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Directors Report of Indian Acrylics Ltd.

Mar 31, 2015

Dear Members,

The Directors of your Company have pleasure in presenting the 28th Annual Report of the Company together with Audited Accounts for the financial year ending 31st March, 2015.

FINANCIAL HIGHLIGHTS

(Rs. in lacs)

PARTICULARS 2014-15 2013-14

Domestic Sales (Net of Excise) 34093 44094

Export Sales 20569 18639

Total Sales 54662 62733

Other operating Income 455 380

Total Income 55117 63113

Profit before i nterest & 679 4515 depreciation

Interest & other financial charges 1587 2387

Profit/ (Loss) before depreciation (908) 2128

Depreciation 847 975

Net Profit/(Loss) prior to Tax (1755) 1153

& Extra Ordinary Items Prior period adjustment - (21)

Extra Ordinary Item 257 -

Net Profit/ (Loss) available (1498) 1132 forappropriation

The Company has achieved production of 31136 MT and sale of 29838 MT Acrylic Fibre during the year under review as against 36121 MT and 36076 MT respectively during the previous year. The Sale and other incomes during the year were Rs. 55117 lacs as against Rs. 63113 Lacs.

Acrylic Fibre demand was variable, while export demand remained strong, the domestic demand suffered due to substantial increase in dumping of Acrylic Fibre.

Due to decline in overall sales, Gross profit before interest, depreciation and tax (GPBIDT) during the current year is also lower. The GPBIDT for the year under review is Rs. 679 Lacs as against Rs. 4515 Lacs during the previous year. The expenditure on interest and financial charges, are lower at Rs.1587 Lacs as compared to Rs. 2387 Lacs in previous year. After providing for depreciation, the Company suffered a loss of Rs.1755 Lacs. After Accounting for an exceptional income of Rs. 257 Lacs mainly on account of claim awarded to the Company for the land acquired by the government for national highway, the Company incurred a net loss during the year of '.1498 Lacs compared to net profit of '. 1132 Lacs during the previous year.

RESERVES

During the year, Company has exited from CDR system. In order to settle the recompense amount paid to the banks, Company has written back a sum of Rs.406.75 lac from Capital Reserves leaving a balance of '.1764.44 lacs. There is no change in Securities Premium Reserves and General Reserves during the year, which stand at '.39.23 lac and '.80.00 lac respectively.

RESEARCH AND DEVELOPMENT

The Company has an In-House R & D centre registered with the Ministry of Science & Technology, Govt. of India.

During the year, the Company has been able to add some more new products such as dyed yarns. This will help in growth of sales in the current year. The Company is also working for energy conservation and reduction in the fuel cost with the help of in-house R&D.

During the year under review, we have successfully upgraded our one boiler and work on upgrading another boiler is under process to save fuel cost.

The Company had started work on installation of 9500 worsted spindles for spinning of acrylic yarn at an estimated cost of '.35.40 crore during the year 2013-14. Out of this, work on 6600 Spindles has since been completed and production started during the year (2014-15). Work on remaining spindles is going on and will be completed in 2015-16.

FUTURE OUTLOOK

Significant new capacities of Acrylonitrile (main raw material) manufacturing have started commercial production in the Asian Region (China) during the year 2014-15, thereby balancing its availability. On the other hand some capacities of Acrylic fibre have been closed permanently in the Middle East (Egypt) recently. With dollar appreciating and this Acrylic Fibre Capacity closure in Egypt recently, our export to Middle East markets will gain advantage. The shifting of Acrylonitrile manufacturing from USA/European Union region to Asia will be continuing during this year (2015-16) also. These changes will be good for steady growth of Acrylic fibre Industry in this area.

Forum of Acrylic Fibre has taken up the issue of continuation of anti dumping duty with the Government on certain countries which are doing large scale dumping of fibre in Indian market and thus causing severe injury to the domestic industry. This is under consideration of the Govt. Authorities and shall help in saving domestic Industry from the adverse impact of dumping Softening of the commodity prices, alongwith above changes in the Industry structure will be good for improving the margins in Acrylic Fibre business.

FINANCIAL STATUS

There is no change in the issued and subscribed capital of '.13532.21 lacs. There are no equity shares with differential rights or sweat equity or ESOP or scheme of purchase of Company shares by employees or their trustrees.

DIVIDEND

As Company does not have any distributable profits computed under provisions of Companies Act, 2013, no dividend is being recommended.

FIXED DEPOSITS

The Company has not accepted any fixed deposits during the year under review.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY

There are no significant and material changes occurred subsequent to the close of the financial year to which the Financial Statements relate and upto the date of this report that would impact the going concern status of the Company and its future operations.

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE

During the year, your Directors have constituted a Corporate Social Responsibility and Governance Committee (CSR&G Committee) comprising Sh. R.K Garg as its Chairman Shri Dheeraj Garg and Shri A. S Chatha as other members.

The said Committee has been entrusted with the responsibility of formulating and recommending to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken within the framework of the CSR Policy and recommending the amount to be spent on CSR activities.

Since the Company does not have net profits in the financial year in accordance with Section 197/ 198 of the Companies Act, 2013, the Company is not required to undertake any activity under CSR Rules.

However, the Company has been voluntarily undertaking CSR activities such as for maintenance of district level library, maintenance of public parks at Distt. Headquarter, running a community kitchen for poor peoples and other social activities. Expenditure incurred on these during the year is '.11.18 lacs.

SUBSIDIARY COMPANY

There is no subsidiary Company reportable under Section 129(3) of the Companies Act, 2013.

CORPORATE GOVERNANCE REPORT- DISCLOSURE REQUIREMENTS

The Company is continuously taking steps to attain higher levels of transparency, accountability and equity in order to enhance customer satisfaction and stakeholders' value. The Company not only complies with the regulatory requirements but is also responsive to the stakeholders' as well as customers' needs. The Company already has an Audit Committee, a Stakeholder Relationship Committee and Nomination and Remuneration Committee duly constituted by the Board to look after various activities. The Corporate Governance practices followed by the Company are enclosed as Annexure to this report.

