gujarat borosil ltd.gujaratborosil.com/1. schedule 1 to 19 -(b sheet)-ssn-3.pdfgujarat borosil ltd....

GUJARAT BOROSIL LTD.

BALANCE SHEET AS AT 31ST MARCH,2004 Rs in thousands

As At As At

31st March, 31st March,

Schedule 2004 2003

SOURCES OF FUNDS

Shareholders' Funds Share Capital 1 341038 341038

Reserves & Surplus 2 284023 233629

625061 574667

Loan Funds

Secured Loans 3-a 110353 229340

Unsecured Loans 3-b 30000 15000

140353 244340

Total 765414 819007

APPLICATION OF FUNDS

Fixed Assets

Gross Block 4 898217 895194

Less : Depreciation 424958 380004

Net Block 473259 515190

Capital Work in Progress 715 473974 688 515878

Investments 5 1 1

Current Assets, Loans and Advances

Inventories 6 69980 68881

Sundry Debtors 7 99580 134469

Cash and Bank Balances 8 87263 68515

Loans & Advances 9 73002 70101

329825 341966

Less: Current Liabilities & Provisions10

Current Liabilities 32668 33507

Provisions 5718 6653

38386 40160

Net Current Assets 291439 301806

Miscellaneous expenditure (to the 11

extent not written off or adjusted) 0 1322

Total 765414 819007

Accounting Policies and Notes to 20

the Accounts

Schedules referred to above form an For and on behalf of the Board of Directors

integral part of the Accounts.

As per our report annexed B.L. Kherukafor Singhi & Company Chairman

Chartered Accountants

(Praveen Kr. Singhi)

Partner

Mumbai. Arun Kumar Ashok JainDated: 28 th June, 2004 Whole-time DirectorCompany Secretary


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2004Rs in thousands

For The For The

Year Ended Year Ended


Schedule 2004 2003

INCOME

Sales (Net of Claims / Discounts) 756135 740236

Less: Excise duty 80007 71984

Net Sales 676128 668252

Other Income 12 9041 9634

Increase / (Decrease) in Stock 13 838 (13930)

686007 663956

EXPENDITURE

Raw Materials Consumed 14 177848 165778

Payments to and Provision for Employees 15 58954 52299

Manufacturing and Other Expenses 16 215878 210969

Administrative and Other Expenses 17 36650 39944

Selling and Distribution Expenses 18 104945 113541

594275 582531

PROFIT BEFORE INTEREST & DEPRECIATION 91732 81425

Less : Interest 19 3643 3372

: Depreciation 45385 45320

PROFIT / (LOSS ) FOR THE YEAR 42704 32733

Profit on sale of Investments 0 149

42704 32882

Add : Previous year Income/ expenses (Net) (10) 62

PROFIT / (LOSS) 42694 32944

Add : Balance brought forward from last year 32944 (1178843)

TOTAL 75638 (1145899)

Effect of BIFR Order issued on 23.12.2002

and settlement of loan 7700 1370784

TRANSFERRED TO CAPITAL RESERVE 7700 191941

CARRIED TO THE BALANCE SHEET 75638 32944

Earning per share ( Basic)-Refer note no.B-14,Sch.20 0.63 0.48

Accounting Policies and Notes to 20

the Accounts

Schedules referred to above form an For and on behalf of the Board of Directors

integral part of the Accounts.As per our report annexed B.L. Kheruka

for SINGHI & COMPANY Chairman

Chartered Accountants


Partner

Mumbai. Arun Kumar Ashok JainDated: 28th June, 2004 Whole-time DirectorCompany Secretary


SCHEDULES TO THE BALANCE SHEET AS AT 31ST MARCH 2004

Rs in thousands

As At As At


2004 2003

SCHEDULE - 1 : SHARE CAPITAL

AUTHORISED

9,20,00,000 Equity shares of Rs 5/-each *

( Previous year same ) 460000 460000

Unclassified Share Capital 40000 40000

500000 500000

ISSUED, SUBSCRIBED & PAID UP

6,82,07,500 Equity shares of Rs. 5/- each

(Previous year same ) 341038 343620

Less : Forefiture of shares 0 -945

Less : Capital reduction as per BIFR order 0 -171337

Add : New capital issued 0 169700

341038 341038

341038 341038

* Face value reduced to Rs 5/-as per approval of shareholders

in the EGM held on 14th February,2003.

SCHEDULE - 2 : RESERVES & SURPLUS

SHARE PREMIUM ACCOUNT

As per last Account 5771 5771

CAPITAL RESERVE - SUBSIDY


CAPITAL RESERVE

Credited on forfeiture of shares - unpaid

allotment money 473 473

Surplus arising on giving effect to BIFR order


Amount transferred during the year 7700 199641 191941 191941

PROFIT & LOSS ACCOUNT 75638 32944

284023 233629


SCHEDULES TO THE BALANCE SHEET AS AT 31ST MARCH 2004

Rs in thousandsAs At As at


2004 2003

SCHEDULE - 3-a : SECURED LOANS

TERM LOANS

Rupee Loan From Financial Institutions 70374 169752

Rupee Loan From Banks 15009 15009

Foreign Currency Loan from Financial Institutions 0

Funded Interest - Banks 1295 1295

INTEREST ACCRUED & DUE 161 284

110353 229340

Notes:

i) The Term Loans from Financial Institutions / Banks and Funded Interest from Banks are secured by way of

first mortgage of entire immovable properties of the Company both present and future , ranking pari passu

with the charges created or to be created by the Company on the said fixed assets, and by way of hypothecation

of all the Company's movables ( save and except book debts ) present and future , subject to prior charges

created/to be created in favour of Company's Bankers for working capital facilities and further quaranteed by

Borosil Glass Works Ltd.

ii) Working Capital Facility from Banks is secured by Hypothecation on all stocks and book debts of the

Company and additionally secured by way of a second charge on Fixed Assets of the Company. The said

facilities are further secured by guarantee from Borosil Glass Works Ltd. and personal guarantee of two Directors.

iii) As per the BIFR Order the balance Term Loans of Financial institutions are payable in half yearly instalments starting

from the 12th month to 36 th month from the order. The loans / funded interest of Banks will be repaid in quarterly

instalments from 1.4.2006 to 31.3.2010. Amount due within one year Rs 42156 thousands. The Company has made

offer to prepay the entire amount.

As At As At


2004 2003

SCHEDULE - 3-b : UNSECURED LOANS

SHORT TERM

Borosil Glass Works Ltd. 30000 15000

30000 15000

G U J AR AT BO R O SIL LT D .

SCH EDULE - 4 : FIX ED ASS ETS Rs. in thousands

<--------------GR OSS BLOCK----------------> <----------------DEPREC IATION---------------------> <----NET BLOCK-->

PAR TICULAR S As Addition Deduction Tota l As Provided On Tota l As As

at during during upto at for the Adjustm ents upto at at

31.3 .2003 the year the year 31.3 .2004 31.3 .2003 year / Sales 31.3 .2004 31.3 .2004 31.3 .2003

Land (Free ho ld) & Site Developm ent 6217 6217 0 0 6217 6217

Build ing 94218 161 94379 21165 2376 23541 70838 73053

P lan t & Mach inery 776765 1175 777940 348367 41657 390024 387916 428398

Furn iture,Fixtu res & Fittings 5954 1081 7035 3512 431 3943 3092 2442

Moto r Vehicles 6348 1173 813 6708 1589 703 431 1861 4847 4759

Com puters 5692 246 5938 5371 218 5589 349 321

Tota l 895194 3836 813 898217 380004 45385 431 424958 473259 515190

Capital w ork in progress 715 688

Tota l 895194 3836 813 898217 380004 45385 431 424958 473974 515878

Previous Year 890757 4536 99 895194 334730 45320 46 380004 515878 556027

Note : 1. In addition to the above a ssets , the Company has installed Plant & Machinery worth Rs. 8383 0 thousands at its P lant which are take n on hire f rom

Boro sil G lass W orks Ltd.

