Directors Report of Gujarat Borosil Ltd.

Mar 31, 2018

Dear Members,

The Directors take pleasure in presenting the Twenty-Ninth Annual Report together with the Audited Financial Statements for the year ended March 31, 2018.

Financial Highlights

The highlights of the financial results of the Company for the financial year 2017-18 are as follows:

(Rs. in Lacs)

	Year Ended 31.03.2018	Year Ended 31.03.2017
Revenue from operations	19981	18833
Other Income*	350	723
Profit before finance cost, depreciation, exceptional items and tax	3908	4786
Finance cost	1377	1108
Depreciation	1668	1439
Exceptional items- Income/(Expenditure)**	(195)	-
Net Profit before tax	668	2239
Provision for Taxation/MAT/Earlier year Tax	31	(3)
Provision for deferred tax liability /(Asset) ***	(55)	814
Other Comprehensive income	4	(17)
Total Comprehensive Income	696	1412
Add: Balance brought forward from last year	(1781)	(3209)
Balance carried to Balance Sheet	(1089)	(1781)

*Other Income in the previous year included refund of Rs.559 lacs towards revision in the rates of gas transportation charges for the period from November 2008 to March 2016 pursuant to recommendation made by the Petroleum and Natural Gas Regulatory Board.

‘‘Exceptional items for the quarter and year ended 31^st March, 2018 represent loss on sale of Captive Power Plant.

"""Reduction in income tax rate by the Finance Bill, 2018 has resulted into reversal of deferred tax liability earlier recognised, accordingly there are tax credits in the year ended 31^st March, 2018.

DIVIDEND

Your Directors do not recommend any dividend for the year ended March 31, 2018 on both Equity and 9% Non-Cumulative Non-Convertible Redeemable Preference Shares, in view of carry forward losses and in order to conserve resources for the ongoing capital expenditure project to expand production capacity.

TRANSFER OF SHARES/ DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND During the year under review, the Company has transferred 22,72,014 Equity Shares of Rs.5/- each held in 17,182 records in respect of which dividend (2008-09) have not been claimed by the shareholders for a period of more than seven years, to the Demat Account of the IEPF Authority, the details of records are as under:

a. Physical - 16239 records, 2107049 equity shares

b. CDSL - 239 records, 42850 equity shares

c. NSDL - 704 records, 122115 equity shares

However, Shareholder can claim from IEPF Authority both unclaimed dividend amount and the shares transferred to IEPF Demat Account, by making an application in Form IEPF-5 online on the website www.iepf.gov.in and by complying with requisite procedure.

SHARE CAPITAL

The paid up Share Capital comprises of 6,82,07,500 Equity shares of Rs.5/- each and 90,00,000 - 9% Non-Cumulative Non-Convertible Redeemable Preference shares of Rs.100/- each. The Preference Shareholder had acquired voting rights due to non-payment of dividend for more than two years. During the year under review,

the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity. However, the Board of Directors of the Company in its meeting held on March 30, 2018 has approved Gujarat Borosil Employee Stock Option Scheme, 2018 ("ESOS 2018"), subject to approval of the members.

During the year under review, the Company has made an amendment in the Memorandum and Articles of Association of the Company, by classification of existing unissued unclassified share capital to the extent of Rs.4,00,00,000/- (Rupees Four crores) into 80,00,000 equity shares of Rs.5/- each and Increased Authorised Share capital to Rs.150,00,00,000 (Rupees One hundred fifty crores) divided into 12,00,00,000 (Twelve crores) equity shares of Rs.5/- each and 90,00,000 (Ninety lacs) Preference shares of Rs.100/- each (Rupees Hundred) each.

VARIATION IN TERMS OF PREFERENCE SHARES

The Board of Directors of the Company in its meeting held on June 18, 2018 accorded their consent to vary the rights, terms and conditions of the preference shares to the extent and manner given below, subject to requisite approvals:

1. The period of redemption of 90,00,000 9% Non-Cumulative Non-Convertible Redeemable Preference Shares of Rs. 100/- (Rupees One Hundred only) each shall be extended for a further period of 3 (Three) years. The aforesaid preference shares shall be now due for redemption on March 15, 2022;

2. Undeclared cumulative dividend on this Preference shares shall be payable as and when declared by the Company or otherwise, at the time of redemption and

3. All other terms and conditions associated with the aforesaid preference shares shall remain same. CHANGE IN PLACE OF REGISTERED OFFICE

The Board of Directors of the Company in its meeting held on June 18, 2018 accorded their consent to shift the Registered Office of the Company from "State of Gujarat" to the "State of Maharashtra" and approved consequent amendment of Clause-II of the Memorandum of Association of the Company, subject to requisite approvals.

STATE OF AFFAIRS/ PERFORMANCE

Revenue during the year under review grew by 6% from Rs.18,833 Lakhs achieved in the previous year to Rs 19,981 Lakhs during FY18. This was enabled by increasing the proportion of revenue from tempered solar glass. During the year from July 2017 the Company expanded its tempering capacity for solar glass by adding a new state-of-the-art tempering line from a leading European supplier of tempering equipment. The new line was inaugurated and dedicated to the Nation by Padma Vibhushan Dr. R. Chidambaram, Principal Scientific advisor, Government of India, on the 10^th of October 2017. The company now has tempering capacity in excess of its solar glass production capacity.

The said tempering line has given the Company the added capability to temper thinner glass from 2 mm thickness to 3 mm as against only with a minimum thickness of 3.2 mm hitherto. There is a growing demand for Glass-to-glass modules, which requires fully tempered 2 mm glass sheets. A fully tempered 2 mm glass qualifies as a safety glass too. It is certified to conform to European standard EN 12150-1 for Fragmentation and Mechanical strength parameters for roof top applications unlike a heat strengthened glass.

Owing to its cost effectiveness due to long-term performance durability and low weight of the structure and frameless design, the emerging 2mm textured solar glass segment in the Photovoltaic solar market is expected to grow Multifood in the near future. Gujarat Borosil has become the first in the world to have achieved the distinction of producing fully tempered 2mm textured solar glass using the thermal tempering process. The Company has already sent its first shipments of this product against orders from its European customers. With the commissioning of this new line, the Company''s tempering capacity has nearly doubled. Moreover, it has added capability to offer solar glass in intermediate thicknesses, e.g. 2.8mm and 2.5mm which will allow manufacturers to make completely new, lighter and more efficient photo voltaic modules. The Company expects to be able to cater to the growing demand for new products within the overall ecospace of Solar Tempered glass.

Owing to enhancement of tempering capacity, sales of solar tempered glass grew by 25% As the company executed its strategic shift towards higher production of solar glass, sales of patterned glass which is also done by using the same glass production facility to maximize capacity utilization, had to be curtailed.

Exports (other than to customers in SEZ) during the year under review were higher at Rs. 3,632 lacs as compared to Rs. 2,610 lacs during the previous year. Exports to customers in SEZ were lower at Rs. 628 lacs as against Rs.1,713 lacs during the previous year.

Pressure from low selling prices of solar glass from China and Malaysia contributed to a decline in sales prices of the company''s products during FY18.

The Company has executed a number of initiatives in order to compete with the threat of Chinese & Malaysian dumping, Firstly, on the cost front, with various R & D efforts, the Company has successfully reduced cost of raw materials consumed. This includes lower consumption of sodium antimonite and savings through imports of soda ash. On the energy front, as per internal information, the Company is already more efficient then its international competitors. However, the cost /unit of electricity is higher at the Company''s manufacturing location. The Company has started to purchase open access power in order to reduce per unit cost of power. The Company also has begun to dispatch goods without using packing materials, in order to save cost and be more environmentally concerned by way of using less wood.

Secondly, the Company also is adding value to the customers by innovating new products like 2 mm fully tempered glass. This glass makes the solar module more efficient and can be used in bifacial modules, thereby increasing efficiency by over 25% as well as increasing the life of the module from 25 to 40 years. Our R &D efforts have made us the first in the world to offer this product. Such new product development initiatives will further allow us to meet the threat of Chinese & Malaysian dumping.

Profit before finance cost, depreciation, exceptional items and tax during FY18 was at Rs. 3,908 Lacs as compared to Rs. 4,786 Lacs (which included a one-time refund of Rs. 559 lacs from GAIL for 2008 to 2016) in the previous year. The net decline was contributed by production loss due to temporary suspension of production, undertaken to carry out hot running repairs to the furnace, and trials to manufacture 2mm fully tempered glass during FY18 and continued pressure on selling prices.

Higher finance cost and additional depreciation of Rs. 498 lacs on account of the new tempering line coupled with reasons mentioned above, resulted in a decline in profit before tax during FY18 to Rs. 668 lacs as against Rs. 2,239 lacs (which included a one-time refund of Rs. 559 lacs from GAIL for 2008 to 2016) in the previous year. Your company was successful in its application for imposition of anti-dumping duty on imports of dumped solar glass from China effective from 18^th August, 2017 for a period of 5 years. During the year 2017-18 imports of tempered solar glass from Malaysia have burgeoned following the installation of a large new plant there. Prices offered from this plant are even lower than imports from China. Imports from Malaysia contributed almost 45% of the total imports in the country. Based on an application by your company, the government has initiated an investigation into the imports of solar glass from Malaysia. A positive decision by the government will create a growth environment for domestic production.

Imports of solar tempered glass have risen considerably over last 3 years and are now 250% of the supplies from the Company. There exists significant scope for selling additional capacity based on the existing domestic production of solar photovoltaic modules. Meanwhile, the solar cell and module manufacturers are trying to get safeguard and anti-dumping duties levied on imports of solar cells and modules. Based on the current climate favoring domestic production of solar manufacturing, it is expected that a level playing field will become available to Indian manufacturers. This will boost domestic manufacturing of modules and expand the demand for solar glass.

In view of all these factors, the Company is setting up a new furnace with tempering facility of 210 TPD at the existing location. The additional capacity is tentatively expected to be in production by the 2^nd quarter of 2019-20.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

Some statements in this discussion pertaining to projections, estimates, exceptions or outlook may be forward looking. Actual results may however differ materially from those stated on account of various factors such as changes in government regulations, tax regimes, economic developments, currency exchange rates and interest rate movements, impact of competing products and their pricing, product demand and supply constraints within India and other countries where the Company conducts business. Estimates made with regard to market size of various segments and their respective rates of growth are internal estimates made by the management.

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is engaged in production of low iron solar glass for application in the solar power sector. Until 2011 the Solar PV market was concentrated mainly in developed economies. However, since then China has risen rapidly to become the dominant player in both manufacturing and installations. This has also led to flooding of international markets with highly subsidized components including solar glass, cells and photo voltaic modules by China. In 2011, the Government of India had announced a target of installing of 20 GW of solar power by 2020. In

2014 the new government has imparted enormous momentum to the solar sector by setting a target of installation of 100 Giga Watt (GW) by the year 2022. Besides grid connected installations, the program gives huge emphasis on the irrigation sector by promoting the use of solar powered pumps and by encouraging off-grid roof-top and standalone solar power solutions.

In 2017 global solar PV installations exceeded a record breaking 100 GW of which China alone accounted for about 53 GW. The market is experiencing exponential growth.

During the calendar year 2017 solar installations of 9.6 GW were added in new large-scale grid and rooftop solar capacity, which was more than double the installations of 4.3 GW in 2016. This robust growth boosted the country''s total installed capacity to 19.6 GW as of December 2017.

Rooftop installations grew by 56 % year-on-year with cumulative installations totalling nearly 1.6 GW as of December 31, 2017.

The program would also contribute to the development of a market for solar rooftop financing to meet the government of India''s ambitious target of achieving 40 GW of rooftop solar power by 2022.

With projected growth, India will soon become the 2^nd largest market for new installations. However, the domestic manufacturing sector still awaits the necessary support from the government, as cheap imports continue to take a lion''s share in the installations on price considerations due to reverse bidding mechanism. The Government needs to take suitable policy initiatives and create the eco system necessary to promote serious investment in the domestic manufacturing of all the solar components, which will assure energy security to the nation besides generating large scale employment and potentially conserve US$ 45 billion worth of foreign exchange.

The Company continues with its plans to produce limited quantity of premium quality patterned glass to maintain its presence in the architectural glass market. This limited quantity of patterned glass in exclusive designs is made for architectural applications largely catering to shower cubicles, partitions and table tops, etc.

B. OPPORTUNITIES & THREATS OPPORTUNITIES

The Company remains the only producer of solar glass in the country and enjoys widespread acceptance of its product. It constantly evaluates avenues for growth in this sector in both domestic and export markets. In the domestic market, its natural advantage of offering a shorter lead time to module manufacturers works favourably in helping it to secure business.

Despite concerns about weak power demand growth and growing incidence of grid curtailment, the solar power outlook in India remains very strong;

Solar accounted for approximately 45 % of all new generation capacity added in India during 2017. This robust installation activity also made solar the single largest source of new power capacity additions in 2017.

India''s pipeline of utility-scale projects under development stood at approximately 10.6 GW at year-end 2017, with another 4.3 GW of tenders pending auction.

The Government is working on various proposals to boost domestic manufacturing of solar modules and components. Solar Energy Corporation of India (SECI) has invited Expressions of Interest from prospective project developers to set up 5 GW of solar PV projects in a phased manner during the next three years. The manufacturing capacity will be linked to inter-state transmission system (ISTS)-connected solar photovoltaic (PV) projects for an aggregate capacity of 10 GW. SECI will enter into power purchase agreement (PPA) with the successful bidders for purchase of solar power for a period of 25 years.

For the manufacturing unit, the manufacturer can use any technology for producing modules, provided that the materials used in the process are produced domestically. The only major raw material that can be imported is polysilicon. The manufacturing unit must be developed over a three-year period from date of award.

This is the first step towards making India''s solar supply chain strong.

The Director General Safeguard Duties has recommended levy of safeguard duty on imports of solar cells and modules. However a final decision is yet to be taken. The solar cell and module producers are also seeking imposition of anti-dumping duties. These measures once taken will create substantial demand for solar components, including glass.

