india glycols limited · 2016-09-30 · state bank of india state bank of patiala axis bank limited...

India Glycols Limited

Thirty SecondAnnual Report

2015-16

Forward-looking statement

Across the pages

• Corporateinformation 1

• Notice 2

• Board’sReport 19

• ManagementDiscussion&Analysis 41

• ReportonCorporateGovernance 47

• IndependentAuditors’Report 60

• BalanceSheet 66

• StatementofProfit&Loss 67

• CashFlowStatement 68

• NotestotheAccounts 69

• IndependentConsolidatedAuditors’Report 97

• ConsolidatedBalanceSheet 100

• ConsolidatedStatementofProfit&Loss 101

• ConsolidatedCashFlowStatement 102

• NotestoConsolidatedFinancialStatements 103

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

Wecannotguaranteethattheseforwardlookingstatementswillberealised,althoughwebelievewehavebeenprudentinassumptions.Theachievementofresultsissubjecttorisks,uncertaintiesandeveninaccurateassumptions.Shouldknownorunknownrisksoruncertaintiesmaterialise,orshouldunderlyingassumptionsproveinaccurate,actualresultscouldvarymateriallyfromthoseanticipated,estimatedorprojected.Readersshouldbearthisinmind.

Weundertakenoobligationtopubliclyupdateanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.


32ndAnnualReport2015-16|1

CorporateInformation

BoardofDirectorsU.S.Bhartia Chairman&ManagingDirector

JayshreeBhartia Director

PradipKumarKhaitan Director

JitenderBalakrishnan Director

RaviJhunjhunwala Director

JagmohanN.Kejriwal Director

R.C.Misra Director(until28thApril,2016)

AshwiniKumarSharma NomineeDirector(w.e.f.1stSeptember,2015)

M.K.Rao ExecutiveDirector

AuditCommitteePradipKumarKhaitan Chairman(w.e.f.26thMay,2016)

R.C.Misra(until28thApril,2016)

JagmohanN.Kejriwal

M.K.Rao

Stakeholders’RelationshipCommitteePradipKumarKhaitan Chairman(w.e.f.26thMay,2016)

R.C.Misra(until28thApril,2016)

U.S.Bhartia

JagmohanN.Kejriwal

ChiefExecutiveOfficerRakeshBhartia

ChiefFinancialOfficerAnand Singhal

CompanySecretaryAnkur Jain

Statutory AuditorsLodha&Co.,CharteredAccountants

CostAuditorsR.J.Goel&Co.,CostAccountants

BankersStateBankofIndia

StateBankofPatiala

AxisBankLimited

PunjabNationalBank

UnionBankofIndia

IDBIBankLimited

StateBankofHyderabad

StateBankofTravancore

StateBankofBikaner&Jaipur

RegisteredOfficeIndia Glycols LimitedCIN:L24111UR1983PLC009097A-1,IndustrialArea,BazpurRoad,Kashipur-244713Distt.UdhamSinghNagar,UttarakhandPhone:+91-5947-269000/269500/275320Fax :+91-5947-275315/269535Website:www.indiaglycols.comE-mail:[email protected]

CorporateOffice3A,ShakespeareSarani,Kolkata-700071

HeadOfficePlotNo.2B,Sector-126,Noida-201304Distt.GautamBudhNagar,UttarPradesh

Registrars&TransferAgentsMCSShareTransferAgentLimitedF-65,1stFloor,OkhlaIndustrialArea,Phase-INewDelhi-110020

2|32ndAnnualReport2015-16


Noticethe Members of the Company be and is herebyaccordedforthere-appointmentofShriU.S.Bhartia(DIN: 00063091) as the Chairman and ManagingDirectoroftheCompanyforafurtherperiodoffive(5)yearsw.e.f.1st April,2016upto31stMarch,2021.

RESOLVED FURTHER THAT pursuant to the provisions of Section 197, 198 and Schedule V ofthe Act and subject to the approval of the CentralGovernmentand/orotherauthorities, if requiredandsuch other approvals, sanctions, permissions, asmay be required, approval of the Members of theCompany be and is hereby accorded for paymentof the following remuneration to Shri U.S. Bhartia,Chairman&ManagingDirector,foraperiodofthree(3)yearsi.e.from1stApril2016till31stMarch,2019along with such perquisites, benefits and amenitiesasmentionedbelow,subject to theoverallceilingof` 2,67,03,153 per annum (excluding commission, ifany) (as had earlier been approved by the CentralGovernmentforaperiodofthreeyearsfrom1st April,2008to31stMarch,2011videitsletterno.SRNNo.A62791298/5/2009-CL-VIIdated21stApril,2010andagainfortheperiodofthreeyearsfrom1stApril,2011to31stMarch,2014videitsletterno.B15242589/2/2011-CL-VIIdated24thOctober,2011):

a) Salary: TheManaging Director shall be paid salary of

` 20,00,000/- (Rupees Twenty Lacs Only) permonth.

b) Commission: Not exceeding 4% of the net profits of the

Companyforeachfinancialyearcomputedinamannerlaiddowninsection198oftheAct.

c) Perquisites: InadditiontotheSalary,theManagingDirector

shallbeentitledtothefollowingperquisiteswhichshall be evaluated as per Income Tax ruleswhereverapplicable,intheabsenceofanysuchrule, perquisite(s) shall be evaluated at actualcost:i) Unfurnishedresidentialaccommodation;ii) Furnishingofresidenceuptoanamountnot

exceeding`5.0lacsperannum;iii) Gas,electricity,waterasperbillsproduced

totheCompany;iv) Medicalreimbursement–medicalexpenses

incurredactuallyforselfandfamily;v) Clubfeesfortwoclubsincludingadmission

andotherfees;vi) Leavetravelconcessiononceinayearfor

selfandfamilytoanyplaceinIndiabyAir/Rail/RoadasperRulesoftheCompany;

vii) MediclaimandPersonalAccidentInsurance

Notice is hereby given that the Thirty Second AnnualGeneral Meeting (AGM) of the members of IndiaGlycols Limited will be held onSaturday, the 24th day of September, 2016 at 11.00 A.M. at the Registered Office of the Company at A-1, Industrial Area, Bazpur Road, Kashipur-244713, District Udham Singh Nagar, Uttarakhandtotransactthefollowingbusiness:

ORDINARY BUSINESS:1. Toreceive,considerandadopttheauditedfinancial

statements (including the consolidated financialstatements) of the Company for the financial yearended31stMarch,2016togetherwiththeReportsoftheBoardofDirectorsandAuditorsthereon.

2. To appoint a Director in place of Shri M. K. Rao(DIN:02168280),who retiresby rotationandbeingeligible,offershimselfforre-appointment.

3. ToappointM/sLodha&Co.,CharteredAccountants(Registration No. 301051E) as Statutory Auditorsof theCompany from theconclusionof thisAnnualGeneralMeeting(AGM)until theconclusionofnextAGMandtofixtheirremuneration.

SPECIAL BUSINESS:4. Toconsiderand, if thoughtfit, topassthefollowing

resolution as an ORDINARY RESOLUTION: “RESOLVED THAT pursuant to the provisions of

Section 148 and all other applicable provisions oftheCompaniesAct,2013andtheCompanies(Auditand Auditors) Rules, 2014 (including any statutorymodification(s)orre-enactmentsthereof,forthetimebeinginforce)readwiththeCompanies(CostRecordsandAudit)Rules,2014,remunerationpayabletoM/sR.J.Goel&Co.,CostAccountants,appointedbytheBoardofDirectors(the“Board”)toconducttheauditofthecostrecordsoftheCompanyforthefinancialyear ended 31st March, 2017, amounting to ` 1.50lacs(RupeesOneLacFiftyThousandonly)plusout-of-pocketexpenses,ifany,beandisherebyratifiedandconfirmed.

RESOLVED FURTHER THAT theBoardbeand ishereby authorized to do all acts and take all suchstepsandgivealldirectionsasitmayinitsabsolutediscretion deem necessary, proper or expedient togiveeffecttothisresolution.”

5. Toconsiderand, if thoughtfit, topassthefollowingresolution as a SPECIAL RESOLUTION:

“RESOLVED THAT pursuant to the provisions ofSection196,197,198andotherapplicableprovisions,if any, of the Companies Act, 2013 (including anystatutory modification(s) or re-enactments thereof,forthetimebeinginforce)(the“Act”)andrulesmadethereunder read with Schedule V of the Act andsubject to the approval of the Central Governmentand/or other authorities, if required, approval of

CIN:L24111UR1983PLC009097A-1,IndustrialArea,BazpurRoad,Kashipur-244713Distt.UdhamSinghNagar,Uttarakhand

Phone:05947-269000,269500Fax:05947-275315,269535Website:www.indiaglycols.comE-Mail:[email protected]



premium not exceeding ` 20,000 perannum;

viii) ContributiontoProvidentFundasperrulesoftheCompany;

ix) Gratuity not exceeding one-half month’ssalaryforeachcompletedyearofservice;

x) Company’s car with driver for official andpersonaluse;

xi) Telephone facility at residence andmobilephoneforbusinesspurposes;

xii) LeaveencashmentasperCompany’srulesi.e.15daysforeverycompletedyearofservice.

Provided further that theaggregateof remunerationby way of salary, commission, perquisites andallowances etc. payable to Shri U.S. Bhartia shallnotexceed5%oftheNetProfitsoftheCompanyina financial year computed in themanner laid downunderSection198of theActandwithin theoveralllimitprescribedunderSection197readwithScheduleVoftheAct.

RESOLVED FURTHER THAT subject toprovisionsofSection197andScheduleVandotherapplicableprovisions,ifany,oftheAct,asamendedfromtimeto time, the Board of Directors of the Company,may on the recommendation of the Nominationand Remuneration Committee annually review thesalary,commission,perquisitesandallowancesetc.payable to Shri U.S. Bhartia and to restructure theremuneration payable within the overall limit of 5%oftheNetProfitsoftheCompanyinafinancialyear,computedinthemannerlaiddownunderSection198oftheActandwithintheoveralllimitprescribedunderSection197readwithScheduleVoftheAct.

RESOLVED FURTHER THAT notwithstanding to theabove,intheeventofanylossorinadequacyofprofitsinanyfinancialyearduringthetenureofShriU.S.Bhartia,asChairmanandManagingDirectorofthe Company, the aforesaid remuneration or suchremuneration as may be approved by the CentralGovernment, wherever required, shall be paid astheminimum remuneration toShriU.S.Bhartia asChairmanandManagingDirectoroftheCompany.

RESOLVED FURTHER THAT theBoardofDirectorsoftheCompanybeandareherebyauthorizedtoenterintosuchagreement(s),deed(s)oranyotherdocuments;tosettleanyquestion,difficultyordoubt thatmayariseinthisregardandtodoallsuchacts,deeds,mattersandthings,astheBoardmayinitsabsolutediscretion,considernecessary,expedientordesirableinordertogiveeffecttothisresolutionorasotherwiseconsiderednecessarybytheBoardofDirectorsinthebestinterestoftheCompanyandasmaybeagreedtobytheBoardofDirectorsandShriU.S.Bhartia.”


“RESOLVED THAT pursuant to the provisions ofSection 197, 198 and other applicable provisions,if any, of the Companies Act, 2013 (including anystatutorymodification(s)orre-enactmentsthereof,forthe time being in force) (the “Act”) and rulesmadethereunder read with Schedule V of the Act andsubject to the approval of the Central Governmentand/orotherauthorities, if required,approval of theMembersoftheCompanybeandisherebyaccordedfor paymentof the followingmonthlyRemuneration(which is identical with his current remuneration includingperquisites)toShriM.K.Rao(DIN:02168280),ExecutiveDirector, for the remaining two (2) yearsof his current tenure i.e. from1st April, 2016 to 31st March,2018:

a) BasicSalary :`2,97,000/- b) SpecialAllowance :`1,38,705/- c) Ex-gratia :`44,550/- d) Perquisites :

Inadditiontothesalary,theExecutiveDirectorshallbeentitledtothefollowingperquisiteswhichshallbeevaluatedasperIncomeTaxRuleswhereverapplicable, in the absence of any such rule,perquisite(s)shallbeevaluatedatactualcost:

i) Unfurnishedresidentialaccommodation; ii) Furnishingofresidenceuptoanamountnot

exceeding`2.00lacsperannum; iii) Electricity, water expenses reimbursement

asperCompanypolicy; iv) Medical reimbursement equivalent to one

monthsalaryforselfandfamily; v) Leave travelconcessiononce inayear for

anamountnotexceeding`36,000/-forselfandfamilytoanyplaceinIndiabyAir/Rail/Road;

vi) MedicalandAccidental InsurancepremiumasperCompany’srules;

vii) ContributiontoProvidentFundasperrulesoftheCompany;

viii) Gratuitynotexceedingone-halfmonthsalaryforeachcompletedyearofservice;

ix) Company’s car with driver for official andpersonaluse;

x) Maintenance expenses for second carfor personal purpose for an amount notexceeding`2.00lacsperannum;

xi) Telephone facility at residence andmobilephoneforbusinesspurposes;

xii) LeaveencashmentasperCompany’srules.



RESOLVED FURTHER THAT the aggregate of remuneration by way of salary, commission,perquisitesandallowancesetc.payabletoShriM.K.Rao shall not exceed 5% of the Net Profits of theCompanyinafinancialyearcomputedinthemannerlaiddownunderSection198oftheActandwithintheoverall limitprescribedunderSection197readwithScheduleVoftheAct.

RESOLVED FURTHER THATsubject toprovisionsofSection197andScheduleVandotherapplicableprovisions,ifany,oftheAct,asamendedfromtimeto time, the Board of Directors of the Company,mayontherecommendationof theNominationandRemunerationCommitteeannuallyreviewthesalary,commission,perquisitesandallowancesetc.payabletoShriM.K.Raoandtorestructuretheremunerationpayablewithintheoveralllimitof5%oftheNetProfitsoftheCompanyinafinancialyear,computedinthemannerlaiddownunderSection198oftheActandwithintheoverall limitprescribedunderSection197readwithScheduleVoftheAct.

RESOLVED FURTHER THAT notwithstanding to theabove,intheeventofanylossorinadequacyofprofitsinanyfinancialyear,duringthetenureofShriM.K.RaoasExecutiveDirectoroftheCompany,theaforesaidremunerationshallbepaidastheminimumremuneration payable to himor in accordancewiththe limitsprescribed inScheduleVof theActorbytheCentralGovernment,whereverrequired.

RESOLVED FURTHER THAT theBoardofDirectorsof the Company be and are hereby authorized toenter into such agreement(s), deed(s) or any otherdocuments;tosettleanyquestion,difficultyordoubtthatmayariseinthisregardandtodoallsuchacts,deeds,mattersand things,as theBoardmay in itsabsolutediscretion,considernecessary,expedientordesirableinordertogiveeffecttothisResolutionorasotherwiseconsiderednecessaryby theBoardofDirectorsinthebestinterestoftheCompanyandasmaybeagreedtobytheBoardofDirectorsandShriM.K.Rao.”


“RESOLVED THAT pursuant to the provisions ofSection 41, 42, 62 and 71 and other applicableprovisions, if any, of theCompaniesAct, 2013andRules made thereunder (including any statutory modification(s)orre-enactmentsthereofforthetimebeinginforce),SecuritiesandExchangeBoardofIndia(Listing Obligations and Disclosure Requirements)Regulations, 2015, the Foreign Exchange Manage-ment Act, 1999 (“FEMA”), Foreign ExchangeManagement(TransferorIssueofSecuritybyaPersonResidentOutsideIndia)Regulations,2000,Issueof

Foreign Currency Convertible Bonds and OrdinaryShares (Through Depository Receipt Mechanism)Scheme,1993andtherules,regulations,guidelines,policies,notifications,circulars&clarificationsissued /to be issued by theGovernment of India, ReserveBank of India, Securities and Exchange Board ofIndiaincludingtheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations, 2009 (“SEBI ICDR Regulations”) andSecurities and Exchange Board of India (Issueand Listing of Debt Securities) Regulations, 2008,as amended, the Department of Industrial Policyand Promotion, Ministry of Commerce (“DIPP”),the Foreign Investment Promotion Board (“FIPB”),the Ministry of Finance (Department of EconomicAffairs) and / or any other Regulatory / Statutory /Competent Authorities (hereinafter referred to asthe“AppropriateAuthorities”),theMemorandumandArticlesofAssociationof theCompanyandsubjectto such other approvals, consents, permissionsand sanctions of the Appropriate Authorities andsubjecttosuchconditionsandmodifications,asmaybe prescribed by any of them while granting suchapprovals, consents, permissions and sanctionswhichmaybeagreedtobytheBoardofDirectorsoftheCompany(hereinafterreferredtoasthe“Board”which shall include any Committee authorized forthe purpose), the consent of the Members of theCompany be and is hereby accorded to the Boardto create, issue, offer and allot (including withprovisionsforreservationonfirmand/orcompetitivebasis,ofsuchpartof issueandforsuchcategoriesof persons as may be permitted), in the course ofoneormoredomesticor internationaloffering(s),ora combination thereof, with or withoutGreen Shoeoption, including by way of a qualified institutionalplacement,toeligibleinvestors(whetherornotsuchinvestorsareMembersoftheCompany,orwhetherornotsuchinvestorsareIndianorforeign,includingqualifiedinstitutionalbuyerssuchaspublicfinancialinstitutions, scheduled commercial banks, mutualfunds,foreigninstitutional investors,multilateralandbilateral development financial institutions, venturecapitalfunds,foreignventurecapitalinvestors,stateindustrial development corporations, insurancecompanies, pension funds and provident funds),whetherbywayof apublic offeringor bywayof aprivateplacementandwhetherbywayofcirculationof an offering circular or placement document orotherwise, securities including equity shares and/orinstrumentsorsecuritiesconvertibleintoequitysharesoftheCompany,GlobalDepositoryReceiptsand/orAmerican Depository Receipts and/or convertiblepreference shares and/or convertible debenturesorbonds (compulsorilyand/oroptionally, fullyand /



or partly), and/or non-convertible debentures withwarrantsand/orsecuritieswithorwithoutdetachable/non-detachablewarrantsand/orwarrantswitharightexercisable by the warrant-holder to subscribe forequitysharesand /orForeignCurrencyConvertibleBonds (FCCBs)convertible intoequitysharesat theoptionoftheCompanyortheholder(s)thereof,uptoanaggregateamountof 250.00Crores(RupeesTwoHundredFiftyCroresonly)oritsequivalentinanyothercurrency,(hereinafterreferredtoas“Securities”)tobedenominatedinforeigncurrencyorIndianrupees,asthecasemaybe,which,attheoptionoftheCompanyor theholdersof theSecuritiesmaybesurrenderedfor the purpose of cancellation against receipt ofcorrespondingnumberofunderlyingequitysharesoftheCompany, as the casemay be, and such issueandallotmenttobemade,inoneormoretranche(s),atsuchprice(premium/discount)asmaybedeterminedin accordance with relevant guidelines, for cash orotherwise,onsuch termsandconditionsasmaybedecidedanddeemedappropriatebytheBoardatthetimeof issueorallotment,considering theprevailingmarketconditionsandotherrelevantfactors.

RESOLVED FURTHER THATwithoutprejudicetothegeneralityoftheaboveandsubjecttoallapplicablelaws,the aforesaid issue ofSecuritiesmay have all or anytermsorcombinationoftermsasareprovidedinissueofsecuritiesofsuchnatureinternationallyincludingtermsrelatingtosurrenderoftheSecuritiesforthepurposesof cancellation against receipt of the correspondingnumberofunderlyingequitysharesand theBoardbeand isherebyauthorized toenter intoandexecuteallsuch arrangements/agreements as the case may bewith any lead managers, managers, underwriters,advisors, guarantors, depositories, custodians andall such agencies as may be involved or concernedin such offerings of Securities and to remunerate allsuchagencies including thepaymentofcommissions,brokerage,feesorthelike,andalsotoseekthelistingofsuchSecuritiesinoneormorestockexchangesoutsideIndia and the listing of equity shares underlying theSecuritiesinoneormoreStockExchangesinIndia.

RESOLVED FURTHER THAT in theeventof issueofSecurities bywayofGlobalDepositoryReceiptsand / or American Depository Receipts or FCCBs,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 decides to open theproposedissueofsuchSecurities.

RESOLVED FURTHER THAT in theeventof issueof Securities by way of a qualified institutionalplacement:

i) the relevant date on the basis of which priceof the resultant shares shall be determined asspecifiedunderapplicablelaw,shallbethedateof the meeting in which the Board decides toopentheproposedissueofSecurities;

ii) the allotment of Securities shall be completedwithin12monthsfromthedateofthisresolutionapprovingtheproposedissueorsuchothertimeasmaybeallowedbytheSEBIGuidelinesfromtimetotime;and

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

RESOLVED FURTHER THAT such of ShareWarrantsorFCCBsasarenotsubscribed,maybedisposedoff by theBoard in its absolutediscretioninsuchamanner,astheBoardmaydeemfitandaspermissiblebylaw.

RESOLVED FURTHER THAT theBoardbeand isherebyauthorizedtofinalizeandapprovetheofferingcircular / placement document for the proposedissueoftheSecuritiesandtoauthorizeanydirectoror directors of theCompanyor anyother officer orofficersoftheCompanytosigntheabovedocumentsforandonbehalfof theCompanytogetherwith theauthority to amend, vary or modify the same assuch authorized persons may consider necessary,desirableorexpedientandforthepurposeaforesaidto give such declarations, affidavits, certificates,consentsand/orauthoritiesasmay,intheopinionofsuchauthorizedperson(s),berequiredfromtimetotime,andtoarrangeforthesubmissionoftheofferingcircular/placementdocument,andanyamendmentsandsupplements thereto,withanyapplicablestockexchanges(whetherinIndiaorabroad),governmentand regulatoryauthorities, institutionsor bodies, asmayberequired.

RESOLVED FURTHER THAT the Securities issued inforeignmarketsshallbetreatedtohavebeenissuedabroadand/orintheinternationalmarketand/orattheplaceofissueoftheSecuritiesintheinternationalmarketandmaybegovernedbyapplicable foreignlaws.

RESOLVED FURTHER THAT theBoardbeand isherebyauthorizedtoissueandallotsuchnumberofequitysharesasmayberequired tobe issuedandallottedfortheissueoftheSecuritiesreferredaboveorasmaybenecessaryinaccordancewiththetermsoftheoffering,allsuchequitysharesbeingpari-passu withthethenexistingequitysharesoftheCompanyinallrespects.



RESOLVED FURTHER THAT the Board be andis hereby authorized to do such acts, deeds andthingsastheBoardinitsabsolutediscretiondeemsnecessaryordesirableinconnectionwiththeissueoftheSecuritiesandtogiveeffecttotheseresolutions,including,withoutlimitation,thefollowing:

i) approve, adopt, sign, execute, issue and file,wherever required all documents, agreements,undertakings, deeds, declarations etc. as maybenecessaryinconnectionwiththeissueoftheSecurities including the offer documents suchas Red Herring Prospectus/Prospectus, listingapplication(s) with Registrar of Companies,SEBI, Stock Exchanges (whether in India orabroad)andotherAppropriateAuthorities;

ii) seeking,ifrequired,theconsentoftheCompany’slenders, parties with whom the Company hasentered into various commercial and otheragreements, all concerned government andregulatory authorities in India or outside India,andanyotherconsentsthatmayberequiredinconnection with the issue and allotment of theSecurities;

iii) giving or authorizing the giving, by concernedpersons, of such declarations, affidavits,certificates,consentsandauthoritiesasmayberequiredfromtimetotime;and

iv) settlinganyquestions,difficultiesordoubtsthatmay arise in regard to any such issue or allotment ofSecuritiesasitmayin itsabsolutediscretiondeemfit;and

v) enter into and execute arrangements /agreementswithLeadManagers/Underwriters /Guarantors / Depository(ies) / Custodians /Payment & Collection Agents / Advisors /Banks /Trustees/MerchantBankers/PractisingChartered Accountant / Practising CostAccountant / Practising Company Secretaryand all such agencies as may be involved orconcerned and to remunerate all such Lead Managers, Underwriters and all other AdvisorsandAgenciesbywayofcommission,brokerage,fees,expensesincurredinrelationtotheissueofequitysharesorFCCBsandotherexpenses, ifanyorthelike.

RESOLVED FURTHER THAT theBoardbeand ishereby authorized to determine the terms of issueincluding the class of investors, time, securities tobe offered, number of securities, series, tranches,issue price, tenor, interest rate, premium/discount,listing or otherwise howsoever, as it may think fitand to do all such acts, deeds and things, as itmay, in its absolute discretion, consider necessary,

expedient or desirable including appointment ofintermediariesandtosignandexecuteanydeed(s)/ document(s) / undertaking(s) / agreement(s) /paper(s) /underwriting(s)andalsotodelegatealloranyoftheabovepowers,asmayberequiredtogiveeffecttothisresolutionorasotherwiseconsideredbytheBoardtobeinthebestinterestoftheCompany.”

By order of the BoardFor India Glycols Limited

Place: Noida Ankur JainDate : 5thAugust,2016 Company SecretaryRegisteredOffice:A-1,IndustrialArea,BazpurRoad,Kashipur-244713,DistrictUdhamSinghNagar,UttarakhandCIN:L24111UR1983PLC009097TelephoneNo.:+91-5947-269000,269500Fax:+91-5947-275315,269535Website:www.indiaglycols.come-mail:[email protected]

NOTES:1. A Member entitled to attend and vote at the Annual

General Meeting (AGM) is entitled to appoint one or more proxies to attend and vote on a poll instead of himself/herself. The proxy need not be a member of the Company. The instrument of Proxy(ies), in order to be effective, must be deposited at the Registered Office of the Company, duly completed and signed, not less than 48 hours before the commencement of the meeting. A Proxy form is enclosed.

A person can act as proxy on behalf of members not exceeding 50 (Fifty) and holding in the aggregate not more than 10% (Ten percent) of the total share capital of the company carrying voting rights. A member holding more than 10% (Ten percent) of the total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder.

2. CorporateMembersintendingtosendtheirauthorizedrepresentativestoattendtheAGMarerequestedtosendtotheCompanyacertifiedcopyoftherelevantBoardResolution authorizing their representatives to attendandvoteontheirbehalfattheAGM.Members,ProxiesandAuthorizedRepresentativesarerequestedtobringtothemeeting,theAttendanceSlipenclosedherewith,dulycompletedandsigned,mentioningthereindetailsoftheDPIDandClientID/FolioNo.etc.

3. TheExplanatoryStatementpursuant tosection102of the Companies Act, 2013, in respect of SpecialBusinessunderItemnos.4,5,6and7oftheNotice,isappendedhereto,andformspartofthisNotice.



4. TheRegisterofMembersandShareTransferBooksof the Company will remain closed from Tuesday,the 20th September, 2016 to Saturday, the 24th September,2016(bothdaysinclusive)forAGM.Thenames of the shareholders, whose share transferrequestarereceivedinorder,eitherattheHeadoffice/RegisteredofficeoftheCompanyorattheRegistrars&ShareTransferAgents,M/sMCSShareTransferAgentLimited,F-65,1stFloor,OkhlaIndustrialArea,Phase-I,NewDelhi-110020(‘RTA’),beforethebookclosure,shallbeincludedinthemembersregisterasonthedateoftheAGM.

5. Pursuant to the provisions of Section 205A and205Cof theCompaniesAct,1956,dividend for thefinancialyearended31stMarch,2009,whichremainunclaimed/unpaid for a period of 7 years from thedatesuchdividendfirstbecomedueforpayment,willbetransferredonorbefore20thSeptember,2016tothe Investor Education and Protection Fund (IEPF)establishedbytheCentralGovernment.Pursuanttotheprovisionsof InvestorEducationandProtectionFund(Uploadingofinformationregardingunpaidandunclaimed amounts lying with companies) Rules,2012,theCompanyhasuploadedthedetailsofunpaidand unclaimed amounts lying with the Companyon the website of the Company (www.indiaglycols.com)under ‘InvestorRelations’section. Ithasbeennoticed thatsomeshareholdershavenotencashedthedividendwarrant(s)sofarforfinancialyearended31stMarch,2009oranysubsequentfinancialyears.SuchshareholdersarerequestedtomaketheirclaimtotheCompanyinrespectoftheirunclaimed/unpaiddividend,before thesame is transferred to IEPFasaforesaid. The Shareholders are requested to notethatnoclaimshalllieagainsttheCompanyinrespectofsaidunclaimedandunpaiddividend,iftransferredtotheIEPFonduedates.

6. As the present number of rotational Directors isless than 2/3rd of the total number of Directors,Shri M.K. Rao, Executive Director whoseappointment is not subject to retire by rotationshall retire by rotation at the ensuing AnnualGeneralMeetingandiseligibleforre-appointmentas per Item No. 2 of this notice. His retirementand simultaneous re-appointment shall not affecthis holding and continuing to hold the office ofExecutiveDirectorintermsofhisappointment.

7. Voting through electronic means:I. IncompliancewithprovisionsofSection108of

the Companies Act, 2013 and Rule 20 of theCompanies (Management and Administration)Rules, 2014 as amended by the Companies(Management and Administration) AmendmentRules,2015andRegulation44oftheSecuritiesandExchangeBoardofIndia(ListingObligationsand Disclosure Requirements) Regulations,

2015(“SEBIListingRegulations”),theCompanyis pleased to provide the Members facilityto exercise their right to vote on resolutionsproposedtobeconsideredattheAnnualGeneralMeeting(AGM)byelectronicmeansandallthebusiness may be transacted through e-votingservices. The Members are provided with thefacility of casting the votes using an electronicvoting system from a place other than venueof theAGM (“remote e-voting”) as providedbyNational SecuritiesDepository Limited (NSDL).Resolution(s) passed by Members throughe-votingis/aredeemedtohavebeenpassedasiftheyhavebeenpassedattheAGM.

II. The facility forvoting throughballotpapershallbemadeavailableatthevenueoftheAGMandtheMembersattending theAGMwhohavenotalreadycast theirvotebyremotee-votingshallbeabletoexercisetheirrightattheAGMthroughballotpaper.

III. TheMemberswhohavecasttheirvotebyremotee-voting prior to theAGMmay also attend theAGMbutshallnotbeentitled tocast theirvoteagainattheAGM.

IV. The remote e-voting period commences on Tuesday, the 20th September, 2016 (9:00 A.M.) and ends on Friday, the 23rd September, 2016 (5:00 P.M.). During this period, Members of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date of 17th September, 2016, may cast their vote by remote e-voting. The remote e-voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by the Member, he/she shall not be allowed to change it subsequently or cast the vote again.

V. Members can opt for only onemode of votingi.e.eitherbyBallotFormorremotee-voting. IncaseMemberscasttheirvotesthroughboththemodes, voting done by remote e-voting shallprevailandvotescastthroughBallotFormshallbetreatedasinvalid.

VI. Theprocessandmannerforremotee-votingareasunder:A.In case a Member receives an e-mail from

NSDL[forMemberswhoseemailaddressesareregisteredwiththeCompany/DepositoryParticipant(s)]:

(1) Opene-mailandopenPDFfileviz;“IGLe-Voting.pdf”withyourClientIDorFolioNo.aspassword.ThesaidPDFfile contains your user IDandpassword/PIN for remote e-voting.Pleasenotethatthepasswordisaninitialpassword.



(2) Launch internet browser by typingthe following–URL: https://www.evoting.nsdl.com/

(3) Clickon“Shareholder–Login”

(4) Putuser IDandpasswordas initialpassword/PIN noted in step (1)above.ClickLogin.

(5) Then Password change menuappears. Change the password/PIN with new password of yourchoice. The new password shallcomprise of minimum 8 digits/characters or combination thereof.Note new password. It is stronglyrecommended that you do not share your password with any other person and that you take utmost care to keepyourpasswordconfidential.

(6) Homepageofremote“e-voting”willopen. Click on remote “e-Voting:ActiveVotingCycles”.

(7) Select “REVEN” (Electronic VotingEventNumber)ofIndiaGlycolsLimited.

(8) Now you are ready for e-voting as“CastVote”pageopens.

(9) On the voting page, you may castyour vote by selecting appropriateoption and click “Submit” and also“Confirm”whenprompted.

(10) Upon confirmation, the message“Vote cast successfully” will bedisplayed.

(11) Once you have voted on theresolution,youwillnotbeallowedtochange/modifyyourvote.

(12) Corporate/InstitutionalMembers(i.e.otherthanindividuals,HUF,NRIetc.)are required to send scannedcopy(PDF/JPG Format) of the relevantBoard Resolution/ Authority letteretc.togetherwithattestedspecimensignature of the duly authorizedsignatory(ies) who are authorizedto vote, to the Scrutinizer throughe-mail to [email protected] (emailaddressofScrutinizer)withacopy marked to [email protected]

B.IncaseaMemberreceivesphysicalcopyoftheNoticeofAGM[forMemberswhoseemailIDs are not registered with the Company/

Depository Participant(s) or requestingphysicalcopy]:i) Initial password is provided in the below

given format in the communication withrespecttovotingbyelectronicmeansandis encloded with the Notice and formsintegralpartofit:

REVEN (Remote E-Voting

event number)

User ID

Pass-word/PIN

ii) PleasefollowallstepsfromSl.No.(2)toSl.No.(12)above,tocastvote.

VII. In case of any queries, you may refer theFrequently Asked Questions (FAQs) forMembersandremotee-votingusermanualformembersavailableatthe‘Downloads’sectionofwww.evoting.nsdl.com orcallontollfreeno.:1800222990

VIII. IfyouarealreadyregisteredwithNSDLforremotee-voting thenyoucanuseyourexistinguser IDandpassword/PINforcastingyourvote.

IX. You can also update your mobile numberande-mail id in theuserprofiledetailsof thefolio which may be used for sending futurecommunication(s).

X. The voting rights of shareholders shall be inproportion to their shares of the paid-up equityshare capital of theCompany as on the cut-offdate of Saturday, the 17th September, 2016. ApersonwhoisnotaMemberasonthecutoffdateshouldtreatthisNoticeforinformationonly.

XI. Anyperson,whoacquiressharesoftheCompanyand become member of the Company afterdispatch of the Notice of AGM and holdingsharesasofthecut-offdateofSaturday,the17th September, 2016,may obtain the login ID [email protected] or [email protected]. However, ifyouarealreadyregisteredwithNSDLforremotee-votingthenyoucanuseyourexistinguserIDandpasswordforcastingyourvote.Ifyouforgotyourpassword,youcanresetyourpasswordbyusing“ForgotUserDetails/Password” option availableon www.evoting.nsdl.comorcontactNSDLatthefollowingtollfreeno.:1800-222-990.

XII. Apersonwhosenameisrecordedintheregisterof members or in the register of beneficialownersmaintained by the depositories as onthe cut-off date only shall be entitled to availthefacilityofremotee-votingaswellasvotingattheAGMthroughballotpaper.

XIII. ShriAshishSaxena(FCSno.6560)ofAshishSaxena & Co., Company Secretaries, having



theirofficeatA-32,NyayKhand-I,Indirapuram,Ghaziabad-201014, Uttar Pradesh has beenappointed by the Board of Directors as theScrutinizertoscrutinizethevotingandremotee-voting process in a fair and transparentmanner.

XIV. TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseofballotpaperforallthosemembers who are present at the AGM buthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

XV. The Scrutinizer shall after the conclusion ofvotingattheAGM,willfirstcountthevotescastatthemeetingandthereafterunblockthevotescastthroughremotee-votinginthepresenceofatleasttwo(2)witnessesnotintheemploymentoftheCompanyandshallmake,notlaterthan48(FortyEight)hoursoftheconclusionoftheAGM,aconsolidatedScrutinizer’sReportofthetotalvotescast in favouroragainst, ifany, tothe Chairman or a person authorized by himinwriting,whoshallcountersignthesameanddeclaretheresultofthevotingforthwith.

XVI. TheResultsof theAGMshallbedeclaredbytheChairmanorpersonauthorizedoranyoneof thedirectorof theCompanyafter theAGMwithintheprescribedtimelimits.

XVII. TheResultsdeclaredalongwiththeScrutinizer’sReport shall be placed on the Company’swebsite www.indiaglycols.com and on the website of NSDL and communicated to BSELimited(BSE)andNationalStockExchangeofIndiaLimited(NSE),accordingly.

8. MEMBERSAREREQUESTEDTO: A. Immediatelynotifyanychangeofaddress,e-mail

address,changeofname,contactnumbers,bankdetailssuchasbankaccountnumber,nameofthebankandbranchdetails,MICRcode, IFSCcode, bank mandates, nominations, power ofattorney, etc. and their Permanent AccountNumber (PAN) to their depository participant(DP)inrespectoftheirholdinginElectronicFormand to the Company’s RTA in respect of theirholding in physical form. SEBI has mandatedthesubmissionofPermanentAccountMember(PAN)byeveryparticipantinsecuritiesmarket.

Non-resident Indian members are requestedto immediately inform the RTA, change intheir residential address on return to India forpermanentsettlementandtheparticularsoftheirbankaccountmaintainedinIndiawithcompletename, branch, account type, account numberandaddressofthebankwithpincodenumber,ifnotfurnishedearlier.

B. Send their queries, if any, on the financialstatements or on any agenda item proposed in thenoticeofAGMat least10daysprior to thedateofAGMat theCompany’sHeadOfficeatPlot No. 2-B, Sector-126, Distt. Gautam BudhNagar,Noida-201304,UttarPradesh,toenabletheCompanytocollecttherelevant informationandmakeavailableattheAGM.

C. FilltheattendanceslipforattendingthemeetingandthosewhoholdthesharesindematerializedformarerequestedtobringtheirClientIDandDPIDnumbersforeasyidentificationofattendanceattheAGM.

D. Send their shares for dematerialization tothe Company’s RTA, if so far, are not held indematerialized form, as the Company comesundercompulsorydematasperdirectiveissuedbytheSEBI.

E. Note that relevant documents referred to inthe accompanying Notice and the Statementareopen for inspectionby themembersat theRegisteredOfficeoftheCompanyonallworkingdays, exceptSaturdays, duringbusinesshoursup to the date of the AGM and shall also beavailableforinspectionattheAGM.

F. Note that in terms of the provisions of Section136 of the Companies Act, 2013 (“the Act”)readwithRule11oftheCompanies(Accounts)Rules,2014,serviceofnotices/documentstothememberscanbemadethroughelectronicmode.Memberswho have registered their e-mail IDswithdepositoriesorwiththeCompany/RTAarebeing sent this Notice along with the AnnualReport of the Company with Attendance SlipandProxy Form by e-mail. Also, theMemberswhohavenotregisteredtheire-mailaddress,thephysicalcopiesarebeingsent to themthroughany recognized mode of delivery as specifiedunderSection20oftheAct.

The notice of the 32nd AGMalongwithAnnualReportoftheCompany,attendanceslipandproxyform will also be available on the Company’swebsite www.Indiaglycols.com under “InvestorRelations”section.

In order to receive faster communication and enable the Company to serve the members better and to promote the “Green Initiative”, members are requested to register their e-mail address(es) and changes there in from time to time, by directly sending the relevant e-mail address along with the details of name, address, Folio No., shares held:

i) To the Registrar and Share Transfer Agent, M/s MCS Share Transfer Agent Limited at the address at Note No. 4 above for shares held in physical form and;



ii) In respect of shares held in demat mode, also provide DP ID/ Client ID with the above details and register the same with their respective Depository Participants.

Uponregistrationofthee-mailaddress(es),theCompanyproposestosendNotices,AnnualReportandsuchotherdocumentstothoseMembersviaelectronicmode/e-mail.

9. IncaseofjointholdersattendingtheAGM,theMemberwhosenameappearsasthefirstholderintheorderofnamesaspertheRegisterofMembersoftheCompanywillbeentitledtovote.

10. AspertheprovisionsofSection72oftheAct,thefacilityformakingnominationorcancellation/variationinnominationalreadymade isavailable for theMembers in respectof thesharesheldby them.Memberswhohavenot yetregisteredtheirnominationarerequestedtoregisterthesamebysubmittingFormNo.SH-13formakingnominationandFormNo.SH-14forcancellation/variationasthecasemaybe.ThesaidformscanbedownloadedfromtheCompany’swebsitewww.indiaglycols.com(under‘InvestorRelations’section).Membersholdingsharesinphysicalformmay submit the same toM/sMCSShare TransferAgent Limited, theRegistrar &Share TransferAgent.Membersholdingsharesinelectronicformmaysubmitthesametotheirrespectivedepositoryparticipant(s).

11. The relevant details as required under Regulation 36(3) of SEBI Listing Regulations for theDirector(s) to beappointed/re-appointedareasunder:

Name of Director Shri M.K. Rao Shri U. S. BhartiaAge 58 62 DateofappointmentontheBoard

01.05.2008 29.11.1996

Qualifications B.Tech. (Chemical Engineering) fromAndhra University College of EngineeringandM.Tech.(ChemicalPlantDesign)fromIIT,Madras

BachelorofCommercewithHonoursfromCalcuttaUniversity

ExpertiseinSpecificfunctionalArea

ShriRaohasanoverallexperienceofover30yearsofPlantoperations,maintenanceand projects execution. Shri Rao isinvolved in the day to day managementof the Manufacturing Plant at Kashipurand various on-going projectswith regardto conception, planning and executionthereofandhasbeenguidingtheactivitiesall through. Shri Rao has lead the teamof processing engineers in developingengineering packages for variousdebottlenecking/plantexpansions,processimprovement schemes and cost effectiveenergyconservationschemes.

ShriU.S.Bhartia isan industrialistandhasover37yearsofexperienceofmanagingvarioustypesof Industries. Shri Bhartia is involved in the daytodaymanagerialactivitiesof theCompanyandtakes keen interest in various on-going projectsrightfromconception,planningandexecutionandhas been guiding the activities of theCompany.Shri Bhartia is associatedwith theCompany forover 19 years as Managing Director and is theChairmanoftheCompanysinceMarch,2008.

Directorships of otherListedCompanies

Nil 1.HindustanWiresLtd.2.PolylinkPolymers(I)Ltd.

Committeemembership(s)/Chairmanship(s) of otherListedCompanies

Nil 1.HindustanWiresLtd.– Member - Audit Committee, Nomination andRemunerationCommittee

2.PolylinkPolymers(I)Ltd.– Chairman - Stakeholders’ RelationshipCommittee

Member - Audit Committee, Nomination andRemunerationCommittee

Share holding as on 31.03.2016

Nil 4,48,722

Relationship betweenDirectorsinter-se

Nil Smt.JayshreeBhartia isthespouseofShriU.S.Bhartia

12. RoutemapshowingdirectionstoreachthevenueoftheThirtySecondAGMisannexedtotheNotice.13. Nogifts/couponswillbedistributedattheAGM.



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

ITEM NO. 4TheBoardofDirectors(the“Board”)oftheCompanyonthe recommendation of this Audit Committee, approvedtheappointmentofM/sR.J.Goel&Co.,CostAccountantstoconduct theauditofcost recordsof theCompany forthefinancialyearended31st March,2017.PursuanttotheprovisionsofSection148oftheCompaniesAct,2013readwithRule14oftheCompanies(AuditandAuditors) Rules, 2014, the remuneration payable to theCostAuditor, as recommendedby theAuditCommitteeand approved by the Board has to be ratified by themembersoftheCompany.Accordingly, consent of the members is being soughtby way of an ordinary resolution for ratification of theremuneration paid to the Cost Auditor for the financialyear2016-17.NoneoftheDirectors/KeyManagerialPersonneloftheCompany or their respective relatives are in any way,concerned or interested, financially or otherwise, in theOrdinaryResolutionatItemNo.4oftheNotice.

TheBoardrecommendstheresolutionsetoutatItemNo.4ofthenoticeforapprovalofthemembersasanOrdinary Resolution.

ITEM NO. 5TheMembers of theCompany at their Annual GeneralMeeting held on 27th September, 2011 appointedShriU.S.Bhartia,asChairmanandManagingDirectoroftheCompanyforaperiodof5yearsfrom1stApril,2011to31stMarch,2016.Shri Bhartia, aged about 62 years is a Bachelor ofCommerce with Honours from Calcutta University.ShriBhartiawasappointedasaDirectorandManagingDirectoroftheCompanyw.e.f.29thNovember,1996andis the Chairman of the Company since March, 2008.Shri Bhartia is involved in the day to daymanagementof the Company and takes keen interest in all theon-goingprojects right fromconceptionandplanning tillits execution and has been guiding the activities of theCompanyallthrough.ShriBhartiaholds4,48,722sharesoftheCompany.

Considering Shri Bhartia’s involvement and contributionto the growth of the Company and for the futurebenefitsof theCompany, theBoardofDirectorson therecommendation of the Nomination and RemunerationCommitteeatitsmeetingheldon11thFebruary,2016,hasapprovedthere-appointmentofShriBhartiaasChairmanandManagingDirectorforafurtherperiodof5yearsfrom1stApril,2016till31stMarch,2021subjecttotheapprovalofthemembersoftheCompany.

ShriBhartia isalsoaDirectoron theBoardofHindustanWires Ltd., Polylink Polymers (I) Ltd., Lund & BlockeleyPvt. Ltd., Kashipur Holdings Ltd., IGL Finance Ltd., JBCommercial Co. Pvt. Ltd., Facit Commosales Pvt. Ltd.,

AjayCommercialCo.Pvt.Ltd.,J.Boseck&Co.Pvt.Ltd.,SupreetVyapaarPvt.Ltd.,IGLInfrastructurePvt.Ltd.,JBTrusteePvt.Ltd.,PBTrusteePvt.Ltd.,PJTrusteePvt.Ltd.andUSBTrusteePvt.Ltd.HeisthememberofStakeholders’RelationshipCommitteeandMember/Chairmanof theFinanceCommittee,CSRCommittee, Risk Management Committee and ShareTransferCommitteeoftheCompany.ShriBhartiaisalsothememberoftheAuditCommitteeandNomination andRemunerationCommittee of HindustanWiresLtd.andPolylinkPolymers(I)Ltd.Also,he is theChairmanoftheStakeholders’RelationshipCommitteeofPolylinkPolymers(I)Ltd.During the FY 2015-16, Shri Bhartia attended all themeetingsoftheBoard/Committee(s)oftheCompany.Membersmaynotethat,inviewofthelossesbeingincurredbytheCompanysinceFY2012-13includingduringtheFY2015-16,managerialremunerationisrestrictedtothelimitsasspecifiedunderSection197andScheduleVoftheCompaniesAct,2013(“theAct”).However,keepinginviewofShriBhartia’spresentandfutureresponsibilities,his previous remuneration paid, industry norms and hisrole in placing the Company in pre-eminent position intheIndustry,thesameisnottheadequatecompensation.Accordingly,theBoardinpursuancetotheprovisionsofSection197 readwithScheduleVof theAct,approvedthe remuneration for a period of 3 years from 1st April,2016 which is at a reasonable level in line with theremunerationlevelsprevailingintheIndustry,asperthedetailsasmentionedintheresolutionatItemNo.5whichshallbe furthersubject to theapprovalofMembersandCentralGovernmentintermsoftheprovisionsoftheAct,ifrequired.The information required pursuant to the provisions ofSectionIIofPartIItoScheduleVoftheActisasunder:I. GENERAL INFORMATION:

(i) Nature of Industry India Glycols Limited is engaged in the

manufacturing and marketing of Chemicalsincluding specialty Chemicals, Ethyl Alcohol(Potable), Nutraceutical and herbal extraction,Natural Gum & its derivatives, Industrial Gases,etc.havingaturnoverofapprox.` 2,330Crores.The Company has the advantage of producingChemicals through agro route (green route)while theothermanufacturers aremanufacturingthroughPetroleum.TheCompanyhasdiversifieditsactivities fromMonoEthylGlycols (MEG)andEthyleneOxide(EO)derivativestootherspecialtychemicals,EthylAlcohol(potable),NaturalGumsand its derivatives, neutraceuticals and HerbalextractionsandIndustrialGases.

India Glycols Limited is a growing industry in thecurrenteconomicscenarioduetoinevitable



demand of Pharmaceutical & Nutraceuticalindustries, Food industries, Textile industry,AutomobileindustryandPotablesegment.IndiaGlycols Limited is the leading manufacturer ofChemicals including MEG, Ethoxylates andGlycolEthers throughMolassesroute,which ismostappreciableduetoeco-friendlynatureinalloverworld.

(ii) Date of commencement of commercial production

1st January,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 The relevant financial figures (Audited) for the

last5yearsareasunder:-(Amount in ` crores)

Particulars 2011-12

2012-13

2013-14

2014-15

2015-16

Paid up sharecapital

27.88 30.96 30.96 30.96 30.96

Reserves andsurplus

454 598 475 424 396

Total Turnoverincluding other income

2633 3347 2914 2601 2329

Profit/(loss)be-fore Deprecia-tion,exceptionalitemandTax

234 247 105 22 61

Depreciationandexceptionalitem

77 82 275 138 113

Profit/(loss)beforeTax

157 165 (170) (116) (52)

ProvisionforTax

52 44 (50) (55) (18)

Profit/(loss)afterTax

105 121 (120) (61) (34)

(v) Foreign Investments or collaborators, if any: NIL

II. INFORMATION ABOUT THE APPOINTEE:(a) Background Details ShriU.S.Bhartiaagedabout62yearshasoverall

experienceofover37yearsofmanagingvarioustypes of Industries. Shri Bhartia is associatedwith IndiaGlycolsLimited forover19yearsasManaging Director and involved in the day today managerial activities of the Company. Asis evident from his experience and industrialist

background,ShriBhartia is ideally suited to thenatureofourIndustry,thebenefitsofwhich,theCompanyhasreapedovertheyears.

(b) Past Remuneration (i) ForFY2013-14:`267.03lacs (ii)ForFY2014-15:`137.30lacs (iii)ForFY2015-16:`137.33lacs(c) Recognition or Awards Shri Bhartia is a renowned personality in

the Chemical industries and had immenselycontributed to the nation in developing andintroducingqualitychemicalincludingMEGandotherspecialtychemicals,EthylAlcohols,NaturalGumsetc.HewasconferredasBusinessLeaderfortheyear2013.

Also,underhisableleadership,theCompanyhasbeenawardedthegrandgoldawardforthesixthyear in a row byMonde Selection Committee,Belgium, for attaining high level of quality forExtraNeutralAlcohol(ENA).

(d) Job Profile and his Suitability As stated above, Shri Bhartia is a Bachelor of

Commerce with Honours from the Universityof Calcutta with over 37 years of experienceofmanaging various types of Industries and isvestedwithsubstantialpowersofmanagementof the Company. He is associated with IndiaGlycolsLimited forover19yearsasManagingDirectorandinvolvedinthedaytodaymanagerialactivities of the Company. As is evident fromhis experience and industrialist background,ShriBhartiaisideallysuitedtothenatureofourIndustry,thebenefitsofwhich,theCompanyhasreapedovertheyears.

