906Annual Report 2008-09.pdf - Hindusthan National Glass ...

Hindusthan National Glass & Industries Limited 

2, Red Cross Place, Kolkata – 700001 

www.hngindia.com 

Hindusthan National Glass & Industries Limited 

63rd Annual Report 2008-09

Corporate information 

Chairman 

C. K. Somany 

Managing Director 

Sanjay Somany 

Joint Managing Director 

Mukul Somany 

Executive Director 

R. R. Soni 

Directors 

Kishore Bhimani 

Sujit Bhattacharya 

R. K. Daga 

Dipankar Chatterji 

S. K. Bangur 

I. K. Saha (Dr.) 

Late Supriya Gupta (upto February 7, 2009) 

Chief Financial Officer 

Nirmal Khanna 

Company Secretary 

Priya Ranjan 

Auditors 

Lodha & Co., Chartered Accountants 

Registered office 

2, Red Cross Place 

Kolkata – 700 001 

Phone: 033 2254 3100 

Registrar & Share Transfer Agent 

Maheshwari Datamatics Pvt. Ltd 

6, Mangoe Lane (Surendra Mohan Ghosh Sarani) 

Second floor, Kolkata – 700 001 

Works 

Rishra 

Bahadurgarh 

Rishikesh 

Puducherry 

Nashik 

Neemrana 

Banks/Financial institutions 

State Bank of India 

HDFC Bank Limited 

The Hongkong & Shanghai Banking Corporation Limited 

ICICI Bank Limited 

Bank of Baroda 

State Bank of Hyderabad 

Export Import Bank of India 

Life Insurance Corporation of India 

Across the pages 

Corporate identity 04 How we progressed in 2008-09 08 Growth of our numbers 10 

Chairman’s thoughts 12 Management statement 20 Corporate responsibility and sustainability 22 

Directors’ Report 24 Management Discussion and Analysis 32 Report on Corporate Governance 40 

Auditors’ Report 51 Balance Sheet 54 Profit and Loss Account 55 Cash Flow Statement 56 

Schedules and Notes 57 Balance Sheet Abstract 77 Section 212 78 Subsidiary Accounts 79 

Consolidated Accounts 115 

Disclaimer 

This document contains statements about expected future events and 

financial and operating results of Hindusthan National Glass & Industries 

Limited, which are forward-looking. By their nature, forward-looking 

statements require the Company to make assumptions and are subject 

to inherent risks and uncertainties. There is significant risk that the 

assumptions, predictions and other forward-looking statements will not 

prove to be accurate. Readers are cautioned not to place undue reliance 

A PRODUCT 

info@trisyscom.com 

on forward-looking statements as a number of factors could cause 

assumptions, actual future results and events to differ materially from 

those expressed in the forward-looking statements. Accordingly this 

document is subject to the disclaimer and qualified in its entirety by the 

assumptions, qualifications and risk factors referred to in the 

Management’s Discussion and Analysis Statement of the Annual Report, 

2008-09 of Hindusthan National Glass & Industries Limited.

Each time our customers are 

REPLENISHED. 

Each time our consumers are 

REFRESHED. 

Each time our employees are 

REJUVENATED. 

Each time our suppliers are 

REVITALISED. 

Each time our shareholders are 

REASSURED.

Each time someone turns to… 

A cola bottle for a drink. 

A jam bottle for a serving. 

A medicine bottle for a dose. 

A champagne bottle for a toast. 

A health supplement bottle for a dollop. 

For being protected 

by a product designed and 

manufactured by Hindusthan 

National Glass & Industries Limited. 

The bottle. 

2 | Hindusthan National Glass & Industries Limited

Hindusthan National Glass & Industries Limited | 3

HNG is India’s largest container 

glass packaging solution 

provider (and among the world’s 

fastest growing). 

A status reflected in its Indian market share of about 

65 percent. 

A respect reflected in a number of multinational and domestic 

customers. 

A customer orientation reflected in a sectoral coverage of the 

food, pharmaceuticals, liquor, beer and beverage industries. 

A robustness of business model reflected in a post-tax profit in 

a challenging 2008-09. 


Vision 

To create a world-class glass 

manufacturing plant that pursues 

quality, cost reduction and 

productivity improvement measures in 

a truly holistic manner, leading to 

customers’, shareholders’, employees’ 

and suppliers’ satisfaction; this 

integrated effort will result in the 

Company becoming an industry 

benchmark and a role model for its 

systems, processes and results. 

Potential 

The world’s population of 6.60 billion 

is expected to cross 8 billion in 12 

years. 

Two things will result. 

One, a billion people will graduate to 

the robustly consuming middle-class. 

Two, urban migration will increase to 

nearly 900 million. 

The result: An enhanced market of 

bottled products. 

At HNG, we are preparing for this 

growing market through proactive 

investments in capacity, portfolio, 

presence and efficiency. 

Enhancing value for consumers, 

community and the country. 

Identity 

The HNG Group was promoted by the 

Kolkata-based Somany family in 1952 

following the commissioning of 

India’s first fully-automated glass 

manufacturing plant at Rishra (near 

Kolkata). 

The Company is now the undisputed 

leader in India’s container glass 

industry with about 65 percent 

market share and several global 

multinationals among its brandenhancing 

customers. 

Spread 

The Company’s pan-India 

manufacturing operations are spread 

over Rishra, Bahadurgarh, Rishikesh, 

Puducherry, Nashik and Neemrana; its 

headquarter is located in Kolkata. Its 

products are also available in more 

than 20 countries. 

Asset quality 

The Company possesses an 

operational capacity of 11 furnaces 

and 43 production lines with fullyautomated 

IS machines, sourced 

from respected global centres of glass 

manufacturers like Europe 

and the US. 

This asset versatility translated into a 

container glass portfolio ranging from 

5 ml to 3,200 ml on the one hand 

and diverse colours (amber, flint and 

green) on the other. 


Plant location 

Installed capacity (MT per day) 

Rishra, West Bengal 740 

Bahadurgarh, Haryana 655 

Nashik, Maharashtra 320 

Rishikesh, Uttarakhand 356 

Neemrana, Rajasthan 180 

Puducherry 290 

Customers 

Hindustan Unilever, GlaxoSmithKline, Nestle, Koeleman, 

Global Green, Heinz and Dabur (foods); Pfizer, Cipla, 

GlaxoSmithKline, Reckitt Benckiser, Ranbaxy and Himalaya 

(pharmaceuticals); United Breweries, SABMiller, Asia Pacific 

Breweries and South Asia Breweries (beer); United Spirits, 

Pernod Ricard, Diageo, Radico and Bacardi (liquor) and Coca 

Cola and Pepsi (soft drinks). 

Certifications 

The Company’s ISO 9000:2000 quality certification resulted in 

a dependable product and process consistency. Besides, it is 

pursuing ISO 14000/18000/22000 certifications for 

comprehensive environmental compliance. 

Listing 

Our shares are listed on the National Stock Exchange, the 

Bombay Stock Exchange and the Calcutta Stock Exchange. Our 

Company enjoyed a Rs. 724.91 cr market capitalisation as on 

March 31, 2009. 

Global partners 

Batch houses from Zippe (Germany); furnaces from Sorg and 

Horn (Germany); Forehearths from Emhart (USA) and PSR 

(UK); IS machine control system from Botterro (Italy) and 

Futronics (UK); bottle transfer machines from Sheppee (UK) 

and Pennekamp (Germany); annealing lehrs from Pennekamp 

(Germany) and Carmet (USA); laboratory inspection machinery 

from AGR (USA) and bottle printing equipment from Strutz 

(USA) and Rosario (the Netherlands). 

RANBAXY 

LABORATORIES LIMITED 

Key financial metrics* 

Rs. 1,344.19 cr Rs. 235.91 cr Rs. 107.75 cr 

Total income Operating profit Post tax profit 

11.68 percent Rs. 475.97 Rs. 5 

ROCE (average) Book value Proposed dividend 

per share per share 

*Figures pertaining to 2008-09 


HOW WE 

PROGRESSED 

IN 2008-09 

In the plants 

Undertook process improvements by upgrading 

technology to narrow-neck-press-and-blow (NNPB) 

technology to reduce production costs and wastages 

on the one hand and strengthen capacity utilisation 

on the other 

Deployed ERP and SAP to reduce costs and minimise 

disruptions in operations 

Developed CAD/CAM facilities to design a variety of 

bottles in different sizes, customised to the precise 

requirements of pharmaceutical, processed foods, 

liquor and soft drink industries 

In the marketplace 

Enlisted customers like InBev, Carlsberg and John 

Distilleries, among others 

Strengthened average realisations through 

reengineering and superior service 

In the numbers 

Turnover increased 25.28 percent from 

Rs. 1,148.34 cr in 2007-08 to Rs. 1,438.60 cr 

Net sales escalated 28.37 percent from 

Rs. 1,021.30 cr in 2007-08 to Rs. 1,311.04 cr 

EBIDTA strengthened 9.89 percent from 

Rs. 214.67 cr in 2007-08 to Rs. 235.91 cr 

8

OUR GLOBAL 

OPERATING 

FRAMEWORK 

The big picture 

Emerge as one of the world’s foremost container glass 

packaging solution providers 

Blueprint to realise the big picture 

•Strategic priority 1: Grow value of the HNG brand and 

widen product portfolio 

Values 

•Accountability 

•Customer-focused 

•Team-driven 

•Strategic priority 2: Transform our go-to-market model 

to improve efficiency and effectiveness 

•Strategic priority 3: Attract, develop and retain a highly 

talented and diverse workforce 

World-class 

capabilities 

•Revenue growth 

management 

•Supply chain 

•Sales and customer 

service 

Drive long-term 

consistent 

sustainable growth 


Challenging times. Declining offtake. 

Total income (Rs. in cr) EBIDTA (Rs. in cr) Post-tax profit (Rs. in cr) Cash profit (Rs. in cr) 

2004-05 

2005-06 

2006-07 

2007-08 

2008-09 

2004-05 

2005-06 

2006-07 

2007-08 


2004-05 

2005-06 

2006-07 

2007-08 


2004-05 

2005-06 

2006-07 

2007-08 


434.36 

426.70 

521.84 

1,028.19 

1,344.19 

75.59 

73.95 

103.25 

214.67 

235.91 

31.51 

23.95 

34.24 

160.34 

107.75 

61.41 

56.70 

69.27 

203.83 

182.49 


HNG selected a difficult year to post record numbers. 

EBIDTA margin (Percent) 

Earnings per share 

(basic) (Rs.) 

Debt-equity ratio (on 

long term loans) 

Rising book value per 

share (Rs.) 

Consistent dividend 

payout (Percent) 

2004-05 

2005-06 

2006-07 

2007-08 


2004-05 

2005-06 

2006-07 

2007-08 


2004-05 

2005-06 

2006-07 

2007-08 


2004-05 

2005-06 

2006-07 

2007-08 


2004-05 

2005-06 

2006-07 

2007-08 


16.06 

15.57 

17.34 

18.69 

16.40 

28.53 

21.69 

31.01 

91.79 

61.68 

0.51 

0.58 

0.43 

0.18 

0.36 

125.04 

145.93 

175.80 

433.70 

475.97 

7 

7 

10 

40 

50 


CHAIRMAN’S 

THOUGHTS 

HNG enjoyed another year of growth and success. We 

are proud to be regarded as India’s largest and one of 

the world’s leading container glass packaging 

companies, manufacturing products that are highly 

respected in the marketplace. The HNG brand’s 

presence is spread across the Far East, Middle East, 

Africa and America. We have worked hard to ensure 

that our brand stands for quality and value and 

represents the collective teamwork of our employees 

worldwide. 

12

One of our most visible customercentric 

achievements in 2008-09 

comprised the creation of 

light-weight 

container glass 

bottles. 

Today, HNG is an industry vanguard, thanks to our decadesrich 

dedication to the simple principles of giving our 

customers what they want, when they want and how they 

want. This is what our corporate success has done to us: it has 

broadened our mission; it has made us more responsible and 

sensitive to customer demands; it has enabled us to firmly 

integrate with customer product innovation and development 

cycles, and in doing so, deeply embrace the relationship. 

This enhanced customer-centricity strengthened our 

organisational focus towards market-driving innovations and 

transformation. This constancy of purpose will accelerate 

global leadership and consequent wealth creation, benefiting 

all stake owners. 

Changing faster for the better 

At HNG, we believe in a simple dictum: transcendence 

through transformation. Transformation as in challenging 

conventions; transformation as in embracing businessimpacting 

change as a condition for forward movement; 

transformation as in inculcating a culture of innovation, 

defying all odds. At HNG, transformation has brought success 

– and success for us necessitates further transformation. 

Our transformation has done one more important thing to 

us: it has enhanced our commitment quotient – commitment 

to our customers, commitment to our employees, and 

commitment to the communities around our operational 

areas. Our customers have come to expect great products and 

services from us, which we are determined to deliver. Our 

employees have come to expect a fertile environment in which 

they can perform and a management structure that 

encourages, nurtures, values and rewards the creative process. 

Exploration of the possible – and sometimes the impossible – 

will always be encouraged. 

There is much uncertainty and unpredictability in the current 

global economic scenario, which has adversely affected 

people’s lives and ways in which business is being conducted. 

As a responsible and conscientious corporate, we are 

committed to harness the best available resources for our 

products, while upholding the highest standards of quality, 

integrity and customer-centricity. 

One of our most visible customer-centric achievements in 

2008-09 comprised the creation of light-weight container 

glass bottles. This was in view of our customers’ need to lower 

cost structures in an economy marked by declining consumer 

spends. Operational excellence lowered glass intake per tonne 

of bottles. A lighter and thinner bottle also offered our 

customers several advantages: one, optimum space utilisation 

during transportation; two, low transportation and handling 

costs; three, better asset and capacity utilisation through 

faster bottling operations, reflected in increased frequency of 

bottles filled per minute; four, lower wastage and bottle 

breakages owing to higher glass strength; and five, 


accelerated product roll-out to meet customer deadlines. Over 

2009-10, a complete switchover to the state-of-the-art NNPB 

(narrow-neck-press-and-blow) technology will enable us to 

further reduce glass consumption per tonne of bottles, 

strengthening customer relationships. 

Conscientious corporate 

As we worked towards our goals, we relied on our core 

strengths – people, operational excellence, innovation and 

integrity – to respond to the rapidly evolving market realities. 

Our growth and future prospects depend on customer loyalty, 

which we have earned through hard work in the past and 

which will continue to determine our road ahead. 

In a significant development in 2008-09, which will have a 

substantial bearing in 2009-10, the Glass Manufacturers 

Association of India, led by HNG, advocated greater consumer 

awareness by stamping the glass bottle’s year of manufacture 

on the bottle itself, quite similar to information labels stuck 

around bottles. This social initiative in terms of strengthening 

health and hygiene standards will have a two-fold impact on 

our business: 

One, enhance cullet (broken glass) availability through 

improved old bottle recycling. This initiative will enable 

conscious consumers to dispose of old bottles for 

recycling, enhancing overall critical raw material 

availability. 

Two, shorten the bottle reusability cycle substantially 

from around 25 times now, growing product demand and 

accelerating profitable business growth. 

Outlook 

To retain market leadership, we will continue to cultivate 

a culture that does not fear failure. In 2009-10, we are 

undertaking container glass capacity increments through a 

sizeable expansion in installed capacity. 

We invite you to be a part of a Company that is not only 

India’s largest, but is strategising to emerge as one of the 

world’s largest container glass packaging companies. 

Sincerely 

CK Somany 

Chairman 


Our growth and 

future prospects 

depend on customer 

loyalty, which we 

have earned through 

hard work in the past 

and which will 

continue to determine 

our road ahead. 

15

LOCALLY 

MANUFACTURED 

BOTTLES. 

GLOBALLY 

BENCHMARKED 

STANDARDS. 

Customer 

The Global Green Company Limited (GGCL) is a part of the 

diversified USD 3 billion Avantha Group. GGCL possesses 

multiple plants across India and Europe to process gherkins. 

Customer objectives 

GGCL desired to evolve its product sourcing with the following 

objectives in mind: indigenise jars complying with 

international standards on the one hand and reduce costs on 

the other. 

Our response 

HNG designed and developed customised jars in line with the 

customer’s needs. It imported new hot-end coating 

equipment for the first time in India and revamped its coldend 

coating technology. These proactive investments 

translated into a number of benefits: a compliance with 

international bottling standards and requirements, coat layer 

permanence, enhanced scratch resistance, increased bottle 

strength and improved bottle surface lubrication. 

Customer benefits 

The improved product immediately translated into a superior 

performance at the customer’s packaging line in the following 

ways: 

Accelerated production by nearly 40 jars per minute 

Enhanced packing line efficiency by over 22 percent 

Reduced wastages/bottle loss from 1 percent to less than 

0.5 percent 

Customer satisfaction 

“The gherkin jars developed by HNG, helped us achieve 

the desired objectives — the quality of jars continues to meet 

international standards and line performance has seen a 

substantial improvement. We are eager to maintain a steady 

long-term relationship with HNG, not only for this line 

of products, but other SKUs as well!” Santosh Nair, 


Vice President, Procurement, Global Green Company Limited* 

* Global Green is a multinational food company, engaged in 

the growth, manufacture, distribution and sale of pickled 

cucumbers (gherkins, cornichons, pickles and relish), sweetcorn, 

silverskin onions, peppers (jalapeño and paprika), 

cherries, capers and mixed vegetables. 

HNG imported new hot-end 

coating equipment for the 

first time 

in India 

and revamped its cold-end 

coating technology. 

17

ENHANCING 

AESTHETICS. 

OPTIMISING 

COSTS. 

Customer 

The Coimbatore-based Shiva Distilleries Limited is engaged in the production 

of a range of India Made Foreign Liquor with an annual production capacity of 

6.6 million cases, leading to a Rs. 405-cr turnover. 

18

Customer objectives 

Some time ago, a company approached HNG with the 

following needs: 

To graduate to a fresh bottle design, optimise line 

speeds, improve productivity and reduce marketing time 

To strengthen brand equity in a competitive marketplace 

Our response 

HNG responded with the following initiatives: it designed a 

180 ml bottle with its principal axis set to enhance bottle 

compactness, improved glass distribution, enhanced tensile 

strength, reduced breakages and augmented line efficiencies. 

Customer benefits 

Our customer enjoyed the following benefits: 

Improved overall line efficiencies 

Reduced wastages 

Aesthetically differentiated product, leading to a 

competitive edge 

Customer speak 

“The 180 ml bottle developed by HNG helped us meet our 

desired objectives. The breakage level for this bottle vis-à-vis a 

standard bottle reduced substantially with an overall 

improvement in line performance. We look forward to 

working on more designs with HNG to improve our brand 

equity and achieve cost optimisation benefits. 

Dr. S.V. Balasubramaniam, Chairman, Bannari Amman 

Group* 

*Shiva Distilleries Limited, a part of the Bannari Amman 

Group, was established in 1983 at Coimbatore, Tamil Nadu. 

The company is engaged in the production of a range of 

Indian Made Foreign Liquor (IMFL) and possesses the largest 

market share in Tamil Nadu. 

HNG designed a 180 ml bottle with 

its principal axis set to 

enhance bottle 

compactness, 

improved glass distribution, 

enhanced tensile strength etc. 


MANAGEMENT 

STATEMENT 

The Management of Hindusthan National Glass 

& Industries Limited discusses how the Company’s 

customer focus helped navigate it through 

the 2008-09 slowdown as well as the road ahead. 

At HNG, we reported a successful 

2008-09 in an environment of 

financial and industrial uncertainties, 

which makes our performance all the 

more creditable. 

At HNG, we believe that it is customer-centricity 

that will align us with evolving market 

requirements leading to proactive product 

development; we believe that it is customercentricity 

that will protect our existing relationships 

leading to the prospect of a stable and sustainable 

income; we believe that it is customer-centricity 

that will enable us to grow our topline and cover 

our fixed costs more effectively, leading to 

enhanced margins and profits. As a result, we see 

customer-centricity as the basic driver of our 

leadership position within India’s container glass 

industry. 

We see 

customercentricity 

as the basic driver of 

our leadership position 

within India’s container 

glass industry. 

During the last financial year, the biggest challenge 

was a decline in the offtake of products 

manufactured by our customers leading to a 

greater need for them to reduce costs. As a 

responsive organisation, we addressed this reality 

directly through the development of the narrowneck-press-and-blow-technology 

(NNPB) for 

container glass bottles. This advanced container 

glass manufacturing technology helped rationalise 

bottle weight from 15 percent to 35 percent 

without in any way compromising glass 

consistency and tensile strength on the one hand. 

Much of this benefit was passed on to the 

customer. So we would like to state with 

20

satisfaction that in a year when the market environment 

turned challenging for most companies, HNG helped its 

customer emerge more competitive. 

In 2007-08, we merged ACE Glass Containers Limited with our 

Company, whose full benefit was reflected in the Company’s 

working. ACE Glass Containers Limited was the second largest 

Indian container glass manufacturer after us with a capacity of 

0.37 million TPA across Rishikesh, Puducherry and Nashik. The 

merger widened our margin-accretive product portfolio, 

enhanced our economies-of-scale and strengthened our 

customer service flexibility. This immediately translated into 

enhanced visibility. For instance, our Company was ranked 

307th among the top 1,000 companies – ranked on the basis 

of net sales and other financial parameters – by Business 

Standard in March 2009, the only company from our industry 

to figure in the list. Our Company was also rated the best 

Indian company in the ‘Glass & Ceramics’ category by Dun & 

Bradstreet, strengthening our brand. 

packaging demand will drive the demand for container glass 

over plastic alternatives. 

We are passing through a period of economic uncertainty. In 

this environment, there will be some local or global acquisition 

opportunities around an attractive price-value. We must 

apprise our stakeholders that we will address those 

opportunities with adequate prudence and entrepreneurial 

alertness but only after we are adequately convinced that the 

addition will enhance our overall organisational value. 

We also expect to complete the implementation of the NNPB 

technology across all our manufacturing units. The total 

implementation of SAP across our organisation will enhance 

accurate information availability and reinforce our customercentricity 

and market-responsiveness. 

As a proactive organisation, we have already commenced the 

seed marketing of imported float glass under guided technical 

specifications through our existing distributor network in 

Gujarat, Rajasthan and Madhya Pradesh. We expect to widen 

our presence across the rest of western and northern India as 

well as exports. 

Container glass enjoys its own importance in the packaging 

industry, despite the rapid development of packaging 

alternatives for an important reason: established environment 

friendliness reflected in its biodegradability and recyclability. 

We see an attractive scope in our business on account of the 

fact that 10–12 percent of all food and beverages are packed 

in glass containers in India, whereas the corresponding figure 

is 40–50 percent across developed countries. Besides, the 

growing awareness on account of benign and hygienic 

21

CORPORATE 

RESPONSIBILITY 

AND SUSTAINABILITY 

AT HNG 


Our true wealth at HNG is not what is reflected in the 

size of our bottomline but in the respect that we evoke 

among the stakeholders and communities associated 

with us. This respect is derived from the broad 

responsibility of our actions, which makes our business 

truly sustainable for the benefit of all those associated 

with us. The various initiatives to do so comprise the 

following: grow the HNG brand; expand the product 

portfolio; improve efficiency and effectiveness; attract, 

develop and retain a talented workforce and align our 

operating model with the best environmental 

standards. 

For each of these priorities, we have developed corresponding focus 

areas and aligned those against stakeholder expectations. We are also 

working to embed sustainability into our business processes through 

various initiatives. We have designated managers – for internal and 

external CSR engagement – who work with our subject matter experts to 

track progress against our targets and oversee data-gathering process for 

reporting purposes. These managers also work closely with our key 

external stakeholders to ensure that our efforts are in line with 

expectations. We ensure that all our employees complete a training in 

ethics; we also ensure that our sales and management representatives 

undergo competition law and industry codes training as a part of our 

CSR endeavour. 

We have focused on four CSR areas – critical to our business and key for 

our stakeholders – comprising the following: 

Water stewardship 

Sustainable packaging and recycling 

Energy conservation and climate change 

Productivity gains and improvements 


DIRECTORS' 

REPORT 

We are delighted to present the Annual Report together with the audited accounts of our business and operations for the 

year ended March 31, 2009. 

Financial Highlights 

(Rs. in lacs) 

Year ended March 31, 2009 Year ended March 31, 2008 

Gross sales (including excise duty) 1,43,860 1,14,834 

Profit before interest, depreciation and tax 23,591 21,467 

Interest and finance charges 4,345 2,347 

Profit before depreciation and tax 19,246 19,120 

Depreciation 7,474 7,013 

Profit before Tax 11,772 12,107 

Provision for Tax 997 (3,927) 

Profit after Tax 10,775 16,034 

Balance brought forward from previous year 1,072 706 

Amount available for appropriation 11,847 16,740 

Appropriation 

General Reserve 7,000 14,850 

Debenture Redemption Reserve 1,250 – 

Proposed Dividend 873 699 

Tax on Dividend 148 9,271 119 15,668 

Balance carried forward to the next year 2,575 1,072 


Review 

There was a revenue growth of 25% during the financial year 

2008-09 as against 21% in the last year. PBIT recorded a growth 

of 11.51% despite of there being global economic meltdown 

and general recession. This is attributable to efficient cost 

management and prudent operating practices. 

Dividend 

In view of your Company’s satisfactory performance, the 

Directors recommend a dividend of 50% i.e. Rs. 5 per equity 

share for the financial year ended March 31, 2009. 

Outlook 

India continues to be one of the fastest growing economies of 

the world. A number of factors like growing disposable income 

coupled with change in the demographic pattern of the 

population will help in generating more demand for packaged 

goods, hence creating better opportunities for the Company. 

Further, the growth in beer, pharma, food, liquor and other 

high-end sectors will drive revenue growth and translate into 

profitability. Your Company is well-equipped to grow and 

prosper with the opportunities associated with expanding 

markets. However, your Company faces substitution threats 

from PET bottles and other such alternatives. 

Directors 

The Board wishes to place on record its sincere appreciation and 

gratitude for the unstinted support and guidance received from 

Supriya Gupta who has left for his heavenly abode. 

During the year under review, the Board appointed Shri. R. R. 

Soni as Executive Director w.e.f. October 27, 2008. 

Shri. Kishore Bhimani, Shri. Sujit Bhattacharya and Shri. S. K. 

Bangur, retire by rotation and being eligible, offer themselves 

for re-appointment. 

Trust Shares 

Pursuant to amalgamation of Ace Glass Containers Limited 

with the Company, 2141448 shares and 1368872 shares were 

issued to HNG Trust and Ace Trust respectively. In terms of 

an undertaking given to the Bombay Stock Exchange, the 

Company is required to make disclosures pertaining to utilisation 

of proceeds of shares allotted to the said Trusts until they are 

extinguished. During the financial year ended on March 31, 

2009, no shares lying in the account of the Trusts were 

disposed off. 

Fixed Deposits 

The Company did not accept any deposits from the public during 

the financial year 2008-09. 

Consolidated Financial Statements 

Consolidated Financial Statements are prepared in accordance 

with Accounting Standard 21 read with Accounting Standard 

23, issued by the ICAI and forms part of this Annual Report. 

Auditors’ Report 

The Auditors’ Report read with notes to accounts is selfexplanatory. 

Regarding Auditor’s observation at Point No. 2 of 

their report that no approval from the Central Government was 

obtained for carrying out transactions with M/s Mould 

Equipment, a firm in which the Directors of the Company are 

indirectly interested, it is clarified that the Company is already in 

process of obtaining the approval of the Central Government. 

Listing on the Stock Exchanges 

During the year, the Company’s shares were listed at the 

National Stock Exchange (NSE). Besides, the Company’s shares 

continue to be listed at the Bombay and Calcutta stock 

exchanges respectively. 

The annual listing fees for the financial year 2009-10 have been 

paid to all these exchanges. 

Auditors 

M/s Lodha & Company, Chartered Accountants, retire at the 

conclusion of the ensuing Annual General Meeting and have 

confirmed their eligibility and willingness to accept the office of 

the Statutory Auditors for the financial year 2009-10, if reappointed. 

M/s Singhi & Co., Chartered Accountants, retire at the 

conclusion of the ensuing Annual General Meeting and have 

confirmed their eligibility and willingness to accept the office of 

the Branch Auditors for the financial year 2009-10, if reappointed. 

Directors’ Responsibility Statement pursuant to 

Section 217(2AA) of the Companies Act, 1956 

The Directors hereby confirm that: 

i) in the preparation of the Annual Accounts for the financial 

year 2008-09, the applicable Accounting Standards have been 

followed and that there are no material departures; 


ii) they have selected such accounting policies and applied them 

consistently and made judgments and estimates that are 

reasonable and prudent so as to give a true and fair view of the 

state of affairs of the Company and of the profit of the Company 

for the financial year ended on March 31, 2009; 

iii) 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; 

iv) they have prepared the Annual Accounts on a ‘going concern’ 

basis. 

Corporate Governance 

The report on Corporate Governance along with the Certificate 

of the Statutory Auditors, M/s. Lodha & Co., confirming the 

compliance of conditions of Corporate Governance as stipulated 

under Clause 49 of the Listing Agreement forms part of this 

Annual Report. 

Subsidiary companies 

Particulars relating to subsidiary companies as required under 

Section 212 of the Companies Act, 1956 are annexed hereto 

and forms part of this Annual Report. The Consolidated Financial 

Statements include the financial information of its subsidiaries. 

Exports 

During the year, direct export turnover of the Company was 

Rs. 5,773 lacs, compared to Rs. 4,032 lacs achieved during the 

preceding financial year. Continuous efforts are ongoing to tap 

the export market for which there exists great potential. 

Personnel and Industrial relations 

Your Company is strengthening and developing human 

resources and systems to improve overall efficiency and 

motivation. The principal initiatives undertaken by the Company 

comprised skill development and acquisition programmes and 

yoga classes, to name a few. Industrial relations continued to 

remain cordial during the year. 

217(2A) of the Companies Act, 1956 and rules framed 

thereunder, forms part of this Annual Report. 

Conservation of energy, technology absorption 

and foreign exchange earning and outgo 

The statement containing the required particulars under 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 are annexed hereto and forms part of this report. 

Corporate Social Responsibility 

Your Company endeavours blending optimally its business 

senses with corporate care and instill an utmost commitment to 

social responsibilities either directly or through its affiliates. 

Your Company has established at Bahadurgarh, the Bal Bharti 

School where not only the children of the Company’s employees 

are benefited but also those residing in peripheral areas of the 

Bahadurgarh Plant. It has also promoted healthcare benefits by 

contributing to corpus funds of hospitals and setting up special 

programs viz. eye testing campaigns, heart treatment for 

children etc. Parks and gardens such as the McPherson Square, 

now called Maharana Pratap Udyan in South Kolkata are 

continuing to be maintained by the Company to provide an 

environment where citizens can relax and take in fresh air amidst 

the city’s chaos. 

Social responsibility and social accounting remain at the core of 

your Company’s business model. 

Acknowledgments 

The Directors wish to express their sincere appreciation for the 

continued support and co-operation received from the financial 

institutions, banks, government authorities, customers, 

shareholders and stakeholders. The Directors also place on 

record their deep appreciation for the valuable contribution of 

its employees at all levels and look forward to their continued cooperation 

in realisation of the corporate goals in the years 

ahead. 

For and on behalf of the Board 

Statement of employees 

Statement of particulars of employees as required under Section 

Kolkata 

June 20, 2009 

C. K. Somany 

Chairman 


ANNEXURE TO 

THE DIRECTORS’ 

REPORT 

Information pursuant to Section 217(1)(e) read with Companies 

(Disclosure of Particulars in the Report of Board of Directors) 

Rules, 1988 and forming a part of the Directors’ Report for the 

year ended March 31, 2009. 

I. Conservation of Energy 

Energy conservation measures taken 

1. Increased power factor from 0.97 to 0.99 by installing the 

Capacitors. 

2. Energy savings by routing dry air to Furnaces. 

3. Side Insulation done to reduce LPG consumption. 

4. Construction of stand by Thickner in Sand Plant for water 

conservation by recycling the used water. 

5. Replacement of 250 watt High Power sodium vapor Lamp 

with 108 watt CFL Lamp. 

6. Your Company contemplates making such investments as and 

when suitable to reduce energy consumption. The material 

impact of such measures on the production cost therefore 

cannot be quantified at this stage. 

FORM - A 

Disclosure of particulars with respect to Conservation of Energy 

Particulars Unit Year ended 2008-09 Year ended 2007-08 

A. Power and fuel consumption 

1. Electricity 

a) Purchased unit 000 KWH 1,75,513 1,52,102 

Total amount Rs. in lacs 6,638.21 5,424.10 

Average rate/unit Rs. 3.78 3.57 

b) Own generation 

Through diesel/H.P.S oil / Furnace oil 

By generator unit 000 KWH 27,059 17,531 

Units per litre of oil 3.91 4.31 


c) Own generation (through L.D.O.) 

By generator unit 000 KWH – 15,490 

Units per litre of oil – 3.73 

Average rate/unit Rs. – 4.81 

d) Own generation (through LNG) 

By generator unit KWH 5,06,64,690 4,25,44,484 

Units per litre of MMBTU of LNG 103.72 106.64 


2. F-oil /RFO 

Quantity KL 76,409 51,809 


Average rate/unit Rs. 25,127 19,025 


Particulars Unit Year ended 2008-09 Year ended 2007-08 

3. L.N.G. 

Quantity MMBTU 1,20,365 17,12,334 


Average rate/unit Rs. 298 234 

4. i) L.P.G. 

Quantity MT 9,473 8,421 



ii) L.D.O. 

Quantity KL – 7.54 

Total amount Rs. lacs – 2.29 

Average rate/unit Rs. – 30,348 

iii) H.S.D. 

Quantity KL 127 1,477 

Total amount Rs. in lacs 41.79 425.29 


iv) H.P.S. oil 

Quantity KL 116 20,882 

Total amount Rs. lacs 33.83 4,439.64 


B. Consumption per unit of production 

Glass containers and tumblers MT 7,67,971 6,91,359 

Electricity KWH 330 329 

L.P.G. KG 12.34 12.18 

L.D.O. LTR 0.00 0.01 

F-Oil/ RFO / Equv.Oil LTR 99.50 74.94 

LNG MMBTU 1.57 2.48 

H.S.D LTR 0.17 2.14 

H.P.S. LTR 0.15 30.20 

Notes: 

1. The Company manufactures only container glass. 

2. Variation in consumption of power and fuel is attributable to enhanced production capacity. 


FORM B 

II. Disclosure of particulars with respect to 

technology absorption 

A. Research and Development (R&D) 

Research & Development continues to remain a focal point in 

our efforts towards improvement. Energy consumption and 

absorption have been principal areas of action. As the Company 

does not have any exclusive R&D facilities, it carries out its 

developmental activities for process innovation and product 

development as a part of its business process. 

Benefits Derived 

As a result of Company’s continuous growth in Research & 

Development, there had been reduction in cost of production. 

Future plans of action 

The Global Economic scenario makes the year ahead 

challenging. The Company is relying on its innovative strengths 

in the face of challenges to create strong differentiators for its 

customers. 

Your Company will continue to invest in R & D activities to 

enhance productivity and operational efficiency to create savings 

for its customers and increase its profitability. 

Expenditure on R&D 

During the year, expenditure incurred on Research and 

Development are as enumerated below: 

(Rs. in lacs) 

2008-09 2007-08 

a. Capital – – 

b. Recurring 38.26 7.91 

c. Total 38.26 7.91 

d. Total R & D expenditure as 

a percentage of the turnover Insignificant Insignificant 

B. Technology Absorption, Adaptation and Innovation 

Your Company continues to focus on daily innovations in shape 

and quality of its product and in energy saving devices. To name 

a few, the initiatives taken by the Company and the benefits 

derived therefrom in the year under review are: 

Two IS Machines which were replaced with latest AIS triple 

gob 12 section Machine, optimised Plant performance. 

Two New Vacuum Pumps which were installed improved 

quality and productivity. 

Automatic Moisture Measurement System installed in batch 

houses for measurement and correction of silica sand moisture. 

On line Oxygen Measurement and Automatic FO/ Combustion 

Air Ratio Correction System from STG, were installed to conserve 

Furnace oil consumed. 

Developed its top geared CAD/CAM facilities to design bottles 

in various shapes customised to the requirements of 

pharmaceutical, cosmetic, processed food, liquor and soft drinks 

industries. 

Modern ERP application software like SAP is being installed to 

reduce cost and minimise disruptions in the Company’s 

operations. 