In view of growth in the sector, the domestic module manufacturing is growing. This will need higher supplies of solar glass. The glass imports have risen to almost 275 TPD as against current supply of 125 TPD by the Company. This provides huge opportunity to the Company to tap this demand.

Gujarat Borosil''s thinner fully tempered solar glass (2 mm) coupled with a frameless module design is the most befitting product for Rooftop application owing to its low weight and long-term performance durability. The fully tempered 2 mm solar glass is a niche product and can provide substantial upside in operational performance going forward.

THREATS

> Government policies to provide solar power at cheapest price and the methods like reverse bidding for power projects has led to possibilities of compromise on quality and long-term aspects. This has been keeping the manufacturers of components away from taking up expansion plans. However, the indications are that the solar power rates have now bottomed out and are in fact slightly rising.

The uncertainty prevailing due to petition filed for imposing safeguard and anti-dumping duty on Imported solar cells & modules and a 7.5% port duty on imported modules has resulted in a setback in solar PV installations in 2018 leading to lowering of the targets. The air on 7.5% duty is cleared after the port duty is nullified. The Ministry of New and Renewable Energy (MNRE) of the Government of India has recently clarified that the safeguard duty will be a pass through which should lead the concerns to rest. However, these measures can still be subjected to scrutiny by international agencies like WTO.

- Compared to 2016, imports of solar cells and modules into India in 2017 grew by 47%. India continues to meet the demand for Cells and modules to the extent of 87% by imports largely from China, Taiwan and Malaysia. Recently USA has announced safeguard duties on imports of solar cells and modules from China and many other countries. This may lead to these geographies increasing their focus on targeting the Indian market in an even bigger way, which may lead to higher imports. This may affect domestic manufacturing of solar modules and adversely impact solar glass demand and /or put pressure on selling prices.

- Currently China is installing solar capacities for which a significantly large portion of their huge production capacities of solar components gets utilized. In the event of a slowdown in their domestic installations for solar PV, the Chinese producers can further impact the other markets in terms of both volumes and prices. Solar glass is a continuous process industry and any abrupt change in Government policies to cut the targets can result into surplus capacity for glass. This may cause severe pressure on the selling prices of glass and adversely affect the profitability.

- China as the World''s largest PV glass producer accounts for over 90% of the total solar glass capacity. The Chinese producers are setting up manufacturing plants in Vietnam and Malaysia to cater to South East Asian, Indian, European and Japanese customers. One plant of 900 Tons per day PV glass manufacturing has commenced in Malaysia in the beginning of 2017. A significant portion of solar glass imports now originate from Malaysia at a price even lower than the Chinese imported prices. There are two more plants in the pipeline which are likely to come up in 2018 and 2019 respectively in Malaysia with a capacity of 1000 MT/day each. Also, the plant in Vietnam with another 1000 MT/day is expected to be commissioned by end of 2018. Thus glass availability is increasing rapidly and this could lead to subdued prices unless old inefficient plants keep closing and suitable duty measures are put in place by Indian authorities in a timely fashion. The Company''s application for levy of a suitable anti-dumping duty levy on solar glass imports from Malaysia needs to be positively disposed of at the earliest.

- Module producers based in SEZ zones in the country continue to clear the modules in domestic tariff area without bearing any anti-dumping duties on solar glass. This is a big anomaly in the policy which needs to be corrected for a healthy competition in the Module manufacturing industry.

C. SEGMENTWISE OR PRODUCTWISE PERFORMANCE

The Company''s business activity falls within a single primary business segment viz. Manufacture of Flat glass. As such, there are no separate reportable segments as per Indian Accounting Standard 108.

The Segment Revenue in the Geographical Segment considered for disclosure are as follows:

i) Revenue within India includes sales to customers located within India excluding SEZ and EOU.

ii) Revenue outside India includes sales to customers located outside India including to SEZ/EOU and Export Benefits / Incentives

Sales:	2017-18 (Rs. In lacs)	2016-17 (Rs. In Lacs)
Within India	15,721	14,510
Outside India	4,260	4,323
TOTAL	19,981	18,833

D. OUTLOOK

The growth of solar energy in the Country has gained momentum which will require huge quantity of solar glass. The Government plans to set up 100 GW of solar power installations by 2022. The action on the ground has speeded up and all the sectors i.e. Grid power, Rooftop and Solar water pumps are showing good growth. The Government has recently announced that all the villages now have electricity and now plans to ensure electricity for each household. The agencies like SECI are creating enough demand pipeline visibility and auctions are being held much in advance.

The solar energy produced will reduce pressure on natural resources besides being non-polluting and environment friendly and will lead to saving in the Oil import bill. It is expected that a very significant portion of new power installations will come from renewables led by solar. As the only domestic manufacturer of solar glass, your Company expects to participate in and benefit from the extremely strong growth potential for the solar sector.

E. RISK AND CONCERNS

The Company is exposed to normal industry risk factors of competition, economic cycle and uncertainties in the international and domestic markets.

The Government approvals for land and readiness of power distribution companies to evacuate power needs to be focused in order to achieve ambitious growth plans to produce solar energy. The continued pressure to quote lower prices for electricity in the biddings to get Government allocations is leading to lower prices for input/component manufacturers thereby making them vulnerable, which could affect the health of the Industry.

There are huge imports of Modules from various countries and imports of Solar glass from China/Malaysia in view of huge capacities created by these countries in most cases incentivized in many ways. The import of modules reduces the demand for components. The absence of a suitable import duty structure impacts the incentive for taking up domestic production.

There is a need to create a domestic manufacturing policy and a road map in this strategically important industry. It is expected that a manufacturing policy for solar to develop entire eco-system will be framed sooner than later thereby paving the way for robust growth and achievement of plans.

F. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate Internal Control Systems commensurate with its size and nature of business. All transactions are properly authorized, recorded and reported to the management. The internal control systems are designed to ensure that the financial statements are prepared based on reliable information. Internal Audits are continuously conducted by an in-house Internal Audit department of the Company and Internal Audit Reports are reviewed by the Audit Committee of the Board periodically.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The operational performance during the year improved as record production of solar glass and sales was achieved. The EBIDTA margins dropped to 19% as against 24% in the previous year. The decline in profitability was primarily due to a drop in selling prices on some short-term contacts to sell additional production from the expanded tempered glass capacity and to counter cheap imports of solar glass from China and Malaysia. In addition, the Company incurred higher expenses and production loss due to a planned hot repair of furnace to maintain its life and trials of the new 2mm thinner glass.

H. MATERIAL DEVELOPMENT IN HUMAN RESOURCES, INDUSTRIAL RELATION FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The industrial relations continued to be cordial.

Number of people employed as on 31^st March, 2018 were as under:

Staff : 222

Workers : 159 (Excluding contract labour)

The Company has effective HR systems to make the performance appraisals and working more transparent. Greater operational and financial details are shared with the management cadre with a view to having their deeper involvement and for development of human resources. In order to align senior management focus with long-term shareholder objectives, the Board of Directors of the Company in its meeting held on March 30, 2018, approved Gujarat Borosil Employee Stock Option Scheme, 2018 ("ESOS 2018"), subject to approval of the members.

CORPORATE GOVERNANCE

As required by Regulation 34 read with schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Report on Corporate Governance is appended along-with a Certificate of Compliance from the Auditors.

SCHEME OF AMALGAMATION AND ARRANGEMENT:

The Board of Directors of the Company in its meeting held on June 18, 2018 approved Composite Scheme of Amalgamation and Arrangement. After examination of various aspects and business expediencies it was decided that Vyline Glass Works Limited (VGWL) and Fennel Investment and Finance Private Limited (FIFPL) and Gujarat Borosil Limited (GBL) will merge with Borosil Glass Works Limited (BGWL), holding Company AND thereafter existing businesses of BGWL (except liquid investments of Rs.125 crores and 7.95 hectares of land) alongwith business of VGWL, will demerge into Hopewell Tableware Private Limited (HTPL) which will be renamed to represent BGWL''s business. The present BGWL after demerger will be renamed to represent GBL''s Solar glass business.

The scheme would:

a) Result in simplification of the group structure by eliminating cross holdings.

b) Confer shares in each business to each existing shareholder of all the companies thereby giving them an opportunity to participate in both the businesses i.e. scientific & industrial products and consumer products businesses of BGWL and solar business of GBL. They will be able to decide whether to stay invested or monetize their investment in either of the businesses thereby unlocking value for the shareholders.

c) Enable each business to pursue growth opportunities and offer investment opportunities to potential investors.

d) Result in economies in business operations, provide optimal utilization of resources and greater administrative efficiencies.

BGWL is a holding Company of our Company and is engaged in the business of laboratory glassware, microwavable kitchenware and other consumer ware items. Shareholders of GBL other than BGWL and FIFPL will receive shares in the ratio of 1:8 in existing BGWL as also 1:10 no of shares in HTPL (post demerger) against each share in BGWL.

VGWL, held (99.54%) by the promoters of BGWL, is in the business of manufacturing glass and glass products, which it supplies primarily to BGWL. Under the Scheme, Shareholders of VGWL will receive shares in the ratio of 100:162 in existing BGWL as also 1:10 no of shares in HTPL (post demerger) against each share in BGWL.

FIFPL is an associate company of BGWL and registered as a Non-Banking Financial Institution. It is held by BGWL and the promoters of BGWL. Shareholders of FIFPL other than BGWL and VGWL will receive shares in the ratio of 100:218 in existing BGWL as also 1:10 no of shares in HTPL (post demerger) against each share in BGWL.

HTPL is engaged in the business of manufacturing and marketing of opal tableware items and is presently a wholly owned subsidiary of BGWL.

BGWL shareholders, while retaining their existing holding, will also receive 1 share in HTPL (post-merger) against 10 shares held in BGWL. HTPL will be listed on BSE and NSE post completion of the Scheme.

The share exchange ratio has been arrived at as per a valuation report by SSPA & Co, Chartered Accountants. A fairness opinion has been provided by M/s Keynote Corporate Services Ltd.

The amalgamation will eliminate cross holdings among group companies and simplify the group structure. A key rationale is the reduction in related party transactions in the current operations. This Scheme will also make available a part of the funds required for impending expansion project of GBL.

Thus, under the aforesaid Scheme, shareholders of GBL, VGWL and FIFPL will get shares both in existing BGWL (which will be renamed) and in the existing HTPL (which will be renamed) after demerger of BGWL business (along with business of VGWL) into HTPL.

DEPOSITS

The Company has not accepted any deposits and as such, no amount of principal or interest was outstanding on the date of the Balance Sheet. There is no deposit which is not under compliance of Chapter V of Companies Act, 2013.

SUBSIDIARY COMPANIES

The Company does not have any subsidiary Company.

The Company is an associate company of Fennel Investment and Finance Private Limited by virtue of their holding of more than 20% of the equity share capital in the Company.

The Company was an associate company of Borosil Glass Works Limited (BGWL) till May 06, 2018 by virtue of their holding of more than 20% of the equity share capital in the Company. However, in view of amendment of Section 2(87) of the Companies Act, 2013, which defines ''Subsidiary Company'', the Company has become a subsidiary of BGWL effective May 07, 2018, as BGWL controls more than one-half of the total voting power. WHISTLE BLOWER POLICY / VIGIL MECHANISM

The Company has established a Whistle Blower (Vigil) Mechanism and formulated a Whistle Blower Policy to deal with instance of fraud and mismanagement. The details of the Policy are explained in the Corporate Governance Report, which form part of this Annual Report and also posted on the website of the Company at http://www. gujaratborosil.com/policies.html - click on Whistle Blower Policy BOARD OF DIRECTORS, ITS MEETINGS, EVALUATION ETC.

Board Meetings:

During the year, five Board Meetings and four Audit Committee Meetings were convened and held. The details of these are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

Appointment/ re-appointment:

As per the provisions of the Companies Act, 2013 and Articles of Association of the Company, Mr. P. K. Kheruka (DIN 00016909), Director of the Company will retire by rotation at the ensuing Annual General Meeting of the Company and being eligible offers himself for re-appointment. The Board recommends his re-appointment.

Mr. Rajesh Chaudhary (DIN 07425111) resigned as Whole Time Director of the Company with effect from March 31, 2018 and Mr. Ramaswami Velayudhan Pillai (DIN 00011024) has been appointed as Additional Director, Whole Time Director and Key Managerial Personnel of the Company with effect from April 01, 2018.

Brief details of the Director(s) being appointed/ reappointed have been incorporated in the Notice for the forthcoming Annual General Meeting.

Except as stated above, there is no other change in the composition of the Board of Directors and Key Managerial Personnel during the year under review.

Declaration by Independent Directors:

The Independent Directors have submitted the declaration of independence, as required pursuant to Section 149(7) of Companies Act, 2013, stating that they meet the Criteria of independence as provided in sub-section (6) of Section 149 of the Companies Act, 2013.

Company''s Policy on Directors Appointment and Remuneration etc.:

Under Section 178 of the Companies Act, 2013, the Company has prepared a policy on Director''s appointment and Remuneration. The Company has also laid down criteria for determining qualifications, positive attributes and independence of a Director. Policy relating to remuneration for the Directors, Key Managerial Personnel and Other employees is attached herewith as an ''Annexure A'' to this Report.

The Company has formulated a policy relating to remuneration for the Directors, Key Managerial Personnel and other employees. This is available on the website of the Company at http://www.gujaratborosil.com/policies.html

- click on Remuneration Policy.

Familiarization Programme for Independent Directors:

A Familiarization programme was prepared by the Company about roles, rights and responsibilities of Independent Directors in the Company, nature of industry in which the Company operates, business model of the Company, about Secretarial Standard-Board & General Meeting, SEBI (LODR) Regulations, 2015 etc., which was presented to Independent Directors on November 13, 2017. The details of the above programme are available on the website of the Company at http://www.gujaratborosil.com/directors.html - click on Familiarization Programme for Independent Directors.

Formal Annual Evaluation:

In compliance with the Companies Act, 2013 and Regulations 17, 19 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the performance evaluation of the Board was carried out during the year under review.

