Twenty-Ninth Annual Report 2012-13 - India Glycols Limited...4 | 29th Annual Report 2012-13 India...

India Glycols Limited

Twenty-NinthAnnual Report

2012-13

Forward-looking statement

Across the pages

• Corporateinformation 1

• Notice 2

• Directors’report 14

• Managementdiscussionandanalysis 23

• ReportonCorporateGovernance 29

• Auditor’sreport 36

• BalanceSheet 40

• ProfitandLossAccount 41

• CashFlowStatement 42

• NotestotheAccounts 43

• StatementpursuantofSection212 68

• ConsolidatedAuditor’sreport 69

• ConsolidatedBalanceSheet 70

• ConsolidatedProfitandLossAccount 71

• ConsolidatedCashFlowStatement 72

• NotestoConsolidatedFinancialStatement 74

In thisAnnualReportwehavedisclosed forward-looking information toenable investors tocomprehendourprospectsand takeinformedinvestmentdecisions.Thisreportandotherstatements-writtenandoral-thatweperiodicallymakecontainforward-lookingstatementsthatsetoutanticipatedresultsbasedonthemanagement’splansandassumptions.Wehavetriedwhereverpossibletoidentifysuchstatementsbyusingwordssuchas‘anticipate’,‘estimate’,‘expects’,‘projects’,‘intends’,‘plans’,‘believes’,andwordsofsimilarsubstanceinconnectionwithanydiscussionoffuturepeformance.

Wecannotguaranteethattheseforwardlookingstatementswillberealised,althoughwebelievewehavebeenprudentinassumptions.Theachievementofresultsissubjecttorisks,uncertaintiesandeveninaccurateassumptions.Shouldknownorunknownrisksoruncertaintiesmaterialise,orshouldunderlyingassumptionsproveinaccurate,actualresultscouldvarymateriallyfromthoseanticipated,estimatedorprojected.Readersshouldbearthisinmind.

Weundertakenoobligationtopubliclyupdateanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorothrwise.


29th Annual Report 2012-13 | 1

BoardofDirectorsU.S.Bhartia Chairman&ManagingDirector

JayshreeBhartia Director

PradipKumarKhaitan Director

JitenderBalakrishnan Director

RaviJhunjhunwala Director

JagmohanN.Kejriwal Director

AutarKrishna Director

R.C.Misra Director

M.K.Rao ExecutiveDirector

AuditCommitteeR.C.Misra Chairman

JagmohanN.Kejriwal

AutarKrishna

Investors’GrievanceCommitteeR.C.Misra Chairman

U.S.Bhartia

AutarKrishna

JagmohanN.Kejriwal

ChiefExecutiveOfficerRakeshBhartia

CompanySecretaryLalitKumarSharma

AuditorsLodha&Co.,CharteredAccountants

BankersStateBankofIndia

StateBankofPatiala

AxisBankLimited

PunjabNationalBank

UnionBankofIndia

IDBIBankLtd.

EximBank

StateBankofHyderabad

StateBankofTravancore

StateBankofBikanerandJaipur

RegisteredOfficeA-1,IndustrialArea,

BazpurRoad,Kashipur-244713

Distt.UdhamSinghNagar,

Uttarakhand

CorporateOffice3A,ShakespeareSarani,

Kolkata-700071

HeadOfficePlotNo.2B,Sector-126,NOIDA-201304

Dist.GautamBudhNagar,

UttarPradesh

Registrars&TransferAgentsMCSLtd.

F-65,OkhlaIndustrialAreaPhase-I

NewDelhi-110020

CorporateInformation

2 | 29th Annual Report 2012-13


Notice

NOTICE is hereby given that the Twenty Ninth AnnualGeneralMeetingofthemembersofIndiaGlycolsLimitedwillbeheldonWednesdaythe18thSeptember,2013at12.30PMattheRegisteredOfficeoftheCompanyatA-1,Industrial Area,BazpurRoad,Kashipur,DistrictUdhamSingh Nagar, Uttarakhand to transact the followingbusiness:

ORDINARY BUSINESS

1. Toreceive,considerandadopttheauditedBalanceSheet as at 31st March, 2013 and Profit and LossAccountfortheyearendedonthatdate,theReportsofDirectorsandAuditorsthereon.

2. Toconfirmtheinterimdividendpaidduringtheyearanddeclarefinaldividendonequityshares.

3. ToappointaDirectorinplaceofShriM.K.Rao,whoretiresbyrotationandbeingeligible,offershimselfforreappointment.

4. To appoint a Director in place of Smt. JayshreeBhartia, who retires by rotation and being eligible,offersherselfforreappointment.

5. To appoint a Director in place of Shri JagmohanNKejriwal,whoretiresbyrotationandbeingeligible,offershimselfforreappointment.

6. ToappointStatutoryAuditorstoholdofficeuptotheconclusionof thenextAnnualGeneralMeetingandtofixtheirremuneration.

SPECIAL BUSINESS:

7.Toconsiderandif,thoughtfittopass,withorwithoutmodification(s), the following resolution as anORDINARY RESOLUTION:

“RESOLVEDTHATsubjecttoprovisionsofSections198, 269, 309, Schedule XIII and other applicableprovisions, if any, of the Companies Act, 1956(includinganymodification(s)orre-enactmentthereof,forthetimebeinginforce)andsubjecttotheapprovaloftheCentralGovernment,ifrequired,ShriM.K.RaobeandisherebyreappointedasExecutiveDirectoroftheCompanyforaperiodof5yearsw.e.f.1stApril,2013ontheremuneration,perquisites,benefitsandamenitiesasmentionedbelow:

Remuneration:a) BasicSalary -`2,70,000/-permonth

b) SpecialAllowance - ` 1,26,095/-permonth

c) Perquisites: Inadditiontothesalary, theExecutiveDirector

shallbeentitledtothefollowingperquisiteswhichshall be evaluated as per Income Tax Rules,whereverapplicable,intheabsenceofanysuchrule,perquisiteshallbeevaluatedatactualcost;

i) Unfurnishedresidentialaccommodation;

ii) Electricity,waterasperCompany’srules;

iii) Furnishingofresidenceuptoanamountnotexceeding` 2,00,000/-p.a.

iv) Companymaintainedcarwithdriverwillbeprovidedforofficialandpersonaluse;

v) Medical and Personal Accident InsuranceasperCompany’srules;

vi) Leave encashment as per Company’srules;

vii) Maintenance expense for personal carfor personal purpose for an amount notexceeding` 2,00,000/-p.a.

viii) Actual expenses reimbursement forTelephoneprovidedatresidence;

ix) Medical reimbursement equivalent to onemonthsalaryforselfandfamily;

x) Leavetravelconcessiononceinayearforanamountnotexceeding`36,000/-p.a.forselfandfamilytoanyplaceinIndiabyAir/Rail/Road;

xi) Ex-gratia at the rate 15%p.a of the basicsalary;

xii) ContributiontoProvidentFundasperRulesoftheCompany;and

xiii) GratuityasperRulesoftheCompany.

Providedfurtherthattheaggregateofremunerationby way of salary, perquisites and allowances etc.payable to ShriM. K. Rao shall not exceed 5% ofthe Net Profits of the Company in a financial yearcomputed in the manner laid down under Section309 (5)of theCompaniesAct,1956andwithin theoverall limitsprescribedunderSection198and309readwithScheduleXIIIoftheAct.”

“FURTHER RESOLVED THAT the Board ofDirectors of the Company on the recommendationof the Remuneration Committee be authorized to



annually review the salary, commission, perquisitesand allowances etc. payable to Shri M. K. Rao andauthorized to restructure the remuneration payablewithin theoverall limit of5%of theNetProfitsof theCompanyinafinancialyearcomputedinthemannerlaiddownunderSection309(5)oftheCompaniesAct,1956andwithintheoveralllimitprescribedunderSection198and309readwithScheduleXIIIoftheAct.”

“FURTHER RESOLVED THAT notwithstanding totheaboveintheeventofanylossorinadequacyofprofitinanyfinancialyearoftheCompanyduringthetenureofShriM.K.RaoasExecutiveDirectoroftheCompany, the aforesaid remuneration shall be theminimumremunerationpayabletohimorasmaybeapprovedbythe,CentralGovernment,ifrequired.”

“FURTHERRESOLVEDTHAT thedraftagreementfor reappointment (a copy thereof duly initialed bythe Chairman for the purpose of identification wasplacedonthetableatthemeeting)beandisherebyapproved.”

“FURTHERRESOLVEDTHATShriRakeshBhartia,Chief Executive Officer, Shri Anand Singhal, ChiefFinancial Officer and Shri Lalit Kumar Sharma,Company Secretary be and are hereby severallyauthorisedtoexecuteAgreementwithShriM.K.RaoforandonbehalfoftheCompanyforreappointmentasExecutiveDirector.”

8. Toconsiderandif,thoughtfittopass,withorwithoutmodification(s),thefollowingresolutionasaSPECIAL RESOLUTION:

“RESOLVEDTHATinaccordancewiththeprovisionscontained in the Memorandum and Articles ofAssociation of the Company and pursuant to theprovisionsofSection81(1A),andallotherapplicableprovisions,ifany,oftheCompaniesAct,1956(“theAct”)and theprovisionscontained in theSecuritiesandExchangeBoardofIndia(EmployeeStockOptionScheme and Employee Stock Purchase Scheme)Guidelines,1999(“TheSEBIGuidelines”)(includinganystatutorymodification(s)or re-enactmentof theActortheGuidelines,forthetimebeinginforce)andsubject to such other approvals, permissions andsanctionsasmaybenecessaryandsubjecttosuchconditionsandmodificationsasmaybeprescribedorimposedwhilegrantingsuchapprovals,permissions

andsanctionswhichmaybeagreedtobytheBoardofDirectorsoftheCompany(hereinafterreferredtoas“theBoard”whichtermshallbedeemedtoincludeanyCommittee including the Compensation Committeewhich theBoardmay, at its discretion authorize toexercise certain or all of its powers, including thepowers, conferredby thisResolution), consent andapprovalofthemembersoftheCompanybeandisherebyaccordedtotheBoard,togrant,offer,issue,and allot, under a plan titled, Employees StockOptionPlan2013(ESOP2013orPlan),suchnumberof options as may be decided by the Board, eachoption convertible into 1 (one) fully paid-up equityshareof theCompanyof` 10/- (RupeesTenonly)each,whichcouldgiverisetotheissueofupto5%ofthepaidupcapitaloftheCompanybeing15,48,075Equitysharesof` 10/-(RupeesTenonly)eachtothepresentandfutureemployee(s)includingDirector(s)in the whole-time employment of the Company orotherwiseselectedon thebasisof criteriaprovidedintheplan(“EligibleEmployees”)exceptapromoteror a person who belongs to the Promoter Group,both these expressions being defined in the SEBIGuidelines,atanytimetoortothebenefitofEligibleEmployees as defined under the plan, in one ormore tranches and on such terms and conditions as maybefixedordeterminedbytheBoardoradulyconstituted Committee of the Board in accordancewiththeprovisionsofthelaworguidelinesissuedbytherelevantauthority.”

