EXCEL INDUSTRIES LIMITED

CONTENTS

Board of Directors .. .. .. .. .. .. .. .. .. .. .. .. 2

Notice .. .. .. .. .. .. .. .. .. .. .. .. .. 3-7

Directors’ Report .. .. .. .. .. .. .. .. .. .. .. .. 8-15

Management Discussion and Analysis .. .. .. .. .. .. .. .. .. 16-18

Corporate Governance Report .. .. .. .. .. .. .. .. .. .. 19-27

Ten-Year H ighlights .. .. .. .. .. .. .. .. .. .. .. .. 28

Summarised Balance Sheet and Profit & Loss Account .. .. .. .. .. .. .. 29

Auditors’ Report .. .. .. .. .. .. .. .. .. .. .. .. 30-33

Balance S heet .. .. .. .. .. .. .. .. .. .. .. .. 34

Profit & Loss Account . . .. .. .. .. .. .. .. .. .. .. .. 35

Cash Flow Statement . . .. .. .. .. .. .. .. .. .. .. .. 36-37

Schedules ‘A’ to ‘S’ forming part of Accounts .. .. .. .. .. .. .. .. 38-45

Schedule ‘T’: Notes on Accounts .. .. .. .. .. .. .. .. .. .. 46-65

Balance Sheet Abstract and Company’s General Business Profile . . .. .. .. .. .. 66

Auditors’ Report on Consolidated Financial Statements .. .. .. .. .. .. .. 67

Consolidated Balance Sheet .. .. .. .. .. .. .. .. .. .. 68

Consolidated Profit & Loss Account .. .. .. .. .. .. .. .. .. 69

Consolidated Cash Flow Statement .. .. .. .. .. .. .. .. .. 70-71

Schedules ‘A’ to ‘S’ forming part of Consolidated Accounts .. .. .. .. .. .. 72-79

Schedule ‘T’: Notes on Consolidated Accounts .. .. .. .. .. .. .. .. 80-96

Statement pursuant to Section 212 of the Companies Act, 1956, relating to Subsidiary Company .. 97

50th Annual General Meeting

on Friday 22-07-2011 at 3.00 p.m.
at Rama Watumull Auditorium,
Kishinchand Chellaram College,
Dinshaw Wacha Road,
Churchgate, Mumbai-400 020.

A REQUEST
We are sure you will read with interest the Annual Report for the year 2010-11. You may desire to have some
clarification or additional information at the ensuing Annual General Meeting. We shall very much appreciate, if
you will kindly write to us at least ten days in advance in order to enable us to keep the information ready for you
at the Meeting. We solicit your kind co-operation.

Board of Dir.indd 1 6/17/2011 5:05:33 PM

 CHAIRMAN EMERITUS
K. C. SHROFF
G. NARAYANA

BOARD OF DIRECTORS
A. C. SHROFF, Chairman & Managing Director
U. A. SHROFF, Executive Vice Chairperson
S. R. POTDAR, Executive Director
A. G. SHROFF
R. N. BHOGALE
H. N. MOTIWALLA
P. S. JHAVERI
D. K. SHROFF
M. B. PAREKH
N. B. SATHE

COMPANY SECRETARY
S. K. SINGHVI

AUDITORS
S. R. BATLIBOI & CO.
Chartered Accountants

BANKERS
Bank of India
State Bank of India
Axis Bank Limited

REGISTRARS & TRANSFER AGENTS

Link Intime India Pvt. Ltd.,
C-13, Pannalal Silk Mills Compound,
Bhandup (W), Mumbai 400 078.
Tel : 2596 3838, Fax : 2594 6969

REGISTERED OFFICE
184-87, Swami Vivekanand Road,
Jogeshwari (West), Mumbai 400 102.
Tel : 6646 4200

FACTORIES
M.I.D.C. Area, Roha, Maharashtra.
M.I.D.C. Area, Lote Parashuram, Maharashtra.
Baherampura, Ahmedabad, Gujarat.

Board of Dir.indd 2 6/17/2011 5:05:33 PM

 EXCEL INDUSTRIES LIMITED

NOTICE

NOTICE is hereby given that the 50TH ANNUAL GENERAL MEETING of the Members of EXCEL INDUSTRIES LIMITED will be held
at Rama Watumull Auditorium, Kishinchand Chellaram College, Dinshaw Wacha Road, Churchgate, Mumbai-400 020 on Friday,
the 22nd July, 2011 at 3.00 p.m. to transact the following business:

ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Profit and Loss Account of the Company for the financial year ended 31st March,
2011, the Balance Sheet as at that date together with the Reports of the Directors and the Auditors thereon.
2. To declare a dividend on Equity Shares of the Company for the year ended 31st March, 2011.
3. To appoint a director in place of Mr. R. N. Bhogale who retires by rotation and, being eligible, offers himself for re-appointment.
4. To appoint a director in place of Mr. D. K. Shroff who retires by rotation and, being eligible, offers himself for re-appointment.
5. To appoint Auditors and to authorize the Board of Directors to fix their remuneration.

SPECIAL BUSINESS:
6. To consider and, if thought fit, to pass, with or without modification(s), the following resolution as a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 198, 269, 309, 310 and 311 read with Schedule XIII and all other
applicable provisions, if any, of the Companies Act, 1956 (“the Act”) (including any statutory modification(s) or re-enactment
thereof for the time being in force), and pursuant to the resolutions passed by the Remuneration Committee of the Directors of
the Company and by the Board of Directors at their meetings held on 20th May, 2011 consent and approval of the Members of
the Company be and is hereby accorded to the re-appointment of and payment of remuneration to Mr. S. R. Potdar as Executive
Director of the Company for a period of three years with effect from 3rd September, 2011 on the terms and conditions as set
out in the draft Agreement to be entered into between the Company and Mr. S. R. Potdar, placed before this meeting and duly
initialled by the Chairman & Managing Director of the Company for the purpose of identification which agreement is hereby
specifically sanctioned with liberty to the Board of Directors (hereinafter referred to as “the Board” which term shall include
the Remuneration Committee constituted by the Board) to alter and vary the terms and conditions of appointment in such
manner as may be agreed to between the Board and Mr. S. R. Potdar, but so as not to exceed the remuneration set out in the
draft agreement.”

NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND TO
VOTE, ONLY ON A POLL, INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. PROXY TO
BE EFFECTIVE MUST BE RECEIVED BY THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE MEETING.
2. An Explanatory Statement relating to the Special Business under Item No. 6 as required under Section 173(2) of the Companies
Act, 1956, is annexed hereto.
3. Additional information pursuant to Clause 49 of the Listing Agreement with Stock Exchanges in respect of Directors appointed/
re-appointed is appearing in the Corporate Governance Report forming part of this Annual Report.
4. The Register of Members and the Share Transfer Books of the Company will remain closed from Saturday, the 16th July, 2011
to Friday, the 22nd July, 2011 (both days inclusive).
5. Members are requested to notify immediately any change in their addresses to their Depository Participants (DPs) in respect of
their electronic share accounts quoting Client ID No. and to the Company in respect of their physical shares, quoting Folio No.
6. Payment of dividend as recommended by the Directors, if declared at the Meeting, will be made on or after 26th July, 2011
to the Members whose names stand on the Company’s Register of Members on Friday, the 22nd July, 2011 and to the
Beneficiary Holders under Demat Category as per the Beneficiary List on the close of business hours on Friday, the 15th July,
2011 provided by National Securities and Depository Limited and Central Depository Services (India) Limited.

Notice.indd 3 6/17/2011 5:21:32 PM

 7. Payment of dividend will be made through Electronic Clearing Service (ECS) at the RBI Centres by crediting the dividend
amount to the bank account of the shareholders wherever relevant information is made available to the Company. Members
holding shares in physical form and covered under the RBI Centres who have not furnished requisite information and who
wish to avail of ECS facility to receive dividend from the Company may furnish the information to Link Intime India Private
Limited, the Registrars and Transfer Agents. Members holding shares in electronic form may furnish the information to their
Depository Participants in order to receive dividend through ECS mechanism.
8. Pursuant to the provisions of Sections 205A and 205C of the Companies Act, 1956, the amounts of dividends remaining
unclaimed for a period of seven years are to be transferred to the Investor Education and Protection Fund.
The details of dividend declared/paid for the financial year 2003-2004 onwards are given below:
Date of Declaration Dividend Dividend Due date of the proposed transfer to the Investor
for the year ` Per Share Education & Protection Fund
30.07.2004 2003-04 1.00 04.09.2011
29.07.2005 2004-05 0.50 03.09.2012
26.07.2007 2006-07 0.50 31.08.2014
04.09.2008 2007-08 1.00 10.10.2015
24.08.2009 2008-09 0.50 29.09.2016
19.07.2010 2009-10 2.00 24.08.2017
Members who have not encashed the dividend warrants for the year 2003-2004 and/or any subsequent year(s) are requested
to write to the Company for revalidation of dividend warrants before such unclaimed dividend is transferred to the Investor
Education and Protection Fund.
9. The Ministry of Corporate Affairs has taken a “Green Initiative in the Corporate Governance” by allowing paperless compliance
by the companies and has issued Circulars stating that service of notice/document including Annual Report can be sent by
e-mail to its members.
To support this green initiative of the Government, members who have not registered their e-mail addresses so far are
requested to register their e-mail addresses, in respect of electronic holdings with the Depository through their concerned
Depository Participants. Members who hold shares in physical form are requested to register their e-mail addresses
with the Registrar of the Company i.e. M/s. Link Intime India Pvt. Ltd., C-13, Pannalal Silk Mills Compound, LBS Marg,
Bhandup (West), Mumbai-400 078.

REQUEST TO THE MEMBERS

1. Members are requested to bring their copy of the Annual Report to the Meeting.
2. Members who have multiple folios in identical names in the same order are requested to send all the Share Certificates to the
Company Secretary or to the Registrar and Transfer Agents, M/s. Link Intime India Private Limited for consolidation of such
folios into one to facilitate better services.

For and on behalf of the Board of Directors

A. C. SHROFF
Chairman & Managing Director

Registered Office:
184-87, Swami Vivekanand Road,
Jogeshwari (W),
Mumbai-400 102.
Mumbai, 20th May, 2011.

Notice.indd 4 6/17/2011 5:21:32 PM

 EXCEL INDUSTRIES LIMITED

ANNEXURE TO THE NOTICE

EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956
Item No. 6.
Mr. S. R. Potdar was reappointed as Executive Director of the Company for a period of three years with effect from 3rd September,
2008. The term of his office expires on 2nd September, 2011. The Board of Directors in its meeting held on 20th May, 2011, on
the recommendation of the Remuneration Committee has proposed to reappoint him as the Executive Director of the Company for
a further period of three years with effect from 3rd September, 2011 on the terms and conditions including remuneration as set out
in the draft Agreement to be executed subject to approval of the members.
The draft Agreement between the Company and Mr. S. R. Potdar contains, inter alia, the following terms and conditions:
I. SALARY
` 1,70,000 per month in the scale of ` 1,70,000 – 20,000 – 2,10,000.
The annual increments will be effective from 3rd September each year and will be decided by the Board.
II. PERQUISITES
(a) Perquisites like accommodation (furnished or otherwise) or house rent allowance in lieu thereof, house maintenance
allowance together with utilities such as gas, electricity, water, furnishings and repairs, medical reimbursement, leave
travel concession for himself and his family, club fees, medical insurance, special allowance, etc. in accordance with
the Rules of the Company or as may be agreed to by the Board of Directors and Mr. S. R. Potdar, such perquisites for
each year not to exceed his annual salary.
For the purpose of calculating the above ceiling, perquisites shall be evaluated as per the Income-tax Rules, wherever
applicable. In the absence of any such Rules, perquisites shall be evaluated at actual cost.
Provision of the Company’s car and telephone at residence for official duties shall not be included in the computation
of perquisites for the purpose of calculating the said ceilings.
(b) Company’s contribution to Provident Fund, Superannuation or Annuity Fund, Gratuity and Leave Encashment at the end
of his tenure, as per the Rules of the Company applicable to senior executives and the same shall not be included in the
computation of limits for the remuneration or perquisites aforesaid.
III. COMMISSION
A sum calculated with reference to the net profits of the Company in a particular financial year, as may be decided by the
Board of Directors, not exceeding 24 months of his salary, within the overall ceilings stipulated as per the provisions of the
Companies Act, 1956.
IV. MINIMUM REMUNERATION
If, in any financial year, the Company has no profits or its profits are inadequate, then in such an event, subject to the
approval of the Central Government as may be required, the remuneration by way of salary and perquisites as specified in
paragraphs I and II above will be paid as minimum remuneration.
V. OTHER TERMS
(a) Leave: On full pay and allowance, as per the Rules of the Company but not exceeding one month’s leave for every
11 months of service.
(b) Reimbursement of entertainment and/or travelling, hotel and other expenses actually incurred by him in performance
of duties.
(c) The appointment may be terminated by either party giving to the other party ninety days’ notice in writing.
(d) In the event of any dispute or difference arising at any time between Mr. S. R. Potdar and the Company in respect of the
terms of his appointment or the construction thereof, the same will be submitted to and be decided by arbitration in
accordance with the provisions of the Arbitration and Conciliation Act, 1996.

Notice.indd 5 6/17/2011 5:21:32 PM

 EXCEL INDUSTRIES LIMITED

THE REQUIRED DISCLOSURE AS PER SCHEDULE XIII, PART II, SECTION II, CLAUSE 1(B) IS AS STATED BELOW:
I. General Information
(1) Nature of Industry : Manufacture of industrial chemicals, speciality chemicals,
pesticides, intermediates, soil enricher, biotech products and
Organic Waste Converter.
(2) Date or expected date of commencement of : In production since 1960
commercial production
(3) In case of new companies expected date of : N.A.
commencement of activities as per project
approved by financial institutions appearing
in the prospectus
(4) Financial performance based on given : 2010-11
indicators (` lacs)
1. Sales Turnover
(a) Domestic 19188.82
(b) Export 6223.09
2. Profit Before Tax 2035.25
3. Profit After Tax 1430.90
4. Gross Block 21251.31
5. Net Block 9799.58
6. Paid-up Capital 545.28
7. Reserves & Surplus 10536.63
8. Net worth 11081.91
9. EPS 12.30
10. Return on Net worth 12.91%
(5) Export performance and net foreign : Exports 6223.09
exchange collaborations Net Foreign Exchange Earnings (0.66)
(6) Foreign investments or collaborators, if any. : The Company holds 4,68,000 Equity Shares of Hong Kong
$1 each fully paid-up in Wexsam Limited, Hong Kong.
II. Information about the appointee
(1) Background details : Mr. S. R. Potdar was re-appointed as Executive Director of
the Company for a period of three years with effect from
3rd September, 2008 and his term of office as the Executive
Director expires on 2nd September, 2011.
Mr. S. R. Potdar (58 Years) holds a degree in Bachelor
of Technology in Chemical Engineering from the Indian
Institute of Technology and a Post Graduate Diploma in
Industrial Engineering from NITIE, Mumbai. He joined the
Company in 1974 and has been associated with various
functions like Process Development, Project Engineering,
Materials Management and has been a member of the senior
management team of the Company. He was the President in
charge of the Chemicals Business Division of the Company
prior to being appointed as the Executive Director. He has
been responsible for Business Development, Organization
Development and Corporate Management. He has made
valuable contributions to the business and organization during
his long professional association with the Company.

Notice.indd 6 6/17/2011 5:21:32 PM

 (2) Past Remuneration : ` 1,50,000/- p.m. as salary and equivalent amount of
perquisites.
(3) Job Profile and his suitability : Mr. S. R. Potdar is a qualified professional and his
qualifications are very relevant to the business of the
Company. He has acquired relevant experience and expertise
during his long tenure with the Company to contribute in the
areas of Organization Development, Business Development
and Corporate Management.
(4) Remuneration proposed : As stated above in the Explanatory Statement.
(5) Comparative remuneration profile with : The proposed remuneration compares favorably with that
respect to industry, size of the company, being offered to similarly experienced persons from industry
profile of the position and person (In case and the professionals with an entrepreneurial background. The
of expatriates, the relevant details would be remuneration being proposed is considered to be appropriate,
w.e.f. the country of his origin). having regard to factors such as past experience, position
held, present contribution to the Company, age and merits
of the appointee.
(6) Pecuniary relationship directly or indirectly : The appointee has the pecuniary relationship with the
with the Company or relationship with the Company only to the extent of the amount of remuneration
managerial personnel, if any. being proposed to be paid to him.
III. Other Information
(1) Reasons of loss or Inadequate profits : Not Applicable
(2) Steps taken or proposed to be taken for : Not Applicable
improvement
(3) Expected increase in productivity and profits : Not Applicable
in measurable terms.
IV. Disclosures:
(1) Apart from him, Mr. A. C. Shroff, Chairman and Managing Director and Mrs. Usha A. Shroff, Executive Vice Chairperson,
draw the remuneration from the Company.
(2) The required disclosures have been given in the Directors’ Report under the heading “Corporate Governance”,
attached to this Annual Report, under the sub head ‘Remuneration of Directors’.
The draft Agreement referred to in the resolution under Item No. 6 of the Notice will remain open for inspection by the members
at the Registered Office of the Company on any working day between 2.00 p.m. and 4.00 p.m. up to the date of Annual General
Meeting.
The Board commends the resolution for acceptance by the members.
Mr. Potdar is concerned or interested in this resolution. None of the other Directors of the Company is, in any way, concerned
or interested in this resolution.
For and on behalf of the Board of Directors

A. C. SHROFF
Chairman & Managing Director

Registered Office:
184-87, Swami Vivekanand Road,
Jogeshwari (W),
Mumbai-400 102.
Mumbai, 20th May, 2011.

Notice.indd 7 6/17/2011 5:21:32 PM

 EXCEL INDUSTRIES LIMITED

DIRECTORS’ REPORT

TO THE MEMBERS,
Your Directors have pleasure in presenting the 50th Annual Report and the Audited Statement of Accounts of the Company for the
year ended 31st March, 2011.

1. FINANCIAL RESULTS
The salient features of the Company’s working are:
(` in Lacs)
2010-11 2009-10
Gross Profit for the year was 3009.45 2132.57
Less: Depreciation/Amortisation 974.20 992.96
Leaving a net profit before Tax 2035.25 1139.61
Provision for Taxation:
Current Tax (703.00) (126.00)
In respect of earlier year 16.07 (136.27)
Minimum Alternate Tax (Entitlement) — 178.75
Deferred Tax 98.65 588.28 (449.03) 532.55
1446.97 607.06
Add thereto/(reduce therefrom):
Adjustment in respect of earlier years (net) (105.25) 189.53
1341.72 796.59
Add thereto:
Balance brought forward from the previous year 1365.05 1122.80
Leaving a balance available for Appropriation 2706.77 1919.39
Appropriations:
Proposed Dividend 408.96 218.11
Tax on Dividend 66.34 36.23
Transfer to General Reserve 1100.00 300.00
1575.30 554.34
Carried forward to next year 1131.47 1365.05

2. DIVIDEND
Your Directors have recommended a Dividend of 75% amounting to ` 3.75 per equity share of ` 5/- each, including a special
dividend of 25% (` 1.25 per equity share) on the occasion of 50th year as compared to a dividend of 40% (` 2/- per share) in
the previous year.

3. OPERATIONS
During the year under review, the net sales increased from ` 222.32 crores to ` 254.12 crores, registering a growth of 14% and
exports increased from ` 54 crores to ` 60 crores registering an increase of 11%. During the year under review, the Company had
a profit before tax of ` 20.35 crores compared to ` 11.40 crores in the previous year, and had a profit after tax of ` 13.42 crores
compared to ` 7.97 crores in the previous year.

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 4. NEW PROJECTS/EXPANSIONS/IMPROVEMENTS
Capacity for producing Pharma intermediates is being enhanced and certain balancing equipments are being installed to expand
the capacity of existing products and to manufacture new range of products.

5. OUTLOOK
The Company’s chemical products are sold in different market segments like, Agrochemicals, Polymers, Pharma Intermediates,
sequesterants, Mining Chemicals and Biocides, etc. While majority of the products enjoy reasonable market share and capacity
utilization, some products are experiencing maturation, low growth and attrition in market share and competition and inadequate
profitability. The Company is examining ways to add value, improve costs and profitability and, if better replacement products are
possible, to phase these out.

With revival of economy in India and elsewhere, the prices of several raw materials have gone up. Along with rise in price of crude
oil, both the chemicals and energy products derived out of crude oil have started rising. These will need to be carefully monitored
and their impact minimized through techno commercial efforts, and ultimately, wherever feasible, passed on to consumers.
Govt. of India vide its Notification No. 74/2010 dated 7th July, 2010 had levied anti-dumping duty on the product Diethyl
Thiophosphoryl Chloride originating in or exported from People’s Republic of China. The said notification was challenged by one
of the importers in the Gujarat High Court.

The hearing in respect of the said petition took place on 5th May, 2011. We have been advised by our Solicitor that the said petition
was allowed and judgement is stayed till 10th July, 2011. In the said petition, one of the pleas of the petitioner was to quash the
said notification on the basis of judgement rendered by the Hon’ble Supreme Court in another case.

The Environment & Biotech Division is expected to do better, both in terms of Ahmedabad Plant’s performance, as also the OWC
Machine sales.

6. ENVIRONMENT, HEALTH AND SAFETY (EHS)

The Company continues to accord top priority to Environment, Health and Safety systems and strives to improve the performance
through safety audits, training programmes and safety management systems.

7. QUALITY
The Company continues to maintain industry best standards in managing the quality of its products and services and has received
appreciation and awards from its customers.

8. EDUCATION, LEARNING AND HUMAN DEVELOPMENT

The Company has continued the emphasis on development of people with full commitment and has taken steps to provide the
opportunities to learn relevant skills and acquire knowledge. The top management of the Company has taken keen interest in the
training and development activities.

9. INSURANCE
The Company continues to carry adequate insurance cover for all its assets against foreseeable perils like fire, flood, earthquake,
fidelity etc. The Company continues to maintain Consequential Loss (Fire) Policy and the Liability Policy as per the provisions of
Public Liability Act.

10. SUBSIDIARY COMPANY

In accordance with the General Circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit
and Loss Account and other statements of the Subsidiary Company are not being attached with the Annual Report of the Company.
The Company will make available the Annual Accounts of the Subsidiary Company and the related detailed information to any
member of the Company who may be interested in obtaining the same. The Annual Accounts of the Subsidiary Company will

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 also be kept open for inspection at the Registered Office of the Company and are also being posted on the Company’s website:
http://www.excelind.co.in. The Consolidated Financial Statements presented by the Company include the financial results of its
subsidiary company.

11. FIXED DEPOSITS

The amount of fixed deposits from the public and loans from the shareholders at the end of the year under review aggregated
to ` 18,49.80 lacs. 42 Depositors did not claim their deposits after the date on which the deposits became due for payment.
The amount due on such deposits and remaining unclaimed as on 31st March, 2011, was ` 9.79 lacs. It has come down to
` 8.54 lacs as on the date of this Report.

12. DIRECTORS
Mr. R. N. Bhogale and Mr. Dipesh K. Shroff, Directors, will retire by rotation at the ensuing Annual General Meeting of the Company
and, being eligible, offer themselves for re-appointment. The Board of Directors recommends their re-appointment.

13. SOCIAL RESPONSIBILITY

The Company has been supporting and helping activities and organizations contributing the rural development, children
welfare and various social projects. The Company continues to discharge its social responsibilities with the spirit of duty towards
the community.

14. DIRECTORS’ RESPONSIBILITY

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material
departures have been made from the same;
(b) 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 at the end of the financial year
and of the profit of the Company for the year under review;
(c) 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 frauds
and other irregularities; and
(d) they have prepared the annual accounts on a going concern basis.

15. CORPORATE GOVERNANCE

Your Company continues to practice the principles of good Corporate Governance during the year and the Board of directors lays
strong emphasis on transparency, accountability and integrity. Your Company has complied with all the mandatory requirements
of Clause 49 of the Listing Agreement with the Stock Exchanges. Pursuant to Clause 49 of the Listing Agreement, Management
Discussion and Analysis, Corporate Governance Report and the Auditors’ Certificate regarding compliance of the same are part of
this Annual Report.

16. HUMAN RESOURCES

Human Resource Management has always been the focus area for the Company.
The Company continuously strives to upgrade the knowledge and skills of the employees for better performance.
Measures for safety, training and development and welfare of employees receive highest priority.
Human Resource policies and practices are regularly reviewed and revised to suit the employee and organization needs.

10

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 Employee relations continue to be cordial and harmonious.
Your Directors wish to place on record their appreciation for the sincere and devoted efforts of the employees and the management
at all levels.

17. OTHER INFORMATION

The information required 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, and Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of
Employees) Rules, 1975, regarding employees, is furnished in the Annexure to this Report and forms part of this Report.

18. AUDITORS
M/s. S. R. Batliboi & Co., Chartered Accountants, Mumbai will retire at the conclusion of the ensuing Annual General Meeting of
the Company, who, being eligible, offer themselves for reappointment as Auditors of the Company.

19. COST AUDITORS

As per the requirements of the Central Government and pursuant to the provisions of Section 233B of the Companies Act, 1956,
the audit of the Cost Accounts relating to group of products “Insecticides” is being carried out every year. The Company had
appointed Mr. Kishore Bhatia, Cost Auditor, Mumbai to audit the cost accounts for the year 2010-11 i.e. from 1st April, 2010
to 31st March, 2011 for which necessary approval of the Central Government has been received vide their letter No. 52/184/
CAB/1995 dated 19th February, 2010. The Cost Audit Report in respect of Financial Year 2009-10 which was due to be filed with
the Ministry of Corporate Affairs on 27th September, 2010, was filed on 12th August, 2010. The Cost Audit Report in respect of
Financial Year 2010-2011 will be filed on or before the due date i.e. 27th September, 2011.

20. ACKNOWLEDGEMENTS
Your Directors acknowledge with gratitude the support of the shareholders, government authorities, other investors, customers and
suppliers, for the faith reposed in the Company and its management.

For and on behalf of the Board of Directors

A. C. SHROFF
Chairman & Managing Director
Mumbai, 20th May, 2011.

11

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 EXCEL INDUSTRIES LIMITED

ANNEXURE TO DIRECTORS’ REPORT

(UNDER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956)

Disclosures
(A) CONSERVATION OF ENERGY
(a) Energy Conservation Measures implemented in recent past:
• Replacement of 175 TR VAR Machine by 300 TR energy efficient VAR Machine.
• Installation of VFD (Variable Frequency Drives) for Blowers and Cooling water circulation pumps.
• Replacement of low efficiency pumps with high efficiency pumps.
• Installation of Steam Control Valves with Temperature Controller on HOT water tanks for energy efficiency.
• Replacement of Water-ring Vacuum Pumps with Oil Ring Vacuum Pump.
• Replacement of conventional gear boxes by energy efficient Helical Gear Boxes.

(b) Additional Investments and proposals, if any, being implemented for reduction in consumption of energy:
• Replacement of reciprocating Brine Compressor System (130 TR) by energy efficient Screw Compressor System

(204 TR).
• Modification in Steam distribution set up to minimize transmission losses.
• Installation of Anaerobic Digesters in ETP system to get BIO GAS and to help reduce net energy consumption.

(c) Impact of Measures at (a) and (b)

The above measures have resulted into reduction in energy consumption:
• Reduction in steam consumption by 1 Kg/TR in chilled water generation.
• Reduction in electricity consumption by 1kW/TR in brine generation.