The Formal Annual Evaluation has been made as follows:

1. Manner of effective evaluation:

The Company has laid down evaluation criteria separately for the Board, Independent Directors, Directors other than Independent Directors and various committees of the Board in the form of questionnaire. Evaluation of Directors

The criteria for evaluation of Directors (including the Chairman) include parameters such as willingness and commitment to fulfil duties including attendance in various meetings, high level of professional ethics, contribution during meetings and timely disclosure of all the notice/details required under various provisions of laws.

Evaluation of Board and its various committees

The criteria for evaluation of Board include whether Board meetings were held in time, all items which were required as per law or SEBI (LODR) Regulations, 2015 to be placed before the Board, have been placed, the same have been discussed and appropriate decisions were taken, adherence to legally prescribed composition and procedures, timely induction of additional/ women Directors and replacement of Board members/Committee members, whenever required, whether the Board regularly reviews the investors grievance redressal mechanism and related issues, Board facilitates the independent directors to perform their role effectively etc.

The criteria for evaluation of committee include taking up roles and functions as per its terms of reference, independence of the committee, policies which are required to frame and properly monitored its implementation, whether the committee has sought necessary clarifications, information and explanations from management, internal and external auditors etc.

Based on such criteria, the evaluation was done in a structured manner through peer consultation & discussion.

2. Evaluation of the Board was made by a Separate Meeting of Independent Directors held under Chairmanship of Mr. Ashok Kumar Doda, Lead Independent director (without attendance of non - Independent Director and members of management) on 30^th March, 2018.

3. The performance evaluation of all committees namely:

1. Audit Committee

2. Nomination and Remuneration Committee

3. Corporate Social Responsibility Committee

4. Share Transfer Committee were done by the Board of Directors at its meeting held on 30^th March, 2018. However, performance evaluation of Stakeholders Relationship Committee was done on May 10, 2018.

4. Performance evaluation of non - Independent Directors namely Mr. B. L. Kheruka, Mr. P. K. Kheruka, Mr. Ashok Jain and Mr. Rajesh Chaudhary was done at a Separate meeting of Independent Directors.

5. Evaluation of Independent Directors namely Mr. Shashi Kumar Mehra, Mr. Jagdish M. Joshi and Mr. Ashok Kumar Doda and Mrs. Shalini Kamath was done (excluding the Director who was evaluated) by the Board of Directors of the Company at its meeting held on 30^th March, 2018.

6. I n addition, the Nomination and Remuneration Committee has carried out evaluation of every Director''s performance at its meeting held on 30^th March, 2018 as required under Section 178 (2) of Companies Act, 2013.

7. The Directors expressed their satisfaction with the evaluation process. Performance evaluation of Board/ Independent Directors/ Committees was found satisfactory.

AUDIT COMMITTEE:

The details pertaining to the composition, terms of reference and other details of the Audit Committee of the Board of Directors of your Company and the meetings thereof held during the financial year are given in the Report on Corporate Governance section forming part of this Annual Report. All recommendations of the Audit Committee in terms of its charter were accepted by the Board of Directors of your Company from time to time during the year under report.

KEY MANAGERIAL PERSONNEL

Key Managerial Personnel (KMP) of the Company under Section 203 of the Companies Act, 2013 are as follows:

SR NO.	NAME	DESIGNATION
1	Mr. Ramaswami Velayudhan Pillai	Whole Time Director with effect from April 01, 2018
2	Mr. Rajesh Chaudhary	Whole Time Director upto March 31, 2018
3	Mr. Sunil Roongta	Chief Financial Officer
4	Mr. Kishor Talreja	Company Secretary

DEVELOPMENT AND IMPLEMENTATION OF RISK MANEGEMENT POLICY

The Company faces various risks in the form of financial risk, operational risks etc. The Company understands that it needs to survive these risks in the market and hence has developed a comprehensive policy on Risk Management.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As part of its initiatives under "Corporate Social Responsibility" (CSR), the Company has undertaken projects in the area of education which were in accordance with Schedule VII of the Companies Act, 2013.

During the year, the Company contributed:

A. Rs.22,40,000/- to Borosil Foundation, which in turn contributed:

-Rs.2,40,000/- to Seva Yagna Samiti, Bharuch, Gujarat for avoiding malnutrition as a measure of preventive health care & for food supply to patients of Government hospital at Bharuch, Gujarat,

-Rs.10,00,000/- to Friends of Tribals Society, Mumbai, as a part of a project being undertaken by them for imparting education in tribal areas under One Teacher School (OTS) called Ekal Vidyalayas,

-Rs.10,00,000/- to Saat Saath Arts, Jaipur, for protection of national heritage, art and for cost of shipping of the artworks and logistics of the exhibition that will be part of the Sculpture Park at Madhavendra Palace, Nahargarh Fort, Jaipur And

B. Rs.11,00,000/- to Manav Seva Mandal Global Parli for promoting education and making available safe drinking water at schools/hostel in Beed district, Maharashtra.

In terms of Section 135 of the Companies Act, 2013 and Rules made thereunder, the Company has constituted CSR committee comprising of the following members:

1. Mr. B. L. Kheruka-Chairman

2. Mr. P. K. Kheruka

3. Mr. Jagdish Joshi out of which Mr. Jagdish Joshi is an Independent Director.

a. The CSR Committee of the Board of Directors indicates the activities to be undertaken by the Company (within the framework of activities as specified in Schedule VII of the Act) during the particular year.

b. recommends to the Board the amount of expenditure to be incurred during the year under some of the activities covered in the Company''s CSR Policy.

c. monitors the said policy.

d. ensures that the activities as included in CSR Policy of the Company are undertaken by it in a phased manner depending on the available opportunities.

Company''s CSR Policy:

The Board of Directors of the Company has approved the CSR Policy as recommended by the CSR Committee and the same has been uploaded on the Company''s website at http://www.gujaratborosil.com/policies.html - click on CSR policy.

Initiatives taken by the Company during the year:

The 2% of the net profits of the Company during the immediate three preceding financial years amounts to Rs.32.88 lacs. The Company has contributed a sum of Rs.33.40 lacs during the year.

The Company has jointly with Borosil Glass Works Limited (BGWL), holding Company and Hopewell Tableware Private Limited (HTPL), wholly owned subsidiary of BGWL constituted a Trust namely - ''Borosil Foundation'' with the main objective of making CSR contributions by the Company, BGWL and HTPL, from time to time.

An Annual Report on CSR activities in terms of Section 134(3) (o) of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility) Rules, 2014 is attached herewith as an ''Annexure B'' to this Report. Reason for non-spending balance CSR contribution:

Although, the Company has made contribution in excess of limit. However, the following amount will be spent during the financial year 2018-19:

- Rs. 80,000/- contributed to Seva Yagna Samiti through Borosil foundation

- Rs. 10,00,000/- contributed to Friends of Tribals Society through Borosil foundation POSTAL BALLOT

During the year under review, your Company sought the approval of the Shareholders on the following Special Resolution(s), vide Postal Ballot Notice dated August 08, 2017:

a. Amendment in Articles of Association of the Company

b. Amendment in Memorandum of Association of the Company - Classification and Increase of Authorized Share Capital

c. Raising of finance through issue of securities

d. Increase in borrowing powers up to Rs.300 crores.

The results on the voting conducted through Postal Ballot process were declared on October 04, 2017. Further, details related to the Postal ballot procedure adopted, voting pattern and result thereof have been provided under the General meeting section of ''Report on Corporate Governance''.

EXTRACT OF ANNUAL RETURN

Pursuant to section 92(3) of the Companies Act, 2013 (''the Act'') and rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of annual return in form MGT 9 is attached as an ''Annexure C'' to this Report and forms part to the report of the Board of Directors.

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable. All Related Party Transactions are placed before the Audit Committee as also the Board for approval. The policy on Related Party Transactions as approved by the Board is uploaded on the

Company''s website at http://www.gujaratborosil.com/policies.html - click on Related Party Transaction policy.

The details of the transactions with Related Party are provided in the accompanying financial statements.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.

During the year under review, the Company has received an inspection notice from Regional Director, NorthWestern Region, Ministry of Corporate Affairs at Ahmedabad, Gujarat ("Regional Director") and subsequently an observation notice from the Regional Director in relation to certain violations/irregularities of the provisions of the Companies Act, 2013. The Company has replied to their observation notice.

POLLUTION CONTROL

The Company''s plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS

During the year under review, there have not been any instances of fraud and accordingly, the Statutory Auditors have not reported any frauds either to the Audit Committee or to the Board under Section 143(12) of the Act. AUDITORS:

STATUTORY AUDITORS

M/s. Chaturvedi & Shah, Chartered Accountants, Mumbai (Firm Registration no.101720W), were appointed as Statutory Auditors of your Company for a term of five years from the conclusion of the 27^th Annual General Meeting held on August 08, 2016 till the conclusion of the 32^nd Annual General Meeting. Since then, proviso to sub-section (1) of Section139 of the Companies Act, 2013, which provided for such ratification every year, has been deleted. However, since the resolution passed on August 08, 2016 contains such requirement, it has been decided, as a major of abundant caution, to have ratification of appointment Statutory Auditors, done by the members for the entire unexpired period.

The Statutory Auditor''s Report for the financial year 2017-2018 does not contain any qualifications, reservations, adverse remarks or disclaimer and no frauds were reported by the Auditors to the Company under sub-section

(12) of Section 143 of the Act.

COST AUDITORS AND COST AUDIT REPORT

Pursuant to section 148 of the Companies Act 2013 and Rules made thereunder, the Board of Directors on the recommendation of the Audit Committee appointed M/s. Kailash Sankhlecha & Associates, Cost Accountants, as the Cost Auditors of the Company for the financial year 2018-19 and has recommended their remuneration to the Shareholders for their ratification at the ensuing Annual General Meeting.

The Audit Committee has also received a certificate from the Cost Auditor certifying their independence and arm''s length relationship with the Company. Pursuant of Section 148(6) of the Companies Act, 2013 and Rules made thereunder, the Cost Audit Report for the financial year 2016-17 was filed with the Ministry of Corporate Affairs on 31^st August, 2017 vide SRN no. G51703312.

SECRETARIAL AUDIT

In terms of Section 204 of the Act and Rules made there under, Mr. Virendra Bhatt, Practicing Company Secretary (CP no.124) has been appointed as Secretarial Auditors of the Company. The report of the Secretarial Auditors is attached as an ''Annexure D'' to this Report. The Secretarial Audit Report does not contain any qualifications, reservations or adverse remarks by the Secretarial Auditors.

DIRECTORS'' RESPONSIBILITY STATEMENT

To the best of knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3) (c) of the Companies Act, 2013:

a. that in the preparation of the annual financial statements, the applicable Indian accounting standards have been followed and there were no departures;

b. that we have selected such accounting policies and applied them consistently and made judgements 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. that we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the annual financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;

f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

Compliance with Secretarial Standards

The Institute of Company Secretaries of India, a Statutory Body, has issued Secretarial Standards on Board and General Meetings. The Company has complied with all the applicable provisions of the Secretarial standards.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

During the year under review, the Company had not made any loans or given any guarantee. However, the Company had made investments in mutual fund, details of which are furnished in the Notes 11 to the Financial Statements.

EMPLOYEES'' SAFETY

The Company is continuously endeavouring to ensure safe working conditions for all its employees.

The Company attaches high importance to the Occupational health and safety systems to protect all its employees. The Company has taken mediclaim policy for all its employees and their dependent family members as also personal accident insurance of appropriate amounts for the employees at various levels.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has in place a Policy for Prohibition and Redressal of Sexual Harassment at work place which is in line with the requirements of the Sexual Harassment of women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder. All employees (permanent, contractual, temporary and trainees) are covered under this policy. The Company has constituted an Internal Complaint Committee for its Registered Office and Corporate Office under Section 4 of the captioned Act. No complaint has been filed before the said committee till date. The Company has filed an Annual Report with the concerned Authority.

DISCLOSURE UNDER RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL), RULES, 2014

A Statement containing details of disclosure as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014 is attached herewith as an ''Annexure E'' to this Report. PARTICULARS OF EMPLOYEES

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached herewith as an ''Annexure F'' to this Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with the Rule 8 (3) of the Companies (Accounts) Rules, 2014 is given as an ''Annexure G'' to this Report.

OTHER DISCLOSURES:

- There have been no material changes or commitments affecting the financial position of the Company which have occurred between the end of the financial year and the date of this report.

- There is no change in the nature of business.

- No Director is in receipt of any remuneration or commission from any of its subsidiaries, as the Company has no subsidiary Company.

- No relative of director was appointed to place of profit.

- As per Regulation 32(4) of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, deviation of proceeds of public issue is not applicable to the Company.

ACKNOWLEDGMENT

Your Directors would like to convey their deep appreciation for the co-operation received from employees, Company''s bankers, Customers and Government Authorities during the year under review. The Directors also place on record their appreciation for the confidence reposed by the shareholders.

For and on behalf of the Board of Directors

Place: Mumbai B. L. Kheruka

Date: June 18, 2018 Chairman

DIN-00016861

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Mar 31, 2017

Dear Members,

The Directors take pleasure in presenting the Twenty-Eighth Annual Report together with the Audited Financial Statements for the year ended March 31, 2017.

Financial Highlights

The highlights of the financial results of the Company for the financial year 2016-17 are as follows:

(Rs. in Lacs)

	Year Ended 31.03.2017	Year Ended 31.03.2016
Revenue from operations	18833	18830
Other Income*	723	128
Profit before finance cost, depreciation and tax	4786	3618
Finance Cost	1108	1061
Depreciation	1439	1367
Net Profit before tax	2239	1191
Provision for Taxation /MAT/Earlier year Tax	(3)	19
Provision for deferred tax liability /(Asset)	814	419
Other Comprehensive income	(17)	(9)
Total Comprehensive income	1412	745
Add: Balance brought forward from last year	(3209)	(3962)
Balance carried to Balance Sheet	(1781)	(3209)

*Other income includes refund of Rs.559.38 lacs towards revision in the rates of gas transportation charges for the period from November 2008 to March 2016 pursuant to recommendation made by the Petroleum and Natural Gas Regulatory Board.