“RESOLVED FURTHER THAT the consent of theshareholdersoftheCompanybeandisherebygrantedto plan, and the Board, be is hereby authorised todoallactsasitmayinitsabsolutediscretiondeemnecessary to give effect to the plan including incurexpensesinrelationtothesame.”

“RESOLVED FURTHER THAT all the new equityshares to be issued andallotted as aforesaid shallrank pari-passu including dividend inter-sewith thethen existing equity shares of the Company in allrespects.”

“RESOLVED FURTHER THAT in case of anycorporate action(s) such as rights issues, bonusissues, merger, demerger, amalgamation, sale ofdivisionandanyotherformofcorporaterestructuring,



ifany,additionalsharesareissuedbytheCompanyfortheemployeesforthepurposesofmakingafairand reasonable adjustment to the options grantedearlier,theaboveceilingof15,48,075Equitysharesof` 10/-(RupeesTenonly)eachshallbedeemedtobeincreasedtotheextentofsuchadditionalequitysharesissued.”

“RESOLVED FURTHER THAT in case the equityshares of the Company are either sub-divided orconsolidated, then the number of shares and priceofacquisitionpayableby theoptiongranteesunderthe plan shall automatically stand augmented or reduced,asthecasemaybe,inthesameproportionasthepresentfacevalueof`10/-(RupeesTenonly)perequitysharesbearstotherevisedfacevalueoftheequity sharesof theCompanyafter such sub-divisionorconsolidation,withoutaffectinganyotherrightsorobligationsofthesaidallottees”.

“RESOLVED FURTHER THAT the Board be andis hereby authorized on behalf of the Company toevolve,decideuponandbringintoeffectthePlanonsuchtermsandconditionsascontainedintherelevantExplanatoryStatement to thisnoticeandmakeanymodification(s), change(s), variation(s), alteration(s)orrevision(s),inthesaidPlanfromtimetotimeinitssolediscretioninconformitywiththeprovisionsoftheAct,theMemorandumandArticlesofAssociationoftheCompanyandanyotherapplicablelaws,includingbutnotlimitedto/amendmentswithrespecttovestingperiod, vesting schedule, exercise price, re-pricingof the options granted, exercise period, eligibilitycriteriaor tosuspend,withdraw,terminateorrevisethePlan from time to timeand todoall suchacts,deeds,matters,andthingsas itmay in itsabsolutediscretiondeemfitornecessaryordesirableforsuchpurpose.”

“RESOLVED FURTHER THAT the Board be andis hereby authorized to take necessary steps forlistingoftheSecuritiesallottedunderthePlanontheStockexchangesaspertheprovisionsoftheListingAgreement with the Stock Exchanges concerned,theSEBIGuidelinesandotherapplicable lawsandregulations.”

“RESOLVED FURTHER THAT for the purpose ofgivingeffecttotheabove,theBoardbeandishereby

authorized todoallsuchacts,deeds,mattersandthings as may be necessary or expedient and tosettle anyquestions, difficulties or doubts thatmayariseinthisregard.”

“RESOLVEDFURTHERTHATsubject to theSEBIGuidelines,theBoardinitsabsolutediscretionmayfromtimetotimeamend,alterorterminatethePlanor anygrant prior to theexerciseor the termsandconditions thereof, provided that no amendment,alterationorterminationinanyoptionbemade,whichwouldimpairorprejudicetherightsoftheemployeescoveredunderthePlan.”

“RESOLVED FURTHER THAT the Board be andis hereby authorised to delegate all or any powersconferred herein, to any committee , including theCompensation Committee, with power to furtherdelegatetoanyexecutive(s)/officer(s)oftheCompanyto do all such acts, deeds, matters and things asalsotoexecutesuchdocuments,writingsetc.atanystage including at the time of listing of securities,withoutbeingrequiredtoseekanyfurtherconsentorapprovalofthemembersorotherwisetotheendandintent that all suchacts, deeds,mattersand thingsdoneandexecutedbytheBoardinrelationthegrantorvestingoftheoptionsasdescribedabove,beandareherebyratifiedbytheCompany.”

“RESOLVED FURTHER THAT all acts and deedsdone by the Board till date to further the objectiveof this resolution be and are hereby ratified andapproved.”

9. Toconsiderandif,thoughtfittopass,withorwithoutmodification(s),thefollowingresolutionasa SPECIAL RESOLUTION:

“RESOLVED THAT inaccordancewiththeprovisionsofSection81(1A)andotherapplicableprovisions,ifany,oftheCompaniesAct,1956asalsoofanyotherapplicable laws, rules, regulations, (including anyamendment theretoor re-enactment thereof for thetimebeinginforce)andsubjecttoallotherapplicableRules,RegulationsandGuidelinesoftheSecuritiesandExchangeBoardofIndia(“SEBI”),theapplicableprovisions of Foreign Exchange Management Act,1999 (“FEMA”), Foreign Exchange Management(TransferorissueofSecuritybyaPersonResidentOutside India) Regulation, 2000, Issue of Foreign



Currency Convertible Bonds and Ordinary Shares(ThroughDepositaryReceiptMechanism),Scheme,1993and inaccordancewith the rules, regulations,guidelines, policies, notifications, circulars &clarifications issued / to be issued thereon by theGovernmentofIndia(“GOI”),ReserveBankofIndia(“RBI”), Securities and Exchange Board of India(“SEBI”), the Department of Industrial Policy andPromotion,MinistryofCommerce(“DIPP”),theForeignInvestmentPromotionBoard(“FIPB”),theMinistryofFinance (Department of EconomicAffairs) and / orany other Regulatory / Statutory Authorities and/orother Authorities / Institutions / Bodies (hereinaftersinglyorcollectively referred toas the “AppropriateAuthorities”)andinaccordancewiththeprovisionsintheMemorandumandArticlesofAssociationof theCompany and the Listing Agreements entered intoby the Company with the Stock Exchanges wherethe shares of the Company are listed and subjectto such approvals, consents, permissions andsanctions of the Appropriate Authorities concernedand subject to such conditions and modifications,asmaybeprescribedbyanyofthemwhilegrantingsuchapprovals,consents,permissionsandsanctionswhichmaybeagreedtobytheBoardofDirectorsoftheCompany(“Board”)(whichtermshallbedeemedtoincludeanyCommitteewhichtheBoardmayhaveconstitutedorhereinafterconstituteforexercisingthepowersconferredontheBoardbythisresolution),theCompanybeandisherebyauthorizedtoissue,offerandallot(includingwithprovisionsforreservationonfirmand/orcompetitivebasis,ofsuchpartofissueandforsuchcategoriesofpersonsasmaybepermitted),inthecourseofoneormoredomesticorinternationaloffering(s) with or without Green Shoe option,includingbywayofaqualifiedinstitutionalplacementunder Chapter XIII A of the SEBI (Disclosureand Investor Protection) Guidelines, 2000 (“SEBIGuidelines”),toeligibleinvestors(whetherornotsuchinvestorsaremembersoftheCompany,orwhetherornotsuchinvestorsareIndianorforeign,includingqualifiedinstitutionalbuyerssuchaspublicfinancialinstitutions, scheduled commercial banks, mutualfunds,foreigninstitutionalinvestors,multilateralandbilateral development financial institutions, venturecapitalfunds,foreignventurecapitalinvestors,state

industrial development corporations, insurancecompanies, pension funds and provident funds),whetherbywayofapublicofferingorbywayofaprivateplacementandwhetherbywayofcirculationof an offering circular or placement document orotherwise, securities including Equity Shares and/or instruments or securities convertible into equityshares of theCompany such asGlobalDepositoryReceiptsand/orAmericanDepositoryReceiptsand/or convertible preference shares and/or convertibledebenturesorbonds(compulsorilyand/oroptionally,fully and / or partly), and/or non-convertibledebentures with warrants and/or securities with orwithoutdetachable /non-detachablewarrantsand /orwarrantswitha rightexercisableby thewarrant-holdertosubscribeforequitysharesand/orForeignCurrency Convertible Bonds (FCCBs) convertibleintoequity sharesat theoptionof theCompanyortheholder(s)thereof,up to an aggregate principal amount of `250,00,00,000 (Rupees Two Hundred fifty Crores)oritsequivalentinanyothercurrency,(hereinafter referred to as “Securities”) to bedenominatedinforeigncurrencyorIndianrupees,asthecasemaybe,which,attheoptionoftheCompanyortheholdersoftheSecuritiesmaybesurrenderedfor the purpose of cancellation against receipt ofcorrespondingnumberofunderlyingequitysharesoftheCompany,as thecasemaybe,andsuch issueandallotmenttobemadeinoneormoretrancheortranchesatsuchprice(premium/discount)asmaybedetermined in accordance with relevant guidelines,on such terms and conditions as may be decidedanddeemedappropriatebytheBoardatthetimeofissueorallotment,consideringtheprevailingmarketconditionsandotherrelevantfactors.”

“RESOLVEDFURTHERTHATwithout prejudice tothegeneralityoftheaboveandsubjecttoallapplicablelaws,theaforesaid issueofSecuritiesmayhavealloranytermsorcombinationoftermsasareprovidedin issue of securities of such nature internationallyincludingtermsrelatingtosurrenderoftheSecuritiesforthepurposesofcancellationagainstreceiptofthecorrespondingnumberofunderlyingequitysharesandtheCompanybeandisherebyauthorizedtoenterintoand execute all such arrangements/agreements asthecasemaybewithanyleadmanagers,managers,



underwriters, advisors, guarantors, depositories,custodiansandallsuchagenciesasmaybeinvolvedor concerned in suchofferingsofSecuritiesand toremunerate all such agencies including the payment ofcommissions,brokerage,feesorthelike,andalsotoseekthelistingofsuchSecuritiesinoneormorestockexchangesoutsideIndiaandthelistingofequitySharesunderlyingtheSecuritiesinoneormorestockexchangesinIndia.”