III. Foreign Exchange Earnings and Outgo 

Your Company has taken initiatives to strengthen its strategic 

presence globally by constantly accessing new sale avenues in 

overseas markets of Bangladesh, USA, South Africa, Kenya, 

Australia, Hong Kong, to name a few. During the financial year 

2008-09 the Company had recorded an increase in export by 

Rs. 17.41 Crores. The foreign exchange earnings and outgo of 

the Company is detailed below 

(Rs. in lacs) 

Current year Previous year 

(i) Earnings in foreign exchange 5,772.77 4,032.46 

(excluding indirect exports of 

Rs. 6,538.14 lacs; previous year 

Rs. 3,009.80 lacs and exports 

to Nepal Rs. 1,419.95 lacs; 

previous year Rs. 169.19 lacs) 

(ii) Expenditure incurred in 

foreign exchange 

1. Raw materials 6,489.33 5,698.52 

2. Capital goods 5,131.73 1,939.26 

3. Components, spare parts 4,894.01 1,497.50 

and repairs 

4. Other expenses 384.84 272.24 

Kolkata 

June 20, 2009 


C. K. Somany 

Chairman 


The Board of Directors, at its meeting held on October 31, 2005 had appointed Mr. Sanjay Somany (Managing Director), Mr. Mukul 

Somany (Joint Managing Director) as Chief Executive Officers (CEO) of the Company. Further, w.e.f. February 20, 2009 Mr. N. Khanna 

was appointed as the Senior Vice President (Finance) & Chief Financial Officer (CFO) of the Company. 

CEO & CFO Certification 

We, Sanjay Somany, Managing Director; Mukul Somany, Joint Managing Director and Nirmal Khanna, Sr. Vice President (Finance) 

and Chief Financial Officer, responsible for the finance function certify that- 

(a) We have reviewed the Financial Statements and the Cash Flow Statement for the year ended March 31, 2009 and to the best of 

our knowledge and belief: 

(i) these statements do not contain any materially untrue statements or omit any material fact or contain statements that might 

be misleading; 

(ii) 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. 

(b) To the best of our knowledge and belief, no transactions entered into by the Company during the financial year ended March 

31, 2009 are fraudulent, illegal or violating the Company’s code of conduct. 

(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the 

effectiveness of internal control systems of the Company pertaining to financial reporting. Deficiencies in the design or operation of 

such internal controls, if any, of which we are aware have been disclosed to the Auditors and the Audit Committee and steps have 

been taken to rectify those deficiencies. 

(d) We have indicated to the Auditors and the Audit Committee: 

(i) That there has not been any significant change in internal control over financial reporting during the year under review; 

(ii) That there has not been any significant change in accounting policies during the financial year 2008-09 requiring disclosure 

in the notes to the financial statements; and 

(iii) That during the year under review, we are not aware of any instance of significant fraud and involvement therein of the 

management or any employee having a significant role in the Company’s internal control system over financial reporting. 

Nirmal Khanna Mukul Somany Sanjay Somany 

Senior Vice President (Finance) Joint Managing Director Managing Director 

Chief Financial Officer (Chief Executive Officer) (Chief Executive Officer) 

Kolkata 

June 20, 2009 


Particulars of Employees in Terms of Section 

217(2A) of The Companies Act, 1956 

Sl. Age Qualification Date of Designation Gross Last Employment 

No. Name (Years) & Experience Appointment (Nature of Remuneration held (Designation) 

in years Duties) (Rs.) 

1 Mr. Sanjay Somany 50 B. Com. Dip. 01.10.2005 Managing 1,35,01,378 Glass Equipment 

In Diesel Engg. Director (India) Ltd. 

29 years (To Manage the (Managing Director) 

affairs of the 

Company on day 

to day basis) 

2 Mr. Mukul Somany 43 B. Com (Hons.) 01.10.2005 Jt Managing 1,37,73,534 None 

22years 

Director (To manage 

the affairs of the 

Company on day 

to day basis) 

3 Mr. R. R. Soni 50 B.Com (Hons) 27.10.2008 Executive Director 26,33,585 Grasim Industries Ltd. 

F.C.A. 

(Sr. Vice President) 

27 years 

Notes: 

1. Remuneration includes Salary, Commission, and contribution to P.F. Gratuity and other facilities. 

2. Mr.C.K.Somany is related to both Mr.Sanjay Somany and Mr.Mukul Somany and both of them are also related to each other. 

3. Mr. R. R. Soni who was designated as Sr. President & Chief Financial Officer, was appointed as the Executive Director w.e.f. from 

October 27, 2008. 

4. All appointments of the above employees are contractual. 


Kolkata 

June 20, 2009 

C. K. Somany 

Chairman 


MANAGEMENT 

DISCUSSION 

AND ANALYSIS 

Indian packaging industry 

Indian packaging industry is estimated at US$ 14 billion and 

growing at a rate of more than 15% annually. These figures 

indicate a change in the industrial and consumer set up. 

World glass container per capita consumption (Kg.) 

The Indian fascination for rigid packaging remains intact. 

It is estimated that more than 80% of the total packaging in 

India constitutes rigid packaging, the oldest and the most 

conventional form of packaging. The remaining 20% comprises 

flexible packaging. 

India's per capita packaging consumption is less than US$ 15 

against world wide average of nearly US$ 100. 

The large and growing Indian middle class, along with the 

growth in organised retail in the country, are driving demand in 

the packaging industry. Another factor, providing substantial 

stimulus to the packaging industry, is the rapid growth of 

exports, requiring superior packaging standards for the 

international market. [Source: IBEF] 

Container glass industry 

Overview 

The Indian container glass market is estimated at 320 million 

euro accounting for 12% of the packaging industry. The market 

for container glass has been growing at a rate of 8% over the 

last five years. The demand in the container glass industry is 

driven by a growth in end-user segment like processed foods 

(FMCG), beverages, beer, liquor, pharmaceutical and retail. 

Advantage glass 

Environment friendly 

Natural product 

Lowest pollution (total life cycle) – emissions at various recycling 

levels are lower in glass compared to aluminium and PET 

Light and convenient 

Inertness to heat 

Inertness to ultra-violet rays 

Visibility of product 

Lowest cost (per life cycle) 

Longer re-cyclability 

Versatility of design 


The recycling loop 

Glass recycling 

Save energy in manufacturing for each tonne of cullet 

(recyclable glass) used, energy consumption is reduced by 2.5% 

Reduces emissions (including CO 2 ) 

Preserves raw materials and landscapes 

Each tonne of cullet used means 

1 tonne less of land fill 

Over 1 tonne less of natural resources depletion 

Growth drivers 

Growing food processing industry 

The Indian food market, according to the 'India Food Report 

2008', is estimated at over US$ 182 billion, and accounts for 

about two thirds of the total Indian retail market. Further, 

according to consultancy firm McKinsey, the retail food sector in 

India, is likely to grow from around US$ 70 billion in 2008 to 

US$ 150 billion by 2025, accounting for a large chunk of the 

world food industry. This would grow from US$ 175 billion to 

US$ 400 billion by 2025, driving the demand for packaging 

alternatives, especially glass containers. [Source: IBEF] 

Increasing rural consumption 

The FMCG industry in India was worth around US$ 16. 03 billion 

as on August 2008, and the rural market accounted for a robust 

57% share of the total FMCG market in India, overtaking the 

urban market (43%). The rural per capita consumption of 

FMCGs would equal to current urban levels by 2017. Industry 

analysts also expect the FMCG sector in rural areas to grow 40% 

against 25% in urban. [Source: IBEF] 

Growing beer consumption 

The Indian beer industry has been witnessing steady growth of 

7-9% per year over the last 10 years. The rate of growth 

remained steady in recent years, with volumes passing from 

mere 70 million cases in 2002 to 155 million cases in 2008. The 

Indian beer market is dominated by strong beers (>5% alcohol 

by volume), which accounts for 70% of the total beer industry. 

The premium beer market is a mere 5% of the total but this 

segment is rapidly expanding, touching a growth rate between 

35-40%. As a result, the demand for container bottle will surge. 

[Source: All India Brewers’ Association] 

Outlook 

The Indian economy is projected to achieve a sustainable GDP 

growth of around 6.5% whereas the annual growth of the 

packaging industry is expected to double to around 20-25%. 

The container glass industry, which grew at a compounded 

annual growth rate (CAGR) of 8% over five years, is expected to 

grow over 8% in the future. [Source: IBEF] 

The demand for container glass will grow on account of the 

forecasts that packaging material for beverages will mainly be of 

glass, especially for high quality packaging. Glass container plants 

will improve technology levels to produce thin and light-weighted 

bottles. Beer bottles should be made in more specifications, 

meeting the demands of customers at various levels. Based on 

the analysis of the current market demands at home and abroad, 

tubular vials for antibiotic use will increase gradually, although 

injection vials will still remain in the greatest demand. 

Business driver – 1 

Raw material resource management 

At HNG, corporate sustainability is derived from an ability to 

steady raw material cost structures across various market cycles 

either by tying up with new vendors or through acquiring lease 

rights. The Company’s principal raw materials comprises sand 

(quartz), limestone (calcite), cullet (broken recyclable glass), soda 

ash, dolomite and feldspar. Soda ash prices constituted 49 

percent of the total raw material cost (value wise), followed by 

cullet (25 percent), sand (12 percent) and other raw material 

(14 percent). The Company’s priority in this regard continued 

an emphasis on modest raw material cost combined with 

anytime availability leading to efficient, uninterrupted 


production at all times. 

Highlights, 2008-09 

Leveraged a decades-rich relationship with soda ash vendors 

like Magadi (East Africa), Tata Chemicals, Gujarat Heavy 

Chemicals and Nirma leading to stable supplies 

Widened supply sources through the enlistment of a chemical 

soda ash supplier from Iran 

Imported around 50 percent of its annual soda ash 

requirement of 100,000 tons 

Hedged against unforeseen supply disruptions through an 

average 20 days inventory for raw materials available in vicinity 

of 250 kms and 30 days inventory for other critical raw materials 

Reinforced the price-value proposition through relatively stable 

raw material sourcing despite price revisions 

Used natural soda ash over chemical soda ash with a 

corresponding price advantage of around 10 percent 

Road ahead 

To increase quantity of imported Soda Ash from 50% to 70% 

Proposed entry into long-term (annual) contracts with vendors 

leading to win-win situations 

Proposed organised cullet collection from vendors, improving 

availability 

Proposed optimisation of logistic costs through silica 

procurement from captive mines located within 250 km of each 

plant (Prospecting Licenses applied for) 


Manufacturing and operations 

At HNG, our competitive edge is derived from an ability to 

service the growing needs of customers. In turn, this advantage 

is derived from its position as the largest Indian container glass 

manufacturer with planned growing capacities. 

Our six manufacturing facilities 

Rishra 

Bahadurgarh 

Rishikesh 

Puducherry 

Nashik 

Neemrana 

Automated 

batch-mixing 

facility 

IS 

manufacturing 

lines 

On-site bottle 

printing facility 

On-site mould 

repair shop and 

design facility 

Amber, flint 

and green glass 

manufacturer 

Three furnaces 

IS manufacturing 

lines 


printing facility with 

four decorating lines 

Foundry and mould 

workshop 

100% energy feed 

through captive power 

generating facility 

Amber, flint and 

green glass 

manufacturer 

Two furnaces 

Furnace II used 

for Green glass 

manufacture 

Off-site printing 

facility with three 

decorating lines 

One furnace 

Fully automated 

batch-mixing facility 

On-site printing 

facility with three 

decoration lines 

On-line automatic 

OI inspection 

machines 

On-site modern 

finished goods 

warehouse 

Sand beneficiation 

plant, foundry and 

mould workshop 

One Furnace 

IS manufacturing 

lines 


printing facility 

with three 

decorating lines 

Mould workshop 

for product design 

and manufacture 

One 

furnace 



Implemented vacuum pumps in production lines, enhancing 

output rate, quality and energy efficiency. 

Added a booster in a Bahadurgarh furnace, enhancing 

capacity and reducing power consumption. 

Reduced bottle weight on an average 15 percent through 

innovative redesign; the weight of 180 ml mcd-1 bottles 

declined 13 percent from 217 grams to 189 grams, 377 mcd-1 

bottles declined 15 percent from 352 grams to 300 grams, 750 

mcd bottles declined 16.08 percent from 628 grams to 527 

grams, pickle bottles declined 7.50 per cent from 200 grams to 

185 grams and glucose bottles declined 10 percent. 

Drove continuous change in container bottle design, 

developing new products. 

Introduced Japanese technology to shrink job change and 

stabilisation time, enhancing capacity utilisation 

Commenced hot end and cold end coating through lubrication 

for scratch resistant bottle manufacture, which increased bottle 

strength and longevity 

Developed new moulds and casts to reinforce moulding and 

casting operations 

Changed mould metal mix from cast iron to Minox (bronze), 

which increased machine speed, enhanced quality and reduced 

defects 

Virtually eliminated storage breakage from an erstwhile 0.1 

percent through efficient pallet stacking. 

Implemented ERP to integrate operations, planning and 

decision-making. 

The benefits of light weighting 

Consumer benefit 

Enhanced availability 

Reduced transportation cost 

Accelerated bottling process 

Increased bottles per ton 

Reduced price per bottle 

Improved bottle quality 

Enhanced bottle transparency 

Increased strength following uniform 

and optimum wall thickness 

Company benefit 

Faster production rate (productivity increased by 8–10 percent) 

Optimum raw material use 

Overall cost reduction 

Increase in profitability 

The science of light weighting 

Existing bottle glass is analysed 

Analysis result leads to conclusion of how much weight 

reduction is possible 

Bottle design is drawn such that during forming, no glass 

distribution related issues should arise; should have a 

smoothened profile making blowing easier and increasing 

forming efficiency 

Once the design is approved engineering commences and 

sample mould casting is sent for 

Internal trial is conducted (bottle performance check in the 

lines) 

Customer approval is sought 

After approval receipt, commercial production commences 

Road ahead 

Proposed implementation of the vacuum pump across all 

production lines by 2009-10 

Proposed capacity expansion by 50 tonnes and 100 tonnes 

through the re-building of Bahadurgarh furnaces in 2009-10 

Proposed Rs. 170 cr capacity expansion from 600 TPD to 800- 

850 TPD in 2009-10, estimated to operationally break-even by 

2010-11 

Proposed commercialisation of narrow-neck-press-and-blow 

(NNPB) operations across all plants leading to enhanced light 

weighting by 25–30 percent 

Projected commissioning of Rs. 600-cr greenfield float glass 

manufacturing facility in Vadodara (Gujarat) by September 

2009 



Quality 

At HNG, quality is not an intangible virtue, but represents the 

convergence of all product attributes to enhance durability and 

progressively evolve from breakdown-maintenance to preventive 

maintenance philosophy. 

The Company’s ISO 9000:2000 certification vindicates its quality 

brilliance, catering to customer specifications with inspection 

across 140 defect parameters, which are well within customer 

tolerance levels. 


Tightened supervisory control on job change to enhance 

product quality 

Received ISO 22000 certification for food safety management 

systems for the Rishra and Puducherry plants 

Implemented three Six Sigma projects on quality 

improvements 

Conducted extensive research on customer requirements 

to obtain data on quality, packaging, light weighting, 

bottling speed and pressure, capping facility, etc; around 50 

customer plants were visited to provide superior quality and 

customisation. 

Formed a six-member team for pre-dispatch inspection (PDI) 

ensuing packaging inspection and proper loading. 

Road ahead 

Commence more Six Sigma projects for further quality 

enhancements 

Automate quality inspection for quality excellence 

Start ‘clean room production’ for pharmaceutical bottles, 

complying with US-FDA norms 


Marketing and distribution 

At HNG, dependability is derived from an ability to demonstrate 

container glass packaging options that are superior than 

competing companies and packaging alternatives on 

the one hand as well as making timely product deliveries 

on the other, leading to customer delight. This ability is derived 

from an ongoing quest for R&D-driven excellence and plant 

positions in customer-proximate locations - a holistic delivered 

solution. 


Enhanced net value of revenue from customers 

Enhanced quality designs, service and value-for-money, driving 

overall sales volume by 10 percent 

Accelerated bottle light-weighting, reducing material and 

logistic costs 

Customised products and widened the product mix, 

strengthening the customer experience 

Successfully addressed the design challenge for the 

sophisticated ‘Gorbatschow’ liquor bottle 

Added several brand-enhancing clients like Carlsberg and John 

Distilleries, among others, to its formidable customer list. 

Enhanced its global footprint through a deeper presence in 

Europe, Asia and America 

Road ahead 

Proposed market share expansion through product 

development, bottle light-weighting and enhanced NNPB 

product proportion in the corporate portfolio 

Increased export share through an entry into new geographies 

as well as a consolidation in the existing ones 

Proposed increase in installed capacity by around 14 percent 

to service growing market and consumer needs 


Safety, health and environment 

At HNG, manufacturing process involves several operations 

which can adversely impact employee safety, employee health 

and the surrounding environment, warranting investments in 

safety equipment, processes, practices and people. The 

Company deputed a professionally qualified safety, health and 

environment officer in each of its manufacturing facilities. 


Conducted monthly training programmes on safety aspects 

Commenced the water re-cycle plant in which effluent water is 

chemically treated for gardening, cullet washing and other jobs. 

Implemented several effluent control devices to reduce water 

pollution 

Enhanced the number of fire extinguishers in the factories 

Conducted first-aid training programmes by St. John 

Ambulance at the Rishra plant 


Introduced repellents for enhanced hygiene 

Conducted yoga classes for employees and their families 

Road ahead 

Become a zero discharge company 

Enhance focus on air pollution control by the implementation 

of modern devices 

Focus on better housekeeping 


Information technology platform 

At HNG, robust IT infrastructure facilitates time-critical and 

proactive decision-making. HNG undertook the following 

initiatives to remove its IT infrastructure bottlenecks: 


Implemented SAP in Rishra, Bahadurgarh, Puducherry and 

Nashik plants, involving a Rs. 15-crore investment; the platform 

encompassed financial management, material management, 

production planning, plant maintenance and quality 

management to enhance organisational integration and 

performance 

Set up the SAP central site at the Bahadurgarh plant and a 

disaster recovery site at the Rishra plant 

Improved the speed of network devices – from 10/100 mbps 

to 1,000 mbps – at the Bahadurgarh plant for accelerated 

communication 

Road ahead 

Introduce human resource management under the SAP 

platform 

Bring the Neemrana and Rishikesh plant under the SAP 

platform 

Improve network devices for all plants 

Introduce window deployment services (WDS) in all plants for 

faster IT operations 


Talent management 

At HNG, the most enduring capital is the sum of our people 

qualifications, experience and enthusiasm, reflected in a rich 

tradition of innovation, re-engineering, productivity and people 

retention. 


Possessed a 2,997-member team on direct pay roll and around 

3,582 contracted employees (as on March 31, 2009) 

Added 400 members in 2008-09 to service its growing 

capacity and customer requirements 

Maintained a prudent mix of vigour and experience 

Sustained employee retention and attendance at rates higher 

than industry standards 

Strengthened its training based on departmental assessments, 

imparted by in-house experts and also external faculty. 

Strengthened its performance appraisal framework (employee 

rating from 1 to 100 across parameters) linking performance 

with incentives. 

Road ahead 

Proposed recruitment of about 60 engineers and management 

trainees from premier Indian institutions like the National 

Institute of Technology (NIT), Jadavpur University, Bengal 

Engineering College, Roorkee University, Delhi Engineering 

College, the Institute of Chartered Accountants of India and 

Indian Institute of Management followed by a month’s 

induction training 

Proposed annual appraisal by departmental heads based on 

KRAs communicated at the year-start 

Proposed introduction of a performance-linked incentive 

scheme for senior employees 


Managing uncertainties at HNG 

Risk is the uncertainty about events and their possible outcome that can impact performance and prospects. At HNG, our objective 

is to reinforce a culture of responsible risk management at all levels and functions so that risks can be estimated, controlled and 

countered. 

Nature of risk Risk explanation Risk mitigation 

Economy risk Slowdown in key downstream sectors The Company caters to multiple sectors (processed food, 

could affect demand for the Company’s beverages, beer, liquor, pharmaceuticals and organised retail) 

products 

leading to a diversified income portfolio. 

The Company caters to the top 10 companies in respective 

sectors, outperforming the industry average 

The container glass industry grew 12 percent from Rs. 4,000 

cr in 2007-08 to around Rs. 4,500 cr in 2008-09 and this 

growth is expected to sustain 

Competition risk Growing competition (organised and The Company retained its position as India’s largest container 

unorganised players) could affect growth glass player with a market share in excess of 65 percent market 

Accelerated bottle light weighting to benefit consumers 

Widened the product portfolio to address a broader 

client base 

Profitability risk Profitability could be affected on The Company improved its average realisations from 

account of declining realisations, Rs. 14,678 per tonne in 2007-08 to Rs. 17,127 per tonne 

product stagnation or cost increase in 2008-09 

Reinforced its culture of product value-addition 

Retained its industry cost leadership 

Input risk A disruption in quality raw material The Company intends to extend raw material supply contracts 

availability at the right price may 

affect the Company’s competitive edge 

from three months to a year 

Propose to have reasonable inventory for all critical raw 

material depending on lead time. 

Propose reduction in freight cost by having exclusive 

agreements with transporters for movement of raw material. 

Strengthening raw material sourcing by widening the vendor 

base 

Plans to acquire silica mines in the vicinity of its six 

manufacturing units 

Operation risk Operational inefficiencies could increase The Company reinforced its pioneering industry status 

the Company’s cost 

through the bottle light-weighting technology 

Implemented the in-plant narrow-neck-press-and-blow 

technology to catalyse light weighting by up to 25-30 percent 

Implemented vacuum pumps in production lines, enhanced 

productivity, improved quality and reduced energy 

consumption 

Introduced Japanese technology in reducing job change and 

stabilisation time leading to enhanced capacity utilisation 


Nature of risk Risk explanation Risk mitigation 

Quality risk Inconsistent product quality can lead to The Company possesses ISO 9000:2000 quality certification 

client attrition 

and is actively pursuing ISO 14000/18000/22000 certifications 

Invested in sophisticated laboratories equipped with cuttingedge 

equipment (atomic absorption spectrophotometer, flame 

photometer, ramp pressure tester, vertical load tester, profile 

projector, impact tester and automatic thermal shock tester) 

Stringent monitoring reduced rejections 

Marketing risk The Company may find it difficult to The Company enjoys a decades-rich relationship with its 

capitalise on emerging opportunities clients 

due to weak marketing 

Enjoys a 26-nation presence to be increased further in the 

financial year 2009-10 

Deepened its global footprint in Europe, Asia and America. 

Liquidity risk A liquidity crunch could hamper Reduced debtors’ cycle 

operations 

Strengthened creditors’ period optimising working capital use 

Sustained the working capital cycle 

People risk A lack of skilled professionals could The Company is continuously recruiting new professionals to 

affect growth 

drive its growth 

Strengthened training at all levels 

Enhanced employee retention to more than 95 percent 

Funding risk An inability to mobilise adequate The Company enjoyed a 0.36 debt-equity ratio, considered 

low-cost funds may stagger growth 

adequate to fund prospective expansions 

Maintained a Rs. 917.71 cr reserve as on March 31, 2009; 

free reserves constituted 87.33 percent of the reserves and 

surplus balance as on March 31, 2009 

Enjoyed a prudent mix of secured and unsecured loans 


THE DIRECTORS PRESENT THE 

COMPANY’S REPORT ON 

CORPORATE 

GOVERNANCE 

1. Company’s philosophy on Code of Governance 

We at HNG believe good Corporate Governance is a pre-requisite 

for meeting the needs and aspirations of its shareholders and 

other stakeholders in the Company and firmly believe that the 

same could be achieved by maintaining a system and process 

from which emerges the cornerstones of Company’s governance 

philosophy, namely trusteeship, transparency, empowerment 

and accountability, control and ethical corporate citizenship. The 

practice of each of these creates the right corporate culture that 

fulfils the true purpose of Corporate Governance. 

During the financial year 2008-09, the Company has kept its 

commitment towards the required norms and disclosures on 

Corporate Governance under the Listing Agreement executed 

with the stock exchanges, in which the shares of the Company 

are listed. 

2. Board of Directors 

The Company has formed an active, well-informed Board with 

the majority comprising Independent Directors to uphold the 

Company’s commitment to high standards of ethical values and 

business integrity. 

Present composition and size of the Board- 

The composition of the Board of Directors as on March 31, 2009 

is given below. Out of the total 10 Directors on the Board: 

3 are Executive Directors 

1 is a Non-Executive Director 

6 are Non-Executive Independent Directors 

The Chairman of the Company is a Non-Executive, Non- 

Independent Director. The number of Independent Directors 

exceeds one-half of the total number of Directors. 

Attendance of Directors at the previous Annual General 

Meeting (AGM)- 

The last Annual General Meeting was held on September 8, 

2008 at Rotary Sadan, 94/2, Chowringhee Road, Kolkata 700 

020 and the same was attended by all the Directors except 

Mr. S.K. Bangur and Dr. I.K. Saha. 

Attendance of Directors at the Board meeting and number of 

other directorships and other Board committee memberships, 

etc. during the year under review- 

Name of the Director Category of No of Board Directorship in other #No. of committees (Other than that 

directorship meeting(s) companies of the Company) in which he is 

attended incorporated in India^ 

Chairman Member Total 

Mr. C. K. Somany (Chairman) 5 9 – 1 1 

Non-Executive 

Mr. Sanjay Somany (Managing Director) 5 9 – – – 

Executive 

Mr. Mukul Somany (Jt. Managing 5 10 – – – 

Director) Executive 

Mr. Kishore Bhimani Independent 4 1 – 1 1 


Name of the Director Category of No of Board Directorship in other #No. of committees (Other than that 

directorship meeting(s) companies of the Company) in which he is 

attended incorporated in India^ 

Chairman Member Total 

Mr. S. Bhattacharya Independent 5 1 – – – 

Mr. R. K. Daga Independent 5 2 2 – 2 

Mr. Dipankar Chatterji Independent 4 7 – 5 5 

Mr. S.K. Bangur Independent 3 10 – – – 

Dr. I.K. Saha Independent 5 1 – – – 

Mr. R. R. Soni Executive Director 2 1 – – – 

^excludes directorship of companies formed u/s 25 of the Companies Act, 1956, private limited companies and foreign 

companies. 

# Membership/Chairmanship of Audit committees and Shareholders’/Investors’ Grievance committees have been considered. 

Board meetings held during the year- 

During the financial year ended on March 31, 2009, five Board meetings were held within the maximum specified duration of 120 

days between two Board meetings. The details of the meetings are as follows:- 

Sl. no. Date of meeting During the quarter Duration between last Board Meeting 

01 May 16, 2008 April’08 – June’08 114 days 

02 June 25, 2008 April’08 – June’08 39 days 

03 July 25, 2008 July’08 – September’08 29 days 

04 October 27, 2008 October’08 – December’08 93 days 

05 January 27, 2009 January’09 – March’09 91 days 

The Board meetings are normally convened on the directions 

received from the Chairman/Managing Director of the Company. 

A detailed agenda is circulated to the members of the Board, at 

least three days prior to the date of the meeting. Agenda items 

are circulated along with relevant information to enable the 

Board members to take appropriate decisions. The minutes of 

the Committees of the Board are regularly placed before the 

Board. 

3. Audit Committee 

Terms of reference- 

The Company constituted an Audit Committee in the year 2000. 

The terms of reference of the Audit Committee are as follows:- 

1. Oversight of the Company’s financial reporting process and 

the disclosure of its financial information to ensure that the 

financial statement is correct, sufficient and credible. 

2. Recommending to the Board, the appointment, 

re-appointment and, if required, replacement or removal of the 

Statutory Auditors, Tax Auditors and Internal Auditors of the 

Company and the fixation of audit fees. 

3. Approval of payment to Statutory Auditors for any other 

services rendered by them. 

4. Reviewing, with the management, the annual financial 

statements before submission to the Board for approval, with 

particular reference to: 

a. Matters required to be included in the Directors’ Responsibility 

Statement forming a part of the Board’s Report in terms of 

Section 217(2AA) of the Companies Act, 1956. 

b. Changes, if any, in accounting policies and practices and 

reasons for the same. 


c. Major accounting entries involving estimates based on the 

exercise of judgment by the management. 

d. Significant adjustments made in the financial statements 

arising out of audit findings. 

e. Compliance with listing and other legal requirements relating 

to financial statements. 

f. Disclosure of any related party transactions. 

g. Qualifications in the Auditors’ Report. 

5. Reviewing, with the management, the quarterly financial 

statements before submission to the Board for approval. 

6. Reviewing, with the management, performance of statutory 

and internal auditors and adequacy of the internal control 

systems. 

7. Reviewing the adequacy of internal audit function, if any, 

including the structure of the internal audit department, staffing 

and seniority of the official heading the department, reporting 

structure coverage and frequency of internal audit. 

8. Reviewing with internal auditors any significant findings and 

follow-up there on. 

9. Reviewing the findings of any internal investigations by the 

internal auditors into matters where there is a suspected fraud 

or irregularity or a failure of internal control systems of a material 

nature and reporting the matter to the Board. 

10. Discussion with Statutory Auditors, about the nature and 

scope of Audit as well as post-audit discussion to ascertain any 

area of concern. 

11. To look into the reasons for substantial defaults in the 

payment to the depositors, debenture-holders, shareholders 

(in case of non-payment of declared dividends) and creditors. 

12. Carrying out any other function as mentioned in the terms 

of reference of the Audit Committee. 

Composition, meetings and attendance during the 

year- 

During the financial year ended March 31, 2009, eight meetings 

of the Audit Committee were held and the attendance of each 

member of the Committee is given below: 

Dates of meetings 

May 31, 2008, June 25, 2008, July 25, 2008, August 13, 2008, 

October 26, 2008, December 16, 2008, January 27, 2009, 

February 24, 2009. 

Members of the Audit Committee have the requisite financial 

and management expertise. The Chairman of the Audit 

Committee attended the 62nd Annual General Meeting of the 

Company. 

Total Strength of Audit Committee : Three 

Designation Members Category No. of No. of 

meetings held meetings attended 

Chairman Mr. R. K. Daga Non-Executive, Independent Director 8 8 

Member Mr. Sujit Bhattacharya Non-Executive, Independent Director 8 7 

Member Mr. Dipankar Chatterji Non-Executive, Independent Director 8 8 

4. Remuneration Committee 

Terms of reference- To formulate and determine the Company’s policy regarding remuneration packages for Executive Directors 

including any compensation payments. 

Composition, meetings and attendance during the year- 

Total strength of Remuneration Committee : Three 

Designation Members Category 

Chairman Mr. R.K. Daga Non-Executive, Independent Director 

Member Mr. Kishore Bhimani Non-Executive, Independent Director 

Member Mr. Dipankar Chatterji Non-Executive, Independent Director 


The Remuneration Committee has approved the increase in 

remuneration of the Managing Director and Joint Managing 

Director in terms of the agreement entered by the Company with 

them as agreed by the shareholders of the Company. Further, 

the Remuneration Committee has also approved the 

remuneration payable to the Executive Director. 

Remuneration policy of the Company- 

The remuneration of the Executive Directors are recommended 

by the Remuneration Committee, based on criteria such as 

industry benchmarks, the Company’s performance vis-à-vis the 

industry, responsibilities shouldered, performance/track record, 

macro-economic review, remuneration packages of heads of 

other organisations and approved by the Board of Directors. The 

Company pays remuneration by way of salary, perquisites and 

allowances, incentive remuneration and /or commission to its 

Executive Directors. 

The remuneration by way of commission to the Non-executive 

Directors is decided by the Board of Directors and distributed on 

an equal basis. The members had, at the Annual General 

Meeting held on September 14, 2007, approved the payment of 

remuneration by way of commission every year to the Non- 

Executive Directors of the Company of Rs. 100,000 or 1 percent 

of the net profit for that year (calculated in accordance with the 

Provisions of section 309 (5) of the Companies Act, 1956), 

whichever is less, subject to the approval of Central Government 

as may be required, for the period of 5 years commencing from 

April 1, 2007 and ending on March 31, 2012. The commission 

for the financial year 2008-09 will be distributed among the said 

Directors accordingly. 

Details of the remuneration paid to the Directors 

during the financial year 2008-09 

To Non-Executive Directors 

In addition to the commission as aforesaid, the Independent and 

Non-Executive Directors are entitled to a sitting fee of Rs. 5,000 

for attending each meeting of the Board and the Audit 

Committee. The members of Remuneration Committee are paid 

a sitting fee of Rs. 2500 for attending each committee meeting. 

Further, no remuneration is paid for attending the meeting of 

the Share Transfer & Shareholders’ Grievance Committee and 

Treasury Management Committee. 

The Company obtained shareholders’ approval for the payment 

of commission to Non Executive Directors, on September 14, 

2007, for a period of five years. The amount of commission will 

be apportioned and paid among the Non-Executive Directors on 

the basis of duration of membership on the Board. 

The details of sitting fees paid and commission payable for the 

financial year 2008-09 are as follows: 

(In Rupees) 

Directors Business relationship Sitting fees Commission Total 

with HNGIL 

Mr. C.K. Somany* Promoter 25,000 1,00,000 1,25,000 

Mr. Kishore Bhimani None 22,500 1,00,000 1,22,500 

Mr. S. Bhattacharya None 60,000 1,00,000 1,60,000 

Mr. R.K. Daga None 67,500 1,00,000 1,67,500 

Mr. Dipankar Chatterji None 62,500 1,00,000 1,62,500 

Mr. S.K. Bangur None 15,000 1,00,000 1,15,000 

Late Supriya Gupta None 15,000 1,00,000 1,15,000 

Dr. I.K. Saha None 25,000 1,00,000 1,25,000 

* Mr. C.K. Somany is father of Mr. Sanjay Somany, Managing Director and Mr. Mukul Somany, Joint Managing Director. Other 

Directors are not related to one another. 


To Executive Directors 

The details of remuneration paid to Executive Directors as per agreement during the financial year 2008-09 is as follows: 

(In Rupees) 

Break-up remuneration 

Executive Directors 

Mr. Sanjay Somany * Mr. Mukul Somany* Mr. R. R. Soni 

Business relationship with HNGIL Managing Director, Jt. Managing Director, Executive Director 

Promoter’s family 

Promoters’ family 

Salary 63,48,000 63,48,000 8,25,806 

Provident Fund 7,61,760 7,55,268 96,305 

Perquisites 43,618 3,22,266 4,75,514 

Commission 63,48,000 63,48,000 4,12,903 

Total 1,35,01,378 1,37,73,534 18,10,528 

* Mr. Sanjay Somany, Managing Director and Mr. Mukul Somany, Joint Managing Director, who are brothers are related 

to Mr. C.K. Somany, Chairman of the Company. 

Notes: 

a. The agreements with the Executive Directors is for a period of five years for Mr. Sanjay Somany and Mr. Mukul Somany w.e.f. 

October 1, 2005 up to September 30, 2010 and for a period of three years for Mr. R. R. Soni w.e.f. October 27, 2008 up to October 

26, 2011; or the normal retirement date, whichever is earlier. Either party to the agreement is entitled to terminate it by giving not 

less than three months' notice in writing to the other party. 

b. Mr. Sanjay Somany and Mr. Mukul Somany are entitled to a commission of 1% of the net profits subject to a ceiling of their annual 

salary. Mr. R. R. Soni is entitled to a commission of 0.5% of the net profits subject to a ceiling of 50% of his annual salary. 

c. No stock options is available with the Executive Directors or the employees of the Company. 

5. Share Transfer and Shareholders’ Grievance Committee 

Composition, meetings and attendance during the year 

Total strength of the Committee : Four 

Designation Members Category No. of No. of 

meetings held meetings attended 

Chairman Mr. Kishore Bhimani Non-Executive 4 4 

Independent Director 

Member Mr. R.K. Daga Non-Executive 4 4 

Independent Director 

Member Mr. Sanjay Somany Executive Director 4 4 

Member Mr. Mukul Somany Executive Director 4 4 

The dates on which the meetings of the Share Transfer and Shareholders' Grievance Committee were held during the year: 

Date of meetings 

June 25 , 2008 July 25, 2008 October 27, 2008 January 27, 2009 

The Compliance Officer of the Company is Mr. Priya Ranjan who is also the Company Secretary of the Company. 


Shareholders’ complaints and pending share transfer 

There were three investor grievance complaints received during the year under review. All the three complaints were resolved and 

there are no complaints pending at year ended March 31, 2009. 

