PHILLIPS CARBON BLACK LIMITED

(Incorporated in the Republic of India with limited liability under the Companies Act, 1956, with Registration Number 24602 and
Corporate Identification Number L24119WB1960PLC024602)
Phillips Carbon Black Limited (PCBL or our Company or the Issuer) is issuing 49,64,376 Equity Shares of face value Rs. 10/- each (the Equity Shares)
at a price of Rs 200/- per Equity Share, which represents a premium of Rs.190/- per Equity Share, for a sum of Rs. 9928.75 lakhs (the Issue) in reliance on upon Chapter
VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (SEBI REGULATIONS).
ISSUE AND THE DISTRIBUTION OF THE PLACEMENT DOCUMENT IS BEING MADE IN RELIANCE UPON
CHAPTER VIII OF THE SEBI REGULATIONS
THE ISSUE AND THE DISTRIBUTION OF THE PLACEMENT DOCUMENT IS BEING MADE IN RELIANCE UPON CHAPTER VIII OF THE SECURITIES
AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURES REQUIREMENTS) REGULATIONS, 2009 (SEBI REGULATIONS), IN
THE UNITED STATES ONLY TO PERSONS WHO ARE QUALIFIED INSTITUTIONAL BUYERS (AS DEFINED IN RULE 144A UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (SECURITIES ACT) AND OUTSIDE THE UNITED STATES IN RELIANCE ON REGULATION S
(REGULATION S) UNDER THE SECURITIES ACT. THE PLACEMENT DOCUMENT IS MEANT ONLY FOR QUALIFIED INSTITUTIONAL INVESTORS
(AS DEFINED IN THE SEBI REGULATIONS) (QIBs) ON A PRIVATE PLACEMENT BASIS AND IS PERSONAL TO EACH PROSPECTIVE QIB INVESTOR,
AND DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR EQUITY SHARES OR SOLICITATION OF AN OFFER TO THE PUBLIC
OR TO ANY OTHER PERSON OR CLASS OF INVESTORS WITHIN OR OUTSIDE INDIA.
Invitations, offers and sales of Equity Shares shall only be made pursuant to the Preliminary Placement Document, Placement Document, Confirmation of Allocation
Note and the Bid cum Application Form. For further details, please refer to the section titled, Issue Procedure on page 109 of this Placement Document. The distribution
of this Placement Document or the disclosure of its contents without our prior consent to any person, other than QIBs and persons retained by Qualified Institutional
Buyers to advise them with respect to their purchase of Equity Shares, is unauthorized and prohibited. Each Qualified Institutional Buyer, by accepting delivery of this
Placement Document agrees to observe the foregoing restrictions, and to make no copies of the Placement Document or any documents referred to in the Placement
Document.
THE PLACEMENT IS MEANT ONLY FOR QIBs ON A PRIVATE PLACEMENT BASIS AND IS NOT AN OFFER TO THE PUBLIC OR
TO ANY OTHER CLASS OF INVESTORS WITHIN OR OUTSIDE INDIA
This Placement Document has not been reviewed by the Securities and Exchange Board of India (SEBI), the Reserve Bank of India(RBI), the Bombay Stock
Exchange Limited (BSE), the National Stock Exchange of India Limited (NSE), the Calcutta Stock Exchange Limited (CSE), (BSE, NSE and CSE collectively
referred to as the Stock Exchanges) or any other regulatory or listing authority and is intended only for use by QIBs. The Placement Document has not been and will
not be registered as a prospectus with the Registrar of Companies in India, and will not be circulated or distributed to the public in India and will not constitute a public
offer in India or any other jurisdiction. The issue of Equity Shares has not been approved or disapproved by SEBI or any other Regulatory authority.
Investments in equity and equity related securities involve a degree of risk and prospective Investors should not invest any funds in the Issue unless they are
prepared to take the risk of losing all or part of their investment. Prospective Investors are advised to carefully read the Risk Factors of the Placement Document
before making an investment decision in the Issue. Each prospective Investor is advised to consult its advisors about the particular consequences to it of an
investment in the Equity Shares being issued pursuant to the Placement Document.
Our Company having made all reasonable enquiries, accepts responsibility for, and confirms that this Placement Document contains all information with regard to our
Company and the Issue, as required by Chapter VIII of the SEBI Regulations; that the information contained in this Placement Document is true and correct in all material
respects and is not misleading in any material respect; that the opinions and intentions expressed herein are honestly held and that there are no other facts the omission
of which makes this document as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.
The information on our Companys website or any website directly or indirectly linked to our Companys website or otherwise on the internet does not form part of
this Placement Document (other than information specifically contained in this Placement Document) and prospective Investors should not rely on such information
contained in, or available through, such websites.
All of our Companys outstanding Equity Shares are listed on the CSE, BSE and NSE. Applications shall be made for listing of the Equity Shares offered through this
Placement Document on the Stock Exchanges. The closing price of our outstanding Equity Shares as reported on the BSE and the NSE on April 29, 2010 was Rs. 218.40
and Rs. 218.10 per equity share, respectively. The Stock Exchanges assume no responsibility for the correctness of any statements made, opinions expressed or reports
contained herein. Admission of the Equity Shares to trading on the Stock Exchanges should not be taken as an indication of the merits of our Company or the Equity
Shares.
YOU MAY NOT AND ARE NOT AUTHORIZED TO (1) DELIVER THE PLACEMENT DOCUMENT TO ANY OTHER PERSON OR (2) REPRODUCE SUCH
PLACEMENT DOCUMENT IN ANY MANNER WHATSOEVER. ANY DISTRIBUTION OR REPRODUCTION OF THE PLACEMENT DOCUMENT IN
WHOLE OR IN PART IS UNAUTHORIZED. FAILURE TO COMPLY WITH THIS DIRECTIVE MAY RESULT IN A VIOLATION OF THE SEBI REGULATIONS,
OR OTHER APPLICABLE LAWS OF INDIA AND OTHER JURISDICTIONS.
A copy of the Preliminary Placement Document and the Placement Document has been delivered to the Stock Exchanges. A copy of this Placement Document will also
be delivered to the SEBI for record purposes. The Preliminary Placement Document or Placement Document will not be vetted by SEBI or any other regulator.
THIS PLACEMENT DOCUMENT HAS BEEN PREPARED BY OUR COMPANY SOLELY FOR PROVIDING INFORMATION IN CONNECTION WITH THE
PROPOSED ISSUE OF THE EQUITY SHARES DESCRIBED IN THIS PLACEMENT DOCUMENT.
The Equity Shares offered hereby are not transferable except in accordance with the restrictions described under Transfer Restrictions. The Equity Shares have not
been approved or disapproved by the SEBI or the U.S. Securities and Exchange Commission, any state securities commission in the United States or any other U.S.
regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the Issue or the accuracy or adequacy of this Placement Document.
Any representation to the contrary may be a criminal offence in certain jurisdictions.
The Equity Shares have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or for the account or benefit
of U.S. Persons (as defined in Regulation S of the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements
of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons who are
reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act) pursuant to Section 4(2) of the Securities Act and (b)
outside the United States in reliance on Regulation S. For further details, please refer to the section titled Transfer Restrictions.
The Placement Document is dated May 03, 2010
Serial Number :[]
CMYK
CMYK CMYK
Placement Document
Strictly Confidential and Not for Circulation
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BOOK RUNNING LEAD MANAGER ADVISOR TO THE COMPANY
VC CORPORATE ADVISORS PRIVATE LIMITED SMIFS CAPITAL MARKETS LIMITED



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1 N27ICE 72 INVES72FS 3
2 PFESEN7A7I2N 2) )INANCIALS AND 27+EF IN)2F0A7I2N 12
3 IND8S7F< AND 0AFKE7 DA7A 13
4 )2FWAFD-L22KIN* S7A7E0EN7S 14
5 EN)2FCE0EN7 2) CIVIL LIADILI7IES 15
6 *L2SSAF< 2) 7EF0S 1 ADDFEVIA7I2NS 16
7
DE7AILS 2) D22K F8NNIN* LEAD 0ANA*EF AND 27+EF ADVIS2FS
72 7+E ISS8E 20
8 S800AF< 2) 7+E ISS8E 21
9 S800AF< 2) D8SINESS 23
10 FISK )AC72FS 24
11 0AFKE7 PFICE IN)2F0A7I2N 37
12 8SE 2) PF2CEEDS 40
13 CAPI7ALISA7I2N S7A7E0EN7 41
14
EV2LVE0EN7 2) CAPI7AL S7F8C78FE, S+AFE+2LDIN* PA77EFN
AND 0AJ2F S+AFE+2LDEFS 42
15 DIVIDEND AND DIVIDEND P2LIC< 46
16 S800AF< SELEC7ED )INANCIAL AND 2PEFA7IN* DA7A 47
17
0ANA*E0EN7'S DISC8SSI2N AND ANAL<SIS 2) )INANCIAL
C2NDI7I2N AND FES8L7S 2) 2PEFA7I2NS 60
18 IND8S7F< 2VEFVIEW 70
19 D8SINESS 2VEFVIEW 78
20 D2AFD 2) DIFEC72FS AND KE< 0ANA*EFIAL PEFS2NNEL 92
21 FE*8LA7I2N AND P2LICIES 102
22 ISS8E PF2CED8FE 109
23 DIS7FID87I2N AND S2LICI7A7I2N FES7FIC7I2NS 121
24 7FANS)EF FES7FIC7I2NS 124
25 INDIAN SEC8FI7IES 0AFKE7 126
26 DESCFIP7I2N 2) S+AFES, CAPI7AL, 7FANS)EF, DIVIDEND, E7C 138
27 7A;A7I2N ASPEC7S FELA7IN* 72 7+E INS7F80EN7 148
28 LE*AL PF2CEEDIN*S 156
29 INDEPENDEN7 ACC28N7AN7S 158
30 DECLAFA7I2N 159
31 A8DI72FS FEP2F7 AND )INANCIAL S7A7E0EN7S 160
32 *ENEFAL IN)2F0A7I2N 246



1OT,&( TO ,19(6TO56

2ur Conpany acccpis rcsponsililiiy for iIc infornaiion coniaincd in iIis Placcncni Docuncni and io iIc
lcsi of our lnowlcdgc and lclicf, Iaving nadc all rcasonallc cnquirics, confirns iIai iIis Placcncni
Docuncni coniains all infornaiion wiiI rcspcci io our Conpany and iIc Equiiy SIarcs wIicI is naicrial
in iIc conici of iIc Issuc. 7Ic siaicncnis coniaincd in iIis Placcncni Docuncni rclaiing io our Conpany
and iIc Equiiy SIarcs arc, in cvcry naicrial rcspcci, iruc and accuraic and noi nislcading, iIc opinions
and inicniions cprcsscd in iIis Placcncni Docuncni wiiI rcgard io our Conpany and iIc Equiiy SIarcs
arc Ioncsily Icld, Iavc lccn rcacIcd aficr considcring all rclcvani circunsianccs, arc lascd on
infornaiion prcscnily availallc io our Conpany and arc lascd on rcasonallc assunpiions. 7Icrc arc no
oiIcr facis in rclaiion io our Conpany and iIc Equiiy SIarcs, iIc onission of wIicI would, in iIc conici
of iIc Issuc, nalc any siaicncni in iIis Placcncni Docuncni nislcading in any naicrial rcspcci. )uriIcr,
all rcasonallc cnquirics Iavc lccn nadc ly our Conpany io asccriain sucI facis and io vcrify iIc
accuracy of all sucI infornaiion and siaicncnis.

VC Corporaic Advisors Pvi. Lid., iIc Dool Funning Lcad 0anagcr, Ias noi scparaicly vcrificd iIc
infornaiion coniaincd in iIis Placcncni Docuncni (financial, lcgal or oiIcrwisci. Accordingly, iIc Dool
Funning Lcad 0anagcr nor any ncnlcr, cnploycc, counscl, officcr, dirccior, rcprcscniaiivc, agcni or
affiliaic of iIc Dool Funning Lcad 0anagcr nalcs any cprcss or inplicd rcprcscniaiion, warraniy or
undcrialing, and no rcsponsililiiy or lialiliiy is acccpicd, ly iIc Dool Funning Lcad 0anagcr as io iIc
accuracy or conplcicncss of iIc infornaiion coniaincd in iIis Placcncni Docuncni or any oiIcr
infornaiion supplicd in conncciion wiiI iIc Equiiy SIarcs. EacI pcrson rccciving iIis Placcncni
Docuncni aclnowlcdgcs iIai sucI pcrson Ias rclicd nciiIcr on iIc Dool Funning Lcad 0anagcr nor on
any pcrson affiliaicd wiiI iIc Dool Funning Lcad 0anagcr or in conncciion wiiI iis invcsiigaiion of iIc
accuracy of sucI infornaiion or iis invcsincni dccision, and cacI sucI pcrson nusi rcly on iis own
caninaiion of our Conpany and iIc ncriis and risls involvcd in invcsiing in iIc Equiiy SIarcs issucd
pursuani io iIc Issuc.

No pcrson is auiIorizcd io givc any infornaiion or io nalc any rcprcscniaiion noi coniaincd in iIis
Placcncni Docuncni and any infornaiion or rcprcscniaiion noi so coniaincd nusi noi lc rclicd upon as
Iaving lccn auiIorizcd ly or on lcIalf of our Conpany or iIc Dool Funning Lcad 0anagcr. 7Ic dclivcry
of iIis Placcncni Docuncni ai any iinc docs noi inply iIai iIc infornaiion coniaincd in ii is corrcci as ai
any iinc sulscqucni io iis daic.

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,VVXH RU WKH DFFXUDF\ RU DGHTXDF\ RI WKLV 3ODFHPHQW 'RFXPHQW $Q\ UHSUHVHQWDWLRQ WR WKH FRQWUDU\
LV D FULPLQDO RIIHQFH LQ WKH UQLWHG 6WDWHV DQG PD\ EH D FULPLQDO RIIHQFH LQ RWKHU MXULVGLFWLRQV

7Ic disiriluiion of iIis Placcncni Docuncni and iIc issuc of iIc Equiiy SIarcs pursuani io iIc issuc in ccriain
jurisdiciions nay lc rcsiricicd ly law. As sucI, iIis Placcncni Docuncni docs noi consiiiuic, and nay noi lc
uscd for or in conncciion wiiI, an offcr or soliciiaiion ly anyonc in any jurisdiciion in wIicI sucI offcr or
soliciiaiion is noi auiIorizcd or io any pcrson io wIon ii is unlawful io nalc sucI offcr or soliciiaiion. In
pariicular, no aciion Ias lccn ialcn ly our Conpany or iIc Dool Funning Lcad 0anagcr wIicI would pcrnii an
offcring of iIc Equiiy SIarcs or disiriluiion of iIis Placcncni Docuncni in any jurisdiciion, oiIcr iIan India,
wIcrc aciion for iIai purposc is rcquircd. Accordingly, iIc Equiiy SIarcs nay noi lc offcrcd or sold, dirccily or
indirccily, and nciiIcr iIis Placcncni Docuncni nor any offcring naicrials in conncciion wiiI iIc Equiiy SIarcs
nay lc disiriluicd or pullisIcd in or fron any couniry or jurisdiciion cccpi undcr circunsianccs iIai will rcsuli
in conpliancc wiiI any applicallc rulcs and rcgulaiions of any sucI couniry or jurisdiciion. WiiIin iIc 8niicd
Siaics, iIis Placcncni Docuncni is lcing providcd only io pcrsons wIo arc qualificd insiiiuiional luycrs"
as dcfincd in Fulc 144A undcr iIc Sccuriiics Aci.




In naling an invcsincni dccision, Invcsiors nusi rcly on iIcir own caninaiion of our Conpany and iIc icrns
of iIc Issuc, including iIc ncriis and risls involvcd. Invcsiors sIould noi consiruc iIc conicnis of iIis
Placcncni Docuncni as lcgal, ia, accouniing or invcsincni advicc. Invcsiors sIould consuli iIcir own counscl
and advisors as io lusincss, lcgal, ia, accouniing and rclaicd naiicrs, wIciIcr rclaiing io India or any oiIcr
jurisdiciion, conccrning iIc Issuc. In addiiion, nciiIcr our Conpany nor iIc Dool Funning Lcad 0anagcr arc
naling any rcprcscniaiion io any offcrcc or purcIascr of iIc Equiiy SIarcs rcgarding iIc lcgaliiy of an
invcsincni in iIc Equiiy SIarcs ly sucI offcrcc or purcIascr undcr applicallc lcgal, invcsincni or sinilar laws
or rcgulaiions, loiI insidc and ouisidc India.

7Iis Placcncni Docuncni coniains sunnarics of ccriain icrns of ccriain docuncnis, wIicI sunnarics
arc qualificd in iIcir cniirciy ly iIc icrns and condiiions of sucI docuncnis.

EacI purcIascr of iIc Equiiy SIarcs in iIc Issuc is dccncd io Iavc aclnowlcdgcd, rcprcscnicd and agrccd
iIai ii is cligillc io invcsi in India and in our Conpany undcr Indian law, including CIapicr VIII of iIc
SEDI Fcgulaiions and is noi proIiliicd ly iIc SEDI or any oiIcr siaiuiory auiIoriiy fron luying, sclling or
dcaling in sccuriiics. EacI purcIascr of Equiiy SIarcs in iIc Issuc also aclnowlcdgcs iIai ii Ias lccn
affordcd an opporiuniiy io rcqucsi fron our Conpany and rcvicw infornaiion rclaiing io our Conpany and
iIc Equiiy SIarcs.

7Ic infornaiion on our Conpany's Wclsiic. www.pclllid.con and iIc wclsiic of iIc Dool Funning Lcad
0anagcr. www.vccorporaic.con docs noi consiiiuic nor forn pari of iIis Placcncni Docuncni.

7Iis Placcncni Docuncni coniains sunnarics of ccriain icrns of ccriain docuncnis, lui rcfcrcncc is
nadc io iIc aciual docuncnis, copics of wIicI will lc nadc availallc upon rcqucsi during iIc offcring
pcriod for pIysical inspcciion ai iIc Fcgisicrcd 2fficc of our Conpany locaicd ai Kollaia, Wcsi Dcngal,
India, suljcci io applicallc confidcniialiiy rcsiriciions. All sucI sunnarics arc qualificd in iIcir cniirciy ly
iIis rcfcrcncc.

7Iis docuncni Ias lccn scni io you in an clccironic forn. <ou arc rcnindcd iIai docuncnis iransniiicd
via iIis ncdiun nay lc alicrcd or cIangcd during iIc proccss of clccironic iransnission and conscqucnily
iIc DFL0 as nancd in iIis docuncni, nor any pcrson wIo conirols iIc DFL0 any dirccior, officcr,
cnploycc nor agcni of iIcn or affiliaic of any sucI pcrson acccpis any lialiliiy or rcsponsililiiy wIaisocvcr
in rcspcci of any diffcrcncc lciwccn iIc docuncni disiriluicd io you in clccironic fornai and iIc Iard
copy vcrsion availallc io you on rcqucsi fron DFL0.

<ou arc rcnindcd iIai you Iavc acccsscd iIc aiiacIcd Placcncni Docuncni on iIc lasis iIai you arc a
pcrson inio wIosc posscssion iIc Placcncni Docuncni nay lc lawfully dclivcrcd in accordancc wiiI iIc
laws of iIc jurisdiciion in wIicI you arc locaicd and you nay noi nor arc you auiIorizcd io dclivcr or
forward iIis docuncni, clccironically or oiIcrwisc, io any oiIcr pcrson. If you Iavc gaincd acccss io iIis
iransnission conirary io iIc forcgoing rcsiriciions, you will lc unallc io purcIasc any of iIc sccuriiics
dcscrilcd iIcrcin.

$FWLRQV TKDW YRX MD\ 1RW TDNH. <ou sIould noi rcply ly c-nail io iIis announccncni, and you nay noi
purcIasc any sccuriiics ly doing so. Any rcply via c-nail connunicaiions, including iIosc you gcncraic ly
using iIc Fcply" funciion on your c-nail sofiwarc, will lc ignorcd or rcjccicd.

<ou nay noi and arc noi auiIorizcd io (1i forward or dclivcr iIc aiiacIcd Placcncni Docuncni,
clccironically or oiIcrwisc, io any oiIcr pcrson or (2i rcproducc sucI Placcncni Docuncni in any nanncr
wIaisocvcr. Any forwarding, disiriluiion or rcproduciion of iIis docuncni and iIc aiiacIcd Placcncni
Docuncni in wIolc or in pari is unauiIorizcd. )ailurc io conply wiiI iIis dircciivc nay rcsuli in a
violaiion of iIc 8.S. Sccuriiics Aci or iIc applicallc laws of oiIcr jurisdiciions.

YRX DUH UHVSRQVLEOH IRU SURWHFWLRQ DJDLQVW YLUXVHV DQG RWKHU GHVWUXFWLYH LWHPV <our usc of iIis c-nail is ai
your own risl and ii is your rcsponsililiiy io ialc prccauiions io cnsurc iIai ii is frcc fron viruscs and oiIcr
iicns of a dcsiruciivc naiurc.

5(35(6(1T$T,O16 %Y ,19(6TO56

All rcfcrcnccs io you" in iIis scciion arc io prospcciivc Invcsiors in iIc Issuc. Dy sulscriling io iIc Equiiy


SIarcs undcr iIc Issuc, you arc dccncd io Iavc rcprcscnicd and aclnowlcdgcd io our Conpany and iIc
DFL0 and agrccd as follows.

x <ou arc a qualificd insiiiuiional luycr as dcfincd in Fcgulaiion 2(1i(zdi of iIc SEDI Fcgulaiions and
undcrialc io acquirc, Iold, nanagc or disposc of any Equiiy SIarcs iIai arc allocaicd io you for iIc
purposcs of your lusincss in accordancc wiiI CIapicr VIII of iIc SEDI Fcgulaiions;

x you arc a rcsidcni of India or if you arc rcsidcni in couniry oiIcr iIan India iIai you arc pcrniiicd
ly all applicallc laws io acquirc Equiiy SIarcs;

x If you arc a rcsidcni of iIc 8.S. or a 8.S. pcrson (as dcfincd in Fcgulaiion Si, iIai you arc a 'qualificd
insiiiuiional luycr' as dcfincd in Fulc 144A and arc acquiring iIc Equiiy SIarcs for your own
accouni and noi wiiI a vicw io disiriluiion;

x you confirn iIai (ai iIc clccironic nail addrcss iIai you gavc us and io wIicI iIc clccironic nail
Ias lccn dclivcrcd is noi locaicd in iIc 8niicd Siaics, iis icrriiorics or posscssions and (li io iIc
cicni iIai you purcIasc iIc sccuriiics dcscrilcd in iIc Placcncni Docuncni, you will lc doing so
(ii pursuani io Fcgulaiion S undcr iIc 8.S. Sccuriiics Aci of 1933, as ancndcd (iIc Sccuriiics Aci"i
or (iii you arc, or arc aciing on lcIalf of, a qualificd insiiiuiional luycr" as dcfincd in Fulc 144A
pursuani io Scciion 4(2i of iIc Sccuriiics Aci; (ci you arc awarc iIai iIc sccuriiics offcrcd Icrcly
Iavc noi lccn and will noi lc rcgisicrcd undcr iIc 8.S. Sccuriiics Aci;

x <ou conscni io dclivcry of iIis Placcncni Docuncni and any ancndncnis or supplcncnis iIcrcio
ly clccironic iransnission. <ou arc rcnindcd iIai iIis docuncni Ias lccn dclivcrcd io you on iIc
lasis iIai you arc a pcrson inio wIosc posscssion iIis docuncni nay lc lawfully dclivcrcd in
accordancc wiiI iIc laws of iIc jurisdiciion in wIicI you arc locaicd and you nay noi, nor arc you
auiIorizcd io, dclivcr iIis docuncni io any oiIcr pcrson. 7Ic naicrials rclaiing io iIc Issuc do noi
consiiiuic, and nay noi lc uscd in conncciion wiiI, an offcr or soliciiaiion in any placc wIcrc offcrs
or soliciiaiions arc noi pcrniiicd ly law;

x 7Ic Equiiy SIarcs Iavc noi lccn and will noi lc rcgisicrcd undcr iIc SEDI Fcgulaiions or undcr any
oiIcr law in forcc in India. 7Ic Placcncni Docuncni Ias noi lccn vcrificd or affirncd ly SEDI or iIc
Siocl EcIangcs and will noi lc filcd wiiI iIc Fcgisirar of Conpanics. 7Ic Placcncni Docuncni will
lc filcd wiiI iIc Siocl EcIangcs for rccord purposcs only and will lc displaycd on iIc wclsiics of
our Conpany and iIc Siocl EcIangcs;

x <ou arc cniiilcd io sulscrilc for and acquirc iIc Equiiy SIarcs undcr iIc laws of all rclcvani
jurisdiciions and you Iavc all ncccssary capaciiy and Iavc oliaincd all ncccssary conscnis and
auiIoriiics, and iIai you Iavc fully olscrvcd sucI laws and oliaincd all sucI govcrnncnial and
oiIcr guaraniccs and oiIcr conscnis, in cacI casc, wIicI nay lc rcquircd iIcrcundcr, and conplicd
wiiI all ncccssary fornaliiics io cnallc you io connii io pariicipaiion in iIc Issuc and io pcrforn
your olligaiions in rclaiion iIcrcio (including, in iIc casc of any pcrson on wIosc lcIalf you arc
aciing, all ncccssary conscnis and auiIorizaiions io agrcc io iIc icrns sci oui or rcfcrrcd io in iIc
Placcncni Docuncnii, and will Ionor sucI olligaiions;

x <ou confirn iIai, ciiIcr. (ii you Iavc noi pariicipaicd in or aiicndcd any invcsior ncciings or
prcscniaiions ly our Conpany or iis agcnis (&RPSDQ\ 3UHVHQWDWLRQV"i wiiI rcgard io our
Conpany or iIc Issuc; or (iii if you Iavc pariicipaicd in or aiicndcd any Conpany Prcscniaiions. (ai
you undcrsiand and aclnowlcdgc iIai iIc DFL0 nay noi Iavc lnowlcdgc of iIc siaicncnis iIai
our Conpany or iis agcnis nay Iavc nadc ai sucI Conpany Prcscniaiions and arc iIcrcforc unallc
io dcicrninc wIciIcr iIc infornaiion providcd io you ai sucI Conpany Prcscniaiions nay Iavc
includcd any naicrial nissiaicncnis or onissions, and, accordingly you aclnowlcdgc iIai iIc
DFL0 Ias adviscd you noi io rcly in any way on any infornaiion iIai was providcd io you ai sucI
Conpany Prcscniaiions, and (li confirn iIai, io iIc lcsi of your lnowlcdgc, you Iavc noi lccn
providcd any naicrial infornaiion iIai was noi pullicly availallc;





x NciiIcr our Conpany nor iIc DFL0 arc naling any rcconncndaiions io you or advising you
rcgarding iIc suiialiliiy of any iransaciions ii nay cnicr inio in conncciion wiiI iIc Issuc and
pariicipaiion in iIc Issuc is on iIc lasis iIai you arc noi, and will noi, up io iIc alloincni of iIc
Equiiy SIarcs, lc a clicni of iIc DFL0. 7Ic DFL0 docs noi Iavc duiics or rcsponsililiiics io you for
providing iIc proicciion affordcd io iis clicnis or cusioncrs or for providing advicc in rclaiion io iIc
Issuc and is noi in any way aciing in any fiduciary capaciiy;

x <ou undcrsiand iIai iIc Equiiy SIarcs arc lcing offcrcd only io 4IDs and arc noi lcing offcrcd io
iIc gcncral pullic and iIc alloincni of iIc sanc sIall lc on a discrciionary lasis;

x <ou Iavc nadc, or lccn dccncd io Iavc nadc, as applicallc, iIc rcprcscniaiions sci foriI undcr
7UDQVIHU 5HVWULFWLRQV";

x <ou Iavc lccn providcd a scrially nunlcrcd copy of cacI of iIc Placcncni Docuncni and iIis
Placcncni Docuncni, and Iavc rcad iIcn in iIcir cniirciy, including in pariicular, iIc 5LVN
)DFWRUV";

x In naling your invcsincni dccision, you Iavc (ii rclicd on your own caninaiion of our Conpany
and iIc icrns of iIc Issuc, including iIc ncriis and risls involvcd, (iii nadc your own asscssncni
of our Conpany, iIc Equiiy SIarcs and iIc icrns of iIc Issuc lascd on sucI infornaiion as is
pullicly availallc, (iiii consulicd your own indcpcndcni counscl and advisors or oiIcrwisc Iavc
saiisficd yoursclf conccrning, iIc cffccis of local laws, (ivi rclicd solcly on iIc infornaiion coniaincd
in iIc Placcncni Docuncni and no oiIcr disclosurc or rcprcscniaiion ly our Conpany or any oiIcr
pariy, (vi rcccivcd all infornaiion iIai you lclicvc is ncccssary or appropriaic in ordcr io nalc an
invcsincni dccision in rcspcci of our Conpany and iIc Equiiy SIarcs, and (vii rclicd upon your own
invcsiigaiion and rcsourccs in dcciding io invcsi in iIc Issuc;

x <ou Iavc sucI lnowlcdgc and cpcricncc in financial and lusincss naiicrs as io lc capallc of
cvaluaiing iIc ncriis and risls of iIc invcsincni in iIc Equiiy SIarcs and you and any nanagcd
accounis for wIicI you arc sulscriling for iIc Equiiy SIarcs (ii arc cacI allc io lcar iIc ccononic
risl of iIc invcsincni in iIc Equiiy SIarcs, (iii will noi lool io our Conpany and1or iIc DFL0 or
any affiliaics, dircciors, officcrs or cnployccs iIcrcof, for all or pari of any sucI loss or losscs iIai
nay lc suffcrcd, (iiii arc allc io susiain a conplcic loss on iIc invcsincni in iIc Equiiy SIarcs, (ivi
Iavc no nccd for liquidiiy wiiI rcspcci io iIc invcsincni in iIc Equiiy SIarcs, and (vi Iavc no
rcason io aniicipaic any cIangc in your or iIcir circunsianccs, financial or oiIcrwisc, wIicI nay
causc or rcquirc any salc or disiriluiion ly you or iIcn of all or any of iIc Equiiy SIarcs;

x 7Ic DFL0 Ias noi providcd you wiiI any ia advicc or oiIcrwisc nadc any rcprcscniaiions
rcgarding iIc ia conscqucnccs of purcIasc, owncrsIip and disposal of iIc Equiiy SIarcs
(including, iIc Issuc and iIc usc of procccds fron iIc Equiiy SIarcsi. <ou will oliain your own
indcpcndcni ia advicc fron a rcpuiallc scrvicc providcr and will noi rcly on iIc DFL0 wIcn
cvaluaiing iIc ia conscqucnccs in rclaiion io iIc Equiiy SIarcs (including, in rclaiion io iIc Issuc
and iIc usc of procccds fron iIc Equiiy SIarcsi. <ou waivc and agrcc noi io asscri any clain
againsi iIc DFL0 wiiI rcspcci io iIc ia aspccis of iIc Equiiy SIarcs or as a rcsuli of any ia
audiis ly ia auiIoriiics, wIcrcvcr siiuaicd;

x WIcrc you arc acquiring iIc Equiiy SIarcs for onc or norc nanagcd accounis, you rcprcscni and
warrani iIai you arc auiIorizcd in wriiing, ly cacI sucI nanagcd accouni io acquirc iIc Equiiy
SIarcs for cacI nanagcd accouni and nalc iIc rcprcscniaiions, warraniics, aclnowlcdgcncnis and
agrccncnis Icrcin for and on lcIalf of cacI sucI accouni, rcading iIc rcfcrcncc io 'you' io includc
sucI accounis;

x <ou arc noi a Pronoicr (as dcfincd in iIc SEDI Fcgulaiionsi, or arc noi a pcrson rclaicd io iIc
Pronoicrs, ciiIcr dirccily or indirccily and your Did (Icrcinaficr dcfincdi docs noi dirccily or
indirccily rcprcscni any Pronoicr or Pronoicr *roup (as dcfincd in iIc SEDI Fcgulaiionsi of our
Conpany or pcrsons or cniiiics rclaicd iIcrcio;

x <ou Iavc no rigIis undcr a sIarcIoldcrs agrccncni or voiing agrccncni wiiI iIc Pronoicrs or


pcrsons rclaicd io iIc Pronoicrs, no vcio rigIis or rigIi io appoini any nonincc dirccior on iIc
Doard of Dircciors of our Conpany, (%RDUG"i, oiIcr iIan iIc rigIis, if any, acquircd in iIc capaciiy
of a lcndcr noi Iolding any Equiiy SIarcs;

x <ou Iavc no rigIi io wiiIdraw your lid aficr sulniiiing your lid;

x <ou arc cligillc io lid for and Iold Equiiy SIarcs so alloiicd and iogciIcr wiiI any Equiiy SIarcs
Icld ly you prior io iIc Issuc.

x <ou arc cligillc io apply and Iold Equiiy SIarcs so alloiicd iogciIcr wiiI any Equiiy SIarcs Icld ly
you prior io iIc Issuc. <ou confirn iIai your aggrcgaic Iolding aficr iIc alloincni of iIc Equiiy
SIarcs sIall noi ccccd iIc lcvcl pcrnissillc as pcr any applicallc rcgulaiion;

x 7Ic lid nadc ly you would noi rcsuli in iriggcring a icndcr offcr undcr iIc SEDI (Sulsianiial
Acquisiiion of SIarcs and 7alcovcrsi Fcgulaiions, 1997 (iIc TDNHRYHU &RGH"i;

x 7o iIc lcsi of your lnowlcdgc and lclicf, your aggrcgaic Iolding, iogciIcr wiiI oiIcr 4IDs in iIc
Issuc iIai lclong io iIc sanc group or arc undcr connon conirol as you, pursuani io iIc alloincni
undcr iIc Issuc sIall noi ccccd 50% of iIc Issuc. )or iIc purposcs of iIis rcprcscniaiion.

a. 7Ic cprcssion 'lclong io iIc sanc group' sIall dcrivc ncaning fron iIc conccpi of 'conpanics
undcr iIc sanc group' as providcd in sul-scciion (11i of Scciion 372 of iIc Conpanics Aci.

l. 'Conirol' sIall Iavc iIc sanc ncaning as is assigncd io ii ly Clausc (ci of Fcgulaiion 2 of iIc
7alcovcr Codc.

x <ou sIall noi undcrialc any iradc in iIc Equiiy SIarcs crcdiicd io your dcposiiory
pariicipani accouni uniil sucI iinc iIai iIc final lisiing and irading approval for iIc Equiiy SIarcs
is issucd ly iIc Siocl EcIangcs;

x you arc awarc iIai in-principal approvals undcr clausc 24(ai of iIc Lisiing Agrccncni Iavc lccn
rcccivcd fron iIc Siocl EcIangcs for lisiing of iIc Equiiy SIarcs. )uriIcr applicaiions sIall lc
nadc for sccling iIc approval for lisiing of and irading of iIc Equiiy SIarcs on iIc Siocl EcIangcs
upon Iaving nadc alloincni of Equiiy SIarcs in iIc Issuc and iIcrc can lc no assurancc iIai sucI
final approval will lc oliaincd on iinc or ai all;

x you arc awarc and undcrsiand iIai iIc DFL0 Ias cnicrcd inio a placcncni agrccncni wiiI our
Conpany (Placcncni Agrccncni"i wIcrcly iIc DFL0 Ias, suljcci io iIc saiisfaciion of ccriain
condiiions sci oui iIcrcin, undcrialcn io usc iIcir rcasonallc cndcavors as agcnis of our Conpany
io sccl io procurc purcIascrs for iIc Equiiy SIarcs;

x 7Ic conicnis of iIis Placcncni Docuncni arc cclusivcly iIc rcsponsililiiy of our Conpany and iIai
nciiIcr iIc DFL0, nor any pcrson aciing on iis lcIalf, Ias or sIall Iavc any lialiliiy for any
infornaiion, rcprcscniaiion or siaicncni coniaincd in iIis Placcncni Docuncni or any infornaiion
prcviously pullisIcd ly or on lcIalf of our Conpany and will noi lc liallc for your dccision io
pariicipaic in iIc Issuc lascd on any infornaiion, rcprcscniaiion or siaicncni coniaincd in iIis
Placcncni Docuncni or oiIcrwisc. Dy acccpiing pariicipaiion in iIc Issuc, you agrcc io iIc sanc
and confirn iIai you Iavc nciiIcr rcccivcd nor rclicd on any oiIcr infornaiion, rcprcscniaiion,
warraniy or siaicncni nadc ly, or on lcIalf of, iIc DFL0 or our Conpany or any oiIcr pcrson and
nciiIcr iIc DFL0 nor our Conpany nor any oiIcr pcrson will lc liallc for your dccision io
pariicipaic in iIc Issuc lascd on any oiIcr infornaiion, rcprcscniaiion, warraniy or siaicncni iIai
you nay Iavc oliaincd or rcccivcd;

x 7Ic only infornaiion you arc cniiilcd io rcly on, and on wIicI you Iavc rclicd in conniiiing yoursclf
io acquirc iIc Equiiy SIarcs is coniaincd in iIis Placcncni Docuncni, sucI infornaiion lcing all
iIai you dccn ncccssary io nalc an invcsincni dccision in rcspcci of iIc Equiiy SIarcs, and you
Iavc nciiIcr rcccivcd nor rclicd on any oiIcr infornaiion givcn or rcprcscniaiions, warraniics,
siaicncnis or opinions nadc ly any of iIc DFL0 or our Conpany or any of iIcir rcspcciivc affiliaics


and iIc DFL0 and iis rcspcciivc affiliaics will noi lc liallc for your dccision io acccpi an inviiaiion
io pariicipaic in iIc Issuc lascd on any oiIcr infornaiion, rcprcscniaiion, warraniy, siaicncni or
opinion;

x All siaicncnis oiIcr iIan siaicncnis of Iisiorical faci includcd in iIc Placcncni Docuncni,
including iIosc rcgarding our Conpany's financial posiiion, lusincss siraicgy, plans and oljcciivcs
of nanagcncni for fuiurc opcraiions (including dcvclopncni plans and oljcciivcs rclaiing io our
Conpany's lusincssi, arc forward-looling siaicncnis. SucI forward-looling siaicncnis involvc
lnown and unlnown risls, unccriainiics and oiIcr inporiani faciors iIai could causc aciual
rcsulis io lc naicrially diffcrcni fron fuiurc rcsulis, pcrfornancc or acIicvcncnis cprcsscd or
inplicd ly sucI forward-looling siaicncnis. SucI forward-looling siaicncnis arc lascd on
x nuncrous assunpiions rcgarding our Conpany's prcscni and fuiurc lusincss siraicgics and
cnvironncni in wIicI our Conpany will opcraic in iIc fuiurc. <ou sIould noi placc unduc rcliancc
on forward-looling siaicncnis, wIicI spcal only as ai iIc daic of iIc Placcncni Docuncni. 2ur
Conpany assuncs no rcsponsililiiy io updaic any of iIc forward-looling siaicncnis coniaincd in
iIc Placcncni Docuncni;

x 7Ic Equiiy SIarcs will, wIcn issucd, lc crcdiicd as fully paid and will ranl SDUL SDVVX in all rcspccis
wiiI iIc cisiing Equiiy SIarcs of iIc Issucr including iIc rigIi io rcccivc all dividcnds and oiIcr
disiriluiions dcclarcd, nadc or paid in rcspcci of sucI Equiiy SIarcs aficr iIc daic of issuc of iIc
Equiiy SIarcs;

x <ou arc cligillc io invcsi in India undcr applicallc law, including iIc )orcign EcIangc 0anagcncni
(7ransfcr or Issuc of Sccuriiy ly Pcrson Fcsidcni 2uisidc Indiai Fcgulaiions, 2000, and any
noiificaiions, circulars or clarificaiions issucd iIcrcundcr, and Iavc noi lccn proIiliicd ly SEDI or
any oiIcr couri, irilunal or rcgulaiory auiIoriiy, fron luying, sclling or dcaling in sccuriiics;

x <ou agrcc io indcnnify and Iold our Conpany and iIc DFL0 Iarnlcss fron any and all cosis,
clains, lialiliiics and cpcnscs (including lcgal fccs and cpcnscsi arising oui of or in conncciion
wiiI any lrcacI of iIc forcgoing rcprcscniaiions, warraniics, aclnowlcdgcncnis and undcrialings
nadc ly you in iIis Placcncni Docuncni. <ou agrcc iIai iIc indcnniiy sci foriI in iIis paragrapI
sIall survivc iIc rcsalc of iIc Equiiy SIarcs ly, or on lcIalf of, iIc nanagcd accounis;

x 2ur Conpany, iIc DFL0, iIcir rcspcciivc affiliaics and oiIcrs will rcly on iIc iruiI and accuracy of
iIc forcgoing rcprcscniaiions, warraniics, aclnowlcdgcncnis and undcrialings, wIicI arc givcn io
iIc DFL0 on iIcir own lcIalf and on lcIalf of our Conpany, and arc irrcvocallc; and

x 7Ic DFL0 Ias no olligaiion io purcIasc or acquirc all or any of iIc Equiiy SIarcs purcIascd ly you
in iIc Issuc or io suppori any losscs dirccily or indirccily susiaincd or incurrcd ly you for any
rcason wIaisocvcr in conncciion wiiI iIc Issuc, including non-pcrfornancc ly our Conpany of any
of iis olligaiions or any lrcacI of any rcprcscniaiions and warraniics ly our Conpany, wIciIcr io
you or oiIcrwisc;

x <ou arc a sopIisiicaicd invcsior sccling io purcIasc iIc Equiiy SIarcs for your own invcsincni and
noi wiiI a vicw io disiriluiion; In pariicular, you aclnowlcdgc iIai (ii an invcsincni in iIc Equiiy
SIarcs involvcs a IigI dcgrcc of risl and iIai iIc Equiiy SIarcs arc, iIcrcforc, a spcculaiivc
invcsincni, (iii you Iavc sufficicni lnowlcdgc, sopIisiicaiion and cpcricncc in financial and
lusincss naiicrs so as io lc capallc of cvaluaiing iIc ncriis and risl of iIc purcIasc of iIc Equiiy
SIarcs, and (iiii you arc cpcricnccd in invcsiing in privaic placcncni iransaciions of sccuriiics of
conpanics in a sinilar siagc of dcvclopncni and in sinilar jurisdiciions and Iavc sucI lnowlcdgc
and cpcricncc in financial, lusincss and invcsincnis naiicrs iIai you arc capallc of cvaluaiing iIc
ncriis and risls of your invcsincni in iIc Equiiy SIarcs;

x If you arc alloiicd Equiiy SIarcs pursuani io iIc Issuc, you sIall noi, for a pcriod of onc ycar fron
iIc daic of alloincni (Icrcinaficr dcfincdi, scll iIc Equiiy SIarcs so acquircd oiIcrwisc iIan on iIc
floor of iIc Siocl EcIangcs;

x any dispuic arising in conncciion wiiI iIis Issuc will lc govcrncd ly and consirucd in accordancc


wiiI iIc laws of iIc Fcpullic of India and iIc couris ai Kollaia, India sIall Iavc cclusivc
jurisdiciion io sciilc any dispuics wIicI nay arisc oui of or in conncciion wiiI iIis Placcncni
Docuncni; and

x EacI of iIc rcprcscniaiions, warraniics, aclnowlcdgcncnis and agrccncnis sci oui alovc sIall
coniinuc io lc iruc and accuraic ai all iincs up io and including iIc alloincni of iIc Equiiy SIarcs
in iIc Issuc.


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)orcign Insiiiuiional Invcsiors as dcfincd undcr iIc SEDI Fcgulaiions 1 *uidclincs or iIcir sul-accounis
(iogciIcr rcfcrrcd io as F,,V"i, wcrc pcrniiicd undcr Fcgulaiions 15A(1i of iIc Sccuriiics and EcIangc
Doard of India ()orcign Insiiiuiional Invcsiorsi Fcgulaiions, 1995, as ancndcd, io issuc, dcal in or Iold, off
sIorc dcrivaiivc insiruncnis sucI as pariicipaiory noics, cquiiy linlcd noics or any oiIcr sinilar
insiruncnis againsi SIarcs allocaicd in iIc Issuc (all sucI off sIorc dcrivaiivc insiruncnis rcfcrrcd io
Icrcin as 31RWHV"i, for wIicI iIcy nay rcccivc conpcnsaiion fron iIc purcIascrs of sucI insiruncnis.
7Ic SEDI YLGH Sccuriiics and EcIangc Doard of India ()orcign Insiiiuiional Invcsiorsi (Ancndncnii
Fcgulaiions, 2008, as furiIcr ancndcd ly iIc Sccuriiics and EcIangc Doard of India ()orcign
Insiiiuiional Invcsiorsi (Sccond Ancndncnii Fcgulaiions, 2008 ($PHQGPHQW 5HJXODWLRQV"i Ias siaicd
iIai no )II sIall issuc any offsIorc dcrivaiivc insiruncnis io any pcrson oiIcr iIan a pcrson rcgulaicd ly
an appropriaic forcign rcgulaiory auiIoriiy, iIai iIcy sIould lc issucd aficr conpliancc wiiI 'lnow your
clicni' norns and iIc )IIs arc rcquircd io canccl, rcdccn or closc oui sucI offsIorc dcrivaiivc insiruncnis
so issucd io a pcrson oiIcr iIan a pcrson rcgulaicd ly an appropriaic forcign rcgulaiory auiIoriiy, lcforc
0arcI 31, 2009. )II's arc also rcquircd io cnsurc iIai no furiIcr issuc or iransfcr is nadc of any P-Noics
issucd ly or on lcIalf of ii io any pcrson oiIcr iIan a pcrson rcgulaicd ly an appropriaic forcign
rcgulaiory auiIoriiy. )uriIcr, no sul-accouni sIall, dirccily or indirccily, issuc offsIorc dcrivaiivc
insiruncnis. and iIc offsIorc dcrivaiivc insiruncnis issucd dirccily or indirccily ly a sul-accouni, lcforc
iIc conncnccncni of iIc Ancndncni Fcgulaiions and ouisianding as ai sucI conncnccncni sIall lc
canccllcd or rcdccncd or closcd oui lcforc 0arcI 31, 2009. )II's arc also rcquircd infornaiion rcgarding
sucI P-Noics in sucI fornai and ai sucI inicrvals as is prcscrilcd ly SEDI fron iinc io iinc.

P-Noics Iavc noi lccn and arc noi lcing offcrcd or sold pursuani io iIis Placcncni Docuncni. 7Iis
Placcncni Docuncni docs noi coniain nor will ii coniain any infornaiion conccrning P-Noics or iIc
issucr(si of any P-Noics, including wiiIoui liniiaiion, any infornaiion rcgarding any risl faciors rclaiing
iIcrcio.

Any P-Noics iIai nay lc issucd arc noi sccuriiics of our Conpany and do noi consiiiuic any olligaiions of,
clain on, or inicrcsis in our Conpany. 2ur Conpany Ias noi pariicipaicd in any offcr of any P-Noics, or in
iIc csiallisIncni of iIc icrns of any P-Noics, or in iIc prcparaiion of any disclosurc rclaicd io any P-
Noics. Any P-Noics iIai nay lc offcrcd arc issucd ly, and arc solcly iIc olligaiions of, iIird pariics iIai
arc unrclaicd io our Conpany. 2ur Conpany and iis affiliaics do noi nalc any rcconncndaiion as io any
invcsincni in P-Noics and do noi acccpi any rcsponsililiiy wIaisocvcr in conncciion wiiI any P-Noics.

Any P-Noics iIai nay lc issucd arc noi sccuriiics of iIc DFL0 and do noi consiiiuic any olligaiions of, or
clains on, iIc DFL0.

Prospcciivc Invcsiors inicrcsicd in purcIasing any P-Noics Iavc iIc rcsponsililiiy io oliain adcquaic
disclosurc as io iIc issucr(si of any P-Noics and iIc icrns and condiiions of any sucI P-Noics fron iIc
issucr(si of sucI P-Noics. NciiIcr SEDI nor any oiIcr rcgulaiory auiIoriiy Ias rcvicwcd or approvcd any P-
Noics or any disclosurc rclaicd iIcrcio. Prospcciivc Invcsiors arc urgcd io consuli wiiI iIcir own financial,
lcgal, accouniing and ia advisors rcgarding any conicnplaicd invcsincni in P-Noics, including wIciIcr P-
Noics arc issucd in conpliancc wiiI applicallc laws and rcgulaiions.








',6&/$,M(5 &/$U6( OF TH( 6TO&. (X&H$1G(6


As rcquircd, a copy of iIc Prclininary Placcncni Docuncni and iIc Placcncni Docuncni Ias lccn
sulniiicd io iIc Siocl EcIangcs. 7Ic Siocl EcIangcs do noi in any nanncr.

1. warrani, ccriify or cndorsc iIc corrccincss or conplcicncss of any of iIc conicnis of iIc Prclininary
Placcncni Docuncni and Placcncni Docuncni;

2. warrani iIai our Conpany's Equiiy SIarcs will lc lisicd or will coniinuc io lc lisicd on iIc Siocl
EcIangcs; or

3. ialc any rcsponsililiiy for iIc financial or oiIcr soundncss of our Conpany, iis Pronoicrs, iis
nanagcncni or any scIcnc or projcci of our Conpany;

and ii sIould noi for any rcason lc dccncd or consirucd io ncan iIai iIc Prclininary Placcncni Docuncni
or iIc Placcncni Docuncni Ias lccn clcarcd or approvcd ly Siocl EcIangcs. Evcry pcrson wIo dcsircs io
apply for or oiIcrwisc acquircs any sccuriiics of our Conpany nay do so pursuani io an indcpcndcni
inquiry, invcsiigaiion and analysis and sIall noi Iavc any clain againsi iIc Siocl EcIangcs wIaisocvcr ly
rcason of any loss wIicI nay lc suffcrcd ly sucI pcrson conscqucni io or in conncciion wiiI sucI
sulscripiion1acquisiiion wIciIcr ly rcason of anyiIing siaicd or oniiicd io lc siaicd Icrcin or for any
oiIcr rcason wIaisocvcr.














































35(6(1T$T,O1 OF F,1$1&,$/6 $1' OTH(5 ,1FO5M$T,O1

7Ic financial siaicncnis includcd in iIis Placcncni Docuncni arc prcparcd in accordancc wiiI Indian
*AAP. Any discrcpancics in any iallc lciwccn iIc ioials and iIc sun of iIc anounis lisicd arc duc io
rounding off. Indian *AAP diffcrs significanily in ccriain rcspccis fron I)FS and 8.S. *AAP. Wc do noi
providc a rcconciliaiion of any financial siaicncnis io I)FS or 8.S. *AAP financial siaicncnis or a
sunnary of iIc principal diffcrcnccs lciwccn Indian *AAP, I)FS and 8.S. *AAP rclcvani io our lusincss.

In iIis Placcncni Docuncni, unlcss oiIcrwisc indicaicd or iIc conici oiIcrwisc rcquircs, all rcfcrcnccs io
PIillips Carlon Dlacl Liniicd", PCDL", iIc Conpany", wc", our", us", or sinilar icrns arc io PIillips
Carlon Dlacl Liniicd" and all rcfcrcnccs io you" arc io iIc prospcciivc Invcsiors in iIc Equiiy SIarcs.
Fcfcrcnccs in iIis Placcncni Docuncni io India" arc io iIc Fcpullic of India and iIc *ovcrnncni" arc io
iIc *ovcrnncnis of India, ccniral, siaic or local lcvcl, as applicallc.

8nlcss siaicd oiIcrwisc, iIc financial daia in iIis Placcncni Docuncni is dcrivcd fron our financial
siaicncnis prcparcd in accordancc wiiI Indian *AAP. 2ur )iscal ycar conncnccs on April 1 and cnds on
0arcI 31 of iIc nci ycar, so all rcfcrcnccs io a pariicular )iscal ycar arc io iIc iwclvc-noniI pcriod cndcd
on 0arcI 31 of iIai ycar.

All rcfcrcnccs io Fupccs", FS", Fs" or Fupccs arc io iIc official currcncy of iIc Fcpullic of India. All
rcfcrcncc io 8S$", 8SD", 8niicd Siaics Dollars arc io iIc official currcncy of 8niicd Siaics of Ancrica

)or addiiional dcfiniiions, plcasc rcfcr io iIc cIapicr iiilcd '*ORVVDU\ RI 7HUPV $EEUHYLDWLRQ of iIis
Placcncni Docuncni.

0arlci and indusiry daia uscd in iIis Placcncni Docuncni Iavc lccn oliaincd fron pullicaiions
availallc in iIc pullic donain. 7Icsc pullicaiions gcncrally siaic iIai iIc infornaiion coniaincd iIcrcin
Ias lccn oliaincd fron sourccs lclicvcd io lc rcliallc lui iIai iIcir accuracy and conplcicncss arc noi
guaraniccd and iIcir rclialiliiy cannoi lc assurcd. AliIougI iIc indusiry daia uscd in iIis Placcncni
Docuncni is rcliallc, ii Ias noi lccn indcpcndcnily vcrificd.


,1'U6T5Y $1' M$5.(T '$T$

Infornaiion rcgarding narlci posiiion, growiI raics and oiIcr indusiry daia pcriaining io our lusincss
coniaincd in iIis Placcncni Docuncni consisis of csiinaics lascd on daia rcporis conpilcd fron
govcrnncni wclsiics, ly profcssional organizaiions and analysis, daia fron oiIcr cicrnal sourccs and our
lnowlcdgc of narlcis in wIicI wc conpcic. 7Ic siaiisiical infornaiion includcd in iIis Placcncni
Docuncni Ias lccn rcproduccd fron various iradc, indusiry and govcrnncni pullicaiions and wclsiics.
7Iis daia is suljcci io cIangc and cannoi lc vcrificd wiiI conplcic ccriainiy duc io liniis on iIc
availaliliiy and rclialiliiy of iIc raw daia and oiIcr liniiaiions and unccriainiics inIcrcni in any siaiisiical
survcy. In nany cascs, iIcrc is no rcadily availallc cicrnal infornaiion (wIciIcr fron iradc or indusiry
associaiions, govcrnncni lodics or oiIcr organizaiionsi io validaic narlci-rclaicd analyscs and csiinaics,
so wc rcly on inicrnally dcvclopcd csiinaics. WIilc wc Iavc conpilcd, ciracicd and rcproduccd iIis daia
fron cicrnal sourccs, including iIird pariics, iradc, indusiry or gcncral pullicaiions, wc acccpi
rcsponsililiiy for accuraicly rcproducing sucI daia. +owcvcr, nciiIcr wc nor iIc Dool Funning Lcad
0anagcr Iavc indcpcndcnily vcrificd iIis daia and nciiIcr wc nor iIc Dool Funning Lcad 0anagcr nalc
any rcprcscniaiion rcgarding iIc accuracy of sucI daia. Sinilarly, wIilc wc lclicvc our inicrnal csiinaics
io lc rcasonallc, sucI csiinaics Iavc noi lccn vcrificd ly any indcpcndcni sourccs and nciiIcr wc nor iIc
Dool Funning Lcad 0anagcr can assurc poicniial Invcsiors as io iIcir accuracy.


FO5:$5'/OO.,1G 6T$T(M(1T6

7Iis Placcncni Docuncni, as wcll as iIc infornaiion includcd in oral siaicncnis or oiIcr wriiicn
siaicncnis nadc, or io lc nadc, ly us, coniain, or will coniain, disclosurcs wIicI arc 'forward-looling
siaicncnis'. Invcsiors can gcncrally idcniify forward-looling siaicncnis ly icrninology sucI as ain",
aniicipaic",lclicvc",cccpi",csiinaic",inicnd",plan",projcci",sIall",will",oljcciivc", coniinuc", will",
pursuc", could", nay", sIould", would", or pIrascs of sinilar inpori sinilarly oiIcr words siaicncnis
iIai dcscrilc our siraicgics, oljcciivcs, plans or goals arc also forward-looling siaicncnis. 7Icsc
siaicncnis includc, anong oiIcr iIings, siaicncnis aloui our lusincss siraicgy, narlci posiiion, fuiurc
opcraiions, inconc and rcvcnuc, profiialiliiy, liquidiiy and capiial rcsourccs. 7Icsc forward-looling
siaicncnis arc lascd on our currcni plans and cpcciaiions, spcal only as of iIc daic of iIis Placcncni
Docuncni and arc suljcci io a nunlcr of unccriainiics and risls iIai could significanily affcci our currcni
plans and cpcciaiions and our fuiurc financial condiiion and rcsulis. 7Icsc forward-looling siaicncnis
and any oiIcr projcciions coniaincd in iIis Placcncni Docuncni (wIciIcr nadc ly us or any iIird pariyi
arc prcdiciions and arc noi Iisiorical facis and iIcrcforc, involvc lnown and unlnown risls, unccriainiics
and oiIcr faciors iIai nay causc our aciual rcsulis, pcrfornancc or acIicvcncnis or oiIcr forward-looling
siaicncnis io lc naicrially diffcrcni fron any fuiurc rcsulis, pcrfornancc or acIicvcncnis cprcsscd or
inplicd ly sucI forward-looling siaicncnis or oiIcr projcciions. 7Icsc faciors includc, lui arc noi liniicd
io.

x our aliliiy io sourcc raw naicrials;
x fluciuaiions in crudc oil priccs;
x incrcasc in cncrgy cosis;
x cIangcs in iccInology;
x slowdown in auionoiivc indusiry;
x gcncral ccononic and poliiical cIangcs and cIangcs in laws and rcgulaiions iIai apply io iIc Indian
or glolal indusiry or cnvironncnial rcgulaiions;
x our aliliiy io succcssfully inplcncni our siraicgy, our growiI and cpansion plans; and
iIc oiIcr risl faciors discusscd in iIis Placcncni Docuncni, including iIosc sci foriI in iIc scciion
cniiilcd ' Fisl )aciors' of iIis Placcncni Docuncni.

Addiiional faciors iIai could causc aciual rcsulis, pcrfornancc or acIicvcncnis io diffcr naicrially includc,
lui arc noi liniicd io, iIosc discusscd undcr ' Indust)u Ouc)ucu` , ' Husncss Ouc)ucu` und ' Munugcmcnt`s
Dscusson und Anuuss o{ Fnuncu Condton und Hcsuts o{ Opc)utons` of iIis Placcncni Docuncni.

TIc forward-looling siaicncnis coniaincd in iIis Placcncni Docuncni arc lascd on iIc lclicfs of our
nanagcncni, as wcll as iIc assunpiions nadc ly and infornaiion currcnily availallc io our nanagcncni.
AliIougI wc lclicvc iIai iIc cpcciaiions rcflccicd in sucI forward-looling siaicncnis arc rcasonallc ai
iIis iinc, wc cannoi assurc Invcsiors iIai sucI cpcciaiions will provc io lc corrcci. Civcn iIcsc
unccriainiics, Invcsiors arc cauiioncd noi io placc unduc rcliancc on sucI forward-looling siaicncnis. If
any of iIcsc risls and unccriainiics naicrializcs, or if any of our undcrlying assunpiions provc io lc
incorrcci, our aciual rcsulis of opcraiions or financial condiiion could diffcr naicrially and sulsianiially
fron iIai dcscrilcd Icrcin as aniicipaicd, lclicvcd, csiinaicd or cpccicd. All sulscqucni wriiicn and oral
forward-looling siaicncnis aiiriluiallc io us arc cprcssly qualificd in iIcir cniirciy ly rcfcrcncc io iIcsc
cauiionary siaicncnis.


ENFO5&EMENT OF &,V,L L,$%,L,T,ES

2ur Conpany is a liniicd lialiliiy conpany incorporaicd undcr iIc laws of India. All or sulsianiially all of our
Conpany's Dircciors and scnior nanagcncni arc rcsidcnis of India and all or sulsianiially all of iis asscis and
iIc asscis of our Conpany's Dircciors and scnior nanagcncni arc locaicd in India. As a rcsuli, ii nay noi lc
possillc for Invcsiors io cffcci scrvicc of proccss upon our Conpany or sucI pcrsons ouisidc India, or io cnforcc
judgncnis oliaincd againsi sucI pariics ouisidc India.

Fccogniiion and cnforccncni of forcign judgncnis is providcd for undcr Scciion 13 and Scciion 44A of iIc Codc
of Civil Proccdurc, 1908, of India (iIc Civil Codc"i on a siaiuiory lasis. Scciion 13 of iIc Civil Codc providcs iIai
forcign judgncnis sIall lc conclusivc rcgarding any naiicr dirccily adjudicaicd upon, cccpi.

x wIcrc iIc judgncni Ias noi lccn pronounccd ly a couri of conpcicni jurisdiciion;
x wIcrc iIc judgncni Ias noi lccn givcn on iIc ncriis of iIc casc;
x wIcrc ii appcars on iIc facc of iIc procccdings iIai iIc judgncni is foundcd on an incorrcci vicw of
inicrnaiional law or a rcfusal io rccognizc iIc law of India in cascs io wIicI sucI law is applicallc;
x wIcrc iIc procccdings in wIicI iIc judgncni was oliaincd wcrc opposcd io naiural jusiicc;
x wIcrc iIc judgncni Ias lccn oliaincd ly fraud; and
x wIcrc iIc judgncni susiains a clain foundcd on a lrcacI of any law iIcn in forcc in India.

Undcr iIc Civil Codc, a couri in India sIall, upon iIc produciion of any docuncni purporiing io lc a ccriificd
copy of a forcign judgncni, prcsunc iIai iIc judgncni was pronounccd ly a couri of conpcicni jurisdiciion,
unlcss iIc conirary appcars on rccord.

India is noi a pariy io any inicrnaiional ircaiy in rclaiion io iIc rccogniiion or cnforccncni of forcign judgncnis.
Scciion 44A of iIc Civil Codc providcs iIai wIcrc a forcign judgncni Ias lccn rcndcrcd ly a supcrior couri,
wiiIin iIc ncaning of sucI Scciion, in any couniry or icrriiory ouisidc India wIicI iIc Covcrnncni Ias ly
noiificaiion dcclarcd io lc a rcciprocaiing icrriiory, ii nay lc cnforccd in India ly procccdings in cccuiion as if
iIc judgncni Iad lccn rcndcrcd ly iIc rclcvani couri in India. Howcvcr, Scciion 44A of iIc Civil Codc is
applicallc only io nonciary dccrccs noi lcing of iIc sanc naiurc as anounis payallc in rcspcci of iacs, oiIcr
cIargcs of a lilc naiurc or of a finc or oiIcr pcnaliics. TIc Uniicd Kingdon, Singaporc and Hong Kong Iavc lccn
dcclarcd ly iIc C2I io lc rcciprocaiing icrriiorics for iIc purposcs of Scciion 44A.

Scciion 13 of iIc Civil Codc providcs iIai a forcign judgncni sIall lc conclusivc as io any naiicr iIcrcly dirccily
adjudicaicd upon cccpi. (ii wIcrc ii Ias noi lccn pronounccd ly a couri of conpcicni jurisdiciion ; (iii wIcrc ii
Ias noi lccn givcn on iIc ncriis of iIc casc; (iiii wIcrc ii appcars on iIc facc of iIc procccdings io lc foundcd on
an incorrcci vicw of inicrnaiional law or a rcfusal io rccognizc iIc law of India in cascs wIcrc sucI law is
applicallc; (ivi wIcrc iIc procccdings in wIicI iIc judgncni was oliaincd wcrc opposcd io naiural jusiicc; (vi
wIcrc ii Ias lccn oliaincd ly fraud; or (vii wIcrc ii susiains a clain foundcd on a lrcacI of any law in forcc in
India.

A judgncni of a couri of a couniry, iIai is noi a rcciprocaiing icrriiory, nay lc cnforccd only ly a suii upon iIc
judgncni and noi ly procccdings in cccuiion. SucI a suii Ias io lc filcd in India wiiIin iIrcc ycars fron iIc
daic of iIc judgncni in iIc sanc nanncr as any oiIcr suii filcd io cnforcc a civil lialiliiy in India. Ii is unlilcly
iIai a couri in India would award danagcs on iIc sanc lasis as a forcign couri if an aciion was lrougIi in India.
)uriIcrnorc, ii is unlilcly iIai an Indian couri would cnforcc forcign judgncnis if iIai couri wcrc of iIc vicw
iIai iIc anouni of danagcs awardcd was cccssivc or inconsisicni wiiI pullic policy. A pariy sccling io cnforcc
a forcign judgncni in India is rcquircd io oliain approval fron iIc FDI io rcpairiaic ouisidc India any anouni
rccovcrcd pursuani io iIc cccuiion of sucI a judgncni. In addiiion, any judgncni in a forcign currcncy would
lc convcricd inio Indian Fupccs on iIc daic of iIc judgncni and noi on iIc daic of payncni. 2ur Conpany
cannoi prcdici wIciIcr a suii lrougIi in an Indian couri will lc disposcd off in a iincly nanncr or lc suljcci io
considcrallc dclays.

In addiiion, all or sulsianiially all of our asscis arc locaicd in India. 0ajoriiy of our dircciors and officcrs arc
rcsidcnis of India, and all or a sulsianiial poriion of iIcir asscis arc or nay lc locaicd in India. As a rcsuli, ii
nay difficuli for you io cffcci scrvicc of proccss upon sucI pcrsons, or io cnforcc againsi iIcir judgncnis
oliaincd in couris or arliiral irilunals ouisidc India prcdicaicd upon iIc laws of jurisdiciions oiIcr iIan India,
including iIc civil lialiliiy provisions of iIc Uniicd Siaics fcdcral or siaic sccuriiics laws.



GLOSS$5Y OF TE5MS /$%%5EV,$T,ONS

TIc following lisi of dcfincd icrns is inicndcd for iIc convcnicncc of iIc Invcsiors and is noi cIausiivc.
Unlcss iIc conici oiIcrwisc rcquircs or oiIcrwisc spccificd, iIc following words 1 pIrascs 1 allrcviaiions
sIall Iavc iIc following ncaning in iIis Placcncni Docuncni.

&RPSDQ\ UHODWHG WHUPV
7c)m Dcsc)pton
Ariiclcs1Ariiclcs of
Associaiion1A2A
Conpany's Ariiclcs of Associaiion
Doard1Doard of Dircciors Conpany's Doard of Dircciors or a Conniiicc of Dircciors
Conniiicc Conniiicc of Doard of Dircciors
Dircciors Dircciors on iIc Doard of our Conpany unlcss oiIcrwisc spccificd
PCDL,1TIc conpany, Conpany,
wc, us, our
PIillips Carlon Dlacl Liniicd
0cnorandun10cnorandun of
Associaiion102A
TIc 0cnorandun of Associaiion of iIc Conpany
Pronoicr1Pronoicr Croup Adorn Invcsincnis Lid., CHI Invcsincnis Lid., Univcrsal Indusirial )und
Lid., 2ff SIorc India Lid, Hilliop Holdings India Lid., Insiani Holdings Lid.,
Tradc Aparincnis Lid., Harrison 0alayalan )inancial Scrviccs Lid., Spcnccr
& Conpany Lid., Adapi Invcsincnis Lid., 2rganiscd Invcsincnis Lid.,
Sarcgana India Lid., Julilcc Invcsincnis & Indusirics Lid., KEC Holdings
Lid.
Issuc )cutcd tc)ms
Aci1Conpanics aci, TIc Aci TIc Conpanics Aci, 1956 iogciIcr wiiI all ancndncnis and nodificaiions
fron iinc io iinc
Allocaiion1Alloiicd TIc dcicrninaiion of OID's and iIc nunlcr of cquiiy sIarcs io lc alloiicd io
cacI of iIc OIDs for iIc purposc of payncni of lid nonics and sulscqucni
alloincni ai iIc discrciion of iIc conpany in consuliaiion wiiI lool running
nanagcr and in conpliancc wiiI cIapicr VIII of SEDI Fcgulaiions.
Alloincni1 Alloiicd Unlcss oiIcrwisc spccificd, iIc alloincni of cquiiy sIarcs io iIc succcssful
Invcsiors pursuani io iIc issuc
Audiiors Pricc WaicrIousc, CIaricrcd Accounianis
Did An indicaiion of OIDs' inicrcsi including all rcvisions and nodificaiions of
inicrcsi as providcd in iIc lid cun applicaiion forn io sulscrilc io iIc
Conpany's cquiiy sIarcs pursuani io iIc issuc
Did opcning daic )riday, April 23, 2010
Did closing daic Wcdncsday, April 28, 2010
Did cun applicaiion forn TIc forn scni io sclccicd OID's in icrns of wIicI iIc OID io wIon iIc lid
cun applicaiion forn is scni can lid for iIc cquiiy sIarcs in iIc issuc. Any
OID wIicI Ias lid for cquiiy sIarcs nay rcvisc iIc sanc as pcr icrns
coniaincd in iIc said lid cun applicaiion forn
Did pcriod 1issuc pcriod TIc pcriod lciwccn iIc lid opcning daic and lid closing daic inclusivc of
loiI iIc daics during wIicI OID sIall sulnii iIcir lid1s
Diddcr Any OID io wIon a lid cun applicaiion forn is scni in pIysical or in
clccironic forn and wIo Ias lid for cquiiy sIarcs in iIc lid cun applicaiion
forn
Dool Funning Lcad 0anagcr VC Corporaic Advisors Privaic Liniicd
CIapicr VIII CIapicr VIII of SEDI Fcgulaiions, 2009 scis oui iIc norns for qualificd
Insiiiuiional placcncni ly an Indian lisicd conpany
Confirnaiion of allocaiion noic
CAN
Noic or advisc or iniinaiion io OIDs noi norc iIan 49 OIDs confirning iIc
Allocaiion of Equiiy SIarcs io sucI aficr iIc discovcry of iIc offcr pricc
Cui off pricc TIc offcr pricc wIicI sIall lc finaliscd ly iIc conpany in consuliaiion wiiI


iIc Dool Funning Lcad 0anagcr i.c., Fs. 2001-
Dcposiiarics Aci TIc Dcposiiorics Aci, 1996, as ancndcd fron iinc io iinc
Dcposiiory A Dcposiiory rcgisicrcd wiiI SEDI undcr iIc SEDI (Dcposiiorics and
Pariicipanii Fcgulaiions, 1996, as ancndcd fron iinc io iinc.
Dcposiiory Pariicipani A dcposiiory pariicipani as dcfincd undcr iIc Dcposiiorics Aci.
Equiiy SIarcs 2ur Equiiy SIarcs of facc valuc of Fs. 10 cacI, unlcss spccificd
oiIcrwisc in iIc conici iIcrcof.
Equiiy SIarcIoldcrs Pcrsons Iolding Equiiy SIarcs of our Conpany, unlcss oiIcrwisc
spccificd in iIc conici iIcrcof
Escrow Accouni TIc Accouni opcncd wiiI iIc ICICI Danl Lid. in pursuani io iIc Escrow
Agrccncni
Escrow Agrccncni TIc agrccncni cnicrcd inio lciwccn our Conpany, iIc DFL0 and
ICICI Danl Lid. io opcn and opcraic iIc Escrow Accouni in rclaiion io iIc
nonics
)inancial Ycar 1 )iscal1 )Y TIc iwclvc noniIs siariing 1si April of a pariicular ycar and cnding 0arcI
31si of sulscqucni ycar.
)loor Pricc TIc )loor Pricc for iIc Issuc on iIc lasis of CIapicr VIII of iIc SEDI
Fcgulaiions, 2009 is Fs.2001- pcr Equiiy SIarc.
Invcsior1s Any prospcciivc invcsior wIo nalcs a Did pursuani io iIc icrns of iIc
Placcncni Docuncni and iIc Did cun Applicaiion )orn.
Issuc Issuc of 49,64,376 Equiiy SIarcs of Fs.101- cacI io OIDs ly our Conpany ai
a pricc of Fs. 2001- including a prcniun of Fs. 1901-pcr Equiiy SIarc,
pursuani io CIapicr VIII of SEDI Fcgulaiions, 2009.
Issuc 1 2ffcr Pricc A pricc pcr Equiiy SIarc is Fs. 2001- (including a prcniun of Fs. 1901-i
Issuc sizc TIc Issuc of 49,64,376 Equiiy SIarcs for a sun of Fs.9928.75 lalIs
0uiual )und A nuiual fund rcgisicrcd wiiI SEDI undcr iIc SEDI (0uiual )undsi
Fcgulaiions, 1996.
Pay-in Daic Did Closing Daic or iIc lasi daic spccificd in iIc CAN scni io iIc
Diddcrs, as applicallc.
Placcncni docuncni TIc placcncni docuncni daicd 0ay 3, 2010 issucd in accordancc wiiI
CIapicr VIII of iIc SEDI Fcgulaiions, 2009, filcd wiiI iIc Siocl
EcIangcs aficr iIc Issuc and sulscqucnily filcd wiiI SEDI wiiIin
iIiriy days of iIc Alloincni of iIc Equiiy SIarcs for rccord purposcs
only
Prclininary Placcncni
Docuncni
TIc Prclininary Placcncni Docuncni daicd April 21, 2010, issucd in
accordancc wiiI CIapicr VIII of iIc SEDI Fcgulaiions, 2009 and
placcd on our wclsiic and iIc wclsiic of iIc Siocl EcIangcs
Oualificd Insiiiuiional Duycrs 1
OIDs
A Oualificd Insiiiuiional Duycr as dcfincd undcr Fcgulaiion 2(1i(zdi of iIc
SEDI Fcgulaiions.
Fcgisicrcd officc Fcgisicrcd 2fficc of iIc Conpany ai 31, Nciaji SulIas Foad, Kollaia-
700001,Siaic of Wcsi Dcngal, India
Fcgisirar of Conpanics 1 F2C Fcgisirar of Conpanics, Wcsi Dcngal locaicd ai Kollaia
Fcgulaiion S Fcgulaiion S undcr iIc U.S Sccuriiics Aci.
Fclcvani Daic Fclcvani daic for OIP April 21, 2010 (i.c. iIc daic on wIicI iIc Conniiicc
of Dircciors of iIc Doard dccidcd io opcn iIc issuci
Fulc 144 A Fulc 144A of iIc Sccuriiics Aci
SEDI Aci TIc Sccuriiics and EcIangc Doard of India Aci, 1992, as ancndcd
fron iinc io iinc
SEDI Fcgulaiions Sccuriiics and EcIangc Doard of India (Issuc of Capiial and Disclosurc
Fcquircncnisi Fcgulaiions 2009, as ancndcd
Sccuriiics Aci 1 U.S. Sccuriiics
Aci
TIc Uniicd Siaics Sccuriiics Aci of 1933, as ancndcd
Siocl EcIangcs Donlay Siocl EcIangc Liniicd, Naiional Siocl EcIangc of India Liniicd


and TIc Calcuiia Siocl EcIangc Liniicd
Talcovcr Codc Sccuriiics and EcIangc Doard of India (Sulsianiial Acquisiiion of
SIarcs and Talcovcrsi Fcgulaiions, 1997, as ancndcd fron iinc io
iinc
U.S. Sccuriiics Aci U.S. Sccuriiics Aci, 1933 as ancndcd
OtIc) dc{ncd tc)ms
Civil Codc TIc Codc of Civil Proccdurc, 1908.
Crorc Tcn nillion or Iundrcd lalIs
Indian CAAP TIc gcncrally acccpicd accouniing principlcs in India lascd on
Accouniing Siandards, Cuidancc Noics and oiIcr principlcs laid down ly
iIc ICAI
LalI 1 Lacs 100,000 i.c. onc-icniI of a nillion.
2nc nillion. 1,000,000 i.c. Tcn Lacs
Allrcviaiions )ull forn
AC0 Annual Ccncral 0cciing
AS Accouniing Siandards as issucd ly iIc Insiiiuic of CIaricrcd Accounianis of
India
DSE TIc Donlay Siocl EcIangc Liniicd
CACF Conpound Annual CrowiI Faic
CDSL Ccniral Dcposiiory Scrviccs (Indiai Liniicd
CSE TIc Calcuiia Siocl EcIangc Liniicd
DP Dcposiiory pariicipani
EC0 Eiraordinary Ccncral 0cciing
EPS Earnings Pcr SIarc
)DI )orcign Dircci Invcsincni
)E0A TIc )orcign EcIangc 0anagcncni Aci, 1999, as ancndcd fron iinc io iinc, and iIc rulcs
and rcgulaiions francd iIcrc undcr.
)I )inancial Insiiiuiion
)II )orcign Insiiiuiional Invcsior (as dcfincd undcr iIc Sccuriiics and EcIangc Doard
of India ()orcign Insiiiuiional Invcsiorsi Fcgulaiions, 1995i rcgisicrcd wiiI SEDI undcr
applicallc laws in India.
CAAP Ccncrally Acccpicd Accouniing Principlcs
C2I1Coi Covcrnncni of India
IAS Inicrnaiional Accouniing Siandards
ICAI Insiiiuic of CIaricrcd Accounianis of India
I)FS Inicrnaiional )inancial Fcporiing Siandards
I.T. Aci TIc Inconc Ta Aci, 1961, as ancndcd fron iinc io iinc
0) 0uiual )unds
NFI Non-Fcsidcni Indian
NSDL Naiional Sccuriiics Dcposiiory Liniicd
NSE Naiional Siocl EcIangc of India Liniicd
2CDs 2vcrscas Corporaic Dodics
P1E Pricc1Earnings Faiio
PAN Pcrnancni Accouni Nunlcr.
PAT Profii Aficr Ta
FDI TIc Fcscrvc Danl of India.
STT Sccuriiics Transaciion Ta
US 1 USA Uniicd Siaics of Ancrica
VAT Valuc Addcd Ta
Y2Y Ycar on ycar



GLOSS$5Y OF TE&HN,&$L TE5MS

THUP 'HVFULSWLRQ
CD)S Carlon Dlacl )ccd Siocl
CPP Co-gcncraiion Powcr Plani
0TPA 0ciric Ton Pcr Annun
0W 0cga Waii
Kcal Kilo caloric
CD0 Clcan Dcvclopncni 0ccIanisn
CEF Ccriificd Enission Fcduciion
2E0s 2riginal Equipncni 0anufaciurcrs





'ET$,LS OF &OMP$NY SE&5ET$5Y, %OOK 5UNN,NG LE$' M$N$GE5, $N' OTHE5 $'V,SO5S

&OMP$NY SE&5ET$5Y

M5. K$USH,K MUKHE5JEE

31, N. S. Foad,
Kollaia-700 001
Tcl . (033i 2242 0839
)a . (033i 2248 0140
E-nail . lausIiln.pclllid.con

%OOK 5UNN,NG LE$' M$N$GE5

V& &O5PO5$TE $'V,SO5S PVT. LT'.

SEDI FECN. N2. IN0000011096
31, CancsI CIandra Avcnuc,
2
nd
)loor, Suiic No. 2C,
Kollaia 700 013
Tcl . (033i 2225 39401394114116
)a.(033i 2225 3941
Wcl Siic. www.vccorporaic.con
E-nail. - nail.vccorporaic.con
Coniaci Pcrson. 0r. Anup Kunar SIarna

$'V,SO5 TO THE &OMP$NY

SM,FS &$P,T$L M$5KETS L,M,TE'
4, Lcc Foad, 4
iI
floor,
Kollaia 700 020
Tcl. +91-33-2290 7400101102
)a. +91 2287 4042
Enail ID. snifscl.vsnl.nci

$U',TO5S
P5,&E W$TE5HOUSE
CIu)tc)cd Accountunts
Ploi no. Y- 14, EP Dlocl, Sali Lalc Elccironic Conplc,
DidIan Nagar, Kollaia 700 091
Tcl . (033i 2357 9260
)a . (033i 2357 7496

LEG$L $'V,SO5S TO PH,LL,PS &$5%ON %L$&K L,M,TE'
ON ,N',$N L$W

KH$,T$N & &O.

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1D, 2ld Posi 2fficc
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Kollaia-700 001
PI. 033 2248 7000
)a. 033 2248 7656
2nc India Dulls Ccnirc
13
iI
)loor, 841, S. D. 0arg,
ElpIinsionc Foad,
0unlai 400 013
PI. 022 6636 5000
)a. 022 6636 5050



SUMM$5Y OF THE ,SSUE
TIc following is a gcncral sunnary of iIc icrns of iIc Issuc.
,VVXHU PIillips Carlon Dlacl Liniicd
,VVXH SLzH 49,64,376 Equiiy SIarcs of iIc Conpany of Fs.10 cacI for a sun of Fs.9928.75
lalIs
OIIHU SULFH Fs. 2001- (including a prcniun of Fs.1901-i pcr Equiiy SIarc
EOLJLbOH ,QYHVWRUV Oualificd Insiiiuiional Duycrs
EqXLW\ SKDUHV LVVXHG
DQG RXWVWDQGLQJ
LPPHGLDWHO\ SULRU WR DQG
DIWHU WKH ,VVXH
2,82,53,196 Equiiy SIarcs issucd and ouisianding inncdiaicly prior io iIc
Issuc. Inncdiaicly aficr iIc Issuc, 3,32,17,572 Equiiy SIarcs will lc issucd and
ouisianding.
FORRU PULFH TIc )loor Pricc is Fs. 2001- pcr Equiiy SIarc for iIc Issuc on iIc lasis of
CIapicr VIII of iIc SEDI Fcgulaiions
,VVXH PURFHGXUH TIc Issuc is lcing nadc only io OIDs in rcliancc on CIapicr VIII of iIc SEDI
Fcgulaiions. Scc Issuc Proccdurc".
LLVWLQJ 2ur Conpany Ias rcccivcd in-principlc approvals fron DSE on April 19
iI
2010
and fron NSE and CSE on April 20
iI
2010 rcspcciivcly undcr Clausc 24(ai of iIc
Lisiing Agrccncni for iIc lisiing of iIc Equiiy SIarcs on iIc Siocl EcIangcs.
TUDQVIHUDbLOLW\
5HVWULFWLRQV
TIc Equiiy SIarcs lcing alloiicd pursuani io iIis Issuc sIall noi lc sold for a
pcriod of onc ycar fron iIc daic of Alloincni cccpi on a rccognizcd siocl
ccIangc in India. Plcasc rcfcr io iIc scciion iiilcd Disiriluiion and
Soliciiaiion Fcsiriciions" and Transfcr Fcsiriciions" rclaiing io iIc salc of iIc
Equiiy SIarcs"
5DQkLQJ TIc Equiiy SIarcs lcing issucd sIall lc suljcci io iIc provisions of
conpany's 0cnorandun and Ariiclcs of Associaiion and sIall ranl
pari-passu in all rcspccis wiiI iIc cisiing Equiiy SIarcs including
rigIis in rcspcci of dividcnds. TIc sIarcIoldcrs will lc cniiilcd io
pariicipaic in dividcnds and oiIcr corporaic lcncfiis, if any, dcclarcd
aficr iIc daic of Alloincni, in conpliancc wiiI iIc Conpanics Aci.
SIarcIoldcrs nay aiicnd and voic in sIarcIoldcrs' ncciings.

LRFk US
2ur Conpany Ias agrccd wiiI iIc Dool Funning Lcad 0anagcr, iIai ii sIall noi,
and sIall noi announcc an inicniion io, wiiIoui iIc prior wriiicn conscni of iIc
Dool Funning Lcad 0anagcr during iIc pcriod conncncing on iIc daic of iIc
Placcncni Agrccncni and cnding 45 days aficr iIc daic of Alloincni of iIc
Equiiy SIarcs pursuani io iIc Issuc, dirccily or indirccily.

a. issuc, offcr, lcnd, scll, coniraci io scll, plcdgc, cncunlcr, scll any opiion or
coniraci io purcIasc, purcIasc any opiion or coniraci io scll, grani any
opiion, rigIi or warrani io purcIasc, nalc any sIori salc, lcnd or
oiIcrwisc iransfcr or disposc of any Equiiy SIarcs, including lui noi
liniicd io any opiions or warranis io purcIasc any Equiiy SIarcs, or any
sccuriiics convcriillc inio or ccrcisallc or ccIangcallc for, or iIai
rcprcscni iIc rigIi io rcccivc, Equiiy SIarcs;
l. cnicr inio any swap or oiIcr agrccncni iIai iransfcrs, dirccily or
indirccily, in wIolc or in pari, any of iIc ccononic conscqucnccs of
owncrsIip of iIc Equiiy SIarcs or any sccuriiics convcriillc inio or
ccrcisallc or ccIangcallc for Equiiy SIarcs;
c. dcposii any Equiiy SIarcs, or any sccuriiics convcriillc inio or ccrcisallc
or ccIangcallc for iIc Equiiy SIarcs or wIicI carry iIc rigIis io
sulscrilc for or purcIasc Equiiy SIarcs, in any dcposiiary rcccipi faciliiy
or cnicr inio any iransaciion (including a iransaciion involving dcrivaiivcsi
Iaving an ccononic cffcci sinilar io iIai of a salc or dcposii of Equiiy
SIarcs in any dcposiiary rcccipi faciliiy; or
d. announcc any inicniion io cnicr inio any iransaciion dcscrilcd in (ai, (li
or (ci alovc, wIciIcr any sucI iransaciion dcscrilcd in (ai, (li or (ci alovc
is io lc sciilcd ly dclivcry of iIc Equiiy SIarcs, or sucI oiIcr sccuriiics,
in casI or oiIcrwisc, providcd iIai iIc forcgoing rcsiriciions sIall noi
apply io (ii iIc Issuc SIarcs; (iii any Equiiy SIarcs io lc issucd upon iIc


ccrcisc of an opiion undcr any cnploycc siocl opiion plans or scIcncs
cisiing on iIc daic Icrcof and as dcscrilcd in iIc Prclininary Placcncni
Docuncnis and (iiii issuc of warranis and Equiiy SIarcs pursuani io iIc
approval of iIc SIarcIoldcrs wIo Iavc ly way of posial lalloi on April16,
2010, approvcd iIc Prcfcrcniial Issuc of upio 12,50,000 warranis
convcriillc inio cqual nunlcr Equiiy SIarcs ai a floor pricc of Fs. 1961-
calculaicd in accordancc wiiI CIapicr VII of iIc SEDI Fcgulaiions for a
sun of noi ccccding Fs. 2450 lalIs io iIc Pronoicr 1 Pronoicr Croup of
our Conpany.

TIc Pronoicrs and Pronoicr Croup of our Conpany Iavc agrccd wiiI iIc Dool
Funning Lcad 0anagcr, iIai wiiIoui iIc prior wriiicn conscni of iIc Dool
Funning Lcad 0anagcr, cacI of iIcn will noi, and will noi announcc any
inicniion io, during iIc pcriod conncncing on iIc daic of iIc Placcncni
Agrccncni and cnding 45 days aficr iIc daic of Alloincni of iIc Equiiy SIarcs
pursuani io iIc Issuc, dirccily or indirccily, issuc, offcr, lcnd, scll, coniraci io
scll, plcdgc, cncunlcr, scll any opiion or coniraci io purcIasc, purcIasc any
opiion or coniraci io scll, grani any opiion, rigIi or warrani io purcIasc, nalc
any sIori salc, lcnd or oiIcrwisc iransfcr or disposc of any Equiiy SIarcs,
including lui noi liniicd io any opiions or warranis io purcIasc any Equiiy
SIarcs, or any sccuriiics convcriillc inio or ccrcisallc or ccIangcallc for, or
iIai rcprcscni iIc rigIi io rcccivc, Equiiy SIarcs or cnicr inio any swap or oiIcr
agrccncni iIai iransfcrs, dirccily or indirccily, in wIolc or in pari, any of iIc
ccononic conscqucnccs of owncrsIip of iIc Equiiy SIarcs or any sccuriiics
convcriillc inio or ccrcisallc or ccIangcallc for Equiiy SIarcs or dcposii any
Equiiy SIarcs, or any sccuriiics convcriillc inio or ccrcisallc or ccIangcallc
for iIc Equiiy SIarcs or wIicI carry iIc rigIis io sulscrilc for or purcIasc
Equiiy SIarcs, in any dcposiiary rcccipi faciliiy or cnicr inio any iransaciion
(including a iransaciion involving dcrivaiivcsi Iaving an ccononic cffcci sinilar
io iIai of a salc or dcposii of Equiiy SIarcs in any dcposiiary rcccipi faciliiy,
providcd iIai iIc rcsiriciions coniaincd alovc would noi apply io any salc,
iransfcr or disposiiion of Equiiy SIarcs or any sccuriiics convcriillc inio or
ccrcisallc or ccIangcallc for Equiiy SIarcs io iIc cicni rcquircd undcr
applicallc law or rcgulaiion, or arising oui of iIc cnforccncni of any plcdgcs of
Equiiy SIarcs Icld ly iIc Pronoicrs and Pronoicr Croup of our Conpany
cisiing as on iIc daic of iIc Placcncni Agrccncni or wIicI nay lc rcquircd in
conncciion wiiI plcdgcs crcaicd in iIc fuiurc, in conncciion wiiI any lorrowings
of our Conpany providcd iIai iIc Pronoicrs and Pronoicrs Croup of our
Conpany nay iransfcr SIarcs and oiIcr sccuriiics anongsi iIc ncnlcrs of iIc
Pronoicrs and Pronoicr Croup of our Conpany wIo Iavc lccn classificd as
Pronoicr Croup as pcr filing nadc undcr Clausc 35 of iIc Lisiing Agrccncni io
iIc Siocl EcIangcs or ncwly inducicd as consiiiucnis of Pronoicr Croup ly
2ur Conpany.
UVH RI PURFHHGV TIc ioial procccds of iIc Issuc is Fs. 9928.75 lacs.
To accclcraic furiIcr growiI, fund various cpansion plans, long icrn worling
capiial rcquircncnis, nornal lusincss opcraiions, io rcpay iIc dclis, io financc
invcsincni opporiuniiics and for any oiIcr uscs iIai nay lc pcrnissillc undcr
applicallc laws. )or furiIcr dciails, plcasc rcfcr io iIc CIapicr iiilcd Usc of
Procccds" of iIis Placcncni Docuncni.
5LVk FDFWRUV Prior io naling an invcsincni dccision in iIis Issuc, scc Fisl )aciors".
SHFXULW\ &RGHV:
,S,N INE 602A01015
%SE &RGH 506590
NSE &RGH PHILIPCAFD
&SE
&RGH %LOOM%E5G
5EUTE5S
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SXPPDU\ RI %XVLQHVV
OYHUYLHZ
PIillips Carlon Dlacl Liniicd (PCDL" or our Conpany"i, pari of iIc FPC Croup of Conpanics, was onc of
iIc pionccrs of iIc carlon llacl indusiry in India.

2ur Conpany, incorporaicd in 1960, siaricd produciion fron Dcccnlcr 1962 using iIc oil furnacc
iccInology, iIc nosi widcly acccpicd nanufaciuring proccss of carlon llacl paicnicd ly iis iIcn
collaloraior and world carlon llacl lcadcr, PIillips Pcirolcun Conpany, USA. TIc collaloraiion wiiI
PIillips Pcirolcun Conpany cndcd in 1978 and our Conpany Ias sincc nadc considcrallc progrcss ly
viriuc of coniinucd cfforis of iccInologisis, cnginccrs and susiaincd F&D aciiviiics.

In 1988 our Conpany cnicrcd inio a iccInical agrccncni wiiI Colunlian CIcnicals Conpany, USA, and
acquircd acccss io iIc nodcrn siaic-of-iIc-ari Carlon Dlacl iccInology. TIis Iclpcd our Conpany in
gaining flcililiiy, lciicr produci rangc, produciion capaciiy and cncrgy conscrvaiion. TIc iccInical
agrccncni cndcd in 1998.

Prcscnily our Conpany Ias insiallcd capaciiy of producing 3,60,000 0ciric Tonncs Pcr Annun (0TPAi of
Carlon Dlacl along wiiI grccn powcr capaciiy of 60.50 0cga Waii (0Wi.

2ur Conpany Ias nanufaciuring faciliiics ai 4 locaiions i.c., Durgapur in Wcsi Dcngal, Palcj and 0undra
in Cujarai and KocIi in Kcrala and a wcll-organizcd disiriluiion nciworl covcring supplics io all iyrc
nanufaciuring uniis, iyrc rc-ircading uniis and oiIcr consuncrs all ovcr iIc couniry. 2ur Conpany is
cpanding carlon llacl capaciiy io ialc advaniagc of iIc growing dcnand and is sciiing up co-gcncraiion
powcr planis io dc-risl lusincss nodcl and lolsicr opcraiing nargins.

2ur Conpany Iad ialcn advaniagc of iIc Elcciriciiy Aci iniroduccd in 2003 io sciup a 12 0W co-
gcncraiion powcr plani (CPPi ai iis Palcj plani during )Y 2005 using iIc off gas cniiicd fron iis carlon
llacl plani (OII GDV"i.

Encouragcd ly iIc succcss of iIc Palcj CPP, our Conpany Ias sci up a 30 0W CPP ai iis Durgapur plani
wIicI conncnccd conncrcial opcraiions fron 1
si
April 2009. 2ur Conpany also Ias a 2.5 0W CPP ai iis
plani locaicd ai KocIi, Kcrala.

2ur conpany Ias furiIcr conplcicd iis Crccnficld projcci locaicd in 0undra (Cujaraii, wiiI a carlon llacl
capaciiy of 90,000 0T wIicI Ias siaricd opcraiions fron 17
iI
2ciolcr 2009 and our Conpany Ias also pui
up a CPP of 16 0W in 0undra wIicI Ias conncnccd conncrcial opcraiion fron 24
iI
Dcccnlcr 2009.

To ncci iIc growing dcnand of carlon llacl, loiI in iIc doncsiic and inicrnaiional narlcis, our
Conpany Ias planncd io furiIcr cpand iis carlon llacl capaciiy ly 50,000 0T ai 0undra. As a rcsuli,
our Conpany's insiallcd capaciiy for Carlon Dlacl will rcacI io 4,10,000 0T.

2ur Conpany Ias also planncd io sci up CPPs (using off gasi aggrcgaiing 16 0W i.c., 10 0W ai KocIi and 6
0W ai 0undra, and io dcconnission iIc cisiing 2.5 0W CPP ai KocIi, Kcrala. Aficr conplciion of iIcsc
cpansions, our Conpany's grccn powcr gcncraiion capaciiy will rcacI 74 0W.

WiiI iIc oljcci io carvc a nicIc in 2vcrscas 0arlcis our Conpany Iad also cnicrcd inio a joini vcniurc
agrccncni wiiI iIrcc sulsidiary conpanics of VinacIcn on 9
iI
0ay 2008 for sciiing up a 1,15,000 0T
carlon llacl faciliiy and a 160W powcr unii in pIascs in Vicinan in wIicI our Conpany sIall Iold 80%
sialc iIrougI a spccial purposc vcIiclc and iIc iIrcc sulsidiary conpanics of VinacIcn would picl up
20% sialc.




5,SK F$&TO5S

An nucstmcnt n tIc Equtu SIu)cs nuoucs u IgI dcg)cc o{ )sI. You sIoud cu)c{uu consdc) u o{ tIc
n{o)muton n tIc Puccmcnt Documcnt, ncudng tIc )sIs und uncc)tuntcs dcsc)Icd Icou, Ic{o)c muIng
un nucstmcnt n ou) Equtu SIu)cs. I{ unu o{ tIc {ooung )sIs uctuuu occu), ou) Iusncss, {nuncu
condton und )csuts o{ opc)utons coud su{{c), tIc t)udng p)cc o{ ou) Equtu SIu)cs coud dccnc, und uou
muu osc u o) pu)t o{ uou) nucstmcnt.

TIc Puccmcnt Documcnt uso contuns {o)uu)d-ooIng stutcmcnts tIut nuouc )sIs und uncc)tuntcs. Ou)
uctuu )csuts coud d{{c) mutc)uu {)om tIosc untcputcd n tIcsc {o)uu)d-ooIng stutcmcnts us u )csut o{
cc)tun {ucto)s, ncudng tIc consdc)utons dcsc)Icd Icou und cscuIc)c n tIc Puccmcnt Documcnt.
P)ospcctuc Inucsto)s sIoud puu pu)tcuu) uttcnton to tIc {uct tIut uc u)c un Indun compunu und u)c suI]cct
to u cgu und )cguuto)u cnu)onmcnt uIcI muu d{{c) n cc)tun )cspccts {)om tIut o{ otIc) count)cs.

TIc )sIs dcsc)Icd Icou u)c not tIc onu oncs )ccuunt to ou) Compunu. Addtonu )sIs not p)cscntu Inoun
to ou) Compunu o) tIut t cu))cntu dccms mmutc)u, muu uduc)scu u{{cct tIc Compunu's Iusncss, {nuncu
condton o) )csuts o{ opc)utons. P)ospcctuc Inucsto)s sIoud puu pu)tcuu) uttcnton to tIc {uct tIut ou)
Compunu s un Indun compunu und s suI]cct to cgu und )cguuto)u cnu)onmcnt tIut muu d{{c) n cc)tun
)cspccts {)om tIut o{ otIc) count)cs. Uncss spcc{cd o) quunt{cd n tIc )ccuunt )sI {ucto)s Icou, uc u)c
not n u poston to quunt{u tIc {nuncu o) otIc) mpcuton o{ unu o{ tIc )sIs mcntoncd Ic)cn undc).

k/^k^ kLAd/NG dC CUk CCMWAN

J As por1 o] our grou1 s1ro1egg, ue ore moK1ng s1gn1]1oon1 1nues1men1s 1o epond produo11on
oopoo11g 1n 1nd1o ond obrood ond 1] ue ore unob1e 1o 1mp1emen1 1ese pro]eo1s 1n o 11me1g
monner, our bus1ness ond resu11s o] opero11ons oou1d be oduerse1g o]]eo1ed.

As pari of our growiI siraicgy, wc plan io novc up iIc Carlon Dlacl valuc cIain ly cpanding inio ncw,
conplcncniary lusincsscs and cpanding our cisiing produciion capaciiy. A lcy focus of iIis siraicgy
involvcs naling sulsianiial invcsincnis in iIc nanufaciuring capaliliiics of our Conpany. TIis cpansion is
lcing cffccicd iIrougI organic growiI and sclcciivc joini vcniurcs, sucI as our joini vcniurc wiiI VinacIcn
for csiallisIing a nanufaciuring faciliiy for a 1,15,000 MT carlon llacl faciliiy and a 16MW powcr unii in
Vicinan in wIicI our Conpany proposcs io Iold 80% sialc iIrougI a spccial purposc vcIiclc and iIc iIrcc
sulsidiary conpanics of VinacIcn would picl up 20% sialc. Our growiI siraicgy iIcrcforc suljccis us io iIc
risls inIcrcni in iIc dcvclopncni of ncw lusincss cnicrpriscs, including iIc nccd io.

x conncrcializc and dcvclop a narlci for our producis and scrviccs;

x dcvclop or oliain iIc ncccssary lnow-Iow io nanufaciurc ncw producis;

x nainizc capaciiy uiilizaiion;

x cpand our inicrnaiional disiriluiion nciworl;

x oliain rcquircd doncsiic and inicrnaiional rcgulaiory approvals on a iincly lasis;

x conplcic projccis on a iincly lasis;

x oliain significani capiial io suppori our growiI siraicgy;

x aiiraci and rciain qualificd iccInical siaff.

Our opcraiions nay also lc affccicd ly prollcns frcqucnily cncounicrcd wiiI iIc usc of ncw iccInologics and
ly iIc conpciiiivc and rcgulaiory cnvironncni in wIicI wc opcraic. TIcrc can lc no assurancc iIai wc will
lc allc io conplcic our plans on scIcdulc or wiiIin ludgci. If narlci condiiions cIangc, if opcraiions do noi


gcncraic sufficicni funds or for any oiIcr rcasons, wc nay dccidc io dclay, nodify or forcgo sonc aspccis of
our growiI siraicgics. Our fuiurc rcsulis of opcraiions nay lc advcrscly affccicd if wc arc unallc io
inplcncni our growiI siraicgics.

2. Our Compong re11es on oer1o1n mo]or supp11ers.

Our Conpany Ias io inpori norc iIan 90% of iIc lasic raw naicrial i.c., carlon llacl fccdsiocl (CDFSi
rcquircd for iis produciion proccss for wIicI ii rclics on vcry fcw vcndors io supply iIc lasic raw naicrial.
Our Conpany Ias noi cnicrcd inio any long icrn supply coniracis wiiI iIc vcndors of iIc lasic raw
naicrials. TIc aliliiy io oliain qualiiy raw naicrial ai conpciiiivc priccs in a iincly nanncr is crucial io our
Conpany's produciion.

Our Conpany inporis norc iIan 90% of iIc ioial CDFS fron a singlc vcndor and iIcrc arc also vcry fcw
vcndors of CDFS around iIc glolc.

If our Conpany is unallc io nainiain lusincss rclaiionsIips wiiI iis najor supplicrs or if our supplicrs arc
unallc or unwilling io coniinuc io supply raw naicrials io us, or iIc qualiiy of iIcir supplics dcicrioraic or
iIcir priccs incrcasc sulsianiially, our Conpany will Iavc io locaic alicrnaiivc sourccs of supply wIicI nay
noi lc availallc in rcquircd quaniiiy or ai rcasonallc pricc and iIis nay affcci our Conpany's fuiurc
pcrfornancc and rcsulis of opcraiions.

S. I1uo1uo11ons 1n orude o11 pr1oes mog oduerse1g o]]eo1 our reuenues ond pro]11s ond ue mog no1
be ob1e 1o 1noreose 1e pr1oes o] our produo1 1n order 1o poss our 1noreosed oos1s o1ong 1o our
ous1omers or mog oue 1o obsorb 1nuen1org 1oss/ ur11e doun on 1e s1ooKs 1] 1e orude o11 pr1oe
drops sudden1g.

Crudc is iIc sourcc of CDFS i.c., iIc lasic raw naicrial rcquircd for iIc produciion proccss of our Conpany.
Fluciuaiions in crudc oil priccs nay advcrscly affcci our rcvcnucs and profiis, and sulsianiial or cicndcd
incrcncni in inicrnaiional priccs for crudc oil will Iavc a naicrial advcrsc cffcci on our financial condiiion,
including our liquidiiy and our aliliiy io financc planncd capiial cpcndiiurc, and our rcsulis of opcraiion.
Hisiorically, inicrnaiional priccs for oil Iavc lccn volaiilc and Iavc fluciuaicd widcly in rcsponsc io cIangcs
in nany faciors. For canplc, aficr a pcriod of a susiaincd and sulsianiial incrcasc in iIc pricc of crudc oil
iIai rcacIcd rccord lcvcls in July 2008, iIc pricc of crudc oil dcclincd significanily during Ociolcr-Dcccnlcr
2008 and Ias lccn incrcasing sincc iIcn. SucI fluciuaiions nay in iurn rcsuli in fluciuaiions in our rcsulis
of opcraiions. Wc do noi and will noi Iavc conirol ovcr iIc faciors affcciing priccs for oil. A fcw of iIcsc
faciors includc.

x glolal and doncsiic ccononic condiiions;
x glolal and rcgional ccononic and poliiical dcvclopncnis in rcsourcc-producing rcgions, pariicularly
iIc Middlc Easi;
x glolal and rcgional supply and dcnand;
x iIc aliliiy of iIc Organizaiion of Pcirolcun Eporiing Counirics and oiIcr oil and gas producing
naiions io sci and nainiain glolal produciion lcvcls and priccs;
x discovcrics of, and conncrcial availaliliiy of, alicrnaiivc fucls ai cIcapcr priccs iIai affcci our rcalizcd
priccs undcr our oil and valuc-addcd producis salcs coniracis;
x Indian and forcign govcrnncnial rcgulaiions and aciions, fiscal or oiIcrwisc, including iariffs on
inporis and sIaring of sulsidics;
x pricc and availaliliiy of ncw iccInology; and
x cnvironncnial condiiions.

Ii is noi possillc io forccasi fuiurc oil produci pricc novcncnis wiiI accuracy and wc nay noi lc allc io pass
iIcsc addcd cosis io our cusioncrs ly incrcasing iIc priccs of our producis wIicI could affcci our profiis.



4. Our Compong oompe1es ogo1ns1 oeop 1mpor1s mo1n1g ]rom C1no, Russ1o, Aus1ro11o ond
3o11ond ond 1o on e1en1 re11es on 1or1]]s 1o e1p 11 oompe1e ogo1ns1 suo 1mpor1s.

Our Conpany conpcics againsi lcss cpcnsivc inporis prcdoninanily originaiing fron CIina, Fussia,
Ausiralia and TIailand. TIc pricc gap lciwccn inporicd carlon llacl and doncsiic carlon llacl priccs Iad
incrcascd significanily wIicI Ias rcsulicd in sIarp incrcasc in inpori of carlon llacl ly various iyrc
conpanics. Toial inporis in iIc quaricr cndcd 31.12.2009 was io iIc iunc of 16,000 ionncs. Our Conpany
Ias io addrcss iIis gap pariicularly for iyrc scgncni wIicI can pui prcssurc on nargins of our Conpany.

TIc Aniidunping duiy (rangcd fron $0.084 pcr lg io $0.423 pcr lgi Ias lccn inposcd on inpori of carlon
llacl fron CIina, Fussia, TIailand and Ausiralia. TIis Ias lccn lcvicd for a pcriod of 5 ycars fron July 30,
2009. TIis will only lc applicallc on carlon llacl uscd in rullcr applicaiion. Ii will incrcasc iIc cosi of
inporicd carlon llacl and iIus safcguard iIc doncsiic carlon llacl indusiry. Howcvcr iIcrc can lc no
assurancc iIai iIcsc iariffs will coniinuc in iIc fuiurc. If iIc iariffs arc rcnovcd and our Conpany is unallc
io cffcciivcly conpcic wiiI rclaiivcly lcss cpcnsivc inporis, our Conpany's pcrfornancc could lc advcrscly
affccicd.

S. 3e 1oss o] or su1doun o] opero11ons o1 our Compong's monu]oo1ur1ng ]oo11111es u111 oue o
mo1er1o1 oduerse e]]eo1 on our bus1ness, ]1nono1o1 oond111on ond resu11s o] opero11ons.

Our Conpany's faciliiics arc suljcci io opcraiing risls, sucI as iIc lrcaldown or failurc of cquipncni, or
proccsscs, pcrfornancc lclow cpccicd lcvcls of ouipui or cfficicncy, olsolcsccncc, naiural disasicrs,
indusirial accidcnis and iIc nccd io conply wiiI iIc dircciivcs of rclcvani govcrnncni auiIoriiics. TIc
occurrcncc of any of iIcsc risls could significanily affcci iis opcraiing rcsulis.

t. Our bus1ness 1s dependen1 on 1e reuenue s1reom ]rom surp1us pouer ]rom CPPs. 1] 1e
preuo111ng ro1e ]or surp1us e1eo1r1o11g ]or meroon1 pouer or b11o1ero1 pouer 1s 1ou or 1e
produo11on o] Corbon B1ooK 1s 1ou u1o u111 o]]eo1 1e ouo111b11g o] O]] Gos, 1en 1e
Compong's opero11ono1 pro]11 oon be oduerse1g o]]eo1ed.


?. Conges 1n 1eono1ogg mog render 1e ourren1 1eono1og1es obso1e1e or requ1re us 1o moKe
subs1on11o1 oop11o1 1nues1men1s.

TIc lusincss of our Conpany is largcly dcpcndcni on iIc iccInology adopicd ly ii. TIc nanufaciuring
proccss in iIc Carlon Dlacl indusiry is pronc io iccInological and proccss cIangcs1 upgradcs, wIicI nay
rcndcr our currcni proccsscs olsolcic. In ordcr io conpcic succcssfully wiiI our conpciiiors, our Conpany
nay lc rcquircd io invcsi sulsianiial suns io adopi ncwcr iccInologics and proccsscs, wIicI nay Iavc an
advcrsc inpaci on iIc lusincss and profiialiliiy of our Conpany.

S. 3ere ore no 1ong-1erm oon1roo1s u11 bugers ond oonges 1n 1e bug1ng po11ern mog o]]eo1
1e pro]11ob1111g o] our Compong.

Our Conpany docs noi Iavc any long-icrn coniracis wiiI iis clicnis and any cIangc in iIc luying paiicrn of
luycrs can advcrscly affcci iIc lusincss of our Conpany. AliIougI wc Iavc saiisfaciory lusincss rclaiions
wiiI our cusioncrs and Iavc rcccivcd coniinucd lusincss fron iIcn in iIc pasi lccausc of our cnpIasis on
qualiiy, iincly sIipncni of goods, aficr salcs scrvicc and aggrcssivc narlciing, iIcrc is no ccriainiy iIai iIc
sanc will coniinuc in iIc ycars io conc and nay affcci our profiialiliiy.



9. Ang ooo1den1 o1 our Compong's ]oo11111es oou1d 1eod 1o proper1g domoge, produo11on 1oss ond
ooo1den1 o1o1ms.

Any accidcni ai our Conpany's nanufaciuring faciliiics could rcsuli in danagcs. Our Conpany could suffcr a
dcclinc in produciion, rcccivc advcrsc pulliciiy and could lc forccd io invcsi addiiional rcsourccs in
addrcssing sucI danagcs, loiI in icrns of iinc and noncy. AliIougI iIc accidcnis ai our Conpany's
faciliiics Iavc lccn Iisiorically, fcw in nunlcr, iIcrc can lc no assurancc iIai iIcrc will noi lc any worl
rclaicd or oiIcr accidcnis in iIc fuiurc. FuriIcrnorc, wIilc issucs arising fron prcvious accidcnis, sucI as
conpcnsaiion and lialiliiy, Iavc lccn anically sciilcd wiiIoui any advcrsc inpaci on produciion or danagc
io our Conpany's faciliiics, iIcrc can lc no guaranicc iIai sucI sciilcncnis will ialc placc ai all iincs in iIc
fuiurc in an anicallc nanncr or iIai accidcnis nay noi rcsuli in liiigaiion and rcgulaiory aciion againsi our
Conpany. Any sucI accidcni and sulscqucni issucs arising fron iIc accidcnis, sucI as conpcnsaiion and
lialiliiy, could Iavc an advcrsc cffcci our lusincss and rcsulis of opcraiion.

