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Incredible Industries Ltd.
BSE Code 538365
ISIN Demat INE452L01012
Book Value (Rs) 29.13
NSE Code INCREDIBLE
Dividend Yield % 0.00
Market Cap(Rs Mn) 2390.56
TTM PE(x) 30.95
TTM EPS(Rs) 1.65
Face Value (Rs) 10  
March 2015

BOARD'S REPORT

Dear Members,

Your Directors are pleased to present the 36th Annual Report together with the Audited Financial Statements of your Company for the financial year ended 31st March, 2015.

OPERATIONS

The key highlights of Company's performance during the year under review are:

• Revenue from operations decreased by 6.66% to Rs. 41,213.85 Lakhs due to fall in prices of finished goods as compared to last year.

• EBIDTA increased by 12.19% to Rs. 3,777.29 Lakhs due to synergy in procurement and effective marketing as compared to last year.

• Profit before Tax significantly increased by 162.60% to Rs. 1,578.65 Lakhs.

•Net Profit significantly increased by 147.49% to Rs. 1,076.55 Lakhs.

STATE OFTHE COMPANY'S AFFAIRS

The financial year 2014-15 has been a very successful and important year for the Company In spite of significant challenges faced in its operating sector due to fall in prices of finished products, spurred by significant imports from countries like China, Korea etc., your Company has been able to manage the situation at its end and achieved the desired results due to synergy in procurement and effective marketing and taking appropriate decision by the management of the Company keeping in mind the prevailing market trends and promptly implemented the decisions in order to grab the temporary opportunity created in the market.

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

There is no such material change and commitment affecting the financial position of your Company which have occurred between the end of the financial year to which the financial statements relate and the date of the report.

CHANGE(S) IN THE NATURE OF BUSINESS, IF ANY

There is no change in the nature of business implemented by the Company during the Financial Year 2014-15.

INDUSTRY SCENARIO AND OUTLOOK

Indian steel industry plays crucial role in development of nation and is considered as the backbone of civilization and the level of per capita consumption of steel is an important determinant of the socio-economic development of the country. The Indian steel industry is divided into primary and secondary sectors. The primary sector comprises a few large integrated steel providers producing billets, slabs and hot rolled coils. The secondary sector involves small units focused on the production of value-added products such as cold rolled coils, galvanized coils, angles, columns, beams.

Your company is one of the major key players among the various players in the rolling mill industry in the Durgapur region of West Bengal. It operates with a vision to become industry leader in zone which inspires its stakeholders and a well-defined business plan with planned strategy give hope to achieve its vision.

DIVIDEND AND RESERVES

In view of meeting the capital requirements of the Company through ploughing back of profit in the business, the Directors of your company are intend to retain the surplus Profits in the business itself. Therefore, no dividend is being recommended.

During the period under review, no amount was transferred to General Reserve.

SHARE CAPITAL

The Authorized Capital of the Company was increased from 1500,000,000/- (Rupees Fifty Crores only) to 1,000,000,000/- (Rupees One Hundred Crores only) during the financial year 2014-2015 approved by the members in the last Annual General Meeting held on 18th September, 2014.

As on 31st March, 2015, the issued, subscribed and paid up share capital of your Company stood at Rs.467,637,500/- (Rupees Forty Six Crores Seventy Six Lakhs Thirty Seven Thousand and Five Hundred Only) comprising of 46,763,750 (Four Crores Sixty Seven Lakhs Sixty Three Thousand and Seven Hundred and Fifty only) number of Equity shares of 110/- each fully paid up.

INDUSTRIAL RELATIONS

During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Information as required under the provisions of the Companies Act, 2013 and Rule 8(3) of the Companies (Accounts) Rules, 2014 details relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given in the Annexure-A, which is annexed hereto and forms part of Board's Report.

