenregularinmeetingitsobligationstowards payment of principal/interest to FinancialInstitutions/Banks/FixedDepositholders.

LISTING OF SECURITIESThesharesof theCompanyshallcontinue tobe tradedat theBombayStockExchangeand theNationalStockExchange.

SUBSIDIARY COMPANIESTheCompanyoperatesasugarmanufacturingplantinthestateofUttarPradeshthroughitssubsidiaryCompanyM/sShakumbariSugarandAlliedIndustriesLtd.(SSAIL)withacrushingcapacityof7500tonescrushedperday(TCD)alongwith amodern distillery of 65 KL per day (KLPD)producing high quality rectified spirit and an internalbagassefiredco-generationplantof11MWcatering tothecaptivepowerneedsofthesugaranddistilleryunits.Duringtheyearthesugarplanthasoperatedfor72daysandproduced4939.5MTofWhiteCrystalSugar.Duringtheyearthedistilleryhasmanufactured74.65lacsKLofrectifiedspirit.ThenetworthofShakumbariSugarandAlliedIndustriesLimited (SSAIL)hasbeencompletelyeroded, therefore,theCompanyhasbeendeclaredasSickCompanyunderthe provisions of section 3(1) (o) of the Sick IndustrialCompanies(SpecialProvision)Act,1985.IDBIBankLtd.beingtheOperatingAgencyhaspreparedandsubmittedtherevivalschemeforSSAIL.IGLFinanceLtd. isa100%subsidiaryof theCompanyIGL(F) had invested funds in short term commodityfinancing contracts by theNational SpotExchange Ltd.(NSEL).EventhoughNSELhasdefaultedinsettlingthecontractsonduedatestheactiontakenbytheGovernmentand other investigating agencies, we are confident ofrecoveryofourduesfromNSELoveraperiodoftime.Companyhasa100%subsidiaryinSingaporetoaugmentitsactivitiesinSouthEasternregion&helpthemarketingofproductsfromChemicalPlant,NaturalGumsPlantandSupercriticalFluidExtractionfacilitytolargebuyersinUS,EuropeandSouthEastAsia.Your Company has three subsidiary companies, i.e.Shakumbari Sugar & Allied Industries Limited (SSAIL),IGLFinanceLimitedandIGLCHEMInternationalPte.Ltd.TheMinistry ofCorporateAffairs,Government of India,videGeneralCirculardated8thFebruary2011and21stFebruary 2011 has granted a general exemption fromcompliancewithSection212oftheCompaniesAct,1956,subjecttofulfillmentofconditionsstipulatedinthecircularfornon-inclusionofSubsidiaryCompanies’AnnualReportwith the Annual Report of the Holding Company. TheCompany has satisfied the conditions stipulated in the

circularandhencehaveavailedtheexemption.NecessaryinformationrelatingtothesubsidiarieshasbeenincludedintheConsolidatedFinancialStatements.The Company undertakes that annual accounts of thesubsidiarycompaniesandtherelateddetailedinformationshallbemadeavailabletoshareholdersoftheCompanyand subsidiary companies seeking such information atanypointoftime.Theannualaccountsofthesubsidiarycompanies shall also be kept for inspection by anyshareholders in the head office of the company and ofthesubsidiarycompaniesconcerned.TheCompanyshallfurnishahardcopyofdetailsofaccountsofsubsidiariestoanyshareholderondemand.In order to broaden the Company’s activities, yourCompanyhasincorporateda100%subsidiaryCompanyin theUnitedStatesofAmericawith themainobjectivefor trading & distribution of Company’s product in theAmerican and Latin American regions and any other relatedactivities.

FIXED DEPOSITDuring the year, yourCompany had neither invited noracceptedanyfixeddepositsfromthepublic.Therearenooverduedeposits except unclaimeddeposits amountingto ` 4.16Lacs.

DIRECTORSDuringtheyearunderreview,theBoardofDirectorsofyourCompanycomprisedofninedirectorsoutofwhichsevenareNon-ExecutiveDirectors,oneManagingDirectorandoneExecutiveDirector.OutofthenineDirectors,duringtheyearunderreview,intermsofthelistingagreement,the Company has five Independent Directors.However,pursuant to the provisions of theCompanies Act 2013,Companyhassix independentDirectorsason1stApril,2014, therefore, Company has to fix the tenure of theIndependentDirectorsforaperiodnotexceeding5years.TheCompanyproposestofixthetermofallindependentDirectors foraperiodnotexceedingfiveyears from1stOctober,2014till30thSeptember,2019.AllIndependentDirectors have affirmed compliance with the criteria ofindependenceasprovidedundersubsection(6)ofSection149oftheCompaniesAct,2013bywayofdeclarationofindependence.ShriAutarKrishna(DIN00031386)hasresignedfromtheBoardofDirectorsasheisnotkeepinggoodhealth.TheBoardofDirectorsatitsmeetingheldon4thAugust2014hasacceptedhisresignationfromtheofficeofDirectorsandBoardCommitteeswitheffectfrom15thJuly,2014.TheBoardofDirectorsplaceonrecordtheirdeepappreciationfor his invaluable professional guidance, considerabletalent,poise,commitmentanddetermination.Duringtheyearunderreview,fourBoardMeetingswereheldon30thMay,2013,9thAugust,2013,11thNovember,2013and12thFebruary,2014.During the year under review, the Shareholders of theCompany at their 29th Annual General Meeting hadreappointed Shri M.K. Rao as Executive Director for aperiodnotexceeding5yearsw.e.f.1stApril,2013.Shri U.S. Bhartia, Non-independent Director of theCompany, retiring by rotation and being eligible, offerhimselfforreappointment.YourDirectorsrecommendthe



reappointmentofShriU.S.Bhartia, theRetiringDirectorforyourapproval.

DIRECTORS’ RESPONSIBILITY STATEMENTPursuant to Section 217(2AA) of the Companies Act,1956,yourDirectorsconfirmthat:- inthepreparationoftheannualaccounts,theapplicable

accounting standardshavebeen followedalongwithproperexplanationrelatingtomaterialdepartures;

- appropriate accounting policies have been selectedand applied consistently and made judgments andestimates that are reasonable and prudent so as togiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearended31stMarch,2013andoftheprofitandlossoftheCompanyforthatperiod;

- proper and sufficient care has been taken for themaintenance of adequate accounting records inaccordance with the provisions of the CompaniesAct,1956forsafeguardingtheassetsoftheCompanyand for preventing and detecting fraud and otherirregularities;

- theannualaccountshavebeenpreparedonagoingconcernbasis.

MANAGEMENT DISCUSSION AND ANALYSISA separate report on Management Discussion andAnalysis isappendedherewith,whichshall formpartofthisDirectors’Report.

CORPORATE GOVERNANCEThe Board of Directors supports the broad principlesof Corporate Governance. The report on CorporateGovernance for the year ended 31st March, 2014 asstipulatedinclause49,ofthelistingagreementwiththestock exchanges andAuditor’sCertificate onCorporateGovernanceareappendedwiththisDirectors’Report.

AUDITORS & AUDIT REPORTTheAuditors,M/s.Lodha&Co.,CharteredAccountants,retiringattheensuingAnnualGeneralMeetingandofferthemselvesforreappointment.TheBoardrecommendedtheappointmentofStatutoryAuditorsfromtheconclusionoftheensuingAnnualGeneralMeetingtilltheconclusionof thenextAnnualGeneralMeeting.M/s.Lodha&Co.,Chartered Accountants, have confirmed that they areeligibleunderSection139oftheCompaniesAct,2013forreappointment.The Auditors in their Audit Report have invited theattentionof theShareholders towardsnon- provisioningbytheCompanyagainsttheinvestmentinitssubsidiaryCompany, Shakumbari Sugar and Allied IndustriesLimited(SSAIL)amountingto` 54.28Crores,loansandadvances amounting to ` 102.11 Crores. The AuditorshavealsoinvitedtheattentionoftheShareholderstowardsCorporate Guarantee extended by the Company onbehalfofSSAILagainstoutstandingamountofFinancialInstitutionsandBanksasstatedinNote27(A)(iii)oftheFinancialStatements.TheCompanyhasalreadyprovidedits clarification as contained in note no.34 (A) of theFinancialStatementsi.e.consideringtheintrinsicvalueoftheinvestmentinShakumbariSugarandAlliedIndustries

Limited,(basedonvaluationreport,futureprojectionsandlongterminnature)anddirectionissuedbytheHon’bleBoardforIndustrialandFinancialReconstruction(BIFR)forpreparationofrevivalschemebytheoperatingagencyas appointed, which has been filed with BIFR on 11thJanuary 2014, no provision at this stage is considerednecessaryby themanagementagainst investmentsandLoans&advancesmade/givenasstatedabove.The Auditors have also invited the attention of theShareholderstowardsnon-provisioningbytheCompanyagainsttotalexposureofamountingto` 148.49Croresinits100%subsidiaryCompanyIGLFinanceLimited.TheCompanyhasalsoprovideditsclarificationascontainedin note no. 34 (B) of the Financial Statements i.e.Companyhastotalexposureof` 148.49crores(includingInvestmentincapitalof` 1.25Crores)inIGLFinanceLtd.(IGLFI). IGLFI inturnhadinvestedfundsforshorttermincommodityfinancingcontractsofferedbyNationalSpotExchangeLtd.(NSEL).NSELhasdefaultedinsettlingthecontractsonduedates.Consideringthepresentstateofaffairs,actiontakenbytheGovt.andotherauthorities,themanagementisconfidentofrecoveryofduesfromNSELoveraperiodoftime.Accordingly,noprovisionhasbeenconsiderednecessaryatthisstagebythecompanyandshownasgoodandfullyrecoverable.

COST AUDITORSCompany has appointed M/s R J Goel & Co., CostAccountants (FRN 000026) as Cost Auditors of theCompany for the financial year 2014-15 under section148oftheCompaniesAct,2013,subjecttotheapprovalof the Shareholders at their ensuing Annual GeneralMeetingandtheCentralGovernment.CostAuditorshaveconfirmedthattheyareeligibleunderSection141(3)ofthe Companies Act, 2013 for reappointment. The CostAuditors have attended the Audit Committee Meeting,wheretheirReportwasdiscussed.Duedate forfilingof theCostAuditorsReport inXBRLmode for the year 2013-14withCentralGovernment is30thSeptember,2014.TheduedateforfilingoftheCostAuditorsReportinXBRLmodefortheyear2012-13withCentralGovernmentwas30thSeptember,2013,however,the Company had filed the same on 28th November,2013.

ENVIRONMENT, ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, ETC.Your Company is working actively on various projectsefficiently, approaching and targeting towards CleanDevelopmentMechanism (CDM) and reduction inGHGemissions.The Company has installed unique technology forconvertingdistilleryspentwashintofuelatboththeplantsviz.KashipurandGorakhpur.Throughthistechnology,thespentwashisconcentratedthroughfiveeffectevaporator.The concentrate is utilized as fuel to substitute coal ina specifically designedboiler. Thehighpressure steamso generated is passed through the turbine for powergenerationandlowpressuresteamafterturbineisutilizedin the plant for operation.Due to this yourCompany issaving fossil fuel in terms of coal and substituting theessential powergeneration throughDGsets.Estimated



savingduetoSloputilizedduringtheyearunderreviewisasunder:SlopEquivalentCoalsavings(netofEvaporator) -32300MTSlopEquivalentPowerunitssavings(netofevaporator) -3255MWThe Biomass based Cogeneration Project activitytaken up by the Company at its Gorakhpur, U.P. plantis successfully registered under Clean DevelopmentMechanism(CDM)projectbyUnitedNationsFrameworkConventiononClimateChange (UNFCCC) for ten yearfixed crediting period 16/12/2010 to 15/12/2020. UndertheCleanDevelopmentMechanism,emission-reduction(or emission removal) projects in developing countriescanearncertifiedemissionreductioncredits.Your Company has received certification of EnergyManagementSystem(ISO50001:2011)underintegratedmanagementsystem.InaccordancewiththeprovisionsofSection217(1)(e)oftheCompaniesAct,1956andtheCompanies(DisclosureofparticularsintheReportofBoardofDirectors)Rules,1988therequiredinformationrelatingto“ConservationofEnergy, Technology Absorption and Foreign Exchangeearningsandoutgo”isannexedheretoandformspartofthisReport.

CORPORATE SOCIAL RESPONSIBILITY (CSR)Good governance demands adherence of socialresponsibilitycoupledwithcreationofvalueinthelargerinterestofthegeneralpublic.YourCompany,Directorsandits dedicated employees continue to contribute towardssociety by several worthwhile causes. Your Companyaims to enhance the quality of life of the community ingeneralandhasastrongsenseofsocialresponsibility.IncompliancetotheCompaniesAct,2013andCompanies(Corporate Social Responsibility Policy) Rules, 2014passed with effect from 1st April, 2014, the Board ofDirectors formed a CSR Committee comprising of ShriU.S.Bhartia,ChairmanandManagingDirector,ShriM.K.Rao, Executive Director, Shri R.C. Misra, IndependentDirectorandShriP.K.Khaitan, IndependentDirectorasthe members of the Committee. The CSR CommitteeformulatedaCSRPolicyandthesameisenforcedwitheffectfromthecurrentfinancialyear.TheCompanyhasalsoplacedtheCSRpolicyonitswebsite.Some of the Corporate Social activities voluntarilyundertaken in and aroundKashipur (Uttarakhand state)duringtheyearunderreviewareasfollows:1 OrganisingVillageMedicalCampandMedicalEye

Campsothatvillagersgetmedicalassistance.2 SponsoringMedicaltreatmentforpeopleinneed.3 Facilitating Wall repair and Whitewashing of

communitybuildings.4 Installedhandpumpsfordrinkingwateratvillages.5 Foggingofpesticideinvillage.

6 DistributionofBlanketstoPoorHomelessfamilies.7 Extended support to the victims of Flood affected

people.8 Distribution ofSchoolUniforms toPoorChildrenat

theVillagesSchools.9 OrganisingNSSCampandBharatSewaMissionfor

villagersevacuationduringflood.10 Providing financial assistance to Hospitals for old

age patients, educational institute for educationsupporttohandicapstudentsandNGOsforpoorgirlsmarriage.

YourCompanyisalsosupportingacommunityschoolatDwarka,NewDelhithroughcharitableorganizationNirmalSocietyforEducationPromotion.Theschoolisequippedwithmodernfacilitiesandalsohasagoodinfrastructure.Theschoolpossessesqualifiedandexperiencedfaculties,whichenablechildrentomakeagreatfuture.The Company lent financial assistance to theunderprivileged children under its CSR activity. YourCompany is also extending educational and on-the-jobtrainingtothestudentsofmanyprofessional Institutionsand the professionals of many other Management andEngineeringInstitutions,whichhelpsthemtostartanewbeginningfortheirfutureprofessionalcareer.AttheendyourCompanyconstantlystriveshardtoservethe society by implementing such other policies whichbenefitedpeopleatlarge.ThecompanyalwaysendeavorstogivebacktheSocietyforthesupporttheCompanyhasreceivedtoriseandflourish.

HUMAN RESOURCESYour Directors wish to place on record their deepappreciationtoemployeesatall levelsfortheirall-roundefforts,dedication,commitmentandloyalserviceswhichhelpedyourCompanysustaineveninatoughyearandachievesatisfactoryperformanceduringtheyear.The required information as perSection 217(2A) of theCompanies Act, 1956 read with Companies (Particularof Employees) Rules, 1975, forms part of this report.However,aspertheprovisionsofSection219(1)(b)(iv)oftheCompaniesAct,1956,thereportandaccountsarebeingsenttoallshareholdersoftheCompanyexcludingtheStatementofparticularsofEmployeesunderSection217(2A) of the Act. Any shareholder interested inobtainingacopyof thesaidstatementmaywrite to theCompanySecretaryatHeadOfficeoftheCompany.

ACKNOWLEDGEMENTYourDirectorsplaceonrecordtheirdeepappreciationofthesupportgivenby theCentralGovernment,StatesofUttarakhandandUttarPradesh,FinancialInstitutionsandBanksandlooksforwardtotheircontinuedsupport.

forandonbehalfoftheBoard

Place:NOIDA,U.P. U.S. BhartiaDated:04.08.2014 Chairman and Managing Director



AnnexuretotheDirectors’Report

Particulars as required under Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors Report for the year ending 31st March 2014.

CONSERVATION OF ENERGY(a) Energy Conservation Measures Taken.

1. Installationof12MWSTGsettosellthesurpluspowertoUPCL.

2. Installation of steam condensate recovery inGuargumunit.

3. Installation of steam condensate recovery inGlycolEtherDryerunit.

4. Provision of VFD in cooling tower fans(Phase-2).

5. Provision of VFD in tempered Water pump ofEthoxylationStirredreactor.

6. Installationofforcedcirculationin4th&5thstageinexistingEvaporatorplantresultinginincreasedcapacity.

7. InstallationofVFDinIDfanofLIPIboilertosavethepower.

8. ProcesssteamcondensateofENAplantisusedasaboilerfeedwaterresultinginDMwaterandenergysaving.

9. ProcesscondensateofEvaporatorplantisusedas a dilution in fermentation resulting in Rawwaterandenergysaving.

10. EffluentEvaporatoronstream factor increasedafterprovisionofcentrifugeDecanters.(GKP)

11. Successfully commissioned the 200ML PetbottlemouldinourPETbottlemachineresultinginreductionofperunitcost.

12. ENA Plant HQ column condensate recoveryresultinginheatconservation.

(b) Additional investment and proposals, if any, being implemented for reduction of consumption of energy:

Followingschemesarebeingimplemented:1. Extractionbackpressuresteamturbineof3.5MW

underimplementation.2. Optimization heat integration of dehydration

steaminT-410/T-2410/T-3410resultinginsteamsavinginstrippers.

3. Proposal for usage of Coal Additive in Boilersresultingincoalsavings.

4. Flash steam recovery from steamBoiler drumswaterblowdown.

5. ReducingtheFOconsumptioninMEGheaterbymaximizingthebiogasinheater.

6. ReplacementoffuelinMEGheaterfromFurnaceOiltoNaturalgas.

7. Installation of Reboiler in ENA plant analyzercolumntoreducetheeffluent.

8. InstallationofVFDinsuperheaterfurnaceIDfantosavepower.

9. InstallationofVFDinspentwashrecyclespumpstosavethepower.

10. Installation of forced circulation calandria 4th& 5th in existing Evaporator plant to increasethroughput.

11. InstallationofLEDlightingandsolarheaters.

(c) Impact of the measures at (a) and (b) for reduction of energy consumption and consequent impact

Energy Conservation Measures: Benefits: Saving of Coal by Max.Biogasutilization inBoilers Upto41.51MT/day PreheatingofBoiler FeedWater Upto55.10MT/day OperationofEvaporator refluxPreheater Upto1.28MT/day InstallationofBoilerfeed waterpreheaterinMEG ProcessHeaters Upto2.19MT/day Preheatingof12MW turbinecondensatewith DehydrationSteamCondensate Upto7.10MT/day Utilizedhotcondensatein GEAandGEtoGenerate LPsteam Upto4.30MT/day Utilizedsteamcondensate togenerateflashSteamin GuarGumunit Upto4.93MT/day Saving of Power by OperationofTGSetat 124254.18MWH Optimumload(Kashipur) ofPower OperationofTGSetat 30171.26MWH Optimumload(Gorakhpur) ofPowerGenerated during the year (Last year18666.31MWH) Saving of Fuel (FO) by Utilizationofwastegas/ BiogasintheProcessHeater Upto20.10MT/Day Saving of Coal by SloputilizationinBoiler Upto152.25MT/Day Saving of Rice Husk by Max.SloputilizationinBoiler Upto300MT/day Processsteamcondensate utilizationinBoiler Upto750MT/day



(d) Total energy consumption and energy consumption per unit of production as Prescribed Form – A.

Form-AFormfordisclosureofparticularswithrespecttoconservationofenergy

Units Year ending March 2014 YearendingMarch2013A. Power and fuel consumption KASHIPUR PLANT i) Electricity a) PurchasedUnit 1000KWH 168649.04 153046.68 Total Amount ` Lacs 7980.61 7259.01 Rate per unit `/KWH 4.73 4.74 b) OwnGenerationthroughDGSets 1000KWH 2655.53 6739.12 UnitsperKg/LiterofDieselOil/HPS KWH/Kg 4.55 4.52 Cost/Unit `/KWH 10.16 9.90 ii) Coal Quantity MT 385235.34 437821.02 TotalCost ` Lacs 19359.92 21426.66 AverageRate `/MT 5025.48 4893.93 iii) Bagasse Quantity MT Nil 6566.71 TotalCost `Lacs - 121.69 AverageRate `/MT - 1853.06 iv) Fuel Oil (LDO/RFO) Quantity MT 5325.76 5079.94 TotalCost ` Lacs 2335.09 2165.45 AverageRate `/MT 43845.23 42627.55 v) Others/internal generation a) From Back Pressure Turbine Quantity 1000KWH 70593.05 69251.26 TotalCost ` Lacs Nil Nil AverageRate `/KWH Nil Nil b) From Extraction, Back Pressure & Condensing Turbine Quantity 1000KWH 53661.13 50910.31 TotalCost ` Lacs 2468.20 2565.90 AverageRate `/KWH 4.60 5.04 Total(a+b) 1000KWH 124254.18 120161.57

GORAKHPUR PLANT i) Electricity a) PurchasedUnit 1000KWH 3709.68 4258.84 Total Amount ` Lacs 341.07 319.11 Rate per unit `/KWH 9.20 7.49 b) OwnGenerationthrough 1000KWH 123.04 236.30 DGsetsUnitperKg/Lit ` Lacs 21.19 32.54 OfDieselOil/HPS Cost/Unit `/KWH 17.22 13.77 ii) Rice Husk Quantity MT 77495.41 66484.70 TotalCost ` Lacs 2257.23 1685.98 AverageRate `/MT 2912.23 2535.89 iii) Coal Quantity MT 14885.34 13410.77 TotalCost ` Lacs 858.93 720.46 AverageRate ` /MT 5770.27 5372.24 iv) OTHER/INTERNAL GENERATION (From Back pressure Turbine) Quantity 1000KWH 30171.26 18666.31 TotalCost ` Lacs - - AverageRate `/KWH - -

ENNATURE BIO-PHARMA PLANT:A POWER AND FUEL CONSUMPTION i) ELECTRICITY a) PurchasedUnit 1000KWH 5006.330 3989.68 Total Amount ` Lacs 254.37 184.64 Rate per unit ` /KWH 5.08 4.63 b) OwnGenerationthrough 1000KWH 736.45 827.76 DGsetsUnitperKg/Lit Kg/lt 3.59 3.51 OfDieselOil/HPS Cost/Unit `/KWH 14.22 11.26



FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION AND RESEARCH AND DEVELOPMENT (R & D).A. RESEARCH AND DEVELOPMENT1. SPECIFIC AREAS IN WHICH R&D IS CARRIED OUT BY

THE COMPANY• DevelopmentofNewGeneration“Green”surfactants”.• SpecialtyalcoholEthoxylateforconstructionchemicals.• Development of biodegradable and user friendly

surfactantsfortextileprocessing.• SpecialityAdditivesforContinuousProcessing(Textiles)• Development of low temperature & low dosage

demulsifiersforcrudeoilproduction.• Development of specialty surfactants for pigment

dispersionanddefoamerinpaints.• DevelopmentofEmulsifiersfornewlyintroducedcombo

pesticidesforexport.• DevelopmentofemulsifierpackageformultiToxicantfor

agro.• Development of wetting and dispersing agents for

powderformulationsinpesticides.• Development of specialty chemicals for Pulp&Paper

Industries.• AdjuvantsfortheHerbicidesformulations.• Developmentofhouseholdcleaningandpersonalcare

surfactants.• Development of newNatural Health Products (NHPs)

by Supercritical Fluid CO2 (SCF-CO2) ExtractionTechnology(GreenGingerproduct,ShogaolforcontrolofCancerslikeBloodLeukemia).

• MicroencapsulationofDocosahexaenoicacid(DHA) isdevelopedforitsstabilityandsustainedrelease.

2. BENEFITS DERIVED AS A RESULT OF ABOVE R&D• Providingeco-friendlysurfactantforpremiumapplication.• Developedlowdosageapplicationtoreducingtheload

oneffluenttreatment.• Product with cost advantage to customer with better

attributes.• Business sustainability and stability for capacity

utilizationofbothSCF-CO2plantto85%andAqueous-Solventextractionplantcapacityto80%.

• Obtained a WHO-cGMP drug approval for ActivePharmaceuticalIngredients(APIs).

• R&Dlaboratoryfacilitygivingroomforinnovationforthebenefitofprocessandproductdevelopment.

3. FUTURE PLAN OF ACTION• Random / block copolymers for Fibre Finish

applications.• EcofriendlysurfactantforEmulsion–Polymer/Paints.• New delivery system for control release in crop

protection.• Modified polymeric surfactants for oil field and

constructionapplication.• EcofriendlyemulsifierforCropprotection.• Enzyme based formulations for textile and paper

application.• Upgradationof laboratoriesand instrumentapplication

labs.• Add value addition to SCF-CO2 products at new

formulationblockandenhanceproductprofile.• AdditionofnewextractorstoexistingSCF-CO2plant.• SettingupofBiogasplantorSolidfirewasteboilerfor

energysaving.• Tobroadenthereachactivitiesonvariousnewproducts

like Insulin Rejuvenator from Karela fruit, Naturalvitamin-D fromDay-Jasmine and InsulinPlantCostusforInsulinSynthesis.

• TogoforacommercialprocessandlaunchofVinpocetinetothemarket.

• An increase inHerbalprocesscapacityofAqueous-Solventextractionto700ton/annumwithwideproductportfoliobynewfacilitycreatedforAqueous-Solventplant

4. (i) EXPENDITURE ON R&D (Chemical, Kashipur) 2013-14 (` in Lacs) Capital 79.33 Recurring 130.09 Total 209.42 Totalexpenditureasapercentageof totalturnover 0.07% (ii) Expenditure on R & D (Ennature Biopharma, Dehradun) 2013-14 (` in Lacs) Capital 13.12 Recurring 115.04 Total 128.16 TotalExpenditureasapercentage oftotalturnover 0.04%B) TECHNOLOGY ABSORPTION AND INNOVATION

• Development of new cost effective feed stock (RM)source.

• Developed APEO free emulsifiers for textileapplications.

• Developedlowtemperature,lowdosagedemulsifierforcrudeoildemulsificationanddehydration.

• Method development for chain distribution andEthoxylatedproductsbyG.C./HPLC.

• Developed scaling inhibitors, biocides for oil and gasindustriesapplications.

• Utilized the technology and widen the product range toharnessthemarketwithpotentiallyqualityproducts.

INFORMATION ABOUT IMPORTED TECHNOLOGY (IMPORTED DURING THE LAST 5 YEARS RECKONED FROM THE BEGINNING OF THE FINANCIAL YEAR) : NAFOREIGN EXCHANGE EARNING AND OUTGO:(i) Activitiesrelatingtoexports,initiativetakentoexports,

development of newexport for products and servicesandexportplans.

:FOBValueoftheExportsduringtheyearwere` 1108Crores

(ii)TotalForeignExchangeused : TotalForeignExchangeusedwas`849Crores(PreviousyearForeignExchangeusedwas` 839crores)

Form-B

forandonbehalfoftheBoard

Place:NOIDA,U.P. U.S. BhartiaDated:04.08.2014 Chairman and Managing Director



ManagementDiscussion&AnalysisReport

PRODUCTSINDIA GLYCOLS LIMITED is one of the leadingmanufacturer of Glycols, Ethylene Oxide Derivatives,Natural Gum & Derivatives, Ethyl Alcohol (Potable),Extra Neutral Alcohol, Nutraceuticals &Herbal ExtractsandIndustrialGases.Ourbeliefinprovidingthedesiredproductswiththehelpofthebesttechnologyisreflectedinourstate-of-the-artintegratedmanufacturingfacilities.

Themanufacturingbuildingblocksarerepresented:-

TheCompanyhasorganiseditsbusinessintochemicalsandothersegments.A.Chemicalsegmentscomprises:- •Glycols(MEG,DEG,TEGandHeavyGlycols) •EthyleneOxideDerivatives(EODs) •NaturalGumandDerivativesB.EthylAlcohol(Potable)andExtraNeutralAlcoholC.Others include Nutraceuticals & Herbal Extracts,

IndustrialGasesetc.Thesegmentwisebusinessshareisindicatedasfollows:-

Segment Sales Value 2013-14 (` In Crores)

(domestic + Exports)

% Share

Chemicals 2,710 79%

EthylAlcohol(Potable)

667 19%

Others 56 2%

Total 3,433 100%

CHEMICAL SEGMENTSales in the Chemical segment has decreased from ` 3091croresinFY2012-13to` 2710croresinFY2013-14. This segment is highest contributor at 79% to thetotal turnoverof theCompany.Decrease in value isonaccount of depressed global economic situation whichhas resulted in reduction of commodity demand andsteep fall in Guargum prices. Company has regulateditsDomesticsalesasitwasnotfeasibletomarketMEGusingexpensiveEthanol.

2011-12 2012-13 2013-14ChemicalSalesValue(ìnCrores)

2,339 3,091 2,710

GLYCOLS AND EODSalesofGlycols (MEG,DEG,TEGandHeavyGlycols)hasincreasedfrom91,225MTinFY2012-13to95,342MTinFY2013-14andinSalesValuefrom`693CroresinFY2012-13to`758CroresinFY2013-14.Inviewofhigher feedstockcost, thefocushasbeenonsalesofBio-MEGforexports.SalesunderEthyleneOxideDerivatives(EOD)businessdecreasedmarginallyto103,713MTinFY2013-14from104,755 MT during previous year. However, in valuetermsithasincreasedfromRs1005Croresin2012-13to`1106CroresinFY2013-14.EODbusinessaccountedfor41%ofcompany’s revenue fromChemicalbusinessandishighestcontributorat32%tothetotalrevenueoftheCompany.EODbusinesshaswitnessedimprovementinprofitabilityduetohigherpricesofEthyleneandEthyleneOxideintheworldmarket.TheEODproducedbythecompanyareusedbydiverseindustries like Textile, Agrochemicals, Detergents,Pharmaceuticals & Personal Care, Oil Field andAutomotiveindustry,Paint&Coatingindustry,etc.TheCompanyaimstoincreaseitsbusinessbydevelopingnew products and applications especially in areas oftextile chemicals, oil field chemicals, paper chemicals,homecare&personalcareapplications.ThethrustwouldbeinlinewiththestrategytomaximiseEODbusinessinviewofincreasingtheusageofEOforEODerivativesforimprovedmargins.