“RESOLVEDFURTHERTHATintheeventofissueofSecuritiesbywayofGlobalDepositoryReceiptsand / or American Depository Receipts or FCCB,the relevant date on the basis of which price ofthe resultant Equity shares shall be determined asspecified under applicable laws or regulations oftheAppropriateAuthorities,shallbe thedateof themeeting in which the Board or the Committee ofDirectors duly authorized by the Board decides toopentheproposedissueofsuchSecurities.”

“RESOLVED FURTHER THAT in the event ofissueofSecuritiesbywayofaqualifiedinstitutionalplacement:

(i) the relevant date on the basis of which priceof the resultant shares shall be determinedasspecified under applicable law, shall be thedate of themeeting inwhich theBoard or thecommittee of directors duly authorized by theBoard decides to open the proposed issue ofSecurities;

(ii) theallotmentofSecurities shall be completedwithin12monthsfromthedateofthisresolutionapprovingtheproposedissueorsuchothertimeasmaybeallowedbytheSEBIGuidelinesfromtimetotime;and

(iii) theSecuritiesshallnotbeeligibletobesoldforaperiodofoneyearfromthedateofallotment,except on a recognized stock exchange, orexceptasmaybepermittedfromtimetotimebytheSEBIGuidelines.”

“RESOLVED FURTHER THAT, such of SharewarrantsorFCCBsasarenotsubscribed, maybedisposedoff by theBoard in itsabsolutediscretioninsuchamanner,astheBoardmaydeemfitandaspermissiblebylaw.”

“RESOLVEDFURTHERTHATtheBoardbeand is

herebyauthorisedtofinaliseandapprovetheofferingcircular / placement document for the proposedissueoftheSecuritiesandtoauthoriseanydirectoror directorsof theCompanyor anyotherofficerorofficersoftheCompanytosigntheabovedocumentsforandonbehalfof theCompanytogetherwiththeauthority to amend, vary or modify the same assuch authorised persons may consider necessary,desirableorexpedientandforthepurposeaforesaidto give such declarations, affidavits, certificates,consents and/or authorities as may, in the opinionofsuchauthorisedperson,berequiredfromtimetotime,andtoarrangeforthesubmissionoftheofferingcircular/placementdocument,andanyamendmentsandsupplements thereto,withanyapplicablestockexchanges(whetherinIndiaorabroad),governmentand regulatoryauthorities, institutionsorbodies,asmayberequired.”

“RESOLVED FURTHER THAT the Securities issuedinforeignmarketsshallbetreatedtohavebeenissuedabroadand/orintheinternationalmarketand/orattheplaceofissueoftheSecuritiesintheinternationalmarketandmaybegovernedbyapplicableforeignlaws.”

“RESOLVEDFURTHERTHATtheBoardbeand isherebyauthorisedtoissueandallotsuchnumberofequitysharesasmayberequired tobe issuedandallottedfortheissueoftheSecuritiesreferredaboveorasmaybenecessaryinaccordancewiththetermsoftheoffering,allsuchequitysharesbeingparipassu withthethenexistingequitysharesoftheCompanyinallrespects.”

“RESOLVED FURTHER THAT the Board be andis hereby authorised to do such acts, deeds andthingsastheBoardinitsabsolutediscretiondeemsnecessaryordesirableinconnectionwiththeissueoftheSecuritiesandtogiveeffecttotheseresolutions,including,withoutlimitation,thefollowing:

(i) sign,executeandissuealldocumentsnecessaryin connection with the issue of the Securities,includinglistingapplicationstostockexchanges(whether in India or abroad) and variousagreements,undertakings,deeds,declarations;

(ii) seeking,ifrequired,theconsentoftheCompany’slenders, parties with whom the Company hasentered into various commercial and otheragreements, all concerned government andregulatory authorities in India or outside India,andanyotherconsentsthatmayberequiredin



connectionwith the issue and allotment of theSecurities;

(iii) giving or authorising the giving, by concernedpersons, of such declarations, affidavits,certificates,consentsandauthoritiesasmayberequiredfromtimetotime;and

(iv) settlinganyquestions,difficultiesordoubtsthatmay arise in regard to any such issue or allotment ofSecuritiesasitmayinitsabsolutediscretiondeemfit.and

(v) enter into and execute arrangements /agreementswithLeadManagers/Underwriters/ Guarantors / Depository (ies) / Custodians /Payment&CollectionAgents/Advisors/Banks/ Trustees and all such agencies as may beinvolved or concerned and to remunerate allsuchLeadManagers,Underwriters,andallotherAdvisorsandAgenciesbywayof commission,brokerage,fees,expensesincurredinrelationtotheissueofEquitySharesorFCCBsandotherexpenses,ifanyorthelike.”

“RESOLVEDFURTHERTHATtheBoardbeand isherebyauthorizedtodelegatealloranyofthepowersherein conferred to any Committee of Directorsor Directors or any other officer or officers of theCompanytogiveeffecttotheseresolutions.”

ByorderoftheBoard

Place :NOIDA,U.P. Lalit Kumar Sharma Date :30thMay,2013 Company Secretary

NOTES:

1. Amemberentitledtoattendandvoteatthemeetingisentitled toappointoneormoreproxies toattendandvote insteadofhimself/herself.TheproxyneednotbeamemberoftheCompany.Proxies,inordertobeeffective,mustbereceivedbytheCompanynotlessthan48hoursbeforethemeeting.

2. TheRegisterofMembersandShareTransferbooksoftheCompanywillremainclosedfrom09.09.2013to18.09.2013(bothdaysinclusive).Thenamesoftheshareholders,whosesharetransferrequestreceivedinorder,eitherattheHeadoffice/RegisteredofficeoftheCompanyorattheRegistrars&ShareTransferAgents, M/s. MCS Limited, F-65, Okhla IndustrialArea Phase-I, New Delhi 110020, before the bookclosure,shallbeincludedinthemembersregisteras

onthedateoftheAnnualGeneralMeeting.

3. TheBoardofDirectorsoftheCompanyatitsmeetingheld on 6th March, 2013 had declared an interimdividendof` 4.00perEquitySharehavingfacevalueof ` 10/- each. The interim dividend was paid on18thMarch,2013.ThesaidinterimdividendistobeconfirmedattheensuingAGM.

4. If the final dividend of ` 2/- per equity share, asrecommended by the Directors, is declared at themeeting,thepaymentofsuchdividendwillbemadeto those members of the Company whose nameappearsontheRegisterofMembersoftheCompanyas on the date of the Annual General Meeting. Inrespectofsharesheldinelectronicform,thedividendwillbepayableonthebasisofbeneficialownershipas per details furnished by National SecuritiesDepository Limited (NSDL) and Central DepositoryServices(India)Limited(CDSL)forthispurpose.

5. Postal Ballot: Ordinary Resolution under Section293(1)(a) of the Companies Act, 1956 has beenapprovedbytheshareholdersthroughPostalBallot.Inthisconnectionpostalballotnoticedated06.02.2013alongwith Postal ballot formwasmailed to all theshareholdersthroughpostoremailavailablewiththeCompanyandasperthemandateoftherespectiveshareholders. The result of the Postal Ballot wasdeclaredon05.04.2013.

6. In order to provide protection against fraudulentencashment of Dividend warrant(s), shareholdersholding shares in physical form are requested tointimatetheCompanyunderthesignatureofthesole/firstjointholder,thefollowinginformationbeprintedonthedividendwarrant(s).

i) Name of the sole/first joint holder and FolioNumber.

ii)ParticularsofBankAccountviz.,NameofBank,Branch address with pin code, Bank AccountNumber with Account type whether saving orcurrentaccount.

7. Members holding shares in Electronic form maykindly note that their bank details as furnished bythe respective depositories to theCompanywill beprinted on their dividend warrant(s), and that theCompanywill not entertain any direct request fromsuch member for deletion of/change in such bankdetails.Furtherinstructions,ifany,alreadygivenbythem in respectofsharesheld inphysical formwillnot beautomatically applicable to dividendpaid on



sharesinelectronicform.Membersmay,therefore,giveinstructionsregardingbankaccountinwhichtheywish to receivedividend,directly to theirdepositoryparticipants.

8. TheCompany provides the facility of remittance ofdividendthroughElectronicClearingServices(ECS)totheShareholdersresidinginthefollowingcities:

Agra, Ahmedabad, Amritsar, Bangalore,Bhubaneswar, Bhopal, Chandigarh, Chennai,Coimbatore, Delhi, Guwahati, Hyderabad, Indore,Jaipur,Kanpur,Kochi,Kolhapur,Kolkata,Lucknow,Ludhiana, Madurai, Mangalore, Mumbai, Nagpur,Patna,Panaji,Pune,Rajkot,Surat,Vadodara,VidishaandThiruvananthapuram.

Shareholders holding shares in physical form andwish to avail of the ECS facilitymay authorise theCompanywiththeirECSmandateintheprescribedform, available at our Head Office at Plot No. 2BSector126,Noida-201304,DisttGautamBudhNagar,Uttar Pradesh or at Registrar and Share TransferAgentM/s.MCSLimited,F-65,OkhlaIndustrialAreaPhase-I,NewDelhi110020.

9. PursuanttotheprovisionsofSection205A(5)oftheCompaniesAct,1956,dividendforthefinancialyearended 31st March, 2006, which remain unclaimed/unpaid for a period of 7 years from the date suchdividend first become due for payment, will betransferredon16thSeptember,2013totheInvestorsEducation and Protection Fund established bythe Central Government. It has been noticed thatsomeshareholdershavenotencashedthedividendwarrant(s)sofarforfinancialyearended31stMarch,2006 or any subsequent financial years. Suchshareholders are requested to make their claim tothe Company in respect of their unclaimed/unpaiddividend, before being transferred to InvestorsEducation and Protection Fund as aforesaid. TheShareholdersarerequestedtonotethatnoclaimshalllieagainsttheCompanyinrespectofsaidunclaimedand unpaid dividend, if transferred to the InvestorsEducationandProtectionFundonduedates.

