CONTENTS

1. Board of Directors 2

2. Mission 4

3. Overview 5

4. Directors' Report 6

5. Auditor's Report 14

6. Balance Sheet 18

7. Profit and Loss Account 19

8. Cash Flow Statement 20

9. Note No. 1 - Significant Accounting Policies 22

10. Notes Forming Part of the Financial Statements 26

11. Note No. 2.25 - Other Notes 35

12. Individual Success Stories 39

13. Awards and Accolades 44

th5 Annual Report 2011-12

3IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED2

BOARD OF DIRECTORSAs on 31st March, 2012

Dr. G.N. Saxena

Director

Rakesh Kapur Ranjan Sharma

Managing Director Director

A. Roy

Director

S.C. Mittal

Director

Manish Gupta

Director

Raghunath Mandava

Director

Nilanjan Roy

Director

th5 Annual Report 2011-12

Dr. U.S. Awasthi

Chairman

EXECUTIVES

th5 Annual Report 2011-12

S. Srinivasan

Chief Executive Officer

R. Anantharaman

Chief Operating Officer

Virendra Mediratta

Chief Operating Officer(KCC)

Umesh Wahi

V.P. (Finance)

T. Sudhakar

Head (IT & Business Development)

Dr. G.C. Shrotriya

Advisor (Content)

Ashok Bala

National Sales and Marketing Head

3IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED2

BOARD OF DIRECTORSAs on 31st March, 2012

Dr. G.N. Saxena

Director

Rakesh Kapur Ranjan Sharma

Managing Director Director

A. Roy

Director

S.C. Mittal

Director

Manish Gupta

Director

Raghunath Mandava

Director

Nilanjan Roy

Director

th5 Annual Report 2011-12

Dr. U.S. Awasthi

Chairman

EXECUTIVES

th5 Annual Report 2011-12

S. Srinivasan

Chief Executive Officer

R. Anantharaman

Chief Operating Officer

Virendra Mediratta

Chief Operating Officer(KCC)

Umesh Wahi

V.P. (Finance)

T. Sudhakar

Head (IT & Business Development)

Dr. G.C. Shrotriya

Advisor (Content)

Ashok Bala

National Sales and Marketing Head

5IFFCO KISAN SANCHAR LIMITED

MISSION OVERVIEW OFIKSL SERVICES

ARCHITECTURE &SERVICE CONSTRUCT

nFree services to every rural subscriber

lFive free voice messages on areas of interest

lHelpline services managed by experts

lPhone-in programmes

lMobile based quizzes

nFormation of Communities with common interest

lFocused information services on areas of common interest

lStrengthening NGOs, SHGs and other stake holders in rural India to provide more intensive information services to members in villages

IFFCO Database, Specialist’s Inputs,

Universities & Research Institutions

PUSHVoice Based

Information

PULLHelpline

To empower Indian farmers

lWith timely, relevant and high quality information and services by leveraging mobile telephony.

lTo improve informed decision making by farmers which could result in reduction in costs, improvement in quality, increase in income and enhanced opportunities for livelihood.

lTo work with like minded institutions for transformation of rural India.

th5 Annual Report 2011-12 th5 Annual Report 2011-12

IKSL's Experts

5IFFCO KISAN SANCHAR LIMITED

MISSION OVERVIEW OFIKSL SERVICES

ARCHITECTURE &SERVICE CONSTRUCT

nFree services to every rural subscriber

lFive free voice messages on areas of interest

lHelpline services managed by experts

lPhone-in programmes

lMobile based quizzes

nFormation of Communities with common interest

lFocused information services on areas of common interest

lStrengthening NGOs, SHGs and other stake holders in rural India to provide more intensive information services to members in villages

IFFCO Database, Specialist’s Inputs,

Universities & Research Institutions

PUSHVoice Based

Information

PULLHelpline

To empower Indian farmers

lWith timely, relevant and high quality information and services by leveraging mobile telephony.

lTo improve informed decision making by farmers which could result in reduction in costs, improvement in quality, increase in income and enhanced opportunities for livelihood.

lTo work with like minded institutions for transformation of rural India.

th5 Annual Report 2011-12 th5 Annual Report 2011-12

IKSL's Experts

7IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED6

DIRECTORS' REPORT

Dear Members,

thYour Directors have great pleasure in presenting the 5 Annual Report of the Company together with the Audited Statements of Annual Accounts for the Financial Year ended 31 March, 2012.

Financial performance of the Company during the year 2011-12 was as follows:

(` In Lakh)

Particulars 2011-12 2010- 11

Gross Revenue 18,477.95 18,915.97

Less: Cost of Goods Sold 15,357.87 14,217.49 Employees Remuneration & Benefits 686.70 642.84

Sales and General Administration Expenses 1,196.84 1,952.42Prior Period Adjustments (Net) – 113.25

Profit before Interest, Depreciation & Tax 1,236.54 1,989.97Less: Depreciation 33.95 35.43

PBIT 1,202.59 1,954.54Less: Interest 1.05 42.42

PBT 1,201.54 1912.12Less: Provision for Tax 392.35 626.99

Profit/ (Loss) after Tax 809.19 1,285.13

Balance Brought Forward from the Previous Year 199.17 (873.36)

Amount available for Appropriations 1,008.36 411.77

Appropriations:

Proposed Dividend 100.00 100.00Tax on Proposed Dividend 16.22 16.22Transfer to General Reserve 60.69 96.38Balance Carried to Balance Sheet 831.45 199.17

1,008.36 411.77

st

Performance of Company

Financial Performance

Your Company recorded Gross Revenue of ` 18,477.95 lakh during the year 2011-12 (against ` 18,915.97 lakh in 2010-11). The Company recorded Pre-tax Profit of `1,201.54 lakh in the year 2011-12 as against Profit of ` 1,912.12 lakh during the previous financial year. Your company earned a Net Profit of ` 809.19 lakh after making tax provision of ` 392.35 lakh during the year 2011-12.

During the year 2011-12, IKSL recorded gross activations of 20,92,607 and primary recharge of ` 155.74 crore. During the year, the focus of IKSL was on improving quality parameters such as 'bulk' and 'decay' and alignment of sales activity to improve the Revenue Earning Customer (REC) base as well as the Listening Customer base.

Emphasis was placed on customised services through Focused Community formation to bring in greater relevance and customization of content. A pilot was conducted in Uttar Pradesh & Uttaranchal (UPU) in a Sugarcane Community, which was supported by a Sugar Mill of Indian Potash Limited (IPL). The indicators on listening and pick up

Marketing Performance

percentages were found to improve. Based on the learnings from the pilot, the Business Model was modified from a retail society centric acquisition to a community model across the Country. The community is to associate with a collaborating agency that directly or indirectly defines the group which facilitates developing customized content for the group.

Many new initiatives, based on community centric approach, involving State Government & Central Government Projects, NABARD Projects across States, Self Help Groups, NGOs, Sugar Mills, Fisheries, Regional Rural Banks, Dairies, Growers - Rubber, Spices, Tea, Coffee were launched. Similarly, collaborative initiatives were undertaken with corporates like Mahindra, PEPSI & Field Fresh Foods (FFF) in contract farming.

To align the team, Regional workshops were organized across all the regions in October and November 2011 to emphasize on quality parameters. Best practices were shared with States' teams, emphasising the importance of Content Planning, Content Configuration and Content Management.

th5 Annual Report 2011-12

Proud owners of IKSL Green Card

7IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED6

DIRECTORS' REPORT

Dear Members,

thYour Directors have great pleasure in presenting the 5 Annual Report of the Company together with the Audited Statements of Annual Accounts for the Financial Year ended 31 March, 2012.

Financial performance of the Company during the year 2011-12 was as follows:

(` In Lakh)

Particulars 2011-12 2010- 11

Gross Revenue 18,477.95 18,915.97

Less: Cost of Goods Sold 15,357.87 14,217.49 Employees Remuneration & Benefits 686.70 642.84

Sales and General Administration Expenses 1,196.84 1,952.42Prior Period Adjustments (Net) – 113.25

Profit before Interest, Depreciation & Tax 1,236.54 1,989.97Less: Depreciation 33.95 35.43

PBIT 1,202.59 1,954.54Less: Interest 1.05 42.42

PBT 1,201.54 1912.12Less: Provision for Tax 392.35 626.99

Profit/ (Loss) after Tax 809.19 1,285.13

Balance Brought Forward from the Previous Year 199.17 (873.36)

Amount available for Appropriations 1,008.36 411.77

Appropriations:

Proposed Dividend 100.00 100.00Tax on Proposed Dividend 16.22 16.22Transfer to General Reserve 60.69 96.38Balance Carried to Balance Sheet 831.45 199.17

1,008.36 411.77

st

Performance of Company

Financial Performance

Your Company recorded Gross Revenue of ` 18,477.95 lakh during the year 2011-12 (against ` 18,915.97 lakh in 2010-11). The Company recorded Pre-tax Profit of `1,201.54 lakh in the year 2011-12 as against Profit of ` 1,912.12 lakh during the previous financial year. Your company earned a Net Profit of ` 809.19 lakh after making tax provision of ` 392.35 lakh during the year 2011-12.

During the year 2011-12, IKSL recorded gross activations of 20,92,607 and primary recharge of ` 155.74 crore. During the year, the focus of IKSL was on improving quality parameters such as 'bulk' and 'decay' and alignment of sales activity to improve the Revenue Earning Customer (REC) base as well as the Listening Customer base.

Emphasis was placed on customised services through Focused Community formation to bring in greater relevance and customization of content. A pilot was conducted in Uttar Pradesh & Uttaranchal (UPU) in a Sugarcane Community, which was supported by a Sugar Mill of Indian Potash Limited (IPL). The indicators on listening and pick up

Marketing Performance

percentages were found to improve. Based on the learnings from the pilot, the Business Model was modified from a retail society centric acquisition to a community model across the Country. The community is to associate with a collaborating agency that directly or indirectly defines the group which facilitates developing customized content for the group.

Many new initiatives, based on community centric approach, involving State Government & Central Government Projects, NABARD Projects across States, Self Help Groups, NGOs, Sugar Mills, Fisheries, Regional Rural Banks, Dairies, Growers - Rubber, Spices, Tea, Coffee were launched. Similarly, collaborative initiatives were undertaken with corporates like Mahindra, PEPSI & Field Fresh Foods (FFF) in contract farming.

To align the team, Regional workshops were organized across all the regions in October and November 2011 to emphasize on quality parameters. Best practices were shared with States' teams, emphasising the importance of Content Planning, Content Configuration and Content Management.

th5 Annual Report 2011-12

Proud owners of IKSL Green Card

IFFCO KISAN SANCHAR LIMITED8 9IFFCO KISAN SANCHAR LIMITED

AWARDS AND ACCOLADES

During 2011-12, the Company received various Awards, namely, Coffey International Award, e-World Forum 2011 Award, SKOCH Digital Inclusion Award and Manthan Award South Asia 2011 and gained national as well as international recognition for its efforts towards empowerment of farmers through mobile phones.

DIVIDEND

INDUSTRY SCENARIO

The Board has recommended a dividend of ` 2 per equity share of ` 10 each (20% of face value) for the Financial Year 2011-12. The total dividend payout will amount to ` 1.00 Crore, (Rupees One Crore only). The payment of dividend is subject to the approval by the shareholders in the ensuing Annual General Meeting of the Company.

The growth of mobile telephony in India in a short period of about twenty years has been a well-recognized success story in the World. India attained second position in terms of subscribers next only to China.

The wireless subscriber base in India was 9191.7 lakh at the end of March 2012 with Wireless Tele-density at 76% in the Country. As of March 2012, the rural subscribers stood at 3,232.7 lakh, which was 35% of total mobile subscribers. Bharti Airtel, IKSL's partner, continues to hold the highest market share in the country at around 20%.

However, the growth in mobile penetration is skewed in favour of urban centers. Despite two thirds of the population living in rural India, only one third of the subscriber base hails from this segment. The tele-density in rural India was at 38% compared to a tele-density of 162% in urban localities. This indicates the potential as well as relevance of initiatives focused on leveraging mobile phone for rural empowerment such as that of IKSL. It is observed that the rural subscription base is recording a faster cumulative growth

rate of 70% during the last five years as compared to the urban growth at 42%.

The wireless telecom industry in India is passing through a challenging phase mainly due to high competition, which is on account of proliferation of large number of operators. It is believed that the number of players in each circle is 3-4 times the global average. The highly competitive conditions are leading to tariff wars with Indian customers enjoying very low tariff in the World. Average Revenue per User (ARPU) has been eroded by 20% over the last five years. The recent judicial pronouncements leading to cancellation of 122 licenses by the Honorable Supreme Court may lead to lower competition and higher ARPU.

The All India Average Revenue Per User (ARPU) for GSM was around ` 96 per month only for the quarter ending Dec 2011. The falling prices and lower ARPU level make the telecom environment highly challenging for service providers. However, the lower tariffs have encouraged low income users, particularly from rural India, to embrace the mobile phones. In addition to falling ARPU, the competitive conditions have also placed pressure on the operators to work towards customer loyalty. The value added services of IKSL have made the mobile penetration more useful to rural customers. Since the urban markets have been penetrated to a great extent, the rural market still offers exciting opportunities for telecom industry and has been a focus of all the telecom companies. With the expansion of network and improved earning levels in rural areas, more and more villages are becoming a part of telecom revolution.

VALUE ADDED SERVICES (VAS) OF IKSL

Providing relevant and authentic information to rural population of India remained the main plank of Value Added Services (VAS) of IKSL. Efforts were intensified to ensure that services can bring some betterment in farm productivity and income resulting in improvement in living conditions of the subscribers. To generate greater interest in the information disseminated through VAS, additional subject areas of interest such as health, employment and education were added. In our endeavor to cater to the immediate information needs of the farmers, Helpline facilities were strengthened and the concept of Hosted Contact Centre (HCC) was implemented. Strength of Content staff at the State level was also doubled to cope up with the increased demand on the services.