EXTRACT OF THE ANNUAL RETURN

The extract of the annual return as provided under Section 92(3) of the Act, in Form MGT-9, which forms part of the Board's report (Annexure-5)

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act, 2013, the Directors confirm that :

a. in the preparation of the annual accounts for the year ending 31st March, 2015, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. the Directors had prepared the annual accounts on a going concern basis; and

e. the Directors had laid down internal financial control to be followed by the Company and that such internal financial controls were adequate and were operating effectively.

f. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The internal control systems and processes of the Company cover operational efficiency, accuracy and promptness in financial reporting, compliance with laws and regulations and development of mature, disciplined and effective processes. The processes are also designed to meet the goals of cost, schedule, functionality and quality, thus resulting in higher levels of customer satisfaction.

DIRECTORS

A) Changes in Directors and Key Managerial Personnel

Since the last Annual General Meeting, following changes have taken place in the Board of Directors:

PSIDC nominated Shri Yogesh Kumar Goel, its Managing Director, as a Director and Chairman of the Company, in place of Shri Vikas Pratap effective from 05/06/2014 PNB nominated Shri Satish Kumar Dua, DGM and Circle Head of the Bank, as a Director in place of Shri Ashok Kumar Gupta effective from 14/08/2014.

Smt. Tejinder Kaur, IAS has been appointed as an Independent Director on the Board effective from 30/03/2015.

PSIDC, later, withdrew the nomination of Shri Yogesh Kumar Goel, as a Director and Chairman of the Company effective from 28/05/2015.

PSIDC nominated Shri S K Singla, its Deputy General Manager, as a Director of the Company, in place of Shri A K Mahajan effective from 28/05/2015

Your Directors place on record appreciation of the valuable guidance rendered by Shri Vikas Pratap, Shri Yogesh Kumar Goel, Shri A K Mahajan and Shri Ashok Kumar Gupta during their association with the Company.

Pursuant to the provisions of Section 149 of the Act, Shri M M Chopra, Shri B B Tandon and Shri A S Chatha were appointed as independent directors at the annual general meeting of the Company held on 29th September 2014. The terms and conditions of appointment of Independent Directors are as per Schedule IV of the Act. They have submitted a declaration that each of them meets the criteria of Independence as provided in Section 149(6) of the Act and there has been no change in the circumstance which could affect their status as Independent Director during the year.

As per the provisions of Companies Act, 2013, Shri Satish Kumar Dua, Director, retire by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment.

B ) Dec la ration by an Independent Director(s) and re- appointment. if any

A declaration by Independent Directors stating that he/ they meet the criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013 has been taken at the time of their appointment.

C) Formal Annual Evaluation of Board

The Board of Directors has carried out an annual evaluation of its own performance, Board committees and individual directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India ("SEBI") under Clause 49 of the Listing Agreements ("Clause 49").

The performance of the Board was evaluated by the Board after seeking inputs from all the directors on the basis of the criteria such as the Board composition and structure, effectiveness of board processes, information and functioning, etc.

The performance of the committees was evaluated by the Board after seeking inputs from the committee members on the basis of the criteria such as composition of committees, effectiveness of committee meetings, etc.

The Board and the Nomination and Remuneration Committee ("NRC") reviewed the performance of the individual directors on the basis of the criteria such as the contribution of the individual director to the Board and committee meetings like preparedness on the issue to be discussed, meaningful and constructive contribution and inputs in meetings etc. In addition, the Chairman was also evaluated on the key aspects of his role.

In a separate meeting of Independent Directors, performance of non-independent directors, performance of the board as a whole and performance of the Chairman was evaluated, taking into account the views of executive directors and non-executive directors, The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual directors was also discussed.

NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS

During the year under review, 4 Board Meetings were held, one each on 30th May 2014, 14th August 2014, 13th November 2014 and 14th February 2015.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATON AND OTHER DETAILS

The Company's policy on Directors' appointment and remuneration and other matters provided in Section 178(3) of the Act has been disclosed in the corporate governance report, which forms part of the Directors' Report.

AUDIT COMMITTEE

The Audit & Compliance Committee comprises of two non- executive Directors viz. Rear Admiral M. M. Chopra, AVSM (Retd.), Prof.(Dr.) B B Tandon and one Executive Director Shri H K Singhal. During the year, the committee held four meetings. Other details of the Audit Committee are included in the Corporate Governance Report which forms part of this report.

The Board had accepted all recommendation of the Audit Committee.

DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/WHISTLE BLOWER POLICY FOR DIRECTORS

AND EMPLOYEES

The Company has formulated and published a Whistle Blower Policy to provide vigil mechanism for employees including Directors of the Company to report genuine concerns. The provisions of this policy are in line with the provisions of Section 177(9) of the Act and the revised Clause 49 of the Listing Agreement.

There are no cases reported during the year.

NOMINATION AND REMUNERATION COMMITTEE

The committee has been constituted to review and recommend compensation payable to the whole-time directors including Managing Director and senior management of the Company. The committee reviews the overall compensation structure and policies of the Company with a view to attract, retain and motivate employees, reviewing compensation levels of the Company vis-a-vis other Companies and industry in general.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

There were no Loans/ Guarantee given or Investments made by the Company during the year.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:

The particulars of every contract or arrangements entered into by the Company with related parties referred to in sub- section (1) of section 188 of the Companies Act, 2013 pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts) rules 2014, including certain arms length transactions under third proviso thereto have been disclosed in the financial statements and are enclosed in Form No. AOC-2 and the same forms part of this report. (Annexure-2)

RISK MANAGEMENT POLICY

The Board of the Company has formed a Risk Management Committee to frame, implement and monitor the Risk Management plan for the Company. The impact of various risks on the Company, and the steps taken to mitigate the same has been discussed in the Report on Management Discussion & Analysis annexed with this report. (Annexure 6) AUDITORS

As per the Provisions of Section 139 of Companies Act, 2013, M/s S.C. Dewan & Co., Chartered Accountants, were appointed as Statutory Auditors of the Company to hold office till the conclusion of Annual General Meeting to be held in the calendar year 2017(subject to ratification of their appointment at every AGM). The Company has received a certificate from them pursuant to Companies (Audit & Auditors) Rules 2014 read with Section 139 & 141 of the Companies Act, 2013, confirming their eligibility for reappointment, and that they were not disqualified for reappointment.