GUJARAT BOROSIL LTD.Rs in thousands

As At As At


2004 2003

SCHEDULE - 5 : INVESTMENTS (AT COST)

Other than Trade , Unquoted

In

Shares of Swapan Properties Ltd. 1 1

2300 Equity Shares of Rs.100/- each fully paid ( Pr. Yr. same )

1 1

SCHEDULE - 6 : INVENTORIES

(As Valued & Certified by the Management)

Finished Goods *

(At Cost or net realisable value whichever is lower) 16175 15514

Work in Progress (At Cost) 6588 6411

Raw Materials (At Cost) ** 16857 13602

Less: Provision for Slow moving items 400 16457 285 13317

Glass Cullets ( including own generated)

(At Cost or net realisable value whichever is lower) 3112 3249

Stores & Spare parts (At Cost) *** 29049 31791

Less: Provision for Slow moving Stores & Spares 1401 27648 1401 30390

69980 68881

* Includes in transit Rs 1175 thousands ( Pr. Yr. 2655 thousands)

** Includes in transit Rs 853 thousands ( Pr. Yr. Nil )

*** Includes in transit Rs 602 thousands ( Pr. Yr. 755 thousands)

SCHEDULE - 7 : SUNDRY DEBTORS

(Unsecured , Considered Good )

More than 6 Months * 2010 3697

Less: Provision made for doubtful debts 1831 2080

179 1617

Others 99401 132852

99580 134469

*Including under litigation Rs. 1645 thousands.(Pr.Yr.Rs. 2012 thousands)

SCHEDULE - 8 : CASH AND BANK BALANCES

Cash In Hand (As certified) 635 435

Cheques in Hand 23790 94

Balance with Scheduled Banks-In Current Account 3114 16840

-In Share Refund A/c 0

87263 68515

Boro sil G lass W orks Ltd.

GUJARAT BOROSIL LTD.Rs in thousands

As At As At


2004 2003

SCHEDULE - 9 : LOANS & ADVANCES

(Unsecured, Considered Good)

Loan to a Body corporate

(Including Interest Rs. 685 thousands, Pr.Yr - 611 thousands) 1231 1157

Advances recoverable in Cash or in kind

or for value to be received

Considered Doubtful 510 510

Less: Provision made 510 510

0 0

Others 4478 4478 3242 3242

Advances for furnace repair work 9376 9581

Export benefits & other claims receivable 3406 5151

Prepaid expenses 2058 2352

Deposits with Govt. & Others 4913 5031

Balance with Excise Authorities 1806 1279

Excise duty paid under protest ( refer note B -4 e, Schedule 20) 39642 37142

Tax deducted at source ( in appeal Rs 5166 thousands) 6092 5166

73002 70101

SCHEDULE-10:CURRENT LIABILITIES & PROVISIONS

CURRENT LIABILITIES

Sundry Creditors ( Including Acceptances ) 23471 24323

For Excise duty on Stock 1477 1952

Other liabilities 4243 4102

Payable to Borosil Glass Works Ltd. 0 863

Advance from Customers 3477 2267

32668 33507

PROVISIONS

For Gratuity 4322 4855

For Leave Encashment 1396 1798

5718 6653

38386 40160

SCHEDULE - 11 : MISCELLANEOUS EXPENDITURE

(to the extent not written off or adjusted)

Share Issue Expenses 0 1164

Preliminary Expenses 0 85

Deferred Revenue Expenses 0 73

0 1322


SCHEDULES ATTACHED TO AND FORMING PART OF

THE PROFIT AND LOSS ACCOUNT

Rs in thousandsFor The For The



2004 2003

SCHEDULE - 12 : OTHER INCOME

Rent 18 18

Interest (Gross)

( Tax deducted at source Rs. 26 thousands) 4480 7806

Miscellaneous Sales 842 478

Unclaimed balances/ Excess provisions written back 3701 1318

Others 0 14

9041 9634

SCHEDULE - 13:INCREASE (+) /DECREASE (-) IN STOCK

CLOSING STOCK

Finished Goods 16175 15514

Work in Progress 6588 6411

Total 22763 21925

OPENING STOCK

Finished Goods 15514 29293

Work in Progress 6411 6562

Total 21925 35855

838 -13930

SCHEDULE - 14 : RAW MATERIALS CONSUMED

Opening Stock(including own cullet) 16566 15542

Add: Purchases 180851 166802

197417 182344

Deduct: Closing Stock 19569 16566

Consumption * 177848 165778

* Incl Provision of Rs 115 thousands ( Pr. Yr Rs 285 thousands) on non moving items.

SCHEDULE - 15 : PAYMENTS TO AND PROVISION FOR EMPLOYEES

Salaries,Wages , Bonus etc. 49236 44614

Contribution to Provident , Gratuity Funds etc. 4494 2773

Staff Welfare Expenses 5224 4912

58954 52299

GUJARAT BOROSIL LTD.Rs in thousands Rs in thousands

For The For The



SCHEDULE-16:MANUFACTURING AND OTHER EXPENSES 2004 2003

Stores Consumed - Local * 14433 14400

Stores Consumed - Imported * 649 836

Packing Material Consumed 69558 68786

Power and Fuel 112705 110241

Repairs & Maintenance

- Plant & Machinery 3718 1771

- Buildings 988 750

- Other Assets 691 935

Machinery Hire Charges 9714 9731

Insurance 3422 3519

215878 210969

* Includes Provision of Rs Nil ( Pr. Yr Rs 91 thousands) on non moving spares.

SCHEDULE-17: ADMINISTRATIVE AND OTHER EXPENSES

Rent 2035 1505

Rates & Taxes 84 81

Legal & Professional Charges 2197 2521

Director's Fees 113 92

Travelling and Conveyance Expenses 10430 12364

(Incl. Directors' Travelling Rs. 3249 thousands, Pr. Yr. Rs 4814 thousands)

Motor Car Expenses 1724 1726

Vehicle Hire Charges 4303 4476

Printing & Stationery 1023 1296

Postage, Telegrams,Telephones & Telex 2587 3203

Auditor's Remuneration-Audit Fees (Incl.Service tax Rs. 34 thousands) 459 378

-Certification Fees 127 99

- Travelling & Out of Pocket Expenses 61 40

Tax Audit Fees 32 32

Other Expenses 7490 6981

Exchange rate difference 1075 1119

Bank Charges 1274 1549

Provision made for doubtful debts / advances 0 1260

Unrecoverable Debt/Balances written off 314 213

Deferred Revenue Expenditure written off 73 73

Preliminary Expenses written off 85 63

Share Issue Expenses written off 1164 873

36650 39944


Rs in thousands Rs in thousands

For The For The

2004 2003

SCHEDULE - 18 : SELLING AND DISTRIBUTION EXPENSES

Advertisement , Publicity & Sales promotion exps. 1156 994

Carriage Outward 94116 101932

Octroi 0 1183

Commission 2982 3847

Sales Tax / TOT 0 0

Cash Discount 6691 5585

104945 113541

G UJA RA T B O R OSI L LIM I T ED

S CHE DU LE 20 : SIGN IF IC AN T A CC OU N TING P OL IC IE S A ND N O TES TO TH E A CC O U NTS A ) A C C OUN TING PO LICIE S

1 . F ix ed ass e ts are rec orde d a t cos t o f acq uis itio n (N et o f M od va t) in cl us ive o f r e lat ed e xp e ns e s

th er e on tow ards put t ing th e as se ts in to us e . 2 . F ore ign Cu r re nc y A sse ts a n d l ia bil i tie s are co nv erte d at th e ra te p re v ail ing o n the l as t da y of

th e ac c o un ti n g year an d t ra ns a cti ons co mp le ted du rin g t h e ye ar ar e a c c o un ted for a t the t he n ru l ing r a te .

