Reports and Accounts for the year ended 30th September, · PDF fileReports and Accounts for...

The Saraswati Industrial Syndicate Limited

Reports and Accounts for the year ended30th September, 2010

�The Saraswati Industrial Syndicate Limited

AnnuAL RepoRT 2009-10

BoARd of dIRecToRSdirectors Mr.C.R.Thompson Mr.VinodK.Nagpal Mr.TahirHasan Mr.V.K.Sachdeva Mr.ArunKathpaliaWhole Time director Mrs.NinaPuriManaging director Mr.AdityaPuri

chairman Mr.RanjitPuri

Audit committee Mr.VinodK.Nagpal-Chairman Mr.ArunKathpalia Mr.AdityaPuri

executive director & Mr.S.K.Khoranacompany Secretary

Bankers StateBankofPatiala StandardCharteredBank StateBankofTravancore StateBankofIndia StateBankofHyderabad PunjabNationalBank CorporationBank INGVysyaBank EXIMBank IndusIndBank HSBCBank ICICIBank StateBankofMysore RoyalBankofScotland StateBankofBikaner&Jaipur

Registered Office Yamunanagar,Haryana

units - ISGEC - ISGECJohnThompson - UttarPradeshSteels

� The Saraswati Industrial Syndicate Limited

Contentspage no.

Directors’Report 5AnnexuretoDirectors’Report 8Directors’ResponsibilitystatementunderSection��7(�AA)oftheCompaniesAct,�956 �0ManagementDiscussion&Analysis ��ReportofCorporateGovernance ��Auditors’ Certificate on Compliance of Corporate Governance 21Auditors’Report ��AnnexuretoAuditors’Report �3BalanceSheet �6Profit & Loss Account 27ShareCapital Schedule A �8ReservesandSurplus Schedule B �9Secured Loans Schedule C 29Unsecured Loans Schedule D 29FixedAssets Schedule E 30Investments Schedule F 3�Inventories Schedule G 33SundryDebtors Schedule H 33CashandBankBalances Schedule I 33OtherCurrentAssets Schedule J 34Loans and Advances Schedule K 34Current Liabilities Schedule L 35Provisions Schedule M 35Sale,ServiceandRelatedIncome Schedule I 36OtherIncome Schedule II 36Profit from Farm Operations Schedule III 37Increase/(Decrease)inStockofFinishedGoodsandWork-in-progress Schedule IV 37ManufacturingExpenses Schedule V 38EmployeeCost Schedule VI 38AdministrationandSellingExpenditure Schedule VII 39InterestandFinancialCharges Schedule VIII 39Statement on Significant Accounting Policies Schedule IX 40NotestoAccounts Schedule X 44CashFlowStatement 58Balance Sheet Abstract and Company’s General Business Profile 60StatementPursuanttoSection��oftheCompaniesAct,�956 6�consolidated Report and Accounts for the year ended 30th September, 2010Auditors’Report 64BalanceSheet 66Profit & Loss Account 67ShareCapital Schedule A 68ReservesandSurplus Schedule B 69Secured Loans Schedule C 69Unsecured Loans Schedule D 69FixedAssets Schedule E 70Investments Schedule F 7�Inventories Schedule G 73SundryDebtors Schedule H 73CashandBankBalances Schedule I 74OtherCurrentAssets Schedule J 74

3The Saraswati Industrial Syndicate Limited

Loans and Advances Schedule K 74Current Liabilities Schedule L 75Provisions Schedule M 75Sale,ServiceandRelatedIncome Schedule I 76OtherIncome Schedule II 76Profit from Farm Operations Schedule III 77(lncrease)/DecreaseinstockofFinishedGoodsandWork-in-progress Schedule IV 77ManufacturingExpenses Schedule V 78EmployeeCost Schedule VI 78AdministrationandSellingExpenditure Schedule VII 79InterestandFinancialCharges Schedule VIII 79Statement on Significant Accounting Policies Schedule IX 80NotestoAccounts Schedule X 85CashFlowStatement 97

ISGec covema Limited (A Subsidiary)

BoardofDirectors 99Directors’Report �00Auditor’sReport �0�BalanceSheet �06Profit and Loss Account 107 Sharecapital Schedule A �08Unsecured Loans Schedule B 108 Reserves&Surplus Schedule C �08Fixedassets Schedule D �09SundryDebtors Schedule E ��0Cash&BankBalances Schedule F ��0Loans & Advances Schedule G 110Current Liabilities Schedule H 110ErectionCost Schedule I ��Statement on Significant Accounting Policies & Notes to Accounts Schedule J 112 CashFlowStatement ��5Balance Sheet Abstract and Company’s General Business Profile 116

ISGec exports Limited (A Subsidiary)

BoardofDirectors ��7Directors’Report ��8Secretarial Compliance Certificate 120Auditors’Report ��3BalanceSheet ��6Profit and Loss Account 127ShareCapital Schedule A ��8Reserves&Surplus Schedule B ��8Unsecured Loans Schedule C 128FixedAssets Schedule D ��8SundryDebtors(Unsecured) Schedule E ��9Cash&BankBalances Schedule F ��9Loans&Advances Schedule G ��9Current Liabilities Schedule H 129Provisions Schedule I �30OtherIncome Schedule J �30

4 The Saraswati Industrial Syndicate Limited

Operating&otherExpenses Schedule K �30Statement on Significant Accounting Policies Schedule L 131 CashFlowStatement �33Balance Sheet Abstract and Company’s General Business Profile 134

Saraswati Sugar Mills Limited. (A Subsidiary)

BoardofDirectors �35Directors’Report �36AnnexuretoDirectorsReport �39Directors’ResponsibilityStatementunderSection��7(�AA)oftheCompaniesAct,�956 �4�Auditors’Report �4�AnnexuretoAuditors’Report �43BalanceSheet �46Profit and Loss Account 147 ShareCapital Schedule A �48ReservesandSurplus Schedule B �48Secured Loans Schedule C 148 Unsecured Loans Schedule D 148 FixedAssets Schedule E �49Investments Schedule F �50Inventories Schedule G �50SundryDebtors Schedule H �5�CashandBankBalances Schedule I �5�OtherCurrentAssets Schedule J �5�Loans and Advances Schedule K 152Current Liabilities Schedule L 152Provisions Schedule M �5�GrossSale Schedule I �53OtherIncome Schedule II �53Increase/(Decrease)instockofFinishedgoodsandpartlyprocessedsugar Schedule III �53ManufacturingExpenses Schedule IV �54EmployeeCost Schedule V �54AdministrationandSellingExpenses Schedule VI �54InterestandFinancialCharges Schedule VII �55Statement of Significant Accounting Policies Schedule VIII 156 NotestoAccounts Schedule IX �59CashFlowStatement �65Balance Sheet Abstract and Company’s General Business Profile 167

ISGec engineering & projects Ltd. (A Subsidiary)

BoardofDirectors �68Directors’Report �69Auditor’sReport �70AnnexuretoAuditors’Report �7�BalanceSheet �73Profit and Loss Account 174Notes on Accounts & Statement of Significant Accounting Policies 175 Balance Sheet Abstract and Company’s General Business Profile 176


directors’ Report�.00 TheDirectorsarepleasedtopresenttheirSeventy-seventhAnnualReportonthebusinessandoperationsof

the Company and financial results for the year ended September 30, 2010.

�.00 fInAncIAL ReSuLTS:

(Figures in Rs. Lacs)

�.0� TheFinancialResultsfortheyeararegivenbelow: Profit before Depreciation 14605.88 Depreciation 3073.6� Profit before Taxes 11532.26 Less: Provision for Taxation (including deferred tax) 3328.99 Profit after taxes and available for appropriations 8203.27 Less: a) Dividend

[email protected]/-pershare(paid) 663.�5FinalDividend@Re.�/-pershare 73.70

b)TaxonDividend ��.�4 749.�9 c)TransfertoGeneralReserve 8�0.33 Balance carried to Profit & Loss Account 6633.75

2.02 In spite of the recession, which continued during the first quarter, your Company had an increase in turnover forthe8thyearinsuccession.TheturnoverisRs.�809.90croresagainstRs.�765.3�croresinthepreviousyear.Profit before tax is also higher at Rs. 115.32 crores against Rs. 80.04 crores in the previous year.

2.03 The financial position of the Company has been excellent. The Company has invested Rs.168. 22 crores in Liquid Plus or Fixed Maturity Plans of Mutual Funds and Bank Deposits, which in our view have adequate security.

2.04 The subsidiary company, Saraswati Sugar Mills Limited, has however shown a marginal loss during the year. Higher cane prices had to be paid in view of shortage and consequent competition for cane. Sugar prices,whichwereexpectedtoremainatareasonablelevel,decreasedduetolargescaleimportsofsugarand Government’s regulatory steps. The working of the sugar factory (recovery and total quantity of cane crushed)ontheotherhand,wasbetterthanlastyear.NosilverliningispresentlyseeninthecurrentyearastheAllIndiasugarproductionisexpectedtobehigherthanAllIndiaconsumption.

3.00 dIVIdend:

3.01 The Board has decided to recommend Final Dividend of Re.1/- per Equity Share of Rs.10/- each, in addition to the Interim Dividend (already paid) of Rs.9/- per Equity Share.

4.00 opeRATIonS:

4.01 The lower order booking as a result of recession in last year had an impact on the working during the first quarter of the year. The shops, though almost fully occupied, executed orders with low margins. The situation improved in the subsequent quarters.

4.0� YourCompanyhadarecordorderbookingthisyear–bothonthedomesticandexportfronts.

4.03 ThemarketforBoilersandSugarMachinerycontinuedtobegoodandtheCompanybookedanumberofexportorders.TheseincludeAtmosphericFluidisedBedBoilerburningcoffeegroundwasteforsupplytoChinaandtwolargecapacityboilerstobesuppliedtoCentralAmerica.TheCompanycontinuedtobookordersinSouthEastAsia.


4.04 AsforSugarMachinery,yourCompanysecuredahighvalueorderinAfrica.ThisisthesinglelargestvalueorderbookedinthehistoryoftheCompany.TheCompanycontinuedtoconsolidateitspositioninSouthEastAsiaandhasbookedfurtherbusiness.

4.05 The Process Equipment Division continued to book orders for large Pressure Vessels and Heat Exchangers including equipment to be exported to North America and Europe. On the domestic front, orders were booked forthesupplyofaTertiarySeparatorforFluidisedCatalyticConverterUnitandConvectionmodulesforfired heaters.

4.06 AsregardstheMachineBuildingDivision,withtherecoveryoftheAutomotivesector,businessimprovedandtheCompanyhasrecentlybookedgoodordersforthesupplyofPresses.Infact,thePressesbusinessispoisedforfurthergrowthandtheCompanyisenvisagingtheincreaseofmanufacturingcapacitytocatertotheexpectedincreaseinorderbooking.InadditiontoPresses,theDivisioncontinuesitsbusinessofbookingjobbingordersfromSteelandotherIndustries.

4.07 ThefactorysetupatBawalnearGurgaontomanufactureStandardPresses,commencedproductionduringtheyear.

4.08 WithregardtoSteelCastings,theorderbookingisgoodandtheUnitcontinuestosupplycastingstomanyof the prestigious manufacturers of Thermal Power Equipment and Hydro Power Equipment in the country. TherehasbeennegligibleexportduetorecessioninEurope,whichresultedinloweringofpricesbyFoundriesinEurope.

4.09 Your Company has entered into a License Agreement for Sub-Critical and Super-Critical Technologies with FosterWheeler,USA,forPulverisedCoal(PC)FiredBoilers.ThiswillenabletheCompanytoengineer,design,manufacture,erectandsellSub-CriticalPulverisedCoalFiredBoilers(60MWto�000MW)andSuper-CriticalPulverisedCoalFiredBoilers(550MWto�000MW)primarilyfortheIndianterritory.

4.�0 Asasteptowardstechnologyup-gradation,theCompanyhassignedanagreementwithBoschProjects,SouthAfrica,forthetransferoftechnologyformanufacturingChainlessCaneDiffusersandotherSugarMachineryequipment with exclusive rights for Asia (excluding Thailand).

4.�� TheCompanyhasalsosignedaTechnologyAgreementwithBelleli,Italy,forthemanufactureofVesselswithcomplexchemistriesfortheOil,GasandPowersectors,primarilyforIndia.

4.�� Astheshareholdersareaware,aJointVenturewasformedinthenameofISGECHACOMetalFormingMachinery Private Limited along with HACO N.V. Belgium. As the prospects were not promising, the Board decided to exercise the option to exit from the Joint Venture in terms of the Memorandum ofUnderstanding.

4.�3 Industrialrelationsremainedpeaceful.

5.00 conSoLIdATed fInAncIAL STATeMenTS:

5.01 The consolidated financial statements are attached hereto.

6.00 eneRGY conSeRVATIon, TecHnoLoGY ABSoRpTIon, foReIGn eXcHAnGe eARnInGS & ouTGo:

6.0� IncompliancewiththeprovisionsofSection��7(�)oftheCompaniesAct,�956,thestatementgivingtherequired information is annexed hereto.

7.00 pARTIcuLARS of eMpLoYeeS:

7.0� The provisions of Section ��7(�A) of the Companies Act, �956, read with the Companies (Particulars ofEmployees) Rules, 1975, require the Company to provide certain details about the employees who were in receiptofremunerationofnotlessthanRs.�4lacs(Rupees�4,00,000)duringtheyearended30thSeptember�0�0ornotlessthanRs.�lacs(Rupees�,00,000)permonth,duringanypartofthesaidyear.Accordingto


theprovisionsofsection��9(�)(b)(iv)oftheCompaniesAct,�956,theDirectors’Reportbeingsenttotheshareholdersdoesnotincludethisannexure.TheAnnexureregardingtheParticularsofEmployeesundersection��7(�A)oftheCompaniesAct,�956,willbeavailableforinspectionbyanymemberattheregisteredoffice of the Company during working hours, 21 days before the date of the AGM.

8.00 dIRecToRS’ ReSponSIBILITY STATeMenT:

8.01 The Directors’ Responsibility Statement as required under Section 217(2AA) of the Companies Act, 1956, is annexedhereto.

9.00 MAnAGeMenT dIScuSSIon & AnALYSIS RepoRT:

9.01 In compliance with the provisions of Clause 49 of the Listing Agreement, Management Discussion & Analysis Reportisannexedhereto.

�0.00 coRpoRATe GoVeRnAnce:

10.01 In compliance with the provisions of Clause 49 of the Listing Agreement a report on Corporate Governance isannexedhereto.

��.00 fIXed depoSITS:

��.0� TheamountofdepositwiththeCompany,asatthecloseoftheyear,waswellwithinthelimitsprescribedundertheprovisionsoftheCompaniesAct.��7depositorsoftheCompanyhad,asonSeptember30,�0�0,notclaimedtheirdepositsuptotheduedatesforrepayment.TheamountinvolvedwasRs.��9.78lac.

��.00 SuBSIdIARY coMpAnIeS:

��.0� TheAuditedStatementsofaccountsofthesubsidiarycompaniesalongwiththeReportofBoardofDirectorsandtheAuditors’Reportthereonofthesubsidiarycompaniesareannexedhereto.

��.0� AstatementpursuanttoSection��oftheCompaniesAct,�956,isalsoannexedhereto.

�3.00 peRSonneL:

�3.0� TheBoardwishestoexpresstheirappreciationtoalltheemployeesoftheCompanyfortheiroutstandingcontributiontotheoperationsoftheCompanyduringtheyear.

�4.00 AcKnoWLedGeMenT:

�4.0� YourDirectors take thisopportunity to thanktheFinancial Institutions,Banks,GovernmentAuthorities,RegulatoryAuthorities,StockExchangesandtheShareholdersfortheircontinuedco-operationandsupporttotheCompany.

�4.0� Withtheseremarks,wepresenttheAccountsfortheyearendedSeptember30,�0�0.

BYORDEROFTHEBOARD

RANJITPURIDated:�7November,�0�0 Chairman


AnneXuRe To dIRecToRS’ RepoRTpARTIcuLARS ReQuIRed undeR THe coMpAnIeS (dIScLoSuRe of pARTIcuLARS In THe

RepoRT of BoARd of dIRecToRS) RuLeS, 1988.

A. conSeRVATIon of eneRGY:

(a, b & c) energy conservation Measures taken, proposed and Impact of Measures taken:

Effortsforenergyconservationareacontinuingprocess.Theseeffortscontinuedin�009-�0also.

d) Total energy consumption and energy consumption per unit of production.

ThesearedetailedinForm‘A’enclosed.

B. TecHnoLoGY ABSoRpTIon:

e) efforts made in Technology Absorption:

ThesearedetailedinForm‘B’enclosed.

c. foReIGn eXcHAnGe eARnInGS And ouTGo:

(f) Activities relating to export, initiative taken to increase exports, development of new export market for products and services and export plans.

Pleaserefertoparagraphs4.03,4.04and4.08oftheDirectors’Report.

(g) Total foreign exchange used and earned (2009-10):

(Rs.incrores)

- TotalForeignExchangeearned : �88.93

- TotalForeignExchangeused : �3�.�6


foRM –AfoRM foR dIScLoSuRe of pARTIcuLARS WITH ReSpecT To conSeRVATIon of eneRGY

uTTAR pRAdeSH STeeLS

current Year PreviousYear 2009-2010 �008-�009

(A) power & fuel consumption:

1 electricity (a) Purchased(Units) (KWH) �,�7,36,3�0 �,�4,4�,080 TotalAmount (Rupees) 7,07,4�,464 6,05,�8,09� Cost/Unit (Rs.PerUnit) 5.55 5.�9 (b) OwnGeneration(Units) (ThroughDieselGenerator) (KWH) 8,68,4�� 3,�9,66� Unit per Litre of Diesel Oil (Units) 3.76 3.38 Cost/Unit (Rs.PerUnit) 8.84 9.00

2 other

(a) Hard coke Quantity (Tonnes) 5.68 �.55 TotalCost (Rupees) 50,084 ��,675 AverageRate (Rs.PerTonne) 8,8�8 8,500 (b) furnace oil Quantity (Litres) 20,51,074 16,69,652 TotalCost (Rupees) 5,3�,6�,303 3,39,��,6�8 Average Rate (Rs.per Litre) 25.92 20.32 (c) High Speed diesel oil Quantity (Litres) 3,60,728 2,46,691 TotalCost (Rupees) �,�9,03,�90 79,�7,9�� Average Rate (Rs.per Litre) 33.00 32.10

(B) consumption per unit production:

1 Ingots (i) Production (Tonnes) �35�.5�5 738.4�0 (ii) ElectricityPerM.T. (KWH) 573 556 2 castings (i) Production (Tonnes) 4,�6�.496 3,676.663 (ii) ElectricityPerM.T. (KWH) �570 �609

Reasons for variance in the consumption of power & fuel from previous year.

(a ElectricitycostperunithasincreasedoverlastyearduetotariffincreasebyUttarPradeshPowerCorporationLtd. (UPPCL).

(b) In case of own generation, cost per unit is lower than last year because of installation of new energy efficient DGSetof�000KVA.

(c) ThepowerconsumptionperM.T.ofIngotproducedismorethanlastyearbecauseofhigherproductionofsophisticated Alloy Steel Ingots in which additional processing through Ladle Refiring Furnace is required.

(d) The power consumption per M.T. of Casting produced is lower than last year because of more efficient running ofmeltingfurnacesandlessrepairs.

�0 The Saraswati Industrial Syndicate Limited

foRM –BfoRM foR dIScLoSuRe of pARTIcuLARS In ReSpecT of TecHnoLoGY ABSoRpTIon, 2009-2010

TecHnoLoGY ABSoRpTIon, AdApTATIon And InnoVATIon:

ISGec John Thompson unit (IJT)

AsreportedintheDirectors’Report,anewAgreementwithFosterWheeler,USA,fortransferoftechnologyforPulverizedCoalFiredSub-CriticalBoilers(60MWto�000MW)andSuper-CriticalBoilers(550MWto�000MW)wassigned.TheAgreementisvalidupto�030.

ThisisanewgenerationtechnologyanditwilltakesometimetoassimilatethetechnologyforwhichcontinuedsupportofFosterWheelerisavailable.

TherearetwoearlierAgreementsfortechnologytransferwithFosterWheeler,USA:-

i) ForCirculatingFluidizedBedCombustion(CFBC)Boilersupto99.99MegaWatt(electrical),validupto�0��.

ii) ForOil&GasShopAssembledWaterTubePackagedBoilersupto�60Tonnesperhour,validupto�0�7.

Boilershavebeensuppliedsuccessfully,whicharedesignedbyCompany’sEngineerstrainedbytheCollaborators.TheCompanyismovingprogressivelytosupplybiggersizedBoilers.Thecompleteabsorptionandadaptationwillhappeninduecourse.

ISGec unIT:

process equipment division (ped)

Under the Agreement entered with M/s. Hitachi Zosen Corporation, Japan, for critical equipment for the Fertilizer andOil&GasSectors,theCompanyhasbookedafewordersrecentlyandisworkingjointlywithourCollaboratortoexecutetheorders.Theexecutionwillenableustoabsorbandadaptthetechnology.

directors’ Responsibility Statement under Section 217 (2AA) of the companies Act, 1956

Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956 (‘the Act’) and based on the representations received from the operating management, your Directors hereby confirm that:

(i) in the preparation of the Annual Accounts for �009-�0, the applicable Accounting Standards have beenfollowedandtherearenomaterialdepartures,

(ii) theyhaveselectedsuchaccountingpolicieswiththeconcurrenceoftheStatutoryAuditorsandappliedthemconsistentlyandmadejudgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairview of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the financial year,

(iii) they have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956. They confirm that there are adequate systems and controls for safeguarding the assets of the Company and for preventing anddetectingfraudandotherirregularities,

(iv) theyhavepreparedtheAnnualAccountsongoingconcernbasis.

��The Saraswati Industrial Syndicate Limited

Management discussion & Analysis1. Management Discussion and Analysis, as required under Clause 49 of the Listing Agreement, giving further

Analysis,Review,OutlookandThreatsisgivenbelow:-

a) TheCompanyanticipatesgrowth inboth, turnoverandnumberof customers,during the currentyear.

b) SeeingPowerasathrustsector,theCompanyhasenteredintoacollaborationwithFosterWheelerforthetransferoftechnologyforPulverisedCoalFiredSub-CriticalBoilers(60MWto�000MW)andSuper-CriticalBoilers(550MWto�000MW).Theentiretechnologyabsorptionwilltakeanumberofyears.ThesuccessofthebusinessintheseboilerswilldependonthepaceatwhichtheCompanyisabletoabsorbtechnology,thecooperationextendedbyFosterWheeler,thebuyingpatternofthecustomers(whethertheybuyboilersinisolationortheygoforapowerplantonEPCbasis)andalsotheextentofimportsthattakeplace,primarilyfromChina.

c) TheDahejplantisfullyoperationalasofnow.It’sfuturewilldependonhowmanyordersitcansecurefor large and complex Process Equipment. This in turn depends not only on the requirement of the Oil andGasIndustries,butalsothevariousapprovalsthatthePlantneedstosecure.ThereisalsointensecompetitioninthissectorfromtheKoreans.

d) If the buoyant growth in the Automobile Sector continues, the Company is reasonably confident that thedemandforPressesmanufacturedbytheCompanyshallincrease.Thechallengehereistokeepabreastofchangingtechnologies.

e) ThefactorysetupatBawalnearGurgaontomanufactureStandardPresses,commencedproductionduringtheyear.

f) ThemarketforSugarMachineryandBoilersforSugarPlantsonthedomesticfrontwilllargelydependonthehealthoftheSugarIndustrywhichisnotlikelytobeverygoodinthecomingyear.ThedemandforotherBoilersislikelytobebuoyant.

g) Inviewofaforesaidfactorsandslowrecoveryworldover,theprospectsforexportsareuncertain.

h) The foreign exchange market continues to suffer from wide fluctuations. Greater exposure of your Company to exports means that the risk from these fluctuations has increased.

i) AnyabnormalincreaseinsteelpricesislikelytohaveanadverseimpactontheCompany.

�. cAuTIonARY STATeMenT:

The statements may be “forward looking statements” within the meaning of applicable Securities Laws and Regulations.Actualresultscoulddiffermateriallyfromthoseexpressedorimplieddependinguponeconomicconditions,governmentpolicies,regulations,environmentallaws,taxregimesandotherfactors.

�� The Saraswati Industrial Syndicate Limited

Report on corporate Governance�. A brief statement on company’s philosophy on code of governance:

Clause 49 of the Listing Agreement with Stock Exchanges set the benchmark compliance rules for a listed company and the baseline for governance standards. The Company adheres to the prescribed corporatepracticesasperClause49. Italso followstransparency inbusinessdealings, timelydisclosures,effectiveinternalandexternalcommunications.

�. Board of directors:

a. Composition:

Ason30thSeptember�0�0,theBoardofDirectorscomprisesofaNon-ExecutiveChairman,twoExecutiveDirectors and five Non-Executive Independent Directors.

b. AttendanceofeachDirectorattheBoardMeetingsandatthelastAnnualGeneralMeeting,and

c. NumberofotherBoardsorBoardCommitteesinwhichhe/sheisaMemberorChairperson.

name of the director no. of Board Meetings attended

Whether attended the last Annual General Meeting

directorships in other companies as disclosed

Public Private CommitteeMembership

CommitteeChairmanship

non-executive chairman & promoterMr.RanjitPuri 8 Yes 5 - 4 �executive directors & promotersMr.AdityaPuri,ManagingDirector

8 Yes 7 � 5 -

Mrs.NinaPuri,Whole-timeDirector

7 No � - - -

non-executive Independent directorMr.VinodK.Nagpal 8 Yes � � - �Mr.TahirHasan 4 Yes 5 � - �Mr.C.R.Thompson Nil No - - - -Mr.ArunKathpalia 7 Yes � 3 - -Mr.VinodKumarSachdeva 8 Yes � - - -

d. NumberofBoardMeetingsheld,datesonwhichheld:

DuringtheyeareightBoardMeetingswereheldasunder:-

November��,�009 December�9,�009 January30,�0�0 March�0,�0�0 March�7,�0�0 May8,�0�0 August7,�0�0 September�5,�0�0

�3The Saraswati Industrial Syndicate Limited

3. Audit committee:

i. Briefdescriptionoftermsofreference:

The Board, as required under section 292A of the Companies Act, 1956 has laid down terms of reference, which briefly are:-

- To discuss with Auditors (a) Internal Control System and suggest modification, and (b) scope ofauditincludingobservationsofaudit;

- ToreviewQuarterly,HalfYearly,andAnnualFinancialStatements;

- ToensurecomplianceofInternalControls;

- TodiscusswithInternalAuditor(a)PeriodicalReports(b)Scopeofinternalaudit.

In addition, the Audit Committee keeps in view its role as provided under Clause 49 of the Listing Agreement.

ii. Composition,NameofMembersandChairperson:

-UptoJanuary30,�0�0:-

S.No. NameoftheCommitteeMember Position No.ofMeetingsattended�. Mr.VinodK.Nagpal Chairman ��. Mr.TahirHasan Member �3. Mr.AdityaPuri Member �

-AfterJanuary30,�0�0:-

S.No. NameoftheCommitteeMember Position No.ofMeetingsattended�. Mr.VinodK.Nagpal Chairman ��. Mr.ArunKathpalia Member �3. Mr.AdityaPuri Member �

Mr.S.K.Khorana,CompanySecretary,istheSecretaryoftheAuditCommittee.

iii. Meetingsandattendanceduringtheyear:

Duringtheyear, fourmeetingsoftheAuditCommitteewereheldonDecember�9,�009, January30,�0�0,May8,�0�0andAugust7,�0�0.DetailofattendancebyeachMemberisgivenintheabovetable.

4. Remuneration committee:

i. BriefdescriptionofTermsofReference:

TheRemunerationCommitteereviewsandrecommendsremunerationofExecutiveDirectorsasandwhen required.

ii. Composition,NameofMembersandChairperson:


S.No. NameoftheCommitteeMember Position No.ofMeetingsattended�. Mr.VinodK.Nagpal Chairman -�. Mr.TahirHasan Member -



S.No. NameoftheCommitteeMember Position No.ofMeetingsattended�. Mr.ArunKathpalia Chairman -�. Mr.VinodK.Nagpal Member -3. Mr.TahirHasan Member -

Mr.S.K.Khorana,CompanySecretaryistheSecretaryoftheRemunerationCommittee.

iii. Attendanceduringtheyear:

During the year, no meeting of the Remuneration Committee was required to be held.

iv. Remunerationpolicy:

RemunerationtoExecutiveDirectors isrecommendedbyRemunerationCommittee inaccordancewiththelimitsprescribedundertheCompaniesAct,�956.

v. DetailsofremunerationpaidtoDirectors:

Detailsaregivenin`Para��ofScheduleX–NotestoAccounts’oftheaccounts.

vi. DetailsofRemunerationpaidtoNon-ExecutiveDirectors:

Sl.No. NameofDirectorNatureofPayment

&Amount(Rs.inThousand)TotalAmount

(Rs.inThousand)Remuneration SittingFees

0�. Mr.VinodK.Nagpal �5 ��0 �350�. Mr.TahirHasan �5 50 7503. Mr.RanjitPuri �5 80 �0504. Mr.ArunKathpalia �5 90 ��505. Mr.VinodK.Sachdeva �5 80 �0506. Mr.C.R.Thompson �5 -- �5

Total 560

5. Shareholders/ Investors Grievance committee:

i. Composition,NameofMembersandChairperson:


Mr.VinodK.Nagpal - Chairman;

Mr.TahirHasan - Member;

Mr.AdityaPuri - Member.


Composition,NameofMembersandChairperson:

Mr.RanjitPuri - Chairman;

Mr.VinodKumarSachdeva - Member.


ii. Name and designation of Compliance Officer:

Mr.S.K.Khorana,CompanySecretary.

iii. NumberofShareholders’complaintsreceived:

Nil.

iv. NumberofcomplaintsnotsolvedtothesatisfactionofShareholders:

Nil.

v. Numberofpendingcomplaints:

Nil.

6 General Body Meetings:

i. Location and time of last three Annual General Meetings (AGM) held:

Date Location TimeMarch�0,�008

Office premises of Saraswati Sugar Mills Limited, RadaurRoad,Yamunanagar-�3500�(Haryana)

�0.00A.M.March�8,�009 ��.00NOONMarch�0,�0�0 ��.00NOON

ii. WhetheranySpecialResolutionspassedintheprevious3AGM:

Yes.SpecialResolutionsregardingremunerationtoNon-executiveDirectorsandalterationofArticlesofAssociationwerepassedintheAGMheldonMarch�8,�009andMarch�0,�0�0respectively.

iii. WhetheranySpecialResolutionpassedlastyearthroughpostalballot–detailsofvotingpattern:

No.

iv. Personwhoconductedthepostalballotexercise:

Notapplicable.

v. WhetheranySpecialResolutionisproposedtobeconductedthroughpostalballot:

No.

vi. ProcedureforPostalBallot:

Notapplicable.

7. disclosures:

i. Disclosures on materially significant related party transactions that may have potential conflict with theinterestsofthecompanyatlarge:

Nil.

ii. Detailsofnon-compliancebythecompany,penalties,stricturesimposedonthecompanybyDelhiStockExchangeorBombayStockExchangeorSEBIoranystatutoryauthority,onanymatterrelatedtocapitalmarkets,duringthelastthreeyears:

None.


iii. CodeofConductforDirectorsandSeniorExecutives:

TheCompanyhas laiddownaCodeofConduct forallBoardMembersandSeniorExecutivesoftheCompany.TheCodeofConduct isavailableon theCompany ‘swebsitewww.isgec.com.TheManaging Director has given a declaration that all the Directors and concerned Executives have affirmed compliancewiththeCodeofConduct.

iv. CEO/ CFO certification:

A certificate, duly signed by the Managing Director and Chief Financial Officer & Company Secretary relating to financial statements, internal controls and internal control systems for financial reporting as per the format provided in Clause 49(V) of the Listing Agreement, was placed before the Board, whotookthesameonrecord.

v. Details of compliance with mandatory requirements and adoption of the non-mandatory requirements ofthisclause:

Complied with all mandatory requirements as detailed above. Company has adopted non-mandatory requirement regarding appointment of Remuneration Committee.

8. Means of communication:

i. Quarterlyresults:

Yes.PublishedinNewspaper.

ii. Newspaperswhereinresultsnormallypublished:

(a) BusinessStandard(English),or (b) FinancialExpress(English)and

(c) VirArjun(Hindi).

iii. Anywebsite,wheredisplayed:

(a) OnCompany’swebsite:www.isgec.com

(b) OnSEBI’swebsite:www.corpfiling.co.in

(c) OnBSE’swebsite:www.bseindia.com

iv Whether it also displays official news releases:

There was no official news release.

v Thepresentationsmadetoinstitutionalinvestorsortotheanalysts:

Nopresentationwasmadetoinstitutionalinvestorsortotheanalysts.

9. Shareholding of non-executive Independent directors:

Sl.No. NameofDirectors NumberofSharesheld

0�. Mr.VinodK.Nagpal 6�0

0�. Mr.TahirHasan �640

03. Mr.ArunKathpalia ��0

04. Mr.VinodKumarSachdeva 390


�0. General Shareholder information:

i. AnnualGeneralMeetingdate,timeandvenue:

Annual General Meeting will be held on 26th March, 2011 at 12 : 00 Noon at the office premises of Saraswati Sugar Mills Limited, Radaur Road, Yamunanagar – 135001 (Haryana).

ii. FinancialYear:

�stOctoberto30thSeptember.

iii. DatesofBookclosure:

From�7thMarch,�0��to�6thMarch,�0��(bothdaysinclusive).

iv. DividendPaymentDate:

By�5thApril,�0��.

v. Listing on Stock Exchange:

Listed on Delhi Stock Exchange and Bombay Stock Exchange.

vi. StockCode

TheStockCodeNumberisISIN–INE858B0�0��.

BombayStockExchangehasallottedscripnameasSARASWATIandscripcodeas533033.

vii. Stock Market Price Data: High, Low during each month in last financial year on BSE and DSE:

Month Bombay Stock exchange

Highest (Rs.) Lowest (Rs.)

October,�009 89�.00 773.05

November,�009 965.05 74�.00

December,�009 ��90.00 900.00

January,�0�0 �463.95 ��30.00

February,�0�0 �484.00 ��8.00

March,�0�0 �375.00 ��63.�0

April,�0�0 �479.00 ��0.00

May,�0�0 �330.00 �08�.�0

June,�0�0 ��85.00 ��.00

July,�0�0 ��94.95 �074.90

August,�0�0 �4�4.00 ��6.05

September,�0�0 �459.90 ��80.00

As there was no trading on DSE, quotations were not available for the year ended on 30th September, �0�0.


viii SharePricePerformanceincomparisontoBSESensex:

ix. RegistrarandTransferAgents:

M/s. Alankit Assignments Limited, ‘Alankit House’, 2E/21, Jhandewalan Extension, New Delhi – 110055.Phone:+9�-��-4�54��34,�354��34,Fax:+9�-��-4�540064,Email:[email protected]

x. ShareTransferSystem:

Thesharetransfersareattended,registeredandreturnedwithin30daysfromthedateofreceipt,ifthedocumentsareinorderinallrespects.

xi. Distributionofshareholding:

TheDistributionofshareholdingasonSeptember30,�0�0is

Shareholding of nominal Value

Shareholders Share Amount

Rs. Rs. Number %ofTotal (InRs.) %ofTotalUp-to 5,000 4,�� 89.56 35,00,�90 4.755,00� �0,000 �6� 3.5� ��,�7,�40 �.65

�0,00� �0,000 �� .64 �8,69,080 �.53�0,00� 30,000 50 �.09 ��,50,�80 �.7030,00� 40,000 39 0.85 �3,67,600 �.8640,00� 50,000 �8 0.39 8,3�,�80 �.�350,00� �,00,000 �9 0.63 ��,39,�70 �.90

�,00,00� andabove 6� �.33 6,�5,�9,560 83.48TOTAL 4,590 �00.00 7,36,95,400 �00.00


ShareholdingpatternasonSeptember30,�0�0:

category no of Shareholders no. of shares held percentagePromoters 4 4�,48,3�9 57.65FIs,Banks&MutualFunds 6 4,0�0 0.05Others(Public) 4,580 3�,�7,�9� 4�.30

xii. Dematerialization of shares and liquidity

33.3�%ofsharecapitalhasbeendematerializedasonSeptember30,�0�0.

xiii OutstandingGDRs/ADRs/WarrantsoranyConvertible Instruments,conversiondateandlikelyimpact on equity:

ThereisnooutstandingGDRs/ADRs/WarrantsoranyConvertibleInstrumentsandthereforethereis no impact on equity.

xiv. Compliance under Listing Agreement:

Company is regularly complying with the provisions of the Listing Agreement. Information, certificates and returns as required under Listing Agreement are sent to the Stock Exchanges within the prescribed time.

xv. InformationondeviationfromAccountingStandards,ifany:

TherehasbeennodeviationfromtheAccountingStandardsinpreparationofAnnualAccountsforthe financial year 2009-2010.

xvi. Plantlocations:

plant locations Item of Manufacture Address for correspondence

a) ISGECYamunanagar

PressureVessels&HeatExchangers,Presses–Mechanical&Hydraulic,Boilers,Container,Castings,SugarandotherIndustrialMachinery.

Yamunanagar-�3500�Haryana.

b) ISGECDahej PressureVessels,Columns,HeatExchangersandBoilers.

�3/B,G.I.D.CIndustrialEstate,Dahej,Taluka-Vagara,Dist.Bharuch-39��30.Gujarat.

c) UttarPradeshSteels,Muzaffarnagar

Castings-Steel&Iron VillageNara,P.O.Mansurpur–�5��03,DistrictMuzaffarnagar,U.P.

d) ISGECBawal StandardMechanicalPresses PlotNo.��3,Sector-6,HSIIDC,IndustrialGrowthCentre,Bawal,Distt.Rewari-��350�Haryana.

xvii.Engineering,Procurement&ConstructionDivision:

name Item Address

a) ISGECJohnThompson Boilers A-4,Sector–�4Noida–�0�30�,U.P.

b) ISGEC SugarMachinery A-4,Sector–�4Noida–�0�30�,U.P.


xviii. Addressforcorrespondence:

Corporate Office: A-4,Sector–�4,Noida–�0�30�,U.P.Tel.:+9�-��0-330�00�/�003Fax.:+9�-��0-�4��50e-mail:[email protected]

Registered Office: RadaurRoad,Yamunanagar�3500�Haryana.Tel:0�73�-3076�4/6��Email:[email protected]

xix. Details of the Director seeking reappointment in Annual General Meeting to be held onMarch 26th , 2011 (In pursuance of Clause 49 of the Listing Agreement)

NameoftheDirector Mr.TahirHasan Mr.RanjitPuri Mr.AdityaPuriDateofBirth ��.07.�946 04.03.�940 04.��.�967DateofAppointment �9.0�.�005 �4.�0.�98� 0�.05.�996Qualification B.E.(Mech.) B.Sc.IndustrialManagement

fromMassachusettsInstituteofTechnology(USA)

B.A.(Honours),M.A.(CANTAB)ECON.fromCambridgeUniversity(U.K.)

Boardpositionheld Non-ExecutiveDirector Non-ExecutiveDirector&Chairman

ManagingDirector

Natureofhis/herexpertise in specific functionareas

Industrialist,ManagingCompanies

ManagingCompanies Industrialist,ManagingCompanies

OtherDirectorship ShervaniSugarSyndicate Limited, Allahabad ShervaniIndustrialSyndicate Limited, Allahabad Star Hotels Limited, NewDelhi Saraswati Sugar Mills Limited, Yamunangar TaraCementCompany(P) Limited, Allahabad TaraSnacksandFoods Limited, Allahabad Samar Foods (P) Limited , NewDelhi

TheYamunaSyndicate Limited SaraswatiSugarMills Limited JullundurMotorAgency (Delhi) Limited ISGECEngineering& Projects Limited

TheYamunaSyndicateLimited

ISGEC Covema Limited ISGEC Exports Limited SaraswatiSugarMills

Limited JullundurMotorAgency

(Delhi) Limited JMARaneMarketing

Limited ISGECEngineering&

Projects Ltd.