6. General Body Meetings 

The details of day, date, venue and time of the last three Annual General Meetings held are as follows: 

General Meeting Venue Day and date Time 

62nd Annual General Meeting Rotary Sadan, 94/2, Chowringhee Monday, September 8, 2008 10.00 A.M. 

Road, Kolkata- 700 020 

61st Annual General Meeting Registered Office: Friday, September 14, 2007 11.30 A.M. 

2, Red Cross Place, Kolkata- 700 001 

60th Annual General Meeting Registered Office: Monday, September 25, 2006 11.30 A.M. 

2, Red Cross Place, Kolkata- 700 001 

Details regarding Special Resolutions passed during the previous three years are given below: 

Shareholders’ meeting 

62nd Annual General Meeting 

Special Business requiring Special Resolution 

1. Resolution requiring approval u/s 31 of the Companies Act, 1956 for altering the Article 

85 of the Articles of Association of the Company in respect to the number of Directors 

of the Company. 

2. Resolution requiring approval u/s 314 of the Companies Act, 1956 for holding an office of 

profit by the Chairman of the Company in Glass Equipment (India) Limited, a 100% 

Subsidiary of the Company. 

3. Resolution requiring approval u/s 293(1)(d) of the Companies Act, 1956 and all other 

enabling provisions, to grant consent to the Board of Directors of the Company to borrow 

sums of money, which may exceed the aggregate for the time being of the paid up capital 

of the Company and its free reserves. 

4. Resolution requiring approval u/s 293(1)(a) of the Companies Act, 1956 and other 

applicable provisions to grant consent to the Board of Directors to mortgage, create 

charge(s) and/or hypothecate in addition to the existing mortgage(s), charge(s) and 

hypothecation(s). 

61st Annual General Meeting 

1. Resolution requiring approval for payment of commission to the Non-Executive Directors. 

2. Resolution requiring approval u/s. 314 of the Companies Act, 1956 for Mr. Bharat 

Somany, to hold office or place of profit in the Company. 

60th Annual General Meeting 

None 

However, no resolution requiring a postal ballot u/s 192A 

of the Companies Act, 1956 was recommended for approval 

during the last year. No resolution requiring postal ballot 

is being proposed at the ensuing Annual General Meeting. 

The Company will seek shareholders’ approval through postal 

ballot in respect of resolutions relating to such business 

as prescribed in the Companies (Passing of the Resolutions 

by Postal Ballots) Rules, 2001, as and when the occasion arises. 

7. Disclosures 

There are no materially significant related party transactions 

made by the Company with its Promoters, Directors or the 

Management, its subsidiaries or relatives, etc. that may have 

potential conflict with the interests of the Company at large. The 

Register of Contracts containing the transactions in which the 

Directors are interested is placed before the Board regularly for 

its approval. 


Related Party Transactions in the ordinary course of business 

are reported to the Audit Committee. Such transactions are 

disclosed in Note No. 28 of Schedule ‘S’ to the accounts in the 

Annual Report. 

During the last three years, there were no strictures or penalties 

imposed on the Company by either the Securities and Exchange 

Board of India (SEBI) or the stock exchanges, or any other 

statutory authority for non-compliance of any matter related to 

the capital market. 

Though there is no formal whistle blower policy, the Company 

takes cognizance of the complaints made and suggestions given 

by the employees and others. Even anonymous complaints are 

looked into and whenever necessary, suitable corrective steps 

are taken. No employee of the Company was denied access to 

the Audit Committee of the Board of Directors of the Company. 

The Company conducts periodic reviews and reporting to the 

Board of Directors regarding risk assessment by senior executives 

with a view to minimise risk. 

None of the Non-Executive Directors hold any share in the 

Company except Mr. C. K. Somany (holding 5,35,474 shares in 

his personal capacity). 

During the financial year 2008-09, the Company didn’t make 

any public or rights issue. 

The Financial Statements for the financial year 2008-09 have 

been prepared in accordance with the applicable Accounting 

Standards prescribed by The Institute of Chartered Accountants 

of India and as required under the Companies (Accounting 

Standards) Rules, 2006. 

The Managing Director and the Joint Managing Director of 

the Company have certified to the Board in accordance with 

Clause 49(v) of the Listing Agreement pertaining to CEO/CFO 

certification for the financial year ended March 31, 2009. 

The Management Discussion and Analysis statement forms 

part of this Annual Report. 

According to Articles of Associations of the Company, onethird 

of the Directors retire by rotation and, if eligible, seek reappointed 

at the Annual General Meeting of the shareholders. As 

per Article 90 of the Articles of Association of the Company, Shri. 

Kishore Bhimani, Shri. Sujit Bhattacharya and Shri. S. K. Bangur 

will retire in the ensuing Annual General Meeting. The Board has 

recommended the re-appointment of all the retiring Directors. 

The detailed profiles of all these Directors are provided in the 

Notice calling the Annual General Meeting of the Company. 

8. Means of communication 

The quarterly, half-yearly and annual financial results are 

published in the proforma prescribed under the Listing 

Agreement in one English Newspaper (normally in The Financial 

Express) having wide circulation and another in vernacular 

language in Bengali (normally in Dainik Lipi/Arthik Lipi). 

However, only the annual results are sent to the shareholders of 

the Company. 

The Company’s annual results along with various other 

information are displayed on the Company’s web-site 

www.hngindia.com. 

Pursuant to the requirement of Clause 51 of the Listing 

Agreement, the quarterly financial results, shareholding pattern, 

etc. are provided on the specified web-site of SEBI i.e. 

http://sebiedifar.nic.in. 

9. General shareholder information 

Incorporation 

Corporate Identification Number (CIN): 

AGM: Date, time and venue 

Financial calendar 

1st quarter results by 

2nd quarter results by 

3rd quarter results by 

4th quarter results by 

Date of book closure 

The Company was incorporated in Calcutta in the Province of Bengal on 23rd 

February 1946 (now West Bengal). 

L26109WB1946PLC013294 

August 14, 2009; 11.00 AM at Rotary Sadan, 94/2, Chowringhee Road, 

Kolkata-700 020 

April to March 

4th week of July 

4th Week of October 

4th Week of January 

3rd Week of June of next year 

August 7, 2009 to August 14, 2009 (both days inclusive) 

Dividend Payment Date August 14, 2009 

Listing on stock exchanges 


Your Company’s shares are listed on the following stock exchanges: 

1] The Calcutta Stock Exchange 2] Bombay Stock 3] National Stock Exchange 

Association Ltd Exchange Limited, Mumbai of India Limited 

7, Lyons Range, Kolkata-700 001 25, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla 

Email: mop@cse-india.com Dalal Street, Mumbai 400 001 Complex, Bandra (E), 

Website: www.cse-india.com Email : is@bseindia.com Mumbai- 400 051 

Website: www.bseindia.com 

Email: ignse@nse.co.in 

Website: www.nseindia.com 

Listing fees 

Scrip code/Scrip Symbol – 

Paid for the financial year 2009-10 for all the above Stock Exchanges. 

i. 18003 on The Calcutta Stock Exchange Association Ltd., Kolkata 

ii. 515145 on Bombay Stock Exchange Limited, Mumbai 

iii. HINDNATGLS on National Stock Exchange of India Limited, Mumbai 

High / Low share price data 

1] According to the data provided by The Calcutta Stock Exchange Association Ltd., Kolkata, there has been no transaction of 

the Company’s equity shares during the year under review at the said Stock Exchange. 

2] The details of transactions in the Company’s equity shares at the Bombay Stock Exchange Limited, Mumbai during the 

financial year 2008-09 and the respective higher / lower price data are as given below: 

Month High (Rs.) Low (Rs.) Volume (Shares) 

April, 2008 784.70 745.85 33,693 

May, 2008 794.20 656.70 27,982 

June, 2008 738.65 560.20 28,316 

July, 2008 685.55 571.50 32,631 

August, 2008 658.75 578.90 22,727 

September, 2008 596.60 431.25 17,580 

October, 2008 448.70 249.90 17,611 

November, 2008 413.55 302.20 14,489 

December, 2008 651.65 387.05 32,028 

January, 2009 591.85 515.10 13,607 

February, 2009 549.70 464.25 9,990 

March, 2009 478.00 415.00 8,616 

Source: www.bseindia.com 

3] The Equity Shares of the Company were listed and admitted for dealing on the National Stock Exchange Limited w.e.f April 

15, 2009. 

Performance in comparison to broad-based indices such as BSE Sensex 

Monthly High & Low at Bombay Stock Exchange (HNG vs. Sensex) 


Registrar & Share Transfer Agent 

Share transfer system 

In compliance with the SEBI directive, the Company has appointed M/s. 

Maheshwari Datamatics Pvt. Ltd., as its Registrar & Share Transfer Agent for all 

matters relating to shares both in physical as well as in dematerialised mode. 

However, documents relating to shares are also received at the Company’s 

Registered Office at 2, Red Cross Place, Kolkata 700 001, Tel. No: (033) 2254 

3100, Fax No: (033) 2254 3130, e-mail address: cosec@hngil.com. 

The transfer of shares in physical form is processed and completed by 

M/s Maheshwari Datamatics Pvt. Ltd. within a period of fifteen days from the date 

of receipt thereof, provided all the documents are in order. In case of shares in 

electronic form, the transfers are processed by the NSDL/CDSL through respective 

depository participants. 

Distribution of Share Holding and Share Holding Pattern as on March 31, 2009 

No. of equity shares held Folios % Shares % 

1 to 5000 6411 98.39 2,13,547 1.22 

5001 to 10000 47 0.72 36,079 0.21 

10001 to 20000 16 0.2455 23,357 0.13 

20001 to 30000 3 0.0460 7,400 0.04 

30001 to 40000 3 0.0460 10,807 0.06 

40001 to 50000 2 0.0307 8,482 0.05 

50001 to 100000 2 0.0307 13,382 0.08 

100000 and above 32 0.4911 1,71,54,659 98.21 

Grand total 6,516 100.00 1,74,67,713 100.00 

No. of shareholders in: 

Physical mode 51 0.78 69,97,470 40.06 

Electronic mode 

NSDL 3,864 59.30 1,02,91,614 58.92 

CDSL 2,601 39.92 1,78,629 1.02 

Total 6,516 100.00 1,74,67,713 100.00 

Shareholding pattern as on March 31, 2009 

Category No. of shares % 

Promoters and associates 1,29,54,068 74.16 

Institutions 3,24,262 1.86 

Domestic companies 4,23,425 2.42 

Resident individuals 37,64,572 21.55 

Foreign residents and NRIs 1,385 .01 

Trust 1 

Total 1,74,67,713 100 

Dividend – The Board has recommended dividend @ 50% or Rs. 5 per equity share 


Dematerialisation of shares and liquidity 

As on March 31, 2009, 1,04,70,243 shares comprising 59.94% of the paid-up capital of the Company are in dematerialised 

mode, as compared to 40,45,962 shares as on March 31, 2008. C. K. Somany Group i.e. the promoter of the Company, holds 

around 74.16% of the paid-up capital of the Company, of which 59,61,426 shares being 34.13% of paid-up capital are held in 

dematerialised mode as on March 31, 2009, as compared to 30,47,401 shares being 27.49% of paid-up capital as on March 

31, 2008 and the balance in the physical form at the end of the year March 31, 2009. 

Demat ISIN Number for NSDL and CDSL 

Outstanding GDRSs/ADRs/ Warrants or any convertible 

instruments, conversion date and the likely impact on equity. 

Plant locations 

INE 952A01014 

None 

The Company has six plants, located at: 

I. 2, Panchu Gopal Bhaduri Sarani, II. Bahadurgarh–124507, Dist: Jhajjar, Haryana. 

Rishra-712 248, Dist. Hooghly, West Bengal Phone: (01276) 221400, Fax (01276) 221666 

Phone: (033) 2600 0200, Fax (033) 2600 0333 

III. 14, RIICO Industrial Area IV. P.O. Virbhadra, Rishikesh - 249201, 

Neemrana, Distt. Alwar, Pin - 301705 (Rajasthan) 

Dist. Dehradun, Uttarakhand 

Tel - 01494 - 246712, 513935 Phone: (0135) 2470700, Fax (0135) 2470777 

Fax - 01494 - 246713 

V. Thondamanatham Village, VI. Nashik Glass Work, F1, MIDC Malegaon, 

Vezhudavoor S.O. Pondicherry –605 502 Dist. Sinnar, Nashik - 422113 

Phone: (0413) 2677319, Fax (0413) 2677366/2677666 Phone: (025511) 228900, Fax (025511) 228999 

Address for correspondence 

E-mail ID for investors’ grievance 


Hindusthan National Glass & Industries Ltd. 

2, Red Cross Place, Kolkata 700 001. 

Telephone No. (033) 2254 3100, 

Fax No. 033 2254 3130 

Email: cosec@hngil.com 

cosec@hngil.com 

B. Non-mandatory requirements under Clause 49 of the Listing Agreement 

The Board 

Treasury Management Committee 

Remuneration Committee 

At present, the Chairman of the Company Mr. C. K. Somany, does not have a 

separate office in the Company. The corporate office supports the Chairman in 

discharging his responsibilities. 

Independent Directors are appointed on the Board based on their requisite 

qualifications and experiences which enables them to contribute effectively to the 

Company. 

The Board of Directors at its meeting held on May 9, 2005, have constituted a 

Committee of its member known as the Treasury Management Committee to approve 

and authorise transactions involving the day-to-day management of the funds with 

more efficiency. The Committee comprises Mr. Sanjay Somany, Mr. Mukul Somany, 

Mr. R.K. Daga and Mr. Dipankar Chatterji as its members. During the financial year 

2008-09, 37 meetings of the Treasury Management Committee were held. 

The details of the Committee have already been stated at point no 4 of this report. 


Information to shareholders 

Code of conduct for prevention 

of insider trading. 

Code of Conduct for Directors 

Half-yearly results including summary of the significant events are currently not being 

sent to the shareholders of the Company. However, quarterly results are posted at 

the Company’s website, in addition to being published in two newspapers, one in 

English and another in vernacular language. 

Pursuant to the requirements of SEBI (Prohibition of Insider Trading) Regulations, 

1992, as amended, the Company has adopted a ‘Code of Conduct for Insider 

Trading’ at the meeting of the Board of Directors held on June 10, 2002. The 

Company, its Directors and designated employees, have complied with the provisions 

of the said Code of Insider Trading. 

Pursuant to the requirements of Clause 49 of the Listing Agreement as amended, the 

Company has adopted a ‘Code of Conduct for Directors and the Senior Management’ 

at the meeting of the Board of Directors held on October 31, 2005. The said code 

is also placed on the website of the Company viz. www.hngindia.com. The Directors 

and designated employees of the Company have complied with the provisions of 

the said Code of Conduct. 


Kolkata 

June 20, 2009 

C.K. Somany 

Chairman 

Declaration 

All the Board Members and the senior management personnel have affirmed their compliance with the ‘Code of Conduct for 

Members of the Board and Senior Management’ for the financial year 2008-09 in terms of Clause 49(I)(D)(ii) of the Listing Agreement 

with the Stock Exchanges. 

Mukul Somany 

Sanjay Somany 

Date: June 20, 2009 Joint Managing Director Managing Director 

Certificate 

The Members of Hindusthan National Glass & Industries Limited. 

We have examined the compliance of the conditions of 

Corporate Governance by Hindusthan National Glass & 

Industries Ltd. for the financial year ended March 31, 2009 as 

stipulated in Clause 49 of the Listing Agreement of the said 

Company with stock exchanges in India. 

The compliance of conditions of Corporate Governance is the 

responsibility of the management. Our examination was carried 

out in accordance with the guidance note on certification of 

Corporate Governance (as stipulated in Clause 49 of the Listing 

Agreement) issued by The Institute of Chartered Accountants of 

India, and limited to the procedures and implementation 

thereof, adopted by the Company for ensuring the compliance 

of the conditions of Corporate Governance. It is neither an audit 

nor an expression of the opinion on the financial statements of 

the Company. 

In our opinion and to the best of information and explanations 

given to us and the representations made by the Directors and 

the management, we certify that the Company has complied in 

all material aspects with the conditions of Corporate Governance 

as stipulated in the above-mentioned Listing Agreement. 

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. 

Kolkata 

June 20, 2009 

For Lodha and Co. 

(Chartered Accountants) 

(H.K. Verma) 

Partner 



To the Members 

We have audited the attached Balance Sheet of HINDUSTHAN 

NATIONAL GLASS & INDUSTRIES LIMITED as at March 31, 2009 

and also the Profit and Loss Account and the Cash Flow Statement 

for the year ended on that date, annexed thereto. These financial 

statements are the responsibility of the Company’s management. 

Our responsibility is to express an opinion on these financial 

statements based on our audit. 

We conducted our audit in accordance with auditing standards 

generally accepted in India. Those standards require that we plan 

and perform the audit to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. 

An audit includes, examining on a test basis, evidence supporting 

the 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. 

transit has been physically verified by the management 

at regular intervals during the year. In our opinion and 

according to the information and explanations given to 

us, the frequency of verification is reasonable. 

b) In our opinion, the procedure for the physical 

verification of the inventory followed by the 

management is reasonable and adequate in relation to 

the size of the Company and the nature of its business. 

c) The Company is maintaining proper records of 

inventory. As explained to us, discrepancies noticed on 

physical verification of inventory were not material. 

iii) a) The Company has not granted any loans, secured or 

unsecured, to companies covered in the register 

maintained under section 301 of the Act. Therefore the 

provisions of clause 4(iii) (a) to (d) are not applicable to 

the Company. 

1. As required by the Companies (Auditor’s Report) Order, 2003, 

as amended by the Companies (Auditors Report) (Amendment) 

Order, 2004 issued by the Central Government of India in terms 

of Section 227(4A) of the Companies Act, 1956 and on the basis 

of such checks as we considered appropriate and according to 

the information and explanations given to us, we further report 

that: 

i) a) The Company has maintained proper records showing 

full particulars including quantitative details and 

situation of fixed assets. 

b) All the assets have not been physically verified by the 

management during the year but there is regular 

programme of verification, which, in our opinion, is 

reasonable having regard to the size of the Company 

and the nature of its assets. There were no material 

discrepancies with regard to book records in respect of 

the assets verified during the year. 

iv) 

b) The Company had not taken any unsecured loan from 

companies covered in the register maintained under 

section 301 of the Companies Act, 1956. The total 

number of parties is zero and the maximum amount 

involved during the year was Rs Nil and at the year-end 

there was no outstanding balance of loan. Therefore the 

provisions of clause 4(iii) (e) to (g) are not applicable to 

the Company. 

In our opinion and according to the information and 

explanations given to us, having regard to the explanations 

that some of the items are of special nature for which 

alternative quotations are not available, there are adequate 

internal control procedures commensurate with the size of 

the Company and nature of its business with regard to the 

purchase of inventory, 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. 

c) During the year, the Company has not disposed off a 

substantial part of its fixed assets. 

ii) a) The inventory except stock lying with third parties and in 

v) a) To the best of our knowledge and belief and according 

to the information and explanations given to us, we are 

of the opinion that the transactions that need to be 

entered into the register maintained under section 301 


of the Companies Act, 1956 have been so entered. 

b) In our opinion, having regard to the remarks as given in 

para (iv) above, the transactions made in pursuance of 

contracts or arrangements entered in the register 

maintained under Section 301 of the Companies Act, 

1956, and aggregating during the year to five lacs or 

more in respect of each party have been at prices which 

are considered reasonable having regard to prevailing 

market price for such goods and materials. 

vi) The Company has not accepted any deposits from the public 

during the year. 

vii) In our opinion, the Company has an adequate internal audit 

system commensurate with its size and nature of its 

business. 

viii) The Central Government has not prescribed for the 

maintenance of cost records under Section 209(1)(d) of the 

Companies Act, 1956 in respect of any of the Company’s 

product. 

ix) a) The Company is generally regular in depositing 

undisputed statutory dues including Provident Fund, 

Investor Education and Protection Fund, Employees’ 

State Insurance (except in case of Neemrana unit where 

Provident Fund, and Employees’ State Insurance were 

deposited after receipt of PF code/No.) Wealth Tax, 

Service Tax, Income Tax, Sales Tax, Custom duty, Excise 

duty, Cess and other material statutory dues with the 

appropriate authorities. 

b) There are no undisputed statutory dues payable for a 

period of more than six months from the date these 

dues became payable as at March 31, 2009. 

c) According to the information and explanations given to 

us, the statutory dues which have not been deposited as 

on March 31, 2009 on account of disputes are as under: 

Name of the Nature of Dues Amount Period to which Forum where dispute 

Statute (Rs in lacs) the amount relates is pending 

(Financial year) 

The Central Excise Excise Duty 588.50 1995-96, 1996-97, 1997-98, Supreme Court 

Act, 1944 2000-01 

4.00 2001-02, 2005-06 High Court 

602.16 1995-96, 1998-99, 1999-2000, CESTAT 

2002-03, 2003-04, 2004-05, 

2005-06, 2006-07 

127.09 2000-01, 2001-02, 2004-05, Commissioner (Appeals) 

2006-07, 2007-08 

13.07 1993-96 Assistant Commissioner 

The Sales tax Sales Tax 58.59 1996-97, 1997-98, 1998-99, T.T. Tribunal, Dehradun 

Act, 1932 1999-00 

6.89 2003-04 J.C. (Appeal), Dehradun 

Maharshtra Value 114.00 2005-06, 2006-07 Maharshtra Sales Tax Tribunal, Mumbai 

Added Tax 

Act, 2002 

Bombay Sales Tax Sales Tax 51.31 1997-98 Commissioner sales Tax, Pune 

Act, 1959 

Haryana General Sales Tax 77.52 2002-03 Assessing Authority (Jhajjar) 

Sales Tax Act 2.60 2005-06 Dy.Excise & Taxation Commissioner, Haryana 

Mines and Minerals 79.85 1993-94 District Collector, Villupuram 

Regulation & 

Development Act 


x) The Company has no accumulated losses at the end of the 

financial year and it has not incurred any cash losses in the 

current or in the immediately preceding financial year. 

xi) According to the information and explanations given to us, 

the Company has not defaulted in repayment of dues to a 

financial institution, bank or debenture holders. 

xii) 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. 

xiii) The Company is not a chit fund or a nidhi mutual benefit 

fund/society. Accordingly, the provisions of clause 4 (xiii) of 

the Companies (Auditor’s Report) Order, 2003, as amended 

by the Companies (Auditors Report) (Amendment) Order, 

2004 are not applicable to the Company. 

xiv) According to the information and explanations given to us, 

the Company is not dealing or trading in shares, securities, 

debentures and other investments. Accordingly, the 

provisions of clause 4 (xiv) of the Companies (Auditor’s 

Report) Order, 2003, as amended by the Companies 

(Auditors Report) (Amendment) Order, 2004 are not 

applicable to the Company. 

xv) In our opinion, the terms and conditions on which the 

Company has given guarantee for loans taken by its 

subsidiary Company from bank are not prima facie 

prejudicial to the interest of the Company. 

xvi) According to the information and explanations given to us, 

the term loans have been applied for the purpose for which 

they were raised. 

xvii) According to the information and explanations given to us 

and on an overall examination of the Balance Sheet of the 

Company, we report that short term fund have not been 

used for long-term investment. 

xviii) During the year, the Company has not made preferential 

allotment of shares to parties and companies covered in the 

register maintained under section 301 of the Act. 

xix) According to the information and explanation given to us, 

the Company has created security in respect of debentures 

issued during the year. 

2. Attention is invited to Note 28 E of Schedule S regarding 

purchase of goods for which central Government approval as 

required in terms of provisions of Companies Act, 1956 has not 

been obtained by the Company. 

3. Further to above, we report that 

i) We have obtained all the information and explanations, 

which to the best of our knowledge and belief were 

necessary for the purpose of our audit. 

ii) The Balance Sheet, Profit and Loss Account and Cash Flow 

Statement dealt with by this report are in agreement with 

the books of account. 

iii) In our opinion, proper books of account as required by law 

have been kept by the Company so far as appears from our 

examination of these books. 

iv) In our opinion, the Balance Sheet, Profit and Loss Account 

and Cash Flow Statement dealt with by this report comply 

with the Accounting Standards referred to in Section 211(3C) 

of the Companies Act, 1956 to the extent applicable. 

v) On the basis of the written representations from the 

Directors and taken on record by the Board of Directors, 

none of the Directors is disqualified as on March 31, 2009 

from being appointed as a Director under Section 274(1)(g) 

of the Companies Act, 1956. 

vi) In our opinion and to the best of our information and 

according to the explanations given to us, the said accounts 

subject to our remarks as given in para 2 above, together 

with the overall impact, which is not ascertainable and read 

together with other Notes on Accounts of Schedule “S” give 

the information required by the Companies Act, 1956 in the 

manner so required and also give a true and fair view in 

conformity with the accounting principles generally 

accepted in India: 

a) In the case of Balance Sheet, of the state of affairs of 

the Company as at March 31, 2009 and 

b) In the case of Profit and Loss Account of the Company, 

of the profit for the year ended on that date. 

c) In the case of Cash Flow Statement, of the cash flows for 

the year ended on that date. 

xx) 

The Company has not raised any money through a public 

issue during the year. 

For Lodha & Co. 

Chartered Accountants 

xxi) Based upon the audit procedures performed and 

information and explanations given to us, we report that no 

fraud on or by the Company has been noticed or reported 

during the course of our audit. 

H. K. Verma 

Kolkata 

Partner 

June 20, 2009 Membership No: 55104 


Balance Sheet As at March 31, 2009 

(Rs in lacs) 

Schedules As at 31.03.2009 As at 31.03.2008 

SOURCES OF FUNDS 

Shareholders' Funds 

Share Capital A 1746.77 1746.77 

Reserves and Surplus B 91771.26 84612.65 

93518.03 86359.42 

Loan Funds 

Secured Loans C 41523.81 28742.96 

Unsecured Loans D 9210.65 13127.61 

50734.46 41870.57 

Deferred Tax Liabilities (Net) 4176.71 1807.52 

Total 148429.20 130037.51 

APPLICATION OF FUNDS 

Fixed Assets 

E 

Gross Block 137899.43 125746.20 

Less: Depreciation 47251.09 41031.42 

Net Block 90648.34 84714.78 

Capital Work-in-Progress 8203.39 4510.70 

Investments F 10458.46 11458.50 

Current Assets, Loans and Advances 

Inventories G 21578.47 16414.97 

Sundry Debtors H 22718.99 16449.63 

Cash and Bank Balances I 1139.97 1678.98 

Loans and Advances and Other Current Assets J 19353.09 13654.98 

64790.52 48198.56 

Less: 

Current Liabilities and Provisions 

Current Liabilities K 19882.16 14857.67 

Provisions L 5789.35 3987.36 

25671.51 18845.03 

Net Current Assets 39119.01 29353.53 

Total 148429.20 130037.51 

Significant Accounting Policies and Notes on Accounts 

S 

The Schedules referred to above form an integral part of Balance Sheet 

As per our report of even date 

For Lodha & Co. Mukul Somany Sanjay Somany 

Chartered Accountants Jt. Managing Director Managing Director 

H. K. Verma Priya Ranjan Nirmal Khanna 

Partner Company Secretary Sr. Vice President and 

Kolkata 


June 20, 2009 


Profit and Loss Account For the year ended March 31, 2009 

(Rs in lacs) 

Schedules 31.03.2009 31.03.2008 

INCOME 

Sales (Gross) M 143859.63 114833.90 

Less : Excise Duty 12756.04 12704.21 

131103.59 102129.69 

Other Income N 2170.07 1113.96 

Increase / (Decrease) in Stock O 1145.74 (424.86) 

134419.40 102818.79 

EXPENDITURE 

Materials P 39309.11 29251.61 

Manufacturing and Other Expenses Q 71519.14 52100.07 

110828.25 81351.68 

Profit before Depreciation, Interest and Tax 23591.15 21467.11 

Depreciation 7698.07 7293.97 

Transferred From Revaluation Reserve (223.55) (281.21) 

7474.52 7012.76 

Interest and Finance Expenses R 4344.88 2346.87 

11819.40 9359.63 

Profit before Tax 11771.75 12107.48 

Less : Provision for Income Tax 

- Minimum Alternate Tax 1310.00 1367.57 

- Less: MAT Credit Entitlement (355.00) 955.00 (1367.57) – 

- Fringe Benefit Tax 50.00 36.90 

- Deferred Tax – (2663.49) 

- Income Tax for Earlier years (7.87) (1299.82) 

Profit after Tax 10774.62 16033.89 

Add : Balance brought forward from last year 1072.00 705.57 

Amount available for Appropriation 11846.62 16739.46 

APPROPRIATIONS 

General Reserve 7000.00 14850.00 

Debenture Redemption Reserve 1250.00 – 

Proposed Dividend on Equity Shares 873.39 698.71 

Tax (including cess) on Proposed Dividend 148.43 118.75 

Balance carried to the Balance Sheet 2574.80 1072.00 

11846.62 16739.46 

Basic and Diluted Earning Rs per Share 61.68 91.79 

(Refer Note No. 10 of Schedule ‘S’) 

Significant Accounting Policies and Notes on Accounts S 

The Schedules referred to above form an integral part of Profit and Loss Account 






Kolkata 


June 20, 2009 


Cash Flow Statement For the year ended March 31, 2009 

(Rs in lacs) 

2008-09 2007-08 

A. CASH FLOW FROM OPERATING ACTIVITIES 

Net Profit Before Tax and extraordinary items 11771.75 12107.48 

Adjustments to reconcile profit before tax to cash provided by operating activities. 


Bad Debts & Provision for Doubtful debts 205.54 239.25 

Provision for loss in value of current investment 0.04 0.17 

Interest expenses (Net) 4344.88 2346.87 

Dividend income (166.71) (0.27) 

Liability no longer required written back (514.97) (95.92) 

Interest received (497.22) (120.29) 

(Profit) / Loss on sale of Fixed Assets (Net) 133.70 61.45 

(Profit) / Loss on sale of current Investments (Net) (119.10) (8.15) 

Operating Profit before working capital changes 22632.43 21543.35 

Changes in current assets and liabilities 

Loans and advances (181.44) (4974.99) 

Trade and other receivables (6474.90) (4056.07) 

Inventories (5163.50) (441.64) 

Trade and other payables 4125.48 4316.59 

Net Cash Generated by Operating Activities 14938.07 16387.24 

Adjustments for : 

Direct Taxes paid (1349.04) (115.16) 

Fringe Benefit Tax paid (41.33) (36.75) 

Net Cash from Operating Activities 13547.70 16235.33 

B. CASH FLOWS FROM INVESTING ACTIVITIES 

Purchase of Fixed Assets and changes in capital work in progress (16838.18) (13016.03) 

Proceeds on Disposal of Fixed Assets 679.21 161.13 

Purchase of Long Term Investments – (4367.93) 

Sale of Long Term Investments – 42.93 

Purchase of Current Investments – (5794.44) 

Sale of Current Investments 1119.10 5802.59 

Share Application Money (3500.00) – 

Dividend received 166.71 0.27 

Interest received 234.21 34.57 

Net Cash from Investing Activities (18138.95) (17136.91) 

C. CASH FLOW FROM FINANCING ACTIVITIES 

Proceeds / (Repayment) from long term borrowings (Net) 17041.95 812.38 

Proceeds / (Repayment) from short term borrowings (Net) (8178.06) 3116.52 

Interest paid (3994.49) (2331.38) 

Dividend Paid during the year including Corporate Dividend Tax (817.16) – 

Net Cash from Financing Activities 4052.24 1597.52 

Net changes in Cash and Cash equivalents (539.01) 695.94 

Opening Cash and Cash equivalents 1678.98 983.04 

Cash and Cash equivalents at the end of the year 1139.97 1678.98 

(represents cash in hand and bank balances) 

Note: 1) The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting Standard 3 (AS-3) - 

Cash Flow Statements issued by “The Institute of Chartered Accountants of India”. 

2) Previous Year’s figures have been regrouped wherever necessary to conform to the Current Year. 






Kolkata 


June 20, 2009 


Schedules forming part of the Accounts 

(Rs in lacs) 

31.03.2009 31.03.2008 

Schedule – A SHARE CAPITAL 

Authorised 

51,15,00,000 Equity Shares of Rs 10/- each (Previous Year 51,15,00,000 Shares of Rs 10/-each) 51150.00 51150.00 

51150.00 51150.00 

Issued, Subscribed and Paid-Up 

1,74,67,713 (Previous Year 1,10,43,368) Equity shares of Rs 10/- each fully paid up of which 1746.77 1104.34 

58,10,360 Shares of Rs 10/- each were allotted as fully paid up Bonus Shares by 

capitalisation of General Reserve and 64,24,345 Equity Shares of Rs 10/- each issued 

as fully paid up pursuant to a scheme of amalgamation and arrangement for 

consideration other than cash. 

Share Suspense Account (pending allotment pursuant to the scheme of arrangement) – 642.43 

1746.77 1746.77 

31.03.2009 31.03.2008 

Schedule – B RESERVES AND SURPLUS 

General Reserve 

As per last Balance Sheet 59385.25 16500.01 

Add/Less adjustment as referred to in note no 31(a) of Schedule "S" 7000.00 66385.25 42885.24 59385.25 

Revaluation Reserve 


Add/Less adjustment as referred to in note no 31(b) of Schedule "S" 225.02 10376.55 7212.84 10601.57 

Debenture Redemption Reserve 

Add/Less adjustment as referred to in note no 31(c) of Schedule "S" 1250.00 – 

Share Premium 


Add/Less adjustment as referred to in note no 31(d) of Schedule "S" 2369.18 11184.66 12449.54 13553.84 

Profit and Loss Account 

Surplus as per Profit and Loss Account 2574.80 1072.00 

91771.26 84612.65 

Notes 31.03.2009 31.03.2008 

Schedule – C SECURED LOANS 

I) 12.75 % Redeemable Non Convertible Debentures 

Privately placed with Life Insurance Corporation of India Limited 1 and 2 10000.00 – 

II) Rupee term Loans 

From Financial Institution 

- Export Import Bank of India 2 5304.17 6327.78 

From Banks 

- State Bank of India 2 and 3 5996.00 2432.00 

- The Honkong & Shanghai Banking Corporation Limited 4 9437.50 4562.50 

III) Foreign Currency Loans 

From Banks 

- The Honkong & Shanghai Banking Corporation Limited - PCFC – 599.16 

- ICICI Bank Limited - External Commercial Borrowing 2 1929.38 2005.50 

IV) Working Capital Loans From Banks 5 8233.70 12494.80 

V) Loans under Vehicle Finance Scheme 

From Banks 6 449.07 293.05 

From Others 6 136.43 7.13 

VI) Interest accrued and due 37.56 21.04 

41523.81 28742.96 

Notes: 

1) 12.75% Secured Non Convertible Debentures amounting to Rs 100 crores, privately placed (alloted on 22.12.2008) are due for 



redemption at par in three equal installments at the end of 5th, 6th and 7th year from the date of allotment with put/call option at par 

at the end of 3rd year from the date of allotment. 

2) The loans/debentures are secured by first charge ranking pari-passu with other first charges created on all immovable properties by way 

of equitable mortgage and hypothecation of all moveable properties both present and future of Rishra, Bahadurgarh and Neemrana 

Plants, save and except specific assets exclusively hypothecated in favour of respective lenders. 

3) These loans are also collaterally secured by second charge on Current Assets of the said plants. 

4) The loans are secured by first charge ranking pari-passu with other first charges created and/or to be created on all immovable properties 

by way of equitable mortgage and hypothecation of all moveable properties both present and future of Rishikesh, Pondicherry and 

Nashik Plants, save and except specific assets exclusively hypothecated in favour of respective lenders. 

5) This is secured by hypothecation of inventories (both present and future) and book debts and second charge on all immovables, moveable 

properties including land and building in favour of consortium bankers led by State Bank of India. 

6) These are secured by hypothecation of the vehicles financed in favour of respective lenders. 