3 . D ep rec ia t ion on a l l t he f ix ed as s e ts h as be en c alc u la te d at th e S LM ra tes pre s crib ed in S ch ed ul e X IV o f

th e C o m p an ies Ac t , 1 95 6 as pe r n o t ifica tio n d ate d 1 6-1 2-1 993 and on a dj ust me nt s o n a cco un t o f fo re ign c urre n c y f lu ct ua tio n is b ein g cal cu lat ed o n re s id ua l l if e of re s p e cti ve fix ed a s s ets .

4 . In co m e an d E xp ens e s are ac co un ted fo r o n ac cru al ba sis ex cep t in tere st o n d el ayed p ay me nt s w hi ch i s

ac co un te d o n re ce ip t ba s is . 5 . In ves t me nt s are s tat ed a t c os t, di vid en d are a cc ou nte d fo r , wh en d ec la re d .

6 . In ven to ri es : ar e va lu ed a s u nd e r R aw M ate r ial s - A t C o s t O w n C u l let s - A t C o st or n et re ali sab le valu e w hic he ver is low er.

S t ores an d Sp are P a rt s - A t C o s t W o rk in P rogres s - A t C ost F i ni she d G o od s - A t C ost or net re a li sab le val ue wh ic he ver is lo we r.

7 . Mi s cel lan eo us e xp en ditu re has be en w ri tte n In No . of Y ea rs from o ff d ur ing th e yea r a s u nd er : Co m m er cia l Pr o du ctio n

a ) D efe rr e d R e ve n u e ex pe n d itu re

Er ect ion & C o m mi ssi on ing e xpe nse s on ass ets 1 0 tak en o n hi re . b ) P r e li mi ne ry ex pe ns e s . 1 0 c) S h are i ssu e e xp ens es . 1 0 8 . S a les are n et o f cla im s / r e tu rn s , d is c oun ts & b re ak age s . 9 . M od va t o n R a w M ate r ial s / S to res is c re d i ted to re s pe cti ve pu rcha s e a cco un t o n a cc ru al bas i s .

Ac c o rd in g ly , i n ven tory is va lu ed at n et o f M odv at b en efits .

1 0 . L iab i lity in r es p ect o f g rat uit y& lea ve en ca s h me nt to e mp loye es is ac tu aria lly a ss es s ed as at th e B al anc e

Sh ee t da te a nd the in cre me nta l l ia bi lity aris in g on s uc h va lua tio n is p rov ide d for .

11 . Int eres t a nd o th er cos ts in c onn ect ion wi th th e b orr owi ng of th e f un ds t o the e x te n t r e la t ed / att ri b ute d to th e

a cq u i si ti on / co ns truc tion o f qu al ify in g fi xed as sets read y fo r i ts in te nded us e a re cap i tal ised .

1 2 .C o ntin gent lia bi lit ie s a r e no t p rovi d e d fo r a n d ar e s e pa ra te ly d is c los ed b y w ay of no te i n the sc hed ul es .

B ) N O TES TO TH E ACC O U NTS 1 . T he C om pa ny b e ca m e a s i ck ind us trial co mp an y w ith in th e m ea ni ng o f S ect ion 3 (1 ) (0 ) o f the S ic k

In d u s tr ial C o m pa nie s ( S p ec ia l P rov is io n s ) A c t,19 85 (S IC A ). A M od if ied R eh abilita t io n S ch em e a pp rove d by B IF R vid e t hei r O rd er iss ue d on 23 rd De ce mb er, 20 02 prov id ing fo r c e r tai n rel ie fs an d

co nc es s io ns w a s i mp le m e n ted a nd e ff ect g ive n in th e a cc ou nts fo r 2 00 2-03 . Th e net wor th of C om pa n y

b e c a me p os i t ive as on 3 1st M a rc h, 2 00 3 a nd co ns equ en tly B IF R ha s p a s se d th ei r o rd er o n 2 0 th M ay,20 04

de cla r ing th at t he C om p an y i s n o lon ger a s ick indu s trial c om p any.

A s um of R s 77 00 tho us a nds h as be en cred it ed s e pa ra te ly in th e P rofi t & lo ss ac co un t b eing re m is sio n on pre pa ym en t o f lo an of one F ina nc ial In s tit u tion a nd th e s a me ha s b e e n tr a ns ferre d to a se p a rate C ap ita l

R e s erve as in the las t year .

2 . A s p er te rm s o f sa nc tio n of B IFR , a ) B a nk s w o uld h ave a ri g ht fo r rec o mp en se of sac rif ic es ba s ed o n rev ie w

o f op erati on s w it h p rio r a pproval o f B IF R ; an d b ) fi na ncia l In st it utio n s w ou ld h ave a rig ht to revok e th e s ch em e an d rei nsta te th e wr it e of fs w i th p r ior a p p rova l o f B IFR if th e C o mp an y a nd /or P ro m ote r s f a il to

co m ply w ith the ir re s pe cti ve o bli gati on s .

3 . a) In te r m s o f m an da to ry Ac co un tin g S ta n da rd ( A S -22 ) o n “A c co un t ing fo r T axe s on I n com e ’’ is s u ed by

T h e Ins ti tu t e o f C h arte red A cco un ta n ts o f Ind ia , th e C om p an y ha s work ed o u t De ferre d t ax A s se ts of

R s .182 59 th ous an ds as o n 3 1.0 3. 20 04 rel atin g to ca rr y fo r w ard o f u n a bs o rb ed dep r ec iat ion / bu si ne ss los s .

H o w e ve r , a s t here is no c erta in ty th at such a s se ts c an b e re al ised aga in st fut ure ta xab le p rofi ts i n vi ew of

th e vo la til e na ture o f Ind ustr y , t he d eferre d tax asse ts ha ve n o t b ee n r eco gni s ed in th e a cco unt s .

b ) N o p rovi s ion fo r t ax h as be en m ad e in vi ew of un ab so rbe d de prec iatio n . P rovis io ns o f M in im u m

Alte rna te T ax (M A T) do no t app ly as th e C om p a n y wa s re g is te re d with B IFR as a s ic k un it as o n 31st M arch , 2 00 4 u nd er the p rovi s ion s of S IC A .

4 . C on t inge nt l iab i li tie s no t p rovi de d f or :-

2 00 3-04 2 00 2-0 3

a) Le tters o f C red it o u tst and in g 3 65 0 3 66 1

b ) B il ls d isco u n te d w it h B a n ks - (S ince r ea lise d ) N i l 4 07 7

c ) C la im s agai nst t he C o m pany no t ac kn ow le dged a s deb t 11 61 94 6 d ) H o use Tax fro m 1 99 6 d em an ded b y Gr am Panch a y at , Bori d ra .

C o m pan y’s a p peal is p en d ing b e fo re Z i lla G ram Pan ch ayat , B h a ru ch . 2 24 19 6

e ) Ex cise m at ters re la t in g to v a lu a tio n in ap pea l

From D ec embe r 94 to 26 th Feb ru a ry , 9 6 and

O cto b er 99 to Ju ne 20 00 ) 1 92 75 192 75

Sho w -caus e no tice is sued b y excis e au th o ri ti es (fro m O ctob er 19 98 to Sep tem ber ,2 003 ) 3 01 20 N IL

Th e C o mpa ny is con f id en t th a t the d is pu te d d em and s w il l b e d ro pped in v iew

o f th e ju d gem en t o f C E G A T in its o w n case f o r the perio d D ece mbe r 94 t o F ebru ary ,199 6. Fu rth er , d isp u t ed am oun ts p a id und e r p ro te st f ro m 27 /2 /9 6

to 30 /9 / 99 am o un t ing to R s. 371 42 tho us an ds h ave b e en s ho wn as adv a n ces

recove rab le a lo ngw ith R s 2 500 tho u s an d s p a id against S h o w cau s e notice .

f) The C om p any h as filed a pp eal s in re sp ect o f certa i n d isa llo wn ces /

add i tio ns m ade in t he Inco m e Tax A ss es sm en t in re sp ec t o f A sses sm en t

Year s 1 9 96-9 7 to 2 0 01-02 (e xcep t A . Y. 19 9 8-99 & 1 9 99 -0 0) . 3 35 83 30 82 0

5 . T he C o mp an y has d urin g th e yea r s t arte d con tribu ting th e ac tua r ially a s se s s ed l iab ility to a g ro up g rat u ity fun d b y ini tia l co n tr ibu t ion of R s 2 000 tho us a nd s . Th e a pp r oval fro m rel e va nt In co m e T a x A u tho riti es fo r th e gra tu it y t ru s t fo rm ed fo r th e p urpos e i s y e t to be r e cei ve d .