Chairman/MemberofCommitteeoftheBoardofCompaniesofwhichhe/sheisaDirector

TheSaraswatiIndustrialSyndicate Limited RemunerationCommittee-Member

Saraswati Sugar Mills LimitedAuditCommittee-ChairmanTheSaraswatiIndustrialSyndicate LimitedShareholders/InvestorsGrievanceCommittee

TheSaraswatiIndustrialSyndicate Limited- AuditCommittee-MemberJullundurMotorAgency(Delhi) Limited- AuditCommittee-Member

ShareholdingofNon-ExecutiveDirectorsasstatedinClause49(IV)(E)(v)

�640shares0.0�%

6,54,�76shares8.88%

NotApplicable

Annual declaration by Managing director pursuant to clause 49(1) (d) (ii) of the Listing AgreementAs required under Clause 49(1)(D)(ii) of the Listing Agreement with the Stock Exchange, I declare that all Board Members and Senior Management Personnel of the Company have affirmed compliances with the Company’s CodeofConductandEthicsfortheyearended30-09-�0�0.

Yamunanagar AdityaPuriDated:�7November,�0�0 ManagingDirector

��The Saraswati Industrial Syndicate Limited

Auditors’ Certificate on Compliance of Corporate Governance Under corporate Governance clause of the Listing Agreement(s)

To THe MeMBeRS

THe SARASWATI InduSTRIAL SYndIcATe LIMITed

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyThe Saraswati Industrial Syndicate Limited (the company) during the year ended September 30, 2010 as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges, with the relevant records and documents maintained by theCompany,furnishedtousforourexaminationandthereportonCorporateGovernanceasapprovedbytheBoardofDirectors.

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityofthemanagement.Ourexaminationwas limited toa reviewofproceduresand implementation thereof, adoptedby theCompany forensuring thecomplianceoftheconditionsofCorporateGovernance.Itisneitheranauditnoranexpressionofopiniononthefinancial statements of the Company.

Onthebasisofourexaminationandaccordingtotheinformationandexplanationsgiventous,theconditionsofCorporate Governance as stipulated in Corporate Governance Clause 49 of the Listing Agreement(s) with the stock exchange(s)havebeensubstantiallycompliedwithbytheCompany.

WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiency or effectiveness with which the management has conducted the affairs of the Company.

for S. S. Kothari Mehta & co.CharteredAccountantsFirmRegn.No.000756N(Arun K. Tulsian )PartnerMembershipNo.089907

Place:NoidaDated:�7November,�0�0

�� The Saraswati Industrial Syndicate Limited

AudIToRS’ RepoRTTo the Members The Saraswati Industrial Syndicate Limited

We have audited the attached Balance Sheet of The Saraswati Industrial Syndicate Limited (‘the Company’) as at 30th September, 2010 and also the Profit & Loss Account and the Cash Flow Statement (the Financial Statements) of the Company 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.

WehaveconductedourauditinaccordancewithauditingstandardsgenerallyacceptedinIndia.ThoseStandardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. Webelievethatourauditprovidesareasonablebasisforouropinion.

As required by the Companies (Auditors’ Report) Order, 2003 as amended by the Companies (Auditors’ Report) (Amendment)Order,�004(CollectivelytheOrder)issuedbytheCentralGovernmentofIndiaintermsofSection��7(4A)oftheCompaniesAct,�956andonthebasisofsuchchecksasweconsideredappropriateandaccordingto the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs4and5ofthesaidOrder.

FurthertoourcommentsintheAnnexurereferredtoabove,wereportthat:

a) Wehaveobtainedalltheinformationandexplanationswhich,tothebestofourknowledgeandbelief,werenecessaryforthepurposeofouraudit;

b) In our opinion, proper books of account, as required by law, have been kept by the Company so far as appears from our examination of those books. In respect of the branches not visited by us, Management certified accounts havebeenforwardedtousforthepurposeofourauditwhichhavebeenappropriatelydealtwith.

c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement withthebooksofaccount;

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement, dealt with by this report, comply withtheAccountingStandardsreferredtoinsub-section(3C)ofSection��oftheCompaniesAct,�956.

e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason30thSeptember,�0�0andtakenonrecordby the Board of Directors, we report that none of the directors is disqualified as on 30th September, 2010 from beingappointedasadirectorintermsofclause(g)ofsubsection(�)ofsection�74oftheCompaniesAct,�956.

f) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccountsread with the Accounting policies and Notes thereon 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 generallyacceptedinIndia;

i) InthecaseofBalanceSheet,ofthestateofaffairsoftheCompanyasat30thSeptember,�0�0;

ii) In the case of Profit and Loss Account, of the Profit for the year ended on that date; and

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

for S. S. KoTHARI MeHTA & co. CharteredAccountants FirmRegn.No.000756N

( Arun K. Tulsian )Place:NewDelhi PartnerDated:�7November,�0�0 MembershipNo.89907


AnneXuRe To AudIToRS’ RepoRT(Annexure referred to in our report of even date)

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) Verification of the fixed assets is being conducted based on a programme by the management designed tocoverallassetsoveraperiodofthreeyearsexceptforthecertainbuildingandvehiclesituatedinPakistan(writtendownvalueRs.�/-),which,inouropinion,isreasonablehavingregardtothesizeofthecompanyandnatureofitsbusiness.Nomajordiscrepancieswerenoticedascomparedtobookrecordsandnecessaryadjustmentshavebeencarriedoutinthebooksofaccount.

(c) Fixedassetsdisposedoffduringtheyearwerenotsubstantial.2. (a) The inventory has been physically verified during the year by the management at reasonable intervals

in respect of finished goods, stores and spare parts and raw material. Further, stock in the possession and custody of third parties and stock in transit as at 30th September, 2010 have been verified by the management with reference to confirmation or statement of accounts or correspondence with third parties or subsequent receipt of goods. In our opinion, the frequency of such verification is reasonable.

(b) The procedures for the physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and nature of its business.

(c) Inouropinion,theCompanyismaintainingproperrecordsofinventory.Thediscrepanciesnoticedonphysical verification of inventory as compared to book records were not material and have been properly dealtwithinthebooksofaccount.

3. (a) The company has taken unsecured loans of Rs. 56.50 lacs in the form of fixed deposits from its four Directors andonerelatedparty,theterms&conditionsofwhichare,primafacie,notprejudicialtotheinterestofthecompany.MaximumamountoutstandingduringtheyearandyearendbalanceofsuchloansareRs. 56.50 Lacs. There are no other loans, secured or unsecured, from companies, firms or other parties listedintheregistermaintainedundersection30�oftheCompaniesAct,�956.

(b) Inrespectoftheaboveunsecuredloans,thecompanyisregularinrepaymentoftheprincipalamountandinterestduethereonasperthetermsoftheacceptance.Therearenooverdueamountsattheyearend.

(c) Thecompanyhasgrantedunsecuredloantoitstwosubsidiarycompanieslistedintheregistermaintainedundersection30�oftheCompaniesAct,�956.Apartfromtheseloans,thecompanyhasnotgrantedanyother loans, secured or unsecured, to companies, firms or other parties listed in the register maintained undersection30�oftheCompaniesAct,�956.

(d) The maximum amount outstanding during the year is Rs. 8,343.60 Lacs and year end balances of such loans are Rs.1,539.35 Lacs. In our opinion, the rate of interest and other terms & conditions of such loan areprimafacie,notprejudicialtotheinterestofthecompany.

(e) Inrespectoftheaforesaidloans,theCompanieswereregularinpaymentofinterest.Weareexplainedthattheseloansarerepayableondemandand,therefore,therearenooverdueamountsattheyearend.

4. Inouropinion,andaccordingtotheinformationandexplanationsgiventousduringthecourseofaudit,thereare adequate internal control systems commensurate with size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basisofourexaminationofthebooks&recordsofthecompany,carriedoutinaccordancewiththegenerallyacceptedauditingpracticesinIndia,wehaveneithercomeacrossnorhavewebeeninformedofanyinstanceofmajorweaknessesintheaforesaidinternalcontrolsystems.

5. (a) Tothebestofourknowledgeandaccordingtotheinformationandexplanationsgiventous,weareofopinionthatparticularsofcontractsorarrangementsthatneedtobeenteredintotheregistermaintainedundersection30�oftheCompaniesAct,�956havebeensoentered.

(b) Inouropinion,andaccordingtotheinformationandexplanationsgiventous,thetransactionswithpartiespursuanttothecontractsorarrangementsenteredintointheregistermaintainedunderSection301 of the Companies Act, 1956 and exceeding the values of Rupees five lakhs in respect of each party have been entered into during the financial year, are at prices, which are reasonable, having regard to


theprevailingmarketpriceattherelevanttimewheresuchmarketpricesareavailable.6. Inouropinionandaccordingtoinformationandexplanationsgiventous,theprovisionsofsection58Aand

58AAoranyotherrelevantprovisionsoftheCompaniesAct,�956includingtheCompanies(AcceptanceofDeposit) Rules, 1975 have been complied with in respect of fixed deposits accepted from the public.

7. Inouropinion,theCompanyhasanin-houseinternalauditsystemcommensuratewiththesize&natureofitsbusiness.

8. WehavebroadlyreviewedtheCostAccountingrecords,maintainedbytheCompanypursuanttotheRulesprescribedbytheCentralGovernmentforthemaintenanceofcostrecordsunderclause(d)ofsub-section(�)ofsection�09oftheActandareoftheopinionthat,primafacie,theprescribedaccountsandrecordshavebeenmadeand maintained. We are, however, not required to make a detailed examination of such books and records.

9. (a) Inouropinionandaccordingtotheinformationandexplanationsgiventous,accordingtotherecordsoftheCompany,undisputedstatutoryduesincludingProvidentFund,InvestorEducationandProtectionFund,EmployeesStateInsurance,Incometax,Salestax,Wealth-tax,ServiceTax,CustomDuty,ExciseDuty,Cessandothermaterialstatutorydues,whereverapplicable,havebeenregularlydepositedwiththeappropriateauthoritiesandtherearenosuchundisputedstatutoryduespayableforaperiodofmorethansixmonthsfromthedatetheybecamepayableasat30thSeptember,�0�0.

(b) Accordingtotheinformationandexplanationsgiventousandasperthebooksandrecordsexaminedbyus,therearenoduesofWealthTax,CustomDuty,andIncomeTaxwhichhavenotbeendepositedonaccountofanydispute,exceptthefollowinginrespectofdisputedExciseDuty,SalesTax,ServiceTaxandCessalongwiththeforumwheredisputeispending:

name of the Statute

nature of dues

p e r i o d t o which cases pertain

forum Where dispute is pending Amount (Rs. in Lacs)

CentralExciseAct,�944

ExciseDuty �994-95�00�-08�008-09�008-09�005-�0�003-05

Hon’bleHighCourt,AllahabadCESTAT,NewDelhiCommissioner(Appeal),GurgaonCommissioner(Appeal),NewDelhiAddl.Dy.Commissioner,PanchkulaAddl.Dy.Commissioner,YamunaNagar

8.0059.9��.86�.00

�0.940.06

FinanceAct,�994 ServiceTax �004-06�005-07�008-09�009-�0

CESTAT,NewDelhiCommissioner(Appeal),GurgaonCommissioner(Appeal),NewDelhiAssistantCommissioner,YamunaNagar

6.00��.3�8.364.96

SalesTaxAct SalesTax �000-0��004-05�993-97�996-00�99�-94�000-05�97�-73�005-06�005-06�995-99�976-77�987-96�994-95

Hon’bleHighCourt-AllahabadSalesTaxTribunal,MuzaffarnagarSalesTaxTribunal,OrissaAssessingAuthority(AO,YamunaNagar)AppellantTribunal,WestBengalSalesTaxTribunal,YamunaNagarCommissioner Sales Tax, LucknowCommissioner(Appeal),MuzaffarnagarJointCommissioner(Appeal),MuzaffarnagarAdl.CommissionerofAppeals,YamunaNagarHon’bleHighCourt,AllahabadDyCommissionerofCommercialTaxes,KolkataCommercial Tax Officer, Kolkata

6.�6�4.003�.0�5.�3

�45.006.636.003.00

�0.�7�3.�50.�5

38.006�.00

Local Area DevelopmentTaxAct,�00�

Local Area Tax

�006-07 Hon’bleHighCourt,Punjab&Haryana 6.00

HaryanaStatePollutionControlLaw

WaterCess �99�-93 Hon’bleHighCourt,Punjab&Haryana 87.�4


10. There are no accumulated losses of the Company as at the end of the financial year. There are no cash losses during the financial year and in the immediately preceding financial year.

��. Accordingtotheinformationandexplanationsgiventousandasperthebooksandrecordsexaminedbyus,the Company has not defaulted in repayment of dues to any financial institution or bank.

��. According to the informationandexplanationsgiven tous, theCompanyhasnotgrantedany loansandadvancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.

13. The Company does not fall within the category of Chit fund / Nidhi / Mutual Benefit fund / Society and hence the related reporting requirements of the Order are not applicable.

�4. Accordingtotheinformationandexplanationsgiventous,theCompanyisnotdealingortradinginshares,securities, debentures and other investments and hence the related reporting requirements of the Order are notapplicable.

�5. Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotgivenanyguaranteesforloans taken by others from banks or financial institutions.

�6. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermloansraisedduringtheyearbytheCompanyhavebeenappliedforthepurposeforwhichthesaidloanswereobtained,wherethelendershavestipulatedsuchenduse.

�7. Accordingtotheinformationandexplanationsgiventousandasperthebooksandrecordsexaminedbyus,onanoverallexaminationoftheBalanceSheetofthecompany,thefundsraisedbytheCompanyonshort-termbasishavenotbeenappliedforlong-terminvestment.

�8 TheCompanyhasnotmadeanypreferentialallotmentofsharestopartiesandCompaniescoveredintheregistermaintainedundersection30�oftheCompaniesAct,�956.

�9. Thecompanyhasnotissuedanysecureddebenturesduringtheyearnorarethereanysecureddebenturesoutstandingattheyearend.

�0. TheCompanyhasnotraisedanymoneybywayofpublicissuesduringtheyear.

��. DuringthecourseofourexaminationofthebooksandrecordsoftheCompanycarriedoutinaccordancewiththegenerallyacceptedauditingpracticesinIndia,wehaveneithercomeacrossanyinstanceoffraudonorbytheCompany,noticedandreportedduringtheyear,norhavewebeeninformedofsuchcasebythemanagement.

for S. S. KoTHARI MeHTA & co. CharteredAccountants FirmRegn.No.000756N

( Arun K. Tulsian )Place:NewDelhi PartnerDated:�7November,�0�0 MembershipNo.089907


BALAnce SHeeT As At 30th September, 2010 (Rs. in Lacs)

ScheduleNo.

As At 30.09.2010

AsAt30.09.�009

SouRceS of fundS Shareholders’ funds ShareCapital A 736.95 736.95 Reserves&Surplus B 40,770.24 33,3�6.�6

41,507.19 34,053.��Loan funds Secured Loans C 10,403.77 8,096.57 Unsecured Loans D 7,537.52 5,696.8�

17,941.29 �3,793.39deferred Tax Liability (net) [(ReferNote�3.b)onScheduleIXand 646.14 569.�5 Note4onScheduleX] ToTAL 60,094.62 48,4�5.65AppLIcATIon of fundSfixed assets GrossBlock E 44,708.47 36,0�8.89 Less: Depreciation 15,846.82 �3,037.56 NetBlock 28,861.65 ��,99�.33 CapitalWorkinProgress 1,358.47 30,220.12 �,��.83 �4,��3.�6 Investments F 22,079.46 9,�57.0� current Assets, Loans and Advances Inventories G 36,674.51 �4,67�.�4 SundryDebtors H 52,870.85 4�,397.7� Cash&Bankbalances I 4,059.41 4,434.55 OtherCurrentAssets J 18.85 ��.5� Loans & Advances K 14,070.30 8,3�3.85

107,693.92 79,840.88Less: Current Liabilities and Provisions Current Liabilities L 88,280.17 53,706.5� Provisions M 11,618.71 ��,088.89

99,898.88 64,795.4�NetCurrentAssets 7,795.04 �5,045.47MiscellaneousExpendituretotheextentnotwrittenoff

- -

ToTAL 60,094.62 48,4�5.65Statement on Significant Accounting Policies IXnotes to Accounts X

The Schedules referred to above form an integral part of the Balance Sheet.As per our report of even date.

for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants Asstt.GeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(FirmRegistrationNo.000756N)

Arun K. Tulsian S.K. Khorana Aditya puriPartner ExecutiveDirector&CompanySecretary ManagingDirectorM.No.089907Place:-Noida Vinod K. nagpalDated:�7November,�0�0 Director


pRofIT & LoSS AccounT for The Year ended 30th September, 2010 (Rs. in Lacs) Schedule Year ended Yearended No. 30.09.2010 30.09.�009IncoMe Sale,Servicesandrelatedincome I 180,989.79 �76,530.7� Less : Excise duty 6,181.83 6,539.46 Netsales 174,807.96 �69,99�.�5 Otherincome II 5,149.62 �,6�8.90 Profit from Farm Operations III 5.42 3.�3 Increase/(Decrease)instockofFinishedgoods andWork-in-progress IV 5,136.41 (5,86�.00) ToTAL 185,099.41 �65,75�.�8eXpendITuRe Costofgoodspurchasedforresale(ReferNote�5ofScheduleX) 82,322.99 64,�34.88 Erection&CivilCost 11,874.69 4,688.93 Manufacturingexpenses V 50,252.98 55,030.34 Employeecost VI 13,365.06 ��,�54.40 Administration&Sellingexpenses VII 9,841.60 �6,556.99 InterestandFinancialCharges VIII 2,836.21 3,349.94 Depreciation 3,073.62 �,83�.36 ToTAL 173,567.15 �57,747.84 Profit /(Loss) for the year before Tax 11,532.26 8,004.44 ProvisionforTax -Currenttax((includingWealthTax)-(ReferNote�3.a)onScheduleIX) 3,252.00 �,9�5.00 -Deferredtax((ReferNote�3.b)onScheduleIXandNote4onScheduleX) 76.99 (87.4�) - Fringe Benefit Tax ((Refer Note 13. a) on Schedule IX) - 63.53 Profit /(Loss) after Tax 8,203.27 5,��3.3� Balance in Profit & Loss account brought forward from Last Year 20,315.42 �6,450.38 AmountAvailableforAppropriation 28,518.69 ��,563.70 Appropriations: ProposedDividend 73.70 736.95 InterimDividend 663.25 - CorporateDividendTax(ReferNote�6onScheduleX) 12.24 - TransferredtoGeneralReserve 820.33 5��.33 BalancecarriedtoBalanceSheet 26,949.17 �0,3�5.4� Basic&DilutedEarningsperShare(Rs.) 112.36 68.�0 (ReferNote��onScheduleIXandNote�0onScheduleX)

The Schedules referred to above form anAs per our report of even date integral part of the Profit and Loss Account

for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants Asstt.GeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(FirmRegnNo.000756N)

Arun K. Tulsian S.K. Khorana Aditya puriPartner ExecutiveDirector&CompanySecretary ManagingDirectorM.No.089907

Place:-Noida Vinod K. nagpalDated:�7November,�0�0 Director


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) As at Asat 30.09.2010 30.09.�009

Schedule ‘A’

SHARe cApITAL

Authorised :

85,00,000 Equity Shares of Rs.10/- each

(Previous year 85,00,000 Equity Shares of Rs.10/- each) 850.00 850.00

Issued, Subscribed and paid up :

73,69,540 Equity Shares of Rs.10/- each fully paid up

(Previous year 73,69,540 Equity Shares of

Rs.�0/-each) 736.95 736.95

736.95 736.95

Notes:

1. Issued, Subscribed and Paid up Capital include Equity Shares of Rs. 10/- each allotted without payment of cashinearlieryearsasunder:

equity Shares Equity Shares (nos.) (Nos.)

BonussharesbyCapitalisationofReserves 62,51,910 6�,5�,9�0

UnderSchemesofAmalgamationof

- IndianSugarandGeneral EngineeringCorporation Limited (since dissolved) 69,770 69,770

- ISGEC John Thompson Limited (sincedissolved) 70 70

- Uttar Pradesh Steels Limited (sincedissolved) 9,270 9,�70

CompensatorysharestoPromoter shareholdersinextinguishmentof theirrighttoadditionaldividend 30,100 30,�00

2. 40 Equity Shares of Rs. 10/- each are yet to be allotted by way of Bonus Shares on receipt of fractional certificates, valueofwhichhasbeenshownundercapitalreserve.


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010Schedule ‘B’ReSeRVeS And SuRpLuS ( Rs. in Lacs) AsAt As At 0�.�0.�009 Additions Deductions 30.9.2010CapitalReserve 0.0� - - 0.01 (0.0�) - - (0.0�)CapitalRedemptionReserve �.58 - - 1.58 (�.58) - - (�.58)SecuritiesPremiumAccount 450.�� - - 450.22 (450.��) - - (450.��)ExportAllowanceReserve 6.50 - 6.50* - (6.50) - - (6.50)GeneralReserve ��,54�.43 8�6.83** - 13,369.26 (��,03�.�0) (5��.33) - (��,54�.43)Profit and LossAccountBalance �0,3�5.4� �6,949.�7 �0,3�5.4� 26,949.17 (�6,450.38) (�0,3�5.4�) (�6,450.38) (�0,3�5.4�) 33,316.16 27,776.00 20,321.92 40,770.24 (�8,939.79) (�0,8�6.75) (�6,450.38) (33,3�6.�6)note :*TransferredtoGeneralReserve** Includes Rs. 6.50 Lacs transferred from Export Allowance ReservePrevious year figures are indicated in parenthesis. (Rs. in Lacs) As at AsatSchedule ‘c’ 30.09.2010 30.09.�009SecuRed LoAnS(ReferNote8&�0onScheduleIX)Debentures - -FromBanks:-CashCreditAccounts(ReferNote�) 3,033.54 �,4�9.�7-ExternalCommercialBorrowings(ReferNote�&3) 7,370.23 5,677.30Loans and Advances from subsidiaries - - 10,403.77 8,096.57note :�. Securedbypledge/hypothecationofinventoriesandbyachargeonbookdebts&otherassetsoftheCompany.2. Amount of Rs.4541.23 Lacs (previous year Rs. 5677.30 Lacs) secured by pari passu first charge on the fixed assets

both present & future of unit at Dahej, Gujarat and amount of Rs. 2829.00 Lacs (previous year Nil) secured by first pari passu charges on assets purchased/ to be purchased out of the said loan.

3. Amount repayable within one year Rs. 1728.20 Lacs (Previous year Rs. 1136.08 Lacs).Schedule ‘d’ unSecuRed LoAnS(ReferNote8&�0onScheduleIX)FixedDeposits(ReferNotebelow) 7,537.52 5,696.8�Loans and Advances from subsidiaries - -Short Term Loans and Advances - -Other Loans and Advances - - 7,537.52 5,696.8�note :Includes deposits received from Directors Rs.55. 84 Lacs (Previous year Rs. 40.58 Lacs).

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Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘f’ 30.09.2010 30.09.�009

InVeSTMenTS(ReferNote7onScheduleIX)

non TRAde

Long Term, At cost

Subsidiary companies (unquoted):

19,99,900 (Previous year 19,99,900) Equity Shares of

Rs.10/- each fully paid up of ISGEC Covema Limited 199.99 �99.99

(Including Nil (Previous year Nil) Equity shares held jointly with nominees)


Rs.10/-each fully paid up of ISGEC Exports Limited 10.00 �0.00

(Including 9 (Previous year 9) Equity shares held jointly with nominees)


Rs.10/- each fully paid up of Saraswati Sugar Mills Limited 7,009.99 7,009.99


50,000 (Previous year 50,000) Equity Shares of Rs. 10/- each

fully paid up of ISGEC Engineering & Projects Ltd 5.00 5.00


other companies :

Quoted :

2500 (Previous year 2500 ) Equity

Shares of Rs.10/- each fully paid up of Haryana Oxygen Limited 0.25 0.�5

Less : Provision for diminution in the value of Investment (0.25) (0.�5)

MarketvalueoftheinvestmentNil(PreviousyearNil)

704 Equity Shares of Rs. 10/- each fully paid up of Reliance Industries Ltd. 3.36 3.38

(Previous year 5643 Equity Shares of Rs. 10/- each fully paidup of Reliance Petroleum Ltd.)

Market Value Rs. 6.95 Lacs (Previous year Rs. 7.39 Lacs).

(SeeNote�)

872 (Previous year 872) Equity Shares of Rs. 10/- each 2.46 �.46

fully paid up of Reliance Power Ltd

Market Value Rs. 1.40 Lacs (Previous year Rs.1.46 Lacs).

unquoted : Joint Venture company

80,13,362 (Previous year 80,13,362) Equity Shares of Rs. 10/- each 801.34 80�.34

fully paid up of ISGEC Haco Metal Forming Machinery Pvt. Ltd.

(ReferNote�4onScheduleX)

3� The Saraswati Industrial Syndicate Limited

current, At cost

Mutual funds:

SBISHDFUltraShortFundInstitutionalPlan-DailyDividend 3,011.55 -

(3,00,97,4�0.7670(PreviousyearNil)unitsofRs.�0/-each)

RelianceMonthlyIntervalFund-Series-I-InstitutionalDividendPlan 2,506.83 -

(�5060458.�8�(PreviousyearNil)unitsofRs.�0/-each)

RelianceMonthlyIntervalFund-Series-II-InstitutionalDividendPlan 1,517.43 -

(�5�7�67�.4�6(PreviousyearNil)unitsofRs.�0/-each)

RelianceQuarterlyIntervalFund-Series-II-InstitutionalDividendPlan 900.10 -

(8997099.5�7(PreviousyearNil)unitsofRs.�0/-each)

Kotak Floater Long Term- Daily Dividend 0.47 -

(4,64�.�58(PreviousyearNil)unitsofRs.�0/-each)

KotakQuarterlyIntervalPlanSeries-�-Dividend 1,200.15 -

(��,00�,456.3�8(PreviousyearNil)unitsofRs.�0/-each)

KotakQuarterlyIntervalPlanSeries-8-Dividend 2,000.00 -

(�9,999,600,007(PreviousyearNil)unitsofRs.�0/-each)

ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend 507.85 -

(480,306.700(PreviousyearNil)unitsofRs.�0/-each)

ICICIPrudentialBlendedPlan-B-InstitutionalDividend 501.07 -

(4,830,7��.748(PreviousyearNil)unitsofRs.�0/-each)

KotakIndiaGrowthFund-II(PartlyPaid) - 5.�5

(Nil(Previousyear�75)unitsofRs.�00,000/-each)

RelianceMoneyManagerFund-InstitutionalOption-DailyDividendPlan 1,901.87 �,��9.6�

(�899�7.�8�(Previousyear��8�3.4040)unitsofRs.�000/-each)

(Refernote�3onScheduleX)

22,079.46 9,�57.0�

AggregateBookValueofInvestments:

Unquoted 22,073.64 9,�5�.�8

Quoted 5.82 5.84

22,079.46 9,�57.0�

AggregateMarketValueofQuotedInvestments 8.35 8.85

Note

1: 5643 Equity Shares of Reliance Petroleum Ltd were converted into 352 Equity Shares of Reliance Industries Ltd. on their merger. Subsequently, Reliance Industries Ltd issued 352 Bonus Equity Shares in the ratio of �:�.Reductioninthecostofinvestmentrepresentsamountpaidbytheinvestedcompanytowardsfractionalentitlement.

�: ForsaleandpurchaseofMutualFundinvestmentduringtheyearreferNote�3ofSchedule‘X’.


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘G’ 30.09.2010 30.09.�009InVenToRIeS(ReferNote3onscheduleIX)Raw Materials (including in transit Rs 1660.73 Lacs 12,593.76 7,��6.47Previous year Rs. 278.96 Lacs)Stores and Spare Parts including Loose Tools 3,484.48 �,�53.35(including in transit Rs 7.69 Lacs Previousyear Rs. 39.40 Lacs)Work-in-Progress:a) EngineeringGoods 17,384.34 �3,��9.86b) IngotsandSteelCastings 1,337.32 �,590.47c) Erection 546.34 19,268.00 7�.67 �4,893.00StandingCrops 6.85 7.�6FinishedTradingGoodsinTransit 550.26 �8�.4�FinishedStock:a) Engineeringgoods 770.92 7.63b) IngotsandSteelCastings 0.24 771.16 �.�� 9.75 36,674.51 �4,67�.�4Schedule ‘H’SundRY deBToRS(ReferNote8onScheduleIXandNote�(c)onScheduleX)(unsecured)Debtsoutstandingforaperiodexceedingsixmonths-consideredgood 14,277.78 �0,499.43-considereddoubtful 105.45 �05.45OtherDebts-Consideredgood 38,593.07 3�,898.�9 52,976.30 4�,503.�7Less : Provision for doubtful debts 105.45 �05.45 52,870.85 4�,397.7�notes:Debtorsincludeamountduefromsubsidiarycompany:Saraswati Sugar Mills Ltd. 193.58 �7.60

Schedule ‘I’cASH And BAnK BALAnceS(ReferNote8onscheduleIX)Cashinhand 17.73 �6.4�Cheques in hand 132.03 356.90BalanceswithScheduledBanksin:Current&CashCreditAccounts 1,056.23 3,608.79UnclaimedDividendAccounts 78.52 47.74TermDeposits 1,103.65 �4�.44MarginMoneywithBanks 1,671.25 �6�.�7(againstbankguaranteesandletterofcreditissuedbybanks)Balanceswithotherbanks - - 4,059.41 4,434.55


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) As at Asat 30.09.2010 30.09.�009Schedule ‘J’

oTHeR cuRRenT ASSeTS

(unsecured, considered Good)

InterestAccruedbutnotdueonTermDeposits/MarginMoney 18.85 ��.5�

Interest/DividendAccruedonInvestment - - 18.85 ��.5�

Schedule ‘K’

LoAnS And AdVAnceS

(Refer note 8 on Schedule IX)

(unsecured, except to the extent stated & considered Good)

SecurityDeposits 351.58 330.��

Advancesrecoverableincashorinkindor

forvaluetobereceived 10,261.94 5,538.50

(IncludesurplusGratuityplanassetsoverGratuityactuarial

liability Rs. 266.54 Lacs (Previous year Rs. 320.66 Lacs))

Loan to Subsidiary companies 1,539.35 �,040.40

BalancewithGovernmentDepartmentandOthers 1,917.43 �,404.84

14,070.30 8,3�3.85

note:

Detail of Loan to Subsidiary companies

1. Saraswati Sugar Mills Ltd. 1,141.73 337.85

(Maximumamountdueduringtheyear) (7,548.73) (�46�.67)

2. ISGEC Covema Ltd. 397.62 70�.55

(Maximumamountdueduringtheyear) (794.87) (�,048.93)

DetailofAdvancestoSubsidiarycompanies

(Includedinadvancesrecoverableincashorinkind)

1. Saraswati Sugar Mills Ltd. - -

(Maximumamountdueduringtheyear) ( - ) (�05.43)

2. ISGEC Covema Ltd. - -

(Maximumamountdueduringtheyear) ( - ) (48�.53)

3. ISGEC Exports Ltd. - -

(Maximumamountdueduringtheyear) ( - ) (748.�6)


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘L’ 30.09.2010 30.09.�009cuRRenT LIABILITIeS(ReferNote8onScheduleIX)SundryCreditors(ReferNote5onscheduleX) DuestoMicro&SmallEnterprises 112.57 5�.�5 DuetoOtherCreditors 39,169.94 �4,499.�5AdvancesfromCustomers 46,366.31 �6,993.75InvestorEducationandProtectionFund: UnpaidDividends 78.52 47.74 UnpaidMaturedDeposits 119.78 ��4.5� Interestaccruedontheabove 35.91 �6.9�Otherliabilities 1,692.92 �,�89.�4SecurityandOtherDeposits 9.40 6.30InterestAccruedbutnotdueonloans 694.82 6�6.44 88,280.17 53,706.5�note:� SundryCreditorsinclude: a) Balance in Director’s Current Account Rs 0.02 Lacs (Previous year Rs 0.21 Lacs). Maximum amount outstanding during the year Rs. 3.80 Lacs (Previous year Rs.1.96 Lacs) b) Rs.443.92 Lacs (Previous year 859.33 Lacs) payable as commission to Directors. c) Amount due to subsidiary company, Saraswati Sugar Mills Ltd Rs. 24.40 Lacs (Previous year 22.34 Lacs)� AmountsunderInvestorEducationandProtectionFundarenotduefordeposit.Schedule ‘M’pRoVISIonS[ReferNotes9(c),9(d),and�3(a)and�5onScheduleIXandNotes6(b)&�5onScheduleX]ProvisionforTaxation: a) ProvisionforIncomeTax 1,711.75 �,�85.06 Less : Advance Tax & TDS 1,393.86 �,�4�.66 317.89 943.40 b) ProvisionforTaxonProposedDividend 12.24 330.13 - 943.40ProposedDividend 73.70 736.95Provision for Leave encashment 794.18 59�.�4ProvisionforPension 2,313.39 �,938.89ProvisionforContingencies,Performance 8,107.31 6,877.4�Warranties/AfterSalesService 11,618.71 ��,088.89


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs in Lacs)

Year ended YearendedSchedule ‘I’ 30.09.2010 30.09.�009SALe, SeRVIceS And ReLATed IncoMe[ReferNote6onScheduleIXandNote�7onScheduleX)SaleofEngineeringGoods 169,047.08 �68,479.66Saleofscrapandwaste 674.42 636.68Erection,Commissioningandotherreceipts 10,448.66 6,�63.93ExportIncentives 819.63 �,�50.44 180,989.79 176,530.71Schedule ‘II’oTHeR IncoMe[ReferNotes6and8onScheduleIX]DividendIncomeonInvestmentsLong term - Non Trade-Subsidiarycompany 1,419.98 - -Otherscompanies 0.10 -Current-NonTrade-MutualFunds 298.33 1,718.41 �6.�3 �6.�3Interest- On Loan to Subsidiary companies 275.32 ��4.39-InterestonFixedDeposits 66.66 57.��-Others 69.10 411.08 88.30 �69.80(includes TDS Rs. 41.58 Lacs)(Previous year Rs.50.78 Lacs)Sundrybalanceswrittenback 247.86 �64.45Excessprovisionofearlieryears 479.49 386.39writtenback(includesprovisionfordoubtfuldebts written back Rs. 0.03 Lacs (Previous year Rs.191.27 Lacs))Profit on Sale of Fixed Assets 35.51 ��.00InsuranceClaimReceipts 21.04 �3.60Profit on sale of stores 2.23 -ForeignExchangeFluctuation 1,624.59 -(NetofexpenseofRs.�856.08(PreviousyearRs.Nil))MiscellaneousIncome. 609.41 647.53 5,149.62 �,6�8.90


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) Year ended YearendedScHeduLe `III’ 30.09.2010 30.09.�009

pRofIT fRoM fARM opeRATIonS

Income:SaleofFarmProduce 12.05 6.78MiscellaneousIncome - 0.34 12.05 7.��

eXpendITuRe:Salaries,WagesandBonus 3.39 3.�3CultivationExpenses 2.10 �.30MiscellaneousExpenses 0.19 0.54RepairsandMaintenance: - MachineryandTractors 0.17 0.�� - Building 0.29 0.�0Depreciation 0.08 0.09 6.22 6.47(Increase)/DecreaseinStock 0.41 (�.48) 6.63 3.99Profit carried to Profitand Loss Account 5.42 3.�3

Schedule’IV’

IncReASe/(decReASe) In STocK of fInISHed GoodS And WoRK In pRoGReSS (Refer note 3 on Schedule IX)

closing Stock :

FinishedGoods 771.16 9.75

Work-in-Progress 19,268.00 �4,893.00

20,039.16 �4,90�.75

Less: opening Stock:

FinishedGoods 9.75 69.85

Work-in-Progress 14,893.00 �0,693.90

14,902.75 �0,763.75

Increase/(Decrease)inStockof

FinishedGoods&Work-in-Progress 5,136.41 (586�.00)


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs in Lacs)

Year ended YearendedSchedule ‘V’ 30.09.2010 30.09.�009

MAnufAcTuRInG eXpenSeS(ReferNotes�5,�8and�9onScheduleX)Rawmaterials&Components 35,532.66 4�,�30.46ConsumptionofStoresandSpares 5,426.02 4,�0�.�6Power&Fuel 1,673.33 �,4�0.8�OtherExpenses 7,536.06 8,�90.39ExciseDutyonAccountofIncrease/(Decrease)inStockofFinishedGoods 84.91 (�.58) 50,252.98 55,030.34

Schedule ‘VI’

eMpLoYee coST[ReferNote9onScheduleIXandNote6onScheduleX]Salaries,Wages&Bonus 12,225.45 9,953.45ContributiontoProvidentandOtherFunds 775.68 905.�3WorkmenandStaffWelfareExpenses 363.93 �95.7� 13,365.06 ��,�54.40


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010 (Rs. in Lacs) Year ended YearendedSchedule ‘VII’ 30.09.2010 30.09.�009

AdMInISTRATIon And SeLLInG eXpenSeS(ReferNote8onScheduleIXandNotes9,��&��onScheduleX)Rent 193.81 �68.5�Insurance 139.84 �40.�5RatesandTaxes 253.87 �8�.88Royalty 334.84 358.7�ElectricityandWaterCharges 124.79 �38.07Repair&Maintenanceof: -Buildings 301.40 �63.�� -Plant&Machinery 348.41 �79.57 -Others 33.39 �9.03TravellingExpenses 2,369.59 �,790.9�Donation 6.65 �.53Office and Miscellaneous Expenses* 2,614.66 �,396.94ManagerialRemuneration 1,279.17 900.07Directors’Commission/Fee 5.60 3.�3Packing,ForwardingandTransportationExpenses 662.97 �,�38.36CommissiontoSellingAgentsandOthers 901.36 �,584.�0RebateandDiscount 237.82 �45.59BadDebtsWrittenOff 14.24 �7.83Loss on Assets Sold / Written Off 13.94 �0.76Loss/Provision on Sales/Disposal/Diminution/ in Value of 5.25 0.58Investments/StoresForeignExchangeFluctuation - 6,9�5.9�(NetofincomeofRs.Nil(PreviousyearRs.3796.3�lacs)) 9,841.60 �6,556.99*includes provision made for Doubtful Debts Rs. Nil (Previous year Rs.95.05 Lacs )

Schedule’VIII’

InTeReST And fInAncIAL cHARGeS[ReferNote�0onScheduleIX]OnFixedDeposits 808.34 5��.�4On Term Loans from Banks 543.09 403.�9On Other Loans/ Working Capital Borrowings 26.74 �,40�.73BankCharges 1,458.04 �,0�3.68 2,836.21 3,349.94


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010

Schedule `IX’

Statement on Significant Accounting Policies1 Basis of Accounting

TheFinancialStatementsoftheCompanyarepreparedunderthehistoricalcostconventionandinaccordancewith applicable Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as amended) andtherelevantprovisionsoftheCompaniesAct,�956.TheCompanyfollowsmercantilesystemofaccountingandrecognisesincome&expenditureonaccrualbasistotheextentmeasurableandwherethereiscertaintyof ultimate realisation in respect of income. Accounting policies not specifically referred to otherwise, are consistentandinconsonancewiththegenerallyacceptedaccountingprinciples.

2 use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires managementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosures of contingent liabilities at the date of the financial statements and the results of operations during thereportingperiod.Althoughtheseestimatesarebaseduponmanagement’sbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromtheseestimates.Differencebetweentheactualresultsandestimatesarerecognisedintheperiodinwhichtheresultsareknown.

3 Inventories

RawMaterials,Stores&Sparesarevaluedat lowerofcost,calculatedonaweightedaveragebasisornetrealisable value. However items held for use in the production are not written below cost if the finished goods inwhichthesewillbeincorporatedareexpectedtobesoldatorabovecost.

Work-in-ProgressandFinishedGoodsarevaluedat lowerof costornet realisablevalue. Cost in caseoffinished goods and work-in-progress includes material cost and applicable manufacturing and administrative overheads. Value of finished stock is inclusive of excise duty.

Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslessestimatedcostsofcompletionandestimatedcostsnecessarytomakethesale.

Standingcropsarevaluedatestimatedcostofmaterial&labour.

Profit included in closing inventory on account of inter-unit transfers is eliminated to the extent practicable.

4 fixed Assets

a) Tangible Assets.