AUDITORS' REPORT AND SECRETARIAL AUDITORS' REPORT

The Auditors' Report and Secretarial Auditors' Report do not contain any qualifications, reservations or adverse remarks. Report of Secretarial Auditor is attached as an annexure which forms part of this report. (Annexure-3)

LISTING OF SHARES

Equity shares of the Company are listed on Mumbai and Calcutta Stock Exchanges. Listing fee to the BSE has already been paid in pursuance to clause 38 of the listing agreement. The Company has since filed an application for delisting of its shares from Calcutta Stock Exchange. However, the shares will continue to be traded on Mumbai Stock Exchange.

DEMATERIALISATION

Effective from 25th September 2000, the equity shares of your Company are being compulsorily traded in dematerialized form. As on 31st March 2015, a total of 1253 lacs equity shares, representing 92.72% of equity share capital have been dematerialized and 28688 shareholders are holding shares in dematerialized form.

INSURANCE

All the assets of the Company have been adequately insured.

PARTICULARS OF EMPLOYEES

Relations with the employees during the period under review continued to be peaceful and harmonious.

MANAGERIAL REMUNERATION

The information required under Section 197 of the Act read with rule 5 of the Companies (Appointment and remuneration of managerial personnel) rules 2014 is enclosed with this report (Annexure-4)

The Board expresses deep appreciation of all sections of employees for their support and for making efforts to increase efficiency and growth of the Company.

INDUSTRIAL RELATIONS

Industrial relations continued to be cordial during the year under review.

HEALTH, SAFETY AND ENVIRONMENT PROTECTION

Our Company has complied with all the applicable health & Safety standards, environment laws and labour laws and has been taking all necessary measures to protect the environment and provide workers a safe work environment. Our Company is committed for continual improvement in Health & Safety as well as Environmental performance by involving all the employees to provide a Safety & healthy work environment to all its employees.

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORK PLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 The Company has zero tolerance for sexual harassment at workplace and has adopted a policy against sexual harassment in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder.

During the financial year 2014-15, the Company has not received any complaint on sexual harassment and hence no complaints remain pending as of 31st March, 2015.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO

A report under the provisions of Section 134(3)(m) of the Companies Act, 2013 with regard to Conservation of Energy and Technology Absorption is attached separately (Annexure-1)

ACKNOWLEDGEMENT

Your Directors acknowledge with gratitude the assistance, co-operation and support received by the Company from the Govt. of Punjab, PSIDc, Financial Institutions, Banks, other Statutory/ Govt. Bodies, Customers and Shareholders of the Company.

On Behalf of the Board of Directors

H. K. SINGHAL R .K. GARG Chandigarh FINANCE MANAGING 30.05.2015 DIRECTOR DIRECTOR




Mar 31, 2014

Dear Members,

The Directors of your Company have pleasure in presenting the 27th Annual Report of the Company together with Audited Accounts for the financial year ending 31st March, 2014.

FINANCIAL HIGHLIGHTS

(Rs. in lacs) PARTICULARS 2013-14 2012-13

Domestic Sales (Net of Excise) 44094 33161

Export Sales 18639 5593

Total Sales 62733 38754

Other Income 380 518

Total Income 63113 39271

Gross Profit before interest 4515 2170

& depreciation

Interest & other financial 2387 1903

charges

Profit before depreciation 2128 267

Depreciation 975 648

Net Profit/(Loss) prior to Tax 1153 ( 381)

& Extra Ordinary Items

Prior period adjustment (21) (17)

Extra Ordinary Item - 815

Net Profit available for 1132 417

appropriation

The operations of the Company have improved substantially during the year. Main highlights are:-

Production and Sales increased from 20683 MT & 21885 MT to 36,121 MT & 36,076 MT respectively (increase by 75% & 65%)

Overall Sales Turnover increased from Rs. 38754 Lacs to Rs. 62733 Lacs, (increase by 62%)

Exports have increased from Rs. 5593 Lacs to Rs. 18639 Lacs, (increase by 233%)

Profit before depreciation and financial charges/ interest increased from Rs. 2170 Lacs to Rs. 4515 Lacs (by 108%)

RESEARCH AND DEVELOPMENT

The Company has an In-House R & D centre registered with the ministry of Science & Technology, Govt. of India.

During the year Company has been able to add more varieties in its product list to satisfy product needs of new markets and also for existing customers. The Company is also working for energy conservation and reduction of the fuel cost with the help of in-house R & D.

The Company is also installing 10000 worsted spindles for spinning of acrylic yarn at an estimated cost of Rs. 35 crore to meet with the specific requirements of some customers. Requisite infrastructure for the project, including captive power is already available resulting into economies in capital as well production costs.

FUTURE OUTLOOK

With addition of new capacities in Acrylonitrile Industry, prices of Acrylonitrile have remained soft during the year. Because of this, recently a large producer of Acrylonitrile has announced cut back of capacities. Such instances are likely to limit availability of Acrylonitrile in the spot market and may push prices a little. However, overall supply condition looks easy.

The shifting of Acrylonitrile manufacturing from USA/European Union region to Asia will be continuing during next two-three years. These changes will be good for steady growth of Acrylic fibre Industry in this region.

Softening of The commodity prices, alongwith above changes in the Industry structure will be good for improving the margins in Acrylic Fibre business.