10. MEMBERS ARE REQUESTED TO:

A Immediately notify any change of address to theirdepository participants (DPs) in respect of theirholding in Electronic Form and to the Company inrespectoftheirholdinginphysicalform.

B Sendtheirqueries,ifany,atleast15daysinadvanceofthemeetingattheCompany’sHeadOfficeatPlotNo. 2-B, Sector 126, Distt Gautam Budh Nagar,Noida-201304,UttarPradeshsothattheinformationcanbemadeavailableatthemeeting.

C FilltheattendanceslipforattendingthemeetingandthosewhoholdthesharesindematerialisedformarerequestedtobringtheirClientIDandDPIDnumbersforeasyidentificationofattendanceatthemeeting.

D Send their shares for dematerialisation to theCompany’s Registrars and Share Transfer Agents,ifsofar,arenotheldindematerialisedform,astheCompany comes under compulsory demat as perdirectiveissuedbytheSEBI.

E The Ministry of Corporate Affairs (‘Ministry’) hastakena“GreenInitiativeinCorporateGovernance”byallowingpaperlesscompliancesbycompaniesthrough electronicmode. In accordance with thecirculars bearing no. 17/2011 dated 21.04.2011and 18/2011 dated 29.04.2011 issued by theMinistry,companiescannowsendvariousnotices/documents (including Annual Report and othercommunications) to their shareholders throughelectronic mode to the registered e-mail addresses oftheshareholders.

We, therefore inviteyou tocontribute to thecause.In case you wish to receive the Company’s futureCommunicationsinemailID,pleaseupdatethesamewithyourDepositoryParticipant(s).

You are requested to send an e-mail [email protected] and admin@mcsdel.comorsendaletteratthefollowingaddressregisteringyouremailwiththeCompany:

MCS Limited or India Glycols Limited F-65,IstFloor, PlotNo2B,Sector126, OkhlaIndustrialArea, Noida Phase-I, Dist.GautamBudh NewDelhi-110020 Nagar-201304(UP)

11. Explanatory statement pursuant to section 173(2)oftheCompaniesAct,1956withrespecttoitemsofSpecialBusinessisappendedhereto,andformspartofthisNotice.

12. Shri Jagmohan N Kejriwal, Smt. Jayshree Bhartia andShriM.K.Rao,DirectorsduetoretirebyrotationandareeligibleforreappointmentatthisAnnualGeneralMeeting.BriefresumesofthesaidDirectorsareasunder:



Name Shri Jagmohan N Kejriwal Smt. Jayshree Bhartia Shri M.K. RaoAge 74 56 56Qualifications B.Com.andB.Sc.(Eco.) B.A. B.Tech.(ChemicalEngineering)

and M.Tech.(Chemical PlantDesign)

ExpertiseinSpecificfunctionalArea

Mr. Jagmohan N. Kejriwal isanindustrialist,whoisalsothefounderpromoterofDynatron(P) Ltd. With over 45 years’experience in managingbusiness enterprises, Mr.Kejriwal has been associatedwith India Glycols Ltd since 2002 as an Independent Director.

Mrs. Jayshree Bhartia is acompassionate businesswoman and an avid socialworker.She isacommunityperson with sharp businessacumen. Mrs. JayshreeBhartia belongs to thePromoters group and hasbeen actively associatedwith India Glycols Limited since1999.

Mr. M.K. Rao is having anoverallexperienceofmorethan28 years of Plant operations,maintenance and projectsexecution. He joined theCompany in the year 1988as Dy. Manager (TechnicalServices) and rose to thelevelofSr.VicePresidentandPlant Head in the year 2005.Mr. Rao was first appointedas Executive Director in theYear 2008 and is involved inthe day to day management of the Manufacturing Plant atKashipur.He is also responsible forvarious on-going projects withregard toconception,planningand execution thereof andhasbeenguidingtheactivitiesall through. Mr. Rao hasled the team of processingengineers in developingengineering packages forvarious debottlenecking/plant expansions, processimprovementschemesandcosteffective energy conservationschemes.

Dateofappointmenton the Board of theCompany

28.05.1999 28.05.1999 01.05.2008

Name(s)of theothercompanies in which Directorshipsheld(asperSections275and278oftheCompaniesAct,1956)

1.IndiaGlycolsLtd. 1.IndiaGlycolsLtd.2.KashipurHoldingsLtd.3.IGLFinanceLtd.

1.IndiaGlycolsLimited

Name(s)ofCompaniesin which Committeem em b e r s h i p ( s ) /Chairmanship(s) held(asperClause49oftheListing Agreement with theStockExchanges)

India Glycols Ltd.MemberAuditCommitteeInvestorsGrievanceCommitteeShareTransferCommittee

India Glycols Ltd.MemberShareTransferCommittee

None



ITEM NO. 7TheBoardofDirectorsatitsmeetingheldon6thFebruary,2013 on the recommendation of the RemunerationCommitteeoftheBoardofDirectors,hasrecommendedthe reappointment and remuneration of Shri M.K. Rao,Executive Director for another term not exceeding 5years w.e.f. 1st April, 2013 subject to the approval ofShareholders, asmentioned in the resolution set out atitemno.7oftheNotice.

INFORMATION REQUIRED PURSUANT TO THE PROVISIONS OF SCHEDULE XIII TO THE COMPANIES ACT, 1956 READ WITH CLAUSE 49 OF THE LISTING AGREEMENT IS FURNISHED AS UNDER:

I. GENERAL INFORMATION:

(i) Nature of Industry

IndiaGlycolsLimitedisengagedinthemanufacturingand marketing of Chemicals including specialtyChemicals, Ethyl Alcohol (Potable), Nutraceuticalandherbalextraction,NaturalGum&itsderivatives,IndustrialGases,etc.havingaturnoverofmorethan` 3500crores.TheCompanyhastheadvantageofproducingChemicalsthroughagroroute(greenroute)while the other manufacturers are manufacturingthroughPetroleum.

(ii) Date or expected date of commencement of commercial production

1stJanuary,1990.

(iii) In case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus.

NotApplicable

(iv) Financial Performance based on given indicators Therelevantfinancialfigures(Audited)forthelast5

yearsareasunder:-

(Amount in crores)

Particulars 2008-09

2009-10

2010-11

2011-12

2012-13

Total Turnoverincluding other income

1164 1412 1860 2633 3347

Profit/(loss) be-fore DepreciationandTax

(33) 74 105 234 247

Depreciation andexceptionalitem

104 43 69 78 82

ProfitbeforeTax (137) 31 37 157 165

ProvisionforTax (45) 11 11 52 44

ProfitafterTax (92) 20 26 105 121

(v) Export performance and net foreign exchange, collaborations

TheCompanyhastotalexportturnoverof` 1771.96Croresason31stMarch,2013.TheCompanyhasNetForeignExchangeearningofRs.835.95Crores.

(vi) Foreign Investments or collaborators, if any

NotApplicable

II. INFORMATION ABOUT THE APPOINTEE:

(a) Background Details

ShriM.K.Raoisinvolvedinthedaytodaymanagementof theManufacturingPlantatKashipurandvariouson-goingprojectswithregardtoconception,planningand execution thereof and has been guiding theactivities all through. Shri M.K. Rao is B.Tech.(Chemical Engineering) from Andhra UniversityCollegeofEngineeringandM.Tech.(ChemicalPlantDesign)fromIIT,Madras.ShriM.K.Raoishavinganoverall experience of 30 years of Plant operations,maintenanceandprojectsexecution.ShriM.K.Raohad joined the Company in the year 1988 as Dy.Manager (TechnicalServices)androse to the levelof Sr. Vice President and Plant Head in the year2005.ShriM.K.Raohasleadtheteamofprocessingengineers in developing engineering packages forvarious debottlenecking/plant expansions, processimprovement schemes and cost effective energyconservationschemes.

(b) Past Remuneration

During the Year 2012-13, Shri M.K. Rao was paidSalary,perquisiteandallowanceof`62.80Lacs.

(c) Recognition or Awards

NotApplicable

(d) Job Profile and his Suitability

Asstatedabove,ShriM.K.Raoisinvolvedinthedayto day management of the Manufacturing Plant atKashipurandvariouson-goingprojectswithregardtoconception,planningandexecutionthereofandhas

EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956



beenguidingtheactivitiesallthrough.ShriM.K.Raohasledtheteamofprocessingengineersindevelopingengineering packages for various debottlenecking/plant expansions, process improvement schemesandcosteffectiveenergyconservationschemes.

His inclusion asExecutiveDirector in theBoard ofDirectors of the Company has brought technicalexpertise to the Board. Keeping in view Shri M.K.Rao’s contribution to the growth of the Companyfor last 25 years, he was included in the Board ofDirectorsoftheCompany.

(e) Remuneration Proposed As mentioned in the Resolution proposed at Item

No.7oftheNotice.

(f) Comparative remuneration Profile with respect to industry, size of the Company, profile of the position and person (in case of expatriates the relevant details would be w.r.t. the country of his origin).

Theprevalentlevelsofremunerationinmanufacturingindustries, in general and the industry in particularare higher. Taking into account the turnover of theCompany and responsibilities of ShriM.K. Rao, theproposedremunerationtotheAppointeeisreasonableandinlinewiththeremunerationlevelsintheIndustry,acrossthecountryandbefitshisposition.

(g) Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial personnel, if any.

ShriM.K.RaoisseniorExecutiveoftheCompanyandhasbeen instrumental inbringingsignificantgrowthinthevolumeofitsbusinessoftheCompany.

In terms of Clause 49 of the Listing Agreement onCorporateGovernance,ShriM.K.RaoqualifiesasNon-IndependentDirector.

Except Shri M K Rao, none of the other Directors isconcernedorinterestedintheproposedresolution.

TheBoardofDirectorshasrecommendedtheproposedresolution set out at item No.7 of this Notice for yourapprovalbywayofaOrdinaryResolution.

This explanatory statement alongwith the relevantresolutionmaybetreatedasanabstractofthevariationofthetermsofcontractofappointmentofExecutiveDirectorstobedisclosedtothememberspursuanttoSection302oftheCompaniesAct,1956.