DIVIDEND

Your Directors do not recommend any dividend for the year ended March 31, 2017 on both Equity and 9% Non-Cumulative Non-Convertible Redeemable Preference Shares, in view of carry forward losses and in order to conserve resources for the ongoing capital expenditure project.

SHARE CAPITAL

The paid up Share Capital comprises of 6,82,07,500 Equity shares of Rs.5/- each and 90,00,000 - 9% Non-Cumulative Non-Convertible Redeemable Preference shares of Rs.100/- each. The Preference Shareholder has acquired voting rights due to non-payment of dividend for two years. During the year under review, the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity.

PERFORMANCE

Revenue during the year under review remained flat at Rs.18,833 lacs (in spite of having good amount of sales orders in hand) as compared to Rs.18,830 lacs in the previous year owing to capacity constraint in tempering of solar glass.

During the year, there was higher utilization of production capacity for the manufacture of solar glass, whose sales grew by 20%. However, sales of pattern glass was lower by 46% partly owing to lower availability of production capacity as explained above, and partly owing to the major slowdown in the construction industry following demonetization of currency.

Exports during the year under review were somewhat lower at Rs.4,264 lacs as compared to Rs.4,942 lacs during the previous year. Directors are pleased to announce that your company has been awarded SPECIAL EXPORT AWARD by CAPEXIL for increase in exports in glass sector for the year 2014-15.

In spite of turnover remaining stagnant, profit before finance cost, depreciation and tax was at Rs.4,786 Lacs showing growth of 32% as compared to Rs.3,618 Lacs in the previous year. The improved working was achieved by attaining higher production efficiency and continuous efforts to reduce the production cost and in spite of pressure on selling prices due to cheap imports of dumped solar glass from China.

Profit before tax grew by 88% at Rs.2,239 lacs as compared to Rs 1,191 lacs in the previous year.

After pursuing the matter of inverted duty structure for 30 months with various Ministries, the Government of India finally levied 6% countervailing duty on import of solar glass and 6% excise duty on domestically produced solar tempered glass against submission of required forms/declarations by the buyers.

Your company has filed application for levying Anti-dumping duty against cheap subsidized imports from China. The case has been initiated realizing that prima facie there is a case and investigation is in progress. High Antidumping duties have been levied by EU against import of Solar tempered glass from China. Similarly there is an anti-dumping duty by USA against import of modules from China. Unless the Government acts decisively and imposes suitable levies on dumped imports, there will be no room for domestic production to grow.

To meet the demand for new products, the Company is in process of commissioning a state-of-the-art first of its kind tempering line which will be operational from 2^nd quarter of current financial year. The said tempering line will be capable of tempering thinner glass from 2 mm thickness to 3 mm also as against the minimum thickness of 3.2 mm onwards at present. There is a growing demand of Glass-to-glass modules which require fully tempered 2mm glass sheets in their manufacture. This emerging segment in the Photovoltaic solar market, is expected to grow multifold in near future. The Company will be one of the few companies in the world having achieved this distinction. With the commissioning of this new line, the Company’s tempering processing capacity is set to take a big leap to almost double compared to current capacity. This will allow the Company to meet growing demand for Solar Tempered glass and enable catering to surge demand.

Looking to the substantially high growth in Solar PV sector and consequent rising demand for solar glass, the Company is planning to set up a new furnace with tempering facility of 250 TPD at the existing location. The Company is in the process of arranging funds for the said project.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is mainly engaged in production of low iron solar glass for application in solar power sector. Solar PV market has faced tough times internationally in view of extraordinary capacity increase in China since 2011, resulting in flooding of solar glass by China in international market including India. The Government of India has been giving enormous momentum to the use of solar energy by setting a target of 100 gigawatt (GW) by the year 2022. Simultaneously, emphasis has been given to meet demands of power in irrigation sector by installing solar power pumps and by offering off-grid roof-top and standalone solar power solutions. These have started to materialize and are likely to rise sharply in the near future.

Year 2016 saw annual global installed capacity of solar glass reach over 77 GW, which represents a 34% year-on-year growth rate, building upon the 32% year-on-year growth rate enjoyed in 2015. This is for the first time since 2010-2011 that growth in demand for solar glass surpassed more than 30% for two consecutive years.

India’s solar market is poised to take up the mantle as one of the world’ s most energetic growing markets with 10 GW of new PV installations expected for the year 2017. Presently, India sits behind Japan as the world’s fourth-largest market, with annual projected demand of 5.8 GW compared to Japan’s 8.7 GW. With the projected growth, India would overtake Japan to become the world’s third-largest market of solar glass, after China and U.S.

The Company plans to produce limited quantity of patterned glass owing to expected increase in production of tempered solar glass from second quarter of 2017-18. This limited quantity of patterned glass in exclusive designs will be made for architectural applications to make available a superior product for shower cubicles, partitions and tabletops, etc. The Company has plans to continue to serve this segment in niche applications.

B. OPPORTUNITIES & THREATS

OPPORTUNITIES

- The Company is the only producer of solar glass in the Country and the product is well accepted. The Company is constantly evaluating to grow in this sector in domestic market and remain a dominant player. Its natural advantage of offering a shorter lead time to module manufacturers works favourably in helping it to secure business.

- Despite concerns about weak power demand growth and growing incidence of grid curtailment, solar power outlook in India remains very strong;

- 2017 will be a bumper year for the solar sector in India with total installed capacity reaching over 20 GW by the end of the year;

- Continuing reduction in module prices and downward trend in domestic interest rates will continue to provide strong ongoing demand impetus to the solar power market.

- The rooftop solar sector recently received approval from World bank for a global environmental facility (GEF) grant of US $ 22.93 Million to enhance installed capacity of grid connected rooftop solar (GRPV) and to strengthen the capacity of relevant institutions for widespread installations in India.

- Rooftop solar is expected to continue its spectacular growth trajectory in 2017. Around 1.1 GW of rooftop solar capacity is expected to be added in 2017, which is up by 75% from 2016, driven by capital subsidies and substantial demand from public sector.

- Patterned glass in exclusive designs is an attractive product. It is adding newer applications in the architectural glass segment and expects to keep growing in niche segments.

THREATS

- Government policies to provide solar power at cheapest price and the methods like reverse bidding for power projects is leading to compromise on quality and long term prospects. This is putting heavy pressure on the domestic manufacturers of components and forcing them to withhold their expansion plans due to low return on investment. Some indications of realization on this front started as is evident by the fact that many players have stayed out from the recent bidding process and raised their concerns on viability at prices considered absurdly low.

- Compared to 2015, imports of solar cells and modules into India in 2016 grew by 47%. China continues to be the single largest exporter of Cells and modules to India with a market share of 87%.

- PV module prices have declined by 10% in the last quarter and by 30% since the last year. Low component prices will be factored in future projects which will push the bidding prices further down and bring increased pressure on prices of components.

- China as the World’s largest PV glass producer accounts for roughly over 75% of the total capacity. In the beginning of 2016, Flat group invested 550 Million RMB in the construction of a PV glass manufacturing base in Vietnam to cater to South East Asian, Indian, European and Japanese customers. XINYI group has commissioned 900 Tons per day PV glass manufacturing plant in Malaysia in the beginning of 2017 to cater to Indian, European and South East Asian markets. Thus glass availability is increasing much faster and this could lead to subdued prices.

- Without an appropriate anti-dumping duty on solar glass, it is becoming impossible to compete with China due to heavy subsidies given by the Chinese Government. An early action by Government is the only way to provide fillip to domestic production of solar components/modules and generate employment in the country.

- There is a considerable time lag in approval of proposals to set up solar power plants despite policy push provided by the Government under JNNSM resulting in slower than expected growth in implementation. Moreover, banks are still hesitant to finance setting up of solar power farms as this industry is relatively new and in many cases the bidding has been done at artificially low prices thereby endangering viability. However, the solar water pump and Rooftop sectors are gaining good traction and growing very fast.

C. SEGMENTWISE OR PRODUCTWISE PERFORMANCE

The Company’s business activity falls within a single primary business segment viz. Manufacture of Flat glass. As such, there are no separate reportable segments as per Indian Accounting Standard 108.

D. OUTLOOK

The growth of solar energy in the Country has gained momentum which will require huge quantity of low iron glass. The Government plans to set up 100 GW of solar power plants by 2022. The action on the ground has speeded up and all the sectors i.e. Grid power, Rooftop and Solar water pumps are showing decent growth.

The solar energy produced will reduce pressure on natural resources besides being non-polluting and environment friendly and will lead to saving in Oil import bill and the sector has extremely good potential to grow.

E. RISK AND CONCERNS

The Company is exposed to normal industry risk factors of competition, economic cycle and uncertainties in the international and domestic markets.

The Government approvals for land and readiness of power distribution companies to evacuate power needs to be focused in order to achieve ambitious growth plans to produce solar energy. The continued pressure to quote lower prices for electricity in the biddings to get Government allocations is leading to lower prices for input/component manufacturers thereby making them vulnerable which will affect health of the Industry.

There are huge imports of Modules and Solar glass from China in view of overcapacity and lower international demand. This also reduces the demand for components as the ready modules are getting imported. The imports into India are duty free and thereby do not provide a conducive environment for taking up domestic production. This is hurting the solar glass industry even more than import of glass and is against the national interest from the angle of domestic industrialization, job creation and conservation of foreign exchange.

Realizing the need to have domestic production of components, the Government is now working on solutions and it is expected that a manufacturing policy for solar to develop entire eco-system will be the most important driver for growth in domestic production in this strategically important sector.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate Internal Control System commensurate with its size and nature of business. All transactions are properly authorized, recorded and reported to the management. The internal control systems are designed to ensure that the financial statements are prepared based on reliable information. The Internal Audit is continuously conducted by in house Internal Audit department of the Company and Internal Audit Reports are reviewed by the Audit Committee of the Board periodically.

G. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The operational performance during the year improved as record production of solar glass and sales was achieved. The selling prices for patterned glass improved. The EBIDTA margins improved to 24% as against 19% in the previous year. The improvement was led by higher production efficiencies and lower costs despite higher fuel/employees cost, non-availability of cenvat credit on inputs and decline in the selling prices for solar glass.

H. MATERIAL DEVELOPMENT IN HUMAN RESOURCES, INDUSTRIAL RELATION FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The industrial relations continued to be cordial.

Number of people employed as on 31^st March, 2017 were as under:

Staff : 227

Workers : 170 (Excluding contract labours)

The Company has effective HR systems to make the performance appraisals and working more transparent. Greater operational and financial details are shared with the management cadre with a view to having their deeper involvement and for development of human resources.

CORPORATE GOVERNANCE

As required by Regulation 34 read with schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Report on Corporate Governance is appended along-with a Certificate of Compliance from the Auditors.

DEPOSITS

The Company has not accepted any deposits and as such, no amount of principal or interest was outstanding on the date of the Balance Sheet.

SUBSIDIARY COMPANIES

The Company does not have any subsidiary Company.

The Company is associate company of two companies namely Borosil Glass Works Limited (BGWL) and Fennel Investment and Finance Private Limited by virtue of their holding of more than 20% of the equity share capital in the Company. BGWL’s voting rights in the Company is 79.46% of the total share capital (including preference share capital).

WHISTLE BLOWER POLICY / VIGIL MECHANISM

The Company has established a Whistle Blower (Vigil) Mechanism and formulated a Whistle Blower Policy to deal with instance of fraud and mismanagement. The details of the Policy is explained in the Corporate Governance Report, which form part of this Annual Report and also posted on the website of the Company at http://www. gujaratborosil.com/policies.html - click on Whistle Blower Policy.

BOARD OF DIRECTORS, ITS MEETINGS, EVALUATION ETC.

Board Meetings:

During the year, five Board Meetings and four Audit Committee Meetings were convened and held. The details of these are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

Appointment/ re-appointment:

As per the provisions of the Companies Act, 2013 and Articles of Association of the Company, Mr. B L Kheruka (DIN 00016861), Director of the Company will retire by rotation at the ensuing Annual General Meeting of the Company and being eligible offer himself for re-appointment. The Board recommends his appointment.

Brief details of the Director being reappointed have been incorporated in the Notice for the forthcoming Annual General Meeting.

There is no change in the composition of the Board of Directors and Key Managerial Personnel during the year under review, except as stated above.

Declaration by Independent Directors:

The Independent Directors have submitted the declaration of independence, as required pursuant to Section 149(7) of Companies Act, 2013, stating that they meet the Criteria of independence as provided in sub-section(6).

Company’s Policy on Directors Appointment and Remuneration etc.:

Under Section 178 of the Companies Act, 2013, the Company has prepared a policy on Director’s appointment and Remuneration. The Company has also laid down criteria for determining qualifications, positive attributes and independence of a Director. Policy relating to remuneration for the Directors, Key Managerial Personnel and Other employees is attached herewith as an ‘Annexure A’ to this Report.

Familiarization Programme for Independent Directors:

A Familiarization programme was prepared by the Company about roles, rights and responsibilities of Independent Directors in the Company, nature of industry in which the Company operates, business model of the Company, about Secretarial Standard-Board & General Meeting, SEBI (LODR) Regulations, 2015 etc., which was presented to Independent Directors on November 17, 2016. The details of the above programme are available on website of the Company at http://www.gujaratborosil.com/directors.html - click on Familiarization Programme for Independent Directors.

Formal Annual Evaluation:

In compliance with the Companies Act, 2013 and Regulations 17, 19 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the performance evaluation of the Board was carried out during the year under review.

The Formal Annual Evaluation has been made as follows:

1. The Company has laid down evaluation criteria separately for Board, Independent Directors, Directors other than Independent Directors and various committees of the Board. The criteria for evaluation of Directors (including the Chairman) included parameters such as willingness and commitment to fulfill duties, high professional ethics, contribution during meetings and timely disclosure of all the notice/details required under various provisions of laws. Based on such criteria, the evaluation was done in a structured manner through peer consultation & discussion.

2. Evaluation of the Board was made by a Separate Meeting of Independent Directors held under Chairmanship of Mr. Ashok Kumar Doda, Lead Independent director (without attendance of Non - Independent Director and members of management ) on 07^th March, 2017.