(Rs in lacs) 

31.03.2009 31.03.2008 

Schedule – D UNSECURED LOANS 

a) Short Term Loans 

From Banks 5000.00 8555.45 

Non Convertible Debentures * 2500.00 3000.00 

From Others – 27.04 

b) Trade Deposits 100.10 100.10 

c) Sales Tax Deferment Loan 1610.55 1445.02 

9210.65 13127.61 

Note: * 

* Represents Mibor linked Non-Convertible Debentures privately placed with LIC Mutual Fund (previous year with JM Mutual Fund) 

Schedule – E FIXED ASSETS 

GROSS BLOCK DEPRECIATION NET BLOCK 

Particulars Book Value at Additions Deductions/ Book Value at Upto For the Deductions/ Upto As on As on 

01.04.2008 Adjustments 31.03.2009 01.04.2008 Year Adjustments 31.03.2009 31.03.2009 31.03.2008 

Land 12222.72 28.03 – 12250.75 – – – – 12250.75 12222.72 

Leasehold Land 2009.07 39.29 – 2048.36 5.60 13.03 – 18.63 2029.73 2003.47 

Buildings 13372.09 335.36 (49.77) 13757.22 2459.09 426.07 – 2885.16 10872.06 10913.00 

Leasehold Building 9.18 – – 9.18 0.18 0.16 – 0.34 8.84 9.00 

Plant and Machinery 96038.73 13122.23 2102.97 107057.99 37753.26 7000.44 1359.38 43394.32 63663.67 58285.47 

Furniture and Fixtures 349.01 40.32 82.79 306.54 149.38 17.63 3.62 163.39 143.15 199.63 

Office and Other 

Equipments 375.47 50.66 11.09 415.04 194.07 41.22 11.10 224.19 190.85 181.40 

Vehicles 1287.34 572.98 145.70 1714.62 436.03 166.73 104.30 498.46 1216.16 851.31 

Computer Software 82.59 257.14 – 339.73 33.81 32.79 – 66.60 273.13 48.78 

Total 125746.20 14446.01 2292.78 137899.43 41031.42 7698.07 1478.40 47251.09 90648.34 84714.78 

Previous Year 106960.85 20659.67 1874.32 125746.20 35328.45 7293.96 1590.99 41031.42 84714.78 



Schedule – F 

INVESTMENTS 

(Rs in lacs) 

Face Value (Rs.) Nos. 31.03.2009 31.03.2008 

A) Long Term 

Trade 

Fully Paid-up Equity Shares 

Unquoted 

Capexil Agencies Ltd. 1000 5 0.05 0.05 

Ceramic Decorators Ltd. 10 7 – - 

Associate 

HNG Float Glass Ltd. 10 42010000 4201.00 4201.00 

Other Than Trade 

Unquoted 

Units of CAN FMP 13M-SRI (Close ended) – 1000.00 


The Calcutta Stock Exchange Association Ltd. 1 8364 167.28 167.28 

Beneficial Interest in Shares held in HNG Trust 7.55 7.55 

Beneficial Interest in Shares held in Ace Trust 6009.35 6009.35 

In Subsidiary Companies 

Glass Equipment (I) Ltd. 100 26400 55.82 55.82 

Quality Minerals Ltd. 100 9384 9.38 9.38 

Government Securities 

Unquoted 

Deposited with Government Authorities * 

a) 12 Years National Savings Certificate 0.01 0.01 

b) 7 Years National Savings Certificate 0.01 0.01 

c) 6 Years National Savings Certificate 6.49 6.49 

B) Current 

Other Than Trade 

Quoted 

Kajaria Ceramics Ltd. 2 5470 1.52 1.56 

Total 10458.46 11458.50 

* Rs 0.42 lacs since matured but not encashed 

Aggregate book value of Unquoted Investments 10456.94 11456.94 

Aggregate book value of Quoted Investments 1.52 1.56 

Aggregate market value of Quoted Investments 1.52 1.56 

Schedule – G INVENTORIES 

(As valued and certified by the Management) 

Raw Materials 4388.25 2615.54 

Stores and Spare parts (Including in transit Rs 238.94 lacs, Previous year Rs 560.02 lacs.) 9257.55 7229.13 

Packing Materials 640.44 423.81 

Stock-in-Process 302.15 409.76 

Finished Goods 6990.08 5736.73 

21578.47 16414.97 

Schedule – H SUNDRY DEBTORS 

(Unsecured, considered good unless otherwise stated) 

Debts due for a period exceeding six months 

Considered good 2733.33 939.30 

Considered doubtful 863.04 991.53 

3596.37 1930.83 

Less: Provision for doubtful debts 863.04 991.53 

2733.33 939.30 

Other Debts 19985.66 15510.33 

22718.99 16449.63 



(Rs in lacs) 

31.03.2009 31.03.2008 

Schedule – I CASH AND BANK BALANCES 

Cash Balance on hand 29.51 29.19 

Cheques in hand 253.89 1078.26 

Balances With Scheduled Banks 

in Current Accounts 834.96 513.85 

in Margin Money Accounts* – 40.03 

in Fixed Deposit Accounts* 21.61 17.65 

*(Receipts pledged with the banks and Government authorities for Rs 21.61 lacs, Previous year Rs 57.18 lacs) 

1139.97 1678.98 

Schedule – J LOANS AND ADVANCES AND OTHER CURRENT ASSETS 

(Unsecured and Considered good) 

Loans 

To Bodies Corporate 3049.50 4724.00 

Advances recoverable in cash or in kind or for value to be received 2366.80 2059.23 

(Net of doubtful advances Rs 238.02 Lacs Previous year Rs 240.65 Lacs) 

Share Application Money 3500.00 – 

VAT Credit (Inputs) Account 593.85 613.24 

Advance Income Tax 4390.01 2866.40 

Tax Deducted at Source 364.10 175.80 

Advance Fringe Benefit Tax 79.41 37.66 

MAT Credit Entitlement 1722.57 1367.57 

Deposits and balances with Government Authorities and Other Departments 2894.55 1581.33 

Other Deposits 15.08 132.37 

18975.87 13557.60 

Other Current Assets 

Interest accrued on Investments 2.35 1.79 

Interest Receivable 352.70 85.35 

Fixed Assets held for disposal (at lower of net book value or estimated net realisable value) 22.17 10.24 

19353.09 13654.98 

Schedule – K CURRENT LIABILITIES 

Sundry Creditors 

Dues to Micro, Small and Medium Enterprises 68.34 55.68 

Others 15546.68 13174.26 

Subsidiary Companies 842.63 715.29 

Interest accrued but not due on Loans 454.64 104.25 

Commission to Directors 139.09 118.40 

Other Liabilities 2830.46 689.77 

Unclaimed dividend * 0.32 0.02 

* This is not due for payment to Investor Education & Protection Fund. 

19882.16 14857.67 

Schedule – L PROVISIONS 

For Taxation 3421.27 2111.27 

For Gratuity and Unavailed Leave 1257.76 1020.55 

For Fringe Benefit Tax 88.50 38.08 

For Proposed Dividend 873.39 698.71 

For Tax on Proposed Dividend 148.43 118.75 

5789.35 3987.36 



(Rs in lacs) 

31.03.2009 31.03.2008 

Schedule – M SALES 


General Merchandise Sale 76.95 163.03 

Others 55.37 708.69 

143859.63 114833.90 

Less: Excise Duty 12756.04 12704.21 

131103.59 102129.69 

Schedule – N OTHER INCOME 

Dividends On Long Term Investments - other than trade 166.71 0.26 

Dividends On Current Investments - other than trade – 0.01 

Interest on 

- Loan 428.47 41.95 

- Deposits 48.60 18.88 

- Investments 0.62 0.07 

- Others 2.21 0.21 

- Tax Refunds 17.32 – 

Rent 39.93 34.38 

Hire charges 17.20 40.54 

Insurance Claims 9.62 1.98 

Miscellaneous Receipts 789.64 475.15 

Liabilities/ provisions no longer required written back 514.97 95.92 

Profit on Assets Sold/Discarded 15.68 15.10 

Profit on sale of Current Investments - other than trade 119.10 8.15 

Income from Derivatives – 71.29 

Foreign Exchange Fluctuation (Net) – 310.07 

2170.07 1113.96 

Schedule – O INCREASE / (DECREASE) IN STOCK 

Closing Stock 


Work-in-Process 302.15 409.76 

7292.23 6146.49 

Less : 

Opening Stock 


Add: Vested pursuant to Scheme of Amalgamation 1648.06 6245.03 


Add: Vested pursuant to Scheme of Amalgamation 53.72 326.32 

6146.49 6571.35 

Increase / (Decrease) 1145.74 (424.86) 

Schedule – P MATERIALS 

Raw Materials Consumed 39252.14 29059.45 

Purchase of Trading Material 56.97 192.16 

39309.11 29251.61 



(Rs in lacs) 

31.03.2009 31.03.2008 

Schedule – Q MANUFACTURING AND OTHER EXPENSES 

Stores and Spare Parts Consumed 7802.50 5767.83 

Power and Fuel 36840.99 27187.58 

Packing Material Consumed and Packing Charges 9123.08 7605.62 

Salaries, Wages and Bonus 5478.70 4270.50 

Contribution to Provident and other Funds 740.82 722.79 

Workmen and Staff Welfare Expenses 370.79 420.24 

Rent 93.43 95.43 

Rates and Taxes 43.21 57.83 

Repair and Maintenance : 

Buildings 186.95 132.87 

Plant and Machinery 927.70 1104.51 

Others 238.18 209.78 

Freight outwards, transport and other selling expenses 1232.83 1003.38 

(Net of Realisation Rs 1214.21 lacs, Previous Year Rs 983.56 lacs) 

Commission on Sales 140.78 116.10 

Insurance 151.95 147.45 

Charity and Donation 40.93 31.00 

Bad Debts/Advances written off 265.23 185.81 

Less: Provision for Doubtful Debts / advances written back 265.16 0.07 195.92 (10.11) 

Provision for Doubtful Debtors/Advances 205.47 249.36 

Excise Duty on Stock (179.91) (28.13) 

Directors' Remuneration 298.85 244.99 

Provision For Loss on Derivative Transaction 1833.05 313.94 

Loss on sale/discard of fixed assets 149.38 76.55 

Provision for Diminution in value of Current Investments 0.04 0.17 

Foreign Exchange Fluctuation (net) 2326.33 – 

Miscellaneous Expenses 3473.02 2380.39 

71519.14 52100.07 

31.03.2009 31.03.2008 

Schedule – R INTEREST AND FINANCE EXPENSES 

On Debentures 429.13 569.50 

On Term Loans 2570.41 1510.40 

Bank and Others 949.60 135.19 

Finance Expenses 395.74 131.78 

4344.88 2346.87 



Schedule – S ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 

1. Significant Accounting Policies 

a. Accounting Convention 

The accounts, except in respect of certain Fixed Assets, which are stated at fair value or revalued amounts, have been prepared on the 

basis of the historical cost and on the accounting principles of a going concern. The accounts have been prepared in accordance with 

the provisions of the Companies Act, 1956 and Accounting Standards as notified vide Companies (Accounting Standards) Rules, 2006. 

b. Use of Estimates 

The preparation of financial statements require management to make estimates and assumption that affect the reported amount 

of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported 

amounts of income and expenses during the year. Difference between the actual results and the estimates are recognised in the year 

in which the results are known /materialised. 

c. Fixed Assets 

Fixed Assets are stated at cost of acquisition or cost of construction or at revalued amounts wherever such assets have been revalued 

or at fair value as the case may be. 

d. Depreciation and Amortisation 

Tangible Assets 

i. Depreciation except otherwise stated has been provided at the rates specified under Schedule XIV to the Companies Act, 1956 

on assets installed/acquired up to March 31, 1990 on written down value method and in respect of additions thereafter on 

straight line method. 

ii. 

Certain Plant and Machinery have been considered as continuous process plant as defined under Schedule XIV to the Companies 

Act, 1956 on the basis of technical evaluation. 

iii. Depreciation on increase in value of Fixed Assets due to revaluation is provided on the basis of remaining useful life as estimated 

by the valuer on the straight line method and is transferred from Revaluation Reserve to Profit and Loss Account. 

iv. Depreciation on incremental cost arising on account of exchange difference is amortised over the remaining life of the assets. 

v. Second hand machines are depreciated based on their useful lives as estimated by independent technical experts. 

Intangible Assets 

vi. Computer Softwares are amortised on straight line method @33.33% over a period of three years. 

e. Impairment 

Fixed Assets are reviewed at each balance sheet date for impairment. In case events and circumstances indicate any impairment, 

recoverable amount of fixed assets is determined. An impairment loss is recognised, whenever the carrying amounts of assets 

belonging to Cash Generating Unit (CGU) exceeds recoverable amount. The recoverable amount is the greater of assets net selling 

price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are discounted to their 

present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable amount and such loss 

either no longer exists or has decreased. Impairment loss/reversal thereof is adjusted to the carrying value of the respective assets, 

which in case of CGU, are allocated to its assets on a prorata basis. 

f. Investments 

Long Term Investments are stated at cost, less provision for diminution in value other than temporary, if any. Current Investments 

are valued at cost or fair value whichever is lower. 

g. Inventories 

Inventories are valued at the lower of cost or estimated net realisable value. In respect of Raw Materials, Stores, Spare Parts, Fuel, 

Building and Packing Materials the cost includes the taxes and duties other than those recoverable from taxing authorities and other 

expenses incurred for procuring the same. In respect of Finished Goods and Work-in-Process the cost includes manufacturing 

expenses and appropriate portion of overheads. The cost of inventories is determined on the weighted average basis. 

Own manufactured moulds used for the manufacture of glass items are recorded at weighted average cost, which includes prime 

cost, factory and general overheads and the same are classified as stores and spare parts under inventories. 

h. Foreign Exchange Transactions and Derivatives 

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency 

monetary assets and liabilities at the year-end are translated using closing exchange rates. The loss or gain thereon and also on the 



Schedule – S ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.) 

exchange differences on settlement of the foreign currency transaction during the year are recognised as income or expenses in the 

Profit and Loss Account. 

Exchange differences arising with respect to forward contracts other than those entered into, to hedge foreign currency risk on 

unexecuted firm commitments or of highly probable forecast transactions are recognised in the period in which they arise and the 

difference between the forwards rate and exchange rate at the date of transaction is recognised as income/expense over the life of 

the contract. 

Keeping in view the announcement of “The Institute of Chartered Accountants of India” dated March 29, 2008 regarding accounting 

for derivatives, mark to market losses on all other derivatives contracts (other than forward contracts dealt as above) outstanding 

as at the year end, are recognised in the accounts. 

i. Revenue Recognition 

i) All Expenses and Incomes are accounted for on mercantile basis except otherwise stated. 

ii) 

Income from Export Incentives, Insurance and other claims etc. is recognised on the basis of certainties as to its utilisation and 

related realisation. 

iii) Sales are inclusive of Packing Charges and Excise Duty but exclusive of Value Added Tax, Rebates, Discounts, and Claims etc. 

j. CENVAT / Value Added Tax (VAT) Credit 

Cenvat / VAT credit whenever availed on Fixed Assets is set off with the cost of the assets. Other Cenvat / VAT credit wherever availed 

is adjusted with the cost of purchases of Raw Material or Stores as the case may be. 

k. Employee Benefits 

Employee Benefits are accrued in the year services are rendered by the employees. The Company has Defined Contribution Plan for its 

employees comprising of Provident Fund and Pension Fund. The Company makes regular contribution to Provident Fund which are 

fully funded and administered by the Trustees / Government. The Company contributes to the Employees’ Pension Scheme, 1995 

for certain categories of employees. Contributions are recognised in the Profit and Loss account on accrual basis. 

Long-term employee benefits under defined benefit scheme such as gratuity, leave encashment etc. are determined at the close of 

each year at the present value of the amount payable using actuarial valuation techniques. 

Actuarial gains and losses are recognised in the year when they arise. 

l. Research and Development 

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account in the year in which it is incurred. 

m. Subsidies and Grants 

Cash Subsidy related to Fixed Assets to the extent received is adjusted to the cost of respective fixed assets. Subsidy related to the 

total investment in the project is treated as Capital Reserve. Other Government grants including incentives etc. are credited to Profit 

and Loss Account or deducted from the related expenses. 

n. Borrowing Cost 

Borrowing costs that are attributable to the acquisition/construction of Fixed Assets are capitalised as part of the cost of respective 

assets. Other borrowing costs are recognised as an expense in the year in which they are incurred. 

o. Income Tax 

Provision for Tax is made for current tax, deferred tax and fringe benefit taxes. Current tax is provided on the taxable income using 

the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference, which are capable 

of reversal in subsequent periods are recognised using tax rates and tax laws, which have been enacted or substantively enacted. 

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future taxable income will be 

available against which such deferred tax assets will be realised. In case of carry forward of unabsorbed depreciation and tax losses, 

deferred tax assets are recognised only if there is “virtual certainty” that such deferred tax assets can be realised against future 

taxable profits. 

p. Lease 

Where the Company is the lessee, finance leases, which effectively transfer to the Company substantially all the risks and benefits 

incidental to ownership of the leased item, are capitalised at the lower of the fair value and present value of the minimum lease 

payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance 




charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. 

Lease management fees, legal charges and other initial direct costs are capitalised. 

Leases rentals in respect of assets taken under finance lease up to March 31, 2001 are amortised over the total term of the lease 

(including extended secondary lease term). 

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as 

operating leases. Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight-line basis over 

the lease term. 

q. Provision, Contingent Liabilities and Contingent Assets 

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result 

of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognised nor disclosed 

in the financial statements. Contingent Liabilities, if material are disclosed by way of notes. 

NOTES ON ACCOUNTS 

(Rs in lacs) 

2008-09 2007-08 

2) Contingent liabilities not provided for 

a) Outstanding Bank Guarantees / Letter of Credit 6410.93 1384.86 

b) Income Tax matter in respect of erstwhile AGCL under dispute Nil 3.41 

c) Sales Tax matter under appeals 216.88 214.25 

d) Excise Duty and Octroi demand issued against which the Company has preferred appeals 

and which in the opinion of the management are not tenable. 1639.10 1703.25 

e) Cases pending with labour courts (to the extent ascertainable) 544.44 549.59 

f) Claim for increased price of land acquired at Bahadurgarh by the then Punjab Government 

and given to the Company against which the claimants have preferred an appeal in the 

Supreme Court against the order of the High Court. 0.30 0.30 

g) Amount of duty against Export Obligation in respect of exemption availed against 

Advance License Scheme. 19.19 4.32 

h) Other Claims against the Company not acknowledged as debt. 105.91 26.10 

i) Counter Guarantee furnished to Government and other authorities on behalf of Glass 

Equipment (India) Ltd. (Subsidiary Company) – 381.00 

Notes : 

On the basis of current status of individual cases and as per the legal advice obtained, 

wherever applicable the management is of the view that no provision is required in respect 

of these cases. Further Cash outflow in respect of item no. b) to h) as mentioned above 

is dependent upon outcome of final judgment/decision. 

3) In respect of Neemrana Plant a notice has been received from Civil Court filed by the Nil Nil 

creditors of Haryana Sheet Glass Limited demanding their outstanding payments and 

stating that plant can not be transferred unless their dues are paid. However, the 

matter is under dispute/litigation. 

4) Capital commitments (Net of advance of Rs 1319.85 lacs previous year Rs 356.46 lacs) 10431.39 1212.88 

5) Capital work in progress includes pre-operative expenses pending allocation. 

a) Salary and Wages Nil 23.99 

b) Power and Fuel 11.24 23.02 

c) Miscellaneous expenses 150.80 31.21 

d) Interest on Term Loan 180.16 239.25 

Add: Brought Forward from previous year 413.97 163.97 

Less: Capitalised 756.17 67.47 

Total Carried Forward Nil 413.97 

Capital work in progress includes Rs 714.75 Lacs on account of advances and 

Rs 5804.27 lacs on account of equipments/materials procured. 



Schedule – S 

ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.) 

6) Fixed Assets at Nashik Plant are estimated to have lower residual lives than that envisaged as per the rates provided in Schedule XIV of 

the Companies Act, 1956. Depreciation has been provided based on the estimated shorter residual lives as follows: 

Particulars of Fixed Assets Rates as Rates of 

prescribed by Depreciation on 

Schedule XIV to assets applied 

the Companies 

Act, 1956 

Buildings (other than factory buildings) 1.63 2.04 

Factory Buildings 3.34 5.21 

Plant and Machinery 

Used for single shift operations 4.75 11.44 

Continuous Process Plant 5.28 11.44 

Used for Triple Shift operations 10.34 11.44 

Furniture & Fixtures 6.33 17.37 

Computers 16.21 17.95 

(Rs in lacs) 

2008-09 2007-08 

7) i) Land and Buildings of Rishra and Bahadurgarh units were revalued by an approved 10891.99 10891.99 

valuer on April 1, 1992 and on March 31, 2006 on current replacement cost basis. 

Accordingly, net amount transferred to Revaluation Reserve Account. 

ii) Plant and Machinery of Rishra and Bahadurgarh units were revalued by an approved 4831.31 4831.31 

valuer, on April 1, 1995 on current replacement cost basis. Accordingly, net amount 

transferred to Revaluation Reserve Account. 

iii) Depreciation transferred from Revaluation Reserve Account to Profit and Loss Account. 223.55 281.21 

8) Miscellaneous Expenses include 

2008-09 2007-08 

a) Payment to Statutory Auditors:* 

i) Audit Fees 5.00 9.00 

ii) Tax Audit Fees 1.50 1.50 

iii) Management Services and Certification work 5.04 2.00 

iv) Reimbursement of Expenses 0.40 2.48 

b) Payment to Branch Auditors* 

i) Audit Fees 4.00 Nil 

ii) Management Services and Certification work 2.31 Nil 

iii) Reimbursement of Expenses 2.99 Nil 

* excluding Service Tax 

c) Directors Travelling Expenses 30.15 33.47 

2008-09 2007-08 

9) Sundry Creditor include acceptances 4388.48 392.14 




10) Earning per share 


(Rs in lacs) 

2008-09 2007-08 

Profit after Tax (Rs in lacs) 10774.62 16033.89 

Number of shares outstanding 17467713 17467713 

Earning per share (Basic) (Rs.) 61.68 91.79 

11) Computation of Net Profit in accordance with Section 198 of the Companies Act, 1956 and Commission payable to Directors 

2008-09 2007-08 

Profit before tax as per Profit and Loss Account 11771.75 12107.48 

Add: Directors' Remuneration 159.77 126.59 

Executive Directors’ Commission 131.08 110.40 

Non Executive Directors' Commission 8.00 8.00 

Total 12070.60 12352.47 

Profit under Section 198 of the Companies Act, 1956. 12070.60 12352.47 

Commission Payable 

a) To the Managing Director @ 1.00% of Net Profit restricted to Annual Salary 63.48 55.20 

b) To the Joint Managing Director @ 1.00% of Net Profit restricted to Annual Salary 63.48 55.20 

c) To the Executive Director @ 0.50% of Net Profit restricted to Annual Salary 4.13 Nil 

d) To the Non Executive Directors @1.00% of Net Profit restricted to Rs 1.00 lac per Director 8.00 8.00 

(Previous Year Rs 1.00 lac per Director) 

12) Directors' Remuneration include: 

2008-09 2007-08 

i) Salaries 139.23 110.40 

ii) Contribution to Provident and Other Funds 16.23 13.25 

iii) Other Perquisites 4.31 2.94 

iv) Commission 139.09 118.40 

13) Financial and Derivative Instruments: 

a) The Company had entered into certain derivative transactions, the cash flows arising therefrom being recognised in the books of 

account as and when the settlements took place in accordance with the terms of the respective contracts over the tenure thereof. 

However, in pursuance of announcement dated March 29, 2008 of “The Institute of Chartered Accountants of India” on “Accounting 

for derivatives” and as a matter of prudence: 

i) mark to market loss on account of derivative transaction as on March 31, 2009 estimated to be Rs 510.46 lacs out of which 

Rs 313.94 lacs has been provided in previous year and balance has been accounted during current year. 

ii) 

in respect of another derivative contract in respect of which the claim raised was at Rs 404.18 lacs as on March 31, 2008 has 

ceased to exist on November 19, 2008 and Knock Out intimation has since been received during the year. The Claim raised on 

the Company interalia including on account of daily range accrual as on March 31, 2009 estimated to be Rs 1636.53 lacs 

including interest has been provided for during the year. 

The matters are subjudice and the Company has been legally advised that these contracts are void ab- initio. 

2008-09 2007-08 

b) Outstanding derivative instruments 510.46 3993.25 

c) Foreign currency exposure outstanding as on March 31, 2009 whish has not been 

hedged by the derivative instruments: 

Loans – 9297.11 

Creditors 3203.02 1779.73 

Debtors 208.72 1069.01 

d) The amount of Exchange Gain/(Loss) of Foreign Currency Transaction adjusted to 362.40 310.07 

respictive heads of accounts of the Profit and Loss Account 





(Rs in lacs) 

2008-09 2007-08 

14) a) Electricity duty waiver benefit under State Incentive Schemes and subsidy received 108.76 81.78 

under State Incentive has been credited to Power and Fuel Account. 

b) Interest subsidy towards Interest on Term Loan receivable under State Investment 75.21 – 

Promotion Policy has been adjusted with Interest on Term Loan paid. 

c) Amount included in VAT Credit Inputs Account shown under Loans and Advances can be 515.23 411.40 

utilised only after repayment of corresponding amount of Sales Tax Deferred Loan. The 

balance amount of Rs 78.62 lacs (Previous year Rs 201.84 lacs) is available for utilisation. 

15) Prior Period item aggregating Rs 448.03 lacs (previous year Rs Nil) has been booked under the head Miscellaneous expenditure in the 

Profit and Loss Account. Pursuant to the Scheme of Amalgamation and Re-organization of Capital (the Scheme) under Section 391 to 

394 of the Companies Act, 1956, with effect from April 1, 2006, (the appointed date), Ace Glass Containers Limited (AGCL) had merged 

with the Company in the previous year. In terms of the Scheme, all fixed assets were recorded at the fair values as of the appointed date. 

While recording such assets in the books in the previous financial year, the value of certain assets were overstated / understated. These 

assets have now been restated in current year at their appropriate value by decreasing an amount of Rs 527.77 lacs in the value of fixed 

assets and prior period income adjustment by Rs 79.74 lacs in respect of discarded assets. 

16) The following expenses, incurred on manufactured Moulds have been capitalised and netted from the respective heads of accounts in 

the Profit and Loss Account. 

2008-09 2007-08 

Stores and Spares parts consumed 429.76 399.16 

Power and Fuel 29.27 26.44 

Salaries, Wages and Bonus 95.93 81.15 

Contribution to Provident and other funds 5.55 5.78 

Workman and Staff Welfare Expenses 3.69 3.42 

Repair and Maintenance – Machinery 2.40 1.17 

Repair and Maintenance – Others 115.64 95.68 


Total 693.71 623.50 

17) a) The breakup of Deferred Tax Assets and Deferred Tax Liabilities is as given below: 

Opening as on (Charge)/ Credit Closing as at 

01.04.2008 during the year 31.03.2009 

Deferred Tax Assets 

Brought Forward Losses and unabsorbed depreciation 1956.04 (1956.04) – 

Expenses Allowable on Payment Basis 396.12 274.60 670.72 

Provision for Loss on Derivative transactions 106.71 623.06 729.77 

Provision for doubtful debts 347.69 (54.45) 293.24 

Total Deferred Tax Assets 2806.56 (1112.83) 1693.73 

Deferred Tax Liabilities 

Depreciation 4614.08 1256.35 5870.44 

Total Deferred Tax Liabilities 4614.08 1256.35 5870.44 

Net Deferred Tax Liabilities (1807.52) (2369.18) (4176.71) 

b) In terms of Scheme of Amalgamation under Section 391 to 394 of the Companies Act, 1956 as sanctioned by the Hon’ble High Court 

of Calcutta vide its Order dated April 7, 2008 and by Hon’ble High Court at Delhi vide its Order dated March 19, 2008, deferred tax 

liability of Rs 2369.18 lacs for the year has been adjusted to Share Premium Account. 

c) The Company has provided for Minimum Alternate Tax (MAT). The Company is entitled to MAT Credit and accordingly, based on 

evidences MAT Credit of Rs 355.00 lacs (previous year Rs 1367.57 lacs) has been recognised in these accounts. 

d) Provision for Income Tax has been made after considering the set off of unabsorbed depreciation and brought forward business loss 

of erstwhile Ace Glass Containers Limited merged with the Company with effect from April 1, 2006. 




18) Disclosure pursuant to Clause 32 of Listing Agreement 

Outstanding as 

on 31.03.2009 

(Rs in lacs) 

Maximum 

balance 

Outstanding 

during the year 

1) No interest or interest below the rates specified in Section 372A of Companies Act, 1956* 19.76 40.09 

2) Repayment beyond seven years or no repayment schedule NIL NIL 

3) Repayment on Demand 19.76 40.09 

4) Loan to Associates NIL NIL 

5) Investment by Associates NIL NIL 

* Notes: 

1. Advance to employees pursuant to general business practice and employees welfare. 

2. Interest free advances in the nature of loans and advances given to employees as per general rules of the Company have not been 

considered. 

19) The Company has incurred Rs 38.26 Lacs (Previous year Rs 7.91 lacs) on account of Research and Development expenses, which has been 

charged to Profit and Loss Account. 

20) As per Accounting Standard 15 “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are 

given below: 

Defined Contribution Scheme 

Contribution to Defined Contribution Plan, recognised for the year are as under: 

Employer’s Contribution to Provident Fund 205.68 

Employer’s Contribution to Pension Fund 235.76 

Employer’s Contribution to Superannuation Fund 16.29 

The guidance note on implementing Accounting Standard (AS-15) (Revised 2005) on Employees Benefits issued by Accounting Standard 

Board (ASB) states that provident fund trustees set up by the employers which require the interest shortfall to be made by the employers 

needs to be treated as “Defined Benefit Plan”. According to the management, in consultation to the actuary, it is not practical or feasible 

to actuarially value the Provident liability in the absence of any guidance from Actuarial Society of India and also due to the fact that 

the rate of interest as notified by the Government can vary annually. Accordingly, the Company is currently not in a position to provide 

other related disclosures as required by the aforesaid AS – 15 read with ASB guidance. However, with regard to the position of the fund 

and confirmation to the Trustees of such fund, there is no shortfall as at year-end. 

Defined Benefit Plan 

The employees’ gratuity fund scheme managed by Birla Sun Life Insurance is a defined benefit plan. The present value of obligation is 

determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise 

to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for 

leave encashment is recognised in the same manner as gratuity. 

I. Change in the present value of the Defined Benefit obligation representing reconciliation of opening and closing balances thereof 

are as follows: 

Gratuity 

Gratuity Leave Encashment 

Funded Unfunded Unfunded 

Liability at beginning of the year 619.29 726.88 198.01 

Current Service Cost 53.44 66.83 26.02 

Interest Cost 44.23 57.78 16.74 

Actuarial (Gain) / Loss 68.53 (98.01) 29.93 

Benefits paid 59.21 (35.86) (0.23) 

Liability at the end of the year 726.27 717.61 246.17 




II. 


Changes in the Fair value of plan assets representing reconciliation of opening and closing balances thereof are as follows: 

(Rs in lacs) 

Gratuity 

(Funded) 

Fair value of plan assets at the beginning of the year 597.37 

Expected return on plan assets 47.79 

Actuarial Gain / (Loss) (34.53) 

Employer contribution 40.82 

Benefits paid 59.21 

Fair value of plan assets at the end of the year 592.24 

III. Expense recognised in the Income statement (Under the head “Contribution to provident and other funds” – Refer Schedule Q) 

Gratuity 




Interest Cost 44.23 57.78 16.74 

Expected Return on plan assets 47.79 Nil Nil 

Net Actuarial (Gain) / Loss to be recognised 103.05 (98.01) 29.93 

Expenses recognised in Profit and Loss account 152.93 26.59 72.68 

IV. Balance Sheet Reconciliation 

Gratuity 



Opening Net Liability 21.92 726.88 198.01 

Expenses as above 152.93 26.59 72.68 

Employers Contribution 40.82 35.86 24.51 

Amount Recognised in Balance Sheet 726.27 717.61 246.17 

V. Compensated Absences 

The actuarial liability of Compensated Absences (Unfunded) of accumulated privileged leave of the employees of the Company as 

at March 31, 2009 is Rs 246.17 lacs. 

VI. Principal Actuarial assumptions at the Balance Sheet Date 

Gratuity 



Mortality Table LICI 1994-1996 LICI 1994-1996 LICI 1994-1996 

Discount rate (per annum) 7.50 % 8.00 % 8.50 % / 7.50 % 

Expected rate of return on plan assets (per annum) 8.00 % 8.00 % 8.00 % 

Rate of escalation in salary (per annum) 5.00% 5.00 % 5.00 % 

The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and 

other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. 

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets 

held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management. 

The contributions expected to be made by the Company for the year 2009-10 is yet to be determined. 





21) The Company’s exclusive business is manufacturing and selling of Container Glass and as such in the opinion of the management this 

is the only reportable segment, as per the Accounting Standard 17 on Segment Reporting, issued under Companies (Accounting 


Geographical Segment 

The following table shows the distribution of the Company’s Sales by Geographical market. 

Sales Revenue by Geographical Market 

(Rs in lacs) 

Particulars 2008-09 2007-08 

Domestic Market 130992.67 109628.28 

Overseas Market 12734.64 4333.90 

Total 143727.31 113962.18 

The following table shows the distribution of the Company’s Debtors by Geographical market. 

Sundry Debtors by Geographical Market 




Total 22718.99 16449.63 

22) The accounts of some of the customers are pending reconciliation / confirmation and Sales Tax deferment loan of Rs 1610.55 lacs is 

subject to confirmation and the same have been taken as per the balances appearing in the books. 

A provision of Rs 863.04 lacs (Previous year Rs 991.53 lacs) is carried in the books against doubtful debts and the management is of 

the opinion that the same is adequate and no further provision is required there against. 

23) In the opinion of the Management/Board of Directors, the “Current Assets, Loans and Advances” have a value on realisation in the 

ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. 

24) Disclosure of sundry creditors under current liabilities is based on the information available with the Company regarding the status of 

the suppliers as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” (the Act). There are no delays in 

payment made to such suppliers. There is no overdue amount outstanding as at the balance sheet date. Based on above the relevant 

disclosures u/s 22 of the Act are as follows: 

1. Principal amount outstanding at the end of the year 68.34 

2. Interest amount due at the end of the year Nil 

3. Interest paid to suppliers Nil 

25) Profit or loss on sale of Raw Materials and Stores has been adjusted in consumption. 

26) Stores and Spare Parts consumption includes materials consumed for Repairs and Replacement. 

27) Inventories of Stores and Spare Parts include items, which are lying with the Company. A provision of Rs 679.51 lacs (including Rs 61.48 

lacs for the year) towards obsolescence is carried in the books and the management is of the opinion that the same is adequate and no 

further provision is required there against. 

28) Related Party Disclosures as identified by the management in accordance with the Accounting Standard – 18. 