ITEM NO. 8

HumanResource is thekey resource for thecontinuinggrowth and development of the Company. Tomotivate

theemployeesandenablethemtoparticipateinthelong-termgrowthandfinancialsuccessoftheCompany,witha common objective of maximizing the shareholders’value, it is proposed to introduce theEmployeesStockOption Scheme (“ESOP”), applicable to the permanentemployees of the Company and all its subsidiaries,whether now or hereafter existing, aswell as to all theDirectorsoftheCompany.Theprincipalobjectivesoftheschemearetoattract,retainandmotivatetheemployeesofourCompany,encourageemployeestoalignindividualperformance with Company’s objectives, rewardemployee performance with ownership in proportion totheircontributionandprovideanincentiveforemployeestoexpandand improve theprofitsandprosperityof theCompany.

PursuanttotheprovisionsoftheSecuritiesandExchangeBoard of India (Employees Stock Option Scheme andEmployees Stock Purchase Scheme) Guidelines, 1999(hereinafter referred to as the “SEBI Guidelines”), anESOPCompensationCommitteeoftheBoardofDirectorsof theCompanyhasbeenconstituted foradministrationandsuperintendenceoftheESOP.

The salient features of the ESOP 2013 are givenhereunder:-

a) Thetotalnumberofoptionstobegrantedwouldnotexceed5%ofthepaidupequitysharecapitaloftheCompany;

b) ApermanentemployeeoftheCompany,includingaDirector,whetherwholetimeornot,shallbeentitledtoparticipateintheESOPScheme2013.AnyEmployeewhoisaPromoterorbelongstothePromoterGrouporwhoisaDirectorwho,eitherbyhimselforthroughhisrelativeorthroughanyBodycorporate,directlyorindirectly,holdsmorethantenpercent(10%)oftheoutstandingequitySharesoftheCompany,shallnotbeeligibleforGrantofOptionsunderthisESOP;

c) The Compensation Committee shall decide thevesting period for the Options granted to eachemployee, however that the minimum period overwhich the Options will vest will be one year. TheCompensation Committee may also provide forvestingoftheOptionsover4yearperiodastheymaydeemfit;

d) Themaximumperiodwithinwhich theoptionsshallbe vestedwill bedeterminedby theCompensationCommitteesubjecttothemaximumperiodoverwhichthevestingtakesplaceshouldnotexceed5years;

e) The exercise price shall be determined by the



Compensation Committee and shall be fixed as apercentageofthemarketvalueofsharesonthedateofGrant.TheCompensationCommitteeshallnotfixtheexercisepricebelow90%ofthemarketpriceofsharesonthedateofgrantofanoption.TheexercisepriceofthesharesunderthisESOPshallnotbelessthanthefacevalueof thesharesasonthedateofgrantofanoption;

f) Anemployeecanexercisehisoptionsonthevestingperiodoftheoptionbeingcompleted.Theemployeeshallmake awritten application for the exercise ofsuchOptionsthroughanExerciseApplicationtotheCompensationCommittee;

g) The Compensation Committee will determine theappraisal process for determining the eligibility ofemployeestotheESOPScheme2013inconsultationwith thesupervisor,manageror the team leaderoftheeligibleEmployee;

h) ThemaximumpercentageofOptionswhichcanbeissuedtoanemployeeinanyonefiscalyearcannotexceed0.99%oftheissuedcapitaloftheCompany.Thepercentagemaybeincreasedwiththeapprovalof the shareholders of the Company in a generalmeeting;

i) The Company shall conform to the accountingpoliciesassetoutinSchedule1oftheSEBIESOPGuidelines;

j) The company shall use the valuation method forvaluingitsoptionsasprescribedbytheprovisionsofSEBIESOPGuidelines;

k) In case the company calculates the employeecompensation cost using the intrinsic value of thestockoptions, thedifferencebetween theemployeecompensation cost so computed and the employee compensation cost that shall havebeen recognizedif it had used the fair value of the options, shall bedisclosedintheDirectors’ReportandalsotheimpactofthisdifferenceonprofitsandonEPSoftheCompanyshallalsobedisclosedintheDirectors’Report.

The ESOP Compensation Committee shall, inter alia,formulatethedetailedtermsandconditionsoftheESOPincluding:

a) thequantumofoptiontobegrantedunderanESOPperemployeeandinaggregate;

b) theconditionsunderwhichoptionvestedinemployeesmaylapseincaseofterminationofemploymentformisconduct;

c) theexerciseperiodwithinwhichtheemployeeshouldexercise theoptionand that optionwould lapseonfailure to exercise the option within the exerciseperiod;

d) thespecifiedtimeperiodwithinwhichtheemployeeshall exercise the vested options in the event ofterminationorresignationofanemployee;

e) the rightofanemployee toexerciseall theoptionsvestedinhimatonetimeoratvariouspointsoftimewithintheexerciseperiod;

f) The procedure for making a fair and reasonableadjustment to the number of options and to theexerciseprice incaseofcorporateactionssuchasrightsissues,bonusissues,merger,saleofdivisionandothers.

Inthisregard,followingshallbetakenintoconsiderationbytheESOPCompensationCommittee:(i) the number and the price of ESOP shall be

adjusted in a manner such that total value oftheESOPremainsthesameafterthecorporateaction;

(ii) for this purpose global best practices in thisarea including the procedures followed by thederivativemarkets inIndiaandabroadshallbeconsidered;

(iii) Thevestingperiodandthelifeoftheoptionsshallbeleftunalteredasfaraspossibletoprotecttherightsoftheoptionholders.

g) the grant, vest and exercise of option in case ofemployeeswhoareonlongleave;and

h) theprocedureforcashlessexerciseofoptions. The ESOP Compensation Committee shall also

frame suitable policies and systems to ensure thatthereisnoviolationof;(a) SecuritiesandExchangeBoardofIndia(Insider

Trading)Regulations,1992;and(b) Securities and Exchange Board of India

(Prohibition of Fraudulent and Unfair TradePractices relating to the Securities Market)Regulations,1995,byanyemployee.

The ESOP Compensation Committee shall have theauthorityinitsdiscretion:i) todetermineexerciseprice;ii) toselect theemployees towhomoptionsmayfrom

timetotimebegrantedhereunder;iii) todeterminethenumberofsharestobecoveredby

eachsuchoptiongrantedhereunder;iv) to determine the vesting period and the exercise

period;

v) to approve forms of agreement for use under theESOP2013;

vi) todeterminethetermsandconditions,notinconsistentwith the terms of the plan, of any option grantedhereunder;



vii) toprescribe,amendandrescindrulesandregulationsrelatingtotheESOP2013;

viii) toconstrueandinterpretthetermsoftheESOP2013andoptionsgrantedpursuanttotheESOP2013;

ix) todeterminethequantumofoptiontobegrantedperemployeeandinaggregate;and

x) to delegate such power and authorities to suchperson/s on such terms as the CompensationCommitteemaydeemfitandapprove.

As the ESOP 2013 provides for issue of shares to beofferedtopersonsotherthanexistingshareholdersoftheCompany,consentofthemembersissoughtpursuanttoSection81(1A)andallotherapplicableprovisions,ifany,of theCompaniesAct,1956andasperclause6of theSEBIGuidelines.

None of theDirectors of theCompany are in anyway,concerned or interested in the resolution, except to theextentofthesecuritiesthatmaybeofferedtothemundertheESOP2013.

TheBoardofDirectorshasrecommendedtheproposedresolutionssetoutattheitemNo.8foryourapprovalbywayofaSpecialResolution.

ITEM NO. 9

The growth plans of the Company envisage promotionofGreentechnologybasedChemicalsandexpansioninotherareasofoperation.Whilethecurrentinternalaccrualsfromtheoperationsarestrong,theaboveprojectswouldrequiresignificantoutlayof funds in thenext4-5years.Theseprojectswillnecessitateexternalinfusionoffundsatdifferentpointsoftimeinthefuture.

WithaviewtoraiselongtermfinanceaswellasmeetingCompany’s fund requirements for expansion, capitalexpenditureandforotherexpendituresaspermittedunderthe prevailing Guidelines in this regard, the Companyproposes to issue Equity Shares and/or instruments orsecuritiesconvertibleintoequitysharesoftheCompanysuch as Global Depository Receipts and/or AmericanDepositoryReceiptsand/orconvertiblepreferencesharesand/orconvertibledebenturesorbonds(compulsorilyand/oroptionally,fullyand/orpartly),and/ornon-convertibledebentureswithwarrantsand/orsecuritieswithorwithoutdetachable /non-detachablewarrantsand /orwarrantswitharightexercisablebythewarrant-holdertosubscribefor equity shares and /or Foreign Currency ConvertibleBonds (FCCBs) convertible into equity shares at theoptionoftheCompanyortheholder(s)thereof,uptoan

aggregateprincipalamountof`250,00,00,000(RupeesTwoHundredfiftyCrores)or itsequivalent inanyothercurrency on the terms and conditions as stated in the NoticeoftheMeeting.

TheaboveissuewouldbesubjecttotheapprovaloftheGovernmentofIndia(GOI),ReserveBankofIndia(RBI),SecuritiesandExchangeBoardofIndia(SEBI)andotherauthoritiesconcerned,whereverapplicable.

The pricing of the equity shares to be issued pursuantto the resolution to be approved at the Meeting uponexercise of the option of conversion of the FCCBs willbe in accordance with the prescribed guidelines underForeignCurrencyConvertibleBondsandOrdinaryShares(ThroughDepositoryReceiptMechanism)Scheme,1993as amended as also in accordance with the terms ofoffering.

These FCCBs may be listed on Stock Exchange(s),abroad,asmaybedeemedfitbytheBoard.Theequityshares issued and allotted upon exercise of the optionavailable on the FCCBs shall be listed on the StockExchanges in Indiawhere theCompany’ssecuritiesarelisted.

This resolution isproposedasanenabling resolution toauthorizetheBoardofDirectorstoraiselongtermfinanceas well as meeting Company’s fund requirements forexpansion,capitalexpenditureandforotherexpendituresaspermittedundertheprevailingGuidelinesinthisregardmeeting Company’s fund requirements for expansion,capital expenditure and for other expenditures aspermittedunder theprevailingGuidelines in this regard.This resolution also givesadequate flexibility in respectof working out themodalities of issue as also to issueFCCBsinsuchtranches,atsuchtimesastheBoardmayinitsabsolutediscretiondeemfit.