Under his able leadership, the Company hasgrownfromsingleproductofMEGatsingleplantat Kashipur to multi products including EOD,Glycol Ethers, Ethyl Alcohol (Potable), NaturalGums, Industrial Gases, Nutraceuticals HerbalExtraction, Sugar etc. at four different plantlocations including Sugar plant at Saharanpur,UttarPradesh.Theplant capacityofMEGandequivalenthasbeen increasedfrom60MTperday in the year 1996 to presently 575MT perday. The Company’s turnover has since beenincreasedfrom`122Croresintheyear1996to`2,330Croresintheyear2015-16.

The Company is also exporting its productsto approx. 65 countries and theCompany hasregisteredanexportssalesvalueof 873Croresin the FY 2015-16.The FixedAssets base hasbeen increased from `156 Crores in the year1996to`1881CroresduringtheFY2015-16.

Under the diversification plan initiated by ShriBhartia, the Company has also set up EthylAlcohol Division at its distilleries in KashipurandGorakhpurwith an overall capacity of 725



KL per day and is among few Companies inthecountryhaving licenseofoperations inandsaleofCountryLiquorandIndianMadeForeignLiquor(IMFL)intwostatesofUttarPradeshandUttarakhand. The sales value of Ethyl AlcoholDivisionhas increased from` 67Crores in theyear 2006 to `1,150Croresintheyear2016.

Underhisguidance,theCompanyhasalsosetupanIndustrialGasesdivisionproducingOxygen,NitrogenandArgonwith anoverall capacity of13000 NM3/h. The Company has also set upCarbondioxideproducingplantatKashipurwithacapacityof160MT/day.

TheCompanyhasalsomodifieditsexistingGuarGumPlant to produce value added derivativesfor Oil Field Industry, specialty derivatives forfood&paperindustryandTextileIndustry.

As a further step towards diversification plansinitiated byShri Bhartia, theCompany has setupa100%ExportOrientedundertaking (100%EOU) by the name of Ennature Bio-pharmadivision. The Company has taken 47 acresland on lease from Uttarakhand government,where it is growingawide variety ofmedicinalplants etc. The Company has also set up aSupercritical Fluid Extraction facility (SCFE)atDehradun,whichwill beCGMPcompliance.The unit is used for extraction ofDietaryFoodsupplements,NaturalColors,Health care fruits& vegetables, Herbal Extracts, Fruit flavors &fragrances & Spice flavors & extracts. Futurethrust is to become supplier of more refinednaturalActivePharmaceutical Ingredients(API)& intermediates to pharmaceutical & naturalhealthproductindustries.Alltheseareveryhighvalueaddedproducts.

All the four plants of the Company are beingcontrolled from the head office at Noida, U.P.underthesupervision,guidanceanddirectionofShriBhartia,whotakeskeeninterestinvariouson-going projects conception, planning andexecution and has been guiding the activitiesof the Company all through. Since variousprojects of the Company are in the advancedstageofcompletion,ShriBhartia’sguidanceanddirectionwouldcontinuetobeofgreatassetandadvantagetotheCompany.

TheworkprofileofShriU.S.Bhartiahasincreasedalotduetothecapacityincrease,establishmentofnewplantsatdifferentlocations,diversificationofactivitiesintonewareasofoperationsetc.

(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

The prevalent levels of remuneration inmanufacturing industries, in general and theindustry in particular are higher. Taking intoaccount the turnover of the Company andresponsibilities being discharged by Shri U.S.Bhartia and his contribution to the growth ofthe Company, the proposed remuneration isreasonable and commensurate with the size/natureofoperationsoftheCompanyandisalsoinlinewiththeremunerationlevelsintheIndustryandbenefitshisposition.

(g) Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial personnel, if any.

ShriU.S.BhartiaisoneofthePromotersoftheCompanyandhasbeeninstrumentalinbringingsignificantgrowth in thevolumeof itsbusinesssince inception. He is not related to any otherDirector, Manager and other Key ManagerialPersonneloftheCompanyexceptSmt.JayshreeBhartia,Director,whoisrelatedasspouse.

III. OTHER INFORMATION:(a) Reasons of loss or inadequacy of Profits TheperformanceoftheCompanyremainedweak

onaccountoflowerMonoethyleneGlycol(MEG)prices due to reduced crude oil prices. Also,the demand for Guar Gum remained low dueto sluggish demand from themajor consumingsector which is US shale. The performancewas further affected as domestic prices of ourfeedstockviz.molassesandalcohol,werehighon account of poor availability of ethanol anddiversionofethanoltowardstheimplementationof Ethanol BlendingwithPetrol (EBP)Programof Government of India at an unrealistic andexorbitantprice resulting ina sharp increase inthepricesofethanollocally.

(b) Steps taken or proposed to be taken for improvement

Under the current challenging businessenvironment,theCompanyismakingallpossibleeffortstoincreasetheturnover,managingcosts,improveproductivity,planningandmanagement.Alsotodiversifythebusinessandexploringnewmarketsandlaunchingnewproducts.Inthisline,theCompanyhadlauncheditspremiumproductsunder the brand name of “V2OVodka” in threeflavorsviz.Orange,GreenAppleandSmoothinVodkacategoryandSoulmateinWhiskycategory.TheCompany has also extended the launch ofBeachHousePremiumXXXRum.BeachHousePremiumRumforsupplytoIndianDefenseforcesthroughCSDhasbeenapproved.

(c) Expected increase in productivity and profits in measurable terms

TheCompanyexpects increase in the turnoverinthequantum.



TheMembersmayalsonotethatearlier,duetoinadequacyoftheprofits,theCompanyhadapproachedtheCentralGovernmentandtheCentralGovernmentvideits lettersdated 21stApril, 2010and24thOctober, 2011approveda remunerationof` 2,67.03 lacs for theperiod from1st April, 2008 to 31stMarch, 2011 and from the period 1st April,2011to31stMarch,2014,respectively.

Further,duringtheFY2014-15and2015-16,ShriBhartia was paid a remuneration of ` 137.30 lacs asapprovedbyCentralGovernmentvideitsapprovaldated22ndJanuary,2015.

ConsideringtheearlierapprovalsgrantedbytheCentralGovernmentandtheresponsibilitiesandfunctionsofShriBhartia, the Board of Directors, on the recommentationof Nomination and Remuneration Committee, approvedremuneration payable to Shri Bhartia, as mentioned initemNo.5ofthisNotice.

Accordingly,approvalof theMembers issoughtbywayofspecialresolutionforShriBhartia’sre-appointmentforafurthertermof5yearsw.e.f.1stApril,2016andalsoforpaymentofremunerationforaperiodof3yearsw.e.f.1st April,2016.ThepaymentofremunerationshallfurtherbesubjecttoapprovaloftheCentralGovernment.

Theabovemaybetreatedasanabstractandmemorandumsetting out the terms of contract of appointment ofShriU.S.BhartiaunderSection190oftheAct.

Copyofrelevantdocumentsincludingthememorandum(s)setting out the terms of remuneration, are open forinspectionbytheMembersattheRegisteredOfficeoftheCompanybetween11.00a.m.to1.00p.m.onallworkingdaysuptothedateofAnnualGeneralMeetingandshallalsobeavailableattheMeeting.

Except Shri U.S. Bhartia and Smt. Jayshree Bhartia,noneoftheDirectors/KeyManagerialPersonneloftheCompany or their respective relatives are in any way,concerned or interested, financially or otherwise, in theSpecialResolutionatItemNo.5oftheNotice.

TheBoardofDirectorsrecommendtheresolutionatItemNo.5ofthisNoticeforapprovaloftheMembersbywayofa Special Resolution.

ITEM NO. 6TheMembers of theCompany at their AnnualGeneralMeeting held on 18th September, 2013 appointed ShriM.K. Rao as an Executive Director of the Companyw.e.f.1stApril,2013foraperiodof5years.Further,theBoard of Directors on the recommentation of erstwhileRemuneration Committee, revised the remunerationw.e.f.1stApril,2013foraperiodnotexceedingthree(3)years31stMarch,2016whichwasalsoapprovedbytheMembersvidetheirresolutiondated15thMarch,2014.

ShriM.K.Raoagedabout58yearsisB.Tech.(ChemicalEngineering) from Andhra University College ofEngineering andM.Tech. (ChemicalPlantDesign) fromIIT, Madras. Considering the contributions of Shri Raoin the growth of the Company and his involvement in

the future assignments, the Board of Directors on therecommendation of the Nomination and RemunerationCommitteeoftheBoardofDirectorsatitsmeetingheldon11thFebruary,2016,hasapprovedthepaymentofsameremuneration (as in viewof the financial position of theCompany,ShriRaohasvolunteered forno increase) toShri Rao as per the details mentioned in the resolution at ItemNo.6ofthenoticeforafurtherperiodof2yearstill31stMarch,2018(i.e.fortheremainingperiodofhistenure)whichshallbesubjecttotheapprovaloftheMembersoftheCompany in terms of the provisions of Section 197andScheduleVoftheAct.

Shri Rao does not hold directorship in any other company anddoesnotholdanysharesintheCompany.Heisnotrelated to any other director, manager and other KeyManagerialPersonneloftheCompany.Hehasattendedallmeetingsof theBoard/CommitteeheldduringtheFY2015-16.

The information required pursuant to the provisions ofSectionIIofPartIItoScheduleVoftheActisasunder:

I. GENERAL INFORMATION:

(i) Nature of Industry

India Glycols Limited is engaged in the manufacturing and marketing of Chemicalsincluding specialty Chemicals, Ethyl Alcohol(Potable), Nutraceutical and herbal extraction,NaturalGum&itsderivatives,IndustrialGases,etc.havingaturnoverofapprox.`2,330crores.TheCompanyhas theadvantageof producingChemicals through agro route (green route)whiletheothermanufacturersaremanufacturingthroughPetroleum.TheCompanyhasdiversifieditsactivitiesfromMonoEthylGlycols(MEG)andEthyleneOxide(EO)derivativestootherspecialtychemicals,EthylAlcohol(potable),NaturalGumsand its derivatives, neutraceuticals and HerbalextractionsandIndustrialGases.

India Glycols Limited is a growing industry in thecurrenteconomicscenarioduetoinevitabledemand of Pharmaceutical & Nutraceuticalindustries, Food industries, Textile industry,Automobile industry and Potable segment.India Glycols Limited is leading manufacturerof Chemicals including MEG, Ethoxylates andGlycolEthers throughMolassesroute,which ismostappreciableduetoeco-friendlynatureinalloverworld.

(ii) Date of commencement of commercial production

1st January,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

The relevant financial figures (Audited) for thelast5yearsareasunder:-

(Amount in ` crores)

Particulars 2011-12

2012-13

2013-14

2014-15

2015-16

Paid up sharecapital

27.88 30.96 30.96 30.96 30.96

Reserves andsurplus

454 598 475 424 396

Total Turnoverincluding other income

2633 3347 2914 2601 2329

Profit/(loss)be-fore Deprecia-tion,exceptionalitemandTax

234 247 105 22 61

Depreciationandexceptionalitem

77 82 275 138 113

Profit/(loss)beforeTax

157 165 (170) (116) (52)

ProvisionforTax

52 44 (50) (55) (18)

Profit/(loss)afterTax

105 121 (120) (61) (34)

v) Foreign Investments or collaborators, if any: NIL

II. INFORMATION ABOUT THE APPOINTEE:(a) Background Details ShriM.K.Raoagedabout58years isB.Tech.

(ChemicalEngineering) fromAndhraUniversityCollege of Engineering and M.Tech (ChemicalPlantDesign) from IIT,Madras.ShriRao hasanoverallexperienceofover30yearsofPlantoperations,maintenanceandprojectsexecution.He had joined the Company in the year 1988asDy.Manager (TechnicalServices) and roseto the level of Sr. Vice President and PlantHeadintheyear2005.Hehas ledtheteamofprocessingengineersindevelopingengineeringpackages for various debottlenecking/plantexpansions,processimprovementschemesandcosteffectiveenergyconservationschemes.HeisinvolvedinthedaytodaymanagementoftheManufacturing Plant at Kashipur and variouson-going projects with regard to conception,planning and execution thereof and has been

guidingtheactivitiesallthrough.(b) Past Remuneration (i) ForFY2013-14:`64.96lacs (ii) ForFY2014-15:`64.50lacs (iii)ForFY2015-16:`65.23lacs(c) Recognition or Awards NIL(d) Job Profile and his Suitability Asstatedabove,ShriM.K.Rao isaCorporate

Professional and holds B.Tech. (ChemicalEngineering) from Andhra University Collegeof Engineering and M.Tech. (Chemical PlantDesign)fromIIT,Madras.ShriM.K.Raoishasanoverallexperienceofover30yearsofPlantoperations,maintenanceandprojectsexecution.Shri Rao had joined the Company in the year1988asDy.Manager(TechnicalServices)androsetothelevelofSr.VicePresidentandPlantHeadintheyear2005.Hewaselevatedtotheposition ofExecutiveDirector in the year 2008andisinvolvedinthedaytodaymanagementoftheManufacturingPlantatKashipurandvariouson-going project with regard to conception,planning and execution thereof and has beenguiding the activities all through. Shri Raohas lead the team of processing engineers indeveloping engineering packages for variousdebottlenecking/plant expansions, processimprovementschemesandcosteffectiveenergyconservationschemes.

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

No.6oftheNotice.

(f) Comparative remuneration Profile with respect to industry, size of the Company, profile of the position and person

The prevalent levels of remuneration inmanufacturing industries, in general and theindustry in particular, are higher. Taking intoaccount the turnover of the Company andresponsibilitiesofShriM.K.Rao,theproposedremuneration is reasonableand in linewith theremuneration levels in the Industry, across thecountryandbefitshisposition.Also,thereisnoincrease in the Remuneration and is same as wasdrawnduringthepreviousyear.

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

Shri M.K. Rao is not related to anybody inthe Promoter Group or any other managerialpersonnel and has no pecuniary relationship with



theCompanyotherthantheremunerationbeingpaidtohim.

III. OTHER INFORMATION:(a) Reasons of loss or inadequacy of Profits TheperformanceoftheCompanyremainedweak

onaccountoflowerMonoethyleneGlycol(MEG)prices due to reduced crude oil prices. Also,the demand for Guar Gum remained low dueto sluggish demand from themajor consumingsector which is US shale. The performancewas further affected as domestic prices of ourfeedstockviz.molassesandalcohol,werehighon account of poor availability of ethanol anddiversionofethanoltowardstheimplementationofEthanolBlendingwithPetrol (EBP)Programof Government of India at an unrealistic andexorbitantpriceresulting inasharp increase inthepricesofethanollocally.

(b) Steps taken or proposed to be taken for improvement

Under the current challenging businessenvironment,theCompanyismakingallpossibleeffortstoincreasetheturnover,managingcosts,improveproductivity,planningandmanagement.Also to diversify the business, exploring newmarketsandlaunchingnewproducts.Inthisline,theCompanyhadlauncheditspremiumproductsunder thebrandnameof “V2OVodka” in threeflavors viz. Orange, Green Apple and Smoothin Vodka category and Soulmate in Whiskycategory.TheCompanyhasalsoextended thelaunch of Beach House Premium XXX Rum.Beach House Premium Rum for supply toIndian Defense forces through CSD has beenapproved.

(c) Expected increase in productivity and profits in measurable terms

TheCompanyexpects increase in the turnoverinthequantum.

Theabovemaybetreatedasanabstractandmemorandumsetting out the terms of contract of appointment ofShriM.K.RaounderSection190oftheAct.

Accordingly,approvalof theMembers issoughtbywayofspecialresolutionforpaymentofremunerationtoShriM.K.Rao for remainingperiodof2 yearsofhis currenttenurew.e.f.1stApril,2016.

Copyofrelevantdocumentsincludingthememorandum(s)setting out the terms of remuneration, are open forinspectionbytheMembersattheRegisteredOfficeoftheCompanybetween11.00a.m.to1.00p.m.onallworkingdaysuptothedateofAnnualGeneralMeetingandshallalsobeavailableattheMeeting.

Except Shri M. K. Rao, none of the Directors / KeyManagerialPersonneloftheCompanyortheirrespectiverelatives are in any way, concerned or interested,financiallyorotherwise,intheSpecialResolutionatItemNo.6oftheNotice.

TheBoardofDirectorsrecommendstheresolutionatitemNo.6ofthisNoticeforapprovaloftheMembersbywayofa Special Resolution.

ITEM NO. 7ThegrowthplansoftheCompanyenvisagepromotionofGreentechnologybasedChemicalsandexpansioninotherareasofoperation.Theseprojectswillnecessitateexternalinfusionoffundsatdifferentpointsoftimeinthefuture.

WithaviewtoraiselongtermfinanceaswellasmeetingCompany’s fund requirements for expansion, capitalexpenditure, general corporate purposes and for otherexpendituresaspermittedundertheprevailingguidelinesin this regard, the Company proposes to raise fundsthrough issue of Equity Shares and/or instruments orsecuritiesconvertibleintoequitysharesoftheCompanysuch as Global Depository Receipts and/or AmericanDepositoryReceiptsand/orconvertiblepreferencesharesand/or convertible debentures or bonds (compulsorilyand/or optionally, fully and / or partly), and/or non-convertible debentures with warrants and/or securitieswithorwithoutdetachable/non-detachablewarrantsand/orwarrantswitharightexercisablebythewarrant-holdertosubscribe forequitysharesand /orForeignCurrencyConvertibleBonds(FCCBs)convertibleintoequitysharesat the option of the Company or the holder(s) thereof,up toanaggregateprincipalamountof` 250.00Crores(Rupees TwoHundred FiftyCrores) or its equivalent inany other currency on the terms and conditions as stated inResolutionno.7ofthisNotice.

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 uponexerciseoftheoptionofconversionoftheFCCBswillbeinaccordancewiththeprescribedguidelinesunderForeignCurrencyConvertibleBondsandOrdinaryShares(ThroughDepositoryReceiptMechanism)Scheme,1993asamendedasalsoinaccordancewiththetermsofoffering.

TheseFCCBsmaybelistedonStockExchange(s),abroad,asmaybedeemedfit by theBoard.Theequity sharesissuedandallotteduponexerciseoftheoptionavailableontheFCCBsshallbelistedontheStockExchangesinIndiawheretheCompany’ssecuritiesarelisted.

This resolution is proposed as an enabling resolutionto authorize the Board of Directors to raise long term



fundsaswellasmeetingCompany’s fund requirementsfor expansion, capital expenditure, general corporatepurposes and for other expenditures as theBoardmaydecideandaspermittedundertheprevailingguidelinesinthisregard.ThisresolutionalsogivesadequateflexibilityinrespectofworkingoutthemodalitiesofissueasalsotoissueFCCBsinsuchtranches,atsuchtimesastheBoardmayinitsabsolutediscretiondeemfit.

Pursuant to the provisions of Sections 41, 42, 62 and71 of the Companies Act, 2013 read with SEBI ListingRegulations, a Company proposing to issue Securitiesto persons other than the existing shareholders or thepublic,isrequiredtoobtaintheapprovalofthemembersbywayofaSpecialResolution.Since theSecuritiesasmentionedinresolutionno.7ofthisnotice,maybeofferedtothepersonsotherthantheexistingshareholders, it isproposedtoobtaintheapprovalofShareholdersbywayofaspecialresolution.

NoneoftheDirectors/KeyManagerialPersonneloftheCompany or their respective relatives are in any way,

concerned or interested, financially or otherwise, in theSpecialResolutionatItemNo.7oftheNotice.

TheBoardofDirectorsrecommendstheresolutionatitemNo.7ofthisNoticeforapprovaloftheMembersbywayofa Special Resolution.

By order of the BoardFor India Glycols Limited

Place : Noida Ankur JainDate : 5thAugust,2016 Company Secretary

RegisteredOffice:A-1,IndustrialArea,BazpurRoad,Kashipur-244713,DistrictUdhamSinghNagar,UttarakhandCIN:L24111UR1983PLC009097TelephoneNo.:+91-5947-269000,269500Fax:+91-5947-275315,269535Website:www.indiaglycols.come-mail:[email protected]



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To The Members

Board’sReport

Your Directors are pleased to present the 32nd Annual ReportonthebusinessandoperationsoftheCompany,together with the Audited Financial Statements of yourCompanyforthefinancialyearended31stMarch,2016.

FINANCIAL RESULTS (`inCrores)(exceptearningpershare)

Year ended 31.03.2016

Year ended 31.03.2015

Sales and other Income 2329 2601EarningsbeforeInterest,Taxes,DepreciationandAmortization

194 180

Profit/(Loss) before Depreciationand Amortization, ExceptionalItemandTax

61 23

ExceptionalItem(Net) 60 58Depreciation 53 81Profit/(Loss)beforeTax (52) (116)

ProvisionforTax (18) (55)NetProfit/(Loss) (34) (61)EarningPerShare(In`) (11.03) (19.81)

DIVIDENDIn view of the financial performance of your Company,yourDirectors have not recommended any dividend forthefinancialyear2015-16.

PERFORMANCE REVIEWDuring the FY 2015-16 on a standalone basis, yourCompanyrecordedatotalrevenueof`2,329Croresascompared to `2,601Crores inFY2014-15,adecreaseofabout10.46%.Thelossafterdepreciation,exceptionalitemsandtaxforFY2015-16was 34Croresascomparedto loss of ` 61Crores incurred during the FY 2014-15.The performance of the Company remained weak onaccountoflowerMonoethyleneGlycol(MEG)pricesdueto reduced crude oil prices. Also, the demand forGuarGumremainedlowduetosluggishdemandfromthemajorconsuming sector which is US shale.The performancewasfurtheraffectedasdomesticpricesofourfeedstockviz.molassesandalcohol,werehighonaccountofpooravailability of ethanol and diversion of ethanol towardstheimplementationofEthanolBlendingwithPetrol(EBP)Program of Government of India at an unrealistic andexorbitantpriceresultinginasharpincreaseinthepricesofethanollocally.During the year under review, no amount has beentransferredtoreserves.Further, during the first quarter ended 30th June, 2016,yourCompanyrecordedtotalrevenueof 608Croresandearnedaprofitaftertax(PAT)of` 7.80Crores.

AWARDS AND RECOGNITIONSYourCompanyhasbeenawardedthegrandgoldawardfor sixth year in a row byMondeSelectionCommittee,Belgium,forattaininghighlevelofqualityforExtraNeutralAlcohol(ENA).

CHEMICALS The Company is the largest manufacturer of Bio-MonoEthylene Glycol (Bio-MEG) in the world made out ofrenewablefeedstocki.e.MolassesandEthanol.Bio-MEGhasanapplication,inter-alia,inmakingPETbottles,whichisusedforpackagingofbeverageproducts.SalesofGlycols[MonoethyleneGlycol(MEG),DiethyleneGlycol(DEG),TriethyleneGlycol(TEG)andHeavyGlycols]haveincreasedfrom90,140MTinFY2014-15to94,268MT in FY 2015-16. However, due to low internationalprices of the Glycols, the sales value decreased from`706Croresto`700Crores,respectively.SalesunderEthyleneOxideDerivatives(EOD)businessdecreasedto95,000MTinFY2015-16from99,034MTduring previous year and resultantly, the sales valuealso decreased from ` 1,109 Crores to ` 974 Crores,respectively.SaleswereadverselyaffectedduetosteepdropinrealizationsaswellasslowdowninkeyconsumingmarketslikeChina.During theyear,yourCompanyproduced96,245MTofGlycolscomparedto93,029MTlastyear.EthyleneOxideDerivatives (EODs) production has been 1,08,528 MTcomparedto1,36,837MTlastyear.

EXPORTSDuringtheyearunderreview,yourCompanyhasachievedtotalexportsalesvalueof`873Croresascomparedto`1030Croresduringlastyear.ThedeclineinexportscanbeattributedtodeclineinsalesofGlycolEther&Acetatesinviewofsteepdropinrealisationsandslowdowninkeymarkets like China. Your Company hopes to achievereasonablegrowthintheoverallexportsalesinthecurrentyear though the market conditions remain extremelychallenging.Companyhasbeengranted‘OneStarExportHouse’statusbyGovernmentofIndia.

ETHYL ALCOHOL (POTABLE) & EXTRA NEUTRAL ALCOHOLDuringtheyear,yourCompanyregisteredtotalsalesvalueof`1150Croresascomparedto`691CroreslastyearintheEthylAlcohol(Potable)division.Duringtheyear,thrustwasgivenontheexportofhighqualityExtraNeutralAlcohol(ENA)andtheCompanyhasgainedthepositionofpremiumqualityENAsuppliersintheinternationalmarkets.YourCompany has a tie-upwith Bacardi for bottling oftheir products at our Kashipur bottling unit andBacardihasalsostartedthebottlingofmorebrandsatourbottlingfacilityatKashipur.



YourCompanyishavinglicenseforoperationsinandsaleofCountry Liquor and IndianMadeForeign Liquor (IMFL)in theStatesofUttarPradeshandUttarakhand.Companyhadlauncheditspremiumproductsunderthebrandnameof“V2OVodka”inthreeflavorsviz.Orange,GreenAppleandSmoothinVodkacategoryandSoulmateinWhiskycategory.WehavealsoextendedthelaunchofBeachHousePremiumXXXRum.BeachHousePremiumRumforsupplytoIndianDefenseforcesthroughCSDhasbeenapproved.

ENNATURE BIO-PHARMA DIVISION (100% EXPORT ORIENTED UNDERTAKING)YourCompanyhasa100%ExportOrientedUnit(100%EOU)bythenameofEnnatureBio-pharmadivision.Theunit had established Supercritical Fluid Extraction- CO2 and solvent extraction facility at Dehradun. The unit isCurrentGoodManufacturingPractices(CGMP),ISO9001,ISO22000,HazardAnalysis andCriticalControlPoints(HACCP), Kosher and Halal certified. The R&D centerat Ennature Bio-Pharma plant at Dehradun is workingvigorously on the process of stabilizing and developingvariousPhytopharmaceuticalandNutraceuticalproductsforthedevelopedmarkets.TheCompanyhasbecomeaqualifiedsupplier tomanylarge conglomerates worldwide for natural colors,nutraceuticals, health supplements and plant basedActive Pharmaceuticals Ingredients (APIs). Companyhasestablished itsnameasaqualitymanufacturerandsupplierwith stringentQualityControl (QC) andQualityAssurance(QA)controlsinplace.During the year 2015-16, as a result of taking severalinitiatives for improving functioningof thedivision,salesvalueofEnnatureBio-Pharmadivisionincreasedto` 79Croresascomparedto`68Croresoflastyearregisteringagrowthofover16%.Bothdomestic&exportssaleshaveincreasedandexistingproductssaleshaveincreasedwithincreaseinthecustomerbaseandmoreusagefromtheoldcustomers.YourCompanyhasdevelopedprocessformanufacturingVinpocetinefromtabersonine.TheR&Dpilotsamplehasbeen approved by prospective buyers. The technologydemonstration for commercial production has beendone successfully.Process formanufacturingCurcumininvolvinggreensolventethanolhasbeendevelopedandtechnology transfer has been carried for commercialproduction.YourCompany isworking towardscreatingvalue for itsgenericproductsbybranding,repositioning&generatingtechnicalbackupwiththehelpofprofessionalinstitutes.

INDUSTRIAL GASESDuring the year under review, the Company produced21,235MT of Oxygen and 1,074MT of Nitrogen. BothOxygenandNitrogenwere sold in themarket andalsousedforinhouserequirement.Inaddition,Argonof3,100MTwasalsoproducedanditssaleswere3,096MT.

Industrial Gas Division also produced Beverage andIndustrial Grade Liquid Carbon Di-oxide (LCO2) atKashipur.Duringtheyear,yourCompanyhasproduced27,095MTofLCO2anditssalewas27,474MT.Your Company also produced ETO (Ethylene Oxide&CarbonDioxideGasMixtures) under the trade nameIGL-STERI GAS at its Kashipur Plant. It is suitable forsterilization of Disposable Surgical & Medical Devices,spicesandpackingsubstanceslikerubberplasticetc.TheCompanyhas inhouse facility forproductionofEOandLCO2whicharealsoused inproductionofETOandassuchitistheonlyplantinIndiatohavesuchmanufacturingfacility,whichgivesusadistinctedgeoverothersuppliersinthemarket.Duringtheyearunderreview,theCompanyhassold928MTofSteriGasascomparedto913MTinthelastyear.Further, the Industrial Gases segment registered totalsalesofallgasesof` 38Croreswhichwassameduringthelastyear.

BIOMASSIndia’s first multi-feedstock continuous flow plant isunder trialsatCompany’sKashipursitewithcapacityof10 tonperdaybiomassprocessing.Thisplant isbasedon the technology developed by the DBT-ICT Centrefor Energy Biosciences at the Institute of ChemicalTechnology,MumbaiwiththesupportoftheDepartmentofBiotechnology,MinistryofScienceandTechnology.This Technology is a novel indigenous technologydesigned for handling all types of agricultural residueslikeBagasse,RiceStraw,WheatStraw,Bamboo,CottonStalk,CornStover,Woodchipsetc.withoptimumproductyields. The technology and the plant is projected to becapableofconvertinganybiomassfeedstocktoalcoholinlessthan24hours.

FUTURE OUTLOOK OR EXPANSION / MODERNISA-TION / DIVERSIFICATION PLANSYour Company is continuously looking for growthopportunitiesandtoreduceitscostofproduction.Further, theCompany, as part of long term strategy, isshifting fromcommodity tonichemarketsandspecialityproductsandwoulddivertEthyleneOxide(EO)moleculeforBio-MEGandEODerivative/Specialityproductswhichwill give us better returns. The Company is promotingGlycols as Bio/ Green MEG to potential customersinterestedinmeetingtheirobjectiveofusingenvironmentfriendly chemicals made from natural renewableresources.TheCompanyhasconvertedthisconceptintoagoodbusinessopportunitywhichwillgraduallyenablefull capacity utilizationwith better realization.Moreover,the niche markets of Bio-MEG in the packaged water,automobile, personal care and cosmetics are going togivetheCompanybettermargins.Further, as a part of expansion of Ethoxylates, theCompany has initiated promotion of Bio-Ethoxylates in



theinternationalmarketwhichisgainingacceptabilityandcanbegoodopportunityforbetterrealizationinthenichemarketsegments.Also,effortshavebeenmadetowidentheproductportfolio (NaturalHealthProducts) forgreensupercriticalfluidextractiontechnologywithvalueadditionandbusinessgrowth.The enrichment of Marigold Lutein ester extracted bysolvent for preparation of lutein was developed. Newproprietary formula of Charatin-KLA from SCF-CO2 extractedMomordicaCharantiaand itspolypeptidewasdeveloped. The efficacy of same is being evaluated tocontainsugarlevelindiabeticpatients.TheCompanyhasfurtherdevelopedaprocessformanufacturingCurcumininvolvinggreensolventethanolandalsotheprocessformanufacturingVinpocetinefromTabersonine.

FINANCE Duringtheyearunderreview,yourCompanyhasraisedterm loans of ` 29Crores. Further, yourCompany hasraisedUSD 114million (` 726.42Crores) through longtermexport advances for a periodof 10 years in termsof Reserve Bank of India (RBI) guidelines. Out of theproceeds, the Company has pre-paid the term loan of` 553 Crores and ` 170 Crores has been deployedtowardsreductioninworkingcapitallimits.TheCompanyhasalsopaidtermloansof`91Croresduringtheyear.

TheCompanyhasbeenregularinmeetingitsobligationstowards payment of principal/interest to FinancialInstitutions/Banks.DetailsoftheLoans,GuaranteesandInvestmentsetc.coveredundertheprovisionsofSection186oftheCompaniesAct,2013areprovidedinthenotestothestandalonefinancialstatementswhichformspartoftheAnnualReport.

TheCompanyhaddiscontinueditsfixeddepositsschemeintheFY2009-10andhasnotacceptedanyfreshdepositscovered under Chapter V of the Companies Act, 2013during the year. There are no overdue deposits exceptunclaimed deposits amounting to `1.32lacs.Duringtheyear,unclaimeddepositof`1.27lacswastransferredtoInvestorEducationandProtectionFund(IEPF).

INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACYTheCompany periodically discusses and reviews at itsAudit Committee andwith its auditors the effectivenessof the internal financial control measures implementedbytheCompanyincludingwithreferencetotheFinancialStatementsoftheCompany.The Company has a proper and adequate system ofinternalfinancialcontrolswhichincludesthepoliciesandproceduresforensuringtheorderlyandefficientconductof its business, including adherence to Company’spolicies, the safeguarding of its assets, the preventionand detection of frauds and errors, the accuracy andcompletenessof theaccounting records,and the timelypreparationofreliablefinancialinformation.

LISTING OF SECURITIESThe shares of the Company are listed on BSE Limited(BSE)andtheNationalStockExchangeofIndiaLimited(NSE).Theannual listing fees for theyear2016-17hasbeenpaidinadvancetotheStockExchanges.PursuanttotheSEBIListingRegulations,theCompanyhasenteredintoListingAgreementinthenewlyprescribedformatwiththeStockExchanges.

SUBSIDIARY COMPANIES AND JOINT VENTURE AND CONSOLIDATED FINANCIAL STATEMENTS As on 31st March, 2015, the Company had Five (5)subsidiariesandOne(1)jointventurecompany.Further,duringtheyearunderreview,One(1)subsidiarynamely,IGLInfrastructurePrivateLimitedceasedtobesubsidiaryw.e.f. 14th September, 2015. A brief of each of them isgivenbelow:

Shakumbari Sugar and Allied Industries LimitedThe Company operates a sugar manufacturing plantin the state of Uttar Pradesh through its subsidiaryCompany Shakumbari Sugar and Allied Industries Ltd.(SSAIL)witha crushing capacity of 7,500 tons crushedperday(TCD)alongwithamoderndistilleryof65KLperday (KLPD) producing high quality rectified spirit andan internalbagassefiredco-generationplantof11MWcatering to the captive power needs of the sugar anddistilleryunits.ThenetworthofSSAILhasbeencompletelyerodeddueto accumulated losses and therefore, SSAIL has beendeclaredaSickIndustrialCompanyundertheprovisionsofSection3(1)(o)oftheSickIndustrialCompanies(SpecialProvisions) Act, 1985 (SICA) after obtaining necessaryconsentsfromitssecuredlendersincludingCentralBankof India, IDBIBank Ltd., AxisBank etc. IDBIBank Ltd.beingtheOperatingAgencyhaspreparedandsubmittedthe draft revival scheme for SSAIL and the final orderof the BIFR on revival of SSAIL is awaited. During theyear,nooperationsatthesugarmanufacturingplantwerecarriedoutduetomountingdebtburdenoftheCompany,lack of adequateworking capital and the uneconomicalsugarscenariointheStateofUttarPradesh.Duringtheyearended31stMarch,2016,SSAILhassufferedalossof` 10.24Crores.

IGL Finance LimitedIGL Finance Ltd. (IGLFL) is a 100% subsidiary of theCompany. IGLFL had invested funds in short termcommodity financing contracts of the National SpotExchangeLtd.(NSEL).EventhoughNSELhasdefaultedinsettlingthecontractsonduedates,IGLFLisconfidentofrecoveryof itsduesfromNSELoveraperiodof timeinviewoftheactiontakenbytheGovernmentandotherinvestigatingagencies.IGLFLhassofarrecovered 1031lacsfromNSEL.Duringtheyearended31stMarch,2016,IGLFLhassufferedalossof` 1.14lacs.



IGL Chem International Pte. Ltd.IGL Chem International Pte. Ltd. is a 100% subsidiary oftheCompanyinSingaporetoaugmentitsactivitiesinSouthEastern region and help the marketing of products fromChemicalPlant,NaturalGumsPlantandSupercriticalFluidExtractionfacility to largebuyers inUS,EuropeandSouthEastAsia.Duringtheyearended31stMarch,2016,IGLChemInternationalPte.Ltd.hassufferedalossof`11.50lacs.

IGL Chem International USA LLCYour Company has also set up a 100% subsidiarycompanyinUSAnamedasIGLChemInternationalUSALLCwiththemainobjectiveofmarketingoftheCompany’sproductsandrelatedactivitiesintheAmericanandLatinAmerican regions. During the year ended 31st March,2016,IGLChemInternationalPte.Ltd.hassufferedalossof` 232.05lacs.

IGL Infrastructure Private LimitedIGL Infrastructure Pvt. Ltd. was incorporated on 13th October,2014,asa100%subsidiarycompany,withtheobjectivesofacquiringland,estates,buildings,tenementsandotherpropertyofeverydescriptionwhetherfreeholdorleaseholdorothertenurebypurchase,lease,exchange,hire or otherwise. During the year under review, theCompanysoldwholeofitsinvestmentinIGLInfrastructurePvt.Ltd.atavaluedeterminedbyanindependentvaluerinordertobringdownthedebtandimprovetheliquidityposition of the Company. Thereafter, IGL InfrastructurePvt.Ltd.ceasedtobeasubsidiaryofIndiaGlycolsLimitedw.e.f.14thSeptember,2015.

Kashipur Infrastructure and Freight Terminal Private LimitedYour Company has a Joint Venture with ApolloLogisolutions Limited (“ALS”) under the name KashipurInfrastructureandFreightTerminalPrivateLimited(KIFTL)throughwhichaPrivateFreightTerminal(PFT)andInlandContainer Depot (ICD) have been set up for providingrailway based logistic services and other facilities atBazpurRoad,Kashipur,Uttarakhand,asprovidedunderextantguidelinesoftheIndianRailways.ALS is engaged in the business of offering completeandcomprehensiveservicesrelating tocontainer freightstation, transportation of containers, cargo handlingandhas therequisite technicalexpertise tooperateandmanage inland container depot. The Company holds48.90%ofthesharecapitalofKIFTLwhile51.10%ofthesharecapitalisheldbyALS.KIFTLwilldevelop,manageandoperatePrivateFreightTerminal (PFT) and Inland Container Depot (ICD) atKashipur, Uttarakhand. The facility is expected to beoperationalbyQ2ofthisfinancialyear.The facility shall provide multi-modal logistics solutionstoourCompanyandexternalcustomersandenhanceitsservicedeliverycapacity.Withthecommissioningofthisfacility,logisticsmovementforbothinboundandoutbound

cargo would become more dependable, reliable andeconomical,wouldalsoensureon-timedeliveryofgoodsandenablebetterinventorymanagement.The consolidated financial statements of the Companyanditssubsidiaries,jointventure,preparedinaccordancewith theapplicableaccountingstandards, issuedby theInstituteofCharteredAccountantsof India (ICAI), formspart of this Annual Report. Pursuant to the provisionsof Section 136 of the Act, financial statements of thesubsidiarycompaniesarenot required tobesent to themembersof theCompany.TheCompanywillprovideacopyofseparateannualaccountsinrespectofeachofitssubsidiary/associatetoanymemberoftheCompanyifsodesiredandsaidannualaccountswillalsobekeptopenforinspectionattheregisteredofficeoftheCompany.Further,theauditedannualaccountof thesubsidiarycompaniesare also available on thewebside of theCompany viz.www.indiaglycols.com.A separate statement containing salient features of thefinancial statements of subsidiaries Joint venture underfirst proviso to sub-section (3) of section 129 in FormAOC-1formspartofthefinancialstatements.

BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)During the year under review, as advised by the StateBank of India (SBI), a lender, your Board of DirectorsapprovedtheappointmentofShriAshwiniKumarSharma(DIN:00157371)ontheBoardoftheCompanyasNomineeDirectorofSBIw.e.f.1stSeptember,2015foraperiodof2yearstill31stAugust,2017.Further, Shri Ramesh Chandra Misra, veteran Boardmember and Chairman of the Audit Committee ofthe Board of Directors left for his heavenly abode on28thApril,2016.HewasthememberoftheBoardsince24th November, 1987. The Board expresses its sinceregratitude to Late Shri Ramesh Chandra Misra for hisvaluablecontributiontothedeliberationsintheBoardandCommitteemeetings.On the recommendation of the Nomination andRemuneration Committee, the Board of Directors inits meeting held on 11th February, 2016, approved the

re-appointmentofShriU.S.Bhartia (DIN:00063091)asChairmanandManagingDirectorof theCompany forafurtherperiodoffive(5)yearsw.e.f1stApril,2016upto31st March,2021alongwithproposed remuneration,subjectto the approval of theShareholders of theCompany inensuingAnnualGeneralMeeting.ShriM.K.Rao (DIN: 02168280), ExecutiveDirector of theCompany is retiring by rotation at the forthcoming AnnualGeneral Meeting and being eligible, offers himself for re-appointment.YourDirectorsrecommendthere-appointmentofShriM.K.Rao,theretiringDirector,foryourapproval.Brief resume of the Directors seeking appointment andre-appointment along with their other details as stipulated under Regulation 36 of SEBI (Listing Obligations and



DisclosureRequirements)Regulation,2015,areprovidedintheNoticeforconveningAnnualGeneralMeetingandCorporateGovernanceReport.AlltheIndependentDirectorshavefurnisheddeclarationsthattheyfulfillthecriteriaofIndependenceasprescribedunderSection149(6)oftheAct.DuringtheFinancialYear2015-16,Four(4)BoardMeetingswere held. The details of the Board Meetings and theattendance of the Directors thereat are provided in theCorporateGovernanceReportandformspartofthisreport.Further, during the year under review, Shri Lalit KumarSharmaresignedasCompanySecretary/KMPwitheffectfrom31stMay,2015andwassupersededbyShriKapilBhallawitheffectfrom24thJune,2015whoresignedwitheffect from 15th April, 2016. Thereafter, Shri Ankur Jainjoined as Company Secretary and Compliance Officer/KMPwitheffectfrom1stJuly,2016.

BOARD EVALUATIONPursuant to theapplicableprovisionsof theCompaniesAct, 2013 and SEBI (Listing Obligations & DisclosureRequirements)Regulations,2015,theBoardhascarriedouttheannualperformanceevaluationofitsownperformance,theDirectorsindividuallyaswellastheevaluationofBoardCommittees. The evaluation was carried out based onparameterssuchaslevelofengagementandcontribution,independenceofjudgement,safeguardingtheinterestoftheCompanyandallstakeholdersetc.

TheperformanceevaluationoftheIndependentDirectorswasdonebytheentireBoardexcludingtheDirectorsbeingevaluated.TheperformanceevaluationoftheChairman,BoardasawholeandtheNon-IndependentDirectorswascarried out by the IndependentDirectors. TheBoard ofDirectorsexpressedtheirsatisfactionwiththeevaluationprocess.NOMINATION AND REMUNERATION POLICYThe Nomination and Remuneration Policy containingguidingprinciplesforpaymentofremunerationtoDirectors,SeniorManagementandKeyManagerialPersonnelalongwithBoardevaluationcriteriaareprovidedintheCorporateGovernanceReportandformspartofthisReport.

SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013InaccordancewiththeprovisionsoftheSexualHarassmentof Women at Workplace (Prevention, Prohibition andRedressal) Act, 2013, theCompany has constituted anInternal Complaints Committee where any grievance ofsexual harassment at workplace can be reported. Nocomplaintpertaining tosexualharassmentatworkplacehasbeenreportedtotheCommitteeduringthefinancialyearended31stMarch,2016.TheCompanyhasalsoadoptedpolicyonpreventionofSexual Harassment at workplace. The objective of thepolicy is to provide itswomenemployees, aworkplace,

free from harassment/discrimination and that everyemployee is treated with dignity and respect. The saidpolicy is available on the website of the Company i.e.www.indiaglycols.comunderlink:http://www.indiaglycols.com/investors/downloads/policy-for-prevention-and-redressal-of-sexual-harrasment-of-women-at-workplace.pdf.

VIGIL MECHANISM / WHISTLE BLOWER POLICYIn termsofprovisionsofSection177of theCompaniesAct,2013readwithRules thereunderandSEBI (ListingObligations and Disclosure Requirements) Regulations,2015(erstwhileListingAgreementwithStockExchanges),theCompanyhasestablishedaVigilMechanism/WhistleBlower Policy to deal with the instances of fraud andmismanagement.ThedetailsoftheVigilMechanism/WhistleBlowerPolicyare provided in the Corporate Governance Report andalsohostedonthewebsiteoftheCompany(http://www.indiaglycols.com/investors/downloads/vigil-mechanism-policy.pdf).

DIRECTORS’ RESPONSIBILITY STATEMENTIntermsofprovisionsofSection134(5)oftheCompaniesAct,2013,yourDirectorsconfirmthat:

(a) inthepreparationoftheannualaccountsfortheyearended 31st March, 2016, the applicable accountingstandards had been followed along with properexplanationrelatingtomaterialdepartures;

(b) they have selected such accounting policies andapplied themconsistentlyandmade judgmentsandestimates thatarereasonableandprudentsoas togiveatrueandfairviewofthestateofaffairsoftheCompanyasat31stMarch,2016and theprofitandlossofthecompanyforthatperiod;

(c) they have taken proper and sufficient care for themaintenance of adequate accounting records inaccordance with the provisions of the CompaniesAct,2013forsafeguardingtheassetsoftheCompanyand for preventing and detecting fraud and otherirregularities;

(d) theyhavepreparedtheannualaccountsonagoingconcernbasis;

(e) theyhavelaiddowntheinternalfinancialcontrolstobe followedby theCompanyand thatsuch internalfinancial controls are adequate andwere operatingeffectively;and

(f) they have devised proper systems to ensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemswereadequateandoperatingeffectively.

MANAGEMENT DISCUSSION AND ANALYSISTheManagementDiscussionandAnalysisReportasrequiredunderSEBI(ListingObligationsandDisclosureRequirements)



Regulations, 2015 (erstwhile ListingAgreementwithStockExchanges)formspartofthisReport.

CORPORATE GOVERNANCETheCorporateGovernanceReport, as stipulated underScheduleV(C)ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015(erstwhileClause49oftheListingAgreement),formspartofthisReport.The requisite certificate from the Statutory Auditors oftheCompany,M/sLodha&Co.,CharteredAccountants,confirming compliance with the conditions of corporategovernanceasstipulatedunder theaforesaidprovisionsisattachedtoCorporateGovernanceReport.

STATUTORY AUDITORS & AUDIT REPORT

Statutory AuditorsTheAuditors,M/s.Lodha&Co.,CharteredAccountants,retire at the ensuingAnnualGeneralMeeting and offerthemselves for re-appointment.TheBoard recommendsthe appointment of M/s Lodha & Co., as the StatutoryAuditorsfromtheconclusionoftheensuingAnnualGeneralMeeting till the conclusion of the next Annual GeneralMeeting.M/s.Lodha&Co.,CharteredAccountants,haveconfirmed that they are eligible under Section 139 andSection141oftheCompaniesAct,2013andRulesframedthereunderforappointmentasAuditorsoftheCompany.TheAuditorshavealsoconfirmed that theyholdavalidcertificateissuedbythePeerReviewBoardoftheInstituteofCharteredAccountantsofIndia(ICAI).

Auditor’s ReportTheAuditorsintheirAuditReportonthestandalonefinancialstatementshaveinvitedtheattentionoftheShareholderstowardsnon-provisioningagainst(i)diminutioninthevalueof investment in its Subsidiary Company, ShakumbariSugar and Allied Industries Limited (SSAIL) amountingto `54.28Crores,and(ii) InterCorporateDepositsandadvancesamountingto`103.69Crores.TheAuditors intheir Audit Report on the standalone and consolidated financialstatementshavealsoinvitedtheattentionoftheShareholders towards Corporate Guarantee extendedbytheCompanyamountingto`108.45Croresonbehalfof SSAIL against outstanding amount of FinancialInstitutions and Banks. The Company has alreadyprovideditsclarificationascontainedinnoteno.33(A)ofthe standalone financial statements i.e. considering theintrinsicvalueoftheinvesteeassets,longtermnatureofinvestmentandfilingofTEV(TechnicalEvaluationStudy)report,andrevivalschemebytheOperatingAgency(OA)i.e.IDBIBankLtd.soappointedasdirectedbytheHon’bleBoardforIndustrialandFinancialReconstruction(BIFR),noprovisionatthisstageisconsiderednecessarybythemanagementagainst investmentsmade inabovestatedsubsidiarynamelySSAIL.Also,ascontained innoteno33(A)ofthestandalonefinancialstatementreadwithnoteno. 34 of the consolidated financial statement, Central

BankofIndia(CBOI)videitsletterdated28thMay,2014had issued a notice under Section 13(2) of SARFAESIAct, 2002 to SSAIL and theCompany. The said noticewasrepliedbySSAILandtheCompanychallengingthelegality of issuance of such notices. CBOI, thereafter,on 11th September, 2014 had issued another noticeunder Section 13(4) of SARFAESI on SSAIL and theCompany,whichhasbeenchallengedatDRT,Lucknow.Asper the legalopinion, thenotice issuedby theCBOIisnot validsinceSSAIL is registeredwithBIFRassickindustrialCompany.Meanwhile,BIFRvideitsorderdated24th September, 2015 has rejected the appeal of CBOIforseekingrecoverycertificate.AgainstthesaidorderofBIFR,CBOIhasfiledanappealbeforeAppellateAuthorityforIndustrialandFinancialReconstruction(AAIFR)whichis pending. Accordingly, the Company is confident thatamount is considered good and fully recoverable andno provision there against & also against CorporateGuaranteeextendedbytheCompanyonbehalfofSSAILisconsiderednecessarybythemanagement.

The Auditors in their report on standalone financialstatements have also invited the attention of theShareholders towardsnon-provisioningbytheCompanyagainsttotalexposureamountingto`147.75Croresinits100%subsidiaryCompanyIGLFinanceLimited(IGLFL)and towards the non-provisioning of ` 144.44 Croresin its report on consolidated financial statements. TheCompanyhasalsoprovideditsclarificationascontainedinNoteno.33(B)ofthestandalonefinancialstatementsandNoteno.32oftheconsolidatedfinancialstatementsi.e. theCompanyhastotalexposureof`147.75Crores(includingInvestmentincapitalof 1.25Crores)inIGLFL.IGLFLinearlieryearhadinvestedfundsforshorttermincommodity financing contracts offered byNational SpotExchangeLtd.(NSEL).NSELhaddefaultedinsettlingthecontractsonduedates,forwhichIGLFLhasinitiatedlegaland other action and in turn IGLFL did not pay due amount totheCompany.Accordingly,consideringtheprudence,nointerestonaboveICDhasbeenaccruedfortheperiodfrom 1st September, 2013 onwards. Further consideringthe arrangement of merger of NSEL with FinancialTechnologies (India) Limited (FTIL) and other measurewhichhavesofarbeentakenforandpendingbeforetheGovernmentandotherauthorities,themanagementandIGLFLisconfidentforrecoveryofduesfromNSELoveraperiodoftime.Consideringabovenoprovisionhasbeenconsiderednecessaryatthisstageagainsttotalexposurein IGLFL of ` 147.75 Crores (including Investment incapitalof`1.25Crores)andthesameisconsideredgoodandfullyrecoverablebythemanagement.