A) Subsidiary Companies 

i) Glass Equipment (India) Limited 

ii) Quality Minerals Limited 

B) Associate 

i) HNG Float Glass Limited 

C) Directors and Relatives 

i) Mr C. K. Somany – Chairman and Non Executive Director (Relative of Key Management Personnel) 

ii) Mr Sanjay Somany - Managing Director and Key Management Personnel 

iii) Mr Mukul Somany - Jt. Managing Director and Key Management Personnel 

iv) Mr Bharat Somany – Management Trainee (Relative of Key Management Personnel) 

v) Mr R. R. Soni – Executive Director and Key Management Personnel (with effect from October 27, 2008) 




D) Enterprises over which any person described in [C (i) to (iv)] above is able to exercise significant influence and with whom 

the Company has transactions during the year. 

i) AMCL Machinery Limited 

ii) Ceramic Decorators Limited 

iii) Microwave Merchants Private Limited 

iv) Mould Equipment 

v) Noble Enclave and Towers Private Limited 

vi) Somany Foam Limited 

vii) Topaz Commerce Limited 

The aggregate amount of transactions with the related parties as mentioned in (A) above is as given hereunder: 

(Rs in lacs) 

2008-09 2007-08 

Sale of Goods 

Glass Equipment (I) Ltd. 35.21 8.90 

Purchase of Goods 


Quality Minerals Ltd. 269.10 237.06 

Sale of Fixed Assets 

Glass Equipment (I) Ltd. 6.12 Nil 

Purchase of Fixed Assets 


Receiving of Services 


Provision of Facilities 


Dividend Received 


Counter Guarantees Given 


Counter Guarantees Taken 


Payables 



The aggregate amount of transactions with the related party as mentioned in (B) above is as given hereunder: 

2008-09 2007-08 

Sale of Goods 46.06 Nil 

Purchase of Goods 2.51 Nil 

Receiving of Services 0.47 Nil 

Payables 28.65 Nil 

The aggregate amount of transactions with the related parties as mentioned in (C) above is as given hereunder: 

Remuneration 2008-09 2007-08 

1. Mr Sanjay Somany 135.01 117.02 

2. Mr Mukul Somany 137.73 117.02 

3. Mr Bharat Somany 2.34 1.80 

4. Mr R. R. Soni 18.11 Nil 





The aggregate amount of transactions with the related parties as mentioned in (D) above is as given hereunder: (Rs in lacs) 

2008-09 2007-08 

Sale of Goods 

Somany Foam Ltd. 3.21 Nil 

Purchase of Goods 

Mould Equipment 11.70 23.98 

Somany Foam Ltd. 2.86 1.61 

Sale of Fixed Assets 


Purchase of Fixed Assets 

Somany Foam Ltd. Nil 1.33 

Receiving of Services 

Ceramic Decorators Ltd. 112.21 89.08 


Rent Received 


Interest Received 

Microwave Merchants Pvt. Ltd. 36.48 7.67 

Noble Enclave & Towers Ltd. 154.81 14.14 

Topaz Commerce Ltd. 209.17 15.48 

Recovery of Expenses 

AMCL Machinery Ltd. 4.04 Nil 

Interest Paid 



Loan Taken 



Loan Given 

Microwave Merchants Pvt. Ltd. Nil 900.00 

Noble Enclave & Towers Ltd. Nil 1800.00 

Topaz Commerce Ltd. Nil 1800.00 

Loan Repaid 

Ceramic Decorators Ltd. 18.90 Nil 


Receivables 


Loans (including interest accrued net of recovery) 

Microwave Merchants Pvt. Ltd.* 266.22 905.93 

Noble Enclave & Towers Ltd.* 1140.73 1810.93 

Topaz Commerce Ltd.* 1728.27 1811.98 

Payables 



* Companies in which directors are interested as member / director(s). Further, these loans were given by the erstwhile Ace Glass 

Containers Limited (AGCL) and none of the directors was director in AGCL and accordingly, as advised legally, the provisions of Section 

295 of the Companies Act, 1956 are not applicable with regard to these loans. 

E) Transactions for purchase of goods with Mould Equipments are covered under Section 297 of the Companies Act, 1956. Steps are 

being taken to obtain Central Government approval for such transactions. 





29) Units of Bonds & Mutual Funds purchased and redeemed / sold during the year (Face value of Rs 10 each, except otherwise stated) 

2008-09 2007-08 

(Rs in lacs) 

Sl. No. Name of Fund No. of Units Cost No. of Units Cost 

a) Sardar Sarovar Narmada Nigam Ltd. – DDB 2014 Nil Nil 69 34.55 

b) Prudential ICICI Liquid Fund Nil Nil 9931 1.74 

c) Birla Cash Plus Fund Nil Nil 1437485 300.00 

d) ING Vyasya Liquid Fund Nil Nil 4186735 500.00 

e) Birla Sun Life Cash Morgan Fund Nil Nil 10687377 1900.00 

f) HDFC Liquid Fund Nil Nil 6700893 1025.74 

g) UTI Liquid Cash Plan Nil Nil 49848 625.00 

h) HDFC Floating Rate Income Fund Nil Nil 7602172 1099.26 

i) Kotak Floater Short Term Plan Nil Nil 2397372 300.00 

Total Nil Nil 33071882 5786.29 

30) a) The Company has acquired certain assets under financial lease, the cost of which is included in the Gross Blocks of Buildings and 

Vehicles. The lease term is 75 years for Building. The lease term is 3 years for Vehicles, after which the legal title will pass on the 

Company. The lease has been recognised as an asset at the present value of the minimum lease payments. Minimum lease payments 

payable in future at the balance sheet date and their present value are as under There is no escalation clause in the lease agreement 

for vehicles.: 

Particulars Lease payments Present value 

Not later than one year 30.89 21.19 

Later than one year and not later than five year 86.32 69.89 

b) Assets taken under operating leases: 

Office premises and office equipments are obtained on operating lease. There is no contingent rent in the lease agreements. The 

lease term is for 1-3 years and is renewable at the mutual agreement of both the parties. There is no escalation clause in the lease 

agreements. There are no restrictions imposed by lease agreements. There are no sublease and all the leases are cancelable in nature. 

The aggregate lease rentals are charged as “Rent” in Schedule ‘Q’ of the financial statement. 

31) Adjustment made in Reserve and Surplus Account 

2008-09 2007-08 

a) Adjustment made in General Reserve Account 

Add: Adjustment consequent upon amalgamation of erstwhile Ace Glass Containers Ltd. Nil 31391.22 

Add: Transfer from Capital Reserve Nil 0.04 

Add: Transfer from Profit & Loss Account 7000.00 14850.00 

Less: Adjustment on account of transitional provision under AS-15 Nil 118.63 

Less: Loss on Ace Glass Containers Limited for the year ended March 31, 2007 Nil 3146.66 

Less: Carrying Cost of shares held in erstwhile Ace Glass Containers Limited pursuant to 

the Scheme of Amalgamation Nil 7.55 

Less : Merger expenses and others Nil 83.18 

Total 7000.00 42885.24 

b) Revaluation Reserve Account 

Add: Revaluation of Land and Buildings Nil 7554.80 

Less: Transfer to Profit and Loss Account 223.55 281.21 

Less : Adjustment on account of sale/ discard of assets 1.47 60.75 

Total (225.02) 7212.84 

c) Debenture Redemption Reserve 

Add: Transfer from Profit and Loss Account 1250.00 Nil 

Total 1250.00 Nil 

d) Share Premium Account 


Less: Deferred Tax Liability 2369.18 Nil 

Total (2369.18) 12449.54 




32) Details of Products Manufactured, Turnover, Stock, Raw Material Consumed etc. 

a) Capacities and Actual Production: 

2008-09 2007-08 

Installed Actual Installed Actual 

Capacity Production Capacity Production 

I. Glass Plants 

a) Glass Bottles and Vials 927669 767971 849525 691359 

b) Pressed Tumblers 5000 – 5000 – 

Notes: 

1. Installed Capacity and Actual Production has been given in MT. 

2. Licensed Capacity is not given as licensing has been abolished vide Press Note No.9 dated August 2, 1991 and Notification No. 

S.O.477 (E) dated July 25, 1991 issued by Government of India, Ministry of Industry and Department of Industrial Development. The 

installed capacity is as certified by the management. 

b) Finished Goods Stocks and Sales: 

(Rs in lacs) 

SALES* 

STOCKS 

2008-09 2007-08 2008-09 2007-08 

Unit Qty. Value Qty. Value Qty. Value Qty. Value 

Bottles MT 765459 143725.62 695820 113961.15 46797 6990.08 44285 5735.68 

Tumblers MT 19 1.69 10 1.03 – – 19 1.05 

Others # 

(Job Works) 132.32 871.72 – – 

Total 143859.63 114833.90 6990.08 5736.73 

* Sales includes breakages of bottles 

# Others include General Merchandise Sale amounting to Rs 76.95 lacs (Previous Year Rs 163.03 lacs) and sale of services Rs 55.37 

lacs. (Previous year Rs 708.69 lacs) 

c) Details of Purchases and Sales of General Merchandise: 


Opening Stock Purchase Sales Closing Stock 

Description Unit Qty. Value Qty. Value Qty. Value Qty. Value 

LUG Cap ‘000 pcs – – 179 – 179 1.16 – – 

Glass Bottle MT – – 969 56.97 969 75.79 – – 

Float Glass Sq. mt. 12020.50 44.16 – – 12020.50 55.37 – – 

Total 44.16 56.97 132.32 – 

2007-08 

Opening Stock Purchase Sales Closing Stock 

Description Unit Qty. Value Qty. Value Qty. Value Qty. Value 

Roop Cap ‘000 pcs – – 90 1.67 90 2.44 – – 

Glass Bottle MT – – 1213 93.03 1213 103.36 – – 

Float Glass Sq. mt. – – 26580.74 97.46 14560.24 57.23 12050.50 44.16 

Total – 192.16 163.03 44.16 





d) i) Raw Materials Consumed * 

2008-09 2007-08 

Item Unit Quantity Value Quantity Value 

Silica Sand MT 348388 4998.83 316354 4131.34 

Soda Ash MT 155257 18315.31 109442 12903.40 

Cullet MT 281086 11182.35 232458 8049.13 

Others MT 4637.33 3914.85 

Total 39133.82 28998.72 

* Excluding Rs 118.32 lacs (Previous Year Rs 60.73 lacs) being raw material processing charges. 

(Rs in lacs) 

ii) 

Value of Raw Materials, Spare Parts and Components Consumed (As certified): 

* Excluding Rs 1676.49 lacs (Previous Year Rs 1265.59 lacs) being Stores consumption. 

e) C.I.F. Value of Imports 

2008-09 2007-08 

Raw Materials Spare Parts* Raw Materials Spare Parts* 

Value % Value % Value % Value % 

Imported 8181.10 20.91 1573.41 25.68 6502.61 22.42 1219.43 27.08 

Indigenous 30952.72 79.09 4552.60 74.32 22496.11 77.58 3282.81 72.92 

Total 39133.82 100.00 6126.01 100.00 28998.72 100.00 4502.24 100.00 

2008-09 2007-08 


Components, Spare Parts and Stores etc. 4894.01 1497.50 

Capital Goods (including CWIP) 5131.73 1939.26 

f) Expenditure in Foreign Currency 

2008-09 2007-08 

Travelling Expenses 27.41 29.07 

Selling Commission 62.22 46.85 

Finance Charges 153.54 164.83 

Repairs 47.36 6.47 

Professional / Technical Fees 94.27 24.96 

Others 0.04 0.06 

g) Earnings in Foreign Currency 

2008-09 2007-08 

F.O.B. Value of Exports 5772.77 4032.46 

33) Figures for previous year have been regrouped and/or rearranged wherever considered necessary. 

34) Schedule "A" to "L" and "S" form part of Balance Sheet and Schedule "M" to "S" form part of Profit and Loss Account. 






Kolkata 


June 20, 2009 


Balance Sheet Abstract 

Statement Pursuant to Part IV of Schedule VI to the Companies Act, 1956 

Balance Sheet Abstract and the Company’s General Business Profile 

I. Registration Details 

Registration No. 

2 1 - 1 3 2 9 4 

State Code 2 1 

CIN No. 

L26109WB1946PLC013294 

Balance Sheet Date 3 1 0 3 2 0 0 9 

II. Capital Raised during the year (amount in Rs ’000) 

Public Issue 

Rights Issue 

N I L 

N I L 

Bonus Issue 

Private Placement 

N I L 

N I L 

III. Position of Mobilisation and Deployment of Funds (amount in Rs ’000) 

Total Liabilities 

Total Assets 

1 7 4 1 0 0 7 1 

1 7 4 1 0 0 7 1 

Sources of Funds 

Reserves and Surplus 

Paid–up Capital 

9 1 7 7 1 2 6 

1 7 4 6 7 7 

Secured Loans 

4 1 5 2 3 8 1 

Unsecured Loans 

9 2 1 0 6 5 


4 1 7 6 7 1 

Application of Funds 

Net Fixed Assets 

Investments 

9 8 8 5 1 7 3 

1 0 4 5 8 4 6 

Net Current Assets 

Miscellaneous Expenditure 

3 9 1 1 9 0 1 

N I L 

Accumulated Loss 

N I L 

IV. Performance of the Company (amount in Rs ’000) 

Net Income 

Total Expenditure 

1 3 4 4 1 9 4 0 

1 2 2 6 4 7 6 5 

Profit / Loss Before Tax 

Profit / Loss After Tax 

1 1 7 7 1 7 5 

1 0 7 7 4 6 2 

Earnings per Share in Rs 

Dividend % 

6 1 . 6 8 

5 0 . 0 0 

V. Generic Names of Three Principal Products/Services of the Company (as per monetary terms) 

Item Code No. (ITC code) 

Product descriptions 

7 0 1 0 9 0 - 0 1 

G L A S S B O T T L E S 


Product descriptions 

7 0 1 3 0 0 - 0 0 G L A S S W A R E 

Mukul Somany 

Jt. Managing Director 

Sanjay Somany 


Kolkata Priya Ranjan Nirmal Khanna 

June 20, 2009 Company Secretary Sr. Vice President and 



Statement Regarding Subsidiary Companies Pursuant to Section 212 of Companies Act, 1956 

1. Name of the Subsidiary Company Glass Equipment (India) Ltd. Quality Minerals Ltd. 

2. The Financial Year of the Subsidiary Company. Year ended on March 31, 2009 Year ended on March 31, 2009 

3. Holding Company’s interest Entire Subscribed Capital comprising 9,384 Equity Shares of Rs 100/- each 

of 26,400 Equity Shares of Rs 100/- each. out of the Subscribed and Paid Up 

Capital of 9,410 Equity Shares of 

Rs 100/-each. 

4 Extent of holding 100.00% 99.73% 

5 Net Profit of the Subsidiary Rs 2,48,65,016/- Rs 21,04,094/- 

6 For the financial year of the Subsidiary 

A] Profits/(Losses) so far as it concerns the Rs 2,48,65,016/- Rs 20,98,203/- 

members of the Holding Company and not 

dealt with in the Holding Company’s accounts. 

B] Profits/(Losses) so far as it concerns the Rs 26,40,000/- Nil 

members of the Holding Company and dealt 

with in the Holding Company’s accounts. 

7 For previous financial years since it become 

a Subsidiary. 

A] Profits/(Losses) so far as it concerns the Rs 13,45,14,566/- Rs 1,23,69,899/- 

members of the Holding Company and not 

dealt with in the Holding Company’s accounts. 

B] Profits/(Losses) so far as it concerns the Rs 76,14,263/- Nil 

members of the Holding Company and dealt 

with in the Holding Company’s accounts. 

Mukul Somany 

Jt. Managing Director 

Sanjay Somany 


Priya Ranjan 

Nirmal Khanna 

Kolkata Company Secretary Sr. Vice President and 

June 20, 2009 



GLASS EQUIPMENT (INDIA) LIMITED 

Director’s Report 

To the Members 

Your Directors have the pleasure to place before you the Thirty Ninth Annual Report together with Audited Accounts of the Company for 

the year ended March 31, 2009. 


(Amount in Rupees) 

Year ended 31.03.2009 Year ended 31.03.2008 

Gross Sales (Including Excise Duty) 28,92,70,494 20,41,14,416 

Profit Before Interest, Depreciation and Tax 5,32,46,621 3,41,35,624 

Interest and Finance Charges 31,49,791 25,02,550 

Profit Before Depreciation and Tax 5,00,96,830 3,16,33,074 

Depreciation 75,11,057 84,10,910 

Profit Before Tax 4,25,85,773 2,32,22,164 

Provision for Current Tax 1,51,70,000 93,20,000 

Provision for Fringe Benefit Tax 1,64,500 1,29,000 

Provision for Deferred Tax (7,02,411) (19,71,808) 

Profit After Tax 2,79,53,684 1,57,44,972 

Balance brought forward from previous year 44,88,829 68,32,525 

Amount available for appropriation 3,24,42,513 2,25,77,497 

Appropriation 

General Reserve 2,00,00,000 1,50,00,000 

Proposed dividend 26,40,000 26,40,000 

Tax on dividend 4,48,668 2,30,88,668 4,48,668 1,80,88,668 

Balance carried forward to next year 93,53,845 44,88,829 

Working Review 

The Net Sales of the Company was higher at Rs 2599.25 Lacs as 

against Rs 1790.93 Lacs in the previous year. Your Directors are 

optimistic about current year’s performance. 

Dividend 

Your Board of Directors recommend payment of Dividend @ 

Rs 100/- per share on 26,400 Equity Shares of Rs 100/- each for the 

Financial Year 2008-2009. 

Directors 

Shri Bharat Somany, Shri D.D. Taparia and Shri B.K. Kedia have been 

appointed as additional Director of the Company with effect from 

December 13, 2008, April 16, 2009 and April 16, 2009 respectively. 

Shri J.P. Kasera and Smt. Jaya Kanoria retire by rotation and being 

eligible, offer themselves for re-appointment. 

Compliance Certificate 

In accordance with Section 383A of the Companies Act, 1956, and 

Companies (Compliance Certificate) Rules, 2001, the Company has 

obtained a certificate from a Secretary in whole time practice 

confirming that the Company has complied with all the provisions 

of the Companies Act, 1956 and a copy of such certificate is 

annexed to this Report. 

Auditors 

The Auditors Messers Krishan Somani & Associates, Chartered 

Accountants, retire at the ensuing Annual General Meeting and are 

eligible for re-appointment. 


The Notes on Accounts, as referred to in the Auditors Report are 

self explanatory and, therefore, do not call for any further 

comments. 

Particulars of Employees 

Statement of particulars of employees pursuant to section 217(2A) 

of the Companies Act, 1956, read with Companies (Particulars of 

Employees) Rules, 1975 and forming part of Directors’ Report for the 

year ended March 31, 2009 is given in the Annexure to the Report. 

Industrial Relations 

Industrial relations within the Company remained cordial. 

Particulars required under section 217(1) (e) of the Companies 

Act, 1956: - 

A. Conservation of Energy: - 

a) Energy conservation measures taken: - 

The Company continues to give high priority to energy 

conservation. 

The following significant measures have been taken: - 

i) Periodical and preventive maintenance of electrical 

equipment to ensure optimum utilisation of electric 

energy. 

ii) Phased balancing of machines and lighting load. 

iii) Maintaining the power factor by installing the required 

capacitors. 

Glass Equipment (India) Limited | 79

Director’s Report 

b) Additional Investments and proposals: - 

Further energy conservation is planned through replacement 

of inefficient equipment and by providing automatic 

controls to reduce idle running of equipment. 

c) Impact of measures at (a) and (b) for reduction of energy 

consumption and consequent impact on cost of production 

of goods:- 

The energy conservation measures have a nominal 

favourable impact on the cost of the products. 

d) Total energy consumption and energy consumption per unit 

of production as per “Form-A”:- 

Not given, as the Company is not covered under the list of 

specified industries. 

B. Technical Absorption:- 

a) Research and Development (R&D):- 

The Company is working on development of Import 

substitution. The productivity norms and quality of 

components are constantly being monitored for 

improvement. 

b) Technology Absorption, Adaptation & Innovation:- 

The Company has not imported technology during the last 

5 years. The Company is constantly engaged in in-house 

development activities. 

C. Foreign Exchange Earnings And Outgo:- 

The information on foreign exchange and outgo is contained in 

Schedule S(16) (D, E, F & G) 

Directors’ Responsibility Statement Pursuant to Section 

217(2AA) of the Companies Act, 1956. 

Your Directors hereby confirm :- 

that the financial statements are prepared in conformity with 

the accounting standards issued by the Institute of Chartered 

Accountants of India and the requirements of the Companies 

Act, 1956, to the extent applicable to the Company, on the 

historical cost convention, as a going concern and on the accrual 

basis. There are no material departure from prescribed 

accounting standards in the adoption of the accounting 

standards. 

that the directors had 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 of the Company for that year; 

that the directors had taken proper and sufficient care for the 

maintenance of adequate accounting records in accordance 

with the provisions of this Act for safeguarding the assets of the 

Company and for preventing and detecting fraud and other 

irregularities. 


Bahadurgarh 

May 23, 2009 

C. K. Somany 

(Chairman) 

Annexure to the Directors’ Report 

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

1975 and forming part of the Directors’ Report for the Company’s financial year ending March 31, 2009 :- 

a) Employees, who are employed throughout the financial year :- 

Name Age in Years Qualifications Designation/ Commencement Experience Gross Name of Previous 

Nature of of Employment (Years) Remuneration Employer, Post held 

Duties 

(Rupees) 

Sri. C.K. Somany 76 Years I.S.C, FBIM Executive October 1, 2000 56 Years 30,61,038 Hindusthan National Glass & 

(London) Chairman Industries Limited, 

Kolkata, Managing Director 

Notes:- 

1) Remuneration as shown above includes Salary, HRA, Company’s contribution to Provident Fund, Provision for Gratuity, LTA and Medical 

Expenses reimbursement. 

2) The above employee is relative of Shri Sanjay Somany, Shri Mukul Somany, Shri Bharat Somany and Smt. Jaya Kanoria. 

3) The appointment is on contractual basis. 

80 | Glass Equipment (India) Limited

Compliance Certificate 

Registration No. of the Company : 21-65595 

Nominal Capital . Rs 40,00,000/- 

To, 

The Members, 

Glass Equipment (India) Limited, 

2, Red Cross Place, 

Kolkata - 700001 

I have examined the registers, records, books and papers of GLASS 

EQUIPMENT (INDIA) LIMITED (the Company) as required to be 

maintained under the Companies Act, 1956 (the Act) and the rules 

made thereunder and also the provisions contained in the 

Memorandum and Articles of Association of the Company for the 

financial year ended on March 31, 2009 (financial year). In my 

opinion and to the best of my information and according to the 

examinations carried out by me and explanations furnished to me by 

the Company, its officers and agents, I certify that in respect of the 

aforesaid financial year. 

1. The Company has kept and maintained all registers as stated in 

Annexure ‘A’ to this certificate, as per the provisions of the Act 

and the rules made thereunder and all the entries therein have 

been duly recorded. 

2. The Company has duly filed the forms and returns as stated in 

Annexure ‘B’ to this certificate, with the Registrar of Companies, 

Regional Director, Central Government, Company Law Board or 

other authorities within the time prescribed under the Act and 

the rules made thereunder except as otherwise stated. 

3. The Company being a Public Limited Company, comments are 

not required. 

4. The Board of Directors duly met FIVE times respectively on May 

19, 2008, June 11, 2008, July 27, 2008, December 13, 2008 

and February 20, 2009 in respect of which meetings proper 

notices were given and the proceedings were properly recorded 

and signed in the Minutes Book maintained for the purpose. 

5. The Company has not closed its Register of Members during the 

financial year. 

6. The Annual General Meeting for the financial year ended on 

March 31, 2008 was held on September 8, 2008, after giving 

due notice to the members of the Company and the resolutions 

passed there at were duly recorded in Minutes Book maintained 

for the purpose. 

7. No Extra-ordinary General Meeting was held during the financial 

year. 

8. The Company has not advanced any loans to its directors or 

persons or firms or Companies referred to under Section 295 of 

the Act. 

9. The Company has duly complied with the provisions of Section 

297 of the Act in respect of contracts specified in that section. 

10. The Company has made necessary entries in the register 

maintained under Section 301 of the Act. 

11. As there were no instances falling within the purview of Section 

314 of the Act, the Company has not obtained any approvals 

from the Board of Directors, Members or Central Government. 

12. The Company has not issued any duplicate share Certificate 

during the financial year. 

13. i. There was no allotment/transfer/transmission of securities 

during the financial year. 

ii. The Company has not deposited the amount of dividend 

declared in a separate Bank Account as the Company has 

issued a Cheque to the holding Company for dividend on 

September 9, 2008 which is within five days from the date 

of declaration of such dividend. 

iii. The Company has paid dividend to the holding Company 

within a period of 30 (Thirty) days from the date of 

declaration and therefore it has not transferred any amount 

to Unpaid Dividend Account. 

iv. There is no amount lying in unpaid dividend account, 

application money due for refund and there are no deposits, 

debentures etc. as on March 31, 2009. 

v. The Company has duly complied with the requirements of 

Section 217 of the Act. 

14. The Board of Directors is duly constituted and the appointment 

of directors, additional directors, alternate directors and 

directors to fill casual vacancy have been duly made. 

15. The appointment of Whole-time Director has been made in 

Compliance with the provisions of Section 269 read with 

Schedule XIII to the Act except that the return in the prescribed 

form (Form No 25C) has not been filed within 90 days of such 

appointment. 

16. The Company has not appointed any sole selling agents during 

the financial year. 

17. The Company was not required to obtain any approvals of the 

Central Government, Company Law Board, Regional Director, 

Registrar and/ or such authorities prescribed under the various 

provisions of the Act during the Financial year. 

18. The Directors have disclosed their interest in the other 

firms/companies to the Board of Directors pursuant to the 

provisions of the Act and the rules made there under. 

19. The Company has not issued any shares, debentures or other 

securities during the year. 

20. The Company has not bought back any shares during the 

financial year. 

21. The Company has not issued any Preference Shares or 

Debentures. 

22. There were no transactions necessitating the Company to keep 

in abeyance any rights to dividend, rights shares and bonus 

shares pending registration of transfer of shares. 


23. The Company has not invited/accepted any deposits during the 

financial year except some temporary amount borrowed during 

the year which has been repaid within the year. 

24. The amount borrowed by the Company from directors, 

members, public, financial institutions, Banks or other during 

the financial year ended March 31, 2009 are within the limits 

prescribed under Section 293(1)(d) of the Act have been passed 

in duly convened Annual General Meeting held on September 

23, 1996. 

25. The Company has made loans and investments and given 

guarantees to other bodies corporate in compliance with the 

provisions of the Act and has made necessary entries in the 

register kept for the purpose. 

26. The Company has not altered the provisions of the 

Memorandum with respect of situation of the Company’s 

registered office from one state to another during the year under 

scrutiny. 


Memorandum with respect to the objects of the Company 

during the financial year under scrutiny. 


ANNEXURE `A' 

LIST OF REGISTERS MAINTAINED BY THE COMPANY 

82 | Glass Equipment (India) Limited 

Memorandum with respect to name of the Company during the 

year under scrutiny. 


Memorandum with respect to share capital during the year 

under scrutiny. 

30. The Company has not altered its Articles of Association during 

the financial year. 

31. I have been informed by the management that there was no 

prosecution initiated against or show cause notice received by 

the Company and no fines or penalties or any other punishment 

was imposed on the Company during the financial year, for the 

offences under the Act. 

32. The Company has not received any money as security from its 

employees during the financial year. 

33. The Company has generally deposited both employees’ and 

employer’s contribution to Provident Fund generally in time with 

prescribed authorities pursuant to Section 418 of the Act. 

Signature 

Babu Lal Patni 

Kolkata 


May 23, 2009 C.P.No : 1321 

S.N Particulars Under Section 

01. Register of Charges 143 

02. Register of Members 150 

03. Index of Members 151 

04. Directors’ Minute Book 193 

05. Shareholders’ Minute Book 193 

06. Register of Contracts (Part I) 301 

07. Register of Contracts (Part II) 301 

08. Register of Directors 303 

09. Register of Directors Shareholdings 307 

10. Register of Investments 372A 

11. Register of Allotment 

12. Register of Transfer 

ANNEXURE `B' 

Forms and Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government or other 

authorities during the financial year ended March 31, 2009. 

S.N. Form No./Return Filed Under For Date of Whether filed If delay in filing 

Section filing within prescribed whether requisite 

Time 

additional fee paid 

YES/NO 

YES/NO 

01. Form No 23AC 220 Balance Sheet 14.10.08 NO YES 

as at 31.03.2008 

02. Form No 66 Proviso to Section 383A (1) Compliance Certificate 30.09.08 YES N.A. 

03. Form No 20B 159 Annual Return made 06.11.08 YES N.A. 

upto 08.09.08 

04. Form No 32 303 Resignation of 12.07.08 NO YES 

Dated 19.05.08 

Directors 

05. Form No 32 303 Appointment 12.01.09 YES N.A 

Dated 13.12.08 

of Director


To the Members of 

GLASS EQUIPMENT (INDIA) LIMITED 

1. We have audited the attached Balance Sheet of GLASS 

EQUIPMENT (INDIA) LIMITED, as at March 31, 2009, the Profit 

and Loss Account and also the Cash Flow Statement of the 

Company for the year ended on that date annexed thereto. 

These financial statements are the responsibility of the 

Company’s management. Our responsibility is to express an 

opinion on these financial statements based on our audit. 

2. We conducted our audit in accordance with auditing standards 

generally accepted in India. Those Standards require that we 

plan and perform the audit to obtain reasonable assurance 

about whether the financial statements are free of material 

misstatement. An audit includes examining, on a test basis, 

evidence supporting the 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. 

3. As required by the Companies (Auditor’s Report) Order, 2003 as 

amended to-date, issued by the Central Government in terms 

of Section 227 (4A) of the Companies Act, 1956, we enclose in 

the Annexure a statement on the matters specified in paragraph 

4 & 5 of the said Order. 

4. Further to our comments in the Annexure referred to above, we 

report that: 

d) In our opinion, the Balance Sheet and the Profit and Loss 

Account dealt with by this report comply with the 

Accounting Standards referred to in sub-section (3C) of 

Section 211 of the Companies Act, 1956 to the extent 

applicable. 

e) On the basis of the written representations received from 

the Directors of the Company as at March 31, 2009, and 

taken on record by the Board of Directors, we report that 

none of Directors is disqualified from being appointed as a 

Director of the Company under clause (g) of sub-section (1) 

of section 274 of the Companies Act, 1956. 

f) In our opinion, and to the best of our information and 

according to the explanations given to us, the said accounts 

read together with the significant accounting policies and 

other 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 the case of the Balance Sheet, of the state of affairs 

of the Company as at March 31, 2009; and 

ii) In the case of the Profit & Loss Account, of the PROFIT 

of the Company for the year ended on that date; and 

iii) In the case of the Cash Flow Statement, of the Cash 

Flows for the Year ended on that date. 

a) We have obtained all the information and explanations, 


necessary for the purpose of our audit. 

b) In our opinion, proper books of accounts as required by law, 

have been kept by the Company so far as appears from our 

examination of such books. 

c) The Balance Sheet and Profit & Loss Account dealt with by 

this report are in agreement with the books of account. 

Delhi 

May 23, 2009 

For Krishan Somani & Associates 

Chartered Accountants, 

(Krishan Somani) 

Proprietor 

Membership No : 089879 


Annexure to the Auditors’ Report 

(Referred to in paragraph (3) of our report of even date on the statement of accounts of Messrs. GLASS EQUIPMENT (INDIA) LIMITED 

for the year ended March 31, 2009.) 

1. a) The Company has maintained proper records showing full 

particulars, including quantitative details and situation of 

fixed assets. 

b) The fixed assets have been physically verified by the 

management during the year. In our opinion, the frequency 

of verification is reasonable having regard to the size of the 

Company and the nature of its assets. The discrepancies 

reported on such verification were not material and have 

been properly dealt with in the books of account. 

c) In our opinion, the disposals of fixed assets during the year 

does not affect the going concern assumption. 

2. a) The management has conducted the physical verification of 

inventory at reasonable intervals, except for inventories lying 

with outside parties, which have, however, been confirmed 

by them. 

b) In our opinion, the procedure followed by the management 

for such physical verification are reasonable and adequate in 

relation to the size of the Company and nature of its 

business. 

c) The Company is maintaining proper records of inventory. 

The discrepancies noticed on verification between physical 

inventories and the book records were not material in 

relation to the operation of the Company and the same have 

been properly dealt with in the books of account. 

3. a) The Company has not granted any loans, secured or 

unsecured to Companies covered in the register maintained 

under Section 301 of the Companies Act, 1956. Therefore 

the provisions of clause – 4 (iii) (a) to (d) are not applicable 

to the Company. 

b) The Company had taken an unsecured loan from a 

Company listed in the register maintained under Section 301 

of the Companies Act, 1956. The maximum balance 

outstanding during the year was Rs 70.28 lacs and the 

amount was repayable on demand. 

c) In our opinion, the rate of interest and other terms and 

conditions of the loan taken by the Company, are prima 

facie not prejudicial to the interest of the Company. 

d) The repayment of principal amount and interest was regular. 

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 for the 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 observed in the 

internal controls. 

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

to the information, explanations and representations given 

to us, we are of the opinion that all transactions that need 

to be entered into the register in pursuance of Section 301 

of the Companies Act, have been so entered. 

b) Based on the information and explanations given to us, it is 

our opinion that the transactions exceeding the value of 

Rs Five Lacs in respect of any party during the year have been 

made at a prices which are prima facie, reasonable, having 

regard to the prevailing market prices at the relevant time 

where such prices are available. 


explanations given to us, the Company has not accepted any 

deposits from the public within the meaning of Section 58A and 

58AA of the Companies Act, 1956 and the rules framed there 

under. 

7. The Company has an internal audit system, which in our 

opinion, is commensurate with the size and nature of its 

business. 

8. As informed to us, the maintenance of cost records has not been 

prescribed by the Central Government u/s 209(1)(d) of the 

Companies Act, 1956, in respect of the activities carried on by 

the Company. 


9. a) Based on the audit procedures applied by us and according 

to the information and explanations provided by the 

management, the Company is generally regular in 

depositing the statutory dues including Provident Fund, 

Investor Education and Protection Fund, Employees State 

Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, 

Custom Duty, Excise Duty, Cess and other statutory dues 

with the appropriate authorities. 

b) According to the information and explanations given to us, 

there are no undisputed amounts payable in respect of 

Income Tax, Sales Tax, Wealth Tax, Custom Duty, Service 

Tax, Excise Duty and Cess outstanding as at the year end, 

for a period of more than six months from the date they 

become payable. 

c) According to the information and explanations given to us, 

there are no dues of Sales Tax, Income Tax, Custom Duty, 

Wealth Tax, Service Tax, Excise Duty or Cess outstanding on 

account of any dispute. 

10. The Company has no accumulated losses at the end of financial 

year and it has not incurred any cash losses in the current and 

immediately preceding financial year. 

11. According to the information and explanations given to us and 

the records examined by us, the Company has not defaulted in 

repayment of dues to a financial institution or bank or 

debenture holders. 

12. The Company has not granted any loan and advances on the 

basis of security by way of pledge of shares, debentures & other 

Securities. 


explanations given to us, the nature of the activities of the 

Company does not attract any special statute applicable to chit 

fund and nidhi /mutual benefit fund / societies. 

14. In our opinion, the Company has maintained proper records of 

the transactions and contracts of the investments dealt in by the 

Company and timely entries have been made therein. The 

investments made by the Company are held in its own name 

except to the extent of the exemption under Section 49 of the 

Act. 

15. According to the information and explanations given to us and 

in our opinion, the terms and conditions of the guarantees given 

by the Company for loans taken by others from banks or 

financial institutions are prima facie not prejudicial to the 

interest of the Company 

16. The Company has not obtained any term loans during the year. 

17. On the basis of an overall examination of the balance sheet and 

the information and explanations given to us, we report that 

the Company has not utilised any funds raised on short term 

basis for long term investments and vice-versa. 

18. The Company has not made any preferential allotment of shares 

to parties or companies covered under Section 301 of the 

Companies Act during the year. 

19. The Company has not issued any debentures. 

20. The Company has not raised any money through a public issue 

during the year 

21. Based upon the audit procedures performed and the 

information and explanations given by the management, we 

report that no fraud on or by the Company has been noticed or 

reported during the year nor have we been informed of such 

case by the management that causes the financial statement to 

be materially misstated. 