DIRECTORS' REPORTContinued

CEO, IKSL, presenting the first dividend cheque to MD, and Jt. MD of IFFCO

IKSL pays its 1st dividendThe Company declared its maiden dividend of 20% of the face value of share for the financial year 2010-11 and paid a total amount of Rs.1.00 crore as dividend to its share holders/promoters.

Women Dairy farmers at Changa Village of Anand district in Gujarat hearing & utilizing the voice mail messages received from IKSL. These farmers have recorded a healthy rise in milk productivity from their livestock by adopting the suggested best practices related to Animal Husbandry & Dairy Farming.

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED8 9IFFCO KISAN SANCHAR LIMITED

AWARDS AND ACCOLADES

During 2011-12, the Company received various Awards, namely, Coffey International Award, e-World Forum 2011 Award, SKOCH Digital Inclusion Award and Manthan Award South Asia 2011 and gained national as well as international recognition for its efforts towards empowerment of farmers through mobile phones.

DIVIDEND

INDUSTRY SCENARIO

The Board has recommended a dividend of ` 2 per equity share of ` 10 each (20% of face value) for the Financial Year 2011-12. The total dividend payout will amount to ` 1.00 Crore, (Rupees One Crore only). The payment of dividend is subject to the approval by the shareholders in the ensuing Annual General Meeting of the Company.

The growth of mobile telephony in India in a short period of about twenty years has been a well-recognized success story in the World. India attained second position in terms of subscribers next only to China.

The wireless subscriber base in India was 9191.7 lakh at the end of March 2012 with Wireless Tele-density at 76% in the Country. As of March 2012, the rural subscribers stood at 3,232.7 lakh, which was 35% of total mobile subscribers. Bharti Airtel, IKSL's partner, continues to hold the highest market share in the country at around 20%.

However, the growth in mobile penetration is skewed in favour of urban centers. Despite two thirds of the population living in rural India, only one third of the subscriber base hails from this segment. The tele-density in rural India was at 38% compared to a tele-density of 162% in urban localities. This indicates the potential as well as relevance of initiatives focused on leveraging mobile phone for rural empowerment such as that of IKSL. It is observed that the rural subscription base is recording a faster cumulative growth

rate of 70% during the last five years as compared to the urban growth at 42%.

The wireless telecom industry in India is passing through a challenging phase mainly due to high competition, which is on account of proliferation of large number of operators. It is believed that the number of players in each circle is 3-4 times the global average. The highly competitive conditions are leading to tariff wars with Indian customers enjoying very low tariff in the World. Average Revenue per User (ARPU) has been eroded by 20% over the last five years. The recent judicial pronouncements leading to cancellation of 122 licenses by the Honorable Supreme Court may lead to lower competition and higher ARPU.

The All India Average Revenue Per User (ARPU) for GSM was around ` 96 per month only for the quarter ending Dec 2011. The falling prices and lower ARPU level make the telecom environment highly challenging for service providers. However, the lower tariffs have encouraged low income users, particularly from rural India, to embrace the mobile phones. In addition to falling ARPU, the competitive conditions have also placed pressure on the operators to work towards customer loyalty. The value added services of IKSL have made the mobile penetration more useful to rural customers. Since the urban markets have been penetrated to a great extent, the rural market still offers exciting opportunities for telecom industry and has been a focus of all the telecom companies. With the expansion of network and improved earning levels in rural areas, more and more villages are becoming a part of telecom revolution.

VALUE ADDED SERVICES (VAS) OF IKSL

Providing relevant and authentic information to rural population of India remained the main plank of Value Added Services (VAS) of IKSL. Efforts were intensified to ensure that services can bring some betterment in farm productivity and income resulting in improvement in living conditions of the subscribers. To generate greater interest in the information disseminated through VAS, additional subject areas of interest such as health, employment and education were added. In our endeavor to cater to the immediate information needs of the farmers, Helpline facilities were strengthened and the concept of Hosted Contact Centre (HCC) was implemented. Strength of Content staff at the State level was also doubled to cope up with the increased demand on the services.

DIRECTORS' REPORTContinued

CEO, IKSL, presenting the first dividend cheque to MD, and Jt. MD of IFFCO

IKSL pays its 1st dividendThe Company declared its maiden dividend of 20% of the face value of share for the financial year 2010-11 and paid a total amount of Rs.1.00 crore as dividend to its share holders/promoters.

Women Dairy farmers at Changa Village of Anand district in Gujarat hearing & utilizing the voice mail messages received from IKSL. These farmers have recorded a healthy rise in milk productivity from their livestock by adopting the suggested best practices related to Animal Husbandry & Dairy Farming.

th5 Annual Report 2011-12

11IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED10

During 2011-12, the number of focused communities formed increased to 105 as compared to 13 corresponding to the previous financial year. All these communities have been acquired with members having a common interest, namely, a common crop or common livelihood. The members of these communities are being provided with VAS, specific to the interest of the community. In order to strengthen the Content department and to improve the quality of VAS, the strength of the Content team in various States was increased from 18 in previous year 2010-11 to 35 during the year 2011-12.

For providing Content accurate and authentic Content, subject experts and organizations of National and International level were associated. CABI, MSSRF, IMD, Directorate of Marketing and Inspection (through Agmarknet), NCDEX, SAUs and ICAR institutions were the major sources of Content. Third party audit was regularly undertaken to assure the quality of Content of voice messages and queries answered over Helpline. Adequacy, authenticity, relevance and clarity of information provided

were considered for quality audit.

All the activities of VAS are being implemented and monitored through the Integrated Information Management System (IIMS) developed and refined internally for Content Management. Content team was provided training on operating the system and using the data base for improving the services rendered by them.

During the year, a pilot project “Sanjeevani” was implemented in Karnataka and U.P. (E) to strengthen the Helpline with additional manpower and Content Verticals. Four additional persons were engaged for a period of six months to attend Helpline with extended time period from 6.00 AM to 10 PM. Health and Employment were added as verticals for information dissemination in our Value Added Services as a result of which Helpline queries increased in numbers.

DIRECTORS' REPORTContinued

Mahindra Samriddhi Kisan Samudai organised a farmers meeting at Kavathe Mhankal, District-Sangli

AUDIT COMMITTEE

DIRECTORS

AUDITORS

The Audit Committee of the Board of Directors presently consisted of members, namely, Shri Ranjan Sharma, Shri Rakesh Kapur, Shri S.C.Mittal, Shri Manish Gupta, Shri Nilanjan Roy and Shri Arabinda Roy. As per the provisions of Section 292A of Companies Act, 1956, four meetings of Audit Committee were held on 22.06.2011, 26.09.2011, 14.12.2011 and on 26.03.2012.

As per Section 256 of the Companies Act, Dr. U.S. Awasthi and Shri Arabinda Roy, Directors of the Company would be retiring at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. Your Directors also recommended the reappointment of retiring Directors.

The Auditors, M/s S.K. Mehta & Co., Chartered Accountants retire at the Annual General Meeting of your Company and being eligible, offer themselves for re- appointment.

The observations of the Auditors in their Report on Accounts read with the relevant notes are self- explanatory.

NEW INITIATIVES

FUTURE OUTLOOK

Kisan Call Centre (KCC) Management Services

Department of Agriculture & Cooperation, Ministry of Agriculture (DAC), had engaged IKSL for managing the Kisan Call Centre (KCC) services for the period from 2012 to 2015. IKSL was required to set up the necessary infrastructure and manpower for addressing the queries raised by farmers from the entire country at 13 centres located in Chandigarh, Jammu, Jaipur, Patna, Kanpur, Jabalpur, Guwahati, Kolkatta, Pune, Ahmedabad, Bengaluru, Hyderabad and Coimbatore. IKSL had completed installation of all the necessary infrastructure to run the Kisan Call Centres successfully.

The 3G services launched in India in 2011, are expected to pick- up in the rural areas. Also, the broadband facility is expected to be made available in the rural areas by special Government initiatives. Smart Phones are becoming popular and are expected to reach the rural market at affordable prices. In such circumstances, Value Added Services are also expected to undergo innovative changes offering information to the farmers not only through audio messages but also through video programs.

IKSL had been associated for undertaking a study on farmers' ability to use tablet PC for knowledge transfer, which was conducted by International Horticulture Innovation and Training Centre (IHITC) for polyhouse farmers of Rajasthan. While the report is awaited, affordable tablet PCs are expected to play an important role for effective knowledge transfer.

MD, IKSL addressing the participants of workshop for content managers.

th5 Annual Report 2011-12

11IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED10

During 2011-12, the number of focused communities formed increased to 105 as compared to 13 corresponding to the previous financial year. All these communities have been acquired with members having a common interest, namely, a common crop or common livelihood. The members of these communities are being provided with VAS, specific to the interest of the community. In order to strengthen the Content department and to improve the quality of VAS, the strength of the Content team in various States was increased from 18 in previous year 2010-11 to 35 during the year 2011-12.

For providing Content accurate and authentic Content, subject experts and organizations of National and International level were associated. CABI, MSSRF, IMD, Directorate of Marketing and Inspection (through Agmarknet), NCDEX, SAUs and ICAR institutions were the major sources of Content. Third party audit was regularly undertaken to assure the quality of Content of voice messages and queries answered over Helpline. Adequacy, authenticity, relevance and clarity of information provided

were considered for quality audit.

All the activities of VAS are being implemented and monitored through the Integrated Information Management System (IIMS) developed and refined internally for Content Management. Content team was provided training on operating the system and using the data base for improving the services rendered by them.

During the year, a pilot project “Sanjeevani” was implemented in Karnataka and U.P. (E) to strengthen the Helpline with additional manpower and Content Verticals. Four additional persons were engaged for a period of six months to attend Helpline with extended time period from 6.00 AM to 10 PM. Health and Employment were added as verticals for information dissemination in our Value Added Services as a result of which Helpline queries increased in numbers.

DIRECTORS' REPORTContinued

Mahindra Samriddhi Kisan Samudai organised a farmers meeting at Kavathe Mhankal, District-Sangli

AUDIT COMMITTEE

DIRECTORS

AUDITORS

The Audit Committee of the Board of Directors presently consisted of members, namely, Shri Ranjan Sharma, Shri Rakesh Kapur, Shri S.C.Mittal, Shri Manish Gupta, Shri Nilanjan Roy and Shri Arabinda Roy. As per the provisions of Section 292A of Companies Act, 1956, four meetings of Audit Committee were held on 22.06.2011, 26.09.2011, 14.12.2011 and on 26.03.2012.

As per Section 256 of the Companies Act, Dr. U.S. Awasthi and Shri Arabinda Roy, Directors of the Company would be retiring at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. Your Directors also recommended the reappointment of retiring Directors.

The Auditors, M/s S.K. Mehta & Co., Chartered Accountants retire at the Annual General Meeting of your Company and being eligible, offer themselves for re- appointment.

The observations of the Auditors in their Report on Accounts read with the relevant notes are self- explanatory.

NEW INITIATIVES

FUTURE OUTLOOK

Kisan Call Centre (KCC) Management Services

Department of Agriculture & Cooperation, Ministry of Agriculture (DAC), had engaged IKSL for managing the Kisan Call Centre (KCC) services for the period from 2012 to 2015. IKSL was required to set up the necessary infrastructure and manpower for addressing the queries raised by farmers from the entire country at 13 centres located in Chandigarh, Jammu, Jaipur, Patna, Kanpur, Jabalpur, Guwahati, Kolkatta, Pune, Ahmedabad, Bengaluru, Hyderabad and Coimbatore. IKSL had completed installation of all the necessary infrastructure to run the Kisan Call Centres successfully.

The 3G services launched in India in 2011, are expected to pick- up in the rural areas. Also, the broadband facility is expected to be made available in the rural areas by special Government initiatives. Smart Phones are becoming popular and are expected to reach the rural market at affordable prices. In such circumstances, Value Added Services are also expected to undergo innovative changes offering information to the farmers not only through audio messages but also through video programs.

IKSL had been associated for undertaking a study on farmers' ability to use tablet PC for knowledge transfer, which was conducted by International Horticulture Innovation and Training Centre (IHITC) for polyhouse farmers of Rajasthan. While the report is awaited, affordable tablet PCs are expected to play an important role for effective knowledge transfer.

MD, IKSL addressing the participants of workshop for content managers.

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED12 13IFFCO KISAN SANCHAR LIMITED

PUBLIC DEPOSITS

PARTICULARS OF EMPLOYEES

MOU

DIRECTORS' RESPONSIBILITY STATEMENT

Your Company has not accepted or renewed any public deposits during the year under report.

The Company had no employee in the category specified under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Amendment Rules, 2011 during the period ended 31st March, 2012.

Your Company had entered into Memorandum of Understanding (MOU) with Indian Farm Forestry Development Cooperative Limited (IFFDC) to provide Value Added Services to the rural people for their development.

As required under Section 217 (2AA) of the Companies Act, 1956, your Directors state that:

(i) in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures in the financial statement;

DIRECTORS' REPORTContinued

(ii) the Accounting Policies have been selected and applied consistently and judgments and estimates have been reasonably and prudently made when required so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(iii) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

(iv) the annual accounts for the financial year have been prepared on a going concern basis.

As the Company primarily deals with the trading and service provider industry, and is engaged in the business of providing value added services on mobile telephony in rural and semi urban areas of the country, particulars related to the energy conservation, technology absorption, etc. are not applicable to the Company. There was no foreign exchange income during the year 2011-12. However, foreign exchange outgo during the year was USD 10,934.22 equivalent to INR 4,57,453.

INFORMATION PURSUANT TO SECTION 217(1)(e) OF THE COMPANIES ACT, 1956

of Agriculture, Department of Telecommunications as well as various State Governments, regulatory and statutory authorities for their valuable support and guidance.