3. The performance evaluation of all committees namely:

1. Audit Committee

2. Nomination and Remuneration Committee

3. Corporate Social Responsibility Committee

4. Share Transfer Committee

were done by the Board of Directors at its meeting held on 07^th March, 2017.

However, performance evaluation of Stakeholders Relationship Committee was done on 03^rd May, 2017.

4. Performance evaluation of Non - Independent Directors namely Mr. B. L. Kheruka, Mr. P. K. Kheruka, Mr. Ashok Jain and Mr. Rajesh Chaudhary was done by Separate meeting of Independent Directors.

5. Evaluation of Independent Directors namely Mr. Shashi Kumar Mehra, Mr. Jagdish M. Joshi and Mr. Ashok Kumar Doda and Mrs. Shalini Kamath was done (excluding the Director who was evaluated) by the Board of Directors of the Company at its meeting held on 07^th March, 2017.

6. In addition, the Nomination and Remuneration Committee has carried out evaluation of every Director’s performance at its meeting held on 07^th March, 2017 as required under Section 178 (2) of Companies Act, 2013.

7. The Directors expressed their satisfaction with the evaluation process. Performance evaluation of Board/ Independent Directors/ Committees was found satisfactory.

KEY MANAGERIAL PERSONNEL

Key Managerial Personnel (KMP) of the Company under Section 203 of the Companies Act, 2013, are as follows:

SR NO.	NAME	DESIGNATION
1	Mr. Rajesh Chaudhary	Whole Time Director
2	Mr. Sunil Roongta	Chief Financial Officer
3	Mr. Kishor Talreja	Company Secretary

DEVELOPMENT AND IMPLENTATION OF RISK MANEGEMENT POLICY

The Company faces various risks in form of financial risk, operational risks etc. The Company understands that it needs to survive these risks in the market and hence have made a comprehensive policy on Risk Management.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As part of its initiatives under “Corporate Social Responsibility” (CSR), the Company has undertaken projects in the area of education which were in accordance with Schedule VII of the Companies Act, 2013.

During the year, the Company contributed ''10 lacs to Friends of Tribals Society, Mumbai, as a part of project being undertaken by them for imparting education in tribal areas under One Teacher School (OTS) called Ekal Vidyalaya’s and '' 5 lacs to Rotary Club of Bharuch for Mega Medico Surgical Camp in Bharuch, Gujarat, as a part of project being undertaken by them for preventive health care programme.

In terms of Section 135 of the Companies Act, 2013 and Rules made thereunder, the Company has constituted CSR committee comprising of the following members:

1. Mr. B. L. Kheruka-Chairman

2. Mr. P. K. Kheruka

3. Mr. Jagdish Joshi

out of which Mr. Jagdish Joshi is an Independent Director.

Company’s CSR Policy:

The Board of Directors of the Company has approved the CSR Policy as recommended by the CSR Committee and the same has been uploaded on the Company’s website at http://www.gujaratborosil.com/policies.html - click on CSR policy.

Initiatives taken by the Company during the year:

The 2% of the net profits of the Company during the immediate three preceding financial years amounts to Rs.22.52 lacs. The Company has contributed a sum of Rs.15 lacs during the year. An Annual Report on CSR activities in terms of Section 134(3) (o) of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility) Rules, 2014 is attached herewith as an ‘Annexure B’ to this Report.

Reason for non-spending balance CSR contribution:

The Company was looking for some useful avenue for making CSR contribution of the remaining amount. In this context, the Company has jointly with Borosil Glass Works Limited, Promoter Company and Hopewell Tableware Private Limited (HTPL), wholly owned subsidiary of BGWL has constituted a Trust namely - ‘Borosil Foundation’ with main object of making CSR contribution by the Company, BGWL and HTPL, from time to time. Further, the Company will contribute future CSR contribution through Borosil Foundation as and when said trust is fully operative, for some meaningful purposes. Since details are yet to be workout, balance contribution could not be made in the financial year 2016-17.

EXTRACT OF ANNUAL RETURN

Pursuant to section 92(3) of the Companies Act, 2013 (‘the Act’) and rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of annual return in form MGT 9 is attached as an ‘Annexure C’ to this Report.

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on an arm’s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC 2 is not applicable.

All Related Party Transactions are placed before the Audit Committee as also the Board for approval. The policy on Related Party Transactions as approved by the Board is uploaded on the Company’s website at http://www. gujaratborosil.com/policies.html - click on Related Party Transaction policy.

The details of the transactions with Related Party are provided in the accompanying financial statements.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations. Certain matters related to excise duty are pending before Court / Excise Authorities, outcome of which will impact financials of the Company.

POLLUTION CONTROL

The Company’s plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

AUDITORS: STATUTORY AUDITORS

Your Board recommends the ratification of appointment of M/s. Chaturvedi & Shah, Chartered Accountants, Mumbai (Firm Registration no.101720W), as Statutory Auditors of the Company at the ensuing AGM. M/s. Chaturvedi & Shah, Chartered Accountants have confirmed that their appointment, if made, shall be in accordance with the provisions of Section 139 and will satisfy the criteria as provided in Section 141 of the Companies Act, 2013 and Rules made there under.

COST AUDITORS AND COST AUDIT REPORT

Pursuant to section 148 of the Companies Act 2013 and Rules made there under, the Board of Directors on the recommendation of the Audit Committee appointed M/s. Kailash Sankhlecha & Associates, Cost Accountants, as the Cost Auditors of the Company for the financial year 2017-18 and has recommended their remuneration to the Shareholders for their ratification at the ensuing Annual General Meeting.

The Audit Committee has also received a certificate from the Cost Auditor certifying their independence and arm’s length relationship with the Company. Pursuant of Section 148(6) of the Companies Act, 2013 and Rules made there under, the Cost Audit Report for the financial year 2015-16 was filed with the Ministry of Corporate Affairs on 02^nd September, 2016 vide sRn no. G10473668.

SECRETARIAL AUDIT

In terms of Section 204 of the Act and Rules made there under, Mr. Virendra Bhatt, Practicing Company Secretary (CP no.124) has been appointed Secretarial Auditors of the Company. The report of the Secretarial Auditors is attached as an ‘Annexure D’ to this Report. The Secretarial Audit Report does not contain any qualification.

DIRECTORS’ RESPONSIBILITY STATEMENT

To the best of knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3) (c) of the Companies Act, 2013:

a. that in the preparation of the annual financial statements, the applicable Indian accounting standards have been followed and there were no departures;

b. that we have selected such accounting policies and applied them consistently and made judgements 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 profit of the Company for that period;

c. that we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. that the annual financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively;

f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Details of Loans, Guarantees and Investments are furnished in the Notes to the Financial Statements. During the year under review, Company has reduced its share of partnership in Swapan Properties LLP from 46% to 18%.

EMPLOYEES’ SAFETY

The Company is continuously endeavouring to ensure safe working conditions for all its employees.

The Company attaches high importance to the Occupational health and safety systems to protect all its employees. The Company has taken mediclaim policy for all its employees and their dependent family members as also personal accident insurance of appropriate amounts for the employees at various levels.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has in place a Policy for Prohibition and Redressal of Sexual Harassment at work place which is in line with the requirements of the Sexual Harassment of women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made there under. All employees (permanent, contractual, temporary and trainees) are covered under this policy. The Company has constituted an Internal Complaint Committee for its Registered Office and Corporate Office under Section 4 of the captioned Act. No complaint has been filed before the said committee till date. The Company has filed an Annual Report with the concerned Authority.

DISCLOSURE UNDER RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL), RULES, 2014

A Statement containing details of disclosure as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014 is attached herewith as an ‘Annexure E’ to this Report.

PARTICULARS OF EMPLOYEES

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached herewith as an ‘Annexure F’ to this Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with the Rule 8 (3) of the Companies (Accounts) Rules, 2014 is given as an ‘Annexure G’ to this Report.

ACKNOWLEDGMENT

Your Directors would like to convey their deep appreciation for the co-operation received from employees, Company’s bankers, Customers and Government Authorities during the year under review. Directors also place on record their appreciation for the confidence reposed by the shareholders.

For and on behalf of the Board of Directors

Place: Mumbai B. L. Kheruka

Date: May 03, 2017 Chairman

DIN-00016861

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Mar 31, 2015

Dear Members,

The Directors take pleasure in presenting the Twenty-Sixth Annual Report together with the Audited Financial Statements for the year ended March 31, 2015.

Financial Highlights

The highlights of the financial results of the Company for the financial year 2014-15 are as follows:

(Rs. in lacs) Year Ended Year Ended 31.03.2015 31.03.2014

Net revenue from operations 15192.40 13282.59

Profit/(Loss) before interest, depreciation and tax 2280.84 2724.03

Interest 192.06 292.05

Depreciation 1297.34 1617.71

Net Profit/(loss) before tax and exceptional items 791.44 814.27

Exceptional items- Income/(Expenditure) (569.25) 472.92

Provision for Taxation 0.35 0.37

Income Tax for earlier years (net) - 41.38

Provision for deferred tax liability /(Asset) created 68.94 416.80

Profit/(loss) after tax 152.90 828.64

Add: Balance brought forward from last year (1592.11) (2420.75)

Add: Adjustment of Depreciation (Refer note 33 - to Accounts) (38.29) -

Balance carried to the Balance Sheet (1477.50) (1592.11)

DIVIDEND

Your Directors do not recommend any dividend for the year ended March 31, 2015 on both Equity and 9% Cumulative Non-Convertible Redeemable Preference Shares, in view of insufficient profit during the year and accumulated losses.

SHARE CAPITAL

The paid up Share Capital comprises of 6,82,07,500 Equity shares of Rs.5/- each and 90,00,000 - 9% Cumulative Non- Convertible Redeemable Preference shares of Rs.100/- each. The Preference Shareholder has acquired voting rights due to non-payment of dividend for two years. The Company has requested holders of Preference shares, Borosil Glass Works Limited to vary the nature of said preference shares from cumulative to non-cumulative, which has been approved by them and is being placed for approval of equity shareholders of our Company.

During the year under review, the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity. As on March 31, 2015, none of the Directors of the Company hold shares or convertible instruments of the Company.

PERFORMANCE

The company successfully introduced its new product, solar glass with Anti-reflective coating, which resulted in increasing overall sales revenue and volume, as more and more customers, both domestic and international, switched over to this product. The sales prices for this product are naturally higher than for uncoated glass. The selling prices for Patterned glass improved. The net sales grew from Rs. 13283 lacs to Rs. 15192 lacs.

Profit before interest, depreciation and tax as a percentage of net revenue was 15% (before making provision of Rs 569.25 lacs for doubtful export debts) as compared to 20.5% in the previous year. The drop is attributed to increased pressure on prices due to cheap imports of dumped solar glass from China, as well as inordinate rise in fuel and other costs which could not be passed on to customers. The working results show a Profit before tax of

Rs 791.44 lacs (before making provision for doubtful export debts of Rs 569.25 lacs) as compared to Rs 814.27 lacs in the previous year.

In September 2014 gas supplies were abruptly cut by over 50% for some consumers in South Gujarat, including your company, who were obliged to pay exorbitantly higher prices for alternate fuel to meet the demand gap. In November 2014, prices were raised for even the remaining gas which the company was getting. This led to significant hike in power and fuel cost for the company, which could not be passed on in higher prices of Solar Glass due to fierce competition from cheap Chinese imports.

In the budget of July 2014, excise was removed on solar tempered glass against submission of required forms/declarations by the buyers. However, despite repeated promises by the Finance Minister in Parliament, Excise/CVD continues to be levied till today on the inputs for Solar glass thus continuing with the inverted duty structure, whereas imports of solar glass are completely exempt from all kinds of duty, domestically made solar glass suffers duty on its inputs. Inability to avail credit for inputs inevitably increases cost of our product.

Imposition of anti-dumping duty by (European Union) EU on imports of Chinese solar glass allowed prices there to normalize, and helped promote exports of our glass to that market.

The Company has been focusing mainly on the domestic market. However there has been surge in cheap imports in India from China after EU imposed Anti-Dumping Duty on import of solar glass from China. This has led to pressure on domestic prices and margins have eroded further. The matter has been taken up with Ministry for New and Renewable Energy to either impose at least a basic import duty to provide a level playing field to the domestic industry or include Solar glass within the definition of domestic content in the projects being set up by the government with domestic content requirement (DCR). Unfortunately, the Government has been dragging its feet on both the fronts though they verbally sympathize with us and have advised manufacturers to buy Solar glass from local sources in view of a very insignificant impact on the cost of setting up a project.

Dispute with an international customer continued. The Company had been successful in obtaining attachment order on personal properties of directors holding them personally liable. However this decision was overturned by the appeal court which held that there was no personal liability of Directors. Soon after this, the customer filed for bankruptcy and liquidator has been appointed. The civil suit filed by the company has been recently heard by the court only on the subject of personal liability, since another court is monitoring the bankruptcy issue. The judgment of court is awaited. On meeting the liquidator it was discovered that there are secured lenders of sizable amount and recovery if any would first go to pay their dues. In view of these developments the chances of receiving any amount look extremely difficult. Accordingly, provision for the entire amount, net of the claims negotiated earlier and provided for, has been made in the accounts.

CORPORATE GOVERNANCE REPORT

As per Clause 49 of the listing agreement with the Stock Exchange, a separate section on Corporate Governance practices followed by the Company, together with a certificate from the Company's Auditors confirming compliance forms an integral part of this Report.

DEPOSITS

The Company has not accepted any deposits and as such, no amount of principal or interest was outstanding on the date of the Balance Sheet.

SUBSIDIARY COMPANIES

The Company does not have any subsidiary Company.

The Company is associate company of two companies namely Borosil Glass Works Limited (BGW's) and Fennel Investment and Finance Private Limited by virtue of their holding of more than 20% of the equity share capital in the Company. BGW's voting rights in the company is 79.46% of the total voting share capital (including preference share Capital).