DETAILS OF BOARD MEETINGS

The Board meets at regular intervals to discuss and decide on Company / business policies and strategies apart from other Board business. However, in case of a special and urgent business need, the Board's approval is taken by passing resolutions through circulation, as permitted by law, which are confirmed in the subsequent Board meeting

COMMITTEES OF BOARD

During the year, in accordance with the Companies Act, 2013, the Board re-constituted some of its Committees and also formed a Corporate Social Responsibility Committee and Management and Finance Committee. There are currently five Committees of the Board, as follows:

Audit Committee

Nomination and Remuneration Committee

Corporate Social Responsibility Committee

Stakeholders' Relationship Committee

Management and Finance Committee

The details of composition of the Committees of Board ofDirectors are as under:-

a. Audit Committee

During the year under review, the Board of Directors of your Companyconstituted an Audit Committee in accordance with the provisions of Section 177 of the Companies Act, 2013 and Companies (Meetings of Board and its Powers) Rules, 2014. The Committee had met four times i.e. on 29th May 2014,13th August, 2014,13th November, 2014 and 12th February, 2015. The details of composition of the Audit Committee are as under

Vigil Mechanism / Whistle Blower Policy

In compliance with provisions of Section 177(9) of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Company has framed a Vigil Mechanism / Whistle Blower Policy to deal with unethical behaviour, actual or suspected fraud or violation of the Company's Code of Conduct or Ethics Policy, if any The Vigil Mechanism / Whistle Blower Policy has also been uploaded on the website of the Company.

During the year under review, the Board of Directors of your Company constituted a Nomination and Remuneration Committee in accordance with the provisions of Section 178 of the Companies Act, 2013 and Companies (Meetings of Board and its Powers) Rules, 2014. The Committee had met two times i.e. on 29th May, 2014 and 12th February, 2015. The details of composition of the Nomination & Remuneration Committee are as under:-

Corporate Social Responsibility Committee

The CSR philosophy of your Company is embedded in its commitment to all stakeholders-consumers, employees, environment and society while your Company's approach extends both to External community as well as to your Company's large and diverse internal employee base & their families. The Committee had approved the CSR policy and the Budget. The CSR policy is uploaded on Company's website. Further, the Report on CSR Activities/ Initiatives is enclosed as Annexure - B.

d. Stakeholders' Relationship Committee

In compliance with the provisions of Section 178(5) of the Companies Act, 2013 and clause 49 of the Listing Agreement, the Board has renamed the existing "Shareholders' / Investors' Grievance Committee" as " Stakeholders' Relationship Committee".

DIRECTORS' RESPONSIBILITY STATEMENT

As required by Section 134(3)(c) of the Companies Act, 2013, your Directors state that

(i) In the preparation of the annual accounts for the financial year ended March 31st, 2015, the applicable accounting standards read with requirements set out under Schedule III to the Act, have been followed and there are no material departures from the same

(ii) The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent except as otherwise stated in the Notes to Financial Statements so as to give a true and fair view of the state of affairs of the Company as at March 31st, 2015 and of the profit of the Company for the year ended on that date;

(iii) The Directors had 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;

(iv) The Directors had prepared the annual accounts on a'going concern' basis;

(v) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are being operated effectively; and

(vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and being operated effectively

BOARD INDEPENDENCE

Our definition of 'Independence' of Directors is derived from Clause 49 of the Listing Agreement with Stock Exchanges and Section 149(6) of the Companies Act, 2013. Based on the confirmation / disclosures received from the Directors and on evaluation of the relationships disclosed, the following Non-Executive Directors are independent in terms of Clause 49 of the Listing Agreement and Section 149(6) of the Companies Act, 2013 :-

a) Shri Asit Baran Dasgupta (DIN: 02476594)

b) Shri Shyam Bahadur Singh (DIN: 01982407)

c) Smt. Archana Gupta Sha (DIN: 07089290)