(d) Total energy consumption and energy consumption per unit of production as per prescribed Form A:
Current Year Previous Year
(2010-11) (2009-10)
A. Power and Fuel Consumption
1. Electricity
(a) Purchased
Unit (’000 KWH) 20,620 18,084
Total Amount (` in lacs) 11,75.90 9,44.51
Rate/Unit (`) 5.70 5.22

(b) Own Generation

(i) Through Diesel 90 149
Generated Unit (’000 KWH) 3.19 3.21
Units per Ltr. of Diesel Oil 12.71 11.41
Cost/Unit (`) Nil Nil
(ii) Through Steam Turbine/Generator Units

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 Current Year Previous Year
(2010-11) (2009-10)
2. Coal
Qty. (MT) 14,668 13,650
Total Amount (` in lacs) 6,99.32 651.78
Avg. Rate (`/Kg.) 4.77 4.77

3. Fuel
Qty. (MT) 670 374
Total Amount (` in lacs) 1,89.28 79.45
Avg. Rate (`/Kg.) 28.25 21.25

4. Steam Purchased
Qty. (MT) Nil Nil
Total Amount (` in lacs) Nil Nil
Avg. Rate (`/Kg.) N.A. Nil

B. Consumption per ton of production

Current Year (2010-11) Previous Year (2009-10)
Fuel Electricity Fuel Electricity
Kg. ` kwh ` Kg. ` kwh `
1. Phosphorous compounds 150 2536 379 2171 153 2437 364 1941
2. Chemicals 267 4596 867 4949 291 4578 956 4992
3. Organic Manure Nil Nil 64 390 Nil Nil 57 343

(B) TECHNOLOGY ABSORPTION

RESEARCH AND DEVELOPMENT (R & D)
1. Specific areas in which R & D is carried out by the Company:
Process optimization and analytical method development have successfully been accomplished for one specialty
additive in polyester and plastic segment. We expect the commercial supplies for this upcoming product to start in
current year.
A high value phosphorous based intermediate for multiple applications has been developed and approved by one of the
overseas customers. Initial campaign will be taken up for the commercial production in second quarter of the year.
As a part of our ongoing activities towards high value-low volume product range, several new complex entities for an
electronic application have been developed and will be sold in the market in the near future.

2. Benefits derived as a result of the above efforts:

The Company keeps an eye to continuously improve the processes for current products which will improve the
raw material and energy efficiency and reduce the environmental pollution.

3. Future plan of action:

The Company is determined to put more emphasis on widening the product range thereby enhancing the competitiveness
in new and high price specialty molecules. The development of new molecules in pharma/Agro intermediates, chemicals
for plastics, electronic and mining is one of the principal objectives to boost business and to be in competition with
global players.

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 4. Expenditure on R & D for the year 2010-2011:
(` in Lacs)
(a) Capital 57.14
(b) Recurring 252.35
(c) Total 309.49
(d) Total R & D expenditure as a percentage of total turnover 1.22%

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

1. Efforts in brief, made towards technology absorption, adaptation and innovation:
With Extensive efforts on conservation of material and energy inputs, significant results were obtained in the area of
effluent management, enabling the Company to retain its competitiveness.

2. Benefits derived as a result of the above efforts:

The Company has expanded the range of specialty chemicals with new entry in areas like electronic materials and
polymer additives.

3. Technology imported during the last five years:

During the stated five year period, the Company has not imported any technology.

(C) FOREIGN EXCHANGE EARNINGS AND OUTGO

(a) Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and
services and export plans:
• The Company has completed the process of registration under REACH for some of its products. This will help
in ensuring that the existing exports to Europe continue without any hindrance as well as give access to new
customers.
• Efforts are being made for geographical diversification for the existing product range. Initiatives are being taken to
extend the range of polymer inputs and other specialty chemicals manufactured by the Company.

(b) Total foreign exchange earned and used:

(` in Crores)
Used 64.59
Earned 63.93

For and on behalf of the Board of Directors

A. C. SHROFF
Chairman & Managing Director
Mumbai, 20th May, 2011.

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 ANNEXURE TO 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 year ended 31st March, 2011.

Name of the Designation/ Remuneration Qualifications Experience Date of Age Particulars of last
Employee Nature of duties ` Years Commencement of Years employment
Employment Employer, last post
and period for which
post held

A. C. Shroff Chairman & 75,60,706/- B.Sc. 45 01.09.1965 66 —

Managing
Director

Usha A. Shroff Executive Vice 70,71,287/- M.Com 43 01.11.1968 64 —

Chairperson

S. R. Potdar Executive 60,58,586/- B.Tech (Chem), 36 12.10.1974 58 —

Director P.G.D.I.E

Notes: 1. Remuneration mentioned above includes salary, allowances, commission, taxable value of perquisites, Company’s contribution
to Provident Fund and Superannuation Fund but does not include contribution/provision towards Gratuity Fund.

2. The employment of Mr. A. C. Shroff, Mrs. Usha A. Shroff and Mr. S. R. Potdar is contractual. The period of employment in
respect of Mr. A. C. Shroff and Mrs. Usha A. Shroff is five years and is three years in respect of Mr. S. R. Potdar.

3. None of the employees is related to each other except Mr. A. C. Shroff and Mrs. Usha A. Shroff.

For and on behalf of the Board of Directors

A. C. SHROFF
Chairman & Managing Director
Mumbai: 20th May, 2011

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 EXCEL INDUSTRIES LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

1. BUSINESS REVIEW
1.1 Business Segment – Chemicals Business Division
(a) Industry structure and development:
Company’s products are the inputs to various big and small industries in the areas of Agrochemicals, Pharmaceuticals,
Commodity and Specialty Engineering polymers, Water Treatment Chemicals, Mining Chemicals, Soaps and Detergents
and Dyes. The Indian Industry which was not too badly impacted in the first place by the recession set in 2009 in
Europe and the USA certainly reasserted its strength and continued to grow. There are very few companies in India
manufacturing the products of the Company in competition and the Company, like in the past, continues to pioneer
and introduce new specialty chemicals. However, the real competition comes from the continuously increasing
cheaper imports from China. Besides in the domestic market, the Company encounters stiff competition in the third
countries also.
The Indian industry is dependant on China for the supply of various basic raw materials and after importing and
processing them, has to sell the end products in competition with Chinese producers of the same end use products.
This results in an inherent vulnerability owing to the difference in the prices of the raw materials to the Indian
Industry as against to the Chinese producers and to the ability and practice of the Chinese Government to influence
by imposing export restrictions and fiscal duties on export. In several areas, the cost of production is not transparent
and hence the Chinese system is considered as a “non-market economy”. Citing these factors and proving, with
large amount of data and analysis, that large scale dumped imports of the Agrochemical intermediates and one
of Company’s main products, DETPC were indeed hurting the Indian Industry, the Company was successful in
getting the Government of India to impose Anti Dumping Duty on the import of DETPC from China. The Company
acknowledges that this move from the Government has helped it increase the capacity utilization compared to the
previous few years.
Generally, the Indian producers have had to match the prices with the low priced Chinese suppliers in order to retain
the customers. Whereas the prices in the Water Treatment Chemicals area continue to be low, there is a marginal
increase seen as a trend in the prices of Agrochemical intermediates. There is a sharp increase in the prices of crude
oil and hence petrochemical derivatives and in the cost of electricity. The Company thus operates in an environment
which continuously challenges its cost and price management.

(b) Opportunities and Threats:

The positive trend in the agricultural production is the real opportunity for the Company. Near complete recovery of the
western markets from the recession and increased production and consumption levels will call for increased supplies
of intermediates. The Company also has several new products emerging out of its R & D laboratories and looks to
commercializing the same.
The consumers of DETPC have appealed to the appropriate authorities and in Courts against the imposition of Anti
Dumping Duty (ADD) on the product imported from China. The Company has taken appropriate steps to represent its
case for defending the ADD. In the event of a decision adverse to the Company’s interests, dumping imports from
China may once again recommence affecting Company’s Capacity utilization.

(c) Segment wise performance and outlook:

The country experienced a good monsoon this year and attained new records in agricultural production. The
Agrochemicals Industry accordingly saw healthy demand growth and the Company was able to support with its
intermediates. The Polymer industry too recovered well from the effects of recession and achieved improved productions
over the previous year. In the Water Treatment Chemicals area, both capacity utilization and the price realization

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 suffered during the year. There is a sustained demand for the export of the Mining Chemical that the Company has
developed. There was price reduction gained in Company’s few major raw materials but the compulsion to reduce
end product prices took away a lot more than the advantage that accrued. The main advantage was derived out of the
improved volumes of production which also helped the Company to achieve improved specific consumptions of raw
materials and energy. The production volumes mainly helped the Company present better financial results.
The monsoon forecast for the season 2011 is also one of normal and the positive trends in the growth of agricultural
production is likely to continue. The Company is well equipped to meet the growing demands thanks to its existing
capacities and is also experiencing sustained demands from its export customers. The Company is endeavoring to
expand its product range in the Pharma intermediates sector and is receiving encouraging response from the potential
customers. The severe competition in the Water Treatment Chemicals range continues to be a cause of concern.
Riding on the high price of crude oil and based on other market conditions, prices of many of Company’s raw
materials like Phenol, Acetic Acid, Chlorine and Caustic Soda, Sulphur etc. have all been rising sharply in the first
quarter of this financial year and it may not be possible for the Company to pass on the increases to the customers.
Overall, the outlook is one of cautious optimism and the Company, barring unforeseen circumstances, hopes to retain
its position in the financial year 2011-12.

(d) Risks and concerns:

Prices of major basic raw materials like Caustic Soda and Chlorine, Sulphur, Acetic Acid, Phenol have all been
rising very sharply since the beginning of this financial year. Despite the bountiful Sugar cane crop, the prices of
Ethanol are ruling higher than in the previous year. Coal and electricity have also become costlier. The production
of Chlorpyriphos, the major crop protection chemical manufactured both in India and overseas and which consumes
DETPC is seriously affected due to the reduced availability over a long period of its other intermediate. This might
affect the total off take of our intermediate. Maximizing capacity utilization is the key to the profitability for the
Company and these extraneous factors have to be monitored and addressed suitably.

1.2 Business Segment – Environment & Biotech Division

(a) Industry structure and Development:
The Division is engaged in the Business of Organic Solid Waste Management. The Company’s core competence is
to provide waste treatment solution for the organic component of the Solid Waste. There is increasing awareness of
the problem created because of the improper management of the Municipal and other Solid Waste especially with
respect to its adverse environment impact.
The Company has developed good technology for organic waste composting. It operates its own plant at Ahmedabad
and has also licensed its technology to several organizations.
Several new private sector players are entering the business to offer integrated solutions like collection,
transportation, treatment and final disposal of the Municipal Solid Waste (MSW) but not all of them are in possession
of technology appropriate for large scale composting and they would look to associate with the Company for this
part of the project.

(b) Opportunities and Threats:

Running out of capacity of the existing dumping sites for MSW and inability to find and set up newer sites because of
unavailability of land or stiff opposition from people at large, the civic bodies are compelled to look at newer and more
comprehensive solutions and this provides challenging opportunity for private sector players to provide appropriate
solutions since the “Public Private Partnership” (PPP) models are now gaining wide acceptance.
The integrated treatment facility aiming to provide treatment & recycle solution for most of the components of
Municipal Solid Waste (MSW) invariably requires a large capital cost outlay and needs financial support & incentives
and conducive policies which have been very slow in coming.

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 The division is exploring the possibility of recovering Energy out of Municipal Solid Waste in the form of bio-gas and
fuel pellets.
The Company is also looking to the extension of the business to other waste treatment streams like industrial wastes
and other wastes.
Although inter ministerial task forces have recommended use of compost along with synthetic fertilizers since long,
it is only recently that as per the Government directives, some fertilizer companies are coming forward for marketing
the compost. This will help in achieving better volume of sales for better capacity utilization.
The Division is developing its strategy to explore the export market for the product and its value added formulations
to fetch better price.
The Organic Waste Converter (OWC), the equipment developed by the Company for ‘at source treatment’ offers major
advantage to the bulk generators of organic waste and is receiving encouraging response from various sectors. The
Company is working to grow this business in coming years and is attending to issues in manufacturing, marketing
and after sales service and strengthening the organization and resources accordingly.

(c) Segment wise performance and outlook:

The tie up with the fertilizer companies has resulted in increase of sales of the compost. Quantity of the compost
sold from Ahmedabad Celrich plant is substantially more than previous year. Improved capacity utilization and sale of
bio-cultures has improved the performance of the Ahmedabad compost plant.
In case of Organic Waste Converter business, efforts were taken to standardize the components and the process of
manufacturing. Internal control system to review and control the expenditure and improve cash flow and sales has
resulted in better sales and contribution of the product. The sales of the product improved in a healthy manner over
the previous year.
In the previous year, the Company had entered into an agreement with a Mauritian company for Technology Transfer
and Project Management Services. The project will be completed by the 2nd quarter of this year. We are fulfilling our
commitments as per their requirements and the client has paid the fees accordingly.

(d) Risks and Concerns:

Compost: The production of the compost is all over the year whereas the demand is seasonal. Also the market for
compost is far away in rural areas, necessitating large transport cost. Hence large inventory has to be carried till the
season. However, we are trying to explore the export market to smoothen the demand and supply fluctuation.

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 EXCEL INDUSTRIES LIMITED

CORPORATE GOVERNANCE REPORT

1. Company’s Philosophy on the Code of Governance

Corporate Governance primarily involves transparency, complete disclosure, independent monitoring of the state of affairs
and being fair to all stakeholders. The Corporate Governance Code has also been incorporated in Clause No. 49 of the Listing
Agreement of the Stock Exchanges.
The objective of your Company is not only to meet the statutory requirements of the code but to go well beyond it by
instituting such systems and procedures as are in accordance with the latest global trend of making management completely
transparent and institutionally sound.
Your Company has always believed in the concept of good Corporate Governance involving transparency, empowerment,
accountability and integrity with a view to enhance stakeholder value. The Company has professionals on its Board of
Directors who get actively involved in the deliberations of the Board as well as Committees of Directors on all important
policy matters.

2. Board of Directors
The Board of Directors comprises of three Whole-time Directors and seven Non-Executive Directors.
The Company has obtained the requisite disclosures from the Directors in respect of their directorship in other companies
and membership in committees of other companies. Composition of the Board of Directors and their attendance at the Board
Meetings during the year and at the last Annual General Meeting as also number of other directorships/memberships of
committees of other companies are as under:

NAME CATEGORY NO. OF ATTENDANCE NO. OF NO. OF OTHER

BOARD AT LAST DIRECTORSHIPS BOARD
MEETINGS AGM IN OTHER COMMITTEES
ATTENDED PUBLIC LIMITED OF WHICH HE/
DURING COMPANIES SHE IS MEMBER/
2010-11 INCORPORATED CHAIRPERSON
IN INDIA

Mr. A. C. Shroff Promoter — Executive 7 Yes 7 2

Chairman & Managing
Director

Mrs. Usha A. Shroff Promoter — Executive 7 Yes 7 3

Executive Vice Chairperson

Mr. S. R. Potdar Executive 7 Yes 2 Nil

Executive Director

Mr. Atul G. Shroff Promoter — Non-Executive 4 Yes 4 5

Mr. R. N. Bhogale Independent — Non-Executive 6 Yes 1 Nil

Mr. H. N. Motiwalla Independent — Non-Executive 7 Yes 5 1

Mr. P. S. Jhaveri Independent — Non-Executive 5 Yes 4 4

Mr. Dipesh K. Shroff Promoter — Non-Executive 7 Yes 11 1

Mr. M. B. Parekh Independent — Non-Executive 5 Yes 4 Nil

Mr. N. B. Sathe Independent — Non-Executive 4 No Nil Nil

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 The Company held meetings of its Board of Directors during the year on the following dates.

21st May, 2010 25th June, 2010 19th July, 2010 8th September, 2010
29th October, 2010 21st January, 2011 25th March, 2011

3. Particulars of the Directors seeking Appointment/Reappointment at the forthcoming Annual General Meeting

NAME Of ThE DIRECTOR MR. R. N. BhOGALE

Date of Birth 08-02-1955

Date of Appointment 06-12-2001

Expertise in specific functional areas Engineer entrepreneur with wide experience in auto components and
kitchenware industry.

Qualifications B.E (Mech)

Other Public Companies in which Directorship held Nirlep Appliances Ltd.

Other Public Companies in which membership of Committees Nil

of Directors held

No. of Shares held on 31st March, 2011 Nil

NAME Of ThE DIRECTOR MR. DIPESh K. ShROff

Date of Birth 03-02-1960

Date of Appointment 03-09-2003

Expertise in specific functional areas Industrialist with vast experience in Chemicals and Agrochemicals
Industry.

Qualifications Diploma in Civil Engineering. Completed Owners’/Presidents’

Management Program at Harvard Business School, Boston, USA.

Other Public Companies in which Directorship held Agrocel Industries Limited

Excel Crop Care Limited
Excel Industries Limited(Australia) Pty. Ltd., Australia
Excel Industries Euro N.V. Belgium
Excel Bio Resources Ltd.
Hyderabad Chemical Limited
Hyderabad Chemicals Product Limited
Kutch Crop Services Limited
Neo Seeds India Ltd.
Oasis Agritech Limited
Shroff Engineering Limited
Transpek Industry Limited
TML Industries Ltd.

Other Public Companies in which membership of Committees Member of Audit Committee of Transpek Industries Ltd.
of Directors held

No. of Shares held on 31st March, 2011 8597

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 4. No. of Shares held by Non-Executive Directors as on 31st March, 2011

Name of the Director(s) Shares Held (No.)

Mr. Atul G. Shroff 59,784
Mr. Dipesh K. Shroff 8,597

Other Non-Executive Directors do not hold any shares in the Company as on 31st March, 2011.

5. Audit Committee
The role of the Audit Committee is to supervise the Company’s reporting process and disclosure of its financial information,
to approve appointment of CFO, to recommend the appointment of Statutory Auditors, Cost Auditors and Internal Auditors
and fixation of their remuneration, to review and discuss with the Auditors about internal control systems, the scope of Audit
including the observations of the Auditors, adequacy of the internal control systems, major accounting policies, practices
and entries, compliances with Accounting Standards and Listing Agreement with the Stock Exchanges and other legal
requirements concerning financial statements and related party transactions, if any, to review the Company’s financial and
risk management policies and discuss with the Internal Auditors any significant findings for follow-up thereon and to review
the Quarterly, Half Yearly and Annual Financial Statements before they are submitted to the Board of Directors.
The Minutes of the Audit Committee Meetings are circulated to the Members of the Board, discussed in the Board Meetings
and taken note of.
The Company has complied with the requirements of Clause 49(II)(A) of the Listing Agreement as regards the composition
of the Audit Committee.
The Audit Committee of the Board of Directors of the Company comprised of the following four Members as on 31st March,
2011:

Mr. H. N. Motiwalla, Chairman Independent, Non-Executive Director

Mrs. Usha A. Shroff, Member Promoter, Executive Vice Chairperson
Mr. P. S. Jhaveri, Member Independent, Non-Executive Director
Mr. R. N. Bhogale, Member Independent, Non-Executive Director

The Secretary of the Company acts as the Secretary to the Committee.

The Audit Committee met on the following dates during the last financial year.
21st May, 2010, 19th July, 2010, 29th October, 2010 and 21st January, 2011.
Attendance at the Audit Committee Meetings during the last financial year was as follows:

NAME OF DIRECTORS NO. OF MEETINGS HELD NO. OF MEETINGS ATTENDED

Mr. H. N. Motiwalla 4 4
Mrs. Usha A. Shroff 4 4
Mr. P. S. Jhaveri 4 3
Mr. R. N. Bhogale 4 4

Audit Committee meetings are also attended by senior Finance and Accounts Executives and Internal Auditors, as and when
required. Statutory Auditors and Cost Auditors of the Company are also invited to the meetings.

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 6. Remuneration Committee
Terms of reference and composition:
The broad terms of reference of the Company’s Remuneration Committee are to determine and recommend to the Board and
the members of the Company, the remuneration payable to Whole-time Directors, to determine and advise the Board for the
payment of annual increments and commission to the Whole-time Directors and to determine and recommend policy for
retirement benefits payable to its Whole-time Directors.
The Remuneration Committee comprised of the following three Members as on March 31, 2011:
Mr. H. N. Motiwalla, Chairman Independent, Non-Executive Director
Mr. R. N. Bhogale, Member Independent, Non-Executive Director
Mr. P. S. Jhaveri, Member Independent, Non-Executive Director

Meetings of the Remuneration Committee were held on 19th July, 2010 and 21st January, 2011. Attendance at the
Remuneration Committee Meetings during the last financial year was as follows:
NAME OF DIRECTORS NO. OF MEETINGS HELD NO. OF MEETINGS ATTENDED
Mr. H. N. Motiwalla 2 2
Mr. R. N. Bhogale 2 2
Mr. P. S. Jhaveri 2 1

7. Remuneration of Directors:
The Non Executive Directors are paid sitting fees for meetings of Directors and Committees of Directors and commission if
any, as approved by the members.
The Company pays remuneration to its Chairman & Managing Director, Executive Vice Chairperson and Executive Director by
way of salary, commission, perquisites and allowances. Salary is paid within the range as approved by the Shareholders. The
Board, on the recommendations of the Remuneration Committee, approves annual increments to the Whole-time Directors.
Commission of Whole-time Directors is range bound not exceeding 24 months salary and is calculated with reference to the
net profits of the Company in a particular financial year and is determined by the Board of Directors at the end of the financial
year based on the recommendations of the Remuneration Committee, subject to the overall ceiling as stipulated in Sections
198, 309 and Schedule XIII of the Companies Act, 1956.
Given below are the details of remuneration paid to the Directors during the financial year 2010-11.
SITTING FEES FOR BOARD/ SALARIES AND OTHER COMMISSION TOTAL
DIRECTORS COMMITTEE MEETINGS PERQUISITES
(`) (`) (`) (`)
Mr. A. C. Shroff N. A. 46,35,706 29,25,000 75,60,706
Mrs. Usha A. Shroff N. A. 43,71,287 27,00,000 70,71,287
Mr. S. R. Potdar N. A. 38,08,586 22,50,000 60,58,586
Mr. Atul G. Shroff 20,000 N. A. N.A. 20,000
Mr. R. N. Bhogale 60,000 N. A. N.A. 60,000
Mr. H. N. Motiwalla 95,000 N. A. N.A. 95,000
Mr. P. S. Jhaveri 45,000 N. A. N.A. 45,000
Mr. Dipesh K. Shroff 65,000 N. A. N.A. 65,000
Mr. M. B. Parekh 25,000 N. A. N.A. 25,000
Mr. N. B. Sathe 20,000 N. A. N.A. 20,000

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 The employment of the Chairman & Managing Director, Executive Vice Chairperson and Executive Director is contractual. The
employment is for a period of five years in respect of the Chairman & Managing Director and Executive Vice Chairperson and
is for a period of three years in respect of the Executive Director and terminable by either party giving 3 months notice.
Severance compensation is payable to the Whole-time Directors, if their office is terminated before the contractual period,
subject to the provisions and limitations specified in Section 318 of the Companies Act, 1956. There are no stock options
and performance linked incentive along with the performance criteria to the Directors.
The Company offers benefits to retiring Whole-time Directors as per a scheme in force duly approved by the shareholders.
The quantum of benefits in each individual case is decided by the Board of Directors at their discretion.

8. Shareholders’/Investors’ Grievance Committee

The Shareholders’/Investors’ Grievance Committee looks into the Investors’ complaints, if any, and to redress the same
expeditiously.
The Shareholders’/Investors’ Grievance Committee comprised of the following four Members as on 31st March, 2011:
Mr. Dipesh K. Shroff, Chairman Promoter, Non-Executive Director
Mrs. Usha A. Shroff, Member Promoter, Executive Vice Chairperson
Mr. S. R. Potdar, Member Executive Director
Mr. H. N. Motiwalla, Member Independent, Non-Executive Director
Mr. S. K. Singhvi, Company Secretary, is also designated as the Compliance Officer.
The Shareholders’/Investors’ Grievance Committee met on the following dates during the last financial year.
21st May, 2010, 19th July, 2010, 29th October, 2010, 1st December, 2010, 21st January, 2011 and 25th March, 2011.
Attendance at the Shareholders’/Investors’ Grievance Committee Meeting during the last financial year was as follows:
NAME OF DIRECTORS NO. OF MEETINGS HELD NO. OF MEETINGS ATTENDED
Mr. Dipesh K. Shroff 6 6
Mrs. Usha A. Shroff 6 6
Mr. S. R. Potdar 6 6
Mr. H. N. Motiwalla 6 6
During the year, 14 complaints were received from the investors, all of which were replied/resolved. There are no pending
share transfers as on 31st March, 2011.

9. General Meetings
Location and time of the last three Annual General Meetings
YEAR LOCATION DAY/DATE TIME NO. OF SPECIAL
RESOLUTIONS
2007-08 Rama Watumull Auditorium, Thursday, 3.00 p.m. 2
Kishinchand Chellaram College, 4th September, 2008
Dinshaw Wacha Road, Churchgate,
Mumbai 400 020.
2008-09 -do- Monday, 3.00 p.m. 1
24th August, 2009
2009-10 -do- Monday, 3.00 p.m. Nil
19th July, 2010

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 During the year the Company has passed a Special Resolution through Postal Ballot.
Special Resolution under Section 314(1B) of the Companies Act, 1956 for seeking consent of the Members of the Company
to the appointment of M.r Ravi A. Shroff, a relative of Directors of the Company to hold an office or a place of profit in the
Company as Senior Vice President (Business Development) subject to approval of the Central Government was passed
through Postal Ballot Process. Mr. Prashant Diwan, Practicing Company Secretary, was appointed Scrutinizer to conduct the
Postal Ballot Voting Process. For the Postal Ballot, the procedure laid down by Section 192A of the Companies Act, 1956, and
the rules made thereunder was followed. The Special Resolution was approved by the shareholders with requisite majority.
The Particulars of Postal Ballot Voting are as follows:
REPRESENTINGFA CE % OF VALID
VALUE OF SHARES VOTES
(`)
Votes in favour of the Resolution 2,44,11,310 99.85
Votes against the Resolution 37,645 0.15
2,44,48,955 100.00
10. Disclosures
• Related Party Transactions:
Related Party Transactions under Clause 49 of the Listing Agreement are defined as the transactions of the Company of
a material nature, with its promoters, the directors or the management, their subsidiaries or relatives, etc. that may have
potential conflict with the interests of the Company at large.
Among the related party transactions are the contracts or arrangements made by the Company from time to time with
companies in which the Directors are interested. All these contracts or arrangements are entered in the Register of
Contracts under Section 301 of the Companies Act, 1956 and the register is placed before the Board from time to time.
There were no material transactions with related parties during the year 2010-11 that are prejudicial to the interest
of the Company.
• Statutory Compliance, Penalties and Strictures:
The Company has complied with the requirements of the Stock Exchanges/SEBI and Statutory Authorities on all matters
related to capital markets during the last year. There are no penalties or strictures imposed on the Company by the Stock
Exchange or SEBI or any Statutory Authorities relating to the above.
The Company has complied with all the mandatory requirements of Clause 49 of the Listing Agreements. The Company
does not have Whistle Blower Policy. No employee of the Company has been denied access to the Audit Committee of
the Company.
11. General Shareholder Information
• Means of Communication:
— The quarterly and half-yearly results of the Company are generally published in the dailies viz. DNA (English) and
Daily Sagar (Marathi) which have wide readership in Mumbai.
— The financial results are also displayed on the Company’s Website: http://www.excelind.co.in
— Management Discussion and Analysis forms part of the Annual Report.
• Annual General Meeting:
Date and Time : Friday, the 22nd July, 2011 at 3.00 p.m.
Venue : Rama Watumull Auditorium,
Kishinchand Chellaram College,
Dinshaw Wacha Road, Churchgate,
Mumbai-400 020.

24

Corporate.indd 24 6/17/2011 5:34:36 PM

 • Financial Year : Year ending March 31
• Dates of Book Closure : Saturday, 16th July, 2011 to Friday, 22nd July, 2011 (both days
inclusive).
• Listing on Stock Exchanges : The Company’s shares are listed on The Bombay Stock
Exchange Ltd., (BSE) and The National Stock Exchange of India
Ltd. (NSE)
• Dividend payment date : On or after 26th July, 2011
• Stock Codes (for shares):
The Stock Exchange, Mumbai (Physical Segment) : 650
The Stock Exchange, Mumbai (Demat Segment) : 500650
National Stock Exchange of India Limited : EXCELINDUS
Demat ISIN Number in NSDL and CDSL : INE 369A01029
• Market Price Data :
Bombay Stock Exchange (in `)
high Low
April-2010 79.00 58.00
May-2010 71.95 63.10
June-2010 96.50 65.50
July-2010 110.90 86.00
Aug-2010 119.65 96.00
Sept-2010 118.00 101.10
Oct-2010 127.80 102.00
Nov-2010 118.50 85.00
Dec-2010 92.95 78.00
Jan-2011 97.00 75.20
Feb-2011 88.95 68.00
Mar-2011 81.95 72.30
• Share Price Movements :
Share Price Movement for the period April, 2010 to March 2011 Excel Industries Limited vs BSE Sensex.