FINANCIAL STATUS

There is no change in the issued and subscribed capital of Rs. 13532.21 lacs.

FIXED DEPOSITS

The Company has not accepted any fixed deposits during the year under review.

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE

During the year, your Directors have constituted the Corporate Social Responsibility and Governance Committee (CSR&G Committee) comprising Shri Dheeraj Garg as its Chairman, Shri H. K. Singhal and Shri A S Chatha as other members.

The said Committee has been entrusted with the responsibility of formulating and recommending to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, monitoring the implementation of the framework of the CSR Policy and recommending the amount to be spent on CSR activities.

SUBSIDARY COMPANY

M/s Indlon Chemicals Ltd. (Indlon) had approached the Company in April, 2013, to stop managing its affairs and withdraw the nomination of Directors. Indlon had since been managing its affairs independently without any control from our Company, thereby ceasing the Parent Subsidiary relationship between Indian Acrylics Limited and Indlon Chemicals Limited w.e.f. 01.04.2013.

Hence, the Company ceased to be subsidiary Company under Section 212 of the Companies Act, 1956.

CORPORATE GOVERNANCE REPORT

The Company is continuously taking steps to attain higher levels of transparency, accountability and equity in order to enhance customer satisfaction and stakeholders'' value. The Company not only complies with the regulatory requirements but is also responsive to the stakeholders'' as well as customers'' needs. The Company already has an Audit Committee, a Shareholders'' Grievances Committee and a Remuneration Committee duly constituted by the Board to look after various activities. The Corporate Governance practices followed by the Company are enclosed as Annexure to this report.

DIRECTORS'' RESPONSIBILITY STATEMENT

i) The Directors confirm that, in preparation of the Balance Sheet and the Profit and Loss Account of the Company, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) The annual accounts have been prepared on a going concern basis.

INTERNAL CONTROL SYSTEMS

Your Company''s internal control systems comprise of management reporting system as well as inspection of the operations of the Company by Internal Audit checks carried out internally as well as through outside agencies.

DIRECTORS

Since the last Annual General Meeting, following change have taken place in the Board of Directors:

PNB has nominated, Shri Ashok Kumar Gupta, DGM, Circle Head as a Director in place of Shri Rajeshwar K Goyal effective from 14/02/2014.

Your Directors place on record their appreciation of the valuable guidance rendered by Shri Rajeshwar K Goyal during his association with the Company.

The Company had, pursuant to the provisions of clause 49 of the Listing Agreements entered into with Stock Exchanges, appointed Shri M M Chopra, Shri B B Tandon and Shri A S Chatha as Independent Directors of the Company.

As per Section 149(4) of the Companies Act, 2013 (Act), which came into effect from April 1, 2014, every listed public Company is required to have at least one third of the total number of Directors as Independent Directors. In accordance with the provisions of section 149 of the Act, these Directors are being appointed as Independent Directors to hold office for a term of five years at the forthcoming Annual General Meeting (AGM) of the Company.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges.

As per the provisions of new Companies Act, 2013, Shri Ajay Kumar Mahajan, Director, retire by rotation at the forthcoming Annual General Meeting and being eligible offer himself for re-appointment.

AUDITORS

M/s S.C. Dewan & Co., Chartered Accountants were appointed as Statutory Auditors of the Company to hold office till the conclusion of the ensuing Annual General Meeting. The Auditors retire at the ensuing Annual General Meeting and, being eligible, have offered themselves for re-appointment. They have confirmed their eligibility and willingness to accept office if re-appointed. The company has received a certificate from them pursuant to Companies (Audit & Auditors) Rules 2014 read with Section 139 & 141 of the Companies Act, 2013, confirming their eligibility for reappointment, and that they are not disqualified for re- appointment.

The Notes on Financial Statements referred to in the Auditors'' Report are self-explanatory and do not call for any further comments.

COST AUDITORS

Pursuant to the Circular dated 24th January, 2012, of the "Ministry of Corporate Affairs (MCA), and based on the recommendation of the Audit Committee the Board of Directors of your Company have appointed "Aggarwal Vimal & Associates", Cost Accountants (Firm Registration No. 000350), as the Cost Auditor of the Company for the audit of cost accounting records maintained by the Company for the financial year 2013- 14. The appointment has been approved by the Central Government. The Report of the Cost Auditors for the Financial Year 2013-14 is under finalization and will be filed with the MCA within the prescribed time if applicable.

Further based on the Audit Committee recommendation, the Board of Directors at its meeting held on 30.05.2014 have approved the re- appointment of "Aggarwal Vimal & Associates", as the Cost Auditor of the Company for the financial year 2014- 15. The appointment is subject to approval of the Central Government.

LISTING OF SHARES

Equity shares of the Company are listed on Mumbai and Calcutta Stock Exchanges. Listing fee to the BSE has already been paid in pursuance to clause 38 of the Listing Agreement. The Company has since filed an application for delisting of its shares from Calcutta Stock Exchange. However, the shares will continue to be traded on Mumbai Stock Exchange.

DEMATERIALISATION

Effective 25th September 2000, the equity shares of your Company are being compulsorily traded in dematerialized form. As on 31st March 2014, a total of 1254 lacs equity shares, representing 92.64% of equity share capital have been dematerialized and about 29615 shareholders are holding shares in dematerialized form.

INSURANCE

All the assets of the Company have been adequately insured.

PERSONNEL

The statement of employees, as required under Section 217(2A) of the Companies Act, 1956 is not applicable as there was no employee who was drawing a salary of Rs. 60,00,000/- and above per annum if employed for full year, or a salary of Rs. 5,00,000/- and above per month if employed for a part of the year.

The Board expresses deep appreciation of all sections of employees for their support and for making efforts to increase efficiency and growth.

INDUSTRIAL RELATIONS

Industrial relations continued to be cordial during the year under review.