Pursuant to the provisions of Section 149 of the Companies Act, 2013 (Act) read with Companies (Appointment and Qualification of Directors) Rules, 2014, Clause 49 of the Listing Agreement and your Company's Articles of Association Shri Ashok Bector, (DIN: 00582126) Independent Director of the Company resigned and Smt. Archana Gupta Sha (DIN: 07089290) had been appointed as Additional Woman Independent Director of the Company with effect from 12th February, 2015

Shri Asit Baran Dasgupta (DIN: 02476594), Shri Shyam Bahadur Singh (DIN: 01982407) and Smt. Archana Gupta Sha (DIN: 07089290) have furnished their individual declaration on 1st April, 2015 pursuant to Section 149(7) of the Companies Act, 2013 confirming their status as Independent Directors pursuant to provisions of Section 149(6) of the Companies Act, 2013.

The other Board of Directors of your Company comprises Shri Mohan Lal Agarwal (DIN: 01047906), Director (Non-Executive), Shri Mahesh Kumar Agarwal (DIN: 00507690), Director & Chairman (Non- Executive), Shri Jugal Kishore Agarwal (DIN: 00227460) Managing Director (Executive).

In accordance with the provisions of Section 152 of the Act, the Rules prescribed thereunder and your Company's Articles of Association, Shri Mohan Lal Agarwal (DIN: 01047906) retires by rotation at the ensuing AGM and being eligible, offers himself for re-appointment. The Board of Directors recommends the re-appointment of Shri Mohan Lal Agarwal (DIN: 01047906) at the ensuing ThirtySixth Annual General Meeting.

KEY MANAGERIAL PERSONNEL(KMPs)

During the year under review, Shri Jugal Kishore Agarwal, (DIN: 00227460) Managing Director, Shri Bikash Roychowdhury, Chief Financial Officer and Shri Bharat Agarwal, Company Secretary of the Company were nominated as the Whole-time Key Managerial Personnel (KMPs) of the Company.

The members had also re-appointed Shri Jugal Kishore Agarwal (DIN: 00227460) as the Managing Director of the Company in the last Annual General Meeting held on 18th September, 2014 for a period of three (3) years w.e.f. 30th November, 2014.

COMPANY'S POLICY ON DIRECTOR'S APPOINTMENT AND REMUNERATION

Pursuant to provisions of Section 178 of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board of Directors of the Company based on the recommendation of the Nomination and Remuneration Committee, has formulated a Remuneration Policy.

The Remuneration Policy of the Company, inter alia, includes the aims and objectives, principles of remuneration, guidelines for remuneration to Executive Directors and Non-Executive Directors, fixed and variable components in the remuneration package, criteria for identification of the Board Members and appointment of senior management.

The criteria for identification of the Board Members including that for determining qualification, positive attributes, independence etc. are summarily given hereunder:

• The Board member shall possess appropriate skills, qualification, characteristics and experience. The objective is to have a Board with diverse background and experience in business, government, academics, technology, human resources, social responsibilities, finance, law etc. and in such other areas as may be considered relevant or desirable to conduct the Company's business in appropriate manner.

• Independent Director shall be a person of integrity, expertise and experience; and / or someone who the Committee / Board believes could contribute to the growth / philosophy / strategy of the Company.

• In evaluating the suitability of individual Board Members, the Committee takes into account many factors, including general understanding of the Company's business dynamics, global business, social perspective, educational and professional background and personal achievement.

• Director should possess high level of personal and professional ethics, integrity and values. He should be able to balance the legitimate interests and concerns of all the Company's stakeholders while arriving at decisions, rather than advancing the interest of a particular constituency.

• Director must be willing to devote sufficient time and energy in carrying out his/her duties and responsibilities effectively. He must have the aptitude to critically evaluate management's working as a part of a team in an environment of collegiality and trust.

• The Committee evaluates each individual with the objective of having a group that best enables the success of the Company's business and achieves its objectives.

PARTICULARS OF LOANS, GUARANTEE AND INVESTMENTS

Particulars of loans given, investments made, guarantees given under the provisions of Section 186 read with Rule 11 of the Companies (Meetings of Board and its Powers) Rules, 2014 are provided in the notes to the Financial Statements.