JD. Our Compong requ1res oer1o1n reg1s1ro11ons ond perm11s ]rom gouernmen1 ond regu1o1org
ou1or111es 1n 1e ord1norg oourse o] bus1ness ond 1e ]o11ure 1o ob1o1n 1em 1n o 11me1g
monner or o1 o11 mog oduerse1g o]]eo1 our opero11ons.

Our opcraiions rcquirc nuncrous approvals, liccnscs, rcgisiraiions and pcrnissions undcr various laws and
rcgulaiions io opcraic our lusincss, including cnvironncnial and IcaliI and safciy laws and rcgulaiions.
SucI approvals nay lc suljcci io fulfillncni of ccriain condiiions and suljcci io rcvocaiion, rcncwal or
nodificaiion and can rcquirc opcraiional cIangcs, wIicI nay involvc significani cosis or dclays. Failurc io
oliain any naicrial approval or rcncwal iIcrcof or a violaiion of iIc condiiions of approval or of oiIcr lcgal or
rcgulaiory rcquircncnis could rcsuli in sulsianiial fincs, sanciions, pcrnii rcvocaiions, injunciions and1or
plani sIuidowns nay affcci iIc lusincss of our Conpany and iIc Dircciors and Officcrs nay lc suljccicd io
civil or crininal procccdings.

JJ. Our Compong's 1nsuronoe ooueroge mog no1 odequo1e1g pro1eo1 11 ogo1ns1 oer1o1n
opero11ono1 r1sKs 1o or o1o1ms bg 1e emp1ogees, ond 11 mog be sub]eo1 1o 1osses 1o1 m1g1
no1 be oouered 1n uo1e or 1n por1 bg e1s11ng 1nsuronoe ooueroge.

Our Conpany nainiains insurancc for a variciy of risls, including, anong oiIcrs, for risls rclaiing io firc,
lurglary and ccriain oiIcr losscs and danagcs.

TIcrc arc various oiIcr iypcs of risls and losscs for wIicI wc arc noi insurcd, sucI as loss of lusincss,
cnvironncnial lialiliiics and naiural disasicrs, lccausc iIcy arc ciiIcr uninsurallc or noi insurallc on
conncrcially acccpiallc icrns. SIould an uninsurcd loss or a loss in cccss of insurcd liniis occur, wc could
incur lialiliiics, losc capiial invcsicd in iIai propcriy or losc iIc aniicipaicd fuiurc inconc dcrivcd fron iIai
lusincss or propcriy, wIilc rcnaining undcr olligaiions for any indclicdncss or oiIcr financial olligaiions
rclaicd io our lusincss. Any sucI loss could rcsuli in an advcrsc cffcci on our financial condiiions and
prospccis.

J2. Our Compong mog be sub]eo1 1o 1obour unres1, s1oudouns ond 1noreosed uoge oos1s.

Currcnily our Conpany considcrs iis lalour rclaiions io lc good, Iowcvcr iIcrc can lc no assurancc iIai ii
will noi cpcricncc fuiurc disrupiions io iis opcraiions duc io dispuics or oiIcr prollcns wiiI iis cnployccs,
wIicI nay advcrscly affcci iis lusincss and rcsulis of opcraiions.



JS. Ang s1oudoun 1n 1e ro1e o] grou1 o] Au1omo11ue 1ndus1rg or s1oudoun 1n 1e eoonomg
oou1d o]]eo1 our grou1 prospeo1s ond u1o 1n 1urn mog o]]eo1 pro]11s.

Auionoiivc indusiry growiI is linlcd io iIc ccononic growiI1inicrcsi raic and any dccclcraiion in ccononic
growiI1incrcasc in inicrcsi raic will affcci iIc growiI of iIc auionolilc indusiry. Salcs io OEMs arc drivcn in
largc pari ly ncw vcIiclc nanufaciuring raics, wIicI arc prinarily dcicrnincd ly consuncr dcnand for ncw
vcIiclcs. Any slowdown in iIc salc of iwo-wIcclcr and four-wIcclcr vcIiclcs duc io ovcrall ccononic
condiiions, cIangcs in consuncr prcfcrcnccs or oiIcr faciors would lilcly rcsuli in a dccrcasc in our
Conpany's nci salcs and advcrscly affcci iis opcraiing rcsulis.

J4. Comp11onoe u11 ond oonges 1n, so]e1g, eo11 ond enu1ronmen1o1 1ous ond regu1o11ons
mog oduerse1g o]]eo1 our resu11s o] opero11ons ond our ]1nono1o1 oond111on.

Our Conpany is suljcci io a lroad rangc of safciy, IcaliI and cnvironncnial laws and rcgulaiions in our
lusincss opcraiions. Our nanufaciuring faciliiics locaicd in India arc suljcci io Indian laws and govcrnncni
rcgulaiions on safciy, IcaliI and cnvironncnial proicciion. TIcsc laws and rcgulaiions inposc conirols on
our air and waicr discIargcs, noisc lcvcls, sioragc Iandling, discIargc and disposal of cIcnicals, cnploycc
cposurc io Iazardous sulsianccs and oiIcr aspccis of our opcraiions and producis. Wc Iavc incurrcd, and
cpcci io coniinuc io incur, opcraiing cosis io conply wiiI sucI laws and rcgulaiions. In addiiion, wc Iavc
nadc and cpcci io coniinuc io nalc capiial cpcndiiurcs on an ongoing lasis io conply wiiI safciy, IcaliI
and cnvironncnial laws and rcgulaiions.

TIc discIargc of our raw naicrials iIai arc cIcnical in naiurc or of oiIcr Iazardous sulsianccs or oiIcr
polluianis inio iIc air, soil or waicr nay ncvcriIclcss causc us io lc liallc io iIc Covcrnncni of India or iIc
Siaic Covcrnncnis wIcrc our nanufaciuring faciliiics arc locaicd, or io iIird pariics. In addiiion, wc nay lc
rcquircd io incur cosis io rcncdy iIc danagc causcd ly sucI discIargcs or pay fincs or oiIcr pcnaliics for
non-conpliancc.

Safciy, IcaliI and cnvironncnial laws and rcgulaiions in India, in pariicular, Iavc lccn incrcasing in
siringcncy and ii is possillc iIai iIcy will lcconc norc siringcni in iIc fuiurc. Our lusincss is cposcd io
nany cnvironncnial olligaiions wIicI arc oncrous in naiurc. TIc indusiry is considcrcd a polluiing indusiry
across iIc glolc. Any advcrsc cIangc in policy wiiI rcspcci io iIc carlon llacl lusincss, dcpcnding on iIc
naiurc of sucI a policy cIangc, nay affcci our lusincss and profiialiliiy.

TIcrc can lc no assurancc iIai wc will noi lcconc involvcd in fuiurc liiigaiion or oiIcr procccdings or lc
Icld rcsponsillc in any liiigaiion or procccdings rclaiing io safciy, IcaliI and cnvironncnial naiicrs in iIc
fuiurc, iIc cosis of wIicI could lc naicrial. Clcan-up and rcncdiaiion cosis of our siics and rclaicd liiigaiion
could advcrscly affcci our lusincss and profiialiliiy.

Our Conpany nay facc prollcns lilc pcrsonal injury, loss of lifc and danagc io propcriy, wIicI nay lcad io
suspcnsion of opcraiions.

JS. 3e ob]eo1s o] 1e 1ssue ]or u1o ]unds ore be1ng ro1sed oue no1 been oppro1sed bg ong
bonK or ]1nono1o1 1ns111u11on

TIc oljccis for wIicI iIc funds raiscd iIrougI iIc Issuc will lc dcploycd, as siaicd in iIc cIapicr Usc of
Procccds" in iIc Placcncni Docuncni, Ias noi lccn appraiscd ly a lanl or a financial insiiiuiion.
Dcployncni of Issuc procccds would lc ai iIc nanagcncni's discrciion. Any unplanncd najor incrcasc in iIc
fund rcquircncnis or cosi cscalaiion nay inpaci iIc financial pcrfornancc of our Conpany.

Jt. 1] our Compong 1s unob1e 1o o11roo1 ond re1o1n Keg emp1ogees, our opero11ons oou1d be
oduerse1g o]]eo1ed.

Our lusincss sulsianiially dcpcnds on iIc coniinucd scrvicc of our lcy nanagcrial pcrsonncl. TIc loss of iIc
scrviccs of our lcy nanagcrial pcrsonncl could Iavc a naicrial advcrsc cffcci on us. Wc lclicvc iIai iIcrc is a


significani dcnand for pcrsonncl wiiI slills rcquircd in our lusincss arca. Our fuiurc succcss will also
dcpcnd on our aliliiy io aiiraci IigIly slillcd pcrsonncl and scnior nanagcncni profcssionals. Our Conpany
could cpcricncc difficuliy fron iinc io iinc in Iiring iIc pcrsonncl ncccssary io suppori our currcni
lusincss and fuiurc growiI. If our Conpany docs noi succccd in aiiraciing ncw IigI qualiiy cnployccs, our
rcpuiaiion nay lc advcrscly inpacicd and our fuiurc carnings nay lc ncgaiivcly inpacicd.

J?. epreo1o11on o] 1e 1nd1on rupee ogo1ns1 ]ore1gn ourreno1es mog oue on oduerse e]]eo1 on
our resu11s o] opero11ons.

Our Conpany Ias io inpori 90% of iIc raw naicrial i.c., CDFS rcquircncni wIcrcas doncsiic salcs accounis
for ovcr 75% of iIc ioial rcvcnuc wIicI is dcnoninaicd in Indian rupccs. Dcprcciaiion of iIc Indian rupcc
againsi iIc U.S. dollar nay incrcasc iIc Indian rupcc cosi io us of scrvicing and rcpaying our forcign
currcncy worling capiial lorrowings and oiIcr payncnis, and any sucI incrcasc nay Iavc an advcrsc cffcci
on our financial condiiion and rcsulis of opcraiion.

JS. 1] ue ore unob1e 1o eeou1e our epons1on p1ons os epeo1ed, our resu11s o] opero11ons u111
be oduerse1g o]]eo1ed.

Our Conpany's prcscni carlon llacl capaciiy is 3,60,000 Mciric Tonncs Pcr Annun (MTPAi along wiiI grccn
powcr capaciiy of 60.50 MW. Our Conpany Ias planncd io cpand iis Carlon Dlacl nanufaciuring capaciiy
ly an addiiional 50,000 MT ai iis plani locaicd ai Mundra (Cujaraii and io sci up iwo co-gcncraiion grccn
powcr planis aggrcgaiing 16 MW ai iis planis locaicd ai KocIi (10MWi and Mundra (6MWi rcspcciivcly. Our
projccis Iavc long gcsiaiion pcriods duc io iIc proccss involvcd in connissioning.

TIc scIcdulcd conplciion iargcis for our cpansion projccis arc csiinaics and arc suljcci io dclays as a
rcsuli of, anong oiIcr iIings, coniracior pcrfornancc sIorifalls, unforcsccn cnginccring prollcns, dispuic
wiiI worlcrs, {o)cc mu]cu)c cvcnis, availaliliiy of financing, unaniicipaicd cosi incrcascs or cIangcs in scopc
and inaliliiy in oliaining ccriain propcriy rigIis, fucl supply and govcrnncni approvals, any of wIicI could
givc risc io cosi ovcrruns or iIc icrninaiion of projcci's dcvclopncni. TIcrc can lc no assurancc iIai our
projccis will lc conplcicd in iIc iinc cpccicd, or ai all, or iIai iIcir gcsiaiion pcriod will noi lc affccicd ly
any or all of iIcsc faciors. Wc cannoi assurc you iIai all poicniial lialiliiics iIai nay arisc fron dclays or
sIorifall in pcrfornancc, will lc covcrcd or iIai iIc danagcs iIai nay lc claincd fron sucI coniraciors sIall
lc adcquaic io covcr any loss of profiis rcsuliing fron sucI dclays, sIorifalls or disrupiions.

19. 1] ue ore unob1e 1o epond our produo11on ]oo11111es 1o monu]oo1ure odequo1e quon1111es o]
our produo1s, our bus1ness u111 su]]er.

To lc succcssful, our producis nusi lc nanufaciurcd in sufficicni quaniiiics io ncci dcnand, in conpliancc
wiiI rcgulaiory rcquircncnis and ai acccpiallc cosi. TIc cpansion of our produciion faciliiics nay rcquirc
addiiional funds and approval ly rcgulaiory agcncics. Wc nay noi lc allc io cpand our capaciiy on
scIcdulc, csiallisI conncrcially viallc nanufaciuring proccsscs for incrcasing our capaciiy succcssfully io
ncci dcnand for our producis.

Wc nay cncounicr prollcns in rclaiion io iIc following.

x produciion yiclds;

x qualiiy conirol and assurancc;

x sIoriagcs of qualificd pcrsonncl;

x conpliancc wiiI local and inicrnaiional lcgislaiions, rulcs and rcgulaiions;

x produciion and disiriluiion cosis; and



x failurcs or loiilcnccls in produciion proccsscs.

If wc arc unallc io cpand our F&D and produciion capaciiy on scIcdulc or ai all on accouni of any rcason
wIaisocvcr, our lusincss will suffcr.

2D. Our Compong 1s dependen1 on 11rd-por1g 1ronspor1o11on prou1ders ]or 1e supp1g o] rou
mo1er1o1s ond 1e de11uerg o] 11s produo1s.

Our Conpany iypically uscs iIird-pariy iransporiaiion providcrs for iIc supply of nosi of iis raw naicrials
and for dclivcrics of iis producis io cusioncrs. Transporiaiion sirilcs ly ncnlcrs of various Indian iruclcrs'
unions as wcll as iransporiaiion siandard qualiiy issucs, Iavc Iad in iIc pasi, and could in iIc fuiurc, Iavc
an advcrsc cffcci on rcccipi of supplics and our Conpany's aliliiy io dclivcr iis producis in a iincly and cosi
cffcciivc nanncr. Incrcascs in iransporiaiion cosis nay Iavc an advcrsc cffcci on our Conpany's rcsulis of
opcraiions.

k/^k^ A^^CC/Ad W/dn ICkWAkLCCk/NG ^dAdMNd^ /NICkMAd/CN CUCd IkCM CII/C/AL
GCVkNMNdAL WU8L/CAd/CN AN Cdnk /NICkMAd/CN NCd CCNdA/N /N dn/^ WLACMNd CCUMNd

2J. Prospeo11ue 1nues1ors 1n our Compong's qu11g Sores ore oou11oned no1 1o p1ooe undue
re11onoe on ong ]oruord-1ooK1ng s1o1emen1s oon1o1ned 1n 11s P1ooemen1 ooumen1.

TIis Placcncni Docuncni coniains ccriain forward-looling siaicncnis and infornaiion and uscs forward
looling icrninology sucI as aniicipaic", lclicvc", cpcci", nay", ougIi io", sIould", could" or will".
TIcsc siaicncnis covcr, lui arc noi liniicd io, iIc discussion of our Conpany's growiI siraicgy and
cpcciaiions conccrning our Conpany's fuiurc opcraiions, liquidiiy and capiial rcsourccs. Prospcciivc
Invcsiors arc cauiioncd iIai rcliancc on any forward-looling siaicncnis involvcs risl and unccriainiics and
iIai, aliIougI our Conpany lclicvcs iIai assunpiions on wIicI iIc forward-looling siaicncnis arc lascd
arc rcasonallc, any or all of iIosc assunpiions could provc io lc incorrcci and as a rcsuli, iIc forward-
looling siaicncnis lascd on iIosc assunpiions could also lc incorrcci. In iIc ligIi of iIcsc and oiIcr
unccriainiics, iIc inclusion of forward-looling siaicncnis in iIis Placcncni Docuncni sIould noi lc
rcgardcd as rcprcscniaiions ly our Conpany plans or oljcciivcs will lc acIicvcd and prospcciivc Invcsiors
sIould noi placc unduc rcliancc on sucI forward-looling siaicncnis.

22. 3e 1ndus1rg 1n]ormo11on ]rom o]]1o1o1 gouernmen1o1 pub11oo11ons oon1o1ned 1n 11s
P1ooemen1 ooumen1 sou1d no1 be undu1g re11ed upon.

Ccriain infornaiion in iIc scciion Indust)u Ouc)ucu" in iIis Placcncni Docuncni rclaiing io iIc Carlon
Dlacl Indusiry and Powcr Indusiry is dcrivcd fron official govcrnncnial pullicaiions and oiIcr rcscarcI
naicrial. WIilc our Conpany Ias ialcn all rcasonallc carc io cnsurc iIai iIc infornaiion is accuraicly
rcproduccd fron sucI pullicaiions, sucI infornaiion Ias noi lccn indcpcndcnily vcrificd ly our Conpany
and nay lc inconsisicni, inaccuraic, inconplcic or noi updaicd. NciiIcr our Conpany and Dool Funning
Lcad Managcr nor iIcir rcspcciivc dircciors and adviscrs or any oiIcr pariics involvcd in iIc Issuc nalc any
rcprcscniaiion as io iIc accuracy or conplcicncss of sucI infornaiion and, accordingly, sucI infornaiion
sIould noi lc unduly rclicd upon.

2S. Prospeo11ue 1nues1ors ore oou11oned no1 1o p1ooe ong re11onoe on ong 1n]ormo11on no1
prepored or opproued bg our Compong.

Prospcciivc Invcsiors arc cauiioncd iIai our Conpany docs noi acccpi any rcsponsililiiy for iIc accuracy or
conplcicncss of any rcporis or ariiclcs in iIc prcss or oiIcr ncdia rcgarding our Conpany or iIc Issuc
including, in pariicular, any financial projcciions, valuaiions or oiIcr forward looling infornaiion, as sucI
rcporis or ariiclcs Iavc noi lccn prcparcd or approvcd ly our Conpany. Our Conpany nalcs no
rcprcscniaiions as io iIc appropriaicncss, accuracy, conplcicncss or rclialiliiy of any infornaiion including
any projcciions, valuaiions or oiIcr forward-looling infornaiion, or any assunpiions undcrlying sucI
projcciions, valuaiions or oiIcr forward-looling infornaiion includcd in or rcfcrrcd io ly iIc ncdia. To iIc


cicni iIai sucI siaicncnis, if any, arc inconsisicni wiiI, or conflici wiiI, iIc infornaiion coniaincd in iIis
Placcncni Docuncni, our Conpany disclains iIcn. Accordingly, prospcciivc Invcsiors arc cauiioncd noi io
placc any rcliancc on any sucI infornaiion.

k/^k^ kLAd/NG dC /NV^dMNd^ /N /N/A AN /N/AN CCMWAN/^

24. 1] reg1ono1 os111111es, 1error1s1 o11ooKs or soo1o1 unres1 1n 1nd1o ond Sou1 As1o 1noreose,
our Compong's bus1ness oou1d be oduerse1g o]]eo1ed ond 1e 1rod1ng pr1oe o] 1e qu11g
Sores oou1d deoreose.

Tcrrorisi aiiacls and oiIcr acis of violcncc or war including iIosc involving India, iIc Uniicd Siaics or oiIcr
counirics, nay advcrscly affcci iIc Indian and worldwidc financial narlcis. On Novcnlcr 26, 2008, icrrorisis
siagcd a coordinaicd aiiacl on scvcral pronincni inicrnaiional Ioicls and various oiIcr locaiions in iIc
financial ccnicr of Munlai. Fuiurc acis of icrrorisn nay rcsuli in a loss of lusincss confidcncc and Iavc
oiIcr conscqucnccs iIai could advcrscly affcci our Conpany's lusincss, prospccis, financial condiiion and
rcsulis of opcraiions. Incrcascd volaiiliiy in iIc financial narlcis, including ccononic rcccssion, can Iavc an
advcrsc inpaci on iIc ccononics of India and oiIcr counirics.

In addiiion, SouiI Asia Ias fron iinc io iinc cpcricnccd insianccs of civil unrcsi and Iosiiliiics anong
ncigIloring counirics, including lciwccn India and Palisian. Prcscni rclaiions lciwccn India and Palisian
coniinuc io lc fragilc lccausc of issucs sucI as icrrorisn, arnancni and oiIcr poliiical and social naiicrs.

Incrcascd icnsions and Iosiiliiics nay occur in iIc fuiurc and on a widcr scalc. Also, sincc 2003, iIcrc Iavc
lccn niliiary Iosiiliiics, coniinuing civil unrcsi and insialiliiy in Iraq and AfgIanisian. Evcnis of iIis naiurc
in iIc fuiurc, as wcll as social and civil unrcsi wiiIin oiIcr counirics in Asia, could influcncc iIc Indian
cconony ly disrupiing connunicaiions and naling iravcl and iransporiaiion norc difficuli. SucI poliiical
and social icnsions could crcaic a pcrccpiion iIai invcsincnis in Indian conpanics involvc grcaicr dcgrccs of
risl. TIcsc Iosiiliiics and icnsions could lcad io poliiical or ccononic insialiliiy in India and a possillc
advcrsc cffcci on iIc Indian cconony, our Conpany's lusincss, iis fuiurc financial pcrfornancc and iIc
irading pricc of iIc Equiiy SIarcs.

FuriIcr, India Ias also cpcricnccd social unrcsi, connunal disiurlanccs and riois in sonc paris of iIc
couniry during rcccni iincs. If sucI icnsions occur, ii could Iavc an advcrsc cffcci on our Conpany's
lusincss, fuiurc financial pcrfornancc and iIc irading pricc of iIc Equiiy SIarcs.

2S. Po1111oo1 1ns1ob1111g ond s1gn1]1oon1 oonges 1n Gouernmen1 po11og oou1d oduerse1g o]]eo1
eoonom1o oond111ons 1n 1nd1o genero11g ond our Compong's bus1ness 1n por11ou1or.

CIangcs in ccIangc raics and conirols, inicrcsi raics, Covcrnncni policics, iaaiion, social and ciInic
insialiliiy and oiIcr poliiical and ccononic dcvclopncnis in and affcciing India nay Iavc an advcrsc cffcci on
our Conpany's rcsulis of opcraiions.

India Ias a nicd cconony wiiI a largc pullic sccior and an cicnsivcly rcgulaicd privaic sccior. TIc rolc of
iIc Ccniral and iIc Siaic Covcrnncnis in iIc Indian cconony and iIc cffcci on produccrs, consuncrs,
scrvicc providcrs and rcgulaiors Ias rcnaincd significani ovcr iIc ycars. TIc govcrnncnis Iavc in iIc pasi,
anong oiIcr iIings, inposcd conirols on iIc priccs of a lroad rangc of goods and scrviccs, rcsiricicd iIc
aliliiy of lusincsscs io cpand iIcir cisiing capaciiy and rcducc iIc nunlcr of iIcir cnployccs, and
dcicrnincd iIc allocaiion io lusincsscs of raw naicrials and forcign ccIangc. Sincc 1991, succcssivc
Covcrnncnis Iavc pursucd policics of ccononic lilcralizaiion, including significanily rclaing rcsiriciions in
iIc privaic sccior. NcvcriIclcss, iIc rolc of iIc Indian Ccniral and Siaic govcrnncnis in iIc Indian cconony
as produccrs, consuncrs and rcgulaiors Ias rcnaincd significani. TIc currcni coaliiion-lcd Covcrnncni Ias
conc inio powcr in May 2009. TIcrc can lc no assurancc iIai iis pasi lilcralizaiion policics or any poliiical
sialiliiy will coniinuc in iIc fuiurc. Elininaiion or sulsianiial cIangc of sucI policics or iIc iniroduciion of
policics iIai ncgaiivcly affcci our Conpany's lusincss could causc iis rcsulis of opcraiions io suffcr. Any


significani cIangc in India's ccononic lilcralizaiion and dcrcgulaiion policics could disrupi lusincss and
ccononic condiiions in India gcncrally and our Conpany's lusincss in pariicular.

2t. Our Compong's bus1ness ond oo11u111es ore regu1o1ed bg 1e Compe1111on Ao1, 2DD2.

TIc Indian Parliancni Ias cnacicd iIc Conpciiiion Aci, 2002 (iIc CRPSHWLWLRQ $FW"i for iIc purposc of
prcvcniing lusincss praciiccs Iaving an advcrsc cffcci on conpciiiion undcr iIc auspiccs of iIc Conpciiiion
Connission of India, wIicI (oiIcr iIan for ccriain provisions rclaiing io iIc rcgulaiion of conlinaiionsi Ias
rcccnily lcconc cffcciivc. Undcr iIc Conpciiiion Aci, any arrangcncni, undcrsianding or aciion, wIciIcr or
noi fornal or infornal, wIicI causcs or is lilcly io causc an apprcciallc advcrsc cffcci on conpciiiion is void
and aiiracis sulsianiial pcnaliics. Any agrccncni wIicI dirccily or indirccily dcicrnincs purcIasc or salc
priccs, liniis or conirols produciion, sIarcs iIc narlci ly way of gcograpIical arca or narlci or nunlcr of
cusioncrs in iIc narlci is prcsuncd io Iavc an apprcciallc advcrsc cffcci on conpciiiion. Ii is unclcar as io
Iow iIc Conpciiiion Aci and iIc Conpciiiion Connission of India will affcci indusirics in India; any
applicaiion of iIc Conpciiiion Aci io our Conpany nay lc unfavorallc and Iavc a naicrial cffcci on iIc iis
lusincss and rcsulis of opcraiion.

2?. A s1oudoun 1n eoonom1o grou1 1n 1nd1o oou1d oouse our Compong's bus1ness 1o su]]er.

Our Conpany's pcrfornancc and growiI is ncccssarily dcpcndcni on iIc IcaliI of iIc ovcrall Indian
cconony. TIc Indian cconony Ias sIown susiaincd growiI ovcr iIc lasi scvcral ycars wiiI rcal CDP growing
ai 6.6% in iIc Fiscal Ycar 2009, 9.0% in iIc Fiscal Ycar 2008 and 9.6% in iIc Fiscal Ycar 2007. Howcvcr, iIc
growiI in indusirial produciion in India Ias lccn variallc. Any slowdown in iIc Indian cconony could
advcrscly affcci our Conpany's lusincss.

2S. 1nues1ors 1n 1e qu11g Sores mog no1 be ob1e 1o en]oroe o ]udgmen1 o] o ]ore1gn oour1
ogo1ns1 our Compong, 11s d1reo1ors or eeou11ue o]]1oers.

A najoriiy of our Conpany's dircciors and cccuiivc officcrs arc rcsidcnis of India and sulsianiially all of iis
asscis and iIc asscis of iis dircciors and cccuiivc officcrs arc locaicd in India. As a rcsuli, ii nay noi lc
possillc for Invcsiors io.

x cffcci scrvicc of proccss upon our Conpany, iis dircciors and cccuiivc officcrs in counirics ouisidc
India, or
x cnforcc, in Indian couris, judgncnis oliaincd in forcign couris, againsi our Conpany or sucI pcrsons
or cniiiics.

For norc infornaiion on iIc cnforccncni of civil lialiliiics in India, scc En{o)ccmcnt o{ Cu LuItcs".

29. 3ere mog be 1ess oompong 1n]ormo11on ouo11ob1e 1n 1nd1on seour111es morKe1s 1on 1n
seour111es morKe1s 1n o1er more deue1oped ooun1r1es.

TIcrc is a diffcrcncc lciwccn iIc lcvcl of rcgulaiion, disclosurc and noniioring of iIc Indian sccuriiics
narlcis, as wcll as iIc aciiviiics of Invcsiors, lrolcrs and oiIcr pariicipanis, and iIai of narlcis in iIc
Uniicd Siaics and oiIcr norc dcvclopcd ccononics. SEDI is rcsponsillc for cnsuring and inproving
disclosurc and oiIcr rcgulaiory siandards for iIc Indian sccuriiics narlcis. SEDI Ias issucd rcgulaiions on
disclosurc rcquircncnis, insidcr irading and oiIcr naiicrs. TIcrc nay, Iowcvcr, lc lcss pullicly availallc
infornaiion aloui Indian conpanics iIan is rcgularly nadc availallc ly pullic conpanics in norc dcvclopcd
ccononics. As a rcsuli Invcsiors nay Iavc acccss io lcss infornaiion aloui our Conpany's lusincss, rcsulis
of opcraiions and financial condiiion, and iIosc of iis conpciiiors iIai arc lisicd on iIc DSE, iIc NSE and
oiIcr siocl ccIangcs in India on an ongoing lasis iIan Invcsiors nay Iavc in iIc casc of conpanics iIai arc
suljcci io rcporiing rcquircncnis of ccriain oiIcr counirics.



SD. 3e morKe1 uo1ue o] on 1nues1men1 1n 1e qu11g Sores mog ]1uo1uo1e due 1o 1e uo1o11111g
o] 1e 1nd1on seour111es morKe1s.

Indian sccuriiics narlcis arc norc volaiilc iIan and noi conparallc io iIc sccuriiics narlcis in ccriain
counirics wiiI norc dcvclopcd ccononics and capiial narlcis iIan India. Indian siocl ccIangcs Iavc, in
iIc pasi, cpcricnccd significani fluciuaiions in iIc priccs of lisicd sccuriiics.

Indian siocl ccIangcs Iavc cpcricnccd prollcns wIicI, if sucI or sinilar prollcns wcrc io coniinuc or
rccur, could affcci iIc narlci pricc and liquidiiy of iIc sccuriiics of Indian conpanics, including iIc Equiiy
SIarcs. TIcsc prollcns Iavc includcd icnporary ccIangc closurcs, lrolcr dcfaulis, sciilcncni dclays and
sirilcs ly lrolcrs. In addiiion, iIc govcrning lodics of Indian siocl ccIangcs Iavc fron iinc io iinc
inposcd rcsiriciions on irading in ccriain sccuriiics, liniiaiions on pricc novcncnis and nargin
rcquircncnis. Any volaiiliiy in iIc Indian sccuriiics narlcis could Iavc an advcrsc cffcci on iIc pricc of iIc
Equiiy SIarcs.

SJ. 1]]erenoes e1s1 be1ueen 1nd1on GAAP ond o1er ooooun11ng pr1no1p1es suo os 1IRS. 3ese
d1]]erenoes mog be mo1er1o1 1o 1nues1ors' ossessmen1s o] our Compong's ]1nono1o1 oond111on.

Significani diffcrcnccs cisi lciwccn Indian CAAP and oiIcr accouniing principlcs, sucI as U.S. CAAP. Our
Conpany's financial siaicncnis arc prcparcd in accordancc wiiI Indian CAAP. Our Conpany Ias noi
aiicnpicd io quaniify iIc inpaci of IFFS or U.S. CAAP on iIc financial daia includcd in iIis Placcncni
Docuncni, nor Ias our Conpany providcd a rcconciliaiion of iis financial siaicncnis io iIosc of U.S. CAAP or
IFFS. U.S. CAAP and IFFS diffcr in significani rcspccis fron Indian CAAP. Our Conpany Ias nadc no
aiicnpi io quaniify iIc cffcci of any of iIosc diffcrcnccs. Accordingly, iIc dcgrcc io wIicI iIc financial
infornaiion includcd in iIis Placcncni Docuncni will providc ncaningful infornaiion is cniircly dcpcndcni
on iIc rcadcr's lcvcl of faniliariiy wiiI Indian accouniing praciiccs. Any rcliancc ly pcrsons noi faniliar wiiI
Indian accouniing praciiccs on iIc financial disclosurcs prcscnicd in iIis Placcncni Docuncni sIould
accordingly lc liniicd. In naling an invcsincni dccision, Invcsiors nusi rcly upon iIcir own caninaiion of
our Conpany, iIc icrns of iIis Issuc and iIc financial infornaiion coniaincd in iIis Placcncni Docuncni.

S2. Our Compong's ]o11ure 1o suooess]u11g odop1 1IRS e]]eo11ue ]rom Apr11 2DJS oou1d oue o
mo1er1o1 oduerse e]]eo1 on 1e pr1oe o] 11s qu11g Sores.

ICAI, iIc accouniing lody iIai rcgulaics iIc accouniing firns in India, Ias announccd a road nap for iIc
adopiion of, and convcrgcncc wiiI iIc IFFS pursuani io wIicI all pullic conpanics in India will lc rcquircd
io prcparc iIcir annual and inicrin financial siaicncnis undcr IFFS. Dccausc iIcrc is significani lacl of
clariiy on iIc adopiion of and convcrgcncc wiiI IFFS and iIcrc is noi yci a significani lody of csiallisIcd
praciicc on wIicI io draw on forning judgncnis rcgarding iis inplcncniaiion and applicaiion, our Conpany
Ias noi dcicrnincd wiiI any dcgrcc of ccriainiy iIc inpaci iIai sucI adopiion will Iavc on iis financial
rcporiing. TIcrc can lc no assurancc iIai our Conpany's financial condiiion, rcsulis of opcraiions, casI
flows or cIangcs in sIarcIoldcrs' cquiiy will noi appcar naicrially worsc undcr IFFS iIan undcr Indian
CAAP. As our Conpany nalc iis iransiiion io IFFS rcporiing, ii nay cncounicr difficuliics in iIc ongoing
proccss of inplcncniing and cnIancing iis nanagcncni infornaiion sysicns. Morcovcr, iIcrc is incrcasing
conpciiiion for iIc snall nunlcr of IFFS cpcricnccd accouniing pcrsonncl availallc as norc Indian
conpanics lcgin io prcparc IFFS financial siaicncnis. TIcrc can lc no assurancc iIai our Conpany's
adopiion of IFFS will noi advcrscly affcci iis rcporicd rcsulis of opcraiions or financial condiiion and any
failurc io succcssfully adopi IFFS ly April 2013 could Iavc a naicrial advcrsc cffcci on iIc pricc of iIc Equiiy
SIarcs.

SS. Ang doungrod1ng o] 1nd1o's deb1 ro11ng bg on 1n1erno11ono1 ro11ng ogenog oou1d oue o
nego11ue 1mpoo1 on our Compong's bus1ness.

Any advcrsc rcvision io India's crcdii raiing for doncsiic and inicrnaiional dcli ly inicrnaiional raiing
agcncics nay advcrscly inpaci our Conpany's aliliiy io raisc addiiional dcli financing and iIc inicrcsi raics
and oiIcr conncrcial icrns ai wIicI sucI addiiional dcli financing is availallc. TIis could Iavc an advcrsc


cffcci on our Conpany's financial pcrfornancc and iis aliliiy io oliain financing io fund iis growiI on
favorallc icrns or ai all.

S4. I1nono1o1 1ns1ob1111g 1n o1er ooun1r1es, por11ou1or1g emerg1ng morKe1 ooun1r1es, oou1d
d1srup1 our Compong's bus1ness ond o]]eo1 1e pr1oe o] 1e qu11g Sores.

AliIougI ccononic condiiions arc diffcrcni in cacI couniry, Invcsiors' rcaciions io dcvclopncnis in onc
couniry nay Iavc an advcrsc cffcci on iIc sccuriiics of conpanics in oiIcr counirics including India. A loss of
invcsior confidcncc in iIc financial sysicns of oiIcr cncrging narlcis nay causc incrcascd volaiiliiy in
Indian financial narlcis and iIc Indian cconony in gcncral. Any worldwidc financial insialiliiy could also
Iavc a ncgaiivc inpaci on iIc Indian cconony, including iIc novcncni of ccIangc raics and inicrcsi raics
in India. Any financial disrupiion could Iavc an advcrsc cffcci on our Conpany's lusincss, fuiurc financial
pcrfornancc, sIarcIoldcrs' cquiiy and iIc pricc of iIc Equiiy SIarcs.

SS. A 11rd por1g oou1d be preuen1ed ]rom ooqu1r1ng oon1ro1 ouer our Compong beoouse o] 1e
1oKeouer regu1o11ons under 1nd1on 1ou.

Indian ialcovcr rcgulaiions coniain ccriain provisions iIai nay dclay, dcicr or prcvcni a fuiurc ialcovcr or
cIangc in conirol of our Conpany. TIcsc provisions nay discouragc or prcvcni a iIird pariy fron aiicnpiing
io ialc conirol of our Conpany, cvcn if a cIangc in conirol would rcsuli in iIc purcIasc of iIc Equiiy SIarcs
ai a prcniun io iIc narlci pricc or would oiIcrwisc lc lcncficial io iIc Ioldcrs of iIc Equiiy SIarcs. For
norc infornaiion, scc iIc "Sccu)tcs Mu)Ict o{ Indu TuIcouc) Codc".

St. 1nues1ors 1n 1e qu11g Sores mog be res1r1o1ed 1n 1e1r ob1111g 1o eero1se pre-emp11ue
r1g1s under 1nd1on 1ou ond mog be d11u1ed 1n 1e1r ouners1p pos111on o] our Compong.

Undcr iIc Conpanics Aci, 1956, a conpany incorporaicd in India nusi offcr iis Ioldcrs of cquiiy sIarcs
prccnpiivc rigIis io sulscrilc and pay for a proporiionaic nunlcr of cquiiy sIarcs io nainiain iIcir cisiing
owncrsIip pcrccniagcs lcforc iIc issuancc of any ncw cquiiy sIarcs, unlcss iIc prc-cnpiivc rigIis Iavc lccn
waivcd ly adopiion of a spccial rcsoluiion ly Ioldcrs of iIrcc-fouriIs of iIc cquiiy sIarcs wIicI arc voicd on
iIc rcsoluiion or unlcss sucI conpany Ias oliaincd Covcrnncni approval io issuc cquiiy sIarcs wiiIoui
sucI rigIis. Morcovcr, if iIc law of iIc jurisdiciion of an invcsior docs noi pcrnii iIc ccrcisc of sucI
Invcsiors' prc-cnpiivc rigIis wiiIoui our conpany filing an offcring docuncni or rcgisiraiion siaicncni wiiI
iIc applicallc auiIoriiy of sucI jurisdiciion, sucI invcsior will lc unallc io ccrcisc iis prc-cnpiivc rigIis
unlcss our conpany nalcs sucI a filing. To iIc cicni iIai Invcsiors arc unallc io ccrcisc prc-cnpiivc
rigIis granicd in rcspcci of iIc Equiiy SIarcs, iIcir proporiional inicrcsi in our Conpany nay lc rcduccd.

S?. 3rode de]1o11s oou1d oue o nego11ue e]]eo1 on our Compong's bus1ness ond 1e 1rod1ng pr1oe
o] 1e qu11g Sores.

India's iradc rclaiionsIips wiiI oiIcr counirics can influcncc Indian ccononic condiiions. If India's iradc
dcficiis incrcasc or lcconc unnanagcallc, iIc Indian cconony, and conscqucnily our Conpany's lusincss,
fuiurc financial pcrfornancc and iIc irading pricc of iIc Equiiy SIarcs could lc advcrscly affccicd.

SS. An ou1breoK o] on 1n]eo11ous d1seose or ong o1er ser1ous pub11o eo11 oonoerns 1n As1o or
e1seuere oou1d oue o mo1er1o1 oduerse e]]eo1 on our Compong's bus1ness ond resu11s o]
opero11ons.

TIc ouilrcal of an infcciious discasc in Asia or clscwIcrc or any oiIcr scrious pullic IcaliI conccrn sucI as
swinc influcnza around iIc world could Iavc a ncgaiivc inpaci on ccononics, financial narlcis and lusincss
aciiviiics worldwidc, wIicI could Iavc a naicrial advcrsc cffcci on our Conpany's lusincss. AliIougI our
Conpany Ias noi lccn advcrscly affccicd ly sucI ouilrcals, iIcrc can lc no assurancc iIai a fuiurc
ouilrcal of an infcciious discasc or any oiIcr scrious pullic IcaliI conccrn will noi Iavc a naicrial advcrsc
cffcci on iis lusincss.



k/^k^ A^^CC/Ad W/dn dn CU/d ^nAk^ AN dn/^ /^^U

S9. Our Compong u111 oon11nue 1o be oon1ro11ed bg Promo1ers, uose 1n1eres1s mog d1]]er ]rom
1ose o] o1er soreo1ders.

As on 31
si
MarcI 2010, our Pronoicrs and Pronoicr Croup Iolds 53.88% of our Equiiy SIarc Capiial.
Inncdiaicly following conplciion of iIc Issuc iIc Pronoicrs and Pronoicr Croup will Iold 45.83 % of our
Conpany's Equiiy SIarcs. Pronoicrs will lc allc io influcncc najor policy dccisions, including our
Conpany's ovcrall siraicgic and invcsincni dccisions, ly (ii conirolling iIc clcciion of Dircciors and, in iurn,
indirccily conirolling iIc sclcciion of scnior nanagcncni; (iii dcicrnining iIc iining and anouni of dividcnd
payncnis; (iiii dcciding on incrcascs or dccrcascs in sIarc capiial in issuc; (ivi dcicrnining iIc issuancc of
ncw sccuriiics; and (vi approving ncrgcrs, acquisiiions and disposals of our Conpany's asscis or lusincsscs.

TIc inicrcsis of iIc Pronoicrs could lc diffcrcni fron iIc inicrcsis of oiIcr sIarcIoldcrs. Accordingly, iIc
Pronoicrs nay ialc aciions iIai favour iIcir own inicrcsis and wIicI nay noi lc in iIc lcsi inicrcsis of
oiIcr sIarcIoldcrs.

4D. 3ere mog no1 be on oo11ue or 11qu1d morKe1 ]or 1e qu11g Sores, u1o mog oouse 1e
pr1oe o] 1e qu11g Sores 1o ]o11 ond mog 11m11 1nues1ors' ob1111g 1o se11 1e qu11g Sores.

TIc pricc ai wIicI iIc Equiiy SIarcs will iradc aficr iIis Issuc will lc dcicrnincd ly iIc narlciplacc and
nay lc influcnccd ly nany faciors, including.

x Conpany's financial rcsulis and iIc financial rcsulis of iIc conpanics in iIc lusincsscs iis opcraics
in;

x iIc Iisiory of, and iIc prospccis for, our Conpany's lusincss and iIc scciors and indusirics in wIicI
ii conpcics;

x iIc valuaiion of pullicly iradcd conpanics iIai arc cngagcd in lusincss aciiviiics sinilar io our
Conpany's;

x significani dcvclopncnis in India's ccononic lilcralizaiion and dcrcgulaiion policics.

In addiiion, iIc Indian siocl narlci Ias fron iinc io iinc cpcricnccd significani pricc and volunc
fluciuaiions iIai Iavc affccicd iIc narlci priccs for iIc sccuriiics of Indian conpanics. As a rcsuli, Invcsiors
in iIc Equiiy SIarcs nay cpcricncc a dccrcasc in iIc valuc of iIc Equiiy SIarcs rcgardlcss of our Conpany's
opcraiing pcrfornancc or prospccis.

4J. Iu1ure 1ssues or so1es o] our oompong's qu11g Sores mog s1gn1]1oon11g o]]eo1 1e 1rod1ng
pr1oe o] 1e qu11g Sores.

A fuiurc issuc of cquiiy sIarcs ly our Conpany or salc of sIarcs ly any of iis significani sIarcIoldcrs, or iIc
pcrccpiion iIai sucI issucs or salcs nay occur, nay significanily affcci iIc irading pricc of iIc Equiiy SIarcs.
Invcsiors in iIc Equiiy SIarcs will cpcricncc diluiion upon iIc issuc and alloincni of addiiional cquiiy
sIarcs. OiIcr iIan (ii iIc agrccncnis io lc cnicrcd inio ly ccriain of our Conpany's sIarcIoldcrs io noi offcr,
plcdgc, scll, coniraci io scll, purcIasc any opiion or coniraci io scll, grani or scll any opiion, rigIi, coniraci or
warrani io purcIasc, lcnd, nalc any sIori salc or oiIcrwisc iransfcr or disposc of any Equiiy SIarcs for a
ccriain pcriod of iinc as a rcsuli of iIis Issuc, or (iii any rcgulaiory conscni iIai nay lc rcquircd undcr
applicallc law, iIcrc arc no rcsiriciions on our Conpany's aliliiy io issuc furiIcr cquiiy sIarcs, including
any sccuriiics io iIc Pronoicrs, and iIcrc can lc no assurancc iIai our Conpany will noi issuc furiIcr
cquiiy sIarcs in iIc fuiurc. TIc issuc or salc of a largc nunlcr of our Conpany's cquiiy sIarcs ly ii or any of
iis significani sIarcIoldcrs, or iIc pcrccpiion iIai sucI issucs or salcs nay occur, could advcrscly affcci iIc
narlci pricc of iIc Equiiy SIarcs.


42. 3e qu11g Sores ore sub]eo1 1o 1rons]er res1r1o11ons.

TIc Equiiy SIarcs Iavc noi lccn and will noi lc rcgisicrcd undcr iIc Sccuriiics Aci and nay noi lc offcrcd or
sold wiiIin iIc Uniicd Siaics or for iIc accouni or lcncfii of U.S. Pcrsons (as dcfincd in Fcgulaiion S of iIc
Sccuriiics Acii, cccpi pursuani io an ccnpiion fron, or in a iransaciion noi suljcci io, iIc rcgisiraiion
rcquircncnis of iIc Sccuriiics Aci and applicallc siaic sccuriiics laws. Accordingly, iIc Equiiy SIarcs arc
lcing offcrcd and sold (ai in iIc Uniicd Siaics only io pcrsons wIo arc rcasonally lclicvcd io lc qualificd
insiiiuiional luycrs" (as dcfincd in Fulc 144A undcr iIc Sccuriiics Acii pursuani io Scciion 4(2i of iIc
Sccuriiics Aci and (li ouisidc iIc Uniicd Siaics in rcliancc on Fcgulaiion S. TIc Equiiy SIarcs arc noi
iransfcrallc cccpi in accordancc wiiI iIc rcsiriciions dcscrilcd undcr T)uns{c) Hcst)ctons in iIis
Placcncni Docuncni. TIc cligillc sccuriiics alloiicd undcr qualificd insiiiuiions placcncni sIall noi lc sold
ly iIc alloiicc for a pcriod of onc ycar fron iIc daic of alloincni, cccpi on a rccogniscd siocl ccIangc and
iIc alloiiccs can noi cnicr inio any off-narlci irading in rcspcci of iIcsc Equiiy SIarcs. TIis nay affcci iIc
liquidiiy of iIc Equiiy SIarcs in iIc Iands of iIc Invcsiors.

4S. 1nues1ors mog be sub]eo1 1o 1nd1on 1oes or1s1ng ou1 o] oop11o1 go1ns.

Undcr currcni Indian ia laws and rcgulaiions, capiial gains arising fron iIc salc of cquiiy sIarcs in an
Indian conpany arc gcncrally iaallc in India. Any gain rcalizcd on iIc salc of lisicd cquiiy sIarcs on a siocl
ccIangc Icld for norc iIan iwclvc (12i noniIs will noi lc suljcci io capiial gains ia in India if Sccuriiics
Transaciion Ta (STT"i Ias lccn paid on iIc iransaciion. STT will lc lcvicd on and collccicd ly a doncsiic
siocl ccIangc on wIicI iIc cquiiy sIarcs arc sold. Any gain rcalizcd on iIc salc of cquiiy sIarcs in an
Indian conpany Icld for norc iIan iwclvc (12i noniIs wIicI arc sold oiIcr iIan on a rccognizcd siocl
ccIangc and on wIicI no STT Ias lccn paid, will lc suljcci io long icrn capiial gains ia in India. Any gain
rcalizcd on iIc salc of lisicd cquiiy sIarcs Icld for a pcriod of iwclvc (12i noniIs or lcss will lc suljcci io
sIori icrn capiial gains ia in India. FuriIcr, Indian ia on capiial gains nay lc rclicvcd undcr ccriain ia
ircaiics. For furiIcr infornaiion, rcfcr io iIc scciion Tuxuton".

44. 3ere 1s no guoron1ee 1o1 1e qu11g Sores proposed 1o be 1ssued u111 be 11s1ed on 1e BS,
1e NS ond 1e CS 1n o 11me1g monner or o1 o11.

In accordancc wiiI Indian law and praciicc, final approval for iIc lisiing of iIc Equiiy SIarcs in iIc Issuc will
noi lc granicd uniil aficr iIosc Equiiy SIarcs Iavc lccn issucd and alloiicd. Approval will rcquirc all oiIcr
rclcvani docuncnis auiIorizing iIc issuing of Equiiy SIarcs io lc sulniiicd io iIc Siocl EcIangcs. TIcrc
could lc a failurc or a dclay in lisiing iIc Equiiy SIarcs on iIc DSE, iIc NSE and iIc CSE. Any failurc or
dclay in oliaining iIc approval would rcsirici Invcsiors' aliliiy io disposc of iIcir Equiiy SIarcs.

4S. Ang 1rod1ng o1osures o1 1e S1ooK oonges mog oduerse1g o]]eo1 1e 1rod1ng pr1oe o] 1e
qu11g Sores.

TIc rcgulaiion and noniioring of Indian sccuriiics narlcis and iIc aciiviiics of Invcsiors, lrolcrs and oiIcr
pariicipanis diffcr, in sonc cascs significanily, fron iIosc in ccriain oiIcr sccuriiics narlcis. TIc Siocl
EcIangcs Iavc in iIc pasi cpcricnccd prollcns, including icnporary ccIangc closurcs, lrolcr dcfaulis,
sciilcncnis dclays and sirilcs ly lrolcragc firn cnployccs, wIicI, if coniinuing or rccurring, could affcci iIc
narlci pricc and liquidiiy of iIc sccuriiics of Indian conpanics, including iIc Equiiy SIarcs, in loiI
doncsiic and inicrnaiional narlcis. A closurc of, or irading sioppagc on, any of iIc Siocl EcIangcs could
advcrscly affcci iIc irading pricc of iIc Equiiy SIarcs. Hisiorical irading priccs, iIcrcforc, nay noi lc
indicaiivc of iIc priccs ai wIicI iIc Equiiy SIarcs will iradc in iIc fuiurc.





M$RKET PR,CE ,NFORM$T,ON

PCDL is lisicd on iIc CSE, DSE and NSE. TIc Equiiy SIarcs Iavc lccn lisicd sincc 1960.

TIc iallc sci foriI lclow is for iIc pcriods iIai indicaic iIc IigI and low priccs of our Equiiy SIarcs and
also iIc volunc of irading aciiviiy.


1. TIc IigI, low and avcragc narlci priccs of our Equiiy SIarcs during iIc prcccding iIrcc ycars.
BSE

FLQDQFLDO
YHDU
(EQGLQJ
31VW
MDUFK)
DDWH

HLJK

VROXPH
DV RQ
DDWH RI
HLJK
(NR. RI
SKDUHV)

DDWH

LRZ
VROXPH
DV RQ
DDWH RI
LRZ
(NR. RI
SKDUHV)

$YHUDJH
PULFH (*)
2007 2410112007 158.35 93250 1510612006 34.20 4779 85.74
2008 1011212007 297.00 78811 0310412007 119.05 2682 186.69
2009 2910412008 229.80 114883 161312009 26.55 6416 106.18
2010 1210312010 215.60 439063 0110412009 31.70 17901 131.98

(i Avcragc of iIc daily closing priccs for iIc pcriod
Sou)cc. uuu.Iscndu.com
NSE

FLQDQFLDO
YHDU
(EQGLQJ
31VW
MDUFK)
DDWH

HLJK

VROXPH
DV RQ
DDWH RI
HLJK
(NR. RI
SKDUHV)

DDWH

LRZ

VROXPH
DV RQ
DDWH RI
LRZ
(NR. RI
VKDUHV)

$YHUDJH
PULFH (*)
2007 2410112007 158.00 65875 1510612006 35.00 5701 85.74
2008 0711212007 300.00 213680 251312008 115.55 130608 186.91
2009 2910412008 222.00 105553 610312009 24.25 7371 106.28
2010 1210312010 215.70 557428 0110412009 32.20 26721 132.27

(i Avcragc of iIc daily closing priccs for iIc pcriod

Sou)cc. uuu.nscndu.com



2. MoniIly IigI and low priccs on iIc Siocl EcIangcs for iIc si noniIs prcccding iIc daic of filing of
iIis Placcncni Docuncni.
BSE

NSE
MRQWK DDWH HLJK
VROXPH
DV RQ
DDWH RI
HLJK
(NR. RI
SKDUHV)
DDWH LRZ
VROXPH
DV RQ
DDWH RI
LRZ
(NR. RI
SKDUHV)
$YHUDJH
PULFH (*)
Ociolcr
2009 0111012009 188.80 34596 2811012009 159.75 24328 173.30
Novcnlcr
2009 2511112009 179.90 21037 0511112009 138.00 20938 159.72
Dcccnlcr
2009 0311212009 167.00 20701 1711212010 134.00 60973 154.46
January
2010 1810112010 193.70 537849 1310112010 152.10 32048 173.11
Fclruary
2010 0210212010 200.00 129034 1110212010 165.00 58756 185.03
MarcI
2010 1210312010 215.70 557428 2910312010 180.00 25505 194.01
1
si
April
io 29
iI
,
April
2010 2810412010 221.90 713820 0910412010 191.00 22280 202.96
(i Avcragc of iIc daily closing priccs for iIc pcriod
Sou)cc. uuu.nscndu.com, Sou)cc. uuu.Iscndu.com


MRQWK DDWH HLJK
VROXPH
DV RQ
DDWH RI
HLJK
(NR. RI
SKDUHV)
DDWH LRZ
VROXPH
DV RQ
DDWH RI
LRZ
(NR. RI
SKDUHV)
$YHUDJH
PULFH (*)
Ociolcr
2009 0111012009 188.85 25818 3011012009 159.25 8752 173.46
Novcnlcr
2009 2511112009 178.00 14950 0511112009 140.00 8044 159.63
Dcccnlcr
2009 0311212009 167.25 21112 1711212009 133.70 63765 154.27
January
2010 181112010 193.90 472013 0510112010 158.05 58815 172.98
Fclruary
2010 0110212010 200.00 158248 2610212010 174.50 23703 185.05
MarcI
2010 1210312010 215.60 439063 2910312010 176.00 20494 193.87
1
si
April
io 29
iI
,
April
2010 2810412010 221.85 669085 0510412010 191.50 16958 202.29


3. Marlci Pricc on iIc firsi worling day following iIc Doard ncciing approving iIc Oualificd Insiiiuiion
Placcncni i.c., in iIis casc MarcI 11, 2010 and aficr iIc approval of iIc ncnlcrs ly way of Posial
Dalloi on April 16, 2010.

8^ N^
C n L C d
V
N

d
k /

C n L C d
V
N

d
k /






4. Volunc of lusincss iransacicd during iIc lasi si noniIs.























Sou)cc. uuu.Iscndu.com, uuu.nscndu.com

NRWH:
x $V WKHUH LV QR RU LQVLJQLILFDQW WUDGLQJ RQ CSE, SULFH VWDWLVWLFV DUH GLVFORVHG IRU BSE DQG NSE
DQG DUH QRW SURYLGHG IRU CSE.
x In iIc alovc daia providcd, HigI, Low and Avcragc Priccs arc of iIc daily closing priccs.
x In casc of iwo days wiiI sanc closing pricc, iIc daic wiiI IigIcr volunc Ias lccn considcrcd.


BSE NSE
MRQWK
TRWDO VROXPH RI
SHFXULWLHV TUDGHG
(NR. RI SKDUHV)
TRWDO VDOXH RI
SHFXULWLHV
TUDQVDFWHG
(RV. ,Q ODkKV)
TRWDO VROXPH RI
SHFXULWLHV
TUDGHG
(NR. RI SKDUHV)
TRWDO VDOXH RI
SHFXULWLHV
TUDQVDFWHG
(RV. ,Q ODkKV)
Ociolcr
2009



226634


397.43


595275


1026.34
Novcnlcr
2009 151963 244.94 194774
314.41
Dcccnlcr
2009 285537 427.19 388994
584.50
January
2010 1636056 2,958.75 2033434
3631.18
Fclruary
2010 800165 1,515.88 1044828
1978.04
MarcI
2010 1190823 2388.91 1651315

3301.82
Upio 29
iI

April
2010 1974496 4152.66 2738525


5718.23



USE OF PROCEEDS


TIc procccds of iIc Issuc arc Fs.9928.75 lalIs, lcforc dcduciing iIc cpcnscs of iIc Issuc. TIc
procccds of iIc Issuc will lc uscd in conpliancc wiiI applicallc laws io accclcraic furiIcr
growiI, fund various cpansion plans, long icrn worling capiial rcquircncnis, nornal lusincss
opcraiions, io rcpay iIc dclis, io financc invcsincni opporiuniiics and for any oiIcr uscs iIai
nay lc pcrnissillc undcr applicallc laws.

Our nain oljccis clausc and oljccis incidcnial or ancillary io iIc nain oljccis clausc of our
Mcnorandun of Associaiion cnallcs us io undcrialc our cisiing aciiviiics.

In accordancc wiiI iIc policics insiiiuicd ly our Doard, our nanagcncni will Iavc iIc flcililiiy
in dcploying iIc procccds for iIc purposcs ncniioncd alovc. FuriIcr iIc procccds nay also lc
uiilizcd for gcncral corporaic purposcs and ncciing cpcnscs of iIc Issuc. Pcnding uiilizaiion for
iIc purposcs dcscrilcd alovc, wc inicnd io icnporarily invcsi funds in crcdiiworiIy
insiruncnis, including noncy narlci nuiual funds and dcposiis wiiI lanls. SucI invcsincnis
would lc in accordancc wiiI iIc invcsincni policics as approvcd ly iIc Doard fron iinc io iinc.


















CDSLWDOLzDWLRQ SWDWHPHQW


TIc Doard of Dircciors, ai iis ncciing on MarcI 11, 2010, approvcd iIc Issuc and our Conpany's
sIarcIoldcrs, pursuani io a rcsoluiion passcd ly way of posial lalloi on April 16
iI
2010 approvcd iIc
Issuc. Upon iIc conplciion of iIc Issuc, iIc Doard of Dircciors or a conniiicc iIcrcof sIall pass a
rcsoluiion auiIorizing iIc Alloincni of iIc Equiiy SIarcs pursuani io iIis Issuc.

(Fs. in LalIsi

$V RI 31
VW
MDUFK 2009 $V RI
PUH - ,VVXH PRVW - ,VVXH
SKDUHKROGHUV' FXQGV
SIarc capiial 2825.26 3,321.70
Fcscrvcs and Surplus 18993.28 28,425.59
TRWDO SKDUHKROGHUV' FXQGV 21818.54 31,747.29
,QGHbWHGQHVV
Sccurcd Loans 41259.87 41,259.87
Unsccurcd Loans 1295.83 12,95.83
TRWDO ,QGHbWHGQHVV 42555.70 42,555.70

TRWDO CDSLWDOLzDWLRQ 64374.24 74,302.99


x Pursuani io iIc approval of iIc sIarcIoldcrs for iIc Prcfcrcniial Issuc of convcriillc warranis
ly way of posial lalloi on April 16, 2010, iIc Conniiicc of Dircciors Ias considcrcd and
approvcd iIc issuc of 12,50,000 warranis convcriillc inio cqual nunlcr cquiiy sIarcs ai a
pricc of Fs. 1961- calculaicd in accordancc wiiI CIapicr VII of iIc SEDI Fcgulaiions for an
aggrcgaic sun of Fs. 2450 LalIs io iIc consiiiucnis of our Pronoicr 1 Pronoicr Croup.
















EYROYHPHQW RI FDSLWDO VWUXFWXUH

Duildup of iIc cquiiy sIarc capiial of our conpany is as ncniioncd lclow.
YHDU RI
DOORWPHQW
NR. RI
EqXLW\
SKDUH
CXPXODWLYH
NR. RI VKDUHV
CXPXODWLYH
EqXLW\ SKDUH
CDSLWDO
(RV.)
FDFH
VDOXH
(RV.)
CRQVLGHUDWLRQ NDWXUH OI
$OORWPHQW
1960 1250000 1250000 12500000 10 CasI Pullic Issuc
1962 312500 1562500 15625000 10 CasI
FigIis Issuc
issucd in raiio-
1.4
1968 312500 1875000 18750000 10 Donus
Donus Issuc
issucd
in raiio-1.5
1971 187500 2062500 20625000 10 Donus
Donus Issuc
issucd
in raiio-1.10
1975 618750 2681250 26812500 10 Donus
Donus Issuc
issucd
in raiio-3.10
1980 1072500 3753750 37537500 10 Donus
Donus Issuc
issucd
in raiio-2.5
1984 1501500 5255250 52552500 10 Donus
Donus Issuc
issucd in raiio-
2.5
1994 8151279 13406529 134065290 10 CasI
FigIis Issuc
issucd
in raiio-2.3
1998 4346667 17753196 177531960 10
Issuc of sIarcs
on
Analganaiion of
Carlon &
CIcnicals India
Lid. wiiI our Co.
Sanciioncd ly
iIc HigI Couri ai
Calcuiia and
Kcrala

2006
=
3500000 21253196 212531960 10 CasI
Prcfcrcniial
Alloincni
2007
=
4000000 25253196 252531960 10 CasI
Prcfcrcniial
Alloincni
2009
=

3000000 28253196 282531960
10
CasI
Prcfcrcniial
Alloincni
x Our conpany was sci up wiiI a capiial invcsincni of Fs 1.25cr ly issuc of 1250000 cquiiy sIarcs
of Fs 10 cacI fully paid up.
x During iIc ycar 1968, 1971, 1975, 1980 and 1984, our Conpany issucd Donus sIarcs io iIc
cisiing sIarcIoldcrs raising ioial paid up capiial io Fs. 5,25,52,500
Analganaiion of Carlon & CIcnicals India Lid. wiiI our Conpany ai a considcraiion of 1 Equiiy SIarc
issucd for 3 cquiiy sIarcs of Carlon & CIcnicals India Lid. 4346667 Equiiy SIarcs of Fs 101- cacI wcrc
alloiicd pursuani io iIc scIcnc of analganaiion as approvcd ly iIc HigI Couri ai Calcuiia and Kcrala.

=
During iIc ycar 2006, 2007 and 2009 our Conpany alloiicd convcriillc warranis 1 fully paid Equiiy
SIarcs on prcfcrcniial lasis io Pronoicrs and oiIcr Invcsiors.

x Pursuani io iIc approval of iIc sIarcIoldcrs for iIc Prcfcrcniial Issuc of convcriillc warranis
ly way of posial lalloi on 16.04.2010, iIc Conniiicc of Dircciors Ias considcrcd and
approvcd iIc issuc of 12,50,000 warranis convcriillc inio cqual nunlcr cquiiy sIarcs ai a
pricc of Fs. 1961- calculaicd in accordancc wiiI CIapicr VII of iIc SEDI Fcgulaiions for an
aggrcgaic sun of Fs. 2450 LalIs io iIc consiiiucnis of our Pronoicr 1 Pronoicr Croup.


SKDUHKROGLQJ PDWWHUQ
$V RQ 31
VW
MDUFK, 2010
CDWHJRU\ RI
SKDUHKROGHU
NR. RI
SKDUHKROGHUV
TRWDO NR. RI
SKDUHV
TRWDO NR. RI
SKDUHV KHOG LQ
DHPDWHULDOLzHG
FRUP
TRWDO SKDUHKROGLQJ
DV D % RI WRWDO NR. RI
SKDUHV
SKDUHV SOHGJHG RU
RWKHUZLVH
HQFXPbHUHG

$V D % RI
($+B)
$V D % RI
($+B+C)
NXPbHU
RI VKDUHV
$V D
% RI TRWDO
NR. RI
SKDUHV
($) SKDUHKROGLQJ RI
PURPRWHU DQG
PURPRWHU GURXS

(1) ,QGLDQ
Dodics Corporaic 17 15,222,721 12,496,307 53.88 53.88 - -
SXb TRWDO 1? 1S,222,?21 12,496,30? S3.SS S3.SS - -
(2) FRUHLJQ
TRWDO VKDUHKROGLQJ RI
PURPRWHU DQG
PURPRWHU GURXS ($)
1? 1S,222,?21 12,496,30? S3.SS S3.SS - -
(B) PXbOLF
SKDUHKROGLQJ

(1) ,QVWLWXWLRQV
Muiual Funds 1 UTI 10 1,715,975 1,714,373 6.07 6.07 - -
Financial Insiiiuiions 1
Danls
30 3,301 1,949 0.01 0.01 - -
Ccniral Covcrnncni 1
Siaic Covcrnncni(si
1 467,900 467,900 1.66 1.66 - -
Insurancc Conpanics 2 176,455 176,444 0.62 0.62 - -
Forcign Insiiiuiional
Invcsiors
9 1,648,321 1,648,321 5.83 5.83 - -
SXb TRWDO S2 4,011,9S2 4,00S,9S? 14.20 14.20 - -
(2) NRQ-,QVWLWXWLRQV
Dodics Corporaic 606 4,299,550 4,290,922 15.22 15.22 - -
,QGLYLGXDOV - -
Individual
sIarcIoldcrs Iolding
noninal sIarc capiial
24,131 3,793,154 2,860,201 13.43 13.43 - -


up io Fs. 1 lalI
Individual
sIarcIoldcrs Iolding
noninal sIarc capiial
in cccss of Fs. 1 lalI
17 733,618 720,285 2.60 2.60 - -
$Q\ OWKHUV (SSHFLI\) 6S2 192,201 119,9S4 0.6S 0.6S - -
Non Fcsidcni Indians 652 192,201 119,984 0.68 0.68 - -
SXb TRWDO 2S,406 9,01S,S23 ?,991,392 31.92 31.92 - -
TRWDO PXbOLF
VKDUHKROGLQJ (B)
2S,4SS 13,030,4?S 12,000,3?9 46.12 46.12 - -
TRWDO ($)+(B) 2S,4?S 2S,2S3,196 24,496,6S6 100.00 100.00 - -
(C) SKDUHV KHOG b\
CXVWRGLDQV DQG
DJDLQVW ZKLFK
DHSRVLWRU\ RHFHLSWV
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- - - - - - -
TRWDO ($)+(B)+(C) 2S,4?S 2S,2S3,196 24,496,6S6 100.00 100.00 - -

SKDUHKROGLQJ RI PURPRWHU DQG PURPRWHU GURXS DV RQ 31
VW
MDUFK 2010
SO.
NR.
NDPH RI WKH SKDUHKROGHU
TRWDO SKDUHV KHOG
SKDUHV SOHGJHG RU RWKHUZLVH
HQFXPbHUHG
NXPbHU %DJH NXPbHU
% RI
TRWDO
VKDUHV
KHOG
$V D % RI
WRWDO FDSLWDO
1 Adorn Invcsincnis Lid 3,473,749 12.30 -

-

-
2 Univcrsal Indusirial Fund Lid 57,86,262 20.48 -

-

-
3 Off SIorc India Lid 2,039,655 7.22 -

-

-
4 CHI Invcsincnis Lid 1,903,114 6.74 -

-

-
5 Adapi Invcsincnis Lid 854,439 3.02 -

-

-
6 Insiani Holdings Lid 832,805 2.95 -

-

-
7 Tradc Aparincnis Lid 1,71,200 0.61 -

-

-
8
Harrisons Malayalan Financial Scrviccs
Lid
90,383 0.32 -

-

-
19 Spcnccr & Co Lid 70,500 0.25 -

-

-
10

Hilliop Holdings India Lid

214 0.00 -

-

-


11 Organiscd Invcsincnis Lid 150 0.00 -

-

-
12 KEC Holdings Lid 100 0.00 -

-

-
13 Sarcgana India Lid 100 0.00 -

-

-
14 Julilcc Invcsincnis & Indusirics Lid 50 0.00 -

-

-
TRWDO 1S,222,?21 S3.SS -

-

-

SIarcIolding lclonging io iIc caicgory "Pullic" and Iolding norc iIan 1% of iIc Toial No. of
SIarcs as on 31
si
MarcI 2010

SO. NR. NDPH RI WKH SKDUHKROGHU NR. RI SKDUHV
SKDUHV DV %
RI TRWDO NR.
RI SKDUHV
1 CMO Encrging Illiquid (Mauriiiusi Fund 888,688 3.15
2 Silvcrcross Marlciing Pvi Lid 801,600 2.84
3 Lcnd Lcasc Conpany (Indiai Lid 800,000 2.83
4 ICICI Prudcniial Encrging Siar 590,946 2.09
5 Ma Ncw Yorl Lifc Insurancc Conpany Lid 475,428 1.68
6 Kcrala Siaic Indusirial Dcvclopncni Corporaiion 467,900 1.66
7 Man MoIan Danani 400,000 1.42
8 Dang Sccuriiics Pvi Lid 376,837 1.33
9 India Opiina Fund 300,443 1.06
10 Snap Sccuriiics Pvi Lid 300,000 1.06
TRWDO S,401,S42 19.12






D,V,DEND $ND D,V,DEND POL,CY

Undcr iIc Conpanics Aci, unlcss Conpany's Doard rcconncnds iIc payncni of a dividcnd, iIc
sIarcIoldcrs ai a gcncral ncciing Iavc no powcr io dcclarc any dividcnd. TIc sIarcIoldcrs ai a gcncral
ncciing nay dcclarc a lowcr, lui noi IigIcr, dividcnd iIan iIai rcconncndcd ly iIc Doard. Dividcnds arc
gcncrally dcclarcd as a pcrccniagc of iIc par valuc of iIc SIarcs. TIc dividcnd rcconncndcd ly iIc Doard
and approvcd ly iIc sIarcIoldcrs ai a gcncral ncciing is disiriluicd and paid io sIarcIoldcrs in
proporiion io iIc paid-up valuc of iIcir SIarcs as on iIc rccord daic for wIicI sucI dividcnd is payallc. In
addiiion, as is pcrniiicd ly Conpany's Ariiclcs of Associaiion, iIc Doard nay announcc and pay inicrin
dividcnds. Undcr iIc Conpanics Aci, dividcnds can only lc paid in casI io sIarcIoldcrs lisicd on iIc
rcgisicr of sIarcIoldcrs on iIc daic wIicI is spccificd as iIc rccord daic" or lool closurc daic" or io
iIosc sIarcIoldcrs lccping iIcir sIarcs in dcnaicrializcd forn, a lisi of wIicI is providcd ly NSDL and
CDSL. No sIarcIoldcr is cniiilcd io a dividcnd wIilc any licn in rcspcci of unpaid calls on any of Iis
SIarcs is ouisianding. TIc following iallc scis oui, for iIc pcriods indicaicd, iIc dividcnds paid ly our
Conpany.

Ycar Endcd 31
si
MarcI Dividcnd pcr sIarc (Fs.i Toial anouni of Dividcnd
(noici
(Fs. In LalIsi
2007 21- 505.06
2008 41- 1010.13
2009 - -

Noic. Dividcnds ccludc dividcnd disiriluiion ia.

TIc anounis paid as dividcnds in iIc pasi arc noi ncccssarily indicaiivc of our dividcnd policy or dividcnd
anounis, if any, in iIc fuiurc.

FXWXUH DLYLGHQGV

TIc forn, frcqucncy and anouni of fuiurc dividcnds will dcpcnd on our Conpany's rcvcnucs, casI flows,
financial condiiion (including capiial posiiioni and oiIcr faciors and sIall lc ai iIc discrciion of iis Doard
of Dircciors and suljcci io iIc approval of iis SIarcIoldcrs. Our Conpany nay noi dcclarc any dividcnd
iIai is noi rcconncndcd ly iis Doard of Dircciors. No dividcnd nay lc paid cccpi oui of our Conpany's
profiis or pursuani io Scciion 205 of iIc Conpanics Aci and suljcci io oiIcr provisions of iIc Conpanics
Aci and rulcs francd iIcrc undcr and covcnanis wiiI lcndcrs. TIc anounis paid as dividcnds in iIc pasi
arc noi ncccssarily indicaiivc of iIc dividcnd policy of our Conpany or dividcnd anounis, if any, in iIc
fuiurc.


SUMM$RY SELECTED F,N$NC,$L $ND OPER$T,NG D$T$

TIc sunnary financial infornaiion as of and for iIc iIrcc ycars cndcd MarcI 31, 2009, 2008 and 2007 sci
foriI lclow Ias lccn dcrivcd fron our financial siaicncnis includcd clscwIcrc in iIis Placcncni Docuncni.
Our financial siaicncnis arc prcparcd and prcscnicd in accordancc wiiI Indian CAAP. For a sunnary of our
significani accouniing policics and iIc lasis of iIc prcscniaiion of our financial siaicncnis, plcasc rcfcr io
iIc noics io iIc financial siaicncnis includcd in iIis Placcncni Docuncni. TIc sunnary financial
infornaiion sci foriI lclow sIould lc rcad in conjunciion wiiI Managcncni's Discussion and Analysis of
Financial Condiiion and Fcsulis of Opcraiions" and our financial siaicncnis includcd in iIis Placcncni
Docuncni.




BDODQFH SKHHW DV DW 31VW MDUFK, 2009 $V DW As ai
31VW MDUFK, 2009 31si MarcI, 2008
RXSHHV LQ LDkKV Fupccs in LalIs
SOURCES OF FUNDS
SHAFEHOLDEFS' FUNDS
SIarc Capiial 2,S2S.26 2,525.25
Convcriillc Warranis issucd and alloiicd - 447.00
Fcscrvcs and Surplus 1S,993.2S 21,307.38

21,S1S.S4 24,279.63
LOAN FUNDS
Sccurcd Loans 41,2S9.S? 26,457.96
Unsccurcd Loans 1,29S.S3 2,583.41
42,SSS.?0 29,041.37

Dcfcrrcd Ta Lialiliiy (Ncii 1?1.10 3,530.23

64,S4S.34 56,851.23
$PPL,C$T,ON OF FUNDS
FIXED ASSETS
Cross Dlocl 44,04S.S6 45,065.68
Lcss. Dcprcciaiion 21,2S0.69 20,575.23
Nci Dlocl 22,?9?.S? 24,490.45
Capiial Epcndiiurc In Progrcss 3S,2?6.64 13,051.04
61,0?4.S1 37,541.49

INVESTMENTS 3,??6.10 2,805.52
CUFFENT ASSETS, LOANS AND ADVANCES
Invcniorics 12,096.9? 15,528.47
Sundry Dcliors 1S,0?S.62 21,756.76
CasI and Danl Dalanccs ?13.4? 1,506.09
OiIcr Currcni Asscis 4,?S1.?4 4,633.00
Loans and Advanccs 3,6S4.?S 1,547.18
39,322.SS 44,971.50
Lcss.
CUFFENT LIADILITIES AND PFOVISIONS
Lialiliiics 39,?00.19 27,373.49
Provisions - 1,181.80
39,?00.19 28,555.29
NET CUFFENT ASSETS (3??.64) 16,416.21

MISCELLANEOUS EXPENDITUFE (TO THE EXTENT
NOT WFITTEN OFF OF ADJUSTEDi
Payncnis undcr Voluniary Fciircncni ScIcncs ?2.3? 88.01
TOT$L 64,S4S.34 S6,SS1.23




PURILW DQG LRVV $FFRXQW IRU WKH \HDU HQGHG 31VW MDUFK, 2009


YHDU EQGHG
31VW MDUFK,2009 RXSHHV LQ LDkKV
Ycar Endcd
31si MarcI,2008 Fupccs in LalIs
,NCOME
Salcs - Carlon Dlacl 12?,20S.19 114,983.75
Lcss . Ecisc Duiy 12,431.13 13,159.12
114,???.06 101,824.63
Salcs Powcr 1,SS0.?9 1,493.53
OiIcr Inconc 1,632.46 612.22
Closing Siocl of FinisIcd Coods 3,11S.S9 2,114.92
121,0?6.20 106,045.30

EXPEND,TURE

Opcning Siocl of FinisIcd Coods 2,114.92 1,399.13
Faw Maicrials Consuncd 93,999.4? 64,066.26
Epcnscs 23,S?0.S1 25,802.65
Dcprcciaiion 1,963.6? 2,013.59
Financc and OiIcr Epcnscs S,SS?.6S 1,485.23
130,S06.2S 94,766.86
PROF,T / (LOSS) BEFORE
T$X$T,ON
(9?30.0S) 11,278.44
Provision for Taaiion (324S.91) 2,347.59
PROF,T $FTER T$X$T,ON (64S4.14) 8,930.85
Dalancc lrougIi forward fron
prcvious ycar
10,433.S3 3,584.48
Profii availallc for Appropriaiion 3,949.39 12,515.33
Proposcd Dividcnd - 1,010.13
Ta on Proposcd Dividcnd - 171.67
3,949.39 11,333.53
Transfcrrcd io Ccncral Fcscrvc - 900.00
Dalancc Carricd io Dalancc SIcci 3,949.39 10,433.53
Earnings pcr SIarc (Fs.i
- Dasic (24.12) 35.37
- Diluicd (24.12) 34.19






CDVK FORZ SWDWHPHQW IRU WKH \HDU HQGHG 31VW MDUFK, 2009

YHDU EQGHG
31VW MDUFK, 2009
RXSHHV LQ ODkKV
Ycar Endcd
31si MarcI, 2008
Fupccs in lalIs
A. CasI Flow Fron Opcraiing Aciiviiics
Nci Profii lcforc iaaiion

(9,?30.0S)

11,278.44
Adjusincnis for.
Dcprcciaiion

1,963.6?

2,013.59
Loss on salc of ficd asscis (ncii

3?9.6S

39.63

Unrcaliscd (gaini 1 loss (ncii on forcign ccIangc
fluciuaiion

201.09

443.76
Inconc fron Dividcnd

(1??.00)

(155.11i

Inicrcsi (Fcccivcd1 Fcccivallc on Inicr Corporaic
Dcposiis cic.i

(1SS.29)

(78.45i
Profii (ncii on salc of Invcsincni

(1,113.31)

(5.94i
Inicrcsi (Paid1 Payallc on loans cici

2,936.13

1,944.70
Dad Dclis wriiicn off (ncii

4S.64

342.03
Provision for Douliful Dclis (ncii

36.31

113.70
Provision for dininuiion in valuc of invcsincnis

0.10

-

Anoriisaiion of payncnis undcr Voluniary Fciircncni
ScIcncs

S2.S4

67.02


4,139.S6

4,724.93
Opcraiing Profii lcforc Worling Capiial CIangcs

(S,S90.19)

16,003.37
Adjusincnis for.
Invcniorics

3,431.S0

(4,042.64i
Tradc and OiIcr Fcccivallcs

2,S94.?S

(1,059.09i
Tradc Payallcs

11,90S.92

(992.29i


1?,932.1?

(6,094.02i
CasI Ccncraicd fron Opcraiions

12,341.9S

9,909.35
Dircci Tacs Paid (including Ta Dcducicd ai Sourcci

(94?.S2)

(3,326.46i
Payncnis undcr Voluniary Fciircncni ScIcnc

(3?.20)

(51.80i
Nci CasI fron Opcraiing Aciiviiics

11,3S6.96

6,531.09

D. CasI Flow fron Invcsiing Aciiviiics
Payncnis for ficd asscis

(24,34S.3S)

(10,920.21i


Salc procccds of ficd asscis

10?.S9

18.93
PurcIasc of Invcsincni

(S4,939.S3)

(38,775.68i

Invcsincni in PIillips Carlon Dlacl Cyprus Holdings
Lid

(26.1S)

-
Salc of Invcsincni

SS,104.9S

38,781.62
Dividcnd rcccivcd fron Invcsincnis

1??.00

155.11
Inicr Corporaic Dcposiis givcn

(3,??0.00)

(1,000.00i
Inicr Corporaic Dcposiis rcaliscd

3,??0.00

1,132.75
Inicrcsi Fcccivcd OiIcrs

S.3S

139.36
Inicrcsi Fcccivcd on Inicr Corporaic Dcposiis cic.

141.49

122.71
Nci CasI uscd in Invcsiing Aciiviiics

(23,??4.9S)

(10,345.41i
C. CasI Flow fron Financing Aciiviiics
Alloincni noncy (including prcniuni rcccivcd

4,023.04

0.18
Procccds fron long icrn lorrowings

24,466.92

4,218.80
Procccds fron sIori icrn lorrowings

10,1?S.00

4,000.00
Fcdcnpiion of Dclcniurcs

-

(1,000.00i
Fcpayncni of long icrn lorrowings

(2,SS1.93)

(1,543.13i
Fcpayncni of sIori icrn lorrowings

(11,1?S.00)

(3,000.00i

Incrcasc 1 (Dccrcasci in casI crcdii faciliiics, icnporary
ovcrdrafi cic. fron lanls

(?,343.93)

1,332.34
Dividcnds paid (including ia on dividcndi

(1,1?2.4S)

(586.73i
Inicrcsi paid

(4,496.2S)

(2,317.46i
Nci CasI uscd in Financing Aciiviiics

11,62S.40

1,104.00
NHW LQFUHDVH LQ CDVK DQG CDVK EqXLYDOHQWV

(?92.62)

(2,?10.32)
OSHQLQJ CDVK DQG CDVK EqXLYDOHQWV

1,S06.09

4,216.41
CORVLQJ CDVK DQG CDVK EqXLYDOHQWV

?13.4?


1,S06.09




Dalancc SIcci As on 31
si
, MarcI, 2008
SOURCES OF FUNDS
$V DW 31VW MDUFK,
200S
RXSHHV LQ ODkKV
As ai
31si MarcI, 2007
Fupccs in lalIs
SHAFEHOLDEFS' FUNDS
SIarc Capiial 2,S2S.2S 2,525.23
Convcriillc Warranis issucd and alloiicd

44?.00 447.00
Fcscrvcs and Surplus 21,30?.3S 13,608.20
24,2?9.63 16,580.43
LOAN FUNDS
Sccurcd Loans 26,4S?.96 23,154.47
Unsccurcd Loans 2,SS3.41 1,838.21
29,041.3? 24,992.68
Dcfcrrcd Ta Lialiliiy (Ncii 3,S30.23 4,336.65
S6,SS1.23 45,909.76
$PPL,C$T,ON OF FUNDS
FIXED ASSETS
Cross Dlocl 4S,06S.6S 44,717.03
Lcss. Dcprcciaiion 20,S?S.23 18,686.55
Nci Dlocl 24,490.4S 26,030.48
Capiial Epcndiiurc In Progrcss 13,0S1.04 2,107.61
3?,S41.49 28,138.09
INVESTMENTS 2,S0S.S2 2,805.52
CUFFENT ASSETS, LOANS AND ADVANCES

Invcniorics 1S,S2S.4? 11,485.83
Sundry Dcliors 21,?S6.?6 23,366.55
CasI and Danl Dalanccs 1,S06.09 4,216.41
OiIcr Currcni Asscis 4,633.00 2,463.04
Loans and Advanccs 1,S4?.1S 1,402.88
44,9?1.S0 42,934.71
Lcss.
CUFFENT LIADILITIES AND PFOVISIONS
Lialiliiics 2?,3?3.49 27,480.89
Provisions 1,1S1.S0 590.90
2S,SSS.29 28,071.79
NET CUFFENT ASSETS 16,416.21 14,862.92
MISCELLANEOUS EXPENDITUFE (TO THE EXTENT
NOT WFITTEN OFF OF ADJUSTEDi

Payncnis undcr Voluniary Fciircncni ScIcncs SS.01 103.23
S6,SS1.23 45,909.76




PURILW DQG LRVV $FFRXQW IRU WKH \HDU HQGHG 31VW MDUFK, 200S
YHDU EQGHG
31VW MDUFK,200S
RXSHHV LQ LDkKV
Ycar Endcd
31si MarcI,2007
Fupccs in LalIs
,NCOME
Salcs - Carlon Dlacl

114,9S3.?S

111,276.24
Lcss . Ecisc Duiy

13,1S9.12

12,469.05


101,S24.63

98,807.19
Salcs - Powcr

1,493.S3

1,054.62
OiIcr Inconc

612.22

408.69
Closing Siocl of FinisIcd
Coods

2,114.92

1,399.13


106,04S.30

101,669.63
EXPEND,TURE

Opcning Siocl of FinisIcd
Coods

1,399.13

1,998.35
Faw Maicrials Consuncd

64,066.26

67,262.00
Epcnscs

2S,343.1S

22,657.89
Dcprcciaiion

2,013.S9

2,036.48
Inicrcsi

1,944.?0

3,260.27


94,?66.S6

97,214.99
PFOFIT DEFOFE TAXATION

11,2?S.44

4,454.64
Provision for Taaiion

2,34?.S9

2,101.44
PFOFIT AFTEF TAXATION

S,930.SS

2,353.20
Dalancc lrougIi forward
fron prcvious ycar

3,SS4.4S

1,999.18
Profii availallc for
Appropriaiion

12,S1S.33

4,352.38
Proposcd Dividcnd

1,010.13

505.06
Ta on Proposcd Dividcnd

1?1.6?

85.84


11,333.S3

3,761.48
Transfcrrcd io Ccncral
Fcscrvc

900.00

177.00
Dalancc Carricd io Dalancc
SIcci (ScIcdulc 2i

10,433.S3

3,584.48
Earnings pcr SIarc (Fs.i
- Dasic 3S.3? 11.75
- Diluicd 34.19 11.47




CDVK FORZ SWDWHPHQW IRU \HDU HQGHG 31VW MDUFK, 200S

YHDU EQGHG 31VW MDUFK, 200S
RXSHHV LQ ODkKV
Ycar Endcd31si MarcI, 2007 Fupccs
in lalIs
CDVK FORZ FURP OSHUDWLQJ $FWLYLWLHV
Nci Profii lcforc iaaiion

11,2?S.44 4,454.64
Adjusincnis for.
Dcprcciaiion

2,013.S9 2,036.48
Loss on salc of ficd asscis (ncii

39.63 47.10
Unrcaliscd (gaini 1 loss (ncii on forcign ccIangc
fluciuaiion

443.?6 (453.68i
Inconc fron Dividcnd

(1SS.11) (2.87i
Inicrcsi (Fcccivcd1 Fcccivallc on Inicr Corporaic
Dcposiis cic.i

(?S.4S) (62.01i
Profii (ncii on salc of Invcsincni

(S.94) (1.33i
Inicrcsi (Paid1 Payallc on loans cici

1,944.?0 3,260.27
Dad Dclis wriiicn off (ncii

342.03 -
Provision for Douliful Dclis (ncii

113.?0 624.70
Provision for dininuiion in valuc of invcsincnis

- 101.01
Anoriisaiion of payncnis undcr Voluniary
Fciircncni ScIcncs

6?.02 68.14


4,?24.93 5,617.81
OSHUDWLQJ PURILW bHIRUH WRUkLQJ CDSLWDO CKDQJHV

16,003.3? 10,072.45

Adjusincnis for.
Invcniorics

(4,042.64) (2,376.67i
Tradc and OiIcr Fcccivallcs

(1,0S9.09) (1,154.57i
Tradc Payallcs

(992.29) 5,588.63


(6,094.02) 2,057.39
CDVK GHQHUDWHG IURP OSHUDWLRQV

9,909.3S 12,129.84
Dircci Tacs Paid (including Ta Dcducicd ai
Sourcci

(3,326.46) (606.73i
Payncnis undcr Voluniary Fciircncni ScIcnc

(S1.S0) (42.00i
NHW CDVK IURP OSHUDWLQJ $FWLYLWLHV

6,S31.09 11,481.11

CDVK FORZ IURP ,QYHVWLQJ $FWLYLWLHV
Payncnis for ficd asscis

(10,920.21) (2,046.71i
Salc procccds of ficd asscis

1S.93 58.52
PurcIasc of Invcsincni

(3S,??S.6S) (1,650.29i
Salc of Invcsincni

3S,?S1.62 1,651.62
Dividcnd rcccivcd fron Invcsincnis

1SS.11 2.87


Inicr Corporaic Dcposiis givcn

(1,000.00) (1,000.00i
Inicr Corporaic Dcposiis rcaliscd

1,132.?S 1,005.75
Inicrcsi Fcccivcd OiIcrs

139.36 207.48
Inicrcsi Fcccivcd on Inicr Corporaic Dcposiis cic.

122.?1 6.79
NHW CDVK XVHG LQ ,QYHVWLQJ $FWLYLWLHV

(10,34S.41) (1,763.97i

CDVK FORZ IURP FLQDQFLQJ $FWLYLWLHV
Alloincni noncy (including prcniuni rcccivcd

0.1S 5,397.61
Procccds fron long icrn lorrowings

4,21S.S0 10,451.80
Procccds fron sIori icrn lorrowings

4,000.00 21,060.90
Fcdcnpiion of Dclcniurcs

(1,000.00) (1,000.00i
Fcpayncni of long icrn lorrowings

(1,S43.13) (2,983.54i
Fcpayncni of sIori icrn lorrowings

(3,000.00) (31,755.53i
Incrcasc 1 (Dccrcasci in casI crcdii faciliiics,
icnporary

1,332.34 (6,328.99i
ovcrdrafi cic. fron lanls
Dividcnds paid (including ia on dividcndi

(SS6.?3) (3.80i
Inicrcsi paid

(2,31?.46) (3,453.55i
NHW CDVK XVHG LQ FLQDQFLQJ $FWLYLWLHV

1,104.00 (8,615.10i

Nci incrcasc in CasI and CasI Equivalcnis

(2,?10.32) 1,102.04

Opcning CasI and CasI Equivalcnis

4,216.41 3,114.37

Closing CasI and CasI Equivalcnis

1,S06.09
4,216.41








BDODQFH SKHHW DV DW 31
VW
MDUFK,200?

$V DW 31VW MDUFK, 200?
RXSHHV LQ LDkKV
As ai 31si MarcI,2006
Fupccs in LalIs
SRXUFHV RI FXQGV
SHAFEHOLDEFS' FUNDS
SIarc Capiial 2,S2S.23 1,775.15
Convcriillc warranis issucd and alloiicd 44?.00 -
Fcscrvcs and Surplus 13,60S.20 7,645.37
16,SS0.43 9,420.52
LOAN FUNDS
Sccurcd Loans 23,1S4.4? 22,614.92
Unsccurcd Loans 1,S3S.21 13,089.96
24,992.6S 35,704.88
Dcfcrrcd Ta Lialiliiy (Ncii| 4,336.6S 2,834.83
4S,909.?6 47,960.23
$SSOLFDWLRQ RI FXQGV
FIXED ASSETS
Cross Dlocl 44,?1?.03 44,552.26
Lcss. Dcprcciaiion 1S,6S6.SS 16,683.64
Nci Dlocl 26,030.4S 27,868.62
Capiial Epcndiiurc In Progrcss 2,10?.61 351.37
2S,13S.09 28,219.99
INVESTMENTS 2,S0S.S2 2,906.53
CUFFENT ASSETS, LOANS AND ADVANCES
Invcniorics 11,4SS.S3 9,109.16
Sundry Dcliors 23,366.SS 22,211.59
CasI and Danl Dalanccs 4,216.41 3,114.37
OiIcr Currcni Asscis 2,463.04 2,769.86
Loans and Advanccs 1,402.SS 1,805.91
42,934.?1 39,010.89
Lcss.
CUFFENT LIADILITIES AND PFOVISIONS
Lialiliiics 2?,4S0.S9 22,306.55
Provisions S90.90 -
2S,0?1.?9 22,306.55
14,S62.92 16,704.34
MISCELLANEOUS EXPENDITUFE (TO THE
EXTENT NOT WFITTEN OFF OF ADJUSTEDi
Payncnis undcr Voluniary Fciircncni
ScIcncs 103.23 129.37
4S,909.?6 47,960.23




PURILW DQG LRVV $FFRXQW IRU WKH \HDU HQGHG 31VW MDUFK, 200?
,NCOME YHDU EQGHG 31VW MDUFK,200? RXSHHV LQ LDkKV
Ycar Endcd 31si MarcI,2006 Fupccs in
LalIs
Salcs - Carlon Dlacl

111,2?6.24

81,725.09
Lcss . Ecisc Duiy

12,469.0S

9S,S0?.19

9,686.36

72,038.73
Salcs - Powcr

1,0S4.62

825.83
OiIcr Inconc

40S.69

177.01
Closing Siocl of FinisIcd
Coods

1,399.13

101,669.63

1,998.35

75,039.92
EXPEND,TURE
Opcning Siocl of FinisIcd
Coods

1,99S.3S

2,003.10
Faw Maicrials Consuncd

6?,262.00

50,707.05
Epcnscs

22,6S?.S9

19,086.40
Dcprcciaiion

2,036.4S

2,048.01
Inicrcsi

3,260.2?

3,064.97
( Noic 23 on ScIcdulc 17 i


9?,214.99

76,909.53
PFOFIT 1 (LOSSi DEFOFE
TAXATION

4,4S4.64 (1869.61i
Provision for Taaiion
Currcni Ta

S2S.3S

-
Dcfcrrcd Ta (rclcasci1 cIargc

1,S01.S2 (458.41i
Fringc Dcncfii Ta

?4.24

96.04
PFOFIT 1 (LOSSi AFTEF
TAXATION

2,3S3.20 (1507.24i
Dalancc lrougIi forward fron
prcvious ycar 1,999.1S 3,506.42
Profii availallc for
Appropriaiion

4,3S2.3S

1,999.18
Proposcd Dividcnd

S0S.06

-
Ta on Proposcd Dividcnd

SS.S4

-


3,?61.4S

1,999.18
Transfcrrcd io Ccncral Fcscrvc

1??.00

-
Dalancc Carricd io Dalancc
SIcci (ScIcdulc 2i

3,SS4.4S

1,999.18
Earnings1 ( Lossi pcr SIarc
(Fs.i
-Dasic 11.?S (8.49i
-Diluicd 11.4? (8.49i





CDVK FORZ SWDWHPHQW IRU \HDU HQGHG 31VW MDUFK, 200?

YHDU EQGHG 31VW MDUFK, 200?
RXSHHV LQ ODkKV
Ycar Endcd31si MarcI,
2006 Fupccs in lalIs
$. CDVK FORZ FURP OSHUDWLQJ $FWLYLWLHV
Nci Profii 1 (Lossi lcforc iaaiion 4,4S4.64

(1,869.61i
Adjusincnis for.
Dcprcciaiion 2,036.4S 2,048.01
Loss on salc of ficd asscis (ncii 4?.10 18.10

Unrcaliscd (gaini 1 loss (ncii on forcign
ccIangc fluciuaiion

(4S3.6S) 52.31
Inconc fron Dividcnd

(2.S?)

(0.11i

Inicrcsi (Fcccivcd1Fcccivallc on Inicr
Corporaic Dcposiis cic.i

(62.01)

(53.60i
Profii (ncii on salc of Invcsincni

(1.33) -
Inicrcsi (Paid1Payallc on loans cici 3,260.2? 3,064.97
Provision for Douliful Dclis 624.?0 180.00

Provision for dininuiion in valuc of
invcsincnis 101.01 16.00

Anoriisaiion of payncnis undcr Voluniary
Fciircncni ScIcncs 6S.14 62.39
S,61?.S1 5,388.07

OSHUDWLQJ PURILW bHIRUH WRUkLQJ CDSLWDO
CKDQJHV 10,0?2.4S 3,518.46

Adjusincnis for.
Invcniorics

(2,3?6.6?) 1,244.91
Tradc and OiIcr Fcccivallcs

(1,1S4.S?)

(5,728.17i
Tradc Payallcs S,SSS.63 5,235.35
2,0S?.39 752.09
CDVK GHQHUDWHG IURP OSHUDWLRQV 12,129.S4 4,270.55

Dircci Tacs Paid (including Ta Dcducicd ai
Sourcci

(606.?3)

(149.12i
Payncnis undcr Voluniary Fciircncni ScIcnc

(42.00)

(47.93i
NHW CDVK IURP OSHUDWLQJ $FWLYLWLHV 11,4S1.11 4,073.50

B. CDVK FORZ IURP ,QYHVWLQJ $FWLYLWLHV

Payncnis for ficd asscis

(2,046.?1)

(497.50i
Salc procccds of ficd asscis SS.S2 28.90
PurcIasc of Invcsincni

(1,6S0.29)

(886.57i
Salc of Invcsincni 1,6S1.62 -
Dividcnd rcccivcd fron Invcsincnis 2.S? 0.11
Inicr Corporaic Dcposiis givcn

(1,000.00) -
Inicr Corporaic Dcposiis rcaliscd 1,00S.?S 600.00
Inicrcsi Fcccivcd OiIcrs 22.S9 3.72

Inicrcsi rcccivcd on Inicr Corporaic Dcposiis
cic. 6.?9 11.14


NHW CDVK XVHG LQ ,QYHVWLQJ $FWLYLWLHV

(1,94S.S6)

(740.20i

C. CDVK FORZ IURP FLQDQFLQJ $FWLYLWLHV
Alloincni noncy (including prcniuni rcccivcd S,39?.61 2.67
Procccds fron long icrn lorrowings 10,4S1.S0 359.45
Procccds fron sIori icrn lorrowings 21,060.90 25,107.40
Fcdcnpiion of Dclcniurcs

(1,000.00)

(500.00i
Fcpayncni of long icrn lorrowings

(2,9S3.S4)

(953.48i
Fcpayncni of sIori icrn lorrowings

(31,?SS.S3)

(25,274.38i

Incrcasc 1 (Dccrcasci in casI crcdii faciliiics,
icnporary ovcrdrafi cic. fron lanls

(6,32S.99) 1,770.97


Wcsi Dcngal Capiial Invcsincni Sulsidy
rcccivcd - 125.48
Dividcnds paid (including ia on dividcndi

(3.S0)

(303.27i
Inicrcsi paid (ncii

(3,26S.96)

(3,061.76i
NHW CDVK XVHG LQ FLQDQFLQJ $FWLYLWLHV

(S,430.S1)

(2,726.92i




M$N$GEMENT'S D,SCUSS,ON $ND $N$LYS,S OF F,N$NC,$L COND,T,ON $ND RESULTS OF OPER$T,ONS

Invcsiors sIould rcad iIc following discussion of our financial condiiion and rcsulis of opcraiions iogciIcr
wiiI our audiicd financial siaicncnis undcr Indian CAAP and iIc noics io iIosc siaicncnis includcd in
Placcncni Docuncni. TIc following discussion is lascd on our audiicd financial siaicncnis and on
infornaiion availallc fron oiIcr sourccs. Our fiscal ycar cnds on MarcI 31 of cacI ycar, so all rcfcrcnccs io
a pariicular fiscal ycar arc io iIc 12 noniI pcriod cndcd MarcI 31 of iIai ycar.

TIc following discussion and analysis coniains forward-looling siaicncnis iIai involvc risls and
unccriainiics. For addiiional infornaiion rcgarding sucI risls and unccriainiics, plcasc scc cIapicrs
Forward-Looling Siaicncnis" and Fisl Faciors" in iIis Placcncni Docuncni.

OYHUYLHZ

PIillips Carlon Dlacl Liniicd (PCDL" or our Conpany"i, pari of iIc FPC Croup of Conpanics, was onc of
iIc pionccrs of iIc carlon llacl indusiry in India.

Our Conpany, incorporaicd in 1960, siaricd produciion fron Dcccnlcr 1962 using iIc oil furnacc
iccInology, iIc nosi widcly acccpicd nanufaciuring proccss of carlon llacl paicnicd ly iis iIcn collaloraior
and world carlon llacl lcadcr, PIillips Pcirolcun Conpany, USA. TIc collaloraiion wiiI PIillips Pcirolcun
Conpany cndcd in 1978 and our Conpany Ias sincc nadc considcrallc progrcss ly viriuc of coniinucd
cfforis of iccInologisis, cnginccrs and susiaincd F&D aciiviiics.

In 1988 our Conpany cnicrcd inio a iccInical agrccncni wiiI Colunlian CIcnicals Conpany, USA, and
acquircd acccss io iIc nodcrn siaic-of-iIc-ari Carlon Dlacl iccInology. TIis Iclpcd our Conpany in gaining
flcililiiy, lciicr produci rangc, produciion capaciiy and cncrgy conscrvaiion. TIc iccInical agrccncni cndcd
in 1998.

Prcscnily our Conpany Ias insiallcd capaciiy of producing 3,60,000 Mciric Tonncs Pcr Annun (MTPAi of
Carlon Dlacl along wiiI grccn powcr capaciiy of 60.50 Mcga Waii (MWi.

Our Conpany Ias nanufaciuring faciliiics ai 4 locaiions i.c., Durgapur in Wcsi Dcngal, Palcj and Mundra in
Cujarai and KocIi in Kcrala and a wcll-organizcd disiriluiion nciworl covcring supplics io all iyrc
nanufaciuring uniis, iyrc rc-ircading uniis and oiIcr consuncrs all ovcr iIc couniry. Our Conpany is
cpanding carlon llacl capaciiy io ialc advaniagc of iIc growing dcnand and is sciiing up co-gcncraiion
powcr planis io dc-risl lusincss nodcl and lolsicr opcraiing nargins.

Our Conpany Iad ialcn advaniagc of iIc Elcciriciiy Aci iniroduccd in 2003 io sciup a 12 MW co-gcncraiion
powcr plani (CPPi ai iis Palcj plani during FY 2005 using iIc off gas cniiicd fron iis carlon llacl plani (OII
GDV"i.

Encouragcd ly iIc succcss of iIc Palcj CPP, our Conpany Ias sci up a 30 MW CPP ai iis Durgapur plani
wIicI conncnccd conncrcial opcraiions fron 1
si
April 2009. Our Conpany also Ias a 2.5 MW CPP ai iis
plani locaicd ai KocIi, Kcrala.

Our conpany Ias furiIcr conplcicd iis Crccnficld projcci locaicd in Mundra (Cujaraii, wiiI a carlon llacl
capaciiy of 90,000 MT wIicI Ias siaricd opcraiions fron 17
iI
Ociolcr 2009 and our Conpany Ias also pui
up a CPP of 16 MW in Mundra wIicI Ias conncnccd conncrcial opcraiion fron 24
iI
Dcccnlcr 2009.

To ncci iIc growing dcnand of carlon llacl, loiI in iIc doncsiic and inicrnaiional narlcis, our Conpany
Ias planncd io furiIcr cpand iis carlon llacl capaciiy ly 50,000 MT ai Mundra. As a rcsuli, our Conpany's
insiallcd capaciiy for Carlon Dlacl will rcacI io 4,10,000 MT.

Our Conpany Ias also planncd io sci up CPPs (using off gasi aggrcgaiing 16 MW i.c., 10 MW ai KocIi and 6
MW ai Mundra, and io dcconnission iIc cisiing 2.5 MW CPP ai KocIi, Kcrala. Aficr conplciion of iIcsc
cpansions, our Conpany's grccn powcr gcncraiion capaciiy will rcacI 74 MW.



WiiI iIc oljcci io carvc a nicIc in Ovcrscas Marlcis our Conpany Iad also cnicrcd inio a joini vcniurc
agrccncni wiiI iIrcc sulsidiary conpanics of VinacIcn on 9
iI
May 2008 for sciiing up a 1,15,000 MT
carlon llacl faciliiy and a 16MW powcr unii in pIascs in Vicinan in wIicI our Conpany sIall Iold 80%
sialc iIrougI a spccial purposc vcIiclc and iIc iIrcc sulsidiary conpanics of VinacIcn would picl up 20%
sialc.

OSSRUWXQLWLHV DQG TKUHDWV:

Our Conpany is on iIc looloui for opporiuniiics and iIrcais iIai cisi in iIc lusincss and is gcarcd up io
nalc iIc lcsi of iIc opporiuniiics wIilc facing iIc iIrcais.

OSSRUWXQLWLHV:

x TIc growiI in doncsiic cconony and pariicularly in auio sccior sIould iranslaic inio IigIcr dcnand for
carlon llacl for rcplaccncni 1 OEM iyrc dcnand.
x LauncI of snallcr cars is lilcly io gcncraic dcnand for iyrcs for OEM scgncni and India nay cncrgc as
auio sccior Iul for snallcr cars wIicI will Iavc favourallc inpaci on dcnand for carlon llacl.
x Our Conpany can convcri lcan gascs io gcncraic clcciriciiy and loosi profiialiliiy

TKUHDWV:

x Carlon llacl 1 iyrc inpori
x Ncw cnirani
x Inadcquaic infrasiruciurc ai poris, rcsuliing in dcicniion of vcsscls and IigIcr frcigIi cosis.
RLVkV DQG CRQFHUQ:
TIc raw naicrial for our Conpany (carlon llacl fccdsiocli is rcsidual oil fron ciraciion proccss of crudc
and Ias wiincsscd pricc volaiiliiy. TIc pricc of carlon llacl is gcncrally rcviscd cvcry quaricr. Drop in
dcnand for carlon llacl and incrcasc in inpori of carlon llacl Ias scrious inplicaiions for iIc aciiviiy lcvcl
and rcsulianily iIc availaliliiy of wasic gas is inpacicd.

Our Conpany is also cposcd io risls fron fluciuaiions of Indian Fupcc vis--vis oiIcr currcncics, inicrcsi
raic and rcgulaiions rclaiing io cnvironncni.

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Our Conpany Ias csiallisIcd adcquaic inicrnal conirol sysicns in all arcas of opcraiion ly uiilizing iIc
scrviccs of inicrnal and cicrnal audiiors fron iinc io iinc and also ly iis in Iousc cpcris and rcsourccs.
Morcovcr, our Conpany coniinuously upgradcs iIcsc sysicns in linc wiiI iIc lcsi availallc praciiccs. TIcsc
rcporis and variancc analysis arc rcgularly discusscd wiiI ncnlcrs of Managcncni Conniiicc and aciions
arc ialcn. Opcraiions Fcpori is iallcd ai cacI Doard Mcciing, aficr discussion ai iIc Audii Conniiicc
Mcciing. An indcpcndcni Audii Conniiicc of iIc Doard rcvicws iIc adcquacy of Inicrnal Conirol.

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Our Conpany progrcsscd furiIcr on various iniiiaiivcs io acIicvc grcaicr IcigIis in iIc ficld of Environncni,
HcaliI and Safciy (EHSi. Progrcssing iowards iIc dcsircd goal, our Conpany Ias lrougIi in frcsI policics for
grccncr surroundings.

Our Conpany Ias siricily adIcrcd io iIc Environncni, HcaliI and Safciy norns ai all iis nanufaciuring
locaiions, rcsuliing in rcduciion in ovcrall injury io iIc Environncni.

TIc conccricd cfforis io incorporaic cfficicni Corporaic Social Fcsponsililiiy coniinucd during FY10,
cnconpassing HcaliI cIccl up canps, Hcpaiiiis D & C scrccning icsi, Frcc Eyc CIccl-up Canps, Fural Arca
Dcvclopncni, Frcc disiriluiion of Mcdicincs ai Mcdical Canps, Aids Awarcncss Progrannc and suppori io a
fcw insiiiuiions involvcd in social scrvicc.



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Hunan Fcsourccs coniinuc io lc a focus arca for our Conpany. Scvcral iniiiaiivcs wcrc ialcn io faciliiaic iIc
pcrfornancc and dcvclopncnial rcquircncnis of all cnployccs. Our cfforis in cnIancing iIc cffcciivcncss of
iIc Dalanccd Dusincss Scorccard rcnaincd unalaicd

Our Conpany's nanpowcr rcquircncni for iIc ncw cpansion in Mundra and our cisiing nanufaciuring
uniis Iavc lccn carcfully planncd and lcncInarlcd wiiI iIc glolal organizaiions.

TIc indusirial rclaiions sccnario coniinucs io lc IcaliIy.

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TIc prinary raw naicrial involvcd in iIc produciion of Carlon Dlacl is carlon llacl fccdsiocl (CDFSi wIicI
is a rcsiduc dcrivcd during rcfining of Crudc Oil, iIc priccs of wIicI arc suljcci io doncsiic and inicrnaiional
supply and dcnand, inpori1cpori iariffs and duiics, doncsiic duiics and various oiIcr faciors lcyond our
Conpany's conirol. TIc cosi of CDFS accounicd for 95.81% of iIc ioial cosi of raw naicrial in iIc FY 2009
and 97.11% in iIc FY 2008.

In rcccni ycars iIcrc Iavc lccn significani fluciuaiions in iIc priccs of Crudc Oil. Our Conpany inicnds io
dcrisl iIc lusincss nodcl iIrougI salc of surplus powcr fron CPPs, scc cIapicr iiilcd "Our Dusincss" in iIis
Placcncni Docuncni.

FuriIcr, iIc narlcis and priccs for our Conpany's finisIcd producis nay lc influcnccd ly iIc aggrcgaic
dcnand for sucI producis (wIicI nay fluciuaic wiiI cIangcs in ccononic condiiions, iIc pricc and
availaliliiy of cquivalcni producis fron conpciiiors of our Conpany, anong oiIcr faciorsi.

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TIcrc is incrcasing conpciiiivc prcssurc in iIc indusiry in wIicI wc opcraic, wIicI nalcs our goals of
incrcasing narlci sIarcs and lroadcning our consuncr lasc a coniinuing cIallcngc. Incrcasing conpciiiivc
prcssurcs nay also inpaci our aliliiy io inprovc rcalizaiions fron our producis. Wc nccd io rcspond io
conpciiiivc lusincss siraicgics adopicd ly oiIcr playcrs and conscqucnily our cosis, including advcriising
and salcs pronoiion cpcnscs nay incrcasc.