WHISTLE BLOWER POLICY / VIGIL MECHANISM

The Company has established a Whistle Blower (Vigil) Mechanism and formulated a Whistle Blower Policy to deal with instance of fraud and mismanagement. The details of the Policy is explained in the Corporate Governance Report, which form part of this Annual Report and also posted on the website of the Company at http://www.gujaratborosil.com/policies.html - click on Whistle Blower Policy

BOARD OF DIRECTORS, ITS MEETINGS, EVALUATION ETC.

Board Meetings:

During the year, six Board Meetings and four Audit Committee Meetings were convened and held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

Appointment of Independent Directors:

The Company has in the last Annual General Meeting held on August 08, 2014 appointed three Independent Directors in the Company namely Mr. Shashi Kumar Mehra (DIN 00032134), Mr. Jagdish M. Joshi (DIN 00276041) and Mr. Ashok Kumar Doda (00288563) for a period of five years i.e. upto 31st March, 2019 under the Companies Act, 2013.

The Board of Directors appointed Mrs. Shalini Kamath (DIN 06993314) as Additional Director of the Company with effect from November 03, 2014. She holds office upto the date of ensuing Annual General Meeting of the Company. The Company has received a notice as per the provisions of Section 160(1) of the Companies Act, 2013, from a member proposing her appointment as Director. The Board of Directors recommends her appointment as Independent Directors for five consecutive years for a term upto March 31, 2020.

Brief details of the Directors being appointed / reappointed have been incorporated in the Notice for the forthcoming Annual General Meeting.

Declaration by Independent Directors:

The Independent Directors have submitted the declaration of independence, as required pursuant to Section 149(7) of Companies Act, 2013, stating that they meet the Criteria of independence as provided in sub-section ( 6).

Retirement by Rotation:

As per the provisions of the Companies Act, 2013 and Articles of Association of the Company, Mr. P K Kheruka (DIN 00016909), Director of the Company will retire by rotation at the ensuing Annual General Meeting of the Company and being eligible offer himself for re-appointment. The Board recommends his appointment.

Company's Policy on Directors Appointment and Remuneration etc.:

Under Section 178 of the Companies Act, 2013, the Company has prepared a policy on Director's appointment and Remuneration. The Company has also laid down criteria for determining qualifications, positive attributes and independence of a Director.

Familiarization Programme for Independent Directors:

A Familiarization programme was prepared by the Company about roles, rights and responsibilities of Independent Directors in the Company, nature of industry in which the Company operates, business model of the Company, etc., which was presented to Independent Directors on 3rd November, 2014. The details of the above programme are available on website of the Company at http://www.gujaratborosil.com/directors.html - click on Familiarization Programme for Independent Directors

Formal Annual Evaluation:

In compliance with the Companies Act, 2013 and Clause 49 of the Listing agreement, the performance evaluation of the Board was carried out during the year under review.

The Formal Annual Evaluation has been made as follows:

1. The Company has laid down evaluation criteria separately for Board, Independent Directors, Directors other than Independent Directors and various committees of the Board. The criteria for evaluation of Directors (including the Chairman) included parameters such as willingness and commitment to fulfill duties ,high professional of ethics, contribution during meetings and timely disclosure of all the notice/details required under various provisions of laws. Based on such criteria, the evaluation was done in a structured manner through peer consultation & discussion.

2. Evaluation of the Board was made by a Separate Meeting of Independent Directors held under Chairmanship of Mr. Ashok Kumar Doda, Lead Independent director (without attendance of non - Independent Director and members of management ) on 5th March, 2015.

3. The performance evaluation of all committees namely:

1. Audit Committee

2. Nomination and Remuneration Committee

3. Corporate Social Responsibility Committee

4. Share Transfer Committee

were done by the Board of Directors at its meeting held on 5th March, 2015.

However, performance evaluation of Stakeholders Relationship Committee was done on May 18, 2015.

4. Performance evaluation of non - Independent Directors namely Mr. B.L. Kheruka, Mr. P.K. Kheruka and Mr. Ashok Jain was done by Separate meeting of Independent Directors.

5. Evaluation of Independent Directors namely Mr. Shashi Kumar Mehra, Mr. Jagdish M. Joshi and Mr. Ashok Kumar Doda and Mrs. Shalini Kamath was done (excluding the Director who was evaluated) by the Board of Directors of the Company at its meeting held on 5th March, 2015.

6. In addition, the Nomination and Remuneration Committee has carried out evaluation of every Director's performance at its meeting held on 5th March, 2015 as required under Section 178 (2) of Companies Act, 2013.

7. The Directors expressed their satisfaction with the evaluation process.

KEY MANAGERIAL PERSONNEL

Mr. Ashok Jain who was already Whole Time Director of the Company and Mr. Kishor Talreja who was working as the Company Secretary were designated as Key Managerial Personnel (KMP) of the Company under Section 203 of the Companies Act, 2013, in their respective positions.

Further, during the year, Mr. Sunil Roongta, Chief Financial Officer of the Company was designated as Key Managerial Personnel, under the above mentioned provisions of the Companies Act, 2013.

DEVELOPMENT AND IMPLENTATION OF RISK MANEGEMENT POLICY

The Company faces various risks in form of financial risk, operational risks etc. The Company understands that it needs to survive these risks in the market and hence have made a comprehensive policy on Risk Management.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In terms of Section 135 of the Companies Act, 2013 and Rules made thereunder, the Company has constituted CSR committee comprising of the following members:

1. Mr. B.L. Kheruka

2. Mr. P K Kheruka

3. Mr. Jagdish Joshi

out of which Mr. Jagdish Joshi is Independent Director.

Company's CSR Policy:

The Board of Directors of the Company has approved the CSR Policy as recommended by the CSR Committee and the same has been uploaded on the Company's website at http://www.gujaratborosil.com/policies.html - click on CSR policy.

Initiatives taken by the Company during the year:

The Board at its meeting held on January 30, 2015 noted that since, the average Net profit of the Company for immediately preceding 3 years is negative; the Company is statutorily not required to contribute any amount towards CSR for the financial year 2014-15. The Company has not undertaken any CSR activities during the year under review.

EXTRACT OF ANNUAL RETURN

Pursuant to section 92(3) of the Companies Act, 2013 ('the Act') and rule 12(1) of the Companies (Management and Administration) Rules, 2014, extract of annual return in form MGT 9 is attached as an 'Annexure A' to this Report.

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

All Related Party Transactions are placed before the Audit Committee as also the Board for approval. The policy on Related Party Transactions as approved by the Board is uploaded on the Company's website at http://www.gujaratborosil.com/policies.html - click on Related Party Transaction policy

The details of the transactions with Related Party are provided in the accompanying financial statements.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations. Certain matters related to excise duty are pending before court / excise authorities, outcome of which will impact financials of the Company.

POLLUTION CONTROL

The Company's plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

AUDITORS:

STATUTORY AUDITORS

M/s. Singhi & Company, Chartered Accountants, Statutory Auditors of the Company (FRN 110283W) will retire at the ensuing Annual General Meeting and are eligible for re-appointment. M/s. Singhi & Company, Chartered Accountants, have confirmed that their re-appointment, if made, shall be in accordance with the provisions of Section 139 and will satisfy the criretia as provided in Section 141 of the Companies Act, 2013.

The Board recommends their re-appointment as Statutory Auditors and to fix their remuneration for the financial year 2015-16.

COST AUDITORS AND COST AUDIT REPORT

Pursuant to The Companies (Cost Audit Report) Rules, 2011, the Cost Audit Report for the financial year 2013-14 was filed on 22/09/2014 vide SRN No.S31280035 (Within Prescribed time limit of 27/09/2014) with the Ministry of Corporate Affairs. The Audit Committee has also received a Certificate from the Cost Auditor certifying their independence and arm's length relationship with the Company.

The Ministry of Corporate Affairs (MCA) vide its Notification dated 30/06/2014 issued the Companies (Cost Records and Audit) Rules, 2014 under the Companies Act, 2013 in supersession of all the earlier Cost Records and Audit Rules. As per Rule 3, of the said Rules, the maintenance of Cost Records was not applicable to the Company. Therefore, the Company was not required to maintain Cost records or to appoint Cost Auditors for the financial year 2014-15 and hence no remuneration was paid to the Cost Auditor.

Later on, however, the Ministry of Corporate Affairs (MCA) vide its Notification dated 31/12/2014 amended the Companies (Cost Records and Audit) Rules, 2014. As per the amended Rule 3, Company is again required to maintain Cost Records for the financial year commencing on or after 1st April, 2015, as Company is covered under serial no.30 (Glass industry) of item (B) - Non-regulated sector.

Pursuant to section 148 of the Companies Act, 2013, the Board of Directors on the recommendation of the Audit Committee appointed M/s. Kailash Sankhlecha & Associates, Cost Accountant, as the Cost Auditors of the Company for the Financial year 2015-16. M/s. Kailash Sankhlecha & Associates have confirmed that their appointment is within the limits of the Section 141 (3) (g) read with section 148 (3) of the Companies Act, 2013 and have also certified that they are free from any disqualifications specified under section 148 (5) read with Section 141 sub section (3) of the Companies Act, 2013.

SECRETARIAL AUDIT

In terms of Section 204 of the Act and Rules made there under, M/s. Virendra Bhatt, Practicing Company Secretary (CP no.124) has been appointed Secretarial Auditors of the Company. The report of the Secretarial Auditors is attached as an 'Annexure B' to this Report. The Secretarial Audit Report does not contain any qualification.

DIRECTORS' RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3)(c) of the Companies Act, 2013:

a. that in the preparation of the annual financial statements, the applicable accounting standards have been followed and there were no material departures.

b. that we have selected such accounting policies and applied them consistently and made judgements 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 loss of the Company for that period.

c. that we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d. that the annual financial statements have been prepared on a going concern basis.

e. that proper internal financial controls were in place and that the financial controls were adequate and were operating effectively.

f. that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Details of Loans, Guarantees and Investments are furnished in the Notes to the Financial Statements.

EMPLOYEES' SAFETY

The Company is continuously endeavoring to ensure safe working conditions for all its employees.

The Company attaches high importance to the Occupational health and safety systems to protect all its employees. The Company has taken mediclaim policy for all its employees and their dependent family members as also personal accident insurance of appropriate amounts for the employees at various levels.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has in place a Policy for Prohibition and Redressal of Sexual Harassment at work place which is in line with the requirements of the Sexual Harassment of women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules made thereunder. All employees (permanent, contractual, temporary and trainees) are covered under this policy. The Company has constituted an Internal Complaint Committee for its Head Office and branches/sales offices under Section 4 of the captioned Act. No complaint has been filed before the said committee till date. The Company has filed an Annual Report with the concerned Authority.

DISCLOSURE UNDER RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL), RULES, 2014

A Statement containing details of disclosure as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014 is attached herewith as an 'Annexure C' to this Report.

PARTICULARS OF EMPLOYEES

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not applicable to the Company as there was no employee drawing remuneration to the extent mentioned therein.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with the Rule 8 (3) of the Companies (Accounts) Rules, 2014 is given as an 'Annexure D' to this Report.

ACKNOWLEDGMENT

Your Directors would like to convey their deep appreciation for the co-operation received from employees, Company's bankers, Customers and Government Authorities during the year under review. Directors also place on record their appreciation for the confidence reposed by the shareholders.

For and on behalf of the Board of Directors

Place: Mumbai B. L. Kheruka Date : May 18, 2015 Chairman

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Mar 31, 2013

Dear Members,

The Directors present the Twenty-Fourth Annual Report with the audited statements of accounts of the Company for the financial year ended March 31, 2013.

Financial Highlights

The highlights of the financial results of the Company for the financial year 2012-13 are as follows:

(Rs.in Lacs)

Year Ended Year Ended 31.03.2013 31.03.2012

Net revenue from operations 9553.19 7909.50

Profit/(Loss) before interest, depreciation and tax 617.31 (575.34)

Interest 343.71 1155.41

Depreciation 1486.94 1390.10

Net Profit/(loss) before tax (1213.34) (3120.85)

Provision for Taxation 0.25 0.25

Income Tax for earlier years (net) 0 56.86

Provision for deferred tax liability /(Asset) created (414.56) (1066.04)

Profit/(loss) after tax (799.03) (2111.92)

Add: Balance brought forward from last year (1621.72) 30.20

Add: Set off of loss from General Reserve 0 460.00

Balance carried to the Balance Sheet (2420.75) (1621.72)

DIVIDEND

Your Directors do not recommend any dividend for the year ended March 31, 2013 on both Equity and 9% Cumulative Non-Convertible Redeemable Preference Shares, in view of loss incurred during the year.

PERFORMANCE

Sheet Glass

The furnace was cooled down on 28th July, 2010 and it was decided not to renew the same for making sheet glass.

The surplus workmen of the sheet glass plant had disputed the Company''s decision to go for partial closure against which the Company had filed appeal before the Gujarat High Court. In the meanwhile, the said workmen have been absorbed in the Solar Glass operations and Company has since withdrawn the appeal. A settlement with the recognized Workers union has been signed in March 2013.

Solar Glass

The Solar glass market worldwide continues to remain sluggish since March 2011 and the prices of modules and components are very low. Consequently, the prices of solar glass also are low and there is overcapacity in international market. The company started focusing on the domestic market and is now supplying to almost all the Indian consumers of solar glass. However the domestic market also remained uncertain after March 2012 and the company had to rethink its strategy. In September 2012 the Company introduced Patterned glass for Architectural applications and has gradually added new designs. The experience to produce patterned glass led to significant improvement on operations and even solar glass production could be increased substantially with economies in consumptions and costs.

One of the major international customer who had bought lot of glass until December 2011, but due to drop in prices and quality had held back payments, on the pretext of claims. Finally after examining all the claims and protracted negotiations through discussions, a settlement was drafted. However, the customer did not sign the settlement and offered delayed payment schedules and wanted to leave the settlement open ended which was not agreed to. Finally a case has been filed in Court at Netherlands for recovery. Provision has been made in accounts for 2011-12 for the amount agreed to be allowed as discounts/claims and the amount recoverable has been shown as doubtful in 2012-13.

DIRECTORS

As per the provisions of the Companies Act, 1956 and Articles of Association of the Company, Mr. Shashi Mehra and Mr. Jagdish Joshi, Directors of the Company retire by rotation and being eligible offer themself for re-appointment.