Delhi 

(Krishan Somani) 

May 23, 2009 

Proprietor 

Membership No : 089879 







Share Capital A 26,40,000 26,40,000 

Reserves and Surplus B 20,89,54,502 19,21,24,582 

21,15,94,502 19,47,64,582 

Loan Funds 

Secured Loans C 2,80,41,971 2,14,74,337 

Unsecured Loans D 65,00,000 65,00,000 

3,45,41,971 2,79,74,337 

Deferred Tax Liabilities (Net) 30,17,378 37,19,789 

Total 24,91,53,851 22,64,58,708 


Fixed Assets 

E 

Gross Block 20,74,32,106 20,30,95,292 

Less: Depreciation 13,23,32,156 11,65,79,286 

Net Block 7,50,99,950 8,65,16,006 

Capital Work-in-Progress – 10,40,000 

Investments F 27,269 – 


Current Assets 

Inventories G 12,80,37,192 9,93,48,598 

Sundry Debtors H 7,82,77,744 6,65,22,013 

Cash and Bank Balances I 14,24,972 10,50,047 

Loans and Advances and Other Current Assets J 5,35,35,329 3,64,00,720 

26,12,75,237 20,33,21,378 

Less 


Current Liabilities K 3,44,00,253 2,26,32,736 

Provisions L 5,28,48,352 4,17,85,940 

8,72,48,605 6,44,18,676 

Net Current Assets 17,40,26,632 13,89,02,702 

Total 24,91,53,851 22,64,58,708 

Notes 

S 





Krishan Somani Bharat Somany C.K. Somany 

Proprietor Director Chairman 

417, Laxmi Tower, Commercial Complex, 

Azadpur, Delhi - 110033 

May 23, 2009 





INCOME 

Sales (Gross) M 28,92,70,494 20,41,14,416 

Less : Excise Duty 2,93,45,183 2,50,21,303 

25,99,25,311 17,90,93,113 

Other Income N 19,38,907 32,13,065 

Increase / (Decrease) in Stock O 2,57,26,271 (35,71,277) 

28,75,90,489 17,87,34,901 

EXPENDITURE 

Materials P 16,42,84,275 8,51,79,463 

Manufacturing and Other Expenses Q 7,00,59,593 5,94,19,814 

23,43,43,868 14,45,99,277 

Profit before Depreciation, Interest and Tax 5,32,46,621 3,41,35,624 

Depreciation 15,824,027 84,10,910 

Transferred from Revaluation Reserve (83,12,970) – 

75,11,057 84,10,910 

Interest and Finance Expenses R 31,49,791 25,02,550 

Profit before Tax 4,25,85,773 2,32,22,164 


- Current Tax 1,51,70,000 93,20,000 

- Fringe Benefit Tax 1,64,500 1,29,000 

- Deferred Tax (7,02,411) (19,71,808) 

Profit after Tax 2,79,53,684 1,57,44,972 

Add : Balance brought forward from last year 44,88,829 68,32,525 

Amount available for Appropriation 3,24,42,513 2,25,77,497 


General Reserve 2,00,00,000 1,50,00,000 

Proposed Dividend on Equity Shares 26,40,000 26,40,000 

Tax (including cess) on Proposed Dividend 4,48,668 4,48,668 

Balance carried to the Balance Sheet 93,53,845 44,88,829 


Notes 

S 









May 23, 2009 




2008-09 2007-08 


Net Profit before tax 4,25,85,773 2,32,22,164 

Adjustments for: 

Depreciation 75,11,057 84,10,910 

Interest (Net) 31,24,805 14,33,911 

Fixed Assets written back / loss on sale of Fixed Assets 33,843 10,46,717 

Profit on Sale of Fixed Assets / Investment – (36,442) 

Operating Profit before working capital changes 5,32,55,478 3,40,77,260 

Adjustments for: 

Loans and Advances (1,71,34,609) 5,67,56,780 

Trade receivables (1,17,55,731) (5,84,11,103) 

Inventories (2,86,88,594) (1,27,63,187) 

Trade and other payables 2,28,29,929 79,47,827 

Cash generated from operations 1,85,06,473 2,76,07,577 

Direct Taxes paid (1,53,34,500) (94,49,000) 

Net Cash from Operating activities 31,71,973 1,81,58,577 

B. CASH FLOW FROM INVESTING ACTIVITIES 

Addition in Investment (27,269) – 

Purchase of Fixed Assets (31,33,940) (50,36,625) 

Sale of Fixed Assets 10,000 8,70,000 

Interest received 24,986 10,68,639 

Net Cash used in Investing Activities (31,26,223) (30,97,986) 


Proceeds / (Repayment) from Long term borrowings (Net) 65,67,634 (85,84,217) 

Dividend Paid (26,40,000) (26,40,000) 

Corporate Dividend Tax (4,48,668) (4,48,668) 

Interest paid (31,49,791) (25,02,550) 

Net Cash from Financing Activities 3,29,175 (1,41,75,435) 

Net Changes In Cash And Cash Equivalents 3,74,925 8,85,156 

Cash And Cash Equivalents – Opening Balance 10,50,047 1,64,891 

Cash And Cash Equivalents – Closing Balance 14,24,972 10,50,047 

(represents Cash in hand and Bank balances) 








May 23, 2009 




31.03.2009 31.03.2008 


Authorised 

40000 Equity Shares of Rs 100/- each (Previous Year 40000 Shares of Rs 100/-each) 40,00,000 40,00,000 

40,00,000 40,00,000 

Issued, Subscribed and Paid-up 

26400 Equity Shares of Rs 100/- each fully paidup and held by the holding Company, Hindusthan 26,40,000 26,40,000 

National Glass & Industries Limited and its nominees, (of the above, 1500 Equity Shares 

of Rs 100/- each have been issued for consideration other than cash). 

26,40,000 26,40,000 



As per last Balance Sheet 13,50,00,000 

Add : Transferred from Profit & Loss Account 2,00,00,000 15,50,00,000 13,50,00,000 


As per last Balance Sheet 4,99,95,753 

Add: Adjustment during the Year 2,77,874 

Less : Depreciation on Revalued Assets 83,12,970 4,19,60,657 4,99,95,753 

Share Premium 

As per last Balance Sheet 26,40,000 26,40,000 


Surplus as per Profit and Loss Account 93,53,845 44,88,829 

20,89,54,502 19,21,24,582 

Schedule – C SECURED LOANS 

Working Capital Loans From Banks 

- Cash Credits : Secured by hypothecation of stock of finished goods, semi-finished goods, raw 2,80,41,971 2,14,74,337 

materials, stores and spares including packing material, book debts, other current assets, entire 

plant & machinery and other fixed assets and guaranteed by the holding Company. 

2,80,41,971 2,14,74,337 


From a Corporate Associate 65,00,000 65,00,000 

65,00,000 65,00,000 

Schedule – E FIXED ASSETS 


Particulars Book value at Additions Revaluation Deductions/ Book value at Up to For the Dep. on Deductions/ Upto As at As at 

01.04.2008 Adjustment Adjustment 31.03.2009 31.03.2008 Year Revalued Adjustment 31.03.2009 31.03.2009 31.03.2008 

Assets 

A. TANGIBLE 

Plant & Machinery 19,52,77,461 21,09,219 2,77,874 1,15,000 19,75,49,554 11,39,14,198 62,84,628 8,312,970 71,157 12,84,40,639 6,91,08,915 8,13,63,263 

Office & Other 

Equipment 4,93,781 11,247 – – 5,05,028 2,37,323 17,250 – – 2,54,573 2,50,455 2,56,458 

Furniture & Fittings 11,25,534 1,98,168 – – 13,23,702 4,19,137 60,564 – – 4,79,701 8,44,001 7,06,397 

Vehicles 19,79,651 – – – 19,79,651 6,59,061 1,95,993 – – 8,55,054 11,24,597 13,20,590 

B. INTANGIBLE 

Computer Software 40,78,865 8,15,306 – – 48,94,171 12,16,567 7,78,831 – – 19,95,398 28,98,773 28,62,298 

Technical Know How 1,40,000 – 1,40,000 1,33,000 – – – 1,33,000 7,000 7,000 

Licences Fee – 10,40,000 – – 10,40,000 – 1,73,791 – – 1,73,791 8,66,209 – 

Total 20,30,95,292 41,73,940 2,77,874 1,15,000 20,74,32,106 11,65,79,286 75,11,057 83,12,970 71,157 13,23,32,156 7,50,99,950 8,65,16,006 

Previous Year 15,33,02,720 39,96,625 4,99,95,753 41,99,806 20,30,95,292 11,04,87,907 84,10,910 – 23,19,531 11,65,79,286 8,65,16,006 



Schedule – F 

INVESTMENTS 



(Unquoted - in fully paidup shares) - other than Trade 

HNG International Limited Rs 10/- 134 27,269 – 

Total 27,269 – 



Raw Materials & Components 7,15,97,265 6,83,96,161 

Stores & Spares 27,35,515 29,74,296 

Stock-in-Process 3,22,94,978 1,36,61,072 

Finished Goods 2,14,09,434 1,43,17,069 

12,80,37,192 9,93,48,598 




Considered good – 64,611 

– 64,611 

Other Debts 7,82,77,744 6,64,57,402 

7,82,77,744 6,65,22,013 


Cash Balance on hand 54,980 59,095 

Balance in Post Office Saving Bank Account (Pass Book with Central Excise) 1,000 1,000 


in Current Accounts 6,83,992 9,29,952 

in Fixed Deposit Accounts 6,85,000 60,000 

14,24,972 10,50,047 


(Unsecured, considered good) 

Advances recoverable in cash or in kind or for value to be received 13,06,620 23,30,935 

Advance Income Tax 4,97,89,676 3,20,49,678 

Tax Deducted at Source 60,535 3,36,627 

Advance Fringe Benefit Tax 5,59,046 4,08,271 

Deposits and balances with Government Authorities and Other Departments 7,66,790 7,66,790 

Other Deposits 10,47,568 5,08,419 

5,35,30,235 3,64,00,720 


Interest Receivable 5,094 – 

5,35,35,329 3,64,00,720 



Others 2,52,92,873 1,41,00,095 

Other Liabilities 91,07,380 85,32,641 

3,44,00,253 2,26,32,736 


For Taxation 4,67,41,000 3,15,71,000 

For Gratuity and Unavailed Leave 24,68,454 67,40,542 

For Fringe Benefit Tax 5,50,230 3,85,730 

For Proposed Dividend 26,40,000 26,40,000 

For Tax on Proposed Dividend 4,48,668 4,48,668 

5,28,48,352 4,17,85,940 



Schedule – M 

SALES 


31.03.2009 31.03.2008 

Finished Goods (IS Machine & Spares) 27,38,26,280 18,23,04,045 

Others (Commercial Sales) 1,31,35,358 1,75,32,526 

Service Revenue (Tax deducted at source Rs 58,486, Previous Year Rs 1,08,632) 23,08,856 42,77,845 

28,92,70,494 20,41,14,416 

Less: Excise Duty 2,93,45,183 2,50,21,303 

25,99,25,311 17,90,93,113 


Interest on Deposits, etc. (Tax deducted at Source Rs 2,049, previous year Rs 2,27,995) 24,986 10,68,639 

Miscellaneous Receipts 18,67,677 16,58,968 

Liabilities no longer required written back 18,923 1,46,478 

Provisions in value of diminution on investments / leave written off 27,321 3,02,538 

Profit on sale / discard of fixed assets – 36,442 

19,38,907 32,13,065 


Closing Stock 


Work-in-Process 3,22,94,978 1,36,61,072 

5,37,04,412 2,79,78,141 

Less : 

Opening Stock : 


Work-in-Process 1,36,61,072 1,51,47,397 

2,79,78,141 3,15,49,418 

Increase / (Decrease) 2,57,26,271 (35,71,277) 


Raw Materials Consumed 14,08,99,169 6,72,36,653 

Purchase of Trading Material 2,33,85,106 1,79,42,810 

16,42,84,275 8,51,79,463 


Stores and Spare Parts Consumed 2,00,05,066 1,40,63,376 

Power and Fuel 12,91,206 12,64,333 

Salaries, Wages and Bonus 3,10,44,752 2,42,24,539 

Contribution to Provident and other Funds 22,21,577 18,24,991 

Workmen and Staff Welfare Expenses 26,59,531 18,77,255 

Hire Charges 16,00,000 16,00,000 

Rates and Taxes 83,328 1,01,973 

Repair and Maintenance : 

Plant and Machinery 7,63,537 5,15,306 

Others 1,11,040 1,19,821 

Insurance 1,27,930 2,77,410 

Excise Duty on Stock 2,86,220 (80,361) 

Directors' Remuneration 30,76,638 32,43,835 

Loss on sale / discard of fixed assets 33,843 10,46,717 

Miscellaneous Expenses 67,54,925 93,40,619 

7,00,59,593 5,94,19,814 


Bank 24,61,852 17,87,552 

Others 6,87,939 7,14,998 

31,49,791 25,02,550 




NOTES 

NOTES 

1. Statement on Accounting Polices 

I) Accounting Convention 

The Company prepares its accounts under the historical cost convention, except for certain fixed assets which are revalued on 

accrual basis, except otherwise stated in accordance with normally accepted accounting principles and applicable Accounting 

Standards in India. 

II) 

III) 

IV) 

Fixed Assets 

Fixed Assets are shown at cost of acquisition (net of CENVAT credit w.e.f. April 1, 1996) or cost of construction or at revalued 

amount where such assets have been revalued less depreciation. 

All expenses including interest on funds borrowed specifically for the acquisition, construction and Commissioning of new assets / 

projects are capitalised up to the date of putting the assets to use. 

Expenditure related to and incurred during implementation of new / expansion or modernisation project is included under capital 

work in process. 

Impairment 


recoverable amount of fixed assets is determined. An impairment loss is recognised, whenever the carrying amounts of assets either 

belonging to Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The recoverable amount is the greater of 

assets net selling price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are 

discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable 

amount and such loss either no longer exists or has decreased. Impairment loss / reversal thereof is adjusted to the carrying value 

of the respective assets, which in case of CGU, are allocated to its assets on a prorata basis. 

Depreciation 


i) Depreciation on tangible assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule 

XIV to the Companies Act, 1956. 

ii) Depreciation on increase in value of fixed assets due to revaluation is provided on the basis of remaining useful life on Straight 

Line Method (SLM) and is transferred from Revaluation Reserve to Profit and Loss Account. 


i) Intangible Assets :- 95% value of the Computer Software, Technical Knowhow and License Fee is amortised. Computer Software 

is amortised on SLM @ 16.21% per year. License Fee is amortised on SLM over a period of three years. 

V) Investments 

Long Term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary in the 

value. Current Investments are valued at cost or fair value which ever is lower. 

VI) 

Inventories 

Finished Goods and Work-in-process are valued at lower of cost or net realisable value. Cost for own Manufactured goods comprise 

of materials, labour and other appropriate overheads and is calculated on the basis which is appropriate to the business carried on 

by the Company. 

Raw materials, components, stores and spares are valued at lower of cost or net realisable value. Cost of inventory is arrived at on 

Weighted Average Method and include the taxes and duties other than those recoverable from taxing authorities and other expenses 

incurred for procuring the same. 

Scrap and unserviceable and obsolete stocks are valued at estimated realisable value. 

Excise duty is considered as an element of cost. 

VII) Foreign Currency Transactions 

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign currency 

monetary assets and liabilities at the year-end are translated using closing exchange rates. The loss or gain thereon and also on the 

exchange differences on settlement of the foreign currency transaction during the year are recognised as income or expenses and 

are adjusted to the Profit and Loss Account. 

VIII) Revenue Recognition 

a) All expenses and incomes are accounted on mercantile basis except otherwise stated. 




NOTES (Contd.) 

b) Revenue from sale of goods and services is recognised upon passage of title and rendering of services to the customers which 

generally coincides with delivery. 

c) Insurance and other claims to the extent considered recoverable are accounted for in the year of claim. However, claims and 

refunds whose recovery can not be ascertained with reasonable certainty are accounted for on acceptance / actual receipt basis. 

d) Sales are inclusive of Excise Duty less Return / Shortage / Rebates, if any and net of VAT. 

IX) Employee Benefits (see note – 8) 

Liabilities in respect of employee benefits are provided for as follows :- 

A) Deferred Benefit Plans 

Leave salary of employees on the basis of actuarial valuation by adopting Projected Unit Credit Method as at the year end. 

Gratuity Liability is provided for as per actuarial valuation by adopting Projected Unit Credit Method at the year end. This scheme 

is maintained and administered by an Insurer to which the trustees make periodic contributions. 

B) Deferred Contribution Plans 

Provident Fund and ESI on the basis of actual liability accrued and paid to trust/authority. 

C) Actuarial gain / losses, if any, are immediately recognised in the profit and loss account. 

X) Borrowing Costs 

Borrowing cost that are attributable to the acquisition / construction of fixed assets are capitalised as part of the cost of respective 


XI) 

Earning per Share (EPS) 

The earnings considered in ascertaining the Company’s EPS comprises the net profit after tax (and includes the post tax effect of 

any extra ordinary items). The number of shares used in computing basic EPS is weighted average number of shares outstanding 


XII) Taxation 

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. 

A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision 

is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax 

rates. 

Deferred tax assets are recognised only if there is virtual certainty that they will be realised and are reviewed for the appropriateness 

of their respective carrying values at each balance sheet date. 

XIII) Provision, Contingent Liabilities and Contingent Assets 

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result 

of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognised nor disclosed 

in the financial statements. Contingent Liabilities, if material are disclosed by way of notes. 


2008-09 2007-08 

2. Contingent liabilities not provided for 

a) Income Tax demand against which Company has preferred an appeal 5,87,260 5,87,260 

b) Surety given to sales tax department on behalf of : 

- Holding Company, Hindusthan National Glass & Industries Limited 50,00,000 50,00,000 

c) Bonds executed in favour of Central Excise Department 1,000 1,000 

d) Pending Capital Orders 1,36,358 9,49,296 

- Advance Given – 6,05,354 

e) Corporate Guarantee given on behalf of Somany Foam Limited 32,35,00,000 32,35,00,000 

2008-09 2007-08 

3. Sundry Debtors include : 

- Due from holding Company, Hindusthan National Glass & Industries Limited 7,79,07,922 6,58,57,690 

(Maximum balance: Rs 8,16,19,797) 





4. Salaries, Wages, Bonus include : (Amount in Rupees) 

2008-09 2007-08 

a) Provision for Bonus 32,52,426 26,12,844 

b) Gratuity paid 10,93,842 14,57,565 

5. Miscellaneous Expenses include : 

2008-09 2007-08 

a) Directors’ Travelling Expenses 1,62,200 1,54,089 

b) Professional Fees 35,49,484 63,36,988 

c) Charity & Donation 5,00,000 – 

d) Payment to statutory Auditors : 

- Audit Fees 31,000 31,000 

- Tax Audit Fees 10,000 10,000 

- Certification Work 2,000 – 

- Reimbursement of Expenses 15,655 2,280 

6. a) Directors’ Remuneration include : 

2008-09 2007-08 

i) Salary 17,25,000 17,25,000 

ii) HRA 10,35,000 10,35,000 

iii) Contribution to Provident Fund & other Funds 2,07,000 2,07,000 

iv) Provision for Gratuity 71,875 1,28,125 

v) Medical Expenses Reimbursement – 1,35,629 

vi) LTA 22,163 11,881 

vii) Directors’ Fee 15,600 1,200 

30,76,638 32,43,835 

b) Computation of Net Profit under Section 198 read with Section 349 of the Companies Act, 1956 and commission payable 

to Directors : 

2008-09 2007-08 

Net Profit as per Profit & Loss Account 4,25,85,773 2,32,22,164 

Add: Depreciation 75,11,057 84,10,910 

Directors’ Remuneration 30,76,638 32,43,835 

5,31,73,468 3,48,76,909 

Less: Depreciation under Section 350 of the Companies Act, 1956 75,11,057 84,10,910 

4,56,62,411 2,64,65,999 

7. As per Accounting Standard 15 “Employee Benefits”, the disclosures of employee benefits as defined in the Accounting Standard are 

given below : 

i) The disclosures required under Accounting Standard 15 “Employee Benefits” notified in the Companies (Accounting Standards) 

Rules, 2006, are given below : 


Contribution to Defined Contribution Plan, recognised for the year are as under : 

(Rs in lacs) 



The guidance on implementing Accounting Standard (AS-15) (Revised 2005) on Employees Benefits issued by Accounting Standard 

Board (ASB) states that provident fund trustees set up by the employers which require the interest shortfall to be made by the employer 

needs to be treated as “Defined Benefit Plan”. According to the Management, in consultation to the actuary it is not practical or feasible 

to actuarially value the provident liability in the absence of any guidance from Actuarial Society of India and also due to the fact that 


other related disclosure as required by the aforesaid AS-15 read with ASB guidance. However, with regard to the position of the fund 

and confirmation to the trustees of such fund, there is no shortfall as at year end. 






The Employee’s gratuity fund scheme managed by Birla Sun Life Insurance is a defined benefit plan. The present value of obligation is 


to additional unit of employee benefit entitlement and measures unit separately to build up the final obligation. The obligation for leave 

encashment is recognised in the same manner as gratuity. 

I) Change in the present value of the Defined Benefit obligation representing reconciliation of opening and closing balances thereof 

are as follows : 


Funded Unfunded 

Liability at beginning of the year 90.78 5.46 

Current Service Cost 6.61 1.43 

Interest Cost 6.53 0.32 

Actuarial (Gain) / Loss (6.72) 1.10 

Benefits Paid 7.33 2.30 

Liability at the end of the year 89.87 6.02 

II) Changes in the Fair value of plan assets representing reconciliation of opening and closing balances thereof are as follows : 

(Rs in lacs) 

Gratuity 

(Funded) 







III) Expense recognised in the Income statement (Under the head “Salaries, Wages, Gratuity & Bonus” – Refer Schedule – Q. 



Current Service Cost 6.61 1.43 

Interest Cost 6.53 0.32 

Expected Return on Plan Assets 7.01 – 

Net Actuarial (Gain) / Loss to be recognised 12.28 1.10 

Expenses recognised in Profit and Loss Account 18.42 2.86 

IV) Balance Sheet reconciliation 



Opening Net Liability 3.21 5.46 

Expenses as above 18.42 2.86 

Employers contribution 5.05 2.30 

Amount Recognised in Balance Sheet 16.59 6.02 

V) Compensated Absences 

The actuarial liability of Compensated Absences (Unfunded) of accumulated privileged leave of the employees of the Company as 

at March 31, 2009 is Rs 6.02 lacs. 



Schedule – S NOTES (Contd.) 

VI) Principal Actuarial assumptions at the Balance Sheet 



Mortality Table LICI 1994-1996 LICI 1994-1996 

Discount Rate (per annum) 7.50% 7.50% 

Expected rate of return on plan assets (per annum) 8.00% – 

Rate of escalation in salary (per annum) 5.00% 5.00% 

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other 

relevant factors including supply and demand in the employment market. The above information is certified by the actuary. 



The contributions expected to be made by the Company for the year 2008-2009 is yet to be determined. 


As on 31.03.2009 As on 31.03.2008 

8. a) Plant and Machinery were revalued by an approved valuer, on March 31, 2008 by using 4,19,60,656 4,99,95,753 

residual replacement value method. Accordingly, net amount transferred to 

Revaluation Reserve Account. 

b) Depreciation transferred from Revaluation Reserve Account to Profit & Loss Account. 83,12,970 – 

9. Disclosure of sundry creditors under current liabilities is based on the information available with the Company regarding the status of 


payment made to such suppliers. There is no overdue amount outstanding as at the balance sheet date. 

10. Stores and Spares consumption includes partly for repairs and replacement less directly capitalised. 

11. Profit and / or Loss on sales of raw materials and stores remains adjusted in consumption. 

12. Earning Per Share 

As on 31.03.2009 As on 31.03.2008 

Net Profit attributable to Shareholders 2,79,53,684 1,57,44,972 

Weighted average number of equity shares 26,400 26,400 

Basic earning per share of Rs 100/- each 1059 596 

The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earning per share 

of the Company are same. 

13. Deferred Tax : 

Break up of Deferred Tax Assets and Deferred Tax Liabilities is as given below : 





Expenses charged in the financial statement but allowable as deduction 31,53,457 (3,94,845) 27,58,612 

in future years under Income Tax Act. 

Expenditure allowable on payment basis. 4,30,200 (1,658) 4,28,542 

Total Deferred Tax Assets 35,83,657 (3,96,503) 31,87,154 


Depreciation and related items 73,03,446 (10,98,914) 62,04,532 

Total Deferred Tax Liabilities 73,03,446 (10,98,914) 62,04,532 

Net Deferred Tax Liabilities 37,19,789 (7,02,411) 30,17,378 

14. The Company’s exclusive business is manufacturing and selling of I.S. Glass Forming Machines and its Spares & Accessories and as such 

in the opinion of the management this is the only reportable segment, as per Accounting Standard – 17 on Segment Reporting, issued 

by the “The Institute of Chartered Accountants of India”. 





15. Information pursuant to paragraphs 3 & 4 of Part II of Schedule VI of the Companies Act, 1956. 

A) Capacity & Actual Production : 

Class of Goods Units (a) * 

Licenced Installed Actual 

Capacity Capacity Production 

Glass Manufacturing Machine Nos 10 7 – 

(10) (7) (–) 

Feeder, Accessories & Spares (b) Nos 15 7 – 

(15) (7) (–) 

Glass Ceramic Decorating Machines, Accessories & Spare Parts Nos 12 12 – 

(12) (12) (–) 

Fully Automatic Tile Press Nos 10 10 – 

(10) (10) (–) 

Tile Loading Equipment Nos 10 10 – 

(10) (10) (–) 

Tile Sorting & Packing Equipment Nos 15 15 – 

(15) (15) (–) 

I.S. Machine Conversion Nos 10 10 5 

(10) (10) (3) 

Bottle Inspection & Packing Machine Nos 10 10 – 

(10) (10) (–) 

Conveyor, Single Liners, Ware Transfer, Accessories & Spares Nos 10 10 12 

(10) (10) (7) 

Annealing / Decorating Lehr Nos 5 5 – 

(5) (5) (–) 

Motor Driven Press & Fire Finishing Machine Nos 5 5 – 

(5) (5) (–) 

a) Company has been further permitted to manufacture Filter Presses and Ball Mills (Ceramic Machinery) worth Rs 30 Lacs per annum 

within its total licenced capacity of 10 Glass Manufacturing Machine and 15 Feeders and Spares and Accessories. 

b) The Industrial Licence covers manufacturing of accessories and spares. Since capacity thereof has not been specified in the industrial 

licence, information of installed capacity and actual production are not given. 

* As Certified by the management 

B) Purchases, Stocks and Sales : 


Opening Stock Purchase Closing Stock Sales *** 

Class of Goods Unit Qty. Value Qty. Value Qty. Value Qty. Value 

Feeder, Accessories & Spares Nos – – – – – – – – 

(–) (–) (–) (–) (–) (–) (–) 

I.S. Machine / Conversion Nos – – – – – – 5 5,01,80,409 

(–) (–) (–) (–) (–) (–) (3) (4,47,64,564) 

Conveyor, Single Liners, Ware Nos – – – – – – 12 2,58,02,046 

Transfer, Accessories & Spares (–) (–) (–) (–) (–) (–) (7) (83,72,285) 

Spares & Accessories Nos – * 6,43,45,924 – * 11,02,52,582 – ** 7,57,74,389 – 21,09,79,183 

(–) (5,19,76,432) (–) (6,84,66,579) (–) (6,43,45,924) (–) (14,66,99,722) 

Service Revenue – – – – – – – 23,08,856 

(–) (–) (–) (–) (–) (–) (–) (42,77,845) 

Others – – – – – – – 3,08,573 

(–) (–) (–) (–) (–) (–) (–) (5,54,038) 

* Includes cost of spares and accessories Rs 8,30,00,268 (Previous year Rs 3,62,42,145) taken for departmental use. 

** Includes finished stock of spares and accessories Rs 2,14,09,434 (Previous year Rs 1,43,17,069). 

*** Sales are inclusive of Excise Duty 





C) Raw Material & Components consumed : 

Items Unit Quantity Rupees 

Castings Pcs 47,301 1,36,26,116 

(23,455) (73,38,720) 

Steels M.Ton 359 2,64,33,812 

(111) (1,05,81,190) 

Accessories & Components – – 10,59,16,481 

(5,40,11,062) 

Note: Consumption is including of Sales Rs 2,29,16,983 (Previous year Rs 1,78,04,752). 

D) Value of Raw Materials, Components & Spare Parts consumed (Including Sales) (As certified by the Management) 

2008-09 2007-08 

Raw Materials & Spare Parts Raw Materials & Spare Parts 

Components 

Components 

Rupees % Rupees % Rupees % Rupees % 

Imported 1,05,35,248 7 – – 1,28,54,341 18 – – 

Indigenous 13,54,41,161 93 1,08,92,126 100 5,90,76,630 82 72,56,211 100 

Total 14,59,76,409 100 1,08,92,126 100 7,19,30,971 100 72,56,211 100 


2008-09 2007-08 

E) CIF Value of Imports 

- Spares / Components 6,21,823 2,05,08,532 

F) Expenditure in Foreign Currency 

- Travelling 48,975 8,270 

- Bank Charges 1,744 – 

G) FOB Value of Export 16,88,537 14,27,639 

H) Figures in brackets represent previous year figures. 

J) Related Party Disclosure :- 

Related Party disclosure as identified by the management in accordance with the Accounting Standard 18 issued by the Institute of 

Chartered Accountants of India (“ICAI”) and effective from April 1, 2001. 

a) Name of the related parties where control exists – Holding Company 

• Hindusthan National Glass & Industries Limited 

b) Other related parties and nature of relationship with whom the Company had transactions 

• Fellow Subsidiary :- 

- Quality Minerals Limited 

• Entities over which Directors and their relatives have influence 

- HNG International Limited 

- Somany Foam Limited 

• Directors and Relatives 

- Mr C.K. Somany – Chairman 





Disclosure of Transactions between The Group & Related parties and status of outstanding balances as on March 31, 2009. 

i) Current Year 

(Rs in lacs) 

Holding Fellow Associates Entities over Directors and 

Company Subsidiary which Directors their relatives 

and their 

relatives have 

influence 

Income 

Sales 2941.94 – – – – 

Services Given 25.91 – – – – 

Expenses 

Purchases 41.33 – – – – 

Hire Charges Paid 16.00 – – – – 

Remuneration Given – – – – 30.61 

Sitting Fees Paid – – – – 0.16 

Interest Paid – 6.83 – – – 

Dividend Paid 26.40 – – – – 

Services Taken – – – – – 

Borrowings – 65.00 – – – 

Investments – – – 0.27 – 

Guarantee/Corporate Guarantee :- 

- Given 50.00 – – 3235.00 – 

Outstandings :- 

- Receivables 779.08 – – – – 

- Dividend Payable 26.40 – – – – 



Schedule – S NOTES (Contd.) 

ii) Previous Year 

(Rs in lacs) 

Holding Fellow Associates Entities over Directors and 

Company Subsidiary which Directors their relatives 

and their 

relatives have 

influence 

Income 

Sales 1616.42 – 442.74 – – 

Services Given 4.85 – 43.21 – – 

Interest Received – – – 9.98 – 

Expenses 

Purchases 8.90 – – – – 

Hire Charges Paid 16.00 – – – – 

Remuneration Given – – – – 32.43 

Sitting Fees Paid – – – – 0.01 

Interest Paid – 6.83 – – – 

Dividend Paid 0.26 – – – – 

Services Taken – – 0.03 – – 

Borrowings – 65.00 – – – 

Investments – – – 4.73 – 

Guarantee/Corporate Guarantee :- 

- Given 50.00 – – 3235.00 – 

- Taken 381.00 – – – – 

Outstandings :- 

- Receivables 658.58 – – – – 

- Dividend Payable 26.40 – – – – 

16. Previous year figures have been re-grouped or re-arranged where ever considered necessary. 

17. Schedule A to S form an integral part of Balance Sheet and Profit & Loss Account. 

Signature to Schedule A to S 








May 23, 2009 


Balance Sheet Abstract 

Statement Pursuant to Part IV of Schedule VI to the Companies Act, 1956 

Balance Sheet Abstract and the Company’s General Business Profile 



0 6 5 5 9 5 

State Code 

2 1 

Balance Sheet Date 

3 1 0 3 

2 0 0 9 

II. 

Capital Raised during the year (Amount in Rs Thousands) 

Public Issue 

N I L 

Right Issue 

N I L 

Bonus Issue 

N I L 


N I L 

III. Position of Mobilisation and Deployment of Funds (Amount in Rs Thousands) 


3 3 6 4 0 2 


Paid-Up Capital 

Secured Loans 

Deferred Tax Liability 




IV. Performance of Company (Amount in Rs Thousands) 

Net Income 

2 8 7 5 6 3 

+ – Profit/Loss before Tax 

√ 4 2 5 8 6 

(Please tick Appropriate box + for Profit, – for Loss) 

Earning per Share in Rs 

2 6 4 0 

2 8 0 4 2 

3 0 1 7 

7 5 1 0 0 

1 7 4 0 2 7 

Accumulated Losses 

N I L 

1 0 5 9 

Total Assets 

3 3 6 4 0 2 


2 0 8 9 5 5 


6 5 0 0 

Investments 

2 7 

Misc. Expenditure 

N I L 


2 4 4 9 7 7 

+ – Profit/Loss after Tax 

√ 2 7 9 5 4 

Dividend (%) 

1 0 0 






Product Descriptions 

8 4 7 5 1 0 0 0 G L A S S F O R M I N G M A C H I N E 



8 4 7 5 9 0 0 0 S P A R E S & A C C E S S O R I E S 



N . A . O V E R H A U L I N G & S E R V I C E S 





May 23, 2009 


Directors’ Report 

To the Shareholders of 

QUALITY MINERALS LTD. 

Your Directors have pleasure in presenting the Thirty Fifth Annual 

Report together with Audited Accounts for the year ended March 

31, 2009. 



Year ended Year ended 

31.03.2009 31.03.2008 

Gross Sales 2,62,65,959 2,37,05,689 

Profit before Interest, 

Depreciation & Tax 30,90,882 17,27,358 


Profit Before Tax 30,72,737 17,07,207 

Provision for Current Tax 9,55,400 580856 

Provision for Fringe Benefit Tax 2722 558 

Provision for Deferred Tax 2,861 2,488 

Provision for Income Tax for 

earlier years 10,110 70,757 

Profit After Tax 21,04,094 10,52,548 

Balance brought forward from 

previous year 1,23,12,820 1,12,60,272 

Balance carried forward to next year 1,44,16,914 1,23,12,820 

Working Review 

The Company is solely in the business of supply of Feldspar Powder. The 

Feldspar Lumps purchased from mines are grinded through job workers 

and the powder so produced is supplied. The sales of the Company was 

higher at Rs 262.66 Lacs as against Rs 237.06 Lacs in the previous year. 

Your Directors are optimistic about current year’s performance. 

Dividend 

The Directors do not recommend any dividend for the year and the 

entire profit is to be carried forward. 

Fixed Deposit 

The Company has not accepted any deposits from the public within 

the meaning of Section 58A of the Companies Act, 1956 and as 

such no amount of principal or interest was outstanding as of the 

Balance Sheet date. 

Directors 

Shri D.D. Taparia retires by rotation from the Board of Directors of 

the Company at the ensuing Annual General Meeting and being 

eligible offers himself for re-appointment. 


The Notes on Accounts, as referred to in the Auditors’ Report are 

self-explanatory and therefore, do not call any further comments. 

Auditors 

The Auditors M/s J.M.Vyas & Company, Chartered Accountants, Jaipur, 

retire at the ensuing Annual General Meeting and being eligible, offer 

themselves for re-appointment. 

Particulars of Employees 

There are no employees covered under section 217(2A) of the 

Companies Act, 1956, read with Companies (Particulars of 

Employees) Rules, 1975. 

Conservation of Energy & Technology Absorption & Foreign 

Exchange Earnings & Outgo. 

A) Conservation of Energy 

Our Operations are not energy intensive. The Company has no 

direct consumption of Power and Fuel. 

B) Technology Absorption 

Not Applicable 

C) Foreign Exchange Earnings & Outgo 

The Company has neither any Foreign Exchange earning nor 

outgo. 

Directors’ Responsibility Statement Pursuant to Section 217 

(2AA) of the Companies Act, 1956. 

Your Directors hereby confirm : 

- That in the preparation of annual accounts, the applicable 

accounting standards have been followed along with proper 

explanation relating to material departures. 

- That the Directors had selected such accounting policies and 

applied them consistently and made judgments and estimates that 

are reasonable and prudent so as to give a true and fair view of the 

state of affairs of the Company at the end of the financial year 

ended on March 31, 2009 and of the profit of the Company for 

the year ended March 31, 2009. 

- That the Directors have taken proper and sufficient care for the 

maintenance of adequate accounting records in accordance with 

the provisions of the Act for safeguarding the assets of the 

Company and for preventing and detecting fraud and other 

irregularities. 

- That the Directors had prepared the Annual Accounts on a going 

concern basis. 

Acknowledgement 

Your Directors place on record their grateful appreciation for the 

continued support , assistance and co-operation received from 

Central & State Governments, Banks, Suppliers, Customers and 

Business Associates. 

Your Directors aslo wish to place on record their deep sense of 

appreciation for the committed services by your Company’s 

employees. 

Registered Office 

On behalf of the Board of Directors 

W-27, Greater Kailash II, 

New Delhi – 110048. 

Delhi (Amita Somany) (D.D. Taparia) 

June 1, 2009 Managing Director Director 

102 | Quality Minerals Limited


The Members, 

QUALITY MINERALS LIMITED 

1. We have audited the attached Balance Sheet of M/s QUALITY 

MINERALS LIMITED as at March 31, 2009 and Profit & Loss 

Account and the Cash Flow Statement for the year ended on 

that date. These financial statements are the responsibility of 

the Company’s management. Our responsibility is to express an 

opinion on these financial statements based on our audit. 