25

Corporate.indd 25 6/17/2011 5:34:36 PM

 Share Transfer System : The share transfer function is carried out by the Registrars and Transfer Agents-Link Intime
India Pvt. Ltd. Share transfers in physical form can be lodged at their office at C-13, Pannalal Silk Mill Compound,
L.B.S. Marg, Bhandup (West), Mumbai 400 078 (Tel: 2596 3838 & 25946970) or their Mumbai Office at
203 Davar House (Next to Central Camera Building), 197/199 D N Road, Fort, Mumbai 400 001. Tel.: 22694127.
Share transfers and other share related requests are considered for approval every fortnight by the Company’s Officials
who are authorized in this behalf.
• Distribution of Shareholdings as on 31st March, 2011
CATEGORY NO. OF PERCENTAGE NO. OF SHARES PERCENTAGE
SHAREHOLDERS
1 - 500 12444 88.80 1732279 15.88
501 - 1000 824 5.88 612826 5.62
1001 - 2000 383 2.73 561963 5.15
2001 - 3000 129 0.92 326792 3.01
3001 - 4000 47 0.34 165088 1.51
4001 - 5000 44 0.31 205635 1.89
5001 - 10000 60 0.43 447494 4.10
Above 10000 83 0.59 6853553 62.84
Total 14014 100.00 10905630 100.00

• Categories of Shareholders as on 31st March, 2011

CATEGORY NO. OF VOTING STRENGTH NO. OF SHARES
SHAREHOLDERS %
Promoters 55 40.39 4404608
Life Insurance Corporation of India 1 9.29 1012799
Other Insurance Companies 0 0.00 0
Individuals 13592 46.11 5027469
Companies 230 3.56 388428
Non-Resident Individuals 108 0.61 66937
Indian Banks and Mutual Funds 15 0.03 3780
Foreign Institutional Investors & Foreign Banks 13 0.01 1609
Total 14014 100.00 10905630

• Dematerialisation of Shares and Liquidity:

93.29% of the Company’s share capital is held in dematerialised form as on 31st March, 2011. The Company’s shares
are regularly traded on The Bombay Stock Exchange Ltd., (BSE) and The National Stock Exchange of India Ltd., (NSE).
• Factory Locations:
(a) Plot No.112, M.I.D.C. Industrial Area, (c) Near Sewage Farm,
Dhatav, Roha, Narol Sarkhej Octroi Naka,
Dist. Raigad-402 116. Baherampura, Ahmedabad-380 022.
(b) D-9, M.I.D.C., Lote Parshuram,
Tal: Khed, Dist. Ratnagiri-415 722.

26

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 • Address for correspondence:
Excel Industries Limited,
184-87, Swami Vivekanand Road,
Jogeshwari (West),
Mumbai-400 102.
Tel.: 6646 4200, 2678 4255 & 2678 8258
Fax.: 6696 3514, 2678 3657
• Address for correspondence for share related work:
LINK INTIME INDIA PVT. LTD.,
C-13, Pannalal Silk Mills Compound,
L.B.S. Marg, Bhandup (W),
Mumbai 400 078.
Tel: 91 22 2596 3838, 91 22 25946970
help Desk contact
E-mail: [email protected]
• E-mail Address for Investor Grievances:
[email protected]
12. Managing Director’s Declaration on Code of Conduct and Ethics:
The Board of Directors of the Company has laid down Code of Conduct and Ethics (The Code) for the Company’s Directors
and Senior Employees. All the Directors and the Senior Employees covered by The Code have affirmed compliance with the
Code on an annual basis.
For and on behalf of the Board of Directors

A. C. SHROFF
Chairman & Managing Director
Mumbai, 20th May, 2011.

AUDITORS’ CERTIfICATE
TO THE MEMBERS OF
EXCEL INDUSTRIES LIMITED
We have examined the compliance of conditions of Corporate Governance by Excel Industries Limited, for the year ended on
31 March 2011, as stipulated in clause 49 of the Listing Agreement of the said Company with stock exchange(s).
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We 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.
for S.R. BATLIBOI & CO.
Firm registration number: 301003E
Chartered Accountants.
per Vijay Maniar
Partner.
Membership No. 36738
Mumbai, 20th May, 2011.

27

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 EXCEL INDUSTRIES LIMITED
TEN-YEAR HIGHLIGHTS

(` in lacs)

2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02

I. CAPITAL ACCOUNTS

A. Share Capital 545.28 545.28 545.28 545.28 545.28 545.28 545.28 545.28 545.28 1090.56

B. Reserves 10536.63 9670.21 9127.96 9147.61 9007.41 8936.96 8906.39 9049.67 9122.35 13635.45

C. Shareholders’ Funds 11081.91 10215.49 9673.24 9692.89 9552.69 9482.24 9451.67 9594.95 9667.63 14726.01
(A+B)

D. Deferred Government
Grants — — — — — — — — — 105.29

E. Borrowings 5181.78 6011.05 7523.50 7358.85 7280.99 10622.07 10035.26 10295.44 11092.37 21230.43

F. Deferred Tax Liability

(Net) 1369.61 1468.26 1019.22 993.70 919.55 886.31 1045.36 1836.60 1811.33 2670.22

G. Capital Employed 17633.30 17694.80 18215.96 18045.44 17753.23 20990.62 20532.29 21726.99 22571.33 38731.95
(C+D+E+F)

H. Gross Block 21251.31 21507.89 21474.10 20721.74 19127.27 19014.61 17857.91 18192.06 17759.12 24672.04

I. Net Block 10096.98 10440.01 10650.45 10975.93 10408.27 10459.51 10641.02 11109.25 11607.68 16640.15

J. Debt-Equity Ratio 0.47:1 0.59:1 0.78:1 0.76:1 0.76:1 1.12:1 1.06:1 1.07:1 1.15:1 1.44:1

II. REVENUE ACCOUNTS

A. Gross Revenue 29647.53 25497.38 26963.53 25412.91 22717.31 23543.59 25698.01 21102.42 21458.25 48828.95

B. Profit/(Loss) before
Taxes 2035.25 1139.61 137.08 593.50 198.04 (280.13) (487.44) 64.62 419.47 1090.11

% of Gross Revenue 6.86% 4.46% 0.51% 2.34% 0.87% -1.19% -1.90% 0.31% 1.95% 2.23%

C. Profit/(Loss) after Taxes 1430.90 743.33 74.49 421.73 131.80 (172.08) (79.39) 31.95 316.37 725.11

% of Gross Revenue 4.82% 2.91% 0.28% 1.66% 0.58% -0.73% -0.31% 0.15% 1.47% 1.49%

D. Return on Shareholders’
Funds % 12.91% 7.27% 0.77% 4.35% 1.38% -1.81% -0.84% 0.33% 3.27% 4.92%

III. EQUITY SHAREHOLDERS’

EARNINGS

A. Earning per Equity

Share* ` 12.30 7.30 0.40 3.62 1.23 (0.28) (0.10) 0.46 1.59 5.38

B. Dividend per Equity

Share* ` 3.75 2.00 0.50 1.00 0.50 — 0.50 1.00 1.50 3.00

C. Equity Dividend ` 408.96 218.11 54.53 109.06 54.53 — 54.53 109.06 163.58 327.17

D. Net Worth per Equity

Share* ` 101.62 93.67 88.70 88.88 87.59 86.95 86.87 87.98 88.65 135.03

E. Market Rate as on
31st March ` 74.15 58.25 26.45 53.15 41.17 58.90 60.05 74.10 64.45 65.90
* Face Value of Equity Share - ` 5/- for FY 2002-03 and subsequent years, ` 10/- for earlier year.

28

Ten Years Highlight.indd 28 6/17/2011 5:37:20 PM

 EXCEL INDUSTRIES LIMITED

SUMMARISED BALANCE SHEET

As at 31st March
2011 2010
` ` ` `
(in lacs) (in lacs) (in lacs) (in lacs)
WHAT THE COMPANY OWNED
1. FIXED ASSETS
Gross Block 21548.71 21852.77
Less: Depreciation 11451.73 11412.76
10096.98 10440.01
2. INTANGIBLE ASSETS 88.45 85.52
3. INVESTMENTS 1362.01 996.15
4. NET CURRENT ASSETS 6085.86 6173.12
17633.30 17694.80

WHAT THE COMPANY OWED

1. BORROWINGS 5181.78 6011.05
2. NET WORTH
(Shareholders’ Equity)
Represented by
(i) Share Capital 545.28 545.28
(ii) Reserves 10536.63 9670.21
11081.91 10215.49
3. DEFERRED TAX LIABILITY (NET) 1369.61 1468.26
17633.30 17694.80

SUMMARISED PROFIT AND LOSS ACCOUNT

For the year ended 31st March 2011 2010
` ` ` `
(in lacs) (in lacs) (in lacs) (in lacs)
WHAT THE COMPANY EARNED
From Sales 27254.14 23554.46
From Export Earnings 194.06 156.18
From Other Sources 2199.33 1786.74
2393.39 1942.92
29647.53 25497.38
WHAT THE COMPANY SPENT
On Manufacturing Costs 22133.57 19335.71
On Employees 3939.29 3311.67
Interest on Loans 565.22 717.43
Depreciation 974.20 992.96
27612.28 24357.77
OPERATING PROFIT 2035.25 1139.61

29

Ten Years Highlight.indd 29 6/17/2011 5:37:20 PM

 EXCEL INDUSTRIES LIMITED

AUDITORS’ REPORT

TO
THE MEMBERS OF
EXCEL INDUSTRIES LIMITED
1. We have audited the attached balance sheet of Excel Industries Limited (‘the Company’) as at 31 March 2011 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.
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) (‘the Order’) issued by the Central Government of
India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 (‘the Act’), we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred 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 purposes of our audit;
ii. 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 those books;
iii. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the
books of account;
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 sub-section (3C) of Section 211 of the Act;
v. On the basis of the written representations received from the directors, as on 31 March 2011, and taken on record by the
Board of Directors, we report that none of the directors is disqualified as on 31 March 2011 from being appointed as a
director in terms of clause (g) of sub-section (1) of Section 274 of the Act.
vi. 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 Act, in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the balance sheet, of the state of affairs of the Company as at 31 March 2011;
(b) in the case of the profit and loss account, of the profit for the year ended on that date; and
(c) in the case of cash flow statement, of the cash flows for the year ended on that date.

For S. R. BATLIBOI & CO.

Firm registration number: 301003E
Chartered Accountants

per Vijay Maniar

Partner
Membership No.: 36738

Place : Mumbai
Date : 20 May 2011

30

Excel-Auditors Report.indd 30 6/17/2011 5:31:26 PM

 EXCEL INDUSTRIES LIMITED

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

Re: Excel Industries Limited (‘the Company’)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
of fixed assets.

(b) Fixed assets have been physically verified by the management under a phased programme of verification which,
in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Material
discrepancies were identified on such verification which have been properly dealt with in the books of accounts.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical
verification.

(iii) (a) As informed, the Company has not granted or taken any loans, secured or unsecured to/from companies, firms or
other parties covered in the register maintained under section 301 of the Act. Hence clauses 4(iii)(b) to 4(iii)(g) of
the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us, there is an 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. During the course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas. During the course of our audit, we have not observed any continuing failure to
correct major weakness in internal control system of the Company.

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the
particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance
of such contracts or arrangements exceeding value of ` five lakhs have been entered into during the financial year
at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In respect of deposits accepted, in our opinion and according to the information and explanations given to us, directives
issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act
and the rules framed there under, to the extent applicable, have been complied with. We are informed by the management
that no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal.

(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1)(d) of the Act, and are of the opinion that prima
facie, the prescribed accounts and records have been made and maintained.

31

Excel-Auditors Report.indd 31 6/17/2011 5:31:26 PM

 (ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax,
service tax, customs duty, excise duty, cess and other material statutory dues applicable to it.

Further, since the Central Government has till date not prescribed the amount of cess payable under Section 441A
of the Act, we are not in a position to comment upon the regularity or otherwise of the Company in depositing
the same.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident
fund, investor education and protection fund, employees’ state insurance, income-tax, wealth-tax, service tax,
sales-tax, customs duty, excise duty, cess and other undisputed statutory dues were outstanding, at the year end,
for a period of more than six months from the date they became payable.

(c) According to the records of the Company, there are no dues outstanding on account of any dispute of income-
tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, except as
follows:

Name of the Nature of dues Amount Period to which Forum where

statute (` in lacs) amount pertains dispute is pending
Central Excise Excise Duty Demand 0.25 2003-04 Revision Application
Unit, New Delhi
Central Excise Excise Duty Demand 14.39 2002-05 Additional
Commissioner,
Raigad
State Excise Act Excise Duty Demand 150.81 2002-11 Commissioner of
State Excise
Central Excise Excise Duty Demand 14.07 2007-08 Additional
Commissioner of
Central Excise,
Raigad
Central Excise Excise Duty Demand 0.01 2009 Assistant
Commissioner of
Central Excise, Alibag
Division
Service Tax Service Tax Demand 1.86 2005-09 Commissioner of
Service Tax, Raigad
Service Tax Service Tax Demand 0.63 2010 Commissioner of
Central Excise, Alibag
Central Sales Tax Sales Tax Demand 19.96 2006-07 Commissioner of
Sales Tax (Appeals)
Central Sales Tax Sales Tax Demand 14.13 2003-05 Deputy
Commissioner of
Sales Tax, Kolhapur.

32

Excel-Auditors Report.indd 32 6/17/2011 5:31:27 PM

 (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current
and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the
opinion that 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 and based on the documents and records produced to us, the
Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Order are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the Company.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.

(xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which
the loans were obtained.

(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 no funds raised on short-term basis have been used for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained
under Section 301 of the Act.

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements
and as per 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.

For S. R. BATLIBOI & CO.

Firm registration number: 301003E
Chartered Accountants

per Vijay Maniar

Partner
Membership No.: 36738

Place : Mumbai
Date : 20 May 2011

33

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 EXCEL INDUSTRIES LIMITED
BALANCE SHEET AS AT 31ST MARCH, 2011

As at 31st As at 31st
March,2011 March,2010
Schedule (` in lacs) (` in lacs) (` in lacs)
SOURCES OF FUNDS
1. SHAREHOLDERS’ FUNDS:
(a) Share Capital ‘A’ 5,45.28 5,45.28
(b) Reserves and Surplus ‘B’ 105,36.63 96,70.21
110,81.91 102,15.49
2. LOAN FUNDS:
(a) Secured Loans ‘C’ 27,25.43 34,18.00
(b) Unsecured Loans ‘D’ 24,56.35 25,93.05
51,81.78 60,11.05
3. DEFERRED TAX LIABILITY (NET)
(Refer Note No. 10 of Schedule ‘T’) 13,69.61 14,68.26
TOTAL 176,33.30 176,94.80

APPLICATION OF FUNDS
1. FIXED ASSETS: ‘E’
(a) Gross Block 212,51.31 215,07.89
(b) Less: Accumulated Depreciation 114,51.73 114,12.76
(c) Net Block 97,99.58 100,95.13
(d) Capital Work-in-Progress including capital advances 2,97.40 3,44.88
100,96.98 104,40.01
2. INTANGIBLE ASSETS ‘F’ 88.45 85.52
3. INVESTMENTS ‘G’ 13,62.01 9,96.15
4. CURRENT ASSETS, LOANS AND ADVANCES:
(a) Inventories ‘H’ 38,54.07 33,81.71
(b) Sundry Debtors ‘I’ 59,51.30 56,36.90
(c) Cash and Bank Balances ‘J’ 4,14.95 2,55.27
(d) Other Current Assets ‘K’ 2,99.27 2,98.38
(e) Loans and Advances ‘L’ 16,98.06 19,34.71
(A) 122,17.65 115,06.97
LESS: CURRENT LIABILITIES AND PROVISIONS:
(a) Current Liabilities ‘M’ 45,74.36 38,91.87
(b) Provisions ‘N’ 15,57.43 14,41.98
(B) 61,31.79 53,33.85
NET CURRENT ASSETS (A-B) 60,85.86 61,73.12
TOTAL 176,33.30 176,94.80
NOTES TO ACCOUNTS ‘T’

The schedules referred to above and notes to accounts form an integral part of the Balance Sheet.
As per our report of even date

For S. R. BATLIBOI & CO. For and on behalf of the Board of Directors of Excel Industries Limited
Firm Registration No.: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President – Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date: 20 May 2011 Date: 20 May 2011

34

Accounts-Indust.indd 34 6/17/2011 4:49:33 PM

 EXCEL INDUSTRIES LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

Current Previous
Year Year
Schedule (` in lacs) (` in lacs) (` in lacs)
INCOME
Sale of Products (Gross) 272,54.14 235,54.46
Less: Excise Duty (Refer Note No. 16 of Schedule ‘T’) 18,42.23 13,22.76
Sale of Products (Net) 254,11.91 222,31.70
Processing Charges [Tax deducted at source: ` 28.68 lacs 14,33.93 13,07.21
(Previous Year: ` 27.45 lacs)]
Other Income from operations ‘O’ 7,48.42 4,34.26
Other Income ‘P’ 2,11.04 2,01.45
278,05.30 241,74.62

EXPENDITURE
Manufacturing and Other Expenses ‘Q’ 247,11.86 207,75.49
(Increase)/Decrease in Stocks ‘R’ (4,81.23) 5,49.13
Depreciation/Amortisation 9,74.20 9,92.96
Interest ‘S’ 5,65.22 7,17.43
257,70.05 230,35.01
PROFIT BEFORE TAXATION AND PRIOR PERIOD ADJUSTMENTS 20,35.25 11,39.61
Less: Provision for Taxation:
Current Tax 7,03.00 1,26.00
Minimum Alternative Tax (Entitlement) [Including Nil
(Previous Year: ` 96.75 lacs) in respect of earlier years] — (1,78.75)
Deferred Tax (98.65) 4,49.03
6,04.35 3,96.28
PROFIT AFTER TAXATION BUT BEFORE PRIOR PERIOD ADJUSTMENTS 14,30.90 7,43.33
Add/(Less): (a) Prior Period Adjustments [Net of Tax ` 24.36 lacs
(Previous Year: ` 1,57.32 lacs)] (1,05.25) 1,89.53
(b) Provision for Taxation in respect of earlier years 16.07 (1,36.27)
NET PROFIT 13,41.72 7,96.59
Balance brought forward from previous year 13,65.05 11,22.80
PROFIT AVAILABLE FOR APPROPRIATION 27,06.77 19,19.39
Less: Appropriations
(a) Proposed Dividend 4,08.96 2,18.11
(b) Tax on Distributed Profits 66.34 36.23
(c) Transfer to General Reserve 11,00.00 3,00.00
15,75.30 5,54.34
Surplus carried to Balance Sheet 11,31.47 13,65.05
EARNINGS PER SHARE
(Refer Note No. 11 of Schedule ‘T’ )
Basic and Diluted Earnings Per Share (`) 12.30 7.30
Face Value Per Share (`) 5.00 5.00
NOTES TO ACCOUNTS ‘T’

The schedules referred to above and notes to accounts form an integral part of the Profit and Loss Account.
As per our report of even date

For S. R. BATLIBOI & CO. For and on behalf of the Board of Directors of Excel Industries Limited
Firm Registration No.: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President – Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date: 20 May 2011 Date: 20 May 2011

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 EXCEL INDUSTRIES LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2011

For the year ended For the year ended

31st March, 2011 31st March, 2010
(` in lacs) (` in lacs) (` in lacs) (` in lacs)
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before Tax and Extraordinary Items 20,35.25 11,39.61
Adjustments for:
Depreciation 9,23.11 9,46.37
Amortisation of Intangible Assets 51.09 46.59
Assets written off 1,86.11 5,01.26
Investments written off — 1.34
Provision for Doubtful Debts/Advances 10.50 3.50
Sundry Credit Balances written back (41.84) (0.50)
Bad Debts/Sundry Debit Balances Written Off (Net) 1,17.91 91.81
Loss/(Profit) on sale of Fixed Assets 7.70 (1.56)
Provision for Gratuity/Leave Encashments 3,05.10 3,60.56
Interest received (24.07) (23.92)
Interest paid 5,65.22 7,17.43
Dividend Received (1,34.48) (1,33.74)
Manufacturing Expenses Capitalised — (2,68.65)
Unrealised Exchange Loss 9.71 55.56
Excess Provision for depreciation — (9.85)
Short Provision for depreciation — 0.25
Short/(Excess) Provision for other items (Net) 8.51 5.35
19,84.57 22,91.80
Operating Profit before working capital changes 40,19.82 34,31.41
Adjustments for:
Decrease/(Increase) in Sundry Debtors (4,00.98) (1,75.80)
Decrease/(Increase) in Inventories (4,72.36) 2,36.56
Decrease/(Increase) in Other Current Assets 6.04 99.87
Decrease/(Increase) in Loans & Advances 38.90 74.51
Increase/(Decrease) in Current Liabilities & Provisions 6,02.37 (7,58.29)
(2,26.03) (5,23.15)
Cash generated from Operations 37,93.79 29,08.26
Interest paid 5,29.21 7,28.52
Direct taxes paid 5,10.21 1,23.22
10,39.42 8,51.74
Cash flow before extraordinary items 27,54.37 20,56.52
Prior Period Adjustments (Other than Taxation) (1,05.25) 1,89.53
Net cash from/(used in) Operating Activities (A) 26,49.12 22,46.05

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (11,86.95) (6,72.17)
Purchase of intangible assets (54.02) —
Sale of fixed assets 1,13.06 14.79
Purchase of Investments (3,65.86) —
Sale of Investments — 0.01
Interest received 26.46 22.94
Dividend received 1,34.48 1,33.74
Sundry Loans (given)/returned (65.00) (40.00)
Net Cash from/(used in) Investing Activities (B) (13,97.83) (5,40.69)

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 EXCEL INDUSTRIES LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2011 (Contd.)

For the year ended For the year ended

31st March, 2011 31st March, 2010
(` in lacs) (` in lacs)

C. CASH FLOW FROM FINANCIAL ACTIVITIES

Proceeds from borrowings 10,26.95 16,25.40
Repayment of borrowings (18,65.93) (31,93.41)
Dividend Paid (2,16.40) (58.47)
Tax on distributed Profits (36.23) (9.27)
Net cash from/(used in) Financing Activities (C) (10,91.61) (16,35.75)
Net increase in cash and cash equivalents (A+B+C) 1,59.68 69.61
Cash and cash equivalents at the beginning of the year 2,55.27 1,85.66
Cash and cash equivalents at the end of the year* 4,14.95 2,55.27
Break-up:
Cash on hand — —
Balance with Scheduled Banks:
(i) In Unclaimed Dividend Accounts 8.87 7.39
(ii) In Current Accounts 1,63.91 63.15
(iii) In Deposits 73.00 73.00
(iv) In Margin Money Accounts 1,69.17 1,11.73
4,14.95 2,55.27

Note: Cash and cash equivalents at the end of the year are after adjustment of unrealised exchange loss/(gain) of ` 0.16 lac (Previous Year: ` 2.17 lacs).
* Cash and cash equivalents include ` 8.87 lacs (Previous Year: ` 7.39 lacs) in respect of unclaimed dividend, the balance of which is not available to
the Company.

As per our report of even date

For S. R. BATLIBOI & CO. For and on behalf of the Board of Directors of Excel Industries Limited
Firm Registration No.: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President – Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date: 20 May 2011 Date: 20 May 2011

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET

SCHEDULE ‘A’ As at 31st As at 31st

March, 2011 March,2010
SHARE CAPITAL (` in lacs) (` in lacs)
Authorised:

3,80,00,000 (Previous Year: 3,80,00,000) Equity Shares of ` 5 /- each 19,00.00 19,00.00

8,50,000 (Previous Year: 8,50,000) 11% Cumulative Redeemable Preference Shares 85.00 85.00
of ` 10 /- each

3,00,000 (Previous Year: 3,00,000) Unclassified Shares of ` 5 /- each 15.00 15.00

20,00.00 20,00.00

Issued, Subscribed and Paid-up:

1,09,05,630 (Previous Year: 1,09,05,630) Equity Shares of ` 5 /- each fully Paid-up 5,45.28 5,45.28
Note: [Of the above Equity Shares, 98,10,710 (Previous Year: 98,10,710)
Equity Shares have been allotted as fully paid-up by way of
Bonus Shares by capitalisation of General Reserve without payment
being received in cash.]

TOTAL 5,45.28 5,45.28

SCHEDULE ‘B’ As at 31st As at 31st

March,2011 March,2010
RESERVES AND SURPLUS (` in lacs) (` in lacs) (` in lacs)

1. Capital Reserve:

(a) Profit on repurchase of Debentures 0.01 0.01

(b) Government Grants/Subsidies 70.00 70.00

70.01 70.01

2. Securities Premium Account 1,81.08 1,81.08

3. General Reserve:

Balance as per last Balance Sheet 80,54.07 77,54.07

Add: Transferred from Profit and Loss Account 11,00.00 3,00.00

91,54.07 80,54.07

4. Profit and Loss Account 11,31.47 13,65.05

TOTAL 105,36.63 96,70.21

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET

SCHEDULE ‘C’ As at 31st As at 31st

March,2011 March,2010
SECURED LOANS (` in lacs) (` in lacs) (` in lacs)
1. From Banks:

(a) On Working Capital Demand Loan Accounts 9,99.97 9,99.97

(Refer Note No. 1 given below)

(b) On Cash Credit and Packing Credit Accounts 16,83.77 23,31.83

(Refer Note No. 1 given below)

(c) On Term Loan Accounts — 62.50

(d) Under Vehicle Finance Scheme 0.46 1.31

(Refer Note No. 2 given below)

26,84.20 33,95.61

2. From Others:
Under Vehicle Finance 41.23 22.39
(Refer Note No. 2 given below)

TOTAL 27,25.43 34,18.00

Notes:
1. Loans from Banks on Cash Credit and Packing Credit and Working Capital Demand
Loan Accounts are secured by hypothecation of all tangible movable assets, both
present and future, including stock of raw materials, finished goods, goods-in-
process, stores, book debts etc. and is secured by a second charge on the fixed
assets at Roha and Lote Parshuram. The aforesaid charges are exclusive of book
debts and stocks which are charged in favour of the Company’s bankers for securing
borrowings for working capital requirements.
2. Term Loan under Vehicle Finance from HDFC Bank Limited amounting to ` 0.46 lac
(Previous Year: ` 1.31 lacs) and from Kotak Mahindra Prime Limited amounting to
` 41.23 lacs (Previous Year: ` 22.39 lacs) respectively are secured by hypothecation
of the vehicles acquired by utilising the said loans.