Brief details of the Directors being appointed / reappointed have been incorporated in the Notice for the forthcoming Annual General Meeting.

CORPORATE GOVERNANCE REPORT

A separate section on Corporate Governance is included in the Annual Report and the Certificate from Company''s auditors confirming the compliance with the code of Corporate Governance as enumerated in Clause 49 of the listing agreement with the Stock Exchange is annexed hereto.

The Board of Directors of the Company has evolved and adopted a Code of Conduct and posted the same on the Company''s website www.gujaratborosil.com. The Directors and Senior Management personnel have affirmed their compliance with the code for the year ended 31st March, 2013.

DEPOSITS

The Company has not accepted any deposits and as such, no amount of principal or interest was outstanding on the date of the Balance Sheet.

POLLUTION CONTROL

The Company''s plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

AUDITORS:

STATUTORY AUDITORS

M/s. Singhi & Company, Chartered Accountants, Statutory Auditors of the Company (FRN 110283W) will retire at the ensuing Annual General Meeting and are eligible for re-appointment. M/s. Singhi & Company, Chartered Accountants, have confirmed that their re-appointment, if made, shall be within the limits of Section 224(1B) of the Companies Act, 1956.

The Board recommends their re-appointment as Statutory Auditors and to fix their remuneration.

COST AUDITORS AND COST AUDIT REPORT

Pursuant to section 233B (2) of the Companies Act, 1956, the Board of Directors on the recommendation of the Audit Committee appointed M/s. Kailash Sankhlecha & Associates, Cost Accountant, as the Cost Auditors of the Company for the Financial year 2013-14. M/s. Kailash Sankhlecha & Associates have confirmed that their appointment is within the limits of the Section 224 (1B) of the Companies Act, 1956 and have also certified that they are free from any disqualifications specified under section 233B(5) read with Section 224 sub section (3) and sub-section (4) of Section 226 of the Companies Act, 1956.

The Audit Committee has also received a Certificate from the Cost Auditor Certifying their independence and arm''s length relationship with the Company. Pursuant to The Companies (Cost Audit Report) Rules, 2011, the Cost Audit Report for the financial year 2011-12 was filed on 28/02/2013 vide SRN No.S20426086 with the Ministry of Corporate Affairs.

DIRECTORS'' RESPONSIBILITY STATEMENT

Subject to disclosures in the Annual accounts and also on the basis of the discussion with the Statutory Auditors of the Company from time to time, the Board of Directors state as under:

i) that in the preparation of the annual accounts, the applicable accounting standards have been followed and there were no material departures.

ii) that we have selected such accounting policies and applied them consistently and made judgements 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 loss of the Company for that period.

iii) that we 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) that we have prepared the annual accounts on a going concern basis.

PARTICULARS OF EMPLOYEES

Statement pursuant to Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not applicable to the Company as there was no employee drawing remuneration to the extent mentioned therein.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 217(1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is given in the Annexure to the Directors'' Report.

ACKNOWLEDGMENT

Your Directors would like to convey their deep appreciation for the co-operation received from employees, Company''s bankers, Customers and Government Authorities during the year under review. Directors also place on record their appreciation for the confidence reposed by the shareholders.

For and on behalf of the Board of Directors

Place : Mumbai B. L. Kheruka

Date:9th May, 2013 Chairman

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Mar 31, 2012

To The Members of Gujarat Borosil Limited

The Directors are pleased to present their Twenty-Third Report and Audited Statement of Accounts for the year ended 31st March, 2012.

FINANCIAL RESULTS

The financial results for the year ended 31st March, 2012 are given below :

(Rs in Lacs)

Year Ended Year Ended 31.03.2012 31.03.2011

Net revenue from operations . 7909.50 9266.46

Profit/(Loss) before interest, depreciation and tax (575.34) (614.57)

Interest 1155.41 810.62

Depreciation 1390.10 1325.86

Net Profit/(loss) before tax (3120.85) (2751.05)

Provision for Taxation (Net) 0.25 0.30 Income Tax for earlier years (net) 56.86 89.13

Provision for deferred tax liability /(Asset) created (1066.04) (948.96)

Profit/(loss) after tax (2111.92) (1891.52)

Add: Balance brought forward from last year 30.20 1921.72

Add: Set off of loss from General Reserve 460.00 -

Balance carried to the Balance Sheet (1621.72) 30.20

DIVIDEND

Your Directors do not recommend any dividend for the year ended 31st March, 2012 in view of loss incurred during the year.

PERFORMANCE Sheet Glass

The furnace was cooled down on 28th July, 2010 and it was decided not to renew the same for making sheet glass. Net revenue from operations for 2010-11 included Rs 2639.38 lacs (Nil in 2011-12) on account of sale of sheet glass.

The surplus workmen of this plant have disputed the Company's decision to go for partial closure and Company's appeal is pending for decision by the Gujarat High Court. In the meanwhile, the overheads of this plant continue which affected the overall performance.

Solar Glass

The Low Iron Solar Glass Furnace of the Company first of its kind in the country was successfully commissioned last year on 16th March, 2010.

The Solar glass market worldwide has gone through upheavals in the last 15 months and the prices of modules and components have all crashed. The solar glass prices too crashed by almost 35% compared to 2010-11 thereby not only eroding the margins completely but also causing huge losses. Similar trend persisted in the domestic market also.

On the other hand, one of the major buyers who bought glass in huge quantities in 2010-11 did not use the glass and later raised claims on account of price drop as also quality. The customer withheld payments. Finally after examining all the claims and protracted negotiations through discussions the claim has been settled which caused additional losses to the Company.

The top 3 solar module markets i.e. Germany, Italy and Spain continue with slow down leading to closure of many units across the globe. The steps announced in the first quarter of 2011-12 by Italian Government were found short in stabilization of the solar market. The overcapacity has further gone up in view of new facilities commissioned in 2011-12 particularly in China. The demand is slightly up but the selling prices remain under pressure due to overcapacity. The company has been focusing on the domestic market and rs now supplying to almost all the Indian consumers of solar glass. The production improvements made over last one year have led to improvement in quality of both Annealed and Tempered Glass and the company has seen no significant further claims on'the supplies made in 2011-12.

The company is taking a series of steps to increase tempering production, further strengthen quality checks and reduce costs which will arrest the losses and improve working from the 2nd quarter onwards.

DIRECTORS

The Board of Directors of the Company appointed Mr. Raj Kumar Jain as an Alternate Director to Mr. Jagdish Joshi during the later's stay abroad and Mr Jain held office from 10th May, 2011 to 22nd June, 2011.

Mr. Ashok Jain and Mr. Ashok Kumar Doda retire by rotation and being eligible offer themselves for re-appointment.

Brief details of the Directors being appointed / reappointed have been incorporated in the Notice for the forthcoming Annual General Meeting.

ISSUE OF PREFERENCE SHARES & INCREASE IN AUTHORISED CAPITAL

In order to reduce its debt liability, during the year, the Company issued fresh Capital by way of issue of 90,00,000 - 9% Cumulative Non-Convertible Redeemable Preference Shares of Rs 100/- each, at par, through private placement, to the Promoter Company, Borosil Glass Works Limited for a sum of Rs 90 crores. In order to do so, the Authorised Capital was increased from Rs 50 Crores to t 140 Crores by creating 90,00,000 Preference Shares of Rs 100/- each. Since privately placed, the said Preference Shares are not listed on any Stock Exchange.

The Company has used the entire funds raised by issue of aforesaid Preference Shares in repayment of inter-corporate deposits/ loans as per stated objects of the said Issue. The Audit Committee of Board of Directors of the Company has taken note of the said utilization of funds as aforesaid.

CORPORATE GOVERNANCE REPORT

A separate section on Corporate Governance is included in the Annual Report and the Certificate from Company's auditors confirming the compliance with the code of Corporate Governance as enumerated in Clause 49 of the listing agreement with the Stock Exchange is annexed hereto.

The Board of Directors of the Company has evolved and adopted a Code of Conduct and posted the same on the Company's website www.gujaratborosil.com. The Directors and Senior Management personnel have affirmed their compliance with the code for the year ended 31st March, 2012.

DEPOSITS

Your Company has not accepted any deposits from Public till date.

POLLUTION CONTROL ,

The Company's plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

AUDITORS

M/s. Singhi & Company, Chartered Accountants, will retire as Auditors of the Company at the conclusion of the ensuing Annual General Meeting and being eligible have expressed their willingness for re-appointment. As per provisions under Section 224(1-B) of the Companies Act, 1956, a written certificate has been obtained by the Company from the Auditors stating that if they are re-appointed as Auditors of the Company, such re- appointment would be within the limits specified in Section 224(1-B) of the Companies Act, 1956.

COST AUDITOR ANDCOST AUDIT REPORT

Pursuant to Section 233B(2) of the Companies Act, 1956 read with Order F.NO.52/26/CAB-2010 dated 30th June, 2011 issued by the Ministry of Corporate Affairs, the Board of Directors on the recommendation of the Audit Committee had appointed M/s. Kailash Sankhlecha & Associates, Cost Accountant, 414, Saffron Complex, opp. Indian Airlines Office, Fatehgunj, Vadodara - 390 002, as Cost auditor of the Company for the Financial Year 2011-12 and again on recommendation of Audit Committee, the Board of Directors at their meeting held on 24th May, 2012, has, subject to approval of Central Government, re-appointed, M/s. Kailash Sankhlecha & Associates as Cost Auditor for the Financial Year 2012-13.

M/s. Kailash Sankhlecha & Associates has confirmed that their appointment, is within the limits of the Section 224 (1B) of the Companies Act, 1956 and has also certified that they are free from any disqualifications specified under section 233B(5) read with Section 224 sub section (3) and sub-section

(4) of Section 226 of the Companies Act, 1956. The Audit Committee has also received a Certificate from the Cost Auditor certifying their independence and arm's length relationship with the Company.

Pursuant to The Companies (Cost Audit Report) Rules, 2011, the Cost Audit Report for the financial year 2011-12 shall become due for filing with the Central Government on 30th September, 2012. This report is under process and will be filed before due date. Further, as filing of said report was made mandatory to the glass industry only from 1st April, 2011, there was no requirement to file Cost Audit Report in respect of previous year.

DIRECTORS' RESPONSIBILITY STATEMENT

Subject to disclosures in the Annual accounts and also on the basis of the discussion with the Statutory Auditors of the Company from time to time, the Board of Directors state as under:

i) that in the preparation of the annual accounts, the applicable accounting standards have been followed and there were no material departures.

ii) that we have selected such accounting policies and applied them consistently and made judgements 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 or loss of the Company for that period.

iii) that we 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) that we have prepared the annual accounts on a going concern basis.

PARTICULARS OF EMPLOYEES

There was no employee drawing remuneration to the extent as required to be disclosed under Section 217(2A) of the Companies Act, 1956 and rules thereunder, as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are furnished in the Annexure to the Report.

ACKNOWLEDGMENT

Your Directors would like to express their deep appreciation for the co-operation received from employees and Company's bankers during the year under review. Directors also place on record their appreciation for the confidence reposed by the shareholders. .

For and on behalf of the Board of Directors

Place : Mumbai B.L.Kheruka

Date : 24th May, 2012 Chairman

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Mar 31, 2011

The Members of

Gujarat Borosil Limited

The Directors are pleased to present their Twenty Second Report and Audited Statement of Accounts for the year ended 31st March, 2011.

FINANCIAL RESULTS

The financial results for the year ended 31st March, 2011 are given below :

(Rupees in Lacs) Year Ended Year Ended 31.03.2011 31.03.2010

Gross Sales (including Excise Duty) 8526.33 8773.20

Profit/(Loss) before interest, depreciation and tax (614.57) 483.11

Interest 810.62 66.43

Depreciation 1325.86 554.93

Net Profit/(loss) before tax (2751.05) (138.25)

Provision for Taxation (Net) 0.30 0.36

Income Tax for earlier years (net) 89.13 —

Provision for deferred tax liability/ (Asset) created (948.96) (41.81)

Profit/(loss) after tax (1891.52) (96.80)

Add: Balance brought forward from last year 1921.72 2018.52

Available for appropriation 30.20 1921.72

Appropriation:

Transferred to General Reserve — —

Balance carried to the Balance Sheet 30.20 1921.72

DIVIDEND

Your Directors do not recommend any dividend for the year ended 31st March, 2011 in view of loss incurred during the year.

PERFORMANCE

Sheet Glass

The furnace was cooled down on 28th July, 2010 in 16th year of its continuous operation and it was decided not to renew the same for making sheet glass due to falling demand for sheet glass on account of abundant supply of float glass in the country which led to inadequate margins.

Voluntary retirement scheme was introduced by Company for the affected workmen which was opted by 26 persons. It has since been decided to go for partial closure of this plant for which process is under progress. For the remaining affected workmen the matter is before labour commissioner. The overheads of this plant however continued which affected the overall performance.

Solar Glass

The Low Iron Solar Glass Furnace was successfully commissioned on 16th March, 2010. Inspite of it being the first project of its kind in India, the company was able to prove the quality of the glass within,a very short time frame. In fact, the company received the highest U1 rating for Transmission of Energy from the prestigious SPF institute based in Rapperswill, Switzerland. This established the intrinsic quality of the Company's solar glass as amongst the best in the world.

Glass for solar photo voltaic(PV) applications is an engineered product, used as a component in the total assembly. The PV panels must be guaranteed for 25 years. They are subjected to very rigorous testing in internationally certified laboratories in USA and Europe, before they can be sold. Once a panel has been approved by such a laboratory, not a single component can be changed. As such, they are extremely particular about each and every component which is used in their panel. Whereas there were printed specifications to which the glass must adhere, we discovered after starting production that there were numerous additional specifications against which the users measured the glass, but which were not written down anywhere. Most of these were cosmetic, and of no relevance to the intended use of the panel, which is on a rooftop away from anyone's gaze. However, if the buyer rejected the glass, there was little that could be done. Time and again, we would learn of the rejection of a consignment for a cosmetic reason which had never even been mentioned as a requirement in the purchase order.