6 . P en ding r ece ip t o f D E PB lic en se s agai ns t th e ex ports ma d e , th e C om p an y ha s a cc ount ed for es t im ate d

c red it , to wa rds ex p e cte d D E P B b e ne fit am o unt in g t o R s. 2 369 tho us a nds u nde r th e he ad r a w

m a te ri als . Va r iat ion , if a ny on a ct ua l rec ei pt an d r e ali s ati on b y s al e an d / o r s a vin g on u ti li s ation o f li cen s es w i l l b e d e a lt w i th in th e ac co un ts o f t ha t year .

7 . Th e est im at ed a m o u nt o f c o n trac ts re m ain in g to b e e xe cut ed o n cap i ta l a cco un t a nd no t p ro vi ded fo r, n et o f ad va nc es R s . N i l (P re vi ou s ye ar R s .1 96 th ou s and s)

8 . A n aw ard h a s b ee n r ec ei v ed i n th e arb it rat io n m at ter w it h G A IL i n vol v in g d is pu te s rega r d ing i) rev is io n in

C ap i tal co s t o f pip e lin e b y R s 23 34 th ous an ds ; an d ii) add i tio n al t ra n sp ortati on c ha rges from J a nu ary , 19 97 u nd er th e s up ple m ent ary a gree m ent for a dd i tio na l qu an tity o f G a s. A cc ord ing l y , the d eb i t no te o f R s 12 23 th ou s and s rai sed by G AI L i n A p ri l, 1 99 8 in res p ec t of it em i) a bo ve an d e arl ie r p r o vid e d in the bo oks

ha s bee n re ve rse d an d c red i te d to o th er in com e as th e s a m e is n ot p ayab le a n d t h e r e lie fs o n th e o th er is su e w il l be a cc ou nte d on rec ei p t b asi s .

9 . S un dry C red it ors (s ch ed ule 1 0) in clud e R s 89 2 th ous an ds du e to s m a l l scal e / anci lla ry un de r tak in g. Su ch u n d erta k ing t o w h ic h the co mp an y o w es a s u m e xc eed in g R s .1 00 tho us an ds f or mo re th an 30 d ays is R s 73 2 t hou sa nds . Th ere w ere n o cla i ms fo r i n te rest o n dela yed p aym e nts .

1 0 . M an ag e ria l R e m un erati on : W hol e-t im e D ire c to r 's R em un erat io n 2 00 3-200 4 200 2-2 003 *

(R s . in th o u sands ) (R s. in tho us a nds ) S al ary 600 1 47 C o nt rib u tio n t o P rov ide nt F und 72 18

P e rq ui sit es 331 6 7 100 3 2 32

• F ro m 0 3-0 1- 2 00 3 1 1 . T h e C o mp an y h a s con ti nu ed e xp er im e nts o n a sse m bli ng o f S ol a r W at er H ea tin g Sys t e ms . T he

de velo pm en tal ex pe ns e s (n et) o f R s. 6 51 th ous an ds in cu r re d o n th is ha ve b een s h own u nd er t he h ea d “C a pit al w o rk in p ro gre s s ”. T h e co mp a n y is yet t o de cid e w h eth er to t ake u p regu lar bu s ines s i n t h is line .

1 2 . R el a te d p arty d is cl os u re s un de r a cc ou ntin g sta nd ard 18 : Th e C om p an y h ad fo llo w in g t ransa cti on s w it h r ela ted pa rtie s :

B o ro sil Gla ss W or ks L im ited ( As s o cia te C om p any ) M ac hi nery H ir e c ha rges - R s 97 00 thou s an ds S ale o f S t o res ite ms - R s 47 8 tho us a nds R ece ivab le a s o n 31 .3 .2 004 - R s 3 82 tho us an ds ( R s 86 3 thou s an ds p aya ble as on 3 1. 3.2 00 3) H ire ch arge s pa yab le wr itte n o ff - N il ( R s 4 5 0 0 t hou s and s in 2 00 2-0 3) P urch as e o f G oo ds - R s 19 7 tho us an ds N ew E q ui ty is s u ed - N il ( R s 4 22 00 tho us a nds in 20 02-0 3) U n s ecu re d l oa ns t ake n & O /S - R s 30 00 0 t hou sa nds ( Rs 15 0 00 th ousan ds as on 3 1 .3 .2 0 0 3)

C orp orat e g ua ra n t ees p rovid ed t o F in a n cia l Ins ti tu tion s to s ec ure t he lo a n s g iven to G uja r at B oro sil Ltd . fo r a to ta l s u m o f R s 11 03 5 3 th ou s and s (P rev io us yea r R s 22 93 40 th ou s a nd s) .

W indo w G lass L im ited ( A s so ci ate C o mp a n y ) S a l e o f G o o ds * - R s 5 7 09 7 th o us an ds

O ff ice re n t / m a i n ten an c e - R s 22 8 t h ou sa nd s R e ce iva b le s - R s 3 27 3 1 t h ou sa n d s ( R s 1 9 4 31 th o u s and s as o n 3 1 . 3 .2 0 0 3)

• A l l sa l e o f g o od s to t h e C o m p an y a r e in th e n o r ma l co u rs e o f bu s i nes s .

S wa pan P rope rt ie s L im ite d

( A s s oc ia t e C o m p an y ) L o a ns g i ven (i nc l. I n te r es t) - R s 1 23 1 t ho u sa n d s ( R s 1 1 5 7 t ho us an ds as on 31 .3 . 2 0 0 3 ) M ax im um b al an ce d u r in g t h e y e a r R s 1 23 1 t h o u sa nd s

In te res t o n lo an s fo r t h e y ea r - R s 74 th o u s and s ( R s 93 th o us a nd s , ne t o f ta x )

F enn el In ves tm en t & F inan ce P v t. L td.

( A s s oc ia t e C om p an y ) N e w E q u i ty is s u ed - N i l ( R s 7 10 0 0 t ho u s an d s in 20 0 2 -0 3 )

B road fie ld H oldin gs Lim ited ( A s s oc ia t e C om p an y )

N e w E q u i ty is s u ed - N i l ( R s 5 6 5 0 0 t ho us and s in 2 00 2-0 3 )

K ey M an ag er ial P ersonne l M r A s h o k Ja in ( A p p o i n te d as - R e m u n e ra t io n R s 1 00 3 th o u s a n ds fo r 20 0 3 -04

W h o le - t im e D ir ec t o r w .e .f 3 . 1 .0 3 ) - R s 11 4 t h o u s an d s to a re la tiv e .( T h is a r ran g e m e n t w a s s u b s is t in g e ve n be f o re h e w as ap p o i n t ed a s W h o le tim e D ire c to r )

13 . T h e C o m p a n y ha s ta k en so m e P l a n t a n d M ac h i ner y on h ire f ro m B o ros i l G l as s W o rk s L td . T h e h ire

ch a rges pa yab l e t o th e s a id c o mp an y o ve r th e p e r io d o f th e ag re e m en t a r e c h a r ge d eq u a l ly o ve r th e to t al p er io d o f H ire A gr ee m e n t.