SCHEDULE ‘D’ As at 31st As at 31st

March, 2011 March,2010
UNSECURED LOANS (` in lacs) (` in lacs)

1. Fixed Deposits 18,40.01 17,91.82

[Due within one year: ` 4,03.47 lacs (Previous Year: ` 2,36.07 lacs)]

2. Short Term Loans

From Banks 4,16.34 7,51.23
[Due within one year: ` 4,16.34 lacs (Previous Year: ` 7,51.23 lacs)]

3. Inter Corporate Deposits 2,00.00 50.00

[Due within one year: ` 2,00.00 lacs (Previous Year: ` 50.00 lacs)]
TOTAL 24,56.35 25,93.05

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET

SCHEDULE ‘E’
FIXED ASSETS (` in lacs)

GROSS BLOCK (AT COST OR VALUATION) DEPRECIATION/AMORTISATION NET BLOCK

I II III IV V VI VII VIII IX X
Sr. Description of Assets As at Additions Deduc- Asa t As at Deduc- Provided Asa t Asa t As at
No. 1st during tions 31st 1st tions/ during 31st 31st 31st
April, the during March, April, Adjust- the March, March, March,
2010 year the year 2011 2010 ments year 2011 2011 2010

I. LAND — FREEHOLD 1,72.91 — — 1,72.91 — — — — 1,72.91 1,72.91

II. LAND — LEASEHOLD 2,82.71 — — 2,82.71 42.50 — 4.65* 47.15 2,35.56 2,40.21
III. LEASEHOLD IMPROVEMENTS 23.43 — — 23.43 3.55 — 8.52 12.07 11.36 19.88
IV. BUILDINGS 22,11.96 83.11 4.19 22,90.88 6,55.43 1.15 94.86 7,49.14 15,41.74 15,56.53
(Refer Note No. 2 below)
V. PLANT AND MACHINERY 163,19.65 9,79.25 12,92.80 160,06.10 87,96.17 8,39.02@ 7,80.53** 87,37.68 72,68.42 75,23.48
VI. DATA PROCESSING EQUIPMENT 8,51.47 57.28 70.52 8,38.23 6,69.25 (0.20) 40.17 7,09.62 1,28.61 1,82.22
VII. ELECTRICAL INSTALLATION 4,88.35 38.01 1.46 5,24.90 3,34.31 24.31 26.23 3,36.23 1,88.67 1,54.04
VIII. LABORATORY EQUIPMENTS 2,30.88 16.01 35.05 2,11.84 2,17.63 34.27@ 6.00 1,89.36 22.48 13.25
IX. FURNITURE, FIXTURES AND
OFFICE EQUIPMENTS 6,54.46 15.88 53.87 6,16.47 5,11.00 49.16@ 25.84** 4,87.68 1,28.79 1,43.46
X. VEHICLES 2,63.97 43.75 33.12 2,74.60 1,77.34 29.37@ 28.64** 1,76.61 97.99 86.63
XI. TECHNICAL BOOKS 8.10 1.14 — 9.24 5.58 — 0.61 6.19 3.05 2.52
TOTAL 215,07.89 12,34.43 14,91.01 212,51.31 114,12.76 9,77.08 10,16.05 114,51.73 97,99.58 100,95.13
PREVIOUS YEAR 214,74.10 7,18.00 6,84.21 215,07.89 109,45.71 4,79.57@ 9,46.62** 114,12.76
CAPITAL WORK-IN-PROGRESS 2,97.40 3,44.88
(Refer Note No. 3 below)
TOTAL 100,96.98 104,40.01

NOTES:
1.* Amount written off in respect of Leasehold Land.
2. Buildings include cost of shares in Co-operative Housing Societies ` 0.01 lac (Previous Year: ` 0.01 lac).
3. Capital Work-in-Progress includes Advance for Capital Expenditure ` 1,62.48 lacs (Previous Year: ` 11,94.24 lacs).
4.** Includes Short Provision for Depreciation for earlier years ` 92.94 lacs (Previous Year: ` 0.25 lac).
5.@ Includes Excess Provision for Depreciation for earlier years written back ` 24.60 lacs (Previous Year: ` 9.85 lacs).
6. Buildings include Buildings given on operating lease:
Gross Book value ` 1,99.70 lacs (Previous Year: ` 1,40.92 lacs)
Accumulated depreciation ` 77.36 lacs (Previous Year: ` 75.45 lacs)
Depreciation for the year ` 1.30 lacs (Previous Year: ` 1.92 lacs)
Net Block ` 1,21.04 lacs (Previous Year: ` 63.55 lacs)

SCHEDULE ‘F’
INTANGIBLE ASSETS (` in lacs)

GROSS AMOUNT AMORTISATION NET AMOUNT

SR. NO. DESCRIPTION OF As at 1st Additions Deductions As at 31st As at 1st Deductions/ Provided As at 31st As at 31st As at 31st
INTANGIBLE ASSETS April, during the during the March, April, Adjustments during the March, March, March,
2010 year year 2011 2010 year 2011 2011 2010

1. Computer Software 1,86.34 — — 1,86.34 1,00.82 — 46.59 1,47.41 38.93 85.52

2. Trademarks 7.00 — — 7.00 7.00 — — 7.00 — —

3 Export Product Registration — 54.02 — 54.02 — — 4.50 4.50 49.52 —

TOTAL 1,93.34 54.02 — 2,47.36 1,07.82 — 51.09 1,58.91 88.45 85.52

Previous Year 1,93.34 — — 1,93.34 61.23 — 46.59 1,07.82

40

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 EXCEL INDUSTRIES LIMITED
SCHEDULE FORMING PART OF THE BALANCE SHEET

SCHEDULE ‘G’ As at 31st As at 31st

March,2011 March,2010
INVESTMENTS (` in lacs) (` in lacs) (` in lacs)

LONG-TERM (AT COST)

1. IN SUBSIDIARY COMPANY (Unquoted) (Trade Investments):
1,99,982 (Previous Year: 1,99,982) Equity Shares of ` 100/- each fully paid-up in 1,99.98 1,99.98
Kamaljyot Investments Limited

2. TRADE INVESTMENTS :
Quoted
(a) 2,45,760 (Previous Year: 1,00,000) Equity Shares of ` 5/- each fully paid-up
in Excel Crop Care Limited 3,66.26 0.40
(b) 5,84,977 (Previous Year: 5,84,977) Equity Shares of ` 10/- each fully paid-up
in Punjab Chemicals and Crop Protection Limited 3,09.00 3,09.00
Unquoted
(a) 8,88,750 (Previous Year: 8,88,750) Equity Shares of ` 10/- each fully paid-up
in TML Industries Limited 1,77.75 1,77.75
(b) 10,67,450 (Previous Year: 10,67,450) Equity Shares of ` 10/- each fully
paid-up in Transpek-Silox Industry Limited 2,86.08 2,86.08
(c) 4,68,000 (Previous Year: 4,68,000) Equity Shares of Hong Kong $ 1 each fully
paid-up in Wexsam Limited, Hong Kong 27.26 27.26

11,66.35 8,00.49

3. OTHER THAN TRADE:

Quoted
(a) 4,285 (Previous Year: 4,285) Equity Shares of ` 10/- each fully paid-up
in TIL Limited 1.53 1.53
(b) 35,900 (Previous Year: 35,900) Equity Shares of ` 10/- each fully paid-up
in Bank of India 16.16 16.16
Unquoted
(a) 2,500 (Previous Year: 2,500) Equity Shares of ` 10/- each fully paid-up in
The Saraswat Co-operative Bank Limited 0.25 0.25
(b) 50,000 (Previous Year: 50,000) Equity Shares of ` 10/- each fully paid-up in
Biotech Consortium India Limited 5.00 5.00

22.94 22.94

13,89.27 10,23.41
Less: Provision for Diminution in value of long-term Investments
(Refer Note No. 17 of Schedule ‘T’) 27.26 27.26

TOTAL 13,62.01 9,96.15

Notes:
1. Aggregate amount of Quoted Investments:
Cost (Net of provision for diminution) 6,92.95 3,27.09
Market Value 13,13.32 12,93.06
2. Aggregate amount of Unquoted Investments:
Cost (Net of provision for diminution) 6,69.06 6,69.06

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET

SCHEDULE ‘H’ As at 31st As at 31st

March,2011 March, 2010
INVENTORIES (` in lacs) (` in lacs) (` in lacs)
(at lower of cost or net realisable value)
1. Stores and Spares (including Fuel) 3,64.17 2,85.91
2. Packing Materials 1,13.10 83.28
3. Stock-in-Trade:
(a) Finished Products 16,61.21 12,83.53
(b) Semi-finished Products 3,31.09 2,36.20
(c) Traded Goods 1,21.34 1,12.68
(d) Raw Materials [Including Stock-in-Transit ` 2,59.22 lacs (Previous Year:
` 9,00.00 lacs)] 12,63.16 13,80.11
33,76.80 30,12.52
TOTAL 38,54.07 33,81.71

SCHEDULE ‘I’ As at 31st As at 31st

March, 2011 March, 2010
SUNDRY DEBTORS (` in lacs) (` in lacs) (` in lacs)
Unsecured
(a) Debts outstanding for a period exceeding six months:
Considered Good 1,14.80 2,02.87
Considered Doubtful — —
1,14.80 2,02.87
Less: Provision for Doubtful Debts — —
1,14.80 2,02.87
(b) Other Debts:
Considered Good 58,36.50 54,34.03
TOTAL 59,51.30 56,36.90

SCHEDULE ‘J’ As at 31st As at 31st

March, 2011 March,2010
CASH AND BANK BALANCES (` in lacs) (` in lacs)
Balances With Scheduled Banks:
(i) In Unclaimed Dividend Accounts* 8.87 7.39
(ii) In Current Accounts 1,63.91 63.15
(iii) In Deposits 73.00 73.00
(iv) In Margin Money Accounts 1,69.17 1,11.73
TOTAL 4,14.95 2,55.27
* The balance is not available to the Company.

SCHEDULE ‘K’ As at 31st As at 31st

March, 2011 March,2010
OTHER CURRENT ASSETS (` in lacs) (` in lacs)
1. Interest Receivable 6.98 5.56
2. Export Benefits Receivable 1,65.57 1,94.27
3. Income Tax Refund Receivable 91.44 85.94
4. Miscellaneous Receivable 31.24 5.18
5. Unamortised Premium on Forward Contract 4.04 7.43
TOTAL 2,99.27 2,98.38

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE BALANCE SHEET

SCHEDULE ‘L’ As at 31st As at 31st

March,2011 March,2010
LOANS AND ADVANCES (` in lacs) (` in lacs) (` in lacs)
Unsecured and Considered Good, unless otherwise stated
1. Loan to Subsidiary Company (Refer Note No. 18 of Schedule ‘T’) 3,20.00 2,55.00
2. Advances recoverable in cash or in kind or for value to be received
— Considered Good 10,13.35 10,06.30
— Considered Doubtful 35.00 24.50
10,48.35 10,30.80
Less: Provision for Doubtful Advances 35.00 24.50
10,13.35 10,06.30
3. Minimum Alternative Tax Credit Entitlement — 2,62.75
4. Balance with Excise Authorities 1,72.86 2,38.83
5. VAT Credit (Input) Receivable 1.65 12.28
6. Sundry Deposits 1,90.20 1,59.55
TOTAL 16,98.06 19,34.71

SCHEDULE ‘M’ As at 31st As at 31st

March,2011 March,2010
CURRENT LIABILITIES (` in lacs) (` in lacs) (` in lacs)

1. Acceptances 5,46.07 3,05.94

2. Sundry Creditors
— total outstanding dues of Micro and Small Enterprises (Refer Note No. 5 of
Schedule ‘T’) — —
— total outstanding dues of creditors other than Micro and Small Enterprises 32,42.80 25,94.15
3. Other Liabilities 1,06.06 4,00.29
4. Other Payables 3,65.98 2,69.58
5. Advances from Customers 1,17.24 1,57.54
6. Overdrawn Bank Balances — 58.85
7. Investor Education and Protection Fund shall be credited by the following amounts,
as and when due:
(a) Unclaimed Dividend 8.87 7.16
(b) Unclaimed Matured Deposits 9.79 16.66
18.66 23.82
8. Sundry Deposits 1,00.00 40.16
9. Interest accrued but not due on Loans 77.55 41.54
TOTAL 45,74.36 38,91.87

SCHEDULE ‘N’ As at 31st As at 31st

March, 2011 March,2010
PROVISIONS (` in lacs) (` in lacs)
1. Provision for Taxation [net of Advance tax ` 21,29.92 lacs 4,24.84 4,97.26
(Previous Year: ` 21,69.93 lacs)]
2. Provision for Fringe Benefit Tax [net of Advance tax ` 28.25 lacs 0.25 4.55
(Previous Year: ` 84.95 lacs)]
3. Proposed Dividend on Equity Shares 4,08.96 2,18.11
4. Provision for Tax on Distributed Profits 66.34 36.23
5. Provision for Gratuity (Refer Note No. 12 of Schedule ‘T’) 1,39.14 2,16.67
6. Provision for Other Retirement Benefits 5,17.90 4,69.16
TOTAL 15,57.43 14,41.98

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

SCHEDULE ‘O’ Current Previous

Year Year
OTHER INCOME FROM OPERATIONS (` in lacs) (` in lacs)
1. Incentives on Exports 1,94.06 1,56.18
2. Sales-tax/VAT Refund 15.80 8.95
3. (Short)/Excess Accruals written back (Net) (Refer Note No. 9 of Schedule ‘T’) — 4.25
4. Commission Received 55.07 15.18
5. Royalty Income 2,14.99 72.50
[Tax deducted at source: ` 11.35 lacs (Previous Year: ` 8.00 lacs)]
6. Sundry Credit Balances written back (Net) 41.84 0.50
7. Miscellaneous Income 2,26.66 1,76.70

TOTAL 7,48.42 4,34.26

SCHEDULE ‘P’
Current Previous
Year Year
OTHER INCOME (` in lacs) (` in lacs) (` in lacs)
1. Income from Long-Term Investments (Gross):
(a) Dividend on Trade Investments 1,31.66 1,31.72
(b) Dividend on Other than Trade Investments 2.82 2.02

1,34.48 1,33.74
2. Interest on Loans, Deposits, etc (Gross) 24.07 23.92
[Tax deducted at source: ` 1.54 lacs (Previous Year: ` 2.82 lacs)]
3. Rent 44.79 43.79
[Tax deducted at source: ` 4.08 lacs (Previous Year: ` 4.29 lacs)]
4. Interest on Income Tax Refund 7.70 —

TOTAL 2,11.04 2,01.45

SCHEDULE ‘Q’ Current Previous

Year Year
MANUFACTURING AND OTHER EXPENSES (` in lacs) (` in lacs) (` in lacs) (` in lacs)
1. RAW MATERIALS CONSUMED:
Opening Stock 13,80.11 10,55.49
Add: Purchases 125,02.93 106,14.91

138,83.04 116,70.40
Less: Closing Stock 12,63.16 13,80.11

126,19.88 102,90.29
2. PURCHASES OF TRADED GOODS 6,19.77 5,22.07
3. CONTAINERS AND PACKING MATERIALS CONSUMED 7,68.16 6,65.16
4. PERSONNEL EXPENSES
(a) Salaries, Wages, Bonus and Other Benefits 31,45.52 24,98.64
(b) Contribution to Provident Fund and Other Funds 2,79.73 2,58.42
(c) Provision/Payment of Gratuity 1,89.23 1,85.64
(Refer Note No.12 of Schedule ‘T’)
(d) Provision for Other Retirement Benefits 1,15.87 1,74.92
(e) Welfare Expenses 2,08.94 1,94.05

39,39.29 33,11.67
Total Carried Forward 179,47.10 147,89.19

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 EXCEL INDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

SCHEDULE ‘Q’ (Contd.) Current Previous

Year Year
MANUFACTURING AND OTHER EXPENSES (` in lacs) (` in lacs) (` in lacs) (` in lacs)
5. OPERATING AND OTHER EXPENSES:
Total Brought Forward 179,47.10 147,89.19
(a) Stores and Spares Consumed 46.02 46.53
(b) Power and Fuel 22,47.06 18,64.99
(c) Repairs to Buildings 48.59 38.75
(d) Repairs to Machinery 10,07.71 6,90.74
(e) Other Repairs 63.23 82.23
(f) Processing Charges 2,10.97 1,52.50
(g) Rent 28.75 31.38
(h) Rates and Taxes 63.17 64.24
(i) Insurance Charges 50.56 37.55
(j) Commission on Sales (Other than sole selling agents) 73.00 87.97
(k) Discount on Sales 22.80 24.19
(l) Travelling and Conveyance 1,53.50 1,25.91
(m) Charity and Donations 29.71 15.23
(n) Bad Debts/Sundry Debit Balances written off 1,17.91 11,07.62
Less : Provision for doubtful debts written back — 10,15.81
1,17.91 91.81
(o) Provision for Doubtful Debts / Advances 10.50 3.50
(p) Excess Short Provision (Refer Note No. 9 of Schedule ‘T’) 8.51 —
(q) Assets written off 1,86.11 5,02.60
(r) Excise Duty Paid (Refer Note No. 16 of Schedule ‘T’) 34.19 29.32
(s) Exchange Difference (Net) 32.53 45.27
(t) Freight Outwards and Forwarding expenses 7,26.41 5,28.49
(u) Directors' Fees 3.30 3.20
(v) Loss on sale of Assets (Net) 9.96 0.12
(w) Other Expenses (Refer Note No. 7.1 of Schedule 'T') 15,90.27 15,19.78
67,64.76 59,86.30
TOTAL 247,11.86 207,75.49

SCHEDULE ‘R’ Current Previous

Year Year
(INCREASE)/DECREASE IN STOCKS (` in lacs) (` in lacs) (` in lacs)
(a) Opening Stocks :
Finished Products 12,83.53 17,33.19
Semi-finished Products 2,36.20 3,61.74
Traded Goods 1,12.68 86.61
16,32.41 21,81.54
(b) Less: Closing Stocks
Finished Products 16,61.21 12,83.53
Semi-finished Products 3,31.09 2,36.20
Traded Goods 1,21.34 1,12.68
21,13.64 16,32.41
(4,81.23) 5,49.13

SCHEDULE ‘S’ Current Previous

Year Year
INTEREST (` in lacs) (` in lacs)
1. On Intercorporate/Fixed deposits 2,01.18 1,96.42
2. On Term loans with banks 0.91 50.07
3. On Cash Credit/Working Capital Demand Loan Accounts 3,23.17 3,99.16
4. Others 39.96 71.78
TOTAL 5,65.22 7,17.43

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NOTES TO ACCOUNTS

1. NATURE OF OPERATIONS:
Excel Industries Limited is engaged in manufacturing of Chemicals and Environmental
products. Chemicals comprise of Industrial/Specialty chemicals and Pesticides Intermediates.
Environmental products comprise of Soil Enricher, Bio - Pesticides and other Bio-products.
The Company is also engaged in manufacturing activity on behalf of third parties.
2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:
(a) Basis of Preparation:
The financial statements have been prepared to comply in all material respects with
the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006
(as amended) and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention on an accrual
basis except in case of assets for which revaluation is carried out. The accounting
policies have been consistently applied by the Company are consistent with those
used in the previous year.
(b) Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at
the date of the financial statements and the results of operations during the reporting
period. Although these estimates are based upon management’s best knowledge of
current events and actions, actual results could differ from these estimates.
(c) Fixed Assets and Depreciation:
(i) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation / amortisation
and provision for impairment, if any, except for the following:
(a) Land, Buildings, Plant and Machinery and Electrical Installations situated
at Roha have been revalued as on 30 September, 2001 on the basis
of valuation report of Government approved valuers at their depreciated
replacement value and stated at their revalued amounts.
(b) Assets at Mumbai installed up to 31 March, 2002 are stated at cost as
estimated by an approved valuer.
Cost comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Borrowing costs relating to
acquisition of fixed assets which takes substantial period of time to get ready
for its intended use are also included to the extent they relate to the period till
such assets are ready to be put to use.
(ii) Depreciation and Amortisation:
(a) Leasehold Land (at cost or revalued as the case may be) is amortised
over the period of 69 Years and 95 Years for Roha and Lote Parashuram
site respectively.
(b) Other Fixed Assets:
1. In the case of following assets (which have been revalued) at Roha,
depreciation has been provided on straight line (SL) basis over
the balance useful life of the assets as estimated by the approved
valuer or at the rates specified in Schedule XIV to the Companies
Act, 1956, whichever are higher.
Description of * Rates (SL Method) Schedule XIV Rates
Tangible Assets (Range) (SL Method)
Buildings 1.63% – 19.00% 1.63%
Plant & Machinery 5.28% – 47.50% 5.28%
Electrical Installations 5.28% – 31.67% 5.28%
* Depreciation Rates on SL Method for the balance useful life as
estimated by the valuer.

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NOTES TO ACCOUNTS

2. In respect of Buildings, Plant and Machinery and Electrical Installations,

except additions to the aforesaid Fixed Assets at Mumbai upto 30
September 1981, on straight line basis in accordance with Section
205(2)(b) of the Companies Act, 1956, at the rates specified in Schedule
XIV to the Companies Act, 1956.
3. In respect of all other Fixed Assets, on written down value basis in
accordance with Section 205(2)(a) of the Companies Act, 1956, at the
rates specified in Schedule XIV to the Companies Act, 1956.
4. Individual assets acquired for less than ` 5,000 are entirely depreciated
in the year of acquisition.
(d) Impairment:
(i) The carrying amounts of assets are reviewed for impairment at each Balance
Sheet date if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the greater
of the asset’s net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of
money and risks specific to the asset.
(ii) After impairment, depreciation is provided on the revised carrying amount of the
asset over its remaining useful life.
(iii) A previously recognised impairment loss is increased or reversed depending
on changes in circumstances. However, the carrying value after reversal is not
increased beyond the carrying value that would have prevailed by charging
usual depreciation if there was no impairment.
(e) Intangible Assets and Amortisation:
(i) Intangible assets are stated at cost less accumulated amortisation.
(ii) Amortisation:
(a) Computer software is amortised on a straight line basis proportionately
over a period of four years.
(b) Trademarks are amortised on a straight line basis proportionately over a
period of five years.
(c) Product Registration expenses are amortised on a straight line basis over
a period of four years.
(f) Inventories:
(i) Raw materials, containers, stores and spares
Lower of cost and net realisable value. However, materials and other items held
for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at
or above cost. Cost is determined on a moving weighted average basis.
(ii) Finished goods and Work-in-progress
Lower of cost and net realisable value. Cost includes direct materials, labour
and a proportion of manufacturing overheads based on normal operating
capacity. Cost of finished goods includes excise duty. Cost is determined on
absorption costing basis at actuals.
(iii) Traded Goods
Lower of cost and net realisable value. Cost is determined on a moving
weighted average basis.
(iv) Work-in-progress in respect of Turnkey Projects is valued at lower of cost and
net realisable value.
Net realisable value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs necessary
to make the sale.

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NOTES TO ACCOUNTS

(g) Investments:
Investments that are readily realisable and intended to be held for not more than a
year are classified as current investments. All other investments are classified as
long-term investments. Current investments are carried at lower of cost and fair value
determined on an individual investment basis. Long-term investments are carried at
cost of acquisition. However, the carrying amount is reduced to recognise a decline,
other than temporary, in the value of long-term investments by a charge to the Profit
and Loss Account.
(h) Export Benefits:
Duty free imports of raw materials under Advance License for Imports as per the
Export and Import Policy are matched with the exports made against the said licenses
and the net benefit / obligation is accounted by making suitable adjustments in raw
material consumption.
The benefit accrued under the Duty Entitlement Pass Book Scheme as per the Export
and Import Policy in respect of exports made under the said Scheme is included
under the head “Other Income from Operation” as ‘Incentives on Exports’.
(i) Retirement Benefits:
(i) Retirement benefits in the form of Provident Fund is a defined contribution
scheme and the contributions are charged to the Profit and Loss Account of the
year when the contribution to the fund is due. There are no obligations other
than the contribution payable to the Provident Fund Trust.
(ii) Retirement benefits in the form of Superannuation Fund is a defined contribution
scheme and the contribution is charged to the Profit and Loss account of the
year when the contribution accrues. There are no obligations other than the
contribution payable to the Superannuation Fund Trust. The scheme is funded
with insurance Company in the form of a qualifying insurance policies.
(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis
of an actuarial valuation on projected unit credit method made at the end of
each financial year.The scheme is funded with insurance Company in the form
of a qualifying insurance policies.
(iv) Short term compensated absences are provided for based on estimates. Long
term compensated absences are provided for based on actuarial valuation. The
actuarial valuation is done as per projected unit credit method.
(v) Actuarial gains / losses are recognised immediately to the Profit and Loss
Account and are not deferred.
(vi) Payments made under the Voluntary Retirement Scheme are charged to the
Profit and Loss Account immediately.
(j) Foreign currency translations:
Foreign currency transactions:
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by
applying to the foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing exchange rate
on the Balance Sheet date. Non-monetary items which are carried in terms
of historical cost denominated in a foreign currency are reported using the
exchange rate at the date of the transaction; and non-monetary items which
are carried at fair value or other similar valuation denominated in a foreign
currency are reported using the exchange rates that existed when the values
were determined.
(iii) Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting
monetary items of Company at rates different from those at which they were
initially recorded during the year, or reported in previous financial statements,
are recognised as income or as expenses in the year in which they arise.

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NOTES TO ACCOUNTS

(iv) Forward Exchange Contracts not intended for trading or speculation purpose:
The premium or discount arising at the inception of forward exchange contracts
is amortised as expense or income over the life of the contract. Exchange
differences on such contracts are recognised in the statement of Profit and Loss
in the year in which the exchange rates change. Any Profit or Loss arising on
cancellation or renewal of forward exchange contract is recognised as income
or as expense for the year.
(k) Research Costs:
Research costs (other than cost of Fixed Assets acquired) are charged as
an expense in the year in which they are incurred and are reflected under
the appropriate heads of accounts. Development expenditure incurred on an
individual project is carried forward when its future recoverability can reasonably
be regarded as assured. Any expenditure carried forward is amortised over the
period of expected future sales from the related project, not exceeding ten years.
The carrying value of development costs is reviewed for impairment annually when
the asset is not yet in use, and otherwise when events or changes in circumstances
indicate that the carrying value may not be recoverable.
(l) Leases:
(a) Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits
of ownership of the leased term, are classified as operating leases. Operating
lease payments are recognized as an expense in the Profit and Loss Account on
a straight-line basis over the lease term.
(b) Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease income is
recognised in the Profit and Loss Account on a straight-line basis over the lease
term. Costs, including depreciation are recognised as an expenses in the Profit
and Loss Account. Initial direct costs such as legal costs, brokerage costs, etc.
are recognised immediately in the Profit and Loss Account.
(m) Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production
of an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost of the respective asset. All
other borrowing costs are expensed in the period they occur. Interest and other
costs incurred for acquisition and construction of qualifying assets, upto the date of
commissioning/installation, are capitalised as part of the cost of the said assets.
(n) Government Grants:
Government Capital Grants of the nature of promoters’ contribution are credited to
Capital Reserve and treated as part of Shareholders’ Funds.
(o) Accounting for Turnkey Projects:
Income in respect of Turnkey Projects is accounted on the completion of the said
projects.
(p) Revenue recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will
flow to the Company and the revenue can be reliably measured.
Sale of Goods
Revenue is recognized when the significant risks and rewards of ownership of the
goods have passed to the buyer. Gross turnover includes Excise Duty but does not
include Sales Tax and VAT.
Income from Services
Revenues from service contracts are recognised pro-rata over the period of the
contract as and when services are rendered and are net of service tax.

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NOTES TO ACCOUNTS
Interest
Revenue is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.
Dividend
Revenue is recognized when the shareholders’ right to receive payment is established
by the Balance Sheet date.
Royalties
Revenue is recognised on an accrual basis in accordance with the terms of the
relevant agreement.
Other Income
Certain items of income such as insurance claims, commission income, overdue
interest from customers etc. are considered to the extent the amount is ascertainable/
accepted by the parties.
(q) Cash and Cash equivalents:
Cash and cash equivalents in the Cash flow statement comprise cash at bank and in
hand and short-term investments with an original maturity of three months or less.
(r) Provisions and contingent liabilities:
A provision is recognised when an enterprise has a present obligation as a result of
past event; it is probable that an outflow of resources will be required to settle the
obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best estimate required
to settle the obligation at the Balance Sheet date. These are reviewed at each balance
sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed when the Company has a possible obligation and
it is not probable that an outflow of resources embodying economic benefits will be
required to settle the obligation.
(s) Earnings Per Share:
Basic earnings per share are calculated by dividing the net Profit or Loss for the period
attributable to equity shareholders (after deducting attributable taxes) by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net Profit or Loss for the
period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.
(t) Segment Reporting Policies:
Identification of segments
The Company’s operating businesses are organized and managed separately according
to the nature of products and services provided, with each segment representing a
strategic business unit that offers different products and serves different markets. The
analysis of geographical segments is based on the areas in which major operating
divisions of the Company operate.
Inter segment Transfers :
The Company generally accounts for intersegment sales and transfers as if the sales
or transfers were to third parties at current market prices.
Unallocated items
Includes general corporate income and expense items which are not allocated to any
business segment.
Segment Policies
The Company prepares its segment information in conformity with the accounting
policies adopted for preparing and presenting the financial statements of the Company
as a whole. Common allocable costs are allocated to cash segment according to the
relative contribution of each segment.