Fixedassets are stated at their cost less accumulateddepreciation. The costof anasset comprises itspurchasepriceandanydirectlyattributablecostofbringingtheassettoworkingconditionforitsintendeduse.Costsincurredonup-gradationoftheComputerHardwarearecapitalised.Capitalsparesdirectlyattributable to the fixed assets are capitalised with the related assets.

b) Intangible Assets

Intangible assets are recognised on the basis of recognition criteria specified in Accounting StandardAS-�6.

Costs incurred on acquisition of specialised software & technical know how are capitalised.

Theassetsareamortisedoveraperiodnotexceedingtenyearsonastraightlinebasis.


5 depreciation

Depreciation is provided on fixed assets at the rates and in the manner prescribed in Schedule XIV of the CompaniesAct,�956asperthewrittendownvaluemethodexceptinrespectofcertainPlant&Machinerywhich are depreciated as per the straight line method. Capital spares directly attributable to the specific fixed assetsaredepreciatedwiththecostoftheassets.

Assets costing not more than Rs.5,000/- are fully depreciated in the year of their acquisition.

6 Revenue Recognition

Revenueisrecognisedincaseoftraded&manufacturedproductsondespatchofgoodsfromthefactory/otherlocationswhensubstantialrisks&rewardsofownershiparetransferredtothebuyer.

Revenueincaseoferection&commissioningjobscarriedoutisrecognisedonstageofcompletionasperthetermsofrelatedagreements/joborders.

Salesarenetofinter-unittransfersexceptwheresucheliminationisnotpracticable.

InsuranceClaims,exportincentives,escalation,etc.areaccountedforasandwhentheamountsrecoverablecanbereasonablydeterminedasbeingacceptabletotheconcernedauthorities/parties.

7 Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined for each category separately. Long-term investments are carried atcostonindividualinvestmentbasis.However,provisionfordiminutioninvalueismadetorecogniseadeclineotherthantemporaryinthevalueoftheinvestmentsincaseoflongterminvestments.

8 foreign currency Transactions

(i) Initial Recognition

Foreigncurrencytransactionsarerecordedinthereportingcurrency,byapplyingtotheforeigncurrencyamounttheexchangeratebetweenthereportingcurrencyandtheforeigncurrencyonthedateofthetransaction.

(ii) conversion

Foreigncurrencymonetary itemsarereportedusing theclosingrate.Non-monetary itemswhicharecarriedintermsofhistoricalcostdenominatedinaforeigncurrencyarereportedusingtheexchangerateatthedateofthetransaction;andnon-monetaryitemswhicharecarriedatfairvalueorothersimilarvaluationdenominatedinaforeigncurrencyarereportedusingtheexchangeratesthatexistedwhenthevaluesweredetermined.

(iii) exchange differences

Exchangedifferencesarisingonamonetary item that, in substance, formspartof thecompany’snetinvestmentinanon-integralforeignoperationisaccumulatedinaforeigncurrencytranslationreservein the financial statements until the disposal of the net investment, at which time they are recognised as incomeorasexpenses.

Exchangedifferencesarisingonthesettlementofmonetary itemsnotcoveredabove,oronreportingsuch monetary items of company at rates different from those at which they were initially recordedduring the year, or reported in previous financial statements, are recognized as income or as expenses in theyearinwhichtheyarise.

9 Employee Benefits

As per AS-15 notified by Companies (Accounting Standards) Rules, 2006, (as amended) the provision for employee benefits is charged on accrual basis as under:


a) provident fund :

TheCompanyoperatesaProvidentFundTrustforitsemployeeswherecontributionsaredepositedonthebasisofservicesrenderedbytheemployeesandareexpensedasandwhenincurred.

b) Gratuity :

The Company operates a Gratuity Fund Trust which in turn has taken Group Gratuity cum Life Assurance policy with the Life Insurance Corporation of India for all the employees. Provision for liability on account of gratuity being defined benefit plan, is determined as per acturial valuation and charged to Profit & Loss Account.

c) Leave encashment:

ProvisionforleaveencashmentismadeinrespectofeligibleemployeesasperactuarialvaluationdoneattheBalanceSheetdate.

d) pension

Liability on account of pension payable to employees covered under Company’s pension scheme is accountedforonaccrualbasis.

10 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapitalizedaspartofthecostoftherespectiveasset.Allotherborrowingcostsareexpensedintheperiodtheyoccur.Borrowingcostsconsistofinterestandothercoststhatanentityincursinconnectionwiththeborrowingoffunds.

11 Leases

Payments made under Leases for land, being in the nature of operating leases, are charged to Profit and Loss Account on straight line basis as per terms of the Lease Agreement over the period of lease. Payments made under cancellable operating leases for other assets are charged to Profit & Loss Account as per respective lease agreements.

12 earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders(afterdeductingpreferencedividendsandattributabletaxes)bytheweightedaveragenumberof equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period isadjustedforeventsofbonusissue,bonuselementinarightsissuetoexistingshareholders,sharesplit,andreversesharesplit(consolidationofshares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

13 Taxation

TaxExpense/(TaxSaving)istheaggregateofcurrentyeartaxanddeferredtaxcharged(orcredited)totheProfit and Loss Account for the year in accordance with Accounting Standard- 22- “Accounting for Taxes on Income” notified by Companies (Accounting Standards) Rules, 2006 and measured at the tax rates that have beenenactedorsubstantivelyenactedbytheBalanceSheetdate.

a) Current Year Charge & Fringe Benefit Tax

Provision for taxation for the company’s financial year ended September 30th, 2010, being different from tax year, has been determined based on the results for the six months ended March, �0�0(assessment year 2010-11) based on actual tax return filed and for the six months ended September 2010 (assessmentyear�0��-��)basedonresultfortheperiod.Theultimateliabilityfortheassessmentyear


�0��-��howeverwillbedeterminedonthetotalincomeoftheCompanyfortheyearendingMarch3�,�0��.

The provision for taxation is based on assessable profits of the Company as determined under the Income TaxAct,�96�.TheCompanyalsoprovidesforsuchdisallowancesmadeoncompletionofassessmentspendingappeals,asconsideredappropriate,dependingonthemeritsofeachcase.

b) deferred Tax

In accordance with Accounting Standard AS-22 “Accounting for Taxes on Income” notified by Companies (Accounting Standards) Rules, �006, (as amended), deferred taxes resulting from timing differencesbetween book and tax profits are accounted for at tax rate to the extent the timing difference are expected tobecrystallised.Deferredtaxassetsonaccountofunabsorbedlosses&unabsorbeddepreciationarerecognisedtotheextentthereisvirtualcertaintyofrealisingsuchassetsagainstfuturetaxableincome.

14 Impairment of Assets:

AsateachBalanceSheetdate,thecarryingamountofassetsistestedforimpairmentsoastodetermine

a) the provision for impairment loss, if any, required or

b) the reversal, if any, required of impairment loss recognised in previous periods.

Impairmentlossisrecognisedwhenthecarryingamountofanassetexceedsitsrecoverableamount.

Recoverableamountisdetermined

a) inthecaseofanindividualasset,atthehigherofthenetsellingpriceandthevalueinuse.

b) In the case of a cash generating unit (a group of assets that generates identified independent cash flows), atthehigherofthecashgeneratingunit’snetsellingpriceandthevalueinuse.

Value in use is determined as the present value of estimated future cash flows from the continuing use of anasset/cashgeneratingunitandfromitsdisposalattheendofitsusefullife.

15 provisions, contingent Liabilities & contingent Assets

Provision for future contingencies and liquidated damages is considered, where applicable. Provisions are recognisedforliabilitiesthatcanbemeasuredonlybyusingasubstantialdegreeofestimation,if

a) theCompanyhasapresentobligationasaresultofapastevent,

b) a probable outflow of resources is expected to settle the obligation and

c) theamountoftheobligationcanbereliablyestimated.

Contingent Liability is disclosed in the case of

a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation

b) a possible obligation, unless the probability of outflow of resources is remote.

ContingentAssetsareneitherrecognised,nordisclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

16 commodity Hedging

Risk associated with fluctuations in the prices of the raw material are minimised by hedging on futures market. Theresultofmetalhedgingcontracts/transactionsarerecordedattheirsettlementandcharged/creditedtoProfit and Loss Account.

17 cash and cash equivalents

Cash and Cash Equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and fixed deposits with banks, excluding investment in mutual fund.


Schedules annexed to and forming part of the Accounts for the year ended 30th September, 2010

Schedule ‘X’ notes to Accounts As at As at 30.09.2010 30.09.2009 (Rs in lacs) (Rs in lacs)1 contingent Liabilities: a) ClaimsagainsttheCompanynotacknowledgedas debts(includingsalestaxunderdispute) 843.36 86�.46 b) Guaranteesfurnishedbythebankersonbehalfofthe Companyandcounterindemnityfurnishedbythe Companytobankersforthesameamount. 87,596.26* 49,309.47* *IncludesPerformanceBankGuaranteesgivenon behalfofsubsidiarycompanyISGEC Covema Limited 276.25 ��.�7 c) BillsdiscountedwithBanks/FinancialInstitutions outstandingattheyearend - 34�.57 d) BondsexecutedinfavourofPresidentofIndia againstEPCGlicence 1,740.35 �,9�7.452 Letters of credit outstanding at year end 9,702.80 3,668.473 Estimatedamountofcontractsremainingtobeexecutedon CapitalAccountandnotprovidedfor(netofadvances) 3,137.89 340.�04 TheCompanyestimatestheDeferredtax(charge)/creditfortheyearusingtheapplicabletaxratebasedon

the impact of timing differences between items in the financial statements and the estimated taxable income forthecurrentyear.ThemovementinprovisionforDeferredtaxisgivenbelow: (Rs in lacs)

element of deferred Tax As at credit / As at credit / As at 01.10.2008 (charge) 01.10. 2009 (charge) 30.09.2010 during the year during the year Depreciation (�,476.80) (�3.90) (�,490.70) (�84.95) (�,675.65) OtherTimingDifferences 8�0.�4 �0�.3� 9��.55 �07.96 �,0�9.5� NetDeferredTax (656.56) 87.4� (569.�5) (76.99) (646.�4)5 Micro, Small & Medium enterprises As at As at 30.09.2010 30.09.2009 (Rs in lacs) (Rs in lacs) a) AmountRemainingUnpaidtoanySupplier PrincipalAmount 112.57 5�.�5 Interestduethereon nIL NIL b) InterestpaidunderMicro,SmallandMedium Enterprises(Development)Act,�006 0.02 0.�� c) InterestDue(Otherthan5(b)) nIL NIL d) Interestaccruedandunpaid nIL NIL e) Interestdueandpayabletillactualpayment nIL NIL The information has been given in respect of such vendors to the extent they could be identified as “Micro,

Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises (Development) Act,�006”onthebasisofinformationavailablewiththeCompany.


6 Employee Benefits:

As per Accounting Standard -15 “Employee Benefits”, the disclosure of employee benefits as defined in AccountingStandardisgivenbelow:-

a) Defined Contribution Plan:

The Company has recognised, in the Profit and Loss Account, expenses for the following Defined ContributionPlan:

2009-10 2008-09 particulars (Rs in lacs) (Rs in lacs)

ProvidentFund 600.39 494.�7

EmployeesStateInsurance 72.07 7�.08

Total 672.46 565.�5

b) Defined Benefits Plan :

The liability for Employee Gratuity and Leave Encashment is determined on actuarial valuation using projectedunitcreditmethod.Theobligationsareasunder:-

(Rs in lacs)

description Gratuity Leave (funded) encashment (non-funded)

2009-10 2008-09 2009-10 2008-09

i. change in present value of obligation

a. PresentValueofObligationatthe 1,840.10 �,793.�9 592.24 548.�� beginningoftheyear

b. Interestcost 147.21 �43.64 47.44 43.86

c. Currentservicecost 159.06 �33.94 147.76 �09.38

d. Benefits paid (107.63) (�74.�3) (169.67) (�4�.�7)

e. Actuarial(gain)/loss 128.05 (56.64) 176.41 33.�4

f. PresentValueofObligationattheend 2,166.79 �,840.�0 794.18 59�.�4 oftheyear

ii. change in the fair Value of plan Assets

a. FairValueofPlanAssetsatthe 2,160.76 �,9�8.47 n.A. N.A. beginningoftheyear

b. ExpectedReturnofPlanAssets 184.75 �53.48 - -

c. Contributions 78.47 309.�4 - -

d. Benefits paid (107.63) (�74.�3) - -

e. Actuarial Gain / (Loss) on Plan Assets 116.97 (46.�9) - -

f. FairValueofPlanAssetsattheend 2,433.32 �,�60.76 - - oftheyear


(Rs in lacs)

description Gratuity Leave (funded) encashment (non-funded)

2009-10 2008-09 2009-10 2008-09

iii. Reconciliation of fair Value of Assets and obligations

a. FairValueofPlanAssetsattheend 2,433.32 �,�60.76 - - oftheyear b. PresentValueofObligationattheend 2,166.79 �,840.�0 794.18 59�.�4 oftheyear c. AmountrecognisedintheBalanceSheet 266.53 3�0.66 (794.18) (59�.�4)

iv. Expenses recognised in the Profit & Loss

a. CurrentServiceCost 159.06 �33.94 147.76 �09.38 b. InterestCost 147.21 �43.64 47.44 43.86 c. ExpectedReturnonPlanAssets (184.75) (�53.48) - - d. Actuarial (Gain) / Loss 11.08 (�0.35) 176.41 33.�4 e. Expenses recognised in the Profit & Loss 132.60 ��3.75 371.62 �86.38

v. Actuarial Assumptions

a. DiscountRate(perannum) 8.00% 8.00% 8.00% 8.00%

b. EstimatedRateofreturnonPlan 8.55% 8.00% - -

Assets(p.a)

c. RateofEscalationinSalary(p.a) 5.50% 5.50% 5.50% 5.50%

c) Amounts for the current and previous four periods in respect of Gratuity & Leave encashment are as follows:*

particulars Gratuity (funded) Leave encashment (non-funded)

2009-10 2008-09 2007-08 2009-10 2008-09 2007-08

Defined Benefit Obligation 2,166.79 �,840.�0 �,793.�9 794.18 59�.�4 548.��

PlanAssets 2,433.32 �,�60.76 �,9�8.47 - - -

Surplus / (Deficit) 266.53 3�0.66 ��5.�8 (794.18) (59�.�4) (548.��)

Experienceadjustmenton (128.05) 56.64 36.0� (176.41) (33.�4) (�38.06) Plan Liabilities

Experienceadjustmenton PlanAssets 128.86 (46.�9) - - - -

*Disclosure in respect of previous two annual periods as required by Accounting Standard - 15 is not presentedasthecompanyadoptedtheAccountingStandardin�007-08.

7 Segment Reporting

The Company has only one segment of Engineering Business identified in accordance with guiding principles enunciated in Accounting Standard AS–�7 ‘Segment Reporting’, hence the segment information is notapplicable


8 Related party Transactions

InaccordancewiththeAccountingStandardon“RelatedPartyDisclosures”(AS-�8),thedisclosuresinrespectof Related Parties and transactions with them, as identified and certified by the management, are as follows:

I names of Related parties and description of relationship

HoldingCompany None

Subsidiaries Saraswati Sugar Mills Limited ISGEC Covema Limited ISGEC Exports Limited ISGEC Engineering & Projects Ltd.

Joint Venture ISGEC Haco Metal Forming Machinery Pvt. Ltd. (ReferNoteNo.�5)

Entities over which Directors and their Yamuna Syndicate Limited relatives can exercise significant influence Kamla Puri Charitable Trust KamlaPuriCharitableFoundation BlueWaterEnterprises

KeyManagementPersonnel Mr.AdityaPuri(ManagingDirector) Mrs.NinaPuri(WholetimeDirector)

RelativesofKeyManagementPersonnel Mr.RanjitPuri(Chairman),(HusbandofMrs.Nina PuriWholetimeDirector&FatherofMr.AdityaPuri ManagingDirector) Mrs.TanupriyaPuri(wifeofMr.AdityaPuri ManagingDirector)

II Related party Transactions

2009-10 2008-09 (Rs in lacs) (Rs in lacs) a) purchase of goods -Subsidiaries 17.01 4�.86 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel 120.02 ��8.�6 can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 137.04 �60.0� b) Sale of goods -Subsidiaries 306.68 3�.38 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel - - can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 306.68 3�.38


2009-10 2008-09 (Rs in lacs) (Rs in lacs) c) Rendering of services -Subsidiaries 4.96 ��.83 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel 16.92 0.�7 can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 21.88 �3.�0

d) Services received -Subsidiaries 0.03 �.46 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel - - can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 0.03 �.46

e) Rent received -Subsidiaries - - -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel 0.38 - can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - -

Total 0.38 - f) Rent paid -Subsidiaries - - -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel 50.41 39.70 can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - -

Total 50.41 39.70 g) Remuneration to directors -Subsidiaries - - -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel - - can exercise significant influence -Keymanagementpersonnel 1,279.17 903.�0 -RelativesofKeymanagementpersonnel 1.05 -

Total 1,280.22 903.�0


2009-10 2008-09 (Rs in lacs) (Rs in lacs) h) Interest paid -Subsidiaries - - -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel - - can exercise significant influence -Keymanagementpersonnel 1.37 �.39 -RelativesofKeymanagementpersonnel 2.86 �.86 Total 4.23 4.�5

i) Guarantees given on behalf of -Subsidiaries 276.25 ��.�7 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel - - can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 276.25 ��.�7

j) Interest Received -Subsidiaries 275.32 ��4.39 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel - - can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 275.32 ��4.39

k) Amount payable as at year end -Subsidiaries 24.40 - -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel 9.29 8.73 can exercise significant influence -Keymanagementpersonnel 455.09 870.78 -RelativesofKeymanagementpersonnel 26.24 �6.�4 Total 515.02 905.75 l) Amount receivable as at year end -Subsidiaries 1,732.93 �,040.70 -AssociatesandJointVenture - - -Entitiesoverwhichkeymanagementpersonnel 11.52 �0.�� can exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 1,744.45 �,050.8�


As at As at 30.09.2010 30.09.2009 (Rs in lacs) (Rs in lacs) m) Investment as at year end -ISGEC Covema Ltd. 199.99 �99.99 -ISGEC Exports Ltd 10.00 �0.00 -Saraswati Sugar Mills Ltd. 7,009.99 7,009.99 -ISGEC Engineering & Projects Ltd. 5.00 5.00 Total 7,224.98 7,��4.98

9 In accordance with Accounting Standard (AS-19) on ‘Leases’, the company has taken various residential /commercial premises and plant and machinery under cancellable operating leases. Lease rent charged to Profit & Loss Account for the year are: a) Residentialpremises 46.55 43.�5 b) CommercialPremises 144.15 ��.87 c) Plant&Machinery 3.11 3.40 Total 193.81 �68.5�

10 In accordance with Accounting Standard (AS-20) on ‘earnings per Share’ the following table reconciles the numerator and denominator used to calculate Basic and diluted earnings per Share: a) Net Profit / (Loss) available to Equity Shareholders (Rs. in lacs) (aftercurrenttax). 8,280.26 5,0�5.9� b) Number of Equity Shares outstanding during the year for the purposeofcalculationofEarningPerShare 7369540 7369540 c) Nominal value of Equity Share (In Rs.) 10.00 �0.00 d) Basic&DilutedEarningperShare(InRs.) 112.36 68.�0

11 Auditor’s Remuneration included in miscellaneous expenses.

a) AuditFee 5.00 5.00 b) Other Certification Work 1.28 �.45 c) ReimbursementofExpenses 1.37 �.09

12 Managerial Remuneration

I To the Whole time directors: a) Salary 31.80 3�.80 b) ContributiontoProvidentFund,GroupGratuity FundandSuperannuationFund 5.82 8.59 c) Other Perquisites 1.56 �.68 d) Commission 1,240.00 858.00 1,279.17 900.07 II To other directors: a) Commission 1.50 �.33 b) SittingFee 4.10 �.80 5.60 3.�3 Total Managerial Remuneration 1,284.77 903.�0


CalculationasperSection349oftheCompaniesAct,�956inrespectofManagerialRemunerationisasfollows: As at As at

30.09.2010 30.09.2009 (Rs in lacs) (Rs in lacs) Profit for the year before tax 11,532.26 8,004.44 Add:ProvisionfordoubtfulDebts - 95.3� Loss on sale of fixed assets 13.94 �0.76 Loss on diminution in value of Investments 5.25 - 11,551.45 8,��0.5� Less:Profit on sale of fixed assets 35.51 ��.00 Profit as per Section 349 11,515.94 8,099.5� Add:ManagerialRemuneration 39.17 4�.07 CommissiontoExecutiveDirectors 1,240.00 858.00 CommissiontoNonExecutiveDirectors 1.50 �.33 SittingFeestoNonExecutiveDirectors 4.10 �.80 Net Profit as per Section 198 12,800.71 9,00�.7� Maximumremunerationpayablerestrictedto: -WholetimeDirectors�0%ofabove 1,280.07 900.�7 -OtherDirectors�%ofabove 128.01 90.03note : The Company depreciates fixed assets based on estimated useful lives implicit in Schedule XIV to the CompaniesAct,�956.

13 details of investment in Mutual fund purchased & sold during the year:

name of the fund 2009-10 2008-09 no. Amount no. Amount (Rs in lacs) (Rs in lacs)

SBI-MagnumInstaCashFund

-ACQUIRED* 26868210.37 4,500.51 ��3457�4.7 �,900.�7

-SOLD 26868210.37 4,500.51 ��3457�4.7 �,900.�7

SBI-UltraShortTermFund

-ACQUIRED* 22082420.82 2,209.57 �905478�.3 �,906.5�

-SOLD 22082420.82 2,209.57 �905478�.3 �,906.5�

Kotak Liquid Institutional Premium

-ACQUIRED* 79334311.81 9,701.08 NIL NIL

-SOLD 79334311.81 9,701.08 NIL NIL

Kotak Floater Long Term

-ACQUIRED* 91937392.78 9,267.11 NIL NIL

-SOLD 91937392.78 9,267.11 NIL NIL

KotakQuarterlyIntervalPlanSeries-�

-ACQUIRED* 10001174.34 1,007.31 NIL NIL

-SOLD 10001174.34 1,007.31 NIL NIL


name of the fund 2009-10 2008-09 no. Amount no. Amount (Rs in lacs) (Rs in lacs)

KotakQuarterlyIntervalPlanSeries-6

-ACQUIRED* 10000000.00 1,011.18 NIL NIL

-SOLD 10000000.00 1,011.18 NIL NIL

Reliance Liquid Fund-Treasury Plan-Retail Option

-ACQUIRED* nIL nIL 5�33589.7� 800.07

-SOLD nIL nIL 5�33589.7� 800.07

Reliance Liquid Fund-Treasury Plan-Institutional

-ACQUIRED* 148507732.43 22,702.86 NIL NIL

-SOLD 148507732.43 22,702.86 NIL NIL

RelianceMoneyManagerFund-Institution

-ACQUIRED* 1758806.95 17,610.04 404540.�8 4,050.00

-SOLD 1758806.95 17,610.04 404540.�8 4,050.00

ICICI Liquid Super Institutional Plan

-ACQUIRED* 6499275.37 2,000.29 NIL NIL

-SOLD 6499275.37 2,000.29 NIL NIL

ICICIFlexibleIncomePlan

-ACQUIRED* 4729731.26 500.22 NIL NIL

-SOLD 4729731.26 500.22 NIL NIL

ICICIFlexibleIncomePlanPremium

-ACQUIRED* 4369078.25 4,619.64 NIL NIL

-SOLD 4369078.25 4,619.64 NIL NIL

Total

-ACQUIRED* 406088134.38 75,129.79 36038635.98 8,656.75

-SOLD 406088134.38 75,129.79 36038635.98 8,656.75

* Investments Acquired, during the year, includes additional units received against dividend reinvested, if any.

2009-10 2008-09 (Rs in lacs) (Rs in lacs)14 As per Accounting Standard, AS – 26,the assets acquired during

the year have been capitalised and amortised over estimated useful life as follows:-

a) Software Licences (Useful Life 5 years) 198.53 �03.7�

b) Technical Know How (Useful Life 10 years) 3,809.60 NIL


15 disclosure in terms of Accounting Standard AS – 29 on provisions, contingent Liabilities and contingent Assets:-

2009-10 2008-09 (Rs in lacs) (Rs in lacs) I Movement for provision for Liabilities:

a) OpeningBalance 6,877.41 5,50�.�7

b) Providedforduringtheyear 2,837.75 �,587.80

c) Usedduringtheyear 1,054.11 57�.34

d) Reversedduringtheyear 553.74 64�.��

e) ClosingBalance 8,107.31 6,877.4�

Timing of outflow/uncertainties Outflow on expenses incurred/ crystallisation of dues dependsuponclaimstobemadebyCustomers&others.

II provisions made during the year have been accounted for under the following heads

a) Costofgoodspurchasedforresale 2,76 7.70 �,307.7�

b) Manufacturingexpenses 70.05 �80.09

16 pre-operative expenses forming part of capital work in progress are as under :-

Amountbroughtforwardfromlastyear 68.02 �7.45

Add:Expenditureincurredduringtheyear

Salaries&Wages 11.39 �9.89

Depreciation 0.26 0.33

Repair&Maintenance - -

ElectricityExpenses - -

TravellingExpenses 3.72 5.�9

BankCharges 0.07 0.03

ProfessionalFees - -

Interest on Loan - -

ExchangeFluctuations - -

Rates&Taxes - -

Rent - -

Others 30.58 �5.�3

Total 114.04 68.0�

Less:Capitalized during the year 89.10 -

AmountcarriedforwardtoCapitalworkinprogress 24.94 68.0�

54 The Saraswati Industrial Syndicate Limited17

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55The Saraswati Industrial Syndicate Limited17

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18 Raw Material consumed:

2009-10 2008-09 Type of Materials units Quantity Value Quantity Value

IronandSteel MT 29,491.31 15,326.12 �07�8.66 �6,647.�7 Non-ferrous MT 362.00 209.12 �88.00 ��9.79 M.S.Scrap MT 5,964.97 1,182.74 4736.37 �,094.59 Componentsissuedforjobs 18,814.68 �3,358.8�

Total 35,532.66 4�,�30.46

19 Imported and Indigenous Raw Material, Spare parts, components and Stores consumed:

(Value in Rs lacs) 2009-10 2008-09 a) Raw Materials : % Value % Value

Imported 35.67% 12,673.23 44.88% �8,506.�� Indigenous 64.33% 22,859.43 55.��% ��,7�4.34 Total 100.00% 35,532.66 �00.00% 4�,�30.46

b) Spare parts : Imported 3.32% 180.31 4.69% �93.87 Indigenous 96.68% 5,245.71 95.3�% 3,937.07 Total 100.00% 5,426.02 �00.00% 4,�30.94

2009-10 2008-09 (Rs in lacs) (Rs in lacs)

20 Value of Imports on c.I.f. Basis: RawMaterials 11,752.20 ��,�63.64 SpareParts 2,803.64 �,607.54 Goodsforresale 1,386.24 �,095.36 CapitalGoods 1,022.76 90�.44

21 earnings in foreign exchange:

ExportofGoods&ServicesonF.O.Bbasis 28,893.11 5�,48�.86

22 expenditure in foreign currency (cash Basis) TravellingExpenses 160.41 �5�.�7 Royalty 267.58 �85.65 Brokerage&Commission 932.63 �,376.35 Interest on ECB Loan (for foreign remittance) 129.06 �66.57 Technical Know how & fixed assets 1,220.73 - Others 3,550.51 �,643.30

Total 6,260.92 4,6�3.�4

23 dividend paid in foreign currency DividendPaid nIL NIL No. of Equity Shares held by Non Resident Shareholders 522485 508900 No.ofNonResidentShareholders 17 6


24 Interests in Joint Ventures:

After the close of the year, ISGEC Haco Metal Forming Machinery Pvt. Ltd. ceased to be a joint venture, as the companyhasexcercisedtheoptiontoexitthejointventureintermsoftheMemorandumofUnderstandingenteredintowithHacoN.V.Belgium

25 foreign currency exposures :

TheCompanyhadenteredintoswaps/forwardcontractswhicharenotintendedfortradingorspeculativepurposes but for hedge purposes, to establish the amount of reporting currency required or available at the settlementdateofcertainpayablesandreceivables.

As at As at 30.09.2010 30.09.2009 (Rs in lacs) (Rs in lacs)

a) The particulars of forward contracts entered into hedging purpose outstanding as at year end are as under:

i) Forreceivables 5,632.78 ��,700.56

ii) Forloans 7,370.23 5,677.30

iii) Forhedginginterestpaymentsonloans 55.19 3�.4�

b) unhedged foreign currency exposures as at year end are as under:

i) Receivables 2,319.44 3,443.4�

26 The dividend of Rs 1419.98 lacs has been received during the year from the subsidiary company Saraswati Sugar Mills Ltd. In terms of specific provisions contained in Income Tax Act, 1961, Dividend distribution tax of Rs 241.33 lacs paid by subsidiary company on the aforesaid dividend has been set off by the company against such tax payable on final dividend for the financial year 2008-09 and interim dividend paid for financial year 2009-10.

27 Previous year figures have been regrouped/ recast wherever considered necessary to conform to current year classification.


cASH fLoW STATeMenT for the year ended 30th September, 2010 (Rs. In Lacs)

Year ended Year ended 30.09.2010 30.09.2009

A. Cash flow from Operating activities:

Net (loss)/profit before tax but after exceptional 11,532.26 8,004.44

/extraordinary items

Adjustments for:

Depreciation 3,073.6� �,83�.36

InterestExpense �,836.�� 3,349.94

InterestIncome (4��.08) (�69.80)

IncomefromInvestment-Dividends (�,7�8.4�) (�6.�3)

(Profit)/Loss on Fixed Assets sold (Net) (21.57) (0.24)

Debts/AdvancesWrittenoff �4.�4 �7.83

ProvisionforBad&DoubtfulDebts - 95.05

Liability no longer required written back (727.35) (650.84)

Investmentwrittenoff 5.�5 0.58

Operating profit before working capital changes 14,583.17 13,353.20

Adjustments for changes in working capital :

-(INCREASE)/DECREASEinSundryDebtors (�0,487.37) �,407.43

-(INCREASE)/DECREASEinOtherReceivables (5,756.45) 50�.86

-(INCREASE)/DECREASEinInventories (��,00�.�7) ��,�57.03

-INCREASE/(DECREASE)inTrade,Other 36,989.�8 (6,�30.7�) PayablesandProvisions

cash generated from operations 23,326.26 21,289.81

-Taxes(Paid)/Received(NetofTDS) (3,877.50) (�,90�.07)

net cash from operating activities 19,448.76 19,388.75

B. Cash flow from Investing Activities

Purchase of fixed assets (9,282.42) (2,860.40)

Proceeds from Sale of fixed assets 123.41 50.94

Sale/(Purchase)ofInvestments (��,8�7.69) (�,��.8�)

DividendReceived �,7�8.4� �6.�3

net cash used in investing activities (20,268.29) (3,996.15)


C Cash flow from Financing activities:

Proceeds/(Repayment)fromSecuredloans �,307.�0 (��,708.74)

Proceeds/(Repayment)ofunsecuredloans �,840.70 �,�38.64

InterestReceived(Revenue) 4�4.75 �95.67

InterestPaid (�,748.83) (3,�6�.5�)

Dividend&DividendTaxPaid (�,369.43) (�69.05)

Net cash used in financing activities 444.39 (12,605.00)

net Increase/(decrease) in cash & cash equivalents (375.14) 2,787.59

cash and cash equivalents as at 30.09.2009 4,434.55 1,646.95


cash and cash equivalents comprise

Cash, Cheques & Drafts (in hand) and Remittances in transit 149.76 373.31

Currentaccounts(dividendaccount) 78.5� 47.74

BalancewithScheduledBanks �,056.�3 3,608.79

TermDeposit&MarginMoneywithBanks

(against Bank Guarantees & Letter of Credit issued by Bank) 2,774.90 404.71

4,059.41 4,434.55

notes :

1 The above Cash flow statement has been prepared under the indirect method setout in Accounting Standard-3.

� Figuresinbracketsindicatecashoutgo.

3 Previous period figures have been regrouped and recast wherever necessary to conform to the current period classification.

4 Following non cash transactions have not been considered in the cash flow statement. -Taxdeductedatsource(onincome)

Asperourreportofevendate. for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants Asstt.GeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(FirmRegn.No.000756N)


Place:Noida Vinod K. nagpalDated:�7November,�0�0 Director


Balance Sheet Abstract and Company’s General Business ProfileI. Registration details RegistrationNo. 05-00097 StateCode 05 BalanceSheetDate 30/09/�0�0II. capital Raised during the year (Amount in Rs.Lacs)

PublicIssue RightsIssue NIL NIL BonusShares PrivatePlacement NIL NILIII. position of Mobilisation and deployment of funds (Amount in Rs.Lacs)

Total Liabilities Total Assets 60,094.6� 60,094.6� SourcesofFunds Paid-upCapital Reserve&Surplus 736.95 40,770.�4 Secured Loans Unsecured Loans �0,403.77 7,537.5� Deferred Tax Liability 646.�4 ApplicationofFunds NetFixedAssets Investments 30,��0.�� ,079.46 NetCurrentAssets 7,795.04IV. performance of company (Amount in Rs.Lacs)

Turnover(GrossRevenue) TotalExpenditure �79,963.00 �68,430.74 Profit Before Tax Profit After Tax ��,53�.�6 8,�03.�7 EarningperShareinRs. RateofDividend ��.36 �00%V. Generic name of Three principal product/Services of company (as per monetary terms) ItemCodeNo.(ITCCode) 84�989�0 Product Description PRESSURE VESSELS ItemCodeNo.(ITCCode) 84383090 ProductDescription SugarMachinery ItemCodeNo.(ITCCode) 840��00 Product Description BOILERS

for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants Asstt.GeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(FirmRegn.No.000756N)




STATeMenT puRSuAnT To SecTIon 212 of THe coMpAnIeS AcT, 1956ReLATInG To SuBSIdIARY coMpAnIeS

�. Name of the subsidiary companies ISGEC Covema Ltd ISGEC Exports Ltd Saraswati Sugar ISGEC Engineering Mills Ltd & Projects Ltd.

� Financialyearofthesubsidiary Yearended Yearended Yearended Yearended companies 3�stMarch,�0�0 3�stMarch,�0�0 30thSept,�0�0 30thSept,�0�0

3 Holding Company’s interest Holds 19,99,900 Equity Holds 1,00,000 equity Holds 70,99,900 Holds 50,000 equity shares of shares of Rs.10 each equity shares of shares of Rs. 10 Rs.�0eachout outoftheissued& Rs.�0each eachoutofissued of the issued & subscribed equity out of the issued & subscribed equity subscribed share capital of & subscribed equity share capital of equity share capital 1,00,000 equity share capital of 50,000 equity of 20,00,000 equity share 70,99,900 equity shares shares. shares

(Rs.inlacs) (Rs.inlacs) (Rs.inlacs) (Rs.inlacs)

4 Totaladvancesmadebytheholding companytothesubsidiarycompanies stood as at the close of financial year’sended3�stMarch,�0�0of ISGEC Covema Limited & ISGEC Exports Limited and as at the close of financial year ended 30th September 2010 585.77 NIL 1,141.73 NIL

5 NetAggregateamountofsubsidiary’s Profit/(Losses) so far as they concern membersofholdingcompanyandnot dealtwithintheholdingcompany’s account:

i) ForsubsidiaryFinancialYear; 37.45 8.46 (��8.��) 0.0�

ii) Forsubsidiary’sPreviousFinancial yearssinceitbecamesubsidiary: 55.8� 9.80 5,7�7.6� 0.�8

6 Netaggregateamountofsubsidiary’s Profit/(Losses) so far as they concern membersofholdingcompanyanddealt withintheholdingcompany’saccount

i) For subsidiary Financial Year; Nil Nil Nil NIL

ii) Forsubsidiary’sPreviousFinancial years since it became subsidiary Nil Nil Nil NIL

7 As the financial year of the subsidiary companydoesnotcoincidewiththe financial year of the holding company, informationu/s��(5)oftheCompanies Act,�956isgivenbelow:-

a) Isthereanychangesintheholding company’sinterestinthesubsidiary companiesbetweentheendofthe financial year of the subsidiary companiesandtheholdingcompany No No N.A. N.A.

b) Isthereanymaterialchangeswhich haveoccurredbetweentheendof financial year of subsidiary companies and end of financial year ofholdingcompany


Sanjay Kumar Kishore chatnani S.K. Khorana Vinod K. nagpal Aditya puri Asstt.General Sr.VicePresident ExecutiveDirector Director ManagingDirector Manager(Accounts) (Finance&Accounts) &Co.SecretaryPlace:Noida Dated:�7November,�0�0

i) FixedAssetsofsubsidiarycompany No No N.A. N.A. ii) Investmentsofsubsidiarycompany No No N.A. N.A. iii) Moneylentbythesubsidiarycompany No No N.A. N.A. iv) Totaladvancesmadebythe holdingcompanyason30th September, 2010 (end of financial year of holding company) 397.63 NIL N.A. N.A. (Thereisnomaterialchangeinother borrowingofsubsidiarycompanies)


conSoLIdATed RepoRTSAnd

AccounTSfoR

THe YeAR ended30th SepTeMBeR, 2010


AudIToRS RepoRT on conSoLIdATed fInAncIAL STATeMenTSof THe SARASWATI InduSTRIAL SYndIcATe LTd.

And ITS SuBSIdIARIeSThe Board of directors,

THe SARASWATI InduSTRIAL SYndIcATe LTd.

We have audited the attached consolidated Balance Sheet of THE SARASWATI INDUSTRIAL SYNDICATE LTD., its subsidiaries (“the SISL group”) as at 30th September, 2010, the consolidated Profit and Loss account and the consolidated Cash Flow statement (the consolidated financial statements) for the year then ended. These consolidated 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 generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are prepared, in all material respects, in accordance with identified financial reporting framework and are free of material misstatements.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthe 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 providesareasonablebasisforouropinion.

We did not audit the financial statements of three subsidiaries, ISGEC Engineering & Project Limited (IEPL), ISGEC Covema Limited (ICL) and ISGEC Export Limited (IEL), whose adjusted financial statements reflect total assets of Rs.��50.77lacsandtotalliabilitiesofRs.�787.65lacsasat30thSeptember,�0�0andtotalrevenuesofRs.�7�0.�6lacs and total expenses of Rs. 1652.18 lacs for the year then ended. The financial statements of ICL and IEL have been made and audited upto 31st March, 2010, significant group transactions between the date of these financial statements and that of company’s financial statement have been given effect to. These financial statements have beenauditedbyotherauditorswhosereportshavebeenfurnishedtous,andouropinion,insofarasitrelatestotheamountsincludedinrespectofthesesubsidiaries,isbasedsolelyonthereportoftheotherauditors.TheaccountsfortheyearhavebeenpreparedwithoutconsolidatingJointVentureaccountsforthefactsstatedinnote�(b)onSchedule X of these financial statements.