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Our carlon llacl planis and co-gcncraiion powcr planis arc suljcci io ccniral and siaic cnvironncnial laws
and rcgulaiions, wIicI govcrn iIc discIargc, cnission, sioragc, Iandling and disposal of a variciy of
sulsianccs iIai nay lc uscd in or rcsuli fron our opcraiions. In casc of any cIangc in cnvironncnial or
polluiion laws and rcgulaiions, wc nay lc rcquircd io incur significani anounis on, anong oiIcr iIings,
cnvironncnial noniioring, and polluiion conirol cquipncni and cnissions nanagcncni. In addiiion, failurc
io conply wiiI cnvironncnial laws nay rcsuli in iIc asscssncni of pcnaliics and fincs againsi us ly
rcgulaiory auiIoriiics.

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Our Conpany Ias uiilizcd iIc wasic gas cniiicd wIilc producing carlon llacl, io gcncraic grccn powcr iIai
is uscd for capiivc consunpiion as wcll as for ncrcIani1lilaicral salc. TIis lrings addiiional rcvcnuc and
also incrcascs iIc opcraiing nargin, wIicI providcs susiainallc loiion-linc. Using iIc wasic gas io gcncraic
powcr Ias nadc our Conpany iIc firsi carlon llacl conpany io lc cligillc for carlon crcdiis. Our Conpany
rcccivcd Fs. 277.77 lalIs of Ccriificd Enission Fcduciion (CEFsi in FY08. TIis Iclps in incrcasing iIc
ovcrall EDIDTA nargins.



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NoiwiiIsianding iIc rcccni downiurn in iIc Indian auionoiivc sccior wIicI was a rcsuli of iIc glolal
ccononic crisis, our Conpany lclicvcs iIai iIc auionoiivc indusiry in India is poiscd for significani growiI
in iIc nci fcw ycars, spccifically in iIc snall car and iwo-wIcclcr scgncnis. Our Conpany lclicvcs iIai iIis
growiI will lc conncnsuraic wiiI iIc ovcrall cpccicd growiI in iIc Indian cconony. Ncarly all iIc najor
glolal auionolilc nanufaciurcrs Iavc csiallisIcd opcraiions in India and nany arc also considcring India
as an cpori dcsiinaiion for iIcir producis nanufaciurcd in oiIcr counirics. FuriIcr, as iIc Indian cconony
coniinucs io cpand, our Conpany cpccis iIc infrasiruciurc, connunicaiion and powcr scciors io grow,
iIcrcly incrcasing iIc dcnand for our Conpany's Powcr produciion. To iIc cicni iIc Indian auionoiivc
and1or indusirial sccior cpcricnccs pcriods of slowing or ncgaiivc growiI, our Conpany's rcsulis of
opcraiions could suffcr.

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TIc ccononic condiiion of India Ias a dircci inpaci on our inconc as nosi of our lusincsscs and opcraiions
arc locaicd in India and a sulsianiial najoriiy of our inconc is dcrivcd fron India. Wc lclicvc iIai iIc
succcss of our lusincss is dcpcndcni on iIc gcncral ccononic condiiions in India. CrowiI in iIc CDP and
pcr capiia inconc of Indians gcncrally rcsulis in incrcascd dcnand for auionolilc indusiry wIicI is dirccily
linlcd wiiI iIc incrcasc in inconc of our Conpany.

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x Connissioning of 30 MW CPP ai Durgapur during O1FY 2010.
x Connissioning of 90,000 MT carlon llacl plani and 16MW CPP during iIc O3FY 2010.
x Inposiiion of anii-dunping duiy on inpori of carlon llacl ly iIc govcrnncni of India.
x Pursuani io iIc approval of iIc sIarcIoldcrs for iIc Prcfcrcniial Issuc of convcriillc warranis ly way
of posial lalloi on 16.04.2010, iIc Conniiicc of Dircciors Ias considcrcd and approvcd iIc issuc of
12,50,000 warranis convcriillc inio cqual nunlcr cquiiy sIarcs ai a pricc of Fs. 1961- calculaicd in
accordancc wiiI CIapicr VII of iIc SEDI Fcgulaiions for an aggrcgaic sun of Fs. 2450 LalIs io iIc
consiiiucnis of our Pronoicr 1 Pronoicr Croup.


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Pariiculars
FY 2009 FY2008 FY 2007
Fs.
(in lalIsi
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ioial
inconc
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ioial
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,NCOME
Nci Salcs 116,327.85 97.79% 103,318.16 98.73% 99,861.81 100.19%
OiIcr Inconc 1,632.46 1.37% 612.22 0.59% 408.69 0.41%
Incrcasc1(dccrcasci
in Siocl 1,000.97 0.84% 715.79 0.68% (599.22i (0.60%i
TOT$L ,NCOME 118,961.28 100.00% 104,646.17 100.00% 99,671.28 100.00%

EXPEND,TURE
Faw Maicrials
Consuncd 93,999.47 79.02% 64,066.26 61.22% 67,262.00 67.48%
Epcnscs 23,870.51 20.07% 25,802.65 24.66% 22,657.89 22.73%
Dcprcciaiion 1,963.67 1.65% 2,013.59 1.92% 2,036.48 2.04%
Financc and OiIcr
Epcnscs 8,857.68 7.45% 1,485.23 1.42% 3,260.27 3.27%
TOT$L
EXPEND,TURE 128,691.33 108.18% 93,367.73 89.22% 95,216.64 95.53%

PURILW/(LRVV)
BHIRUH TDxDWLRQ (9,730.05i (8.18%i 11,278.44 10.78% 4,454.64 4.47%
Provision for
Taaiion 3,245.91 2.73% 2,347.59 2.24% 2,101.44 2.11%
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TDxDWLRQ (6484.14i (5.45%i 8,930.85 8.53% 2,353.20 2.36%




COMP$R,SON OF F,SC$L YE$R 2009 V,S -$-V,S W,TH F,SC$L YE$R 200S
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TIc inconc for iIc ycar cndcd 31.03.2009 siood ai Fs. 118,961.28 lalIs in conparison io Fs. 104,646.17
lalIs for iIc prcvious ycar cndcd 31.03.2008 dcpiciing a growiI of 13.68%. TIc nci salcs incrcascd fron
Fs. 103,318.16 lalIs io Fs. 116,327.85 lalIs, an incrcasc of 12.59%. OiIcr inconc incrcascd fron Fs.
612.22 lalIs io Fs. 1,632.46 lalIs, incrcasc of 166.65% nainly duc io Profii on salc of Invcsincni of Fs.
1,113.31 lalIs for iIc ycar cndcd 31.03.2009 as conparcd io Fs. 5.94 lalIs for iIc ycar cndcd 31.03.2008.

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TIc cosi of Maicrial Consuncd was ai 61.22% in iIc FY 2008 vis--vis 79.02% in iIc FY 2009, an incrcasc
of 17.8%. In alsoluic icrns iIc cosi incrcascd ly 46.72% as conparcd io incrcasc in salcs of 12.59%.

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Epcnscs wcrc ai 24.66% in iIc FY 2008 vis--vis 20.07% in iIc FY 2009, a dcclinc of 4.15%. In alsoluic
icrns also iIc cosi dcclincd ly 5.81%.

Epcnscs undcr iIc Icad Salarics Wagcs and Donus incrcascd ly 9.55% io Fs. 2,753.32 lalIs in
conparison io Fs. 2,513.38 lalIs. TIis incrcasc was principally duc io (ii an incrcasc in wagcs of


nanagcncni siaff in linc wiiI indusiry siandards and (iii addiiional nanpowcr cosis incurrcd associaicd
wiiI iIc connissioning of iIc ncw capaciiics. Epcnscs for Consunpiion of Siorcs, Sparcs and Pacling
Maicrials' dccrcascd ly 6.33% io Fs. 3,107.47 lalIs in F.Y. 2009 fron Fs. 3,317.56 lalIs in F.Y. 2008.
Powcr and fucl cpcnscs dccrcascd ly 20.22% io Fs. 521.48 lalIs in F.Y. 2009 fron Fs. 653.68 lalIs in
F.Y. 2008. Connission and Discouni also dccrcascd ly 18.41% io Fs. 9,474.18 lalIs in F.Y. 2009 fron Fs.
11,612.53 lalIs in F.Y. 2008. Our Conpany incurrcd a Loss on Disposal of Ficd Asscis of Fs. 379.68 lalIs
in F.Y. 2009 as conparcd io Fs. 39.63 lalIs in F.Y. 2008 wIicI also rcsulicd in iIc dccrcasc of profii of our
Conpany.

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Financc and OiIcr Epcnscs incrcascd 496.38% io Fs. 8,857.68 lalIs in FY 2009 fron Fs. 1,485.23 lalIs
in FY 2008. TIc incrcasc in inicrcsi was prinarily duc io IigIcr worling capiial rcquircncni during FY 09.
EcIangc fluciuaiions was duc io dcprcciaiion of Fupcc againsi US dollar and Icdging cosi.

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Dcprcciaiion for iIc FY 2009 is 1.65% of our ioial inconc as conparcd io 1.92% in iIc FY 2008. Ii dcclincd
ly 2.48% in alsoluic icrns as conparcd io iIc prcvious ycar. TIc gross ficd asscis siood ai Fs. 44,048.56
lalIs, a dcclinc of 1017.12 lalIs sincc iIc prcvious ycar.

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Our Conpany Iad incurrcd a Loss lcforc ia of Fs. 9730.05 lalIs for FY 2009 as conparcd io profii lcforc
ia of Fs.11,278.44 lalIs for iIc FY 2008. Our Conpany also posicd a Loss aficr Ta of Fs. 6,484.14 lalIs
as conparcd io a Profii aficr Ta of Fs. 8,930.85 lalIs for iIc FY 2008.

FY09 was prolally iIc nosi cIallcnging ycar in iIc Iisiory of our Conpany and was wiincss io onc of iIc
nosi scvcrc rcccssions pariicularly in USA, Europc and Japan. Alnosi all conpanics in iIc auio sccior in
iIc aforcsaid narlcis wcrc opcraiing ai 60 75% of capaciiy pariicularly during sccond Ialf of FY09.
Collapsc of onc of iIc largcsi invcsincni lanl in iIc US iriggcrcd widc sprcad risl avcrsion and crcdii flow
canc io a grinding Iali rcsuliing inio largc scalc produciion cuis, lay-offs and drop in dcnand for vcIiclcs,
iyrcs and carlon llacl. Unlilc India, iIc aforcsaid narlcis Iavc significani dcpcndcncc on dcnand fron
Original Equipncni Manufaciurcr (OEMi scgncni wIicI is circncly scnsiiivc io inicrcsi raics1crcdii flows.
Carlon Dlacl conpanics wcrc scvcrcly Iii ly canccllaiion of cisiing and fuiurc ordcrs pariicularly during
Ociolcr io Dcccnlcr 2008 wIicI crcaicd a panic siiuaiion and ovcrscas carlon llacl nanufaciurcrs siaricd
dunping carlon llacl in India wIicI was wiincssing rclaiivcly IigIcr growiI in CDP1cconony. TIus ripplc
cffcci of glolal financial nclidown siaricd inpaciing doncsiic carlon llacl priccs and dcnand.

In India, carlon llacl dcnand droppcd ly 25% during sccond Ialf of FY09 ovcr corrcsponding pcriod lasi
ycar. TIc siiuaiion was furiIcr aggravaicd ly largc scalc inporis of carlon llacl in India.

Our Conpany Iad io ialc produciion cui pariicularly during sccond Ialf of FY09 as a conscqucncc of
produciion cuis ialcn ly iyrc conpanics, widc sprcad icndcncy io dc-siocl duc io liquidiiy cruncI during
O3FY09 and largc scalc inporis. Our Conpany could acIicvc narlci sIarc of 38% during FY09 iIougI iIc
sizc of iIc pic rcduccd significanily duc io inporis and produciion cuis.

Drop in carlon llacl produciion Iad scvcrc inpaci on availaliliiy of Off gas for gcncraiion of powcr as wcll.
Howcvcr wiiI judicious allocaiion of produciion anongsi iIc iIrcc Planis, our Conpany Ias lccn allc io
narginally inprovc upon rcvcnuc fron salc of powcr during FY09 io Fs. 1551 lalIs fron Fs. 1494 lalIs in
FY08.

SIarp dcprcciaiion of Fupcc againsi US dollar also Iad scvcrc inpaci on iIc ccIangc fluciuaiion and iIc
Conpany Iad io incur sulsianiial Icdging cosi during FY 09 vis--vis FY 08.






COMP$R,SON OF F,SC$L YE$R 200S V,S -$-V,S W,TH F,SC$L YE$R 200?
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TIc inconc for iIc ycar cndcd 31.03.2008 siood ai Fs. 104,646.17 lalIs in conparison io Fs. 99,671.28
lalIs for iIc prcvious ycar cndcd 31.03.2007 dcpiciing a growiI of 4.99%. TIc nci salcs incrcascd fron Fs.
99,861.81 lalIs io Fs. 103,318.16 lalIs, an incrcasc of 3.46%. OiIcr inconc incrcascd fron Fs. 408.69
lalIs io Fs. 612.22 lalIs, incrcasc of 49.80% nainly duc io Incrcasc in dividcnd inconc of Fs. 155.11 lalIs
for iIc ycar cndcd 31.03.2008 as conparcd io Fs. 2.87 lalIs for iIc ycar cndcd 31.03.2007.

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TIc cosi of Maicrial Consuncd was ai 61.22% in iIc FY 2008 vis--vis 67.48% in iIc FY 2007, a dcclinc of
6.26%. In alsoluic icrns iIc cosi dcclincd ly 4.75% as conparcd io incrcasc in salcs of 3.46%. TIis was
duc io cffcciivc cosi nanagcncni siraicgics and inprovcd uiilizaiion of raw naicrials.

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Epcnscs was ai 24.22% in iIc FY 2008 vis--vis 22.73% in iIc FY 2008, a dcclinc of 1.49%. In alsoluic
icrns iIc cpcnscs incrcascd ly 11.85% duc io incrcasc in opcraiions.

Epcnscs undcr iIc Icad Salarics Wagcs and Donus incrcascd ly 25.92% io Fs. 2,513.38 lalIs in iIc F.Y.
2008 as conparcd io Fs. 1,996.06 lalIs in iIc F.Y. 2007. TIis incrcasc was principally duc io an incrcasc in
wagcs of nanagcncni siaff in linc wiiI indusiry siandards. Consunpiion of Siorcs, Sparcs and Pacling
Maicrials incrcascd ly 4.18% io Fs. 3,317.56 lalIs in F.Y. 2008 fron Fs. 3,184.43 lalIs in F.Y. 2007. Powcr
and fucl cpcnscs incrcascd ly 19.66% io Fs. 653.68 lalIs in F.Y. 2008 fron Fs. 546.26 lalIs in F.Y. 2007.
Connission and Discouni also incrcascd ly 47.73% io Fs. 11,612.53 lalIs in F.Y. 2008 fron Fs. 7,860.20
lalIs in F.Y. 2007.

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Dcprcciaiion for iIc FY 2008 is 1.92% of our ioial inconc as conparcd io 2.042% in iIc FY 2007. Ii dcclincd
ly 1.12% in alsoluic icrns as conparcd io iIc prcvious ycar. TIc gross ficd asscis siood ai Fs. 45,065.68
lalIs, an incrcasc of 348.65 lalIs sincc iIc prcvious ycar.

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Profii lcforc iaaiion incrcascd io Fs.11,278.44 lalIs in iIc FY 2008 wiiI an incrcasc in PDT ly 153.18% as
conparcd io Fs.4,454.64 lalIs in iIc FY 2007. Our Conpany posicd a Profii aficr Ta of Fs. 8,930.85 lalIs
wiiI an incrcasc in profii ly 279.51% as conparcd io a Profii aficr Ta of Fs. 2,353.20 lalIs for iIc FY
2007.




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PDUWLFXODUV 2009 200S 200?
Nci CasI Flow Fron Opcraiing
Aciiviiics
11,356.96 6,531.09 11,481.11
Nci CasI Uscd In Invcsiing
Aciiviiics
(23,774.98i (10,345.41i (1,763.97i
Nci CasI Uscd In Financing
Aciiviiics
11,625.40 1,104.00 (8,615.10i
Nci CIangcs In CasI & CasI
Equivalcnis
(792.62i (2,710.32i 1,102.04
CasI & CasI Equivalcnis-
opcning Dalancc
1,506.09 4,216.41 3,114.37
CasI & CasI Equivalcnis-
closing Dalancc
713.47 1,506.09 4,216.41


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Nci casI gcncraicd fron opcraiing aciiviiics was Fs 11,356.96 lalIs in iIc ycar cndcd MarcI 31, 2009 and
consisicd of nci profii lcforc ia of Fs. (9730.05i lalIs, as adjusicd for, anong oiIcr iIings, dcprcciaiion and
anoriizaiion of Fs. 1963.67 lalIs, loss on salc of ficd asscis of 379.68 lalIs, unrcalizcd (gaini1 loss on
forcign ccIangc fluciuaiion of 201.09 lalIs, inicrcsi & oiIcr financc cIargcs of Fs. 2936.13 lalIs, wIicI
was pariially offsci ly iIc profii on salc of invcsincni of Fs. 1113.31 lalIs. TIc casI flow was furiIcr
adjusicd for dividcnd inconc of Fs. 177 lalIs and inicrcsi rcccivcd1 rcccivallc on Inicr Corporaic dcposiis of
Fs. 188.29 lalIs rcsuliing in an opcraiing profii lcforc worling capiial cIangcs of Fs. (5590.19i lalIs. Our
opcraiing profii lcforc worling capiial cIangcs of Fs. (5590.19i lalIs wcrc furiIcr adjusicd duc io an
incrcasc in iradc and oiIcr rcccivallcs of Fs. 2594.75 lalIs, incrcasc in invcniorics of Fs. 3431.50 lalIs,
incrcasc in iradc payallcs of Fs. 11905.92 lalIs, dircci iacs paid of Fs. 947.82 lalIs & payncni undcr VFS
of Fs. 37.20 lalIs.

Nci casI gcncraicd fron opcraiing aciiviiics was Fs 6531.09 lalIs in iIc ycar cndcd MarcI 31, 2008 and
consisicd of nci profii lcforc ia of Fs. 11278.44 lalIs, as adjusicd for, anong oiIcr iIings, dcprcciaiion and
anoriizaiion of Fs. 2013.59 lalIs, loss on salc of ficd asscis of 39.63 lalIs, unrcalizcd (gaini1 loss on
forcign ccIangc fluciuaiion of 443.76 lalIs, inicrcsi & oiIcr financc cIargcs of Fs. 1944.70 lalIs, wIicI
was pariially offsci ly iIc profii on salc of invcsincni of Fs. 5.94 lalIs. TIc casI flow was furiIcr adjusicd
for dividcnd inconc of Fs. 155.11 lalIs & inicrcsi rcccivcd1 rcccivallc on Inicr Corporaic dcposiis of Fs.
78.45 lalIs rcsuliing in an opcraiing profii lcforc worling capiial cIangcs of Fs. 16003.37 lalIs. Our
opcraiing profii lcforc worling capiial cIangcs of Fs. 16003.37 lalIs wcrc furiIcr adjusicd duc io dccrcasc


in iradc and oiIcr rcccivallcs of Fs. 1059.09 lalIs, dccrcasc in invcniorics of Fs. 4042.64 lalIs, dccrcasc in
iradc payallcs of Fs. 992.29 lalIs, dircci iacs paid of Fs. 3326.46 lalIs and payncni undcr VFS of Fs.
51.80 lalIs.

Nci casI gcncraicd fron opcraiing aciiviiics was Fs 11481.11 lalIs in iIc ycar cndcd MarcI 31, 2007 and
consisicd of nci profii lcforc ia of Fs. 4454.64 lalIs, as adjusicd for, anong oiIcr iIings, dcprcciaiion and
anoriizaiion of Fs. 2036.48 lalIs, loss on salc of ficd asscis of 47.10 lalIs, inicrcsi & oiIcr financc
cIargcs of Fs. 3260.27 lalIs, wIicI was pariially offsci ly iIc profii on salc of invcsincni of Fs. 1.33 lalIs &
unrcalizcd (gaini1 loss on forcign ccIangc fluciuaiion of 453.68 lalIs. TIc casI flow was furiIcr adjusicd
for dividcnd inconc of Fs. 2.87 lalIs & inicrcsi rcccivcd1 rcccivallc on Inicr Corporaic dcposiis of Fs. 62.01
lalIs rcsuliing in an opcraiing profii lcforc worling capiial cIangcs of Fs. 10072.45 lalIs. Our opcraiing
profii lcforc worling capiial cIangcs of Fs. 10072.45 lalIs wcrc furiIcr adjusicd duc io dccrcasc in iradc
and oiIcr rcccivallcs of Fs. 1154.57 lalIs, dccrcasc in invcniorics of Fs. 2376.67 lalIs & incrcasc in iradc
payallcs of Fs. 5588.63 lalIs.

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Nci casI uscd in invcsiing aciiviiics was Fs. 23774.98 lalIs for iIc ycar cndcd MarcI 31, 2009 and consisicd
of purcIasc of ficd asscis of Fs. 24345.38 lalIs, purcIasc of invcsincni of Fs. 54939.83 lalIs wIicI was
pariially offsci ly procccds fron salc of ficd asscis of Fs. 107.59 lalIs & salc procccds of Fs 55104.98 lalIs
fron salc of invcsincni , inicrcsi rcccivcd oiIcrs Fs. 5.35 lalIs, inicrcsi rcccivcd on Inicr Corporaic Dcposii
Fs. 141.49 lalIs & dividcnd inconc of Fs. 177 lalIs.

Nci casI uscd in invcsiing aciiviiics was Fs. 10345.41 lalIs for iIc ycar cndcd MarcI 31, 2008 and consisicd
of purcIasc of ficd asscis of Fs. 10920.21 lalIs , purcIasc of invcsincni of Fs. 38775.68 lalIs wIicI was
pariially offsci ly procccds fron salc of ficd asscis of Fs. 18.93 lalIs & salc procccds of Fs 38781.62 lalIs
fron salc of invcsincni , inicrcsi rcccivcd oiIcrs Fs. 139.36 lalIs, inicrcsi rcccivcd on Inicr Corporaic
Dcposii Fs. 122.71 lalIs & dividcnd inconc of Fs. 155.11 lalIs.

Nci casI uscd in invcsiing aciiviiics was Fs. 1763.97 lalIs for iIc ycar cndcd MarcI 31, 2007 and consisicd
of purcIasc of ficd asscis of Fs. 2046.71 lalIs , purcIasc of invcsincni of Fs. 1650.29 lalIs wIicI was
pariially offsci ly procccds fron salc of ficd asscis of Fs. 58.52 lalIs & salc procccds of Fs 1651.62 lalIs
fron salc of invcsincni , inicrcsi rcccivcd oiIcrs Fs. 207.48 lalIs, inicrcsi rcccivcd on Inicr Corporaic
Dcposii Fs. 6.79 lalIs & dividcnd inconc of Fs. 2.87 lalIs.

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Nci casI gcncraicd fron financing aciiviiics for iIc ycar cndcd MarcI 31, 2009 was Fs.11625.40 lalIs and
consisicd of long icrn & sIori icrn lorrowing of Fs. 34641.92 lalIs, rcpayncni of long icrn & sIori icrn
lorrowings of Fs. 14026.93 lalIs , dccrcasc in casI crcdii linii of Fs. 7343.93 lalIs, dividcnd payncni of
Fs. 1172.45 lalIs & inicrcsi payncni of Fs. 4496.25 lalIs.

Nci casI gcncraicd fron financing aciiviiics for iIc ycar cndcd MarcI 31, 2008 was Fs.1104.00 lalIs and
consisicd of long icrn & sIori icrn lorrowing of Fs. 8218.80 lalIs, rcpayncni of long icrn & sIori icrn
lorrowings of Fs. 4543.13 lalIs , incrcasc in casI crcdii linii of Fs. 1332.34 lalIs, rcdcnpiion of
dclcniurcs Fs. 1000 lalIs, dividcnd payncni of Fs. 586.73 lalIs & inicrcsi payncni of Fs. 2317.46 lalIs.

Nci casI uscd in financing aciiviiics for iIc ycar cndcd MarcI 31, 2007 was Fs.8615.10 lalIs and consisicd
of long icrn & sIori icrn lorrowing of Fs. 31512.70 lalIs, rcpayncni of long icrn & sIori icrn lorrowings
of Fs. 34739.07 lalIs , dccrcasc in casI crcdii linii of Fs. 6328.99 lalIs, rcdcnpiion of dclcniurcs Fs. 1000
lalIs, dividcnd payncni of Fs. 3.80 lalIs & inicrcsi payncni of Fs. 3453.55 lalIs.





,NDUSTRY OVERV,EW

TIc n{o)muton n tIs sccton Ius Iccn cxt)uctcd {)om uu)ous gouc)nmcnt puIcutons und ndust)u sou)ccs.
HctIc) uc no) unu otIc) pc)son conncctcd utI tIc Issuc Iuuc uc){cd tIs n{o)muton. Indust)u sou)ccs und
puIcutons gcnc)uu stutc tIut tIc n{o)muton contuncd tIc)cn Ius Iccn oItuncd {)om sou)ccs gcnc)uu
Iccucd to Ic )cuIc, Iut tIut tIc) uccu)ucu, compctcncss und undc)ung ussumptons u)c not guu)untccd
und tIc) )cuItu cunnot Ic ussu)cd und, ucco)dngu, nucstmcnt dccsons sIoud not Ic Iuscd on sucI
n{o)muton. TIc n{o)muton {)om tIc cxtc)nu sou)ccs muu Iuuc Iccn )c-cuss{cd Iu us {o) tIc pu)posc o{
p)cscntuton.

OYHUYLHZ RI WKH ,QGLDQ EFRQRP\
India is iIc world's largcsi dcnocracy ly iIc populaiion sizc, and onc of iIc fasicsi growing ccononics in iIc
world. Ii Ias grown ai an avcragc raic of 7.5% pcr annun during iIc lasi iIrcc ycars. According io CIA World
Facilool, India's csiinaicd populaiion was 1.16 lillion pcoplc in July 2009. India Iad an csiinaicd CDP of
approinaicly US$ 3,548.0 lillion in 2009, wIicI nalcs ii iIc fouriI largcsi cconony in iIc world aficr iIc
Uniicd Siaics of Ancrica, CIina and Japan, in purcIasing powcr pariiy icrns. TIc following iallc prcscnis a
conparison of India's rcal CDP growiI raic wiiI iIc rcal CDP growiI raic of ccriain oiIcr counirics.






TIc Covcrnncni of India's ElcvcniI Fivc Ycar Plan, wIicI covcrs iIc pcriod fron 2007 io 2012, ains io
acIicvc a susiainallc growiI raic of 9.0% wiiI cnpIasis on a lroad-lascd and inclusivc approacI iIai would
inprovc iIc qualiiy of lifc and rcducc dispariiics across rcgions and connuniiics. (Sourcc. Covcrnncni of
India, ElcvcniI Fivc Ycar Plan 20072012, Volunc Ii




OYHUYLHZ RI WKH CDUbRQ BODFk ,QGXVWU\ :

Carlon llacl is a forn of anorpIous carlon iIai Ias an circncly IigI surfacc arca io volunc raiio and ii is
onc of iIc firsi nano-naicrials io find connon usc. Carlon llacl is a naicrial, usually produccd ly iIc
inconplcic conlusiion of pcirolcun producis.

TIc carlon llacl indusiry cIain includcs. coal, pcirolcun, colc, iar, napIiIa, aniIraccnc, napIiIalcnc and
oiIcr condcnscd-nuclci aronaiics, Carlon llacl, iyrc (iIc rullcr indusiryi, auionolilc. Carlon llacl Ias
iIc sircngiIcning aciion on rullcrs and iIcy arc connonly uscd for inproving iIc pcrfornanccs of rullcrs.
Currcnily, carlon llacl Ias lcconc iIc rullcr conpounding ingrcdicni wiiI iIc largcsi consunpiion in iIc
world. TIc carlon llacl consunpiion usually accounis for 40% - 50% of iIc rullcr consunpiion. In iIc
rullcr conpounding, iIc proporiion lciwccn iIc rullcr and carlon llacl is usually 2.1.

,QGXVWU\ SQDSVKRW

Carlon llacl is csscniially an oil ly-produci uscd io sircngiIcn rullcr. Ii is nadc ly sIooiing a Ioi nisi of
oil pariiclcs inio a flanc, a vcry cpcnsivc proccss iIai Ias liniicd iIc nunlcr of conpciiiors in iIc indusiry.
Carlon llacl is a gcncral nanc for a variciy of iradc nanc producis sucI as acciylcnc llacl, aiiriicd llacl,
cIanncl llacl, flanc llacl, furnacc llacl, lanp llacl, and iIcrnal llacl. Carlon llacl produciion rcquircs
largc anounis of Icai. In addiiion io iis nain usc in iyrcs, iIc powdcry rcinforcing agcni is uscd io nalc inls
and oiIcr cvcryday producis.

As carly as 1864, carlon llacl was uscd as a priniing inl and ii is siill cnploycd in iIis sccior in iIc laic
1990s. TIc nosi rcvoluiionary applicaiion was dcvclopcd for iIc rullcr indusiry, wIicI discovcrcd iIai
carlon llacl nadc iyrcs iougIcr. In 1920, iIc rullcr indusiry consuncd only 40 pcrccni of iIc carlon llacl
produccd. Today, iIc rullcr indusiry is iIc largcsi narlci for carlon llacl. TIc najor dcnand for carlon
llacl is fron iIc iyrc and rullcr indusiry. Any cIangcs in iIc auionolilc sccior will Iavc a dircci inpaci on
iIc doncsiic and inicrnaiional carlon llacl indusiry.

,QGXVWU\ LHDGHUV

TIc iop iIrcc conpanics - Caloi Corporaiion, Dcgussa and Colunlian CIcnicals, currcnily conirol 50% of
iIc glolal carlon llacl narlci. TIc Indian narlci is doninaicd ly iIc iop iIrcc playcrs in iIc indusiry -
PIillips Carlon Dlacl, Hi TccI (Adiiya Dirla Nuvoi and Caloi India (a sulsidiary of Caloi Corporaiioni.

PRVLWLYH RXWORRk IRU FDUbRQ BODFk ,QGXVWU\ :

TIc world carlon llacl indusiry dcnand is doninaicd ly a snall group of Clolal Tyrc Conpanics. 75% io
80% of carlon llacl dcnand is dirccily rclaicd io noior vcIiclcs. TIc iyrc narlci is dividcd approinaicly
inio 27.73 lciwccn iIc OEM and Fcplaccncni narlci and is cpccicd io grow. Clolally, onc Ias wiincsscd a
sIifi in iIc iyrc produciion capaciiy away fron IigIcr cosi rcgion (USA, EUi io cncrging narlcis lilc CIina,
India and SouiI Ancrica. TIis in iurn Ias rcsulicd in a sIifi of carlon llacl produciion capaciiy io iIcsc
rcgions. WIilc iIc Clolal Carlon Dlacl salcs Ias lccn growing ai a CACF of 4.4% and is valucd ai Fs. 270
ln, iIc Indian Carlon Dlacl Ias lccn growing ai a CACF of 8% and is valucd ai Fs. 20 ln. A SWOT Analysis
of iIc Indian Carlon Dlacl Indusiry Ias lccn providcd lclow.





Uses o] Corbon B1ooK
TIc nosi connon usc i.c., 64% of carlon llacl is as a pigncni and rcinforcing forcc in auionolilc iyrcs.
Carlon llacl Iclps in conduciing Icai away fron iIc ircad and lcli arca of iIc iyrc, rcducing iIcrnal
danagc and incrcasing a iyrc's lifc. Carlon llacl pariiclcs arc also cnploycd in sonc radar alsorlcni
naicrials and in prinicr ioncr. A nornal car iyrc coniains aloui 3.63 lg of Carlon Dlacl.
Tyre, 64.00
Printing Ink, PVC
Master Batches,
3.00
Rubber Hose
Conveyor belting,
Auto
Components etc.,
33.00

3e As1o/Poo1]1o reg1on o] 1e uor1d ooooun1s ]or neor1g 4.SD m1111on 1ons ou1 o]JD.JD m1111on 1ons
o] g1obo1 oopoo11g o] oorbon b1ooK. 11 1s o1so 1e ]os1es1 grou1ng reg1on u11 epeo1ed grou1 o]
4.SS% uersus 1e g1obo1 demond grou1 o] S.JS% dur1ng ne1 4 geors. 1nd1o, u11 o oopoo11g o]
D.S9 m1111on 1ons 1s 1e Srd 1orges1 produoer 1n As1o, o]1er C1no ond dopon.



Presen1 Corbon B1ooK emond & Copoo11g

Million tons
2007 (Carbon Black) 2010 CAGR 2015
Demand Capacity Demand Demand
Asia PaciIic 4.20 4.50 5.20 4.35 6.80
North America 1.90 2.20 2.00 1.00 2.10
Western Europe 1.80 1.60 2.00 2.10 2.20
Eastern Europe 0.55 0.90 0.67 3.00 0.85
South America 0.52 0.60 0.60 2.80 0.70
AIrica & M.East 0.25 0.30 0.30 3.90 0.37
Overall 9.22 10.1 10.77 3.15 13.02

MLJUDWLRQ RI W\UH FDSDFLWLHV IURP KLJKHU FRVW UHJLRQ (US$, EU) WR HPHUJLQJ PDUkHWV
FUHLJKW CRVW LV D VLJQLILFDQW FRPSRQHQW : S% - 10% RI CB SULFH
omes11o demond o] oorbon b1ooK 1n 1nd1o greu bg ?.S% dur1ng 1e 1os1 ]eu geors. TIc doncsiic
indusiry is glolally conpciiiivc, as nosi of iIc capaciiy is nodcrn and produci qualiiy naicIcs
inicrnaiional siandards. TIc capaciiy uiilizaiion lcing ovcr 90%, doncsiic playcrs including PCDL Iavc
cnlarlcd upon capaciiy cpansion io ncci iIc growing dcnand in doncsiic as wcll as cpori narlci.

PRZHU SHFWRU
,QGLDQ PRZHU SHFWRU

emond Supp1g Soenor1o
TIc powcr indusiry in India Ias Iisiorically lccn cIaracicrizcd ly cncrgy sIoriagcs wIicI Iavc lccn
incrcasing ovcr iIc ycars. TIc following grapI prcscnis iIc gap lciwccn rcquircncni and supply of clcciriciiy
in India fron fiscal ycar 2001- 02 (April 1, 2001 MarcI 31, 2002i io fiscal ycar 2006-07 (April 1, 2006
MarcI 31, 2007i.


Sou)cc. CEA, Pouc) Sccnu)o ut u Cuncc, OctoIc) 2UU?



TIc gap lciwccn dcnand and supply Ias lccn incrcasing, lcading io incrcascd powcr sIoriagcs. TIc
following iallc IigIligIis iIc pcal dcficii ovcr iIc ycars.

CDSWLYH PRZHU GHQHUDWLRQ LQ ,QGLD
AnoiIcr scgncni of powcr in India is iIc capiivc powcr scgncni. Capiivc powcr rcfcrs io powcr gcncraiion
fron a projcci sci up for indusirial consunpiion. According io CEA Fcpori, July 2007, capiivc powcr capaciiy,
ai 14,636 MW, accounicd for 10.8% of ioial insiallcd capaciiy in India. TIc dcpcndcncc on capiivc powcr Ias
lccn incrcasing, duc io iIc coniinuing sIoriagc of powcr and India's ccononic growiI. TIc Elcciriciiy Aci
2003 providcd addiiional inccniivcs io capiivc powcr gcncraiion conpanics io grow ly ccnpiing iIcn fron
liccnsing rcquircncnis. TIis Ias rcsulicd in an incrcasc in capiivc powcr capaciiy. Fclialiliiy of powcr supply
and lciicr ccononics arc oiIcr faciors driving indusirics io dcvclop capiivc gcncraiion planis.

Siaic Ccncos. Siaic Ccncraiion Conpanics
CPSUs. Ccniral Pullic Sccior Uniis
IPPs. Indcpcndcni Powcr Produccrs
STUs. Siaic Transnission Unii
Discons. Disiriluiion Conpanics
PCCIL. Powcr Crid Corporaiion of India Liniicd



3ronsm1ss1on ond 1s1r1bu11on
In India, iIc iransnission and disiriluiion sysicn is a iIrcc-iicr siruciurc conprising rcgional grids, siaic
grids and disiriluiion nciworls. Mosi inicrsiaic iransnission linls arc owncd and opcraicd ly iIc PCCIL
iIougI sonc arc joinily owncd ly iIc SEDs. In addiiion, PCCIL owns and opcraics nany inicr-rcgional
iransnission lincs (wIicI arc a pari of iIc naiional gridi io faciliiaic iransfcr of powcr fron a rcgion of
surplus io onc wiiI dcficii. Siaic grids and disiriluiion nciworls arc prinarily owncd and opcraicd ly iIc
rcspcciivc SEDs or siaic govcrnncnis (iIrougI siaic clcciriciiy dcparincnisi. Dccausc pcal dcnand docs noi
occur sinuliancously in all siaics, siiuaiions nay arisc in wIicI iIcrc is surplus of powcr in onc siaic wIilc
anoiIcr siaic faccs a dcficii. TIc rcgional grids faciliiaic iransfcrs of powcr fron a powcr surplus siaic io a
powcr dcficii siaic. TIc grids also faciliiaic iIc opiinal scIcduling of nainicnancc ouiagcs and lciicr co-
ordinaiion lciwccn iIc powcr planis. TIc rcgional grids arc io lc gradually inicgraicd io forn a naiional grid,
wIcrcly surplus powcr fron a rcgion could lc iransfcrrcd io a rcgion facing powcr dcficiis, iIcrcly
faciliiaiinga norc opiinal uiilisaiion of iIc naiional gcncraiing capaciiy.

In addiiion, iIc Elcciriciiy Aci 2003 providcs for opcn acccss, wIcrcly any gcncraior Ias non-discrininaiory
acccss io iransnission lincs or disiriluiion sysicns, and pcrniis iIc crcaiion of alicrnaiivc or parallcl
disiriluiion nciworls. Privaic sccior invcsincnis Iavc lccn allowcd in iIc iransnission sccior and forcign
dircci invcsincni in iIis sccior is lcing cncouragcd ly iIc Covcrnncni.

Pouer 3rod1ng
TIc Elcciriciiy Aci 2003 rccognizcd powcr irading as a disiinci aciiviiy fron gcncraiion, iransnission and
disiriluiion. Powcr irading involvcs iIc ccIangc of powcr fron supplicrs wiiI surpluscs io supplicrs wiiI
dcficiis.
Scasonal divcrsiiy in gcncraiion and dcnand, as wcll as iIc conccniraiion of powcr gcncraiion faciliiics in iIc
fucl-ricI casicrn rcgion of India Ias crcaicd anplc opporiuniiics for iIc irading of powcr. Fcccni rcgulaiory
dcvclopncnis includc iIc announccncni of rulcs and provisions for opcn acccss and liccnsing rclaicd io
inicrsiaic irading in clcciriciiy. Undcr iIc rulcs noiificd, iIc rcgulaiory inicniion is iIc pronoiion of
conpciiiion. Scvcral cniiiics Iavc siaricd irading opcraiions or Iavc applicd for irading liccnscs.

TDULIIV
Tariffs for IPPs arc govcrncd ly agrccncnis lciwccn powcr gcncraiion conpanics and proccssors lnown as
PPAs. Tariffs for siaic sccior gcncraiors arc rcgulaicd ly iIc SEFCs. TIc Elcciriciiy Aci 2003 cnpowcrs iIc
Ccniral Elcciriciiy Fcgulaiory Connission (CEFC"i io sci iIc iariff of gcncraiing conpanics owncd or
conirollcd ly iIc Covcrnncni and oiIcr cniiiics wiiI inicrsiaic gcncraiion or iransnission opcraiions.

TIc Covcrnncni Ias noiificd iIc Naiional Tariff Policy (NTP"i on January 6, 2006. TIis NTP Ias aidcd iIc
powcr rcforns ly ouilining guidclincs for nulii-ycar iariffs, raic of rciurns for gcncraiion and iransnission
projccis, iariff nodaliiics for uiiliiics, sulsidy io consuncrs and cross sulsidy calculaiions. TIcsc guidclincs
arc noi applicallc Iowcvcr, if iIc iariff is ficd iIrougI a iransparcni lidding proccss.

MHUFKDQW PRZHU PODQWV
McrcIani powcr planis (MPPs"i gcncraic clcciriciiy for salc ai narlci drivcn raics in iIc opcn wIolcsalc
narlci. Typically, iIc MPPs do noi Iavc long-icrn PPAs and arc luili and owncd ly privaic dcvclopcrs.
McrcIani salcs, Iowcvcr, includc salc of powcr undcr sIori-icrn PPAs and on spoi lasis. Many ncw privaic
sccior playcrs arc lcginning io adopi iIc MPP nodcl for iIcir projccis io gcncraic IigIcr rciurns as opposcd
io sclling powcr iIrougI a long icrn PPA, as iIc off ialc risl is pcrccivcd io lc low in vicw of significani
powcr sIoriagcs in iIc couniry. TIc MPPs can scll powcr io iIc powcr irading conpanics (lilc iIc Powcr
Trading Corporaiioni, iIc SEDs and indusirial and lull cusioncrs.

,QGLDQ EQHUJ\ ExFKDQJH (,EX)
Indian Encrgy EcIangc (IEX"i is India's firsi naiion-widc auionaicd and onlinc clcciriciiy irading plaiforn.
IEX sccls io caialyzc iIc nodcrnizaiion of clcciriciiy iradc in India ly allowing irading iIrougI a iccInology
cnallcd plaiforn. On Junc 9, 2008, IEX rcccivcd Ccniral Elcciriciiy Fcgulaiory Connission approval for
conncncing opcraiions. IEX is a dcnuiualiscd ccIangc iIai will cnallc cfficicni pricc discovcry and pricc
risl nanagcncni in iIc powcr irading narlci. IEX offcrs a lroadcr cIoicc io gcncraiors and disiriluiion
liccnsccs for salc and purcIasc of powcr faciliiaiing iradc in snallcr quaniiiics. IEX cnallcs pariicipanis io
prcciscly adjusi iIcir porifolio as a funciion of consunpiion or gcncraiion. (Sourcc. www.icindia.coni.



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Onc of iIc nain oljcciivcs of iIc iariff policy is io pronoic conpciiiion, cfficicncy in opcraiions and
inprovcncni in qualiiy of supply and cnsurc availaliliiy of clcciriciiy io consuncrs ai rcasonallc and
conpciiiivc raics. TIc Tariff Policy rciicraics iIc inporiancc of inplcncniing conpciiiion in diffcrcni
scgncnis of iIc clcciriciiy indusiry as IigIligIicd in iIc Elcciriciiy Aci, 2003 and iIai conpciiiion will lcad io
significani lcncfiis io consuncrs iIrougI rcduciion in capiial cosis and also cfficicncy of opcraiions. Ii will
also faciliiaic conpciiiivc pricing.

TIc policy siipulaics iIai all fuiurc powcr cquipncni nccds sIould lc procurcd conpciiiivcly ly disiriluiion
liccnsccs cccpi in cascs of cpansion of cisiing projccis or wIcrc iIcrc is a siaic conirollcd or siaic-owncd
dcvclopcr involvcd, in wIicI casc, rcgulaiors will nccd io rcsori io iariff dcicrninaiion lascd on norns. Evcn
PSUs will Iavc io lid for projccis io dcicrninc iariffs aficr a ccriain pcriod of iinc.

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TIc Elcciriciiy Aci 2003, rcquircs CEA io pullisI iIc Naiional Elcciriciiy Plan oncc in cvcry 5 ycars and
rcvisc iIc sanc fron iinc io iinc in accordancc wiiI iIc Naiional Elcciriciiy Policy. TIis plan scrvcs as a
roadnap for opiinun growiI of iIc powcr sccior. Undcr iIis plan, CEA fornulaics sIori icrn and
prospcciivc plans for iIc dcvclopncni of clcciriciiy sysicns and coordinaics iIc aciiviiics of iIc various
planning agcncics for iIc opiinal uiilisaiion of rcsourccs io scrvc iIc inicrcsis of iIc naiional cconony.

TIc Naiional Elcciriciiy Policy ains io acIicvc iIc following oljcciivcs.
Availaliliiy of clcciriciiy for all IouscIolds in iIc nci fivc ycars;
Powcr dcnand io lc fully nci ly 2012. Encrgy and pcaling sIoriagcs io lc ovcrconc and adcquaic rcscrvcs
io lc availallc;
Supply of rcliallc and qualiiy powcr of spccificd siandards in an cfficicni nanncr and ai rcasonallc raics;
Pcr capiia availaliliiy of clcciriciiy io lc incrcascd io ovcr 1000 lWI ly 2012;
Mininun lifclinc consunpiion of 1 unii1IouscIold1day as a ncrii good ly ycar 2012;
Financial Turnaround and Conncrcial Vialiliiy of Elcciriciiy Sccior; and
Proicciion of consuncrs' inicrcsis.

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TIc conccpi of rcduccd carlon cnissions canc inio cisicncc as a rcsuli of incrcasing awarcncss aloui glolal
warning and iIc nccd io conirol iIc grccnIousc gas (CHC"i cnissions. TIc Kyoio Proiocol is an
inicrnaiional agrccncni undcr Uniicd Naiions Francworl Convcniion on Clinaiic CIangc, adopicd io rcducc
CHC onissions. 156 counirics wIicI cnii 61.6% of glolal CHC Iavc raiificd iIc Kyoio Proiocol. Clcan
Dcvclopncni MccIanisn (CDM"i is a nccIanisn undcr iIc Kyoio Proiocol aincd ai rcducing CHC
cnissions. Ccriificd Enission Fcduciions (CEFs"i arc issucd for projccis, wIicI rcducc cnission of si
idcniificd CHC, in iIc dcvcloping naiions. EacI CEF is cquivalcni io onc ion of Carlon dioidc cquivalcni
rcduciion iIai Ias lccn acIicvcd. Dcvclopcd counirics iIai Iavc ccccdcd iIcir pcrniiicd CHC lcvcls can
rcducc cnissions ciiIcr iIrougI doncsiic aciions wiiIin iIcir naiional loundarics or iIrougI purcIasc of
CEFs. Trading of CEFs is sinilar io oiIcr financial insiruncnis sucI as siocls in ccriain dcsignaicd
ccIangcs. TIc nosi pronincni of iIcsc ccIangcs arc CIicago Clinaic EcIangc and Europcan Clinaic
EcIangc.
All rcncwallc cncrgy gcncraiion projccis, gas-lascd gcncraiion faciliiics and coal-lascd gcncraiion faciliiics
wiiI gcncraiion cfficicncy ncciing ccriain criicria arc cligillc for CEFs.

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TIc Minisiry of Powcr Ias sci a goalMission 2012. Powcr for All. Dascd on iIc 17iI EPS, iIc ioial cncrgy
rcquircncni in India will incrcasc io 968,659 CWI ly fiscal ycar 2012, 1,392,066 CWI ly fiscal ycar 2017
and io 1,914,508 CWI ly fiscal ycar 2022. TIis would lcad io an annual clcciric pcal load of 152,746 MW in
fiscal ycar 2012, 218,209 MW in fiscal ycar 2017 and 298,253 MW in fiscal ycar 2022. TIc noriIcrn rcgion is
cpccicd io coniriluic 30.1% and iIc wcsicrn rcgion is cpccicd io coniriluic 28.4% of iIc ovcrall annual
clcciric pcal load in fiscal ycar 2022. TIc Covcrnncni Ias csiinaicd iIc ioial invcsincni poicniial of iIc
sccior ai Fs. 9,000 lillion for a spccificd pcriod up io fiscal ycar 2011. TIis rcprcscnis a significani
opporiuniiy for capaciiy cpansion and growiI for powcr gcncraiion conpanics, loiI in iIc pullic and iIc


privaic sccior. In linc wiiI iIc aggrcssivc iargcis sci ly iIc govcrnncni, a conprcIcnsivc Dlucprini for Powcr
Sccior dcvclopncni Ias lccn prcparcd cnconpassing an inicgraicd siraicgy wiiI iIc following oljcciivcs.-

Sufficicni powcr io acIicvc a CDP growiI raic of 8%;
Fclialiliiy of powcr;
Inprovcd qualiiy of powcr;
Opiinal powcr cosi io cnsurc availaliliiy ai affordallc priccs; and
Conncrcial vialiliiy of powcr indusiry io nalc ii aiiraciivc for privaic sccior pariicipaiion.

TIc Covcrnncni, iIrougI iIc Minisiry of Powcr, Ias laid oui iIc following lroad siraicgics io acIicvc iIcsc
oljcciivcs.
Powcr Ccncraiion Siraicgy focusing on low cosi gcncraiion, opiinizaiion of capaciiy uiilizaiion, conirolling
inpui cosis, opiinisaiion of fucl ni, iccInology upgradcs and uiilizaiion of non convcniional cncrgy sourccs;
Transnission Siraicgy focusing on dcvcloping iIc Naiional Crid, including inicrsiaic conncciions,
iccInology upgradcs and opiinizaiion of iransnission cosi;
Disiriluiion Siraicgy acIicving disiriluiion rcforns ly focusing on sysicn upgradcs, loss rcduciion, iIcfi
conirol, consuncr scrvicc oricniaiion, qualiiy powcr supply conncrcializaiion, dcccniralizcd disiriluiion and
supply for rural arcas;
Fcgulaiion Siraicgy proicciing consuncr inicrcsis and naling iIc sccior conncrcially viallc;
Financing Siraicgy io gcncraic rcsourccs for rcquircd growiI of iIc powcr sccior;
Conscrvaiion Siraicgy io opiinisc iIc uiilizaiion of clcciriciiy wiiI a focus on dcnand-sidc nanagcncni,
load nanagcncni and iccInology upgradcs io providc cncrgy cfficicni cquipncni; and
Connunicaiion Siraicgy forning poliiical conscnsus wiiI ncdia suppori io cnIancc pullic awarcncss.























BUS,NESS OVERV,EW
OYHUYLHZ
PIillips Carlon Dlacl Liniicd (PCDL" or our Conpany"i, pari of iIc FPC Croup of Conpanics, was onc of
iIc pionccrs of iIc carlon llacl indusiry in India.

Our Conpany, incorporaicd in 1960, siaricd produciion fron Dcccnlcr 1962 using iIc oil furnacc
iccInology, iIc nosi widcly acccpicd nanufaciuring proccss of carlon llacl paicnicd ly iis iIcn collaloraior
and world carlon llacl lcadcr, PIillips Pcirolcun Conpany, USA. TIc collaloraiion wiiI PIillips Pcirolcun
Conpany cndcd in 1978 and our Conpany Ias sincc nadc considcrallc progrcss ly viriuc of coniinucd
cfforis of iccInologisis, cnginccrs and susiaincd F&D aciiviiics.

In 1988 our Conpany cnicrcd inio a iccInical agrccncni wiiI Colunlian CIcnicals Conpany, USA, and
acquircd acccss io iIc nodcrn siaic-of-iIc-ari Carlon Dlacl iccInology. TIis Iclpcd our Conpany in gaining
flcililiiy, lciicr produci rangc, produciion capaciiy and cncrgy conscrvaiion. TIc iccInical agrccncni cndcd
in 1998.

Prcscnily our Conpany Ias insiallcd capaciiy of producing 3,60,000 Mciric Tonncs Pcr Annun (MTPAi of
Carlon Dlacl along wiiI grccn powcr capaciiy of 60.50 Mcga Waii (MWi.

Our Conpany Ias nanufaciuring faciliiics ai 4 locaiions i.c., Durgapur in Wcsi Dcngal, Palcj and Mundra in
Cujarai and KocIi in Kcrala and a wcll-organizcd disiriluiion nciworl covcring supplics io all iyrc
nanufaciuring uniis, iyrc rc-ircading uniis and oiIcr consuncrs all ovcr iIc couniry. Our Conpany is
cpanding carlon llacl capaciiy io ialc advaniagc of iIc growing dcnand and is sciiing up co-gcncraiion
powcr planis io dc-risl lusincss nodcl and lolsicr opcraiing nargins.

Our Conpany Iad ialcn advaniagc of iIc Elcciriciiy Aci iniroduccd in 2003 io sciup a 12 MW co-gcncraiion
powcr plani (CPPi ai iis Palcj plani during FY 2005 using iIc off gas cniiicd fron iis carlon llacl plani (OII
GDV"i.

Encouragcd ly iIc succcss of iIc Palcj CPP, our Conpany Ias sci up a 30 MW CPP ai iis Durgapur plani
wIicI conncnccd conncrcial opcraiions fron 1
si
April 2009. Our Conpany also Ias a 2.5 MW CPP ai iis
plani locaicd ai KocIi, Kcrala.

Our conpany Ias furiIcr conplcicd iis Crccnficld projcci locaicd in Mundra (Cujaraii, wiiI a carlon llacl
capaciiy of 90,000 MT wIicI Ias siaricd opcraiions fron 17
iI
Ociolcr 2009 and our Conpany Ias also pui
up a CPP of 16 MW in Mundra wIicI Ias conncnccd conncrcial opcraiion fron 24
iI
Dcccnlcr 2009.

To ncci iIc growing dcnand of carlon llacl, loiI in iIc doncsiic and inicrnaiional narlcis, our Conpany
Ias planncd io furiIcr cpand iis carlon llacl capaciiy ly 50,000 MT ai Mundra. As a rcsuli, our Conpany's
insiallcd capaciiy for Carlon Dlacl will rcacI io 4,10,000 MT.

Our Conpany Ias also planncd io sci up CPPs (using off gasi aggrcgaiing 16 MW i.c., 10 MW ai KocIi and 6
MW ai Mundra, and io dcconnission iIc cisiing 2.5 MW CPP ai KocIi, Kcrala. Aficr conplciion of iIcsc
cpansions, our Conpany's grccn powcr gcncraiion capaciiy will rcacI 74 MW.

WiiI iIc oljcci io carvc a nicIc in Ovcrscas Marlcis our Conpany Iad also cnicrcd inio a joini vcniurc
agrccncni wiiI iIrcc sulsidiary conpanics of VinacIcn on 9
iI
May 2008 for sciiing up a 1,15,000 MT
carlon llacl faciliiy and a 16MW powcr unii in pIascs in Vicinan in wIicI our Conpany sIall Iold 80%
sialc iIrougI a spccial purposc vcIiclc and iIc iIrcc sulsidiary conpanics of VinacIcn would picl up 20%
sialc.




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Our Conpany is pari of iIc group of conpanics wiiIin iIc FPC Croup wIicI conpriscs various affiliaicd
cniiiics conirollcd ly iIc Cocnla fanily, wIicI dirccily or indirccily owns 53.89 pcr ccni of our Conpany.

TIc FPC Croup is aciivc in various lusincsscs. Powcr, Transnission, Tyrcs, Carlon Dlacl, Fciailing,
Infornaiion TccInology and Mcdia.

TIc aciiviiics of iIc nain conpanics wiiIin iIc FPC Croup arc prcscnicd as follows .

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Carlon Dlacl
Plani
1,40,000 MT 90,000 MT 40,000 MT 90,000 MT 3,60,000 MT
Co- gcncraiion
Powcr Plani
30 MW 12 MW 2.5 MW 16 MW 60.50 MW

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Carlon Dlacl Plani - 50,000 4,10,000 MT
Co- gcncraiion
Powcr Plani
10 MW^ 6 MW 74MW

^ cisiing CPP of 2.50 MW will lc dcconnissioncd.

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Our principal conpciiiivc sircngiIs arc sci foriI lclow.

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Earlicr, our Conpany uscd io cnii iIc wasic gas lui now our Conpany is uiilizing iIc off gas cniiicd wIilc
producing carlon llacl, io gcncraic grccn powcr iIai is uscd for capiivc consunpiion as wcll as for ncrcIani
salcs. TIis lrings addiiional rcvcnuc and also incrcascs iIc opcraiing nargin, wIicI providcs susiainallc
loiion-linc. Using iIc wasic gas io gcncraic powcr Ias nadc our Conpany iIc firsi carlon llacl conpany io
lc cligillc for carlon crcdiis. Ii rcccivcd Fs. 277.77 lalIs of Ccriificd Enission Fcduciion (CEFsi in FY08.
TIis Iclpcd in incrcasing iIc ovcrall EDIDTA nargins. TIis Iclps our Conpany io incrcasc iis opcraiing profii
nargins in iwo ways- (ii ii rcduccs iIc ovcrall powcr cosi and (iii iIc surplus powcr sold iIcrcly incrcasing
iIc ovcrall nargins. TIc powcr iIus sold is ccnpi fron inconc ia for 10 ycars. Dciwccn 2005 and 2012,
iIc Clcan Dcvclopncni MccIanisn (CDMi projcci ai Palcj is cpccicd io gcncraic ovcr 3.0 lalI CEFs valucd
ai Fs. 1800 lalIs ai currcni narlci priccs.
Our oiIcr powcr planis ioialing io 60.50MW co-gcncraiion powcr planis ai Durgapur, Mundra and KocIi, will
also usc proccss of wasic gas fron iIc plani and our conpany will gradually rcgisicr iIcnsclvcs wiiI Clcan
Dcvclopncni MccIanisn (CDMi.



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Currcnily, our Conpany ranls 8
iI
in iIc glolal carlon llacl indusiry. TIc narlcis in wcsicrn Europc, NoriI
Ancrica and Japan Iavc iigIicncd iIcir cnission norns duc io wIicI furiIcr cpansions in iIcsc counirics
Iavc ciiIcr lccn siagnaicd or wiincssing dcgcncraiion in iIc rcccni pasi. TIc cosi of opcraiing carlon plani
in iIc aforcsaid gcograpIics is lcconing proIiliiivc.
Ranking Company Capacity Ranking Company Capacity
MMT MMT
1 Cabot, USA 2.01 6 SID Richardson, USA 0.45
2 Evonik, Germany 1.45 7 Tokai Carbon , Japan 0.37
3 Columbian (incl DC), 1.13 8 PCBL, India 0.36
USA 9 Omsktechuglerod, 0.35
4 Birla Group, India 0.79 Russia
5 CSRC & Continental, 0.74 10 Black Cat, China 0.29
Taiwan

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Our Conpany Ias lccn cngagcd in iIc produciion of Carlon Dlacl for alnosi 50 ycars and Our Conpany is
nanagcd ly a ican of qualificd and IigIly cpcricnccd profcssionals. Our Conpany lclicvcs iIai iIc
cicnsivc lcvcl of cpcricncc of iIc nanagcncni ican is a significani sircngiI of our Conpany's lusincss.

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FPC group is onc of iIc lcading indusirial Iouscs in India. Ii is a widcly rccogniscd lrand nanc in India and
Ias opcraiions in iIc scvcral lcy scciors of iIc Indian cconony. Sonc of iIc FPC group conpanics Iavc lccn
opcraiing in India for ovcr 100 ycars and arc involvcd in ccriain lcy scciors of iIc India cconony sucI as
Powcr, Transnission, Tyrcs, Carlon Dlacl, Organizcd Fciailing, Infornaiion TccInology, PIarnaccuiicals,
Mcdia and Planiaiions. Wc lclicvc iIai our associaiion wiiI iIc FPC group Ias cnallcd us io alsorl iis
corporaic valucs and principlcs and adIcrc io iIc csiallisIcd corporaic govcrnancc praciiccs. Wc also lclicvc
iIai our associaiion wiiI iIc FPC Croup aids us in winning ncw lusincsscs and oliaining financial
assisiancc.

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Wc Iavc lccn prcscni in iIc Carlon Dlacl indusiry for scvcral ycars, wIicI, Ias Iclpcd us in undcrsianding
iIc cIanging nccds and dcnands of our cusioncrs in India. WiiI consiani inprovcncni in pcrfornancc of
our producis, augncnicd wiiI qualiiy and rccogniiion of our lrand, wc lclicvc iIai wc cnjoy considcrallc
lrand cquiiy and rclialiliiy in iIc narlci.


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Our rcscarcI and dcvclopncni capaliliiics couplcd wiiI our iccInology and our siringcni qualiiy and icsiing
siandards allow us io offcr a widc rangc of producis wIicI arc alrcasi wiiI iIc laicsi iccInological
advanccncnis, and Iclp us ncci iIc cpcciaiions and dcnands of our consuncrs and cusioncrs.

1. Spccific arcas in wIicI F & D carricd oui ly our Conpany .
PCDL Ias succcssfully dcvclopcd ncw gradcs sucI P 1201, P842, PC501 and N134 for
Inicrnaiional and doncsiic narlci.
Inprovcncni of produci cIaracicrisiics io ncci norc siringcni cusioncr spccificaiions.
Coniinuous rccasiing of Siandard Opcraiing Proccdurcs.

2. Dcncfiis dcrivcd as a rcsuli of iIc alovc F & D .
Inprovcd salcs in doncsiic and cpori narlci.
HigIcr pricc rcalisaiion in narlcis.



3. Fuiurc Plan of Aciion .
1. Dcvclopncni of spccializcd gradcs for spccializcd gradcs for spccific applicaiions in conjunciion
wiiI cusioncrs.
2. Inprovcd Fcacior dcsign for IigIcr yicld.

4. Epcndiiurc on F & D. Fs. In lalIs
31.03.2009 31.03.2008
ai Capiial ---- ----
li Fccurring 299.58 309.15
ci Toial 299.58 309.15
di Toial F & D Epcndiiurc as a pcrccniagc of ioial
cpcndiiurc
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Our Conpany Ias always nainiaincd IigI qualiiy wiiI rcgard io iis dclivcrallcs. Fron iinc io iinc ii Ias
rcccivcd scvcral accoladcs and awards for iis acIicvcncni in producing IigI qualiiy producis. Wc Iavc lccn
using iIc Toial Produciivc Mainicnancc and Toial Oualiiy Managcncni iccIniqucs ai our faciorics io naicI
inicrnaiional qualiiy siandards. Our Conpany Ias ii Oualiiy Assurancc Plans, and cacI inpui Ias io saiisfy
ii, lcforc scnding ii for produciion.

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Our Conpany opcraics four Carlon Dlacl nanufaciuring planis locaicd in Kcrala, Cujarai and Wcsi Dcngal.
Our Conpany lclicvcs ii Ias cIiliicd a provcn aliliiy io nanagc largc-scalc opcraiions, qualiiy conirol
nccIanisns and cnploy innovaiivc iccInologics across iis four faciliiics. Our Conpany lclicvcs iIc cosi and
conplciiy involvcd in csiallisIing sucI a plaiforn rcprcscnis significani larricrs io cniry fron poicniial
conpciiiors. EacI of our Conpany's planis Ias in placc an cIausiivc qualiiy nanagcncni sysicn wiiI
dcdicaicd on-siic qualiiy assurancc icans. Our Conpany's planis arc siraicgically locaicd across India wIicI
rcduccs logisiical cosis and nininizcs iIc risl of lusincss inicrrupiion rcsuliing fron naiural disasicrs and
local poliiical or lalor issucs. Our Conpany lclicvcs iIc ovcrall capaciiy of iis planis providcs ii wiiI
significani ccononics of scalc and iIai iis siaic-of-iIc-ari cquipncni cnallcs ii io producc IigI qualiiy
producis iIai ncci iIc varying cpcciaiions of iis divcrsc cusioncr lasc.


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WiiI iIc connissioning of iIc Powcr planis alongsidc wiiI iIc Carlon Manufaciuring planis, our Conpany
Ias dc-rislcd iIc unprcdicialiliiy in supply and availaliliiy of Powcr and also nininizcd iis cosi of
produciion and iIcrcly incrcascd iis opcraiing nargin. Also iIc salc of surplus powcr gcncraicd Ias addcd io
iIc loiion linc of our Conpany significanily.

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Principal clcncnis of our siraicgy includc iIc following.

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To ncci iIc growing dcnand of carlon llacl, loiI in iIc doncsiic and inicrnaiional narlcis, PCDL Ias
planncd io cpand iis carlon llacl capaciiy ly 50,000 MT ai Mundra and 16 MW CPP ai Mundra (6MWi and
KocIi (10MWi. As a rcsuli, PCDL's insiallcd carlon llacl capaciiy will rcacI 4,10,000 MT and powcr
gcncraiion capaliliiics will rcacI 74 MW aficr dcconnissioning iIc cisiing 2.5 MW CPP ai KocIi.





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WiiI iIc oljcci io carvc a nicIc in Ovcrscas Marlcis our Conpany Iad also cnicrcd inio a joini vcniurc
agrccncni wiiI iIrcc sulsidiary conpanics of VinacIcn on 9
iI
May 2008 for sciiing up a 1,15,000 MT
carlon llacl faciliiy and a 16MW powcr unii in pIascs in Vicinan in wIicI our Conpany sIall Iold 80%
sialc iIrougI a spccial purposc vcIiclc and iIc iIrcc sulsidiary conpanics of VinacIcn would picl up 20%
sialc.

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Wc lclicvc iIai our Conpany Ias posiiioncd iisclf in iIc narlci wiiI sirong narlciing nciworl as a onc of
iIc lcsi carlon Dlacl nanufaciurcr. As a lusincss siraicgy wc would lilc io coniinuc io cnIancc our narlci
lcadcrsIip furiIcr. Wc Iavc laid a clcar roadnap io acIicvc iIis ly inproving furiIcr produciion cfficicncics
in iIc nanufaciuring proccss ly focusing our aiicniion in cpanding furiIcr in iIc doncsiic and
inicrnaiional narlci. Wc would also lccp coniinuing our focus on qualiiy, cccuiion and iincly dclivcry of
producis and cfficicni aficr salc scrviccs nainiaining a sirong ican oricnicd and cusioncr fricndly culiurc.

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Our Conpany will sirongly coniinuc iis policy of iraining iis worl forcc wiiI adcquaic produci lnowlcdgc,
narlci lnowlcdgc and alovc all iIc applicaiion of lnowlcdgc io iIc indusiry. Our Conpany sIall always
focus on narrowing iIc IicrarcIy for frcc and iransparcni iwo-way connunicaiion lciwccn nanagcncni and
cnployccs for lciicr ccIangc of idcas, vicws and opinions for nainiaining good conpciiiivc worl ainospIcrc
ai all lcvcls.

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Our Conpany iool advaniagc of iIc Ccniral Elcciriciiy Aci 2003 and sci up a 12 MW co-gcncraiion powcr
plani ai Daroda using iIc proccss wasic gas. TIis rcsulicd in sulsianiial saving in cosi of powcr for
nanufaciuring Carlon Dlacl. So our Conpany planncd io connission co-gcncraiion powcr plani ai all iIc
placcs wIcrc iis Carlon Dlacl nanufaciuring faciliiics arc locaicd and Iavc alrcady connissioncd a 30MW
plani ai Durgapur and 16MW powcr plani ai Mundra. TIc rcvcnuc gcncraicd fron iIc Powcr scgncni Ias
grown ai a CACF of 23.34% fron Fs. 826 lalIs in iIc FY06 io Fs. 1550 lalIs in iIc FY09. Using iIc wasic
gas io gcncraic powcr Ias nadc our Conpany iIc firsi carlon llacl conpany io lc cligillc for carlon crcdiis.
Our Conpany rcccivcd Fs. 277.77 lalIs of Ccriificd Enission Fcduciion (CEFsi in FY08. TIis Iclps in
incrcasing iIc ovcrall EDIDTA nargins.
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1960 Incorporaicd on 31
si
MarcI as a Pullic Liniicd Conpany in collaloraiion wiiI PIillips Pcirolcun
Conpany, USA
1962 Siaricd produciion wiiI iIc nosi widcly acccpicd nanufaciuring proccss of carlon llacl wiiI
insiallcd capaciiy of 14,000 MT ai Durgapur
1974 Durgapur capaciiy cnIanccd io 36,000 MT
1978 Iis collaloraiion cndcd wiiI PIillips Pcirolcun Conpany, USA
1988 Enicrcd inio a iccInical agrccncni wiiI Colunlian CIcnicals Conpany USA
1995 Durgapur capaciiy cnIanccd io 78,000 MT
1996 Acquisiiion of Carlon Dlacl unii of Cujarai Carlon Lid adding 25,000 MT (Toial Capaciiy cnIanccd
io 103,000 MTi
1997 Analganaiion wiiI Carlon and CIcnicals Lid, KocIi adding 40,000 MT (Toial Capaciiy 143,000
MTi and 2.5 MW CPP
1998 Iis collaloraiion cndcd wiiI Colunlian CIcnicals Conpany USA
1998 Durgapur capaciiy incrcascd io 1,10,000 MT (Toial Capaciiy 1,75,000 MTi
2003 Durgapur capaciiy incrcascd io 1,35,000 MT (Toial Capaciiy 2,00,000 MTi
2004 Daroda Epansion of 70,000 MT (Toial Capaciiy 2,70,000 MTi



PURGXFWV
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QHHGV RI HODVWRPHU, SODVWLF, SDLQWV, FDbOHV DQG LQkV PDQXIDFWXULQJ LQGXVWULHV. TIc rullcr indusiry uscs
a ioial of 95% of carlon llacl produciion wIilc iIc rcsi is consuncd ly plasiics, painis and dry cclls. In
doncsiic narlci, our conpany is rcgular supplicr io all iIc najor iyrc nanufaciurcrs and Ias an ovcrall
doncsiic sIarc of around 40%. PCDL coniinucs io lc iIc iIc undispuicd lcadcr in iIc ficld of carlon llacl in
India. Ii nanufaciurcs all four sofi gradcs for iIc plasiic indusiry.
CDUbRQ BODFk is lroadly classificd inio iwo caicgorics viz. HDUG BODFk (TUHDG BODFk) DQG SRIW BODFk
(CDUFDVV BODFk). HDUG BODFk is gcncrally uscd in applicaiions dcnanding IigI alrasion rcsisiancc i.c. wIicI
concs in coniaci wiiI iIc road and arc suljcci io IigIcr friciion wIilc SRIW BODFk is uscd for applicaiions
dcnanding IigI nodulus i.c. for iIc sidc wall of iyrcs.



Produci nanc (as on lalcli . Oricni Dlacl N110, N115, N219, N220, N231, N234, N299, N326, N330, N339,
N347, N351, N375, N550, N650, N660, N762, N765, N772, N774, P1201, P824, P842, P353, P435, P287 &
PC501.

PCDL, is cngagcd in four nain siagcs of proccssing i.c. Cracling, Filicring, Pcllciisaiion, Drying. PCBL Ias
capaliliiy & flcililiiy io producc any ASTM gradc for iIc produci. BHVLGHV ASTM gradcs, PCDL also
nanufaciurcs cusionizcd produci spccific io a cusioncr. In iIc narlci iIc producis arc availallc in iIrcc
diffcrcni forns of paclaging - 25 Kg. Papcr Dag, 500 Kg. Dull Dag & 1000 Kg. Junlo Dag.

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PCDL Ias four nanufaciuring uniis locaicd in Durgapur in Wcsi Dcngal, KocIi in Kcrala and Palcj and
Mundra (Cujaraii.
PCDL Durgapur Unii Ias now a produciion capaciiy of 1,40,000 MT pcr ycar wiiI a provcn capaliliiy io
producc 24 gradcs of carlon llacl iIrougI succcssivc siagcs of nodcrnizaiion and cpansion. Ii is ISO-9001
ccriificd, and is iIc only Carlon Dlacl nanufaciurcr in Asia io Iavc acIicvcd iIis disiinciion. TIc Durgapur
unii Ias also rcccivcd iIc OS-9000 in Dcccnlcr 2000, and Ias iniiiaicd iIc Environncnial Managcncni
Sysicn (EMSi aciiviiics for rccciving ISO 14001 Ccriificaiion. KocIi plani oliaincd ISO 9002 . 1994
Ccriiificaic in 1998, wIicI was followcd soon aficr ly iIai of iIc Palcj plani. KocIi Plani Ias also laggcd iIc
Environncni Managcncni Sysicn (EMSi siandard accrcdiiaiion undcr iIc 14001 . 1996.
2005 12 MW powcr plani ai Palcj, Daroda
2009 Conncnccncni of 30 MW Powcr Plani ai Durgapur on 1
si
April, 2009
2009 Conncnccncni of 90,000 MT Carlon Dlacl Plani ai Mundra on 17
iI
Ociolcr 2009 (Toial Capaciiy
3,60,000 MTi.
2009 Conncnccncni of 16 MW Co-gcncraiion Powcr Plani ai Mundra, Cujarai on 24
iI
Dcccnlcr, 2009
(Toial Capaciiy 60.5 MWi


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2008 2009 2010
(Esiinaicdi
2008 2009 2010
(Esiinaicdi
Durgapur
Plani
27, F. N. MulIcrjcc
Foad
Durgapur- 713 201
Disi. Durdwan
98% 82% 91% 1,37,238 1,14,797 1,27,249
Palcj Plani Naiional HigIway No. 8
Palcj . 392 220
Disi. DIarucI
99% 87% 99% 94,228 83,068 92,917
KocIi Plani Karinugal
DraInapuran P.O.
KocIi 682 303
93.75% 71.78% 89% 38,011 32,754 35,704
Mundra Plani
(ncw planii
Survcy No. 47, SH-46,
Villagc (MolIai(Ncar
Vadalai Mundra
Disi, luicI, Cujarai -
370421
- - - - - 22,884

capaciiy uiilizaiion is noi availallc as Mundra is ncw plani.







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PHILLIPS CARBON BLACK LIMITED
CARBON BLACK
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ai PCDL nanufaciurcs Carlon Dlacl ly a proccss lnown as iIc 'Oil Furnacc Proccss'. Carlon Dlacl Fccd
Siocls (CBFS"i uscd as raw naicrials arc Iydrocarlon oils ricI in carlon conicni of pcirolcun and coal iar
origin. PrcIcaicd air and oil fccdsiocl arc injccicd in a rcacior lincd wiiI IigI icnpcraiurc rcfraciorics, lcpi
ai a icnpcraiurc of 1200C-1600C, wIcrc iIc fccdsiocl undcrgocs 'cracling' or dcconposiiion.

li TIc dcconposiiion of iIc fccdsiocl is in dcficicncy of air and undcr carcfully conirollcd condiiions, rcsulis
in iIc fornaiion of carlon llacl aggrcgaics. TIc rcaciion, wIicI ialcs placc in a fcw nilliscconds, is sioppcd
ly waicr qucncI. TIc rcsuliani snolc carrying carlon llacl is qucncIcd wiiI waicr sprays and passcd
iIrougI Icai ccIangcrs, wIicI in iurn is uscd io prcIcai iIc inlci oil and air, iIus acIicving conscrvaiion of
cncrgy and inproving iIc yicld.

ci TIc produci sircan i.c. snolc, is furiIcr coolcd ly sccondary waicr qucncIing in vcriical iowcrs. Ii iIcn
cnicrs lag filicrs wIcrc carlon llacl is scparaicd fron gas. TIc lyproduci callcd 'off-gas' Iaving low calorific
valuc (around 650-700 Kcal1NM
3
avcragci is lurni and iIc Icai is uiilizcd for gcncraiion of sican for drying
opcraiion and gcncraiion of powcr.

di Scparaicd carlon llacl dusi is pncunaiically convcycd io a pcllciiscr wIcrc wiiI iIc Iclp of waicr
soluiion and IigI gyraiing forcc, pcllcis arc forncd wIicI arc dricd in roiary drycrs and finally siorcd in
produci sioragc ianls. Carlon llacl is paclcd in Papcr lags1 Dull lags.

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Carlon Dlacl nanufaciuring iccInology io lc uscd in iIc plani is wiiI IigI conicni of scicniific rcscarcI and
iccInological dcvclopncni, inicgraicd fron nodcrn scicncc and iccInology acIicvcncnis and producc
produci wiiI IigI qualiiy and addcd valuc. Dclow is iIc sunnary of Carlon Dlacl nanufaciuring iccInology.
(i) In ordcr io producc and providc soluiions for nano sizcd pariiclcs, Carlon Dlacl is produccd
undcr closcly conirollcd condiiions in circnc nanufaciuring icnpcraiurcs io producc
diffcrcni pariiclc sizcs in a vcry fasi rcaciion; lasiing for fcw nilliscconds.


(ii) TIc alovc rcquircs propriciary nanufaciuring iccIniqucs and iccInologics pcrfccicd aficr
ycars of rcscarcI and dcvclopncni. PCDL Ias goi paicni for iIis iccInology.
(iii) TIc dcvclopncni of a Hi-TccInology Fcacior and cquipncni dcsign rcquircs cicnsivc usc of
nodcrn dcsign iools lilc Conpuiaiional Fluid Dynanics, wIicI producc closc dincnsional
gconcirics for cfficicni Fcaciors, wIicI Iclp io producc nano pariiclcs in a conirollcd rangc,
produccd ai vcry IigI icnpcraiurc (1,830
o
1,950
o
i. TIc IigI icnpcraiurcs arc closc io iIc
iolcrancc liniis of iIc naicrial lcing uscd, Icncc naling iIc cniirc proccss vcry criiical.
(iv) TIc proccss is pusIcd io iIcsc IigI icnpcraiurc liniis io gci iIc lcsi cfficicncics for acIicving
low carlon fooiprinis and nalc iIc proccss cnvironncnially fricndly.
(v) Carlon Dlacl proccss dcvclopcd and uscd ly PCDL Ias lccn dcvclopcd on inicgraiing,
ciraciing and uiilizing iIc nainun possillc cncrgy uiilizaiion fron iIc proccss for fruiiful
usc. TIis involvcs usc of IigI icnpcraiurc Icai ccIanging cquipncnis, wIicI again arc
lascd on propriciary dcsign and usc of naicrials wiiI spccializcd propriciary nciallurgy and
dcsign, lascd on arcas of IigI-iccInology.
(vi) Usc of proccss off-gas gcncraicd in iIc produciion proccss for gcncraiing of sican and powcr
as conlincd Icai rccovcry sysicn Ias lccn pcrfccicd and nasicrcd ovcr iIc ycars ly PCDL
and is ioday a siaic-of-iIc-ari iccInology wIcrc cniirc wasic gas is uscd cfficicnily for
gcncraiion of powcr.
(viii HigI sopIisiicaicd Elccironic Insiruncniaiion sysicn arc rcquircd for noniioring and
conirolling iIc IigI icnpcraiurc fasi convcrsion rcaciion c.g. advanccd Disiriluicd Conirol
Sysicn, infra-rcd pyroncicrs and clccironic scnsors for conirolling iIis conplc proccss.
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Wc Iavc a sirong focus on iIc rcscarcI and dcvclopncni of producis, proccsscs and nacIinc iccInology io
cndcavour io acIicvc a lcading posiiion in our narlci. In ordcr io acIicvc iIis, wc.
cndcavor io nainiain IigIly iraincd and cpcricnccd cnployccs
usc iIc laicsi iccInology availallc worldwidc, io crcaic IigI qualiiy producis;
sirivc io carry on luilding on our sircngiI wiiI rcspcci io iccInological cdgc;
coniinuc io dcvclop ncw nanufaciuring & icsiing faciliiics io clininaic dcfccis in our producis; and
providc iraining io our cnployccs worling.

Our nanagcncni is conniiicd io providing all ncccssary rcsourccs for rcscarcI and dcvclopncni in ordcr io
acIicvc iIc alovc siaicd oljcciivcs. Wc arc IigIly conccniraiing on iIc dcvclopncni of non convcniional
llacl, dcvclopncni of low Iysicrcsis wcar rcsisiancc llacl for iyrc applicaiion, frcc flow cnvironncnially
fricndly polyncr coaicd1 lascd llacl and dcvclopncni of Dual PIasc Fillcr ( silica coaicd carlon llacl i io
fulfill our cusioncr rcquircncni and spccificaiions.
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Our qualiiy policy ains ai fulfilling of cusioncr's rcquircncnis iIrougI rcliallc producis and scrviccs ,
ncciing all rcgulaiory rcquircncnis and iIrougI coniinual inprovcncni of our lusincss iccInology and
proccsscs." Wc arc conniiicd io providc cusioncr saiisfaciion ly siricily conforning io cusioncr
rcquircncnis and spccificaiions. An oiIcr inporiani conponcni in qualiiy assurancc is iIc inprovcncni of
nanufaciuring proccsscs and adopiion of nany siandardizaiion and opiinizaiion proccdurcs io nainizc iIc


yicld and produci qualiiy in nanufaciuring carlon llacl. WiiI iIc pariicipaiion of our cnployccs,
Inicrlaloraiory1 Proficicncy Tcsi (PTi Prograns Iavc lccn succcssfully launcIcd. For iIc produciion of
diffcrcni gradcs of carlon llacl fron all uniis approvals fron loiI iIc inicrnaiional as wcll as doncsiic
cusioncrs Iavc lccn rcccivcd. Our Conpany assurcd io lc an cnvironncni fricndly organizaiion in iIc ncar
fuiurc.

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Wc Iavc a wcll csiallisIcd salcs and narlciing nciworl dividcd inio doncsiic and inicrnaiional narlcis and
arc again sul-dividcd inio diffcrcni gcograpIic rcgions. PCDL is iIc largcsi playcr in India Iaving IigIcsi
doncsiic narlci sIarc. Ii supplics io najor Tyrc conpanics, Non Tyrc and spccialiiy scgncni.

Doncsiic.
Doncsiic Cusioncrs Iavc lccn classificd as Tyrc and Non Tyrc. TIc najor consuncr for carlon llacl is iIc
iyrc indusiry. TIcsc arc ncnlcr of ATMA and producc iIc cniirc rangc of iyrcs fron Trucl Dus Tyrcs io ADV
(aninal drawn vcIiclcsi. PCDL supplics iyrcs io all najor Tyrc conpanics lilc Apollo, MFF Dirla, Ccai cic.
PCDL ains io acIicvc scrvicc and qualiiy lcadcrsIip and lc iIc Prcfcrrcd Supplicr". In iIc Non narlci
najor uscrs arc Trcad rullcr, Cyclcs iyrcs, V lclis, convcyor lclis rullcr profilc cic.

TIc doncsiic narlci is scrviccd iIrougI fivc lrancIcs locaicd in DclIi, Munlai, Kollaia, KocIi and
CIcnnai. Carlon Dlacl is a IigIly inicnsivc produci. TIcrcforc an inporiani facior in iIc carlon llacl
lusincss is proiniiy io iIc cnd uscr. In ordcr io Iavc a widcr rcacI cspccially for rciail cusioncrs, PCDL Ias
a largc nciworl of Agcnis and WarcIouscs. Currcnily PCDL Ias iis own WarcIouscs and scvcral consignncni
agcnis wIo Iold siocls all ovcr India in Ncw DclIi, UP, Punjal, FajasiIan, MaIarasIira, Cujarai, Kcrala ,
Tanil Nadu and AndIra PradcsI.

Epori.
Ovcrscas cusioncrs arc Iandlcd ly iIc cpori dcparincni ai HO Kollaia. TIcrc arc couniry spccific agcnis
wIo opcraic on lcIalf of PCDL for ordcr procurcncni. PCDL is currcnily cporiing io ovcr 20 counirics. WiiI
cpanding iis capaciiy PCDL`s cpori sIarc is cpccicd io risc io 30% of iIc ioial salcs. WiiI iIc incrcasc in
dcnand of our produci our Conpany is cporiing goods io iIc Counirics lilc Sri Lanla, Vicinan, Malaysia
and PIilippincs.
Spccialiy Dlacl. PCDL is siraicgically focusing on iIis scgncni. In iIc Spccialiiy Dlacl scgncni, salcs of iIc
plasiic nasicr laicI, priniing inls, callcs and painis arc nainly conccrncd.

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Wc scll our producis in IigIly conpciiiivc narlcis. Duc io iIc connodiiy naiurc of our producis,
conpciiiion in iIcsc narlcis is lascd prinarily on dcnand and pricc. As a rcsuli, io rcnain conpciiiivc in
our narlcis, wc nusi coniinuously sirivc io rcducc our cosis of produciion, iransporiaiion and disiriluiion
and inprovc our opcraiing cfficicncics. Ccriain conpciiiors nay lc largcr iIan us and nay Iavc significanily
grcaicr financial rcsourccs iIan us. SucI conpciiiors nay also lcncfii fron grcaicr ccononics of scalc and
opcraiing cfficicncics. Sonc conpciiiors also Iavc a lroadcr rangc of producis wIicI arc suljcci io diffcrcni
nargin prcssurcs wIicI nalcs iIcn lcss susccpiillc io cyclical downiurns.

Wc lclicvc iIai wc arc anong iIc lcading supplicrs for carlon llacl in India, and cnjoys a significani narlci
sIarc in iIis scgncni. Wc lclicvc iIai wc Iavc an csiallisIcd lrand in iIc carlon llacl scgncni in India.

Our najor conpciiiors in iIis ficld arc Caloi in USA, Evonil in Ccrnany, Colunlian in USA, Dirla in India,
CSFC in Taiwan, Sid FicIardson in USA, Tolai in Japan, Onsl in Fussia and Dlacl Cai in CIina.

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Wc lclicvc iIai wc conply in all naicrial rcspccis wiiI local, siaic and ccniral govcrnncnial occupaiional
IcaliI and safciy laws, rcgulaiions and oiIcr nandaiory rcquircncnis rclcvani io IcaliI and safciy of
cnployccs, coniraciors and visiiors io our opcraiional faciliiics.



Wc arc conniiicd io occupaiional IcaliI and safciy of our worlcrs and Iavc a goal of zcro Iarn. TIc
nanagcncni rcgularly scis IcaliI and safciy iargcis io coniinually rcducc risl of Iarn io cnployccs,
coniraciors and visiiors io opcraiional faciliiics. Wc nainiain an occupaiional IcaliI and safciy nanagcncni
sysicn iIai dcfincs guiding principlcs and siandards for occupaiional IcaliI and safciy pcrfornancc.
Appropriaic safciy cquipncni is providcd io all cnployccs, coniraciors and visiiors io our opcraiional
faciliiics. Fcgular ncdical cIccl ups and iraining prograns for our cnployccs and connuniiy arc conducicd
ai various opcraiional lcvcls. Our opcraiional faciliiics arc rcgularly audiicd io cnsurc conpliancc for arcas in
wIicI iIcy opcraic, as wcll as for conpliancc wiiI safciy nanagcncni sysicn. In addiiion, iIcrc arc rcgular
rcporis io nanagcncni on our IcaliI and safciy pcrfornancc.

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Wc Iavc inplcncnicd inicgraicd lusincss nanagcncni porials for planning and nanagcncni of opcraiions
ai our various nanufaciuring planis, including cusioncr carc, iccInical, MIS and vcndor scrviccs porial io
noniior criiical plani & nacIincry, produciion, vcndor accounis and siocl of naicrial supplicd ly iIcn,
financc, salcs, siorcs, purcIasc, invcniory, nanufaciuring, warcIousc opcraiions and payroll. A vasi
infrasiruciurc Ias lccn luili, io acIicvc iIc siaius of a rcsponsivc supplicr, in icrns of nciworl and
nciworling cquipncni for WAN and LANs, Iardwarc and sofiwarc and io providc suppori io iIc diffcrcni
lcvcls of nanagcncni.


,QWHOOHFWXDO PURSHUW\

Our Conpany Ias Paicnis FigIis for iIc nanufaciurc of Carlon Dlacl ly an inprovcd furnacc proccss and
an inprovcd HigI Volunc HigI Tcnpcraiurc (HVHTi Fcacior for carrying oui said nciIod" and iIc Paicni
FigIis is valid upio 25
iI
Scpicnlcr, 2018. Our Conpany Ias filcd an applicaiion in conncciion wiiI iIc
rcgisiraiion of our Tradcnarl Logo Dancing ElcpIani" in iIc nanc of PIillips Carlon Dlacl Liniicd, our
Conpany.
HXPDQ RHVRXUFH
Wc lclicvc iIai iIc cffcciivc and cfficicni nanagcncni of our Iunan capiial will lc iIc criiical diffcrcniiaior.
Wc lclicvc iIai a wcll-iraincd and saiisficd cnploycc lasc is lcy io our conpciiiivc advaniagc. Our cnployccs
coniriluic significanily io our lusincss opcraiions.


Wc placc a significani cnpIasis on iIc rccruiincni and rcicniion of our pcrsonncl and providc coniinuous
iraining for cnployccs io acIicvc IigI qualiiy slills. Wc Iavc also adopicd inicrnaiional lcsi praciiccs in
nanaging Iunan rcsourccs. Fcgular opcn Iousc and slip lcvcl ncciings providc a sourcc of iwo-way
connunicaiion wiiI our cnployccs. In addiiion, wclfarc ancniiics lilc a ncdical ccnicr, iranspori faciliiics
for cnployccs and iIcir cIildrcn and fanily gci-iogciIcrs cnsurc iIai our cnployccs siay IcaliIy in loiI
lody and spirii. Wc Iavc also cnlarlcd on a ncw ialcni dcvclopncni iniiiaiivc wIicI is aincd ai luilding a
lcadcrsIip pipclinc iIai can cnIancc iIc lcadcrs of iIc calilcr wc rcquirc io nanagc our growiI and
divcrsificaiion plans. TIcrc Iavc lccn no dispuics, rcsisiancc or oiIcr occurrcnccs in conncciion wiiI iIc
cnployccs of our conpany wIicI would Iavc a naicrial advcrsc cffcci of our opcraiions or profiialiliiy ovcr
iIc pasi iIrcc fiscal ycars.

TUDQVSRUWDWLRQ

Transporiaiion is an inporiani cosi clcncni in our opcraiions. In pariicular, sIipping cosis is a najor iicn as
largc quaniiiics of raw naicrial and finisIcd goods arc sIippcd across iIc glolc. In ordcr io nanagc iIis, wc
sirivc io sccurc long icrn coniracis wiiI sIipping agcncics, wIicI Iclps us assurc our scrviccs ai a prc-
dcicrnincd pricc. TIcsc prc-dcicrnincd priccs arc iypically valid fron 6 noniIs io a onc ycar pcriod
dcpcnding iIc upon icrns agrccd in cacI agrccncni and prcvailing narlci condiiions. TIis also Iclps us
dcicrninc wIai iIc cosi of sIipping will lc for cacI ordcr. Wc Iirc local vcndors for our on road
iransporiaiion scrviccs on a rcgular lasis.



Pursuani io iIc Pori Scrviccs Agrccncni iIc Mundra Pori agrccd io providc us wiiI various scrviccs and
faciliiics in conncciion wiiI prioriiy lcriIing of vcsscls carrying cargo and iIc sioragc of cargo in iIc poris
opcraicd ly Mundra Pori. Undcr iIc provisions of iIc Pori Scrviccs Agrccncni wc Iavc agrccd io cnsurc iIai
a spccificd quaniiiy of cargo in cacI financial ycar is Iandlcd ai iIc poris nanagcd ly Mundra Pori.

,QVXUDQFH CRYHUDJH
Wc Iavc insurancc covcragc wIicI wc considcr rcasonally sufficicni io covcr gcncral risls associaicd wiiI
our opcraiions. Wc nainiain a widc rangc of insurancc policics io covcr our asscis, risls and lialiliiics. Ai
prcscni, our opcraiing asscis, including our planis, nacIincrics and luildings, arc insurcd againsi a rangc of
risls, including a siandard firc and spccial pcrils policy for our carlon plani locaicd ai Daroda, KocIi,
Mundra and Durgapur. Apari fron iIc insurancc policics oliaincd and nainiaincd ly Fcliancc Ccncral
Insurancc Co. Lid. (FCICLi, wc also rcquirc coniraciors cnploycd ly FCICL io oliain and nainiain insurancc
policics io covcr risls in rclaiion io iIc opcraiional aciiviiics. FCICL also providc spccial insurancc policics for
our siocl and loilcr nacIincs uscd in iIc plani.


EQYLURQPHQW

Our Conpany lclicvcs iIai cnvironncni nanagcncni is synonynous wiiI good lusincss praciiccs and is
conniiicd io inprovc cnvironncni coniinuously. Wc sirivc io rcducc cnissions and discIargcs of wasic
wIicI arc lnown io Iavc a ncgaiivc cffcci on iIc cnvironncni. Wc Iavc pui in placc proccdurcs io cnsurc
iIai our opcraiions conply wiiI rclcvani cnvironncnial rcgulaiions. Wc Iavc a HcaliI, Safciy and
Environncni policy wIicI rcaffirns our conniincni io providc a safc worl placc and clcan cnvironncni io
our cnployccs and oiIcr sialcIoldcrs.
Dcing a pciro-cIcnical indusiry, considcrallc inporiancc Ias lccn givcn io prcscrving glolal rcsourccs. Ii is
a pionccr in uiilizing iIc wasic gas produccd during iIc proccss io gcncraic powcr, as wcll as lurning iIc
wasic gas in drycrs io rccovcr all scnsillc Icai of iIc gas iIcrcly saving sulsianiial cncrgy and rcducing iIc
polluiion lcvcl.

CUHGLW RDWLQJV
TIc Crcdii Analysis and FcscarcI Liniicd (CAFEi Ias assigncd iIc raiing of 'CAFE A+' Singlc A Plus| raiing
for iIc long1ncdiun icrn faciliiics of our Conpany. Our Conpany Ias also lccn granicd 'PF1+' (PF Onc
Plusi raiing io iIc sIori icrn faciliiics and also 'PF1+' (PF Onc Plusi io iIc sIori icrn dcli (including
Conncrcial Papcr, MIDOF linlcd dclcniurcs and MIDOF linlcd sIori icrn loani progrannc of our Conpany
for an anouni upio Fs. 50 crorcs.

CRUSRUDWH SRFLDO RHVSRQVLbLOLW\

As a rcsponsillc corporaic ciiizcn, wc Iavc sirivcd io pronoic social wcll-lcing ly coniriluiing iowards
IcaliIcarc, cducaiion, drinling waicr, infrasiruciurc and ccononic dcvclopncni. Wc Iavc csiallisIcd iIc
SMILE Foundaiion, a non govcrnncnial organisaiion (NCOi io carry oui various corporaic social
rcsponsililiiy aciiviiics. FuriIcr, SMILE Foundaiion also nainiains IcaliI ccnircs (including cyc-cIccl up ,
pulsc polio innunizaiion progrannc, scrccning icsi for Hcpaiiiis D & Ci, providc cducaiion and conpuicr
lnowlcdgc cspccially for iIc cIildrcn and Iousc-wivcs of iIc cnployccs, rural arca dcvclopncni and opcraics
an anlulancc scrvicc ioo. Wc Iavc iniiiaicd saplings planiaiions io all 4 najor locaiions. PCDL is a ncnlcr
of iIc Affirnaiivc Aciion Conniiicc- Easicrn Fcgion wiiI an oljcciivc of prcparing iIc laclward classcs io
iIc world of worl.





BO$RD OF D,RECTORS $ND KEY M$N$GER,$L PERSONNEL

CRPSRVLWLRQ

TIc conposiiion of iIc Doard of Dircciors is govcrncd ly iIc provisions of iIc Conpanics Aci and iIc
Ariiclcs of Associaiion and also ly iIc provisions of iIc lisiing agrccncnis wiiI iIc Siocl EcIangcs wIcrc
iIc Equiiy SIarcs of our Conpany arc lisicd. TIc Ariiclcs of Associaiion providc iIai iIc nunlcr of dircciors
sIall noi lc lcss iIan iIrcc or norc iIan 12 unlcss oiIcrwisc approvcd in a gcncral ncciing.

TIc Managing Dirccior of our Conpany arc rcsponsillc for iIc day-io-day nanagcncni of our Conpany
undcr iIc supcrvision, dircciion and conirol of iIc Doard of Dircciors. TIc icrn of officc of iIc Managing
Dirccior is iIrcc ycars. All iIc dircciors appoinicd ly iIc sIarcIoldcrs, including iIc CIairnan, wiiI iIc
cccpiion of iIc Managing Dirccior arc considcrcd for rciircncni or rc-clcciion ai cacI annual gcncral
ncciing of our Conpany. Dircciors wIo Iavc lccn on iIc Doard of Dircciors for iIc longcsi pcriod arc
considcrcd firsi for rciircncni.

TIc following iallc scis oui iIc conposiiion of iIc Doard of Dircciors as of iIc daic of iIis Placcncni
Docuncni.
N$ME $GE DES,GN$T,ON D,N RES,DENT,$L
$DDRESS
D,RECTOR
S,NCE
Sanjiv Cocnla 49 CIairnan 00074796 19 Dclvcdcrc Foad,
Kollaia-27
Ociolcr 30
iI
,
1986
Drij MoIan
KIaiian
82 Dirccior 00023771 10 Ouccns Parl,
Dallygungc,
Kollaia-19
April 28
iI
,
1977
CIiiiranjan
Paul
82 Dirccior 00009056 EC 43 Sccior-1,
Salilalc Ciiy,
Kollaia-64
Dcccnlcr 21
si
,
1989
Fan SulIraj
Tarncja

78 Dirccior 00009395 4, PasInina ,
33A Pcddar Foad,
Munlai-26
Ociolcr 4
iI
,
1993
Kanwar
Saiyalraia
Sanyal
77 Dirccior 00009497 86 Dallygungc Placc,
Aparincni No. 33,
4
iI
floor, Kollaia-19
Fclruary 23
rd
,
1995
Paras Kunar
CIowdIary
58 Dirccior 00076807 206-D, Sanudra
MaIal, Worli,
Munlai-18
Dcccnlcr 24
iI
,
1999
On ParlasI
MalIoira
78 Dirccior 00009086 34, Kusun
Aparincnis,
11 Curusaday Foad,
Kollaia-19
Dcccnlcr 21
si
,
1989
AsIol Coyal 59 Managing
Dirccior
00035392 41-Landnarl, 175-
Caricr Foad, Dandra
(Wi, Munlai-50
Ociolcr 23
rd
,
2006




BULHI BLRJUDSKLHV RI WKH DLUHFWRUV

MU. SDQjLY GRHQkD, CIairnan of PIillips Carlon Dlacl Liniicd (PCDLi, is Vicc CIairnan of FPC
Enicrpriscs. Dorn in 1961, Mr. Cocnla is a Craduaic fron Si. Xavicr's Collcgc, Univcrsiiy of Calcuiia. A
forncr Prcsidcni of CII, Mr. Cocnla is also iIc inncdiaic pasi Prcsidcni, Doard of Covcrnors, Indian
Insiiiuic of TccInology (IITi, KIaragpur. Currcnily, Mr. Cocnla is Prcsidcni of All India Managcncni
Associaiion (AIMAi. Hc is also iIc Honorary Consul of Canada in Kollaia.

MU. BULj MRKDQ KKDLWDQ, is iIc Dirccior of our Conpany. Hc Iolds a lacIclors' dcgrcc in Conncrcc fron
Calcuiia Univcrsiiy. Hc is a rcnowncd Indusirialisi Iaving inicrcsi in Tca, Daiicrics and Enginccring. Hc Ias
grcai coniriluiions io iIc Tca Indusiry wiiI wIicI Ic Ias lccn associaicd for ovcr fivc dccadcs. Hc is a
Dirccior of nunlcr of rcnowncd Conpanics Iaving divcrsificd lusincss inicrcsis.

MU. C R PDXO, is iIc Dirccior of our Conpany. Hc did Iis Masicrs in Scicncc and FIEE. Hc is a noicd
corporaic advisor of FPC Croup, onc of iIc India's iop indusirial Iouscs and E Managing Dirccior of
Calcuiia Elcciric Supply Corporaiion Iaving inicrcsi in Elccirical and TIcrnal Powcr. Hc was also associaicd
wiiI iIc Covi. of India, Environncni Appraisal Conniiicc for TIcrnal Powcr Projccis as a Mcnlcr.

DU. RDP S TDUQHjD, is iIc Dirccior of our Conpany. Hc Iolds a lacIclors' (Hons.i dcgrcc in Aris fron
Univcrsiiy of DclIi. Hc did Iis Masicr`s in Aris fron DclIi and Virginia. Hc did Iis P.I.D.in Aris fron Corncll
Univcrsiiy. Hc was iIc. Managing Dirccior of Dcncii, Colcnan & Conpany Liniicd iill May, 1991 lui
coniinucs io lc on iIc Doard. Hc is prcscnily iIc CIairnan of iIc Jollyloard Liniicd, Nissin ADC Logisiics
Pvi. Lid., MoIanadcvi Tarncja Mcnorial Trusi, TIc Filnfarc Old Ariisics Dcncvolcni Fund, Pan Asian
Managcncni & Fural FcscarcI Organisaiion and TIc EFI Social & lalour FcscarcI Foundaiion.

MU. K.S.B SDQ\DO, is iIc Dirccior of our Conpany. Hc did Iis Masicrs in Aris, CDIM, FIP fron LONDON. Hc
was iIc CIairnan and Managing Dirccior of Andrcw Yulc & Conpany Liniicd. Hc was also iIc SIcriff of
Calcuiia. Hc is prcscnily associaicd wiiI various Conpanics as indcpcndcni profcssional Dirccior and is a
Mcnlcr of Covcrning Dody of Hclp Agc India.

MU. PDUDV KXPDU CKRZGKDU\, is iIc Dirccior of our Conpany. Hc Iolds a lacIclors' dcgrcc in Scicncc
(Honours in PIysicsi fron a rcpuicd Univcrsiiy. Hc is also associaicd wiiI iIc Tyrc Croup in iIc FPC Croup
of Indusirics as iIc Prcsidcni and CIicf Eccuiivc Officcr. Hc was also iIc Prcsidcni and WIolciinc Dirccior
of Apollo Tyrcs Lid. Hc is Iolding iIc posi of Managing Dirccior in Ccai Liniicd.

OP PDUkDVK MDOKRWUD, is iIc Dirccior of our Conpany. Hc Iolds a lacIclors' dcgrcc in Scicncc (cIcnisiryi,
Engg., M.I.E., M.Insi. D., F.I.I.CI.E. Hc is associaicd wiiI iIc FPC Croup sincc 1962. Hc was iIc WIolciinc
Dirccior of our Conpany. Undcr Iis allc and valucd supcrvision, our Conpany undcriool iIc nodcrnizaiion
of iis plani ai Durgapur.

MU. $VKRk GR\DO, agcd 59 ycars, is iIc Managing Dirccior of our Conpany. Hc Iolds a lacIclors' dcgrcc in
TccInology fron IIT KIaragpur. Hc did Iis PCDDM (Posi Craduaic Diplona Coursc Dusincss Managcncnii
fron IIM, Kollaia. Hc Ias also undcrialcn an cccuiivc dcvclopncni progran fron London Dusincss ScIool.
Hc Ias ovcr 35 ycars of cpcricncc in iIc indusiry. Hc Ias lccn associaicd wiiI nany indusirics in India
and alroad for norc iIan a dccadc and lrings wiiI Iin ricI inicrnaiional cpcricncc in iIc adninisiraiion
of indusirial cnicrpriscs. viz. consuncr clccironics and durallc, iyrc, planiaiion, iciilc and EPC coniraciing.
Hc Ias also prcscnicd nany casc siudics on IIM`s.

BORROW,NG POWERS OF BO$RD OF D,RECTORS
Pursuani io iIc provisions of Scciion 293(1i (di of iIc Conpanics Aci, 1956, iIc currcni lorrowing powcrs of
iIc Doard of Dircciors of PHILLIPS CAFDON DLACK LIMITED, as approvcd ly iIc sIarcIoldcrs of our
Conpany is Fs. 700crorcs.




CRPSHQVDWLRQ RI DLUHFWRUV


MDQDJLQJ DLUHFWRU

Managing Dirccior of our Conpany, Mr. AsIol Coyal, is cniiilcd io iIc following rcnuncraiion, lcncfiis
and pcrquisiics wIicI Ias lccn duly approvcd ly iIc Doard of Dircciors and iIc Fcnuncraiion Conniiicc
of iIc Doard in iIcir ncciings Icld on 24
iI
July, 2009.


Dasic Salary Fs. 3,00,0001- pcr noniI
Managcncni Allowancc Fs. 3,00,0001- pcr noniI
Cusioniscd Allowancc Pool Fs. 92,06,0001-pcr annun
Pcrquisiics (ii Lcavc Travcl Allowancc for sclf and fanily oncc in a ycar as
pcr Fulcs of our Conpany
(iii Mcdical insurancc, pcrsonal accidcni insurancc and clul
fccs
(iiii Provision for usc of car for pcrsonal usc will lc lillcd io
iIc Managing Dirccior
(ivi Provision for iclcpIonc ai rcsidcncc - pcrsonal long
disiancc calls will lc lillcd io iIc Managing Dirccior
OiIcr lcncfiis (ii Our Conpany will nalc suiiallc coniriluiion iowards
Providcni fund, Supcrannuaiion fund and Annuiiy fund arc
ccnpi fron Inconc Ta Aci.
(iii Craiuiiy will lc payallc as pcr Fulcs of our Conpany
(iiii Lcavc as pcr Fulcs of our Conpany including
cncasIncni of unavailcd lcavc ai iIc cnd of iIc icnurc
(ivi any oiIcr allowancc1pcrquisiics1lcncfiis allowcd ly iIc
Doard of Dircciors wiiIin iIc applicallc liniis.
(ivi In iIc cvcni of alscncc or inadcquacy of profiis, Mr.
Coyal will lc cniiilcd io draw iIc Mininun Fcnuncraiion.
Pcrfornancc lonus1inccniivc As pcr iIc rcconncndaiion of iIc Doard Of Dircciors














TIc Fcnuncraiion Conniiicc dcicrnincs and rcconncnds io iIc Doard, iIc conpcnsaiion of iIc Managing
Dirccior. All non-cccuiivc dircciors arc paid siiiing fccs for aiicnding iIc ncciings of iIc Doard and iis
Conniiiccs.
TIc iallc lclow scis foriI iIc dciails of iIc rcnuncraiion paid io iIc Managing Dirccior and siiiing fccs paid
io iIc non-cccuiivc Dircciors during iIc ycar cndcd 311312009.
(Fs. In LalIsi
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Mr. AsIol Coyal Managing
Dirccior
152.55 9.97 4.15 - 166.67
Mr. Sanjiv Cocnla Non-
Eccuiivc
CIairnan
- - - 0.80 0.80
Mr. D. M. KIaiian Non-
Eccuiivc
Indcpcndcni
Dirccior
- - - 0.40 0.40
Mr. C. F. Paul Non-
Eccuiivc
Indcpcndcni
Dirccior
- - - 1.40 1.40
Dr. Fan S. Tarncja Non-
Eccuiivc
Indcpcndcni
Dirccior
- - - 0.60 0.60
Mr. K. S. D. Sanyal Non-
Eccuiivc
Indcpcndcni
Dirccior
- - - 1.10 1.10
Mr. Paras K.
CIowdIary
Non-
Eccuiivc
Dirccior
- - - - -
Mr. O. P. MalIoira Non-
Eccuiivc
Indcpcndcni
Dirccior
- - - 1.25 1.25




CRUSRUDWH GRYHUQDQFH RHSRUW

Our Conpany lclicvcs iIai ii is in conpliancc wiiI iIc rcquircncnis of applicallc corporaic govcrnancc
rcgulaiions, including iIc lisiing agrccncni lciwccn our Conpany and iIc Siocl EcIangcs (iIc LLVWLQJ
$JUHHPHQW"i in rcspcci of iIc consiiiuiion of iIc Doard of Dircciors and iIc Conniiiccs of iIc Doard of
Dircciors. TIc corporaic govcrnancc francworl is lascd on an cffcciivc indcpcndcni Doard of Dircciors,
scparaiion of iIc supcrvisory rolc of iIc Doard of Dircciors fron iIc cccuiivc nanagcncni ican and
consiiiuiion of iIc conniiiccs of iIc Doard of Dircciors, as rcquircd undcr applicallc law. As a lisicd
conpany wc arc in conpliancc wiiI iIc applicallc provisions of iIc Lisiing Agrccncni pcriaining io
corporaic govcrnancc, including iIc appoinincni of indcpcndcni dircciors and consiiiuiion of Conniiiccs.
TIc Doard of Dircciors funciions ciiIcr as a full Doard or iIrougI various conniiiccs consiiiuicd io ovcrscc
spccific opcraiional arcas. Our Conpany's nanagcncni providcs iIc Doard of Dircciors wiiI dciailcd rcporis
on a pcriodic lasis.

TIcrc arc 3 Doard lcvcl conniiiccs of our Conpany , wIicI Iavc lccn consiiiuicd and funciion in
accordancc wiiI iIc rclcvani provisions of iIc Conpanics Aci, iIc Lisiing Agrccncni. TIcsc arc (ii Audii
Conniiicc, (iii SIarcIoldcrs'1 Invcsiors'Cricvancc Conniiicc and (iiii Fcnuncraiion Conniiicc. A lricf noic
on cacI Conniiicc, iis scopc and conposiiion is givcn lclow.