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NOTES TO ACCOUNTS

(u) Taxation:
Tax expense comprises of current and deferred tax. Current income tax measured at
the amount expected to be paid to the tax authorities in accordance with the Income-
tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current
year timing differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the Balance Sheet date. Deferred tax assets and deferred tax liabilities are
offset, if a legally enforceable right exists to set off current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on
income levied by same governing taxation laws. Deferred tax assets are recognised only
to the extent that there is reasonable certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised. In situations where
the Company has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognised only if there is virtual certainty supported by convincing
evidence that they can be realised against future taxable profits.
At each Balance Sheet date the Company re-assesses unrecognised deferred tax
assets. It recognises unrecognised deferred tax assets to the extent that it has become
reasonably certain or virtually certain, as the case may be that sufficient future taxable
income will be available against which such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each Balance Sheet date.
The Company writes-down the carrying amount of deferred tax asset to the extent
that it is no longer reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which deferred tax asset can
be realised. Any such write-down is reversed to the extent that it becomes reasonably
certain or virtually certain, as the case may be, that sufficient future taxable income
will be available.
Wealth Tax is provided in accordance with the provisions of the Wealth Tax Act, 1957.
MAT credit is recognised as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period.
In the year in which the Minimum Alternative tax (MAT) credit becomes eligible to
be recognized as an asset in accordance with the recommendations contained in
guidance Note issued by the Institute of Chartered Accountants of India, the said asset
is created by way of a credit to the Profit and Loss Account and shown as MAT Credit
Entitlement. The Company reviews the same at each Balance Sheet date and writes
down the carrying amount of MAT Credit Entitlement to the extent there is no longer
convincing evidence to the effect that Company will pay normal Income Tax during
the specified period.
As at 31st As at 31st
March, 2011 March, 2010
(` in lacs) (` in lacs)
3. Contingent Liabilities:
(a) Bills discounted — 67.25
(b) Disputed income-tax liability 9,09.74 6,67.42
(c) Disputed excise duty liability 1,79.52 1,42.69
(d) Disputed sales tax liability 34.09 5.14
(e) Disputed service tax liability 2.49 14.57
(f) Guarantees given by Company's Bankers on behalf of the Company to third parties 36.20 55.16
(g) (i) Claims against the Company not acknowledged as debts 13.46 23.96
(ii) Liability in respect of claim made by workers and contract labourers Amount not Amount not
ascertainable ascertainable
4. Estimated amount of contracts remaining to be executed on capital account and not provided
for (net of advances) 2,29.50 3,05.81

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NOTES TO ACCOUNTS
5. The identification of Micro, Small and Medium enterprises is based on the management’s
knowledge of their status. The Company has not received any intimation from
suppliers regarding their status under “The Micro, Small and Medium Enterprises
Development Act, 2006”.
6. The Company has executed a Deed of Conveyance on 6th May, 2011 in respect of its plot of
land at Jogeshwari for which the Company had entered into an agreement on 27th December
2005 to develop the said plot of land. Pursuant to the said conveyance deed, the Company
has secured 41% of the constructed area in return for the transfer of 59% of its rights in the
said land. The profit arising on the said transaction will be accounted in the year 2011-12
in which the transaction is completed.
7. Supplementary Statutory Information Current Year Previous Year
(` in lacs) (` in lacs)
7.1 Auditors’ Remuneration:
As an Auditor:
(i) Audit fees 10.00 8.00
(ii) Tax audit fees 4.00 3.50
(iii) Limited Review 1.75 1.50
In other Capacity:
(iv) Fees for taxation matters 7.45 7.56
(v) Fees for certification and other matters 1.30 1.00
(vi) Out of pocket expenses 0.40 0.40
7.2 (a) Managerial Remuneration to Chairman & Managing Director, Executive
Vice-Chairperson and Executive Director:
(1) To Chairman & Managing Director, Executive Vice-Chairperson and Executive
Director:
(i) Salaries 59.04 53.14
(ii) Contribution to Provident and Other Funds 15.94 14.05
(iii) Perquisites and other allowance 53.17 16.47
(iv) Commission 78.75 —
2,06.90 83.66
Note:
As the liabilities for gratuity and leave encashment are provided on an actuarial
basis for the Company as a whole, the amounts pertaining to the directors are
not included above.
(2) To other Directors:
Commission (included in 'Other Expenses') 15.00 —
(b) Computation of commission payable to Chairman & Managing Director, Executive
Vice-Chairperson and Executive Director.
Profit before taxation and prior period adjustments: 20,35.25 11,39.61
Add:
Depreciation charged in Accounts 9,23.11 9,46.37
Managerial Remuneration (including Commission) 2,06.90 83.66
Directors' Fees 3.30 3.20
Provision for doubtful debts advances 10.50 3.50
Commission to other Directors 15.00 —
Prior Period Adjustments (Net) (1,05.25) 1,89.53
Assets written off as per Accounts 1,86.11 5,02.60
Loss on sale of fixed assets as per Accounts (Net) 7.70 —
12,47.37 17,28.86
Less:
Depreciation as per the Companies Act, 1956 9,23.11 9,46.37
Profit on sale of fixed assets as per Accounts (Net) — 1.56
9,23.11 9,47.93

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NOTES TO ACCOUNTS
Current Year Previous Year
(` in lacs) (` in lacs)
Net Profit as per Section 309(5) of the Companies Act, 1956 23,59.51 19,20.54
Commission to Chairman & Managing Director, Executive Vice-Chairperson, Executive 1,26.00 *
Director in terms of Agreement
Restricted to 78.75 *
Commission to other Directors @ 1% thereof, ` 23.59 lacs (Previous Year: Nil)
which the Directors have agreed to restrict to 15.00 *
* No Commission was payable in the prerivous year to the Chairman & Managing
Director, Executive Vice-Chairperson, Executive Director and other Directors on
account of inadequacy of profit.

7.3 Licensed Capacity, Installed Capacity and Actual Production:

Year ended March 31, 2011 Year ended March 31, 2010
Product Licensed Installed Actual Licensed Installed Actual
Capacity Capacity Production Capacity Capacity Production
(Tonnes) (Tonnes) (Tonnes) (Tonnes) (Tonnes) (Tonnes)
I. Phosphorous Compounds: 45,700 35,000 29,023 45,700 35,000 24,558
II. Chemicals: 10,800 10,400 7,285 10,800 10,400 6,968
IlI. Organic Manure: *31,700 12,000 3,300 *31,700 12,000 3,765

Notes:
(a) Installed Capacity is as certified by the Chairman and Managing Director on which the Auditors have relied, being a technical matter.
(b) Production includes quantities produced for internal consumption and job work.
(c) Production excludes formulations produced out of captive/bought out technical grade materials.
(d) Licensed Capacity includes capacity as acknowledged by the Directorate General of Technical Development/Secretariat for Industrial Approvals.
(e) *Capacity being intimated to Secretariat for Industrial Approvals, for acknowledgement.

7.4 The Company has availed the exemption for export oriented Company (whose export is
more than 20% of the turnover) as per the notification dated February 8, 2011 issued by
Ministry of Corporate Affairs and accordingly the additional information pursuant to the
provisions of paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b) and 3(ii)(d) of part II of Schedule VI to the
Companies Act, 1956 has not been disclosed in the financial statements.

7.5 Consumption of Raw Materials, Components and Spare Parts:

Current Year Previous Year

(` in lacs) Percentage (` in lacs) Percentage
1. Raw Materials:
Imported: 61,60.50 48.82 54,96.44 53.41
Indigenous: 64,59.38 51.18 47,93.85 46.59
126,19.88 100.00 102,90.29 100.00
2. Components:
Imported Nil — Nil —
Indigenous Nil — Nil —
3. Spare Parts:
Imported Nil — Nil —
Indigenous Nil — Nil —

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NOTES TO ACCOUNTS
Current Year Previous Year
(` in lacs) (` in lacs)
7.6. Value of Imports on C.I.F. basis:
1. Raw Materials 58,00.11 62,02.15
2. Components and Spare Parts* — 1.43
3. Capital Goods 54.02 39.40
4. Purchase of Traded Goods 2,65.50 1,99.03
*In giving the above information, the Company has taken the view that Components and Spare
Parts as referred to in Clause 4-D(a) of Part II of Schedule VI cover only such items as go directly
into production and those used as spares for repairs and maintenance of Plant and Machinery.
7.7. Expenditure in Foreign Currency (on accrual basis):
(a) Interest 10.95 19.27
(b) Container Rental Charges 84.92 57.68
(c) Freight Outwards 37.87 66.62
(d) Travelling and Conveyance 71.67 30.59
(e) Discount on Sales 17.89 23.32
(f) Bank Charges 1.77 1.96
(g) Commission on Export Sales 2.46 8.58
(h) Export Product Registration 72.54 27.39
(i) Others 4.78 7.13
7.8 Earnings in Foreign Exchange (on accrual basis):
(a) Exports of Goods on F.O.B. basis 60,34.90 53,77.11
(b) Commission 57.61 15.18
(c) Technical Fees 1,12.16 —
7.9 Remittance in Foreign Currency on account of Dividend:
During the year, the Company has not remitted any amount in foreign currency on account of dividend.
The details of dividend paid in respect of shares held by non-residents on repatriation basis are as under:
(a) Number of Non-resident shareholders 107 114
(b) Number of Equity Shares held by them 73,305 56,459
(c) (i) Amount of dividend paid (` in lacs) 1.47 0.28
(ii) Year to which dividend relates 2009-10 2008-09
8. (a) Research and Development costs, as certified by the Management, debited to the Profit and Loss
Account are as under:
(a) *Revenue expenses debited to Research and Development Expenses Account and other
heads of accounts 2,07.59 1,97.37
(b) Depreciation on Research and Development Equipment 44.76 41.35
2,52.35 2,38.72

* includes ` 64.94 lacs, ` 38.33 lacs and ` 72.91 lacs (Previous Year: ` 73.80 lacs,
` 41.90 lacs and ` 55.45 lacs ) in respect of Research and Development units at Roha, Lote
and Mumbai respectively for which application for approval is made to Department of Science
& Industrial Research, Ministry of Science & Technology.
(b) Capital Expenditure incurred during the year on Research and Development [including
capital expenditure on qualifying assets of ` 23.82 lacs, ` 10.78 lacs and ` 20.76 lacs
(Previous Year: ` 0.72 lac, ` 0.09 lac and ` 25.28 lacs) in respect of Research and Development
Units at Roha, Lote and Mumbai respectively for which application for approval is made to
Department of Science & Industrial Research, Ministry of Science & Technology). 57.14 26.10

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SCHEDULE ‘T’— (Contd.)

NOTES TO ACCOUNTS
Current Year Previous Year
(` in lacs) (` in lacs)
9. (Short)/Excess Accruals written back (Net) comprises of the following:
(1) Raw Materials 0.70 (2.01)
(2) Export Incentives 2.63 0.63
(3) Excise Duty 13.41 —
(4) Depreciation — 9.60
(5) Personnel Expenses (25.93) (2.60)
(6) Discount — (0.77)
(7) Others 0.68 (0.60)

8.51 4.25

As at 31st As at 31st
March, 2011 March, 2010
(` in lacs) (` in lacs)
10. Break up of Deferred Tax Assets and Deferred Tax Liabilities:
(a) Deferred Tax Assets
(i) Liabilities Allowable on Payment basis 1,97.68 2,35.18
(ii) Provision for Doubtful Debts/Advances 11.36 8.33
(iii) Unabsorbed Capital Loss 35.13 36.80
2,44.17 2,80.31
(b) Deferred Tax Liabilities
Depreciation 16,13.78 17,48.57
16,13.78 17,48.57

DEFERRED TAX LIABILITY (NET) 13,69.61 14,68.26

The Company has recognised deferred tax asset since the management believes that the reversal
of the timing difference on account of depreciation would result in sufficient future taxable income
against which the said deferred tax asset can be realised. Further, unabsorbed capital loss has
been recognised since the Company is in process of completing the transfer of capital assets
which will result in capital gains. (Also refer Note No. 6 above)

Current Year Previous Year

(` in lacs) (` in lacs)
11. Earnings Per Share:
(1) Profit after Tax 14,30.90 7,43.33
Less: Prior Period Adjustments (Net) 1,05.25 (1,89.53)
Add: Excess/(Short) provision for taxation for earlier years 16.07 (1,36.27)
Profit attributable to Equity Shareholders (A) 13,41.72 7,96.59

Nos. Nos.
(2) Weighted average number of Equity Shares outstanding (B) 10,905,630 10,905,630
` `
(3) Earning per Share (A)/(B):(Basic and Diluted) 12.30 7.30
(4) Nominal Value of Equity Share: 5.00 5.00

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NOTES TO ACCOUNTS
12. Details of Employee Benefits – Gratuity:
(I) Defined Benefit Plans
The Company has a defined benefit gratuity plan. Every employee who has completed five years or
more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year
of service. If an employee completes more than 25 years of service then instead of 15 days, he/she
will get gratuity on retirement at 22 days last drawn salary. The aforesaid liability is provided for on
the basis of an actuarial valuation made at the end of the financial year. The scheme is funded with
insurance company in the form of qualifying insurance policies.
(a) The amounts recognised in the statement of Profit and Loss Account are as follows:
(i) Defined Benefit Plan Current Year Previous Year
Gratuity Gratuity
(` in lacs) (` in lacs)
Current Service cost 87.07 79.11
Interest cost on benefit obligation 1,24.70 1,07.10
Expected return on plan assets (1,24.40) (97.52)
Net actuarial (gain) / loss recognised during the year 1,01.86 96.95
Amount included under the head personnel expenses in Schedule ‘Q’ Manufacturing
and Other Expenses. 1,89.23 1,85.64
Actual return on plan assets 1,19.11 89.96

(b) The amounts recognised in the Balance Sheet are as follows: As at As at

31st March, 2011 31st March, 2010
Defined Benefit DefinedB enefit
Plan - Gratuity Plan - Gratuity
(Funded) (Funded)
(` in lacs) (` in lacs)
Present value of funded obligation 17,26.61 15,11.46
Less: Fair value of plan assets 15,87.47 12,94.79
Net Liability included under the head Provision for Gratuity, in Schedule ‘N’-Provisions 1,39.14 2,16.67

(c) Changes in the present value of the defined benefit obligation : As at As at

31st March, 2011 31st March, 2010
Gratuity Gratuity
(` in lacs) (` in lacs)
Opening defined benefit obligation 15,11.45 12,98.21
Interest cost 1,24.70 1,07.10
Current service cost 87.07 79.11
Benefits paid (91.80) (62.71)
Actuarial (gains) / loss on obligation 95.18 89.74
Closing defined benefit obligation 17,26.60 15,11.45

(d) Changes in the fair value of plan assets are as follows: As at As at

31st March, 2011 31st March, 2010
Gratuity Gratuity
(` in lacs) (` in lacs)
Opening fair value of plan assets 12,94.79 9,62.65
Expected return 1,24.40 97.52
Contributions made by employer during the year 2,66.76 3,04.54
Benefits paid (91.80) (62.71)
Actuarial gains/(loss) (6.68) (7.21)
Closing fair value of plan assets 15,87.47 12,94.79

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NOTES TO ACCOUNTS
As at 31st As at 31st
March, 2011 March, 2010
Gratuity Gratuity
(` in lacs) (` in lacs)
(e) Expected contribution to defined benefit plan for the year 2011-12 1,50.00 2,25.00
(f) The major categories of plan assets as a percentage of fair value of total plan assets are as
follows: Current Year Previous Year
Insurer Managed Funds (Life Insurance Corporation of India) 85.28% 83.55%
Insurer Managed Funds (Aviva Life Insurance Company India Limited) 14.72% 16.45%
100.00% 100.00%
The overall expected rate of return on assets is determined based on the market prices
prevailing on that date, applicable to the period over which the obligation is to be settled.
There has been significant change in the expected rate of return on assets due to the
improved stock market scenario
Gratuity Gratuity
Current Year Previous Year
(g) The principal actuarial assumptions at the Balance Sheet date.
Discount rate 8.25% 8.25%
Expected rate of return on plan assets 9% 9%
Expected rate of salary increase 5% 5%
Mortality table LIC (1994-96) LIC (1994-96)
Ultimate Ultimate
Proportion of employees opting for early retirement 5% to 1% 5% to 1%
Notes:
1. The estimates of future salary increases, considered in actuarial valuation, takes
account of inflation, seniority, promotion and other relevant factors such as supply
and demand in the employment market.
2. Amounts for the current and previous four periods are as follows: [AS15 Para 120(n)] [1]
Gratuity
2011 2010 2009 2008 2007
Defined benefit obligation 17,26.60 * * * *
Plan assets 15,87.47 * * * *
Surplus / (deficit) (1,39.14) * * * *
Experience adjustments on plan liabilities 2,03.59 * * * *
Experience adjustments on plan assets 6.68 * * * *
* The disclosure required under Para 120(n)(ii) of Accounting Standard 15 Employee Benefits (Revised, 2003) pertaining to experience
adjustments on plan assets and plan liabilities is not given for previous four years on the ground that such information is not available
with the Company.
(II) Defined Contribution Plans
(i) Provident Fund is a defined contribution scheme established under a State Plan.
(ii) Superannuation Fund is a defined contribution scheme. The scheme is funded with an
insurance company in the form of a qualifying insurance policy.
(iii) Defined Contribution Plan Current Year Previous Year
(` in lacs) (` in lacs)
Current service cost included under the head Personnel Expense in Schedule ‘Q’
Manufacturing and Other Expenses:
Provident Fund 1,40.57 1,25.29
Family Pension Fund 62.62 63.71
Superannuation Fund 70.41 65.24

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NOTES TO ACCOUNTS
13. Segment Information
1. Information About Primary Business Segments: Current Year Previous Year
(` in lacs) (` in lacs)
Particulars Chemicals Environment Total Chemicals Environment Total
REVENUE:
External Revenue: 263,90.79 12,14.49 276,05.28 231,64.76 8,27.03 239,91.79
Un-allocated revenue : 2,00.02 1,82.83
Total Revenue: 278,05.30 241,74.62
RESULT:
Segment result: 34,23.61 2,70.57 36,94.18 28,23.32 1,26.41 29,49.73
Un-allocated expenditure net of un-allocated income: 11,98.96 9,03.16
Interest Expenses: 5,65.22 7,17.43
Profit before taxation but after prior period adjustments: 19,30.00 13,29.14
Provision for Taxation:
Current: 7,03.00 1,26.00
In respect of earlier years : (16.07) 1,36.27
Minimum Alternative Tax Entitlement — (1,78.75)
Deferred: (98.65) 4,49.03
Profit/(Loss) after tax: 13,41.72 7,96.59
OTHER INFORMATION:
Segment Assets: 197,60.28 8,74.74 206,35.02 193,68.42 9,34.05 203,02.47
Un-allocated Assets: 31,30.08 27,26.18
Total Assets: 237,65.10 230,28.65
Segment Liabilities: (42,40.21) (2,57.35) (44,97.56) (33,72.35) (1,63.60) (35,35.95)
Un-allocated Liabilities: (81,85.62) (92,77.21)
Total Liabilities: (126,83.18) (128,13.16)
Segment Capital expenditure: 11,00.35 13.41 11,13.76 6,76.34 15.29 6,91.63
Un-allocated Capital expenditure: 1,74.69 26.37
Segment Depreciation and Amortisation: 7,99.82 81.19 8,81.01 8,51.70 45.12 8,96.82
Un-allocated Depreciation and Amortisation: 93.19 96.14
Segment Non-cash expenses other than
Depreciation and Amortisation: 2,82.65 31.87 3,14.52 5,88.08 4.38 5,92.46
Un-allocated Non-cash expenses other than
Depreciation and Amortisation: — 5.45
2. Information About Secondary Business Segments:
Domestic Exports Total Domestic Exports Total
Revenue: 215,82.21 62,23.09 278,05.30 186,97.39 54,77.23 241,74.62
Carrying amount of Assets: 226,48.86 11,16.24 237,65.10 221,81.08 8,47.57 230,28.65
Capital Expenditure: 12,34.43 54.02 12,88.45 7,18.00 — 7,18.00
3. Notes:
1. The Company is organised into two business segments namely :
(a) Chemicals - Comprising of Industrial and Specialty Chemicals and Pesticides Intermediates.
(b) Environment - Comprising of Soil enricher, Bio - pesticides and other Bio products.
2. Segment revenue in the above segments includes sales, export incentives, processing charges and other income from operations.
3. Segment Revenue in the geographical segments considered for disclosure are as follows :
(a) Revenue within India includes sales to customers located within India.
(b) Revenue outside India includes sales to customers located outside India.
4. Segment Revenue, Results, Assets and Liabilities includes the respective amounts identifiable to each of segments and amounts allocated on
a reasonable basis.

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NOTES TO ACCOUNTS
14. Related Party disclosures as required by Accounting Standard (AS) -18 “Related Party Disclosures”, notified by Companies (Accounting Standards) Rules,
2006 (as amended) are given below:
(a) Relationships:
1. Subsidiary Company:
Kamaljyot Investments Limited
2. Associate Companies:
RomVijay Bioo Tech Private Limited
Excel Bio Resources Limited
3. Joint Venture Company:
Wexsam Limited, Hong Kong
4. Enterprises over which Key Management Personnel and their relatives have significant influence:
Agrocel Industries Limited
Anshul Specialty Molecules Limited
C.C. Shroff Research Institute
C.C. Shroff Self Help Centre
Dipkanti Investments & Financing Private Limited
Excel Crop Care Limited
Good Rasayan Limited
Hyderabad Chemical Supplies Limited
Hyderabad Chemical Products Limited
Mumukshu Finance & Services Private Limited
Parul Chemicals Limited
Pritami Investments Private Limited
Samarth Gram Vikas Trust
Shrodip Investments Private Limited
Transpek Industry Limited
Transpek-Silox Industry Limited
Transpek Industry (Europe) Limited
TML Industries Limited
Utkarsh Chemicals Private Limited
5. Key Management Personnel and their Relatives:
(a) Key Management Personnel:
Shri Ashwin C. Shroff (Chairman and Managing Director)
Smt. Usha A. Shroff (Executive Vice Chairperson)
Shri Dipesh K. Shroff (Director)
Shri Atul G. Shroff (Director)
Shri Ravi Ashwin Shroff (Son of Shri Ashwin C. Shroff)
Shri S.R.Potdar (Executive Director)
(b) Relatives:
Shri Kantisen C. Shroff (Father of Shri Dipesh K. Shroff)
Smt. Shruti Atul Shroff (Wife of Shri Atul G. Shroff)
Kum. Vishwa Atul Shroff (Daughter of Shri Atul G. Shroff)
Smt. Chanda Kantisen Shroff (Mother of Shri Dipesh K. Shroff)
Smt. Preeti Dipesh Shroff (Wife of Shri Dipesh K. Shroff)
Shri Hrishit Ashwin Shroff (Son of Shri Ashwin C. Shroff)
Smt. Chetna Praful Saraiya (Sister of Shri Atul G. Shroff)
Shri Praful Manilal Saraiya (Brother in law of Shri Atul G. Shroff)
Smt. Hiral Tushar Dayal (Sister of Shri Atul G. Shroff)
Shri Tushar Charandas Dayal (Brother in law of Shri Atul G. Shroff)
Smt. Anshul Amrish Bhatia (Daughter of Shri Ashwin C. Shroff)
Shri Dilip G. Bhatia (Brother in law of Shri Ashwin C. Shroff)

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NOTES TO ACCOUNTS
(b) The following transactions were carried out with the related parties in the ordinary course of business:
(` in lacs)
Sr. Nature of Transactions Subsidiary Associate Other Key Mgmt. Relatives of Total
No. Company Companies Enterprises Personnel Key Mgmt.
Personnel
(1) INCOME
(a) Sale of Goods (Net of Excise Duty)
Excel Crop Care Limited — — 26,32.07 — — 26,32.07
(—) (—) (24,54.57) (—) (—) (24,54.57)
Others — — 3,51.87 — — 3,51.87
(—) (—) (3,33.54) (—) (—) (3,33.54)
Total — — 29,83.94 — — 29,83.94
(—) (—) (27,88.11) (—) (—) (27,88.11)
(b) Rent Received
Excel Crop Care Limited — — 38.40 — — 38.40
(—) (—) (38.40) (—) (—) (38.40)
Total — — 38.40 — — 38.40
(—) (—) (38.40) (—) (—) (38.40)
(c) Processing Charges
Excel Crop Care Limited — — 11,59.01 — — 11,59.01
(—) (—) (10,65.22) (—) (—) (10,65.22)
Transpek Industry Limited — — 3.18 — — 3.18
(—) (—) (45.81) (—) (—) (45.81)
Total — — 11,62.19 — — 11,62.19
(—) (—) (11,11.03) (—) (—) (11,11.03)
(d) Royalty
Excel Crop Care Limited — — 1,02.83 — — 1,02.83
(—) (—) (72.50) (—) (—) (72.50)
Total — — 1,02.83 — — 1,02.83
(—) (—) (72.50) (—) (—) (72.50)
(e) Dividend Received
TML Industries Limited — — 13.33 — — 13.33
(—) (—) (13.33) (—) (—) (13.33)
Transpek -Silox Industry Limited — — 1,12.08 — — 1,12.08
(—) (—) (1,04.61) (—) (—) (1,04.61)
Others — — 6.51 — — 6.51
(—) (—) (5.17) (—) (—) (5.17)
Total — — 1,31.92 — — 1,31.92
(—) (—) (1,23.11) (—) (—) (1,23.11)
(f) Reimbursement of expense/salary
incurred on behalf of
Excel Crop Care Limited — — — — — —
(—) (—) (26.68) (—) (—) (26.68)
Total — — — — — —
(—) (—) (26.68) (—) (—) (26.68)
(Figures in brackets relate to the Previous Year)

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NOTES TO ACCOUNTS

(` in lacs)
Sr. Nature of Transactions Subsidiary Associate Other Key Mgmt. Relatives of Total
No. Company Companies Enterprises Personnel Key Mgmt.
Personnel
2. EXPENSES
(a) Purchase of Goods
Excel Crop Care Limited — — — — — —
(—) (—) (1,99.56) (—) (—) (1,99.56)
Transpek Industry Limited — — — — — —
(—) (—) (28.05) (—) (—) (28.05)
Agrocel Industries Limited — — 1,54.69 (—) (—) 1,54.69
(—) (—) (—) (—) (—) (—)
Others — — 5.29 — — 5.29
(—) (—) (7.76) (—) (—) (7.76)
Total — — 1,59.98 — — 1,59.98
(—) (—) (2,35.37) (—) (—) (2,35.37)
(b) Processing Charges
Good Rasayan Limited — — 48.77 — — 48.77
(—) (—) (39.64) (—) (—) (39.64)
Total — — 48.77 — — 48.77
(—) (—) (39.64) (—) (—) (39.64)
(c) Remuneration
Shri Ashwin C. Shroff — — — 75.61 — 75.61
(—) (—) (—) (24.26) (—) (24.26)
Smt. Usha A. Shroff — — — 70.71 — 70.71
(—) (—) (—) (24.24) (—) (24.24)
Shri S. R. Potdar — — — 60.59 — 60.59
(—) (—) (—) (35.16) (—) (35.16)
Total — — — 2,06.91 — 2,06.91
(—) (—) (—) (83.66) (—) (83.66)
(d) Directors’ Sitting Fees
Dipesh K. Shroff — — — 0.65 — 0.65
(—) (—) (—) (0.45) (—) (0.45)
Atul G. Shroff — — — 0.20 — 0.20
(—) (—) (—) (0.10) (—) (0.10)
Total — — — 0.85 — 0.85
(—) (—) (—) (0.55) (—) (0.55)
(e) Technical Fees
Excel Bio Resources Limited — — 2.50 — — 2.50
(—) (—) (—) (—) (—) (—)
Total — — 2.50 — — 2.50
(—) (—) (—) (—) (—) (—)
(Figures in brackets relate to the Previous Year)