BIO-ETHOXYLATESWe have initiated promotion of Bio-Ethoxylates in theinternational market which is gaining acceptability andcan be a good opportunity for better realisation in thenichemarketsegments.

NATURAL GUMSThe performance under theNaturalGumsDivision hadsuffered set back during the year under review dueto steep fall in Guargum prices consequent upon theoversupplyintheIndianmarket.Inspiteofthedepressedmarketconditions forGuargum,Companyhascarvedaniche in world market and now is known as the consistent qualitymanufactureramongthecustomersworldover.

ENALiquor

Distillery Bio-Ethanol Ethylene

Bio-Ethylene

Oxide

Bio-GLYCOLS Bio-EODs

PerformanceChemicals

O2 / N2 / Ar

Food GradeCO2

Molasses

A S UO2

Manufacturing Building Blocks 2011-12 2012-13 2013-14Year

2,339

3,091 2,7103,5003,0002,5002,0001,5001,000

500-

Sal

es V

alue



1,255

1,772

1,195

OPPORTUNITIES & CHALLENGESMEG consumption for polyester industries for 2013-14hasbeenaround2.2milliontons.Themajorincreaseincapacity has come fromexpansion at leading domesticindustries.Domestic production ofMEG is around 1.1million tonsprimarilyfromReliance&IOCandbalancedemandhasbeen met by imports. Overall demand supply balancehave been favorable for MEG producers in the worldmarketin2013-14andpriceswereintherangeof$1000to$1200perMT.Company in its long term strategy, is shifting fromcommodity to niche markets and specialty products and woulddivertEOmoleculeforBio-MEGandEODerivative/Specialtyproductswhichwillgiveusamuchbetterreturns.CompanyispromotingitsGlycolsasBio/GreenMEGtopotentialcustomers interested inmeeting theirobjectiveof using environment friendly chemicals made fromnatural renewable resources. Company has convertedthisconcept intoagoodbusinessopportunitywhichwillenable full capacity utilisation with better realisation.Moreover,thenichemarketsofBIOMEGinthepackagedwater,automobile,personalcare&cosmeticsaregoingtogiveusbettermargins.

ETHYL ALCOHOL (POTABLE) AND EXTRA NEUTRAL ALCOHOLIn theEthylAlcohol (Potable)andExtraNeutralAlcoholsegment,Companyregisteredtotalsalesof` 657Crorescompared to ` 660Croreslastyearand` 502Croresayearbefore.Effortsarebeingmadetofurtherincreasethesalesinthesegment.

2011-12 2012-13 2013-14SalesValue(ÌnCrores)

502 660 657

INDUSTRIAL GASESCompany produced 726 lacs NM3 of Oxygen and 228lacsNM3ofNitrogenduringtheyear.BothOxygenandNitrogen successfully marketed and also used for ownrequirementofMEGPlant.Industrialgasesdivisionalsoproduced16lacsNM3ofArgonand37,877MTofCarbonDi-oxide,whichweremarketedsuccessfully.UndertheIndustrialGasesdivision,Companyregisteredtotalsalesof`40Crorescompared to`34Crores last

year and `31Croresayearbefore.

2011-12 2012-13 2013-14

SalesValue(` In crores)

31 34 40

EXPORTSCompany has identified exports as a key future growthdriver.Ithasalreadyestablisheditselfasamajordomesticspeciality ethoxylates company and with the increasedcapacities, the scope for exportswould be explored forhighergrowth.Exports sales has decreased by 33% in turnover from` 1772Crores in2012-13 to` 1195Crores in2013-14onaccountofdepressedglobaleconomicsituationwhichhasresultedinreductionofcommoditydemandandsteepfall inGuargumpricesanddue tostrategiccutdown inthesalesofGlycolEtherAcetates inviewof lowpricesinChina.ThefuturethrustwouldbeintheareaofmarketingBio-MEG & Bio-Ethoxylates to niche markets for achievingbettercontribution.

2011-12 2012-13 2013-14ExportsSalesValue(` In crores)

1255 1772 1195

ThemajorexportmarketsaretheSouthEastAsia,MiddleEastandChinaaswehave logisticadvantage in theseregions.Weexportourchemicalproductstomorethan40countriesworldwideandthethrustforexportswouldbetootherregionsinEurope,USA,Japan&LatinAmericaforpromotionofBio-MEGandBio-EODs.

FINANCIAL REVIEWIn addition to the depressed global economic situationwhich has resulted in reduction of commodity demand,theperformanceoftheCompanyhasalsobeenadversely

2011-12 2012-13 2013-14Year

403431

45403530252015105-

Sal

es V

alue

Sal

es V

alue

2011-12 2012-13 2013-14Year

502

660 657700600500400300200100

-

2,0001,8001,6001,4001,2001,000

800600400200

-

Sal

es V

alue

2011-12 2012-13 2013-14Year



affected due to loss on account of foreign exchangevolatility.Theperformancewasfurtheradverselyaffectedas domestic prices of our feedstock viz. molasses andalcoholwashighonaccountofpooravailabilityofalcoholand diversion of alcohol towards the implementationof Ethanol Blending with Petrol (EBP) Program ofGovernmentofIndiaatanunrealisticpriceresultinginasharpincreaseinthepricesofalcohol.

Sales and other income for the year under review hasbeen`2,914Croresascomparedto` 3,347Croreslastyear.Lossafterdepreciation,exceptionalitemandtaxfortheyearhasbeen` 120Croresascomparedtoprofitof` 121Croreslastyear.

Duringtheyearunderreview,CompanyhasraisedTermLoans of ` 200Crores and repaid total loans of ` 189Crores.

During the year under review, the Gross Fixed Assetshas increased to ` 1,900Croresfrom` 1,729Croresin2012-13.

TheCompanyhasbeenregularinmeetingitsobligationstowards payment of principal/interest to FinancialInstitutions/Banks/Debenture holders/Fixed Depositholders.

HEALTH, SAFETY, ENVIRONMENT & MANAGEMENT SYSTEMS Company has signed Responsible Care® GuidingPrinciples to become signatory to Indian ChemicalCouncil’sResponsibleCare®initiative.ThesePrinciplesapply to the Company globally. Being a ResponsibleCare® signatory, company is committed for continualimprovement of the performances in the fields ofenvironmentalprotection,occupationalsafetyandhealthprotection, process safety, product stewardship andlogistics,aswellastocontinuouslyimprovedialoguewiththeneighborsandthepublic.

HEALTHCompany accords very high priority to provide healthyandsafeworkingenvironment.Companyhasamedicalcenterat factorysitewithbasicamenities, twoqualifiedand experienced doctors with trained and experiencedpara-medicalpersonnelareavailable round theclock tomeet any contingency. Company also has a qualifiedOccupational Health Physician. Company has also anambulance to provide necessary assistance in case ofanyemergency.Allemployeesarerequiredtoundergoannualmedicalcheck-upforearlydiagnosisofanyhealthproblems.Companyhasmadearrangementsfortreatmentofemployeesandtheirdependentsunderthemediclaiminsurancepolicy,whichallowsemployeetoavailtreatmentfromanyofthelistedhospitalswithouthavingtomakeanyimmediatecashpayments.Thisprovidestheemployees

muchneededemotionalandfinancialsecurity.Companyorganizes blood donation camp at Company as part ofcommunitywelfareactivities.

Companyorganizesmedicalcampsatnearbyvillagesandorganize/assistinNationalhealthrelatedprogramsinthenearbyvillagesaspartofcommunitywelfareactivities.

SAFETYCompanyhassetupelaboratesafetysystemstoensureproper safe work environment. Emphasis is given toprevention of any accident. As a result of strict safetynormsbeingfollowedcompanyhasbeenabletomaintaingoodsafetyrecordandhasreceivedvariousprestigiousnationaland internationalsafetyawards recognizing thesafeworkingenvironmentavailableatthefactory.

A Central Safety Committee has been constituted tocontinuously review and upgrade the safe workingpractices. Emergencymanagement plan is in place formeeting any kind of emergency. Proper systems havebeensetup torecordandreportanyaccident,which isthoroughly investigated and corrective action taken forfutureprevention.Atworkplaceappropriateprotectiveequipmentandgearsareprovidedtotheemployeesandusageofthesameisstrictlymonitoredtoensurehighlevelofsafety.Safetytraining programs are regularly conducted for trainingthe employees in proper use of safety equipment andfollowingthesafeworkpractices.Variousincentiveschemesareinoperationformotivatingtheemployeestoensureworkinginthesafeenvironment.Company has its own Fire Station fully equipped withFire Tenders, modern communication facilities andelaboratefirehydrantsystemandotherequipmentwhicharemannedandsupervisedbytrainedexperts.Livefiretrainingdrillsareorganizedtoprovidehands-ontrainingtotheemployees.

ENVIRONMENTAL STEWARDSHIPEnvironmentalstewardshipreferstoresponsibleuseandprotectionofthenaturalenvironmentthroughconservationandsustainablepractices.Companyusesmolasses,residueproductofsugarmillsgeneratedintheprocessofmanufacturingofsugar.Themolasses converted into alcohol in the captive distilleryandthereafterusedintheprocesstomakeethyleneandits products. Company has set up elaborate systemsby making substantial capital investments for propertreatment of the effluent generated and meets all therequirementsinthisregard.TomakethesystemmoreEco-friendly,companyhassetupcontrolledlandapplication,whichisgivinggoodresults.Theresponsefromfarmershasbeenveryencouraging.Towards improvementof theenvironmentcompanyhas



developedagreenbeltallarounditsfactorybygrowingapprox. 1,20,000 trees of different species some ofwhich are fruit bearing in addition to providing greencover.Allpossibleeffortsarebeingmadetopreservetheenvironmentandimprovethesameasfaraspossible.Company has already achieved zero effluent dischargefromtheirEthanolPlantsbyinstallingROsystemfollowedbyBio-composting and concentrated effluent burning inspeciallydesignedBoilers.The liquid effluent fromDistillery is concentrated in theevaporatorsystemtogenerateconcentratedspentwash(slop). The Slop (concentrated spent wash) from theevaporatorisusedasfuelforthegenerationofsteamandelectricity.Thisisanovelboilerthathasbeendevelopedforutilizationofconcentratedspentwashandgenerationofsteamtherefrom.

SUSTAINABLE ENVIRONMENT AND CLIMATE CHANGE INITIATIVESLife Cycle Management Capacity Maturity Model (LCMCMM) pilot project of Company has been acceptedby UNEP (United Nations Environment Program) todemonstratetheusefulnessofLifeCycleInitiative.UNEPhad called for proposals from companies interested inimplementing life cycle management in their businessoperations.UNEPhadreceivedatotalof22applicationsfromaroundtheworld,andonly8wereselected,includingourapplication.Aspartoftheprogram,companyhasreceivedtechnicalandfinancialsupportfromUNEPthroughFICCI(FederationofIndianChambersofCommerceandIndustry)forthepilotprojectonLCM-CMM,andcasestudieswillbepublishedtoinspireotherbusinessesacrosstheworld.Company prepared documented system under LCM tocollect data for LCA of product and conducted LCA ofPOLYMEG1200AP.Company believes in life cycle approach which directsbusiness to consider responsibility on environmentalprotection from raw material procurement to productuse. Company has conducted comparative Life CycleAssessment (LCA) study of Bio-Mono Ethylene Glycol(Bio-MEG) based on ISO 14044-2006 standards anddetermining several Environmental Impacts (includingCarbon Foot-Print) from its Renewable ManufacturingApproaches and conclude that “Manufacturing MEGthroughRenewablebasedrawmaterialsisabetteroptionthan adopting Conventional Petro route approaches inIndia,USandEurope”.TheLCAstudywasconductedonapurchasedsoftware-SIMAPROand report of “LCAonBio-MEG”gotPeerReviewed.IncontinuationCompanyhasalsoconductedLifeCycleAssessment (LCA) study for its other products as Bio-Ethanol, Bio-EO, Bio-DEG, Bio-TEG, Bio-MEGEE, Bio-

DEGEE, Bio-TEGEE, PEG-600 & Allyl Alcohol PEG1200etc.Company isworkingcontinuousonLifeCycleAssessment(LCA)studyforitsotherproductsasEthyleneOxidederivativesandspecialtychemicals.Company has taken up several initiatives in promotingclimatechangeandenvironment-sustainableprojects.Asaresultofsuchcontinuousefforts,Company’sGorakhpurplanthasgotitsLargescaleCDMproject(Title:BiomassbasedCogenerationProject activity takenup by IGLatGorakhpur, U.P; Annual CERs: 110157) registered atUNFCCC.

MANAGEMENT SYSTEMSINTEGRATED MANAGEMENT SYSTEMCompany is having Integrated Management System(IMS) comprising of Quality Management System (ISO9001:2008), Environmental Management System (ISO14001:2004),OccupationalHealth&SafetyManagementSystem(OHSAS18001:2007),FoodSafetyManagementSystem(ISO22000:2005),FoodSafetySystemCertificate(FSSC22000:2010).EnergyManagementSystem(ISO50001:2011) andSocial Accountability (SA 8000:2008).IntegratedManagementSystemhasbeenaccreditedbyM/sDNV,arenownedcertificationagency.WehavesuccessfullylaunchedandimplementedBehaviorBasedSafety(BBS)namingitwithanappropriatename,derivedbyopenforumconsensus“BHAVISHYA BANAYE SURAKSHIT”.

PROCESS SAFETY MANAGEMENT SYSTEMCompanyisworkingtowardsimplementationofProcessSafetyManagement(PSM)intheorganizationtoensuresystematicandhighlevelProcessSafetybyelaboratingitsspecificelementsandensuringthesafetyofemployees,environmentandphysicalplantassetsintheeventofanyunexpectedprocessexcursion.

LEAN MANAGEMENTCompanyisadoptingasystematicapproachtoidentifyingand eliminating non-value-added activities throughcontinuousimprovementbyfollowingtheproductthroughflow processes based on a signal from the customers(internal&external).Companyusesthebuildingblocksof-standardizedwork,optimization of manpower, workplace organization 5S& visual controls, material handling systems, effectiveplant layout, improved operational and maintenancepractices,qualityatthesource,batchreduction,customerdemand-based manufacturing, point-of-use storage,quick changeover, cellular manufacturing, processimprovements, Kaizen, world class manufacturing,synchronousmanufacturing,andinventorymanagement.We are committed to work towards continual improvement of Quality, Environment, Health &



Safety, Food Safety, Energy Performance and Social accountability and we discourage discrimination of any kind in any form.

RESEARCH & DEVELOPMENT CENTRE (R&D) - FOCUS ON CUSTOMER-ORIENTED INNOVATIONResearchanddevelopment isoneof thekeydriversforthe business at India Glycols Limited. This contributesbothforthesustenanceoftheexistingbusinessandforthegrowthviainnovation.TheInnovationStrategyatIGLisalwaysfocusedtocreatevaluefortheproductsorforthe application at the customer end and in nutshell the strategy is to create awin-win situation for IGL and itsvaluedcustomers.Thedevelopmentalactivitiesarecarriedoutatthestate-of-the-artR&DCentre locatedatKashipur.Thecentreisequippedwithmostmodernandadvancedinstrumentsand with a team of highly experienced and dedicatedresearchers. The resultant scientific milestones havelaid the ground work for numerous solution-orientedapplications in awide variety of industry sectors,whichin turn ensures our profitable growth and sustainablecommercialsuccess.The rapidly growing and aging environment and waterpollution,risingdemandforenergyandclimateprotectionrepresent global challenges which we address withinnovative solutions through GREEN CHEMISTRY.The efforts have led to many customized value addedproductsandprocesseswithemphasison“Sustainable”approaches via use of renewable RMs and savings ofenergy and water. These products and processes aredesigned to meet most of the international standardsandareaccreditedwithorganizationslikeControlUnion(Europe)i.e.GOTS,Oekeotex,REACHetc.TheR&DCentreisdulyrecognizedbytheDepartmentofScience&Technology(DST),Govt.ofIndia.Atpresent,thefocusofR&Dcenterhasbeeninworkingwithcustomizedprojectsforvariousindustrialapplicationssuchas:1. Development of alternative feed stock (RM)

source:• Development of new cost effective feed stock

source 2. Textile Processing (Fibre& Fabric processing)

• Productsforcontinuousdyingrange(CDR)basedonGREENCHEMISTRY.

• Enzyme baseProducts forDesizing /Scouring &Peroxidebleachingprocess.

• GreenproductsforFibrefinish.• All in one chemical for single bath scouring and

dyeing(withreducedwaterconsumption).3. Crop-Protection Business

• Surfactants for capsule suspension- ControlledRelease Applications

• SingleEmulsifierpackageformultipletoxicants.• Emulsifierforpowderandgranuleformulation.• SurfactantforspecialComboformulation.

4. Oil & Gas Industry• Lowtemperature& lowdosedemulsifier forcrude

oil.• EmulsifiersforOrchidsprayoil.

5. Emulsion Polymerization & Paint Industry• Ecofriendly surfactant (Vegetable oil based) for

pigmentdispersion.• Universalcolorantforwater&oilbasedpaint• APEOfreesurfactant forEmulsionPolymerization

process.6. Paper Industry

• Universalcookingaid.• Dry&wetstrengthresin.• Eco-friendlydeinkingchemicals.

7. Automobile industry• EcofriendlysolventfreePourPointDepressant.• Lubricantadditives.

8. Detergent / Personal care Industry• Eco-friendly and biodegradable amphoteric

surfactantforpersonalcareproducts.• Esterforpersonalcareproducts.• Surfactantforhardsurfacecleaningagent

9. Construction chemicals• SpecialtygreenEthoxylateforPolycarboxylateas

waterreducingagent&strengthimprover.

ThemostimportantproductdevelopmentprincipleofIGL’sR&Dhasbeentofocuson3Esi.e.Efficiency;Economicand Environment friendliness. The R & D not onlydevelopstheproductsasper theneedof thecustomersbutalsoensuresthesmoothperformanceoftheproductsatcustomers'endviaveryeffectivetechnicalserviceteam.Further,thelifecycleanalysisandbiodegradabilityoftheseproductsareensuredpriortothelaunchoftheproducts.

RISK AND CONCERNSRisk Factors & Minimization procedure1. Risk against fire, flood and accidents including

accident due to human failure and health related problems and personal accident of the workforce

Riskagainstfire,flood,accident,healthrelatedproblemsandaccidentsofworkforcearecommonrisksattachedtotheworkingofanyplant/company.Managementhastakenreasonablestepstocountertherisk.Companyhas taken comprehensive all risk Insurance policy,whichcoverscompany’sassetsagainstallrisks.Thepolicy also covers repair/replacement in case of anymajorbreakdown.Thepolicyalsocoverslossofprofitduetointerruptiononaccountofanyofthesecauses.

Accidentsduetohumanfailurearebeingtackledthroughthecontinuoustrainingtoourtechnicalandotherstaffandthroughregularmonitoringandsupervision.

As a preventive measure, company has installedelaborate fire hydrant system to take care of anypossiblefireaccident.Companyalsohas itsownfiretenderlocatedatKashipurfactorysite.Companyhasalso created teams of employees to co-ordinate firefightingactivitieswhohavebeenduly trained for the



purpose.Periodicdrillsarecarriedout tosee thatallsystems functionsadequately.Companyalsocarriesoutperiodicalspecialauditstoreviewtheadequacyoffireprotectionmeasurestoavoidanysuchaccidents.Asaresultofthesepreventivemeasurescompanyhasneverhadanyseriousfireaccident.

AlltheemployeesoftheCompanyareinsuredundergroupmediclaimandaccidentalinsurancepolicy,whichprovideshealthrelatedsecuritytotheemployeesandtheirdependentfamilymembers.

2. Availability of raw material at competitive prices Company manufactures various products using

molasses as basic raw material. Molasses is thewaste product of sugarmills.Sugar caneproductionisdependentonadequacyofrains.Thusavailabilityoffeedstockisaffectedbyclimaticconditions.Toprotectagainst this risk, companyhascreated largestorageforthefeedstocksothatadequatequantitiescanbeprocuredduring the seasonandalso the inventoriescanbebuiltupduringtheperiodofgoodmonsoon.

CompanyalsohasdistilleryatGorakhpur inEasternU.P.sothatcompanycanprocuremolassesavailablein that area to improve availability of feed stock byexpandingitsprocurementoverlargerarea.

3. Competition Risk and fluctuation in market price of finished product.

TheCompanyhasalsoexpandeditscapacityofMEGtocompete in thevolume tradingandminimizing themarginalcostonproduction,resultinginhigherprofits.

Company has broadened its product and customerbase by diversifying into Ethylene Oxide basedderivativesproduct.CompanyhasalsosetupitsownR & D and Application Development Centre whereproducts to provide economic and cost effectivesolutionsaredevelopedtomeetspecificrequirementof thecustomersand theseproductsareprovided tothematcompetitiveprices.

TheCompanyhasalsodiversifiedintootherareasofbusiness like potable alcohol, Nutra-ceutical HerbalExtraction, Industrial Gases and Natural Gum tominimizeriskfromsinglebusiness.

4. Environment Risk Company operations are governed by very strict

effluent disposal requirement. Company has takenadequatestepstomeetthestatutoryrequirementsanditisconstantlyimprovinguponthesame.Companyhasinstalledeffluenttreatmentsystemswherebyeffluentisconvertedintofuelandisusedinsubstitutionofcoalthus while meeting the environment requirementscompanyalsoachievessavingincost.

5. Foreign currency fluctuations. Inthenormalcourseofbusinessoperationscompany

ishavingvariousforeigncurrencytransactionsfor- importofcapitalgoodsandrawmaterials- exportoffinishedproducts- repaymentof foreign currency loans and interest

thereon.

All above transactions are exposed to the risk ofexchangeratefluctuations.InadditionthepaymentofinterestontermloansisalsoexposedtofluctuationsininterestrateduetochangeinLIBOR.

Most of these transactions are in US Dollars andinwardandoutwardflowsservetocounter-balancetheimpactoffluctuations.Tofurtherprotectthecompanyfromtherisk,withadvicefromvariouscurrencyexpertsfromBanks,preventiveactionsaretakentohedgetheforeigncurrencytransactions.

6. Default/late in Payment realization Inthenormalcourseofbusiness,itisnormalpractice

thatthereisdefaultinpaymentrealizationorrealizationis late. The Company has regular monitoring andreportingofdefault inpaymentrealizationand/or laterealization.Properfollowupinthematterisensuredby the respectivedepartments. Incaseof longoverdues, legal notices are being served through legaldepartmentoftheCompanyandthroughlegalcounselas the case may be. In case of default of paymentrealization,ifnotrealizedevenafterlegalnotices,legalcasesagainstthedefaultersarebeinginitiated.

7. Compliance of various statutory and legal requirements

TheCompanyissubjecttocomplianceofvariousstatutoryandlegalrequirementsunderdifferentlawsinforce.TheCompany adheres to the statutory requirements andregularlyreviewsthecompliancetoovercomesuchrisk.TheCompany has also appointed Internal Auditors fortheircontinuousreviewofthecomplianceandadviceonbetter compliance reporting. TheCompany also placesperiodic compliance report on Corporate GovernancebeforetheBoardofDirectorsasrequiredbytheSEBIandMinistryofCorporateAffairs.

INTERNAL CONTROL SYSTEM AND ADEQUACYCompany’s internal control system and procedures areadequate.Thesystems,procedures,checksandcontrolsareroutinelytestedandcertifiedbyourStatutoryaswellas Internal Auditors. Moreover, Company continuouslyupgrades these systems in linewith best practices andstandardsoninternalcontrolsystemsandprocedures.

HUMAN RESOURCE/INDUSTRIAL RELATIONSCompanycontinuestofocusontrainingitsemployeesonacontinuousbasisbothon the joband through trainingprogram to face challenges in the business/industry.During the year, industrial relations have been cordial.Total numbers of employees on Company’s role havebeenaround1300.

CAUTIONARY STATEMENTThestatementmadeinthisreportdescribingtheCompany’sexpectations andestimationsmaybea forward lookingstatement within the meaning of applicable securitieslawsandregulations.ActualresultsmaydifferfromthoseexpressedorimpliedinthisreportduetotheinfluenceofexternalandinternalfactorswhicharebeyondthecontroloftheCompany.



ReportonCorporateGovernanceCompany’s philosophy on Corporate GovernanceGood corporate practices ensure that a Company meetsits obligations to optimise shareholders’ value. Corporategovernancehasassumedgreatsignificance in India in therecentpastintheformofenactmentoftheCompaniesAct,2013andamendmentstotheListingAgreementwithStockExchanges. The provisions of the Corporate Governancecode prescribed by the Companies Act and the ListingAgreement,forthetimebeinginforce,havebeencomplied.

BOARD OF DIRECTORSa) Composition of the Board As on 31stMarch,2014theBoardofDirectorscomprised

ofnineDirectorsoutofwhichsevenareNon-ExecutiveDirectors, oneManagingDirector andoneExecutive

Director.OutoftheNineDirectors,CompanyhasFiveIndependentDirectors.

b) Number of Board Meetings During the year ended 31stMarch, 2014, fourBoard

Meetings were held, on 30th May, 2013, 9th August,2013,11thNovember,2013and12thFebruary,2014.ThedetailsofBoardmeetingsaregivenbelow:Date Board

StrengthNo. of Directors

PresentMay30,2013 9 8

August9,2013 9 9November11,2013 9 8

February12,2013 9 9

c Directors’ attendance record and Directorship in other Public Limited Companies:Name of the Director Position Board

Meetings held during

the year

Board Meet-ings attended

during the year

Whether attended last AGM

Directorship in other public

Limited Companies*

ShriU.S.Bhartia ChairmanandManagingDirector

4 4 Yes 4

Smt.JayshreeBhartia PromoterDirector 4 3 No 2ShriPradipKumarKhaitan Non-Independent

Director4 4 No 14

ShriAutarKrishna IndependentDirector 4 4 No 6ShriJitenderBalakrishnan IndependentDirector 4 4 No 12ShriRaviJhunjhunwala IndependentDirector 4 3 No 12ShriJagmohanN.Kejriwal IndependentDirector 4 4 No NilShriR.C.Misra IndependentDirector 4 4 Yes NilShriM.K.Rao ExecutiveDirector 4 4 Yes Nil

NOTE:NoneoftheDirectorsisamemberofmorethan10BoardLevelCommittees,oraChairmanofmorethanfivesuchcommitteesasrequiredunderClause49ofthelistingAgreement.

*ExcludesDirectorshipinPrivateLimitedCompanies

d) Disclosures(i) Thedetailsof relatedparty transactionswith the

Company as required by Accounting Standard(AS-18)onRelatedPartyTransactionshavebeengiven in Note no. 41 of the Notes to Accounts.Besidesthis,Companyhasnomateriallysignificanttransactionwiththerelatedpartiesviz.Promoters,Directorsorthemanagementorrelativesandtheirsubsidiaries,etc.thatmayhaveapotentialconflictwiththeinterestoftheCompanyatlarge.

(ii) Nopenaltiesorstrictureshavebeen imposedorpassedontheCompanybytheStockExchangesorSEBIoranyStatutoryAuthoritiesonanymatterrelatedtoCapitalMarketsfornon-compliancebytheCompanyduringlastthreeyears.

(iii) FollowingNon-executivedirectorsareholdingequitysharesofthecompanyasperfollowingdetails.

Name of Director No. of Shares

Smt.JayshreeBhartia 400003

ShriR.C.Misra 500

ShriAutarKrishna 1000

e) Remuneration of Directors, sitting fees etc. for the year 2013-14

During the year under review, Shri U.S. Bhartia,Chairman and Managing Director, was paid salary,Commission and perquisites for ` 2,67,03,153/-(RupeesTwoCroresSixtySevenLacsThreeThousandOne Hundred fifty Three Only) and Shri M.K. Rao,ExecutiveDirectorwaspaidsalaryandperquisitesof`64,80,457/-(RupeesSixtyFourLacsEightyThousandFour Hundred Fifty Seven Only). Besides above,



the Chairman andManaging Director and ExecutiveDirector were entitled to Company’s contribution toprovidentfundandgratuityfund.

Commission and Sitting fees paid to non-executivedirectorsfortheyearended31st March,2014

Name of director Commission (`)

Sitting Fee (`)

Smt.JayshreeBhartia - 2,20,000

ShriAutarKrishna - 2,10,000

ShriPradipKumarKhaitan

- 90,000

ShriJagmohanNKejriwal - 2,10,000

ShriR.C.Misra - 4,10,000

ShriRaviJhunjhunwala - 60,000

ShriJitenderBalakrishnan - 80,000

During the year, legal professional services fee of ` 35,66,615/-(RupeesThirtyFiveLacSixtySixThousandSixHundredFifteenonly)werepaidtoKhaitan&Co.,LLP,Advocates,inwhichShriPradipKumarKhaitan,DirectoroftheCompanyisapartner.

f) Code of Conduct for Board of Directors and Senior officials of the Company

TheCodeofConductdulyapprovedbytheBoardhasbeenpostedonCompany’sweb-site(www.indiaglycols.com). All Board members and senior managementpersonnelhaveaffirmedcompliancewiththecodefortheyear2013-14,declarationbyChairmanandManagingDirectortothiseffectisenclosedwiththisreport.

COMMITTEES OF THE BOARDa) Audit Committee

(i) Terms of Reference Apart fromall themattersprovided inClause49

oftheListingAgreementandSection292AoftheCompaniesAct,1956,theAuditCommitteereviewsreport of the internal auditors, meets statutoryauditorsasandwhenrequiredanddiscussestheirfindings, suggestions, internal control system,scopeofaudit,observationsofauditorsandotherrelatedmatters. ItalsoreviewsmajoraccountingpoliciesfollowedbytheCompany.

(ii) Composition As on 31stMarch, 2014 theCommittee consists

ofthreenon-executiveandindependentDirectors,namely,ShriR.C.Misra,ShriAutarKrishnaandShriJagmohanN.Kejriwal.

(iii) Attendance record of the Audit Committee The Committee met four times during the year.