(L) $UD,T COMM,TTEE
TIc conniiicc consisis of 5 dircciors oui of wIicI 4 arc Non- Eccuiivc Indcpcndcni Dircciors and 1 is Non-
Eccuiivc Dirccior

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WKH CRPPLWWHH
Mr. K. S. D. Sanyal Non - Eccuiivc & Indcpcndcni CIairnan
Mr. Paras K.CIowdIary Non -Eccuiivc Mcnlcr
Mr. C. F. Paul Non Eccuiivc & Indcpcndcni Mcnlcr
Mr. O. P. MalIoira Non Eccuiivc & Indcpcndcni Mcnlcr
Dr. Fan SulIraj Tarncja

Non Eccuiivc & Indcpcndcni Mcnlcr


Br1e] 1erms o] re]erenoe

i. Ovcrsccing our Conpany's financial rcporiing proccss and disclosurc of financial infornaiion io
cnsurc iIai iIc financial siaicncnis arc corrcci, sufficicni and crcdillc.
ii. Fcvicw of iIc quaricrly, Ialf-ycarly and annual financial siaicncnis lcforc sulnission io iIc Doard
iii. Fcvicwing wiiI iIc nanagcncni, cicrnal and inicrnal audiiors, iIc adcquacy of inicrnal conirol
sysicns
iv. Fcvicwing iIc adcquacy of inicrnal audii funciion
v. Fcvicwing our conpany's financial and risl nanagcncni policics.
vi. Discussing wiiI inicrnal and cicrnal audiiors any significani finding and follow-up on sucI issucs
vii. Fcvicw of lcy accouniing naiicrs and dcvclopncnis and
viii. OiIcr naiicrs as dirccicd ly iIc Doard

(LL) RHPXQHUDWLRQ CRPPLWWHH

TIc Fcnuncraiion Conniiicc Ias lccn consiiiuicd io rcvicw and rcconncnd io iIc Doard of Dircciors iIc
rcnuncraiion payallc io iIc Managing Dirccior. TIc Fcnuncraiion Conniiicc conpriscs of 3 Dircciors, all of
wIon arc Non - Eccuiivc Indcpcndcni Dircciors, nancly, Mr. K.S.D.Sanyal, Mr. C. F. Paul and Mr. O. P.
MalIoira.



TIc Non-Eccuiivc Dircciors do noi draw any rcnuncraiion fron our Conpany cccpi iIc siiiing fccs for
Doard and Conniiicc ncciings.


NDPH RI DLUHFWRU NDWXUH RI DLUHFWRUVKLS DHVLJQDWLRQ
Mr. K. S. D. Sanyal Non-Eccuiivc &
Indcpcndcni
CIairnan
Mr. C. F. Paul Non-Eccuiivc &
Indcpcndcni
Mcnlcr
Mr. O. P. MalIoira Non-Eccuiivc &
Indcpcndcni
Mcnlcr


Br1e] 1erms o] re]erenoe
TIc Conniiicc cvaluaics, rcconncnds, and approvcs io iIc Doard, iIc rcnuncraiion of iIc Managing
Dirccior io lring aloui iIc oljcciiviiy in dcicrnining iIc rcnuncraiion paclagc wIilc siriling a lalancc
lciwccn iIc inicrcsi of our conpany and iIc sIarcIoldcrs. TIc Fcnuncraiion Conniiicc ialcs inio accouni
cpcricncc, qualificaiion and prcvailing indusiry praciiccs lcforc giving iis rcconncndaiion io iIc Doard. On
rcconncndaiion of iIc Fcnuncraiion Conniiicc, iIc Doard dccidcs rcnuncraiion io lc paid io Managing
Dirccior, suljcci io approval of sIarcIoldcrs in icrns of provisions of iIc Conpanics Aci, rcad wiiI ScIcdulc
XIII iIcrcof. TIc Conniiicc ains iowards rcwarding, on iIc lasis of pcrfornancc, rcvicwcd on a pcriodical
lasis.

(LLL) SKDUHKROGHUV'/ ,QYHVWRUV' GULHYDQFH CRPPLWWHH

As a ncasurc of good corporaic govcrnancc, io focus on sIarcIoldcrs' gricvanccs, io sircngiIcning Invcsiors
rclaiions and in pursuancc io iIc rcquircncnis of iIc lisiing agrccncni, iIc Invcsior Cricvancc Conniiicc is
rcconsiiiuicd ai rcgular inicrvals ai iIc ncciing of iIc Doard of Dircciors for iIc purposc of spccifically
looling inio naiicrs rclaiing io sIarcIoldcrs and Invcsiors gricvanccs sucI as non rcccipi of dcclarcd
dividcnds, non rcccipi of lalancc sIccis, cic. TIcrc arc no sucI conplainis rcccivcd fron iIc sIarcIoldcr for
iIc ycar cndcd MarcI 31, 2010. Our Conpany Ias also rcccivcd confirnaiions fron Naiional Siocl
EcIangc of India Liniicd and Donlay Siocl EcIangc Liniicd iIai no invcsior conplainis arc pcnding
againsi our Conpany as on MarcI 31, 2010. TIc conniiicc consisis iIc following dircciors as iis ncnlcrs.

NDPH RI WKH DLUHFWRU DHVLJQDWLRQ DHVLJQDWLRQ LQ
WKH CRPPLWWHH
Mr. C. F. Paul Non Eccuiivc & Indcpcndcni CIairnan
Mr. K. S. D. Sanyal Non - Eccuiivc & Indcpcndcni Mcnlcr


Br1e] 1erms o] re]erenoe

TIc Conniiicc rcvicws iIc siaius of Invcsiors' gricvanccs on a pcriodical lasis. All iIc conplainis and1or
gricvanccs as rcccivcd fron iIc Invcsiors arc pronpily rcspondcd io and saiisfaciorily rcplicd. TIc lusincss
usually iransacicd ly iIc Conniiicc is as follows.

i. Approval of sIarc iransfcrs and iransnissions
ii. Taling noic of iIc rc-naicrialisaiion of sIarcs
iii. Issuc of sIarc ccriificaics on rc-naicrialisaiion
iv. Taling aciions on rouiinc conplainis of sIarcIoldcrs
v. To do any allicd naiicr(si oui of and incidcnial io iIcsc funciions and sucI oiIcr acis assigncd ly iIc
Doard.




SKDUH TUDQVIHU CRPPLWWHH

TIc SIarc Transfcr Conniiicc consisis of 3 ncnlcrs, nancly, Mr. AsIol Coyal, Managing Dirccior, Mr.
Aliaf Jiwani, CIicf Financial Officcr, and Mr. KausIil MulIcrjcc, Conpany Sccrciary arc is scvcrally
auiIoriscd io approvc sIarc iransfcrs in pIysical nodc.


PROLF\ RQ DLVFORVXUHV DQG ,QWHUQDO PURFHGXUH IRU PUHYHQWLRQ RI ,QVLGHU TUDGLQJ
Pursuani io Fcgulaiion 12(1i of iIc SEDI (ProIiliiion of Insidcr Tradingi Fcgulaiions, 1992, our Conpany
Ias inplcncnicd a codc of inicrnal proccdurcs and conduci for iIc prcvcniion of insidcr irading io conply
wiiI sucI rcgulaiions.

D,SCLOSURES
D. DLVFORVXUHV RQ PDWHULDOO\ VLJQLILFDQW UHODWHG SDUW\ WUDQVDFWLRQV L. H. WUDQVDFWLRQV RI RXU CRPSDQ\
RI PDWHULDO QDWXUH, ZLWK LWV SURPRWHUV, WKH DLUHFWRUV RU WKH PDQDJHPHQW, WKHLU VXbVLGLDULHV RU
UHODWLYHV, HWF. WKDW PD\ KDYH SRWHQWLDO FRQIOLFW ZLWK WKH LQWHUHVWV RI RXU CRPSDQ\ DW ODUJH.

Nonc of iIc iransaciions wiiI any of iIc rclaicd pariics wcrc in conflici wiiI iIc inicrcsi of our Conpany
for iIc ycar cndcd 311312009.
b. DLVFORVXUH b\ SHQLRU MDQDJHPHQW LQ DFFRUGDQFH ZLWK CODXVH 49,V(F)(LL) RI WKH LLVWLQJ $JUHHPHQW:

TIc Scnior Managcncni of our Conpany Ias confirncd io iIc Doard of Dircciors iIai iIcy do noi
Iavc any pcrsonal inicrcsi rclaiing io naicrial, financial and conncrcial iransaciions wiiI our
Conpany iIai nay Iavc a poicniial conflici wiiI iIc inicrcsis of our Conpany ai largc.
F. DHWDLOV RI QRQ-FRPSOLDQFH b\ RXU CRPSDQ\, SHQDOWLHV, VWULFWXUHV LPSRVHG RQ RXU CRPSDQ\ b\
SWRFk ExFKDQJHV RU SHFXULWLHV DQG ExFKDQJH BRDUG RI ,QGLD RU DQ\ SWDWXWRU\ $XWKRULW\, RQ DQ\
PDWWHU UHODWHG WR WKH FDSLWDO PDUkHWV, GXULQJ WKH ODVW WKUHH \HDUV.

Our Conpany Ias conplicd wiiI various rulcs and rcgulaiions prcscrilcd ly iIc Siocl EcIangc,
Sccuriiics and EcIangc Doard of India or any oiIcr Siaiuiory AuiIoriiy rclaicd io iIc capiial narlcis
during lasi iIrcc ycars. No pcnaliy or siriciurcs Iavc lccn inposcd ly iIcn on our Conpany

G. WKLVWOH BORZHU PROLF\:

Our Conpany docs noi Iavc any WIisilc Dlowcr Policy as of now lui no pcrsonncl arc lcing dcnicd any
acccss io iIc Audii Conniiicc.
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UHqXLUHPHQWV

All nandaiory rcquircncnis Iavc lccn conplicd. TIc non-nandaiory rcquircncnis arc parily adopicd
and iIc rcsi will lc inplcncnicd ly our Conpany as and wIcn rcquircd and1or dccncd ncccssary ly
iIc Doard.
I. CHUWLILFDWH IURP WKH MDQDJLQJ DLUHFWRU DQG WKH HHDG RI FLQDQFH

Ccriificaic fron Mr. AsIol Coyal, Managing Dirccior and Mr. Aliaf Jiwani, CIicf Financial Officcr, in
icrns of Clausc 49 (Vi of iIc Lisiing Agrccncnis wiiI iIc Siocl EcIangcs for iIc financial ycar cndcd
31
si
MarcI 2009 was placcd lcforc iIc Doard of Dircciors of our Conpany in iis ncciing Icld on 28
iI

April, 2009.


,QWHUHVW RI DLUHFWRUV

All iIc Dircciors, including indcpcndcni Dircciors, nay lc dccncd io lc inicrcsicd io iIc cicni of fccs, if
any, payallc io iIcn for aiicnding ncciings of iIc Doard or a Conniiicc iIcrcof as wcll as io iIc cicni of
oiIcr rcnuncraiion and rcinlurscncni of cpcnscs payallc io iIcn.

TIc Dircciors, including indcpcndcni Dircciors, nay also lc rcgardcd as inicrcsicd in iIc Equiiy SIarcs, if
any, Icld ly iIcn and also io iIc cicni of any dividcnd payallc io iIcn and oiIcr disiriluiions in rcspcci
of iIc SIarcs.

TIc Dircciors, including indcpcndcni Dircciors, nay also lc rcgardcd as inicrcsicd in SIarcs Icld ly or iIai
nay lc sulscrilcd ly and alloiicd io iIc conpanics, firns and irusi, in wIicI iIcy arc inicrcsicd as
Dircciors, ncnlcrs, parincrs and irusiccs. TIc sIarcIolding of Dircciors is ncniioncd in scciion iiilcd
'SIarcIolding of Dircciors'.

All of iIc Dircciors nay lc dccncd io lc inicrcsicd in iIc coniracis, agrccncnis1 arrangcncnis cnicrcd inio
or io lc cnicrcd inio ly our Conpany wiiI any conpany in wIicI iIcy Iold dircciorsIips or any parincrsIip
firn in wIicI iIcy arc parincrs as dcclarcd in iIcir rcspcciivc capaciiy. Eccpi as oiIcrwisc siaicd in iIis
Placcncni Docuncni in No1es 1o Aoooun1s", our Conpany Ias noi cnicrcd inio any coniraci, agrccncnis,
arrangcncnis during iIc prcccding iwo ycars fron iIc daic iIis Placcncni Docuncni in wIicI iIc Dircciors
arc inicrcsicd dirccily or indirccily and no payncnis Iavc lccn nadc io iIcn in rcspcci of iIcsc coniracis,
agrccncnis, arrangcncnis wIicI arc proposcd io lc nadc wiiI iIcn.

Our Conpany's Dircciors Iavc noi ialcn any loan fron our Conpany

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Keg Monoger1o1 Personne1:

In addiiion io our Doard as sci foriI alovc, iIc following forn a pari of our scnior nanagcncni

SU.
NR.
NDmH DHVLJQDtLRQ QuDOLILcDtLRQ YHDUV RI
HxpHULHQcH

1 Aliaf Jiwani Funciion Hcad-
Financc
DE wiiI Masicrs in
Managcncni Siudics
20 Ycars
2 Monojii MulIcrjcc Funciion Hcad-
Marlciing
PCDDA fron IIM,
AIncdalad,
26 Ycars
3 Vinod Tancja Funciional Hcad-
TccInology &
Dcvclopncni
D.TECH fron IIT, Kanpur 31 Ycars
4 SalyasacIi DIaiiacIarya Funciion Hcad-
Hunan Fcsourcc
Managcncni
MDA fron IISWDM 17 Ycars
5 Uipal SaIa Funciional Hcad-
Inicrnaiional
Projccis
D.TECH fron IIT, DclIi 30 Ycars
6 CirisI SingI VP Opcraiions-
Palcj & Mundra
DacIclor fron DHU 30 Ycars
7 K. MuralidIaran Plani Hcad- KocIi DE(CIcnicali 17 Ycars
8 N. L. Lcc Plani Hcad-
Durgapur
CIcnical Enginccring
fron Colunlia
Univcrsiiy, USA and
MDA fron Housion
Dapiisi Univcrsiiy, USA.
27 Ycars
9 CancsI Narayanswani Funciional Hcad-
Maicrials and Fccd
Siocls
M.S. fron WrigIi Siaic
Univcrsiiy, Dayion, OH
M.Sc. fron Univcrsiiy of
Munlai
23 Ycars
10 D. CIaiicrjcc DCM-Inicrnal
Audii
D. Con(Hi, CA 32 Ycars

MEANS OF COMMUNICATION
TIc un-audiicd financial rcsulis on quaricrly lasis and liniicd rcvicw ly iIc audiiors in iIc prcscrilcd
fornai arc supposcd io lc ialcn on rccord ly iIc Doard of Dirccior ai iis ncciing wiiIin onc and iwo
noniIs rcspcciivcly of iIc closc of cvcry quaricr and iIc sanc arc io lc furnisIcd io all iIc siocl
EcIangcs wIcrc our Conpany's sIarcs arc lisicd. TIc rcsulis arc also rcquircd io lc pullisIcd wiiIin 48
Iours in iIc Ncwspapcrs. Our Conpany, in conpliancc of iIc rcquircncnis, Ias furnisIcd iIc sanc io
iIc Siocl EcIangcs wiiIin iIc prcscrilcd iinc. TIc rcsulis arc also pullisIcd in iIc Ncwspapcrs viz.
Dusincss Siandard all cdiiions and Aaj Kal in Dcngali (locali languagc. Our Conpany's wcl siic is
www.pclllid.con wIcrc iIc quaricrly 1 annual rcsulis and oiIcr siaiuiory & non-siaiuiory infornaiion
arc displaycd.



RHJuODtLRQ & PROLcy
Ou) Compunu s nuoucd n tIc p)oducton o{ cu)Ion IucI und ou) Compunu Ius to compu utI cc)tun uus
uIcI u)c uppcuIc to ts Iusncss uIcI Ius Iccn I)c{u dscusscd Ic)cn Icou. Houcuc), tIc )cguutons
sct out Icou u)c not cxIuustuc. TIc {ooung dscusson dctus tIc mpo)tunt uus und )cguutons, uIcI
gouc)n ou) Compunu`s Iusncss


A. BuVLQHVV RHODtHG LDZV

LHJLVODtLRQ UHODtLQJ tR PHtUROHum DQG NDtuUDO GDV:

TIc Minisiry of Pcirolcun and Naiural Cas is iIc principal rcgulaior of cploraiion and produciion of oil
and naiural gas in India and is rcsponsillc for rcgulaiing cploraiion, produciion, disiriluiion, narlciing,
inpori, cpori and pricing of pcirolcun rcsourccs, including crudc oil and naiural gas.

TIc prinary lcgislaiion dcaling wiiI pcirolcun is iIc Pcirolcun Aci, 1934. TIc aci dcals wiiI iIc inpori,
iranspori, sioragc, produciion, rcfining and llcnding of pcirolcun. TIc Pcirolcun Aci cnpowcrs iIc
Ccniral Covcrnncni io nalc rulcs for iIc inpori, iransporiaiion, sioragc, dclivcr and dispaicI of
pcirolcun, produciion, rcfining and llcnding of pcirolcun, wIicI arc dcal wiiI in dciail undcr iIc
Pcirolcun Fulcs, 2002. No pcrson is allowcd io dcal wiiI pcirolcun wiiIoui Iaving a valid liccnsc for iIc
sanc.

FuriIcr, iIc Minisiry of Pcirolcun and Naiural Cas Ias prcscrilcd Oil Indusiry Safciy Dirccioraic (OSDI"i
Siandards, wIicI arc iccInical safciy rcquircncnis approvcd ly a spccial council undcr iIc Minisiry of
Pcirolcun and Naiural Cas io cnsurc safciy in iIc indusiry. TIcsc safciy siandards includc proccdurcs for
Iandling Iazardous cIcnicals, inspcciion proccdurcs for various cquipncni, firc proicciion faciliiaics and
firc proofing nciIods, cncrgcncy prcparcdncss plans cic.

B. CRmmHUcLDO LDZV

Our Conpany Ias io conply wiiI various conncrcial laws, sonc of wIicI arc givcn lclow.

MuQLcLpDO LDZV:

TIc Municipal Laws of various siaics arc applicallc io our Conpany in so far as ccriificaic of cnlisincni
(Tradc Liccncci of nanc is conccrncd.

TKH SKRpV DQG EVtDbOLVKmHQtV ActV (S&E ActV"):

Our Conpany is govcrncd ly various SIops and EsiallisIncnis Acis as applicallc in iIc siaics wIcrc ii
Ias officcs. TIc S&E Acis rcgulaic iIc condiiions of worl and cnployncni in sIops and conncrcial
csiallisIncnis and gcncrally prcscrilc olligaiions in rcspcci of, ntc) uu, rcgisiraiion, opcning and
closing Iours, daily and wcclly worling Iours, Iolidays, lcavc, IcaliI and safciy ncasurcs and wagcs for
ovcriinc worl. TIc S&E Acis apply io local arcas as noiificd ly iIc govcrnncni of cacI siaic and
nandaics rcgisiraiion of sIops and csiallisIncnis. TIc S&E Acis proIilii iIc cnployncni of cIildrcn and
rcgulaic iIc cnployncni of young pcrsons and woncn in sIops and csiallisIncnis. FuriIcr, iIcrc arc
provisions dcaling wiiI payncni of wagcs io cnployccs and lcavc wiiI pay. TIcrc arc various rcgulaiions
iIai nccd io lc olscrvcd io cnsurc iIc IcaliI and safciy of iIc cnployccs. TIc S&E Acis providc for
pcnaliics for iIc coniravcniion of iis various provisions and cnIanccd pcnaliy in casc of prcvious
conviciion.



TKH EOHctULcLty Act, 2003:

TIc Elcciriciiy Aci, 2003 (Icrcinaficr rcfcrrcd io as iIc Act"i was cnacicd wiiI cffcci fron Junc 10, 2003
rcpcaling and rcplacing all iIc iIrcc Acis i.c., Indian Elcciriciiy Aci, 1910, Elcciriciiy (Supplyi Aci and
Elcciriciiy Fcgulaiory Connissions Aci, 1998. TIc Aci sccls io providc for dcnarcaiion of iIc rolcs of
gcncraiion, iransnission and disiriluiion io providc for individual accounialiliiy of cacI. Sonc of iIc
najor provisions of iIc Aci includc inicr alia iIc following.

1. dc-liccnscs gcncraiion, nalcs capiivc gcncraiion frccly pcrnissillc;
2. providcs opcn acccss for iransnission, disiriluiion and irading;
3. spccifics iccInical siandards, grid siandards and safciy rcquircncnis; and
4. iniroduccs powcr irading as a disiinci aciiviiy fron powcr gcncraiion, iransnission and
disiriluiion.

C. EmpORymHQt DQG LDbRuU UHODtHG UHJuODtLRQV

Our Conpany Ias io conply wiiI iIc lalour laws prcvailing in iIc couniry, wIicI arc rclcvani io iIc
cnployccs and also io coniraci lalours wIo arc cngagcd ly iIc coniraciors cnploycd ly our Conpany.

A lricf synopsis of iIc lalour laws iIai arc applicallc io our Conpany arc as follows:

TKH FDctRULHV Act, 194S

TIc Faciorics Aci, 1948 (FDctRULHV Act"i dcfincs a faciory io covcr any prcniscs wIicI cnploys or
cnploycd on any day in prcvious 12 noniIs icn (10i or norc worlcrs and in wIicI iIc nanufaciuring
proccss is carricd on wiiI iIc aid of powcr and any prcniscs wIcrc iIcrc arc ai lcasi iwcniy (20i worlcrs
cvcn iIougI iIcrc is no clcciriciiy aidcd nanufaciuring proccss lcing carricd on. TIc Faciorics Aci wIicI
is a social lcgislaiion providcs iIai an occupicr of a faciory i.c. iIc pcrson wIo Ias uliinaic conirol ovcr
iIc affairs of iIc faciory and in casc of a conpany, any of iIc dircciors, nusi cnsurc iIc IcaliI, safciy,
wclfarc, worling Iours, lcavc and oiIcr lcncfiis for worlcrs cnploycd in faciorics. Ii was cnacicd prinarily
wiiI iIc oljcci of proicciing worlcrs fron indusirial and occupaiional Iazards. Undcr iIis siaiuic, an
approval nusi lc granicd prior io iIc sciiing up of iIc faciory and a liccnsc nusi lc granicd posi iIc
sciiing up of iIc sanc, ly iIc CIicf Inspccior of Faciorics. In casc of coniravcniion of any provision of iIc
Faciorics Aci or rulcs francd iIcrc undcr, iIc occupicr and iIc nanagcr of a faciory nay lc punisIcd wiiI
iIc inprisonncni for a icrn of up io iwo (2i ycars or wiiI a finc of up io Fs. 100,000 or wiiI loiI, and in
casc of a coniravcniion coniinuing aficr conviciion, wiiI a finc of up io onc iIousand rupccs pcr day of iIc
coniravcniion.

TKH CRQtUDct LDbRuU (RHJuODtLRQ DQG AbROLtLRQ) Act, 19?0:

TIc Coniraci Lalour (Fcgulaiion and Aloliiioni Aci, 1970 applics io iIosc csiallisIncnis wIcrc iwcniy
(20i or norc worlncn arc cnploycd or wcrc cnploycd on any day of iIc prcccding iwclvc (12i noniIs as
coniraci lalour and io cvcry coniracior or sul coniracior wIo cnploys or wIo cnploycd iwcniy (20i or
norc worlncn on any day of iIc prcccding iwclvc (12i noniIs, providcd iIcy wcrc noi cnploycd in iIc
corc aciiviiics as noiificd. TIc lcgislaiion sccls io rcgulaic iIc worling condiiions of iIc coniraci lalour
and io providc for iis aloliiion in ccriain cascs. TIis siaiuic providcs iIai any cnploycr sccling io cnploy
coniraci lalour nusi rcgisicr Iis csiallisIncni io iIc appropriaic auiIoriiy, wIicI is iIc Joini Lalour
Connissioncr of iIai pariicular siaic.

EmpORyHH'V StDtH IQVuUDQcH Act, 194S

TIc Enployccs Siaic Insurancc Aci, 1948 is applicallc io all faciorics and io sucI csiallisIncnis as iIc
Ccniral Covcrnncni nay noiify, unlcss a spccific ccnpiion Ias lccn granicd. TIc cnploycrs in sucI
faciorics and csiallisIncnis arc rcquircd io pay coniriluiions io iIc Enployccs Siaic Insurancc
Corporaiion, in rcspcci of cacI cnploycc ai iIc raic prcscrilcd ly iIc Ccniral Covcrnncni. Conpanics


wIicI arc conirollcd ly iIc Covcrnncni arc ccnpi fron iIc aforcsaid rcquircncni if iIc cnployccs arc
rccciving lcncfiis wIicI arc sinilar or supcrior io iIc lcncfiis prcscrilcd undcr iIc Enployccs Siaic
Insurancc Aci, 1948.

EmpORyHH'V PURYLGHQt FuQGV DQG MLVcHOODQHRuV PURYLVLRQV Act, 19S2

Undcr iIc Enploycc's Providcni Funds and Misccllancous Provisions Aci, 1952, conpulsory providcni
fund, fanily pcnsion fund and dcposii linlcd insurancc is payallc io cnployccs in faciorics and oiIcr
csiallisIncnis for iIcir lcncfii. TIc lcgislaiion providcs iIai an csiallisIncni cnploying norc iIan
iwcniy (20i pcrsons, ciiIcr dirccily or indirccily, in any capaciiy wIaisocvcr, is ciiIcr rcquircd io consiiiuic
iis own providcni fund or sulscrilc io iIc siaiuiory cnploycc's providcni fund. TIc cnploycr of sucI
csiallisIncni is rcquircd io nalc a noniIly coniriluiion io iIc providcni fund cquivalcni io iIc anouni
of iIc cnploycc's coniriluiion io iIc providcni fund, suljcci io a nininun coniriluiion of 12% of iIc
lasic wagcs, dcarncss allowancc and rciaining allowancc, if any payallc io cacI of iIc cnployccs.

PDymHQt RI GUDtuLty Act, 19?2

Undcr iIc Payncni of Craiuiiy Aci, 1972 an cnploycc in a faciory is dccncd io lc in 'coniinuous scrvicc'
for a pcriod noiwiiIsianding iIai Iis scrvicc Ias lccn inicrrupicd during iIai pcriod ly siclncss, accidcni,
lcavc, alscncc wiiIoui lcavc, lay-off, sirilc, locl oui or ccssaiion of worl noi duc io iIc fauli of iIc
cnploycc, or iIc cnploycc Ias worlcd ai lcasi iwo Iundrcd and foriy (240i days in a pcriod of iwclvc (12i
noniIs or onc Iundrcd and iwcniy (120i days in a pcriod of si (6i noniIs inncdiaicly prcccding iIc daic
of rccloning. An cnploycc, wIo aficr Iaving conplcicd ai lcasi fivc (5i coniinuous ycars of scrvicc in an
csiallisIncni rcsigns, rciircs, or is disallcd duc io an accidcni or discasc, is cligillc io rcccivc graiuiiy. To
ncci iIis lialiliiy, cnploycrs of all csiallisIncnis io wIicI iIc lcgislaiion applics arc liallc io coniriluic
iowards graiuiiy.

TKH TUDGH UQLRQV Act, 1926

TIc Tradc Unions Aci, 1926 was cnacicd io providc for iIc rcgisiraiion of iradc unions and for dcfining iIc
law in rclaiion io iradc unions. TIis lcgislaiion scis oui iIc proccdurc for rcgisiraiion of iradc unions and
also providcs iIc rigIis and lialiliiics of rcgisicrcd iradc unions. TIc siaiuic also providcs innuniiy io
rcgisicrcd iradc unions fron civil suiis in ccriain cascs. TIis lcgislaiion is of grcai significancc for iIosc
organizaiions wIosc worlcrs Iavc organizcd and forncd rcgisicrcd iradc unions.

IQGuVtULDO DLVputHV Act, 194?

TIc Indusirial Dispuics Aci, 1947 providcs iIc nacIincry and proccdurc for iIc invcsiigaiion and
sciilcncni of indusirial dispuics and for providing ccriain safcguards io iIc worlcrs. TIc Indusirial
Dispuics Aci ains io inprovc iIc scrvicc condiiions of indusirial lalour. WIcn a dispuic cisis or is
apprcIcndcd, iIc appropriaic govcrnncni is cnpowcrcd io rcfcr io iIc dispuic io an auiIoriiy ncniioncd
undcr iIc Indusirial Dispuic Aci in ordcr io prcvcni iIc occurrcncc or coniinuancc of iIc dispuic.
Fcfcrcncc nay lc nadc io a lalour couri, irilunal or arliiraior, as iIc casc nay lc, io prcvcni a sirilc or
locl oui wIilc a procccding is pcnding. Widc powcrs Iavc lccn givcn io iIc lalour couris and irilunals
undcr iIc Indusirial Dispuics Aci wIilc adjudicaiing a dispuic io grani appropriaic rclicf sucI as
nodificaiion of coniraci of cnployncni or rcinsiaic worlncn wiiI ancillary rclicf.

TKH IQGLDQ BRLOHUV Act, 1923:

TIc Indian Doilcrs Aci, 1923 and iIc rulcs nadc iIcrcundcr arc ncani io rcgulaic and cnsurc propcr
dcsign, nanufaciurc, opcraiion and nainicnancc of loilcrs, in ordcr io prcvcni safciy Iazards. TIis
lcgislaiion rcquircs iIai any loilcr in usc, in India, nusi lc ccriificd or rcgisicrcd and iIai no loilcr nay
funciion wiiIoui iIc sanc.



MLQLmum WDJHV Act, 194S:

TIis is an Aci io rcgulaic iIc payncni of wagcs io ccriain classcs of cnploycd pcrsons. Siaic govcrnncnis
nay siipulaic iIc nininun wagcs applicallc io a pariicular indusiry. TIc nininun wagcs nay consisi of
a lasic raic of wagcs and a spccial allowancc; or a lasic raic of wagcs and iIc casI valuc of iIc
conccssions in rcspcci of supplics of csscniial connodiiics; or an all-inclusivc raic allowing for iIc lasic
raic, iIc cosi of living allowancc and iIc casI valuc of iIc conccssions, if any. Worlncn arc io lc paid for
ovcriinc ai ovcriinc raics siipulaicd ly iIc appropriaic govcrnncni. Coniravcniion of iIc provisions of
iIis lcgislaiion nay rcsuli in inprisonncni up io si noniIs or a finc up io Fs.500 or loiI.

PubOLc LLDbLOLty IQVuUDQcH Act, 1991
Undcr iIc Aci, cvcry owncr of a faciliiy is rcquircd io ialc oui, lcforc Ic siaris Iandling any Iazardous
sulsiancc, onc or norc insurancc policics providing for adcquaic covcragc in casc of any accidcnis wIicI
involvc dcaiI or injury io any pcrson (oiIcr iIan a worlnani or danagc io any propcriy duc io iIc
aforcncniioncd accidcni. TIc Aci spccifics iIc lind and cicni of covcragc iIc owncr of a faciliiy is
cpccicd io providc for.

WRUkmHQ'V CRmpHQVDtLRQ Act, 1923

TIc Worlnan's Conpcnsaiion Aci, 1923 providcs for rcncdics in iIc cvcni of pcrsonal injury susiaincd ly
a worlnan ly accidcni during Iis cnployncni. In sucI cascs, as pcr iIc Aci, Iis cnploycr would lc liallc
io pay Iin conpcnsaiion. Howcvcr, no conpcnsaiion is rcquircd io lc paid if iIc injury did noi disallc iIc
worlnan for iIrcc days. WIcrc dcaiI rcsulis fron iIc injury iIc worlnan is liallc io lc paid iIc IigIcr of
fifiy pcr ccni of iIc noniIly wagcs nuliiplicd ly iIc prcscrilcd rclcvani facior (wIicI lcars an invcrsc
raiio io iIc agc of iIc affccicd worlnani or Fupccs EigIiy TIousand. WIcrc pcrnancni ioial disallcncni
rcsulis fron injury, iIc worlnan is io lc paid iIc IigIcr of siiy pcr ccni of iIc noniIly wagcs nuliiplicd
ly iIc prcscrilcd rclcvani facior or Fupccs Ninciy TIousand.

TKH IQGuVtULDO EmpORymHQt (StDQGLQJ OUGHUV) Act, 1946 (tKH StDQGLQJ OUGHUV Act")

TIc Sianding Ordcrs Aci rcquircs cvcry indusiry in wIicI onc Iundrcd or norc worlncn arc cnploycd
and cvcry indusiry wIcrcin lcss iIan onc Iundrcd cnployccs arc cnploycd wIicI is noiificd ly iIc
govcrnncni io sulnii sianding ordcrs, coniaining iIc condiiions of cnployncni in iIc indusiry, io a
ccriifying officcr. SucI sianding ordcrs nusi includc provisions dcaling wiiI various naiicrs rclaiing io
cnployncni, sucI as aiicndancc and icrninaiion of cnployncni, sci oui in ScIcdulc I of iIc Sianding
Ordcrs Aci. Oncc sulniiicd, iIc sianding ordcrs sIall lc ccriificd ly iIc ccriifying officcr aficr Icaring
rcprcscniaiions fron iIc rcprcscniaiivcs of iIc worlncn or iradc union of iIc indusiry and iIc cnploycr.
TIc ccriificd sianding ordcrs nusi lc posicd in a pronincni placc in iIc csiallisIncni ly iIc cnploycr.
TIc Sianding Ordcrs Aci also lays down ccriain pcnaliics for coniravcning iIc provisions of iIc Sianding
Ordcrs Aci.

D. EQYLURQmHQt RHODtHG RHJuODtLRQV

As our Conpany is cngagcd in iIc nanufaciuring of carlon llacl, cnvironncni laws arc applicallc io iis
nanufaciuring uniis, wIicI would lroadly includc iIc following.

TKH EQYLURQmHQt (PURtHctLRQ) Act, 19S6

TIc Environncni (Proicciioni Aci, 1986 (iIc EPA"i is an unlrclla lcgislaiion in rcspcci of iIc various
cnvironncnial proicciion laws in India. TIc EPA vcsis iIc Covcrnncni of India wiiI iIc powcr io ialc any
ncasurc ii dccns ncccssary or cpcdicni for proicciing and inproving iIc qualiiy of iIc cnvironncni and
prcvcniing and conirolling cnvironncnial polluiion. TIis includcs rulcs for ntc) uu, laying down iIc
qualiiy of cnvironncni, siandards for cnission of discIargc of cnvironncni polluianis fron various
sourccs, inspcciion of any prcniscs, plani, cquipncni, nacIincry, caninaiion of nanufaciuring
proccsscs and naicrials lilcly io causc polluiion.



TKH WDtHU (PUHYHQtLRQ DQG CRQtURO RI PROOutLRQ) Act, 19?4

TIc Waicr ( Prcvcniion and Conirol of Polluiioni Aci, 1974 (WDtHU Act"i proIiliis iIc usc of any sircan or
wcll for disposal of polluiing naiicr, in violaiion of siandards sci down ly iIc Siaic Polluiion Conirol Doard
(SPCB"i. TIis siaiuic providcs iIai prior pcrnission fron iIc rclcvani SPCD is rcquircd for iIc sciiing up
of any indusiry, wIicI is lilcly io discIargc cfflucnis.

TIc funciions of iIc Ccniral Doard includc coordinaiion of aciiviiics of iIc Siaic Doards, collcciing daia
rclaiing io waicr polluiion and iIc ncasurcs for iIc prcvcniion and conirol of waicr polluiion and
prcscripiion of siandards for sircans or wclls. TIc Siaic Polluiion Conirol Doards arc rcsponsillc for iIc
planning for progranncs for prcvcniion and conirol of polluiion of sircans and wclls, collcciing and
disscninaiing infornaiion rclaiing io waicr polluiion and iis prcvcniion and conirol; inspcciion of scwagc
or iradc cfflucnis, worls and planis for iIcir ircaincni and io rcvicw iIc spccificaiion and daia rclaiing io
planis sci up for ircaincni and purificaiion of waicr; laying down or annulling iIc cfflucni siandards for
iradc cfflucnis io lc discIargcd. TIis lcgislaiion dclars any pcrson fron csiallisIing any indusiry,
opcraiion or proccss or any ircaincni and disposal sysicn, wIicI is lilcly io discIargc iradc cfflucni inio a
sircan, wcll or scwcr wiiIoui ialing prior conscni of iIc Siaic Polluiion Conirol Doard.

TKH ALU (PUHYHQtLRQ DQG CRQtURO RI PROOutLRQ) Act, 19S1

TIc Air (Prcvcniion and Conirol of Polluiioni Aci, 1981, ains for iIc prcvcniion, conirol and alaicncni of
air polluiion. Ii is nandaicd undcr iIis Aci iIai no pcrson can, wiiIoui iIc prcvious conscni of iIc Siaic
Doard, csiallisI or opcraic any indusirial plani in an air polluiion conirol arca.

TIis siaiuic sccls io prcvcni and alaic iIc lcvcl of air polluiion and granis ccriain powcrs io iIc SPCD io
cnsurc iIc sanc. Undcr iIc provisions of iIis lcgislaiion, cvcry faciliiy Ias io oliain a conscni ordcr fron
iIc rclcvani SPCD in ordcr io carry on iis indusirial opcraiions. TIc SPCD is rcquircd io grani conscni
wiiIin four noniIs of rcccipi of iIc applicaiion. TIc conscni nay coniain condiiions rclaiing io
spccificaiions of polluiion conirol cquipncnis io lc insiallcd.

Undcr iIc Air Aci, iIc Ccniral Polluiion Conirol Doard Ias powcrs, inicr alia, io spccify siandards for
qualiiy of air, wIilc iIc Siaic Polluiion Conirol Doards Iavc powcrs, inicr alia, io inspcci any conirol
cquipncni, indusirial plani or nanufaciuring proccss, io advisc iIc Siaic Covcrnncni wiiI rcspcci io iIc
suiialiliiy of any prcniscs or locaiion for carrying on any indusiry and io oliain infornaiion fron any
indusiry.


HDzDUGRuV WDVtHV (MDQDJHmHQt DQG HDQGOLQJ) RuOHV, 19S9:

TIc Hazardous Wasics Fulcs ain io rcgulaic iIc propcr collcciion, rcccpiion, ircaincni, sioragc and
disposal of Iazardous wasic ly inposing an olligaiion on cvcry occupicr and opcraior of a faciliiy
gcncraiing Iazardous wasic io disposc sucI wasic wiiIoui advcrsc cffcci on iIc cnvironncni, including
iIrougI iIc propcr collcciion, ircaincni, sioragc and disposal of sucI wasic. Evcry occupicr and opcraior
of a faciliiy gcncraiing Iazardous wasic nusi oliain an approval fron iIc Polluiion Conirol Doard. TIc
occupicr, iIc iransporicr and iIc opcraior arc liallc for danagcs causcd io iIc cnvironncni rcsuliing fron
iIc inpropcr Iandling and disposal of Iazardous wasic. TIc opcraior and iIc occupicr of a faciliiy arc
liallc for any finc iIai nay lc lcvicd ly iIc rcspcciivc Siaic Polluiion Conirol Doards. Pcnaliy for iIc
coniravcniion of iIc provisions of iIc Hazardous Wasic Fulcs includcs inprisonncni up io fivc ycars and
inposiiion of fincs as nay lc spccificd in iIc EPA or loiI.

MDQuIDctuUH, StRUDJH DQG ImpRUt RI HDzDUGRuV CKHmLcDO RuOHV, 19S9 (tKH RuOHV")

TIc Fulcs prcscrilc a spccific rcsponsililiiy on iIc occupicr of any faciliiy iIai dcals wiiI Iazardous
cIcnicals during any indusirial aciiviiy io idcniify poicniial accidcnis and Iazards, and io ialc adcquaic


sicps io prcvcni accidcnis involving sucI Iazardous cIcnicals and providc pcrsons worling on iIc faciliiy
wiiI adcquaic lnowlcdgc of safciy proccdurcs rcgarding iIc Iazardous cIcnicals. An on-siic and off-siic
cncrgcncy plan is io lc crcaicd ly iIc occupicr in casc of accidcnis or cncrgcncics. FuriIcr, iIc occupicr
is also rcquircd io prcparc a safciy rcpori for sulnission io iIc appropriaic auiIoriiy ai lcasi 90 days
lcforc conncncing any aciiviiy involving iIc Iazardous cIcnicals. In casc of najor accidcnis, iIc occupicr
is rcquircd io foriIwiiI inforn iIc appropriaic auiIoriiy of iIc dciails of sucI accidcni. TIc scIcdulcs io
iIc Fulcs providc inicr alia, an indicaiivc lisi of cIcnicals along wiiI iIc criicria rclaiing io ioiciiy and
flannaliliiy of iIc sanc.

KyRtR PURtRcRO DQG CDUbRQ CUHGLtV

TIc Kyoio Proiocol is a proiocol io iIc Inicrnaiional Francworl Convcniion on Clinaic CIangc wiiI iIc
oljcciivc of rcducing grccnIousc gascs (GHG"i iIai causc clinaic cIangc. TIc Kyoio Proiocol was agrccd
on Dcccnlcr 11, 1997 ai iIc iIird confcrcncc of iIc pariics io iIc ircaiy wIcn iIcy nci in Kyoio, and
cnicrcd inio forcc on Fclruary 16, 2005. India raiificd iIc Kyoio Proiocol on Augusi 22, 2006. TIc Kyoio
Proiocol dcfincs lcgally linding iargcis and iinciallcs for rcducing iIc CHC cnissions of indusirializcd
counirics iIai raiificd iIc Kyoio Proiocol. Covcrnncnis Iavc lccn scparaicd inio dcvclopcd naiions (wIo
Iavc acccpicd CHC cnission rcduciion olligaiionsi and dcvcloping naiions (wIo Iavc no CHC cnission
rcduciion olligaiionsi. TIc proiocol includcs flcillc nccIanisns' wIicI allow dcvclopcd naiions io ncci
iIcir CHC cnission liniiaiion ly purcIasing CHC cnission rcduciions fron clscwIcrc. TIcsc can lc
lougIi ciiIcr fron financial ccIangcs, fron projccis wIicI rcducc cnissions in dcvcloping naiions undcr
iIc Clcan Dcvclopncni MccIanisn (CDM"i, iIc Joini Inplcncniaiion (JI"i scIcnc or fron dcvclopcd
naiions wiiI cccss allowanccs. Ccriificd Enission Fcduciion and Enission Fcduciion Unii arc ccriificaics
gcncraicd fron cnission rcduciion projccis, undcr iIc CDM for projccis inplcncnicd in dcvcloping
counirics, and undcr JI for projccis inplcncnicd in dcvclopcd counirics, rcspcciivcly. TIcsc nccIanisns
arc iniroduccd wiiIin iIc Kyoio Proiocol.

E. FLVcDO RHJuODtLRQV

CHQtUDO ExcLVH

Ecisc duiy inposcs a lialiliiy on a nanufaciurcr io pay ccisc duiy on produciion or nanufaciurc of
goods in India. TIc Ccniral Ecisc Aci, 1944 is iIc principal lcgislaiion in iIis rcspcci, wIicI providcs for
iIc lcvy and collcciion of ccisc and also prcscrilcs proccdurcs for clcaranccs fron faciory oncc iIc goods
Iavc lccn nanufaciurcd cic. Addiiionally, iIc Ccniral Ecisc Tariff Aci, 1985 prcscrilcs iIc raics of ccisc
duiics for various goods.

VDOuH AGGHG TDx Act (VAT Act")

Valuc Addcd Ta (VAT"i is a sysicn of nulii-poini lcvy on cacI of iIc cniiiics in iIc supply cIain wiiI iIc
faciliiy of sci-off inpui ia wIcrcly ia is paid ai iIc siagc of purcIasc of goods ly a iradcr and on
purcIasc of raw naicrials ly a nanufaciurcr. Only iIc valuc addiiion in iIc Iands of cacI of iIc cniiiics
is suljcci io ia. VAT is lascd on iIc valuc addiiion of goods, and iIc rclaicd VAT lialiliiy of iIc dcalcr is
calculaicd ly dcduciing inpui ia crcdii for ia collccicd on iIc salcs during a pariicular pcriod. VAT, is
csscniially a consunpiion ia applicallc io all conncrcial aciiviiics involving salc of goods, and cacI
Siaic iIai Ias iniroduccd VAT Ias iis own VAT Aci, undcr wIicI, pcrsons liallc io pay VAT nusi rcgisicr
iIcnsclvcs and oliain a rcgisiraiion nunlcr.

CHQtUDO SDOHV TDx Act

TIc ia on salc of goods is govcrncd ly iIc provisions of iIc Ccniral Salcs Ta (CST"i Aci, or iIc siaic
lcgislaiions dcpcnding upon iIc novcncni of goods pursuani io sucI salc. If iIc goods novc inicr-siaic
pursuani io a salc arrangcncni, iIcn iIc iaaliliiy of sucI salc is dcicrnincd ly iIc CST Aci. On iIc
oiIcr Iand, wIcn iIc iaaliliiy of an arrangcncni of salc of goods wIicI docs noi conicnplaic novcncni


of goods ouisidc iIc siaic wIcrc iIc salc is ialing placc is dcicrnincd as pcr iIc local salcs ia1VAT
lcgislaiions in placc wiiIin iIc siaics

TKH IQcRmH TDx Act, 1961

TIc Inconc Ta Aci providcs iIai any conpany dcduciing ia nusi apply io iIc asscssing officcr for iIc
alloincni of a ia dcduciion accouni nunlcr. FuriIcrnorc, iIc lcgislaiion rcquircs cvcry ia paycr io
apply io iIc asscssing officcr for a Pcrnancni Accouni Nunlcr.

ImpRUtHU ExpRUtHU CRGH

Undcr iIc Indian Forcign Tradc Policy, 2004, no cpori or inpori can lc nadc ly a pcrson or conpany
wiiIoui an Inporicr Eporicr Codc nunlcr unlcss sucI pcrson1conpany is spccifically ccnpicd. An
applicaiion for an Inporicr Eporicr Codc nunlcr Ias io lc nadc io iIc officc of iIc Joini Dirccior
Ccncral of Forcign Tradc, Minisiry of Conncrcc. An Inporicr Eporicr Codc nunlcr alloiicd io an
applicani is valid for all iis lrancIcs1divisions1 uniis1faciorics.














ISSUE PROCEDURE

Hcou s u summu)u ntcndcd to p)cscnt u gcnc)u outnc o{ tIc p)occdu)c )cutng to tIc Iddng, puumcnt,
uocuton und uotmcnt o{ tIc Equtu SIu)cs. TIc p)occdu)c {ooucd n tIc Issuc muu d{{c) {)om tIc onc
mcntoncd Icou und p)ospcctuc Inucsto)s u)c ussumcd to Iuuc upp)uscd tIcmscucs o{ tIc sumc {)om ou)
Compunu o) tIc HooI Hunnng Lcud Munugc). P)ospcctuc Inucsto)s u)c uduscd to n{o)m tIcmscucs o{ unu
)cst)ctons o) mtutons tIut muu Ic uppcuIc to tIcm. Fo) {u)tIc) dctus, scc tIc scctons Dst)Iuton o{
SIu)cs, Dst)Iuton und Soctuton Hcst)ctons und T)uns{c) Hcst)ctons

QuDOLILHG IQVtLtutLRQV PODcHmHQtV

TIc Issuc is lcing nadc in rcliancc upon CIapicr VIII of iIc SEDI Fcgulaiions nccIanisn of Oualificd
Insiiiuiions Placcncni (QIP"i, pursuani io wIicI an Indian lisicd conpany nay issuc and alloi Equiiy
SIarcs1Fully Convcriillc Dclcniurcs1Parily Convcriillc Dclcniurcs or any oiIcr sccuriiy (ccluding
warranisi wIicI arc convcriillc inio or ccIangcallc wiiI cquiiy sIarcs ai a laicr daic in a OIP io OIDs as
dcfincd in Fcgulaiion 2(1i(zdi of iIc SEDI Fcgulaiions, providcd iIai.

x A spccial rcsoluiion approving iIc OIP Ias lccn passcd ly iis sIarcIoldcrs

x cquiiy sIarcs of iIc sanc class of sucI conpany arc lisicd on a siocl ccIangc in India iIai Ias
naiion-widc irading icrninals for a pcriod of ai lcasi onc ycar prior io iIc daic of issuancc of noiicc
io iis sIarcIoldcrs io pass iIc spccial rcsoluiion; and

x sucI conpany conplics wiiI iIc nininun pullic sIarcIolding rcquircncnis sci oui in iIc lisiing
agrccncni wiiI iIc Siocl EcIangcs.

Our Conpany Ias rcccivcd in-principlc approvals fron DSE on April 19iI 2010 and fron NSE and CSE on April
20iI 2010 rcspcciivcly undcr Clausc 24(ai of iIc Lisiing Agrccncni for iIc lisiing of iIc Equiiy SIarcs on iIc
Siocl EcIangcs. Wc Iavc also filcd a copy of iIc Prclininary Placcncni Docuncni and iIc Placcncni
Docuncni wiiI iIc Siocl EcIangcs.

TIcrc is a nininun pricing rcquircncni undcr iIc SEDI Fcgulaiions. TIc Offcr pricc of iIc Equiiy SIarcs
sIall noi lc lcss iIan iIc avcragc of iIc wcclly IigI and low of iIc closing priccs of iIc rclaicd cquiiy
sIarcs of sucI issucr quoicd on iIc siocl ccIangc during iIc iwo wccls prcccding iIc rclcvani daic.

TIc 'rclcvani daic' rcfcrrcd io alovc ncans iIc daic of iIc ncciing in wIicI iIc loard of our Conpany or
iIc conniiicc of dircciors duly auiIoriscd ly iIc loard of our Conpany dccidcs io opcn iIc proposcd
Issuc; and iIc 'siocl ccIangc' ncans any of iIc rccogniscd siocl ccIangcs in wIicI iIc cquiiy sIarcs of
iIc Issucr of iIc sanc class arc lisicd and on wIicI iIc IigIcsi irading volunc in sucI sIarcs Ias lccn
rccordcd during iIc iwo wccls inncdiaicly prcccding iIc rclcvani daic.

Ai lcasi 10% of iIc cquiiy sIarcs issucd io OIDs nusi lc alloiicd io nuiual funds, providcd iIai, if iIis
poriion or any pari iIcrcof io lc alloiicd io nuiual funds rcnains unsulscrilcd, ii nay lc alloiicd io
oiIcr OIDs.

OIDs arc noi allowcd io wiiIdraw iIcir Dids aficr iIc closurc of iIc Issuc.

Equiiy sIarcs nusi lc alloiicd wiiIin iwclvc noniIs fron iIc daic of iIc sIarcIoldcrs rcsoluiion
approving iIc OIP. TIc cquiiy sIarcs issucd pursuani io iIc OIP nusi lc issucd on iIc lasis of a
placcncni docuncni iIai sIall coniain all naicrial infornaiion including iIc infornaiion spccificd in
ScIcdulc XVIII of iIc SEDI Fcgulaiions. TIc Prclininary Placcncni Docuncni Placcncni Docuncni is a
privaic docuncni providcd io sclcci Invcsiors (noi norc iIan 49i iIrougI scrially nunlcrcd copics and is
rcquircd io lc placcd on iIc wclsiic of iIc conccrncd siocl ccIangc and of iIc issucr wiiI a disclaincr
io iIc cffcci iIai ii is in conncciion wiiI an issuc io OIDs and no offcr is lcing nadc io iIc pullic or io


any oiIcr caicgory of Invcsiors. A copy of iIis Placcncni Docuncni is rcquircd io lc filcd wiiI iIc SEDI
for rccord purposcs wiiIin 30 days of iIc alloincni of iIc sccuriiics.

Pursuani io iIc provisions of Scciion 67 of iIc Conpanics Aci, for a iransaciion iIai is noi a pullic
offcring, an inviiaiion or offcr can noi lc nadc io norc iIan 49 pcrsons.

TIc nininun nunlcr of alloiiccs for cacI OIP sIall noi lc lcss iIan.

x iwo, wIcrc iIc issuc sizc is lcss iIan or cqual io Fs.2.5 lillion; and
x fivc, wIcrc iIc issuc sizc is grcaicr iIan Fs.2.5 lillion.

No singlc alloiicc sIall lc alloiicd norc iIan 50% of iIc issuc sizc. OIDs iIai lclong io iIc sanc group or
iIai arc undcr connon conirol sIall lc dccncd io lc a singlc alloiicc. TIc aggrcgaic of iIc proposcd
qualificd insiiiuiional placcncni and all prcvious qualificd insiiiuiional placcncnis nadc in iIc sanc
financial ycar sIall noi ccccd fivc iincs iIc nci woriI of iIc issucr as pcr iIc audiicd lalancc sIcci of
iIc prcvious financial ycar. TIc issucr sIall furnisI a copy of iIis Placcncni Docuncni io cacI siocl
ccIangc on wIicI iis cquiiy sIarcs arc lisicd.

Sccuriiics1 Equiiy SIarcs alloiicd io a OID pursuani io a OIP sIall noi lc sold1 iransfcrrcd for a pcriod of
onc ycar fron iIc daic of alloincni, cccpi on a rccognizcd siocl ccIangc in India.

Our Conpany Ias rcccivcd in-principlc approvals fron DSE on April 19iI 2010 and fron NSE and CSE on April
20iI 2010 rcspcciivcly undcr Clausc 24(ai of iIc Lisiing Agrccncni for iIc lisiing of iIc Equiiy SIarcs on iIc
Siocl EcIangcs. Wc Iavc also filcd a copy of iIc Prclininary Placcncni Docuncni and iIc Placcncni
Docuncni wiiI iIc Siocl EcIangcs.

1ssue Prooedure
1. Our Conpany and iIc Dool Funning Lcad Managcr sIall circulaic iIc scrially nunlcrcd Prclininary
Placcncni Docuncni and iIc Placcncni Docuncni & iIc Did-cun Applicaiion Forn ciiIcr in clccironic
forn or pIysical forn io noi norc iIan 49 OIDs.
2. TIc DFLM sIall dclivcr io sucI OIDs Did Cun Applicaiion Forn. TIc lisi of OIDs io wIon iIc Did cun
Applicaiion Forn is io lc dclivcrcd sIall lc dcicrnincd ly iIc Dool Funning Lcad Managcr in consuliaiion
wiiI our Conpany. UQOHVV D VHULDOOy QumbHUHG PUHOLmLQDUy PODcHmHQt DRcumHQt DORQJ ZLtK tKH
AppOLcDtLRQ FRUm LV DGGUHVVHG tR D pDUtLcuODU QIB, QR LQYLtDtLRQ tR VubVcULbH VKDOO bH GHHmHG tR
KDYH bHHQ mDGH tR VucK QIB. Evcn if sucI docuncniaiion wcrc io conc inio iIc posscssion of any pcrson
oiIcr iIan iIc inicndcd rccipicni, no offcr or inviiaiion io offcr sIall lc dccncd io Iavc lccn nadc io sucI
pcrson
3. OIDs nay sulnii iIcir Did cun Applicaiion Forn including any rcvision iIcrcof, during iIc lidding
pcriod io iIc Dool Funning Lcad Managcr.
4. OIDs will lc rcquircd io indicaic iIc following in iIc Did Cun Applicaiion Forn.
ai Full Official nanc of iIc OID io wIon Equiiy SIarcs arc io lc Alloiicd;
li Nunlcr of Equiiy SIarcs applicd for;
ci Pricc ai wIicI iIcy arc agrccallc io sulscrilc for iIc Equiiy SIarcs, providcd iIai OIDs nay also
indicaic iIai iIcy arc agrccallc io sulnii Did cun Applicaiion Forn ai Cui-off Pricc (i.c. iIc Offcr
pricc of iIc Equiiy SIarcs wIicI sIall lc finalizcd ly our Conpany in consuliaiion wiiI iIc Dool
Funning Lcad Managcr ai or alovc iIc Floor Pricci; and


di TIc dciails of iIc dcposiiory accouni(si io wIicI iIc Equiiy SIarcs sIould lc crcdiicd.
NRtH: EDcK Vub-DccRuQt RI DQ FII, RtKHU tKDQ D Vub-DccRuQt ZKLcK LV D IRUHLJQ cRUpRUDtH RU IRUHLJQ
LQGLYLGuDO, ZLOO bH cRQVLGHUHG DV DQ LQGLYLGuDO QIB DQG VHpDUDtH BLG cum AppOLcDtLRQ FRUmV ZRuOG
bH UHquLUHG IURm HDcK VucK Vub-DccRuQt. FIIV RU Vub-DccRuQtV RI FIIV, DUH UHquLUHG tR LQGLcDtH tKH
SEBI FII/Vub-DccRuQt UHJLVtUDtLRQ QR. LQ tKH BLG cum AppOLcDtLRQ FRUm
5. Oncc a duly fillcd Did cun Applicaiion Forn is sulniiicd ly a OID, sucI Did cun Applicaiion Forn
consiiiuics an irrcvocallc offcr and cannoi lc wiiIdrawn aficr iIc Closing Daic. TIc Did nay lc rcviscd iill
Closing Daic, for wIicI iIc OID will Iavc io rcvisc iIc Did in a Fcvision Forn availallc wiiI DFLM.
Fcvision Forns rcccivcd aficr iIc closurc of iIc Issuc on Closing Daic ly giving iniinaiion io iIc Siocl
EcIangcs, sIall noi lc considcrcd as valid and iIc original Did will siand. Upon iIc rcccipi of duly
conplcicd Did cun Applicaiion Forn, iIc DFLM sIall issuc iIc CAN io iIc applicanis. TIc Closing Daic
sIall lc noiificd io iIc Siocl EcIangcs and iIc OIDs sIall lc dccncd io Iavc lccn givcn iniinaiion of
sucI daic.

6. Dascd on Did cun Applicaiion Forns rcccivcd fron iIc OIDs wIo Iavc rcccivcd scrially nunlcrcd
Prclininary Placcncni Docuncni, our Conpany sIall dccidc (ii iIc pricc ai wIicI iIc Equiiy SIarcs will
lc offcrcd (OIIHU pULcH"i, wIicI sIall lc ai or alovc iIc Floor Pricc and; (iii iIc nunlcr of Equiiy SIarcs
io lc issucd, in cacI casc, in consuliaiion wiiI iIc DFLM. Our Conpany sIall noiify iIc Siocl EcIangcs
of iIc Offcr Pricc. On dcicrninaiion of iIc Offcr Pricc, cacI OID io wIon an allocaiion sIall lc nadc sIall
lc scni Confirnaiion of Allocaiion Noic (CAN"i. TIc dispaicI of iIc CAN sIall lc dccncd a valid, linding
and irrcvocallc coniraci for iIc OIDs. EacI CAN sIall coniain dciails of iIc nunlcr of Equiiy SIarcs
Allocaicd io iIc OID, iIc payncni insiruciions, including dciails of iIc anouni payallc ly iIc OID for iIc
alloincni of Equiiy SIarcs in iis nanc, and iIc daic applicallc io iIc rcspcciivc OID on wIicI payncni of
iIc applicaiion nonics is rcquircd io lc nadc in rcspcci of iIc Equiiy SIarcs. TIc dccision of our
Conpany and iIc Dool Funning Lcad Managcr in iIis rcgard sIall lc ai iIcir solc and alsoluic discrciion.

7. TIc Issuc Closing Daic sIall lc noiificd io iIc Siocl EcIangcs and iIc OIDs sIall lc dccncd io Iavc
lccn givcn noiicc of sucI daic aficr iIc rcccipi of iIc Applicaiion Forn.
8 OIDs sIall nalc payncni of iIc cniirc applicaiion nonics io iIc dcsignaicd lanl accouni of our
Conpany ly iIc Pay-In-Daic as spccificd in iIc CAN scni io iIc rcspcciivc OIDs.
9. Upon rcccipi of iIc applicaiion nonics fron iIc OIDs, iIc Doard of Dircciors or a duly consiiiuicd
conniiicc of our Conpany will approvc Alloincni of iIc Equiiy SIarcs pursuani io a Doard rcsoluiion.
Our Conpany sIall noi alloi Equiiy SIarcs io norc iIan 49 OIDs io wIon an inviiaiion or offcr Ias lccn
nadc. Our Conpany will inforn iIc Siocl EcIangcs of iIc dciails of iIc Alloincni.


10. Aficr adopiing iIc Alloincni rcsoluiion and prior io crcdiiing iIc Equiiy SIarcs inio iIc Dcposiiory
Pariicipani Accounis of iIc OIDs, our Conpany sIall apply for lisiing approval of iIc DSE, NSE and CSE
for lisiing of iIc Equiiy SIarcs.

11. Aficr rcccipi of iIc lisiing approval of iIc DSE, NSE and CSE, our Conpany sIall crcdii iIc Equiiy
SIarcs inio iIc Dcposiiory Pariicipani accounis of iIc OIDs in accordancc wiiI iIc dciails sulniiicd ly
iIc OIDs in iIc Did cun Applicaiion Forn.

12. Our Conpany sIall iIcn apply for iIc final irading and lisiing pcrnissions fron iIc Siocl EcIangcs.

13. TIc Equiiy SIarcs iIai Iavc lccn alloiicd and crcdiicd io iIc Dcposiiory Pariicipani accounis of iIc
OIDs sIall lc cligillc for irading on iIc Siocl EcIangcs only upon iIc rcccipi of final irading and lisiing
pcrnissions fron iIc Siocl EcIangcs.




14. TIc Siocl EcIangcs sIall noiify iIc final irading and lisiing pcrnissions, wIicI arc ordinarily
availallc on iIcir wclsiics, and our Conpany sIall connunicaic iIc rcccipi of iIc final irading and
lisiing pcrnissions fron iIc Siocl EcIangcs io iIosc OIDs io wIon iIc Equiiy SIarcs Iavc lccn
alloiicd. Our Conpany and iIc Dool Funning Lcad Managcr sIall noi lc rcsponsillc for any dclay or
non-rcccipi of iIc connunicaiion of iIc final irading and lisiing pcrnissions fron iIc Siocl EcIangcs or
any loss arising fron sucI dclay or non rcccipi. OIDs arc adviscd io appraisc iIcnsclvcs of iIc siaius of
iIc rcccipi of iIc pcrnissions fron iIc Siocl EcIangcs or our Conpany.

QuDOLILHG IQVtLtutLRQDO BuyHUV

Only OIDs as dcfincd in Fcgulaiion 2(1i(zdi of iIc SEDI Fcgulaiions, and noi oiIcrwisc ccludcd pursuani
io Fcgulaiion 86 of CIapicr VIII of iIc SEDI Fcgulaiions, arc cligillc io invcsi.

(ii a nuiual fund, vcniurc capiial fund and forcign vcniurc capiial invcsior rcgisicrcd
wiiI iIc Doard;
(iii a forcign insiiiuiional invcsior and sul-accouni (oiIcr iIan a sul-accouni wIicI is
a forcign corporaic or forcign individuali, rcgisicrcd wiiI iIc Doard;
(iiii a pullic financial insiiiuiion as dcfincd in scciion 4A of iIc Conpanics Aci, 1956;
(ivi a scIcdulcd conncrcial lanl;
(vi a nuliilaicral and lilaicral dcvclopncni financial insiiiuiion;
(vii a siaic indusirial dcvclopncni corporaiion;
(viii an insurancc conpany rcgisicrcd wiiI iIc Insurancc Fcgulaiory and Dcvclopncni
AuiIoriiy;
(viiii a providcni fund wiiI nininun corpus of iwcniy fivc crorc rupccs;
(ii a pcnsion fund wiiI nininun corpus of iwcniy fivc crorc rupccs;
(i Naiional Invcsincni Fund sci up ly rcsoluiion no. F. No. 21312005-DDII daicd
Novcnlcr 23, 2005 of iIc Covcrnncni of India pullisIcd in iIc Cazciic of India;
(ii insurancc funds sci up and nanagcd ly arny, navy or air forcc of iIc Union of India;

POHDVH QRtH tKDt puUVuDQt tR DmHQGmHQtV tR tKH SEBI RHJuODtLRQV, D Vub-DccRuQt tKDt LV D IRUHLJQ
cRUpRUDtH RU IRUHLJQ LQGLYLGuDO LV QR ORQJHU LQcOuGHG uQGHU tKH GHILQLtLRQ RI D QIB.

Undcr Fcgulaiion 86 of CIapicr VIII of iIc SEDI Fcgulaiions, no alloincni sIall lc nadc, ciiIcr dirccily
or indirccily, io any OID wIo is a pronoicr or any pcrson rclaicd io iIc pronoicr(si of our Conpany.
For iIis purposc, any OID wIo Ias all or any of iIc following rigIis sIall lc dccncd io lc a pcrson rclaicd
io iIc pronoicrs.
x rigIis undcr a sIarcIoldcrs' agrccncni or voiing agrccncni cnicrcd inio wiiI pronoicrs of our
Conpany or
x pcrsons rclaicd io iIc pronoicrs of our Conpany;
x vcio rigIis; or
x iIc rigIi io appoini a nonincc dirccior on iIc Doard of our Conpany,
x unlcss a OID Ias acquircd any of iIcsc rigIis in iis capaciiy as a lcndcr io our Conpany and sucI
OID docs noi Iold any sIarcs in iIc Conpany.

I11s ore perm111ed 1o por11o1po1e 1roug 1e por1]o11o 1nues1men1 soeme. I11s ore perm111ed 1o
por11o1po1e 1n 1e 1ssue, sub]eo1 1o oomp11onoe u11 o11 opp11oob1e 1ous ond suo 1o1 1e
soreo1d1ng o] 1e I11 does no1 eoeed 1e speo1]1ed 11m11s os presor1bed under 1e opp11oob1e
1ous 1n 11s regord.

No singlc FII can Iold norc iIan 10% of iIc posi Issuc paid-up capiial of our Conpany. In rcspcci of an
FII invcsiing in our Equiiy SIarcs on lcIalf of iis sul accounis, iIc invcsincni on lcIalf of cacI sul
accouni sIall noi ccccd 10% of our Conpany's ioial issucd capiial or 5% of iIc ioial issucd capiial of our
Conpany in casc sucI sul accouni is a forcign corporaic or an individual.



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DRcumHQt LV ILOHG ZLtK tKH StRck ExcKDQJHV. QIBV DUH DGYLVHG tR mDkH tKHLU LQGHpHQGHQt
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DQy VLQJOH BLG IURm tKHm GRHV QRt HxcHHG tKH LQYHVtmHQt OLmLtV RU mDxLmum QumbHU RI EquLty
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PODcHmHQt DRcumHQt. FuUtKHU, QIBV DUH UHquLUHG tR VDtLVIy tKHmVHOYHV tKDt tKHLU BLGV ZRuOG QRt
HYHQtuDOOy UHVuOt LQ tULJJHULQJ D tHQGHU RIIHU uQGHU tKH TDkHRYHU CRGH.

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tR MutuDO FuQGV. II QR MutuDO FuQG LV DJUHHDbOH tR tDkH up tKH mLQLmum pRUtLRQ DV VpHcLILHG
DbRYH, VucK mLQLmum pRUtLRQ RU pDUt tKHUHRI mDy bH AOORttHG tR RtKHU QIBV.

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tKH IVVuH LQ cRmpOLDQcH ZLtK DppOLcDbOH ODZV.

BLG/IVVuH PURJUDmmH

BID/ISSUE OPENED ON FULGDy, ApULO 23
UG
2010
BID/ISSUE CLOSED ON WHGQHVGDy, ApULO 2S, 2010

AppOLcDtLRQ DQG BLGGLQJ

Hd cum Appcuton Fo)m
OIDs sIall only usc iIc scrially nunlcrcd Did cun Applicaiion Forn supplicd ly iIc Dool Funning Lcad
Managcr in ciiIcr clccironic forn or ly pIysical dclivcry for iIc purposc of naling a Did (including
rcvision of a Didi in accordancc wiiI iIc icrns of iIc Prclininary Placcncni Docuncni or iIc Placcncni
Docuncni.

Dy naling a Did (including iIc rcvision iIcrcofi for Equiiy SIarcs pursuani io iIc icrns of iIc
Prclininary Placcncni Docuncni & iIc Placcncni Docuncni, cacI OID will lc dccncd io Iavc nadc iIc
following rcprcscniaiions and warraniics and iIc rcprcscniaiions, warraniics and agrccncnis nadc undcr
iIc scciions and paragrapIs NRtLcH tR IQYHVtRUV - RHpUHVHQtDtLRQ by IQYHVtRUV", DLVtULbutLRQ DQG
SROLcLtDtLRQ RHVtULctLRQV" DQG TUDQVIHU RHVtULctLRQV"

a. iIc OID confirns iIai ii is a Oualificd Insiiiuiional Duycr (QIB"i in icrns of Fcgulaiion 2(1i(zdi of iIc
SEDI ICDF Fcgulaiions, Iavc a valid and cisiing rcgisiraiion undcr iIc applicallc laws in India (as
applicallci and is cligillc io pariicipaic in iIis Issuc;

l. iIc OID confirns iIai ii is noi a pronoicr and is noi a pcrson rclaicd io iIc pronoicrs, ciiIcr dirccily
or indirccily, and iis Did docs noi dirccily or indirccily rcprcscni iIc pronoicr or pronoicr group or
pcrsons rclaicd io iIc pronoicrs of our Conpany;

c. iIc OID confirns iIai ii Ias no rigIis undcr a sIarcIoldcrs agrccncni or voiing agrccncni wiiI iIc
pronoicrs or pcrsons rclaicd io iIc pronoicrs, no vcio rigIis or rigIi io appoini any nonincc dirccior
on iIc Doard of our Conpany oiIcr iIan iIai acquircd in iIc capaciiy of a lcndcr noi Iolding any
Equiiy SIarcs wIicI sIall noi lc dccncd io lc a pcrson rclaicd io iIc pronoicrs;

d. iIc OID Ias no rigIi io wiiIdraw iis Did aficr iIc Did Closing Daic;

c. iIc OID confirns iIai if alloiicd Equiiy SIarcs pursuani io iIis Placcncni Docuncni, ii sIall, for a
pcriod of onc ycar fron alloincni, scll iIc Equiiy SIarcs so acquircd only on iIc Siocl EcIangcs;

f. iIc OID confirns iIai iIc OID is cligillc io Did and Iold Equiiy SIarcs so alloiicd and iogciIcr wiiI
any Equiiy SIarcs Icld ly iIc OID prior io iIc Issuc and iIc OID furiIcr confirns iIai iIc Ioldings of


iIc OID, do noi and sIall noi, ccccd iIc lcvcl pcrnissillc as pcr any rcgulaiions applicallc io iIc
OID;

g. iIc OID confirns iIai iIc Did would noi cvcniually rcsuli in iriggcring an opcn offcr undcr iIc SEDI
(Sulsianiial Acquisiiion of SIarcs and Talcovcrsi Fcgulaiions, 1997;

I. iIai io iIc lcsi of iis lnowlcdgc and lclicf iogciIcr wiiI oiIcr OIDs in iIc Issuc iIai lclong io iIc
sanc group or arc undcr connon conirol, iIc alloincni io iIc OID or sucI group of OIDs sIall noi
ccccd 50% of iIc aggrcgaic anouni of iIc Issuc. For iIc purposcs of iIis siaicncni.

(ii iIc cprcssion lclongs io iIc sanc group" sIall dcrivc ncaning fron iIc conccpi of conpanics
undcr iIc sanc group" as providcd in sul-scciion (11i of Scciion 372 of iIc Conpanics Aci, 1956; and
(iii Conirol" sIall Iavc iIc sanc ncaning as is assigncd io ii undcr Clausc (ci of sul-rcgulaiion (1i of
Fcgulaiion 2 of iIc Talcovcr Codc;;

i. TIc OID sIall noi undcrialc any iradc in iIc Equiiy SIarcs crcdiicd io iis Dcposiiory Pariicipani
accouni uniil sucI iinc iIai iIc final lisiing and irading approvals for iIc Equiiy SIarcs arc issucd ly
iIc Siocl EcIangcs.

QIBS WOULD NEED TO PROVIDE THEIR DEPOSITORY ACCOUNT DETAILS, THEIR DEPOSITORY
PARTICIPANT'S NAME, DEPOSITORY PARTICIPANT IDENTIFICATION NUMBER AND BENEFICIARY
ACCOUNT NUMBER IN THE APPLICATION FORM. QIBS MUST ENSURE THAT THE NAME GIVEN IN
THE APPLICATION FORM IS EXACTLY THE SAME AS THE NAME IN WHICH THE DEPOSITORY
ACCOUNT IS HELD.

DcnograpIic dciails sucI as addrcss and lanl accouni will lc oliaincd fron iIc Dcposiiorics as pcr iIc
Dcposiiory Pariicipani accouni dciails givcn alovc. TIc sulnission of an Applicaiion Forn ly iIc OIDs
sIall lc dccncd a valid, linding and irrcvocallc offcr for iIc OID io pay iIc cniirc Offcr pricc for iis sIarc
of Alloincni (as indicaicd ly iIc CANi, and lcconcs a linding coniraci on iIc OID, upon issuancc of iIc
CAN ly our Conpany in favour of iIc OID.

BLGV by MutuDO FuQGV

TIc Dids nadc ly iIc assci nanagcncni conpanics or cusiodian of MFs sIall spccifically siaic iIc nancs
of iIc conccrncd scIcncs for wIicI iIc Dids arc nadc. EacI scIcnc1fund of a nuiual fund will Iavc io
sulnii scparaic Did-cun-Applicaiion Forn.

In casc of a MF, a scparaic Did can lc nadc in rcspcci of cacI scIcnc of iIc MF rcgisicrcd wiiI SEDI
and sucI Dids in rcspcci of norc iIan onc scIcnc of iIc MF will noi lc ircaicd as nuliiplc Dids providcd
iIai iIc Dids clcarly indicaic iIc scIcnc for wIicI iIc Did Ias lccn nadc.

As pcr iIc currcni rcgulaiions, iIc following rcsiriciions arc applicallc for invcsincnis ly MFs.

No MF scIcnc sIall invcsi norc iIan 10% of iis nci assci valuc in Equiiy SIarcs or cquiiy rclaicd
insiruncnis of any conpany providcd iIai iIc linii of 10% sIall noi lc applicallc for invcsincnis in
indc funds or sccior or indusiry spccific funds. No MF undcr all iis scIcncs sIould own norc iIan 10%
of any conpany's paid-up capiial carrying voiing rigIis.

TIc alovc infornaiion is givcn for iIc lcncfii of iIc Diddcrs. Wc and iIc DFLMs arc noi liallc for any
ancndncnis or nodificaiion or cIangcs in applicallc laws or rcgulaiions, wIicI nay Iappcn aficr iIc
daic of iIc Placcncni Docuncni. Diddcrs arc adviscd io nalc iIcir indcpcndcni invcsiigaiions and
cnsurc iIai iIc nunlcr of Equiiy SIarcs Did for do noi ccccd iIc applicallc liniis undcr iIc applicallc
laws and rcgulaiions.



SubmLVVLRQ RI BLG cum AppOLcDtLRQ FRUm

All Did cun Applicaiion Forns sIall lc duly conplcicd including pricc and iIc nunlcr of Equiiy SIarcs
Did. All Did cun Applicaiion Forns duly conplcicd along wiiI copy of iIc PAN card sIall lc sulniiicd io
iIc DFLM. TIc Did cun Applicaiion Forn sIall lc sulniiicd wiiIin iIc lidding Pcriod io iIc Dool
Funning Lcad Managcr ciiIcr in clccironic forn or iIrougI pIysical dclivcry ai iIc following addrcss.

VC CORPORATE ADVISORS PRIVATE LIMITED

31, CancsI CIandra Avcnuc
2
nd
Floor, Suiic No. 2C, Kollaia-700 013
PI. (033i 2225 39401394114116
Fa. (033i 2225 3941
Wcl Siic. www.vccorporaic.con
E-nail. - nail.vccorporaic.con
CRQtDct PHUVRQ: MU. AQup KumDU SKDUmD

TIc DFLM sIall noi lc rcquircd io providc any wriiicn aclnowlcdgcncni of iIc sanc.

PULcLQJ DQG AOORcDtLRQ

Bu11d1ng o] 1e BooK

OIDs sIall sulnii iIcir Dids (including iIc rcvision of iIcir lidsi iIrougI iIc Did cun Applicaiions Forn
wiiIin iIc Didding Pcriod io iIc Dool Funning Lcad Managcr wIo sIall nainiain iIc Dool.

Pr1oe d1soouerg ond o11ooo11on

Our Conpany, in consuliaiion wiiI iIc DFLM, sIall finalisc iIc Offcr Pricc wIicI sIall lc ai or alovc iIc
Floor Pricc. Aficr finalisaiion of iIc Offcr pricc, our Conpany sIall Iavc updaicd iIc Prclininary
Placcncni Docuncni wiiI iIc Issuc dciails and filc iIc final Placcncni Docuncni wiiI iIc Siocl
EcIangcs.

Me1od o] A11ooo11on

Our Conpany sIall dcicrninc iIc allocaiion in consuliaiion wiiI iIc Dool Funning Lcad Managcr in
conpliancc wiiI CIapicr VIII of iIc SEDI Fcgulaiions.

Dids rcccivcd fron OIDs ai or alovc iIc Offcr Pricc sIall lc groupcd iogciIcr io dcicrninc iIc ioial
dcnand. Any allocaiion io all sucI OIDs will lc nadc ai iIc Offcr Pricc. Allocaiion sIall lc dccidcd ly our
Conpany in consuliaiion wiiI iIc Dool Funning Lcad Managcr on a discrciionary lasis for a nainun of
49 Invcsiors.

Allocaiion io Muiual Funds for up io a nininun of 10% of iIc aggrcgaic anouni of iIc Issuc sIall lc
undcrialcn suljcci io valid Dids lcing rcccivcd ai or alovc iIc Offcr Pricc.

THE DECISION OF OUR COMPANY AND THE BOOK RUNNING LEAD MANAGER IN RESPECT OF
ALLOCATION SHALL BE FINAL AND BINDING ON ALL QIBS. QIBS MAY NOTE THAT ALLOCATION
OF EQUITY SHARES IS AT THE SOLE AND ABSOLUTE DISCRETION OF OUR COMPANY AND QIBS
MAY NOT RECEIVE ANY ALLOCATION, EVEN IF THEY HAVE SUBMITTED VALID BIDS AT OR
ABOVE THE OFFER PRICE. NEITHER OUR COMPANY NOR THE BOOK RUNNING LEAD MANAGER
ARE OBLIGED TO ASSIGN ANY REASONS FOR SUCH NON-ALLOCATION.




Number o] A11o11ees

TIc nininun nunlcr of alloiiccs for cacI qualificd insiiiuiional placcncni sIall noi lc lcss iIan.

x iwo, wIcrc iIc issuc sizc is lcss iIan or cqual io Fs.2.5 lillion; and
x fivc, wIcrc iIc issuc sizc is grcaicr iIan Fs.2.5 lillion.

Providcd iIai no singlc alloiicc sIall lc alloiicd norc iIan 50% of iIc aggrcgaic anouni of iIc Issuc Sizc.

Providcd furiIcr iIai OIDs lclonging io iIc sanc group or iIosc wIo arc undcr connon conirol sIall lc
dccncd io lc a singlc alloiicc for iIc purposc of iIis clausc. For dciails of wIai consiiiuics sanc group 'or
connon conirol' scc App11oo11on Prooess-App11oo11on FRUm.

TIc nainun nunlcr of Alloiiccs of Equiiy SIarcs sIall noi lc grcaicr iIan 49 Alloiiccs. FuriIcr, iIc
Equiiy SIarcs sIall lc alloiicd wiiIin 12 noniIs fron iIc daic of iIc sIarcIoldcrs rcsoluiion approving
iIc Issuc.

CRQILUmDtLRQ RI AOORcDtLRQ NRtHV (CAN)

Dascd on iIc Did cun Applicaiion Forns rcccivcd, our Conpany and iIc Dool Funning Lcad Managcr
will dccidc iIc lisi of OIDs io wIon iIc scrially nunlcrcd CAN sIall lc scni, pursuani io wIicI iIc
dciails of iIc Equiiy SIarcs allocaicd io iIcn and iIc dciails of iIc anounis payallc ly iIcn for
Alloincni of iIc Equiiy SIarcs in iIcir rcspcciivc nancs sIall lc noiificd io sucI Invcsiors. Addiiionally,
iIc CAN would includc dciails of iIc lanl accouni(si for iransfcr of funds if donc clccironically, addrcss
wIcrc iIc applicaiion noncy nccds io lc scni, Pay-In Daic as wcll as iIc prolallc dcsignaicd daic
(DHVLJQDtHG DDtH"i, lcing iIc daic of crcdii of iIc Equiiy SIarcs io iIc invcsior's accouni, as applicallc
io iIc rcspcciivc OIDs.

TIc cligillc OIDs would also lc scni a scrially nunlcrcd Placcncni Docuncni ciiIcr in clccironic forn or
ly pIysical dclivcry alongwiiI iIc scrially nunlcrcd CAN.
TIc dispaicI of iIc scrially nunlcrcd Placcncni Docuncni and iIc CAN ly iIc OID sIall lc dccncd a
valid, linding and irrcvocallc coniraci for iIc OID io furnisI all dciails iIai nay lc rcquircd ly iIc Dool
Funning Lcad Managcr and io pay iIc cniirc Offcr Pricc for all iIc Equiiy SIarcs allocaicd io sucI OID.

QIBS WOULD NEED TO PROVIDE THEIR DEPOSITORY ACCOUNT DETAILS, THEIR DEPOSITORY
PARTICIPANT'S NAME, DEPOSITORY PARTICIPANT IDENTIFICATION NUMBER AND BENEFICIARY
ACCOUNT NUMBER IN THE BID CUM APPLICATION FORM. QIBS MUST ENSURE THAT THE NAME
GIVEN IN THE BID CUM APPLICATION FORM IS EXACTLY THE SAME AS THE NAME IN WHICH THE
DEPOSITORY ACCOUNT IS HELD. FOR THIS PURPOSE,

ELIGIBLE SUB-ACCOUNTS OF A FII WOULD BE CONSIDERED AS AN INDEPENDENT QIB.

EacI scIcnc or fund of a nuiual fund will Iavc io sulnii scparaic Did cun Applicaiion Forns.
DcnograpIic dciails lilc addrcss, lanl accouni cic. will lc oliaincd fron iIc Dcposiiorics in accordancc
wiiI iIc dcnai accouni dciails givcn alovc.

Dy sulniiiing iIc Did cun Applicaiion Forn, iIc OID will lc dccncd io Iavc nadc iIc rcprcscniaiions
and warraniics as spccificd undcr iIc scciion, Hotcc to Inucsto)s-Hcp)cscntuton Iu Inucsto)s" and
IuUtKHU tKDt VucK QIB VKDOO QRt uQGHUtDkH DQy tUDGH LQ tKH EquLty SKDUHV cUHGLtHG tR LtV GHpRVLtRUy
pDUtLcLpDQt DccRuQt uQtLO VucK tLmH tKDt tKH ILQDO OLVtLQJ DQG tUDGLQJ DppURYDO IRU tKH EquLty SKDUHV
LV LVVuHG by tKH StRck ExcKDQJHV.

QIBV DUH DGYLVHG tR LQVtUuct tKHLU DHpRVLtRUy PDUtLcLpDQt tR DccHpt tKH EquLty SKDUHV tKDt mDy bH
DOORcDtHG /DOORttHG tR tKHm puUVuDQt tR tKLV IVVuH.



CRmpDQy AccRuQt IRU PDymHQt RI AppOLcDtLRQ MRQHy

Our Conpany Ias opcncd a Escrow lanl accouni wiiI ICICI Danl Liniicd, aciing as iIc Escrow Agcni
(iIc EVcURZ CDVK AccRuQti in icrns of iIc arrangcncni lciwccn our Conpany, iIc Dool Funning Lcad
Managcr & iIc Escrow lanl. TIc OIDs will lc rcquircd io dcposii iIc cniirc anouni payallc for iIc
Equiiy SIarcs allocaicd io ii ly iIc Pay-In Daic as ncniioncd in iIc rcspcciivc CANs.
If iIc payncni is noi nadc favoring iIc Escrow CasI Accouni wiiIin iIc iinc siipulaicd in iIc CAN, iIc
Applicaiion Forn and iIc CAN of iIc OID arc liallc io lc canccllcd.

In casc of canccllaiions or dcfauli ly iIc OIDs, our Conpany, in consuliaiion wiiI iIc Dool Funning Lcad
Managcr Ias iIc rigIi io rcallocaic iIc Equiiy SIarcs ai iIc Offcr pricc anong cisiing or ncw OIDs ai iis
solc and alsoluic discrciion, suljcci io conpliancc wiiI iIc rcquircncni of cnsuring iIai iIc Applicaiion
Forns arc scni io noi norc iIan 49 OIDs.

Pogmen1 1ns1ruo11ons
TIc payncni of applicaiion noncy sIall lc nadc ly iIc OIDs in iIc nanc of PIillips Carlon Dlacl
Liniicd -OIP Escrow Accouni" as pcr iIc payncni insiruciions providcd in iIc CAN.
OIDs nay nalc payncni iIrougI cIcquc or clccironic fund iransfcr.

Noic- Payncni of iIc anounis iIrougI ouisiaiion cIcqucs arc liallc io lc rcjccicd.

es1gno1ed o1e ond A11o1men1 o] qu11g Sores
1. TIc Equiiy SIarcs will noi lc alloiicd unlcss iIc OIDs pay iIc Offcr pricc io iIc Escrow CasI Accouni
as siaicd alovc.

2. Suljcci io iIc saiisfaciion of iIc icrns and condiiions of iIc Placcncni Agrccncni, our Conpany will
cnsurc iIai iIc Alloincni of iIc Issuc SIarcs (as sucI icrn is dcfincd in iIc Placcncni Agrccncnii is
conplcicd ly iIc Dcsignaicd Daic providcd in iIc CAN for iIc OIDs wIo Iavc paid iIc aggrcgaic
sulscripiion anounis as providcd in iIc CANs.

3. In accordancc wiiI iIc SEDI Fcgulaiions, Equiiy SIarcs will lc issucd and Alloincni sIall lc nadc
only in iIc dcnaicrializcd forn io iIc Alloiiccs. Alloiiccs will Iavc iIc opiion io rc-naicrializc iIc Equiiy
SIarcs, if iIcy so dcsirc, as pcr iIc provisions of iIc Conpanics Aci and iIc Dcposiiorics Aci, 1996.

4. TIc Conpany rcscrvcs iIc rigIi io canccl iIc Issuc ai any iinc up io Alloincni wiiIoui assigning any
rcasons wIaisocvcr.

5. Posi Alloincni and crcdii of Equiiy SIarcs inio iIc OIDs Dcposiiory Pariicipani accouni, our Conpany
will apply for final irading pcrnission on iIc Siocl EcIangcs.

6. In iIc unlilcly cvcni of any dclay in iIc Alloincni or crcdii of Equiiy SIarcs, or rcccipi of irading or
lisiing approvals or canccllaiion of iIc Issuc, no inicrcsi or pcnaliy would lc payallc ly our Conpany or
iIc Dool Funning Lcad Managcr.

7. TIc Escrow Agcni sIall noi rclcasc iIc nonics lying io iIc crcdii of iIc Escrow CasI Accouni io our
Conpany, uniil sucI iinc as our Conpany dclivcrs io iIc Escrow Agcni docuncniaiion (ii a ccriificd iruc
copy of a rcsoluiion of iIc Doard of Dircciors or a duly consiiiuicd conniiicc iIcrcof issuing and alloiiing
iIc SIarcs pursuani io iIc Issuc; and (iii ccriificd iruc copics of iIc in principlc approval undcr clausc
24(ai of iIc lisiing agrccncni rcccivcd fron Donlay Siocl EcIangc Liniicd and TIc Naiional Siocl
EcIangc of India Liniicd for lisiing of iIc SIarcs.

Subm1ss1on 1o 1e SB1
Our Conpany sIall sulnii iIc Placcncni Docuncni io iIc SEDI wiiIin 30 days of iIc daic of Alloincni
for rccord purposcs.



OtKHU IQVtUuctLRQV
Permonen1 Aoooun1 Number or PAN
EacI OID sIould ncniion iis PAN alloiicd undcr iIc I.T. Aci. TIc copy of iIc PAN card or PAN alloincni
lciicr is rcquircd io lc sulniiicd wiiI iIc Applicaiion Forn. Applicaiions wiiIoui iIis infornaiion will lc
considcrcd inconplcic and arc liallc io lc rcjccicd. Ii is io lc spccifically noicd iIai applicanis sIould noi
sulnii iIc CIF nunlcr insicad of iIc PAN as iIc Applicaiion Forn is liallc io lc rcjccicd on iIis ground.

R1g1 1o Re]eo1 App11oo11ons
Our Conpany, in consuliaiion wiiI iIc Dool Funning Lcad Managcr, nay rcjcci Applicaiions, in pari or
in full, wiiIoui assigning any rcasons wIaisocvcr. TIc dccision of our Conpany and Dool Funning Lcad
Managcr in rclaiion io iIc rcjcciion of Applicaiions sIall lc final and linding.

EquLty SKDUHV LQ GHmDtHULDOLVHG IRUm ZLtK NSDL RU CDSL

As pcr iIc provisions of Scciion 68D of iIc Conpanics Aci, iIc alloincni of Equiiy SIarcs pursuani io iIc
Issuc sIall lc only in a dcnaicrialiscd forn (i.c., noi in iIc forn of pIysical ccriificaics lui io lc fungillc
and io lc rcprcscnicd ly iIc siaicncni issucd iIrougI iIc clccironic nodci.

a. A OID applying for Equiiy SIarcs nusi Iavc ai lcasi onc lcncficiary accouni wiiI ciiIcr of iIc
Dcposiiory Pariicipanis of ciiIcr NSDL or CDSL prior io naling iIc Did.
l. Alloincni io a succcssful OID will lc crcdiicd in clccironic forn dirccily io iIc lcncficiary accouni
(wiiI iIc Dcposiiory Pariicipanii of iIc OID.
c. Equiiy SIarcs in clccironic forn can lc iradcd only on iIc siocl ccIangcs Iaving clccironic
conncciiviiy wiiI NSDL and CDSL. All iIc Siocl EcIangcs wIcrc our Equiiy SIarcs arc proposcd
io lc lisicd Iavc clccironic conncciiviiy wiiI CDSL and NSDL.
d. TIc irading of our Equiiy SIarcs would lc in dcnaicrialiscd forn only for all OIDs in iIc dcnai
scgncni of iIc rcspcciivc Siocl EcIangcs.
c. Our Conpany sIall noi lc rcsponsillc or liallc for iIc dclay in iIc crcdii of Equiiy SIarcs duc io
crrors in iIc Did cun Applicaiion Forn or on iIc pari of iIc OIDs.





PLACEMENT

Placcncni Agrccncni


TIc Dool Funning Lcad Managcr Ias cnicrcd inio an agrccncni wiiI our Conpany, pursuani io wIicI
iIc Dool Funning Lcad Managcr Ias agrccd io usc iis rcasonallc cfforis io procurc OIDs io sulscrilc io
sucI nunlcr of our Conpany's Equiiy SIarcs as nay lc agrccd anong iIc Conpany and iIc Dool
Funning Lcad Managcr, pursuani io CIapicr VIII of iIc SEDI Fcgulaiions ouisidc iIc U.S., in rcliancc on
Fcgulaiion S undcr iIc Sccuriiics Aci, and wiiIin iIc U.S. io qualificd insiiiuiional luycrs (as sucI icrn
is dcfincd in Fulc 144A undcr iIc Sccuriiics Acii, pursuani io scciion 4(2i of iIc Sccuriiics Aci.

TIc Placcncni Agrccncni coniains cusionary rcprcscniaiions and warraniics, as wcll as indcnniiics
fron our Conpany and is suljcci io ccriain condiiions and icrninaiion provisions in accordancc wiiI iIc
icrns coniaincd iIcrcin.

Applicaiions sIall lc nadc io lisi iIc Equiiy SIarcs issucd pursuani io iIc Issuc and adnii iIcn io
irading on iIc Siocl EcIangcs. No assurancc can lc givcn as io iIc liquidiiy or susiainaliliiy of iIc
irading narlci for iIc Equiiy SIarcs, iIc aliliiy of Ioldcrs of iIc Equiiy SIarcs io scll iIcir Equiiy SIarcs
or iIc pricc ai wIicI Ioldcrs of iIc Equiiy SIarcs will lc allc io scll iIcir Equiiy SIarcs.

TIc Prclininary Placcncni Docuncni and iIc Placcncni Docuncni Iavc noi lccn, and will noi lc,
rcgisicrcd as a prospccius wiiI iIc FoC and, no Equiiy SIarcs will lc offcrcd in India or ovcrscas io iIc
pullic or any ncnlcrs of iIc pullic in India or any oiIcr class of Invcsiors, oiIcr iIan OIDs.

TIc DFLM (or iIcir Affiliaicsi, for iIcir own accounis, nay Iavc cnicrcd or cnicr inio assci swaps, crcdii
dcrivaiivcs or oiIcr dcrivaiivc iransaciions, or nay Iavc purcIascd or purcIasc, or nay Iavc lccn
granicd or lc granicd, opiions, convcriillc londs or oiIcr sccuriiics, in cacI casc rclaiing io iIc Equiiy
SIarcs, prior io or ai iIc sanc iinc as iIc offcr and salc of iIc Equiiy SIarcs, or in sccondary narlci
iransaciions. As a rcsuli of sucI iransaciions, iIc DFLM nay, currcnily or in iIc fuiurc, Iold long or
sIori posiiions in sucI Equiiy SIarcs. TIcsc iransaciions nay conprisc a sulsianiial poriion of iIc Issuc
and no spccific disclosurc will lc nadc of sucI posiiions. Affiliaics of iIc DFLM nay also purcIasc Equiiy
SIarcs and lc allocaicd Equiiy SIarcs for propriciary purposcs and noi wiiI a vicw io disiriluiion or in
conncciion wiiI iIc issuancc of P-Noics.

LRck-up

Our Conpany Ias agrccd wiiI iIc Dool Funning Lcad Managcr, iIai ii sIall noi, and sIall noi announcc
an inicniion io, wiiIoui iIc prior wriiicn conscni of iIc Dool Funning Lcad Managcr during iIc pcriod
conncncing on iIc daic of iIc Placcncni Agrccncni and cnding 45 days aficr iIc daic of Alloincni of iIc
Equiiy SIarcs pursuani io iIc Issuc, dirccily or indirccily.

a. issuc, offcr, lcnd, scll, coniraci io scll, plcdgc, cncunlcr, scll any opiion or coniraci io purcIasc,
purcIasc any opiion or coniraci io scll, grani any opiion, rigIi or warrani io purcIasc, nalc any
sIori salc, lcnd or oiIcrwisc iransfcr or disposc of any Equiiy SIarcs, including lui noi liniicd io
any opiions or warranis io purcIasc any Equiiy SIarcs, or any sccuriiics convcriillc inio or
ccrcisallc or ccIangcallc for, or iIai rcprcscni iIc rigIi io rcccivc, Equiiy SIarcs;

l. cnicr inio any swap or oiIcr agrccncni iIai iransfcrs, dirccily or indirccily, in wIolc or in pari, any
of iIc ccononic conscqucnccs of owncrsIip of iIc Equiiy SIarcs or any sccuriiics convcriillc inio
or ccrcisallc or ccIangcallc for Equiiy SIarcs;



c. dcposii any Equiiy SIarcs, or any sccuriiics convcriillc inio or ccrcisallc or ccIangcallc for iIc
Equiiy SIarcs or wIicI carry iIc rigIis io sulscrilc for or purcIasc Equiiy SIarcs, in any
dcposiiary rcccipi faciliiy or cnicr inio any iransaciion (including a iransaciion involving
dcrivaiivcsi Iaving an ccononic cffcci sinilar io iIai of a salc or dcposii of Equiiy SIarcs in any
dcposiiary rcccipi faciliiy; or

d. announcc any inicniion io cnicr inio any iransaciion dcscrilcd in (ai, (li or (ci alovc, wIciIcr any
sucI iransaciion dcscrilcd in (ai, (li or (ci alovc is io lc sciilcd ly dclivcry of iIc Equiiy SIarcs, or
sucI oiIcr sccuriiics, in casI or oiIcrwisc, providcd iIai iIc forcgoing rcsiriciions sIall noi apply
io (ii iIc Issuc SIarcs; (iii any Equiiy SIarcs io lc issucd upon iIc ccrcisc of an opiion undcr any
cnploycc siocl opiion plans or scIcncs cisiing on iIc daic Icrcof and as dcscrilcd in iIc
Prclininary Placcncni Docuncnis and (iiii issuc of warranis and Equiiy SIarcs pursuani io iIc
approval of iIc SIarcIoldcrs wIo Iavc ly way of posial lalloi on April16, 2010, approvcd iIc
Prcfcrcniial Issuc of upio 12,50,000 warranis convcriillc inio cqual nunlcr Equiiy SIarcs ai a
floor pricc of Fs. 1961- calculaicd in accordancc wiiI CIapicr VII of iIc SEDI Fcgulaiions for a
sun of noi ccccding Fs. 2450 lalIs io iIc Pronoicr 1 Pronoicr Croup of our Conpany.

TIc Pronoicrs and Pronoicr Croup of our Conpany Iavc agrccd wiiI iIc Dool Funning Lcad Managcr,
iIai wiiIoui iIc prior wriiicn conscni of iIc Dool Funning Lcad Managcr, cacI of iIcn will noi, and will
noi announcc any inicniion io, during iIc pcriod conncncing on iIc daic of iIc Placcncni Agrccncni and
cnding 45 days aficr iIc daic of Alloincni of iIc Equiiy SIarcs pursuani io iIc Issuc, dirccily or
indirccily, issuc, offcr, lcnd, scll, coniraci io scll, plcdgc, cncunlcr, scll any opiion or coniraci io
purcIasc, purcIasc any opiion or coniraci io scll, grani any opiion, rigIi or warrani io purcIasc, nalc
any sIori salc, lcnd or oiIcrwisc iransfcr or disposc of any Equiiy SIarcs, including lui noi liniicd io any
opiions or warranis io purcIasc any Equiiy SIarcs, or any sccuriiics convcriillc inio or ccrcisallc or
ccIangcallc for, or iIai rcprcscni iIc rigIi io rcccivc, Equiiy SIarcs or cnicr inio any swap or oiIcr
agrccncni iIai iransfcrs, dirccily or indirccily, in wIolc or in pari, any of iIc ccononic conscqucnccs of
owncrsIip of iIc Equiiy SIarcs or any sccuriiics convcriillc inio or ccrcisallc or ccIangcallc for Equiiy
SIarcs or dcposii any Equiiy SIarcs, or any sccuriiics convcriillc inio or ccrcisallc or ccIangcallc for
iIc Equiiy SIarcs or wIicI carry iIc rigIis io sulscrilc for or purcIasc Equiiy SIarcs, in any dcposiiary
rcccipi faciliiy or cnicr inio any iransaciion (including a iransaciion involving dcrivaiivcsi Iaving an
ccononic cffcci sinilar io iIai of a salc or dcposii of Equiiy SIarcs in any dcposiiary rcccipi faciliiy,
providcd iIai iIc rcsiriciions coniaincd alovc would noi apply io any salc, iransfcr or disposiiion of Equiiy
SIarcs or any sccuriiics convcriillc inio or ccrcisallc or ccIangcallc for Equiiy SIarcs io iIc cicni
rcquircd undcr applicallc law or rcgulaiion, or arising oui of iIc cnforccncni of any plcdgcs of Equiiy
SIarcs Icld ly iIc Pronoicrs and Pronoicr Croup of our Conpany cisiing as on iIc daic of iIc
Placcncni Agrccncni or wIicI nay lc rcquircd in conncciion wiiI plcdgcs crcaicd in iIc fuiurc, in
conncciion wiiI any lorrowings of our Conpany providcd iIai iIc Pronoicrs and Pronoicrs Croup of our
Conpany nay iransfcr SIarcs and oiIcr sccuriiics anongsi iIc ncnlcrs of iIc Pronoicrs and Pronoicr
Croup of our Conpany wIo Iavc lccn classificd as Pronoicr Croup as pcr filing nadc undcr Clausc 35 of
iIc Lisiing Agrccncni io iIc Siocl EcIangcs or ncwly inducicd as consiiiucnis of Pronoicr Croup ly
Our Conpany.

CHUtLILcDtH RI UHJLVtUDtLRQ RI VC CORPORATE ADVISORS PRIVATE LIMITED

TIc ccriificaic of rcgisiraiion of VC Corporaic Advisors Privaic Liniicd as a Caicgory 1 McrcIani Danlcr
oliaincd fron iIc Sccuriiics and EcIangc Doard of India in iIc nanc of VC Corporaic Advisors Privaic
Liniicd s valid up io January 11, 2013.





DISTRIBUTION AND SOLICITION RESTRICTIONS


3e d1s1r1bu11on o] 11s P1ooemen1 ooumen1 ond 1e o]]er1ng, so1e or de11uerg o] 1e qu11g Sores
1s res1r1o1ed bg 1ou 1n oer1o1n ]ur1sd1o11ons. 3ere]ore, persons uo mog oome 1n1o possess1on o]
11s P1ooemen1 ooumen1 ore odu1sed 1o oonsu11 u11 1e1r oun 1ego1 odu1sors os 1o uo1
res1r1o11ons mog be opp11oob1e 1o 1em ond 1o obserue suo res1r1o11ons. 31s P1ooemen1 ooumen1
mog no1 be used ]or 1e purpose o] on o]]er or 1nu11o11on 1n ong o1roums1onoes 1n u1o suo o]]er
or 1nu11o11on 1s no1 ou1or1sed.

GHQHUDO

No aciion Ias lccn or will lc ialcn in any jurisdiciion iIai would pcrnii a pullic offcring of iIc Equiiy
SIarcs or iIc posscssion, circulaiion or disiriluiion of iIis Placcncni Docuncni or any oiIcr naicrial
rclaiing io us or iIc Equiiy SIarcs in any jurisdiciion wIcrc aciion for iIc purposc is rcquircd. Accordingly,
iIc Equiiy SIarcs nay noi lc offcrcd or sold, dirccily or indirccily and nciiIcr iIis Placcncni Docuncni
nor any oiIcr offcring naicrial or advcriiscncnis in conncciion wiiI iIc Equiiy SIarcs nay lc disiriluicd
or pullisIcd, in or fron any couniry or jurisdiciion cccpi undcr circunsianccs iIai will rcsuli in
conpliancc wiiI any applicallc rulcs and rcgulaiions of any sucI couniry or jurisdiciion. TIc Issuc will lc
nadc in conpliancc wiiI iIc applicallc SEDI Fcgulaiions. EacI sulscrilcr of iIc Equiiy SIarcs in iIc
Issuc will lc rcquircd io nalc, or io lc dccncd io Iavc nadc, as applicallc, iIc aclnowlcdgncnis and
agrccncnis as dcscrilcd undcr iIc scciion 3rons]er Res1r1o11ons".

uropeon oonom1o Areo

In rclaiion io cacI Mcnlcr Siaic of iIc Europcan Econonic Arca wIicI Ias inplcncnicd iIc Prospccius
Dircciivc (20031711ECi (cacI, a RHOHYDQt MHmbHU StDtH"i an offcr io iIc pullic of any Equiiy SIarcs nay
noi lc nadc in iIai Fclcvani Mcnlcr Siaic, cccpi iIai iIc Equiiy SIarcs nay lc offcrcd io iIc pullic in
iIai Fclcvani Mcnlcr Siaic ai any iinc undcr iIc following ccnpiions undcr iIc Prospccius Dircciivc, if
iIcy Iavc lccn inplcncnicd in iIai Fclcvani Mcnlcr Siaic.

(ai io lcgal cniiiics wIicI arc auiIoriscd or rcgulaicd io opcraic in iIc financial narlcis or, if noi so
auiIoriscd or rcgulaicd, wIosc corporaic purposc is solcly io invcsi in sccuriiics;

(li io any lcgal cniiiy wIicI Ias iwo or norc of (ii an avcragc of ai lcasi 250 cnployccs during iIc lasi
financial ycar; (iii a ioial lalancc sIcci of norc iIan C43,000,000; and (iiii an annual iurnovcr of
norc iIan C50,000,000, as sIown in iis lasi annual or consolidaicd accounis;

(ci io fcwcr iIan 100 naiural or lcgal pcrsons (oiIcr iIan qualificd invcsiors as dcfincd in iIc
Prospccius Dircciivci suljcci io oliaining iIc prior conscni of iIc DFLM for any sucI offcr; or

(di in any oiIcr circunsianccs falling wiiIin Ariiclc 3(2i of iIc Prospccius Dircciivc,

providcd iIai no sucI offcr of Equiiy SIarcs sIall rcsuli in a rcquircncni for iIc pullicaiion ly our
Conpany or any DFLM of a Prospccius pursuani io Ariiclc 3 of iIc Prospccius Dircciivc and cacI pcrson
wIo iniiially acquircs Equiiy SIarcs or io wIon any offcr is nadc will lc dccncd io Iavc rcprcscnicd,
warranicd and agrccd io and wiiI iIc DFLM and our Conpany iIai ii is a qualificd invcsior" wiiIin iIc
ncaning of iIc law in iIai Fclcvani Mcnlcr Siaic inplcncniing Ariiclc 2(1i(ci of iIc Prospccius Dircciivc.
For iIc purposcs of iIis provision, iIc cprcssion DQ RIIHU RI EquLty SKDUHV tR tKH pubOLc" in rclaiion io
any Equiiy SIarcs in any Fclcvani Mcnlcr Siaic ncans iIc connunicaiion in any forn and ly any ncans
of sufficicni infornaiion on iIc icrns of iIc Issuc and iIc Equiiy SIarcs io lc offcrcd so as io cnallc an
invcsior io dccidc io purcIasc or sulscrilc for iIc Equiiy SIarcs, as iIc sanc nay lc varicd in iIai
Mcnlcr Siaic ly any ncasurc inplcncniing iIc Prospccius Dircciivc in iIai Mcnlcr Siaic and iIc
cprcssion PURVpHctuV DLUHctLYH" ncans Dircciivc 20031711EC and includcs any rclcvani inplcncniing
ncasurc in cacI Fclcvani Mcnlcr Siaic.



In iIc casc of any Equiiy SIarcs lcing offcrcd io a financial inicrncdiary as iIai icrn is uscd in Ariiclc 3(2i
of iIc Prospccius Dircciivc, iIc DFLM Ias agrccd io usc iis rcasonallc cndcavours, ly iIc inclusion of
appropriaic languagc in iIc rclcvani offcr docuncnis, io procurc iIai sucI financial inicrncdiary will lc
dccncd io Iavc rcprcscnicd, aclnowlcdgcd and agrccd iIai iIc Equiiy SIarcs acquircd ly ii in iIc Issuc
Iavc noi lccn acquircd on a non-discrciionary lasis on lcIalf of, nor Iavc iIcy lccn acquircd wiiI a vicw
io iIcir offcr or rcsalc io, pcrsons in circunsianccs wIicI nay givc risc io an offcr of any Equiiy SIarcs io
iIc pullic oiIcr iIan iIcir offcr or rcsalc in a Fclcvani Mcnlcr Siaic io qualificd invcsiors as so dcfincd
wIo arc noi financial inicrncdiarics or in circunsianccs in wIicI iIc prior conscni of iIc DFLM Ias lccn
oliaincd io cacI sucI proposcd offcr or rcsalc.

EacI sulscrilcr for or purcIascr of Equiiy SIarcs in iIc Issuc locaicd wiiIin a Mcnlcr Siaic of iIc
Europcan Econonic Arca will lc dccncd io Iavc rcprcscnicd, aclnowlcdgcd and agrccd iIai ii is a
"qualificd invcsior" wiiIin iIc ncaning of Ariiclc 2(1i(ci of iIc Prospccius Dircciivc. Our Conpany, iIc
DFLM and iis affiliaics, and oiIcrs will rcly upon iIc iruiI and accuracy of iIc forcgoing rcprcscniaiion,
aclnowlcdgcncni, and agrccncni. NoiwiiIsianding iIc alovc, a pcrson wIo is noi a qualificd invcsior and
wIo Ias noiificd iIc DFLM of sucI faci in wriiing nay, wiiI iIc conscni of iIc Undcrwriicrs lc pcrniiicd io
sulscrilc for or purcIasc Equiiy SIarcs in iIc Issuc.

Hong Kong

TIis Placcncni Docuncni Ias noi lccn dclivcrcd for rcgisiraiion io iIc Fcgisirar of Conpanics in Hong
Kong and iis conicnis Iavc noi lccn rcvicwcd ly any rcgulaiory auiIoriiy in Hong Kong. Accordingly, (ii
Equiiy SIarcs nay noi lc offcrcd or sold in Hong Kong, ly ncans of any docuncni, any Equiiy SIarcs
oiIcr iIan (ai io profcssional invcsiors" as dcfincd in iIc Sccuriiics and Fuiurcs Ordinancc (Cap. 571i of
Hong Kong and any rulcs nadc undcr iIai Ordinancc; or (li in oiIcr circunsianccs wIicI do noi rcsuli in
iIc docuncni lcing a prospccius" as dcfincd in iIc Conpanics Ordinancc (Cap. 32i of Hong Kong or wIicI
do noi consiiiuic an offcr io iIc pullic wiiIin iIc ncaning of iIai Ordinancc; and (iii no pcrson nay issuc
or Iavc in iis posscssion for iIc purposcs of issuc, wIciIcr in Hong Kong or clscwIcrc, any advcriiscncni,
inviiaiion or docuncni rclaiing io iIc Equiiy SIarcs, wIicI is dirccicd ai, or iIc conicnis of wIicI arc lilcly
io lc acccsscd or rcad ly, iIc pullic of Hong Kong (cccpi if pcrniiicd io do so undcr iIc sccuriiics laws of
Hong Kongi oiIcr iIan wiiI rcspcci io Equiiy SIarcs wIicI arc or arc inicndcd io lc disposcd of only io
pcrsons ouisidc Hong Kong or only io profcssional invcsiors" as dcfincd in iIc Sccuriiics and Fuiurcs
Ordinancc and any rulcs nadc undcr iIai Ordinancc.