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NOTES TO ACCOUNTS

(` in lacs)
Sr. Nature of Transactions Subsidiary Associate Other Key Mgmt. Relatives of Total
No. Company Companies Enterprises Personnel Key Mgmt.
Personnel
(f) Charity & Donation
Shroff Foundation Trust — — 4.00 — — 4.00
(—) (—) (—) (—) (—) (—)
Rashtriya Seva Trust — — 1.50 — — 1.50
(—) (—) (—) (—) (—) (—)
Shri Seetha Rama Seva Sadan — — 1.00 — — 1.00
(—) (—) (—) (—) (—) (—)
Total — — 6.50 — — 6.50
(—) (—) (—) (—) (—) (—)
(g) Retirement Benefits
Shri K.C. Shroff — — — — 8.42 8.42
(—) (—) (—) (—) (3.60)(3.60)
Total — — — — 8.42 8.42
(—) (—) (—) (—) (3.60)(3.60)
(h) Reimbursement of expense/salary
incurred on behalf of
Transpek Industry (Europe) Limited — — 28.08 — — 28.08
(—) (—) ( 27.39 ) (—) (—) (27.39)
Excel Bio Resources Limited — — 31.09 — — 31.09
(—) (—) (—) (—) (—) (—)
Total — — 59.17 — — 59.17
(—) (—) ( 27.39 ) (—) (—) (27.39)
(i) Rent Paid
Excel Crop Care Limited — — 21.86 — — 21.86
(—) (—) (20.04) (—) (—) (20.04)
Total — — 21.86 — — 21.86
(—) (—) (20.04) (—) (—) (20.04)
(j) Intangible Assets
Transpek Industry (Europe) Limited
(Product Registration Expenses) — — 54.02 — — 54.02
(—) (—) (—) (—) (—) (—)
Total — — 54.02 — — 54.02
3. FINANCE / OTHERS
(a) Loans / Advance gi ven
Kamaljyot Investments Ltd. 65.00 — — — — 65.00
(40.00) (—) (—) (—) (—) (40.00)
Transpek Industry (Europe) Limited — — 81.80 — — 81.80
(—) (—) (34.65) (—) (—) (34.65)
Total 65.00 — 81.80 — — 1,46.80
(40.00) (—) (34.65) (—) (—) (74.65)
(Figures in brackets relate to the Previous Year)

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NOTES TO ACCOUNTS

(` in lacs)
Sr. Nature of Transactions Subsidiary Associate Other Key Mgmt. Relatives of Total
No. Company Companies Enterprises Personnel Key Mgmt.
Personnel
(b) Dividend Paid
Ashwin C Shroff — — — 1.66 — 1.66
(—) (—) (—) (0.42) (—) (0.42)
Atul G Shroff — — — 1.20 — 1.20
(—) (—) (—) (0.30) (—) (0.30)
Kantisen C Shroff — — — — 1.14 1.14
(—) (—) (—) (—) (0.27) (0.27)
Ravi A Shroff — — — 0.95 — 0.95
(—) (—) (—) (0.24) (—) (0.24)
Dilip G Bhatia — — — — 2.08 2.08
(—) (—) (—) (—) (0.52) (0.52)
Anshul Specialty Molecules Ltd — — 37.80 — — 37.80
(—) (—) (9.45) (—) (—) (9.45)
Utkarsh Chemicals Private Limited — — 23.67 — — 23.67
(—) (—) (5.55) (—) (—) (5.55)
Others — — 13.12 0.36 3.22 16.70
(—) (—) (3.28) (0.09) (0.81) (4.18)
Total — — 74.59 4.17 6.44 85.20
(—) (—) (18.28) (1.05) (1.60) (20.93)
(c) Sale of Fixed Assets
Excel Crop Care Limited — — — — — —
(—) (—) (1.12) (—) (—) (1.12)
Total — — — — — —
(—) (—) (1.12) (—) (—) (1.12)
4. OUTSTANDINGS AS AT THE BALANCE
SHEET DATE
(a) Amounts R eceivable / Recoverable
Excel Crop Care Limited — — 9,83.02 — — 9,83.02
(—) (—) (11,91.33) (—) (—) (11,91.33)
Others — — 60.05 — — 60.05
(—) (—) (48.71) (—) (—) (48.71)
Total — — 10,43.07 — — 10,43.07
(—) (—) (12,40.04) (—) (—) (12,40.04)
(b) Advance / Loans Recoverable
Kamaljyot Investments Limited 3,20.00 — — — — 3,20.00
(2,55.00) (—) (—) (—) (—) (2,55.00)
Transpek Industry (Europe) Limited — — 4.25 — — 4.25
(—) (—) (7.26) (—) (—) (7.26)
Total 3,20.00 — 4.25 — — 3,24.25
(2,55.00) (—) (7.26) (—) (—) (2,62.26)
(Figures in brackets relate to the Previous Year)

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NOTES TO ACCOUNTS
(` in lacs)
Sr. Nature of Transactions Subsidiary Associate Other Key Mgmt. Relatives of Total
No. Company Companies Enterprises Personnel Key Mgmt.
Personnel
(c) Amount Payable (Net)
Anshul Specialty Molecules Limited — — 4.89 — — 4.89
(—) (—) (—) (—) (—) (—)
Good Rasayan Limited — — 7.85 — — 7.85
(—) (—) (18.67) (—) (—) (18.67)
Transpek Industry Limited — — — — — —
(—) (—) (13.48) (—) (—) (13.48)
Agrocel Industries Limited — — 1,28.99 — — 1,28.99
(—) (—) (—) (—) (—) (—)
Others — — — — — —
(—) (—) (4.10) (—) (—) (4.10)
Total — — 1,41.73 — — 1,41.73
(—) (—) (36.25) (—) (—) (36.25)
(Figures in brackets relate to the Previous Year)

15. Foreign exchange derivatives and exposures outstanding as at the Balance Sheet date:

Nature of Instrument Currency As at 31st As at 31st As at 31st As at 31st

March, 2011 March, 2011 March, 2010 March, 2010
Foreign Currency Foreign Currency
Value Value
(` in lacs) (` in lacs) (` in lacs) (` in lacs)
(a) Forward contract – Buy for Hedging Purpose
(i) Loans USD 4,20.90 9.41 7,70.71 16.64
(ii) Interest/Other Expenses USD — — 2.92 0.06
(b) Un-hedged Foreign Currency Exposure on:
(i) Import Creditors GBP 81.40 1.13 11.26 0.17
USD 4,69.73 9.26 3,68.52 8.16
(ii) Export Debtors EUR 41.41 0.66 92.09 1.52
USD 9,77.39 21.86 7,26.20 16.09
(iii) Commission receivable GBP 31.24 0.43 5.18 0.08
(iv) Loans taken USD 4,20.90 9.41 — —
(v) Loans given GBP — — 7.26 0.10
(vi) Bank Balances USD 16.68 0.38 16.84 0.37
16. Excise duty on sales amounting to ` 18,42.23 lacs (Previous Year: ` 13,22.76 lacs) has been reduced from sales in Profit & Loss Account and excise duty
on increase/(decrease) in stocks amounting to ` 34.19 lacs (Previous Year: ` 29.32 lacs) has been considered as expense in Schedule ‘Q’.
17. The Company has 33.33% interest in jointly controlled entity Wexsam Limited, Hong Kong. The Company had initiated discussion with other stakeholders
for the closure of this Company. Since there were no activities in the said jointly controlled entity for the past three years, the financials are not available.
Accordingly, the proportionate interest of the Company in the said jointly controlled entity has not been disclosed. Further, the Company has made provision
for diminution in value of this investment amounting to ` 27.26 lacs.

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 EXCEL INDUSTRIES LIMITED
SCHEDULE FORMING PART OF
THE BALANCE SHEET AND THE PROFIT AND LOSS ACCOUNT

SCHEDULE ‘T’— (Contd.)

NOTES TO ACCOUNTS As at 31st

March, 2011
(` in lacs)
18. Details of Loan given to Subsidiary Company:
Kamaljyot Investments Limited 3,20.00
Balance as at 31st March, 2011
(Previous Year: ` 2,55.00 lacs)
Maximum amount outstanding during the year ` 3,20.00 lacs (Previous Year: ` 2,55.00 lacs)
There is no repayment schedule in respect of this loan.
19. Operating Leases
Office premises and godowns are obtained on operating leases for various tenors. Except for the Office
premises, none of the operating leases are renewable. In respect of Office premises, the operating lease are
renewable for further period of two years, with an escalation clause of 15% over the existing lease rent. There
are no restrictions imposed by lease agreements / arrangements. All the aforestated leases are cancellable as
per terms and condition mentioned in the agreement.
2010-11 2009-10
(` in lacs) (` in lacs)
(i) Lease payments for the year 28.06 30.36
(ii) Sub-lease payments received during the year Nil Nil
(iii) Minimum lease payments as at 31st March
(a) Not later than one year 26.72 25.34
(b) Later than one year but not later than five years 42.61 68.50
(c) Later than five years Nil Nil
The company has leased out its office premises on operating leases for various tenors. There is no escalation
clause in the lease agreements / arrangements. There are no restrictions imposed by lease agreements/
arrangements.
2010-11 2009-10
(` in lacs) (` in lacs)
There are no uncollectible minimum lease payments receivable at the Balance Sheet date.
(Previous Year: Nil)
Future Minimum Lease payments
(a) Not later than one year 38.40 38.40
(b) Later than one year but not later than five years 1,31.20 54.40
(c) Later than five years Nil Nil

20. Previous year’s figures have been regrouped/rearranged wherever necessary to conform to this year’s classification.

As per our report of even date

For S. R. BATLIBOI & CO. For and on behalf of the Board of Directors of Excel Industries Limited
Firm Registration No: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President – Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date: 20 May 2011 Date: 20 May 2011

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 EXCEL INDUSTRIES LIMITED
BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE

I. Registration Details:
(a) Registration No.: 11807
(b) State Code: 11
(c) Balance Sheet Date: 31-03-2011
II. Capital raised during the year: (` in Thousands)
Public Issue Rights Issue
Nil Nil
Bonus Issue Private Placement
Nil Nil
III. Position of Mobilisation and Deployment of Funds:
(` in Thousands)
(a) Total Liabilities 1,763,330
(b) Total Assets 1,763,330
(c) Sources of Funds:
(i) Paid-up Capital 54,528
(ii) Reserves and Surplus 1,053,663
(iii) Secured Loans 272,543
(iv) Unsecured Loans and Deferred Payment Liabilities 245,635
(v) Deferred Tax Liability (Net) 136,961
(d) Application of Funds:
(i) Net Fixed Assets 1,009,698
(ii) Intangible Assets 8,845
(iii) Investments 136,201
(iv) Net Current Assets 608,586
(v) Miscellaneous Expenditure Nil
(vi) Accumulated Losses Nil
IV. Performance of the Company:
(a) Turnover (Gross Revenue) 2,780,530
(b) Total Expenditure 2,577,005
(c) Profit Before Tax 203,525
(d) Profit After Tax 143,090
(e) Earning Per Share: (`) 12.30
(f) Dividend Rate % 75%
V. Generic names of Three Principal Products:
I.T.C. Code Name of the Product
(i) 2920.90.90 DIETHYL THIO PHOSPHORYL CHLORIDE
(ii) 2813.90.90 PHOSPHOROUS PENTASULPHIDE
(iii) 2942.00.90 HYDROXY ETHYLEDENE DIPHOSPHONIC ACID

For and on behalf of the Board of Directors of Excel Industries Limited

A. C. SHROFF U. A. SHROFF
Chairman & Managing Director Executive Vice Chairperson

KAILAS DABHOLKAR S. K. SINGHVI

Vice President – Finance and Taxation Company Secretary

Place : Mumbai,
Date : 20 May 2011

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 EXCEL InDUSTRIES LIMITED

AUDITORS’ REPORT

TO,
THE BOARD OF DIRECTORS,
EXCEL INDUSTRIES LIMITED
1. We have audited the attached consolidated balance sheet of Excel Industries Limited (‘the Company’) and its subsidiary,
associates and the joint venture (together referred to as ‘the Group’), as at 31 March 2011, and also the consolidated profit
and loss account and the consolidated cash flow statement for the year ended on that date annexed thereto. These financial
statements are the responsibility of the Company’s management and have been prepared by the management on the basis
of separate financial statements and other financial information regarding components. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. 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. We report that the consolidated financial statements have been prepared by the Company’s management in accordance with
the requirements of Accounting Standards (‘AS’) 21, Consolidated Financial Statements, AS 23, Accounting for Investments
in Associates in Consolidated Financial Statements and AS 27, Financial Reporting of Interests in Joint Ventures, notified
pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended).
4. In our opinion and to the best of our information and according to the explanations given to us, the consolidated financial
statements give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the consolidated balance sheet, of the state of affairs of the Group as at 31 March 2011;
(b) in the case of the consolidated profit and loss account, of the profit for the year ended on that date; and
(c) in the case of the consolidated cash flow statement, of the cash flows for the year ended on that date.

For S. R. BATLIBOI & CO.

Firm registration number: 301003E
Chartered Accountants
per VIjAy MAnIAR
Partner
Membership No. 36738
Place : Mumbai,
Date : 20 May 2011

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 EXCEL InDUSTRIES LIMITED
CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2011

As at 31st As at 31st
March, 2011 March, 2010
Schedule (` in lacs) (` in lacs) (` in lacs)
SOURCES OF FUNDS
1. SHAREHOLDERS’ FUNDS:
(a) Share Capital ‘A’ 5,45.28 5,45.28
(b) Reserves and Surplus ‘B’ 106,14.86 96,91.70
111,60.14 102,36.98
2. LOAN FUNDS:
(a) Secured Loans ‘C’ 27,25.43 34,18.00
(b) Unsecured Loans ‘D’ 24,56.35 25,93.05
51,81.78 60,11.05
3. DEFERRED TAX LIABILITY (NET) 13,69.64 14,68.31
(Refer Note No. 14 of Schedule ‘T’).
TOTAL 177,11.56 177,16.34

APPLICATION OF FUNDS
1. FIXED ASSETS: ‘E’
(a) Gross Block 212,53.77 215,10.35
(b) Less:Depreciation 114,52.11 114,13.06
(c) Net Block 98,01.66 100,97.29
(d) Capital Work-in-Progress including capital advances 2,97.40 3,44.87
100,99.06 104,42.16

2. INTANGIBLE ASSETS ‘F’ 88.45 85.52

3. INVESTMENTS ‘G’ 17,53.16 12,12.96
4. CURRENT ASSETS, LOANS AND ADVANCES:
(a) Inventories ‘H’ 38,54.07 33,81.71
(b) Sundry Debtors ‘I’ 59,51.30 56,36.90
(c) Cash and Bank Balances ‘J’ 4,17.53 2,80.87
(d) Other Current Assets ‘K’ 2,99.27 2,98.66
(e) Loans and Advances ‘L’ 13,81.46 17,12.18
119,03.63 113,10.32
LESS: CURRENT LIABILITIES AND PROVISIONS:
(a) Liabilities ‘M’ 45,75.31 38,92.64
(b) Provisions ‘N’ 15,57.43 14,41.98
61,32.74 53,34.62
NET CURRENT ASSETS 57,70.89 59,75.70
TOTAL 177,11.56 177,16.34

NOTES ON ACCOUNTS ‘T’

The schedules referred to above and notes to accounts form an integral part of the consolidated Balance Sheet.
As per our report of even date
For and on behalf of the Board of Directors of
For S. R. BATLIBOI & CO. Excel Industries Limited
Firm Registration No: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President – Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date : 20 May 2011 Date : 20 May 2011

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 EXCEL InDUSTRIES LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

Current Previous
year Year
Schedule (` in lacs) (` in lacs) (` in lacs)
INCOME
Sale of Products 272,54.14 235,54.46
Less : Excise Duty (Refer Note No. 17 of Schedule ‘T’) 18,42.23 13,22.76
254,11.91 222,31.70
Processing Charges 14,33.93 13,07.21
Other Income from Operations ‘O’ 7,65.56 4,34.26
Other Income ‘P’ 2,28.42 2,14.69
278,39.82 241,87.86
EXPENDITURE
Manufacturing and Other Expenses ‘Q’ 247,13.29 208,16.64
(Increase)/Decrease in Stocks ‘R’ (4,81.23) 5,49.13
Depreciation/Amortisation 9,74.28 9,93.04
Interest ‘S’ 5,65.22 7,17.43
257,71.56 230,76.24
PROFIT BEFORE TAXATION 20,68.26 11,11.62
Less: Provision for Taxation:
Current Tax 7,04.30 1,27.00
Minimum Alternative Tax Entitlement (0.31) (1,78.75)
Deferred Tax (98.67) 4,49.01
6,05.32 3,97.26
PROFIT AFTER TAXATION BUT BEFORE PRIOR PERIOD ADJUSTMENTS 14,62.94 7,14.36
Add/(Less):
(a) Prior Period Adjustments (Net) (1,05.25) 1,89.53
(b) Provision for Taxation in respect of earlier years 16.07 (1,36.27)
(c) Share of Profit in Associate Company 25.21 0.59
(d) Share of Profit in Associate Company in respect of earlier year (0.51) —
(64.48) 53.85
NET PROFIT 13,98.46 7,68.21
Balance brought forward from previous year 13,36.52 11,22.65
PROFIT AVAILABLE FOR APPROPRIATION 27,34.98 18,90.86
Less : Appropriations
(a) Proposed Dividend 4,08.96 2,18.11
(b) Tax on Distributed Profits 66.34 36.23
(c) Transfer to General Reserve 11,00.00 3,00.00
15,75.30 5,54.34
Surplus carried to Balance Sheet 11,59.68 13,36.52
` `
EARNINGS PER SHARE
Consolidated Basic and Diluted Earnings Per Share 12.82 7.04
(Refer Note No. 9 in Schedule ‘T’)
Face Value per share (`) 5.00 5.00
NOTES ON ACCOUNTS ‘T’

The schedules referred to above and notes to accounts form an integral part of the consolidated Profit and Loss Account.
As per our report of even date
For and on behalf of the Board of Directors of
For S. R. BATLIBOI & CO. Excel Industries Limited
Firm Registration No: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President – Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date : 20 May 2011 Date : 20 May 2011

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 EXCEL InDUSTRIES LIMITED
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2011

For the year For the year

ended 31st ended 31st
March, 2011 March, 2010
(` in lacs) (` in lacs) (` in lacs) (` in lacs)
A. CASH FLOW FROM OPERATInG ACTIVITIES
Net Profit before Tax and Extraordinary Items 20,68.26 11,11.62
Adjustments for :
Depreciation/Amortisation of Intangible Assets 9,74.28 9,93.04
Bad Debts/Sundry Debit Balances Written Off (Net) 1,17.91 91.81
Loss/(Profit) on sale of Fixed Assets 7.70 (1.56)
Loss/(Profit) on sale of Long Term Investments (3.86) 4.81
Contribution/Provision for Gratuity/Leave Encashments 3,05.10 3,60.56
Assets written off 1,86.11 5,01.26
Investments written off — 1.34
Provision for Doubtful Debts/Advances 10.50 3.50
Sundry Credit Balances written back (41.84) (0.50)
Provision for Diminution in value of long-term investments (Net) — 35.15
Provision for Diminution in value of investments written back (13.28) —
Interest received (27.27) (26.13)
Dividend Received (1,48.66) (1,44.77)
Manufacturing Expenses Capitalised — (2,68.65)
Interest paid 5,65.22 7,17.43
Unrealised exchange loss 9.71 55.56
Share of Dividend from Associate Company 0.22 —
Excess Provision for depreciation — (9.85)
Short Provision for depreciation — 0.25
Short/(Excess) Provision for other items (Net) 8.51 5.35
19,50.35 23,18.60

Operating Profit before working capital changes 40,18.61 34,30.22

Adjustments for:
Trade and other receivables & Loans & Advances (3,55.67) 1.92
Inventories (4,72.36) 2,36.56
Trade Payables & other liabilities 6,02.56 (7,77.84)
(2,25.47) (5,39.36)

Cash generated from Operations 37,93.14 28,90.86

Interest paid 5,29.21 7,28.53
Direct taxes paid 5,15.40 1,22.30
10,44.60 8,50.83
Cash flow before extraordinary items 27,48.53 20,40.03
Prior Period Adjustments (Other than Taxation) (1,05.25) 1,89.53

Net cash from Operating Activities (A) 26,43.28 22,29.56

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 EXCEL InDUSTRIES LIMITED
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2011

CONSOLIDATED CASH FLOW STATEMENT (Contd.)

For the year For the year
ended 31st ended 31st
March, 2011 March, 2010
(` in lacs) (` in lacs) (` in lacs) (` in lacs)
B. CASH FLOW FROM InVESTInG ACTIVITIES
Purchase of fixed assets (11,86.95) (6,72.16)
Purchase of Intangible Assets (54.02) —
Sale of fixed assets 1,13.06 14.79
Purchase of Investments (5,02.45) (71.29)
Sale of Investments 3.86 63.61
Sundry Loans received/(given) 29.00 (7.98)
Interest received 33.83 26.38
Dividend received 1,48.66 1,44.77

Net Cash used in Investing Activities (B) (14,15.01) (5,01.88)

C. CASH FLOW FROM FInAnCIAL ACTIVITIES

Proceeds from borrowings 10,26.95 16,25.40
Repayment of borrowings (18,65.93) (31,93.41)
Dividend Paid (2,16.40) (58.47)
Tax on distributed Profits (36.23) (9.27)

Net cash used Financing Activities (C) (10,91.61) (16,35.75)

Net increase in cash and cash equivalents (A+B+C) 1,36.66 91.93

Cash and cash equivalents at the beginning of the year 2,80.87 1,88.94
Cash and cash equivalents at the end of the year 4,17.53 2,80.87

Components of Cash and Cash Equivalents:

1. Bank Balances in India:
With Scheduled Banks:
(i) In Unclaimed Dividend Accounts * 8.87 7.39
(ii) In Current Accounts 1,66.49 88.75
(iii) In Fixed Deposits Accounts 73.00 73.00
(iv) In Margin Money Accounts 1,69.17 1,11.73
4,17.53 2,80.87
Note:
* These balances are not available for use by the Company as they represent corresponding unpaid dividend liabilities.

As per our attached report of even date

For and on behalf of the Board of Directors of
For S. R. BATLIBOI & CO. Excel Industries Limited
Firm Registration No: 301003E
Chartered Accountants A. C. SHROFF U. A. SHROFF
Chairman and Managing Director Executive Vice Chairperson
per Vijay Maniar
Partner KAILAS DABHOLKAR S. K. SINGHVI
Membership No. 36738 Vice President- Finance and Taxation Company Secretary
Place : Mumbai Place : Mumbai
Date : 20 May 2011 Date : 20 May 2011

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 EXCEL InDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET

SCHEDULE ‘A’ As at 31st As at 31st

March, 2011 March, 2010
SHARE CAPITAL (` in lacs) (` in lacs)
Authorised :
3,80,00,000 (Previous Year: 3,80,00,000) Equity Shares of ` 5 each 19,00.00 19,00.00
8,50,000 (Previous Year: 8,50,000) 11% Cumulative Redeemable Preference Shares 85.00 85.00
of ` 10 each
3,00,000 (Previous Year: 3,00,000) Unclassified Shares of ` 5 each 15.00 15.00

20,00.00 20,00.00

Issued, Subscribed and Paid -up :

1,09,05,630 (Previous Year:1,09,05,630) Equity Shares of ` 5 each fully paid-up 5,45.28 5,45.28

TOTAL 5,45.28 5,45.28

SCHEDULE ‘B’ As at 31st As at 31st

March, 2011 March, 2010
RESERVES AND SURPLUS (` in lacs) (` in lacs) (` in lacs)
1. Capital Reserve:

(a) Profit on repurchase of Debentures 0.01 0.01

(b) Capital Redemption Reserve 0.02 0.02

(c) Government Grants/Subsidies 70.00 70.00

70.03 70.03
2. Securities Premium Account 1,81.08 1,81.08

3. General Reserve :

Balance as per last Balance Sheet 81,04.07 78,04.07

Add: Transferred from Profit and Loss Acoount 11,00.00 3,00.00

92,04.07 81,04.07
4. Share of Retained Earnings in Associate Company :

Balance as per last Balance Sheet — 9.39

Less: Reduction in Reserves on Cessation of Associate Company — 9.39

— —

5. Profit and Loss Account 11,59.68 13,36.52

TOTAL 106,14.86 96,91.70

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 EXCEL InDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET

SCHEDULE ‘C’ As at 31st As at 31st

March, 2011 March, 2010
SECURED LOANS (` in lacs) (` in lacs) (` in lacs)
1. From Banks:
(a) On Working Capital Demand Loan Accounts 9,99.97 9,99.97
(Refer Note No. 1 given below)
(b) On Cash Credit and Packing Credit Accounts 16,83.77 23,31.83
(Refer Note No. 1 given below)
(c) On Term Loan Accounts — 62.50
(d) Under Vehicle Finance 0.46 1.31
(Refer Note No. 2 given below)

26,84.20 33,95.61
2. From Others:
Under Vehicle Finance 41.23 22.39
(Refer Note No. 2 given below)

TOTAL 27,25.43 34,18.00

Notes:
1. Loans from Banks on Cash Credit and Packing Credit and Working Capital Demand Loan
Accounts are secured by hypothecation of all tangible movable assets, both present
and future, including stock of raw materials, finished goods, goods-in-process, stores,
book debts etc. and is secured by a second charge on the fixed assets at Roha and
Lote Parshuram. The aforesaid charges are exclusive of book debts and stocks which
are charged in favour of the Company’s bankers for securing borrowings for working
capital requirements.
2. Term Loan under Vehicle Finance from HDFC Bank Limited amounting to ` 0.46 lac
(Previous Year: ` 1.31 lacs) and from Kotak Mahindra Prime Limited amounting to
` 41.23 lacs (Previous Year: ` 22.39 lacs) respectively are secured by hypothecation
of the vehicles acquired by utilising the said loans.