Under Section 81(1A) of the Companies Act, 1956,shareholdersapprovalbyaspecialresolutionisrequiredforissueofsharestopersonsotherthanexistingshareholdersoftheCompany.NoneoftheDirectorsoftheCompany,isinanyway,concernedorinterestedinthesaidresolution.

The resolution set out at ItemNo. 9 is proposed to bepassedasaSpecialResolution.

ByorderoftheBoard

Place :NOIDA,U.P. Lalit Kumar Sharma Date :30thMay,2013 Company Secretary



To The Members

Directors’Report

YourDirectorsarepleased topresent theTwentyNinthAnnualReporttogetherwiththeAuditedAccountsoftheCompanyfortheyearended31stMarch,2013.

FINANCIAL RESULTS (Amountin`lacsexceptearningspershare)

Year ended 31.03.2013

Year ended 31.03.2012

SalesAndOtherIncome 334,661 263,325Profit/(Loss)BeforeDepreciation,ExceptionalItemAndTax

24,743 23,441

Depreciation 8,243 7,753ProfitBeforeTax 16,500 15,688ProvisionForTax 4,386 5,229NetProfit 12,094 10,459EarningPerShare(InRs.) 41.10 37.51

INCREASE IN AUTHORISED SHARE CAPITALDuringtheyearunderreview,thecompanyhasincreaseditsAuthorisedShareCapitalfrom̀ 30Crorestò 45Crores.ThepaidupCapitaloftheCompanyhasalsoincreasedfrom` 2788.25Lacsto` 3096.15Lacsduetoallotmentof3,079,000EquitySharesof` 10eachatapremiumof`128.36perShares toPromotersandPromoters’groupon preferential allotment basis, in accordance with theprovisionsof theSEBI (IssueofCapital andDisclosureRequirements)Regulations2009.

DIVIDENDYourDirectorsarepleasedtorecommendafinaldividendof` 2(RupeesTwoonly)perequityshare.Theoutgoondividendwillbe` 724.47Lacsincludingtaxondividend.During the year under review, your Company has alsopaidinterimdividendof` 4(RupeesFouronly)perequityshare.

PERFORMANCEDuring the year under review, the growth in Profit waspossibleasaresultofhighersalesrealization,increasedproductionandproductivity,bettercostmanagementandoperationalefficiencies.Sales and other income for the year under review hasbeen` 334,661Lacsascomparedto` 263,325Lacslastyear registering an increase of 27%. Profit/(Loss) fromoperationsbeforedepreciation& tax for theyearwas` 24,743Lacsascomparedto` 23,441Lacslastyear.The

NetProfit after Tax for the yearwas` 12,094 Lacs ascomparedtoNetProfitof` 10,459Lacslastyearshowinganincreaseof16%.

DuringtheyearunderreviewsalesofGlycols(MEG,DEG,TEGandHeavyGlycols)hasincreasedto91,215MTascomparedto82,639MTduringthelastyearandinSalesValueto`69,337Lacsfrom` 59,211Lacsascomparedto lastyear.TheCompanyhaswitnessedan increase inExportsat`1,77,197Lacsascomparedto` 1,25,456Lacsduringthelastyear.TheCompanyhasshownaremarkableperformanceinexportsalesandregisteredagrowthof41%despiteslowdownintheinternationalmarkets.

TheCompanyisthelargestmanufacturerofBio-MEGintheworldmadeoutofagriculturefeedstocki.e.MolassesandEthanol.Bio-MEGhasanapplication,apartfromotherproducts, inPETbottles,whichisusedforpackagingofbeverageproducts.

TheEODerivativesbusinesshasregisteredhighersalesvolume of 1,04,157 MT during the year under reviewas compared to 94,902 MT during previous year andalsohigherSalesValueat`1,00,525Lacscompared to` 88,959Lacsduringthepreviousyear.

The performance of Natural Gums Division under theChemical Segment had been overwhelming during theyearunderreview.Yourcompanyhascarvedanicheinworldmarket andnow is knownasa consistent qualitymanufacturer.

NaturalGumsbusinesssegmentwitnessedgrowthinprofitsduetohighersalesrealization.Duringtheyearunderreview,Guargumpowderandderivativessaleshasincreasedto` 74,243Lacsascomparedto` 39,491Lacsduringpreviousyearandregisteredagrowthof88%overthelastyear.

The borrowing cost has increased to` 13,272 Lacs ascompared to `11,320Lacs lastyear,due to increase intheborrowingsaswellasincreaseintheoverallinterestratesbyallthebanks.

EXPORTSDuringtheyearunderreview,yourCompanyhasachievedtotal export turnover of ` 177,197 Lacs as comparedto `125,456 Lacs last year. Your Company hopes toachieve reasonable growth in the overall export salesin the current year though the market conditions remain extremelychallenging.Companyhasbeengranted`OneStarExportHouse’statusbyGovernmentofIndia.

ETHYL ALCOHOL (POTABLE) & EXTRA NATURAL ALCOHOLDuring theyear,yourCompanyregistered totalsalesof



` 66,027Lacscomparedto` 50,168LacslastyearintheEthylAlcohol(Potable)division.Duringtheyearthrustwasgivenon theexportofhighqualityExtraNeutralAlcohol(ENA).TheCompanywasawardedGrandGoldAwardforthesecondconsecutiveyear fromMONDESELECTION,BelgiumforitshighqualityofExtraNeutralAlcohol.

Companyhasthemostmoderncaptivedistillery inAsiaandishavinglicenseforoperationsinandsaleofCountryLiquorandIndianMadeForeignLiquor(IMFL)intheStatesofUttarPradeshandUttarakhand.Duringtheyear,IMFLbrandsof theCompanyhavebeensupplied toCanteenStoresDepartment(CSD)ofIndianDefenceForces.

Company has a tie-up with Bacardi for bottling of theirproductsatourKashipurbottlingunit.

CompanyisinprocessofintroducingitsIMFLbrandsinthehigherrangemarketandbrandbuildingprogramshallbeintroducedinthecurrentfinancialyear.

ENNATURE BIO-PHARMA DIVISION (100% EXPORT ORIENTED UNDERTAKING)Companyhasa100%ExportOrientedUnit(100%EOU)by the nameofEnnatureBio-pharmadivision. Theunithas established Supercritical Fluid Extraction- CO2 and solventextractionfacilityatDehradun.Theunit isGMP,ISO9001,ISO22000,HACCP,KosherandHalalcertified.UnitatDehradunhasstartedproductionandR&Dcenterduly recognized by Ministry of Science & TechnologyGovernmentofIndiaisworkingvigorouslyontheprocessofstabilizinganddevelopingvariousPhytopharmaceuticalandNutraceuticalproductsforthedevelopedmarkets.

CompanyduringtheyeardevelopedIndiangrownhealthsupplementsforthedevelopedmarketwithZeroresidualsolvents bySCF-CO2 technology. These products havegivenstupendousboosttothegrowthofthebusinessofBio-Pharma. During the year, Company has become aqualifiedsuppliertomanylargeconglomeratesworldwidefor natural colors, nutraceuticals, health supplementsand plant based Active Pharmaceuticals Ingredients(APIs).Companyhasestablished its nameasaqualitymanufacturer and supplier with stringent QC and QAcontrolsinplace.

During theyear,EnnatureBio-Pharmadivisionachievedaturnoverof̀ 6,422Lacsascomparedtò 3,638Lacsduringthe lastyearandregisteredagrowthof77%over the lastyear. Variety inProduct Folio availablewith theCompanyhas created enhanced business opportunity and a betterpenetrationintodomesticaswellasinternationalmarket.

Your company has enhanced its production capabilitiesfrom 200 MT to 400 MT hence achieved better plantutilizationfrom55%to75%.

Duringtheyearunderreview,yourCompanyhascreatedfour new process patents to hold intellectual property

rights on products namely; Thiocolchicoside, Marigoldlutein, DHA and Green Ginger Shogaol.We have alsodesigned various new formulations,micro-encapsulatedformsfromtheexistingSCF-CO2processinordertohavebetterproductportfolio.

Companyisworkingtowardscreatingvalueforitsgenericproductsbybranding,repositioning&generatingtechnicalbackupwiththehelpofprofessionalinstitutes.

INDUSTRIAL GASESTheIndustrialGasesdivisionproducingOxygen,Nitrogenand Argon with an overall capacity of 13,460 NM3/h.During the year under review, Company producedapproximately669lacsNM3ofOxygenand231lacsNM3ofNitrogen.BothOxygenandNitrogenweresuccessfullymarketedandalsoused forown requirement. Industrialgasesdivisionalsoproduced16lacsNM3ofArgon.

TheIndustrialGasesdivisionhasalsoproducedfoodandindustrialgradeliquidCarbonDi-oxide(CO2)atKashipurPlant having capacities of 160 MT/day each, to meetgrowingdemand in thedomesticmarket.Companyhasproduced 50,073MT of Carbon Di-oxide (CO2). Duringtheyear,IndustrialGasessegmentregisteredtotalsalesof` 3,390Lacscomparedto`3,144Lacslastyear.

Your Company has its own in house facilities formanufacturing of ETHYLENE OXIDE (EO) and LiquidCarbon-Dioxide (CO2) at its Kashipur plant,suitable forSterilization of Disposable Surgical & Medical Devices,spicesandpackingsubstanceslikerubberplasticetc.ItistheonlyplantinNorthernIndiatohavesuchmanufacturingfacility, therefore, we have a distinct edge over othersuppliersinthemarket.

During the year under review,Company has registeredtotalsaleof600MTofEOCO2 havingavalueof` 2.49CroresandCompanyhopes toachievebetter results incomingyears.

JOINT VENTURE FOR PRIVATE FREIGHT TERMINAL (PFT)The Company has a Joint Venture with FourceeInfrastructureEquipmentsPvt.Limited(FIEPL)forsettingupaprivatefreightterminalprovidingrailwaybasedlogisticservicesandotherfacilitiesatKashipur,Uttarakhand,asprovidedunderextantguidelinesoftheIndianRailways.ThefacilityiscomingupattheareaadjacenttotheexistingplantofCompanyatKashipur.

