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Tilaknagar indusTries lTd.

Annual Repor 2009-10



Forward Looking Saemen

In his Annual Repor, we have disclosed forward-looking informaion o enable invesors o comprehend our prospecs and ake

invesmen decisions. Tis repor and oher saemens - writen and oral – ha we periodically make conain for ward-looking saemens

ha se ou anicipaed resuls based on he managemen’s plans and assumpions. We have ried wherever possible o idenify suchsaemens by using words such as ‘anicipae’, ‘esimae’, ‘expecs’, ‘projecs’, ‘inends’, ‘plans’, ‘believes’, and words of similar subsance

in connecion wih any discussion on fuure performance. We canno guaranee ha hese forward-looking saemens will be realised,alhough we believe we have been pruden in assumpions. Te achievemens of resuls are subjec o risks, uncerainies, and even

inaccurae assumpions. Should known or unknown risks or uncerainies maerialise, or should underlying assumpions prove inaccurae,

acual resuls could vary maerially from hose anicipaed, esimaed, or projeced. Readers should keep his in mind. We underake no

obligaion o publicly updae any forward-looking saemens, wheher as a resul of new informaion, fuure evens or oherwise.

Company Overview

02. A case on brands

04. A case on mark et penetration

06. A case on e xpansion

08. A case on grow ing num bers

10. A case for ex ce llence

12. Brand S how case

34. Management Discussion and A na ly sis

40. Director’s R eport

52. Corporate Go vernance R eport

68. Tilak nagar Industries Ltd.

96. Prag Disti llary (P) Ltd.

116. Sur ya Organic C hemicals (P) Ltd.

134. Conso lidated Financia l Statements

16. C hairman and

Managing Director’s perspectiv e

18. Prof le o t he Board o Directors

20. Senior Management prof le

22. For a sustaina b le uture

Board andManagement Report

Strategic Review Auditors’ Reportand

Financial Statements

What’s Inside Case(s)



1

Annal Rpt 2009-10

At ilaknaga Indstis Ltd.,

w gw ight-ld in lms m

1 millin cass t8 millin cass th last as.

Spisd?

W ha nl st bgn. Rad n.



2

ilaknaga Indstis Ltd.

A cas n bands

A cmbinatin band pmimisatin, csd maktpntatin and ampd packaging sltd in nhancdptabilit I.

A k pla in th Sth, I’s fagship band Mansin Hs

Band lads th makts in th pmim band sgmnt acss ais makts. With a makt sha 56% in Andha Padsh,78% in ala, 97% in anataka, 42% in amil Nad, 78% inPdch, and almst 100% in Ga, Mansin Hs Band ns cla ladship psitin.

W achid a ma bakthgh with th acqisitin sn

bands m Alcbw Distillis India Pt. Ltd. t gain tactinin th Cantn Sts Dpatmnt (CSD) makts. T bandsacqid cmpis Whit Hs, Whit Hs Pmim Whisk,Black Clt, Bachl Dlx Fin Whisk, Ng H-Mans XXX Rm and Gldn Chait.

CoMPANy oveRvIeW A cas n bands

Strategic Review Board and Management Reports Auditors’ Report and Financial Statements



3

Annal Rpt 2009-10

Rcgnitin

Mansion House Brandy becamehe 3rd ases growing domesic/local brand wih 154.1% increase in volumes *

Mansion House Brandy has also beenrecognised as he Brandy o he year**

*Source: Millionaire 2010 supplement from Drinks

International, July 2010 by Euromonitor International

**Awarded by Ambrosia Magazine at Indspirit 2009

Madira XXX Rock Rum became he ases growing domesic/local brand wih 188.9% increase in volumes

T Millinai ClbEuromonior Inernaional and Drinks Inernaional publishmillionaires lis: a ranking o global spiri brands, wih sales o over

n millin 9-lit cases. I’s Mansion House Brandy andMadira XXX Rock Rum ound heir place in he lis.



4


A cas n makt pntatin

I’s srong ocus in he IMFL segmen has grown is marke sharerom 3% in 2008-09 o over 4% in 2009-10.

o makt shain th band sgmntnhancd m

7.1% t

14.1%.

CoMPANy oveRvIeW A cas n makt pntatin




5

Annal Rpt 2009-10

I also increased is expor peneraion

hrough Snat Ral Whisk and Classic Whisk t Wstn

Aica, th Middl east, Faeast and Caibban cntis. We are also looking o grow our inernaionalreach in scale and coverage. Tis will be

achieved by adding more brands o ourexpor lis and reaching beyond our currennework ha spans hree coninens.



6


A cas n xpansin

We are ocusing on inorganic and organicexpansions o drive marke share.

Following he acquisiion o major brands, our oal brands exceed

40 and our regisered brand coun in he CSD segmen has ouched11, enhancing sales volume considerably.

Acquisiion o manuacuring aciliies in Karnaaka and AndhraPradesh o Surya Organic Chemicals (P) Ld. and Prag Disillery (P)Ld. has sared yielding resuls. We are also ocusing o increase he botling capaciy in boh o our subsidiaries.

CoMPANy oveRvIeW A cas n xpansin




7

Annal Rpt 2009-10

I’s new, sae-o-he-ar, muli-pressure (molasses-based) disillaionplan successully commenced operaions in November 2009. Iis on he verge o compleing is green eld 100 KLPD grain-basedENA plan. Currenly, I’s 90%-plus volume sales emanae rom heSouhern par o India. Te new aciliy would enable us o produce varieies o premium whisky o penerae he Norh Indian marke.



8


A cas n gwing nmbs

CoMPANy oveRvIeW A cas n gwing nmbs




9

Annal Rpt 2009-10

Pmanc highlights

Gross sales increased by 24.12% (rom ` 3,917.34 million in 2008-09 o` 4,862.12 million in 2009-10)

PA surged by 55.89% (rom ` 212.48 million in 2008-09 o ` 331.23 million in2009-10)

Operaing proi galloped by 68.00% (rom ` 408.12 million in 2008-09 o` 685.65 million in 2009-10)



10


A cas xcllnc

I is one o he leading players in he manuacure and markeingo Indian Made Foreign Liquor (IMFL). Wih over 40 brands in isporolio, I has successully reinorced is ooprin across India andis gradually enhancing is global presence.

Coporte baCgound 1933: Esablished as Te Maharashra Sugar

Mills Ld. by he visionary indusrialis ShriMahadev L Dahanukar or he manuacureo sugar and allied producs. Te indusrialcomplex was named as ilaknagar as aoken o graiude owards LokmanyaBalgangadhar ilak.

1973: A 100% subsidiary o MSML wasincorporaed o make indusrial alcohol,

IMFL and sugar cubes and named asilaknagar Disillery & Indusries Ld.

1987: Due o changes in macro economicclimae as a resul o various regulaory policies, he Company gradually disconinued is sugar business.

1993: MSML and DIL merged o ormilaknagar Indusries Ld.

2009: Molasses o Exra Neural Alcohol

(ENA) producion capaciy enhanced o100 KLPD.

2010: Expeced o commence 100 KLPDGrain o ENA producion capaciy.

ManufaCtuing faCilities

Primary manuacuring aciliy locaed insugar rich bel o Shrirampur, Maharasra.

Manuacuring nework spread across 31unis hrough owned, leased and ie-upunis.

CapaCity additions

50 KLPD muli-pressure (molasses-based)disillaion plan commenced operaionsrom November, 2009.

100 KLPD Greeneld plan (grain-based) ison he verge o compleion.

CoMPANy oveRvIeW A cas xcllnc




11

Annal Rpt 2009-10

TroughGovernmen Corporaions

Andhra Pradesh, Kerala,Orissa, Karnaaka, Delhi,amil Nadu, Rajashan andChatisgarh

TroughDisribuors

Maharashra, Goa, Daman,Silvassa, Puducherry, Mahe,Karaikal, Yanam, WesBengal, Sikkim, Assam,Meghalaya

TroughDirec Sales

Caneen Sores Deparmens,Border Securiy Force, ParaMiliary Force, CenralReserve Police Force, Indo-ibeian Border Police andNaional Securiy Guard

sales bea up: Channel wise

sales and distibution netwo

Te Company sells is producs hrough hree channels.

Awards and achievemensBes Business Parner o CSD 2009-10

Emerging Company o he Year award a BevIndia 2010

Brandy o he Year award a INDSPIRI 2009 or Mansion House

ISO 14001:2004 Environmen Managemen Sysem cericae

1

2

3

Corporations 89%

Distributors 6%

Direct sales 5%

1

2

3



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Band shwcas

Tese are some o he imporan brands haconsiue our rich produc porolio.

CoMPANy oveRvIeW Band shwcas




13

Annal Rpt 2009-10

Senae Royale Whisky A special blend creaed by expers, by careulselecion and amalgamaion o nes Indian Spiris wih impored Scoch.

BlacPower Whisky A combinaion o rare spiris

and exper blending bringsou he mos auhenic whisky experience. Wih a disincivease and a lingering nish, hisspiri unleashes he power o supremacy and perecion.

Classic Whisky A Blend o nesIndian mal spiri wihsuperior alcohol.

Whie HousePremium Whisky A blend o imporedscoch mals and nesIndian grain spiris.

Royal Choice Whisky A special blend creaed by expers by careul selecion andamalgamaion o nes Indianspiris wih impored Scoch.

Golden Chario

Whisky A ne blend made wih anessence o barley ha evolvesino a ligh sensaion and glidesdown smoohly, creaing anunorgetable experience.

Bachelor Whisky Made rom maured barley andselec Indian mal, ha giveshis blend is beauiul dark gold in and rich srong avour.

Whisk



14


Maser’s DocorBrandy A beauiul golden yellow blend wih a rich ruiy avourand a ypical brandy aromaha is obained rom he nesdisillaion process

Band

Mansion House FrenchBrandy A rare blend creaed by expersusing radiional mauredgrape brandies obained romspecial Cognac po sills ogain a vibran aroma and boldcharacerisic wih a brighgolden in.

Courrier NapoleonFines Pure GrapeFrench Brandy A beauiul blend made romcareully seleced grape spiridisilled in Cognac po sills o France. Te brandy is mauredin special wooden casks hagive i a disincive and uniquecharacer and a golden in wih

hin o honey and vanilla.

Duchess A unique blend o nes grapespiris wih smooh aromaand well-balanced radiional brandy ase.

Whie House Brandy

Classic blend o rich grapespiri wih radiional atribueso pure and radiional brandy.

MH VSOP A blend ha ruly denes hesmooh and well balancedase o he nes grape spiri,creaed by exper blenders ogive i a pleasan ase.

CoMPANy oveRvIeW Band shwcas




15

Annal Rpt 2009-10

vdka Rm Gin

Casle Club ripleDisilled VodkaCrisp, superior and riple-disilled, atracive amily shaped, all botle.

Madira Premium XXX Rum A blend made o rsgeneraion sugarcane juice

spiri and maured o a produc wih noable avour and asmooh ase.

Savoy Club Gin &Fresh LimeCraed rom he nes boanicals, ruis and spices,picked a he peak o heirreshness.

Classic Vodka A blend o nes riple disilledalcohol and naural ingrediensavailable in atracive rosed botle.

I Black Col

Maured XXX Rum A unique blend prepared ouo molasses spiri, blended andmarried o perecion or rumconnoisseurs.

Royal Choice

Due Gin An invigoraing essencedisilled wih a inge o herbsand ruiy noes, creaed by exper blenders or a pleasanase.

Bonking Rum

A smooh maured XXXrum wih an inense avourappealing o he palae.



16


am d, Chairman and Managing Direcor

Chaiman and Managing Dicts’ pspcti

CoMPANy oveRvIeW Chaiman and Managing Dicts’ pspcti


d s,

In 2008-09, we had celebraed happy hours and 2009-10 again markeda year o jubilaion a ilaknagar Indusries Ld. (I), as we deliveredsuperlaive perormance, ollowing unsined eors by all memberso he I raerniy. Tis happened agains he backdrop o a pos-slowdown India Inc, ready o surprise he world wih specaculargrowh raes, ranslaing ino enhanced disposable income or all classeso people across he social pyramid.



17

Annal Rpt 2009-10

Operaing in such an environmen, India’s alcoholic beverage

indusry is poised or specacular growh in boh value and volume

erms. Te indusry is a is ipping poin now, wih encouraging

growh raes expeced across he enire specrum o price poins

and caegories.

In 2009-10, we achieved our highes ever sales, on enhanced

proabiliy, widening o marke share in he IMFL segmen

hrough increased peneraion, emerging as a srong player in he

CSD segmen hrough brand acquisiions and nally on being

lised on he Naional Sock Exchange.

oday we have a wide array o more han 40 brands in he IMFL

space including whisky, brandy, gin, rum and vodka. Tese brands

caer o economy, semi-premium and premium segmens. I has

wo millionaire brands Mansion House Brandy and Madira XXX

Rum which enjoy he limeligh. Tese have been observed o be

wo o he hree ases growing IMFL brands in India according

o Euromonior.

Overall, we concenraed on he premium segmen, along wih

revamped packaging o inroduce a more vibran and conemporary

brand appeal. We have laid srong emphasis on expanding our

geographic coverage and enhancing our reail ooprin.

Along wih hese iniiaives, we are coninuously making eors

o urher build on our reail and insiuional nework. I has

a dominan presence in high key growh areas such as Kerala,Karnaaka, Puducherry, Andhra Pradesh and amil Nadu. As we

move ahead, I is ocused on exending is presence pan India in

he IMFL space. Las year, he Company has acquired seven brands

rom Alcobrew Disilleries India Pv. Ld. which are regisered wih

he Caneen Sores Deparmen (CSD) and also have a presence in

Norh India. Going orward we expec I o bene rom such a

brand porolio and geographic expansion. Our new sae-o-he-

ar, muli-pressure (molasses-based) 50 KLPD disillaion plan

successully commenced operaions in November 2009. Te 100

KLPD grain-based ENA plan is expeced shorly commence

commercial producion. Tese expansions will srenghen our

sourcing abiliies and consequenly our dependence on ouside

vendors or Exra Neural Alcohol (ENA) has reduced. Te ENA manuacured in house is ranspored o our varied botling ie up

unis. Tis aciliaes a smooh operaional nework, growing leaps

and bounds in line wih our business sraegies.s

Our eors were recognized in he indusry, enhancing brand

visibiliy. Our Mansion House Brandy was he proud recipien

o he presigious ‘Brandy o he Year’, awarded by Ambrosia

Magazine a Indspiri 2009. Te Conederaion o Indian Alcoholic

Beverage Companies (CIABC) recognized us as ‘Te Emerging

Company o he Year’ a BevIndia 2010. We were also awarded he

Bes Business Parner o CSD in he liquor caegory a a glitery

ceremony o CANPAR held on May 13, 2010. We also eaured

in he ‘Millionaire Repor’ o he laes Euromonior Repor o

Million Cases Seller Brands in July 2010 ediion. Our Madira

XXX Rum was raed as he ases growing domesic/local brand.

Mansion House Brandy was acclaimed as he hird ases growing

domesic/local brand.I am pleased o inorm you ha he Board has recommended nal

dividend o ` 2.5 per equiy share (25%) on he expanded capial.

Furhermore, he Board has recommended a bonus issue o 2

equiy shares or every 1 equiy share held, similar o he bonus

declared las year. Te declaraion o a liberal bonus signies our

inen o share our progress wih our shareholders and also our

condence in he uure o our business where we expec o service

our expanded equiy hrough solid earnings growh.

We are commited o operaing our business responsibly, wih

respec or he environmen and sensiiviy o he needs o our local

communiies. As a leading employer in our region, we ocus on

giving back o he communiy and say commited owards helpinghe underprivileged o accelerae inclusive growh.

We are a he righ indusry a he righ momen wih he righ capial

and inellecual wherewihal o grow and enhance sakeholder value.

I wish o acknowledge he role o Board o Direcors, employees,

vendors, business parners, sakeholders and our well-wishers or

heir coninued suppor and encouragemen. Le us all rearm our

commimen o grow he I brand, naionally and inernaionally,

o leverage indusry opporuniies aser han our peers.

Regards

am d

Chairman and Managing Direcor

“ “

he issue o 2 bonus shares or every 1 share held, similaro he bonus declared las year indicaes our conidence onhe uure o our Business.



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Pl th Bad Dicts

1 8 7

2 6

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SreGIC RevIeW Pl th Bad Dicts

Company Overview Board and Management Reports Auditors’ Report and Financial Statements



19

Annal Rpt 2009-10

d. rvindr bapat

Dr. Ravindra Bapa is Emerius Proessor, Deparmen o Surgical Gasroenerology a he Seh G. S. Medical Collegeand K.E.M Hospial, Parel, Mumbai. He is a member o heGoverning Council o aa Memorial Cenre and ruseeo Yashwanrao Chavan Praishhan, Ayurvidya Vardhini &Sanyog rus, Mumbai. He is also he Chairman o Haine

Bio-pharmaceuical Corporaion Ld.

M. C.v. bijlani

Mr C V Bijlani, who sared his career as Lecurer inEconomics, is a banker wih over 4 decades’ experience in allhe elds o banking and nance e.g. Projec Finance, CapialSrucuring, Merchan Banking, Invesmen Banking, Forex,Mergers and Acquisiions, Indusrial Rehabiliaion, Join Venures, Exernal Commercial Borrowings, Leasing,Hire Purchase, HRD, Accouns, axaion. Legal, General Aminisraion ec. He has held very senior posiions wihpublic and privae secor banks.

M. Madan goyal

Mr. Madan Goyal is a Managemen graduae wih a vas 43- year experience in commercial banking, invesmen bankingand human resources managemen. He has been associaed wih he Sae Bank o India or a period o 25 years, holdingsenior posiions. He is also he Chairman o Primeview (India) Inn Pv. Ld.

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6

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M. aMit dahanuk

Mr. Ami Dahanukar is a graduae in Elecrical Engineering wih a Masers degree in Engineering Managemen romSanord Universiy, U.S.A. He is responsible or spearheadinghe uure iniiaives o I.

Ms. shivani aMit dahanuk

Mrs. Shivani Ami Dahanukar is a Masers in Business Adminisraion rom he Universiy o San Francisco; shealso graduaed in Law rom he Governmen Law College,Universiy o Mumbai. She oversees I’s daily operaions.

M. s.v. MuzuMda

Mr. S.V. Muzumdar is a Law graduae. He possesses vasknowledge and experience in corporae axaion andmanagemen. He is on he Board o many repued companiesand enjoys a hree-decade associaion wih I.

M. v.b. haibhati

Mr. V.B. Haribhaki is a Charered Accounan and inpracice or he pas several years. A gold medallis in he nalCharered Accounans Examinaion, Mr. Haribhaki washe Presiden o Insiue o Charered Accounans o Indiarom 1967-68. He was also he member o he Council o heInsiue o Charered Accounans o India rom 1961-73. Wih considerable experience in he eld o accounancy andmanagemen, Mr. V.B. Haribhaki is I’s Non-Execuive andIndependen Direcor and is associaed wih he Company since March, 1977.

d. vishnu knhee

Dr. Vishnu Kanhere is a pracicing Charered Accounanand a qualied Cos Accounan. He is a Ceried FraudExaminer [Associaion o Ceried Fraud Examiners, U.S.A]and a Ceried Inormaion Sysem Audior [InormaionSysems Audi and Conrol Associaion, U.S.A]. He hassuccessully compleed I.C.R.A. (UK) approved CeriedLead Audiors course or ISO 9000:2000 Qualiy Sysem Audior. His nancial, commercial and inormaionechnology background helps him provide valuable inpus

o he Company.

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3

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Sni Managmnt pl

1 3 5

6

2 4

7 98 10

1. DR. eSHAB NANDy

Sr. Vice Presiden – Legal & Chie Vigilance OcerDr. Keshab Nandy, a muliple graduae and pos-graduaedegree holder wih Disincion in English, HRD, Law,Managemen, wih a Ph.D in Managemen, Dr. Nandy

oversees he legal uncions o he Company.2. DR. SuHBIR PuRI

Sr. Vice Presiden – OperaionsDr. Sukhbir Puri, who is a Ph. D. in Chemisry, has over36 years o exensive experience comprising ve years inmarkeing and 32 years in manuacuring/ operaions. Heis presiding he Indian Chamber o Commerce & Indusry Commitee on Environmenal Concerns.

3. MR. LALI SeHI

Chie Financial OcerMr. Lali Sehi is a Charered Accounan, wih over 20 years o experience, in he eld o nance and accouns

across various secors. He oversees he nancial uncionso he Company.

4. BINee WALIA

Sr. Vice Presiden (Sales & Markeing)Mr. Binee Walia, ormer Colonel o Indian Army bringsalong wih him vas experience o ormulaing sraegies,managing operaions and muliarious aciviies. He hasMasers in Managemen Science and Masers in SraegicSudies. He specializes in CSD and oreign rade.

5. MR. rjA MuHeRjee

General Manager – Markeing and Sales

Mr. Raja Mukherjee, a managemen pos-graduae and anexecuive graduae in Business Managemen Program romIIM Calcuta, has had exensive experience o over 10 years inmarkeing, corporae sraegy and sales. He is heading he AllIndia Markeing and Sales uncion a I since Sepember’09.

6. MR. GAurv HAuR

Company Secreary Mr. Gaurav Takur, a pos-graduae in Commerce and aqualied Cos Accounan and Company Secreary havingexperience o over 10 years in he areas o secrearial andlegal uncions across various secors.

7. MR. vIjAySING B. BoRSe

Associae Vice PresidenMr. Vijaysing B. Borse is graduae in Science & Chemicalechnology rom LI - Nagpur and has more han 28 years o rich experience in he eld o manuacuring andprojecs, mainly in alcohol & alcohol based chemicals. Healso has experience in indusrial relaions, human resource& general adminisraion.

8. MR. ABHAy SINGH CHAuHAN

General Manager – OperaionsMr. Abhay Singh Chauhan, a science graduae wih pos-graduae diploma in Indusrial Fermenaion & Alcohol

echnical & Alcohol echnology (DIFA) rom NaionalSugar Insiue, Kanpur. He has over 29 years o experiencein alcohol manuacuring and liquor botling unis.

9. MR. C R rMeSH

General Manager – LiquorMr. C R Ramesh is a chemisry graduae wih over 26 yearsexposure in he liquor indusry. He is ully conversan wihall he aspecs o liquor manuacuring and oversees hemanuacuring operaions o he Company.

10. MR. . uMArSAMy

DGM – ManuacuringMr. K. Kumarasamy is a graduae in Chemisry having 20 years experience, o which 17 years is in he liquor indusry,in he areas o Blending & Qualiy Assurance, Producion o IML, Spiris & Wine and Commercial.

SreGIC RevIeW Sni Managmnt pl




21

Annal Rpt 2009-10

11 12 13 15

17 18

14

16 19 20

11. MR. C.D. NAGeSHWAR ro VP – Sales (Andhra Pradesh)Mr. C.D. Nageshwar Rao, a high perorming markeingproessional, is a commerce graduae wih diploma inBusiness Managemen. He possesses a rich 28 years o experience in sales, o which 26 years is in he liquorindusry.

12. MR. ASHISH CHouDHuRy

DGM – Sales (Karnaaka)Mr. Ashish Choudhury is a humaniies graduae rom heBangalore Universiy, having 30 years experience in salesin Karnaaka, Andhra Pradesh, Maharashra and Madhya

Pradesh wih leading IMFL companies.

13. MR. S S BAL Aje

A GM – Sales (amil Nadu, Puducherry & Andaman)Mr. S S Balaje, a graduae in Corporae Secrearyship, hasover 25-year experience in he areas o consumer research/innovaions, sales and markeing o liquor, packagesand inned ood. He oversees operaions o amilnadu,Puducherry and Andaman.

14. MR. GANeSH NAMBIAR

AGM – MarkeingMr. Ganesh Nambiar is a graduae in Commerce and

a resuls-oriened proessional wih over 15 years o experience in markeing, communicaion, producmanagemen and sales across various secors (alcoholic beverages, elecommunicaions and consumer durables).

15. MR. rjeSH AGrWAL

AGM – Sales (Maharashra, Daman, Diu)Mr. Rajesh Agrawal is a graduae in Ars having over 25 years o experience in IMFL indusry, possessing in-dephknowledge o sales and disribuion in he liquor indusry.

16. MR. AMI KLeGeneral Manager – PurchaseMr. Ami Kale is a pos-graduae in Packaging echnology rom he Indian Insiue o Packaging wih over 12 yearo experience and experise in packaging developmen,purchase, vendor developmen, cosing, MIS and budgeary conrol. He has recenly been accorded he India Sar Award,he only Naional Award or Excellence in Packaging.

17. MR. ANAND KDAM

DGM – PurchaseMr. Anand Kadam is a graduae in Engineering (B.E.Producion-Hons.) rom he Mumbai Universiy and pos-

graduae in Maerials Managemen having more han 18 years o experience in areas o maerials managemen.

18. MR. G. S. RISHNAN

DGM – FinanceMr G.S. Krishnan, a science graduae and C.A.I.I.B. (IndianInsiue o Bankers), has over 28-year experience wihnaionalized and privae secor banks in he area o nancialservices. He is responsible or he day-o-day working capialrequiremen and nancial maters o he Company.

19. MR. MANoj MIMANI

DGM – Accouns

Mr. Manoj Mimani is a graduae in Commerce and Company Secreary wih an experience o more han 15 years in heareas o accouns, nance, axaion and secrearial uncionsacross various secors. He is responsible or he accounsand axaion o he Company.

20. MS. SAvIANA PHuLSuNGHe

AGM – HR Ms. Saviana Phulsunghe, a pos-graduae in HumanResource wih a rich experience o over 15 years, is in heareas o human resource, handling a generalis prole.



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F a sstainabl t

A ilaknagar Indusries Ld. (I), susainabiliy represensresponsibiliy owards he communiy and he environmen or ahappier and prosperous omorrow.

SreGIC RevIeW F a sstainabl t




23

Annal Rpt 2009-10

We have adoped 51 wadis in he areas surrounding our moher uni a Shrirampur oimprove he qualiy o lie o he people hrough various iniiaives. From addressing he

needs o drinking waer o aking up alernaive measures or energy generaion, we are

iniiaing innovaive seps o ensure ha I grows wih he people. Tese 51 wadis all

under 22 gram panchayas o Ahmednagar disric. I, hrough he auspices o Shree

Ramanugrah rus, has iniiaed several aciviies or he wellbeing o local residens.

I’s logo porrays our commimen and spiri in reaching ou ohe communiy and creaing social awareness. Te alphabes ‘I’graphically personiy an all-encompassing eminine orm. Te

message is clear: I lays prime emphasis on is people, promoingdiversiy and women empowermen.



24


Te herb leaves in I symboldenoe he pharmaceuical

projecs o he Company. Te waer drop represens he waer harvesing projec.

Halth

a Swami Brahmananda Chariable Dispensaries:I runs a ree dispensary or is sa, workers and he villagerso ilaknagar, Shrirampur. I also runs wo OPD and chariabledispensaries. Everyday, around 100 paiens are reaed a hedispensaries. Medical check-ups or various common ailmens, dog bie vaccinaion ec are provided. A dedicaed eam o wo docors,hree nurses and a ward boy caers o he needs o villagers.

b Healh camps: A healh camp is conduced by I medical eam every ornighin one o he 51 adoped localiies o Ahmednagar disric.Healh camps were conduced in gynaecology, pediarics andpolio eradicaion.

Wellness camps: Wellness camps are being conducedsince December 30, 2007 and hree such camps have beenunderaken ill dae. In he rs camp, 152 paiens werereaed, in which six surgeries ook place. Besides, yourCompany had conduced nuriional ood camps or children(below 5 year age group).

Eye camp: Eye check-up camps are being conduced since

June 2, 2009. I sponsors ve o 10 paiens or caaracsurgery every monh. ill dae, I has sponsored 75 paiensor caarac surgery and conduced 12 eye camps.

Free medicines: I provides ree medicines or vi llagers romhe neighbouring localiies in heir dispensaries.

c Waer puricaion and supply: I provides clean and puried drinking waer o he v illagers o Shrirampur, ensuring heir overall healh and hygiene.





25

Annal Rpt 2009-10

Cmmnit dlpmnt

Places o worship:I suppors renovaion and re-esablishmen o many spiriualsrucures and insiuions irrespecive o any paricular religiousaliaion. emples like Hanuman emple Eklahre, Mahadev Mandir ilaknagar, Hanuman Mandir ilaknagar, Idega a Atawadi, Masjid a ilaknagar are relevan examples.

Communiy marriages:I regularly conducs and sponsors communiy marriages or he

poor a Shrirampur. ill dae, I has organised our communiy sponsored marriages or 49 couples. Te Company has borne heexpenses or he ceremony, he bride and groom’s atire, he goldand oher daily household iems or he newlywed couples.

Spors club:I club oers memberships and variey o spors aciliies andequipmen, ree o cos, a I Gymkhana.



26


a Academics and spors:Since December 2008, he Company decided o sar I Spors(able ennis, badminon, volleyball, cricke, ennis, chessand carom). Around 120 children o various age groups availo he aciliies o he gymkhana. Te Company provides henecessary equipmen or he games. Wihin he period o a year he Company has helped hree inernaional players andnaional and sae level players in various games.

b Pension and medical relie: I provides unds or surgery and reamen o poor paiens.Te Company also provides pension o senior ciizens and hephysically challenged in 51 wadis adoped by he Company.

I is also sponsoring seven swimmers a he sae and naionallevel championships.

Sr.No.

Name o heplayer

Caegory Game

1 Praik Druva Jagdhane

Inernaional Cricke

2 Anki Vinayak ribuvan

Inernaional Cricke

3 BharasinghNandlal Pardesi

Inernaional Cricke

4 Cricke eam All Indiaournamen

Cricke

5 Deepak Gadekar Naional Cricke

(ennisball)6 Ashwini

DhokchaaauleSae aekwando

7 Dokchauleshubham

Sae aekwando

8 Volleyball eam Sae & All india

ournamen

Volleyball

Sr. No. Name o he swimmer Caegory

1 Mr. Aaron D'souza Inernaional

2 Miss Purva Sheye Inernaional

2 Miss Jyosana Pansare Inernaional

4 Miss Rujua Bhat Naional

5 Miss Avanika Chavan Naional

6 Miss Ashwahy Nair Naional

7 Miss Lekha Kamah Naional

8 Mr. Shrikan Palande Naional

Spnsships and gants





27

Annal Rpt 2009-10

edcatin

a Dahanukar English and Marahi mediumschool:

Your Company runs an English medium school and supporsMarahi medium school or children a ilaknagar, Shrirampur.Te Dahanukar English Medium High School was sared in1975. Te school has a curren srengh o 621 sudens and 42aculy members. Te school is inspired rom Gurukul sysemand conducs classes ollowing age-old Vedic norms. Te Yajurveda is augh and a yogacharya acquains he sudens wih India’s spiriual heriage on auspicious days. Te school haslevels rom primary o mariculaion educaion. Te sudensare impared qualiy educaion, and many have become eminenproessionals.

Sudens prepare or Maharashra alen Search Exam, NSexams. Tis year he school had 100% pass percenage or heSecondary School Cericaion exam and all sudens scored a

rs class.

Te Open Book orming paro he I logo is symbolic

o he Company’s eors oprovide qualiy educaion oall. I also signies knowledgeand learning.

Te Marahi medium school is also well equipped wih ameniiesand aciliies. I was buil in 1945, and currenly has abou 22sa and eachers, imparing educaion o 530 sudens. Teschool is consanly running various programmers or sudenscholarships, culural compeiions, spors and yoga classes.



28


Scial wla

a Responsible drinking:I is commited o promoe responsible and sae drinking. Iconducs road shows across he ciies and insiuions, especially places requened by youh, o spread he message o ‘responsibleand sae drinking’.

b Annakshera:I’s Maa Ananeshwaridevi annakshera a various places in

India has been uncional or many years. I is an iniiaive oeed he sarving and poor o India. Over 4,200 men, womenand children are provided ree ood daily a he annaksherapandal se up or he purpose in ilaknagar and Company’soher business cenres across he counry. Free ood is alsodisribued a some o he villages, which canno avail o aid dueo disance and inhospiable errain. Much o he groceries orhe Annakshera are sourced rom he consumer sores ha areully unded by I. Vegeables used in he annakshera kichenare grown on he campus, he uel comes rom nearby he Gobargas plan, whereas he ood and liquid wases generaed arerecycled via ciy composing and reed bed sysems.

c Vedic educaion: Your Company suppors educaional insiues ha oer amix o ancien Vedic educaion and conemporary seculareducaion. I is also supporing anoher Vedic insiuion(Kaeswami Ashram) a Shrirampur.

d Suppor o orphanages: Your Company suppors he orphanage Anand Vihar a

Ranjankhol, Shrirampur. I no only provides grocery iems andmilk or children rom Goshala, bu also provides hem supporor heir scholasic and exracurricular needs.





29

Annal Rpt 2009-10

eninmntal

awanssand initiatis

a World environmen Day Programme:

his year, on accoun o he World environmen day– 5h June2010, an ambiious monh long program was designed andsuccessully compleed a Mumbai and Shrirampur by I.

A ree planaion program was conduced in Mumbai on he4h June, which included senior members o he managemen,I sa and environmenal aciviss. A hree-ier program

was designed or he I employees rom Mumbai and acory,people rom he 51 adoped wadis, school children rom hewo schools on campus, girls rom adoped orphanage o beconduced in Shrirampur. SPROUS an environmenal rusin Mumbai provided he necessary guidance and experise orhe program. Abou 2000 people paricipaed in he monh-longprogram, which comprised he ollowing:

1. Environmenal raining and awareness2. ree planaion by paricipans3. our o he susainabiliy iniiaives aken up by I on is

Shrirampur campus

While he monh-long program concluded on 1s July, 2010, Van Mahosav, (Fores esival) wih he launch o a DVD, imarked he beginning o he larges ree disribuion drive haI has aken up ill dae. Trough he monh o July, over 40,000saplings o ores and rui rees were disribued ree o cos oineresed people, spanning more han 100 Gram panchayas, various hospials, schools, cours and police saions.

bGoshala: I has been running a goshala since he las hree years and

currenly has around 200 catle in is sheds, which includessome animals rescued rom slaugher houses, and some sray animals abandoned by armers. Te goshala is a sheler/havenor aged, unproducive cows as well as bulls. Abou 350 lireso milk is generaed everyday, which is used in he Annaksheraand disribued o he 1,200 sudens o he I schools in heilaknagar Campus, while he excess is sold o he employees asubsidized raes.



30


c Gobargas plan: As a susainabiliy measure and as an example or he localcatle rearers, I has se up a gobar gas plan (120 cubic meercapaciy), puting o use he dung generaed rom is Goshala.Te Goshala generaes abou 3 onnes o dung daily, o which70% is used in he gobar gas plan o produce 90 cubic meerso Mehane gas everyday, which is supplied o he Annaksherakichen, enailing a ne daily saving o ` 1400, equivalen o 19kg o commercial gas cylinder. Te resulan slurry rom hegobar gas plan and arm wases produce 200 meric onnes o vermicompos annually, v ia linear beds and heap-composing.

d Vermicomposing:I pracices Vermicomposing in Linear Beds in a 10,000 sq..area, where dung rom he goshaala along wih arm wase, biomass is ed o he earhworms ha produce ne qualiy vermicompos. Around 200 M o vermicompos is producedannually or organic culivaion o vegeables and odder in I’sarms, as well as or he in-house nursery.