ACKNOWLEDGEMENT

Your Directors acknowledge with gratitude the assistance, co-operation and support received by the Company from the Govt. of Punjab, PSIDC, Financial Institutions, Banks, other Statutory/ Govt. Bodies, Customers and Shareholders of the Company.

A statement giving details of conservation of energy/ technology absorption and foreign exchange earnings and outgo in terms of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988, forms part of this report and is annexed herewith.

On Behalf of the Board of Directors

Chandigarh H. K. SINGHAL R .K. GARG 30.05.2014 FINANCE DIRECTOR MANAGING DIRECTOR


Mar 31, 2013

To The Members,

The Directors of your Company have pleasure in presenting the 26th Annual Report of the Company together with Audited Accounts for the financial year ending 31st March, 2013.

FINANCIAL HIGHLIGHTS

(Rs.in lacs) PARTICULARS 2012-13 2011-12

Domestic Sales (Net of Excise) 33161 32671

Export Sales 5593 17402

Total Sales 38754 50073

Other Income 518 537

Total Income 39271 50610

Gross Profit before 2170 1460 interest & depreciation

Interest & other financial charges 1903 1253

Profit before depreciation 267 207

Depreciation 648 976

Net Profit/(Loss) prior to Tax & (381) (769)

Extra Ordinary Items

Prior period adjustment (17) 15

Extra Ordinary Item 815 786

Net Profit available for 417 32 appropriation

The Company has recorded production of 20683 MT and sale of 21885 MT during the year under review as against 27912 MT and 29727 MT respectively during the previous year. The Sale and other incomes during the year were Rs.. 38754 lacs as against Rs.. 50073 lacs due to decrease in export sales. Export demand for Acrylic Fibre was sluggish due to economic slowdown in major economies.

Despite decrease in overall sales, Gross profit before interest, depreciation interest and tax (GPBIDT) during the current year is higher. The GPBIDT for the year under review is Rs.. 2170 Lacs as against Rs..1460 Lacs during the previous year. The expenditure on interest and financial charges, however, are higher at Rs.. 1903 Lacs as compared to Rs..1253 Lacs due to higher interest rates and increase in forex premiums due to more volatility in currency. After providing for depreciation, the

Company suffered a loss of Rs.. 381 Lacs. However, due to an exceptional income of Rs.. 814 Lacs owing to favourable decision on Company''s claim in the court in a long pending arbitration matter with the equipment/technology supplier, the Company earned a net profit during the year of Rs.. 417 Lacs compared to that of Rs.. 32 Lacs during the previous year.

RESEARCH AND DEVELOPMENT

The Company has an In-House R & D centre registered with the Ministry of Science & Technology, Govt. of India. The registration of the R & D Centre was renewed with the Ministry during the year 2011-12 with a validity upto 31.03.2014.

During the current year, the Company has been able to make significant improvements in its new product varieties and overall productivity and has achieved reduction in waste. R & D Centre introduced new products like soft feel Tow for better running in subsequent processes and for better yarn feel, Super soft feel fiber (IA-86) for the substitute of imported soft feel fiber and Bright Acrylic fiber Type IA15 in the staple cut length form. Research & Development work to introduce new value added products are under way. Some of these products are likely to be commercially launched in the current financial year. R & D Center is focusing on reverse engineering of end products like fabrics and yarns available in international and domestic markets to develop value added Acrylic Fibre to be produced in future.

Work is also in progress to launch new product varieties in dyed fiber and standardizing the dyed fiber properties for new varieties.

The Company has also been able to work on series of energy conservation measures such as replacement and installation of energy efficient pumps in water treatment plant in Utility section. Company is also in the process of converting boilers to multi fuel boilers. For improving environmental conditions the Company had installed Acoustic chamber in DG house and is in the process of installing STP plant. Efforts are also on to develop end use of Rice Husk ash which is a waste product while producing steam and power.

FUTURE OUTLOOK

Significant new capacities of Acrylonitrile (main ramaterial) manufacturing have started commercial production in the Asian Region during the year 2012-13. On the other hand some more capacities of Acrylic fibre have been closed permanently in the European Union recently. Thus our export to Middle East markets is likely to become more viable.

The shifting of Acrylonitrile manufacturing from USA/European Union region to Asia will be continuing during next two-three years. These changes will be good for steady growth of Acrylic fibre Industry in this area.

Softening of the commodity prices, alongwith above changes in the Industry structure will be good for improving the margins in Acrylic Fibre business.

FINANCIAL STATUS

There is no change in the issued and subscribed capital of Rs.. 13532.21 lacs.

FIXED DEPOSITS

The Company has not accepted any fixed deposits during the year under review.

CORPORATE GOVERNANCE REPORT

The Company is continuously taking steps to attain higher levels of transparency, accountability and equity in order to enhance customer satisfaction and stakeholders'' value. The Company not only complies with the regulatory requirements but is also responsive to the stakeholders'' as well as customers'' needs. The Company already has an Audit Committee, a Shareholders'' Grievances Committee and a Remuneration Committee duly constituted by the Board to look after various activities. The Corporate Governance practices followed by the Company are enclosed as Annexure to this report.

DIRECTORS'' RESPONSIBILITY STATEMENT

i) The Directors confirm that, in preparation of the Balance Sheet and the Profit and Loss Account of the Company, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

vi) The annual accounts have been prepared on a going concern basis.

INTERNAL CONTROL SYSTEMS

Your Company''s internal control systems comprise of management reporting system as well as inspection of the operations of the Company by Internal Audit checks carried out internally as well as through outside agencies.

DIRECTORS

Since the last Annual General Meeting, following change has been taken place in the Board of Directors:

PNB has nominated Shri Rajeshwar K Goyal, DGM, Circle Head as a Director in place of Mrs Kalpana Gupta effective from 29/05/2013.

Your Directors place on record appreciation of the valuable guidance rendered by Mrs Kalpana Gupta during her association with the Company.