Further, the Auditors in their report on standalonefinancialstatementshavealsoinvitedtheattentionoftheShareholdersregardinglettersreceivedbytheCompanydated30th October,2014and5th May,2015fromNationalStockExchangeofIndiaLtd.(NSE),whereintheCompanyhas been advised to reinstate its financial statement



w.r.t. qualification raised for the years FY 2012-13 bythestatutoryauditoroninvestmentsandloanstoSSAILand suitably rectify the qualification raised for the yearFY2013-14bythestatutoryauditorw.r.t.investmentandloantoIGLFLrespectively.Basedonthelegaladvice,theCompany hasmade submissions before the SEBI/NSEandprovidedclarificationon thesame(noteno33(C)).Thereafter,nofurthercommunicationhasbeenreceivedbytheCompanyinthematter.

TheAuditorsintheirreportontheconsolidatedfinancialstatementshaveinvitedtheattentionoftheShareholderstowards the non-provisioning of interest amounting to` 20.80 Crores (excluding penal interest, charges etc.amountunascertained)andpendingconfirmationofsecuredloans, relatedwithasubsidiarycompany i.e.SSAIL.Also,preparationoffinancialstatementsofSSAILongoingconcernbasis. TheCompanyhas also provided its clarification ascontainedinNoteno.47(b)(iii)oftheconsolidatedfinancialstatements i.e. Interest on borrowings (which has beencategorisedasNPA)fromBank`20.80Crore(includingprevious year` 9.78Crores) hasnot beenprovidedasrehabilitationschemewithOperatingAgency(OA)areinprocess.TheCompanyhasalsoprovideditsclarificationascontainedinNoteno.47(a)oftheconsolidatedfinancialstatements i.e. SSAIL had been incurring cash lossesdue towhich its networth hasbeen completely erodedand its current liabilities are far in excess of its currentassets.Accordingly,intheYear2012-13,SSAILhadfiledapplication with the Board for Industrial and FinancialReconstruction (BIFR). The BIFR vide its order dated4th April, 2013 has declared SSAIL as a sick industrialcompany in terms of Sec 3(1)(o) of Sick IndustrialCompanies(SpecialProvisions)Act,1985.Further,BIFRhas appointed IDBI as theOperatingAgency (OA)withdirections to prepare a revival scheme for SSAIL andalso SSAIL has filed draft rehabilitation scheme withBIFRintheyear2013-14.Further,SSAILislookingandevaluatingotherbusinessopportunities,considering thisand continuous support from the holding company, themanagement considers it appropriate to prepare these financial statements of SSAIL on Going Concern basisdespitethenegativenetworthonthebalancesheetdate.

TheAuditorsintheirreportontheconsolidatedfinancialstatements have further invited the attention of theShareholders towards nonprovision against impairmentloss on the fixed assets of the subsidiary company i.e.SSAIL. TheCompany has also provided its clarificationas contained inNoteno. 44 i.e. in accordancewith theAccountingStandard (AS-28)on “ImpairmentofAssets”issuedbytheInstituteofCharteredAccountantsofIndia,in view of the management with respect to SSAIL, noimpairment loss on its Fixed Assets (including CapitalWork in Progress and Capital Advance) is considerednecessaryatthisstage,asitsexpectedrecoverablevalueismorethanitscarryingvalue.

SECRETARIAL AUDITOR & SECRETARIAL AUDIT REPORTThe Board appointed Ms. Sushma Chhabra, PracticingCompanySecretary(RegistrationNo.15832)asSecretarialAuditorfortheFinancialYear2015-16intermsofprovisionsofSection204oftheCompaniesAct,2013.TheSecretarialAudit Report for the financial year ended 31st March,2016wasconsideredbytheBoardinitsmeetingheldon26thMay,2016and isenclosedat “Annexure A” to this report.TheSecretarialAuditReportdoesnotcontainanyqualification, reservation or adverse remarkwhich needsanyexplanationorcommentoftheBoard.

COST AUDITORSCompany has appointed M/s R.J. Goel & Co., CostAccountants (FRN 000026) as Cost Auditors of theCompanyforthefinancialyear2016-17underSection148oftheCompaniesAct,2013readwiththeCompanies(CostRecordsandAudit)Rules,2014includingamendments,ifany.CostAuditorshaveconfirmed that theyareeligibleunderSection141(3)oftheCompaniesAct,2013forre-appointment.TheCostAuditors’Reportfortheyear2014-15wasfiledwithCentralGovernmentwithintheprescribedtime.

RELATED PARTY TRANSACTIONSDuring the FY 2015-16, Related Party transactions asdefinedunderSection188oftheActreadwithrulesmadethereunderandtheSEBIlistingRegulations,wereatarm’slengthandinordinarycourseofbusiness.YourCompanyhasinplaceaRelatedPartyTransactionsPolicy.During the year under review, your Company did notenter intoanyRelatedPartyTransactionwhichmaybeconsidered material in terms of Section 188 of the Actread with rules made thereunder and thus disclosure in FormAOC-2isnotrequiredtobemadebytheCompany.The disclosures pertaining to related party transactions incompliancewith theapplicableAccountingStandardshavebeengiveninNoteno.45ofthestandalonefinancialstatementsformingpartoftheAnnualReport.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGOYour Company is working actively on various projectsefficiently, approaching and targeting towards CleanDevelopmentMechanism(CDM)andreductioninGreenHouseGases(GHG)emissions.The Company has installed unique technology forconvertingdistilleryspentwashintofuelatboththeplantsviz.KashipurandGorakhpur.Throughthistechnology,thespentwashisconcentratedthroughfiveeffectevaporator.Theconcentrateisutilizedasfueltosubstitutecoal inaspecifically designed boiler. The high pressure steamso generated is passed through the turbine for powergenerationandlowpressuresteamafterturbineisutilized



in the plant for operation.Due to this yourCompany issaving fossil fuel in terms of coal and substituting theessentialpowergenerationthroughDGsets.TheBiomassbasedCogenerationProjectactivitytakenupbytheCompanyatitsGorakhpur,U.P.plantissuccessfullyregisteredunderCleanDevelopmentMechanism(CDM)project by United Nations Framework Convention onClimate Change (UNFCCC) for ten year fixed creditingperiod 16th December, 2010 to 15th December, 2020.Under the Clean Development Mechanism, emission-reduction (or emission removal) projects in developingcountriescanearncertifiedemissionreductioncredits.Your Company has received certification of EnergyManagementSystem(ISO50001:2011)underintegratedmanagementsystem.The information in accordance with the provisions ofSection134(3)(m)oftheCompaniesAct,2013readwiththeRule8of theCompanies (Accounts)Rules,2014 isgivenat“Annexure B”tothisreport.

CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility (CSR) is a way ofconducting business by which corporate entities visiblycontribute to thesocialgood.TheessenceofCSRis tointegrateeconomic,environmentalandsocialobjectiveswith the Company’s operations and growth. CSR isthe process bywhich an organization thinks about andevolvesitsrelationshipswithsocietyforthecommongoodanddemonstrates itscommitmentbygivingback to thesocietyfortheresourcesitusedtoflourishbyadoptionofappropriatebusinessprocessesandstrategies.

As the Company has incurred losses during the last 3financialyears,accordingly,intermsoftheprovisionsofSection 135 of the Act, theCompanywas not requiredto spendanyamount towardsCSRactivitiesduring thefinancialyear2015-16.However,keepinginviewitssocialresponsibilitycommitments,theCompanyhasvoluntarilycontributedtotheCSRactivitiesduringthefinancialyearended31stMarch,2016amountingto`5.57lacs.

InaccordancewiththeprovisionsofSection135oftheActreadwiththeCompanies(CorporateSocialResponsibilityPolicy)Rules,2014,theannualreportonCorporateSocialResponsibilityactivities isenclosedat“Annexure C” to thisReport.

RISK MANAGEMENT POLICYThe Company has constituted a Risk ManagementCommitteetomonitortheRiskManagementPlanandtomitigatetherisksattachedtothebusinessoftheCompany.TheRiskManagementCommittee consists ofDirectorsandtheseniormanagementpersonnelof theCompany,detailswhereofareprovidedintheCorporateGovernanceReportandformspartofthisReport.

YourCompany’sobjectiveofriskmanagementistohaveameaningfulidentification,measurement,prioritizationof

risksorexposurestopotentiallossesonacontinualbasisthroughactiveparticipationofallmembersoftheCompanyandaccordinglyestablishcontrolsandprocedurestobuilda visible & structured enterprise-wide riskmanagementframework;reducetherisklevelsandmitigatetheireffectsinthelikelihoodofariskeventwithanaimtoprotectourcompany from harm; and have a contingency plan tomanageriskshavinghighprobabilityandhighimpact.

Riskmanagementframeworkiscreatedtoensurethatriskmanagement principles are implemented and integrated all over the organization and that information retrievedfromtheriskmanagementprocessarecorrectlyreported.This frameworkprovidesastable foundation for theriskmanagementwork,orienttheorganizationalarrangementsproperlyinordertohaveaclearriskstrategyacrosstheorganization & share information, experiences amongstdifferentsitesoftheCompany.

Considering the importance of keeping the riskmanagementprocessdynamic,aquarterlyreviewoftheriskswillbecarriedoutacrosssitesanddepartmentsfornecessary key risks and risk management strategies are to be communicated to the Board of Directors for theirassessmentforminimizationofeffectsofrisk.

EXTRACT OF ANNUAL RETURNThe extract of the Annual Return in form MGT-9 isenclosed at “Annexure D”tothisReport.

COURT/TRIBUNAL ORDERSDuringtheperiodunderreview,therewerenosignificantmaterial orders passed by the regulators or courts ortribunals impacting the going concern status of theCompanyanditsfutureoperations.

PARTICULARS OF EMPLOYEESThe required information as per Section 197 of theCompaniesAct,2013readwithRule5oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isgivenat“Annexure E”tothisReport.

ACKNOWLEDGEMENTYourDirectorswishtoplaceonrecordtheirappreciationto employees at all levels for their dedication andcommitment.Your Directors would also like to expresstheir sincere appreciation for the continued supportand co-operation by theCentralGovernment, theStateGovernments of Uttarakhand and Uttar Pradesh, othergovernmental authorities, Banks, vendors and otherbusinessassociatesand look forward to theircontinuedsupportinthefuture.

For and on behalf of the Board

Place :Noida U.S. BhartiaDated:5thAugust,2016 Chairman and Managing Director

DIN:00063091



Annexure ASECRETARIAL AUDIT REPORT

FORTHEFINANCIALYEARENDED 31STMARCH,2016

To,TheMembers,India Glycols Limited

CIN: L24111UR1983PLC009097Wehaveconductedthesecretarialauditofthecomplianceof applicable statutory provisions and the adherenceto good corporate practices by India Glycols Limited(hereinaftercalled ‘thecompany’).SecretarialAuditwasconducted in a manner that provided us a reasonablebasis for evaluating the corporate conducts/statutorycompliancesandexpressingouropinionthereon.Based on our verification of the company’s books,papers, minute books, forms and returns filed andother recordsmaintained by the company and also theinformationprovidedbytheCompany,itsofficers,agentsand authorized representatives during the conduct ofsecretarialaudit,weherebyreportthatinouropinion,thecompanyhas,duringtheauditperiodcoveringthefinancialyearended31stMarch,2016,compliedwiththestatutoryprovisions listed hereunder and also that the CompanyhasproperBoard-processesandcompliancemechanisminplace to theextent, in themannerandsubject to thereportingmadehereinafter:We have examined the books, papers, minute books,formsandreturnsfiledandotherrecordsmaintainedbyIndia Glycols Limited for the financial year ended 31st March,2016accordingtotheprovisionsof:(i) TheCompanies Act, 2013 (the Act) and theRules

madethereunder;(ii) The Securities Contracts (Regulation) Act, 1956

(‘SCRA’)andtherulesmadethereunder;(iii) TheDepositoriesAct,1996andtheRegulationsand

Bye-lawsframedthereunder;(iv) Foreign Exchange Management Act, 1999 and

the rules and regulations made thereunder to the extentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowingsarenotapplicable;

(v) ThefollowingRegulationsandGuidelinesprescribedunder the Securities and Exchange Board of IndiaAct,1992:

(a) The Securities and Exchange Board of India(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

(b) The Securities and Exchange Board of India(Prohibition of Insider Trading) Regulations,1992 (upto14thMay,2015)andSecuritiesandExchangeBoardof India (Prohibitionof Insider

Trading)Regulations, 2015 (effective15thMay,2015);

(c) The Securities and Exchange Board of India(IssueofCapitalandDisclosureRequirements)Regulations, 2009 – Not applicable as theCompanyhasnotissuedanysharesduringtheyearunderreview;

(d) The Securities and Exchange Board of India(EmployeeStockOptionSchemeandEmployeeStock Purchase Scheme) Guidelines, 1999/SecuritiesandExchangeBoardofIndia(ShareBased Employee Benefits) Regulations, 2014(effective 28th October, 2014) – Not applicableas the Company has not issued any shares/options to directors/ employees under the saidguidelines/ regulations during the year underreview;

(e) The Securities and Exchange Board of India(IssueandListingofDebtSecurities)Regulations,2008–NotapplicableastheCompanyhasnotissued any debt securities which were listedduringtheyearunderreview;

(f) The Securities and Exchange Board of India(Registrars to an Issue and Share TransferAgents) Regulations, 1993 regarding theCompanies Act and dealing with client – NotapplicableastheCompanyisnotregisteredasRegistrar to Issue and Share Transfer Agentduringtheyearunderreview;

(g) The Securities and Exchange Board of India(DelistingofEquityShares)Regulations,2009–NotapplicableastheCompanyhasnotdelisted/proposetodelistitsequitysharesfromanyStockExchangeduringtheyearunderreview;and

(h) The Securities and Exchange Board of India(BuybackofSecurities)Regulations,1998–notapplicableastheCompanyhasboughtbackorproposetobuy-backanyofitssecuritiesduringtheyearunderreview.

(vi) The management has confirmed that other lawsapplicabletotheCompanyarebeingcompliedwith.

Wehavealsoexaminedcompliancewith theapplicableclausesofthefollowing:(i) Secretarial Standards with respect to Meetings of

Board of Directors (SS-1) and General Meetings(SS-2)issuedbyTheInstituteofCompanySecretariesofIndiaandmadeeffective1stJuly,2015;and

(ii) TheListingAgreemententeredintobytheCompanywith theNationalStockExchangeof IndiaLtd.andthe BSE Limited and SEBI (Listing Obligationsand Disclosure Requirements) Regulations, 2015(effective1stDecember,2015).

Wefurtherreportthat:



TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectors,IndependentDirectorsandaWomanDirector.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.Adequatenotice isgiven toalldirectors toschedule theBoardMeetings.Agendaanddetailednotesonagendaweregenerallysentatleastsevendaysinadvanceandasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.Majoritydecision is carried throughwhile thedissentingmembers’viewsarecapturedandrecordedaspartoftheminutes.

We further report that there are adequate systems andprocesses in the company commensuratewith the sizeand operations of the company to monitor and ensurecompliance with applicable laws, rules, regulations andguidelines.

SushmaChhabraPractisingCompanySecretary

Place:NewDelhi FCSNo.:2460Date:24thMay,2016 C.P.No.:15832

Note:Thisreportistobereadwithourletterofevendatewhich is annexed as ‘Annexue-A and forms an integralpartofthisreport.

ANNEXURE- A TO THE SECRETARIAL AUDIT REPORTTo,TheMembers,India Glycols Limited

TheSecretarialAuditReportofevendateistobereadalongwiththisletter.1. Maintenanceofsecretarialrecordistheresponsibilityofthemanagementofthecompany.Ourresponsibilityisto

expressanopiniononthesesecretarialrecordsbasedonouraudit.2. Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceabout

thecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.

3. We have not verified the correctness and appropriateness of financial records andBooks of Accounts of thecompany.

4. Whereverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

5. The compliance of the provisions ofCorporate and other applicable laws, rules, regulations, standards is theresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

SushmaChhabraPractisingCompanySecretary

Place:NewDelhi FCSNo.:2460Date :24thMay,2016 C.P.No.:15832



Annexure BPARTICULARS AS REQUIRED UNDER SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 AND THE COMPANIES (ACCOUNTS) RULES, 2014.(A) CONSERVATION OF ENERGY(a) Step taken or impact on Conservation of Energy

1. EnergyAuditofthethermalsystemdonebyForbesMarshall.2. UtilizationofprocessdehydrationstreaminsteadofsteaminT-410sandT-510sresultinginLPsteamsaving.3. UtilizationofMPsteaminsteadofHPsteaminE-3610resultinginincreasedpowergenerationfrombackpressure

steamturbine.4. ReplacementofMPsteamwithLPsteaminE-1410resulting in increasedpowergenerationfrombackpressure

steamturbine.5. PreheatingofMEGEvaporatorrefluxwithMEGsidedrawproductresultinginMPsteamsaving.6. InstallationofFlashsteamrecoveryfromsteamBoilerdrumsblowdownPhase-2-threeBoilersresultinginLPsteam

saving.7. InstallationofLEDlightinginplaceofconventionalHVSV/HVMVlightingsystem(1stPhaseinstreetlighting)resulting

inenergysavings.8. UtilizationofDistilleryplant-spentlees&drainwaterofvacuumpumpsinourdistillationprocess,resultingsavingin

termofsteamsavings.(b) Steps taken by the Company for utilizing alternate sources of energy:

1. Utilizationofslopsforsteamgeneration.2. Solarlightsinstalled.

(c) Capital Investment on energy conservation equipments: Duringtheyear,theCompanyinvested`727.35lacsinenergyconservationequipments.(B) TECHNOLOGY ABSORPTION-(a) The efforts made towards technology absorption: SugarbasedGREENsurfactants.(b) Benefits derived like product improvement , cost reduction, product development or import substitution

1. SafeandEcofriendlySurfactants,CostReductionthroughalternativeRMsandProcessOptimization.2. DevelopedGREENPEG’sfortheConstructionIndustry.3. DevelopedNewGenerationSurfactantsforFabricandHardSurfaceCleaning.4. Productsforcontinuousdyingrange(CDR)basedonGREENCHEMISTRY.5. ProductsforSulphurindigodying.6. Co-PolymerAdditiveforPre-treatmentanddying.7. CosteffectiveDeinkingchemicalsforpaper.8. SurfactantsforCapsuleSuspension-ControlledReleaseApplications.9. NewcosteffectiveCombinationforHerbicide.

(c) In case of imported technology (imported during the last 3 years reckoned from the beginning of the financial year):(a) Detailsoftechnologyimported Nil(b) Yearofimport Nil(c) Whetherthetechnologybeenfullyabsorbed NA(d) Ifnotfullyabsorbed,areaswhereabsorptionhasnottakenplaceandthereasonsthereof. NA

(d) Expenditure incurred on Research and Development-Sl. No. Division/Place/Plant for which incurred Nature of Expenses (` In lacs)

Capital Recurring1. Chemical,Kashipur 1084.08 795.862 EnnatureBioPharma,Dehradun 17.68 138.71

Total 1101.76 934.57(C) Foreign Exchange Earning and Outgo: (` In lacs)

Sl. No. Particulars 2015-16 2014-151. ForeignExchangeearnings 81,575.12 96,151.792. ForeignExchangeoutgo 72,291.04 76,187.49

For and on behalf of the BoardPlace :Noida U.S. BhartiaDated :5thAugust,2016 Chairman and Managing Director

DIN:00063091



Annexure C

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIESfor the financial year ended 31st March 2016

1. A brief outline of the company’s CSR Policy, including overview of projects or programs undertaken and a reference to the web-link to the CSR policy and projects or programs:

CorporateSocialResponsibility(CSR)isawayofconductingbusiness,bywhichcorporateentitiesvisiblycontributeto thesocial good.TheessenceofCSR is to integrateeconomic,environmental andsocial objectiveswith thecompany’s operations and growth. CSR is the process by which an organization thinks about and evolves itsrelationshipswithsocietyforthecommongoodanddemonstratesitscommitmentbygivingbacktothesocietyfortheresourcesitusedtoflourishbyadoptionofappropriatebusinessprocessesandstrategies.

TheCSRPolicyoftheCompanyispostedonthewebsiteoftheCompany(www.indiaglycols.com).

Weblink:http://www.indiaglycols.com/investors/downloads/csr-policy.pdf

2. The composition of the CSR committee:

TheCSRCommitteeoftheCompanycomprisesofthefollowingmembers:

a)ShriU.S.Bhartia,Chairman

b)ShriR.C.Misra,Member,IndependentDirector*

c)ShriPradipKumarKhaitan,Member,IndependentDirector

d)ShriM.K.Rao,Member,ExecutiveDirector

*demised 28th April, 2016

3. Average net profit/loss of the company for last three financial years:

TheaveragenetlossoftheCompanyfortheprecedingthreefinancialyearswas`1488.44lacs.

4. Prescribed CSR expenditure (2% of the amount as in item no. 3 above) : Nil

5. Details of CSR spent during the financial year:(a) Total amount to be spent for the financial year: Nil

(b) Amount unspent, if any: NA

(c) Manner in which the amount spent during the financial year is detailed below: InviewofthelossesincurredbytheCompanyduringthelast3financialyears,theCompanywasnotunder

anyobligationtospendanyamountontheCSRactivitiesduringtheFY2015-16,however,theCompanyhasvoluntarilycontributed`5.57lacsonthefollowingactivitiesunderCSR:

S. No.

CSR project or activity identified

Sector in which the project is covered

Projects of Program(a) local area or other(b) specify the state and district where projects or program was undertaken

Amount outlay (budget) project or programs wise (in ` Lacs)

Amount spent on the projects or programs sub– head:(1) Direct expen-diture on projects or programs(2) Overheads (in ` lacs)

Cumulative Expenditure up to the reporting Period(in ` Lacs)

Amount spent: Direct or through implement-ing agency(in ` Lacs)

(1) (2) (3) (4) (5) (6) (7) (8)

1 Contributionforinfra-structureexpansionandmaintenanceofSchools

EducationPromotion

Kashipur(Uttarakhand)

N.A. 1.50 1.50 Direct



S. No.

CSR project or activity identified

Sector in which the project is covered

Projects of Program(a) local area or other(b) specify the state and district where projects or program was undertaken

Amount outlay (budget) project or programs wise (in ` Lacs)

Amount spent on the projects or programs sub– head:(1) Direct expen-diture on projects or programs(2) Overheads (in ` lacs)

Cumulative Expenditure up to the reporting Period(in ` Lacs)

Amount spent: Direct or through implement-ing agency(in ` Lacs)

(1) (2) (3) (4) (5) (6) (7) (8)

2 InstallationofIndiaMarkaHandPumps,handpiperepairing

Sanitation andsafedrinking water

Gorakhpur (UttarPradesh)

N.A. 0.37 0.37 Direct


N.A. 1.37 1.37 Direct

3 Blanketdistributiontopoor

Healthcare&Sanitation

Gorakhpur (UttarPradesh)

N.A. 0.93 0.93 Direct


N.A. 0.50 0.50 Direct

4 ProvidingAmbulanceserviceformedicalcamps including distributionofmedicines

Healthcare&Sanitation

Kashipur(Uttara-khand)

N.A. 0.60 0.60 Direct

5 Medicalfacilityprovidedtofloodvictims

Helpingfloodaffectedvictims

Gorakhpur (Uttar Pradesh)

N.A. 0.30 0.30 Direct

TOTAL 5.57 5.57

6. Incasethecompanyhasfailedtospendthetwopercentoftheaveragenetprofitofthelastthreefinancialyearsoranypartthereof,thecompanyshallprovidethereasonsfornotspendingtheamountinitsBoardReport:

NotApplicable

7. Responsibilitystatement

WeherebyconfirmthattheimplementationandmonitoringofCSRPolicy,isincompliancewiththeCSRobjectivesandpolicyofthecompany


Place :Noida U.S. BhartiaDated :5thAugust,2016 Chairman, CSR Committee

DIN:00063091



Annexure DFORM NO. MGT-9

EXTRACT OF ANNUAL RETURNAs on the financial year ended on 31st March, 2016

[Pursuanttosection92(3)oftheCompaniesAct,2013andrule12(1)oftheCompanies (ManagementandAdministration)Rules,2014]

I. REGISTRATION AND OTHER DETAILS:

Particulars DetailsCIN L24111UR1983PLC009097RegistrationDate 19/11/1983NameoftheCompany INDIAGLYCOLSLIMITEDCategory/Sub-CategoryoftheCompany CompanyhavingShareCapitalAddressoftheRegisteredofficeandcontact details

A-1,IndustrialArea,BazpurRoad,Kashipur–244713,Distt.UdhamSinghNagar,UttarakhandTelNo.0120-3090100e-mail:[email protected]

WhetherlistedcompanyYes/No YesName,AddressandContactdetailsofRegistrarandTransferAgent,ifany

MCSShareTransferAgentLimitedF-65,IstFloor,OkhlaIndustrialArea,Phase-I,NewDelhi-110020TelNo.011-41406149e-mail:[email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANYAllthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-Name and Description of main products / services NIC Code of the Product/ service % to total turnover of the companyMonoEthyleneGlycol 3009 22EthyleneOxideDerivatives 3053 30EthylAlcohol 2200 36

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –Sl. No.

Name and address of the Company CIN/GLN Holding/ Subsidiary/ Associate

% of Shares Held

Applicable Section

A. HOLDING COMPANY - NILB. SUBSIDIARY AND ASSOCIATE COMPANIES:-i) ShakumbariSugarAndAlliedIndustriesLimited

Address:Village&P.O.Todarpur,Saharanpur-247231,UttarPradesh

U15429UP1994PLC016271 Subsidiary 98.89% 2(87)

ii) IGL Finance LimitedA-1,IndustrialArea,BazpurRoad,Kashipur-244713,Distt.UdhamSinghNagar,Uttarakhand

U65922UR1997PLC022992 Subsidiary 100% 2(87)

iii) IGLChemInternationalPteLtd.,Singapore ForeignCompany Subsidiary 100% 2(87)iv) IGLChemInternationalUSALLC,U.S.A. ForeignCompany Subsidiary 100% 2(87)

v) IGLInfrastructurePrivateLimited*PlotNo.2B,Sector-126,Noida-201304,Distt.GautamBudhNagar,UttarPradesh

U70102UP2014PTC066539 Subsidiary 100% 2(87)

vi) KashipurInfrastructureandFreightTerminalPrivateLimited408,AkashdeepBuilding,26A,BarakhambaRoad,NewDelhi-110001

U60200DL2011PTC227307 Associate Company

48.90% 2(6)

*Ceased to be a subsidiary w.e.f. 14th September, 2015.



IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)i) Category-wise Share HoldingCategory of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year % Change during the year

Demat Physical Total % of Total Shares


A. Promoters

(1) Indiana)Individual/HUF 1204410 2030249 3234659 10.45 861410 2030249 2891659 9.34 -1.11b)CentralGovt. 0 0 0 0.00 0 0 0 0.00 NAc)StateGovt(s) 0 0 0 0.00 0 0 0 0.00 NAd)BodiesCorp. 15672166 0 15672166 50.62 16015166 0 16015166 51.73 1.11e)Banks/FI 0 0 0 0.00 0 0 0 0.00 NAf)AnyOther 0 0 0 0.00 0 0 0 0.00 NASub-total (A) (1):- 16876576 2030249 18906825 61.07 16876576 2030249 18906825 61.07 Nil(2) Foreigna)NRIs-Individuals 0 0 0 0.00 0 0 0 0.00 NAb)Other–Individuals 0 0 0 0.00 0 0 0 0.00 NAc)BodiesCorporate 0 0 0 0.00 0 0 0 0.00 NAd)Banks/FI 0 0 0 0.00 0 0 0 0.00 NAe)AnyOther 0 0 0 0.00 0 0 0 0.00 NASub-total (A) (2):- 0 0 0 0.00 0 0 0 0.00 NATotal shareholding of Promoter (A) = (A)(1)+(A)(2)

16876576 2030249 18906825 61.07 16876576 2030249 18906825 61.07 Nil

B. Public Shareholding1. Institutionsa)MutualFunds/UTI 5023 11600 16623 0.05 12267 11600 23867 0.08 0.03b)Banks/FI 18280 3100 21380 0.07 14470 3100 17570 0.06 -0.01c)CentralGovt 0 0 0 0.00 0 0 0 0.00 NAd)StateGovt(s) 0 0 0 0.00 0 0 0 0.00 NAe)VentureCapitalFunds

0 0 0 0.00 0 0 0 0.00 NA

f)InsuranceCompanies

560565 0 560565 1.81 560565 0 560565 1.81 0.00

g)FIIs 0 0 0 0.00 0 0 0 0.00 NAh)ForeignVentureCapitalFunds

0 0 0 0.00 0 0 0 0.00 NA

i)Others(specify) 0 0 0 0.00 0 0 0 0.00 NASub-total (B)(1):- 583868 14700 598568 1.93 587302 14700 602002 1.94 0.012. Non- Institutionsa)BodiesCorporationi)Indian 2151731 35700 2187431 7.07 1846228 35600 1881828 6.08 -0.99ii)Overseas 0 0 0 0.00 0 0 0 0.00 NAb)Individualsi)Individualsharehold-ers holding nominal share capital upto ` 1 lakh

6492068 949162 7441230 24.03 6609622 923762 7533384 24.33 0.30

ii)Individualsharehold-ers holding nominal share capital inexcessof`1 lakh

1244129 29500 1273629 4.11 1407632 29500 1437132 4.64 0.53



Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year % Change during the year



c)Others(specify)i)Trust&Foundations 21220 0 21220 0.07 114920 0 114920 0.37 0.30ii)NonResidentIndividual

366097 166500 532597 1.72 328109 157300 485409 1.57 -0.15

Sub-total (B)(2):-Total Public

10275245 1180862 11456107 37.00 10306511 1146162 11452673 36.99 -0.01

Shareholding (B)=(B)(1)+(B)(2)

10859113 1195562 12054675 38.93 10893813 1160862 12054675 38.93 Nil

C.SharesheldbyCustodianforGDRs&ADRs

Nil Nil Nil Nil Nil Nil Nil Nil Nil

Grand Total (A+B+C) 27735689 3225811 30961500 100.00 27770389 3191111 30961500 100.00 Nil

(ii) Shareholding of PromotersSl No.

Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % change in share holding during the year

No. of Shares % of total Shares of the com-pany

%of Shares Pledged / en-cumbered to total shares

No. of Shares

% of total Shares of the com-pany

%of Shares Pledged / en-cumbered to total shares

1 KashipurHoldingsLtd 1,02,87,406 33.23 - 1,03,52,406 33.44 - 0.21

2 SajaniDeviBhartia 21,00,249 6.78 - 21,00,249 6.78 - NIL

3 MayurBarterPvtLtd 14,56,066 4.70 - 14,56,066 4.70 - NIL

4 JBCommercialCompanyPvtLtd

10,62,915 3.43 - 10,62,915 3.43 - NIL

5 FacitCommosalesPvtLtd

10,01,853 3.24 0.52 10,67,853 3.45 - 0.21

6 JBoseck&CompanyPvtLtd

7,09,401 2.29 - 8,39,401 2.71 - 0.42

7 SukhvarshaDistributorsPvtLtd

3,61,875 1.17 - 3,61,875 1.17 - NIL

8 AjayCommercialCompanyPvtLtd

6,26,255 2.02 - 6,26,255 2.02 - NIL

9 JayshreeBhartia 4,00,003 1.29 - 2,29,003 0.74 - -0.55

10 UmaShankarBhartia 4,48,722 1.45 - 4,48,722 1.45 - NIL

11 PoojaBhartia 1,83,592 0.60 - 97,592 0.32 - -0.28

12 SupreetVyapaarPvt.Ltd.

1,65,895 0.54 - 1,82,895 0.59 - 0.05

13 PragyaBhartia 86,300 0.28 - 300 0.00 - -0.28

14 VedantJhaver 15,793 0.05 - 15,793 0.05 - NIL

15 Lund&BlockleyPvt.Ltd. 500 0.00 - 500 0.00 - NIL

16 HindustanWiresLimited

0 0.00 - 65000 0.21 - 0.21

Total 18906825 61.07 - 18906825 61.07 - NIL



(iii) Change in Promoters’ Shareholding (please specify, if there is no change)Shareholding at the beginning of the year

Cumulative shareholding during the year (01.04.15 to 31.03.16)

S. No.

Name No. of shares at the beginning 01.04.2015

% of total shares of the Com-pany

Date of Change

Increase/ Decrease in sharehold-ing

Reason No. of shares % of total shares of the Com-pany

1 KashipurHoldingsLimited

1,02,87,406 33.23 29-Mar-2016 65,000 Intersetransferamongst promoters

1,03,52,406 33.43

2 FacitCommo-salesPvtLtd

10,01,853 3.24 29-Mar-2016 66,000 Intersetransferamongst promoters

10,67,853 3.45

3 JBoseck&CompanyPvtLtd

7,09,401 2.29 29-Mar-2016 1,30,000 Intersetransferamongst promoters

8,39,401 2.71

4 JayshreeBhartia 4,00,003 1.29 29-Mar-2016 -1,71,000 Intersetransferamongst promoters

2,29,003 0.74

5 PoojaBhartia 1,83,592 0.60 29-Mar-2016 -86,000 Intersetransferamongst promoters

97,592 0.32

6 SupreetVyapaarPvt.Ltd.

1,65,895 0.54 29-Mar-2016 17,000 Intersetransferamongst promoters

1,82,895 0.59

7 PragyaBhartia 86,300 0.28 29-Mar-2016 -86,000 Intersetransferamongst promoters

300 0.00

8 HindustanWiresLimited

0 0.00 29-Mar-2016 65,000 Intersetransferamongst promoters

65,000 0.21

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Shareholding


S. No.

Name No. of shares at the begin-ning 01.04.2015

% of total shares of the Company

Date of Change

Increase/Decrease in shareholding

Reason No. of shares % of total shares of the Company

1 General Insur-anceCorpora-tionofIndia

560565 1.81 31-Mar-2016 0 Nilmove-mentduring the year

560565 1.81

2 BervinInvest-ment and Leas-ing Limited


224000 0.72

3 Anirudha BubnaTrust

9713 0.03 19-Feb-2016 93700 Purchase 103413 0.3331-Mar-2016 0 - 103413 0.33

4 Spark Securities PrivateLimited

34780 0.11 01-May-2015 47256 Purchase 82036 0.2608-May-2015 4847 Purchase 86883 0.2815-May-2015 12730 Purchase 99613 0.3231-Mar-2016 0 - 99613 0.32

5 NobleInternational PvtLtd


93316 0.30

6 MotilalOswalSecurities Ltd

0 0.00 31-Mar-2016 86837 Purchase 86837 0.28

7 MPrasadandColtd

7000 0.02 24-Apr-2015 4735 Purchase 11735 0.0401-May-2015 15802 Purchase 27537 0.0908-May-2015 814 Purchase 28351 0.0919-Jun-2015 555 Purchase 28906 0.0914-Aug-2015 5700 Purchase 34606 0.1119-Feb-2016 21600 Purchase 56206 0.1831-Mar-2016 9385 Purchase 65591 0.21



Shareholding


S. No.

Name No. of shares at the begin-ning 01.04.2015


Date of Change

Increase/Decrease in shareholding

Reason No. of shares % of total shares of the Company

8

MapleVyapaarPvtLtd

56273 0.18 10-Apr-2015 4000 Purchase 60273 0.1912-Jun-2015 3406 Purchase 63679 0.2119-Jun-2015 2074 Purchase 65753 0.2126-Jun-2015 2766 Purchase 68519 0.2203-Jul-2015 -100 Sale 68419 0.2210-Jul-2015 -1054 Sale 67365 0.2217-Jul-2015 824 Purchase 68189 0.2224-Jul-2015 6713 Purchase 74902 0.2431-Jul-2015 1775 Purchase 76677 0.2507-Aug-2015 -4921 Sale 71756 0.2314-Aug-2015 -9600 Sale 62156 0.2031-Mar-2016 0 - 62156 0.20

9

SanjeevBubna(HUF)Sbubna


55856 0.18

10 Anita Jaideep Sampat

48767 0.16 26-Jun-2015 1545 Purchase 50312 0.1631-Mar-2016 0 - 50312 0.16

(v) Shareholding of Directors and Key Managerial Personnel:Shareholding at the beginning of the year

Cumulative shareholding during the year (01-04-15 to 31.03.16)

S. No.

Name of Director/Key Managerial Personnel

No. of shares at the beginning 01.04.2015

% of total shares of the Com-pany

Date of Change

Increase/ Decrease in share-holding

Reason No. of shares


1 Shri Uma Shan-karBhartia

448722 1.45 NoChangeduring the year

- - 448722 1.45

2 Smt.JayshreeBhartia

400003 1.29 29-Mar-2016 -171000 Intersetransferamongst promoters

229003 0.74

3 *ShriRameshChandraMisra

500 0.00 NoChangeduring the year

- - 500 0.00

*Demisedon28thApril,2016

V. INDEBTEDNESS IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment(Amount in ` Crores)

Secured Loans excluding deposits

Unsecured Loans

Deposits Total Indebtedness

Indebtednessatthebeginningofthefinancialyeari)PrincipalAmountii)Interestduebutnotpaidiii)Interestaccruedbutnotdue

2,072.85-

3.40

65.30--

---

2,138.15-

3.40

Total (i+ ii+ iii) 2,076.25 65.30 2,141.55Change in Indebtedness duringthefinancialyear•Addition•Reduction•ExchangeDifference

118.811,143.42

3.86

5.52--

---

124.331,143.42

3.86NetChange 1,266.09 5.52 - 1,271.61Indebtednessattheendofthefinancialyeari)PrincipalAmountii)Interestduebutnotpaidiii)Interestaccruedbutnotdue

1,052.09-

2.24

70.82--

---

1,122.91-

2.24Total (i+ii+iii) 1,054.33 70.82 - 1,125.15



VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNELA. Remuneration to Managing Director, Whole-time Directors and/or Manager:

(Amount in `)

Sl. No. Particulars of Remuneration Name of MD/WTD/Manager Total Amount *Shri Uma Shankar Bhartia, CMD

Shri M. K. Rao, WTD

1. Gross salary

(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961

1,27,89,397 61,32,060 1,89,21,457

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961

9,40,603 3,91,769 13,32,372

(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961

Nil Nil Nil

2. StockOption Nil Nil Nil

3. SweatEquity Nil Nil Nil4. Commission

-as%ofprofit-others,specify

Nil Nil Nil

5. Others,pleasespecify Nil Nil NilTotal (A) 1,37,30,000 65,23,829 2,02,53,829Ceiling as per the Act 1,37,30,000 68,65,000 2,05,95,000

*RemunerationisaspertheapprovalaccordedbyCentralGovernment.

B. Remuneration to other directors:-(Amount in `)

S. no.

Name(s) Sitting Fees Commission Others Total Amount

1. Independent DirectorsShriPradipKumarKhaitan 2,30,000 Nil Nil 2,30,000ShriJitenderBalakrishnan 90,000 Nil Nil 90,000ShriRaviJhunjhunwala 80,000 Nil Nil 80,000ShriJagmohanN.Kejriwal 50,000 Nil Nil 50,000ShriRameshChandraMisra* 5,20,000 Nil Nil 5,20,000

2 Non-Executive DirectorShriAshwiniKumarSharma,NomineeDirector

40,000 Nil Nil 40,000

Smt.JayshreeBhartia 1,50,000 Nil Nil 1,50,000Total 11,60,000 Nil Nil 11,60,000Ceiling as per the Act - - - -

*demised on 28th April, 2016.



C. Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD(Amount in `)

Sl. No.

Particulars ofRemuneration

Key Managerial Personnel

Shri Rakesh BhartiaChief Execu-tive Officer

Shri Lalit Kumar Sharma, Com-pany Secretary (from 1st April to 31st May, 2015)

Shri Kapil Bhalla, Company Sec-retary(from 24th June, 2015 to 31st March, 2016)

Shri Anand Singhal,Chief Financial Officer

Total Amount

1. Gross salary

(a)Salaryasperprovi-sions contained in section 17(1)oftheIncome-taxAct,1961

1,70,38,973 5,69,657 15,11,843 46,62,276 2,37,82,749

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961

39,600 5,487 30,470 2,58,002 3,33,559

(c)Profitsinlieuofsal-aryundersection17(3)Income-taxAct,1961

Nil Nil Nil Nil Nil

2. StockOption Nil Nil Nil Nil Nil

3. SweatEquity Nil Nil Nil Nil Nil4. Commission

-as%ofprofit-others,specify

Nil Nil Nil Nil Nil

5. Others,pleasespecify Nil Nil Nil Nil NilTotal 1,70,78,573 5,75,144 15,42,313 49,20,278 2,41,16,308

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section ofthe Companies Act

BriefDescription

Details of Penalty /Punishment/ Compounding fees imposed

Authority[RD / NCLT/ COURT]

Appeal made,if any (giveDetails)

A. COMPANYPenalty

Punishment

Compounding

B. DIRECTORS NILPenalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULTPenalty

Punishment

Compounding



Annexure E

Details pertaining to remuneration as required under section 197(12) of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014TheremunerationpaidbytheCompanytoitsemployeesincludingDirectors,KeyManagerialPersonnelisinlinewiththeNominationandRemunerationpolicyoftheCompany.TheguidingprinciplesoftheNominationandRemunerationpolicyoftheCompanyisthatthelevelandcompositionoftheremunerationbereasonableandsufficienttoattract,retainandmotivateDirectors,KeyManagerialPersonnelandotherseniorofficials.(i) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive officer

andCompanySecretary in thefinancialyear2015-16 incomparison to thefinancialyear2014-15andratioofremunerationofeachDirectortothemedianremunerationoftheemployeesoftheCompany:

Name of Directors/ KMPs of the Company Remuneration for financial year 2015-16 (in `)

Remuneration for financial year 2014-15 (in `)

% increase in Remuneration in the financial year 2015-16

Ratio of Remuneration to MRE*for the financial year 2015-16

ShriU.S.Bhartia,Chairman&ManagingDirector

1,37,30,000 1,37,30,000 0.00 35.18

ShriM.K.Rao,WholeTimeDirector 65,23,829 64,50,085 1.14 16.72ShriRakeshBhartia,ChiefExecutiveOfficer 1,85,87,556 1,85,05,016 0.45 NAShriAnandSinghal,ChiefFinancialOfficer 52,73,637 54,23,581 (2.76) NAShriLalitKumarSharma,CompanySecretary# 5,99,497 24,11,374 NA NAShriKapilBhalla,CompanySecretary## 16,35,385 NA NA NA

*Median Remuneration of Employees # resigned w.e.f 31st May, 2015 ## appointed w.e.f 24th June, 2015 Smt. Jayshree Bhartia, Promoter Director, Shri Pradip Kumar Khaitan, Independent Director, Shri Ramesh

ChandraMisra,IndependentDirector,ShriJagmohanN.Kejriwal,IndependentDirector,ShriRaviJhunjhunwala,IndependentDirector,ShriJitenderBalakrishnan,IndependentDirectorandShriAshwiniKumarSharma,NomineeDirectorwerenotinreceiptofanyremunerationforthefinancialyear2015-16.

(ii) ThemedianremunerationofemployeesoftheCompanyduringthefinancialyear2015-16was`3,90,272/-.Inthefinancialyear2015-16,therewasanincreaseof14.10%inthemedianremunerationofemployees.

(iii) ThenumberofpermanentemployeesontherollsoftheCompanyasof31stMarch,2016and31stMarch,2015was1249and1404,respectively.

(iv) Averagepercentile increasemadeinthesalariesoftheemployeesotherthanmanagerialpersonnel inthelastfinancialyearwas11%whereaspercentile increase in themanagerial remunerationwas -0.36% for thesamefinancialyear.

(v) ItisaffirmedthattheremunerationpaidisaspertheRemunerationpolicyforDirectors,KeyManagerialpersonnelandotherEmployees.

Information regarding employees in accordance with the provisions of Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014A. Top Ten Employees of the Company in terms of remuneration drawn:Sr. No.

Name Age (in Years)

Designation Nature of Employment

#Gross Remuneration (In `)

Qualifications Total Experi-ence (Years)

Date of commence-ment of em-ployment with the Company

Previous Employment

1 Shri Rakesh Bhartia

47 ChiefExecu-tiveOfficer

Permanent 1,85,87,556 CA,CS,ICWA 24 31.07.2009 CEO,BajajHindustanLtd.

2 ShriU.S.Bhartia

62 ChairmanandManag-ingDirector

Contractual 1,51,70,000 B.Com(Hons.) 37 29.11.1996 ManagingDirector,HindustanWiresLtd.



Sr. No.

Name Age (in Years)

Designation Nature of Employment

#Gross Remuneration (In `)

Qualifications Total Experi-ence (Years)

Date of commence-ment of em-ployment with the Company

Previous Employment

3 ShriM.K.Rao

58 ExecutiveDirector

Contractual 69,51,508 M.Tech(ChemicalPlantDesign)

34 15.12.1988 IndianPetrochemi-calCorporationLtd,SeniorEngineer

4 Shri Anand Singhal

49 ChiefFinan-cialOfficer

Permanent 52,73,637 CA 26 02.01.2008 ChiefFinancialOfficer,AbhishekIndustries Ltd

5 ShriManojPahwa

53 President-EnnatureBiopharma

Permanent 51,17,373 B.Sc(ZBC),MBA(Market-ing)

32 01.06.2010 Director,SanatProducts,NewDelhi

6 Shri Rakesh KumarKhandal

58 President-R&DandBusinessDevelopment

Permanent 48,96,724 M.Sc(Chem-istry),PHD(Applied Chemistry)

35 12.05.2015 Vice-Chancellor,UttarPradeshTechnical University

7 ShriSanjeevGurwara

55 President-Marketing

Permanent 44,61,544 M.Sc(OrganicChemistry),MBA(Market-ing)

32 22.08.1994 BranchManager-Marketing,S.M.DyechemLtd-Mumbai

8 ShriK.K.Lal 56 SeniorVicePresident(P&M)

Permanent 41,45,002 B.ScEngineer-ing(Civil)

36 25.08.1986 Sr.Engineer-Civil,BiharCaustic&ChemicalsLimited,Palamau,Bihar

9 Shri Jyotirmoy Chakraborty

54 General Manager(Production)

Permanent 39,66,709 M.Tech-Chemical

27 03.07.2001 Sr.Manager-Prod.,LaffansPetrochemicalsLtd,Bharuch

10 ShriR.K.Sharma

52 General Manager(HSE)

Permanent 33,94,513 B.E.(Fire)Engineering

29 11.11.1988 StationOfficer,B.A.R.C.,Bombay

B. Employed throughout the year and in receipt of remuneration not less than ` 1,02,00,000/- per annum: Alreadycoveredinpoint(A)aboveC. Employed for part of the year and in receipt of Remuneration not less than ` 8,50,000/- per month: NIL

NOTES:1. #GrossRemunerationshownaboveincludessalary,houserentallowance,Company’scontributiontoProvident

Fundandotherperquisites.ValueofPerquisiteshavebeencalculatedonthebasisofIncomeTaxAct,1961.2. NoneoftheemployeementionedaboveisrelatedtoanyDirectoroftheCompany.3. ThereisnoemployeewhowasinreceiptofremunerationinexcessofthatdrawnbytheManagingDirectoror

WholetimeDirectorandholdsnotlessthantwopercentbyhimselforalongwithhisspouseanddependentchildren,fallingundertheprovisionsofSection197readwithRule5(2)(iii)ofCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.


Place : Noida U.S. BhartiaDated :5thAugust,2016 Chairman and Managing Director

DIN:00063091



ManagementDiscussion&AnalysisReport

PRODUCTS INDIA GLYCOLS LIMITED is one of the leadingmanufacturer of Glycols, Ethylene Oxide Derivatives,EthylAlcohol (Potable),NaturalGum&DerivativesandIndustrial Gases. Our belief in providing the desiredproductswiththehelpofthebesttechnologyisreflectedinourstate-of-the-artintegratedmanufacturingfacilities.Themanufacturingbuildingblocksarerepresented:

TheCompanyhasorganiseditsbusinessintochemicalsandothersegments.A. Chemicalsegmentscomprises:- •Glycols(MEG,DEG,TEGandHeavyGlycols) •EthyleneOxideDerivatives(EODs)B. EthylAlcohol(Potable)andExtraNeutralAlcoholC. OthersincludesHighSulphurAlcohol,HydroCholoric

Acid,NaturalGum,IndustrialGasesetc.The segment wise business share is indicated asfollows:-

Segment Sales Value 2015-16 (` In Crores)(Domestic + Exports)

% Share

A. CHEMICALS 2,006 62

B. ETHYL ALCOHOL (POTABLE)

1,163 36

C. OTHERS 70 2

TOTAL 3,239 100

CHEMICAL SEGMENTSales in the Chemical segment have decreased from` 2,309Crores in FY 2014-15 to ` 2,006Crores in FY2015-16. This segment is highest contributor at 62% tothetotalsalesvalueoftheCompany.Decreaseinvalueis on account of depressed global economic situation

which has resulted in reduction of commodity demandincludingGuargumanditsderivativesdemand.CompanyhasregulateditsdomesticsalesasitwasnotfeasibletomarketMEGusingexpensiveEthanol.

2013-14 2014-15 2015-16ChemicalSalesValue(`inCrores)

2,710 2,309 2,006

GLYCOLS SalesofGlycols[MonoethyleneGlycol(MEG),DiethyleneGlycol(DEG),TriethyleneGlycol(TEG)andHeavyGlycols]hasincreasedfrom90,140MTinFY2014-15to94,268MTinFY2015-16.However,duetolowinternationalpricesoftheGlycols,thesalesvaluedecreasedfrom` 706Croresto `700Crores,respectively.

Inviewofhigher feedstockcost, the focushasbeenonsales of Bio-MEG for exports, as realisation is highercompared to domestic sales of MEG where we areregulatingthesupplies.

ETHYLENE OXIDE DERIVATIVES (EODs) SalesunderEthyleneOxideDerivatives(EOD)businessdecreasedto95,000MTinFY2015-16from99,034MTduring previous year and resultantly, the sales valuealso decreased from ` 1,109 Crores to ` 974 Crores,respectively.As a prudentmeasure, the sales toChinamarketwasrestrictedinviewoftheverylowrealizations.

TheEthyleneOxideDerivativesproducedbytheCompanyareusedbydiverseindustrieslikeTextile,Agrochemicals,Detergents,Pharmaceuticals&PersonalCare,OilFieldandAutomotiveindustry,Paint&Coatingindustryetc.

TheCompanyaimstoincreaseitsbusinessbydevelopingnewproductsandapplicationsespeciallyinareasoftextilechemicals, oil field chemicals, paper chemicals, homecare&personalcareapplications.

ThethrustwouldbeinlinewiththestrategytomaximiseEODbusinessinviewofincreasingtheusageofEOforEODerivativesforimprovedmargins.

BIO-ETHOXYLATES We have initiated promotion of Bio-Ethoxylates in theinternationalmarketwhichisgainingacceptabilityandcanbeagoodopportunity for better realisation in thenichemarketsegments.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

PRODUCTS

INDIA GLYCOLS LIMITED is one of the leading manufacturer of Glycols, Ethylene Oxide Derivatives, Ethyl Alcohol (Potable),Natural Gum & Derivatives and Industrial Gases. Our belief in providing the desired productswith the helpof the best technology is reflected in our state-of-the-art integrated manufacturing facilities.