Heap composing: Te excess dung, remaining aer eeding he gobar gas and

vermicomposing beds, is decomposed using heap composingmehods. Dung, along wih biomass, is decomposed over a periodo hree monhs, wih he use o bacerial culures o acceleraehe process. Tis compos is used or vermicomposing or ordirec applicaion in he elds.

Ciy composing:Te biodegradable kichen wase rom Annakshera kichen andood wase rom disribuion cenres o abou 30-35 kgs is beingrecycled using ciy/bin composing. HDPE barrels o 200 lireseach are layered wih ood wases and dung, acing as saringmaerial or earhworms o generae valuable composs, o beused in gardens. Urban dwellers are using hese composing bins

as planers o grow vegeables hrough he holes puncured inhe bins.

g Organic ormulaions: Abou 1,000 lires o catle urine, colleced daily rom heGoshala, help prepare various organic ormulaions (Beejamru, jeevamru, dashaparni arka, neem arka, panchgavya, amru pani,among ohers). Tese organic ormulaions involve he use o various oher ingrediens such as ghee, milk, besan (chickpeaour), neem, various medicinal plan leaves, ollowed by ermenaion or wo o our weeks. Te organic ormulaionsserve as seed reamen, pes repellen, bacericide, ungicideand growh promoers or odder and vegeable crops.

h Reed bed sysem: Abou 15,000-20,000 lires o grey waer, generaed rom uensilsand vegeable washing as well as waer rom he washing o cowsin he goshala, is recycled using reed-bed/aricial welandsysem. Semi-aquaic and edible plans such as Colocassia aregrown on a bed o vermicompos, wherein, he solid wase isdigesed by he worms and he waer is absorbed by he plans.Tis is a susainable efuen waer reamen se-up. Te excess waer acs as an enriched liquid erilizer, used or odderculivaion.

i Rainwaer harvesing: Waer is urning ou o be one o he world’s scarces resources.Locaed in he rain-shadow region o Marahwada in he Ahmednagar disric, ilakanagar receives less han 400-450 mmo rainall annually. However, he las ve years have winessedsignican ucuaions in he precipiaion levels, causingcrop damage. Besides, he ground waer able has depleedconsiderably in he las decade due o over pumping o heground waer reserves and very less or no recharging o he waer bodies. Alhough I has sucien waer o conduc operaions,he Company has embarked upon he insallaion o rainwaerharvesing srucures on a large scale in anicipaion o uure waer shorages. Since here is very less or no slope in he area,he convenional waer harvesing measures (erracing, bunding,

renching) aren’ o much use. I has aken a novel wo-ieredapproach which harvess surace runo and rooop rain waer oreplenish ground waer via recharge pis on is exising borewells.





31

Annal Rpt 2009-10

Abou 50% o he oal rainall is expeced o be recharged ino he wo borewells involved in his srucure in Annakshera area, rechargingabou 120 lakh liers o rainwaer annually, replenishing ground waerables. I does no plan o sock he harvesed rainwaer or is ownuse, bu insead recharge he underground waer able, which in urn benes he enire communiy and no jus he Company. .

Roo-op rain waer harves:Rooop rainwaer harvesing has been aken up on he Chairman’s bungalow in ilaknagar, where he rain alling on he rooops iscolleced, channelized and recharged ino he neares borewell,recharging around 96,000 lires o waer annually. I has conduced anaudi o all he available rooop area in is Shrirampur campus and isnow slaed o sar rooop rainwaer harvesing on over 4 lakh squareee o area, harvesing over 250 lakh liers o rainwaer annually orecharge he 22 borewells in he campus.

k Soil improvemen:Due o he high emperaures, relaively low amouns o rain andexcessive irrigaion, he soils in Shrirampur have developed highalkaliniy and concenraion o sodium and calcium sals o he levels where hey impair he nurien upake o crops and reduce produciviy.Tis limis he range o crops ha can be culivaed successully on helands. o address his problem, I ook up a hree-pronged approach

or he improvemen o such soils:

bc: Green manuring crops are culivaed on such lands.Te roos o hese crops e.g. legumes harbor nirogen xing baceria and enrich he soils wih nirogen. Also, beore oweringhe plans are ploughed down ino he eld which increases heorganic mater in hem helping beter he soil srucure.

Cmc: Applicaion o sulphur/ gypsum @ 2 M per acreannually is done o bring down he alkaliniy o hese soils andmainain a desirable ph in he soil.

pc c m: Tis is an exremely eecive means o make highly alkaline and sodic soils usable oragriculure. I essenially involves draining ou he sals rom he

roo zone o he crops i.e. o a deph o one meer, so ha hecrops have a healhy roo zone, which can absorb nuriens andgenerae bumper yields. Tis is achieved by laying undergroundporous pipes across he lengh o he eld and draining hem ino

a shallow pi. When he soil is regularly irrigaed he salsge dissolved and are drained ou hrough he porous pipesino he shallow pi, where hey vaporize. Tis ensures hahe roo zone o he crops remains sal-ree, hus converingnon-arable land ino lush arms.

l Solar energy: While he adjoining areas are sruggling or basic ameniies likeelecriciy and waer, I has realized ha he power shorall(expeced in he near uure) can be easily alleviaed by heinsallaion o solar powered inrasrucure. I has insalled22 solar powered sree lamps in and around he Annakseracampus. During he awareness drive, he Company disseminaedinormaion abou new-age echnologies, such as solar lanerns,orches, cookers, caps as well as he exising sree lamps o helocal villagers.

m ree planaion:I has always emphasized he imporance o ree planaion.Trough he inclusion o muli-purpose ree species whichhave medicinal, edible as well as ecological values, I inends ocover 33% o is 257-acre campus. Te enhusiasm o he I sa members, heir amilies, school kids, as well as villagers romadoped wadis has expedied aoresaion during he monh-

long World Environmen Day program. Te 2,000 paricipansplaned around 6,000 saplings o over 20 plan species in amonh. In response o heir oer o disribuing ve rui rees(per amily) o he locals, I has disribued a whopping 40,000rees, on requess rom village bodies, armers, schools, primary healh ceners and ohers. I’s greening eors were lauded by he Unied Naions Environmen Programme as a par o his year’s Teme - ‘One world Many Species’!



32


Unied Naions Millennium Declaraion

In Sepember 2000, building upon a decade o major UniedNaions conerences and summis, world leaders came ogehera Unied Naions Headquarers in New York o adop he UniedNaions Millennium Declaraion, commiting heir naions o anew global parnership o reduce exreme povery and drawingup a series o ime-bound arges --- wih a deadline o 2015 --- beter known as he Millennium Developmen Goals.

Reduce child mortality

Devlope a globalpartnership fordevelopment

Eradication of extremepoverty and hunger

Achievement of universalprimary education

Combat HIV/Aids,malaria and other

diseases

Promotion of gender equality

Improve maternalhealth

Ensuring environmental

sustainability

2015MILLENIUMDEVELOPMENT GOALS

Te eigh Millennium Developmen Goals (MDGs) – whichrange rom halving exreme povery o arresing he spread o HIV/AIDS and providing universal primary educaion by hearge dae o 2015 – represen a blueprin, agreed upon by moscounries and he world’s leading developmen insiuions. TeMDGs have galvanized unprecedened eors o mee he needso he world’s poores.





33

Annal Rpt 2009-10

ilaknagar Indusries Ld.is sensiive o he uphill ask aced by rural communiies inhe pah o developmen and isaddressing hese issues in a ime- bound manner. Currenly, I ishelping address our MillenniumDevelopmenal Goals:

Te resolve o beter he lives o

communiies guides ilaknagarIndusries Ld. o consanly enhance he benchmark o ruraldevelopmen.

ACHIEVEMENT OF UNIVERSAL

PRIMARY EDUCATION

ENSURING ENVIRONMENTALSUSTAINABILITY

PROMOTION OF

GENDER EQUALITY

ERADICATION OF EXTREME

POVERTY AND HUNGER



34

Tilaknagar Industries Ltd.

Management Discussion and Analysis

eviewing 2009 industy scenaio

The ecoomic certaity i early 2009 hardly affected themaor prodct categorie withi beer, wie ad pirit, athey cotied with their mometm i term of ew bradlache. The relt wa dobledigit growth i ale volme,eve i 2010. Moreover, a ecoomic growth cotied to pillover from the maor citie ito the eighborig maller towad citie, the alcoholic dri idtry regitered trog growthi the comptio of braded alcoholic dri i maller citieof le developed tate, ch a Oria, Bihar ad MadhyaPradeh.

The IMFL egmet, compriig 52.5% of the Idia Alcoholic

Beverage Idtry, i etimated to be over 190 millio cae, with whiy accotig for approimatley 60% of IMFL, wherea other pirit Brow – Brady, Rm; White Gi, Voda, Rm cotitte the ret. The growth i both theegmet i drive acro maller tow ad citie by rapidrbaizatio, icreaed comerim ad adoptio of tredierlifetyle. Brady repreet the ecod larget hare i theIMFL at 18%. The comptio of brady i Idia i growigteadily, clocig arod 1520% growth every year.

1

2

3

45

1 Whisky 51.67

2 Brandy 19.073 Rum 22.78

4 Vodka 4.52

5 Gin 1.95

Idtry growth i vario egmet millio cae

yr 200809 200910 % grh

Whiy 93.00 100.50 8.06Brady 32.20 37.10 15.21Rm 41.00 44.30 8.05 Voda 6.30 8.80 39.68Gi 3.60 3.80 5.55Total 176.10 194.50 10.52

company oveview

Tilaagar Idtrie Ltd. TI cotied it growthmometm i 200910, demotratig robt volme growththi year. From a volme bae of 1 millio cae i FY 200506,the Compay ha croed 8 millio cae i Fiacial Year 200910. The pheomeal growth i the relt of it well laid otoperatioal trategie, eteive foc o ale ad ditribtio,electig right maret, acqiitio ad mafactrig tiep. With more tha 40 brad acro a divere rage of price adprodct egmet, the Compay’ gro brad ale reached a` 1,000 crore o coolidated bai icldig tiep it.

HIGHLIGHTs 2009-10

Icreaed et revee by 54.97% o a coolidated baifrom` 2,520.73 millio i 200809 to ` 3,906.26 millio i200910 o a coolidated bai

Ehaced volme by 44.40% from 5.54 millio cae i200809 to 8 millio cae i 200910

Itrodced 11 brad to cater to ew comer egmet

Etered five ew maret

Iveted i brad bildig

Chaged pacagig to her i a yothfl appeal

Grew maret hare by 1% i the IMFL egmet

bOARD AND MANAGEMENT REPORTS Management Discussion and Analysis

Auditors’ Report and Financial Statements Strategic Review Company Overview



35

Annual Report 2009-10

“

“

TI wa recogized a the Bet Bie Parter of CsDi the liqor category, a it i oe of the fatet growigidtry player, maig pplie to the CsD addemotrated a trog performace drig the f iacial year 200910. It ha acqired eve brad, which areregitered with CsD brady, rm ad whiy, ad i becomig a trog egmetal player.

QuICk FACTs

Idia i the third larget maret for alcoholic beverage ithe world

Accordig to Eromoitor Iteratioal, Idia’ usD 12 b alcohol maret i growig at12 15% aally

Idia ha over 295 ditillerie, cattered throghot the

cotry with a italled 3,540m litre capacity The total comptio of alcoholic beverage i Idia iepected to toch 217.1 millio cae i 2010, marig agrowth of 8 % from the previo year sorce:IWsR

Arod 23,000 liceed liqor otlet i Idia, withaother 10,000 otlet, ch a bar ad retarat

The per capita comptio of Idia Made ForeigLiqor IMFL i Idia i 0.82 liter aally, which i very low compared to global aal average of 4.63 litre

The Idia alcohol idtry geerate ` 30,000 croreaally for the govermet, depite lower per capitaliqor comptio i Idia v iàvi global average

REGIOnAL REVIEW The idtry poee varied characteriitic ad growth acrofor regio of the cotry a give below:

nrh

vl: Arod 25% of the total alcohol dri volme

grh (l: Arod 13% with Voda accotig for 36% volme growth, de to it tredy ad miable image. stadardad ecoomy brad cotied to domiate le developedregio of uttarachal ad uttar Pradeh

K rh rr: Riig afflece i rba regio

lr h: Dereglatio of ditribtio ad retailpolicie, reltig i icreaig offtae

pr: Epected volme growth of 6.6% CAGR from 20102013

sh vl: Arod 38% of the total alcohol dri volme – higheti Idia. Accot for 67% of Idia’ brady comptio

grh (l: Arod 12%. Lead i atioal comptioof whiy, Rm, Brady ad beer

K rh rr: Eperimetal attitde of yoth

lr h: Govermet ba o cotry liqor ikarataa reltig i a hge maret opportity for ecoomy brad of IMFL

pr: Epected volme growth of 7.4% CAGR from 20102013

e nrhe vl: Arod 10% of the total Alcohol dri volme

grh (l: Arod 11%

K rh rr: Icreae i prchaig power reltig ipgradatio to IMFL from cotry liqor

pr: Epected volme growth of 6% CAGR from the year20102013

w

vl: Arod 27% of the total Alcohol dri volme

grh (l: secod behid oth i pirit, lead i beerad Ready to Dri alcohol

K rh rr(: Eperimetal attitde of yoth adliberla tace toward alcohol

pr: Epected volme growth of 6.9% CAGR from the year 2010 – 2013



36


“ “

The chage i otloo of the yoth toward alcoholhall drive the demad for comptio growth of alcoholic beverage.

EnTRY BARRIERs

Loger time to etablih a brad

Complicated ad heavy ta trctre

Prevelace of eiitig bradHigh import dtie

Logitic ad ditribtio

kEY GROWTH DRIVERs

L r

The per capita comptio i Idia for alcoholic beverageremai low at 0.82 litre, providig a hge growth opportity i the log term a compared to other cotrie.

8.20

9.30

5.00

4.20

0.82

Russia Brazil USA UK

PER CAPITA CONSUMPTION in Litres

Source: Datamonitor

India

ll rbz

Icreae i icome level ad epaio i the middle clapoplatio wold lead to icreae i the mber of comigcla. Thi copled with the riig rbaizatio i epectedto lead to chage i lifetyle ad higher growth for alcoholic beverage.

INCOME GROUP BREAK UP (% of total population)

Deprived Aspirers (90-200) Seekers (200-500)

Stivers (500-1,000) Globals (>1,000)

93

61

80

18

2

35

43

20 11

36

20

9

22

1

1985 1995

2015E 2025E

5441

4

2005

1

Source: McKinsey

ir rk l, r ffrbl

Higher mber of people i the worig poplatio ad lowerdepedecy wold alo aid growth i alcoholic beverage. Thegrowth i worig poplatio will improve affordability thdrivig the growth for alcoholic beverage.

1995 1997

Source: McKinsey

62

20202000

50

6565

DEPENDANCY TIO (%)

y l b

The chage i otloo of the yoth toward alcohol hall drivethe demad for comptio growth of alcoholic beverage.





37


“ “

TI ha a iqe advatage of havigmafactrig it owed, leaed adtiep acro mot of the tate i Idia,reltig i igificatly higher margia compared to it peer

sl bl r fl

Icreaig overea travel ad iflece of weter media iIdia pot liberalizatio, have led to a perceptible hift i termof apiratio ad lifetyle. Comptio of alcohol by womei pblic i alo icreaigly gaiig ocial acceptability imetropolita citie. Thee tred wold play a importat roleto boot liqor comptio i Idia over the et decade.

MAnuFACTuRInG REVIEW

TI’ poee 31 mafactrig it acro Idia with itprimary mafactrig facility located i the garrich beltof shrirampr, Maharahtra. The Compay alo ha 7 leae

arragemet ad 21 tiep acro the cotry for carryigot mafactrig ad bottlig activitie. At thee locatio, TIprovide ipt material bled i trict adherece to qality orm, with it mater bleder tatioed at idividal locatioto moitor ad ere prodct coitecy ad qality compliace.

TI ha a iqe advatage of havig mafactrig it owed,leaed ad tiep acro mot of the tate i Idia, reltig i

igificatly higher margi a compared to it peer.

CAPITAL ExPEnDITuRE PROjECTs

TI ha icrred a capital epeditre of arod ` 2 billio.It ha completed 50 kLPD, tateoftheart, mltipreremolaebaed ditillatio plat ad commeced operatioi november 2009. It i o the verge of completig the maor

capital epeditre of it gree field plat of 100 kLPD grai baed EnA.

sale volme aalyi demad ditillatio it to be cloe to themafactrig it for operatioal efficiecie. Accordigly, TI

pla to et p a 100 kLPD Grai/ Molae plat i the comigftre i Adhra Pradeh. The Letter of Itet for thi prpoe

i der proce. Vetrig ito graibaed ditillatio will

help the Compay deri itelf agait the vagarie of volatility i molae price, ad help the Compay to move p the vale

chai by lachig premimgrade IMFL whiy.

MARkETInG AnD DIsTRIBuTIOn REVIEW

TI maret it prodct throgh three mai chael corporatio, ditribtor ad direct ale. The Compay

believe i the philoophy of havig a direct ale cotact at thepoit of ale owig to three importat reao:

1 More accotability i term of ditribtio of theicetive cheme meat for the ed comer

2 Direct ph at the retail level a the direct ale force

freqetly viit the retail tore peroally

3 Help i bildig a relatiohip with the retailer, addig a

peroal ad emotioal toch to the relatiohip

Drig 200910, TI derived 89% of it revee throghcorporatio i Delhi, Adhra Pradeh, karataa, kerala, Oria,

Chattigarh, ad Tamil nad. Cloe to 6% of the ale came by way of ale to the ditribtor i Maharahtra, Goa, Dama,silvaa, Podicherry, Mahe, karaial, Yaam, Wet Begal,

siim, Aam, ad Meghalaya. Direct ale accoted for 5%of total revee, doe throgh CsD, paramilitary ad eport. Apart from tregtheig the ale team, the Compay alo added

ew ditribtor i tate other tha Adhra Pradeh, karataa,

kerala, Tamil nad ad Podicherry to ehace reach.



38


BRAnDInG ExTEnsIOns

The maagemet ee to icreae the target adiece by eperimetig with brad eteio i the eitig maretad the prodct egmet. If a brad i crretly old at aparticlar price poit, the Compay itrodce variat at pricepoit that are either higher or lower tha the crret prodct.Thi will relt i icreaig the peetratio of eitig bradto vario target comer.

EnVIROnMEnTAL COMPLIAnCE

TI’ operatio ere miimal impact o the eviromet adtrictly adhere to the compliace et by the Polltio Cotrol

Board. The Compay ha iitiated followig meare acrothe it to redce the wate geerated:

utilied bioga geerated from biodigeter for electricity geeratio i bioga baed combied heat ad powerytem ad alo a fel i boiler, reltig i lowerelectricity cot ad redced coal comptio i the boiler

ued wate heat from the ehat gae of the biogaegie for team geeratio, reltig i cot avig

Iitiated a pioeerig cocept of water comptioad reorce coervatio throgh it Mltiple EffectEvaporator MEE Plat ad the revere omoitechology; it alo relted i achievig a zerodicharge of

effletItalled a iovative water treatmet ad recyclig plati the bottle wahig it to redce water comptio

utilied dry garbage for ladfillig ad wet garbage i thecity compotig proect

Plated 40,000 tree acro the it to celebrate the World Eviromet Day ad pread the ecotaiability awaree

FInAnCIAL REVIEW

O coolidated bai, the Compay ha how promiiggrowth with gro ale volme icldig ale from tiepoperatio icreaig to 8.00 millio cae from 5.54 milliocae drig the previo fical, a impreive growth of 44.43 with ale vale of the Compay’ brad icldig alethrogh tiep operatio tood at ` 10,000 millio p from` 4,897 millio drig the previo year.

RIsk MAnAGEMEnT

A a riavere corporate, TI follow prdet bie priciplei ilatig it bie, a far a poible, from eteral

vagarie. It adopt a holitic rimitigatio trategy to coterthe effect of ay poible adverity. Primary ri repreet theri prevalet i the maret, which ecompa the followig:

k f r rl lbl

Molae i the maor raw material for EnA prodctio. scarcity i the availability of the ame ca hamper the prodctioproce. TI’ mai plat i itated i shrirampr, the heart of cae growig regio i Maharahtra with a mber of garfactorie located i that regio. Molae beig the byprodctof the sgar factorie are abdatly available at a reaoableprice level. TI’ adeqate torage ta ca tore it molaereqiremet for over i moth. The commecemet of it ew 100,000 litre per day graibaed EnA plat hall redce the

depedece o molaebaed pirit. At other locatio, logterm tiep help mitigate the ri of oavailability of EnA .

k f q r l

Prevalece of iterrpted power i qite eetial for r iga plat of ch high tadard.

TI’ eitig power reqiremet of the plat i 1.7MW. The

“ “

Vetrig ito graibaed ditillatio will help theCompay deri itelf agait the vagarie of volatility i molae price, ad help the Compay to movep the vale chai by lachig premimgradeIMFL whiy





39


additioal power reqiremet for capacity epaio 3.4MWare met with the itallatio of 5 MW capacity trbie, whichhall be fficiet for the complete facility at shrirampr.

k f rk h r

Caterig to the divere target adiece with varied reqiremetat vario level of dipoable icome poee a big challegefor the maretig team. A a relt, the Compay offer a widerage of prodct portfolio, coverig the etire gamt of the IMFLegmet at differet price level w ith advaced qality tadard.The prodct are made available to the right comer, throghit trog ad farreachig ditribtor etwor.

k f l r

Recritmet ad retetio of right profeioal ito theCompay poe a big challege. A a mitigatio meare,people developmet cotie to be a ey foc area ad theCompay cotioly recogize the right talet ad reward

them for their effort. It alo ere a healthy wor atmopheread dertae repoibility to provide mltiple beefit to itemployee ad their familie.

HuMAn CAPITAL REVIEW

Drig the year the foc cotied i creatig a cadre of competet ad egaged worforce to achieve orgaizatioalobective. To thi ed, a mber of iitiative ch aappropriate illmappig combied with iteive traiig addevelopmet ered that the team cold tae o challegeof a difficlt maret. Moreover, the compay ha adopteda attractive variable pay mechaim whereby periorperformace i geeroly rewarded thereby maig employee

tre taeholder i TI’ growth. The Compay alo provide

vario beefit to it employee ch a grop mediclaim,peroal accidet irace, drop facility after 8.30 p.m. forfemale employee.

Drig 200910, the employee tregth icreaed to 727 aagait 603 employee i the previo year. A part of theCompay’ policy of harig it wealth with taeholder, TIha allotted EsOP to it employee. All cofirmed employeeof the Compay ragig from hopfloor worme to eiormaagemet have bee grated optio, maig themtaeholder i the Compay’ ftre growth.

OuTLOOk

TI i geared p for a robt ftre a a relt of it effective bradpoitioig ad maret foc.

It brad pervade all maret egmet ad are fat gaiigrecogitio for their qality ad coitecy. Mot of it bradare leadig i their repective maret egmet, aided by a

foced maretig ad ditribtio trategy. The Compay ha implemeted a eterprie reorce plaig mechaimto ere better timetomaret ad logitical plaig. Itha icreaed it preece o the grod with more iciiveditribtio ad lached a dealer egagemet programmethat icetivied performace attractively. Coiderig theaggreive trategy of the Compay to diverify it prodctegmet ad geographie, baced by flly epaded capacitie,the Compay’ ftre loo bright ad optimitic.

“

“

TTI’ eitig power reqiremet of theplat i 1.7MW. The additioal powerreqiremet for capacity epaio3.4MW are met with the itallatio of 5 MW capacity trbie, which hall be

fficiet for the complete facility atshrirampr.



40


Directors’ Report

dr mbr,

Yor Director have pleare i preetig the sevety Fifth Aal Report alog with the Adited statemet of Accot of yorCompay for the fiacial year eded 31t March, 2010.

FinanciaL HigHLigHts:

The mmary of the Compay’ fiacial relt for the year eded 31t March, 2010 ad appropriatio of diviible profit i frihed below:

` i millio

Particluars Year ended

31st March, 2010

Year ended

31st March, 2009

goss income

net sale 3,517.29 2,421.37Other Icome 43.53 27.99tl 3,560.82 2,449.36Epeditre 2,764.23 1,984.35Profit before Fiace cot, Depreciatio & Ta 796.59 465.01Fiace cot 229.58 107.10Depreciatio 67.41 28.89Profit before Ta 499.60 329.02Le Proviio for ta 168.38 116.53Profit after Ta available for appropriatio 331.23 212.48

appopiations

Trafer to Geeral Reerve 33.50 21.50

Propoed Divided 88.66 14.45Divided Ditribtio Ta 15.07 2.46Balace carried forward 581.77 387.78

Business oveview:

Yor Compay TI i oe of the leadig player i the Idia

alcoholic beverage idtry ad mafactre Idia Made

Foreig Liqor IMFL. It crretly ha more tha 40 brad

acro a divere rage of prodct egmet ad price poit

to cater to the eed of a evergrowig ctomer bae. TI

maret it prodct acro a large mber of other tate i

Idia ad i gradally amig a paatioal preece. It alo

eport it prodct to Weter Africa, Middle Eat, Far Eat

ad Caribbea cotrie. The Compay ha a growig preece

i the Catee store Departmet CsD bie with 11

regitered brad. Recogiig yor Compay’ growth i the

CsD, yor Compay wa coferred “Bet Bie Parter of

CsD – Liqor Category ” Award.

The Compay achieved gro ale of ` 4,862.13

millio a compared to ` 3,917.34 millio i

200809 achievig 24.12% icreae ad eared a et profit of

` 331.23 millio a compared to ` 212.48 millio i 2008 09.

O coolidated bai, the Compay ha how promiig

growth with ale volme icldig ale from tiep operatioicreaig to 8.00 millio cae over 5.54 millio cae

drig the previo fical, a impreive growth of 44.40%.

Gro brad ale tood at ` 10,000 millio p from ` 4,897

millio drig the previo year.

bOARD AND MANAGEMENT REPORTS Directors’ Report




41


The healthy performace i yor Compay’ bie

operatio at both toplie a well a bottomlie recofirm

the cce of the effort, trategy, the tregth of it bie

model ad brad.

unLocKing vaLue Fo tHe memBes:

DIVIDEnD

Yor Director are pleaed to recommed for the fiacial year

eded March 31, 2010, a fial divided of 12% o Complorily

Covertible Preferece share Capital o pro rata bai ad

fial divided of ` 2.50 per Eqity share25% ot of the et

available profit after proviio for taatio. The Divided, if declared, will ivolve a otflow of ` 103.73 millio.

capitaL maKet deveLopments:

LIsTInG OF EQuITY sHAREs

The Eqity share of yor Compay have bee lited o The

Bombay stoc Echage Limited, Mmbai for may year.

Yor Compay i pleaed to aoce that the natioal stoc

Echage of Idia Ltd. nsE ha, vide it Circlar dated nsE/

LIsT/C/2010/0629 dated jly 14, 2010, grated permiio

for litig of Eqity share of the Compay with effect from jly

16, 2010 i the normal Maret egmet Rollig settlemet

for tradig i complory demat form for all ivetor der the

ymbol “TI”.

sHARE CAPITAL

Drig the fiacial year der review, the Athoried

share Capital of the Compay wa icreaed from ` 384.6

millio to ` 584.6 millio to eable the Compay to meet the

capital reqiremet.

Drig the fiacial year der review, the paid p hare capital

of the Compay ha icreaed from 5,725,068 Eqity share

of ` 10/ each to 32,310,000 Eqity share a per statemet

give below:

Date Particulars CumulativeNo. o Shares

April 01, 2009 Paid p Eqity share at the begiig of the Year.

5,725,068

Agt 14,

2009

Allotmet of 4,370,000Eqity share to Mr. AmitDahaar ad Mr. shivai Amit Dahaar, Promoter of the Compay o coverioof 200,000 CCPs ied oMarch 26, 2009 ad 4,170,000

Warrat ied o jly 2, 2009

10,095,068

september 03

& 25, 2009

Ie of Bo share i theratio of 2 Eqity share forevery 1 hare held

30,285,204

March 5, 2010 Allotmet of 2,024,796 Eqity share to Mr. Aad P. nair,nopromoter hareholder ocoverio of 674,932 CCPsheld by him alog with Bothereo i the ratio of 2 Eqity share for every oe hareallotted,

32,310,000

EMPLOYEEs sTOCk OPTIOn sCHEME - 2008 Yor Compay i committed to beig a highperformig growth

orieted orgaiatio providig opportity to employee

to raie their level of performace ad commitmet, thereby

erig that the combied effort of all employee wor

toward maimiig corporate performace ad taeholder

vale. I order to eable the Compay to achieve thi goal o a

taied bai, the Compay ha itrodced ad implemeted

EsOP scheme 2008 for vetig a part of the owerhip of the

Compay i the had of the employee a a motivatig factor

to icreae prodctivity ad efficiecy.

Detail of the stoc Optio ottadig a o March 31, 2010

der EsOP scheme 2008, a ameded o september 3, 2009are a follow:



42


Date o Grant Numero Options

granted and

in orce

Exercise Price*

jly 02, 2009 273,000 75% of the average of the highad low of the maret priceof the hare of the Compay o BsE drig the 15 dayprecedig the date of vetigbect to miimm eercieprice of ` 40/

jaary 28, 2010 1,444,521 75% of the average of the highad low of the maret price of the hare of the Compay oBsE drig 15 day precedigthe date of vetig bect tomiimm eercie price of ` 75/

Total 1,717,521

*Pot adtmet of the bo ie approved o september 3,2009 i the ratio of 2 Eqity share for 1 share held.

company’s eXpansion activities:

COMMIssIOnInG OF 50 kLPD EnA PLAnT

Yor Compay i pleaed to iform yo that it ha cceflly italled ad commiioed a ew 50,000 litre per day Etranetral Alcohol EnA plat. The feedtoc for thi plat imolae. The facility i operatig moothly ad cloe to 100%of it rated capacity. The alcohol prodced from thi plat caterto yor Compay’ bottlig arragemet i Adhra Pradehad kerala

InsTALLATIOn OF 100 kLPD GRAIn BAsED EnA PLAnT

Yor Compay i o the verge of completig it gree field100,000 litre per day Grai baed alcohol facility at shriramprad ame will provide the right bae for yor Compay to lachpremim prodct dometically ad iteratioally. The graifacility will alo provide a atral hedge agait the flctatioi molae price. The alcohol prodced from thi plat willcater to yor Compay’ icreaig bottlig reqiremet iMaharahtra ad sother Idia.

ACQuIsITIOn OF BRAnDs

Yor Compay ha cceflly coclded acqiitio of eve brad. Thee brad are White Hoe Whiy, White HoeBrady, Golde Chariot Whiy, Bachelor Dele Whiy,Blac Colt Rm, negro HeMa xxx Rm ad BoigRm. All thee brad are regitered with the Catee storeDepartmet CsD ad havig reaoable preece. Theacqiitio will frther add to the 4 brad yor Compay haalready regitered with the CsD, th givig yor Compay aportfolio of 11 brad. Yor Compay i cofidet of growigit bie with the CsD which i a igificat compoet of IMFL ector.

suBsidiaies:

The Compay ha two wholly owed bidiarie, viz: PragDitillery P Ltd. havig it Plat i the state of AdhraPradeh ad srya Orgaic Chemical P Ltd havig it Plati the state of karataa.

Prat to the proviio of sectio 212 of the Compaie Act,1956, the tatemet ad accot of the aid bidiarie formpart of the Aal Report. noe of the above bidiarie i aMaterial noLited sbidiary i term of the Clae 49 of theLitig Agreemet.

consoLidated FinanciaL statements:

A tiplated by Clae 32 of the Litig Agreemet ad iaccordace with the reqiremet of Accotig stadard As21 precribed by the Ititte of Chartered Accotat of Idia, the Coolidated Fiacial statemet of the Compay,together with the Aditor’ Report thereo are aeed to the Aal Report.

diectos:

Drig the fiacial year der review, Mr. C.V.Bilai adMr. Mada Goyal were appoited a Additioal Director o jly 2, 2009 ad Agt 3, 2009 repectively. Both of them were reappoited a Director by the Member i the AalGeeral Meetig ad Etra Ordiary Geeral Meetig held o

Agt 01, 2009 ad Agt 24, 2009 repectively.Dr. Vih kahere ad Mr. V. B. Haribhati, Directorof the Compay, retire by rotatio at the eig AalGeeral Meetig ad beig eligible, offer themelve for reappoitmet.





43


A brief profile of the Director eeig reappoitmet,the atre of their epertie i pecific fctioal area, theame of the Compaie i which they hold Directorhip adMemberhip of Committee of the Board i frihed a a partof the Corporate Goverace Report.

Mr. P.R.k . Reddy ha ceaed to be the Director of the Compay with effect from Agt 24, 2009.

QuaLity initiatives, saFety andenvionment:

Yor Compay i a IsO 14001:2004 Compay committig tohigh level of compliace of pecified Evirometal stadardad providig healthy wor eviromet for it employee.

awads and ecognition

Drig the fiacial year der review, the Compay wacoferred with followig pretigio award i recogitio of it

performace, achievemet ad cotribtio to the society:

A) EuRO MOnITOR REPORT

Yor Compay i pleaed to iform yo that Madira Rm

ad Maio Hoe Brady are the 1t ad 3rd fatetgrowig IMFL dometic brad repectively with a aleof a miimm millio cae for the year der review a cofirmed by Ero Moitor Report. Yor Compay icofidet of growig thee brad frther i thi fiacial year maig them formidable brad i their repectivemaret egmet.

B) “EMERGInG COMPAnY OF THE YEAR” AWARD

Yor Compay wa coferred the pretigio ‘EmergigCompay of the Year’ award, by the Cofederatio of Idia Alcoholic Beverage Compaie CIABC. Theaward trly tad a recogitio of the remarable progrethe Compay ha made withi a hort pa of time.

C) “BRAnDY OF THE YEAR” AWARD

Yor Compay alo got the pretigio “Brady of the Year” Award by Ambroia Magazie at Idpirit, 2009 ithe preece of vario idtry player.

D) “BEsT BusInEss PARTnER OF CsD” AWARD

Yor Compay wa awarded with the Bet BieParter of CsD i the liqor category a it i oe of thefatet growig Compay maig pplie to the CsD. Ata glittery ceremoy of CAnPART held o May 13, 2010,Mr. shivai Amit Dahaar, Eective Director of theCompay received the award o behalf of the Compay.

Futue outLooK

Yor Compay i cofidet of taiig the growth mometm which ha developed over the pat few year. Yor Compay i the fatet growig Compay i the Idia Made ForeigLiqor IMFL egmet. Yor Compay ited to maitaithi growth mometm i thi fical.