Prof.(Dr.) B.B. Tandon (Retd.) and Shri A K Mahajan, Directors, retire by rotation and being eligible offer themselves for re-appointment.

AUDITORS

M/s S. C. Dewan & Co., Chartered Accountants, retire as Statutory Auditors at the ensuing Annual General Meeting. The Directors recommend their re-appointment, as Statutory Auditors, to hold the office as such till the conclusion of next Annual General Meeting.

LISTING OF SHARES

Equity shares of the Company are listed on Mumbai and Calcutta Stock Exchanges. Listing fee to the BSE has already been paid in pursuance to clause 38 of the listing agreement. The Company has since filed an application for delisting of its shares from Calcutta Stock

Exchange. However, the shares will continue to be traded on Mumbai Stock Exchange.

DEMATERIALISATION

Effective 25th September 2000, the equity shares of your Company are being compulsorily traded in dematerialized form. As on 31st March 2013, a total of 1253 lacs equity shares, representing 92.60% of equity share capital have been dematerialized and about 30385 shareholders are holding shares in dematerialized form.

INSURANCE

All the assets of the Company have been adequately insured.

PERSONNEL

The statement of employees, as required under Section 217 (2A) of the companies Act, 1956 is not applicable as there was no employee who was drawing a salary of Rs.. 60,00,000/- and above per annum if employed for full year, or a salary of Rs..5,00,000/- and above per month if employed for a part of the year.

The Board expresses deep appreciation of all sections of employees for their support and for making efforts to increase efficiency and growth.

INDUSTRIAL RELATIONS

Industrial relations continued to be cordial during the year under review.

ACKNOWLEDGEMENT

Your Directors acknowledge with gratitude the assistance, co-operation and support received by the Company from the Govt. of Punjab, PSIDC, Financial Institutions, Banks, other Statutory/ Govt. Bodies, Customers and Shareholders of the Company.

A statement giving details of conservation of energy/ technology absorption and foreign exchange earnings and outgo in terms of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988, forms part of this report and is annexed herewith.

On Behalf of the Board of Directors

Place : Chandigarh H. K. SINGHAL R. K. GARG

Dated : 29.05. 2013 DIRECTOR MANAGING DIRECTOR


Mar 31, 2012

The Directors of your Company have pleasure in presenting the 25th Annual Report of the Company together with Audited Accounts for the financial year ending 31st March, 2012.

FINANCIAL HIGHLIGHTS

(RS.in lacs)

Particulars 2011-12 2010-11

Domestic Sales (Net of Excise) 32671 30024

Export Sales 17402 10793

Total Sales 50073 40817

Other Income 537 534

Total Income 50610 41351

Gross Profit before 1460 5220

interest & depreciation

Interest & other financial 1253 1240 charges

Profit before depreciation 207 3980

Depreciation 976 4900

Net Profit/(Loss) (769) (920) Provision for tax - 9

Prior period adjustment 15 1

Provision earlier made for (786) (963)

accumulated cenvat written back Net Profit available for appropriation 32 36

Production of Acrylic Fibre increased from 27014 MT during the previous year to 27912 MT during the year under consideration. Sale of Acrylic Fibre also increased from 24147 MT to 29727 Mt, posting a strong growth of 23%. Company has also been able to increase the sale of traded goods from 2681 MT to 3805 MT. Overall sales have increased from Rs. 408 Crore in previous year to Rs. 500 Crore during the current year.

However, while 2010-11 was a good year for Acrylic Fibre Industry, the global turmoil caused by wide fluctuations in prices of textile products has affected the entire Textile Industry chain during the year. The prices of raw materials, fuel, energy and transportation cost increased sharply squeezing the gross margins thereof.

Beside, the prices of ACN have been on a roller coster throughout the year. Dumping of Fibre has also affected the local industry adversely. Due to above, gross profit which was Rs. 5220 Lacs in the previous year decreased to Rs.1460 Lacs during the current year.

The Company earned a Net profit of Rs. 207 Lacs before depreciation and extra ordinary items. There is a write back of Rs. 786 Lacs on account of excess interest provision reversed after settlement of dues of IDBI under OTS, which is shown as extra ordinary items in the Profit & Loss A/c. Net Profit after depreciation, extra ordinary items and tax has been Rs. 32 Lacs as compared to Rs.36 Lacs during the previous year.

The Company received the following awards/ recognitions during the year:

1. Certificate of Registration of Social Accountability System - SA 8000:2008 for Manufacture and supply of Acrylic Fiber.

2. "Export Award" by the Synthetic & Rayon Textile Export Promotion Council (SRTEPC) for Highest Export Performance in Acrylic Staple Fibre.

RESEARCH AND DEVELOPMENT The Company has an In-House R & D Centre registered with the Ministry of Science & Technology, Govt. of India. Its validity has been further renewed up to 31.03.2014.

Research and Development work to introduce new varieties of fibre is continuously underway and some more new product varieties are likely to start commercially during the year 2012-13.

Efforts are being made to increase the production of dyed tops and dyed staple fibre which are value added products. Company has also undertaken a project to increase the productivity of Tow to Tops manufacturing and to reduce its overall energy cost. Your Directors are confident to achieve further cost reduction and improve capacity utilization to improve the performance.

FUTURE OUTLOOK

Global production of Acrylic Fibre has increased by 4% during this year and same is estimated to grow by 1% or 2% in the next year also.

Your Company has been able to increase exports of fibre by 4287 MT (57%) in the year under consideration. With the strong presence in various export markets of Far East, Middle East countries and opening up of market by Pakistan recently to Indian Exports, your Directors are confident to increase its market share further.

Raw Material availability scenario is also improving with the start up of new Acrylonitrile Capacities in Asian Region. Prices of Acrylonitrile are expected to follow a stable trend in the medium term with the crude oil prices stablising in the International market. This will help in improving the domestic sale as well as margins in the coming year.