The attendance record of the members at themeetingsisasfollows:

Name of the Member Status No. of Meetings Attended

ShriR.C.Misra Chairman 4

ShriJagmohanNKejriwal

Member 4

ShriAutarKrishna Member 4 b) Investors’ Grievance Committee

i) Terms of Reference TheCommitteehasbeenconstitutedtolookinto

the redressal of investors’ complaints and anyother matter relating to shareholders/investorsgrievance.

ii) Composition As on 31stMarch,2014thecommitteecomprises

of three non-executive Independent Directors,namely, Shri R.C. Misra, Chairman of thecommittee, Shri Autar Krishna, Shri JagmohanNKejriwalandoneExecutiveDirector,ShriU.S.Bhartia,ChairmanandManagingDirector.

iii) Attendance record of the Investors’ Grievance Committee

The Committee met four times during the year.The attendance record of the members at themeetingsisasfollows:



ShriU.S.Bhartia Member 4

ShriJagmohanNKejriwal

Member 4

ShriAutarKrishna Member 4

iv) Investors’ complaints received and resolved during the year

During the year under review, Company hadreceived34Investors’Complaintsupto31stMarch,2014,CompanyhadredressedallComplaints.

c) Share Transfer Committeei) Terms of Reference TheCommitteeoftheBoardofDirectorshasbeen

constituted to review and approve the request fortransfer/transmissionofsharesandissueofduplicateshare certificates. The Share Transfer Committeealso reviews the status of Shareholding pattern oftheCompanyandsignificantchanges,ifany.

ii) Composition As on 31stMarch,2014,theCommitteecomprises



of four Directors, namely, Shri U.S. Bhartia, Smt.Jayshree Bhartia, Shri Jagmohan N Kejriwal andShriR.C.Misra.

iii) Attendance record of the Share Transfer Committee

TheCommitteemet twenty timesduring theyear.The attendance record of the members at themeetingsisasfollows:


ShriU.S.Bhartia Chairman 20

Smt.JayshreeBhartia Member 16

ShriJagmohanNKe-jriwal

Member 4

ShriR.C.Misra Member 20

d) Finance Committee(i) Terms of Reference TheFinanceCommitteeshallconsiderandapprove

Corporate Deposits and Investment, investmentof surplus funds from time to time inmarketablesecurities, to take decisions on the BankingoperationsoftheCompanyandtoconsider,reviewandapprovetheborrowingsbytheCompany.

(ii) Composition Ason31stMarch,2014,theCommitteecomprises

of two Directors, namely, Shri U.S. Bhartia,Chairman andManagingDirector and Shri R.C.Misra, Director and two senior officials of theCompany namely Shri Rakesh Bhartia, ChiefExecutiveOfficerandShriAnandSinghal,ChiefFinancialOfficer.

(iii) Attendance record of the Finance Committee TheCommitteemetseventimesduringtheyear.

The attendance record of the members at themeetingsisasfollows:


ShriU.S.Bhartia Chairman 7

ShriR.C.Misra Member 7

ShriRakeshBhartia Member 5

ShriAnandSinghal Member 7

e) Nomination and Remuneration Committee i) Terms of Reference In view of the changes prescribed under the

Companies Act 2013, the Appointment andRemuneration committee has been renamed

and reconstituted as “NOMINATION ANDREMUNERATION COMMITTEE”. Pursuant tothe provisions ofSection 178 of theCompaniesAct,2013andtherevisedclause49oftheListingagreement, the Nomination and RemunerationCommittee has an enhanced scope andincludes in addition to others the screening and recommendingtotheBoardthepersonswhoshallbeeligibletoconstitutetheBoardofDirectorsandto be appointed in the senior management oftheCompanyandfixationofremunerationoftheDirectors,KMPs,andotheremployeescomprisingsenior management of the company, theirperformanceevaluationandremovalthereof.


three non-executive independent Directorsnamely,ShriR.C.Misra,ShriAutarKrishnaandShriJagmohanN.Kejriwalandonenon-executivenon-independent Director namely, Shri PradipKumarKhaitan.

iii) Attendance record of the Appointment and Remuneration Committee.

The Committee met once during the year. Theattendancerecordofthemembersatthemeetingsisasfollows:Name of the Member Status No. of

Meetings Attended


ShriJagmohanN.Kejriwal

Member 1

ShriPradipKumarKhaitan

Member 1

ShriAutarKrishna Member 1

f) Compensation Committee for Employees Stock Option Scheme i) Terms of Reference The Compensation Committee has been

constituted to consider administration and superintendenceof theEmployeesStockOptionScheme(ESOP).


ChairmanandManagingDirectorShriU.S.Bhartiaand three non-executive Directors namely ShriPradipKumarKhaitan,ShriR.C.MisraandShriAutarKrishna.

iii) Meetings of Employees Stock Option Scheme Committee

NomeetingofEmployeesStockOptionScheme Committeehasbeenheldduringtheyear.



MANAGEMENTa) Management discussion and analysis Managementdiscussionandanalysisreportformspart

ofthisAnnualReport.

b)Disclosure on Risk Management The Company has further strengthened the Risk

ManagementSystem in theCompany.TheBoardofDirectors periodically reviews the Risk Assessmentandminimizingprocedurethereof.

SHAREHOLDERSa) Means of Communication Thequarterly,half-yearlyandannualFinancialResults

of the Company are sent to the Stock ExchangesimmediatelyaftertheyareapprovedbytheBoard.The

resultsarepublishedinaccordancewiththeguidelinesofStockExchangesandarepostedontheWeb-siteoftheCompany.

b) Investor Grievances As mentioned earlier, the Company has constituted

an Investors’ Grievance Committee for redressingshareholders and investors’ complaints. Shri LalitKumarSharma,CompanySecretary is theSecretarytotheCommitteeaswellasComplianceOfficer.

c) Share Transfers AllsharetransfersarehandledbyCompany’sRegistrar

and Share Transfer Agent M/s. MCS Limited, F-65,OkhlaIndustrialAreaPhase-INewDelhi110020aCategory–IRegistrarregisteredwithSEBI.

d) General Body Meetings DetailsofthelastthreeAnnualGeneralmeetingsareasunder:

Financial Year Date Time Venue2012-13 18.09.2013 12.30P.M. A-1,IndustrialArea,BazpurRoad,Kashipur,DisttUdhamSinghNagar,

Uttarakhand

2011-12 15.09.2012 12.30P.M. A-1,IndustrialArea,BazpurRoad,Kashipur,DisttUdhamSinghNagar,Uttarakhand

2010-11 27.09.2011 12.30P.M. A-1,IndustrialArea,BazpurRoad,Kashipur,DisttUdhamSinghNagar,Uttarakhand

SpecialResolutionsundersection81(1A)werepassedat the AGM(s) held on 27.09.2011, 15.09.2012 and18.09.2013.

e) Postal Ballot Duringtheyearended31stMarch,2014,theCompany

didnotconductanyPostalBallotresolution.

Additional shareholders informationa) Annual General Meeting Date :20.09.2014 Venue : A-1,IndustrialArea,BazpurRoad, Kashipur-244713,Distt.U.S.Nagar, Uttarakhand Time : 12.30P.M.b)Financial Calendar Financialyear:1st April to 31stMarch Forthefinancialyear2014-15,thetentativedatesfor

approvalofunauditedfinancial resultswillbeby14th August,2014 for thefirstquarter,by14thNovember,2014 for half-yearly, 14th February, 2015 for thirdquarterforUnaudited/AuditedResultsandbyMay15/May 30, 2015 for approval ofUnaudited 4thQuarter/AnnualAuditedResults(2014-15).

c) Book Closure TheRegisterofMembersandShareTransferBooksof

theCompanyshallremainclosedfrom10thSeptember,2014to20thSeptember,2014(Bothdaysinclusive)

d) Dividend Payment Date: 25.09.2014. Dividend is paid under four modes viz: NationalElectronicClearingServices(NECS) NationalElectronicFundTransfer(NEFT) DirectCredittoshareholders’accountbybank PhysicaldispatchofDividendWarrant

e) Listing at stock exchanges and stock codes ThenameoftheStockExchangesatwhichtheequity

shares are listed as on 31st March, 2014 and therespectivestockcodesareasunder:

Name of the Stock Exchange Stock Code No.BombayStockExchangeLtd.NationalStockExchangeofIndiaLtd.

500201Indiaglyco

Listing fee to the Bombay Stock Exchange Ltd. andNationalStockExchangeofIndiaLtd.forthefinancialyear ended 31stMarch,2014hasbeenpaid.

TheISINnumbersallottedtotheCompanyfordematofSharesareasunder:

NSDL-INE560A01015 CDSL-INE560A01015

f) Stock Data High/Low of market price of the Company’s equity

shares traded on the Bombay Stock Exchange Ltd.duringthefinancialyearended31stMarch,2014was



asfollows:

Month High Low SensexApr- 13 145.60 125.25 19,622.68

May-13 145.00 131.00 20,443.62

Jun- 13 136.00 103.25 19,860.19

Jul- 13 122.65 100.60 20,351.06

Aug- 13 107.00 84.75 19,569.20

Sep-13 109.35 85.50 20,739.69

Oct-13 100.50 86.00 21,205.44

Nov-13 103.40 84.35 21,321.53

Dec-13 110.00 88.50 21,483.74

Jan- 14 111.80 89.25 21,409.66

Feb-14 97.85 84.10 21,140.51

Mar-14 97.60 83.25 22,467.21

g) Performance of Company’s equity shares in comparison to BSE Sensex

h) Distribution of shareholding as on 31st March, 2014



i) Shares held in physical and dematerialised formMode of Holding %ageNSDL 30.18

CDSL 59.25

Physical 10.57

As on 31stMarch,2014,89.43%ofshareswereheldinDe-materialisedformand10.57%inphysical form.89.70%Non-PromotersholdingisinDe-materialisedform.

j) Outstanding GDR’s/ADR’s/Warrants/convertible instruments and their impact on equity

Nil

k) Plant Locations1. A-1,IndustrialArea,BazpurRoad,Kashipur,Distt.

UdhamSinghNagar,Uttarakhand.2. E-1,Sector-15,Gorakhpur IndustrialDevelopment

Area,Gorakhpur,UttarPradesh.3. PlotNo.2,3,4&5PharmaCity,Selaqui,Dehradun,

Uttarakhand 4. Block No. 229-230, Village Valthera, Dholka,

Ahmedabad-387810,Gujarat

l) Address for correspondence IndiaGlycolsLimited,PlotNo.2B,Sector-126,Noida-

201304,GautamBudhNagar,UttarPradesh Telephone :0120-3090100, Fax :0120-3090111 Website :www.indiaglycols.com E-Mail :[email protected]

m) Electronic Clearing Services (ECS) for payment of dividend

Shareholders can obtain ECS application form fromHeadOfficeatPlotNo.2B,Sector-126,Noida-201304GautamBudhNagar,UttarPradeshorfromRegistrarandShare Transfer Agent at F-65,Okhla IndustrialAreaPhase-INewDelhi110020.

n) Shares held in electronic form Shareholders holding shares in electronic form may

give instruction regarding bank details which theywish to incorporateon their dividendwarrant to theirdepository participants. As per the regulations ofNSDLandCDSLtheCompanyisobligedtoprintthebankdetailsonthedividendwarrants,asfurnishedbythesedepositoriestotheCompany.

o) Transfer of unpaid/unclaimed amounts to Investor Education and Protection Fund

Duringtheyearunderreview,theCompanytransferredunpaid/unclaimed dividend for ` 17.83 lacs andunclaimedFixed deposits for` 1.75 lacs to InvestorEducation and Protection Fund (IEAPF) pursuant toSection205CoftheCompaniesAct,1956.



AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

TO THE MEMBERS OF INDIA GLYCOLS LIMITED

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyIndiaGlycolsLimitedfortheyearendedon31stMarch,2014,asstipulatedinClause49oftheListingAgreementofthesaidCompanywithstockexchanges.The complianceof conditions ofCorporateGovernance is the responsibility of themanagement.Our examinationhasbeen limited toa reviewofproceduresand implementation thereof,adoptedby theCompany forensuring thecompliance of the conditions ofCorporateGovernance. It is neither an audit nor an expression of opinion on thefinancialstatementsoftheCompany.

Inouropinionand to thebestofour informationandaccording to theexplanationsgiven tous,wecertify that theCompanyhascompliedwith,inallmaterialrespect,theconditionsofCorporateGovernanceasstipulatedinClause49oftheabovementionedListingAgreement.

Westate,thatinrespectofinvestorgrievancesreceivedduringtheyearended31stMarch,2014,noinvestorgrievancesare unattended/pending for a period exceeding onemonth against theCompany as certified by theRegistrars &TransferAgentsoftheCompanyanddetailspresentedtotheInvestorsGrievanceCommitteeoftheCompany.

We furtherstate thatsuchcompliance isneitheranassuranceas to the futureviabilityof theCompanynorof theefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For LODHA & CO.CharteredAccountants

FirmRegistrationNo:301051E

(N.K.Lodha)Place:NewDelhi PartnerDate:04.08.2014 MembershipNo.85155

To the Members of India Glycols Limited

DECLARATION

I,U.S.Bhartia,ChairmanandManagingDirectorofIndiaGlycolsLimiteddoherebydeclarethattheCompanyhadreceived affirmation from all themembers of theBoard andSeniorManagement personnel stating compliance ofthecodeofconductfortheyear2013-14pursuanttotherequirementoftheClause49oftheListingAgreementasamended.

for India Glycols Limited

U.S. Bhartia

Chairman and Managing Director

Place:NOIDA,U.P.Date :22.05.2014



Independent Auditors’ ReportReport on the Financial StatementsWe have audited the accompanying financial statementsof INDIA GLYCOLS LIMITED (“the Company”), whichcomprise the Balance Sheet as at 31st March 2014 andalso the Statement of the Profit and Loss and the CashFlow Statement for the year then ended, and a summaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation of thesefinancialstatementsthatgiveatrueandthefairviewofthefinancial position, financial performance and cash flows ofthe company in accordance with the accounting principles generallyaccepted inIndia, includingAccountingStandardsnotifiedundertheCompaniesAct,1956(“theAct”)readwithGeneralCircular15/2013dated13thSeptember2013,issuedbytheMinistryofCorporateAffairs,inrespectofSection133oftheCompaniesAct,2013.Thisresponsibilityincludesthedesign, implementationandmaintenanceof internal controlrelevant to thepreparationandpresentationof thefinancialstatementsthatgiveatrueandfairviewandfreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s responsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatements based on our audit. We conducted our auditin accordance with the Standards on Auditing issued byInstituteofCharteredAccountantofIndia.Thosestandardsrequire that we comply with the ethical requirements andplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in thefinancial statements. The procedures selected depend onthe auditor’s judgment, including assessment of risks ofmaterialmisstatementof thefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsin order to design audit procedures that are appropriate in thecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessontheentity’sinternalcontrol.An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness ofthe accounting estimates made by the management, aswell as evaluating the overall presentation of the financialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.Basis for Qualified OpinionAttention is invited to:i. Note no. 34 (A) of financial statements regarding non-

provisionagainstinvestment,inter-corporatedepositandadvances in subsidiary company Shakumbari Sugar and AlliedIndustriesLimited(SSAIL)amountingto` 5,427.50 Lacs, ` 1,834.83 Lacs (including interest thereon) &` 8,375.82 Lacs respectively, where, in the opinion ofmanagement no provision is necessary considering the long term in nature, the intrinsic valueof assets ofsubsidiary company and for the reasons as stated in the saidnotes.FurthercompanyhavealsoextendedcorporateguaranteeonbehalfofSSAILagainstoutstandingamountofFinancialInstitutionandBanks(asstatedinthenoteno.27(A)(iii)).

ii. Note no 34 (B) regarding non provision against total

exposure of amounting ` 14,848.64 lacs includingInter-corporate deposit in a subsidiary, IGL FinanceLimited, where the management is confident about itsrecoverabilityforthereasonasstatedinsaidnote,andourinabilitytocommentthereon.

NetProfitfortheyear,investments,loans&advancesandreserve&surplusarewithoutconsideringtheabovewhichcannotbeascertainedorotherwiseforthereasonstatedinparas above.Qualified OpinionInouropinionandbesttoourinformationandaccordingtotheexplanationsgiventous,exceptforthepossibleeffectsof thematter described in the Basis forQualifiedOpinionparagraph, the financial statements, give the informationrequired by the Act in the manner so require and give a true and fair view in conformity with the accounting principlesgenerallyacceptedinIndia:a. inthecaseoftheBalanceSheet,ofthestateoftheaffairs

of the company as at 31st March 2014,b. incaseoftheStatementoftheProfitandLoss,oftheloss

for the year ended on that date, and c. incaseoftheCashFlowStatement,ofthecashflowsfor

the year ended on that date.Emphasis MatterAttentionisinvitedto:Note no. 45(b) with respect to provision made of specialdiscountonaccountofsuddenandsteepfall inpricesandqualityissues,wherenecessaryapprovalsarepending.Report on other legal and the regulatory requirements:1. As requiredby theCompanies (Auditor’sReport)Order,

2003 (“theOrder”) issuedby theCentralGovernmentofIndia in terms of sub-section (4A) of section 227 of theAct,wegive intheAnnexureastatementonthe,matterspecifiedintheparagraphs4and5oftheorder.

2. Asrequiredbysection227(3)oftheAct,wereportthat:a. wehaveobtainedalltheinformationandexplanations

which,tothebestofourknowledgeandbelief,werenecessaryforthepurposesofouraudit;

b. inouropinion,properbooksofaccount,as requiredby law, have been kept by the Company so far asappearsfromourexaminationofthosebooks;

c. the Balance Sheet, Statement of Profit & Loss andCashFlowStatementreferredtointhisreportareinagreementwiththebooksofaccount;

d. inouropinion,theBalanceSheet,StatementofProfit&LossandCashFlowStatement referred to in thisreportcomplywiththeAccountingStandards notifiedundertheCompaniesAct,1956(“theAct”)readwithGeneralCircular15/2013dated13thSeptember2013,issuedbytheMinistryofCorporateAffairs,inrespectofSection133oftheCompaniesAct,2013;

e. On the basis of the written representations receivedfromtheDirectorsand takenon recordsby theBoardofDirectors,wereportthatnoneofthedirectorsoftheCompany is disqualified as on 31st March 2014 frombeingappointedasaDirectoroftheCompanyintermsofclause(g)ofsub-section(1)ofsection274oftheAct.

For Lodha& Co.,CharteredAccountants


(N.K.Lodha)Date:22.05.2014 PartnerPlace:Noida,UP M.No.:-85155



AnnexuretotheAuditors’Report(Referredtoinparagraph(1)ofourReportofevendateofINDIA GLYCOLS LIMITEDfortheyearended31stMarch,2014)

i. (a) TheCompanyhasmaintained records in respectof fixed assets showing full particulars includingquantitativedetailsandsituationofitsfixedassets.

(b) As per information & explanation given to us,certainfixedassetshavebeenphysicallyverifiedbythemanagement.Asexplainedtousthereisregularprogrammeofphysicalverificationonceinevery threeyears, inphasedmanner,whichin our opinion is reasonable having regard tothe size of the company and the nature of itsfixedassets.Thediscrepanciesnoticedonsuchphysicalverificationwerenotmaterial.

(c) Aspertherecordsandinformation&explanationgiventous,fixedassetsdisposedoffduringtheyearwerenotsubstantial.

ii. (a) The inventory of the Company (except stocklying with the third parties and in transit) has beenphysically verifiedby themanagementatreasonableintervals.

(b) In our opinion and according to information& explanation given to us, the procedures ofphysical verification of inventory followed bythemanagementaregenerally reasonableandadequateinrelationtothesizeoftheCompanyandnatureofitsbusiness.

(c) In our opinion and according to information& explanation given to us, the Companyis generally maintaining proper records ofinventory. The discrepancies noticed on suchphysicalverificationofinventoryascomparedtobookrecordswerenotmaterial.

iii. (a) As per the information and records madeavailable to us, the Company has not grantedduring the year any loan secured or unsecured tocompanies,firmsorotherpartieslistedintheregister maintained under section 301 of theCompaniesAct,1956.Accordinglytheprovisionsof clause 4 (iii) (b) to (d) of the order are notapplicabletotheCompany.

(b) The company has taken unsecured loan fromseven companies covered in the registermaintainedundersection301oftheCompaniesAct,1956.Themaximumamountinvolvedduringtheyearandtheyearendbalanceofsuchloansareaggregateof` 7,977.24Lacsand` 6,910.23Lacsrespectively.

(c) Inouropinionandaccordingtoinformationandexplanationsgiventous,therateofinterestandother terms and conditions onwhich aforesaidloan has been taken are not, prima facie,prejudicialtotheinterestofthecompany.

(d) The company is regular in repaying the principal and interest amounts whenever the same arestipulated.

iv. In our opinion and according to the informationand explanations given to us, having regard to theexplanation that some of the items purchased areof special nature and for which suitable alternativesources do not exist for obtaining comparable

quotation or where user department has shownspecificpreference,where,asexplained,ratesweredeterminedconsideringthequality,volume,natureoftheitemsandmarketconditionsprevailingatthattimein certain cases, there is an internal control systemwhichneeds to be further strengthened tobemadethesamecommensuratewiththesizeoftheCompanyandnatureof its business for the certainpurchasesofInventory&fixedassets,andforthesaleofgoodsandservices{thistobereadwithnoteno.37&43(a)offinancialstatement}.Basedontheauditprocedureperformed and information & explanations providedby themanagement, during thecourseof ouraudit,wehavenotobservedanycontinuingfailuretocorrectmajorweaknessesininternalcontrolsystem.

v. According to the information and explanationsprovidedbythemanagementandbasedontheauditprocedureperformed,weareoftheopinionthattheparticularsofthecontractsorarrangementsreferredto in section 301 of the Act have been enteredin the register maintained under that section and havingregardtoourcommentinpara(iv)above,thetransactionmadeinpursuanceofsuchcontractsorarrangements (exceeding the value of ` 5 Lacs inrespectofeachpartyduringthefinancialyear)havebeenmadeatpriceswhicharegenerallyreasonablehavingregard to theprevailingmarketpricesat therelevanttime.

vi. Inouropinionandaccording to the informationandexplanationsgiventous,theCompanyhascompliedwiththedirectiveissuedbytheReserveBankofIndiaandtheprovisionsofSection58Aand58AAoftheAct or any other relevant provisions of theAct andthe rules framed thereunderwith regard todepositacceptedfromthepublic.WehavebeeninformedthatnoorderhasbeenpassedbythecompanyLawBoardorNationalCompanyLawTribunalorReserveBankofIndiaoranyCourtorothertribunalinthisregard.

vii. The Company has an internal audit systemcommensurate with the size of the Company andnatureofitsbusiness.

viii. We have broadly reviewed the books of accountmaintained by the Company pursuant to the rulesmadebytheCentralGovernmentforthemaintenanceofcostrecordsunderSection209(1)(d)oftheActinrespectoftheCompany’sproductstowhichthesaidrulesaremadeapplicableandareoftheopinionthatprimafacie,theprescribedrecordshavebeenmadeand maintained. We have, however, not made adetailedexaminationofthesaidrecordswithaviewtodeterminewhethertheyareaccurateandcomplete.

ix. (a) According to the records of the Company, theCompany is regular in depositing undisputedstatutoryduesincludingProvidentFund,InvestorEducation and Protection Fund, Employees’StateInsurance,IncomeTax,SalesTax,WealthTax,ServiceTax,CustomsDuty,ExciseDuty,Cessandothermaterialstatutorydueswiththeappropriateauthorities to theextentapplicable.According to the information and explanations



given to us, there are no undisputed amountspayableinrespectofstatutorydueswhichhaveremainedoutstandingasat31stMarch,2014foraperiodofmorethansixmonths.

(b) According to the records and information andexplanations given to us, there are no duesin respect of IncomeTax andWealthTax that

have not been deposited with the appropriateauthoritiesonaccountofanydisputeandduesinrespectofCustomDuty,ServiceTax,ExciseDuty, Sales tax and Cess that have not beendeposited with appropriate authority on account of dispute and the forumwhere the dispute ispendingaregivenbelow:-

Nature of Statue Nature of dues Amount (` in lacs)

Period Forum

CustomAct Customduty 11.42 1992-93 HighCourt–Uttaranchal Customduty 193.05 2004-05,2009-10 Asstt.Commissionerofcustom DutyDrawback 15.86 2006-07 JointSecretary,DepartmentofRevenue CustomDuty 598.17 2004-05 CommissionerCustoms(Appeals)FinanceAct1994 ServiceTax 36.31 2004-05to2007-08 CESTAT ServiceTax 3.29 2004-08 AssistantCommissioner-HaldwaniCentralExciseAct CenvatCredit 20.54 2005-06to2009-10 CESTAT Exciseduty 69.99 2007-08 CESTAT Exciseduty 6,646.11 1996-97,2005-06to2013-14 Asstt.CommissionerHaldwani Exciseduty 4,183.63 2010-11 Asstt.CommissionerHaldwani Exciseduty 90.62 2006-07to2009-10 AllahabadHighCourt Exciseduty 1.87 2009-10to2010-11 JointSecretary,GOI,NewDelhi Exciseduty 42.92 2010-11 to 2013-14 CommissionerAppealAllahabad

Exciseduty 7,438.36 2007-08to2013-14 CommissionerAllahabadExciseduty 918.39 2007-08to2013-14 Asstt.CommissionerGorakhpur

UPVATAct SalesTax 13.52 2008-09,2009-10,2011-12&2012-13

AdditionalCommissioner

SalesTax 10.50 2007-08 AllahabadHighCourtx. TheCompanydoesnothaveaccumulatedlossesat

theendof financial year.Further companyhasnotincurred cash loss during the current financial yearandnotintheimmediatelyprecedingfinancialyear.However,consideringtheexceptionalitem(noteno.45)companyhasincurredcashlossduringtheyear.

xi. Inouropinion,basedonauditproceduresandaccordingto the information and explanations given to us, theCompany has not defaulted in repayment of dues tofinancialinstitution,banksordebentureholders.

xii. According to the information and explanation givento us and based on the documents and recordsproducedtous,theCompanyhasnotgrantedloansand advances on the basis of security by way ofpledgeofshares,debentureandothersecurities.

xiii. TheCompany is not a chit fund or a nidhi/mutualbenefitfund/societyandtherefore,theprovisionsofclause4(xiii)oftheOrderarenotapplicable.

xiv. Accordingtotheinformationandexplanationsgiventous,theCompanyisnotdealingortradinginshares,securities,debenturesandotherinvestments.

xv. Accordingtotheinformationandexplanationsgiventous,theCompanyhasgivencorporateguaranteesto banks for Loans taken by Shakumbari Sugar& Allied Industries Limited (‘SSAIL’ a SubsidiaryCompanywhosenetworthhavebeen fullyeroded)foramounting to`12,428.52 lacsasstated innoteno. 27(A)(iii) of the financial statements, the termsand conditions on which the Company has givenguarantees for loans taken by SSAIL from banksarenot,primafacie,asexplained,prejudicial to theinterest of the Company since the same is/are onaccountofcommercialexpediency.Asexplainedtous, the Company has not given any guarantee forloanstakenbyothersfromfinancialinstitution.

xvi. Accordingtotheinformationandexplanationsgiventous,termloanshavebeenappliedforthepurposesforwhichtheywereobtainedexceptpendingutilization,havebeentemporarilyparkedinthecurrentassets/depositswithbanks.

xvii.On thebasisof informationandexplanationsgivento us and on overall examination of the financialstatementsof theCompany, funds raisedonshort-termbasishave,primafacienotbeenusedforlong-terminvestments.

xviii.Accordingtotheinformationandexplanationgiventous,thecompanyhasnotmadepreferentialallotmentof shares to parties and companies covered in theregister maintained under section 301 of the Actduringtheyear.

xix. On the basis of record made available to us andaccordingtotheinformationandexplanationsgivento us, the company does not have outstandingdebenturesduringtheyearandalsoatyearend.

xx. TheCompanyhasnot raisedanymoney throughapublicissueduringtheyear.

xxi. Duringthecourseofourexaminationofthebooksandrecordsof theCompany,carriedout inaccordancewith generally accepted auditing practices in India and according to the information and explanationsprovidedbythemanagement,nomaterialfraudonorbytheCompanyhasbeennoticedorreportedduringthecourseoftheaudit.