1 4 .B as i c e a rn in g pe r s ha r e R s. 0 .6 3 ( N o m i n al va l u e R s. 5 p e r s h are) h as b ee n cal cu la t ed b y d iv i d ing th e n et

p ro f it a f te r in te r es t, d e p rec ia tio n a n d ta x fo r t he ye a r as p e r t he a c co u n ts , w h ic h is a tt ri bu t ab l e t o t h e eq u i ty

sh ar e ho ld e r s . 15 . T h e C om pa ny ’ s b u s in es s ac tiv it y fa lls w ith in a s i n gl e p r im a ry b u s in es s s e g me n t v iz . M an u f a c tu re o f s he et

g l as s . A s s uc h , th ere ar e n o se p ar a te rep o r ta b le s e g m e n ts as p e r A c co u n tin g S t an da rd 17 . 16 . D e ta i ls o f In s ta l le d C ap aci ty

2 00 3-2 004 2 0 0 2 -2 0 03 S h ee t G l a ss o n 2 m m b as is i n S q .m t r s. a . In st a ll ed C a p ac i ty 1 2 5 0 0 0 00 12 50 00 0 0 b . A ct u a l P ro d uc t io n 1 2 6 5 4 2 30 1 2 3 0 45 00 c. Q u an t it y o f S a l es 1 2 6 2 7 4 45 1 2 6 3 7 83 4

d . V al u e o f S a les (R s .i n th o u s and s ) * 7 5 6 1 35 74 02 3 6

* N e t o f R e b a te , Q u an ti ty D i sc o u n t a n d C la i m s (i nc l. P rov is io n w r i tt en b a ck )

17 . Q u an ti ti es an d V al u e o f S t oc k o f F in is h e d G oo ds

2 00 3-2 004 2 0 0 2 -20 03 Q ty . Va lu e Q ty . V alu e M .T R s .in t hou sands M .T .. R s .in th o us an ds

S h e et G l as s (a c tu al s m ) ( N et o f b r e ak ages )

a ) O pe n i ng S to ck 1 5 0 0 9 4 15 5 14 3 0 6 5 58 2 9 2 9 3 b ) C l o s in g S tock 12 58 53 16 1 7 5 1 50 09 4 1 5 5 1 4

1 8 . F o re ig n C u r ren c y Tran s ac ti o n s

200 3 -20 04 2 0 0 2 -20 0 3 R s.i n th ou sand s R s. in tho us a nd s i. V a l u e o f I m p o r ts o n C IF ba s is i n re s p ect o f : a . R aw M a t e ri a ls N I L N IL b . C o mp o n en t s & S pa re s P ar ts 1 24 94 7 c . C a p i ta l G o o d s 1 11 9 60

d . P a ck in g M ate r ial N IL 1 4 6 1 ii. E xp en d i tu r e in F o r e ign C u r r e n c y ( o n pa y m en t b a s is ) :

a . F o re i g n T e ch n i ci a n s F e e s 8 77 N I L b . T r a v el li ng E x p en s es 1 40 8 27 02 c . O th e r s 2 06 6 3

d . C o mm is s io n s 2 44 8 5 8 e . S a les c la im s / r e b at e s N IL 2 1 f. S a les p rom o tio n e x p e n s es 7 1 3 4 8

ii i. E ar n in g s i n F o re ig n E x c h an ge F O B V al ue o f E xp or t s 5 4 79 6 7 4 8 0 7

1 9 . Q u a n t it a tiv e de tai ls o f ra w m at er ia ls w h ic h in d i vid ua l ly ac co un t f o r 10 % o r m or e o f t h e t o ta l v a l ue o f r aw m at er ia l co n s u m e d

20 03 -20 04 20 02-20 03 Q ty . Valu e Q ty . V alu e M .T. R s.in thou san ds M .T R s. in tho us an ds

S ilic a Sa nd 4 19 33 2 96 97 4 1 1 2 6 2 96 18 S o da A sh 1 15 22 9 30 77 1 14 98 87 380 G las s cu l let s 13 692 38 19 3 117 27 3 192 4 D o lo mi te lu m ps 118 87 1 05 77 1 11 99 9 097

O t he rs 63 04 7 75 9 --- --- -- - ----- -- - 177 848 16 577 8

== = = = = == ==

2 0 . V al u e o f I mp o r te d a nd

In d i gen o u s R a w M at er i a l 2 00 3-2 004 2 0 0 2 -2 00 3 an d C om po ne n t s c o n su m e d p er c en t age o f e ac h to V alu e V al ue

t o ta l co n s u mp tio n % ag e Rs in thousan ds % a g e R s .in th ou s an ds a. R a w M a ter ia l

Im p o r te d -- - -- - - - - -- - Ind ig e n o u s 1 0 0 . 00 1 7 7 8 4 8 1 0 0 . 00 1 6 5 7 7 8 1 0 0 . 00 1 7 7 8 4 8 1 0 0 . 00 1 6 5 7 7 8

b . S to r es a n d S p a r es Im p o r te d 4 . 30 6 49 5 .4 9 8 3 6

In d i g en o u s 9 5 . 7 0 1 4 4 3 3 9 4 . 5 1 1 4 4 0 0 1 0 0 . 00 1 5 0 8 2 1 0 0 . 0 0 1 52 36

2 1 . P rev io us y ears f ig u r e s h a ve b ee n r e g ro u p e d a n d re ar ran g e d w h er e ve r n ec es s ary .

2 2 . R u p ee f ig u re s ha ve b e en g ive n in th ou s a nd s i n v iew o f N o t ifi ca t io n iss u ed o n 1 .8 . 2 0 0 2 f o r a me nd m e n t o f S c h ed u l e V I o f t he C o m p an ies A c t, 1 9 5 6 .

S ig n a tu re to S c he du l es 1 to 2 0

As pe r o u r re po rt ann exed F or S IN G HI & C O M P A N Y F o r an d o n b eha lf o f B o a r d o f D ir ec to r s C h ar t ere d A c co u n t an ts B .L . Kh e r uk a P r av e en K r . Sing h i C hai rm a n

P a r tn e r

M u m bai : A r un K u m a r A s hok J a in

D a te d : 28th

J u ne , 2 0 0 4 C o m p a n y S ec r eta r y W h o le ti m e D ir e ct o r

G UJ A RA T B O R O S IL L TD

B AL AN CE S HE E T AB ST R A CT A N D COM P AN Y 'S G E N E R AL B US IN E SS P ROFI L E

I . RE G I ST R A TI ON D E TA IL S

R e g i st ra t io n N o : 1 16 6 3 S ta te C o d e : 0 4

Ba lan c e Sh eet D a te : 3 1st M ar c h , 2 0 0 4

II . CA P ITA L R A IS ED D UR IN G T H E Y EAR

(A mo u n t in R s. T h o u s and s )

P u b lic Iss u e : N I L R igh t s Is s u e : N IL

Bo n u s Is s u e : N IL P r iv a te P l ace m en t : N IL

I II. PO S IT ION OF M O BI L IS ATION A ND D E P L OYM E N T OF F UN D S (A m o u n t in R s. T h o u s an d s )

To t a l L i ab i l it ies : 7 65 4 1 4 T o ta l A s s ets : 7 65 4 1 4

Sour c es o f F un ds

P a id -u p C ap it a l : 3 41 0 38 R eser ves & Su r p lu s * : 2 84 0 2 3

S ecu r ed L o an s : 1 10 35 3 U n s ecu r ed L o a n s : 30 0 0 0

A pp lica tion of F unds

N e t F ix ed As se t s : 4 73 9 74 I n ves tm ent s : 1 N et C u r ren t As se t s : 2 91 4 39 M is c . E x pen d i tu re : N IL

A c c u m u la t ed L o ss e s : N IL

* A s u m o f R s 7 70 0 th o u s an d s h a s b een cre d it ed to P ro fit & lo s s ac co u n t sep ara t e ly b e in g rem is sio n o n p re -p a y m e n t o f lo a n an d th e sam e h as b e en t ra n s fe rre d t o C a p it a l R es e rv e .