Yor Compay ited to coolidate it poitio i thesother maret of kerala, Adhra Pradeh, karataa adTamilad where it eoy a domiat poitio i the brady

egmet. Yor Compay ha already lached ew brad ithee maret ad iitial repoe i ecoragig.

Yor Compay will alo gradally develop it footprit i theorther ad eater regio by bildig it mafactrigad ditribtio ifratrctre. Effort to thi effect are already derway.

Yor Compay alo ha pla to itrodce brad i the whiy egmet at trategic price poit. Whiy beig the domiatflavor i Idia, yor Compay ited to foc o developigthi category.

Yor Compay alo pla to icreae the bottlig capacity of it’ wholly owed bidiary Prag Ditillery P Ltd. The crret bottlig capacity of Prag i 50,000 cae per moth which yorCompay ited to epad to 300,000 cae per moth. AdhraPradeh beig a ey ad growig maret for yor Compay, it iimperative for yor Compay to go ahead with thi epaio to better ratioalie it mafactrig ifratrctre.

FiXed deposit:

The Compay ha ot accepted ay depoit withi the cope of sectio 58A of the Compaie Act, 1956 drig the fiacial year der review.

At the ed of the year der review, there were 3 matreddepoit aggregatig to ` 16,000/ Rpee sitee ThoadOly, which have ot bee claimed by the depoitor pto the



44


date of thi Report. There were o depoit drig the year, which were claimed bt ot paid by the Compay.

There are o claimed depoit/iteret o depoit lyig with the Compay for more tha eve year which are to be

traferred to Ivetor Edcatio & Protectio Fd a persectio 205C of the Compaie Act, 1956.

auditos:

M/. Batliboi & Prohit, stattory Aditor of the Compay,hall retire at the coclio of the eig Aal GeeralMeetig ad beig eligible, have offered themelve forreappoitmet.

The Board of Director recommed their reappoitmet astattory Aditor.

cost auditos:

M/ P. D. Phade & Aociate, Cot Accotat, Mmbaihave bee reappoited a the Cot Aditor to codct theadit of the cot accot maitaied by the Compay for thefiacial year 201011.

copoRte govenance:

The Report o Corporate Goverace alogwith the Aditor’Certificate regardig compliace of the coditio of CorporateGoverace prat to Clae 49 of the Litig Agreemet iaeed hereto ad form part of the Aal Report.

I term of bclae v of Clae 49 of the Litig Agreemet,a certificate from CMD & CFO, iteralia, cofirmig thecorrecte of the fiacial tatemet, adeqacy of iteralcotrol meare ad reportig of matter to the AditCommittee i term of the aid Clae, i alo ecloed a partof the Aal Report.

Maagemet Dicio ad Aalyi Report otliig the ey evet of the year, idtry ceario ad ri ad otloo i aloaeed hereto ad form part of the report.

diectos’ esponsiBiLity statement:

Prat to reqiremet of sectio 217 2AA of theCompaie Act, 1956 ad o the bai of the iformatiofrihed to them by the tattory aditor ad maagemet, yor Director tate that:

a. i preparatio of the aal accot, the applicable Accotig stadard have bee followed ad there are omaterial departre;

b. they have elected ch accotig policie ad applied

them coitetly ad made dgmet ad etimate thatare reaoable ad prdet o a to give a tre ad fair view of the tate of affair of the Compay at the ed of the yearad of the profit of the Compay for the year;

c. they have tae proper ad fficiet care for themaiteace of adeqate accotig record i accordace with the proviio of the Compaie Act, 1956, forafegardig the aet of the Compay ad prevetigad detectig frad ad other irreglaritie;

d. they have prepared aal accot o a goig cocer bai.

inFomation tecHnoLogy

A) MuLTIPROTOCOL LABEL sWITCHInG (MPLs) Yor Compay ha cceflly completed the proce of MPLs implemetatio i the Compay ad factory adiitiated the proce of owledge maagemet databaeover itraet.

B) InsTALLATIOn OF sAP

Yor Compay i pleaed to iform yo that it hacceflly hifted it accotig platform to sAP ithi fiacial year. The traitio ha bee atifactorily completed ad all accot are maitaied o sAP ow.

paticuLas oF empLoyees, consevation

oF enegy & tecHnoLogy aBsoption,Foeign eXcHange eanings and outgo:

The iformatio reqired to be dicloed with repect toparticlar of employee i accordace with sectio 2172Aof Compaie Act, 1956 i aeed. Detail with repect toCoervatio of Eergy & Techology Aborptio & ForeigEchage, a reqired der sectio 2171e i alo aeedad the aere form part of the Director’ Report.





45


acKnowLedgements:

Yor Director tae thi opportity to epre their iceretha ad appreciatio toward all the employee of TilaagarIdtrie Ltd. TI for their commedable teamwor, wholehearted effort ad ietimable cotribtio to thecotied growth of the Compay.

Yor Director alo tha ivetor, bie parter, cliet,techology provider, vedor, fiacial itittio & ba,

dealer & pplier, reglatory & govermet athoritie,aditor ad toc echage for their cotied pport to theCompay drig the year.

For ad o behalf of the Board of Director

Date: Agt 7, 2010 Amit Dahanukar

Place: Mmbai Chairma ad Maagig Director

anneXue ‘a’ to tHe diectos epot

a) consevation oF enegy

MEAsuREs TAkEn:

1. All biodigeter are worig atifactorily; geerated ga wa tilized for power geeratio i Ga Egie ad team geeratioi boiler. The detail of ga geeratio, comptio ad eqivalet coal aved drig the crret year compared to previo year are a tablated below:

srn

prlr u yr200809

yr200910

1 Bioga Geeratio Lac M3 34.11 34.81

2 spetwah Treated Lac M3 1.08 2.00

3 Ratio of Bioga geeratio to pet wah treated M3/M3 31.58 34.92

4 Bioga utilizatio

a. For steam geeratio i Boiler Lac M3 28.24 18.99

b. For Power Geeratio i Bioga Egie Lac M 3 3.69 14.53

c. Bioga Flared drig tart p & Iterrptio Lac M3 2.18 1.29

A ca be ee from the above figre, the bioga geeratio per M3 of petwah treated ha icreaed by 10.58% drigthe crret year compared to previo year. The flarig loe of bioga have bee redced drig the crret year by 40.83%compared to previo year.

2. The performace of Bioga egie wa atifactory drig the crret year. The performace parameter are a give below:

srn

prlr u yr200809

yr200910

1 Bioga comed for power geeratio Lac M3 3.69 14.53

2 Power Geeratio kWh 429,560 2,787,468

3 Ratio of Power geeratio to bioga comptio kW h/M3 1.16 1.92

A ca be ee from above parameter, the pecific power geeratio per M3 of bioga comed ha icreaed by 65.5 % drigthe crret year compared to previo year.



46


3. Optimized coolig water pply to fermetatioectio of 50kLPD molae baed ditillery plat by replacig 650 M3/hr capacity pmp ad 45kW motor with 150 M3/hr capacity ad 22kW repectively,thereby redcig the coected power load by 13kW. The redced coolig water circlatio rate haalo relted i aal avig of 28,305 M3 of maep water.

4. Optimized the capacity of pet lee trafer pmpi 50kLPD molae baed ditillery plat from 30M3/hr with 9.3 kW motor to 12 M3/hr with 3.73 kW motor reltig i redctio i coected load by

5.57 kW.

5. utilized 24 M3/day of team codeate from MEEa boiler feed water reltig i aal fel Baggaeavig of 200 MT.

B) eseacH & deveLopment Fo new Bands

1. DuRInG THE FInAnCIAL YEAR, YOuR COMPAnY HAs InTRODuCED TWO nEW IMFL BRAnDs:

a dh v.s.o.p

Dche V.s.O.P brady, a ew additio toit brady portfolio. Poitioed i the reglaregmet, the brad wa coceptalized adcreated i the year 200910 for roll ot i the 1t Qarter of 201011. Dche i beig rolled otfirt i the state of Adhra Pradeh ad will befollowed by lache i other tate i the 2 d half of the year.

Dche V.s.O.P brady i a iqe bled of grape ad pecially ditilled etral pirit toprovide traditioal characteritic brady aromaad tate. It ha a mooth brady aroma ad aaritocratic tate of a brady. Dche V.s.O.P

brady will be made available i vario pac ize tartig from 90 ml to 1 li tre.

B mH v.s.o.p

Reearched ad Developed i the Fiacial Yearder review, MH V.s.O.P brady wa lachedi Tn i 200910. Goig by the ethiaticrepoe, the brad ha bee lached i otherew maret lie Podicherry & kerala will belached i karataa ad Adhra Pradeh.

MH V.s.O.P brady trly defie the moothad well balaced tate of the fiet grape piritcreated by epert bleder to give it a pleaattate with a latig frity ote.

2. REVAMPInG OF sEnATE ROYALE WHIskY

seate Royale Whiy wa revamped ad ehaced with a perior grai bled, perior bottle withemboed bradig, ew Moo Carto ad Caiterpac, Tamper proof cap for the maller toc eepig it.

3. REVAMPInG OF MAnsIOn HOusE BRAnDY

Or Flaghip brady, Maio Hoe Brady, waalo revamped ad rolled ot i 200910. The ew Maio Hoe Brady come i attractive family pac bottle. The 375 ad 180 ml were earlier ormalmaret bottle which have bee made a per thefamily pac ow. The 750 ml i ow emboed with

grape erichig the whole eperiece of poeig aMHB bottle. The bled a well ha bee pgraded toprovide a complete 360o eperiece.

4. ADDITIOnAL BRAnDs In THE REGuLAR sEGMEnTs

There were other ew brad viz. Friedz Whiy,9 to 9 Whiy, Royal Clb Whiy, Old MaterBrady, Old Mater Rm, ad Red sqare Whiy, which were coceived ad rolled ot i the firtqarter of 201011 i AP.

5. ADDITIOnAL DEVELOPMEnTs

Mltiple brad were revamped o pacagig e.g.Corrier napoleo Brady, Catle Clb Whiy,Maio Hoe Whiy etc. Thee brad will berolled ot betwee the firt qarter ad ecodqarter of fiacial year 201011.





47


c) tecHnoLogy aBsoption/ innovation and adoption

1. Revere Omoi Plat of 250 M3/day capacity i beig operated coitetly which eparate 125 M 3/

Day 50% a pre water from the efflet which ied a coolig tower maep water thereby redcigfreh water itae.

2. The Mltiple Effect Evaporator MEE Plat forcocetratio of Ditillery efflet after primary adecodary treatmet i beig operated coitetly. Thecocetrated efflet i mied with baggae ad brti boiler. The geerated proce codeate i reed ithe premie thereby redcig freh water itae.

3. Italled ad commiioed 650 kVAR capacitor ba with atomatic power factor pael to maitai power

factor at 0.99 to 1. Thi ha relted i aal avig of ` 2 Lac de to rebate o MPECB electricity bill.

4. Italled ad commiioed oe DG et of 625 kVA ad two it of 1010 kVA each to maitai powerpply to emergecy ad eetial activitie i theproce drig failre of MPECB power.

5. Atomatic voltage tabilizer italled i poweript circit at raw water pmpig tatio & etireload hifted to MPECB/Bioga Egie/DG et aa emergecy meare. Thi ha avoided the e of dieel operated pmp thereby reltig i aaldieel avig of 6.7 kL worth ` 2.66 Lac.

6. Italled ad commiioed 240 BPM capacity ato bottlig lie i Potable Liqor Plat. Thi w i l lhelp to icreae the prodctivity ad redce the cotof mafactrig of 90 & 180 ML pac.

Fr a

tl er r r f r

u yr

200809 yr

200910

a. powe and FueL consumption

1. ELECTRICITY PuRCHAsED FROM MPECB kWh 3,534,334 2,979,384 Amot ` i Lac 148.97 133.67Rate per it `/kWh 4.21 4.05

elr r frBioga Egie kWh 429.560 2,787,468Amot ` i Lac 12.03 72.49Rate per it `/kWh 2.80 2.60

elr r frD G set kWh 536.165 248,308 Amot ` i Lac 89.12 37.18Rate per it `/kWh 16.62 14.97

tl elr kWh 4,500,059 6,015,160 w. a. u r `/kWh 5.56 4.05



48


u yr

200809 yr

200910

B. steam coaL

2. FOR GEnERATIOn OF sTEAM MT 5,471 8,850 Amot ` i Lac 219 338.58 Average rate per MT `/ MT 4,003 3,825.80

BFor geeratio of team MT 10,064 7,379.30 Amot ` i Lac 148.61 202.54 Average rate per MT `/ MT 1,472 2,744.70

Fr For geeratio of team MT 0 908.20 Amot ` i Lac 24.41 Average rate per MT `/ MT 2,687.930

elr c r f r:

name of the prodct uit yr200809

yr200910

EnA kWh/Ltr. 0.17 0.16

IMFL kWh/Cae 0.20 0.22

Diethyl Oalate kWh/kg 0.30 0.25





49


D) FOREIGN EXCHANGE EARNINGS AND OUTGO

During the year, the foreign exchange outgo was ` 9.59 million and foreign exchange earnings were ` 52.51 million.

ANNEXURE ‘B’ TO THE DIRECTORS’ REPORT

Information as per Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, andforming part of the Directors’ Report for the year ended March 31, 2010.

Sr.

No

Name Designation GrossRemuneration

(`)/ Month

Qualifications Age

(Years)

TotalExperience

(Years)

Date of Commencementof Employment

Last Name of Employment &

Designation

1 Mr. AmitDahanukar

Chairman andManaging Director

1,610,385 B.E (ELEC),

M.S (U.S.A)

34 9 Years 07.11.2001 First Employment

2 Mrs. Shivani AmitDahanukar

Executive Director 1,035,730 M.B.A, L.L.B 33 4 Years 01.06.2006 First Employment

3 Dr. SukhbirPuri

Sr. VP –Operations

687,500 M.Sc, Ph.D 61 36 Years 27.04.2009 Khemani Group-Group President

4 Mr. Bineet Walia

Sr.V.P. (Sales,Marketing)

416,667 B.Sc, M.Sc. ACM, MMS

50 19 Years 08.01.2008 Indian Army-Colonel

5 Dr. KeshabNandy

Sr. V.P. - Legal &Chief VigilanceOfficer

400,000 B.A, M.A,M.H.R.M,PGDPM & I.R,LLB, DCM,M.Phil, Ph.D

54 31 Years 03.09.2007 UTI Technology Services Ltd- Sr. VP-HR, IR, Legal,Quality, Admin,Facility MGT &CVO

6 Mr. LalitSethi

C.F.O 395,833 B.Com, FCA 44 22 Years 19.11.2007 High Polymer LabsLtd- Dy. GeneralManager

7 Mr. CollinPal

FinancialController

291,667 B.Com, M.Com,LLB, CA

50 23 Years 01.12.2008 Mason & Summers-C.F.O

8 Mr. RajaMukherjee

General Manager –Marketing

266,667 B.Pharma,PGDBM,EPBM

33 10 Years 16.06.2009 DRL- Sr. Manager& Head- DRFHE

9 Mr. Abhay SinghChauhan

General Manager(Technical)

262,502 B.Sc. DIFAT,IGB

52 26 Years 06.08.2008 Liquors India- GM-Operations

10 Mr. Vijay Singh Borse Associate VicePresident 250,000 B.Sc, B.Sc Tech(Petrochemical) 54 28 Years 18.01.2010 Jubilant OrganosysLtd.- Associate Vice-President(Operations)

11 Mr. G. S.Krishnan

DGM- Finance 200,000 B.Sc 57 37 Years 01.10.2008 IndusInd Bank Ltd.-Chief Manager



50


anneXue - c

Diclore der Clae 12 of the secritie ad Echage Board of Idia Employee stoc Optio scheme ad Employee stoc Prchae scheme Gidelie, 1999

sr.

n.

prlr esop sh, 2008

Firt Grat secod Grat

1 nmber of toc optio grated 111,000 cm Bo 1,444,521 e Bo

2 The Pricig Formla The eercie price hall

be calclated at a dicot

ot higher tha 75% of theaverage of the daily high

ad low of the price for the

Compay' eqity hare

qoted o Bombay stoc

Echage, drig the 15 day

precedig the date of vetig

of toc optio bect to

miimm eercie price

beig ` 40/ per toc optio

The eercie price hall

be calclated at a dicot

ot higher tha 75% of theaverage of the daily high

ad low of the price for the

Compay' Eqity share

qoted o Bombay stoc

Echage, drig the 15 day

precedig the date of vetig

of toc optio bect to

miimm eercie price

beig ` 75/ per toc optio

3 nmber of toc optio veted

4 nmber of toc optio eercied

5 Total mber of hare ariig a a relt of eercie of toc optio

6 nmber of toc optio laped

7 nmber of toc optio cacelled 20,000 cm Bo

8 Variatio i the term of toc optio n.A. n.A.

9 Moey realied by eercie of toc optio `

10 Total nmber of toc optio i force 91,000 cm Bo i.e.

273,000 e Bo

1,444,521 e Bo

11 Employeewie detail of toc optio grated to:





51


( sr mrl prl

name no. of toc optio grated

Firt Grat secod Grat

Dr. shbir Pri nIL 30,000

Dr. kehab nady 27,000 30,000

Mr. Bieet Walia 3,000 nil

Mr. Lalit sethi 21,000 30,000

Mr. Raa Mheree nIL 21,000

Mr. Garav Thar 24,000 21,000

ii Employee who were grated, drig ay oe year, toc optio

amotig to 5% or more of the toc optio grated drig the year.

nil nil

iii Idetified employee who were grated toc optio, drig ay

oe year, eqal or eceedig 1% of the ied capital ecldig

ottadig warrat ad coverio of the Compay at thetime of grat.

nil nil

12 Dilted Earig Per share EPs prat to ie of hare o

eercie of Optio calclated i accordace with Accotig

stadard As 20 'Earig Per share'

Refer note vi e of schedle ‘L’ of the note o Accot

13 Impact of the differece betwee the Itriic Vale of the Optio

ad the Fair Vale of the Optio o Profit ad o EPs

Refer note vi e of schedle ‘L’ of the note o Accot

Weighted average eercie price 82.15 51.92

Weighted average fair vale of the optio 66.80 49.11

The secritie ad Echage Board of Idia 'sEBI' ha precribed two method to accot for toc grat i the Itriic Valemethod; ii the Fair Vale method. The Compay adopt the Itriic Vale method to accot for the toc optio, it grat to

the employee. The Compay alo calclate the Fair Vale of the toc optio at the time of grat, ig Blacschole pricig

model with the followig amptio:

d f r 2-Jul-09 28-Jan-10

1. Ri Free Iteret Rate 5.79%6.45% 5.87 7.13%

2. Epected Life 2 5 year 2 5 year

3. Epected Volatility 69.59% 73.55% 69.29%

4. Divided Yield 2% 2%

5. Price of the derlyig hare i maret at the time of the optio

grat `

143.45 99.45

sr.n.

prlr esop sh, 2008



52


Corporate Governance Report

1. company’s pHiLosopHy on tHe codeoF govenance

Yor Compay firmly believe i good corporategoverace which ha bee a trog edif ice of the Compay,dly pported by pillar of ctomer faith, depoitor’cofidece, itittioal trt ad ivetor’ atifactio.Compay believe i adoptig bet corporate goveracepractice ad ha et it growth path o the fodatio of fair bie, efficiet, afe ad trted fiacial policie adare maiteace of highet tadard of traparecy,accotability, itegrity ad ecellece i ervice of alltaeholder.

Yor Compay i already i btatial compliace of the proviio of the Voltary Gidelie o CorporateGoverace ied by the Miitry of Corporate Affair i2009, a bechmar for the Corporate sector i achievigthe highet tadard of Corporate Goverace.

Yor Compay ha complied with all the reglatio atiplated by the secritie ad Echage Board of Idiai the Litig Agreemet icldig Clae 49 pertaiig toCorporate Goverace.

2. Boad oF diectos

The Compay i maaged by the Board of Directorcompriig of emiet profeioal havig vat addiverified eperiece i the field of idtry, fiace,law, etc. A o March 31, 2010, the Board of Director of the Compay compried of a optimm combiatioof Eective ad noEective Director. IdepedetDirector o the Board of Director of the Compay doot have ay peciary relatiohip with the Compay,Promoter or Maagemet which may affect their dgmet ad fctioig i ay maer.

Drig the fiacial year der review, eve 7 meetig

of the Board of Director were held o the followig dayad the maimm time gap betwee two 2 meetig didot eceed for 4 moth:

sr.n.

d f hBr m

sr.n.

d f h Br m

1 May 14, 2009 5 Agt 14, 20092 May 19, 2009 6 October 24, 20093 jly 02, 2009 7 jaary 28, 20104 jly 24, 2009

ATTEnDAnCE OF DIRECTORs AT THE BOARD MEETInGs AnD GEnERAL MEETInGs

n f h drr p/ cr nbrf Br

mhl

nbrf Br

m a

a h l

agm hl 01.08.2009

a h l

egm hl 24.08.2009

Mr. Amit Dahaar Chairma & Maagig Director E 7 4 Ye YeMr. shivai Amit Dahaar Eective Director E 7 5 Ye YeMr. s. V. Mzmdar DirectornE, I 7 6 no noMr. V. B. Haribhati DirectornE,I 7 7 Ye YeDr. Vih kahere DirectornE,I 7 7 Ye YeDr. Ravidra Bapat DirectornE,I 7 7 Ye YeMr. P.R.k. Reddy* Whole Time Director 7 4 Ye noMr. C.V. Bilai** DirectornE 7 5 Ye YeMr. Mada Goyal*** DirectornE,I 7 4 n.A. Ye

* Ceased to be the Director of the Company w.e.f. August 24, 2009

** Appointed as Additional Director w.e.f. July 02, 2009 & re-appointed on August 01, 2009

*** Appointed as Additional Director w.e.f. August 03, 2009 & re-appointed on August 24, 2009

NE- Non- Executive, I- Independent, E- Executive

bOARD AND MANAGEMENT REPORTS Corporate Governance Report




53


MEMBERsHIP In BOARD OF DIRECTORs AnD BOARD COMMITTEEs OTHER THAn TI

n f h drr mbrh Brhr h ti#

chrh Brc hr h ti*

mbrh Brc hr h ti*

Mr. Amit Dahaar nil nil nilMr. shivai Amit Dahaar nil nil nilMr. s. V. Mzmdar 3 1 4Mr. V. B. Haribhati 7 4 4Dr. Vih kahere 2 2 nilDr. Ravidra Bapat 2 nil nilMr. P.R.k. Reddy** nil nil nilMr. C.V. Bilai*** 1 nil nil

Mr. Mada Goyal**** nil nil nil# Only Directorship of Public Ltd. Company is considered.

* Only Chairmanship/Membership of the Audit Committees and the Investor Grievance Committees constituted pursuant to Clause 49

of the Listing Agreement is considered.

** Ceased to be the Director of the Company w.e.f. August 24, 2009.

*** Appointed as Additional Director w.e.f. July 02, 2009 & re-appointed on August 01, 2009

**** Appointed as Additional Director w.e.f. August 03, 2009 & re-appointed on August 24, 2009

NE- Non- Executive, I- Independent, E- Executive

3. audit commiTee

The Adit Committee, amogt the area metioed ithe Clae 49 of the Litig Agreemet ad sectio 292A of the Compaie Act, 1956, covered the followig area

drig the year der review:a. Overeeig the Compay’ fiacial reportig

proce ad diclore of fiacial iformatio of theCompay to ere athetic ad credible fiacialiformatio.

b. Recommedig to the Board, the appoitmet, reappoitmet of stattory Aditor, fiatio of aditfee ad approvig paymet for ay other ervice.

c. Reviewig with the maagemet, the aal adqarterly fiacial tatemet before bmiio tothe Board for approval, with particlar referece tothe followig:

Matter reqired to be iclded i the Director’Repoibility statemet to be iclded i theBoard’ Report i term of Clae 2AA of sectio 217 of the Compaie Act, 1956;

Chage, if ay, i accotig policie adpractice ad reao for the ame;

Maor accotig etrie ivolvig etimate baed o the eercie of dgemet by maagemet;

sigificat adtmet made i the fiacialariig ot of adit fidig;

Compliace with litig ad other legalreqiremet pertaiig to the fiacialtatemet;

Diclore of ay related party traactio, ad;

Qalificatio i the draft adit report.

d. Reviewig with Maagemet, performace of stattory ad Iteral Aditor ad adeqacy of iteral cotrol ytem.

e. Reviewig the adeqacy of iteral adit fctio.

f. Dicig with Iteral Aditor of ay igificat

fidig ad followp thereo.g. Reviewig the fidig of ay iteral ivetigatio

by the Iteral Aditor.



54


h. Reviewig the followig iformatio:

Maagemet Dicio ad Aalyi of

fiacial coditio ad relt of operatio;

statemet of igificat related party

traactio;

Maagemet letter/ letter of iteral cotrol

weaee ied by the stattory Aditor;

Iteral adit report relatig to iteral cotrol

weaee;

The appoitmet, removal ad remeratio of

the Iteral Aditor;

Fiacial statemet ad ivetmet made by

the lited bidiary compaie.

The Adit Committee i veted with the eceary power to

achieve it obective.

The Adit Committee comprie of epert pecialied i area

of accotig/ fiacial maagemet. Mr. V.B. Haribhati,

noEective ad Idepedet Director, a profod ad

eperieced Chartered Accotat, i the Chairma of the

Adit Committee. The Eective Director, the Chief Fiacial

Officer, Iteral Aditor ad the stattory Aditor are

permaet ivitee to the Meetig. The Cot Aditor are aloivited to atted the Adit Committee Meetig, a ad whe

reqired.

Drig the fiacial year der review, the Adit Committeemet for 4 time o the followig date:

sr.n.

d f h m

sr.n.

d f h m

1 May 14, 2009 3 October 24, 20092 jly 24, 2009 4 jaary 28, 2010

The Cotittio of the Adit Committee ad attedace of theMember of the Committee are a follow:

sr.n.

nf hdrr

p/cr

Qlf/prf

m l

Hlrh yr

a

1. Mr. V. B.Haribhati

ChairmanE,I

Chartered Accotat

4 4

2. Mr. s. V.

Mzmdar

Member

nE,I

Bachelor of

Law

4 4

3. Dr. Vihkahere

MembernE,I

Chartered Accotat& Cot Accotat

4 4

4. Mr. C.V.Bilai*

MembernE

MA, Certified Aociate of Idia Ititteof Baer

4 3

* Appoited a Director w.e.f. jly 02, 2009nE – no Eective, I Idepedet

Mr. Garav Thar, Compay secretary, act a the secretary of the Committee.

4. emuneRtion commiTeeThe term of referece of Remeratio Committeeivolve determiatio of the Compay’ policy o pecificremeratio pacage for Eective Director ad noEective Director i cooace with the idtry practice. The Remeratio Committee ere eqity,faire ad coitecy ad the recommedatio of Remeratio Committee are coidered ad approved by the Board, bect to the approval of hareholder, wherever eceary.

Mr. V.B. Haribhati, a noEective ad IdepedetDirector, i the Chairma of the RemeratioCommittee.

Drig the year der review, the Committee met oce oMay 14, 2009.





55


The Cotittio of the Remeratio Committee adattedace of Committee Member are a follow:

name of theDirector

Poitio/Category

Meetig detail

Held drigthe Year

Atteded

Mr. V. B. Haribhati ChairmanE, I

1 1

Dr. Vih kahere MembernE, I

1 1

Mr. s. V. Mzmdar MembernE, I

1 1

Mr. C.V. Bilai* MembernE

1 n.A.

* Appoited a Director w.e.f. jly 02, 2009

nE – no Eective, I Idepedet

5. compensation commiTee

The term of referece of Compeatio Committee, iteralia, ivolve acertaiig the detailed term ad coditiofor iig EsOP ad/ or sweat Eqity share ad decidigtheir etitlemet ad allotmet, wherever eceary. Theterm of referece of Compeatio Committee aloiclde admiitratio of Employee stoc Optio schemead eerciig the power ad performig the dtie aprecribed der secritie ad Echage Board of IdiaEmployee stoc Optio scheme ad Employee stoc Prchae scheme Gidelie, 1999.

Dr. Vih kahere, a noEective ad IdepedetDirector, i the Chairma of the CompeatioCommittee.

Drig the year der review, the Committee met twice othe followig date:

sr.n.

d f h m

sr.n.

d f h m

1 jly 2, 2009 2 jaary 28, 2010

The Cotittio of the Compeatio Committee adattedace of Committee Member are a follow:

name of theDirector

Poitio/Category

Meetig detailHeld drig

the Year Atteded

Dr. Vih kahere Chairma nE, I 2 2

Mr. shivai AmitDahaar

Member ED 2 2

Dr. Ravidra Bapat Member nE, I 2 2

nE – noEective, I – Idepedet, ED – EectiveDirector

REMunERATIOn TO DIRECTORs

Remeratio of Eective Director i determied depedigpo the performace of the Compay, idividal director’performace ad prevailig idtry orm. salary adcommiio paid to Eective Director are withi the limitprecribed der the Compaie Act, 1956. I additio to theittig fee, which i withi the ceilig precribed by CetralGovermet, for attedig Meetig of the Board of Director, Adit ad other Committee Meetig, the no EectiveDirector are remerated with Commiio ot eceedig

oe percet of the et profit of the Compay a compted ithe maer provided by sectio 198 1 of the Compaie Act,1956 ad prat to the approval grated by the hareholderat the 72d Aal Geeral Meetig held o Agt 22, 2007.



56


Detail of remeratio paid/ to be paid to all Director of the Compay for the Fiacial Year 200910 are a follow:

n f h drr slr &prq (`

crb sa/ pF (`

s F****(`

c (`

Mr. Amit Dahaar 18,100,620 1,224,000 nil 4,615,990Mr. shivai Amit Dahaar 11,276,760 1,152,000 nil 11,511,851

Mr. s. V. Mzmdar nil nil 55,000 798,021

Mr. V. B. Haribhati nil nil 60,000 798,021

Dr. Vih kahere nil nil 70,000 798,020

Dr. Ravidra Bapat nil nil 45,000 798,020

Mr. P.R.k. Reddy* nil nil nil nil

Mr. C.V. Bilai** nil nil 35,000 798,020

Mr. Mada Goyal*** nil nil 15,000 798,020

* Ceaed to be the Director of the Compay w.e.f. Agt 24, 2009

** Appoited a Additioal Director w.e.f. jly 02, 2009 & reappoited o Agt 01, 2009

*** Appoited a Additioal Director w.e.f. Agt 03, 2009 & reappoited o Agt 24, 2009**** sittig fee iclde paymet to the Director for attedig Board Meetig ad Committee Meetig.

The particlar of Eqity share of the Compay held by theDirector are frihed below:

n f h drr nbr f eq shr hl

a mrh31, 2010

a mrh31, 2009

Mr. Amit Dahaar 4,799,653 2,236,562

Mr. shivai Amit Dahaar 13,123,681 250,282

Mr. s. V. Mzmdar 2,517 839Mr. V. B. Haribhati 3,000 1,000

Dr. Vih kahere nil nil

Dr. Ravidra Bapat 6,750 2,250

Mr. P.R.k. Reddy* nil nil

Mr. C.V. Bilai** nil nil

Mr. Mada Goyal*** nil nil

* Ceaed to be the Director of the Compay w.e.f. Agt 24, 2009

** Appoited a Additioal Director w.e.f. jly 02, 2009 & reappoited o Agt 01, 2009

*** Appoited a Additioal Director w.e.f. Agt 03, 2009 &reappoited o Agt 24, 2009

6. sHaeHoLdes/ investos gievancecommiTee

The shareholder / Ivetor Grievace Committee,amogt the area, metioed i the clae 49 of theLitig Agreemet i erig epeditio redreal of shareholder’ ad Ivetor’ complait lie oreceiptof balace heet, oreceipt of hare certificate potrafer of hare, demat credit, rematerialiatio, trafer,plit, tramiio of hare, etc.

Mr. s. V. Mzmdar, noEective ad Idepedet

Director ad a profod ad eperieced Lawyer, ithe Chairma of the shareholder/ Ivetor GrievaceCommittee.

Drig the year der review, the committee met fortime o the followig date:

sr.n.

d f h m

sr.n.

d f h m

1 May 14, 2009 3 October 24, 2009

2 jly 24, 2009 4 jaary 28, 2010

The Cotittio of the hareholder/ ivetor grievacecommittee ad attedace of the Member of the





57


Committee are a follow:

name of theDirector

Poitio/Category

Meetig detailHeld drig

the Year Atteded

Mr. s. V. Mzmdar Chairma

nE,I

4 4

Mr. V. B. Haribhati Member

nE,I

4 4

Mr. Amit Dahaar Member

E

4 3

Mr. C.V. Bilai* Member

nE

4 3

* Appoited a Director w.e.f. jly 02, 2009

E Eective, nE – no Eective, I Idepedet

Mr. Garav Thar, Compay secretary, i the CompliaceOfficer of the Compay.

sTATEMEnT OF THE VARIOus COMPLAInTsRECEIVED AnD CLEARED DuRInG THEFInAnCIAL YEAR 2009-2010

natre of Complait

Opeig Received Reolved Pedig

no receipt of hare certificatelodged fortrafer

nil 5 5 nil

no receipt of divided warrat

nil 8 8 nil

no receipt of aal report

nil 14 14 nil

no receipt of demat reected/c’

nil 1 1 nil

no receipt of demat credit

nil 1 1 nil

no receipt of

Bo share

nil 4 4 nil

TOTAL nil 33 33 nil

7. suBsidiay companies

The Compay ha two wholly owed bidiarie viz.M/. Prag Ditillery P Ltd. havig it Plat i the stateof Adhra Pradeh ad M/. srya Orgaic Chemical PLtd. havig it Plat i the state of karataa. However,thee bidiarie do ot fall der the category of “materialolited Idia bidiarie” i term of Clae 49 IIIof the Litig Agreemet i.e. whoe trover or et wortheceed 20% of the coolidated trover or etworthrepectively, of the Compay ad it bidiarie i theimmediately precedig accotig year.

The Mite of the Board Meetig of bidiary compaieare tabled before the Board of Director at the beqetBoard Meetig.

8. sHae tRnsFe commiTee

The term of referece of the share Trafer committeeivolve erig timely proceig of reqet for haretrafer, dplicate hare certificate, demat credit,rematerialiatio, plit, tramiio of hare, etc. ad forthi prpoe, it meet o a weely bai.

Mr. Amit Dahaar, Chairma & Maagig Directorof the Compay, i the Chairma of the share TraferCommittee ad Mr. shivai Amit Dahaar, Eective

Director ad Mr. Garav Thar, Compay secretary arethe other Member of the Committee.

Mr. Garav Thar, Compay secretary, i the CompliaceOfficer of the Compay.

9. code oF conduct Fo tHe BoadoF diectos and tHe senio

management.

The Compay ha formlated ad implemeted a Codeof Codct for all it Director, seior Maagemet icompliace with Clae 49ID of the Litig Agreemet. All the Board Member ad seior Maagemet of the

Compay have affirmed compliace with the aid Code of Codct for the Fiacial Year eded March 31, 2010.



