SUIL-Annual Report (140209)11am.p65 - Sujana Group

BOARD OF DIRECTORS 

CHAIRMAN : SHRI Y.S. CHOWDARY 

MANAGING DIRECTOR : SHRI G.SRINIVASA RAJU 

WHOLE TIME DIRECTOR : SHRI V.S.R. MURTHY 

DIRECTORS : DR. K. SRINIVASA RAO* 

SHRI J. RAMAKRISHNAN* 

SHRI S. HANUMANTHA RAO 

SHRI B.RAMACHANDRA RAO* 

SHRI S.RAMACHANDRAN* 

SHRI V.UDHAYASANKAR* 

*Independent, Non-Executive Directors 

MANAGEMENT COMMITTEE : SHRI Y.S.CHOWDARY 

SHRI G.SRINIVASA RAJU 

SHRI J.RAMAKRISHNAN 

AUDIT COMMITTEE : DR. K.SRINIVASA RAO 

SHRI S. HANUMANTHA RAO 

SHRI J. RAMAKRISHNAN 

SHRI B.RAMACHANDRA RAO 

SHARE TRANSFER COMMITTEE : SHRI Y.S.CHOWDARY 



SHAREHOLDERS' GRIEVANCE : SHRI Y.S.CHOWDARY 

COMMITTEE 



REMUNERATION COMMITTEE : SHRI S. HANUMANTHA RAO 

DR.K.SRINIVASA RAO 


COMPANY SECRETARY : SHRI P. APSER HUSSEN 

AUDITORS : M/s. T.RAGHAVENDRA & ASSOCIATES 

CHARTERED ACCOUNTANTS 

NO.22, KRISHNA APARTMENTS 

5TH FLOOR, TILAK ROAD, ABIDS 

HYDERABAD - 500 001 

BANKERS : BANK OF BARODA 

BANK OF INDIA 

IDBI BANK LIMITED 

FINANCIAL INSTITUTIONS : IDBI BANK LIMITED 

IFCI LIMITED 

: : 1 : :

SUJANA UNIVERSAL INDUSTRIES LIMITED 

REGISTERED OFFICE : PLOT NOs.10,11 & 12, IDA BOLLARAM, 

JINNARAM MANDAL, MEDAK DIST, A.P. 

PLACE OF KEEPING THE BOOKS OF : NO.18, NAGARJUNA HILLS 

ACCOUTNS U/S. 209 OF THE PUNJAGUTTA, HYDERABAD - 500 082. 

COMPANIES ACT, 1956. 

WORKS 

- LEC DIVISION : PLOT NOs.10,11 & 12, 

SURVEY NO.172, 

IDA, BOLLARAM VILLAGE, 

JINNARAM MANDAL, MEDAK DIST, A.P. 

- DOMESTIC APPLIANCES : PLOT NO.1B, SURVEY NO. 308, 

DIVISION 

SRI VENKATESWARA CO-OPERATIVE 

INDUSTRIAL ESTATE, JEEDIMETLA, 

HYDERABAD-500 055. 

- STEEL PRODUCTS DIVISION : PLOT NO.128/A, 

I.D.A. BOLLARAM 

JINNARAM MANDAL, 

MEDAK DIST, A.P. 

- INFRASTRUCTURE DIVISION : NO.18, NAGARJUNA HILLS, 

PANJAGUTTA, HYDERABAD - 500 082. 

LISTING : EQUITY 

BOMBAY STOCK EXCHANGE LIMITED, 

PHIROZE JEEJEEBHOY TOWERS, 

DALAL STREET, MUMBAI - 400 001. 

: : 2 : : 

NATIONAL STOCK EXCHANGE OF INDIA LIMITED 

5TH FLOOR, EXCHANGE PLAZA, 

BANDRA (E), MUMBAI 400 051. 

GLOBAL DEPOSITORY RECEIPTS (GDRs) 

LUXEMBOURG STOCK EXCHANGE, 

SOCIETE DE LA BOURSE DE LUXEMBOURG, 

SOCIETE ANONYME, RC LUXEMBOURG 

B 6222. 

REGISTRARS & SHARE TRANSFER : M/S. BIGSHARE SERVICES PRIVATE LTD. 

AGENTS 

G-10, LEFT WING, AMRUTHA VILLE, 

OPP.YASHODA HOSPITAL, 

RAJ BHAVAN ROAD, SOMAJIGUDA, 

HYDERABAD -500 082.

NOTICE 

NOTICE is hereby given that the 

Twentieth Annual General Meeting of the 

Members of the Company will be held on 

Friday, the 27th day of February, 2009 

at Plot Nos.10, 11 & 12, Survey No.172, 

Bollaram Village, Jinnaram Mandal, 

Medak District, Andhra Pradesh at 10.00 

A.M. to transact the following business: 

ORDINARY BUSINESS 

1 To receive, consider and adopt the 

audited balance sheet of the Company 

as at 30th September, 2008 and the profit 

and loss account for the period ended 

30th September, 2008 and the Reports 

of the Directors and Auditors thereon. 

2. To appoint a Director in place of Shri 

J.Ramakrishnan, who retires by rotation 

and being eligible, offers himself for reappointment. 

3. To appoint a Director in place of Shri 

B.Ramachandra Rao, who retires by 

rotation and being eligible, offers himself 

for re-appointment. 

4. To appoint Auditors of the Company to 

hold office from the conclusion of this 

Annual General Meeting until the 

conclusion of the next Annual General 

Meeting of the Company and to fix their 

remuneration. The retiring Auditors 

M/s. T. Raghavendra & Associates are 

eligible for re-appointment. 

SPECIAL BUSINESS 

5. To consider and if though fit, to pass 

with or without modifications, the 

following resolution as Special 

Resolution : 

“RESOLVED that pursuant to the 

provisions of Section 198, 269, 309, 

Schedule XIII and other applicable 

provisions, if any, of the Companies Act, 

1956 and subject to the approval of the 

Central Government, if necessary, Shri 

Y.S.Chowdary, Chairman’s remuneration 

be fixed as Rs.1,20,00,000/- (Rupees 

: : 3 : : 

One Crore Twenty Lakhs only) per annum 

including perks with effect from 

01.4.2008.” 

“RESOLVED FURTHER that Shri 

G.Srinivasa Raju, Managing Director and 

Shri P.Apser Hussen, Company Secretary 

of the Company be and are hereby 

severally authorized to file necessary 

forms with Registrar of Companies, to 

complete all the formalities and 

compliances and to do all such acts, 

deeds and things as may be necessary in 

this regard.” 

6. To consider and if though fit, to pass 

with or without modifications, the 

following resolution as Special 

Resolution : 

“RESOLVED that pursuant to the 

provisions of Sections 198, 269, 309, 

Schedule XIII and other applicable 

provisions, if any, of the Companies Act, 

1956 and subject to the approval of the 

Central Government, if necessary, Shri 

V.S.R Murthy, Director of the Company 

be and is hereby appointed as Whole Time 

Director of the Company for a period of 

one year w.e.f. 29.01.2009.” 

“RESOLVED FURTHER that Shri V.S.R 

Murthy, be and is hereby entitled for the 

remuneration of Rs.12,00,000/- per 

annum payable on a monthly basis as 

follows with effect from the date of his 

appointment ie., 29 th January, 2009. 

Basic : Rs. 60,000/- 

H.R.A : Rs. 20,000/- 

Conveyance : Rs. 800/- 

Medical : Rs. 1,000/- 

Reimbursement 

Telephone : Rs. 2,500/- 

Reimbursement 

L.T.C : Rs. 6,000/- 

Special Allowance : Rs.6420/- 

Meals Vouchers : Rs. 2,500/- 

Employees 

Contribution to PF : Rs. 780/- 

Total : Rs 1,00,000/-


“RESOLVED FURTHER that Shri 

G.Srinivasa Raju, Managing Director and 

Shri P.Apser Hussen Company Secretary 

of the Company be and are hereby 

severally authorized to file necessary 

forms with Registrar of Companies, to 

complete all the formalities and 

compliances and to do all such acts, 

deeds and things as may be necessary in 

this regard.” 

BY ORDER OF THE BOARD 

PLACE: HYDERABAD Y.S. CHOWDARY 

DATE : 29.01.2009 CHAIRMAN 

NOTES: 

1. A MEMBER ENTITLED TO ATTEND AND 

VOTE AT THE MEETING IS ENTITLED TO 

APPOINT A PROXY TO ATTEND AND VOTE 

INSTEAD OF HIMSELF AND SUCH PROXY 

NEED NOT BE A MEMBER OF THE 

COMPANY. PROXIES DULY STAMPED AND 

SIGNED MUST BE DEPOSITED AT THE 

COMPANY'S REGISTERED OFFICE NOT 

LESS THAN 48 HOURS BEFORE THE TIME 

FOR HOLDING THE MEETING. 

2. Members/Proxies are requested to bring 

along with them Annual Reports being 

sent to them. 

3. The Share transfer books and Register of 

Members of the Company will remain 

closed on 26th February, 2009 (One day 

only). 

4. The Register of Directors' Shareholding 

maintained under Section 307 of the 

Companies Act, 1956, will be available 

for inspection at the venue of the Annual 

General Meeting of the Company during 

the Annual General Meeting. The Register 

of Directors' Shareholding is also available 

for inspection of the Members at the 

registered office of the Company, 

fourteen days before and three days after, 

the date of the Annual General Meeting 

of the Company. 

5. The registration of share transfers and 

other related correspondence will be dealt 

with by the Company at M/s. Bigshare 

Services Private Limited of Mumbai, 

having its branch office at G-10, Left 

Wing, Amruta Ville, Opp: Yashoda 

Hospital, Raj Bhavan Road, Somajiguda, 

Hyderabad - 500 082. 

6. Explanatory Statement pursuant to the 

provisions of Section 173(2) of the 

Companies Act, 1956 is enclosed. 

EXPLANATORY STATEMENT PURSUANT 

TO THE PROVISIONS OF SECTION 173(2) 

OF THE COMPANIES ACT, 1956: 

5. Shri Y.S.Chowdary has been on the Board 

of Directors of the Company since 

22.08.1986 and elected as Chairman in 

the meeting of the Board of Directors of 

the Company held on 30.08.1994. Shri 

Y.S.Chowdary is a Promoter-Director of 

Sujana Group. He holds Bachelor Degree 

in Mechanical Engineering from Chaitanya 

Bharathi Institute of Technology, 

Hyderabad. Further he holds a Master 

Degree in Engineering with specialization 

in Machine Tools from P.S.G. College of 

Technology, Coimbatore. He played an 

important and key role in establishing the 

Sujana Group of Companies. He has been 

a constant driving force for fostering 

higher growth amongst all the Group 

Companies. Shri Y.S. Chowdary has in 

depth knowledge and a deep insight into 

the domestic and global steel products 

industry. 

Keeping in view the services being 

rendered by Shri Y.S.Chowdary for the 

Company, it has been proposed to fix the 

remuneration to him as mentioned in the 

resolution for a period of five years with 

effect from 1 st April, 2008. 

In accordance with the provisions of 

Sections 198, 269 and 309 of and 

Schedule XIII of the Companies Act, 

1956, approval of shareholders is 

required to fix the remuneration 

w.e.f.01.04.2008 till the expiry of his 

tenure of office on 31.03.2013. 

: : 4 : :

Therefore, your Directors recommend the 

resolution for your approval. 

None of the Directors of the Company 

except Shri Y.S.Chowdary is concerned 

or interested in the aforesaid resolution. 

6. Shri V.S.R.Murthy has been appointed as 

Whole Time Director of the Company 

subject to the approval of members of 

the Company in the forthcoming annual 

general meeting for a period of one year 

with effect from 29.01.2009. 

- Brief profile of Shri B.Ramachandra 

Rao, Director, who retires by rotation 

and is eligible for re-election. 

Shri B.Ramachandra Rao has been on the 

Board of Directors since 30th January, 

2006. 

Shri B.Ramachandra Rao has done M.A 

(Public Administration) and he had 

banking experience of 35 years at various 

senior levels. 

Shri V.S.R.Murthy is highly experienced 

professional banker with over 34 years 

of distinguished service and experience 

in one of the top Public Sector Banks in 

India. 

In accordance with the provisions of 

Sections 198, 269 and 309 of and 

Schedule XIII of the Companies Act, 

1956, approval of shareholders is 

required to appoint Shri V.S.R.Murthy as 

Whole Time Director of the Company and 

to fix the remuneration as mentioned in 

the resolution w.e.f. 29.01.2009. 

Therefore, your Directors recommend the 

resolution for your approval. 

None of the Directors of the Company 

except Shri V.S.R.Murthy is concerned or 

interested in the aforesaid resolution. 

Additional Information 

- Brief profile of Shri J.Ramakrishnan, 

Director, who retires by rotation and 

is eligible for re-election. 

Shri J.Ramakrishnan has been on the 

Board of Directors since 25th July, 1995. 

Shri J.Ramakrishnan, retired as Principal 

Collector, Central Excise and Customs 

Department. He is having over 30 years 

of experience in Central Excise and 

Customs Department. 

Shri J.Ramakrishnan, presently holding 

the position of Director in Sujana Metal 

Products Limited. 

: : 5 : :


DIRECTORS' REPORT 

To 

The Members of Sujana Universal Industries 

Limited, 

Your Directors hereby present Twentieth 

Annual Report together with the Audited 

Accounts for the financial year ended 30th 

September, 2008 comprising Fifteen (15) 

months from 01.07.2007 to 30.09.2008. 

1. Company's Performance: 

Your Directors hereby report that the 

Company has achieved a turnover of 

Rs.117283.92 lakhs upto 30.09.2008, 

consisting of fifteen (15) months, as 

against the turnover of Rs.90907.92 lakhs 

for the previous year ended 30.06.2007 

consisting of twelve (12) months. 

The highlights of the financial results are 

as follows: 

(Rupees in Lakhs) 

Particulars 2007-2008 2006-2007 

(15 Months) (12 Months) 

Profit before Depreciation & 9796.92 7874.91 

Interest 

Interest 3545.60 2385.16 

Depreciation 2796.19 2106.15 

Profit before tax 3455.13 3383.60 

Provision for tax 

- Current tax 345.00 747.90 

- Deferred tax 223.75 379.76 

- Fringe Benefit tax 9.81 5.51 

- Provision for dividend tax 5.18 4.14 

Profit after tax 2871.39 2246.28 

Prior year adjustments -574.05 (66.13) 

Profit after tax & prior year 2297.34 2180.16 

adjustments 

Balance of profit brought 12272.15 10116.35 

forward from earlier years 

Profit available for appropriation 14569.49 12296.51 

Appropriations: 

Proposed Dividend: 

- Equity -- -- 

- Preference 30.45 24.36 

Balance of Profit 14539.04 12272.16 

2. Operations: 

Light Engineering Components (LEC) 

Division: 

The total turnover of the Division for the 

15 months period ended 30.09.2008 is 

Rs.4869 lakhs, which mainly includes the 

turnover of Bearings, Bearing 

components and other products. 

Appliances Division 




turnover of all varities of fans and fan 

Components and other products. 

Steel Products Division 



Rs.109745 lakhs, which mainly includes 

the turnover of Casting Division, 

Processing Division and Trading of Steel 

products. During the period the export 

turnover of various products is 12555.47 

lakhs. 

Infrastructure Division 

The Company has plans to undertake 

construction and developmental activities 

like integrated residential townships, 

commercial buildings and specialized 

design and construction of integrated 

medical college and super specialty 

hospital etc., 

3. Subsidiary Companies: 

Your Company formed the following 

wholly owned subsidiaries: 

a. M/s. PAC Ventures Pte Limited, in 

Singapore on 11th December, 

2006 for carrying on the business 

of general wholesale trade 

including general importers and 

exporters. 

The audited financial statements 

upto 31.05.2008 are annexed 

from page no. 54 to Page no. 57 

and forming part of this annual 

report. 

: : 6 : :

. M/s.Nuance Holdings Limited in 

Hong Kong on 27th August, 2007 

for carrying on the business of 

investments and trading. 

The audited financial statements 

upto 30.06.2008 are annexed from 

page no. 58 to page no. 63 and 

forming part of this annual report. 

c. M/s Sujana Holdings Limited, in 

Dubai on 4th February, 2007 for 

carrying on the business of 

investments and trading. 

The audit of the financial statements 

is yet to be completed. Therefore 

financial statements could not be 

attached as per Sec.212 of the 

Companeis Act, 1956. 

d. M/s. Sun Trading Limited in Cayman 

Islands on 18th July, 2008 for 

carrying on the business of general 

wholesale trade. 

The first financial year is yet to be 

completed. The preparation and 

audit of the financial statement is 

not compulsory as per the Company 

Law of Cayman Islands. Therefore 

the audited financial statements 

could not be annexed as per Sec. 

212 of the Companies Act, 1956. 

However, statements pursuant to 

Sec.212 of the Companeis Act, 1956 

on the subsidiary companeis as on 

30.09.2008 are attached from page 

no. 64 to page no. 67. 

The Consolidated Financial Statements 

(consisting of the annual audited 

accounts of your Company for the year 

ended 30th September 2008 and 

unaudited financial statements of the 

subsidiary companies upto 30th 

September 2008) have been annexed to 

the Annual Report. 

4. Industrial Relations: 

Your Board of Directors are happy to 

report that the Industrial Relations have 

been extremely cordial at all levels 

throughout the year. 

: : 7 : : 

5. Directors: 

Shri J.Ramakrishnan and Shri 

B.Ramachandra Rao, Directors of the 

Company, are liable to retire by rotation 

in the forthcoming Annual General 

Meeting of the Members of the Company 

and being eligible offers themselves for 

reappointment. 

Shri. V.Udhayasankar was appointed as 

Nominee Director from IFCI Limited with 

effect from 28th April, 2008 on the Board 

of the Company in place of Shri 

Narayandas Auddy. 

Shri. S.Ramachandran was appointed as 

Nominee Director from IDBI Limited with 

effect from 10th December, 2008 on the 

Board of the Company in place of Shri 

B.P.Mandal. 

Shri V.S.R. Murthy was appointed as 

Whole Time Director of the Company for 

a period of one year w.e.f. 29.01.2009. 

6. Directors' Responsibility Statement: 

Pursuant to Section 217(2AA) of the 

Companies Act, 1956, the Directors, 

based on the representations received 

from the Operating management, confirm 

that 

a. in the preparation of the annual 

accounts, the applicable accounting 

standards have been followed and 

that no material departures have 

been made from the same; 

b. that they 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; 

c. that they 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; 

d. that they have prepared the annual 

accounts on a going concern basis. 

7. Promoter Group Companies: 

Pursuant to an intimation from 

promoters, names of promotes and 

companies comprising the "Group" as 

defined in the Monopolies and Restrictive 

Trade Practices ("MRTP") Act, 1969, have 

been disclosed on page No. 14 in the 

Annual Report. 

8. Code of conduct 

The Board has laid down a Code of 

Conduct for all Board Members and Senior 

Management of the Company. The Code 

of Conduct has been posted on the 

Company's website. Board Members and 

Senior Management personnel have 

affirmed compliance with the Code for the 

financial year 2007-08. A separate 

declaration to this effect is made out in 

the Corporate Governance Report. 

9. Auditors: 

The Company's Auditors, M/s. 

T.Raghavendra & Associates, Chartered 

Accountants, Hyderabad will retire at the 

ensuing Annual General Meeting of the 

Company and being eligible offers 

themselves for re-appointment. 

10. Personnel: 

Information in accordance with Section 

217(2A) of the Companies Act, 1956 read 

with the Companies (Particulars of 

Employees) Rules, 1975 is given as 

Annexure - 1 to this report. 