S1ngopore

TIis Placcncni Docuncni Ias noi lccn rcgisicrcd as a prospccius wiiI iIc Monciary AuiIoriiy of
Singaporc undcr iIc Sccuriiics and Fuiurcs Aci, CIapicr 289 of Singaporc (iIc SHcuULtLHV DQG FutuUHV
Act"i. TIc Equiiy SIarcs nay noi lc offcrcd or sold or nadc iIc suljcci of an inviiaiion for sulscripiion or
purcIasc nor nay iIis Placcncni Docuncni or any oiIcr docuncni or naicrial in conncciion wiiI iIc offcr
or salc or inviiaiion for sulscripiion or purcIasc of any Equiiy SIarcs lc circulaicd or disiriluicd, wIciIcr
dirccily or indirccily, io iIc pullic or any ncnlcr of iIc pullic in Singaporc oiIcr iIan (ai io an
insiiiuiional invcsior or oiIcr pcrson falling wiiIin Scciion 274 of iIc Sccuriiics and Fuiurcs Aci, (li io a
rclcvani pcrson, or any pcrson pursuani io Scciion 275(1Ai of iIc Sccuriiics and Fuiurcs Aci, and in
accordancc wiiI iIc condiiions spccificd in Scciion 275 of iIc Sccuriiics and Fuiurcs Aci, or (ci oiIcrwisc
iIan pursuani io, and in accordancc wiiI iIc condiiions of, any oiIcr applicallc provision of iIc Sccuriiics
and Fuiurcs Aci.

EacI of iIc following rclcvani pcrsons spccificd in Scciion 275 of iIc Sccuriiics and Fuiurcs Aci wIicI Ias
sulscrilcd or purcIascd Equiiy SIarcs, nancly a pcrson wIo is. (ai a corporaic (wIicI is noi an accrcdiicd
invcsiori iIc solc lusincss of wIicI is io Iold invcsincnis and iIc cniirc sIarc capiial of wIicI is owncd ly
onc or norc individuals, cacI of wIon is an accrcdiicd invcsior; or (li a irusi (wIcrc iIc irusicc is noi an
accrcdiicd invcsiori wIosc solc purposc is io Iold invcsincnis and cacI lcncficiary is an accrcdiicd
invcsior, sIould noic iIai sIarcs, dclcniurcs and uniis of sIarcs and dclcniurcs of iIai corporaiion or iIc


lcncficiarics' rigIis and inicrcsi in iIai irusi sIall noi lc iransfcrallc for si noniIs aficr iIai corporaiion
or iIai irusi Ias acquircd iIc Equiiy SIarcs undcr Scciion 275 of iIc Sccuriiics and Fuiurcs Aci cccpi. (1i
io an insiiiuiional invcsior undcr Scciion 274 of iIc Sccuriiics and Fuiurcs Aci or io a rclcvani pcrson, or
any pcrson pursuani io Scciion 275(1Ai of iIc Sccuriiics and Fuiurcs Aci, and in accordancc wiiI iIc
condiiions, spccificd in Scciion 275 of iIc Sccuriiics and Fuiurcs Aci; (2i wIcrc no considcraiion is givcn for
iIc iransfcr; or (3i ly opcraiion of law.

Un11ed Arob m1ro1es

TIc Equiiy SIarcs nay noi lc, Iavc noi lccn and will noi lc offcrcd, sold or pullicly pronoicd or
advcriiscd ly ii in iIc Uniicd Aral Eniraics oiIcr iIan in conpliancc wiiI any laws applicallc in iIc
Uniicd Aral Eniraics govcrning iIc issuc, offcring or iIc salc of sccuriiics, and iIc Equiiy SIarcs nay noi
lc, Iavc noi lccn and will noi lc offcrcd, sold or pullicly pronoicd or advcriiscd ly ii in iIc Dulai
Inicrnaiional Financial Ccnirc oiIcr iIan in conpliancc wiiI any laws applicallc in iIc Dulai Inicrnaiional
Financial Ccnirc govcrning iIc issuc, offcring or iIc salc of sccuriiics.

Un11ed K1ngdom

TIc Equiiy SIarcs cannoi lc pronoicd in iIc Uniicd Kingdon io iIc gcncral pullic. No inviiaiion or
induccncni io cngagc in invcsincni aciiviiy (wiiIin iIc ncaning of Scciion 21 of iIc Financial Scrviccs and
Marlcis Aci 2000, as ancndcd (iIc FSMA"i in conncciion wiiI iIc issuc or salcs of any Equiiy SIarcs
nay lc connunicaicd or causcd io lc connunicaicd in circunsianccs in wIicI Scciion 21(1i of iIc FSMA
docs noi apply io us. All applicallc provisions of iIc FSMA nusi lc conplicd wiiI in rcspcci of anyiIing
donc in rclaiion io iIc Equiiy SIarcs in, fron or oiIcrwisc involving iIc Uniicd Kingdon.

Un11ed S1o1es

TIc Equiiy SIarcs Iavc noi lccn and will noi lc rcgisicrcd undcr iIc Sccuriiics Aci, and nay noi lc offcrcd
or sold wiiIin iIc Uniicd Siaics cccpi in ccriain iransaciions ccnpi fron iIc rcgisiraiion rcquircncnis of
iIc Sccuriiics Aci. Tcrns uscd in iIis paragrapI Iavc iIc ncanings givcn io iIcn ly Fcgulaiion S.

TIc Equiiy SIarcs arc lcing offcrcd and sold (ai in iIc Uniicd Siaics only io pcrsons rcasonally lclicvcd io
lc qualificd insiiiuiional luycrs (as dcfincd in Fulc 144A undcr iIc Sccuriiics Acii; and (li ouisidc of iIc
Uniicd Siaics in rcliancc on Fcgulaiion S undcr iIc Sccuriiics Aci. EacI purcIascr of iIc Equiiy SIarcs
offcrcd ly iIis Placcncni Docuncni will lc dccncd io Iavc nadc iIc rcprcscniaiions, agrccncnis and
aclnowlcdgcncnis as dcscrilcd undcr T)uns{c) Hcst)ctons".

1nd1o

TIc Placcncni Docuncni Ias noi lccn and will noi lc rcgisicrcd as a prospccius wiiI iIc Fcgisirar of
Conpanics in India and iIc Equiiy SIarcs will noi lc offcrcd or sold dirccily or indirccily, io iIc pullic or
any ncnlcrs of iIc pullic in India or any oiIcr class of invcsiors oiIcr iIan OIDs.




TRANSFER RESTRICTIONS

Duc to tIc {ooung )cst)ctons, Inucsto)s u)c uduscd to consut cgu counsc p)o) to muIng unu )csuc,
pcdgc o) t)uns{c) o{ ou) Compunu`s Equtu SIu)cs.

PurcIascrs of iIc Equiiy SIarcs in iIis Issuc| arc noi pcrniiicd io scll iIc Equiiy SIarcs for a pcriod of onc
ycar fron iIc daic of alloincni cccpi iIrougI iIc Siocl EcIangcs.

Suljcci io iIc forcgoing.

U.S. OIIHU TUDQVIHU RHVtULctLRQV

EacI purcIascr of iIc Equiiy SIarcs in iIc Uniicd Siaics will lc rcquircd io nalc rcprcscniaiions sulsianiially as
follows.

x Ii (Ai is a quDOLILHG LQVtLtutLRQDO buyHU" (as dcfincd in Fulc 144Ai and (Di is awarc iIai iIc salc of iIc Equiiy
SIarcs io ii is lcing nadc in rcliancc on ccnpiions undcr iIc Sccuriiics Aci.

x Ii is acquiring iIc Equiiy SIarcs for iis own accouni or for iIc accouni of onc or norc cligillc U.S. invcsiors (i.c.,
qualificd insiiiuiional luycrsi, cacI of wIicI is acquiring lcncficial inicrcsis in iIc Equiiy SIarcs for iis own
accouni.

x Ii undcrsiands iIai iIc Equiiy SIarcs Iavc noi lccn and will noi lc rcgisicrcd undcr iIc Sccuriiics Aci and nay
noi lc offcrcd, sold, plcdgcd or oiIcrwisc iransfcrrcd cccpi in an offsIorc iransaciion in accordancc wiiI Fulc 903
or Fulc 904 of Fcgulaiion S and on a rccognizcd siocl ccIangc, as applicallc.

x Ii aclnowlcdgcs iIai iIc Conpany, iIc DFLM, and iIcir affiliaics, and oiIcrs will rcly upon iIc iruiI and accuracy
of iIc forcgoing aclnowlcdgcncnis, rcprcscniaiions and agrccncnis and agrccs iIai, if any of sucI
aclnowlcdgcncnis, rcprcscniaiions or agrccncnis dccncd io Iavc lccn nadc ly viriuc of iis purcIasc of iIc
Equiiy SIarcs arc no longcr accuraic, ii will pronpily noiify iIc Conpany and iIc DFLM.


GORbDO OIIHU TUDQVIHU RHVtULctLRQV
EacI purcIascr of Equiiy SIarcs pursuani io Fcgulaiion S undcr iIc U.S. Sccuriiics, ly acccpiing dclivcry
of iIis Placcncni Docuncni and our Conpany's Equiiy SIarcs, will lc dccncd io Iavc rcprcscnicd and
agrccd as follows.

x Ii is auiIorizcd io consunnaic iIc purcIasc of iIc Equiiy SIarcs in conpliancc wiiI all applicallc
laws and rcgulaiions.

x Ii aclnowlcdgcs (or if ii is a lrolcr-dcalcr aciing on lcIalf of a cusioncr, iis cusioncr Ias
confirncd io ii iIai sucI cusioncr aclnowlcdgcsi iIai sucI Equiiy SIarcs Iavc noi lccn and will
noi lc rcgisicrcd undcr iIc U.S. Sccuriiics Aci.

x Ii ccriifics iIai ciiIcr (Ai ii is, or ai iIc iinc iIc Equiiy SIarcs arc purcIascd will lc, iIc lcncficial
owncr of iIc Equiiy SIarcs and ii is noi a U.S. pcrson and is locaicd ouisidc iIc Uniicd Siaics
(wiiIin iIc ncaning of Fcgulaiion Si or (Di ii is a lrolcr-dcalcr aciing on lcIalf of iis cusioncr and
iis cusioncr Ias confirncd io ii iIai (ii sucI cusioncr is, or ai iIc iinc iIc Equiiy SIarcs arc
purcIascd will lc, iIc lcncficial owncr of iIc Equiiy SIarcs, and (iii sucI cusioncr is noi a U.S.
pcrson and is locaicd ouisidc iIc Uniicd Siaics (wiiIin iIc ncaning of Fcgulaiion Si.

x Ii agrccs (or if ii is a lrolcr-dcalcr aciing on lcIalf of a cusioncr, iis cusioncr Ias confirncd io ii
iIai sucI cusioncr agrccsi iIai prior io iIc cpiraiion of 40 days aficr iIc closing of iIc Clolal
Offcr, ii (or sucI cusioncri will noi offcr, scll, plcdgc or oiIcrwisc iransfcr sucI Equiiy SIarcs
cccpi in an offsIorc iransaciion conplying wiiI Fulc 903 or Fulc 904 of Fcgulaiion S or pursuani
io any oiIcr availallc ccnpiion fron rcgisiraiion undcr iIc U.S. Sccuriiics Aci and in accordancc


wiiI all applicallc sccuriiics laws of iIc siaics of iIc Uniicd Siaics and any oiIcr jurisdiciion.

x Ii aclnowlcdgcs iIai our Conpany, iIc DFLM and iis affiliaics, and oiIcrs will rcly upon iIc iruiI
and accuracy of iIc forcgoing aclnowlcdgncnis, rcprcscniaiions and agrccncnis and agrccs iIai, if
any of sucI aclnowlcdgncnis, rcprcscniaiions or agrccncnis dccncd io Iavc lccn nadc ly viriuc
of iis purcIasc of iIc Equiiy SIarcs arc no longcr accuraic, ii will pronpily noiify our Conpany,
and if ii is acquiring any Equiiy SIarcs as a fiduciary or agcni for onc or norc accounis, ii
rcprcscnis iIai ii Ias solc invcsincni discrciion wiiI rcspcci io cacI sucI accouni and iIai ii Ias
full powcr io nalc iIc forcgoing aclnowlcdgncnis, rcprcscniaiions and agrccncnis on lcIalf of
cacI sucI accouni.

Any resale or other transIer or attempted resale or other transIer, made other than in compliance with above-
stated restrictions shall not be recognized by our Company.


INDIAN SECURITIES MARKET

TIc n{o)muton n tIs sccton Ius Iccn cxt)uctcd {)om puIcu uuuuIc documcnts {)om uu)ous sou)ccs,
ncudng o{{cuu p)cpu)cd mutc)us {)om SEHI, HSE und tIc HSE, und Ius not Iccn p)cpu)cd o)
ndcpcndcntu uc){cd Iu us o) tIc HOOK HUHHIHC LEAD MAHACEH o) unu o{ tIc) )cspcctuc u{{utcs o)
udusc)s.

TKH IQGLDQ SHcuULtLHV MDUkHt

India Ias a long Iisiory of organiscd sccuriiics irading. In 1875, iIc firsi siocl ccIangc was csiallisIcd
in Munlai.

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India's siocl ccIangcs arc rcgulaicd prinarily ly SEDI, a s wcll as ly iIc CoI aciing iIrougI iIc Minisiry
of Financc, Siocl EcIangc Division, undcr iIc Sccuriiics Coniracis (Fcgulaiioni Aci, 1956 (''SCFA''i and
iIc Sccuriiics Coniracis (Fcgulaiioni Fulcs, 1957 (''SCFF''i, wIicI, along wiiI iIc rulcs, lyc-laws and
rcgulaiions of iIc rcspcciivc siocl ccIangcs, rcgulaic iIc rccogniiion of siocl ccIangcs, iIc
qualificaiions for ncnlcrsIip and iIc nanncr in wIicI coniracis arc cnicrcd inio and cnforccd lciwccn
ncnlcrs.

TIc Sccuriiics and EcIangc Doard of India Aci, 1992 granicd powcrs io SEDI io rcgulaic iIc Indian
sccuriiics narlcis, including siocl ccIangcs and oiIcr inicrncdiarics in iIc capiial narlcis, io pronoic
and noniior sclf-rcgulaiory organisaiions, io proIilii fraudulcni and unfair iradc praciiccs and insidcr
irading and io rcgulaic sulsianiial acquisiiions of sIarcs and ialcovcrs of conpanics, io call for
infornaiion, io undcrialc inspcciions and conduci inquirics and audiis of siocl ccIangcs, sclf-rcgulaiory
organisaiions, inicrncdiarics and oiIcr pcrsons associaicd wiiI iIc sccuriiics narlci. SEDI Ias also
issucd guidclincs and rcgulaiions conccrning nininun disclosurc rcquircncnis ly pullic conpanics,
rulcs and rcgulaiions conccrning invcsior proicciion, insidcr irading, sulsianiial acquisiiion of sIarcs and
ialcovcrs of conpanics, luylacl of sccuriiics, dclisiing of sccuriiics, cnploycc siocl opiion scIcncs,
siocllrolcrs, ncrcIani lanlcrs, undcrwriicrs, nuiual funds, forcign insiiiuiional Invcsiors (''FIIs''i, crcdii
raiing agcncics and oiIcr capiial narlci pariicipanis.

TIc Conpanics Aci as ancndcd Ias cnpowcrcd iIc SEDI io adninisicr ccriain provisions of iIc Conpanics
Aci, in so far as iIcy rclaic io issuc and iransfcr of Sccuriiics and non-payncni of dividcnds ly lisicd pullic
conpanics as wcll as conpanics inicnding io lisi iIcir sccuriiics on any rccogniscd siocl ccIangc in India
and io conduci inspcciion of iIc conpanics rccords in rcspcci of naiicrs rclaiing io issuc and iransfcr of
sccuriiics. TIc powcr io prosccuic dcfauliing conpanics wiiI rcspcci io iIc sanc Ias also lccn vcsicd wiiI
SEDI.

SEDI Ias also sci up a conniiicc for iIc rcvicw of Indian sccuriiics laws, wIicI Ias proposcd a drafi
Sccuriiics Dill.

TIc drafi Sccuriiics Dill, if cnacicd in iis prcscni forn nay rcsuli in a sulsianiial rcvision in iIc laws
rclaiing io sccuriiics iransaciions in India. TIc Conpanics Dill 2008 was originally iniroduccd in iIc
FouriccniI Lol SalIa on Ociolcr 23, 2008. Howcvcr, ii Ias lccn rc-iniroduccd in iIc FificcniI Lol SalIa
on Augusi 3, 2009 wiiI ccriain nodificaiions as iIc Conpanics Dill, 2009 and iIc Conpanics Dill, 2008
Ias lapscd duc io iIc dissoluiion of iIc FouriccniI Lol SalIa

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TIc lisiing of sccuriiics on a rccognizcd Indian siocl ccIangc is rcgulaicd ly iIc Conpanics Aci, iIc
SCFA, iIc SCFF, iIc SEDI Aci and various rcgulaiions issucd ly iIc SEDI and iIc Equiiy Lisiing
Agrccncnis of iIc rcspcciivc siocl ccIangcs. Undcr iIc SCFF, iIc govcrning lody of cacI siocl ccIangc
is cnpowcrcd io suspcnd irading of or dcaling in a lisicd sccuriiy for lrcacI of an issucr's olligaiions
undcr sucI cquiiy lisiing agrccncni or for any oiIcr rcason, suljcci io iIc issucr rccciving prior noiicc of


iIc inicni of iIc siocl ccIangc and upon graniing of a Icaring in iIc naiicr. In iIc cvcni iIai a
suspcnsion of a conpany's sccuriiics coniinucs for a pcriod in cccss of iIrcc noniIs, iIc conpany nay
appcal io iIc Sccuriiics Appcllaic Trilunal (iIc SATi csiallisIcd undcr iIc SEDI Aci io sci asidc iIc
suspcnsion. TIc SEDI Ias iIc powcr io vcio siocl ccIangc dccisions in iIis rcgard. TIc SEDI also Ias iIc
powcr io ancnd sucI cquiiy lisiing agrccncnis and iIc ly-laws of iIc siocl ccIangcs in India.

Clausc 49 of iIc Equiiy Lisiing Agrccncni providcs iIai if non-cccuiivc cIairnan of a lisicd conpany is a
pronoicr or is rclaicd io pronoicrs of iIc conpany or pcrsons occupying nanagcncni posiiions ai iIc
loard lcvcl or ai onc lcvcl lclow iIc loard, ai lcasi onc-Ialf of iIc loard of iIc conpany sIould consisi of
indcpcndcni dircciors.

TIc Equiiy Lisiing Agrccncni rcquircs iIai all lisicd conpanics arc rcquircd io cnsurc a nininun lcvcl of
pullic sIarcIolding ai 25% of iIc ioial nunlcr of issucd sIarcs of a class or lind for iIc purposc of
coniinuous lisiing.

TIc cccpiions io iIis rulc arc for conpanics iIai (ii arc offcring or Iavc offcrcd sIarcs io iIc cicni of ai
lcasi 10% of iIc issuc sizc in icrns of Fulc 19(2i(li of iIc SCFF or; (iii Iavc 20 nillion or norc ouisianding
sIarcs; and (iiii Iavc a narlci capiializaiion of Fs.10,000 nillion or norc and iIc nininun pullic
sIarcIolding io lc nainiaincd ly sucI conpanics is 10%. Conscqucnily, a lisicd conpany nay lc dclisicd
fron iIc siocl ccIangcs for noi conplying wiiI iIc alovc-ncniioncd rcquircncni. TIc SEDI Ias,
pursuani io a noiificaiion daicd Junc 10, 2009, noiificd iIc SEDI (Dclisiing of Equiiy SIarcsi Fcgulaiions,
2009 as ancndcd (iIc DHOLVtLQJ RHJuODtLRQVi.

TIc Conpany is suljcci io coniinuing disclosurc rcquircncnis of pullisIing coniraciual financial
siaicncnis on a quaricrly lasis and sinuliancously inforn iIc Siocl EcIangcs of any pullisIcd pricc
scnsiiivc infornaiion. Any non-conpliancc wiiI iIc icrns and condiiions of Lisiing Agrccncni cnicrcd
unio wiiI Siocl EcIangcs nay cniiilc dclisiing of Equiiy SIarcs of iIc Conpany fron all or any siocl
ccIangc on wIicI iIc Equiiy SIarcs arc lisicd.

TIc Dclisiing Fcgulaiions arc applicallc io voluniary or conpulsory dclisiing of cquiiy sIarcs of a lisicd
conpany fron all or any of iIc rccognizcd siocl ccIangcs. Following a conpulsory dclisiing, a conpany,
iis wIolc iinc dircciors, iis pronoicrs and iIc firns pronoicd ly any of iIcn cannoi dirccily or indirccily
acccss iIc sccuriiics narlci or sccl lisiing of any cquiiy sIarcs for a pcriod of icn ycars fron iIc daic of
sucI dclisiing. Conpanics iIai voluniary dclisi, arc noi pcrniiicd io rc-lisi wiiIin fivc ycars fron iIc daic
of sucI dclisiing.

No conpany can apply for pcrnission io dclisi. (ii pursuani io a luy lacl of cquiiy sIarcs or prcfcrcniial
alloincni nadc ly a conpany or (iii unlcss a pcriod of iIrcc ycars Ias clapscd sincc iIc lisiing of iIai
class of cquiiy sIarcs on any rccognizcd siocl ccIangc. FuriIcr, if any insiruncnis issucd ly iIc
conpany wIicI arc convcriillc inio iIc sanc class of cquiiy sIarcs iIai arc sougIi io lc dclisicd, arc
ouisianding, dclisiing is disallowcd.

A conpany nay dclisi iis cquiiy sIarcs fron all or iIc only rccognizcd siocl ccIangc wIcrc ii is lisicd
only if iIc pullic sIarcIoldcrs (wIo arc dcfincd undcr iIc Dclisiing Fcgulaiions io includc iIc Ioldcrs of
cquiiy sIarcs oiIcr iIan iIc pronoicrs', pcrsons aciing in conccri', as sucI icrns arc dcfincd undcr iIc
Talcovcr Codci Iolding cquiiy sIarcs of iIc class wIicI arc sougIi io lc dclisicd arc givcn an cii
opporiuniiy in accordancc wiiI iIc Dclisiing Fcgulaiions. Howcvcr undcr iIc Dclisiing Fcgulaiions, sucI
cii opporiuniiy nccd noi lc givcn io iIc pullic sIarcIoldcrs in cascs wIcrc iIc sccuriiics coniinuc io lc
lisicd on a siocl ccIangc Iaving naiionwidc irading icrninals. Prcscnily, only iIc NSE and iIc DSE Iavc
naiionwidc irading icrninals. WIcn an cii opiion is rcquircd, iIc Dclisiing Fcgulaiions rcquirc a pronoicr
or an acquircr inicnding io dclisi sccuriiics of a conpany io oliain iIc prior approval of iIc loard of
dircciors of sucI conpany and iIc sIarcIoldcrs ly a spccial rcsoluiion, nalc a pullic announccncni in
iIc nanncr providcd for in iIc Dclisiing Fcgulaiions and nalc an in principlc applicaiion io and oliain
final approval of iIc siocl ccIangcs wIcrc ii proposcs io dclisi iis cquiiy sIarcs fron, wiiIin onc ycar of
iIc passing of iIc sIarcIoldcrs rcsoluiion for sucI dclisiing. Howcvcr, iIc spccial rcsoluiion nusi lc acicd


upon if, and only if, iIc voics casi ly iIc pullic sIarcIoldcrs in favour of iIc proposal is ai lcasi iwo iincs
iIc nunlcr of voics ly iIc pullic sIarcIoldcrs againsi ii. A proposcd dclisiing wIcrc no cii opiion is
rcquircd io lc givcn docs noi rcquirc a sIarcIoldcrs rcsoluiion and a rcsoluiion of iIc loard of dircciors is
sufficicni.
TIc pricc of iIc cquiiy sIarcs wIicI arc proposcd io lc icndcrcd arc dcicrnincd iIrougI a 'lool luilding
proccss' undcr iIc Dclisiing Fcgulaiions. TIc floor pricc for dclisiing will lc dcicrnincd ly calculaiing iIc
avcragc of iIc wcclly IigI and low of iIc closing priccs during iIc lasi iwcniy si wccls or iwo wccls
prcccding iIc daic on wIicI iIc rccognizcd siocl ccIangc was noiificd of iIc loard ncciing in wIicI iIc
dclisiing proposal was considcrcd. TIc offcr nusi fulfill iIc criicria prcscrilcd in iIc Dclisiing Fcgulaiions
io lc succcssful. Upon closurc of opcn offcr proccss, all sIarcIoldcrs wIosc cquiiy sIarcs arc vcrificd will
lc paid iIc final pricc siaicd in iIc pullic announccncni wiiIin icn worling days.
As pcr iIc Dclisiing Fcgulaiions, iIc pronoicr will noi lc lound io acccpi iIc cquiiy sIarcs ai iIc offcr
pricc dcicrnincd ly iIc lool luilding proccss. In iIc cvcni iIc pronoicr dccidcs noi io acccpi iIc offcr
pricc so dcicrnincd, (ai iIc pronoicr sIall noi acquirc any cquiiy sIarcs icndcrcd pursuani io iIc offcr
and iIc cquiiy sIarcs dcposiicd or plcdgcd ly a sIarcIoldcr pursuani io paragrapIs 7 or 9 of ScIcdulc II
of iIc Dclisiing Fcgulaiions sIall lc rciurncd or rclcascd io Iin wiiIin icn worling days of closurc of iIc
lidding pcriod; (li iIc conpany sIall noi nalc iIc final applicaiion io iIc rccognizcd siocl ccIangc for
dclisiing of iIc cquiiy sIarcs; (ci iIc pronoicr nay closc iIc cscrow accouni opcncd undcr Fcgulaiion 11
of iIc Dclisiing Fcgulaiions; and, (di in a casc wIcrc iIc pullic sIarcIolding ai iIc opcning of iIc lidding
pcriod was lcss iIan iIc nininun lcvcl of pullic sIarcIolding rcquircd undcr iIc lisiing agrccncni, iIc
pronoicr sIall cnsurc iIai iIc pullic sIarcIolding sIall lc lrougIi up io sucI nininun lcvcl wiiIin a
pcriod of si noniIs fron iIc daic of closurc of iIc lidding iIrougI any of iIc following ways. (ai ly issuc
of ncw sIarcs ly iIc conpany in conpliancc wiiI iIc provisions of iIc Conpanics Aci, and iIc guidclincs
or rcgulaiions of iIc SEDI rclaiing io issuc of sccuriiics and disclosurcs; (li ly iIc pronoicr naling an
offcr for salc of Iis Ioldings in conpliancc wiiI iIc provisions of iIc Conpanics Aci, and iIc guidclincs or
rcgulaiions of iIc SEDI rclaiing io issuc of sccuriiics and disclosurcs; or, (ci ly iIc pronoicr naling salc
of Iis Ioldings iIrougI iIc sccondary narlci in a iransparcni nanncr.
FuriIcr, iIc Minisiry of Financc Ias, on Junc 10, 2009, proposcd ccriain ancndncnis io iIc SCFF (iIc
MRF NRtLILcDtLRQi, in rclaiion io voluniary and conpulsory dclisiing, io lring iIcn in linc wiiI iIc
Dclisiing Fcgulaiions. Undcr iIc MoF noiificaiion a rccognizcd siocl ccIangc Ias iIc powcr io dclisi
sccuriiics of a conpany lisicd on ii on grounds sucI as iIc incurring of losscs ly iIc conpany during iIc
prcccding iIrcc consccuiivc ycars and a ncgaiivc nci woriI, suspcnsion of irading in iIc sccuriiics of iIc
conpany for a pcriod of norc iIan si noniIs and iIc infrcqucni irading of iIc sccuriiics of iIc conpany
during iIc prcccding iIrcc ycars. TIc MoF Noiificaiion sIall lcconc cffcciivc fron iIc daic iIai ii is
pullisIcd in iIc Official Cazciic. Duc io iIcir rcccni issuancc, iIc applicaliliiy of iIc Dclisiing Fcgulaiions
and MoF Noiificaiion Iavc noi lccn icsicd and Icncc ii is possillc iIai sonc of iIc clauscs nay lc
ancndcd io nalc ciiIcr iIc Dclisiing Fcgulaiions or iIc MoF Noiificaiion norc cffcciivc or clarify any
anliguiiics coniaincd iIcrcin. Invcsiors arc also rcqucsicd io consuli iIcir advisors lcforc ialing any
sicps undcr iIc Dclisiing Fcgulaiions.
In ordcr io rcsirici alnornal pricc volaiiliiy in any pariicular siocl, iIc SEDI Ias insirucicd siocl
ccIangcs io apply daily circuii lrcalcrs wIicI do noi allow iransaciions lcyond a ccriain lcvcl of pricc
volaiiliiy. TIc indc-lascd narlci-widc circuii lrcalcr sysicn (cquiiy and cquiiy dcrivaiivcsi applics ai
iIrcc siagcs of iIc indc novcncni, ai 10%, 15% and 20%. TIcsc circuii lrcalcrs, wIcn iriggcrcd, lring
aloui a coordinaicd irading Iali in all cquiiy and cquiiy dcrivaiivc narlcis naiionwidc. TIc narlci-widc
circuii lrcalcrs arc iriggcrcd ly novcncni of ciiIcr iIc NSE's NIFTY or iIc DSE's Scnsc, wIicIcvcr is
lrcacIcd carlicr.
In addiiion io iIc narlci-widc indc-lascd circuii lrcalcrs, iIcrc arc currcnily in placc varying individual
scrip-wisc pricc lands. Howcvcr, no pricc lands arc applicallc on scrips on wIicI dcrivaiivc producis arc
availallc or scrips includcd in indiccs on wIicI dcrivaiivc producis arc availallc.
TIc siocl ccIangcs in India can also ccrcisc iIc powcr io suspcnd irading during pcriods of narlci
volaiiliiy. Margin rcquircncnis arc inposcd ly siocl ccIangcs iIai arc rcquircd io lc paid ly iIc
siocllrolcrs.

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Our Conpany Ias cnicrcd inio lisiing agrccncnis wiiI iIc Siocl EcIangcs for iIc coniinuous lisiing of


our Equiiy SIarcs. A lisicd conpany is suljcci io coniinuing disclosurc rcquircncnis pursuani io iIc
icrns of iis lisiing agrccncni wiiI iIc rclcvani siocl ccIangc, including iIc rcquircncni io pullisI
unaudiicd financial siaicncnis on a quaricrly lasis and io inforn iIc siocl ccIangcs inncdiaicly of all
iIc cvcnis wIicI will Iavc a lcaring on iIc pcrfornancc 1 opcraiions of iIc conpany as wcll as any siocl
pricc-scnsiiivc infornaiion. TIc lisiing agrccncnis also providc iIai wIcncvcr a ialc ovcr offcr is nadc or
iIcrc is any cIangc in iIc conirol of iIc nanagcncni of iIc conpany, iIc pcrson wIo sccurcs iIc conirol
of iIc nanagcncni of iIc conpany and iIc conpany wIosc sIarcs Iavc lccn acquircd sIall conply wiiI
iIc rclcvani provisions of iIc Talcovcr Codc.

IQGHx-BDVHG MDUkHt-WLGH CLUcuLt BUHDkHU SyVtHm
In ordcr io rcsirici alnornal pricc volaiiliiy in any pariicular siocl, iIc SEDI Ias insirucicd siocl
ccIangcs io apply daily circuii lrcalcrs wIicI do noi allow iransaciions lcyond a ccriain lcvcl of pricc
volaiiliiy. TIc indc-lascd narlci-widc circuii lrcalcr sysicn (cquiiy and cquiiy dcrivaiivcsi applics ai
iIrcc siagcs of iIc indc novcncni, ai 10 pcr ccni., 15 pcr ccni. and 20 pcr ccni. TIcsc circuii lrcalcrs,
wIcn iriggcrcd, lring aloui a co-ordinaicd irading Iali in all cquiiy and cquiiy dcrivaiivc narlcis
naiionwidc. TIc narlci-widc circuii lrcalcrs arc iriggcrcd ly novcncni of ciiIcr iIc SENSEX of iIc DSE
or NIFTY of iIc NSE, wIicIcvcr is lrcacIcd carlicr.

In addiiion io iIc narlci-widc indc-lascd circuii lrcalcrs, iIcrc arc currcnily in placc individual scrip-
wisc pricc lands of 20 pcr ccni. novcncnis ciiIcr up or down. Howcvcr, no pricc lands arc applicallc on
scrips on wIicI dcrivaiivc producis arc availallc or scrips includcd in indiccs on wIicI dcrivaiivc producis
arc availallc.

TIc siocl ccIangcs in India can also ccrcisc iIc powcr io suspcnd irading during pcriods of narlci
volaiiliiy.

Margin rcquircncnis arc inposcd ly siocl ccIangcs iIai arc rcquircd io lc paid ly iIc siocllrolcrs.

DLVcORVuUHV uQGHU tKH CRmpDQLHV Act DQG SHcuULtLHV RHJuODtLRQV

Undcr iIc Conpanics Aci, a pullic offcring of sccuriiics in India nusi lc nadc ly ncans of a prospccius,
wIicI nusi coniain infornaiion spccificd in iIc Conpanics Aci and iIc ICDF Fcgulaiions, and lc filcd
wiiI iIc Fcgisirar of Conpanics Iaving jurisdiciion ovcr iIc placc wIcrc a conpany's rcgisicrcd officc is
siiuaicd. A conpany's dircciors and pronoicrs nay lc suljccicd io civil and crininal lialiliiy for
nissiaicncnis in a prospccius. TIc Conpanics Aci, along wiiI rcgulaiions pronulgaicd ly SEDI, also scis
foriI proccdurcs for iIc acccpiancc of sulscripiions and iIc alloincni of sccuriiics anong sulscrilcrs and
csiallisIcs nainun connission raics for iIc salc of sccuriiics. Pursuani io iIc provisions of iIc SEDI
Aci, SEDI Ias issucd dciailcd rcgulaiions conccrning disclosurcs ly pullic conpanics in rcspcci of capiial
issucs. Prior io iIc rcpcal of ccriain rulcs in nid-1992, iIc crsiwIilc Conirollcr of Capiial Issucs of iIc CoI
rcgulaicd iIc priccs ai wIicI conpanics could issuc sccuriiics. TIc ICDF Fcgulaiions pcrnii issucr
conpanics io frccly pricc iIcir issucs of sccuriiics. All conpanics, including pullic liniicd conpanics, arc
rcquircd undcr iIc Conpanics Aci io prcparc, filc wiiI iIc Fcgisirar of Conpanics and circulaic io iIcir
sIarcIoldcrs audiicd annual accounis, wIicI conply wiiI iIc disclosurc rcquircncnis of iIc Conpanics
Aci and rcgulaiions govcrning iIcir nanncr of prcscniaiion, wIicI includc scciions pcriaining io corporaic
govcrnancc and iIc nanagcncni's discussion and analysis. In addiiion, a lisicd conpany is suljcci io
coniinuing disclosurc rcquircncnis pursuani io iIc icrns of iis Equiiy Lisiing Agrccncni wiiI iIc rclcvani
siocl ccIangc, including iIc rcquircncni io pullisI un-audiicd financial siaicncnis on a quaricrly lasis
suljcci io liniicd rcvicw ly iis audiiors, and is rcquircd io inforn siocl ccIangcs inncdiaicly rcgarding
any siocl pricc-scnsiiivc infornaiion.

TIc Conpanics Aci furiIcr rcquircs nandaiory conpliancc wiiI accouniing siandards issucd ly iIc ICAI.
TIc ICAI and iIc SEDI Iavc inplcncnicd cIangcs wIicI rcquirc Indian conpanics io accouni for dcfcrrcd
iaaiion, consolidaic iIcir accounis (sulsidiarics onlyi, and providc scgncni-wisc rcporiing and disclosurc
of rclaicd pariy iransaciions fron April 1, 2001 and accouniing for invcsincnis in affiliaicd conpanics and
joini vcniurcs in consolidaicd accounis fron April 1, 2002.



As on April 1, 2003, accouniing of iniangillc asscis is also rcgulaicd ly accouniing siandards sci ly iIc
ICAI and as on April 1, 2004 accouniing siandards sci ly iIc ICAI will rcgulaic accouniing for inpairncni
of asscis. TIc ICAI Ias rcccnily announccd iIai all lisicd conpanics and pullic inicrcsi cniiiics Iavc io
conply wiiI Inicrnaiional Financial Fcporiing Siandards fron April 1, 2011.

IQGLDQ StRck ExcKDQJHV

TIcrc arc currcnily 19 rccognizcd siocl ccIangcs in India. Mosi of iIc siocl ccIangcs Iavc iIcir own
govcrning loard for sclf rcgulaiion. TIc NSE and iIc DSE iogciIcr Iold a doninani posiiion anong iIc
siocl ccIangcs in icrns of iIc nunlcr of lisicd conpanics, narlci capiializaiion and irading aciiviiy.

NSE
TIc NSE was csiallisIcd ly financial insiiiuiions and lanls io providc naiionwidc, onlinc, saiclliic-linlcd,
scrccn-lascd irading faciliiics for narlci-nalcrs and clccironic clcaring and sciilcncni for sccuriiics
including govcrnncni sccuriiics, dclcniurcs, pullic sccior londs and uniis. TIc NSE was rccognizcd as a
siocl ccIangc undcr iIc SCFA in April 1993 and conncnccd opcraiions in iIc wIolcsalc dcli narlci
scgncni in Junc 1994. TIc capiial narlci (cquiiicsi scgncni conncnccd opcraiions in Novcnlcr 1994
and opcraiions in iIc dcrivaiivcs scgncni conncnccd in Junc 2000. As on Fclruary 28, 2010, iIcrc wcrc
1,461 conpanics lisicd and 1,342 conpanics availallc for irading on iIc NSE, and iIc csiinaicd narlci
capiializaiion of siocls irading on iIc NSE was Fs. 57,553.05 lillion. In Fclruary 2010, iIc avcragc daily
iurnovcr on iIc NSE was Fs. 122.57 lillion.
TIc NSE launcIcd iIc NSE 50 indc, now lnown as S&P CNX Nifiy, on April 22, 1996 and iIc Mid-cap
Indc on January 1, 1996. TIc NSE Ias a widc nciworl in najor nciropoliian ciiics; scrccn lascd irading,
a ccniral noniioring sysicn and grcaicr iransparcncy.

BSE
EsiallisIcd in 1875, ii is iIc oldcsi siocl ccIangc in India. In 1956 ii lccanc iIc firsi siocl ccIangc in
India io oliain pcrnancni rccogniiion fron iIc CoI undcr iIc SCFA. Fcccnily, pursuani io iIc SEDI's iIc
DSE (Corporaiizaiion and Dcnuiualizaiioni ScIcnc, 2005, wiiI cffcci fron Augusi 20, 2005 iIc DSE Ias
lccn corporaiizcd and dcnuiualizcd and is now a conpany undcr iIc Conpanics Aci. TIc DSE swiicIcd
fron an opcn ouicry irading sysicn io an onlinc irading nciworl in May 1995 and Ias ioday cpandcd
iIis nciworl io ovcr 349 ciiics in India. As on Fclruary 28, 2010, iIc DSE Iad 1,014 ncnlcrs, conprising
173 individual ncnlcrs, 818 Indian conpanics and 23 FIIs. Only a ncnlcr of iIc DSE Ias iIc rigIi io
iradc in iIc siocls lisicd on iIc DSE. As on Fclruary 28, 2010, iIcrc wcrc 4,970 lisicd conpanics
(ccluding pcrniiicd conpanicsi and 7,974 scrips lisicd and irading on iIc DSE and iIc csiinaicd narlci
capiializaiion of siocls irading on iIc DSE was Fs. 59,035.14 lillion. In Fclruary 2010, iIc avcragc daily
iurnovcr on iIc DSE was Fs. 41.25 lillion. As on Fclruary 28, 2010, iIc DSE Iad 15,519 iradcr worl
siaiions sprcad ovcr 324 ciiics.

IQtHUQHt-bDVHG SHcuULtLHV TUDGLQJ DQG SHUYLcHV
TIc SEDI approvcd inicrnci irading in January 2000. Inicrnci irading ialcs placc iIrougI ordcr rouiing
sysicns, wIicI rouic clicni ordcrs io ccIangc irading sysicns for cccuiion. Siocllrolcrs inicrcsicd in
providing iIis scrvicc arc rcquircd io apply for pcrnission io iIc rclcvani siocl ccIangc and also Iavc io
conply wiiI ccriain nininun condiiions siipulaicd ly iIc SEDI. TIc NSE lccanc iIc firsi ccIangc io
grani approval io iis ncnlcrs for providing inicrnci-lascd irading scrviccs. Inicrnci irading is possillc on
loiI iIc cquiiics and dcrivaiivcs scgncnis of iIc NSE.

TUDGLQJ HRuUV
Trading on loiI iIc NSE and iIc DSE occurs fron Monday iIrougI Friday, lciwccn 9.00 a.n. and 3.30
p.n. TIc NSE and iIc DSE arc closcd on pullic Iolidays. Pursuani io a circular daicd Ociolcr 23, 2009,
iIc SEDI Ias pcrniiicd all iIc rccognizcd siocl ccIangcs io sci iIcir irading Iours (in iIc casI and
dcrivaiivcs scgncnisi, suljcci io iIc condiiions iIai, iIc irading Iours arc lciwccn 9 a.n. and 5 p.n. and
sucI siocl ccIangc Ias in placc risl nanagcncni sysicn and infrasiruciurc conncnsuraic io iIc
irading Iours.



TUDGLQJ PURcHGuUH
Elccironic irading was iniroduccd in India ly iIc NSE, wIicI dcvclopcd iis iccInology in-Iousc. TIc NSE
iniroduccd for iIc firsi iinc in India, fully auionaicd scrccn lascd irading, wIicI uscs a nodcrn, fully
conpuicrizcd irading sysicn dcsigncd io offcr Invcsiors across iIc lcngiI and lrcadiI of iIc couniry a
safc and casy way io invcsi. TIc NSE irading sysicn callcd iIc Naiional EcIangc for Auionaicd Trading
(iIc NEATi is a fully auionaicd scrccn lascd irading sysicn, wIicI adopis iIc principlc of an ordcr
drivcn narlci. TIc dcrivaiivcs iurnovcr on iIc NSE Ias surpasscd iIc cquiiy narlci iurnovcr. TIc
iurnovcr of dcrivaiivcs on iIc NSE incrcascd fron Fs. 23,654 nillion in 2000-01 io Fs. 110,104,822
nillion in 2008-09.

TIc NSE inprovcd iis worldwidc ranling in iradcd voluncs of fuiurcs and opiions ialcn iogciIcr, fron
15iI in 2006 io 9iI in 2007. TIc iradcd voluncs in iIc dcrivaiivcs scgncni of iIc NSE saw an incrcasc of
95% in 2007 ovcr iIc figurc in 2006.

In ordcr io faciliiaic snooiI iransaciions, in 1995, iIc DSE rcplaccd iis opcn ouicry sysicn wiiI iIc DSE
On-linc Trading (iIc BOLTi faciliiy in 1995. TIis ioially auionaicd scrccn lascd irading in sccuriiics was
pui inio praciicc naiion-widc. TIis Ias cnIanccd iransparcncy in dcalings and Ias assisicd considcrally
in snooiIcning sciilcncni cyclcs and inproving cfficicncy in lacl-officc worl.

Mu)Ict Vdc C)cut H)cuIc)s. In ordcr io rcsirici alnornal pricc volaiiliiy in any pariicular siocl, SEDI Ias
insirucicd siocl ccIangcs io apply daily circuii lrcalcrs, wIicI do noi allow iransaciions lcyond ccriain
pricc volaiiliiy. An indc lascd narlci-widc (cquiiy and cquiiy dcrivaiivcsi circuii lrcalcr sysicn Ias lccn
inplcncnicd and iIc circuii lrcalcrs arc applicd io iIc narlci for novcncni ly 10%, 15% and 20% for
iwo prcscrilcd narlci indiccs. iIc DSE Scnsc for iIc DSE and iIc Nifiy for iIc NSE, or iIc NSE Nifiy,
wIicIcvcr is lrcacIcd carlicr. If any of iIcsc circuii lrcalcr iIrcsIolds arc rcacIcd, irading in al1 cquiiy
and cquiiy dcrivaiivcs narlcis naiionwidc will lc Ialicd.

P)cc Hunds. Pricc lands arc circuii filicrs of 20% novcncnis ciiIcr up or down, and arc applicd io nosi
sccuriiics iradcd in iIc narlcis, ccluding sccuriiics includcd in iIc DSE Scnsc and iIc NSE Nifiy and
dcrivaiivcs producis. In addiiion io iIc narlci-widc indc lascd circuii lrcalcrs, iIcrc arc currcnily in
placc varying individual scrip wisc lands (cccpi for scrips on wIicI dcrivaiivc producis arc availallc or
scrips includcd in indiccs on wIicI dcrivaiivc producis arc availallci of 20% ciiIcr ways for all oiIcr
scrips.

Circuii-lrcalcrs arc noi applicallc io ccriain siocls lisicd in iIc A" caicgory of DSE, on wIicI siocls,
fuiurcs and opiions arc iradcd. TIc siocl ccIangcs of India can also ccrcisc iIc powcr io suspcnd
irading during pcriods of narlci volaiiliiy. Margin rcquircncnis arc inposcd ly siocl ccIangcs iIai arc
rcquircd io lc paid ly siocllrolcrs. Ai iIc discrciion of iIc siocl ccIangcs and undcr insiruciions fron
SEDI, iIc siocl ccIangcs can also inposc ad Ioc nargins on iIc siocllrolcrs, for spccific siocls in iIc
cvcni of circnc volaiiliiy in pricc novcncnis.

SHttOHmHQt
WiiI cffcci fron Dcccnlcr 31, 2001, irading in all sccuriiics lisicd in iIc DSE's cquiiy scgncni ialcs placc
in onc narlci scgncni, lnown as iIc Conpulsory Folling Sciilcncni Scgncni.
WiiI cffcci fron April 1, 2003, in accordancc wiiI iIc SEDI dircciivcs, siocl ccIangcs in India opcraic on
a irading day plus 2, or T+2 rolling sciilcncni sysicn. T+2 sciilcncni rcquircs iIai a iransaciion is sciilcd
on iIc sccond lusincss day following iIc rclcvani iradc daic. TIc SEDI Ias proposcd io novc io a T+1
sciilcncni sysicn.

StRck MDUkHt IQGLcHV
TIcrc is an array of indiccs of siocl priccs on iIc NSE. TIc popular indiccs arc iIc S&P CNX Nifiy, CNX
Nifiy Junior, S&P CNX Dcfiy, S&P CNX 500, CNX Midcap and CNX 100. TIc following iwo indiccs arc
gcncrally uscd in iracling iIc aggrcgaic pricc novcncnis on iIc DSE.



(ai TIc DSE Scnsiiivc Indc, or Scnsc, consisis of lisicd sIarcs of 30 largc narlci capiializaiion
conpanics. TIc conpanics arc sclccicd on iIc lasis of narlci capiializaiion, liquidiiy and indusiry
rcprcscniaiion. Scnsc was firsi conpilcd in 1986 wiiI iIc Fiscal ycar cndcd MarcI 31, 1979 as iis lasc
ycar. TIis is iIc nosi connonly uscd indc in India.

(li TIc DSE 100 Indc (forncrly iIc DSE Naiional Indci coniains lisicd sIarcs of 100 conpanics including
iIc 30 in Scnsc. TIc DSE 100 Indc was iniroduccd in January 1989 wiiI iIc Fiscal ycar cndcd MarcI
31, 1984 as iis lasc ycar.

TDkHRYHU CRGH

Disclosurc and nandaiory lid olligaiions for lisicd Indian conpanics undcr Indian law arc govcrncd ly
iIc Talcovcr Codc, wIicI prcscrilcs ccriain iIrcsIolds or iriggcr poinis iIai givc risc io iIcsc olligaiions.
TIc Talcovcr Codc is undcr consiani rcvicw ly iIc SEDI and was lasi ancndcd on Novcnlcr 6, 2009.
Sincc our Conpany is an Indian lisicd conpany, iIc provisions of iIc Talcovcr Codc apply io our
Conpany.
TIc salicni fcaiurcs of iIc Talcovcr Codc arc as follows.
TIc icrn sIarcs" is dcfincd undcr iIc Talcovcr Codc io ncan cquiiy sIarcs or any oiIcr sccuriiy, wIicI
cniiilcs a pcrson io rcccivc sIarcs wiiI voiing rigIis lui docs noi includc prcfcrcncc sIarcs.

Any acquircr (ncaning a pcrson wIo, dirccily or indirccily, acquircs or agrccs io acquirc sIarcs or voiing
rigIis in a conpany, or acquircs or agrccs io acquirc conirol ovcr a conpany, ciiIcr ly Iinsclf or wiiI any
pcrson aciing in conccri wiiI Iini wIo acquircs sIarcs or voiing rigIis iIai would cniiilc Iin io norc
iIan 5%, 10%, 14%, 54% or 74% of iIc sIarcs or voiing rigIis in a conpany is rcquircd io disclosc iIc
aggrcgaic of Iis sIarcIolding or voiing rigIis in iIai conpany io iIc conpany and io cacI of iIc siocl
ccIangcs on wIicI iIc conpany's sIarcs arc lisicd ai cvcry sucI siagc wiiIin iwo days of (ii iIc rcccipi of
iniinaiion of alloincni of sIarcs or (iii iIc acquisiiion of sIarcs or voiing rigIis, as iIc casc nay lc. SucI
conpany in iurn is also rcquircd io disclosc iIc sanc io iIc siocl ccIangcs on wIicI iIc conpany's
sIarcs arc lisicd.

A pcrson wIo Iolds norc iIan 15% of iIc sIarcs or voiing rigIis in any conpany is rcquircd io nalc an
annual disclosurc of Iis Ioldings io iIai conpany wiiIin 21 days of iIc financial ycar cnding on MarcI 31
(wIicI in iurn is rcquircd io disclosc iIc sanc io cacI of iIc siocl ccIangcs on wIicI iIai conpany's
sIarcs arc lisicdi. FuriIcr, sucI pcrson wIo Iolds 15% or norc lui lcss iIan 55% of iIc sIarcs or voiing
rigIis in any conpany is rcquircd io disclosc any purcIasc or salc of sIarcs aggrcgaiing io 2% of iIc sIarc
capiial of a conpany along wiiI iIc aggrcgaic sIarcIolding aficr sucI acquisiiion or salc, io iIai conpany
(wIicI in iurn is rcquircd io disclosc iIc sanc io cacI of iIc siocl ccIangcs on wIicI iIc conpany's
sIarcs arc lisicdi and io cacI of iIc siocl ccIangcs on wIicI iIc sIarcs of iIc conpany arc lisicd wiiIin
iwo days of (ii iIc rcccipi of iniinaiion of iIc alloincni of sIarcs or (iii iIc acquisiiion of sIarcs or voiing
rigIis, as iIc casc nay lc.

Pronoicrs or pcrsons in conirol of a conpany arc also rcquircd io nalc pcriodic disclosurc of iIcir
Ioldings or iIc voiing rigIis Icld ly iIcn along wiiI pcrsons aciing in conccri, in iIc sanc nanncr as
alovc, annually wiiIin 21 days of iIc cnd of cacI financial ycar, as wcll as fron iIc rccord daic for
cniiilcncni of dividcnds. TIc conpany is also rcquircd io disclosc iIc Ioldings of iis pronoicrs or pcrsons
in conirol as on MarcI 31 of iIc rcspcciivc ycar and on iIc rccord daic ficd for iIc dcclaraiion of
dividcnds io cacI of iIc siocl ccIangcs on wIicI iis cquiiy sIarcs arc lisicd. In addiiion, pronoicrs or
pcrsons forning pari of iIc pronoicr group of iIc conpany arc also rcquircd io disclosc io iIc conpany
iIc dciails of iIc sIarcs of iIc conpany plcdgcd ly iIcn wiiIin scvcn days of iIc crcaiion, or invocaiion,
of iIc plcdgc, as iIc casc nay lc. TIc conpany is, in iurn, rcquircd io disclosc iIc infornaiion io iIc
siocl ccIangcs wiiIin scvcn days of rcccipi of sucI infornaiion, if during any quaricr cnding MarcI,
Junc, Scpicnlcr and Dcccnlcr of any ycar. (ii iIc aggrcgaic nunlcr of plcdgcd sIarcs ialcn iogciIcr wiiI
iIc sIarcs alrcady plcdgcd during iIai quaricr ccccds 25,000, or (iii iIc aggrcgaic ioial plcdgcd sIarcs
ialcn iogciIcr wiiI iIc sIarcs alrcady plcdgcd during iIai quaricr ccccds 1% of iIc ioial sIarcIolding or
voiing rigIis of iIc conpany, wIicIcvcr is lowcr.



An acquircr wIo, iogciIcr wiiI pcrsons aciing in conccri wiiI Iin, acquircs or agrccs io acquirc 15% or
norc (ialcn iogciIcr wiiI cisiing cquiiy sIarcs or voiing rigIis, if any, Icld ly ii or ly pcrsons aciing in
conccri wiiI iii of iIc sIarcs or voiing rigIis of a conpany would lc rcquircd io nalc a pullic
announccncni offcring io acquirc a furiIcr nininun of 20% of iIc sIarcs of iIc conpany ai a pricc noi
lowcr iIan iIc pricc dcicrnincd in accordancc wiiI iIc Talcovcr Codc. SucI offcr Ias io lc nadc io all
pullic sIarcIoldcrs of a conpany (pullic sIarcIolding is dcfincd as sIarcIolding Icld ly pcrsons oiIcr
iIan iIc pronoicrsi and wiiIin four worling days of cnicring inio an agrccncni for iIc acquisiiion of or of
iIc dccision io acquirc sIarcs or voiing rigIis wIicI ccccd 15% or norc of iIc voiing rigIis in a conpany.
A copy of iIc pullic announccncni is rcquircd io lc dclivcrcd on iIc daic on wIicI sucI announccncni is
pullisIcd io iIc SEDI, iIc conpany and iIc siocl ccIangcs on wIicI a conpany's cquiiy sIarcs arc
lisicd.

TIc SEDI nay, on an applicaiion nadc ly a iargci conpany, rcla any or norc of iIc provisions of iIc
Talcovcr Codc, suljcci io sucI condiiions as ii nay dccn fii, if ii is saiisficd iIai (ai iIc ccniral
govcrnncni or siaic govcrnncni or any oiIcr rcgulaiory auiIoriiy Ias rcnovcd iIc loard of dircciors of
iIc iargci conpany and Ias appoinicd oiIcr pcrsons io Iold officc as dircciors iIcrcof undcr any law for
iIc iinc lcing in forcc for ordcrly conduci of iIc affairs of iIc iargci conpany; (li sucI dircciors Iavc
dcviscd a plan wIicI providcs for iransparcni, opcn, and conpciiiivc proccss for coniinucd opcraiion of
iIc iargci conpany in iIc inicrcsis of all sialcIoldcrs in iIc iargci conpany and sucI plan docs noi
furiIcr iIc inicrcsis of any pariicular acquircr; (ci iIc condiiions and rcquircncnis of iIc conpciiiivc
proccss arc rcasonallc and fair; (di iIc proccss providcs for dciails including iIc iinc wIcn iIc pullic offcr
would lc nadc, conplcicd and iIc nanncr in wIicI iIc cIangc in conirol would lc cffccicd; (ci iIc
provisions arc lilcly io aci as inpcdincni io inplcncniaiion of iIc plan of iIc iargci conpany and
rclaaiion fron onc or norc of sucI provisions is in pullic inicrcsi, iIc inicrcsi of Invcsiors and iIc
sccuriiics narlci.

An acquircr wIo, iogciIcr wiiI pcrsons aciing in conccri wiiI Iin, if any, Iolds 55% or norc lui lcss iIan
75% of iIc sIarcs or voiing rigIis (or, wIcrc iIc conpany conccrncd oliaincd iIc iniiial lisiing of iis
sIarcs ly naling an offcr of ai lcasi 10% of iIc issuc sizc io iIc pullic pursuani io Fulc 19(2i(li of iIc
SCF Fulcs, lcss iIan 90% of iIc sIarcs or voiing rigIis in iIc conpanyi in a conpany cannoi acquirc
addiiional sIarcs cniiiling Iin io ccrcisc voiing rigIis or voiing rigIis unlcss sucI acquircr nalcs a
pullic announccncni offcring io acquirc a furiIcr nininun of 20% of iIc sIarcs of iIc conpany ai a pricc
noi lowcr iIan iIc pricc dcicrnincd in accordancc wiiI iIc Talcovcr Codc.

Howcvcr, an acquircr nay acquirc, iogciIcr wiiI pcrsons aciing in conccri wiiI Iin, addiiional sIarcs or
voiing rigIis iIai would cniiilc Iin io ccrcisc up io 5% voiing rigIis in iIc conpany, wiiIoui naling a
pullic announccncni as aforcsaid if (ii iIc acquisiiion is nadc iIrougI opcn narlci purcIasc in nornal
scgncni on iIc siocl ccIangc lui noi iIrougI lull1llocl dcal1ncgoiiaicd dcal1prcfcrcniial alloincni, or
iIc incrcasc in iIc sIarcIolding or voiing rigIis of iIc acquircr is pursuani io a luylacl of sIarcs ly iIc
conpany; and (iii iIc posi acquisiiion sIarcIolding of iIc acquircr iogciIcr wiiI pcrsons aciing in conccri
wiiI Iin sIall noi incrcasc lcyond 75%.

WIcrc an acquircr wIo (iogciIcr wiiI pcrsons aciing in conccrii Iolds 55% or norc, lui lcss iIan 75% of
iIc sIarcs or voiing rigIis (or, wIcrc iIc conpany conccrncd oliaincd iniiial lisiing of iis sIarcs ly
naling an offcr of ai lcasi 10% of iIc issuc sizc io iIc pullic pursuani io Fulc 19(2i(li of iIc SCF Fulcs,
lcss iIan 90% of iIc sIarcs or voiing rigIisi in iIc conpany, inicnds io consolidaic iis Ioldings wIilc
cnsuring iIai iIc pullic sIarcIolding in iIc iargci conpany docs noi fall lclow iIc nininun lcvcl
pcrniiicd ly iIc Equiiy Lisiing Agrccncni wiiI iIc siocl ccIangcs, iIc acquircr nay do so only iIrougI
an opcn offcr undcr iIc Talcovcr Codc. SucI opcn offcr would lc rcquircd io lc nadc for iIc lcsscr of (ii
20% of iIc voiing capiial of iIc conpany, or (iii sucI oiIcr lcsscr pcrccniagc of iIc voiing capiial of iIc
conpany as would, assuning full sulscripiion io iIc opcn offcr, cnallc iIc acquircr (iogciIcr wiiI pcrsons
aciing in conccrii, io incrcasc iIc Iolding io iIc nainun lcvcl possillc, i.c. up io iIc dclisiing iIrcsIold
(75% or 90%, as iIc casc nay lci.



In addiiion, rcgardlcss of wIciIcr iIcrc Ias lccn any acquisiiion of sIarcs or voiing rigIis in a conpany,
an acquircr cannoi dirccily or indirccily acquirc conirol ovcr a conpany (for canplc, ly way of acquiring
iIc rigIi io appoini a najoriiy of iIc dircciors or io conirol iIc nanagcncni or iIc policy dccisions of iIc
conpanyi unlcss sucI acquircr nalcs a pullic announccncni offcring io acquirc a nininun of 20% of iIc
sIarcs of iIc conpany. In addiiion, iIc Talcovcr Codc iniroduccs iIc cIain principlc' ly wIicI iIc
acquisiiion of a Iolding conpany will olligaic iIc acquircr io nalc a pullic offcr io iIc sIarcIoldcrs of
cacI of iis sulsidiary conpanics wIciIcr lisicd or noi, wIciIcr in India or alroad. Howcvcr, iIc pullic
announccncni rcquircncni will noi apply io any cIangc in conirol wIicI ialcs placc pursuani io a spccial
rcsoluiion passcd ly way of posial lalloi ly sIarcIoldcrs. TIc Talcovcr Codc scis oui iIc conicnis of iIc
rcquircd pullic announccncnis as wcll as iIc nininun offcr pricc. TIc nininun offcr pricc dcpcnds on
wIciIcr iIc sIarcs of iIc conpany arc frcqucnily' or infrcqucnily' iradcd (as dcfincd in iIc Talcovcr
Codci. In iIc casc of sIarcs wIicI arc frcqucnily iradcd, iIc nininun offcr pricc sIall lc iIc IigIcsi of.

(ai iIc ncgoiiaicd pricc undcr iIc agrccncni for iIc acquisiiion of sIarcs or voiing rigIis in iIc conpany;
(li iIc IigIcsi pricc paid ly iIc acquircr or pcrsons aciing in conccri wiiI Iin1Icr for any acquisiiions,
including iIrougI an alloincni in a pullic, prcfcrcniial or rigIis issuc, during iIc 26-wccl pcriod prior io
iIc daic of iIc pullic announccncni; or
(ci iIc avcragc of iIc wcclly IigI and low of iIc closing priccs of iIc sIarcs of iIc conpany as quoicd on
iIc siocl ccIangc wIcrc iIc sIarcs of iIc conpany arc nosi frcqucnily iradcd during iIc 26-wccl pcriod
prior io iIc daic of iIc pullic announccncni or iIc avcragc of iIc daily IigI and low of iIc priccs of iIc
sIarcs as quoicd on iIc siocl ccIangc wIcrc iIc sIarcs of iIc conpany arc nosi frcqucnily iradcd
during iIc iwo-wccl pcriod prior io iIc daic of iIc pullic announccncni, wIicIcvcr is IigIcr.

TIc opcn offcr for iIc acquisiiion of a furiIcr nininun of 20% of iIc sIarcs of a conpany Ias io lc nadc
ly way of a pullic announccncni wIicI is io lc nadc wiiIin four worling days of cnicring inio an
agrccncni for iIc acquisiiion or iIc dccision io acquirc sIarcs or voiing rigIis ccccding iIc rclcvani
pcrccniagcs or wiiIin four worling days aficr iIc dccision io nalc any sucI cIangc(si is nadc wIicI
would rcsuli in acquisiiion of conirol.

TIc Talcovcr Codc providcs iIai an acquircr wIo sccls io acquirc any sIarcs or voiing rigIis wIicI would
rcsuli in iIc pullic sIarcIolding in iIc iargci conpany lcing rcduccd io a lcvcl lclow iIc linii spccificd in
iIc Equiiy Lisiing Agrccncni wiiI iIc siocl ccIangc for iIc purposc of lisiing on a coniinuous lasis,
sIall ialc iIc ncccssary sicps io faciliiaic iIc conpliancc ly iIc conpany wiiI iIc rclcvani provisions of
sucI Equiiy Lisiing Agrccncni, wiiIin iIc iinc pcriod ncniioncd iIcrcin. FuriIcr, iIc Talcovcr Codc
coniains pcnaliics for iIc violaiion of any provisions.


TIc Talcovcr Codc pcrniis condiiional offcrs and providcs spccific guidclincs for iIc gradual acquisiiion of
sIarcs or voiing rigIis. Spccific olligaiions of iIc acquircr and iIc loard of dircciors of iIc iargci conpany
in iIc offcr proccss Iavc also lccn sci oui.

Acquircrs naling a pullic offcr arc also rcquircd io dcposii a pcrccniagc of iIc ioial considcraiion for sucI
offcr in an cscrow accouni. TIis anouni will lc forfciicd in iIc cvcni iIai iIc acquircr docs noi fulfill
Iis1Icr olligaiions.

TIc pullic offcr provisions of iIc Talcovcr Codc (suljcci io ccriain spccificd condiiionsi, do noi apply,
anong oiIcr iIings, io ccriain spccificd acquisiiions, including iIc acquisiiion of sIarcs (ii ly alloincni in
a pullic and rigIis issuc suljcci io iIc fulfillncni of ccriain condiiions, (iii pursuani io an undcrwriiing
agrccncni, (iiii ly rcgisicrcd siocllrolcrs in iIc ordinary coursc of lusincss on lcIalf of clicnis, (ivi in
unlisicd conpanics (unlcss sucI acquisiiion rcsulis in an indircci acquisiiion of sIarcs in cccss of 15% in
a lisicd conpanyi, (vi pursuani io a scIcnc of arrangcncni or rcconsiruciion including an analganaiion
or dcncrgcr, undcr any law or rcgulaiion of India or any oiIcr couniry, (vii pursuani io a scIcnc undcr
Scciion 18 of iIc SICA, (viii rcsuliing fron iransfcrs lciwccn conpanics lclonging io iIc sanc group of
conpanics or lciwccn pronoicrs of a pullicly lisicd conpany and iIcir rclaiivcs, providcd iIc rclcvani
condiiions arc conplicd wiiI, (viiii iIrougI inIcriiancc on succcssion, (ii rcsuliing fron iransfcrs ly


Indian vcniurc capiial funds or forcign vcniurc capiial Invcsiors rcgisicrcd wiiI iIc SEDI, io iIcir
rcspcciivc pronoicrs or io oiIcr vcniurc capiial undcrialings, (i ly conpanics conirollcd ly iIc CoI
unlcss sucI acquisiiion is nadc pursuani io a disinvcsincni proccss undcrialcn ly iIc Indian
Covcrnncni or a siaic govcrnncni, (ii pursuani io a cIangc in conirol ly iIc ialcovcr1rcsioraiion of iIc
nanagcncni of a lorrowcr conpany ly a sccurcd crcdiior undcr iIc icrns of iIc Sccuriiisaiion and
Fcconsiruciion of Financial Asscis and Enforccncni of Sccuriiy Inicrcsi Aci, 2002, (iii ly acquisiiion of
sIarcs ly a pcrson in ccIangc for cquiiy sIarcs rcccivcd undcr a pullic offcr nadc undcr iIc Talcovcr
Codc, and (iiii in icrns of guidclincs and rcgulaiions rclaiing io dclisiing of sccuriiics as spccificd ly iIc
SEDI. TIc Talcovcr Codc docs noi apply io acquisiiions in iIc ordinary coursc of lusincss ly pullic
financial insiiiuiions, ciiIcr on iIcir own accouni or as a plcdgcc. An applicaiion nay also lc filcd wiiI iIc
SEDI sccling ccnpiion fron iIc rcquircncnis of iIc Talcovcr Codc.

FuriIcr, on Novcnlcr 6, 2009, iIc SEDI ancndcd iIc Talcovcr Codc, as follows. (ii wIcrc iIc Ioldcrs of
any Ancrican Dcposiiory Fcccipis (ADFsi and Clolal Dcposiiory Fcccipis (CDFsi lcconc cniiilcd io
ccrcisc voiing rigIis on iIc sIarcs undcrlying sucI ADFs1CDFs or ccIangc sucI ADFs1CDFs wiiI iIc
undcrlying sIarcs carrying voiing rigIis, opcn offcr olligaiions sIall lc iriggcrcd upon crossing iIc
iIrcsIold liniis sci oui in Fcgulaiion 10 io 12 undcr CIapicr III of iIc Talcovcr Codc and pullic
announccncni (as prcscrilcd undcr iIc Talcovcr Codci will lc rcquircd io lc nadc wiiIin four days of
acquisiiion of sucI dcposiiory rcccipis; (iii undcr Fcgulaiion 7(1Ai of iIc Talcovcr Codc, disclosurcs on
acquisiiion or divcsincni of 2% or norc of iIc sIarc capiial of a iargci conpany for acquircrs Iolding
sIarcs1voiing rigIis lciwccn 15-75% sIall lc rcquircd and (iiii undcr Fcgulaiion 11(1i of iIc Talcovcr
Codc, iIc crccping acquisiiion of up io 5% of iIc voiing rigIis would lc pcrniiicd wiiIoui iriggcring iIc
olligaiion of a pullic announccncni suljcci io iIc condiiion iIai posi-acquisiiion, iIc
sIarcIolding1voiing rigIis of iIc acquircr ciiIcr ly Iinsclf or iogciIcr wiiI pcrsons aciing in conccri wiiI
Iin, sIall noi incrcasc lcyond 55%. Howcvcr, sucI acquisiiion up io 55% undcr Fcgulaiion 11(1i of iIc
Talcovcr Codc sIall noi lc a lar on furiIcr acquisiiion of up io 5% of iIc voiing rigIis as cnvisagcd undcr
iIc sccond proviso io Fcgulaiion 11(2i of iIc Talcovcr Codc wIicI providcs, ntc) uu, iIai iIc posi
acquisiiion sIarcIolding of iIc acquircr iogciIcr wiiI pcrsons aciing in conccri wiiI Iin sIall noi incrcasc
lcyond 75%.

IQVLGHU TUDGLQJ RHJuODtLRQV

TIc SEDI (ProIiliiion of Insidcr Tradingi Fcgulaiions, 1992 (iIc 'IQVLGHU TUDGLQJ RHJuODtLRQV'i Iavc lccn
noiificd ly iIc SEDI io proIilii and pcnalizc insidcr irading in India. TIc Insidcr Trading Fcgulaiions
proIilii an 'insidcr' fron dcaling, ciiIcr on Iis own lcIalf or on lcIalf of any oiIcr pcrson, in iIc
sccuriiics of a conpany lisicd on any siocl ccIangcs wIcn in posscssion of unpullisIcd pricc-scnsiiivc
infornaiion. TIc icrns insidcr and unpullisIcd pricc-scnsiiivc infornaiion' arc dcfincd in iIc Insidcr
Trading Fcgulaiions. TIc insidcr is also proIiliicd fron connunicaiing, counscling or procuring, dirccily
or indirccily, any unpullisIcd pricc-scnsiiivc infornaiion io any oiIcr pcrson wIo wIilc in posscssion of
sucI unpullisIcd pricc-scnsiiivc infornaiion is proIiliicd fron dcaling in sccuriiics. TIc proIiliiion
undcr iIc Insidcr Trading Fcgulaiions cicnds io all pcrsons, including a conpany dcaling in iIc sccuriiics
of a conpany lisicd on any siocl ccIangc or associaic of iIai oiIcr conpany, wIilc in iIc posscssion of
unpullisIcd pricc-scnsiiivc infornaiion. Pursuani io ancndncnis io iIc Insidcr Trading Fcgulaiions, iIc
dcfiniiion of iIc icrn insidcr Ias lccn lroadcncd io includc any pcrson wIo Ias rcccivcd or Ias Iad
acccss io unpullisIcd pricc scnsiiivc infornaiion of iIc conpany.
On a coniinuous lasis any pcrson wIo Iolds norc iIan 5% of iIc sIarcs or voiing rigIis in any lisicd
conpany is rcquircd io disclosc io iIc conpany iIc nunlcr of sIarcs or voiing rigIis Icld ly sucI pcrson
and cIangc in sIarcIolding or voiing rigIis (cvcn if sucI cIangc rcsulis in iIc sIarcIolding falling lclow
5%i and any sucI cIangc in sucI Iolding sincc lasi disclosurc nadc, wIcrc sucI cIangc ccccds 2% of
iIc ioial sIarcIolding or voiing rigIis in iIc conpany. SucI disclosurc is rcquircd io lc nadc wiiIin iwo
worling days of ciiIcr. (ii iIc rcccipi of iniinaiion of alloincni of sIarcs; or (iii iIc acquisiiion or salc of
sIarcs or voiing rigIis, as iIc casc nay lc.

FuriIcr, all dircciors and officcrs of a lisicd conpany arc rcquircd io disclosc io iIc conpany iIc nunlcr
of sIarcs or voiing rigIis Icld and posiiions ialcn dcrivaiivcs ly sucI pcrson in sucI conpany wiiIin iwo


worling days of lcconing a dirccior or officcr of sucI conpany. All dircciors and officcrs of a lisicd
conpany arc also rcquircd io nalc pcriodic disclosurcs of iIcir sIarcIolding in iIc conpany as spccificd
in iIc Insidcr Trading Fcgulaiions.

TIc Insidcr Trading Fcgulaiions nalc ii conpulsory for lisicd conpanics and ccriain oiIcr cniiiics
associaicd wiiI iIc sccuriiics narlci io csiallisI an inicrnal codc of conduci io prcvcni insidcr irading
dcals and also io rcgulaic disclosurc of unpullisIcd pricc-scnsiiivc infornaiion wiiIin sucI cniiiics so as
io nininizc nisusc of sucI infornaiion. To iIis cnd, iIc Insidcr Trading Fcgulaiions providc a nodcl codc
of conduci. TIc Insidcr Trading Fcgulaiions rcquirc iIai iIc nodcl codc of conduci sIould noi lc diluicd
in any nanncr and sIall lc conplicd wiiI. TIc nodcl codc of conduci Ias also lccn ancndcd io proIilii
all dircciors1 officcrs1 dcsignaicd cnployccs wIo luy or scll any nunlcr of sIarcs of iIc conpany fron
cnicring inio opposiic iransaciions during iIc nci si noniIs following iIc prior iransaciion. All dircciors
and dcsignaicd cnployccs Iavc also lccn proIiliicd fron ialing posiiions in dcrivaiivc iransaciions in
sIarcs of iIc conpany ai any iinc. FuriIcr, ccriain provisions pcriaining io, anong oiIcr iIings, rcporiing
rcquircncnis Iavc also lccn cicndcd io dcpcndanis of dircciors and dcsignaicd cnployccs of iIc
conpany.

DHpRVLtRULHV

In Augusi 1996, iIc Indian Parliancni cnacicd iIc Dcposiiorics Aci, 1996 (including rulcs and rcgulaiions
iIcrcundcr, iIc DHpRVLtRULHV Acti, wIicI providcs a lcgal francworl for iIc csiallisIncni of dcposiiorics io
rccord owncrsIip dciails and cffcci iransfcrs in lool-cniry forn. TIc SEDI francd iIc Sccuriiics and EcIangc
Doard of India (Dcposiiorics and Pariicipanisi Fcgulaiions, 1996 wIicI providc anong oiIcr iIings, for iIc
fornaiion of sucI dcposiiorics, iIc rcgisiraiion of pariicipanis as wcll as iIc rigIis and olligaiions of iIc
dcposiiorics, pariicipanis, conpanics and lcncficial owncrs. TIc dcposiiory sysicn Ias significanily inprovcd
iIc opcraiion of iIc Indian sccuriiics narlcis. TIc Dcposiiorics Aci rcquircs iIai cvcry pcrson sulscriling io
sccuriiics offcrcd ly an issucr Ias iIc opiion ciiIcr io rcccivc iIc sccuriiy ccriificaic or Iold iIc sccuriiics wiiI a
dcposiiory. TIc Naiional Sccuriiics Dcposiiory Liniicd and iIc Ccniral Dcposiiory Scrviccs (Indiai Liniicd arc
iwo dcposiiorics iIai providc clccironic dcposiiory faciliiics for iIc irading of cquiiy and dcli sccuriiics in India.
Trading of sccuriiics in lool-cniry forn conncnccd in Dcccnlcr 1996. In ordcr io cncouragc dcnaicrializaiion'
of sccuriiics, iIc SEDI Ias sci up a worling group on dcnaicrializaiion of sccuriiics conprising forcign
insiiiuiional Invcsiors, cusiodians, siocl ccIangcs, nuiual funds and iIc NSDL io rcvicw iIc progrcss of
sccuriiics and irading in dcnaicrializcd forn and io rcconncnd scrips for conpulsory, dcnaicrializcd irading in
a pIascd nanncr. In January 1998, iIc SEDI noiificd scrips of various conpanics for conpulsory dcnaicrializcd
irading ly ccriain caicgorics of Invcsiors sucI as forcign insiiiuiional Invcsiors and oiIcr insiiiuiional Invcsiors
and Ias also noiificd conpulsory dcnaicrializcd irading in spccificd scrips for all rciail Invcsiors. TIc SEDI Ias
sulscqucnily significanily incrcascd iIc nunlcr of scrips in wIicI dcnaicrializcd irading is conpulsory for all
Invcsiors. TIc SEDI Ias also providcd iIai iIc issuc and alloincni of sIarcs in pullic offcrs, rigIis offcrs or
offcrs for salc aficr spccificd daics io lc noiificd fron iinc io iinc ly iIc SEDI sIall only lc in dcnaicrializcd
forn and an invcsior sIall lc conpulsorily rcquircd io opcn a dcposiiory accouni wiiI a pariicipani. Undcr iIc
Dcposiiorics Aci, a conpany sIall givc iIc opiion io sulscrilcrs1sIarcIoldcrs io rcccivc iIc sccuriiy ccriificaics
or Iold sccuriiics in dcnaicrializcd forn wiiI a dcposiiory. Howcvcr, cvcn in iIc casc of scrips noiificd for
conpulsory dcnaicrializcd irading, Invcsiors, oiIcr iIan insiiiuiional Invcsiors, arc pcrniiicd io iradc in
pIysical sIarcs on iransaciions ouisidc iIc siocl ccIangc wIcrc iIcrc arc no rcquircncnis for rcporiing sucI
iransaciions io iIc siocl ccIangc and on iransaciions on iIc siocl ccIangc involving lois of lcss iIan 500
sccuriiics. Transfcrs of sIarcs in lool-cniry forn rcquirc loiI iIc scllcr and iIc purcIascr of iIc cquiiy sIarcs
io csiallisI accounis wiiI dcposiiory pariicipanis rcgisicrcd wiiI iIc dcposiiorics csiallisIcd undcr iIc
Dcposiiorics Aci. CIargcs for opcning an accouni wiiI a dcposiiory pariicipani, iransaciion cIargcs for cacI
iradc and cusiodian cIargcs for sccuriiics Icld in cacI accouni vary dcpcnding upon iIc praciicc of cacI
dcposiiory pariicipani and Iavc io lc lornc ly iIc accouniIoldcr. Upon dclivcry, iIc sIarcs sIall lc rcgisicrcd
in iIc nanc of iIc rclcvani dcposiiory on iIc conpany's lools and iIis dcposiiory sIall cnicr iIc nanc of iIc
invcsior in iis rccords as iIc lcncficial owncr. TIc iransfcr of lcncficial owncrsIip sIall lc cffccicd iIrougI iIc
rccords of iIc dcposiiory. TIc lcncficial owncr sIall lc cniiilcd io all rigIis and lcncfiis and lc suljcci io all
lialiliiics in rcspcci of Iis1Icr sccuriiics Icld ly a dcposiiory.
TIc Conpanics Aci providcs iIai Indian conpanics naling any iniiial pullic offcring of sccuriiics for, or in
cccss of, Fs. 100 nillion sIould issuc iIc sccuriiics in dcnaicrializcd forn in accordancc wiiI iIc provisions of
iIc Dcposiiorics Aci.



DHULYDtLYHV (FutuUHV DQG OptLRQV)

Trading in dcrivaiivcs is govcrncd ly iIc SCFA, iIc SCFF and iIc SEDI Aci. TIc SCFA was ancndcd in
Fclruary 2000 io includc dcrivaiivc coniracis wiiIin iIc icrn sccuriiics" as dcfincd ly iIc SCFA. Trading in
dcrivaiivcs in India ialcs placc ciiIcr on scparaic and indcpcndcni dcrivaiivcs ccIangcs or on a scparaic
scgncni of an cisiing siocl ccIangc. TIc dcrivaiivc ccIangc or dcrivaiivc scgncni of a siocl ccIangc
funciions as a sclf rcgulaiory organizaiion undcr iIc supcrvision of iIc SEDI. Dcrivaiivcs producis wcrc
iniroduccd in pIascs in India, siariing wiiI fuiurcs coniracis in Junc 2000 and indc opiions, siocl opiions and
siocl fuiurcs in Junc 2000, July 2001 and Novcnlcr 2001, rcspcciivcly.

SEDI, ai iis loard ncciing Icld on MarcI 6, 2010, Ias ialcn an in-principal dccision io allow Indian siocl
ccIangcs io iniroducc cquiiy dcrivaiivcs coniracis wiiI icnurc of fivc ycars, dcrivaiivc coniracis on volaiiliiy
indiccs wiiI a suiiallc iracl rccord and iIc pIysical sciilcncni of dcrivaiivcs.



DESCRIPTION OF SHARES

Sct {o)tI Icou s cc)tun n{o)muton )cutng to ou) sIu)c cuptu, ncudng u I)c{ summu)u o{ somc o{ tIc
p)ousons o{ ou) Mcmo)undum und A)tccs o{ Assocuton, tIc Sccu)tcs Cont)ucts Hcguutons) Act, l95b (us
umcndcd) (tIc SCRA), tIc Compuncs Act und cc)tun )cutcd cgsuton o{ Indu, u us cu))cntu n c{{cct..

GHQHUDO
TIc auiIorizcd sIarc capiial of iIc Conpany is Fs.50,00,00,000 (Fupccs Fifiy Crorcsi dividcd inio
5,00,00,000 Equiiy SIarcs of Fs.101- (Fupccs icni cacI.

AUtLcOHV RI AVVRcLDtLRQ
Wc arc govcrncd ly our Ariiclcs of Associaiion. Our Ariiclcs of Associaiion wcrc lasi ancndcd on
30.07.2008. TIis ancndncni rclaicd io an incrcasc in our auiIoriscd sIarc capiial. Tallc A of iIc
Conpanics Aci is noi applicallc io iIc Conpany.

DLYLGHQG

Undcr iIc Conpanics Aci, unlcss iIc loard of dircciors of a conpany rcconncnd iIc payncni of a
dividcnd, iIc sIarcIoldcrs ai a gcncral ncciing Iavc no powcr io dcclarc any dividcnd. TIc sIarcIoldcrs
ai a gcncral ncciing nay dcclarc a lowcr, lui noi IigIcr, dividcnd iIan iIai rcconncndcd ly iIc loard of
dircciors. Dividcnds arc gcncrally dcclarcd as a pcrccniagc of iIc par valuc. TIc dividcnd rcconncndcd ly
our Doard and approvcd ly our sIarcIoldcrs ai a gcncral ncciing is disiriluicd and paid io sIarcIoldcrs
in proporiion io iIc paid-up valuc of iIcir Equiiy SIarcs on iIc rccord daic or lool closurc daic for wIicI
sucI dividcnd is payallc. In addiiion, as is pcrniiicd ly our Ariiclcs of Associaiion, our Doard nay
announcc and pay inicrin dividcnds. Undcr iIc Conpanics Aci, dividcnds can only lc paid in casI io
sIarcIoldcrs lisicd on iIc rcgisicr of sIarcIoldcrs on iIc daic wIicI is spccificd as iIc lool closurc daic"
or in iIc casc of sIarcIoldcrs lccping iIcir sIarcs in dcnaicrialiscd forn, wIosc nancs arc cnicrcd as
lcncficial owncrs in iIc rccords of a dcposiiory, sucI as iIc NSDL and CDSL on iIc rccord daic". No
sIarcIoldcr is cniiilcd io a dividcnd wIilc any licn in rcspcci of unpaid calls on any of Iis sIarcs is
ouisianding. Undcr our Ariiclcs of Associaiion, any unpaid calls on any Equiiy SIarcs nay lc adjusicd oui
of iIc dividcnd payallc io a sIarcIoldcr. For dciails of dividcnd payncnis nadc ly iIc Conpany, scc
scciion Dividcnd and Dividcnd Policy".

Wc sIall dcposii any dividcnd wc dcclarc in a scparaic lanl accouni wiiIin fivc days fron iIc daic of
dcclaraiion of sucI dividcnd. Dividcnds nusi lc paid wiiIin 30 days fron iIc daic of iIc dcclaraiion and
any dividcnd wIicI rcnains unpaid or unclaincd aficr iIai pcriod nusi lc iransfcrrcd wiiIin scvcn days
io a spccial unpaid dividcnd accouni Icld ai a scIcdulcd lanl. Wc nusi iransfcr any noncy wIicI
rcnains unpaid or unclaincd for scvcn ycars fron iIc daic of sucI iransfcr io iIc Invcsior Educaiion and
Proicciion Fund csiallisIcd ly iIc Covcrnncni pursuani io wIicI no clain sIall lic againsi us or iIc said
Fund.

Undcr iIc Conpanics Aci, wc nay pay a dividcnd in cccss of 10% of paid-up capiial in rcspcci of any ycar
oui of iIc profiis of iIai ycar only aficr wc Iavc iransfcrrcd io rcscrvcs a pcrccniagc of our profiis for iIai
ycar ranging lciwccn 2.5% io 10% dcpcnding on iIc raic of dividcnd proposcd io lc dcclarcd in iIai ycar.
TIc Conpanics Aci furiIcr providcs iIai if iIc profii for a ycar is insufficicni, iIc dividcnd for iIai ycar
nay lc dcclarcd oui of iIc accunulaicd profiis carncd in prcvious ycars and iransfcrrcd io rcscrvcs,
suljcci io iIc following condiiions.
ii iIc raic of dividcnd io lc dcclarcd nay noi ccccd iIc lcsscr of iIc avcragc of iIc raics ai wIicI
dividcnds wcrc dcclarcd in iIc fivc ycars inncdiaicly prcccding iIc ycar, or 10% of paid-up capiial,
wIicIcvcr is lowcr;
iii iIc ioial anouni io lc drawn fron iIc accunulaicd profiis fron prcvious ycars and iransfcrrcd io iIc
rcscrvcs, nay noi ccccd an anouni cquivalcni io onc icniI of iIc paid-up capiial and frcc rcscrvcs, and
iIc anouni so drawn is firsi io lc uscd io sci off iIc losscs incurrcd in iIc financial ycar lcforc any
dividcnds in rcspcci of prcfcrcncc or cquiiy sIarcs; and
(iiii iIc lalancc of rcscrvcs aficr wiiIdrawals nusi noi lc lclow 15% of paid-up capiial



CDpLtDOLzDtLRQ RI RHVHUYHV/PURILtV
Our Ariiclcs of Associaiion pcrnii us ly a rcsoluiion of our sIarcIoldcrs in a gcncral ncciing io rcsolvc in
ccriain circunsianccs iIai ccriain anounis sianding io iIc crcdii of ccriain rcscrvcs or sccuriiics
prcniun can lc capiialiscd ly iIc issuc of fully paid lonus sIarcs or ly crcdiiing sIarcs noi fully paid-up
wiiI iIc wIolc or pari of any sun ouisianding. Donus sIarcs nusi lc issucd pro raia io iIc anouni of
capiial paid-up on cisiing sIarcIoldings.

Any issuc of lonus sIarcs would lc suljcci io iIc guidclincs issucd ly iIc SEDI in iIis rcgard. TIc
rclcvani SEDI guidclincs prcscrilc iIai no conpany sIall, pcnding convcrsion of convcriillc sccuriiics,
issuc any sIarcs ly way of lonus unlcss sinilar lcncfii is cicndcd io iIc Ioldcrs of sucI convcriillc
sccuriiics, iIrougI rcscrvaiion of sIarcs in proporiion io sucI convcrsion. TIc lonus issuc sIall lc nadc
oui of frcc rcscrvcs luili oui of iIc gcnuinc profiis or sIarc prcniun collccicd in casI only. TIc lonus
issuc cannoi lc nadc unlcss iIc sIarcs in rcspcci of wIicI iIc lonus issuc is nadc arc fully paid-up. In
addiiion, for lcing allc io issuc sucI lonus sIarcs, a conpany sIould noi Iavc dcfaulicd in iIc payncni
of inicrcsi or principal in rcspcci of ficd dcposiis and inicrcsi on cisiing dclcniurcs or principal on
rcdcnpiion of sucI dclcniurcs. A Conpany nay noi dcclarc lonus sIarcs in licu of dividcnd. In ordcr io
procccd wiiI iIc issuc of lonus sIarcs, a conpany sIould Iavc sufficicni rcason io lclicvc iIai ii Ias noi
dcfaulicd in rcspcci of iIc payncni of siaiuiory ducs of iIc cnployccs sucI as coniriluiion io providcni
fund, graiuiiy and lonus. TIc issuancc of lonus sIarcs nusi lc inplcncnicd wiiIin siiy days fron iIc
daic of approval ly iIc Doard or iIc sIarcIoldcrs, wIicIcvcr is laicr. Fcccni ancndncnis also pcrnii an
Indian conpany io issuc lonus sIarcs io iis non-rcsidcni sIarcIoldcrs, suljcci io iIc saiisfaciion of
ccriain condiiions.

PUH-EmptLYH RLJKtV DQG AOtHUDtLRQ RI CDpLtDO

TIc Conpanics Aci and our Ariiclcs givc iIc sIarcIoldcrs iIc prccnpiivc rigIi io sulscrilc for ncw sIarcs
in proporiion io iIcir rcspcciivc cisiing sIarcIoldings, unlcss iIc sIarcIoldcrs clcci oiIcrwisc ly a
spccial rcsoluiion or wIcrc a sinplc najoriiy of sIarcIoldcrs prcscni and voiing Iavc passcd iIc
rcsoluiion and iIc pcrnission of iIc CoI Ias lccn oliaincd. TIc offcr nusi includc. (ai iIc rigIi,
ccrcisallc ly iIc sIarcIoldcrs on rccord, io rcnouncc iIc sIarcs offcrcd in favour of any pcrson; and (li
iIc nunlcr of sIarcs offcrcd and iIc pcriod of iIc offcr, wIicI nay noi lc lcss iIan 15 days fron iIc daic
of offcr. If iIc offcr is noi acccpicd, ii is dccncd io Iavc lccn dcclincd. TIc loard of dircciors is auiIorizcd
io disiriluic any ncw sIarcs noi purcIascd ly iIc prc-cnpiivc rigIis Ioldcrs in iIc nanncr iIai ii dccns
nosi lcncficial io iIc conpany.

Our Ariiclcs providc iIai our Conpany nay fron iinc io iinc, ly ordinary rcsoluiion.

ii Consolidaic and dividc all or any of iis sIarc capiial inio sIarcs of largcr anouni iIan iIc cisiing
sIarcs;
iii Convcri all or any fully paid up sIarcs inio siocl and rcconvcri iIai siocl inio fully paid up sIarcs of
any dcnoninaiion;
iiii Sul-dividc all or any of iis sIarcs inio sIarcs of snallcr anouni iIan is ficd ly our Mcnorandun so,
Iowcvcr, iIai in iIc sul-division iIc proporiion lciwccn iIc anouni paid and any anouni unpaid on cacI
rcduccd sIarc sIall lc iIc sanc as ii was in iIc casc of sIarcs fron wIicI iIc rcduccd sIarcs arc dcrivcd;
and
ivi Canccl sIarcs wIicI, ai iIc daic of passing of iIc rcsoluiion in iIai lcIalf, Iavc noi lccn ialcn or
agrccd io lc ialcn ly any pcrson and dininisI iIc anouni of iis sIarc capiial ly iIc anouni of sIarcs so
canccllcd.

IVVuH RI IuUtKHU VKDUHV

(1i WIcrc ai iIc iinc aficr iIc cpiry of iwo ycars fron iIc fornaiion of iIc conpany or ai any iinc
aficr iIc cpiry of onc ycar fron iIc alloincni of sIarcs in iIc Conpany nadc for iIc firsi iinc aficr
iis fornaiion, wIicIcvcr is carlicr, ii is proposcd io incrcasc iIc sulscrilcd capiial of iIc Conpany


ly alloincni of furiIcr sIarcs wIciIcr oui of iIc unissucd capiial or oui of iIc incrcascd sIarc
capiial iIcn .
(ai SucI furiIcr sIarcs sIall lc offcrcd io pcrsons wIo ai iIc daic of iIc offcr, arc Ioldcrs of iIc
cquiiy sIarcs of iIc Conpany, in proporiion, as ncar as circunsianccs adnii, io iIc capiial paid
up on iIosc sIarcs ai iIc daic.

(li SucI offcr sIall lc nadc ly a noiicc spccifying iIc nunlcr of sIarcs offcrcd and liniiing a iinc
noi lcss iIan iIiriy days fron iIc daic of iIc offcr and iIc offcr if noi acccpicd, will lc dccncd io
Iavc lccn dcclincd.

(ci TIc offcr aforcsaid sIall lc dccncd io includc a rigIi ccrcisallc ly iIc pcrson conccrncd io
rcnouncc iIc sIarcs offcrcd io iIcn in favour of any oiIcr pcrson and iIc noiicc rcfcrrcd io in
sulclausc (li Icrcof sIall coniain a siaicncni of iIis rigIi. PFOVIDED THAT iIc Dircciors nay
dcclinc, wiiIoui assigning any rcason io alloi any sIarcs io any pcrson in wIosc favour any
ncnlcr nay rcnouncc iIc sIarcs offcrcd io Iin.

(di Aficr cpiry of iIc iinc spccificd in iIc aforcsaid noiicc or on rcccipi of carlicr iniinaiion fron
iIc pcrson io wIon sucI noiicc is givcn iIai Ic dcclincs io acccpi iIc sIarcs offcrcd, iIc Doard
of Dircciors, nay disposc off iIcn in sucI nanncr and io sucI pcrson(si as iIcy nay iIinl, in
iIcir solc discrciion, fii.

(2i NoiwiiIsianding anyiIing coniaincd in sul-clausc (1i Icrcof, iIc furiIcr sIarcs aforcsaid nay lc
offcrcd io any pcrson(si (wIciIcr or noi iIosc pcrsons includc iIc pcrsons rcfcrrcd io in clausc (ai of
sul-clausc (1i Icrcofi in any nanncr wIaisocvcr.

(ai If a spccial rcsoluiion io iIai cffcci is passcd ly iIc Conpany in Ccncral Mcciing, or
(li WIcrc no sucI spccial rcsoluiion is passcd, if iIc voics casi (wIciIcr on a sIow of Iands or on a
poll as iIc casc nay lci in favour of iIc proposal coniaincd in iIc rcsoluiion novcd in iIc
Ccncral
Mcciing (including iIc casiing voic, if any, of iIc CIairnani ly iIc ncnlcrs wIo, lcing cniiilcd
io do so, voic in pcrson, or wIcrc proics arc allowcd, ly proy, ccccd iIc voics, if any, casi
againsi iIc proposal ly ncnlcrs, so cniiilcd and voiing and iIc Ccniral Covcrnncni is saiisficd,
on an applicaiion nadc ly iIc Doard of Dircciors in iIis lcIalf, iIai iIc proposal is nosi
lcncficial io iIc Conpany

(3i NoiIing in sul-clausc (ci of clausc (11i Icrcof sIall lc dccncd;

(ai To cicnd iIc iinc wiiIin wIicI iIc offcr sIould lc acccpicd; or
(li To auiIorizc any pcrson io ccrcisc iIc rigIi of rcnunciaiion for a sccond iinc on iIc ground iIai
iIc pcrson in wIosc favour iIc rcnunciaiion was firsi nadc Ias dcclincd io ialc iIc sIarcs
conpriscd in iIc rcnunciaiion.
(4i NoiIing in iIis Ariiclc sIall apply io iIc incrcasc of iIc sulscrilcd capiial of iIc conpany causcd ly
iIc ccrcisc of an opiion aiiacIcd io iIc dclcniurc issucd or loans raiscd ly iIc Conpany.
(ii To convcri sucI dclcniurcs or loans inio sIarcs in Conpany; or
(iii To sulscrilc for sIarcs in iIc Conpany (wIciIcr sucI opiion is confcrrcd in iIcsc Ariiclcs or
oiIcrwisci.

PFOVIDED THAT iIc icrns of issuc of sucI dclcniurcs or iIc icrns of sucI loans includc a icrn
providing for sucI opiion and sucI icrn .

(ai EiiIcr Ias lccn approvcd ly iIc Ccniral Covcrnncni lcforc iIc issuc of iIc dclcniurcs or iIc
raising of iIc loans or is in conforniiy wiiI iIc Fulcs, if any, nadc ly iIai Covcrnncni in iIis
lcIalf; and
(li In iIc casc of dclcniurcs or loans or oiIcr iIan dclcniurcs issucd io or loans oliaincd fron
Covcrnncni or any insiiiuiion spccificd ly iIc Ccniral Covcrnncni in iIis lcIalf, Ias also lccn


approvcd ly a spccial rcsoluiion passcd ly iIc Conpany in Ccncral Mcciing lcforc iIc issuc of iIc
dclcniurcs or raising of iIc loans.

GHQHUDO MHHtLQJV RI SKDUHKROGHUV
TIc Siaiuiory Mcciing of iIc Conpany sIall as rcquircd ly scciion 165 of iIc Aci, lc Icld ai noi carlicr
iIan onc noniI and noi laicr iIan si noniIs fron iIc daic ai wIicI iIc conpany sIall lc cniiilcd io
conncncc lusincss and ai sucI iinc and placcs as nay lc dcicrnincd ly iIc loard and iIc Doard sIall
conply wiiI oiIcr rcquircncnis of iIai Scciion as io iIc rcpori io lc sulniiicd and oiIcrwisc.
In accordancc wiiI Scciion 166(1i and suljcci io Scciions 166(2i and 210 of iIc Conpanics Aci, a
conpany nusi Iold iis annual gcncral ncciing cacI ycar wiiIin 15 noniIs fron iIc daic of iIc lasi
annual gcncral ncciing, or wiiIin si noniIs aficr iIc cnd of iIc accouniing ycar, wIicIcvcr is carlicr,
unlcss cicndcd ly iIc Fcgisirar of Conpanics ai iIc rcqucsi of iIc conpany for any spccial rcason.
Any oiIcr ncciing of iIc Conpany sIall, lc callcd an Eiraordinary Ccncral Mcciing. TIc Doard nay,
wIcncvcr ii iIinls fii, call an Eiraordinary Ccncral Mcciing and an Eiraordinary Ccncral Mcciing sIall
also lc rcquisiiioncd or in dcfauli nay lc callcd ly sucI rcquisiiionisis as providcd ly Scciion 169 of iIc
Conpanics Aci. Our Ariiclcs providc iIai quorun for a gcncral ncciing of iIc sIarcIoldcrs of our
Conpany, sIall lc fivc sIarcIoldcrs prcscni in pcrson. If iIc quorun is noi prcscni wiiIin Ialf an Iour of
iIc scIcdulcd iinc for Iolding of iIc gcncral ncciing, iIc ncciing, convcncd upon rcquisiiion of ncnlcrs
sIall lc dissolvcd, lui in any oiIcr casc ii sIall siand adjourncd io iIc nci worling day and rcconvcncd
ai iIc sanc iinc of iIc day and placc and if ai sucI adjourncd ncciing, quorun of ncnlcrs is noi prcscni
iIcn iIosc ncnlcrs prcscni sIall consiiiuic a quorun and iIcy nay iransaci iIc lusincss for wIicI iIc
ncciing was callcd. Ai iIc daic of iIc dcposii of iIc rcquisiiion, noi lcss iIan onc- icniI of sucI of iIc
paid up capiial of iIc Conpany as ai iIai daic carricd iIc rigIi of voiing in rcgard io iIc naiicr io lc
considcrcd ai iIc ncciing foriIwiiI procccd io call an Eiraordinary Ccncral Mcciing and sucI rcquisiiion
sIall lc suljcci io iIc following provisions

1. TIc rcquisiiion sIall siaic iIc naiicrs for iIc considcraiion of wIicI iIc ncciings is io lc callcd,
sIall lc signcd ly iIc rcquisiiionisis and sIall lc dcposiicd ai iIc officc. TIc rcquisiiion nay consisi
of scvcral docuncnis in lilc forn cacI signcd ly onc norc rcquisiiionisis.
2. WIcrc iwo or norc disiinci naiicrs arc spccificd in iIc rcquisiiion, iIc rcquisiiion sIall lc valid only
in rcspcci of iIosc naiicrs in rcgard io wIicI iIc rcquisiiion Ias lccn signcd ly iIc ncnlcr or
ncnlcrs Icrcinlcforc spccificd.
3. If iIc Doard docs noi wiiIin iwcniy-onc days fron iIc daic of dcposii of a valid rcquisiiion in rcgard
io any naiicrs,. procccd duly io call a ncciing for iIc considcraiion of iIcsc naiicrs on a day noi
laicr iIan foriy-fivc days fron iIc daic of dcposii, iIc rcquisiiionisis or sucI of iIcn as arc cnallc
so io do ly viriuc of Scciion 169(6i of iIc Aci nay iIcnsclvcs call iIc ncciing lui any ncciing so
callcd sIall noi lc conncnccd aficr iIrcc noniIs fron iIc daic of dcposii of sucI rcquisiiion.
4. Any ncciing callcd undcr iIis Ariiclc ly iIc rcquisiiionisis sIall lc callcd in iIc sanc nanncr as
carly as possillc as iIai in wIicI ncciing arc io lc callcd ly iIc Doard lui sIall lc Icld ai iIc
officc,
5. WIcrc iwo or norc pcrsons Iold any sIarcs joinily a rcquisiiion or noiicc calling a ncciing signcd ly
onc or norc of iIcn sIall for iIc purposcs of iIis Ariiclc Iavc iIc sanc forcc and cffcci as if ii ad
lccn signcd y all of iIcn.
6. Any rcasonallc cpcnscs incurrcd ly iIc rcquisiiions ly rcason of iIc failurc of iIc Doard duly io
call a ncciing sIall lc rcpaid io iIc rcquisiiionisis ly iIc Conpany and of any sun so rcpaid sIall
lc rciaincd ly iIc Conpany oui of any suns duc or io lcconc duc io iIc Conpany ly way of fccs or
oiIcr rcnuncraiion for iIcir scrviccs io sucI of iIc Dircciors as arc in dcfauli.

Wriiicn noiiccs convcning a ncciing sciiing oui iIc daic, placc and agcnda of iIc ncciing nusi lc givcn io
ncnlcrs ai lcasi 21 days prior io iIc daic of iIc proposcd ncciing in accordancc wiiI Scciion 171 of iIc
Conpanics Aci. A docuncni nay lc scrvcd ly iIc conpany on any ncnlcr iIcrcof and iIc noiicc of cvcry
ncciing of iIc conpany sIall lc givcn io cvcry ncnlcr in any nanncr auiIorizcd ly and as providcd in
Scciions 53 and 172 of iIc Conpanics Aci.



PURcHHGLQJV Dt GHQHUDO mHHtLQJV
TIc ordinary lusincss of an annual Ccncral Mcciing sIall lc io rcccivc and considcr iIc. profii and loss
accouni, iIc Dalancc SIcci and Fcporis of iIc Dircciors and Audiiors, io dcclarc dividcnd, io appoini
Dircciors in iIc placc of iIosc rciiring ly roiaiion, and io appoini Audiiors and fi iIcir rcnuncraiion. All
oiIcr lusincss iransacicd ai an annual gcncral ncciing and all lusincss iransacicd ai any oiIcr gcncral
ncciing sIall lc dccncd spccial lusincss. No lusincss sIall lc iransacicd ai any gcncral ncciing unlcss a
quorun of ncnlcrs is prcscni ai iIc iinc wIcn iIc ncciing procccds io lusincss. Savc as Icrcin
oiIcrwisc providcd fivc ncnlcrs prcscni in pcrson sIall lc a quorun.

If wiiIin Ialf-an-Iour fron iIc iinc appoinicd for iIc ncciing a quorun lc noi prcscni, iIc ncciing, if
convcncd upon sucI rcquisiiion as aforcsaid, sIall lc dissolvcd ; lui in any oiIcr casc ii sIall siand
adjourncd io iIc sanc day in iIc nci wccl, ai iIc sanc iinc and placc or io sucI oiIcr day and ai sucI
iinc placc as iIc Doard nay ly noiicc appoini and if ai sucI adjourncd ncciing a quorun lc noi prcscni,
iIosc ncnlcrs wIo arc prcscni and noi lcing lcss iIan iwo sIall lc a quorun and nay iransaci iIc
lusincss for wIicI iIc ncciing was callcd.
Any aci or rcsoluiion, wIicI undcr iIc provisions of iIcsc ariiclcs or of iIc Aci is pcrniiicd or rcquircd io
lc donc or passcd ly Conpany in gcncral ncciing sIall lc sufficicnily so donc or passcd if cffccicd ly an
ordinary rcsoluiion as dcfincd Ariiclcs spccifically rcquirc sucI aci io lc donc or rcsoluiion as dcfincd in
Scciion 189(2i of iIc Aci.
Evcry Dirccior of iIc conpany sIall Iavc iIc rigIi io aiicnd ai any, gcncral ncciing of iIc Conpany and
also io ialc pari in iIc discussion iIcrcai cvcn if Ic 'nay noi Iold any sIarcs in iIc capiial of iIc
Conpany.
TIc CIairnan of iIc Doard sIall lc cniiilcd io ialc iIc cIair ai cvcry gcncral ncciing. If iIcrc lc no sucI
CIairnan, or if ai any ncciing Ic sIall noi lc prcscni wiiIin fificcn ninuics aficr iIc iinc appoinicd for
Iolding sucI ncciing, or is unwilling io aci iIc ncnlcrs prcscni sIall cIoosc anoiIcr Dirccior as
CIairnan, and if no Dirccior lc prcscni, or if all iIc Dirccior dcclinc io ialc iIc cIair iIcn iIc ncnlcrs
prcscni sIall, on a sIow of Iands or on a poll if propcrly dcnandcd, clcci onc of iIcir nunlcrs, lcing a
ncnlcr cniiilcd io voic, io lc CIairnan.
Evcry qucsiion sulniiicd io a ncciing sIall lc dccidcd, in iIc firsi insiancc ly a sIow of Iands, unlcss a
poll is (lcforc or on dcclaraiion of iIc rcsuli of iIc sIow of Iandsi dcnandcd ly ai lcasi fivc Mcnlcrs
Iaving iIc rigIi io voic on iIc rcsoluiion and prcscni in pcrson or ly proy, or ly iIc CIairnan of iIc
ncciing or ly any Mcnlcr or Mcnlcrs Iolding noi lcss onc icniI of ioial voiing powcr in rcspcci of iIc
rcsoluiion or ly any Mcnlcr or Mcnlcrs prcscni in pcrson or ly proy and Iolding sIarcs in iIc
Conpany confcrring a rigIi io voic on rcsoluiion lcing sIarcs on wIicI an aggrcgaic sun Ias lccn paid-
up wIicI is noi lcss iIan onc-icniI of iIc ioial sun paid-up or all iIc sIarcs confcrring iIai rigIi and
unlcss a poll is dcnandcd, a dcclaraiion ly iIc CIairnan iIai a rcsoluiion Ias, on a sIow of Iands, lccn
carricd or carricd unaninously, or ly a pariicular najoriiy or losi, and an cniry io iIai cffcci in iIc Minuic
Dool of iIc Conpany sIall lc conclusivc cvidcncc of iIc faci, wiiIoui proof of iIc nunlcr or proporiion of
iIc voics rccordcd in favour of or againsi iIai rcsoluiion and in iIc casc of an cqualiiy of voics, loiI on a
sIow of Iands and on a poll, iIc CIairnan of iIc ncciing sIall Iavc a casiing voic in addiiion io iIc voic
io wIicI Ic nay lc cniiilcd as a ncnlcr.
Ai any gcncral ncciing, unlcss a poll is (lcforc or on iIc dcclaraiion of iIc rcsuli of iIc sIow of Iandsi
dcnandcd in accordancc wiiI provisions of Scciion 179 of iIc Aci, a dcclaraiion ly iIc CIairnan iIai iIc
rcsoluiion Ias or Ias noi lccn carricd ciiIcr unaninously, or ly a pariicular najoriiy, and an cniry io iIai
cffcci in iIc lool coniaining iIc ninuics of iIc procccdings of iIc Conpany sIall lc conclusivc cvidcncc of
iIc faci, wiiIoui proof io iIc nunlcr of iIc voics casi in favour of, or againsi iIc rcsoluiion.
(1i If a poll lc dcnandcd as aforcsaid ii sIall lc ialcn foriIwiiI on a qucsiion of adjournncni or clcciion
of a CIairnan and in any oiIcr casc in sucI nanncr and ai sucI iinc, noi lcing laicr iIan foriy-cigIi
Iours fron iIc iinc wIcn iIc dcnand was nadc, and ai sucI placc as iIc CIairnan of iIc ncciing


dirccis, and suljcci as aforcsaid, ciiIcr ai oncc or aficr an inicrval or adjournncni of oiIcrwisc and iIc
rcsuli of iIc poll sIall lc dccncd io lc iIc dccision of iIc ncciing on iIc rcsoluiion on wIicI iIc poll was
dcnandcd.
(2i TIc dcnand of a poll nay lc wiiIdrawn ai any iinc.
(3i WIcrc a poll is io lc ialcn iIc CIairnan of iIc ncciing sIall appoini iwo scruiinccrs, onc ai lcasi of
wIon sIall lc a ncnlcr (noi lcing an officcr or cnploycc of iIc conpanyi prcscni ai iIc ncciing providcd
sucI a ncnlcr is availallc and willing io lc appoinicd, io scruiinisc iIc voics givcn on iIc poll and io
rcpori io Iin iIcrcon.
(4i On a poll a ncnlcr cniiilcd io norc iIan onc voic, or Iis proy or oiIcr pcrson cniiilcd io voic for Iin
as iIc casc nay lc, nccd noi, if Ic voics, usc all Iis voics or casi in iIc sanc way all iIc voics Ic uscs.
(5i TIc dcnand of a poll sIall noi prcvcni iIc coniinuancc of a ncciing for iIc iransaciion of any lusincss
oiIcr iIan iIc qucsiion on wIicI a poll Ias lccn dcnandcd.
TIc CIairnan of a gcncral ncciing nay wiiI iIc conscni of iIc ncciing ai wIicI a quorun is prcscni and
sIall, if so dirccicd ly iIc ncciing adjourn iIc sanc fron iinc io iinc and fron placc io placc, lui no
lusincss sIall lc iransacicd ai any adjourncd ncciing oiIcr iIan iIc lusincss lcfi unfinisIcd ai iIc
ncciing fron wIicI iIc adjournncni iool placc.
WIcn a ncciing is adjourncd for iIiriy days or norc, noiicc of iIc adjourncd ncciing sIall lc givcn in iIc
sanc nanncr as in iIc casc of an original ncciing and savc as aforcsaid ii sIall noi lc ncccssary io givc
any noiicc of an adjournncni or of iIc lusincss io lc iransacicd ai an adjourncd ncciing.
VRtLQJ RLJKtV
Suljcci io iIc provisions of iIc Conpanics Aci and our Ariiclcs, voics nay lc givcn ciiIcr pcrsonally or ly
proy, and in iIc casc of a lody corporaic, a duly auiIorizcd rcprcscniaiivc undcr Scciion 187 of iIc
Conpanics Aci sIall lc cniiilcd io ccrcisc iIc sanc powcrs on lcIalf of iIc corporaiion as if ii wcrc an
individual ncnlcr of iIc conpany. On a sIow of Iands, cvcry ncnlcr Iolding cquiiy sIarcs and prcscni
in pcrson sIall Iavc onc voic. On a poll, cvcry ncnlcr Iolding cquiiy sIarcs iIcrcin sIall Iavc voiing
rigIis in proporiion io Iis sIarc of iIc paid-up cquiiy sIarc capiial and sucI a ncnlcr Iolding norc iIan
onc voic nccd noi usc all Iis voics in iIc sanc way. In iIc casc of joini Ioldcrs, anyonc of sucI pcrsons
nay voic ai any ncciing ciiIcr pcrsonally or ly Iis proy in rcspcci of sucI sIarc as if Ic wcrc solcly
cniiilcd iIcrcio; and if norc iIan onc of sucI joini Ioldcrs lc prcscni ai any ncciing, iIai iIc voic of iIc
firsi nancd pcrson of sucI joini Ioldcrs in iIc rcgisicr of ncnlcrs, wIo icndcrs a voic wIciIcr in pcrson
or proy sIall lc acccpicd io iIc cclusion of iIc voics of iIc oiIcr joini Ioldcrs.