IV. P ERF O R M AN CE O F C O M PA NY (A mo u n t in R s. T h o u s and s )

Tu r n ov er & O t h er In co m e : 6 85 1 69 To t a l E x p e n d it u re : 6 42 4 7 5

Pro f it /(L o ss )b efo re T ax * * : 42 6 9 4 Tax : N IL

E arn in g s p e r Sh are in R s . : 0 .6 3 D ivid e n d R at e % : N IL

* * A ft er co n s id erin g P re v io u s Ye ar ex p e n s es – N e t (10 )

V. GE N E R I C N AM E O F P RI N C IPA L P R O DU C T O F T H E C O M PA NY

It em C o d e N o .( ITC C o d e) : 70. 0 4

Pr o d u ct D es cri p ti o n : D R A W N S H E E T GL A S S

F o r an d on b eh alf o f th e B oa r d o f D i rec to r s

B . L . K he r uk a

C h a irm an

M u m b ai . A run K um ar A s h o k J a in

D ate d : 28th

Ju n e , 20 0 4 C o m pa n y S e cre t a ry W h o le -t im e D ir ec to r

GUJARAT BOROSIL LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2004

Rs in thousands

For the year For the year

ended ended

31.03.2004 31.03.2003

A. CASH FLOW FROM OPERATING ACTIVITIES

Net profit before tax and extraordinary items 46347 36105

Adjustment for :

Depreciation 44954 45274

Foreign Exchange

Investments (Diminution in value)

Interest/Dividend -4480 -7806

Miscellaneous Expenditure Written off 1322 1010

Operating Profit before Working Capital Changes 88143 74583

Adjustment for :

Trade & other receivables 31988 65748

Inventories -1099 5013

Trade Payables -1774 -58320

Cash Generated from Operations 117258 87024

Interest Paid 3766 3372

Direct taxes

Cash Flow before Extraordinary Items 113492 83652

Extraordinary Items

Income / Exps relating to earlier years 10 -62

Previous Year Expenses

Net Cash from Operating Activities 113482 83714

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchases of Fixed Assets -3863 -5224

Deferred Revenue Expenses

Sale of Fixed Assets 813 99

Acquisitions of Companies

Purchase of Investments

Sale of Investment 150

Interest Received 4480 7806

Dividend Received

Net Cash used in Investing Activities 1430 2831

GUJARAT BOROSIL LIMITED

Rs in thousands

For the year For the year

ended ended

31.03.2004 31.03.2003

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of Share Capital 146700

Increase in reserves

Proceeds from Long Term Borrowings (net) -91678 -190787

Proceeds from Unsecured loan 15000 -43500

Increase/(decrease) in Bank Borrowings -19486 29520

Dividend paid

Net Cash used in Financing Activities -96164 -58067

Net increase/(decrease) in Cash and Cash Equivalents 18748 28478

Cash & Cash Equivalents as at 01.04.2003 68515 40037

(Opening balance)

Cash & Cash Equivalents as at 31.03.2004 87263 68515

(Closing balance)

As per our report annexed For and on behalf of the Board of Directors

For SINGHI & COMPANY

Chartered AccountantsB.L. Kheruka

Chairman


Partner

Mumbai Arun Kumar Ashok Jain

Dated : 28th June, 2004 Company Secretary Whole-time Director

D IR EC T O RS ’ R EP O R T

To : T he M e m be rs of G uja rat B or o sil L im ite d

Y o ur D i r ect ors ar e p lea s ed to p re s en t th eir F ifte ent h R e po r t a nd A ud ite d S tatem e n t o f A c cou nt s for t he ye ar e nd ed 3 1 st M ar c h, 2 004 .

FI NA N CIA L RE S ULTS

Th e fin an cia l res u lts fo r the ye ar e nd ed 3 1 st M a r ch , 20 0 4 are g iven b el ow : (R u p ee s in La cs )

Y ea r E nd ed

3 1.03 .200 4

Y ea r E n de d

3 1 .03 . 200 3 G ro ss S a le s ( in cl udin g Ex ci se D u ty) 75 61 .35 74 02 .36 P r ofi t b efo re i n ter e st a nd d e prec iat io n 9 17 .32 81 4.2 5 In te re s t 3 6.4 3 3 3 .7 2

D e prec iat io n 45 3.8 5 45 3.2 0

P ro fi t / (L oss ) for th e ye a r 42 7.0 4 32 7.3 3 P ro f it o n sale o f In ve st m en ts - 1.4 9

P revio us Y e ar E x pe ns e s (N e t) (0.1 0) 0.6 2

N et P ro fit / (Lo s s) 42 6.9 4 32 9.4 4 A d d: B ala nc e bro ught fo rw ard from la st ye ar 32 9.4 4 (11 78 8.4 3)

T ota l 75 6.3 8 (11 45 8.9 9) E f fect o f B IF R o rd er and s et tl e me nt o f l oa n 7 7.0 0 1 37 07 .8 4 A m o un t tr an sfe rre d to C apit al R es erve 7 7.0 0 19 19 .41

C a rr i ed to th e B ala nc e S h ee t 75 6.3 8 32 9.4 4 Y o u r D i re cto r s do n ot re co m m e nd a ny d i v ide nd in o rd er t o co ns erve r es o urce s .

C ES SA T IO N AS S ICK I ND U ST R IA L C OM PA NY - B IF R O RDE R

Y o ur D irec to rs are p le as e d to inform t ha t B IF R ha s p a s sed a n ord er o n 20th M ay, 20 04 d ecl arin g th a t th e

C om p any i s n ow o ut of pu rvi e w of S i ck Ind us t ria l C om p ani es (S pe cia l P rovis ion s) A ct,1 985 , i n vi ew of th e

C om pa n y’s ne t w orth bec om in g po s iti ve .

G o ve rn me nt o f G uja rat h as f ina lly co n ve ye d th eir in ab ili ty to gran t ex te ns ion o f ti me fo r u t iliza tio n of S a les

T ax be nef i ts . Ho w e ver , the y ha ve a nn ou nc ed c erta in relie f s f o r s ic k unit s w hi ch w ill no t be ap p l ic a ble to th e C o m pa ny s inc e th e ne t w or t h is alr e ady p os it ive . E x c ep t thi s, al l con cern ed p a rti es ha ve fu l fil le d th eir f i nan ci al

o bl igati o ns und er the M o di fie d R e habi li tat io n S c hem e p as s ed by B IF R in D ec em be r, 2 00 2.

P E RFO RM A N CE The C o mp an y ha s be en ab le to con ta in th e q ua li ty p ro bl em s . Th e tec hn ic al p roble ms fa ce d by the C om pa n y

fo r qu ite s om etim e l ead in g to pr o du ctio n o f infe rio r qu al ity m at erial ha ve be e n o ve rc o m e a f ter im ple m en ta tio n of s ugge stio ns g i ven b y an oth er forei gn te ch nic al e xp ert w h o vi si t ed th e p l ant in D e c em be r, 2 00 3 an d the Co mp an y d oe s n ot h a ve t o go in fo r c ol d r ep air s o f fu rn ac e im m ed ia tel y . Th is has le d to gra du al

im pro ve m e n t in t he s al es r ealiz at ion .

T he C o m pan y su cc e ed ed i n in cre as in g s a les in t he d o me s ti c m ark e t in vie w o f gro w th i n th e d e m an d d espi te

con tinu in g i mp or ts .

H igh er vo lu m es o f p ro du ct i on a nd d om e st ic s al e s en ab led th e C om pa n y to m ain ta in th e p ro f it b efo r e in te re s t a n d d ep r ec ia ti o n in s p ite o f inc r ea se i n i np ut co st s . T h e w ork ing is e xp ect ed to b e b e tt e r in fu t u re as s a les r e al iz at io n s are lik e ly to b e b et ter o n ac cou n t of goo d q ua lity p ro d u ct .