11. Human Resource Management: 

The key resource for your Company is its 

employees. Your Company has been able 

to create a favourable work environment 

that encourages innovation and 

meritocracy. The efforts of your Company 

in the area of employee management and 

HR practices have been proved effective 

in Human Resource Management. 

12. Issue of Equity Shares through 

Global Depository Receipts (GDRs) 

Pursuant to the special resolution passed 

by the members of the Company through 

Postal Ballot on 7th June, 2007, your 

Company had successfully made issue 

and allotment of 3,00,00,000 equity 

shares of Rs.10/- each at a premium of 

Rs. 10.50/- per share equivalent to 

30,00,000 Global Depository Receipts 

representing 10 equity shares of Rs.10/- 

each per one GDR, aggregating US$ 

15.09 Millions. 

The Global Depository Receipts have been 

listed on the Luxembourg Stock 

Exchange. The underlying equity shares 

were also listed in BSE and & NSE. 

13. Issue of Equity Shares by way of 

preferential allotment. 

Pursuant to the special resolution passed 

by the members of the Company through 

Postal Ballot on 7th June, 2007, your 

Company had successfully completed the 

issue and allotment of 40,00,000 equity 

shares of Rs.10/- each at a premium of 

Rs.10.50/- per share and 49,00,000 

compulsorily convertible warrants of 

Rs.10/- each at a premium of Rs.10.50/ 

- per warrant. The said warrants of 

49,00,000 were converted into 49,00,000 

equity shares of Rs.10/- each on 28th 

September, 2007 and listed in BSE and 

NSE. 

14. Conversion of 12,00,000, Optionally 

Fully Convertible Debentures 

(OFCDs) of Rs.100/- 

As part of restructuring of loans availed 

from IFCI Limited, 12,00,000, Optionally 

Fully Convertible Debentures (OFCDs) of 

Rs.100/- each, issued on 25th January, 

2007 to IFCI Limited, Hyderabad, through 

private placement as preferential 

allotment as per 

: : 8 : :

(a) 

(b) 

(c) 

(d) 

the letters issued by 'IFCI Limited, 

Hyderabad, vide its letter Nos.(a) 

HRO.E.129/206-596, dated 

25.04.2006 (b) HRO.E.129/2006/ 

688 dated 21.07.2006 and (c) 

HRO.E.129/2006/809 dated 

04.08.2006, sanctioning One Time 

Settlement (OTS) of dues in respect 

of the loans availed by the Company 

from IFCI Limited, Hyderabad 

the special resolution passed by the 

members of the Company under 

Section 81(1A) of the Companies 

Act, 1956 at their 18th Annual 

General Meeting held on 28th 

December, 2006, 

the pricing certificate issued by 

Statutory Auditors of the Company 

as per SEBI (Disclosure and Investor 

Protection) Guidelines, 2000 as 

amended from time to time and 

the prior in -principle approval given 

by the Bombay Stock Exchange 

Limited, Mumbai vide their Letter 

No.DCS/PREF/PGS/PRE/622/06-07, 

dated 15th January, 2007. 

The said OFCDs had been converted 

into 49,79,253 equity shares of 

Rs.10/- each at a premium of 

Rs.14.10/- per share on 23rd July, 

2008 and forming part of the equity 

share capital of the Company and 

listed in BSE and NSE. 

17. Dividend 

The Board of Directors of your Company 

has recomended dividend of 1% on 

24,36,200 Cumulative Redeemable 

Preference Shares of Rs.100/- each to the 

holders of Cumulative Redeemable 

Preference Shares for the year under 

review as per the terms of issue of 

Cumulative Redeemable Preference 

Shares. 

18. Fixed Deposits: 

The Company has not accepted any fixed 

deposits and the provisions of Section 

58A of the Companies Act, 1956 are not 

applicable. 

19. Conservation of Energy, Research 

and Development, Technology 

Absorption, Foreign Exchange 

Earnings and Outgo: 

The details regarding Energy 

Conservation, Technology Absorption, 

Foreign Exchange Earnings and Outgo as 

required by section 217(1)(e) of the 

Companies Act, 1956 read with the 

Companies (Disclosure of the particulars 

in the report of the Board of Directors) 

Rules, 1988 are given in Annexure-2 and 

forms part of this report. 

20. Corporate Governance: 

15. Listing of Company's Securities: 

Your Company's shares are currently 

listed on Bombay Stock Exchange Limited 

(BSE) and National Stock Exchange of 

India Limited (NSE), Mumbai and the 

Global Depository Receipts are currently 

listed at the Luxembourg Stock 

Exchange. 

16. Dematerialization of Shares: 

Your Company's shares have been made 

available for dematerialization through 

the National Securities Depository 

Limited (NSDL) and Central Depository 

Services (India) Limited (CDSL). 

: : 9 : : 

A detailed report on Corporate 

Governance has been included separately 

in the Annual Report. A report on 

Management Discussion and Analysis 

prepared and attached to the Directors' 

Report also forms part of this Annual 

Report. 

21. Explanations to any qualifications in 

Auditors' Report: 

There are no adverse remarks in the 

Auditors' Report dated 10th December, 

2008. However the status on the disputed 

statutory dues is mentioned in Schedule 

19 under notes on accounts.


22. Acknowledgment: 

The Board of Directors of the Company extends their sincere appreciation to the Government, 

Bankers, Financial Institutions and others for their kind support. On behalf of the Company, 

the Board of Directors thank the employees for their valuable efforts and the shareholders 

for their undaunted faith in the Company. 


PLACE: HYDERABAD 

Y.S.CHOWDARY 

DATE : 29.01.2009 

CHAIRMAN 

ANNEXURE - 1 

Information as per Section 217(2A) of the Companies Act, 1956 read with Companies 

(Particulars of Employees) Rules 1976 and forming part of the Directors’ Report for 

the year ended 30 th September, 2008. 

Name of the Employee : Shri Y.S.Chowdary 

Age : 47 Years 

Designation : Executive Chairman 

Remuneration Received : Rs.60,00,000/- (Employed for part of the 

year from 01.04.2008 to 30.09.2008) 

Date of commencement of employment : 1 st April, 2008. 

Qualifications : Bachelor Degree in Mechanical Engineering 

from Chaitanya Bharathi Institute of Technology, 

Hyderabad and Master Degree in Engineering 

with specialization in Machine Tools 

from P.S.G. College of Technology, 

Coimbatore. 

Experience : Shri Y.S.Chowdary has been on the Board of 

Directors of the Company since 22.08.1986 

and elected as Chairman in the meeting of 

the Board of Directors of the Company held 

on 30.08.1994. Shri Y.S.Chowdary is a Promoter-Director 

of Sujana Group. He played 

an important and key role in establishing the 

Sujana group of companies. He has been a 

constant driving force for fostering higher 

growth amongst all the group companies. 

Shri Y.S. Chowdary has in depth knowledge 

and a deep insight into the domestic and global 

steel products industry. 

Number of equity shares held by him 

(along with the persons acting in concert 

with him) and % of the same to the total 

capital of the Company : 2,22,76,035 (17.99%) 


PLACE: HYDERABAD 

DATE : 29.01.2009 

: : 10 : : 

Y.S.CHOWDARY 

CHAIRMAN

ANNEXURE - 2 

Information as per 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 and forming part of 

the Directors' Report is given below: 

A. CONSERVATION OF ENERGY: 

a) Energy conservation Energy saving 

measures are being 

implemented to 

reduce energy cost 

per unit of 

manufacture. 

b) Additional investment 

and proposals, if any, 

being implemented 

for reduction of 

consumption of energy. 

c) Impact of the measures 

at (a) and (b) above for 

reduction of energy and 

consequent impact on 

cost of production. 

d) Total energy 

consumption and 

energy consumption 

per unit of production. 

--NIL-- 

N.A. 

B. TECHNOLOGY ABSORPTION: 

e) Efforts made in Details given 

technology absorption hereunder in 

as per Form B. Form B. 

C. FOREIGN EXCHANGE EARNINGS & 

OUTGO: 

f) Activities relating to 

export initiatives taken 

to increase exports, 

development of new 

export markets for 

products and services 

and export plans. 

g) Total foreign exchange 

used and earned. 

Earned : Rs. 12548.75 lakhs 

Used : Rs. 13138.59 lakhs 

Cost of production 

will come down 

and price will 

become 

competitive 

FORM-B 

Form for disclosure of particulars with respect 

to Technology Absorption, Research and 

Development (R&D) 

1. Specific areas in which R&D carried 

out by the Company: -Nil- 

2. Benefit derived as a result of the 

above R&D: 

-Nil- 

3. Future plan of Action: 

Completion of product development 

action. 

Expenditure on R&D: 

-Nil- 

Technology Absorption, Adoption and 

Innovation: 

1. Efforts in brief made towards 

technology absorption,adoption 

and innovation 

2. Benefits derived as a result of 

the above efforts e.g. product 

improvement, cost reduction 

product development, import 

substitution 

3. In case of imported technology 

(imported during the last five 

years reckoned from the 

beginning of the financial year) 

following information may be 

furnished. 

a) Technology imported 

b) Year of import 

c) Has technology been fully 

absorbed 

d) If not fully absorbed, areas 

where this has not taken 

place, reasons here of and 

future plans of action. 

PLACE: HYDERABD 

DATE : 29.01.2009 

Not 

applicable 

Improvement 

in 

sales and 

margins. 

Not 

applicable 


Y.S.CHOWDARY 

CHAIRMAN 

: : 11 : :


MANAGEMENT DISCUSSION AND 

ANALYSIS 

The following Management Discussion and 

Analysis contains a brief write-up on the 

industry structure, opportunities and concerns, 

performance of the Company with respect to 

the operations and other information. 

Industry structure and developments: 

The requirement for steel products is 

poised for excellent market opportunities 

in the coming years. Overall industrial 

development of the country will 

necessarily call for a sound infrastructure 

development particularly in the area of 

transport, power water communication, 

civil construction etc. The increased 

thrust of the government on 

infrastructure development and rural 

construction coupled with a steady 

performance of user industries like 

automobile, consumer durable, 

construction, and infrastructure will scale 

up the domestic demand and 

consumption in the short term. As a 

result, the domestic steel industry's 

fundamentals indicate a reasonably 

favourable outlook, while cyclical 

fluctuations not ruled out. 

Opportunities, Strengths and Threats: 

There are excellent opportunities in Steel 

products due to large scale investments 

in infrastructure and construction 

activities. The constant growth in auto 

sector the demand for auto components 

has also gone up substantially in the 

domestic and international market. Your 

Company has capabilities to quickly adapt 

to the changing market conditions and 

sustain the projected growth in sales and 

profits. There is severe competition from 

the other secondary manufacturers and 

the prices are expected to be volatile. 

: : 12 : : 

Business Outlook: 

The infrastructure industry is benefiting 

from structural changes like the fall in 

interest rates over the last few years and 

greater economies of scale due to the 

large, and the growing size of the 

domestic industry market size. The 

Company has taken up extensive 

development activity of value added 

products to improve the margins by 

achieving higher volume of sales. The 

efforts of the Company are expected to 

yield favourable results. 

Internal control systems and their 

adequacy: 

The Company has in place adequate 

internal control systems and procedures 

commensurate with the size and nature 

of business. The Company has 

established internal control systems and 

the same are constantly reviewed and 

improved wherever required. Depending 

on the changing requirements the internal 

audit department is strengthened. The 

Company has implemented corporate 

governance requirement and the audit 

committee periodically reviews the 

systems and procedures of the Company. 

Financial Performance: 

The Gross Block as on 30.09.2008 stood 

at Rs. 34110.31 lakhs and the Net Block 

as on 30.09.2008 stood at Rs.20167.93 

lakhs. The deferred tax liability has been 

provided in accordance with the 

requirements of Accounting Standard 22 

- Accounting of Taxes on Income, issued 

by the Institute of Chartered Accountants 

of India and the Provision for Fringe 

Benefit tax was created as per Income- 

Tax Act, 1961 

Operational Performance: 

Your Company has achieved a turnover 

of Rs.118099.33 earning a Profit before 

tax of Rs. 3455.13 Lakhs.

Segment Wise Performance 

Light Engineering Components (LEC) 

Division: 




turnover of Bearings, Bearing 

components and other products. 

Appliances Division 



Rs. 3486 lakhs, which mainly includes the 

turnover of all varities of fans and fan 

Components and other products. 

Steel Products Division 



Rs.109745 lakhs, which mainly includes 

the turnover of Casting Division, 

Processing Division and Trading of Steel 

products. During the period the export 

turnover of various products is 12555.47 

lakhs. 

Infrastructure Division 

The Company has plans to undertake 

construction and developmental activities 

like integrated residential townships, 

commercial buildings and specialized 

design and construction of integrated 

medical college and super specialty 

hospital etc., 

Material developments in Human 

Resources: 

The development of Human Resources is 

a key strategic challenge in order to 

prepare people for future responsibilities 

in terms of professional skills as well as 

business skills. Sujana Universal 

Industries Limited has conducted training 

programmers to its employees enabling 

them to improve / upgrade their skills. 

: : 13 : : 

Persons constituting Group coming within 

the definition of 'Group' as defined in the 

Monopolies and Restrictive Trade Practices 

Act, 1969 include the following: 

01. Shri Y.S. Chowdary and his relatives* 

02. Shri G. Srinivasa Raju and his relatives* 

03. Shri S. Hanumantha Rao and his relatives* 

04. Shri R.K. Birla and his relatives* 

05. Foster Infin and Trading Private Limited 

06. Glade Steel Private Limited 

07. Sujana Capital Services Limited 

08. Sujana Energy Private Limited 

09. Sujana Finance and Trading Private Limited 

10. Sujana Holdings Limited, India 

11. Sujana Metal Products Limited 

12. Sujana Projects Limited 

13. Sujana Pumps and Motors Private Limited 

14. Sujana Towers Limited 

15. Sujana Transmissions Limited 

16. Yalamanchili Finance and Trading Private Limited 

17. YS Consultancy Services Private Limited 

18. Alpha ventures Limited, Cayman Islands 

19. Asian Tide Enterprises Limited, Hong Kong 

20. Digitech Business Systems Limited, Hong Kong 

21. Empire Gulf FZE, UAE 

22. Gamma Machinery & Equipment Pte. Limited, 

Singapore 

23. Nuance Holdings Limited, Hong Kong. 

24. Pac Ventures Pte. Limited, Singapore 

25. Sujana Holdings Limited, UAE 

26. Sun Trading Limited, Cayman Islands 

27. Telesuprecon Limited, Mauritius 

* As per the Companies Act, 1956 

During the year 2006-07, there was merger of 

M/s Sujana Steels Limited with M/s Sujana Metal 

Products Limited. M/s GB Trading and 

Investments Private Limited, Lumbini Electricals 

Private Limited, Golkonda Finance and Trading 

Private Limited and Prime Infoinvest Limited 

were Non Promoter shareholders in M/s Sujana 

Steels Limited and during the process of merger 

with M/s Sujana Metal Products Limited, these 

Companies were treated as Promotes’ Group 

by Bombay Stock Exchange Limited. However, 

these companies represented to delete their 

names from the Promoters group of Sujana 

Group of Companies. 

The above statement has been published to avail 

of the exemption under regulation 3(1)(e)(i) of 

Securities and Exchange Board of India 

(Substantial Acquisition of Shares and 

Takeovers) Regulations, 1997 as amended from 

time to time.


REPORT ON CORPORATE 

GOVERNANCE 

(As per Clause 49 of the Listing 

Agreements entered into with the 

Stock Exchanges) 

I. Brief statement on Company's 

Philosophy on Code of Governance 

Corporate Governance is the set of 

policies, practices, procedure and 

processes by which a Company conducts 

its affairs in pursuit of its business goals. 

Your Company believes in adopting the 

best practices in the areas of Corporate 

Governance. Even in this cutthroat 

competitive business environment, the 

Management of your Company is 

committed to achieve the values of 

integrity, honesty, transparency and 

accountability which are fundamental to 

the Sujana Group. 

During the year, the Company has its best 

corporate practices so as to bring them 

in line with the revised Clause 49 of the 

listing agreements. The Company 

adopted the Code of Conduct for Non- 

Executive Directors as prescribed in the 

revised Clause. 

independence of the board and to 

separate the board functions of 

governance and management. 

Thus, your Company's Board of Directors 

consists of Nine (9) members, out of 

which one (1) is Managing Director and 

one (1) is Promoter and Executive 

Chairman, one (1) is Whole Time 

Director, three (3) of them are 

Independent and Non-Executive 

Directors, one (1) is Non- Executive 

Director and two (2) are Nominee 

Directors. 

None of the Directors on the Board is a 

Member on more than 10 Committees 

and Chairman of more than 5 

Committees (as specified in Clause 49), 

across all the companies in which he is a 

Director. The necessary disclosures 

regarding Committee positions have 

been made by the Directors. 

The names categories of the Directors 

on the Board, their attendance at the 

Board Meetings during the year and at 

the last Annual General Meeting, as also 

the number of Directorships and 

Committee memberships held by them 

in other companies are given below: 

The Company will continue to focus its 

resources, strengths and strategies for 

creation and safeguarding of 

shareholder's wealth and at the same 

time protect the interests of all its 

shareholders. 

II. 

Board of Directors 

1. Composition of the Board of Directors 

At present the Company is having an 

Executive Chairman and the number of 

Independent Directors is more than 50% 

of the total number of directors on the 

Board of the Company. 

The Current Policy is to have an 

appropriate mix of executive and 

independent directors to maintain the 

: : 14 : :

Sl. No. of Board Attendance 

No. Name of the Director Category Designation Meetings of each Director 

attended at last A.G.M 

1. Shri Y.S. Chowdary Promoter & Chairman 8 Yes 

Executive Director 

2. Shri G. Srinivasa Raju Executive Director Managing Director 8 Yes 

3. Shri J. Ramakrishnan Independent & Director 6 No 

Non-Executive Director 

4. Shri S. Hanumantha Rao Non-Executive Director Director 8 Yes 

5. Dr. K. Srinivasa Rao Independent & Director 1 No 


6. Shri B.Ramachandra Rao Independent & Director 7 Yes 


7. Shri B.P.Mandal IDBI Nominee* Director 8 No 

8. Shri S.Ramachandran IDBI Nominee* Director Not Applicable Not Applicable 

9. Shri Narayandas Auddy IFCI Nominee** Director 3 No 

10. Shri V.Udhayasankar IFCI Nominee** Director 3 Not Applicable 

11. Shri V.S.R. Murthy Executive Director*** WTD Not Applicable Not Applicable 

Change in Composition of Board of Directors since the date of last AGM held on 31.12.2007: 

* Shri. S.Ramachandran was appointed as Nominee Director from IDBI Limited with effect 

from 10th December, 2008 on the Board of the Company in place of Shri B.P.Mandal. 

** Shri. V.Udhayasankar was appointed as Nominee Director from IFCI Limited with effect 

from 28th April, 2008 on the Board of the Company in place of Shri Narayandas Auddy. 