The Directors also place on record their appreciation of the continued support extended by the Member Shareholders, Joint Venture Partners, Content Partners, Institutional Partners, Community Partners and Business Partners in the company's activities.

Finally, your Directors express their sincere thanks to the Statutory Auditors, Internal Auditors, Company's Bankers and Vendors.

ACKNOWLEDGEMENT

Your Directors take this opportunity to express their gratitude to all the employees for their significant personal efforts and their collective contribution to enable the company to achieve good performance and maintain steady progress.

The Board of Directors places on record its deep appreciation of the valuable services and dedicated efforts of the members of the Company in the achievements during 2011-12. The Board also wishes to thank the Government of India, particularly, the Ministry

On behalf of the Board,For IFFCO Kisan Sanchar Limited

thDate: 25 June, 2012Place: New Delhi Chairman

Program in progress to issue Green SIM Cards to progressive farmers group - Adarsh Rythu Scheme in A.P.

Promotional event to educate the farmers about the benefits of using IKSL Green SIM cards in Odisha

Farmers being briefed on the benefits of ISKL Green Card

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED12 13IFFCO KISAN SANCHAR LIMITED

PUBLIC DEPOSITS

PARTICULARS OF EMPLOYEES

MOU

DIRECTORS' RESPONSIBILITY STATEMENT

Your Company has not accepted or renewed any public deposits during the year under report.

The Company had no employee in the category specified under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Amendment Rules, 2011 during the period ended 31st March, 2012.

Your Company had entered into Memorandum of Understanding (MOU) with Indian Farm Forestry Development Cooperative Limited (IFFDC) to provide Value Added Services to the rural people for their development.

As required under Section 217 (2AA) of the Companies Act, 1956, your Directors state that:

(i) in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures in the financial statement;

DIRECTORS' REPORTContinued

(ii) the Accounting Policies have been selected and applied consistently and judgments and estimates have been reasonably and prudently made when required so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

(iii) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

(iv) the annual accounts for the financial year have been prepared on a going concern basis.

As the Company primarily deals with the trading and service provider industry, and is engaged in the business of providing value added services on mobile telephony in rural and semi urban areas of the country, particulars related to the energy conservation, technology absorption, etc. are not applicable to the Company. There was no foreign exchange income during the year 2011-12. However, foreign exchange outgo during the year was USD 10,934.22 equivalent to INR 4,57,453.

INFORMATION PURSUANT TO SECTION 217(1)(e) OF THE COMPANIES ACT, 1956

of Agriculture, Department of Telecommunications as well as various State Governments, regulatory and statutory authorities for their valuable support and guidance.

The Directors also place on record their appreciation of the continued support extended by the Member Shareholders, Joint Venture Partners, Content Partners, Institutional Partners, Community Partners and Business Partners in the company's activities.

Finally, your Directors express their sincere thanks to the Statutory Auditors, Internal Auditors, Company's Bankers and Vendors.

ACKNOWLEDGEMENT

Your Directors take this opportunity to express their gratitude to all the employees for their significant personal efforts and their collective contribution to enable the company to achieve good performance and maintain steady progress.

The Board of Directors places on record its deep appreciation of the valuable services and dedicated efforts of the members of the Company in the achievements during 2011-12. The Board also wishes to thank the Government of India, particularly, the Ministry

On behalf of the Board,For IFFCO Kisan Sanchar Limited

thDate: 25 June, 2012Place: New Delhi Chairman

Program in progress to issue Green SIM Cards to progressive farmers group - Adarsh Rythu Scheme in A.P.

Promotional event to educate the farmers about the benefits of using IKSL Green SIM cards in Odisha

Farmers being briefed on the benefits of ISKL Green Card

th5 Annual Report 2011-12

15IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED14

AUDITOR'S REPORT ANNEXURE TO THE AUDITOR'S REPORT OF IFFCO KISAN SANCHARLIMITEDTo the members of IFFCO KISAN SANCHAR LIMITED

We have audited the attached Balance Sheet of IFFCO KISAN SANCHAR LIMITED as at 31st March 2012, the Statement of Profit and Loss and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. As required by the Companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion proper books of account as required by law have been kept by the

Company so far as it appears from our examination of those books.

(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(v) On the basis of written representations received from the directors, as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2012,

(b) in the case of the Statement of Profit and Loss of the profit for the year ended on that date, and

(c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

1) In respect of Fixed Assets of the Company:

a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b) As informed to us, the fixed assets are physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

c) During the year the Company has not disposed off substantial part of fixed assets.

2) In respect of inventories of the Company:

a) The inventory has been physically verified by the management at reasonable intervals.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventories, wherever material, have been properly dealt with in the books of account.

3) (a) The Company has not granted any loans secured or unsecured to any Company, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

In view of clause (3) (a) above the clauses 3 (b), 3 (c) and 3 (d) are not applicable.

3) (e) The Company has not taken any loans, secured or unsecured from companies, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

In view of clause (3) (e) above the clauses 3 (f) and 3 (g) are not applicable.

4) In our opinion, and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business for purchase of inventory and fixed assets and with regard to the sale of goods. In our opinion there is no continuing failure to correct major weakness in internal control.

For S.K.Mehta & Co.Chartered AccountantsFirm Reg. No. 000478N

Place: New Delhi (Rohit Mehta)Dated :25th June 2012 Partner

M. No. 091382

(Referred to in Paragraph 1 of our report of even date)

th5 Annual Report 2011-12 th5 Annual Report 2011-12

15IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED14

AUDITOR'S REPORT ANNEXURE TO THE AUDITOR'S REPORT OF IFFCO KISAN SANCHARLIMITEDTo the members of IFFCO KISAN SANCHAR LIMITED

We have audited the attached Balance Sheet of IFFCO KISAN SANCHAR LIMITED as at 31st March 2012, the Statement of Profit and Loss and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. As required by the Companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to above, we report that:

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion proper books of account as required by law have been kept by the

Company so far as it appears from our examination of those books.

(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(v) On the basis of written representations received from the directors, as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2012,

(b) in the case of the Statement of Profit and Loss of the profit for the year ended on that date, and

(c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

1) In respect of Fixed Assets of the Company:

a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b) As informed to us, the fixed assets are physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

c) During the year the Company has not disposed off substantial part of fixed assets.

2) In respect of inventories of the Company:

a) The inventory has been physically verified by the management at reasonable intervals.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventories, wherever material, have been properly dealt with in the books of account.

3) (a) The Company has not granted any loans secured or unsecured to any Company, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

In view of clause (3) (a) above the clauses 3 (b), 3 (c) and 3 (d) are not applicable.

3) (e) The Company has not taken any loans, secured or unsecured from companies, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

In view of clause (3) (e) above the clauses 3 (f) and 3 (g) are not applicable.

4) In our opinion, and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business for purchase of inventory and fixed assets and with regard to the sale of goods. In our opinion there is no continuing failure to correct major weakness in internal control.

For S.K.Mehta & Co.Chartered AccountantsFirm Reg. No. 000478N

Place: New Delhi (Rohit Mehta)Dated :25th June 2012 Partner

M. No. 091382

(Referred to in Paragraph 1 of our report of even date)

th5 Annual Report 2011-12 th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED16 17IFFCO KISAN SANCHAR LIMITED

5) To the best of our knowledge and belief and according to information and explanations given to us, the Company has not entered in to the transactions that needed to be entered into the Register in pursuance of section 301 of the Companies Act, 1956.

6) Company has not accepted any deposits during the year from the public and hence provisions of section 58-A, 58 AA of the Companies Act, 1956 are not applicable.

7) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8) The maintenance of cost records as prescribed under clause (d) of sub-section of section 209 of the Companies Act, 1956 is not applicable for the Company.

9) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Excise Duty, Royalty, Cess and other statutory dues as applicable, with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax , Sales Tax, Wealth Tax, Service Tax, Excise Duty, Royalty, Cess and other statutory dues were in arrears, as at 31.03.2012 for a period of more than six months from the date they became payable.

10) The Company has no accumulated losses and has not incurred cash loss during the financial year covered by our report and the immediately preceding financial year.

11) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment any loan to financial institutions or banks.

12) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company. Therefore the provisions of clause 4 (XIII) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

14) In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. Therefore the provisions of clause 4(XIV) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

15) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16) In our opinion and according to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, we report that no funds on short-term basis have been used for long- term investment and vice versa.

17) According to information and explanations given to us, the Company has not taken any term loans from any financial institutions hence not commented upon.

18) The Company has not made any preferential allotment of shares during the year.

19) The Company has not issued any debentures during the year.

20) The Company has not raised any money by public issues during the year.

21) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

ANNEXURE TO THE AUDITOR'S REPORT OF IFFCO KISAN SANCHARLIMITEDContinued

For S.K.Mehta & Co.Chartered AccountantsFirm Reg. No. 000478N

Place: New Delhi (Rohit Mehta)Dated :25th June 2012 Partner

M. No. 091382

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED16 17IFFCO KISAN SANCHAR LIMITED

5) To the best of our knowledge and belief and according to information and explanations given to us, the Company has not entered in to the transactions that needed to be entered into the Register in pursuance of section 301 of the Companies Act, 1956.

6) Company has not accepted any deposits during the year from the public and hence provisions of section 58-A, 58 AA of the Companies Act, 1956 are not applicable.

7) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8) The maintenance of cost records as prescribed under clause (d) of sub-section of section 209 of the Companies Act, 1956 is not applicable for the Company.

9) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Excise Duty, Royalty, Cess and other statutory dues as applicable, with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax , Sales Tax, Wealth Tax, Service Tax, Excise Duty, Royalty, Cess and other statutory dues were in arrears, as at 31.03.2012 for a period of more than six months from the date they became payable.

10) The Company has no accumulated losses and has not incurred cash loss during the financial year covered by our report and the immediately preceding financial year.

11) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment any loan to financial institutions or banks.

12) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company. Therefore the provisions of clause 4 (XIII) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

14) In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. Therefore the provisions of clause 4(XIV) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

15) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16) In our opinion and according to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, we report that no funds on short-term basis have been used for long- term investment and vice versa.

17) According to information and explanations given to us, the Company has not taken any term loans from any financial institutions hence not commented upon.

18) The Company has not made any preferential allotment of shares during the year.

19) The Company has not issued any debentures during the year.

20) The Company has not raised any money by public issues during the year.

21) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

ANNEXURE TO THE AUDITOR'S REPORT OF IFFCO KISAN SANCHARLIMITEDContinued

For S.K.Mehta & Co.Chartered AccountantsFirm Reg. No. 000478N

Place: New Delhi (Rohit Mehta)Dated :25th June 2012 Partner

M. No. 091382

th5 Annual Report 2011-12

19IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED18

BALANCE SHEET

Particulars Note AS AT 31-03-2012 AS AT 31-03-2011I. EQUITY AND LIABILITIES(1) Shareholders' Funds

(a) Share capital 2.1 50,000,000 50,000,000(b) Reserves and Surplus 2.2 98,852,327 29,555,155

148,852,327 79,555,155

(2) Grant Deferred 2.3 3,671,662 8,142,099

(3) Non- Current Liabilities (a) Long-Term Liabilities 2.4 10,457,494 12,833,993 (b) Long-Term Provisions 2.5 2,721,426 2,713,264

13,178,920 15,547,257 (4) Current Liabilities (a) Short-Term Borrowings 2.6 - 9,945,455 (b) Trade Payables 4,560,856 4,556,714 (c) Other Current Liabilities 2.7 42,788,428 72,185,025 (d) Short-Term Provisions 2.8 11,622,250 11,622,250

58,971,534 98,309,444 TOTAL 224,674,443 201,553,955

II ASSETS 1)Non Current Assets (a) Fixed assets (i) Tangible Assets 2.9 7,445,226 8,597,658 (ii) Intangible Assets 2.9 1,252,052 2,503,634 (b) Deferred Tax Assets (net) 2.10 3,642,370 5,377,368 (c) Long-Term Loans and Advances 2.11 1,095,264 735,214

13,434,912 17,213,874 (2) Current Assets (a) Inventories 2.12 26,843,469 19,015,278 (b) Trade Receivables 2.13 652,562 3,513,874 (c) Cash and Bank Balances 2.14 103,793,639 14,300,326 (d) Short-Term Loans and Advances 2.15 77,304,403 147,510,603 (e) Other Current Assets 2.16 2,645,458 -

211,239,531 184,340,081 TOTAL 224,674,443 201,553,955

Significant Accounting Policies 1Notes on Account 2Notes referred above are integral part of the Balance Sheet

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

Amount in `

As at 31st March 2012

STATEMENT OFPROFIT & LOSS

Year Ended Year EndedParticulars Note 31-03-2012 31-03-2011

Revenue from Operations 2.17 1,839,075,535 1,876,467,006 Other Income 2.18 8,719,739 15,129,995

Total Revenue 1,847,795,274 1,891,597,001

Expenses :Purchases of Stock- in- Trade 2.19 1,544,436,556 1,402,196,556 Changes in Inventories of Stock- in- Trade 2.20 (8,650,325) 19,552,245 Employee Benefits Expense 2.21 68,670,481 64,284,420 Finance Costs 2.22 105,234 4,242,011 Depreciation and Amortization Expense 3,394,654 3,542,877 Other Expenses 2.23 119,684,253 195,241,814 Prior Period Adjustments (Net) 2.24 - 11,325,253

Total Expenses 1,727,640,853 1,700,385,176

Profit Before Tax 120,154,421 191,211,825 Tax Expense :1) Current Tax 37,500,000 32,500,000 2) Deferred Tax 1,734,999 34,398,524 3) Credit for MAT Entitlement - (4,200,000)