SCHEDULE ‘D’ As at 31st As at 31st

March, 2011 March, 2010
UNSECURED LOANS (` in lacs) (` in lacs) (` in lacs)
1. Fixed Deposits 18,40.01 17,91.82
[Due within one year: ` 4,03.47 lacs (Previous Year: ` 2,36.07 lacs)]
2. Short Term Loans
(a) From Banks 4,16.34 7,51.23
[Due within one year: ` 4,16.34 lacs (Previous Year: ` 7,51.23 lacs)]
(b) Inter Corporate Deposits 2,00.00 50.00

[Due within one year: ` 2,00.00 lacs (Previous Year: ` 50.00 lacs)] 6,16.34 8,01.23

TOTAL 24,56.35 25,93.05

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 EXCEL InDUSTRIES LIMITED
SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET

SCHEDULE ‘E’
FIXED ASSETS (` in lacs)
GROSS BLOCK (AT COST OR VALUATION) DEPRECIATION/AMORTISATION NET BLOCK
I II III IV V VI VII VIII IX X
Sr. Description of Assets Asat Additions Deductions Asa t As at Deductions/ Provided Asa t Asa t As at
No. 1st April, during the during the 31st March, 1st April, Adjustments during the 31st March, 31st March, 31st March,
2010 year year 2011 2010 year 2011 2011 2010
I LAND – FREEHOLD 1,72.91 — — 1,72.91 — — — — 1,72.91 1,72.91
II LAND – LEASEHOLD 2,84.71 — — 2,84.71 42.50 — 4.65 * 47.15 2,37.56 2,42.21
III BUILDINGS (Refer Note No. 2 below) 22,11.96 83.11 4.19 22,90.88 6,55.43 1.15 94.86 7,49.14 15,41.74 15,56.53
IV PLANT AND MACHINERY 163,19.65 9,79.25 12,92.80 160,06.10 87,96.17 8,39.02 @ 7,80.53 ** 87,37.68 72,68.42 75,23.48
V DATA PROCESSING EQUIPMENT 8,51.94 57.28 70.52 8,38.70 6,69.55 (0.20) 40.25 7,10.00 1,28.70 1,82.39
VI ELECTRICAL INSTALLATION 4,88.35 38.01 1.46 5,24.90 3,34.31 24.31 26.23 3,36.23 1,88.67 1,54.04
VII LABORATORY EQUIPMENTS 2,30.88 16.01 35.05 2,11.84 2,17.63 34.27 @ 6.00 1,89.36 22.48 13.25
VIII FURNITURE, FIXTURES AND OFFICE EQUIPMENTS 6,54.46 15.88 53.87 6,16.47 5,11.00 49.16 @ 25.84 ** 4,87.68 1,28.79 1,43.46
IX LEASEHOLD IMPROVEMENTS 23.43 — — 23.43 3.55 — 8.52 12.07 11.36 19.88
X VEHICLES 2,63.97 43.75 33.12 2,74.60 1,77.34 29.37 @ 28.64 ** 1,76.61 97.99 86.63
XI TECHNICAL BOOKS 8.09 1.14 — 9.23 5.58 — 0.61 6.19 3.04 2.51
TOTAL 215,10.35 12,34.43 14,91.01 212,53.77 114,13.06 9,77.08 10,16.13 ** 114,52.11 98,01.66 100,97.29
PREVIOUS YEAR : 214,76.56 7,18.00 6,84.21 215,10.35 109,45.93 4,79.59 @ 9,46.61 ** 114,13.06
CAPITAL WORK-IN-PROGRESS 2,97.40 3,44.87
(Refer Note No. 3 below) TOTAL 100,99.06 104,42.16

NOTES:
1 * Amount written off in respect of Leasehold Land
2 Buildings include cost of shares in Co-operative Housing Societies ` 0.01 lac (Previous Year: ` 0.01 lac).
3 Capital Work-in-Progress includes Advance for Capital Expenditure ` 1,62.48 lacs (Previous Year: ` 11,94.24 lacs).
4 ** Includes Short Provision for Depreciation for earlier years ` 92.94 lac (Previous Year: ` 0.25 lac).
5 @ Includes Excess Provision for Depreciation for earlier years written back ` 24.60 lacs (Previous Year ` 9.85 lacs).
6 Buildings include Buildings given on operating lease:
Gross Book Value ` 1,99.70 lacs (Previous Year: ` 1,40.92 lacs)
Accumulated depreciation ` 77.36 lacs (Previous Year: ` 75.45 lacs)
Depreciation for the year ` 1.30 lacs (Previous Year: ` 1.92 lacs)
Net Block ` 1,21.04 lacs (Previous Year: ` 63.55 lacs)

SCHEDULE ‘F’
INTANGIBLE ASSETS (` in lacs)
GROSS AMOUNT AMORTISATION NET AMOUNT
SR. DESCRIPTION OF INTANGIBLE ASSETS As at Additions Deductions Foreign As at Upto Deductions/ Provided Foreign Upto As at As at
NO. 31stM arch, during the during the Exchange 31st March, 31st March, Adjustments during the Exchange 31st March, 31stM arch, 31st March,
2010 year year Adjustment 2011 2010 year Adjustment 2011 2011 2010
1 Computer Software 1,86.34 — — 1,86.34 1,00.82 — 46.59 — 1,47.41 38.93 85.52
2 Trademarks 7.00 — — — 7.00 7.00 — — — 7.00 — —
3 Export Product Registration — 54.02 — — 54.02 — — 4.50 — 4.50 49.52 —
TOTAL 1,93.34 54.02 — — 2,47.36 1,07.82 — 51.09 1,58.91 88.45 85.52
PREVIOUS YEAR 1,93.34 — — — 1,93.34 61.23 46.59 — 1,07.82

SCHEDULE ‘G’ As at 31st As at 31st

March, 2011 March, 2010
INVESTMENTS (AT COST) (` in lacs) (` in lacs) (` in lacs)
LONG-TERM
1 IN SHARES:
(a) Quoted 12,43.70 7,41.25
(b) Unquoted 2,30.85 2,30.85
14,74.55 9,72.10
2 IN ASSOCIATE COMPANIES
Unquoted 38.34 75.27

3 OTHER INVESTMENTS:
Unquoted 2,86.08 2,86.07
17,98.97 13,33.44
Less: Provision for Diminution in value of Investments 45.81 1,20.48
TOTAL 17,53.16 12,12.96

Notes:
1. Aggregate of Quoted Investments:
Cost (Net of provision for diminution) 12,06.73 6,20.77
Market Value 21,76.06 16,50.30
2. Aggregate of Unquoted Investments:
Cost (Net of provision for diminution) 5,46.43 5,92.19

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SCHEDULE ‘H’ As at 31st As at 31st

March, 2011 March, 2010
INVENTORIES (` in lacs) (` in lacs) (` in lacs)
(Lower of cost or net realisable value)
1. Stores and Spares (including Fuel) 3,64.17 2,85.91
2. Containers 1,13.10 83.28
3. Stock-in-Trade :
(a) Finished Products 16,61.21 12,83.53
(b) Semi-finished Products 3,31.09 2,36.20
(c) Traded Goods 1,21.34 1,12.68
(d) Raw Materials [Including Stock-in-Transit ` 2,59.22 lacs
(Previous Year: ` 9,00.00 lacs)] 12,63.16 13,80.11
33,76.80 30,12.52
TOTAL 38,54.07 33,81.71

SCHEDULE ‘I’ As at 31st As at 31st

March, 2011 March, 2010
SUNDRY DEBTORS (` in lacs) (` in lacs) (` in lacs)
Unsecured
(a) Debts outstanding for a period exceeding six months :
Considered Good 1,14.80 2,02.87
Considered Doubtful — —
1,14.80 2,02.87
Less: Provision for Doubtful Debts — —
1,14.80 2,02.87

(b) Other Debts

Considered Good 58,36.50 54,34.03
TOTAL 59,51.30 56,36.90

SCHEDULE ‘J’ As at 31st As at 31st

March, 2011 March, 2010
CASH AND BANK BALANCES (` in lacs) (` in lacs) (` in lacs)
1. Cash on hand — —
2. Bank Balances in India:
With Scheduled Banks:
(i) In Unclaimed Dividend Accounts 8.87 7.39
(ii) In Current Accounts(*) 1,66.49 88.75
(iii) In Fixed Deposit Accounts 73.00 73.00
(iv) In Margin Money Accounts 1,69.17 1,11.73
4,17.53 2,80.87
TOTAL 4,17.53 2,80.87
* Includes ` 0.05 lac (Previous Year ` 0.01 lac) being 50% share of interest in Joint Venture

SCHEDULE ‘K’ As at 31st As at 31st

March, 2011 March, 2010
OTHER CURRENT ASSETS (` in lacs) (` in lacs)
1. Interest Receivable 6.98 5.84
2. Export Benefits Receivable 1,65.57 1,94.27
3. Income Tax Refund receivable 91.44 85.94
4. Miscellaneous Receivables 31.24 5.18
5. Unamortised Premium on Forward Contract 4.04 7.43
TOTAL 2,99.27 2,98.66

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SCHEDULE ‘L’ As at 31st As at 31st

March, 2011 March, 2010
LOANS AND ADVANCES (` in lacs) (` in lacs) (` in lacs)
Unsecured and Considered Good unless otherwise stated
1. Advances recoverable in cash or in kind or for value to be received (*)
Considered Good 10,13.41 10,06.30
Considered Doubtful 35.00 24.50
10,48.41 10,30.80
Less: Provision for Doubtful Advances 35.00 24.50
10,13.41 10,06.30
2. Sundry Loans 2.50 31.50
3. Minimum Alternative Tax Credit Entitlement 0.31 2,62.75
4. Balance with Excise Authorities 1,72.86 2,38.83
5. Sundry Deposits 1,90.20 1,59.55
6. VAT Credit (Input) Receivable 1.65 12.28
7. Advance Taxation [Net of Provision ` 2.60 lacs (Previous Year: ` 1.60 lacs)] 0.53 0.89
8. Prepaid Expenses — 0.08
TOTAL 13,81.46 17,12.18
* Includes ` 0.30 lac (Previous Year: ` 0.30 lac) being 50% share of interest in
Partnership Firm.

SCHEDULE ‘M’ As at 31st As at 31st

March, 2011 March, 2010
CURRENT LIABILITIES (` in lacs) (` in lacs) (` in lacs)
1. Acceptances 5,46.07 3,05.94
2. Sundry Creditors 32,43.75 25,94.92
3. Other Liabilities 1,06.06 4,00.29
4. Other Payables 3,65.98 2,69.58
5. Advances from Customers 1,17.24 1,57.54
6. Overdrawn Bank Balances — 58.85
7. Investor Education and Protection Fund shall be credited by the following amounts,
as and when due:
(a) Unclaimed Dividend 8.87 7.16
(b) Unclaimed Matured Deposits 9.79 16.66
18.66 23.82
8 Sundry Deposits 1,00.00 40.16
9. Interest accrued but not due on Loans 77.55 41.54
TOTAL 45,75.31 38,92.64

SCHEDULE ‘N’ As at 31st As at 31st

March, 2011 March, 2010
PROVISIONS (` in lacs) (` in lacs)
1. Provision for Taxation [net of advance tax ` 21,33.82 lacs 4,24.84 4,97.26
(Previous Year: ` 21,69.93 lacs)]
2. Provision for Fringe Benefit Tax [net of advance tax ` 28.25 lacs 0.25 4.55
(Previous Year: ` 84.95 lacs)]
3. Proposed Dividend on Equity Shares 4,08.96 2,18.11
4. Provision for Tax on Distributed Profits 66.34 36.23
5. Provision for Gratuity (Refer Note No. 10 of Schedule ‘T’ ) 1,39.14 2,16.67
6. Provision for Retirement benefits 5,17.90 4,69.16
TOTAL 15,57.43 14,41.98

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SCHEDULE ‘O’ Current year Previous Year

(` in lacs) (` in lacs)
OTHER INCOME FROM OPERATIONS
1. Incentives on Exports 1,94.06 1,56.18
2. Sales Tax/VAT Refund 15.80 8.95
3. Diminution in the value of long-term investment written back 13.28 —
4. (Short)/Excess Accruals written back (Net) — 4.25
5. Commission Received 55.07 15.18
6. Royalty Income 2,14.99 72.50
7. Sundry Credit Balances written back (Net) 41.84 0.50
8. Profit on Sale of Assets 3.86 —
9. Miscellaneous Income 2,26.66 1,76.70

TOTAL 7,65.56 4,34.26

SCHEDULE ‘P’ Current year Previous Year

(` in lacs) (` in lacs)
OTHER INCOME
1. Income from Long-Term Investments (Gross) 1,48.66 1,44.77

2. Interest on Income Tax Refund 7.70 —

3. Interest on Loans, Deposits, etc. (Gross) 27.27 26.13

4. Rent 44.79 43.79

TOTAL 2,28.42 2,14.69

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Current year Previous Year

(` in lacs) (` in lacs) (` in lacs) (` in lacs)
SCHEDULE ‘Q’
MANUFACTURING AND OTHER EXPENSES
1. RAW MATERIALS CONSUMED :
Opening Stock 13,80.11 10,55.49
Add: Purchases 125,02.93 106,14.91
138,83.04 116,70.40
Less: Closing Stock 12,63.16 13,80.11
126,19.88 102,90.29
2. PURCHASES OF TRADED GOODS 6,19.77 5,22.07
3. CONTAINERS AND PACKING MATERIALS CONSUMED 7,68.16 6,65.16
4. PERSONNEL EXPENSES :
(a) Salaries, Wages, Bonus and Other Benefits 31,45.52 24,98.64
(b) Contribution to Provident Fund and Other Funds 2,79.73 2,58.42
(c) Provision/Payment of Gratuity
(Refer Note No. 10 of Schedule ‘T’) 1,89.23 1,85.64
(d) Provision for Other Retirement Benefits 1,15.87 1,74.92
(e) Welfare Expenses 2,08.94 1,94.05
39,39.29 33,11.67
5. OPERATING AND OTHER EXPENSES :
(a) Stores and Spares Consumed 46.02 46.53
(b) Power and Fuel 22,47.06 18,64.99
(c) Repairs to Buildings 48.59 38.75
(d) Repairs to Machinery 10,07.71 6,90.74
(e) Other Repairs 63.23 82.23
(f) Processing Charges 2,10.97 1,52.50
(g) Rent 28.75 31.38
(h) Rates and Taxes 63.17 64.24
(i) Insurance Charges 50.56 37.55
(j) Commission on Sales (other than sole selling agents) 73.00 87.97
(k) Discount on Sales 22.80 24.19
(l) Travelling and Conveyance 1,53.50 1,25.91
(m) Charity and Donations 29.71 15.23
(n) Bad Debts/Sundry Debit Balances written off 1,17.91 11,07.62
Less: Provision for doubtful debts written back — (10,15.81)
1,17.91 91.81
(o) Provision for Doubtful Debts/Advances 10.50 3.50
(p) Loss on sale of Long Term Investments — 4.81
(q) Assets written off 1,86.11 5,02.55
(r) Excise Duty Paid 34.19 29.32
(s) Exchange Difference (Net) 32.53 45.27
(t) Provision for Diminution in value of Long-term Investments — 35.15
(u) Excess/Short Provision 8.51 —
(v) Freight Outwards and Forwarding Expenses 7,26.41 5,28.49
(w) Directors’ Fees 3.30 3.20
(x) Loss on sale of Assets (Net) 9.96 0.17
(y) Other Expenses 15,91.70 15,20.97
67,66.19 60,27.45
TOTAL 247,13.29 208,16.64

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SCHEDULE ‘R’ Current year Previous Year

(` in lacs) (` in lacs) (` in lacs)
(INCREASE)/DECREASE IN STOCKS
(a) Opening Stock:
Finished Products 12,83.53 17,33.19
Semi-finished Products 2,36.20 3,61.74
Traded Goods 1,12.68 86.61

16,32.41 21,81.54
(b) Less: Closing Stock:
Finished Products 16,61.21 12,83.53
Semi-finished Products 3,31.09 2,36.20
Traded Goods 1,21.34 1,12.68

21,13.64 16,32.41

TOTAL (4,81.23) 5,49.13

SCHEDULE ‘S’
Current year Previous Year
INTEREST (` in lacs) (` in lacs)
1. On Intercorporate/Fixed Deposits 2,01.18 1,96.42
2. On Term Loan with Banks 0.91 50.07
3. On Cash Credit/Working Capital Demand Loan Accounts 3,23.17 3,99.16
4. Others 39.96 71.78

TOTAL 5,65.22 7,17.43

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SCHEDULE ‘T’
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:
1. Consolidation:
(a) The consolidated financial statements comprise of the financial statements of Excel Industries Limited
(hereinafter referred to as “the holding Company”), its subsidiary Company and associate Companies
(hereinafter referred to as “the group”). The details of subsidiary Company considered for consolidation
together with proportion of share holding held by the group is as follows :
Name of the Subsidiary Country of Incorporation % of Group Holding
Kamaljyot Investments Limited India 100%
(b) For the purpose of preparation of consolidated financial statements, the investment of the group in
its associate companies are accounted for using the Equity Method. The investments in the associate
Companies considered for consolidation together with proportion of share holding held by the group
are as under:
Name of the Associate Country of Incorporation % of Group Holding
Excel Bio Resources Limited India 49.02%
Rom Vijay Bioo Tech Private Limited India 24.00%
(c) The group has 50% ownership interest in M/s. Multichem Industries, a partnership firm registered
in India. The proportionate interest in the said entity as per the latest available Balance Sheet as at
31 March 2011 have been considered for preparation of the aforesaid consolidated financial
statements.
(d) Consolidated financial statements have been prepared in the same format as adopted by the holding
Company, to the extent possible, as required by Accounting Standard (AS) 21 ‘Consolidated Financial
Statements’ notified under the Companies (Accounting Standards) Rules, 2006.
(e) The financial statement of the subsidiary and associate Companies drawn upto the same reporting date
viz. year ended 31 March 2011 has been used for the purpose of consolidation.
(f) The consolidated financial statements of the Company and its subsidiary Company have been
consolidated on line-by-line basis by adding together the book value of like items of assets, liabilities,
income and expenses, after fully eliminating intra-group balances and intra-group transactions
resulting in unrealized profits/losses.
2. Statement of Significant Accounting Policies:
The significant accounting policies followed by the group in the consolidated financial statements are stated
hereunder. In case, the uniform policy is not followed by each Company in the group, the same, as disclosed
in the audited accounts of the said Company, has been reproduced, if material.
(a) Basis of Preparation:
The financial statements have been prepared to comply in all material respects with the Accounting
Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have been prepared under the
historical cost convention on an accrual basis except in case of assets for which revaluation is carried
out. The accounting policies have been consistently applied by the Company are consistent with those
used in the previous year.
(b) Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of the financial statements and
the results of operations during the reporting period. Although these estimates are based upon
management’s best knowledge of current events and actions, actual results could differ from
these estimates.
(c) Fixed Assets and Depreciation:
(i) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation/amortisation and provision for
impairment, if any, except for the following :
(a) Land, Buildings, Plant and Machinery and Electrical Installations situated at Roha have been
revalued as on 30 September 2001 on the basis of valuation report of Government approved
valuers at their depreciated replacement value and stated at their revalued amounts.
(b) Assets at Mumbai installed up to 31 March 2002 are stated at cost as estimated by an
approved valuer.

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SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

Cost comprises the purchase price and any attributable cost of bringing the asset to its working
condition for its intended use. Borrowing costs relating to acquisition of fixed assets which takes
substantial period of time to get ready for its intended use are also included to the extent they
relate to the period till such assets are ready to be put to use.
(ii) Depreciation and Amortisation:
(a) Leasehold Land (at cost or revalued as the case may be) is amortised over the period of
69 years and 95 years for Roha and Lote Parshuram site respectively.
(b) Other Fixed Assets:
1. In the case of following assets (which have been revalued) at Roha, depreciation
has been provided on straight line (SL) basis over the balance useful life of the
assets as estimated by the approved valuer or at the rates specified in Schedule XIV
to the Companies Act, 1956, whichever are higher.
Description of * Rates (SL Method) Schedule XIV Rates
Tangible Assets (Range) (SL Method)
Buildings 1.63% - 19.00% 1.63%
Plant & Machinery 5.28% - 47.50% 5.28%
Electrical Installations 5.28% - 31.67% 5.28%
* Depreciation Rates on SL Method for the balance useful life as estimated by the
valuer.
2. In respect of Buildings, Plant and Machinery and Electrical Installations, except
additions to the aforesaid Fixed Assets at Mumbai upto 30 September 1981, on
straight line basis in accordance with Section 205(2)(b) of the Companies Act,
1956, at the rates specified in Schedule XIV to the Companies Act, 1956.
3. In respect of all other Fixed Assets, on written down value basis in accordance with
Section 205(2)(a) of the Companies Act, 1956, at the rates specified in Schedule
XIV to the Companies Act, 1956.
4. Individual assets acquired for less than ` 5,000 are entirely depreciated in the year
of acquisition.
(d) Impairment:
(i) The carrying amounts of assets are reviewed for impairment at each balance sheet
date if there is any indication of impairment based on internal/external factors.
An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the asset’s net selling price and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money
and risks specific to the asset.
(ii) After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.
(iii) A previously recognised impairment loss is increased or reversed depending on changes in
circumstances. However the carrying value after reversal is not increased beyond the carrying
value that would have prevailed by charging usual depreciation if there was no impairment.
(e) Intangible assets and Amortisation:
(i) Intangible assets are stated at cost less accumulated amortisation.
(ii) Amortisation:
(a) Computer software is amortised on a straight line basis proportionately over a period of
four years.
(b) Trademarks are amortised on a straight line basis proportionately over a period of
five years.
(c) Product Registration expenses are amortised on a straight line basis over a period of
four years.

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SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

(f) Inventories:

(i) Raw materials, Lower of cost and net realisable value. However, materials and other
containers, stores and items held for use in the production of inventories are not written down
spares below cost if the finished products in which they will be incorporated
are expected to be sold at or above cost. Cost is determined on a
moving weighted average basis.
(ii) Finished goods and Lower of cost and net realisable value. Cost includes direct
Work-in-progress materials, labour and a proportion of manufacturing overheads
based on normal operating capacity. Cost of finished goods includes
excise duty. Cost is determined on absorption costing basis
at actuals.
(iii) Traded Goods Lower of cost and net realisable value. Cost is determined on a
moving weighted average basis.
(g) Investments:
Long-term investments are carried at cost of acquisition. However, the carrying amount is reduced to
recognise a decline, other than temporary, in the value of long-term investments by a charge to the
Profit and Loss Account.
(h) Export Benefits:
Duty free imports of raw materials under Advance License for Imports as per the Export and Import
Policy are matched with the exports made against the said licenses and the net benefit/obligation is
accounted by making suitable adjustments in raw material consumption.
The benefit accrued under the Duty Entitlement Pass Book Scheme as per the Export and Import Policy
in respect of exports made under the said Scheme is included under the head “Other Income from
Operation” as ‘Incentives on Exports’.
(i) Retirement Benefits:
(i) Retirement benefits in the form of Provident Fund is a defined contribution scheme and the
contributions are charged to the Profit and Loss Account of the year when the contribution to the
fund is due. There are no obligations other than the contribution payable to the Provident Fund
Trust.
(ii) Retirement benefits in the form of Superannuation Fund is a defined contribution scheme
and the contribution is charged to the Profit and Loss account of the year when the contribution
accrues. There are no obligations other than the contribution payable to the Superannuation
Fund Trust. The scheme is funded with insurance Company in the form of a qualifying
insurance policies.
(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an
actuarial valuation on projected unit credit method made at the end of each financial year.
The scheme is funded with insurance Company in the form of qualifying insurance
policies.
(iv) Short term compensated absences are provided for based on estimates. Long term compensated
absences are provided for based on actuarial valuation. The actuarial valuation is done as
per projected unit credit method.
(v) Actuarial gains/losses are recognised immediately to the profit and loss account and are not
deferred.
(vi) Payments made under the Voluntary Retirement Scheme are charged to the Profit and Loss
account immediately.
(j) Foreign Currency Translations:
Foreign Currency Transactions:
(i) Initial Recognition:
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at
the date of the transaction.

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SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

(ii) Conversion:
Foreign currency monetary items are reported using the closing exchange rate on the Balance
Sheet date. Non-monetary items which are carried in terms of historical cost denominated
in a foreign currency are reported using the exchange rate at the date of the transaction;
and non-monetary items which are carried at fair value or other similar valuation denominated
in a foreign currency are reported using the exchange rates that existed when the values
were determined.
(iii) Exchange Differences:
Exchange differences arising on the settlement of monetary items or on reporting monetary
items of Company at rates different from those at which they were initially recorded during the
year, or reported in previous financial statements, are recognised as income or as expenses in
the year in which they arise.
(iv) Forward Exchange Contracts:
The premium or discount arising at the inception of forward exchange contracts is amortised
as expense or income over the life of the contract. Exchange differences on such contracts are
recognised in the statement of profit and loss in the year in which the exchange rates change.
Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised
as income or as expense for the year.
(k) Research and Development Costs:
Research costs (other than cost of Fixed Assets acquired) are charged as an expense in the year
in which they are incurred and are reflected under the appropriate heads of accounts. Development
expenditure incurred on an individual project is carried forward when its future recoverability can
reasonably be regarded as assured. Any expenditure carried forward is amortised over the period of
expected future sales from the related project, not exceeding ten years.
The carrying value of development costs is reviewed for impairment annually when the asset is not yet
in use, and otherwise when events or changes in circumstances indicate that the carrying value may
not be recoverable.
(l) Leases:
(a) Where the Company is the lessee:
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of
the leased term, are classified as operating leases. Operating lease payments are recognized as
an expense in the Profit and Loss account on a straight-line basis over the lease term.
(b) Where the Company is the lessor:
Assets subject to operating leases are included in fixed assets. Lease income is recognised
in the Profit and Loss Account on a straight-line basis over the lease term. Costs, including
depreciation are recognised as an expenses in the Profit and Loss Account. Initial direct
costs such as legal costs, brokerage costs, etc. are recognised immediately in the Profit and
Loss Account.
(m) Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized
as part of the respective asset. All other borrowing costs are expensed in the period they occur.
Interest and other costs incurred for acquisition and construction of qualifying assets, upto the date of
commissioning/installation, are capitalised as part of the cost of the said assets.
(n) Government Grants:
Government Capital Grants of the nature of promoters’ contribution are credited to Capital Reserve and
treated as part of Shareholders’ Funds.
(o) Accounting for Turnkey Projects:
Income in respect of Turnkey Projects is accounted on the completion of the said projects.
(p) Revenue recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.

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SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

Sale of Goods
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed
to the buyer. Gross turnover includes Excise Duty but does not include Sales Tax and VAT.
Income from Services
Revenues from service contracts are recognised pro-rata over the period of the contract as and when
services are rendered and are net of service tax.
Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the
rate applicable.
Dividend
Revenue is recognised when the shareholders’ right to receive payment is established by the balance
sheet date.
Royalties
Revenue is recognised on an accrual basis in accordance with the terms of the relevant agreement.
Other Income
Certain items of income such as insurance claims, commission income, overdue interest from
customers etc. are considered to the extent the amount is ascertainable/accepted by the parties.

(q) Cash and Cash equivalents:

Cash and cash equivalents in the Cash flow statement comprise cash at bank and in hand and
short-term investments with an original maturity of three months or less.

(r) Provisions and contingent liabilities:

A provision is recognised when an enterprise has a present obligation as a result of past event; it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed when the Company has a possible obligation and it is not
probable that an outflow of resources embodying economic benefits will be required to settle
the obligation.

(s) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable
to equity shareholders (after deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

(t) Segment Reporting Policies:

Identification of segments
The Company’s operating businesses are organized and managed separately according to the nature
of products and services provided, with each segment representing a strategic business unit that offers
different products and serves different markets. The analysis of geographical segments is based on the
areas in which major operating divisions of the Company operate.
Inter Segment Transfers
The company generally accounts for inter segment sales and transfers as if the sales or transfers were
to third parties at current market prices.
Unallocated items
Includes general corporate income and expense items which are not allocated to any business
segment.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

Segment Policies
The Company prepares its segment information in conformity with the accounting policies adopted for
preparing and presenting the financial statements of the Company as a whole. Common allocable costs
are allocated to cash segment according to the relative contribution of each segment.
(u) Taxation:
Tax expense comprises of current and deferred tax. Current income tax measured at the
amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961
enacted in India. Deferred income taxes reflects the impact of current year timing differences
between taxable income and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred
tax assets are recognised only to the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realised. In situations
where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are
recognised only if there is virtual certainty supported by convincing evidence that they can be realised
against future taxable profits.
At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises
unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain,
as the case may be that sufficient future taxable income will be available against which such deferred
tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company
writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realised. Any such write-down is reversed to the extent that
it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available.
Wealth Tax is provided in accordance with the provisions of the Wealth Tax Act, 1957.
MAT credit is recognised as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year
in which the Minimum Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendations contained in guidance Note issued by the Institute
of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss
account and shown as MAT Credit Entitlement. The Company reviews the same at each balance
sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is
no longer convincing evidence to the effect that Company will pay normal Income Tax during the
specified period.
As at 31st As at 31st
March, 2011 March, 2010
(` in lacs) (` in lacs)
3. Contingent Liabilities:
(a) Bills discounted — 67.25
(b) Disputed income-tax liability 9,09.74 6,67.42
(c) Disputed excise duty liability 1,79.52 1,42.69
(d) Disputed sales-tax liability 34.09 5.14
(e) Disputed service tax liability 2.49 14.57
(f) Guarantees given by Company's Bankers on behalf of the Company to third parties 36.20 55.16
(g) (i) Claims against the holding Company not acknowledged as debts 13.46 23.96
(ii) Liability in respect of claim made by workers and contract labourers Amount not Amount not
ascertainable ascertainable

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

As at 31st As at 31st
March, 2011 March, 2010
(` in lacs) (` in lacs)
4. Estimated amount of contracts remaining to be executed on capital account and not provided for 2,29.50 3,05.81
(net of advances)

5. The Company has executed a Deed of Conveyance on 6 May 2011 in respect of its plot of land
at Jogeshwari for which the Company had entered into an agreement on 27 December 2005 to
develop the said plot of land. Pursuant to the said conveyance deed, the Company has secured
41% of the constructed area in return for the transfer of 59% of its rights in the said land. The profit
arising on the said transaction will be accounted in the year 2011-12 in which the transaction
is completed.

6. Joint Venture Company

The Group has 33.33% interest in jointly controlled entity Wexsam Limited-Hong Kong. Since there were
no activities in the said jointly controlled entity for the past three years, the financials are not available.
Accordingly, the proportionate interest of the Group in the said jointly controlled entity has not been
considered in the Consolidated Financial Statements.