*** Shri V.S.R. Murthy was appointed as Whole Time Director of theCompany w.e.f.29.01.2009. 

Sl. Name of the No. of Directorships No. of Committee positions 

No. Director in other companies held in other companies 

No. of No. of No. of 

Chairmanships Directorships Chairmanships 

: : 15 : : 

No. of 

Committee 

Memberships 

1 Shri Y.S. Chowdary 4 9 2 4 

2 Shri G. Srinivasa Raju 1 7 2 6 

3 Shri J. Ramakrishnan -- 1 -- 1 

4 Dr. K. Srinivasa Rao -- 1 2 2 

5 Shri S. Hanumantha Rao -- 5 2 8 

6 Shri B.Ramachandra Rao -- -- -- -- 

7 Shri S.Ramachandran -- 2 -- -- 

8 Shri V.Udhayasankar -- 2 -- -- 

9. Shri V.S.R. Murthy -- -- -- --


2. Board Procedure 

Your Company's Board of Directors meets atleast once a quarter in a year to review the 

quarterly results and other items on the Agenda and also on the occasion of the Annual 

Shareholders' Meeting. Whenever necessary, additional meetings were held. Committees 

of the Board usually meet the same day of the formal Board Meeting or as and when 

required. 

Eight (8) Board Meetings were held during the year 2007-08 and the gap between two 

meetings did not exceed four months. The dates on which the Board Meetings were held 

were as follows: 

30th July 2007, 30th October 2007, 27th November 2007, 31st December 2007, 28th 

January 2008, 28th April 2008, 21st May 2008 and 28th July 2008. 

Board Meetings are usually held at the Corporate Office of the Company. Notices of Board 

Meetings were sent to the Directors as required under Section 286 of the Companies Act, 

1956. Date of Board Meeting was communicated well in advance and the Agenda, 

explanatory notes were sent in advance to the Directors. 

The information as required under Annexure IA to Clause 49 was being made available to 

the Board. 

The Board periodically reviews compliance reports of all laws applicable to the Company. 

Steps were taken by the Company to rectify instances of non-compliance, if any. 

III. Audit Committee 

1. Scope of the Audit Committee 

The main objective of the Audit Committee of your Company is to monitor and effectively 

supervise the financial reporting process of your Company with a view to provide accurate, 

timely and proper disclosures. However, the scope of activities of the Audit Committee is 

as set out in Clause 49 of the Listing Agreements entered with the Stock Exchanges read 

with Section 292A of the Companies Act, 1956. The terms of reference of the Audit 

Committee are broadly as follows: 

1. Reviewing the adequacy of Internal Control Systems and the Internal Audit Reports 

and their compliance thereof; 

2. Overseeing of the Company's financial reporting process and the disclosures of its 

financial information; 

3. Holding periodic discussions with the Statutory Auditors and Internal Auditors of the 

Company concerning the accounts of the Company, internal control systems, scope 

of audit and observations of the Auditors/ internal Auditors; 

4. Reviewing with Management the quarterly and annual financial statements before 

submission to the Board; 

5. Recommending the board on any matter relating to the financial management of the 

Company, including Statutory & Internal Audit Reports; 

6. Recommending the appointment and removal of External Auditor, fixation of audit fee 

and also approval for repayment for any other services; 

7. Such other matters as may be necessary in course of performing their functions. 

2. Composition and Procedure of the Audit Committee 

The Audit Committee shall meet atleast four times in a year and not more than four 

months shall elapse between two meetings. 

: : 16 : :

The quorum for the audit committee shall be either two members or one third of the 

members whichever is higher and minimum of atleast two independent directors. 

The Audit Committee of your Company comprises four (4) members out of which three (3) 

are independent and non-executive directors and one (1) is non-executive director. Shri 

S.Hanumantha Rao, a director having financial and accounting knowledge and held five 

(5) meetings during the year. The details of the same are: 

No. of meetings held during the financial year: 5 (five) 

Sl. Name of Designation No. of Meetings 

No. the Member attended 

1. Dr. K.Srinivasa Rao Member & Chairman 1 

2. Shri S. Hanumantha Rao Member 5 

3. Shri J.Ramakrishnan Member 5 

4. Shri B.Ramachandra Rao Member 4 

Change in Composition of Audit Committee since the date of last AGM held on 

28.12.2006: 

There is no change in the Composition of Audit Committee since the date of last AGM held 

on 31.12.2007 

Dates of Audit Committee Meetings held: 

30th July 2007, 30th October 2007, 28th January 2008, 28th April 2008, and 28th July 2008 

The necessary quorum was present at the meetings. 

IV. Remuneration Committee 

1. Scope of the Remuneration Committee 

The Scope of the Remuneration Committee covers: 

a) Review the performance of the Managing Director, after considering the Company's 

performance. 

b) Recommends to the Board remuneration including salary, perquisites and commission 

to be paid to the Company's Managing Director. 

c) Finalise the perquisites package of the Managing Director within the overall ceiling. 

2. Composition and other details of the Remuneration Committee 

The Remuneration Committee of your Company comprises three (3) members, all of them 

are non-executive directors, the chairman of the committee being an independent director. 

The existing Committee comprises of: 

Sl.No. Name of the Member Designation 

1. Dr. K. Srinivasa Rao Member & Chairman 

2. Shri J.Ramakrishnan Member 

3. Shri S. Hanumantha Rao Member 

One Remuneration Committee Meeting was held on 28.04.2008 during the financial year 

2007-2008. 

: : 17 : :


3. Remuneration Packages paid to Executive Directors during the year 

Name Salary P.A. Commission/ Deferred Benefits Others Total 

Incentives P.A. (Perquisites) 

Rs. Rs. Rs. Rs. 

Shri G.Srinivasa Raju Rs.5,25,000/- - Rs.1,18,827/- - 6,43,827/- 

Shri Y.S. Chowdary Rs.60,00,000/- w.e.f. 01.04.2008 to 30.09.2008 Rs.60,00,000/- 

Remuneration Policy: 

The Remuneration Committee of Board of Directors of the Company generally decides and 

makes recommendations to the Board of Directors about the remuneration to be paid to the 

Directors and other Key Managerial Persons of the Company. The Remuneration Committee 

recommendations about the remuneration of Directors are subject to the approval of the Members 

of the Company and the remuneration of the key managerial persons is to be recommended by 

the remuneration committee to the Board 

Sitting Fee details: 

Sl. No Name of the Director Sitting fee paid During the year 2007-2008 

1 Dr. K. Srinivasa Rao Rs.6,000/- 

2 Shri J. Ramakrishnan Rs.33,000/- 

3 Shri B.Ramachandra Rao Rs.33,000/- 

4 Shri B.P.Mandal Rs.24,000/- 

5 Shri Narayandas Auddy Rs.9,000/- 

6 Shri V.Udhayasankar Rs.9,000/- 

Sitting fee will be paid at a rate of Rs.3000/- for attending each Meeting. 

V. Shareholders' Grievance Committee 

1. Scope of the Shareholder's Grievance Committee 

The Shareholders' Grievance Committee of your Company shall look into the redressing of 

shareholder and investor complaints like transfer of shares, non-receipt of balance sheet, 

non-receipt of declared dividend, etc. 

2. Constitution and Composition of the Shareholders' Grievance Committee 

The Shareholders' Grievance Committee of your Company comprises three (3) members. 

No Shareholders' Grievance Committee Meeting was held during the financial year 2007- 

2008 and all the grievances received by the Company from the members of the Company 

has been resolved by the Share Transfer Committee. 

The existing Committee consists of three directors. The details of the same are: 

Sl. Name of the Director Designation 

No. 

1. Shri J. Ramakrishnan Member & Chairman 

2. Shri Y.S.Chowdary Member 

3. Shri G.Srinivasa Raju Member 

: : 18 : :

3. Name and Designation of the Compliance Officer 

The name and designation of the Compliance Officer of your Company is Shri P.Apser 

Hussen, Company Secretary of your Company. 

4. No. of Shareholders Complaints received so far during the year 

Nature of queries/complaints Received Resolved Un resolved 

No.of requests for change of Address 33 33 - 

No.of requests for transmission 10 10 - 

Non receipt of share certificates/bonus shares 4 4 - 

Letters from Securities and Exchange Board of - - - 

India & Stock Exchanges 

Issue of Duplicate Share Certificates - - - 

Non receipt of demat conformation / rejections 13 13 

Others 15 15 - 

Total 75 75 - 

5. No. of Pending Transfers 

There are no share transfers pending for more than a fortnight. 

VI. 

Share Transfer Committee 

The share transfer committee comprises Shri Y.S.Chowdary, Shri G.Srinivasa Raju and 

Shri J. Ramakrishnan, being Shri G.Srinivasa Raju, Managing Director of your Company, as 

Chairman of the Committee. The role, terms of reference and the authority and powers of 

the Share Transfer Committee are in conformity with the provisions of the Companies Act, 

1956. During the year under review the Share Transfer Committee met 20 (Twenty) times. 

VII. Management Committee 

The Management Committee comprises Shri Y.S.Chowdary, Shri G.Srinivasa Raju and Shri 

J. Ramakrishnan. The role, terms of reference and the authority and powers of the 

Management Committee are in conformity with the provisions of the Companies Act, 1956. 

During the year under review the Management Committee met 4 (Four) times. 

VIII. Code of Conduct for the prevention of inside trading ; 

The Board has laid down a “Code of Conduct” for the prevention of “Insider Trading” in 

pursuance of the Securities and Exchange Board of India (Prohibnition of Insider Trading) 

Regulations, 1992 (Duly Amended). The Board Members and senior management personnel 

have afirmed the compliance with the code for the financial year 2007-08. 

: : 19 : :


IX. Annual General Body Meetings (AGMs') 

Details of Last three AGMS held 

Sl. No. of Annual Date of the Annual Location Time 

No. General Meeting General Meeting 

1. 19th A.G.M 31st December, 2007 Plot Nos. 10,11 & 12, Survey No.172, 10.00 A.M. 


Medak Dist, Andhra Pradesh. 

2. 18th A.G.M 28th December, 2006 Survey No.296/7/9, IDA Bollaram, 10.30 A.M. 

Jinnaram Mandal, Medak District, 

Andhra Pradesh. 

3. 17th A.G.M 14th December, 2005 Plot Nos. 10,11 & 12, Survey No.172, 10.00 A.M. 


Medak Dist, Andhra Pradesh. 

Details of Special Resolutions passed in the last thee Annual General Meetings: 

S.No AGM for the year Details of Special Resolution passed 

1. 2006-2007 (a) Enhancement of Managing Director's Remuneration and 

(b) To make any loan to and/or to give any guarantee to 

and/or to provide security Under Section 372A of the 

Companies Act, 1956 

2 2005-2006 Further Issue of equity shares of the Company under Section 

81(1A) of the Companies Act, 1956. 

3. 2004-2005 (a) Re-appointment of Shri G.Srinivasa Raju as Managing 

Director of the Company for a period of 5 years 

w.e.f.29.10.2005. 

(b) Further Issue of equity shares of the Company under 

Section 81(1A) of the Companies Act, 1956. 

(c) 

To make any loan to and/or to give any guarantee to 

and/or to provide security Under Section 372A of the 

Companies Act, 1956. 

: : 20 : :

Details of special resolutions passed in the last year through postal ballot and details 

of voting pattern. 

(A) The following resolutions were passed by the members of the Company through postal 

ballot on 7th June, 2007. The details are as follows: 

S.No Details of Resolution passed Details of voting Person who 

through postal ballot pattern conducted the 

postal ballot exercise 

1 Increase of authorized share No.of votes cast in 

capital of the Company from favour of the resolution 

Rs.115 Crores to Rs.155 Crores. - 1,33,04,857. 

No.of votes cast against 

the resolution - 50 

2 Issue of further equity shares of No.of votes cast 

the Company under Section 81 in favour of the 

(1A) of the Companies Act, resolution - 1,32,97,527 

1956 through preferential issue. No.of votes cast against 

the resolution - 450 

3 Issue of further equity shares of No.of votes cast 

the Company under Section in favour of the 

81(1A) of the Companies Act, resolution - 1,32,97,277 

1956 through global depository No.of votes cast against 

receipts. the resolution - 700 

4 Making investments in wholly No.of votes cast in 

owned subsidiaries under 

favour of the resolution 

Section 372A of the Companies - 1,32,96,827. 

Act, 1956 No.of votes cast against 

the resolution - 1,150 

Shri Y.Ravi Prasada 

Reddy, Practicing 

Company Secretary, 

ACS No.14580, 

CP No. 5360. 

(B) 

The following resolution was passed by the members of the Company through postal ballot 

on 31st December, 2007. The details are as follows: 

S.No Details of Resolution passed Details of voting Person who conducted 

through postal ballot pattern the postal ballot exercise 

1 To make any loan to and/or to No.of votes cast 

give any guarantee to and/or to in favour of the 

provide security, in connection resolution -20089901 

with a loan made by any other 

person to or other person by 

No.of votes cast 

and/or to acquire, by way of 

against the 

subscription, purchase or resolution - 500 

otherwise the securities of 

"M/s Alpha Ventures Limited, 

Cayman Islands and Sujana 

Holdings Limited, Dubai" (being 

associate companies) upto an 

amount of US$ 60.00 Million 

(US Dollars Sixty Million only) 

under Section 372A of the 

Companies Act, 1956. 

: : 21 : : 


Reddy, 

Practicing Company 

Secretary, 

ACS No.14580, 

CP No. 5360.


(C) 

The following resolutions were passed by the members of the Company through postal 

ballot on 27th June, 2008. The details are as follows: 

S.No Details of Resolution passed Details of voting Person who conducted 

through postal ballot pattern the postal ballot exercise 

1 Making an investment in No.of votes cast 

"Nuance Holdings Limited", in favour of the 

Hong Kong, under Section resolution - 

372A of the Companies 21576338. 

Act, 1956 

No.of votes cast 

against the resolution - 

13856 

2 To modify the sub clause No.of votes cast 

number 6 of Clause III (C) in favour of the 

(i.e. Other Objects Clause) of resolution - 

Memorandum and Articles of 21582228. 

Association of the Company and 

to carry on the business of No.of votes cast 

said sub clause 

against the 

resolution -7806 


Reddy, 

Practicing Company 

Secretary, 

ACS No.14580, 

CP No. 5360. 

Details of special resolutions which are proposed to be passed through postal ballot - 

are as follows: 

No sipecial resolution is proposed to be passed through postal ballot. 

X. Disclosures 

1. Materially Significant related party transactions: 

There are no materially significant related party transactions i.e. transactions, material in 

nature with its Promoters, the Directors or the Management, their subsidiaries or relatives 

etc., having potential conflict with the interests of the Company at large except as mentioned 

in Schedule 18 to the Annual Accounts for the year ended 30.09.2008. 

2. Details of Statutory Non-compliances: 

There have not been any non-compliance by the Company and no penalties or strictures 

imposed on the Company by the Stock Exchanges or SEBI or any Statutory Authority, on 

any material related to capital markets, during the last three (3) years. 

3. Management Discussion and Analysis Report 

Management Discussion and Analysis Report form part of this Annual Report and is in 

accordance with the requirements as laid down in Clause 49 of the Listing Agreement with 

Stock Exchanges. 

4. Details of directors seeking re-appointment at the forthcoming AGM 

(a) Shri J.Ramakrishnan, Director of the Company retires by rotation and being eligible, 

offers himself for re-appointment. 

: : 22 : :

(b) 

Shri J.Ramakrishnan has been on the Board of Directors since 25th July, 1995. 

Shri J.Ramakrishnan, retired as Principal Collector, Central Excise and Customs 

Department. He is having over 30 years of experience in Central Excise and Customs 

Department. 

Shri J.Ramakrishnan, presently holding the position of Director in Sujana Metal Products 

Limited. 

Shri B.Ramachandra Rao, Director of the Company retires by rotation and being eligible, 

offers himself for re-appointment. 

Shri B.Ramachandra Rao has been on the Board of Directors since 30th January, 

2006. 

Shri B.Ramachandra Rao has done M.A (Public Administration) and he had banking 

experience of 35 years at various senior levels. 

5. CEO&CFO Certification: 

Certification by Chief Executive Officer and Chief Financial officer of the Company as required 

under Clause 49 of the Listing Agreement is provided at the end of Corporate Governance 

Report. 

XI. Means of Communication 

1. Publication of Quarterly Financial Results in daily newspapers - Surya or Andhra Bhoomi & 

New Indian Express or Business Standard and the same will be updated in the Company's 

website at www.sujana.com. 

2. Furnishing the Quarterly Financial Results to Stock Exchanges in which Company's shares 

are listed. 

3. Sending Balance Sheet, Profit & Loss Account, Directors' Report & Auditors' Report to 

Shareholders through Post. 

XII. General Shareholder Information 

1. Details pursuant to 20th AGM 

1. Date 27.02.2009 

2. Time 10.00 A.M 

3. Venue Plot Nos.10, 11 & 12, Survey No.172, Bollaram Village, 

Jinnaram Mandal, Medak District, Andhra Pradesh. 

4. Financial Year 2007-2008 (consisting of 15 months from 01.07.2007 

to 30.09.2008) 

5. Book Closure Date 26.02.2009 (One day only) 

6. Dividend Payment Date Not Applicable 

2. Details pursuant to Listing of Securities 

a. Listing of Securities 

- Equity 

The Bombay Stock Exchange Limited, Mumbai 

National Stock Exchange of India Limited, Mumbai 

- Global Depository Receipts (GDRs) 

Luxembourg Stock Exchange (LuxSE) 

: : 23 : :


b. Stock Code 

BSE Script Code : 517224 

NSE Script Symbol : SUJANAUNI 

Demat ISIN Number in NSDL and CDSL for equity shares : INE216G01011 

3. Market Price Data 

Month 

Price in BSE during each month 

High (Rs.) Low(Rs.) Close (Rs.) 

July, 2007 18.65 15.80 17.30 

August, 2007 20.25 16.25 17.00 

September, 2007 22.00 17.00 18.10 

October, 2007 21.20 15.90 17.10 

November, 2007 18.30 15.80 16.50 

December, 2007 27.60 16.70 26.00 

January, 2008 28.90 16.20 16.50 

February, 2008 17.90 14.10 15.10 

March, 2008 14.95 09.80 11.65 

April, 2008 15.50 10.90 13.33 

May, 2008 14.24 11.60 12.15 

June, 2008 12.50 09.05 9.14 

July, 2008 11.88 08.00 10.52 

August, 2008 15.35 10.30 11.02 

September, 2008. 11.79 08.75 09.05 

SUIL Share Price 

60.00 

55.00 

50.00 

45.00 

40.00 

35.00 

30.00 

25.00 

20.00 

15.00 

10.00 

5.00 

0.00 

15550.99 

17.30 

17.00 

Comparision with BSE SENSEX 

15318.617291.1 19837.99 

18.10 

17.10 

19363.19 

20286.99 

16.50 

SUIL 

26.00 

17648.71 

17578.72 

16.50 

15.10 

15644.44 17287.31 

11.65 

13.33 

16415.57 

12.15 

13461.6 

14355.75 

14564.53 

9.14 

10.52 

11.02 

12860.43 

9.05 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

July 

August 

September 

MONTHS 

Sensex 

21000 

18000 

15000 

12000 

9000 

6000 

3000 

0 

BSE SENSEX 

: : 24 : :

4. Share Transfer System 

Your Company has appointed M/s. Bigshare Services Private Limited for dealing in with the 

shares of the Company in physical and electronic mode. Presently they are completing the 

process of transfer within a period of 10 to 15 days from the date of receipt, subject to the 

documents being valid and complete in all respects. 