For Lodha& Co.,CharteredAccountants


(N.K.Lodha)Date :22.05.2014 PartnerPlace:Noida,UP M.No.:-85155



Balance Sheet as at 31st March, 2014

Schedule As at As at 31.03.2014 31.03.2013

EQUITY AND LIABILITIESShareholders’ FundsShareCapital 2 3,096.15 3,096.15ReservesandSurplus 3 47,461.38 59,807.18 50,557.53 62,903.33Non-current LiabilitiesLong-termborrowings 4 66,222.04 65,771.61Deferredtaxliabilities(Net) 5 10,654.44 15,679.23OtherLong-termliabilities 6 534.54 495.41Long-termprovisions 7 349.03 300.91 77,760.05 82,247.16Current LiabilitiesShort-termborrowings 8 105,243.41 78,786.71Tradepayables 47,035.10 45,927.81Othercurrentliabilities 9 39,614.57 25,366.46Short-termprovisions 7 648.18 1,157.65 192,541.26 151,238.63TOTAL 320,858.84 296,389.12ASSETSNon-current AssetsFixedAssets Tangibleassets 10 118,560.81 108,796.97 Intangibleassets 10 229.87 376.53 Capitalwork-in-progress 12,232.28 19,351.34Non-currentinvestments 11 5,694.52 5,694.52Long-termloansandadvances 12 5,846.79 6,355.02Othernon-currentassets 13 229.96 175.52 142,794.23 140,749.90Current AssetsCurrentInvestments 11 9.80 17,192.21Inventories 14 54,719.22 46,121.13Tradereceivables 15 44,175.68 29,865.27CashandBankbalances 16 15,833.56 12,167.44Short-termloansandadvances 17 63,086.63 50,016.85Othercurrentassets 18 239.72 276.32 178,064.61 155,639.22TOTAL 320,858.84 296,389.12

Summaryofsignificantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E

N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerM.No.85155Place :Noida,UP Lalit Kumar Sharma Dated:22ndMay,2014 Company Secretary

(` in lacs)



Summaryofsignificantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E


StatementofProfit&LossfortheyearendedMarch31,2014

NoteNo. 2013-14 2012-13

Revenuefromoperations 19 288,500.04 333,383.19

Otherincome 20 2,894.19 1,278.27

Total Revenue 291,394.23 334,661.46

Expenses:

Costofmaterialsconsumed 21 154,326.92 163,162.02

PurchaseofStock-in-Trade 22 51,030.79 56,172.71

Changeininventoriesoffinishedgoods,work-in-progress 23 (5,654.09) 34.92

andStock-in-trade

Employeebenefitexpenses 24 7,951.56 8,124.08

Financecosts 25 13,353.20 13,272.46

Depreciationandamortizationexpenses 10 8,284.47 8,243.15

Otherexpenses 26 59,908.03 69,152.18

Total Expenses 289,200.88 318,161.52

Profit/ (Loss) before exceptional items and tax 2,193.35 16,499.94

ExceptionalItems(Net) 45 19,172.62 -

Profit/ (Loss) before tax (16,979.27) 16,499.94

TaxExpense:

-CurrentTax - 3,300.48

-DeferredtaxCharged/(Credit) (5,024.79) 4,386.01

-Taxforearlieryears - 20.19

-MinimumAlternateTaxCreditentitlement - (3,300.48)

Profit/ (Loss) for the period (11,954.48) 12,093.74

Earning per Equity share basic/ diluted (38.61) 41.10

(` in lacs)



Cash Flow Statement for the year ended 31st March, 2014 2013-14 2012-13

A Cash Flow from Operating Activities NetProfit/(Loss)BeforeTax (16,979.27) 16,499.94 AdjustmentsFor: Depreciation 8,284.47 8,243.15 (Profit)/LossonSaleofAssets (429.89) 90.34 UnrealisedForeignExchangeFluctuation(Gain)/Loss (1,376.46) 73.60 AmortisationofForeignCurrencyMonetaryItemTranslationDifference 1,832.88 2,009.64 (Profit)/LossonSaleofCurrentInvestments (961.27) (82.41) ReversalofProvisionforDiminutioninValueofCurrentInvestments - (3.17) ProvisionforDiminutioninValueofCurrentInvestment 0.20 - BadDebtsW/Off&ProvisionforDoubtfulDebts&Advances 8,406.84 5.76 ProvisionNoLongerRequiredWrittenBack (49.51) (27.10) FinanceCosts 14,120.59 15,332.96 Interest/DividendIncome (2,146.86) 27,680.99 (3,212.80) 22,429.97 Operating Profit/ (Loss) before Working Capital Changes 10,701.72 38,929.91 AdjustmentsFor: (Increase)/DecreaseinTrade&OtherReceivables (21,683.67) 4,736.96 (Increase)/DecreaseinInventories (8,598.09) 15,793.45 Increase/(Decrease)inTrade&OtherPayables 6,273.06 (24,008.70) 22,312.63 42,843.04 Cash Generated from / (Used in) Operations (13,306.98) 81,772.95 IncomeTaxPaid(Net) (454.30) (4,884.98) Net Cash flow from / (Used in) Operating Activities (13,761.28) 76,887.97B Cash Flow from Investing Activities PurchaseofFixedAssets (10,386.16) (16,275.93) SaleofFixedAssets 1,543.84 769.61 Interest/Dividendreceived 1,940.17 3,865.93 ICDsgiven (22,367.32) (6,358.00) ICDsreceivedback 11,299.13 9,327.55 Investmentsinsharesofsubsidiaries/jointventure - (50.00) Saleofcurrentinvestments 18,143.48 1,583.08 Purchaseofcurrentinvestment - (17,100.00) Net Cash flow from / (Used in) Investing Activities 173.14 (24,237.76)C Cash Flow from Financing Activities ProceedsfromGovtsubsidy - 5.00 ProceedsfromIssueofShareCapital - 4,266.26 ProceedsfromBorrowings 107,322.86 88,436.51 RepaymentofBorrowings (79,623.03) (125,852.84) FinanceCosts (16,141.31) (17,248.73) DividendsPaid(IncludingCorporateDividendTax) (935.55) (2,176.32) Net Cash flow from / (Used in) Financing Activities 10,622.97 (52,570.12) Net Increase/(Decrease) in Cash & Cash Equivalents [A+B+C] (2,965.17) 80.09 OpeningCash&CashEquivalent(refernote16) 5,052.99 4,972.90 ClosingCash&CashEquivalent(refernote16) 2,087.82 5,052.99

Theaccompanyingnotesareanintegralpartofthefinancialstatements.

(` in lacs)

AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E




1. ACCOUNTING POLICIES

A. REVENUE RECOGNITION(a) Revenue from the sale of goods is recognized at the time of transfer of substantial risks and reward of

ownershiptothebuyersunderthetermofcontract,usuallyonthedeliveryofthegoods.(b) Revenue is recognized based on the nature of the activity to the extent it is probable that the economic

benefitwillflowtothecompanyandtherevenuecanbereliablymeasuredwiththereasonablecertaintyofitsrecovery.

(c) RevenueinrespectofExportbenefitsarerecognizedonpostexportbasisattherateatwhichtheentitlementaccruesandisincludedintheturnover.

B. FIXED ASSETS AND DEPRECIATION(a) (i) Alltangiblefixedassetsarestatedattheirhistoricalcostlessaccumulateddepreciation.Depreciation

onfixedassets,exceptonleaseholdland,EODerivativeunitisprovidedonstraightlinemethodattheratesandinthemannerprovidedinScheduleXIVtotheCompaniesAct,1956.DepreciationonfixedassetsofEODerivativeunit isprovidedonwrittendownvaluemethod(WDV)at theratesand in themannerprovidedinScheduleXIVtotheCompaniesAct,1956.Depreciationonadditions/disposals isprovidedwithreferencetothemonthofaddition/disposal.

(ii) CertainPlantandMachineryconsideredascontinuousprocessplantbasedontechnicalevaluation. (iii)Leaseholdlandisamortisedovertheperiodoflease.(b) Intangibleassets:Computersoftwareareaccountedforat theircostofacquisitionandamortisedoverthe

estimatedusefullifei.e.notexceedingsixyears.C. EXPENDITURE DURING CONSTRUCTION Expenditureduringconstructionperiodisbeingincludedundercapitalwork-inprogressandthesameisallocated

tofixedassetsoncompletionofinstallation/construction.

D. INVESTMENTS Longterminvestmentsarestatedatcost.Whenthereisadeclineotherthantemporaryintheirvalue,thecarrying

amountisreducedonindividualinvestmentbasisandischargedtotheStatementofProfit&Loss. CurrentInvestmentsarevaluedatlowerofcostorfairvalue.

E. VALUATION OF INVENTORIES Inventoriesarevalued‘atlowerofcostornetrealisablevalue’exceptstockofresidualproductsandscrapwhich

arevaluedatnetrealisablevalue.Thecostiscomputedontheweightedaveragebasis.Incaseoffinishedgoodsandstockinprocess,costisdeterminedbyconsideringmaterial,labour,relatedoverheadsanddutiesthereon.

F. FOREIGN EXCHANGE & DERIVATIVE TRANSACTIONS (a) Foreign currency transactions are recorded at the rate of exchange prevailing at the date of transaction.

ForeignCurrencyAssetsandLiabilitiesareconvertedattheexchangeratesprevailingattheyearendexceptthosecoveredunderfirmcommitmentwhicharestatedatcontractedrate.ExchangedifferenceschargedtotheStatementofProfit&Loss,exceptarisingonaccountofsuchconversionrelatedto(i)thepurchaseoffixedassetsisadjustedtherewith,and(ii)otherlongtermmonetaryitemsisadjustedinthe“ForeignCurrencyMonetaryItemTranslationDifference”.

(b) Transactions covered by derivative contract are adjusted with variations, if any, and are recognised onreinstatement and settlement, except for gains, that are recognised only on settlement. The premiumonderivativecontractisexpensedoutoverthetermsofcontract.

G. EMPLOYEES BENEFITS (a) Defined Contribution Plan: Employeebenefits intheformofProvidentFund(withGovernmentAuthorities)areconsideredasdefined

contributionplanandthecontributionsarechargedtotheStatementofProfit&Lossoftheyearwhenthecontributionstotherespectivefundsaredue.

(b) Defined Benefit Plan: Retirementbenefits in theformofGratuityandLongtermcompensated leavesareconsideredasdefined

benefitobligationsandareprovidedforonthebasisofanactuarialvaluation,usingtheprojectedunitcreditmethod,asatthedateoftheBalanceSheet.

Actuarialgain/losses,ifany,areimmediatelyrecognisedintheStatementofProfit&Loss.

(c) Othershorttermabsencesareprovidedbasedonpastexperienceofleaveavailed.

Notes to the Accounts



H. GOVERNMENT GRANTS GrantsinthenatureofProjectCapitalSubsidyarecreditedtoCapitalReserves.OtherGovernmentgrantsare

deductedfromtherelatedexpenses.

I. BORROWING COST Interest and other costs in connectionwith the borrowing of funds are capitalised up to the date when such

qualifyingassetsarereadyforitsintendeduseandotherborrowingcostsarechargedtoStatementofProfit&Loss.Ancillarycostincurredinconnectionwiththeborrowingsareamortisedoverthetermofloan.

J. PROVISION FOR CURRENT TAX AND DEFERRED TAX Provisionforcurrenttaxhasbeenmadeonthebasisofestimatedtaxableincomecomputedinaccordancewith

theprovisionsofIncomeTaxAct,1961.

DeferredTax resulting fromall timingdifferencesbetweenbookprofitandprofitasper IncomeTaxAct,1961isaccountedfor,attheenacted/substantiallyenactedrateofTax,totheextentthatthetimingdifferencesareexpectedtocrystallise.Deferredtaxassetsarerecognisedonlytotheextentthatthereisareasonable/virtualcertainty that sufficient future taxable profits will be available against which such deferred tax assets can berealised.

K. IMPAIRMENT Where the recoverable amount of fixed assets is lower than its carrying amount, a provision ismade for the

impairment loss.Post impairment, depreciation isprovidedon the revisedcarryingvalueof theassetover itsremainingusefullife.

L. USE OF ESTIMATES AND ASSUMPTIONS Thepresentationoffinancialstatementsrequiresestimatesandassumptionstobemadethataffectthereported

amountofassetsandliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultandtheestimatesarerecognisedintheperiodinwhichtheresultsareknown/materialised.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involvingsubstantial degreeofestimation inmeasurementare recognisedwhen there isapresent

obligation as a result of past events and it is probable that therewill be an outflow of resources.Contingentliabilitiesarenotrecognizedbutaredisclosedinthenotes.Contingentassetsareneitherrecognisednordisclosedinthefinancialstatements.

2. SHARE CAPITAL

( ìnLacs),exceptasotherwisestated

Particulars As at As at 31.03.2014 31.03.2013

Authorised :

45,000,000(PreviousYear45,000,000)EquitySharesof` 10/-each 4,500.00 4,500.00

4,500.00 4,500.00

Issued, Subscribed and paid up : 30,961,500(PreviousYear30,961,500)EquityShares 3,096.15 3,096.15of`10/-eachfullypaidup

3,096.15 3,096.15

a) Terms/rights attached to equity shares: TheCompanyhasonlyoneclassofsharesreferredtoasequityshareshavingaparvalueof` 10/-pershare.

Eachholderofequitysharesisentitledtoonevotepershare. IntheeventofliquidationoftheCompany,theholdersofequityshareswillbeentitledtoreceiveremainingassets

oftheCompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders.




b) Details of shareholders holding more than 5% shares in the company

NameofShareholder 31.03.2014 31.03.2013 No’s No’s

KashipurHoldingsLimited 10,287,406 9,869,303

SajaniDeviBhartia 2,100,249 2,100,249

c) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars 31.03.2014 31.03.2013 No’s No’s

Sharesoutstandingasatthebeginningoftheyear 30,961,500 27,882,500

Additionsduringtheyear - 3,079,000

Deletionduringtheyear - -

Sharesoutstandingasattheendoftheyear 30,961,500 30,961,500

d) Inlast5yearstherewasnoBonusIssue,buybackand/orissueofsharesotherforcashconsideration.

3. RESERVES AND SURPLUS

( ìnLacs)

Asat Additions Deductions As at 01.04.2013 31.03.2014

CapitalReserve 463.25 - - 463.25

GeneralReserve 11,184.00 - - 11,184.00

SecurityPremium(Refernote29) 3,958.36 - - 3,958.36

ReserveforContingencies 200.00 - - 200.00

SurplusinStatementofProfit&Loss[Referfootnote(a)] 46,248.19 - 12,316.72 33,931.47

Sub Total (a) 62,053.80 - 12,316.72 49,737.08

ForeignCurrencyMonetaryItemTranslationDifference(DebitBalance) (2,246.62) (1,861.96) (1,832.88) (2,275.70)

Sub Total (b) (2,246.62) (1,861.96) (1,832.88) (2,275.70)

Total (a) + (b) 59,807.18 (1,861.96) 10,483.84 47,461.38

Previousyear 45,369.85 15,800.93 1,363.60 59,807.18

(a) Detail of Surplus in the Statement of Profit & Loss March 31, 2014 March31,2013

Openingbalance 46,248.19 37,527.69

Add:NetProfit/(Loss)aftertaxtransferredfrom

StatementofProfit&Loss (11,954.48) 12,093.74

34,293.71 49,621.43

Less:Appropriations

ProposedDividend* 309.62 619.23

InterimDividend* - 1,238.46

CorporateDividendTax 52.62 306.15

Transfertogeneralreserve - 1,209.40

Net Surplus in the Statement of Profit & Loss 33,931.47 46,248.19

33,931.47 46,248.19 *TheBoardofDirectors,proposedafinaldividendof`1(Previousyear`2)perequityshare.TheBoardofDirectors,duringtheyear,hasalsodeclaredandpaidinterimdividendofNil(PreviousYear`4)perequityshare.ThetotaldividendappropriationfortheyearendedMarch31,2014amountedto` 362.24Lacs(PreviousYear`2,163.84Lacs)includingcorporatedividendtaxof`52.62Lacs(PreviousYear`306.15Lacs).




4. LONG TERM BORROWINGS

( ìnLacs)

Non-CurrentPortion CurrentMaturities

As at As at As at As at 31.03.2014 31.03.2013 31.03.2014 31.03.2013

SECURED LOANS

Rupee Term Loans

fromBanks 36,940.34 43,167.74 17,810.32 14,175.37

otherthanBanks 608.75 464.46 110.64 31.06

ForeignCurrencyTermLoansfromBanks 21,762.71 14,045.67 3,282.31 5,122.09

59,311.80 57,677.87 21,203.27 19,328.52

UNSECURED LOANS

Loanfromrelatedparties(BodyCorporates) 6,910.24 8,093.74 - -

6,910.24 8,093.74 - -

Less:Amountdisclosedunderthehead

“OtherCurrentLiabilities”(NoteNo.9) 21,203.27 19,328.52

66,222.04 65,771.61 - - Notes: 1 TheTerm Loans inter-se, are secured / to be secured bymortgage of all immovable properties of theCompany both present and future and

hypothecationofallmovablepropertiesoftheCompany(saveandexceptbookdebts)includingmovablemachinery,machineryspares,toolsandaccessories,bothpresentandfuturesubjecttopriorchargescreatedand/ortobecreatedinfavourofthebankersoftheCompanyonstocks,bookdebtsandotherspecifiedmovablepropertiesforworkingcapitalrequirements/BuyersCredit.

2 RupeeTermLoansincludesloansfromBanksof`32.13Lacs(PreviousYear`56.86Lacs)andloansfromothersof`10.64Lacs(PreviousYear` 45.52Lacs)securedbyhypothecationofMotorVehiclespurchasedthereunderwhichisrepayableondifferentdates.Further,RupeeTermLoansfromothersincludes`708.75Lacs(PreviousYear`450.00Lacs)securedagainstbankguarantee.

3 TermLoanfrombankof`2,500.00Lacs(PreviousYear`5,000.00Lacs),isrepayablein4equalquarterlyinstallments.4 TermLoanfrombankof`4,978.47Lacs(PreviousYear`4,978.47lacs),isrepayablein11equalquarterlyinstallmentsof`417.00Lacsand1

installmentof`391.47lacscommencingfromSeptember2014.5 TermLoanfrombankof`10,000.00Lacs(PreviousYear`7,500.00Lacs),isrepayablein12equalquarterlyinstallmentscommencingfromApril2015.6 TermLoanfrombankof`2,499.60Lacs(PreviousYear`2,500.00Lacs),isrepayablein12equalquarterlyinstallmentscommencingfromMay2015.7 TermLoanfrombankof`2,915.00Lacs(PreviousYear`4,583.00Lacs),isrepayablein6quarterlyinstallments(4installmentsof`417.00Lacs

eachandremaining2installmentsof`623.50Lacseach).8 TermLoanfrombankof` 1,637.28Lacs(PreviousYear`3,329.86Lacs)isrepayablein4equalquarterlyinstallments.ItincludesForeignCurrency

Loanof`898.80Lacs(USD15.00Lacs)(PreviousYear`1,656.46Lacs,USD30.50Lacs).9 TermLoanfrombankof`1,458.33Lacs(PreviousYear`2,291.67Lacs),isrepayablein7equalquarterlyinstallments.10 TermLoanfrombankof`3,093.75Lacs(PreviousYear`4,218.75Lacs),isrepayablein11equalquarterlyinstallments.11 TermLoanfrombankof`2,380.00Lacs(PreviousYear`2,809.00lacs),isrepayablein66equalmonthlyinstallmentsof`35.75Lacseachand

remaining1installmentsof` 20.50Lacs.12 TermLoanfrombankof`2,187.50Lacs(PreviousYear`2,625.00Lacs),isrepayablein10equalquarterlyinstallments.13 TermLoanfrombankof`1,875.00Lacs(PreviousYear`2,500.00Lacs),isrepayablein6equalquarterlyinstallments.14 TermLoanfrombankof`2,233.46Lacs(PreviousYear`2,436.50Lacs),isrepayablein11equalquarterlyinstallments.15 TermLoanfrombankof`2,500.00Lacs(PreviousYear`5,000.00Lacs),isrepayablein4equalquarterlyinstallments.16 TermLoanfrombankof`3,432.95Lacs(PreviousYear`3,982.96Lacs),isrepayablein12equalquarterlyinstallmentsof`275.00Lacseachand

remaining1installmentsfor`132.95Lacs.17 TermLoanfrombankof`4,375.00Lacs(PreviousYear`5,000.00Lacs),isrepayablein7equalquarterlyinstallments.18 TermLoanfrombankof`2,551.00Lacs(PreviousYearNil),isrepayablein12equalquarterlyinstallmentscommencingfromJuly2015.19 TermLoanfrombankof`5,000.00Lacs(PreviousYearNil),isrepayablein16equalquarterlyinstallmentscommencingfromOctober2014.20 TermLoanfrombankofNil(PreviousYear` 187.50Lacs).21 TermLoanfrombankof` 3,761.38Lacs(USD62.77Lacs)(PreviousYear`4,924.43Lacs,USD90.67Lacs),isrepayablein10equalquarterly

installments.22 TermLoan frombankof`868.30Lacs(USD14.49Lacs), (PreviousYear`1,784.61Lacs,USD32.86Lacs), is repayable in3 installmentsof

` 250.00Lacseachandremaining1installmentsfor`118.30Lacs.23 TermLoanfrombankof`9,315.15Lacs(USD155.46Lacs)(PreviousYear` 10,802.26Lacs,USD198.90Lacs), isrepayable in10monthly

installments(3equalmonthlyinstallmentsof`583.33Lacs,3equalmonthlyinstallmentsof`833.33Lacs,3equalmonthlyinstallmentsof`856.67Lacsandbalanceinlastinstallment).

24 TermLoan frombankof` 10,201.38Lacs (USD170.25Lacs) (PreviousYearNil), is repayable in 37monthly installments (33equalmonthlyinstallmentsof`271.67Lacs,3equalmonthlyinstallmentsof`345.00Lacsandbalanceinlastinstallment)fromApril2015.

25 TermLoanfromDBTBihorama`450.00Lacs(PreviousYear` 450.00Lacs)isrepayablein9equalhalfyearlyinstallment.26 TermLoanfromDBTBihorama`258.75Lacs(PreviousYearNil)isrepayablein10equalhalfyearlyinstallmentaftercompletionoftheproject.27 Loanfromrelatedpartiesof`6,910.24Lacs(PreviousYear` 8,093.74Lacs)ispayableafteraperiodof3yearsfromtherespectivedateofloans.




5. DEFERRED TAX LIABILITIES (NET)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

PursuanttotheAccountingStandardon“AccountingfortaxesonIncome”(AS-22)deferredtaxliability/assetsareas:

Deferred Tax Assets :-

AmountcoveredU/s43B 236.95 303.97

Provisionfordoubtfuldebts/advances 2,872.99 28.68

UnabsorbedDepreciation 4,149.00 -

BusinessLoss 496.85 -

Others 209.94 91.73

Gross Deferred tax Assets 7,965.73 424.38

Deferred Tax Liabilities :-

Accelerateddepreciation 17,510.05 15,042.88

Others 1,110.12 1,060.73

Gross Deferred tax Liability 18,620.17 16,103.61

Net Deferred Tax Liability 10,654.44 15,679.23

6. OTHER LONG TERM LIABILITIES

( ìnLacs)

As at As at 31.03.2014 31.03.2013

Securitydeposits-RealEstate 534.54 495.41 534.54 495.41

7. PROVISIONS

( ìnLacs)

Long-Term Short-Term

As at As at As at As at 31.03.2014 31.03.2013 31.03.2014 31.03.2013Provision for employee benefitsProvisionforGratuity - - - - Provisionforemployeebenefits - - - -ProvisionforGratuity - - 127.12 285.93ProvisionforLeaveEncashment 349.03 300.91 149.71 138.59 349.03 300.91 276.83 424.52Others: Proposedequitydividend - - 309.62 619.23Provisionfortaxonproposedequitydividend - - 52.62 105.24ProvisionforFringeBenefitTax(Netofadvancetax`38.65Lacs,PreviousYear`38.65Lacs) - - 0.26 0.26ProvisionforWealthTax - - 8.85 8.40 - - 371.35 733.13 349.03 300.91 648.18 1,157.65




8. SHORT TERM BORROWINGS

( ìnLacs)

As at As at 31.03.2014 31.03.2013

SECURED LOANS

LoansrepayableondemandfromBanks:

BuyersImportCredit* 31,653.31 23,247.35

WorkingCapitalLoans* 69,778.24 48,050.74

101,431.55 71,298.09

UNSECURED LOANS

ShortTermLoansfromBanks 3,811.86 7,488.62

3,811.86 7,488.62

105,243.41 78,786.71

*WorkingCapitalLoansfromBanksaresecured/tobesecuredbywayofhypothecationofbookdebtsandstocksincluding in-transit and other specifiedmovable properties and second charge on all immovable properties of theCompany.BuyersCreditfacilityissecuredagainstnon-fundbasedfacilitysanctionedtotheCompany.

FurtherPackingcreditfacilityof`1,570.00Lacs(PreviousYearNil)(includedinworkingcapitalloans)arespecificallysecuredbypledgeofdeposit.

9. OTHER CURRENT LIABILITIES

( ìnLacs)

As at As at 31.03.2014 31.03.2013

Currentmaturitiesoflongtermborrowings(NoteNo4) 21,203.27 19,328.52

Interestaccruedbutnotdueonborrowings 190.51 288.07

Duties,taxesandotherstatutorydues 1,723.75 1,481.94

CapitalPayables 1,520.59 1,996.24

AdvancefromCustomers 4,058.27 434.15

Retention money 245.58 372.29

Expensespayable(IncludingMTMonderivativecontracts) 1,534.98 537.57

OtherPayables(refernote45(b)) 9,010.64 586.24

Investoreducation&protectionfundshallbecreditedbythefollowingamountswhendue:

(i)UnclaimedDividends 121.29 332.36

(ii) Unclaimed matured deposits 4.16 6.86

(iii)Unclaimedinterestonabove(ii) 1.53 2.22

39,614.57 25,366.46




10. Fixed Assets

( ìnLacs)

Description Gross Carrying Amount Depreciation/ Amortization Net Carrying Amount

Asat Additions* Sales/ As at Asat Forthe Sales/ As at As at As at

01.04.2013 Other 31.03.2014 01.04.2013 year Other 31.03.2014 31.03.2014 31.03.2013

Adjust- Adjust-

ments ments

Tangible assets

FreeholdLand 1,873.79 94.28 930.80 1,037.27 - - - - 1,037.27 1,873.79

LeaseholdLand 1,418.19 109.53 - 1,527.72 151.86 16.82 - 168.68 1,359.04 1,266.33

Buildings 16,508.02 1,389.35 -17,897.37 1,856.38 326.09 - 2,182.47 15,714.90 14,651.64

PlantandMachinery 145,686.81 16,709.47 35.10162,361.18 58,961.01 7,338.96 30.47 66,269.50 96,091.68 86,725.80

OfficeEquipment 1,933.42 56.46 267.14 1,722.74 1,050.17 130.45 238.83 941.79 780.95 883.25

FurnitureandFixtures 3,275.41 635.11 219.19 3,691.33 649.90 242.23 183.56 708.57 2,982.76 2,625.51

Vehicles# 1,122.49 21.39 181.54 962.34 351.84 95.74 79.45 368.13 594.21 770.65

Total (A) 171,818.13 19,015.59 1,633.77189,199.95 63,021.16 8,150.29 532.31 70,639.14 118,560.81108,796.97

Intangible assets

Computersoftware 1,063.75 - 249.60 814.15 687.22 134.18 237.12 584.28 229.87 376.53

Total (B) 1,063.75 - 249.60 814.15 687.22 134.18 237.12 584.28 229.87 376.53

Grand Total (A) + (B) 172,881.88 19,015.59 1,883.37190,014.10 63,708.38 8,284.47 769.43 71,223.42 118,790.68

PreviousYear 162,433.35 12,062.31 1,613.78 172,881.88 56,219.07 8,243.15 753.84 63,708.38 109,173.50

Notes:

*(i)AdditiontoPlantandMachineryincludesforeignexchangefluctuationdifferencearisingunderAS-11(Theeffectofchangesinforeignexchange

rates)videnotificationno.G.S.R225(E)dated31stMarch,2009issuedbyMinistryofcorporateaffairsofGovernmentofIndiaasamendedby

Companies(AccountingStandards)(SecondAmendment)Rules2011.

*(ii)Includescapitalisationof:

(a)Financecost:Plant&Machiery`2,361.03Lacs(PreviousYear`584.51Lacs).

(b)Exchangedifference:PlantandMachinery`962.10Lacs(PreviousYear`419.89Lacs).

#Grossblockincludes` 130.39Lacs(PreviousYear`367.58Lacs)securedbyhypothecationagainstloan




11. INVESTMENTS


Particulars Nominal As at As at Value 31.03.2014 31.03.2013

Non-Current InvestmentsLong Term, Non- Trade Investment - At Cost less provisionInvestment in Equity InstrumentsUnquoted, Fully paid up - Subsidiary Companies1,500,000*(PreviousYear1,500,000)

EquitySharesofIGLFinanceLtd. ` 10 550.00 550.00

Less:Provisionfordiminuition 425.00 125.00 425.00 125.00

100,000(PreviousYear100,000)EquityShares

ofIGLCHEMInternationalPTELtd.,Singapore SGD1 27.41 27.41

50,112,100*(PreviousYear50,112,100)EquityShares

ofShakumbariSugar&AlliedIndustriesLtd. ` 10 4,427.50 4,427.50

Unquoted, Fully paid up - Joint Venture5,000(PreviousYear5,000)EquitySharesof

KashipurInfrastructureandFreightTerminalPrivateLimited ` 10 0.50 0.50

4,580.41 4,580.41

Quoted, fully paid up - Others211,360(PreviousYear211,360)EquitySharesofIDBIBankLtd ` 10 105.00 105.00

34,000(PreviousYear34,000)EquitySharesofAxisBankLtd. ` 10 7.14 7.14

2,500(PreviousYear2,500)EquitySharesofICICIBankLtd. ` 10 1.97 1.97

114.11 114.11

4,694.52 4,694.52Investment in Preference Share (Unquoted, fully paid up) - Subsidiary Company10,000,000*(PreviousYear10,000,000)10%CumulativeRedeemablePreferenceSharesof ` 10 1,000.00 1,000.00ShakumbariSugar&AlliedIndustriesLtd. 1,000.00 1,000.00Total Non - Current investments 5,694.52 5,694.52Aggregatedbookvalueofunquotedinvestment 5,580.41 5,580.41Aggregatedbookvalueofquotedinvestment 114.11 114.11Marketvalueofquotedinvestments 700.53 704.46Aggregateprovisionmadefordiminuitioninvalueofinvestments 425.00 425.00Current Investments - at the lower of cost or fair valueOthers-Quoted,fullypaidup(Non-TradeInvestment)Investments in Mutual fundsNil(PreviousYear5,000,000)BirlaSunLifeFixedTermPlanSeriesFKGrowth ` 10 - 500.00Nil(PreviousYear5,000,000)ICICIPrudentialFMPSeries64-367daysPlanDCumulative ` 10# - 500.00Nil(PreviousYear10,000,000)ICICIPrudentialFMPSeries64-367daysPlanBCumulative ` 10# - 1,000.00 - 2,000.00




11. INVESTMENTS (Contd..)



Others- Unquoted, fully paid up (Non- Trade Investment)

Investments in Mutual funds

Nil(PreviousYear668,518)UTIBondsFund-DividendPlan ` 10# - 82.21

Nil(PreviousYear1,510,779)KotakBondPlanA-Growth ` 10# - 500.00

Nil(PreviousYear28,200,859)SBIDynamicBondFund-Growth ` 10# - 4,000.00

Nil(PreviousYear16,531,658)RelianceDynamicBondFund-Growth ` 10# - 2,500.00

Nil(PreviousYear12,261,453)DWSShortMaturityFundReg-Growth ` 10# - 2,500.00

Nil(PreviousYear1,949,367)BirlaSunLifeIncomePlus-Growth ` 10# - 1,000.00

100,000(PreviousYear100,000)SBIGoldFund-Growth ` 10# 9.80 10.00

Nil(PreviousYear5,276,047)RelianceIncomeFund-Growth ` 10# - 2,000.00

Nil(PreviousYear7,232,227)IDFCDynamicBondPlanB-Growth(Regular) ` 10# - 1,000.00

Nil(PreviousYear7,192,434)IDFCDynamicBondPlanB-Growth(Direct) ` 10# - 1,000.00

Nil(PreviousYear552,614)IDFCMoneyManager-Growth `10# - 100.00

Investments in Pass Through Certificates (PTCs)

Nil(PreviousYear500)GoldLoanReceivableTrust-II,by

IDBITrusteeshipServicesLtd. `100000 - 500.00

9.80 15,192.21

Total Current Investments 9.80 17,192.21

Aggregatedbookvalueofunquotedinvestment 9.80 15,192.21

Aggregatedbookvalueofquotedinvestment - 2,000.00

Marketvalueofquotedinvestments - 2,180.41

AggregateprovisionmadeforDiminuitioninvalueofInvestments 0.20 -

*ReferNoteno34tofinancialstatements.#Pledgedwithbanksassecurityagainstborrowings.