39,234,999 62,698,524

Profit for the year 80,919,422 128,513,301

Earnings per equity share:Basic & Diluted 16.18 25.70

Significant Accounting Policies 1Notes on Account 2

Notes referred above form an integral part of the Statement of Profit & Loss

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

Amount in `stFor the year ended 31 March 2012

th5 Annual Report 2011-12 th5 Annual Report 2011-12

19IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED18

BALANCE SHEET

Particulars Note AS AT 31-03-2012 AS AT 31-03-2011I. EQUITY AND LIABILITIES(1) Shareholders' Funds

(a) Share capital 2.1 50,000,000 50,000,000(b) Reserves and Surplus 2.2 98,852,327 29,555,155

148,852,327 79,555,155

(2) Grant Deferred 2.3 3,671,662 8,142,099

(3) Non- Current Liabilities (a) Long-Term Liabilities 2.4 10,457,494 12,833,993 (b) Long-Term Provisions 2.5 2,721,426 2,713,264

13,178,920 15,547,257 (4) Current Liabilities (a) Short-Term Borrowings 2.6 - 9,945,455 (b) Trade Payables 4,560,856 4,556,714 (c) Other Current Liabilities 2.7 42,788,428 72,185,025 (d) Short-Term Provisions 2.8 11,622,250 11,622,250

58,971,534 98,309,444 TOTAL 224,674,443 201,553,955

II ASSETS 1)Non Current Assets (a) Fixed assets (i) Tangible Assets 2.9 7,445,226 8,597,658 (ii) Intangible Assets 2.9 1,252,052 2,503,634 (b) Deferred Tax Assets (net) 2.10 3,642,370 5,377,368 (c) Long-Term Loans and Advances 2.11 1,095,264 735,214

13,434,912 17,213,874 (2) Current Assets (a) Inventories 2.12 26,843,469 19,015,278 (b) Trade Receivables 2.13 652,562 3,513,874 (c) Cash and Bank Balances 2.14 103,793,639 14,300,326 (d) Short-Term Loans and Advances 2.15 77,304,403 147,510,603 (e) Other Current Assets 2.16 2,645,458 -

211,239,531 184,340,081 TOTAL 224,674,443 201,553,955

Significant Accounting Policies 1Notes on Account 2Notes referred above are integral part of the Balance Sheet

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

Amount in `

As at 31st March 2012

STATEMENT OFPROFIT & LOSS

Year Ended Year EndedParticulars Note 31-03-2012 31-03-2011

Revenue from Operations 2.17 1,839,075,535 1,876,467,006 Other Income 2.18 8,719,739 15,129,995

Total Revenue 1,847,795,274 1,891,597,001

Expenses :Purchases of Stock- in- Trade 2.19 1,544,436,556 1,402,196,556 Changes in Inventories of Stock- in- Trade 2.20 (8,650,325) 19,552,245 Employee Benefits Expense 2.21 68,670,481 64,284,420 Finance Costs 2.22 105,234 4,242,011 Depreciation and Amortization Expense 3,394,654 3,542,877 Other Expenses 2.23 119,684,253 195,241,814 Prior Period Adjustments (Net) 2.24 - 11,325,253

Total Expenses 1,727,640,853 1,700,385,176

Profit Before Tax 120,154,421 191,211,825 Tax Expense :1) Current Tax 37,500,000 32,500,000 2) Deferred Tax 1,734,999 34,398,524 3) Credit for MAT Entitlement - (4,200,000)

39,234,999 62,698,524

Profit for the year 80,919,422 128,513,301

Earnings per equity share:Basic & Diluted 16.18 25.70

Significant Accounting Policies 1Notes on Account 2

Notes referred above form an integral part of the Statement of Profit & Loss

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

Amount in `stFor the year ended 31 March 2012

th5 Annual Report 2011-12 th5 Annual Report 2011-12

21IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED20

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

CASH FLOW STATEMENT

Year Ended Year Ended31-03-2012 31-03-2011

A. Cash Flow from Operating Activities

Net Profit Before Tax 120,154,421 191,211,825

Adjustment for :Depreciation 3,394,654 3,542,877 Interest Income (2,939,400) - Provisions no longer Required Written back (1,056,690) (10,098,865)Fixed Assets written Off/Loss on sale of Fixed Assets 35,004 144,992 Interest Expenses 105,234 4,242,011

Operating Profit before Working Capital Changes 119,693,223 189,042,840

Adjustment ForDecrease / (Increase) in Inventories (7,828,191) 26,857,599 Decrease in Trade Receivables 3,918,002 27,441,130 Decrease / (Increase) in Loans and Advances 59,698,103 (4,665,156)Increase / (Decrease) in Trade Payables 4,142 (1,141,896)Increase / (Decrease) in Other Liabilities & Provisions (31,764,934) 1,381,292

Cash generated from operations 143,720,345 238,915,809

Direct Taxes Paid (27,058,013) (38,098,722)Net Cash from Operating Activities - A 116,662,332 200,817,087

B. Cash Flow From Investing Activities

Purchase of Fixed Assets (1,048,331) (2,316,725)Sale of Fixed Assets 22,688

Net Cash used in Investing Activities - B (1,025,643) (2,316,725)

C. Cash Flow From Financing Activities

(Decrease) in Short Term Borrowings (9,945,455) (13,404,825)(Decrease) in Loan from IFFCO - (175,205,904)Grant from GSM (4,470,437) (3,573,752)Payment of Dividend and Dividend Tax (11,622,250) - Interest Expenses (105,234) (4,242,011)

Net Cash Flow From Financing Activities - C (26,143,376) (196,426,492)

Net Increase in Cash and Cash Equivalents (A+B+C) 89,493,313 2,073,870 Opening Cash & Cash Equivalents 14,300,326 12,226,456 Closing Cash & Cash Equivalents 103,793,639 14,300,326

Amount in ` Amount in `

stFor the year ended 31 March 2012

Year Ended Year Ended31-03-2012 31-03-2011

Notes:

1. Cash and Cash Equivalents Consists of Cash in Hand and Balance with Banks. Cash and Cash Equivalents included in the Cash Flow Statement comprise of following Balance Sheet amounts as per note 2.14

Cash & Cash Equivalents 38,793,639 14,300,326 Other Bank Balance (Term Deposits having maturity period above 3 months) 65,000,000 -

103,793,639 14,300,326

2. Cash Flow Statement is prepared in accordance wth indirect method precribed in 'Accounting Standard - 3 ' on Cash Flow Statements.

th5 Annual Report 2011-12

21IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED20

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

CASH FLOW STATEMENT

Year Ended Year Ended31-03-2012 31-03-2011

A. Cash Flow from Operating Activities

Net Profit Before Tax 120,154,421 191,211,825

Adjustment for :Depreciation 3,394,654 3,542,877 Interest Income (2,939,400) - Provisions no longer Required Written back (1,056,690) (10,098,865)Fixed Assets written Off/Loss on sale of Fixed Assets 35,004 144,992 Interest Expenses 105,234 4,242,011

Operating Profit before Working Capital Changes 119,693,223 189,042,840

Adjustment ForDecrease / (Increase) in Inventories (7,828,191) 26,857,599 Decrease in Trade Receivables 3,918,002 27,441,130 Decrease / (Increase) in Loans and Advances 59,698,103 (4,665,156)Increase / (Decrease) in Trade Payables 4,142 (1,141,896)Increase / (Decrease) in Other Liabilities & Provisions (31,764,934) 1,381,292

Cash generated from operations 143,720,345 238,915,809

Direct Taxes Paid (27,058,013) (38,098,722)Net Cash from Operating Activities - A 116,662,332 200,817,087

B. Cash Flow From Investing Activities

Purchase of Fixed Assets (1,048,331) (2,316,725)Sale of Fixed Assets 22,688

Net Cash used in Investing Activities - B (1,025,643) (2,316,725)

C. Cash Flow From Financing Activities

(Decrease) in Short Term Borrowings (9,945,455) (13,404,825)(Decrease) in Loan from IFFCO - (175,205,904)Grant from GSM (4,470,437) (3,573,752)Payment of Dividend and Dividend Tax (11,622,250) - Interest Expenses (105,234) (4,242,011)

Net Cash Flow From Financing Activities - C (26,143,376) (196,426,492)

Net Increase in Cash and Cash Equivalents (A+B+C) 89,493,313 2,073,870 Opening Cash & Cash Equivalents 14,300,326 12,226,456 Closing Cash & Cash Equivalents 103,793,639 14,300,326

Amount in ` Amount in `

stFor the year ended 31 March 2012

Year Ended Year Ended31-03-2012 31-03-2011

Notes:

1. Cash and Cash Equivalents Consists of Cash in Hand and Balance with Banks. Cash and Cash Equivalents included in the Cash Flow Statement comprise of following Balance Sheet amounts as per note 2.14

Cash & Cash Equivalents 38,793,639 14,300,326 Other Bank Balance (Term Deposits having maturity period above 3 months) 65,000,000 -

103,793,639 14,300,326

2. Cash Flow Statement is prepared in accordance wth indirect method precribed in 'Accounting Standard - 3 ' on Cash Flow Statements.

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED22 23IFFCO KISAN SANCHAR LIMITED

NOTE NO.1 - SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation of Financial Statements

2. Use of Estimates

3. Fixed Assets

4. Intangible Assets

The Financial Statements have been prepared on accrual basis of accounting under the historical cost convention in accordance with the generally accepted accounting principles in India, and the relevant provisions of Companies Act, 1956 including accounting standards notified there under.

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumptions to be made that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results materialize.

Fixed Assets are stated at historical cost less accumulated depreciation. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

An intangible asset is recognised where it is probable that the future economic benefits attributable to the asset will flow

to the company and the cost of the asset can be measured reliably. Such assets are stated at cost less accumulated amortization.

a) Depreciation on Fixed Assets is provided on straight line method as per rates prescribed under Schedule XIV of the Companies Act, 1956.

b) Assets are depreciated to the extent of 95% of the original cost except assets individually costing up to Rs. 5,000/- which are fully depreciated in the year of acquisition.

c) Addition to assets is depreciated for the full year irrespective of the date of addition and no depreciation is provided on assets sold/discarded during the year.

d) Cost of Computer Software recognized as intangible asset is amortized over a period of legal right or three year whichever is earlier.

At each balance sheet a review is made whether indication exists that asset has been impaired. In case such indication exists, an impairment loss is recognized wherever carrying amount of an asset exceed its recoverable amount. Recoverable amount is higher of the 'net selling price' of the assets and 'value in use'.

5. Depreciation/Amortization

6. Impairment of Assets

7. Inventories

8. Revenue Recognition

Inventories are valued at lower of cost and net realizable value, The cost is determined on First-in-First-out basis.

Revenue is recognised to the extent that it can reliably measured and is probable that the economic benefits will flow to the Company.

a) Sales

Sales are accounted for on the basis of invoices raised by the Company whereby all significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership. Sales are net of rebates and discount.

b) Other Income

(i) Margin and additional margin on 'talk time' are recognised as revenue at the time of purchase of talk time.

(ii) Activation margin is recognised as revenue as and when the Subscriber's SIM (Subscriber Identity Module) is activated and Margin on Prepaid Enrolment Form (PEF) is recognised on acceptance of the same by the Service Provider.

(iii) Insurance Claims and claim against marketing expenses are recognised when no significant uncertainty exists with regards to the amount to be realized and ultimate collection thereof.

In accordance with Accounting Standard (AS-12), Grants related to Fixed Assets (depreciable asset) are deducted from gross value of fixed asset. However, when grant equals whole or virtually the whole cost of Fixed Asset, then Fixed Asset is shown at nominal value. Grants towards revenue expenses are recognized over the period in which related costs are incurred and are deducted from the related expenses.

a) Foreign Currency transactions are recorded on initial recognition at the exchange rate prevailing on the date of the transaction. On settlement of transactions, the realized gains and losses on foreign exchange transactions are recognized in the Statement of Profit and Loss.

b) Foreign currency monetary items remaining unsettled at the end of the year are reported at year-end rates. The exchange rate differences arising thereof are recognized in the Statement of Profit & Loss . Non-monetary items which are carried at historical cost denominated in a

9. Grants

10. Foreign Currency Transaction

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED22 23IFFCO KISAN SANCHAR LIMITED

NOTE NO.1 - SIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation of Financial Statements

2. Use of Estimates

3. Fixed Assets

4. Intangible Assets

The Financial Statements have been prepared on accrual basis of accounting under the historical cost convention in accordance with the generally accepted accounting principles in India, and the relevant provisions of Companies Act, 1956 including accounting standards notified there under.

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumptions to be made that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results materialize.

Fixed Assets are stated at historical cost less accumulated depreciation. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

An intangible asset is recognised where it is probable that the future economic benefits attributable to the asset will flow

to the company and the cost of the asset can be measured reliably. Such assets are stated at cost less accumulated amortization.

a) Depreciation on Fixed Assets is provided on straight line method as per rates prescribed under Schedule XIV of the Companies Act, 1956.

b) Assets are depreciated to the extent of 95% of the original cost except assets individually costing up to Rs. 5,000/- which are fully depreciated in the year of acquisition.

c) Addition to assets is depreciated for the full year irrespective of the date of addition and no depreciation is provided on assets sold/discarded during the year.

d) Cost of Computer Software recognized as intangible asset is amortized over a period of legal right or three year whichever is earlier.

At each balance sheet a review is made whether indication exists that asset has been impaired. In case such indication exists, an impairment loss is recognized wherever carrying amount of an asset exceed its recoverable amount. Recoverable amount is higher of the 'net selling price' of the assets and 'value in use'.

5. Depreciation/Amortization

6. Impairment of Assets

7. Inventories

8. Revenue Recognition

Inventories are valued at lower of cost and net realizable value, The cost is determined on First-in-First-out basis.