Efforts are also being made further to cut the cost by using new technologies available for conservation of power, process improvements etc. and by increasing production of value added products. FINANCIAL STATUS

The issued and subscribed capital of the company increased from Rs.13132.21 lacs to Rs.13532.21 lacs during the year under review. The Company has allotted additional 40,00,000 equity shares of Rs.10/- each at par to IDBI Bank Ltd. during the year in terms of OTS scheme.

FIXED DEPOSITS

The company has not accepted any fixed deposits during the year under review.

CORPORATE GOVERNANCE REPORT

The Company is continuously taking steps to attain higher levels of transparency, accountability and equity in order to enhance customer satisfaction and stakeholders' value. The Company not only complies with the regulatory requirements but is also responsive to the stakeholders' as well as customers' needs. The Company already has an Audit Committee, a Shareholders' Grievances Committee and a Remuneration Committee duly constituted by the Board to look after various activities. The Corporate Governance practices followed by the company are enclosed as Annexure to this report.

DIRECTORS' RESPONSIBILITY STATEMENT

i) The Directors confirm that, in preparation of the Balance Sheet and the Profit and Loss Account of the Company, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) The annual accounts have been prepared on a going concern basis.

INTERNAL CONTROL SYSTEMS

Your Company's internal control systems comprise of management reporting system as well as inspection of the operations of the Company by Internal Audit checks carried out internally as well as through outside agencies.

DIRECTORS

Since the last Annual General Meeting, following change has been taken place in the Board of Directors:

PSIDC has nominated Shri Samir Kumar as a Director and Chairman in place of Mrs Kavita Singh effective from 08/11/2011.

Your Directors place on record appreciation of the valuable guidance rendered by Mrs Kavita Singh during her association with the Company.

Rear Adml. M M Chopra and Shri A S Chatha, Directors, retire by rotation and being eligible offer themselves for re-appointment.

AUDITORS

M/s S. C. Dewan & Co., Chartered Accountants, retire as Statutory Auditors at the ensuing Annual General Meeting. The Directors recommend their re-appointment, as Statutory Auditors, to hold the office as such till the conclusion of next Annual General Meeting.

LISTING OF SHARES

Equity shares of the Company are listed on Mumbai and Calcutta Stock Exchanges. Listing fee to the BSE has already been paid in pursuance to clause 38 of the listing agreement. The Company has since filed an application for delisting of its shares from Calcutta Stock Exchange. However, the shares will continue to be traded on Mumbai Stock Exchange.

DEMATERIALISATION

Effective 25th September 2000, the equity shares of your Company are being compulsorily traded in dematerialized form. As on 31st March 2012, a total of 1253 lacs equity shares, representing 92.56% of equity share capital have been dematerialized and about 31835 shareholders are holding shares in dematerialized form.

INSURANCE

All the assets of the company have been adequately insured.

PERSONNEL

The statement of employees, as required under Section 217 (2A) of the companies Act, 1956 is not applicable as there was no employee who was drawing a salary of Rs.60,00,000/- and above per annum if employed for full year, or a salary of Rs.5,00,000/- and above per month if employed for a part of the year.

The Board expresses deep appreciation of all sections of employees for their support and for making efforts to increase efficiency and growth. INDUSTRIAL RELATIONS Industrial relations continued to be cordial during the year under review.

ACKNOWLEDGEMENT

Your Directors acknowledge with gratitude the assistance, co-operation and support received by the company from the Govt. of Punjab, PSIDC, financial institutions, banks, other statutory/ Govt. bodies, customers and shareholders of the Company.

A statement giving details of conservation of energy/ technology absorption and foreign exchange earnings and outgo in terms of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988, forms part of this report and is annexed herewith.

On Behalf of the Board of Directors Place : Chandigarh SAMIR KUMAR

Dated : 29.05. 2012 CHAIRMAN


Mar 31, 2010

The Directors of your Company have pleasure in presenting the 23rd Annual Report of the Company together with Audited Accounts for the financial year ending 31st March, 2010.

FINANCIAL HIGHLIGHTS

(Rs. in lacs)

2009-10 2008-09

Domestic Sales 29498 33633

(Net of Excise)

Export Sales 11328 2800

Other Income 1061 376

Total Income 41887 36809

Gross Profit/Loss before 7109 (4768) interest & depreciation

Interest & other financial 1871 1535 charge charge

Profit/(Loss) before 5238 (6303) depreciation

Depreciation 1997 1059

Net Profit/(Loss) 3241 (7362)

Provision for tax 5 (7)

Prior period adjustment 28 (16)

Extraordinary Items

I. Write back due to Settlement - 4218 - (OTS) of IFCI dues

II. Provision for - (963) accumulated cenvat

Profit available for 3208 (4130) appropriation/(Net loss)

The year 2009 would be marked as an important year for the Acrylic Fibre Industry. When the year began, major world economies were in recession. Acrylic Fibre Industry faced the prospect of a substantial contraction in consumption with no sign of recovery in the demand. However, the forecast were belied - demand was robust, acrylic fibre plants achieved higher capacity utilization and market prices started improving. With raw material prices remaining subdued, most acrylic fibre producers were able to record good performance and substantial jump in the margins.

Production during the year 2009-10 increased from 28005 MT to 36636 MT. The sales also increased from 28197 MT to 36611 MT. Better sale volumes were achieved by pushing Exports from 2474 MT in the last year to 10977 MT during the current year. The sale of acrylic yarn however was lower as Company does not have its own manufacturing facility and sufficient capacity was not available in the market for making acrylic yarn.

As against Rs.7362 lacs of net loss before tax, prior period adjustments & extraordinary items in the previous year, the Company has earned a net profit of Rs. 3241 Lacs during the year. There is an additional depreciation charge of Rs. 472 Lacs during the year consequent to change of method of charging depreciation from straight line method to written down value method in respect of a part of the plant and machinery due to technological changes & obsolescence. The net profit after tax for the year is Rs.3208 Lacs as against a net loss of Rs. 4130 Lacs in the previous year.