We report that the consolidated financial statements have been prepared by the company in accordance with the requirements of Accounting Standard (AS) -21, ‘Consolidated Financial Statements’ notified by Central Government under the Companies (Accounting Standards) Rules, 2006 and on the basis of the separate audited financial statements of the SISL Group included in the Consolidated Financial Statements

Based on our audit and on consideration of the reports of other auditors on separate financial statements and on the other financial information of the subsidiaries, in our opinion and to the best of our information and according to the explanations given to us, the attached consolidated financial statements give a true and fair view in conformity withtheaccountingprinciplesgenerallyacceptedinIndia:


a) in the case of Consolidated Balance Sheet, of the consolidated state of affairs of The SISL Group as at 30thSeptember,�0�0;

b) in the case of Consolidated Profit & Loss account, of the consolidated results of operations of The SISL Group fortheyearendedonthatdate;and

c) in the case of Consolidated Cash Flow Statement, of the consolidated cash flows of The SISL Groupfortheyearendedonthatdate.

for S. S. Kothari Mehta & co.CharteredAccountants

FirmRegn.No.000756N

(Arun K. Tulsian)Place:NewDelhi PartnerDated:�7November,�0�0 MembershipNo.089907


conSoLIdATed BALAnce SHeeT as at 30th September, 2010

(Rs. in Lacs) As at Asat Schedule 30.09.2010 30.09.�009SouRceS of fundS no.Shareholders’ funds ShareCapital A 736.95 736.95 Reserves&Surplus B 47,082.47 40,883.59 47,819.42 4�,6�0.54Loan funds Secured Loans c 12,681.15 ��,99�.�6 Unsecured Loans d 9,380.95 7,��7.45 22,062.10 �9,��8.6�deferred Tax Liability(net) 1,840.96 �,93�.4�[Refernote�5(b)onScheduleIXandnote7onScheduleX] ToTAL 71,722.48 6�,67�.57AppLIcATIon of fundSfixed assets GrossBlock e 66,545.24 58,648.70 Less: Depreciation 23,942.73 �0,�47.59 NetBlock 42,602.51 38,50�.�� CapitalWorkinProgress 1,816.13 44,418.64 �,384.46 39,885.57Investments f 15,159.83 4,808.35current Assets, Loans and Advances Inventories G 44,385.97 �7,790.04 SundryDebtors H 54,785.10 45,06�.37 Cash&Bankbalances I 4,657.38 8,070.8� OtherCurrentAssets J 28.09 54.�3 Loans & Advances K 14,045.04 8,596.88 117,901.58 89,573.34Less: current Liabilities and provisions Current Liabilities L 93,329.02 59,�66.07 Provisions M 12,430.38 ��,43�.45 105,759.40 7�,597.5�NetCurrentAssets 12,142.18 �7,975.8�MiscellaneousExpenditure(totheextentnotwrittenofforadjusted) 1.83 �.83ToTAL 71,722.48 6�,67�.57Statement on Significant Accounting Policies IXnotes to Accounts X The Schedules referred to above form an integral part of the Balance Sheet.As per our report of even date.for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants AssistantGeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(firm’s Registration no. 000756n)

(Arun K. Tulsian) S.K.Khorana Aditya puriPartner ExecutiveDirector&CompanySecretary ManagingDirectorMembershipNo.89907Place:Noida Vinod K. nagpalDated:�7November,�0�0 Director


conSoLIdATed pRofIT & LoSS AccounT for the year ended 30th September, 2010 (Rs. in Lacs) Schedule Year ended Yearended no. 30.09.2010 30.09.�009IncoMe Sale,Servicesandrelatedincome I 216,151.16 ��9,55�.54 Less : Excise duty 7,643.10 8,446.39 208,508.06 ��,�06.�5 Otherincome II 4,593.88 �,0�4.�8 Profit from Farm Operations III 3.55 3.�3 Increase/(Decrease)instockofFinishedgoods andWork-in-progress IV 9,941.83 (�7,��.46) ToTAL 223,047.32 �95,9��.�0eXpendITuRe Costofgoodspurchasedforresale 82,036.26 64,�34.88 (Refernote�8(II)onScheduleX) Erection&CivilCost 13,370.42 7,564.�6 Manufacturingexpenses V 83,338.42 68,454.95 Employeecost VI 15,983.84 �3,7�7.7� Administration&Sellingexpenses VII 10,626.04 �7,6�6.�4 InterestandFinancialCharges VIII 3,623.65 4,678.4� Depreciation 4,167.72 4,��.8� ToTAL 213,146.35 �80,�78.�8Profit /(Loss) for the year before tax 9,900.97 �5,643.9� Provisionforcurrenttax(includingWealthTax) 3,415.07 4,936.05 (Refernote�5(a)onScheduleIX) Provisionfordeferredtax (129.18) 495.3� (Refernote�5(b)onScheduleIXandnote7onScheduleX) Fringe benefit tax 0.00 70.84 (Refernote�5(a)onScheduleIX) Profit /(Loss) after tax 6,615.08 �0,�4�.7� Balance in Profit & Loss account broughtforwardfromlastyear 27,162.20 �9,04�.09 PriorperiodlossofJointVenturereversed 332.99 0.00 [Refernote�(b)ofScheduleX] Amountavailableforappropriation 34,110.27 �9,�83.8� ProposedDividend 73.70 736.95 InterimDividend 663.25 0.00 CorporateDividendTax 12.24 �4�.33 (Refernote��onScheduleX) TransferredtoGeneralreserve 820.33 �,043.33 BalancecarriedtoBalanceSheet 32,540.75 �7,�6�.�0 Basic/Diluted Earnings/(Loss) per share (Rs.) 88.01 �44.34 (ReferNote�3onScheduleX)Statement on Significant Accounting Policies IXnotes to Accounts X The Schedules referred to above form an integral part of the Profit and Loss Account.As per our report of even date.for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants AssistantGeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(Firm’sRegn.No.000756N)

(Arun K. Tulsian) S.K.Khorana Aditya puriPartner ExecutiveDirector&CompanySecretary ManagingDirectorMembershipNo.89907Place:Noida Vinod K. nagpalDated:�7November,�0�0 Director


Schedules annexed to and forming part of the consolidated Balance Sheet as at 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘A’ 30.09.2010 30.09.�009

SHARe cApITALAuthorised :85,00,000 Equity Shares (Previous year 85,00,000) 850.00 850.00ofRs.�0/-each

Issued, Subscribed and paid up :

73,69,540 Equity Shares (Previous year 73,69,540) 736.95 736.95ofRs.�0/-eachfullypaidup 736.95 736.95

notes:

i) Issued, Subscribed and Paid up Capital include Equity Shares of Rs. 10/- each allottedwithoutpaymentofcashinearlieryearsasunder:

equity Shares Equity Shares (nos.) (Nos.)

BonussharesbyCapitalisationofReserves 62,51,910 6�,5�,9�0 UnderSchemesofAmalgamationof - IndianSugarandGeneral Engineering Corporation Limited 69,770 69,770 (sincedissolved) - ISGEC John Thompson Limited (sincedissolved) 70 70 - Uttar Pradesh Steels Limited (sincedissolved) 9,270 9,�70 CompensatorysharestoPromotor shareholdersinextinguishmentof theirrighttoadditionaldividend 30,100 30,�00

ii) 40 Equity Shares of Rs. 10/- each are yet to be allotted by way of Bonus Shares on receipt of fractional certificates, valueofwhichhasbeenshownundercapitalreserve.


Schedules annexed to and forming part of the consolidated Balance Sheet as at 30th September, 2010Schedule ‘B’ ( Rs. in Lacs) Asat As atReSeRVeS And SuRpLuS 0�.�0.�009 Additions Deductions 30.09.2010CapitalReserve 0.0� - - 0.01 (0.0�) (-) (-) (0.01)CapitalRedemptionReserve �.58 - - 1.58 (�.58) (-) (-) (1.58)SecuritiesPremiumAccount 450.�� - - 450.22 (450.��) (-) (-) (450.22)ExportAllowanceReserve 6.50 - 6.50** 0.00 (6.50) (-) (-) (6.50)GeneralReserve �3,�63.08 8�6.83 - 14,089.91 (��,��9.75) (�,043.33) (-) (13,263.08)Profit and Loss Account Balance 27,162.20 32,540.75* 27,162.20 32,540.75[RefernoteNo.�(c)ofScheduleX] (�9,04�.09) (�7,�6�.�0) (�9,04�.09) (27,162.20) 40,883.59 33,367.58 �7,�68.70 47,082.47 (3�,7�0.�5) (�8,�05.53) (�9,04�.09) (40,883.59)* Includes Rs.332.99 Lacs elimination of prior period loss in joint venture Company M/s ISGEC Haco Metal

Forming Machinery Private Limited as it has ceased to be Joint Venture Company.** TransferredtoGeneralReserve.note :-Previous year figures are indicated in parenthesis. (Rs. in Lacs) As at AsatSchedule ‘c’ 30.09.2010 30.09.�009SecuRed LoAnS[Refernote�0onScheduleIX]Debentures 0.00 0.00FromBanksandFinancialInstitutions:- CashCreditAccounts(ReferNote�&4) 3,033.54 �,606.39- Term Loans (Refer Note 2, 5 & 6)) 2,277.38 3,707.47- ExternalCommercialBorrowings(ReferNote3&5) 7,370.23 5,677.30Interestaccruedanddueontheaboveloan 0.00 0.00Otherloans 0.00 0.00 12,681.15 ��,99�.�6notes:-�. Securedbypledge/hypothecationofinventories&byachargeonbookdebts&otherassetsoftheCompany

excluding those mortgaged / charged in favour of the financial institutions.�. SecuredbyresidualmortgageonimmovablepropertiesoftheCompanylocatedatYamunanagar,bothpresent

andfutureandmortgage/hypothecationofmovableassets(Saveandexceptbookdebtsandinventorieschargedin favour of company’s bankers for working capital requirements).

3. Amount of Rs.4,541.23 Lacs (Previous year Rs.5,677.30 Lacs) secured by pari passu first charge on fixed assets, both present and future, of unit at Dahej, Gujarat and amount of Rs.2,829 Lacs (Previous year Nil) secured by first pari passu charge on assets purchased/ to be purchased out of the said loan.

4. Securedbysecondchargeonimmovablepropertiesofthecompany,bothpresentandfutureandmortgage/hypothecationofmovableassets.

5. Amount repayable within one year Rs.3,186.92 Lacs (Previous year Rs. 2,198.74Lacs).6. Term loan of Nil (Previous year Rs.587.10 Lacs) is secured by exclusive charge on fixed assets (present & future),

movable & immovable plant & machinery and other fixed assets and equitable mortgage of land & building.Schedule ‘d’unSecuRed LoAnS[Refernote�0onScheduleIX]FixedDeposits 9,023.95 7,��7.45SugarDevelopmentFund(Forcanedevelopment) 357.00 0.00Short Term Loans and Advances 0.00 0.00Other Loans and Advances 0.00 0.00 9,380.95 7,��7.45Note : Fixed deposits include deposits received from directors Rs.60.84 Lacs (Previous year Rs.45.58 Lacs).

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Schedules annexed to and forming part of the consolidated Balance Sheet as at 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘f’ 30.09.2010 30.09.�009InVeSTMenTS[Refer note 7 on Schedule IX ]non-Trade Investments :Long Term, At costunquoted:Post Office National Saving Certificate (Unquoted) 0.60 0.60(PledgedassecuritywithvariousGovernmentDepartments)other companies:Quoted :2,500 (Previous year 2,500) Equity Shares of Rs.10/- each fully paid up of Haryana Oxygen Ltd. 0.25 0.�5Less : Provision for diminution in the value of Investment [MarketvalueNil(PreviousyearNil)] (0.25) (0.�5)704 Equity Share of Rs. 10/-each fully paid up of Reliance Industries Ltd. 3.36 3.38( Previous year 5,643 Equity Shares of Reliance Petroleum Ltd.)[Market value as on 30.09.10 Rs.6.95 Lacs (Previous year Rs. 7.39Lacs)] (See Note 1 )872 (Previous year 872) Equity Shares of Rs.10/- each fully paid up of Reliance Power Ltd. 2.46 �.46[Market value as on 30.09.10 Rs.1.40 Lacs (Previous year Rs. 1.46Lacs)]2,65,000 (Previous year 2,65,000) Equity Shares of Rs.10/- each fully paid up of DCM Shriram Industries Ltd. 304.75 304.75[Market value as on 30.09.10 Rs.230.28 Lacs (Previous year Rs.405.45 Lacs)]unquoted: Joint Venture company80,13,362 (Previous Year Nil) Equity Shares of Rs. 10/- each ofISGEC HACO Metal Forming Machinery Private Limited [Refernote�(b)onScheduleX] 801.34 0.00current, At costMutual funds:- SBISHFUltraShortTermFund 0.00 609.63 [Nil,(Previousyear60,93,049.�0)unitsofRs.�0/-each]- SBI-SHDF-UltraShortFundInstitutionalPlan-DailyDividend 3,011.55 0.00 [3,00,97,4�0.7670,(PreviousyearNil)unitsofRs.�0/-each]- RelianceMonthlyIntervalFundSeriesI-InstitutionalDividendPlan 2,506.83 0.00 [2,50,60,458.182, (Previous year NIL) units of Rs.10/- each]


- RelianceMonthlyIntervalFundSeriesII-InstitutionalDividendPlan 1,517.43 0.00 [1,51,71,672.416, (Previous year NIL) units of Rs.10/- each]- RelianceQuartelyIntervalFundSeriesII-InstitutionalDividendPlan 900.10 0.00 [89,97,099.527, (Previous year NIL) units of Rs.10/- each]- RelianceMoneymanagerFund-RetailOption 0.00 50.59 [Nil,(Previousyear5,054.0�)unitsofRs.�,000/-each]- RelianceMoneymanagerFund-InstitutionalOption-DailyDividendPlan 1,901.87 3,83�.69 [�,89,9�7.�8�,(Previousyear�,��,8�3.4040)unitsofRs.�,000/-each]- Kotak Floater Long Term Daily Dividend 0.47 0.00 [4,642.158, (Previous year NIL) units of Rs.10/- each]- KotakQuarterlyIntervalPlanSeriesI-Dividend 1,200.15 0.00 [1,20,01,456.318, (Previous year NIL) units of Rs.10/- each]- KotakQuarterlyIntervalPlanSeries8-Dividend 2,000.00 0.00 [1,99,99,600.007, (Previous year NIL) units of Rs.10/- each]- KotakIndiaGrowthFund-II(Partlypaid) 0.00 5.�5 [Nil,(Previousyear�75)unitsofRs.�,00,000/-each]- ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend 507.85 0.00 [4,80,306.700, (Previous year NIL) units of Rs.10/- each]- ICICIPrudentialBlendedPlanB-InstitutionalDividend 501.07 0.00 [48,30,712.748, (Previous year NIL) units of Rs.10/- each] [Refernote�5onScheduleX] 15,159.83 4,808.35Aggregate Book Value of Investments :Unquoted 14,849.26 4,497.76Quoted 310.57 3�0.59 15,159.83 4,808.35AggregateMarketValueofQuotedInvestments �38.63 4�4.30note 1: 5,643 Equity Shares of Reliance Petroleum Ltd. were converted into 352 Equity Shares of Reliance

Industries Ltd. on their merger. Subsequently, Reliance Industries Ltd. issued 352 Bonus Equity Shares intheratioof�:�.ReductioninthecostofinvestmentrepresentsamountpaidbytheinvesteeCompanytowardsfractionalentitlement.

note 2:ForsaleandpurchaseofMutualFundinvestmentduringtheyearreferNote�7onSchedule‘X’.


Schedules annexed to and forming part of the consolidated Balance Sheet as at 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘G’ 30.09.2010 30.09.�009InVenToRIeS[Refer note 3 on Schedule IX]RawMaterials 12,593.76 7,�63.79(Including in transit Rs.1,660.73 Lacs,Previous year Rs.278.96 Lacs)StoresandSpareParts 4,005.26 �,8��.69(Including in transit Rs.7.69 Lacs,Previous year Rs.39.40Lacs)Work-in-Progress:i) Sugar 25.77 ��.07ii) Engineeringgoods 17,384.34 �3,3��.35iii) IngotsandSteelCastings 1,337.32 �,590.47iv) ErectionContractsinprogress 546.34 19,293.77 �47.67 �5,08�.56StandingCrops 6.85 7.�6FinishedStock:i) Sugar 6,882.03 �,990.38ii) IngotsandSteelcastings 0.24 �.��iii) Molasses 282.88 �98.8�iv) Engineeringgoods 770.92 7,936.07 5�.0� �,343.33Finishedtradinggoodsintransit 550.26 �8�.4� 44,385.97 �7,790.04Schedule ‘H’SundRY deBToRS[Refer note 8 on Schedule IX andnote 1(e) on Schedule X](unsecured)Debtsoutstandingforaperiodexceedingsixmonths- consideredgood 15,158.56 ��,644.37- considereddoubtful 186.51 �88.36OtherDebts-Consideredgood 39,626.54 33,4�7.00 54,971.61 45,�49.73Less : Provision for doubtful debts 186.51 �88.36 54,785.10 45,06�.37


Schedules annexed to and forming part of the consolidated Balance Sheet as at 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘I’ 30.09.2010 30.09.�009cASH And BAnK BALAnceS[Refer note 8 on Schedule IX]Cashinhand 30.81 �7.89Cheques in hand 352.72 656.�8WithScheduledBanksin:CurrentAccounts 1,367.48 3,86�.�6UnclaimedDividendAccounts 78.52 47.74TermDeposits 1,156.60 3,��5.48MarginMoneywithBanks(againstBankGuarantees 1,671.25 �6�.�7and Letter of Credit issued by banks)BalanceswithotherBanks 0.00 0.00 4,657.38 8,070.8�Schedule ‘J’oTHeR cuRRenT ASSeTS(unsecured, considered Good)Interest/Dividendaccruedonnon-tradeinvestments 9.24 0.�7InterestaccruedbutnotdueonTermDeposits 18.85 54.06 28.09 54.�3Schedule ‘K’LoAnS And AdVAnceS(unsecured, except to the extent stated & considered Good)[Refer note 8 on Schedule IX]SecurityDeposits 394.07 376.8�Advancesrecoverableincashorinkindorforvaluetobereceived 11,048.20 6,466.65(Seenotebelow)BalancewithGovt.Depts.andothers 1,986.92 �,5�3.�6ClaimsReceivable 615.85 �48.09MATCreditentitlement 0.00 8�.�6 14,045.04 8,596.88note:Include surplus Gratuity plan assets over actuarial liability Rs.266.54 Lacs (Previous year Rs.320.67Lacs).


Schedules annexed to and forming part of the consolidated Balance Sheet as at 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘L’ 30.09.2010 30.09.�009cuRRenT LIABILITIeS[Refer note 8 on Schedule IX]Sundrycreditors(Refernote8onScheduleX)DuestoMicro,Small&MediumEnterprises 112.57 5�.�5Others 42,912.26 �8,7��.96Advancesfromcustomers 46,573.51 �7,449.36InvestorEducationandProtectionFund: Unpaiddividend 78.52 47.74 UnpaidMaturedDeposits 187.72 �48.48 Interestaccruedontheabove 55.72 33.�3Otherliabilities 2,420.36 �,8��.74Securityandotherdeposits 120.61 75.55Interestaccruedbutnotdueonloans 867.75 8�6.96 93,329.02 59,�66.07notes:�. SundryCreditorsinclude: a) Balance in Director’s Current Account Rs.0.02 Lacs (Previous year Rs.0.21 Lacs). Maximum amount

outstanding during the year Rs.3.80 Lacs (Previous year Rs.1.96 Lacs). (b) Rs.443.92 Lacs (Previous year Rs.859.33 Lacs) payable as commission to Directors.�. AmountsunderInvestorEducation&ProtectionFundarenotduefordeposit.

Schedule ‘M’pRoVISIonS[Refer notes 9(c), 9(d), 13(a) and 15 on Schedule IX and notes 9(b) & 14 on Schedule X]ProvisionforTaxation 1,814.47 4,088.�5Less : Advance Tax & TDS 1,394.68 �,849.66 419.79 �,�38.49ProvisionforTaxonProposedDividend 12.24 432.03 �4�.33 �,479.8�Provision for Leave encashment 902.35 70�.�5ProvisionforPension 2,875.00 �,499.��ProvisionforGratuity 39.99 �34.�3ProvisionforContingencies,PerformanceWarrantiesand 8,107.31 6,879.98AfterSalesServiceProposedDividend 73.70 736.95 12,430.38 ��,43�.45


Schedules annexed to and forming part of the Consolidated Profit & Loss Account for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘I’ 30.09.2010 30.09.�009SALe, SeRVIceS And ReLATed IncoMe [Refer note 6 on Schedule IX]Sugar Business: Sugar 29,745.61 37,566.�8Molasses 3,316.53 �,�8�.60OtherByProducts 693.39 33,755.53 �06.99 39,855.87engineering and foundry Business :SaleofEngineeringgoods 168,748.90 �68,77�.7�Saleofproductionscrapandwaste 674.42 636.68Erection,Commissioningandotherreceipts 12,152.68 9,037.84ExportIncentives 819.63 ��50.44 216,151.16 ��9,55�.54Schedule ‘II’oTHeR IncoMe[Refer note 6 and 8 of Schedule IX]DividendIncomefromInvestments- Long Term - Non trade 17.33 0.00- Current-Nontrade 350.72 48.43Interest- OnGovt.Securities 0.01 0.0�- FromTaxAuthorities 494.35 0.98- Others [Tax deducted at source Rs.35.02 Lacs, 330.72 825.08 �95.�5 �96.�4 (PreviousyearRs.�0.50lacs)]Sundrybalanceswrittenback 306.14 �96.90Foreign Exchange fluctuation 1,624.59 0.00[Net of expense of Rs.2,856.08 Lacs (Previour year Nil)]Excessprovisionofearlieryearswrittenback 480.96 386.4�[includesprovisionfordoubtfuldebtswrittenbackRs.1.85 Lacs (Previous year Rs.191.27 Lacs)]Profit on sale of fixed assets 37.37 �6.78Profit on sale of stores 2.23 0.00InsuranceClaimReceipts 21.04 �3.60MiscellaneousIncome 928.42 �,066.0� 4,593.88 �,0�4.�8


Schedules annexed to and forming part of the Consolidated Profit & Loss Account for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatScHeduLe `III’ 30.09.2010 30.09.�009pRofIT fRoM fARM opeRATIonSIncomeSaleofFarmProduce[includingFarmProduce worth Nil (Previous Year Rs. 0.01 Lacs)atsellingpriceusedbyFarmasseedandlivestockmaintenance] 10.18 6.78MiscellaneousIncome 0.00 0.34(Increase)/Decreaseinstock (0.41) �.48 9.77 9.60expenditureSalaries,WagesandBonus 3.39 3.�3CultivationExpenses 2.10 �.30Office & Miscellaneous Expenses 0.19 0.54RepairsandMaintenance:- MachineryandTractors 0.17 0.��- Building 0.29 0.�0Depreciation 0.08 0.09 6.22 6.47Profit carried to Profit and Loss Account 3.55 3.�3Schedule’IV’(IncReASe)/decReASe In STocK of fInISHed GoodS And WoRK In pRoGReSS[Refer note 3 on Schedule IX]closing Stock :FinishedGoods 7,936.07 �,343.33Work-in-progress 19,293.77 �5,08�.56 27,229.84 �7,4�4.89Less: opening Stock (*):FinishedGoods 2,298.94 �3,803.4�Work-in-progress 14,989.07 �0,83�.93 17,288.01 34,636.35Increase/(Decrease)instockofFinishedGoods&Work-in-Progress 9,941.83 (�7,��.46)*Refernote�(b)onScheduleX.


Schedules annexed to and forming part of the Consolidated Profit & Loss Account for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘V’ 30.09.2010 30.09.�009MAnufAcTuRInG eXpenSeS [Refer note 14 on Schedule X]Rawmaterials&componentsofengineeringand foundrybusiness 35,504.20 4�,470.�9Caneconsumed 30,844.73 �3,��8.9�RawSugarPurchased 708.83 0.00Consumptionofstoresandspares 6,588.71 4,966.65Power&fuel 1,926.30 �,543.�3Otherexpenses 7,536.06 8,305.49Increase/(Decrease)inexcisedutyprovisioninopening and closing stock of finished goods 229.59 (949.63) 83,338.42 68,454.95Schedule ‘VI’eMpLoYee coST[Refer notes 9 of Schedule IX and 9 & 18 on Schedule X]Salaries,wages&bonus 14,589.10 ��,�54.��ContributiontoProvidentandotherfunds 931.49 �,�83.04Workmenandstaffwelfareexpenses 463.25 380.47 15,983.84 �3,7�7.7�


Schedules annexed to and forming part of the Consolidated Profit & Loss Account for the year ended 30th September, 2010 (Rs. in Lacs) As at AsatSchedule ‘VII’ 30.09.2010 30.09.�009AdMInISTRATIon And SeLLInG eXpenSeS[Refer notes 8 on Schedule IX and 15 & 18 on Schedule X]Rent 219.90 ��.09Ratesandtaxes 272.36 ��.78Electricityandwatercharges 124.79 �40.�9Royalty 334.84 358.7�Packing,forwardingandtransportationexpenses 792.21 �,�88.�8Repair&Maintenanceof:- Buildings 352.47 306.�6- Plant&Machinery 476.41 443.33- Others 33.39 �9.50Insurance 177.69 �70.9�Travelling 2,444.22 �,860.08Donation 21.40 ��.93Office and miscellaneous expenses * 2,813.87 �,743.7�Managerialremuneration 1,279.17 900.07Directors’commission/fee 6.10 3.70Baddebtswrittenoff 15.97 �8.�7Loss on assets sold / written off 62.88 3�.�9Loss on sales/disposal of stores 14.43 3�.87Commissiontosellingagentsandothers 945.55 �,667.�0Rebateanddiscount 238.39 �47.40ForeignExchangeFluctuation 0.00 6,9�8.84[Net of income of Nil (Previous year Rs.3,800.65 Lacs)] 10,626.04 �7,6�6.�4

* Includes provision made for doubtful debts Nil (Previous year Rs. 174.28 Lacs).

Schedule’VIII’

InTeReST And fInAncIAL cHARGeS[Refer note 10 on Schedule IX ]On Term Loans 905.51 95�.6�OnFixedDeposits 997.02 684.07On Other Loans/ Working capital Borrowings 195.74 �,944.��BankCharges 1,525.38 �,098.6� 3,623.65 4,678.4�


Schedules annexed to and forming part of the Consolidated Profit and Loss Account for the year ended 30th September, 2010

Schedule `IX’

Statement on Significant Accounting Policies1. principles of consolidation The consolidated financial statements relate to The Saraswati Industrial Syndicate Limited (‘the Company’),

its subsidiary companies and joint venture. The consolidated financial statements have been prepared on the followingbasis:

a) The financial statements of the Company , its subsidiary companies and joint venture are combined onaline-by-linebasisbyaddingtogetherthebookvalueoflikeitemsofassets,incomeandexpenses,afterfullyeliminatingintra-groupbalancesandintra-grouptransactionsinaccordancewithAccountingStandard (AS) 21 –“Consolidated Financial Statements” notified by Central Government under the Companies(AccountingStandards)Rules,�006.

b) Interest in Joint Venture has been accounted by using proportionate consolidation method as perAccountingStandard–�7–“FinancialReportingofInterestinJointVentures”.

c) The difference between the cost of investment in the subsidiaries, over the net assets at the time ofacquisition of shares in the subsidiaries is recognized in the financial statements as Goodwill or Capital Reserveasthecasemaybe.

d) Thedifferencebetweentheproceedsfromdisposalofinvestmentinsubsidiaryandthecarryingamountof its assets less liabilities as of the date of disposal is recognized in the consolidated statement of Profit and Loss Account as the profit or loss on disposal of investment in subsidiary.

e) Minority Interest’s share of net profit of consolidated subsidiaries for the year is identified and adjusted againsttheincomeofthegroupinordertoarriveatthenetincomeattributabletoshareholdersoftheHoldingCompany.

f) Minority Interest’s share of net assets of consolidated subsidiaries for the year is identified and presented in the consolidated balance sheet separate from liabilities and the equity of the Holding Company’s shareholders.

g) As far as possible, the consolidated financial statements are prepared using uniform accounting policies forliketransactionsandothereventsinsimilarcircumstancesandarepresentedinthesamemannerasthe Company’s separate financial statements.

2. use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires

managementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosures of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management’s best knowledge of currenteventsandactions,actualresultscoulddifferfromtheseestimates.Differencebetweentheactualresultandestimatesarerecognisedintheperiodinwhichtheresultsareknown/materialised.

3. Basis of consolidation The Consolidated Financial Statements include accounts of The Saraswati Industrial Syndicate Limited, its

SubsidiaryCompaniesandJointVenture(TheGroup).SubsidiaryundertakingsarethosecompaniesinwhichThe Saraswati Industrial Syndicate Limited, directly or indirectly, has an interest of more than one half of votingpowerorotherwisehaspowertoexercisecontrolovertheoperations.SubsidiariesareconsolidatedfromthedateonwhicheffectivecontrolistransferredtotheGroupandarenolongerconsolidatedfromthedate of disposal. All inter company transactions, balances and unrealised surpluses and deficits on transactions betweengroupcompaniesareeliminated.Consistencyinadoptionofaccountingpoliciesamongallgroupcompaniesisensuredtotheextentpracticable.


4. Inventories

Inventories are valued at lower of cost or net realizable value except in case of finished stock of molasses, which isvaluedatmarketprice.Costbeingcalculatedonweightedaveragebasisandincludescostofpurchaseandincidental expenses. However items held for use in the production are not written below cost if the finished goodsinwhichthesewillbeincorporatedareexpectedtobesoldatorabovecost.

Cost in case of finished goods and work-in-progress includes material cost and applicable manufacturing and administrative overheads. Cost in case of finished stock of sugar and work–in–progress includes raw material costandproportionateproductionoverheads.

Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslessestimatedcostsofcompletionandestimatedcostsnecessarytomakethesale.

Standingcropsarevaluedatestimatedcostofmaterial&labour.

ErectionWork-in-progressiscalculatedatcostornetrealisablevaluewhicheverislower.

Profit included in closing inventory on account of inter-unit transfers is eliminated to the extent practicable.

5. fixed Assets

a) Tangible Assets

Fixedassets are stated at their cost less accumulated depreciation.The costof anasset comprises itspurchase price and any directly attributable cost of bringing the asset to working condition for itsintendeduse.Costsincurredonup-gradationoftheComputerHardwarearecapitalised.Capitalsparesdirectly attributable to the fixed assets are capitalised with the related assets.

b) Intangible Assets

Intangible assets are recognised on the basis of recognition criteria specified in Accounting Standard AS-26 notified by Central Government under the Companies (Accounting Standards) Rules, 2006.

Costs incurred on acquisition of specialised software & technical know how are capitalised.

Theassetsareamortisedoveraperiodnotexceedingtenyearsonastraightlinebasis.

6. depreciation

Depreciation is provided on fixed assets at the rates and in the manner prescribed in Schedule XIV to the CompaniesAct,�956asperthewrittendownvaluemethodexceptinrespectofcertainPlant&Machinerywhich are depreciated as per the straight line method. Capital spares directly attributable to the specific fixed assetsaredepreciatedwiththecostoftherelatedassets.

Assets costing not more than Rs.5,000/- are fully depreciated in the year of their acquisition.

7. Revenue Recognition

Revenueisrecognisedincaseoftraded&manufacturedproductsondespatchofgoodsfromthefactoryandotherlocationswhensubstantialrisksandrewardsofownershiparetransferredtothebuyer.

Revenueincaseofcontractsalesisrecognisedunderthecompletedcontractmethodonsubstantialcompletionof thecontracts.Cost&progresspaymentsreceivedareaccumulatedandshownaswork-in-progressandadvances from customers respectively. Profit on incomplete erection contracts is being accounted for on completionoftheerectioncontracts.However,lossonerectionwork-in-progresshasbeenaccountedforinthe accounts in accordance with Accounting Standards. Interest income is accounted for on accrual basis.Expensestobeincurredduringtheperformancewarranty/guaranteeperiodofcontractsestimatedonthebasisofpastexperienceareprovidedforintheaccounts.

Revenueincaseoferection&commissioningjobscarriedoutbyEngineeringbusinessisrecognisedonstageofcompletionasperthetermsofrelatedagreements/joborders.

Salesarenetofinter-unittransfersexceptwheresucheliminationisnotpracticable.


InsuranceClaims,exportincentives,escalationandbufferstockofsugarclaims,etc.areaccountedforasandwhentheamountsrecoverablecanbereasonablydeterminedasbeingacceptabletotheconcernedauthorities/parties.

8. Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined for each category separately. Long-term investments are carried atcostonindividualinvestmentbasis.However,provisionfordiminutioninvalueismadetorecogniseadeclineotherthantemporaryinthevalueoftheinvestmentsincaseoflongterminvestments.Investmentsin Joint Ventures are accounted for in the Consolidated Financial Statements as per Accounting Standard(AS) – 27 on the Financial Reporting of Interest in Joint Ventures notified by Central Government under the Companies(AccountingStandards)Rules,�006.

9. foreign currency Transactions

(i) Initial Recognition

Foreigncurrencytransactionsarerecordedinthereportingcurrency,byapplyingtotheforeigncurrencyamounttheexchangeratebetweenthereportingcurrencyandtheforeigncurrencyonthedateofthetransaction.

(ii) conversion

Foreigncurrencymonetary itemsarereportedusing theclosingrate.Non-monetary itemswhicharecarriedintermsofhistoricalcostdenominatedinaforeigncurrencyarereportedusingtheexchangerateatthedateofthetransaction;andnon-monetaryitemswhicharecarriedatfairvalueorothersimilarvaluationdenominatedinaforeigncurrencyarereportedusingtheexchangeratesthatexistedwhenthevaluesweredetermined.

(iii) exchange differences

Exchangedifferencesarisingonamonetary item that, in substance, formspartof thecompany’snetinvestmentinanon-integralforeignoperationisaccumulatedinaforeigncurrencytranslationreserveaccount in the financial statements until the disposal of the net investment, at which time they are recognisedasincomeorasexpenses.

Exchangedifferencesarisingonthesettlementofmonetary itemsnotcoveredabove,oronreportingsuch monetary items of company at rates different from those at which they were initially recordedduring the year, or reported in previous financial statements, are recognized as income or as expenses in theyearinwhichtheyarise.

10. Employee Benefits

As per Accounting Standard (AS) -15 (Revised), provision for employee benefits is charged on accrual basis as under:

a) provident fund:

TheCompanyoperatesaProvidentFundTrustforitsemployeeswherecontributionsaredepositedonthebasisofservicesrenderedbytheemployeesandareexpensedasandwhenincurred.

b) Gratuity:

The Group operates a Gratuity Fund Trust, which in turn has taken Group Gratuity cum Life Assurance policy with the Life Insurance Corporation of India for all the employees. Provision for liability on account of gratuity being defined benefit plan, is determined as per actuarial valuation and charged to Profit & Loss account.

c) Leave encashment :

Provisionforleaveencashmentismadeinrespectofeligibleemployeesasperactuarialvaluationdoneatthebalancesheetdate.


d) pension

Liability on account of pension payable to employees covered under Group’s pension scheme is accounted foronaccrualbasis.

11. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapitalizedaspartofthecostoftherespectiveasset.Allotherborrowingcostsareexpensedintheperiodtheyoccur.Borrowingcostsconsistofinterestandothercoststhatanentityincursinconnectionwiththeborrowingoffunds.

12. earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders(afterdeductingpreferencedividendsandattributabletaxes)bytheweightedaveragenumberof equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period isadjustedforeventsofbonusissue,bonuselementinarightsissuetoexistingshareholders,sharesplit,andreversesharesplit(consolidationofshares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

13. Leases

Payments made under Leases for land, being in the nature of operating leases, are charged to Profit and Loss Account on straight-line basis as per terms of the Lease Agreement over the period of lease. Payments made under cancellable operating leases for other assets are charged to Profit & Loss Account as per respective lease agreements.

14. Research and development

Revenue expenditure on Research and Development (R&D) is charged to Profit & Loss Account in the year in which it is incurred. Capital expenditure on R & D is shown as addition to fixed assets.

15. Taxation

TaxExpense/(TaxSaving)istheaggregateofcurrentyeartaxanddeferredtaxcharged(orcredited)totheProfit & Loss Account for the year in accordance with Accounting Standard-22

“Accounting for Taxes on Income” notified by Central Government under the Companies (Accounting Standards)Rules,�006andmeasuredatthetaxratesthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.

a) Current Year Charge & Fringe Benefit Tax

Provision for taxation for the Group’s financial year ended September 30th 2010, being different from tax year which is financial year, has been determined based on the results for the six months ended March 2010 (assessment year 2010-2011) based on actual tax return filed and for the six months ended 30th September�0�0(assessmentyear�0��-�0��)basedonresultsfortheperiod.Theultimateliabilityfortheassessmentyear�0��-�0��howeverwillbedeterminedonthetotalincomeoftherespectiveentitiesoftheGroupfortheyearendingMarch3�,�0��.

The provision for taxation is based on assessable profits of the Group as determined under the Income Tax Act, �96�. The Group also provides for such disallowances made on completion of assessmentspendingappeals,asconsideredappropriate,dependingonthemeritsofeachcase.

b) deferred Tax

In accordance with Accounting Standard AS-22 “Accounting for Taxes on Income” notified by Companies (Accounting Standards) Rules, �006, deferred taxes resulting from timing differences between book


and tax profits are accounted for at applicable tax rate to the extent the timing difference are expected tobecrystallised.Deferredtaxassetsonaccountofunabsorbedlosses&unabsorbeddepreciationarerecognisedtotheextentthereisvirtualcertaintyofrealisingsuchassetsagainstfuturetaxableincome.

16. Impairment of Assets:




Impairmentlossisrecognisedwhenthecarryingamountofanassetexceedsitsrecoverableamount.



b) In the case of a cash generating unit (a group of assets that generates identified independent cash flows), atthehigherofthecashgeneratingunit’snetsellingpriceandthevalueinuse.

Value in use is determined as the present value of estimated future cash flows from the continuing use of an asset/cashgenerationunitandfromitsdisposalattheendofitsusefullife

17. provisions, contingent Liabilities and contingent Assets

Provision for future contingencies and liquidated damages is considered, where applicable. Provisions are recognisedforliabilitiesthatcanbemeasuredonlybyusingasubstantialdegreeofestimation,if





a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation or


ContingentAssetsareneitherrecognised,nordisclosed.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance sheet date.

18. commodity Hedging

Risk associated with fluctuations in the prices of the raw material are minimised by hedging on futures market. Theresultofmetalhedgingcontracts/transactionsarerecordedattheirsettlementandcharged/creditedtoProfit and Loss Account.

19. cash and cash equivalents

Cash and Cash Equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and fixed deposits with banks, excluding investment in mutual fund.


Schedules annexed to and forming part of the Consolidated Profit & Loss Account for the year ended 30th September, 2010Schedule ‘X’ notes to Accounts1 The Consolidated financial statements (CFS) have been prepared in accordance with Accounting Standard (AS)

21 on Consolidated Financial Statements notified by Central Government under the Companies (Accounting Standards) Rules, 2006. The CFS comprises the financial statements of The Saraswati Industrial Syndicate Limited, and its subsidiaries.

2 a) The list of Subsidiaries included in the consolidated financial Statements is as under: name of the Subsidiary company proportion of ownership as at country of Incorporation September 30, 2010 ISGEC Covema Limited 100.00%* India Saraswati Sugar Mills Limited 100.00% India ISGEC Exports Limited 100.00% India ISGEC Engineering & Projects Limited 100.00% India

*including0.0�%heldbythenomineesofthecompany. b) During the year the Joint Venture Company’s (ISGEC Haco Metal Forming Machinery Private Limited)

financial statements have not been consolidated by using exclusion clause in AS - 27 that interest in jointlycontrolledentityisheldwithaviewtoitsdisposalinnearfuture.TheCompanyoptedtocomeoutofJointVenturebyagreementwithJointVenturerbyvirtueofexitoptioninoriginalMemorandumofUnderstanding.

SinceJointVentureentityinterestisnotconsolidatedduringtheyeartheresultsarenotcomparabletothatextent.PriorperiodlossofRs33�.99lacsinJointVentureCompanyiseliminatedfromthecurrentyearConsolidatedFinancialStatementsandalsotheamountsincludedintheundermentioneditemshavenotbeencarriedforwardintheOpeningBalanceason0�.�0.�009.

Amounts not included in opening as on 01.10.2009 ResultsofoperationsincludedintheConsolidatedFinancialStatementsfortheyearended30.09.�009are

asunder: particulars Amount (Rs in Lacs) i) GrossRevenue �76.77 ii) TotalExpenses 54�.5� iii) Profit (after tax) for the year (263.79) particulars Amount (Rs in Lacs) i) FixedAssets �,079.3� ii) AccumulatedDepreciation �0�.�8 iii) ProvisionforGratuity 0.88 iv) Provision for Leave Encashment 2.87 v) Deffered Tax Liability (+) / Assets (-) (37.72) vi Provisions, Contingent Liabilities and Contingent Assets 2.57 vii) StockofFinishedgoods&WorkInProgress �36.88 c) The reportingdates forall theabovecompaniesare3�stMarch�0�0, except forSaraswatiSugarMills

Limited and ISGEC Engineering & Projects Limited which are 30th September, 2010. The financial statements of these entities are adjusted for significant inter company transactions from the date of their respective financial statements up to the date of consolidation in compliance with Accounting Standard (AS) - 21

d) The financial Statements of parent company and its subsidiaries have been consolidated on line by line basis byaddingtogetherbookvalueoflikeitemsofassets,liabilities,incomesandexpensesaftereliminatingintra-group balances and the unrealized profit/losses on intra group transactions, and are presented to the extent possible, in the same manner as the Company’s independent financial statements


e) The accounting policies for holding company and subsidiary companies are substantially uniform.However, In case of contract sales in the subsidiary ISGEC Covema Ltd., revenue is recognised on completedcontractmethodonsubstantialcompletionofcontracts,theimpactofwhichonConsolidatedFinancialStatementsisnegligibleasitformsaverysmallproportionofGrouprevenues.