RISK MANAGEMENT

Risk management is the process of identification, assessment and prioritization of risks followed by coordinated efforts to minimize, monitor and mitigate / control the probability and / or impact of unfortunate events or to maximize the realization of opportunities.

Management of risk remains an integral part of your Company's operations and it enables your Company to maintain high standards of asset quality at a time of rapid growth of its lending business. The objective of risk management is to balance the trade-off between risk and return and ensure optimal risk-adjusted return on capital. It entails independent identification, measurement and management of risks across the businesses of your Company. Risk is managed through a framework of policies and principles approved by the Board of Directors supported by an independent risk function which ensures that your Company operates within a pre-defined risk appetite. The risk management function strives to proactively anticipate vulnerabilities at the transaction as well as at the portfolio level, through quantitative or qualitative examination of the embedded risks.

Your Company manages, monitors and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives. Your Company's management systems, organizational structures, processes, standards, code of conduct and behaviors govern how the Group conducts the business of the Company and manages associated risks.

CORPORATE SOCIAL RESPONSIBILITY

In lines with the provisions of Section 135 of the Companies Act, 2013, the Company has framed its Corporate Social Responsibility (CSR) Policy for the development and benefit of the weaker section of the society and the same is approved by the CSR Committee and the Board of Directors of the Company The CSR Policy of the Company provides a road map for its CSR activities. The purpose of CSR Policy is to devise an appropriate strategy and focus on its CSR initiatives and lay down the broad principles on the basis of which the Company will fulfill its CSR objectives. As per the said policy, the Company follows the strategy of discharging its CSR responsibilities related to social service through various trusts / societies in addition to its own initiatives and donations made to other non-government organizations.

The CSR Policy has been uploaded on the Company's website and may be accessed at the link <http://www.adhunikindustries.com/images/31433946951.pdf>.

Pursuant to the requirements under Section 135 of the Companies Act, 2013 and Rules made there under a report on CSR activities and initiatives taken during the year in the prescribed format is given in Annexure-B, which is annexed hereto and forms part of the Board's Report.

The Company has been playing a pro-active role in the socio economic growth and has contributed to all spheres ranging from health, education, rural infrastructure development, hygiene and empowerment of women, environment conservation etc. The Company takes part in some of the social programs in India, touching the lives of hundreds of people positively by supporting social programs.

The major CSR activities taken up by the Company are as under-

a) Health care activities

The Company had organized various social development activities in the area of healthcare by way of providing free medical check-up and administer free treatment and medicines for the needy people. Free health camps are organized in the rural areas to provide quality healthcare services to the local population of the area surrounding the Company's steel plant at Durgapur.

b) Education

The Company provide financial support to children for education in schools. School dresses, books, stationery and other materials are provided free of cost to the many needy students on regular basis in order to support their education. The Company also provides vocational training to workers of the backward area on a regular basis. Apart from that, the Company also organized various small primary education camps to provide basic education to the children of weaker section of society. The Company also contributed for construction of school building in Kolkata by providing donation in the corpus created by M/s. Hariyana Nagrik Sangh for the purpose.

The Company undertakes other social welfare activities and rural development projects including providing drinking water, food, health drinks, garments, tarpaulin for their home and other things of daily needs to the needy people of the backward and rural areas.

DETAILS RELATING TO REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND EMPLOYEES

The names and other particulars of the Directors/Key Managerial Personnel (KMPs) / Employees of your Company as required under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are set out in the Annexure - C to the Board's Report and form part of this report.

BOARD EVALUATION

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

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

The performance of the Committees was evaluated by the board after seeking inputs from the Committee members on the basis of the criteria such as the composition of Committees, effectiveness of Committee meetings, etc. The criteria for evaluation of Directors inter alia includes factors such as engagement, strategic planning and vision, team spirit and consensus building, effective leadership, domain knowledge, management qualities, team work abilities, achievements, understanding and awareness, integrity, ethics, value and openness.