58


10. discLosue pRctices Fo pevention oF inside tRding

A reqired by the secritie ad Echage Board of Idia Prohibitio of Iider Tradig Amedmet Reglatio, 2008, theCompay ha adopted the Policy for Corporate Diclore Practice for Prevetio of Iider Tradig with effect from December 1,2002. The Policy i applicable to all the Director ad Deigated Employee of the Compay, who are epoed to or epected to beepoed to pblihed price eitive iformatio abot the Compay.

11. cmd/cFo cetiFication

I accordace with the reqiremet of clae 49V of Litig Agreemet, a certificate from Mr. Amit Dahaar, Chairma &Maagig Director ad Mr. Lalit sethi, Chief Fiacial Officer of the Compay, o the fiacial tatemet of the Compay waplaced before the Board i the Meetig held o Agt 7, 2010 ad the ame i aeed to thi report.

12. geneRL Body meetings

The vee, time ad particlar of pecial reoltio paed at the lat three Aal Geeral Meetig of the Member of theCompay are a follow:

yr m d,d & t

v sl l p

200809 satrday,

Agt 01, 2009 at11.00 a.m.

P.O. Tilaagar,

Tal. shrirampr,

Dit. Ahmedagar,Maharahtra – 413 720.

1. Reviio i remeratio payable to Mr. Amit Dahaar,Chairma & Maagig Director.

2. Reviio i remeratio payable to Mr. shivai Amit Dahaar,Eective Director.

3. Reappoitmet of Mr. Amit Dahaar a Chairma & Maagig Director.

4. Reappoitmet of Mr. shivai Amit Dahaar a Eective Director.

200708 Wededay,

Agt 6, 2008

at 11.00 a.m.

Babaaheb Dahaar Hall,Maharahtra Chamber of

Commerce & Idtry,

k. Dbhah Marg,

Mmbai – 400 001

1a Athoriatio for EsOP for employee of the Compay.

1b Athoriatio for EsOP for employee of bidiarie of the Compay.

2.Reviio i remeratio payable to Mr. Amit Dahaar, Chairma& Maagig Director.

3. Reviio i remeratio payable to Mr. shivai Amit Dahaar.

4. Iace of Foreig Crrecy Covertible Bod ad/or GlobalDepoitory Receipt.

200607 Wededay,

Agt 22, 2007

at 3.00 p.m.

Babaaheb Dahaar Hall,Maharahtra Chamber of

Commerce & Idtry,

k. Dbhah Marg,

Mmbai – 400 001

1. Reviio i remeratio payable to Mr. Amit Dahaar,Chairma & Maagig Director.

2. Appoitmet of Mr. shivai Amit Dahaar a Eective Director.

3. Paymet of Commiio to no Eective Director.

4. Alteratio of Article 3 of the Article of Aociatio of the Compay. All pecial reoltio et ot i the notice for the Aal Geeral Meetig were paed by the shareholder at the repectivemeetig with reqiite maority.





59


The vee, time ad particlar of pecial reoltio paed at the Etra Ordiary Geeral Meetig of the Member of the Compay held drig the fiacial year der review are a follow:

yr m d, d

& t v sl l p

200910 Thrday,

je 18, 2009 at11.00 a.m.

P.O. Tilaagar,

Tal. shrirampr,

Dit. Ahmedagar, Maharahtra – 413720.

Ie of 4,170,000 Covertible Warrat o preferetial allotmet bai.

200910 Moday,

Agt 24, 2009 at11.00. a.m.

Babaaheb Dahaar Hall,

Maharahtra Chamber of Commerce & Idtry,

k. Dbhah Marg, Mmbai, Maharahtra 400 001

Ie ad allotmet of bo hare ithe ratio of 2 eqity hare for every 1eqity hare.

PAssInG OF REsOLuTIOns BY POsTAL BALLOT

no item of bie which reqired the Member’ approvalthrogh potal ballot wa traacted drig the fiacial

year der review. Accordigly, the Compaie PotalBallot Rle 2001 are ot applicable to the Compay drig the Fiacial Year.

A special Reoltio der sectio 16A of the Compaie Act, 1956, eeig coet of the Member for the iertioof ew clae i the obect clae of the Memoradmof Aociatio of the Compay i propoed to be paedthrogh Potal Ballot ad relt of the ame hall beaoced i the eig Aal Geeral Meetig.

13. discLosues

A) DIsCLOsuREs On MATERIALLY sIGnIFICAnTRELATED PARTY TRAnsACTIOns HAVInG

POTEnTIAL COnFLICT WITH THE InTEREsTsOF THE COMPAnY AT LARGE.

The particlar of related party traactio have beegive i the note to Accot. However, thee traactio were carried ot o a armlegth bai ad are ot liely to have ay potetial coflict with the iteret of theCompay.

B) RIsk MAnAGEMEnT FRAME WORk

The Compay ha idetified the maor ri area adreglarly review the ri aemet ad cotrol procei the Compay ad the ri miimiatio procedre areperiodically reviewed by the Board.

C) DETAILs OF nOn-COMPLIAnCE BY THECOMPAnY, PEnALTIEs, sTRICTuREs IMPOsEDOn THE COMPAnY BY sTOCk ExCHAnGE OR sEBI OR AnY sTATuTORY AuTHORITY On AnY MATTER RELATED TO CAPITAL MARkETs,DuRInG THE LAsT THREE YEARs.

The Compay ha complied with all the proviio of Litig Agreemet with stoc Echage ad applicablereglatio ad gidelie of sEBI, a applicable from timeto time. There were o itace of ocompliace of ay matter related to the capital maret drig the lat three year.

D) COMPLIAnCE WITH nOn-MAnDATORY REQuIREMEnTs OF CLAusE 49 OF THE LIsTInG AGREEMEnT:

The Compay ha complied with the followig omadatory reqiremet i term of Clae 49 of theLitig Agreemet:

th Br

The Compay ha a Eective Chairma adhi office, with reqired facilitie, i provided admaitaied by the Compay. no policy ha bee fiedfor tere of appoitmet of Idepedet Director.

r c

Detail already give der the captio 'RemeratioCommittee' i the earlier part of the Report.



60


shrhlr h

I additio to pblihig i leadig Eglih adMarathi ewpaper havig wide circlatio, theCompay pblihe it qarterly ad aal fiacialrelt o it webite www.tilid.com.

a Qlf

For the fiacial year 200910, there were o aditqalificatio to the Compay' fiacial tatemet.The Compay cotie to adopt bet practice toere qalified fiacial tatemet.

tr Br mbr

Coiderig the eperiece of the Member of theBoard i their repective area of pecialiatio, opecific traiig programme i coidered eceary for the Board Member. However, the Board, atit vario meetig i appried of the bie

trategy, operatio, chage i the techology,reglatory chage ad vario corporate actio which facilitate the Board Member to tay abreat with the chage i the bie eviromet. Aidividal oiig the Board i preeted with a brief bacgrod of the Compay ad i iformed of Compay’ importat policie icldig the Code of Codct for the Director ad seior Maagemetof the Compay.

mh fr l prfr f nex Br mbr

The Compay doe ot have a formal mechaimfor evalatio of performace of the no Eective

Board Member. The Board, at it dicretio, may coider ch reqiremet i ftre.

whl Blr pl

The Maagemet ha alway ecoraged theemployee of the Compay to raie their cocerrelatig to frad, malpractice or ay other activity orevet which i agait the Compay' iteret. Every employee who oberve ethical behavior ca brigto the attetio of the immediate reportig officer who i reqired to report the ame to the Chairmaad Maagig Director/ Adit Committee. Apartfrom that, ay employee may report directly to theChairma & Maagig Director/ Adit Committee,ay matter reqirig immediate redreal.

14. means oF communication:

I) The qarterly/ half yearly/ aal relt are reglarly bmitted to the stoc Echage i accordace with the proviio of the Litig Agreemet adreglatio ied by secritie ad Echage Board

of Idia ad are pblihed i ewpaper lie TheFree Pre joral, navhati ad Pyaagri. Theeare ot et idividally to the shareholder.

Drig the year der review, there were o officialew releaed or preetatio made to the itittioalivetor ad aalyt by the Compay.

II) Maagemet Dicio ad Aalyi form part of the Aal Report.





61


15. geneRL sHaeHoLde inFomation:

I AnnuAL GEnERAL MEETInG

Date ad Time : Moday, september 20, 2010 at 11.00 a.m.

Vee : P.O. Tilaagar, Tal. shrirampr, Dit. Ahmedagar, Maharahtra – 413720.

II FInAnCIAL CALEnDAR :

Fiacial Year : April 1, 2010 to March 31, 2011.

Fiacial reportig of relt

Qarterly adited relt : Withi forty five day from the ed of the qarter.

Aal adited relt : Withi ity day from the ed of the lat qarter.

III BOOk CLOsuRE DATE : Wededay, Agt 25, 2010

IV DIVIDEnD PAYMEnT DATE : O or after september 20, 2010

V LIsTInG On sTOCk ExCHAnGEs

The Bombay stoc Echage Limited

(Scrip Code: 507205)

natioal stoc Echage of Idia Limited

(Scrip Code: TI)

The Compay ha paid the litig fee for the year 201011 to the aid Bombay stoc EchageLimited ad natioal stoc Echage of Idia Limited.

VI DEMAT IsIn nO. FOR EQuITY sHAREs

: InE133E01013

The Compay ha paid ctodial fee for the year 201011 to natioal secritieDepoitory Limited ad Cetral Depoitory service Idia Limited o the bai of miimm amot to be paid a per the omial vale of admitted ecritie.

VII MARkET PRICE DATA : Mothly high & low qotatio of the hare of the Compay traded at Bombay stoc Echage Ltd. for the year 20092010 are frihed below:



62


mh mh’ Hhpr(`

mh’ L pr(`

vl (n. Bse sx Hh

Bse sx L

April, 2009 99 64 23,711 11,492 9,546

May, 2009 144 80 159,747 14,931 11,621

je, 2009 151 116 112,553 15,600 14,017

jly, 2009 202 130 143,799 15,733 13,220

Agt, 2009 236 165 264,492 16,002 14,684

september, 2009 233 *67 401,898 17,143 15,357

October, 2009* 78 62 319,630 17,493 15,805

november, 2009* 75 57 460,741 17,290 15,331

December, 2009* 97 67 1,007,893 17,531 16,578

jaary, 2010* 114 94 1,061,698 17,790 15,982

Febrary, 2010* 106 95 920,832 16,669 15,652

March, 2010* 135 100 8,734,919 17,793 16,438

* E Bo Price pot bo hare ied i the ratio of 2:1 2 Bo Eqity share for every 1 Eqity share held oseptember 03, 2009.

sk prfr r Bse senseX

Performace of the Compay’ share Price i Compario to the BsE sEnsEx i give below:

Financial Year 2009-10

Stock Performance

A p r - 0 9

M a y - 0 9

J u n - 0 9

J u l - 0 9

A u g - 0 9

S e p - 0 9

O c t - 0 9

N o v - 0 9

D e c - 0 9

J a n - 1 0

F e b - 1 0

M a r - 1 0

19,000

17,000

15,000

13,00011,000

9,0007,000

5,000

3,0001,000

140.00

120.00

100.00

80.00

60.00

40.00

20.00

0.00

T I B S E p r i c e

B S E S e n s e x

TI BSE Price (`) BSE Sensex

note: Cloig Price of April 09 – Agt 09 adted for bo ie i the ratio of 2:1 2 Bo Eqity share for every 1 Eqity share held o september 03, 2009





63


VIII REGIsTRAR & TRAnsFER AGEnTs

Bighare service Pvt. Ltd.

E2/3, Aa Idtrial Etate, saivihar Road,

saiaa, Adheri E, Mmbai – 400 072

Ph: 022 2856 0652/53

022 4043 0200

Fa: 022 2847 5207

Ix sHARE TRAnsFER sYsTEM : share trafer i phyical form have to be lodged with the Regitrar ad Trafer Aget.

All hare received for trafer are regitered ad retred withi a period of thirty day fromthe date of lodgemet, provided the docmet are valid ad complete i all repect.

I accordace with the sEBI gidelie, the Compay offer the facility of trafercmdemat to hareholder after hare trafer are regitered i phyical form.

x sHAREHOLDInG PATTERn As On MARCH 31, 2010

cr f shrhlr n. f shr hl % f hl

Promoter Holdig:

Idia Promoter 19,840,325 61.41

Pblic Holdig:

Itittio

Mtal Fd/uTI 741,730 2.30

Fiacial Itittio / Ba 12,711 0.04

Foreig Itittioal Ivetor 2,422,702 7.49

no Itittio

Bodie Corporate 1,412,701 4.37Idividal 7,093,826 21.96

Clearig Member 689,291 2.13

nRI 96,714 0.30

32,310,000 100.00



64


xI) DIsTRIBuTIOn OF sHAREHOLDInG As On MARCH 31, 2010

shr hl f l l f

shr Hlr shr a

` nbr % tl i ` % tl

(1 (2 (3 (4 (51 5,000 8,701 82.83 8,906,690 2.76

5,001 10,000 839 7.99 6,176,980 1.91

10,001 20,000 501 4.77 7,096,530 2.20

20,001 30,000 154 1.47 3,968,160 1.23

30,001 40,000 79 0.75 2,731,190 0.85

40,001 50,000 35 0.33 1,616,370 0.50

50,001 100,000 82 0.78 5,995,550 1.86

100,001 ad above 114 1.09 286,608,530 88.71

10,505 100.00 323,100,000 100.00

xII DEMATERIALIsATIOn OFsHAREs : Tradig i Eqity share of the Compay i permitted oly i dematerialied form. TheCompay’ hare are held i dematerialied form to the etet of 89.94% of the total o. of ied ad paid p capital a o March 31, 2010.

xIII PL AnT LOCATIOns : i Tilaagar Idtrie Ltd.P. O. Tilaagar, Tal. shrirampr,Dit. Ahmedagar,Maharahtra – 413 720

ii Prag Ditillery P Ltd.R.s. no. 199/1, 200/2,Bicca Bol, Raaagaram Road,nallamilli, Ragampeta Madal,Eat Godavari Ditrict, A.P. – 533 343

iii srya Orgaic Chemical P Ltd.no. 140, Tavaregera Village,

khtagi Tala, koppal Ditrict,karataa – 584 131

xIV) ADDREss FOR CORREsPOnDEnCE

: Mr. Garav Thar,Compay secretary & Compliace OfficerTilaagar Idtrie Ltd.,Corporate Office: 3rd Floor,Idtrial Arace Bldg.Chrchgate, Mmbai 400 020.Tel. : 022 22831718/ 16Fa : 022 2204 6904 Webite : www.tilid.comEmail : [email protected]





65


Declaration on Code o Conduct

The Board of Director

Tilaagar Idtrie Ltd.,Corp. Office: 3rd Floor,Idtrial Arace Bildig,

Chrchgate, Mmbai 400 020.

Dear sir,

Thi i to cofirm that the Board ha laid dow a Code of Codct for all Board member ad the seior Maagemet of the Compay.The Code of Codct ha alo bee poted o the webite of the Compay.

It i frther cofirmed that all Director ad seior Maagemet of the Compay have affirmed compliace withi the Code of Codctof the Compay for the year eded March 31, 2010, a eviaged i clae 49 of the Litig Agreemet with the stoc Echage.

For Tilaagar Idtrie Ltd.

sd/

Place: Mmbai Amit Dahanukar

Dated: Agt 7, 2010 Chairma ad Maagig Director

CMD & CFO Certifcation

To,

The Board of Director

Tilaagar Idtrie Ltd.,Corp. Office: 3rd Floor, Idtrial Arace Bildig,

Chrchgate, Mmbai 400 020.

We hereby certif y that:

a We have reviewed fiacial tatemet for the year eded March 31, 2010 ad that to the bet of or owledge ad belief:

i thee tatemet do ot cotai ay materially tre tatemet or omit ay material fact or cotai tatemet that might be mileadig.

ii thee tatemet together preet a tre ad fair view of the Compay’ affair ad are i compliace with eitig accotigtadard, applicable law ad reglatio.

b There are, to the bet of or owledge ad belief, o traactio etered ito by the Compay drig the year which are fradlet,illegal ad violative of the Compay’ code of codct.

c We accept repoibility for etablihig ad maitaiig iteral cotrol ad that we have evalated the effectivee of the iteralcotrol ytem of the Compay ad we have dicloed to the Aditor ad the Adit committee, deficiecie i the deig or operatioof iteral cotrol, if ay, of which we are aware ad the tep we have tae or propoe to tae to rectify thee deficiecie.

d We have idicated to the Aditor ad the Adit Committee:

i igificat chage i iteral cotrol drig the fiacial year eded March 31, 2010.

ii igificat chage i accotig policie drig the fiacial year eded March 31, 2010.

iii itace of igificat frad of which we have become aware.

For Tilaagar Idtrie Ltd. For Tilaagar Idtrie Ltd.

sd/ sd/ Amit Dahanukar Lalit Sethi

Chairma ad Maagig Director Chief Fiacial Officer

Place : MmbaiDated : Agt 7, 2010



66


Auditors’ certifcate on compliance with the conditions o corporategovernance under clause 49 o the listing agreement.

To the Member of Tilaagar Idtrie Ltd.

We have eamied the compliace of coditio of Corporate Goverace by Tilaagar Idtrie Ltd. ‘The Compay’ for the fiacial year eded March 31, 2010, a tiplated i Clae 49 of the Litig Agreemet of the aid Compay with the stoc Echage i Idia.

The Compliace of coditio of Corporate Goverace i the repoibility of the Maagemet. Or eamiatio wa carried ot iaccordace with the Gidace note o Certificatio of Corporate Goverace a tiplated i Clae 49 of the Litig Agreemet,ied by the Ititte of Chartered Accotat of Idia ad wa limited to procedre ad implemetatio thereof, adopted by theCompay for erig the compliace of the coditio of the Corporate Goverace. It i either a adit or a epreio of opiioof the fiacial tatemet of the Compay.

I or opiio ad to the bet of or iformatio ad accordig to the eplaatio give to ad the repreetatio made by theDirector ad the Maagemet, we certify that the Compay ha complied with the coditio of Corporate Goverace a tiplated iClae 49 of the aforemetioed Litig Agreemet.

We frther tate that ch compliace i either a arace a to the ftre viability of the Compay or the efficiecy or effectivee with which the maagemet ha codcted the affair of the Compay.

For Tilaagar Idtrie Ltd. Fr Blb & prhChartered Accotat

Firm Regitratio no. 101048W

sd/K.A. Mehta

Place : Mmbai Partner

Dated : Agt 7, 2010 Memberhip no. 111749





67


Details o the director seeking re-appointment in the orthcoming

Annual General Meeting

Prat to Clae 49 of the Litig Agreemet

n f h drr Dr. Vih kahere Mr. V. B. Haribhati

d f Brh April 14, 1958 October 8, 1929

exr ffl r

Dr. Vih kahere i a practicig Chartered Accotat ad a qalified Cot Accotat. He ia Certified Frad Eamier [Aociatio of CertifiedFrad Eamier [u.s.A], a Certified Iformatiosytem Aditor [Iformatio sytem Adit adCotrol Aociatio, u.s.A] ad IsO 9000:2000qality ytem aditor. Hi vario qalificatiogive him the fiacial, commercial ad iformatiotechology bacgrod for providig valable iptto the Compay.

He i a Chartered Accotat i practice for thepat everal year. A gold medalit i the fialChartered Accotat Eamiatio, he wa thePreidet of Ititte of Chartered Accotatof Idia i the year 196768. He wa alo Memberof the Cocil of the Ititte of Chartered Accotat of Idia drig the year 196173, with coiderable eperiece i the field of accotacy ad maagemet.

Qlf Chartered Accotat ad Cot Accotat Chartered Accotatpbl c hhdrrh hl mrh 31, 2010.

Pritih nady Commicatio Ltd.

PnC Prodctio Lt.d.

Baa Electrical Ltd.

Citadel Realty Ad Developer Ltd.

simple Realty Ltd.

Aglo – Frech Drg Idtrie Ltd.

Eter Idtrie Ltd.

Lahmi Atomatic Loom Wor Ltd.

Hidta Compoite Ltd.

chr f cfr b Br f hr

L c hhh drr mrh31, 2010.

Pritih nady Commicatio Ltd. Baa Electrical Ltd.

simple Realty Ltd.

Eter Idtrie Ltd.

Hidta Compoite Ltd.

mbr f cfr b Br f hrL c hhh drr mrh31, 2010

nil Baa Electrical Ltd.

Citadel Realty Ad Developer Ltd.

Lahmi Atomatic Loom Wor Ltd.

Hidta Compoite Ltd.

shrhl h c (eq

nIL 3000



68

ilakagar Idstris Ltd.

Fiaial Statts

ilakagar Idstris Ltd. Stadalo

69 Auditors’ report

70 Annexure to the Auditors’ report

72 BAlAnce sheet

73 profit And loss Account

74 schedules

82 notes

94 cAsh flow stAtement

95 BAlAnce sheet ABstrAct

FInAncIAL SAemenS Aditors’ port

Company Overview Strategic Review Board & Management Report



69

Aal port 200910

t t mb o takaga i l.

1. We ae adited te attaced Balance Seet of TilaknagarIndustries Ltd. ‘te Company’ as at 31st Marc, 2010,and also te Profit and Loss Accont and te Cas Flow Statement of te Company for te year ended on tatdate anneed tereto. Tese financial statements arete responsibility of te Company’s management. Orresponsibility is to epress an opinion on tese financialstatements based on or adit.

2. We condcted or adit in accordance wit te aditingstandards generally accepted in India. Tose Standards

reqire tat we plan and perform te adit to obtainreasonable assrance abot weter te financialstatements are free of material misstatements. An aditincldes eamining, on a test basis, eidence spportingte amonts and disclosres in te financial statements. Anadit also incldes assessing te acconting principles sedand significant estimates made by management, as well asealating te oerall financial statement presentation. We beliee tat or adit proides a reasonable basis for oropinion.

3. As reqired by te Companies Aditors’ Report Order,2003 as amended issed by te Central Goernmentof India in terms of sb-section 4A of Section 227 of

te Companies Act, 1956, we enclose in te Annere astatement on te matters specified in paragraps 4 and 5 of te said Order.

4. Frter to or comments in te Annere referred toaboe, we report tat :

i We ae obtained all te information and eplanations, wic to te best of or knowledge and belief werenecessary for te prposes of or adit;

ii In or opinion, proper books of accont as reqired by law ae been kept by te Company so far as appearsfrom or eamination of tose books;

iii Te Balance Seet, Profit and Loss Accont andCas Flow Statement dealt wit by tis report are inagreement wit te books of accont;

i In or opinion, te Balance Seet, Profit and Loss Accont and Cas Flow Statement dealt wit by tis report comply wit te Acconting Standardsreferred to in sb-section 3C of Section 211 of teCompanies Act, 1956;

On te basis of written representations receied fromte directors as on 31st Marc, 2010, and taken onrecord by te Board of Directors, we report tat noneof te directors is disqalified as on 31st Marc, 2010,from being appointed as a director in terms of claseg of sb-section l of Section 274 of te Companies Act, 1956;

i In or opinion and to te best of or information andaccording to te eplanations gien to s, te saidacconts read togeter wit notes tereon, gie teinformation reqired by te Companies Act, 1956, inte manner so reqired and gie a tre and fair iew inconformity wit te Acconting Principles generally accepted in India;

a in te case of te Balance Seet, of te state of affairs of te Company as at 31st Marc, 2010;

b in te case of te Profit and Loss Accont, of te

profit for te year ended on tat date and;

c in te case of te Cas Flow Statement, of tecas flows for te year ended on tat date.

f Batliboi & PurohitCartered Accontants

Firm Registration No. 101048W

Kaa maPlace : Mmbai PartnerDated : Agst 07, 2010 Membersip No.111749

Aditors’ port



70


Annexure to the Auditors’ reportReferred to in paragrap [3] of or report of een date

i a Te Company as maintained proper recordssowing fll particlars, inclding qantitatie details

and sitation of fied assets.b All fied assets ae been pysically erified by te

management dring te year. As informed, no materialdiscrepancies were noticed on sc erification.

c Tere was no sbstantial disposal of fied assetsdring te year.

ii a As per te information frnised, te inentoriesae been pysically erified by te managementdring te year. In or opinion, aing regard to tenatre and location of stocks, te pysical erificationis reasonable.

b In or opinion and according to te informationand eplanations gien to s, procedres of pysical erification of inentory followed by te managementare reasonable and adeqate in relation to te size of te Company and te natre of its bsiness.

c Te Company is maintaining proper records of inentory. In or opinion, discrepancies noticed onpysical erification of stocks were not material inrelation to te operations of te Company and tesame ae been properly dealt wit in te books of accont.

iii a As per te information frnised, te Company asgranted loans and adances, to its two wolly owned

sbsidiaries, coered in te register maintainednder Section 301 of te Companies Act, 1956.Te maimm amont inoled dring te year was` 34.51 crores and te year-end balance of loansgranted to sc parties was ` 34.51 crores.

b In or opinion and according to te information andeplanations gien to s, te terms and conditionsfor sc loans are not prima facie prejdicial to teinterest of te Company.

c Te loans granted are repayable on demand. Asinformed, te Company as not demanded repaymentof any sc loan dring te year, ts, tere as beenno defalt on te part of te parties to wom te

money as been lent. Te loan gien is interest free.

d Tere is no oerde amont of loans granted tocompanies, firms or oter parties listed in te registermaintained nder Section 301 of te Companies Act,1956.

e Te Company as taken loan from two partiescoered in te register maintained nder Section 301of te Companies Act, 1956. Te maimm amontinoled dring te year was ` 15 crores and te year-end balance of loans taken from sc parties was ` 15crores.

f In or opinion and according to te information and

eplanations gien to s, te terms and conditionsfor sc loans are not prima facie prejdicial to teinterest of te Company.

g Te loans taken are repayable on demand. Asinformed, te lenders ae not demanded repaymentof any sc loan dring te year. Te loan taken isinterest free.

i In or opinion and according to te information andeplanations gien to s, tere is an adeqate internalcontrol system commensrate wit te size of teCompany and te natre of its bsiness wit regard toprcase of inentory and fied assets and for te sale of goods. Dring te corse of or adit, no major weaknessas been noticed in te internal control system in respect of tese areas.

a Based on te adit procedres applied by s andaccording to te information and eplanationsproided by te management, we are of te opiniontat te particlars of contracts or arrangementsreferred to in Section 301 of te Act tat need to be

entered into te register maintained nder Section301 ae been so entered.

b In or opinion and according to te informationand eplanations gien to s, te transactions madein prsance of sc contracts or arrangementseceeding ale of ` fie lacs ae been entered intodring te financial year at prices wic are reasonableaing regard to te preailing market prices at tereleant time.

i In respect of deposits accepted, in or opinion and accordingto te information and eplanations gien to s, directiesissed by te Resere Bank of India and te proisions of

Sections 58A, 58AA or any oter releant proisions of teCompanies Act, 1956 and te rles framed tere nder,to te etent applicable, ae been complied wit. Weare informed by te management tat no order as beenpassed by te Company Law Board, National Company Law Tribnal or Resere Bank of India or any Cort or any oter Tribnal in tis regards.

ii In or opinion, te Company as an internal adit systemcommensrate wit te size and natre of its bsiness.

iii We ae broadly reiewed te books of accont maintained by te Company prsant to te rles made by te CentralGoernment for te maintenance of cost records nder

Section 2091d of te Companies Act, 1956, and are of te opinion tat prima facie, te prescribed acconts andrecords ae been made and maintained.

i a According to te information and eplanationsgien to s and based on te books as prodced andeamined, te Company is reglar in depositing witappropriate atorities ndispted stattory desinclding proident fnd, inestor edcation andprotection fnd, employees state insrance, incometa, sales ta, wealt ta, serice ta, cstom dty,ecise dty, cess and oter material stattory desapplicable to it, ecept for sligt delays in few cases indeposit of ta dedcted at sorce.

FInAncIAL SAemenS Ar to th Aditors’ port




71

Aal port 200910

b According to te information and eplanations gien to s, no ndispted amonts payable in respect of proident fnd,inestor edcation and protection fnd, employees state insrance, income ta, wealt ta , serice ta, sales ta, cstoms dty and ecise dty, cess and oter ndispted stattory des were otstanding at te year end, for a period of more tan si montsfrom te date tey became payable.

c According to te information and eplanation gien to s and based on te books prodced and eamined, te des of Incometa, Wealt ta, Serice ta , Sales ta, Ecise dty and cess wic ae not been deposited on accont of any dispte are as follows

na a na A` ak

f d g

Income Ta Act

A.Y. 2007-2008 Income Ta 860.70 Commissioner of Income ta Appeals

A.Y. 2004-2005 Income Ta 222.68 Commissioner of Income ta Appeals

Central Ecise Serice Ta 20.18 Central Ecise Serice Ta Appellate Tribnal

Te Company as no accmlated losses at te end of tefinancial year and it as not incrred any cas losses in tecrrent and immediately preceding financial year.

i Based on or adit procedres and te information andeplanations gien by te management, we are of teopinion tat te Company as not defalted in repaymentof des to any financial instittion or bank. Te Company as not issed any Debentres.

ii Based on or eamination of te records and teinformation and eplanations gien to s, te Company as not granted any loans and/or adances on te basis of

secrity by way of pledge of sares, debentres and otersecrities.

iii In or opinion, te Company is not a cit fnd or a nidi /mtal benefit fnd / society. Terefore, te proisions of clase 4 iii of te Companies Aditors’ Report Order,2003 as amended are not applicable to te Company.

i In or opinion, te Company is not dealing or tradingin sares, secrities, debentres and oter inestments. Accordingly te proisions of clase 4 i of teCompanies Aditors’ Report Order, 2003 as amendedare not applicable to te Company.

According to te information and eplanations gien to s,te Company as gien garantee for loans taken by tesbsidiary Company from bank, te terms and conditions wereof in or opinion are not prima-facie prejdicial tote interest of te Company.

i Based on information and eplanations gien to s by temanagement, term loans were applied for te prpose for wic te loans were obtained.

ii According to te information and eplanations gien tos and on an oerall eamination of te Balance Seet andCas Flow Statement of te Company, we report tat nofnds raised on sort term basis ae been sed for longterm inestment.

iii Te Company as made preferential allotment of conertible warrants / sares to parties coered in teregister maintained nder Section 301 of te Companies Act, 1956. In or opinion te price at wic saresae been issed is not prejdicial to te interest of teCompany.

i Te Company did not ae any otstanding debentresdring te year.

Te Company as not raised any money by way of pblicisses dring te year.

i Based pon te adit procedres performed for teprpose of reporting te tre and fair iew of te financialstatements and as per te information and eplanationsgien by te management, we report tat no frad of material significance on or by te Company as beennoticed or reported dring te corse of or adit.

f Bab & pCartered AccontantsFirm Registration No. 101048W

Kaa maPlace : Mmbai PartnerDated : Agst 07, 2010 Membersip No.111749



72


Bala Sht as at 31st marh, 2010

As per or Report of een date anneed. For and on bealf of te Board

f Bab & p A daaka sva A daaka V.B.habakCartered Accontants Cairman & Managing Director Eectie Director DirectorFirm Registration No. 101048W

Kaa ma d. V Ka c.V.Bja maa GaPartner Director Director DirectorMembersip No. 111749

Place : Mmbai Gaav takDated : Agst 07, 2010 Company Secretary

Amont in `

s A a

31 ma, 2010 A a

31 ma, 2009

I sources of funds

1. ShAREhOLDERS’ FuNDSa. Sare Capital ‘A’ 323,100,000 139,494,288 b. Sare Warrant ‘A’1 - 70,650,000c. Employee Stock Option Otstanding 2,830,067 -d. Reseres & Srpls ‘B’ 1,741,781,407 1,273,683,985

2,067,711,474 1,483,828,2732. LOAN FuNDS

a. Secred Loans ‘C’ 2,648,750,270 1,167,683,965 b. unsecred Loans ‘D’ 1,813,531,082 83,633,054

3. DEFERRED TAx LIABILITY 113,241,141 57,361,970

6,643,233,967 2,792,507,262

II ApplicAtion of funds

1. GOODWILL 3,836,695 3,836,695

2. FIxED ASSETS ‘E’a. Gross Block 2,228,244,974 1,426,029,407 b. Less: Depreciation 258,993,767 162,929,138c. Net Block 1,969,251,207 1,263,100,269

Add : Capital Work-In-Progress 1,495,281,189 390,951,9543,464,532,396 1,654,052,223

d. Lss: Ipairt o assts 1,704,564 1,704,5643,462,827,832 1,652,347,659

3. INvESTMENTS ‘F’ 65,345,179 62,844,179

4. CuRRENT ASSETS, LOANS & ADvANCES ‘G’ 4,141,238,573 2,012,499,798LESS: CuRRENT LIABILITIES & PROvISIONS ‘H’ 1,030,014,312 939,021,069

NET CuRRENT ASSETS 3,111,224,261 1,073,478,729

6,643,233,967 2,792,507,262

Sigiiat aotig poliis & nots o aots ‘L’

FInAncIAL SAemenS Bala Sht ad Proft ad Loss Aot




73

Aal port 200910

Amont in `

sf a

31 ma, 2010f a

31 ma, 2009

I income

Sales Refer Annere to Scedle L ‘I’1 4,862,128,252 3,917,344,724Less: Ecise dty 1,344,838,453 1,495,977,427

3,517,289,799 2,421,367,297

Oter Income ‘I’2 43,529,247 27,991,638

3,560,819,046 2,449,358,935

II expenditure

Increase / Decrease in stock ‘I’3 98,698,341 148,129,025Cost of material ‘I’4 1,512,443,406 1,073,181,413Employees’ remneration and benefits ‘J’ 195,631,155 197,687,367Manfactring and oter epenses ‘K’ 1,154,851,513 861,612,365Finance cost 229,576,193 107,097,969Depreciation / Amortisation 67,410,489 28,890,324

3,061,214,415 2,120,340,413

Profit before taation 499,604,631 329,018,522Less: Proision for taation

Crrent years’ 112,500,000 87,500,000

Preios years’ - 3,944,203Fringe Benefit Ta - 1,750,000Deferred Ta 55,879,171 23,340,000

168,379,171 116,534,203

Profit after taation 331,225,460 212,484,319

Add: Balance brogt forward from preios years 387,776,944 213,695,905 Amont aailable for appropriations 719,002,404 426,180,224

III AppropriAtions

Transferred to General Resere 33,500,000 21,500,000Proposed diidend 88,659,473 14,447,865

Diidend distribtion ta inclding srcarge & cess 15,072,110 2,455,415Balance transferred to Balance Seet 581,770,821 387,776,944719,002,404 426,180,224

Earnings Per Sare ` Basic 16.33 12.36Dilted 15.96 11.76

Refer Note i of Scedle ‘L’Significant acconting policies & Notes on acconts ‘L’

Proft ad Loss Aot or th ar dd 31st marh, 2010







74


Shdls Forig Part o Aotsor th ar dd 31st marh, 2010

Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘A’

ShARE CAPITAL

A50,000,000 eqity sares of ` 10/- eac 500,000,000 300,000,000P.Y. 30,000,000 eqity sares of ` 10/- eac900,000 Complsorily Conertible Cmlatie Preference Sares CCPS of ` 94/- eac 84,600,000 84,600,000

P.Y. 900,000 CCPS of ` 94/- eac

i, sbb a pa u32,310,000 eqity sares of ` 10/- eac flly paid p P.Y. 5,725,068 eqity sares of ` 10/- eac

323,100,000 57,250,680

Of te aboe sares :-a 21,842,675 eqity sares of `10/- eac flly paid-p bons sares by capitalisation

of reseres.

b 1,237,500 eqity sares of `10/- eac were allotted as flly paid-p prsant to asceme of amalgamation.

c 44,696 eqity sares of `10/- eac were allotted for consideration oter tan cas.