As at Asat 30.09.2010 30.09.�009 (Rs in lacs) (Rsinlacs)3 contingent Liabilities: a) ClaimsagainsttheGroupnotacknowledgedasdebts (includingsalestaxunderdispute) 1,463.36 88�.60 b) Guaranteesfurnishedbythebankersonbehalfofthe GroupandcounterindemnityfurnishedbytheGroup tobankersforthesameamount. 88,166.09 49,545.80 c) GuaranteesgivenbytheGrouptothebankagainstloans, takenbythesugarcanefarmers - 596.64 d) BillsdiscountedwithBanks/FinancialInstitutions outstandingattheyearend - 34�.57 e) BondsexecutedinfavourofPresidentofIndiaagainstEPCGlicence 1,740.35 �,044.�6 f) Letters of credit outstanding at year end 9,702.80 3,668.474 Estimatedamountofcontractsremainingtobeexecutedon CapitalAccountandnotprovidedfor(netofadvances) 3,525.40 345.935 a) In respect of Saraswati Sugar Mills Limited, the case challenging the Levy Sugar Price fixation for the

season 1980-81 to 1999-2000 was decided in favour of the Company. The Company requested the Central Government to refix the levy sugar prices as directed by the Court. The Central Government has since amendedtheEssentialCommoditiesActnullifyingtheCourtJudgement.TheCompanyhaschallengedthe amendment as malafide in the Delhi High Court. Similar challenge has been made in the Supreme Court by another sugar factory. Accordingly, in terms of legal advice, the Company has filed petition in theSupremeCourtfortransferofitspetitionfromtheDelhiHighCourttotheSupremeCourt.

b) InviewofabolitionofStatutoryMinimumPriceofSugarcane,theGrouphaschangedthemethodofvaluationofFinishedStockofsugarbytakingintoaccountactualsugarcanepricepaidduringtheyear,inplaceofStatutoryMinimumPricewhichwasthebasisofrawmaterialcostfollowedtilllastaccountingyear.ImpactofaccountingpolicychangeisindeterminableintheabsenceofStatutoryMinimumPrice.

c) The Group and other assesses including Indian Oil Corporation challenged the levy of Local Area Development Tax under The Haryana Local Area Development Tax Act, 2000 and the Haryana Entry of Goods Into The Local Areas Act, 2008 in the High Court of Punjab & Haryana. The High Court decided the matter in favour of the Group, hence no liability has been accounted for. However subsequently the Supreme Court has, through an interim order, on the appeal of the State Government directed all the assessees to file the returns under the Local Area Development Tax Act. The Group has since filed the returns.

6 TheGroupestimatestheDeferredtax(charge)/creditfortheyearusingtheapplicabletaxratebasedontheimpact of timing differences between items in the financial statements and the estimated taxable income for thecurrentyear.ThemovementinprovisionforDeferredtaxisgivenbelow:

element of deferred Tax As at credit / *As at credit / As at 01.10. 2008 (charge) 01.10.2009 (charge) 30.09.2010 during the year during the year

Depreciation (3,003.7�) 50.06 (�,953.66) (�6.75) (2,980.41) OtherTimingDifferences �,�00.54 (�5�.�7) 948.�7 �9�.�8 1,139.45 Accumulated Losses 430.19 (394.93) 35.26 (35.26) (0.00) NetDeferredTax (�,47�.99) (497.�4) (�,970.�4) ��9.�7 (1,840.96) *ReferNote�(b)onSchedule‘X’


7 Micro, Small & Medium enterprises development Act, 2006

As at Asat 30.09.2010 30.09.�009 (Rs in lacs) (Rsinlacs) a) AmountRemainingUnpaidtoanySupplier PrincipalAmount 112.57 5�.�5 InterestdueThereon nIL NIL b) InterestpaidunderMicro,Smalland MediumEnterprises(Development)Act,�006 0.02 0.�� c) InterestDue(Otherthan7(b)) nIL NIL d) Interestaccuredandunpaid nIL NIL e) Interestdueandpayabletillactualpayment nIL NIL

The information has been given in respect of such vendors to the extent they could be indentified as “Micro, Small and Medium enterprises” as defined under the aforesaid Act on the basis of information available with theGroup.

8 Employee Benefits:

As per Accounting Standard -15 “Employee Benefits”, the disclosure of employee benefits as defined in AccountingStandardisgivenbelow:-

a) Defined Contribution Plan:

The Group has recognised, in the Profit and Loss Account, expenses for the following Defined Contribution Plan:

2009-10 �008-09 (Rs in lacs) (Rsinlacs) ProvidentFund 764.70 636.46 EmployeesStateInsurance 72.07 7�.�3 Total 836.77 707.69

b) Defined Benefit Plan :

The liability for Employee Gratuity and Leave Encashment is determined on actuarial valuation using projectedunitcreditmethod.Theobligationsareasunder:-

(Rsinlacs)

description Gratuity Leave encashment (funded) (non-funded) 2009-10 �008-09 2009-10 �008-09 i. change in present value of obligation a. PresentValueofObligationatthe 2,724.70* �,57�.90 698.38* 640.84 beginningoftheyear b. Interestcost 216.53 ��0.00 55.30 5�.03 c. Currentservicecost 197.79 �7�.55 156.21 ��8.�5 d. Benefits paid (208.88) (�64.�4) (182.06) (�48.79) e. Actuarial(gain)/loss 90.17 34.�8 174.52 40.0� f. PresentValueofObligationattheend 3,020.30 �,7�5.59 902.36 70�.�5 oftheyear


ii. change in the fair Value of plan Assets

a. FairValueofPlanAssetsatthe 2,912.03 �,603.43 N.A. N.A. beginningoftheyear

b. ExpectedReturnofPlanAssets 261.99 ��5.�3 - -

c. Contributions 171.62 400.59 - -

d. Benefits paid (208.88) (�63.�4) - -

e. Actuarial Gain / (Loss) on Plan Assets 110.10 (54.08) - -

f. FairValueofPlanAssetsattheend 3,246.85 �,9��.03 - - oftheyear

iii. Reconciliation of fair Value of Assets and obligations

a. FairValueofPlanAssetsattheend 3246.85 �9��.03 - - oftheyear

b. PresentValueofObligationattheend 3020.30 �7�5.59 902.36 70�.�5 oftheyear c. AmountrecognisedintheBalanceSheet 226.55 �86.44 (902.36) (70�.�5)

iv. Expenses recognised in the Profit & Lossaccount

a. CurrentServiceCost 197.79 �7�.55 156.21 ��8.�5

b. InterestCost 216.53 ��0.00 55.30 5�.03

c. ExpectedReturnonPlanAssets (261.99) (��5.�3) - -

d. Actuarial (Gain) / Loss (19.93) 88.36 174.52 40.0�

e. Expense recognised in the Profit & Loss 132.40 �45.68 386.04 �09.�0

v. Actuarial Assumptions

a. DiscountRate(perannum) 8.00% 8.00% 8.00% 8.00%

b. EstimatedRateofreturnonPlan 8.55% 8.00% - - Assets(p.a)

c. RateofEscalationinSalary(p.a) 5.50% 5.50% 5.50% 5.50% *ReferNote�(b)onSchedule‘X’

c) Amounts for the current and previous four periods in respect of Gratuity & Leave Encashment are as follows:*

particulars Gratuity Leave encashment (funded) (non-funded)

2009-10 �008-09 �007-08 2009-10 �008-09 �007-08

Defined Benefit Obligation 3,020.30 �,7�5.59 �,57�.90 902.36 70�.�5 640.84

PlanAssets 3,246.85 �,9��.03 �,603.43 - - -

Surplus / (Deficit) 226.55 �86.44 3�.53 (902.36) (70�.�5) (640.84)

Experience adjusment on Plan Liabilities (90.17) (34.�8) �9.30 (174.52) (40.0�) (�56.30)

ExperienceadjusmentonPlanAssets 121.99 (54.08) 30.44 - - -

*Disclosure in respect of previous two annual periods as required by Accounting Standard - 15 is not presentedastheGroupadoptedtheAccountingStandardin�007-08.


9 Segment Reporting A. Information about primary segments (Rs. in Lacs) Sugar Engineering Unallocated Eliminations Total

Revenue External 33,�49.8� �79,038.�� - - ��,�88.04 (38,456.48) (�,74,480.94) (-) (-) (�,��,937.4�) Inter-segment - 306.68 - (306.68) - (-) (3�.38) (-) (-3�.38) - Totalrevenue 33,�49.8� �78,73�.54 - (306.68) ��,�88.04 (38,456.48) (�,74,448.56) (-) (-) (�,��,905.04) Results Segmentresult 48�.33 �0,9�8.0� - - ��,4�0.34 (9,��0.�3) (9,970.9�) (-) (-) (�9,09�.05) Unallocatedexpenditure netofunallocatedincome - - - - - (-) (-) (-) (-) (-) Interest expense a) External (7�0.�0) (�,6�4.35) - - (�,334.45) (-�,�74.�3) (-�,469.04) (-) (-) (-3,643.�7) b) InterSegment (�36.�8) - - �36.�8 - (-63.46) (-) (-) (63.46) (-) Interest income a) External �94.66 630.4� - - 8�5.08 (48.60) (�47.54) (-) (-) (�96.�4) b) InterSegment - (�36.�8) - �36.�8 - (-) (-63.46) (-) (63.46) (-) Profit / Loss(-) before taxation andexceptionalitems (�79.�9) 9,707.90 - - 9,900.97 (7,93�.04) (7,7��.88) (-) (-) (�5,643.9�) ProvisionforDeferredtax (�06.�7) 76.99 - - (��9.�8) (584.56) (-89.�5) (-) (-) (495.3�) ProvisionforIncometax �45.00 3,�70.07 - - 3,4�5.07 (�,0��.00) (�,9�5.05) (-) (-) (4,936.05) Fringe Benefit Tax - - - - - (6.43) (64.4�) (-) (-) (70.84) Profit / Loss(-) after taxation andbefore (��8.��) 6,360.84 - - 6,6�5.08 exceptionalitems (5,3�9.05) (4,8��.67) (-) (-) (�0,�4�.7�) other Information Segmentassets �4,877.5� �54,050.�6 - (�,447.9�) �77,479.87 (�6,44�.35) (�08,3�0.�4) (-) (-49�.�3) (�34,�67.�6) Segmentliabilities ��,706.03 ��7,477.45 - (�,447.9�) ��7,735.57 (��,63�.76) (8�,5��.0�) (-) (-49�.�3) (9�,648.55) Capitalexpenditure-External 8�0.07 �0,085.44 - - �0,895.5� (�,840.59) (�,57�.5�) (-) (-) (3,4�3.�0) Inter-segment 306.68 - - (306.68) - (3�.38) (-) (-) (-3�.38) (-) Depreciation �,093.77 3,073.95 - - 4,�67.7� (�,��4.�4) (�,897.67) (-) (-) (4,��.8�) Note :- Previous year figures are indicated in parenthesis.


B. Information about Secondary Business Segments

(Rs. in Lacs) India outside India Total Revenuebygeographicalmarket External �79,563.65 3�,7�4.39 ��,�88.04 (�60,0��.05) (5�,9�5.37) (��,937.4�) Total 179,563.65 32,724.39 212,288.04 (�60,0��.05) (5�,9�5.37) (��,937.4�) Carryingamountofsegmentassets �77,43�.65 47.�� 77,479.87 (�34,�05.45) (6�.8�) (�34,�67.�6) Addition to fixed assets 10,895.51 - 10,895.51 (3,4��.�6) (�.94) (3,4�3.�0)

Note :- Previous year figures are indicated in parenthesis.

c. notes:

Segments have been identified by the management and reported taking into account, the nature of products and services, the differing risks and returns, the organization structure, and the internal financial reporting systems. Based on this the primary and secondary segments are identified below

(a) primary Segment

(i) TheGroupisorganizedintotwomainbusinesssegments,namely:

-SugarwhichconsistsofmanufactureandsaleofSugarand

- Engineering which comprises of production and sales of heavy Engineering equipments, mechanicalandhydraulicpressesandcastingsandconstructionanderectionboilers,sugarplant and machinery and related equipment

(ii) SegmentRevenueineachoftheabovedomesticbusinesssegmentsprimarilyincludessalesandotherincomeintherespectivesegments.

(b) Secondary Segment

(i) TheSegmentRevenueinthegeographicalsegmentsconsideredfordisclosureisasfollows:

(a) Revenue within India includes sales to customers located within India and earnings inIndia.

(b) Revenueoutside India includes sales to customers locatedoutside IndiaandearningsoutsideIndia.

(c) Segment Accounting policies:

(i) ThesegmentresultshavebeenpreparedusingthesameaccountingpoliciesaspertheFinancialStatementsoftheGroup.ReferScheduleIXandNotes7onScheduleX.

(ii) Unallocatedassetsincludedeferredtax,investmentsandinterestbearingdeposits.

(iii) Unallocatedliabilitiesincludenon-interestbearingliabilitiesandtaxprovisions.

(iv) Capital expenditure pertains to additions made to fixed assets during the year and includes capitalworkinprogress.

(d) Segment Assets and Liabilities:

Whilemostassetscanbedirectlyattributedtoindividualsegments,thecarryingamountofcertainassetsused jointlyby twoormore segments isallocated to the segmentsona reasonablebasis.Segment Liabilities include all operating liabilities and include creditors, accrued liabilities and interestbearingliabilities.


(e) Inter Segment Transfers

Segment revenues and segment results include transfers of revenue expenses between businesssegments. Such transfers are accounted for at competitive market prices charged from unaffiliated customers/vendors.Thesetransfersareeliminatedonconsolidation.

10 Related party transactions

InaccordancewiththeAccountingStandardon“RelatedPartyDisclosures”(AS-�8),thedisclosuresinrespectof Related Parties and transactions with them, as identified and certified by the management, are as follows:

(a) names of Related parties and description of relationship

Holding company none

Entities over which Directors and their relatives Yamuna Syndicate Limited can exercise significant influence Kamla Puri Charitable Trust KamlaPuriCharitableFoundation BlueWaterEnterprises

KeyManagementPersonnel Mr.AdityaPuri(ManagingDirector) Mrs.NinaPuri(WholetimeDirector)

RelativesofKeyManagementPersonnel Mr.RanjitPuri(Chairman),(HusbandofMrs.Nina PuriWholetimeDirector& FatherofMr.AdityaPuriManagingDirector)

Mrs.TanupriyaPuri (wifeofMr.AdityaPuriManagingDirector)

(b) Related party Transactions

2009-10 �008-09 (Rs in lacs) (Rsinlacs)

i) purchase of goods -Entitiesoverwhichkeymanagementpersonnelcan 408.85 440.�5 exercise significant influence -Keymanagementpersonnel 2.36 0.90 -RelativesofKeymanagementpersonnel 1.96 0.88 Total 413.17 441.93

ii) Sale of goods -Entitiesoverwhichkeymanagementpersonnelcan - - exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total - -

iii) Services Rendered -Entitiesoverwhichkeymanagementpersonnelcan 16.92 0.�7 exercise significant influence -Keymanagementpersonnel - - -RelativesofKeymanagementpersonnel - - Total 16.92 0.27



iv) Services received

-Entitiesoverwhichkeymanagementpersonnelcan 9.37 5.54 exercise significant influence

-Keymanagementpersonnel - -

-RelativesofKeymanagementpersonnel - -

Total 9.37 5.54

v) commission paid

-Entitiesoverwhichkeymanagementpersonnelcan 6.29 9.�6 exercise significant influence



Total 6.29 9.26

vi) Rent received

-Entitiesoverwhichkeymanagementpersonnelcan 0.38 - exercise significant influence



Total 0.38 -

vii) Rent paid

-Entitiesoverwhichkeymanagementpersonnelcan 50.41 39.70 exercise significant influence



Total 50.41 39.70

viii) Remuneration to directors

-Entitiesoverwhichkeymanagementpersonnelcan - - exercise significant influence

-Keymanagementpersonnel 1,279.17 900.07

-RelativesofKeymanagementpersonnel 1.25 0.83

Total 1,280.42 900.90

ix) Interest paid

-Entitiesoverwhichkeymanagementpersonnelcan 0.12 0.�� exercise significant influence

-Keymanagementpersonnel 1.37 �.39

-RelativesofKeymanagementpersonnel 2.86 �.86

Total 4.35 4.37



x) Amount payable as at year end

-Entitiesoverwhichkeymanagementpersonnelcan 9.29 49.�3 exercise significant influence

-Keymanagementpersonnel 455.09 870.78

-RelativesofKeymanagementpersonnel 26.24 �6.�4

Total 490.61 946.25

xi) Amount receivable as at year end

-Entitiesoverwhichkeymanagementpersonnelcan 11.52 �0.�� exercise significant influence



Total 11.52 10.11

11 In accordance with Accounting Standard (AS-19) on ‘Leases’, the Group has taken various residential /commercial premises and plant and machinery under cancellable operating leases. Lease rent charged to Profit & Loss account for the year are:

a) Residentialpremises 66.52 6�.�6

b) Commercialpremises 150.27 �55.43

c) Plantandmachinery 3.11 3.40

Total 219.90 ��.09

12 In accordance with Accounting Standard (AS-20) on ‘earnings per Share’ the following table reconciles the numerator and denominator used to calculate Basic and diluted earnings per Share:

a) Net Profit / (Loss) available to Equity Shareholders (Rs.inlacs)(aftercurrenttax). 6,485.90 �0,637.03

b) Weighted Average number of equity shares outstanding duringtheyearforthepurposeofcalculationof EarningPerShare(Inlacs) 73.70 73.70

c) Nominal value of Equity Share (In Rs.) 10.00 �0.00

d) EarningperShare(InRs.) 88.01 �44.34

13 Auditor’s Remuneration included in miscellaneous expenses.

a) AuditFee 8.98 9.�3

b) Other Certification Work 1.30 �.47

c) ReimbursementofExpenses 1.37 �.09


14 details of investment in Mutual fund purchased & sold during the year:

name of the fund 2009-10 �008-09 no. Amount No. Amount (Rs in lacs) (Rsinlacs)

SBI-Magnum Insta cash fund -ACQUIRED* 26868210.37 4,500.51 �73�6�98.05 �,900.�6 -SOLD 26868210.37 4,500.51 �73�6�98.05 �,900.�6 SBI-ultra Short Term fund -ACQUIRED* 22122483.80 2,213.61 �305�6��.49 �,306.5� -SOLD 22122483.80 2,213.61 �305�6��.49 �,306.5� Kotak Liquid Instituational premium -ACQUIRED* 86490515.05 10,576.15 NIL NIL -SOLD 86490515.05 10,576.15 NIL NIL Kotak floater Long Term -ACQUIRED* 106177346.92 10,702.46 NIL NIL -SOLD 106177346.92 10,702.46 NIL NIL Kotak Quarterly Interval plan Series-1 -ACQUIRED* 10001174.34 1,007.31 NIL NIL -SOLD 10001174.34 1,007.31 NIL NIL Kotak Quarterly Interval plan Series-6 -ACQUIRED* 10000000.00 1,011.18 NIL NIL -SOLD 10000000.00 1,011.18 NIL NIL Reliance Liquid fund-Treasury plan-Retail option -ACQUIRED* nIL nIL 556�65�.96 850.07 -SOLD nIL nIL 556�65�.96 850.07 Reliance Liquid fund-Treasury plan-Institutional -ACQUIRED* 158157459.40 24,178.03 3�8063.�5 50.0� -SOLD 158157459.40 24,178.03 3�8063.�5 50.0� Reliance Money Manager fund-Retail -ACQUIRED* 46.37 0.46 NIL NIL -SOLD 46.37 0.46 NIL NIL Reliance Money Manager fund-Institutional -ACQUIRED* 1967312.68 19,697.47 404540.�8 4,050.00 -SOLD 1967312.68 19,697.47 404540.�8 4,050.00 IcIcI Liquid Super Institutional plan -ACQUIRED* 6499275.37 2,000.29 NIL NIL -SOLD 6499275.37 2,000.29 NIL NIL IcIcI flexible Income plan -ACQUIRED* 4729731.26 500.22 NIL NIL -SOLD 4729731.26 500.22 NIL NIL IcIcI flexible Income plan premium -ACQUIRED* 4369078.25 4,619.64 NIL NIL -SOLD 4369078.25 4,619.64 NIL NIL

Total -ACQUIRED* 437382633.81 81,007.33 46663�77.0� �0,�56.85 -SOLD 437382633.81 81,007.33 46663�77.0� �0,�56.85

* Figures under acquired during the year includes additional units received against dividend Reinvested.


2009-10 �008-09 (Rs in lacs) (Rsinlacs)15 Revenue expenditure on Research & development: a) Salary 6.07 6.65 b) ContributiontoProvidentFund 0.36 0.33 c) Others - - Total 6.43 6.98

16 As per Accounting Standard, AS – 26, the assets acquired during the year have been capitalised and amortised over estimated useful life as follows:-

a) Software Licences (Useful Life 5 years) 198.53 �30.38 b) Technical Know How (Useful Life 10 years) 3,809.60 NIL

17 disclosure in terms of Accounting Standard AS – 29 on provisions, contingent Liabilities and contingent Assets:-

I Movement for provision for Liabilities: a) OpeningBalance 6,877.41* 5,50�.4� b) Providedforduringtheyear 2,837.76 �,590.37 c) Usedduringtheyear 1,054.11 57�.34 d) Reversedduringtheyear 553.74 64�.47 e) ClosingBalance 8,107.31 6,879.98 Timing of outflow/uncertainties Outflow on expenses incurred/ crystallisation of duesdependsuponclaimstobemade byCustomers&others.

II provisions made during the year have been accounted for under the following heads a) Costofgoodspurchasedforresale 2,767.70 �,307.7� b) Manufacturingexpenses 70.06 �8�.66 *ReferNote�(b)onSchedule‘X’

18 pre-operative expenses forming part of capital work in progress are as under :-

Amountbroughtforwardfromlastyear 68.02 �7.45 Add:Expenditureincurredduringtheyear Salaries&Wages 11.39 �9.89 Depreciation 0.26 0.33 Repair&Maintenance - - ElectricityExpenses - - TravellingExpenses 3.72 5.�9 BankCharges 0.07 0.03 ProfessionalFees - - Interest on Loan - - ExchangeFluctuations - - Rates&Taxes - - Rent - - Others 30.58 �5.�3

Total 114.04 68.02 Less:Capitalized during the year 89.10 -

AmountcarriedforwardtoCapitalworkinprogress 24.94 68.0�


19 foreign currency exposures :

The Group had entered into swaps/forward contracts which are not intended for trading or speculativepurposes but for hedge purposes, to establish the amount of reporting currency required or available at the settlementdateofcertainpayablesandreceivables.

As at Asat 30.09.2010 30.09.�009 (Rs in lacs) (Rsinlacs)

I a) Theparticularsofforwardcontractsenteredintofor hedgingpurposeoutstandingasatyearendareasunder:

i)Forreceivables 5,632.78 ��,700.56

ii)Forloans 7,370.23 5,677.30

iii)Forhedginginterestpaymentsonloans 55.19 3�.4�

b) Unhedgedforeigncurrencyexposuresasatyearendareasunder:

i)Receivables 2,319.44 3,443.4�

II AsperannouncementissuedbyInstituteofCharteredAccountantsofIndiaondisclosureofderivativeinstrumentswhicharenotcoveredunderAccountingStandard(AS)-��-“TheEffectsofchangesinForeignExchangerates”,therearenooutstandingderivativesason30.09.�0�0

20 dividend distribution Tax on Interim dividend has not been provided as per provisions of Income Tax Act, 1961 due to offset of dividend distribution Tax paid by Subsidiary company on receipt of dividend by Holding company.

21 Previous year figures have been regrouped/ recast wherever considered necessary to conform to current year classification.


conSoLIdATed cASH fLoW STATeMenT for the year ended 30th September, 2010

(Rs. In Lacs) Year ended Yearended 30.09.2010 30.09.�009

A. Cash flow from Operating activities:

Net (loss)/profit before tax but after exceptional 9,900.97 15,643.92

/extraordinaryitems

Adjustments for:

Depreciation 4,�67.7� 4,��.8�

InterestExpense 3,6�3.65 4,678.4�

InterestIncome (8�5.08) (�96.�4)

IncomefromInvestment-Dividends (368.05) (48.�3)

(Profit)/Loss on Fixed Assets sold (Net) 25.51 14.41

(Profit)/Loss on sale of Investments - 32.87

(Profit)/Loss on sale of Stores 12.20 -

Debts/AdvancesWrittenoff �5.97 �8.�7

ProvisionforBad&DoubtfulDebts - �74.�8




-(INCREASE)/DECREASEinSundryDebtors (9,737.85) �,86�.49

-(INCREASE)/DECREASEinOtherReceivables (5,448.�6) 89.39

-(INCREASE)/DECREASEinInventories (�6,608.�3) �3,65�.89

-INCREASE/(DECREASE)inTrade&Other 36,934.7� (6,�3�.�7)PayablesandProvisions

cash generated from operations 20,906.37 43,117.98

-Taxes(Paid)/Received(NetofTDS) (4,�33.77) (3,364.98)

net cash from operating activities 16,672.60 39,753.00

B. Cash flow from Investing Activities

Purchase of fixed assets (11,155.45) (3,445.06)

Proceeds from Sale of fixed assets 2,429.14 81.88

Sale/(Purchase)ofInvestments (�0,35�.48) (4,485.0�)

DividendReceived 368.05 48.�3

net cash used in investing activities (18,709.74) (7,800.08)

C Cash flow from Financing activities:

Proceeds/(Repayment)fromSecuredloans 689.99 (�5,453.95)


Proceeds/(Repayment)ofunsecuredloans �,�53.50 �,�0�.8�

InterestReceived(Revenue) 85�.�� 76.43

InterestPaid (3,560.�6) (4,4�6.7�)

DividendPaid (�,369.4�) (�69.0�)

CorporateDividendTaxPaid (�4�.33) -

Net cash used in financing activities (1,376.30) (27,661.44)

net Increase/(decrease) in cash & cash equivalents (3,413.44) 4,291.48





CurrentAccounts(dividendaccount) 78.5� 47.74

BalancewithScheduledBanks �,367.48 3,86�.�6

TermDeposits&MarginMoneywithBanks

(against Bank Guarantees & Letter of Credit issued by Bank) 2,827.85 3,477.75

4,657.38 8,070.82

notes :

1 The above Cash flow statement has been prepared under the indirect method setout in Accounting Standard -3.

2 Previous period figures have been regrouped and recast wherever necessary to conform to the current period classification.

3 FollowingnoncashtransactionshavenotbeenconsideredintheCashFlowStatement.

-Taxdeductedatsource(onincome)

As per our report of even date.for S.S. Kothari Mehta & co. Sanjay Kumar Kishore chatnaniCharteredAccountants AssistantGeneralManager(Accounts) Sr.VicePresident(Finance&Accounts)(firm’s Regn. no. 000756n)

(Arun K. Tulsian) S.K.Khorana Aditya puriPartner ExecutiveDirector&CompanySecretary ManagingDirectorMembershipNo.89907


99ISGec covema Limited


BoARd of dIRecToRS

directors Mr.AdityaPuri Mr.S.K.Khorana Mr. L.M. Talwar Mr. P.L. Dhar Mr.V.K.Sachdeva

Bankers StateBankofPatiala CorporationBank PunjabNationalBank

Registered Office D-860,NewFriendsColony, NewDelhi-��0065

�00 ISGec covema Limited

dIRecToRS’ RepoRT To the Members,

YourDirectors’presenttheAnnualReporttogetherwiththeauditedstatementofAccountsfortheyearended3�stMarch�0�0

1.0 fInAncIAL ReSuLTS

figures in Rs./Lacs for the year ended

31st March.2010 31st March.2009

Profit/(loss) before Depreciation 54.52 (�8.96) Depreciation 0.33 0.43 Net Profit/(loss) for the year 54.19 (�9.39) ProvisionforTaxation 16.75 (0.0�) Net Profit/(loss) after Tax 37.44 (�9.38) Profit/(Loss) Brought forward from last year 55.81 75.�9 Balance in Profit and Loss carried forward 93.25 55.81

2.0 ReVIeW of opeRATIonS of THe coMpAnY�.� ErectionandCommissioningofTwoBoilersweresuccessfullycompletedduringtheyear.

3.0 eneRGY conSeRVATIon, TecHnoLoGY ABSoRpTIon, foReIGn eXcHAnGe eARnInGS And ouTGo

3.� Thecompanycontinuestomakeeffortsinconservationofenergybyminimizingwastageinitslimitedareasofoperation.

3.� TheCompanycontinuestoadoptimprovedtechnologyincarryingoutitsactivities.

3.3 There was no foreign exchange income or outflow during the above period.

4.0 fIXed depoSITS

4.1 No fixed deposit from the Public was accepted during the year.

5.0 AudIToRS

5.1 The Auditors, M/s. K.C. Malhotra & Company, Chartered Accountants, have furnished a certificate that their appointment, if made, would be within the limits specified under Section 224(1B) of the Companies Act,�956.

6.0 dIRecToRS

6.1 Mr. P.L. Dhar and Mr. V.K. Sachdeva, directors, will retire by rotation on the forthcoming Annual General Meetingandareeligibleforreappointment.

7.0 dIRecToRS’ ReSponSIBILITY STATeMenT undeR SecTIon 217 (2AA) of THe coMpAnIeS AcT, 1956.

TheDirectors’state:

7.� Thatinthepreparationoftheannualaccountsfortheyearended3�stMarch,�0�0,theapplicableAccountingStandardshasbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures.

7.� ThattheDirectorshaveselectedandappliedsuchaccountingpoliciesconsistently.

�0�ISGec covema Limited

7.3 ThattheDirectorshavemadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrue and fair view of the state of affairs of the company at the end of the financial year and of the profit or lossofthecompanyforthatperiod.

7.4 That the Directors have taken proper and sufficient care for the maintenance of adequate accounting recordsinaccordancewiththeprovisionoftheCompaniesActforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraudandotherirregularities;

7.5 ThattheDirectorshavepreparedtheannualaccountsonagoingconcernbasis.

8.0 AppRecIATIonS

8.� TheDirectorsplaceonrecordtheirappreciationtothebankersandemployeesfortheco-operationextendedtotheCompany.

With these remarks, we present the Profit & Loss Account for the year ended 31stMarch,�0�0andtheBalanceSheetasonthatdate.

BY THe oRdeR of THe BoARd

Place:NewDelhi S.K. Khorana L.M. TalwarDated:7thAugust,�0�0 Director Director

�0� ISGec covema Limited

AudIToR’S RepoRT

WehaveauditedtheattachedBalanceSheetofISGec coVeMA LIMITedasat3�st March, 2010 and also the Profit and Loss account for the year ended on that date annexed thereto and the Cash Flow statement for the year ended on that date. 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 standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefreeofmaterialmisstatement.Anauditincludesexaminingonatestbasis,evidencesupportingtheamountsand 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 believethatourauditprovidesareasonablebasisforouropinion.

As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies (Auditor’s Report) (AmendmentOrder),�004(togetherthe‘order’)issuedbytheCentralGovernmentofIndiaintermsofsubsection(4A)ofsection��7oftheCompaniesAct,�956,ofIndia(“TheAct”)andonthebasisofsuchchecksandrecordsofthecompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous,wereport a statement on the matters specified in paragraph “4” and “5” of the said order:

1 (a) The Company has maintained proper records showing full particulars including quantitative details and situationofFixedAssets.

(b) The management has certified that it has conducted a physical verification of Fixed Assets, at reasonable intervals,whichinouropinionisreasonable,havingregardtothesizeofthecompanyandnatureofitsassets. No material discrepancies were noticed on such physical verification.

(c) InouropinionthecompanyhasnotdisposedofsubstantialpartofFixedAssetsduringtheyearandthegoingconcernstatusofthecompanyisnotaffected.

2 (a) Erection works in progress is identified job wise and these are checked by the management at number of points to ensure physical availability of the said stock In our opinion, the frequency of verification is reasonable.

(b) The Procedures of Physical verification of such stock followed by the management is reasonable and adequate in relation to the size of the company and the nature of its Business.

(c) The company has maintained proper records of such stock. The discrepancies noticed on verification betweenthephysicalstockandbookrecordswerenotmaterialandthesamehavebeenproperlydealtwithinthebooksofaccount.

3 (a) (i) The company has not granted any loans, secured or unsecured to companies, firms or other parties listedintheregistermaintainedundersection30�oftheCompaniesAct,�956.AccordinglyClauses(iii)(b)to(iii)(d)ofparagraph4oftheorderarenotapplicabletothecompanyforthecurrentyear.

�03ISGec covema Limited

(b) (i) Thecompanyhastaken loanfromtheholdingcompanyviz.TheSaraswati IndustrialSyndicateLimited, the terms and conditions of which are, prima facie, not prejudicial to the interest of thecompany.Themaximumamountoutstandingduring theyearandyearendbalanceareRs.79,434,490/- and Rs. 58,577,4�6/- respectively. There are no other loans, secured or unsecured,from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 except amount due to Saraswati Sugar Mills Limited Subsidiary of The Saraswati Industrial Syndicate Limited amounting to Rs. 47,087,757/- (Net) (Maximum amount outstandingduringtheyearRs.47,087,757/-inthenormalcourseofbusiness.

(ii) Inrespectoftheaforesaidloanthecompanyisregularinrepaymentoftheinterestdueasperthetermsoftheacceptance.Weareexplainedthatsuchloanandamountduearerepayableondemandandtherefore,thereisnooverdueamountdueattheyearend.

4 In our opinion and according to the information and explanation given to us, there are adequate internal controlsystemcommensuratewiththesizeofthecompany,thenatureofitsbusinesswithregardtopurchasesofmaterials,FixedAssetsandwithregardtoerectionreceipts.Duringthecourseofouraudit,wehavenotnoticedanymajorweaknessesininternalcontrolsystem.

5 (i) In our opinion and according to the information and explanations given to us, the transactions thatneedtobeenteredintoaregisterinpursuanceofsection30�oftheCompaniesAct,�956havebeensoentered.

(ii) Inouropinionandaccordingtotheinformationandexplanationgiventous,thetransactionsmadeinpursuanceofcontractsoragreementsenteredintheregistermaintainedundersection30�ofthecompaniesAct, 1956 exceeding the value of Rupees five lakhs in respect of any party during the year have been made atpriceswicharereasonablehavingregardtoprevailingmarketpricesattherelevanttime.

6. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotacceptedanydepositfromthepublicandhencetheprovisionsofclause4(vi)oftheCompanies(Auditors’Report)order,�003regardingdepositsfromthepublicarenotapplicabletotheCompany.

7. Inouropinion, thecompanyhasan internalAuditSystemCommensuratewith its sizeandnatureof theCompany’sbusiness.

8. MaintenanceofcostrecordshasnotbeenprescribedtothecompanybytheCentralGovernmentundersection�09(�)(d)oftheCompaniesAct,�956.

9 (a) Accordingtotheinformationandexplanationsgiventousandrecordsofthecompanyexaminedbyus,inouropinion,undisputedStatutoryduesincludingProvidentFund,(beingdepositedbytheHoldingCompanyonbehalfofthecompany),IncomeTax,SalesTax,ServiceTax,Cessandotherstatutoryduesapplicabletoithavebeenregularlydepositedduringtheyearwiththeappropriateauthorities.Weareinformedthat there isno liability towardsInvestorEducationandProtectionFund,Employee’sStateInsurance,andWealthTax,CustomsDutyandExciseDutyfortheyearunderaudit.


(b) Accordingtotheinformationandexplanationgiventous,noundisputedamountspayableinrespectofIncomeTax,WealthTax,Servicetax,CustomDutyandExciseDuty,wereoutstandingasat3�stMarch,�0�0foraperiodofmorethansixmonthsfromthedatetheybecamepayable.InrespectofSalesTaxpayabletherewereundisputedamountoutstandingatRs.�56000/-asat3�stMarch�0�0foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(c) AccordingtotherecordsoftheCompany,therearenoduesofSaleTax,IncomeTax,CustomsDuty,WealthTax,ServiceTax,andExciseDuty/Cesswhichhavenotbeendepositedonaccountofanydispute.

�0. TheCompanyhasnoaccumulatedlossesofthecompanyattheendoftheyear.Thecompanyhasnotincurredany cash losses during the financial year covered by our audit but in the immediately preceding financial year amountingtoRs.�8,95,649/-.

��. Accordingtotheinformationandexplanationgiventous,weareoftheopinionthattheCompanyhasnotdefaulted in repayment of dues to financial institutions, banks, or debenture holders.

��. InouropinionandaccordingtotheinformationandexplanationgiventousnoloansandadvanceshavebeengrantedbythecompanyonthebasisofsecuritybywayofpledgeofShares,Debenturesandothersecurities.

13. In our opinion the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore clause 4(xiii) oftheCompanies(Auditor’sReport)order�003isnotapplicabletotheCompany.

�4. Thecompanyisnotdealingortradinginshares,securities,debenturesandotherinvestmentsandthereforeparagraph4(xiv)oftheorderisnotapplicable.

�5. ThecompanyhasnotgivenanyguaranteeforloanstakenbyothersfromBanksorFinancialInstitutions.

�6. TheCompanyhasnotraisedanytermloansduringtheyear.

�7. AccordingtotheinformationandexplanationgiventousandonanoverallexaminationoftheBalanceSheetoftheCompany,wereportthatnofundsraisedonshort-termbasishavebeenusedforlong-terminvestment.

�8. BasedonourexaminationofrecordandtheinformationprovidedtousbyManagementwereportthatthecompany has not made preferential allotment of shares to parties and companies covered in the registermaintainedundersection30�oftheCompaniesAct,�956.

�9. During theperiodcoveredbyouraudit report, thecompanyhasnot issueddebenturesand therefore thequestion of creation of any security or charge in respect of these debentures does not arise.

�0. TheCompanyhasnotraisedanymoneybywayofpublicissueduringtheyear.

��. Basedupontheauditproceduresperformedandinformationandexplanationsgivenbythemanagement,wereportthatnofraudonorbythecompanyhasbeennoticedorreportedduringthecourseofouraudit.

Furthertoourcommentsreferredtoabove,wereportthatwehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofourAudit.Inouropinion,properbooks of account as required by law have been kept by the company so far as appears from our examination of


those books. The Balance Sheet and Profit and Loss account and Cash Flow Statement dealt with by this report are in agreement with the books of account. In our opinion the Balance Sheet and Profit and Loss account and Cash FlowStatementdealtwithbythisreportcomplywiththeaccountingstandardsreferredtoinsub-section(3C)ofsection��oftheCompaniesAct,�956,OnthebasisofwrittenrepresentationsreceivedfromtheDirectors,ason3�stMarch,�0�0andtakenonrecordbytheBoardofDirectors,wereportthatnoneoftheDirectorsisdisqualified as on 31stMarch,�0�0frombeingappointedasadirectorintermsofClause(g)ofsub-section(�)ofsection�74oftheCompaniesAct,�956.Inouropinionandtothebestofourinformationandaccordingtothe explanation given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and gives a true and fair view in conformity with the accounting principles generally acceptedinIndia;

(a) InthecaseoftheBalanceSheet,ofthestateofaffairsofthecompanyasat3�stMarch,�0�0

(b) In the case of the Profit and Loss account of the profit for the year ended on that date and

(c) InthecaseoftheCashFlow Statement, of the cash flows for the year ended on that date.

for K.c.Malhotra & co. chartered Accountants

FirmRegn.No.57N

Place:NewDelhi RameshMalhotraDated:07thAugust,�0�0 Partner MembershipNo.