ThePartieshaveenteredintoaJointVentureAgreementto co-operate and partner with each other for thepurposeofsetting-up,operatingandmanaging thesaidPrivateFreightTerminal(PFT) inorder toprovidemulti-modal logistics solutions to our Company and externalcustomersandenhanceitsservicedeliverycapacity.Withthecommissioningofthisfacility,logisticsmovementfor



both inbound and outbound cargowould becomemoredependable, reliable, economical, would also ensureon-time delivery of goods and enable better inventorymanagement.

The total initial equity investmentbaseof theCompanywouldbearound` 30Crores,whichwouldbecontributedbyJointVenturePartnersequally.TheestimatedprojectcostwouldbeRs.75Crores.Thefacilityisexpectedtobecommissionedbylastquarterofthisfinancialyear.

EXPANSION / MODERNISATION / DIVERSIFICATION PLANSThe Company is actively pursuing growth opportunitiesand looking at areas to reduce its cost of production.Company is also evaluating plans to further expand itsEthoxylatescapacitytoimproveitsproductmixandalsoconsideringthesettingupofaPowerPlanttoreduceitsdependenceonexternalpower.

Company has installed another SLOP fired boiler atKashipur,whichwillprovideadditionalcoalsaving.

TheCompanyissettingup10tonbiomass/daycapacitypilot plant to convert lignocellulosic agricultural wastebiomass to ethanol by using the bench-scale processdeveloped atDBT-ICTCentre for energyBio-Sciences,Mumbai.ThePilotPlantwill useagriculturalnon-fodderlignocellulosic waste (i.e. Rice Straw, Wheat Straw &Bagasse)asfeedstocktomanufactureethanol.TheplantwillaimatsolvingtechnicalroadblocksinLignocellulosicethanolTechnologyinordertoimprovetheoverallsituationwithregardtoalcoholavailability.Theplantisbeingset-upwiththeDepartmentofBio-Technologyaid/loan.

FINANCEDuringtheyearunderreview,CompanyhasraisedTermLoansof` 36,574Lacsandrepaidtotalloansof` 29,613Lacs

TheCompanyhasbeenregularinmeetingitsobligationstowardspaymentofprincipal/interesttoFinancialInstitutions/Banks/Debentureholders/FixedDepositholders.

ADOPTION OF POLICY FOR PROTECTION OF WOMEN AT WORKPLACEIn compliance to the Sexual Harassment of Womenat Workplace (Prevention, Prohibition and Redressal)Act 2013 passed with effect from 23rd April 2013,the Company adopted the guidelines & procedures toprevent,prohibitandpunishsexualharassmentofwomenattheworkplace.ThepolicyasapprovedbytheBoardisenforcedwithimmediateeffectandanInternalComplaintsCommitteeisconstitutedthereunder.

LISTING OF SECURITIESThesharesof theCompanyshallcontinue tobe tradedat theBombayStockExchangeand theNationalStockExchange.

SUBSIDIARY COMPANIESTheCompany operates a sugarmanufacturing plant inthe state of Uttar Pradesh with a crushing capacity of7500 tonesperday (TCD)alongwithamoderndistilleryof60KLperday(KLPD)producinghighqualityrectifiedspiritandaninternalbagassefiredco-generationplantof11MWcateringtothecaptivepowerneedsofthesugaranddistilleryunits.

ThenetworthofShakumbariSugarandAlliedIndustriesLimited (SSAIL)hasbeencompletelyeroded, therefore,theCompanyhasbeendeclaredasSickCompanyunderthe provisions of section 3(1) (o) of the Sick IndustrialCompanies(SpecialProvisions)Act,1985.TheBIFRhasdirected IDBI Bank Ltd. being theOperating Agency toprepareandsubmittherevivalschemeforSSAIL.

Companyhasa100%subsidiaryinSingaporetoaugmentitsactivitiesinSouthEasternregion&helpthemarketingofproductsfromChemicalPlant,NaturalGumsPlantandSupercriticalFluidExtractionfacilitytolargebuyersinUS,EuropeandSouthEastAsia.

Your Company has three subsidiary companies, i.e.Shakumbari Sugar & Allied Industries Limited (SSAIL),IGLFinanceLimitedandIGLCHEMInternationalPte.Ltd.TheMinistry ofCorporateAffairs,Government of India,videGeneralCirculardated8thFebruary2011and21stFebruary 2011 has granted a general exemption fromcompliancewithsection212oftheCompaniesAct,1956,subjecttofulfillmentofconditionsstipulatedinthecircularfornon-inclusionofSubsidiaryCompanies’AnnualReportwith the Annual Report of the Holding Company. TheCompany has satisfied the conditions stipulated in thecircularandhencehaveavailedtheexemption.NecessaryinformationrelatingtothesubsidiarieshasbeenincludedintheConsolidatedFinancialStatements.

The Company undertakes that annual accounts of thesubsidiarycompaniesandtherelateddetailedinformationshallbemadeavailabletoshareholdersoftheCompanyand subsidiary companies seeking such information atanypointoftime.Theannualaccountsofthesubsidiarycompanies shall also be kept for inspection by anyshareholders in theheadofficeof theCompanyandofthesubsidiarycompaniesconcerned.TheCompanyshallfurnishahardcopyofdetailsofaccountsofsubsidiariestoanyshareholderondemand.

FIXED DEPOSITDuring the year, yourCompany had neither invited noracceptedanyfixeddepositsfromthepublic.There are no overduedeposits except unclaimeddeposits amountingto ` 6.86Lacs.

DIRECTORSSmt. Jayshree Bhartia, Shri Jagmohan N Kejriwal and



ShriM.K.Rao,DirectorsoftheCompany,retiringbyrotationand being eligible, offer themselves for reappointment.YourDirectorsrecommendthereappointmentofretiringDirectorsforyourapproval.

DIRECTORS’ RESPONSIBILITY STATEMENTPursuant to Section 217(2AA) of the Companies Act,1956,yourDirectorsconfirmthat:- in the preparation of the annual accounts, the

applicableaccountingstandardshavebeenfollowedalong with proper explanation relating to materialdepartures;

- appropriateaccountingpolicieshavebeenselectedandappliedconsistentlyandmadejudgementsandestimates that are reasonable and prudent so astogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearended31st March,2013andof theprofitand lossof theCompanyforthatperiod;

- proper and sufficient care has been taken for themaintenance of adequate accounting records inaccordance with the provisions of the CompaniesAct,1956forsafeguardingtheassetsoftheCompanyand for preventing and detecting fraud and otherirregularities;

- theannualaccountshavebeenpreparedonagoingconcernbasis.

MANAGEMENT DISCUSSION AND ANALYSISAseparatereportisappendedherewith.

CORPORATE GOVERNANCEThe Board of Directors supports the broad principlesof Corporate Governance. The report on CorporateGovernanceasstipulated inclause49,asamended,ofthe listing agreement with the stock exchanges for theyear ended 31stMarch,2013andAuditor’sCertificateonCorporateGovernanceareappendedherewith.

AUDITORS & AUDIT REPORTTheAuditors,M/s.Lodha&Co.,CharteredAccountants,retiringattheensuingAnnualGeneralMeetingandofferthemselvesforreappointment.TheyhaveconfirmedthattheyareeligibleunderSection224(1B)oftheCompaniesAct,1956forreappointment.

The Auditors in their Audit Report have invited theattentionof theShareholders towardsnon- provisioningbytheCompanyagainsttheinvestmentinitssubsidiaryCompany, Shakumbari Sugar and Allied IndustriesLimited (SSAIL) amounting to ` 5,427.50 Lacs andloans amounting to ` 1,713.30Lacs.TheAuditorshavealso invited the attention of the Shareholders towardsCorporate Guarantee extended by the Company onbehalfofSSAILagainstoutstandingamountofFinancial

Institutions and Banks as stated in Note 27 (A) (iii) ofthe Financial Statements. The Company has alreadyprovideditsclarificationascontainedinnoteno.34oftheFinancialStatementsi.e.consideringtheintrinsicvalueoftheassetsofSSAIL&longtermnatureoftheinvestmentanddirections issuedbyBIFR forpreparationof revivalscheme by the Operating Agency, the management isconfidentoftherecoverability/realisabilityofthevalueofInvestment and loans provided to SSAIL, therefore, noprovisionintheopinionoftheManagementatthisstageisconsiderednecessary.

COST AUDITORSCompany has appointed M/s R J Goel and Co., CostAccountants as Cost Auditors of the Company forthe financial year 2012-13 under section 233B of theCompaniesAct,1956.CostAuditorshaveconfirmedthattheyareeligibleunderSection224(1B)oftheCompaniesAct, 1956 for reappointment. The Cost Auditors haveattendedtheAuditCommitteeMeeting,wheretheirReportwasdiscussed.

Duedate for filing of theCostAuditorsReport inXBRLmode for the year 2012-13 with Central Government is30thSeptember,2013.TheduedateforfilingoftheCostAuditorsReportinXBRLmodefortheyear2011-12withCentralGovernmentwas 28th February, 2013, however,theCompanyhadfiledthesameon29thDecember,2012.

ENVIRONMENT, ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, ETC.The Company is working actively on various projectsefficiently, approaching and targeting towards CleanDevelopmentMechanism (CDM) and reduction inGHGemissions.

The Company has installed unique technology forconvertingdistilleryspentwashintofuelatboththeplantsviz.KashipurandGorakhpur.Throughthistechnology,thespentwashisconcentratedthroughfiveeffectevaporator.The concentrate is utilized as fuel to substitute coal ina specifically designedboiler. Thehighpressure steamso generated is passed through the turbine for powergenerationandlowpressuresteamafterturbineisutilizedin the plant for operation. Due to this the Company issaving fossil fuel in terms of coal and substituting theessentialpowergenerationthroughDGsets.

The Biomass based Cogeneration Project activitytaken up by the Company at its Gorakhpur, U.P. plantis successfully registered under Clean DevelopmentMechanism(CDM)projectbyUnitedNationsFrameworkConventiononClimateChange (UNFCCC) for ten yearfixed crediting period 16/12/2010 to 15/12/2020. UndertheCleanDevelopmentMechanism,emission-reduction(or emission removal) projects in developing countriescan earn certified emission reduction credits. These



saleablecreditscanbeusedbydevelopedcountries tomeetapartoftheiremissionreductiontargetsundertheKyotoProtocol.

Your Company has received certification of EnergyManagementSystem(ISO50001:2011)underintegratedmanagementsystem.