The manufacturing building blocks are represented :-

The Company has organised its business into chemicals and other segments.

A. Chemical segments comprises :-Glycols (MEG, DEG, TEG and Heavy Glycols)Ethylene Oxide Derivatives (EODs)

B. Ethyl Alcohol (Potable) and Extra Neutral Alcohol

C. Others includes High Sulphur Alcohol, Hydro Choloric Acid, Natural Gum, Industrial Gases etc.

The segmentwise business share is indicated as follows :-

Segment % Share

A. CHEMICALS Glycols (MEG, DEG, TEG and Heavy Glycols) 7,092 41% Ethylene Oxide Derivatives (EODs) 10,122 59%B. ETHYL ALCOHOL (POTABLE) -C. OTHERS -

TOTAL 17,214 100%

(domestic + Exports)

Sales Value 2015-16(Rs. In Millions)



OPPORTUNITIES & CHALLENGES MEGconsumptionforpolyesterindustryfor2015-16hasbeenaround2.8million tonnes.NewcapacitiesnamelySparshIndustry&Vacmetaddedduringthelastfinancialyeardespitefallingpricesandlowmarketsentiments.Thelimiting factor in thegrowthwas the fallingcrudepricesandlowerdemandinthemarketresultinginoverallgrowthof5-6%.

DomesticproductionofMEGwasaround1.2milliontonnesprimarily from Reliance & IOC and balance demand hasbeenmetbyimports.Overalldemandsupplybalancehavebeen favorable forMEGproducers in theworldmarket in2015-16but themarketwitnessedsteeppricesdrop from950$to600$perMTduringthefinancialyear.

IGL,in its longtermstrategy, isshiftingfromcommoditytonichemarketsandspecialityproductsandwoulddivertEOmoleculeforBio-MEGandEODerivative/Specialityproductswhichwillgiveusamuchbetterreturns.

We are promoting our Glycols as Bio/ Green MEG topotentialcustomersinterestedinmeetingtheirobjectiveofusingenvironment friendlychemicalsmadefromnaturalrenewable resources. We have converted this conceptinto a good business opportunity which will enable fullcapacityutilisationwithbetterrealisation.

Moreover,thenichemarketsofBio-MEGinthepackagedwater,automobile,personalcare&cosmeticsaregoingtogiveusbettermargins.

ETHYL ALCOHOL (POTABLE) AND EXTRA NEUTRAL ALCOHOLDuring the year, your Company registered total salesvalueof` 1150Croresascomparedto`691Croreslastyear in the Ethyl Alcohol (Potable) division. During theyearthrustwasgivenontheexportofhighqualityExtraNeutral Alcohol (ENA) and IGL has gained the positionof premium quality ENA suppliers in the internationalmarkets.

2013-14 2014-15 2015-16

ENASalesValue(`inCrores)

657 691 1,150

INDUSTRIAL GASESDuring the year under review, the Company produced21235 MT of Oxygen and 1074 MT of Nitrogen. BothOxygenandNitrogenwere sold in themarket andalsousedforinhouserequirement.Inaddition,Argonof3100MTwasalsoproducedanditssaleswere3096MT.

Industrial Gas Division also produced Beverage andIndustrial Grade Liquid Carbon Di-oxide (LCO2) atKashipur.Duringtheyear,yourCompanyhasproduced27095MTofLCO2anditssalewas27474MT.

Your Company also produced ETO (Ethylene Oxide &Carbon Dioxide Gas Mixtures) under the trade nameIGL-STERIGAS at its Kashipur Plant. It is suitable forsterilization of Disposable Surgical & Medical Devices,spices and packing substances like rubber plastic etc.TheCompanyhasinhousefacilityforproductionofEOand LCO2 which are also used in production of ETOand as such it is the only plant in India to have suchmanufacturing facility, which gives us a distinct edgeoverothersuppliers in themarket.During theyear, theCompanyhassold928MTofSteriGasascomparedto913MTinthelastyear.

Further, the Industrial Gases segment registered totalsalesofallgasesof`38Croreswhichwassameduringthelastyear.

2013-14 2014-15 2015-16

SalesValue(`InCrores)

40 38 38

EXPORTS Company has identified exports as a key future growthdriver.Ithasalreadyestablisheditselfasamajordomesticspeciality ethoxylates company and with the increasedcapacities, the scope for exportswould be explored forhighergrowth.

Duringtheyearunderreview,yourCompanyhasachievedtotalexportsalesvalueof`873Croresascomparedto`1,030Croresduringlastyear.ThedeclineinexportscanbeattributedtostrategiccutdownonthesalesofGlycolEther&AcetatesinviewoflowoperatingpriceinChinamarket.



Thefuturethrustwouldbe intheareaofmarketingBio-MEG & Bio-Ethoxylates to niche markets for achievingbettercontribution.

2013-14 2014-15 2015-16

ExportsSalesValue(` in Crores)

1,195 1,030 873

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

FINANCIAL REVIEWDuring the FY 2015-16 on a standalone basis, yourCompanyrecordedatotalrevenueof`2,329Croresascompared to `2,601CroresinFY2014-15,adecreaseofabout 10.46%. The Loss after depreciation, exceptionalitemsandtaxforFY2015-16was 34Croresascomparedto loss of ` 61Crores incurred during the FY 2014-15.The performance of the Company remained weak onaccountoflowerMonoethyleneGlycol(MEG)pricesdueto reduced crude oil prices. Also, the demand forGuarGumremainedlowduetosluggishdemandfromthemajorconsuming sector which is US shale. The performancewasfurtheraffectedasdomesticpricesofourfeedstockviz.molassesandalcohol,werehighonaccountofpooravailability of ethanol and diversion of ethanol towardstheimplementationofEthanolBlendingwithPetrol(EBP)Program of Government of India at an unrealistic andexorbitantpriceresultinginasharpincreaseinthepricesofethanollocally.Duringtheyearunderreview,theGrossFixedAssetshasincreased to ` 1,881CroresinFY2015-16from`1,811CroresinFY2014-15.Despite the adverse economic scenario, the Companyhasbeenregularinmeetingitsobligationstowardstimelypayment of principal/interest to Financial Institutions/Banks/Debenturesholders/FixedDepositholders.

HEALTH, SAFETY, ENVIRONMENT & MANAGEMENT SYSTEMS Companyhassignedon toResponsibleCare®Guiding

Principles 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 ofenvironmental protection, occupational safety & healthprotection, process safety, product stewardship andlogistics, aswell as to continuously improvedialogwiththeneighboursandthepublic.

HEALTHYourCompanyaccordsveryhighprioritytoprovidehealthyand safeworkingenvironment.Companyhasamedicalcenter at factory sitewith basic amenities; two qualifiedand experienced doctors with trained and experiencedpara-medical personnel are available round the clock tomeetanycontingency.TheCompanyalsohasaqualifiedOccupational Health Physician. Company has also anambulance to provide necessary assistance in case ofany emergency. All employees are required to undergoannualmedicalcheck-upforearlydiagnosisofanyhealthproblems.Companyhasmadearrangementsfortreatmentofemployeesandtheirdependentsunder themediclaiminsurancepolicy,whichallowsemployeetoavailtreatmentfromanyofthelistedhospitalswithouthavingtomakeanyimmediatecashpayments.Thisprovides theemployeesmuchneededemotionalandfinancialsecurity.CompanyorganizesblooddonationcampatIndiaGlycolsLtdaspartofcommunitywelfareactivities.Company also organizes medical camps at nearbyvillages and organize/assist in National health relatedprograms in the nearby villages as part of communitywelfareactivities.

SAFETYYour Company has set up elaborate safety systems toensurepropersafeworkenvironment.Emphasisisgiventopreventionofanyaccident.Asaresultofstrictsafetynormsbeingfollowed,Companyhasbeenabletomaintaingoodsafetyrecordandhasreceivedvariousprestigiousnationaland internationalsafetyawards recognizing thesafeworkingenvironmentavailableatthefactory.A Central Safety Committee has been constituted tocontinuously review and upgrade the safe workingpractices. Emergency management plan is in place formeeting any kind of emergency. Proper systems havebeensetup to recordandreportanyaccident,which isthoroughly investigated and corrective action taken forfutureprevention.Atworkplaceappropriateprotectiveequipmentandgearsare provided to the employees and usage of the sameisstrictlymonitoredtoensurehighlevelofsafety.Safetytraining programs are regularly conducted for trainingthe employees in proper use of safety equipments andfollowingthesafeworkpractices.



The Company always encourage internal and externalstakeholderbyconductingmotivationalprogramonsafetyby celebration ofNationalSafety day, FireServiceDayand Transport safety awareness program to promotesafeworkpracticesandenvironment insideandoutsidepremises. Various incentive schemes are in operationfor motivating the employees to ensure working in thesafeenvironment.TheCompanyhasitsownFireStationfullyequippedwithFireTenders,moderncommunicationfacilities and elaborate fire hydrant system and otherequipmentwhicharemannedandsupervisedbytrainedexperts. Live fire trainingdrills areorganized toprovidehands-ontrainingtotheemployees.

ENVIRONMENTAL STEWARDSHIPEnvironmentalstewardshipreferstoresponsibleuseandprotectionofthenaturalenvironmentthroughconservationandsustainablepractices.

YourCompanyusesmolasses,residueproductofsugarmillsgeneratedintheprocessofmanufacturingofsugar.Themolassesconvertedintoalcoholinthecaptivedistilleryandthereafterusedintheprocesstomakeethyleneoxideanditsproducts.Companyhassetupelaboratesystemsby making substantial capital investments for propertreatment of the effluent generated and meets all therequirementsinthisregard.

TomakethesystemmoreenvironmentalfriendlyCompanyhas developed a green belt all around its factory bygrowingapprox.1,20,000treesofdifferentspeciessomeofwhich are fruit bearing in addition to providing greencover.Allpossibleeffortsarebeingmadetopreservetheenvironmentandimprovethesameasfaraspossible.

TheCompanyhasalreadyachievedzeroeffluentdischargefromtheirEthanolPlantsbyinstallingROsystemfollowedbyBio-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 INITIATIVESIndia Glycols Sustainable Solutions makes it easy forcustomerstoidentify,evaluateandselecttherightmaterials.There are number of sustainable solutions and productgrades. The rawmaterial, properties, performance and/orcontentofthesematerialsmakeasignificantcontributiontoreduceenvironmentalimpact,byloweringcarbonemissionsandmaximizinguseoftheearth’slimitedresources.

SustainablesolutionsarebasedonnumberofdefinedactionplansandstandardbasedonLifeCycleAssessment(LCA)methodologies. IndiaGlycolsSustainablesolutionsenablecustomerstoconfidentlychoosehigh-performancematerialsthatadvancetheirenvironmentalandbusinessgoals.Companyisworkingforintegratingthelifecycleperspectivein management system, as per revised EnvironmentalManagement System for driving product and processtowardsamoresustainabledirection.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”.TheLCAstudywasconductedona purchased software-SIMAPROand report of “LCAonBio-MEG”gotaPeerReviewed.IncontinuationCompanyhasalsoconductedLifeCycleAssessment (LCA) study for its other products as Bio-Ethanol, Bio-Ethylene Oxide, Bio-Glycols and Bio-PolyEthyleneGlycolsetc.CompanyisworkingcontinuousonLifeCycleAssessment(LCA)studyforitsotherproductsasEthyleneOxidederivativesandspecialtychemicals.The Company always encourage stakeholder byconducting motivational program on environmental bycelebration ofWorld Environmental Day. Company hastakenupseveral initiatives inpromotingclimatechangeand environment-sustainable projects. Company’sGorakhpurplanthasgotitsLargescaleCDMproject(Title:BiomassbasedCogenerationProjectactivitytakenupbyIGLatGorakhpur,U.P;AnnualCERs:110157)registeredatUNFCCC.

MANAGEMENT SYSTEMS•INTEGRATED MANAGEMENT SYSTEMYourCompanyishavingIntegratedManagementSystem(IMS) comprising of Quality Management System (ISO9001:2008), Environmental Management System (ISO14001:2004),OccupationalHealth&SafetyManagementSystem(OHSAS18001:2007),FoodSafetyManagementSystem(ISO22000:2005)FoodSafetySystemCertificate,(FSSC 22000). Energy Management System (ISO50001:2011) and Social Accountability (SA 8000:2008).IntegratedManagementSystemhasbeenaccreditedbyM/sDNV,arenownedcertificationagency.

YourCompanyisworkingtowardsthenewrevisedHighLevel Structure of Quality Management System (ISO9001:2015) and Environmental Management System(ISO14001:2015).



Specialemphasisonrisk-basedthinkinghasbeenthenewfocus of Quality Management System & EnvironmentalManagement System. This risk-based thinking enablesto determine the factors that could cause deviation inprocesses and thereby inmanagement systems, whichmayposebusiness risk in turn.This risk-based thinkingoffers opportunity to put necessary controls, tomitigateandminimizetheprematurerisks,inplace.Furthermore,preventive actions can be implemented to avoid anypotential business risk.Value addition toEnvironmentalManagementSystem is itsnew focusandemphasisonLifeCyclePerspectivetoachievesustainabledevelopmentby balancing three pillars Environment, Society andEconomywhichisessentialtomeetthepresentdayneedof sustainable business without compromising abilityof future generation and rendering them impaired. Wehavesuccessfully launchedand implementedBehaviourBasedSafety(BBS)namingitwithanappropriatename,derivedbyopenforumconsensus“BHAVISHYABANAYESURAKSHIT”.

•PROCESS SAFETY MANAGEMENT SYSTEMTheCompanystartedworkingtowardsimplementationofProcess SafetyManagement (PSM) in the organizationto ensure systematic and high level process safety byelaboratingitsspecificelementsandensuringthesafetyofemployees,environmentandphysicalplantassets intheeventofanyunexpectedprocessexcursion.LEAN MANAGEMENTYour Company is adopting a systematic approach toidentifying and eliminating non-value-added activitiesthroughcontinuousimprovementbyfollowingtheproductthrough flow processes based on a signal from thecustomers(internal&external).

TheCompanyusesthebuildingblocksof–standardizedwork,optimizationofmanpower,workplaceorganization5S&visualcontrols,materialhandlingsystems,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.Your Company is 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(R&D)isoneofthekeydriversfor the sustainability and growth of business at IndiaGlycolsLimited(IGL).OurInnovationstrategyfocusesoncreatingvalueformoneyforitscustomers.

Thedevelopmentalactivitiesarecarriedoutofthestate-of-the-artR&DCentrelocatedatKashipur.ThecentreisequippedwithmodernandadvancedinstrumentsandtheR&Dteamconsistsofhighlydedicatedresearcherswithdiverseexperienceandexpertise.

Company’sfocustodelivernewandinnovativeproductsto the market meeting consumer needs and providingsolution to application problems for its customers hasensuredconsumerloyalty,andprofitablegrowthovertheyears.

Therapidlychangingenvironment,waterpollution, risingdemandforenergyandneedforclimateprotectionpresentglobal challenges that wemust address with innovativesolutions through GREEN CHEMISTRY is a key focusarea of IGL. Our efforts have led to many customizedvalue added products and processes with emphasis on“Sustainable”approachesviauseofrenewableRMsandsavingsofenergyandwater.Theseproductsandprocessesaredesignedtomeetmostoftheinternationalstandardsandareaccreditedwithorganizations likeControlUnion(Europe)i.e.GOTS,Oekeotex,REACHetc.

The R&D Centre has been duly recognized by theDepartment of Science & 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): • Products for continuous dying range (CDR)

basedonGREENCHEMISTRY. • EnzymebaseProductsforDesizing/Scouring&

Peroxidebleachingprocess. • GreenproductsforFibrefinish. • Allinonechemicalforsinglebathscouringand

dyeing(withreducedwaterconsumption).3. Crop-Protection Business • Surfactants for capsule suspension- Controlled

Release Applications • SingleEmulsifierpackageformultipletoxicants. • Emulsifierforpowderandgranuleformulation. • SurfactantforspecialComboformulation.4. Oil & Gas Industry • New generation Low temperature & low dose

demulsifierforcrudeoil. • Eco-friendlyshaleencapsulationforDrilling5. Emulsion Polymerization & Paint Industry • Eco-friendlysurfactant(Vegetableoilbased)for

pigmentdispersion.



• Universalcolorantforwater&oilbasedpaint • APEOfreesurfactant forEmulsionPolymeriza-

tion/paints.

6. Paper Industry • Universalcookingaid. • Dry&wetstrengthresin. • Eco-friendlydeinkingchemicals.

7. Automobile industry • Eco-friendlysolventfreePourPointDepressant. • Lubricantadditives.

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

surfactantforpersonalcareproducts. • Bio-Esterforpersonalcareproducts. • Surfactantforhardsurfacecleaningagent

9. Construction chemicals • SpecialtygreenEthoxylate forPolycarboxylate

aswaterreducingagent&strengthimprover.

ThemostimportantproductdevelopmentprincipleofIGL’sR&Dhasbeentofocuson3Esi.e.Efficiency;EconomicandEnvironmentfriendliness.TheR&Dnotonlydevelopstheproductsasper theneedof thecustomersbutalsoensures the smooth performance of the products atcustomers'endviaveryeffectivetechnicalserviceTeam.Further, the life cycle analysis and biodegradability ofthese products are ensured prior to the launch of theproducts.

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 Number of Employees on Company’s role havebeenaround1249.

DISCLOSURE OF ACCOUNTING TREATMENTThe financial statements of the Company have beenprepared in accordance with the accounting principles generally accepted in India, including the AccountingStandardsspecifiedunderSection133oftheCompaniesAct,2013readwithRule7oftheCompanies(Accounts)Rules,2014.

CAUTIONARY STATEMENTThestatementmadeinthisreportdescribingtheCompany’sexpectations and estimationsmay be a forward lookingstatement within the meaning of applicable securitieslawsandregulations.ActualresultsmaydifferfromthoseexpressedorimpliedinthisreportduetotheinfluenceofexternalandinternalfactorswhicharebeyondthecontroloftheCompany.



ReportonCorporateGovernanceTheDirectorspresenttheCompany’sReportonCorporateGovernancefortheyearended31stMarch,2016incompliancewiththeSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

I. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCEGoodcorporatepracticesensure thataCompanymeets itsobligations tooptimizeshareholders’ value.CorporategovernancehasassumedgreatsignificanceinIndiaintherecentpastintheformofenactmentoftheCompaniesAct,2013(the“Act”)andtheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(“SEBIListingRegulations”).TheprovisionsoftheCorporateGovernanceprescribedbytheActandSEBIListingRegulations,forthetimebeinginforce,havebeencomplied.

II. BOARD OF DIRECTORSa) Composition of the Board Ason31stMarch,2016,theBoardofDirectorsoftheCompany(the“Board”)comprisedofnineDirectorsofwhich

sevenareNon-ExecutiveDirectors,oneManagingDirectorandoneExecutiveDirector.Outof thesevenNon-ExecutiveDirectors,fiveareIndependentDirectors,oneWomanDirectorandoneNomineeDirector.

ShriR.C.Misra,aveteranBoardmemberandanIndependentDirectordemisedon28thApril,2016. ThecompositionoftheBoardisinconformitywithRegulation17ofSEBIListingRegulationsreadwithSection149

oftheAct.b) Number of Board Meetings Duringtheyearended31stMarch,2016,fourboardmeetingswereheld.Thedatesofthemeetingsandattendance

ofdirectorsthereatareasunder:

Date Board Strength No. of Directors Present28thMay,2015 8 6

10thAugust,2015 8 7

3rdNovember,2015 9* 7

11thFebruary,2016 9* 7

*Shri Ashwini Kumar Sharma was appointed as Nominee Director of the State Bank of India, a lender of the Company, w.e.f. 1st September, 2015 for a period of 2 years till 31st August, 2017.

Themaximumgapbetweentwoboardmeetingswaslessthanonehundredandtwentydays.

c)NamesandcategoryoftheDirectors,theirattendanceatBoardMeetings,lastAnnualGeneralMeetingandthenumberofDirectorshipsandChairman/membership(s)heldinotherCompaniesason31stMarch,2016:

Name of the Director

Category Number of board meetings during the FY

2015-16

Attendanceat last AGM

Number of Directorships in

other Companies*

No. of committees in which

Chairmanship/membership held**

Held Attended Chairman-ship

Member Chairman-ship

Member

ShriU.S.Bhartia(ChairmanandManagingDirector)DIN:00063091

Executive(Promoter)

4 4 Yes 1 16 1 4

Smt.JayshreeBhartiaDIN:00063018

Non-Executive(Promoter)

4 2 No - 14 - -

ShriM.K.Rao(ExecutiveDirector)DIN:02168280

Executive 4 4 Yes - - - 1

ShriPradipKumarKhaitanDIN:00004821

Non-Executive&Independent

4 4 No - 9 - 4



Name of the Director

Category Number of board meetings during the FY

2015-16

Attendanceat last AGM

Number of Directorships in

other Companies*

No. of committees in which

Chairmanship/membership held**

Held Attended Chairman-ship

Member Chairman-ship

Member

Shri Jitender BalakrishnanDIN:00028320


4 3 No - 10 2 6

ShriRaviJhunjhunwalaDIN:00060972


4 3 No 2 9 1 4

Shri Jagmohan N.KejriwalDIN:00074012


4 1 No - 1 0 2

ShriR.C.Misra#DIN:00063146


4 4 Yes - - 2 2

Shri Ashwini KumarSharma##DIN:00157371

Non-Executive&Nominee

4 2 N.A. - 1 - -

NOTE:*Excludes Directorship in Section 8 and foreign companies.** Includes only Audit and the Stakeholders’ Relationship Committee of public limited companies including India

Glycols Limited.# demised on 28th April, 2016.## Appointed as a Nominee Director of the State Bank of India, a lender of the Company, w.e.f. 1st September, 2015 for

a period of 2 years till 31st August, 2017. The directorship/committee membership is based on the disclosures received from the Directors.

d) The number of directorship, committee mebership/chairmanship(s)ofalldirectors iswith in respectivelimitsasprescribedunder theActandSEBIListingRegulations.

e) The Board periodically reviews the compliancereportsofalllawsapplicabletotheCompany.

f) TheBoardofDirectorshasadoptedand laid downa Code of Conduct for all directors and seniormanagement personnel. The Code of Conduct ispostedonCompany’swebsite,atthelink-

(http://www.indiaglycols.com/investors/downloads/code_of_conduct.pdf).

TheCompany iscommitted toconduct itsbusinessin accordance with the applicable laws, rules andregulations andwith highest standards of businessethics.Thesaidcodeisintendedtoprovideguidanceand help in recognizing and dealing with ethicalissues, provide mechanism to report unethicalconductandtohelpfosteracultureofresponsibilityandaccountability.

All Board members and senior managementpersonnelhaveaffirmedcompliancewiththeCodeof

ConductfortheFY2015-16,declarationbyChairmanandManagingDirectortothiseffectisenclosedwiththisreport.

g) NoDirectorisinter-serelatedtoanyotherDirectorontheBoard,exceptShriU.S.BhartiaandSmt.JayshreeBhartia,whoarerelatedtoeachotherasspouse.

h) The number of shares held by Non-ExecutiveDirectorsoftheCompanyisasunder:Name of Director Number of SharesSmt.JayshreeBhartia 2,29,003ShriR.C.Misra# 500

# demised on 28th April, 2016. The Company has not issued any convertible

instruments.i) Independent Directors (IDs) are Non-Executive

DirectorsasdefinedunderRegulation16(1)(b)oftheSEBIListingRegulationsreadwithSection149(6)oftheAct.Thetermsandconditionsoftheappointmentof the IDs, includingdutiesof IDs,aredisclosedonthewebsiteoftheCompany.ThemaximumtenureofIDsisincompliancewiththeAct.



AllIDshaveconfirmedthattheymeetthecriteriaofIndependenceasmentionedunderSection149(7)oftheActandRegulation16(1)(b)of theSEBIListingRegulationsandtheymaintainthelimitofDirectorshipasprovidedundertheActandRegulation25of theSEBIListingRegulationsandthe limitofcommitteemembership.

The Company ensures that the IDs have beenproperlyinformedabouttheirroleandresponsibilitiesintheCompany,natureof theIndustry inwhichtheCompanyoperates,businessmodeloftheCompanythrough various presentations during the boardmeetings.

The details of the familiarization programme to IDsare disclosed on the Company’s website, link ofwhich is as below: http://www.indiaglycols.com/investors/downloads/Familiarization-programme-for-Independent-Directors.pdf

During theFY2015-16, twomeetingsof the IDswereheld on 3rd November, 2015 and 11th February, 2016withoutthepresenceofNon-IndependentDirectorsandthe members of the management. The IDs, inter-alia,reviewedtheperformanceofNon-IndependentDirectors,ChairmanoftheCompanyandtheBoardasawhole.

III. COMMITTEES OF THE BOARDa) Audit Committee: TheAudit Committee is constituted in terms of the

provisionsofSection177oftheActandRegulation18of theSEBIListingRegulationsandperformsallthefunctionsspecifiedtherein.

Terms of Reference: ThebrieftermsofreferenceoftheAuditCommittee

areasunder:1. Recommendationforappointment,remuneration

and terms of appointment of auditors of theCompany;

2. Reviewandmonitortheauditor’sindependence,performanceandeffectivenessofauditprocess;

3. Examine and review of financial statement; toensureitscorrectness,sufficiencyandcredibilitybefore submission to the Board andmay alsodiscuss any related issues with the internal and statutory auditors and themanagement of theCompany,withparticularreferenceto:(a) Directors’ Responsibility Statement to be

includedinBoard‘sReport.(b) Changes, ifany, in theaccountingpolicies

andpracticesandreasonsforthesame.(c) MajorAccountingentriesinvolvingestimates

based on the exercise of judgment bymanagement.

(d) Significant adjustments made in financialstatementsarisingoutofAuditfindings.

(e) Compliance with listing and other legalrequirementsrelatingtofinancialstatements.

(f) Disclosure of any Related partyTransactions.

(g) QualificationsinthedraftAuditReport;4. Approval and/or any subsequent modification

of transactions of the Company with relatedparties;

5. Scrutiny of inter-corporate loans andinvestments;

6. ReviewthefinancialstatementsoftheSubsidiaryCompanies,inparticular,theinvestmentsmadebytheunlistedsubsidiarycompany;

7. Valuation of undertakings or assets of theCompany,whereveritisnecessary;

8. Evaluationof internalfinancialcontrolsandriskmanagementsystems;

9. Monitoring theenduseof fundsraised throughpublicoffersandrelatedmatters;

10. Call for the comments of the auditors aboutinternal control systems, the scope of audit,includingtheobservationsoftheauditors;

11. InvestigateintoanymatterinrelationtotheitemsspecifiedaboveorasmaybereferredtoitbytheBoardandforthispurposeshallhavepowertoobtainprofessionaladvicefromexternalsourcesandhavefullaccesstoinformationcontainedintherecordsoftheCompany;

12. Review the complaints receivedunder the vigilmechanism fordirectorsandemployeesof theCompanytoaddressgenuineconcernsinsuchmannerasprescribedundertherules;

13. Review the reason for substantial defaults inthe payments to the depositors, shareholders,debentureholdersandcreditors;

14. Approval of new appointments of personheading the finance functions after assessingthequalifications,experienceandbackground;

15. MandatorilyreviewtheManagementdiscussionandanalysisoffinancialconditionsand resultsofoperations;and

16. Reviewreportof the internalauditors,statutoryauditors.

Composition Ason31stMarch,2016,theCommitteecomprisesof

threeNon-ExecutiveIndependentDirectors,namely,Shri R.C. Misra, Shri Pradip Kumar Khaitan, ShriJagmohanN.Kejriwal andOneExecutiveDirector,ShriM.K.Rao.TheCompanySecretaryactsasthesecretarytotheAuditCommittee.



Post demise of Shri R.C. Misra, Chairman of theAudit Committee on 28th April, 2016, Shri PradipKumarKhaitanwasappointedastheChairmanoftheCommitteew.e.f26thMay,2016.

Meetings and Attendance The Committee met four times during the year on

28thMay, 10thAugust, 3rd November, 2015and11th February,2016.Thenecessaryquorumwaspresentforallthemeetings.Theattendanceofthemembersatthemeetingsisasfollows:Name of Members Status No. of Meetings

Held AttendedShriR.C.Misra* Chairman 4 4

ShriPradipKumarKhaitan**

Member 4 4

Shri Jagmohan N.Kejriwal

Member 4 1

ShriM.K.Rao Member 4 4

* demised on 28th April, 2016 ** Chairman w.e.f. 26th May, 2016

Allthememberspossesssoundknowledgeoffinance,accountingpracticesandinternalcontrols.

TheAuditCommitteeinvitessuchoftheexecutives,as it considers appropriate, particularly theheadofthefinancefunction,representativesoftheStatutoryAuditors,representativesoftheInternalAuditor.TheChairmanoftheAuditCommitteewaspresentatthelastAnnualGeneralMeeting.

b) Nomination and Remuneration Committee TheNominationandRemunerationCommittee(NRC)is

constitutedintermsoftheprovisionsofSection178oftheActandRegulation19oftheSEBIListingRegulationsandperformsallthefunctionsspecifiedtherein.

Terms of Reference: The brief terms of reference of the NRC are as

under:1. To identify the persons who are qualified to

becomedirectors andwhomay be appointed inseniormanagementpositionsoftheCompany;

2. To recommend the appointment of and salary,perquisites and commission payable to theManagingDirector,ExecutiveDirectorandNon-Executive Directors comprising the Board ofDirectorsoftheCompany;

3. To recommend the appointment of and salary,perquisites and allowances payable to the ChiefExecutiveOfficer,ChiefFinancialOfficer,CompanySecretaryandotherKMPs&functionalheads;

4. Toformulateattractionandretentionstrategiesforemployees;

5. To formulate theNomination andRemunerationPolicy;

6. Suchotherkeyissues/mattersasmaybereferredbytheBoardorasmaybenecessaryinviewofthe SEBI Listing Regulations or any statutoryprovisions;

7. FormulationofcriteriaforevaluationofIndependentDirectorsandallotherdirectorsoftheBoard;and

8. To formulate the criterion for determiningqualifications,positiveattributesandindependenceofadirectorandrecommendtotheBoardapolicyrelatingtotheremunerationforthedirectors,keymanagerial personnel and other employees in accordancewiththeprovisionsmentionedintherelevantsection.


threeNon-Executive IndependentDirectorsnamely,ShriR.C.Misra,ShriPradipKumarKhaitanandShriJagmohanN.Kejriwal.TheCompanySecretaryactsasthesecretarytotheNRC.

PostdemiseofShriR.C.Misra,ChairmanoftheNRC28thApril,2016,theCommitteewasreconstitutedon26thMay,2016byinductingShriRaviJhunjhunwala,aNon-ExecutiveIndependentDirector.

Meetings and Attendance TheCommitteemettwiceduringtheyearon28th May,

2015 and 11thFebruary,2016.Thenecessaryquorumwaspresentforallthemeetings.Theattendanceofthemembersatthemeetingsisasfollows:

Name of Members Status No. of Meetings Held Attended

ShriR.C.Misra* Chairman 2 2


Member 2 Nil

ShriPradipKumarKhaitan

Member 2 2

*demised on 28th April, 2016

Nomination, Remuneration and Evaluation Policy The Nomination, Remuneration and Evaluation

Policy (the “Policy”) is formulated and adopted inlinewithSection178oftheActandtheSEBIListingRegulationstoprovideaframeworkandsetstandardsfor the nomination, remuneration and evaluation ofthe Directors, Key Management Personnel (KMP)andofficialcomprisingoftheSeniorManagement.

Board Membership Criteria The basis for the NRC to select a candidate for

appointment to the Board are enhancing thecompetenciesoftheBoardandattractingaswellas



retaining talented employees for role of KMP andofficialcomprisingoftheseniormanagement.Whenrecommendingacandidateforappointment,theNRChasregardto:

a) Assessing the appointee against a range ofcriteria which includes but not be limited toqualifications, skills, regional and industryexperience, background and other qualitiesrequiredtooperatesuccessfully intheposition,withdueregardforthebenefitsfromdiversifyingtheBoard;

b) The extent to which the appointee is likely tocontribute to the overall effectiveness of theBoard, work constructively with the existingdirectors and enhance the efficiencies of theCompany;

c) The skills and experience that the appointeebringstotheroleofKMP/seniorofficialandhowan appointee will enhance the skill sets and experienceoftheBoardasawhole;

d) The nature of existing positions held by theappointee including directorships or other relationshipsand the impact theymayhaveonthe appointee’s ability to exercise independentjudgment;

e) Personalspecifications.

Remuneration Policy TheguidingprinciplefortheremunerationofDirectors,

KMPandSeniorManagement is that the level andcompositionofremunerationshallbereasonableandsufficient to attract, retain and motivate Directors,KMPandotherSeniorOfficials.

TheDirectors,KMPandotherSeniorOfficial’ssalaryshallbebased&determinedontheindividualperson’sresponsibilitiesandperformanceand inaccordancewiththelimitsasprescribedstatutorily,ifany.

The NRC determines individual remunerationpackages for Directors, KMPs and Senior OfficialsoftheCompanytakingintoaccountfactorsitdeemsrelevant,includingbutnotlimitedtomarket,businessperformanceandpracticesincomparablecompanies,having due regard to financial and commercialhealth of the Company as well as prevailing lawsand government/other guidelines. The CommitteeconsultswiththeChairmanoftheBoardasitdeemsappropriate.

The Non-Executive Directors shall be entitled toreceive remuneration by way of sitting fees forattending every meeting of the Board/ committeesasapprovedbytheBoard,profitrelatedcommissionasmay be recommended by theCommittee to the

Boardandsubsequentlyapprovedbythemembers.TheremunerationpayabletotheDirectorsshallbeaspertheCompany’spolicyandshallbevaluedaspertheIncomeTaxRules.

TheIndependentDirectorsshallnotbeentitledtoanystockoption.

ThecriterionofmakingpaymenttotheNon-ExecutiveDirectors of theCompany is provided in thePolicyplacedon thewebsiteof theCompany (http://www.indiaglycols.com/investors/downloads/appointment-remuneration-evaluation-policy.pdf).

Performance Evaluation Criteria The evaluation/assessment of the Directors, KMPs

and the senior officials of the Company is to beconducted on an annual basis and to satisfy therequirementsoftheSEBIListingRegulations.

Following are the criteria that may assist in determining how effective the performances of the Directors /KMPs/Seniorofficialshavebeen:• Leadership&stewardshipabilities• Contributingtoclearlydefinecorporateobjectives

&plans• Communicationofexpectations&concernsclearly

withsubordinates• Obtain adequate, relevant & timely information

fromexternalsources• Reviewachievementofstrategicandoperational

plans,objectives,budgets• Regular monitoring of corporate results against

projections• Identify, monitor & mitigate significant corporate

risks • Assesspolicies,structures&procedures• Direct,monitor&evaluateKMPs,seniorofficials• Reviewmanagement’ssuccessionplan• Effectivemeetings• Assuring appropriate board size, composition,

independence,structure• Clearly defining roles & monitoring activities of

committees • Reviewofcorporation’sethicalconduct

Evaluation on the aforesaid parameters is beingconducted by the Independent Directors for eachof the Executive/Non-Independent Directors in aseparatemeetingoftheIndependentDirectors.

The Executive Director/Non-Independent DirectorsalongwiththeIndependentDirectorsevaluate/assesseachof the IndependentDirectorson theaforesaidparameters. Only the Independent Director beingevaluateddoesnotparticipateinthesaidevaluationdiscussion.



c) Stakeholders’ Relationship Committee The Stakeholders’ Relationship Committee (SRC)

is constituted in terms of the provisions of Section178oftheActandRegulation20oftheSEBIListingRegulationsandperformsallthefunctionsspecifiedtherein.

Terms of Reference The brief terms of reference of the Stakeholders’

Relationship Committee includes considering andresolving the grievances of security holders of theCompany includingcomplaintsrelatedto transferofshares,non-receiptofbalancesheet,non-receiptofdeclareddividendsandanyothermatter relating toshareholders/investorsgrievance.

Composition Ason31stMarch,2016theCommitteecomprisesof

two Non-Executive Independent Directors, namely,Shri R.C. Misra, Chairman of the Committee, ShriJagmohan N. Kejriwal and one Executive Director,ShriU.S.Bhartia.

Post demise of Shri R.C. Misra, Chairman of theStakeholders’RelationshipCommitteeon28thApril,2016,theCommitteewasreconstitutedbytheBoardon 26th May, 2016 by inducting Shri Pradip KumarKhaitan,aNon-ExecutiveIndependentDirector,whois also the Chairman of Stakeholders’ RelationshipCommittee.

Shri Ankur Jain is the Company Secretary andComplianceofficerw.e.f.1stJuly,2016.

Meetings and Attendance The Committee met four times during the year on

28th May, 10th August, 3rd November, 2015 and11th February,2016.

The necessary quorum was present for all themeetings. The attendance of the members at themeetingsisasfollows:

Name of Members Status No. of Meetings Held Attended

ShriR.C.Misra* Chairman 4 4

ShriU.S.Bhartia Member 4 4


Member 4 1

*demised on 28th April, 2016

Investors’ complaints received and resolved during the year

Duringtheyearunderreview,Companyhadreceived25Investors’Complaints.Allthecomplaintsreceivedwere duly redressed by the Company. As on 31st

March,2016,nocomplaintswereoutstanding.

d) Share Transfer Committee Terms of Reference TheShareTransferCommitteehasbeenconstituted

bytheBoardtoreviewandapprovetherequest for transfer/transmissionofsharesandissueofduplicateshare certificates. The Share Transfer CommitteealsoreviewsthestatusofShareholdingpatternoftheCompanyandsignificantchanges,ifany.


fourDirectors,namely,ShriU.S.Bhartia,ChairmanandManagingDirector,Smt.JayshreeBhartia,Non-ExecutiveDirector,ShriJagmohanN.Kejriwal,Non-ExecutiveIndependentDirectorandShriR.C.Misra,Non-Executive IndependentDirector.TheCompanySecretaryactsasthesecretarytotheShareTransferCommittee.

Meetings and Attendance TheCommitteemetfifteentimesduringtheyear.The

necessaryquorumwaspresent forall themeetings.Theattendanceofthemembersatthemeetingsisasfollows:Name of Members Status No. of Meetings

Held AttendedShriU.S.Bhartia Chairman 15 15Smt.JayshreeBhartia

Member 15 11


Member 15 Nil

ShriR.C.Misra* Member 15 15

*demised on 28th April, 2016.

e) Finance Committee Terms of Reference The brief terms of the Finance Committee are to

consider and approve inter-alia, Corporate DepositsandInvestment,investmentofsurplusfundsfromtimetotimeinmarketablesecurities,totakedecisionsontheBankingoperationsoftheCompanyandtoconsider,review&approvetheborrowingsbytheCompany.


twoDirectors, namely,ShriU.S.Bhartia,ChairmanandManagingDirectorandShriR.C.Misra,Directorand two senior officials of the Company namelyShri Rakesh Bhartia, Chief Executive Officer andShri Anand Singhal, Chief Financial Officer. ShriU.S.BhartiaistheChairmanoftheCommittee.TheCompany Secretary acts as the secretary to theFinanceCommittee.

The Committee was re-constituted on 5th August,2016 and has members namely Shri U.S. Bhartia,



ChairmanandManagingDirectorandShriM.K.Rao,ExecutiveDirector.

Meetings and Attendance TheCommitteemeteleventimesduringtheyear.The

necessaryquorumwaspresentforallthemeetings.

f) Risk Management Committee Terms of Reference The Board has constituted a Risk management

CommitteeinlinewiththeSEBIListingRegulationstoidentifytheexistingandprospectiveRisksattachedto the business of the Company; to monitor andreviewtheRiskManagementPlanoftheCompany;to suggest measures for mitigation of the RisksattachedtothebusinessoftheCompany;andtotakeany other action asmay be directed by theBoardof Directors in respect of the Risk Management.The committee shall also review and reassess theadequacy of the plan periodically and recommendproposedchanges.

Composition As on 31st March, 2016, the Committee comprises

of eight members including three Non-ExecutiveIndependent Directors namely, Shri RaviJhunjhunwala, Shri Pradip Kumar Khaitan, ShriJitender Balakrishnan; Shri Uma Shankar Bhartia,Chairman and Managing Director, Shri M.K. Rao,Executive Director and three Senior executives ofthe Company namely, Shri Rakesh Bhartia, ChiefExecutiveOfficer,ShriAnandSinghal,ChiefFinancialOfficerandShriAtulGovil,ITHeadasitsmembers.

TheCompanySecretaryactsasthesecretarytotheRiskManagementCommittee.

Meetings and Attendance The Committee met once during the year on

11th February, 2016. All thememberswere presentduringthemeeting.

g) Corporate Social Responsibility Committee Terms of reference The Corporate Social Responsibility Committee

has been constituted by the Board to formulateand recommend to the Board, a Corporate SocialResponsibility Policy which shall indicate theactivities to be undertaken by the Company asspecifiedinScheduleVIIoftheAct;recommendtheamountofexpendituretobeincurredontheactivitiesreferred above; and monitor the Corporate SocialResponsibility Policy of the Company from time totime.

Composition As on 31st March, 2016, the Committee comprises

of four members including two Non-ExecutiveIndependent Directors namely, Shri R.C. Misra(demisedon28thApril,2016),ShriP.K.Khaitanandtwo Executive Directors namely Shri U.S. Bhartia,ChairmanandManagingDirectorandShriM.K.Rao,ExecutiveDirector.ShriU.S.BhartiaistheChairmanof theCommittee.TheCompanySecretaryactsas

thesecretary to theCorporateSocialResponsibilityCommittee.

Meetings and Attendance TheCommitteemettwiceduringtheyearon28thMay

and3rd November,2015.Thenecessaryquorumwaspresentforallthemeetings.

h) Ethics Committee Terms of Reference The Ethics Committee of the Board has been

constituted to administer, implement the Code ofConductandEthicsandtoreviewthebreachofthesaidcodeandadvicetheactiontobetaken.


threeNon-Executive IndependentDirectorsnamely,ShriPradipKumarKhaitan,ShriR.C.MisraandShriJagmohanN.Kejriwalasitsmembers.

PostdemiseofShriR.C.Misraon28thApril,2016,theCommitteewasreconstitutedbytheBoardon26th May, 2016 by inductingShri JitenderBalakrishnan,a Non-Executive Independent Director. Shri PradipKhaitanistheChairmanoftheCommittee.

Meetings and Attendance TheDirectorsandtheseniormanagementconfirmed

compliance with the Code of Conduct for the FY2015-16.Nobreachofthesaidcodewasobserved.Duringtheyearunderreview,nomeetingwasheldofthemembersoftheEthicsCommittee.

Remuneration of Directors for FY 2015-16:(a) Executive Directors - (Amount in `)

Name of Director

Salary(Basic)

Perquisites / allowances

Retiral benefits

*Total fixed salary

ShriU.S.Bhartia

1,20,00,000/-

17,30,00/- - 1,37,30,000/-

ShriM.K.Rao

35,64,000/- 29,59,829/- - 65,23,829/-

*excludes contribution to Provident Fund & Gratuity

TheappointmentofExecutiveDirectorsisgovernedby the resolutions passed by the Board and theShareholders of the Company, which covers thetermsandconditionsofsuchappointment.

(b) Non- Executive Directors -Name of Director Sitting Fee

(in `)Smt.JayshreeBhartia 1,50,000.00ShriPradipKumarKhaitan 2,30,000.00ShriJagmohanN.Kejriwal 50,000.00ShriRaviJhunjhunwala 80,000.00ShriJitenderBalakrishnan 90,000.00ShriR.C.Misra 5,20,000.00ShriAshwiniKumarSharma 40,000.00



No Commission has been paid to the Directors. OnlysittingfeeswithinthelimitsprescribedundertheActreadwith Rules thereunder has been paid to Non-ExecutiveDirectors. Details of remuneration paid to the Directorsaregiven inFormMGT-9whichformsapartofBoard’sReport.DuringtheFY2015-16,legalprofessionalservicesfeeof`40,93,468/-(RupeesFortyLacsNinetyThreeThousandFourHundredandSixtyEightOnly)werepaidtoKhaitan&Co.,LLP,Advocates,inwhichShriPradipKumarKhaitan,DirectoroftheCompanyisapartner.Non-executiveDirectorsdidnothaveanyothermaterialpecuniaryrelationshiportransactionswiththeCompanyduringtheyearexceptasstatedabove.LettersofappointmenthavebeenissuedbytheCompanyto the Independent Directors, incorporating their roles,responsibilities,etc.,whichhavebeenacceptedbythem.The statutory provisions will apply with respect to thenoticeperiodofDirectors.Thereisnoseparateprovisionincludedforseverancefees intheresolutionsgoverningtheappointmentofDirectors.NostockoptionwasgiventoDirectorsduringtheyear.

IV. OTHER DISCLOSURES(a) Related Party Transaction Disclosures All transactions entered into with related parties under

theActandAccountingStandard(AS-18)duringtheFY2015-16wereapprovedbytheAuditCommittee.Further, the Company has nomaterially significanttransaction with the related parties viz. Promoters,Directors or the management or relatives and theirsubsidiaries, etc. that may have a potential conflictwiththeinterestoftheCompanyatlarge.Nomaterialrelated party transaction was entered into during the FY2015-16.Thedetails of relatedparty transactionswith the Company as required by AS-18 onRelatedParty Transactions have been given in Note no. 45of the Standalone Financial Statements forming partof Annual Report. Related Party Transactions Policyof theCompanyasapprovedby theBoardhasbeenuploadedontheCompany’swebsiteatthefollowinglink-

(http://www.indiaglycols.com/investors/downloads/Related-party-transactions-Nov-2014.pdf)

(b) No penalties or strictures have been imposed orpassed on the Company by the Stock ExchangesorSEBI or anyStatutoryAuthorities on anymatterrelatedtoCapitalMarketsfornon-compliancebytheCompanyduringlastthreeyears.

(c) As a conscious and vigilant organization, IndiaGlycolsLimitedbelievesintheconductoftheaffairsof itsconstituents ina fairand transparentmanner,byadoptingthehigheststandardsofprofessionalism,honesty, integrity and ethical behavior. In its

endeavourtoenableitsemployeestoreportconcernsabout unethical behavior, actual and suspectedfraud or violation of the Company’s conduct, theCompany has put in place a Whistle Blower/VigilMechanismPolicy.WhistleBlower/VigilMechanismprovides a channel to the employees to report tothe management concerns about the suspectedor confirmed malpractices and events. The policyprovide for the adequate safeguard of the personavailingthemechanismbymaintainingconfidentialityofallthemattersunderthepolicyandalsoprovidefordirectaccesstotheChairmanoftheAuditCommitteeinexceptionalcasesinthemannerlaiddowntherein.TheWhistleBlower/VigilMechanismPolicyispostedon theCompany’s website (http://www.indiaglycols.com/investors/downloads/vigil-mechanism-policy.pdf).ItisaffirmedthatnopersonnelhasbeendeniedaccesstotheAuditCommittee.

(d) The Company has also adopted Policy onDetermination of Materiality of Event/Information(http://www.indiaglycols.com/investors/downloads/Materiality-policy-for-Disclosure-to-Stock-Exchange.pdf), Policy on Preservation of Records/Archival(http://www.indiaglycols.com/investors/downloads/Policy-on-preservation-of-records-IGL-updated-11-02-2016.pdf)

(e) In compliance with the SEBI (Prohibition of InsiderTrading) Regulations, 2015, the Company hasadoptedCodeofConductforregulatingandmonitoringtradingbyInsiders.Thecodeadviseprocedurestobefollowedanddisclosures tobemade,whiledealingin shares of theCompany and cautioning them onconsequencesofnon-compliances.

(f) TheCompanyisincompliancewithalltheMandatoryrequirements stipulated inSEBIListingRegulationsanderstwhileClause49oftheListingAgreement.

Non-MandatoryRequirements:(i) The quarterly and half yearly results are

displayed on thewebsite of theCompany andare also published in widely circulated EnglishandRegionallanguagenewspapers.

(ii) TheInternalAuditorreportsdirectlytotheAuditCommittee. The Internal Auditor has regularmeetings with the Head of Finance prior toplacingofthereportsofInternalAuditorsbeforetheAuditCommitteeandtheBoard.

(g) Commodity price risk or foreign exchange risk andhedgingactivities

As theCompanyhave forexexposureand inorderto mitigate the fluctuations in exchange rate, theCompany ishedging its importandexport liabilitiesbyadoptingappropriatemeasures.



Subsidiary CompaniesThe Audited annual financial statements and theinvestmentsmadebyunlistedsubsidiarycompaniesareperiodicallyreviewedbytheAuditCommittee.Theminutesof the Board Meetings of Subsidiary Companies areperiodicallyplacedbeforetheBoardoftheCompany.TheCompanydoesnothaveanymaterialsubsidiaryasdefinedunder Regulation 16 of the SEBI Listing Regulations.A policy for determiningmaterial subsidiaries has beenformulatedandpostedontheCompany’swebsite(http://www.indiaglycols.com/investors/downloads/Policy-for-determining-Material-Subsidiaries.pdf).CEO/CFO CertificationTheChairmanandManagingDirectorandChiefFinancialOfficer have issued compliance certificate under theprovisionsofRegulation17(8)oftheSEBIListingRegulationswhichisannexedandformspartofthisReport.

V. SHAREHOLDERSa) General Body Meetings DetailsofthelastthreeAnnualGeneralmeetingsare

asunder:Financial Year

Date Time Location

2014-15 28.08.2015 12.30P.M.

A-1,IndustrialArea,BazpurRoad,Kashipur-244713,DisttUdhamSinghNagar,Uttarakhand

2013-14 20.09.2014 12.30P.M.


2012-13 18.09.2013 12.30P.M.


Special Resolutions under Section 81(1A) of theCompanies Act, 1956 were passed at the AGMheld on 18th September, 2013. Special Resolutionsunder Section 197 read with Schedule V, Section188,Section 14 and Section 41, 42 and 62 of theCompaniesAct,2013werepassedattheAGMheldon 20thSeptember2014.SpecialResolutionsunderSection41,42and62of theCompaniesAct,2013werepassedattheAGMheldon28thAugust,2015.