0�36�4


BALAnce SHeeT as at 31st March, 2010particulars FiguresinRupees Schedule As at Asat no. 31.03.2010 3�.03.�009SouRceS of fundS

ShareCapital A �0,000,000 �0,000,000

Unsecured Loans B 58,577,4�6 69,�35,998

ReservesandSurplus c 9,3�5,967 5,58�,3�4

Total 87,903,393 94,717,312

AppLIcATIon of fundS

fixed Assets

GrossBlock d 49,�45,533 49,�4�,833

Less: Depreciation 646,516 48,499,017 613,163 48,528,670

current Assets,Loans & Advances

ErectionWorkInProgress 7,500,000

(ReferSchedule-Knote-�(iii))

SundryDebtors e �35,�89,66� �7�,3��,440

Cash&BankBalances f 3,�65,085 6,597,96�

Loans & Advances G 36,79�,474 76,435,377

�75,347,��0 �6�,845,779

Less: current Liabilities & provisions

Current Liabilities H �36,00�,965 ��6,7�7,877

net current Assets �36,00�,965 39,344,�55 ��6,7�7,877 46,��7,90�

deferred Tax:

DeferredTaxAsset 60,�� 60,740

Total 87,903,393 94,717,312

Statement on Significant Accounting Policiesand notes to accounts J

As per our report of even date attached dinesh Kumar S.K. Khorana L.M. TalwarK.c.Malhotra & co. CompanySecretary Director DirectorCharteredAccountants(FirmRegn.No.57N)

Ramesh MalhotraPartnerMembershipNo.�36�4

Place:NewDelhi Date:07thAugust,�0�0


pRofIT And LoSS AccounT for the year ended 31st March, 2010 FiguresinRupeesparticulars Schedule Year ended Yearended no. 31.03.2010 3�.03.�009IncoMe ErectionReceipts �70,895,�00 �87,37�,�87InterestonIncomeTaxRefund 456,944 98,060Total 171,352,144 287,470,347 eXpendITuRe CostofErection I �57,367,78� �80,�5�,6��Rent 996,567 963,38�Power&Fuel 40,879 ��,897Rates&Taxes �,000 �,500Insurance 3�,365 9,6�5Office & Miscellaneous Expenses 356,286 450,093TelephoneCharges ��,587 337,750TravellingExpenses �,�73,9�� ,777,�46BankCharges �44,989 5�,�5�Interest 5,393,9�0 5,�6�,579Legal and Professional Expenses 246,834 124,500Auditfee �8,650 �8,650DirectorsMeetingFee 3,750 4,000Depreciation 33,353 43,00� �65,93�,87� �89,408,997Profit Before Taxation 5,4�9,�7� (�,938,650)provision for Taxation �,674,000 deferred Tax debit/(credit) 6�9 �,674,6�9 (570)Profit after taxation 3,744,653 (�,938,080)Profit Brought forward from last year 5,58�,3�4 7,5�9,394Balance Profit Carried to Balance Sheet 9,3�5,967 5,58�,3�4

Statement on Significant Accounting Policiesand notes to accounts J

As per our report of even date attached dinesh Kumar S.K. Khorana L.M. TalwarK.c.Malhotra & co. CompanySecretary Director DirectorCharteredAccountants(FirmRegn.No.57N)


Place:NewDelhi Date:07thAugust,�0�0


Schedule Annexed to and forming part of the Accounts for the year ended 31st March, 2010

FiguresinRupeesSchedule ‘A’ As at As atShare capital : 31.03.2010 31.03.2009

Authorised Share capital 20,00,000 equity shares of Rs.10/- each 20,000,000 20,000,000

Issued,Subscribed and paid up capital 20,00,000 equity shares of Rs.10/- each 20,000,000 20,000,000

FullyPaidup. �0,000,000 �0,000,000

Schedule ‘B’ unsecured LoansFromtheholdingcompanyviz- 58,577,4�6 69,�35,998

The Saraswati Industrial Syndicate Limited 58,577,4�6 69,�35,998

Schedule ‘c’ Reserves and SurplusBalance in Profit and Loss Account 9,325,967 5,581,314

9,3�5,967 5,58�,3�4

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��0 ISGec covema Limited


FiguresinRupeesSchedule ‘e’ As at As atSundry debtors 31.03.2010 31.03.2009(Unsecured) Debtsoutstandingforaperiodexceeding sixmonths -ConsideredGood* 87,977,87� ��3,�4�,9�9-ConsideredDoubtful 99,8�� 99,8��OtherDebts-ConsideredGood 47,3��,790 59,�69,5�� 35,389,47� �7�,4��,�5�Less:- Provision for Doubtful Debts 99,811 99,811*Includes due from Saraswati Sugar Mills Ltd.(subsidiary of The Saraswati Industrial Syndicate Ltd) Rs.53,223 (previous Year Rs.�,04,70�) �35,�89,66� �7�,3��,440

Schedule ‘f’ cash & Bank BalancesCashInHand �,770 �,770BalancesWithScheduledBanksinCurrentaccount 3,�6�,3�5 6,595,�9�

3,�65,085 6,597,96�

Schedule ‘G’ Loans and Advances (Unsecuredconsideredgood) AdvancesRecoverableinCashorinKind orforvaluetobereceived �9,�50,95� 56,4�5,073SecurityDeposit �09,600 �4�,600AdvanceTax/IncomeTaxrefundable (afteradjustmentofprovisionforIncomeTax) �7,43�,9�� 9,878,704

36,79�,474 76,435,377Schedule ‘H’ current Liabilities SundryCreditors -DuetoSSIUndertakings - --DuetoMicroandSmallEnterprises - --Others 54,007,804 �09,�58,�64AdvancesfromCustomers �0,580,750 40,575,��0Duetobank-SBOPOther Liabilities* 71,414,411 66,884,493*Includes due to Saraswati Sugar Mills Ltd.(subsidiary of The Saraswati Industrial Syndicate Ltd) Rs.4,71,40,980/- (previousYearRs.4,7�,40,980/-) �36,00�,965 ��6,7�7,877

��ISGec covema Limited


FiguresinRupeesSchedule ‘I’ As at As aterection cost 31.03.2010 31.03.2009

OpeningBalance:-

Erectionwork-in-progress 7,500,000 ��,800,000

Add:

ErectionCostincurredduringtheyear �49,867,78� �74,85�,6��

�57,367,78� �87,65�,6��

Less :Closing Balance

ErectionWorkinProgress - 7,500,000

erection cost (*) �57,367,78� �80,�5�,6��

ErectionCost �57,07�,945 �79,585,83�

Food&Brev. �94,836 48�,540

Freight&Cartage - �9,�74

TravellingExpenses - 65,077

�57,367,78� �80,�5�,6��

�� ISGec covema Limited


Schedule ‘J’

Statement on significant Accounting Policies and Notes to accounts:I Accounting policies :

1 Accounting convention :

TheAccountshavebeenpreparedunderthehistoricalcostconventionandcomplyinallmaterialaspectswith the applicable accounting principles of India and accounting standards notified under sub-section (3C)ofSection��oftheCompaniesAct,�956

2 fixed Assets :

Fixed Assets are stated at cost less depreciation. Depreciation on fixed assets has been provided for the year on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

3 Inventories :

ErectionWork-in-Progresshasbeenvaluedatlowerofcostornetrealisablevalue.

4 Revenue Recognition :

Accounting for sales under erection contracts is recognised on the basis of actual completion & certification of work. Loss on Erection & Commissioning has been accounted for in the accounts, in accordance with theAccountingStandards.Interestincomeisaccountedforonaccrualbasis.

5 Insurance and other claims :

Theseareaccountedforasandwhenthesameareacceptedbytheconcernedauthorities/Parties.

6 Taxes on Income

Currenttaxisdeterminedastheaccountoftaxpayableinrespectoftaxableincomefortheyear.Deferredtaxisrecognised,subjecttotheconsiderationofprudence,ontimingdifferencebetweentaxableincomeandaccounting income that originates in one year and are capable of reversal in one or more subsequent years.

7 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds it’s recoverable value. Animpairment loss is charged to the Profit and Loss Account in the year in which an asset is identified asimpaired.Theimpairmentlossrecognisedinprioraccountingperiodisreversediftherehasbeenachangeintheestimateofrecoverableamount.

8 provisions, contingent Liabilities and contingent Assets :

Provisions are created when there is a present obligation as a result of a past event that probably requires an outflow of resources and reliable estimate can be made of the amount of the obligation. Contingent liabilitiesarenotrecognisedbutaredisclosedinthenotestotheaccounts.Contingentassetsareneitherrecognised nor disclosed in the financial statements.

II notes to Accounts :

1 contingent Liability

Contingent liability in respectofguarantees furnishedbybankersonourbehalf for ‘Rs.�,94,�5,000/-(PreviousYearRs.�,33,6�,000/-)againstcounterguaranteesbytheholdingcompanytothebankersforthesameamount.

��3ISGec covema Limited

� Out of total issued, subscribed and paid up capital of 20,00,000 equity shares of ‘Rs.10/-each amounting to Rs.2,00,00,000/- The Saraswati Industrial Syndicate ‘Limited (Holding Company) holds 19,99,900 equity shares of Rs.10/-each fully paid up.

3 Balance due to / from parties are subject to confirmation by the respective parties.

4 AuditfeeincludestaxauditfeeofRs.�,000/-(PreviousyearRs.�000/-)

5 Previous year figures have been regrouped/recast wherever necessary to confirm to current year classification.

6 TheCompanyestimatesthedeferredtax(charges)/creditfortheyearusingtheapplicabletaxratebasedon the impact of timing difference between items in the financial statements and the estimated taxable incomeforthecurrentyear.ThemovementinprovisionforDeferredTaxisgivenbelow.

(Rs. In Lakhs)

ElementofDeferredTax Asat Credit/ Asat March.�009 (charge)during March.�0�0 theyear

Depreciation ��536 (6�9) ��9�7

OtherTimingDifference 48�04 - 48�04

NetDeferredTaxAssets 60740 (6�9) 60��

7 Amount due to Small Scale Industrial undertakings :

ThecompanyhasnotreceivedanyintimationfromsuppliersregardingtheirstatusundertheMicro,Small and Medium Enterprises Development Act,�006 and hence disclosures, if any, relating to theamount unpaid as at the year end together with interest paid or payable as required under the said Act havenotbeengiven.

8 Related party disclosures :

� Relatedpartieswithwhomthereweretransactionsduringtheyeararelistedbelow:

a directors: Mr. Aditya Puri, Mr. S.K. Khorana, Mr. L.M. Talwar, Mr. V.K. Sachdeva, Mr. P.L. Dhar

b Holding company :

(i) The company is a subsidiary of The Saraswati Industrial Syndicate Limited.

(ii) entities over which Mr. Ranjit puri, chairman and Mr. Aditya puri, director can exercise significant influence.

ISGEC Exports Limited , Saraswati Sugar Mills Limited and ISGEC Engineering & Projects Ltd. (Subsidiariesof�0(b)(i)above)

� Thefollowingtransactionswerecarriedoutwiththerelatedpartiesatnormalcommercialtermsintheordinarycourseofbusiness.


2.1 details relating to party referred to the item 8(b)(i) :

(Amount in Rs.)

31.03.2010 31.03.2009

i) ConsumableitempurchasedfortheHoldingCompany 34,53,��7 �,4�,93,��6

ii) Paymentforotherexpenses 8,4�,46� 7,89,893

iii) Counterguranteesgiventothebankersagainstguarantees �,94,�5,000 �,33,6�,000

furnishedbythebankers

iv) Interestpaid 53,93,9�0 5�,6�,579

v) Outstandingpayable/(receivable)bythecompany(Net)* 5,85,77,4�6 6,9�,35,998

* Transactionwiththeabovepartiesareaccountedintherespectivecurrentaccount.

2.2 details relating to party referred to the item 8(b)(ii) :

Amount due to SSM Limited (Net) 47,087,757 46,936,278

2.3 details relating to persons referred to the item 8(1)(a).

BoardMeetingfeetoDirectors 3,750 4,000

��5ISGec covema Limited

9 cash flow Statement for the year ended 31st March, 2010 FiguresinRupees

Year ended Year ended 31.03.2010 31.03.2009 A. cASH fLoW fRoM opeRATInG AcTIVITIeS Net profit before Tax 5,419,272 (1,938,650) Adjustmentfor: Depreciation 33,353 43,00� InterestIncome Operating Profit Before Working Capital Change 5,452,625 (1,895,649) Adjustmentfor: (Increase)/DecreaseinInventories 7,500,000 5,300,000 (Increase)/DecreaseinDebtors 37,0��,779 7,03�,3�� (Increase)/DecreaseinOthercurrentassets (Increase)/Decrease in Loans and Advances 39,642,903 3,123,738 Increase/(Decrease)inCreditors (80,7�4,9��) �5,506,3�6 CashGenerationfromOperation 8,903,395 39,065,7�7 DirectTaxespaid/Refundreceived (�,674,000) - Net cash flow From Operating Activities (Total of A) 7,229,395 39,065,727 B. cASH fLoW fRoM InVeSTInG AcTIVITIeS Purchase of fixed assets (3,700) (287,560) InterestReceived net cash used in Investing Activities (Total of B) (3,700) (287,560) c. cASH fLoW fRoM fInAncInG AcTIVITIeS Borrowings: Others (�0,558,57�) (33,��4,73�) net cash used in financial Activities (Total of c) (10,558,572) (33,114,732) d. net Increase / (decrease) in cash & cash equivalents (3,332,877) 5,663,435 (Total of A+B+c) opening balance of cash & cash equivalents 6,597,962 934,527 closing balance of cash & cash equivalents 3,265,085 6,597,962 note:TheaboveCashFlowStatementhasbeenpreparedunderthe“Indirectmethod”assetoutinAccounting

Standard-3onCashFlowStatementsissuedbyTheInstituteofCharteredAccountantsofIndia.


10 Balance Sheet Abstract and Company’s General Business ProfileI. Registration details RegistrationNo. �5908 StateCode55 BalanceSheetDate 3�/03/�0�0

II. capital Raised during the year (Amount in Rs.Lacs) PublicIssue RightsIssue NIL NIL BonusShares PrivatePlacement NIL NIL

III. position of Mobilisation and deployment of funds (Amount in Rs.Lacs)

Total Liabilities Total Assets 879.03 879.03 Sources of Funds Paid-up Capital Profit and Loss �00 93.�6 Secured Loans Unsecured Loans NIL 585.77 ApplicationofFunds NetFixedAssets Investments 484.99 NIL NetCurrentAssets Misc.Expenditure 394.03 NIL Accumulated Losses NIL

IV. performance of company (Amount in Rs.Lacs)

Turnover(GrossRevenue) TotalExpenditure �7�3.5� �659.33 Profit Before Tax Profit After Tax 54.�9 37.45 EarningperShareinRs. RateofDividend 1.87 NIL

V. Generic name of principal Services of company (as per monetary terms) ItemCodeNo.(ITCCode)

ProductDescription Erection&CommisioningofBoiler&SugarMachinery

for K.c.Malhotra & co. dinesh Kumar S.K. Khorana L.M. TalwarCharteredAccountants CompanySecretary Director Director(FirmRegn.No.57N)


Place:NewDelhi Date:07thAugust�0�0

��7ISGec exports Limited

AnnuAL RepoRT 2009-2010BoARd of dIRecToRSdirectors Mr.AdityaPuri

Mr.V.K.Sachdeva

Mr. L.M. Talwar

Mr. Y.L. Midha

Mr.V.D.Verma

Bankers StateBankofPatiala

Registered Office D-860,NewFriendsColony,

NewDelhi-��0065

��8 ISGec exports Limited

dIRecToRS’ RepoRTTotheMembers,

Your Directors present the �4th Annual Report on the business and operations of the Company and auditedStatementoftheAccountsfortheyear3�.03.�0�0.

1. fInAncIAL ReSuLTS: figures in Rs. / Lacs i) GrossIncome 6.00 ii) Net Profit before Tax 4.29 iii) Provisionfortaxation �.3� iv) Balance of previous year profit 9.80 v) Profit available for appropriation 18.26 vi) Balance carried forward to Profit & Loss A/c 18.26

2. dIVIdend:

TheBoardofDirectorsdonotrecommendanyDividendfortheyear.

3. WoRKInG of THe coMpAnY:

TheCompanyhasnotundertakenanyexportbusinessduringthelast�0-��years.

4. eneRGY, conSeRVATIon, TecHnoLoGY ABSoRpTIon, foReIGn eXcHAnGe eARnInGS And ouTGo:

-TheCompanycontinuestomakeeffortsinconservationofenergybyminimizingwastageinitslimitedareasofoperation.

-There has been no technology absorption and foreign exchange income or outflow during the above period.

5. fIXed depoSITS:

No fixed deposits from the public were accepted during the year.

6. AudIToRS:

The auditors, M/s. K.C. Malhotra & Co., Chartered Accountants have furnished a certificate that there appointment, if made, would be within the limits specified under Section 224(1B) of the Companies Act, 1956.

7. SecReTARIAL AudIToRS:

InaccordancewithSection383AoftheCompaniesAct,�956asamendedbytheCompanies(Amendment)Act, 2002 your company is required to obtain a Secretarial Compliance Certificate from a Company Secretary in whole time practice. Accordingly, a Compliance Certificate is attached hereto.

8. peRSonneL:

There was no employee in receipt of remuneration exceeding the limits as are prescribed under Section��7(�A)oftheCompaniesAct,�956,accordingly,thereisnothingtoreportunderCompanies(particularsofemployees)Rules,�975.

9. dIRecToRS:

Mr. V.K. Sachdeva and Mr. Yudhister Lal Midha being longest in office will retire by rotation in the forthcoming AnnualGeneralMeetingandareeligibleforre-appointment.


10. dIRecToR’S ReSponSIBILITY:

Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956 (‘the Act’) and based on the representations received from the operating management, your Directors hereby confirm that :-

i) InthepreparationoftheAnnualAccountsfor�009-�0,theapplicableAccountingStandardshavebeenfollowedandtherearenomaterialdepartures.

ii) TheyhaveselectedsuchaccountingpolicieswiththeconcurrenceoftheStatutoryAuditorsandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueand fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the financial year.

iii) They have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956. They confirm that there are adequate systems and controls for safeguarding the assets of the Company and for preventinganddetectingfraudandotherirregularities,

iv) Theyhavepreparedtheannualaccountsonagoingconcernbasis.

11. AppRecIATIonS:

The Directors’ placed on records their appreciation to all concerned for the co-operation extended to theCompany.

With these remarks, we present the Profit & Loss Account for the year ended 31.03.2010 and the Balance Sheet asonthatdate.

By the order of the Board

Place:NewDelhi. (V.d.Verma) (L.M. Talwar)Date:�3thAugust,�0�0 DIRECTOR DIRECTOR


SecReTARIAL coMpLIAnce ceRTIfIcATe

REGISTRATIONNO.OFTHECOMPANY : 55-76750

NOMINAL CAPITAL OF THE COMPANY : Rs. 10,00,000/-

To,

TheMembers,ISGEC Exports Limited,D-860,NewFriendColony,NewDelhi–��0065.

I have examined the registers, records, books and papers of ISGEC Exports Limited (the Company), as required to bemaintainedundertheCompaniesAct�956(theAct),andrulesmadethereunderandalsoprovisionscontainedin the Memorandum & Articles of Association of the Company, for the financial year ended 31st March, 2010. In my opinionandtothebestofmyinformationandaccordingtotheexaminationscarriedoutbymeandexplanationsfurnished to me by the Company, its officers and agents, I certify that in respect of the aforesaid financial year:-

�. TheCompanyhaskeptandmaintainedalltheregistersasstatedinAnnexure ‘A’ to this Certificate, as per the provisionsoftheActandtherulesmadethereunderandallentriesthereinhavebeendulyrecorded.

2. The Company has duly filed the forms and Returns as stated in Annexure ‘B’ to this Certificate with the Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the timeprescribedundertheActandrulesmadethereunder.

3. The Company is a Public Limited Company. The provisions relating to Limitation of number of members & invitationofPublicSubscriptiondoesnotapply.

4. TheBoardofDirectorsdulymetfourtimesrespectivelyon30.06.�009,�9.07.�009,3�.�0.�009&�9.0�.�0�0,inrespectofwhichpropernoticesweregivenandproceedingwererecordedandsignedintheMinutesBookmaintainedforthispurpose.

5. During the financial year under review, the Company has not closed its Register of Members, since its securities werenotlistedwithanyStockExchange.

6. The Annual General Meeting for the financial year ended on 31.03.2009 was held on 29.09.2009 after giving due noticetotheMembersoftheCompanyandtheresolutionspassedthereatweredulyrecordedinMinutesBookmaintainedforthispurpose.

7. No Extraordinary General Meeting was held during the financial year.

8. The Company has not advanced any loans to its Directors and/or persons or firms or Companies referred to underSection�95oftheAct.

9. TheCompanyhasnotenteredintoanycontractfallingwithinthepurviewoftheSection�97oftheAct.

�0. TheCompanyhasmadenecessaryentriesintheregistermaintainedunderSection30�oftheAct.

11. As there were no instances falling within the purview of section 314 of the Act, the Company was not required toobtainanyapprovalsfromtheBoardofDirectors,Members,orCentralGovernment.

12. The Company has not issued any duplicate Share Certificate during the financial year.

13. i) The Company has not received any request for transfer during the year, hence no transfer was made during the financial year.

ii) TheCompanyhasnotdepositedanyamountinseparateBankAccountasnodividendwasdeclaredduringthe financial year.

iii) The Company was not required to post warrants to any Member of the Company as no dividend was declared during the financial year.

��ISGec exports Limited

iv) Theprovisionrelatingtotransferoffundsetc.toInvestorsEducationandProtectionFundarenotattractedinthecaseoftheCompany.

v) The Company has duly complied with the requirements of section 217 of the Act, as applicable to it.

�4. TheBoardofDirectorsoftheCompanyisdulyconstituted.TherewasnoappointmentofAdditionalDirector(s),Alternate Director(s) and Director(s) to fill casual vacancy during the financial year.

�5. TheCompanyisbeingmanagedbytheBoardofDirectors.

16. The Company has not appointed any sole-selling agent during the financial year.

17. The Company was not required to obtain any approval of the Central Government, Company Law Board, RegionalDirector,RegistrarofCompaniesand/orsuchauthoritiesprescribedunderthevariousprovisionsofthe Act during the financial year.

18. The Directors have disclosed their interest in other firms/Companies to the Board of Directors pursuant to the provisionsoftheActandrulesmadethereunder.

19. The Company has not issued any Shares, Debentures or other Securities during the financial year.

20. The Company has not bought back any Shares during the financial year.

21. There was no redemption of Preference Shares or Debentures during the financial year.

22. There were no transactions during the financial year necessitating the Company to keep in abeyance the rights todividend,RightsSharesandBonusSharespendingregistrationoftransferofshares.

�3. TheCompanyhasnotinvited/acceptedorrenewedanyDepositsfallingwithinthepurviewofSection58Aofthe Act, during the financial year.

24. The Company has not taken any borrowings from other body corporate during the financial year falling within theProvisionsofSec.�93(�)(d)oftheAct.

25. The Company has not made any Loans/Investments or provided guarantees/securities to/ in respects of other bodies corporate falling within the purview of Section 372A of the Act, during the financial year.

�6. TheCompanyhasnotaltered theprovisionsofMemorandumwith respect to situationof theCompanys’registered office from one state to another, during the year under scrutiny.

�7. TheCompanyhasnotalteredtheprovisionsoftheMemorandumwithrespecttotheObjectsoftheCompanyduringtheyearunderscrutiny.

�8. TheCompanyhasnotalteredtheprovisionsoftheMemorandumwithrespecttoNameoftheCompanyduringtheyearunderscrutiny.

�9. TheCompanyhasnotalteredtheprovisionsoftheMemorandumwithrespectShareCapitaloftheCompanyduringscrutiny.

30. The Company has not altered its Article of Association during the financial year.

31. As per the explanations provided by the Officers of the Company, there was no prosecution initiated against or Show Cause Notice(s) received by the Company and no fines or penalties or any other punishment was imposedontheCompany,forcommittingoffencesundertheAct.

32. As per the explanations provided by the officers, the Company has not received any money as security from any of its employees during the financial year.

33. TheCompanydidnotdeductanyamounttowardsProvidentFundsduringthisFinancialyear.

Satya pal Bharti CompanySecretaryPlace:YamunaNagar FCS�3��Date:�3thAugust,�0�0 C.P.No.�906

�� ISGec exports Limited

AnneXuRe ’A’

Registers as maintained by the company :-

(I) Statutory Registers

�. RegisterofMembersu/s�50oftheAct.

�. MinutesofproceedingsofGeneralMeetingandofBoardMeetingsu/s�93oftheAct.

3. BooksofAccountsincludingFixedAssetsRegisteru/s�93oftheAct.

4. RegisterofContractsetc.u/s30�oftheAct.

5. RegisterofDirectorsetc.u/s303oftheAct.

6. RegisterofDirector’sShareholdingu/s307oftheAct.

7. Registerofchargesu/s�43oftheAct.

8. RegisterofInvestmentsu/s37�AoftheAct.

(II) other Registers

�. CommonSealRegister.

�. Director’sandMember’sAttendanceRegister.

3. ShareTransferRegister.

AnneXuRe ‘B’Forms & Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government or other authorities during the financial year ending 31st March 2010.

Sr. Forms Filed For Date of Whether filed If Delayed No No. /Return U/s Filing With in whether Late Fee timeYes/No paidYes/No

�. BalanceSheet ��0 AuditedAnnual �0.�0.�009 Yes No Accountsofthe Companyforthe yearended3�.03.�009

�. Compliance Certificate 383(A) Annual Certificate 14.10.2009 Yes No fromtheCompany Secretary

3. AnnualReturn �59 AnnualReturnofthe �7.��.�009 Yes No Companymadeup to�9.09.�009


Auditor’s ReportWe have audited the attached Balance Sheet of ISGEC Exports Limited as at 31st March, 2010 and also the Profit and Loss account for the year ended on that date annexed thereto and the Cash Flow statement for the year ended on that date. 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 standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefreeofmaterialmisstatement.Anauditincludesexaminingonatestbasis,evidencesupportingtheamountsand 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 believethatourauditprovidesareasonablebasisforouropinion.

As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies (Auditor’s Report) (Amendment)Order,�004(togetherthe‘Order’)issuedbytheCentralGovernmentofIndiaintermsofsub-section(4A)ofsection��7oftheCompaniesAct,�956ofIndia(the‘Act’)andonthebasisofsuchchecksofthebooksandrecordsofthecompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous, we report a statement on the matters specified in paragraph “4” and “5” of the said order.

1. The company has no fixed asset at the year end as the company has transferred its fixed asset (Land) to The Saraswati Sugar Mills Limited(subsidiary of The Saraswati Industrial Syndicate Limited) and therefore paragraph4(i)(a)to(b)oftheOrderarenotapplicable.Basedontheinformationandexplanationgiventousby the management, we are of the opinion that the transfer of the said fixed asset has not affected the going concernstatusofthecompany.

�. The Company do not have any inventory and therefore paragraph 4(ii) of Companies (Auditor’s Report)Order,�003isnotapplicabletotheCompany.

3. (a) (i) The company has granted unsecured advance to Saraswati Sugar Mills Limited (Subsidiary of The Saraswati Industrial Syndicate Limited) listed in the register maintained under Section 301 of the companiesAct,�956,therateofinterestandothertermsandconditionsofsuchadvanceare,prima-facie,notprejudicialtotheinterestofthecompany.ThemaximumamountoutstandingduringtheyearandtheyearendbalanceareRs.860347�/-andRs.860347�/-respectively.Therearenootherloans secured or unsecured, to companies, firms or other parties covered in the register maintained undersection30�ofthecompaniesAct,�956.

(ii) In respect of the aforesaid advance, the company was regular in payment of interest. We areexplainedthatsuchadvanceisrepayableondemandandtherefore,thereisnooverdueamountdueattheyearend.

(b) The company has not taken any loans secured or unsecured, from companies, firms or other parties coveredintheregistermaintainedundersection30�oftheCompaniesAct,�956.Accordinglyclauses(iii)bto(iii)dofparagraph4oftheorderarenotapplicabletothecompanyforthecurrentyear.

4. In our opinion and according to the information and explanation given to us, there are adequate internal controlprocedurescommensuratewiththesizeofthecompany,thenatureofitsbusinesswithregardtootherassets.Duringthecourseofouraudit,wehavenotnoticedanymajorweaknessesininternalcontrols.

5. (i). Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetransactionsthatneedtobeenteredintoaregisterinpursuanceofsection30�oftheCompaniesAct,�956,havebeensoentered.

(ii). Inouropinionandaccordingtotheinformationandexplanationgiventous,therearenotransactionsinpursuanceofcontractsoragreementsenteredintheregistermaintainedundersection30�oftheCompaniesAct, 1956, aggregating during the year to Rs. 5,00,000 (Rupees five lacs only) or more in respect of any party.


6. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotacceptedanydeposit fromthepublicandhence theprovisionsofclause4(vi)of theCompanies (Auditors’Report)order,�003regardingdepositfromthepublicarenotapplicabletotheCompany.

7. In our opinion, the company has an internal Audit System commensurate with its size and nature of theCompany’sbusiness.

8. MaintenanceofcostrecordshasnotbeenprescribedtothecompanybytheCentralGovernmentundersection�09(�)(d)oftheCompaniesAct,�956.

9 (a) Accordingtotheinformationandexplanationgiventousandrecordsofthecompanyexaminedbyus,inouropinion,undisputedduesIncomeTaxandotherstatutoryduesapplicabletoithavebeenregularlydepositedduringtheyearwiththeappropriateauthorities.WeareinformedthereisnoliabilitytowardsInvestor Education and Protection Fund, Employee’s State Insurance, Provident Fund, Wealth Tax,ServiceTax,SalesTax,Cess,CustomsDutyandExciseDutyfortheyearunderaudit.

(b) Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofIncomeTax,WealthTax,ServiceTax,SalesTax,CustomDuty,andExciseDuty,wereoutstandingasat3�stMarch,�0�0foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(c) AccordingtotherecordsoftheCompany,therearenoduesofSalesTax,IncomeTax,CustomsDuty,WealthTax,ServiceTax,ExciseDuty/Cesswhichhavenotbeendepositedonaccountofanydispute.

10. The company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or immediately preceding financial year.

��. Accordingtotheinformationandexplanationgiventous,weareoftheopinionthattheCompanyhasnotdefaultedinrepaymentofduestoFinancialInstitutions,Banks,orDebentureholders.

��. InouropinionandaccordingtotheinformationandexplanationgiventousnoloansandadvanceshavebeengrantedbythecompanyonthebasisofsecuritybywayofpledgeofShares,Debenturesandothersecurities.

13. In our opinion, the company is not a Chit fund or a Nidhi/Mutual benefit fund/Society. Therefore clause 4(xiii)oftheCompanies(Auditors’Report)order�003isnotapplicabletotheCompany.

�4. ThecompanyisnotdealingortradinginShares,Securities,Debenturesandotherinvestmentsandthereforeparagraph4(xiv)oftheorderisnotapplicable.

�5. ThecompanyhasnotgivenanyguaranteeforloanstakenbyothersfromBanksorFinancialInstitutions.

�6. Thecompanyhasnotraisedanytermloansduringtheyear.

�7. AccordingtotheinformationandexplanationgiventousandonanoverallexaminationoftheBalanceSheetoftheCompany,wereportthatnofundsraisedonshort-termbasishavebeenusedforlong-terminvestment.

�8. BasedonourexaminationofrecordandtheinformationprovidedtousbyManagementwereportthatthecompany has not made preferential allotment of shares to parties and companies covered in the registermaintainedundersection30�oftheCompaniesAct,�956.

�9. During theperiodcoveredbyouraudit report, thecompanyhasnot issueddebenturesand therefore thequestion of creation of any security in respect of these debentures does not arise.

�0. Thecompanyhasnotraisedanymoneybywayofpublicissueduringtheyear.

��. Basedupontheauditproceduresperformedandinformationandexplanationsgivenbythemanagement,wereportthatnofraudonorbythecompanyhasbeennoticedorreportedduringthecourseofouraudit.


Further to our comments referred to above, we report that we have obtained all the information andexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourAudit.In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books. The Balance Sheet and Profit and Loss account and Cash Flow Statement dealtwithbythisreportareinagreementwiththebooksofaccount.InouropiniontheBalanceSheetandProfit and Loss account and Cash Flow Statement dealt with by this report comply with the accounting standardsreferredtoinsub-section(3C)ofsection��oftheCompaniesAct,�956.Onthebasisofwrittenrepresentations received from the Directors, as on 3�st March, �0�0 and taken on record by the Board ofDirectors, we report that none of the Directors is disqualified as on 31st March, 2010 from being appointed as aDirectorintermsofClause(g)ofsub-section(�)ofsection�74oftheCompaniesAct,�956.Inouropinionandtothebestofourinformationandaccordingtotheexplanationgiventous,thesaidaccountsgivetheinformation required by the Companies Act, 1956, in the manner so required and gives a true and fair view in conformitywiththeaccountingprinciplesgenerallyacceptedinIndia.

(a) InthecaseoftheBalanceSheet,ofthestateofAffairsofthecompanyasat3�stMarch,�0�0.

(b) In the case of the Profit and Loss account of the Profit for the year ended on that date and

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

for K.c. MALHoTRA & co.CharteredAccountants

(FirmRegistrationNo.57N)

(Ramesh Malhotra)Place:NewDelhi PartnerDated:�3thAugust,�0�0 MembershipNo.�36�4


BALAnce SHeeT as at 31st March, 2010 (figures in Rupees) Schedule As At As At no. 31.03.2010 31.03.2009

Sources of funds : ShareholdersFunds: ShareCapital A �000000 �000000ReservesandSurplus B 7690590 8690590 6844�56 7844�56 Unsecured Loans c - 83�5�9�4ToTAL 8690590 90997180Application of funds : FixedAssets d - 83�5�9�4Current Assets, Loans and Advances : SundryDebtors e - -CashandBankBalances f 57598 885�5Loans and Advances G 865799� 8�03090 87�5590 8�9�6�5Less:Current Liabilities and Provisions Current Liabilities H �5000 30654Provisions: I - 3�6705 �5000 347359NetCurrentAssets: 8690590 7844�56ToTAL 8690590 90997180

Statement on Significant Accounting L policies and notes to the Accounts

As per our Report of even date Attached for K.c. Malhotra & co. H.R. Vij V.d. Verma L.M. Talwar CharteredAccountants Secretary Director Director (FirmRegn.No.57N)

(Ramesh Malhotra)PartnerMembershipNo.�36�4

Place:NewDelhi Dated:�3thAugust�0�0


pRofIT And LoSS AccounT for the year ended 31st March, 2010 (figures in Rupees) Schedule Year ended Yearended no. 31.03.2010 3�.03.�009 IncoMe : OtherIncome J 600838 6007 600838 6007eXpendITuRe : Purchases - -OperatingandOtherExpenses K �7�9�0 3�504 �7�9�0 3�504Profit for the year before Taxation 428918 (25497)ExcessProvisionofDoubtfulDebtsWrittenBack (�40994) -Currenttax �3�600 -Taxationadjustmentofpreviousyear (4090�3) -Profit after taxation 846335 (25497) Balance of Profit from Previous Year 979567 1005064Profit available for Appropriation 1825902 979567 Appropriation: BalancebeingSurplusCarriedtoBalanceSheet �8�590� 979567 �8�590� 979567Basic&DilutedEarningsPerShare(Rs.) 4.�9 (0.�5)Statement on Significant AccountingPoliciesandnotestotheaccounts L

As per our Report of even date Attached for K.c. Malhotra & co. H.R. Vij V.d. Verma L.M. Talwar CharteredAccountants Secretary Director Director(FirmRegn.No.57N)

(Ramesh Malhotra)PartnerMembershipNo.�36�4

Place:NewDelhi Dated:�3thAugust,�0�0



(FiguresinRupees)Schedule ‘A’ As at As atShare capital : 31.03.2010 31.03.2009 Authorised : 1,00,000 Equity Share of Rs. 10/- each 1000000.00 1000000.00Issued,Subscribed & paid up: 1,00,000 Equity Share of Rs. 10/- each fully paid up 1000000.00 1000000.00 �000000.00 �000000.00

Schedule ‘B’ Reserves and Surplus : GeneralReserve: AsperlastBalanceSheet 5864688 5864688Transfer from Profit and Loss Account - - 5864688 5864688Profit and Loss Account : SurplusasperAccountAnnexed �8�590� 979567 7690590 6844�55

Schedule ‘c’unSecuRed LoAn : Fromtheholdingcompanyviz.TheSaraswati Industrial Syndicate Ltd. - -From Saraswati Sugar Mills Ltd. (Subsidiary of the - 83152924Saraswati Industrial Syndicate Ltd.) - 83152924

Schedule ‘d’fIXed ASSeTS : Land 8,31,52,924 - 83152924Less: Transfer during the year 8,31,52,924 - 83152924



(FiguresinRupees)Schedule ‘e’ As at As atSundRY deBToRS (unsecured) : 31.03.2010 31.03.2009ConsideredDoubtful: Oversixmonthsold: - �40994Other - - - �40994.00Less : Provision for doubtful debts - 140994.00 - -

Schedule ‘f’cash and Bank Balances : WithScheduledBanks: InCurrentAccounts 57598 885�5 57598 885�5

Schedule ‘G’ Loans and Advances (unsecuredconsideredgood): Advancesrecoverableincashor inkindorforvaluetobereceived: Due from Saraswati Suger Mills Ltd. (Subsidiary of the Sarawati Industrial Syndicate Ltd.) 8603471 8103090Advance Tax Less Provision 54521 - 865799� 8�03090

Schedule ‘H’current Liabilities : Current Liabilities : Other Liabilities 25000 30654 �5000 30654

�30 ISGec exports Limited


(FiguresinRupees)Schedule ‘I’ As at As atprovisions : 31.03.2010 31.03.2009

ForTaxation(NetofAdvanceTax) - 3�6705 - 3�6705

Schedule ‘J’ other Income :

(Gross-TaxdeductedatsourceRs.94803/-previousyear.Nil)

InterestReceived 595�84 �508ExcessProvisionforExpensesWrittenBack 5654 3499 600838 6007

Schedule ‘K’operating and other expenses :

OtherExpenses: Rates&Taxes 900 900BadDebtsWrittenOff �40994 -Legal Expenses 3500 4000 GeneralExpenses �5�30 �54��InterestExpenses �03 -BankCharges ��93 �7�9�0 ��93 3�504 �7�9�0 3�504

�3�ISGec exports Limited


ScHeduLe ‘L’

A. STATeMenT on SIGnIfIcAnT AccounTInG poLIcIeS

(a) Basis of Accounting:

TheAccountshavebeenpreparedunderthehistoricalcostconventiononanaccrualbasisandcomplyinallmaterial aspects with the applicable accounting principles of India and accounting standards notified under sub-section(3C)ofSection��oftheCompaniesAct,�956.

(b) use of estimates:

The preparation of financial statement in conformity with generally accepted accounting principles requires management tomakeestimatesandassumptionsthataffectreportedamountsofassetsandliabilitiesanddisclosure of contingent liabilities, if any, at the date of financial statements and the results of operations duringthereportingperiodend.Althoughtheseestimatesarebaseduponmanagement’sbestknowledgeofcurrenteventsandactions,actualresultscoulddifferfromtheseestimates.

(c) Taxes on income:

Deferredtaxassets/liabilityhasnotbeenrecognizedsincetherewerenotimingdifferencesbetweentaxableincomeandaccountingincome.

(d) provisions, contingent Liabilities, contingent Assets:

The Company recognizes a provision when there is a present obligation as a result of a past event thatprobably requires an outflow of resources and reliable estimate can be made of the amount of obligation. A disclosureforcontingentliabilityismadewhenthereisapossibleobligationorapresentobligationthatmaybut probably will not require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

B. noTeS on AccounTS

(a) The entire subscribed capital of the company is held by The Saraswati Industrial Syndicate Limited – holding companyanditnominees.

(b) NoBoardMeetingFeeforattendingmeetingshasbeenpaidtotheDirectors.

(c) GeneralExpensesincludeauditfeeRs.�5000/-previousyearRs.�5,000/-(Inclusiveofservicetax).

(d) Previous year figures have been regrouped / recast wherever necessary.

(e) Basedontheinformationavailablewiththecompany,therearenoduestotheMicroandSmallEnterprisesasdefined under Micro, Small and Medium Enterprises Development Act, 2006.

(f) Sincetherewerenotimingdifferencesbetweentaxableincomeandaccountingincome,deferredtaxasset/liability has not been recognized as per requirement of Accounting Standard 22 “Accounting for taxes on income”issuedbytheInstituteofCharteredAccountantsofIndia.