5. Dematerialization of Shares 

89.83 % of the Company's Paid - up capital has been dematerialized upto 30.09.2008. The 

details a re as follows: 

Particulars Number of Shares % of share capital 

NSDL 4,66,64,152 37.69 

CDSL 6,45,74,335 52.14 

Physical 1,26,02,585 10.17 

Total 12,38,41,072 100.00 

6. Distribution of Shareholding 

As on 30th September, 2008, the Distribution of Shareholding was as follows: 

Range No. of % of No. of % of 

(Rs.) Shares Shareholding Shareholders Shareholders 

1. Upto 5,000 4272811 3.45 18192 70.71 

2. 5,001 - 10,000 3284572 2.65 3685 14.32 

3. 10,001 - 20,000 2792069 2.25 1690 6.57 

4. 20,001 - 30,000 1758320 1.42 662 2.57 

5. 30,001 - 40,000 1145432 0.92 312 1.21 

6. 40,001 - 50,000 1738667 1.40 359 1.40 

7. 50,001 - 1,00,000 3302247 2.67 429 1.67 

8. 1,00,000 and above 105546954 85.24 398 1.55 

Total 123841072 100.00 25727 100.00 

7. Outstanding GDR/ADR/Warrants or any convertible instruments, conversion date 

and impact on equity: -Nil- 

8. Shareholding pattern as on 30th September, 2008 

S. Category No.of No.of % to 

No. Holders Shares Equity 

1. Promoters and their Relatives 2 22276035 17.99 

2. Bodies Corporate 580 13786348 11.13 

3. Public 25139 30564251 24.68 

4. Foreign Bodies Corporate 2 3900000 3.15 

5. Financial Institutions/banks/MFs 3 5314438 4.29 

6 Custodians against Depository 1 48000000 38.76 

receipts 

Total 25727 123841072 100.00 

: : 25 : :


9. Plant Location 

1. LEC Division Plot Nos. 10, 11 & 12, Survey No.172, Bollaram 

Village, Jinnaram Mandal, Medak District, 

Andhra Pradesh. 

2. Domestic Appliances Plot No.1B, Survey No.308, 

Division 

Sri Venkateswara Co-operative, Industrial Estate, 

Jeedimetla, Hyderabad - 500 055, Andhra Pradesh. 

3. Steel Products Division Plot Nos. 128/A, Bollaram Village, Jinnaram Mandal, 

Medak District, Andhra Pradesh. 

4. Infrastructure Division No.18, Nagarjuna Hills, Panjagutta, 

Hyderabad - 500 082, Andhra Pradesh. 

10. Address for Correspondence 

Regd. Office: 

Plot Nos. 10, 11 & 12, Survey No.172, Bollaram Village, 

Jinnaram Mandal, Medak District, Andhra Pradesh. 

Corporate Office and Secretarial Department & 

Place of keeping the books of accounts. 

No.18, Nagarjuna Hills, Panjagutta, 


Ph: 23351882, 23351887. 

Registrars and Share Transfer Agents: 

Bigshare Services Private Limited, 

G-10, Left Wing, Amruta Ville, 

Opp: Yashoda Hospital, 

Raj Bhavan Road, Somajiguda, 


Phone No.040-23374967. 

Declaration in terms of amended Clause 49(1)(d)(ii) of Listing Agreement. 

It is hereby confirmed that all board members and senior management personnel have affirmed 

compliance with the code of conduct, laid down by the Board of Directors, for the financial year 2007-08. 

Place : Hyderabad G. SRINIVASA RAJU 

Date : 29.01.2009 Managing Director 

: : 26 : :

CEO & CFO CERTIFICATION 

We, G.Srinivasa Raju, Managing Director & Chief Executive Officer and Shri N.C.Krishna, Chief Finance 

Officer, to the best of our knowledge and belief, do hereby certify that 

1. We have reviewed financial statements and the Cash Flow Statement for the year and that to 

the best of our knowledge and belief: 

a) These statements do not contain any materially untrue statement or omit any material 

fact or contain statements that might be misleading; 

b) These statements together present a true and fair view of the Company's affairs and are 

in compliance with existing accounting standards, applicable laws and regulations. 

2. There are, to the best of our knowledge and belief, no transactions entered into by the Company 

during the year which are fraudulent, illegal or violative of the Company's code of conduct. 

3. We accept the responsibility for establishing and maintaining internal controls for financial 

reporting and that we have evaluated the effectiveness of internal control systems of the Company 

pertaining to financial reporting and we disclosed to the auditors and the Audit Committee, 

deficiencies in the design or operation of such internal controls, if any, of which we are aware 

and the steps they have taken or propose to take to rectify these deficiencies. 

4. We have indicated to the auditors and the Audit Committee: 

i) Significant changes in internal control over financial reporting during the year; 

ii) Significant changes in accounting policies during the year and that the same have been 

disclosed in the notes to the financial statements; and 

iii) Instances of significant fraud of which we have become aware and the involvement therein, 

if any, of the management or an employee having a significant role in the Company's 

internal control system over financial reporting. 

G. Srinivasa Raju N.C.Krishna 

Managing Director & Chief Executive Officer 

Chief Financial Officer 

Date : 29.01.2009 

Place : Hyderabad 

Auditors' Certificate on Corporate Governance 

To 

The Members of Sujana Universal Industries Limited, 

We have examined the compliance conditions of Corporate Governance by Sujana Universal Industries 

Ltd., Hyderabad for the period ended 30th September 2008, as stipulated in Clause 49 of the Listing 

Agreement of the said Company with Stock Exchanges. 

The compliance of conditions of Corporate Governance is the responsibility of the Company's 

management. Our examination was limited to procedures and implementation thereof, adopted by 

the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither 

an audit nor an expression of opinion on the financial statements of the Company. 

In our opinion and to the best of our knowledge and according to the explanations given to us, We 

certify that the Company has complied with the conditions of Corporate Governance as stipulated in 

the above mentioned Listing Agreement. 

We state that no investor grievances are pending for a period exceeding one month against the 

Company as per the records maintained by the Investor's Grievance Committee. 

We further state that such compliance is neither an assurance as to the future viability of the Company 

nor the efficiency or effectiveness with which the management has conducted the affairs of the 

Company 

Place: Hyderabad 

for M/s. T.RAGHAVENDRA & ASSOCIATES 

Dated:29.01.2009 CHARTERED ACCOUNTANTS 

T.RAGHAVENDRA 

: : 27 : :


AUDITORS’ REPORT 

We have audited the attached Balance Sheet of SUJANA UNIVERSAL INDUSTRIES LIMITED of 

September, 2008. The Profit and Loss Account for the Period ended 30th September 2008 

annexed thereof and the Cash Flow Statement of the Company for the period ended on that 

date. annexed thereto. These financial statements for the responsibility of the Company’s 

management. Our responsibility is to express an opinion on these financial statements based 

on our audit. 

1. We conducted our audit in accordance with auditing standards generally accepted in India. 

These Standards require that we plan and perform the audit to obtain reasonable assurance 

about whether the financial statements are free of material misstatement. An audit includes 

examining, on a test basis, evidence supporting the amounts and disclosures in the financial 

statements. An audit also includes assessing the accounting principles used and significant 

estimates made by management, as well as evaluating the overall financial statement 

presentation. We believe that our audit provides a reasonable basis for our opinion. 

2. As required by the Companies (Auditor’s Report) Order. 2003 and amended by the 

Companies (Auditor’s Report) (Amendment) Order. 2004 issued by the Central Government 

in terms of sub-section (4A) of Section 277 of the Companies Act. 1956. we enclose in the 

Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. 

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

(a) We have obtained all the information and explanations which, to the best of our 

knowledge and belief, were necessary for the purpose of our audit. 

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

Company so for as appears from our examination of those books. 

(c) The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt 

with by this report are in agreement with the books of account. 

(d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow 

Statement dealt with by this report comply with the Accounting Standards referred to 

in sub-section (3C) of Section 211 of the Companies Act, 1956; 

(e) On the basis of written representations received from the directors of the Company, 

as on 30th September 2008. and taken on record by the Board of Directors, we 

report that none of the directors are disqualified from being appointed as a director of 

the company in terms of Section 274 of the Companies Act, 1956 on the said date. 

(f) In our opinion and to the best of our information and according to the explanation 

given to us, the said accounts, read together with the notes thereon give the information 

required by the Companies Act, 1956. in the manner so required and give a true and 

fair view in conformity with the accounting principles generally accepted in India. 

i) In so far as it relates to the Balance Sheet, of the state of affairs of the Company 

as at 30th September 2008. 

ii) In so far as it relates to the Profit and Loss Account, of the Profit of the Company 

for the period 1st July 2007 to 30th September 2008 

and 

iii) In so far as it relates to Cash Flow Statement, of the cash flows for the period 

ended on that date. 

For T. RAGHAVENDRA & ASSOCIATES 

Chartered Accountants 


Date : 10.12.2008 

T. RAGHAVENDRA 

: : 28 : :

Annexure referred to in our report of even date on the accounts for the period 

ended 30th September 2008 

1. a. The Company has maintained proper records showing full particulars including 

quantitative details and situation of the fixed assets. 

b. The assets are physically verified, in phases, by the Management during the year as 

per the regular programme of verification, which in our opinion, is reasonable having 

regard to the size of the company and the nature of its assets. No material discrepancies 

have noticed on such verification. In respect of certain class of assets, verification of 

which is in progress, discrepancies if any noticed, will be dealt with approximately 

later. 

c. The assets disposed off during the year are not substantial and therefore do not 

affect the going concern status of the company. 

2. a. The stock of raw materials, stores, spare parts and finished goods other than in 

transit have been physically verified during the year by the Management, In our 

opinion the frequency of verification is reasonable. 

b. In our opinion and according to the information and explanations given to us the 

procedures of physical verification of inventory followed by the management are 

reasonable and adequate in relation to the size of the company and the nature of its 

business. 

c. In our opinion the company has maintained proper records of inventory. The 

discrepancies noticed on verification between the physical stocks and the book records 

were not material and have been properly dealt with in the books of account. 

3. a. Accounting to the information and explanations given to us, the company has not 

taken any loans from the companies, firms or other parties listed in the register 

maintained under Section 301 of the companies Act. 1956. 

b. According to the information and explanations given to us, the Company has not 

granted any loans to the Companies, firms or other parties listed in the register 

maintained under Section 301 of the Companies Act. 1956. 

c. The Company has not given any loans or advances in the nature of loans. 

4. In our opinion and according to the information and explanations given to us, there are 

adequate internal control procedures commensurate with the size of the company and the 

nature of its business, with regard to purchase of inventory and fixed assets and for the 

sale of goods and services. During the course of our audit, no major weakness has been 

noticed in the internal control system. 

5. a. Based on the audit procedures applied by us and according to the information and 

explanations provided by the management, we are of the opinion that the contracts 

or arrangements that need to the be entered in the register maintained in pursuance 

of Section 301 of the Companies Act. 1956 have been properly entered in the said 

register. 

b. In our opinion and according to the information and explanations given to us, the 

transactions entered in the register maintained under Section 301 and exceeding 

during the financial year by Rupees five lakhs in respect of each party have been 

made at prices which are reasonable having record to the prevailing market prices at 

the relevant time. 

: : 29 : :


6. The Company has not accepted any deposits from the public within the meaning of Sections 

58A. 58AA or any other relevant provisions of the Companies Act. 1956 and the Companies 

(Acceptance of Deposits) Rules, 1975 framed there under. 

7. The Company has an internal audit system, which in our opinion is commensurate with its 

size and nature of its business. 

8. We have broadly reviewed the books of account maintained by the Company pursuant to 

the Rules 209(1)(d) of Companies Act. 1956 for maintenance of cost records and are of 

the opinion that, prima facie, the prescribed accounts and records have been made and 

maintained. 

9. a. According to the information and explanations give to us and the records of the 

Company examined by us, the Company is generally regular in depositing with 

appropriate authorities undisputed statutory dues including provident fund, employees’ 

state insurance, Customs Duty, Excise Duty and other material statutory dues as 

applicable with the appropriate authorities. According to the information and 

explanations given to us, no undisputed amounts payable in respect of the aforesaid 

due were outstanding as at 30th June, 2006 for a period of more than six months 

from the date of becoming payable. 

b. According to the information and explanations give to us and the records of the 

Company examined by us, the disputed statutory dues that have not been deposited 

on account of matters pending before appropriate authorities are as follows : 

Rs. in lakhs 

Sales Tax 780.74 2002-03 Company has preferred on appeal in the High Court. 

904.93 2003-04 Company has preferred on appeal in the High Court. 

1428.82 2004-05 Company has preferred on appeal in the High Court. 

Income Tax 185.09 Company has preferred and appeal in the appellate tribunal. 

Customs & Central Excise 570.36 Company has preferred an appeal in the CESTAT. 

10. The Company does not have accumulated losses as at 30th September 2008 and is has 

not incurred any cash losses in the financial year ended on that or in the immediately 

preceding financial year. 

11. According to the information and explanations given to us and the records of the Company 

examined by us, the Company has not defaulted in repayment of dues to financial institution 

and banks as per the One Time Settlement proposal with the financial institutions and / or 

banks. 

12. According to the information and explanations given to us, the Company has not granted 

any loans and advances on the basis of security by way of pledge of shares, debentures 

and other securities. 

13. The provisions of any special statute applicable to chit fund / mutual benefit fund / societies 

are not applicable to the company. 

14. As the Company is not dealing or trading in shares, debentures and other investments 

paragraph (xiv) of the Companies (Auditors Report) Order. 2003 is not applicable to the 

company for the year. 

: : 30 : :

15. In my opinion and according to the information and explanation given to us, the terms and 

conditions on which the company has given guarantee for loan taken by other company 

from bank are not prejudicial to the interest of the company. 

16. The company has not raised any new term loans during the year. The term loans outstanding 

at the beginning of the year have been applied for the purposes for which they were 

raised. 

17. According to the information and explanations give to us and an overall examination of the 

balance sheet of the company, we report that no funds raised on a short-term basis which 

have been used for long-term investment, and vice versa. 

18. The Company has not issued any debentures during the year and therefore paragraph 

4(xix) of the order is not applicable. 

19. The Company had made preferential allotment of shares to parties and companies covered 

in the register maintained under Section 301 of the Companies Act during the year and the 

price at which the shares have been issued is not prejudicial to the interest of the Company. 

20. In our opinion, and according to the information and explanations given to us and as far as 

we could ascertain no personal expenses have been charged to the revenue account. 

21. In our opinion, and according to the information and explanations given to us, the Company 

is not covered within the definition of Sick Industrial Company as contained in Section 3(I) 

(O) of the Sick Industrial Companies (Special Provisions) Act. 1985. 

22. According to the information and explanations given to us there were no damaged goods 

in the case of goods purchased for re-sale. 

23. During the course of my examinations of the books and records of the company, carried 

out in accordance with the generally accepted auditing practices in India, and according to 

the information and explanations given to me, I have neither come across any instance of 

fraud on or by the company, noticed or reported during the year, nor have I been informed 

of such case by the management. 




Date : 10.12.2008 


: : 31 : :


BALANCE SHEET AS AT 30TH SEPTEMBER, 2008 

: : 32 : : 

(Amount in Rupees) 

As At 

As At 

Particulars Sch. 30.09.2008 30.06.2007 

Ref. (15 Months) (12 Months) 

SOURCES OF FUNDS 

1 Shareholders’ Funds 

A) Share Capital 1 1,482,030,720 1,083,238,190 

B) Share Application Money — 100,450,000 

C) Reserves And Surplus 2 3,471,713,797 2,819,729,002 

Sub-total 4,953,744,517 4,003,417,192 

2 Deferred Tax Liability 334,671,330 312,296,330 

3 Loan Funds 

A) Secured Loans 3 1,575,689,355 1,725,474,458 

B) Unsecured Loans — — 

Sub-total 1,575,689,355 1,725,474,458 

Total 6,864,105,202 6,041,187,980 

APPLICATION OF FUNDS 

1 Fixed Assets 4 

A) Gross Block 3,411,030,658 3,014,466,106 

Less : Depreciation 1,394,237,776 1,173,951,998 

Net Block 2,016,792,882 1,840,514,108 

B) Capital Work In Progress 116,342,029 98,470,076 

2,133,134,911 1,938,984,184 

2 Investments 5 100,774,245 14,944,980 

3 Current Assets, Loans And Advances 

A. Current Assets 

A) Inventories 6 1,032,925,644 403,680,644 

B) Sundry Debtors 7 2,313,198,336 2,947,037,526 

C) Cash And Bank Balances 8 654,691,596 15,956,563 

B. Loans And Advances 9 2,197,299,768 1,796,110,634 

Sub-total 6,198,115,344 5,162,785,367 

Less:Current Liabilities And Provisions 10 

A. Current Liabilities 1,528,875,497 997,335,111 

B. Provisions 39,043,801 78,191,440 

Sub-total 1,567,919,298 1,075,526,551 

Net Current Assets 4,630,196,046 4,087,258,816 

Total 6,864,105,202 6,041,187,980 

Accounting Policies 17 

Notes on Accounts 18 

Schedules 1 to 10, 17 & 18 Refered to above an integral part of this Balance Sheet 

As per our report of even date 

For and on behalf of the Board 

T. Raghavendra & Associates 

Chartered Accountant 

T. Raghavendra Y.S. Chowdary G. Srinivasa Raju 

Chairman Managing Director 

Place: Hyderabad Place: Hyderabad P. Apser Hussen 

Date : 10.12.2008 Date : 10.12.2008 Company Secretary

PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED 30TH SEPTEMBER, 2008 


For The 

For The 

Sch. Year Ended Year Ended 

Particulars Ref. 30.09.2008 30.06.2007 

(15 Months) (12 Months) 

I 

II 

INCOME 

Sales 11 11,728,392,204 9,090,791,756 

Other Income 12 81,540,398 49,021,719 

Increase/(Decrease) In Stocks 13 607,226,678 255,827,202 

Total 12,417,159,280 9,395,640,677 

Expenditure 

Material Consumed And Bought Out Goods 14 11,097,904,783 8,334,425,433 

Manufacturing, Administrative And 

Selling Expenses 15 339,562,423 273,725,127 

Depreciation 279,619,076 210,614,563 

Financial Expenses 16 354,560,110 238,515,848 

: : 33 : : 

12,071,646,392 9,057,280,971 

III Profit before Taxation 345,512,888 338,359,706 

Profit Before Taxation 345,512,888 338,359,706 

A) Provision For Income Tax 34,500,000 74,790,268 

B) Provision For Deferred Tax Liability 22,375,000 37,975,808 

C) Provision For Dividend Tax 517,692 414,032 

C) Provision For Fringe Benefit Liability 980,859 550,940 

PROFIT AFTER TAXATION 287,139,337 224,628,658 

IV Add/(Less):Prior Year Adjustments/ 

Exordinary Exp.: (57,405,001) (6,612,414) 

Add:Balance Of Profit Brought Forward 1,227,215,123 1,011,635,079 

From Earlier Years 

V PROFIT AVAILABLE FOR APPROPRIATION 1,456,949,459 1,229,651,323 

Proposed Dividend On Cumulative 3,045,250 2,436,200 

Redeemable Preference Shares 

VI BALANCE OF PROFIT 1,453,904,209 1,227,215,123 



Nominal Value of each Share in Rupees 10 10 

Schedules 11 to 18 Refered to above form an integral part of this Profit & Loss Account 










SCHEDULES FORMING PART OF BALANCE SHEET AS AT 30.09.2008 


Particulars As At As At 

30.09.2008 30.06.2007 

SCHEDULE - 1 

Share Capital 

Authorised 

13,00,00,000 Equity Shares of Rs. 10/ Each 1,300,000,000 1,300,000,000 

25,00,000 Cumulative Redemable Preference 250,000,000 250,000,000 

Shares of Rs.100/-each 

1,550,000,000 1,550,000,000 

Issued And Subscribed 

12,38,41,072 Equity Shares of Rs.10/- Each 1,238,410,720 839,618,190 

(Previous Year 8,39,61,819 Equity Shares) 