Postal Ballot During the FY 2015-16, no special resolution has

been passed through the exercise of postal ballot.NoneofthebusinesstobetransactedattheensuingAnnualGeneralMeetingrequirespassingaresolutionthroughPostalBallot.

b) Means of Communication Thequarterly,half-yearlyandannualfinancialresults

of the Company are sent to the Stock ExchangesimmediatelyaftertheyareapprovedbytheBoard.TheresultsaredisplayedonthewebsiteofBSELimitedandNationalStockExchangeofIndiaLimited(NSE).The results are also published in leading Englishand Hindi Newspapers in India which includes theFinancial Express, Uttar Ujala and posted on theCompany’sWebsitewww.indiaglycols.com.

c) General shareholder informationi) Annual General Meeting Date :Saturday,the24thSeptember,2016 Venue : A-1,IndustrialArea, BazpurRoad,Kashipur-244713, Distt.U.S.Nagar,Uttarakhand Time : 11.00A.M.ii) Financial Calendar - Financialyear:1st April to

31stMarch Forthefinancialyear2016-17,thetentativedates

forapprovalandadoptionofunauditedquarterlyfinancial resultswillbeby14thAugust,2016 forthefirstquarter,by14thNovember,2016forhalf-yearly,by14thFebruary,2017forthirdquarterandby15th May/30thMay,2017forthefourthquarterandannualauditedfinancialresults.

iii) Book Closure TheRegister ofMembers andShareTransfer

BooksoftheCompanyshallremainclosedfromTuesday,the20thSeptember,2016toSaturday,the24thSeptember,2016(bothdaysinclusive).

iv) Dividend - NodividendhasbeenrecommendedbytheBoardfortheFY2015-16.

v) Listing at stock exchanges and stock codes The name of the Stock Exchanges at which

theequitysharesoftheCompanyarelistedason31stMarch,2016and the respectivestockcodesareasunder:

Name of the Stock Exchange

Stock Code No./ Symbol

BSELimited(“BSE”)25thfloor,PhirozeJeejeebhoyTowers,DalalStreet,Mumbai-400001

NationalStockExchangeofIndiaLimited(“NSE”)ExchangePlaza,C-1,Block-G,BandraKurlaComplex,Bandra(East),Mumbai-400051

500201

Indiaglyco

Listing fees for the financial year ended 31st March,2017totheBSEandNSEhasbeenpaid.



TheISINnumberallottedtotheCompany’ssharesunderthedepositorysystemisINE560A01015.

vi) Market Price DataHigh/LowofmarketpriceoftheCompany’sequitysharestradedontheBSEandNSEduringeachmonthofFY2015-16isasunder-Month High Low

BSE NSE BSE NSEApr-15 105.00 104.95 82.00 81.25May-15 98.30 98.45 83.90 83.15Jun-15 89.20 89.50 77.35 77.00Jul-15 103.60 103.80 83.25 83.00Aug-15 114.30 114.40 81.40 80.25Sep-15 90.00 90.80 79.50 79.35Oct-15 105.00 105.90 87.50 87.20Nov-15 109.80 109.80 87.00 86.30Dec-15 111.60 111.80 93.00 93.00Jan-16 106.70 106.50 79.20 78.60Feb-16 93.00 93.20 65.25 65.00Mar-16 94.00 94.25 66.50 65.50

vii) Performance of Company’s equity shares in comparison to BSE Sensex and S&P CNX NIFTY ThegraphicalpresentationsofmovementofsharepricesofthecompanyonBSEandNSEduringtheyear

are as under:

a.INDIAGLYCOLS’PRICESVERSUSSENSITIVITYATBSE

b. INDIAGLYCOLS’PRICESVERSUSS&PCNXNIFTY

S&P CNX Nifty



viii) Registrars and Share Transfer Agents NameandAddress -M/sMCSShareTransferAgentLimited F-65,1st Floor,OkhlaIndustrialArea,Phase-I,NewDelhi-110020 Telephone - 011-41406149 E-mail - [email protected] Website - www.mcsregistrars.com

ix) Share Transfer System AllsharetransfersarehandledbyCompany’sRegistrarandShareTransferAgent.Transferofsharesin

physicalformisnormallyprocessedwithin15daysfromthedateofreceiptofdocumentscompleteinallrespect.Transferofsharesthroughdepositoriesisprocessedwithin21daysofreceiptofrequest.Asummaryofsharetransfer/transmissionofsecuritiesoftheCompanyasapprovedisplacedbeforetheStakeholders’RelationshipCommitteeandtheBoard.Ahalf-yearlycertificatefromCompanySecretaryinpracticecertifyingthatallcertificateshavebeenissuedwithinthirtydaysofthedateoflodgementofthetransfer,sub-division,consolidation,renewalasrequiredunderRegulation40oftheSEBIListingRegulationsisobtainedbytheCompanyandacopyofthesaidcertificateisfiledwiththeStockExchange.

Further, pursuant to Regulations 7(3) of the SEBI Listing Regulations, Compliance Certificate certifyingcomplianceregardingmaintenanceofsecuritiestransferfacilitieshavebeensubmittedtostockexchangeswithinstipulatedtime.

x) Distribution of shareholding as on 31st March, 2016

Shares held in physical and dematerialized formMode of Holding %ageNSDL 28.89

CDSL 60.81

Physical 10.30

xi) Dematerialization of shares and liquidity Ason31stMarch,2016,89.70%shareswereheldindematerializedformand10.30%inphysicalform.90.37%

sharesofnon-promotersholding is indematerialized form.Thesharesof theCompanyarecompulsorilytradedindematerializedform.

xii) Outstanding GDR’s/ADR’s/Warrants/convertible instruments, conversion date and their impact on equity –Nil



xiii) Plant Locations1)A-1,IndustrialArea,BazpurRoad,Kashipur,

Distt.UdhamSinghNagar,Uttarakhand.2) E-1, Sector-15, Gorakhpur Industrial

Development Area, Gorakhpur, UttarPradesh.

3)PlotNo.2,3,4&5PharmaCity,Selaqui,Dehradun,Uttarakhand.

4) BlockNo.229-230,VillageValthera,Dholka,Ahmedabad-387810,Gujarat.

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

Noida-201304, Gautam Budh Nagar, UttarPradesh

Telephone :0120-3090100, Fax :0120-3090111 Website :www.indiaglycols.com E-Mail :compliance.officer@ indiaglycols.com

xv) Managementa) Management discussion and analysis Management discussion and analysis

report forms separate part of the AnnualReport.

b) Disclosure on Risk Management TheCompanyhasfurtherstrengthenedthe

RiskManagementSystemintheCompany.TheBoardofDirectorsperiodicallyreviewsthe Risk Assessment and minimizingprocedurethereof.

xvi) Reconciliation of Share Capital ThecertificateofReconciliationofSharecapital

Auditconfirmingthatthetotalissuedcapitalofthe Company is in agreement with the totalnumberofsharesinphysicalformandthetotalnumber of dematerialized shares held withNSDLandCDSLisplacedbeforetheBoardonquarterlybasisandalsosubmittedtotheStockExchanges.

xvii) Compliance Certificate from the Statutory Auditors

Certificate from the Statutory Auditors ofthe Company, M/s Lodha & Co., CharteredAccountants, confirming compliance withthe provisions of Corporate Governanceas stipulated in SEBI Listing Regulations isannexed to thisReport and formspart of theAnnualReport.

xviii) Equity shares in the suspense account N.A.

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

During the year under review, the Companytransferred unpaid/unclaimed dividendamounting to `20.65lacsandunclaimedfixeddeposits Principals and Interest amountingto ` 1.27 lacs to Investor Education andProtectionFundpursuanttoSection205CoftheCompaniesAct,1956.



CEO/CFO CERTIFICATEThe Board of DirectorsIndia Glycols Limited

Pursuant to Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015We,theundersigneddoherebycertifyasunderinthecapacityofChairmanandManagingDirectorandChiefFinancialOfficerofIndiaGlycolsLimitedinrespectoftheyearendedon31stMarch,2016:a) Wehavereviewedfinancialstatementsandthecashflowstatementfortheperiodandthattothebestofourknowledgeandbelief: i) thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementsthatmightbe

misleading; ii) thesestatementstogetherpresentatrueandfairviewoftheCompany’saffairsandareincompliancewithexistingaccounting

standards,applicablelawsandregulations.b) Thereare, to thebestofourknowledgeandbelief,no transactionsentered intoby thecompanyduring theperiodwhichare

fraudulent,illegalorviolativeoftheCompany’sCodeofConduct.c) Weacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatwehaveevaluatedthe

effectivenessofinternalcontrolsystemsofthecompanypertainingtofinancialreportingandwehavedisclosedtotheauditorsandtheAuditCommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.

d) WehaveindicatedtotheauditorsandtheAuditCommittee: i) significantchangesininternalcontroloverfinancialreportingduringtheperiod; ii) significantchangesinaccountingpoliciesduringtheperiodandthatthesamehavebeendisclosedinthenotestothefinancial

statements;and iii) instancesofsignificantfraudofwhichwehavebecomeawareandtheinvolvementtherein,ifany,ofthemanagementoran

employeehavingasignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.

For India Glycols Limited For India Glycols Limited

Place:Noida Anand Singhal U.S. Bhartia Date :10thMay,2016 ChiefFinancialOfficer ChairmanandManagingDirector

To the Members of India Glycols Limited

DECLARATIONI,U.S.Bhartia,ChairmanandManagingDirectorofIndiaGlycolsLimiteddoherebydeclarethattheCompanyhadreceivedaffirmationfromallthemembersoftheBoardandSeniorManagementpersonnelstatingcomplianceofthecodeofconductfortheyear2015-16pursuanttotherequirementoftheRegulation26oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.

For India Glycols Limited

Place:Noida U.S. BhartiaDate :10thMay,2016 Chairman and Managing Director

AUDITOR’S COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCEToTheMembersofIndiaGlycolsLimited

Wehaveexamined thecomplianceof regulationsofCorporateGovernanceby IndiaGlycolsLimited(“Company”)for thefinancialyear ended 31stMarch 2016, as stipulated in regulations Part C of Schedule V of the SEBI (ListingObligations andDisclosureRequirements)Regulations,2015(“ListingRegulations”).

The compliance of regulations of Corporate Governance is the responsibility of the Management. Our examination was limitedto procedures and implementation thereof, adoptedby theCompany for ensuring complianceof the conditions of theCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

Inouropinionand to thebestofour informationandaccording to theexplanationsgiven tous,wecertify that theCompanyhascompliedwiththeregulationsofCorporateGovernanceasstipulatedintheabovementionedListingRegulations.

WefurtherstatethatsuchcomplianceisneitheranassuranceastofutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For LODHA & CO.CharteredAccountants

Firm’sRegistrationNo:301051E

(N.K.Lodha)Place:Noida PartnerDate :5thAugust,2016 MembershipNo.85155



TO THE MEMBERS OF INDIA GLYCOLS LIMITED

Report on the Standalone Financial StatementsWehaveauditedtheaccompanyingstandalonefinancialstatements of India Glycols Limited (“the Company”),whichcomprisetheBalanceSheetasat31st March,2016,theStatementofProfitandLoss,theCashFlowStatementfortheyearthenended,andasummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Standalone Financial StatementsTheCompany’sBoardofDirectorsisresponsibleforthematters stated inSection134(5) of theCompaniesAct,2013(“theAct”)withrespect to thepreparationof thesestandalone financial statements that give a true andfair view of the financial position, financial performanceandcashflowsof theCompany inaccordancewith theaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct, readwithRule 7 of theCompanies (Accounts)Rules,2014.Thisresponsibilityalsoincludesmaintenanceof adequate accounting records in accordancewith theprovisionsof theAct for safeguarding theassets of theCompany and for preventing and detecting frauds andotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequate internalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyand completeness of the accounting records, relevantto the preparation and presentation of the financialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s ResponsibilityOur responsibility is to express an opinion on thesestandalonefinancialstatementsbasedonouraudit.Wehave taken into account the provisions of the Act, theaccounting and auditing standards and matters which arerequiredtobe includedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditing specified underSection 143(10) of theAct.Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtainreasonable assurance about whether the financialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedures toobtainauditevidence about the amounts and the disclosures in thefinancial statements. The procedures selected dependon the auditor’s judgment, including the assessmentof the risks of material misstatement of the financialstatements, whether due to fraud or error. In makingthose risk assessments, the auditor considers internalfinancial control relevant to the Company’s preparationof thefinancialstatements thatgivea trueandfairview

in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluatingtheappropriatenessof theaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelieve that theauditevidencewehaveobtained issufficientandappropriatetoprovideabasisforourauditopiniononthefinancialstatements.

Basis for Qualified OpinionAttention is invited to:

(a) Note No. 33 (A)(i) and 33(A)(ii) of the standalone financial statements regarding Non-provisionagainst diminution in the value of investment and inter corporate deposit (including accrued interest `950.65 Lacs and total amount as stated in said note) made in a subsidiary M/S Shakumbari Sugar and Allied Industries Limited (SSAIL) and net worth of SSAIL had been fully eroded, where in the opinion of management no provision for diminution in value is necessary considering the long term nature and the intrinsic value of the assets of subsidiary company and direction issued by the Hon’ble Board for Industrial and Financial Reconstruction for preparation of revival scheme by the operating agency as stated in the said note.

Also attention is drawn for Non-provision against advance to SSAIL of amounting to 8,453.81 Lacs and against corporate guarantee extended of amounting to ` 10,845.38 Lacs (P.Y. 12,045.43 Lacs) on behalf of SSAIL for loan facility availed by SSAIL (excluding penal interest, penalty etc.) from Financial Institutions and Banks (as stated in Note no. 28 A.(iii)& 33(A)(iii)).

Our Audit Report on the standalone financialstatements for the year ended March 31, 2015 was alsoqualifiedinrespectoftheabovematters.

(b) NoteNo.33(B)ofthestandalonefinancialStatementregarding Non-provision against total exposure of amounting to ` 14,774.64 Lacs (including Investment of ` 125 Lacs) in a subsidiary, IGL Finance Limited (IGLFL),where themanagement is confidentaboutits recoverability for the reasons as stated in the said note, and our inability to comment thereon. Our Audit Report on the standalone financial statements fortheyearendedMarch31,2015wasalsoqualifiedinrespect of the above matter.

Further Attention is drawn to:Regarding matters stated under para (a) & (b) above, read withnoteno.33(C)ofthestandalonefinancialstatementsregarding reinstatement/suitably rectify the audited financialstatements,attentionisdrawn.

Net loss for the year, investments, loans & advances and reserve & surplus are without considering impact of the above which could not be ascertained or otherwise for the

Independent Auditors’ Report



reasonstatedinasabove.Ouropinionwasalsoqualifiedin respect of matters reported in para (a) & (b) above on the standalone financial statements for the year ended31st March, 2015.

Qualified OpinionIn our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the “Basis for Qualified Opinion” paragraph above, the aforesaid standalone financial statements, give the informationrequired by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of the affairs of the Company as at 31st March, 2016, and its loss anditscashflowsfortheyearendedonthatdate.

Emphasis of MattersAttentionisdrawntothefollowing:(a) Note no. 36 (a) of audited standalone financial

statements for the year ended 31st March, 2016regarding pending receipts of necessary approvalsasstatedinnoteforprovisionmadeofamountingto` 14,167.57Lacs(includingmadeinearlieryearsof`13,421.55Lacs)forspecialdiscountonaccountofsteepfallinprices.

Ouropinionisnotmodifiedinrespectofthismatter.

Report on Other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s Report)

Order, 2016 (“the Order”) issued by the CentralGovernment of India in terms of sub-section (11)ofsection143of theAct,andon thebasisofsuchchecks of the books and records of the Companyas we considered appropriate and according to the information and explanations given to us duringthe course of audit, we give in the Annexure ‘A’ astatementonthemattersspecifiedintheparagraphs3and4oftheOrder.

2. AsrequiredbySection143(3)oftheAct,wereportthat:

(a) Wehavesoughtandobtainedalltheinformationand explanations which to the best of ourknowledge and belief were necessary for thepurposesofouraudit.

(b) Except for the effect of the matter described in the BasisforQualifiedOpinionparagraphabove,inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

(c) TheBalanceSheet,theStatementofProfitandLoss,andtheCashFlowStatementdealtwithbythisReportare inagreementwith thebooksofaccount.

(d) Inouropinion,theaforesaidstandalonefinancialstatements comply with the Accounting Standards specifiedunderSection133oftheAct,readwithRule 7 of the Companies (Accounts) Rules,2014.

(e) Thematter described in the basis for qualifiedopinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

(f) On the basis of the written representationsreceived from the directors as on 31st March,2016takenonrecordbytheBoardofDirectors,none of the directors is disqualified as on 31st

March,2016frombeingappointedasadirectorintermsofSection164(2)oftheAct.

(g) Asrequiredbysection143(3)(i)oftheCompaniesAct,2013,andbasedonthecheckingofthebooksandrecordsof theCompanyasweconsideredappropriateandaccordingtotheinformationandexplanations given to us, our separate reportwith respect to the adequacy of the InternalFinancial Controls over Financial Reporting oftheCompanyandtheoperatingeffectivenessofsuchcontrolsisasperAnnexure‘B’.

(h) WithrespecttotheothermatterstobeincludedintheAuditor’sReport inaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014, in our opinion and to the best of ourinformation and according to the explanationsgiventous:

i. TheCompanyhasdisclosed the impactofpendinglitigationsonitsfinancialpositioninitsstandalonefinancialstatements–ReferNote No. 28A(i), 31, 32 & 33(A)(iii) to thestandalonefinancialstatements.

ii. The Company has made provision,as required under the applicable lawor accounting standards, for materialforeseeable losses, if any, on long termcontracts including derivative contracts.ReferNoteNo. 50(C)(b)& 50(C)(c) to thestandalonefinancialstatements.

iii. There has been no delay in transferringamounts, required tobe transferred, to theInvestorEducationandProtectionFundbytheCompany.


Firm’sRegistrationNo.301051E

(N.K.LODHA)Place:Noida PartnerDate:26thMay,2016 MembershipNo.85155



Annexure - A to the Auditors’ Report Annexure referred to in paragraph 1 under the heading “Report on other legal and regulatory requirements” of our report of even date on the Standalone Financial Statements of India Glycols Ltd. for the year ended 31st March, 20161. (a) The Company has maintained proper records

showing full particulars including quantitativedetails and situation of fixed assets except incase of certain locations where records are inprocessofupdation/compilation.

(b) As per information & explanation given to us,the fixed assets have been physically verifiedbytheManagement.Asexplainedtousthereisregularprogrammeofphysicalverificationonceinevery threeyears, inphasedmanner,whichin our opinion is reasonable having regard tothe size of theCompany and the nature of itsfixedassets.Thediscrepanciesnoticedonsuchphysicalverificationwerenotmaterial.

(c) As per the records and information andexplanationsgiventous,titledeedsofimmovableproperties(fixedassets)areheldinthenameoftheCompany(readwithfootnoteofnoteno11).

2. TheinventoryoftheCompany(exceptstockintransitwhich have been verified based on subsequentreceipt/reconciliation) has been physically verifiedby the management at reasonable intervals andthe procedures of physical verification of inventoryfollowed by the Management are reasonable andadequateinrelationtothesizeoftheCompanyandnatureof itsbusiness.Thecompany ismaintainingproper records of inventory. The discrepanciesnoticedonsuchphysicalverificationof inventoryascomparedtobookrecordswerenotmaterial.

3. The Company has not granted any loans, securedor unsecured to companies, firms, Limited LiabilityPartnershipsorotherpartiescoveredintheregistermaintainedundersection189oftheCompaniesAct,2013.Accordingly,wearenotofferinganycommentontheprovisionsofClause3(iii)(a),(b)&(c)oftheOrder.(Thisistobereadwithnoteno.45(iv)(j))

4. According to the information, explanations andrepresentations provided by the management andbaseduponaudit proceduresperformed,weareofthe opinion that in respect of loans, investments,guaranteesandsecuritytheCompanyhascomplied

withtheprovisionsoftheSection185and186oftheCompaniesAct,2013.

5. Inouropinionandaccording to the informationandexplanationsgiventous,theCompanyhascompliedwith the directives issued by the Reserve Bank ofIndia and the provisions ofSection 73 to 76 of theActoranyotherrelevantprovisionsoftheActandtherules framed there under (to the extent applicable)with regard to deposits accepted from the public.AccordingtotheinformationandexplanationgiventousnoorderhasbeenpassedbytheCompanyLawBoardorNationalCompanyLawTribunalorReserveBankof IndiaoranyCourtorotherTribunal in thisregard.

6. We have broadly reviewed the books of accountmaintained by the Company pursuant to therules specified by the Central Government for themaintenance of cost records under Section 148(1)of theAct in respect of theCompany’s products towhichthesaidrulesaremadeapplicableandareoftheopinion thatprima facie, theprescribed recordshavebeenmadeandmaintained.Wehave,however,notmadeadetailedexaminationofthesaidrecordswithaviewtodeterminewhethertheyareaccurateorcomplete.

7. (a) According to the records of the Company, theCompanyisgenerallyregularindepositingwithappropriate authorities undisputed statutory duesincludingprovidentfund,employees’stateinsurance, income tax, sales tax, service tax,dutyofcustom,dutyofexcise,valueaddedtax,cess and other material statutory dues to the appropriate authorities to the extent applicableand there are no undisputed statutory dues payable for a period of more than six monthsfrom the date they become payable as at 31st March,2016.

(b) According to the records and information andexplanations given to us, there are nomaterialduesinrespectofIncomeTaxorcessthathavenotbeendepositedwiththeappropriateauthoritiestotheextentapplicableonaccountofanydisputeandduesinrespectofDutyofCustom,ServiceTax,DutyofExcise,VAT&SalesTaxthathavenot been deposited with appropriate authorityonaccountofdisputeand the forumwhere thedisputeispendingaregivenbelow:-

Nature of Statue Nature of Dues

Amount (` In Lacs)

Period Forum

Custom CustomDuty 11.42 1992-93 U.THighCourt

CustomDuty 193.05 2004-05,2009-10 AssistantCommissionerCustoms

CustomDuty 196.85 2005-06 CESTAT

CustomDuty 763.77 2004-05,2010-11 CommissionerCustoms(Appeals)

DutyDrawback 15.86 2006-07 JointSecretary,DepartmentofRevenue

Finance Act 1994

ServiceTax 172.66 2010-11 to 2015-16 CommissionerLTU-KSP

ServiceTax 2.20 2010-11 to 2015-16 AssistantCommissionerLTU–Ahmedabad

ServiceTax 8.09 2005-06to2008-09,2010-11

Assistant/DeputyCommissionerLTU–GKP

ServiceTax 36.31 2004-08 CESTAT



Nature of Statue Nature of Dues

Amount (` In Lacs)

Period Forum

CentralExciseAct

CenvatCredit 11.75 2007-08to2012-13 CommissionerAppealLTU-KSP

CenvatCredit 7.50 2011-12to2013-14 AdditionalCommissionerLTU-KSP

CenvatCredit 15.82 2010-11to2013-14 AdditionalCommissionerLTU-GKP

CenvatCredit 8.68 2013-14,2014-15 Assistant/DeputyCommissionerLTU-GKP

CenvatCredit 36.53 2010-11to2013-14 CommissionerAppealsLTU-GKP

CenvatCredit 6.39 2010-11 to 2011-12 CommissionerAppeals,Allahabad

CenvatCredit 10.86 2011-12,2012-13 CommissionerLTU-GKP

CenvatCredit 66.97 2006-07to2008-09 CommissionerLTU-KSP

CenvatCredit 0.22 2013-14 Superintendent-LTU-GKP

ExciseDuty 19.60 2008-09to2013-14 AdditionalCommissionerLTU-KSP

ExciseDuty 922.57 2007-08to2011-12 CESTAT

ExciseDuty 4,183.63 2010–2011 CommissionerLTU-KSP

ExciseDuty 2.56 2013-14 Joint/AdditionalCommissionerLTU-KSP

ExciseDuty 53.07 2005-06to2008-09 JointSecretary,GOI,NewDelhi

UPVATAct SalesTax 8.39 2008-09,2009-10,2011-12

AdditionalCommissioner

8. Inouropinion,onthebasisofauditproceduresandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofloansorborrowingstofinancialinstitutions,banks,government (both State and Central) or dues todebentureholders.

9. On thebasisof informationandexplanationsgiventous,theCompanydidnotraiseanymoneybywayof public offer or further public offer (includingdebtinstruments) during the year and term loans raisedwere applied for the purposes for which the loanswereobtainedexceptpendingutilization,havebeentemporarilyparkedinthecurrentassets/depositswithbanks.

10. Basedontheauditprocedureperformedandonthebasisofinformationandexplanationsprovidedbythemanagement,nomaterialfraudbytheCompanyorontheCompanybyitsofficersoremployeeshasbeennoticedorreportedduringthecourseoftheaudit.

11. On the basis of records and information andexplanations made available and based on theexamination of the records of the Company,managerial remuneration which has been paid orprovidedisinaccordancewiththerequisiteapprovalsmandatedbySection197readwithScheduleVtotheAct.

12. TheCompany is not a chit fund or a nidhi /mutualbenefitfund/societyandtherefore,theprovisionsofclause3(xii)ofthesaidOrderarenotapplicabletotheCompany.

13. AspertheinformationandexplanationsandrecordsmadeavailablebythemanagementoftheCompanyandauditprocedureperformed,fortherelatedparties

transactions entered during the year, theCompanyhas complied with the provisions of Section 177and188of theAct,whereapplicable.Asexplainedandasper records / details of such relatedpartiestransactions have been disclosed in the financialstatementsasrequiredbytheapplicableaccountingstandards.

14. Accordingtotheinformationandexplanationsgiventousandbasedon theexaminationof the recordsof the Company, the Company has not made anypreferentialallotmentorprivateplacementofsharesorfully/partlyconvertibledebenturesduringtheyearintermsofprovisionsofSection42oftheAct.

15. On the basis of records made available to us andaccording to information and explanations given tousandbasedon theexaminationof the recordsofthe Company, the Company has not entered intonon-cash transactions with the directors or persons connectedwithhim.Accordingly,paragraph3(xv)oftheorderisnotapplicable.

16. TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934as the provision of section is not applicable to theCompany.



(N.K.LODHA)Place:Noida PartnerDate:26thMay,2016 MembershipNo.85155



ANNEXURE ‘B’ TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF INDIA GLYCOLS LIMITED

Report on the InternalFinancialControlsoverFinancialReporting under Clause (i) of Sub-section 3 of Section143oftheCompaniesAct,2013(“theAct”)

We have audited the internal financial controls overfinancialreportingofIndiaGlycolsLimited(“theCompany”)asofMarch31,2016inconjunctionwithourauditofthestandalonefinancial statementsof theCompany for theyearendedonthatdate.

Management’s Responsibility for Internal Financial ControlsThe Company’s management is responsible forestablishing and maintaining internal financial controlsbased on the internal control over financial reportingcriteria established by the Company considering theessential components of internal control stated in theGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting issuedby the Institute ofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternal financial controls thatwereoperatingeffectivelyfor ensuring the orderly and efficient conduct of itsbusiness,includingadherencetoCompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancial information, as required under the CompaniesAct,2013.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopinionontheCompany’sinternal financial controls over financial reporting basedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting (the “GuidanceNote”)and theStandards on Auditing, issued by ICAI and deemed tobe prescribed under section 143(10) of the CompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancial controls,bothapplicable toanauditof InternalFinancial Controls and, both issued by the Institute ofChartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtainreasonable assurance about whether adequate internalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainaudit

evidence about the adequacy of the internal financialcontrols system over financial reporting and theiroperating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining anunderstandingofinternalfinancialcontrolsoverfinancialreporting, assessing the risk that a material weaknessexists, and testing and evaluating the design andoperating effectiveness of internal control based on theassessed risk. The procedures selected depend on theauditor’s judgement, including the assessment of therisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Webelieve that theauditevidencewehaveobtained issufficientandappropriatetoprovideabasisforourauditopinion on the Company’s internal financial controlssystemoverfinancialreporting.

Meaning of Internal Financial Controls Over Financial ReportingA company’s internal financial control over financialreporting is a process designed to provide reasonableassurance regarding the reliability of financial reportingand the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles. A company’s internal financialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2) provide reasonable assurance that transactions arerecordedasnecessary topermitpreparationoffinancialstatements in accordance with generally accepted accountingprinciples,andthatreceiptsandexpendituresof the company are being made only in accordancewith authorisations ofmanagement and directors of thecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use, or disposition of the company’s assets that couldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial ReportingBecause of the inherent limitations of internal financialcontrolsoverfinancial reporting, including thepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsdue toerroror fraudmayoccurandnotbedetected.Also,projectionsofanyevaluationof the internal financial controls over financial reportingto futureperiodsaresubject to the risk that the internalfinancial control over financial reporting may becomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.



OpinionIn our opinion, read with the matters described belowunder Emphasis of Matters,the Company has, in allmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasatMarch31,2016,basedontheinternalcontroloverfinancial reporting criteria established by the Companyconsidering theessentialcomponentsof internalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

Emphasis of MatterAttentionisdrawnto:According to the information and explanations given tous,thecompanyhasadequateinternalfinancialcontrolssystem over financial reporting, however, the companyneedstofurtherstrengthenitsinternalcontrolsystemoverfinancial reportingregardingbalanceconfirmation(Read

with note no. 36) to bemade the same commensuratewithsizeandnatureofbusinessandourcommentsunder‘BasisofQualification’inourmainreport.

Our opinion is not modified in respect of matter statedabove.We have considered the weaknesses identified andreported above in determining the nature, timing, andextent of audit tests applied in our audit of the March31st, 2016 financial statements of the Company, andtheseweaknessesdonotaffectouropiniononthe2016financialstatementsoftheCompany.



(N.K.LODHA)Place:Noida PartnerDate:26.05.2016 MembershipNo.85155



BalanceSheet asat31stMarch,2016

Summaryofsignificantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao Chartered Accountants Chairman and Managing Director Executive Director FirmRegistrationno.301051E

N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerMembershipNo.85155Place :Noida,UP Place : Noida,UP Lalit Kumar SharmaDated:26thMay,2016 Dated : 28thMay,2015 Company Secretary

(`inlacs)

Particulars NoteNo. As at 31.03.2016

As at 31.03.2015

EQUITY AND LIABILITIESShareholders’ FundsShareCapital 2 3,096.15 3,096.15ReservesandSurplus 3 39,633.33 42,434.34

42,729.48 45,530.49Non-current LiabilitiesLong-termborrowings 4 14,616.56 34,458.36Deferredtaxliabilities(Net) 5 2,574.14 4,874.61OtherLong-termliabilities 6 65,394.18 16.83Long-termprovisions 7 556.63 512.71

83,141.51 39,862.51Current LiabilitiesShort-termborrowings 8 95,886.68 136,035.84Tradepayables 9 47,067.96 24,328.28Othercurrentliabilities 10 31,178.07 69,530.39Short-termprovisions 7 353.38 487.79

174,486.09 230,382.30TOTAL 300,357.08 315,775.30ASSETSNon-current AssetsFixedAssetsTangibleassets 11 104,882.18 103,138.45Intangibleassets 11 15.76 76.83Capitalwork-in-progress 11 16,748.39 14,223.23Non-currentinvestments 12 8,252.41 8,193.24Long-termloansandadvances 13 7,130.57 5,858.32Othernon-currentassets 14 4,452.95 240.78

141,482.26 131,730.85Current AssetsCurrentInvestments 12 - -Inventories 15 50,812.43 47,358.27Tradereceivables 16 37,983.91 43,756.15CashandBankbalances 17 2,962.22 14,741.32Short-termloansandadvances 18 65,852.21 77,720.66Othercurrentassets 19 1,264.05 468.05

158,874.82 184,044.45TOTAL 300,357.08 315,775.30



Summaryofsignificantaccountingpolicies 1

Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao Chartered Accountants Chairman and Managing Director Executive Director FirmRegistrationno.301051E


StatementofProfit&LossfortheperiodendedMarch31,2016 ( inlacs),exceptasotherwisestated

Particulars NoteNo. 2015-16 2014-15

Revenuefromoperations 20 232,223.03 255,741.04

Otherincome 21 675.98 4,333.98

Total Revenue 232,899.01 260,075.02

Expenses:

Costofmaterialsconsumed 22 124,328.14 138,900.24

PurchaseofStock-in-Trade 23 25,052.46 32,934.30

Changeininventoriesoffinishedgoods,work-in-progress 24 (3,099.43) 1,769.51

and Stock-in-trade

Employeebenefitexpenses 25 8,520.96 8,561.44

Finance costs 26 13,281.69 15,769.72

Depreciationandamortizationexpenses 11 5,323.82 8,116.39

Otherexpenses 27 58,730.99 59,892.95

Total Expenses 232,138.63 265,944.55

Profit/ (Loss) before exceptional items and tax 760.38 (5,869.53)

ExceptionalItems(Net) 47 6,007.00 5,795.51

Profit/ (Loss) before tax (5,246.62) (11,665.04)

TaxExpense:

-CurrentTax - -

-DeferredtaxCharged/(Credit) (2,240.14) (5,531.16)

-Taxforearlieryears (0.26) -

-MinimumAlternateTax(Credit)entitlement 409.79 -

Profit/ (Loss) for the period (3,416.01) (6,133.88)

Earning per Equity share basic/ diluted (in Rs.) (11.03) (19.81)



CashFlowStatement fortheyearended31stMarch,2016 (` inlacs)

2015-16 2014-15A Cash Flow from Operating Activities NetProfit/(Loss)BeforeTax (5,246.62) (11,665.04) AdjustmentsFor: Depreciation 5,323.82 8,116.39 (Profit)/LossonSaleofAssets 12.10 (5,197.77) UnrealisedForeignExchangeFluctuation(Gain)/Loss 245.19 94.53 AmortisationofForeignCurrencyMonetaryItem

TranslationDifference857.60 2,355.19

(Profit)/LossonSaleofNon-CurrentInvestments (295.00) (684.74) (Profit)/LossonSaleofCurrentInvestments - 0.63 InsuranceGainRecoverable - (2,407.00) BadDebtsW/Off&ProvisionforDoubtfulDebts&Advances 1,340.02 6,152.12 ProvisionNoLongerRequiredWrittenBack (676.10) (212.40) FinanceCosts 13,912.59 17,245.90 Interest/DividendIncome (959.15) 19,761.07 (2,058.52) 23,404.33 Operating Profit/ (Loss) before Working Capital Changes 14,514.45 11,739.29 AdjustmentsFor: (Increase)/DecreaseinTrade&OtherReceivables 21,001.65 (12,990.18) (Increase)/DecreaseinInventories (3,454.16) 7,360.95 Increase/(Decrease)inTrade&OtherPayables 90,621.66 108,169.15 (21,276.52) (26,905.75) Cash Generated from / (Used in) Operations 122,683.60 (15,166.46) IncomeTaxPaid(Net) (192.84) (256.67) Net Cash flow from / (Used in) Operating Activities 122,490.76 (15,423.13)B Cash Flow from Investing Activities PurchaseofFixedAssets (9,459.88) (6,692.64) SaleofFixedAssets 59.00 18,925.77 Interest/Dividendreceived 1,232.01 1,913.41 ICDsgiven (596.74) (1,451.30) ICDsreceivedback 611.74 4,572.30 Investmentsinsharesofsubsidiaries/jointventure (64.17) (2,507.83) Saleofnon-currentinvestments 300.00 693.85 Saleofcurrentinvestments - 9.17 Net Cash flow from / (Used in) Investing Activities (7,918.04) 15,462.73C Cash Flow from Financing Activities ProceedsfromGovtsubsidy 30.00 - ProceedsfromBorrowings 12,433.00 78,105.18 RepaymentofBorrowings (114,342.04) (59,947.69) FinanceCosts (14,333.25) (17,884.28) DividendsPaid(IncludingCorporateDividendTax) (21.82) (371.62) Net Cash flow from / (Used in) Financing Activities (116,234.11) (98.41) Net Increase/(Decrease) in Cash & Cash Equivalents [A+B+C] (1,661.39) (58.81) OpeningCash&CashEquivalent(refernote17) 2,029.01 2,087.82 ClosingCash&CashEquivalent(refernote17) 367.62 2,029.01Theaccompanyingnotesareanintegralpartofthefinancialstatements.AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao Chartered Accountants Chairman and Managing Director Executive Director FirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerMembershipNo.85155Place :Noida,UP Place : Noida,UP Lalit Kumar SharmaDated:26thMay,2016 Dated : 28thMay,2015 Company Secretary



1. ACCOUNTING POLICIES

A. ACCOUNTING CONVENTION ThefinancialstatementsarepreparedinaccordancewiththeIndianGenerallyAcceptedAccountingPrinciples

(GAAP)underthehistoricalcostconventionontheaccrualbasis.GAAPcomprisesmandatoryaccountingstandardsspecifiedundersection133oftheCompaniesAct2013(‘Act’)readwithRule7oftheCompany(Accounts)Rules2014andrelevantprovisionoftheAct.Accountingpolicieshasbeenconsistentlyapplied.

B. 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 economicbenefitwillflowtothecompanyandtherevenuecanbereliablymeasuredwiththereasonablecertaintyofitsrecovery.

(c) RevenueinrespectofExportbenefitsarerecognizedonpostexportbasisattherateatwhichtheentitlementaccruesandisincludedintheturnover.

C. FIXED ASSETS AND DEPRECIATION (a) (i) Alltangiblefixedassetsarestatedattheirhistoricalcostlessaccumulateddepreciation.Leasehold

landisamortisedovertheperiodoflease.Depreciationonfixedassets,hasbeenprovidedusingstraightlinemethod over their useful lives prescribed under schedule II of theCompanies Act 2013 (exceptonPlant&MachineryofE.O.DerivativewheredepreciationisprovidedonW.D.V.basis).Howeverinrespectofcertainplant&machinerydepreciationisprovidedasperusefullivesasassessedbytechnicalvaluerrangingfrom30–40years.Depreciationonadditions/disposalsisprovidedwithreferencetothemonthofaddition/disposal.

(ii) CertainPlantandMachineryhavebeenconsideredascontinuousprocessplantasprovidedinScheduleIIoftheCompanyActontechnicalevaluation.

(iii)DepreciationonincrementalcostarisingonexchangedifferenceisamortizedovertheremainingusefullifeofAssets.

(b) Intangibleassets:Computersoftwareareaccountedforat theircostofacquisitionandamortisedover theestimatedusefullifei.e.notexceedingsixyears.

D. EXPENDITURE DURING CONSTRUCTION Expenditureduringconstructionperiodisbeingincludedundercapitalwork-inprogressandthesameisallocated

tofixedassetsoncompletionofinstallation/construction.

E. INVESTMENTS Longterminvestmentsarestatedatcost.Whenthereisadeclineotherthantemporaryintheirvalue,thecarrying

amountisreducedonindividualinvestmentbasisandischargedtotheStatementofProfit&Loss. CurrentInvestmentsarevaluedatlowerofcostorfairvalue.

F. VALUATION OF INVENTORIES Inventoriesarevalued‘atlowerofcostornetrealisablevalue’exceptstockofresidualproductsandscrapwhich

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

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

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

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

H. EMPLOYEES BENEFITS (a) Defined Contribution Plan: Employeebenefits in theformofProvidentFund(withGovernmentAuthorities)areconsideredasdefined

contributionplanandthecontributionsarechargedtotheStatementofProfit&Lossoftheyearwhenthecontributionstotherespectivefundsaredue.

NotestotheAccounts



(b) Defined Benefit Plan: Retirementbenefits in the formofGratuityandLong termcompensated leavesareconsideredasdefined

benefitobligationsandareprovidedforonthebasisofanactuarialvaluation,usingtheprojectedunitcreditmethod,asatthedateoftheBalanceSheet.

Actuarialgain/losses,ifany,areimmediatelyrecognizedintheStatementofProfit&Loss.(c) Othershorttermabsencesareprovidedbasedonpastexperienceofleaveavailed.

I. GOVERNMENT GRANTS GrantsinthenatureofProjectCapitalSubsidyarecreditedtoCapitalReserves.OtherGovernmentgrantsare

deductedfromtherelatedexpenses.

J. BORROWING COST Interestandothercostsinconnectionwiththeborrowingoffundsarecapitalizeduptothedatewhensuchqualifying

assetsarereadyforitsintendeduseandotherborrowingcostsarechargedtoStatementofProfit&Loss.Ancillarycostincurredinconnectionwiththeborrowingsisamortizedoverthetermofloan.

K. PROVISION FOR CURRENT TAX AND DEFERRED TAX Provisionforcurrenttaxhasbeenmadeonthebasisofestimatedtaxableincomecomputedinaccordancewith

theprovisionsofIncomeTaxAct,1961. DeferredTax resulting fromall timingdifferencesbetweenbookprofitandprofitasper IncomeTaxAct,1961

isaccountedfor,attheenacted/substantiallyenactedrateofTax,totheextentthatthetimingdifferencesareexpectedtocrystallize.Deferredtaxassetsarerecognizedonlytotheextentthatthereisareasonable/virtualcertainty that sufficient future taxable profits will be available against which such deferred tax assets can berealized.

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

impairment loss.Post impairment, depreciation is providedon the revised carrying valueof theasset over itsremainingusefullife.

M. USE OF ESTIMATES AND ASSUMPTIONS Thepresentationoffinancialstatementsrequiresestimatesandassumptionstobemadethataffectthereported

amountofassetsandliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultandtheestimatesarerecognizedintheperiodinwhichtheresultsareknown/materialized.

N. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degreeof estimation inmeasurement are recognizedwhen there is a present

obligationasaresultofpasteventsanditisprobablethattherewillbeanoutflowofresources.Contingentliabilitiesarenotrecognizedbutaredisclosedinthenotes.Contingentassetsareneitherrecognizednordisclosedinthefinancialstatements.

Particulars

As at 31.03.2016

As at 31.03.2015

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)EquitySharesof 10/-eachfullypaidup 3,096.15 3,096.15

3,096.15 3,096.15

a) Terms/rights attached to equity shares:TheCompanyhasonlyoneclassofsharesreferredtoasequityshareshavingaparvalueofRs.10/-pershare.Eachholderofequitysharesisentitledtoonevotepershare.

IntheeventofliquidationoftheCompany,theholdersofequityshareswillbeentitledtoreceiveremainingassetsoftheCompany,afterdistributionofallpreferentialamounts.Thedistributionwillbeinproportiontothenumberofequitysharesheldbytheshareholders.

2. SHARE CAPITAL

( ` in Lacs), except as otherwise stated



Notes to the Accounts

b) Details of shareholders holding more than 5%shares in the companyName of Shareholder 31.03.2016

No’s31.03.2015

No’s

KashipurHoldingsLimited 10,352,406 10,287,486

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 periodParticulars 31.03.2016

No’s31.03.2015

No’s

Sharesoutstandingasatthebeginningoftheyear 30,961,500 30,961,500

Additions during the year - -

Deletionsduringtheyear - -

Sharesoutstandingasattheendoftheyear 30,961,500 30,961,500

d) Inlast5yearstherewasnoBonusIssue,buybackand/orissueofsharesotherforcashconsideration.

3. RESERVES AND SURPLUS

( ` in Lacs)

As at01.04.2015

Additions

Deductions

As at31.03.2016

CapitalReserve 463.25 30.00* - 493.25 GeneralReserve# 10,714.15 - 114.01 10,600.14 SecurityPremium 3,958.36 - - 3,958.36 ReserveforContingencies 200.00 - - 200.00 SurplusinStatementofProfit&Loss{Referfootnote(a)] 27,797.59 - 3,416.01 24,381.58 Sub Total (a) 43,133.35 30.00 3,530.02 39,633.33 ForeignCurrencyMonetaryItemTranslationDifference(DebitBalance)

(699.01) (158.59) (857.60) -

Sub Total (b) (699.01) (158.59) (857.60) -

Total (a) + (b) 42,434.34 (128.59) 2,672.42 39,633.33 Previousyear 47,461.38 (778.50) 4,248.54 42,434.34

(a) Detail of Surplus in the Statement of Profit & Loss March 31, 2016 March31,2015

Openingbalance 27,797.59 33,931.47Add:NetProfit/(Loss)aftertaxtransferredfromStatementofProfit&Loss (3,416.01) (6,133.88) Net Surplus in the Statement of Profit & Loss 24,381.58 27,797.59

24,381.58 27,797.59

*RepresentprojectCapitalsubsidyreceivedduringtheyear.

#InviewofadoptionofComponenetAccountingasprescribedinCompaniesAct2013,depreciationoncomponentwhoseusefullifeexpiredpriorto01stApril2015haschargedtoGeneralReserve(netofdeferredtax`60.34Lacs)



4. LONG TERM BORROWINGS

( ` in Lacs)


Non-CurrentPortion CurrentMaturities

As at 31.03.2016

As at 31.03.2015

As at 31.03.2016

As at 31.03.2015

SECURED LOANSRupee Term Loans

fromBanks 10,600.33 26,198.59 1,669.43 27,300.22

otherthanBanks 782.74 508.75 119.34 100.00

ForeignCurrencyTermLoansfromBanks 3,233.49 7,751.02 - 15,919.84

14,616.56 34,458.36 1,788.77 43,320.06

Less:Amountdisclosedunderthehead“OtherCurrentLiabilities”(NoteNo.10) 1,788.77 43,320.06

14,616.56 34,458.36 - -

Notes:

1 TheTermLoansinter-se,aresecured/tobesecuredbymortgageofallimmovablepropertiesoftheCompanybothpresentandfutureandhypothecationofallmovablepropertiesof theCompany(saveandexceptbookdebts) includingmovablemachinery,machineryspares, toolsandaccessories,bothpresentandfuturesubjecttopriorchargescreatedand/ortobecreatedinfavourofthebankersoftheCompanyonstocks,bookdebtsandotherspecifiedmovablepropertiesforworkingcapitalrequirements/BuyersCredit.

2 RupeeTermLoansincludesloansfromBanksof`28.77Lacs(PreviousYear`46.19Lacs)andloansfromothersof`56.43Lacs(PreviousYear`Nil)securedbyhypothecationofMotorVehiclespurchasedthereunderwhichisrepayableondifferentdates.Further,RupeeTermLoansfromothersincludes`845.65Lacs(PreviousYear`608.75Lacs)securedagainstbankguarantee.(readwithpara22&23)

3 TermLoanfrombankof`511.00Lacs(PreviousYear`4,654.47lacs),isrepayable1installmentof`511.00lacsinMay2017.

4 TermLoanfrombankof`3,336.00Lacs(PreviousYear`10,000.00Lacs),isrepayablein3quarterlyinstallmentsof`833.00LacscommencingfromApril2017andoneinstallmentof`837.00LacsinJanuary2018.

5 TermLoanfrombankof`Nil(PreviousYear`2,499.60Lacs).




9 TermLoanfrombankof`Nil(PreviousYear`1,951.00lacs).





14 TermLoanfrombankof`364.00Lacs(PreviousYear`3,431.00Lacs),isrepayablein1installmentof`118.85LacsinJune2017and1installmentof`245.15LacsinSep2017.

15 TermLoanfrombankof`778.99Lacs(PreviousYear` 4,374.98Lacs),isrepayablein1installmentinJune2016.

16 TermLoan frombankof` 1,626.00Lacs (PreviousYear` 2,551.00Lacs), is repayable in 1quarterly installment of` 137.92Lacsand7equal quarterlyinstallmentscommencingof`212.58LacseachcommencingfromSep.2016.

17 TermLoanfrombankof`3,125.00Lacs(PreviousYear`8,750.00Lacs),isrepayablein5equalquarterlyinstallmentsis` 625.00LacseachcommencingfromJuly2017.

18 TermLoanfrombankof`Nil(PreviousYear`3,923.65Lacs,USD62.77Lacs).


20 TermLoanfrombankof 3,233.49Lacs(USD48.80Lacs)(PreviousYear 10,246.44Lacs(USD170.25Lacs),isrepayablein11monthlyinstallments,8equalmonthlyinstallmentsof`271.67Lacs,3equalmonthlyinstallmentsof`353.38LacscommencingfromMay2017.

21 TermLoanfrombankof`2,500.00Lacs(PreviousYearRs.Nil),isrepayablein8equalquarterlyinstallmentsis`312.50LacseachcommencingfromFeb2017.

22 TermLoanfromDBTBio-pharma`250.00Lacs(PreviousYear`350.00Lacs)isrepayablein5equalhalfyearlyinstallment.

23 TermLoanfromDBTBio-pharma`595.65Lacs(PreviousYear`258.75)isrepayablein10equalhalfyearlyinstallmentaftercompletionoftheproject.



5. DEFERRED TAX LIABILITIES (NET)

( ` in Lacs)


6. OTHER LONG TERM LIABILITIES

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

AdvancefromCustomers* 65,377.68 -

Security deposits 16.50 16.83

65,394.18 16.83

*Longtermexportadvanceof`72,641.64Lacsreceivedfromacustomerwithsupplyscheduleoverperiodof10years.ExportadvancehasbeensecuredbyGuaranteegivenbyStateBankof India (SBI) to thecustomer,whileotherexportperformancebankgurantee(EPBG)memberbankshavegivencounterguranteeinfavorofSBI.SuchguaranteearesecuredbyfirstchargeonthefixedassetsandsecondchargeonthecurrentassetsoftheCompanyonparipassubasis(noteno39).

7. PROVISIONS

( ` in Lacs)Long - Term Short - TermAs at

31.03.2016As at

31.03.2015As at

31.03.2016As at

31.03.2015Provision for employee benefits

ProvisionforGratuity - - 167.42 279.59

ProvisionforLeaveEncashment 556.63 512.71 185.96 190.95

556.63 512.71 353.38 470.54

Others:

Provision for Fringe Benefit Tax (Net of advance tax`Nil,PreviousYear`38.65Lacs)

- - - 0.26

ProvisionforWealthTax - - - 16.99

- - - 17.25

556.63 512.71 353.38 487.79

As at 31.03.2016

As at 31.03.2015

PursuanttotheAccountingStandardon“AccountingfortaxesonIncome“(AS-22)deferredtaxliability/assetsareas:Deferred Tax Assets :-AmountcoveredU/s43B 368.70 377.97Provisionfordoubtfuldebts/advances 5,068.55 4,672.63UnabsorbedDepreciation 10,189.80 7,187.90BusinessLoss 569.82 569.82Others 323.75 236.19Gross Deferred tax Assets 16,520.62 13,044.51Deferred Tax Liabilities :-Accelerated depreciation 18,086.63 17,279.92Others 1,008.13 639.20Gross Deferred tax Liability 19,094.76 17,919.12Net Deferred Tax Liability 2,574.14 4,874.61



As at 31.03.2016

As at 31.03.2015

SECURED LOANS

LoansrepayableondemandfromBanks:

BuyersImportCredit* 34,949.63 48,713.30

WorkingCapitalLoans* 53,854.91 80,792.81

88,804.54 129,506.11

UNSECURED LOANS

ShortTermLoansfromBanks 7,082.14 6,529.73

7,082.14 6,529.73

95,886.68 136,035.84

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

8. SHORT TERM BORROWINGS

( ` in Lacs)


9. TRADE PAYABLE

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

PayabletoMicroEnterprisesandSmallEnterprises 36.21 3.49

PayabletoOthers 47,031.75 24,324.79

47,067.96 24,328.28

10. OTHER CURRENT LIABILITIES

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

Currentmaturitiesoflongtermborrowings(NoteNo4) 1,788.77 43,320.06

Interestaccruedbutnotdueonborrowings 224.15 342.41

Duties,taxesandotherstatutorydues 1,911.49 1,609.69

CapitalPayables 2,059.02 1,873.71

AdvancefromCustomers 6,947.92 5,250.03

Retention money 158.51 183.64

Expensespayable(IncludingMTMonderivativecontracts) 3,006.91 1,765.06

OtherPayables(refernote36(a)) 14,989.36 15,069.43

Investoreducation&protectionfundshallbecreditedbythefollowingamountswhendue:

(i)UnclaimedDividends 90.09 111.91

(ii)Unclaimedmatureddeposits 1.32 3.36

(iii)Unclaimedinterestonabove(ii) 0.53 1.09

31,178.07 69,530.39




11. Fixed Assets

( ` in Lacs)

Notes:

*(i)AdditiontoPlantandMachineryincludesforeignexchangefluctuationdifferencearisingunderAS-11(Theeffectofchangesinforeignexchange

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

Companies(AccountingStandards)(SecondAmendment)Rules2011.