T h e C o mp an y has ma d e pr e pa y m en t o f t e rm l oa ns o f IC IC I B an k Lt d . D ur in g th e cu rr ent y ea r , the te r m lo a n s of S t a te B an k o f I nd ia an d T he F ed er a l B a nk L im it ed h a ve a ls o b een prep a i d .

V O L U N T AR Y D E L IS T IN G O F SH A R E S

In t er m s of r es o l u t ion p a s se d b y the m e m b e rs a t th e la s t A n n u a l G en era l M e eti ng , th e C o m p a ny m ad e ap pli cat io n to t he S toc k E x ch an ge s a t A h me d a ba d, K o l k at a an d V ad o d ara for vo l u n tary d el i st ing o f it s sh ares .

Th e S to c k E x c h an ge, A h m ed ab a d ha s d e l is te d t h e e qu ity s h are s of th e C o m pa n y w .e. f . 3 1 st M a rch , 20 04 . R e s po nse fro m o the r S to c k E x cha nge s a r e a w a ite d .

D IR E CT O R S IC IC I B an k L td . w it h d rew n om in at i on o f M r. V . A . G o re a s i t s N o m i nee D ire cto r w ith e ff e ct fro m 6 t h F e brua r y , 2 00 4. H o w e ve r , M r. G o re h a s be e n app oi nte d a s a n A d d i ti on al D ire cto r w .e . f. 3 1 st M a y, 2 0 0 4. H e va c a tes h is o f fi c e as a n A d di tio n a l D i r ect or at th e e n s u ing A n n u al G en era l M ee tin g . T he C o m p an y ha s rec ei ved a n o ti ce in w r iti n g f rom a M e m be r s ign i fy i n g h is in te n tio n to p ro p os e th e a p p o intm e n t of M r . V .A . G ore a s a d irec to r o f th e C o m p a ny .

M r . C . D . Trip at h i c eas e d to be a Sp e c ial D ir e cto r of B IF R o n th e B o ard o f th e C o m p a ny w .e. f . 2 0 th M a y, 20 0 4 , in te rm s of O rd er of B IF R of e ven d at e. Th e B o ard p lac ed on rec ord i ts s inc ere a p p re ci ati on of th e val u a b le gu id a n c e r e cei ve d f ro m M r . C . D . T r ip ath i d ur ing h is te nu re as a d irec to r o f th e C o mp an y .

M r. B . L . K h eruk a a nd M r. H a igr e v e K h a it a n re t ir e b y ro ta tio n an d b ei ng e l ig i b le o ffe r th em s elf f o r r e -ap po in tm en t.

M A N A G E M E N T D IS C US S IO N & A N A LY S IS R E P O RT

A . I ND U ST R Y S T R U C T U R E A N D D E V E L O P M E N TS

T h e F la t G la s s In du st ry c on s ist s of flo at g las s , s h eet g la ss a nd figu re d g la s s a s w ell a s p ro ce s se d

g l as s lik e t e m p ere d g la s s , mi rr o r s e tc. I n vi e w o f g lo ba l t e c h n o lo g ic al ch an g es ta kin g p la c e, the grow t h in th e fl a t g la ss ma rk e t has b ee n t ake n by f lo at g las s . Th e Ind ia n m a rk et w he re ru ra l p o p u l a tio n i s

ve r y h i gh co nt in u e s to be c o s t co n s c iou s a nd in sp i te o f la r ge ne w fl o a t c ap a c it i es h a vi ng b e en a d d e d in l as t te n y e ars a nd im p o rt s , s he et g la s s co nt in u e s to f in d m a rk e t in th e co un try . Th e d o m es t ic de m an d ha s b e en g r o w in g s t ead i ly o ve r t h e ye ars d u e t o h igh gr o w t h i n H ou si ng a n d A u t o m o b i le s ec to rs

an d t h e ga p b e tw een d e m and an d s u p ply i s n a r ro w in g d o w n. T his w i l l l ead t o s e ttin g u p o f fu rt he r c apa ci tie s in th e c o un t ry .

B . O P P O R T U N IT IE S & T H R E A T S

O P P O R T U N IT IE S

¾�Th e C o mp a n y is a m aj o r p la yer i n th e s h e e t g las s m arke t a nd h as a goo d bra n d im a g e .

¾�T h e C o m p a n y ha s a l arg e a nd e sta bl is h ed ne tw o rk o f d ea ler s a n d h a s s ucc es s ive ly sh o w n i ts

a b il ity to m ark e t i t s pr o d u c ts at t h e tim e of c u t-th ro at c om p e ti t io n .

¾�Based on comp arison of cos t ascer tai nable fro m ann ua l repo rts o f floa t / s heet glass manufactu rers, it is evident th at t he Comp any is cost e ffecti ve an d com pares favou rabl y with o th ers.

¾�The Co mp any h as reduced deb t to very low l evel as expla in ed ea rl ier. The ne t worth o f Comp an y is positive an d debt equity rat io is ver y co mfo rtab le.

T H RE ATS

¾�O ver th e ye a rs , share o f Sheet G lass in th e ove rall m arke t wil l b e go ing do wn a s th e growth

is entire ly in float segment.

¾�C h eaper imp orts of f lo at gla ss and ex pansi on prop osed by so me of the manu fac ture rs may di s tor t th e demand su pply equ atio n and lead to d estabi liza tion i n s e lling p rice s.

¾�C on straints of P roduct mix and va lue ad ded items .

¾�D iscontinua ti on o f S al es Tax b enefits ava ila ble until recent ly lead in g to lower p ro fits and co mp eti tio n

agai nst u nits which con tinu e to have tax benefit s.

¾�Increase in fu el c ost du e to deregul ati on of prices of nat ural ga s and linkage to inte rnat iona l p ri ces.

C . SEG ME NT W ISE O R P RO D UC T W ISE PE RFO R MA N CE The C o mp an y’s busine ss activity falls with in a s ingle p rimar y b usine ss segment viz. M anufact ure

of sh eet glass. As such, there are no s ep arate repo rt able s egments as pe r Accou nt ing S tanda rd 17.

D. OU TL OO K

The col d repair o f sheet furn ace is n ow postp oned. The C om pany’s product continues to be in demand an d we do no t forese e an y diffi cu lties in sell in g.

As fa r as th e ind ust ry is co ncerned, th e ou tlo ok app ea rs to be go od in view of measures u nd ertaken b y th e Govern ment to give a bo ost to t he hous in g secto r, gradual increase in th e s iz e o f mid dle cla s s, increase in glass requ irem en t per squ are feet o f construction in hou sing an d i nd ustr ial constructi on and th e gro wth in ru ra l economy.

E . RISK AN D C O NCE RNS

The Industry ha s been a skin g the Go ve rn me nt t o po pu lar ise p roduc tion o f so lar en ergy w hich w ill req uire huge q uan ti ty o f Gl ass. The energy pro du ced will b e cheap er and mo re dependab le by thi s

non -co nven tiona l ro ute.

The absence of mandato ry B uil ding C o de regard ing u ses of gla ss is an area of co ncern, where Go vernmen t in terventi on is requ ired to en sure b et ter qu alit y of c on stru ctio n wit h highe r sa fety.

F . INTE R N AL CO N TR OL SY S TEM S A ND TH E IR A D EQ U A CY

The C o mpany has adeq ua te In tern al C o ntro l System co m men surat e with it s siz e and n at ure o f

b usin ess. Th e i nternal con trol system s are design ed to ensure th at th e f inan ci al stat emen ts are p repared b ased on re liab le in fo rmatio n. The Interna l Aud it is co ntin uo usl y cond ucted b y i n h ouse In tern al Au di t d epartmen t of the Com pany and Int erna l Aud it R eports are revi ewed by th e Au dit C o mm ittee.