Nil P.Y. 874,93212% Complsorily Conertible Cmlatie - 82,243,608Preference Sares CCPS of ` 94/- eac flly paid p

323,100,000 139,494,288

schedule ‘A’(1)

ShARE WARRANT

Nil P.Y. 4,500,000 of ` 157/- eac -10% paid p - 70,650,000

- 70,650,000

schedule ‘B’

RESERvES & SuRPLuS

1. sa p A As per last Balance Seet 20,957,443 20,957,443 Add : Additions dring te year 415,434,288 -Less : utilised for isse of bons sares 215,400,000 -

220,991,731 20,957,443

2. Ga rv As per last Balance Seet 72,160,572 50,660,572Transfer from Profit & Loss Accont 33,500,000 21,500,000

105,660,572 72,160,572

FInAncIAL SAemenS Shdls




75

Aal port 200910

Shdls Forig Part o Aotsor th ar dd 31st marh, 2010 (otd.)

Amont in ̀

A a31 ma, 2010

A a31 ma, 2009

schedule ‘B’ (contd)

3. caa rv 70,650,000 -

4. rvaa rv 792,789,026 822,869,769Less : Amortised 30,080,743 30,080,743

762,708,283 792,789,026

5. p & l A 581,770,821 387,776,944

1,741,781,407 1,273,683,985

schedule ‘c’

SECuRED LOANS

1. lg t lat laFrom Banks 1,466,256,314 413,200,000Against first carge on te fied assets of te Company sitated at Srirampr, Dist. Amednagar and second carge on crrent assets.

2. s t laca c g kg aa a a 1,165,844,947 748,160,609

Against ypotecation of stock of raw material, work-in-process, finised goods,stores, cemicals & book debts and second carge on te fied assets of te Company sitated at Srirampr, Dist. Amednagar

hire prcase car loan wit Banker's lien on cars 16,649,009 6,323,356

2,648,750,270 1,167,683,965

schedule ‘d’

uNSECuRED LOANS

1. Fied deposits - Sareolders & Oters - 608,0002. unsecred Loans

From Banks 1,663,531,082 49,958,582From Promoters & Oters 150,000,000 33,066,472

1,813,531,082 83,633,054



76


s c h e d

u l e ‘ e ’

( A m o n t i n ` )

F I x E D A

S S E T S

G R O S S B L O C K

D E P R E C I A T I O N / A M O R T I S A T I O N

N E T B L O C K

A s a t

1 s t A p r i l ,

2 0 0 9

A d d i t i o n s D e

d c t i o n s R e a l a t i o n

A s a t

3 1 s t M a r c ,

2 0 1 0

A s a t

1 s t A p r i l ,

2 0 0 9

D e d c t i o n s

F o r t e

y e a r

O n

R e a l a t i o n

A s a t

3 1 s t M a r c ,

2 0 1 0

A s a t

3 1 s t M a r c ,

2 0 1 0

A s a t

3 1 s t M a r c ,

2 0 0 9

t a n g b

A

L a n d

5 2 2 , 8 9 0 , 0 0 0

-

-

-

5 2 2 , 8 9 0 , 0 0 0

-

-

-

-

-

5 2 2 , 8 9 0 , 0 0 0

5 2 2 , 8 9 0 , 0 0 0

B i l d i n g s

1 5 6 , 4 3 5 , 5 4 1

2 4 , 5 9 6 , 2 4 0

-

-

1 8 1 , 0 3 1 , 7 8 1

2 9 , 8 2 7 , 8 1 2

-

3 , 8 5 7 , 7 8 5 1

0 , 4 7 8 , 3 6 0

4 4 , 1 6 3 , 9 5 7

1 3 6 , 8 6 7 , 8 2 4

1 2 6 , 6 0 7 , 7 2 9

P l a n t & M

a c i n e r y

6 4 8 , 4 6 2 , 0 0 9

7 1 4 , 1 1 4 , 5 0 0

-

-

1 , 3 6 2 , 5 7 6 , 5 0 9

9 9 , 9 8 9 , 4 7 8

- 3

4 , 2 6 8 , 9 3 0 1

9 , 6 0 2 , 3 8 3 1 5 3 , 8 6 0 , 7 9 1

1 , 2 0 8 , 7 1 5 , 7 1 8

5 4 8 , 4 7 2 , 5 3 1

F r n i t r e

& F i t r e s

1 8 , 4 9 4 , 1 6 8

2 3 , 0 7 2 , 0 5 7

-

-

4 1 , 5 6 6 , 2 2 5

7 , 7 0 8 , 8 3 0

-

4 , 2 9 5 , 5 8 8

-

1 2 , 0 0 4 , 4 1 8

2 9 , 5 6 1 , 8 0 7

1 0 , 7 8 5 , 3 3 8

C o m p t e r s

2 8 , 9 1 4 , 4 6 3

1 8 , 9 8 0 , 9 8 2

-

-

4 7 , 8 9 5 , 4 4 5

4 , 7 7 1 , 6 2 8

- 1

5 , 3 6 3 , 9 8 7

-

2 0 , 1 3 5 , 6 1 5

2 7 , 7 5 9 , 8 3 0

2 4 , 1 4 2 , 8 3 5

E l e c t r i c a l I n s t a l l a t i o n

& F i t t i n g s

5 , 9 1 6 , 5 1 2

4 2 3 , 4 5 8

-

-

6 , 3 3 9 , 9 7 0

1 , 8 3 6 , 1 0 1

-

6 0 5 , 5 9 1

-

2 , 4 4 1 , 6 9 2

3 , 8 9 8 , 2 7 8

4 , 0 8 0 , 4 1 1

M o t o r C a r a n d

T r a n s p o r t

v e i c l e s

2 4 , 7 6 7 , 8 0 6

2 3 , 1 4 3 , 4 7 4 2

, 1 1 5 , 1 4 4

-

4 5 , 7 9 6 , 1 3 6

9 , 3 7 8 , 7 0 9

1 , 4 2 6 , 6 0 3

7 , 0 7 8 , 1 7 0

-

1 5 , 0 3 0 , 2 7 6

3 0 , 7 6 5 , 8 6 0

1 5 , 3 8 9 , 0 9 7

R o a d s & B

r i d g e s

2 , 7 0 2 , 0 3 8

-

-

-

2 , 7 0 2 , 0 3 8

6 9 1 , 7 5 8

-

2 0 1 , 0 2 8

-

8 9 2 , 7 8 6

1 , 8 0 9 , 2 5 2

2 , 0 1 0 , 2 8 0

L i b r a r y B o o k s

2 7 , 7 7 3

-

-

-

2 7 , 7 7 3

2 7 , 7 7 3

-

-

-

2 7 , 7 7 3

-

-

L i e S t o c k

2 5 , 0 0 0

-

-

-

2 5 , 0 0 0

-

-

-

-

-

2 5 , 0 0 0

2 5 , 0 0 0

i n a n g b

A

P r o d c t D

e e l o p m e n t

1 7 , 3 9 4 , 0 9 7

-

-

-

1 7 , 3 9 4 , 0 9 7

8 , 6 9 7 , 0 4 9

-

1 , 7 3 9 , 4 1 0

-

1 0 , 4 3 6 , 4 5 9

6 , 9 5 7 , 6 3 8

8 , 6 9 7 , 0 4 8

1 , 4

2 6 , 0

2 9 , 4

0 7

8 0 4 , 3

3 0 , 7

1 1

2 , 1

1 5 , 1

4 4

- 2 , 2

2 8 , 2

4 4 , 9

7 4

1 6 2 , 9 2

9 , 1

3 8

1 , 4

2 6 , 6

0 3

6 7 , 4

1 0 , 4

8 9

3 0 , 0

8 0 , 7

4 3

2

5 8 , 9

9 3 , 7

6 7

1 , 9

6 9 , 2

5 1 , 2

0 7

1 , 2

6 3 , 1

0 0 , 2

6 9

C a p i t a l W

I P

3 9 0 , 9 5 1 , 9 5 4 1 , 1 0 4 , 3 2 9 , 2 3 5

-

-

1 , 4 9 5 , 2 8 1 , 1 8 9

-

-

-

-

- 1 , 4 9 5 , 2 8 1 , 1 8 9

3 9 0 , 9 5 1 , 9 5 4

G a n t a

1 , 8

1 6 , 9

8 1 , 3

6 1

1 , 9

0 8 , 6

5 9 , 9

4 6

2 , 1

1 5 , 1

4 4

- 3 , 7

2 3 , 5

2 6 , 1

6 3

1 6 2 , 9 2

9 , 1

3 8

1 , 4

2 6 , 6

0 3

6 7 , 4

1 0 , 4

8 9

3 0 , 0

8 0 , 7

4 3

2

5 8 , 9

9 3 , 7

6 7

3 , 4

6 4 , 5

3 2 , 3

9 6

1 , 6

5 4 , 0

5 2 , 2

2 3

P r e i o s Y

e a r

1 , 3 2 5 , 7 9 6 , 0 1 0

4 9 1 , 9 3 1 , 3 3 8

7 4 5 , 9 8 7

-

1 , 8 1 6 , 9 8 1 , 3 6 1

1 0 4 , 1 2 1 , 2 8 4

1 6 3 , 2 1 3 2

8 , 8 9 0 , 3 2 4 3

0 , 0 8 0 , 7 4 3 1 6 2 , 9 2 9 , 1 3 8

1 , 6 5 4 , 0 5 2 , 2 2 3

-






78


Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘G’

CuRRENT ASSETS, LOANS & ADvANCES

c Aiv a

Raw material 218,280,621 60,254,215Stores, components 165,551,832 257,172,026 Work-in-process 199,391,291 34,941,699Stock-in-trade 135,082,356 200,833,607Stock-in-transit - 3,970,555

718,306,100 557,172,102

s db a Debtors otstanding eceeding si monts

Considered good - 84,167,548Considered dobtfl 13,327,176 -

13,327,176 84,167,548b Oter debts 674,761,905 521,849,559

688,089,081 606,017,107ca a bak baa

Cas and ceqes on and 165,945,615 13,309,076In Crrent Acconts wit Scedled Banks 13,333,878 4,285,869In Fied Deposits wit Scedled Banks 77,379,206 25,527,251

256,658,699 43,122,196la & Ava

unsecred considered good Adances recoerable in cas or in kind or for ale to be receied 691,644,108 225,477,226 Adances to Sbsidiary Companies 345,153,645 202,266,293 Adance wit tie p nits 1,196,862,981 205,918,192

Balance wit Ecise Atorities 12,802,110 12,874,620Deposit wit Cort 39,676,366 39,650,161Oter Deposits 192,045,483 120,001,901

2,478,184,693 806,188,393

4,141,238,573 2,012,499,798






79

Aal port 200910

Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘h’

CuRRENT LIABILITIES & PROvISIONS

c labs c

Micro & Small Enterprises Refer Note - -

Oters 429,691,847 482,517,081unclaimed diidend 970,639 793,918unclaimed Deposits 16,000 814,000Trade Deposits unsecred, interest free 394,656,497 277,756,297

825,334,983 761,881,296

pvProision for Taation Net of Adance Ta 52,172,116 52,439,282Proposed Diidend 88,659,473 14,447,865Diidend Distribtion Ta 15,072,110 2,455,415Proision for Gratity 2,796,594 21,049,446Proision for leae encasment 8,850,327 7,596,590Oter Proisions 37,128,709 79,151,175

204,679,329 177,139,773

1,030,014,312 939,021,069

Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

schedule ‘i’(1)

SALES

Sales of prodcts 3,780,712,720 3,634,036,632Income from tie-p nits 1,063,371,976 268,785,521Oter operating income 18,043,556 14,522,571

4,862,128,252 3,917,344,724

schedule ‘i’(2)

OThER INCOME

Dty drawback on eports 4,295,353 3,070,320Miscellaneos receipts 16,230,360 20,584,280Sndry balances written back 21,759,823 2,792,362Interest income 2,785,878 1,456,531

Gain/ Loss on ecange flctation 1,542,167 88,145

43,529,247 27,991,638




80


Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

schedule ‘i’(3)

INCREASE / DECREASE IN STOCK

og sk i Work-in-process 34,941,699 7,833,137ii Finised goods 200,833,607 79,813,144

235,775,306 87,646,281

l : cg sk i Work-in-process 199,391,291 34,941,699ii Finised goods 135,082,356 200,833,607

334,473,647 235,775,306

n ia/da sk 98,698,341 148,129,025

schedule ‘i’(4)

COST OF MATERIAL

ra maa cOpening Stock 60,254,215 30,487,298 Add: Prcases 765,627,029 536,114,050Less: Closing Stock 218,280,621 60,254,215

607,600,623 506,347,133

pakg maa & cab 904,842,783 566,834,280

1,512,443,406 1,073,181,413

SChEDuLE ‘J’

EMPLOYEES’ REMuNERATION & BENEFITS

Salary and wages 154,399,300 166,315,464Contribtion to proident fnd and family pension fnd 13,241,786 10,041,144Labor and staff welfare epenses 25,193,475 10,174,861Gratity 2,796,594 11,155,898

195,631,155 197,687,367






81

Aal port 200910

Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

SChEDuLE ‘K’

MANuFACTuRING AND OThER ExPENSES

Power and fel 21,560,063 24,094,047Proision for ecise dty on finised goods Refer Note ii 42,022,466 40,420,885Repairs & maintenance 26,035,663 28,618,875

Insrance 7,156,283 6,349,667Rent 60,116,944 127,942,136Conersion cost 329,246,758 51,685,919Legal and professional carges 34,428,831 32,391,829 Aditors Remneration 399,838 255,749Rates and taes 30,828,792 50,146,103Sales ta 35,127,162 18,184,644Freigt, transport carges & oter epenses 77,322,766 79,509,895Selling epenses [Disconts,Sales Promotion & Adertising etc.] 429,030,715 322,864,761Traelling and coneyance epenses 19,936,188 10,274,953Printing and stationery 5,438,386 3,087,896Commnication epenses 12,708,370 7,062,910 veicle rnning epenses 3,784,371 2,931,685

Loss on sale of assets 123,542 215,642Bad debts 4,863,544 -Commission to Independent Directors 4,788,122 3,286,254Director sitting fees 280,000 300,000Miscellaneos epenses 93,697,641 51,988,515

1,154,851,513 861,612,365




82


schedule ‘l” siGnificAnt AccountinG policies & notes on Accounts

1. SIGNIFICANT ACCOuNTING POLICIES

Ba paa faa sa:

Te financial statements ae been prepared sing istorical cost conention and on te basis of going concern in accordance wit generally accepted acconting principles in India, Acconting Standards notified nder Section 2113C of teCompanies Act, 1956 and oter releant proisions of te Companies Act, 1956.

u ea:

Te preparation of financial statements reqires estimates and assmptions to be made tat affect te reported amont of

assets and liabilities on te date of te financial statements and te reported amont of reenes and epenses dring tereporting period. Difference between te actal reslts and estimates are recognised in te period in wic te reslts areknown/ materialised.

rv rg:

All reene and epenses are acconted for on accral basis. Reene is recognised wen no signif icant ncertainties eist inrelation to te amont of eental receipt.

a Sales are recognised on dispatc of goods to cstomers and are inclsie of central / state ecise dty.

b Insrance and oter claims are acconted for as and wen admitted by te appropriate atorities.

v iv:

Inentories are stated at te lower of cost and net realisable ale. Cost is determined on te basis of Weigted AerageMetod.

a Raw material, Stores & Components and Work-in-Process are aled at material cost.

b Finised goods aled at manfactring cost wic comprise direct material, direct labor, oter direct cost and oterrelated manfactring oereads. Ecise dty payable on finised goods stock is added to te cost.

v f A:

a Fied assets are stated at teir original cost of acqisition /installation, net of accmlated depreciation, amortisationand impairment losses.

b Capital work-in-progress is stated at te amont incrred p to te date of te Balance Seet.

c Ependitre incrred dring constrction/erection period Inclding finance cost relating to borrowed fnds forconstrction or acqisition of fied assets on project nder implementation are inclded nder “Capital work-in-progress”. Tese epenses are appropriated to fied assets on commencement of commercial prodction.

d Fied assets prcased nder hire prcase arrangements, incldes ependitre incrred till te assets are pt to se.e Intangible assets are stated at cost of acqisition less accmlated amortisation.

v da a Aa:

a Depreciation is proided on te “Written Down vale Metod” in te manner and at te rates specified in Scedle xIv of te Companies Act, 1956:

i On all assets acqired prior to 30t September, 1968

ii On all assets acqired nder amalgamation from erstwile Tilaknagar Distilleries & Indstries Ltd. prior to1st April, 1980 and al l assets oter tan plant & macinery acqired after 1st April, 1980.

b Depreciation is proided on te “Straigt Line Metod” in te manner and at te rates specified in Scedle xIv of teCompanies Act, 1956 on all oter assets oter tan tose stated erein aboe.

c Depreciation is proided on assets acqired dring te year from te date on wic assets were pt to se.


FInAncIAL SAemenS nots




83

Aal port 200910

v ia A:

Impairment loss is recognised wereer te carrying amont of an asset is in ecess of its recoerable amont and te sameis recognised as an epense in te statement of Profit and Loss and te carrying amont of te said asset is redced to itsrecoerable amont.

Reersal of impairment losses recognised in prior years is recorded wen tere is an indication tat te impairment lossesrecognised for te asset no longer eist or ae decreased.

v iv:

a Long Term Inestments non-trade, nqoted are stated at cost. Proision for dimintion in ale is made only if in teopinion of management sc a decline is oter tan temporary.

b Crrent Inestments are sown at cost / fair ale wiceer is lower. fg c cv:

Foreign crrency transactions are recorded at te rate of ecange preailing on te date of transaction. Foreign crrency denominated monetary items as at te Balance Seet date are translated at te rate preailing on te date of Balance Seet.Ecange rate difference arising on te settlement of monetary items inclding year end translations are recognised in teProfit & Loss Accont.

pv a cg:

Proision is recognised wen tere is a present obligation as a reslt of past eent tat probably reqires an otflow of resorcesand a reliable estimate can be made of te amont of obligation. A disclosre on contingent liability is made wen tere is apossible obligation or present obligation tat probably will not reqire an ot flow of resorces or were reliable estimate of te amont of te obligation cannot be made. howeer contingent assets are neiter proided for nor disclosed.

ra a dv:Reene ependitre on researc and deelopment is carged to te profit & loss of te year in wic it is incrred.

Ependitre incrred on deelopment of new prodct / brand is amortised oer a period of 10 years taking into considerationits anticipated ftre benefits.

Bg c:

Borrowing costs attribted to te acqisition of fied assets are capitalised as a part of te cost of asset pto te date te assetis pt to se. Oter borrowing costs are carged to te Profit & Loss Accont in te year in wic tese are incrred.

e B:

a d cb pa:

Employee benefits in te form of contribtion to Proident Fnd managed by Goernment Atorities, Employees

State Insrance Corporation and Labor Welfare Fnd are considered as defined contribtion plan and te same iscarged to te Profit & Loss Accont of te year wen te contribtion to te respectie fnds are de.

b d B pa:

Retirement benefits in te form of gratity etc. are considered as defined benefit obligations and are proided at tepresent ale of te amonts payable as on tat date of te Balance Seet, determined by sing actarial alationtecniqes. Actarial gains /losses, if any, are recognised in te Profit & Loss Accont.

lav ea:

Liability on accont of te naailed earned leae as been proided at te year-end on actal basis.

v e sk ca c:

Te Company measres compensation cost relating to employee stock option sing te ‘intrinsic ale metod’. Compensationcost for stock option represent te ecess of te market price oer te eercise price of te sares granted nder “Employee

Stock Option Sceme” is amortised in accordance wit gidelines issed by Secrities and Ecange Board of India SEBI,in tis regard.




85

Aal port 200910

v t Ag saa 15 “e B” a

Defined Contribution Plan

Te Company as carged in te Profit & Loss Accont dring te f inancial year an amont of ` 13.24 million nder definedcontribtion plan as employer’s contribtion to Proident Fnd.

Defined Benefit Plan

Te Employees’ gratity fnd sceme managed by LIC is a defined benefit plan. Te present ale of obligation is determined based on actarial alation sing te Projected unit Credit Metod, wic recognises eac period of serice as giing riseto additional nit of employee benefit entitlement and measres eac nit separately to bild p te final obligation. Teobligation for leae encasment is recognised in te manner as gratity.

Te net ale of te defined commitment is detailed below

Amont in `fGa

n flav

Present vale of Commitments 10,870,914

Fair vale of Plans 8,074,320

Net Liability in te Balance Seet 2,796,594 8,850,327

d B c

Opening balance as at 1st April, 2009 21,049,446

Crrent Serice Cost 2,645,682

Interest epenses 1,895,610

Paid benefits - Actarialgain/loss 14,719,824

Transfer receied -

Closing balance as at 31st Marc, 2010 10,870,914

pa A

Opening balance as at 1st April, 2009 7,431,496

Epected retrn on sceme assets 594,520

Contribtions by te Company -

Paid Fnds -

Actarial gain/loss 48,304

Transfer Receied -

Closing balance as at 31st Marc, 2010 8,074,320r pa A

Epected retrn on plan assets 594,520

Actarial gain/loss 48,304

Aa r pa A 642,824

e b a

Crrent serice costs 2,645,682

Past serice cost -

Interest epense 1,895,610

Epected retrn on inestment 594,520

Net actarialgain/loss 14,768,128

Epenses carged to te Profit and Loss Accont (10,821,356)




86


%

iv da Inested

A a31 ma, 2010

Fnds Managed by Insrer 100

Pblic Sector unit Bonds -

State/Central Garanteed secrities -

Special deposit scemes -

Oter eclding bank balances -

100

Aaa a Ga

Mortality LIC 1994-96 ultimate

Discont rate per annm 8.25%

Epected rate of retrn on plan assets per annm 8.00%

Rate of escalation in salary per annm 5.00%

v e sk o s

a The Shareholders of the Company at the Annual General Meeting held on 6th August, 2008 approved Employee Stock Option Scheme (ESOP) 2008.

b During the year ended 31st March, 2010 the following scheme was in operation

Amont in `

paa Ga 1 Ga 2

Date of Grant 2nd Jly, 2009 28t Janary, 2010

Date of te Board Approal 2nd Jly, 2009 28t Janary, 2010

Date of te Sareolders Approal 6t Agst, 2008 6t Agst, 2008

Nmber of options granted **273,000 1,444,521

vesting period from te date of grant 4 years 4 years

Eercise period from te date of esting 2 years 2 years

** Post adjustment of Bonus in the ratio of 2:1 shares and net of cancellation and re-issue of stock option during thefinancial year.

t a a 31 ma, 2010 a a

Amont in `

paa A a

31 ma, 2010 A a

31 ma, 2009

Options otstanding at te beginning of te year Nil Nil

Options granted dring te year** 1,717,521 Nil

Options cancelled dring te year Nil Nil

Options otstanding at te end of te year** 1,717,521 Nil

** Net of cancellation and re-issue of stock option during the financial year.






87

Aal port 200910

The weighted average fair value of stock options granted during the financial year was ` 5,573,552 (Previous Year` Nil). The Black Scholes valuation model has been used for computing the weighted average fair value considering thefollowing inputs

Amont in `

paa Ga 1 Ga 2

Dates of Grant 2nd Jly, 2009 28t Janary, 2010

Market Price ` per sare on te dates of grant 143.45 99.45

volatility 71.49% 68.67%

Risk free rate 6.24% 6.76%

Eercise price 120 75Time to matrity years 5 5

Diidend yield 2% 2%

Option fair ale ` per sare 66.80 49.11

Since the Company, used the intrinsic value method, the impact on the reported net profit and earnings per share by applying the fair value method is as under

Amont in `

paa A a

31 ma, 2010 A a

31 ma, 2009

Net Profit as Reported aailable to Eqity Sare olders 322,000,627 212,326,148

Add: Employee stock compensation nder intrinsic ale 2,830,067 Nil

Less: Employee stock compensation nder fair ale metod 5,573,552 Nil Adjsted Net profit 319,257,142 212,326,148

Earnings per sare

Basic:

-As reported 16.33 12.36

-Adjsted 16.19 12.36

Dilted:


-Adjsted 15.83 11.76

v sg rg

Te Company is predominantly engaged in te bsiness of manfactre and sale of Indian Made Foreign Liqor and itsrelated prodcts wic constitte a single bsiness segment.

v ra pa d

Te disclosres pertaining to te related parties as reqired by te Acconting Standard 18 “Related Party Disclosre” issed by te Institte of Cartered Accontants of India, as applicable, are as nder

a l ra a a a

s.n.

na a a ra

1. Prag Distillery P Ltd. Sbsidiary Company

2. Srya Organic Cemicals P Ltd. Sbsidiary Company

3. Mr. Amit Daankar Key Managerial Personnel Cairman & Managing Director

4. Mrs. Siani Amit Daankar Key Managerial Personnel Eectie Director5. M.L. Daankar & Co. Pt. Ltd. Company in wic Key Managerial Personnel as sbstantial interest

6. Arnoday Inestments Pt. Ltd. Company in wic Key Managerial Personnel as sbstantial interest

7. Dr. Priyadarsini A. Daankar Relatie of Key Managerial Personnel




88


b taa g aa a a a

Amont in `

s.n

na taa

sba ca

K maaga

ca baa

i

rav K

maagap

1. Sale/Prcase 25,628,270 - - -2. Payment to Key Managerial Personnel - 47,881,221 - -3. Net Loans & Adances gien 142,887,352 - - -4. Loans taken - - 150,000,000 -5. Rent 2,454,000 720,000 685,200

6. Otstanding:Receiable 345,153,645 - - -Payable - - 150,000,000 -

t bak- a a a 31 ma, 2010 a

Amont in `

paa

d ta ab a a

31 ma, 2010

Deferred Ta liability as at 1st April, 2009 57,361,970 Add: Deferred Ta Assets /Liability dring te year on accont of difference in depreciation & Oters 55,879,171

Deferred Ta liability as on 31st Marc, 2010 113,241,141

maaga ra

a da maaga ra a v g aa a 31 ma, 2010

Amont in `

paa 2009-10 2008-09

Remneration to Managing Director and Wole Time Directors

- Salaries and Contribtion to fnds 31,753,380 26,564,246

- vale of perqisites - -

- Commission 16,127,841 6,298,292

47,881,221 32,862,538

Remneration to Non-eectie and Independent Directors

- Commission 4,788,122 3,286,254

Note: Te aboe amonts do not inclde contribtion to Gratity Fnd, as separate amont is not aailable for ManagingDirector and Wole Time Directors.






89

Aal port 200910

b Comptation of Profit /s 198 read wit Section 349 & Section 350 of te Companies Act, 1956 for te prpose of Managerial remneration for te financial year ended 31st Marc, 2010

Amont in `

paa 2009-10 2008-09

Profit as per Profit & Loss Accont 331,225,460 212,484,319

Add: Managerial Remneration 52,669,343 36,148,792

Depreciation and Amortisation 67,410,489 28,890,324

Loss on sale of assets 123,542 215,642

Proisions for Taation Inclding Deferred Ta 168,379,171 116,534,203

619,808,005 394,273,280Less: Depreciation /s 350 of te Companies Act, 1956 67,410,489 28,890,324

Profit on sale of assets - -Net Profit as per Section 198 read wit Section 349 & Section 350 of teCompanies Act, 1956.

552,397,516 365,382,956

Maimm amont of Remneration permissible to te Managing and WoleTime Directors in terms of Section 309 of te Companies Act, 1956,10% of profit as compted aboe

55,239,752 36,538,296

Maimm amont of Commission permissible to Non-eectie andIndependent Directors in terms of Section 309 of te Companies Act, 1956,1% of profit as compted aboe

5,523,975 3,653,830

A’ a ag a

Amont in `

paa 2009-10 2008-09

a Adit Fees 330,900 151,686

b Aditors remneration in oter capacity 68,938 104,063

399,838 255,749

Proision of ecise dty on finised goods manfactred bt yet to be cleared from te factory as at 31st Marc, 2010 estimatedat ` 37,128,709 Preios Year ` 79,151,175 as been proided in te books and also been considered in alation of closingstock of finised goods. Proision for ecise dty on finised goods carged in te Profit and Loss Accont for te financial year is as follows

Amont in `

paa 2009-10 2008-09

Proision for ecise dty on f inised goods at te beginning of te year 79,151,175 38,730,290

Proision for ecise dty on finised goods at te end of te year 37,128,709 79,151,175

Proision for ecise dty on finised goods carged in te Profit and Loss Accont 42,022,466 40,420,885

Tere are no amonts otstanding in respect of npaid diidend / fied deposits for more tan seen years to be transferredto Inestor Edcation & Protection Fnd.

v Te amont of secred and nsecred loans from banks otstanding at te end of te financial year ae been garanteed by te personal garantee of Cairman & Managing Director of te Company.

v Te Company as not receied te reqired information from sppliers regarding teir stats nder te Micro, Small andMedim Enterprises Deelopment Act, 2006 and ence disclosres relating to Micro, Small and Medim Enterprises ae not been made.




90


v eag p sa

Amont in `

paa 2009-10 2008-09

Profit After Ta 331,225,460 212,484,319Less : Diidend on Preference Sares & Ta tereon 9,224,833 158,171Profit after Ta and after Preference Diidend 322,000,627 212,326,148 Weigted aerage nmber of sares 19,717,994 17,175,204Basic Earnings Per Sare 16.33 12.36 Weigted aerage nmber of sares adjsted for te effects of diltie potentialeqity sares

20,171,511 18,050,136

Dilted Earnings Per Sare 15.96 11.76Face vale per Eqity Sare 10 10

v o sga

a Te Company’s glass manfactring nit was gien to Ramnat Glass Containers Pt. Ltd RGCPL managed by MetaBroters on lease for carrying ot teir bsiness, wic ad discontined te operations in te year 2003 and andedoer te nit back to te Company in totally nworkable conditions witot flfilling teir legal obligations nder teagreement. De to tis te Company ad to pay te stattory liabilities and settle te des of te workmen on bealf of RGCPL / Meta Broters. Te Company as initiated te legal action against te RGCPL / Meta Broters for recoery of amont paid togeter wit interest and damages amonting to ` 76.2 million.

b Te Company’s distribtor Ding Dong Liqors as filed a winding p petition on te Company in te hig Cort of Jdicatre of Bombay for recoery of Secrity Deposit of ` 25 million. Te Company witeld te Secrity Deposit onte gronds tat Ding Dong Liqors ad failed to delier te ‘C’ forms and oter amonts de to te Company. Te

hon’ble hig Cort ide its Order directed te Company to deposit a sm of ` 12.70 million ot of te total amontclaimed by Ding Dong Liqors. Te Company as deposited te aboe sm wit te Cort and f iled an appeal againstte said Order.

Frter, te Company as filed a separate sit for recoery of des of ` 39 million and ‘C’ forms against Ding DongLiqors.

Anpama Wine Distribtors as filed a sit before te City Ciil Cort, Bangalore claiming ` 73.11 million towardsrefnd of secrity deposit and oter des. Te hon’ble Cort ide its Order dated 22nd December, 2007 dismissedteir application for attacment of property for recoery of te aboe des. Te Company as filed a conter claim for` 119.30 million against Anpama Wine Distribtors and te matter is pending before City Ciil Cort, Bangalore.

Anpama Wine Distribtor as fi led a Company petition against te Company before Bombay hig Cort and againsttat te hon’ble Bombay hig Cort as ide Order dated 16t Marc, 2009 directed to te Company to Deposit a smof ` 42.10 million. Te Company as deposited a bank garantee wort te said amont wit te hig Cort, Mmbaiand as filed an appeal against te said Order.

v Additional information prsant to te proisions of paragrap 3, 4 c & d of part II of Scedle vI of Companies Act,1956, is anneed ereto

Figres of preios year ae been regroped, reclassified and recast, wereer considered necessary.










91

Aal port 200910

Amont in `

2009-10 2008-2009

uom Qa r Qa r Annexure to schedule ‘l’

1. SALES & SERvICESp

sa

a Indian Made Foreign Liqor - own nit B.L. 5,710,320 693,408,340 5,194,386 838,526,655b Indstrial Alcool & Oter Spirits B.L. 3,397,800 145,366,070 1,911,432 43,438,748c Dietyl Oalate/ Cemicals Kgs 607,900 45,422,600 437,585 31,868,850d Indian Made Foreign Liqor - Lease nits B.L. 26,230,851 2,896,515,710 22,303,359 2,720,202,379

3,780,712,720 3,634,036,632

i - 1,063,371,976 268,785,521 o i 18,043,556 14,522,571

4,862,128,252 3,917,344,724

vTe Company as entered into arrangements wit certain distilleries and bottling nits in oter States for manfactring andmarketing of its own brands. Te manfactre nder te said arrangement, werein eac party’s obligations are stiplated, iscarried ot nder Company’s close sperision. Te marketing is entirely te responsbility of te Company. Te Company isalso reqired to ensre adeqate finance to te distilleries, were reqired. Accordingly, it is considered appropriate to disclosete following qantitatie and ale information for te year, as applicable to sc actiities.