Any prcfcrcncc sIarcIoldcr prcscni ai any ncciing of our Conpany, sIall Iavc a rigIi io voic only on
rcsoluiions placcd lcforc iIc ncciing wIicI dirccily affcci iIc rigIis aiiacIcd io Iis prcfcrcncc sIarcs and
on cvcry rcsoluiion placcd lcforc iIc ncciing if iIc dividcnd duc on sucI prcfcrcncc sIarc capiial or any
pari of sucI dividcnd Ias rcnaincd unpaid in rcspcci of an aggrcgaic pcriod of noi lcss iIan iwo ycars
prcccding iIc daic of conncnccncni of sucI ncciing.

Undcr iIc Conpanics Aci and our Ariiclcs, cvcry proy (wIciIcr a ncnlcr or noii sIall lc appoinicd in
wriiing undcr iIc Iand of iIc appoinicr or Iis aiiorncy, or if sucI appoinicr is a corporaiion undcr iIc
connon scal of sucI corporaiion, sIall lc signcd ly an officcr or any aiiorncy duly auiIorizcd ly ii, and
any guardian nay appoini sucI proy in casc of a lunaiic, idioi or ninor. TIc proy so appoinicd sIall
Iavc no rigIi io spcal ai sucI ncciing.

TIc insiruncni appoiniing a proy is rcquircd io lc lodgcd wiiI our Conpany ai lcasi 48 Iours lcforc iIc
iinc of iIc ncciing. A voic givcn in accordancc wiiI iIc icrns of an insiruncni appoiniing a proy sIall lc
valid noiwiiIsianding iIc prior dcaiI of iIc principal, or rcvocaiion of iIc insiruncni, or iransfcr of iIc
sIarc in rcspcci of wIicI iIc voic is givcn, providcd no iniinaiion in wriiing of iIc dcaiI, rcvocaiion or
iransfcr of iIc sIarc sIall Iavc lccn rcccivcd ly our Conpany ai iIc Fcgisicrcd Officc lcforc iIc ncciing.



CRQYHUtLbOH SHcuULtLHV/WDUUDQtV

Wc nay issuc fron iinc io iinc dcli insiruncnis iIai arc parily and fully convcriillc inio Equiiy SIarcs
and1or warranis io purcIasc Equiiy SIarcs.

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Our audiicd consolidaicd financial siaicncnis for iIc rclcvani financial ycar, iIc dircciors' rcpori and iIc
audiiors' rcpori (collcciivcly iIc AQQuDO RHpRUt"i nusi lc laid lcforc iIc annual gcncral ncciing. TIcsc
also includc ccriain oiIcr financial infornaiion of iIc Conpany, a corporaic govcrnancc scciion and
nanagcncni's discussion and analysis and arc nadc availallc for inspcciion ai our rcgisicrcd officc during
nornal worling Iours for 21 days prior io iIc annual gcncral ncciing.

Undcr iIc Conpanics Aci, wc nusi filc iIc Annual Fcpori wiiI iIc Fcgisirar of Conpanics wiiIin 30 days
fron iIc daic of iIc annual gcncral ncciing. As rcquircd undcr iIc Lisiing Agrccncni, copics arc rcquircd
io lc sinuliancously scni io iIc DSE and any oiIcr ccIangcs on wIicI our Equiiy SIarcs arc lisicd. Wc
nusi also pullisI our financial rcsulis in ai lcasi onc EnglisI languagc daily ncwspapcr circulaiing in iIc
wIolc or sulsianiially iIc wIolc of India and also in a ncwspapcr pullisIcd in iIc languagc of iIc rcgion
wIcrc our rcgisicrcd officc is siiuaicd. Wc filc ccriain infornaiion on-linc, including iis Annual Fcpori,
quaricrly financial siaicncnis, rcpori on corporaic govcrnancc and iIc sIarcIolding paiicrn siaicncni, in
accordancc wiiI iIc rcquircncnis of iIc lisiing agrccncni.

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Savc as providcd in Scciion 108 of iIc Aci, no iransfcr of a sIarc sIall lc rcgisicrcd unlcss a propcr
insiruncni of iransfcr duly sianpcd and cccuicd ly or on lcIalf of iIc iransfcrrcr and ly or on lcIalf of
iIc iransfcrcc Ias lccn dclivcrcd io iIc Conpany wiiIin iIc iinc prcscrilcd ly Scciion 108 of iIc Aci
iogciIcr wiiI iIc ccriificaic or, if no sucI ccriificaic is in cisicncc, iIc lciicr of Alloincni of iIc sIarc. TIc
iransfcrrcr sIall lc dccncd io rcnain iIc Ioldcr of sucI sIarc uniil iIc nanc of iIc iransfcrcc is cnicrcd
in iIc Fcgisicr in rcspcci iIcrcof. EacI signaiurc io sucI iransfcr sIall lc duly aiicsicd ly iIc signaiurc of
onc wiincss wIo sIall add Iis addrcss.
Applicaiion for iIc iransfcr rcgisiraiion of iIc iransfcr of a sIarc nay lc nadc ciiIcr ly iIc iransfcrrcr or
iIc iransfcrcc, providcd !iIai, wIcrc sucI applicaiion is nadc ly iIc iransfcrrcr, no rcgisiraiion sIall in
iIc casc of a parily paid sIarc lc cffccicd unlcss iIc Conpany givcs noiicc of iIc applicaiion io iIc
iransfcrcc n iIc nanncr prcscrilcd ly scciion 110 of iIc Aci, and suljcci 7io iIc provisions of iIcsc
ariiclcs iIc Conpany sIall, unlcss 'oljcciion is nadc ly iIc iransfcrcc wiiIin iwo wccls fron iIc daic of
rcccipi of iIc noiicc, cnicr in iIc Fcgisicr iIc nanc of iIc iransfcrcc in iIc sanc nanncr and suljcci io
iIc sanc condiiion as if iIc applicaiion for rcgisiraiion of iIc iransfcr was nadc ly iransfcrcc.
Evcry insiruncni of iransfcr of sIarcs sIall lc in iIc prcscrilcd forn and in accordancc wiiI scciion 108
of iIc Aci.
Suljcci io iIc provisions of Scciion 111 of iIc Aci, iIc Doard wiiI oui assigning any rcasons for sucI
rcfusal, nay, wiiIin onc noniI fron iIc daic on wIicI iIc insiruncni of iransfcr was dclivcrcd io or iIc
iniinaiion of iransnission was lodgcd wiiI iIc conpany, rcfusc io rcgisicr any iransfcr of or iIc
iransnission ly opcraiion of law of iIc rigIi io a sIarc upon wIicI iIc Conpany Ias a licn and in casc of
a sIarc noi fully paid up iIc Doard nay rcfusc io rcgisicr a iransfcr wIcn any siaiuiory proIiliiion or any
aiiacIncni or proIiliiory ordcr of a conpcicni auiIoriiy rcsirains iIc Doards fron iransfcrring iIc sIarcs
oui of iIc nanc of iIc iransfcror or wIcn a iransfcror oljccis io iIc iransfcr providcd Ic scrvcs on iIc
Conpany wiiIin a rcasonallc iinc a proIiliiory ordcr of a couri of conpcicni Jurisdiciion.


Providcd Iowcvcr iIai iIc rcgisiraiion of sIarc sIall noi lc rcfuscd on iIc ground of iIc iransfcror lcing
ciiIcr alonc or joinily wiiI any oiIcr pcrson or pcrsons indclicd io Conpany on any accouni wIaisocvcr
cccpi wIcrc iIc conpany Ias a licn on iIc sIarcs.
No iransfcr sIall lc nadc io an insolvcni or pcrson of unsound nind. Fully paid-up sIarcs nay lc
pcrniiicd io lc iransfcrrcd io or Iold ly ninors providcd iIc applicaiion is signcd ly iIc guardian.
Evcry insiruncni of iransfcr sIall lc lcfi ai iIc officc for rcgisiraiion acconpanicd ly iIc ccriificaic of iIc
sIarc io lc iransfcrrcd or, if no sucI ccriificaic is in cisicncc, ly iIc lciicr of Alloincni of iIc sIarc and
sucI oiIcr cvidcncc as iIc Doard nay rcquirc io provc iIc iiilc of iIc iransfcror or Iis rigIi io iransfcr iIc
sIarcs. Evcry insiruncni of iransfcr wIicI sIall lc rcgisicrcd sIall lc rciaincd ly iIc Conpany, lui any
insiruncni of iransfcr wIicI iIc Doard nay rcfusc; io rcgisicr sIall lc rciurncd io iIc pcrsons dcposiiing
iIc sanc.
If iIc Doard rcfuscs wIciIcr in pursuancc of Ariiclc 38 or oiIcrwisc io rcgisicr iIc iransfcr of or iIc
iransnission ly opcraiion of law of iIc rigIi io any sIarc, iIc Conpany sIall wiiIin onc noniI fron iIc
daic on wIicI iIc insiruncni or iransfcr or iIc Iniinaiion of sucI iransnission, as iIc cascs nay lc, was
lodgcd wiiI iIc Conpany, scnd io iIc iransfcrcc and iIc iransfcror or io iIc pcrson giving iniinaiion of
sucI iransnission as iIc casc nay lc, noiicc of iIc rcfusal,
No fcc sIall lc cIargcd for rcgisiraiion of iransfcr, grani of prolaic, grani of lciicrs of Adninisiraiion,
ccriificaic of dcaiI or narriagc, powcr of Aiiorncy or oiIcr sinilar insiruncnis,
TIc cccuior or adninisiraior of a dcccascd ncnlcr (noi lcing onc of scvcral joini Ioldcrsi sIall lc iIc
only pcrson rccognizcd ly iIc Conpany as Iaving any iiilc io iIc sIarc rcgisicrcd in iIc nanc of sucI
ncnlcr and in casc of dcaiI of any onc or norc of iIc joini Ioldcrs of any rcgisicrcd sIarc, iIc survivor
sIall lc iIc only pcrson rccogniscd ly iIc Conpany as Iaving any iiilc io or inicrcsi in sucI sIarc lui
noiIing Icrcin coniaincd sIall lc ialcn io rclcasc iIc csiaic of a dcccascd joini-Ioldcr fron any lialiliiy on
iIc sIarc Icld ly Iin joinily wiiI any oiIcr pcrson. Dcforc rccognising any cccuior or adninisiraior iIc
Doard nay rcquirc Iin io oliain a Crani of Prolaic or Lciicrs of Adninisiraiion or oiIcr lcgal
rcprcscniaiion as iIc casc nay lc fron a conpcicni couri in India and Iaving cffcci in iIc placc wIcrc iIc
officc is siiuaicd.
Providcd ncvcriIclcss iIai in any casc wIcrc iIc Doard on iis alsoluic discrciion iIinls fii ii sIall lc
lawful for iIc Doard io dispcnsc wiiI iIc produciion of prolaic or lciicrs of Adninisiraiion or sucI oiIcr
lcgal rcprcscniaiion upon sucI icrns as io indcnnify or oiIcrwisc as iIc Doard, in iis alsoluic discrciion,
nay considcr adcquaic.
Any conniiicc or guardian curaior londs or oiIcr lcgal curaior of a lunaiic, idioi or non canps naniis
ncnlcr of any pcrson lcconing cniiilcd io or io iransfcr a sIarc in conscqucncc of iIc dcaiI or
lanlrupicy or insolvcncy of any ncnlcr upon producing sucI cvidcncc iIai Ic susiains iIc cIaracicr in
rcspcci of wIicI Ic proposcs io aci undcr iIis Ariiclc or of Iis iidc as iIc Doard iIinls sufficicni nay, wiiI
iIc conscni of iIc Doard (wIicI iIc Doard sIall noi lc lound io givci, lc rcgisicrcd as a ncnlcr in rcspcci
of sucI sIarc or nay, suljcci io iIc rcgulaiions as io iransfcr Icrcinlcforc coniaincd, iransfcr sucI sIarc.
TIis Ariiclc is Icrc naiicr rcfcrrcd io as TIc Transnission Ariiclc".
1. If iIc pcrson so lcconing cniiilcd undcr iIc Transnission Ariiclc sIall clcci io lc rcgisicrcd as
Ioldcr iIc sIarc Iinsclf Ic sIall dclivcr or scnd io iIc Conpany a noiicc in wriiing signcd ly Iin siaiing
iIai Ic so clccis.

2. If iIc pcrson aforcsaid sIall clcci io iransfcr iIc sIarc, Ic sIall icsiify Iis clcciion ly cccuiing an
insiruncni of iransfcr of iIc sIarc.

3. All iIc liniiaiions, rcsiriciions and provisions of iIcsc Ariiclcs rclaiing io iIc rigIi io iransfcr and
iIc rcgisiraiion of insiruncnis of iransfcr of a sIarc sIall lc applicallc io any sucI noiicc or iransfcr as


aforcsaid as if iIc dcaiI, lunacy, lanlrupicy, or insolvcncy of iIc ncnlcr Iad noi occurrcd and iIc noiicc
of iransfcr wcrc a iransfcr signcd ly iIai ncnlcr.

A pcrson so lcconing cniiilcd undcr iIc Transnission Ariiclc io a sIarc ly rcason of iIc dcaiI, lunacy,
lanlrupicy, or insolvcncy of iIc Ioldcr sIall suljcci io iIc provisions of Ariiclc 79 lc cniiilcd io iIc sanc
dividcnds and oiIcr advaniagcs as Ic would lc cniiilcd io if Ic wcrc iIc rcgisicrcd Ioldcr of iIc sIarc
cccpi iIai no sucI pcrson (oiIcr iIan a pcrson lcconing cniiilcd undcr iIc iransnission Ariiclc io iIc
sIarc of a lunaiic, idioi or non conpos naniis ncnlcri sIall lcforc lcing rcgisicrcd as a ncnlcr in
rcspcci of iIc sIarc lc cniiilcd io ccrcisc in rcspcci iIcrcof any rigIi confcrrcd ly ncnlcrsIip in rclaiion
io ncciings of iIc Conpany.
Providcd iIai iIc Doard nay ai any iinc givc noiicc rcquiring any sucI pcrson io clcci ciiIcr io lc
rcgisicrcd Iinsclf or io iransfcr iIc sIarc and if iIc noiicc noi conplicd wiiI wiiIin ninciy days, iIc Doard
nay iIcrcaficr wiiIIold payncni of iIc sIarc, uniil iIc rcquircncnis of iIc noiicc Iavc lccn conplicd
wiiI.
IQcUHDVH DQG RHGuctLRQ RI CDpLtDO

TIc Conpany nay fron iinc io iinc, ly Ordinary Fcsoluiion incrcasc iis capiial ly iIc crcaiion of ncw
sIarcs of sucI anouni as nay lc dccncd cpcdicni. TIc Conpany nay fron iinc io iinc ly Spccial
Fcsoluiion, rcducc iis capiial and any capiial rcdcnpiion rcscrvc accouni or sIarc prcniun accouni in
any nanncr and wiiI any suljcci io any incidcni auiIorizcd and conscni rcquircd ly law.

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Scciions 77A, 77AA and 77D of iIc Conpanics Aci rclaic io iIc powcr of a conpany io purcIasc iis own
sIarcs or oiIcr spccificd sccuriiics oui of iis frcc rcscrvcs, or iIc sccuriiics prcniun accouni or iIc
procccds of iIc issuc of any sIarcs or oiIcr spccificd sccuriiics (oiIcr iIan fron iIc procccds of an carlicr
issuc of iIc sanc lind of sIarcs or oiIcr spccificd sccuriiics proposcd io lc lougIi lacli suljcci io ccriain
condiiions, including.

x iIc luy-lacl Ias lccn auiIorizcd ly iIc Ariiclcs of Associaiion of iIc conpany;

x a spccial rcsoluiion Ias lccn passcd in a gcncral ncciing of iIc conpany auiIorizing iIc luy-lacl.
In casc of lisicd conpanics in accordancc wiiI iIc Conpanics (Passing of Fcsoluiion ly Posial
Dalloii Fulcs, 2001 sucI rcsoluiion auiIorizing luy-lacl Ias io lc passcd iIrougI a posial lalloi;

x iIc luy-lacl is for lcss iIan 25% of iIc ioial paid-up capiial and frcc rcscrvcs of iIc Conpany,
providcd iIai iIc luy-lacl of cquiiy sIarcs in any financial ycar sIall noi ccccd 25% of iis ioial
paid-up cquiiy capiial in iIai financial ycar;

x all iIc sIarcs or oiIcr spccificd sccuriiics for luy-lacl arc fully paid-up;

x iIc dcli owcd ly iIc conpany is noi norc iIan iwicc iIc capiial and frcc rcscrvcs aficr sucI luy-
lacl; and

x iIc luy-lacl is in accordancc wiiI iIc SEDI (Duy-Dacl of Sccuriiicsi Fcgulaiion, 1998.

TIc rcquircncni of spccial rcsoluiion ncniioncd alovc would noi lc applicallc if iIc luy-lacl is for lcss
iIan 10% of iIc ioial paid-up cquiiy capiial and frcc rcscrvcs of iIc conpany and providcd iIai sucI luy-
lacl Ias lccn auiIorizcd ly iIc loard of dircciors of iIc conpany. A conpany luying lacl iis sccuriiics
is rcquircd io ciinguisI and pIysically dcsiroy iIc sccuriiics so lougIi lacl wiiIin scvcn days of iIc lasi
daic of conplciion of iIc luy-lacl. FuriIcr, a conpany luying lacl iis sccuriiics is noi pcrniiicd io luy
lacl any sccuriiics for a pcriod of onc ycar fron iIc luy-lacl or io issuc iIc sanc lind of sccuriiics for


si noniIs suljcci io ccriain cccpiions. Evcry luy-lacl nusi lc conplcicd wiiIin a pcriod of onc ycar
fron iIc daic of passing of iIc spccial rcsoluiion or rcsoluiion of iIc loard of dircciors, as iIc casc nay
lc.
Undcr Scciion 77D of iIc Conpanics Aci, a conpany is also proIiliicd fron purcIasing iis own sIarcs or
spccificd sccuriiics iIrougI any sulsidiary conpany, including iis own sulsidiary conpanics, or iIrougI
any invcsincni conpany or group of invcsincni conpanics or if iIc conpany is dcfauliing on iIc
rcpayncni of dcposii or inicrcsi, rcdcnpiion of dclcniurcs or prcfcrcncc sIarcs or payncni of dividcnd io
a sIarcIoldcr or rcpayncni of any icrn loan or inicrcsi payallc iIcrcon io any financial insiiiuiion or
lanl, or in iIc cvcni of non-conpliancc wiiI ccriain oiIcr provisions of iIc Conpanics Aci.

WLQGLQJ up

Our Ariiclcs providc iIai on winding up, iIc liquidaior nay, wiiI iIc sanciion of an ordinary rcsoluiion of
our Conpany, dividc anongsi iIc coniriluiorics in spccic any pari of iIc asscis of our Conpany and nay,
wiiI iIc lilc sanciion, vcsi any pari of iIc asscis of iIc Conpany in irusiccs upon sucI irusis for iIc
lcncfii of iIc coniriluiorics, as iIc liquidaior wiiI iIc lilc sanciion, sIall iIinl fii in accordancc wiiI iIc
Conpanics Aci and our Ariiclcs.

If asscis availallc for disiriluiion anong iIc ncnlcrs arc insufficicni io rcpay iIc wIolc of iIc paid up
capiial, sucI surplus asscis sIall lc disiriluicd suljcci io iIc spccial prcfcrcniial rigIis of iIc prcfcrcncc
or any oiIcr sIarcIoldcrs, so iIai iIc losscs arc lornc ly iIc ncnlcrs in proporiion io iIc capiial paid up
on iIc sIarcs Icld ly iIcn rcspcciivcly ai iIc conncnccncni of iIc winding up. If iIc asscis availallc for
disiriluiion anong iIc ncnlcrs arc norc iIan sufficicni io rcpay iIc wIolc of iIc paid-up capiial, iIc
cccss asscis rcnaining aficr payncnis io iIc prcfcrcniial rigIis of any prcfcrcncc or oiIcr sIarcIoldcrs,
lclong io iIc ncnlcrs in proporiion io iIc anouni paid up on sucI sIarcs, rcspcciivcly, ai iIc
conncnccncni of iIc winding-up. WiiIoui prcjudicc io iIc rigIis or iIc Ioldcr of sIarcs issucd upon
spccial icrns and condiiions, prcfcrcncc sIarcIoldcrs sIall Iavc prior rigIis io rcpayncni of capiial and
dividcnds duc.
















TAXATION ASPECTS RELATING TO THE INSTRUMENT

TAXATION
TIc n{o)muton p)oudcd Icou scts out tIc possIc tux Icnc{ts uuuuIc to tIc sIu)cIodc)s o{ un Indun
compunu n u summu)u munnc) onu und s not u compctc unuuss o) stng o{ u potcntu tux conscqucnccs o{ tIc
suIsc)pton, ounc)sIp und dsposu o{ cqutu sIu)cs, undc) tIc cu))cnt tux uus p)cscntu n {o)cc n Indu.
Scuc)u o{ tIcsc Icnc{ts u)c dcpcndcnt on tIc sIu)cIodc)s {u{ng tIc condtons p)csc)Icd undc) tIc )ccuunt
tux uus. Hcncc, tIc uItu o{ tIc sIu)cIodc)s to dc)uc tIc tux Icnc{ts s dcpcndcnt upon {u{ng sucI
condtons, uIcI, Iuscd on Iusncss mpc)utucs u sIu)cIodc) {uccs, muu o) muu not cIoosc to {u{. TIc
{ooung ouc)ucu s not cxIuustuc o) comp)cIcnsuc und s not ntcndcd to Ic u suIsttutc {o) p)o{cssonu uducc.
Inucsto)s u)c uduscd to consut tIc) oun tux consutunt utI )cspcct to tIc tux mpcutons o{ un nucstmcnt n tIc
Equtu SIu)cs pu)tcuu)u n ucu o{ tIc {uct tIut cc)tun )cccntu cnuctcd cgsuton muu not Iuuc u d)cct cgu
p)cccdcnt o) muu Iuuc u d{{c)cnt ntc)p)ctuton on tIc Icnc{ts, uIcI un nucsto) cun uuu.

YOU SHOULD CONSULT YOUR OWN TAX ADVISORS CONCERNING THE INDIAN TAX IMPLICATIONS AND
CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF EQUITY SHARES IN YOUR PARTICULAR
SITUATION.

For iIcsc purposcs, Non-Fcsidcni ncans a pcrson wIo is noi a rcsidcni in India. For purposcs of iIc Inconc Ta
Aci, 1961, an individual is considcrcd io lc a rcsidcni of India during any financial ycar if Ic or sIc is in India in
iIai ycar for.

x a pcriod or pcriods anouniing io 182 days or norc; or

x 60 days or norc if wiiIin iIc four prcccding ycars Ic1sIc Ias lccn in India for a pcriod or pcriods
anouniing io 365 days or norc; or

x 182 days or norc, in iIc casc of a ciiizcn of India or a pcrson of Indian origin living alroad wIo
visiis India or

x 182 days or norc, in iIc casc of a ciiizcn of India wIo lcavcs India for iIc purposcs of cnployncni
ouisidc India in any prcvious ycar

A conpany is rcsidcni in India if ii is forncd and incorporaicd in accordancc wiiI iIc Conpanics Aci and Ias iis
rcgisicrcd officc in India or iIc conirol and nanagcncni of iis affairs is siiuaicd wIolly in India. A firn or oiIcr
associaiion of pcrsons is rcsidcni in India cccpi wIcrc iIc conirol and nanagcncni of iis affairs is siiuaicd
wIolly ouisidc India.

TIc following is lascd on iIc provisions of Indian ia laws as of iIc daic Icrcof, suljcci io cIangc, if any,
possilly on a rciroaciivc lasis.
TIis sunnary is noi inicndcd io consiiiuic a conplcic analysis of iIc Indian ia conscqucnccs io any pariicular
Non-Fcsidcni Ioldcrs. Individual ia conscqucnccs of an invcsincni in Equiiy SIarcs nay vary for Non-Fcsidcnis
in various circunsianccs, and poicniial Invcsiors sIould iIcrcforc consuli iIcir own ia adviscrs as io iIc ia
conscqucnccs of sucI purcIasc, owncrsIip and disposiiion undcr iIc ia laws of India, iIc jurisdiciion of iIcir
rcsidcncc and any ia ircaiy lciwccn India and iIcir couniry of rcsidcncc.

TIc Inconc Ta Aci, 1961 is rcviscd ly iIc Financc Aci cvcry fiscal ycar.

As pcr iIc iaaiion laws in forcc, iIc ia lcncfiis1conscqucnccs as applicallc, io iIc OIDs (noi lcing individuals
or HUFsi invcsiing in iIc Equiiy SIarcs of our Conpany arc siaicd as follows.


STATEMENT OF POSSIBLE TAX BENEFITS AVAILABLE TO THE COMPANY AND ITS SHAREHOLDERS

(A) BENEFITS TO OUR COMPANY UNDER THE INCOME-TAX ACT, 1961 (THE INCOME TAX ACT"):

GHQHUDO TDx BHQHILtV
1. Undcr scciion 10(34i of iIc Inconc Ta Aci, any inconc ly way of dividcnds rcfcrrcd io in scciion 115-O (i.c.
dividcnds dcclarcd, disiriluicd or paid on or aficr April 1, 2003 ly doncsiic conpanicsi rcccivcd on iIc sIarcs of
any conpany is ccnpi fron ia.

2. Undcr scciion 10(35i of iIc Inconc Ta Aci, any inconc rcccivcd fron uniis of a Muiual Fund spccificd undcr
scciion 10(23Di of iIc Inconc Ta Aci, is ccnpi fron ia.

3. Undcr scciion 10(38i of iIc Inconc Ta Aci, any long-icrn capiial gains arising io a sIarcIoldcr fron iransfcr
of long-icrn capiial assci, lcing cquiiy sIarcs in a conpany or a unii of an cquiiy oricnicd fund (i.c. if iIc sIarcs
or uniis arc Icld for norc iIan iwclvc noniIsi would noi lc liallc io ia in iIc Iands of iIc sIarcIoldcr, if iIc
following condiiions arc saiisficd.
a. TIc iransaciion of salc of sucI cquiiy sIarc or unii is cnicrcd inio on or aficr Ociolcr 1, 2004;
l. TIc iransaciion is cIargcallc io sccuriiics iransaciion ia.
Howcvcr, iIc cpcndiiurc and inconc rclaiing io iIc provisions of scciion 10(38i of iIc Inconc Ta Aci would noi
lc adjusicd for iIc purposc of conpuiing lool profiis undcr scciion 115JD of iIc Inconc Ta Aci.

4. Scciion 14A of iIc Inconc Ta Aci rcsiricis clain for dcduciion of cpcnscs incurrcd in rclaiion io inconc
wIicI docs noi forn pari of iIc ioial inconc undcr iIc Inconc Ta Aci viz. inconc rcccivcd undcr scciions
10(34i, 10(35i, cic. TIus, any cpcndiiurc incurrcd io carn iIc said inconc is noi a ia- dcduciillc cpcndiiurc.

5. Undcr Scciion 32 of iIc Inconc Ta Aci, iIc Conpany can clain dcprcciaiion allowancc ai iIc prcscrilcd raics
on iangillc asscis sucI as luilding, plani and nacIincry, furniiurc and fiiurcs, cic. and iniangillc asscis sucI
as paicni, iradcnarl, copyrigIi, lnow-Iow, liccnscs, cic. if acquircd aficr MarcI 31, 1998. In icrns of Clausc
(iiai of sulscciion (1i of scciion 32 of iIc Inconc Ta Aci, iIc Conpany is cniiilcd io furiIcr dcprcciaiion of 20%
as addiiional dcprcciaiion on ncw planis and nacIincry acquircd and insiallcd aficr MarcI 31, 2005, suljcci io
condiiions spccificd iIcrcin.

6. Undcr scciion 35 of iIc Inconc Ta Aci, iIc Conpany is cniiilcd io a wcigIicd dcduciion of 150% undcr
scciion 35(2ADi of iIc Inconc Ta Aci 1961 in rcspcci of iIc rcvcnuc as wcll as capiial cpcndiiurc (cccpi on
Land and Duildingi incurrcd ai ii's in-Iousc FcscarcI and Dcvclopncni faciliiics.

7. Undcr scciion 35D of iIc Inconc Ta Aci, iIc Conpany will lc cniiilcd io a dcduciion cqual io onc- fifiI of iIc
cpcndiiurc incurrcd of iIc naiurc spccificd in iIc said scciion, including cpcndiiurc incurrcd on prcscni issuc,
sucI as undcr wriiing connission, lrolcragc and oiIcr cIargcs, as spccificd in iIc provision, for a pcriod of fivc
succcssivc ycars suljcci io iIc liniis providcd and condiiions spccificd iIcrcin.

8. Undcr scciion 48 of iIc Inconc Ta Aci, if any long icrn asscis (Icld for norc iIan 36 noniIsi or iIc long
icrn invcsincnis in sIarcs (Icld for norc iIan 12 noniIsi arc sold iIc gains, if any (in casc noi covcrcd undcr
scciion 10(38i of iIc Inconc Ta Acii, will lc ircaicd as long-icrn capiial gains and iIc gains will lc calculaicd ly
dcduciing fron iIc gross considcraiion, iIc indccd cosi of acquisiiion. TIc indccd cosi of
acquisiiion1inprovcncni ncans an anouni wIicI lcars io iIc cosi of acquisiiion1inprovcncni iIc sanc
proporiion as cosi inflaiion indc for iIc ycar in wIicI iIc assci is iransfcrrcd lcars io iIc cosi inflaiion indc for
iIc firsi ycar in wIicI iIc assci was Icld! for iIc ycar in wIicI iIc inprovcncni io iIc assci iool placc.

9. Undcr Scciion 50D of iIc Inconc Ta Aci, iIc conpany is cniiilcd io clain iIc lcncfii of spccial provision for
conpuiaiion of capiial gains arising in casc of iIc iransfcr of an undcrialing 1 lusincss on slunp salc lasis.

10. TIc Conpany is cniiilcd io a dcduciion undcr scciion 80C of iIc Inconc Ta Aci in rcspcci of anounis
coniriluicd as donaiions io various cIariiallc insiiiuiions and funds covcrcd undcr iIai scciion, suljcci io
fulfillncni of condiiions prcscrilcd iIcrcin.

11. Undcr scciion 112 of iIc Inconc Ta Aci, long-icrn capiial gains arc suljcci io ia ai a raic of 20% (plus
applicallc surcIargc and ccssi aficr indcaiion, as providcd in iIc sccond proviso io scciion 48 of iIc Inconc Ta


Aci. Howcvcr, in casc of lisicd sccuriiics or uniis, iIc anouni of sucI ia could lc liniicd io 10% (plus applicallc
surcIargc and ccssi, wiiIoui indcaiion lcncfii, ai iIc opiion of iIc Conpany in cascs wIcrc sccuriiics
iransaciion ia is noi lcvicd

12. Undcr scciion 115JAA(1Ai of iIc Inconc Ta Aci, crcdii is allowcd in rcspcci of any Mininun Alicrnaic Ta
(MATi paid undcr scciion 115JD of iIc Inconc Ta Aci for any asscssncni ycar conncncing on or aficr April 1,
2006. Ta crcdii cligillc io lc carricd forward will lc iIc diffcrcncc lciwccn MAT paid and iIc ia conpuicd as
pcr iIc nornal provisions of iIc Inconc Ta Aci for iIai asscssncni ycar. SucI MAT crcdii is allowcd io lc
carricd forward for sciiing off againsi iIc fuiurc ia lialiliiy (oiIcr iIan MAT lialiliiyi up io 7 succccding ycars
fron iIc ycar in wIicI iIc MAT was paid.

SpHcLDO TDx BHQHILtV


1. TIc Conpany is cligillc for dcduciion undcr scciion 80-IA (4i (ivi of iIc Inconc Ta Aci. TIc dcduciion is
cquivalcni io 100% of profiis for a pcriod of 10 consccuiivc ycars fron gcncraiion of powcr, suljcci io fulfillncni
of iIc condiiions spccificd iIcrcin.


(B) BENEFITS TO THE COMPANY UNDER THE WEALTH TAX ACT, 19S?:

Ccncral Ta Dcncfiis

1. As pcr iIc provisions of scciion 2(ni of iIc WcaliI ia Aci, 1957, iIc Conpany is cniiilcd io rcducc dclis
owcd in rclaiion io iIc asscis wIicI arc cIargcallc io wcaliI ia in conpuiing iIc nci iaallc wcaliI

Spccial Ta Dcncfiis

TIcrc arc no spccial ia lcncfiis availallc undcr iIc WcaliI Ta Aci io iIc Conpany.

(C) BENEFITS AVAILABLE TO RESIDENT SHAREHOLDERS UNDER THE I.T. ACT

1. Undcr Scciion 10(32i of iIc I.T. Aci, any inconc of ninor cIildrcn clullcd in iIc ioial inconc of iIc parcni
undcr Scciion 64(1Ai of iIc I.T. Aci, will lc ccnpi fron ia io iIc cicni of Fs 1500 pcr ninor cIild wIosc
inconc is so includcd.

2. Undcr Scciion 10(34i of iIc I.T. Aci, inconc ly way of dividcnds rcfcrrcd io in Scciion 115-O rcccivcd on iIc
sIarcs of iIc Conpany is ccnpi fron inconc ia in iIc Iands of sIarcIoldcrs. Howcvcr ii is pcriincni io noic
iIai Scciion 14A of iIc I.T. Aci rcsiricis clains for dcduciion of cpcnscs incurrcd in rclaiion io ccnpi inconc.
TIus, any cpcnsc incurrcd in rclaiion io carning of iIc dividcnd inconc is noi allowallc cpcndiiurc.
3. Undcr Scciion 48 of iIc I.T. Aci, wIicI prcscrilcs iIc nodc of conpuiaiion of capiial gains, providcs for
dcduciion of cosi of acquisiiion1inprovcncni and cpcnscs incurrcd wIolly and cclusivcly in conncciion wiiI
iIc iransfcr of a capiial assci, fron iIc salc considcraiion io arrivc ai iIc anouni of capiial gains. Howcvcr, as
pcr sccond proviso io Scciion 48 of iIc I.T. Aci, in rcspcci of long icrn capiial gains (i.c. sIarcs Icld for a pcriod
ccccding iwclvc noniIsi fron iransfcr of sIarcs of Indian Conpany, ii pcrniis sulsiiiuiion of cosi of acquisiiion
1 inprovcncni wiiI iIc indccd cosi of acquisiiion1inprovcncni, wIicI adjusis iIc cosi of
acquisiiion1inprovcncni ly a cosi inflaiion indc, as prcscrilcd fron iinc io iinc.

4. Undcr Scciion 10(38i of iIc I.T. Aci, long icrn capiial gains (undcr Scciion 2(29Di of iIc I.T. Acii arising io a
sIarcIoldcr on iransfcr of cquiiy sIarcs in iIc Conpany would lc ccnpi fron ia wIcrc iIc salc iransaciion
Ias lccn cnicrcd inio on a rccognizcd siocl ccIangc of India and is liallc io sccuriiics iransaciion ia. Howcvcr,
iIc inconc ly way of long icrn capiial gain of a sIarcIoldcr, wIo is a conpany, sIall lc ialcn inio accouni in
conpuiing iIc lool profii and inconc ia payallc undcr scciion 115JD of iIc I.T. Aci.

5. Undcr Scciion 112 of iIc I.T. Aci and oiIcr rclcvani provisions of iIc I.T. Aci, long icrn capiial gains, (oiIcr
iIan iIosc ccnpi undcr scciion 10(38i of iIc I.T. Acii arising on iransfcr of sIarcs in iIc Conpany, would lc
suljcci io ia ai a raic of 20% (plus applicallc surcIargc and cducaiion ccssi aficr indcaiion. TIc anouni of


sucI ia sIould Iowcvcr lc liniicd io 10% (plus applicallc surcIargc and cducaiion ccssi wiiIoui indcaiion, ai
iIc opiion of iIc sIarcIoldcr, if iIc iransfcr is nadc aficr lisiing of sIarcs. FuriIcr, no dcduciion undcr CIapicr
VI-A would lc allowcd in conpuiing sucI long icrn capiial gains suljccicd io ia undcr scciion

6. Undcr Scciion 54EC of iIc I.T. Aci and suljcci io iIc condiiions and io iIc cicni spccificd iIcrcin, long-icrn
capiial gains (oiIcr iIan iIosc ccnpi undcr Scciion 10(38i of iIc I.T. Acii arising on iIc iransfcr of sIarcs of iIc
Conpany would lc ccnpi fron ia if sucI capiial gain is invcsicd wiiIin 6 noniIs aficr iIc daic of sucI
iransfcr in iIc londs (long icrn spccificd asscisi issucd ly.

(ai Naiional HigIway AuiIoriiy of India consiiiuicd undcr Scciion 3 of TIc Naiional HigIway AuiIoriiy of
India Aci;
(li Fural Elccirificaiion Corporaiion Liniicd, iIc conpany forncd and rcgisicrcd undcr iIc Conpanics Aci.

TIc invcsincni in iIc long icrn spccificd asscis is cligillc for sucI dcduciion io iIc cicni of Fs.5 nillion.

If only pari of iIc capiial gain is so rcinvcsicd, iIc ccnpiion availallc sIall lc in iIc sanc proporiion as iIc cosi
of long icrn spccificd asscis lcars io iIc wIolc of iIc capiial gain. Howcvcr, in casc iIc long icrn spccificd assci
is iransfcrrcd or convcricd inio noncy wiiIin iIrcc ycars fron iIc daic of iis acquisiiion, iIc anouni so
ccnpicd sIall lc cIargcallc io ia during iIc ycar of sucI iransfcr or convcrsion. TIc cosi of iIc long icrn
spccificd asscis, wIicI Ias lccn considcrcd undcr iIis Scciion for calculaiing capiial gain, sIall noi lc allowcd
as a dcduciion fron iIc inconc-ia undcr Scciion 80C of iIc I.T. Aci for any asscssncni ycar lcginning on or
aficr April 1, 2006.

7. Undcr Scciion 54F of iIc I.T. Aci and suljcci io iIc condiiions spccificd iIcrcin, long-icrn capiial gains (oiIcr
iIan iIosc ccnpi fron ia undcr Scciion 10(38i of iIc I.T. Acii arising io an individual or a HUF on iransfcr of
sIarcs of iIc Conpany will lc ccnpi fron capiial gains ia suljcci io ccriain condiiions, if iIc nci considcraiion
fron iransfcr of sucI sIarcs arc uscd for purcIasc of rcsidcniial Iousc propcriy wiiIin a pcriod of onc ycar
lcforc or iwo ycars aficr iIc daic on wIicI iIc iransfcr iool placc or for consiruciion of rcsidcniial Iousc
propcriy wiiIin a pcriod of iIrcc ycars aficr iIc daic of sucI iransfcr.

8. Undcr Scciion 111A of iIc I.T. Aci and oiIcr rclcvani provisions of iIc I.T. Aci, sIori-icrn capiial gains (i.c., if
sIarcs arc Icld for a pcriod noi ccccding iwclvc noniIsi arising on iransfcr of cquiiy sIarc in iIc Conpany
would lc iaallc ai a raic of 15% (plus applicallc surcIargc and cducaiion ccssi wIcrc sucI iransaciion of salc
is cnicrcd on a rccognizcd siocl ccIangc in India and is liallc io sccuriiics iransaciion ia. FuriIcr, no
dcduciion undcr CIapicr VI-A would lc allowcd in conpuiing sucI sIori icrn capiial gains suljccicd io ia
undcr scciion 111A. SIori-icrn capiial gains arising fron iransfcr of sIarcs in a conpany, oiIcr iIan iIosc
covcrcd ly Scciion 111A of iIc IT Aci, would lc suljcci io ia as calculaicd undcr nornal provisions of iIc IT
Aci.

9. In icrns of Scciion 36(vi of iIc Aci, iIc sccuriiics iransaciion ia paid ly iIc sIarcIoldcr in rcspcci of iIc
iaallc sccuriiics iransaciions cnicrcd inio in iIc coursc of Iis lusincss of iransaciions1irading in sIarcs would
lc cligillc for dcduciion fron iIc anouni of inconc cIargcallc undcr iIc Icad Profii and gains of lusincss or
profcssion arising fron iaallc sccuriiics iransaciions. As sucI, no dcduciion will lc allowcd in conpuiing iIc
inconc cIargcallc io ia as capiial gains of sucI anouni paid on accouni of sccuriiics iransaciion ia.

(D) BENEFITS AVAILABLE TO MUTUAL FUNDS
1. As pcr iIc provisions of Scciion 10(23Di of iIc I.T. Aci, Muiual Funds or nuiual funds sci up ly pullic sccior
lanls or pullic financial insiiiuiions or auiIoriscd ly iIc FDI and suljcci io iIc condiiions spccificd iIcrcin,
would lc cligillc for ccnpiion fron inconc ia on iIcir inconc.

(E) BENEFITS AVAILABLE TO FIIV

1. Undcr Scciion 10(34i of iIc I.T. Aci, inconc ly way of dividcnds rcfcrrcd io in Scciion 115-O rcccivcd on iIc
sIarcs of iIc Conpany is ccnpi fron inconc ia in iIc Iands of sIarcIoldcrs. Scciion 14A of iIc I.T. Aci,
rcsiricis clain for dcduciion of cpcnscs incurrcd in rclaiion io ccnpi inconc. TIus, any cpcnsc incurrcd io
carn iIc dividcnd inconc is noi an allowallc cpcndiiurc



2. Undcr Scciion 10(38i of iIc I.T. Aci, long icrn capiial gains arising io a sIarcIoldcr on iransfcr of cquiiy
sIarcs in iIc Conpany would lc ccnpi fron ia wIcrc iIc salc iransaciion Ias lccn cnicrcd inio on a
rccogniscd siocl ccIangc of India and is liallc io sccuriiics iransaciion ia.

3. Undcr Scciion 54EC of iIc I.T. Aci and suljcci io iIc condiiions and io iIc cicni spccificd iIcrcin, long-icrn
capiial gains (oiIcr iIan iIosc ccnpi undcr Scciion 10(38i of iIc I.T. Acii arising on iIc iransfcr of sIarcs of iIc
Conpany would lc ccnpi fron ia if sucI capiial gain is invcsicd wiiIin 6 noniIs aficr iIc daic of sucI
iransfcr in iIc londs (long icrn spccificd asscisi issucd ly.

(ai Naiional HigIway AuiIoriiy of India consiiiuicd undcr scciion 3 of TIc Naiional HigIway AuiIoriiy of
India Aci;

(li Fural Elccirificaiion Corporaiion Liniicd, iIc conpany forncd and rcgisicrcd undcr iIc Conpanics Aci.
TIc invcsincni in iIc long icrn spccificd asscis is cligillc for sucI dcduciion io iIc cicni of Fs.5 nillion.

If only pari of iIc capiial gain is so rcinvcsicd, iIc ccnpiion availallc sIall lc in iIc sanc proporiion as iIc cosi
of long icrn spccificd asscis lcars io iIc wIolc of iIc capiial gain. Howcvcr, in casc iIc long icrn spccificd assci
is iransfcrrcd or convcricd inio noncy wiiIin iIrcc ycars fron iIc daic of iis acquisiiion, iIc anouni so
ccnpicd sIall lc cIargcallc io ia during iIc ycar sucI iransfcr or convcrsion.

4. Undcr Scciion 115AD (1i(iii of iIc Aci sIori icrn capiial gains on iransfcr of sccuriiics sIall lc cIargcallc ai a
raic of 30% (wIcrcin iIc iransaciions arc noi suljccicd io STTi and ai iIc raic of 15% if sucI iransaciion of salc
is cnicrcd on a rccogniscd siocl ccIangc in India and is liallc io sccuriiics iransaciion ia. TIc alovc raics arc
io lc incrcascd ly applicallc surcIargc and cducaiion ccss.

Undcr Scciion 115AD (1i(iiii of iIc I.T. Aci inconc ly way of long icrn capiial gain arising fron iIc iransfcr of
sIarcs (in cascs noi covcrcd undcr Scciion 10(38i of iIc I.T. Aci i.c. wIcrcin iIc iransaciions arc noi suljccicd io
STTi Icld in iIc conpany will lc iaallc . 10% (plus applicallc surcIargc and cducaiion ccssi. Ii is io lc noicd
iIai iIc lcncfiis of indcaiion and forcign currcncy fluciuaiions arc noi availallc io FIIs.

5. As pcr Scciion 90(2i of iIc I.T. Aci, provisions of iIc DTAA lciwccn India and iIc couniry of rcsidcncc of iIc
FII would prcvail ovcr iIc provisions of iIc I.T. Aci io iIc cicni iIcy arc norc lcncficial io iIc FII.

6. In icrns of Scciion 36(vi of iIc I.T. Aci, iIc sccuriiics iransaciion ia paid ly iIc sIarcIoldcr in rcspcci of iIc
iaallc sccuriiics iransaciions cnicrcd inio in iIc coursc of Iis lusincss of iransaciions1irading in sIarcs would
lc cligillc for dcduciion fron iIc anouni of inconc cIargcallc undcr iIc Icad Profii and gains of lusincss or
profcssion arising fron iaallc sccuriiics iransaciions. As sucI, no dcduciion will lc allowcd in conpuiing iIc
inconc cIargcallc io ia as capiial gains, sucI anouni paid on accouni of sccuriiics iransaciion ia.

(F) BENEFITS AVAILABLE TO VENTURE CAPITAL COMPANIES/ FUNDS
1. Undcr Scciion 10(23FDi of iIc I.T. Aci, any inconc of VCF (sci up io raisc funds for invcsincni in vcniurc
capiial undcrialing noiificd in iIis lcIalfi rcgisicrcd wiiI iIc SEDI would lc ccnpi fron inconc ia, suljcci io
condiiions spccificd iIcrcin. As pcr Scciion 115U of iIc I.T. Aci, any inconc dcrivcd ly a pcrson fron Iis
invcsincni in VCF would lc iaallc in iIc Iands of iIc pcrson naling an invcsincni in iIc sanc nanncr as if ii
wcrc iIc inconc rcccivcd ly sucI pcrson Iad iIc invcsincnis lccn nadc dirccily in iIc vcniurc capiial
undcrialing.

(G) BENEFITS AVAILABLE TO NON-RESIDENTS/ NON-RESIDENT INDIAN SHAREHOLDERS (OTHER THAN
MUTUAL FUNDS, FIIS AND FOREIGN VENTURE CAPITAL INVESTORS)

1. Undcr Scciion 10(32i of iIc Aci, any inconc of ninor cIildrcn clullcd in iIc ioial inconc of iIc parcni
undcr Scciion 64(1Ai of iIc Aci, will lc ccnpi fron ia io iIc cicni of Fs 1500 pcr ninor cIild wIosc
inconc is so includcd.

2. Undcr Scciion 10(34i of iIc I.T. Aci, inconc ly way of dividcnds rcfcrrcd io in Scciion 115-O of iIc I.T.
Aci, rcccivcd on iIc sIarcs of iIc Conpany is ccnpi fron inconc ia in iIc Iands of sIarcIoldcrs.
Scciion 14A of iIc I.T. Aci, rcsiricis clain for dcduciion of cpcnscs incurrcd in rclaiion io ccnpi
inconc. TIus, any cpcnsc incurrcd io carn iIc dividcnd inconc is noi an allowallc cpcndiiurc.



3. Undcr Scciion 10(38i of iIc I.T. Aci, long icrn capiial gains arising io a sIarcIoldcr on iransfcr of cquiiy
sIarcs in iIc Conpany would lc ccnpi fron ia wIcrc iIc salc iransaciion Ias lccn cnicrcd inio on a
rccogniscd siocl ccIangc of India and is liallc io sccuriiics iransaciion ia. Howcvcr, iIc inconc ly way
of long icrn capiial gain of a sIarcIoldcr wIo is a conpany and iaallc in India on nci lasis sIall lc
ialcn inio accouni in conpuiing iIc lool profii and inconc ia payallc undcr scciion 115JD of iIc I.T.
Aci.

4. As pcr iIc provisions of Scciion 112 of iIc Aci, long icrn gains accruing io iIc sIarcIoldcrs of iIc
Conpany, lcing non-rcsidcnis, fron iIc iransfcr of sIarcs of iIc Conpany lcing lisicd in rccognizcd
siocl ccIangcs, (oiIcr iIan iIosc ccnpi undcr scciion 10(38i of iIc I.T. Acii sIall lc cIargcd io ia .
20% (plus applicallc surcIargc and cducaiion ccssi aficr indcaiion as providcd in iIc sccond proviso io
scciion 48. As an alicrnaiivc, sucI gain nay lc iacd ai iIc opiion of sIarcIoldcr . 10% wiiIoui ialing
iIc lcncfii of indcaiion.

Scparaicly, iIc lcncfii of indcaiion as providcd in sccond proviso io scciion 48 is noi availallc io non-
rcsidcni sIarcIoldcrs if invcsincni in sIarcs is nadc in forcign currcncy. In sucI a casc, a proicciion is
providcd fron forcign ccIangc fluciuaiions as pcr iIc firsi proviso of scciion 48. TIc long icrn capiial
gains is iaallc . 10% (plus applicallc surcIargc and cducaiion ccssi lascd on ccriain judicial
prcccdcnis wIicI arc noi fron iIc Apc couri. FuriIcr, no dcduciion undcr CIapicr VI-A would lc
allowcd in conpuiing sucI long icrn capiial gains suljccicd io ia undcr scciion 112.

5. Undcr Scciion 54EC of iIc I.T. Aci and suljcci io iIc condiiions and io iIc cicni spccificd iIcrcin, long-
icrn capiial gains (oiIcr iIan iIosc ccnpi undcr Scciion 10(38i of iIc I.T. Acii arising on iIc iransfcr of
sIarcs of iIc Conpany would lc ccnpi fron ia if sucI capiial gain is invcsicd wiiIin 6 noniIs aficr
iIc daic of sucI iransfcr in iIc londs (long icrn spccificd asscisi issucd ly.

(ai Naiional HigIway AuiIoriiy of India consiiiuicd undcr scciion 3 of TIc Naiional HigIway AuiIoriiy
of India Aci, 1988;
(li Fural Elccirificaiion Corporaiion Liniicd, iIc conpany forncd and rcgisicrcd undcr iIc Conpanics
Aci.
TIc invcsincni in iIc long icrn spccificd asscis is cligillc for sucI dcduciion io iIc cicni of Fs.5
nillion.

If only pari of iIc capiial gain is so rcinvcsicd, iIc ccnpiion availallc sIall lc in iIc sanc proporiion as
iIc cosi of long icrn spccificd asscis lcars io iIc wIolc of iIc capiial gain. Howcvcr, in casc iIc long icrn
spccificd assci is iransfcrrcd or convcricd inio noncy wiiIin iIrcc ycars fron iIc daic of iis acquisiiion,
iIc anouni so ccnpicd sIall lc cIargcallc io ia during iIc ycar sucI iransfcr or convcrsion.

6. Undcr Scciion 54F of iIc I.T. Aci and suljcci io iIc condiiions spccificd iIcrcin, long-icrn capiial gains
(oiIcr iIan iIosc ccnpi fron ia undcr Scciion 10(38i of iIc I.T. Acii arising io an individual or a HUFi
on iransfcr of sIarcs of iIc Conpany will lc ccnpi fron capiial gains ia suljcci io ccriain condiiions, if
iIc nci considcraiion fron iransfcr of sucI sIarcs arc uscd for purcIasc of rcsidcniial Iousc propcriy
wiiIin a pcriod of onc ycar lcforc or iwo ycars aficr iIc daic on wIicI iIc iransfcr iool placc or for
consiruciion of rcsidcniial Iousc propcriy wiiIin a pcriod of iIrcc ycars aficr iIc daic of sucI iransfcr.
SucI rcsidcniial propcriy nusi lc in India

7. Undcr Scciion 111A of iIc I.T. Aci and oiIcr rclcvani provisions of iIc I.T. Aci, sIori-icrn capiial gains
(i.c., if sIarcs arc Icld for a pcriod noi ccccding 12 noniIsi arising on iransfcr of cquiiy sIarc in iIc
Conpany would lc iaallc ai a raic of 15% (plus applicallc surcIargc and cducaiion ccssi wIcrc sucI
iransaciion of salc is cnicrcd on a rccogniscd siocl ccIangc in India and is liallc io sccuriiics
iransaciion ia. FuriIcr, no dcduciion undcr CIapicr VI-A would lc allowcd in conpuiing sucI sIori
icrn capiial gains suljccicd io ia undcr scciion 111A. SIori-icrn capiial gains arising fron iransfcr of
sIarcs in a Conpany, oiIcr iIan iIosc covcrcd ly Scciion 111A of iIc I.T. Aci, would lc suljcci io ia as
calculaicd undcr iIc nornal provisions of iIc I.T. Aci.



8. WIcrc sIarcs of iIc Conpany Iavc lccn sulscrilcd in convcriillc forcign ccIangc, non-rcsidcni Indians
(i.c. an individual lcing a ciiizcn of India or pcrson of Indian origin wIo is noi a rcsidcnii Iavc iIc opiion
of lcing govcrncd ly iIc provisions of CIapicr XII-A of iIc I.T. Aci, wIicI ntc) uu cniiilcs iIcn io iIc
following lcncfiis.

i. Undcr Scciion 115E, wIcrc iIc ioial inconc of a non-rcsidcni Indian includcs any inconc fron
invcsincni or inconc fron capiial gains of an assci oiIcr iIan a spccificd assci, sucI inconc sIall lc
iacd ai a conccssional raic of 20% (plus applicallc surcIargc and cducaiion ccssi. Also, wIcrc
sIarcs in iIc conpany arc sulscrilcd for in convcriillc forcign ccIangc ly a non-rcsidcni Indian,
long icrn capiial gains arising io iIc non- rcsidcni Indian sIall lc iacd ai a conccssional raic of 10%
(plus applicallc surcIargc and cducaiion ccssi. In conpuiing iIc alovc gains iIc lcncfii of indcaiion
is noi allowcd, Iowcvcr iIc non-rcsidcnis Iavc lccn providcd wiiI a proicciion againsi forcign
ccIangc fluciuaiion undcr iIc firsi proviso io scciion 48 of iIc Aci.

ii. Undcr provisions of Scciion 115F of iIc I.T. Aci, long icrn capiial gains (in cascs noi covcrcd undcr
Scciion 10(38i of iIc I.T. Acii arising io a non-rcsidcni Indian fron iIc iransfcr of sIarcs of iIc
Conpany sulscrilcd io in convcriillc forcign ccIangc (in cascs noi covcrcd undcr Scciion 115E of
iIc I.T. Acii sIall lc ccnpi fron Inconc ia, if iIc nci considcraiion is rcinvcsicd in spccificd asscis
or in any savings ccriificaics rcfcrrcd io in Scciion 10(4Di, wiiIin si noniIs of iIc daic of iransfcr. If
only pari of iIc nci considcraiion is so rcinvcsicd, iIc ccnpiion sIall lc proporiionaicly rcduccd.
TIc anouni so ccnpicd sIall lc cIargcallc io ia sulscqucnily, if iIc spccificd asscis arc
iransfcrrcd or convcricd inio noncy wiiIin iIrcc ycars fron iIc daic of iIcir acquisiiion.

iii. Undcr provisions of Scciion 115C of iIc I.T. Aci, ii sIall noi lc ncccssary for a non- rcsidcni Indian io
furnisI Iis rciurn of inconc undcr Scciion 139(1i if Iis inconc cIargcallc undcr iIc Aci consisis of
only invcsincni inconc or long icrn capiial gains or loiI; arising oui of asscis acquircd, purcIascd
or sulscrilcd in convcriillc forcign ccIangc and ia dcduciillc ai sourcc Ias lccn dcducicd iIcrc
fron as pcr iIc provisions of CIapicr XVII-D of iIc I.T. Aci.

iv. As pcr provisions of Scciion 115I of iIc I.T. Aci, a Non-rcsidcni Indian nay clcci noi io lc govcrncd ly
provisions of CIapicr XII-A and conpuic Iis ioial inconc as pcr oiIcr provisions of iIc I.T. Aci.

9. In icrns of Scciion 36(vi of iIc I.T. Aci, iIc sccuriiics iransaciion ia paid ly iIc sIarcIoldcr in rcspcci
of iIc iaallc sccuriiics iransaciions cnicrcd inio in iIc coursc of Iis lusincss of iransaciions1irading in
sIarcs would lc cligillc for dcduciion c fron iIc anouni of inconc cIargcallc undcr iIc Icad Profii
and gains of lusincss or profcssion arising fron iaallc sccuriiics iransaciions. As sucI, no dcduciion
will lc allowcd in conpuiing iIc inconc cIargcallc io ia as capiial gains, sucI anouni paid on accouni
of sccuriiics iransaciion ia.

10. As pcr Scciion 90(2i of iIc I.T. Aci, provisions of iIc Doullc Taaiion Avoidancc Agrccncni lciwccn India
and iIc couniry of rcsidcncc of iIc non-rcsidcni1 non- rcsidcni Indian would prcvail ovcr iIc provisions
of iIc I.T. Aci io iIc cicni iIcy arc norc lcncficial io iIc non-rcsidcni1 non- rcsidcni Indian.

(H) BENEFITS AVAILABLE UNDER THE WEALTH TAX ACT, 19S?
Assci as dcfincd undcr Scciion 2(cai of iIc WcaliI Ta Aci, 1957 docs noi includc sIarcs in conpanics and
Icncc, sIarcs of iIc Conpany Icld ly iIc sIarcIoldcrs would noi lc liallc io wcaliI ia.

(I) BENEFITS AVAILABLE TO THE SHARE HOLDERS UNDER THE GIFT TAX ACT, 19SS
Cifi ia is noi lcviallc in rcspcci of any gifi nadc on or aficr Ociolcr 1, 1998. TIcrcforc, any gifi of sIarc of a
conpany will noi aiiraci gifi ia. WiiI cffcci fron Ociolcr 1, 2009, gifi ly way of innovallc propcriics, sIarcs,
sccuriiics, jcwcllcry, drawings, painiings cic rcccivcd ly an individual1HUF wiiIoui any adcquaic considcraiion
will cniail iaaiion as pcr Inconc Ta Aci in iIc Iands of rccipicni suljcci io ccriain cccpiions.

(J) TAX DEDUCTED AT SOURCE
No inconc ia is dcduciillc ai sourcc fron inconc ly way of capiial gains undcr iIc prcscni provisions of iIc I.T.
Aci. In casc iIc capiial gains, payallc io non-rcsidcni would lc suljcci io wiiIIolding of ia undcr Scciion 195 of
iIc I.T. Aci ai iIc raic undcr iIc doncsiic ia laws or undcr iIc ia laws or undcr iIc ia ircaiy, wIicIcvcr is


lcncficial io iIc asscsscc unlcss a lowcr wiiIIolding ia ccriificaic is oliaincd fron iIc ia auiIoriiics TIc alovc
TDS payncni will noi lc suljccicd io surcIargc. In casc of failurc of iIc dcducicc io iniinaic iIc Pcrnancni
Accouni Nunlcr io iIc dcducior1paycr, ii will cniail io 20% TDS as pcr proposcd scciion 206AA of iIc I.T. Aci
applicallc w.c.f. April 1, 2010.

NRtHV:

1. TIc alovc siaicncni of possillc dircci ia lcncfiis scis oui iIc provisions of law in a sunnary nanncr only
and is noi a conplcic analysis or lisiing of all poicniial ia conscqucnccs of iIc purcIasc, owncrsIip and disposal
of SIarcs;

2. TIis siaicncni is only inicndcd io providc gcncral infornaiion io iIc Invcsiors and is nciiIcr dcsigncd nor
inicndcd io lc a sulsiiiuic for profcssional ia advicc. In vicw of iIc individual naiurc of iIc ia conscqucnccs,
iIc cIanging ia laws, cacI invcsior is adviscd io consuli Iis or Icr own ia consuliani wiiI rcspcci io iIc
spccific ia inplicaiions arising oui of iIcir pariicipaiion in iIc issuc;

3. No surcIargc (wIcrcvcr applicallci io lc lcvicd on individuals, HUF, AOP, lody of individuals, ariificial
juridical pcrson, co-opcraiivc sociciy and local auiIoriiics cvcn if iIcir iaallc inconc ccccds Fs. 1 nillion.

4. In rcspcci of non-rcsidcnis, iIc ia raics and iIc conscqucni iaaiion ncniioncd alovc sIall lc furiIcr suljcci
io any lcncfiis availallc undcr iIc DTAA, if any, lciwccn India and iIc couniry in wIicI iIc non-rcsidcni Ias
fiscal donicilc; and

5. TIc siaicd lcncfiis will lc availallc only io iIc solc1firsi nancd Ioldcr in casc iIc sIarcs arc Icld ly joini
sIarcIoldcrs.


LEGAL PROCEEDINGS


TIc {ooung s tIc summu)u o{ mutc)u outstundng o) pcndng cgu p)occcdngs o) suts {cd Iu und
ugunst tIc Compunu uIcI ou) Compuncs Iccucs to Ic mutc)u n nutu)c.
Exccpt us dcsc)Icd Icou, ou) Compunu s not nuoucd n unu mutc)u cgu p)occcdngs und no sucI
p)occcdngs u)c tI)cutcncd, tIut muu Iuuc u mutc)u uduc)sc c{{cct on tIc Compunu`s Iusncss, p)opc)tcs,
{nuncu condton o) opc)utons. Ou) Compunu s nuoucd n {cu otIc)s cgu p)occcdng pcndng Ic{o)c
)ccuunt cou)t/stututo)u uutIo)tcs ncudng Cu/ C)mnu muttc)s uIcI u)c not cxpcctcd to Iuuc u
mutc)u uduc)sc mpuct on ou) Iusncss, )csuts o{ opc)utons und {nuncu condtons. Ou) Compunu Iccucs
tIut tIc numIc) o{ p)occcdngs n uIcI ou) Compunu s nuoucd n s not unusuu {o) u compunu o{ ts szc n
tIc contcxt o{ ts Iusncss und opc)utons.
TAXATION RELATED LITIGATION AND DEMAND NOTICES INVOLVING OUR COMPANY
1. INDIRECT TAX LITIGATIONS

(ai Our Conpany and iIc Connissioncr, Ccniral Ecisc, Vadodara Iavc filcd 2 appcals cacI
aggrcgaiing io upio Fs 58.46 lalIs lcforc iIc CESTAT, AIncdalad in rclaiion io dcnial of CENVAT
crcdii for ouiward iransporiaiion. TIc naiicrs arc currcnily pcnding and Icaring in iIcsc naiicrs is
yci io lc scIcdulcd.

(li Our Conpany Ias filcd 20 appcals anouniing io upio Fs. 35.75 lalIs oui of wIicI 10 naiicrs arc
pcnding lcforc CESTAT, Dangalorc and 10 naiicrs arc pcnding lcforc Connissioncr (Appcalsi,
Cusions, CocIin in rclaiion io sIori inpori of carlon llacl fccd siocl. Our Conpany Ias nadc a
prc-dcposii of Fs 11.36 lalIs againsi iIc aggrcgaic dcnands raiscd and iIc naiicrs arc currcnily
pcnding.

(ci TIiriccn appcals Iavc lccn filcd lcforc iIc Connissioncr Appcals, Durgapur ly our Conpany for
various naiicrs rclaiing io CENVAT crcdii disallowcd on caicring scrviccs, various inpui scrviccs,
scrvicc ia on CTO and C&F Scrviccs, cic. for an aggrcgaic anouni of Fs. 114.19 lalIs. TIc naiicrs
arc currcnily pcnding and Icaring in iIcsc naiicrs is yci io lc scIcdulcd.

(di Ninc appcals Iavc lccn filcd lcforc CESTAT, Kollaia ly our Conpany for various dispuics lilc
fccdsiocl sIoriagc, CENVAT crcdii ialcn on inpui scrvicc crcdii disiriluicd ly Icad officc of our
Conpany and scrvicc ia payncni on CTA scrviccs availcd, for an anouni of Fs. 2247.60 lalIs. TIc
Conpany Ias goi an uncondiiional siay in iwo of iIc said naiicrs, involving an anouni of Fs.
109.04 lalIs. In rcspcci of oiIcr naiicrs Icaring is yci io lc ficd.

2. SALES TAX / VAT LITIGATIONS

(ai Elcvcn appcals Iavc lccn filcd lcforc iIc Wcsi Dcngal Conncrcial Tacs Appcllaic and Fcvisional
Doard (WDCTAFD"i ly our Conpany for dispuics in rclaiion io iurnovcr discouni, CT
EnIanccncni, purcIasc ia, non allowancc of dcfcrncni and collcciion of frcigIi, for iIc
asscssncni ycars 1992-93, 1994-95,1995-96, 1999-00, 2003-04 & 2004-05 (loiI undcr iIc CST
Aci and iIc Wcsi Dcngal Salcs Ta Aci, 1994i.TIc naiicrs arc currcnily pcnding and Icaring in fivc
of iIcsc naiicrs is yci io lc scIcdulcd.

(li Two naiicrs aggrcgaiing io Fs. 310.10 lalIs arc currcnily pcnding lcforc Addiiional Connissioncr
(Fcvisioni, Conncrcial Tacs, Wcsi Dcngal in rclaiion io iurnovcr discouni and CT EnIanccncni
during iIc asscssncni ycars 2000-2001. Hcaring in iIc alovc naiicrs Ias lccn conplcicd and iIc
final ordcr is awaiicd.



(ci FuriIcr iIcrc arc iwo naiicrs wIicI arc currcnily pcnding lcforc Scnior Joini Connissioncr,
Conncrcial Tacs, Wcsi Dcngal for dispuics, in rclaiion io disallowancc of cpori, purcIasc ia,
frcigIi cIargcs collccicd and dcfcrncni, cic. during iIc asscssncni ycars 2005-06. Hcaring in iIc
alovc naiicrs Ias lccn conplcicd and iIc final ordcr is awaiicd.

3. INCOME TAX LITIGATIONS

(ai Our Conpany Ias filcd a Wrii Pciiiion No. 3151 of 2000 lcforc iIc Calcuiia HigI Couri againsi
noiicc u1s 148 issucd ly iIc asscssing officcr for asscssncni ycar 1994-95, for disallowing Cusions
duiy on ycar-cnd invcniorics. TIc anouni in dispuic is Fs. 260.50 lalIs. TIc Calcuiia HigI Couri
was plcascd io adnii iIc wrii and granicd inicrin injunciion in iIc naiicr. TIc naiicr is currcnily
pcnding for final Icaring.

(li TIc Inconc Ta dcparincni Ias filcd an appcal u1s 260A lcing ITA No.95 of 2006 lcforc iIc
Calcuiia HigI Couri againsi an ordcr passcd ly iIc ITAT, Kollaia, in ITA No. 13161Cal12003 in
rclaiion io allowaliliiy of liccncc fccs paid, in asscssncni ycar 1998-1999, as lusincss cpcndiiurc
anouniing io Fs. 318.,64 lalIs. TIc Calcuiia HigI Couri was plcascd io adnii iIc Inconc Ta
Dcparincni's appcal and Ias francd iIc qucsiion of law. TIc naiicr is currcnily pcnding for final
Icaring.

(ci TIc Inconc Ta dcparincni Ias filcd anoiIcr appcal u1s 260A lcing ITA No.214 of 2006 lcforc iIc
Calcuiia HigI Couri againsi an ordcr passcd ly iIc ITAT, Kollaia, in ITA No.18181K12005 in
rclaiion io allowaliliiy of liccncc fccs paid, in asscssncni ycar 1999-2000, as lusincss cpcndiiurc,
anouniing io Fs. 250.00 lalIs. TIc Calcuiia HigI Couri was plcascd io adnii iIc Inconc Ta
Dcparincni's appcal and Ias francd iIc qucsiion of law. TIc naiicr is currcnily pcnding for final
Icaring.

(di TIc Inconc ia dcparincni Ias filcd an appcal wiiI iIc Inconc Ta Appcllaic Trilunal, Kollaia
lcing ITA No.5661Kol12009 againsi iIc CIT(Ai, Kollaia's ordcr in Appcal no.631CIT(Ai-XXXII1DC
Cir-10108-091Kol for asscssncni ycar 2004-05 in rclaiion io allowaliliiy of cpcnscs lilc Liccnsc
fccs paid, FciaincrsIip fccs paid, Cucsi Housc Epcnscs and Enirancc fccs io Cluls as lusincss
cpcndiiurc, aggrcgaiing io Fs. 293.41 lalIs. Our Conpany Ias also filcd a Cross Oljcciion lcing
C.O. No.391Kol12009 for cnIanccncni of disallowancc of cpcnscs u1s 14A of iIc IT Aci anouniing
io Fs. 10.29 lalIs. TIc naiicrs arc currcnily pcnding for Icaring lcforc ITAT, Kollaia.

(ci Our Conpany Ias filcd an appcal lcforc CIT(Ai,Kollaia lcing Appcal no.4611CIT(Ai-XXIV1C-10108-
09 againsi iIc ordcr nadc u1s 143(3i for asscssncni ycar 2005-06 in rclaiion io allowaliliiy of
cpcnscs lilc FciaincrsIip fccs paid, Cucsi Housc Epcnscs, Epcnscs u1s 14A, Coniriluiion io
Providcni fund, Aircrafi flying rigIi cIargcs and Enirancc fccs io Cluls as lusincss cpcndiiurc,
aggrcgaiing io Fs. 116. 49 lalIs. TIc naiicr is currcnily pcnding for disposal lcforc CIT(Ai ,
Kollaia.

(fi Our Conpany Ias filcd an appcal lcforc CIT(Ai,Kollaia againsi iIc ordcr nadc u1s 143(3i for
asscssncni ycar 2006-07 in rclaiion io allowaliliiy of cpcnscs lilc FciaincrsIip fccs paid, Cucsi
Housc Epcnscs, Epcnscs u1s 14A, Coniriluiion io Providcni fund, Aircrafi flying rigIi cIargcs
and Enirancc fccs io Cluls as lusincss cpcndiiurc, aggrcgaiing io Fs. 241.49 lalIs. TIc naiicr is
currcnily pcnding for disposal lcforc CIT(Ai, Kollaia.

(gi Our Conpany Ias filcd an appcal lcforc CIT(Ai,Kollaia againsi iIc ordcr nadc u1s 143(3i for
asscssncni ycar 2007-08 in rclaiion io allowaliliiy of cpcnscs lilc FciaincrsIip fccs paid, Cucsi
Housc Epcnscs, Epcnscs u1s 14A, Coniriluiion io Providcni fund, Fcconpuiaiion of Dool Profii
for Scc.115JD, Aircrafi flying rigIi cIargcs and Enirancc fccs io Cluls as lusincss cpcndiiurc,
aggrcgaiing io Fs. 1131.47 lalIs. TIc naiicr is currcnily pcnding for disposal lcforc CIT(Ai,
Kollaia.




INDEPENDENT ACCOUNTANTS


Our Conpany's financial siaicncnis as on and for cacI of iIc ycars cndcd MarcI 31, 2007, 2008 and
2009, includcd in iIis Placcncni Docuncni, Iavc lccn audiicd ly Pricc WaicrIousc, CIaricrcd
Accounianis wIo Iavc also rcvicwcd iIc unaudiicd financial rcsulis of our Conpany as on and for iIc
ninc noniIs cndcd Dcccnlcr 31
si
, 2009.


DECLARATION

TIc Conpany ccriifics iIai all rclcvani provisions of CIapicr VIII of iIc SEDI Fcgulaiions, 2009 Iavc
lccn conplicd wiiI and no siaicncni nadc in iIis Placcncni Docuncni is conirary io iIc provisions of
CIapicr VIII of iIc SEDI Fcgulaiions, 2009 and iIai all approvals and pcrnissions rcquircd io carry on
iIis Issuc Iavc lccn oliaincd, arc currcnily valid and Iavc lccn conplicd wiiI. Wc furiIcr ccriify iIai
all iIc siaicncnis in iIis Placcncni Docuncni arc iruc and corrcci.



SG/-
MDQDJLQJ DLUHctRU

DDtH: 03.0S.2010

PODcH: KROkDtD


ANNEXURE - AUDITORS REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.2009


M1S.PFICE WATEFHOUSE.
CHAFTEFED ACCOUNTANTS

AUDITOF'S FEPOFT TO THE MEMDEFS OF
PHILLIPS CAHHOH HLACK LIMITED

1. Wc Iavc audiicd iIc aiiacIcd Dalancc SIcci of PIillips Carlon Dlacl Liniicd, as ai 31
si
MarcI
2009, and iIc rclaicd Profii and Loss Accouni and CasI Flow Siaicncni for iIc ycar cndcd on
iIai daic annccd iIcrcio, wIicI wc Iavc signcd undcr rcfcrcncc io iIis rcpori. TIcsc financial
siaicncnis arc iIc rcsponsililiiy of iIc Conpany's nanagcncni. Our rcsponsililiiy is io cprcss
an opinion on iIcsc financial siaicncnis lascd on our audii.
2. Wc conducicd our audii in accordancc wiiI iIc audiiing siandards gcncrally acccpicd in India.
TIosc Siandards rcquirc iIai wc plan and pcrforn iIc audii io oliain rcasonallc assurancc
aloui wIciIcr iIc financial siaicncnis arc frcc of naicrial nissiaicncni. An audii includcs
canining, on a icsi lasis, cvidcncc supporiing iIc anounis and disclosurcs in iIc financial
siaicncnis. An audii also includcs asscssing iIc accouniing principlcs uscd and significani
csiinaics nadc ly nanagcncni, as wcll as cvaluaiing iIc ovcrall financial siaicncni
prcscniaiion. Wc lclicvc iIai our audii providcs a rcasonallc lasis for our opinion.
3. As rcquircd ly iIc Conpanics (Audiior's Fcporii Ordcr, 2003, as ancndcd ly iIc Conpanics
(Audiior's Fcporii (Ancndncnii Ordcr, 2004, (iogciIcr 'iIc Ordcr'i issucd ly iIc Ccniral
Covcrnncni of India in icrns of sul-scciion (4Ai of Scciion 227 of 'TIc Conpanics Aci, 1956' of
India (iIc 'Aci'i and on iIc lasis of sucI cIccls of iIc lools and rccords of iIc Conpany as wc
considcrcd appropriaic and according io iIc infornaiion and cplanaiions givcn io us, wc
furiIcr rcpori iIai.
3.1 (ai TIc Conpany Ias nainiaincd propcr rccords sIowing full pariiculars including
quaniiiaiivc dciails and siiuaiion of ficd asscis.
(li TIc ficd asscis Iavc lccn pIysically vcrificd ly iIc nanagcncni during iIc ycar
and no naicrial discrcpancics lciwccn iIc lool rccords and iIc pIysical invcniory
Iavc lccn noiiccd. In our opinion, iIc frcqucncy of vcrificaiion is rcasonallc.
(ci In our opinion and according io iIc infornaiion and cplanaiions givcn io us, a
sulsianiial pari of ficd asscis Ias noi lccn disposcd of ly iIc Conpany during iIc
ycar.
3.2 (ai TIc invcniory (ccluding siocls wiiI iIird pariicsi Ias lccn pIysically vcrificd ly iIc
nanagcncni during iIc ycar. In rcspcci of invcniory lying wiiI iIird pariics, iIcsc
Iavc lccn confirncd ly iIcn. In our opinion, iIc frcqucncy of vcrificaiion is
rcasonallc.
(li In our opinion, iIc proccdurcs of pIysical vcrificaiion of invcniory followcd ly iIc
nanagcncni arc rcasonallc and adcquaic in rclaiion io iIc sizc of iIc Conpany and
iIc naiurc of iis lusincss.
(ci On iIc lasis of our caninaiion of iIc invcniory rccords, in our opinion, iIc
Conpany Ias nainiaincd propcr rccords of invcniory. TIc discrcpancics noiiccd on
pIysical vcrificaiion of invcniory as conparcd io iIc lool rccords wcrc noi naicrial.
3.3 (ai TIc Conpany Ias noi granicd any loans, sccurcd or unsccurcd, io conpanics, firns
or oiIcr pariics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci.
Accordingly, iIc paragrapIs 4(iiii (li, 4(iiii (ci and 4(iiii (di of iIc Ordcr arc noi
applicallc.
(li TIc Conpany Ias noi ialcn any loans, sccurcd or unsccurcd, fron conpanics, firns
or oiIcr pariics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci.
Accordingly, iIc paragrapIs 4(iiii (fi and 4(iiii (gi of iIc Ordcr arc noi applicallc.
3.4 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIcrc is an
adcquaic inicrnal conirol sysicn conncnsuraic wiiI iIc sizc of iIc Conpany and iIc
naiurc of iis lusincss for iIc purcIasc of invcniory, ficd asscis and for iIc salc of goods.
TIc Conpany Ias noi providcd any scrvicc during iIc ycar. FuriIcr, on iIc lasis of our
caninaiion of iIc lools and rccords of iIc Conpany, and according io iIc infornaiion
and cplanaiions givcn io us, wc Iavc nciiIcr conc across nor Iavc lccn inforncd of any
coniinuing failurc io corrcci najor wcalncsscs in iIc aforcsaid inicrnal conirol sysicn.
3.5 According io iIc infornaiion and cplanaiions givcn io us, iIcrc Iavc lccn no coniracis or


arrangcncnis rcfcrrcd io in Scciion 301 of iIc Aci during iIc ycar io lc cnicrcd in iIc
rcgisicr rcquircd io lc nainiaincd undcr iIai Scciion. Accordingly, conncniing on
iransaciions nadc in pursuancc of sucI coniracis or arrangcncnis docs noi arisc.
3.6 TIc Conpany Ias noi acccpicd during iIc ycar any dcposiis fron iIc pullic wiiIin iIc
ncaning of Scciions 58A and 58AA of iIc Aci and iIc rulcs francd iIcrc undcr.
3.7 In our opinion, iIc Conpany Ias an inicrnal audii sysicn conncnsuraic wiiI iis sizc and
naiurc of iis lusincss.
3.8 Wc Iavc lroadly rcvicwcd iIc lools of accouni nainiaincd ly iIc Conpany in rcspcci of
producis wIcrc, pursuani io iIc Fulcs nadc ly iIc Ccniral Covcrnncni of India
nainicnancc of cosi rccords Ias lccn prcscrilcd undcr clausc (di of sul-scciion (1i of
Scciion 209 of iIc Aci and arc of iIc opinion iIai prina facic, iIc prcscrilcd accounis and
rccords Iavc lccn nadc and nainiaincd. Wc Iavc noi, Iowcvcr, nadc a dciailcd
caninaiion of iIc rccords wiiI a vicw io dcicrninc wIciIcr iIcy arc accuraic or conplcic.
3.9 (ai According io iIc infornaiion and cplanaiions givcn io us and iIc rccords of iIc
Conpany canincd ly us, in our opinion, iIc Conpany is gcncrally rcgular in
dcposiiing iIc undispuicd siaiuiory ducs including providcni fund, invcsior
cducaiion and proicciion fund, cnployccs' siaic insurancc, inconc-ia, salcs-ia,
wcaliI ia, scrvicc ia, cusions duiy, ccisc duiy, ccss and oiIcr naicrial siaiuiory
ducs as applicallc wiiI iIc appropriaic auiIoriiics.
(li According io iIc infornaiion and cplanaiions givcn io us and iIc rccords of iIc
Conpany canincd ly us, iIcrc arc no ducs of inconc-ia, salcs ia, wcaliI ia,
scrvicc ia, cusions duiy, ccisc duiy and ccss as ai 31
si
MarcI 2009 wIicI Iavc
noi lccn dcposiicd on accouni of a dispuic.
3.10 TIc Conpany Ias no accunulaicd losscs as ai 31
si
MarcI 2009 and ii Ias noi incurrcd
any casI losscs in iIc financial ycar cndcd on iIai daic or in iIc inncdiaicly prcccding
financial ycar.
3.11 According io iIc infornaiion and cplanaiions givcn and iIc rccords of iIc Conpany
canincd ly us, iIc Conpany Ias noi dcfaulicd in rcpayncni of ducs io any financial
insiiiuiion or lanl or dclcniurc Ioldcrs as ai iIc Dalancc SIcci daic.
3.12 TIc Conpany Ias noi granicd any loans and advanccs on iIc lasis of sccuriiy ly way of
plcdgc of sIarcs, dclcniurcs and oiIcr sccuriiics.
3.13 TIc provisions of any spccial siaiuic applicallc io cIii fund1 nidIi 1nuiual lcncfii
fund1 sociciics arc noi applicallc io iIc Conpany.
3.14 In our opinion, iIc Conpany is noi a dcalcr or iradcr in sIarcs, sccuriiics, dclcniurcs
and oiIcr invcsincnis.
3.15 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIc
Conpany Ias noi givcn any guaranicc for loans ialcn ly oiIcrs fron lanls or financial
insiiiuiions during iIc ycar.
3.17 On iIc lasis of an ovcrall caninaiion of iIc Dalancc SIcci of iIc Conpany, in our
opinion and according io iIc infornaiion and cplanaiions givcn io us, iIcrc arc no
funds raiscd on a sIori-icrn lasis wIicI Iavc lccn uscd for long icrn invcsincni.
3.18 TIc Conpany Ias noi nadc any prcfcrcniial alloincni of sIarcs io pariics and
conpanics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci during iIc
ycar.
3.19 TIc Conpany Ias no dclcniurcs ouisianding ai iIc ycar-cnd.
3.20 TIc Conpany Ias noi rcccnily raiscd any noncy ly pullic issuc.
3.21 During iIc coursc of our caninaiion of iIc lools and rccords of iIc Conpany, carricd
oui in accordancc wiiI iIc gcncrally acccpicd audiiing praciiccs in India, and according
io iIc infornaiion and cplanaiions givcn io us, wc Iavc nciiIcr conc across any
insiancc of fraud on or ly iIc Conpany, noiiccd or rcporicd during iIc ycar, nor Iavc wc
lccn inforncd of sucI casc ly iIc nanagcncni.
4. FuriIcr io our conncnis in paragrapI 3 alovc, wc rcpori iIai.

(ai Wc Iavc oliaincd all iIc infornaiion and cplanaiions, wIicI io iIc lcsi of our
lnowlcdgc and lclicf wcrc ncccssary for iIc purposcs of our audii;
(li In our opinion, propcr lools of accouni as rcquircd ly law Iavc lccn lcpi ly iIc
Conpany so far as appcars fron our caninaiion of iIosc lools;
(ci TIc Dalancc SIcci, Profii and Loss Accouni and CasI Flow Siaicncni dcali wiiI ly iIis
rcpori arc in agrccncni wiiI iIc lools of accouni;
(di In our opinion, iIc Dalancc SIcci, Profii and Loss Accouni and CasI Flow Siaicncni


dcali wiiI ly iIis rcpori conply wiiI iIc accouniing siandards rcfcrrcd io in sul-scciion
(3Ci of Scciion 211 of iIc Aci;
(ci On iIc lasis of wriiicn rcprcscniaiions rcccivcd fron iIc dircciors, as on 31
si
MarcI
2009 and ialcn on rccord ly iIc Doard of Dircciors, nonc of iIc dircciors is disqualificd
as on 31
si
MarcI, 2009 fron lcing appoinicd as a dirccior in icrns of clausc (gi of sul-
scciion (1i of Scciion 274 of iIc Aci;
(fi In our opinion and io iIc lcsi of our infornaiion and according io iIc cplanaiions givcn
io us, iIc said financial siaicncnis iogciIcr wiiI iIc noics iIcrcon and aiiacIcd iIcrcio
givc in iIc prcscrilcd nanncr iIc infornaiion rcquircd ly iIc Aci, and givc a iruc and
fair vicw in conforniiy wiiI iIc accouniing principlcs gcncrally acccpicd in India.
(ii in iIc casc of iIc Dalancc SIcci, of iIc siaic of affairs of iIc Conpany as ai 31
si

MarcI 2009;
(iii in iIc casc of iIc Profii and Loss Accouni, of iIc loss for iIc ycar cndcd on iIai
daic; and
(iiii in iIc casc of iIc CasI Flow Siaicncni, of iIc casI flows for iIc ycar cndcd on
iIai daic.

P. Law
Pu)tnc)
(McnlcrsIip nunlcr 51790i
for and on lcIalf of
PFICE WATEFHOUSE,
Kollaia, 28
iI
April, 2009 CIaricrcd Accounianis.












FLQDQcLDO VtDtHmHQtV

BDODQcH SKHHt DV Dt 31Vt MDUcK, 2009 ScIcdulc AV Dt As ai
31Vt MDUcK, 2009 31si MarcI, 2008
RupHHV LQ LDkKV Fupccs in LalIs
SOURCES OF FUNDS
SHAFEHOLDEFS' FUNDS
SIarc Capiial 1 2,S2S.26 2,525.25
Convcriillc Warranis issucd and alloiicd (Noic 2 on
ScIcdulc 19i

- 447.00
Fcscrvcs and Surplus 2 1S,993.2S 21,307.38

21,S1S.S4 24,279.63
LOAN FUNDS 3
Sccurcd Loans 41,2S9.S? 26,457.96
Unsccurcd Loans 1,29S.S3 2,583.41
42,SSS.?0 29,041.37

Dcfcrrcd Ta Lialiliiy (Ncii Noic 12 on ScIcdulc 19| 1?1.10 3,530.23

64,S4S.34 56,851.23
APPLICATION OF FUNDS
FIXED ASSETS 4
Cross Dlocl 44,04S.S6 45,065.68
Lcss. Dcprcciaiion 21,2S0.69 20,575.23
Nci Dlocl 22,?9?.S? 24,490.45
Capiial Epcndiiurc In Progrcss (Noic 11.4 on
ScIcdulc 19i 3S,2?6.64 13,051.04
61,0?4.S1 37,541.49

INVESTMENTS 5 3,??6.10 2,805.52
CUFFENT ASSETS, LOANS AND ADVANCES
Invcniorics 6 12,096.9? 15,528.47
Sundry Dcliors 7 1S,0?S.62 21,756.76
CasI and Danl Dalanccs 8 ?13.4? 1,506.09
OiIcr Currcni Asscis 9 4,?S1.?4 4,633.00
Loans and Advanccs 10 3,6S4.?S 1,547.18
39,322.SS 44,971.50
Lcss.
CUFFENT LIADILITIES AND PFOVISIONS
Lialiliiics 11 39,?00.19 27,373.49
Provisions 12 - 1,181.80
39,?00.19 28,555.29
NET CUFFENT ASSETS (3??.64) 16,416.21

MISCELLANEOUS EXPENDITUFE (TO THE EXTENT
NOT WFITTEN OFF OF ADJUSTEDi
Payncnis undcr Voluniary Fciircncni ScIcncs ?2.3? 88.01
TOTAL 64,S4S.34 S6,SS1.23
NRtHV RQ DccRuQtV 19







PURILt DQG LRVV AccRuQt IRU tKH yHDU HQGHG 31Vt MDUcK, 2009

ScIcdulc
YHDU EQGHG
31Vt
MDUcK,2009
RupHHV LQ
ODkKV

Ycar Endcd
31si
MarcI,2008
Fupccs in
lalIs INCOME
Salcs - Carlon Dlacl 12?,20S.19 114,983.75
Lcss . Ecisc Duiy 12,431.13 13,159.12
114,???.06 101,824.63
Salcs - Powcr 1,SS0.?9 1,493.53
OiIcr Inconc 13 1,632.46 612.22
Closing Siocl of FinisIcd
Coods
3,11S.S9 2,114.92
121,0?6.20 106,045.30

EXPENDITURE



Opcning Siocl of FinisIcd
Coods
2,114.92 1,399.13
Faw Maicrials Consuncd 14 93,999.4? 64,066.26
Epcnscs 15 23,S?0.S1 25,802.65
Dcprcciaiion 1,963.6? 2,013.59
Financc and OiIcr
Epcnscs
16 S,SS?.6S 1,485.23
130,S06.2S 94,766.86
PROFIT / (LOSS) BEFORE
TAXATION


(9?30.0S) 11,278.44
Provision for Taaiion 17 (324S.91) 2,347.59
PROFIT AFTER
TAXATION
(64S4.14) 8,930.85
Dalancc lrougIi forward
fron prcvious ycar


10,433.S3 3,584.48
Profii availallc for
Appropriaiion
3,949.39 12,515.33
Proposcd Dividcnd - 1,010.13
Ta on Proposcd Dividcnd - 171.67
3,949.39 11,333.53
Transfcrrcd io Ccncral
Fcscrvc
- 900.00
Dalancc Carricd io Dalancc
SIcci (ScIcdulc 2i


3,949.39 10,433.53
Earnings pcr SIarc (Fs.i 18
- Dasic (24.12) 35.37
- Diluicd (24.12) 34.19
Noics on accouni 19




ScKHGuOHV IRUmLQJ pDUt RI tKH BDODQcH SKHHt

AV Dt 31Vt MDUcK,
2009 RupHHV LQ
LDkKV
As ai 31si MarcI,
2008 Fupccs in LalIs
SCHEDULE 1 - SHARE CAPITAL

AUTHORISED
50,000,000

Equiiy SIarcs of Fs.101- cacI
(31.03.2008 - 31,500,000i

S,000.00 3,150.00

ISSUED, SUBSCRIBED AND PAID UP
20,213,779 (31.03.2008 - 17,213,779i
Equiiy SIarcs of Fs. 101- cacI

fully paid up in casI (Noic 1
lclowi

2,021.3S 1,721.38


Lcss . Alloincni Moncy
rcccivallc

0.0? 0.08


2,021.31 1,721.30

3,692,750 Equiiy SIarcs of Fs.101- cacI
alloiicd as fully paid up lonus
sIarcs ly capiializaiion of
SIarc Prcniun and
Fcvcnuc Fcscrvc (Noic 2 lclowi

369.2S 369.28

4,346,667
Equiiy SIarcs of Fs.101- cacI
fully

434.6? 434.67
paid up oiIcr iIan casI


2,S2S.26 2,525.25
Noics.

1 (ai Including 3,000,000 Equiiy SIarcs of Fs101- cacI issucd and alloiicd during iIc ycar (Fcfcr
Noic 2 on ScIcdulc 19i
(li Alloincni of 1,823 sIarcs is pcnding againsi FigIis issuc nadc during 1993-94

2 Of iIc 3,692,750 SIarcs, 48 SIarcs Iavc noi lccn issucd io iIc conccrncd non-rcsidcni
sIarcIoldcrs pcnding approval of iIc Fcscrvc Danl of India.



SCHEDULE 2 - RESERVES AND SURPLUS

AV Dt 31Vt
MDUcK,
2009
RupHHV LQ
LDkKV
As ai 31si
MarcI, 2008
Fupccs in
LalIs
Fcscrvcs
Sccuriiics Prcniun
Dalancc as pcr lasi Accouni

6,644.S3 6,644.67
Add. Fcccivcd during iIc ycar (Noic 1 lclowi

4,1?0.04 0.16
(Noic 2 lclowi

10,S14.S?

6,644.83
Capiial Fcscrvc

1S6.S1

156.81
Dclcniurc Fcdcnpiion Fcscrvc
Dalancc as pcr lasi Accouni

- 312.50
Lcss. Transfcrrcd io Ccncral Fcscrvc

- 312.50


-

-
Ccncral Fcscrvc
Dalancc as pcr lasi Accouni

4,0?2.21 2,909.74
Lcss. Appropriaicd iowards Opcning Lialiliiics on
accouni of Enploycc Dcncfiis in icrns of
iransiiional provision coniaincd in Accouniing
Siandard (ASi 15 Enploycc Dcncfiis

- 50.03


4,0?2.21 2,859.71
Add. Transfcr fron Dclcniurc Fcdcnpiion
Fcscrvc

- 312.50
Add. Transfcr fron Profii and Loss Accouni

- 900.00


4,0?2.21

4,072.21
Surplus
Profii and Loss Accouni

3,949.39

10,433.53


1S,993.2S

21,307.38

Noics .
1. Including Fs.4,170 lalIs rcccivcd on Equiiy SIarcs issucd and alloiicd during iIc ycar. (Fcfcr Noic 2 on
ScIcdulc 19i
2. Nci of alloincni noncy rcccivallc on accouni of SIarc Prcniun Fs. 0.62 lalI (31.03.2008 - Fs. 0.66 lalIi.




SCHEDULE 3 - LOAN FUNDS
SECURED LOANS
AV Dt 31Vt
MDUcK, 2009
RupHHV LQ
LDkKV
As ai 31si
MarcI, 2008
Fupccs in
LalIs
Fron Danls
- CasI Crcdii1 Epori Pacling Crcdii faciliiics1 Loans (Noic 1
lclowiIncludc Fs. 0.23 lalIs (31.03.2008 Fs. 13.04 lalIsi on
accouni of inicrcsi accurcd and duc
3,636.19 10,908.37
- Tcrn Loans fron Danls (Noic 2 lclowi Includc Fs 33.57
lalIs (31.03.2008 - Fs 48.77 lalIsi on accouni of inicrcsi
accrucd and duc|
3?,623.6S 15,549.59

41,2S9.S? 26,457.96
UNSECURED LOANS

Loan fron Danl -SIori icrn - 1,000.00
Dcalcrs Sccuriiy Dcposiis 46.00 25.00
Salcs Ta Dcfcrrcd Loans (Noic 3 lclowi 1,249.S3 1,384.43
Eicrnal Conncrcial Dorrowing - 173.98

1,29S.S3 2,583.41

NRtHV:
1 CasI Crcdii1 Pacling Crcdii faciliiics1 Loans - undcr consoriiun arrangcncnis arc wiiI Danl of Daroda,
AllaIalad Danl , Epori and Inpori Danl of India, ICICI Danl Lid., Siaic Danl of Dilancr & Jaipur,
Ciiilanl NA and IDDI Danl ai Kollaia; Siaic Danl of India, Siaic Danl of Travancorc ai KocIi and
Syndicaic Danl ai Munlai. TIc alovc CasI Crcdii1 Pacling Crcdii faciliiics1Loans arc sccurcd ly way
of IypoiIccaiion in favour of iIc said lanls as and ly way of firsi cIargc, ranling pari-passu anong
iIcnsclvcs, of iIc Conpany's cisiing and fuiurc siocl of Faw Maicrials, FinisIcd and Scni FinisIcd
Coods, Consunallc Siorcs and Sparcs, including Siocl in Transii and in iIc posscssion of any iIird
pariy, prcscni and fuiurc Dool dclis, Monics Fcccivallc, Clains, cic. Icld ly any iIird pariy io iIc ordcr
of iIc disposiiion of iIc Conpany (ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai
Durgapur in Wcsi Dcngali and also ly a pari-passu sccond cIargc crcaicd on iIc ficd asscis of iIc
Conpany ai Durgapur in Wcsi Dcngal (ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai
Durgapur in Wcsi Dcngali, Palcj in Cujarai and Karinugal in KocIi. VcIiclc loans fron lanls arc
sccurcd ly way of IypoiIccaiion of vcIiclcs financcd ly sucI loans.

2 Tcrn Loans fron Danls .
Tcrn Loans fron Danls oiIcr iIan loan for 30MW Co-gcncraiion Powcr Plani ai Durgapur arc sccurcd
ly way of firsi cIargc, ranling pari-passu on all iIc innovallc propcriics of iIc Conpany siiuaicd ai
Durgapur in Wcsi Dcngal (ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in
Wcsi Dcngali, Palcj in Cujarai and Karinugal in KocIi, and also on iIc Conpany's novallc Plani and
MacIincry, MacIincry Sparcs, Tools and Acccssorics and oiIcr novallc propcriics loiI prcscni and
fuiurc ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngal. TIc
Tcrn Loan fron Danls arc also sccurcd ly pari-passu sccond cIargc on iIc Conpany's cisiing and
fuiurc siocl of Faw Maicrials, FinisIcd and Scni FinisIcd Coods, Consunallc Siorcs and Sparcs,
including Siocl in Transii and in iIc posscssion of any iIird pariy, prcscni and fuiurc Dool Dclis,
Monics Fcccivallc, Clains, cic. Icld ly any iIird pariy io iIc ordcr or iIc disposiiion of iIc Conpany
ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngal. Tcrn Loan
for 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngal is sccurcd ly an cclusivc cIargc on
iIc innovallc and novallc propcriics pcriaining io iIc said Co-gcncraiion Powcr Plani.

3 Salcs Ta Dcfcrrcd Loans1 Ouipui Ta Dcfcrrcd Loans allowcd ly iIc Siaic Covcrnncnis of Wcsi
Dcngal and Kcrala arc rcpayallc in siipulaicd pcriodic insiallncnis conncncing fron Augusi 2006
(Wcsi Dcngali and July 2007 (Kcralai rcspcciivcly, aggrcgaic anouni of sucI insiallncnis rcpayallc
wiiIin onc ycar is Fs. 338.94 lalIs. (Prcvious Ycar -Fs 230.29 lalIsi

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AV Dt 31Vt
MDUcK, 2009
RupHHV LQ
LDkKV
As ai 31si
MarcI,
2008
Fupccs in
LalIs
SCHEDULE S - INVESTMENTS (LRQJ-THUm)
[NRtH 1(YL) RQ ScKHGuOH 19]
TFADE -
Ouoicd

4,155,743 Fully paid Equiiy SIarcs of Fs
101- cacI in CEAT Lid 2,614.91 2,614.91

- (31.03.2008 - 1,385,247 Fully paid Equiiy
SIarcs of Fs 101- cacI in CHI Invcsincnis
Lid. - -
(Noic 3 lclowi
Ouoicd

344,130 Fully paid Equiiy SIarcs of Fs 101-
cacI in CESC Lid. 1,11S.?4 150.15
(267,130 sIarcs purcIascd during iIc ycari

7,186 Fully paid Equiiy SIarcs of Fs.101-
cacI in Danl of Daroda 16.S3 16.53

11,400 Fully paid Equiiy SIarcs of Fs.101-
cacI in Indian Ovcrscas Danl 2.?4 2.74

600,000 Fully paid Equiiy SIarcs of Fs.101-
cacI in Norplc Oal India Lid. 60.00 60.00

1,910,000 Fully paid Equiiy SIarcs of
Fs.101- cacI in Maplc Circuiis Lid. 191.01 191.01

- (31.03.2008 -17,417i 6.75% Ta Frcc US-
64 Donds of Fs.1001- cacI in

Unii Trusi of India (rcdccncd during iIc
ycari - 21.09
1,3S6.02 441.52

Unquoicd

50 Fully paid Prcfcrcncc SIarcs of Fs.1001-
cacI in Norplc Oal India Lid. 0.0S 0.05

50 Fully paid Prcfcrcncc SIarcs of Fs.1001-
cacI in Maplc Circuiis Lid. 0.0S 0.05
0.10 0.10
FuOOy PDLG EquLty SKDUHV LQ SubVLGLDUy CRmpDQy
UQquRtHG

5,100 Fully paid Equiiy SIarcs of Euro 11-
cacI in PIillips Carlon Dlacl

Cyprus Holdings Liniicd (acquircd during
iIc ycari 26.1S -
4,02?.21 3,056.53

Lcss . Provision for dininuiion in valuc of
Invcsincnis 2S1.11 251.01
3,??6.10 2,805.52



Noics. (1i Aggrcgaic anouni of Ouoicd Invcsincnis .

3,?49.92

2,805.42

Marlci valuc (ccluding Norplc Oal India Lid. and Maplc Circuiis
Lid. in alscncc of any currcni quoiaiion i Fs. 2,189.35 lalIs
( 31.03.2008 - Fs. 4910.75 lalIs i
(2i Aggrcgaic anouni of Unquoicd Invcsincnis

26.1S

0.10


3,??6.10

2,805.52

(3i 1,385,247 fully paid Equiiy SIarcs of Fs. 101- cacI in CHI
Invcsincni Lid acquircd in 2007-08 pursuani io a ScIcnc of
Arrangcncni lciwccn CEAT Lid and CHI Invcsincni Lid and Icld ai nil
valuc Iavc lccn sold during iIc ycar.

(4i Uniis of Muiual Funds purcIascd and sold during iIc ycar

Nunlcr of
uniis

Dool Valuc
Fupccs in
lalIs
Fcliancc Floaiing Faic Fund - CrowiI Plan - CrowiI Opiion

10,037,057

1,302
Fcliancc MoniIly Inicrval Fund - Scrics II - Insiiiuiional CrowiI Plan

1,794,110

200
Fcliancc Liquidiiy Fund-Daily Dividcnd Fcinvcsincni Opiion

1,000,082

100
Fcliancc Liquidiiy Fund - CrowiI Opiion

8,046,738

1,050
DSP Mcrrill LyncI CasI Plus - Insiiiuiional - CrowiI

166,609

1,800

UTI Liquid CasI Plan Insiiiuiional - Daily Inconc Opiion - Fc-
Invcsincni

662,772

6,757
UTI Liquid CasI Plus Insiiiuiional - CrowiI Opiion

391,241

5,340

UTI Ficd Inconc Inicrval Fund-MoniIly Inicrval Plan Scrics - I -
Insiiiuiional CrowiI Plan

9,440,999

1,000

Ficd Inconc Inicrval Fund-MoniIly Inicrval Plan Scrics - II - CrowiI
Plan

19,000,000

1,900
UTI Liquid Plus Fund Daily Dividcnd Plan - Fc-invcsincni

1,770

18
UTI Liquid Plus Fund Insiiiuiional Plan ( CrowiI Plan i

45,504,840

14,708
UTI Moncy Marlci Fund - CrowiI Plan

82,112,609

19,800





AV Dt 31Vt
MDUcK, 2009
RupHHV LQ
LDkKV
AV Dt 31Vt
MDUcK, 200S
Fupccs in
LalIs
SCHEDULE 6 - INVENTORIES
[NRtH 1(YLL) RQ ScKHGuOH 19]
Siorcs and Sparcs

2,342.91

1,321.75
Faw Maicrials

6,63S.1?

12,091.80
FinisIcd Coods

3,11S.S9

2,114.92


12,096.9?

15,528.47
SCHEDULE ? - SUNDRY DEBTORS (UNSECURED)

Dclis ouisianding for a pcriod ccccding si
noniIs
Considcrcd Cood

1,314.94

1,254.50

Considcrcd Douliful

1,213.?1

1,177.40
Lcss . Provision

1,213.?1

-

1,177.40

-



1,314.94

1,254.50
OiIcr Dclis - Considcrcd Cood

16,?60.6S

20,502.26


1S,0?S.62

21,756.76
SCHEDULE S - CASH AND BANK BALANCES

CasI on Hand

S.99

4.12
Fcniiianccs in Transii

SS1.?S

1,392.69
WiiI ScIcdulcd Danls.
- On Currcni Accounis

69.64

65.54
- On Unpaid and Unclaincd Dividcnd
Accounis (as pcr conira ScIcdulc 11i

44.09

34.74

- On Margin Moncy Accouni againsi

9.00

9.00
Cuaranicc


?13.4?


1,506.09





AV Dt 31Vt MDUcK, 2009
RupHHV LQ LDkKV
As ai 31si
MarcI, 2008
Fupccs in LalIs
SCHEDULE 9 - OTHER CURRENT ASSETS
CRQVLGHUHG JRRG
Dalanccs wiiI Cusions, Pori Trusi and Ecisc
AuiIoriiics cic. 2,S10.?3

2,580.31
OiIcr Dcposiis 992.09

927.55
including Fs 0.80 lalI, (31.03.2008 - Fs. 0.80 lalIi
in iIc forn of Naiional Savings Ccriificaic II Scrics|
Accruals undcr Duiy Ecnpiion ScIcnc pcriaining io
cporis 1 dccncd cporis 1,1SS.S6

952.81

Accrucd lcncfii undcr Duiy Drawlacl 123.36

172.33
4,?S1.?4

4,633.00
SCHEDULE 10 - LOANS AND ADVANCES
Unsccurcd - Considcrcd good

Advanccs rccovcrallc in casI or in lind or for valuc io
lc rcccivcd (Noic 10 on ScIcdulc 19i 2,14S.13

742.28
Advancc payncni of Tacs, cic.
nci of Provision for Taaiion Fs. 6,996.45 lalIs,
(31.03.2008 - Fs. 6,883.22 lalIsi| 1,S06.62

804.90
3,6S4.?S

1,547.18





AV Dt 31Vt
MDUcK,
2009
RupHHV LQ
LDkKV
As ai 31si
MarcI, 2008
Fupccs in
LalIs
SCHEDULE 11 - LIABILITIES
Sundry Crcdiiors
- Ducs io Micro Enicrpriscs and Snall Enicrpriscs
(Noic 1 lclowi

32.S9

21.18
- OiIcrs

39,133.S6

26,933.12


39,166.4S

26,954.30
Invcsior Educaiion and Proicciion Fund sIall lc
crcdiicd ly iIc following anounis (Noic 2 lclowi .

- Unpaid dividcnd (as pcr conira ScIcdulc 8i

44.09

34.74
- Unpaid naiurcd dcposiis

6.S0

7.34
Inicrcsi Accrucd lui noi duc on lorrowings

4S3.1S

377.11


39,?00.19

27,373.49
Noics .
1. Fcprcscnis anouni duc io nicro cnicrpriscs and snall cnicrpriscs (idcniificd on iIc lasis of infornaiion nadc
availallc during iIc ycar ly sucI cnicrpriscs io iIc Conpanyi. No lalancc is ouisianding for 45 days or norc. No
inicrcsi in icrns of Micro, Snall and Mcdiun Enicrpriscs Dcvclopncni Aci, 2006 Ias ciiIcr lccn paid or accrucd
during iIc ycar and rcnaining unpaid as ai 31
si
MarcI, 2009.
2. No anouni was duc for dcposii as on iIc Dalancc SIcci daic.




AV Dt As ai
31
Vt
MDUcK, 2009 31
si
MarcI, 2008
SCHEDULE 12 - PROVISIONS
Proposcd Dividcnd - 1,010.13
Ta on Proposcd Dividcnd 171.67
- 1,181.80
SCHEDULE 13 - OTHER INCOME
Inicrcsi (Cross,Ta dcducicd ai sourcc Fs.
41.45 lalIs; Prcvious Ycar - Fs. 16.34 lalIsi
- On Dcposiis 1S2.94 72.44
- On OiIcrs S.3S 6.01


1SS.29

78.45
Dividcnd
- Fron Tradc Invcsincnis 169.?1 99.74
- Fron OiIcrs ?.29 55.37


1??.00

155.11
Fcvcnuc fron Carlon Crcdii

-

277.77
Profii on Salc of Invcsincnis (ncii

1,113.31

5.94
Misccllancous

1S3.S6

94.95


1,632.46

612.22
SCHEDULE 14 - RAW MATERIALS CONSUMED

Opcning Siocl 12,091.S0 9,043.24
Add . PurcIascs (Noics 4.1 and 4.2 on
ScIcdulc 19i SS,S4S.S4 67,114.82

100,63?.64 76,158.06
Lcss . Closing Siocl 6,63S.1? 12,091.80
93,999.4? 64,066.26





SCHEDULE 1S - EXPENSES
YHDU EQGHG
31Vt MDUcK,
2009
RupHHV LQ
LDkKV
Ycar Endcd
31si MarcI,
2008 Fupccs
in LalIs
Salarics, Wagcs and Donus

2,?S3.32

2,513.38
Coniriluiion io Providcni Fund,

2S9.?3

261.10
Supcrannuaiion Fund and Craiuiiy Fund
Lalour and Siaff Wclfarc

410.6S

282.55
Consunpiion of Siorcs, Sparcs and Pacling
Maicrials

3,10?.4?