Shares of Rs.100/- Each 

1,482,030,720 1,083,238,190 

Paid-up 

12,38,41,072 Equity Shares of Rs.10/- Each 1,238,410,720 839,618,190 

(Previous Year 8,39,61,819 Equity Shares) 


Shares Of Rs.100/- Each 

Total 1,482,030,720 1,083,238,190 

SCHEDULE - 2 

Reserves And Surplus 

1. Capital Reserve 2,000,000 2,000,000 

2. General Reserve 166,782,657 166,782,657 

3. Profit and Loss Account 1,453,904,209 1,227,215,123 

4. Share Premium Account 1,847,036,584 1,421,305,798 

(Net of GDR Issue Expenses) 

5. Revaluation Reserve 1,990,347 2,425,424 

Total 3,471,713,797 2,819,729,002 

SCHEDULE - 3 

Secured Loans 

1. Term Loan 660,578,105 1,237,373,630 

2. Working Capital Loan 911,375,542 486,923,090 

3. H P Loans 3,735,708 1,177,738 

Total 1,575,689,355 1,725,474,458 

: : 34 : :

SCHEDULE - 4 : FIXED ASSETS 

GROSS BLOCK DEPRECIATION NET BLOCK 

PARTICULARS As on As on Upto For the on Upto As on As on 

01.07.2007 Additions Deletions 30.09.2008 01.07.2007 year deletions 30.09.2008 30.09.2008 30.06.2007 

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 

1. Land 8,116,261 — — 8,116,261 — — — — 8,116,261 8,116,261 

2. Buildings 112,866,087 1,719,620 — 114,585,707 36,914,541 4,749,767 — 41,664,308 72,921,399 75,951,546 

3. Plant & Machinery 2,773,379,079 574,766,250 190,519,709 3,157,625,621 1,060,850,182 264,726,795 60,464,653 1,265,112,324 1,892,513,297 1,712,528,897 

4. Electrical Installations 43,246,506 4,848,441 — 48,094,947 25,104,454 4,265,236 — 29,369,690 18,725,257 18,142,052 

5. Office Equipments 24,996,327 255,128 — 25,251,455 15,701,008 2,604,897 — 18,305,905 6,945,550 9,295,319 

6. Testing Equipment 10,104 — — 10,104 7,612 40 — 7,652 2,452 2,492 

7. Erp 20,000,000 — — 20,000,000 20,000,000 — — 20,000,000 — — 

8. Furniture & Fixtures 8,378,735 76,400 — 8,455,135 3,714,096 638,681 — 4,352,777 4,102,358 4,664,639 

9. Vehicles 23,121,353 5,418,422 — 28,539,775 11,454,755 3,052,068 — 14,506,823 14,032,952 11,666,595 

10.Mis. Equipments 351,654 — — 351,654 205,346 16,668 — 222,014 129,640 146,310 

T O T A L 3,014,466,106 587,084,261 190,519,709 3,411,030,659 1,173,951,994 280,054,152 60,464,653 1,393,541,493 2,017,489,166 1,840,514,111 

Less : Revaluation Reserve 435,076 

written back 279,619,076 

: : 35 : :





30.09.2008 30.06.2007 

SCHEDULE - 5 

INVESTMENTS 

In Subsidiary Companies (Unquoted) 

PAC Ventures Pte. Ltd. Singapore 84,891,905 2,112,480 

Nuance Holdings Limited, Hong Kong 2,602,564 — 

Sun Trading Ltd., Cayman Islands 447,276 — 

Sujana Holdings Ltd., Dubai 12,832,500 12,832,500 

100,774,245 14,944,980 

SCHEDULE - 6 

INVENTORIES (as taken, Valued and Certified 

by the Management) 

1. Raw Material 95,616,600 65,132,194 

2. Semi-Finished Goods 8,594,408 4,882,701 

3. Finished Goods 918,228,979 314,714,008 

4. Stock of Consumables 10,485,657 18,951,741 

Total 1,032,925,644 403,680,644 

SCHEDULE - 7 

SUNDRY DEBTORS (Unsecured-Considered Good) 

1. Debts Outstanding not more 

Than Six Months 2,283,809,841 2,917,609,960 

2. Other Debts 29,388,495 29,427,566 

Total 2,313,198,336 2,947,037,526 

SCHEDULE - 8 

CASH AND BANK BALANCES 

1. Cash on Hand 13,326,273 4,086,856 

2. Balances with Schedule Banks 287,789 147,325 

- In Current Accounts 1,271,761 800,889 

- At Euram Bank, Vienna 639,678,594 9,185,143 

- As Margin Money 127,179 1,736,350 

Total 654,691,596 15,956,563 

: : 36 : :




30.09.2008 30.06.2007 

SCHEDULE - 9 

LOANS AND ADVANCES 

(Unsecured-considered Good) 

1. Advance to Suppliers 870,777,331 744,481,760 

2. Advance to Staff 2,550,942 3,196,014 

3. Other Advances 1,133,043,705 868,685,869 

4. Advances to Subsidiary Companies 49,654,150 137,957,170 

5. Deposits 121,510,273 35,804,407 

6. Prepaid Expenses 119,610 163,368 

7. Excise Balance 16,699,674 3,215,288 

8. Tax Deducted at Source 2,944,083 2,606,758 

Total 2,197,299,768 1,796,110,634 

SCHEDULE - 10 

CURRENT LIABILITIES AND PROVISIONS 

A. Current Liabilities 

1. Creditors for Supplies and Others 1,158,465,138 751,397,281 

2. Creditors for Services and Expenses 140,844,216 84,968,000 

3. Other Liabilities 152,451,108 74,638,980 

4. Advance from Customers 39,822,094 56,440,071 

5. Interest Accrued but not Due 24,037,295 28,234,074 

6. Capital Creditors 10,563,463 - 

7. TDS Payable 2,692,183 1,656,705 

Sub-Total 1,528,875,497 997,335,111 

B. PROVISIONS 

1. Proposed Dividends 3,045,250 2,436,200 

2. Provision for Income-Tax 34,500,000 74,790,268 

3. Provision for Dividend Tax 517,692 414,032 

4. Provision for Fringe Benefit Tax 980,859 550,940 

Sub-Total 39,043,801 78,191,440 

Total 1,567,919,298 1,075,526,551 

: : 37 : :


SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 30.09.2008 


Particulars For The For The 

Year Ended 

Year Ended 

30.09.2008 30.06.2007 

SCHEDULE-11 

Sales 

1. Sales - Indigenous 10,472,844,670 8,364,598,395 

- Exports 1,255,547,534 726,193,361 

Total 11,728,392,204 9,090,791,756 

SCHEDULE-12 

Other Income 

1. Interest Earned 24,786,649 25,935,542 

2. Jobwork Income 10,709,458 9,003,356 

3. Miscellaneous Income 208,222 5,129,821 

4. Excess Provisions made Written Back 20,767,791 6,915,019 

5. Rent Received 135,000 — 

6. Commissions Received 406,962 2,037,981 

7. Profit on Sale of Assets 319,074 — 

8. Foreign Exchange Fluctuations 24,207,242 — 

Total 81,540,398 49,021,719 

SCHEDULE - 13 

Increase/(Decrease) In Stocks 

Opening Stock 



Sub-Total 319,596,709 63,769,507 

Closing Stock 



Sub-Total 926,823,387 319,596,709 

Increase/(Decrease) In Stocks 607,226,678 255,827,202 

SCHEDULE - 14 

Material Consumed And Bought-out Goods 

Opening Stock of Material 84,083,935 73,961,526 

Add: Purchase of Material 2,737,364,945 8,344,547,842 

2,821,448,880 8,418,509,368 

Less: Closing Stock of Material 106,102,257 84,083,935 

Raw Material Consumed 2,715,346,623 8,334,425,433 

Add: Bought out Goods 8,382,558,160 — 

Total Materials Consumed 11,097,904,783 8,334,425,433 

Total 11,097,904,783 8,334,425,433 

: : 38 : :



Particulars For The For The 

Year Ended 

Year Ended 

30.09.2008 30.06.2007 

SCHEDULE - 15 

Manufacturing, Administrative And Selling Expenses 

Power and Fuel 166,649,316 108,451,521 

Machinery Maintainance 5,328,688 5,979,210 

Job Work Expenses 21,042,727 6,327,208 

Staff and Workers Welfare 1,752,241 2,241,377 

Repairs to Buildings 249,287 594,453 

Salaries and Wages 39,081,083 33,473,319 

Bonus to Employees 1,909,267 826,885 

Director’s Remuneration 6,495,000 312,147 

Contribution to ESI and PF 2,360,779 1,030,581 

Insurance 851,220 1,624,574 

Printing and Stationery 1,090,608 1,093,580 

Postage, Telegrams and Telephones 2,201,738 1,813,298 

Travelling and Conveyance - General 4,009,560 3,128,788 

Travelling and Conveyance - Directors 414,499 190,816 

Travelling - Foreign 14,400 49,313 

Professional Charges 34,371,556 15,446,623 

Rent, Rates & Taxes 3,740,044 5,099,405 

Auditors Remuneration 

- Audit Fees 125,000 75,000 

- Tax Audit Fees 25,000 15,000 

- Others 44,944 — 

Foreign Exchange Fluctuations — 54,446,190 

Miscellaneous Expenses 21,851,266 5,585,256 

Carriage Outwards 3,318,604 1,269,635 

Commission & Discount 468,508 1,410,292 

Meeting and Conference Expenses 254,567 193,833 

Advertisement Expenses 3,648,462 12,305,032 

Business Development Expenses 1,302,736 1,232,673 

GDR Issue Expenses — 9,509,118 

Loss on Sale of Fixed Assets 16,961,323 — 

Total 339,562,423 273,725,127 

SCHEDULE - 16 

Financial Expenses 

Bank Charges 18,867,183 12,960,523 

Interest on Term Loans 234,327,656 185,393,620 

Interest on Working Capital Loan 59,707,881 11,362,950 

Interest to Others 18,663,620 1,459,087 

Other Financial Charges 22,993,771 27,339,667 

Total 354,560,111 238,515,847 

: : 39 : :


SCHEDULE 17: 

SIGNIFICANT ACCOUNTING POLICIES 

1. Basis of Preparation of Financial Statements 

The financial statements have been prepared and presented under the historical cost 

convention on the accrual basis of accounting in accordance with the Generally Accepted 

Accounting Principles (GAAP) in India and comply with the Accounting Standards ("AS") 

issued by the Institute of Chartered Accountants of India ("ICAI") and also in Accordance 

with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 

1956 and other relevant provisions of the Companies Act, 1956, to the extent applicable. 

The financial statements are presented in Indian rupees. 

2. Use of Estimates 

The preparation of financial statements in conformity with Indian GAAP requires management 

to make estimates and assumptions that affect the reported amounts of assets and liabilities 

and disclosure of contingent liabilities on the date of the financial statements. Actual results 

could differ from those estimates. Any revision to accounting estimates is recognised 

prospectively in current and future periods. 

3. Fixed Assets and Depreciation 

Fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of 

fixed assets comprises the purchase price (net of rebates and discounts) and any other 

directly attributable costs of bringing the assets to working condition for their intended 

use. Borrowing costs directly attributable to acquisition of those fixed assets which 

necessarily take a substantial period of time to get ready for their intended use are 

capitalized. 

Advances paid towards acquisition of Fixed Assets outstanding at each Balance Sheet date 

and the cost of Fixed assets not ready for their intended use before such date are disclosed 

as capital work-in-progress. 

Depreciation on fixed assets is provided using the straight-line method as per the rates 

prescribed in Schedule XIV to the Companies Act, 1956. The rates of depreciation prescribed 

in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the 

management's estimate of the useful life of a Fixed Asset at the time of acquisition of the 

Asset or of the remaining useful life on a subsequent review, is shorter than envisaged in 

the aforesaid schedule, depreciation is provided at a higher rate based on the management's 

estimate of the useful life / remaining useful life. 

Depreciation is calculated on a pro-rata basis from/upto the date the assets are purchased 

/sold. An amount of Rs.6,96,283 being the depreciation amount on revalued assets in the 

earlier years has been reduced from Depreciation reserve and revaluation reserve. 

4. Investments 

Investments are classified as current or long-term in accordance with Accounting Standard 

13 on "Accounting for Investments. 

Current Investments are stated at lower of cost and fair value. Any reduction in the carrying 

amount and any reversals of such reductions are charged or credited to the Profit and Loss 

Account. 

: : 40 : :

The investments in fully owned subsidiaries are carried out at the cost of acquisition as the 

same are long term investments. 

5. Revenue Recognition 

Revenue is recognized when it is earned and to the extent that it is probable that the 

economic benefits will flow to the company and the revenue can be reliably measured. 

Revenue from sale of goods is recognized on delivery of the products, when all significant 

contractual obligations have been satisfied, the property in the goods is transferred for a 

price, significant risks and rewards of ownership are transferred to the customers and no 

effective ownership is retained. 

Sales are net of sales returns and trade discounts. Export turnover includes related export 

benefits. Excise duty and VAT are recovered is presented as a reduction from Gross turnover. 

Interest revenue on Fixed Deposits are recognized on accrual basis. 

6. Inventories 

Inventories are valued at the lower of Cost and Net Realizable value. Cost of Inventories 

comprise all costs of purchase, costs of conversion and other costs incurred in bringing the 

inventories to their present location and condition. 

Cost is arrived at, 

a) In case of Raw materials and other trading products on weighted average cost method. 

b) In case of stores and spares on weighted average cost method. 

c) In case of Work in Process and Finished Goods, includes material cost, labour, 

manufacturing overheads. Excise duty in respect of finished goods lying within the 

factory is excluded in valuation of Inventories. 

Net realizable value is the estimated selling price in the ordinary course of business, 

Less estimated costs of completion to make the sell. 

7. Employee Benefits 

Short-term employee benefits (benefits which are payable within twelve months after the 

end of the period in which the employees render service) are measured at cost. 

Long-term employee benefits (benefits which are payable after the end of twelve months 

from the end of the period in which the employees render service) and post employment 

benefits (benefits which are payable after completion of employment) are measured on a 

discounted basis by the Projected Unit Credit Method on the basis of annual third party 

actuarial valuations. 

Contributions to Provident Fund, a defined contribution plan are made in accordance with 

the statute, and are recognized as an expense when employees have rendered service 

entitling them to the contributions. 

The gratuity benefit obligations recognized in the Balance Sheet represents the present 

value of the obligations as reduced by the fair value of plan assets. Any asset resulting 

from this calculation is limited to the discounted value of any economic benefits available 

in the form of refunds from the plan or reductions in future contributions to the plan. 

: : 41 : :


The Company has provided an amount of Rs.11.82 lakhs towards gratuity which is higher 

than the Actuarial valuation. 

8. Foreign Currency Transactions 

Foreign currency transactions are recorded in the reporting currency at the exchange 

rates prevailing on the date of the transaction. 

Exchange differences arising on the settlement of monetary items or on reporting company's 

monetary items at rates different from those at which they were initially recorded during 

the year, or reported in previous financial statements, are recognized as income or as 

expenses in the year in which they arise 

Non-monetary items such as investments are carried at historical cost using the exchange 

rates on the date of the transaction. 

Closing Monetary Foreign Current assets and current liabilities have been re-instated in 

the reporting currency at the exchange rate prevailing on Balance Sheet date, in accordance 

with Accounting Standard 11 on "The Effects of changes in Foreign Exchange Rates" The 

difference arising on these transactions being charged/revenue to Profit and Loss Account. 

9. Taxes on Income 

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting 

for Taxes on Income". Taxes comprise both current and deferred tax. Current tax is measured 

at the amount expected to be paid/recovered from the revenue authorities, using the 

applicable tax rates and laws. 

Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to 

future economic benefits in the form of adjustment of future income tax liability, is considered 

as an asset if there is convincing evidence that the Company will pay normal tax after the 

tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is 

probable that the future economic benefit associated with it will flow to the Company and 

the asset can be measured reliably. 

The tax effect of the timing differences that result between taxable income and accounting 

income and are capable of reversal in one or more subsequent periods are recorded as a 

deferred tax asset or deferred tax liability. 

Deferred tax assets and liabilities are recognized for future tax consequences attributable 

to timing differences. They are measured using the substantively enacted tax rates and 

tax regulations. 

The carrying amount of deferred tax assets at each balance sheet date is reduced to the 

extent that it is no longer reasonably certain that sufficient future taxable income will be 

available against which the deferred tax asset can be realized. 

Fringe Benefit Tax (FBT) payable under the provisions of section 115WC of the Income Tax 

Act, 1961 is in accordance with the Guidance Note on "Accounting for Fringe Benefits Tax" 

issued by the ICAI regarded as an additional income tax and considered in determination 

of profits for the year. 

Tax on distributed profits payable in accordance with the provisions of Section 115O of the 

Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate 

Dividend Tax" regarded as a tax on distribution of profits and is not considered in 

determination of profits for the year. 

: : 42 : :

10. Earnings per Share 

The Company reports basic and diluted Earnings Per Share (EPS/DEPS) in accordance with 

Accounting Standard 20 on "Earnings per share". Basic EPS is computed by dividing the 

net profit or loss for the year by the weighted average number of equity shares outstanding 

during the year. 

Diluted EPS is computed by dividing the net profit or loss for the year by the weighted 

average number of equity shares outstanding during the year as adjusted for the effects of 

all dilutive potential equity shares from the exercise of Convertible Share Warrants of unissued 

share capital, except where the results are anti-dilutive. 

11. Leases 

Leases under which the Company assumes substantially all the risks and rewards of 

ownership are classified as finance leases. Such assets acquired on or after 1 April 2001 

are capitalized at the fair value or the present value of minimum lease payments at the 

inception of the lease, whichever is lower. 

Lease income from assets given on operating lease is recognized as income in the statement 

of Profit & Loss account. Lease payments for assets taken on operating lease are recognized 

as expense in the statement of Profit & Loss account. 

12. Segment Reporting 

Disclosure is made as per the requirements of the standard. Details have furnished under 

item No.18 of Schedule 18 Notes on Accounts. 

13. Impairment of assets 

The Company assesses at each Balance Sheet date whether there is any indication that 

any assets forming part of its cash generating units may be impaired. If any such indication 

exists, the Company estimates the recoverable amount of the asset. If such recoverable 

amount of the asset or the recoverable amount of the cash generating unit to which the 

asset belongs to is less than its carrying amount, the carrying amount is reduced to its 

recoverable amount. The reduction is treated as an impairment loss and is recognized in 

the Profit and Loss Account. If at the Balance Sheet date, there is an indication that a 

previously assessed impairment loss no longer exists, the recoverable amount is re-assessed 

and the asset is reflected at the re-assessed recoverable amount subject to a maximum of 

depreciated historical cost. 

14. Provision for Doubtful Debts /Advances 

Provision for Doubtful Debts/ Advances are made when there is uncertainty of realization 

of debts which are long outstanding. All debts which are over and above one year are 

provided in full unless there is certainty of its recovery. 

In addition to the above, provision is also made in respect of dues in respect of which suits 

are filed. 

Writing off doubtful debts/advances are made when the un-realisability is established. 