12. LONG TERM LOANS & ADVANCES(Unsecured,consideredgoodunlessstatedotherwise)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

CapitalAdvances 2,243.59 1,345.05

SecurityDeposits@ 2,486.65 2,139.90

InterCorporateDeposits# 964.48 2,659.93

OtherLoans&advances* 152.07 210.14

(Includes `0.66Lacs(PreviousYear`1.41Lacs)duefromadirector)

5,846.79 6,355.02

*Prepaidexpensesandloanstoemployees

#Includesloanstorelatedparties`964.48lacs(Previousyear`964.48lacs)

@ Includes ` 760.00 lacs (PreviousYear ` 480.00 Lacs) security deposit to director, private companies inwhichdirector/directorsofcompanyisdirectorandarealsorelatedparties. 13. OTHER NON-CURRENT ASSETS

( ìnLacs)

As at As at 31.03.2014 31.03.2013

Bankbalanceondepositaccount*(ReferNoteNo.16) 47.97 36.21

Others

Upfrontfee,processingcharges,etcamortisedovertenureofloans 181.99 139.31

229.96 175.52

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowingsmaturingafter12months

14. INVENTORIES (At lower of cost and net realisable value)(Astaken,valuedandcertifiedbythemanagement)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

RawMaterials* 22,271.88 23,191.38

Work-in-Process 4,401.57 2,614.36

Finished Goods ** 11,653.27 7,518.89

StoresandSpares 16,308.60 12,725.93

ResidueProduct 53.14 39.42

Scrap 6.36 7.72

Loose Tools 24.40 23.43

54,719.22 46,121.13

*Includes in transit `218.18Lacs(PreviousYearNil)**Includes in transit ` 356.15Lacs(PreviousYear` 539.85Lacs)




15. TRADE RECEIVABLES(Unsecured,consideredgoodunlessstatedotherwise)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

(a) Outstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment

-Consideredgood 2,459.78 543.39

-Doubtful 36.43 37.78

(b) Other(Consideredgood) 41,715.90 29,321.88

44,212.11 29,903.05

Less:ProvisionforDoubtfuldebts 36.43 37.78

44,175.68 29,865.27

16. CASH AND BANK BALANCES

( ìnLacs)

As at As at 31.03.2014 31.03.2013

(a) Cash and Cash equivalents (i) CashinHand 28.11 27.38

(ii) BalancewithBanks

-OnCurrentAccounts 2,059.71 5,025.61

2,087.82 5,052.99

(b) Other bank balances -InFixedDepositAccounts*-Current 13,624.45 6,782.09

-InFixedDepositAccounts*-Noncurrent 47.97 36.21

-OnDividendAccounts 121.29 332.36

15,881.53 12,203.65

Less:AmountdisclosedunderOtherNonCurrentAssets(NoteNo13) 47.97 36.21

15,833.56 12,167.44

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowings.




17. SHORT TERM LOANS & ADVANCES(Unsecured,consideredgoodunlessstatedotherwise)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

DepositswithNonBankingFinancialInstitutions 4,491.00 4,491.00

InterCorporateDeposits# 14,723.64 1,960.00

Interestreceivable 1,484.49 1,277.80

(Includesreceivablefromrelatedparties`870.35Lacs(PreviousYear`766.74Lacs)

ExportIncentivereceivable 2,851.01 5,565.53

BalancewithExciseandOtherAuthorities 8,682.15 8,966.11

DepositswithGovernmentDepartments&Others 166.56 177.15

MATCreditEntitlements 8,075.74 8,090.16

AdvanceIncomeTax/Taxdeductedatsource(netofincometaxprovisionof 4,076.08Lacs,PreviousYear 7,211.48Lacs) 640.35 171.63

Prepaidexpenses 919.57 862.98

OtherAdvances:

Advancesrecoverableincashorinkindorfor

valuetobereceived* 21,052.12 18,454.49

Doubtfuladvances/loans 46.61 46.61

21,098.73 18,501.10

Less:Provisionfordoubtfuladvances/loans (46.61) 21,052.12 (46.61) 18,454.49

63,086.63 50,016.85

*Includesbusinessadvanceof 8,376.16Lacs(PreviousYear 5,080.08Lacs)torelatedpartiesandshareapplicationmoney paid `1462.59Lacs(PreviousYearNil)torelatedparty.

#Depositwitharelatedparty.

18. OTHER CURRENT ASSETS

( ìnLacs)

As at As at 31.03.2014 31.03.2013


239.72 276.32




19. REVENUE FROM OPERATIONS

( ìnLacs)

As at As at 31.03.2014 31.03.2013

SalesofProducts

Glycols 75,786.60 69,336.99

E.O.Derivatives 110,562.84 100,524.64

GuarGumPowderandderivatives 29,603.61 74,243.30

EthylAlcohol(Potable) 65,744.32 66,027.36

Industrial Gases 3,961.33 3,390.01

Saleoftradedgoods

ChemicalProducts 50,117.28 54,682.67

ExportIncentivereceivable 704.81 7,116.57

Others 4,938.16 6,847.11

341,418.95 382,168.65

Less:ExciseDuty 56,482.11 52,280.27

284,936.84 329,888.38

Sales of Service

Rent 1,376.40 1,196.19

Others 551.25 295.79

1,927.65 1,491.98

Other Operating Revenue

Provisionnolongerrequiredwrittenback/Sundrybalanceswrittenback 49.51 27.10

Exchangefluctuationgain(NetofLossof`0.20Lacs) 0.62 -

MiscellaneousIncome 1,585.42 1,975.73

1,635.55 2,002.83

Total Revenue from operations 288,500.04 333,383.19

20. OTHER INCOME

( ìnLacs)

As at As at 31.03.2014 31.03.2013

Interest Income 1,349.82 1,131.02

DividendonLongtermInvestment 15.56 9.03

InterestonCurrentInvestment(TDSNil,PreviousYear`1.90Lacs) 12.09 5.85

DividendonCurrentInvestment 2.00 6.40

ReversalofDiminutioninvalueofCurrentInvestments - 3.17

CommodityDerivativeIncome - 24.35

ProfitonsaleofCurrentInvestment 961.27 82.41

ProfitonsaleofFixedAssets 553.45 16.04

2,894.19 1,278.27




21. COST OF MATERIALS CONSUMED

( ìnLacs)

2013-14 2012-13

RawMaterialsconsumed

i)Molasses 38,262.34 27,713.63

ii)ChainStarters 12,196.12 10,621.87

iii)SpecialDenaturedSpirit 50,250.82 47,830.42

iv)Guarsplit,Guarseeds,etc. 28,585.51 50,392.72

v)ProductionChemicals&Others 13,232.55 14,929.18

vi)PackingMaterial 11,799.58 11,674.20

Total 154,326.92 163,162.02

Consumption of Imported and Indigenous Raw Materials 2013-14 2012-13

% age Amount %age Amount

Imported 19.44 30,000.37 17.72 28,920.34

Indigeneous 80.56 124,326.55 82.28 134,241.68

100.00 154,326.92 100.00 163,162.02

22. PURCHASE OF STOCK IN TRADE

( ìnLacs)

2013-14 2012-13

ChemicalandOilProducts 51,030.79 56,172.71

51,030.79 56,172.71

23. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE

( ìnLacs)

2013-14 2012-13

CLOSING STOCK

Finished Goods

- Glycols 2,586.72 1,564.80

-E.O.Derivatives 7,238.13 4,561.41

-EthylAlcohol(Potable) 309.59 308.72

-GuarGumPowderandderivatives 1,232.94 777.50

-GuarChuri 0.26 0.18

- Industrial Gases 12.25 31.83

-HerbalProducts 273.38 274.45

Total Finished Goods 11,653.27 7,518.89

Work-in-Process (Note @ below) 4,401.57 2,614.36

Residue Product 53.14 39.42

16,107.98 10,172.67




LESS : OPENING STOCKFinished Goods- Glycols 1,564.80 2,685.15-E.O.Derivatives 4,561.41 4,127.60-EthylAlcohol(Potable) 308.72 408.47-GuarGumPowderandderivatives 777.50 515.55-GuarChuri 0.18 0.13- Industrial Gases 31.83 20.48-HerbalProducts 274.45 340.94Total Finished Goods 7,518.89 8,098.32Work-in-Process (Note @ below) 2,614.36 2,151.89Residue Product 39.42 7.04 10,172.67 10,257.25Less:DifferencialExciseDutyprovidedonStocks. 281.22 (49.66) (5,654.09) 34.92Note @Work-in-Process 31.03.2014 31.03.2013 Alcohol 1,690.46 1,045.08 EO 58.05 10.56 Guar Gum 260.25 234.16 RS/ENA 397.62 261.20 Others 1,995.19 1,063.36 4,401.57 2,614.36

24. EMPLOYEE BENEFITS EXPENSE

( ìnLacs)

2013-14 2012-13

Salaries,Wages,Allowances,etc. 6,629.18 6,935.30

ContributiontoProvidentandotherFunds 541.63 490.46

Employees’WelfareandotherBenefits 780.75 698.32

Total 7,951.56 8,124.08

25. FINANCE COSTS

( ìnLacs)

2013-14 2012-13

InterestonFixedLoans 7,211.06 8,755.83OtherInterest 4,973.86 4,459.38OtherBorrowingCostFinancialCharges 1,935.67 2,117.75 14,120.59 15,332.96Less:InterestReceivedontemporarydeposits 767.39 2,060.50 13,353.20 13,272.46

( ìnLacs)

2013-14 2012-13

23. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE (Contd.)




26. OTHER EXPENSES

( ìnLacs)

2013-14 2012-13

Storesandsparesconsumed 6,408.95 7,758.56

PowerandFuel 34,618.10 34,943.85

RepairsandMaintenance

-Buildings 476.80 401.98

-PlantandMachinery 2,487.34 1,825.16

-Others 511.66 415.51

Rent 142.85 131.83

RatesandTaxes 1,443.10 1,392.44

TravellingandConveyance 952.63 918.16

Insurance 479.61 383.34

(NetofrecoveryfromcustomersNil,PreviousYear` 0.71Lacs)

Directors’sittingFee 12.80 12.80

CommissiontoNonExecutiveDirector - 10.50

Donation 121.12 137.96

CommissiontoSellingagents 983.41 833.58

Freightforwardingandothers(Netofrecoveryfromcustomers/provision 6,384.45 8,900.51

writtenback` 903.81Lacs,PreviousYear` 857.99Lacs)

ExchangeFluctuationloss(PreviousYearnetofgain` 1,652.91Lacs). - 6,505.09

CommodityDerivativeLoss 7.94 -

Baddebtswrittenoff 14.14 4.08

Less:Provisionfordoubtfuldebtswrittenback 0.89 13.25 4.08 -

LossonSale/DiscardofFixedAssets 123.56 106.38

Debts/Advanceswrittenoff 24.16 5.76

ProvisionfordiminutioninvalueofCurrentInvestments 0.20 -

AmortisationofForeignCurrencyMonetaryItemTransactionDifference 1,832.88 2,009.64

WealthTax 9.86 11.46

Printing&Stationery,Postage,Telephone,security,legalandprofessionalandotherMiscellaneousExpenses 2,873.36 2,447.67

59,908.03 69,152.18

Consumption of Imported and Indigenous Stores and spares

% age Amount %age Amount

Imported 38.93 2,494.81 51.68 4,009.95

Indigeneous 61.07 3,914.14 48.32 3,748.61

100.00 6,408.95 100.00 7,758.56




27. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR (AS CERTIFIED BY THE MANAGEMENT) :(i) Inrespectof: ( ìnLacs)

Particulars As onMarch 31, 2014

As onMarch31,2013

CentralExcise/StateExcise 19,592.03 10,945.93

Customs 860.10 261.93

ServiceTax 66.46 69.02

SalesTax 28.79 32.67

Othermatters 2,021.94 2,012.26

Total 22,569.32 13,321.81

(ii) BillsdiscountedwithBanks` 5,258.74Lacs(PreviousYear:` 15,826.08Lacs).

(iii) CorporateGuarantee tobanks for loanavailedbyShakumbariSugar&Allied IndustriesLimited (asubsidiarycompany):

(ìnLacs)

Amount Outstanding 31.03.2014 31.03.2013

12,428.52 12,665.42

(B)Customdutysavedon importofrawmaterialunderAdvanceLicensepending fulfillmentofexportobligation isamounting to ` 1,935.70Lacs(PreviousYear`774.17Lacs).

Themanagementisoftheviewthatconsideringthepastexportperformanceandfutureprospectsthereiscertaintythat pendingexport obligationunderadvance licenses,will be fulfilledbeforeexpiry of the respectiveadvancelicenses.Accordinglyandon“GoingConcernConcept”basisthereisnoneedtomakeanyprovisionforcustomdutysaved.

28. Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor(netofadvancesof`2,243.59Lacs,PreviousYear` 1,345.05Lacs)are`4,295.71Lacs(PreviousYear`7,238.67Lacs).

29. Duringpreviousfinancialyear,Companyhad issuedandallotted3079000nos. fullypaidupequitysharesof`10eachattherateof` 138.56(includingpremiumof` 128.56pershare)onpreferentialbasisintermoftheresolutionpassedinAnnualGeneralMeetingheldon15thSeptember,2012.Thetotalreceiptsagainstthisissueof` 4,266.26Lacshavebeenfullyutilizedforthepurposeasstatedintheresolutionforwhichtheissuewasmade.

30. Advancesrecoverable incashorkind includes loansandadvances in thenatureofLoanrecoverable fromtheemployees amounting to ` 217.32Lacs(PreviousYear` 239.09Lacs)wherethereisnointerestorinterestisbelowSection372AoftheCompaniesAct(MaximumBalanceoutstandingduringtheyear` 381.66Lacs,PreviousYear` 374.07Lacs).Outoftheabove` 57.98Lacs(PreviousYear` 79.70Lacs)eitherhasrepaymentschedulebeyondsevenyears(MaximumBalanceoutstandingduringtheyear` 78.44Lacs,PreviousYear` 96.18Lacs).

31. Employees Benefits:a) Defined Contribution Plan: ContributiontoDefinedContributionPlan,recognizedasexpensefortheyearareasunder:

( ` inLacs)

Current Year PreviousYear

Employer’sContributiontoProvidentFund 464.29 418.33

b) Defined Benefit Plan: Theemployees’gratuity fundschememanagedbya trust isadefinedbenefitplan.Thepresentvalueof

obligationisdeterminedbasedonactuarialvaluationusingtheProjectedUnitCreditMethod,whichrecognizeseachperiodofserviceasgivingrisetoadditionalunitofemployeebenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.Theobligationforleaveencashmentisrecognizedinthesamemannerasgratuity.




I. Reconciliation of opening and closing balance of Defined Benefit Obligation(` in Lacs)

Gratuity Leave Encashment (Unfunded)

31.3.2014 31.3.2013 31.3.2014 31.3.2013

PresentValueofObligationatthebeginningoftheyear 1,734.00 1,380.86 439.50 365.67

CurrentServiceCost 162.11 153.16 60.02 48.00

InterestCost 138.73 118.75 35.16 31.45

Actuarial(gain)/lossonobligations (36.03) 147.07 (8.41) 17.81

BenefitPaid (83.74) (65.84) (27.53) (23.43)

PresentValueofObligationasattheendoftheyear 1,915.07 1,734.00 498.74 439.50

II. Reconciliation of opening and closing balance of fair value of plan assets (` in Lacs)

Gratuity31.03.2014 31.03.2013

Fairvalueofplanassetsatthebeginningoftheyear 1,448.08 1,143.65

ExpectedReturnonPlanAssets 130.33 91.49

Contributions 285.92 237.21

Actuarialgain/(loss)onPlanassets 7.36 41.57

BenefitPaid (83.74) (65.84)

Fairvalueofplanassetsattheendoftheyear 1,787.95 1,448.08

III. Reconciliation of fair value of assets and obligation (` in Lacs)


31.03.2014 31.03.2013 31.03.2014 31.03.2013

Fairvalueofplanassetsattheendoftheyear 1,787.95 1,448.07 - -

PresentValueofObligationattheendoftheyear 1,915.07 1,734.00 498.74 439.50

FundedStatus[surplus/(Deficit)] (127.12) (285.93) (498.74) (439.50)

NetAssets/(Liability)RecognizedinBalanceSheet (127.12) (285.93) (498.74) (439.50)

IV. Expenses recognized during the year (` in Lacs)


31.03.2014 31.03.2013 31.03.2014 31.03.2013

CurrentServiceCost 162.11 153.16 60.02 48.00

InterestCost 138.73 118.75 35.16 31.45

ExpectedReturnonPlanAssets (130.33) (91.49) - -

Actuarial(gain)/loss (43.39) 105.51 (8.41) 17.81

NetExpensesRecognized 127.12 285.93 86.77 97.26

V. Investment Detail AllInvestmentsaremadewithTrust.




VI. Actuarial / Demographic assumptions:- Gratuity Leave Encashment

(Unfunded)31.03.2014 31.03.2013 31.03.2014 31.03.2013

MortalityTable(LIC) 1994-96 (Ultimate) 1994-96 (Ultimate)Discountrate(Perannum) 9.10% 8.00% 9.10% 8.00%ExpectedReturnonPlanAssets(Perannum) 9.00% 9.00% NA NARateofescalationinsalary(perannum) 8.00% 8.00% 8.00% 8.00%Retirement Age 58 Years 58 yearsWithdrawalRate(AllAges) 10% 10%

Theestimateofrateofescalation insalaryconsidered inactuarialvaluation, takenintoaccount inflation,seniority,promotionandotherrelevantfactorsincludingsupplyanddemandintheemploymentmarket.Theaboveinformationiscertifiedbytheactuary.

Theprincipalassumptionsarethediscountrate&salarygrowthrate.ThediscountrateisgenerallybaseduponthemarketyieldsavailableonGovernmentbondsattheaccountingdatewithatermthatmatchesthatoftheliabilities.

32. Intheearlieryears,theStateGovernmentofUttarPradesh(UP)hadimposedalevyoflicensefeeontransferof alcohol from thedistillery to the chemical plant.The levywaschallengedby theCompany in theHon’bleSupremeCourt and onOctober 18, 2006 thematter was finally decided by TheHon’ble SupremeCourt infavouroftheCompany.Accordingly,Companyhadfiledanapplicationforrefundofamountpaidof` 507.05Lacs(PreviousYear 507.05Lacs)(shownasrecoverableundertheheadShortTermLoansandAdvances)withStateGovernmentofUttarakhand,whichisstillpendingforrefundoftheamount.

33. Intheearlieryears,theStateGovernmentofUttarakhandhadleviedExportPassFeeonENA/RSexportoutsideIndia.ThematterisfinallydisposedofbyHon’bleHighCourtofUttarakhandvideitsOrderdated9thJanuary,2012andhasdeclaredthelevyofsaidfeeasunsustainableandirrecoverable.Subsequently,onJune8,2012,videUttarakhandExcise(Amendment)Act,2012,UttarakhandGovernmentretrospectivelyrevivedoldnotificationrelatingtoimpositionofexportfeeonENAand`.TheCompanyfiledWritPetitionchallengingtheabovesaidnotificationandvideorderdatedSeptember12,2012theHon’bleHighCourtofUttarakhandhasgrantedstayandrestrainedStatefromimposingexportfee.Amountof` 106.15Lacs(PreviousYear`106.15Lacs)paidunderprotestisshownasrecoverablefromStateGovt.ofUttarakhand,inthebooksofaccount.

34. (A) (i) Companyhasinvestmentof` 5,427.50Lacs(PreviousYear` 5,427.50Lacs)inequitysharesand10%cumulativeredeemablepreferencesharecapitalinasubsidiarycompanyShakumbariSugarandAlliedIndustries Limited (SSAIL)whose networth has been fully eroded duringthe previous financial yearandSSAILhasalsobeendeclaredsick industrialundertakingasper theprovisionofSick IndustrialCompaniesAct,1985.

Considering the intrinsic value of the investee assets, long term nature of investment and directionissuedbytheHon’bleBoardforIndustrialandFinancialReconstruction(BIFR)forpreparationofrevivalschemebytheoperatingagencyasappointed,whichhasbeenfiledwithBIFRon11thJanuary2014,noprovisionatthisstageisconsiderednecessarybythemanagementagainstinvestmentsmadeinabovestatedsubsidiarynamelySSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to ` 1,834.83 Lacs(PreviousYear` 1,713.30Lacs)(includinginterestthereon)andadvancesof` 8,375.82Lacs(PreviousYear` 5,077.63Lacs),wheremanagementisconfidentaboutrecoverability/realisability,ofthesame.Accordingly,consideringthefactsasstatedinPara(i)above,amountisgoodandfullyrecoverableandnoprovisionthereagainstisconsiderednecessarybythemanagement.

(B) ShortTermloansandadvancestorelatedpartyincludesInterCorporateDepositamountingto` 14,723.64Lacs(PreviousYear` 1,960.00Lacs)giventoIGLFinanceLtd.(IGLFI),100%subsidiaryofthecompany.IGLFIinturnhadinvestedfundsforshorttermincommodityfinancingcontractsofferedbyNationalSpotExchangeLtd. (NSEL).NSELhasdefaulted in settling the contracts onduedates.However, consideringthepresentstateofaffairs,actiontakenbytheGovt.andotherauthorities,themanagementisconfidentofrecoveryofduesfromNSELoveraperiodoftime.

Accordingly,againsttotalexposureinIGLFIof` 14,848.64Lacs(PreviousYear` 2,085.00Lacs)(includingInvestment incapitalof` 125.00Lacs),noprovisionhasbeenconsiderednecessaryatthisstagebythecompanyandshownasgoodandfullyrecoverable.

35. TheCompanyhaschallengedthelegalityandthevalidityofthefinancialderivativetransactiondatedJanuary15,2008enteredintowithStandardCharteredBank,NewDelhi(SCB),whichisthesubjectmatterofcivilsuit(Originalsuit)pendingbeforetheHon’bleHighCourtofDelhi(HighCourt)atNewDelhi.Provisionmadeinearlieryearhadbeenwrittenbackinthebooksofaccountsintheyear2011-12inviewofthefavorableopinionofthelegal consultantand the fact thatDRTandDRATdidnotentertainapplicationof theSCBandpendingfinaldecisionoftheHighCourtsamehasbeenconsideredundercontingentliability.




36. InaccordancewithCompanies (AccountingStandards)AmendmentRules2009asamendedbyCompanies(AccountingStandards) (SecondAmendment)Rules2011, theCompanycontinued itspolicy,asexercised infinancialyear2008-09, theoptionofadjustingexchangedifferencesarisingon reportingof long term foreigncurrencymonetary items related to acquisition of depreciable capital assets in the cost of the assets to bedepreciated over the balance life of the assets and other long termmonetary item in the “ForeignCurrencyMonetary Item Translation Difference” to be amortised over the period of loan. Accordingly: (a) Exchangedifferences(gain)/lossrelatingtolong-termmonetaryitems,insofarrelatedtoacquisitionofdepreciablecapitalassets,arisingduringtheyearamountingto` 936.50Lacs(PreviousYear` 378.92Lacs)(netofdepreciation` 25.60Lacs,PreviousYear`40.97Lacs)adjustedtothecostoffixedassets,and(b)relatingtoother long-term monetary items arising during the year amounting to ` 1,206.62Lacs(PreviousYear` 824.43Lacs)(Netofamortizationof` 655.34Lacs,PreviousYear`636.14Lacs)areadjustedto“ForeignCurrencyMonetaryItemTranslationDifference”.

37. As requiredby section22ofTheMicro,Small andMediumEnterprisesDevelopmentAct, 2006 the followinginformationisdisclosed:

(ìnLacs)S. No Particular 2013-14 2012-13a) i)Principalamountremainingunpaidattheendoftheaccountingyear - -

ii)Interestdueonabove - -b) Theamountofinterestpaidbythebuyeralongwithamountofpayment

madetothesuppliersbeyondtheappointeddate- -

c) The amount of interest accrued and remaining unpaid at the end offinancialyear

- -

d) Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheduedateduringtheyear)butwithoutaddinginterestspecifiedunderthisAct

- -

e) Theamountoffurtherinterestdueandpayableinsucceedingyear,untilsuchinterestisactuallypaid.

- -

Theaboveinformation’sregardingMicro,SmallandmediumEnterprisehasbeendeterminedtotheextentsuchpartieshavebeenidentifiedofinformationavailablewiththeCompany.

38. (i) CatalystischargedtotheStatementofProfit&Lossasconsumable(Stores&Spares)basedontechnicallyassessedusefullife(1to3Years).

(ii) SpecialisedComputerSoftwareisamortisedoveritsusefullifeof6yearsonSLMbasis.39. Earningspershare(EPS):

2013-14 2012-13Netprofit/(loss)fortheyearattributabletoequityshareholders(` in Lacs) (11,954.48) 12,093.74Weightedaveragenumberofequitysharesoutstanding 30961500 29426218Basicanddilutedearningspershare(facevalueof` 10 each) (`) (38.61) 41.10

40. Capitalwork-in-progressincludesmachineryunderinstallation,buildingsunderconstruction,construction/erectionmaterialinhandandotherassetsandalsoincludesthefollowingpre-operativeexpenses:

(ìnLacs)Particulars 2013-14 2012-13Amountbroughtforwardfrompreviousyear 1,773.84 1,281.88Add:RawMaterial&ChemicalConsumed 24.47 13.32Salary,wages,allowances,etc. 116.04 27.57ContributiontoProvidentandotherfunds 2.61 2.47Employees’welfareandotherbenefits 17.82 15.08LegalandProfessionalcharges 2.14 4.85RepairandMaintenance 30.79 49.64TravellingandConveyance 57.28 54.87InterestonFixedLoans 1,932.26 779.29PowerandFuel 589.19 339.45RatesandTaxes 9.40 1.68MiscellaneousExpenses 0.87 1.28

4,556.71 2,571.38Less:Transferred/Capitalisedduringtheyear 3,118.18 797.54Balancecarriedforward 1,438.53 1,773.84




41. RelatedPartiesDisclosure(Asidentifiedbythemanagement): (i) Relationships: A. SubsidiaryCompanies - IGL Finance Limited (IGLFI) -ShakumbariSugarandAlliedIndustriesLimited(SSAIL) -IGLCHEMInternationalPTE.Ltd.(IGLCHEM) B. KeyManagementPersonnel&theirRelatives -U.S.Bhartia(ChairmanandManagingDirector) -M.K.Rao(ExecutiveDirector) -PragyaBhartia C. EnterprisesoverwhichKeyManagementPersonnelhavesignificantinfluence: -AjayCommercialCo.(P)Ltd. -J.B.CommercialCo.(P)Ltd. -KashipurHoldingsLimited -PolylinkPolymers(India)Ltd. -HindustanWiresLimited -SupreetVyapaar(P)Ltd. -MayurBarter(P)Ltd. -FacitCommosales(P)Ltd. -J.Boseck&Co.(P)Ltd. D. JointVentureEnterprise -KashipurInfrastructureandFreightTerminalPrivateLimited

(ii) DetailofTransactionswithrelatedparties:(ìnLacs)

Related Party Trans-action Summary

Subsidiaries Significant Influence

Joint Venture Key Managerial Personnel

Relative of KMP

2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013

PurchaseOfMaterial 2,406.03 1,914.08

PurchaseOfServices 38.41 48.70SaleofMaterial 3,656,92 4,643.64 293.76 225.19

PurchaseofFixedAssets

- 16.28

PurchaseofStoresandSpares

5.57 -

SaleofFixedAssets 1,462.59 -ICDGiven 22,054.00 7,058.00 - 300.00 -

ICDReceivedBack 9,290.36 5,098.00 - 300.00 -CapitalAdvanceGiven 1,000.00 -

Interest Income 621.40 214.17 - 4.14 -

InvestmentinEquityShares

- 50.00

SecurityDepositGiven 280.00 -

ReimbursementofExpenses–Given

4.90 2.45 1.07 -

ReimbursementofExpenses–Received

- 4.92

ICDReceived 2,830.00 2,010.24

ICDPaidBack 4,013.50 5,916.50

InterestExpense 717.10 968.48RentPaid 25.68 25.08 24.00 -

Salary 27.29 27.29

ManagerialRemunera-tion

295.83 873.34 69.08 62.81

BalanceOutstanding

PayableICDPayable(includinginterest)

6994.51 8,184.58

Others 8.92 2.24

Receivable

ICD(includinginterest) 16,558.47 3,691.22CapitalAdvances 1,000.00 -SecurityDeposit 480.00 480.00 280.00 -Others 8,906.13 5,755.64 4.64 4.64 1,462.93 -




(iii) DisclosureinrespectofMaterialRelatedPartytransactionsduringtheyear: a)PurchasesofMaterialarefrom:

•SSAIL`2,406.03Lacs(PreviousYear`1,914.08Lacs).b) SalesofMaterialareto: •IGLCHEM`3,656.21Lacs(PreviousYear`4,640.34Lacs). •HindustanWiresLimited.`293.76Lacs(PreviousYear`225.19Lacs).c) InterestIncomeincludesfrom: •SSAIL`135.03Lacs(PreviousYear` 194.26Lacs). •IGLFI`486.37Lacs(PreviousYear` 19.91Lacs).d) InterestExpenseincludesto: •KashipurHoldingLimited`549.78Lacs(PreviousYear`669.60Lacs). •SupreetVyapaar(P)Ltd.`39.45Lacs(PreviousYear`82.21Lacs). •MayurBarter(P)Ltd.`93.59Lacs(PreviousYear` 161.74Lacs).e) InterCorporateDeposit/OtherDepositsgivenincludesto: •SSAILNil(PreviousYear`4,398.00Lacs) •IGLFI`22,054.00Lacs(PreviousYear`2,660.00Lacs).f) InterCorporateDeposit/OthersDepositsreceivedbackincludesfrom: •SSAILLimitedNil(PreviousYear`4,398.00Lacs) •IGLFI` 9,290.36Lacs(PreviousYear`700.00Lacs).g) Capitaladvancesgiven: •HindustanWiresLimited`1,000.00Lacs(PreviousyearNil)h) InterCorporateDepositreceivedincludesfrom: •KashipurHoldingLimited`2,530.00Lacs(PreviousYear` 1,738.24Lacs). •MayurBarter`300.00Lacs(PreviousYearNil).i) InterCorporateDepositpaidbackincludesto: •KashipurHoldingLimited`2,045.00Lacs(PreviousYear`4,040.00Lacs). •MayurBarter(P)Ltd.`820.00Lacs(PreviousYear` 1,113.00Lacs). •SupreetVyapaar(P)Ltd.`547.00Lacs(PreviousYear`350.00Lacs).j) InterCorporateDepositPayable(includinginterest)includes: •KashipurHoldingLimited`5,849.90Lacs(PreviousYear`5,381.03Lacs). •MayurBarter(P)Ltd.`788.61Lacs(PreviousYear`1,298.43Lacs).k) ICDReceivableincludes: •Shakumbari Sugar and Allied Industries Limited ` 1,834.83 Lacs (Previous Year ` 1,713.30 Lacs).