*(ii)Includescapitalisationof:

(a)Financecost:Plant&Machiery`138.95Lacs(PreviousYear`651.82Lacs).

(b)Exchangedifference:PlantandMachineryincludesCWIP`374.45Lacs(PreviousYear`993.82Lacs).(Unamortisedamount`4,127.32Lacs

(PreviousYear`3,880.59Lacs)

** includesdepreciationchargedtoGeneralreserve`174.35Lacs(Previousyear` 718.52Lacs),refernoteno38.AlsoreferNoteNo-37regarding

impactofrevisionofusefullife.

# Grossblockincludes`137.30Lacs(PreviousYear`117.95Lacs)securedbyhypothecationagainstloan

@ GrossBlockincludes`79.77LacsPendingtransferoftitleinthenameoftheCompany.

Description Gross Carrying Amount Depreciation/ Amortization Net Carrying Amount

As at 01.04.2015

Addi-tions*

Sales/Other

Adjust-ments

As at March31,

2016

As at 01.04.2015

For the year**

Sales/Other

Adjust-ments

As at 31.03.2016

As at 31.03.2016

As at 31.03.2015

Tangible assets

FreeholdLand@ 1,068.67 - - 1,068.67 - - - - 1,068.67 1,068.67

Leasehold Land 836.53 - - 836.53 104.04 10.19 - 114.23 722.30 732.49

Buildings@ 7,796.41 318.43 - 8,114.84 2,066.79 231.19 - 2,297.98 5,816.86 5,729.62

PlantandMachinery 166,529.85 5,648.67 - 172,178.52 72,525.02 4,809.45 - 77,334.47 94,844.05 94,004.83

OfficeEquipment 1,744.04 69.03 13.81 1,799.26 1,342.57 92.76 11.09 1,424.24 375.02 401.47

FurnitureandFixtures 1,357.84 1,113.29 26.86 2,444.27 597.60 200.68 22.14 776.14 1,668.13 760.24

Vehicles# 883.58 102.26 136.10 849.74 442.45 92.58 72.44 462.59 387.15 441.13

Total (A) 180,216.92 7,251.68 176.77 187,291.83 77,078.47 5,436.85 105.67 82,409.65 104,882.18 103,138.45

PreviousYear 189,199.95 6,948.31 15,931.34 180,216.92 70,639.14 8,643.08 2,203.75 77,078.47 103,138.45

Intangible assets

Computersoftware 852.94 0.25 - 853.19 776.11 61.32 - 837.43 15.76 76.83

Total (B) 852.94 0.25 - 853.19 776.11 61.32 - 837.43 15.76 76.83

PreviousYear 814.15 38.79 - 852.94 584.28 191.83 - 776.11 76.83

Capitalwork-in-progress 16,748.39 14,223.23



12. INVESTMENTS



Particulars

NominalValue

As at 31.03.2016

As at 31.03.2015

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.

R` 10 550.00 550.00

Less:Provisionfordiminuition 425.00 125.00 425.00 125.00

100,000 (Previous Year 100,000) Equity Shares of IGLCHEMInternationalPTELtd.,Singapore

SGD1 27.41 27.41

200,000** (Previous Year 100,000) Equity Shares of IGLCHEMInternationalUSALLC

USD1 127.00 62.83

50,112,100*(PreviousYear50,112,100)EquitySharesofShakumbariSugar&AlliedIndustriesLtd.

` 10 4,427.50 4,427.50

Nil** (Previous Year 50,000 ) Equity Shares of IGLInfrastructurePrivateLtd.

` 10 - 5.00

Unquoted, Fully paid up - Joint Venture

24,45,000 (Previous Year 24,45,000) Equity Shares ofKashipurInfrastructureandFreightTerminalPvtLtd

` 10 2,440.50 2,440.50

7,147.41 7,088.24

Quoted, fully paid up - Others

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

105.00 105.00

7,252.41 7,193.24

Investment in Preference Share (Unquoted, fully paid up) - Subsidiary Company10,000,000* (Previous Year 10,000,000) 10%CumulativeRedeemable Preference Shares of Shakumbari Sugar &AlliedIndustriesLtd.

` 10 1,000.00 1,000.00

1,000.00 1,000.00

Total Non - Current investments 8,252.41 8,193.24

Aggregatedbookvalueofunquotedinvestment 8,147.41 8,088.24

Aggregatedbookvalueofquotedinvestment 105.00 105.00

Marketvalueofquotedinvestments 146.90 150.07

Aggregate provision made for diminuition in value ofinvestments

425.00 425.00

*ReferNoteno33tofinancialstatements.**ReferNoteno34tofinancialstatements.



13. LONG TERM LOANS AND ADVANCES(Unsecured,consideredgoodunlessstatedotherwise)

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

CapitalAdvances 2,638.94 2,094.55

SecurityDeposits@ 3,371.41 2,701.14

InterCorporateDeposits# 964.48 979.48

OtherLoans&advances* 155.74 83.15

7,130.57 5,858.32

*Prepaidexpensesandloanstoemployees

#Includesloanstorelatedparties`964.48lacs(Previousyear`979.48lacs)

@ Includes`1563.85 lacs (PreviousYear`980.00Lacs)securitydeposit todirector,privatecompanies inwhichdirector/directorsofcompanyisdirectorandarealsorelatedparties.

14. OTHER NON-CURRENT ASSETS

( ` in Lacs)

As at

31.03.2016As at

31.03.2015

Bankbalanceindepositaccount*(ReferNoteNo.17) 4,023.52 8.76

Interestreceivable 235.41 -

Others

Upfrontfee,processingcharges,etcamortisedovertenureofloans 194.02 232.02

4,452.95 240.78

*Pledgedwithbank/GovernmentAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowingsmaturingafter12months



15. INVENTORIES (At lower of cost or net realisable value)(Astaken,valuedandcertifiedbythemanagement)

( ` in Lacs)


As at 31.03.2016

As at 31.03.2015

RawMaterials* 16,673.98 16,994.96

Work-in-Process 6,443.36 4,448.56

FinishedGoods** 11,060.03 9,774.55

Stores and Spares 16,539.43 16,108.99

ResidueProduct 64.76 2.21

Scrap 3.24 3.26

Loose Tools 27.63 25.74

50,812.43 47,358.27

*Includesintransit`5,563.41Lacs(PreviousYear` 923.16)**Includesintransit` 264.65Lacs(PreviousYear`20.83Lacs)

16. TRADE RECEIVABLES(Unsecured,consideredgoodunlessstatedotherwise)

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

(a)Outstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment

-Consideredgood(ReferNoteNo.36(a)) 15,250.73 14,117.32

-Doubtful 303.43 33.43

(b)Other(Consideredgood) 22,733.18 29,638.83

38,287.34 43,789.58

Less:ProvisionforDoubtfuldebts 303.43 33.43

37,983.91 43,756.15




17. CASH AND BANK BALANCES

( ` in Lacs)As at

31.03.2016As at

31.03.2015(a) Cash and Cash equivalents (i)CashonHand 52.56 62.59 (ii)BalancewithBanks -OnCurrentAccounts 315.06 1,966.42

367.62 2,029.01(b) Other bank balances -InFixedDepositAccounts*-Current 2,504.51 12,600.40 -InFixedDepositAccounts*-Noncurrent 4,023.52 8.76 -OnDividendAccounts 90.09 111.91

6,985.74 14,750.08 Less:AmountdisclosedunderOtherNonCurrentAssets(NoteNo14) 4,023.52 8.76

2,962.22 14,741.32

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowings.

18. SHORT TERM LOANS AND ADVANCES (Unsecured,consideredgoodunlessstatedotherwise)

( ` in Lacs)As at

31.03.2016As at

31.03.2015DepositswithNonBankingFinancialInstitutions 1,429.00 1,429.00

InterCorporateDeposits# 14,649.64 14,649.64

Interestreceivable 1,121.33 1,629.60

(Includesreceivablefromrelatedparties 950.65Lacs(PreviousYear 950.65Lacs)ExportIncentivereceivable 2,254.48 1,643.13

BalancewithExciseandOtherAuthorities 15,009.82 9,107.89

DepositswithGovernmentDepartments&Others 150.14 161.56

MATCreditEntitlements 7,665.95 8,075.74

AdvanceIncomeTax/Taxdeductedatsource(netofincometaxprovisionof 4,076.08Lacs,PreviousYear`4,076.08Lacs)

1,089.86 897.02

ReceivablefromsaleofRentalbusinessdivision - 18,420.00

Prepaidexpenses 5,096.73 1,578.60

OtherAdvances:

Advancesrecoverableincashorinkindorforvaluetobereceived*

17,385.26 20,128.49

Doubtfuladvances/loans 370.61 46.61

17,755.87 20,175.09

Less:Provisionfordoubtfuladvances/loans (370.61) 17,385.26 (46.61) 20,128.48

65,852.21 77,720.66

*Includesbusinessadvanceof`8,453.81Lacs(PreviousYear` 8,453.81Lacs)torelatedparties. #Depositwitharelatedparty.




19. OTHER CURRENT ASSETS

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

Upfrontfee,processingcharges,etcamortisedovertenureofloans 1,264.05 468.05

1,264.05 468.05

TheCompanyhasduringtheyearamortisedtheancillarycostincurredinconnectionwiththeborrowingoverthetermoftheloan.

20. REVENUE FROM OPERATIONS

( ` in Lacs)

2015-16 2014-15

Sales of Products

Glycols 69,994.05 70,599.53

E.O.Derivatives 97,448.96 110,937.14

GuarGumPowderandderivatives 2,406.98 11,837.37

EthylAlcohol(Potable) 115,020.19 69,111.92

Industrial Gases 3,834.03 3,758.33

Saleoftradedgoods

ChemicalandoilProducts 24,687.38 32,279.89

ExportIncentivereceivable 1,877.17 1,294.92

Others 7,924.59 7,276.54

323,193.35 307,095.64

Less:ExciseDuty 95,147.10 57,022.11

228,046.25 250,073.53

Sales of Service

Rent - 1,407.24

Others 743.14 669.88

743.14 2,077.12

Other Operating Revenue

Provisionnolongerrequiredwrittenback/Sundrybalanceswrittenback 676.10 212.40

MiscellaneousIncome 2,757.54 3,377.99

3,433.64 3,590.39

Total Revenue from operations 232,223.03 255,741.04




21. OTHER INCOME

( ` in Lacs)

2015-16 2014-15

Interest Income 326.66 574.38

DividendonLongtermInvestment 1.59 7.96

Rent 33.41 -

InsuranceClaimRecoverable - 2,407.00

GainonsettlementwithJVpartner - 621.50

ProfitonsaleofNon-CurrentInvestment 295.00 684.74

ProfitonsaleofFixedAssets 19.32 38.40

675.98 4,333.98

22. COST OF MATERIALS CONSUMED

( ` in Lacs)

2015-16 2014-15

RawMaterialsconsumed

i)Molasses 25,648.83 34,575.98

ii)ChainStarters 11,806.99 18,459.09

iii)SpecialDenaturedSpirit 57,905.38 53,827.23

iv)Guarsplit,Guarseeds,etc. 1,587.12 9,154.20

v)ProductionChemicals&Others 12,370.79 10,731.98

vi)PackingMaterial 15,009.03 12,151.76

Total 124,328.14 138,900.24

Consumption of Imported and Indigenous Raw Materials

2015-16 2014-15

% age Amount %age Amount

Imported 46.02 57,220.60 29.50 40,972.19

Indigeneous 53.98 67,107.54 70.50 97,928.05

100.00 124,328.14 100.00 138,900.24

23. PURCHASE OF STOCK-IN-TRADE

( ` in Lacs)

2015-16 2014-15

ChemicalandOilProducts 25,052.46 32,934.30

25,052.46 32,934.30




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

( ` in Lacs)

2015-16 2014-15

CLOSING STOCK

Finished Goods

- Glycols 3,456.21 1,982.04

-E.O.Derivatives 7,114.20 7,084.24

-EthylAlcohol(Potable) 293.18 356.63

-GuarGumPowderandderivatives 37.37 58.60

-GuarChuri 0.50 0.41

- Industrial Gases 23.23 24.72

-HerbalProducts 135.34 267.92

Total Finished Goods 11,060.03 9,774.56

Work-in-Process (Note @ below) 6,443.36 4,448.56

Residue Product 64.76 2.21

17,568.15 14,225.33

OPENING STOCK

Finished Goods

- Glycols 1,982.04 2,586.72

-E.O.Derivatives 7,084.24 7,238.13


-GuarGumPowderandderivatives 58.60 1,232.94





Work-in-Process (Note @ below) 4,448.56 4,401.57


14,225.33 16,107.98

Less:DifferentialExciseDutyprovidedonStocks. 243.39 (113.14)

Changeininventoriesoffinishedgoods,work-in-progressandStock-in-trade (3,099.43) 1,769.51

Note @

Work-in-Process 31.03.2016 31.03.2015

Alcohol 746.96 794.02

EO 64.71 50.13

Guar Gum 135.28 120.20

RS/ENA 835.07 467.56

Others 4,661.34 3,016.65

6,443.36 4,448.56



Notes to the Accounts25. EMPLOYEE BENEFIT EXPENSES

( ` in Lacs)

2015-16 2014-15

Salaries,Wages,Allowances,etc. 7,195.93 7,241.06

ContributiontoProvidentandotherFunds 575.82 558.70

Employees'WelfareandotherBenefits 749.21 761.68

8,520.96 8,561.44

26. FINANCE COSTS

( ` in Lacs)

2015-16 2014-15

InterestonFixedLoans 3,697.18 8,350.45

OtherInterest 6,696.16 6,254.16

OtherBorrowingCost

FinancialCharges 3,519.25 2,641.29

13,912.59 17,245.90

Less:InterestReceivedontemporarydeposits 630.90 1,476.18

13,281.69 15,769.72

27. OTHER EXPENSES

( ` in Lacs)

2015-16 2014-15

Stores and spares consumed 6,258.24 6,071.32

PowerandFuel 30,145.52 33,528.78

RepairsandMaintenance

-Buildings 330.14 485.38

-PlantandMachinery 1,828.46 1,911.99

-Others 611.74 467.18

Rent 694.23 111.53

RatesandTaxes 1,240.80 1,265.93

TravellingandConveyance 859.26 927.01

Insurance 727.86 500.43

Directors'sittingFee 11.62 12.20

Donation - 31.40

CommissiontoSellingagents 1,970.17 1,283.08

Freight forwarding and others [(Net of recoveryfromcustomers/provisionwrittenback`1,004.46Lacs,(PreviousYear` 1003.42Lacs)]

6,998.48 7,734.02



Notes to the Accounts27. OTHER EXPENSES

( ` in Lacs)

2015-16 2014-15

LossonsaleofCurrentInvestment - 0.63

CommodityDerivativeLoss - 21.59

Baddebtswrittenoff 3.00

Less:Provisionfordoubtfuldebtswrittenback - 3.00 -

Provisionfordoubtfuldebtsandadvances 594.00 -

LossonSale/DiscardofFixedAssets 31.42 34.89

Legal&Professional 2,563.00 610.78

Amortisationof ForeignCurrencyMonetaryItemTransactionDifference

857.60 2,355.19

WealthTax - 26.36

Printing&Stationery,Postage,Telephone,securityandotherMiscellaneousExpenses

3,008.45 2,513.26

58,730.99 59,892.95

Consumption of Imported and Indigenous Stores and spares

2015-16 2014-15

% age Amount %age Amount

Imported 38.09 2,383.95 37.71 2,289.40

Indigenous 61.91 3,874.29 62.29 3,781.92

100.00 6,258.24 100.00 6,071.32

28. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR (AS CERTIFIED BY THE MANAGEMENT):-

(i) Inrespectof:- ( ` in Lacs)

Particulars As onMarch 31, 2016

As onMarch 31, 2015

CentralExcise/StateExcise@ 5,569.18 22,644.34Customs 1,235.12 1,025.70ServiceTax 245.62 70.76SalesTax 9.84 18.24Othermatters 278.37 958.75

Total 7,338.14 24,717.79

@ Excluding show cause notices (SCNs),wheremanagement is confident that onmerits SCNswill bedroppedandalsoaslegallyadvisedpossibilityofanoutflowoffundisremote

(ii) Billsdiscountedwithbanks`1,703.13Lacs(PreviousYear:`3,829.60Lacs).(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a

subsidiarycompany)amountingto`10,845.38Lacs(Previousyear`12,045.43Lacs)(excludingpenalinterest,penaltyetc).(ReferNoteNo.33(A)(ii)).

(B) CustomdutysavedonimportofrawmaterialunderAdvanceLicensependingfulfillmentofexportobligationis amounting to ` 2,807.51Lacs(PreviousYear`3,026.13Lacs).

Themanagementisoftheviewthatconsideringthepastexportperformanceandfutureprospectsthereiscertaintythatpendingexportobligationunderadvancelicenses,willbefulfilledbeforeexpiryoftherespectiveadvancelicenses.Accordinglyandon“GoingConcernConcept”basisthereisnoneedtomakeanyprovisionforcustomdutysaved.

(Contd..)



29. Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor(netofadvancesof`2,638.94Lacs,PreviousYear`2,094.55Lacs)are`2,609.53Lacs(PreviousYear`2,923.53Lacs).

30. Employees Benefits:a) Defined Contribution Plan: ContributiontoDefinedContributionPlan,recognizedasexpensefortheyearareasunder:(ìnLacs)

Current Year PreviousYear

Employer’sContributiontoProvidentFund 513.29 486.95

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

obligationisdeterminedbasedonactuarialvaluationusingtheProjectedUnitCreditMethod,whichrecognizeseachperiodofserviceasgivingrisetoadditionalunitofemployeebenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.Theobligationforleaveencashmentisrecognizedinthesamemannerasgratuity.

I. Reconciliation of opening and closing balance of Defined Benefit Obligation (ìnLacs)

Gratuity Leave Encashment (Unfunded)

31.3.2016 31.3.2015 31.3.2016 31.3.2015

PresentValueofObligationatthebeginningoftheyear

2282.27 1915.07 703.66 498.74

CurrentServiceCost 197.10 187.04 70.54 67.05

InterestCost 178.02 174.27 54.88 45.39

Actuarial(gain)/lossonobligations (94.13) 174.40 (54.13) 133.68

BenefitPaid (113.47) (168.51) (32.36) (41.20)

Present Value of Obligation as at the end of theyear

2449.79 2282.27 742.59 703.66

II. Reconciliation of opening and closing balance of fair value of plan assets (ìnLacs)

Gratuity31.03.2016 31.03.2015

Fairvalueofplanassetsatthebeginningoftheyear

2002.68 1787.95

ExpectedReturnonPlanAssets 300.40 160.91

Contributions 279.59 127.12

Actuarialgain/(loss)onPlanassets (186.83) 95.21

BenefitPaid (113.47) (168.51)

Fairvalueofplanassetsattheendoftheyear 2282.37 2002.68

III. Reconciliation of fair value of assets and obligation (ìnLacs)

Gratuity Leave Encashment (Unfunded)

31.03.2016 31.03.2015 31.03.2016 31.03.2015

Fairvalueofplanassetsattheendoftheyear 2282.37 2002.68 - -

PresentValueofObligationattheendoftheyear 2449.79 2282.27 742.59 703.66

FundedStatus[surplus/(Deficit)] (167.42) (279.59) (742.59) (703.66)

NetAssets/(Liability)RecognizedinBalanceSheet (167.42) (279.59) (742.59) (703.66)



IV. Expenses recognized during the year (`inLacs)

Gratuity Leave Encashment (Unfunded)31.03.2016 31.03.2015 31.03.2016 31.03.2015

CurrentServiceCost 197.10 187.04 70.54 67.05

InterestCost 178.02 174.27 54.88 45.39

ExpectedReturnonPlanAssets (300.40) (160.91) - -

Actuarial(gain)/loss 92.70 79.19 (54.13) 133.68

NetExpensesRecognized 167.42 279.59 71.29 246.12

V. Investment Detail AllInvestmentsaremadewithTrust.

VI. Actuarial / Demographic assumptions: Gratuity Leave Encashment (Unfunded)

31.03.2016 31.03.2015 31.03.2016 31.03.2015MortalityTable(LIC) 2006-08

(Ultimate)1994-96

(Ultimate)2006-08

(Ultimate)1994-96

(Ultimate)Discountrate(Perannum) 7.70% 7.80% 7.70% 7.80%

ExpectedReturnonPlanAssets(Perannum)

6.00% 9.00% NA NA

Rateofescalationinsalary(Perannum)

8.00% 8.00% 8.00% 8.00%

Retirement Age 58Years 58years

WithdrawalRate(AllAges) 10% 10%

Theestimateofrateofescalationinsalaryconsideredinactuarialvaluation,takenintoaccountinflation,seniority,promotionandotherrelevantfactorsincludingsupplyanddemandintheemploymentmarket.Theaboveinformationiscertifiedbytheactuary.

Theprincipalassumptionsarethediscountrate&salarygrowthrate.ThediscountrateisgenerallybaseduponthemarketyieldsavailableonGovernmentbondsattheaccountingdatewithatermthatmatchesthatoftheliabilities

31. Intheearlieryears,theStateGovernmentofUttarPradesh(UP)hadimposedalevyoflicensefeeontransferofalcoholfromthedistillerytothechemicalplant.ThelevywaschallengedbytheCompanyintheHon’bleSupremeCourtandonOctober18,2006thematterwasfinallydecidedbyTheHon’bleSupremeCourt in favourof theCompany.Accordingly,Companyhadfiledanapplicationforrefundofamountpaidof 507.05Lacs(PreviousYear`507.05Lacs)(shownasrecoverableundertheheadShortTermLoansandAdvances)withStateGovernmentofUttarakhand,whichisstillpendingforrefundoftheamount.

32. Intheearlieryears,theStateGovernmentofUttarakhandhadleviedExportPassFeeonENA/R.S.exportoutsideIndia.Thematter isfinallydisposedofbyHon’bleHighCourtofUttarakhandvideitsOrderdated9thJanuary,2012andhasdeclaredthelevyofsaidfeeasunsustainableandirrecoverable.Subsequently,onJune8,2012,videUttarakhandExcise(Amendment)Act,2012,UttarakhandGovernmentretrospectivelyrevivedoldnotificationrelatingtoimpositionofexportfeeonENAandR.S.TheCompanyfiledWritPetitionchallengingtheabovesaidnotificationandvideorderdatedSeptember12,2012theHon’bleHighCourtofUttarakhandhasgrantedstayandrestrainedStatefromimposingexportfee.Amountof 106.15Lacs(PreviousYear 106.15Lacs)paidunderprotestisshownasrecoverablefromStateGovt.ofUttarakhand,undertheheadShortTermLoansandAdvances.

33. (A) (i) Companyhas investmentof`5,427.50Lacs (PreviousYear`5,427.50Lacs) inequitysharecapitaland10%cumulativeredeemablepreferencesharecapital inasubsidiarycompanyShakumbariSugarandAlliedIndustriesLimited(SSAIL)whosenetworthhasbeenfullyerodedandSSAILhasalsobeendeclaredsickindustrialundertakingaspertheprovisionofSickIndustrialCompaniesAct,1985.

Consideringtheintrinsicvalueoftheinvesteeassets,longtermnatureofinvestmentandfilingofTEV(TechnicalEvaluationStudy)report,andrevivalschemebytheoperatingagency(OA-IDBI)soappointedasdirectedbytheHon’bleBoardforIndustrialandFinancialReconstruction(BIFR),noprovisionatthisstageisconsiderednecessarybythemanagementagainstinvestmentsmadeinabovestatedsubsidiarynamely SSAIL

.



(ii) LoansandadvancesincludesIntercorporatedepositwithSSAILamountingto`1,915.13Lacs(Previ-ousYear`1,915.13Lacs)(includinginterestthereon)andadvancesof`8,453.81Lacs(PreviousYear` 8,453.81Lacs),wheremanagementisconfidentaboutrecoverability/realisabilityofthesame.Accord-ingly,consideringthefactsasstatedinPara(i)aboveandreadwithcommentinPara(iii)below,amountisconsideredgoodandfullyrecoverableandnoprovisionthereagainstandalsoagainstcorporateguar-anteeextendedreadwithnoteno28A(iii)of` 10,845.38Lacs(Previousyear`12,045.43Lacs)(exclud-ingpenalinterest,penaltyetc)isconsiderednecessarybythemanagement.

(iii)CentralBankofIndia(CBI)videitsletterdated28.05.2014hadissuedanoticeunderSection13(2)ofSARFAESIAct2002toSSAILandIGL.ThesaidnoticewasrepliedbySSAILandIGLhaschallengedthelegalityofissuanceofsuchnotices.CBI,thereafter,on11.09.2014hadissuedanothernoticeunderSection13(4)ofSARFAESIonSSAILandIGL,whichhasbeenchallengedatDRT,Lucknow.Asperthelegalopinion,thenoticeissuedbytheCBIisnotvalidsinceSSAILisregisteredwithBIFRassickindustrialCompany.MeanwhileBIFRvideitsorderdated24.09.2015hasrejectedtheappealofCBIforseekingrecoverycertificate,againsttheorderofBIFR,CBIhasfiledanappealbeforeAppellateAuthorityforIndustrialandFinancialReconstruction(AAIFR)whichispending.

(B) (i) Short term loansandadvances to relatedparty includes InterCorporateDeposit (ICD) amounting to`14,649.64Lacs(PreviousYear`14,649.64Lacs)giventoIGLFinanceLtd.(IGLFL),a100%subsidiaryofthecompany.IGLFLinearlieryearhadinvestedfundsforshorttermincommodityfinancingcontractsofferedbyNationalSpotExchangeLtd. (NSEL).NSELhaddefaulted insettling thecontractsonduedates,forwhichIGLFLhasinitiatedlegalandotheractionandinturnIGLFLdidnotpaydueamounttothecompany.AccordinglyconsideringtheprudencenointerestonaboveICDhasbeenaccruedfortheperiodfrom01-09-2013onwards.FurtherconsideringthearrangementofmergerofNSELwithFinancialTechnologies(India)Limited(FTIL)andothermeasurewhichhavesofarbeentakenforandpendingbeforetheGovt.andotherauthorities,themanagementandIGLFLisconfidentforrecoveryofduesfromNSELoveraperiodoftime.

(ii) ConsideringabovenoprovisionhasbeenconsiderednecessaryatthisstageagainsttotalexposureinIGLFLof`14,774.64Lacs(PreviousYear`14,774.64Lacs)(includingInvestmentincapitalof`125.00Lacs),andthesameisconsideredgoodandfullyrecoverable,bythemanagement.

(C) Companyhasreceivedlettersdated30thOct2014and05thMay2015fromNationalStockExchangeofIndia(NSE),whereintheCompanyhasbeenadvisedtoreinstateitsfinancialstatementw.r.t.qualificationraisedfortheyearsFY2012-13bythestatutoryauditoroninvestmentsandloanstoSSAIL(Noteno.33(A)(i)&(ii))andsuitablyrectifiedthequalificationraisedfortheyearFY2013-14bythestatutoryauditorw.r.t.investmentandloantoIGLFL(Noteno.33(B))respectively.Fortheabovematters,theCompanyhassubmittedreplybasedonlegaladvice.

34. Duringtheyear,theCompanyhaddivesteditsentirestakeof`5Lacs(50,000equityShareCapital)inwhol-lyownedsubsidiary IGLInfrastructurePrivateLimited forconsiderationof`300.00Lacsandfurther invested` 64.17LacsinequitycapitalofwhollyownedsubsidiaryIGLChemInternationalUSALLC.

35. TheCompanyhadfiledaclaiminearlieryearof 4,815.06Lacs(includingreinstatementloss 622.63Lacs)withtheinsurancecompanyforthereinstatementofmachineryaswellaslossincurredduetobusinessinterruptiononaccountoffireatKashipurPlantandonprudentbasisaccountedfor 3,029.63Lacs(includingreinstatementloss`622.63Lacs)inpreviousyear.AgainstthisinP.Y.`348.64Lacs(sinceBalanceSheetDatetheCompanyhasalsoreceived`748.80Lacs)hasbeenreceivedandbalanceof`2,680.99LacsbeingreceivablefromtheInsur-anceCompanyisshownundershorttermloans&advances,wheremanagementisconfidentaboutrecoveryoffullamountandhenceconsideredgood.

36. (a)Othercurrentliabilitiesincludesprovisionamountingto 14,167.57Lacs(tillPreviousYear 13,421.55Lacs)madeagainstspecialdiscountallowedtoanoverseasparty(ReferNoteNo.47(c)),pendingreceiptofapprovalofRBI.

(b)Balancesofcertainreceivable,payable,(includingofpartystatedinpara(a)above)loansandadvancesaresubjecttoconfirmationandreconciliation.

37. Duringthecurrentyear,theCompanyhasupwardrevisedtheusefullifeofcertainclassoffixedassets(plant&machinery)basedontechnicalstudyandassessmentdonebyanexternaltechnicalvalueraswellasbasedoninternalassessmentcarriedoutbythemanagement.TheCompanybelievesthattheusefullifeascertifiedbyexternaltechnicalvaluerbestrepresenttheperiodoverwhichCompanyexpectstousetheseassets.Hadthere



notbeenanychangeintheusefullivesofthecertainplant&machinery,thedepreciationfortheyearwouldhavebeenhigherby`2,487.70Lacs.

38. During the current year, The Company has completed the process of Componentisation of fixed assets asprescribedinpartIIofTheCompaniesAct2013.Theimpactofcomponentaccountinghastakenplacew.e.f01stApril2015andaccordinglythedepreciationexpensesforthequarterandyearended31stMarch2016ishigherby` 483.45Lacs.FurtherbasedontransitionalprovisionprovidedinNote7(b)ofScheduleII,anamountof`114.01Lacs(netofdeferredtaxof`60.34Lacs)onaccountofassetswhoseusefullifeisalreadyexhaustedason1stApril2015havebeenadjustedtoGeneralReserveduringtheyearendedMarch31st,2016.

39. OutofadvanceexportproceedswhichtheCompanyhasraisedduringtheyearof`72,641.64Lacs(USD114Million)(noteno6)certainamountoflongtermdebtandworkingcapitalhasbeenpaid/reduced.

40. In accordancewithCompanies (AccountingStandards)AmendmentRules 2009 as amended byCompanies(AccountingStandards) (SecondAmendment)Rules2011, theCompanycontinued itspolicy,asexercised infinancial year2008-09, 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`371.58Lacs(PreviousYear`983.59Lacs)(netofdepreciation` 2.87Lacs,PreviousYear`10.23Lacs)adjustedtothecostoffixedassets,and(b)relatingtootherlong-termmonetary items arising during the year amounting to `Nil (PreviousYear`237.22Lacs)(Netofamortizationof` 158.59Lacs,PreviousYear` 541.28Lacs)areadjustedto“ForeignCurrencyMonetaryItemTranslationDifference”.Ason31stMarch2016,un-amortizeamountof`4,127.32Lacsand`Nil(PreviousYear`3,880.59Lacs and `699.01Lacs)isincludedinPlant&Machinery&CWIPrespectivelyunderNote11andinForeignCurrencyMonetaryItemTranslationDifferenceAccountunderNote3respectively.

41. As required by section 22 of TheMicro,Small andMediumEnterprisesDevelopmentAct, 2006 the followinginformationisdisclosed:

(`inLacs)

S. No Particular 2015-16 2014-15

a) Principal and interest amount due and remaining unpaid at the end of theaccounting year

- -

b) Interestpaidintermsofsection16oftheMSMEActduringtheyear. - -

c) Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecified.

- -

d) Theamountofinterestaccruedandremainingunpaidattheendoftheaccountingyear. - -

e) Theamountoffurtherinterestremainingdueandpayableinsucceedingyear,untilsuchinterestwhentheinterestduesaboveareactuallypaid.

- -

Theaboveinformation’sregardingMicro,SmallandmediumEnterprisehasbeendeterminedtotheextentsuchpartieshavebeenidentifiedofinformationavailablewiththeCompanyandascertifiedbythemanagement.

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

(ii) SpecializedComputerSoftwareisamortizedoveritsusefullifeof6yearsonSLMbasis.

43. Earningspershare(EPS):

2015-16 2014-15

Netprofit/(loss)fortheyearattributabletoequityshareholders(`inLacs) (3,416.01) (6,133.88)

Weightedaveragenumberofequitysharesoutstanding 30961500 30961500

Basicanddilutedearningspershare(facevalueofRs.10each)(`) (11.03) (19.81)



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

(`inLacs)Particulars 2015-16 2014-15Amountbroughtforwardfrompreviousyear 2,411.02 1,438.53Add:RawMaterial&ChemicalConsumed 33.15 83.07

Salary,wages,allowances,etc. 244.39 32.46ContributiontoProvidentandotherfunds 11.30 4.01Employees’welfareandotherbenefits 33.52 25.06LegalandProfessionalcharges 40.32 1.06RepairandMaintenance 90.12 104.15TravellingandConveyance 113.17 27.60InterestonFixedLoans 301.84 789.84PowerandFuel 647.68 768.46RatesandTaxes 0.51 1.05MiscellaneousExpenses 106.38 3.52

4,033.40 3,278.81Less:Transferred/Capitalisedduringtheyear 1,108.97 867.79Balancecarriedforward 2,924.43 2,411.02

45.RelatedPartiesDisclosure(Asidentifiedbythemanagement): (i) Relationships: A. SubsidiaryCompanies -IGLFinanceLimited(IGLFL) -ShakumbariSugarandAlliedIndustriesLimited(SSAIL) -IGLCHEMInternationalPTE.Ltd.(IGLCHEM) -IGLCHEMInternationalUSALLC(IGLCHEMUS) -IGLInfrastructurePrivateLimited.(IGLInfra)(Ceasedon14.09.2015)

B. KeyManagementPersonnel-U.S.Bhartia(ChairmanandManagingDirector)-M.K.Rao(ExecutiveDirector) -RakeshBhartia(ChiefExecutiveOfficer) @-AnandSinghal(ChiefFinancialOfficer) @-LalitSharma(CompanySecretary)(Ceasedon31.05.2015) @-KapilBhalla(CompanySecretary)(w.e.f.24.06.2015) @

C. RelativesofKeyManagementPersonnel-PragyaBhartia-JayshreeBhartia-AnandSinghal(HUF) @-RakeshBhartia(HUF) @-SmitaBhartia @-AlpnaSharma(Ceasedon31.05.2015) @-GeetaBhalla(w.e.f.24.06.2015) @

D. 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. -IGLInfrastructurePrivateLimited.(IGLInfra)(w.e.f.15.09.2015)

E. JointVentureEnterprise -KashipurInfrastructureandFreightTerminalPrivateLimited(KIFTPL) @inaccordancewithCompaniesAct2013.



(ii) DetailofTransactionswithrelatedparties: (`inLacs)Related Party Transaction Summary

Subsidiaries Significant Influence

Joint Venture Key Managerial

Person

Relative of KMP

2016 2015 2016 2015 2016 2015 2016 2015 2016 2015

PurchaseofMaterial

403.81 615.73 0.46 - - - - - - -

PurchaseofServices

- 34.17 80.16 - - -

SaleofMaterial 5,556.55 2,982.11 244.15 281.74 - - -

Slump Sale - 18,420.00 - - - -

ICDgiven 596.74 15.00 - - - 1,436.30 - -

ICDReceivedBack 611.74 74.00 - - - 1,436.30 - -

Advanceagainstagreement

- - 2,663.00 - - - - - - -

AdvanceReceivedBack

- - 2,663.00 - - - - - - -

Interest Income 2092.66 2,078.61 44.95 - - 36.82 - -

InterestWaived-Off 2,076.11 1,989.39 - - - -

SecurityGiven 583.85 - - - - 220.00 -

InvestmentinEquityShares

64.17 67.83 - - 2,440.00 - -

SaleofInvestmentinEquityShare

- - 300.00 - - - - - - -

ReimbursementofExpensesmade

0.02 1.46 49.71 32.49 - 6.85 - -

ReimbursementofExpensesReceived

330.45 - 250.12 - 19.71 - - - - -

Paymentofincomereceived

357.56 - - - - - - - - -

ICDReceived - 700.00 6,383.00 - - - - - -

ICDPaidBack - 700.00 13,293.24 - - -

AdvancesGiven 152.90 180.00 - - - - -

AdvancesReceivedback

152.90 180.00 - - - - -

InterestExpense - 113.17 396.90 - - -

Rent&maintenancePaid

475.18 - 598.68 29.22 - - 24.00 24.00 -

VehicleLeaseRent - - - - 19.50 14.16

SalaryPaid - - - 260.9 263.40 27.29 27.29

ManagerialRemuneration

- - - 221.22 220.48 -

BalanceOutstandingPayable

Others - - 6.41 151.71 - - 0.46 9.75 - 1.44

Receivable

ICD(includinginterest)

16,564.77 16,579.77 - - - - - - -

CapitalAdvanceGiven

- - 1,000.00 1,000.00 - - - - - -

SecurityDeposit - 1,063.85 480.00 - - 500.00 500.00 - -

Others 10,522.76 27,353.02 - 4.60 - - - - - -



(iii) DetailofremunerationtoKMP:- a) Chairman&ManagingDirector–`151.70Lacs(PreviousYear`151.70Lacs) b) ExecutiveDirector–`69.52Lacs(PreviousYear`68.78Lacs) c) ChiefExecutiveOfficer–`185.88Lacs(PreviousYear`185.05Lacs) d) ChiefFinancialOfficer–`52.74Lacs(PreviousYear`54.24Lacs) e) CompanySecretary–`22.35Lacs(PreviousYear`24.11Lacs)(iv) DisclosureinrespectofMaterialRelatedPartytransactionsduringtheyear: a) PurchasesofMaterialarefrom: •SSAIL`403.81Lacs(PreviousYear`615.73Lacs). b) PurchaseofServices •Polylinkpolymers(India)Ltd`Nil(PreviousYear`46.45Lacs) •HindustanWiresLtd`34.17Lacs(PreviousYear`33.71Lacs) c) SalesofMaterialareto: •IGLCHEM,Singapore`5,249.09Lacs(PreviousYear`2,981.47Lacs). •IGLCHEM,USA`307.46Lacs(PreviousYear`Nil). •HindustanWiresLimited.`244.15Lacs(PreviousYear`281.74Lacs). d) SlumpSaletoIGLInfra`Nil(PerviousYear`18,420.00Lacs) e) InterCorporateDeposit/OtherDepositsgivenincludesto: •IGLInfra`596.74Lacs(PreviousYear`15.00Lacs) •KIFTPL`Nil(PreviousYear`1,436.30Lacs) f) InterCorporateDeposit/OthersDepositsreceivedbackincludesfrom: •IGLInfra`611.74Lacs(PreviousYear`Nil) •IGLFL`Nil(PreviousYear`74Lacs) •KIFTPL`Nil(PreviousYear`1,436.30Lacs) g) AdvanceagainstAgreementincludesto: • KashipurHoldingLtd`2,663.00Lacs(PreviousYear`Nil) h) Advancereceivedbackincludesto: • KashipurHoldingLtd`2,663.00Lacs(PreviousYear`Nil) i) InterestIncomeincludesfrom: • SSAIL`135.03Lacs(PreviousYear`135.03Lacs) • IGLFL`1,941.08Lacs(PreviousYear`1,943.58Lacs) • KashipurHoldingLtd`44.95Lacs(PreviousYear`Nil) • KIFTPL`Nil(PreviousYear`36.82Lacs) j) InterestWaivedoffincludes: • SSAIL`135.03Lacs(PreviousYear`45.81Lacs) • IGLFL`1,941.08Lacs(PreviousYear`1,943.58Lacs) k) Advancegivenincludes: • SSAIL`152.90Lacs(PreviousYear`Nil) • KIFTPL`180.00Lacs(PreviousYear`Nil) l) AdvanceReceivedbackincludes: • SSAIL` 152.90Lacs(PreviousYear`Nil) • KIFTPL` 180.00Lacs(PreviousYear`Nil) m)SecurityDepositgivento • USBhartia`Nil(PreviousYear`220.00Lacs) • IGLInfra`583.85Lacs(PreviousYear`Nil) n) InvestmentInEquityShare • KIFTPL`Nil(PreviousYear`2,440.00Lacs) • IGLCHEMUS` 64.17Lacs(PreviousYear` 62.83Lacs) • IGLInfra`Nil(PreviousYear`5.00Lacs) o) SaleofInvestmentinEquityshare. • SupreetVyapaarPvtLtd`15.00Lacs(PreviousYear`Nil) • JBoseck&CoPvtLtd`57.00Lacs(PreviousYear`Nil) • FacitCommosales(P)Ltd`57.00Lacs(PreviousYear`Nil) • J.B.CommercialCo.(P)Ltd`57.00Lacs(PreviousYear`Nil) • HindustanWiresLimited`57.00Lacs(PreviousYear`Nil) • KashipurHoldingsLimited`57.00Lacs(PreviousYear`Nil) p) Reimbursementofexpensemade. • PolylinkPolymers(India)Ltd`47.83Lacs(PreviousYear`30.01Lacs) q) ReimbursementofexpenseReceived. • IGLInfrastructure`580.57Lacs(PreviousYear`Nil) • KIFTPL`19.71Lacs(PreviousYear`6.85Lacs)



r) PaymentofIncomereceived. • IGLInfrastructure`357.56Lacs(PreviousYear`Nil) s) InterCorporateDepositreceivedincludesfrom: • KashipurHoldingLimited`700.00Lacs(PreviousYear`5,308.00Lacs). • JBoseck&Co.(P)Limited`Nil(PreviousYear`600.00Lacs). • SupreetVypaar(P)Limited`Nil(PreviousYear` 415.00Lacs). t) InterCorporateDepositpaidbackincludesto: • KashipurHoldingLimited` 700.00Lacs(PreviousYear`11,152.24Lacs). • MayurBarter(P)Ltd.`Nil(PreviousYear`745.00Lacs). • SupreetVyapaar(P)Ltd.`Nil(PreviousYear`646.00Lacs). • JBoseck&Co.(P)Limited` Nil(PreviousYear`600.00Lacs). • FacitCommosales(P)Ltd`Nil(PreviousYear` 90.00Lacs) u) InterestExpenseincludesto: • KashipurHoldingLimited`113.17Lacs(PreviousYear`294.86Lacs). • SupreetVyapaar(P)Ltd.`Nil(PreviousYear`21.88Lacs). • MayurBarter(P)Ltd.`Nil(PreviousYear`67.05Lacs). v) Rent&MaintenancePaidto: • PolylinkPolymers(India)Ltd.`13.67Lacs(PreviousYear`13.48Lacs) • IGLInfraRs.1,041.42Lacs(PreviousYearRs.Nil) • KashipurHoldingLimited`10.68Lacs(PreviousYear`7.69Lacs) w)VehicleLeasePaidto: • RakeshBhartiaHUF`1.06Lacs(PreviousYear`6.36Lacs) • AnandSinghalHUFRs.6.00Lacs(PreviousYear`4.80Lacs) • AlpnaSharma`0.50Lacs(PreviousYear`3.00Lacs) • SmitaBhartia`10.00Lacs(PreviousYear`Nil) • GeetaBhalla`1.94Lacs(PreviousYear`Nil) x) ICDReceivableincludinginterestincludes:

• SSAIL`1,915.13Lacs(PreviousYear`1,915.13Lacs).(Maximumbalanceoutstandingduringtheyear`1,915.13Lacs,PreviousYear`1,915.13Lacs).

• IGLFLRs.14,649.64Lacs(PreviousYear`14,649.64Lacs).(Maximumbalanceoutstandingduringtheyear `14,649.64Lacs,PreviousYear`14,649.64Lacs).

y) CapitalAdvancereceivable: • HindustanWiresLimited`1,000.00Lacs(PreviousYear`1,000.00Lacs) z) SecurityDepositreceivable: • AjayCommercialCo.(P)Limited` 240.00Lacs(PreviousYear` 240.00Lacs) • J.B.CommercialCo.(P)Limited`240.00Lacs(PreviousYear`240.00Lacs) • IGLInfra`583.85Lacs(PreviousYear`Nil) • USBhartia`500.00Lacs(PreviousYear` 500.00Lacs) aa) OthersReceivableincludes:

• IGLInfra`Nil(PreviousYear`18,420Lacs).(Maximumbalanceoutstandingduringtheyear`18,420Lacs,PreviousYear`18,420Lacs)

• SSAIL 8,453.81Lacs(PreviousYear`8,453.81Lacs).(Maximumbalanceoutstandingduringtheyear`8,658.98Lacs,PreviousYear`8,453.81Lacs).

• IGLCHEMSingapore`1,840.92Lacs(PreviousYear`477.75Lacs).(Maximumbalanceoutstandingduring the year `3,569.69Lacs,PreviousYear`1,462.93Lacs).

• IGLCHEMUSA`228.03Lacs(PreviousYear` 1.46Lacs).(Maximumbalanceoutstandingduringtheyear `228.03Lacs,PreviousYear`1.46Lacs).

46. ExpenditureonResearch&Development: (`inLacs)Particulars 2015-16 2014-15Capital 1,101.76 158.05Revenue 934.57 339.66Total 2,036.33 497.71

47. Exceptionalitemincludes: (a)AProvision/Liabilityof`49.04Lacs(PreviousYear` 1,100.00Lacs)hasbeencreatedagainstfinalsettlement

of foreign exchange contract related dispute; (b) Loss on account of exchange rate differences amounting to` 4,294.94Lacs(netofgainof`3,830.44Lacs)[PreviousYear`1,600.55Lacs(netofgainof`5,064.53Lacs)]onpayment,settlementaswellasreinstatementofshorttermforeigncurrencyborrowingsandothermonetaryassets/ liabilities;(c)Provisiononaccounttospecialdiscounttoanoverseasoverduereceivablesamountingto` 746.02Lacs(PreviousYear` 5,052.12Lacs),inviewofremotechancesofrealizationonaccountofsteepfallinpriceintheinternationalcommoditymarket.(ReferNoteNo.36(a));(d)Profitonsaleof‘RentalBusinessDivision’amounting to `Nil(PreviousYear`5,194.26Lacs);(e)Lossonsaleofspentsilvercatalystamountingto` 917.00Lacs (PreviousYear`2,480.78Lacs)and (f)Writingoffofexport incentive receivableof`Nil (PreviousYear` 756.32Lacs)whichhasbeenrecognizedinearlieryearsasperapplicablegovernmentschemes.



48. IncompliancewithAccountingStandard27onFinancialReportingofInterestinJointVentures,followingdisclo-suresaremadeinrespectofjointlycontrolledentity-KashipurInfrastructureandFreightTerminalPrivateLimited,inwhichtheCompanyisajointventurer:

(ìnLacs)31.03.2016 31.03.2015

CountryofIncorporation India

PercentageofShareinJointVenture 48.90% 48.90%Assets 4,355.17 3306.44Liabilities 4,355.17 3306.44Income 0.21 -Expenditure 3.10 3.07CapitalCommitment(Netofadvances) 460.55 1116.79

49. SegmentInformation:A. InformationaboutBusinessSegments(PrimarySegments): (ìnLacs)

BusinessSegments Others Unallocable Total

IndustrialChemicals Liquor

31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015

A REVENUE

1 Gross Sales (External)

200,657.42 230,894.39 116,262.92 70,056.34 7,016.15 8,222.03 - - 323,936.49 309,172.76

Inter- Segment 145.78 136.99 - - - - - - 145.78 136.99

Total 200,803.20 231,031.38 116,262.92 70,056.34 7,016.15 8,222.03 - 324,082.27 309,309.75

2 OtherIncome 3,007.66 5,864.22 259.31 76.07 133.26 679.23 709.39 1,304.85 4,109.62 7,924.37

3 TotalRevenue 203,665.08 2,36,758.61 116,522.23 70,132.41 7,149.41 8,901.26 709.39 1,304.85 328,046.11 3,17,097.13

B RESULTS

1 Segment Result (PBIT)

11,850.72 2,911.89 4,172.22 1,759.83 2,260.44 1,579.74 (10,248.31) (2,146.78) 8,035.07 4,104.68

2 InterestExpense(Net)

13,281.69 15,769.72

3 ProfitBeforeTax (5,246.62) (11,665.04)

4a ProvisionforCurrentTax(netofMATcredit)

- -

4b DeferredTax (2,240.14) (5,531.16)

4c Taxationprovisionofearlieryear/MAT(Credit)entitlement

409.53 -

5 Profit after Tax (3,416.01) (6,133.88)

C Other Information:

1 Segment Assets 206,859.46 223,530.20 30,577.32 26,336.20 17,079.83 16,720.38 45,840.47 49,188.52 300,357.08 3,15,775.30

2 Segment Liabilities

126,801.84 37,643.66 13,042.88 9,976.85 1,761.43 2,523.20 116,021.45 2,20,101.10 257,627.60 2,70,244.81

3 Capital Expenditure

8,793.95 7,860.41 468.07 281.53 1,059.46 687.07 - - 10,321.48 8,829.01

4 Depreciation and Amortisation expenses

4,514.50 6,720.25 260.76 276.25 463.44 1,021.45 259.47 816.96 5,498.17 8,834.91

InformationaboutGeographicalSegments(SecondarySegments): (ìnLacs)

Domestic Overseas Total31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015

1 Gross Sales (External)

236,641.74 2,06,197.87 87,294.75 1,02,974.89 323,936.49 309,172.76

2 Segment Assets 247,334.09 2,42,692.54 7,182.52 23,894.24 254,516.61 266,586.78

Notes: Primary Segment reporting (by business segment)Segments have been identified in line with Accounting Standard on ‘Segment Reporting’ (AS-17), takingintoaccounttheorganisationalstructureaswellasthedifferentialrisksandreturnsofthesesegments.TheCompanyhasidentifiedthreesegmentsi.e.businessIndustrialchemical,Liquorandotherswhichincludesherbalproductsandreportedaccordingly.