15. Provisions and Contingent Liabilities 

Contingent liabilities as defined in Accounting Standard (AS) 29 on "Provisions, Contingent 

Liabilities and Contingent Assets" are disclosed by way of notes to the accounts. Provision 

is made if it is probable that an outflow of future economic benefits will be required for an 

Item previously dealt with as a contingent liability 

: : 43 : :


16. Cash flow statement has been prepared under indirect method. 

17. Borrowing cost 

All borrowing costs are charged to revenue except to the extent they are attributable to 

qualifying assets which are capitalised. During the period under review there was no 

borrowing attributable to qualifying assets and hence no borrowing cost was capitalized 

18. Related party disclosure 

Disclosure is made as per the requirements of the standard and as per the clarifications 

issued by the Institute of chartered Accountants of India under Item No.9 of Schedule 18 

Notes on Accounts. 

19. Consolidated financial statements 

Consolidated financial statements of the company and its wholly owned subsidiaries (Pac 

Ventures Pte.Ltd., Singapore & Sujana Holdings Ltd., Dubai, Nuance Holdings, Hong Kong) 

AND Sun Trading Limited are enclosed. 

20. Interim Financial Reporting 

Quarterly financial results are published in accordance with the requirement of listing 

agreement with stock exchanges. The recognition and measurement principle as laid down 

in the standard have been followed in the preparation of these results. 

SCHEDULE: 18 

NOTES ON ACCOUNTS: 

01. The Long Term Loans sanctioned by IDBI Bank Ltd. of Rs 7210.00 lakhs secured by the 

first charge on the entire assets of the Company both present and future ranking parripassu 

with the charges already created in favour of existing term lenders and second charge on 

all the current assets of the company present and future and further secured by the 

guarantees of Sri.Y.S.Chowdary, Chairman, Sri.G.Srinivasa Raju in their personal capacities 

and Corporate Guarantee of M/s Sujana Metal Products Limited. 

02. During the period the Company had converted the Optionally Fully Convertible Debentures 

(OFCD) of Rs.1200 lakhs into Equity Shares of the company as per the SEBI guide lines. 

The total Liability of term loan of Rs. 3726.33 lakhs to IFCI was repaid during the period 

and the Securities are yet to be released by IFCI. 

03. The Working Capital Loan of Rs. 132.20 cr. (under interchangeability) from Bank of Baroda, 

Chennai, Bank of India , Chennai and IDBI Bank Ltd, Hyderabad is secured by hypothecation 

of all stocks of Raw Materials, Work In Progress, Finished Goods, Stores & Spares, Book 

Debts, Other Current Assets and further secured by the personal guarantees of Sri.Y. S. 

Chowdary, Chairman of the Company, Sri.G.Srinivasa Raju, Director of the Company jointly 

and severally and are also secured by Corporate Guarantee of Sujana Metal Products Ltd. 

The said Loan is further secured by the second charge on all the fixed assets of the Company. 

04. Depreciation on the amount enhanced over the original cost due to revaluation of some of 

the fixed assets done during the year 1992-93 has been calculated for the year on the 

same basis as provided on the original cost. The amount of depreciation arising due to 

revaluation of fixed assets has been adjusted to revaluation reserve. 

: : 44 : :

05. Contingent Liabilities not provided for in respect of 

PARTICULARS 2007-08 2006-07 

1. Estimated amount of contracts remain to be 275.00 — 

executed during the year (approx) in respect 

of Casting Division (Rs. Lakhs) 

Bank Guarantees / Counter Guarantees given to — — 

Bank of Baroda: Guarantee executed in 8.00 — 

favour of Commissioner Central Excise (Rs. 

Lakhs) 

Financial Institutions — — 

INR (Rs. Lakhs) / in US $ — — 

b) Standby Letters of Credit issued by Banks 

INR (Rs. Lakhs) / in — 4073.60 

CHF (millions) — 12.00 

c) Corporate Guarantees furnished on behalf of 

Sujana Metal Products Ltd. 10996.65 10996.65 

d) Joint Corporate Guarantee executed by the Company US $ 85 US $ 85 

along with Sujana Metal Products Ltd.(SMPL), MILLIONS MILLIONS 

Sujana Towers Ltd.(STL) in favour of Sujana Holding 

Limited, Dubai and Alpha Ventures Ltd. wholly 

owned Subsidiaries SUIL and SMPL respectively. 

e) Corporate Guarantee executed in favour of CFIST Inc. US $ — 

USA on behalf of wholly owned subsidiary Company 9.9626 

M/s Pac Ventures Pte. Ltd., Singapore 

Millions 

d. Claims against the Company not acknowledged as debt. : NIL 

06. Management perception for audit observation No.9 (b) regarding dues payable to: 

i. The Income tax Department has passed consequential orders upto the assessment 

year 2005-06 for Rs.185.09 lakhs and for which the company has preferred appeal 

with ITAT. 

ii. The Commercial Tax department has raised a demand for Rs. 3099.49 lakhs on the 

company towards sales tax arrears in excess of the actual liability against which the 

company has preferred an appeal before Commissioner (Appeals), Commercial Taxes. 

The appeal before Sales Tax authorities was upheld and the company is awaiting the 

release of deposit of Rs.200 lakhs. 

iii. The Customs and Central Excise Department has raised a demand for Rs. 570.36 

lakhs on the company for arrears in excess of the actual liability against which the 

company has preferred an appeal before CESTAT. The Company had deposited Rs.2.50 

lakhs and obtained stay. 

The Management is hopeful of getting the verdict in their favour. 

07. The investments in fully owned subsidiaries at Dubai, Singapore and Cayman Islands are 

at cost of acquisition as on the reporting date of Financial Statements. The market value of 

: : 45 : :


investments made in Subsidiary Companies as on the balance sheet date is Rs.1007.74 

lakhs only. The diminution on account of FE fluctuations, in value of investments are not 

accounted for in the accounts. 

08. Disclosure made in terms of Clause 32 of the Listing Agreement with Stock Exchanges. 

S.No In the Disclosures of amounts at the year end and the maximum amount of 

accounts of 

loans/advances/ investments outstanding during the year. 

Sujana Pac Sujana Nuance Sun Trading 

Universal Ventures Holdings Holdings Ltd. 

Industries Pte.Ltd Ltd., Ltd., Cayman 

Limited Dubai Hong Kong Islands 

Parent Co. Subsidiary Subsidiary Subsidiary Subsidiary 

a. Loans and advances in the nature of loans to subsidiaries by name and amount (Rs.lakhs) 

Sujana Universal 

Not 

Industries Limited applicable Nil Nil Nil Rs. 496.54 

(Parent Company) 

b. Loans and advances in the nature of loans to associates by name and amount : NIL 

c. Loans and advances in the nature of loans where there is no repayment schedule or 

payment beyond seven years or no interest or interest below section 372A of Companies 

Act by name and amount. -NILd. 

Loans and advances in the nature of loans to firms/companies in which directors are 

interested by name and amount. -NIL- 

1. Disclosures as applicable to the parent company in the accounts of subsidiary company. 

a. Loans and advances in the nature of loans to Parent Company by name and amount 

(Rs. lakhs) 

Pac Ventures Pte. Rs.573.60 Not applicable nil nil nil 

Limited, Singapore 

2. Investments by the loanee in the shares of parent company and subsidiary company, 

when the company has made a loan or advance in the nature of loan. - NIL-- 

09. The following are the related parties as defined in Accounting Standard 18 of The Institute 

of Chartered Accountants of India. 

List of Related Parties and Relationships: 

A). Enterprises Where Control Exists: 

Holding/Subsidiaries and Fellow Subsidiaries 

Relationship 

: : 46 : :

A). Overseas Subsidiaries 

1). Pac Ventures Pte. Ltd., Wholly Owned Subsidiary 

2). Sujana Holdings Ltd., Wholly Owned Subsidiary 

3). Nuance Holdings Ltd., Wholly Owned Subsidiary 

4). Sun Trading Limited Wholly Owned Subsidiary 

B). Key Management Personnel 

1). Mr. Y.S.Chowdary Chairman 

2). Mr. G. Srinivasa Raju Managing Director 

3). Mr. S. Hanumantha Rao Director of Finance 

C). Enterprises over which Key Management personnel exercises significant Influence 

1). Sujana Towers Ltd 

2). Sujana Universal Industries Ltd. 

3). Sujana Finance and Trading Pvt. Ltd. 

4). Sujana Holdings Ltd. 

5). Sujana Projects Ltd. 

6). Sujana Energy Pvt Ltd. 

7). Sujana Transmissions Ltd. 

8). Yalamanchili Finance and Trading Pvt Ltd. 

9). Foster Infin & Trading Ltd. 

10). Y.S.Consultancy Services Pvt Ltd. 

11). Kakatiya Enclaves Pvt Ltd. 

13). Genemedix Biological Pvt Ltd. 

Particulars of Transactions with related parties: (Rs. lakhs) 

Transactions As At As At 

30.09.08 30.06.07 

Sales 9066.99 6592.76 

Purchases 2341.30 989.66 

Others 31.35 24.00 

Outstanding as on date Debit balance (Net) 29.63 (127.04) 

10. a. During the year the Company had successfully raised an amount of Rs.6150 lakhs 

(15090000 US $) through 30,00,000 Global Depository Receipts (GDRs) of US $ 5.03 

each to meet the general Corporate needs of the company and the same has been 

allotted 3,00,00,000 Equity shares at Rs.10.00 each at a premium of Rs 10.50 per 

Equity Shares. 

b. The expenses of Rs. 109.27 lakhs incurred on account of the issue of GDRs have been 

reduced from the Share premium account. 

c. Further during the year the Company has raised Equity share Capital to a tune of 

Rs. 490 Lakhs by allotting 49,00,000 Equity shares of Rs.10/- each at a premium of 

Rs.10.50 per share. The said allotment is to meet the incremental working capital 

and part finance the capital expenditure of the company. The Company has also 

allotted 49,79,253 equity shares of Rs.10/- each at a premium of Rs.14.10 per share 

to IFCI Limited in accordance with the Restructuring Scheme. 

: : 47 : :


11. During the year the Company had hived off certain assets along with some Liabilities to M/ 

s G.J. Trading (P) Limited. Hyderabad. 

12. Managerial Remuneration: 

Chairman Managing Total 

Director 

Salary 60,00,000 4,95,000 64,95,000 

HRA — 2,47,500 2,47,500 

Medical — 33,000 33,000 

Leave salary/encashment — 49,500 49,500 

Total 60,00,000 8,25,000 68,25,000 

COMPUTATION OF NET PROFIT IN ACCORDANCE WITH SEC.349 OF THE COMPANIES ACT, 1956 

Profit before Taxation 34,55,12,888 

Add: Loss on sale of fixed asset 1,69,61,323 

Managerial Remuneration 68,25,000 

Depreciation as per accounts 27,96,19,076 

Total 64,89,18,287 

Less : Depreciation under Sec.350 of the Companies Act, 1956 27,96,19,076 

Net profit for the year 36,92,99,211 

Remuneration paid to Managing Director/Chairman 68,25,000 

% of Managerial Remuneration in Net Profit 1.85% 

13. Balances under Sundry Debtors, Sundry creditors and Loans & Advances and other receivable 

and payables include long outstanding amounts are subject to confirmations to be received 

from some of the parties. 

14. Loans and advances of the Company includes 

a. Rs.6702.03 lakhs paid to M/s Seazun Limited, and does not carry any interest. 

b. Rs.1056 lakhs paid to Bennet & Colomen Limited towards future advertisement 

expenses and 

c. Rs.2000.47 lakhs paid to Future Tech Industries Limited, Hyderabad towards advance 

for investment in the company. 

15. Cash & Bank Balances includes an amount of Rs.6396.78 lakhs deposited with Euram 

Bank, Vienna, Austria for a considerable time out of amounts received under GDR Issue. 

16. As regards to compliance of provisions relating to the dues to the Small Scale Industries in 

terms of the Companies (Amendment) Act, 1999, the Company has no information, as to 

whether its suppliers constitute Small Scale Industrial Undertakings and consequently the 

amount due to such Industrial Undertakings have not been identified. 

: : 48 : :

17. Basic and Diluted Earnings Per Share (Amount in Rupees) 

2007-08 

(15 months) 

Net Profit after Tax 230252028 

Less: Dividend on CRPS 3045250 

Dividend tax 517692 

Net Profit available for Equity shareholder 226689086 

No of Equity Shares of Rs 10/- each 123841072 

Basic Earnings per Share of Rs 10/-each ) 1.83 

Diluted Earnigs per Share of Rs.10/- each — 

18. The following are the Segment-wise results for the year. 

Segment 

For the year 

30.09.2008 

1 Revenue Rs. Lakhs 

A) Lec Division 4869 

B) Appliances Division 3486 

C) Steel Products 109745 

Net Sale/Income From Operations 118100 

2. Results 

A) Lec Division -196.57 

B) Appliances Division -217.13 

C) Steel Products 2716.21 

TOTAL PROFIT/LOSS (-) 2302.51 

3. Capital Employed (Assets - Liabilities) 

A) Lec Division 2866 

B) Appliances Division 1732 

C) Steel Products 48287 

TOTAL 52885 

4. Geographical Revenue 

Andhra Pradesh 78535 

Chennai 27004 

Maharastra 5 

Exports 12555 

TOTAL 118099 

: : 49 : :


19 Additional Information pursuant to the paras 3 and 4 of the part II of Schedule VI of the 

Companies Act , 1956 

a) Capacities & Production 

1. Licenced Capacity 

Bearings Nos. 1,00,00,000 

Cast Iron Products MTs. 60,000 

2. Installed Capacity 

Bearings Nos. 1,00,00,000 

Cast Iron Products MTs. 60,000 

Appliances Nos. 7,18,000 

For The Period Ending For The Period Ending 

30.9.2008 30.06.2007 

Units Qty Amount Qty Amount 

(Rs.) 

( Rs.) 

1 A) Actual Production 

Ball Bearings & Components Nos. 459094 330,801 

Appliances, Ceiling Fans Nos. 46269 42,431 

And Other Components 

Steel Products Nos. 8754 4,586 

Steel Products Tonnes 339938 301,801 

(Including Processed/Traded Items) 

B) Details of Raw 

Materials Consumed 

Imported Rs. 1,645,345,119 701,908,062 

Indiginious Rs. 9,452,559,664 7,632,517,370 

C) Turnovers 

Bearings/ Components Nos. 458,835 24,350,738 335203 10,765,670 

Appliances, Components And Nos. 51,826 31,684,809 34986 23,648,874 

Ceiling Fans 

Export of Steel Products Tonnes 29841 743,508,991 30,960 465,393,447 

Export Agri Items Tonnes 5800 256,756,500 13,391 144,434,293 

Others Nos. 300,399,133 116,365,621 

Steel Products Tonnes 303508 9,517,123,168 293,852 7,634,854,851 

Steel Products Nos./Sets 4886 853,896,625 4,342 695,329,000 

(Including Processed/Traded Items) 

D) Opening Stocks 

Appliances & 12473 11,474,191 5,028 2,566,772 

Appliances Components Nos. — — 

Bearings Nos. 142274 4,914,644 124,926 5,130,266 

Steel Products Nos. 307 46,352,510 63 9,593,525 

Steel Products Tonnes 9802 251,972,663 1,796 49,054,107 

: : 50 : :

For The Period Ending For The Period Ending 

30.9.2008 30.06.2007 

Units Qty Amount Qty Amount 

(Rs.) 

( Rs.) 

E) Closing Stocks 

Bearings & Components Nos. 144785 6903971 142,274 4,914,644 

Appliances Nos. 9440 8029306 12,473 11,474,191 

Steel Products Tonnes 4175 543892572 9,802 251,972,663 

Steel Products Nos. 10591 359403130 307 46,352,510 

F) Particulars of Raw 

Materials And Stores 

& Spares Consumed 

A. Raw Materials 

Stores & Spares 

Imported Rs. 1,645,345,119 701,908,062 

% 14.83 8 

Indigenious Rs. 9,452,559,664 7,632,517,370 

% 85.17 92 

G) Cif Value of Imports 1,645,345,119 701,908,062 

H) Expenditure In Foreign Rs. 

Curriency 1,645,345,119 653,155,905 

I) Purchase of Goods For Resale 

Steel Products Tonne 8382558160 282,488 7,096,957,517 

OthersNo 4,586 746,759,456 

Fob Value Of Exports 1,255,547,534 726,193,361 

j) Earning in Foreign Currency Rs. 1,255,547,534 1,498,059,622 

19 Particulars of Remuneration 

Paid to Directors 

a. Managind Director Rs. 825,000 525,000 

(inclusive of perquisits) 

b. Other Direcrtors Rs. 60,000,000 — 

20 Previous Year's figures have been regrouped wherever necessary to conform to current 

period's classification. 

20 Figures have been rounded off to nearest rupee. 

In authentication of Schedules 1 to 18 in terms of our Report of Even Date. 








Date : 10.12.2008 Date : 10.12.2008 Company Secretary 

: : 51 : :


CASH FLOW STATEMENT 

PARTICULARS 30.09.2008 30.06.2007 

(Rs.in Lakhs) 

(Rs.in Lakhs) 

(15 mnths) (12 mnths) 

CASH FLOW FROM OPERATING ACTIVITIES 

Net Profit Before Tax 3,455.13 3,383.60 

Adjustments for 

Depreciation 2,796.19 2,106.15 

Financial Expenses 3,545.60 2,385.16 

Interest earned & other income (815.40) (490.22) 

Operating Profit Before Working Capital Changes 8,981.52 7,384.68 


Decrease/(Increase)in Inventories (6,292.45) (2,676.45) 

Decrease/(Increase)in Debtors 6,338.39 (5,841.56) 

Decrease/(Increase)in in Loans& Advances (4,011.89) (6,993.02) 

Increase/(Decrease)in Current Liabilities 4,923.93 3,100.94 

Cash Generated from Operations 9,939.49 (5,025.41) 

Interest & Financial Charges (3,545.60) (2,385.16) 

Other Income 815.44 490.22 

Extraordinary Item (574.05) (66.12) 

Cash from Operating Activities (A) 6,635.29 (6,986.47) 

CASH FLOW FROM FINANCIAL ACTIVITIES 

Increase/(Decrease)in Share Capital 8,245.23 7,688.50 

Increase/(Decrease)in Share Application money (1,004.50) 1,004.50 

Increase/(Decrease)in W.C.loans & Term loans (1,497.85) (1,498.23) 

Increase/(Decrease)in Dividend & Taxes paid (390.44) (781.91) 

Net Cash from Financing Activities (B) 5,352.44 6,412.86 

CASH FLOW FROM INVESTING ACTIVITIES 

(Increase)/Decrease in Purchase of Fixed Assests (4,742.09) (3,687.51) 

(Increase)/Decrease in Investments (858.29) (149.45) 

(Increase)/Decrease in revaluation reserve - (3.47) 

(Increase)/Decrease in other reserves - - 

Cash from Investment Activities(C) (5,600.38) (3,840.43) 

Net Increase in Cash and Cash Equivalent (A+B+C) 6,387.35 (4,414.04) 

Cash and Cash equivalent as on 30.06.2007 159.57 4,573.61 

Cash and Cash equivalent as on 30.06.2008 6,546.92 159.57 









: : 52 : :

PAC VENTURES PTE LTD., SINGAPORE 

BALANCE SHEET AS AT 31ST MAY, 2008 

As At 

Particulars Sch. 31.5.2008 

Ref. (Amount in Rupees) 