Revenue is recognised to the extent that it can reliably measured and is probable that the economic benefits will flow to the Company.

a) Sales

Sales are accounted for on the basis of invoices raised by the Company whereby all significant risks and rewards of ownership are transferred to the buyer and the Company retains no effective control of the goods transferred to a degree usually associated with the ownership. Sales are net of rebates and discount.

b) Other Income

(i) Margin and additional margin on 'talk time' are recognised as revenue at the time of purchase of talk time.

(ii) Activation margin is recognised as revenue as and when the Subscriber's SIM (Subscriber Identity Module) is activated and Margin on Prepaid Enrolment Form (PEF) is recognised on acceptance of the same by the Service Provider.

(iii) Insurance Claims and claim against marketing expenses are recognised when no significant uncertainty exists with regards to the amount to be realized and ultimate collection thereof.

In accordance with Accounting Standard (AS-12), Grants related to Fixed Assets (depreciable asset) are deducted from gross value of fixed asset. However, when grant equals whole or virtually the whole cost of Fixed Asset, then Fixed Asset is shown at nominal value. Grants towards revenue expenses are recognized over the period in which related costs are incurred and are deducted from the related expenses.

a) Foreign Currency transactions are recorded on initial recognition at the exchange rate prevailing on the date of the transaction. On settlement of transactions, the realized gains and losses on foreign exchange transactions are recognized in the Statement of Profit and Loss.

b) Foreign currency monetary items remaining unsettled at the end of the year are reported at year-end rates. The exchange rate differences arising thereof are recognized in the Statement of Profit & Loss . Non-monetary items which are carried at historical cost denominated in a

9. Grants

10. Foreign Currency Transaction

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED24 25IFFCO KISAN SANCHAR LIMITED

foreign currency are reported using the exchange rate at the date of the transaction.

a) Short Term Employee Benefits

Short term employee benefits are recognised as expense in the year in which the related services is rendered

b) Post Employment Benefits

(i) Provident Fund

Contribute to Provident fund and family pension scheme is recognized as expenses and is charged to the Statement of Profit and Loss.

(ii) Defined Benefit Plan

Liability for Gratuity is recognized on the basis of actuarial valuation made at the end of the year.

a) Provision for Income Tax is made on the basis of estimated taxable income as per provisions of The Income Tax Act, 1961.

b) Deferred Tax resulting from “timing differences” between taxable income and accounting income is determined by using the tax rates and the tax laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax

11. Employees Benefits

12. Taxation

assets are carried forward to the extent it is reasonably/virtually certain that future taxable profit will be available against which such deferred tax assets can be realized.

a) Provisions are recognised for liabilities that can be measured by using a substantial degree of estimation, if:

(i) The Company has a present obligation as a result of a past event;

(ii) A probable outflow of resources embodying economic benefits is expected to settle the obligation; and

(iii) The amount of the obligation can be reliably estimated

b) Contingent liability is disclosed in case of:

(i) A present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation

(ii) A possible obligation, unless the probability of outflow in settlement is remote

13. Provisions, Contingent Liabilities and Contingent Assets

(iii) Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

c) Contingent assets are neither recognised nor disclosed in the financial statements.

The earnings considered in ascertaining the Company's Earnings per Share ('EPS')

14. Earning Per Share

comprise the net profit/loss after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares

Expenditure up to ` 10,000/- in each case except insurance premium is accounted for in the year in which the same is incurred.

15. Prepaid Expenses

NOTE NO.1 - SIGNIFICANT ACCOUNTING POLICIESContinued

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED24 25IFFCO KISAN SANCHAR LIMITED

foreign currency are reported using the exchange rate at the date of the transaction.

a) Short Term Employee Benefits

Short term employee benefits are recognised as expense in the year in which the related services is rendered

b) Post Employment Benefits

(i) Provident Fund

Contribute to Provident fund and family pension scheme is recognized as expenses and is charged to the Statement of Profit and Loss.

(ii) Defined Benefit Plan

Liability for Gratuity is recognized on the basis of actuarial valuation made at the end of the year.

a) Provision for Income Tax is made on the basis of estimated taxable income as per provisions of The Income Tax Act, 1961.

b) Deferred Tax resulting from “timing differences” between taxable income and accounting income is determined by using the tax rates and the tax laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax

11. Employees Benefits

12. Taxation

assets are carried forward to the extent it is reasonably/virtually certain that future taxable profit will be available against which such deferred tax assets can be realized.

a) Provisions are recognised for liabilities that can be measured by using a substantial degree of estimation, if:

(i) The Company has a present obligation as a result of a past event;

(ii) A probable outflow of resources embodying economic benefits is expected to settle the obligation; and

(iii) The amount of the obligation can be reliably estimated

b) Contingent liability is disclosed in case of:

(i) A present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation

(ii) A possible obligation, unless the probability of outflow in settlement is remote

13. Provisions, Contingent Liabilities and Contingent Assets

(iii) Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

c) Contingent assets are neither recognised nor disclosed in the financial statements.

The earnings considered in ascertaining the Company's Earnings per Share ('EPS')

14. Earning Per Share

comprise the net profit/loss after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares

Expenditure up to ` 10,000/- in each case except insurance premium is accounted for in the year in which the same is incurred.

15. Prepaid Expenses

NOTE NO.1 - SIGNIFICANT ACCOUNTING POLICIESContinued

th5 Annual Report 2011-12

27IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED26

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

As at As at Particulars 31-03-2012 31-03-2011

Current Year 2011-12 Previous Year 2010-11

Name of Shareholder No of Shares Amount No of Shares Amount

Equity Share Capital

Authorised :50,00,000 Shares of Rs. 10 each 50,000,000 50,000,000

Issued,Subscribed and Paid Up :50,00,000 Shares of Rs. 10 each fully paid up 50,000,000 50,000,000

Total 50,000,000 50,000,000

Further Notes:1. Detail of Shareholders holding more than 5% share of the Company

Indian Farmers Fertilizers Cooperative Ltd 3,649,500 36,495,000 3,649,500 36,495,000

Star Global Resources Ltd 1,250,500 12,505,000 1,250,500 12,505,000

Total 4,900,000 49,000,000 4,900,000 49,000,000

2. During the year the company has not issued / bought back any shares3. The holders of shares are entitled to one vote per share at the meetings of the Company and entitled to receive

dividends as declared from time to time.

As at As at Particulars 31-03-2012 31-03-2011

General ReservesAs Per Last Balance Sheet 9,638,498 - Add : Transfer from Surplus 6,068,957 15,707,455 9,638,498 9,638,498

Surplus (Balance in Statement of Profit & Loss)As Per Last Balance Sheet 19,916,657 (87,335,896)Add Profit as per Statement of Profit & Loss 80,919,422 128,513,301 Amount Available for Appropriations 100,836,079 41,177,405 Less : AppropriationsProposed Dividend 10,000,000 10,000,000 Tax on Proposed Dividend 1,622,250 1,622,250 Transfer to General Reserves 6,068,957 83,144,872 9,638,498 19,916,657

98,852,327 29,555,155

During the year company has proposed final dividend @ ` 2 per equity share (Previous Year @ 2 per equity share)`

Amount in `

Amount in `

Note No. 2.1 - Share Capital

Note No. 2.2 - Reserves & Surplus

As at As at Particulars 31-03-2012 31-03-2011

Balance Brought Forward 8,142,099 11,715,851 Add : Amount received during the year from GSM Foundation Inc., USA - 5,594,687 Less : Amount Utilized during the year 4,470,437 9,168,439

Total 3,671,662 8,142,099

As at As at Particulars 31-03-2012 31-03-2011

Security Deposits 10,457,494 12,833,993

10,457,494 12,833,993

As at As at Particulars 31-03-2012 31-03-2011

Employee Benefits 2,721,426 2,713,264

Total 2,721,426 2,713,264

As at As at Particulars 31-03-2012 31-03-2011

CASH CREDIT (From Bank) – 9,945,455 (Secured by Hypothecation of Stocks andBook Debts and first charge on the current assets of the company under a loan agreementwith Indian Overseas Bank)

Total – 9,945,455

Amount in `

Amount in `

Amount in `

Amount in `

Note No. 2.3 - Grant Deferred

Note No. 2.4 - Long Term Liabilities

Note No. 2.5 - Long Term Provisions

Note No. 2.6 - Short Term Borrowings

th5 Annual Report 2011-12

27IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED26

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

As at As at Particulars 31-03-2012 31-03-2011

Current Year 2011-12 Previous Year 2010-11

Name of Shareholder No of Shares Amount No of Shares Amount

Equity Share Capital

Authorised :50,00,000 Shares of Rs. 10 each 50,000,000 50,000,000

Issued,Subscribed and Paid Up :50,00,000 Shares of Rs. 10 each fully paid up 50,000,000 50,000,000

Total 50,000,000 50,000,000

Further Notes:1. Detail of Shareholders holding more than 5% share of the Company

Indian Farmers Fertilizers Cooperative Ltd 3,649,500 36,495,000 3,649,500 36,495,000

Star Global Resources Ltd 1,250,500 12,505,000 1,250,500 12,505,000

Total 4,900,000 49,000,000 4,900,000 49,000,000

2. During the year the company has not issued / bought back any shares3. The holders of shares are entitled to one vote per share at the meetings of the Company and entitled to receive

dividends as declared from time to time.

As at As at Particulars 31-03-2012 31-03-2011

General ReservesAs Per Last Balance Sheet 9,638,498 - Add : Transfer from Surplus 6,068,957 15,707,455 9,638,498 9,638,498

Surplus (Balance in Statement of Profit & Loss)As Per Last Balance Sheet 19,916,657 (87,335,896)Add Profit as per Statement of Profit & Loss 80,919,422 128,513,301 Amount Available for Appropriations 100,836,079 41,177,405 Less : AppropriationsProposed Dividend 10,000,000 10,000,000 Tax on Proposed Dividend 1,622,250 1,622,250 Transfer to General Reserves 6,068,957 83,144,872 9,638,498 19,916,657

98,852,327 29,555,155

During the year company has proposed final dividend @ ` 2 per equity share (Previous Year @ 2 per equity share)`

Amount in `

Amount in `

Note No. 2.1 - Share Capital

Note No. 2.2 - Reserves & Surplus

As at As at Particulars 31-03-2012 31-03-2011

Balance Brought Forward 8,142,099 11,715,851 Add : Amount received during the year from GSM Foundation Inc., USA - 5,594,687 Less : Amount Utilized during the year 4,470,437 9,168,439

Total 3,671,662 8,142,099

As at As at Particulars 31-03-2012 31-03-2011

Security Deposits 10,457,494 12,833,993

10,457,494 12,833,993

As at As at Particulars 31-03-2012 31-03-2011

Employee Benefits 2,721,426 2,713,264

Total 2,721,426 2,713,264

As at As at Particulars 31-03-2012 31-03-2011

CASH CREDIT (From Bank) – 9,945,455 (Secured by Hypothecation of Stocks andBook Debts and first charge on the current assets of the company under a loan agreementwith Indian Overseas Bank)

Total – 9,945,455

Amount in `

Amount in `

Amount in `

Amount in `

Note No. 2.3 - Grant Deferred

Note No. 2.4 - Long Term Liabilities

Note No. 2.5 - Long Term Provisions

Note No. 2.6 - Short Term Borrowings

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED28 29IFFCO KISAN SANCHAR LIMITED

As at As at Particulars 31-03-2012 31-03-2011

Advances from Customers 4,569,501 10,106,709 Other Payables(a) Statutory Dues 2,012,869 2,311,994 (b) Expenses Payable 20,470,061 22,616,487 (c) Others 15,735,997 37,149,835

Total 42,788,428 72,185,025

As at As at Particulars 31-03-2012 31-03-2011

Proposed Dividend 10,000,000 10,000,000 Tax on Proposed Dividend 1,622,250 1,622,250

Total 11,622,250 11,622,250

Amount in `

Amount in `

Note No. 2.7 - Other Current LiabilitiesContinued

Note No. 2.8 - Short Term Provisions

Amou

nt in

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31.0

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NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED28 29IFFCO KISAN SANCHAR LIMITED

As at As at Particulars 31-03-2012 31-03-2011

Advances from Customers 4,569,501 10,106,709 Other Payables(a) Statutory Dues 2,012,869 2,311,994 (b) Expenses Payable 20,470,061 22,616,487 (c) Others 15,735,997 37,149,835

Total 42,788,428 72,185,025

As at As at Particulars 31-03-2012 31-03-2011

Proposed Dividend 10,000,000 10,000,000 Tax on Proposed Dividend 1,622,250 1,622,250

Total 11,622,250 11,622,250

Amount in `

Amount in `

Note No. 2.7 - Other Current LiabilitiesContinued

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NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12

31IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED30

As at As at Particulars 31-03-2012 31-03-2011

Deferred Tax Liability (A) Depreciation 1,133,996 1,236,501

Deferred Tax Assets (B)Provision for Doubtful Debts 3,893,400 5,710,320 Provision for Gratuity 882,966 880,318 Preliminary Expenses Written Off - 23,231

Total 4,776,366 6,613,869

Net Deferred Tax Asset (B-A) 3,642,370 5,377,368

Net decrease in net deferred assets amounting to 17,34,998/- (previous year 3,43,98,524/-) has been shown as charge for the current year.