2. We conducted our audit in accordance with accounting 

standards generally accepted in India. Those standards require 

that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free of 

material misstatement. An audit includes examining, on 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. As required by the Companies (Auditors’ Report) Order, 2003 

issued by the Central Government in terms of Section 227 (4A) 

of the Companies Act, 1956 we annex hereto a statement on 

the matters specified in paragraphs 4 and 5 of the said Order. 

dealt with by this report comply with the Accounting 

Standards referred to in sub-section (3C) of Section 211 of 

the Companies Act, 1956 to the extent possible. 

e) On the basis of written representations received from the 

Directors as on March 31, 2009 and taken on record by the 

Board of Directors, we report that none of the Directors is 

disqualified as on March 31, 2009 from being appointed as 

a Director in terms of clause(g) of sub-section (i) of Section 

274 of the Companies Act, 1956. 

f) In our opinion and to the best of our information and 

according to the explanations given to us the said accounts 

give the information required by the Companies Act, 1956 

in the manner so required and read with ‘Notes On 

Accounts’ (Schedule P) give a true and fair view in 

conformity with the accounting principles generally 

accepted in India. 

g) There is no amount of Cess payable under section 441A of 

the Companies Act, 1956. 

i) in the case of the Balance Sheet, of the state of affairs 

of the Company as at March 31, 2009; and 

4. Further to our comments in the Annexure referred to above, we 

report that: 

a) We have obtained all the information and explanations 


necessary for the purpose of our audit 

b) In our opinion proper books of account as required by law 

have been maintained by the Company so far as appears 

from our examination of such books. 

ii) 

ii) 

in the case of the Profit & Loss Account of the Company 

of the PROFIT for the year ended on that date; and 

in the case of the Cash Flow Statement, of the cash 

flows for the year ended on that date. 

For and on behalf of 

J.M. Vyas & Co. 


c) The Balance Sheet and Profit & Loss Account dealt with by 

this report are in agreement with the books of accounts. 

d) In our opinion, the Balance Sheet, the Profit & Loss Account 

Jaipur 

June 1, 2009 

J. M. Vyas 

Partner 

Quality Minerals Limited | 103

Statement of matters specified by the Companies (Auditors Report ) Order 2003 relating to the 

financial year ended March 31, 2009 

QUALITY MINERALS LIMITED 

i) a) The Company has maintained proper records showing full 

particulars, including quantitative details and situation of 

fixed assets. 

b) The fixed assets have been physically verified by the 

management during the year. In our opinion, the 

frequency of verification is reasonable having regard to the 

size of the Company and the nature of its assets. The 

discrepancies reported on such verification were not 

material and have been properly dealt with in the books of 

account. 

c) None of the fixed assets have been sold during the year. 

iv) 

d) There are no overdue amounts of more than rupees one 

lac. 

e) The Company has not taken any loans, secured or 

unsecured from companies, firms or other parties covered 

in the register maintained under Section 301 of the 

Companies Act, 1956. 

There are adequate internal control system commensurate 

with the size of the Company and the nature of its business for 

the purchase of inventory and fixed assets and for the sale of 

goods and services. There is no continuing failure to correct 

major weakness in internal control system. 

ii) a) The management has conducted physical verification of 

inventory at reasonable intervals. 

b) In our opinion, the procedures followed by the 

management for such physical verification are reasonable 

and adequate in relation to size of the Company and 

nature of its business. 

c) The Company is maintaining proper records of inventory. 

The discrepancies noticed on verification between physical 

inventories and the book records were not material in 

relation to the operation of the Company and the same 

have been properly dealt with in the books of account. 

iii) a) The Company has not granted any loans, secured or 

unsecured to companies, firms or other parties covered in 

the register maintained under Section 301 of the 

Companies Act, 1956 except one party. The maximum 

balance outstanding during the year was Rs 65,00,000/- 

(previous year Rs 65,00,000/-) and the amount was 

repayable on demand. 

v) 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 all 

transactions that need to be entered into the register in 

pursuance of Section 301 of the Companies Act, 1956 

have been so entered. 

vi) 

vii) 

b) Based on the information and explanations given to us, it 

is our opinion that these transactions have been made at 

reasonable prices having regard to the prevailing market 

prices at the relevant time. 

In our opinion and according to the information and 

explanations given to us, the Company has not accepted any 

deposits from the public within the meaning of Section 58A 

and 58AA of the Companies Act, 1956 and the rules framed 

there under. 

The Company has an internal audit system, which in our 

opinion commensurate with the size and nature of its 

business. 

b) In our opinion, the rate of interest and other terms and 

conditions of the loan granted by the Company, are prima 

facie not prejudicial to the interest of the Company. 

c) The receipt of interest and principal amount was regular. 

viii) 

As informed to us, the maintenance of cost records has not 

been prescribed by the Central Government under 

Section 209(1)(d) of the Companies Act, 1956, in respect of 

the activities carried on by the Company. 


ix) a) The Company is regular in depositing the statutory dues 

including Provident Fund, Investor Education and 

Protection Fund, Employees State Insurance, Income tax, 

Sales tax, Wealth tax, Customs duty, Excise duty and other 

statutory dues with the appropriate authorities. 

xviii) The Company has not made any preferential allotment of 

shares to the parties or companies covered under Section 301 

of the Companies Act, 1956, during the year. 

xix) 

The Company has not issued any debentures. 

b) According to the information and explanations given to 

us, there are no dues of Sales tax, Income tax, Customs 

Duty, Wealth tax, Excise duty outstanding on account of 

any dispute. 

x) The Company has no accumulated losses at the end of 

financial year and it has not incurred any cash losses in the 

current and immediately preceding financial year. 

xi) 

The Company has not defaulted in the repayment of dues to 

any financial institution, bank or debenture holders. 

xx) 

xxi) 

The Company has not raised any money through a public issue 


Based upon the audit procedures performed and the 

information and explanations given to us by the management, 

we report that no fraud on or by the Company has been 

noticed or reported during the year. 

For and on behalf of 

J.M. Vyas & Co. 


xii) 

The Company has not granted any loan and advances on the 

basis of security by way of pledge of shares, debentures and 

other securities. 

Jaipur 

June 1, 2009 

J. M. Vyas 

xiii) 

The provisions of any special statute applicable to chit are not 

applicable in respect of nidhi / mutual benefit fund/societies. 

Partner 

xiv) 

In our opinion the Company has maintained proper records 

of the transactions and contracts of the investments dealt in by 

the Company and timely entries have been made therein. The 

investments made by the Company held in its own name. 

xv) 

The Company has not given any guarantees for loans taken by 

others from banks or financial institutions. 

xvi) 

The Company has not obtained any term loans. 

xvii) On the basis of an overall examination of the balance sheet 

and the information and explanations given to us, we report 

that the Company has not utilised any funds raised on short 

term basis for long term investments and vice-versa. 







Share Capital A 941,000 9,41,000 

Reserves and Surplus B 1,44,73,742 1,23,69,648 

1,54,14,742 1,33,10,648 

Deferred Tax Assets/Liabilities (Net) 34,918 32,057 

Total 1,54,49,660 1,33,42,705 


Fixed Assets 

C 

Gross Block 5,37,529 5,37,529 

Less: Depreciation 3,16,477 2,98,332 

Net Block 2,21,052 2,39,197 

Investments D 1,20,000 1,20,000 


Current Assets 

Inventories E 5,28,859 4,34,518 

Sundry Debtors F 63,88,923 56,95,224 

Cash and Bank Balances G 21,52,374 26,99,759 

Loans and Advances and Other Current Assets H 86,08,510 90,67,145 

1,76,78,666 1,78,96,646 

Less 


Current Liabilities I 16,08,141 30,91,725 

Provisions J 9,61,917 18,21,413 

25,70,058 49,13,138 

Net Current Assets 1,51,08,608 1,29,83,508 

Total 1,54,49,660 1,33,42,705 


P 



For J.M. Vyas & Co. 


For Quality Minerals Ltd. 

J.M. Vyas D.D. Taparia Amita Somany 

Partner Director Managing Director 

Jaipur 

June 1, 2009 





INCOME 

Sales (Gross) K 2,62,65,959 2,37,05,689 

Less : Excise Duty – – 

2,62,65,959 2,37,05,689 

Other Income L 7,85,172 7,94,076 

Increase / (Decrease) in Stock M 94,341 (27,416) 

2,71,45,472 2,44,72,349 

EXPENDITURE 

Materials N 1,55,31,514 1,54,04,861 

Manufacturing and Other Expenses O 85,23,076 73,40,130 

2,40,54,590 2,27,44,991 

Profit before Depreciation, Interest and Tax 30,90,882 17,27,358 


Profit before Tax 30,72,737 17,07,207 


- Current Tax 9,55,400 5,80,856 

- Fringe Benefit Tax 272 558 

- Deferred Tax 2,861 2,488 

- Income Tax of Earlier years 10,110 70,757 

Profit after Tax 21,04,094 10,52,548 

Add : Balance brought forward from last year 1,23,12,820 1,12,60,272 

Balance carried to the Balance Sheet 1,44,16,914 1,23,12,820 



P 








Jaipur 

June 1, 2009 




2008-09 2007-08 


Net Profit before tax 3,072,737 1,707,207 

Adjustment for : 


Interest (Net) (785,172) (793,615) 

Operating Profit before working capital changes 2,305,710 933,743 

Adjustment for : 

Loans and advances 458,635 (709,326) 

Trade receivables (693,699) (243,250) 

Inventories (94,341) 27,416 

Trade and other payables (2,343,080) 1,943,849 

Cash generated from operations (366,775) 1,952,432 

Direct Taxes paid (965,782) (652,211) 

Net Cash from Operating activities (1,332,557) 1,300,221 

B. CASH FLOW FROM INVESTING ACTIVITIES 

Interest received 785,172 793,615 

Net Cash used in Investing Activities 785,172 793,615 

C. CASH FLOW FROM FINANCING ACTIVITIES – – 

Net Changes In Cash And Cash Equivalents (547,385) 2,093,836 

Cash And Cash Equivalents-Opening Balance 2,699,759 605,923 

Cash And Cash Equivalents-Closing Balance 2,152,374 2,699,759 

(Represents Cash in hand and Bank balances) 







Jaipur 

June 1, 2009 




31.03.2009 31.03.2008 


Authorised 

10000 Equity Shares of Rs 100/- each (Previous Year 10000 Shares of Rs 100/-each) 10,00,000 10,00,000 

10,00,000 10,00,000 

Issued, Subscribed and Paid-up 

9410 (Previous Year 9410) Equity shares of Rs 100/- each fully paid up 9,41,000 9,41,000 

9,41,000 9,41,000 


Investment Allowance Reserve 

As per last Balance Sheet 56,828 56,828 


Surplus as per Profit and Loss Account 1,44,16,914 1,23,12,820 

1,44,73,742 1,23,69,648 

Schedule – C FIXED ASSETS 


Particulars Book value at Additions Deductions/ Book value at Upto For the Deductions/ Upto As at As at 

01.04.2008 Adjustment 31.03.2009 31.03.2008 year Adjustment 31.03.2009 31.03.2009 31.03.2008 

Building 3,55,338 – – 3,55,338 1,85,560 8,489 – 1,94,049 1,61,289 1,69,778 

Electricity Fittings 9,182 – – 9,182 7,622 217 – 7,839 1,343 1,560 

Plant & Machinery 1,73,009 – – 1,73,009 1,05,150 9,439 – 1,14,589 58,420 67,859 

Total 5,37,529 – – 5,37,529 2,98,332 18,145 – 3,16,477 2,21,052 2,39,197 

Previous Year 5,37,529 – – 5,37,529 2,78,181 20,151 – 2,98,332 2,39,197 


Schedule – D INVESTMENTS 


Unquoted 

Surendra Khanij (P) Ltd. 10 12000 1,20,000 1,20,000 

1,20,000 1,20,000 

Schedule – E INVENTORIES 


Feldspar Lumps 5,28,859 4,34,518 

5,28,859 4,34,518 

Schedule – F SUNDRY DEBTORS 


Debts due for a period exceeding six months – – 

Other Debts 63,88,923 56,95,224 

63,88,923 56,95,224 




31.03.2009 31.03.2008 

Schedule – G CASH AND BANK BALANCES 

Cash Balance on hand 57,365 1,73,813 

Cheques in hand 1,38,218 – 


in Current Accounts 9,56,791 10,25,946 

in Fixed Deposit Accounts 10,00,000 15,00,000 

21,52,374 26,99,759 

Schedule – H LOANS AND ADVANCES AND OTHER CURRENT ASSETS 


Loans 

To Bodies Corporate 65,00,000 65,00,000 

Advances recoverable in cash or in kind or for value to be received 12,13,909 15,60,632 

Advance Income Tax 8,94,601 10,06,513 

86,08,510 90,67,145 

Schedule – I CURRENT LIABILITIES 


Dues to Micro, Small & Medium Enterprises – – 

Others 10,21,164 25,48,295 

Other Liabilities 5,86,977 5,43,430 

16,08,141 30,91,725 

Schedule – J PROVISIONS 

For Taxation 9,55,400 18,15,227 

For Gratuity and Unavailed Leave 6,517 5,628 

For Fringe Benefit Tax – 558 

9,61,917 18,21,413 

Schedule – K SALES 

Feldspar Powder 2,62,65,959 2,37,05,689 

2,62,65,959 2,37,05,689 

Schedule – L OTHER INCOME 

Miscellaneous Receipts – 461 

Interest Received 

From Bank (TDS Rs 18,431 Previous year Rs 21,501) 1,02,672 1,11,115 

From Others (TDS Rs 1,54,655 Previous year Rs 1,54,655) 6,82,500 6,82,500 

7,85,172 7,94,076 




31.03.2009 31.03.2008 

Schedule – M INCREASE / (DECREASE) IN STOCK 

Closing Stock 


5,28,859 4,34,518 

Less : 

Opening Stock 


Increase / (Decrease) 94,341 (27,416) 

Schedule – N MATERIALS 

Raw Materials Consumed 1,55,31,514 1,54,04,861 

1,55,31,514 1,54,04,861 

Schedule – O MANUFACTURING AND OTHER EXPENSES 

Salaries,Wages and Bonus 2,74,793 2,19,759 

Miscellaneous Expenses 30,364 22,470 

Grinding Charges 78,83,638 67,05,789 

Freight Charges – 69,443 

Directors Remuneration 3,00,000 3,00,000 

Payment to Auditors :- 

Audit Fees 9,927 6,742 

Other Services 24,354 15,927 

85,23,076 73,40,130 

Schedule – P 

ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 

A. Significant Accounting Policy 

1) Basis of Accounting 

The Company prepares its accounts under the historical cost convention on accrual basis, except otherwise stated in accordance with 

normally accepted accounting principles and applicable Accounting Standards in India. 

2) Sales 

Sales are recognised on dispatch of goods by the Company and are reflected in accounts at net realisable value. 

3) Fixed Assets & Depreciation 

Fixed Assets are shown at cost less depreciation. Depreciation has been charged at the rates specified in Schedule XIV to the 

Companies Act, 1956. 

4) Valuation of Inventory 

Raw material is valued at lower of cost or net realisable value. 

5) Earning per Share 

The earnings considered in ascertaining the Company's earning per share comprises of the net profit after tax. The number of shares 

used in computing basic earning per share is weighted average number of shares outstanding during the year. 



Schedule – P ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.) 

B. Notes on Accounts 

1) Taxation 

Tax expenses for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision 

is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. 


31.03.2009 31.03.2008 

2) Sundry Debtors include : 

- Due from holding Company 63,54,829 55,41,637 

3) Amount paid or credited to the Auditors : 

Audit Fee 6,618 6,742 

Tax Audit Fee 3,309 – 

Management Services and Certification work 24,354 15,927 

Total 34,281 22,669 

4) In consonance with Accounting Standard - 22 on "Accounting for Taxes on Income" issued by “The Institute of Chartered Accountants 

of India”, during the year the Company has made provisions for deferred tax assets / liabilities. 

5) Deferred Tax: 

Opening Balance Charge to Profit Closing Balance 

& Loss Account 

Breakup of deferred tax assets/liabilities and reconciliation of current 

year deferred tax charge: 

Deferred Tax Liabilities: 

The impact of difference between carrying amount of fixed assets in 

the financial statements and income tax return 34,497 (645) 35,142 

Total (A) 34,497 (645) 35,142 

Deferred Tax Assets: 

Provision of leave encashment 2,440 (2,216) 224 

Total (B) 2,440 (2,216) 224 

Net Deferred Tax Liability Total (A - B) 32,057 (2,861) 34,918 

6) Related Party Transactions: 

The Company is controlled by Hindusthan National Glass & Industries Limited which owns 99.73% of the Company's shares. 

The following related party transactions were carried during the year: 

Name of the Related Party Nature of Nature of 31.03.2009 31.03.2008 

Relationship Transaction 

1. Hindusthan National Glass and Industries Ltd. Holding Company Income: 

Sales 26,265,959 23,705,689 

2. Glass Equipment (India) Ltd. Under common Income: 

control Interest on loan 682,500 682,500 

3. Smt. Amita Somany Managing Expenses 

Director Remuneration 300,000 300,000 

7) The Company's exclusive business is dealing in minerals and as such in the opinion of the management this is the only reportable 

segment, as per Accounting Standard 17 on Segment Reporting, issued by “The Institute of Chartered Accountants of India”. 

8) In view of the applicability of the provisions of Section 43 A (i) of the Companies Act, 1956, the Company has become a deemed 

public Company and Registrar of Companies, Rajasthan, Jaipur has already made necessary endorsement on the Certificate. 



Schedule – P ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.) 

9) Earning Per Share 


31.03.2009 31.03.2008 

Net Profit attributable to Share Holders 21,04,094 10,52,548 

Weighted average number of equity shares 9,410 9,410 

Basic earning per share of Rs 100/- each 223.60 111.85 

The Company does not have any outstanding dilutive potential equity shares. 

Consequently the basic and diluted earning per share of the Company are the same. 

10) Schedule A to P form an integral part of Balance Sheet as at March 31, 2009 and Profit & Loss Account for the year ended on that 

date. 

11) Previous year figures have been re-grouped or re-arranged wherever considered necessary. 

12) Figures have been rounded off to the nearest rupee. 

C. Information pursuant to paragraphs 3 & 4 of Part II of Schedule VI of the Companies Act, 1956. 

1) Capacity & Actual Production: 

Class of Goods Units Licensed Capacity Installed Capacity Actual Production 

Feldspar Powder M.T. N A N A 15,989.67 

(13,038.28) 

2) Purchase, Stock and Sales: 

Opening Stock Purchase Closing Stock Sales/ Consumption 

Feldspar Powder 

Unit (MT) – – – 15,989.67 

(13,038.28) 

Value (Rupees) – – – 26,265,959 

(23,705,689) 

Feldspar Lumps 

Unit (MT) 509.290 18,845.135 505.285 18,849.140 

Value (Rupees) 434,518 15,531,514 528,859 15,437,173 

3) Raw Material Consumed: 

31.03.2009 31.03.2008 

Units (MT) Value (Rupees) Units (MT) Value (Rupees) 

Feldspar Lumps 18,849.14 15,437,173 18,610.90 15,244,185 



Schedule – P 


D. Balance Sheet Abstract and general profile of the Company under Part IV to Schedule VI of the Companies Act, 1956 



1 5 7 6 

State Code 

1 7 

Balance Sheet Date 

3 1 0 3 

2 0 0 9 

II. Capital Raised during the year (Amount in Rs ‘000) 

Public Issue 

N I L 

Right Issue 

N I L 

Bonus Issue 


N I L 

N I L 

III. Position of Mobilisation and Deployment of Funds (Amount in Rs ‘000) 


1 5 4 5 0 

Total Assets 

1 5 4 5 0 


Paid-Up Capital 

9 4 1 


1 4 4 7 4 

Secured Loans 


N I L 

N I L 

Deferred Tax Liability 

3 5 



Investments 

2 2 1 

1 2 0 


1 5 1 0 9 

Miscellaneous Expenditure 

N I L 

Accumulated Losses 

N I L 

IV. Performance of the Company (Amount in Rs ‘000) 

Turnover 

2 7 1 4 5 

+ – Profit/Loss before Tax 

√ 3 0 7 3 

(Please tick Appropriate box + for Profit, – for Loss) 


2 4 0 7 2 

+ – Profit/Loss after Tax 

√ 2 1 0 4 

Earning per Share in Rs 

2 2 3 . 6 0 

Dividend % 

N I L 




N . A . N . A . 







Jaipur 

June 1, 2009 



To the Board of Directors of 

Hindusthan National Glass & Industries Limited on the Consolidated Financial Statements of Hindusthan National Glass & 

Industries Limited and its Subsidiaries. 

1. We have examined the attached Consolidated Balance Sheet of 

HINDUSTHAN NATIONAL GLASS & INDUSTRIES LIMITED (“the 

Company”) and its subsidiaries and associate as at March 31, 

2009, the Consolidated Profit and Loss Account and also the 

Consolidated Cash Flow Statement for the year then ended on 

that date, annexed hereto. These consolidated financial 

statements are the responsibility of the Company’s 

management. Our responsibility is to express an opinion on 

these financial statements based on our audit. 

2. We conducted our audit in accordance with the generally 

accepted auditing standards in India. These standards require 

that we plan and perform the audit to obtain reasonable 

assurance whether the financial statements are prepared, in all 

material respects, in accordance with an identified financial 

reporting framework and are free of material mis-statements. 

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 

statements. We believe that our audit provides a reasonable 

basis for our opinion. 

3. We did not audit the financial statements of subsidiary 

companies Glass Equipment (India) Limited and Quality Minerals 

Limited for the year ended March 31, 2009 whose financial 

statements reflects total assets of Rs 3544.22 lacs as at March 

31, 2009 and total revenues of Rs 3147.36 lacs and cash flows 

amounting to Rs (1.72) lacs for the year ended as on March 31, 

2009. These financial statements have been audited by other 

auditors whose report(s) has (have) been furnished to us, and in 

our opinion, insofar as it relates to the amounts included in 

respect of the subsidiaries, is based solely on the report of the 

other auditors. 

4. We did not audit the financial statements of associate Company 

HNG Float Glass Limited. The Financial Statements of HNG Float 

Glass Limited for the year ended March 31, 2009 as compiled 

for the purpose of consolidation have been prepared by the 

management and these are subject to audit by their auditors 

and in our opinion, in so far as it relates to the amounts included 

in respect of such associate, is based solely on the said accounts. 

5. Attention is invited to Note 24E of Schedule S regarding 

purchase of goods for which central Government approval as 

required in terms of provisions of Companies Act, 1956 has not 

been obtained by the Company. 

6. Subject to Para 4 and 5 above, we report that: 

i) the consolidated financial statements have been prepared 

by the Company in accordance with the requirements of 

Accounting Standard 21 “Consolidated Financial 

Statements”, Accounting Standard 23 “Accounting for 

Investment in Associates in Consolidated Financial 

Statements”, issued by “The Institute of Chartered 

Accountants of India” and on the basis of the individual 

financial statements of the Company and its subsidiary 

companies and associate included in the consolidated 

financial statements. 

ii) In our opinion, based on our audit and the report of other 

auditors, the Consolidated Financial Statements referred to 

above give a true and fair view of the financial position of 

the Company and its subsidiary companies and associate as 

at March 31, 2009 ; and of the results of their operations for 

the year then ended in conformity with the accounting 

principles generally accepted in India: 

a) in the case of the Consolidated Balance Sheet, of the 

consolidated state of affairs of the Company and its 

subsidiary companies and associate as at 31, 2009; and 

b) in the case of the Consolidated Profit and Loss Account, 

of the consolidated results of operations of the 

Company and its subsidiary companies and associate for 

the year then ended on that date ; and 

c) in the case of the Consolidated Cash Flow Statement, 

of the consolidated cash flows of the Company and its 

subsidiary companies and associate for the year then 

ended on that date. 

For Lodha & Co. 


H K Verma 

Kolkata 

Partner 

June 20, 2009 Membership No: 55104 


Consolidated Balance Sheet As at March 31, 2009 

(Rs in lacs) 

Schedules As at 31.03.2009 As at 31.03.2008 



Share Capital A 1746.77 1746.77 

Reserves and Surplus B 93153.70 86244.22 

94900.47 87990.99 

Loan Funds 

Secured Loans C 41804.23 28957.70 

Unsecured Loans D 9210.65 13127.61 

51014.88 42085.31 

Deferred Tax Liabilities (Net) 4207.24 1845.04 

Total 150122.59 131921.34 


Fixed Assets 

E 

Gross Block 139393.60 127459.54 

Less : Depreciation 48553.01 42181.15 

Net Block 90840.59 85278.39 

Capital Work-In-Progress 8203.39 4510.60 

Investments F 10213.07 11394.50 


Inventories G 22784.41 17343.27 

Sundry Debtors H 22723.03 16456.51 

Cash and Bank Balances I 1175.74 1701.48 

Loans and Advances and Other Current Assets J 19909.53 14059.66 

66592.71 49560.92 

Less: 


Current Liabilities K 19399.72 14399.63 

Provisions L 6327.45 4423.44 

25727.17 18823.07 

Net Current Assets 40865.54 30737.85 

Total 150122.59 131921.34 

Significant Accounting Policies & Notes on Accounts 

S 

The Schedules referred to above form an integral part of Consolidated Balance Sheet 






Kolkata 


June 20, 2009 


Consolidated Profit and Loss Account For the year ended March 31, 2009 

(Rs in lacs) 


INCOME 

Sales M 146105.65 115867.01 

Less : Excise Duty 13049.49 12954.42 

133056.16 102912.59 

Other Income N 2174.21 1122.98 

Increase / (Decrease) in Stock O 1403.94 (460.84) 

136634.31 103574.73 

EXPENDITURE 

Materials P 40844.61 30018.52 

Manufacturing and Other Expenses Q 71904.55 51908.76 

112749.16 81927.28 

Profit before Depreciation, Interest and Tax 23885.15 21647.45 


Transferred From Revaluation Reserve (306.68) (281.21) 

7544.29 7090.44 

Interest and Finance Expenses R 4369.55 2365.07 

11913.84 9455.51 

Profit before Tax 11971.31 12191.94 


- Current Tax 161.35 99.01 

- Minimum Alternate Tax 1310.00 1367.20 

- Less: MAT Credit Entitlement 355.00 955.00 1367.20 – 

- Fringe Benefit Tax 51.64 38.20 

- Deferred Tax (6.99) (2683.19) 

- Income Tax for Earlier years (7.87) (1300.18) 

Profit after Tax 10818.18 16038.10 

Less: Share in Associate 181.66 – 

Net Profit before Minority Interest 10636.52 16038.10 

- Concern Share 10637.21 16038.74 

- Minority (0.69) (0.64) 

Add: Balance brought forward from last year 810.62 620.23 

Amount Available for Appropriation 11447.83 16658.97 


General Reserve 7200.00 15000.00 

Debenture Redemption Reserve 1250.00 – 

Proposed Dividend on Equity Shares 899.79 725.11 

Tax(including Cess) on Proposed Dividend 152.92 123.24 

Balance carried to the Balance Sheet 1945.12 810.62 

11447.83 16658.97 

Basic and Diluted Earning per Share of Rs 10/- each 60.90 91.82 

Significant Accounting Policies and Notes on Accounts S 

The Schedules referred to above form an integral part of Consolidated Profit and Loss Account 






Kolkata 


June 20, 2009 


Consolidated Cash Flow Statement For the year ended March 31, 2009 

Note: 1) The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting Standard 3 (AS-3) - 

Cash Flow Statements issued by The Institute of Chartered Accountants of India. 

2) Previous Year’s figures have been regrouped wherever necessary to conform to the Current Year. 






Kolkata 


June 20, 2009 

118 | Hindusthan National Glass & Industries Limited 

(Rs in lacs) 

2008-09 2007-08 


Net Profit Before Tax and extraordinary items 11971.31 12191.94 

Adjustments to reconcile profit before tax to cash provided by operating activities. 


Bad Debts and Provision for Doubtful Debts 205.54 239.25 

Interest Expenses (Net) 4369.55 2365.07 

Dividend Income (166.71) (0.26) 

Liability/Provision no longer required written back (515.16) (97.38) 

Provision for Diminution in value of Investments (0.23) 0.17 

Prior Period Income – (3.03) 

Interest received (498.39) (132.09) 

(Profit) / Loss on sale of Fixed Assets (Net) 134.04 71.56 

(Profit) / Loss on sale of Current Investments (Net) (119.10) (8.15) 

Operating Profit before working capital changes 22925.14 21717.52 

Changes in current assets and liabilities 

Loans and Advances (148.06) (4600.86) 

Trade and other Receivables (6472.06) (4030.18) 

Inventories (5442.20) (537.45) 

Trade and other Payables 4058.65 3853.33 

Net Cash Generated by Operating Activities 14921.47 16402.36 

Adjustments for : 

Direct Taxes Paid (1550.88) (149.63) 

Fringe Benefit Tax Paid (42.84) (38.27) 

Net Cash from Operating Activities 13327.75 16214.46 

B. CASH FLOWS FROM INVESTING ACTIVITIES 

Purchase of Fixed Assets and Changes in Capital Work in Progress (16617.50) (12927.73) 

Proceeds on Disposal of Fixed Assets 680.78 169.82 

Purchase of Long Term Investment (0.27) (4367.93) 

Sale of Long Term Investment – 42.93 

Purchase of Current Investments – (5794.44) 

Sale of Current Investments 1119.10 5802.59 

Share Application Money (3500.00) – 

Dividend received 166.71 0.26 

Interest received 235.33 59.53 

Net Cash used in Investing Activities (17915.85) (17014.97) 


Proceeds/(Repayment) from long term borrowing (Net) 17041.95 810.38 

Proceeds/(Repayment) from short term borrowings (Net) (8112.38) 3035.44 

Dividend paid including Corporate Dividend Tax (848.05) – 

Interest paid (4019.16) (2349.58) 

Net Cash from Financing Activities 4062.36 1496.24 

Net changes in Cash and Cash equivalents (525.74) 695.73 

Opening Cash and Cash equivalents 1701.48 1005.75 

Cash and Cash equivalents at the end of the year 1175.74 1701.48 

(represents Cash in Hand and Bank balances)

Schedules forming part of the Consolidated Accounts 

(Rs in lacs) 

31.03.2009 31.03.2008 


Authorised 

51,15,00,000 Equity Shares of Rs 10/- each (Previous Year 51,15,00,000 shares of Rs 10/ each) 51150.00 51150.00 

51150.00 51150.00 

Issued, Subscribed and Paid-Up 

1,74,67,713 Equity shares (Previous Year 1,10,43,368 shares) of Rs 10/- each fully paid up of 1746.77 1104.34 

which 58,10,360 Equity Shares of Rs 10/- each were allotted as fully paid up 

Bonus shares by Capitalisation of General Reserve and 64,24,345 Equity Shares of 

Rs 10/- each issued as fully paid up pursuant to a Scheme of Amalgamation and 

arrangement for consideration other than cash. 

Share Suspense Account (pending allotment pursuant to the Scheme of Arrangement) – 642.43 

1746.77 1746.77 

31.03.2009 31.03.2008 


Capital Reserve on Consolidation 2.90 2.90 

Investment Allowance Reserve 0.57 0.57 



Add/(Less) adjustment as referred to in note no. 26 (a) of Schedule "S" 7199.53 67974.29 43034.67 60774.76 



Add/(Less) adjustment as referred to in note no. 26 (b) of Schedule "S" (305.37) 10796.16 7712.80 11101.53 

Debenture Redemption Reserve 

Add/(Less) adjustment as referred to in note no. 26 (c) of Schedule "S" 1250.00 – 

Share Premium 


Add/(Less) adjustment as referred to in note no. 26 (d) of Schedule "S" 2369.18 11184.66 12449.54 13553.84 

Profit & Loss Account 

Surplus as per Profit & Loss Account 1945.12 810.62 

93153.70 86244.22 



Schedule – C 

SECURED LOANS 

(Rs in lacs) 

Notes 31.03.2009 31.03.2008 

I) 12.75% Redeemable Non Convertible Debentures 1 and 2 10000.00 – 

II) Rupee Term Loans 

From Financial Institution 

Export Import Bank of India 2 5304.17 6327.78 

From Banks 

State Bank of India 2 and 3 5996.00 2432.00 

The Honkong & Shanghai Banking Corporation Limited 4 9437.50 4562.50 

III) Foreign Currency Loans 

From Banks 

The Honkong & Shanghai Banking Corporation Limited - PCFC – 599.16 

ICICI Bank Limited - External Commercial Borrowing 2 1929.38 2005.50 

IV) Working Capital Borrowing from Banks 5 8514.12 12709.54 

V) Loans under Finance Schemes 

From Banks 6 449.07 293.05 

From Others 6 136.43 7.13 

VI) Interest accrued and due thereon 37.56 21.04 

41804.23 28957.70 

Notes: 

1) 12.75% Secured Non Convertible Debentures amounting to Rs 100 crores, privately placed (alloted on December 22, 2008) are due for 

redemption at par in three equal installments at the end of 5th, 6th and 7th year from the date of allotment with put/call option at par 

at the end of 3rd year from the date of allotment. 

2) The loans are secured by first charge ranking pari-passu with other first charges created on all immovable properties by way of equitable 

mortgage and hypothecation of all moveable properties both present and future of Rishra, Bahadurgarh and Neemrana Plants, save and 

except specific assets exclusively hypothecated in favour of respective lenders. 

3) These loans are also collaterally secured by second charge on Current Assets of the said plants. 

4) The loans are secured by first charge ranking pari-passu with other first charges created and/or to be created on all immovable properties 

by way of equitable mortgage and hypothecation of all moveable properties both present and future of Rishikesh, Pondicherry and 

Nashik Plants, save and except specific assets exclusively hypothecated in favour of respective lenders. 

5) This is secured by hypothecation of inventories (both present and future) and book debts and second charge on all immovables, moveable 

properties including land and building in favour of consortium bankers led by State Bank of India. 

6) These are secured by hypothecation of the vehicles financed in favour of respective lenders. 


Short Term Loans 

From Banks 5000.00 8555.45 

Non Convertible Debentures * 2500.00 3000.00 

From Others – 27.04 

Others 

Trade Deposits 100.10 100.10 

Deferment Loan 1610.55 1445.02 

9210.65 13127.61 

Note: * 

* Represents Mibor linked Non-Convertible Debentures privately placed with LIC Mutual Fund (previous year with JM Mutual 

Fund). 