3,317.56
Powcr and Fucl

S21.4S

653.68
Waicr CIargcs

64.S6

102.67
Fcni

?3.61

62.19
Faics and Tacs

S9.4?

84.88
Mainicnancc and Fcpairs .
- Duildings 164.9S 102.79
ccluding Fs 0.19 lalI (Prcvious ycar - Fs. 0.14i
cIargcd io FcscarcI & Dcvclopncni Epcnscs|
- Plani and MacIincry 3SS.39 484.84
- OiIcrs 201.99 201.37


?22.33

789.00
Insurancc

91.02

81.19
Travclling and Transpori Epcnscs

4?2.00

534.23
Sulscripiions and Donaiions

4?.42

99.07
Misccllancous Epcnscs

2,6S1.S2

2,535.09
FrcigIi Ouiward

2,301.S9

2,062.17
Connission and Discouni

9,4?4.1S

11,612.53
Dircciors' Fccs

S.SS

6.85
FcscarcI and Dcvclopncni Epcnscs (Noic 4.2 on
ScIcdulc 19i

299.SS

309.15
Loss on Disposal of Ficd Asscis (ncii

3?9.6S

39.63
Provision for dininuiion in valuc of Invcsincnis

0.10

-
Dad Dclis wriiicn off (ncii 4S.64

342.03
Provision for Douliful Dclis (ncii

36.31

113.70


23,S?0.S1

25,802.65





YHDU
EQGHG
31Vt
MDUcK,
2009
Ycar
Endcd
31si
MarcI,
2008
SCHEDULE 16 - FINANCE AND OTHER
EXPENSES
Inicrcsi (Noic 23 on ScIcdulc 19i
- On Dclcniurcs -

64.79
- On Ficd Loans 2S1?.14

1,498.53
- On OiIcrs 41S.99

2,936.13

381.38

1,944.70
Danl & Discouniing CIargcs

1,263.S4

713.09
(Caini 1 Loss on Forcign EcIangc Fluciuaiions
(ncii 4,6SS.01 (1172.56i


S,SS?.6S

1,485.23
SCHEDULE 1? - PROVISION FOR TAXATION
Currcni Ta -

3,034.00
(Prcvious ycar nci of MAT Crcdii - Fs. 389.51lalIsi
Dcfcrrcd Ta (rclcasci 1 cIargc (33S9.14) (780.66i
Fringc Dcncfii Ta 113.23

94.25
(324S.91)

2,347.59

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SCHEDULE 19 - NOTES ON ACCOUNTS
1| Significani Accouniing Policics.
TIc Financial Siaicncnis arc prcparcd io conply in all naicrial aspccis wiiI all iIc applicallc accouniing
principlcs in India, tIc uppcuIc uccountng stundu)ds not{cd undc) Sccton 2ll(3C) o{ tIc Compuncs Act,
l95b und tIc )ccuunt p)ousons of iIc Conpanics Aci, 1956.
(iiFicd Asscis
Ficd asscis rcvalucd (lasis indicaicd in Noic 11.2 lclowi arc siaicd ai rcvalucd anounis lcss dcprcciaiion.
OiIcr ficd asscis arc siaicd ai cosi of acquisiiion (nci of CENVAT crcdiii or consiruciion lcss dcprcciaiion.
Cosi of sofiwarc arc capiialiscd in iIc pcriod in wIicI iIc sofiwarc is inplcncnicd for usc, wIcrc ii is
cpccicd io providc fuiurc cnduring ccononic lcncfii. Capiialisaiion cosis includc liccnsc fccs and cosi of
inplcncniaiion 1 sysicn inicgraiion scrviccs.
Inpairncni loss is rccogniscd wIcrcvcr iIc carrying anouni of ficd asscis of a casI gcncraiing unii
ccccds iis rccovcrallc anouni i.c. nci sclling pricc or valuc in usc, wIicIcvcr is IigIcr.
(iiiDorrowing Cosis
Dorrowing cosis aiiriluiallc io acquisiiion or consiruciion of qualifying asscis (asscis wIicI rcquirc
sulsianiial pcriod of iinc io gci rcady for iis inicndcd usci arc capiialiscd as pari of iIc cosi of sucI asscis.
All oiIcr lorrowing cosis arc cIargcd io rcvcnuc.
(iiiiCovcrnncni Cranis
Cranis of Capiial naiurc (noi rclaicd io spccific ficd asscisi arc crcdiicd io Capiial Fcscrvc. Cranis rclaicd
io rcvcnuc arc crcdiicd io rclaicd cpcnsc accouni.
(iviDcprcciaiion
Dcprcciaiion on iIc incrcncnial anouni addcd on rcvaluaiion in rcspcci of rcvalucd iicn is calculaicd on
siraigIi linc nciIod ai raics considcrcd applicallc ly valucrs. SucI addiiional dcprcciaiion is adjusicd
againsi iIc availallc lalancc in Fcvaluaiion Fcscrvc in rcspcci of rclaicd iicns.
Sofiwarc capiialiscd arc anoriiscd ovcr a pcriod of iIrcc ycars fron iIc daic of capiialisaiion.
Dcprcciaiion on original cosi of ficd asscis is providcd ciiIcr on siraigIi linc lasis or on wriiicn down
valuc nciIod ai raics spccificd in ScIcdulc XIV io iIc Conpanics Aci, 1956.
(viForcign Currcncy Transaciions
Monciary asscis and lialiliiics rclaiing io forcign currcncy iransaciions rcnaining unsciilcd ai iIc ycar-cnd
arc iranslaicd ai iIc prcvailing ccIangc raics and iIc rcsuliani gains1 losscs arc rccogniscd in iIc Profii
and Loss Accouni.
TIc prcniun or discouni in rcspcci of forward ccIangc coniracis arc appropriaicly rccogniscd in iIc Profii
and Loss Accouni ovcr iIc pcriod of iIc coniraci. EcIangc diffcrcncc arising on sucI coniracis is
accounicd for in iIc rcporiing pcriod in wIicI iIc ccIangc raic cIangcs.
(viiInvcsincnis
Invcsincnis arc valucd ai cosi lcss provision for dininuiion (oiIcr iIan icnporaryi in iIc valuc iIcrcof as
dcicrnincd ly iIc Doard of Dircciors lascd on pcriodical rcvicw.
(viii Invcniorics
Invcniorics arc valucd ai lowcr of cosi and nci rcalisallc valuc. Cosi of Siorcs and Sparcs is dcicrnincd on
wcigIicd avcragc lasis. Cosi of Faw Maicrials is dcicrnincd on firsi in firsi oui lasis. Cosi of FinisIcd
Coods includcs naicrial cosi (dcicrnincd on iIc lasis indicaicd alovci, appropriaic sIarc of ovcrIcads and
ccisc duiy payallc on sulscqucni clcarancc fron iIc faciory.
(viiii Fccogniiion of Inconc and Epcndiiurc
(ai Salc of carlon llacl is rccogniscd on iIc lasis of dcspaicI 1 sIipncni of goods io cusioncrs and iIc
salc of powcr is rccogniscd lascd on powcr off-ialc ly iIc cusioncr.
(li Iicns of inconc and cpcndiiurc arc rccogniscd on accrual (cccpi wIcrc iIcrc arc significani
unccriainiicsi and prudcni lasis.
(iiEnploycc Dcncfiis
a i Dcfincd Coniriluiion Plans
Annual coniriluiion payallc pursuani io iIc Conpany's supcrannuaiion scIcnc io a scparaic
supcrannuaiion fund csiallisIcd ly iIc Conpany for payncni of pcnsions io iIc cnployccs covcrcd undcr
iIc scIcnc and noniIly coniriluiions payallc io iIc providcni funds nainiaincd wiiI scparaic Trusis
csiallisIcd for Hcad Officc and Durgapur Plani cnployccs and wiiI Fcgional Providcni Fund
Connissioncrs (FPFCsi for oiIcr cnployccs arc rccogniscd as cIargc on accrual lasis. TIc Conpany Ias
an olligaiion io nalc addiiional coniriluiion io iIc Trusi in casc of inadcquacy of iIc aggrcgaic funds
availallc wiiI iIc Trusiccs (nainly conprising nci annual rciurn fron invcsincnis of iIc Trusii for
disiriluiion of annual inicrcsi on iIc lalanccs of iIc lcncficiarics ai applicallc inicrcsi raic noiificd ly iIc
Covcrnncni.
li Dcfincd Dcncfii Plans
Lialiliiics accrucd on accouni of graiuiiy covcrcd undcr policics wiiI Lifc Insurancc Corporaiion of India


(LICi| and lcavc cncasIncni lcncfiis payallc io iIc cnployccs on ccssaiion of iIcir cnployncni and
lialiliiics accrucd iowards posi cnployncni ncdical lcncfiis cicndcd io ccriain caicgorics of cnployccs
conprising payncni of annual ncdical insurancc prcniun io covcr Iospiialisaiion and rcinlurscncni of
doniciliary ncdical cpcnscs wiiIin a dcfincd nonciary linii| arc dcicrnincd ly aciuarial valuaiion lascd
on iIc nciIod prcscrilcd ly Accouniing Siandard (ASi 15 Enploycc Dcncfiis and arc rccogniscd as cIargc
on accrual lasis.
ci Tcrninaiion Dcncfiis
Payncnis undcr Voluniary Fciircncni ScIcncs arc anoriiscd ovcr iIc pcriod lcing lowcr of .
(ii iIc rcnaining pcriod of scrvicc of iIc rclaicd cnployccs,
(iii fivc ycars (for payncnis nadc upio 31si MarcI, 2006i,
(iiii ycar cnding 31si MarcI, 2010 (in casc of payncnis nadc fron 1si April, 2006i.
(i FcscarcI and Dcvclopncni
Fcvcnuc cpcndiiurc on rcscarcI and dcvclopncni is cIargcd io Profii and Loss Accouni in iIc iIc pcriod
in wIicI ii is incurrcd.
(ii Tacs on Inconc
Currcni ia is dcicrnincd as iIc anouni of ia payallc in rcspcci of iaallc inconc for iIc pcriod
lascd on applicallc ia raic and laws. Dcfcrrcd ia is rccogniscd, suljcci io considcraiion of
prudcncc in rcspcci of dcfcrrcd ia asscis, on iining diffcrcnccs, lcing iIc diffcrcncc lciwccn iaallc
inconc and accouniing inconc iIai originaics in onc pcriod and arc capallc of rcvcrsal in onc or norc
sulscqucni pcriods and is ncasurcd using ia raic and laws iIai Iavc lccn cnacicd or sulsianiivcly
cnacicd ly iIc Dalancc SIcci daic. Dcfcrrcd ia asscis arc pcriodically rcvicwcd io rcasscss rcalisaiion
iIcrcof.
2| On ccrcisc of iIc opiion io sulscrilc io iIc Conpany's Equiiy SIarcs ly iIc Ioldcrs of 3,000,000
Convcriillc Warranis of Fs.149 cacI alloiicd on 15iI MarcI, 2007 pursuani io iIc approval of iIc
ncnlcrs of iIc Conpany in accordancc wiiI SEDI guidclincs, 3,000,000 Equiiy SIarcs of Fs. 10 cacI fully
paid up Iavc lccn issucd and alloiicd on 15iI Scpicnlcr, 2008 on convcrsion of said Warranis.
Conscqucnily, oui of iIc procccds of Fs. 4,470 lalIs of iIc Convcriillc Warranis, Fs. 300 lalIs and Fs.
4,170 lalIs Iavc lccn iransfcrrcd io SIarc Capiial and Sccuriiics Prcniun Accouni rcspcciivcly.
3.1| Managcrial Fcnuncraiion .
YHDU EQGHG31Vt MDUcK,
2009 RupHHV LQ LDkKV
Ycar Endcd31si MarcI,
2008 Fupccs in LalIs
Anounis paid1 payallc io .
ai Managing Dirccior
Salarics, Donus and Allowanccs 1S2.SS 134.31
Coniriluiion io Providcni Fund,
Supcrannuaiion Fund and Craiuiiy Fund 9.9? 7.25
Pcrquisiics 4.1S 2.52
166.6? 144.08

li OiIcr Dircciors
Dircciors' Fccs S.SS 6.85
3.2| Conpuiaiion of Nci Profii undcr Scciion 198(1i 1 349 of iIc Conpanics Aci, 1956 Ias noi lccn
providcd as no connission is payallc in vicw of inadcquacy of profii.
4.1| Faw Maicrial PurcIasc is nci of Fs. 1747.62 lalIs (Prcvious ycar - Fs. 916.31 lalIsi lcing lcncfiis
undcr various duiy ccnpiion scIcncs pcriaining io cporis 1 dccncd cporis
4.2| FcscarcI and Dcvclopncni Epcnscs includcs Faw Maicrials Consuncd Fs. 245.40 lalIs (Prcvious
ycar - Fs.255.88 lalIsi, Salarics, Wagcs and Donus Fs.50.33 lalIs (Prcvious ycar - Fs. 30.98 lalIsi,
Coniriluiion io Providcni Fund, Supcrannuaiion Fund and Craiuiiy Fund Fs.1.36 lalIs (Prcvious ycar -
Fs. 3.25 lalIsi, Lalour and Siaff Wclfarc Fs.2.03 lalIs (Prcvious ycar - Fs. 1.64 lalIsi, Mainicnancc and
Fcpairs - Duilding Fs. Nil (Prcvious ycar - Fs. 0.19 lalIsi, Travclling and Transpori Epcnscs Fs. Nil
(Prcvious ycar - 3.18 lalIsi and Misccllancous Epcnscs Fs. 0.46 lalIs (Prcvious ycar - Fs. 14.03 lalIsi




4.3 Audiiors' Fcnuncraiion.
YHDU EQGHG31Vt
MDUcK, 2009 RupHHV
LQ LDkKV
Ycar Endcd31si
MarcI, 2008 Fupccs
in LalIs
Audii Fccs 16.00

16.00
Ta Audii 4.00 4.00
OiIcrs (Ccriificaiionsi 5.85 5.00
Fcinlurscncni of Epcnscs (including Scrvicc Ta io iIc
cicni rouicd iIrougI Profii and Loss Accounii 1.35 0.49

5. Toial Anouni of Consunpiion of Faw Maicrials, Siorcs and Sparcs.
RDZ MDtHULDO YHDU EQGHG 31Vt MDUcK, 2009 Ycar Endcd 31si MarcI, 2008
%
VDOuH RupHHV LQ
LDkKV %
Valuc Fupccs
in LalIs
Inporicd 93 S6,9S9.11 94 60,386.60
Indigcnous ? ?,010.36 6 3,679.66
Toial 100 93,999.4? 100 64,066.26
StRUHV DQG SpDUHV YHDU EQGHG 31Vt MDUcK, 2009 Ycar Endcd 31si MarcI, 2008
%
VDOuH RupHHV LQ
LDkKV %
Valuc Fupccs
in LalIs
Inporicd S 233.SS 7 245.48
Indigcnous 92 2,S?3.S9 93 3,072.08
Toial 100 3,10?.4? 100 3,317.56

6 Pariiculars of liccnscd capaciiy, insiallcd capaciiy, FinisIcd Coods and Salcs.
YHDU EQGHG 31Vt MDUcK, 2009 Ycar Endcd 31si MarcI, 2008
CDUbRQ BODck PRZHU Carlon Dlacl Powcr
QuDQtLty RupHHV LQ UQLt
RupHHV
LQ Ouaniiiy Fupccs in Unii
Fupccs
in
MT LDkKV LDkKV MT LalIs LalIs

(ii Liccnscd
Capaciiy
(pcr annuni
NRt
AppOLcDbOH NRt AppOLcDbOH
Noi
Applicallc
Noi
Applicallc
(iii Insiallcd
Capaciiy
(pcr annuni
as ccriificd
ly iIc
Managcncni
as ai
Dalancc
SIcci daic.

2?0,000 12 MW

270,000 12 MW
CDUbRQ
BODck :
Opcning
Siocl

S,060

2,114.92

4,052

1,399.13
Aciual
Produciion

212,1S0

250,484


.
Closing
Siocl

6,6S?

3,11S.S9

5,060

2,114.92
Salcs
(including
swccpingsi

210,SS3

12?,20S.19

249,476

114,983.75
PRZHU :
Ccncraiion
(Million
KWHi S6.S4

91.25

(LQcOuGLQJ
CDptLYH
CRQVumptLRQ
Htc. RI 2?.3S )
(including
Capiivc
Consunpiion
cic. of 31.00i
Salcs S9.16 1SS0.?9

60.25

1,493.53
. Including
produciion
for FcscarcI
and
Dcvclopncni
runs and
rcproccssing 66S MT 9S?.1? MT 987 MT


YHDU EQGHG 31Vt MDUcK,
2009
Ycar Endcd 31si MarcI,
2008
QuDQtLty RupHHV LQ Ouaniiiy Fupccs in
7. Faw Maicrials consuncd(all
indigcnous-unlcss ncniioncd
oiIcrwisci for nanufaciuring
Carlon Dlacl . MT LDkKV MT LalIs
(ii L.D.O.

9S?

216.62

853

296.41
(iii Indigcnous Carlon Dlacl
Fccd Siocl

11,?64

3,162.31

10,859

1,825.67
(iiii Inporicd Carlon Dlacl Fccd
Siocl

3S?,039

S?,1?9.23

427,380

60,603.32
(ivi Tar Oil

14,46?

3,6?6.3S

10,517

1,583.99
(vi OiIcrs

?6

10.33

32

12.75


3S4,303

94,244.S?

449,641

64,322.14
Lcss. Consunpiion iIrougI
FcscarcI and Dcvclopncni
runs.
Inporicd Carlon Dlacl
Fccd Siocl

1,04S

190.12

1,449

216.73
Tar Oil

1S 3.24

322

39.15
Indigcnous fccd siocl

319

S2.04

-

-


3S2,921

93,999.4?

447,870

64,066.26




8. CIF Valuc of Inporis -
YHDU EQGHG
31Vt MDUcK, 2009
RupHHV LQ LDkKV
Ycar Endcd
31si MarcI, 2008
Fupccs in LalIs
(ai Faw Maicrials ?6493.S? 57,697.50
(li Siorcs and Sparcs S04.0S 242.15
(ci Capiial Equipncni ?03.S4 953.05

9. Epcndiiurc in Forcign Currcncy cIargcd io
iIc Profii and Loss Accouni on accouni of.
(ai Connission on Epori Salcs 109.2S 361.56
(li Inicrcsi 1,S90.6S 524.99
(ci OiIcrs 6S1.?S 514.60
10. Advanccs of Fs. 2,148.13 lalIs (Prcvious Ycar - Fs. 742.28 lalIsi includcs Fs. 0.93 lalI (Prcvious Ycar -
Fs. 1.08 lalIsi duc ly an Officcr of iIc Conpany, nainun anouni duc ai any iinc during iIc ycar - Fs.
1.09 lalIs (Prcvious Ycar - Fs.1.24 lalIsi.
11.1 For iIc purposc of iIcsc accounis, following nciIods and raics of dcprcciaiion Iavc lccn uscd for
dcprcciaiing iIc original cosi of ficd asscis .
(ai Ccriain iicns of Plani and MacIincry lcing cncrgy saving dcviccs addcd during iIc pcriod cndcd 31si
MarcI,1987 . Undcr SiraigIi linc nciIod ai raics spccificd in ScIcdulc XIV of iIc Conpanics Aci, 1956.
(li OiIcr asscis addcd upio 31si MarcI,1987 . Undcr wriiicn down valuc nciIod ai raics spccificd in
ScIcdulc XIV of iIc Conpanics Aci, 1956.
(ci Addiiions sincc 1si April, 1987 . Undcr SiraigIi linc nciIod ai raics spccificd in ScIcdulc XIV of iIc
Conpanics Aci, 1956.
11.2 Dascd on iIc valuaiion rcporis sulniiicd ly iIc valucrs appoinicd for iIc purposc, ccriain iicns of iIc
Conpany's ficd asscis viz., Land (FrccIold 1 LcascIoldi, Acquisiiion and Dcvclopncni Epcnscs, Duildings
on sucI Land, Flais, Elccirical Insiallaiions, Plani and MacIincry and Failway Siding| wcrc rcvalucd on 30iI
Novcnlcr,1984, on 30iI Scpicnlcr,1991 and also on 30iI Scpicnlcr, 2001 (cccpi for Failway Sidingi aficr
considcring iIc following faciors.
x csiinaicd currcni narlci valuc pcriaining io Land (FrccIold1LcascIoldi, Acquisiiion and
Dcvclopncni Epcnscs, Duildings on sucI Land and Flais
x valucs of Elccirical Insiallaiions, Plani and MacIincry and Failway Siding (wIcn applicallci lascd on
iIcir currcni cosi of rcplaccncni
x adjusincnis for iIc condiiion, iIc siandard of nainicnancc, dcprcciaiion upio valuaiion daics, cic.

TIc rcsuliani rcvaluaiion surplus of Fs.1,011.07 lalIs, Fs.2,994.04 lalIs and Fs. 5,995.27 lalIs arising
fron iIc aforcsaid rcvaluaiions wcrc iransfcrrcd io Fcvaluaiion Fcscrvc in iIc Conpany's annual accounis for
iIc ycars 1983-84, 1990-91 and 2000-01 rcspcciivcly.
11.3 Dcprcciaiion for iIc ycar cndcd 31si MarcI, 2009 on iicns of ficd asscis rcvalucd includc an addiiional
cIargc of Fs. 278.33 lalIs (Prcvious Ycar - Fs. 279.39 lalIsi ovcr iIai calculaicd on original cosi ai raics
prcscrilcd undcr ScIcdulc XIV of iIc Conpanics Aci,1956 as ancndcd during 1993-94 rcprcscniing
dcprcciaiion on iIc incrcncnial anounis addcd on rcvaluaiion calculaicd ai iIc raics considcrcd applicallc
ly iIc valucrs.
11.4 Capiial Epcndiiurc in Progrcss includcs.
(ai Capiial Advanccs unsccurcd, considcrcd good - Fs. 11,105.45 lalIs (31si MarcI, 2008 - Fs.
4,738.05 lalIsi
(li Dorrowing cosi Fs. 2,938.02 lalIs (31si MarcI, 2008 - Fs. 555.34 lalIsi

12. Dciails of Dcfcrrcd Ta Assci1 Lialiliiy
considcrcd in iIcsc accounis .-
AV Dt31Vt MDUcK,
2009 RupHHV LQ
LDkKV
As ai31si MarcI, 2008
Fupccs in LalIs
Dcfcrrcd Ta Lialiliiy on accouni of -
- Dcprcciaiion 3,?1?.?2 4,046.75
- OiIcrs 13.3S 0.58
3,?31.10 4,047.33
Dcfcrrcd Ta Assci on accouni of -


- Iicns allowallc for ia purposc on payncni 3,S60.00 517.10
3,S60.00 517.10
1?1.10 3,530.23
13. According io iIc lciicrs of undcrialing givcn ly iIc Conpany io iIc conccrncd Financial Insiiiuiions,
iis invcsincnis in cquiiy sIarcs of Maplc Circuiis Liniicd and Norplc Oal India Liniicd cannoi lc
plcdgcd, cIargcd or oiIcrwisc cncunlcrcd or disposcd off wiiIoui iIcir prior conscni, during iIc
currcncy of iIc loan faciliiics granicd ly iIc Financial Insiiiuiions io iIc said conpanics.

Coniingcni Lialiliiics for .
AV Dt31Vt MDUcK,
2009 RupHHV LQ
LDkKV
As ai31si MarcI,
2008 Fupccs in
LalIs
(14.1i Ouisianding Danl Cuaraniccs cic.

3??.20

74.96
(14.2i Dills discounicd

1,923.90

-
(14.3i Cuaraniccs or Counicr Cuaraniccs or Counicr Indcnniiy
givcn ly iIc Conpany .
(ai On lcIalf of lodics corporaic and oiIcrs (oiIcr iIan
guaraniccs wIicI according io lcgal opinion arc no longcr
cnforccallc againsi iIc Conpanyi
- Linii

9.00

9.00
- Ouisianding

9.00

9.00
(li for rcpayncni of Housing Loan granicd ly Housing
Dcvclopncni Financc Corporaiion Lid. io cnployccs of iIc
Conpany

6.SS

8.90
(14.4i Clains againsi iIc Conpany noi aclnowlcdgcd as dclis .
(ai Inconc-ia naiicrs pcnding (oiIcr iIan naiicrs sci asidc for
rcasscssncnii

0.S?

301.54
(li Salcs Ta naiicrs
-

193.27
15. Prcniun on forcign ccIangc arising fron forward ccIangc coniraci io lc rccogniscd in iIc accounis of
fuiurc pcriods Fs. 248.30 lalIs(Prcvious Ycar - Fs. 2.53 lalIsi.
16. Earnings in Forcign EcIangc on Accouni of .
Epori Salcs (F.O.D. Valuci

2S,S66.?1

21,966.04
Carlon Crcdii

- 277.77
17. Capiial Conniincnis nci of advanccs Fs. 11,105.45 lalIs (31si MarcI, 2008 - Fs. 4,738.05 lalIsi| noi
providcd for as ai 31si MarcI, 2009 arc csiinaicd ai Fs. 10,806 lalIs (31.03.2008 Fs. 11,950 lalIsi





1S.1 RHcRQcLOLDtLRQ RI RpHQLQJ DQG cORVLQJ bDODQcHV RI tKH pUHVHQt YDOuH RI GHILQHG bHQHILt RbOLJDtLRQV :
Fupccs in LalIs
FuQGHG UQIuQGHG
GUDtuLty LHDYH EQcDVKmHQt MHGLcDO

AV Dt 31Vt
MDUcK,
2009
As
ai31si
MarcI,
2008
AV Dt31Vt
MDUcK, 2009
As ai31si
MarcI, 2008
AV Dt31Vt MDUcK,
2009
As ai31si MarcI,
2008
Opcning lalancc SS1.24 550.00 92.92 135.10 S3.03 44.91
Currcni Scrvicc
Cosi
36.20 34.41 63.0S 16.29 0.63 0.45
Inicrcsi cosi 41.6S 44.96 6.10 11.48 3.9S 3.78
Aciuarial (lossi 1
gain
14.S1 (6.11i 21.66 (42.76i 12.?S 4.65
(Dcncfiis paidi (S1.9S) (42.02i (23.2?) (27.19i 0.00 (0.76i
Closing lalancc 621.6S 581.24 160.49 92.92 ?0.42 53.03

1S.2 RHcRQcLOLDtLRQ RI RpHQLQJ DQG cORVLQJ bDODQcHV RI tKH IDLU YDOuH RI pODQ DVVHtV * :

Fupccs in LalIs

GUDtuLty
AV Dt31Vt MDUcK,
2009 As ai31si MarcI, 2008

Opcning lalancc S1S.9S 455.98
Epccicd rciurn on Plan Assci 41.2S 36.48
Aciuarial loss 1 (gaini (41.2S) (32.57i
Conpany's coniriluiion 10S.23 98.11
Dcncfiis paid (S1.9S) (42.02i
Closing lalancc S69.26 515.98

Consisiing Funds nainiaincd wiiI LIC. Aciual Fciurn iIcrcon awaiicd.




1S.3 AmRuQt UHcRJQLVHG LQ BDODQcH SKHHt : Fupccs in LalIs

FuQGHG UQIuQGHG

GUDtuLty LHDYH EQcDVKmHQt MHGLcDO

AV Dt As ai AV Dt As ai AV Dt As ai
31Vt MDUcK,
2009
31si
MarcI,
2008
31Vt
MDUcK,
2009
31si MarcI,
2008
31Vt
MDUcK,
2009
31si MarcI,
2008
Prcscni valuc of olligaiion 621.6S 581.24 160.49 92.92 ?0.42 53.03
Fair Valuc of Plan Assci S69.26 515.98
-

-

-

-
Nci Assci 1 (Lialiliiyi (S2.39) (65.26i (160.49) (92.92i (?0.42) (53.03i

1S.4 AmRuQt UHcRJQLVHG LQ PURILt DQG LRVV AccRuQt -
Fupccs in LalIs

GUDtuLty LHDYH EQcDVKmHQt MHGLcDO

YHDU
EQGHG Ycar Endcd YHDU EQGHG Ycar Endcd
YHDU
EQGHG
Ycar
Endcd

31Vt
MDUcK,
2009
31si MarcI,
2008
31Vt MDUcK,
2009
31si MarcI,
2008
31Vt
MDUcK,
2009
31si
MarcI,
2008
Currcni scrvicc cosi 36.20 34.41 63.0S 16.29 0.63 0.45
Inicrcsi cosi 41.6S 44.96 6.10 11.48 3.9S 3.78
Epccicd Fciurn on
Plan Assci
(41.2S) (36.48i - - - -
Aciuarial loss 1
(gaini
SS.?9 26.46 21.66 (42.76i 12.?S 3.89
Fccogniscd in Profii
and Loss Accouni
92.36 69.35 90.S4 (14.99i 1?.39 8.12
Undcr Coniriluiion io Providcni
Fund, Supcrannuaiion
Fund and Craiuiiy Fund
Salarics, Wagcs and Donus Lalour and Siaff
Wclfarc

1S.S PULQcLpDO ActuDULDO AVVumptLRQV uVHG -


YHDU EQGHG31Vt MDUcK,
2009
Ycar Endcd31si MarcI,
2008
Morialiiy Tallc LICI 1994-1996 LICI 1994-1996
Discouni raic ?.S0% 8.5%
Inflaiion raic S.00% 6.0%
Epccicd Fciurn on asscis S.00% 8.0%
Mcdical cosi ircnd raics S.00% 5.0%
Fornula uscd Projccicd Unii Crcdii MciIod
TIc csiinaics of fuiurc salary incrcasc considcrcd in iIc aciuarial valuaiion ialcs inio accouni faciors lilc
inflaiion, scnioriiy, pronoiion and oiIcr rclcvani faciors.



1S.6 EIIHct RI LQcUHDVH / GHcUHDVH RI RQH pHUcHQtDJH pRLQt LQ tKH DVVumHG mHGLcDO cRVt tUHQG UDtHV
RQ:

YHDU EQGHG 31Vt MDUcK, 2009 Ycar Endcd 31si MarcI, 2008
IQcUHDVH DHcUHDVH Incrcasc Dccrcasc
RupHHV LQ LDkKV Fupccs in LalIs
Aggrcgaic of currcni scrvicc cosi
and inicrcsi cosi
2.S 2.S 1.72 1.72
Accunulaicd Posi Enployncni
lcncfii olligaiion for ncdical cosi
0.33 0.33 0.13 0.13

18.7 As rcgards coniriluiion io iIc providcni fund nainiaincd wiiI scparaic Trusi, iIc Conpany's
Aciuary Ias ccriificd iIai iIc Trusi fund is adcquaic for disiriluiion of inicrcsi ai iIc raic currcnily
prcscrilcd ly iIc Covcrnncni and lascd on aciuarial valuaiion carricd oui in icrns of AS 15 no
addiiional coniriluiion io iIc fund is rcquircd fron iIc Conpany iowards any inadcquacy

18.8 For iIc Dcfincd Coniriluiion Plans anounis aggrcgaiing Fs. 196.24 lalIs Iavc lccn rccogniscd as
cpcnscs during iIc ycar (Prcvious Ycar - Fs. 187.31 lalIsi.
TIc coniriluiion io iIc Dcfincd Dcncfii Plans cpccicd io lc nadc ly iIc Conpany during iIc annual
pcriod lcginning aficr iIc lalancc sIcci daic is yci io lc rcasonally dcicrnincd.



19. SHJmHQt RHpRUtLQJ
(ai Infornaiion rclaiing io iIc iwo lusincss scgncnis, lcing carlon llacl and powcr Ias lccn discloscd as prinary
scgncnis.
(li Inicr-scgncni iransfcrs lcing powcr consuncd for nanufaciurc of carlon llacl arc lascd on pricc paid for powcr
purcIascd fron cicrnal sourccs.
(ciScgncni Fcvcnucs, Fcsulis and OiIcr Infornaiion .

BuVLQHVV SHJmHQt Fupccs in LalIs
YHDU EQGHG 31Vt MDUcK, 2009 Ycar Endcd 31si MarcI, 2008

CDUbRQ
BODck PRZHU TRtDO
Carlon
Dlacl Powcr Toial
(L) SHJmHQt RHYHQuH
Eicrnal Salcs

12?,20S.19

1,SS0.?9

12S,?SS.9S

114,983.75

1,493.53

116,477.28
Inicr-scgncni Salcs

-

?SS.02

?SS.02

-

895.94

895.94


12?,20S.19

2,33S.S1

129,S4?.00

114,983.75

2,389.47

117,373.22
(LL)SHJmHQt RHVuOtV

Profii lcforc inicrcsi and ia (S,32S.?1)

2,020.S9 (3,30S.12)

14,348.56

2,047.44

16,396.00
Unallocaicd (cpcnscsi1 inconc (ncii (3,4SS.S0) (3,172.86i
Inicrcsi (2,936.13) (1,944.70i
Profii lcforc ia (9,?30.0S) 11,278.44
(LLL) SHJmHQt AVVHtV

S6,3S3.S4

3,3S2.21

S9,?3S.?S

63,388.50

3,624.26

67,012.76
Unallocaicd

44,S09.?S

18,393.76


104,24S.S3

85,406.52
(LY) SHJmHQt LLDbLOLtLHV

S0,S11.4S

210.?0

S0,?22.1S

54,185.77

809.90

54,995.67
Unallocaicd

1,?04.S4

6,131.22


S2,426.99

61,126.89
(Y) CDpLtDO ExpHQGLtuUH

?SS.36

-

?SS.36

532.12

-

532.12
(YL) DHpUHcLDtLRQ

1,?64.22

199.4S

1,963.6?

1,814.10

199.49

2,013.59
(YLL) NRQ CDVK ExpHQVH RtKHU tKDQ
DHpUHcLDtLRQ (uQDOORcDtHG) S2.S4 67.02




GHRJUDpKLcDO SHJmHQt
YHDU EQGHG 31Vt MDUcK, 2009 Ycar Endcd 31si MarcI, 2008
WLtKLQ IQGLD
OutVLGH
IQGLD TRtDO WiiIin India
Ouisidc
India Toial
(L) SHJmHQt RHYHQuH 103,192.2?

2S,S66.?1

12S,?SS.9S

94,511.24

21,966.04

116,477.28
(LL) CDpLtDO ExpHQGLtuUH ?SS.36

-

?SS.36

532.12

-

532.12
(LLL) SHJmHQt AVVHtV 102,36?.41

1,6S?.1S

104,0S4.S9

81,207.79

4,198.73

85,406.52

20. Fclaicd Pariy Disclosurcs .
Nanc of iIc iransaciing rclaicd pariics, naiurc of rclaiionsIip,
iransaciions and ouisianding iicns.
Nanc of iIc Fclaicd Pariics Naiurc of FclaiionsIip
PIillips Carlon Dlacl Cyprus Holding Liniicd WIolly owncd Sulsidiary Conpany
PIillips Carlon Dlacl NciIcrlands Holding DV
WIolly owncd Sulsidiary Conpany of
PIillips Carlon Dlacl Cyprus Holding
Lid.
Mr. AsIol Coyal, Managing Dirccior Kcy Managcncni Pcrson
Transaciions wiiI rclaicd pariics rcfcrrcd io in alovc .
x Equiiy Coniriluiiion io iIc Sulsidiary Fs. 26.18 lalIs (31.03.2008 - Nil i.
x Fcnuncraiion paid1 payallc for iIc ycar cndcd 31si MarcI, 2009 Fs. 166.67 lalIs (Prcvious Ycar - Fs.
144.08 lalIsi
21. Pcnding conplciion of iIc rclcvani fornaliiics of iransfcr of ccriain asscis acquircd pursuani io iIc ScIcnc
of Analganaiion of Transnission Holdings Liniicd wiiI iIc Conpany in 2001-2002, sucI asscis rcnain
includcd in iIc lools of iIc Conpany undcr iIc nanc of iIc iransfcror conpany.
22. Epcnscs arc aficr adjusincni of anounis rcinlurscd io or ly iIc Conpany.
23. Inicrcsi cpcndiiurc is nci of Fs. 278.60 lalIs (Prcvious Ycar - Fs. 95.41 lalIsi lcing inicrcsi carncd on
Ficd Dcposiis and Margin Moncy Dcposiis Cross, Ta Dcducicd ai sourcc Fs. 63.13 lalIs (Prcvious Ycar - Fs.
21.62 lalIsi|
24. Fcni of Fs. 73.61 lalIs (Prcvious Ycar - Fs. 62.19 lalIsi rclaics io cancclallc opcraiing lcascs ialcn on or
aficr 1.04.2001. TIcsc lcasc arrangcncnis rangc fron 11 noniIs io 3 ycars and arc prinarily in rcspcci of
acconnodaiion for cnployccs, officcs, warcIouscs cic. and inicr alia includc cscalaiion clausc and opiion for
rcncwal.
25. In rcspcci of iIc invcsincnis, in iIc opinion of iIc Doard, iIc ycar - cnd dininuiion in valuc (csiinaicd io
lc in iIc rcgion of Fs. 1560.57 LalIs (31.03.2008 - Nil i is on accouni of icnporary narlci fcaiurcs and iIcsc
lcing long icrn invcsincnis, no provision Ias lccn dccncd ncccssary. TIcsc would, Iowcvcr, lc covcrcd
adcquaicly ly iIc Conpany's ycar cnd frcc rcscrvcs.
26. Prcvious Ycar's figurcs Iavc lccn rcgroupcd or rcarrangcd wIcrc considcrcd ncccssary.





CDVK FORZ StDtHmHQt IRU tKH yHDU HQGHG 31Vt MDUcK, 2009

YHDU EQGHG
31Vt MDUcK, 2009
RupHHV LQ ODkKV
Ycar Endcd
31si MarcI, 2008
Fupccs in lalIs
A. CDVK FORZ FURm OpHUDtLQJ ActLYLtLHV
Nci Profii lcforc iaaiion

(9,?30.0S)

11,278.44
Adjusincnis for.
Dcprcciaiion

1,963.6?

2,013.59
Loss on salc of ficd asscis (ncii

3?9.6S

39.63
Unrcaliscd (gaini 1 loss (ncii on forcign ccIangc fluciuaiion

201.09

443.76
Inconc fron Dividcnd

(1??.00)

(155.11i
Inicrcsi (Fcccivcd1 Fcccivallc on Inicr Corporaic Dcposiis cic.i

(1SS.29)

(78.45i
Profii (ncii on salc of Invcsincni

(1,113.31)

(5.94i
Inicrcsi (Paid1 Payallc on loans cici

2,936.13

1,944.70
Dad Dclis wriiicn off (ncii

4S.64

342.03
Provision for Douliful Dclis (ncii

36.31

113.70
Provision for dininuiion in valuc of invcsincnis

0.10

-
Anoriisaiion of payncnis undcr Voluniary Fciircncni ScIcncs

S2.S4

67.02


4,139.S6

4,724.93
OpHUDtLQJ PURILt bHIRUH WRUkLQJ CDpLtDO CKDQJHV

(S,S90.19)

16,003.37
Adjusincnis for.
Invcniorics

3,431.S0

(4,042.64i
Tradc and OiIcr Fcccivallcs

2,S94.?S

(1,059.09i
Tradc Payallcs

11,90S.92

(992.29i


1?,932.1?

(6,094.02i
CDVK GHQHUDtHG IURm OpHUDtLRQV

12,341.9S

9,909.35
Dircci Tacs Paid (including Ta Dcducicd ai Sourcci

(94?.S2)

(3,326.46i
Payncnis undcr Voluniary Fciircncni ScIcnc

(3?.20)

(51.80i
Nci CasI fron Opcraiing Aciiviiics

11,3S6.96

6,531.09

D. CDVK FORZ IURm IQYHVtLQJ ActLYLtLHV
Payncnis for ficd asscis

(24,34S.3S)

(10,920.21i
Salc procccds of ficd asscis

10?.S9

18.93
PurcIasc of Invcsincni

(S4,939.S3)

(38,775.68i
Invcsincni in PIillips Carlon Dlacl Cyprus Holdings Lid

(26.1S)

-


Salc of Invcsincni

SS,104.9S

38,781.62
Dividcnd rcccivcd fron Invcsincnis

1??.00

155.11
Inicr Corporaic Dcposiis givcn

(3,??0.00)

(1,000.00i
Inicr Corporaic Dcposiis rcaliscd

3,??0.00

1,132.75
Inicrcsi Fcccivcd OiIcrs

S.3S

139.36
Inicrcsi Fcccivcd on Inicr Corporaic Dcposiis cic.

141.49

122.71
NHt CDVK uVHG LQ IQYHVtLQJ ActLYLtLHV

(23,??4.9S)

(10,345.41i
C. CDVK FORZ IURm FLQDQcLQJ ActLYLtLHV
Alloincni noncy (including prcniuni rcccivcd

4,023.04

0.18
Procccds fron long icrn lorrowings

24,466.92

4,218.80
Procccds fron sIori icrn lorrowings

10,1?S.00

4,000.00
Fcdcnpiion of Dclcniurcs

-

(1,000.00i
Fcpayncni of long icrn lorrowings

(2,SS1.93)

(1,543.13i
Fcpayncni of sIori icrn lorrowings

(11,1?S.00)

(3,000.00i
Incrcasc 1 (Dccrcasci in casI crcdii faciliiics, icnporary

(?,343.93)

1,332.34
ovcrdrafi cic. fron lanls
Dividcnds paid (including ia on dividcndi

(1,1?2.4S)

(586.73i
Inicrcsi paid

(4,496.2S)

(2,317.46i
NHt CDVK uVHG LQ FLQDQcLQJ ActLYLtLHV

11,62S.40

1,104.00
Nci incrcasc in CasI and CasI Equivalcnis

(?92.62)

(2,?10.32)
Opcning CasI and CasI Equivalcnis

1,S06.09

4,216.41
Closing CasI and CasI Equivalcnis

?13.4?


1,S06.09
NRtHV:

1. TIc alovc CasI Flow Siaicncni Ias lccn prcparcd undcr iIc Indircci MciIod as sci oui in iIc
Accouniing Siandard 3 on CasI Flow Siaicncni.

2. CasI and CasI Flow Siaicncnis (rcfcr ScIcdulc 8 io Dalancc SIccii includc lalanccs of Fs.11.50
lalIs (Prcvious Ycar`s fig. 11.50 lalIsi wiiI scIcdulcd lanls on Margin Moncy1 Spccial Accouni, noi
availallc for inncdiaic1 rcady usc ly iIc Conpany.


3. Prcvious ycar`s figurcs Iavc lccn rcgroupcd or rcarrangcd, wIcrc considcrcd ncccssary.

TIis is iIc CasI Flow Siaicncni rcfcrrcd io in our rcpori of cvcn daic.

P. Law
Parincr
(McnlcrsIip No. 51790i
For and on lcIalf of
PFICE WATEFHOUSE,
CIaricrcd Accounianis.
Kollaia
28
iI
April, 2009

KausIil MulIcrjcc
Conpany Sccrciary


AsIol Coyal
Managing Dirccior

K. S. D. Sanyal
O. P. MalIoira
Dircciors


ANNEXURE - AUDITORS REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.03.200S


M1S.PFICE WATEFHOUSE.
CHAFTEFED ACCOUNTANTS

AUDITOR'S REPORT TO THE MEMBERS OF
PH1II1PS CARBON BIACK I1M13

1. Wc Iavc audiicd iIc aiiacIcd Dalancc SIcci of PIillips Carlon Dlacl Liniicd, as ai 31
si
MarcI 2008, and iIc
rclaicd Profii and Loss Accouni and CasI Flow Siaicncni for iIc ycar cndcd on iIai daic annccd iIcrcio,
wIicI wc Iavc signcd undcr rcfcrcncc io iIis rcpori. TIcsc financial siaicncnis arc iIc rcsponsililiiy of iIc
Conpany's nanagcncni. Our rcsponsililiiy is io cprcss an opinion on iIcsc financial siaicncnis lascd on
our audii.
2. Wc conducicd our audii in accordancc wiiI iIc audiiing siandards gcncrally acccpicd in India. TIosc
Siandards rcquirc iIai wc plan and pcrforn iIc audii io oliain rcasonallc assurancc aloui wIciIcr iIc
financial siaicncnis arc frcc of naicrial nissiaicncni. An audii includcs canining, on a icsi lasis, cvidcncc
supporiing iIc anounis and disclosurcs in iIc financial siaicncnis. An audii also includcs asscssing iIc
accouniing principlcs uscd and significani csiinaics nadc ly nanagcncni, as wcll as cvaluaiing iIc ovcrall
financial siaicncni prcscniaiion. Wc lclicvc iIai our audii providcs a rcasonallc lasis for our opinion.
3. As rcquircd ly iIc Conpanics (Audiior's Fcporii Ordcr, 2003, as ancndcd ly iIc Conpanics (Audiior's Fcporii
(Ancndncnii Ordcr, 2004, (iogciIcr 'iIc Ordcr'i issucd ly iIc Ccniral Covcrnncni of India in icrns of sul-
scciion (4Ai of Scciion 227 of 'TIc Conpanics Aci, 1956' of India (iIc 'Aci'i and on iIc lasis of sucI cIccls of
iIc lools and rccords of iIc Conpany as wc considcrcd appropriaic and according io iIc infornaiion and
cplanaiions givcn io us, wc furiIcr rcpori iIai.
3.1 (ai TIc Conpany Ias nainiaincd propcr rccords sIowing full pariiculars including quaniiiaiivc dciails
and siiuaiion of ficd asscis.
(li TIc ficd asscis Iavc lccn pIysically vcrificd ly iIc nanagcncni during iIc ycar and no naicrial
discrcpancics lciwccn iIc lool rccords and iIc pIysical invcniory Iavc lccn noiiccd. In our
opinion, iIc frcqucncy of vcrificaiion is rcasonallc.
(ci In our opinion and according io iIc infornaiion and cplanaiions givcn io us, a sulsianiial pari of
ficd asscis Ias noi lccn disposcd of ly iIc Conpany during iIc ycar.
3.2 (ai TIc invcniory (ccluding siocls wiiI iIird pariicsi Ias lccn pIysically vcrificd ly iIc nanagcncni
during iIc ycar. In rcspcci of invcniory lying wiiI iIird pariics, iIcsc Iavc lccn confirncd ly
iIcn. In our opinion, iIc frcqucncy of vcrificaiion is rcasonallc.
(li In our opinion, iIc proccdurcs of pIysical vcrificaiion of invcniory followcd ly iIc nanagcncni arc
rcasonallc and adcquaic in rclaiion io iIc sizc of iIc Conpany and iIc naiurc of iis lusincss.
(ci On iIc lasis of our caninaiion of iIc invcniory rccords, in our opinion, iIc Conpany Ias
nainiaincd propcr rccords of invcniory. TIc discrcpancics noiiccd on pIysical vcrificaiion of
invcniory as conparcd io iIc lool rccords wcrc noi naicrial.
3.3 (ai TIc Conpany Ias noi granicd any loans, sccurcd or unsccurcd, io conpanics, firns or oiIcr
pariics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci. Accordingly, iIc
paragrapIs 4(iiii (li, 4(iiii (ci and 4(iiii (di of iIc Ordcr arc noi applicallc.

(li TIc Conpany Ias noi ialcn any loans, sccurcd or unsccurcd, fron conpanics, firns or oiIcr
pariics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci. Accordingly, iIc
paragrapIs 4(iiii (fi and 4(iiii (gi of iIc Ordcr arc noi applicallc.

3.4 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIcrc is an adcquaic
inicrnal conirol sysicn conncnsuraic wiiI iIc sizc of iIc Conpany and iIc naiurc of iis lusincss for
iIc purcIasc of invcniory, ficd asscis and for iIc salc of goods. TIc Conpany Ias noi providcd any
scrvicc during iIc ycar. FuriIcr, on iIc lasis of our caninaiion of iIc lools and rccords of iIc
Conpany, and according io iIc infornaiion and cplanaiions givcn io us, wc Iavc nciiIcr conc across
nor Iavc lccn inforncd of any coniinuing failurc io corrcci najor wcalncsscs in iIc aforcsaid inicrnal
conirol sysicn.
3.5 According io iIc infornaiion and cplanaiions givcn io us, iIcrc Iavc lccn no coniracis or arrangcncnis
rcfcrrcd io in Scciion 301 of iIc Aci during iIc ycar io lc cnicrcd in iIc rcgisicr rcquircd io lc
nainiaincd undcr iIai Scciion. Accordingly, conncniing on iransaciions nadc in pursuancc of sucI
coniracis or arrangcncnis docs noi arisc.
3.6 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIc Conpany Ias conplicd
wiiI iIc dircciivcs issucd ly Fcscrvc Danl of India and iIc provisions of Scciions 58A and 58AA of iIc


Aci or any oiIcr rclcvani provisions of iIc Aci and iIc Conpanics (Acccpiancc of Dcposiisi Fulcs, 1975
wiiI rcgard io iIc dcposiis acccpicd fron iIc pullic. According io iIc infornaiion and cplanaiions givcn
io us , no Ordcr Ias lccn passcd ly iIc Conpany Law Doard or Naiional Conpany Law Trilunal or
Fcscrvc Danl of India or any Couri or any oiIcr Trilunal on iIc Conpany in rcspcci of iIc aforcsaid
dcposiis.
3.7 In our opinion, iIc Conpany Ias an inicrnal audii sysicn conncnsuraic wiiI iis sizc and naiurc of iis
lusincss.
3.8 Wc Iavc lroadly rcvicwcd iIc lools of accouni nainiaincd ly iIc Conpany in rcspcci of producis
wIcrc, pursuani io iIc Fulcs nadc ly iIc Ccniral Covcrnncni of India nainicnancc of cosi rccords Ias
lccn prcscrilcd undcr clausc (di of sul-scciion (1i of Scciion 209 of iIc Aci and arc of iIc opinion iIai
prina facic, iIc prcscrilcd accounis and rccords Iavc lccn nadc and nainiaincd. Wc Iavc noi, Iowcvcr,
nadc a dciailcd caninaiion of iIc rccords wiiI a vicw io dcicrninc wIciIcr iIcy arc accuraic or
conplcic.
3.9 (ai According io iIc infornaiion and cplanaiions givcn io us and iIc rccords of iIc Conpany
canincd ly us, in our opinion, iIc Conpany is rcgular in dcposiiing iIc undispuicd siaiuiory
ducs including providcni fund, invcsior cducaiion and proicciion fund, cnployccs' siaic insurancc,
inconc-ia, salcs-ia, wcaliI ia, scrvicc ia, cusions duiy, ccisc duiy, ccss and oiIcr naicrial
siaiuiory ducs as applicallc wiiI iIc appropriaic auiIoriiics.
(li According io iIc infornaiion and cplanaiions givcn io us and iIc rccords of iIc Conpany
canincd ly us, iIc pariiculars of ducs of inconc-ia, salcs ia, wcaliI ia, scrvicc ia, cusions
duiy, ccisc duiy and ccss as ai 31
si
MarcI 2008 wIicI Iavc noi lccn dcposiicd on accouni of a
dispuic arc as follows .
Nanc of
iIc Siaiuc
Naiurc of iIc Ducs Anouni
(Fupccs in
LalIsi
Forun wIcrc iIc
Dispuic is
Pcnding
Kcrala
Salcs Ta
Aci, 1963
Inicrcsi on dclaycd payncni
of Salcs Ta
193.27 Suprcnc Couri of
India


3.10 TIc Conpany Ias no accunulaicd losscs as ai 31
si
MarcI 2008 and ii Ias noi incurrcd any casI
losscs in iIc financial ycar cndcd on iIai daic or in iIc inncdiaicly prcccding financial ycar.

3.11 According io iIc infornaiion and cplanaiions givcn and iIc rccords of iIc Conpany canincd ly us,
iIc Conpany Ias noi dcfaulicd in rcpayncni of ducs io any financial insiiiuiion or lanl or dclcniurc
Ioldcrs as ai iIc Dalancc SIcci daic.

3.12 TIc Conpany Ias noi granicd any loans and advanccs on iIc lasis of sccuriiy ly way of plcdgc of
sIarcs, dclcniurcs and oiIcr sccuriiics.

3.13 TIc provisions of any spccial siaiuic applicallc io cIii fund1 nidIi 1nuiual lcncfii fund1 sociciics arc
noi applicallc io iIc Conpany.

3.14 In our opinion, iIc Conpany is noi a dcalcr or iradcr in sIarcs, sccuriiics, dclcniurcs and oiIcr
invcsincnis.

3.15 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIc Conpany Ias noi
givcn any guaranicc for loans ialcn ly oiIcrs fron lanls or financial insiiiuiions during iIc ycar.

3.16 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, on an ovcrall lasis, iIc
icrn loans Iavc lccn applicd for iIc purposcs for wIicI iIcy wcrc oliaincd.

3.17 On iIc lasis of an ovcrall caninaiion of iIc Dalancc SIcci of iIc Conpany, in our opinion and
according io iIc infornaiion and cplanaiions givcn io us, iIcrc arc no funds raiscd on a sIori-icrn
lasis wIicI Iavc lccn uscd for long icrn invcsincni.

3.18 TIc Conpany Ias noi nadc any prcfcrcniial alloincni of sIarcs io pariics and conpanics covcrcd in
iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci during iIc ycar.

3.19 TIc Conpany Ias rcdccncd during iIc ycar iIc dclcniurcs issucd in carlicr ycar and Ias no
dclcniurcs ouisianding ai iIc ycar-cnd.



3.20 TIc Conpany Ias noi rcccnily raiscd any noncy ly pullic issuc.

3.21 During iIc coursc of our caninaiion of iIc lools and rccords of iIc Conpany, carricd oui in
accordancc wiiI iIc gcncrally acccpicd audiiing praciiccs in India, and according io iIc infornaiion
and cplanaiions givcn io us, wc Iavc nciiIcr conc across any insiancc of fraud on or ly iIc
Conpany, noiiccd or rcporicd during iIc ycar, nor Iavc wc lccn inforncd of sucI casc ly iIc
nanagcncni.

4. FuriIcr io our conncnis in paragrapI 3 alovc, wc rcpori iIai.

(ai Wc Iavc oliaincd all iIc infornaiion and cplanaiions, wIicI io iIc lcsi of our lnowlcdgc and lclicf
wcrc ncccssary for iIc purposcs of our audii;

(li In our opinion, propcr lools of accouni as rcquircd ly law Iavc lccn lcpi ly iIc Conpany so far as
appcars fron our caninaiion of iIosc lools;

(ci TIc Dalancc SIcci, Profii and Loss Accouni and CasI Flow Siaicncni dcali wiiI ly iIis rcpori arc in
agrccncni wiiI iIc lools of accouni;

(di In our opinion, iIc Dalancc SIcci, Profii and Loss Accouni and CasI Flow Siaicncni dcali wiiI ly iIis
rcpori conply wiiI iIc accouniing siandards rcfcrrcd io in sul-scciion (3Ci of Scciion 211 of iIc Aci;

(ci On iIc lasis of wriiicn rcprcscniaiions rcccivcd fron iIc dircciors, as on 31
si
MarcI 2008 and ialcn
on rccord ly iIc Doard of Dircciors, nonc of iIc dircciors is disqualificd as on 31
si
MarcI 2008 fron
lcing appoinicd as a dirccior in icrns of clausc (gi of sul-scciion (1i of Scciion 274 of iIc Aci;

(fi In our opinion and io iIc lcsi of our infornaiion and according io iIc cplanaiions givcn io us, iIc
said financial siaicncnis iogciIcr wiiI iIc noics iIcrcon and aiiacIcd iIcrcio givc in iIc prcscrilcd
nanncr iIc infornaiion rcquircd ly iIc Aci, and givc a iruc and fair vicw in conforniiy wiiI iIc
accouniing principlcs gcncrally acccpicd in India.
(ii in iIc casc of iIc Dalancc SIcci, of iIc siaic of affairs of iIc Conpany as ai 31
si
MarcI 2008;
(iii in iIc casc of iIc Profii and Loss Accouni, of iIc profii for iIc ycar cndcd on iIai daic; and
(iiii in iIc casc of iIc CasI Flow Siaicncni, of iIc casI flows for iIc ycar cndcd on iIai daic.

P. Law
Pu)tnc)
(McnlcrsIip nunlcr 51790i
for and on lcIalf of
PFICE WATEFHOUSE,
Kollaia, 28
iI
April, 2008 CIaricrcd Accounianis.




BDODQcH SKHHt AV OQ 31
Vt
DHcHmbHU,200S AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007
ScKHGuOH
RupHHV LQ LDkKV Fupccs in LalIs
SOURCES OF FUNDS
SHAFEHOLDEFS' FUNDS
SIarc Capiial 1 2,S2S.2S 2,525.23
Convcriillc Warranis issucd and alloiicd
(Noic 2 on ScIcdulc 18i 44?.00 447.00
Fcscrvcs and Surplus 2 21,30?.3S 13,608.20

24,2?9.63 16,580.43
LOAN FUNDS 3
Sccurcd Loans 26,4S?.96 23,154.47
Unsccurcd Loans 2,SS3.41 1,838.21
29,041.3? 24,992.68
Dcfcrrcd Ta Lialiliiy (Ncii Noic 12 on ScIcdulc 18| 3,S30.23 4,336.65
S6,SS1.23 45,909.76
APPLICATION OF FUNDS
FIXED ASSETS 4
Cross Dlocl 4S,06S.6S 44,717.03
Lcss. Dcprcciaiion 20,S?S.23 18,686.55
Nci Dlocl 24,490.4S 26,030.48
Capiial Epcndiiurc In Progrcss (Noic 11.4 on ScIcdulc 18i 13,0S1.04 2,107.61
3?,S41.49 28,138.09
INVESTMENTS 5 2,S0S.S2 2,805.52

CUFFENT ASSETS, LOANS AND ADVANCES
Invcniorics 6 1S,S2S.4? 11,485.83
Sundry Dcliors 7 21,?S6.?6 23,366.55
CasI and Danl Dalanccs 8 1,S06.09 4,216.41
OiIcr Currcni Asscis 9 4,633.00 2,463.04
Loans and Advanccs 10 1,S4?.1S 1,402.88
44,9?1.S0 42,934.71
Lcss.
CUFFENT LIADILITIES AND PFOVISIONS
Lialiliiics 11 2?,3?3.49 27,480.89
Provisions 12 1,1S1.S0 590.90
2S,SSS.29 28,071.79
NET CUFFENT ASSETS 16,416.21 14,862.92
MISCELLANEOUS EXPENDITUFE (TO THE EXTENT
NOT WFITTEN OFF OF ADJUSTEDi
Payncnis undcr Voluniary Fciircncni ScIcncs SS.01 103.23
S6,SS1.23 45,909.76
NOTES ON ACCOUNTS 18



PURILt DQG LRVV AccRuQt IRU tKH yHDU HQGHG 31Vt MDUcK, 200S

YHDU EQGHG
31Vt
MDUcK,200S
RupHHV LQ
LDkKV
Ycar Endcd
31si
MarcI,2007
Fupccs in
LalIs
INCOME VcKHGuOH
Salcs - Carlon Dlacl

114,9S3.?S

111,276.24
Lcss . Ecisc Duiy

13,1S9.12

12,469.05


101,S24.63

98,807.19
Salcs - Powcr

1,493.S3

1,054.62
OiIcr Inconc 13

612.22

408.69
Closing Siocl of FinisIcd
Coods



2,114.92

1,399.13


106,04S.30 101,669.63
EXPENDITURE



Opcning Siocl of
FinisIcd Coods

1,399.13

1,998.35
Faw Maicrials
Consuncd 14

64,066.26

67,262.00
Epcnscs 15

2S,343.1S

22,657.89
Dcprcciaiion

2,013.S9

2,036.48
Inicrcsi (Noic 23 on
ScIcdulc 18i



1,944.?0

3,260.27


94,?66.S6 97,214.99
PFOFIT DEFOFE
TAXATION

11,2?S.44 4,454.64
Provision for Taaiion

2,34?.S9 2,101.44
PFOFIT AFTEF
TAXATION 16

S,930.SS 2,353.20
Dalancc lrougIi forward
fron prcvious ycar



3,SS4.4S 1,999.18
Profii availallc for
Appropriaiion



12,S1S.33 4,352.38
Proposcd Dividcnd

1,010.13 505.06
Ta on Proposcd
Dividcnd

1?1.6? 85.84


11,333.S3 3,761.48
Transfcrrcd io Ccncral
Fcscrvc



900.00 177.00
Dalancc Carricd io
Dalancc SIcci (ScIcdulc
2i

10,433.S3 3,584.48
Earnings pcr SIarc (Fs.i 17
- Dasic 3S.3? 11.75
- Diluicd 34.19 11.47
Noics on accounis 18




ScKHGuOHV IRUmLQJ pDUt RI tKH BDODQcH SKHHt
AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007
SCHEDULE 1 - SHARE CAPITAL RupHHV LQ LDkKV Fupccs in LalIs
AUTHOFISED
31,500,000 Equiiy SIarcs of Fs.101- cacI 3,1S0.00 3,150.00

ISSUED, SUDSCFIDED AND PAID UP
17,213,779 Equiiy SIarcs of Fs. 101- cacI 1,?21.3S 1,721.38
fully paid up in casI (Noic 1 lclowi
Lcss . Alloincni Moncy rcccivallc 0.0S 0.10

1,?21.30 1,721.28
3,692,750 Equiiy SIarcs of Fs.101- cacI
alloiicd as fully paid up lonus
sIarcs ly capiialisaiion of
SIarc Prcniun and
Fcvcnuc Fcscrvc (Noic 2 lclowi 369.2S 369.28

4,346,667 Equiiy SIarcs of Fs.101- cacI fully 434.6? 434.67
paid up oiIcr iIan casI
2,S2S.2S 2,525.23
Noics.
1. Alloincni of 1,823 SIarcs is pcnding againsi FigIis issuc nadc during 1993-94.

2. Of iIc 3,692,750 SIarcs, 48 SIarcs Iavc noi lccn issucd io iIc conccrncd non-rcsidcni sIarcIoldcrs pcnding
approval of iIc Fcscrvc Danl of India.
SCHEDULE 2 - RESERVES AND SURPLUS AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
Fcscrvcs
Sccuriiics Prcniun
Dalancc as pcr lasi Accouni 6,644.6? 2,444.14
Add. Fcccivcd during iIc ycar 0.16 4,200.53
(Noic 1 lclowi 6,644.S3 6,644.67

Capiial Fcscrvc 1S6.S1 156.81

Dclcniurc Fcdcnpiion Fcscrvc
Dalancc as pcr lasi Accouni 312.S0 312.50
Lcss. Transfcrrcd io Ccncral Fcscrvc 312.S0 -
( Noic 2 lclowi - 312.50
Ccncral Fcscrvc
Dalancc as pcr lasi Accouni 2,909.?4 2,732.74
Lcss. Transfcr io Posi Enployncni Mcdical Dcncfiis Lialiliiy 29.64
(Noic 18.1 on ScIcdulc 18i
Lcss. Transfcr io Craiuiiy Lialiliiy 20.39 -
(Noic 18.1 on ScIcdulc 18i
2,SS9.?1 2,732.74

Add. Transfcr fron Dclcniurc Fcdcnpiion Fcscrvc 312.S0 -

Add. Transfcr fron Profii and Loss Accouni 900.00 177.00
4,0?2.21 2,909.74
Surplus
Profii and Loss Accouni 10,433.S3 3,584.48

21,30?.3S 13,608.20
Noics .
1. Nci of alloincni noncy rcccivallc on accouni of SIarc Prcniun Fs 0.66 lalI (31.03.2007 - Fs 0.82
lalIi.
2. Wriiicn lacl on rcdcnpiion of dclcniurcs (Noic 1 on ScIcdulc 3i.




ScKHGuOHV IRUmLQJ pDUt RI tKH BDODQcH SKHHt
SCHEDULE 3 - LOAN FUNDS AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007

SECURED LOANS RupHHV LQ LDkKV Fupccs in LalIs


Dclcniurcs-
8.60% Fcdccnallc Non-Convcriillc Dclcniurcs - 1,000.00
(Noic 1 lclowi

Fron Danls (Noic 2 lclowi

- Worling Capiial Dcnand Loan 4,023.4S 1,200.00

- CasI Crcdii1Danl Ovcrdrafi faciliiics 3,S9S.69 4,837.44

-Forcign Currcncy Non-Fcpairiallc Loans - 771.77

- Epori Pacling Crcdii Loans1Posi SIipncni Dcnand Loans againsi
Eporis

2,9?2.S3

2,687.71

Inicrcsi accrucd and duc 13.04 6.96

Tcrn Loans fron Danls (Noic 3 lclowi 1S,S00.S2 12,590.01

- Inicrcsi accrucd and duc 4S.?? 48.84

VcIiclc Loans fron Danls (Noic 4 lclowi 0.36 11.74

26,4S?.96 23,154.47

UNSECURED LOANS

Loan fron Danl -SIori icrn 1,000.00 -

Dcalcrs Sccuriiy Dcposiis 2S.00 8.00

Salcs Ta Dcfcrrcd Loans (Noic 5 lclowi 1,3S4.43 1,453.12

Eicrnal Conncrcial Dorrowing (Noic 6 lclowi 1?3.9S 377.09

2,SS3.41 1,838.21
SCHEDULE 3 - LOAN FUNDS
NRtHV
1. 8.60% Sccurcd Fcdccnallc Non-Convcriillc Dclcniurcs (privaicly placcd, sccurcd ly way of rcgisicrcd norigagc
of iIc innovallc propcriy in iIc Kalol sul-disirici in iIc Siaic of Cujaraii Iavc lccn rcdccncd ai par on 31si
Dccnlcr, 2007.
2 . CasI Crcdii1 Danl Ovcrdrafi faciliiics1 Loans - undcr consoriiun arrangcncnis arc wiiI Danl of Daroda,
AllaIalad Danl , Epori and Inpori Danl of India, ICICI Danl Lid., Siaic Danl of Dilancr & Jaipur and Ciiilanl
NA ai Kollaia ; Siaic Danl of India, Indian Ovcrscas Danl and Siaic Danl of Travancorc ai KocIi ; Syndicaic
Danl and Fcdcral Danl ai Munlai. TIc alovc CasI Crcdii1 Danl Ovcrdrafi faciliiics1Loans arc sccurcd ly way
of IypoiIccaiion in favour of iIc said lanls as and ly way of firsi cIargc, ranling pu)-pussu anong iIcnsclvcs,
of iIc Conpany's cisiing and fuiurc siocl of Faw Maicrials, FinisIcd and Scni FinisIcd Coods, Consunallc
Siorcs and Sparcs, including Siocl in Transii and in iIc posscssion of any iIird pariy, prcscni and fuiurc Dool
dclis, Monics Fcccivallc, Clains, cic. Icld ly any iIird pariy io iIc ordcr of iIc disposiiion of iIc conpany
ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngal and also ly a pu)-
pussu sccond cIargc crcaicd on iIc ficd asscis of iIc Conpany ai Durgapur in Wcsi Dcngal (ccluding iIosc
rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngali, Palcj in Cujarai and Karinugal in
KocIi .




SCHEDULE 3 - LOAN FUNDS (CRQtG.)
NRtHV
3 . Tcrn Loans fron Danls .
Tcrn Loans fron Danls oiIcr iIan loan for 30MW Co-gcncraiion Powcr Plani ai Durgapur arc sccurcd ly a pu)-
pussu firsi cIargc lasis on all iIc innovallc propcriics of iIc Conpany siiuaicd ai Durgapur in Wcsi Dcngal
(ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngali, Palcj in Cujarai and
Karinugal in KocIi, and also on iIc Conpany's novallc Plani and MacIincry, MacIincry Sparcs, Tools and
Acccssorics and oiIcr novallc propcriics loiI prcscni and fuiurc ccluding iIosc rclaiing io 30 MW Co-
gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngal. TIc Tcrn Loan fron Danls arc also sccurcd ly pu)-pussu
sccond cIargc on iIc Conpany's cisiing and fuiurc siocl of Faw Maicrials, FinisIcd and Scni FinisIcd Coods,
Consunallc Siorcs and Sparcs, including Siocl in Transii and in iIc posscssion of any iIird pariy, prcscni and
fuiurc Dool Dclis, Monics Fcccivallc, Clains, cic. Icld ly any iIird pariy io iIc ordcr or iIc disposiiion of iIc
Conpany ccluding iIosc rclaiing io 30 MW Co-gcncraiion Powcr Plani ai Durgapur in Wcsi Dcngal.
Tcrn Loan for 30 MW Co-gcncraiion Powcr Plani ai Durgapur is sccurcd ly an cclusivc cIargc on iIc innovallc
and novallc propcriics pcriaining io iIc said Co-gcncraiion Powcr Plani.
4 . VcIiclc loans fron Danls arc Sccurcd ly way of IypoiIccaiion of iIc vcIiclcs financcd ly sucI loans.
5 . Salcs Ta Dcfcrrcd Loans1 Ouipui Ta Dcfcrrcd Loans allowcd ly iIc Siaic Covcrnncnis of Wcsi Dcngal and
Kcrala arc
rcpayallc in siipulaicd pcriodic insiallncnis conncncing fron Augusi 2006 (Wcsi Dcngali and July 2007
(Kcralai
rcspcciivcly, aggrcgaic anouni of sucI insiallncnis rcpayallc wiiIin onc ycar is Fs. 230.29 lalIs. (Prcvious Ycar
-Fs 186.17 lalIsi
6 . Eicrnal Conncrcial Dorrowing rcpayallc wiiIin onc ycar Fs.173.98 lalIs (Prcvious Ycar - Fs.188.55 lalIsi

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AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007
SCHEDULE S - INVESTMENTS (LRQJ-THUm)
[NRtH 1(YL) RQ ScKHGuOH 1S] RupHHV LQ LDkKV Fupccs in LalIs

TFADE -
Ouoicd
4,155,743 Fully paid Equiiy SIarcs of Fs 101- cacI in CEAT Lid (Noic 3 lclowi 2,614.91 2,614.91
(31.03.2007 - 5,540,991i
Unquoicd (Noic 3 lclowi
1,385,247 Fully paid Equiiy SIarcs of Fs 101- cacI in CHI Invcsincnis Lid. - -
OTHEF THAN TFADE -
Ouoicd
600,000 Fully paid Equiiy SIarcs of Fs.101- cacI in Norplc Oal India Lid. 60.00 60.00
1,910,000 Fully paid Equiiy SIarcs of Fs.101- cacI in Maplc Circuiis Lid. 191.01 191.01
17,417 6.75% Ta Frcc US-64 Donds of Fs.1001- cacI in Unii Trusi of India 21.09 21.09
77,000 Fully paid Equiiy SIarcs of Fs 101- cacI in CESC Lid. 1S0.1S 150.15
7,186 Fully paid Equiiy SIarcs of Fs.101- cacI in Danl of Daroda 16.S3 16.53
11,400 Fully paid Equiiy SIarcs of Fs.101- cacI in Indian Ovcrscas Danl 2.?4 2.74

441.S2 441.52
Unquoicd
50 Fully paid Prcfcrcncc SIarcs of Fs.1001- cacI in Norplc Oal India Lid. 0.0S 0.05
50 Fully paid Prcfcrcncc SIarcs of Fs.1001- cacI in Maplc Circuiis Lid. 0.0S 0.05
0.10 0.10
3,0S6.S3 3,056.53

Lcss . Provision for dininuiion in valuc of Invcsincnis 2S1.01 251.01

2,S0S.S2 2,805.52



Noics. (1i Aggrcgaic anouni of Ouoicd Invcsincnis . 2,S0S.42 2,805.42
Marlci valuc (ccluding Norplc Oal India Lid. and Maplc Circuiis Lid.
in alscncc of any currcni quoiaiion i Fs. 4,910.75 lalIs
( 31.03.2007 - Fs. 6,310.72 lalIs i

(2i Aggrcgaic anouni of Unquoicd Invcsincnis (Noic 3 lclowi 0.10 0.10
2,S0S.S2 2,805.52


(3i Pursuani io iIc ScIcnc of Arrangcncni lciwccn CEAT Lid. and CHI Invcsincnis Lid.-
(ai Sulscrilcd and Paid up sIarc capiial of CEAT Lid. Ias lccn rcduccd and in conscqucncc, iIc Conpany's Iolding of
5,540,991 Equiiy sIarcs of Fs. 101- cacI in CEAT Lid. siands rcduccd io 4,155,743 Equiiy sIarcs of Fs. 101- cacI,
fully paid up;
(li 1,385,247 Equiiy sIarcs of Fs. 101- cacI, fully paid up, in CHI Invcsincnis Lid. Iavc lccn alloiicd io iIc Conpany.

TIcrc lcing no cosi incurrcd ly iIc Conpany for acquiring iIcsc sIarcs, no valuc Ias lccn assigncd io iIis invcsincni.
TIcsc sIarcs Iavc lccn sincc quoicd in iIc Donlay and Naiional Siocl EcIangcs.
(4i Uniis of Muiual Funds purcIascd and sold during iIc ycar Nunlcr of Dool Valuc
uniis Fupccs in lalIs
Dirla CasI Plus - Insiiiuiional - Daily Dividcnd- Fcinvcsincni 6,021,334 650.44
Dirla CasI Plus - Insiiiuiional Prcniun - Daily Dividcnd - Fcinvcsincni 72,726,004 7,286.78
Dirla CasI Plus - Insiiiuiional Prcniun - CrowiI 1,394,700 175.00
Fcliancc Floaiing Faic Fund - Daily Dividcnd Fcinvcsincni Plan 22,374,082 2,253.00
Fcliancc Liquidiiy Fund- Daily Dividcnd Fcinvcsincni Opiion 82,900,869 8,292.66
UTI CasI Plan Insiiiuiional - CrowiI Opiion 266,430 3,475.00
UTI Liquid CasI Plan Insiiiuiional - Daily Inconc - Fcinvcsincni 1,210,273 12,338.07
DSP Mcrrill LyncI Liquid Plus Daily Dividcnd

50,025 500.44
DSP Mcrrill LyncI CasI Plus - Insiiiuiional - Daily Dividcnd 190,133 1,901.52
DSP Mcrrill LyncI Liquid Plus Insiiiuiional Plan - Daily Dividcnd 190,204 1,902.77






AV Dt31Vt
MDUcK, 200S
RupHHV LQ
LDkKV
AV Dt31Vt
MDUcK, 200?
Fupccs in LalIs
SCHEDULE 6 - INVENTORIES[NRtH 1(YLL) RQ ScKHGuOH 1S]

Siorcs and Sparcs 1,321.?S 1,043.46
Faw Maicrials 12,091.S0 9,043.24
FinisIcd Coods 2,114.92 1,399.13
1SS2S.4? 11485.83

SCHEDULE ? - SUNDRY DEBTORS (UNSECURED)

Dclis ouisianding for a pcriod ccccding
si noniIs
Considcrcd Cood 1,2S4.S0 4,446.29

Considcrcd Douliful 1,1??.40 1,063.70
Lcss . Provision 1,1??.40 - 1,063.70 -
1,2S4.S0 4,446.29

OiIcr Dclis - Considcrcd Cood 20,S02.26 18,920.26
21,?S6.?6 23,366.55

SCHEDULE S - CASH AND BANK BALANCES

CasI on Hand 4.12 2.42
Fcniiianccs in Transii 1,392.69 909.16
WiiI ScIcdulcd Danls.
- On Currcni Accounis 6S.S4 259.23
- On Unpaid and Unclaincd Dividcnd Accounis 34.?4 30.57
(as pcr conira ScIcdulc 11i
- On Margin Moncy Accouni againsi 9.00 3,015.03
Lciicr of Crcdii1Cuaranicc

1,S06.09 4,216.41
SCHEDULE 9 - OTHER CURRENT ASSETS

Considcrcd good

Dalanccs wiiI Cusions, Pori Trusi and Ecisc AuiIoriiics cic. 2,SS0.31 809.47

OiIcr Dcposiis
including Fs 0.80 lalI, (31.03.2007 - Fs. 0.80 lalIi 92?.SS 643.10
in iIc forn of Naiional Savings Ccriificaic II Scrics|

Accruals undcr Duiy Ecnpiion ScIcnc pcriaining io cporis 1 9S2.S1 838.14
dccncd cporis

Accrucd lcncfii undcr Duiy Drawlacl 172.33 172.33

4,633.00 2,463.04
SCHEDULE 10 - LOANS AND ADVANCES
Unsccurcd - Considcrcd good
Advanccs rccovcrallc in casI or in lind or
for valuc io lc rcccivcd .
Inicrcorporaic Dcposiis (including accrucd inicrcsii - 199.37
OiIcrs (Noic 10 on ScIcdulc 18i ?42.2S 583.67
Advancc payncni of Tacs, cic.
nci of Provision for Taaiion Fs. 6,883.22 lalIs,
(31.03.2007 - Fs. 3,754.97 lalIsi| S04.90 619.84

1,S4?.1S 1,402.88




SCHEDULE 11 - LIABILITIES
AV Dt31Vt
MDUcK, 200S
RupHHV LQ
LDkKV
AV Dt31Vt
MDUcK, 200?
RupHHV LQ
LDkKV

Acccpianccs - 209.67

Sundry Crcdiiors
-Ducs io Micro Enicrpriscs and Snall Enicrpriscs (Noic 1 lclowi 21.1S 86.73

- OiIcrs 26,933.12 27,038.03
26,9S4.30 27,124.76

Invcsior Educaiion and Proicciion Fund sIall lc crcdiicd
ly iIc following anounis (Noic 2 lclowi .
- Unpaid dividcnd (as pcr conira ScIcdulc 8i 34.?4 30.57
- Unpaid naiurcd dcposiis ?.34 10.76

Inicrcsi Accrucd lui noi duc on lorrowings 3??.11 105.13

2?,3?3.49 27,480.89
Noics .
1. Fcprcscnis anouni duc io nicro cnicrpriscs and snall cnicrpriscs (idcniificd on iIc lasis of infornaiion nadc
availallc during iIc ycar ly sucI cnicrpriscs io iIc Conpanyi. No lalancc is ouisianding for 45 days or norc.
No inicrcsi in icrns of Micro, Snall and Mcdiun Enicrpriscs Dcvclopncni Aci, 2006 Ias ciiIcr lccn paid or
accrucd during iIc ycar and rcnaining unpaid as ai 31si MarcI, 2008.
2. No anouni was duc for dcposii as on iIc Dalancc SIcci daic.


AV Dt
31Vt MDUcK, 200S
As ai
31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
SCHEDULE 12 - PROVISIONS
Proposcd Dividcnd 1,010.13 505.06
Ta on Proposcd Dividcnd 1?1.6? 85.84
1,1S1.S0 590.90
SCHEDULE 13 - OTHER INCOME

Inicrcsi
(Cross,Ta dcducicd ai sourcc Fs.16.34 lalIs;
Prcvious Ycar - Fs. 15.79 lalIsi
- On Dcposiis ?2.44 38.83
- On OiIcrs 6.01 23.18
?S.4S 62.01
Dividcnd
- Fron Tradc Invcsincnis 99.?4 -
- Fron OiIcrs SS.3? 2.87
1SS.11 2.87

Fcvcnuc fron Carlon Crcdii 2??.?? 277.66

Profii on Salc of Invcsincnis (ncii S.94 1.33

Misccllancous 94.9S 64.82

612.22 408.69


SCHEDULE 14 - RAW MATERIALS CONSUMED


Opcning Siocl 9,043.24 6,141.93

Add . PurcIascs (Noics 4.1 and 4.2 on ScIcdulc 18i 6?,114.S2 70,163.31
?6,1SS.06 76,305.24

Lcss . Closing Siocl 12,091.S0 9,043.24

64,066.26 67,262.00






AV Dt31Vt MDUcK,
200S RupHHV LQ
LDkKV
AV Dt31Vt MDUcK,
200? RupHHV LQ
LDkKV
SCHEDULE 1S - EXPENSES
Salarics, Wagcs and Donus 2,S13.3S 1,996.06
Coniriluiion io Providcni Fund, Supcrannuaiion
Fund and Craiuiiy Fund 261.10 261.97
Lalour and Siaff Wclfarc 2S2.SS 249.57
Consunpiion of Siorcs, Sparcs and Pacling Maicrials 3,31?.S6 3,184.43
Powcr and Fucl 6S3.6S 546.26
Waicr CIargcs 102.6? 89.40
Fcni 62.19 62.20
Faics and Tacs S4.SS 157.18
Mainicnancc and Fcpairs .
- Duildings 102.?9 160.97
- Plani and MacIincry 4S4.S4 476.43
- OiIcrs 201.3? 153.37
?S9.00 790.77
Insurancc S1.19 82.50
Travclling and Transpori Epcnscs S34.23 369.05
Sulscripiions and Donaiions 99.0? 30.95
Discouniing CIargcs 1S.6S 257.89
Misccllancous Epcnscs 3,229.S0 3,507.38
FrcigIi Ouiward 2,062.1? 2,064.42
Connission and Discouni 11,612.S3 7,860.20
Dircciors' Fccs 6.SS 4.65
FcscarcI and Dcvclopncni Epcnscs (Noic 4.2 on ScIcdulc 18i 309.1S 58.21
Loss on Disposal of Ficd Asscis (ncii 39.63 47.10
(Caini 1 Loss on Forcign EcIangc Fluciuaiions (ncii (1,1?2.S6) 311.99
Provision for dininuiion in valuc of Invcsincnis - 101.01
Dad Dclis wriiicn off (ncii 342.03 -
Provision for Douliful Dclis (ncii 113.?0 624.70
2S,343.1S 22,657.89


AV Dt
31Vt MDUcK, 200S
As ai
31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
SCHEDULE 16 - PROVISION FOR TAXATION
Currcni Ta 3,034.00 525.38
(nci of MAT crcdii Fs. 389.51 lalIs, Prcvious Ycar - Nili
Dcfcrrcd Ta (rclcasci 1 cIargc (?S0.66) 1,501.82
Fringc Dcncfii Ta 94.2S 74.24
2,34?.S9 2,101.44
SCHEDULE 1? - BASIC AND DILUTED EARNINGS PER SHARE
Adjusicd Nunlcr of Equiiy SIarcs ai iIc lcginning of iIc pcriod 2S,2S2,1S2(1) 17,751,432(3i
Adjusicd Nunlcr of Equiiy SIarcs ai iIc cnd of iIc pcriod 2S,2S3,0S0(2) 25,252,182(1i
WcigIicd avcragc nunlcr of Equiiy SIarcs ouisianding during iIc
pcriod (Dasic EPSi 2S,2S2,616(4) 20,022,903 (6i
WcigIicd avcragc nunlcr of Equiiy SIarcs ouisianding during iIc
pcriod (Diluicd EPSi 26,120,2SS(S) 20,509,070(7i
Noninal Valuc of cacI Equiiy SIarc (Fs.i 10 10
Profii aficr Taaiion availallc for Equiiy SIarcIoldcrs (Fupccs in
LalIsi S,930.SS 2,353.20
Dasic Earnings pcr SIarc (Fs.i 3S.3? 11.75
Diluicd Earnings pcr SIarc (Fs.i 34.19 11.47
AGjuVtHG
NumbHU RI
EquLty SKDUHV
(1i (2i (3i
AV Dt 31Vt MDUcK, 200?/ 1Vt
ApULO, 200? AV Dt 31Vt MDUcK, 200S AV Dt 1Vt ApULO, 2006
Toial Toial Toial
Nunlcr of
SIarcs issucd

25,206,182 47,014 25,253,196 25,206,182

47,014 25,253,196 17,706,182 47,014

17,753,196
Noninal Valuc
(Fs.i

252,061,820 470,140 252,531,960 252,061,820

470,140 252,531,960177,061,820470,140

177,531,960
Paid up Valuc
(Fs.i

252,061,820 460,000 252,521,820 252,061,820

468,980 252,530,800177,061,820452,500

177,514,320
Adjusicd Nunlcr of
sIarcs

25,206,182 46,000 25,252,182 25,206,182

46,898 25,253,080 17,706,182 45,250

17,751,432



WHLJKtHG DYHUDJH QumbHU RI VKDUHV IRU BDVLc EPS WHLJKtHG DYHUDJH QumbHU RI VKDUHV IRU DLOutHG EPS

(4i (5i
YHDU HQGHG 31Vt MDUcK, 200S YHDU HQGHG 31Vt MDUcK, 200S
Daic
No. of SIarcs
Ouisianding
Days
Proporiionaic
nunlcr of sIarcs
ouisianding
Daic
No. of SIarcs
Ouisianding
Days
Proporiionaic
nunlcr of
SIarcs ouisianding
1-Apr-07 25,252,182 78 5,381,613 1-Apr-07 26,119,854 78 5,566,526
18-Jun-07 25,252,280 24 1,655,887 18-Jun-07 26,119,952 24 1,712,784
12-Jul-07 25,252,476 116 8,003,517 12-Jul-07 26,120,148 116 8,278,517
5-Nov-07 25,252,926 36 2,483,894 5-Nov-07 26,120,598 36 2,569,239
11-Dcc-07 25,253,030 100 6,899,735 11-Dcc-07 26,120,702 100 7,136,804
20-Mar-08 25,253,080 12 827,970 20-Mar-08 26,120,752 12 856,418
WcigIicd avcragc nunlcr 25,252,616 WcigIicd avcragc nunlcr 26,120,288

(6i (7i
YHDU HQGHG 31Vt MDUcK, 200? YHDU HQGHG 31Vt MDUcK, 200?
Daic
No. of SIarcs
Ouisianding
Days
Proporiionaic
nunlcr of
SIarcs ouisianding
Daic
No. of
SIarcs
Ouisianding
Days Proporiionaic nunl
SIarcs ouisiand
1-Apr-06 17,751,432 199 9,678,178 1-Apr-06 17,751,432 199 9,678,178
17-Oci-06 21,251,432 50 2,911,155 17-Oci-06 21,251,432 3 174,669
6-Dcc-06 21,252,182 54 3,144,158 20-Oci-06 22,578,994 3 185,581
29-Jan-07 25,252,182 62 4,289,412 23-Oci-06 23,021,514 44 2,775,196
WcigIicd avcragc nunlcr 20,022,903 6-Dcc-06 23,022,264 54 3,406,034
29-Jan-0725,252,182 62 4,289,412
WcigIicd avcragc nunlcr 20,509,070

RHcRQcLOLDtLRQ RI WHLJKtHG AYHUDJH NumbHU RI VKDUHV cRQVLGHUHG IRU BDVLc EPS DQG DLOutHG EPS
WcigIicd avcragc nunlcr of sIarcs
CRQVLGHUHG IRU BDVLc EPS (4) fs25,252,616
Add.Equivalcni nunlcr of diluicd sIarcs
dccncd io Iavc lccn issucd on alloincni of Warranis on.
Daic Nunlcr Days
1-Apr-07 867,672 366 867,672
Considcrcd for Diluicd EPS (5i 26,120,288




SCHEDULE 1S - NOTES ON ACCOUNTS
1| Significani Accouniing Policics.

TIc Financial Siaicncnis arc prcparcd io conply in all naicrial aspccis wiiI all iIc applicallc accouniing principlcs in
India, iIc applicallc accouniing siandards noiificd undcr scciion 211(3Ci of iIc Conpanics Aci, 1956 and iIc rclcvani
provisions of iIc Conpanics Aci, 1956.
(ii Ficd Asscis
Ficd asscis rcvalucd (lasis indicaicd in Noic 11.2 lclowi arc siaicd ai rcvalucd anounis lcss dcprcciaiion. OiIcr ficd
asscis arc siaicd ai cosi of acquisiiion (nci of CENVAT crcdiii or consiruciion lcss dcprcciaiion.

Cosi of sofiwarc arc capiialiscd in iIc pcriod in wIicI iIc sofiwarc is inplcncnicd for usc, wIcrc ii is cpccicd io providc
fuiurc cnduring ccononic lcncfii. Capiialisaiion cosis includcs liccnsc fccs and cosi of inplcncniaiion 1 sysicn
inicgraiion scrviccs.
Inpairncni loss is rccogniscd wIcrcvcr iIc carrying anouni of ficd asscis of a casI gcncraiing unii ccccds iis
rccovcrallc anouni i.c. nci sclling pricc or valuc in usc, wIicIcvcr is IigIcr.
(iii Dorrowing Cosis

Dorrowing cosis aiiriluiallc io acquisiiion or consiruciion of qualifying asscis (asscis wIicI rcquirc sulsianiial pcriod
of iinc io gci rcady for iis inicndcd usci arc capiialiscd as pari of iIc cosi of sucI asscis. All oiIcr lorrowing cosis arc
cIargcd io rcvcnuc.
(iiii Covcrnncni Cranis

Cranis of Capiial naiurc (noi rclaicd io spccific ficd asscis i arc crcdiicd io Capiial Fcscrvc . Cranis rclaicd io rcvcnuc
arc crcdiicd io rclaicd cpcnsc accouni.
(ivi Dcprcciaiion

Dcprcciaiion on iIc incrcncnial anouni addcd on rcvaluaiion in rcspcci of rcvalucd iicn is calculaicd on siraigIi linc
nciIod ai raics considcrcd applicallc ly valucrs. SucI addiiional dcprcciaiion is adjusicd againsi iIc availallc lalancc
in Fcvaluaiion Fcscrvc in rcspcci of rclaicd iicns.

Sofiwarc capiialiscd arc anoriiscd ovcr a pcriod of iIrcc ycars fron iIc daic of capiializaiion. Dcprcciaiion on original
cosi of ficd asscis is providcd ciiIcr on siraigIi linc lasis or on wriiicn down valuc nciIod ai raics spccificd in
ScIcdulc XIV io iIc Conpanics Aci, 1956.
(vi Forcign Currcncy Transaciions

Monciary asscis and lialiliiics rclaiing io forcign currcncy iransaciions rcnaining unsciilcd ai iIc ycar-cnd arc
iranslaicd ai iIc prcvailing ccIangc raics and iIc rcsuliani gains1losscs arc rccogniscd in iIc Profii and Loss Accouni.

TIc prcniun or discouni in rcspcci of forward ccIangc coniracis arc appropriaicly rccogniscd in iIc Profii and Loss
Accouni ovcr iIc pcriod of iIc coniraci. EcIangc diffcrcncc arising on sucI coniracis is accounicd for in iIc rcporiing
pcriod in wIicI iIc ccIangc raic cIangcs.

EcIangc diffcrcnccs (including arising on iIc forward ccIangc coniracisi in rcspcci of lialiliiics incurrcd io acquirc
ficd asscis fron ouisidc India, wIicI wcrc IiiIcrio adjusicd io iIc carrying anouni of iIc rclaicd ficd asscis Iavc lccn
rccogniscd in iIc Profii and Loss Accouni fron iIc currcni financial ycar.
(vii Invcsincnis

Invcsincnis arc valucd ai cosi lcss provision for dininuiion (oiIcr iIan icnporaryi in iIc valuc iIcrcof as dcicrnincd ly
iIc Doard of Dircciors lascd on pcriodical rcvicw.
(viii Invcniorics
Invcniorics arc valucd ai lowcr of cosi and nci rcalisallc valuc.
Cosi of Siorcs and Sparcs is dcicrnincd on wcigIicd avcragc lasis.
Cosi of Faw Maicrials is dcicrnincd on Firsi In Firsi Oui lasis.

Cosi of FinisIcd Coods includcs naicrial cosi (dcicrnincd on iIc lasis indicaicd alovci, appropriaic sIarc of
ovcrIcads and ccisc duiy payallc on sulscqucni clcarancc fron iIc faciory.
(viiii Fccogniiion of Inconc and Epcndiiurc

(ai Salc of carlon llacl is rccogniscd on iIc lasis of dcspaicI 1 sIipncni of goods io cusioncrs and iIc salc of powcr
is rccogniscd lascd on powcr off-ialc ly iIc cusioncr.

(li Iicns of inconc and cpcndiiurc arc rccogniscd on accrual (cccpi wIcrc iIcrc arc significani unccriainiicsi and
prudcni lasis.
(ii Enploycc Dcncfiis
Accouniing Siandard (ASi 15 Enploycc Dcncfiis issucd (rcviscd AS 15i Ias lccn adopicd fron iIc currcni FY..
a.







(ii MoniIly coniriluiion payallc ly iIc Conpany ai a spccificd pcrccniagc of iIc cligillc pay of covcrcd cnployccs io iIc
providcni funds, (Dcfincd Coniriluiion Plani nainiaincd wiiI scparaic Trusis csiallisIcd undcr Enployccs Providcni
Fund and Misccllancous Provisions Aci, 1952 and iIc Enployccs Providcni Fund ScIcnc, 1952 for Hcad Officc and
Durgapur Plani cnployccs and wiiI Fcgional Providcni Fund Connissioncrs (FPFCsi for oiIcr cnployccs, is rccogniscd
as a cIargc on accrual lasis. TIc Conpany Ias an olligaiion io nalc addiiional coniriluiion io iIc Trusi in casc of
inadcquacy of iIc aggrcgaic funds availallc wiiI iIc Trusiccs (nainly conprising nci annual rciurn fron invcsincnis
of iIc Trusii for disiriluiion of annual inicrcsi on iIc lalanccs of iIc lcncficiarics ai applicallc inicrcsi raic noiificd ly
iIc Covcrnncni.

(iii Annual coniriluiion payallc ly iIc Conpany ai a spccificd pcrccniagc of iIc cligillc salarics of ccriain cnployccs
covcrcd undcr iIc Conpany's supcrannuaiion scIcnc (Dcfincd Coniriluiion Plani io a scparaic supcrannuaiion fund,
csiallisIcd ly iIc Conpany (approvcd ly Inconc-ia auiIoriiicsi for payncni of pcnsions io iIc covcrcd cnployccs
aficr iIcir rciircncni lascd on iIc icnurc of iIcir cnployncni, is rccogniscd as a rcvcnuc cIargc on accrual lasis.

(iiii For iIc purposc of payncni of graiuiiy io iis cnployccs on ccssaiion of iIcir cnployncni lascd on iIcir pay and
icnurc of cnployncni, iIc Conpany Ias ialcn graiuiiy policics (Dcfincd Dcncfii Plani wiiI Lifc Insurancc Corporaiion


of India (LICi. Lialiliiy on accouni of graiuiiy was IiiIcrio rccogniscd as rcvcnuc cIargc on iIc lasis of aciuarial
valuaiion carricd oui ly LIC for dcicrnining ycar's coniriluiion payallc for iIc policy. Effcciivc currcni financial ycar,
sucI lialiliiy Ias lccn dcicrnincd ly aciuarial valuaiion lascd on iIc nciIod prcscrilcd ly rcviscd AS 15. TIc
sIorifall of iIc opcning iransiiional lialiliiy nci of dcfcrrcd ia Ias lccn appropriaicd fron Ccncral Fcscrvc.


(ivi Lialiliiy of iIc Conpany accrucd iowards lcavc cncasIncni lcncfii cicndcd io iis cnployccs on ccssaiion of scrvicc,
lascd on iIcir pay and nunlcr of days of unavailcd lcavc, suljcci io a cciling on cncasIallc accunulaicd lcavc
(Dcfincd Dcncfii Plani is cvaluaicd on iIc lasis of aciuarial valuaiion, sucI aciuarial valuaiion for iIc currcni financial
ycar is lascd on iIc nciIod prcscrilcd ly rcviscd AS 15 and rccogniscd as rcvcnuc cIargc on accrual lasis.

(vi Lialiliiy of iIc Conpany accrucd iowards posi cnployncni ncdical lcncfiis cicndcd io ccriain caicgorics of iis
cnployccs conprising payncni of annual ncdical insurancc prcniun io covcr Iospiialisaiion and rcinlurscncni of
doniciliary ncdical cpcnscs wiiIin a dcfincd nonciary linii (Dcfincd Dcncfii Plani, wIicI was IiiIcrio accounicd for
on iIc lasis of prcniun payallc and clains of iIc cligillc rciircd cnployccs, Ias lccn rccogniscd in iIc currcni
financial ycar on iIc lasis of aciuarial valuaiion on iIc nciIod prcscrilcd ly rcviscd AS 15. TIc opcning iransiiional
lialiliiy nci of dcfcrrcd ia Ias lccn appropriaicd fron Ccncral Fcscrvc.
l. Payncnis undcr Voluniary Fciircncni ScIcncs arc anoriiscd ovcr iIc pcriod lcing lowcr of .
(ii iIc rcnaining pcriod of scrvicc of iIc rclaicd cnployccs,
(iii fivc ycars (for payncnis nadc upio 31si MarcI, 2006i,
(iiii ycar cnding 31si MarcI, 2010 (in casc of payncnis nadc fron 1si April, 2006i.
(i FcscarcI and Dcvclopncni
Fcvcnuc cpcndiiurc on rcscarcI and dcvclopncni is cIargcd againsi iIc profii for iIc pcriod in wIicI ii is incurrcd.
(ii Tacs on Inconc

Currcni ia is dcicrnincd as iIc anouni of ia payallc in rcspcci of iaallc inconc for iIc pcriod lascd on applicallc
ia raic and laws. Dcfcrrcd ia is rccogniscd, suljcci io considcraiion of prudcncc in rcspcci of dcfcrrcd ia assci, on
iining diffcrcnccs, lcing iIc diffcrcncc lciwccn iaallc inconc and accouniing inconc iIai originaics in onc pcriod and
arc capallc of rcvcrsal in onc or norc sulscqucni pcriods and is ncasurcd using ia raic and laws iIai Iavc lccn
cnacicd or sulsianiivcly cnacicd ly iIc Dalancc SIcci daic. Dcfcrrcd ia asscis arc pcriodically rcvicwcd io rcasscss
rcalisaiion iIcrcof.
2|



Pursuani io iIc approval of iIc ncnlcrs of iIc Conpany in accordancc wiiI SEDI guidclincs 30,00,000 Convcriillc
Warranis of Fs 149 cacI wiiI an opiion io sulscrilc io onc Equiiy SIarc of Fs 10 cacI fully paid up, wiiIin 18 noniIs
of iIc daic of alloincni Iavc lccn alloiicd on 15iI MarcI, 2007 on prcfcrcniial lasis upon upfroni payncni of 10% of
iIc ioial sulscripiion noncy.
(3.1| Managcrial Fcnuncraiion .
YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
Anounis paid1 payallc io .
ai Managing Dirccior
Salarics, Donus and Allowanccs 134.31 53.65
Coniriluiion io Providcni Fund,
Supcrannuaiion Fund and Craiuiiy Fund ?.2S 5.97
Pcrquisiics 2.S2 5.41
144.0S 65.03
li OiIcr Dircciors
Dircciors' Fccs 6.SS 4.65
3.2|

Conpuiaiion of Nci Profii undcr Scciion 198(1i 1 349 of iIc Conpanics Aci, 1956 Ias noi lccn providcd in vicw of waivcr
of connission ly iIc conccrncd Dircciors.
4.1| Faw Maicrial PurcIasc is nci of Fs. 916.31 lalIs (Prcvious ycar - Fs. 2,968.71 lalIsi lcing lcncfiis undcr Duiy
Ecnpiion ScIcncs pcriaining io cporis 1 dccncd cporis and Duiy Drawlacl.
4.2| FcscrcI and Dcvclopncni Epcnscs includcs Faw Maicrials Consuncd Fs. 255.88 lalIs (Prcvious ycar - 22.83 lalIsi,
Salarics, Wagcs and Donus Fs. 30.98 lalIs (Prcvious ycar - Fs. 26.63 lalIsi, Coniriluiion io Providcni Fund,
Supcrannuaiion Fund and Craiuiiy Fund Fs. 3.25 lalIs (Prcvious ycar - Fs. 3.21 lalIsi, Lalour and Siaff Wclfarc Fs.
1.64 lalIs (Prcvious ycar - Fs. 0.79 lalIsi, Mainicnancc and Fcpairs - Duilding Fs. 0.19 lalIs (Prcvious ycar - Fs. 0.14
lalIsi, Travclling and Transpori Epcnscs Fs. 3.18 lalIs (Prcvious ycar - Nili and Misccllancous Epcnscs Fs. 14.03
lalIs (Prcvious ycar - Fs. 4.61 lalIsi.



YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
4.3| Audiiors' Fcnuncraiion.
Audii Fccs 16.00 12.00
Ta Audii 4.00 3.50
OiIcrs Ccriificaiions S.00 5.55
Fcinlurscncni of Epcnscs (including Scrvicc Ta 0.49 0.76
io iIc cicni rouicd iIrougI Profii and Loss Accounii
Includcs Fs 0.50 lalI for Prcvious Ycar
5| Toial Anouni of Consunpiion of Faw Maicrials, Siorcs and Sparcs.
YHDU EQGHG 31Vt MDUcK, 200S Ycar Endcd 31si MarcI, 2007
% VDOuH % Valuc
RupHHV LQ LDkKV Fupccs in LalIs
Inporicd 90 60,632.0S 86

60,616.21
Indigcnous 10 6,?S1.?4 14

9,830.22
Toial 100 6?,3S3.S2 100

70,446.43

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SCHEDULE 1S - NOTES ON ACCOUNTS (Contd.)
YHDU EQGHG 31Vt MDUcK, 200S Ycar Endcd 31si MarcI, 2007
QuDQtLty RupHHV LQ Ouaniiiy Fupccs in
7| Faw Maicrials consuncd MT LDkKV MT LalIs
(all indigcnous-unlcss ncniioncd
oiIcrwisci for nanufaciuring
Carlon Dlacl .
(ii L.D.O. SS3 296.41 361 118.77
(iii Indigcnous Carlon Dlacl
Fccd Siocl 10,SS9 1,S2S.6? 31,501 4,969.36
(iiii Inporicd Carlon Dlacl
Fccd Siocl 42?,3S0 60,603.32 406,803 60,531.26
(ivi Tar Oil 10,S1? 1,SS3.99 10,323 1,655.35
(vi OiIcrs 32 12.?S 24 10.09
449,641 64,322.14 449,012 67,284.83
Lcss. Consunpiion iIrougI FcscarcI
and Dcvolopncni runs.
Inporicd Carlon Dlacl
- Fccd Siocl 1,449 216.?3 163 22.83
- Tar Oil 322 39.1S - -

44?,S?0 64,066.26 448,849 67,262.00

YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
8| CIF Valuc of Inporis -
(ai Faw Maicrials S?,69?.S0 57,474.74
(li Siorcs and Sparcs 242.1S 83.30
(ci Capiial Equipncni 9S3.0S -

9| Epcndiiurc in Forcign Currcncy
cIargcd io iIc Profii and Loss Accouni
on accouni of.
(ai Connission on Epori Salcs 361.S6 220.42
(li Inicrcsi S24.99 1,642.65
(ci OiIcrs S14.60 118.26

10|

Advanccs of Fs. 742.28 lalIs (Prcvious Ycar - Fs. 583.67 lalIsi includcs Fs. 1.08 lalIs (Prcvious Ycar - Fs. 1.24 lalIsi duc ly
an Officcr of iIc Conpany, nainun anouni duc ai any iinc during iIc ycar - Fs. 1.24 lalIs (Prcvious Ycar - Fs.1.41 lalIsi.
11.1|
For iIc purposc of iIcsc accounis , following nciIods and raics of dcprcciaiion Iavc lccn uscd for dcprcciaiing iIc original
cosi of ficd asscis .
(ai Ccriain iicns of Plani and MacIincry lcing cncrgy saving dcviccs addcd during iIc pcriod cndcd 31si MarcI,1987 .
Undcr SiraigIi linc nciIod ai raics spccificd in ScIcdulc XIV of iIc Conpanics Aci, 1956.
(li OiIcr asscis addcd upio 31si MarcI,1987 . Undcr wriiicn down valuc nciIod ai raics spccificd in ScIcdulc XIV of
iIc Conpanics Aci, 1956.
(ci Addiiions sincc 1si April, 1987 . Undcr SiraigIi linc nciIod ai raics spccificd in ScIcdulc XIV of iIc Conpanics Aci, 1956.
11.2| Dascd on iIc valuaiion rcporis sulniiicd ly iIc valucrs appoinicd for iIc purposc, ccriain iicns of iIc Conpany's ficd
asscis viz., Land

(FrccIold 1 LcascIoldi, Acquisiiion and Dcvclopncni Epcnscs, Duildings on sucI Land, Flais, Elccirical Insiallaiions, Plani
and MacIincry and Failway Siding| wcrc rcvalucd on 30iI Novcnlcr,1984, on 30iI Scpicnlcr,1991 and also on 30iI
Scpicnlcr, 2001 (cccpi for Failway Sidingi aficr considcring iIc following faciors.

- csiinaicd currcni narlci valuc pcriaining io Land (FrccIold1LcascIoldi, Acquisiiion and Dcvclopncni Epcnscs, Duildings
on sucI Land and Flais

- valucs of Elccirical Insiallaiions, Plani and MacIincry and Failway Siding (wIcn applicallci lascd on iIcir currcni cosi of
rcplaccncni
- adjusincnis for iIc condiiion, iIc siandard of nainicnancc, dcprcciaiion upio valuaiion daics, cic.
11.3| TIc rcsuliani rcvaluaiion surplus of Fs.1,011.07 lalIs, Fs.2,994.04 lalIs and Fs. 5,995.27 lalIs arising fron iIc aforcsaid
rcvaluaiions wcrc iransfcrrcd io Fcvaluaiion Fcscrvc in iIc Conpany's annual accounis for iIc ycars 1983-84, 1990-91 and
2000-01 rcspcciivcly.

Dcprcciaiion for iIc ycar cndcd 31si MarcI, 2008 on iicns of ficd asscis rcvalucd includc an addiiional cIargc of Fs. 279.39
lalIs(Prcvious Ycar - Fs. 301.88 lalIsi ovcr iIai calculaicd on original cosi ai raics prcscrilcd undcr ScIcdulc XIV of iIc
Conpanics Aci,1956 as ancndcd during 1993-94 rcprcscniing dcprcciaiion on iIc incrcncnial anounis addcd on rcvaluaiion
calculaicd ai iIc raics considcrcd applicallc ly iIc valucrs.
11.4| Capiial Epcndiiurc in Progrcss includcs.
(ai Capiial Advanccs unsccurcd, considcrcd good - Fs. 4,738.05 lalIs (31si MarcI,2007 - Fs. 1,363.95 lalIsi
(li Dorrowing cosi Fs. 555.34 lalIs (31si MarcI, 2007 - Fs. 342.83 lalIsi




SCHEDULE 1S - NOTES ON ACCOUNTS (Contd.)
12| Dciails of Dcfcrrcd Ta Assci1 Lialiliiy considcrcd in iIcsc accounis .-
AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
Dcfcrrcd Ta Lialiliiy on accouni of -
- Dcprcciaiion 4,624.?1 4,823.08
- OiIcrs 0.SS 0.73
4,62S.29 4,823.81
Dcfcrrcd Ta Assci on accouni of -
- Iicns allowallc for ia purposc on payncni S1?.10 43.22
- OiIcrs S??.96 443.94
1,09S.06 487.16
3,S30.23 4,336.65
13|



According io iIc lciicrs of undcrialing givcn ly iIc Conpany io iIc conccrncd Financial Insiiiuiions, iis invcsincnis in
cquiiy sIarcs of Maplc Circuiis Liniicd and Norplc Oal India Liniicd cannoi lc plcdgcd, cIargcd or oiIcrwisc
cncunlcrcd or disposcd off wiiIoui iIcir prior conscni, during iIc currcncy of iIc loan faciliiics granicd ly iIc Financial
Insiiiuiions io iIc said conpanics.

AV Dt As ai
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
14| Coniingcni Lialiliiics for .
(14.1i Ouisianding Danl Cuaraniccs cic. ?4.96 248.20
(14.2i Dills discounicd - 1,813.75
(14.3i Cuaraniccs or Counicr Cuaraniccs or Counicr Indcnniiy givcn ly iIc Conpany .
(ai on lcIalf of lodics corporaic and oiIcrs (oiIcr iIan guaraniccs wIicI
according io lcgal opinion arc no longcr cnforccallc againsi iIc Conpanyi
- Linii 9.00

9.00
- Ouisianding 9.00

9.00
(li for rcpayncni of Housing Loan granicd ly Housing Dcvclopncni
Financc Corporaiion Lid. io cnployccs of iIc Conpany. S.90

12.16
(14.4i Clains againsi iIc Conpany noi aclnowlcdgcd as dclis .

(ai Inconc-ia naiicrs pcnding (oiIcr
iIan naiicrs sci asidc for rcasscssncnii 301.S4

295.09
(li Salcs Ta naiicrs 193.2? 194.66


15.1|

Prcniun on forcign ccIangc arising fron forward ccIangc coniraci io lc rccogniscd in iIc accounis of fuiurc pcriods
Fs. 2.53 lalIs (Prcvious Ycar - Fs. 19.07 lalIsi.
15.2|
In conscqucncc of rccogniiion of ccIangc diffcrcnccs (including arising on iIc forward ccIangc coniracisi in rcspcci of
lialiliiics incurrcd io acquirc ficd asscis fron ouisidc India in iIc Profii and Loss Accouni rcfcr noic 1(vi alovc| gain on
forcign ccIangc fluciuaiion for iIc ycar Ias lccn incrcascd ly Fs. 30.29 lalIs.