` `

As at As at Particulars 31-03-2012 31-03-2011

Advances & Other Amounts RecoverableSecurity Deposits 1,095,264 735,214

Total 1,095,264 735,214

As at As at Particulars 31-03-2012 31-03-2011

(As taken, valued and certified by the Management)

Stock in Trade (SIM's/ Talktime) 26,843,469 19,015,278

Total 26,843,469 19,015,278

Note : Inventories includes 14,77,511 ( last year 22,99,646) received from Airtel on the behalf of the distributors for payouts. ` `

Amount in `

Amount in `

Amount in `

Note No. 2.10 - Deferred Tax Assets (Net)Continued

Note No. 2.11 - Long Term Loans & Advances (Unsecured considered good)

Note No. 2.12 - Inventories (For Valuation refer Note No.1 Accounting Policies)( No.7)

As at As at Particulars 31-03-2012 31-03-2011

a) Debts outstanding for a period exceeding six monthsI) Considered Good - - ii) Considered Doubtful 12,000,000 17,600,000

b) Other Debts 652,562 3,513,874

12,652,562 21,113,874 Less : Provision for Doubtful Debts 12,000,000 17,600,000

Total 652,562 3,513,874

As at As at Particulars 31-03-2012 31-03-2011

1) Cash and Cash EquivalentsBalances with Banks In Current Account 38,727,715 13,200,906 Cash in Hand 65,924 1,099,420

2) Other Bank BalancesIn Term Deposits having maturity over 3 months 65,000,000 -

Total 103,793,639 14,300,326

As at As at Particulars 31-03-2012 31-03-2011

Advances & Other Amount RecoverableAdvance Tax / TDS (Net of Provisions) 1,964,241 7,912,288 MAT Credit Entitlement - 4,200,000 VAT Recoverable 926,995 933,979 Amount Recoverable from Airtel 73,077,005 126,727,887 Others 1,336,162 7,736,449

Total 77,304,403 147,510,603

Amount in `

Amount in `

Amount in `

Note No. 2.13 - Trade Receivable(Unsecured considered good unless otherwise stated)

Note No. 2.15 - Short Term Loans & Advances (Unsecured considered good)

Note No. 2.14 - Cash and Bank Balances

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12

31IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED30

As at As at Particulars 31-03-2012 31-03-2011

Deferred Tax Liability (A) Depreciation 1,133,996 1,236,501

Deferred Tax Assets (B)Provision for Doubtful Debts 3,893,400 5,710,320 Provision for Gratuity 882,966 880,318 Preliminary Expenses Written Off - 23,231

Total 4,776,366 6,613,869

Net Deferred Tax Asset (B-A) 3,642,370 5,377,368

Net decrease in net deferred assets amounting to 17,34,998/- (previous year 3,43,98,524/-) has been shown as charge for the current year.

` `

As at As at Particulars 31-03-2012 31-03-2011

Advances & Other Amounts RecoverableSecurity Deposits 1,095,264 735,214

Total 1,095,264 735,214

As at As at Particulars 31-03-2012 31-03-2011

(As taken, valued and certified by the Management)

Stock in Trade (SIM's/ Talktime) 26,843,469 19,015,278

Total 26,843,469 19,015,278

Note : Inventories includes 14,77,511 ( last year 22,99,646) received from Airtel on the behalf of the distributors for payouts. ` `

Amount in `

Amount in `

Amount in `

Note No. 2.10 - Deferred Tax Assets (Net)Continued

Note No. 2.11 - Long Term Loans & Advances (Unsecured considered good)

Note No. 2.12 - Inventories (For Valuation refer Note No.1 Accounting Policies)( No.7)

As at As at Particulars 31-03-2012 31-03-2011

a) Debts outstanding for a period exceeding six monthsI) Considered Good - - ii) Considered Doubtful 12,000,000 17,600,000

b) Other Debts 652,562 3,513,874

12,652,562 21,113,874 Less : Provision for Doubtful Debts 12,000,000 17,600,000

Total 652,562 3,513,874

As at As at Particulars 31-03-2012 31-03-2011

1) Cash and Cash EquivalentsBalances with Banks In Current Account 38,727,715 13,200,906 Cash in Hand 65,924 1,099,420

2) Other Bank BalancesIn Term Deposits having maturity over 3 months 65,000,000 -

Total 103,793,639 14,300,326

As at As at Particulars 31-03-2012 31-03-2011

Advances & Other Amount RecoverableAdvance Tax / TDS (Net of Provisions) 1,964,241 7,912,288 MAT Credit Entitlement - 4,200,000 VAT Recoverable 926,995 933,979 Amount Recoverable from Airtel 73,077,005 126,727,887 Others 1,336,162 7,736,449

Total 77,304,403 147,510,603

Amount in `

Amount in `

Amount in `

Note No. 2.13 - Trade Receivable(Unsecured considered good unless otherwise stated)

Note No. 2.15 - Short Term Loans & Advances (Unsecured considered good)

Note No. 2.14 - Cash and Bank Balances

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED32 33IFFCO KISAN SANCHAR LIMITED

As at As at Particulars 31-03-2012 31-03-2011

Accrued Interest 2,645,458 -

Total 2,645,458 -

Particulars 31-03-2012 31-03-2011Year Ended Year Ended

Interest Income 2,939,400 - Recovery against Bad Debts written off 968,915 1,403,983 Provisions no longer required written backa) Doubtful debts (net of amount utilized against

bad debts written off ` 4543310 Previous year `1,51,51,135) 1,056,690 6,248,865 b) Dimunition in the value of stocks - 3,850,000 Miscellaneous Income 3,754,734 3,627,147

Total 8,719,739 15,129,995

Amount in `

Amount in `

Note No. 2.16 - Other Current Assets

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Talktime/ SIMs 1,544,436,556 1,402,196,556

Total 1,544,436,556 1,402,196,556

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Traded GoodsOpening Stock 16,715,633 36,267,877 Less : Closing Stock 25,365,958 16,715,632

Net (Accretion)/ Decretion (8,650,325) 19,552,245

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

1) Salaries and Wages 64,834,066 59,940,933 2) Contribution to Provident and Other Funds 2,633,772 2,750,966 3) Staff Welfare Expenses 1,202,643 1,592,521

Total 68,670,481 64,284,420

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Interest Expense 105,234 4,242,011

Total 105,234 4,242,011

Amount in `

Amount in `

Amount in `

Amount in `

Note No. 2.19 - Purchase of Stock in Trade

Note No. 2.20 - Changes in Inventories of Stock in Trade

Note No. 2.21 - Employee Benefits Expense

Note No. 2.22 - Finance Costs

Note No. 2.18 - Other Income

Continued

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

A ) SALE OF TRADING GOODS 1,536,678,945 1,423,875,604

B) OTHER OPERATING REVENUEActivation Margin 209,122,487 448,795,780 Less:Clawback 32,546,965 176,575,522 100,137,830 348,657,950 Addtitional Margin on Talktime 117,727,079 97,561,243 Claim for Marketing/Service Expenses 7,619,579 6,150,584 Service Charges Received 39,429 221,625 Income from Community Activation 434,981

Total 1,839,075,535 1,876,467,006

Breakup of sales

Mobile Phones - 1,796,673 Taltime/SIM 1,536,678,945 1,407,847,777 Freeplay Product - 14,231,154

Total 1,536,678,945 1,423,875,604

Amount in `Note No. 2.17 - Revenue from Operations

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED32 33IFFCO KISAN SANCHAR LIMITED

As at As at Particulars 31-03-2012 31-03-2011

Accrued Interest 2,645,458 -

Total 2,645,458 -

Particulars 31-03-2012 31-03-2011Year Ended Year Ended

Interest Income 2,939,400 - Recovery against Bad Debts written off 968,915 1,403,983 Provisions no longer required written backa) Doubtful debts (net of amount utilized against

bad debts written off ` 4543310 Previous year `1,51,51,135) 1,056,690 6,248,865 b) Dimunition in the value of stocks - 3,850,000 Miscellaneous Income 3,754,734 3,627,147

Total 8,719,739 15,129,995

Amount in `

Amount in `

Note No. 2.16 - Other Current Assets

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Talktime/ SIMs 1,544,436,556 1,402,196,556

Total 1,544,436,556 1,402,196,556

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Traded GoodsOpening Stock 16,715,633 36,267,877 Less : Closing Stock 25,365,958 16,715,632

Net (Accretion)/ Decretion (8,650,325) 19,552,245

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

1) Salaries and Wages 64,834,066 59,940,933 2) Contribution to Provident and Other Funds 2,633,772 2,750,966 3) Staff Welfare Expenses 1,202,643 1,592,521

Total 68,670,481 64,284,420

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Interest Expense 105,234 4,242,011

Total 105,234 4,242,011

Amount in `

Amount in `

Amount in `

Amount in `

Note No. 2.19 - Purchase of Stock in Trade

Note No. 2.20 - Changes in Inventories of Stock in Trade

Note No. 2.21 - Employee Benefits Expense

Note No. 2.22 - Finance Costs

Note No. 2.18 - Other Income

Continued

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

A ) SALE OF TRADING GOODS 1,536,678,945 1,423,875,604

B) OTHER OPERATING REVENUEActivation Margin 209,122,487 448,795,780 Less:Clawback 32,546,965 176,575,522 100,137,830 348,657,950 Addtitional Margin on Talktime 117,727,079 97,561,243 Claim for Marketing/Service Expenses 7,619,579 6,150,584 Service Charges Received 39,429 221,625 Income from Community Activation 434,981

Total 1,839,075,535 1,876,467,006

Breakup of sales

Mobile Phones - 1,796,673 Taltime/SIM 1,536,678,945 1,407,847,777 Freeplay Product - 14,231,154

Total 1,536,678,945 1,423,875,604

Amount in `Note No. 2.17 - Revenue from Operations

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12

35IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED34

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Rent 4,128,002 3,900,498 Rates & Taxes 203,326 441,204 Electricity and Water Charges 666,744 627,897 Printing & Stationery 1,083,809 1,583,259 Communication Expenses 4,234,339 6,033,653 Travelling & Conveyance 18,017,817 17,464,940 Legal & Professional Fees 2,056,425 3,427,775 Insurance Expenses 472,606 689,465 Repairs & Maintenance 3,569,331 3,156,130 Expenses on Content Management 6,403,198 4,043,355 Transportation/Warehousing Expenses 1,849,584 3,268,266 Advertisement and Sales Promotion 1,142,785 1,716,263 Commission to Marketing Associates 37,261,587 64,160,752 Rebate & Discounts 27,153,730 77,537,147 Bank Charges 2,462,331 839,685 Payments to Auditor : Statutory Audit 224,720 220,600 : Tax Audit 56,180 55,150 Quality Activation Expenses 2,057,477 - Market Research Expenses 1,528,096 - Service Expenses 105,879 1,643,696 Fixed Assets Written Off 21,223 144,993 Loss on Disposal of Fixed Assets 13,781 - Miscellaneous Expenses 4,971,283 4,287,086

Total 119,684,253 195,241,814

Amount in `Note No. 2.23 - Other ExpensesContinued

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

PRIOR PERIOD INOME:Activation Margin (Clawback) - (10,506,676)Service Charges Received - - (2,037,500) (12,544,176)

PRIOR PERIOD EXPENDITURE:Sales Promotion, Travelling - 87,840 Incentive to MA's - (706,086)Misscellanous Expenses - (319,613)Travelling Expenses - - (281,065) (1,218,923)

Net Prior Period Charge - (11,325,253)

Amount in `Note No. 2.24 - Prior Period Adjustment (Net)

NOTE NO. 2.25 -OTHER NOTES

I. Contingent liabilities: Current Year Previous yearClaims against the company not 4, 43,770 2, 60,438acknowledged as debts

II. Employee Benefits:

The company has calculated the various benefits provided to employees as under:

a) Defined Contribution Plans

The company makes contributions at a specified percentage of payroll cost towards Employee Provident Fund (EPF) for the qualifying employees.

The company has recognized ` 26,33,772 (Previous year 27,50,966) for provident fund contribution in the Statement of Profit & Loss.

b) Defined Benefit Plans

In accordance with Accounting Standard 15 (Revised), an actuarial valuation was carried out in respect of the gratuity liability based on the following assumptions.

Discount Rate ( Per Annum) 8.50% 8.00%

Rate of Increase in compensation level* 7.00% 7.00%

* Considered taking into account inflation, seniority, promotion and other relevant factors.

Summarized position of employee benefits to be recognized in Balance Sheet and Statement of Profit & Loss as required in accordance with Accounting Standard 15 (Revised) are as under:

1) Change in Present Value of Obligation Amount in `

Projected Benefit obligation at beginning of year 27,13,264 21,24,017

Current Service Cost 9,61,697 12,24,636

Interest Cost 2,31,259 1,41,808

Actuarial Loss / (Gain) due to change in assumptions (11,84,794) (7,77,197)

Projected Benefit Obligation at End of year 27,21,426 27,13,264

`

Particulars Gratuity2011-12 2010-11

Particulars Gratuity (UnFunded)2011-12 2010-11

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12 th5 Annual Report 2011-12

35IFFCO KISAN SANCHAR LIMITEDIFFCO KISAN SANCHAR LIMITED34

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

Rent 4,128,002 3,900,498 Rates & Taxes 203,326 441,204 Electricity and Water Charges 666,744 627,897 Printing & Stationery 1,083,809 1,583,259 Communication Expenses 4,234,339 6,033,653 Travelling & Conveyance 18,017,817 17,464,940 Legal & Professional Fees 2,056,425 3,427,775 Insurance Expenses 472,606 689,465 Repairs & Maintenance 3,569,331 3,156,130 Expenses on Content Management 6,403,198 4,043,355 Transportation/Warehousing Expenses 1,849,584 3,268,266 Advertisement and Sales Promotion 1,142,785 1,716,263 Commission to Marketing Associates 37,261,587 64,160,752 Rebate & Discounts 27,153,730 77,537,147 Bank Charges 2,462,331 839,685 Payments to Auditor : Statutory Audit 224,720 220,600 : Tax Audit 56,180 55,150 Quality Activation Expenses 2,057,477 - Market Research Expenses 1,528,096 - Service Expenses 105,879 1,643,696 Fixed Assets Written Off 21,223 144,993 Loss on Disposal of Fixed Assets 13,781 - Miscellaneous Expenses 4,971,283 4,287,086

Total 119,684,253 195,241,814

Amount in `Note No. 2.23 - Other ExpensesContinued

Year Ended Particulars 31-03-2012 31-03-2011

Year Ended

PRIOR PERIOD INOME:Activation Margin (Clawback) - (10,506,676)Service Charges Received - - (2,037,500) (12,544,176)

PRIOR PERIOD EXPENDITURE:Sales Promotion, Travelling - 87,840 Incentive to MA's - (706,086)Misscellanous Expenses - (319,613)Travelling Expenses - - (281,065) (1,218,923)

Net Prior Period Charge - (11,325,253)

Amount in `Note No. 2.24 - Prior Period Adjustment (Net)

NOTE NO. 2.25 -OTHER NOTES

I. Contingent liabilities: Current Year Previous yearClaims against the company not 4, 43,770 2, 60,438acknowledged as debts

II. Employee Benefits:

The company has calculated the various benefits provided to employees as under:

a) Defined Contribution Plans

The company makes contributions at a specified percentage of payroll cost towards Employee Provident Fund (EPF) for the qualifying employees.