Secondary Segment reporting (by geographical segment-customer location)In respectofsecondarysegment information, theCompanyhas identified itsgeographicalsegmentas(a)domesticand(b)overseasonthebasisoflocationofcustomers.Reportable segmentsReportablesegmentshavebeenidentifiedasperthequantitativecriteriaspecifiedin‘AccountingStandard17:SegmentReporting’.Segment CompositionIndustrial Chemicals Segment comprisesGlycols, Specialty Chemicals, Natural Gum and other relatedgoodsetc.Liquor SegmentcomprisesmanufactureandsaleofEthylAlcohol(Potable).‘Others’ primarilyincludesHerbalProductsandRental.

50. AdditionalInformation: A. (a) PaymenttoAuditors(Exclusiveofapplicableservicetax) (ìnLacs)

2015-16 2014-15i)ii)

As AuditorsInothercapacityinrespectof

17.50 15.00

a)OutofPocketExpenses 1.27 1.08b)Certificationandothermatters 13.69 6.15

32.46 22.23

(b) CostAuditors(Exclusiveofapplicableservicetax) (ìnLacs)2015-16 2014-15

i) Audit Fees 1.75* 1.00ii) OutofPocketExpenses 0.00 0.13

1.75 1.13

*includes`0.25lacsofearlieryear

B. (a) C.I.F.ValueofImports (ìnLacs)Particulars 2015-16 2014-15

i) CapitalGoods 6,270.49 6,818.34ii) Stores&Spares 806.96 1,423.74iii) RawMaterials 38,507.44 33,778.60iv) Traded Goods 25,052.46 32,934.30

(b) EarninginForeigncurrency (ìnLacs)

Particulars 2015-16 2014-15

FOBValueofExports–Goods 81,575.12 96,151.79

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

NatureofInstruments 2015-16Amount

(FC in millions)

2015-16Amount

(` in Lacs)

2014-15Amount

(FCinmillions)

2014-15Amount

(ìnLacs)

ForwardContracts-USD 0.30 198.78 2.00 1,250.10Foreign currency options -USD 10.25 6,791.65 - -Open foreign exchange exposures:PackingCreditNetofExportdebtors-USD 20.65 13,683.77 52.38 32,742.26Loans-USD 5.66 3,748.01 49.44 30,906.86Payable-USD-EURO-JPY-CHF

17.71---

11,733.77---

17.860.031.330.01

11,166.3918.246.912.82



(b) TheCompanyusesderivativeinstrumentsforhedgingpossiblelossesandexchangefluctuationlossis` 209.99Lacsnetoffgainof` 1,193.91Lacs(PreviousYeargain` 923.67Lacsnetofflossof`1,270.11Lacs)whichisinclusiveoflossof` 505.06Lacs(PreviousYearlossof` 71.37Lacs)provisionformarktomarketgain/lossonaccountofalloutstandingfinancialtransactionsason31stMarch2016.

(c) ConsideringtheprincipleofprudenceandannouncementmadebyTheInstituteofCharteredAccountantsofIndia‘AccountingforDerivatives’inMarch,2008,theCompanyhasprovidedforanamountof`36.59Lacsincludedin(b)(PreviousYear`41.08Lacs)onoutstandingcontractstotheStatementofProfit&Loss,onaccountofforeignexchangederivativeinstruments.

D. Disclosuresofleasingarrangements(Operatinglease)(a) TheCompanyhasoperatingleaseforitsHeadofficepremisesinNoidaforaperiodupto9years.Lease

agreementsare locked-in foraperiodoffirst3years (Non-Cancellableperiod)andsubsequently, theleasecanbemaintainedattheoptionoftheCompany(lessee)(cancellableperiod).Thereareescalationclausesevery3years.

The lease rental chargedduring the year for cancellable andnon-cancellable operating leaseare asfollows:

(ìnLacs) Particular As at

31st March, 2016As at

31stMarch,2015LeaseRentExpenses 694.23 111.53

(b) Thescheduleoffutureminimumleaserentalinrespectofnon-cancellableoperatingleasesperiodissetoutasunder:

(ìnLacs) Particular As at

31st March, 2016As at

31stMarch,2015Notlaterthanoneyear 583.85 -Laterthanoneyearbutnotlaterthanfiveyears 583.85 -Laterthanfiveyears - -

E. ExpenditureinForeignCurrency (ìnLacs)Particulars 2015-16 2014-15

a) Travellingandothermatters 131.34 125.59b) Interest 465.08 408.96c) Advertisement/Subscription/Membership 103.83 314.88d) Commission 944.19 372.50e) Others 9.25 10.58

F. RemittanceinForeignCurrencyonDividendAccount 2015-16 2014-15

AmountofFinalDividendRemitted* ` Nil `0.40LacsYeartowhichtheDividendrelates - Yearended

31stMarch2014No.ofEquitySharesheldbyNon-residentshareholders - 40300

No.ofNon-residentshareholders - 54

*ExcludingforthoseshareholdersforwhomdividendhasbeencreditedtotheirNREAccountsinIndia.

51. Previousyear’sfigureshavebeenregrouped/rearranged/recastwhereverconsiderednecessary.

AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao Chartered Accountants Chairman and Managing Director Executive Director FirmRegistrationno.301051E




(`inLacs)

S. No 1 2 3 4Name of the Subsidiary Company Shakumbari Sugar

& Allied Industries Limited

IGL Chem International

PTE. LTD.

IGL Finance Limited

IGL Chem International

USA LLC.Financial ending year on March31,2016 March31,2016 March31,2016 March31,2016

ReportingCurrency INR INR USD INR INR USDExchangeRateonthelastdateoffinancialyear

66.26 66.26

ShareCapital 6,067.71 27.41 0.79 150.00 127 2.00Reserves&Surplus (19,423.88) (227.75) (3.82) (65.09) (230.76) (3.57)Total Assets 11,221.22 2,301.55 34.74 14,934.89 150.41 2.27

TotalLiabilities 11,221.22 2,301.55 34.74 14,934.89 150.41 2.27Investments - - - 290.00 - -Turnover 1,095.34 5,050.36 76.28 - 169.18 2.56Profit/(loss)beforetax (1,024.30) (11.50) (0.19) (0.39) (232.04) (3.34)

ProvisionforTaxation - 0.00 0.00 0.75 - -Profit/(loss)afterTaxation (1,024.30) (11.50) (0.19) (1.15) (232.04) (3.34)

ProposedDividend - - - - -%ofShareholding 98.89% 100% 100% 100%

Note :i)Duringtheyear,Comapyhassolditsentirestakeinwhollyownedsubsidiary,IGLInfrastructurePvtLtd.

PART “B” : Associates and Joint Ventures

StatementpursuanttoSection129(3)ofthecompaniesAct,2013relatedtoAssociateCompaniesandJointVentures

Form AOC-1(Pursuanttofirstprovisotosub-section(3)ofsection129readwithrule5ofCompanies(Accounts)Rules,2014)Statement containing salient features of the financial statements of subsidiaries/associate companies/joint ventures

PART “A” : Subsidiaries

(`inLacs)

S.No 1Name of the Associates/Joint Venture KashipurInfrastructureand

FreightTerminalPrivateLimited1. Latest audited Balance Sheet Date March31,2016ReportingCurrency INR2. Shares of Associate/Joint Ventures held by the company on the year end No. 2,445,000.00AmountofInvestmentinAssociates/JointVenture 2,440.50

ExtendofHolding% 48.90%3. Description of how there is significant influence JointVentureAgreement

4. Reasons why the associate/joint venture is not consolidated N.A.5. Networth attributable to Shareholding as per latest audited Balance Sheet 2,652.53

6. Profit/Loss for the year i.ConsideredinConsolidation (2.89)ii.NotConsideredinConsolidation (3.02)

Note :i)KashipurInfrastructureandFreightTerminalPvtLtdyettocommenceoperation.ii)TherearenoAssociatesorJointVenturewhichhavebeenliquidatedorsoldduringtheyear.



INDEPENDENT AUDITOR’S’ REPORT TO THE MEMBERS OF INDIA GLYCOLS LIMITEDReport on the Consolidated Financial StatementsWe have audited the accompanying consolidated financialstatements of IndiaGlycols Limited (hereinafter referred toas“theHoldingCompany”)anditssubsidiaries(theHoldingCompany and its subsidiaries together referred to as “theGroup”), and joint venture, comprising of the ConsolidatedBalance Sheet as at 31st March, 2016, the ConsolidatedStatement of Profit and Loss, theConsolidatedCash FlowStatement for the year then ended, and a summary ofthe significant accounting policies and other explanatoryinformation (hereinafter referred to as “the consolidatedfinancialstatements”).

Management’s Responsibility for the Consolidated Financial StatementsTheHoldingCompany’sBoardofDirectorsisresponsibleforthe preparation of these consolidated financial statementsin terms of the requirements of the Companies Act, 2013(hereinafter referred to as “the Act”) that give a true andfairviewof theconsolidatedfinancialposition,consolidatedfinancial performance and consolidated cash flows of theGroup including its joint venture in accordance with theaccounting principles generally accepted in India, includingtheAccountingStandardsspecifiedunderSection133oftheAct, readwithRule 7 of theCompanies (Accounts) Rules,2014. The respective Board of Directors of the companiesincludedintheGroupanditsjointventureareresponsibleformaintenanceofadequateaccountingrecordsinaccordancewith the provisions of the Act for safeguarding the assetsof the Group and its joint venture and for preventing anddetecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent;andthedesign,implementationandmaintenanceofadequateinternalfinancialcontrols, thatwereoperatingeffectively forensuring theaccuracyandcompletenessof theaccountingrecords, relevant to thepreparationandpresentationof thefinancial statements that give a true and fair view and arefree from material misstatement, whether due to fraud orerror,whichhavebeenusedforthepurposeofpreparationoftheconsolidatedfinancialstatementsbytheDirectorsoftheHoldingCompany,asaforesaid.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopinionontheseconsolidatedfinancialstatementsbasedonouraudit.Whileconductingtheaudit,wehavetakenintoaccounttheprovisionsoftheAct,the accounting and auditing standards and matters which are requiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.WeconductedourauditinaccordancewiththeStandardsonAuditing specifiedunderSection143(10) of theAct. ThoseStandardsrequire thatwecomplywithethical requirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsarefreefrommaterialmisstatement.An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in theconsolidated financial statements.Theprocedures selecteddependontheauditor’sjudgment,includingtheassessmentof the risks of material misstatement of the consolidatedfinancial statements, whether due to fraud or error. Inmaking those risk assessments, the auditor considersinternal financial control relevant to theHoldingCompany’spreparationoftheconsolidatedfinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.Anauditalsoincludesevaluating the appropriateness of the accounting policiesused and the reasonableness of the accounting estimatesmadebytheHoldingCompany’sBoardofDirectors,aswell

as evaluating the overall presentation of the consolidatedfinancialstatements.Webelieve that theauditevidenceobtainedbyusand theaudit evidence obtained by the other auditors in terms oftheir reports referred to in sub-paragraph (a) & (b) of theOtherMattersparagraphbelow,issufficientandappropriateto provide a basis for our qualified audit opinion on theconsolidatedfinancialstatements.

Basis for Qualified OpinionAttention is invited to:i. Note no. 32 of the consolidated financial statements

regarding non provision against total exposure of amounting `14,444.43 Lacs (Previous Year `14,444.43 Lacs) in NSEL made by a subsidiary, where the management is confidentaboutitsrecoverabilityforthereasonasstatedin said note, and our inability to comment thereon.

ii. (a)Note no. 47(b)(iii)of the consolidated financialstatements related with a subsidiary Company SSAIL regarding non-provisioning of interest amounting to ` 2,079.64 Lacs (P.Y. - ` 977.52 lacs) (excluding penal interest, charges etc. - amount unascertained) and pendingconfirmationofsecuredloans,asstatedinthesaid note. In respect of loan facility availed by the SSAIL (a sick company), the Company has given corporate guarantee to the Banks and Financial Institutions as stated in note no. 29 (A)(iv) & 34; and

(b) preparation of Financial Statements of SSAIL on going concern basis as stated in note no. 47(a) for the reason stated in the said note and our inability to comment thereon.

iii.Noteno.44oftheconsolidatedfinancialstatementsrelatedwith a subsidiary SSAIL regarding non provision against impairment lossonitsfixedassetsforthereasonstatedinthe said note, as its expected recoverable value is more than its carrying value and our inability to comment thereon.

We further report that the loss for the year, reserve & surplus, balance of banks, fixed assets, secured loans, loans &advances are without considering impact of the above which cannot be ascertained or otherwise for the reason stated in as above. Our opinion was also qualified in respect ofmatterreportedinpara(i),(ii)(a)&(iii)aboveonthefinancialstatements for the year ended 31stMarch 2015.Qualified Opinion In our opinion and best to our information and according to the explanations given to us, except for the possible effects of the matter described in the “Basis for Qualified Opinion” paragraph above, and based on the consideration of the reports of other auditors on the financial statementsof the subsidiaries and the joint venture as noted below, the Consolidated Financial Statements give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of the affairs of the Group and its joint venture as at 31st March 2016, and its consolidatedlossanditsconsolidatedcashflowsfortheyearended on that date.Emphasis of MatterAttentionisdrawntothefollowing:i. Note no. 37 (a) of audited financial statement for the

year ended 31.03.2016 regarding pending receipts ofnecessaryapprovalsasstatedinnoteforprovisionmadeamounting to `14,167.57Lacs(includingmadeinearlieryearsof`13,421.55Lacs)forspecialdiscountonaccountofsteepfallinprices.

ii. Note no. 45 and 43 (i) (a) related with a subsidiaryregardingpendingconfirmation/reconciliationofbalancesofreceivables,payables,banks(includingfixeddepositswithbank),loans&advances{includingcapitaladvances},current liabilitiesandprovisionand internalcontrol tobefurtherstrengthenedforthereasonsasstatedinthesaid



noteandconsequentialimpactwhereofpresentlycannotbeascertainedandpendingverificationandupdationofcertainfixedassetsrecordsasstatedinthesaidnote.

iii. Forthequalifications(a)and(b)statedunderparaBasis of Qualified Opinionofstandaloneauditreportregardinglettersreceived dated 30thOctober 2014 and 5thMay 2015 fromNationalStockExchangeofIndia,whereintheCompanyhasadvisedtoreinstatement/suitablyrectifyfinancialstatements,attentionisdrawn.(readwithnoteno.33).

Ouropinionisnotmodifiedinrespectofabovematters.Other Matters(a) We did not audit the financial statements of the

subsidiarycompanyM/s IGLFinanceLimited,M/s IGLChem International PTE Limited and M/s IGL ChemInternational USA LLC whose financial statementsreflecttotalassetsof` 17,386.85Lacsasat31st March,2016,totalrevenuesofRs.5,219.66Lacsandnetprofit/(loss)aftertaxamountingto`(244.70)Lacsfortheyearended on that date as considered in the consolidated financial statements. These financial statements havebeen audited by other auditors, whose reports havebeen furnished to us by the Management and ouropinionon theconsolidatedfinancialstatements, insofarasitrelatestotheamountsanddisclosuresincludedinrespectofthesesubsidiariesandourreportintermsofsub-sections(3)and(11)ofSection143oftheAct,insofarasitrelatestotheaforesaidsubsidiariesisbasedsolelyonthereportoftheotherauditors.

(b) We did not audit the financial statements of the jointventureM/sKashipurInfrastructureandFreightTerminalPvt.Ltd.whosefinancialstatementsreflecttotalassetsof`4,355.17Lacsasat31stMarch2016,totalrevenuesof 0.21lacsandnetprofit/(loss)aftertaxof (2.89)Lacsfortheyearthenended.Thesaidfinancialstatementshavebeenauditedbyotherauditor,whose reporthasbeenfurnishedtousbythemanagementandouropinion,insofarasitrelatestothisjointventureisbasedsolelyonthe reportof theirauditorsand further informationandexplanationprovidedtousandrelieduponbyus.

(c) FinancialstatementsofonesubsidiarycompanynamelyShakumbari Sugar & Allied Industries Limited, whosefinancial statement reflect total assets of ` 11,221.22Lacsasat31stMarch2016andtotalrevenueof 1095.34Lacsandnetprofit/(loss)aftertaxof`(1,024.30)Lacsfor theyear thenended,havebeenauditbyuswherenetworthoftheCompanyisnegativeandaccountshasbeenpreparedongoingconcernbasis.

Ouropinionontheconsolidatedfinancialstatements,andourreportonOtherLegalandRegulatoryRequirementsbelow,isnotmodifiedinrespectoftheabovematterswithrespecttoourrelianceontheworkdoneandthereportsoftheotherauditors.Report on Other Legal and Regulatory RequirementsAs required by Section143(3) of the Act, we report, to theextentapplicable,that:a) We have sought and obtained all the information and

explanations which to the best of our knowledge andbeliefwerenecessary for thepurposesof ouraudit oftheaforesaidconsolidatedfinancialstatements.

b) Except for the effect of the matter described in the Basis for QualifiedOpinionparagraphabove,inouropinion,properbooksofaccountasrequiredbylawrelatingtopreparationof the aforesaid consolidated financial statements havebeenkeptsofarasitappearsfromourexaminationofthosebooksandthereportsoftheotherauditors.

c) The Consolidated Balance Sheet, the ConsolidatedStatement of Profit and Loss, and the ConsolidatedCash FlowStatement dealt with by this Report are inagreementwiththerelevantbooksofaccountmaintained

for the purpose of preparation of the consolidatedfinancialstatements.

d) In our opinion, the aforesaid consolidated financialstatements comply with the Accounting Standards specifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) Thematterdescribed in thebasis forqualifiedopinionparagraph above, in our opinion, may have an adverse effect on the functioning of the group.

f) On the basis of the written representations receivedfrom the directors of theHoldingCompany as on 31st March,2016takenonrecordbytheBoardofDirectorsof the Holding Company and the reports of the otherstatutory auditors of subsidiaries companies and jointventure incorporated in India, none of the directors oftheGroup’s companies and joint venture incorporatedinIndiaisdisqualifiedason31stMarch,2016frombeingappointedasadirectorintermsofSection164(2)oftheAct.

g) With respect to the adequacy of the internal financialcontrolsover financial reporting of thegroupand theoperating effectivenessof suchcontrols ,refer toourseparate report in “Annexure-A”, and

h) Withrespect to theothermatters tobe included in theAuditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditor’s) Rules, 2014, in ouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:i. Theconsolidatedfinancialstatementsdisclosethe

impact of pending litigations on the consolidatedfinancialpositionoftheGroupanditsjointventure–Refer Note No. 29(A)(i), 29(A)(ii), 29(A)(v), 29(A)(vi)30,31,32and34totheconsolidatedfinancialstatements.

ii. Provision has been made in the consolidatedfinancial statement, as required under theapplicablelaworaccountingstandards,formaterialforeseeable losses, if any,on long termcontractsincludingderivativecontracts.ReferNoteNo.52(b)&52(c)totheconsolidatedfinancialstatements.

iii. Therehasbeennodelay in transferringamounts,requiredtobetransferred,totheInvestorEducationand Protection Fund by the group and its jointventureincorporatedinIndia.

For Lodha& Co. CharteredAccountants Firm’sRegistrationNo.301051E

(N. K. Lodha)Place:Noida,UP PartnerDate:26thMay,2016 MembershipNo:-85155

Annexure-A of the Auditors’ ReportReport on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)In conjunction with our audit of the Consolidated financialstatementsoftheCompanyasofandfortheyearended31March 2016, we have audited the internal financial controloverfinancialreportingof India Glycols Limited(“theHoldingCompany”) and its subsidiary companies (the Holding company and its subsidiaries (incorporated in India)togetherreferredtoas“the Group”),andjointventure,whicharecompaniesincorporatedinIndia,asofthatdate.

Management’s Responsibility for Internal Financial ControlsTheRespectiveBoardofDirectorsof theHoldingcompanyand its subsidiary Companies, which are incorporated in



India,areresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancialreporting criteria established by the Company consideringthe essential components of internal control stated in theGuidanceNoteonAuditof InternalFinancialControlsoverFinancial Reporting issued by the Institute of CharteredAccountants of India (‘ICAI’). These responsibilities includethe design, implementation and maintenance of adequateinternal financial controls thatwereoperatingeffectively forensuring the orderly and efficient conduct of its business,includingadherencetoCompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,the accuracy and completeness of the accounting records,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopinionontheCompany’sinternal financial controls over financial reporting based onour audit. Weconductedour audit in accordancewith theGuidanceNoteonAuditof InternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)andtheStandardson Auditing, issued by ICAI and deemed to be prescribedunder section 143(10) of theCompanies Act, 2013, to theextent applicable to an audit of internal financial controls,both applicable to an audit of Internal Financial Controlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethical requirementsandplanandperformthe audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.Our audit involves performing procedures to obtain auditevidence about the adequacy of the internal financialcontrols systemover financial reportingand their operatingeffectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding ofinternalfinancialcontrolsoverfinancialreporting,assessingthe risk that a material weakness exists, and testing andevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our auditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.Wedidnotauditthefinancialstatementsoftheonesubsidiarycompany namely, M/s IGL Finance Limited and one JointventurenamelyM/sKashipurInfrastructureandFreightTerminalPvt. Ltd., whose financial statements have been audited byotherauditors,whosereportshavebeenfurnishedtousbytheManagementandouropinion, in respectof thesesubsidiariesundersubsection(3)and(11)ofsection143oftheAct,insofarasitrelatestotheaforesaidsubsidiariesasat31stMarch2016,isbasedsolelyonthereportofotherauditors.

Meaning of Internal Financial Controls Over Financial ReportingAGroup’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthe reliability of financial reporting and the preparation offinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.AGroup’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat, in reasonable detail, accurately and fairly reflect thetransactionsanddispositionsoftheassetsoftheGroup;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsin

accordance with generally accepted accounting principles,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsoftheGroup(Holdingcompany,itssubsidiariesandjointventure,whicharecompaniesincorporatedinIndia);and(3)providereasonableassuranceregardingpreventionor timely detection of unauthorized acquisition, use, ordispositionoftheGroup’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls Over Financial ReportingBecauseoftheinherentlimitationsofinternalfinancialcontrolsover financial reporting (IFCoFR), including the possibilityof collusion or improper management override of controls,materialmisstatementsduetoerrororfraudmayoccurandnot be detected. Also, projections of any evaluation of theinternal financial controls over financial reporting to futureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

OpinionIn our opinion, read with the matters described belowunder Emphasis of Matters, the Holding Company and itssubsidiarycompaniesandjointventure,whicharecompaniesincorporatedinIndiahave,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperating effectively as at March 31, 2016, based on theinternal control over financial reporting criteria establishedby the Company considering the essential componentsof internal control stated in theGuidanceNote onAudit ofInternalFinancialControlsOverFinancialReporting issuedbytheInstituteofCharteredAccountantsofIndia.

Emphasis of MatterAttentionisdrawnto:(i) Accordingto the informationandexplanationsgivento

us,thecompanyhasadequateinternalfinancialcontrolssystemoverfinancial reporting,however, thecompanyneedstofurtherstrengthenitsinternalcontrolsystemoverfinancialreportingregardingbalanceconfirmation(Readwithnoteno.37)tobemadethesamecommensuratewith size and nature of business and our commentsunder‘BasisofQualification’inourmainreport.

(ii) InrespectofsubsidiarySSAIL- The Company IFCoFR needs to be strengthen w.r.t.

processes/assessment of impact of (a) confirmation/reconciliation of balances of receivables, payables,banks (including fixed deposits with banks), loans &advances{includingcapitaladvances},currentliabilitiesandprovision(noteno.45);(b)verificationandupdationof certain fixed assets records (note no. 43(i)(a)) andassessmentof impairment lossonFixedAssets(Readwithnoteno.44).

Ouropinionisnotmodifiedinrespectofmatterstatedabove.Wehaveconsideredtheweaknessesidentifiedandreportedaboveindeterminingthenature,timing,andextentofaudittestsappliedinourauditoftheMarch31st,2016consolidatedfinancialstatementsoftheCompany,andtheseweaknessesdonotaffectouropiniononthe2016consolidatedfinancialstatementsoftheCompany.

For Lodha& Co. CharteredAccountants Firm’sRegistrationNo.301051E

(N. K. Lodha)Place:Noida,UP PartnerDate:26thMay,2016 MembershipNo:-85155



Consolidated Balance Sheet as at 31st March, 2016

Summaryofsignificantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao Chartered Accountants Chairman and Managing Director Executive Director FirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerMembershipNo.85155Place :Noida,UP Place : Noida,UP Lalit Kumar Sharma Dated:26thMay,2016 Dated : 28thMay,2015 Company Secretary

(`inlacs)Particulars NoteNo. As at

31.03.2016 As at

31.03.2015EQUITY AND LIABILITIESShareholders’ FundsShareCapital 2 3,096.15 3,096.15ReservesandSurplus 3 22,344.89 26,609.08

25,441.04 29,705.23Non-current LiabilitiesLong-termborrowings 4 21,473.25 40,068.17Deferredtaxliabilities(Net) 5 2,574.14 4,874.61OtherLong-termliabilities 6 65,858.51 407.97Long-termprovisions 7 561.27 519.95

90,467.17 45,870.70Current LiabilitiesShort-termborrowings 8 101,609.94 141,759.10

Tradepayables 9 48,043.88 24,652.96Othercurrentliabilities 10 33,726.76 72,954.49Short-termprovisions 7 364.96 498.94

183,745.54 239,865.49TOTAL 299,653.75 315,441.42ASSETSNon-current AssetsFixed Assets Tangibleassets 11 112,794.32 111,476.28 Intangibleassets 11 15.93 76.90 Capitalwork-in-progress 11 19,995.20 16,137.61 Intangibleassetsunderdevelopment 11 50.17 48.90GoodwillonConsolidation 3,039.30 3,039.30Non-currentinvestments 12 395.00 400.00Long-termloansandadvances 13 6,995.28 5,816.21Othernon-currentassets 14 4,265.02 314.29

147,550.22 137,309.49Current AssetsCurrentInvestments 12 - -Inventories 15 52,611.56 48,708.73Tradereceivables 16 36,848.13 43,719.81CashandBankbalances 17 4,577.52 16,191.85Short-termloansandadvances 18 56,801.87 69,043.49Othercurrentassets 19 1,264.45 468.05

152,103.53 178,131.93TOTAL 299,653.75 315,441.42



Summaryofsignificantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements.


N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerMembershipNo.85155

Place :Noida,UP Place : Noida,UP Lalit Kumar Sharma Dated:26thMay,2016 Dated : 28thMay,2015 Company Secretary

Particulars NoteNo. 2015-16 2014-15

Revenuefromoperations 20 232,576.55 257,949.78

Otherincome 21 677.26 4,226.86

Total Revenue 233,253.81 262,176.64

Expenses:

Costofmaterialsconsumed 22 123,924.33 138,647.78

PurchaseofStock-in-Trade 23 26,619.18 32,934.30

Changeininventoriesoffinishedgoods,work-in-progressand Stock-in-trade

24 (3,851.88) 4,378.13

Employeebenefitexpense 25 8,773.90 9,214.27

Finance costs 26 13,802.76 16,338.73

Depreciationandamortizationexpense 11 5,756.18 8,878.48

Otherexpenses 27 58,964.69 60,385.87

Total Expenses 233,989.16 270,777.56

Profit/ (Loss) before exceptional items and tax (735.35) (8,600.92)

ExceptionalItems(Net) 48 6,007.00 5,795.51

Profit/ (Loss) before tax (6,742.35) (14,396.43)

TaxExpense:

-CurrentTax - -

-DeferredtaxCharged/(Credit) (2,240.14) (5,531.16)

-Taxforearlieryears 0.49 (0.78)

-MinimumAlternateTax(Credit)entitlement 409.79 -

Profit/ (Loss) for the period (4,912.49) (8,864.49)

Earning per Equity share basic/ diluted (in `) (15.87) (28.63)

Consolidated Statement of Profit & Loss for the year ended March 31, 2016(`inlacs),exceptasotherwisestated



Consolidated Cash Flow Statement for the year ended 31st March, 2016 (`inlacs)

2015-16 2014-15

A Cash Flow from Operating ActivitiesNetProfit/(Loss)BeforeTax (6,742.35) (14,396.43)AdjustmentsFor:Depreciation 5,756.18 8,878.48(Profit)/LossonSaleofAssets 12.10 (5,197.77)UnrealisedForeignExchangeFluctuation(Gain)/Loss 245.19 94.53AmortisationofForeignCurrencyMonetaryItemTranslationDifference 857.60 2,355.19EffectofExchangeDifferenceonTranslationofForeignCurrencyCash&CashEquivalent

0.03 0.01

InsuranceGainRecoverable - (2,407.00)(Profit)/LossonSaleofNon-CurrentInvestments (295.00) (684.74)(Profit)/LossonSaleofCurrentInvestments - 0.63BadDebtsW/Off&ProvisionforDoubtfulDebts&Advances 1,340.02 6,280.49ProvisionNoLongerRequiredWrittenBack (678.04) (214.01)FinanceCosts 14,433.66 17,867.38Interest/DividendIncome (959.22) 20,712.52 (2,003.87) 24,969.32Operating Profit/ (Loss) before Working Capital Changes 13,970.17 10,572.89AdjustmentsFor:(Increase)/DecreaseinTrade&OtherReceivables 23,015.62 (14,735.50)(Increase)/DecreaseinInventories (3,902.83) 9,965.79Increase/(Decrease)inTrade&OtherPayables 90,938.36 110,051.15 (22,648.89) (27,418.60)Cash Generated from / (Used in) Operations 124,021.32 (16,845.71)IncomeTaxPaid(Net) (182.14) (257.19)Net Cash flow from / (Used in) Operating Activities 123,839.18 (17,102.90)

B Cash Flow from Investing ActivitiesPurchaseofFixedAssets (10,702.94) (7,117.33)SaleofFixedAssets 59.05 18,943.67Interest/Dividendreceived 1,257.72 1,890.02ICDsgiven (596.74) (15.00)ICDsreceivedback 611.74 3,062.00Investmentsinsharesofsubsidiaries/jointventure - (5.00)SaleofNon-CurrentInvestments 300.00 693.85SaleofCurrentInvestments - 9.17Net Cash flow from / (Used in) Investing Activities (9,071.17) 17,461.38

C Cash Flow from Financing ActivitiesProceedsfromGovtsubsidy 30.00 - ProceedsfromIssueofShareCapital - 220.19ProceedsfromBorrowings 14,866.22 79,389.88RepaymentofBorrowings (116,123.38) (61,203.10)FinanceCosts (14,728.61) (18,415.36)DividendsPaid(IncludingCorporateDividendTax) (21.82) (371.62)Net Cash flow from / (Used in) Financing Activities (115,977.59) (380.01)

D Effect of Changes in Currency Fluctuation Reserve 33.30 (2.67)E Effect of Exchange Differences on Translation of Foreign Currency (0.03) (0.01)

Cash & Cash EquivalentNet Increase/(Decrease) in Cash & Cash Equivalents [A+B+C+D+E]

(1,176.31) (24.21)

OpeningCash&CashEquivalent(refernote17) 2,183.89 2,208.10ClosingCash&CashEquivalent(refernote17) 1,007.58 2,183.89

Theaccompanyingnotesareanintegralpartofthefinancialstatements. AsperourreportofevendateFor Lodha & Co. U.S. Bhartia M.K. Rao Chartered Accountants Chairman and Managing Director Executive Director FirmRegistrationno.301051E N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerMembershipNo.85155 Place :Noida,UP Place : Noida,UP Lalit Kumar Sharma Dated :26thMay,2016 Dated : 28thMay,2015 Company Secretary



Notes to Consolidated Financial Statements1. SIGNIFICANT ACCOUNTING POLICIES

2. SHARE CAPITAL


Particulars As at As at 31.03.2016 31.03.2015

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

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

anditsfollowingSubsidiaries/JointVentureasonMarch31,2016.

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%

IGLInfrastructurePvt.Ltd.* Subsidiary India 100%

IGLChemInternationalUSALLC(IGLCHEMUS) Subsidiary USA 100%

Kashipur Infrastructure and Freight Terminal PrivateLimited(KIFTPL)

JointVenture India 48.90%

*Ceasedtosubsidiaryon14.09.2015(ii) ForConsolidationIGLInfrastructurePvt.Ltd.,awhollyownedsubsidiaryhasnotbeenconsideredastheinvest-

mentwasheldtemporarilywithaviewtoitssubsequentdisposalinthenearfuture.(iii) TheConsolidatedFinancialStatementshavebeenpreparedusinguniformaccountingpoliciesandinaccordance

withthegenerallyacceptedaccountingprinciples(GAAP).(iv) Theeffectsofintergroupbalancesandtransactionsareeliminatedinconsolidation.(v) ThedifferencebetweenthecoststotheHoldingCompanyofitsinvestmentintheSubsidiaryCompaniesoverthe

HoldingCompany’sportionofequityofthesubsidiariesisrecognizedinthefinancialstatementsasGoodwillorCapitalReserveasthecasemaybe.GoodwillarisenonconsolidationisshownasseparatelineiteminthebalancesheetunderAssetsandCapitalReserveonconsolidationisshownunderReserve&Surplus.

(vi) ThepolicyadoptedbySSAILforvaluationofInventoriesisenumeratedbelow:-(a) FinishedGoodsandStockinProcessofSugar-Atcostoratnetrealisablevaluewhicheverislower,thenet

realizablevalueofsugarincaseoffinishedgoodsstockoflevysugarisconsideredbasedonthelevypricenotifiedbytheCentralGovernment.

(b) Storeandsparesparts–Atcostarrivedatapplyingweightedaveragemethod.(c) Canecrop–AtnetrealisablevaluedeterminedonthebasisofestimatedyieldperhectareandInventoryof

Molasses,Bagasse,PressmudandBioCompostareconsideredatnetrealizablevalue.(vii)ForeignSubsidiaryconversion:Operationofforeignsubsidiaryhasbeenconsiderednonintegralforeignoperation

bythemanagementthusallassetsandliabilitiesareconvertedattheratesprevailingattheendoftheyearandRevenueitemshavebeenconsolidatedattheaveragerates.Exchangegain/lossarisingontranslationoffinancialstatementsofforeignsubsidiariesareshownunderthehead‘ForeignCurrencyTranslationReserve’intheCon-solidatedBalanceSheet.

(viii)InterestsinJointVenture(KIFTPL)hasbeenaccountedbyusingtheproportionateconsolidationmethodasperAccountingStandard27-“FinancialReportingofinterestsinJointVentures”notifiedbyCompanies(AccountingStandards)Rules,2006.



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 31.03.2016 31.03.2015 No’s No’s

KashipurHoldingsLimited 10,352,406 10,287,406

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 31.03.2016 31.03.2015 No’s No’s

Sharesoutstandingasatthebeginningoftheyear 30,961,500 30,961,500

Additions during the year - -

Deletionsduringtheyear - -

Sharesoutstandingasattheendoftheyear 30,961,500 30,961,500

d) Inlast5yearstherewasnoBonusIssue,buybackand/orissueofsharesotherforcashconsideration.

3. RESERVES AND SURPLUS

( ` in Lacs)

Asat Additions Deductions As at 01.04.2015 31.03.2016

CapitalReserve 679.33 30.00* - 709.33

CapitalReserveonConsolidation 220.19 - - 220.19

GeneralReserve# 10,714.15 - 114.01 10,600.14

StatutoryReserve 0.30 - - 0.30

SecurityPremium 3,958.36 - - 3,958.36

MollasesReserveFund 1.89 - - 1.89

ForeignCurrencyTranslationReserve (20.92) 33.30 - 12.38

ReserveforContingencies 200.00 - - 200.00

SurplusinStatementofProfit&Loss{Referfootnote(a)] 11,554.79 (4,912.49) - 6,642.30

Sub Total (a) 27,308.09 (4,849.19) 114.01 22,344.89

ForeignCurrencyMonetaryItemTranslationDifference

(DebitBalance) (699.01) (158.59) (857.60) -

Sub Total (b) (699.01) (158.59) (857.60) -

Total (a+b) 26,609.08 (5,007.78) (743.59) 22,344.89

Previousyear 34,149.21 (9,422.80) (1,882.67) 26,609.08



March 31, 2016 March31,2015

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

Openingbalance 11,554.79 20,419.28

Add:NetProfit/(Loss)aftertaxtransferredfromStatement

ofProfitandLoss (4,912.49) (8,864.49)

6,642.30 11,554.79

Net Surplus in the Statement of Profit & Loss 6,642.30 11,554.79

6,642.30 11,554.79

*RepresentprojectCapitalsubsidyreceivedduringtheyear.

#InviewofadoptionofComponenetAccountingasprescribedinCompaniesAct2013,depreciationoncomponentwhoseusefullifeexpiredpriorto01stApril2015haschargedtoGeneralReserve(netofdeferredtax`60.34Lacs)

4. LONG TERM BORROWINGS

( ` in Lacs)

Non-Current Portion Current Maturities

As at As at As at As at 31.03.2016 31.03.2015 31.03.2016 31.03.2015

SECURED LOANS

Rupee Term Loans

fromBanks 14,199.19 29,345.16 2,243.62 28,443.11

OtherthanBanks 2,589.53 2,448.29 252.10 258.93

ForeignCurrencyTermLoansfromBanks 3,233.49 7,751.02 - 15,919.84

20,022.21 39,544.47 2,495.72 44,621.88

UNSECURED LOANS

Loanfromrelatedparties(BodyCorporates) - - - -

Loanfromothers 1,451.04 523.70 - -

1,451.04 523.70 - -

Less:Amountdisclosedunderthehead

“OtherCurrentLiabilities”(NoteNo.10) - - 2,495.72 44,621.88

21,473.25 40,068.17 - -

( ` in Lacs)Notes to Consolidated Financial Statements



Notes to Consolidated Financial Statements

Notes: 1 The Term 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`28.77Lacs(PreviousYear`46.19Lacs)andloansfromothersof`56.43Lacs(PreviousYear` Nil)securedbyhypothecationofMotorVehiclespurchasedthereunderwhichisrepayableondifferentdates.Further,RupeeTermLoansfromothersincludes `845.65Lacs(PreviousYear`608.75Lacs)securedagainstbankguarantee.(readwithpara22&23)

3 TermLoanfrombankof`511.00Lacs(PreviousYear`4,654.47lacs),isrepayable1installmentof`511.00lacsinmay2017.

4 TermLoanfrombankof`3,336.00Lacs(PreviousYear`10,000.00Lacs),isrepayablein3quarterlyinstallmentsof`833.00LacscommencingfromApril2017andoneinstallmentof`837.00LacsinJanuary2018.





9 TermLoanfrombankof`Nil(PreviousYear`1,951.00lacs).





14 TermLoanfrombankof`364.00Lacs(PreviousYear`3,431.00Lacs),isrepayablein1installmentof`118.85LacsinJune2017and1installmentof`245.15LacsinSeptember2017.

15 TermLoanfrombankof`778.99Lacs(PreviousYear`4,374.98Lacs),isrepayablein1installmentinJune2016.

16 TermLoanfrombankof`1,626.00Lacs(PreviousYear`2,551.00Lacs), isrepayablein1quarterlyinstallmentsof`137.92Lacsand7equalquarterlyinstallmentscommencingof`212.58LacseachcommencingfromSeptember2016.

17 TermLoan frombankof`3,125.00Lacs(PreviousYear`8,750.00Lacs), is repayable in5equalquarterly installments is`625.00LacseachcommencingfromJuly2017.



20 TermLoan frombankof` 3,233.49 Lacs (USD48.80Lacs) (PreviousYear` 10,246.44Lacs (USD170.25Lacs), is repayable in11monthlyinstallments,8equalmonthlyinstallmentsof`271.67Lacs,3equalmonthlyinstallmentsof` 353.38LacscommencingfromMay2017.

21 TermLoanfrombankof`2,500.00Lacs(PreviousYear`Nil),isrepayablein8equalquarterlyinstallmentsis`312.50LacseachcommencingfromFeb2017.

22 TermLoanfromDBTBio-pharma`250.00Lacs(PreviousYear`350.00Lacs)isrepayablein5equalhalfyearlyinstallment.

23 TermLoanfromDBTBio-pharma`595.65Lacs(PreviousYear`258.75Lacs)isrepayablein10equalhalfyearlyinstallmentaftercompletionoftheproject.

24 TermloanfromBanksof`1,778.98Lacs(Previousyear`1,778.98Lacs)inrespectofsubsidiarycompanyrestructured,isrepayablein8equalquarterlyinstallmentsof 44.47Lacseach,8equalquarterlyinstallmentsof 88.95Lacseach&4equalquarterlyinstallmentsof 177.89LacseachstartingfromYear2016.Theloanissecuredbyafirstparipassuchargeontheentirefixedassetsofthecompanypresentandfutureandsecondparipasuchargeoncurrentassetsofthecompanybothpresent&future.

25 TermloanfromBanksof`208.33Lacs(Previousyear` 1,250.00Lacs)inrespectofsubsidiarycompany,isrepayablein1installmentof`208.33Lacs.TheloanissecuredbyafirstparipassuchargecreatedonmovableandimmovablepropertiesbothpresentandfutureofCompany’splantsituatedatsaharanpurinstateofUttarPradesh.

26 TermloanfromBanksof`18.85Lacs(Previousyear`18.85Lacs)inrespectofsubsidiarycompany,isrepayablein2quarterlyinstallment1stof`10.11Lacsand2ndquarterlyinstallmentof`8.74Lacs.Theloanissecuredbyafirstparipassuchargecreatedonmovable(includingbookdebts)andimmovablepropertiesbothpresentandfutureofCompany’splantsituatedatsaharanpurinstateofUttarPradesh.

27 TermLoanfromBanksof`761.00Lacs(Previousyear`761.00Lacs)inrespectofsubsidiarycompany,isrepayablein36monthlyinstallmentsof`21.14Lacseachstartedfrom2016.TheLoanissecuredbyfirstparipasuchargeonfixedassetsoftheCompany.

28 {Theaboveloans(24to27)issecuredbycorporateguaranteesofIndiaGlycolsLtd.(TheHoldingCompany)}

29 TermLoanfromOthersof`Nil(Previousyear`92.55Lacs).

30 TermLoan fromOthers of` 1,740.42 Lacs (Previous year` 1,740.42 Lacs ) in respect of subsidiary company, is repayable in 5 equal yearlyinstallmentsof`348.08Lacseachstartedfromyear2017.

31 TermLoanfromOthersof`199.11Lacs(Previousyear`265.50Lacs)inrespectofsubsidiarycompany,isrepayablein3equalyearlyinstallmentsof`66.38Lacseachstartedfromyear2016.

32 Theaboveloans(29to31)isalsosecuredbybankguarantee,whichisfurthersecuredbycorporateguaranteesofIndiaGlycolsLtd.(TheHoldingCompany)

33 LoanfromOthersof`1451.04Lacs(Previousyear`523.70Lacs)inrespectofsubsidiarycompany,ispayableafteraperiodof3yearsfromtherespectivedateofloans.

34 TermLoanfacilitiesfromBankof`Nil(PreviousYear`480.63Lacs)

35 IndusIndBankLtdhassanctionedTermLoanfacilityof 4,000.00Lacsandworkingcapitalfacilityof 500.00LacsduringthecurrentfinancialyeartoJointVentureCompany.Companyhasavailedpartialdisbursementof`2,875.00Lacson15thMarch2016outofthistermloansanctionbyIndusIndBankLimited.




5. DEFERRED TAX LIABILITIES (NET)

( ` in Lacs)

As at As at 31.03.2016 31.03.2015

PursuanttotheAccountingStandardon“AccountingfortaxesonIncome”(AS-22)deferredtaxliability/assetsareas:Deferred Tax Assets :-AmountcoveredU/S43B 368.70 377.97Provisionfordoubtfuldebts/Advances 5,068.55 4,672.63UnabsorbedDepreciation 10,189.80 7,187.90BusinessLoss 569.82 569.82Others 323.75 236.19Gross Deferred tax Assets 16,520.62 13,044.51Deferred Tax Liabilities :-Accelerated depreciation 18,086.63 17,279.92Others 1,008.13 639.20Gross Deferred tax Liability 19,094.76 17,919.12

Net Deferred Tax Liability 2,574.14 4,874.61

6. OTHER LONG TERM LIABILITIES

( ` in Lacs)

As at As at 31.03.2016 31.03.2015InterestAccruedbutnotdueonborrowings 370.94 321.06RetentionMoney 67.51 44.35AdvanceFromCustomers* 65,377.68 -Securitydeposits 42.38 42.56 65,858.51 407.97

*Longtermexportadvanceof`72,641.64Lacsreceivedfromacustomerwithsupplyscheduleoverperiodof10years.ExportadvancehasbeensecuredbyGuaranteegivenbyStateBankofIndia(SBI)tothecustomer,whileotherexportperformancebankgurantee(EPBG)memberbankshavegivencounterguranteeinfavorofSBI.SuchguaranteearesecuredbyfirstchargeonthefixedassetsandsecondchargeonthecurrentassetsoftheCompanyonparipassubasis(noteno40).

7. PROVISIONS

( ` in Lacs)

Long - Term Short - Term As at As at As at As at 31.03.2016 31.03.2015 31.03.2016 31.03.2015Provision for employee benefitsProvisionforGratuity - - 170.75 281.80ProvisionforLeaveEncashment 561.27 519.95 194.21 199.89 561.27 519.95 364.96 481.69Others:ProvisionforFringeBenefitTax{Netofadvancetax`Nil)(PreviousYear`38.65Lacs)} - - - 0.26ProvisionforWealthTax - - - 16.99 - - - 17.25 561.27 519.95 364.96 498.94




8. SHORT TERM BORROWINGS

( ` in Lacs)

As at As at 31.03.2016 31.03.2015

SECURED LOANSLoansrepayableondemandfromBanks:

BuyersImportCredit* 34,949.63 48,713.30

WorkingCapitalLoans* 59,578.17 86,516.07

94,527.80 135,229.37

UNSECURED LOANSShortTermLoansfromBanks 7,082.14 6,529.73

7,082.14 6,529.73

101,609.94 141,759.10

* WorkingCapitalLoansfromBanksaresecured/tobesecuredbywayofhypothecationofbookdebtsandstocksincludingin-transitandotherspecifiedmovablepropertiesandsecondchargeonall immovablepropertiesoftheCompany.BuyersCreditfacilityissecuredagainstnon-fundbasedfacilitysanctionedtotheCompany.

9. TRADE PAYABLE

( ` in Lacs)

As at As at 31.03.2016 31.03.2015

PayabletoMicroEnterprisesandSmallEnterprises 36.21 3.49

PayabletoOthers 48,007.67 24,649.47

48,043.88 24,652.96

10. OTHER CURRENT LIABILITIES

( ` in Lacs)

As at As at 31.03.2016 31.03.2015

Currentmaturitiesoflongtermborrowings(NoteNo4) 2,495.72 44,621.88

Interestaccruedbutnotdueonborrowings 343.37 385.80

Duties,taxesandotherstatutorydues 2,039.66 1,801.74

CapitalPayables 2,392.38 2,205.82

AdvancefromCustomers 7,492.81 6,111.02

Retention money 272.95 208.73

Interestaccruedanddueonborrowings 39.30 88.72

Expensespayable(IncludingMTMonderivativecontracts) 3,007.31 1,770.79

OtherPayables(RefNoteno37(a)) 15,551.32 15,643.63

Investoreducation&protectionfundshallbecreditedbythefollowingamountswhendue:

(i)UnclaimedDividends 90.09 111.91

(ii)Unclaimedmatureddeposits 1.32 3.36

(iii)Unclaimedinterestonabove(ii) 0.53 1.09

33,726.76 72,954.49




11. Fixed Assets

( ` in Lacs)

Notes:

*(i)AdditiontoPlantandMachineryincludesforeignexchangefluctuationdifferencearisingunderAS-11(Theeffectofchangesinforeignexchange

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

Companies(AccountingStandards)(SecondAmendment)Rules2011.

*(ii)Includescapitalisationof:

(a) Financecost:Plant&Machiery`138.95Lacs(PreviousYear`651.82Lacs).

(b) Exchangedifference:PlantandMachineryincludesCWIP`374.45Lacs(PreviousYear` 993.82Lacs).(Unamortisedamount`4,127.32Lacs

(PreviousYear`3,880.59Lacs)

** includesdepreciationchargedtoGeneralreserve`174.35Lacs(Previousyear`718.52Lacs),refernoteno39.AlsoreferNoteNo-38regarding

impactofrevisionofusefullife.

# Grossblockincludes`137.30Lacs(PreviousYear`117.95Lacs)securedbyhypothecationagainstloan

@GrossBlockincludes`79.77LacsPendingtransferoftitleinthenameoftheCompany.

Note:

OpeningGrossBlock&AccumulateddepreciationofForeignSubsidiary,IGLChemPTELIMITED,Singapore,&IGLChemUSALLC,USAason31st

March,2016isreinstatedasperAS-11andamountof`Nil(PreviousYearRsNIL)(NetofdepreciationofRsNil,PreviousYear`Nil)isadjustedin

ForeignCurrencyTranslationReserve.

Description Gross Carrying Amount Depreciation/ Amortization Net Carrying Amount

As at 01.04.2015

Addi-tions*

Sales/Other

Adjust-ments

As at 31.03.2016

As at 01.04.2015

For the year**

Sales/Other

Adjust-ments

As at 31.03.2016

As at 31.03.2016

As at 31.03.2015

Tangible assets

FreeholdLand@ 1,762.33 0.89 - 1,763.22 - - - - 1,763.22 1,762.33

Leasehold Land 836.52 - - 836.52 104.02 10.19 - 114.21 722.31 732.50

Buildings@ 9,920.59 318.43 - 10,239.02 2,801.31 296.31 - 3,097.62 7,141.40 7,119.28

PlantandMachinery 180,012.51 5,648.67 - 185,661.18 79,814.31 5,170.96 - 84,985.27 100,675.91 100,198.20

OfficeEquipment 2,125.57 71.01 13.84 2,182.74 1,668.28 97.95 11.09 1,755.14 427.60 457.29

FurnitureandFixtures 1,405.15 1,117.08 26.88 2,495.35 642.60 201.16 22.14 821.62 1,673.73 762.55

Vehicles# 1,046.52 102.26 136.10 1,012.68 602.39 92.58 72.44 622.53 390.15 444.13

Total (A) 197,109.19 7,258.34 176.82 204,190.71 85,632.91 5,869.15 105.67 91,396.39 112,794.32 111,476.28

Previousyear 206,114.40 6,948.76 15,953.97 197,109.19 78,435.45 9,405.98 2,208.52 85,632.91 111,476.28

Intangible assets

Computersoftware 853.11 0.41 - 853.52 776.21 61.38 - 837.59 15.93 76.90

Total (B) 853.11 0.41 - 853.52 776.21 61.38 - 837.59 15.93 76.90

Previousyear 814.32 38.79 - 853.11 584.35 191.86 - 776.21 76.90

Capital work-in-progress 19,995.20 16,137.61

Intangible assets under development

50.17 48.90



12. INVESTMENTS



Particulars

NominalValue

As at 31.03.2016

As at 31.03.2015

Non-Current Investments

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

Investment in Equity InstrumentsUnquoted, Fully paid up - Subsidiary Companies

Nil*(PreviousYear50,000)EquitySharesofIGLInfrastructurePrivateLtd.