Schedule – E 

FIXED ASSETS 

(Rs in lacs) 


Particulars Book Value Additions Deductions/ Book Value Upto For the Deductions/ Upto As on As on 

at 01.04.2008 Adjustments at 31.03.2009 01.04.2008 year Adjustments 31.03.2009 31.03.2009 31.03.2008 

Land 12222.72 28.03 – 12250.75 5.60 – – 5.60 12245.15 12222.72 

Leasehold Land 2009.07 39.29 – 2048.36 – 13.03 – 13.03 2035.33 2003.47 

Buildings 13375.63 335.36 (49.77) 13760.76 2460.94 426.15 – 2887.09 10873.67 10914.69 

Leasehold Buildings 9.18 – – 9.18 0.18 0.16 – 0.34 8.84 9.00 

Plant and Machinery 97740.34 12883.56 2104.12 108519.78 38883.27 7141.00 1360.09 44664.18 63855.60 58857.07 

Furniture and Fixtures 360.27 42.30 82.79 319.78 153.57 18.24 3.62 168.19 151.59 206.70 

Office and Other 

Equipments 373.94 50.77 11.09 413.62 194.89 41.39 11.10 225.18 188.44 179.05 

Vehicles 1306.59 572.98 145.70 1733.87 442.71 168.69 104.30 507.10 1226.77 863.88 

Computer Software 61.80 275.70 – 337.50 39.99 42.31 – 82.30 255.20 21.81 

Total 127459.54 14227.99 2293.93 139393.60 42181.15 7850.97 1479.11 48553.01 90840.59 85278.39 

Previous Year 108304.51 21071.35 1916.32 127459.54 36423.69 7371.65 1614.19 42181.15 85278.39 


Schedule – F INVESTMENTS 

A) Long Term 

Trade 

Fully Paid up Equity Shares 

Unquoted 

Capexil Agencies Ltd. 1000 5 0.05 0.05 

Ceramic Decorators Ltd. 10 7 0.00 0.00 

HNG International Ltd 10 134 0.27 – 

Associate 

HNG Float Glass Ltd. 10 42010000 4201.00 4201.00 

Less: Share of Loss for the year 181.66 – 

4019.34 4201.00 

Other than Trade 

Unquoted 

Units of CAN FMP 13M-SRI (close ended) 10 – 1000.00 

Fully Paid up Equity Shares 

The Calcutta Stock Exchange Association Ltd. 1 8364 167.28 167.28 

Beneficial interest in Shares held in HNG Trust 7.55 7.55 

Beneficial interest in Shares held in ACE Trust 6009.35 6009.35 

Surendra Khanij Pvt Ltd. 10 12000 1.20 1.20 

Hasow Automation Ltd. – 4.73 

Less: Provision for diminution in Investments – 4.73 

GOVERNMENT SECURITIES 

Unquoted 

Deposited with Government Authorities # 

a) 12 Years National Savings Certificate 0.01 0.01 

b) 7 Years National Savings Certificate 0.01 0.01 

c) 6 Years National Savings Certificate 6.49 6.49 

B) Current 

Other than Trade 

Quoted 

Kajaria Ceramics Ltd. 2 5470 1.52 1.56 

# Rs 0.42 lacs since matured but not encashed 10213.07 11394.50 

Aggregate amount of Quoted Investments 1.52 1.56 

Aggregate amount of Unquoted Investments 10211.55 11392.94 

10213.07 11394.50 

Note: 

Market Value of Quoted shares Rs. 1.52 lacs (Previous Year Rs. 1.56 lacs) 



(Rs in lacs) 

31.03.2009 31.03.2008 




Stores, Spare parts, Fuel and Building Materials 9205.19 7189.34 

(Including in Transit Rs 238.94 lacs, Previous Year Rs 172.48 Lacs) 

Packing Materials 640.44 423.81 

Stock in Process 625.10 546.37 


22784.41 17343.27 




Considered good 2733.33 939.95 

Considered doubtful 863.04 991.53 

3596.37 1931.48 

Less: Provision for doubtful debts 863.04 991.53 

2733.33 939.95 

Other Debts 19989.70 15516.56 

22723.03 16456.51 


Cash balance on hand 30.63 31.52 

Cheques in hand 255.27 1078.26 


in Current Accounts 851.37 533.41 

in Fixed Deposit Accounts * 38.46 18.25 

in Margin Money Accounts * – 40.03 

Balances With Post Office in Saving Bank Account 0.01 0.01 

* (Receipts pledged with the banks and Government authorities for Rs 21.61, Previous Year Rs 57.18 lacs) 

1175.74 1701.48 



Loans 

To Bodies Corporate 3049.50 4724.00 

Advances Recoverable in cash or in kind or for value to be received 2392.02 2108.21 

(Net of Doubtful Advances Rs 238.02 lacs, Previous Year Rs 240.65 lacs) 

VAT Credit (Inputs) Account 593.85 613.24 

Share Application Money 3500.00 – 

Advance Income Tax 4896.86 3190.26 

Tax Deducted at Source 364.70 175.80 

Advance Fringe Benefit Tax 85.00 41.75 

MAT Credit Entitlement 1722.57 1367.57 

Deposits and balances with Government Authorities and Others Department 2902.21 1586.35 

Other Deposits 25.55 155.10 

19532.26 13962.28 


Interest accrued on Investments 2.35 1.79 

Interest Receivable 352.75 85.35 

Fixed Assets Held for disposal (at lower of net book value or estimated net realisable value) 22.17 10.24 

19909.53 14059.66 



(Rs in lacs) 

31.03.2009 31.03.2008 



Dues to Micro, Small & Medium Enterprises 68.34 55.68 

Others 15809.93 13340.75 

Interest accrued but not due on Loans 454.64 104.25 

Commission to Directors 139.09 118.40 

Other Liabilities 2927.40 780.53 

Unclaimed dividend 0.32 0.02 

* This is not due for payment to Investor Education & Protection Fund. 

19399.72 14399.63 


For Taxation 3898.23 2445.13 

For Gratuity and Unavailed Leave 1282.51 1088.01 

For Fringe Benefit Tax 94.00 41.95 

For Proposed Dividend 899.79 725.11 

For Tax on Proposed Dividend 152.92 123.24 

6327.45 4423.44 

Schedule – M SALES 


General Merchandise Sale 76.95 163.03 

Others 183.56 703.41 

146105.65 115867.01 

Less: Excise Duty 13049.49 12954.42 

133056.16 102912.59 


Hire charges and Lease Rental 1.20 24.54 

Dividends on Trade and Long Term Investments 166.71 0.26 

Interest on 

- Loan 428.47 51.93 

- Deposits 49.87 20.18 

- Investments 0.62 0.07 

- Others 2.21 0.21 

- Tax Refunds 17.32 0.52 

Rent 39.93 34.38 

Insurance Claims 9.62 1.98 

Miscellaneous Receipts 808.32 483.53 

Liabilities / Provisions no longer required written back 515.16 97.38 

Profit on Assets Sold/Discarded 15.68 15.46 

Profit on Sale of Current Investment - Other than Trade 119.10 8.15 

Foreign Exchange Fluctuations (Net) – 310.07 

Income from derivatives – 71.29 

Prior Period Income – 3.03 

2174.21 1122.98 



(Rs in lacs) 

31.03.2009 31.03.2008 


Closing Stock 



7834.56 6430.62 

Less : 

Opening Stock 

Finished Goods 4765.61 

Add: Transfer pursuant to scheme of amalgamation 5884.25 1648.06 6413.67 

Work-in-Process 424.07 

Add: Transfer pursuant to scheme of amalgamation 546.37 53.72 477.79 

6430.62 6891.46 

Increase / (Decrease) 1403.94 (460.84) 


Raw Materials Consumed 40553.79 29646.93 

Purchase of Trading Material 290.82 371.59 

40844.61 30018.52 


Stores and Spare Parts Consumed 7621.57 5111.74 

Power and Fuel 36853.90 27200.22 

Packing Material Consumed and Packing Charges 9123.08 7605.62 

Salaries, Wages, Bonus and Gratuity 5791.90 4514.95 

Contribution to Provident and Others Funds 763.03 741.04 

Workmen and Staff Welfare Expenses 397.39 439.01 

Rent (Including Lease Rent) 93.43 95.43 

Rates and Taxes 44.04 58.85 

Repair and Maintenance:- 

Building 186.95 132.87 

Plant and Machinery 932.17 1061.60 

Others 239.29 210.98 

Freight outwards, Transport and Other Selling Expenses 

(Net of realisation of Rs 1214.21 lacs, Previous year Rs 983.56 lacs) 1232.83 1004.07 

Washing and Grinding Charges 78.84 67.06 

Commission on Sales 140.78 116.10 

Insurance 153.23 150.22 

Charity and Donation 40.93 31.00 

Bad Debts/Advances Written Off 265.23 185.81 

Less: Provision for Doubtful Debts / advances 265.16 0.07 195.92 (10.11) 

Provision for Doubtful Debtors/Advances 205.47 249.36 

Excise Duty on Stock (177.05) (28.93) 

Director's Remuneration 332.62 280.43 

Provision For Loss on Derivative Transactions 1833.05 313.94 

Foreign Exchange Fluctuation (Net) 2326.33 – 

Loss on sale and discard of fixed assets 149.72 87.02 

Provision for diminution in value of investments (0.23) 0.17 


71904.55 51908.76 



(Rs in lacs) 

31.03.2009 31.03.2008 


On Debentures 429.13 569.50 

On Term Loans 2570.41 1510.40 

Bank and Others 974.27 153.39 

Finance Expenses 395.74 131.78 

4369.55 2365.07 


ACCOUNTING POLICIES AND NOTES ON ACCOUNTS 

Notes on the Consolidated Financial Statement of the Company and its Subsidiaries and Associates. 

1. PRINCIPAL OF CONSOLIDATION 

a) The Consolidated Financial Statements have been prepared in accordance with the Accounting Standard 21 (AS 21) on “Consolidated 

Financial Statements” and Accounting Standard 23 (AS 23) on "Accounting for Investments in Associates in Consolidated Financial 

Statements" issued by “The Institute of Chartered Accountants of India”. 

b) The Subsidiaries (which along with Hindusthan National Glass & Industries Ltd., the holding Company, constitute the group) have 

been considered in the preparation of these consolidated financial statements are: 

Name of Subsidiary 

Percentage of voting power either 

directly or through subsidiaries as at 

31.03.2009 31.03.2008 

Glass Equipment (India) Ltd. 100.00 100.00 


c) Investment in Associate 

Name of Associate 

Percentage of voting power 

held as at 

31.03.2009 31.03.2008 

HNG Float Glass Ltd. 41.33 48.49 

d) Consolidation Procedures 

i) For preparation of consolidated financial statements, the financial statements of the Company and its subsidiaries have been 

combined on a line - by - line basis by adding together like items of assets, liabilities, income and expenditures, after eliminating 

Intra group balances and transactions and the resulting unrealised profit & losses. 

ii) 

iii) 

Investments in Associate is accounted in accordance with AS-23 on "Accounting for Investments in Associates in Consolidated 

Financial Statements", under "Equity Method". 

The difference between the cost of investment in the associate and the share of net assets at the time of acquisition of shares 

in the associate is identified in the financial statements as Goodwill or Capital Reserve as the case may be. 

e) Other Significant Accounting Policies 

I. Accounting Convention 

The accounts, except in respect of certain Fixed Assets, which are stated at fair value or revalued amounts, have been prepared 

on the basis of the historical cost and on the accounting principles of a going concern. The accounts have been prepared in 

accordance with the provisions of the Companies Act, 1956 and Accounting Standards as notified vide Companies (Accounting 


II. 

III. 

Use of Estimates 

The preparation of financial statements require management to make estimates and assumption that affect the reported 

amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the 

reported amounts of income and expenses during the year. Difference between the actual results and the estimates are 

recognised in the year in which the results are known /materialised. 

Fixed Assets 

Fixed Assets are stated at cost of acquisition or cost of construction or at revalued amounts wherever such assets have been 

revalued or at fair value as the case may be. 




IV. 


Depreciation and Amortisation 


i. Depreciation except otherwise stated has been provided at the rates specified under Schedule XIV to the Companies Act, 

1956 on assets installed/acquired up to March 31, 1990 on written down value method and in respect of additions thereafter 

on straight line method. 

ii. Certain Plant and Machinery have been considered as continuous process plant as defined under Schedule XIV to the 

Companies Act, 1956 on the basis of technical evaluation. 

iii. Depreciation on increase in value of Fixed Assets due to revaluation is provided on the basis of remaining useful life as 

estimated by the valuer on the straight line method and is transferred from Revaluation Reserve to Profit and Loss Account. 

iv. Depreciation on incremental cost arising on account of exchange difference is amortised over the remaining life of the 

assets. 

v. Second hand machines are depreciated based on their useful lives as estimated by independent technical experts. 


vi. Computer Softwares are amortised on straight line method @33.33% over a period of three years 

V. Impairment 


recoverable amount of fixed assets is determined. An impairment loss is recognised, whenever the carrying amounts of assets 

belonging to Cash Generating Unit (CGU) exceeds recoverable amount. The recoverable amount is the greater of assets net 

selling price or its value in use. In assessing the value in use, the estimated future cash flows from the use of assets are 

discounted to their present value at appropriate rate. An impairment loss is reversed if there has been change in the recoverable 

amount and such loss either no longer exists or has decreased. Impairment loss/reversal thereof is adjusted to the carrying value 

or the respective assets, which in case of CGU, are allocated to its assets on a prorata basis. 

VI. 

VII. 

Investments 

Long Term Investments are stated at cost, less provision for diminution in value other than temporary, if any. Current Investments 

are valued at cost or fair value whichever is lower. 

Inventories 

Inventories are valued at the lower of cost or estimated net realisable value. In respect of Raw Materials, Stores, Spare Parts, 

Fuel, Building and Packing Materials the cost include the taxes and duties other than those recoverable from taxing authorities 

and other expenses incurred for procuring the same. In respect of Finished Goods and Work-in-Process the cost include 

manufacturing expenses and appropriate portion of overheads. The cost of inventories is determined on the weighted average 

basis. 

Own manufactured moulds used for the manufacture of glass items are recorded at weighted average cost, which includes 

prime cost, factory and general overheads and the same are classified as stores and spare parts under inventories. 

VIII. Foreign Exchange Transactions and Derivatives 

Transactions in foreign currencies are accounted for at the exchange rate prevailing on the date of the transaction. Foreign 

currency monetary assets and liabilities at the year-end are translated using closing exchange rates. The loss or gain thereon 

and also on the exchange differences on settlement of the foreign currency transaction during the year are recognised as 

income or expenses in the Profit and Loss Account. 

Exchange differences arising with respect to forward contracts other than those entered into, to hedge foreign currency risk 

on unexecuted firm commitments or of highly probable forecast transactions are recognised in the period in which they arise 

and the difference between the forwards rate and exchange rate at the date of transaction is recognised as income/expense 

over the life of the contract. 

Keeping in view the announcement of “The Institute of Chartered Accountants of India” dated March 29, 2008 regarding 

accounting for derivatives, mark to market losses on all other derivatives contracts (other than forward contracts dealt as 

above) outstanding as at the year end, are recognised in the accounts. 

IX. 

Revenue Recognition 

i) All Expenses and Incomes are accounted for on mercantile basis except otherwise stated. 





ii) Income from Export Incentives, insurance and other claims, etc is recognised on the basis of certainties as to its utilisation 

and related realisation. 

iii) Sales are inclusive of Packing Charges and Excise Duty but exclusive of Value Added Tax, Rebates, Discounts and Claims etc. 

X. CENVAT / Value Added Tax (VAT) Credit 

Cenvat / VAT credit whenever availed on Fixed Assets is set off with the cost of the assets. Other Cenvat / VAT credit wherever 

availed is adjusted with the cost of purchases of Raw Material or Stores as the case may be. 

XI. 

XII. 

Employee Benefits 

Employee Benefits are accrued in the year services are rendered by the employees. The Company has Defined Contribution Plan 

for its employees comprising of Provident Fund and Pension Fund. The Company makes regular contribution to Provident Fund 

which are fully funded and administered by the Trustees / Government. The Company contributes to the Employees’ Pension 

Scheme, 1995 for certain categories of employees. Contributions are recognised in the Profit and Loss Account on accrual 

basis. 

Long-term employee benefits under define benefit scheme such as gratuity, leave encashment etc. are determined at the close 

of each year at the present value of the amount payable using actuarial valuation techniques. 

Actuarial gains and losses are recognised in the year when they arise. 

Research and Development 

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account in the year in which it is incurred. 

XIII. Subsidies and Grants 

Cash Subsidy related to Fixed Assets to the extent received is adjusted to the cost of respective fixed assets. Subsidy related to 

the total investment in the project is treated as Capital Reserve. Other Government grants including incentives etc. are credited 

to Profit and Loss Account or deducted from the related expenses. 

XIV. Borrowing Cost 

Borrowing cost that are attributable to the acquisition/construction of Fixed Assets are capitalised as part of the cost of respective 


XV. 

Income Tax 

Provision for Tax is made for current tax, deferred tax and fringe benefit taxes. Current tax is provided on the taxable income 

using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference, which 

are capable of reversal in subsequent periods are recognised using tax rates and tax laws, which has been enacted or 

substantively enacted. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient 

future taxable income will be available against which such deferred tax assets will be realised. In case of carry forward of 

unabsorbed depreciation and tax losses, deferred tax assets are recognised only if there is “virtual certainty” that such deferred 

tax assets can be realised against future taxable profits. 

XVI. Lease 

Where the Company is the lessee, finance leases, which effectively transfer to the Company substantially all the risks and 

benefits incidental to ownership of the leased item, are capitalised at the lower of the fair value and present value of the 

minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned 

between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are 

charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalised. 

Leases rentals in respect of assets taken under finance lease up to March 31, 2001 are amortised over the total term of the 

lease (including extended secondary lease term). 

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified 

as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight-line 

basis over the lease term. 

XVII. Provision, Contingent Liabilities and Contingent Assets 

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a 

result of past events and it is probable that there will be an outflow of resources. Contingent Assets are neither recognised nor 

disclosed in the financial statements. Contingent Liabilities, if material are disclosed by way of notes. 




NOTES ON ACCOUNTS 


(Rs in lacs) 

2008-09 2007-08 

2) Contingent liabilities not provided for 

a) Outstanding Bank Guarantees / Letter of Credit 6410.93 1384.86 

b) Income Tax matter in respect of erstwhile AGCL under dispute 5.87 9.28 

c) Sales Tax matter under appeals 216.88 214.25 

d) Excise Duty and Octroi demand issued against which the Company has preferred appeals 

and which in the opinion of the management are not tenable. 1639.10 1703.25 

e) Cases pending with labour courts (to the extent ascertainable) 544.44 549.60 

f) Claim for increased price of land acquired at Bahadurgarh by the then Punjab Government 

and given to the Company against which the claimants have preferred an appeal in the 

Supreme Court against the order of the High Court. 0.30 0.30 

g) Amount of duty against Export Obligation in respect of exemption availed against 

Advance License Scheme. 19.19 4.32 

h) Other Claims against the Company not acknowledged as debt. 110.54 26.10 

i) Corporate Guarantee to bank/ Government authorities given on behalf of Somany Foam 

Limited. 3235.00 3235.00 

j) Counter Guarantee furnished to Government and other authorities on behalf of Glass 

Equipment (India) Ltd. (Subsidiary Company) – 381.00 

k) Surety given to Sales Tax department. 50.00 50.75 

Notes : 

On the basis of current status of individual cases and as per the legal advice obtained, wherever 

applicable the management is of the view that no provision is required in respect of these cases. 

Further Cash outflow in respect of item no. b) to h) as mentioned above is dependent upon 

outcome of final judgment/decision. 

3) In respect of Neemrana Plant a notice has been received from Civil Court filed by the creditors Nil Nil 

of Haryana Sheet Glass Limited demanding their outstanding payments and stating that plant 

can not be transferred unless their dues are paid. However, the matter is under dispute/litigation. 

4) Capital commitments (Net of advance of Rs 1319.85 lacs previous year Rs 362.51 lacs) 10432.75 1222.37 

5) Capital work in progress includes pre-operative expenses pending allocation. 

a) Salary and Wages Nil 23.99 

b) Power and Fuel 11.24 23.02 

c) Miscellaneous expenses 150.80 31.21 

d) Interest on Term Loan 180.16 239.25 

Add: Brought Forward from previous year 413.97 163.97 

Less: Capitalised 756.17 67.47 

Total Carried Forward Nil 413.97 

6) Fixed assets at Nashik Plant estimated to have lower residual lives than that envisaged as per the rates provided in Schedule XIV of the 

Companies Act, 1956. Depreciation has been provided based on the estimated shorter residual lives as follows: 

Particulars of Fixed Assets Rates as Rates of 

prescribed by Depreciation on 

Schedule XIV to assets applied 

the Companies 

Act, 1956 

Buildings (other than factory buildings) 1.63 2.04 

Factory Buildings 3.34 5.21 

Plant and Machinery 

Used for single shift operations 4.75 11.44 

Continuous Process Plant 5.28 11.44 

Used for Triple Shift operations 10.34 11.44 

Furniture & Fixtures 6.33 17.37 

Computers 16.21 17.95 





(Rs in lacs) 

2008-09 2007-08 

7) i) Land and Buildings of Rishra and Bahadurgarh units were revalued by an approved 10891.99 10891.99 

valuer on April 1, 1992 and on March 31, 2006 on current replacement cost basis. 

Accordingly, net amount transferred to Revaluation Reserve Account. 

ii) a) Plant and Machinery of Rishra and Bahadurgarh units were revalued by an approved 4831.31 4831.31 

valuer, on April 1, 1995 on current replacement cost basis. 

b) Plant and Machinery of GEIL unit were revalued by an approved valuer on March 31, 419.61 499.96 

2008 by using residual replacement value method. Accordingly, net amount 

transferred to Revaluation Reserve Account. 

iii) Depreciation transferred from Revaluation Reserve Account to Profit and Loss Account. 306.68 281.21 

8) Miscellaneous Expenses include 

2008-09 2007-08 

a) Payment to Statutory Auditors * 

i) Audit Fees 5.38 9.38 

ii) Tax Audit Fees 1.68 1.60 

iii) Management Services and Certification work 5.30 2.00 

iv) Reimbursement of Expenses 0.56 0.73 

b) Payment to Branch Auditors * 

i) Audit Fees 4.00 Nil 

ii) Management Services and Certification work 2.31 Nil 

iii) Reimbursement of Expenses 2.99 Nil 

* excluding Service Tax 

10) Earning per share 

2008-09 2007-08 

9) Sundry Creditor include acceptances 4388.48 392.14 

2008-09 2007-08 

Profit after Tax (Rs in lacs) 10818.18 16038.10 

Number of shares outstanding 17467713 17467713 

Earning per share (Basic) (Rs) 60.90 91.82 

11) Financial and Derivative Instruments: 

a) The Company had entered into certain derivative transactions, the cash flows arising therefrom being recognised in the books of 

account as and when the settlements took place in accordance with the terms of the respective contracts over the tenure thereof. 

However, in pursuance of announcement dated March 29, 2008 of “The Institute of Chartered Accountants of India” on “Accounting 

for derivatives” and as a matter of prudence: 

i) mark to market loss on account of derivative transaction as on March 31, 2009 estimated to be Rs 510.46 lacs out of which 

Rs 313.94 lacs has been provided in previous year and balance has been accounted during current year. 

ii) in respect of another derivative contract in respect of which the claim raised was at Rs 404.18 lacs as on March 31, 2008 has 

ceased to exist on November 19, 2008 and Knock Out intimation has since been received during the year. The Claim raised on 

the Company interalia including on account of daily range accrual as on March 31, 2009 estimated to be Rs 1636.53 lacs 

including interest has been provided for during the year. 

The matters are subjudice and the Company has been legally advised that these contracts are void ab- initio. 

2008-09 2007-08 

b) Outstanding derivative instruments 510.46 3993.25 

c) Foreign currency exposure outstanding as on March 31, 2009 whish has not been 

hedged by the derivative instruments: 

Loans – 9297.11 

Creditors 3203.02 1779.73 

Debtors 208.72 1069.01 

d) The amount of Exchange Gain/(Loss) of Foreign Currency Transaction adjusted to 362.40 310.07 

respictive heads of accounts of the Profit and Loss Account 





13) Prior Period item aggregating Rs 448.03 lacs (net) (previous year Rs Nil) has been booked under the head Miscellaneous Expenditure in 

the Profit & Loss Account. Pursuant to the Scheme of Amalgamation and Re-organization of Capital (the Scheme) under Section 391 to 

394 of the Companies Act, 1956, with effect from April 1, 2006 (the appointed date). Ace Glass Containers Limited (AGCL) had merged 

with the Company in the previous year. In terms of the Scheme, all fixed assets were recorded at the fair values as of the appointed date. 

While recording such assets in the books in the previous financial year, the value of certain assets were overstated / understated. These 

assets have now been restated in current year at their appropriate value by decreasing an amount of Rs 527.77 lacs in the value of fixed 

assets and prior period income adjustment by Rs 79.74 lacs in respect of discarded assets. 

14) a) The breakup of Deferred Tax Assets and Deferred Tax Liabilities is as given below: 

(Rs in lacs) 

2008-09 2007-08 

12) a) Electricity duty waiver benefit under State Incentive Schemes and subsidy received under 108.76 81.78 

State Incentive has been credited to Power and Fuel Account. 

b) Interest subsidy towards Interest on Term Loan receivable under State Investment 75.21 Nil 

Promotion Policy has been adjusted with Interest on Term Loan paid. 

c) Amount included in VAT Credit Inputs Account shown under Loans and Advances can 515.23 411.40 

be utilised only after repayment of corresponding amount of Sales Tax Deferred Loan. The 

balance amount of Rs 78.62 lacs (previous year Rs 201.84 lacs) is available for utilisation. 




Brought Forward Losses and unabsorbed depreciation 1956.04 (1959.99) (3.95) 

Expenses Allowable on Payment Basis 431.97 274.56 706.53 

Provision for Loss on Derivative transactions 106.71 623.06 729.77 

Provision for Doubtful Debts 347.69 (54.45) 293.24 

Total Deferred Tax Assets 2842.41 (1116.82) 1725.59 


Depreciation 4687.45 1245.38 5932.83 

Total Deferred Tax Liabilities 4687.45 1245.38 5932.83 

Net Deferred Tax Liabilities (1845.04) (2362.20) (4207.24) 

b) In terms of Scheme of Amalgamation under Section 391 to 394 of the Companies Act, 1956 as sanctioned by the Hon’ble High Court 

of Calcutta vide its Order dated April 7, 2008 and by Hon’ble High Court at Delhi vide its Order dated March 19, 2008, deferred tax 

liability of Rs 2369.18 lacs for the holding Company for the year has been adjusted to Share Premium Account. 

c) The Company has provided for Minimum Alternate Tax (MAT). The Company is entitled to MAT Credit and accordingly, based on 

evidences MAT Credit of Rs 355.00 lacs (previous year Rs 1367.20 lacs) has been recognised in these accounts. 

d) Provision for Income Tax has been made after considering the set off of unabsorbed depreciation and brought forward business loss 

of erstwhile Ace Glass Containers Limited merged with the Company with effect from April 1, 2006. 

15) The Company has incurred Rs 38.26 Lacs (Previous year Rs 7.91 lacs) on account of Research and Development expenses, which has been 

charged to Profit and Loss Account. 

16) As per Accounting Standard 15 “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are 

given below: 


Contribution to Defined Contribution Plan, recognised for the year are as under: 



Employer’s Contribution to Superannuation Fund 16.29 

The guidance note on implementing Accounting Standard (AS-15) (Revised 2005) on Employees Benefits issued by Accounting Standard 

Board (ASB) states that provident fund trustees set up by the employers which require the interest shortfall to be made by the employers 





needs to be treated as “Defined Benefit Plan”. According to the management, in consultation to the actuary, it is not practical or feasible 

to actuarially value the Provident liability in the absence of any guidance from Actuarial Society of India and also due to the fact that 


other related disclosures as required by the aforesaid AS – 15 read with ASB guidance. However, with regard to the position of the fund 

and confirmation of the Trustees of such fund, there is no shortfall as at year-end. 


The employees’ gratuity fund scheme managed by Birla Sun Life Insurance is a defined benefit plan. The present value of obligation is 


to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for 

leave encashment is recognised in the same manner as gratuity. 

I. Change in the present value of the Defined Benefit obligation representing reconciliation of opening and closing balances thereof 

are as follows: 

(Rs in lacs) 

Gratuity 



Liability at beginning of the year 710.07 726.88 203.47 


Interest Cost 50.76 57.78 17.06 

Actuarial (Gain) / Loss 61.81 (98.01) 31.03 

Benefits paid 66.54 (35.86) 2.07 

Liability at the end of the year 816.14 717.61 252.19 

II. 

Changes in the Fair value of plan assets representing reconciliation of opening and closing balances thereof are as follows: 

Gratuity 

(Funded) 







III. Expense recognized in the Income statement (Under the head “Contribution to provident and other funds” – Refer Schedule Q) 

Gratuity 




Interest Cost 50.76 57.78 17.06 

Expected Return on plan assets 54.80 Nil Nil 

Net Actuarial (Gain) / Loss to be recognized 115.33 (98.01) 31.03 

Expenses recognized in Profit and Loss account 171.34 26.59 75.54 

IV. Balance Sheet Reconciliation 

Gratuity 



Opening Net Liability 25.13 726.88 203.47 

Expenses as above 171.35 26.59 75.54 

Employers Contribution 45.87 35.86 26.81 

Amount Recognised in Balance Sheet 742.86 717.61 252.19 

V. Compensated Absences 

The actuarial liability of Compensated Absences (Unfunded) of accumulated privileged leave of the employees of the company as at 

March 31, 2009 is Rs. 252.19 lacs. 





VI. Principal Actuarial assumptions at the Balance Sheet Date 

Gratuity 



Mortality Table LICI 1994-1996 LICI 1994-1996 LICI 1994-1996 

Discount rate (per annum) 7.50 % 8.00 % 8.50 % / 7.50 % 

Expected rate of return on plan assets (per annum) 8.00 % 8.00 % 8.00 % 

Rate of escalation in salary (per annum) 5.00% 5.00 % 5.00 % 

The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and 

other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. 



The contributions expected to be made by the Company for the year 2009-10 is yet to be determined. 

17) The Company’s exclusive business is manufacturing and selling of Container Glass and as such in the opinion of the management this 

is only reportable segment, as per the Accounting Standard 17 on Segment Reporting, issued under Companies (Accounting Standards) 

Rules, 2006. 

Geographical Segment 

The following table shows the distribution of the Company’s Sales by Geographical market. 

Sales Revenue by Geographical Market 

(Rs in lacs) 




Total 145845.14 115000.57 

The following table shows the distribution of the Company’s Debtors by Geographical market. 

Sundry Debtors by Geographical Market 




Total 22723.03 16456.51 

18) The accounts of some of the customers are pending reconciliation / confirmation and Sales Tax deferment loan of Rs 1610.55 lacs is 

subject to confirmation and the same have been taken as per the balances appearing in the books. A provision of Rs 863.04 lacs (Previous 

year Rs 991.53 lacs) is carried in the books against doubtful debts and the management is of the opinion that the same is adequate and 

no further provision is required there against. 

19) In the opinion of the Management/Board of Directors, the “Current Assets and Loans and Advances” have a value on realisation in the 

ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. 

20) Disclosure of sundry creditors under current liabilities is based on the information available with the Company regarding the status of 


payment made to such suppliers. There is no overdue amount outstanding as at the balance sheet date. Based on above the relevant 

disclosures u/s 22 of the Act are as follows: 

1. Principal amount outstanding at the end of the year 68.34 

2. Interest amount due at the end of the year Nil 

3. Interest paid to suppliers Nil 

21) Profit or loss on sale of Raw Materials and Stores has been adjusted in consumption. 

22) Stores and Spare Parts consumption includes materials consumed for Repairs and Replacement. 

23) Inventories of Stores and Spare Parts include items, which are lying with the Company. A provision of Rs 679.51 lacs (including Rs 61.48 

lacs for the year) towards obsolescence is carried in the books and the management is of the opinion that the same is adequate and no 

further provision is required there against. 




24) Related Party Disclosures as identified by the management in accordance with the Accounting Standard – 18. 

A) Associate 

i) HNG Float Glass Limited 

B) Directors and Relatives 

i) Mr C. K. Somany – Key Management Personnel 

ii) Mr Sanjay Somany – Key Management Personnel 

iii) Mr Mukul Somany – Key Management Personnel 

iv) Mrs Amita Somany – Key Management Personnel 

v) Mr Bharat Somany – Relative of Key Management Personnel 

vi) Mr R. R. Soni – Key Management Personnel (with effect from October 27, 2008) 

C) Enterprises over which any person described in [B (i) to (v)] above is able to exercise significant influence and with whom the 

Company has transactions during the year. 

i) AMCL Machinery Limited 

ii) Ceramic Decorators Limited 

iii) Microwave Merchants Private Limited 

iv) Mould Equipment 

v) Noble Enclave and Towers Private Limited 

vi) Somany Foam Limited 

vii) Topaz Commerce Limited 

Disclosure of transactions between the Group and Related parties and status of outstanding balances as on March 31, 2009 

(Rs in lacs) 

Current Year 

Previous year 

Entities 

Entities 

over which 

over which 

Directors and 

Directors and 

Directors and their relatives Directors and their relatives 

Associate their relatives have influence Associate their relatives have influence 

24(i) 24(ii) 24(iii) 24(i) 24(ii) 24(iii) 

Income 

Sales of Goods 46.06 3.21 

Sales of Fixed Assets 0.42 1.05 

Rent Received 27.97 13.20 

Interest Received 400.46 47.27 

Services Given 0.47 265.14 

Expenses 

Purchases 2.51 14.56 25.59 

Purchase of Assets 1.33 

Services Taken 301.14 

Remuneration Paid 326.80 271.27 

Sitting Fees Paid 0.16 0.01 

Interest Paid 38.86 9.84 

Purchase of Investments 0.27 4.73 

Borrowings and Lendings 

Lendings 4500.00 

Borrowings 1501.70 64.00 

Guarantee/Corporate Guarantee: 

Given 3235.00 3235.00 

Outstandings 

Receivables* 3135.78 4528.88 

Payables 28.65 9.47 83.66 

* Companies in which directors are interested as member / director(s). Further, these loans were given by the erstwhile Ace Glass 

Containers Limited (AGCL) and none of the directors was director in AGCL and accordingly, as advised legally, the provisions of Section 

295 of the Companies Act, 1956 are not applicable with regard to these loans. 





E) Transactions for purchase of goods with Mould Equipments are covered under Section 297 of the Companies Act, 1956. Steps are 

being taken to obtain Central Government approval for such transactions. 

25) Segment Information 

a) Segments have been identified by the Company in line with the Accounting Standard on Segment Reporting (AS-17), taking into 

account the organisational structure as well as the different risk and returns of these segments. Details of these segments are as 

Glass Container - Manufacturing and selling of Glass Bottles and Tumblers. 

Glass Machines - Manufacturing and selling of Glass Forming Machines, Spares and providing related services. 

Minerals - Purchase, Processing and sale of Silica Sand and Feldspar. 

(Rs in lacs) 

Reportable Segments Glass Containers Glass Machines Minerals Eliminations Total 

2008-09 2007-08 2008- 09 2007-08 2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 

I REVENUE 

External Sales/services 131103.59 102129.69 1952.57 782.90 133056.16 102912.59 

Inter-segment sales/services 646.68 1008.03 262.66 237.06 (909.34) (1245.09) 

Total Revenue 131103.59 102129.69 2599.25 1790.93 262.66 237.06 133056.16 102912.59 

II RESULT 

Segment result 16026.14 13924.75 437.97 228.15 22.87 9.14 (257.02) (164.83) 16229.96 13997.21 

Other expenses net of 

unallocable income 387.56 (486.90) 

III 

Operating profit 15842.40 14484.11 

Interest expenses (4376.39) (2371.90) 

Interest income 505.32 79.74 

Profit from ordinary activities 11971.33 12191.95 

Net profit 11971.33 12191.95 

Income Tax-Current (153.48) (167.47) 

Income Tax-Deferred 6.99 2683.19 

Income Tax-Fringe Benefit Tax (51.64) (38.20) 

MAT Credit (955.00) 1367.57 

Profit after tax 10818.20 16037.04 

OTHER INFORMATION 

Segment assets 154783.55 132832.81 2782.39 2521.05 95.05 101.37 (1483.35) (1100.24) 156177.64 134354.99 

Unallocated corporate assets (130.20) (130.20) 19672.14 16388.36 

Total assets 175849.78 150743.35 

Segment liabilities 67726.54 54086.50 654.59 896.13 16.43 49.46 (842.63) (715.29) 67554.93 54316.80 

Unallocated corporate liabilities (65.00) (65.00) 12372.54 8436.62 

Total liabilities 79927.47 62753.42 

Capital expenditure 14446.01 20659.67 44.52 539.93 (262.54) (128.25) 14227.99 21071.35 

Depreciation 7698.06 7012.76 158.24 84.11 0.18 0.20 (5.52) (6.63) 7850.96 7090.44 





26) Adjustment made in Reserve and Surplus Account 

(Rs in lacs) 

2008-09 2007-08 

a) General Reserve Account 


Add: Transfer from Capital Reserve Nil 0.04 

Add: Transfer from Profit & Loss Account 7200.00 15000.00 

Less: Adjustment on account of transitional provision under AS-15 Nil 118.63 

Less: Loss on Ace Glass Containers Limited for the year ended March 31, 2007 Nil 3146.66 

Less: Carrying Cost of shares held in erstwhile Ace Glass Containers Limited pursuant 

to the Scheme of Amalgamation Nil 7.55 

Less : Merger expenses and others Nil 83.19 

Less: Minority Interest 0.47 0.56 

Total 7199.53 43034.67 

b) Revaluation Reserve Account 

Add: Adjustment during the year 2.78 8054.76 

Less: Transfer to Profit and Loss Account 306.68 281.21 

Less : Adjustment on account of sale/ discard of assets 1.47 60.75 

Total (305.37) 7712.80 

c) Debenture Redemption Reserve Account 

Add: Transfer from Profit & Loss Account 1250.00 Nil 

Total 1250.00 Nil 

d) Share Premium Account 


Less: Deferred Tax Liability 2369.18 Nil 

Total (2369.18) 12449.54 

27) Figures for previous year have been regrouped and/or rearranged wherever considered necessary. 

28) Schedule "A" to "L" and "S" form part of Consolidated Balance Sheet and Schedule "M" to "S" form part of Consolidated Profit and Loss 

Account. 






Kolkata 


June 20, 2009

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