The company has recognized ` 26,33,772 (Previous year 27,50,966) for provident fund contribution in the Statement of Profit & Loss.

b) Defined Benefit Plans

In accordance with Accounting Standard 15 (Revised), an actuarial valuation was carried out in respect of the gratuity liability based on the following assumptions.

Discount Rate ( Per Annum) 8.50% 8.00%

Rate of Increase in compensation level* 7.00% 7.00%

* Considered taking into account inflation, seniority, promotion and other relevant factors.

Summarized position of employee benefits to be recognized in Balance Sheet and Statement of Profit & Loss as required in accordance with Accounting Standard 15 (Revised) are as under:

1) Change in Present Value of Obligation Amount in `

Projected Benefit obligation at beginning of year 27,13,264 21,24,017

Current Service Cost 9,61,697 12,24,636

Interest Cost 2,31,259 1,41,808

Actuarial Loss / (Gain) due to change in assumptions (11,84,794) (7,77,197)

Projected Benefit Obligation at End of year 27,21,426 27,13,264

`

Particulars Gratuity2011-12 2010-11

Particulars Gratuity (UnFunded)2011-12 2010-11

NOTES FORMING PART OF THEFINANCIAL STATEMENTS

th5 Annual Report 2011-12 th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED36 37IFFCO KISAN SANCHAR LIMITED

2) Amount to be recognized in the Balance sheet Amount in `

Projected Benefit Obligation at End of the year 27,21,426 27,13,264

Ending Assets - -

Net Liability recognized in the Balance sheet 27,21,426 27,13,264

3) Expenses recognized in the Statement of Profit and Loss Amount in `

Current Service Cost 9,61,697 12,24,636

Interest Cost 2,31,259 1,41,808

Expected Return on Plan Asset - -

Net actuarial (gain)/loss to be recognized in year (11,84,794) (7,77,197)

Income (-)/ Expenses (+) recognized in the 8,162 5,89,247statement of Profit & Loss

III. Related Party Disclosures: Related party disclosure as per the Accounting Standard-18 on "Related Party Disclosures" are provided as below:

Related Parties

A. Holding Enterprise Indian Farmers Fertilizer Cooperative Limited (IFFCO)

B. Fellow Subsidiary IFFCO - Tokio General Insurance Company Limited (ITGI)

C. Key Managerial Personnel S. Srinivasan (Chief Executive Officer)

Details of transactions with related parties Amount in ̀

Repayment of loan IFFCO - 17,52,05,904Expenses Incurred on behalf of the Company IFFCO 1,02,01,113 74,16,393Amount Payable IFFCO 12,96,744 13,34,585Payment for Insurance Premium ITGI 4,33,691 8,40,903Claim Received ITGI 2,40,523 10,00,000Deposit for Premium ITGI 18,406 18,406Remuneration to Key Management personnel S.Srinivasan 28,05,382 27,65,467

(CEO)

Particulars Gratuity (Un Funded)2011-12 2010-11

Particulars Gratuity (Un Funded)2011-12 2010-11

Nature of Transaction Related Year Ended Year EndedParty 31.3.2012 31.3.2011

iv. Earnings per Share

Earnings per share (EPS) has been computed in accordance with Accounting Standard 20 on "Earnings Per Share" by dividing Net Profit for the year attributable to equity shareholders by the weighted average number of shares outstanding for the year as under:

Amount in `

Net Profit for the year attributable to Equity share holders 8,09,19,422 12,85,13,301

Weighted average No. of shares (Nos.) 50,00,000 50,00,000

Nominal Value per Share 10 10

Basic and Diluted EPS 16.18 25.70(10.94)

v. Impairment of Assets:

In accordance with the Accounting Standard (AS-28) on "Impairment of Assets", the Company has assessed as on the Balance Sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of account.

vi. Transactions with Micro, Small and Medium Enterprises:

1. Principal amount due and remaining unpaid to any Supplier as at end of Accounting Year. - -

2. Interest due on Principal amount remaining unpaid as at the end of Accounting Year. - -

3. Amount of Interest along with Principal Amount paid to Supplier beyond due date of payment. - -

4. Amount of Interest accrued/due and remaining Unpaid at the end of Accounting Year - -

The above information has been provided to the extent such parties have been identified on the basis of information available with the company.

Particulars Year Ended Year Ended31.3.2012 31.3.2011

Particulars Year Ended Year Ended31.03.2012 31.03.2011

Continued

NOTE NO. 2.25 -OTHER NOTES

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED36 37IFFCO KISAN SANCHAR LIMITED

2) Amount to be recognized in the Balance sheet Amount in `

Projected Benefit Obligation at End of the year 27,21,426 27,13,264

Ending Assets - -

Net Liability recognized in the Balance sheet 27,21,426 27,13,264

3) Expenses recognized in the Statement of Profit and Loss Amount in `

Current Service Cost 9,61,697 12,24,636

Interest Cost 2,31,259 1,41,808

Expected Return on Plan Asset - -

Net actuarial (gain)/loss to be recognized in year (11,84,794) (7,77,197)

Income (-)/ Expenses (+) recognized in the 8,162 5,89,247statement of Profit & Loss

III. Related Party Disclosures: Related party disclosure as per the Accounting Standard-18 on "Related Party Disclosures" are provided as below:

Related Parties

A. Holding Enterprise Indian Farmers Fertilizer Cooperative Limited (IFFCO)

B. Fellow Subsidiary IFFCO - Tokio General Insurance Company Limited (ITGI)

C. Key Managerial Personnel S. Srinivasan (Chief Executive Officer)

Details of transactions with related parties Amount in ̀

Repayment of loan IFFCO - 17,52,05,904Expenses Incurred on behalf of the Company IFFCO 1,02,01,113 74,16,393Amount Payable IFFCO 12,96,744 13,34,585Payment for Insurance Premium ITGI 4,33,691 8,40,903Claim Received ITGI 2,40,523 10,00,000Deposit for Premium ITGI 18,406 18,406Remuneration to Key Management personnel S.Srinivasan 28,05,382 27,65,467

(CEO)

Particulars Gratuity (Un Funded)2011-12 2010-11

Particulars Gratuity (Un Funded)2011-12 2010-11

Nature of Transaction Related Year Ended Year EndedParty 31.3.2012 31.3.2011

iv. Earnings per Share

Earnings per share (EPS) has been computed in accordance with Accounting Standard 20 on "Earnings Per Share" by dividing Net Profit for the year attributable to equity shareholders by the weighted average number of shares outstanding for the year as under:

Amount in `

Net Profit for the year attributable to Equity share holders 8,09,19,422 12,85,13,301

Weighted average No. of shares (Nos.) 50,00,000 50,00,000

Nominal Value per Share 10 10

Basic and Diluted EPS 16.18 25.70(10.94)

v. Impairment of Assets:

In accordance with the Accounting Standard (AS-28) on "Impairment of Assets", the Company has assessed as on the Balance Sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of account.

vi. Transactions with Micro, Small and Medium Enterprises:

1. Principal amount due and remaining unpaid to any Supplier as at end of Accounting Year. - -

2. Interest due on Principal amount remaining unpaid as at the end of Accounting Year. - -

3. Amount of Interest along with Principal Amount paid to Supplier beyond due date of payment. - -

4. Amount of Interest accrued/due and remaining Unpaid at the end of Accounting Year - -

The above information has been provided to the extent such parties have been identified on the basis of information available with the company.

Particulars Year Ended Year Ended31.3.2012 31.3.2011

Particulars Year Ended Year Ended31.03.2012 31.03.2011

Continued

NOTE NO. 2.25 -OTHER NOTES

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED38

vii. Expenditure in Foreign Currency

Travelling Expenses 4, 57,453 1, 16,186

viii. Segment Reporting

Company is engaged in the business of trading of telecommunication products, which is considered to be the only reportable business segment as per "Accounting Standard 17" on 'Segment Reporting'. The Company is Operating only in India and there is no geographical segment.

ix. Operating Leases

The Company's significant leasing arrangements are in respect of Operating leases of offices. There leasing arrangement are usually renewable on mutually agreed terms but are not non cancellable. Lease payments are shown as rent expenses in note no. 2.23.

x. In the opinion of the management, the value of any of the assets other than fixed assets and non-current investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

xi. Previous year figures have been regrouped wherever considered necessary to correspond with the current year figures.

(Amount in `)

Year ended Year ended31.3.2012 31.3.2011

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

Continued

NOTE NO. 2.25 -OTHER NOTES

th5 Annual Report 2011-12

INDIVIDUALSUCCESS STORIES

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED38

vii. Expenditure in Foreign Currency

Travelling Expenses 4, 57,453 1, 16,186

viii. Segment Reporting

Company is engaged in the business of trading of telecommunication products, which is considered to be the only reportable business segment as per "Accounting Standard 17" on 'Segment Reporting'. The Company is Operating only in India and there is no geographical segment.

ix. Operating Leases

The Company's significant leasing arrangements are in respect of Operating leases of offices. There leasing arrangement are usually renewable on mutually agreed terms but are not non cancellable. Lease payments are shown as rent expenses in note no. 2.23.

x. In the opinion of the management, the value of any of the assets other than fixed assets and non-current investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

xi. Previous year figures have been regrouped wherever considered necessary to correspond with the current year figures.

(Amount in `)

Year ended Year ended31.3.2012 31.3.2011

As per our report of even date For and on behalf of the Board of DirectorsFor S.K. Mehta & Company

Chartered Accountants

(Ranjan Sharma) (Rakesh Kapur)Director Director

(Rohit Mehta) (Shivani Gairola Pokhriyal) (S.Srinivasan) Partner Company Secretary Chief Executive Officer

M. No. 091382

Place: New DelhithDated: 25 June 2012

Continued

NOTE NO. 2.25 -OTHER NOTES

th5 Annual Report 2011-12

INDIVIDUALSUCCESS STORIES

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED40 41IFFCO KISAN SANCHAR LIMITED

INDIVIDUALSUCCESS STORIES

th5 Annual Report 2011-12

Farmer's Name : RENUKA

Village : RamdurgaDistrict : Belgaum

State : KarnatakaMobile : 9740061225

Mrs. Renuka had planted Sugarcane crops on her 1.2 ha farm. The tip portion of the plants started showing drying symptoms. She called IKSL's Helpline to ascertain an economical and easily implementable way of preventing the loss of her crops as well as increasing the yield of sugarcane. She also informed that during the previous season she had spent ` 15,000/- on controlling the borer but the same was not effective.

She was suggested to destroy the infected plants from the field and then spray Chloropyriphos @ 2ml/litre of water.

The expenditure towards plant protection reduced by ` 7,000 against ` 15,000. Additional income from increased Sugarcane yield post application of measures suggested by IKSL was ` 86, 400. Thus the total gain to the farmer was ` (86, 400+7,000)= ` 93, 400.

Problem

Solution

Benefit

fdlku dk uke % gde flag vkUtuk

xkao % vdklkSnk

ftyk % mTtSu

jkT; % e/; izns'k

eksckby % 9968533633

leL;k

fdlku dh HkSal cPps ds tuus ds le; dkQh ijs'kku FkhA HkSal dh gkyr ns[kdj vklikl ds yksxksa us crk;k fd HkSal ds isV esa cPpk mYVk gSA HkSal vkSj cPpk nksuksa dks lqjf{kr cpkuk FkkA vklikl dksbZ i'kq fpfdRlky; u gksus ds dkj.k fdlku i'kq dks dgha ysdj Hkh ugha tk ldrk FkkA

lek/kku

fdlku us bQdks fdlku lapkj ds gsYiykbu ua- ij Qksu djds MkDVj lkgc ls bl leL;k dks crk;kA MkDVj lkgc ds crk;s vuqlkj mipkj

fd;kA ftl dkj.k lqjf{kr izlo gqvk] cPpk vkSj HkSal nksuksa LoLFk gSaA

ykHk

fdlku HkSal o cPpk nksuksa dks cpk ldkA HkSal us vkSlr 5 yh- nw/k izfrfnu fn;k o cPps dh dher vyx lsA

Farmer's Name : NITISH KUMAR

Village : Darveshpura

District : Nalanda

State : Bihar

Mobile : 7250914456

Productivity of Potato.

The farmer used IKSL voice messages and Helpline continuously for guidance. He applied advisories in various aspects of cultivation of potato crop using recommended variety of seeds and also adopted the suggested nutrient management practices.

Problem

Solution

Cost incurred

Benefit

Potato seeds : ` 16,000 per acre

Cost of vermicompost,poultry manures andfertilizers : ` 6,680 per acreCost of bio-fertilizer : ` 3,500

Labour charge : ` 6,750Total cost : ` 32,930

He obtained 72.9 tonnes/ha of productivity of potato and a gross income of ` 3,79,080.