Due to heavy carried over losses suffered by the Company in the previous year, Company has requested for restructuring of the loans and the same is pending for approval under the CDR mechanism.

The raw material prices have increased sharpiy during last quarter putting pressure on finished product prices. The loss of gross margin caused by high raw material prices will be partially off-set by sale of power recently started by the Company under "Open-Access" scheme and lowering of cost of production due to energy conservation measures being taken. The revenues from sale of power are increasing. Efforts are also being made further to cut the cost by using new technologies available for conservation of power, process improvements etc.

The Company received the following awards/ recognitions during the year:

1. Certificate of Registration of Quality Management System - ISO 9001:2008 for Manufacture and supply of Dry Spun Acrylic Fiber, Dry Spun Acrylic Tow (Grey and Dyed) and Dry Spun Acrylic Tops (Grey and Dyed)

2. Recognition as "Export Trading House" by Government of India Ministry of Commerce & Industry for a period of five years effective from 1st April 2009 to 31st March 2014.

3. Certificate for "OeKo-Tex Standard 100" from M/s HOHENSTEIN TEXTILE TESTING INSTITUTE Germany certifying acrylic fibres made by the company free from any haimful substances and meet the human-ecological requirements of the standard presently established for baby articles.

RESEARCH AND DEVELOPMENT

The Company has an In-House R&D Centre registered with the Ministry of Science & Technology, Govt, of India.

With the help of In-house R & D, the Company is making efforts to increase use of new technologies to reduce effect of greenhouse gases and earn Carbon Credit Incomes. Company has already registered two small scale clean development mechanism (CDM) projects under the UN framework Convention of Climate Change (UNFCCC). Company has also commercially established carpet deniers products and now working on development of new range of dyed products. Trial of the same have been found to be very encouraging and we will start their commercial production in the middle of this year.

Your Directors are confident to achieve further cost reduction and improve capacity utilization to improve the performance.

Your Directors are confident that with further efforts to reduce the cost through energy conservation and by adding new range of value added products, your company shall be able to compete well and keep its market share and position intact.

FINANCIAL STATUS

There is no change in the issued and subscribed capital of Rs. 13132.21 lacs.

FIXED DEPOSITS

The company has not accepted any fixed deposits during the year under review.

CORPORATE GOVERNANCE REPORT

The Company has been taking steps to attain higher levels of transparency, accountability and equity in order to enhance customer satisfaction and stakeholders value. The Company not only complies with the regulatory requirements but is also responsive to the stakeholders as well as customers needs. The Company already, has an Audit Committee, a Shareholders Grievances Committee and a Remuneration Committee duly constituted by the Board to look after various activities. The Corporate Governance practices followed by the company are enclosed as Annexure to this report.

DIRECTORS RESPONSIBILITY STATEMENT

i) " The Directors confirm that, in preparation of the Balance Sheet and the Profit and Loss Account of the Company, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

iv) The annual accounts have been prepared on a going concern basis.

INTERNAL CONTROL SYSTEMS

Your Companys internal control systems comprise of management reporting system as well as inspection of the operations of the Company by Internal Audit checks carried out internally as well as through outside agencies.

DIRECTORS

Since the last Annual General Meeting, following changes have taken place in the Board of Directors:

i) PSIDC has nominated Shri S. S. Rajput on 30.09.2009 as a Director and Chairman in place of Shri Karan Avtar Singh.

ii) PNB has nominated Shri S. K. Awasthi on 30.09.2009 as a Director in place of Shri Rohtash Kumar.

iii) PSIDC has nominated Shri AnuragAgarwal on 30.03.2010asa Director and Chairman in place of Shri S. S. Rajput.

Your Directors place on record appreciation of the valuable guidance rendered by Shri Karan Avtar Singh, Shri Rohtash Kumar and Shri S. S. Rajput during their association with the Company.

Rear Adm. M. M. Chopra and Shri Dheeraj Garg, Directors, retire by rotation and being eligible offer themselves for re-appointment. While RearAdmiral M. M. Chopra is an Independent Director, Shri Dheeraj Garg continues to be a nominee of Shri R K Garg in terms of the Articles of Association of the Gompany.

AUDITORS

M/s S. C. Dewan & Co., Chartered Accountants, retire as Statutory Auditors at the ensuing Annual General Meeting. The Directors recommend their re-appointment, as Statutory Auditors, to hold the office as such till the conclusion of next Annual General Meeting.

LISTING OF SHARES

Equity shares of the Company are listed on Mumbai and Calcutta Stock Exchanges. Listing fee to the BSE has already been paid in pursuance to clause 38 of the listing agreement. The Company has since filed an application for delisting of its shares from Calcutta Stock Exchange. However, the shares will continue to be traded on Mumbai Stock Exchange.

DEMATERIALISATION

Effective 25th September 2000, the equity shares of your Company are being compulsorily traded in dematerialized form. As on 31st March 2010, a total of 1022 lacs equity shares, representing 77.81% of equity share capital have been dematerialized and about 32270 shareholders are holding shares in dematerialized form.

INSURANCE

All the assets of the company have been adequately insured.

PERSONNEL

Particulars of employees as required under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of employees) Rules, 1975, as amended, are appended and forms part of the Report.

The Board expresses deep appreciation of all sections of employees for their support and for making efforts to increase efficiency and growth.

INDUSTRIAL RELATIONS

Industrial relations continued to be cordial during the year under review.

ACKNOWLEDGEMENT

Your Directors acknowledge with gratitude the assistance, co-operation and support received by the company from the Govt, of Punjab, PSIDC, financial institutions, banks, other statutory/ Govt bodies, customers and shareholders of the Company.

A statement giving details of conservation of energy/ technology absorption and foreign exchange earnings and outgo in terms of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988, forms part of this report and is annexed herewith.

On Behalf of the Board of Directors

Place Chandigarh ANURAG AGARWAL

Dated: 31st May, 2010 CHAIRMAN



 
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