Qantitatie information and Income from operations trog oter distilleries / bottling nits reflects te gross contribtionmade by tese nits and is detailed as nder:

2009-10 2008-2009

uom Qa r Qa rGross Sales B.L. 34,659,513 5,566,393,653 6,901,920 1,115,179,328Net Sales 2,470,324,713 561,241,577

t a s ‘i 1 a a

2009-10 2008-09

Gross Sales of Companys’ brands and oter sales inclding salesmade by tie-p arrangement 9,365,149,929 4,763,738,531Less : Ecise Dty 4,440,907,393 2,049,915,178Net Sales of Companys’ brands and oter sales 4,924,242,536 2,713,823,353Less : Net Sales made by tie p nits 2,470,324,713 561,241,577 Add : Net income from tie p arrangement 1,063,371,976 268,785,521ta i 3,517,289,799 2,421,367,297




92


Amont in `

2009-10 2008-2009

uom Qa r Qa r ANNExuRE TO SChEDuLE ‘L’ (contd)

2. STOCK OF FINIShED GOODS

og sk pa Indian Made Foreign Liqor - own nit B.L. 413,001 35,366,272 320,984 21,439,701

b Indstrial Alcool & Oter Spirits B.L. 749,605 50,424,146 827,844 15,344,940c Dietyl Oalate/ Cemicals Kgs 9,300 771,800 10,895 501,529d Indian Made Foreign Liqor - Lease nits B.L. 633,780 114,271,389 242,414 42,526,974

200,833,607 79,813,144

cg sk pa Indian Made Foreign Liqor - own nit B.L. 312,768 23,807,548 413,001 35,366,272b Indstrial Alcool & Oter Spirits B.L. 417,565 15,032,340 749,605 50,424,146c Dietyl Oalate/ Cemicals Kgs 47,000 3,188,017 9,300 771,800d Indian Made Foreign Liqor - Lease nits B.L. 608,283 93,054,451 633,780 114,271,389

135,082,356 200,833,607

3. PARTICuLARS OF GOODS MANuFACTuRED uom lcaa a

iacaa a

Qa 2009-10 Qa 2008-09

pa Indian Made Foreign Liqor - own nit B.L. 9,000,000 9,000,000 5,610,087 5,286,403b Indstrial Alcool & Oter Spirits B.L. 24,250,000 24,250,000 11,966,165 12,175,967c Dietyl Oalate/ Cemicals Kgs 2,400,000 2,400,000 645,600 435,990d Indian Made Foreign Liqor - Lease nits B.L. 35,741,250 35,741,250 26,205,354 22,694,725

2009-10 2008-09

uom Qa r Qa r4. RAW MATERIAL CONSuMED

a Molasses M.T. 46,291 273,219,527 44,728 263,773,879b Indstrial Alcool & Oter Spirits B.L. 15,520,940 309,170,308 10,342,774 224,447,188c Oalic Acid/ Cemicals Kgs 733,000 25,210,788 534,850 18,126,066

607,600,623 506,347,133






93

Aal port 200910

2009-10 2008-09

` % ` %5. vALuE OF IMPORTED & INDIGENOuS RAW

MATERIAL & COMPONENTS CONSuMED

i Imported - - - -ii Indigenos 607,600,623 100 506,347,133 100

607,600,623 506,347,133

6. CIF vALuE OF IMPORTS - -

7. EARNINGS IN FOREIGN ExChANGE 52,510,880 81,460,676

8. ExPORT ThROuGh ThIRD PARTIES - -

9. ExPENDITuRE IN FOREIGN ExChANGE 9,589,785 2,666,708




94


Amont in `

2009-10 2008-09

A cAsh flow from operAtinG ActiVities

Net profit before ta & etraordinary items 499,604,631 329,018,522Adjstment forDepreciation 67,410,489 28,890,324Srpls / Loss on sale of assets 123,542 215,642Interest net 226,790,315 105,641,438Diidend receied - 11

294,324,346 134,747,393Operating Profit before working capital cangesAdjstment forIncrease / Decrease in inentory 161,133,998 344,942,689Increase / Decrease in trade receiables 82,071,974 55,522,283Increase / Decrease in loans and adances 1,671,996,300 453,407,864Decrease / Increase in trade payable and proisions 90,993,243 394,721,712

1,824,209,029 459,151,124

Proceeds from sort term borrowings 1,281,253,557 -

Ta proision 112,500,000 93,194,203

NET CASh FROM OPERATING ACTIvITIES 138,473,505 (88,579,412)

B cAsh flow from inVestinG ActiVities

Prcase of fied assets 1,908,659,947 491,931,340Sale of fied assets 565,000 367,134Increase in inestments 2,501,000 31,447,293Diidend receied - 11Interest receied 2,785,878 1,456,531

NET CASh FROM INvESTING ACTIvITIES (1,907,810,069) (521,554,957)

C cAsh flow from finAncinG ActiVities

Proceeds from isse of sare capital inclding premim 386,470,067 82,243,608Proceeds from borrowings net 1,929,710,776 674,514,407Interest paid 229,576,193 107,097,969Diidend and ta tereon 103,731,583 16,903,280

NET CASh FROM FINANCING ACTIvITIES 1,982,873,067 632,756,766

NET INCREASE IN CASh & CASh EQuIvALENTS 213,536,503 22,622,397Opening cas & cas eqialents 43,122,196 20,499,799Closing cas & cas eqialents 256,658,699 43,122,196

cash Flow Stattor th ar dd 31st marh, 2010









95

Aal port 200910

Bala Sht Abstratcopa’s Gral Bsiss Profl

I reGistrAtion detAils

Registration No. 1 3 3 3 0 3 State Code 1 1

Balance Seet Date 3 1 0 3 2 0 1 0

II cApitAl rAised durinG the yeAr (Amount in ` thousAnds)

Pblic Isse N I L Rigt Isse N I L

Bons Isse 2 1 5 4 0 0 Priate Placement 3 8 3 6 4 0Eqity Sares

III position of moBilisAtion And deployment of funds (Amount in`thousAnds)

Total Liabilities 7 6 7 3 2 4 8 Total Assets 7 6 7 3 2 4 8

SOuRCES OF FuNDS

Paid-p Capital 3 2 3 1 0 0 Reseres and Srpls 1 7 4 1 7 8 1

Employee Stock Option 2 8 3 0Otstanding

Secred Loans 2 6 4 8 7 5 0 unsecred Loans 1 8 1 3 5 3 1

Deferred Ta Liabiltiy 1 1 3 2 4 1 Crrent Liabilities 1 0 3 0 0 1 5

APPLICATION OF FuNDS

Net Fied Assets 3 4 6 6 6 6 5 Inestment 6 5 3 4 5

Crrent Assets 4 1 4 1 2 3 8 Miscellaneos Ependitre N I L

Accmlated Losses N I L

Iv performAnce of compAny (Amount in`thousAnds) * (includes other income)

Trnoer* 4 9 0 5 6 5 7 Total Ependitre 4 4 0 6 0 5 2

+ - + -Profit/Loss Before Ta P 4 9 9 6 0 5 Profit/Loss After Ta P 3 3 1 2 2 5

+ -Earning per sare In ` P 1 6 . 3 3 Diidend Rate % 2 5

Basic

+ -Earning per sare In ` P 1 5 . 9 6

Dilted

v Generic nAmes of two principAl products / serVices of the compAny (As per

monetAry terms)Item Code No ITC Code 2 2 0 7 1 0 . 0 1

Prodct Description R E C T I F I E D S P I R I T

Item Code No. ITC Code 2 2 0 8 3 0 . 0 0

Prodct Description I M F L W h I S K I E S







Prag Distillr (P) Ltd.

96

Fiaial Statts


97 directors’ report



102 BAlAnce sheet


104 schedules

109 notes



FInAncIAL SAemenS Dirtors’ port




Aal port 200910

97

Dirtors’ port

Prag Distillery (P) Ltd.

Registered Office: P. O. Tilaknagar, Tal. Srirampr, Dist. Amednagar, Maarastra - 413 720.

da mb,

Yor Directors ae te pleasre in presenting te 5t AnnalReport of te Company togeter wit Adited Statementof Acconts of yor Company for te financial year ended31st Marc, 2010.

finAnciAl results

Yor Company as acieed net sales of ` 361,275,506/- ascompared to ` 70,724,160/- in 2008-09 acieing impressiegrowt of 411% in te trnoer and posted Net Profit of ` 39,994,287/- as compared to Net Loss of ` 2,402,969/- in2008-09.

opeRtionAl reView

In iew of te penomenal increase in prodction and grosssales and in iew of te fact tat yor Company’s prodcts ae been ery well accepted in te market, yor Company plansto increase capacity by te financial year 2011-12. AndraPrades being a key and growing market for yor Company it isimperatie for yor Company to go aead wit tis epansion to better rationalise its manfactring infrastrctre.

DIVIDEND

Tis being te first year of trnarond, yor Directors do notrecommend any diidend on eqity sares for te financial yearended 31st Marc, 2010 and intend to deploy te profits in teoperations of te Company.

directors

Dr. Kesab Nandy, Director of te Company retires by rotationat te ensing Annal General Meeting and being eligible, offersimself for re-appointment.

holdinG compAny

Yor Company is a wolly owned sbsidiary of TilaknagarIndstries Ltd.

directors’ responsiBility stAtement As stiplated in Section 2172AA of te Companies Act, 1956,on te basis of te information frnised to tem by te stattory aditors and management, yor Directors state tat:

a in preparation of te annal acconts, te applicableacconting standards ae been followed and tere are nomaterial departres.

b tey ae selected sc acconting policies and appliedtem consistently and made jdgements and estimates tatare reasonable and prdent so as to gie a tre and fair iew of te state of affairs of te Company at te end of te year

and of te profit of te Company for te year.

c tey ae taken proper and sfficient care for temaintenance of adeqate acconting records in accordance wit te proisions of te Companies Act, 1956, forsafegarding te assets of te Company and preenting anddetecting frad and oter irreglarities.

d tey ae prepared annal acconts on a going concern basis.

pArticulArs of employees under section217(2A) of the compAnies Act, 1956

Te Company did not ae any employees wo were in receiptof remneration, wic in aggregate amonted to ` 2,400,000/-or more, if employed trogot te year or ` 200,000/- permont, if employed for part of te year.

conserVAtion of enerGy, technoloGy ABsorption And foreiGn exchAnGeeArninGs And outGo

Details wit respect to Conseration of Energy and Tecnology Absorption, as reqired nder Section 2171e of teCompanies Act, 1956 are frnised erender:




98

(A) CONSERvATION OF ENERGY Te Company is making continos efforts to redce energy consmption by jdicios se and preentie maintenance of te plantand by optimising te se of energy trog improed operational metods.

f – A

ta g a g :-

u ya

2009-10 ya

2008-09

A. power And fuel consumption

1. ELECTRICITY Prcased - nits ‘000 93.66 63.95Total Amont ` In Lacs 5.69 4.36Rate per nit ` 6.07 6.82

2. STEAM COALFor generation of steam Ton Nil Nil

Total amont ` In Lacs Nil Nil Aerage rate per MT `/MT Nil Nil

u 2009-10e

2008-09e

B. consumption per unit of production

NAME OF ThE PRODuCTIMFL BL 0.11 0.03

(B) TEChNOLOGY ABSORPTION/INNOvATION AND ADOPTION/RESEARCh AND DEvELOPMENT

Since bsiness and tecnologies are canging constantly and continosly, inestment in researc and deelopmentactiities is of paramont importance. Yor Company is continosly ndertaking Researc & Deelopmentactiities and taking steps for qality pgradation on acontinos basis.

(C) FOREIGN ExChANGE EARNINGS AND OuTGO

Te Company as not earned any income or incrred any epenses in foreign ecange.

fixed deposits

Te Company as not accepted any fied deposits from pblicdring te year.

Auditors

M/s. Batliboi & Proit, Stattory Aditors of te Company,sall retire at te conclsion of te ensing Annal GeneralMeeting and being eligible, ae offered temseles forreappointment.

Auditors’ report

Te Aditors’ Report to te sareolders does not contain any qalifications.

compliAnce certificAte under section 383A

Te Company as obtained Compliance Certificate as reqirednder Section 383A of te Companies Act, 1956.

AcKnowledGement

Yor Directors take tis opportnity to epress teir sinceretanks and appreciation towards all te employees of teCompany for teir commendable teamwork, woleeartedefforts and inestimable contribtion to te contined growt of te Company.

Yor Directors also tank inestors, bsiness partners, clients,tecnology proiders, endors, financial instittions & banks, dealers& sppliers, reglatory & goernment atorities and aditors forteir contined spport to te Company dring te year.

For and on bealf of te Board

Place: Mmbai Amit DahanukarDate: Jne 30, 2010 Cairman

FInAncIAL SAemenS Dirtors’ port ad Aditors’ port





100

Annexure to the Auditors’ report

Referred to in paragrap [3] of or report of een date


and sitation of fied assets.b Fied Assets ae been pysically erified by te

management dring te year and no materialdiscrepancies were noticed on sc erification.


ii a Te management as condcted pysical erificationof inentory dring te year. In or opinion, tefreqency of erification is reasonable.

b In or opinion, te procedres of pysical erificationof inentory followed by te management arereasonable and adeqate in relation to te size of teCompany and te natre of its bsiness.

c Te Company is maintaining proper records of inentory and discrepancies noticed on pysical erification of stocks were not material in relation tote operations of te Company and te same ae been properly dealt wit, in te books of acconts.

iii a Te Company as not granted any loans secred ornsecred to parties, firms or Companies coeredin te register maintained nder Section 301 of teCompanies Act, 1956.

b Te Company as taken loans from one party

coered in te register maintained nder Section 301of te Companies Act, 1956. Te maimm amontinoled dring te year was ` 24.21 crores and te year end balance of loans taken from sc parties was` 24.21 crores.

c In or opinion and according to te information andeplanations gien to s, te terms and conditions forsc loan is not prima facie prejdicial to te interestof te Company.

d Te loans taken are re-payable on demand. Asinformed, te lenders ae not demanded repaymentof any sc loan dring te year, ts, tere as beenno defalt on te part of te Company. Te loan taken

is interest free.i In or opinion and according to te information and

eplanations gien to s, tere is an adeqate internalcontrol system commensrate wit te size of teCompany and te natre of its bsiness, for te prcaseof inentory and fied assets and for te sale of goods andserices. Dring te corse of or adit, no major weaknessas been noticed in te internal control system in respect of tese areas.

a Based on te Adit procedres applied by s andaccording to te information and eplanation proided by te Management, we are of te opinion tat teparticlars of contracts or arrangements referred

to in Section 301 of te act, tat need to be enteredinto te register maintained nder Section 301 of teCompanies Act, 1956 ae been so entered.

b In respect of transactions made in prsance of sccontracts or arrangements eceeding ale of ` fielaks ae been entered into dring te financial year,at prices wic are reasonable aing regard to tepreailing market prices at te releant time.

i Te Company as not accepted any deposits from tepblic to wic te directies issed by te Resere Bank of India, te proision of Sections 58A and 58AA or any oter releant proisions of te Companies Act, 1956 andte rles framed tere nder apply.


iii To te best of or knowledge and as eplained, te CentralGoernment as not prescribed maintenance of cost recordsnder clase d of sb-section 1 of Section 209 of te

Companies Act, 1956 for te prodcts of te Company.

i a According to te information and eplanations giento s, and on te basis of or eamination of te books of accont, te Company is generally reglarin depositing wit appropriate atorities ndisptedstattory des inclding proident fnd, inestoredcation and protection fnd, employees stateinsrance, income ta, sales ta, serice ta, wealtta, cess and oter material stattory des applicableto it.

b According to te information and eplanations giento s, no ndispted amonts payable in respect of proident fnd, inestor edcation and protection

fnd, employees state insrance, income ta, wealtta, sales ta, cstom dty, ecise dty, serice ta and cess wic were otstanding at te year end, fora period of more tan si monts from te date tey became payable.

c According to te information and eplanations giento s, tere are no des of income ta , sales ta, wealtta, serice ta, cstoms dty, ecise dty and cess wic ae not been deposited on accont of any dispte.

Te Company as no accmlated losses as at te end of te financial year and it as not incrred cas losses in tecrrent and immediately preceding financial year.

i Based on or adit procedres and as per te informationand eplanations gien by te management, we are of teopinion tat te Company as not defalted in repaymentof des to a financial instittion and/or banks.

ii According to te information and eplanations gien to sand based on te docments and records prodced to s,te Company as not granted loans and adances on te basis of secrity by way of pledge of sares, debentres andoter secrities.

iii In or opinion, te Company is not a cit fnd or a nidi /mtal benefit fnd / society. Terefore, te proisions of clase 4iii of te Companies Aditors’ Report Order,

2003 as amended are not applicable to te Company. i In or opinion, te Company is not dealing in or trading

in sares, secrities, debentres and oter inestments. Accordingly, te proisions of clase 4i of te





Aal port 200910

101

Companies Aditors’ Report Order, 2003 as amendedare not applicable to te Company.

According to te information and eplanations gien to s,te Company as not gien any garantee for loans taken

by oters from banks or financial instittions. i To te best of or knowledge and belief and according to

te eplanations gien to s te Company as not raisedany term loans dring te year.

ii According to te information and eplanations gien tos and on an oerall eamination of te Balance Seet of te Company, we report tat no fnds raised on sort-term basis ae, prima facie, been sed for long-terminestment.

iii Te Company as not made any preferential allotmentof sares to parties or companies coered in te registermaintained nder Section 301 of te Companies Act,1956.

i Te Company did not ae any otstanding debentresdring te year.

Dring te period coered by or adit report, teCompany as not raised any money by pblic isses.

i Based on te adit procedres performed for te prposeof reporting te tre and fair iew of te financial statementand as per te information and eplanations gien to s, we report tat no frad on or by te Company as beennoticed or reported dring te corse of or adit.

f Bab & pCartered Accontants


Kaa maPlace: Mmbai PartnerDate: Jne 30, 2010 Membersip No. 111749




102




Kaa ma A daaka sva A daakaPartner Cairman DirectorMembersip No. 111749

Place : Mmbai d. Kab na Date : Jne 30, 2010 Director

Amont in `

s A a

31 ma, 2010 A a

31 ma, 2009

I sources of funds

1. ShAREhOLDERS’ FuNDSa. Sare Capital ‘A’ 20,110,000 20,110,000 b. Reseres & Srpls ‘B’ 40,233,590 239,303

60,343,590 20,349,3032. LOAN FuNDS

Secred Loans ‘C’ 72,423,476 -unsecred Loans ‘D’ 242,064,868 153,996,961

314,488,344 153,996,961


381,138,250 179,343,237


1. FIxED ASSETS ‘E’a. Gross Block 112,408,053 112,408,053 b. Less: Depreciation 13,196,667 9,571,625c. Net Block 99,211,386 102,836,428

Add : Capital Work-In-Progress 122,125,000 -221,336,386 102,836,428

2. INvESTMENTS ‘F’ 30,000 -

3. CuRRENT ASSETS, LOANS & ADvANCES ‘G’ 245,931,236 102,054,862LESS: CuRRENT LIABILITIES & PROvISIONS ‘h’ 86,159,372 25,599,913NET CuRRENT ASSETS 159,771,864 76,454,949

4. MISCELLANEOuS ExPENDITuRE ‘h1’ - 51,860To te etend not adjsted or written off

381,138,250 179,343,237

Significant acconting policies & Notes on acconts ‘L’





Aal port 200910

103

Amont in `

sf a

31 ma, 2010f a

31 ma, 2009

I income

Sales 623,846,990 133,405,551Less: Ecise dty 262,571,484 62,681,391

361,275,506 70,724,160

Oter Income ‘I’1 330,165 90,136

361,605,671 70,814,296

II expenditure

Increase / Decrease in stock ‘I’2 76,888,821 5,274,741Cost of material ‘I’3 199,948,429 56,602,379Salaries & Wages ‘J’ 5,413,596 2,753,379Manfactring and oter epenses ‘K’ 161,938,022 13,650,165Finance cost 6,263,913 91,561Preliminary & Pre-operatie epenses written off 51,860 51,860Depreciation 3,625,042 3,606,758

300,352,041 71,481,361

Profit / Loss before taation 61,253,630 667,065Less: Proision for taationCrrent years’ 19,950,000 -Fringe Benefit Ta - 108,602Deferred Ta 1,309,343 1,627,302

21,259,343 1,735,904

Profit / Loss after taation 39,994,287 2,402,969Less : Prior Period Epenses net - 105,678 Add: Balance brogt forward from preios years 239,303 2,747,950Balance transferred to Balance Seet 40,233,590 239,303

Earnings Per Sare ` Basic 19.89 1.25Refer Note of Scedle ‘L’










104


Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘A’

ShARE CAPITAL

A3,000,000 eqity sares of ` 10/- eac 30,000,000 30,000,000P.Y. 3,000,000 eqity sares of ` 10/- eac

i, sbb A pa u2,011,000 Eqity Sares of ` 10/- eac flly paid p 20,110,000 20,110,000P.Y. 2,011,000 Eqity Sares of ` 10/- eac flly paid p

20,110,000 20,110,000

schedule ‘B’

RESERvES & SuRPLuS

p & l A 40,233,590 239,303

40,233,590 239,303

schedule ‘c’

SECuRED LOANS

ca cAgainst ypotecation of stock of raw material, 72,423,476 - work-in-progress, finised goods, stores, & book debts and second carge on te fied assets of te Company sitated at Andra Prades

72,423,476 -

schedule ‘d’

uNSECuRED LOANS

Adances from holding Company 242,064,868 153,996,961

242,064,868 153,996,961





Aal port 200910

105

s c h e d

u l e ‘ e ’

( A m o n t i n ` )

F I x E D A S S E T S

G R O S S B L O C K

D E P

R E C I A T I O N / A M O R T I S A T I O N

N E T B L O C K

A a

1 A ,

2 0 0 9

A n

d n

A a

3 1 m a ,

2 0 1 0

A a

1 A ,

2 0 0 9

d n

f a

A a

3 1 m a ,

2 0 1

0

A a

3 1 m a ,

2 0 1 0

A a

3 1 m a ,

2 0 0 9

t a n g b A

L a n d

1 7 , 6

1 6 , 7

6 5

-

-

1 7 , 6

1 6 , 7

6 5

-

-

-

-

1 7 , 6

1 6 , 7

6 5

1 7 , 6

1 6 , 7

6 5

B i l d i n g s

7 1 , 5

6 2 , 5

5 6

-

-

7 1 , 5

6 2 , 5

5 6

5 , 5

4 0 , 8 3 1

-

2 , 3

9 0 , 1

8 7

7 , 9

3 1 , 0 1

8

6 3 , 6

3 1 , 5

3 8

6 6 , 0

2 1 , 7

2 5

P l a n t & M a c i n e r y

2 1 , 8

7 9 , 2

8 4

-

-

2 1 , 8

7 9 , 2

8 4

3 , 8

1 7 , 6 8 1

-

1 , 1

5 5 , 2

2 7

4 , 9

7 2 , 9 0

8

1 6 , 9

0 6 , 3

7 6

1 8 , 0

6 1 , 6

0 3

F r n i t r e & F i t r e s

7 0 1 , 2

2 4

-

-

7 0 1 , 2

2 4

1 2 2 , 6 3 4

-

4 4 , 3

8 8

1 6 7 , 0 2

2

5 3 4 , 2

0 2

5 7 8 , 5

9 0

C o m p t e r s

2 3 , 0

0 0

-

-

2 3 , 0

0 0

1 0 , 5 7 4

-

3 , 7

2 9

1 4 , 3 0

3

8 , 6

9 7

1 2 , 4

2 6

E l e c t r i c a l I n s t a l l a t i o n

& F i t t i n g s

5 8 7 , 0

7 0

-

-

5 8 7 , 0

7 0

6 8 , 5 9 3

-

2 7 , 8

8 6

9 6 , 4 7

9

4 9 0 , 5

9 1

5 1 8 , 4

7 7

M o t o r C a r a n d

T r a n s p o r t v e

i c l e s

3 8 , 1

5 4

-

-

3 8 , 1

5 4

1 1 , 3 1 2

-

3 , 6

2 5

1 4 , 9 3

7

2 3 , 2

1 7

2 6 , 8

4 2

1 1 2 , 4

0 8 , 0

5 3

-

- 1 1 2 , 4

0 8 , 0

5 3

9 , 5

7 1 , 6 2 5

-

3 , 6

2 5 , 0

4 2

1 3 , 1

9 6 , 6 6

7

9 9 , 2

1 1 , 3

8 6

1 0 2 , 8

3 6 , 4

2 8

C a p i t a l W I P

- 1

2 2 , 1

2 5 , 0

0 0

- 1

2 2 , 1

2 5 , 0

0 0

-

-

-

- 1

2 2 , 1

2 5 , 0

0 0

-

G a n t a

1 1 2 , 4

0 8 , 0

5 3 1

2 2 , 1

2 5 , 0

0 0

- 2 3 4 , 5

3 3 , 0

5 3

9 , 5

7 1 , 6 2 5

-

3 , 6

2 5 , 0

4 2

1 3 , 1

9 6 , 6 6

7 2

2 1 , 3

3 6 , 3

8 6 1

0 2 , 8

3 6 , 4

2 8

P r e i o s Y e a r

1 0 9 , 5

8 5 , 2

3 5

2 , 8

2 2 , 8

1 8

- 1

1 2 , 4

0 8 , 0

5 3

5 , 9

6 4 , 8 6 7

-

3 , 6

0 6 , 7

5 8

9 , 5

7 1 , 6 2

5

1 0 2 , 8

3 6 , 4

2 8





106

Amont in `

sa/u

A a31 ma, 2010

A a31 ma, 2009

schedule ‘f’

INvESTMENTS

Crrent, non-trade, nqotedI. Sares in Joint Stock CompaniesSamrao vital Co-operatie Bank Ltd. Eqity 30,000 -

30,000 -

schedule ‘G’


c Aiv a Raw material 83,143 10,618,835Stores, components 27,331,653 16,220,389 Work-in-process 27,147,550 2,122,404Stock-in-trade 55,016,012 3,152,337

109,578,358 32,113,965

s db , ga Otstanding eceeding si monts - -b Oters 115,947,134 47,998,213

115,947,134 47,998,213ca a bak baaCas and ceqes on and 113,899 32,168In Crrent Acconts wit Scedled Banks 528,868 688,587In Fied Deposits wit Scedled Banks 3,285,401 3,707,627

3,928,168 4,428,382la & Ava

unsecred considered good Adances recoerable in cas or in kind or for ale to be receied 4,255,576 4,217,302Deposits 12,222,000 13,297,000

16,477,576 17,514,302

245,931,236 102,054,862






Aal port 200910

107

Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘h’


c labSndry Creditors

Micro & Small Enterprises Refer Note i - -Oters 41,388,961 25,491,31141,388,961 25,491,311

pvProision for Taation Net of Adance Ta 19,045,355 108,602Proision for Leae Encasment 50,638Oter Proisions 25,674,418 -

44,770,411 108,602

86,159,372 25,599,913

SChEDuLE ‘h’(1)

MISCELLANEOuS ExPENDITuRE

Preliminary & Pre-operatie epenses As per last Balance Seet 51,860 103,720Less: Written off dring te year 51,860 51,860

- 51,860

Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

SChEDuLE ‘I’(1)

OThER INCOME

Miscellaneos receipts 226,769 89,001Interest income 101,021 -Sndry balances written back 2,375 1,135

330,165 90,136

SChEDuLE ‘I’(2)

(INCREASE) / DECREASE IN STOCK

Opening Stock i Work-in-process 2,122,404 -ii Finised goods 3,152,337 -

5,274,741 -





108

Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

SChEDuLE ‘I’(2)

Less : Closing Stock i Work-in-process 27,147,550 2,122,404ii Finised goods 55,016,012 3,152,337

82,163,562 5,274,741

Net Increase/Decrease in Stock (76,888,821) (5,274,741)

SChEDuLE ‘I’(3)

COST OF MATERIAL

i Raw Material ConsmptionOpening Stock 10,618,835 1,804,684 Add: Prcases 78,454,946 36,168,036Less: Closing Stock 83,143 10,618,835

88,990,638 27,353,885

ii Packing Material & Consmables 110,957,791 29,248,494

199,948,429 56,602,379

SChEDuLE ‘J’

SALARIES & WAGES

Salary and wages 4,416,964 2,243,913Contribtion to proident fnd and family pension fnd 259,013 114,531Labor and staff welfare epenses 737,619 394,935

5,413,596 2,753,379

SChEDuLE ‘K’


Power and fel 986,384 434,425Ecise dty on finised goods 25,674,418 -Repairs & maintenance 496,659 62,174Insrance 40,829 -Conersion cost 726,903 116,707Legal and professional carges 264,506 590,389 Adit fees 115,815 225,450Rates and taes 10,014,980 5,171,233Trnoer ta 689,842 -Freigt, transport carges & oter epenses 8,476,037 2,547,914Selling epenses [Disconts,Sales Promotion & Adertising etc.] 58,336,387 2,689,269Traelling and coneyance epenses 131,733 373,594Printing and stationery 93,919 -Commnication epenses 98,272 42,781 veicle rnning epenses 19,935 30,985

Establisment epenses 47,562,005 -Director sitting fees - 47,277Miscellaneos epenses 8,209,398 1,317,967

161,938,022 13,650,165


FInAncIAL SAemenS Shdls ad nots




Aal port 200910

109

schedule ‘l” siGnificAnt AccountinG policies & notes on Accounts


Ba paa faa sa:


u ea:

Te preparation of financial statements reqires estimates and assmptions to be made tat affect te reported amont of assets and liabilities on te date of te financial statements and te reported amont of reenes and epenses dring tereporting period. Difference between te actal reslts and estimates are recognised in te period in wic te reslts areknown/ materialised.

rv rg:

All reene and epenses are acconted for on accral basis. Reene is recognised wen no significant ncertainties eist inrelation to te amont of eental receipt.



v iv:

Inentories are stated at te lower of cost and net realisable ale. Cost is determined on te basis of Weigted Aeragemetod.


b Finised goods are aled at manfactring cost, wic comprise direct material, direct labor, oter direct cost andoter related manfactring oereads. Ecise dty payable on finised goods stock is added to te cost.

v f A:



Ependitre incrred dring constrction/erection period Inclding finance cost relating to borrowed fnds forconstrction or acqisition of fied assets on project nder implementation are inclded nder “Capital work-in-progress”. Tese epenses are appropriated to fied assets on commencement of commercial prodction.

v da a Aa:

a Depreciation is proided on te “Straigt Line Metod” in te manner and at te rates specified in Scedle xIv of teCompanies Act, 1956.

b Depreciation is proided on assets acqired dring te year from te date on wic assets were pt to se.

v ia A:



v iv:





Aal port 200910

113

Amont in `

2009-10 2008-09

uom r % Rupees %

5. vALuE OF IMPORTED & INDIGENOuS RAW MATERIAL & COMPONENTS CONSuMEDi Imported - - - -ii Indigenos 88,990,638 100 27,353,885 100

88,990,638 27,353,885


7. EARNINGS IN FOREIGN ExChANGE - -


9. ExPENDITuRE IN FOREIGN ExChANGE - -





114

Amont in `

2009-10 2008-09


Net profit before ta & etraordinary items 61,253,630 772,743 Adjstment forDepreciation 3,625,042 3,606,758Miscellaneos epenses written off 51,860 51,860Interest net 6,263,913 91,561

9,940,815 3,750,179Operating Profit before working capital canges Adjstment forIncrease / Decrease in inentory 77,464,393 30,309,281Increase / Decrease in trade receiables 67,948,921 38,672,039Increase / Decrease in loans and adances 1,036,726 1,704,858Decrease / Increase in trade payable and proisions 60,559,459 25,064,345

83,817,129 42,212,117

Ta proision 19,950,000 108,602

NET CASh FROM OPERATING ACTIvITIES 32,572,684 39,343,283


Prcase of fied assets 122,125,000 2,822,818Increase in inestments 30,000 -

NET CASh FROM INvESTING ACTIvITIES 122,155,000 2,822,818


Proceeds from borrowings 160,491,383 46,597,271Interest paid 6,263,913 91,561

NET CASh FROM FINANCING ACTIvITIES 154,227,470 46,505,710

NET INCREASE IN CASh & CASh EQuIvALENTS 500,214 4,339,609Opening cas & cas eqialents 4,428,382 88,773Closing cas & cas eqialents 3,928,168 4,428,382

NoteTe increase in bsiness operations as reflected by an increase in receiables and stocks are fnded from bank f inanceWorking Capital facilities reslting in negatie cas from operating actiities.






FInAncIAL SAemenS cash Flow Statt ad Bala Sht Abstrat




Aal port 200910

115







Bons Isse N I L Priate Placement N I LEqity Sares


Total Liabilities 4 6 7 2 9 7 Total Assets 4 6 7 2 9 7

SOuRCES OF FuNDS

Paid-p Capital 2 0 1 1 0 Reseres and Srpls 4 0 2 3 4

Secred Loans 7 2 4 2 3 unsecred Loans 2 4 2 0 6 5

Deferred Ta Liabiltiy 6 3 0 6 Crrent Liabilities 8 6 1 5 9


Net Fied Assets 2 2 1 3 3 6 Inestment 3 0

Crrent Assets 2 4 5 9 3 1 Miscellaneos Ependitre N I L

Accmlated Losses N I L


Trnoer* 6 2 4 1 7 7 Total Ependitre 5 6 2 9 2 3+ - + -

Profit/Loss Before Ta P 6 1 2 5 4 Profit/Loss After Ta P 3 9 9 9 4

+ -Earning per sare In ` P 1 9 . 8 9 Diidend Rate % N I L

Basic


monetAry terms)

Item Code No ITC Code 2 2 0 7 1 0 . 0 1


Item Code No. ITC Code 2 2 0 8 3 0 . 0 0Prodct Description I M F L W h I S K I E S







Sra Orgai chials (P) Ltd.

116

Fiaial Statts


117 directors’ report



122 BAlAnce sheet


124 schedules

128 notes



FInAncIAL SAemenS Dirtors’ port




Aal port 200910

117

Dirtors’ port

Surya Organic Chemicals (P) Ltd.

Registered Office: P. O. Tilaknagar, Tal. Srirampr, Dist. Amednagar, Maarastra - 413 720.

da mb,

Yor Directors ae te pleasre in presenting te 18t AnnalReport togeter wit Adited Statement of Acconts of yorCompany for te financial year ended 31st Marc, 2010.

finAnciAl results

Dring te year nder reiew, te Company as incrred NetLoss of ` 22,326,785/- after proiding for depreciation of ` 233,105/- as compared to Net Loss of ` 12,180,446/- afterproiding depreciation of ` 263,403/- in 2008-09.