�3� ISGec exports Limited

(g) Earningpershare:

3�.03.�0�0 3�.03.�009

i) Profit / Loss for the year after taxation 4,28,918 (25,497)

ii) Weighted average number of equity shares outstanding (Nos.) 1,00,000 1,00,000

iii) Facevalueofshare Rs.�0 Rs.�0

iv) Basicanddilutedearningspershare(Rs.) 4.�9 (0.�5)

(h) Natureofrelatedpartiesanddescriptionofrelationship.

a). (i) HoldingCompany:

TheCompanyisasubsidiaryoftheHoldingCompanyviz.TheSaraswatiIndustrialSyndicateLimited.

b). (ii) Entities over which Mr. Aditya Puri, Director can exercise significant influence.

- The Saraswati Industrial Syndicate Limited (Holding Company)

- The Saraswati Sugar Mills Limited (Subsidiary of b (i) above).

- ISGEC Covema Limited (Subsidiary of (b)(ii) above).

c). *Transactionswiththepartyreferredtointheitem(b)(ii)above:

3�.03.�0�0 3�.03.�009

Transfer of fixed asset – Land 8,31,52,924 -

Outstandingpayable/(receivable)bytheCompany(Net) (86,03,47�) 7,50,49,834

*Transactionwiththeabovepartyisaccountedinrespectivecurrentaccount

�33ISGec exports Limited

cash flow Statement for the year ended 31st March, 2010 FiguresinRupees Year ended Year ended 31.03.2010 31.03.2009A. cASH fLoW fRoM opeRATInG AcTIVITIeS : Net Profit Before Tax 428918 (25497) Adjustmentsfor: PreliminaryExpenses - - InterestIncome (595�84) (�508) InterestExpenses �03 - Operating Profit Before Working Capital Changes (166163) (28005) Adjustmentsfor: (Increase)/DecreaseinOtherCurrentAssets - - (Increase)/Decrease in Loans & Advances (500381) (8100000) Increase/(Decrease)inCreditors (5654) (3090) CashGeneratedFromOperations (67��98) (8�3�095)

InterestExpenses �03 -

DirectTaxesPaid/Refundreceived 45984 �4�7�

net cash flow from operating Activities (626111) (8116924)

B. cASH fLoW fRoM InVeSTInG AcTIVITIeS :

PurchaseofFixedAssets - (505�30)

InterestReceived 595�84 �508

net cash used in Investing Activities 595184 (502722)

c. cASH fLoW fRoM fInAncInG AcTIVITIeS :

TransferofFixedAssets 83�5�9�4 -

Borrowings:

-Others (83�5�9�4) 8676440

net cash used in financing Activities ( Total of c ) - 8676440

neT IncReASe/(decReASe) In cASH & cASH eQuIVALenTS (30927) 56794 Total of A+B+c

cash and cash equivalents as at 1st April, 2009 (opening Balance) 88525 31731

cash and cash equivalents as at 31st March, 2010 (closing Balance) 57598 88525 Notes: TheaboveCashFlowStatementhasbeenpreparedunderthe“IndirectMethod”assetoutinAccounting Standard-3onCashFlowStatementsIssuedbytheInstituteofCharteredAccountantsofIndia.

�34 ISGec exports Limited

BALAnce SHeeT ABSTRAcT And coMpAnY’S GeneRAL BuSIneSS pRofILeI. ReGISTRATIon deTAILS RegistrationNo 76750 StateCode 55 BalanceSheetDate 3�.03.�0�0II cApITAL RAISed duRInG THe YeAR (Amount in Thousands) PublicIssue RightIssue NIL NIL BonusIssue PrivatePlacement NIL NILIII poSITIon of MoBILISATIon And depLoYMenT of fundS (Amount in Thousands) Total Liabilities Total Assets 8,69� 8,69� SOURCESOFFUNDS: PaidupCapital ReserveandSurplus �,000 7,69� Secured Loans Unsecured Loans NIL NIL APPLICATION OF FUNDS: Net Fixed Assets Investments NIL NIL *NetCurrentAssets Misc.Expenditure 8,691 NIL Accumulated Losses NIL * Including Net Deferred Tax LiabilityIV peRfoRMAnce of THe coMpAnY (Amount in Thousand ) Turnover TotalExpenditure 600 �7� Profit Before Tax Profit After Tax 4�9 846 EarningperShare DividendRate(%) 8.46 -V GeneRIc nAMe of THRee pRIncIpAL pRoducTS/SeRVIceS of coMpAnY (Aspermonetaryterms) Item code no product description (ITCCode) 843830 SugarMachinery 84.0�� Boiler Signatures to Schedules ‘A’ to ‘L’, which form an integral part of the Accounts

As per our Report of even date Attached for K.c. Malhotra & co. H.R. Vij V.d. Verma L.M. Talwar CharteredAccountants Secretary Director Director(FirmRegn.No.57N)

(Ramesh Malhotra)PartnerMembershipNo.�36�4Place:NewDelhi Dated:�3thAugust,�0�0

Saraswati Sugar Mills Limited �35


BoARd of dIRecToRS

directors Mr.S.C.Jolly Mr.TahirHasan

Managing director Mr.AdityaPuri

chairman Mr.RanjitPuri

company Secretary Mr.J.K.Chowdhery

Bankers StateBankofPatiala CorporationBank OrientalBankofCommerce StateBankofTravancore PunjabNationalBankRegistered Office RadaurRoad YamunaNagar-�3500�(Haryana)

Saraswati Sugar Mills Limited�36

dIRecToRS’ RepoRT�.00 TheDirectorsherebypresenttheirAnnualReportfortheyearendedSeptember30,�0�0.

2.00 fInAncIAL ReSuLTS:

2.01 The financial results for the year are given below:

Rs. in Lacs

Profit before Depreciation 814.48

Depreciation �093.77

Loss for the year after Depreciation 279.29

Less: Excess Provision for Taxation including Deferred Tax 61.17

Transfer to General Reserve Account NIL

Proposed Dividend (including Dividend Tax) NIL

Balance Loss Transferred to P & L Account 218.12

2.02 The financial results for the year were not good, in view of high cane prices paid due to competition for cane. The cost of production was consequently high. The sugar realization was high during the period when the canewaspurchasedand,therefore,neighbouringmillswerewillingtopayahigherpriceforcane.However,thesugarpricesdeclinedrapidlyfromMarch�0�0.Theoverallsugarrealisationwasmuchlowerthanwhatwas anticipated and as a result the sugar factory ended the year showing a loss. The financial results were alsoaffectedduetoincreaseoflevy-freeratioto�0:80fromtheearlier�0:90forthisseason.

NosilverliningisseeninthecurrentyearastheAllIndiasugarproductionisexpectedtobehigherthanconsumption.

3.00 dividend:

3.01 In view of the financial results, the Directors have not recommended any dividend.

4.00 Review of the operations of the company:

4.0� Yourfactorystartedcrushingon��stNovember�009.

4.0� Asstatedearlier,yourfactoryhadtopayaveryhighcaneprice,muchabovetheStateAdvisedPrice,tosecure cane. As a result, the factory was able to crush 118 lac quintals of cane against 68.37 lac quintals of canecrushedinthelastseason.

4.03 Therecoverywasalsohigherthantheprecedingseason.

4.04 Thesugarprices,whichwereprevailingathigherleveltillMarch�0�0decreaseddueto:-

i) HigherAllIndiasugarproductionof�89lactonnesagainst�50to�60lactonnesanticipatedatthebeginningoftheseason.

ii) VariousregulatorymeasurestakenbytheCentralGovernmentandtheStateGovernmentswiththeaimofloweringsugarprices.Theseincludeloweringofsugarstocklimits,bothforbulkconsumersaswell as for dealers, and changing the quota for the sale of sugar from monthly basis to weekly basis.


4.05 Thestatisticalpositionisgivenbelow:

particulars Season

2009-10 2008-09

All India Production of Sugar (Lac Tonnes) 189 146

All India Consumption of Sugar (Lac Tonnes) 210 230

Production of Sugar by SSM (Lac Tonnes) 1.2226 * 0.681

Closing Stock SSM (Lac Tonnes) 0.279 0.129

Cane Crush by SSM (Lac Tonnes) 11.82 6.84

Recovery% �0.�� 9.97

*including0.0�53lactonnesfromrawsugar.

current Season – 2010-11:

4.06 TheCentralGovernmenthasrevisedthelevy-freeratiofrom�0:80to�0:90whichwasalsoprevailingpriortotheseason�009-�0.

4.07 The Central Government has announced Fair & Remunerative Price (FRP) of Rs.139.12 per quintal for season 2010-11 against Rs.129.84 per quintal for season 2009-10, linked to 9.5% recovery. The FRP for your factory for season 2010-11 is likely to be approximately Rs.149.34 per quintal against Rs.136.69 per quintal in 2009-10.

4.08 While the FRP is determined by the Central Government, the State Governments have also fixed State Advised Price (SAP). The Government of Haryana, has fixed the SAP as follows:-

i) Early Variety : Rs. 220/- per quintal (increase of Rs. 35/- per quintal over the season 2009-10).

ii) Mid Variety : Rs. 215/- per quintal (increase of Rs. 35/- per quintal over the season 2009-10).

iii) Late Variety : Rs. 210/- per quintal (increase of Rs. 35/- per quintal over the season 2009-10).

4.09 TheAllIndiasugarproductionduringthecurrentseasonislikelytobemuchhigherthantheprecedingseason.

4.�0 Inviewoftheexpectedhigherproduction,theCentralGovernment,whichhadbannedtheexportofsugar,including export under Advance Licensing Scheme obligations, had partially removed the ban.

4.�� Thecaneavailabilityduringtheseasonisexpectedtobebetterthanthepreviousseasonbecauseofincreasein the cane area. The cane availability would have been much better but for the impact of extensive floods in someofthecanearea.

4.�� Thoughthelevy-freeratiohasbeenreducedfrom�0:80to�0:90andtheavailabilityofcaneduringthecurrentseasonislikelytobebetterthanthepreviousseason,thelowersugarpricesarelikelytoresultinadversefinancials for this season.

5.00 The company had filed Industrial Entrepreneurship Memoranda (IEMs) for setting up sugar mills at Kurali and BhartolivillagesnearYamunanagar.TheCentralGovernmenthasrecognizedtheseIEMson9thNovember�0�0and�9thOctober�0�0respectively.

6.00 eneRGY conSeRVATIon, TecHnoLoGY ABSoRpTIon, foReIGn eXcHAnGe eARnInGS & ouTGo:

6.0� IncompliancewiththeprovisionsofSection��7(�)(e)oftheCompaniesAct,�956,thestatementgivingtherequired information is annexed hereto.


7.00 pARTIcuLARS of eMpLoYeeS:

7.01 The particulars of the employees as required under Section 217(2A) of the Companies Act, 1956, are given in theAnnexure.

8.00 dIRecToRS’ ReSponSIBILITY STATeMenT:

8.01 The Directors’ Responsibility Statement as required under Section 217(2AA) of the Companies Act, 1956 is enclosed.

9.00 fIXed depoSITS:

9.0� Theamountofdepositwiththecompany,asatthecloseoftheyear,waswellwithinthelimitsprescribedundertheprovisionsoftheCompaniesAct.88depositorsofthecompanyhad,asonSeptember30,�0�0,notclaimedtheirdepositsuptotheduedatesforrepayment.TheamountinvolvedwasRs.67.94lac.

10.00 AcKnoWLedGeMenTS:

�0.0� TheDirectorsappreciatetheservicesandco-operationofthestaffandtheworkmenduringtheyearunderreport.

�0.0� TheDirectorsalsoplaceonrecordtheirappreciationoftheBanksandFinancialInstitutionsforpromptfinancial assistance and co-operation.

�0.03 Withtheseremarks,wepresenttheAccountsfortheyearendedSeptember30,�0�0.

BYORDEROFTHEBOARD

RanjitPuriDated:��ndNovember,�0�0 Chairman


AnneXuRe To dIRecToRS’ RepoRTpARTIcuLARS ReQuIRed undeR THe coMpAnIeS

(dIScLoSuRe of pARTIcuLARS In THe RepoRT of BoARd of dIRecToRS) RuLeS, 1988.

A. conSeRVATIon of eneRGY:

(a) Measures taken during 2009-10:

i) �stvapourheatingarrangementformolassesconditioning.

ii) InstallationofPlateTypeHeatExchangerforSuperHeatedWashWaterforhighgradeCentrifugalMachines.

iii) UseofVapourCellCondensatefor‘B’&‘C’SugarMelter.

(b) Measures proposed for 2010-11:

i) Modification of Evaporator Stations for reduction in Steam Consumption.

ii) Modification of Saraswati Mills for reduction in Bagasse moisture & Pol by installing new Swing TypeFibrizor.

iii) Modification of Yamuna Mills for reduction in Bagasse moisture & Pol by replacing Shredder TurbinewithAnvilPlate&newCaneCutter.

(c) Impact of Measures:

Additionalbagassesavingof0.�6%oncane.

(d) Total energy consumption and energy consumption per unit of production.

ThesearedetailedinForm‘A’enclosed.

B. TecHnoLoGY ABSoRpTIon:

(e) efforts made in Technology Absorption.

ThesearedetailedinForm‘B’enclosed.

c. foReIGn eXcHAnGe eARnInGS And ouTGo:

(f) Activitiesrelatingtoexport,initiativestakentoincreaseexports,developmentofnewexportmarketsforproductsandservicesandexportplans.

Nosugarwasexported.

(g) Total foreign exchange used and earned (2009-10)

(Amount in Rs./Lacs)

- TotalForeignExchangeused Nil

- TotalForeignExchangeearned Nil

Encl:Asabove.


foRM ‘A’form for disclosure of particulars with respect to conservation of energy

current Year previous Year 2009-2010 2008-2009A. poWeR & fueL conSuMpTIon :1. electricity : a) Purchased(Units) (KWH) �,6�7,636 �,5�8,780 TotalAmount (Rs.) �3,48�,3�� ,95�,903 Rate/unit (Rs./unit) 5.�3 4.75 b) OwnGeneration: i) ThroughSteamTurbine: Units (KWH) 36,367,004 �3,5�8,640 Unit per qtl. of bagasse (Units) 206 205 Cost/unit (Rs./unit) �.94 �.38 ii) ThroughD.G.Set: Units (KWH) ��3,9�5 307,438 Unitperlitre.ofdiesel (Unit) �.95 3.0� Cost/unit (Rs./unit) �3.0� ��.642. furnace oil : Quantity (Ltrs.) - 13,500 TotalAmount (Rs.) - �75,05� Average Rate (Rs./Ltr.) - 20.373. others: a) Bagasse: Quantity (Qtls.) �,9��,646 �,939,�38 TotalCost (Rs.) 537,0�3,477 3�0,359,053 Rate/unit (Rs./Qtl.) �84.44 �60.05 b) HighSpeeddieseloil: Quantity (Ltrs.) 76,000 102,000 TotalCost (Rs.) �,578,784 3,�7�,6�0 Rate/unit (Rs./Ltr.) 33.93 32.07 c) SawDust: Quantity (Qtls.) ��,�67.80 ��,56�.80 TotalCost (Rs.) 3,�9�,�83 �,904,568 Rate/unit (Rs./Qtl.) �70.48 �5�.�0 d) Firewood: Quantity (Qtls.) �0.80 �7.�5 TotalCost (Rs.) ��,856 9,43� Rate/unit (Rs./Qtl.) 570.00 549.97 f) Woodenchips: Quantity (Qtls.) �0,6�0.05 - TotalCost (Rs.) �,783,807 - Rate/unit (Rs./Qtl.) �6�.�3 -B. consumption per unit of production (Sugar per qtl.) Electricity(Units) (KWH) 3�.�� 38.66 Furnace Oil (Ltrs.) 0.0000 0.0198 SawDust (Qtls.) 0.0�0 0.0�70 WoodChips (Qtls.) 0.0087 - High Speed Diesel Oil (Ltrs.) 0.0620 0.1497 others (Specify) : Bagasse (Qtls.) �.38 �.85

Saraswati Sugar Mills Limited �4�

Reasons for variation in the consumption of power and fuel from previous year :Consumption of power & fuel is lower due to comparatively smooth working of factory. Last year there was intermittentworkingofthefactoryasaresultofstoppagesonaccountofnon-availabilityofcane.

foRM ‘B’ form for disclosure of particulars with respect to technology absorption, 2009-10.

ReSeARcH & deVeLopMenT:I. Specific areas in which R&D carried out by the company: i) WiderSpaceplantingofsugarcane. ii) Trenchmethodofplanting. iii) Soiltesting. iv) Cultivationofnewhighsugaredvarieties. v) Integratedpest&diseasemanagement.II. Benefits derived: i) Improvementincaneyields. ii) Improvement in sugar recovery and cane quality. iii) Betterratoonability. iv) Applicationofbalanceddoseoffertilizers.III. future plans:Effortswillcontinuetoachievehigherrecoveryandsugarcaneyield.IV. expenditure on R & d: (FiguresinRs./lacs) i) Capital Nil ii) Recurring 6.43 iii) Total 6.43 iv) TotalR&Dexpenditureasapercentageoftotal Turnoveroftheunit. 0.0�9%TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:�. Efforts made and benefits derived as a result of the above: Notapplicable.�. particulars of Technologies imported during the last 5 years: Notapplicable.

directors’ Responsibility Statement under Section 217 (2AA) of the companies Act, 1956

Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956 (‘the Act’) and based on the representations received from the operating management, your Directors hereby confirm that:(i) in the preparation of the Annual Accounts for �009-�0, the applicable Accounting Standards have been

followedandtherearenomaterialdepartures,(ii) theyhaveselectedsuchaccountingpolicieswiththeconcurrenceoftheStatutoryAuditorsandappliedthem

consistentlyandmadejudgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairview of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the financial year,

(iii) they have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956. They confirm that there are adequate systems and controls for safeguarding the assets of the Company and for preventing anddetectingfraudandotherirregularities,

(iv) theyhavepreparedtheAnnualAccountsongoingconcernbasis.

Saraswati Sugar Mills Limited�4�

AudIToR’S RepoRTTo the members of Saraswati Sugar Mills Limited

We have audited the attached Balance Sheet of Saraswati Sugar Mills Limited as at 30th September, 2010 and the Profit & Loss Account and also the Cash Flow Statement of the Company 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.

WehaveconductedourauditinaccordancewithauditingstandardsgenerallyacceptedinIndia.ThoseStandardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. Webelievethatourauditprovidesareasonablebasisforouropinion.

As required by the Companies (Auditors’ Report) Order, 2003 as amended by Companies (Auditors’ Report) (Amendment)Order,�004(collectivelytheOrder)issuedbytheCentralGovernmentofIndiaintermsofSection��7(4A)oftheCompaniesAct,�956andonthebasisofsuchchecksasweconsideredappropriateandaccordingto the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs4and5ofthesaidOrder.


a) Wehaveobtainedalltheinformationandexplanationswhich,tothebestofourknowledgeandbelief,werenecessaryforthepurposesofouraudit;

b) In our opinion, proper books of account, as required by law, have been kept by the Company so far as appears fromourexaminationofthosebooks;

c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement withthebooksofaccount;

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement, dealt with by this report, comply withtheAccountingStandardsreferredtoinsub-section(3C)ofSection��oftheCompaniesAct,�956.

e) OnthebasisofwrittenrepresentationsreceivedfromtheDirectorsason30thSeptember,�0�0andtakenonrecordby the Board of Directors, we report that none of the directors is disqualified as on 30th September, 2010 from beingappointedasadirectorintermsofclause(g)ofsubsection(�)ofsection�74oftheCompaniesAct,�956.

f) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccountsread together with the Accounting policies and Notes thereon, 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 generallyacceptedinIndia:

i) InthecaseofBalanceSheet,ofthestateofaffairsoftheCompanyasat30thSeptember,�0�0;

ii) In the case of Profit and Loss Account, of the loss for the year ended on that date; and

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

for S.S. KoTHARI MeHTA & co. CharteredAccountants FirmRegn.No.000756N

(ARun K. TuLSIAn)Place:Noida PartnerDated:��ndNovember,�0�0 MembershipNo.089907


AnneXuRe To AudIToRS’ RepoRT(Annexure referred to in our report of even date)

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Company has a phased programme of physical verification of its fixed assets which, in our opinion, is reasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Managementhasphysicallyverified major fixed assets during the year. There were no major discrepancies noticed on such verification between the physical balances and fixed assets records.

(c) Fixedassetsdisposedoffduringtheyearwerenotsubstantial.

2. (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable.

(b) The procedures for the physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and nature of its business

(c) Inouropinion,theCompanyismaintainingproperrecordsofinventory.Thediscrepanciesnoticedonphysical verification of inventory as compared to book records were not material and have been properly dealtwithinthebooksofaccount.

3. (a) The Company has not given any loan, secured/unsecured, to companies, firms or other parties covered in theregistermaintainedundersection30�oftheCompaniesAct,�956.

(b) Sincetherearenosuchloans,commentsonrepaymentoftheprincipalamountandinterestthereonandoverdue amount at the year end are not required.

(c) Thecompanyhastakenunsecuredloansfromtwocompanies(includingholdingcompany)andfromaDirector in the form of fixed deposits, listed in the register maintained under section 301 of the Companies Act,�956.Apartfromthese,thecompanyhasnotacceptedanyotherloans,securedorunsecured,fromcompanies, firms or other parties listed in the register maintained under section 301 of the Companies Act, �956.Fortheloantakenfromcompaniesanddirector,themaximumbalanceoutstandingduringtheyearisRs.764�.93lacsandbalanceoutstandingatendoftheyearisRs.��34.9�lacs.Inouropinion,therateofinterestandotherterms&conditionsforrepaymentoftheprincipalamount&interestthereonarenot,primafacie,prejudicialtointerestofcompany.

(d) Inrespectoftheaforesaidloans,thecompanywasregularinpaymentofinterest.Weareexplainedthatthe loan from two Companies is repayable on demand and fixed deposits from a director have not fallen dueforrepayment,therefore,therearenooverdueamountsattheyearend.

4. Inouropinion,andaccordingtotheinformationandexplanationsgiventousduringthecourseofaudit,thereare adequate internal control systems commensurate with size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examinationofthebooks&recordsofthecompany,carriedout inaccordancewiththegenerallyacceptedauditingpracticesinIndia,wehaveneithercomeacrossnorhavewebeeninformedofanyinstanceofmajorweaknessesintheaforesaidinternalcontrolsystems.

5. (a) Basedontheauditproceduresappliedbyusandaccordingtotheinformationandexplanationsgiventous, we are of the opinion that the particulars of contracts and arrangements required to be entered into the registermaintainedundersection30�oftheActhavebeensoentered.

(b) Inouropinion,andaccordingtotheinformationandexplanationsgiventous,thetransactionsmadeinpursuanceofcontractsorarrangementsenteredintheregistermaintainedunderSection30�oftheActand aggregating during the year to Rupees five lakhs or more in respect of each party have been made at priceswhicharereasonablehavingregardtomarketpricesforsuchtransactions,prevailingattherelevanttime,wheresuchmarketpricesareavailable.


6. TheCompanyhascompliedwiththedirectivesofReserveBankofIndiaandsections58Aand58AAoranyotherrelevantprovisionsoftheCompaniesAct,�956includingtheCompanies(AcceptanceofDeposit)Rules,1975 with regard to fixed deposits accepted from public.

7. Inouropinion,theCompanyhasanin-houseinternalauditsystemcommensuratewiththesize&natureofitsbusiness.

8. WehavebroadlyreviewedtheCostAccountingrecords,maintainedbytheCompanypursuanttotheRulesprescribedbytheCentralGovernmentforthemaintenanceofcostrecordsunderclause(d)ofsub-section(�)ofsection�09oftheAct,andareoftheopinionthat,primafacie,theprescribedaccountsandrecordshavebeen made and maintained. We are, however, not required to make a detailed examination of such books and records.

9. (a) AccordingtotherecordsoftheCompany,undisputedstatutoryduesincludingProvidentFund,InvestorEducationandProtectionFund,EmployeesStateInsurance,Income-tax,Sales-tax,Wealth-tax,ServiceTax,CustomDuty,ExciseDuty,Cessandothermaterialstatutorydues,whereverapplicable,havebeengenerallyregularlydepositedwiththeappropriateauthoritiesduringtheyearandtherearenosuchundisputedstatutoryduesoutstandingasonthedateofBalanceSheetforaperiodexceedingsixmonthsfromthedatetheybecamepayable.

(b) Accordingtotheinformation&explanationsgiventousandasperthebooksandrecordsexaminedbyus,therearenoduesofIncomeTax,CustomDuty,WealthTax,ServiceTaxandCesswhichhavenotbeendepositedonaccountofanydispute,exceptthefollowinginrespectofSalesTax&ExciseDutyalongwiththeforumwheredisputeispending:

name of theStatute

nature ofdues

Year Amount (Rs. in lacs)(net of payments)

forum where dispute is pending

CanePurchaseTaxAct Canepurchasetax �99�-�996 3�.98 CivilCourt,Jagadhri-Haryana

CentralExciseAct ExciseDuty May-06toSep-07

9.4� CESTAT-Chandigarh

10. There are no accumulated losses of the Company at the end of the financial year. The company has not incurred cash losses during the current financial year and the immediately preceding financial year.

��. Accordingtotheinformationandexplanationsgiventousandasperthebooksandrecordsexaminedbyus,the Company has not defaulted in repayment of dues to any financial institution or bank.

��. Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotgrantedanyloansandadvancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.

13. The Company does not fall within the category of Chit fund / Nidhi / Mutual Benefit fund / Society and hence the related reporting requirements of the Order are not applicable.

�4. Accordingtotheinformationandexplanationsgiventous,theCompanyisnotdealingortradinginshares,securities,debenturesandotherinvestments.

15. The company has not given any guarantee to bank or financial institutions for loan taken by others from bank or financial institutions.

�6. Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermloansraisedduringtheyearbytheCompanyhavebeenappliedforthepurposeforwhichthesaidloanswereobtained,wheresuchendusehasbeenstipulatedbythelenderexceptincaseofSDFloanofRs.�07lacsformodernisationofplant,thesamewasnotutilizedandsincerepaidinNovember�0�0.

�7. Accordingtotheinformation&explanationsgiventousandasperthebooksandrecordsexaminedbyus,asonthedateofbalancesheet,thefundsraisedbythecompanyonshorttermbasishavenotbeenappliedforlongterminvestment.


�8. TheCompanyhasnotmadeanypreferentialallotmentofsharestopartiesandCompaniescoveredintheregistermaintainedundersection30�oftheCompaniesAct,�956.

�9. TheCompanyhasnotissuedanydebenturesduringtheyearnorarethereanyoutstandingdebentures.

�0. TheCompanyhasnotraisedanymoneybywayofpublicissuesduringtheyear.

��. DuringthecourseofourexaminationofthebooksandrecordsoftheCompanycarriedoutinaccordancewiththegenerallyacceptedauditingpracticesinIndia,wehaveneithercomeacrossanyinstanceoffraudonorbytheCompany,noticedandreportedduringtheyear,norhavewebeeninformedofsuchcasebythemanagement.

for S.S. KoTHARI MeHTA & co. CharteredAccountants FirmRegn.No.000756N

(ARun K. TuLSIAn)Place:Noida PartnerDated:��ndNovember,�0�0 MembershipNo.089907


BALAnce SHeeT as at 30th September, 2010 (Rs. In Lacs) Schedule As at As atSouRceS of fundS no. 30.09.2010 30.09.2009Shareholders’ funds ShareCapital A 709.99 709.99 Reserves&Surplus B 12461.50 ��679.6� 13171.49 �3389.6�Loan funds Secured Loans c 2277.38 3�88.�9 Unsecured Loans d 3073.36 �85�.30 5350.74 5040.59 Deferred Tax Liability (Net) 1195.42 �40�.59 [(Refernote��.b)onScheduleVIIIand note6onScheduleIX] ToTAL 19717.65 19831.79AppLIcATIon of fundSfixed assets GrossBlock e 21816.72 �0��7.55 Less: Depreciation 8089.44 700�.7� NetBlock 13727.28 �3��5.83 CapitalWorkinProgress 361.88 14089.16 �536.45 �475�.�8Investments f 305.35 3577.65current Assets,Loans and Advances Inventories G 7711.46 �834.64 SundryDebtors H 779.33 954.54 Cash&Bankbalances I 745.11 3574.49 OtherCurrentAssets J 9.22 3�.54 Loans & Advances K 1237.89 7�5.75 10483.01 8��0.96Less:Current Liabilities and Provisions Liabilities L 4351.48 3667.36 Provisions M 808.39 �95�.74 5159.87 66�9.�0NetCurrentAssets 5,323.14 �50�.86 ToTAL 19717.65 19831.79Statement on Significant Accounting Policies VIIInotes to Accounts IX

As per our report of even date The Schedules referred to above form an integral part of the Balance Sheet.

for S.S.KoTHARI MeHTA & co. R. K. Verma Kishore chatnaniCharteredAccountants DGM(Finance) Sr.VicePresident(Finance&Accounts)(FirmRegn.No.000756N)

(ArunK.Tulsian) J. K. chowdhery S. K. KhoranaPartner Sr.VicePresident&Company ExecutiveDirector(Finance)MembershipNo.:89907 Secretary

Place:Noida S. c. Jolly Aditya puriDate:��ndNovember,�0�0 Director ManagingDirector


pRofIT & LoSS AccounT for the year ended 30th september, 2010 (Rs. In Lacs) ScHeduLe Year ended Year ended no 30.09.2010 30.09.2009IncoMe GrossSales I 33766.78 39855.87 Less: Excise Duty 1461.27 �876.90 NetSales 32305.51 37978.97 OtherIncome II 1138.97 5�6.�� Increase/(Decrease)instockofFinishedGoods &PartlyProcessedSugar III 4880.42 (��437.65) ToTAL 38324.90 �7067.43eXpendITuRe Manufacturingexpenses IV 33331.96 �3377.79 EmployeeCost V 2618.78 �499.�0 Administration&SellingExpenses VI 603.40 807.67 InterestandFinancialCharges VII 956.28 ��37.69 Depreciation 1093.77 ��4.�4 ToTAL 38604.19 �9�36.39 Profit/ (Loss) for the year before tax. (279.29) 793�.04 ProvisionforTax: IncomeTax 145.00 ��03.�6 Less: MAT Credit Entitlement - (8�.�6) Fringe Benefit Tax - 6.43 DeferredTax (206.17) 584.56 (218.12) 53�9.05 Brought Forward from Last Year 5717.62 �59�.88 Profit available for Appropriation 5499.50 79�0.93 ProposedDividend - �,4�9.98 CorporateDividendTax - �4�.33 TransferredtoGeneralReserve - 53�.00 BalancecarriedtoBalanceSheet 5499.50 57�7.6� Basic/Diluted Earnings/(Loss) per share (Rs.) (5.98) 83.15 [ReferNote��onScheduleIX]

Statement on Significant Accounting Policies VIIINotestoAccounts IX

As per our report of even date The Schedules referred to above form an integral part of the Profit & Loss Account.





Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 (Rs. In Lacs)Schedule ‘A’ As at As at 30.9.2010 30.9.2009SHARe cApITALAuthorised :71,00,000 (Previous year 71,00,000) Equity shares of Rs.10/- each 710.00 7�0.00Issued,Subscribed and paid up. 70,99,900 Equity Shares of Rs.10/- each 709.99 709.99notes:Entire Share Capital is held by the holding company, The Saraswati Industrial Syndicate Ltd. and its nominees.

Schedule ‘B’ReSeRVeS And SuRpLuS (Rs. in Lacs) As at As at 01.10.2009 Additions deductions 30.09.2010SecuritiesPremium 6300.00 - - 6300.00 (6300.00) (-) (-) (6300.00)GeneralReserve 662.00 - - 662.00 (�30.00) (53�.00) (-) (66�.00)Profit and Loss Account Balance 5717.62 -218.12 - 5499.50 (�59�.88) (3��5.74) (-) (57�7.6�) 12679.62 -218.12 - 12461.50 (90��.88) (3657.74) (-) (��679.6�)note:Previous year figures are indicated in parenthesis

Schedule ‘c’ (Rs. In Lacs) As at As at 30.09.2010 30.09.2009SecuRed LoAnS(Refernote�0onScheduleVIII)FromFinancialInstitutionsandBanks:Term Loan (Note 1 & 3) 2277.38 3��0.37CashCreditAccounts(Note�) - 67.9� 2277.38 3�88.�9notes: �. SecuredbyresidualchargeonimmovablepropertiesofthecompanylocatedatYamunanagarbothpresent&

futureandmortgage/hypothecationofmovableassets(saveandexceptbookdebtsandinventorieschargedin favour of company’s bankers for working capital requirements).

�. Securedbysecondchargeonimmovablepropertiesofthecompanybothpresent&future,andmortgage/hypothecationofmovableassets.

3. Amount repayable with in one year Rs.1458.72 Lacs, Previous Year Rs. 822.66 Lacs

Schedule ‘d’ (Refernote�0onScheduleVIII) unSecuRed LoAnS-FromtheHoldingCompanyviz.TheSaraswati 1141.73 337.85Industrial Syndicate Limited- From ISGEC Exports Ltd. 88.20 83.8�Sugar Development Fund Loan (For cane development & 357.00 -purchaseofmachineryforprocessingofRawSugar)FixedDeposits* 1486.43 �430.63 3073.36 �85�.30* Fixed Deposits include deposits received from Directors Rs. 5 Lac ( Previous Year Rs.5 Lac)

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Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 Schedule ‘f’ (Rs. In Lacs)(Refernote6onScheduleVIII) As at As at 30.09.2010 30.09.2009InVeSTMenTSnon-Trade InvestmentsLong term at cost (unquoted)Post Office Saving Account 0.60 0.60(PledgedasSecuritywithvariousGovernmentDepartments)Investment in other companies (Quoted)265000 (Previous year 265000) equity shares of Rs.10/- eachof DCM Shriram Industries Ltd. 304.75 304.75(Marketvalueason30-09-�0isRs.�30.�8lacs)(Previous Year Rs.405.45 Lacs)current at cost (unquoted)Mutual funds:- SBISHFUltraShortTermFund(CurrentyearNil, (PreviousYear(6093049.�0unitsofRs.�0/-each) - 609.63 Rs. 609.63 Lacs)- RelianceMoneyManagerFund-RetailOption CurrentyearNil,(Previousyear(5054.0�unitsof - 50.59 Rs.�000/-each)Rs.50.59lacs)- RelianceMoneyManager-InstitutionalOption CurrentyearNil(Previousyear(�609��.44unitsof - �6��.08 Rs.�000/-each)Rs.�6��.08lacs) 305.35 3577.65AggregateBookValueofInvestments:Unquoted 0.60 3�7�.90Quoted 304.75 304.75 305.35 3577.65

Schedule ‘G’ (Refernote4onScheduleVIII) InVenToRIeSStoresandSpareParts 520.78 5�4.38PartlyProcessedSugar 25.77 ��.07FinishedStock:Sugar 6882.03 �990.38Molasses 282.88 �98.8� 7711.46 �834.64


Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 (Rs. In Lacs)

As at As atSchedule ‘H’ 30.09.2010 30.09.2009

SundRY deBToRS

(unsecured considered good unless otherwise stated)

Debtsoutstandingforaperiodexceedingsixmonths

- ConsideredGood 1.00 ��.�5

- ConsideredDoubtful 80.07 80.50

OtherDebts 778.33 943.�9

Less: Provision for Doubtful Debts 80.07 80.50

779.33 954.54

Schedule ‘I’

cASH And BAnK BALAnceS

Cashinhand 13.04 ��.3�

Cheques in hand 220.69 �99.�8

WithScheduledBanksin:CurrentandCashCreditAccounts 461.22 �96.5�

FixedDeposits 50.15 3067.3�

StampsinFrankingMachine&depositwith 0.01 0.06Post Office

745.11 3574.49

Schedule ‘J’

oTHeR cuRRenT ASSeTS

(unSecuRed conSIdeRed Good)

InterestaccruedonInvestment

- FixedDeposits 9.22 3�.54

- Others - -

9.22 3�.54


Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 (Rs. In Lacs) As at As at Schedule ‘K’ 30.09.2010 30.09.2009LoAnS And AdVAnceS(unSecuRed conSIdeRed Good)SecurityDeposits 41.40 4�.37Advancesrecoverableincashorinkindorforvaluetobereceived[(includingcapitaladvances 685.49 403.83Rs. 95.60 Lacs (Previous year Rs. 0.23 Lacs)]BalancewithExciseandCustoms 69.49 50.30ClaimspendingwithGovt. 441.51 �48.09MATCreditEntitlement - 8�.�6 1237.89 7�5.75

Schedule ‘L’

cuRRenT LIABILITIeSSundryCreditors(Refernote7onscheduleIX) 3395.46 3003.3�Otherliabilities 65.74 5�.63AdvancesfromCustomers 101.39 �5.84Excisedutypayable 417.00 �73.5�Securityandotherdeposits 111.21 68.75Interest accrued but not due on Loans 172.93 �04.�4InvestorEducation&ProtectionFund(Note)UnpaidMatureddeposits 67.94 33.97Interestaccruedontheabove 19.81 6.�� 4351.48 3667.36

note-AmountsunderInvestorEducationandProtectionFundarenotduefordeposit.

Schedule ‘M’

provisions(Refernote7(b),7(c)&��(a)onScheduleVIIIandnote�onScheduleIX)Provision for Leave Salary 108.17 �06.�4ProvisionforPension 561.61 557.99ProvisionforGratutity 39.99 �33.35ProvisionforTax[NetofPrepaidTax 98.62 49�.95Rs. 632.56 Lacs (Previous Year Rs.1404.38 Lacs)]ProvisionforProposedDividend - �,4�9.98ProvisionforCorporateDividendTax - �4�.33 808.39 �95�.74


Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 (Rs. In Lacs) Year ended Year ended Schedule ‘I’ 30.09.2010 30.09.2009(Refernote5onScheduleVIII)GRoSS SALeSugar 29745.61 37566.�8Molasses 3327.78 ��8�.60By-Products 693.39 �06.99 33766.78 39855.87

Schedule ‘II’(Refernote5onScheduleVIII)oTHeR IncoMeInterest- OnGovt.Securities 0.01 0.0�- OnFixedDeposit&others(IncludingTDS 194.65 48.59 ofRs.�0.85lacs)DividendfromMutualFund 52.39 ��.30DividendfromNonTradeInvestment 17.23 -Sundryunclaimedbalanceswrittenback 58.28 3�.45Profit on sale of fixed assets 1.86 5.78Reimb.ofinterestonexcisedutytermloans 489.78 -MiscellaneousIncomeincludingclaims 324.77 4�6.98 1138.97 5�6.��

Schedule’III’IncReASe/(decReASe) In STocK offInISHed GoodS And pARTLY pRoceSSed SuGAR(Refernote4onScheduleVIII)

closing StockFinishedStock 7164.91 ��89.�9PartlyProcessedSugar 25.77 ��.07 7190.68 �3�0.�6Less: opening Stock:FinishedStock 2289.19 �3733.57PartlyProcessedSugar 21.07 �4.34 2310.26 �3747.9�Increase/(Decrease)instockofFinishedGoods&PartlyProcessedSugar 4880.42 (��437.65)


Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 (Rs. In Lacs) Year ended Year ended Schedule ‘IV’ 30.09.2010 30.09.2009MAnufAcTuRInG eXpenSeS Caneconsumed 30846.60 �3��8.9�RawSugarPurchased 708.83 -ConsumptionofStoresandSpares 1192.37 8�5.47Power&Fuel 222.88 �5�.44Repairsto:- PlantandMachinery 128.00 �6�.56- Building 51.07 4�.66Insurance 37.53 �9.53Excisedutydifferenceonopening&closingstockofFinishedGoods 144.68 (950.79) 33331.96 �3377.79

Schedule ‘V’

eMpLoYee coST (Refernote7onScheduleVIIIandnote�onScheduleIX)Salaries,WagesandBonus 2363.65 ��40.�4ContributiontoProvidentFundandotherFunds 155.81 �75.63WorkmenandStaffWelfareExpenses 99.32 83.33 2618.78 �499.�0

Schedule ‘VI’

AdMInISTRATIon And SeLLInG eXpenSeSRent 16.12 4�.94RatesandTaxes 18.46 38.04Donation 14.75 �0.40Office and Miscellaneous Expenses 318.13 343.55AuditorsRemuneration 3.50 3.50Loss on Sale of Store 9.18 8.09Loss on Assets sold and/or written off 48.94 �0.43Loss on stores written off - �4.�0CommissiontoSellingAgentsandothers 44.19 8�.77Packing,ForwardingandTransportationExpenses 129.24 �4�.�7BadDebtsWrittenOff[ProvisionforBadDebts 0.32 79.67CurrentyearNil(PreviousyearRs.79.�3lacs)]RebateandDiscount 0.57 �.8� 603.40 807.67


Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010 (Rs. In Lacs) Year ended Year ended Schedule’VII’ 30.09.2010 30.09.2009InTeReST & fInAncIAL cHARGeS(Refernote�0onScheduleVIII)Fixed Loan 362.42 476.65Other Loans 593.86 76�.04

956.28 ��37.69


Schedules Annexed to and forming part of the statement of accounts for the year ended 30th September, 2010Schedule `VIII’

Significant Accounting Policies1) (a) Basis of Accounting

TheFinancialStatementsoftheCompanyarepreparedunderthehistoricalcostconvention,andinaccordancewith applicable Accounting Standards notified by Central Government under the Companies (Accounting Standards)Rules,�006.ForrecognitionofIncomeandExpenditure,accrualbasisofaccountingisfollowed.