SOURCES OF FUNDS 

Shareholders' Funds 

a) Share Capital 1 94,601,371 

b) Share Application Money — 

c) Reserves and Surplus 2 1,341,755 

T O T A L 95,943,125 


Current Assets, Loans and Advances 


a) Inventories — 

b) Sundry Debtors 3 39,152,333 

c) Cash and Bank Balances 4 150,498 

B. Loans And Advances 5 57,649,978 

Sub-total 96,952,809 

Less: Current Liabilities and Provisions 6 

a. Current Liabilities 1,009,684 

b. Provisions — 

Sub-Total 1,009,684 

Net Current Assets 95,943,125 

T O T A L 95,943,125 

Accounting Policies 


Schedules 1 to 6, 17 Refered to above 

form an integral part of this balance sheet 


Place: Hyderabad Y.S. Chowdary Ramakrishna Varma Meka 

Date : 10.12.2008 Director Director 

: : 53 : :



PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED 31ST MAY, 2008 

As At 



INCOME 

Sales 7 2,982,704,812 

Other Income — 

Increase/(Decrease) in Stocks — 

Total 2,982,704,812 

EXPENDITURE 

Material consumed and bought out Goods 8 2,979,897,281 

Manufacturing, Administrative and 

Selling Expenses 9 1,465,776 

Depreciation 

Financial Expenses — 

2,981,363,058 

PROFIT BEFORE TAXATION 1,341,755 

Profit Before Taxation 1,341,755 

a) Provision for Income Tax — 

b) Provision for Deferred Tax Liability — 

c) Provision for Dividend Tax — 

d) Provision for Fringe Benefit Liability — 

Profit After Taxation 1,341,755 

ADD/(LESS) :PRIOR YEAR ADJUSTMENTS: 

Add:Balance of Profit Brought Forward — 

From earlier Years 

PROFIT AVAILABLE FOR APPROPRIATION 1,341,755 

Proposed Dividend on Cumulative — 


Balance of Profit 1,341,755 



Nominal value of each Share in Rupees 

Schedules 7 to 9 Refered to above form an 

integral part of this Profit & Loss Account 




: : 54 : :



As At 



SCHEDULE. 1 

Share Capital 

Authorised 

2780000 ordinary shares of Rs. 34.29 each 94,601,371 

(US $ 0.7326 each) 

94,601,371 



(US $ 0.7326 each) 

94,601,371 

Paid-up 


(US $ 0.7326 each) 

Total 94,601,371 

SCHEDULE. 2 

Reserves and Surplus 

1. Capital Reserve — 

2. General Reserve — 

3. Profit And Loss Account 1,341,755 

4. Share Premium Account — 

5. Revaluation Reserve — 

6. Foreign Exchange Transacation Reserve — 

Total 1,341,755 

SCHEDULE. 3 

Sundry Debtors (Unsecured-considered Good) 

1. Debts Outstanding not more than Six Months 39,152,333 

2. Other Debts — 

Total 39,152,333 

SCHEDULE. 4 

Cash And Bank Balances 

1. Cash on Hand 150,498 

2. Balances With Schedule Banks — 

Total 150,498 

: : 55 : :




As At 



SCHEDULE. 5 

Loans And Advances (Unsecured-considered Good) 

1. Advances to Subsiaries 57,649,978 

Total 57,649,978 

SCHEDULE. 6 

Current Liabilities and Provisions 

Current Liabilities 

1. Creditors for Supplies and Others 1,009,684 

Total 1,009,684 

SCHEDULE. 7 

Sales 

1. Sales - Indigenous 2,982,704,812 

- Exports 

2,982,704,812 

SCHEDULE. 8 


Opening Stock of Material 

Add: Purchase of Material — 

— 

Less: Closing Stock Of Material — 

Raw Material Consumed — 

Add:Bought out Goods 2,979,897,281 

Total Materials Consumed 2,979,897,281 

Total 2,979,897,281 

SCHEDULE.9 


Miscellaneous Expenses 1,465,776 

Total 1,465,776 




: : 56 : :

NUANCE HOLDINGS, HONG KONG 

BALANCE SHEET AS AT 30TH JUNE, 2008 

As At 



1 SOURCES OF FUNDS 


A) Share Capital 1 2,977,564 

B) Share Application Money — 

C) Reserves and Surplus 2 131,013 

T O T A L 3,108,577 


1 Fixed Assets 

A) Gross Block 42,171 

Less : Depreciation — 

Net Block 42,171 

B) Capital Work in Progress — 

42,171 

2 Current Assets, Loans and Advances 


a) Inventories — 

b) Sundry Debtors 3 52,871,109 

c) Cash and Bank Balances 4 107,290 

B. Loans and Advances 5 309,666 

Sub-Total 53,288,065 

Less:Current Liabilities and Provisions 6 

A. Current Liabilities 50,195,230 

B. Provisions 26,430 

Sub-Total 50,221,660 

Net Current Assets 3,066,406 

Total 3,108,577 



Schedules 1 to 6, 17 Refered to above form 

an integral part of this balance Sheet 



Date : 10.12.2008 

V. Ramesh 

Director 

: : 57 : :



PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED 30TH JUNE, 

2008 

As At 



I 

INCOME 

Sales 7 56,401,076 

Other Income 8 24,540 

Increase/(Decrease) in Stocks — 

Total 56,425,617 

II 

EXPENDITURE 

Material Consumed and bought out Goods 9 52,199,407 


Selling Expenses 10 4,054,699 

Depreciation — 

Financial Expenses 11 14,068 

56,268,174 

III PROFIT BEFORE TAXATION 157,443 

— 

Profit Before Taxation 157,443 

a) Provision for Income Tax 26,430 

b) Provision for Deferred Tax Liability — 

c) Provision for Dividend Tax — 

d) Provision for Fringe benefit Liability — 

Profit After Taxation 131,013 

IV ADD/(LESS) :PRIOR YEAR ADJUSTMENTS: 

Add:Balance of Profit Brought Forward — 

from Earlier Years 

V PROFIT AVAILABLE FOR APPROPRIATION 131,013 

Proposed Dividend on Cumulative 


VI BALANCE OF PROFIT 131,013 



Nominal Value of each share in Rupees 

Schedules 7 to 11 Refered to above form an integral part of this Profit & Loss Account 



Date : 10.12.2008 

V. Ramesh 

Director 

: : 58 : :



As At 



SCHEDULE. 1 

Share Capital 

Authorised 

5,00,000 Ordinary Shares of Rs. 10/- each 2,977,564 

(US $ 0.128 each) 

2,977,564 

Issued and Subscribed 


(US $ 0.128 each) 

2,977,564 

Paid-up 


(US $ 0.128 each) 

Total 2,977,564 

SCHEDULE. 2 


1. Capital Reserve — 

2. General Reserve — 

3. Profit And Loss Account 131,013 

4. Share Premium Account — 

5. Revaluation Reserve — 

6. Foreign Exchange Transacation Reserve 

Total 131,013 

SCHEDULE. 3 


1. Debts Outstanding not more than Six Months 52,871,109 

2. Other Debts — 

Total 52,871,109 

SCHEDULE. 4 

Cash and Bank Balances 

1. Cash on Hand — 

2. Balances With Schedule Banks 

- In Current Accounts 107,290 

Total 107,290 

: : 59 : :




As At 



SCHEDULE. 5 

Loans and Advances (Unsecured-considered Good) 

1. Deposits 309,666 

Total 309,666 

SCHEDULE. 6 

Current Liabilities and Provisions 


1. Creditors For Supplies And Others 50,065,029 

2. Interest Accrued But Not Due 130,200 

Sub-total 50,195,230 

B. Provisions 

1. Provision For Income-tax 26,430 

Sub-total 26,430 

Total 50,221,660 

: : 60 : :


SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT 

FOR THE YEAR ENDED 30.06.2008 

As At 



SCHEDULE. 7 

Sales 

1. Sales - Indigenous 56,401,076 

- Exports — 

56,401,076 

SCHEDULE. 8 

Other Income 

1. Interest Earned 24,540 

Total 24,540 

SCHEDULE. 9 

Material Consumed and Bought-out Goods 

Opening Stock of Material 

Add: Purchase of Material — 

Less: Closing Stock Of Material — 

Raw Material Consumed — 

Add:Bought Out Goods 52,199,407 

Total Materials Consumed 52,199,407 

Total 52,199,407 

SCHEDULE.10 

Manufacturing, Administrative and Selling Expenses 

Director's Remuneration 1,189,834 

Printing And Stationery 124,083 

Postage, Telegrams And Telephones 86,141 

Travelling And Conveyance - General 20,240 

Travelling - Foreign 531,685 

Rent, Rates & Taxes 1,135,342 


- Audit Fees 29,776 

Miscellaneous Expenses 59,551 

Carriage Outwards 109,273 

Commission & Discount 49,130 

Repairs & Maintenance 17,883 

: : 61 : :



SCHEDULES FORMING PART OF PROFIT & LOSS ACCOUNT 

FOR THE YEAR ENDED 30.06.2008 

As At 



Samples 325,872 

Depreciation 15,659 

Provident Fund 35,731 

Foreign Exchange Loss 5,455 

Sundry Expenses 6,506 

Business Development Expenses 275,378 

Secretarial Fee 37,160 

Total 4,054,699 

SCHEDULE.11 


Bank Charges 14,068 

Total 14,068 



Date : 10.12.2008 

V. Ramesh 

Director 

: : 62 : :

STATEMENT RELATING TO SUBSIDIARY PAC VENTURES PTE. LTD., SINGAPORE 

Statement pursuant to Section 212 (1)(e) of the Companies Act, 1956 relating to Subsidiary 

: 

Sl. Particulars Name of the Subsidiary 

No. 

PAC Ventures Pte. Ltd. 

1. Financial year of the Company 11.12.2006 to 31.05.2008 

2. Shares of the Subsidiary held by the 

Company as on 30.09.2008 

(a) Amount invested which is equivalent Rs. 84,891,905 

in Indian Currency 

(b) Extent of holding 100% 

3. Net aggregate amount of profits/(losses) 

of the Subsidiary for the above financial 

year of the Subsidiary not dealt with in the 

Company’s accounts 

(a) for the financial year of the Nil 

Subsidiary - profit / (loss) 

(b) for the previous financial years N/A 

since it became a Subsidiary 

4. Net aggregate amount of profits / (losses) 

of the Subsidiary for the above Financial 

year of the Subsidiary dealt with in the 


(a) for the financial year of the - 


(b) for the previous financial years - 


The financial year of the Holding Company is not coinciding with the financial year of 

Subsidiary Company. The following information is provided under Section 212(5). 

1. There is no change in the Holding Company’s interest in the Subsidiary from the date of 

closure of financial year of subsidiary (i.e. 31.05.2008) to the date of closure of the financial 

year of Holding Company i.e. 30.09.2008. 

2. There are no material changes which have occurred from the date of closure of financial 

year on 31.05.2008 to the date of closure of the financial year of Holding Company 

(i.e. 30.09.2008) in respect of (a) Subsidiary’s Fixed Assets (b) its investments (c) the 

money lent by it (d) the money borrowed by it for any purpose other than that of meeting 

current liabilities. 


Y.S. Chowdary G. Srinivasa Raju 

Chairman 

Managing Director 

Place: Hyderabad P. Apser Hussen 

Date : 10.12.2008 

Company Secretary 

: : 63 : :


STATEMENT RELATING TO SUBSIDIARY NUANCE HOLDINGS LIMITED, HONG KONG 



No. 

Nuance Holdings Limited 




(a) Amount invested which is equivalent Rs. 2,602,564 




















Subsidiary Company. The following information is provided under Section 212(5) 


closure of financial year of subsidiary (i.e. 30.06.2008) to the date of closure of the financial 

year of Holding Company i.e. 30.09.2008. 

2. There are no material changes which have occurred from the date of closure of financial 

year on 30.06.2008 to the date of closure of the financial year of Holding Company 

(i.e. 30.09.2008) in respect of (a) Subsidiary’s Fixed Assets (b) its investments (c) the 

money lent by it (d) the money borrowed by it for any purpose other than that of meeting 

current liabilities. 



Chairman 



Date : 10.12.2008 


: : 64 : :

STATEMENT RELATING TO SUBSIDIARY SUJANA HOLDINGS LIMITED, UAE 



No. 

Sujana Holdings Limited 




(a) Amount invested which is equivalent Rs. 1,28,32,500 






















incorporation to the date of closure of the financial year of Holding Company i.e. 30.09.2008. 

2. There are no material changes which have occurred from the date of incorporation to the 

date of closure of the financial year of Holding Company (i.e. 30.09.2008) in respect of (a) 

Subsidiary’s Fixed Assets (b) its investments (c) the money lent by it (d) the money borrowed 

by it for any purpose other than that of meeting current liabilities. 



Chairman 



Date : 10.12.2008 


: : 65 : :


STATEMENT RELATING TO SUBSIDIARY SUN TRADING LIMITED, CAYMAN ISLANDS 



No. 

Sun Trading Limited 




(a) Amount invested which is equivalent Rs. 447,276 






















incorporation to the date of closure of the financial year of Holding Company i.e. 30.09.2008. 

2. There are no material changes which have occurred from the date of incorporation to the 

date of closure of the financial year of Holding Company (i.e. 30.09.2008) in respect of (a) 

Subsidiary’s Fixed Assets (b) its investments (c) the money lent by it (d) the money borrowed 

by it for any purpose other than that of meeting current liabilities (e) Rs. 49,654,150/ 

- borrowed by it from holding Company. 



Chairman 



Date : 10.12.2008 


: : 66 : :

Consolidated Accounts 

for the Year Ended 

30-09-2008 

: : 67 : :


AUDITORS’ REPORT 

TO 

THE BOARD OF DIRECTORS 

SUJANA UNIVERSAL INDUSTRIES IMITED 

1. We have audited the attached consolidated balance Sheet of Sujana Universal Industries Limited 

(“the Company”) and its subsidiaries (the Company and its subsidiaries constitute 

“the Group”) as at September 30, 2008, and also the Consolidated Profit and Loss Account for the 

period 01.07.2007 to 30.09.2008 on and the Consolidated Cash Flow Statement for the said date 

both annexed thereto. These consolidated financial statements are the responsibility of the Company’s 

management on the basis of separate financial statements and other financial information regarding 

components. Our responsibility is to express an opinion on these financial statements based on our 

audit. 

2. We conducted our audit in accordance with the auditing standards generally accepted in India. This 

Standard requires that we plan and perform the audit to obtain reasonable assurance about whether 

the financial statements are free of material misstatement. An audit includes examining, on a test 

basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 

includes assessing the accounting principles used and significant estimates made by the management, 

as well as evaluating the overall financial statement presentation. We believe that our audit 

provides a reasonable basis for our opinion. 

3. We did not audit the financial statements of the two subsidiaries whose financial statements reflect 

total assets of Rs.990 lakhs at 31 st May, 2008 or 30 th June 2008 as the case may be , the total 

revenue of Rs30391.05 lakhs and cash flows amounting to Rs.972.51 lakhs for the year then ended. 

These financial statements and other financial information have been audited by other two auditors 

whose reports have been furnished to us, and our opinion is based solely on the report of other 

auditors. 

4. We have relied on the un-audited financial statements of two subsidiaries whose consolidated financial 

statements reflect total assets of Rs.6624.53 lakhs as at 30.9.2008, total revenue of Rs. 72824. 

47 lakhs and cash flows amounting to Rs 6044.18 lakhs for the year then ended. These un-audited 

financial statements as approved by the respective Board of Directors of these companies have been 

furnished to us by the Management and our report in so far as it relates to the amounts included in 

respect of the subsidiaries is based solely on such approved un-audited financial statements. 

5. Subject to the matters referred to in paragraphs 3 & 4 above, we report that the Consolidated 

Financial Statements have been prepared by the Company’s management in accordance with the 

requirements of Accounting Standard (AS) 21, Consolidated Financial Statements, Accounting Standard 

(AS) 23, Accounting for Investments in Associates in Consolidated Financial Statements issued 

by the Institute of Chartered Accountants of India. 

6. Based on our audit and on consideration of the reports of other auditors on separate financial statements 

and on the other financial information of the components, in our opinion and to the best of our 

information and according to the best of our information and according to the explanations given to 

us, the attached Consolidated Financial Statements give a true and fair view in conformity with the 

accounting principles generally accepted in India. 

(a) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 

September 30, 2008; 

(b) in the case of the Consolidated Profit and Loss account, of the profit for the year ended on 

that date; and 

(c) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for 

the year ended on that date. 




Date : 10.12.2008 


: : 68 : :

CONSOLIDATED BALANCE SHEET AS AT 30TH SEPTEMBER, 2008 


Sch. As At As At 

Particulars Ref. 30.09.2008 30.06.2007 

1 SOURCES OF FUNDS 


A) Share Capital 1 1,482,030,720 1,083,238,190 

B) Share application Money — 100,450,000 

C) Reserves and Surplus 2 4,128,715,404 3,034,923,851 

Sub-Total 5,610,746,123 4,218,612,041 

2 Deferred Tax Liability 334,671,330 312,296,330 

3 Loan Funds 

A) Secured Loans 3 1,575,689,355 1,725,474,458 

B) Unsecured Loans — — 

Sub-Total 1,575,689,355 1,725,474,458 

Total 7,521,106,808 6,256,382,829 


1 Fixed Assets 4 

A) Gross Block 3,412,599,919 3,014,466,106 

Less :Depreciation 1,394,237,776 1,173,951,998 

Net Block 2,018,362,143 1,840,514,108 

B) Capital work in Progress 116,342,029 98,470,077 

: : 69 : : 

2,134,704,172 1,938,984,185 

2 INVESTMENTS — — 

3 Current Assets, Loans and Advances 


A) Inventories 5 1,032,925,644 403,680,644 

B) Sundry Debtors 6 3,636,501,809 3,205,329,284 

C) Cash and Bank Balances 7 705,553,254 16,543,818 

B. Loans and Advances 8 2,149,530,682 1,800,686,680 

Sub-Total 7,524,511,389 5,426,240,426 

Less:Current Liabilities and Provisions 9 

A. Current Liabilities 2,099,038,523 1,019,314,765 

B. Provisions 39,070,231 89,527,016 

Sub-Total 2,138,108,755 1,108,841,781 

Net Current Assets 5,386,402,634 4,317,398,645 

Total 7,521,106,808 6,256,382,829 


Notes on Accounts 19 17 

Schedules 1 to 10, 17 & 18 Refered to above form an integral part of this Balance Sheet 










CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED 30TH SEPTEMBER, 2008 


For The 

For The 

Particulars Sch. Period Ended Period Ended 

Ref. 30.09.2008 30.06.2007 

I 

Income 

Sales 10 22,049,945,536 12,111,212,866 

Other Income 11 81,564,937 49,021,719 

Increase/(Decrease) in Stocks 12 607,226,678 255,827,202 

Total 22,738,737,151 12,416,061,787 

II 

Expenditure 

Material Consumed and bought out goods 13 20,990,813,605 11,062,445,615 


Selling Expenses 14 367,271,268 339,549,480 

Depreciation 279,619,076 210,614,563 

Financial Expenses 15 354,574,178 238,561,998 

21,992,278,127 11,851,171,656 

III Profit before Taxation 746,459,024 564,890,130 

Profit Before Taxation 746,459,024 564,890,130 

A) Provision for Income Tax 34,526,430 86,125,844 

B) Provision for Deferred Tax Liability 22,375,000 37,975,808 

C) Provision for Dividend Tax 517,692 414,032 

C) Provision for Fringe Benefit Liability 980,859 550,940 

Profit After Taxation 688,059,043 439,823,506 

IV Add/(Less) : Prior Year Adjustments: (57,405,001) (6,612,414) 