Te Directors are opefl of consolidating operations of yorCompany dring te coming years.

opeRtionAl reView

Yor Directors are pleased to inform tat te manfactringnit of yor Company as started prodction and sales actiitiesfrom Janary, 2010. Accordingly, yor Company looks forwardto improing its performance dring te crrent financial year2010-11 trog introdction of more brands and acceleratingprodction and sales. Yor Company as ndertaken inestmentsto improe te crrent manfactring infrastrctre wic will

ensre improement in prodctiity, qality and oter work processes wile redcing net cost of manfactring.

diVidend

In iew of te loss incrred by te Company dring te financial year nder reiew, yor Directors do not recommend any diidend.

directors

Mr. Amit Daankar, Cairman of te Company retires by rotation at te ensing Annal General Meeting and beingeligible, offers imself for re-appointment.

holdinG compAny Yor Company is a wolly owned sbsidiary of TilaknagarIndstries Ltd.

directors’ responsiBility stAtement

As stiplated in Section 2172AA of te Companies Act,1956, on te basis of te information frnised to tem by testattory aditors and management, yor Directors state tat:

a. in preparation of te annal acconts, te applicableacconting standards ae been followed and tere are nomaterial departres.

b. tey ae selected sc acconting policies and applied

tem consistently and made jdgements and estimates tatare reasonable and prdent so as to gie a tre and fair iew of te state of affairs of te Company at te end of te yearand of te loss of te Company for te year.

c. tey ae taken proper and sfficient care for temaintenance of adeqate acconting records in accordance wit te proisions of te Companies Act, 1956, forsafegarding te assets of te Company and preentingand detecting frad and oter irreglarities.

d. tey ae prepared annal acconts on a going concern basis.

pArticulArs of employees under section217(2A) of the compAnies Act, 1956

Te Company did not ae any employee wo was in receiptof remneration wic in aggregate amonted to ` 2,400,000/-or more, if employed trogot te year or ` 200,000/- permont, if employed for part of te year.

conserVAtion of enerGy, technoloGy ABsorption And foreiGn exchAnGeeArninGs And out Go

Details wit respect to Conseration of Energy and Tecnology Absorption, as reqired nder Section 2171e of teCompanies Act, 1956 are frnised erender:




118

A) CONSERvATION OF ENERGY

Te Company is making continos effort to redce energy consmption by jdicios se and preentie maintenance of te plants and by optimising te se of energy trog improed operational metods.

f - A

ta eg a g

u ya

2009-10 ya

2008-09

A. power And fuel consumption

1. ELECTRICITY Prcased - nits ‘000 0.04 NilTotal Amont ` In Lacs 0.23 NilRate per nit ` 6.09 Nil

2. STEAM COAL

For generation of steam Ton Nil NilTotal amont ` In Lacs Nil Nil Aerage rate per MT `/MT Nil Nil

u 2009-10e

2008-09e

B. consumption per unit of production

NAME OF ThE PRODuCTIMFL BL 0.03 Nil

B) TEChNOLOGY ABSORPTION/INNOvATION AND

ADOPTION / RESEARCh AND DEvELOPMENTSince bsiness and tecnologies are canging constantly and continosly, inestment in Researc & Deelopmentactiities is of paramont importance. Yor Company is continosly ndertaking Researc & Deelopmentactiities and taking steps for qality pgradation on acontinos basis.

C) FOREIGN ExChANGE EARNINGS AND OuTGO

Te Company as not earned any income or incrred any epenses in foreign ecange.

fixed deposits

Te Company as not accepted any fied deposits from pblicdring te year.

Auditors

M/s. Batliboi & Proit, Stattory Aditors of te Company,sall retire at te conclsion of te ensing Annal GeneralMeeting and being eligible, ae offered temseles forreappointment.

Auditors’ report

Wit reference to te obserations made by te Aditors innote no. x to teir Adit Report, Board wis to state tat yor

Company as started its operations in te mont of Janary

2010. At present te plant is rnning at its fll capacity and te

Board is opefl to make te Company profitable in te coming years.

compliAnce certificAte under section383A

Te Company as obtained Compliance Certificate as reqirednder Section 383A of te Companies Act, 1956.

AcKnowledGement

Yor Directors take tis opportnity to epress teir sinceretanks and appreciation towards all te employees of teCompany for teir commendable teamwork, woleeartedefforts and inestimable contribtion to te contined growt of

te Company.

Yor Directors also tank inestors, bsiness partners, clients,tecnology proiders, endors, financial instittions & banks, dealers& sppliers, reglatory & goernment atorities and aditors forteir contined spport to te Company dring te year.

For and on bealf of te Board

Place: Mmbai A daakaDate: Jne 30, 2010 Cairman





Aal port 200910

119

Aditors’ port

t t mb sa oga ca p l.

1. We ae adited te attaced Balance Seet of SuryaOrganic Chemicals (P) Ltd. “te Company” as at31st Marc, 2010, te Profit and Loss Accont and CasFlow Statement of te Company for te year ended ontat date anneed tereto. Tese financial statements arete responsibility of te Company’s management. Orresponsibility is to epress an opinion on tese financialstatements based on or adit.

2. We condcted or adit in accordance wit te aditingstandards generally accepted in India. Tose Standards

reqire tat we plan and perform te adit to obtainreasonable assrance abot weter te financialstatements are free of material misstatement. An aditincldes eamining, on a test basis, eidence spportingte amonts and disclosres in te financial statements. Anadit also incldes assessing te acconting principles sedand significant estimates made by management, as well asealating te oerall financial statement presentation. We beliee tat or adit proides a reasonable basis for oropinion.

3. As reqired by te Companies Aditors’ Report OrderAmendment 2004 issed by te Central Goernment of India in terms of sb-section 4A of Section 227 of te

Companies Act, 1956, we enclose in te Annere ereto astatement on te matters specified in paragraps 4 and 5 of te said Order.

4. Frter to or comments in te Annere referred to inparagrap 3 aboe, we report tat:

i We ae obtained all te information and eplanations, wic to te best of or knowledge and belief werenecessary for te prposes of or adit;

ii In or opinion, proper books of accont as reqired by law ae been kept by te Company so far as appearsfrom or eamination of tose books;

iii Te Balance Seet, te Profit and Loss Accont andCas Flow Statement dealt wit by tis report are inagreement wit te books of accont;

i In or opinion, te Balance Seet, te Profit andLoss Accont and Cas Flow Statement dealt wit by tis report comply wit te acconting standards &referred to in sb-section 3C of Section 211 of teCompanies Act, 1956.

On te basis of written representations receied fromte directors of te Company as on 31st Marc, 2010,and taken on record by te Board of Directors, wereport tat none of te directors is disqalified as on31st Marc, 2010 from being appointed as a directorin terms of clase g of sb-section l of Section 274of te Companies Act, 1956.

i In or opinion and to te best of or information andaccording to te eplanations gien to s, te saidacconts read togeter wit te significant accontingpolicies and oter notes tereon, gie te informationreqired by te Companies Act, 1956 in te mannerso reqired and gie a tre and fair iew in conformity wit te acconting principles generally accepted inIndia:

a in te case of te Balance Seet, of te state of affairs of te Company as at 31st Marc, 2010;

b in te case of te Profit and Loss Accont of teloss for te year ended on tat date and;

c in te case of te Cas Flow Statement of tecas flows for te year ended on tat date.

For Batliboi & PurohitCartered Accontants


Kaushal MehtaPlace: Mmbai PartnerDate: Jne 30, 2010 Membersip No. 111749




120

Annexure to the Auditors’ reportReferred to in paragrap [3] of or report of een date


and sitation of fied assets.b Fied Assets ae been pysically erified by te

management dring te year and no materialdiscrepancies were noticed on sc erification.


ii a Te management as condcted pysical erificationof inentory dring te year. In or opinion, tefreqency of erification is reasonable.

b In or opinion, te procedres of pysical erificationof inentory followed by te management arereasonable and adeqate in relation to te size of te

Company and te natre of its bsiness.

c Te Company is maintaining proper records of inentory and discrepancies noticed on pysical erification of stocks were not material in relation tote operations of te Company and te same ae been properly dealt wit, in te books of acconts.

iii a Te Company as not granted any loans secred ornsecred to parties, firms or Companies coeredin te register maintained nder Section 301 of teCompanies Act, 1956.

b Te Company as taken loan from one party coeredin te register maintained nder Section 301 of

te Companies Act, 1956. Te maimm amontinoled dring te year was ` 10.31 crores and te year end balance of loans taken from sc parties was` 10.31 crores.

c In or opinion and according to te information andeplanations gien to s, te terms and conditions forsc loan is not prima facie prejdicial to te interestof te Company.

d Te loans taken are repayable on demand. Asinformed, te lenders ae not demanded repaymentof any sc loan dring te year, ts, tere as beenno defalt on te part of te Company. Te loan takenis interest free.

i In or opinion and according to te information andeplanations gien to s, tere is an adeqate internalcontrol system commensrate wit te size of teCompany and te natre of its bsiness, for te prcaseof inentory and fied assets and for te sale of goods andserices. Dring te corse of or adit, no major weaknessas been noticed in te internal control system in respect of tese areas.

a Based on te Adit procedres applied by s andaccording to te information and eplanation proided by te Management, we are of te opinion tat te

particlars of contracts or arrangements referred toin Section 301 of te Act, tat need to be enteredinto te register maintained nder Section 301 of teCompanies Act, 1956 ae been so entered.

b In respect of transactions made in prsance of sccontracts or arrangements eceeding ale of ` fielaks ae been entered into dring te financial year,at prices wic are reasonable aing regard to tepreailing market prices at te releant time.

i Te Company as not accepted any deposits from tepblic to wic te directies issed by te Resere Bank of India, te proision of Sections 58A and 58AA or any oter releant proisions of te Companies Act, 1956 andte rles framed tere nder apply.


iii To te best of or knowledge and as eplained, te CentralGoernment as not prescribed maintenance of costrecords nder clase d of sb-section 1 of Section

209 of te Companies Act, 1956 for te prodcts of teCompany.

i a According to te information and eplanations giento s, and on te basis of or eamination of te books of accont, te Company is generally reglarin depositing wit appropriate atorities ndisptedstattory des inclding proident fnd, inestoredcation and protection fnd, employees stateinsrance, income ta, sales ta, serice ta, wealtta, cess and oter material stattory des applicableto it.

b According to te information and eplanations gien

to s, no ndispted amonts payable in respect of proident fnd, inestor edcation and protectionfnd, employees state insrance, income ta, wealtta, sales ta, cstom dty, ecise dty, serice ta and cess wic were otstanding at te year end, fora period of more tan si monts from te date tey became payable.

c According to te information and eplanations giento s, tere are no des of income ta , sales ta, wealtta, serice ta, cstoms dty, ecise dty and cess wic ae not been deposited on accont of any dispte.

The Company’s accumulated losses at the end of the financial year are more than fifty percent of its net worth. The Companyhas incurred cash loss during the year and also in theimmediately preceding financial year.

i Based on or adit procedres and as per te informationand eplanations gien by te management, we are of teopinion tat te Company as not defalted in repaymentof des to a financial instittion and/or banks.

ii According to te information and eplanations gien to sand based on te docments and records prodced to s,te Company as not granted loans and adances on te

basis of secrity by way of pledge of sares, debentres andoter secrities.

iii In or opinion, te Company is not a cit fnd or a nidi /mtal benefit fnd / society. Terefore, te proisions of





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121

clase 4iii of te Companies Aditors’ Report Order,2003 as amended are not applicable to te Company.

i In or opinion, te Company is not dealing in or tradingin sares, secrities, debentres and oter inestments.

Accordingly, te proisions of clase 4i of teCompanies Aditors’ Report Order, 2003 as amendedare not applicable to te Company.

According to te information and eplanations gien to s,te Company as not gien any garantee for loans taken by oters from bank or financial instittions.

i To te best of or knowledge and belief and according tote eplanations gien to s te Company as not raisedany term loans dring te year.

ii According to te information and eplanations gien to s

and on an oerall eamination of te Balance Seet of teCompany, no fnds were raised on sort-term basis.

iii Te Company as not made any preferential allotmentof sares to parties or companies coered in te registermaintained nder Section 301 of te Companies Act, 1956.

i Te Company did not ae any otstanding debentres

dring te year.

Dring te period coered by or adit report, teCompany as not raised any money by pblic isses.

i Based on te adit procedres performed for te prposeof reporting te tre and fair iew of te financial statementand as per te information and eplanations gien to s, we report tat no frad on or by te Company as beennoticed or reported dring te corse of or adit.



Kaushal MehtaPlace: Mmbai PartnerDate: Jne 30, 2010 Membersip No. 111749




122


Amont in `

s A a

31 ma, 2010 A a

31 ma, 2009

I sources of funds

1. ShAREhOLDERS’ FuNDSa. Sare Capital ‘A’ 7,305,000 7,305,000 b. Reseres & Srpls ‘B’ 1,897,150 1,897,150

9,202,150 9,202,1502. LOAN FuNDS

a. unsecred Loans ‘C’ 103,088,776 45,739,007

112,290,926 54,941,157


1. FIxED ASSETS ‘D’a. Gross Block 10,720,023 10,720,023 b. Less: Depreciation 8,809,206 8,576,101c. Net Block 1,910,817 2,143,922

Add : Capital Work-In-Progress 20,000,000 -21,910,817 2,143,922

2. CuRRENT ASSETS, LOANS & ADvANCES ‘E’ 38,197,408 4,660,773LESS: CuRRENT LIABILITIES & PROvISIONS ‘F’ 30,886,612 12,606,066NET CuRRENT ASSETS 7,310,796 7,945,293

3. PROFIT & LOSS ACCOuNT 83,069,313 60,742,528

112,290,926 54,941,157

Significant acconting policies & Notes on acconts ‘J’


For Batliboi & PurohitCartered AccontantsFirm Registration No. 101048W

Kaushal Mehta Amit Dahanukar Shivani Amit DahanukarPartner Cairman Director

Membersip No. 111749Place : Mmbai Dr. Keshab Nandy Date : Jne 30, 2010 Director





Aal port 200910

123

Amont in `

sf a

31 ma, 2010f a

31 ma, 2009

I income

Sales 37,645,616 -Less: Ecise dty 28,508,816 -

9,136,800 -

Oter Income 331,388 560,965

9,468,188 560,965

II expenditure

Increase / Decrease in stock ‘G’1 12,521,558 -Cost of material ‘G’2 12,488,278 -Employees’ remneration and benefits ‘h’ 251,805 86,684Manfactring and oter epenses ‘I’ 31,342,021 12,391,324Finance cost 1,322 -Depreciation 233,105 263,403

31,794,973 12,741,411

Profit / Loss before taation 22,326,785 12,180,446Less: Proision for taationCrrent years’ - -Deferred Ta Refer Note iii - -

Profit / Loss after taation 22,326,785 12,180,446

Add: Balance brogt forward from preios years 60,742,528 48,562,082

Balance transferred to Balance Seet 83,069,313 60,742,528

Earnings Per Sare ` Basic 305.64 166.74Refer Note ii of Scedle ‘J’

Significant acconting policies & Notes on acconts ‘J’








Aal port 200910

125


s c h e d

u l e ‘ d ’

( A m o n t i n ` )


G R O S S B L O C K

D E

P R E C I A T I O N / A M O R T I S A T I O N

N E T B L O C K

A s a t

1 s t A p r i l ,

2 0 0 9

A d d i t i o n s

D e d u c t i o n s

A s a t

3 1 s t M a r c h ,

2 0 1 0

A s a t

1 s t A p r i l ,

2 0 0

9

D e d u c t i o n s

F o r t h e

y e a r

A s a t

3 1 s t M a r c h ,

2 0 1 0

A s a t

3 1 s t M a r c h ,

2 0 1 0

A s a t

3 1 s t M a r c h ,

2 0 0 9

t a n g b A

L a n d

1 5 , 0

0 0

-

-

1 5 , 0

0 0

-

-

-

-

1 5 , 0

0 0

1 5 , 0

0 0

B i l d i n g

s

4 , 6

9 5 , 6

4 5

-

-

4 , 6

9 5 , 6

4 5

3 , 4

0 2 , 0 8

1

-

1 1 6 , 6

7 9

3 , 5

1 8 , 7

6 0

1 , 1

7 6 , 8

8 5

1 , 2

9 3 , 5

6 4

P l a n t & M a c i n e r y

5 , 9

6 5 , 9

5 0

-

-

5 , 9

6 5 , 9

5 0

5 , 1

3 5 , 3 1

3

-

1 1 5 , 5

4 2

5 , 2

5 0 , 8

5 5

7 1 5 , 0

9 5

8 3 0 , 6

3 7

F r n i t r e & F i t r e s

4 0 , 6

4 1

-

-

4 0 , 6

4 1

3 6 , 2 8

9

-

7 8 8

3 7 , 0

7 7

3 , 5

6 4

4 , 3

5 2

v e i c l e s

2 , 7

8 7

-

-

2 , 7

8 7

2 , 4 1

8

-

9 6

2 , 5

1 4

2 7 3

3 6 9

1 0 , 7

2 0 , 0

2 3

-

-

1 0 , 7

2 0 , 0

2 3

8 , 5

7 6 , 1 0

1

-

2 3 3 , 1

0 5

8 , 8

0 9 , 2

0 6

1 , 9

1 0 , 8

1 7

2 , 1

4 3 , 9

2 2

c a a w i p

-

2 0 , 0

0 0 , 0

0 0

-

2 0 , 0

0 0 , 0

0 0

-

-

-

-

2 0 , 0

0 0 , 0

0 0

-

G a n t

a

1 0 , 7

2 0 , 0

2 3

2 0 , 0

0 0 , 0

0 0

-

3 0 , 7

2 0 , 0

2 3

8 , 5

7 6 , 1 0

1

-

2 3 3 , 1

0 5

8 , 8

0 9 , 2

0 6

2 1 , 9

1 0 , 8

1 7

2 , 1

4 3 , 9

2 2

p v y a

1 0 , 7

2 0 , 0

2 3

-

-

1 0 , 7

2 0 , 0

2 3

8 , 3

1 2 , 6 9

8

-

2 6 3 , 4

0 3

8 , 5

7 6 , 1

0 1

2 , 1

4 3 , 9

2 2

-




126

Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘e’


c Aiv a

Raw material 213,185 367,804

Stores, components 790,125 9,614 Work in process 912,047 -Stock-in-trade 13,460,214 1,850,703

15,375,571 2,228,121

s b , ga Otstanding eceeding si monts - -b Oters 15,916,968 -

15,916,968 -

ca a bak baaCas and ceqes on and 512,125 511,923In Crrent Acconts wit Scedled Banks 4,581,074 -

5,093,199 511,923

la & Ava

unsecred considered good Adances recoerable in cas or in kind orfor ale to be receied 1,786,670 1,840,333Deposits 25,000 80,396

1,811,670 1,920,729

38,197,408 4,660,773

schedule ‘f’


c labSndry CreditorsMicro & Small Enterprises Refer Note i -Oters 20,666,615 12,606,066

20,666,615 12,606,066

pvProision for ecise dty on finised goods 10,219,997 -

10,219,997 -

30,886,612 12,606,066






Aal port 200910

127

Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

schedule ‘G’(1)


og sk i Work-in-process - -ii Finised goods 1,850,703 1,850,703

1,850,703 1,850,703

l : cg sk i Work-in-process 912,047 -ii Finised goods 13,460,214 1,850,703

14,372,261 1,850,703

n ia/da sk 12,521,558 -

schedule ‘G’(2)

COST OF MATERIAL

ra maa cOpening Stock 367,804 367,804

Add: Prcases 6,527,000 -Less: Closing Stock 213,185 367,8046,681,619 -

pakg maa & cab 5,806,659 -

12,488,278 -

schedule ‘h’

EMPLOYEES’ REMuNERATION AND BENEFITS

Salary and wages 123,243 86,684Labor and staff welfare epenses 128,562 -

251,805 86,684

schedule ‘i’


Power and fel 182,871 -Repairs & maintenance 3,454,118 118,976Ecise dty on finised goods 10,219,997 -Rent 20,500 -Legal and professional carges 343,299 - Adit Fees 27,575 22,060Rates and taes 13,448,584 12,090,000Freigt, transport carges & oter epenses 1,271,766 -

Selling epenses [Disconts,Sales Promotion & Adertising etc.] 282,000 -Traelling and coneyance epenses 269,820 -Printing and stationery 64,581 18,797Miscellaneos epenses 1,756,910 141,491

31,342,021 12,391,324





128

schedule ‘J” siGnificAnt AccountinG policies & notes on Accounts


Ba paa faa sa:


u ea:

Te preparation of financial statements reqires estimates and assmptions to be made tat affect te reported amont of

assets and liabilities on te date of te financial statements and te reported amont of reenes and epenses dring tereporting period. Difference between te actal reslts and estimates are recognised in te period in wic te reslts areknown/ materialised.

rv rg:

All reene and epenses are acconted for on accral basis. Reene is recognised wen no signif icant ncertainties eist inrelation to te amont of eental receipt.



v iv:

Inentories are stated at te lower of cost and net realisable ale. Cost is determined on te basis of Weigted Aerage

metod.a Raw material, Stores & Components and Work-in-Process are aled at material cost.

b Finised goods are aled at manfactring cost, wic comprise direct material, direct labor, oter direct cost andoter related manfactring oereads. Ecise dty payable on f inised goods stock is added to te cost.

v f A:



Ependitres incrred dring constrction/erection period on project nder implementation are inclded nder“Capital work-in-progress”. Tese epenses are appropriated to fied assets on commencement of commercialprodction.

v da a Aa:

a Depreciation is proided on te “ Written-Down vale Metod” in te manner and at te rates specified in Scedle xIv of te Companies Act, 1956.

b Depreciation is proided on assets acqired dring te year from te date on wic assets were pt to se.

v ia A:








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129

v pv a cg:

Proision is recognised wen tere is a present obligation as a reslt of past eent tat probably reqires an otflow of resorcesand a reliable estimate can be made of te amont of te obligation. A disclosre on contingent liability is made wen tere isa possible obligation or present obligation tat probably will not reqire an ot f low of resorces or were reliable estimate of te amont of te obligation cannot be made. howeer contingent assets are neiter proided for nor disclosed.

taa:

a Proision for Income Ta is determined on te basis of te estimated taable income and amont epected to be paid tote ta atorities in accordance wit te Proisions of te Income Ta Act, 1961.

b Deferred Ta is recognised in respect of deferred ta assets sbject to te consideration of prdence and to te etenttere is irtal certainty tat te asset will be realised in ftre and deferred ta liabilities on timing differences, being

te difference between taable income and acconting income tat originate in one year and are capable of reersal inone or more sbseqent years.

eag p sa:

Basic earnings per sare are calclated by diiding te net profit for te year attribtable to eqity sare olders by te weigtedaerage nmber of eqity sares otstanding dring te period.

2. NOTES ON ACCOuNTS

t g ab a 31 ma, 2010.

ra pa d

Te disclosres pertaining to te related parties as reqired by te Acconting Standard 18 “Related Party Disclosre” issed

by te Institte of Cartered Accontants of India, as applicable, are as nderTilaknagar Indstries Ltd. being holding Company is a related party and details of transactions dring te financial year areas nder

Amont in `

paa 2009-10 2008-09

a Sale/Prcase of goods - -

b Adance receied Net 103,088,776 45,739,007

Te Company as nabsorbed depreciation and carry forward of losses nder Income Ta Laws and ence deferred ta assetsae not been recognised as tere is no irtal certainty spported by conincing eidence tat tere will be sfficient ftretaable income against wic sc deferred ta assets can be realised.

v A’ a ag a

Amont in `

paa 2009-10 2008-09

a Adit Fees 22,060 22,060

b Aditors remneration in oter capacity 5,515 -

27,575 22,060

v Ecise dty payable on finised goods is acconted for on te clearance of te goods from te factory. Sc ecise dty payableon finised goods manfactred bt yet to be cleared from te factory as at 31st Marc, 2010 estimated at ` 10,219,997Preios Year ` Nil as been proided in te books and also considered in alation of closing stock of finised goods.





Aal port 200910

131

Amont in `

2009-10 2008-2009

uom Qa r Qa r

Annexure to schedule ‘J’

1. SALES & SERvICESp

saIndian Made Foreign Liqor - own nit B.L. 243,648 37,645,616 - -

37,645,616 -

2. STOCK OF FINIShED GOODS

og sk pIndian Made Foreign Liqor - own nit B.L. - 1,850,703 - 1,850,703

1,850,703 1,850,703

cg sk pIndian Made Foreign Liqor - own nit B.L. 87,350 13,460,214 - 1,850,703

13,460,214 1,850,703

3. PARTICuLARS OF GOODS MANuFACTuRED uom lcaa

a

iacaa

a

Qa 2009-10

Qa 2008-09

Indian Made Foreign Liqor - own nit B.L. 11,826,000 6,570,000 330,998 -

2009-10 2008-09

uom Qa r Qa r4. RAW MATERIAL CONSuMED

Indstrial Alcool & Oter Spirits B.L. 153,240 6,681,619 - -

6,681,619 -

2009-10 2008-09

uom r % r %5. vALuE OF IMPORTED & INDIGENOuS RAW

MATERIAL & COMPONENTS CONSuMED

i Imported - -ii Indigenos 6,681,619 100 - 100

6,681,619 100 - 100


7. EARNINGS IN FOREIGN ExChANGE - -


9. ExPENDITuRE IN FOREIGN CuRRENCY - -





132

Amont in `

2009-10 2008-09


Net profit before ta & etraordinary items 22,326,785 12,180,446 Adjstment forDepreciation 233,105 263,403Interest net 1,322 -

234,427 263,403Operating Profit before working capital canges Adjstment forIncrease / Decrease in inentory 13,147,450 -Increase / Decrease in trade receiables 15,916,968 -Increase / Decrease in loans and adances 109,059 315,958Decrease / Increase in trade payable and proisions 18,280,546 12,154,865

10,674,813 11,838,907

NET CASh FROM OPERATING ACTIvITIES 32,767,171 78,136


Prcase of fied assets 20,000,000 -

NET CASh FROM INvESTING ACTIvITIES 20,000,000 -

C cAsh flow from finAncinG ActiVitiesProceeds from borrowings 57,349,769 198,686Interest paid 1,322 -

NET CASh FROM FINANCING ACTIvITIES 57,348,447 198,686

NET INCREASE IN CASh & CASh EQuIvALENTS 4,581,276 120,550Opening cas & cas eqialents 511,923 391,373

Closing cas & cas eqialents 5,093,199 511,923






FInAncIAL SAemenS cash Flow Statt ad Bala Sht Abstrat




Aal port 200910

133







Bons Isse N I L Priate Placement N I LEqity Sares


Total Liabilities 1 4 3 1 7 8 Total Assets 1 4 3 1 7 8

SOuRCES OF FuNDS

Paid-p Capital 7 3 0 5 Reseres and Srpls 1 8 9 7

Secred Loans N I L unsecred Loans 1 0 3 0 8 9

Crrent Liabilities 3 0 8 8 7


Net Fied Assets 2 1 9 1 2 Inestment N I L

Crrent Assets 3 8 1 9 7 Miscellaneos Ependitre N I L

Accmlated Losses 8 3 0 6 9


Trnoer* 3 7 9 7 7 Total Ependitre 6 0 3 0 4+ - + -

Profit/Loss Before Ta P 2 2 3 2 7 Profit/Loss After Ta P 2 2 3 2 7

+ -Earning per sare In ` P 3 0 5 . 6 4 Diidend Rate % N I L

Basic


monetAry terms)

Item Code No ITC Code 2 2 0 7 1 0 . 0 1


Item Code No. ITC Code 2 2 0 8 3 0 . 0 0Prodct Description I M F L W h I S K I E S







134


Fiaial Statts

ilakagar Idstris Ltd. cosolidatd


136 BAlAnce sheet


138 schedules

146 notes


174 corporAte informAtion





135

Aal port 200910

o cosolidatd Fiaial StattsTo Te Board of Directors of Tilaknagar Indstries Ltd.

1. We ae adited te attaced Consolidated Balance Seetof Tilaknagar Industries Ltd. “te Company” and itssbsidiaries te Company and its sbsidiaries constitte“te Grop” as at 31st Marc, 2010, te ConsolidatedProfit and Loss Accont and te Consolidated CasFlow Statement of te grop for te year ended on tatdate, bot anneed tereto. Tese financial statementsare te responsibility of te Company’s management andae been prepared on te basis of te separate financial

statements. Or responsibility is to epress an opinionon tese Consolidated Financial Statements based on oradit.

2. We condcted or adit in accordance wit te aditingstandards generally accepted in India. Tese Standardsreqire tat we plan and perform te adit to obtainreasonable assrance abot weter te financialstatements are free of material misstatement. An aditincldes eamining, on a test basis, eidence spportingte amonts and disclosres in te financial statements. Anadit also incldes assessing te acconting principles sedand significant estimates made by te Management, as wellas ealating te oerall financial statement presentation.

We beliee tat or adit proides a reasonable basis foror opinion.

3. We report te Consolidated Financial Statements ae been prepared by te Company in accordance wit tereqirements of Acconting Standards 21 ‘ConsolidatedFinancial Statements’ issed by te Institte of Cartered Accontants of India.

4. Based on or Adit and to te best of or informationand according to te eplanation gien to s, we are of te opinion tat te attaced Consolidated FinancialStatements gie a tre and fair iew in conformity wit teacconting principles generally accepted in India:

i in case of te Consolidated Balance Seet, of te state

of affairs of te Grop as at 31st Marc, 2010;

ii in case of te Consolidated Profit and Loss Accont,of te Consolidated profit of te Grop for te yearended on tat date and;

iii in case of te Consolidated Cas Flow Statement, of tecas flows of te Grop for te year ended on tat date.



Kaushal Mehta

Place : Mmbai PartnerDated : Agst 07, 2010 Membersip No.111749

Aditors’ port



136


cosolidatd Bala Shtas at 31st marh, 2010

Amont in `

s A a

31 ma, 2010 A a

31 ma, 2009

I sources of funds

1. ShAREhOLDERS’ FuNDSa. Sare Capital ‘A’ 323,100,000 139,494,288 b. Sare Warrant ‘A1’ - 70,650,000c. Employee Stock Option Otstanding 2,830,067 -d. Reseres & Srpls ‘B’ 1,700,842,833 1,215,077,909

2,026,772,900 1,425,222,1972. LOAN FuNDS

a. Secred Loans ‘C’ 2,721,173,746 1,167,683,965 b. unsecred Loans ‘D’ 1,813,531,082 83,633,054


6,681,025,185 2,738,898,159


1. GOODWILL 38,919,654 38,919,654

2. FIxED ASSETS ‘E’

a. Gross Block 2,351,373,050 1,549,157,483 b. Less: Depreciation 280,999,640 181,076,864c. Net Block 2,070,373,410 1,368,080,619

Add : Capital Work-In-Progress 1,637,406,189 390,951,9543,707,779,599 1,759,032,573

d. Less: Impairment of assets 1,704,564 1,704,5643,706,075,035 1,757,328,009

3. INvESTMENTS ‘F’ 2,877,220 346,220

4. CuRRENT ASSETS, LOANS & ADvANCES ‘G’ 4,080,213,574 1,916,949,138LESS: CuRRENT LIABILITIES & PROvISIONS ‘h’ 1,147,060,298 974,696,722NET CuRRENT ASSETS 2,933,153,276 942,252,416

5. MISCELLANEOuS ExPENDITuRE ‘h1’ - 51,860To te etend not adjsted or written off

6,681,025,185 2,738,898,159










137

Aal port 200910

or th ar dd 31st marh, 2010

Amont in `

sf a

31 ma, 2010f a

31 ma, 2009

I income

Sales Refer Annere to Scedle L ‘I’1 5,497,992,588 4,050,750,275Less: Ecise dty 1,635,918,753 1,558,658,818

3,862,073,835 2,492,091,457

Oter Income ‘I’2 44,190,800 28,642,7393,906,264,635 2,520,734,196

II expenditure

Increase / Decrease in stock ‘I’3 189,412,341 153,403,766Cost of material ‘I’4 1,700,555,461 1,129,783,792Employees’ remneration and benefits ‘J’ 201,296,556 200,527,430Manfactring and oter epenses ‘K’ 1,348,131,560 887,745,415Finance cost 235,841,427 107,097,969Preliminary & Pre-operatie epenses written off 51,860 51,860Depreciation / Amortisation 71,268,636 32,760,485

3,367,733,159 2,204,563,185

Profit for te year 538,531,476 316,171,011Less: Prior Period Adjstments - 105,678Profit before taation 538,531,476 316,065,333Less: Proision for taation

Crrent years’ 132,450,000 87,500,000Preios years’ - 3,944,203Fringe Benefit Ta - 1,858,602Deferred Ta 57,188,514 24,967,302

189,638,514 118,270,107

Profit after taation 348,892,962 197,795,226

Add: Balance brogt forward from preios years 327,273,718 167,881,772 Amont aailable for appropriations 676,166,680 365,676,998

III AppropriAtions

Transferred to General Resere 33,500,000 21,500,000Proposed diidend 88,659,473 14,447,865Diidend distribtion ta inclding srcarge & cess 15,072,110 2,455,415Balance transferred to Balance Seet 538,935,097 327,273,718

676,166,680 365,676,998Earnings Per Sare ` Basic 17.23 11.51

Dilted 16.84 10.95Refer Note i of Scedle ‘L’Significant acconting policies & Notes on acconts ‘L’

cosolidatd Proft ad Loss Aot







138



Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘A’

ShARE CAPITAL

A50,000,000 eqity sares of ` 10/- eac 500,000,000 300,000,000P.Y. 30,000,000 eqity sares of ` 10/- eac900,000 Complsorily Conertible Cmlatie Preference Sares CCPS of ̀ 94/- eac 84,600,000 84,600,000

P.Y. 900,000 CCPS of ` 94/- eac

i, sbb A pa u32,310,000 eqity sares of ` 10/- eac flly paid p 323,100,000 57,250,680P.Y. 5,725,068 eqity sares of ` 10/- eac

Of te aboe sares :-a 21,842,675 eqity sares of `10/- eac flly paid-p

bons sares by capitalisation of reseres.b 1,237,500 eqity sares of `10/- eac were allotted as

flly paid-p prsant to a sceme of amalgamation.c 44,696 eqity Sares of `10/- eac were allotted for

consideration oter tan cas.

Nil P.Y. 874,93212% Complsorily Conertible Cmlatie - 82,243,608Preference Sares CCPS of ` 94/- eac flly paid p

323,100,000 139,494,288

schedule ‘A’(1)

ShARE WARRANT

Nil P.Y. 4,500,000 of ` 157/- eac -10% paid p - 70,650,000

- 70,650,000

schedule ‘B’

RESERvES & SuRPLuS

1. sa p A As per last Balance Seet 20,957,443 20,957,443 Add : Additions dring te year 415,434,288 -Less : utilised for isse of bons sares 215,400,000 -

220,991,731 20,957,443

2. Ga rv

As per last Balance Seet 72,160,572 50,660,572Transfer from Profit & Loss accont 33,500,000 21,500,000

105,660,572 72,160,572





139

Aal port 200910


Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘B’ (contd.)

3. caa rv 72,547,150 1,897,150

4. rvaa rv 792,789,026 822,869,769Less : Amortised 30,080,743 30,080,743

762,708,283 792,789,026

5. p & l A 538,935,097 327,273,718

1,700,842,833 1,215,077,909

schedule ‘c’

SECuRED LOANS

1. lg t lat laFrom Banks 1,466,256,314 413,200,000

Against first carge on te fied assets of te Company sitated at Srirampr, Dist.Amednagar and second cargeon crrent assets.