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

In a separate meeting of independent Directors, held on 12th February, 2015, performance of non-independent Directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views of executive Directors and Non-Executive Directors. The same was discussed in the Board meeting that followed the meeting of the independent Directors, at which the performance of the Board, its Committees and individual Directors were also discussed.

SUBSIDIARY, JOINT VENTURES AND ASSOCIATES COMPANIES

The Company does not have any subsidiaries, joint ventures and associate companies. So, the disclosure required is not applicable to the Company.

DEPOSITS

Your Company did not accept any deposits within the meaning of the Companies Act, 2013 and the Rules made there under.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BYTHE REGULATORS, COURTS ANDTRIBUNALS

No significant and material order has been passed by the regulators, courts, tribunals impacting the going concern status and Company's operation in future.

INTERNAL CONTROL AND AUDIT

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined in the Internal Audit Manual. To maintain its objectivity and independence, the Internal Auditor reports to the Chairman of the Audit Committee of the Board & to the Chairman & Managing Director.

The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company its compliance with operating systems, accounting procedures and policies at all locations of the Company Based on the report of Internal Audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.

INTERNAL FINANCIAL CONTROL SYSTEM

The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.

BUSINESS RESPONSIBILITY REPORT

SEBI, vide its circular CIR/CFD/DIL/8/2012 dated August 13,2012, mandated inclusion of the Business Responsibility Report (BRR) as part of Annual Report for Listed Companies.

At AIL, corporate sustainability is demonstrated through:

(a) Fair, transparent and ethical governance,

(b) Engagement with marginalized and vulnerable communities,

(c) Adherence to and respect for all human rights,

(d) Offering specialized services and solutions to meet distinct needs of its clients,

(e) Reduction of impact of its operations on the environment and

(f) Promotion of employee well-being and safety.

AIL mainly operates in Eastern India . Its units of operation are encouraged to identify target beneficiaries in line with their local needs. The objective is to drive sustainability through various initiatives across the units of operation, supply chain, community and customers. While volunteering by employees is encouraged, the Company also utilizes its own expertise to address needs of the community and the environment.

AUDITORS AND AUDITORS' REPORT

STATUTORYAUDITORS

M/s. Sudhir Kumar Jain & Associates, Chartered Accountants, the statutory auditors of the Company hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. They have confirmed their eligibility to the effect that their re-appointment, if made, will be within the prescribed limits under the Act and that they are not disqualified for re-appointment.

The Notes on financial statement referred to in the Auditors' Report are self-explanatory and do not call for any further comments. The Auditors' Report does not contain any qualification, reservation or adverse remark.

COST AUDITORS

In terms of the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, your Company has appointed M/s. Dipak Lal & Associates, Cost Accountants, a Cost Audit Firm, as Cost Auditor of the Company w.e.f. 1st April, 2015 to 31st March, 2016 to carry out audit of cost records of the Company .The remuneration proposed to be paid to them in Financial Year 2015-16 requires ratification of the shareholders of the Company. n view of this, your ratification for payment of remuneration to Cost Auditors is being sought at the ensuing Annual General Meeting.

SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. M R & Associates, Company Secretary, to conduct Secretarial Audit for the financial year 2014-15. The Secretarial Audit Report for the financial year ended March 31st, 2015 is annexed herewith marked as Annexure - D to this Report. In this connection, with the auditor observation in this report, it is mentioned that the Company had already applied to MCA for removal of cases u/s 162(1) and 220 (3) of the Companies Act, 1956 quashed/dismissed by the Hon'ble Courts in its records

The Board has also appointed M/s.M R Associates, as Secretarial Auditor to conduct Secretarial Audit of the Company for the Financial Year 2015-16.

RELATED PARTYTRANSACTIONS

According to the provisions of Section 188 read with Section 2(76) of the Companies Act, 2013, all transactions entered with Related Parties during the financial year 2014-15 were on arm's length basis and were in the ordinary course of business.