Add:Balance of Profit Brought forward 1,472,510,884 1,011,635,079 

from earlier years 

V Profit available for appropriation 2,103,164,926 1,444,846,171 

Proposed Dividend on Cumulative 3,045,250 2,436,200 


VI Balance of Profit 2,100,119,676 1,442,409,971 



Nominal value of each Share in Rupees 10 10 

Schedules 11 To 18 Refered To Above Form An Integral Part Of This Profit & Loss Account 









: : 70 : :




30.09.2008 30.06.2007 

SCHEDULE. 1 

SHARE CAPITAL 

Authorised 

13,00,00,000 Equity Shares of Rs. 10/ each 1,300,000,000 1,300,000,000 

25,00,000 Cumulative redemable preference 250,000,000 250,000,000 

Shares of Rs.100/- each 

1,550,000,000 1,550,000,000 


12,38,41,072 equity shares of Rs.10/- each 1,238,410,720 839,618,190 

24,36,200 cumulative redemable preference 243,620,000 243,620,000 

Shares of Rs.100/- each 

1,482,030,720 1,083,238,190 

Paid-up 

12,38,41,072 equity shares of Rs.10/- each 1,238,410,720 839,618,190 

(Previous Year 8,39,61,819 equity share 

of Rs.10/- Each) 

24,36,200 cumulative redemable preference 243,620,000 243,620,000 

Shares of Rs. 100/- each 

Total 1,482,030,720 1,083,238,190 

SCHEDULE. 2 


1. Capital Reserve 2,000,000 2,000,000 

2. General Reserve 166,782,657 166,782,657 

3. Profit and Loss Account 2,100,119,676 1,442,409,972 

4. Share premium Account 1,847,036,584 1,421,305,798 

5. Revaluation Reserve 1,990,347 2,425,424 

6. Exchange fluctuation reserve 10,786,140 — 

Total 4,128,715,404 3,034,923,851 

SCHEDULE. 3 

Secured Loans 

1. Term Loan 660,578,105 1,237,373,630 

2. H P Loans 3,735,708 1,177,738 

3. Working capital loan 911,375,542 486,923,090 

Total 1,575,689,355 1,725,474,458 

: : 71 : :


SCHEDULE - 4 : CONSOLIDATED FIXED ASSETS 

GROSS BLOCK DEPRECIATION NET BLOCK 

PARTICULARS As On As On Upto For The On Upto As On As On 

01.07.2007 Additions Deletions 30.09.2008 01.07.2007 Year Deletions 30.09.2008 30.09.2008 30.06.2007 

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 

1. Land 8,116,261 — — 8,116,261 — — — — 8,116,261 8,116,261 

2. Buildings 112,866,087 1,719,620 — 114,585,707 36,914,541 4,749,767 — 41,664,308 72,921,399 75,951,546 

3. Plant & Machinery 2,773,379,079 574,766,250 190,519,709 3,157,625,621 1,060,850,182 264,726,795 60,464,653 1,265,112,324 1,892,513,297 1,712,528,897 

4. Electrical Installations 43,246,506 4,848,441 — 48,094,947 25,104,454 4,265,236 — 29,369,690 18,725,257 18,142,052 

5. Office Equipments 24,996,327 814,606 — 25,810,933 15,701,008 2,604,897 — 18,305,905 7,505,028 9,295,319 

6. Testing Equipment 10,104 — — 10,104 7,612 40 — 7,652 2,452 2,492 

7. ERP 20,000,000 — — 20,000,000 20,000,000 — — 20,000,000 — — 

8. Furniture & Fixtures 8,378,735 76,400 — 8,455,135 3,714,096 638,681 — 4,352,777 4,102,358 4,664,639 

9. Vehicles 23,121,353 6,428,205 — 29,549,558 11,454,755 3,052,068 — 14,506,823 15,042,735 11,666,595 

10. Mis Equipments 351,654 — — 351,654 205,346 16,668 — 222,014 129,640 146,310 

T O T A L 3,014,466,106 588,653,522 190,519,709 3,412,599,920 1,173,951,994 280,054,152 60,464,653 1,394,237,777 2,019,058,427 1,840,514,111 

Less : Revaluation Reserve written back 435,076 

279,619,076 

: : 72 : :




30.09.2008 30.06.2007 

SCHEDULE. 5 

Inventories (As Taken, Valued And Certified 

By The Management) 

1. Raw Material 95,616,600 65,132,194 



4. Stock of Consumables 10,485,657 18,951,741 

Total 1,032,925,644 403,680,644 

SCHEDULE. 6 


1. Debts Outstanding Not More 

Than Six Months 3,607,113,314 3,175,901,718 

2. Other Debts 29,388,495 29,427,566 

Total 3,636,501,809 3,205,329,284 

SCHEDULE. 7 

Cash and Bank Balances 

1. Cash on Hand 64,080,641 4,517,121 

2. Balances with Schedule Banks 287,789 304,314 

- In Current Accounts 1,379,051 800,889 

- At Euram Bank, Vienna 639,678,594 9,185,143 

- As Margin Money 127,179 1,736,351 

Total 705,553,254 16,543,818 

SCHEDULE. 8 

Loans And Advances (Unsecured-considered Good) 

1. Advance to Suppliers 870,777,331 744,481,760 

2. Advance to Staff 2,550,942 3,196,014 

3. Other advances 1,134,614,459 1,011,219,099 

4. Deposits 121,819,939 35,804,407 

5. Prepaid Expenses 124,255 163,354 

6. Excise Balance 16,699,674 3,215,288 

7. Tax Deducted at Source 2,944,083 2,606,758 

8. Advances to Subsiaries — — 

Total 2,149,530,682 1,800,686,680 

: : 73 : :





30.09.2008 30.06.2007 

SCHEDULE. 9 

Current Liabilities And Provisions 


1. Creditors for Supplies and Others 1,728,497,964 771,643,717 

2. Creditors for Services and Expenses 140,844,216 84,968,000 

3. Other Liabilities 152,451,108 76,372,198 

4. Advance From Customers 39,822,094 56,440,071 

5. Interest Accrued but not due 24,167,495 28,234,074 

6. Capital Creditors 10,563,463 — 

7. TDS Payable 2,692,183 1,656,705 

8. Advances from Holding Company — — 

Sub-total 2,099,038,523 1,019,314,765 

B. Provisions 

1. Proposed Dividends 3,045,250 2,436,200 

2. Provision for Income-tax 34,526,430 86,125,844 

3. Provision for Dividend Tax 517,692 — 

4. Provision for fringe Benefit Tax 980,859 550,940 

Sub-total 39,070,231 89,112,984 

Total 2,138,108,755 1,108,427,749 









: : 74 : :



For The 

For The 

Particulars Period Ended Period Ended 

30.09.2008 30.06.2007 

SCHEDULE. 10 

Sales 

1. Sales - Indigenous 20,794,398,002 11,385,019,505 

- Exports 1,255,547,534 726,193,361 

Total 22,049,945,536 12,111,212,866 

SCHEDULE. 11 

Other Income 

1. Interest Earned 24,811,189 25,935,542 

2. Jobwork Income 10,709,458 9,003,356 

3. Miscellaneous Income 208,222 5,129,821 

4. Excess Provisions Made Written Back 20,767,791 6,915,019 

5. Rent Received 135,000 — 

6. Commissions Received 406,962 2,037,981 

7. Profit On Sale Of Assets 319,074 — 

8. Foreign Exchange Fluctuations 24,207,242 — 

Total 81,564,937 49,021,719 

SCHEDULE. 12 

Increase/(Decrease) In Stocks 

Opening Stock — — 


2. Semi-finished Goods 4,882,701 5,323,256 

Sub-Total 319,596,709 63,769,507 

Closing Stock 


2. Semi-finished Goods 8,594,408 4,882,701 

Sub-Total 926,823,387 319,596,709 

Increase/(Decrease) in Stocks 607,226,678 255,827,202 

SCHEDULE. 13 


Opening stock of Material 84,083,935 73,961,526 

Add: Purchase of Material 2,737,364,945 11,072,568,024 

2,821,448,880 11,146,529,550 

Less: Closing stock of Material 106,102,257 84,083,935 

Raw Material Consumed 2,715,346,623 11,062,445,615 

Add:Bought out Goods 18,275,466,982 — 

Total Materials Consumed 20,990,813,605 11,062,445,615 

20,990,813,605 11,062,445,615 

: : 75 : :




For The 

For The 

Particulars Period Ended Period Ended 

30.09.2008 30.06.2007 

SCHEDULE. 14 


Power And Fuel 166,649,316 108,451,521 

Machinery Maintainance 5,328,688 5,979,210 

Job Work Expenses 21,042,727 6,327,208 

Staff And Workers Welfare 1,752,241 9,959,267 

Repairs To Buildings 249,287 594,453 

Salaries And Wages 39,081,083 68,740,247 

Bonus To Employees 1,909,267 826,885 

Director's Remuneration 9,635,734 2,312,147 

Contribution To Esi And Pf 2,360,779 1,030,581 

Insurance 851,220 1,624,574 

Printing And Stationery 1,361,008 4,168,580 

Postage, Telegrams And Telephones 2,475,815 3,137,169 

Travelling And Conveyance - General 5,237,500 13,766,666 

Travelling And Conveyance - Directors 414,499 190,816 

Travelling - Foreign 546,085 49,313 

Professional Charges 34,371,556 16,603,499 

Rent, Rates & Taxes 6,119,317 5,099,405 


- Audit Fees 154,776 75,000 

- Tax Audit Fees 25,000 15,000 

- Others 44,944 — 

Group Gratuity Scheme — 54,446,191 

Miscellaneous Expenses 37,098,487 8,420,419 

Carriage Outwards 3,427,877 1,269,635 

Commission & Discount 517,637 1,410,292 

Meeting And Conference Expenses 254,567 439,512 

Advertisement Expenses 3,648,462 12,305,032 

Repairs & Maintenance 17,883 — 

Samples 325,872 — 

Depreciation 15,659 — 

Provident Fund 35,731 — 

Foreign Exchange Loss 5,455 — 

Sundry Expenses 6,506 — 

Business Development Expenses 1,578,114 2,797,741 

Secretarial Fee 37,160 — 

Loss On Sale Of Fixed Assets 16,961,323 — 

Gdr Issue Expenses — 9,509,118 

Foreign Exchange Transaction Loss 3,729,694 — 

Total 367,271,268 339,549,480 

SCHEDULE. 15 


Bank Charges 18,881,251 13,006,673 

Interest On Term Loans 234,327,656 185,393,620 

Interest On Working Capital Loan 59,707,881 11,362,951 

Interest To Others 18,663,620 1,459,087 

Other Financial Charges 22,993,771 27,339,667 

Total 354,574,178 238,561,998 

: : 76 : :

Accounting Polices adopted in the preparation of Consolidate Accounts 

A. Principles of Consolidation 

The Consolidated Financial Statements relate to Sujana Universal Industries Limited (Parent Company) 

and its 100% subsidiary companies – PAC Ventures Pte. Ltd.,, Singapore, Sujana Holdings Limited, Dubai, 

Nuance Holdings Limited, Hong Kong and Sun Trading Limited, Cayman Islands have been prepared in 

accordance with Accounting Standard 21 “ Consolidated Financial Statements” read with Accounting Standard 

23 “Accounting for Investments in Associate in consolidated Financial Statements “ issued by the Institute 

of Chartered Accountants of India. 

The Consolidated accounts have been prepared based on line by line consolidation by adding together the 

book values of like items of assets, liabilities, income and expenses as per the accounts of the parent 

company and its subsidiary companies and intra Group balances/Intra Group transactions have been 

eliminated. 

The Subsidiary Company’s Financial Statements are duly audited upto 31 st May, 2008 in case of Pac 

Ventures Pte., Limited, Singapore and upto 30 th June, 2008 in case of Nuance Holdings Limited, Hong 

Kong. 

The Other Subsidiaries Company’s M/s Sujana Holdings Limited, Dubai and Sun Trading Limited, Cayman 

Islands financial statements are un audited and the same are prepared by respective company’s management 

The consolidated accounts have been prepared using uniform accounting policies for like transactions and 

other events in similar circumstances and are presented to the extent possible, in the same manner as the 

parent possible, in the same manner as the parent company’s individual accounts. 

In case of foreign subsidiaries the revenue items, assets and liabilities are converted at the rate prevailing 

as on the date of the balance sheet. 

The excess/lower of cost of parent company’s investments and other current assets/liabilities over subsidiary 

companies arisen due to the FE fluctuations is treated as foreign exchange transaction reserve or good will 

as the case may be. The exchange difference arising on consolidation on account diminution of assets or 

accretion of liabilities is recognized in the consolidated Profit & Loss Account. 

B. Details of subsidiary company considered in the consolidated accounts: 

Name of the Subsidiary Country of Shareholding Extent of Holding 

corporation as on (%) Direct 

1. PAC VENTURES PTE.LTD SINGAPORE 30.09.2008 100% 

2. SUJANA HOLDINGS LTD., DUBAI 30.09.2008 100% 

3 NUANCE HOLDINGS LTD. HONG KONG 30.09.2008 100% 

4. SUN TRADING LTD., CAYMAN ISLANDS 30.09.2008 100% 

C. Basic and Diluted Earnings per Share Rs. 

2007-08 (15 Months) 

Net Profit after Tax 631171734 

Less : Dividend on CRPS 3045250 

Dividend Tax 517692 

Net Profit available for Equity Shareholder 627608792 

No.of Equity Shares of Rs. 10/- each 123841072 

Basic Earnings per Share of Rs. 10/- each 5.07 

D. Other significant accounting policies: 

Accounting Standards 1 to 29 (to the extent applicable) issued by the Institute of Chartered Accountants 

of India have been duly considered while preparing the accounts of both holding and subsidiary company 

and the same have been explained in detail in the notes on accounts of the respective companies which 

may be referred to . Notes to Accounts annexed to respective financial statements form part of this 

consolidated financial statement. 




Date : 10.12.2008 


: : 77 : :


CONSOLIDATED CASH FLOW STATEMENT 

PARTICULARS 30.09.2008 30.06.2007 

(Rs.in Lakhs) 

(Rs.in Lakhs) 

CASH FLOW FROM OPERATING ACTIVITIES 

Net Profit before Tax 7464.59 5648.90 


Depreciation 2796.19 2106.15 

Financial Expenses 3545.74 2385.62 

Interest earned & other income -815.65 -490.22 

Operating Profit Before Working Capital Changes 12990.87 9650.45 


Decrease/(Increase)in Inventories -6292.45 -2676.45 

Decrease/(Increase)in Debtors -4311.73 -8424.48 

Decrease/(Increase)in in Loans& Advances -3488.44 -7038.78 

Increase/(Decrease)in Current Liabilities 10292.67 3434.09 

Cash Generated from Operations 9190.93 -5055.17 

Interest & Financial Charges -3545.75 -2385.62 

Other Income 815.65 490.22 

Extraordinary Item -574.05 -66.12 

Cash from Operating Activities (A) 5886.79 -7016.69 

CASH FLOW FROM FINANCIAL ACTIVITIES 

Increase/(Decrease)in Share Capital 8245.23 7688.50 

Increase/(Decrease)in Share Application money -1004.50 1004.50 

Increase/(Decrease)in W.C.loans & Term loans -1497.85 -1498.23 

Increase/(Decrease)in Dividend & Taxes paid -390.70 -895.27 

Net Cash from financing activities (B) 5352.18 6299.50 

CASH FLOW FROM INVESTING ACTIVITIES 

(Increase)/Decrease in Purchase of fixed assests -4764.74 -3687.51 

(Increase)/Decrease in investments — — 

(Increase)/Decrease in revaluation reserve -4.35 -3.47 

(Increase)/Decrease in other reserves 420.23 — 

Cash from Investment activities(C) -4348.86 -3690.98 

Net Increase in cash and cash equivalent (A+B+C) 6890.10 -4408.18 

Cash and Cash equivalent as on 30.06.2006 165.43 4573.61 

Cash and Cash equivalent as on 30.06.2007 7055.53 165.43 






Chairman 




: : 78 : :

BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE 

(Amount in Lakhs) 

I REGISTRATION DETAILS 

Registration No. 

L29309AP1986PLC006714 

Balance Sheet Date 30.09.2008 

State Code 01 

II CAPITAL RAISED DURING THE YEAR 

Public Issue 

nil 

Right Issue 

nil 

Bonus Issue 

nil 

Private Placement/Share Application Money 3987.92 

III POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS 

Total Liabilities 68641.05 

Total Assets 68641.05 

SOURCE OF FUNDS 

Paid up Capital 14820.31 

Share Application money 

nil 

Reserves & Surplus 34717.14 

Deferred Tax Liability 3346.71 

Secured Loans 15756.89 

Un Secured Loans 

nil 


Net Fixed Assets 20167.93 

Workin progress 1163.42 

Investments 1007.74 

Net Current Assets 46301.96 

Mis. Fixed Assets 0 

Deferred Revenue Expenditure 0 

Accumalated Losses 0 

IV PERFORMANCE OF THE COMPANY 

Total Turnover 124171.59 

Total Expenditure 120716.46 

Profit Before Tax 3455.13 

Profit after Tax 2871.39 

Earning per Share in Rs. 1.83 

Dividend Rate % 0 

V GENERIC NAMES OF THREE PRINCIPAL PRODUCTS / SERVICES OF THE COMPANY 

( AS PER MONETARY TERMS) 

Product Description 

Fans 

Item Code ( IT CODE) 841451 


Bearings 

Item Code ( IT CODE) 8482 


Cast Iron 

Products 

Item Code ( IT CODE) 7201130 01 

: : 79 : :

INTENTIONALLY KEPT BLANK

✂ 


Regd.Office: Plot Nos.10, 11 & 12, Survey No.172, IDA Bollaram, 

Jinnaram Mandal, Medak District, A.P. 

Regd Folio No. :.......................... 

No of Shares Held......................... 

PROXY FORM 

I/We................................................................................................................ resident(s) 

of .............................................................. being a member/members of SUJANA UNIVERSAL 

INDUSTRIES LIMITED hereby appoint Mr/Ms.......................................................................... 

of....................................................... or failing him/her..................................................... 

of................................................. as my/our proxy to attend and vote for me/us on my/our 

behalf at the Twentieth Annual General Meeting of the Company to be held on Friday, 

27th February, 2009 at 10.00 A.M and at any adjournment thereof. 

Affix 

Revenue 

Signed this the ..................day of .................. 2009 

Stamp 

Re 1.00 

Signature...................................................................... 

Note: The instrument of proxy shall be deposited at the Registered Office of the Company not 

less than 48(forty eight) hours before the time for holding the Meeting. 

✂ 

A PROXY NEED NOT BE A MEMBER. 


Regd.Office: Plot Nos.10, 11 & 12, Survey No.172, IDA Bollaram, 

Jinnaram Mandal, Medak District, A.P. 

✂ 

Member's Folio Number..................................... 

No. of Shares held..................... 

ATTENDANCE SLIP 

(for 20th AGM) 

This Attendance Slip duly filled in to be handed over at the entrance of the Meeting Hall 

Name of the Attending Member or proxy (In Block Letters) ....................................................... 

I hereby record my presence at the Twentieth Annual General Meeting to be held on Friday, 

27th February, 2009 at Plot Nos.10,11 & 12, Survey No.172, Bollaram Village, Jinnaram Mandal, 

Medak District, Andhra Pradesh at 10.00 A.M. 

✂ 

✂ 

To be signed at the time of handing over this slip .............................................. 

Member's/Proxy's Signature 

INVITATION FOR LUNCH 

Members of the Company are invited to lunch at 12.30P.M. 

On 27.02.2009 at the venue of the AGM. 

✂

SUIL-Annual Report (140209)11am.p65 - Sujana Group

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