(Maximumbalanceoutstandingduringtheyear`1,834.83Lacs,PreviousYear` 4,962.48Lacs). •IGLFinanceLimited`14,723.64Lacs(PreviousYear` 1,977.92Lacs).(Maximumbalanceoutstanding

during the year ` 15,857.00Lacs,PreviousYear`1,977.92Lacs).l) OthersReceivableincludes: • Shakumbari Sugar and Allied Industries Limited ` 8,375.82 Lacs (Previous Year ` 5,077.63 Lacs).

(Maximumbalanceoutstandingduringtheyear` 10,135.18Lacs,PreviousYear`8,878.31Lacs). •IGLCHEM International Pte. Ltd. ` 530.31 Lacs (PreviousYear ` 675.56 Lacs). (Maximumbalance

outstanding during the year `1,403.41Lacs,PreviousYear` 1,310.79Lacs).m) Capitaladvancesreceivable: •HindustanWiresLimited`1,000.00Lacs(PreviousyearNil)

42. ExpenditureonResearch&Development: (ìnLacs)

Particulars 2013-14 2012-13

Capital 92.45 188.18

Revenue 245.13 385.83

Total 337.58 574.01

43. Balancesofcertaindebtors,creditors,otherliabilitiesandloansandadvancesareinprocessofconfirmationand/orreconciliation.Managementisconfidentthatonfinalreconciliation/confirmationofthese,therewillnotbeanymaterialadjustment.

44. Inpreviousyear foreignexchangegainamountingto`312.63Lacs,netofLossof` 4,361.19LacshasbeenincludedintherespectiveheadsofaccountsintheStatementofProfit&Loss.ThishasnoimpactonProfit/Lossfortheyear.

45. Exceptionalitemincludes:a) Lossonaccountofexchangeratedifferencesamountingto`10,803.19Lacs(netofgainof` 11,336.93Lacs)

foryearended31stMarch2014,onpayment,settlementaswellasreinstatementofshorttermforeigncurrencyborrowingsandothermonetaryassets/liabilities,and




b) Provisionmade,againstamountreceivablefromanoverseasdebtors,onaccountofspecialdiscountduetosteepfallinthenaturalgumpricesandqualityissuesamountingto`8,369.43Lacs,pendingfinalreconciliationandnecessaryapproval fromReserveBankof India.Thesamehasbeen included inotherpayablesunder“OtherCurrentliabilities.

46. a) TheCompanyhadentered intoaJointVentureAgreementdatedOctober12,2011 (“JVAgreement”)withFourceeInfrastructureEquipmentsPvt.Ltd.(FIEPL)forsettingupaPrivateFreightTerminalprovidingrailwaybasedlogisticservicesandotherfacilitiesatKashipur,UttarakhandthroughKashipurInfrastructureandFreightTerminalPvt.Ltd.(“JVCompany”).TheCompanyandFIEPLequallyhold50%stakeintheJVCompany.TheCompanyhasinvested` 0.50Lacs(PreviousYear` 0.50Lacs)inJVCompanytillMarch31,2014andintermoftheJVagreementhasalsotransferred33.404acresoflandworth` 1,462.59LacsintheJVCompanytowards itsequitycontributionasshareapplicationmoney,which ispending forallotmentofequityshares.On26thDecember, 2013, theCompanyhas servedanoticeon theother partner for terminationof the JVagreement.Pursuanttothesaidnotice,followupactions,arebeingtaken.Onthisaccount,thecompanydoesnotexpectanymaterialimpactonthestateofaffairs.

b) In compliancewith Accounting Standard 27 on Financial Reporting of Interest in Joint Ventures, followingdisclosuresaremadeinrespectofjointlycontrolledentity-KashipurInfrastructureandFreightTerminalPrivateLimited,inwhichtheCompanyisajointventurer:

( ìnLacs)

31.03.2014 31.03.2013

CountryofIncorporation India

PercentageofShareinJointVenture 50%

Assets 2,126.26 721.37

Liabilities 2,126.26 721.37

Income - -

Expenditure 0.38 1.67

CapitalCommitment(Netofadvances) 989.87 1,258.45

47. SegmentInformation:A. InformationaboutBusinessSegments(PrimarySegments):

( ìnLacs)

Business Segments Others Unallocable Total

IndustrialChemicals Liquor

31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013

A REVENUE

1 GrossSales(External) 270,991.12 3,09,062.42 66,746.49 67,184.33 5,608.99 7,413.88 - - 343,346.60 3,83,660.63

2 OtherIncome 977.12 602.70 99.76 913.76 558.04 486.37 2,894.82 1,278.27 4,529.74 3,281.10

3 TotalRevenue 271,968.24 3,09,665.12 66,846.25 68,098.09 6,167.03 7,900.25 2,894.82 1,278.27 347,876.34 3,86,941.73

B RESULTS

1 SegmentResult(PBIT) 1,916.76 37,045.59 1,769.24 3,437.26 817.86 612.45 (8,129.93) (11,322.90) (3,626.07) 29,772.40

2 InterestExpense(Net) 13,353.20 13,272.46

3 ProfitBeforeTax (16,979.27) 16,499.94

ProvisionforCurrentTax(netofMATcredit)

- -

DeferredTax (5,024.79) 4,386.01

4c Taxationprovisionofearlier year

- 20.19

5 ProfitafterTax (11,954.48) 12,093.74

C OTHER INFORMATION:

1 SegmentAssets 2,21,084.45 2,03,974.88 16,798.34 14,245.79 22,026.79 20,898.00 60,949.26 57,270.45 3,20,858.84 2,91,639.13

2 SegmentLiabilities 60,601.10 47,684.29 3,167.34 2,116.16 1,461.20 2,620.85 2,05,071.67 1,81,064.49 2,70,301.31 2,43,481.03

3 CapitalExpenditure 9,987.45 16,638.06 1,105.45 307.81 1,507.67 1,598.56 194.50 94.52 12,795.07 18,638.95

4 DepreciationandAmortisationexpenses

6,883.65 6,946.08 248.34 244.62 786.42 692.11 366.06 360.34 8,284.47 8,243.15




B.InformationaboutGeographicalSegments(SecondarySegments): (ìnLacs)

Domestic Overseas Total31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013

1 GrossSales(External)

2,23,805.03 2,06,464.04 1,19,541.57 1,77,196.59 3,43,346.60 3,83,660.63

2 SegmentAssets 2,35,052.29 2,24,448.02 24,857.29 14,670.65 2,59,909.58 2,39,118.67

Notes: Primary Segment reporting (by business segment)

Segments have been identified in linewith Accounting Standard on ‘SegmentReporting’ (AS-17), takingintoaccounttheorganisationalstructureaswellasthedifferentialrisksandreturnsofthesesegments.TheCompanyhasidentifiedthreesegmentsi.e.businessIndustrialchemical,Liquorandotherswhichincludesherbalproductsandreportedaccordingly.

Secondary Segment reporting (by geographical segment-customer location) Inrespectofsecondarysegment information, theCompanyhas identified itsgeographicalsegmentas(a)

domesticand(b)overseasonthebasisoflocationofcustomers. Reportable segments Reportablesegmentshavebeenidentifiedasperthequantitativecriteriaspecifiedin‘AccountingStandard

17:SegmentReporting’. Segment Composition Industrial Chemicals Segment comprisesGlycols, SpecialtyChemicals, NaturalGumand other related

goodsetc. Liquor SegmentcomprisesmanufactureandsaleofEthylAlcohol(Potable). ‘Others’primarilyincludesHerbalProductsandRental.

48. AdditionalInformation:A.a)PaymenttoAuditors(Exclusiveofapplicableservicetax) (` inLacs)

2013-14 2012-13i) As Auditors 15.00 15.00ii) Inothercapacityinrespectof

a)OutofPocketExpenses 1.76 1.49b)Certification 5.49 5.50

22.25 21.99

(b)CostAuditors(Exclusiveofapplicableservicetax) (` inLacs)2013-14 2012-13

i) Audit Fees 1.00 1.00ii) OutofPocketExpenses 0.10 0.16

1.10 1.16

B.(a)C.I.F.ValueofImports (` inLacs)

Particulars 2013-14 2012-13

1. CapitalGoods - 3.71

2. Stores&Spares 9,717.83 8,006.73

3. RawMaterials 27,457.09 18,076.25

4. Traded Goods 46,519.76 55,988.77

(b)EarninginForeigncurrency (` inLacs)Particulars 2013-14 2012-13FOBValueofExports–Goods 1,10,788.99 1,67,472.59




C CommodityandForeignExchangeDerivativesandexposures(ascertifiedbythemanagement). (a) Outstandingattheyear-endasfollows

Nature of Instruments 2013-14Amount

(FC in millions)

2013-14Amount

(` in Lacs)

2012-13Amount

(FCinmillions)

2012-13Amount

(` in Lacs)ForwardContracts-USD 28.35 17,985.08 - -Foreign currency options -USD - - 2.00 1086.00PackingCreditNetofExportdebtors-USD - - 46.20 25,092.00Open foreign exchange exposures:Loans-USD 50.66 30,358.40 58.01 31,503.07Payable-USD-EURO-JPY-CHF

53.530.031.330.01

32,077.3022.817.762.96

58.050.011.000.01

31,512.685.045.772.50

(b) Exchangefluctuationgainof` 0.62Lacs(PreviousYearlossof` 6,505.09Lacs),isnetoflossof` 0.20Lacs(PreviousYeargainof` 1,652.91Lacs).(Alsorefernotes44and45).

(c) TheCompanyusesderivativeinstrumentsforhedgingpossiblelossesandexchangefluctuationlossis` 679.44Lacsnetoffgainof` 5,253.99Lacs(PreviousYear`1,746.57Lacsnetoffgainof` 618.13Lacs)whichisinclusiveoflossof` 343.04Lacs(PreviousYeargainof` 60.83Lacs)provisionformarktomarketgain/lossonaccountofalloutstandingfinancialtransactionsason31stMarch2014.

(d) ConsideringtheprincipleofprudenceandannouncementmadebyTheInstituteofCharteredAccountantsofIndia‘AccountingforDerivatives’inMarch,2008,theCompanyhasprovidedforanamountof 143.63Lacsincludedin(c)(PreviousYear` 6.58Lacs)onoutstandingcontractstotheStatementofProfit&Loss,onaccountofforeignexchangederivativeinstruments.

D. ExpenditureinForeignCurrency (` in Lacs)Particulars 2013-14 2012-13a) Travellingandothermatters 134.54 96.58b) Interest 507.40 1,219.25c) ProcessEngineeringandTechnicalAssistance - 5.92d) Advertisement/Subscription/Membership 50.51 48.13e) Commission 437.22 414.95f) Others 63.86 17.50

E. RemittanceinForeignCurrencyonDividendAccount(` in Lacs) 2013-14 2012-13AmountofFinalDividendRemitted* ` 0.88 Lacs `1.35Lacs

YeartowhichtheDividendrelatesYear ended

31st March 2013Yearended

31stMarch2012No.ofEquitySharesheldbyNon-residentshareholders 44200 45200

AmountofInterimDividendRemitted* - `1.76LacsYeartowhichtheDividendrelates - Yearended

31stMarch2013No.ofEquitySharesheldbyNon-residentshareholders - 44200

*ExcludingforthoseshareholdersforwhomdividendhasbeencreditedtotheirNREAccountsinIndia.

49. Previousyear’sfigureshavebeenregrouped/rearranged/recastwhereverconsiderednecessary.


AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerM.No.85155Place :Noida,UP Lalit Kumar Sharma Dated:22ndMay,2014 Company Secretary



STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956, RELATING TO SUBSIDIARY COMPANY

1.NameoftheSubsidiaryCompany IGLFinanceLtd. ShakumbariSugarand

Allied Industries Ltd

IGLChemInterna-

tionalPteLtd.

2.FinancialYearoftheCompanyendedon 31.3.2014 31.03.2014 31.03.2014

3.HoldingCompany’sInterest:

(a)NumberofSharesFullyPaid

(b)Extentofholding

1000000

100%

50112100

98.89%

100000

100%

4.Net aggregate amount of profit/(loss) of

the Subsidiary, so far as they concern

membersofHoldingCompany

(i)ForthesaidfinancialyearoftheSubsid-

iary:

(a) Dealt with in the accounts of Holding

Company

(b)NotdealtwithintheaccountsofHolding

Company

(ii) For the previous financial years of the

Subsidiary since It became theHolding

Company’sSubsidiary

Nil

(266.39) ` in Lacs

(13.31) ` in Lacs

Nil

(3,684.12) ` in Lacs

(12,330.85) ` in Lacs

Nil

(0.20)USDinLacs

(0.49)USDinLacs

5.ChangesintheHoldingCompany’sinter-

estintheSubsidiarybetweentheendof

the subsidiary and Holding Company’s

Financial year

NotApplicable NotApplicable NotApplicable

6. Material Changes which have occurred

betweentheendofthefinancialyearof

thesubsidiaryand theendof theHold-

ingCompany’s financial year in respect

ofthesubsidiary’s:

(i)FixedAssets

(ii)Investments

(iii)Moneylentbysubsidiary

(iv) Money borrowed by the subsidiary

for any purpose other than that of

meetingcurrentliabilities

NotApplicable NotApplicable NotApplicable



INDEPENDENT AUDITOR’S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTSTO THE BOARD OF DIRECTORS OF INDIA GLYCOLS LIMITED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF INDIA GLYCOLS LIMITED, IT’S SUBSIDIARIES AND IT’S JOINT VENTUREWehaveauditedtheaccompanyingConsolidatedFinancialStatementsofIndiaGlycolsLimited,itssubsidiariesanditsjointventure(collectivelyreferredtoas“theGroup”),whichcomprisestheConsolidatedBalanceSheetasat31st March2014 and also theConsolidatedStatement of Profit andLossand theConsolidatedCashFlowStatement for theyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.Management’s Responsibility for the Consolidated Financial StatementsManagement is responsible for the preparation of theseConsolidatedFinancialStatements thatgivea trueand fairview of the consolidated financial position, consolidatedfinancial performance and consolidated cash flows of theGroup in accordance with accounting principles generally accepted in India. This responsibility includes the design,implementationandmaintenanceofinternalcontrolrelevantto the preparation and presentation of the ConsolidatedFinancialStatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Auditor’s ResponsibilityOur responsibility is to express an opinion on theseConsolidatedFinancialStatementsbasedonouraudit.Weconducted our audit in accordancewith theStandards onAuditingissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsrequirethatwecomplywithethicalrequirements and plan and perform the audit to obtainreasonable assurance about whether the ConsolidatedFinancialStatementsarefreefrommaterialmisstatement.An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in theConsolidatedFinancialStatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentof the risks of material misstatement of the ConsolidatedFinancialStatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevant to the group preparation and presentation of theConsolidatedFinancialStatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthegroupinternalcontrol.An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of theaccounting estimates made by management, as well asevaluating the overall presentation of the ConsolidatedFinancialStatements.WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionBasis for Qualified OpinionAttention is invited to:• Note no 47 regarding non provision against total

exposure amounting to ` 14,503.44 lacs in NSEL,where the management is confident about itsrecoverabilityforthereasonasstatedinsaidnote,andourinabilitytocommentthereon.

Net Profit for the year, loans & advances and reserve &surplusarewithoutconsideringtheabovewhichcannotbe

ascertainedorotherwiseforthereasonstatedinparaabove.Qualified OpinionIn our opinion and to the best of our information andaccording to the explanations given to us, except forthe possible effects of the matter described in theBasis for Qualified Opinion paragraph and based onthe consideration of the reports of the other auditors on thefinancialstatementsof thesubsidiariesandthe jointventure as noted below, the Consolidated FinancialStatementsgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:• inthecaseoftheConsolidatedBalanceSheet,ofthestate

of the affairs of the company as at 31st March 2014,• incaseoftheConsolidatedStatementoftheProfitand

Loss,ofthelossfortheyearendedonthatdate,and• incaseoftheConsolidatedCashFlowStatement,of

thecashflowsfortheyearendedonthatdate.Emphasis of MatterAttention is invited to the following notes related withsubsidiaryShakumbariSugar&AlliedIndustriesLimited:-• NoteNo.38regardingpendingconfirmation/reconciliation

of balances of debtors, creditors, Loans & Advances(includingcapitaladvances),otherliabilitiesandprovisionand internalcontrolneed tobe furtherstrengthened forthereasonsasstatedinthesaidnoteandconsequentialimpactwhereofpresentlycannotbeascertained.

• NoteNo.36regardingpendingverificationandupdationofrecordsoffixedassetsasstatedinthesaidnote.

Other Matters• Wedidnotauditthefinancialstatementsofthesubsidiary

companyM/sIGLFinanceLimitedandM/sIGLCHEMINTERNATIONAL PTE LIMITED whose financialstatements reflect totalassetsof` 15,359.28Lacsat31stMarch2014,totalrevenuesof`4,424.73Lacsandnetcashflowof` 51.82Lacsfortheyearthenended.The said financial statements have been audited byotherauditor,whosereporthasbeenfurnishedtousbythemanagementandouropinion,insofarasitrelatesto these subsidiaries is based solely on the report oftheir auditors and further information and explanationprovidedtousandrelieduponbyus.

• We did not audit the financial statements of the jointventureM/sKashipurInfrastructureandFreightTerminalPvt.Ltd.whosefinancialstatementsreflecttotalassetsof`4,252.52Lacsasat31stMarch2014,totalrevenuesofNilandnetcashflowof`(55.70)Lacsfortheyearthenended.Thesaidfinancialstatementshavebeenauditedbyotherauditor,whosereporthasbeenfurnishedtousbythemanagementandouropinion,insofarasitrelatestothisjointventureisbasedsolelyonthereportoftheirauditorsandfurtherinformationandexplanationprovidedtousandrelieduponbyus.

• FinancialstatementsofonesubsidiarycompanynamelyShakumbariSugar&AlliedIndustriesLimited,whosefinancialstatementreflect totalassetsof`16,464.62Lacs as at 31st March 2014 and total revenue of ` 10,729.59Lacsandnetcashflowof` (534.72)Lacsfortheyearthenended,havebeenauditbyus.

For Lodha & Co.CharteredAccountants

FRN:-301051E

(N.K. Lodha)Date:22ndMay,2014 PartnerPlace:Noida,UP M.No.85155



Consolidated Balance Sheet as at 31st March, 2014

Schedule As at As at 31.03.2014 31.03.2013EQUITY AND LIABILITIESShareholders’ FundsShareCapital 2 3,096.15 3,096.15ReservesandSurplus 3 34,149.21 50,485.47 37,245.36 53,581.62Non-current LiabilitiesLong-termborrowings 4 70,929.57 71,709.14Deferredtaxliabilities(Net) 5 10,654.44 15,679.23OtherLong-termliabilities 6 874.61 707.14Long-termprovisions 7 365.13 321.08 82,823.75 88,416.59Current LiabilitiesShort-termborrowings 8 111,007.17 84,014.15Tradepayables 49,113.80 51,675.31Othercurrentliabilities 9 43,434.48 32,853.56Short-termprovisions 7 661.37 1,242.38 204,216.82 169,785.40TOTAL 324,285.93 311,783.61ASSETSNon-current AssetsFixed Assets Tangibleassets 10 127,678.95 118,196.60 Intangibleassets 10 229.97 376.66GoodwillonConsolidation 3,039.30 3,039.30Capitalwork-in-progress 13,693.48 20,137.73Intangibleassetsunderdevelopment 50.00 50.00Non-currentinvestments 11 404.11 188.11Long-termloansandadvances 12 5,826.99 6,362.94Othernon-currentassets 13 324.23 635.53 151,247.03 148,986.87Current AssetsCurrentInvestments 11 9.80 17,192.21Inventories 14 58,674.52 57,078.64Tradereceivables 44,060.86 29,588.82CashandBankbalances 16 16,446.52 13,291.14Short-termloansandadvances 17 53,607.48 45,369.61Othercurrentassets 18 239.72 276.32 173,038.90 162,796.74TOTAL 324,285.93 311,783.61Summaryofsignificantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerM.No.85155Place :Noida,UP Lalit Kumar Sharma Dated:22ndMay,2014 Company Secretary

(` in lacs)



Summaryofsignificantaccountingpolicies 1

Theaccompanyingnotesareanintegralpartofthefinancialstatements.

AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerM.No.85155Place :Noida,UP Lalit Kumar Sharma Dated:22ndMay,2014 Company Secretary

Consolidated Statement of Profit & Loss for the year ended March 31, 2014

NoteNo. 2013-14 2012-13

Revenuefromoperations 19 297,657.20 342,256.42

Otherincome 20 1,931.66 1,063.82

Total Revenue 299,588.86 343,320.24

Expenses:

Costofmaterialsconsumed 21 155,861.00 172,714.62

PurchaseofStock-in-Trade 22 51,030.79 56,172.71

Changeininventoriesoffinishedgoods,work-in-progress 23 1,032.09 (2,627.46)

andStock-in-trade

Employeebenefitexpense 24 8,676.69 8,912.37

Financecosts 25 15,034.27 15,009.16

Depreciationandamortizationexpense 10 9,060.77 9,017.73

Otherexpenses 26 60,883.04 70,159.28

Total Expenses 301,578.65 329,358.41

Profit/ (Loss) before exceptional items and tax (1,989.79) 13,961.83

ExceptionalItems(Net) 42 19,172.62 -

Profit/ (Loss) before tax (21,162.41) 13,961.83

TaxExpense:

-CurrentTax - 3,301.56

-DeferredtaxCharged/(Credit) (5,024.79) 4,386.01

-Taxforearlieryears (1.83) 21.87

-MinimumAlternateTaxCreditentitlement - (3,300.48)

Profit/ (Loss) for the period (16,135.79) 9,552.87

Earning per Equity share basic/ diluted (52.12) 32.46

(` in lacs)



Consolidated Cash Flow Statement for the year ended 31st March, 2014 2013-14 2012-13

A Cash Flow from Operating Activities

NetProfit/(Loss)BeforeTax (21,162.41) 13,961.83

AdjustmentsFor:

Depreciation 9,060.77 9,017.73

(Profit)/LossonSaleofAssets (168.51) 90.62

UnrealisedForeignExchangeFluctuation(Gain)/Loss (1,376.46) 73.60

AmortisationofForeignCurrencyMonetaryItemTranslationDifference 1,832.88 2,009.64

EffectofExchangeDifferenceonTranslationofForeignCurrencyCash

&CashEquivalent 0.08 0.07

Preoperativeexpenseswrittenoff - -

(Profit)/LossonSaleofCurrentInvestments (883.59) (82.41)

ProvisionforDiminutioninValueofCurrentInvestments 0.20 -

ReversalofProvisionforDiminutioninValueofCurrentInvestments - (3.17)

ProvisionforDiminutioninValueofCurrentInvestment - -

BadDebtsW/Off&ProvisionforDoubtfulDebts&Advances 8,406.99 9.21

ProvisionNoLongerRequiredWrittenBack (49.51) (27.13)

FinanceCosts 15,849.57 17,134.30

Interest/DividendIncome (1,571.30) 31,101.12 (3,063.27) 25,159.19

Operating Profit/ (Loss) before Working Capital Changes 9,938.71 39,121.02

AdjustmentsFor:

(Increase)/DecreaseinTrade&OtherReceivables (29,753.06) 7,591.52

(Increase)/DecreaseinInventories (1,595.88) 12,852.99

Increase/(Decrease)inTrade&OtherPayables (1,499.50) (32,848.44) 27,025.37 47,469.88

Cash Generated from / (Used in) Operations (22,909.73) 86,590.90

IncomeTaxPaid(Net) (477.31) (4,871.26)

Net Cash flow from / (Used in) Operating Activities (23,387.04) 81,719.64

B Cash Flow from Investing Activities

PurchaseofFixedAssets (11,497.69) (16,834.90)

SaleofFixedAssets 1,282.20 782.53

Interest/Dividendreceived 1,438.02 3,932.42

ICDsreceivedback 1,695.45 4,929.55

Investmentsinsharesofsubsidiaries/jointventure* - 0.50

SaleofCurrentInvestments 18,555.80 1,583.08

Purchaseofcurrentinvestment (490.00) (17,100.00)

Net Cash flow from / (Used in) Investing Activities 10,983.78 (22,706.82)

(` in lacs)



2013-14 2012-13

Asperourreportofevendate

For Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E

N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerM.No.85155

Place :Noida,UP Lalit Kumar Sharma Dated :22ndMay,2014 Company Secretary

C Cash Flow from Financing Activities

ProceedsfromGovtsubsidy - 5.00

ProceedsfromIssueofShareCapital - 4,266.26

ProceedsfromBorrowings 108,859.18 88,936.51

RepaymentofBorrowings (81,544.30) (130,197.31)

FinanceCosts (17,719.81) (19,036.82)

DividendsPaid(IncludingCorporateDividendTax) (935.54) (2,176.32)

NetCashflowfrom/(Usedin)FinancingActivities 8,659.53 (58,202.68)

D Effect of Changes in Currency Fluctuation Reserve (25.15) (8.70)

E Effect of Exchange Differences on Translation of Foreign Currency (0.08) (0.07)

Cash & Cash Equivalent

F Share of Profit / (loss) in Joint Venture related to earlier year* - (0.19)

Net Increase/(Decrease) in Cash & Cash Equivalents [A+B+C+D+E+F] (3,768.96) 801.18

OpeningCash&CashEquivalent(refernote16) 5,977.06 5,175.88

ClosingCash&CashEquivalent(refernote16) 2,208.10 5,977.06

Note:

PreviousYear’sfigureshavebeenregroupedwhereverconsiderednecessary.

*Refernote1(vii)ofFinancialStatements

Consolidated Cash Flow Statement (Contd.)



Notes to Consolidated Financial Statements1. SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION(i) TheConsolidatedFinancialStatements(CFS)comprisesthefinancialstatementsofIndiaGlycolsLimited(IGL)

anditsfollowingSubsidiaries/JointVentureasonMarch31,2014.

Name of the Company Nature Country of Incorporation

% of Shareholding & Voting Power

ShakumbariSugar&AlliedIndustriesLimited(SSAIL) Subsidiary India 98.89%

IGLChemInternationalPTE.LTD. Subsidiary Singapore 100%

IGL Finance Limited Subsidiary India 100%

Kashipur Infrastructure and Freight Terminal PrivateLimited(KIFTPL)

JointVenture India 50%

(ii) TheConsolidatedFinancialStatementshavebeenpreparedusinguniformaccountingpoliciesandinaccordancewiththegenerallyacceptedaccountingpolicies(GAAP).

(iii) Theeffectsofintergroupbalancesandtransactionsareeliminatedinconsolidation.

(iv) ThedifferencebetweenthecoststotheHoldingCompanyofitsinvestmentintheSubsidiaryCompaniesovertheHoldingCompany’sportionofequityofthesubsidiariesisrecognizedinthefinancialstatementsasGoodwillorCapitalReserveasthecasemaybe.GoodwillarisenonconsolidationisshownunderFixedAssetsandCapitalReserveonconsolidationisshownunderReserve&Surplus.

(v) ThepolicyadoptedbySSAILforvaluationofInventoriesisenumeratedbelow:-

(a) FinishedGoodsandStockinProcessofSugar-Atcostoratnetrealisablevaluewhicheverislower,thenetrealizablevalueofsugarincaseoffinishedgoodsofstockoflevysugar,levypricenotifiedbyCentralGovernment.

(b) Storeandsparesparts–Atcostarrivedatapplyingweightedaveragemethod.

(c) Canecrop–Atnetrealisablevaluedeterminedonthebasisofestimatedyieldperhectare.

InventoryofMolasses,Bagasse,PressmudandBioCompostareconsideredatnetrealizablevalue.

(vi) ForeignSubsidiaryconversion:Operationofforeignsubsidiaryhasbeenconsiderednonintegralforeignoperationby themanagement thusallassetsand liabilitiesareconvertedat the ratesprevailingat theendof theyearandRevenueitemshavebeenconsolidatedattheaveragerates.Exchangegain/lossarisingontranslationoffinancialstatementsofforeignsubsidiariesareshownunderthehead‘ForeignCurrencyTranslationReserve’intheConsolidatedBalanceSheet.

(viii)InterestsinJointVenture(KIFTPL)hasbeenaccountedbyusingtheproportionateconsolidationmethodasperAccountingStandard27-“FinancialReportingofinterestsinJointVentures”notifiedbyCompanies(AccountingStandards)Rules,2006,eventhoughon26thDecember,2013,theCompanyhasservedanoticeontheotherpartnerforterminationoftheJVagreement.Pursuanttothesaidnotice,followupactions,arebeingtaken.Onthisaccount,thecompanydoesnotexpectanymaterialimpactonthestateofaffairs.