All Related Party Transactions are placed before the Audit Committee for approval. Prior omnibus approval of Audit Committee is obtained for the transactions which are of a foreseen and repetitive nature. The transactions entered into pursuant to omnibus approval so granted, along with a statement giving details of all related party transactions, are placed before the Audit Committee.

The Policy on Related Party Transactions as approved by the Board is uploaded on the Company's website and may be accessed at the link <http://www.adhunikindustries.com/download/_1421230517.pdf>

Your Directors draw attention of the members to Note 28 to the Notes to financial statement which sets out related party disclosures.

As there are no materially significant related party transactions during the year under review entered into by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large, so the disclosure of Information on transactions with related parties pursuant to Section 134(3) (h) of the Act read with rule 8(2) of the Companies (Accounts) Rules, 2014 is not required.

CODEOFCONDUCT

The Board has laid down a Code of Conduct for all Board members and senior management of the Company. Board members and senior management personnel have affirmed compliance with the Code for the financial year 2014-15. A certificate from the CEO / Managing Director is annexed in this regard.

CODE FOR PREVENTION OF INSIDER TRADING PRACTICES

Pursuant to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, a comprehensive code for prevention of insider trading is in place. The objective of the code is to prevent purchase and /or sale of shares of the Company by insider on the basis of unpublished price sensitive information.

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Company's shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code.

All Board Directors and the designated employees have confirmed compliance with the Code TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the provisions of the Companies Act, 2013, the Company is not required to transfer any amount to Investor Protection and Education Fund as the Company is declaring dividends since financial year 2007-08 and as such there is no amount of dividend which was due and payable, remained unclaimed and unpaid for a period of seven years.

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

Your Company in its endeavor to provide a safe and healthy work environment for all its employees has developed a policy to ensure zero tolerance towards verbal, physical, psychological conduct of a sexual nature by any employee or stakeholder that directly or indirectly harasses, disrupts or interferes with another's work performance or creates an intimidating, offensive or hostile environment so that each employee can realize his / her maximum potential.

PARIICULARS OF EMPLOYEES AND RELAIED DISCLOSURES

In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, none of the employees is drawing remuneration in excess of the limits set out in the said Rules. Therefore no disclosure is required in this context.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual return in form MGT-9 as required under Section 92 of the Companies Act, 2013, is marked as Annexure - E which is annexed hereto and forms part of the Board's Report.

MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT

Management's Discussion and Analysis Report for the year under review, as stipulated under clause 49 of the Listing Agreement with the Stock Exchange, is presented in a separate section forming part of the Annual Report.

The Company is committed to maintain the highest standard of Corporate Governance and adhere to the Corporate Governance requirements set out by SEBI. The report on Corporate Governance as stipulated under the Listing Agreement forms an integral part of this Report. The requisite certificate from the Auditors of the Company confirming compliance with the conditions of corporate governance is annexed to the Corporate Governance Report which is a part of Annual Report.

CAUTIONARY STATEMENT

Statements in this Report, particularly those which relate to Management Discussion & Analysis, describing the Company's objectives, projections, estimates, expectations or predictions may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Company's operations include global and domestic demand-supply conditions, finished goods prices, raw materials and fuels cost and availability, transportation costs, changes in Government regulations and tax structure, economic developments within India and other factors such as litigation and industrial relations.

APPRECIATION

Your Directors would take this opportunity to express their sincere appreciation for the assistance and cooperation received from the Company's customers, suppliers, government authorities, bankers, investors, financial institutions and shareholders during the period under review. Your Directors also sincerely acknowledge the outstanding support and services of the workers, staff and executives of the Company which together contributed towards the efficient operation and management of the Company.

For and on behalf of the Board

Mahesh Kumar Agarwal   

Chairman

(DIN:00507690)

Jugal Kishore Agarwal

Managing Director

 (DIN:00227460!

 Date: 29.05.2015

Registered office

14NetajiSubhasRoad, Kolkata-700001