G . DI SC USS IO N ON F IN AN C IA L P ERF O R MA N CE W IT H R ESP E CT T O O P ER A TIO NA L

P E RF O RM A N CE

Th e op era tin g p erform a nc e du ri ng the ye ar w as be tter co mp are d to th e p r evi ou s ye ar . P rod uct ion i nc re ase d fu rthe r an d to uch ed a ll time h igh . T he s al es valu e al so in crea sed m argi nal ly d ue to hi gher

d om esti c sa les . T he pro fi t be fo re int eres t a nd d epre cia tio n w as h ig h er at R s .91 7.3 2 la cs co m pa red

t o R s. 81 4.25 la cs in the p re vio us ye ar . T he op er ati ng co s ts in crea s ed to s om e ex ten t du e t o ge ne ral a ll aro un d i ncre as e in in put p rice s / fre ight a nd po w er & fu el .

H . M A TE RIAL DE V EL O P M EN T IN H UM A N RE SO UR CE S , IN D UST R IA L R E L A TION FRO N T , IN C LU D IN G N UM B E R OF P EO P LE E MP L OY ED

T he in du st ri al r elat ions con tinu ed to b e co rdial . In te rm s of d evelo pm en t i n Hu m an R esou rc es t he

C omp a ny ha s un de r tak en c erta in m easu res fo r ex am p le :-

¾�E mp loye es were im p arte d 1 34 1 ma nh ou rs o f tr a ini ng on vari ed top ic s r an ging f rom Te ch nic al ,

C omm erc ial and S of t S ki ll . C om p ared to la st ye a r , it ha s in crea se d b y 8 5.8% . Th e e m plo ye es wh o

a tte nd e xtern al tr aini ng, h old i n-h o use w o rk s ho p o n th e s ub jec t to sh are ne w ly acq ui re d k no wle dge. Th is pra ctic e is in i ti ate d t o impro ve w ork cu lt ure .

¾�C onti nu ed th e do cu m ent ati on of v ario u s op era tin g sys t e ms w he rei n th e c ri tic al p roce s s par a m et ers

h a ve bee n ide nt ifie d a nd be n c h m a rk ed . T hi s w il l h elp us to r ed uc e d e via t io ns , t ro ubl e-sho o tin gs a nd

in tu rn t he bo ttle nec ks .

¾�M a in taine d c lose m on ito r ing o f a lrea dy e st ab lishe d sy s tem s lik e C he ck C h art s ystem , M ain te nan ce

S yst em , S yste ms A u dit , c r it i cal pro du ctivi ty par a m e te rs e tc. w ith a vie w to m ak e the ir gain i rre v ersib le. D a ily m on ito rin g of no rms wh ic h has le d to impro vem e nt in Q ua lit y, pro du cti vit y ,

m ai nte na nc e of eq ui pmen t at o ptim u m c os t .

Nu mb er of pe op le e m ploy e d at t he e nd o f ye ar w ere as un de r:

S ta f f : 15 8

W o rk ers : 317 ( E x clud in g c o n trac t la bo ur )

C O RPO RA T E G O V ER N AN CE REP O RT A s ep arat e sect ion on C o rporat e Go ve rnan ce i s in cl ud ed in th e A n nu al R ep ort an d the C ert ifica te

fro m C o mp an y’ s au dito rs co nfirm ing the co mp lia nc e wi th th e co de o f C orp orate G o vern an ce as

en um er ate d in C lau s e 49 o f the l is t in g a gre e m e nt w it h t h e Stoc k E xc ha n ge s is a nn exed h ereto .

DE P O SITS

Y ou r C om pa ny ha s n ot ac ce pte d an y d ep osi ts f rom P u blic till da te .

P O LL UT IO N CO NTR OL

Th e C om pa n y’ s pl an t d o e s not gen era te any ef fl ue nt ex cep t fl ue gas , t he ch emic al co mp os it io n of w hic h is with in p erm issib le lim its .

A UD IT O RS

M /s . S in ghi & C o m pan y, C h arte re d A cc ou nta nts , w ill re tire as Au d ito rs o f the C om p an y a t the co nc lusio n o f th e en s uing An n u al Ge ne ral M e etin g an d b ein g e ligi ble ha ve e xp re s s ed th ei r wi lli ngne s s for r e-a pp oi ntm en t.

D IR EC T OR S ’ R E SP O NSIB IL ITY S T AT E ME NT S u bjec t to d i sc los u re s in t h e A n nu al acc o u nt s an d a ls o o n th e ba s is o f th e d is c uss i o n w ith th e S t a t u tory

A u d i to r s o f th e Co m pa n y fro m ti me to ti me , t he B o ard o f D ir e cto r s s tat e as u n d e r : i ) t ha t i n the p r ep arati o n o f the a n nu a l a cc o u n ts , th e a p pli cab le a cc ou n tin g s ta nd ard s h av e b e e n fo ll o w e d

a n d t he re w ere n o m at e ria l de pa rt ures . ii ) t h a t w e h a ve s e le ct ed s u c h a cc ou nti n g po li c ie s a nd ap pli e d t he m co n s is te nt ly an d m ad e j ud g em e nts

an d es t im a te s t h a t a re rea s on ab le and p ru d ent s o as t o g i ve a t rue an d f a ir vi e w o f th e s ta te o f affa irs o f th e Co m p an y at t h e e n d of th e fin an c ial y e ar an d o f th e p r ofi t or lo s s of th e C om p any fo r t ha t

p e rio d . i ii ) t ha t w e h a ve t ak en pro p er an d s u ff i cie n t c are fo r the m ai n te n a n c e o f a de q u a t e a c co u nt in g r e co rd s i n

ac co rdan ce w it h th e p ro vis io ns o f th e Co m pa n ie s A c t , 1 9 5 6 fo r s a fe g ua r din g th e as s ets o f th e C o m pa n y an d f or pre ve n t in g a nd d et ect ing fra u d an d o the r i rr e g ula r ities .

i v) tha t w e h a ve p re pa red t he a nn ua l acc ou nt s o n a goin g con ce r n b a s is.

AU D IT OR S ’ REPO RT Th e no tes t o th e A cc ou nt s r efer red to in th e A u d i to r s R ep or t are s el f ex pla n a tor y a n d the refo re d o n ot ca ll fo r

an y fu rth er e xp lan a t ion . P AR TIC U LA R S O F E MPL OY EES T he re w as n o e mp lo yee dr a w i ng re m u n era tio n to t he ex tent w h ich re q u ire s d i s clo s u re u nd er S ect io n 2 1 7 (2A ) o f t he C om p an ies A c t, 1 95 6 .

CO NS E RV A TI ON OF ENE RG Y , T ECH NO LO GY AB SO RP TION A ND FO REIG N EX CH ANG E E AR N IN G S A N D O U TGO .

Th e p art ic ula r s p res cr i bed u n de r th e C o mp an ie s (D is c l o su r e of P a r tic u la r s in t he R e po rt o f B o ar d o f D ir e cto r s ) R ule s , 1 9 8 8 ar e f u rn is h ed in the A nn e x ure to th e R e p ort.

A CK N OW L E DG ME NT Y o u r D i re c t or s w o ul d lik e to e xp re s s th eir d ee p ap p r ec ia ti on fo r th e as s is ta nce /vario us f ac ilit ies an d c o-o p e r ati on r ec ei ve d f ro m th e F in an c i al Ins ti tu ti ons , B a nk s , G o ve r n m en t of G u jara t, B o ar d for In d u s tr ial an d F i nan cia l R ec o n s tru cti on ( B IF R ) a nd e m p l o ye es d u ri ng th e ye a r u nd er re vie w .

F o r a nd on beh al f o f th e B o ar d o f D ir ec tor s

B .L. K h eruk a P la ce : M u m b ai C h ai rm a n D a te : 30 th Ju ly , 2 00 4

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