IFFCO KISAN SANCHAR LIMITED40 41IFFCO KISAN SANCHAR LIMITED

INDIVIDUALSUCCESS STORIES

th5 Annual Report 2011-12

Farmer's Name : RENUKA

Village : RamdurgaDistrict : Belgaum

State : KarnatakaMobile : 9740061225

Mrs. Renuka had planted Sugarcane crops on her 1.2 ha farm. The tip portion of the plants started showing drying symptoms. She called IKSL's Helpline to ascertain an economical and easily implementable way of preventing the loss of her crops as well as increasing the yield of sugarcane. She also informed that during the previous season she had spent ` 15,000/- on controlling the borer but the same was not effective.

She was suggested to destroy the infected plants from the field and then spray Chloropyriphos @ 2ml/litre of water.

The expenditure towards plant protection reduced by ` 7,000 against ` 15,000. Additional income from increased Sugarcane yield post application of measures suggested by IKSL was ` 86, 400. Thus the total gain to the farmer was ` (86, 400+7,000)= ` 93, 400.

Problem

Solution

Benefit

fdlku dk uke % gde flag vkUtuk

xkao % vdklkSnk

ftyk % mTtSu

jkT; % e/; izns'k

eksckby % 9968533633

leL;k

fdlku dh HkSal cPps ds tuus ds le; dkQh ijs'kku FkhA HkSal dh gkyr ns[kdj vklikl ds yksxksa us crk;k fd HkSal ds isV esa cPpk mYVk gSA HkSal vkSj cPpk nksuksa dks lqjf{kr cpkuk FkkA vklikl dksbZ i'kq fpfdRlky; u gksus ds dkj.k fdlku i'kq dks dgha ysdj Hkh ugha tk ldrk FkkA

lek/kku

fdlku us bQdks fdlku lapkj ds gsYiykbu ua- ij Qksu djds MkDVj lkgc ls bl leL;k dks crk;kA MkDVj lkgc ds crk;s vuqlkj mipkj

fd;kA ftl dkj.k lqjf{kr izlo gqvk] cPpk vkSj HkSal nksuksa LoLFk gSaA

ykHk

fdlku HkSal o cPpk nksuksa dks cpk ldkA HkSal us vkSlr 5 yh- nw/k izfrfnu fn;k o cPps dh dher vyx lsA

Farmer's Name : NITISH KUMAR

Village : Darveshpura

District : Nalanda

State : Bihar

Mobile : 7250914456

Productivity of Potato.

The farmer used IKSL voice messages and Helpline continuously for guidance. He applied advisories in various aspects of cultivation of potato crop using recommended variety of seeds and also adopted the suggested nutrient management practices.

Problem

Solution

Cost incurred

Benefit

Potato seeds : ` 16,000 per acre

Cost of vermicompost,poultry manures andfertilizers : ` 6,680 per acreCost of bio-fertilizer : ` 3,500

Labour charge : ` 6,750Total cost : ` 32,930

He obtained 72.9 tonnes/ha of productivity of potato and a gross income of ` 3,79,080.

43IFFCO KISAN SANCHAR LIMITED42 IFFCO KISAN SANCHAR LIMITED

INDIVIDUALSUCCESS STORIESContinued

th5 Annual Report 2011-12

Farmer's Name : PRASHANT SARDE

Village : Sardewadi

District : Pune

State : Maharashtra

Mobile : 9860192397

Mr. Sarde had received a weather alert voice message about the impending hail storms in Grape growing regions in Maharashtra. He called IKSL's Helpline to suggest him a cheap and effective way of protecting his vineyards from hail storms at harvesting stage.

Immediate erection of shade nets on vineyards was suggested for protection against hail storms during the harvesting period.

Shade net ` 48,000

Labour cost ` 1,500

Total ` 49,500

Due to prompt action of safeguarding the vineyards, he saved his berries at the harvesting stage. After harvesting he earned a total income of ` 7, 02,000. Increase in net income = ` (7, 02,000- 49,500) = ` 6, 52,500. In the absence of this cover, the farmer would have lost his entire Grape crop as a severe hail storm lashed the area as expected.

Problem

Solution

Cost incurred

Benefit

Farmer's Name : SK. MAHUBAR RAHAMAN

Village : Dinhata

District : Cooch Behar

State : West Bengal

Mobile : 8116125448

Fruits of banana are small in size and not ripening properly. The small and uneven ripen fruits have less market value.

Apply the mixture of the micronutrients; spray Trassel - 2 @ 5 gm per litre of water on a bright sunny day. The second spray should be done after 10 days of first spray.

Total 300 plants with better quality fruits were sold for 30,000/-. If the fruits were small in size then the price of the whole fruits was 20,000/-. After spraying of the micro-nutrient mixture the farmer earned extra (30,000 - 20,000/-) = 10,000 from his 0.13 ha of banana garden.

Problem

Solution

Benefit

`

`

` `

Farmer's Name : RAJ KUMAR

Village : Baldoh

District : Una

State : Himachal Pradesh

Mobile : 9805233444

Fruit cracking in capsicum crop.

Problem

Farmer's Name : KHEM CHAND

Village : Suriyas

District : Nagaur

State : Rajasthan

Mobile : 9001394611

Farmer wanted to know about mandi price of green gram.

According to NCDEX green gram price may increase after 30 days. So, you should wait for a month.

When asked green gram price was 3200/quintal. After one month, price increased to 3900/quintal. Increase in price 700/quintal. Farmer had 30 quintals green gram. Total gain was = 30 x 700 =

21000/-.

Problem

Solution

Benefit`

`

`

`

`

Solution

Benefit

Fruit cracking normally occurs due to deficiency of either micro-nutrient (viz., Ca, B) or water. Since, water supply was adequate, therefore it was advised to spray crop with Biozyme. Cost incurred for recommendation Biozyme = 500, Labour charge = 150, Total = 650.

Production increased by 9q after following the IKSL advice. (Sales @ 30/- total 9 quintal i.e. 900 kg, gross income 27,000/- Increase in net income = (27,000 – 650) = 26,350/560 sq m.

`

` `

`

`

` `

43IFFCO KISAN SANCHAR LIMITED42 IFFCO KISAN SANCHAR LIMITED

INDIVIDUALSUCCESS STORIESContinued

th5 Annual Report 2011-12

Farmer's Name : PRASHANT SARDE

Village : Sardewadi

District : Pune

State : Maharashtra

Mobile : 9860192397

Mr. Sarde had received a weather alert voice message about the impending hail storms in Grape growing regions in Maharashtra. He called IKSL's Helpline to suggest him a cheap and effective way of protecting his vineyards from hail storms at harvesting stage.

Immediate erection of shade nets on vineyards was suggested for protection against hail storms during the harvesting period.

Shade net ` 48,000

Labour cost ` 1,500

Total ` 49,500

Due to prompt action of safeguarding the vineyards, he saved his berries at the harvesting stage. After harvesting he earned a total income of ` 7, 02,000. Increase in net income = ` (7, 02,000- 49,500) = ` 6, 52,500. In the absence of this cover, the farmer would have lost his entire Grape crop as a severe hail storm lashed the area as expected.

Problem

Solution

Cost incurred

Benefit

Farmer's Name : SK. MAHUBAR RAHAMAN

Village : Dinhata

District : Cooch Behar

State : West Bengal

Mobile : 8116125448

Fruits of banana are small in size and not ripening properly. The small and uneven ripen fruits have less market value.

Apply the mixture of the micronutrients; spray Trassel - 2 @ 5 gm per litre of water on a bright sunny day. The second spray should be done after 10 days of first spray.

Total 300 plants with better quality fruits were sold for 30,000/-. If the fruits were small in size then the price of the whole fruits was 20,000/-. After spraying of the micro-nutrient mixture the farmer earned extra (30,000 - 20,000/-) = 10,000 from his 0.13 ha of banana garden.

Problem

Solution

Benefit

`

`

` `

Farmer's Name : RAJ KUMAR

Village : Baldoh

District : Una

State : Himachal Pradesh

Mobile : 9805233444

Fruit cracking in capsicum crop.

Problem

Farmer's Name : KHEM CHAND

Village : Suriyas

District : Nagaur

State : Rajasthan

Mobile : 9001394611

Farmer wanted to know about mandi price of green gram.

According to NCDEX green gram price may increase after 30 days. So, you should wait for a month.

When asked green gram price was 3200/quintal. After one month, price increased to 3900/quintal. Increase in price 700/quintal. Farmer had 30 quintals green gram. Total gain was = 30 x 700 =

21000/-.

Problem

Solution

Benefit`

`

`

`

`

Solution

Benefit

Fruit cracking normally occurs due to deficiency of either micro-nutrient (viz., Ca, B) or water. Since, water supply was adequate, therefore it was advised to spray crop with Biozyme. Cost incurred for recommendation Biozyme = 500, Labour charge = 150, Total = 650.

Production increased by 9q after following the IKSL advice. (Sales @ 30/- total 9 quintal i.e. 900 kg, gross income 27,000/- Increase in net income = (27,000 – 650) = 26,350/560 sq m.

`

` `

`

`

` `

45IFFCO KISAN SANCHAR LIMITED

Coffey International Award

IFFCO Kisan Sanchar Limited received the 'Business in the Community's (BITC) Award for Excellence 2011 - 'Coffey International Award' on 5th July, 2011 at Royal Albert Hall, London. IKSL received the award for its nomination: “mPower : a unique mobile service empowering farmers through timely information delivery” under the International category, which is conferred on companies whose activities demonstrate positive impact against one or more of the United Nations' Millennium Development Goals (MDGs). The Award comprises a plaque and a citation signed by HRH Prince Charles.

BITC is one of “The Prince's Charities”, a group of not-for-profit organisations in U.K. With HRH Prince Charles as patron, the annual BITC Awards for Excellence are the premier awards recognising companies that are integrating responsible business practice into their mainstream operations and are delivering positive impacts in the environment, the marketplace, the workplace and the community.

AWARDS AND ACCOLADES

IKSL's efforts at empowering Indian farmers have drawn both national and international recognition.

th5 Annual Report 2011-12

45IFFCO KISAN SANCHAR LIMITED

Coffey International Award

IFFCO Kisan Sanchar Limited received the 'Business in the Community's (BITC) Award for Excellence 2011 - 'Coffey International Award' on 5th July, 2011 at Royal Albert Hall, London. IKSL received the award for its nomination: “mPower : a unique mobile service empowering farmers through timely information delivery” under the International category, which is conferred on companies whose activities demonstrate positive impact against one or more of the United Nations' Millennium Development Goals (MDGs). The Award comprises a plaque and a citation signed by HRH Prince Charles.

BITC is one of “The Prince's Charities”, a group of not-for-profit organisations in U.K. With HRH Prince Charles as patron, the annual BITC Awards for Excellence are the premier awards recognising companies that are integrating responsible business practice into their mainstream operations and are delivering positive impacts in the environment, the marketplace, the workplace and the community.

AWARDS AND ACCOLADES

IKSL's efforts at empowering Indian farmers have drawn both national and international recognition.

th5 Annual Report 2011-12

IFFCO KISAN SANCHAR LIMITED46 47IFFCO KISAN SANCHAR LIMITED

Manthan Award South Asia 2011

IKSL was selected for the Chairman's Distinction for the year under the Manthan Award South Asia 2011 held on December 2, 2011 for Enabling Innovative Deployment of Mobile Phone for Empowerment of Indian Farmers.

SKOCH Digital Inclusion Award

IKSL was awarded the SKOCH Digital Inclusion Award for the Project, “Farmers' Empowerment through Mobile Phone” under the category “Value Added Services” at SKOCH Digital Inclusion Awards on September 1, 2011. The Award is meant for those who have contributed to digital competitiveness/ digital deepening that yields growth or have used Information and Communication Technologies to serve the country and the economy better.

AWARDS AND ACCOLADESContinued

th5 Annual Report 2011-12

eWorld Forum 2011 Award

IKSL was awarded the Best Jury Award for ICT enabled Agriculture Initiative for the Project 'm-Powering Farmers' at eWorld Forum 2011 on August 2, 2011. The Award was received from Sh. R. Chandrashekhar, Secretary to the Government of India, Department of Telecom, Ministry of Communication & IT and Sh. Shankar Aggarwal, Addl. Secretary to the Government of India, Department of Information Technology. The eWorld 2011 Awards were instituted with the primary aim of felicitating and acknowledging unique and innovative initiatives in the use of Information and Communication Technology for Development (ICT4D).

IFFCO KISAN SANCHAR LIMITED46 47IFFCO KISAN SANCHAR LIMITED

Manthan Award South Asia 2011

IKSL was selected for the Chairman's Distinction for the year under the Manthan Award South Asia 2011 held on December 2, 2011 for Enabling Innovative Deployment of Mobile Phone for Empowerment of Indian Farmers.

SKOCH Digital Inclusion Award

IKSL was awarded the SKOCH Digital Inclusion Award for the Project, “Farmers' Empowerment through Mobile Phone” under the category “Value Added Services” at SKOCH Digital Inclusion Awards on September 1, 2011. The Award is meant for those who have contributed to digital competitiveness/ digital deepening that yields growth or have used Information and Communication Technologies to serve the country and the economy better.

AWARDS AND ACCOLADESContinued

th5 Annual Report 2011-12

eWorld Forum 2011 Award

IKSL was awarded the Best Jury Award for ICT enabled Agriculture Initiative for the Project 'm-Powering Farmers' at eWorld Forum 2011 on August 2, 2011. The Award was received from Sh. R. Chandrashekhar, Secretary to the Government of India, Department of Telecom, Ministry of Communication & IT and Sh. Shankar Aggarwal, Addl. Secretary to the Government of India, Department of Information Technology. The eWorld 2011 Awards were instituted with the primary aim of felicitating and acknowledging unique and innovative initiatives in the use of Information and Communication Technology for Development (ICT4D).

IFFCO KISAN SANCHAR LIMITED48

Enthusiastic Farmers Listening to IKSL's Advisory