2. s t laca c g kg aa a a 1,238,268,423 748,160,609

Against ypotecation of stock of raw material, work-in-process, finised goods, stores, cemicals & book debts and second carge on te fied assets of te Company sitated at Srirampr, Dist. Amednagar

hire prcase car loan wit Banker's lien on cars 16,649,009 6,323,356

2,721,173,746 1,167,683,965

schedule ‘d’

uNSECuRED LOANS

1. Fied deposits - Sareolders & Oters - 608,0002. unsecred Loans

From Banks 1,663,531,082 49,958,582From Promoters & Oters 150,000,000 33,066,472

1,813,531,082 83,633,054



140


S C h E D

u L E ‘ E ’

( A m o n t i n ` )


G R O S S B L O C K

D E P R E C I A T I O N / A M O R T I S A T I O N

N E T B L O C K

A a

1 A ,

2 0 0 9

A n d

n r v a a n

A a

3 1 m a ,

2 0 1 0

A a

1

A ,

2 0 0 9

d n

f

a

o n

r v a a n

A a

3 1 m a ,

2 0 1 0

A a

3 1 m a ,

2 0 1 0

A a

3 1 m a ,

2 0 0 9

t a n g b A

L a n d

5 4 0 , 5

2 1 , 7

6 5

-

-

-

5 4 0 , 5

2 1 , 7 6 5

-

-

-

-

-

5 4 0 , 5

2 1 , 7 6 5

5 4 0 , 5

2 1 , 7

6 5

B i l d i n g s

2 3 2 , 6

9 3 , 7 4 2

2 4 , 5 9 6 , 2 4 0

-

-

2 5 7 , 2 8 9 , 9 8 2

3 8 , 7 7

0 , 7

2 4

-

6 , 3

6 4 , 6

5 4

1 0 , 4 7 8 , 3

6 0

5 5 , 6

1 3 , 7

3 8

2 0 1 , 6 7 6 , 2

4 4

1 9 3 , 9 2 3 , 0 1 8

P l a n t & M

a c i n e r y

6 7 6 , 3 0 7 , 2

4 3

7 1 4 , 1

1 4 , 5

0 0

-

- 1 , 3

9 0 , 4

2 1 , 7

4 3 1

0 8 , 9 4

2 , 4

7 2

- 3 5 , 5

3 9 , 6

9 6

1 9 , 6

0 2 , 3

8 3 1

6 4 , 0

8 4 , 5

5 1 1 , 2

2 6 , 3

3 7 , 1

9 2

5 6 7 , 3 6 4 , 7

7 1

F r n i t r e

& F i t r e s

1 9 , 2

3 6 , 0

3 3

2 3 , 0

7 2 , 0

5 7

-

-

4 2 , 3

0 8 , 0

9 0

7 , 8 6

7 , 7 5 3

-

4 , 3

4 0 , 7

6 4

-

1 2 , 2

0 8 , 5

1 7

3 0 , 0

9 9 , 5

7 3

1 1 , 3

6 8 , 2

8 0

C o m p t e r s

2 8 , 9

3 7 , 4

6 3

1 8 , 9

8 0 , 9

8 2

-

-

4 7 , 9

1 8 , 4

4 5

4 , 7 8

2 , 2 0 2

- 1 5 , 3

6 7 , 7

1 6

-

2 0 , 1

4 9 , 9

1 8

2 7 , 7

6 8 , 5

2 7

2 4 , 1

5 5 , 2

6 1

E l e c t r i c a l

I n s t a l l a t i o n

& F i t t i n g s

6 , 5

0 3 , 5

8 2

4 2 3 , 4

5 8

-

-

6 , 9

2 7 , 0

4 0

1 , 9 0

4 , 6

9 4

-

6 3 3 , 4

7 7

-

2 , 5

3 8 , 1

7 1

4 , 3

8 8 , 8

6 9

4 , 5

9 8 , 8

8 8

M o t o r C a

r a n d

2 4 , 8

0 8 , 7

4 7

2 3 , 1

4 3 , 4

7 4

2 , 1

1 5 , 1

4 4

-

4 5 , 8

3 7 , 0

7 7

9 , 3 9

2 , 4

3 9

1 , 4

2 6 , 6

0 3

7 , 0

8 1 , 8 9 1

-

1 5 , 0

4 7 , 7

2 7

3 0 , 7

8 9 , 3

5 0

1 5 , 4

1 6 , 3

0 8

T r a n s p o r t v e i c l e s

R o a d s & B r i d g e s

2 , 7

0 2 , 0

3 8

-

-

-

2 , 7

0 2 , 0

3 8

6 9

1 , 7

5 8

-

2 0 1 , 0

2 8

-

8 9 2 , 7 8 6

1 , 8

0 9 , 2

5 2

2 , 0

1 0 , 2

8 0

L i b r a r y B o o k s

2 7 , 7

7 3

-

-

-

2 7 , 7

7 3

2

7 , 7

7 3

-

-

2 7 , 7

7 3

-

-

L i e S t o c k

2 5 , 0 0 0

-

-

-

2 5 , 0 0 0

-

-

-

-

2 5 , 0

0 0

2 5 , 0 0 0

i n a n g b

A

P r o d c t D

e e l o p m e n t

1 7 , 3

9 4 , 0

9 7

-

-

1 7 , 3

9 4 , 0 9 7

8 , 6 9

7 , 0

4 9

1 , 7

3 9 , 4

1 0

1 0 , 4 3 6 , 4

5 9

6 , 9

5 7 , 6 3 8

8 , 6

9 7 , 0

4 8

1 , 5

4 9 , 1

5 7 , 4

8 3

8 0 4 , 3

3 0 , 7

1 1

2 , 1

1 5 , 1

4 4

- 2 , 3

5 1 , 3

7 3 , 0

5 0

1 8 1 , 0 7

6 , 8

6 4

1 , 4

2 6 , 6

0 3

7 1 , 2

6 8 , 6

3 6

3 0 , 0

8 0 , 7

4 3 2 8 0 , 9

9 9 , 6

4 0

2 , 0

7 0 , 3

7 3 , 4

1 0

1 , 3

6 8 , 0

8 0 , 6

1 9

c a a w i p

3 9 0 , 9

5 1 , 9

5 4 1 , 2

4 6 , 4

5 4 , 2

3 5

1 , 6

3 7 , 4

0 6 , 1 8 9

1 , 6

3 7 , 4

0 6 , 1

8 9

3 9 0 , 9

5 1 , 9

5 4

G r a n d T o

t a l

1 , 9

4 0 , 1

0 9 , 4

3 7

2 , 0

5 0 , 7

8 4 , 9

4 6

2 , 1

1 5 , 1

4 4

- 3 , 9

8 8 , 7

7 9 , 2

3 9

1 8 1 , 0 7

6 , 8

6 4

1 , 4

2 6 , 6

0 3

7 1 , 2

6 8 , 6

3 6

3 0 , 0

8 0 , 7

4 3 2

8 0 , 9

9 9 , 6

4 0

3 , 7

0 7 , 7

7 9 , 5

9 9

1 , 7

5 9 , 0

3 2 , 5

7 3

P r e i o s Y e a r

1 , 3

2 5 , 7

9 6 , 0

1 0

6 1 5 , 0

5 9 , 4 1 4

7 4 5 , 9

8 7

- 1 , 9

4 0 , 1

0 9 , 4 3 7

1 1 8 , 3 9

8 , 8

4 9

1 6 3 , 2

1 3

3 2 , 7

6 0 , 4

8 5

3 0 , 0 8 0 , 7 4 3 1

8 1 , 0

7 6 , 8

6 4

1 , 7

5 9 , 0 3 2 , 5 7 3






141

Aal port 200910

Amont in `

sa/u

A a31 ma, 2010

A a31 ma, 2009

SChEDuLE ‘F’

INvESTMENTS

lg t1. Gv s : uq

7 Year National Saings Certificates of face ale of ` 51,400/- Certificates wort ` 44,000/- deposited wit Goernment atorities

51,400 51,400

6 Year National Saings Certificates Deposited witGoernment atorities 4,250 4,250

55,650 55,650

2. sa J sk ca, .uqMla Praara Electric Co-operatie Society Ltd. Eqity 253,070 252,070Sree Sarna Saakari Bank Ltd. Eqity 2,000 2,000Maarastra State Financial Corporation Eqity 11,500 11,500Rpee Co-op Bank Ltd. Eqity 25,000 25,000Samrao vital Co-operatie Bank Ltd. Eqity 30,000 -

321,570 290,570c

iv a uqMontly Income Plan units 122,880.315 2,500,000 -

2,877,220 346,220

Aggga q v - Aggga q v a 2,877,220 346,220




142


Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘G’


c AInentory at cost

Raw material 218,387,448 84,014,231Stores, components 194,410,194 262,479,353 Work-in-process 230,790,720 34,941,699Stock-in-trade 199,671,668 206,108,348Stock-in-transit - 3,970,555

843,260,030 591,514,186

s db a Debtors otstanding eceeding si montsConsidered good - 84,167,548Considered dobtfl 13,327,176 -

13,327,176 84,167,548b Oter debts 806,626,009 569,847,772

819,953,185 654,015,320

ca a bak baaCas and ceqes on and 166,571,639 13,853,167In Crrent Acconts wit Scedled Banks 18,443,820 4,974,456In Fied Deposits wit Scedled Banks 80,664,607 29,234,877

265,680,066 48,062,500la & Ava

unsecred considered good Adances recoerable in cas or in kind or for ale to be receied 697,685,854 231,534,862 Adance wit tie p nits 1,196,862,983 205,918,192Balance wit Ecise Atorities 12,802,607 12,874,620Deposit wit Cort 39,676,366 39,650,161

Oter Deposits 204,292,483 133,379,297

2,151,320,293 623,357,132

4,080,213,574 1,916,949,138






143

Aal port 200910

Amont in `

A a31 ma, 2010

A a31 ma, 2009

schedule ‘h’


c labSndry CreditorsMicro & Small Enterprises Refer Note - -Oters 491,747,425 518,084,132unclaimed diidends 970,639 793,918unclaimed Deposits 16,000 814,000Trade Deposits unsecred, interest free 394,656,497 277,756,297

887,390,561 797,448,347pv

Proision for Taation 71,217,471 52,547,884Proposed Diidend 88,659,473 14,447,865Diidend Ta 15,072,110 2,455,415Proision for Gratity 2,796,594 21,049,446Proision for leae encasment 8,900,965 7,596,590Oter Proisions 73,023,124 79,151,175

259,669,737 177,248,375

1,147,060,298 974,696,722

schedule ‘h’(1)

MISCELLANEOuS ExPENDITuRE

Deferred Reene Ependitre As per last Balance Seet 51,860 103,720Less: Written off dring te year 51,860 51,860

- 51,860




144


Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

schedule ‘i’(1)

SALES

Sales of prodcts 4,416,577,056 3,767,442,183Income from tie-p nits 1,063,371,976 268,785,521Oter operating income 18,043,556 14,522,571

5,497,992,588 4,050,750,275

schedule ‘i’(2)

OThER INCOME

Dty drawback on eports 4,295,353 3,070,320Miscellaneos receipts 16,457,129 20,673,281Sndry balances written back 22,093,586 3,354,462Interest income 2,886,899 1,456,531Gain/ Loss on ecange flctation 1,542,167 88,145

44,190,800 28,642,739

schedule ‘i’(3)


og sk i Work-in-process 34,941,699 7,833,137ii Finised goods 206,108,348 79,813,144

241,050,047 87,646,281l : cg sk i Work-in-process 230,790,720 34,941,699ii Finised goods 199,671,668 206,108,348

430,462,388 241,050,047

n ia/da sk (189,412,341) (153,403,766)

schedule ‘i’(4)

COST OF MATERIAL

ra maa cOpening Stock 84,014,231 32,659,786 Add: Prcases 850,608,975 617,750,969Less: Closing Stock 218,387,448 84,014,231

716,235,758 566,396,524

pakg maa & cab 984,319,703 563,387,268

1,700,555,461 1,129,783,792






145

Aal port 200910

Amont in `

f a 31 ma, 2010

f a 31 ma, 2009

schedule ‘J’

EMPLOYEES' REMuNERATION & BENEFITS

Salary and wages 158,939,507 167,117,862Contribtion to proident fnd and family pension fnd 13,500,799 10,155,675Labor and staff welfare epenses 26,059,656 12,097,995

Gratity 2,796,594 11,155,898

201,296,556 200,527,430

schedule ‘K’

MANuFACTuRING AND OThER ExPENSESPower and fel 22,729,318 24,633,425Proision for ecise dty on finised goods Refer Note ii 6,128,051 40,420,885Repairs & maintenance 29,986,440 30,338,808Insrance 7,197,112 6,352,108Rent 60,137,444 131,581,003Conersion cost 329,973,661 51,685,919

Legal and professional carges 35,036,635 32,661,618 Aditors Remneration 548,078 362,809Rates and taes 52,191,221 62,321,365Sales ta 35,817,004 18,184,644Freigt, transport carges & oter epenses 86,628,569 82,055,368Selling epenses [Disconts,Sales Promotion & Adertising etc.] 487,788,859 325,270,450Traelling and coneyance epenses 20,313,174 10,667,847Printing and stationery 5,596,886 3,797,298Commnication epenses 12,905,103 7,110,324 veicle rnning epenses 3,831,557 2,943,370Loss on sale of assets 123,542 215,642Commission to Independent Directors 4,788,122 3,286,254Director sitting fees 280,000 300,000

Miscellaneos epenses 158,386,886 53,556,278

1,348,131,560 887,745,415




146


SChEDuLE ‘L” SIGNIFICANT ACCOuNTING POLICIES & NOTES ON ACCOuNTS

1. PRINCIPLES OF CONSOLIDATION

Te consolidated financial statements relate to Tilaknagar Indstries Ltd. te Company and its wolly owned sbsidiary companies iz.: Prag Distillery P Ltd. and Srya Organic Cemicals P Ltd. Te consolidated financial statements ae been prepared on te following basis.

a Te financial statements of te Company and its sbsidiary companies are combined on a line-by-line basis by addingtogeter te book ale of like assets , liabilities , income and epenses, after flly eliminating intra- grop balancesand intra grop transactions reslting in nrealized profits or losses in accordance wit Acconting Standard AS 21-“Consolidated financial statements” notif ied Companies Acconting Standards Rles 2006

b Te difference between te cost of inestment in te sbsidiaries and te Company’s sare of net assets at te time of acqisition of sares in te sbsidiaries is recognized in te financial statements as Goodwill or Capital Resere as tecase may be.

Te financial statements of te Sbsidiaries are drawn pto te same reporting date as tat of te Company i.e.31st Marc, 2010 and as far as possible, te consolidated financial statements are prepared sing niform accontingpolicies for like transactions and oter eents in similar circmstances and are presented in te same manner as teCompany’s separate financial statements.

Inestments oter tan in sbsidiaries ae been acconted as per Acconting Standard AS-13 on “Acconting forInestments” notified Companies Acconting Standards Rles 2006


Ba paa faa sa:Te financial statements ae been prepared sing istorical cost conention and on te basis of going concern in accordance wit generally accepted acconting principles in India, Acconting Standards notified nder Section 2113C of teCompanies Act, 1956 and oter releant proisions of te Companies Act, 1956.

u ea:

Te preparation of financial statements reqires estimates and assmptions to be made tat affect te reported amont of assets and liabilities on te date of te financial statements and te reported amont of reenes and epenses dring tereporting period. Difference between te actal reslts and estimates are recognized in te period in wic te reslts areknown/ materialized.

rv rg:

All reene and epenses are acconted for on accral basis. Reene is recognized wen no significant ncertainties e ist in

relation to te amont of eental receipt.a Sales are recognized on dispatc of goods to cstomers and are inclsie of central / state ecise dty.


v iv:

Inentories are stated at te lower of cost and net realizable ale. Cost is determined on te basis of Weigted Aerage metod.


b Finised goods aled at manfactring cost wic comprise direct material, direct labor, oter direct cost and oterrelated manfactring oereads. Ecise dty payable on finised goods stock is added to te cost.

v f A:

a Fied assets are stated at teir original cost of acqisition /installation, net of accmlated depreciation, amortisation

and impairment losses.b Capital work-in-progress is stated at te amont incrred p to te date of te Balance Seet.

Ependitre incrred dring constrction/erection period Inclding finance cost relating to borrowed fnds for






147

Aal port 200910

constrction or acqisition of fied assets on project nder implementation are inclded nder “Capital work-in-progress”. Tese epenses are appropriated to fied assets on commencement of commercial prodction.

Fied assets prcased nder hire prcase arrangements, incldes ependitre incrred till te assets are pt to se.

Intangible assets are stated at cost of acqisition less accmlated amortisation.

v da a Aa:

a Depreciation is proided on te “Written Down vale Metod” or “Straigt Line Metod” in te manner and at terates specified in Scedle xIv of te Companies Act, 1956 as specified in te acconting policies of te respectieCompany’s standalone financial statements.

v ia A:

Impairment loss is recognized wereer te carrying amont of an asset is in ecess of its recoerable amont and te sameis recognized as an epense in te statement of Profit and Loss and te carrying amont of te said asset is redced to itsrecoerable amont.

Reersal of impairment losses recognized in prior years is recorded wen tere is an indication tat te impairment lossesrecognized for te asset no longer eist or ae decreased.

v iv:


b Crrent Inestments are sown at cost / fair ale wiceer is lower.

fg c cv:

Foreign crrency transactions are recorded at te rate of ecange preailing on te date of transaction. Foreign crrency denominated monetary items as at te Balance Seet date are translated at te rate preailing on te date of Balance Seet.Ecange rate difference arising on te settlement of monetary items inclding year end translations are recognized in teProfit & Loss accont.

pv a cg:

Proision is recognized wen tere is a present obligation as a reslt of past eent tat probably reqires an otflow of resorcesand a reliable estimate can be made of te amont of obligation. A disclosre on contingent liability is made wen tere is apossible obligation or present obligation tat probably will not reqire an ot flow of resorces or were reliable estimate of te amont of te obligation cannot be made. howeer contingent assets are neiter proided for nor disclosed.

ra a dv:

Reene ependitre on Researc and Deelopment is carged to te profit & loss of te year in w ic it is incrred.

Ependitre incrred on deelopment of new prodct / brand is amortised oer a period of 10 years taking into considerationits anticipated ftre benefits.

Bg c:

Borrowing costs attribted to te acqisition of fied assets are capitalized as a part of te cost of asset pto te date te asset ispt to se. Oter Borrowing costs are carged to te Profit & Loss Accont in te year in wic tese are incrred.

e B:

a d cb pa:

Employee benefits in te form of contribtion to Proident Fnd managed by Goernment Atorities, EmployeesState Insrance Corporation and Labor Welfare Fnd are considered as defined contribtion plan and te same iscarged to te Profit & Loss Accont of te year wen te contribtion to te respectie fnds are de.

b d B pa:

Retirement benefits in te form of gratity etc. are considered as defined benefit obligations and are proided at tepresent ale of te amonts payable as on tat date of te Balance Seet, determined by sing actarial alationtecniqes. Actarial gains /losses, if any, are recognized in te Profit & Loss Accont.




148


lav ea.

Liability on accont of te n-aailed earned leae as been proided at te year end on actal basis.

v e sk ca c:

Te Company measres compensation cost relating to employee stock option sing te ‘intrinsic ale metod’.Compensation cost for stock option represent te ecess of te market price oer te eercise price of te sares granted nder“Employee Stock Option Sceme” is amortised in accordance wit gidelines issed by Secrities and Ecange Board of India SEBI, in tis regard.

v taa:

a Proision for Income Ta is determined on te basis of te estimated taable income and amont epected to be paid to

te ta atorities in accordance wit te proisions of te Income Ta Act, 1961.b Deferred Ta is recognized in respect of deferred ta assets sbject to te consideration of prdence and to te etent

tere is irtal certainty tat te asset will be realized in ftre and deferred ta liabilities on timing differences, beingte difference between taable income and acconting income tat originate in one year and are capable of reersal insbseqent years.

v eag p sa:

Basic earnings per sare are calclated by diiding te net profit for te year attribtable to eqity sare olders by te weigted aerage nmber of eqity sares otstanding dring te period.

For te prpose of calclating te dilted earnings per sare te net profit for te year attribtable to eqity sare olders by te weigted aerage nmber of eqity sares otstanding dring te period are adjsted for te ef fects of all diltie potentialeqity sares.

3. NOTES ON ACCOuNTS cg ab v :

Amont in `

paa A a

31 ma, 2010 A a

31 ma, 2009

a Corporate garantees issed to banks on bealf of Sbsidiary Company 250,000,000 Nilb Bank garantees issed on bealf of te Company 51,766,600 6,200,000c In respect of dispted sales ta matter, pending before te sales ta tribnal,

contested by te Company Nil 1,340,750

d In respect of dispted income ta matters, pending before te appropriate Incometa atorities, contested by te Company

For A.Y. 2007-0886,069,844 NilFor A.Y. 2004-05 22,267,678 Nil

For A.Y. 1992-93 Nil 1,000,000e In respect of dispted serice ta matter pending before te appropriate Central

Ecise atorities, contested by te Company 2,017,760 Nil

f Dispted matter nder arbitration pending disposal 20,137,685 20,137,685

Estimated amont of contracts remaining to be eected on capital acconts and not proided for is appro ` 607.87 millionnet of adances preios year ` 90 million

fa :

Amont in `

paa 2009-10 2008-09a Interest on term loans 78,434,625 5,972,838b Interest on cas credits / Working capital demand loan 122,230,432 81,736,706c Oters 35,176,370 19,388,425

235,841,427 107,097,969






149

Aal port 200910

v Te Company as taken Bottling nits on operating lease at arios locations and dring te financial year ` 20.97 millionpaid towards lease rentals as been carged to Profit & Loss Accont.

v t Ag saa 15 “e B” a :

d cb pa

Te Company as carged in te Profit & Loss Accont dring te financial year an amont of ` 13.50 million nder definedcontribtion plan as employer’s contribtion to Proident Fnd.

d B pa

Te Employees’ gratity fnd sceme managed by LIC is a defined benefit plan. Te present ale of obligation is determined based on actarial alation sing te Projected unit Credit Metod, wic recognizes eac period of serice as giing rise

to additional nit of employee benefit entitlement and measres eac nit separately to bild p te final obligation. Teobligation for leae encasment is recognized in te manner as gratity.

Te net ale of te defined commitment is detailed below:

Amont in `fGa

n flav

Present vale of Commitments 10,870,914Fair vale of Plans 8,074,320Net Liability in te Balance Seet 2,796,594 8,900,965

d b cOpening balance as at 1st April, 2009 21,049,446Crrent Serice Cost 2,645,682Interest epenses 1,895,610Paid benefits - Actarialgain/loss 14,719,824Transfer receied -Closing balance as at 31st Marc, 2010 10,870,914

pa AOpening balance as at 1st April, 2009 7,431,496Epected retrn on sceme assets 594,520Contribtions by te Company -Paid Fnds - Actarial gain/loss 48,304Transfer Receied -Closing balance as at 31st Marc, 2010 8,074,320

r a AEpected retrn on plan assets 594,520 Actarial gain/loss 48,304

Actal Retrn on plan Assets 642,824

e b aCrrent serice costs 2,645,682Past serice cost -Interest epense 1,895,610Epected retrn on inestment 594,520Net actarialgain/loss 14,768,128Epenses carged to Profit and Loss Accont 10,821,356

%iv da Inested

A a31 ma, 2010

Fnds Managed by Insrer 100

Pblic Sector unit Bonds -State/Central Garanteed secrities -Special deposit scemes -Oter eclding bank balances -

100




150


Aaa a Ga Mortality LIC 1994-96 ultimateDiscont rate per annm 8.25%Epected rate of retrn on plan assets per annm 8.00%Rate of escalation in salary per annm 5.00%

v e sk o s

a Te Sareolders of te Company at te Annal General Meeting eld on 6t Agst, 2008 approed Employee Stock Option Sceme ESOP 2008.

b Dring te year ended 31st Marc, 2010 te following sceme was in operation:

Amont in `

paa Ga 1 Ga 2

Date of Grant 2nd Jly, 2009 28t Janary, 2010

Date of te Board Approal 2nd Jly, 2009 28t Janary, 2010

Date of te Sareolders Approal 6t Agst, 2008 6t Agst, 2008

Nmber of options granted **273,000 1,444,521

vesting period from te date of grant 4 years 4 years

Eercise period from te date of esting 2 years 2 years

** Post adjstment of Bons in te ratio of 2:1 sares and net of cancellation and re-isse of stock option dring te

financial year.

Te details of te options as on 31st Marc, 2010 are as nder:

Amont in `

paa A a

31 ma, 2010 A a

31 ma, 2009

Options otstanding at te beginning of te year Nil Nil

Options granted dring te year** 1,717,521 Nil

Options cancelled dring te year Nil Nil

Options otstanding at te end of te year** 1,717,521 Nil

** Net of cancellation and re-isse of stock option dring te financial year.

Te weigted aerage fair ale of stock options granted dring te financial year was ` 5,573,552 Preios Year`Nil. Te Black Scoles alation model as been sed for compting te weigted aerage fair ale considering tefollowing inpts:

Amont in `

paa Ga 1 Ga 2

Dates of Grant 2nd Jly, 2009 1st Janary, 2010

Market Price ` per sare on te dates of grant 143.45 99.45

volatility 71.49% 68.67%

Risk free rate 6.24% 6.76%

Eercise price 120 75

Time to matrity years 5 5

Diidend yield 2% 2%Option fair ale ` per sare 66.80 49.11






151

Aal port 200910

Since te Company, sed te intrinsic ale metod, te impact on te reported net profit and earnings per sare by applying te fair ale metod is as nder

Amont in `

paa A a

31 ma, 2010 A a

31 ma, 2009

Net Profit as Reported aailable to Eqity Sare olders 339,668,129 197,637,055

Add: Employee stock compensation nder intrinsic ale 2,830,067 Nil

Less: Employee stock compensation nder fair ale metod 5,573,552 Nil

Adjsted Net Profit 336,924,644 197,637,055

Earnings Per Sare

Basic:-As reported 17.23 11.51

-Adjsted 17.09 11.51

Dilted:


-Adjsted 16.70 10.95

v sg rg:

Te Company is predominantly engaged in te bsiness of manfactre and sale of Indian Made Foreign Liqor and its relatedprodcts wic constitte a single bsiness segment.

v ra pa d:

Te disclosres pertaining to te related parties as reqired by te Acconting Standard 18 “Related Party Disclosre” issed by te Institte of Cartered Accontants of India, as applicable, are as nder:

a l ra a a a

s.n.

na a a ra

1. Prag Distillery P Ltd. Sbsidiary Company

2. Srya Organic Cemicals P Ltd. Sbsidiary Company

3. Mr. Amit Daankar Key Managerial Personnel Cairman & Managing Director

4. Mrs. Siani Amit Daankar Key Managerial Personnel Eectie Director

5. M. L. Daankar & Co. Pt. Ltd. Company in wic Key Managerial Personnel as sbstantial interest

6. Arnoday Inestments Pt. Ltd. Company in wic Key Managerial Personnel as sbstantial interest

7. Dr. Priyadarsini A. Daankar Relatie of Key Managerial Personnel

b taa g aa a a a:

Amont in `

s.n

na taa

sba ca

K maaga

ca baa

i

rav K

maagap

1. Payment to Key Managerial Personnel - 47,881,221 -

2. Loans taken - - 150,000,000 -

3. Rent 2,454,000 720,000 685,200

4. Otstanding:

Payable - - 150,000,000 -




152


t bak- a a a 31 ma, 2010 a :

Amont in `

paa

d ta ab a a

31 ma, 2010

Deferred Ta liability as at 1st April, 2009 62,358,943 Add: Deferred Ta Assets /Liability dring te year on accont of difference in depreciation & Oters 57,188,514

Deferred Ta liability as on 31st Marc, 2010 119,547,457

maaga ra:

Details of te Managerial Remneration paid or proided dring te financial year ended on 31st Marc, 2010Amont in `

paa 2009-10 2008-09

Remneration to Managing Director and Wole Time Directors

- Salaries and Contribtion to fnds 31,753,380 26,564,246

- vale of perqisites - -

- Commission 16,127,841 6,298,292

47,881,221 32,862,538

Remneration to Non-eectie and Independent Directors

- Commission 4,788,122 3,286,254

Note: Te aboe amonts do not inclde contribtion to Gratity Fnd, as separate amont is not aailable for Managing

Director and Wole Time Directors.

A’ a ag a:

Amont in `

paa 2009-10 2008-09

a Adit Fees 446,715 258,746

b Aditors remneration in oter capacity 101,363 104,063

548,078 362,809

Proision for ecise dty on finised goods manfactred bt yet to be cleared from te factory as at 31st Marc, 2010estimated at ` 73,023,124 Preios Year ` 79,151,175 as been proided in te books and also considered in alation of closing stock of finised goods. Proision for ecise dty on finised goods carged in te Profit and Loss Accont for te

financial year is as follows :-

Amont in `

paa 2009-10 2008-09

Proision for ecise dty on f inised goods at te beginning of te year 79,151,175 38,730,290

Proision for ecise dty on finised goods at te end of te year 73,023,124 79,151,175

Proision for ecise dty on finised goods carged in te Profit and Loss Accont 6,128,051 40,420,885

Tere are no amonts otstanding in respect of npaid diidend / fied deposits for more tan seen years to be transferredto Inestor Edcation & Protection Fnd.

v Te amont of secred and nsecred loans from banks otstanding at te end te f inancial year as been garanteed by tepersonal garantee of Cairman & Managing Director of te Company.







153

Aal port 200910

v eag p sa:

Amont in `

paa 2009-10 2008-09

Profit After Ta 348,892,962 197,795,226

Less : Diidend on Preference Sares & Ta tereon 9,224,833 158,171

Profit after Ta and after Preference Diidend 339,668,129 197,637,055

Weigted aerage nmber of sares 19,717,994 17,175,204

Basic Earnings Per Sare 17.23 11.51 Weigted aerage nmber of sares adjsted for te effects of diltie potentialeqity sares

20,171,511 18,050,136

Dilted Earnings Per Sare 16.84 10.95

Face vale per Eqity Sare 10 10

v o sga :

a Te Company’s glass manfactring nit was gien to Ramnat Glass Containers Pt. Ltd RGCPL managed by MetaBroters on lease for carrying ot teir bsiness, wic ad discontined te operations in te year 2003 and andedoer te nit back to te Company in totally nworkable conditions witot flfilling teir legal obligations nder teagreement. De to tis te Company ad to pay te stattory liabilities and settle te des of te workmen on bealf of RGCPL / Meta Broters. Te Company as initiated te legal action against te RGCPL / Meta Broters for recoery of amont paid togeter wit interest and damages amonting to ` 76.2 million.

b Te Company’s distribtor Ding Dong Liqors as filed a winding p petition on te Company in te hig Cort of

Jdicatre of Bombay for recoery of Secrity Deposit of ` 25 million. Te Company witeld te Secrity Deposit onte gronds tat Ding Dong Liqors ad failed to delier te ‘C’ forms and oter amonts de to te Company. Tehon’ble hig Cort ide its Order directed te Company to deposit a sm of ` 12.70 million ot of te total amontclaimed by Ding Dong Liqors. Te Company as deposited te aboe sm wit te Cort and f iled an appeal againstte said Order.

Frter, te Company as filed a separate sit for recoery of des of ` 39 million and ‘C’ forms against Ding DongLiqors.

Anpama Wine Distribtors as filed a sit before te City Ciil Cort, Bangalore claiming ` 73.11 million towardsrefnd of secrity deposit and oter des. Te hon’ble Cort ide its Order dated 22nd December, 2007 dismissedteir application for attacment of property for recoery of te aboe des. Te Company as filed a conter claim for` 119.30 million against Anpama Wine Distribtors and te matter is pending before City Ciil Cort, Bangalore.

Anpama Wine Distribtor as filed a Company petition against te Company before Bombay hig Cort and againsttat te hon’ble Bombay hig Cort as ide Order dated 16t Marc, 2009 directed to te Company to Deposit a sm

of ` 42.10 million. Te Company as deposited a bank garantee wort te said amont wit te hig Cort, Mmbaiand as filed an appeal against te said Order.

v Additional information prsant to te proisions of paragrap 3, 4 c & d of part II of Scedle vI of Companies Act,1956, is anneed ereto

Figres of preios year ae been regroped, reclassified and recast, wereer considered necessary.








154


Annexure to schedule ‘l’

1. Te Company as entered into arrangements wit certain disti lleries and bottling nits in oter States for manfactring andmarketing of its own brands. Te manfactre nder te said arrangement, werein eac party’s obligations are stiplated, iscarried ot nder Company’s close sperision. Te marketing is entirely te responsbility of te Company. Te Company isalso reqired to ensre adeqate finance to te disti lleries, were reqired. Accordingly, it is considered appropriate to disclosete following qantitatie and ale information for te year as applicable to sc actiities.

Qantitatie information and Income from operations trog oter distilleries / bottling nits reflects te gross contribtionmade by tese nits and is detailed as nder

2009-10 2008-2009

uom Qa r Qa rGross Sales B.L. 34,659,513 5,566,393,653 6,901,920 1,115,179,328Net Sales 2,470,324,713 561,241,577

The total income reported in Schedule ‘I (1) is detailed as follows

2009-10 2008-09

Gross Sales of Companys’ brands and oter sales inclding salesmade by tie p arrangement 10,001,014,265 4,897,144,082Less : Ecise Dty 4,731,987,693 2,112,596,569Net Sales of Companys’ brands and oter sales 5,269,026,572 2,784,547,513Less : Net Sales made by tie p nits 2,470,324,713 561,241,577

Add : Net income from tie p arrangement 1,063,371,976 268,785,521Total Income 3,862,073,835 2,492,091,457

2. EARNINGS IN FOREIGN ExChANGE 52,501,880 81,460,676

3. ExPORT ThROuGh ThIRD PARTIES -

4. ExPENDITuRE IN FOREIGN CuRRENCY 9,589,785 2,666,708


FInAncIAL SAemenS nots ad cash Flow Statt




155

Aal port 200910

Amont in `

2009-10 2008-09


Net profit before ta & etraordinary items 538,531,476 316,065,333 Adjstment forDepreciation 71,268,636 32,760,485Srpls / Loss on sale of assets 123,542 215,642Proision for taes of earlier years - -Miscellaneos epenses written off 51,860 51,860

Interest net 232,954,528 105,641,438Diidend receied - 11

304,398,566 138,669,414Operating Profit before working capital canges Adjstment for:Increase / Decrease in inentory 251,745,844 375,251,973Increase / Decrease in trade receiables 165,937,865 94,194,322Increase / Decrease in loans and adances 1,527,963,161 452,018,963Decrease / Increase in trade payable and proisions 172,363,576 431,940,922

1,773,283,294 489,524,336

Proceeds from sort term borrowings 1,353,677,033 -

Ta proision 132,450,000 93,302,805

NET CASh FROM OPERATING ACTIvITIES 290,873,781 128,092,394


Prcase of fied assets 2,050,784,946 494,754,156Sale of fied assets 565,000 367,134Increase in inestments 2,531,000 31,447,293Diidend receied - 11Interest receied 2,886,899 1,456,531

NET CASh FROM INvESTING ACTIvITIES 2,049,864,047 524,377,773


Proceeds from isse of sare capital inclding premim 386,470,067 82,243,608Proceeds from borrowings net 1,929,710,775 721,310,364Interest paid 235,841,427 107,097,969Diidend and ta tereon 103,731,583 16,903,280

NET CASh FROM FINANCING ACTIvITIES 1,976,607,832 679,552,723

NET INCREASE IN CASh & CASh EQuIvALENTS 217,617,566 27,082,556Opening cas & cas eqialents 48,062,500 20,979,944Closing cas & cas eqialents 265,680,066 48,062,500






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