(b) use of estimates

The preparation of financial statements requires use of estimates and assumptions to be made that affect the reported amount of assets, liabilities and disclosure of contingent liability on the date of financial statements andthereportedamountsofrevenueandexpensesduringthereportingperiod.Differencebetweenactualresultsandestimatesarerecognizedintheperiodinwhichtheresultsareknown/materialized.

2) fixed Assets

Fixedassetsarestatedattheircostlessaccumulateddepreciation. Thecostofanassetcomprisesa)itspurchasepriceandb)anydirectlyattributablecostofbringingtheasset

toworkingconditionforitsintendeduse. The fixed assets acquired by virtue of slump sale agreement with The Saraswati Industrial Syndicate Limited

havebeenvaluedbycompetentvaluers. Capitalsparesdirectlyattributabletotheassetsaredepreciatedwiththecostoftheassets.

3) depreciation

Depreciation is provided on fixed assets at the rates prescribed in Schedule XIV of the Companies Act, 1956 asperthewrittendownvaluemethodexceptinrespectofcertainPlant&MachinerywhicharedepreciatedasperthestraightlinemethodattheratesandinthemannerprescribedinScheduleXIVoftheCompaniesAct,�956.

Assets costing less than Rs. 5,000/- are fully depreciated in the year of their acquisition.

4) Inventories

Inventoriesarevaluedatlowerofcostornetrealisablevalue.Costforvariousitemsofinventoryisdeterminedasunder:

RawMaterials : Costofpurchaseincludingincidentalexpenses WIP : Atrawmaterialcostincludingproportionateproductionoverheads FinishedGoods : Atrawmaterialcostincludingproportionateproductionoverheads Componentsandstores&spares : Costofpurchaseincludingincidentalexpenses Finishedstockofmolassesisvaluedataveragenetrealisablevalue.5) Revenue Recognition

Revenueisrecognisedatthetimeofdespatchofgoodsfromthefactory. InsuranceClaims,exportincentives,escalationandclaimsonaccountofbufferstocketc.areaccountedfor

asandwhentheamountsrecoverablecanbereasonablydeterminedasbeingacceptabletotheconcernedauthorities/parties.


6) Investments

Long-term investments are valued at cost. Provision is made for diminution in value, other than temporary.

7) Employee Benefits

As per AS 15(revised) notified by Central Government under the Companies (Accounting Standards) Rules, 2006, the provision for employee benefits is charged on accrual basis as under:

a) provident fund

Contribution to provident fund is made as per defined contribution plan through a Trust managed by the Group and charged to Profit & Loss account.

b) Gratuity & Leave encashment

Provision for liability on account of gratuity & leave encashment being defined benefit plan, is determined as per actuarial valuation and charged to Profit & Loss Account. The group operates a Gratuity Fund Trust , which has taken Group gratuity cum life assurance policy with the LIC of India foralltheemployees.

c) pension

Provisionforliabilityonaccountofpensionpayabletoemployeescoveredundercompany’spensionschemeismadeonaccrualbasis.

8) foreign currency Transactions

Transactionsinforeigncurrencyarerecordedattheexchangerateprevailingonthedateoftransaction.

Currentassetsandcurrentliabilitiesrecoverable/payableinforeigncurrencyarerestatedattheexchangerate prevailing at the year end and the overall net gain/loss is adjusted in the Profit and Loss Account. In case offorwardexchangecontracts,thedifferencebetweenforwardexchangerate&exchangerateatthedateoftransactionaretreatedasincomeorexpensesovertheperiodofthecontract.

9) Research and development

Revenue expenditure on Research and Development (R&D) is charged to Profit & Loss Account in the year in which it is incurred. Capital expenditure on R & D is shown as addition to fixed assets.

10) Borrowing costs

Borrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurredexceptthoseattributableto acquisition, construction or production of qualifying asset which are capitalized as part of that asset.

11) Taxation

TaxExpense(TaxSaving)istheaggregateofcurrentyeartaxanddeferredtaxcharged(orcredited)totheProfit and Loss Account for the year in accordance with Accounting Standard-22 – “Accounting for Taxes on Income” notified by Central Government under the Companies (Accounting Standards) Rules, 2006 and measuredatthetaxratesthathavebeenenactedorsubstantivelyenactedbytheBalanceSheetdate.

a) current Year charge

Provision for taxation for the Company’s financial year ended September 30th, 2010 has been determined basedontheresultsforthesixmonthsendedMarch,�0�0(assessmentyear�0�0-��)andforthesixmonthsendedSeptember�0�0(assessmentyear�0��-�0��).Theultimateliabilityfortheassessmentyear�0��-��howeverwillbedeterminedonthetotalincomeoftheCompanyfortheyearendingMarch3�,�0��.


The provision for taxation is based on assessable profits of the Company as determined under the IncomeTaxAct,�96�.TheCompanyalsoprovidesforsuchdisallowancesmadeoncompletionofassessmentspendingappeals,asconsideredappropriate,dependingonthemeritsofeachcase.

b) deferred Tax

TheCompanyprovidesfordeferredtaxusingtheliabilitymethodbasedonthetaxeffectoftimingdifferences resulting from the recognition of items in the financial statements and in estimating its currentincometaxprovision.

12) Intangible Assets

IntangibleAssetsarerecognisedonthebasisofrecognitioncriteriaassetoutinAccountingStandardAS–�6‘Intangible Assets’ notified by Central Government under the Companies (Accounting Standards) Rules, 2006.

13) Impairment of Assets:




Impairmentlossisrecognisedwhenthecarryingamountofanyassetexceedsitsrecoverableamount.



b) In the case of a cash generating unit (a group of assets that generates identified independent cash flows), at the higher of the cash generating unit’s net selling price and the value in use.

Value in use is determined as the present value of estimated future cash flows from the continuing use of an assetandfromitsdisposalattheendofitsusefullife.

14) provisions, contingent Liabilities and contingent Assets

Provisionsarerecognisedforliabilitiesthatcanbemeasuredbyusingasubstantialdegreeofestimation,if





a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.


ContingentAssetsareneitherrecognisednordisclosed.

Provisions,ContingentliabilitiesandContingentassetsarereviewedateachBalanceSheetdate.


Schedule Annexed to and forming part of the Accounts for the year ended 30th September, 2010ScHeduLe – IX

noTeS To AccounTS

1. (a) Contingent Liability not provided for in respect of :

(i) Employeesforwages Rs.5��.06lacs(PreviousyearRs.7.06lacs)

(ii) Others Rs.�3.08lacs(PreviousyearRs.�3.08lacs)

[(IncludingCenvatreversalliabilitiesofRs.9.4�lacs(PreviousyearRs.9.4�lacs)]

(iii) Liability due to Local Area Development Tax (LADT) Rs. 86.06 lacs

(b) Guarantees furnished by company’s bankers for Rs.569.83 lacs (Previous year Rs.��4.�0 lacs) andcounterindemnityfurnishedbythecompanytobankersforthesameamount.

(c) GuaranteesgivenbycompanytothebankagainsttheloanstakenbythecanegrowersRs.Nil(ascertified by the management) (previous year Rs.596.64 lacs)

2. Employee Benefits:

The disclosures required by Accounting Standard AS-15 “Employee Benefits” as notified by Central GovernmentunderCompanies(AccountingStandards)Rules,�006asunder:

Defined Contribution Plan

The employer contribution to Provident Fund is Rs.88.04 lacs (Previous Year Rs.7�.65 lacs), the fund isadministeredbyTrustmanagedbytheCompanyandcontributiontoRPFCasFamilyPensionFundRs.76.�7lacs (Previous Year Rs.67.82 lacs). The contributions are charged to Profit & Loss account.

Defined Benefit Plan

Theliabilityforemployeegratuityandleaveencashmentisdeterminedonactuarialvaluationusingprojectedunitcreditmethod.Theobligationsareasunder:-

(a) change in present value of obligation (Rs. in Lacs)

particulars Gratuity Leave encashment (unfunded)

2009-10 2008-09 2007-08 2009-10 2008-09 2007-08Presentvalueofobligationatthebeginningoftheperiod

884.60

778.09

79�.�6

�06.�4

90.�5

80.77

Acquisition cost - - - - - -Interestcost 69.3� 66.3� 64.�3 7.86 6.99 6.37Currentservicecost 38.73 38.�3 35.57 8.45 7.95 7.34Benefits paid (�0�.�5) (89.0�) (58.58) (��.39) (6.00) (�4.39)Actuarial(gain)/lossonobligation (37.88) 9�.07 (55.30) (�.89) 6.95 �0.�6Presentvalueofobligationatendofperiod 853.5� 884.60 778.09 �08.�7 �06.�4 90.�5


(b) change in fair value of plan assets

(Rs. in Lacs)

particulars Gratuity Leave encashment 2009-10 2008-09 2007-08 2009-10 2008-09 2007-08Fairvalueofplanassetsatthebeginningoftheperiod

75�.�6 684.96 6�9.40 - - -

Acquisition adjustment - - - - - -Expectedreturnonplanassets 77.�4 7�.75 65.00 - - -Contributions 93.�5 9�.35 54.46 - - -Benefits paid (�0�.�5) (89.0�) (58.58) - - -Actuarialgain/(loss)onplanassets (6.87) (7.79) (5.3�) - - -Fairvalueofplanassetsattheendoftheperiod

8�3.53 75�.�6 684.96 - - -

(c ) Amount to be recognised in Balance Sheet

Presentvalueofobligationasatendoftheperiod

853.5�

884.60

778.09

�08.�7

�06.�4

90.�5

Fairvalueofplanassetsasattheendoftheperiod

8�3.53

75�.�5

684.96

-

-

-

NetAsset/(liability)recognisedinBalanceSheet

(39.99)

(�33.35)

(93.�3)

(�08.�7)

(�06.�4)

(90.�5)

(d) Expenses recognised in the statement of Profit & Loss Account.

Currentservicecost 38.73 38.�3 35.57 8.45 7.95 7.34Interestcost 69.3� 66.3� 64.�3 7.86 6.99 6.37Expectedreturnonplanassets (77.�4) (7�.75) - - - -Net actuarial (gain)/loss recognised in Profit/Loss (3�.0�) 98.86 (55.30) (�.89) 6.95 �0.�6Expenses recognised in the statement of Profit & Loss (0.��) �3�.56 44.5� �4.4� ��.89 33.87

3. EstimatedamountofcontractsremainingtobeexecutedonCapitalAccountandnotprovidedfor(Netofadvances)Rs.387.5�lacs(PreviousyearRs.5.83lacs).

4. a) The case challenging the Levy Sugar Price Fixation for the season 1980-81 to 1999-2000 was decided in favour of the Company. The Company requested the Central Government to refix the levy sugar pricesasdirectedbytheCourt.TheCentralGovernmenthassinceamendedtheEssentialCommoditiesAct nullifying the Court Judgement. The Company has challenged the amendment as malafide in the DelhiHighCourt.SimilarchallengehasbeenmadeintheSupremeCourtbyanothersugarfactory.Accordingly, in terms of legal advice, the Company has filed petition in the Supreme Court for transfer ofourpetitionfromtheDelhiHighCourttotheSupremeCourt.

b) InviewofabolitionofStatutoryMinimumPriceofSugarcane,theCompanyhaschangedthemethodofvaluationofFinishedStockofsugarbytakingintoaccountactualsugarcanepricepaidduringtheyear,inplaceofStatutoryMinimumPricewhichwasthebasisofrawmaterialcostfollowedtilllastaccountingyear.Impactofaccountingpolicychangeis indeterminableintheabsenceofStatutoryMinimumPrice.

5. The Company and other assesses including Indian Oil Corporation challenged the levy of Local Area Development Tax under The Haryana Local Area Development Tax Act, 2000 and the Haryana Entry of


Goods Into The Local Areas Act, 2008 in the High Court of Punjab & Haryana. The High Court decided the matter in company’s favour, hence no liability has been accounted for. However subsequently the Supreme Court has through an interim order, on the appeal of the State Government directed all the assessee to file the returns under the Local Area Development Tax Act. The company has since filed the returns.

6. TheCompanyestimatesthedeferredtaxcharge/(credit)fortheyearusingtheapplicabletaxratebasedonthe impact of timing difference between items in the financial statements and the estimated taxable income forthecurrentyear.ThemovementofprovisionforDeferredTaxisgivenbelow:-

(Rs. in lacs)

As at october 1,

2008

credit/ (charge) during

the year

opening balance

as at october 1, 2009

credit/ (charge) during

the year

closing Balance

as at 30th Sept, 2010.

Depreciation (�5�7.04) 63.95 (�463.09) �58.�� (�304.88)

OtherTimingDifferences �79.8� (�53.58) �6.�4 83.�� 09.46

Accumulated Tax Losses 430.�9 (394.93) 35.�6 (35.�6) -

Netdeferredtaxliability (8�7.03) (584.56) (�40�.59) �06.�7 (��95.4�)

7. ThecompanyhasnotreceivedanyintimationfromsuppliersregardingtheirstatusundertheMicro,SmallandMediumEnterprises(Development)Act,�006andhencedisclosures,ifany,relatingtotheamountunpaid as at the year end together with interest paid and or payable as required under the said Act have notbeengiven.

8. PurchaseandSaleinUnitsofMutualFundsfortheperiod�-�0-�009to30-09-�0�0

particulars unit opening Balance

Additional/ Reinvestment

Sale closing Balance

Value (Rs. In lacs)

SBISHF-UltraShortTermFund.

Units 6093049.�0(NIL)

4006�.98(�0090890.�6)

6�33��.08(399784�.�6)

NIL (6093049.�0)

NIL (609.63)

Reliance Liquid Fund TreasuryPlan

Units NIL (NIL)

96497�6.97(3�8063.�5)

96497�6.97(3�8063.�5)

NIL (NIL)

NIL (NIL)

RelianceMoneyManagerFund–RetailOption

Units 5054.0�(NIL)

46.37(5054.0�)

5�00.38(NIL)

NIL(5054.0�)

NIL (50.59)

RelianceMoneyManager-InstitutionOption

Units �609��.44(NIL)

�08505.73(�609��.44)

4694�7.�7(NIL)

NIL(�609��.44)

NIL(�6��.08)

Kotak Floater Long Term

Units NIL(NIL)

�4�39954.�3(NIL)

�4�39954.�3(NIL)

NIL(NIL)

NIL(NIL)

Kotak Liquid Institutional

Units NIL(NIL)

7�56�03.�4(NIL)

7�56�03.�4(NIL)

NIL(NIL)

NIL(NIL)

Previous year figures are indicated in parenthesis

9. Segment Reporting

TheCompanyhasonereportablesegmentofsugarinaccordancewiththeprinciplesoutlinedinAccountingStandard AS-17 ‘Segment Reporting’ notified by Central Government under the Companies (Accounting Standards)Rules,�006,hencesegmentinformationisnotapplicable.


�0. Related party transactions

A) Natureofrelatedpartiesanddescriptionofrelationship

nature of relationship names Holding Company The Saraswati Industrial Syndicate Ltd. Entities over which Directors and Yamuna Syndicate Ltd. their relatives can exercise ISGEC Covema Ltd. significant influence ISGEC Exports Ltd. KeyManagementPersonnel Mr.AdityaPuri(ManagingDirector) RelativesofKeyManagement Mr.RanjitPuri,(Chairman&FatherofMr.AdityaPuri) Personnel Mrs.NinaPuri(MotherofMr.AdityaPuri) Mrs.TanupriyaPuri(Wifeof.Mr.AdityaPuri)

B) Detailsoftransactionswithrelatedpartiesare: (Rs.inlacs)

S.No. NatureofTransaction HoldingCompany

Associate Entitiesoverwhichkey

managementpersonnel

canexercisesignificant influence

KeyManagement

Personnel

RelativeofKey

ManagementPersonnel

Total

� � 3 4 5 6 7 8

I Saleofgoods �7.0�(4�.86)

-(-)

-(-)

-(-)

-(-)

�7.0�(4�.86)

II Purchaseofgoods 306.68(3�.38)

-(-)

�88.83(�55.7�)

�.36(0.90)

�.96(0.88)

599.83(�89.88)

III AdvancegivenforthePurchase of Land

-(-)

-(-)

�304.05(�304.05)

-(-)

-(-)

�304.05(�304.05)

IV Commissionpaid -(-)

-(-)

6.�9(9.�6)

-(-)

-(-)

6.�9(9.�6)

V ServicesReceived 4.96(��.83)

-(-)

9.37(5.54)

-(-)

-(-)

�4.33(�8.37)

VI Servicesrendered 0.03(�.45)

-(-)

-(-)

-(-)

-(-)

0.03(�.45)

VII Interestpaid/Payable �3�.3�(60.03)

-(-)

4.98(3.55)

-(-)

-(-)

�36.30(63.68)

VIII Amt.Receivableatyearend

�4.40(��.34)

-(-)

-(-)

-(-)

-(-)

�4.40(��.34)

IX Amt.Payableasatyearend

�335.3�(360.49)

-(-)

88.�0(83.8�)

-(-)

-(-)

�4�3.5�(444.3�)

Previous year figures are indicated in parenthesis


��. InaccordancewithAccountingStandard(AS-�0)on‘EarningPerShare’,thefollowingtablereconcilesthenumeratoranddenominatorusedtocalculateBasicandDilutedearningperShare:

2009-10 2008-09a. Profit/Loss available to Equity Shareholders,beforedeferredtax,(Rs.Inlacs) -4�4.�9 5903.6�b. Weighted Average number of Equity Shares 70,99,900 70,99,900c. Nominal value of Equity Shares (in Rs.) �0 �0d. BasicandDilutedEarningPerShare[(a)/(b)](inRs.) -5.98 83.�5

(Rs.inlacs)

�009-�0 �008-09��. ManagerialRemuneration: TotheManagingDirector(s) Nil Nil ToOtherDirectors: AsCommission - - AsSittingFee 0.45 0.55 0.45 0.55 TotalManagerialRemuneration 0.45 0.55 Note: Since no commission is paid to managerial personnel, computation of profits under section 349 of the

Actisnotfurnished.

�3. RevenueexpenditureonResearch&Development: (Rs.inlacs) �009-�0 �008-09 Salary 6.07 6.65 ContributiontoProvidentFund 0.36 0.33 Total: 6.43 6.98

14. Licensed and Installed Capacity and Actual Production/Sales

Licensed Installed 2009-10 2008-09 2009-10 2008-09 NA NA �3,000(TCD)�3,000(TCD) 2009-10 2008-09 Qty Value Qty Valuein (in Qtls.) (Lacs Rs.) (in Qtls.) (Lacs Rs.) (a) CaneCrushed ��8��4�6 30846.60 6836938 �3��8.9� (b) RawSugarpurchasedandprocessed �5840 708.83 - - (c) ActualProduction ��08�* 6799�5 (d) SugarSold �070800 �9745.6� �677956 37566.�8 (e) OpeningandClosingstockofSugar: OpeningStock ��9500 �990.38 ��754� �3634.07 ClosingStock �7978� 6300.8� ��9500 �990.38Notes:Sugarsentforremeltingoutofopeningstockandproductionthereofhavenotbeenconsidered. *Includes 25321 bags of sugar processed from raw sugar. (Previous year – NIL)


2009-10 2008-09

Qty Value Qty Value (in Qtls.) (Rs. In Lacs ) (in Qtls.) (Rs. In Lacs)

(f) MolassesProduction 63��73 - 3�3763 - (g) MolassesSold 609306.45 33�7.78 �99988.70 ��8�.60 (h) OpeningandClosingStockofMolasses: OpeningStock 38444.80 �98.8� �4670.50 99.50 ClosingStock 604��.35 �8�.88 38444.80 �98.8�

�5. Value of imported/indigenous raw materials, spare parts components & stores consumed:

2009-10 2008-09 2009-10 2008-09

Rs. In Lacs (%) (% )

Rawmaterial:

Imported–RawSugar 708.83 Nil Nil Nil

Indigenous-sugarcane 30846.60 �3��8.9� �00 �00

Sparesparts,components&Stores:

Imported - - - -

Indigenous �300.87 886.64 �00 �00

�6. expenditure in foreign currency: (Value Rs. in lacs)

2009-10 �008-09

Royalty - -

Know-how(drawings) - -

Travellingandothermatters - -

�7. Value of imports on cIf basis (Value Rs. In lacs):

Sparepartsandcomponents(inRs.) - -

Capitalgoods �8.�7 �33.58

Others - -


cash flow Statement for the period ended 30.09.2010 Amount (Rs. In Lacs) Year ended Year ended 30.09.2010 30.09.2009 A. Cash flow from Operating activities:

Net (loss)/profit before tax but after exceptional/extraordinary items (279.29) 7,931.04

Adjustmentsfor:

Depreciation �,093.77 �,��4.�4

InterestExpense 466.50 �,�37.69

Interest/DividendIncome (�64.�8) (70.90)

(Profit)/Loss on Fixed Assets sold (Net) 47.08 14.65

(Profit)/Loss on Sale/Revaluation of store 9.18 32.29

Debts/AdvancesWrittenoff 0.3� 0.44

ProvisionforDoubtfulDebts (0.43) 79.�4


ProvisionforGratuity 0.5� �34.7�

Provision for Leave Encashment 33.59 36.06

PensionProvision �74.43 �56.�9

ProvisionforBonus 59.08 58.53

AnyothernoncashItem



- (INCREASE)/DECREASEinSundryDebtors �75.3� 7�7.58

- (INCREASE)/DECREASEinOtherReceivables (5��.�4) 78�.53

- (INCREASE)/DECREASEinInventories (4,886.00) ��,504.�0

- INCREASE/(DECREASE)inTradeandOtherPayables 404.69 (805.05)

cash generated from operations (3,535.95) 23,000.79

- Taxes(Paid)/Received(NetofTDS) (539.33) (�,534.48)

net cash from operating activities (4,075.28) 21,466.31

B. cash flow from Investing Activities

Purchase of fixed assets

Additionsduringtheperiod (503.39) (�,873.�0)

Proceeds from Sale of fixed assets 25.66 30.93

Sale/(Purchase)ofInvestments 3,�7�.30 (3,�7�.�0)

Interest/DividendReceived(Revenue) �86.60 40.�0

net cash used in investing activities 3,081.17 (5,074.27)


C. Cash flow from Financing activities:

Proceeds/(Repayment)fromSecuredloans (9�0.9�) (�3,864.4�)

Proceeds/(Repayment)ofunsecuredloans �,��.06 80.75

InterestPaid (484.��) (�,�65.38)

DividendPaid (�,4�9.98) -

CorporateDividendTaxPaid (�4�.33) -

Net cash used in financing activities (1,835.27) (14,949.04)

net Increase/(decrease) in cash & cash equivalents (2,829.38) 1,443.00


cash and cash equivalents as at 30.09.2010 745.11 3,574.49



Currentaccounts(dividendaccount) - -

BalancewithScheduledBanks 46�.�� 96.5�

FixedDeposits 50.�5 3,067.3�

Stamps in Franking Machine & deposit with Post Office 0.01 0.06

745.11 3,574.49notes : 1 The above Cash flow statement has been prepared under the indirect method setout in Accounting Standard

(AS) - 3 notified by Central Government as per Companies (Accounting Standards) Rules, 2006 � Figuresinbracketsindicatecashoutgo. 3 Previous period figures have been regrouped and recast wherever necessary to conform to the current

period classification. 4 Following non cash transactions have not been considered in the cash flow statement. - Taxdeductedatsource(onincome) - Others

As per our report of even date





Balance Sheet Abstract and Company’s General Business ProfileI. Registration details RegistrationNo. 05-0345�9 StateCode 05 BalanceSheetDate 30/09/�0�0II. capital Raised during the year (Amount in Rs.Lacs) PublicIssue RightsIssue NIL NIL BonusShares PrivatePlacement NIL NILIII. position of Mobilisation and deployment of funds (Amount in Rs.Lacs) Total Liabilities Total Assets �9,7�7.65 �9,7�7.65 SourcesofFunds Paid-upCapital Reserve&Surplus 709.99 ��,46�.50 Secured Loans Unsecured Loans �,�77.38 3,073.36 Deferred Tax Liability �,�95.4� ApplicationofFunds NetFixedAssets Investments �4,089.�6 305.35 NetCurrentAssets 5,3�3.�4IV. performance of company (Amount in Rs.Lacs) Turnover TotalExpenditure 33,444.48 33,7�3.77 Profit/(Loss) Before Tax Profit/(Loss) After Tax (�79.�9) (��8.��) EarningperShareinRs. RateofDividend (5.98) NILV. Generic name of Three principal product/Services of company (as per monetary terms) ItemCodeNo.(ITCCode) �70�.�� ProductDescription Sugar




ISGec engineering & projects Limited�68

AnnuAL RepoRT 2009-2010BoARd of dIRecToRSdirectors Mr.RanjitPuri

Mr.AdityaPuri

Mr.S.K.Khorana

Bankers StateBankofPatiala

Registered Office ISGECBuilding

RadaurSaharanpurRoad

Yumunanagar-�3500�(Haryana)

ISGec engineering & projects Limited �69

dIRecToRS’ RepoRT To the Members,

YourDirectors’present theAnnualReport togetherwith theauditedstatementofaccounts for theperiodended30thSeptember�0�0.

1.0 fInAncIAL ReSuLTS

�.� Thereisnooperationduringtheyear.

2.0 eneRGY conSeRVATIon, TecHnoLoGY ABSoRpTIon, foReIGn eXcHAnGe eARnInGS And ouTGo

�.� Thecompanyhasnotconsumedenergyasthereisnooperationsduringtheyear.

�.� Therehasbeennotechnologyabsorption.

�.3 ThereisnoForeignExchangeearningsandoutgoduringtheyear.

3.0 fIXed depoSITS

3.1 No fixed deposit from the Public was accepted during the year.

4.0 AudIToRS

4.� The Auditors, P.G. Chawla & Co. Chartered Accountants are retiring at the forthcoming Annual GeneralMeetingandtheyhaveofferedthemselvesforreappointment.

5.0 dIRecToRS’ ReSponSIBILITY STATeMenT undeR SecTIon 217 (2AA) of THe coMpAnIeS AcT 1956.

TheDirectors’state:

5.� That in the preparation of the annual accounts for the year ended 30th September, �0�0, the applicableAccountingStandardshavebeenfollowedalongwithproperexplanationrelatingtomaterialdepartures.

5.� ThattheDirectorshaveselectedandappliedsuchaccountingpoliciesconsistently.

5.3 ThattheDirectorshavemadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueand fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of thecompanyforthatperiod.

5.4 That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records inaccordancewiththeprovisionoftheCompaniesActforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraudandotherirregularities;

5.5 ThattheDirectorshavepreparedtheannualaccountsonagoingconcernbasis.

BY THe oRdeR of THe BoARd

Place:Noida S. K Khorana Aditya puriDated:�7thNovember�0�0 Director Director


AudIToRS’ RepoRTToTheShareholders,ISGEC Engineering & Projects Limited.Yamunanagar,Haryana.

1. We have audited the attached Balance Sheet of ISGEC Engineering & Projects Ltd. as at 30th September, 2010 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.

�. WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedinIndia.Thosestandardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsarefreeofmaterialmisstatement.Anauditincludesexamining,ontestbasis,evidencesupportingthe amounts 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 statementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

3. As required by the Companies (Auditor’s Report) Order 2003 as amended by Companies (Auditor’s Report) (Amendment)Order�004(togetherthe‘order’)issuedbytheCentralgovernmentofIndiaintermsofsub-section(4A)ofsection��7oftheCompaniesAct,�956,weencloseintheAnnexureheretoastatementonthematters specified in paragraphs 4 and 5 of the said order.


(i) Wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit;

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appearsfromourexaminationofthosebooks.

(iii) TheBalanceSheetdealtwithbythisreportareinagreementwiththebooksofaccount;

(iv) Inouropinion,theBalanceSheetdealtwithbythisreportcomplywiththeaccountingstandardsreferredtoinsub-section(3C)ofsection��oftheCompaniesAct,�956;

(v) Onthebasisofwrittenrepresentationsreceivedfromthedirectors,ason30thSeptember,�0�0,andtakenon record by the Board of Directors, we report that none of the directors is disqualified as on 30th September,�0�0frombeingappointedasadirectorintermsofclause(g)ofsub-section(�)ofsection�74oftheCompaniesAct,�956;

(vi) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccounts give the information required by the Companies Act,1956,in the manner so required and give a trueandfairviewinconformitywiththeaccountingprinciplesacceptedinIndia:

a) InthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasat30thSeptember,�0�0.

b) In the case of the Profit & Loss Account,of the profit of the Company for the year ended on that date.

foR p.G.cHAWLA & co.CharteredAccountants

Place:Noida p.G.cHAWLADated:�7thNovember,�0�0 (Partner)

ISGec engineering & projects Limited �7�

AnneXuRe To AudIToR’S RepoRT(Referredtoinparagraph3ofourreportofevendate)

1. In respect of its fixed assets: N.A.

As explained to us, the Company has not acquired/sold any fixed assets during the period under audit.

�. Inrespectofitsinventories: N.A.

Therebeingnocommercialactivityduringtheperiod.

3. The Company has not granted any loans, secured or unsecured, to the Company or firm or other parties coveredintheregistermaintainedundersection30�oftheCompaniesAct,�956.

4. TheCompanyhasnottakenanyloans,securedorunsecured,grantedortakenbytheCompanyto/fromcompanies, firms or other parties covered in the register maintained under section 301 of the Companies Act, �956.

5. The Company has been registered on 22nd March 2007, the requirements of clause (x) of paragraph 4 of the orderisnotapplicable.

6. Inrespectoftransactionscoveredundersection30�oftheCompaniesAct,�956:

Inouropinionandaccordingtotheinformationandexplanationsgiventous,therehasnotbeenanytransactionduringtheperiodthatneedtobeenteredintheregistermaintainedundersection30�oftheCompaniesAct,�956andexceedingduringtheperiodtoRs.5,00,000ormoreinrespectofeachparty.

7. TheCompanyhasnotacceptedanydepositsfromthepublic.

8. Inouropinion, the internalauditsystemof theCompany iscommensuratewith itssizeandnatureof itsbusiness.

9. Asinformedtous,theprovisionsofSection�09(�)(d)oftheCompaniesAct,�956inregardtomaintenanceofcostrecordsdonotapplytothecompany.

�0. InrespectofStatutorydues:

a. According to the records of the Company, undisputed Statutory Dues including Provident Fund,InvestorEducationandProtectionfund,Employees’StateInsurance,Income-Tax,Sales–Tax,WealthTax,ServiceTax,CustomDuty,ExciseDuty,Cessandotherstatutorydueshavebeengenerallyregularlydepositedwiththeappropriateauthorities.Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectoftheaforesaiddueswereoutstandingasat30thSeptember,�0�0foraperiodofmorethansixmonthsfromthedateofbecomingpayable.

11. The Company has no accumulated losses and has not incurred any cash losses during the financial period covered by our audit or in the immediately preceding financial period.

��. Basedonourauditproceduresandaccordingtotheinformationandexplanationsgiventous,weareoftheopinion that the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

�3. Inouropinionandaccordingtotheinformationandexplanationsgiventous,noloansandadvancehavebeengrantedby theCompanyon thebasisof securitybywayofpledgeof shares,debenturesandothersecurities.

14. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, clause 4 (xiii) of the Companies (Auditor’s Report ) Order �003 as amended by Companies (Auditor’s Report)(Amendment)Order�004(togetherthe‘order’)andisnotapplicabletotheCompany.

�5. TheCompanydoesnotdealortradeinshares,securities,debenturesandotherinvestments.

ISGec engineering & projects Limited�7�

16. The Company has not given guarantees for loans taken by others from banks or financial institutions.

�7. TheCompanyhasnotraisedanynewloanduringtheperiod.

�8. Accordingto the informationandexplanationsgiventousandonanoverallexaminationsof theBalanceSheetoftheCompany,weareoftheopinionthattheCompanyhasnotutilisedanyshorttermsourcestowardsrepayment of long -term borrowings and/or acquisition of fixed assets.

�9. Duringtheperiod,theCompanyhasnotmadeanypreferentialallotmentofsharestopartiesandcompaniescoveredintheregistermaintainedunderSection30�oftheCompaniesAct,�956.

�0. SincetherearenoDebenturesissuedbytheCompany,creationofsecuritiesinrespectofdebenturesissuedisnotapplicable.

��. TheCompanyhasnotraisedanymoneybywayofpublicissueduringtheperiod.

��. Inouropinionandaccordingtotheinformationandexplanationsgiventous,nofraudonorbytheCompanyhas been noticed or reported during the period , that causes the financial statements to be materially misstated.

foR p.G.cHAWLA & co.CharteredAccountants

Place:Noida p.G.cHAWLADated:�7thNovember,�0�0 (Partner)


BALAnce SHeeT as at 30th September, 2010 FiguresinRupees As at Asat 30.09.2010 30.09.�009SouRceS of fundSShareholders’ funds Share capital Authorised: 1,000,000 equity shares of Rs.10/- each 10,000,000 �0,000,000 Issued, Subscribed and paid up: 50,000 equity shares of Rs.10 each fully paid 500,000 500,000 Reserve & Surplus Profit & Loss A/c 18,463 �7,66� current Liabilities & provisions: ExpensePayable 5,500 5,500 ProvisionForTaxation 360 5,694 Total 524,323 5�8,856 AppLIcATIon of fundS Loans & advances Interest accrued on fixed deposits 2,058 �,058 TDSRecoverable 2,263 7,55� cash & bank balances: Balancewithscheduledbanks InCurrentAccount 38,812 38,056 InDepositAccount 280,000 318,812 �80,000 3�8,056 Miscellaneous expenditure (totheextentnotwrittenofforadjusted) PreliminaryExpenses 183,500 �83,500 Pre-OperativeExpenses 17,690 201,190 �7,690 �0�,�90 Total 524,323 5�8,856

Significant accounting policies and notes on accounts annexed thereto form an integral part of accounts

Asperourreport for ISGec engineering & projects Ltd.ofevendateattached

for p.G.chawla & co.CharteredAccountants

p.G.chawla(Partner) Place:Noida S. K. Khorana Aditya puriDate:�7thNovember,�0�0 Director Director


pRofIT And LoSS AccounT as for the year ended 30th September, 2010 FiguresinRupees Year ended Yearended 30.09.2010 30.09.�009IncoMe

InterestonFixedDeposit ��,3�7 �4,477

eXpendITuRe

ProfessionalExpenses 9,500 -

AuditorsRemuneration 5,500 5,500

FilingFee 4,6�0 -

BankCharges 556 550

TotalExpenses �0,�66 6,050

Profit/(Loss) for the year 1,161 18,427

Provisionfortax 360 5,694

Profit/(Loss) after tax 801 12,733

Balance of Profit & Loss Account

broughtforwardfromlastyear �7,66� 4,9�9

BalancecarriedtoBalanceSheet �8,463 �7,66�

EarningPerShare 0.0� 0.�5

Significant accounting policies and notes on accounts annexed thereto form an integral part of accounts

Asperourreport for ISGec engineering & projects Ltd.ofevendateattached

for p.G.chawla & co.CharteredAccountants

p.G.chawla(Partner) Place:Noida S. K. Khorana Aditya puriDated:�7thNovember,�0�0 Director Director


noTeS on AccounTS And SIGnIfIcAnT AccounTInG poLIcIeS AnneXed To And foRMInG InTeGRAL pART of THe fInAncIAL STATeMenT AS on 30th SepTeMBeR, 2010A). SIGnIfIcAnT AccounTInG poLIcIeS (i) Basis of Accounting The financial statements of the company have been prepared under historical cost convention in accordance

withthegenerallyacceptedaccountingprinciplesinaccordancewithapplicableAccountingStandardsissuedbytheInstituteofCharteredaccountantsofIndiasubjecttotheprovisionsoftheCompaniesAct,�956,andinaccordancesubjecttowhatisstatedhereinbelow.TheCompanyfollowsmercantilesystemofaccounting.

(ii) Revenue Recognition Interestincomeisaccountedforonaccrualbasis. (iii) preliminary & pre-operative exp. Preliminary Exp. and Pre operative Exp. Incurred prior to the commencement of business would be

writtenoff/capitalisedafterthestartofcommercialoperations.B). noTeS on AccounTS. i) Contingent Liability not provided for is Nil. ii) Previous year figures have been regrouped/rearranged wherever required to make them comparable

with current year figures in case of Balance Sheet of the company. However in case of Profit & Loss account this being, the first year previous year figures are not applicable.

iii) Third Party balances in case of Current Assets and Current Liabilities are subject to confirmation by the party. iv) Since the Company has not yet started Commercial Operations, information regarding Licensed Capacity,

Installed Capacity and quantitative details are not applicable. v) Asregardsparagraphs�5-�8ofAS-��,noprovisionfordeferredtaxationhasbeenmade inaccounts

as there is no certainty that sufficient future taxable income will be available during the set-off period, againstwhichdeferredtaxassetavailabletothecompanycanberealized.

vi) TherewasnoForeignexchangeearningsandoutgo. vii) The particulars of employees as required in terms of section 217(2A) of the Companies Act, 1956 are NIL. viii) Since there are no employees in the company, no provision for retirement benefits have been made. ix) Onthebasisofinformationavailablewiththecompany,therewerenoamountsoverdueandremaining

unpaidtosmallscaleand/orancillaryindustrialsuppliersonaccountofprincipaland/orinterestasatcloseoftheperiod.

x) OnthebasisofinformationavailablewiththecompanyastowhetheranenterpriseisaMicro/SmallenterpriseundertheMSMEDAct,�006therewasnoamountremainingunpaidason30thSept�0�0ordelayedinpaymentduringtheyearbeyondtheagreedcreditperiod.Hencenointerestisdueorpaidtoanysuchenterprise.

xi) Duringtheyear,notransactionhasbeenmadewiththerelatedparty.Asperourreportofevendateattached

for p.G.chawla & co. for ISGec engineering & projects Ltd.CharteredAccountants

p.G.chawla(Partner) Place:Noida S. K. Khorana Aditya puriDated:�7thNovember,�0�0 Director Director


Balance Sheet Abstract and Company’s General Business ProfileI. Registration details

Registration No. U29248HR2007PLC036695 State Code 05

BalanceSheetDate 30/09/�0�0

II. capital Raised during the year (Amount in Rs. Thousand) PublicIssue RightsIssue NIL NIL BonusShares PrivatePlacement NIL NIL

III. position of Mobilisation and deployment of funds (Amount in Rs. Thousand)

Total Liabilities Total Assets 5�4 5�4 SourcesofFunds Paid-upCapital Reserve&Surplus 500 �8 Secured Loans Unsecured Loans NIL NIL Current Liabilities 6 ApplicationofFunds NetFixedAssets Investments NIL NIL CurrentAssets Miscellaneousexpenditure 3�3 �0�

IV. performance of company (Amount in Rs. Thousand)

Turnover(GrossRevenue) TotalExpenditure �� 0 Profit Before Tax Profit After Tax � � EarningperShareinRs. RateofDividend 0.0� Nil

V. Generic name of Three principal product/Services of company (as per monetary terms)

NIL

for p.G.chawla & co. CharteredAccountants

p.G.chawla(Partner)

Place:Noida S. K. Khorana Aditya puriDated:�7thNovember,�0�0 Director Director

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