Rs.10 - 5.00

- 5.00

Quoted, fully paid up - Others

211,360(PreviousYear211,360)EquitySharesofIDBIBankLtd. Rs.10 105.00 105.00

105.00 105.00

105.00 110.00

Investment in Preference Share (Unquoted, fully paid up)

4,68,000 (Previous year 4,68,000) 15% Redemable Non-cumulativePreferenceSharesofHindustanWiresLtd.

Rs 100 468.00 468.00


22,000 (Previous year 22,000) 15% Redemable Non-cumulativePreferenceSharesofHindustanWireLtd.

Rs 100 22.00 22.00


290.00 290.00

Total Non - Current investments 395.00 400.00

AggregatedbookvalueofUnquotedinvestment 290.00 295.00

Aggregatedbookvalueofquotedinvestment 105.00 105.00

Marketvalueofquotedinvestments 146.90 150.07

AggregateprovisionmadeforDiminuitioninvalueofInvestments 200.00 200.00

*ReferNoteno35tofinancialstatements.




13. LONG TERM LOANS AND ADVANCES(Unsecured,consideredgoodunlessstatedotherwise)

( ` in Lacs)

As at 31.03.2016

As at 31.03.2015

CapitalAdvances 3,414.96 2,967.58

SecurityDeposits@ 3,424.58 2,750.48

InterCorporateDeposits# - 15.00

OtherLoans&advances* 155.74 83.15

6,995.28 5,816.21

*Prepaidexpensesandloanstoemployees #Includesloanstorelatedparties`Nil(Previousyear`15Lacs) @ Includes`1563.85 lacs (PreviousYear`980.00Lacs)securitydeposit toPrivatecompanies inwhichdirector/directorsofcompanyisdirectorandarealsorelatedparties.

14. OTHER NON-CURRENT ASSETS

( ` in Lacs)

As at

31.03.2016As at

31.03.2015

Bankbalanceindepositaccount*(ReferNoteNo.17) 3,731.68 56.53

InterestReceivable 249.17 13.76

Others

Upfrontfee,processingcharges,etcamortisedovertenureofloans 284.17 244.00

4,265.02 314.29

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowingsmaturingafter12months.

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

( ` in Lacs)

As at

31.03.2016As at

31.03.2015

RawMaterials* 16,677.83 17,249.79

Work-in-Process 6,454.46 4,618.51

FinishedGoods** 12,667.37 10,515.69

Stores and Spares 16,716.27 16,293.53

ResidueProduct 64.76 2.21

Scrap 3.24 3.26

Loose Tools 27.63 25.74

52,611.56 48,708.73

*Includesintransit`5,563.41Lacs(PreviousYear` 923.16Lacs)**Includesintransit` 264.65Lacs(PreviousYear`20.83Lacs)



16. TRADE RECEIVABLES(Unsecured,consideredgoodunlessstatedotherwise)

( ` in Lacs)


As at31.03.2016

As at31.03.2015

(a) Outstanding for a period exceeding six months from the date they are due forpayment

-Consideredgood(ReferNoteNo37(a)) 15,427.53 14,294.12

-Doubtful 421.35 151.35

(b)Other(ConsideredGood) 21,420.60 29,425.69

37,269.48 43,871.16

Less:ProvisionforDoubtfuldebts 421.35 151.35

36,848.13 43,719.81

17. CASH AND BANK BALANCES

( ` in Lacs)

As at31.03.2016

As at31.03.2015

(a) Cash and Cash equivalents(i)CashinHand 52.89 67.25

(ii)BalancewithBanks

-OnCurrentAccounts 954.69 2,116.64

1,007.58 2,183.89

(b) Other bank balances-InFixedDepositAccounts*-Current 3,479.85 13,896.05

-InFixedDepositAccounts*-Noncurrent 3,731.68 56.53

-OnDividendAccounts 90.09 111.91

8,309.20 16,248.38

Less:AmountdisclosedunderOtherNonCurrentAssets(NoteNo14) 3,731.68 56.53

4,577.52 16,191.85

*Pledgedwithbank/GovernementAuthoritiesasmarginmoney/securityagainstguarantees,packingcreditfacilityandotherborrowings.




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

( ` in Lacs)

As at31.03.2016

As at31.03.2015

DepositswithNonBankingFinancialInstitutions 1,429.00 1,429.00

Interestreceivable 237.65 771.56


BalancewithExciseandAuthorities 15,189.01 9,284.85

DepositswithGovernmentDepartments&Others 184.24 168.83

MATCreditEntitlements 7,665.95 8,075.74

Advance Income Tax/ Tax deducted at source (net ofincome taxprovisionof`4,076.08Lacs,PreviousYear`4,076.08Lacs)

1,111.32 929.41

ReceivablefromsaleofRentalbusinessdivision - 18,420.00

Prepaidexpenses 5,100.88 1,581.60

OtherAdvances:

Advancesrecoverableincashorinkindorforvaluetobereceived

23,629.34 26,739.37

Doubtfuladvances/loans 395.56 71.97

24,024.90 26,811.34

Less:Provisionfordoubtfuladvances/loans (395.56) 23,629.34 (71.97) 26,739.37

56,801.87 69,043.49

19. OTHER CURRENT ASSETS

( ` in Lacs)

As at31.03.2016

As at31.03.2015

Upfrontfee,processingcharges,etcamortisedovertenureofloans

1,264.45 468.05

1,264.45 468.05

TheCompanyhasduringtheyearamortisedtheanciliarycostincurredinconnectionwiththeborrowingoverthetermoftheloan.




20. REVENUE FROM OPERATIONS

( ` in Lacs)

2015-16 2014-15

Sales of Products

Glycols 69,994.05 70,599.53

E.O.Derivatives 91,892.41 107,955.67

GuarGumPowderandderivatives 2,576.16 11,837.37

EthylAlcohol(Potable) 115,020.19 69,111.92

Industrial Gases 3,834.03 3,758.33

Sugar 622.43 2,041.86

Saleoftradedgoods

ChemicalandoilProducts 29,737.74 35,483.49


Others 7,925.43 7,228.28

323,479.61 309,311.37

Less:ExciseDuty 95,239.20 57,173.58

228,240.41 252,137.79

Sales of ServiceRent - 1,408.55

Others 743.14 669.88

743.14 2,078.43

Other Operating Revenue

Provisionnolongerrequiredwrittenback/SundryBalanceswrittenback 678.04 214.01

MiscellaneousIncome 2,914.96 3,519.55

3,593.00 3,733.56

Total Revenue from operations 232,576.55 257,949.78

21. OTHER INCOME

( ` in Lacs)

2015-16 2014-15

Interest Income 326.73 467.26

DividendonLongtermInvestment 1.59 7.96

Rent 34.47 -

ExchangeFluctuationloss(NetofLossRs.0.36Lacs,previousyearRs.Nil) 0.15 -

InsuranceClaimRecoverable - 2,407.00

GainonsettlementwithJVpartner - 621.50

ProfitonsaleofNon-Currentinvestment 295.00 684.74

ProfitonsaleofFixedAssets 19.32 38.40

677.26 4,226.86




22. COST OF MATERIALS CONSUMED

( ` in Lacs)

2015-16 2014-15

RawMaterialsconsumed

i)Molasses 25,648.83 34,928.44

ii)ChainStarters 11,806.99 18,459.09

iii)SpecialDenaturedSpirit 57,501.57 53,177.15

iv)GuarsplitandGuarSeeds 1,587.12 9,154.20

v)ProductionChemicals&Others 12,370.79 10,777.14

vii)PackingMaterial 15,009.03 12,151.76

Total 123,924.33 138,647.78

23. PURCHASE OF STOCK IN TRADE

( ` in Lacs)

2015-16 2014-15

ChemicalandOilProducts 26,409.26 32,934.30

Molasses 209.92 -

26,619.18 32,934.30

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

( ` in Lacs)

2015-16 2014-15

CLOSING STOCKFinished Goods- Glycols 4,807.79 1,982.04 -E.O.Derivatives 7,114.20 7,084.24 -EthylAlcohol(Potable) 407.46 470.91 -GuarGumPowderandderivatives 154.88 58.60 -GuarChuri 0.50 0.41 - Industrial Gases 23.23 24.72 - Sugar - 593.07 -Molasses&Bagasse 7.25 7.25 -AnhydrusAlcoholandRectifiedSprit 14.95 21.73 -Biocompost&Pressmud 1.77 4.80 -HerbalProducts 135.34 267.92 Total Finished Goods 12,667.37 10,515.69 Work-in-Process 6,454.46 4,618.51 Residue Product 64.76 2.21

19,186.59 15,136.41




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

( ` in Lacs)

2015-16 2014-15

OPENING STOCKFinished Goods- Glycols 1,982.04 2,586.72

-E.O.Derivatives 7,084.24 7,414.56


-GuarGumPowderandderivatives 58.60 1,232.94



- Sugar 593.07 3,003.32

-Molasses&Bagasse 7.25 19.99

-AnhydrusAlcoholandRectifiedSprit 21.73 44.97

-Biocompost&Pressmud 4.80 8.93



Work-in-Process 4,618.51 4,618.72


15,136.41 19,693.05

Less:DifferentialExciseDutyprovidedonStocks. 198.30 (178.51)

Changeininventoriesoffinishedgoods,work-in-progressandStock-in-trade (3,851.88) 4,378.13

25. EMPLOYEE BENEFITS EXPENSE

( ` in Lacs)

2015-16 2014-15

Salaries,Wages,Allowances,etc. 7,435.40 7,870.44

ContributiontoProvidentandotherFunds 584.52 576.25

Employees'WelfareandotherBenefits 753.98 767.58

Total 8,773.90 9,214.27

26. FINANCE COSTS

( ` in Lacs)

2015-16 2014-15

InterestonFixedLoans 4,215.15 9,042.45

OtherInterest 6,696.16 6,164.96

OtherBorrowingCost

FinancialCharges 3,522.35 2,659.97

14,433.66 17,867.38

Less:InterestReceivedontemporarydeposits 630.90 1,528.65

13,802.76 16,338.73




27. OTHER EXPENSES

( ` in Lacs)

2015-16 2014-15

StoresandsparesConsumed 6,258.74 6,106.13

PowerandFuel 30,160.29 33,594.40

RepairsandMaintenance

-Buildings 341.24 505.04

-PlantandMachinery 1,832.55 1,928.77

-Others 622.42 483.67

Rent 709.36 123.98

RatesandTaxes 1,250.38 1,265.98

TravellingandConveyance 895.45 945.78

Insurance 734.16 511.62

Directors'sittingFee 11.62 12.20

Donation - 31.40

CommissiontoSellingagents 1,973.16 1,292.52

Freightforwardingandothers(Netofrecoveryfromcustomers/provisionwrittenback 1,004.46Lacs,Previousyear 1,003.42Lacs)

6,998.48 7,758.01

ExchangeFluctuationloss(Netofgain`Nil,previousyear` 0.40Lacs)

- 1.96

LossonsaleofCurrentInvestment - 0.63

CommodityDerivativeLoss - 21.59

Provisionfordoubtfuldebts 594.00 91.03

Baddebtswrittenoff - 37.34 -

Less:Provisionfordoubtfuldebtswrittenback - 3.00 34.34

LossonSale/DiscardofFixedAssets 31.42 34.89

AmortisationofForeignCurrencyMonetaryItemTransactionDifference

857.60 2,355.19

WealthTax - 26.36

Legal&Professional 2,566.95 610.78

Printing&Stationery,Postage,Telephone,security,andotherMiscellaneousExpense

3,126.87 2,649.60

58,964.69 60,385.87



28. AccountingPoliciesandothernotestotheaccountsofthefinancialstatementsoftheCompanyanditssubsidiariesaresetoutintheirrespectivefinancialstatements.

29. (A)ContingentLiabilitiesnotprovidedfor(AscertifiedbytheManagement):

(i) InRespectof:- (`inLacs)

Particulars As onMarch 31, 2016

As onMarch31,2015

CentralExcise/StateExcise@ 5,613.83 22,688.99

Customs 1,235.12 1,025.70

ServiceTax 245.62 70.76

SalesTax 3,501.65 2,890.46

Othermatters 278.37 958.75

Total 10,874.59 27,634.66

@Excludingshowcausenotices(SCNs),wheremanagement isconfidentthatonmeritsSCNswillbedroppedandalsoaslegallyadvisedpossibilityofanoutflowoffundisremote.

(ii) In respect of subsidiary company (SSAIL), claims against the Company not acknowledged as debts`140.33Lacs(PreviousYear:`116.79Lacs).

(iii) BillsdiscountedwithBanks`1,703.13Lacs(PreviousYear:`3,829.60Lacs).(iv) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a

subsidiarycompany)amountingto`10,845.38Lacs(Previousyear`12,045.43Lacs)(excludingpenalinterest,penaltyetc).(ReferNoteNo.34below).

(v) Inrespectofsubsidiarycompany(SSAIL),RecoveryChargesclaimedbyS.D.M.Behattowardspaymentofcanedues`66.82Lacs(PreviousYear`66.82Lacs)includingtheinterestoncanedues` 46.89Lacs(PreviousYear`46.89Lacs).

(vi) PendingfinaldisposalbytheAppellateTribunal(CESTAT),CentralExcise,SSAILhasnotreversedinthebooksofaccountCENVATcredittaken,inrespectofcertaininputsandcapitalgoodsandgodownrentfor` 15.21Lacs(PreviousYear`15.21Lacs)initiallydisallowedbyauthorities,however,thesamehasbeenreversedintheExciserecordsandthesameisincludedinCENVATreceivables.

(B) CustomdutysavedonimportofrawmaterialunderAdvanceLicensependingfulfillmentofexportobligationisamounting to `2,807.51Lacs(PreviousYear`3,026.13Lacs).

Themanagementisoftheviewthatconsideringthepastexportperformanceandfutureprospectsthereiscertaintythatpendingexportobligationunderadvancelicenses,willbefulfilledbeforeexpiryoftherespectiveadvancelicenses.Accordinglyandon“GoingConcernConcept”basisthereisnoneedtomakeanyprovisionforcustomdutysaved.

(C) Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor(netofadvancesof`3,414.96Lacs,PreviousYear`2,967.58Lacs)are` 6,516.78Lacs(PreviousYear`7,487.02Lacs).

30. Intheearlieryears,theStateGovernmentofUttarPradesh(UP)hadimposedalevyoflicensefeeontransferofalcoholfromthedistillerytothechemicalplant.ThelevywaschallengedbytheCompanyintheHon’bleSupremeCourtandonOctober18,2006thematterwasfinallydecidedbyTheHon’bleSupremeCourt in favourof theCompany.Accordingly,Companyhadfiledanapplicationforrefundofamountpaidof 507.05Lacs(PreviousYear`507.05Lacs)(shownasrecoverableundertheheadShortTermLoansandAdvances)withStateGovernmentofUttarakhand,whichisstillpendingforrefundoftheamount.

31. Intheearlieryears,theStateGovernmentofUttarakhandhadleviedExportPassFeeonENA/R.S.exportoutsideIndia.Thematter isfinallydisposedofbyHon’bleHighCourtofUttarakhandvide itsOrderdated9thJanuary,2012andhasdeclaredthelevyofsaidfeeasunsustainableandirrecoverable.Subsequently,onJune8,2012,videUttarakhandExcise(Amendment)Act,2012,UttarakhandGovernmentretrospectivelyrevivedoldnotificationrelatingtoimpositionofexportfeeonENAandR.S.TheCompanyfiledWritPetitionchallengingtheabovesaidnotificationandvideorderdatedSeptember12,2012 theHon’bleHighCourtofUttarakhandhasgrantedstayand restrainedState from imposingexport fee.Amount of` 106.15Lacs (PreviousYear` 106.15Lacs) paidunderprotestisshownasrecoverablefromStateGovt.ofUttarakhand,undertheheadShortTermLoansandAdvances.

32. Thesubsidiarycompany,IGLFinanceLimited,hadinvestedfundsforshorttermincommodityfinancingcontractsofferedbyNationalSpotExchangeLimited(NSEL).NSELhasdefaultedinsettlingthecontractsonduedates.However, considering theproposalof thearrangementofmergerofNSELwithFinancialTechnologies (India)Limited(FITL)asannouncedbytheCentralGovernmentandothermeasurewhichhavesofarbeentakenforand



pendingbeforetheGovt.andotherauthorities,legalactionstakenbythesubsidiarycompany,themanagementisconfidentof recoveryof thedues fromNSELover theperiodof time.Accordingly,against totalexposureof` 14,444.43Lacs(PreviousYear`14,444.43Lacs),noprovisionhasbeenconsiderednecessaryatthisstagebythesubsidiarycompanyandhencetreatedasgoodandfullyrecoverable.

33. Companyhasreceivedlettersdated30thOct2014and05thMay2015fromNationalStockExchangeofIndia(NSE),whereintheCompanyhasbeenadvisedtoreinstateitsfinancialsw.r.t.qualificationraisedbythestatutoryauditorofthecompanyfortheyearsFY2012-13oninvestmentsandloanstoSSAILandtosuitablyrectifythequalificationraisedfortheyearFY2013-14bythestatutoryauditorw.r.t.investmentandloantoIGLFLrespec-tively.Fortheabovematters,theCompanyhassubmittedreplybasedonlegaladvice

34. CentralBankofIndia(CBI)videitsletterdated28.05.2014hadissuedanoticeunderSection13(2)ofSARFAESIAct2002toSSAILandIGL.ThesaidnoticewasrepliedbySSAILandIGLhaschallengedthelegalityofissuanceofsuchnotices.CBI,thereafter,on11.09.2014hadissuedanothernoticeunderSection13(4)ofSARFAESIonSSAILandIGL,whichhasbeenchallengedinDRT,Lucknow.Asperthelegalopinion,thenoticeisnotvalidsinceSSAILhasalreadybeenregisteredwithBIFRassickCompany.MeanwhileBIFRvideitsorderdated24.09.2015hasrejectedtheappealofCBIforseekingrecoverycertificate,againsttheorderofBIFR,CBIhasfiledanappealbeforeAppellateAuthorityforIndustrialandFinancialReconstruction(AAIFR)whichispending.

35. Duringtheyear,theCompanyhaddivesteditsentirestakeof`5Lacs(50,000equityShareCapital)inwhollyownedsubsidiaryIGLInfrastructurePrivateLimitedforconsiderationof`300.00Lacsandfurtherinvested`64.17LacsinequitycapitalofwhollyownedsubsidiaryIGLChemInternationalUSALLC.

36. TheCompanyhadfiledaclaiminearlieryearof`4,815.06Lacs(includingreinstatementloss`622.63Lacs)withtheinsurancecompanyforthereinstatementofmachineryaswellaslossincurredduetobusinessinterruptiononaccountoffireatKashipurPlantandonprudentbasisaccountedfor`3,029.63Lacs(includingreinstatementloss `622.63Lacs)inpreviousyear.AgainstthisinP.Y.`348.64Lacs(sinceBalanceSheetDatetheCompanyhasalsoreceived`748.80Lacs)hasbeenreceivedandbalanceof`2,680.99LacsbeingreceivablefromtheInsuranceCompanyisshownundershorttermloans&advances,wheremanagementisconfidentaboutrecoveryoffullamountandhenceconsideredgood.

37. (a)Othercurrentliabilitiesincludesprovisionamountingto`14,167.57Lacs(tillPreviousYear`13,421.55Lacs)madeagainstspecialdiscountallowedtoanoverseasparty(ReferNoteNo.48(c)),pendingreceiptofapprovalofRBI.

(b)Balancesofcertainreceivable,payable,(includingofpartystatedinpara(a)above)loansandadvancesaresubjecttoconfirmationandreconciliation.

38. Duringthecurrentyear,ParentCompanyhasupwardrevisedtheusefullifeofcertainclassoffixedassets(plant&machinery)basedontechnicalstudyandassessmentdonebyanexternaltechnicalvalueraswellasbasedoninternalassessmentcarriedoutbythemanagement.TheCompanybelievesthattheusefullifeascertifiedbyexternaltechnicalvaluerbestrepresenttheperiodoverwhichCompanyexpectstousetheseassets.Hadtherenotbeenanychangeintheusefullivesofthecertainplant&machinery,thedepreciationfortheyearwouldhavebeenhigherby`2,487.70Lacs.

39. Duringthecurrentyear,TheParentCompanyhascompletedtheprocessofComponentisationoffixedassetsasprescribedinpartIIofTheCompaniesAct2013.Theimpactofcomponentaccountinghastakenplacew.e.f01stApril2015andaccordinglythedepreciationexpensesforthequarterandyearended31stMarch2016ishigherby`483.45Lacs.FurtherbasedontransitionalprovisionprovidedinNote7(b)ofScheduleII,anamountof`114.01Lacs(netofdeferredtaxof`60.34Lacs)onaccountofassetswhoseusefullifeisalreadyexhaustedason1stApril2015havebeenadjustedtoGeneralReserveduringtheyearendedMarch31st,2016.

40. OutofadvanceexportproceedswhichtheCompanyhasraisedduringtheyearof`72,641.64Lacs(USD114Million)(noteno6)certainamountoflongtermdebtandworkingcapitalhasbeenpaid/reduced.

41. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies(Accounting Standards) (Second Amendment) Rules 2011,the Company continued its policy, as exercised infinancialyear2008-09,theoptionofadjustingexchangedifferencesarisingonreportingoflongtermforeigncurrencymonetary items related toacquisitionofdepreciablecapitalassets in thecostof theassets tobedepreciatedover thebalance lifeof theassetsandother long termmonetary item in the“ForeignCurrencyMonetary ItemTranslationDifference”tobeamortisedovertheperiodofloan.Accordingly:(a)Exchangedifferences(gain)/lossrelatingtolong-termmonetaryitems,insofarrelatedtoacquisitionofdepreciablecapitalassets,arisingduringtheyear amounting to `371.58Lacs(PreviousYear`983.59Lacs)(netofdepreciation` 2.87Lacs,PreviousYear` 10.23Lacs)adjustedtothecostoffixedassets,and(b)relatingtootherlong-termmonetaryitemsarisingduringthe year amounting to `Nil(PreviousYear`237.22Lacs)(Netofamortizationof`158.59Lacs,PreviousYear` 541.28Lacs)areadjustedto“ForeignCurrencyMonetaryItemTranslationDifference”.Ason31stMarch2016,un-amortizeamountof`4,127.32Lacsand`Nil(PreviousYear`3,880.59Lacsand`699.01Lacs)isincludedinPlant&Machinery&CWIP respectivelyunderNote11and inForeignCurrencyMonetary ItemTranslationDifferenceAccountunderNote3respectively.



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

(ii) SpecializedComputerSoftwareisamortisedoveritsusefullifeof6yearsonSLMbasis43. Inrespectofsubsidiarycompany(SSAIL):-

i) (a) SSAIL is inprocessofupdating thefixedassets recordsandnophysical verificationofFixedAssetshas been carried out accordingly difference between the book and physical inventory could not beascertained.

(b) Inviewofthereasonsstatedin(a),depreciationiscalculatedonestimatedbasis.Furthermanagementis inprocessofassessmentof itemwisedetailsofdepreciationonfixedassetsand in theopinionofmanagementtherewillnotbematerialimpactonfinalassessment.

ii) Inventoryoffinishedgoods,rawmaterials,storesandspareshasbeentaken/valuedandascertifiedbythemanagementascertainsubsidiaryrecordsareinprocessofupdation.Inviewoftheadequatesecurityar-rangements,managementisoftheviewthattherewillnotbeanymaterialdiscrepanciesbetweenbookandphysicalstockofinventoriesandfixedassetsoncompletionofphysicalverification.

iii) Noprovisionagainstnon-movinganddamaged/oldinventoryoffinishedgoods,rawmaterialsandstoresandspareshasbeenconsiderednecessarybythemanagement(readwithnoteno.(i)&(ii)above).

iv) TheauditorofSSAILhasdrawnattentiononInternalFinancialcontroloverFinancialReporting(IFCoFR),inrespectofmatterstatedinNoteno.44,45and43(i)(a).

44. InaccordancewiththeAccountingStandard(AS-28)on“ImpairmentofAssets”issuedbytheInstituteofCharteredAccountantsofIndia,inviewofthemanagementwithrespecttoSSAIL,noimpairmentlossonitsFixedAssets[includingCapitalWorkinProgressof`1,368.38Lacs.(PreviousYear`1368.38lacs)andCapitalAdvanceof` 708.27lacs(PreviousYear`708.27lacs)]isconsiderednecessaryatthisstage,asitsexpectedrecoverablevalueismorethanitscarryingvalue.

45. Inrespectofasubsidiarycompany(SSAIL),balancesofreceivables,payables,banks(includingfixeddepositswithbanks), loans&advances (includingcapitaladvances), current liabilitiesandprovisionsare inprocessofconfirmationand/or reconciliation.Companyhas initiated furthersteps tostrengthen the internalcontrol in thisregardandthistobereadwithnoteno.43.

46. RelatedPartiesDisclosure(Asidentifiedbythemanagement):(i) Relationship A.SubsidiaryCompany - IGLInfrastructurePrivateLimited(IGLInfra)(Ceasedon14.09.2015) B.KeyManagementPersonnel&theirRelatives - U.S.Bhartia(ChairmanandManagingDirector) - M.K.Rao(ExecutiveDirector) - RakeshBhartia(ChiefExecutiveOfficer) @ - AnandSinghal(ChiefFinancialOfficer) @ - LalitSharma(CompanySecretary)(Ceasedon31.05.2015) @ - KapilBhalla(CompanySecretary)(w.e.f.24.06.2015) @ C.RelativesofKeyManagementPersonnel - PragyaBhartia - JayshreeBhartia - AnandSinghal(HUF) @ - RakeshBhartia(HUF) @ - SmitaBhartia @ - AlpnaSharma(Ceasedon31.05.2015) @ - GeetaBhalla @ D.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. - IGLInfrastructurePrivateLimited.(IGLInfra)(w.e.f.15.09.2015) @inaccordancewithCompaniesAct,2013.



(ii) DetailofTransactionswithrelatedparties:

Related Party Transaction Summary

Significant Influence

Key Managerial Person

Relative of KMP

Subsidiary

2016 2015 2016 2015 2016 2015 2016 2015

PurchaseofServices 34.17 80.16 - - - - - -

PurchaseofMaterial 0.46 - - - - - - -

SaleofMaterial 244.15 281.74 - - - - - -

SecurityDepositGiven - - - 220.00 - - 583.85 -

Slump Sale - - - - - - - 18,420.00

InvestmentinEquityShares - - - - - - 5.00

ReimbursementofExpensesmade

49.71 32.49 - - - - - -

ReimbursementofExpensesreceived

250.12 - - - - - 330.45 -

ReimbursementofIncomemade

- - - - - - 357.56 -

SaleofInvestmentinEquityShare

300.00 - - - - - - -

ICDReceived 700.00 6,432.88 - - - - - -

ICDPaidBack 700.00 13,382.73 - - - - - -

InterestExpense 113.17 400.01 - - - - - -

ICDgiven 596.74 15.00 - - - - - -

ICDReceivedBack 611.74 - - - - - - -

Advanceagainstagreement 2,663.00 - - - - - - -

AdvanceReceivedback 2,663.00 - - - - - -Interest Income 44.95 - - - - - 16.56Rent&maintenancePaid 598.68 29.59 24.00 24.00 - - 475.18 -

VehicleLeaseRent - - - - 19.50 14.16 - -

Salary - - 260.96 263.40 27.29 27.29 - -

ManagerialRemuneration

- - 221.22 220.48 - - - -

Balance Outstanding

- - - - - - - -

Payable - - - - - - - -

ICDPayable - - - - - - - -

Others 6.41 151.71 0.46 9.75 - 1.44 - -

Receivable - - - - - - - -

CapitalAdvances 1,000.00 1,000.00 - - - - - -

SecurityDeposit 1,063.85 480.00 500.00 500.00 - - - -

Others - 4.60 - - - - - 18,420.00

(iii) DetailofremunerationtoKMP:- •Chairman&ManagingDirector–` 151.70Lacs(PreviousYear` 151.70Lacs) •ExecutiveDirector–` 69.52Lacs(PreviousYear` 68.78Lacs) •ChiefExecutiveOfficer–` 185.88Lacs(PreviousYear` 185.05Lacs) •ChiefFinancialOfficer–` 52.74Lacs(PreviousYear` 52.24Lacs) •CompanySecretary–` 22.35Lacs(PreviousYear` 24.11Lacs)



DisclosureinrespectofMaterialRelatedPartytransactionsduringtheyear:a) PurchaseofServices •Polylinkpolymers(India)Ltd`Nil(PreviousYear`46.45Lacs) •HindustanWiresLtd`34.17Lacs(PreviousYear`33.71Lacs)b) SalesofMaterialareto: •HindustanWiresLtd`244.15Lacs(PreviousYear`281.74Lacs)c) SecurityDepositgiventoIGLInfra`583.85Lacs(PreviousYear`Nil).d) SaleofInvestmentinEquityshare. •SupreetVyapaarPvtLtd`15.00Lacs(PreviousYear`Nil) •JBoseck&CoPvtLtd`57.00Lacs(PreviousYear`Nil) •FacitCommosales(P)Ltd`57.00Lacs(PreviousYear`Nil) •J.B.CommercialCo.(P)Ltd`57.00Lacs(PreviousYear`Nil) •HindustanWiresLtd`57.00Lacs(PreviousYear`Nil) •KashipurHoldingsLtd`57.00Lacs(PreviousYear`Nil)e) Reimbursementofexpensemade. •PolylinkPolymers(India)Limited` 47.83Lacs(PreviousYear`30.01Lacs)f) Reimbursementofexpensereceived. •IGLInfra` 580.57Lacs(PreviousYear`Nil)g) ReimbursementofIncomeReceived. •IGLInfra` 357.76Lacs(PreviousYear`Nil)h) InterCorporateDepositreceivedincludesfrom: •KashipurHoldingLimited`700.00Lacs(PreviousYear`5,308.00Lacs). •JBoseck(P)Ltd`Nil(PreviousYear` 600.00Lacs) •SupreetVyapaar(P)Ltd`Nil(PreviousYear`415.00Lacs)i) InterCorporateDepositpaidbackincludesto: •KashipurHoldingLimited`700.00Lacs(PreviousYear`11,152.24Lacs). •MayurBarter(P)Ltd.`Nil(PreviousYear`745.00Lacs). •SupreetVyapaar(P)Ltd.`NilLacs(PreviousYear`646.00Lacs). •JBoseck(P)Ltd.`Nil(PreviousYear`600.00Lacs). •FacitCommosales(P)Ltd`Nil(PreviousYear`90.00Lacs)j) AdvanceagainstAgreementincludesto: •KashipurHoldingLtd`2,663.00Lacs(PreviousYear`Nil)k) Advancereceivedbackincludesto: •KashipurHoldingLtd`2,663.00Lacs(PreviousYear`Nil)l) InterCorporateDeposit/OtherDepositsgivenincludesto: •IGLInfra`596.74Lacs(PreviousYear`15.00Lacs)m) InterCorporateDeposit/OthersDepositsreceivedbackincludesfrom: •IGLInfra`611.74Lacs(PreviousYear`Nil)n) InterestExpenseincludesto: •KashipurHoldingLimited`113.17Lacs(PreviousYear`294.86Lacs). •SupreetVyapaar(P)Ltd.`Nil(PreviousYear`21.88Lacs). •MayurBarter(P)Ltd.`Nil(PreviousYear`67.05Lacs).o) InterestIncomeincludesfrom: •KashipurHoldingLtd`44.95Lacs(PreviousYear`Nil)p) Rent&MaintenancePaidto •PolylinkPolymers(India)Ltd`13.67Lacs(PreviousYear`13.48Lacs) •KashipurHoldingLimited` 10.68Lacs(PreviousYear`7.69Lacs) •IGLInfra`1,041.42Lacs(PreviousYear`Nil)q) VehicleLeasePaidto: •RakeshBhartiaHUF`1.06Lacs(PreviousYear`6.36Lacs) •AnandSinghalHUF`6.00Lacs(PreviousYear`4.80Lacs) •AlpnaSharma`0.50Lacs(PreviousYear`3.00Lacs) •SmitaBhartia` 10.00Lacs(PreviousYear`Nil) •GeetaBhallaRs.1.94Lacs(PreviousYear`Nil)r) CapitaladvancesReceivable: •HindustanWiresLimited`1,000.00Lacs(Previousyear`1,000.00Lacs)s) SecurityDepositreceivable: •AjayCommercialCo.(P)Limited`240.00Lacs(PreviousYear`240.00Lacs) •J.B.CommercialCo.(P)Limited` 240.00Lacs(PreviousYear`240.00Lacs) •USBhartia` 500.00Lacs(PreviousYear` 280.00Lacs) •IGLInfra`583.85Lacs(PreviousYear`Nil)



47. In respect of subsidiary SSAIL; a) TheCompanyhadbeen incurringcash lossesdue towhich itsnetworthhasbeencompletelyerodedand

itscurrent liabilitiesare far inexcessof itscurrentassets.Accordingly in theYear2012-13SSAILhadfiledapplicationwith theBoard for IndustrialandFinancialReconstruction (BIFR).TheBIFRvide itsorderdated4thApril2013hasdeclaredM/s.SSAILasasickindustrialcompanyintermsofSec3(1)(o)ofSickIndustrialCompanies(SpecialProvisions)Act,1985.Further,BIFRhasappointedIDBIastheOperatingAgency(OA)withdirections topreparea revivalscheme for thecompanyandalsocompanyhadfileddraft rehabilitationschemewithBIFRintheyear2013-14.Further,companyislookingandevaluatingotherbusinessopportunities,consideringthisandcontinuoussupportfromtheholdingcompany,themanagementconsidersitappropriatetopreparetheseFinancialStatementsofSSAILonGoingConcernbasisdespitethenegativenetworthonthebalancesheetdate.

b) Asstatedinnoteno.(a)aboveandinviewoffinancialtightnessSSAILcouldnotpayontimeinterestaswellasprincipalandmadedefaultinrepaymentof:

(i) Principal:-SugarDevelopmentFund(SDF)`66.38Lacs(Mar-16-sincepaid)CentralBankofIndia(CBI)`5,723.26Lacs(CashCreditincludinginteresttillMarch2014)&TermLoanfromCentralBankofIndia`18.85Lacs(Apr-2013toMar-2016)

(ii) Interest:-SugarDevelopmentFund(SDF)`15.38Lacs(Mar-16-sincepaid)CentralBankofIndia`5.41Lacs(Apr-2013toMar-2016),AxisBank`18.50Lacs(Mar2016-sincepaid)

(iii) Interest on borrowings (which has been categorised as NPA) from Bank ` 2,079.64 Lacs (includingpreviousyear`977.52Lacs)hasnotbeenprovidedasrehabilitationschemewithOAareinprocessandbalanceofloanaresubjecttoconfirmation.

48. Exceptionalitemincludes: (a)AProvision/Liabilityof 49.04Lacs(PreviousYear 1,100.00Lacs)hasbeencreatedagainstfinalsettlement

of foreignexchange contract relateddispute; (b)Lossonaccountofexchange ratedifferencesamounting to` 4,294.94Lacs(netofgainof`3,830.44Lacs)[PreviousYear`1,600.55Lacs(netofgainof`5,064.53Lacs)]onpayment,settlementaswellasreinstatementofshorttermforeigncurrencyborrowingsandothermonetaryassets/liabilities;(c)Provisiononaccounttospecialdiscounttoanoverseasoverduereceivablesamountingto` 746.02Lacs(PreviousYear`5,052.12Lacs),inviewofremotechancesofrealizationonaccountofsteepfallinpriceintheinternationalcommoditymarket.(ReferNoteNo.37(a));(d)Profitonsaleof‘RentalBusinessDivision’amounting to `Nil(PreviousYear`5,194.26Lacs);(e)Lossonsaleofspentsilvercatalystamountingto`917.00Lacs (PreviousYear` 2,480.78Lacs)and (f)Writingoffofexport incentive receivableof`Nil (PreviousYear` 756.32Lacs)whichhasbeenrecognizedinearlieryearsasperapplicablegovernmentschemes.

49. IncompliancewithAccountingStandard27on “FinancialReportingof Interest inJointVenture”, thedetailsofcompany’sshareinitsjointventureintherespectiveheadofFinancialStatementareasunder:

Particulars Amount (` in Lacs)31.03.2016 31.03.2015

LiabilitiesLongtermLiabilities 1,405.88 417.09OtherLong-termliabilities 67.51 44.35Othercurrentliabilities 229.26 189.58AssetsTangibleassets 746.38 744.18Intangibleassets 0.03 0.06Capitalwork-in-progress 2,839.33 1507.67Intangibleassetsunderdevelopment* 50.17 48.90Long-termloansandadvances 211.47 214.10Othernon-currentassets - 11.98Cashandcashequivalents 439.64 762.84Short-termloansandadvances 68.15 16.71Income 0.21 -ExpensesRatesandtaxes - -Miscellaneousexpenses 3.10 3.07

*ShareinRailwayLicenseFee



50. SegmentInformation:

A.InformationaboutBusinessSegments(PrimarySegments): (`inLacs)BusinessSegments Others Unallocable Total

Chemicals Liquor

31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015

A REVENUE

1 GrossSales(External) 200,209.73 231,069.80 116,262.92 70,056.34 7,750.10 10,263.66 - - 324,222.75 311,389.80

Inter- Segment 145.78 136.99 - - - - - - 145.78 136.99

Total 200,355.51 231,206.79 116,262.92 70,056.34 7,750.10 10,263.66 - - 324,368.53 311,526.79

2 OtherIncome 3,014.04 5,870.51 259.13 76.07 286.34 816.22 710.57 1,197.62 4,270.26 7,960.42

3 TotalRevenue 203,223.77 236,940.31 116,522.23 70,132.41 8,036.44 11,079.88 710.57 1,197.62 328,493.01 319,350.22

B RESULTS

1 SegmentResult(PBIT) 11,238.54 2,537.19 4,168.18 1,751.16 1,959.18 (25.39) (10,305.49) (2,320.66) 7,060.41 1,942.30

2 InterestExpense(Net) 13,802.76 16,338.73

3 ProfitBeforeTax (6,742.35) (14,396.43)

4a ProvisionforCurrentTax(netofMATcredit)

- -

4b DeferredTax (2,240.14) (5,531.16)

4c Taxationprovisionofearlieryear/Mat(Credit)entitle-ment

410.28 (0.78)

5 Profit after Tax (4,912.49) (8,864.49)

C Other Information:

1 Segment Assets 202,704.27 218,755.40 30,897.02 26,664.01 22,299.08 23,075.51 43,753.38 46,946.50 299,653.75 315,441.42

2 Segment Liabilities 127,790.03 37,896.17 13,138.09 10,071.90 4,873.57 5,807.58 128,411.02 231,960.54 274,212.71 285,736.19

3 Capital Expenditure 8,793.95 7,860.40 468.07 281.53 1,059.46 687.07 1,237.39 431.34 11,558.87 9,260.34

4 Depreciation and Amortisation expenses

4,605.59 6,858.15 264.79 284.92 772.46 1,602.13 287.69 852.64 5,930.53 9,597.84

B.InformationaboutGeographicalSegments(SecondarySegments):(`inLacs)

Domestic Overseas Total31.03.2016 31.03.2015 31.03.2016 31.03.2015 31.03.2016 31.03.2015

1 GrossSales(External) 237,265.01 208,867.52 86,957.74 102,522.28 324,222.75 311,389.80

2 Segment Assets 248,347.78 244,824.27 7,552.59 23,670.65 255,900.37 268,494.92

Notes: Primary Segment reporting (by business segment)

Segments have been identified in linewith Accounting Standard on ‘Segment Reporting’ (AS-17), taking intoaccounttheorganisationalstructureaswellasthedifferentialrisksandreturnsofthesesegments.TheCompanyhasidentifiedthreesegmentsi.e.businessIndustrialchemical,Liquorandotherswhichincludesherbalproducts,rentalandsugarandreportedaccordingly.

Secondary Segment reporting (by geographical segment-customer location) Inrespectofsecondarysegmentinformation,theCompanyhasidentifieditsgeographicalsegmentas(a)domestic

and(b)overseasonthebasisoflocationofcustomers.

Reportable segments Reportablesegmentshavebeenidentifiedasperthequantitativecriteriaspecifiedin ‘AccountingStandard17:

SegmentReporting’.

Segment Composition Industrial Chemicals SegmentcomprisesGlycols,SpecialtyChemicals,NaturalGumandotherrelatedgoodsetc. Liquor SegmentcomprisesmanufactureandsaleofEthylAlcohol(Potable).

‘Others’ primarilyincludesHerbalProducts,RentalandSugar.



51. Earningspershare(EPS):

2015-16 2014-15

Netprofit/(loss)fortheyearattributabletoequityshareholders(`inLacs) (4,912.49) (8,864.49)

Weightedaveragenumberofequitysharesoutstanding 30961500 30961500

Basicanddilutedearningspershare(facevalueof`10each)(`) (15.87) (28.63)

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

NatureofInstruments 2015-16Amount

(FC in millions)

2015-16Amount

(` in Lacs)

2014-15Amount

(FCinmillions)

2014-15Amount

(`inLacs)

ForwardContracts-USD 0.30 198.78 2.00 1,250.10

Foreign currency options -USD 10.25 6,791.65 - -

Open foreign exchange exposures:PackingCreditNetofExportdebtors-USD 20.65 13,683.77 52.38 32,742.26

Loans-USD 5.66 3,748.01 49.44 30,906.86

Payable-USD-EURO-JPY-CHF

17.71---

11,733.77---

17.860.031.33

0.01

11,166.3918.246.912.82

(b) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is` 209.99Lacsnetoffgainof`1,193.91Lacs(PreviousYeargain`923.67Lacsnetofflossof`1,270.11Lacs)whichisinclusiveoflossof` 505.06Lacs(PreviousYearlossof`71.37Lacs)provisionformarktomarketgain/lossonaccountofalloutstandingfinancialtransactionsason31stMarch2016.

(c) ConsideringtheprincipleofprudenceandannouncementmadebyTheInstituteofCharteredAccountantsofIndia‘AccountingforDerivatives’inMarch,2008,theCompanyhasprovidedforanamountof`36.59Lacsincludedin(b)(PreviousYear`41.08Lacs)onoutstandingcontractstotheStatementofProfit&Loss,onaccountofforeignexchangederivativeinstruments.



53. AdditionalInformationasrequiredunderscheduleIIIoftheCompaniesAct,2013,oftheenterprisesconsolidatedassubsidiary/Associates/JointVentures.

Sl. No

Name of the entity Net Assets,( i.e., total assets minus total liabilities)

Share in profit or (loss)

As % of consolidated net

assets

Amount(` in Lacs)

As % of consolidated profit

or loss

Amount(` in Lacs)

A B(a)1

2(b)12C

D

(a)

ParentIndia Glycols limitedSubsidiaries IndianShakumbariSugar&AlliedIndustriesLimited.IGL Finance LimitedForeignIGLChemInternationalPTE.LTD.IGLChemInternationalUSALLCMinority Interest is insignificant and immaterial, hence not considered.Joint Ventures (as per Proportionate Consolidation Method)IndianKashipur Infrastructure and FreightTerminalPrivateLimited(KIFTPL)Eliminations

190.74%

(59.62%)

0.38%

(0.89%)0.46%

11.84%

(41.99%)

42,729.48

(13,356.17)

84.91

(200.34)(103.77)

2,652.53

(9,404.90)

69.54%

20.85%

0.02%

0.23%4.72%

0.06%

4.58%

(3,416.01)

(1,024.30)

(1.14)

(11.50)(232.05)

(2.89)

(224.60)

TOTAL 100.00% 22,401.74 100.00% (4,912.49)

54. PreviousYear’sfigureshavebeenregrouped/rearranged/recastwhereverconsiderednecessary.


N.K. Lodha Rakesh Bhartia Anand Singhal Partner ChiefExecutiveOfficer ChiefFinancialOfficerMembershipNo.85155

Place :Noida,UP Lalit Kumar Sharma Dated:26thMay,2016 Company Secretary

INDIAGLYCOLSLIMITEDCIN:L24111UR1983PLC009097

RegisteredOffice:A-1,IndustrialArea,BazpurRoad,Kashipur-244713,Distt.UdhamSinghNagar,Uttarakhand

Signatureofshareholder/proxy

ATTENDANCE SLIP



Nameofthemember(s): EmailId:

Registeredaddress: FolioNo./ClientId:

DPId:

I/We,beingthemember(s)of…….........................................…sharesoftheabovenamedCompanyherebyappoint:

1)_____________________________of___________________________havingemailid________________________________orfailinghim



andwhosesignature(s)areappendedbelowasmy/ourproxytoattendandvote(onpoll)forme/usandonmy/ourbehalfatthe32nd Annual General MeetingoftheCompany,tobeheldonSaturday, 24th September, 2016 at 11.00 A.M. at A-1, Industrial Area, Bazpur Road, Kashipur-244 713, District Udham Singh Nagar, Uttarakhandandatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

PROXY FORM[Pursuant to section 105(6) of the Companies Act,2013andrule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]

Signedthis…………………….dayof……………………2016.

……………………….. ……………………………….Signatureofmember Signatureofproxyholder(s)Notes:1. This form, in order to be effective, should be duly stamped, completed, signed and deposited at the Registered Office of the Company, not less than 48 hours before the

commencement of the meeting.2. A proxy need not be a member of the Company.3. Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights.A

memberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonorshareholder.

4. Appointingaproxydoesnotpreventamemberfromattendingthemeetinginperson,ifhe/shesowishes.5. Fortheresolution,explanatorystatementandnotes,pleaserefertothenoticeoftheAnnualGeneralMeeting.**6.Thisisonlyoptional.Pleaseputa‘√’intheappropriatecolumnagainsttheresolutionsindicatedintheBox.Ifyouleavethe‘For’or‘Against’columnblankagainstanyoralltheresolutions,

yourProxywillbeentitledtovoteinthemannerashe/shethinksappropriate.7. Incaseofjointholder,thesignatureofanyoneholderwillbesufficient,butnamesofallthejointholdersshouldbestated.

**Iwishmyaboveproxytovoteinthemannerasindicatedintheboxbelow:

Affixrevenuestampofnot

less than `1.00

Resolution No. RESOLUTIONS FOR AGAINSTORDINARY BUSINESS1. Adoptionofauditedfinancialstatements(includingtheconsolidatedfinancialstatements)forthefinan-

cialyearended31stMarch,2016.2. Re-appointmentofShriM.K.Rao,whoretiresbyrotation.3. AppointmentofStatutoryAuditorsandtofixtheirremuneration.SPECIAL BUSINESS4. ApprovalRatificationoftheremunerationoftheCostAuditor.5. ApprovalforRe-appointmentofShriU.S.Bhartia,asChairmanandManagingDirectoroftheCompany.6. ApprovalforremunerationofShriM.K.Rao,ExecutiveDirectoroftheCompany.7. Approvalofraisingoffundsbywayofissueofsecurities.

I/We___________________________________________R/o.______________________________________ hereby recordmy/our presenceatthe32ndAnnualGeneralMeetingoftheCompanyheldonSaturday,the24th September, 2016 at 11.00 A.M. at A-1, Industrial Area, Bazpur Road, Kashipur – 244713, Distt. Udham Singh Nagar, Uttarakhand

DPID*_____________________ FolioNo.____________________

ClientID*___________________ No.ofShares________________

Note:Pleasecompletethisandhanditoverattheentranceofthemeetingvenue.*Applicableforinvestorsholdingsharesinelectronicform.



Signatureofshareholder/proxy

ATTENDANCE SLIP



Nameofthemember(s): EmailId:

Registeredaddress: FolioNo./ClientId:

DPId:

I/We,beingthemember(s)of…….........................................…sharesoftheabovenamedCompanyherebyappoint:




andwhosesignature(s)areappendedbelowasmy/ourproxytoattendandvote(onpoll)forme/usandonmy/ourbehalfatthe32nd Annual General MeetingoftheCompany,tobeheldonSaturday, 24th September, 2016 at 11.00 A.M. at A-1, Industrial Area, Bazpur Road, Kashipur-244 713, District Udham Singh Nagar, Uttarakhandandatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

PROXY FORM[Pursuant to section 105(6) of the Companies Act,2013andrule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]

Signedthis…………………….dayof……………………2016.

……………………….. ……………………………….Signatureofmember Signatureofproxyholder(s)Notes:1. This form, in order to be effective, should be duly stamped, completed, signed and deposited at the Registered Office of the Company, not less than 48 hours before the

commencement of the meeting.2. A proxy need not be a member of the Company.3. Apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrights.A

memberholdingmorethan10%ofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasaproxyforanyotherpersonorshareholder.

4. Appointingaproxydoesnotpreventamemberfromattendingthemeetinginperson,ifhe/shesowishes.5. Fortheresolution,explanatorystatementandnotes,pleaserefertothenoticeoftheAnnualGeneralMeeting.**6.Thisisonlyoptional.Pleaseputa‘√’intheappropriatecolumnagainsttheresolutionsindicatedintheBox.Ifyouleavethe‘For’or‘Against’columnblankagainstanyoralltheresolutions,

yourProxywillbeentitledtovoteinthemannerashe/shethinksappropriate.7. Incaseofjointholder,thesignatureofanyoneholderwillbesufficient,butnamesofallthejointholdersshouldbestated.

**Iwishmyaboveproxytovoteinthemannerasindicatedintheboxbelow:

Affixrevenuestampofnot

less than `1.00

Resolution No. RESOLUTIONS FOR AGAINSTORDINARY BUSINESS1. Adoptionofauditedfinancialstatements(includingtheconsolidatedfinancialstatements)forthefinan-

cialyearended31stMarch,2016.2. Re-appointmentofShriM.K.Rao,whoretiresbyrotation.3. AppointmentofStatutoryAuditorsandtofixtheirremuneration.SPECIAL BUSINESS4. ApprovalRatificationoftheremunerationoftheCostAuditor.5. ApprovalforRe-appointmentofShriU.S.Bhartia,asChairmanandManagingDirectoroftheCompany.6. ApprovalforremunerationofShriM.K.Rao,ExecutiveDirectoroftheCompany.7. Approvalofraisingoffundsbywayofissueofsecurities.

I/We___________________________________________R/o.______________________________________ hereby recordmy/our presenceatthe32ndAnnualGeneralMeetingoftheCompanyheldonSaturday,the24th September, 2016 at 11.00 A.M. at A-1, Industrial Area, Bazpur Road, Kashipur – 244713, Distt. Udham Singh Nagar, Uttarakhand

DPID*_____________________ FolioNo.____________________

ClientID*___________________ No.ofShares________________

Note:Pleasecompletethisandhanditoverattheentranceofthemeetingvenue.*Applicableforinvestorsholdingsharesinelectronicform.

india glycols limited · 2016-09-30 · state bank of india state bank of patiala axis bank limited...

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