2. SHARE CAPITAL


Particulars As at As at 31.03.2014 31.03.2013

Authorised :

45,000,000(PreviousYear45,000,000)EquitySharesof` 10/-each 4,500.00 3,000.00

4,500.00 3,000.00

Issued, Subscribed and paid up : 30,961,500(PreviousYear30,961,500)EquityShares 3,096.15 3,096.15of`10/-eachfullypaidup

3,096.15 3,096.15



Notes to Consolidated Financial Statementsa) Terms/rights attached to equity shares:

TheCompanyhasonlyoneclassofsharesreferredtoasequityshareshavingaparvalueof` 10/-pershare.Eachholderofequitysharesisentitledtoonevotepershare.

Intheeventofliquidationofthecompany,theholdersofequityshareswillbeentitledtoreceiveremainingassetsofthecompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders.

b) Details of shareholders holding more than 5% shares in the company

Name of Shareholder 31.03.2014 31.03.2013 No’s No’s

KashipurHoldingsLimited 10,287,406 98,69,303

SajaniDeviBhartia 2,100,249 2,100,249

c) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars 31.03.2014 31.03.2013 No’s No’s

Sharesoutstandingasatthebeginningoftheyear 30,961,500 27,882,500

Additions during the year - 3,079,000

Deletionsduringtheyear - -

Sharesoutstandingasattheendoftheyear 30,961,500 30,961,500

d) Inlast5yearstherewasnoBonusIssue,buybackand/orissueofsharesotherforcashconsideration.

3. RESERVES AND SURPLUS

( ìnLacs)

Asat Additions Deductions As at 01.04.2013 31.03.2014

CapitalReserve* 463.33 216.00 - 679.33

GeneralReserve 11,184.00 - - 11,184.00

StatutoryReserve 0.30 - - 0.30

SecurityPremium(Refernote30) 3,958.36 - - 3,958.36

MolassesReserveFund 1.64 0.25 - 1.89

ForeignCurrencyTranslationReserve 6.90 - 25.15 (18.25)

ReserveforContingencies 200.00 - - 200.00

SurplusinStatementofProfit&Loss[Referfootnote(a)] 36,917.56 - 16,498.28 20,419.28

SubTotal(a) 52,732.09 216.25 16,523.43 36,424.91

ForeignCurrencyMonetaryItemTranslationDifference

(DebitBalance) (2,246.62) (1,861.96) (1,832.88) (2,275.70)

SubTotal(b) (2,246.62) (1,861.96) (1,832.88) (2,275.70)

Total 50,485.47 (1,645.71) 14,690.55 34,149.21

Previousyear 38,597.90 13,260.71 1,373.14 50,485.47



March 31, 2014 March31,2013

(a) Detail of Surplus in the Statement of Profit & Loss

Openingbalance 36,917.56 30,738.96

Less:Shareoflossinjointventurerelatedtoearlieryears - (0.19)Add:NetProfit/(Loss)aftertaxtransferredfromStatementofProfitandLoss (16,135.79) 9,552.87

20,781.77 40,291.64

Less:Appropriations

ProposedDividend** 309.62 619.23

InterimDividend** - 1,238.46

CorporateDividendTax 52.62 306.15

TransfertoMolassesReserveFund 0.25 0.84

Transfertogeneralreserve - 1,209.40

Net Surplus in the Statement of Profit & Loss 20,419.28 36,917.56

20,419.28 36,917.56

*Thesubsidiarycompany,IGLFinanceLimited,washavingaprovisionof`416.00LacstowardsdiminutioninthevalueofinvestmentsinthePreferenceShareCapitalofHindustanWiresLimited.Duringtheyear,theentireamountsoinvestedwasreceivedbackonredeemptionofPreferenceShareCapital.However,furtherinvestementofthesimilaramountwasmadeinthePreferenceShareCapitalofthesaidCompanybythesubsidiarycompany.BaseduponthelatestauditedfinancialsofHindustanWiresLimited.,thesubsidiarycompanyiskeepingtheprovisionof`200.00Lacstowardsdiminutioninthevalueofthesaidinvestmentandaccordingly`216.00LacshasbeenwrittenbackdirectlytoCapitalReserve,asinthepreviousyearsthelosses,includingprovisions,wereadjustedtoCapitalAccountpursuanttotheSchemeofArrangementasapprovedbytheHon’bleHighCourt.**TheBoardofDirectors,proposedafinaldividendof`1(Previousyear`2)perequityshare.TheBoardofDirectors,during theyear,hasalsodeclaredandpaid interimdividendofNil (PreviousYear`4)perequityshare.The totaldividendappropriationfortheyearendedMarch31,2014amountedto`362.24Lacs(PreviousYear`2163.84Lacs)includingcorporatedividendtaxof`52.62Lacs(PreviousYear`306.15Lacs).

4. LONG TERM BORROWINGS

( ìnLacs)

Non-Current Portion Current Maturities

As at As at As at As at 31.03.2014 31.03.2013 31.03.2014 31.03.2013

SECURED LOANS

Rupee Term Loans

fromBanks 39,549.39 46,821.69 19,760.33 15,739.15

otherthanBanks 2,707.23 2,748.04 295.74 293.66

ForeignCurrencyTermLoansfromBanks 21,762.71 14,045.67 3,282.31 5,122.09

64,019.33 63,615.40 23,338.38 21,154.90

UNSECURED LOANS

Loanfromrelatedparties(BodyCorporates) 6,910.24 8,093.74 - -

6,910.24 8,093.74 - -

Less:Amountdisclosedunderthehead

“OtherCurrentLiabilities”(NoteNo.9) 23,338.38 21,154.90

70,929.57 71,709.14 - -

( ìnLacs)Notes to Consolidated Financial Statements



Notes: 1 TheTermLoans inter-se,aresecured / tobesecuredbymortgageofall immovablepropertiesof theCompanybothpresentand futureand

hypothecationofallmovablepropertiesoftheCompany(saveandexceptbookdebts)includingmovablemachinery,machineryspares,toolsandaccessories,bothpresentandfuturesubjecttopriorchargescreatedand/ortobecreatedinfavourofthebankersoftheCompanyonstocks,bookdebtsandotherspecifiedmovablepropertiesforworkingcapitalrequirements/BuyersCredit.

2 RupeeTermLoansincludesloansfromBanksof 32.13Lacs(PreviousYear 56.86Lacs)andloansfromothersof 10.64Lacs(PreviousYear 45.52Lacs)securedbyhypothecationofMotorVehiclespurchasedthereunderwhichisrepayableondifferentdates.Further,RupeeTermLoansfromothersincludes`708.75Lacs(PreviousYear`450.00Lacs)securedagainstbankguarantee.

3 Outoftheabove,termloanof`1,975.77Lacs(Previousyear`2,509.43Lacs)inrespectofsubsidiarycompanyaresecuredbyafirstparipassuchargecreatedonmovable(includingbookdebts)andimmovablepropertiesbothpresentandfutureofsubsidiarycompany’splantsituatedatSaharanpurinthestateofUttarPradeshandtermloanof`2,083.29Lacs(Previousyear`2,708.30Lacs)aresecuredbyafirstparipassuchargecreatedonmovableandimmovablepropertiesbothpresentandfutureofsubsidiarycompany’splantsituatedatSaharanpurinthestateofUttarPradesh.TheaboveLonasarefurthersecuredbycorporateguaranteesofIndiaGlycolsLtd.(TheHoldingCompany).

4 Loan fromSugarDevelopmenet Fund (included in Loans from others) is secured by bank guarantee,which is further secured by corporateguaranteesofIndiaGlycolsLtd.(TheHoldingCompany)

5 TermLoanfrombankof`2,500.00Lacs(PreviousYear`5,000.00Lacs),isrepayablein4equalquarterlyinstallments.6 TermLoanfrombankof`4,978.47Lacs(PreviousYear`4,978.47lacs),isrepayablein11equalquarterlyinstallmentsof`417.00Lacsand1

installmentof`391.47lacscommencingfromSeptember2014.7 TermLoanfrombankof`10,000.00Lacs(PreviousYear`7,500.00Lacs),isrepayablein12equalquarterlyinstallmentscommencingfromApril

2015.8 TermLoanfrombankof`2,499.60Lacs(PreviousYear`2,500.00Lacs),isrepayablein12equalquarterlyinstallmentscommencingfromMay

2015.9 TermLoanfrombankof`2,915.00Lacs(PreviousYear`4,583.00Lacs),isrepayablein6quarterlyinstallments(4installmentsof`417.00Lacs

eachandremaining2installmentsof`623.50Lacseach).10 TermLoan frombankof` 1,637.28Lacs (PreviousYear` 3,329.86Lacs) is repayable in4equal quarterly installments. It includesForeign

CurrencyLoanof`898.80Lacs(USD15.00Lacs)(PreviousYear` 1,656.46Lacs,USD30.50Lacs).11 TermLoanfrombankof`1,458.33Lacs(PreviousYear`2,291.67Lacs),isrepayablein7equalquarterlyinstallments.12 TermLoanfrombankof`3,093.75Lacs(PreviousYear`4,218.75Lacs),isrepayablein11equalquarterlyinstallments.13 TermLoanfrombankof` 2,380.00Lacs(PreviousYear`2,809.00lacs),isrepayablein66equalmonthlyinstallmentsof`35.75Lacseachand

remaining1installmentsof`20.50Lacs.14 TermLoanfrombankof`2,187.50Lacs(PreviousYear`2,625.00Lacs),isrepayablein10equalquarterlyinstallments.15 TermLoanfrombankof` 1,875.00Lacs(PreviousYear` 2,500.00Lacs),isrepayablein6equalquarterlyinstallments.16 TermLoanfrombankof`2,233.46Lacs(PreviousYear`2,436.50Lacs),isrepayablein11equalquarterlyinstallments.17 TermLoanfrombankof`2,500.00Lacs(PreviousYear`5,000.00Lacs),isrepayablein4equalquarterlyinstallments.18 TermLoanfrombankof`3,432.95Lacs(PreviousYear` 3,982.96Lacs),isrepayablein12equalquarterlyinstallmentsof`275.00Lacseach

andremaining1installmentsof`132.95Lacs.19 TermLoanfrombankof`4,375.00Lacs(PreviousYear` 5,000.00Lacs),isrepayablein7equalquarterlyinstallments.20 TermLoanfrombankof` 2,551.00Lacs(PreviousYearNil),isrepayablein12equalquarterlyinstallmentscommencingfromJuly2015.21 TermLoanfrombankof` 5,000.00Lacs(PreviousYearNil),isrepayablein16equalquarterlyinstallmentscommencingfromOctober2014.22 TermLoanfrombankofNil(PreviousYear` 187.50Lacs).23 TermLoanfrombankof` 3,761.38Lacs(USD62.77Lacs)(PreviousYear`4,924.43Lacs,USD90.67Lacs),isrepayablein10equalquarterly

installments.24 TermLoanfrombankof 868.30Lacs(USD14.49Lacs),(PreviousYear 1,784.61Lacs,USD32.86Lacs),isrepayablein3quarterlyinstallments

of`250.00Lacseachandremaining1installmentsof` 118.30Lacs.25 TermLoanfrombankof`9,315.15Lacs(USD155.46Lacs)(PreviousYear` 10,802.26Lacs,USD198.90Lacs),isrepayablein10monthly

installments(3equalmonthlyinstallmentsof 583.33Lacs,3equalmonthlyinstallmentsof 833.33Lacs,3equalmonthlyinstallmentsof 856.67Lacsandbalanceinlastinstallment).

26 TermLoanfrombankof` 10,201.38Lacs(USD170.25Lacs)(PreviousYearNil), isrepayablein37monthlyinstallments(33equalmonthlyinstallmentsof`271.67Lacs,3equalmonthlyinstallmentsof`345.00Lacsandbalanceinlastinstallment).

27 TermLoanfromDBTBihorama` 450.00Lacs(PreviousYear` 450.00Lacs)isrepayablein9equalhalfyearlyinstallment.28 TermLoanfromDBTBihorama` 258.75Lacs(PreviousYearNil)isrepayablein10equalhalfyearlyinstallmentaftercompletionoftheproject.29 Loanfromrelatedpartiesof` 6,910.24Lacs(PreviousYear` 8,093.74Lacs)ispayableafteraperiodof3yearsfromtherespectivedateofloans.30 TermloanfromBanksof` 1,956.92Lacs(Previousyear` 2,490.58Lacs)isrepayablein11equalquarterlyinstallmentsof` 177.90Lacseach.31 TermloanfromBanksof` 2,083.29Lacs(Previousyear` 2,708.30Lacs)isrepayablein10equalquarterlyinstallmentsof` 208.33Lacseach.32 TermloanfromBanksof` 18.85Lacs(Previousyear` 18.85Lacs)isrepayablein2quarterlyinstallment1stof` 10.11Lacsand2ndquarterly

installmentof`8.74Lacs.33 TermLoanfromSugarDevelopmentFundof`Nil(Previousyear`77.50Lacs)34 TermLoanfromSugarDevelopmentFundof`277.66Lacs(Previousyear`462.76Lacs)isrepayablein3halfyearlyinstallmentsof`92.55Lacs

each.35 TermLoanfromSugarDevelopmentFundof` 1,740.42Lacs(Previousyear` 1,740.42Lacs)isrepayablein5equalyearlyinstallmentsof`

348.08Lacseachstartedfromyear2017.36 TermLoanfromSugarDevelopmentFundof`265.50Lacs(Previousyear` 265.50Lacs)isrepayablein4equalyearlyinstallmentsof` 66.38

Lacseachstartedfromyear2016.37 Outoftheabove,termloanfrombankof` 500.00Lacs(beingshareinJointVenture[JV])issecuredbyfirstchargeoverallthefixedassets

(movable&immovable)includingmortgageoverProjectlandofJV,pledgeofotherjointventurer’sshareholdingtotheextentof30%,firstchargeonall theJV’saccount includingDSRA&Escrowaccountandassignmentof insurancepoliciesofassets.Thesame ispayable in34equalquarterlyinstalmentscommencingfromApril2015.However,thecreationofnecessarychargesbywayofhypothecationisinprocess

Notes to Consolidated Financial Statements



5. DEFERRED TAX LIABILITIES (NET)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

PursuanttotheAccountingStandardon“AccountingfortaxesonIncome“(AS-22)deferredtaxliability/assetsareas:

Deferred Tax Assets :-

AmountcoveredU/s43B 236.95 303.97

Provisionfordoubtfuldebts 2,872.99 28.68

UnabsorbedDepreciation 4,149.00 -

BusinessLoss 496.85 -

Others 209.94 91.73

Gross Deferred tax Assets 7,965.73 424.38

DeferredTaxLiabilities:-

Accelerated depreciation 17,510.05 15,042.88

Others 1,110.12 1,060.73

Gross Deferred tax Liability 18,620.17 16,103.61

Net Deferred Tax Liability 10,654.44 15,679.23

6. OTHER LONG TERM LIABILITIES

( ìnLacs)

As at As at 31.03.2014 31.03.2013


RetentionMoney 52.92 14.11

Securitydeposits-RealEstate 565.27 526.14

874.61 707.14

7. PROVISIONS

( ìnLacs)

Long-Term Short-Term As at As at As at As at 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Provision for employee benefitsProvisionforGratuity - - 127.12 356.08ProvisionforLeaveEncashment 365.13 321.08 162.90 153.17 365.13 321.08 290.02 509.25Others:Proposedequitydividend - - 309.62 619.23Provisionfortaxonproposedequitydividend - - 52.62 105.24ProvisionforFringeBenefitTax{(Netofadvancetax`38.65Lacs)(PreviousYear`38.65Lacs)} - - 0.26 0.26ProvisionforWealthTax - - 8.85 8.40 - - 371.35 733.13 365.13 321.08 661.37 1,242.38




8. SHORT TERM BORROWINGS

( ìnLacs)

As at As at 31.03.2014 31.03.2013

SECURED LOANS

LoansrepayableondemandfromBanks:

BuyersImportCredit* 31,653.31 23,247.35

WorkingCapitalLoans* 75,501.50 53,278.18

107,154.81 76,525.53

UNSECURED LOANS

ShortTermLoansfromrelatedparties 40.50 -

ShortTermLoansfromBanks 3,811.86 7,488.62

3,852.36 7,488.62

111,007.17 84,014.15

*WorkingCapitalLoansfromBanksaresecured/tobesecuredbywayofhypothecationofbookdebtsandstocksincluding in-transit and other specifiedmovable properties and second charge on all immovable properties of theCompany.BuyersCreditfacilityissecuredagainstnon-fundbasedfacilitysanctionedtotheCompany.

FurtherPackingcreditfacilityof` 1570.00Lacs(PreviousYearNil)(includedinworkingcapitalloans)arespecificallysecuredbypledgeofdeposit.

Outoftheabove,workingcapitalfacilityof`5,723.26Lacs(PreviousYear` 4727.44Lacs)isalsosecuredbythecorporateguaranteeofIndiaGlycolsLimited(TheHoldingCompany). 9. OTHER CURRENT LIABILITIES

( ìnLacs)

As at As at 31.03.2014 31.03.2013

Currentmaturitiesoflongtermborrowings(NoteNo4) 23,338.38 21,154.90


Duties,taxesandotherstatutorydues 1,982.29 2,040.75

CapitalPayables 1,845.29 2,328.18

AdvancefromCustomers 4,613.80 4,301.95

Retention money 254.94 381.40

Interestaccruedanddueonborrowings 99.93 -

Expensespayable(IncludingMTMonderivativecontracts) 1,542.78 543.13

OtherPayables(refernote42(b)) 9,433.16 1,465.67

Investoreducation&protectionfundshallbecreditedbythefollowingamountswhendue:

(i)UnclaimedDividends 121.29 332.36

(ii) Unclaimed matured deposits 4.16 6.86

(iii)Unclaimedinterestonabove(ii) 1.53 2.22

43,434.48 32,853.56




10. CONSOLIDATED FIXED ASSETS SCHEDULE

( ìnLacs)

Description Gross Carrying Amount Depreciation/ Amortization Net Carrying Amount

Asat Additions* Sales/ As at Asat Forthe Sales/ As at As at As at

01.04.2013 Other 31.03.2014 01.04.2013 year$ Other 31.03.2014 31.03.2014 31.03.2013

Adjust- Adjust-

ments ments

Tangible assets

FreeholdLand 2,090.55 587.89 930.80 1,747.64 - - - - 1,747.64 2,090.55

LeaseholdLand 1,418.18 109.53 - 1,527.71 151.84 16.82 - 168.66 1,359.05 1,266.34

Buildings 18,632.20 1,389.35 -20,021.55 2,492.48 375.30 - 2,867.78 17,153.77 16,139.72

PlantandMachinery 159,173.29 16,709.47 38.92175,843.84 64,870.59 8,036.68 34.20 72,873.07 102,970.77 94,302.70

OfficeEquipment 2,317.65 57.60 266.98 2,108.27 1,350.09 144.46 238.76 1,255.79 852.48 967.56

FurnitureandFixtures 3,323.89 635.11 218.89 3,740.11 695.17 242.51 183.50 754.18 2,985.93 2,628.72

Vehicles# 1,285.43 21.39 181.54 1,125.28 484.42 111.01 79.46 515.97 609.31 801.01

Total(A) 188,241.19 19,510.34 1,637.13206,114.40 70,044.59 8,926.78 535.92 78,435.45127,678.95118,196.60

Intangibleassets

Computersoftware 1,063.92 - 249.60 814.32 687.26 134.21 237.12 584.35 229.97 376.66

Total(B) 1,063.92 - 249.60 814.32 687.26 134.21 237.12 584.35 229.97 376.66

GrandTotal(A)+(B) 189,305.11 19,510.34 1,886.73206,928.72 70,731.85 9,060.99 773.04 79,019.80 127,908.92

Previousyear 178,532.38 12,403.10 1,630.37189,305.11 62,471.10 9,017.97 757.22 70,731.85 118,573.26

Notes:

*(i)AdditiontoPlantandMachineryincludesforeignexchangefluctuationdifferencearisingunderAS-11(Theeffectofchangesinforeignexchange

rates)videnotificationno.G.S.R225(E)dated31stMarch,2009issuedbyMinistryofcorporateaffairsofGovernmentofIndiaasamendedby

Companies(AccountingStandards)(SecondAmendment)Rules2011.

*(ii)Includescapitalisationof:

(a)Financecost:Plant&Machiery`2,361.03Lacs(PreviousYear`584.51Lacs).

(b)Exchangedifference:PlantandMachinery`962.10Lacs(PreviousYear`419.89Lacs).

#Grossblockincludes`130.39Lacs(PreviousYear`367.58Lacs)securedbyhypothecationagainstloan

$Depreciationamountingto`0.22lacs(PreviousYear`0.24lacs)hasbeencarriedforwardasprojectpreoperativeexpensesbyjointventureandthe

sameisnotchargedtoStatementofProfitandLoss.

Note:

OpeningGrossBlock&AccumulateddepreciationofForeignSubsidiary,IGLChemPTELIMITED,Singapore,ason31stMarch,2013isreinstatedas

perAS-11andamountof`0.72Lacs(PreviousYear`0.20Lacs)(Netofdepreciationof`0.24Lacs,PreviousYear`0.27lacs)isadjustedinForeign

CurrencyTranslationReserve.




11. INVESTMENTS



Non-Current Investments

Long Term, Non-Trade Investment - At Cost less provision

Quoted, fully paid up - Others

211,360(PreviousYear211,360)EquitySharesofIDBIBankLtd ` 10 105.00 105.00

34,000(PreviousYear34,000)EquitySharesofAxisBankLtd. ` 10 7.14 7.14

2,500(PreviousYear2,500)EquitySharesofICICIBankLtd. ` 10 1.97 1.97

114.11 114.11

Investment in Preference Share (Unquoted, fully paid up)

4,68,000(PreviousYear4,68,000)15%RedemableNon-cumulative

PreferenceSharesofHindustanWiresLtd ` 100 468.00 468.00


22,00015%RedemableNon-cumulativePreference

SharesofHindustan

WiresLtd ` 100 22.00 22.00


290.00 74.00

Total Non - Current investments 404.11 188.11

AggregatedbookvalueofUnquotedinvestment 290.00 74.00

Aggregatedbookvalueofquotedinvestment 114.11 114.11

Marketvalueofquotedinvestments 700.53 704.46

AggregateprovisionmadeforDiminuitioninvalueofInvestments 200.00 416.00

Current Investments - at the lower of cost or fair value

Others- Quoted, fully paid up (Non- Trade Investment)


Nil(PreviousYear5,000,000)BirlaSunLifeFixedTerm

PlanSeriesFKGrowth ` 10 - 500.00

Nil(PreviousYear5,000,000)ICICIPrudentialFMP

Series64-367daysPlanDCumulative ` 10# - 500.00

Nil(PreviousYear10,000,000)ICICIPrudentialFMP

Series64-367daysPlanBCumulative ` 10# - 1,000.00

- 2,000.00




11. INVESTMENTS (Contd..)



Others-Unquoted, fully paid up (Non- Trade Investment)


Nil(PreviousYear668,518)UTIBondsFund-DividendPlan ` 10 # - 82.21

Nil(PreviousYear1,510,779)KotakBondPlanA-Growth ` 10# - 500.00

Nil(PreviousYear28,200,859)SBIDynamicBondFund-Growth ` 10# - 4,000.00

Nil(PreviousYear16,531,658)RelianceDynamicBondFund-Growth ` 10# - 2,500.00

Nil(PreviousYear12,261,453)DWSShortMaturityFundReg-Growth ` 10# - 2,500.00

Nil(PreviousYear1,949,367)BirlaSunLifeIncomePlus-Growth ` 10# - 1,000.00

100,000(PreviousYear100,000)SBIGoldFund-Growth ` 10 # 9.80 10.00

Nil(PreviousYear5,276,047)RelianceIncomeFund-Growth ` 10# - 2,000.00

Nil(PreviousYear7,232,227)IDFCDynamicBondPlan

B-Growth(Regular) ` 10# - 1,000.00

Nil(PreviousYear7,192,434)IDFCDynamicBondPlan

B-Growth(Direct) ` 10# - 1,000.00

Nil(PreviousYear552,614)IDFCMoneyManager-Growth ` 10# - 100.00

Investments in Pass Through Certificates (PTCs) - -

Nil(PreviousYear500)GoldLoanReceivableTrust-II,by

IDBITrusteeshipServicesLtd. `100000 - 500.00

9.80 15,192.21

Total Current Investments 9.80 17,192.21

Aggregatedbookvalueofunquotedinvestment 9.80 15,192.21

Aggregatedbookvalueofquotedinvestment - 2,000.00

MarketValueofquotedinvestment - 2,180.41

AggregateprovisionmadeforDiminuitioninvalueofInvestments 0.20 -

#Pledgedwithbanksassecurityagainstborrowings.

12. LONG TERM LOANS & ADVANCES(Unsecured,consideredgoodunlessstatedotherwise)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

CapitalAdvances 3,137.82 2,267.00

SecurityDeposits@ 2,537.10 2,190.35

InterCorporateDeposits - 1,695.45

OtherLoans&advances* 152.07 210.14

(Includes `0.66Lacs(PreviousYear`1.41Lacs)duefromadirector) 5,826.99 6,362.94

*Prepaidexpensesandloanstoemployees

@ Includes ` 760.00 lacs (PreviousYear ` 480.00 Lacs) security deposit to director, private companies inwhichdirector/directorsofcompanyisdirectorandarealsorelatedparties.




15. TRADE RECEIVABLES(Unsecured,consideredgoodunlessstatedotherwise)

( ìnLacs)

As at As at 31.03.2014 31.03.2013(a)Outstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment -Consideredgood 2,744.07 606.55 -Doubtful 63.32 64.67(b)Other(ConsideredGood) 41,316.79 28,982.27 44,124.18 29,653.49Less:ProvisionforDoubtfuldebts 63.32 64.67 44,060.86 29,588.82

13. OTHER NON-CURRENT ASSETS

( ìnLacs)

As at As at 31.03.2014 31.03.2013Bankbalanceondepositaccount*(ReferNoteNo.16) 114.54 461.19Interestreceivable 13.70 19.28Others - -Upfrontfee,processingcharges,etcamortisedovertenureofloans 195.99 155.06

324.23 635.53

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowingsmaturingafter12months

14. INVENTORIES (At lower of cost and net realisable value)(Astaken,valuedandcertifiedbythemanagement)

( ìnLacs)

As at As at 31.03.2014 31.03.2013RawMaterials* 22,452.81 23,431.14

Work-in-Process 4,618.72 3,403.87

Finished Goods ** 15,021.19 17,246.59

StoresandSpares 16,497.90 12,926.47

ResidueProduct 53.14 39.42

Scrap 6.36 7.72

Loose Tools 24.40 23.43

58,674.52 57,078.64

*Includes in transit `218.18Lacs(PreviousYearNil) **Includes in transit `468.76Lacs(PreviousYear`640.29Lacs)




17. SHORT TERM LOANS & ADVANCES(Unsecured,consideredgoodunlessstatedotherwise)

( ìnLacs)

As at As at 31.03.2014 31.03.2013

DepositswithNonBankingFinancialInstitutions 4,491.00 4,491.00

Interestreceivable 657.77 518.92

ExportIncentivereceivable 2,851.01 5,565.53

BalancewithExciseandOtherAuthorities 8,857.89 9,269.68

DepositswithGovernmentDepartments&Others 170.71 182.81

MATCreditEntitlements 8,075.74 8,090.16

AdvanceIncomeTax/Taxdeductedatsource(netofincometax

provisionof`4,076.08Lacs,PreviousYear`7,211.48Lacs) 671.44 177.88

Prepaidexpenses 966.28 910.06

OtherAdvances:

Advancesrecoverableincashorinkindorforvaluetobereceived 26,865.64 16,163.57

Doubtfuladvances/loans 73.59 73.59

26,939.23 16,237.16

Less:Provisionfordoubtfuladvances/loans (73.59) 26,865.64 (73.59) 16,163.57

53,607.48 45,369.61

18. OTHER CURRENT ASSETS

( ìnLacs)

As at As at 31.03.2014 31.03.2013


239.72 276.32TheCompanyhasduringtheyearamortisedtheanciliarycostincurredinconnectionwiththeborrowingoverthetermoftheloan.

16. CASH AND BANK BALANCES

( ìnLacs)

As at As at 31.03.2014 31.03.2013

(a) Cash and Cash equivalents (i) CashinHand 32.70 32.21 (ii) BalancewithBanks -OnCurrentAccounts 2,175.40 5,944.85 2,208.10 5,977.06(b) Other bank balances -InFixedDepositAccounts*-Current 14,117.13 6,981.72 -InFixedDepositAccounts*-Noncurrent 114.54 461.19 -OnDividendAccounts 121.29 332.36 16,561.06 13,752.33 Less:AmountdisclosedunderOtherNonCurrentAssets(NoteNo13) 114.54 461.19 16,446.52 13,291.14

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowings.