7. (a) Research and Development costs, as certified by the Management, debited to the Profit and Loss
Account are as under:
(a) Revenue expenses debited to Research and Development Expenses Account and other heads of
accounts 2,07.59 1,97.37
(b) Depreciation on Research and Development Equipment 44.76 41.35

2,52.35 2,38.72

8. Managerial Remuneration to Chairman & Managing Director, Executive Vice-Chairperson and Executive
Director of the Holding Company:
To Chairman & Managing Director, Executive Vice-Chairperson and Executive Director:
(i) Salaries 59.04 53.14

(ii) Contribution to Provident and Other Funds 15.94 14.05

(iii) Perquisites and other allowances 53.17 16.47

(iv) Commission 78.75 —

2,06.90 83.66
Note:
As the liabilities for gratuity and leave encashment are provided on an actuarial basis for the Company as a
whole, the amounts pertaining to the directors are not included above.
9. Consolidated Earning Per Share:
(1) Profit after tax: 14,62.94 7,14.36
(Less): Prior Period Adjustments (Net): (1,05.25) 1,89.53
Add/(Less): Excess/(Short) provision for taxation for the earlier years: 16.07 (1,36.27)
Add: Share of Profits in associate companies 24.70 0.59
Profit attributable to Equity Shareholders (A) 13,98.46 7,68.21
Nos. Nos.
(2) Weighted average number of Equity Share Outstanding (B) 1,09,05,630 1,09,05,630
` `
(3) Earning per Share (Basic and Diluted) (A)/(B) 12.82 7.04
(4) Nominal Value of Equity Share 5.00 5.00

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

10. Details of Employee Benefits – Gratuity:

(I) Defined Benefit Plans
The Group has a defined benefit gratuity plan. Every employee who has completed five years or more of
service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service.
If an employee completes more than 25 years of service then instead of 15 days, he/she will get
gratuity on retirement at 22 days last drawn salary. The aforesaid liability is provided for on the basis
of an actuarial valuation made at the end of the financial year. The scheme is funded with insurance
Companies in the form of qualifying insurance policies.
(a) The amounts recognised in the statement of Profit and Loss Account are as follows:
(i) Defined Benefit Plan Current Year Previous Year
Gratuity Gratuity
(` in lacs) (` in lacs)
Current Service cost 87.07 79.11
Interest cost on benefit obligation 1,24.70 1,07.10
Expected return on plan assets (1,24.40) (97.52)
Net actuarial (gain)/loss recognised during the year 1,01.86 96.95
Amount included under the head personnel expenses in Schedule ‘Q’ Manufacturing
and Other Expenses 1,89.23 1,85.64
Actual return on plan assets 1,19.11 89.96

(b) The amounts recognised in the Balance Sheet are as follows: As at 31st As at 31st
March, 2011 March, 2010
Defined Benefit DefinedB enefit
Plan-Gratuity Plan-Gratuity
(Funded) (Funded)
(` in lacs) (` in lacs)
Present value of funded obligation 17,26.61 15,11.46
Less: Fair value of plan assets 15,87.47 12,94.79
Net Liability included under the head Provision for Gratuity, in Schedule ‘N’ – Provisions 1,39.14 2,16.67

(c) Changes in the present value of the defined benefit obligation: As at 31st As at 31st
March, 2011 March, 2010
Gratuity Gratuity
(` in lacs) (` in lacs)
Opening defined benefit obligation 15,11.45 12,98.21
Interest cost 1,24.70 1,07.10
Current service cost 87.07 79.11
Benefits paid (91.80) (62.71)
Actuarial (gains)/loss on obligation 95.18 89.74
Closing defined benefit obligation 17,26.60 15,11.45

(d) Changes in the fair value of plan assets are as follows: As at 31st As at 31st
March, 2011 March, 2010
Gratuity Gratuity
(` in lacs) (` in lacs)
Opening fair value of plan assets 12,94.79 9,62.65
Expected return 1,24.40 97.52
Contributions made by employer during the year 2,66.76 3,04.54
Benefits paid (91.81) (62.71)
Actuarial gains/(loss) (6.68) (7.21)
Closing fair value of plan assets 15,87.46 12,94.79

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

As at 31st As at 31st
March, 2011 March, 2010
Gratuity Gratuity
(` in lacs) (` in lacs)
(e) Expected contribution to defined benefit plan for the year 2010-11 1,50.00 2,25.00
(f) The major categories of plan assets as a percentage of fair value of total plan assets are
as follows: Current Year Previous Year
Insurer Managed Funds (Life Insurance Corporation of India) 85.28% 83.55%
Insurer Managed Funds (Aviva Life Insurance Company India Limited) 14.72% 16.45%
100.00% 100.00%
The overall expected rate of return on assets is determined based on the market prices
prevailing on that date, applicable to the period over which the obligation is to be settled.
There has been significant change in the expected rate of return on assets due to the
improved stock market scenario.
(g) The principal actuarial assumptions at the Balance Sheet date Current Year Previous Year
Gratuity Gratuity
Discount rate 8.25% 8.25%
Expected rate of return on plan assets 9% 9%
Expected rate of salary increase 5% 5%
Mortality table LIC(1994- 96) LIC (1994-96)
Ultimate Ultimate
Proportion of employees opting for early retirement 5% to 1% 5% to 1%

Notes
1. The estimates of future salary increases, considered in actuarial valuation, takes
account of inflation, seniority, promotion and other relevant factors such as supply
and demand in the employment market.
2. Amounts for the current and previous four periods are as follows:
[AS15 Para 120(n)] [1]
Gratuity
2011 2010 2009 2008 2007
Defined benefit obligation 17,26.60 * * * *
Plan assets 15,87.47 * * * *
Surplus/(deficit) (1,39.14) * * * *
Experience adjustments on plan liabilities 2,03.59 * * * *
Experience adjustments on plan assets 6.68 * * * *

* The disclosure required under Para 120(n)(ii) of Accounting Standard 15

“Employee Benefits (Revised, 2003)” pertaining to experience adjustments on
plan assets and plan liabilities is not given for previous four years on the ground
that such information is not available with the Company.
(II) Defined Contribution Plans
(i) Provident Fund is a defined contribution scheme established under a State Plan.
(ii) Superannuation Fund is a defined contribution scheme. The scheme is funded with an
insurance Company in the form of a qualifying insurance policy.
(iii) Defined Contribution Plan Current Year Previous Year
(` in lacs) (` in lacs)
Current service cost included under the head Personnel Expenses in Schedule ‘Q’
Manufacturing and Other Expenses:
Provident Fund 1,40.57 1,25.29
Family Pension Fund 62.62 63.71
Superannuation Fund 70.41 65.24

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

11. Segment Information

1. Information About Primary Business Current Year Previous Year
Segments: (` in lacs) (` in lacs)
Particulars Chemicals Environment Total Chemicals Environment Total
REVENUE:
External Revenue 263,90.79 12,14.49 276,05.28 231,64.76 8,27.03 239,91.79
Un-allocated Revenue: 2,34.54 1,96.07
Total Revenue 278,39.82 241,87.86
RESULT:
Segment result 34,23.61 2,70.57 36,94.18 28,23.31 1,26.41 29,49.72
Un-allocated expenditure net of un-allocated
income 11,65.95 9,31.14
Interest Expenses 5,65.22 7,17.43
Profit/(Loss) before taxation but after prior
period adjustments 19,63.01 13,01.15
Provision for Taxation:
Current 7,04.30 1,27.00
In respect of earlier year (16.07) 1,36.27
Minimum Alternative Tax Entitlement (0.31) (1,78.75)
Deferred (98.67) 4,49.01
Profit/(Loss) after taxation 13,73.76 7,67.62
OTHER INFORMATION:
Segment Assets 197,60.28 8,74.74 206,35.02 193,68.41 9,34.05 203,02.46
Un-allocated Assets 32,09.29 27,48.50
Total Assets 238,44.31 230,50.96
Segment Liabilities (42,40.21) (2,57.35) (44,97.56) (33,72.35) (1,63.60) (35,35.95)
Un-allocated Liabilities (81,86.60) (92,78.03)
Total Liabilities (126,84.16) (128,13.98)
Segment Capital expenditure 11,00.35 13.41 11,13.76 6,76.34 15.29 6,91.63
Un-allocated Capital expenditure 1,74.69 26.37
Segment Depreciation and Amortisation 7,99.82 81.19 8,81.01 8,51.70 45.12 8,96.82
Un-allocated Depreciation and Amortisation 93.27 96.22
Segment Non-cash expenses other than
Depreciation and Amortisation 2,82.65 31.87 3,14.52 5,88.08 4.38 5,92.46
Un-allocated Non-cash expenses other than
Depreciation and Amortisation — 5.45
2. Information About Secondary Business
Segments:
Domestic Exports Total Domestic Exports Total
Revenue: 216,16.73 62,23.09 278,39.82 187,10.63 54,77.23 241,87.86
Carrying amount of Assets: 227,28.07 11,16.24 238,44.31 222,03.39 8,47.57 230,50.96
Capital Expenditure: 12,34.43 54.02 12,88.45 7,18.00 — 7,18.00
3. Notes:
1. The Group is orgainised into two business segments namely:
(a) Chemicals – Comprising of Industrial and Specialty Chemicals and Pesticides Intermediates
(b) Environment – Comprising of Soil enricher, Bio-pesticides and other Bio-products.
2. Segment revenue in the above segments includes sales, export incentives, processing charges
and other income from operations.
3. Segment revenue in the geographical segments considered for disclosure are as follows:
(a) Revenue within India includes sales to customers located within India.
(b) Revenue outside India includes sales to customers located outside India.
4. Segment revenue, results, assets and liabilities include the respective amounts identifiable to
each of segments and amounts allocated on a reasonable basis.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

12. Related Party disclosures as required by Accounting Standard (AS) -18

‘’Related Party Disclosures”, notified by Companies (Accounting Standards) Rules, 2006 (as amended) are given below:
(a) Relationships:
1. Associate Companies:
RomVijay Bioo Tech Private Limited
Excel Bio Resources Limited
2. Joint Venture Company:
Wexsam Limited, Hong Kong
Multichem Industries
3. Enterprises over which Key Management Personnel and their relatives have significant influence:
Agrocel Industries Limited
Anshul Specialty Molecules Limited
C. C. Shroff Research Institute
C. C. Shroff Self Help Centre
Dipkanti Investments & Financing Private Limited
Excel Crop Care Limited
Excel Industries – Europe NV
Good Rasayan Limited
Hyderabad Chemical Supplies Limited
Hyderabad Chemical Products Limited
Mumukshu Finance & Services Private Limited
Parul Chemicals Limited
Pritami Investments Private Limited
Shrodip Investments Private Limited
Shrujan
Transpek Industry Limited
Transpek-Silox Industry Limited
Transpek Industry (Europe) Limited
TML Industries Limited
Utkarsh Chemicals Private Limited
Samarth Gram Vikas Trust
4. Key Management Personnel and their Relatives:
(a) Key Management Personnel:
Shri Ashwin C. Shroff (Chairman and Managing Director)
Smt. Usha A. Shroff (Executive Vice Chairperson)
Shri Dipesh K. Shroff (Director)
Shri Atul G. Shroff (Director)
Shri Ravi Ashwin Shroff (Son of Shri Ashwin C. Shroff)
Shri S. R. Potdar (Executive Director)
(b) Relatives:
Shri Kantisen C. Shroff (Father of Shri Dipesh K. Shroff)
Smt. Shruti Atul Shroff (Wife of Shri Atul G. Shroff)
Kum. Vishwa Atul Shroff (Daughter of Shri Atul G. Shroff)
Smt. Chanda Kantisen Shroff (Mother of Shri Dipesh K. Shroff)
Smt. Preeti Dipesh Shroff (Wife of Shri Dipesh K. Shroff)
Shri Hrishit Ashwin Shroff (Son of Shri Ashwin C. Shroff)
Smt. Chetna Praful Saraiya (Sister of Shri Atul G. Shroff)
Shri Praful Manilal Saraiya (Brother in law of Shri Atul G. Shroff)
Smt. Hiral Tushar Dayal (Sister of Shri Atul G. Shroff)
Shri Tushar Charandas Dayal (Brother in law of Shri Atul G. Shroff)
Smt. Anshul Amrish Bhatia (Daughter of Shri Ashwin C. Shroff)
Shri Dilip G. Bhatia (Brother in law of Shri Ashwin C. Shroff)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

(b) The following transactions were carried out with the related parties in the course of business:
(` in lacs)
Sr. Nature of Transactions O ther Key Mgmt. Relatives of Total
No. Enterprises Personnel Key Mgmt.
Personnel
(1) INCOME
(a) Sale of Goods (Net of Excise Duty)
Excel Crop Care Limited 26,32.07 — — 26,32.07
(24,54.57) (—) (—) (24,54.57)
Others 3,51.87 — — 3,51.87
(3,33.54) (—) (—) (3,33.54)
Total 29,83.94 — — 29,83.94
(27,88.11) (—) (—) (27,88.11)
(b) Rent Received
Excel Crop Care Limited 38.40 — — 38.40
(38.40) (—) (—) (38.40)
(c) Processing Charges
Excel Crop Care Limited 11,59.01 — — 11,59.01
(10,65.22) (—) (—) (10,65.22)
Transpek Industry Limited 3.18 — — 3.18
(45.81) (—) (—) (45.81)
Total 11,62.19 — — 11,62.19
(11,11.03) (—) (—) (11,11.03)
(d) Royalty
Excel Crop Care Limited 1,02.83 — — 1,02.83
(72.50) (—) (—) (72.50)
Total 1,02.83 — — 1,02.83
(72.50) (—) (—) (72.50)
(e) Dividend Received
TML Industries Limited 13.81 — — 13.81
(13.81) (—) (—) (13.81)
Transpek -Silox Industry Limited 1,12.08 — — 1,12.08
(1,04.61) (—) (—) (1,04.61)
Others 6.51 — — 6.51
(5.17) (—) (—) (5.17)
Total 1,32.40 — — 1,32.40
(1,23.59) (—) (—) (1,23.59)
(f) Reimbursement of expense/salary incurred on behalf of
Excel Crop Care Limited — — — —
(26.68) (—) (—) (26.68)
Total — — — —
(26.68) (—) (—) (26.68)
(g) Interest Received
Agrocel Industries Limited 1.83 — — 1.83
(1.87) (—) (—) (1.87)
Total 1.83 — — 1.83
(1.87) (—) (—) (1.87)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

(` in lacs)
Sr. Nature of Transactions O ther Key Mgmt. Relatives of Total
No. Enterprises Personnel Key Mgmt.
Personnel
(2) EXPENSES
(a) Purchase of Goods
Excel Crop Care Limited — — — —
(1,99.56) (—) (—) (1,99.56)
Transpek Industry Limited — — — —
(28.05) (—) (—) (28.05)
Anshul Specialty Molecules Limited 4.34 — — 4.34
(—) (—) (—) (—)
Agrocel Industries Limited 1,54.71 — — 1,54.71
(0.46) (—) (—) (0.46)
Others 0.95 — — 0.95
(7.76) (—) (—) (7.76)
Total 1,60.00 — — 1,60.00
(2,35.83) (—) (—) (2,35.83)
(b) Processing Charges
Good Rasayan Limited 48.77 — — 48.77
(39.64) (—) (—) (39.64)
Total 48.77 — — 48.77
(39.64) (—) (—) (39.64)
(c) Remuneration
Shri Ashwin C Shroff — 75.61 — 75.61
(—) (24.26) (—) (24.26)
Smt Usha A Shroff — 70.71 — 70.71
(—) (24.24) (—) (24.24)
Shri S R Potdar — 60.59 — 60.59
(—) (35.16) (—) (35.16)
Total — 2,06.91 — 2,06.91
(—) (83.66) — (83.66)
(d) Directors’ Sitting Fees
Dipesh K. Shroff — 0.65 — 0.65
(—) (0.45) (—) (0.45)
Atul G. Shroff — 0.20 — 0.20
(—) (0.10) (—) (0.10)
Total — 0.85 — 0.85
(—) (0.55) (—) (0.55)
(e) Charity & Donation
Shroff Foundation Trust 4.00 — — 4.00
(—) (—) (—) (—)
Rashtriya Seva Trust 1.50 — — 1.50
(—) (—) (—) (—)
Shri Seetha Rama Seva Sadan 1.00 — — 1.00
(—) (—) (—) (—)
Total 6.50 — — 6.50
(—) (—) (—) (—)
(f) Retirement Benefits
Shri K. C. Shroff — — 8.42 8.42
(—) (—) (3.60) (3.60)
Total — — 8.42 8.42
(—) (—) (3.60) (3.60)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

(` in lacs)
Sr. Nature of Transactions O ther Key Mgmt. Relatives of Total
No. Enterprises Personnel Key Mgmt.
Personnel
(g) Reimbursement of expense/salary incurred on behalf of
Transpek Industry (Europe) Limited 82.10 — — 82.10
( 27.39) (—) (—) (27.39)
Total 82.10 — — 82.10
( 27.39) (—) (—) (27.39)
(h) Rent Paid
Excel Crop Care Limited 21.86 — — 21.86
(20.04) (—) (—) (20.04)
Total 21.86 — — 21.86
(20.04) (—) (—) (20.04)
(3) FINANCE/OTHERS
(a) Loans/Advance given
Transpek Industry (Europe) Limited 81.80 — — 81.80
(34.65) (—) (—) (34.65)
Total 81.80 — — 81.80
(34.65) (—) (—) (34.65)
(b) Dividend Paid
Ashwin C Shroff — 1.66 — 1.66
(—) (0.42) (—) (0.42)
Atul G Shroff — 1.20 — 1.20
(—) (0.30) (—) (0.30)
Kantisen C Shroff — — 1.14 1.14
(—) (—) (0.27) (0.27)
Ravi A Shroff — 0.95 — 0.95
(—) (0.24) (—) (0.24)
Dilip G Bhatia — — 2.08 2.08
(—) (—) (0.52) (0.52)
Anshul Specialty Molecules Ltd 37.80 — — 37.80
(9.45) (—) (—) (9.45)
Utkarsh Chemicals Private Limited 23.67 — — 23.67
(5.55) (—) (—) (5.55)
Others 13.12 0.36 3.22 16.70
(3.28) (0.09) (0.81) (4.18)
Total 74.59 4.17 6.44 85.20
(18.28) (1.05) (1.60) (20.93)
(c) Sale of Fixed Assets
Excel Crop Care Limited — — — —
(1.12) (—) (—) (1.12)
Total — — — —
(1.12) (—) (—) (1.12)
(d) Loan Returned
Agrocel Industries Limited 17.00 — — 17.00
(—) (—) (—) (—)
Total 17.00 — — 17.00
(—) (—) (—) (—)

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 EXCEL INDUSTRIES LIMITED
SCHEDULE FORMING PART OF THE CONSOLIDATED BALANCE SHEET AND
THE CONSOLIDATED PROFIT AND LOSS ACCOUNT

SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

(` in lacs)
Sr. Nature of Transactions O ther Key Mgmt. Relatives of Total
No. Enterprises Personnel Key Mgmt.
Personnel
(4) OUTSTANDING AS AT BALANCE SHEET DATE
(a) Amounts Receivable/Recoverable in kind
Excel Crop Care Limited 9,83.02 — — 9,83.02
(11,91.33) (—) (—) (11,91.33)
Others 60.04 — — 60.04
(48.71) (—) (—) (48.71)
Total 10,43.07 — — 10,43.07
(12,40.04) (—) (—) (12,40.04)
(b) Advance/Loans Recoverable
Transpek Industry (Europe) Limited 4.25 — — 4.25
(7.26) (—) (—) (7.26)
Total 4.25 — — 4.25
(7.26) (—) (—) (7.26)
(c) Amount Payable (Net)
Anshul Specialty Molecules Limited 4.89 — — 4.89
(—) (—) (—) (—)
Good Rasayan Limited 7.85 — — 7.85
(18.67) (—) (—) (18.67)
Transpek Industry Limited — — — —
(13.48) (—) (—) (13.48)
Others — — — —
(4.10) (—) (—) (4.10)
Total 12.74 — — 12.74
(36.25) (—) (—) (36.25)
(Figures in brackets relate to the Previous Year)

13. Foreign exchange derivatives and exposures outstanding as at the Balance Sheet date:
Asa t Asa t Asat Asat
31stMa rch, 31st March, 31stM arch, 31stM arch,
Nature of Instrument Currency 2011 2011 2010 2010
Foreign Foreign
Currency Currency
Value Value
(` in lacs) (` in lacs) (` in lacs) (` in lacs)
(a) Forward contract – Buy for Hedging Purpose
(i) Loans USD 4,20.90 9.41 7,70.71 16.64
(ii) Interest/Other Expenses USD — — 2.92 0.06
(b) Un-hedged Foreign Currency Exposure on:
(i) Import Creditors GBP 81.40 1.13 11.26 0.17
USD 4,69.73 9.26 3,68.52 8.16
(ii) Export Debtors EUR 41.41 0.66 92.09 1.52
USD 9,77.39 21.86 7,26.20 16.09
GBP 31.24 0.43 5.18 0.08
(iii) Loans taken USD 4,20.90 9.41 — —
(iv) Loans given GBP — — 7.26 0.10
(v) Bank Balances USD 16.68 0.38 16.84 0.37

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 EXCEL INDUSTRIES LIMITED
SCHEDULE FORMING PART OF THE CONSOLIDATED BALANCE SHEET AND
THE CONSOLIDATED PROFIT AND LOSS ACCOUNT

SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

14. Break up of Deferred Tax Assets and Deferred Tax Liabilities:

(a) Deferred Tax Assets Asa t Asat
31st March, 31stM arch,
2011 2010
(` in lacs) (` in lacs)

(i) Liabilities Allowable on Payment basis 1,97.68 2,35.18

(ii) Provision for Doubtful Debts/Advances 11.36 8.33

(iii) Unabsorbed Capital Loss 35.13 36.80

2,44.17 2,80.31

(b) Deferred Tax Liabilities

(i) Depreciation 16,13.78 17,48.62

16,13.78 17,48.62

DEFERRED TAX LIABILITY (NET) 13,69.61 14,68.31

The Company has recognised deferred tax asset since
the management believes that the reversal of the timing
difference on account of depreciation would result in sufficient
future taxable income against which the said deferred tax asset
can be realised. Further, unabsorbed capital loss has been
recognised since the Company is in process of completing
the transfer of capital assets which will result in capital gains.
(Also refer Note No. 5 above)

15. The Company has availed of the exemption granted by notification dated 8 February 2011 issued by the Ministry of Corporate Affairs (MCA) under
Section 212 of the Companies Act, 1956. The information relating to subsidiary company in terms of said notification is as follows:
(` in lacs)

Sr. Name of the Company Reporting Exchange Capital Reserves Total Total Investment other Turnover Profit Provision Profit Proposed
No. Currency Rate Assets Liabilities than investment Before for Taxation After Dividend
in Subsidiary Taxation Taxation
Company

1 Kamaljyot Investments INR 1.00 1,99.98 77.91 5,98.82 3,20.93 5,90.79 14.40 57.38 0.97 56.41 —
Limited
(1.00) (1,99.98) (21.50) (4,77.29) (2,55.81) (4,18.78) (11.03) (-0.72) (0.98) (-1.70) (—)

(Figures in brackets relate to the previous year)

Notes:
1. Details of investment of Subsidiary company:
` in lacs
In equity shares (Quoted) 5,41.03
In equity shares (Unquoted) 49.76

Total 5,90.79

2. Turnover includes dividend received from long-term investments.

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 EXCEL INDUSTRIES LIMITED

SCHEDULE ‘T’ — (Contd.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

16. Operating Leases:

Office premises and godowns are obtained on operating leases for various tenors. Except for the Office premises, none of the operating leases
are renewable.

2010-2011 2009-2010
(` in lacs) (` in lacs)

(i) Lease payments for the year 28.06 30.36

(ii) Sub-lease payments received during the year Nil Nil
(iii) Minimum lease payments as at 31 March
(a) Not later than one year 26.72 25.34
(b) Later than one year but not later than five years 42.61 68.50
(c) Later than five years Nil Nil
The company has leased out its office premises on operating leases for various tenors. There is no escalation clause
in the lease agreements/arrangements. There are no restrictions imposed by lease agreements/arrangements.
There are no uncollectible minimum lease payments receivable at the Balance Sheet date. (Previous Year: Nil)
Future Minimum Lease payments
(a) Not later than one year 38.40 38.40
(b) Later than one year but not later than five years 1,31.20 54.40
(c) Later than five years Nil Nil

17. Excise duty on sales amounting to ` 18,42.23 lacs (Previous Year: ` 13,22.76 lacs) has been reduced from sales in Profit & Loss Account and excise duty
on increase/(decrease) in stocks amounting to ` 34.19 lacs (Previous Year: ` 29.32 lacs) has been considered as expense in Schedule ‘Q’.

18. Previous year’s figures have been regrouped/rearranged where ever necessary to conform to this year’s classification.

For S. R. BATLIBOI & CO. For and on behalf of the Board of Directors of
Firm Registration No. 301003E Excel Industries Limited
Chartered Accountants

per VIJAY MANIAR A. C. SHROFF U. A. SHROFF

Partner Chairman & Managing Director Executive Vice Chairperson
Membership No. 36738
KAILAS DABHOLKAR S. K. SINGHVI
Vice President-Finance and Taxation Company Secretary

Place : Mumbai, Place : Mumbai,

Date : 20 May 2011 Date : 20 May 2011

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 EXCEL INDUSTRIES LIMITED
STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956, RELATING TO SUBSIDIARY COMPANY

1. Name of the subsidiary company Kamaljyot Investments Limited

2. The financial year of the subsidiary company ended on 31st March, 2011

3. Date from which it became subsidiary 30th July, 1984

4. Shares of the subsidiary company held by Excel Industries Limited at the

end of the financial year of the subsidiary company:

(a) Number and face value 1,99,982 equity shares of ` 100/- each

(b) Extent of holding 100%

5. Net aggregate profits/losses of the subsidiary company,

so far as it concerns the members of Excel Industries Limited —
(a) not dealt with in the accounts of Excel Industries Limited
for the year ended 31st March, 2011, amounted to:
(i) for the subsidiary company’s financial year ended
as in (2) above ` 56,41,122

(ii) for previous financial years of the subsidiary company ` (-) 28,51,766

(b) dealt with in the accounts of Excel Industries Limited

for the year ended 31st March, 2011, amounted to:

(i) for the subsidiary company’s financial year ended

as in (2) above NIL

(ii) for previous financial years of the subsidiary company NIL

6. Changes in the interest of Excel Industries Limited in the subsidiary company
between the end of financial year of the subsidiary company
and 31st March, 2011 NOT APPLICABLE
7. Material changes between the end of the financial year of
the subsidiary company and 31st March, 2011
(a) fixed assets
(b) investments
(c) monies lent by the subsidiary company
(d) monies borrowed by the subsidiary company for any purpose other than that of
meeting current liabilities
} NOT APPLICABLE

A. C. SHROFF U. A. SHROFF
Chairman & Managing Director Executive Vice Chairperson

KAILAS DABHOLKAR S. K. SINGHVI

Place : Mumbai,
Date : 20 May 2011 Vice President – Finance and Taxation Company Secretary

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 Notes

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 EXCEL INDUSTRIES LIMITED
Registered Office:
184-87, SWAMI VIVEKANAND ROAD, JOGESHWARI (W), Mumbai-400 102.

PROXY FORM

DP. ID* Registered Folio No.

Client ID*

I/We............................................................................................................................................................................................................................................
of................................................................................................................................................................................................................................................
...................................................................................................................................... being a member/members of the abovenamed Company hereby appoint
................................................................................................................ of ...............................................................................................................................
...................................................................................................................or failing him/her .....................................................................................................
of................................................................................................................................................................................................................................................
as my/our proxy to vote for me/us on my/our behalf at the 50TH ANNUAL GENERAL MEETING of the Company to be held on Friday, the 22nd July, 2011,
and at any adjournment thereof.

Signed this ........................................................................................day of ...................................................................................................................... 2011.

Affix
Signature .................................................................................................... Revenue .........................................................................................
Stamp

* Applicable for investors holding shares in electronic form.

N.B.: This proxy must be deposited at the Registered Office of the Company at 184-87, Swami Vivekanand Road, Jogeshwari (W), Mumbai-400 102,
not less than 48 hours before the time of the meeting.


EXCEL INDUSTRIES LIMITED



Registered Office:
184-87, SWAMI VIVEKANAND ROAD, JOGESHWARI (W), Mumbai-400 102.

ATTENDANCE SLIP

50 Annual General Meeting on Friday, 22nd July, 2011

TH

DP. ID* Registered Folio No.

Client ID*

Mr./Mrs./Miss .............................................................................................................................................................................................................................
I certify that I am a registered shareholder/proxy for the registered shareholder of the Company.
I hereby record my presence at the 50TH ANNUAL GENERAL MEETING of the Company held at Rama Watumull Auditorium, Kishinchand Chellaram College,
Dinshaw Wacha Road, Churchgate, Mumbai–400 020 on Friday, the 22nd July, 2011 at 3.00 p.m.

......................................................................................... .........................................................................................
Member’s/Proxy’s name in BLOCK letters Member’s/Proxy’s Signature

* Applicable for investors holding shares in electronic form.

Note: Please fill in this attendance slip and hand it over at the ENTRANCE OF THE HALL.

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