16| Earnings in Forcign EcIangc on Accouni of - YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ LDkKV Fupccs in LalIs
Epori Salcs (F.O.D. Valuci 21,966.04 22,24S.?S
Carlon Crcdii 2??.?? 2??.66

17|

Capiial Conniincnis (nci of advanccs Fs. 4,738.05 lalIs , 31.03.2007 - Fs. 1,363.95 lalIs i noi providcd for as ai 31si
MarcI, 2008 arc csiinaicd ai Fs. 11,950 lalIs (31.03.2007 - Fs. 6,550 (lalIsi
18.1| Conscqucni upon cIangc in iIc accouniing policy rclaiing io cnploycc lcncfiis duc io adopiion of rcviscd AS 15 rcfcr
noic 1(ii alovc| in iIc currcni financial ycar, incrcasc in iIc ycar's cpcnscs and appropriaiion fron Ccncral Fcscrvc (nci
of Dcfcrrcd ia of Fs. 25.76 lalIsi iowards opcning lialiliiics in icrns of iIc iransiiional provisions coniaincd in rcviscd
AS 15 arc sci oui lclow.
IQcUHDVH/ (DHcUHDVH) LQ yHDU'V HxpHQVHV AppURpULDtHG IURm GHQHUDO RHVHUYH
AccRuQt KHDG RupHHV LQ LDkKV RupHHV LQ LDkKV
Posi Enployncni Mcdical Lalour and Siaff Wclfarc 7.36 29.64
Craiuiiy Coniriluiion io Providcni Fund,
Supcrannuaiion Fund and
Craiuiiy Fund
(1.91i 20.39



SCHEDULE 1S - NOTES ON ACCOUNTS (Contd.)
18.2| RHcRQcLOLDtLRQ RI RpHQLQJ DQG cORVLQJ bDODQcHV RI tKH pUHVHQt YDOuH RI GHILQHG bHQHILt RbOLJDtLRQV-
GUDtuLty LHDYH EQcDVKmHQt MHGLcDO
RupHHV LQ LDkKV RupHHV LQ LDkKV RupHHV LQ LDkKV
Opcning lalancc 550.00 135.10 44.91
Currcni Scrvicc Cosi 34.41 16.29 0.45
Inicrcsi cosi 44.96 11.48 3.78
Aciuarial (lossi 1 gain (6.11i (42.76i 4.65
(Dcncfiis paidi (42.02i (27.19i (0.76i
Closing lalancc 581.24 92.92 53.03

18.3| RHcRQcLOLDtLRQ RI RpHQLQJ DQG cORVLQJ bDODQcHV RI tKH IDLU YDOuH RI pODQ DVVHtV * -
GUDtuLty
RupHHV LQ LDkKV
LHDYH EQcDVKmHQt
RupHHV LQ LDkKV
MHGLcDO
RupHHV LQ LDkKV
Opcning lalancc 455.98 - -
Epccicd rciurn on Plan Assci 36.48 - -
Aciuarial loss 1 (gaini (32.57i - -
Conpany's coniriluiion 98.11 - -
Dcncfiis paid (42.02i - -
Closing lalancc 515.98 - -
Consisiing Funds nainiaincd wiiI LIC. Aciual Fciurn iIcrcon awaiicd.

18.4| AmRuQt UHcRJQLVHG LQ BDODQcH SKHHt -
FuQGHG UQIuQGHG
GUDtuLty LHDYH EQcDVKmHQt MHGLcDO
RupHHV LQ LDkKV RupHHV LQ LDkKV RupHHV LQ LDkKV
Prcscni valuc of olligaiion 581.24 92.92 53.03
Fair Valuc of Plan Assci 515.98 - -
Nci Assci 1 (Lialiliiyi (65.26i (92.92i (53.03i

18.5| AmRuQt UHcRJQLVHG LQ PURILt DQG LRVV AccRuQt -

GUDtuLty LHDYH EQcDVKmHQt MHGLcDO
RupHHV LQ LDkKV RupHHV LQ LDkKV RupHHV LQ LDkKV
Currcni scrvicc cosi 34.41 16.29 0.45
Inicrcsi cosi 44.96 11.48 3.78
Epccicd Fciurn on Plan Assci (36.48i - -
Aciuarial loss 1 (gaini 26.46 (42.76i 3.89
Fccogniscd in Profii and Loss Accouni 69.35 (14.99i 8.12
Undcr Coniriluiion io
Providcni Fund,
Supcrannuaiion
Fund and Craiuiiy
Fund
Salarics, Wagcs and
Donus
Lalour and Siaff
Wclfarc

18.6| PULQcLpDO ActuDULDO AVVumptLRQV uVHG -

Morialiiy Tallc LICI 1994-1996
Discouni raic 8.5%
Inflaiion raic 6.0%
Epccicd Fciurn on asscis 8.0%
Mcdical cosi ircnd raics 5.0%
Fornula uscd Projccicd Unii Crcdii MciIod

TIc csiinaics of fuiurc salary incrcasc considcrcd in iIc aciuarial valuaiion ialcs inio accouni faciors lilc inflaiion,
scnioriiy, pronoiion and oiIcr rclcvani faciors.



SCHEDULE 1S - NOTES ON ACCOUNTS (Contd.)
18.7| EIIHct RI LQcUHDVH / GHcUHDVH RI RQH pHUcHQtDJH pRLQt LQ tKH DVVumHG mHGLcDO cRVt tUHQG UDtHV RQ:

IQcUHDVH DHcUHDVH
RupHHV LQ LDkKV RupHHV LQ LDkKV
Aggrcgaic of currcni scrvicc cosi and inicrcsi cosi 1.72 1.72
Accunulaicd Posi Enployncni lcncfii olligaiion for ncdical cosi 0.13 0.13

18.8| As rcgards coniriluiion io iIc providcni fund nainiaincd wiiI scparaic Trusi, iIc Conpany's Aciuary Ias ccriificd iIai
iIc Trusi fund is adcquaic for disiriluiion of inicrcsi ai iIc raic currcnily prcscrilcd ly iIc Covcrnncni and lascd on
aciuarial valuaiion carricd oui in icrns of rcviscd AS 15 no addiiional coniriluiion io iIc fund is rcquircd fron iIc
Conpany iowards any inadcquacy.
18.9| Sincc iIis is iIc firsi ycar of adopiion of rcviscd AS 15, only iIc currcni ycar's figurcs Iavc lccn givcn. TIc anounis of
iIc prcscni valuc of iIc olligaiions, fair valuc of iIc plan asscis, surplus or dcficii in iIc plans, cpcricncc adjusincnis
arising on plan asscis 1 lialiliiics cic. for iIc four annual prcvious pcriods arc noi availallc and iIcrcforc noi discloscd.
18.10| TIc coniriluiion io iIc Dcfincd Dcncfii Plans cpccicd io lc nadc ly iIc Conpany during iIc annual pcriod lcginning
aficr iIc lalancc sIcci daic is yci io lc rcasonally dcicrnincd.
19 SHJmHQt RHpRUtLQJ
(ai Infornaiion rclaiing io iIc iwo lusincss scgncnis, lcing carlon llacl and powcr Ias lccn discloscd as prinary
scgncnis.
(li Effcciivc 1si April, 2007, Inicr-scgncni iransfcrs lcing powcr consuncd for nanufaciurc of carlon llacl arc
lascd on pricc paid for powcr purcIascd fron cicrnal sourccs wIicI was IiiIcrio lascd on pricc cIargcd io iIc
cicrnal cusioncr. SucI cIangc lcing rcvcnuc ncuiral for iIc conpany, Iavc favourallc inpaci on rcvcnuc and
rcsulis of powcr scgncni and advcrsc inpaci on rcsulis of carlon llacl scgncni anouniing io Fs.333.68 lalIs.
(c i Scgncni Fcvcnucs, Fcsulis and OiIcr Infornaiion .
BuVLQHVV SHJmHQt
Fupccs in LalIs
YHDU EQGHG 31.03.200S Ycar Endcd 31.03.2007
CDUbRQ BODck PRZHU TRtDO Carlon Dlacl Powcr Toial
(L) SHJmHQt RHYHQuH
Eicrnal Salcs 114,9S3.?S 1,493.S3 116,4??.2S 111,276.24 1,054.62 112,330.86
Inicr-scgncni Salcs - S9S.94 S9S.94 - 468.14 468.14
114,9S3.?S 2,3S9.4? 11?,3?3.22 111,276.24 1,522.76 112,799.00
(LL) SHJmHQt RHVuOtV

Profii lcforc inicrcsi and ia 14,34S.S6 2,04?.44 16,396.00 9,422.27 1,195.83 10,618.10
Unallocaicd (cpcnscsi1inconc (ncii (3,1?2.S6) (2,903.19i
Inicrcsi (1,944.?0) (3,260.27i
Profii lcforc ia 11,2?S.44 4,454.64
(LLL) SHJmHQt AVVHtV 63,3SS.S0 3,624.26 6?,012.?6 63,003.57 3,780.26 66,783.83
Unallocaicd 1S,393.?6 7,197.72
SS,406.S2 73,981.55
(LY) SHJmHQt LLDbLOLtLHV S4,1SS.?? S09.90 S4,99S.6? 49,828.91 1,498.21 51,327.12
Unallocaicd 6,131.22 6,074.00
61,126.S9 57,401.12
(Y) CDpLtDO ExpHQGLtuUH S32.12 - S32.12 303.61 0.35 303.96
(YL) DHpUHcLDtLRQ 1,S14.10 199.49 2,013.S9 1,837.06 199.42 2,036.48
(YLL) NRQ CDVK ExpHQVH RtKHU
tKDQ DHpUHcLDtLRQ (uQDOORcDtHG) 6?.02 68.14


GHRJUDpKLcDO SHJmHQt
YHDU EQGHG 31.03.200S Ycar Endcd 31.03.2007
WLtKLQ IQGLD
OutVLGH
IQGLD TRtDO WiiIin India
Ouisidc
India Toial
(L) SHJmHQt RHYHQuH 94,S11.24 21,966.04 116,4??.2S 90,082.11 22,248.75 112,330.86

(LL) CDpLtDO ExpHQGLtuUH S32.12 - S32.12 303.96 - 303.96

(LLL) SHJmHQt AVVHtV S1,20?.?9 4,19S.?3 SS,406.S2 70,335.16 3,646.39 73,981.55

20| Fclaicd Pariy Disclosurcs .
Nanc of iIc iransaciing rclaicd pariics, naiurc of rclaiionsIip, iransaciions and ouisianding iicns.
Kcy Managcncni Pcrson Mr. AsIol Coyal, Managing Dirccior.
Transaciions wiiI Kcy nanagcncni pcrson rcfcrrcd alovc .
Fcnuncraiion paid1 payallc for iIc ycar cndcd 31
si
MarcI, 2008 Fs 144.08 lalIs (Prcvious Ycar - Fs. 30.53 lalIsi



21|

SCHEDULE 1S - NOTES ON ACCOUNTS (Contd.)
Pcnding conplciion of iIc rclcvani fornaliiics of iransfcr of ccriain asscis acquircd pursuani io iIc ScIcnc of
Analganaiion of Transnission Holdings Liniicd wiiI iIc Conpany in 2001-2002, sucI asscis rcnain includcd in iIc
lools of iIc Conpany undcr iIc nanc of iIc iransfcror conpany.
22| Epcnscs arc aficr adjusincni of anounis rcinlurscd io or ly iIc Conpany.


23|

Inicrcsi cpcndiiurc is nci of Fs. 95.41 lalIs (Prcvious Ycar - Fs. 203.27 lalIsi lcing inicrcsi carncd on Margin Moncy
Dcposiis and includc inicrcsi on.
(ai Dclcniurc Fs. 64.79 lalIs (Prcvious Ycar - Fs. 150.79 lalIsi
(li Ficd Loans Fs. 1,445.25 lalIs ( Prcvious Ycar - Fs. 1489.29 lalIsi

24|

Fcni of Fs. 62.19 lalIs (Prcvious Ycar - Fs. 62.20 lalIsi rclaics io canccllallc opcraiing lcascs ialcn on or aficr
1.04.2001. TIcsc lcasc arrangcncnis rangc fron 11 noniIs io 3 ycars and arc prinarily in rcspcci of acconnodaiion for
cnployccs, officcs, warcIouscs cic. and inicr alia includc cscalaiion clausc and opiion for rcncwal.

25| Prcvious Ycar's figurcs Iavc lccn rcgroupcd or rcarrangcd wIcrc considcrcd ncccssary.









CDVK FORZ StDtHmHQt IRU yHDU HQGHG 31Vt MDUcK, 200S

YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200S 31si MarcI, 2007
RupHHV LQ ODkKV Fupccs in lalIs
CDVK FORZ FURm OpHUDtLQJ ActLYLtLHV
Nci Profii lcforc iaaiion 11,2?S.44 4,454.64
Adjusincnis for.
Dcprcciaiion 2,013.S9 2,036.48
Loss on salc of ficd asscis (ncii 39.63 47.10
Unrcaliscd (gaini 1 loss (ncii on forcign ccIangc
fluciuaiion 443.?6 (453.68i
Inconc fron Dividcnd (1SS.11) (2.87i
Inicrcsi (Fcccivcd1 Fcccivallc on Inicr Corporaic
Dcposiis cic.i (?S.4S) (62.01i
Profii (ncii on salc of Invcsincni (S.94) (1.33i
Inicrcsi (Paid1 Payallc on loans cici 1,944.?0 3,260.27
Dad Dclis wriiicn off (ncii 342.03 -
Provision for Douliful Dclis (ncii 113.?0 624.70
Provision for dininuiion in valuc of invcsincnis - 101.01
Anoriisaiion of payncnis undcr Voluniary
Fciircncni ScIcncs 6?.02

68.14
4,?24.93 5,617.81
OpHUDtLQJ PURILt bHIRUH WRUkLQJ CDpLtDO CKDQJHV 16,003.3? 10,072.45

Adjusincnis for.
Invcniorics (4,042.64) (2,376.67i
Tradc and OiIcr Fcccivallcs (1,0S9.09) (1,154.57i
Tradc Payallcs (992.29) 5,588.63
(6,094.02) 2,057.39
CDVK GHQHUDtHG IURm OpHUDtLRQV 9,909.3S 12,129.84
Dircci Tacs Paid (including Ta Dcducicd ai Sourcci (3,326.46) (606.73i
Payncnis undcr Voluniary Fciircncni ScIcnc (S1.S0) (42.00i
NHt CDVK IURm OpHUDtLQJ ActLYLtLHV 6,S31.09 11,481.11

CDVK FORZ IURm IQYHVtLQJ ActLYLtLHV
Payncnis for ficd asscis (10,920.21) (2,046.71i
Salc procccds of ficd asscis 1S.93 58.52
PurcIasc of Invcsincni (3S,??S.6S) (1,650.29i
Salc of Invcsincni 3S,?S1.62 1,651.62
Dividcnd rcccivcd fron Invcsincnis 1SS.11 2.87
Inicr Corporaic Dcposiis givcn (1,000.00) (1,000.00i
Inicr Corporaic Dcposiis rcaliscd 1,132.?S 1,005.75
Inicrcsi Fcccivcd OiIcrs 139.36 207.48
Inicrcsi Fcccivcd on Inicr Corporaic Dcposiis cic. 122.?1 6.79
NHt CDVK uVHG LQ IQYHVtLQJ ActLYLtLHV (10,34S.41) (1,763.97i


CDVK FORZ IURm FLQDQcLQJ ActLYLtLHV
Alloincni noncy (including prcniuni rcccivcd 0.1S 5,397.61
Procccds fron long icrn lorrowings 4,21S.S0 10,451.80
Procccds fron sIori icrn lorrowings 4,000.00 21,060.90
Fcdcnpiion of Dclcniurcs (1,000.00) (1,000.00i
Fcpayncni of long icrn lorrowings (1,S43.13) (2,983.54i
Fcpayncni of sIori icrn lorrowings (3,000.00) (31,755.53i
Incrcasc 1 (Dccrcasci in casI crcdii faciliiics,
icnporary 1,332.34 (6,328.99i
ovcrdrafi cic. fron lanls
Dividcnds paid (including ia on dividcndi (SS6.?3) (3.80i
Inicrcsi paid (2,31?.46) (3,453.55i
NHt CDVK uVHG LQ FLQDQcLQJ ActLYLtLHV 1,104.00 (8,615.10i

Nci incrcasc in CasI and CasI Equivalcnis (2,?10.32) 1,102.04

Opcning CasI and CasI Equivalcnis 4,216.41 3,114.37

Closing CasI and CasI Equivalcnis 1,S06.09 4,216.41









AV Dt
31.03.200S
As ai
31.03.2007
CDVK FORZ StDtHmHQt IRU tKH yHDU HQGHG 31Vt MDUcK, 200S (CRQtG.)
1. TKH DbRYH cDVKIORZ VtDtHmHQt KDV
bHHQ pUHpDUHG uQGHU tKH LQGLUHct
mHtKRG DV VHt Rut LQ tKH AccRuQtLQJ
VtDQGDUG AS 3 RI CDVK IORZ VtDUHmHQt
2. CasI and CasI Equivalcnis includc .

CasI in Hand 4.12 2.42
Fcniiianccs in Transii 1,392.69 909.16
WiiI ScIcdulcd Danls.
- On Currcni Accounis 6S.S4 259.23
- On Unpaid and Unclaincd Dividcnd Accounis 34.?4 30.57
(as pcr conira ScIcdulc 11i
- On Margin Moncy Accouni againsi 9.00 3,015.03
Lciicr of Crcdii1Cuaranicc
1,S06.09 4,216.41

Noi availallc for inncdiaic1 rcady usc ly iIc Conpany.

Prcvious ycar's figurcs Iavc lccn rcgroupcd or rcarrangcd, wIcrc considcrcd ncccssary.

TIis is iIc CasI Flow Siaicncni rcfcrrcd io in our rcpori of cvcn daic.


P. Law
Parincr
(McnlcrsIip No. 51790i
For and on lcIalf of
PFICE WATEFHOUSE,
CIaricrcd Accounianis.
Kollaia
28
iI
April, 2008

KausIil MulIcrjcc
Conpany Sccrciary



AsIol Coyal
Managing Dirccior

K. S. D. Sanyal
O. P. MalIoira
Dircciors










M1S.PFICE WATEFHOUSE.
CHAFTEFED ACCOUNTANTS

AUDITOR'S REPORT TO THE MEMBERS OF
PH1II1PS CARBON BIACK I1M13

1. Wc Iavc audiicd iIc aiiacIcd Dalancc SIcci of PIillips Carlon Dlacl Liniicd, as ai 31
si
MarcI 2007,
and iIc rclaicd Profii and Loss Accouni and CasI Flow Siaicncni for iIc ycar cndcd on iIai daic
annccd iIcrcio, wIicI wc Iavc signcd undcr rcfcrcncc io iIis rcpori. TIcsc financial siaicncnis arc iIc
rcsponsililiiy of iIc Conpany's nanagcncni. Our rcsponsililiiy is io cprcss an opinion on iIcsc
financial siaicncnis lascd on our audii.

2. Wc conducicd our audii in accordancc wiiI iIc audiiing siandards gcncrally acccpicd in India. TIosc
Siandards rcquirc iIai wc plan and pcrforn iIc audii io oliain rcasonallc assurancc aloui wIciIcr iIc
financial siaicncnis arc frcc of naicrial nissiaicncni. An audii includcs canining, on a icsi lasis,
cvidcncc supporiing iIc anounis and disclosurcs in iIc financial siaicncnis. An audii also includcs
asscssing iIc accouniing principlcs uscd and significani csiinaics nadc ly nanagcncni, as wcll as
cvaluaiing iIc ovcrall financial siaicncni prcscniaiion. Wc lclicvc iIai our audii providcs a rcasonallc
lasis for our opinion.

3. As rcquircd ly iIc Conpanics (Audiior's Fcporii Ordcr, 2003, as ancndcd ly iIc Conpanics (Audiior's
Fcporii (Ancndncnii Ordcr, 2004, (iogciIcr 'iIc Ordcr'i issucd ly iIc Ccniral Covcrnncni of India in
icrns of sul-scciion (4Ai of Scciion 227 of 'TIc Conpanics Aci, 1956' of India (iIc 'Aci'i and on iIc lasis
of sucI cIccls of iIc lools and rccords of iIc Conpany as wc considcrcd appropriaic and according io
iIc infornaiion and cplanaiions givcn io us, wc furiIcr rcpori iIai.

3.1 (ai TIc Conpany Ias nainiaincd propcr rccords sIowing full pariiculars including quaniiiaiivc
dciails and siiuaiion of ficd asscis.
(li TIc ficd asscis Iavc lccn pIysically vcrificd ly iIc nanagcncni during iIc ycar and no
naicrial discrcpancics lciwccn iIc lool rccords and iIc pIysical invcniory Iavc lccn
noiiccd. In our opinion, iIc frcqucncy of vcrificaiion is rcasonallc.
(ci In our opinion and according io iIc infornaiion and cplanaiions givcn io us, a sulsianiial
pari of ficd asscis Ias noi lccn disposcd of ly iIc Conpany during iIc ycar.

3.2 (ai TIc invcniory (ccluding siocls wiiI iIird pariicsi Ias lccn pIysically vcrificd ly iIc
nanagcncni during iIc ycar. In rcspcci of invcniory lying wiiI iIird pariics, iIcsc Iavc
lccn confirncd ly iIcn. In our opinion, iIc frcqucncy of vcrificaiion is rcasonallc.
(li In our opinion, iIc proccdurcs of pIysical vcrificaiion of invcniory followcd ly iIc
nanagcncni arc rcasonallc and adcquaic in rclaiion io iIc sizc of iIc Conpany and iIc
naiurc of iis lusincss.
(ci On iIc lasis of our caninaiion of iIc invcniory rccords, in our opinion, iIc Conpany Ias
nainiaincd propcr rccords of invcniory. TIc discrcpancics noiiccd on pIysical vcrificaiion
of invcniory as conparcd io iIc lool rccords wcrc noi naicrial.

3.3 (ai TIc Conpany Ias noi granicd any loans, sccurcd or unsccurcd, io conpanics, firns or
oiIcr pariics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci. Accordingly,
iIc paragrapIs 4(iiii (li, 4(iiii (ci and 4(iiii (di of iIc Ordcr arc noi applicallc.
(li TIc Conpany Ias noi ialcn any loans, sccurcd or unsccurcd, fron conpanics, firns or
oiIcr pariics covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci. Accordingly,
iIc paragrapIs 4(iiii (fi and 4(iiii (gi of iIc Ordcr arc noi applicallc.

3.4 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIcrc is an
adcquaic inicrnal conirol sysicn conncnsuraic wiiI iIc sizc of iIc Conpany and iIc naiurc of
iis lusincss for iIc purcIasc of invcniory, ficd asscis and for iIc salc of goods. TIc Conpany
Ias noi providcd any scrvicc during iIc ycar. FuriIcr, on iIc lasis of our caninaiion of iIc
lools and rccords of iIc Conpany, and according io iIc infornaiion and cplanaiions givcn io
us, wc Iavc nciiIcr conc across nor Iavc lccn inforncd of any coniinuing failurc io corrcci
najor wcalncsscs in iIc aforcsaid inicrnal conirol sysicn.




3.5 ai According io iIc infornaiion and cplanaiions givcn io us, iIc pariiculars of coniracis or
arrangcncnis rcfcrrcd io in Scciion 301 of iIc Aci Iavc lccn cnicrcd in iIc rcgisicr rcquircd io
lc nainiaincd undcr iIai Scciion.
li TIcrc Iavc lccn no iransaciions nadc in pursuancc of sucI coniracis or arrangcncnis and
ccccding iIc valuc of Fs. 5 lalIs in rcspcci of any pariy during iIc ycar oiIcr iIan prcfcrcniial
alloincni of Convcriillc Warranis during iIc ycar ai priccs dcicrnincd in lccping wiiI iIc SEDI
guidclincs rcfcrrcd io in Noic 1(ai on scIcdulc 1 and Noic 2 on ScIcdulc 17 io accounis | io a
conpany covcrcd in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci, rcfcrrcd io in
paragrapI 3.18 lclow.

3.6 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIc Conpany Ias
conplicd wiiI iIc dircciivcs issucd ly Fcscrvc Danl of India and iIc provisions of Scciions 58A
and 58AA of iIc Aci or any oiIcr rclcvani provisions of iIc Aci and iIc Conpanics (Acccpiancc of
Dcposiisi Fulcs, 1975 wiiI rcgard io iIc dcposiis acccpicd fron iIc pullic. According io iIc
infornaiion and cplanaiions givcn io us , no Ordcr Ias lccn passcd ly iIc Conpany Law Doard
or Naiional Conpany Law Trilunal or Fcscrvc Danl of India or any Couri or any oiIcr Trilunal
on iIc Conpany in rcspcci of iIc aforcsaid dcposiis.

3.7 In our opinion, iIc Conpany Ias an inicrnal audii sysicn conncnsuraic wiiI iis sizc and
naiurc of iis lusincss.

3.8 Wc Iavc lroadly rcvicwcd iIc lools of accouni nainiaincd ly iIc Conpany in rcspcci of
producis wIcrc, pursuani io iIc Fulcs nadc ly iIc Ccniral Covcrnncni of India nainicnancc of
cosi rccords Ias lccn prcscrilcd undcr clausc (di of sul-scciion (1i of Scciion 209 of iIc Aci and
arc of iIc opinion iIai prina facic, iIc prcscrilcd accounis and rccords Iavc lccn nadc and
nainiaincd. Wc Iavc noi, Iowcvcr, nadc a dciailcd caninaiion of iIc rccords wiiI a vicw io
dcicrninc wIciIcr iIcy arc accuraic or conplcic.

3.9 (ai According io iIc infornaiion and cplanaiions givcn io us and iIc rccords of iIc Conpany
canincd ly us, in our opinion, iIc Conpany is rcgular in dcposiiing iIc undispuicd
siaiuiory ducs including providcni fund, invcsior cducaiion and proicciion fund,
cnployccs' siaic insurancc, inconc-ia, salcs-ia, wcaliI ia, scrvicc ia, cusions duiy,
ccisc duiy, ccss and oiIcr naicrial siaiuiory ducs as applicallc wiiI iIc appropriaic
auiIoriiics.
(li According io iIc infornaiion and cplanaiions givcn io us and iIc rccords of iIc Conpany
canincd ly us, iIc pariiculars of ducs of inconc-ia, salcs ia, wcaliI ia, scrvicc ia,
cusions duiy, ccisc duiy and ccss as ai 31
si
MarcI 2007 wIicI Iavc noi lccn dcposiicd
on accouni of a dispuic arc as follows .
Nanc of iIc
Siaiuc
Naiurc of iIc Ducs Anouni
(Fupccs in
LalIsi
Forun wIcrc iIc Dispuic
is Pcnding
Inconc Ta Aci,
1961
Inconc Ta 235.49 Connissioncr of Inconc
Ta (Appcalsi
Kcrala Salcs Ta
Aci, 1963
Inicrcsi on dclaycd
payncni of Salcs Ta
193.27 TIc HigI Couri of Kcrala
Kcrala Salcs Ta
Aci, 1963
Salcs Ta 1.39 Kcrala Salcs Ta
Appcllaic Trilunal


3.10 TIc Conpany Ias no accunulaicd losscs as ai 31
si
MarcI 2007 and ii Ias noi incurrcd any
casI losscs in iIc financial ycar cndcd on iIai daic or in iIc inncdiaicly prcccding financial
ycar.

3.11 According io iIc infornaiion and cplanaiions givcn and iIc rccords of iIc Conpany canincd
ly us, iIc Conpany Ias noi dcfaulicd in rcpayncni of ducs io any financial insiiiuiion or
lanl or dclcniurc Ioldcrs as ai iIc Dalancc SIcci daic.

3.12 TIc Conpany Ias noi granicd any loans and advanccs on iIc lasis of sccuriiy ly way of
plcdgc of sIarcs, dclcniurcs and oiIcr sccuriiics.

3.13 TIc provisions of any spccial siaiuic applicallc io cIii fund1 nidIi 1nuiual lcncfii fund1


sociciics arc noi applicallc io iIc Conpany.

3.14 In our opinion, iIc Conpany is noi a dcalcr or iradcr in sIarcs, sccuriiics, dclcniurcs and
oiIcr invcsincnis.

3.15 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, iIc icrns and
condiiions of iIc guaraniccs givcn ly iIc Conpany, for loans ialcn ly oiIcrs fron lanls or
financial insiiiuiions during iIc ycar, arc noi prcjudicial io iIc inicrcsi of iIc Conpany.

3.16 In our opinion and according io iIc infornaiion and cplanaiions givcn io us, on an ovcrall
lasis, iIc icrn loans Iavc lccn applicd, including Fs.2364.54 lalIs in iIc sulscqucni pcriod,
for iIc purposcs for wIicI iIcy wcrc oliaincd.

3.17 On iIc lasis of an ovcrall caninaiion of iIc Dalancc SIcci of iIc Conpany, in our opinion
and according io iIc infornaiion and cplanaiions givcn io us, iIcrc arc no funds raiscd on a
sIori-icrn lasis wIicI Iavc lccn uscd for long icrn invcsincni.

3.18 TIc Conpany Ias alloiicd cquiiy sIarcs on convcrsion of Convcriillc Warranis issucd on
prcfcrcniial lasis rcfcr noic 1(ai on ScIcdulc 1 io Accounis | including io a conpany covcrcd
in iIc rcgisicr nainiaincd undcr Scciion 301 of iIc Aci during iIc ycar. In our opinion and
according io iIc infornaiion and cplanaiions givcn io us, iIc priccs ai wIicI sucI
Convcriillc Warranis Iavc lccn issucd, vidc paragrapI 3.5 (li alovc, arc noi prcjudicial io iIc
inicrcsi of iIc Conpany.

3.19 TIc Conpany Ias crcaicd sccuriiy or cIargc in rcspcci of dclcniurcs issucd and ouisianding
ai iIc ycar-cnd.

3.20 TIc Conpany Ias noi rcccnily raiscd any noncy ly pullic issuc.

3.21 During iIc coursc of our caninaiion of iIc lools and rccords of iIc Conpany, carricd oui in
accordancc wiiI iIc gcncrally acccpicd audiiing praciiccs in India, and according io iIc
infornaiion and cplanaiions givcn io us, wc Iavc nciiIcr conc across any insiancc of fraud
on or ly iIc Conpany, noiiccd or rcporicd during iIc ycar, nor Iavc wc lccn inforncd of sucI
casc ly iIc nanagcncni.

4. FuriIcr io our conncnis in paragrapI 3 alovc, wc rcpori iIai.

(ai Wc Iavc oliaincd all iIc infornaiion and cplanaiions, wIicI io iIc lcsi of our lnowlcdgc and
lclicf wcrc ncccssary for iIc purposcs of our audii;
(li In our opinion, propcr lools of accouni as rcquircd ly law Iavc lccn lcpi ly iIc Conpany so
far as appcars fron our caninaiion of iIosc lools;
(ci TIc Dalancc SIcci, Profii and Loss Accouni and CasI Flow Siaicncni dcali wiiI ly iIis rcpori
arc in agrccncni wiiI iIc lools of accouni;
(di In our opinion, iIc Dalancc SIcci, Profii and Loss Accouni and CasI Flow Siaicncni dcali
wiiI ly iIis rcpori conply wiiI iIc accouniing siandards rcfcrrcd io in sul-scciion (3Ci of
Scciion 211 of iIc Aci;
(ci On iIc lasis of wriiicn rcprcscniaiions rcccivcd fron iIc dircciors, as on 31
si
MarcI 2007 and
ialcn on rccord ly iIc Doard of Dircciors, nonc of iIc dircciors is disqualificd as on 31
si
MarcI
2007 fron lcing appoinicd as a dirccior in icrns of clausc (gi of sul-scciion (1i of Scciion 274
of iIc Aci;
(fi In our opinion and io iIc lcsi of our infornaiion and according io iIc cplanaiions givcn io us,
iIc said financial siaicncnis iogciIcr wiiI iIc noics iIcrcon and aiiacIcd iIcrcio givc in iIc
prcscrilcd nanncr iIc infornaiion rcquircd ly iIc Aci, and givc a iruc and fair vicw in
conforniiy wiiI iIc accouniing principlcs gcncrally acccpicd in India.
(ii in iIc casc of iIc Dalancc SIcci, of iIc siaic of affairs of iIc Conpany as ai 31
si
MarcI
2007;
(iii in iIc casc of iIc Profii and Loss Accouni, of iIc profii for iIc ycar cndcd on iIai daic; and
(iiii in iIc casc of iIc CasI Flow Siaicncni, of iIc casI flows for iIc ycar cndcd on iIai daic.
P. Law
Pu)tnc)
(McnlcrsIip nunlcr 51790i
for and on lcIalf of
Kollaia PFICE WATEFHOUSE,
26
iI
Junc, 2007 CIaricrcd Accounianis.








BDODQcH SKHHt DV Dt 31
Vt
MDUcK,200?

AV Dt AV Dt
31Vt MDUcK ,200? 31Vt MDUcK,2006
ScKHGuOH
RupHHV LQ LDkKV RupHHV LQ LDkKV
SRuUcHV RI FuQGV
SHAFEHOLDEFS' FUNDS
SIarc Capiial 1 2,S2S.23 1,??S.1S
Convcriillc Warranis issucd and alloiicd (Noic 2 ScIcdulc 17i 44?.00 -
Fcscrvcs and Surplus 2 13,60S.20 ?,64S.3?

16,SS0.43 9,420.S2
LOAN FUNDS 3
Sccurcd Loans 23,1S4.4? 22,614.92
Unsccurcd Loans 1,S3S.21 13,0S9.96

24,992.6S 3S,?04.SS

Dcfcrrcd Ta Lialiliiy (Ncii Noic 12 on ScIcdulc 17| 4,336.6S 2,S34.S3

4S,909.?6 4?,960.23
AppOLcDtLRQ RI FuQGV
FIXED ASSETS 4
Cross Dlocl 44,?1?.03 44,SS2.26
Lcss. Dcprcciaiion 1S,6S6.SS 16,6S3.64
Nci Dlocl 26,030.4S 2?,S6S.62
Capiial Epcndiiurc In Progrcss (Noic 11.4 on ScIcdulc 17i 2,10?.61 3S1.3?
2S,13S.09 2S,219.99

INVESTMENTS 5 2,S0S.S2 2,906.S3

CUFFENT ASSETS, LOANS AND ADVANCES
Invcniorics 6 11,4SS.S3 9,109.16
Sundry Dcliors 7 23,366.SS 22,211.S9
CasI and Danl Dalanccs 8 4,216.41 3,114.3?
OiIcr Currcni Asscis 9 2,463.04 2,?69.S6
Loans and Advanccs 10 1,402.SS 1,S0S.91
42,934.?1 39,010.S9
Lcss.
CUFFENT LIADILITIES AND PFOVISIONS
Lialiliiics 11 2?,4S0.S9 22,306.SS
Provisions 12 S90.90 -
2S,0?1.?9 22,306.SS

14,S62.92 16,?04.34

MISCELLANEOUS EXPENDITUFE (TO THE EXTENT
NOT WFITTEN OFF OF ADJUSTEDi
Payncnis undcr Voluniary Fciircncni ScIcncs 103.23 129.3?

4S,909.?6 4?,960.23
NRtHV RQ AccRuQtV 17





PURILt DQG LRVV AccRuQt IRU tKH yHDU HQGHG 31Vt MDUcK,200?
YHDU EQGHG Ycar Endcd
INCOME ScKHGuOH 31Vt MDUcK,200? 31si MarcI,2006

RupHHV LQ LDkKV Fupccs in LalIs

Salcs - Carlon Dlacl 111,2?6.24 81,725.09
Lcss . Ecisc Duiy 12,469.0S 9S,S0?.19 9,686.36 72,038.73

Salcs - Powcr 1,0S4.62 825.83
OiIcr Inconc 13 40S.69 177.01
Closing Siocl of FinisIcd Coods 1,399.13 101,669.63 1,998.35 75,039.92

EXPENDITURE

Opcning Siocl of FinisIcd Coods 1,99S.3S 2,003.10
Faw Maicrials Consuncd 14 6?,262.00 50,707.05
Epcnscs 15 22,6S?.S9 19,086.40
Dcprcciaiion 2,036.4S 2,048.01
Inicrcsi 3,260.2? 3,064.97
( Noic 23 on ScIcdulc 17 i
9?,214.99 76,909.53

PROFIT / (LOSS) BEFORE TAXATION 4,4S4.64 (1869.61i

Provision for Taaiion
Currcni Ta S2S.3S -
Dcfcrrcd Ta (rclcasci1 cIargc 1,S01.S2 (458.41i
Fringc Dcncfii Ta ?4.24 96.04

PROFIT / (LOSS) AFTER TAXATION 2,3S3.20 (1507.24i

Dalancc lrougIi forward fron
prcvious ycar 1,999.1S 3,506.42

Profii availallc for Appropriaiion 4,3S2.3S 1,999.18

Proposcd Dividcnd S0S.06 -
Ta on Proposcd Dividcnd SS.S4 -

3,?61.4S 1,999.18

Transfcrrcd io Ccncral Fcscrvc 1??.00 -

Dalancc Carricd io Dalancc SIcci 3,SS4.4S 1,999.18
(ScIcdulc 2i

Earnings1 ( Lossi pcr SIarc (Fs.i 16
-Dasic 11.?S (8.49i
-Diluicd 11.4? (8.49i

NRtHV RQ AccRuQtV 17




ScKHGuOHV IRUmLQJ pDUt RI tKH BDODQcH SKHHt
AV Dt As ai
31Vt MDUcK, 200? 31si MarcI, 2006
SCHEDULE 1 - SHARE CAPITAL RupHHV LQ LDkKV Fupccs in LalIs
AUTHOFISED
31,500,000 Equiiy SIarcs of Fs.101- cacI 3,1S0.00 3,1S0.00

ISSUED, SUDSCFIDED AND PAID UP
17,213,779 (31.03.2006-9,713,779i
Equiiy SIarcs of Fs. 101- cacI 1,?21.3S 9?1.3S
fully paid up in casI (Noic 1 lclowi

Lcss . Alloincni Moncy rcccivallc 0.10 0.1S
1,?21.2S 9?1.20
3,692,750 Equiiy SIarcs of Fs.101- cacI
alloiicd as fully paid up lonus
sIarcs ly capiialisaiion of
SIarc Prcniun Accouni and
Fcvcnuc Fcscrvc (Noic 2 lclowi 369.2S 369.2S


4,346,667 Equiiy SIarcs of Fs.101- cacI fully 434.6? 434.6?
paid up oiIcr iIan casI

2,S2S.23 1,775.15

Noics. 1i (ai Including 35,00,000 Equiiy SIarcs of Fs 10 cacI alloiicd on prcfcrcniial lasis and 40,00,000 Equiiy SIarcs
of Fs 10 cacI alloiicd on convcrsion of cqual nunlcr of Convcriillc Warranis issucd on prcfcrcniial lasis
pursuani io iIc Mcnlcrs of iIc Conpany in accordancc wiiI SEDI Cuidclincs.
(li Alloincni of 1,823 SIarcs is pcnding againsi FigIis issuc nadc during 1993-94..
2i Of iIc 3,692,750 SIarcs ,48 SIarcs Iavc noi lccn issucd io iIc conccrncd non-rcsidcni sIarcIoldcrs pcnding
approval of iIc Fcscrvc Danl of India.

SCHEDULE 2 - RESERVES AND SURPLUS


Fcscrvcs
SIarc Prcniun
Dalancc as pcr lasi Accouni 2,444.14 2,441.80
Add. Fcccivcd during iIc ycar (Noics 1 and 2 lclowi 4,200.S3 6,644.6? 2.34 2,444.14

Capiial Fcscrvc
Dalancc as pcr lasi Accouni 1S6.S1 31.33
Add. Sulsidy undcr Wcsi Dcngal Capiial Invcsincni
Sulsidy ScIcnc - 1S6.S1 125.48 156.81


Dclcniurc Fcdcnpiion Fcscrvc 312.S0 312.50

Ccncral Fcscrvc
Dalancc as pcr lasi Accouni 2,?32.?4 2,732.74
Add. Transfcr fron Profii and Loss Accouni 1??.00 2,909.?4 - 2,732.74

Surplus
Profii and Loss Accouni 3,SS4.4S 1,999.18


13,60S.20 7,645.37

Noic . 1. Including Fs 4,200 lalIs rcccivcd on Equiiy SIarcs alloiicd on Prcfcrcniial lasis Fcfcr Noic 1(ai on
ScIcdulc 1|
2. Nci of alloincni noncy rcccivallc on accouni of SIarc Prcniun Fs 0.82 lalI (31.03.2006-Fs 1.35
lalIsi.




SCHEDULE 3 - LOAN FUNDS AV Dt As ai
31Vt MDUcK ,200? 31si MarcI,2006

SECURED LOANS RupHHV LQ LDkKV Fupccs in LalIs


Dclcniurcs-
8.60% Fcdccnallc Non-Convcriillc Dclcniurcs 1,000.00 2,000.00
(Noic 1 lclowi

Fron Danls (Noic 2 lclowi

-Worling Capiial Dcnand Loan 1,200.00 736.69

-CasI Crcdii1Danl Ovcrdrafi faciliiics 4,S3?.44 7,513.87

-Forcign Currcncy Non-Fcpairiallc Loans ??1.?? 4,061.91

-Inicrcsi accrucd and duc - 6.03

-Epori Pacling Crcdii Loans1Posi SIipncni Dcnand Loans againsi Eporis 2,6S?.?1 3,522.08

-Inicrcsi accrucd and duc 6.96 0.76

Dcposiis fron Pullic - 82.68

Dcposii fron Dircciors - 5.00

Tcrn Loans fron Danls (Noic 3 lclowi 12,S90.01 3,185.57

Inicrcsi accrucd and duc 4S.S4 0.88

Tcrn Loan fron Non Danling Financial Conpany - 1,463.76

VcIiclc Loans fron Danls (Noic 4 lclowi 11.?4 35.69

23,1S4.4? 22,614.92


UNSECURED LOANS
Loan fron Danls -SIori icrn - 3,990.19
Inicrcsi accrucd and duc - 3.29

Inicrcorporaic Dcposiis - SIori icrn - 844.89

Dcalcrs Sccuriiy Dcposiis 8.00 8.00

Salcs Ta Dcfcrrcd Loans (Noic 5 lclowi 1,453.12 1,746.42

Eicrnal Conncrcial Dorrowing (Noic 6 lclowi 377.09 6,497.15

Tcnporary Danl Ovcrdrafi - 0.02

1,S3S.21 13,089.96

NRtHV:
1 .


8.60 % Sccurcd Fcdccnallc Non-Convcriillc Dclcniurcs (privaicly placcd i arc sccurcd ly way of rcgisicrcd norigagc of iIc
innovallc propcriy in iIc Kalol sul-disirici in iIc Siaic of Cujarai.TIc ouisianding anouni as ai 31si MarcI, 2007 (aficr
rcdcnpiion of Fs.1,000 lalIs on 31si Dcccnlcr, 2006i arc duc for rcdcnpiion ai par on 31si Dcccnlcr, 2007.
2 . CasI Crcdii1 Danl Ovcrdrafi faciliiics1 Loans - undcr consoriiun arrangcncnis arc wiiI Danl of Daroda, AllaIalad Danl ,
Epori and Inpori Danl of India, ICICI Danl Lid., Siaic Danl of Dilancr & Jaipur and Ciiilanl NA ai Kollaia ; Siaic Danl
of India, Indian Ovcrscas Danl and Siaic Danl of Travancorc ai KocIi ; Syndicaic Danl and Fcdcral Danl ai Munlai. TIc
alovc CasI crcdii1 Danl Ovcrdrafi faciliiics1loans arc sccurcd ly way of IypoiIccaiion in favour of iIc said lanls as and ly
way of firsi cIargc, ranling pari-passu anong iIcnsclvcs, of iIc Conpany's cisiing and fuiurc siocl of Faw Maicrials,
FinisIcd and Scni FinisIcd Coods, Consunallc Siorcs and Sparcs, including Siocl in Transii and in iIc posscssion of any
iIird pariy, prcscni and fuiurc Dool dclis, Monics Fcccivallc, Clains, cic. Icld ly any iIird pariy io iIc ordcr of iIc
disposiiion of iIc conpany and also ly a pu)-pussu sccond cIargc crcaicd on iIc ficd asscis of iIc Conpany ai Durgapur
in Wcsi Dcngal ccluding 30 MW Co-gcncraiion Powcr Plani, Palcj in Cujarai and Karinugal in KocIi.



3 . Tcrn Loans fron Danls .

Tcrn Loan fron Danls oiIcr iIan loan fron ICICI Danl Lid for 30 MW Co-gcncraiion Powcr Plani ai Durgapur arc sccurcd
on a pu)-pussu firsi cIargc lasis on all iIc innovallc propcriics of iIc Conpany siiuaicd ai Durgapur in Wcsi Dcngal
ccluding 30 MW Co-gcncraiion Powcr Plani, Palcj in Cujarai and Karinugal in KocIi and iIc Conpany's Movallc Plani and
MacIincry, MacIincry Sparcs, Tools and Acccssorics and oiIcr novallc propcriics loiI prcscni and fuiurc and also sccurcd
ly pu)-pussu sccond cIargc on iIc Conpany's cisiing and fuiurc siocl of Faw Maicrials, FinisIcd and Scni FinisIcd
Coods, Consunallc Siorcs and Sparcs, including Siocl in Transii and in iIc posscssion of any iIird pariy, prcscni and
fuiurc Dool Dclis, Monics Fcccivallc, Clains, cic Icld ly any iIird pariy io iIc ordcr or iIc disposiiion of iIc Conpany.

Tcrn Loan fron ICICI Danl Lid for 30 MW Co-gcncraiion Powcr Plani ai Durgapur is sccurcd ly an cclusivc cIargc on iIc
innovallc and novallc propcriics pcriaining io iIc 30 MW Co-gcncraiion Powcr Plani ai Durgapur.
4 . VcIiclc loans fron Danls arc Sccurcd ly way of IypoiIccaiion of iIc vcIiclcs financcd ly sucI loans.
5 . Salcs Ta Dcfcrrcd Loans1 Ouipui Ta Dcfcrrcd Loans allowcd ly iIc Siaic Covcrnncnis of Wcsi Dcngal and Kcrala arc

rcpayallc in siipulaicd pcriodic insiallncnis conncncing fron May 2001, Augusi 2006 (Wcsi Dcngali and July 2007
(Kcralai rcspcciivcly, aggrcgaic anouni of sucI insiallncnis rcpayallc wiiIin onc ycar is Fs.186.17 lalIs. (Prcvious ycar -Fs
232.04 lalIsi
6 . Eicrnal Conncrcial Dorrowing rcpayallc wiiIin onc ycar Fs.188.55 lalIs (31.03.2006 - Fs.6,110.09 lalIsi

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Noics.-
(ai Cosi and accunulaicd dcprcciaiion includc Fs. 2,915.57 lalIs (31.03.2006 Fs. 2,888.41 lalIsi and Fs. 695.84 lalIs
(31.03.2006 Fs. 608.48 lalIsi rcspcciivcly in rcspcci of Duildings on lcascIold land.

(li Includcs Fs 84.00 lalIs (31.03.2006 Fs. 84.00 lalIsi lcing cosi of rcnovaiion of rcnicd officc faciliiics lcing coniinuously
uscd sincc inccpiion and Fs. 9.84 lalIs (31.03.2006 Fs. 9.84 lalIsi lcing onc-siiI sIarc of joinily owncd propcriy.

(ci Includcs adjusincni of Fs 5.66 lalIs (nci gaini Prcvious ycar - Fs. 12.16 lalIs (nci lossi| on accouni of forcign ccIangc
fluciuaiion.
(di Includcs Fs.5,995.27 lalIs addcd on rcvaluaiion on 30iI Scpicnlcr, 2001 as undcr.
Fupccs LalIs
FrccIold Land 554.41

LcascIold Land, Acquisiiion and
Dcvclopncni Epcnscs 112.71
Duildings 706.25
Non-Faciory Duildings and Flais 458.93
Plani and MacIincry 3,749.91
Elccirical Insiallaiions 413.06
5,995.27



SCHEDULE S -INVESTMENTS (LRQJ-THUm) AV Dt As ai
[NRtH 1(YL) RQ ScKHGuOH 1?] 31Vt MDUcK, 200? 31si MarcI, 2006
RupHHV LQ LDkKV RupHHV LQ LDkKV


TFADE-Ouoicd
5,540,991 Fully paid Equiiy SIarcs of Fs 101- cacI in Ccai Lid . 2,614.91 2,614.91
OTHEF THAN TFADE- Ouoicd
600,000 Fully paid Equiiy SIarcs of Fs.101- cacI in Norplc Oal India Lid. 60.00 60.00
1,910,000 Fully paid Equiiy SIarcs of Fs.101- cacI in Maplc Circuiis Lid. 191.01 191.01
17,417 6.75% Ta Frcc US-64 Donds of Fs.1001-cacI in Unii Trusi of India 21.09 21.09
77,000 Fully paid Equiiy SIarcs of Fs 101- cacI in CESC Lid . 1S0.1S 1S0.1S
7,186 Fully paid Equiiy SIarcs of Fs.101- cacI in Danl of Daroda 16.S3 16.S3
11,400 Fully paid Equiiy SIarcs of Fs.101- cacI in Indian Ovcrscas Danl 2.?4 2.?4
441. S2 441.S2
Unquoicd

50 Fully paid Prcfcrcncc SIarcs of Fs.1001- cacI in Norplc Oal India Lid. 0.0S 0.05

50 Fully paid Prcfcrcncc SIarcs of Fs.1001- cacI in 0.0S 0.05
Maplc Circuiis Lid. 0.10 0.10
3,0S6.S3 3,056.53
Lcss . Provision for dininuiion in valuc of Invcsincnis 2S1.01 150.00
2,S0S.S2 2,906.53
Noics. (ai Aggrcgaic anouni of quoicd invcsincnis 2,S0S.42 2,906.43
Marlci valuc (ccluding Norplc Oal India Lid. and Maplc Circuiis Lid.
in alscncc of any currcni quoiaiion i Fs 6,310.72 lalIs
( 31.03.2006 - Fs. 3,983.25 lalIs i
(li Aggrcgaic anouni of Unquoicd Invcsincnis 0.10 0.10
2,S0S.S2 2,906.53
( ci Uniis of Muiual Funds purcIascd and sold during iIc ycar

Nunlcr
of Dool Valuc
uniis Fupccs in lalIs
DSP Mcrill LyncI Liquidiiy Fund -Fcgular-CrowiI 862,864 150.00
UTI Liquid CasI Plan Insiiiuiional -CrowiI Opiion 100,162 1,200.00
JM HigI Liquidiiy Fund- Prcniun Plan- Daily Dividcnd 3,002,867 300.29

SCHEDULE 6 - INVENTORIES
[NRtH 1(YLL) RQ ScKHGuOH 1?]
Siorcs and Sparcs 1,043.46 968.88
Faw Maicrials 9,043.24 6,141.93
FinisIcd Coods 1,399.13 1,998.35
11,4SS.S3 9,109.16

SCHEDULE ? - SUNDRY DEBTORS (UNSECURED)
Dclis ouisianding for a pcriod ccccding si noniIs
Considcrcd Cood 4,446.29 4,263.29
Considcrcd Douliful 1063.?0 439.00

Lcss . Provision 1063.?0 - 439.00 -
4,446.29 4,263.29
OiIcr Dclis - Considcrcd Cood 1S,920.26 17,948.30
23,366.SS 22,211.59

SCHEDULE S - CASH AND BANK BALANCES
CasI in Hand (including cIcqucs in Iand 2.42 21.37
Fs. 17.85 lalIs as ai 31.03.2006 i
Fcniiianccs in Transii 909.16 606.89
WiiI ScIcdulcd Danls.
-On Currcni Accounis 2S9.23 291.49
-On Unpaid and Unclaincd Dividcnd Accounis 30.S? 34.37
(as pcr conira ScIcdulc 11i
-On SIori Tcrn Dcposiis - 44.51
-On Margin Moncy Accouni againsi 3,01S.03 2,115.74
Lciicr of Crcdii1Cuaranicc
4,216.41 3,114.37




SCHEDULE 9 - OTHER CURRENT ASSETS - CONSIDERED GOOD AV Dt As ai
31
Vt
MDUcK, 200? 31
si
MarcI, 2006
RupHHV LQ LDkKV Fupccs in LalIs
Dcposii wiiI Cusions, Pori Trusi and Ecisc AuiIoriiics cic. S09.4? 782.95
Sccuriiy dcposii for loan fron Non Danling Financial Conpany - 142.67
OiIcr dcposiis 643.10 370.20
including Fs 0.80 lalI - (31.03.2006 - Fs. 0.80 lalIi
in iIc forn of Naiional Savings Ccriificaic II Scrics|

Accruals undcr Duiy Ecnpiion ScIcnc pcriaining io cporis 1 S3S.14 1,263.41
dccncd cporis
Accrucd lcncfii undcr Duiy Drawlacl 1?2.33 210.63

2,463.04 2,769.86
includcs Fs. 703.98 lalIs (31.03.2006 - Fs. 1,045.64 lalIs i lcing accrucd lcncfii undcr Duiy Frcc Crcdii Eniiilcncni ScIcnc,
io wIicI iIc Conpany is cligillc.


SCHEDULE 10 - LOANS AND ADVANCES
Unsccurcd - Considcrcd good
Advanccs rccovcrallc in casI or in lind or
for valuc io lc rcccivcd .
Inicrcorporaic Dcposiis 199.3? 183.03
including inicrcsi duc Fs 66.62 lalIs (31.03.2006 - Fs 44.53 lalIsi

OiIcrs (Noic 10 on ScIcdulc 17i SS3.6? 1,025.95

Advancc payncni of Tacs, cic.
nci of provision for iaaiion Fs. 3,754.97 lalIs,
(31.03.2006 - Fs. 3,155.35 lalIsi| 619.S4 596.93
1,402.SS 1,805.91

AV Dt As ai
31Vt MDUcK, 200? 31si MarcI, 2006
RupHHV LQ LDkKV Fupccs in LalIs
SCHEDULE 11 - LIABILITIES
Acccpianccs

209.6?

495.35
Sundry Crcdiiors Noic 1 lclow|

2?,124.?6

21,647.96

Invcsior Educaiion and Proicciion Fund sIall lc crcdiicd
ly iIc following anounis .
-Unpaid dividcnd (as pcr conira ScIcdulc 8i Noic 2 lclow |

30.S?

34.37
-Unpaid naiurcd dcposiis Noic 3 lclow |

10.?6

12.35
Inicrcsi Accrucd lui noi duc on lorrowings

10S.13

116.52



2?,4S0.S9

22,306.55

Noics . 1. Fcprcscnis anounis duc io pariics oiIcr iIan Snall Scalc Indusirial Undcrialings. In alscncc
of any spccific infornaiion availallc wiiI iIc Conpany in rcspcci of any supplicr
aiiraciing provisions of iIc Micro, Snall and Mcdiun Enicrpriscs Dcvclopncni Aci, 2006, no
disclosurc1 ircaincni as pcr iIc Aci Ias lccn considcrcd ncccssary
2. No anouni was duc for dcposii as on iIc Dalancc sIcci daic.
3. No anouni was duc for dcposii as on 31si MarcI, 2007 (31.03.06-Fs 0.50 lalIi.

SCHEDULE 12 - PROVISIONS


Proposcd Dividcnd

S0S.06

-
Ta on Proposcd Dividcnd

SS.S4

-


S90.90

-




YHDU EQGHG Ycar Endcd
31Vt MDUcK,200? 31si MarcI,2006
SCHEDULE 13 - OTHER INCOME RupHHV LQ LDkKV Fupccs in LalIs
Inicrcsi
(Cross-Ta dcducicd ai sourcc Fs.15.79 lalIs,
Prcvious ycar - Fs. 11.14 lalIsi
-On Dcposiis 3S.S3 44.33
-On OiIcrs 23.1S 62.01 9.27 53.60
Dividcnd
-Fron invcsincnis (oiIcr iIan iradci 2.S? 0.11
Fcvcnuc fron Carlon crcdii 2??.66 -

Profii on Salc of Invcsincni (ncii 1.33 -
Misccllancous 64.S2 123.30

40S.69 177.01
SCHEDULE 14 - RAW MATERIALS CONSUMED

Opcning Siocl 6,141.93 7,419.51

Add . PurcIascs nci of consunpiion ?0,163.31 49,429.47
Fs. 22.83 lalIs (Prcvious ycar -
Fs.9.59 lalIsi cIargcd io rcscarcI and
dcvclopncni cpcnscs and Fs 2,968.71 lalIs
(Prcvious ycar- Fs.2,319.35 lalIsi lcing
lcncfiis undcr duiy ccnpiion scIcncs
pcriaining io cporis 1 dccncd cporis
and duiy drawlacl.|
?6,30S.24 56,848.98

Lcss. Closing Siocl 9,043.24 6,141.93

6?,262.00 50,707.05


SCHEDULE 1S - EXPENSES

Salarics, Wagcs and Donus 1,996.06 1,796.71
ccluding Fs 26.63 lalIs (Prcvious ycar
- Fs. 29.64 lalIsi cIargcd io FcscarcI and
Dcvclopncni Epcnscs|

Coniriluiion io Providcni Fund, 261.9? 211.10
Supcrannuaiion Fund and Craiuiiy Fund
ccluding Fs 3.21 lalIs ( Prcvious ycar
- Fs. 3.20 lalIsi cIargcd io FcscarcI and
Dcvclopncni Epcnscs|

Lalour and Siaff Wclfarc 249.S? 224.00
ccluding Fs 0.79 lalI (Prcvious ycar Nili
cIargcd io FcscarcI and Dcvclopncni Epcnscs|

Consunpiion of Siorcs, Sparcs 3,1S4.43 2,558.88
and Pacling Maicrials
Prcvious ycar ccluding - Fs. 2.90 lalIs
cIargcd io FcscarcI and Dcvclopncni Epcnscs|
Powcr and Fucl S46.26 559.45

Waicr CIargcs S9.40 93.25
Fcni 62.20 62.90
Faics and Tacs 1S?.1S 42.55
Mainicnancc and Fcpairs .
-Duildings ccluding Fs 0.14 lalI (Prcvious ycar - Nili 160.9? 88.65
cIargcd io FcscarcI & Dcvclopncni Epcnscs|

-Plani and MacIincry 4?6.43 248.78
-OiIcrs 1S3.3? 157.09
?90.?? 494.52
Carricd Ovcr ?33?.S4 6043.36




YHDU EQGHG Ycar Endcd
31Vt MDUcK,200? 31si MarcI,2006
SCHEDULE 1S - OTHER INCOME (Con1d.)
RupHHV LQ LDkKV Fupccs in LalIs
H)ougIt Fo)uu)d ?33?.S4 6043.36

Insurancc S2.S0 103.60

Travclling and Transpori Epcnscs 369.0S 334.28
Sulscripiions and Donaiions 30.9S 17.87

Discouniing CIargcs 2S?.S9 115.65

Misccllancous Epcnscs 3,S0?.3S 3,082.22
ccluding Fs 4.61 lalIs (Prcvious ycar - Nili cIargcd
io FcscarcI & Dcvclopncni Epcnscs|

FrcigIi Ouiward 2,064.42 1,547.53

Connission and Discouni ?,S60.20 6,933.57

Dircciors' Fccs 4.6S 4.65

FcscarcI and Dcvclopncni Epcnscs SS.21 46.56

Loss on Salc of Ficd Asscis (ncii 4?.10 18.10

Loss on Forcign EcIangc Fluciuaiions (ncii 311.99 643.01

Provision for dininuiion in valuc of Invcsincnis 101.01 16.00

Provision for Douliful Dclis 624.?0 180.00

22,6S?.S9 19,086.40


SCHEDULE 16 - BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE YHDU EQGHG Ycar Endcd
31Vt MDUcK,200? 31si MarcI,2006

Adjusicd Nunlcr of Equiiy SIarcs ai iIc lcginning of iIc pcriod 1?,?S1,432
(1i
17,748,086
(3i

Adjusicd Nunlcr of Equiiy SIarcs ai iIc cnd of iIc pcriod 2S,2S2,1S2
(2i
17,751,432
(1i

WcigIicd avcragc nunlcr of Equiiy SIarcs ouisianding during iIc pcriod (Dasic EPSi 20,022,903
(4i
17,750,812
(6i

WcigIicd avcragc nunlcr of Equiiy SIarcs ouisianding during iIc pcriod (Diluicd EPSi 20,S09,0?0
(5i
17,750,812
(6i

Noninal Valuc of cacI Equiiy SIarc (Fs.i 10 10
Profii1(Lossi aficr Taaiion availallc for Equiiy SIarcIoldcrs (Fupccs in LalIsi 2,3S3.20 (1,507.24i
Dasic carnings1(lossi pcr SIarc (Fs.i 11.?S (8.49i
Diluicd carnings1(lossi pcr SIarc (Fs.i 11.4? (8.49i

AGjuVtHG
NumbHU RI
EquLty SKDUHV
(1i (2i (3i
AV Dt 31Vt MDUcK, 2006/ 1Vt ApULO
2006 AV Dt 31Vt MDUcK, 200? AV Dt 1Vt ApULO, 200S
Toial Toial Toial
Nunlcr of SIarcs
issucd 17,706,182

47,014 17,753,196

25,206,182

47,014

25,253,196

17,706,182

47,014 17,753,196
Noninal Valuc
(Fs.i

177,061,820

470,140 177,531,960

252,061,820

470,140

252,531,960

177,061,820

470,140 177,531,960
Paid up Valuc
(Fs.i

177,061,820

452,500 177,514,320

252,061,820

460,000

252,521,820

177,061,820

419,035 177,480,855
Adjusicd Nunlcr of
sIarcs

17,706,182

45,250 17,751,432

25,206,182

46,000

25,252,182

17,706,182

41,904 17,748,086


WHLJKtHG DYHUDJH QumbHU RI VKDUHV IRU BDVLc EPS WHLJKtHG DYHUDJH QumbHU RI VKDUHV IRU DLOutHG EPS

(4i (5i
YHDU HQGHG 31Vt MDUcK, 200? YHDU HQGHG 31Vt MDUcK, 200?
Daic
No of SIarcs
Ouisianding
Days
Proporiionaic
Daic
No of SIarcs
Ouisianding
Days
Proporiionaic
nunlcr of nunlcr of


sIarcs sIarcs
ouisianding ouisianding
1-Apr-06 17,751,432 199 9,678,178 1-Apr-06 17,751,432 199 9,678,178
17-Oci-06 21,251,432 50 2,911,155 17-Oci-06 21,251,432 3 174,669
6-Dcc-06 21,252,182 54 3,144,158 20-Oci-06 22,578,994 3 185,581
29-Jan-07 25,252,182 62 4,289,412 23-Oci-06 23,021,514 44 2,775,196
WcigIicd avcragc nunlcr 20,022,903 6-Dcc-06 23,022,264 54 3,406,034
29-Jan-07 25,252,182 62 4,289,412
WcigIicd avcragc nunlcr 20,509,070


(6i
YHDU HQGHG 31Vt MDUcK, 2006 RHcRQcLOLDtLRQ RI WHLJKtHG AYHUDJH NumbHU RI VKDUHV
Daic
No of SIarcs
Ouisianding
Days
Proporiionaic cRQVLGHUHG IRU BDVLc EPS DQG DLOutHG EPS
nunlcr of WcigIicd
sIarcs avcragc
ouisianding nunlcr of
1-Apr-05 17,748,086 4 194,500 sIarcs
5-Apr-05 17,748,679 38 1,847,808 Considcrcd for Dasic EPS (4i

20,022,903
13-May-05 17,749,016 7 340,392 Add. Equivalcni nunlcr of diluicd sIarcs
20-May-05 17,749,027 7 340,392 dccncd io Iavc lccn issucd on alloincni
27-May-05 17,749,183 4 194,512 of Warranis on.
31-May-05 17,749,243 1 48,628 Daic Nunlcr Days
1-Jun-05 17,750,069 1 48,630 20-Oci-06 1,327,562 101

367,353
2-Jun-05 17,750,149 7 340,414 23-Oci-06 442,520 98

118,814
9-Jun-05 17,750,434 12 583,576 1,770,082

486,167
21-Jun-05 17,750,532 23 1,118,527 Considcrcd for Diluicd EPS (5i

20,509,070
14-Jul-05 17,750,582 4 194,527
18-Jul-05 17,751,282 14 680,871
1-Aug-05 17,751,294 3 145,901
4-Aug-05 17,751,308 9 437,703
13-Aug-05 17,751,319 16 778,140
29-Aug-05 17,751,332 10 486,338
8-Scp-05 17,751,357 46 2,237,157
24-Oci-05 17,751,370 24 1,167,213
17-Nov-05 17,751,378 53 2,577,597
9-Jan-06 17,751,398 77 3,744,816
27-Mar-06 17,751,432 5 243,170
WcigIicd avcragc nunlcr 17,750,812





SCHEDULE 1? - NOTES ON ACCOUNTS
1| Significani Accouniing Policics.

(ii Ficd Asscis

Ficd asscis rcvalucd (lasis indicaicd in Noic 11.2 lclowi arc siaicd ai rcvalucd anounis lcss
dcprcciaiion. OiIcr ficd asscis arc siaicd ai cosi of acquisiiion (nci of CENVAT crcdiii or consiruciion
lcss dcprcciaiion.

Cosi of sofiwarc arc capiialiscd in iIc pcriod in wIicI iIc sofiwarc is inplcncnicd for usc, wIcrc ii is
cpccicd io providc fuiurc cnduring ccononic lcncfii. Capiialisaiion cosis includcs liccnsc fccs and cosi of
inplcncniaiion 1 sysicn inicgraiion scrviccs. Inpairncni loss is rccogniscd wIcrcvcr iIc carrying
anouni of ficd asscis of a casI gcncraiing unii ccccds iis rccovcrallc anouni i.c. nci sclling pricc or
valuc in usc, wIicIcvcr is IigIcr.

(iii Dorrowing Cosis

Dorrowing cosis aiiriluiallc io acquisiiion or consiruciion of qualifying asscis (asscis wIicI rcquirc
sulsianiial pcriod of iinc io gci rcady for iis inicndcd usci arc capiialiscd as pari of iIc cosi of sucI
asscis. All oiIcr lorrowing cosis arc cIargcd io rcvcnuc.
(iiii Covcrnncni Cranis

Cranis of Capiial naiurc (noi rclaicd io spccific ficd asscis i arc crcdiicd io Capiial Fcscrvc . Cranis
rclaicd io rcvcnuc arc crcdiicd io rclaicd cpcnsc accouni .
(ivi Dcprcciaiion
Dcprcciaiion on iIc incrcncnial anouni addcd on rcvaluaiion in rcspcci of rcvalucd iicn is calculaicd on
siraigIi linc nciIod ai raics considcrcd applicallc ly valucrs. SucI addiiional dcprcciaiion is adjusicd
againsi iIc availallc lalancc in Fcvaluaiion Fcscrvc in rcspcci of rclaicd iicns.
Sofiwarc capiialiscd arc anoriiscd ovcr a pcriod of iIrcc ycars fron iIc daic of capiialisaiion.

Dcprcciaiion on original cosi of ficd asscis is providcd ciiIcr on siraigIi linc lasis or on wriiicn down
valuc nciIod ai raics spccificd in ScIcdulc XIV io iIc Conpanics Aci, 1956 of India.
(vi Forcign Currcncy Transaciions

Monciary asscis and lialiliiics rclaicd io forcign currcncy iransaciion rcnaining unsciilcd ai iIc cnd of
iIc pcriod arc iranslaicd ai pcriod cnd raics. TIc diffcrcncc in iranslaiion of nonciary asscis and
lialiliiics and rcaliscd gains and losscs on forcign ccIangc iransaciion oiIcr iIan iIosc rclaiing io ficd
asscis acquircd fron ouisidc India arc rccogniscd in iIc Profii and Loss Accouni.

In rcspcci of iransaciion covcrcd ly forward ccIangc coniracis, prcniun or discouni arising ai iIc
inccpiion of iIc coniraci (lcing iIc diffcrcncc lciwccn iIc coniraci raic and iIc ccIangc raic on iIc daic
of inccpiion of iIc coniracii is cIargcd io iIc Profii and Loss Accouni ovcr iIc pcriod of iIc coniraci,
cccpi in casc of lialiliiics incurrcd for acquiring ficd asscis fron ouisidc India. EcIangc diffcrcnccs
(including arising oui of forward ccIangc coniracisi in rcspcci of lialiliiics incurrcd io acquirc ficd
asscis fron ouisidc India arc adjusicd io iIc carrying anouni of sucI ficd asscis.

EcIangc diffcrcncc on iIc forward ccIangc coniraci arising on iIc lalancc sIcci daic or sciilcncni daic
wIicIcvcr is carlicr is accounicd for in iIc rcporiing pcriod.
(vii Invcsincnis

Invcsincnis arc valucd ai cosi lcss provision for dininuiion (oiIcr iIan icnporaryi in iIc valuc iIcrcof as
dcicrnincd ly iIc Doard of Dircciors lascd on pcriodical rcvicw.
(viii Invcniorics
Invcniorics arc valucd ai lowcr of cosi and nci rcalisallc valuc.
Siorcs, Sparcs arc valucd ai cosi dcicrnincd on wcigIicd avcragc lasis.
Faw naicrials arc valucd ai cosi dcicrnincd on Firsi In Firsi Oui lasis.

For iIc purposc of valuaiion of finisIcd goods,cosi includcs naicrial cosi (dcicrnincd on iIc lasis
indicaicd alovci, appropriaic sIarc of ovcrIcads and ccisc duiy payallc on sulscqucni clcarancc fron
iIc faciory.
(viiii Fccogniiion of Inconc and Epcndiiurc

(ai Salc of carlon llacl is rccogniscd on iIc lasis of dcspaicI1sIipncni of goods io cusioncrs and iIc
salc of powcr is rccogniscd lascd on powcr off-ialc ly iIc cusioncr.

(li Iicns of inconc and cpcndiiurc arc rccogniscd on accrual (cccpi wIcrc iIcrc arc significani
unccriainiicsi and prudcni lasis.
(ii Tcrninaiion

(ai Lialiliiy on accouni of graiuiiy providcd on iIc lasis of aciuarial valuaiion is fundcd wiiI an approvcd
fund.
(li Payncnis undcr Voluniary Fciircncnis ScIcncs arc anoriiscd ovcr iIc pcriod lcing lowcr of .
( i i iIc rcnaining pcriod of scrvicc of iIc rclaicd cnployccs ,
( ii i fivc ycars (for payncnis nadc upio 31si MarcI, 2006 i,
( iii i ycar cnding 31si MarcI, 2010 (in casc of payncnis nadc fron 1si April, 2006 i,



SCHEDULE 1? - NOTES ON ACCOUNTS (contd.)
(i Lcavc EncasIncni Dcncfiis

Accrucd lialiliiy iowards lcavc cncasIncni lcncfiis payallc io cnployccs cvaluaicd on iIc lasis of
aciuarial valuaiion is rccogniscd as rcvcnuc cIargc.
(ii FcscarcI and Dcvclopncni

Fcvcnuc cpcndiiurc on rcscarcI and dcvclopncni is cIargcd againsi iIc profii for iIc pcriod in wIicI ii
is incurrcd.
(iii Tacs on Inconc

Currcni ia is dcicrnincd as iIc anouni of ia payallc in rcspcci of iaallc inconc for iIc pcriod lascd
on applicallc ia raic and laws. Dcfcrrcd ia is rccogniscd, suljcci io considcraiion of prudcncc in rcspcci
of dcfcrrcd ia assci, on iining diffcrcnccs, lcing iIc diffcrcncc lciwccn iaallc inconc and accouniing
inconc iIai originaics in onc pcriod and arc capallc of rcvcrsal in onc or norc sulscqucni pcriods and is
ncasurcd using ia raic and laws iIai Iavc lccn cnacicd or sulsianiivcly cnacicd ly iIc Dalancc SIcci
daic. Dcfcrrcd ia asscis arc pcriodically rcvicwcd io rcasscss rcalisaiion iIcrcof.

2|

Pursuani io iIc approval of iIc ncnlcrs of iIc Conpany in accordancc wiiI SEDI guidclincs 30,00,000
Convcriillc Warranis of Fs 149 cacI wiiI an opiion io sulscrilc io onc Equiiy SIarc of Fs 10 cacI fully
paid up, wiiIin 18 noniIs of iIc daic of alloincni Iavc lccn alloiicd on 15iI MarcI, 2007 on prcfcrcniial
lasis upon upfroni payncni of 10% of iIc ioial sulscripiion noncy.
3.1| Managcrial Fcnuncraiion .
YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200? 31si MarcI, 2006
RupHHV LQ LDkKV Fupccs in LalIs
Anounis paid1 payallc io .

ai Managing Dirccior
Salarics , Donus and Allowanccs 53.65 37.17
Coniriluiion io Providcni, Craiuiiy
and Supcrannuaiion Funds

5.97 5.01
Pcrquisiics 5.41 7.81
6S.03 49.99
li OiIcr Dircciors
Dircciors' Fccs 4.6S 4.65

3.2|

Conpuiaiion of Nci Profii undcr Scciion 198(1i1349 of iIc Conpanics Aci, 1956 Ias noi lccn providcd in
vicw of waivcr of connission ly iIc conccrncd Dircciors.

4| Ycar Endcd Ycar Endcd
31si MarcI, 2007 31si MarcI, 2006
Fupccs in LalIs Fupccs in LalIs
Audiiors' Fcnuncraiion.
Audii Fccs 12.00 12.00
Ta Audii 3.S0 2.50
OiIcrs Ccriificaiions S.SS 4.90
Fcinlurscncni of Epcnscs (including Scrvicc Ta 0.?6 0.31
io iIc cicni rouicd iIrougI Profii and Loss Accounii

Includcs Fs 0.50 lalI for Prcvious Ycar

5| Toial Anouni of Consunpiion of Faw Maicrials, Siorcs and Sparcs.


Ycar cndcd 31si MarcI,
2007

Ycar cndcd 31si MarcI,
2006
% Valuc % Valuc
Fupccs in LalIs
Fupccs in
LalIs
Inporicd 86 60616.21 86 45,960.49
Indigcnous 14 9,830.22 14 7,305.44
Toial 100 70,446.43 100 53,265.93

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SCHEDULE 1? - NOTES ON ACCOUNTS (contd.)

YHDU HQGHG 31Vt MDUcK,
200?
YHDU HQGHG 31Vt MDUcK,
2006
QuDQtLty RupHHV LQ Ouaniiiy Fupccs in
7| Faw Maicrials consuncd MT LDkKV MT LalIs
(all indigcnous-unlcss ncniioncd
oiIcrwisci for Manufaciuring
Carlon Dlacl .
(ii L.D.O.

361

11S.??

367

106.49
(iii Indigcnous Carlon Dlacl
Fccd siocl

31,S01

4,969.36

31,666

4,313.72
(iiii Inporicd Carlon Dlacl
Fccd Siocl

406,S03

60,S31.26

371,179

45,919.71
(ivi Tar Oil

10,323

1,6SS.3S

3,221

365.50
(vi OiIcrs

24

10.09

30

11.22


449,012

6?,2S4.S3

406,463

50,716.64
Lcss. Consunpiion iIrougI FcscarcI
and Dcvolopncni runs.
Inporicd Carlon Dlacl
Fccd Siocl

163

22.S3

72 9.59



44S,S49

6?,262.00

406,391

50,707.05


Ycar cndcd Ycar cndcd
31si MarcI, 2007 31si MarcI, 2006
Fupccs in LalIs Fupccs in LalIs
8| CIF Valuc of Inporis -
(ai Faw Maicrials 57,474.74 38,766.03
(li Siorcs and Sparcs 83.30 127.49
(ci Capiial Equipncni - 16.11


9| Epcndiiurc in Forcign Currcncy
cIargcd io iIc Profii and Loss Accouni
on accouni of.
(ai Connission on Epori Salcs

220.42 168.57
(li Inicrcsi

1,642.6S 1,538.53
(ci OiIcrs

11S.26 392.89


10| Advanccs of Fs.586.37 lalIs (Prcvious ycar - Fs. 1,025.95 lalIsi includcs Fs.1.24 lalIs (Prcvious ycar - Fs. 1.41
lalIsi duc ly an Officcr of iIc Conpany, nainun anouni duc ai any iinc during iIc ycar - Fs.1.41 lalIs (Prcvious
ycar - Fs.1.47 lalIsi.





SCHEDULE 1? - NOTES ON ACCOUNTS (contd.)

11.1|
For iIc purposc of iIcsc accounis, following nciIods and
raics
of dcprcciaiion Iavc lccn uscd for dcprcciaiing iIc original cosi of ficd asscis .


(ai Ccriain iicns of Plani and MacIincry lcing cncrgy saving
dcviccs
Undcr siraigIi
linc

addcd during iIc pcriod cndcd 31si
MarcI,1987 .
nciIod ai
raics
spccificd in ScIcdulc
XIV of iIc Conpanics
Aci,1956.

(li OiIcr asscis addcd upio 31si MarcI,1987 .
Undcr wriiicn
down
valuc nciIod ai raics
spccificd in ScIcdulc
XIV of iIc Conpanics
Aci,1956.

(ci Addiiions sincc 1si April, 1987 .
Undcr siraigIi
linc

nciIod ai
raics
spccificd in ScIcdulc XIV
of iIc Conpanics Aci,1956.

11.2|
Dascd on iIc valuaiion rcporis sulniiicd ly iIc valucrs appoinicd for iIc purposc, ccriain iicns of iIc
Conpany's

ficd asscis viz., Land (FrccIold1LcascIoldi, Acquisiiion and Dcvclopncni Epcnscs, Duildings on sucI
Land, Flais, Elccirical Insiallaiions, Plani and MacIincry and Failway Siding| wcrc rcvalucd on 30iI
Novcnlcr,1984, on30iI Scpicnlcr,1991 and also on 30iI Scpicnlcr, 2001 (cccpi for Failway Sidingi aficr
considcring iIc following faciors.

- csiinaicd currcni narlci valuc pcriaining io Land (FrccIold1LcascIoldi, Acquisiiion and Dcvclopncni
Epcnscs, Duildings on sucI Land and Flais

- valucs of Elccirical Insiallaiions, Plani and MacIincry and Failway Siding (wIcn applicallci lascd on
iIcir currcni cosi of rcplaccncni
- adjusincnis for iIc condiiion, iIc siandard of nainicnancc, dcprcciaiion upio valuaiion daics, cic.


TIc rcsuliani rcvaluaiion surplus of Fs.1,011.07 lalIs, Fs.2,994.04 lalIs and Fs. 5,995.27 lalIs arising
fron iIc aforcsaid rcvaluaiions wcrc iransfcrrcd io Fcvaluaiion Fcscrvc in iIc Conpany's annual accounis
for iIc ycars1983-84, 1990-91 and 2000-01 rcspcciivcly.



11.3| Dcprcciaiion for iIc ycar cndcd 31si MarcI, 2007 on iicns of ficd asscis rcvalucd includc an
addiiional cIargc of Fs. 301.88 lalIs (Prcvious ycar - Fs. 305.28 lalIsi ovcr iIai calculaicd on
original cosi ai raics prcscrilcd undcr ScIcdulc XIV of iIc Conpanics Aci,1956 as ancndcd during
1993-94 rcprcscniing dcprcciaiion on iIc incrcncnial anounis addcd on rcvaluaiion calculaicd ai iIc

raics considcrcd applicallc ly iIc
valucrs.


11.4|
Capiial Epcndiiurc in Progrcss
includcs.
(ai Capiial Advanccs unsccurcd, considcrcd good - Fs. 1,363.95 lalIs (31si MarcI,2006 Fs.8.48 lalIsi
(li Dorowing cosi Fs. 342.83 lalIs ( 31si MarcI, 2006 - Nil i





SCHEDULE 1? - NOTES ON ACCOUNTS (contd.)
12| Dciails of Dcfcrrcd Ta assci1lialiliiy considcrcd in iIcsc accounis .-
AV Dt As ai
31Vt MDUcK,200? 31si MarcI,2006
RupHHV LQ LDkKV Fupccs in LalIs
Dcfcrrcd Ta Lialiliiy on accouni of -
-Dcprcciaiion 4,S23.0S 4,986.13
-OiIcrs 0.?3 -

4,S23.S1 4,986.13
Dcfcrrcd Ta Assci on accouni of -
- Unalsorlcd Dcprcciaiion - 1,913.86

- Iicns allowallc for ia purposc on
payncni 43.22 44.57

- OiIcrs 443.94 192.87
4S?.16 2,151.30
Dcfcrrcd Ta Lialiliiy (ncii 4,336.6S 2,834.83

13| According io iIc lciicrs of undcrialing givcn ly iIc Conpany io iIc conccrncd Financial Insiiiuiions, iis

invcsincnis in cquiiy sIarcs of Maplc Circuiis Liniicd and Norplc Oal India Liniicd cannoi lc plcdgcd,
cIargcd or oiIcrwisc cncunlcrcd or disposcd off wiiIoui iIcir prior conscni, during iIc currcncy of iIc
loan faciliiics granicd ly iIc Financial Insiiiuiions io iIc said conpanics.



31Vt
MDUcK,200?
31si
MarcI,2006

RupHHV LQ
LDkKV
Fupccs in
LalIs
14| Coniingcni Lialiliiics for .

(14.1i Ouisianding Danl
Cuaraniccs cic.

24S.20

264.20

(14.2i Dills
discounicd

1,S13.?S

235.73

(14.3i Cuaraniccs or Counicr Cuaraniccs or Counicr Indcnniiy
givcn ly iIc Conpany .

(ai on lcIalf of lodics corporaic and oiIcrs (oiIcr iIan
guaraniccs wIicI

according io lcgal opinion arc no longcr cnforccallc againsi
iIc Conpanyi -
- Linii

9.00

1,779.00
- Ouisianding

9.00

1,721.23

(li for rcpayncni of Housing Loan granicd ly Housing
Dcvclopncni
Financc Corporaiion Lid. io cnployccs of iIc Conpany.

12.16

17.45
(14.4i Clains againsi iIc Conpany noi aclnowlcdgcd as dclis .

(ai Inconc-ia naiicrs pcnding (oiIcr iIan naiicrs sci asidc
for rcasscssncnii

29S.09

155.12
(li Salcs Ta naiicrs
194.66

194.66

15|

Prcniun on forcign ccIangc arising fron forward ccIangc coniraci io lc rccogniscd in iIc accounis of
fuiurc pcriods Fs. 19.07 lalIs (Prcvious Ycar 0.72 LalIi

16| Earnings in Forcign EcIangc on Accouni of - YHDU EQGHG Ycar Endcd
31Vt MDUcK, 200? 31si MarcI, 2006
RupHHV LQ LDkKV Fupccs in LalIs

Epori Salcs (F.O.D. Valuci 22,24S.?S 12,961.10
Carlon Crcdii 2??.66 -





SCHEDULE 1? - NOTES ON ACCOUNTS (contd.)
17|


Capiial Conniincnis (nci of advanccs Fs. 1,363.95 lalIs , 31.03.2006 - Fs. 8.48 lalIs i noi
providcd for as ai 31si MarcI, 2007 arc csiinaicd ai Fs. 6,550 lalIs (31.03.2006 - Fs. 36.76
lalIs i

18| SHJmHQt IQIRUmDtLRQ
(ai
Infornaiion rclaiing io iIc iwo lusincss scgncnis, lcing carlon llacl and powcr Ias lccn
discloscd as prinary scgncnis


(li
Inicr-scgncni iransfcrs lcing powcr consuncd for nanufaciurc of carlon llacl arc lascd on pricc
cIargcd io
iIc cicrnal cusioncr.

(ci
Scgncni Fcvcnucs, Fcsulis
and OiIcr Infornaiion.
BuVLQHVV SHJmHQt Fupccs in LalIs


YHDU HQGHG 31.03.200? Ycar Endcd 31.03.2006



CDUbRQ
BODck Powcr Toial
Carlon
Dlacl Powcr Toial
(L) SHJmHQt RHYHQuH
Eicrnal Salcs

111,2?6.2
4
1,0S4.6
2 112,330.S6

81,725.09 825.83

82,550.92
Inicr-scgncni Salcs - 46S.14 46S.14

- 362.10

362.10


111,2?6.2
4
1,S22.?
6 112,?99.00

81,725.09 1,187.93

82,913.02
(LL) SHJmHQt RHVuOtV

Profii lcforc inicrcsi and
ia 9,422.2?
1,19S.S
3 10,61S.10

2,411.71 885.84

3,297.55

Unallocaicd (cpcnscsi1
inconc (ncii (2,903.19) (2,102.19i
Inicrcsi (3,260.2?) (3,064.97i
Profii lcforc ia 4,4S4.64 (1,869.61i
(LLL) SHJmHQt AVVHtV

63,003.S?
3,?S0.2
6 66,?S3.S3

61,094.55 3,997.67

65,092.22
Unallocaicd ?,19?.?2

5,174.56
?3,9S1.SS

70,266.78
(LY) SHJmHQt LLDbLOLtLHV

49,S2S.91
1,49S.2
1 S1,32?.12

54,201.06 3,647.13

57,848.19
Unallocaicd 6,0?4.00

2,998.07
S?,401.12

60,846.26
(Y) CDpLtDO ExpHQGLtuUH 303.61 0.3S 303.96

454.26 17.86

472.12
(YL) DHpUHcLDtLRQ 1,S3?.06 199.42 2,036.4S

1,849.22 198.79

2,048.01
(YLL)
NRQ CDVK ExpHQVH RtKHU
tKDQ DHpUHcLDtLRQ
(uQDOORcDtHG) 6S.14 62.39
GHRJUDpKLcDO SHJmHQt


YHDU HQGHG 31.03.200? Ycar Endcd 31.03.2006



WLtKLQ
IQGLD
OutVLGH
IQGLD TRtDO WiiIin India
Ouisidc
India Toial
(L) SHJmHQt RHYHQuH

90,0S2.11
22,24S.?
S
112,330.S
6 69,589.82 12,961.10

82,550.9
2
(LL) CDpLtDO ExpHQGLtuUH

303.96 - 303.96

472.12 -

472.12
(LLL) SHJmHQt AVVHtV

?0,33S.16
?0,3SS.1
6 ?3,9S1.SS

68,234.35 2,032.43

70,266.7
8




SCHEDULE 1? - NOTES ON ACCOUNTS (contd.)
19|
Procccds rcccivcd upon prcfcrcniial issuc of Equiiy SIarcs and Convcriillc Warranis aggrcgaiing Fs. 5,397
lalIs Iavc lccn uiilliscd during iIc ycar on an ovcrall lasis as sci oui lclow.
RV. IQ ODkKV
Capiial Epcndiiurc 808.18
Worling Capiial Fcquircncni 4,588.82
S,39?.00

20| Fclaicd Pariy Disclosurcs .

Nanc of iIc iransaciing rclaicd pariics, naiurc of rclaiionsIip, iransaciions and ousianding iicns.
Kcy nanagcncni pcrson-
(ai Mr SudIir SaIgal, Managing Dirccior iill 30iI Novcnlcr, 2006

(li Mr AsIol Coyal, Dirccior in wIolc iinc cnployncni fron 23rd Ociolcr, 2006 and Managing Dirccior,
fron 1si Dcccnlcr, 2006

Fclaiivc of lcy nanagcncni pcrson, rcfcrrcd io in (ai alovc- Mrs. Aruna SaIgal

Transaciions wiiI Kcy nanagcncni pcrson rcfcrrcd io in (ai alovc and Iis rclaiivc.


Fcnuncraiion paid1 payallc for iIc ycar cndcd 31si MarcI, 2007 Fs. 34.50 lalIs (Prcvious ycar- Fs.
49.99 lalIsi and anouni duc (rclaiing io payncnis lcforc dircciorsIipi as on 31si MarcI, 2007 Fs. 11.44
lalIs (Prcvious ycar - Fs. 11.44 lalIsi rcspcciivcly. Inicrcsi on Ficd Dcposiis wiiI iIc Conpany as pcr
Conpany's scIcnc paid1 payallc io iIc lcy nanagcncni pcrson for iIc ycar cndcd 31si MarcI, 2007 and
Ficd Dcposii lalancc wiiI iIc Conpany as on 31si MarcI, 2007 arc Fs. 0.41 lalI(Prcvious ycar-Fs. 1.32
lalIsi and Nil (Prcvious ycar -Fs. 5.00 lalIsi rcspcciivcly. Inicrcsi on Ficd Dcposiis wiiI iIc Conpany as
pcr Conpany's scIcnc paid1 payallc io rclaiivc for iIc ycar cndcd 31si MarcI, 2007 and Ficd Dcposiis
lalancc wiiI iIc Conpany as on 31si MarcI, 2007 arc Fs. 0.13 lalI (Prcvious ycar -Fs. 2.14 lalIsi and
Nil (Prcvious ycar -Fs. 5.00 lalIsi. Fcni paid 1 payallc io iIc rclaiivc for iIc ycar cndcd 31si MarcI, 2007
Fs. 3.20 lalIs (Prcvious ycar -Fs. 4.80 lalIsi.


Transaciions wiiI Kcy nanagcncni pcrson rcfcrrcd io in (li alovc.
Fcnuncraiion paid1 payallc for iIc ycar cndcd 31si MarcI, 2007 Fs. 30.53 lalIs (Prcvious ycar- Nili

21|


Pcnding conplciion of iIc rclcvani fornaliiics of iransfcr of ccriain asscis acquircd pursuani io iIc
ScIcnc of Analganaiion of Transnission Holdings Liniicd wiiI iIc Conpany in 2001-2002, sucI asscis
rcnain includcd in iIc lools of iIc Conpany undcr iIc nanc of iIc iransfcror conpany.

22| Epcnscs arc aficr adjusincni of anounis rcinlurscd io or ly iIc Conpany.

23|

Inicrcsi cpcndiiurc is nci of Fs. 203.27 lalIs (Prcvious ycar-Fs. 215.62 lalIsi lcing inicrcsi carncd on
Margin Moncy Dcposiis and includc inicrcsi on.
(ai Dclcniurc Fs. 150.79 lalIs (Prcvious ycar-Fs. 204.40 lalIsi
(li Ficd Loans Fs. 1,489.29 lalIs ( Prcvious ycar - Fs. 906.86 lalIsi

24|

Fcni of Fs. 62.20 LalIs ( Prcvious ycar Fs. 62.90 lalIs i rclaics io canccllallc opcraiing lcascs ialcn on
or aficr 1.04.2001. TIcsc lcasc arrangcncnis rangc fron 11 noniIs io 3 ycars and arc prinarily in rcspcci
of acconnodaiion for cnployccs, officcs, warcIouscs cic. and inicr alia includc cscalaiion clausc and
opiion for rcncwal.

25| Prcvious ycar's figurcs Iavc lccn rcgroupcd or rcarrangcd wIcrc considcrcd ncccssary.







CDVK FORZ StDtHmHQt IRU yHDU HQGHG 31Vt MDUcK, 200?

YHDU EQGHG 31Vt MDUcK, 200?
RupHHV LQ ODkKV
Ycar Endcd31si MarcI, 2006
Fupccs in lalIs
A. CDVK FORZ FURm OpHUDtLQJ ActLYLtLHV
Nci Profii 1 (Lossi lcforc iaaiion 4,4S4.64 (1,869.61i
Adjusincnis for.
Dcprcciaiion 2,036.4S 2,048.01
Loss on salc of ficd asscis (ncii 4?.10 18.10

Unrcaliscd (gaini 1 loss (ncii on forcign
ccIangc fluciuaiion

(4S3.6S) 52.31
Inconc fron Dividcnd

(2.S?)

(0.11i

Inicrcsi (Fcccivcd1Fcccivallc on Inicr
Corporaic Dcposiis cic.i

(62.01)

(53.60i
Profii (ncii on salc of Invcsincni

(1.33) -
Inicrcsi (Paid1Payallc on loans cici 3,260.2? 3,064.97
Provision for Douliful Dclis 624.?0 180.00

Provision for dininuiion in valuc of
invcsincnis 101.01 16.00

Anoriisaiion of payncnis undcr Voluniary
Fciircncni ScIcncs 6S.14 62.39
S,61?.S1 5,388.07

OpHUDtLQJ PURILt bHIRUH WRUkLQJ CDpLtDO
CKDQJHV 10,0?2.4S 3,518.46

Adjusincnis for.
Invcniorics

(2,3?6.6?) 1,244.91
Tradc and OiIcr Fcccivallcs

(1,1S4.S?)

(5,728.17i
Tradc Payallcs S,SSS.63 5,235.35
2,0S?.39 752.09
CDVK GHQHUDtHG IURm OpHUDtLRQV 12,129.S4 4,270.55

Dircci Tacs Paid (including Ta Dcducicd ai
Sourcci

(606.?3) (149.12i
Payncnis undcr Voluniary Fciircncni ScIcnc

(42.00) (47.93i
NHt CDVK IURm OpHUDtLQJ ActLYLtLHV 11,4S1.11 4,073.50

B. CDVK FORZ IURm IQYHVtLQJ ActLYLtLHV

Payncnis for ficd asscis

(2,046.?1)

(497.50i
Salc procccds of ficd asscis SS.S2 28.90
PurcIasc of Invcsincni

(1,6S0.29)

(886.57i
Salc of Invcsincni 1,6S1.62 -
Dividcnd rcccivcd fron Invcsincnis 2.S? 0.11
Inicr Corporaic Dcposiis givcn

(1,000.00) -
Inicr Corporaic Dcposiis rcaliscd 1,00S.?S 600.00
Inicrcsi Fcccivcd OiIcrs 22.S9 3.72

Inicrcsi rcccivcd on Inicr Corporaic Dcposiis
cic. 6.?9 11.14
NHt CDVK uVHG LQ IQYHVtLQJ ActLYLtLHV

(1,94S.S6) (740.20i



C. CDVK FORZ IURm FLQDQcLQJ ActLYLtLHV
Alloincni noncy (including prcniuni rcccivcd S,39?.61 2.67
Procccds fron long icrn lorrowings 10,4S1.S0 359.45
Procccds fron sIori icrn lorrowings 21,060.90 25,107.40
Fcdcnpiion of Dclcniurcs

(1,000.00)

(500.00i
Fcpayncni of long icrn lorrowings

(2,9S3.S4)

(953.48i
Fcpayncni of sIori icrn lorrowings

(31,?SS.S3)

(25,274.38i

Incrcasc 1 (Dccrcasci in casI crcdii faciliiics,
icnporary ovcrdrafi cic. fron lanls

(6,32S.99) 1,770.97


Wcsi Dcngal Capiial Invcsincni Sulsidy
rcccivcd - 125.48
Dividcnds paid (including ia on dividcndi

(3.S0)

(303.27i
Inicrcsi paid (ncii

(3,26S.96)

(3,061.76i
NHt CDVK uVHG LQ FLQDQcLQJ ActLYLtLHV

(S,430.S1) (2,726.92i

NRtHV tR tKH CDVK FORZ StDtHmHQt IRU tKH yHDU HQGHG 31Vt MDUcK, 200?

1 TIc alovc CasI Flow Siaicncni Ias lccn prcparcd undcr iIc Indircci MciIod as sci oui in iIc Accouniing Siandard - 3 on
CasI Flow Siaicncni issucd ly iIc Insiiiuic of CIaricrcd Accounianis of India.

2 CasI and CasI Equivalcnis includc . AV Dt 31.03.200?
As ai
31.03.2006

CasI in Hand (including cIcqucs in Iand 2.42 21.37
Fs. 17.85 lalIs as ai 31.03.2006 i
Fcniiianccs in Transii 909.16 606.89
WiiI ScIcdulcd Danls.
-On Currcni Accounis 2S9.23 291.49
-On Unpaid and Unclaincd Dividcnd Accounis 30.S? 34.37
(as pcr conira - ScIcdulc 11i
-On SIori Tcrn Dcposiis

- 44.51
-On Margin Moncy Accouni againsi 3,01S.03 2,115.74
Lciicr of Crcdii1Cuaranicc
4,216.41 3,114.37
Noi availallc for inncdiaic1rcady usc ly iIc Conpany.

3 Prcvious ycar's figurcs Iavc lccn rcgroupcd or rcarrangcd, wIcrc considcrcd ncccssary.

TIis is iIc CasI Flow Siaicncni rcfcrrcd io in our rcpori of cvcn daic.

P. Law
Parincr
(McnlcrsIip No. 51790i
For and on lcIalf of
PFICE WATEFHOUSE,
CIaricrcd Accounianis.
Kollaia
26
iI
Junc, 2007

KausIil MulIcrjcc
Conpany Sccrciary



AsIol Coyal
Managing Dirccior

K. S. D. Sanyal
O. P. MalIoira
Dircciors


LIMITED REVIEW REPORT


TIc Doard of Dircciors
PIillips Carlon Dlacl Liniicd
31, Nciaji SulIas Foad,
Kollaia 700 001


1. Wc Iavc rcvicwcd iIc acconpanying siaicncni of Un-audiicd financial rcsulis for quaricr and
ninc noniIs cndcd 31" Dcccnlcr 2009 (iIc 'Siaicncni'i of PIillips Carlon Dlacl Liniicd
prcparcd ly iIc Conpany pursuani io Clausc 41 of iIc Lisiing Agrccncni wiiI iIc Siocl
EcIangcs in India, wIicI Ias lccn iniiialcd ly us for idcniificaiion purposcs. TIis Siaicncni
is iIc rcsponsililiiy of iIc Conpany's nanagcncni and Ias lccn approvcd ly iIc Doard of
Dircciors. Our rcsponsililiiy is io issuc a rcpori on iIc Siaicncni lascd on our rcvicw.

2. Wc conducicd our rcvicw in accordancc wiiI iIc Siandard on Fcvicw Engagcncni (SFEi 2400,
Engagcncnis io Fcvicw Financial Siaicncnis" issucd ly iIc Insiiiuic of CIaricrcd Accounianis
of India. TIis Siandard rcquircs iIai wc plan and pcrforn iIc rcvicw io oliain nodcraic
assurancc as io wIciIcr iIc financial siaicncnis arc frcc of naicrial nissiaicncni.

3. A rcvicw is liniicd prinarily io inquirics of conpany pcrsonncl and analyiical proccdurcs
applicd io financial daic and iIus providcd lcss assurancc iIan an audii. Wc Iavc noi
pcrforncd an audii and, accordingly, wc do noi cprcss an audii opinion.


4. Dascd on our rcvicw conducicd as alovc, noiIing Ias conc io our aiicniion iIai causcs us io
lclicvc iIai iIc Siaicncni prcparcd, fairly in all naicrial rcspccis, in accordancc wiiI iIc
Accouniing Siandards noiificd pursuani io iIc Conpanics (Accouniing SiandardsiFulcs, 2006
as pcr Scciion 211(3Ci of iIc Conpanics Aci, 1956 and oiIcr rccognizcd accouniing praciiccs
and policics, Ias noi discloscd iIc infornaiion rcquircd io lc discloscd in icrns of Clausc 41 of
iIc Lisiing Agrccncni including iIc nanncr in wIicI ii is io lc discloscd, or iIai ii coniains
any naicrial nissiaicncni.

5. FuriIcr, wc also rcpori iIai wc Iavc iraccd iIc nunlcr of sIarcs as wcll as iIc pcrccniagc of
sIarcIolding in rcspcci of iIc aggrcgaic anouni of pullic sIarcIoldings, as wcll as iIai of iIc
pronoicrs and pronoicr group (loiI plcdgcd1cncunlcrcd and non-cncunlcrcdi, as discloscd
in aforcsaid Siaicncni, fron iIc rcprcscniaiions & oiIcr rccords and infornaiion &
cplanaiions givcn io us ly iIc Conpany's nanagcncni, and found iIc sanc io lc in
accordancc iIcrcwiiI.




(P Lawi
Parincr
McnlcrsIip nunlcr 51790
For and on lcIalf of Pricc WaicrIousc
CIaricrcd Accounianis
Placc . Kollaia
Daic . 21
si
January 2010


(Fs. In Crorcsi
PDUtLcuODUV
TKUHH MRQtKV TKUHH MRQtKV NLQH MRQtKV NLQH MRQtKV YHDU
EQGHG EQGHG EQGHG EQGHG EQGHG
12/31/2009 12/31/200S 12/31/2009 12/31/200S 31.03.2009
UQDuGLtHG UQDuGLtHG UQDuGLtHG UQDuGLtHG AuGLtHG
Salcs 375.97 293.64 947.47 977.16 1,200.33
Lcss . Ecisc Duiy 29.21 31.31 77.37 103.73 124.31
1 (ai Nci Salcs1 Inconc
fron Opcraiions 346.76 262.33 870.10 873.43 1,076.02
(li OiIcr Opcraiing
Inconc 0.60 0.40 2.07 1.12 1.34
(c) TRtDO 34?.36 262.?3 S?2.1? S?4.SS 1,0??.36

2. Epcndiiurc .
(ai (Incrcasci1Dccrcasc in
Siocl in Tradc (8.04i 12.11 (7.79i (31.51i (10.01i
(li Consunpiion of Faw
Maicrial 257.36 256.72 617.86 740.05 939.99
(ci PurcIasc of Tradcd
goods - - - - -
(di Enployccs Cosi 9.38 7.97 26.32 26.43 34.54
(ci EcIangc Fluciuaiion
(Caini1 Loss (3.83i 4.34 (8.22i 33.86 46.58
(fi Dcprcciaiion 8.30 4.87 21.55 14.87 19.64
(gi OiIcr Epcndiiurc 40.70 27.96 109.13 95.98 129.54
(K) TRtDO 303.S? 313.9S ?SS.SS S?9.6S 1,160.2S
3. PURILt/ (LRVV) IURm
OpHUDtLRQV bHIRUH OtKHU
IQcRmH IQtHUHVt DQG
ExcHptLRQDO ItHmV (1-2) 43.49 (S1.2S) 113.32 (S.13) (S2.92)
4. OiIcr Inconc 0.03 0.94 0.26 13.97 13.10
S. PURILt/(LRVV) bHIRUH
IQtHUHVt DQG ExcHptLRQDO
ItHmV (3+4) 43.S2 (S0.31) 113.SS S.S4 (69.S2)
6. Inicrcsi (Ncii 7.68 9.21 19.78 21.34 27.48
?. PURILt/(LRVV) DItHU
IQtHUHVt but bHIRUH
ExcHptLRQDO ItHmV (S-6) 3S.S4 (S9.S2) 93.S0 (12.S0) (9?.30)
8. Eccpiional iicns - - - - -
9. PURILt/ (LRVV) IURm
OUGLQDUy ActLYLtLHV BHIRUH
TDx (?+S) 3S.S4 (S9.S2) 93.S0 (12.S0) (9?.30)
10. Ta Epcnsc 2.21 (13.54i 7.37 (4.78i (32.46i
11. NHt PURILt/(LRVV) IURm
OUGLQDUy ActLYLtLHV AItHU
TDx (9-10) 33.63 (4S.9S) S6.43 (?.?2) (64.S4)
12. Eiraordinary iicns (nci
of ia cpcnsci - - - - -
13. NHt PURILt/(LRVV) IRU
tKH pHULRG (11-12) 33.63 (4S.9S) S6.43 (?.?2) (64.S4)
14. Paid-up Equiiy SIarc
Capiial (Facc Valuc of Fs.
101- cacIi 28.25 28.25 28.25 28.25 28.25
15. Fcscrvcs ccluding
Fcvaluaiion Fcscrvc 189.93
16. Dasic EPS lcforc and
aficr Eiraordinary iicns
(Fsi 11.90 (16.27i 30.59 (2.92i (24.12i
Diluicd EPS lcforc and
aficr Eiraordinary iicns
(Fsi 11.90 (16.27i 30.59 (2.92i (24.12i


17. Pullic sIarcIolding .
- Nunlcr of sIarcs 13,030,475 13,084,264 13,030,475 13,084,264 13,030,375
- Pcrccniagc of
sIarcIolding 46.12 46.31 46.12 46.31 46.12
18. Pronoicrs and pronoicr
group SIarcIolding
a. Plcdgcd1Encunlcrcd
- Nunlcr of sIarcs - - - - -
- Pcrccniagc of sIarcs (as a
% of iIc ioial sIarcIolding
of pronoicr and pronoicr
groupi
- Pcrccniagc of sIarcs (as a
% of iIc ioial sIarc capiial
of iIc conpanyi
l. Non - cncunlcrcd
- Nunlcr of sIarcs 15,222,721 15,168,932 15,222,721 15,168,932 15,222,821
- Pcrccniagc of sIarcs (as a
% of iIc ioial sIarcIolding 100.00 100.00 100.00 100.00 100.00
- Pcrccniagc of sIarcs (as
a % of iIc ioial sIarc
capiial of iIc conpanyi 53.88 53.69 53.88 53.69 53.88
1. SHJmHQt RHYHQuH :
(ai Carlon Dlacl 333.03 258.80 830.73 910.57 1,060.51
(li Powcr 18.14 5.30 51.89 18.32 23.39
TRtDO 3S1.1? 264.10 SS2.62 S?9.S? 1,0S3.90
Lcss . Inicr Scgncni
Fcvcnuc 4.41 1.77 12.52 6.14 7.88
NHt SDOHV / IQcRmH IURm
OpHUDtLRQV 346.?6 262.33 S?0.10 S?3.43 1,0?6.02
2. SHJmHQt PURILt BHIRUH
IQtHUHVt DQG TDx :
(ai Carlon Dlacl 40.21 (54.08i 95.57 15.79 (53.29i
(li Powcr 12.62 4.55 38.53 15.93 20.21
TRtDO S2.S3 (49.S3) 134.10 31.?2 (33.0S)
Lcss .(ii Inicrcsi 7.68 9.21 19.78 21.34 27.48
(iii OiIcr Un-allocallc
Epcndiiurc nci off Un-
allocallc Inconc 9.31 0.78 20.52 22.88 36.74
TRtDO PURILt BHIRUH TDx 3S.S4 (S9.S2) 93.S0 (12.S0) (9?.30)
3. SHJmHQt CDpLtDO
EmpORyHG :
(ai Carlon Dlacl 488.05 334.52 488.05 334.52 183.54
(li Powcr 252.25 34.34 252.25 34.34 31.71
(ci Unallocaicd 178.75 548.77 178.75 548.77 429.48
TRtDO 919.0S 91?.63 919.0S 91?.63 644.?3

1 Conncrcial opcraiion of 16 MW cogcncraiion powcr plani ai Mundra conncnccd fron 24iI Dcccnlcr, 2009.
2
TIc Conpany did noi Iavc any invcsior conplaini pcnding as on 1si Ociolcr, 2009 and as on 31si Dcccnlcr,
2009. No conplainis wcrc rcccivcd during iIc quaricr cndcd 31si Dcccnlcr, 2009.
3 Prcvious pcriod's figurcs Iavc lccn rcgroupcd 1 rcarrangcd wIcrcvcr ncccssary.

TIc alovc rcsulis wcrc rcvicwcd ly iIc Audii Conniiicc and ialcn on rccord ly iIc Doard of Dircciors ai iIcir
ncciing Icld on iIc 21si January, 2010. TIc siaiuiory audiior of iIc Conpany Ias carricd oui a "Liniicd
Fcvicw" of iIc alovc un-audiicd financial rcsulis in icrns of Clausc 41 of iIc Lisiing Agrccncni.
By RUGHU RI tKH BRDUG
Kollaia AsIol Coyal
21
si
January 2010 MDQDJLQJ DLUHctRU


GENERAL INFORMATION

COMPANY SECRETARY

MR. KAUSHIK MUKHERJEE

31, N. S. Foad,
Kollaia-700 001
Tcl . (033i 2242 0839
Fa . (033i 2248 0140
E-nail . lausIiln.pclllid.con

BOOK RUNNING LEAD MANAGER

VC CORPORATE ADVISORS PVT. LTD.

SEDI FECN. NO. INM000011096
31, CancsI CIandra Avcnuc,
2
nd
Floor, Suiic No. 2C,
Kollaia-700 013
Tcl . (033i 2225 39401394114116
Fa.(033i 2225 3941
Wcl Siic. www.vccorporaic.con
E-nail. - nail.vccorporaic.con
Coniaci Pcrson. Mr. Anup Kunar SIarna

ADVISOR TO THE COMPANY

SMIFS CAPITAL MARKETS LIMITED
4, Lcc Foad, 4
iI
floor,
Kollaia 700 020
Tcl. +91-33-2290 7400101102
Fa. +91 2287 4042
Enail ID. snifscl.vsnl.nci

AUDITORS

PRICE WATERHOUSE
CIu)tc)cd Accountunts
Ploi no. Y- 14, EP Dlocl, Sali Lalc Elccironic Conplc,
DidIan Nagar, Kollaia 700 091
Tcl . (033i 2357 9260
Fa . (033i 2357 7496

LEGAL ADVISORS TO PHILLIPS CARBON BLACK LIMITED
ON INDIAN LAW
KHAITAN & CO.
Encrald Housc,
1D, Old Posi Officc
Sircci,
Kollaia-700 001
PI. 033 2248 7000
Fa. 033 2248 7656
Onc India Dulls Ccnirc
13
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Floor, 841, S. D. Marg,
ElpIinsionc Foad,
Munlai 400 013
PI. 022 6636 5000
Fa. 022 6636 5050