19. REVENUE FROM OPERATIONS

( ìnLacs)

2013-14 2012-13

Sales of Products

Glycols 75,786.60 69,336.99

E.O.Derivatives 106,906.63 96,113.60

GuarGumPowderandderivatives 29,603.61 74,243.30

EthylAlcohol(Potable) 65,744.32 66,027.36

Industrial Gases 3,961.33 3,390.01

Sugar 8,647.89 8,150.51

Saleoftradedgoods

ChemicalProducts 54,222.27 59,619.52

ExportIncentivereceivable 704.81 7,116.57

Others 5,147.19 7,399.24

350,724.65 391,397.10

Less:ExciseDuty 57,139.79 52,838.34

293,584.86 338,558.76

Sales of Service

Rent 1,378.06 1,197.84

Others 551.25 295.79

1,929.31 1,493.63

Other Operating Revenue

Provisionnolongerrequiredwrittenback/Sundrybalanceswrittenback 49.51 27.13

MiscellaneousIncome 2,093.52 2,176.90

2,143.03 2,204.03

Total Revenue from operations 297,657.20 342,256.42

20. OTHER INCOME

( ìnLacs)

2013-14 2012-13

Interest Income 726.35 916.85

DividendonLongtermInvestment 15.56 9.03

InterestonCurrentInvestment(TDSNil,PreviousYear`1.90Lacs) 12.09 5.85

DividendonCurrentInvestment 2.00 6.40

ReversalofDiminutioninvalueofCurrentInvestments - 3.17

CommodityDerivativeIncome - 24.35

ProfitonsaleofCurrentInvestment 883.59 82.41

ProfitonsaleofFixedAssets 292.07 15.76

1,931.66 1,063.82




21. COST OF MATERIALS CONSUMED

( ìnLacs)

2013-14 2012-13

i) Molasses 39,327.83 28,269.86

ii) ChainStarters 12,196.12 10,621.87

iii) SpecialDenaturedSpirit 50,256.38 47,778.28

iv) Guarsplit,GuarSeeds,etc. 28,585.51 50,392.72

v) ProductionChemicals&Others 10,980.49 13,402.57

vi) Cane 2,678.22 10,456.98

vii) PackingMaterial 11,836.45 11,792.34

Total 155,861.00 172,714.62

22. PURCHASE OF STOCK IN TRADE

( ìnLacs)

2013-14 2012-13

ChemicalandOilProducts 51,030.79 56,172.71

51,030.79 56,172.71

23. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE

( ìnLacs)

2013-14 2012-13

CLOSING STOCK

Finished Goods

- Glycols 2,586.72 1,564.80

-E.O.Derivatives 7,414.56 4,789.98


-GuarGumPowderandderivatives 1,232.94 777.50



-Sugar 3,003.32 9,204.74

-Bagasse 19.99 141.45

-AnhydrusAlcoholandRectifiedSprit 44.97 16.78

-Biocompost&Pressmud 8.93 21.88





19,693.05 20,689.88




LESS : OPENING STOCKFinished Goods

- Glycols 1,564.80 2,685.15

-E.O.Derivatives 4,789.98 4,426.07


-GuarGumPowderandderivatives 777.50 515.55



-Sugar 9,204.74 6,590.80

-Bagasse 141.45 148.53

-AnhydrusAlcoholandRectifiedSprit 16.78 17.45

-Biocompost&Pressmud 21.88 21.46





20,689.88 18,046.07

Less:DifferencialExciseDutyprovidedonStocks. 35.26 16.35

1,032.09 (2,627.46)

24. EMPLOYEE BENEFITS EXPENSE

( ìnLacs)

2013-14 2012-13

Salaries,Wages,Allowances,etc. 7,265.20 7,642.73

ContributiontoProvidentandotherFunds 606.11 555.42

Employees’WelfareandotherBenefits 805.38 714.22

Total 8,676.69 8,912.37

25. FINANCE COSTS

( ìnLacs)

2013-14 2012-13

InterestonFixedLoans 8,753.22 10,445.25

OtherInterest 5,059.20 4,459.55

OtherBorrowingCost

FinancialCharges 2,037.15 2,229.50

15,849.57 17,134.30

Less:InterestReceivedontemporarydeposits 815.30 2,125.14

15,034.27 15,009.16

23. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE (Contd.)

( ìnLacs)

2013-14 2012-13




StoresandsparesConsumed 6,513.98 7,858.90

PowerandFuel 34,825.95 35,097.90

RepairsandMaintenance

-Buildings 535.54 476.02

-PlantandMachinery 2,684.63 2,056.90

-Others 541.36 451.23

Rent 157.56 145.52

RatesandTaxes 1,453.23 1,396.83

TravellingandConveyance 970.07 935.64

Insurance 501.15 411.30

(NetofrecoveryfromcustomersNil,PreviousYear`0.71Lacs)

Directors’sittingFee 12.80 12.80

CommissiontoNonExecutiveDirector - 10.50

Donation 121.12 138.05

CommissiontoSellingagents 1,020.47 902.90

Freightforwardingandothers(Netofrecoveryfromcustomers/provision 6,428.44 8,950.80

writtenback`903.81Lacs,PreviousYear` 857.99Lacs)

ExchangeFluctuationloss(Netofgain` 0.82Lacs,

PreviousYear` 1,652.91Lacs). 0.87 6,505.29

CommodityDerivativeLoss 7.94 -

Baddebtswrittenoff 14.29 7.53

Less:Provisionfordoubtfuldebtswrittenback 0.89 13.40 4.08 3.45

LossonSale/DiscardofFixedAssets 123.56 106.38

Debts/Advanceswrittenoff 24.16 5.76

ProvisionfordiminutioninvalueofCurrentInvestments 0.20 -

AmortisationofForeignCurrencyMonetaryItemTransactionDifference 1,832.88 2,009.64

WealthTax 9.86 11.46

Printing&Stationery,Postage,Telephone,security,legaland

professionalandotherMiscellaneousExpenses 3,103.87 2,672.01

60,883.04 70,159.28

26. OTHER EXPENSES

( ìnLacs)

2013-14 2012-13




27. AccountingPoliciesandothernotestotheaccountsofthefinancialstatementsoftheCompanyanditssubsidiariesaresetoutintheirrespectivefinancialstatements.

28. (A)ContingentLiabilitiesnotprovidedfor(AscertifiedbytheManagement):(i) InRespectof: (ìnLacs)

Particulars As on31.03.2014

As on31.03.2013

CentralExcise/StateExcise 19,636.68 11,013.09

Customs 860.10 261.93

ServiceTax 66.46 69.02

SalesTax 2,901.01 3,321.92

Othermatters 2,021.94 2,012.26

Total 25,486.19 16,678.22

(ii) ClaimsagainsttheCompanynotacknowledgedasdebts` 116.79Lacs(PreviousYear:`96.73Lacs)

(iii) BillsdiscountedwithBanks`5,258.74Lacs(PreviousYear:`15,826.08Lacs).

(iv) RecoveryChargesclaimedbyS.D.M.Behattowardspaymentofcanedues`66.82Lacs(PreviousYear` 66.82Lacs)includingtheinterestoncanedues` 46.89Lacs(PreviousYear` 46.89Lacs).

(v) PendingfinaldisposalbytheAppellateTribunal(CESTAT),CentralExcise,theCompanyhasnotreversedinthebooksofaccountCENVATcredittaken,inrespectofcertaininputsandcapitalgoodsandgodownrentfor` 15.21Lacs(PreviousYear` 15.21Lacs)initiallydisallowedbyauthorities,however,thesamehasbeenreversedintheExciserecordsandthesameisincludedinCENVATreceivables.

(B) CustomdutysavedonimportofrawmaterialunderAdvanceLicensependingfulfillmentofexportobligationis amounting to ` 1,935.70Lacs(PreviousYear` 774.17Lacs).

Themanagementisoftheviewthatconsideringthepastexportperformanceandfutureprospectsthereiscertaintythatpendingexportobligationunderadvancelicenses,willbefulfilledbeforeexpiryoftherespectiveadvancelicenses.Accordinglyandon“GoingConcernConcept”basisthereisnoneedtomakeanyprovisionforcustomdutysaved.

29. Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor(netofadvancesof`3,137.82Lacs,(PreviousYear`2,267.00Lacs)are` 8,690.40Lacs(PreviousYear`12,090.67Lacs).

30. Duringpreviousfinancialyear,Companyhadissuedandallotted3079000nos.fullypaidupequitysharesof` 10 eachattherateof 138.56(includingpremiumof 128.56pershare)onpreferentialbasisintermoftheresolutionpassedinAnnualGeneralMeetingheldon15thSeptember,2012.Thetotalreceiptagainstthisissueof 4,266.26Lacshavebeenfullyutilizedforthepurposeasstatedintheresolution.

31. Intheearlieryears,theStateGovernmentofUttarPradesh(UP)hadimposedalevyoflicensefeeontransferof alcohol from the distillery to the chemical plant. The levywas challenged by theCompany in theHon’bleSupremeCourtandonOctober18,2006thematterwasfinallydecidedbyTheHon’bleSupremeCourtinfavourof theCompany. Accordingly, Company had filed an application for refund of amount paid of ` 507.05 Lacs(PreviousYear`507.05Lacs)(shownasrecoverableundertheheadShortTermLoansandAdvances)withStateGovernmentofUttarakhand,whichisstillpendingforrefundoftheamount.

32. Intheearlieryears,theStateGovernmentofUttarakhandhadleviedExportPassFeeonENA/RSexportoutsideIndia.Thematter isfinallydisposedofbyHon’bleHighCourtofUttarakhandvideitsOrderdated9thJanuary,2012andhasdeclaredthelevyofsaidfeeasunsustainableandirrecoverable.Subsequently,onJune8,2012,videUttarakhandExcise(Amendment)Act,2012,UttarakhandGovernmentretrospectivelyrevivedoldnotificationrelatingtoimpositionofexportfeeonENAandRS.TheCompanyfiledWritPetitionchallengingtheabovesaidnotificationandvideorderdatedSeptember12,2012theHon’bleHighCourtofUttarakhandhasgrantedstayandrestrainedStatefromimposingexportfee.Amountof`106.15Lacs(PreviousYear`106.15Lacs)paidunderprotestisshownasrecoverablefromStateGovt.ofUttarakhand,inthebooksofaccount.




33. TheCompanyhaschallengedthelegalityandthevalidityofthefinancialderivativetransactiondatedJanuary15,2008enteredintowithStandardCharteredBank,NewDelhi(SCB),whichisthesubjectmatterofcivilsuit(Originalsuit)pendingbeforetheHon’bleHighCourtofDelhi(HighCourt)atNewDelhi.Provisionmadeinearlieryearhadbeenwrittenbackinthebooksofaccountsintheyear2011-12inviewofthefavorableopinionofthelegalconsultantandthefactthatDRTandDRATdidnotentertainapplicationoftheSCBandpendingfinaldecisionoftheHighCourtsamehasbeenconsideredundercontingentliability.

34. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies(AccountingStandards) (SecondAmendment)Rules2011 ,theCompanycontinued its policy, asexercised infinancialyear2008-09,theoptionofadjustingexchangedifferencesarisingonreportingoflongtermforeigncurrencymonetary items related toacquisitionofdepreciablecapitalassets in thecostof theassets tobedepreciatedover thebalance lifeof theassetsandother longtermmonetary itemin the“ForeignCurrencyMonetary ItemTranslationDifference”tobeamortisedovertheperiodofloan.Accordingly:(a)Exchangedifferences(gain)/lossrelatingtolong-termmonetaryitems,insofarrelatedtoacquisitionofdepreciablecapitalassets,arisingduringthe year amounting to ` 936.50Lacs(PreviousYear`378.92Lacs)(netofdepreciation`25.60Lacs,(PreviousYear` 40.97Lacs)adjustedtothecostoffixedassets,and(b)relatingtootherlong-termmonetaryitemsarisingduring the year amounting to `1,206.62Lacs(PreviousYear`824.43Lacs)(Netofamortizationof`655.34Lacs,(PreviousYear`636.14Lacs)areadjustedto“ForeignCurrencyMonetaryItemTranslationDifference”.

35. (i) Catalyst is charged to theProfit& LossAccount as consumable (Stores&Spares) based on technicallyassessedusefullife(1to3Years).

(ii) SpecializedComputerSoftwareisamortisedoveritsusefullifeof6yearsonSLMbasis.

36. SSAILisintheprocessofupdatingthefixedassetsrecordsandphysicalverificationofcertainFixedAssetsisinprogress.Inviewoftheadequatesecurityarrangements,managementisoftheviewthattherewillnotbeanymaterialdiscrepanciesbetweenbookandphysicalstockoffixedassetsoncompletionofphysicalverification.

37. InaccordancewiththeAccountingStandard(AS-28)on“ImpairmentofAssets”issuedbytheInstituteofCharteredAccountantsofIndia,inviewofthemanagementwithrespecttoSSAIL,noimpairmentlossonitsFixedAssets/CashGeneratingUnits(CGU)isconsiderednecessaryatthisstage,asitsexpectedrecoverablevalueismorethanitscarryingvalue.

38. Inrespectofasubsidiarycompany(SSAIL),balancesofcertaindebtors,creditors,otherliabilities,loansandadvances(includingcapitaladvance)andprovisionsare inprocessofconfirmationand/or reconciliation.Management isconfidentthatonfinalrecoverability/confirmationofthese,therewillnotbeanymaterialadjustment.

39. Related Parties Disclosure (Asidentifiedbythemanagement):

(i) Relationships:

A.KeyManagementPersonnel&theirRelatives

-U.S.Bhartia(ChairmanandManagingDirector)

-M.K.Rao(ExecutiveDirector)

-PragyaBhartia

B.EnterprisesoverwhichKeyManagementPersonnelhavesignificantinfluence:

-AjayCommercialCo.(P)Ltd.

-J.B.CommercialCo.(P)Ltd.

-KashipurHoldingsLimited

-PolylinkPolymers(India)Ltd.

-HindustanWiresLimited

-SupreetVyapaar(P)Ltd.

-MayurBarter(P)Ltd.

-FacitCommosales(P)Ltd.

-J.Boseck&Co.(P)Ltd.




(ii) DetailofTransactionswithrelatedparties: (` in Lacs)

Related Party Transaction Summary

Significant Influence Key Managerial Personnel Relative of KMPCMD ED

2014 2013 2014 2013 2014 2013 2014 2013

PurchaseOfServices 38.41 48.70

SaleofMaterial 293.76 225.19

SecurityDepositGiven 280.00 -

CapitalAdvancesGiven 1,000.00 -

Investmentinpreferenceshares

490.00 -

Redemptionofpreferenceshares

490.00 -

ICDReceived 2,870.50 2,010.24

ICDPaidBack 4,013.50 5,916.50

InterestExpense 717.26 968.48

RentPaid 25.68 25.08 24.00 -

Salary 27.29 27.29

ManagerialRemuneration 295.83 873.34 69.08 62.81

Balance OutstandingPayableICDPayable 7,035.15 8,184.58

Others 8.92 2.24

ReceivableCapitalAdvances 1,000.00 -

SecurityDeposit 480.00 480.00 280.00 -

Others 4.64 4.64

DisclosureinrespectofMaterialRelatedPartytransactionsduringtheyear: a) SalesofMaterialareto: • HindustanWiresLimited.`293.76Lacs(PreviousYear`225.19Lacs). b) InterestExpenseincludesto: • KashipurHoldingLimited`549.78Lacs(PreviousYear`669.60Lacs). • SupreetVyapaar(P)Ltd.`39.45Lacs(PreviousYear`82.21Lacs). • MayurBarter(P)Ltd.`93.59Lacs(PreviousYear`161.74Lacs). c) Capitaladvancesgiven: • HindustanWiresLimited` 1,000.00Lacs(Previousyear` Nil) d) InterCorporateDepositreceivedincludesfrom: • KashipurHoldingLimited`2,530.00Lacs(PreviousYear`1,738.24Lacs). • MayurBarter`300.00Lacs(PreviousYear` Nil). e) InterCorporateDepositpaidbackincludesto: • KashipurHoldingLimited`2,045.00Lacs(PreviousYear`4,040.00Lacs). • MayurBarter(P)Ltd.`820.00Lacs(PreviousYear` 1,113.00Lacs). • SupreetVyapaar(P)Ltd.`547.00Lacs(PreviousYear`350.00Lacs). f) InterCorporateDepositPayable(includinginterest)includes: • KashipurHoldingLimited`5,849.90Lacs(PreviousYear`5,381.03Lacs). • MayurBarter(P)Ltd.`788.61Lacs(PreviousYear` 1,298.43Lacs). g) Capitaladvancesreceivable: • HindustanWiresLimited`1,000.00Lacs(Previousyear` Nil)




40. TheMinistryofCorporateAffairs,GovernmentofIndia,videGeneralCircularNo.2and3datedFebruary8,2011andFebruary21,2011respectivelyhasgrantedageneralexemptionfromcompliancewithsection212of theCompaniesAct,1956,subjecttofulfillmentofconditionsstipulatedinthecircular.TheCompanyhassatisfiedtheconditionsstipulatedinthecircularandhenceisentitledtotheexemption.NecessaryinformationrelatingtotheSubsidiaries&JointVenturehasbeenincludedbelow:

Name of the Subsidiary/Joint Venture

Shakumbari Sugar & Allied

Industries Limited

IGL Chem International

PTE. LTD.

IGL Finance Limited

Kashipur Infrastructure and Freight Terminal

Private Limited

(` in Lacs) (USD in Lacs) (` in Lacs) (` in Lacs)Capital 6,067.71 0.79 150.00 0.50

Reserves (net of debitbalance of Profit and LossAccount

(15,857.49) (0.69) (63.21) (2.25)

Total Assets 16,464.62 9.13 14,811.44 2,126.26

TotalLiabilities 16,464.62 9.13 14,811.44 2,126.26

Investments(NetofProvisionforDiminutionifany)

- - 290.00 -

Revenue from Operations(Net)

10,701.10 67.99 396.34 -

Profit/(loss)beforetax (3,725.66) (0.23) (266.39) (0.38)

ProvisionforTaxation - 0.03 - -

Profit/(loss)afterTaxation (3,725.66) (0.20) (266.39) (0.38)

ProposedDividend - - - -

41. a) TheBoardforIndustrialandFinancialReconstruction(BIFR)videitsorderdated4thApril2013havedeclaredM/s.ShakumbariSugar&AlliedIndustriesLtd.(SSAIL)asasickindustrialcompanyintermofSec3(1)(o)ofSickIndustrialCompanies(SpecialProvisions)Act,1985.Further,BIFRhasappointedIDBIastheOperatingAgency(OA)withdirectionstopreparearevivalschemeforthecompany.AccordinglySSAILhasfiledDraftRehabilitationSchemewiththeBIFRon11thJanuary2014,consideringthisandalsocontinuousfinancialsupportfromtheHoldingcompany,themanagementhaspreparedFinancialStatementsofSSAILonGoingConcernbasisdespitethenegativenetworthonthebalancesheetdate.

b) AsstatedaboveandinviewoffinancialtightnessSSAILcouldnotpayontimeandmadedefaultinrepaymentof:i) Principal:-CentralBankofIndia` 742.11Lacs(Apr-13toMar-14),AxisBank` 177.90Lacs(Jan-14to

Mar-14)&IDBIBank`208.33Lacs(Jan-14toMar-14)ii) Interest:-CentralBankofIndia` 5.41Lacs(Apr-13toMar-14),AxisBank` 40.57Lacs(Feb-14toMar-

14)&IDBIBank`53.95Lacs(Feb-14toMar-14)42. Exceptionalitemincludes: a) Lossonaccountexchangeratedifferencesamountingto 10,803.19lacs(netofgainof 11,336.93Lacs)for

yearended31stMarch2014,onpayment,settlementaswellasreinstatementofshorttermforeigncurrencyborrowingsandothermonetaryassets/liabilities,and

b) Provisionmade,againstamountreceivablefromanoverseasdebtor,onaccountofspecialdiscountduetosteepfallinthenaturalgumpricesandqualityissuesamountingto 8,369.43Lacs,pendingfinalreconciliationandnecessaryapprovalfromReserveBankofIndia.Thesamehasbeenincludedinotherpayablesunder“OtherCurrentliabilities”.




43. IncompliancewithAccountingStandard27on“FinancialReportingof Interest inJointVenture”, thedetailsofcompany’sshareinitsjointventureintherespectiveheadofFinancialStatementareasunder:Particulars Amount (` in Lacs)

31.03.2014 31.03.2013LiabilitiesLongtermLiabilities 500.00 -

OtherLong-termliabilities 52.91 14.11Othercurrentliabilities 1,575.09 708.63AssetsTangibleassets 761.27 1.77Intangibleassets 0.10 0.13Capitalwork-in-progress 1,035.72 354.48Intangibleassetsunderdevelopment* 50.00 50.00Long-termloansandadvances 236.40 246.74Othernon-currentassets 14.00 15.75Cashandcashequivalents 21.55 49.40Short-termloansandadvances 7.22 3.10ExpensesRatesandtaxes 0.02 1.67Miscellaneousexpenses 0.36 -

*ShareinRailwayLicenseFee44. SegmentInformation:

A. InformationaboutBusinessSegments(PrimarySegments): (` in Lacs)Business Segments Others Unallocable Total

Chemicals Liquor31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013

A REVENUE1 GrossSales

(External)271,655.13 310,140.30 66,746.56 67,184.39 14,252.27 15,566.04 - - 352,653.96 392,890.73

2 OtherIncome 977.12 611.88 99.76 913.76 652.12 396.30 2,345.69 1,345.91 4,074.69 3,267.853 TotalRevenue 272,632.25 310,752.18 66,846.32 68,098.15 14,904.39 15,962.34 2,345.69 2,345.69 356,728.65 396,158.58B RESULTS1 Segment Result

(PBIT)2,100.72 37,404.56 1,760.80 3,428.42 (1,282.23) (346.62) (8,707.43) (11,515.37) (6,128.14) 28,970.99

2 Interest Expense(Net)

15,034.27 15,009.16

3 ProfitBeforeTax (21,162.41) 13,961.834a Provision for Current

Tax(netofMATcredit)- 1.08

4b DeferredTax (5,024.79) 4,386.014c Taxation provision

ofearlieryear(1.83) 21.87

5 ProfitafterTax (16,135.79) 9,552.87

C Other Information:1 SegmentAssets 216,973.25 203,440.87 17,173.44 14,599.92 31,521.36 38,647.19 58,617.35 55,095.63 324,285.93 311,783.612 SegmentLiabilities 61,041.15 47,974.12 3,262.39 2,211.21 5,788.54 13,996.78 216,948.49 1,94,019.88 287,040.57 258,201.99

3 CapitalExpenditure 9,988.07 16,642.16 1,105.45 307.81 1,486.26 1,602.57 1,357.13 699.29 13,936.91 19,251.83

4 Depreciation andAmortisation expenses

7,032.52 7,090.41 256.78 253.46 1,368.96 1,273.86 402.51 400.00 9,060.77 9,017.73

B. InformationaboutGeographicalSegments(SecondarySegments)(` in Lacs)Domestic Overseas Total

31.03.2014 31.03.2013 31.03.2014 31.03.2013 31.03.2014 31.03.2013

1 GrossSales(External) 232,663.61 215,168.33 119,990.35 177,722.40 352,653.96 3,92,890.73

2 SegmentAssets 240,793.12 242,143.22 24,875.46 14,544.76 265,668.58 2,56,687.98

Primary Segment reporting (by business segment)Segments have been identified in linewith Accounting Standard on ‘SegmentReporting’ (AS-17), takingintoaccounttheorganisationalstructureaswellasthedifferentialrisksandreturnsofthesesegments.TheCompanyhasidentifiedthreesegmentsi.e.businessIndustrialchemical,Liquorandotherswhichincludesherbalproducts,rentalandsugarandreportedaccordingly.Secondary Segment reporting (by geographical segment-customer location)Inrespectofsecondarysegment information, theCompanyhas identified itsgeographicalsegmentas(a)domesticand(b)overseasonthebasisoflocationofcustomers.




Reportable segmentsReportablesegmentshavebeenidentifiedasperthequantitativecriteriaspecifiedin‘AccountingStandard17:SegmentReporting’.Segment CompositionIndustrialChemicalsSegmentcomprisesGlycols,SpecialtyChemicals,NaturalGumandotherrelatedgoodsetc.LiquorSegmentcomprisesmanufactureandsaleofEthylAlcohol(Potable).‘Others’primarilyincludesHerbalProducts,RentalandSugar.

45. Earningspershare(EPS):2013-14 2012-13

Netprofitfortheyearattributabletoequityshareholders(` in Lacs) (16,135.79) 9,552.87

Weightedaveragenumberofequitysharesoutstanding 30961500 29426218

Basicanddilutedearningspershare(facevalueof` 10 each) (`) (52.12) 32.4646. CommodityandForeignExchangeDerivativesandexposures(ascertifiedbythemanagement).

(a) Outstandingattheyear-endasfollowsNatureofInstruments 2013-14

Amount(FC in millions)

2013-14Amount

(` in Lacs)

2012-13Amount

(FCinmillions)

2012-13Amount

(` in Lacs)OpenForwardContracts-USD 28.35 17,985.08 - -Foreign currency options -USD - - 2.00 1,086.00PackingCreditNetofExportdebtors-USD - - 46.20 25,092.00Openforeignexchangeexposures:Loans-USD 50.66 30,358.40 58.01 31,503.07Payable-USD-EURO-JPY-CHF

53.530.031.330.01

32,077.3022.817.762.96

58.050.011.000.01

31,512.685.045.772.50

(a) Exchangefluctuationlossof`0.87Lacs(PreviousYearlossof`6,505.29Lacs),isnetofgainof`0.82Lacs(PreviousYeargainof`1,652.91Lacs).(Alsorefernotes42).

(b) TheCompanyusesderivative instruments forhedgingpossible lossesandexchangefluctuation loss is` 679.44Lacsnetoffgainof`5,253.99Lacs(PreviousYear`1,746.57Lacsnetoffgainof`618.13Lacs)whichisinclusiveoflossof`343.04Lacs(PreviousYeargainof`60.83Lacs)provisionformarktomarketgain/lossonaccountofalloutstandingfinancialtransactionsason31stMarch2014.

(c) ConsideringtheprincipleofprudenceandannouncementmadebyTheInstituteofCharteredAccountantsofIndia‘AccountingforDerivatives’inMarch,2008,theCompanyhasprovidedforanamountof` 143.63Lacsincludedin(c)(PreviousYear`6.58Lacs)onoutstandingcontractstotheStatementofProfit&Loss,onaccountofforeignexchangederivativeinstruments.

47. Thesubsidiarycompany,IGLFinanceLimited,hadinvestedfundsforshorttermincommodityfinancingcontractsofferedbyNationalSpotExchangeLimited(NSEL).NSELhasdefaultedinsettlingthecontractsonduedates.However,consideringthepresentstateofaffairs,legalactionstakenbythesubsidiarycompanyandalsoactionstakenbytheGovernmentandotherauthorities,themanagementisconfidentofrecoveryoftheentireduesfromNSELover theperiodof time.Accordingly,against totalexposureof`14,503.44Lacs,noprovisionhasbeenconsiderednecessaryatthisstagebythesubsidiarycompanyandhencetreatedasgoodandfullyrecoverable.

48. PreviousYear’sfigureshavebeenregrouped/rearranged/recastwhereverconsiderednecessary.AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao CharteredAccountants ChairmanandManagingDirector ExecutiveDirectorFirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerM.No.85155Place :Noida,UP Lalit Kumar Sharma Dated:22ndMay,2014 Company Secretary


INDIAGLYCOLSLIMITED

INDIAGLYCOLSLIMITED

CIN:L24111UR1983PLC009097RegisteredOffice:A-1,IndustrialArea,BazpurRoad,Kashipur-244713,Distt.UdhamSinghNagar,Uttarakhand

CIN:L24111UR1983PLC009097RegisteredOffice:A-1,IndustrialArea,BazpurRoad,Kashipur-244713,Distt.UdhamSinghNagar,Uttarakhand

Member’sSignature

FOLIONO./DPID&CLIENTIDNO................................(tobefilledinbytheshareholders)

IdeclarethatIamaRegisteredShareholderoftheCompanyandhold_______________Shares.

NOTE:1. AmemberintendingtoappointaproxyshouldcompletetheProxyFormbelowanddeposititattheCompany’s

RegisteredOffice,notlaterthan48hoursbeforethecommencementofthemeeting.2. AmemberproxyattendingthemeetingmustcompletethisAdmissionSlipandhanditoverattheentrance.Name

oftheProxyinBLOCKLETTERSProxy’sSignature.KindlybringyourcopyoftheAnnualReportattheAnnualGeneralMeeting,ascopiesoftheReportwillnotbedistributedattheMeeting

ADMISSIONSLIP

THIRTIETHANNUALGENERALMEETING

Nameofthemember(s): EmailId:

Registeredaddress: FolioNo./ClientId:

DPId:

I/We,beingthemember(s)of…….........................................…sharesoftheabovenamedCompanyherebyappoint:

1)___________________________of_____________________havingemailid_________________orfailinghim



andwhosesignature(s)areappendedbelowasmy/ourproxytoattendandvote(onpoll)forme/usandonmy/ourbehalfattheThirtiethAnnualGeneralMeetingoftheCompany,tobeheldonSaturday,20thSeptember,2014at12.30p.m.atA-1,IndustrialArea,BazpurRoad,Kashipur,DistrictUdhamSinghNagar,Uttarakhandandatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

PROXYFORM[Pursuant to section 105(6) of theCompaniesAct,2013andrule19(3)of the Companies (ManagementandAdministration)Rules,2014]

Signedthis…………………….dayof……………………2014.

……………………….. ……………………………….Signatureofmember Signatureofproxyholder(s)

Notes:

1. This form, in order to be effective, should be duly stamped, completed, signed, deposited at the registered office of the Company, not less than 48 hours before the meeting.

2. A proxy need not be a member of the Company.

3. Appointingaproxydoesnotpreventamemberfromattendingthemeetinginperson,ifhesowishes.

**4.Thisisonlyoptional.Pleaseputa‘X’intheappropriatecolumnagainsttheresolutionsindicatedintheBox.Ifyouleavethe‘For’or‘Against’columnblankagainstanyoralltheresolutions,yourProxywillbeentitledtovoteinthemannerashe/shethinksappropriate.

Affixrevenuestampofnot

less than `0.15

**Iwishmyaboveproxytonoteinthemannerasindicatedintheboxbelow:

Resolution No. RESOLUTIONS FOR AGAINSTORDINARY BUSINESS1 (a) AdoptionofFinancialStatementsfortheyearended31stMarch,2014

(b) AdoptionofConsolidatedFinancialStatementsfortheyearended31stMarch,2014

2 Approvaloffinaldividendonequityshares

3 Re-appointmentofShriU.S.Bhartiawhoretiresbyrotation

4 AppointmentofStatutoryAuditorsandfixingoftheirremuneration.

SPECIAL BUSINESS5 ApprovaloftheRemunerationofMr.U.S.Bhartia,ChairmanandManagingDirector

6 ApprovaloftheremunerationoftheNonExecutiveDirectors

7 ApprovaloftheremunerationoftheCostAuditor

8 Approval of theRemuneration ofMs.PragyaBhartia (relatedparty) asPresident,BusinessDevelopmentoftheCompany

9 AppointmentofMr.PradipKumarKhaitanasanIndependentDirector

10 AppointmentofMr.R.C.MisraasanIndependentDirector

11 AppointmentofMr.JagmohanNKejriwalasanIndependentDirector

12 AppointmentofMr.RaviJhunjhunwalaasanIndependentDirector

13 AppointmentofMr.JitenderBalakrishnanasanIndependentDirector

14 AlterationofArticlesofAssociationoftheCompany

15 RaisingoffundsbytheCompanybywayofIssueofsecurities/shares

Thirtieth Annual Report 2013-14 - India Glycols Limited · the time being in force), M/s. R.J. Goel & Co., Cost Accountants, appointed as Cost Auditors of the Company by the Board

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