Secondly, the approval process takes over a year in most cases. A small pocket book piece of glass is laminated to a photo voltaic cell, and put into a test chamber where it is subjected to heating and cooling cycles. If it passes a minimum of 1000 hours in this test, the user calls for full size samples. They prepare PV panels using these samples, and wait for their result, in some cases after 3000 hours. Thereafter, they order a single or perhaps two containers to study the delivery and usage pattern by their own manufacturing plant. The glass must come out of the packing and go straight to their production line. Only after that do they accept the glass for regular use in their manufacturing programme.

The Company has undergone a very sharp learning curve through the course of the year.

Since we are in the initial stages of establishing ourselves, we had to pay the invoice value as claim. Now we have overcome the problem. Our product has been accepted by some of the largest PV Panel manufacturers in the world.

The Chinese supplier of the tempering equipment delayed deliveries of the tempering line by about 6 months. Owing to this, the Company was forced to supply annealed glass to glass processors in Europe at less remunerative prices. Moreover, owing to heavy monsoon rains and port congestion during the last year, a large portion of the glass remained inside containers for much longer periods than ideal. The high content of moisture caused white patches to develop on the glass and was consequently rejected by the customer after the glass reached Europe. This problem has since been resolved by taking several steps, including changing the packing material from timber to plywood, and using a high quality of silica gel to absorb any excess water vapor in the atmosphere.

After tempering operations commenced, the Company began to supply glass to module manufacturers in Europe and East Asia. Here, the company suffered another setback as"a large.portion of the glass for one customer was delivered 1 mm over the permitted tolerance. On further investigation, it was found that the glass had expanded an inordinate amount during the tempering operation. Since the glass was correct in all other aspects except for the marginal length increase, discussions were had with the end customer to accept this glass as a one time deviation. Owing to poor market conditions prevailing in Europe and large stocks of unsold product lying in the customer's warehouse, the Company was forced to accept the claim and take the goods back. The Company will make all efforts to resell these goods to other customers. However, the Company has provided for a loss of 3 crores out of an abundance Of caution on account of these returns. The tempering expansion issue has since been taken up with the Chinese supplier and an acceptable interim solution has been found. A long term solution has also been found. This will take two months to implement.

The last quarter of the financial year also saw the Italian government announce a cessation of the popular feed-in-tariff subsidy for end consumers, which caused a sharp slowdown in the market for solar glass. Sales in Italy slowed down overnight. This slowdown in Italy, being one of the top 3 largest markets in Europe, has caused stress for the solar markets worldwide with inventories of finished goods piling up and module manufacturers going slow in the purchase of all components, including glass.

The first quarter of the new financial year has seen some measure of stabilization for the solar market in general with the Italian government announcing a new subsidy in the first week of May. It is expected that this market will pick up soon and demand will resume from the 2nd quarter of this financial year. In the meanwhile,

the Company has been focusing on the domestic market and has established relationships with large Indian-consumers of solar glass. Shipments to these customers have started and are expected to contribute to a significant percentage of sales through the course of the year. After the various production improvements which'tiave been-made over the course of the year, the Company has seen no significant further claims since the month of March. Glass delivered since then has been accepted by customers as being world class in all aspects. Consequently, the Company expects a much better financial performance from the 2nd quarter onwards-'

All the above issues seriously affected the performance of the Company, resulting in a loss of about Rs 27.50 crores including the loss on sheet glass before it was shut down.

DIRECTORS

Mr. A.-R. Barwe, an independent Director expired on 5th October, 2010. The Board placed on record its appreciation for guidance received from Mr. A. R. Barwe during his brief stint as a Director of the Company. Mr. Ashok Kumar Doda was appointed as a Director of the Company w.e.f. 9th November, 2010 to fill casual vacaney caused by the sad demise of Mr. A. R. Barwe. Mr. B. L. Kheruka, owing to his preoccupation, relinquished his office of Managing Director w.e.f 17th March, 2011, while continuing as non-executive Chairman of the Gompany.

Mr. P. K. Kheruka and Mr. B. L. Kheruka retire by rotation and being eligible offer themselves for re-appointment.

Brief details of the Directors being appointed/reappointed are being incorporated in the Notice for the forthcoming Annual General Meeting. In addition, brief details of Mr. Ashok Kumar Doda are also being furnished there.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

A INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company has commenced manufacture of low iron solar glass for application in solar power sector. Solar PV market internationally has seen high growth. In India this is gaining momentum in view of favorable Policy announcements made by the Government of India and holds huge growth potential. A number of new plants for PV Modules/Solar energy are in pipeline and even large industrial houses have shown interest in the sector with huge capex planned.

It was hitherto operating a sheet glass plant in the Flat Glass sector consisting of float glass, sheet glass and figured glass as well as processed glass like tempered glass, mirrors etc. On completion of a prolonged campaign of its sheet glass plant the Company has decided to discontinue production of sheet glass and the furnace has not been renewed.

B. OPPORTUNITIES & THREATS

OPPORTUNITIES

- The Company enjoys first mover advantage in the solar glass sector and is in a position to seize the growing opportunity in the sector in domestic market. The Company is already assessing possibility of enhancing capacity by setting up a new furnace on the existing sheet glass facility.

THREATS

- Frequent fluctuation in the international market due to Government policies and Oil prices swings the demand for PV modules and consequently the solar glass requirement. The selling prices also keep fluctuating on account of this.

- Despite impetus provided by the Government by announcing policies there is a slower than expected growth in implementation and there is a considerable time lag in approval of proposals by respective state governments to set up solar power plants. This may cause delays in the growth.

C SEGMENTWISE OR PRODUCTWISE PERFORMANCE

The Company's business activity falls within a single primary business segment viz. Manufacture of Solar glass. As such, there are no separate reportable segments as per Accounting Standard 17.

D. OUTLOOK

The Government has announced long term policy measures which will accelerate the growth of solar energy in the Country which will require huge quantity of low iron glass. The solar energy produced will be more dependable by this non-conventional route and will reduce pressure on natural resources besides being non-polluting and environment friendly.

E RISK AND CONCERNS

The Government approval to the solar power projects should be expedited if the Country has to achieve plans to produce solar energy.

R INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate Internal Control System commensurate with its size and nature of business. The internal control systems are designed to ensure that the financial statements are prepared based on reliable information. The Internal Audit is continuously conducted by in house Internal Audit department of the Company and Internal Audit Reports are reviewed by the Audit Committee.

G DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The operating performance during the year suffered serious setback on account of shut down of sheet glass furnace, under utilisation of solar glass capacity and quality problems. The sales value was almost the same despite new solar glass plant with increased expenditure. The Company faced loss before interest and depreciation of Rs. 614.57 lacs as against a profit of Rs. 483.11 lacs in the previous year.

H. MATERIAL DEVELOPMENT IN HUMAN RESOURCES, INDUSTRIAL RELATION FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Consequent upon cooling down of Company's sheet glass furnace, the Company offered Voluntary Retirement Scheme (VRS) to its employees/workmen connected with the said plant in Govali (Bharuch) during the year, which has been accepted by 26 employees/workmen. The Company is rationalizing its workforce in order to effectively use it for Company's newly set up Low Iron Solar Glass plant. The Company has started partial closure process for its sheet glass plant and the surplus workmen will be suitably compensated as per legal provisions.

Number of people employed as on 31st March, 2011 were as under:

Staff :188

Workers : 243 (Excluding contract labour)

The industrial relations continued to be cordial though negotiations for compensation to sheet glass plant workmen are underway.

CORPORATE GOVERNANCE REPORT

A separate section on Corporate Governance is included in the Annual Report and the Certificate from Company's auditors confirming the compliance with the code of Corporate Governance as enumerated in Clause 49 of the listing agreement with the Stock Exchange is annexed hereto.

The Board of Directors of the Company has evolved and adopted a Code of Conduct and posted the same on the Company's website- www.guiaratborosil.com. The Directors and Senior Management personnel have affirmed their compliance with the code for the year ended 31st March, 2011.

DEPOSITS

Your Company has not accepted any deposits from Public till date.

POLLUTION CONTROL

The Company's plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

AUDITORS

M/s. Singhi & Company, Chartered Accountants, will retire as Auditors of the Company at the conclusion of the ensuing Annual General Meeting and being eligible'have expressed their willingness for re-appointment. As required per provisions under Section 224(1-B) of the Companies Act, 1956, a written certificate has been obtained by the Company from the Auditors stating that if they are re-appointed as Auditors of the Company, such re-appointment would be within the limits specified in Section 224(1-B) of the Companies Act, 1956.

DIRECTORS' RESPONSIBILITY STATEMENT

Subject to disclosures in the Annual accounts and also on the basis of the discussion with the Statutory Auditors of the Company from time to time, the Board of Directors state as under:

i) that in the preparation of the annual accounts, the applicable accounting standards have been followed and there were no material departures.

ii) that we have selected such accounting policies and applied them consistently and made judgements 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 or loss of the Company for that period.

iii) that we 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) that we have prepared the annual accounts on a going concern basis.

PARTICULARS OF EMPLOYEES

There was no employee drawing remuneration to the extent as required to be disclosed under Section 217(2A) of the Companies Act, 1956 and rules thereunder, as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

The particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are furnished in the Annexure to the Report.

ACKNOWLEDGMENT

Your Directors would like to express their deep appreciation for the co-operation received from employees and Company's bankers during the year under review. Directors also place on record their appreciation for the confidence reposed by the shareholders.

For and on behalf of the Board of Directors

Place : Mumbai B. L. Kheruka Date : 27th May, 2011 Chairman

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Mar 31, 2010

The Directors are pleased to present their Twenty-First Report and Audited Statement of Accounts for the year ended 31st March, 2010.

FINANCIAL RESULTS

The financial results for the year-ended 31st March, 2010 are given below :

(Rupees in Lacs) Year Ended Year Ended 31.03.2010 31.03.2009 Gross Sales (including Excise Duty) 8773.20 10291.76 Profit before interest, depreciation and tax 483.11 1590.22 Interest 66.43 11.54 Depreciation 554.93 533.27 Net Profit/(loss) before tax (138.25) 1045.41 Provision for Taxation (Net) 0.36 230.19 Provision for fringe benefit tax - 10.91 Provision for deferred tax liability/(Asset) (41.81) 122.92 Profit/(loss) after tax (96.80) 681.39 Add: Balance brought forward from last year 2018.52 1636.63 Available for appropriation 1921.72 2318.02 Appropriation: Transferred to General Reserve - 100.00 Proposed Dividend - 170.52 Dividend distribution tax - 28.98 Balance carried to the Balance Sheet 1921.72 2018.52

DIVIDEND

Your Directors do not recommend any dividendfor the year ended 31st March, 2010 in view of loss incurred during the year.

PERFORMANCE

The decline in demand due to slowdown in economy coupled with the pressure of supply from three new float glass producers caused a drop in selling prices of sheet glass and adversely impacted the Companys performance.

NEW PROJECT

The Low Iron Glass Project to manufacture 105 TPD has been commissioned from 16th March, 2010 after trial runs from middle of January. The project cost has been financed by a mix of internal accruals, Rupee loan and foreign currency loan. Production of glass from the new plant and sale/export of the finished goods has started. The plant is gradually attaining full production.

The tempering facility is being installed and will be commissioned shortly. In the meantime the Company is selling annealed glass to buyers/processors both in exports to Europe and in domestic market. The high solar energy transmission of our glass has been appreciated by our customers.

DIRECTORS

Mr. V. A. Gore, an Independent Director of the Company and member of the Audit and Remuneration Committees of the Board of Directors, expired on 2nd December, 2009. The Board placed on the record its appreciation for his valuable contribution to the Company.

Mr. A.R. Barwe was appointed as an Additional Director w.e.f. 29th May, 2010. The Company has received notice from a member of the Company under Section 257 of the Companies Act, 1956, alongwith the requisite deposit, in respect of Mr. Barwe, proposing his appointment as Director.

Mr. Jagdish Joshl and Mr. Shashi Mehra retire by rotation and being eligible offer themselves for re- appointment.

Brief details of the Directors being appointed / reappointed have been incorporated in the Notice for the forthcoming Annual General Meeting.

CORPORATE GOVERNANCE REPORT

A separate section on Corporate Governance is included in the Annual Report and the Certificate from Companys auditors confirming the compliance with the code of Corporate Governance as enumerated in Clause 49 of the listing agreement with the Stock Exchange is annexed hereto.

The Board of Directors of the Company has evolved and adopted a Code of Conduct and posted the same on the Companys website www.guiaratborosil.com . The Directors and Senior Management personnel have affirmed their compliance with the code for the year ended 31st March, 2010.

DEPOSITS

Your Company has not accepted any deposits from Public till date.

POLLUTION CONTROL

The Companys plants do not generate any effluent except flue gas, the chemical composition of which is within permissible limits.

AUDITORS & AUDITORSREPORT -

M/s. Singhi & Company, Chartered Accountants, will retire as Auditors of the Company at the conclusion of the ensuing Annual General Meeting and being eligible have expressed their willingness for re-appointment. The remarks made by the Auditor in their report are self explanatory.

DIRECTORSRESPONSIBILITY STATEMENT

Subject to disclosures in the Annual accounts and also on the basis of the discussion with the Statutory Auditors of the Company from time to time, the Board of Directors state as under:

i) that in the preparation of the annual accounts, the applicable accounting standards have been followed and there were no material departures.

ii) that we have selected such accounting policies and applied them consistently and made judgements 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 or loss of the Company for that period.

iii) that we 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) that we have prepared the annual accounts on a going concern basis.

PARTICULARS OF EMPLOYEES

Particulars of employees as required under Section 217(2A) of the Companies Act, 1956 are annexed hereto and form part of the Report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are furnished in the Annexure to the Report.

ACKNOWLEDGMENT

Your Directois would nke to express their deep appreciation for the co-operation received from employees and Companys bankers during the year under review. Directors also place on record their appreciation for the confidence reposed by the shareholders.

For and on behalf of the Board of Directors Place : Mumbai B.L.Kheruka Date : 29th May, 2010 Chairman & Managing Director