InaccordancewiththeprovisionsofSection217(1)(e)oftheCompaniesAct,1956andtheCompanies(DisclosureofparticularsintheReportofBoardofDirectors)Rules,1988therequiredinformationrelatingto“ConservationofEnergy, Technology Absorption and Foreign Exchangeearningsandoutgo”isannexedheretoandformspartofthisReport.

HUMAN RESOURCESYour Directors wish to place on record their deepappreciationtoemployeesatall levelsfortheirall-roundefforts,dedication,commitmentandloyalserviceswhichhelped in achieving satisfactoryperformanceduring theyear.

The required information as perSection 217(2A) of theCompanies Act, 1956 read with Companies (Particularof Employees) Rules, 1975, forms part of this report.However,aspertheprovisionsofSection219(1)(b)(iv)oftheCompaniesAct,1956,thereportandaccountsarebeingsenttoallshareholdersoftheCompanyexcludingtheStatementofparticularsofEmployeesunderSection217(2A) of the Act. Any shareholder interested inobtainingacopyof thesaidstatementmaywrite to theCompanySecretaryatHeadOfficeoftheCompany.

CORPORATE SOCIAL RESPONSIBILITYGood governance demands adherence of socialresponsibilitycoupledwithcreationofvalueinthelargerinterestofthegeneralpublic.YourCompany,Directorsandits dedicated employees continue to contribute towardssociety by several worthwhile causes. Your Companyaims to enhance the quality of life of the community ingeneralandhasastrongsenseofsocialresponsibility.

TherangeoffollowingCorporateSocialactivitiesbeginsinandaroundKashipur(Uttarakhand):

1 organizing regular Medical camps (three days aweek)sothatvillagersgetmedicalassistancefreeofcost;

2 organizingblooddonationcamps;

3 facilitatingplantationoftreesforbetterenvironment;

4 facilitatinginconstructingroads,bridges,drainsandinstallingstreetlamps;

5 promotingschoolsinvicinity(AjayBhartiaSaraswati

ShisuMandirJr.HighSchool,Kashipur);

6 providing furniture and financial assistance forrenovationofCommunitySchoolatvillageBarkhedi,Kashipur;

7 installed hand pumps for drinking water, which isbenefittingnearbyareas;

8 extended support to the victims of flood affectedduringMonsoon;

9 distributionofblanketstopoorduringwinter;

10 providing financial assistance for promotion ofsports and socio-cultural activities in the State ofUttarakhand;

11 supporting the local administration in fighting andmanaging fire accidents and other disasters takingplaceinthesurroundingareaofPlant;

12 Sponsoringmedicaltreatmentforpeopleinneed.

Your Company is supporting a community school atDwarka, New Delhi through a charitable organizationNirmal Bhartia Society for Education Promotion. Theschoolisequippedwithmodernfacilitiesandalsohasagood infrastructure.Theschoolpossessesqualifiedandexperienced faculties, which enable children tomake agreatfuture.TheCompanylentfinancialassistancetotheunderprivilegedchildren under its CSR activity. Your Company is alsoextendingeducationalandon-the-jobtrainingtothestudentsof many professional Institutions and the professionalsofmanyotherManagementandEngineering Institutions,whichhelpsthemtostartanewbeginningfortheirfutureprofessionalcareer.The Company has lent a helping hand to the affectedpeople of Uttarakhand natural calamity by providingfinancialassistance.AttheendyourCompanyconstantlystriveshardtoservethe society by implementing such other policies whichbenefitedpeopleatlarge.ThecompanyalwaysendeavorstogivebacktheSocietyforthesupporttheCompanyhasreceivedtoriseandflourish.

ACKNOWLEDGEMENTYourDirectorsplaceonrecordtheirdeepappreciationofthesupportgivenby theCentralGovernment,StatesofUttarakhandandUttarPradesh,FinancialInstitutionsandbanksandlooksforwardtotheircontinuedsupport.

forandonbehalfoftheBoard

Place:NOIDA,U.P. U.S. BhartiaDated:30.05.2013 Chairman and Managing Director



AnnexuretotheDirectors’Report

Particulars as required under Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors Report for the year ending 31st March 2013.

CONSERVATION OF ENERGY(a) Energy Conservation Measures Taken.

1. Installation of 2nd Slop fired boiler resultingin increased utilization of concentrated slopsfor steam generation and reduce the coalconsumption.

2. On stream factor of effluents’ evaporator unitincreasedafterinstallationofforcedcirculationin4th&5thstage.OnstreamfactorwasalsoincreasedafterprovisionofcentrifugeDecanters.

3. Installation of VFD on Biogas Blower andCompressorresultinginpowersavings.

4. Steam condensate recovery form EthoxylateVAMunitandGEAplant.

5. ENAPlantHQcolumncondensaterecoveryandrecycletoboilersresulting inheatconservation&watersaving.

6. ProcesscondensateofEvaporatorplantisusedas a dilution in fermentation resulting in Rawwaterandenergysaving.

(b) Additional investment and proposals, if any, being implemented for reduction of consumption of energy:

Followingschemesarebeingimplemented:1. Extraction back pressure steam turbine of 3.5

MWunderimplementation.2. ReplacementoflivesteaminT-190withprocess

dehydrationstreamresultinginLPsteamsaving.3. ReplacementoflivesteaminT-160withprocess

dehydration stream resulting in LP steamsaving.

4. RecoveryofsteamcondensateinGuargumunit.5. RecoveryofSteamcondensatefromglycolether

dryerunitandeffluentEvaporatorHighheater.6. Flashsteamrecovery fromsteamBoilerdrums

waterblowdown.7. ReducingtheFOconsumptioninMEGheaterby

maximizingthebiogasinheater.8. Provision of VFD in tempered water pump of

EthoxylationStirredreactor.9. ReplacementoffuelinMEGheaterfromFurnace

OiltoNaturalgas.10. Provision of VFD in cooling tower fans

(Phase-2).11. Installationof12MWSTGsettosellthesurplus

powertoUPCL.12. Installation of Reboiler in ENA plant analyzer

columntoreducetheeffluent.

13. InstallationofVFDinspentwashrecyclespumpstosavethepower.

14. InstallationofVFDinIDfanofLIPIboilertosavethepower.

15. InstallationofLEDlightingandsolarheaters.16. Installationofforcedcirculationin4th&5th stage

in Evaporator unit at Gorakhpur resulting inincreasedcapacity.

(c) Impact of the measures at (a) and (b) for reduction of energy consumption and consequent impact

ENERGY CONSERVATION MEASURES BENEFITS: Saving of Coal by Max.Biogasutilization inBoilers Upto53.52MT/day PreheatingofBoiler FeedWater Upto55.10MT/day OperationofEvaporator refluxPreheater Upto1.28MT/day InstallationofBoilerfeed water preheater in MEGProcessHeaters Upto2.19MT/day Preheatingof12MW turbinecondensatewith DehydrationSteamcondensate Upto6.91MT/day Utilizedhotcondensatein GEAandGEto GenerateLPsteam. Upto4.3MT/day Utilizedsteamcondensate togenerateflash SteaminGuarGumunit Upto4.93MT/day Saving of Power by OperationofTGSetat 120161.56MWH Optimumload(Kashipur) ofPower OperationofTGSetat 18666.31MWH Optimumload(Gorakhpur) ofPower Generated during the year (Lastyear18553.7MWH) Saving of Fuel (FO) by Utilizationofwastegas/ Upto18.98MT/Day BiogasintheProcessHeater Saving of Coal by SloputilizationinBoiler Upto94.46MT/Day Saving of Rice Husk by Max.SloputilizationinBoiler Upto300MT/day Processsteamcondensate Upto750MT/day utilizationinBoilerd) Total energy consumption and energy consumption

perunitofproductionasPrescribedForm“A”.



FORM AFormfordisclosureofParticularswithrespecttoconservationofenergy

Units Year Ending March 2013 YearEndingMarch2012

A. Power and Fuel Consumption

KASHIPUR PLANTi) Electricity a)PurchasedUnit 1000KWH 153046.68 156696.50 Total amount ` Lacs 7259.015 7385.52 Rate per Unit `/KWH 4.74 4.71 b)OwnGenerationthroughDGSets 1000KWH 6739.12 6346.79 UnitsperKg/LiterofDieselOil/HPS KWH/Kg 4.52 4.60 Cost/Unit `/KWH 9.90 8.56ii) Coal Quantity MT 437821.02 450157.10 TotalCost ` Lacs 21426.66 18294.47 AverageRate `/MT 4893.93 4064.01iii) Bagasse Quantity MT 6566.71 11124.15 TotalCost ` lacs 121.69 198.67 AverageRate `/MT 1853.06 1785.97iv) Fuel Oil (LDO/RFO) Quantity MT 5079.94 6273.82 TotalCost ` Lacs 2165.45 2369.42 AverageRate `/MT 42627.55 37766.82v) Others/Internal Generation a) FromBackPressureTurbine Quantity 1000KWH 69251.26 65493.83 TotalCost ` Lacs Nil Nil AverageRate `/KWH Nil Nil b) FromExtraction,BackPressure&CondensingTurbine Quantity 1000KWH 50910.31 51224.26 TotalCost ` Lacs 2565.90 2244.8 AverageRate `/KWH 5.04 4.38 Total(a+b) 1000KWH 120161.57 116718.08GORAKHPUR PLANTi) Electricity a) PurchasedUnit 1000KWH 4258.84 4471.24 Total amount ` Lacs 319.11 259.44 Rate per Unit `/KWH 7.49 5.80 b) OwnGenerationthroughDGSets 1000KWH 236.30 89.37 UnitPerKG/LitofDieselOil/HPS ` Lacs 32.54 11.69 Cost/Unit ` KWH 13.77 13.09ii) Rice Husk Quantity MT 66484.70 57277.17 TotalCost ` Lacs 1685.98 1422.27 AverageRate `/MT 2535.89 2483.14iii) Coal Quantity MT 13410.77 16456.79 TotalCost ` Lacs 720.46 768.87 AverageRate `/MT 5372.24 4672.02iv) Other/Internal Generation (FromBackPressureTurbine) Quantity 1000KWH 18666.31 18553.70 TotalCost ` Lacs Nil Nil AverageRate `/KWH Nil NilENNATURE BIO-PHARMA PLANTi) Electricitya)PurchasedUnit 1000KWH 3989.68 3329.14 Total Amount ` Lacs 184.64 144.01 Rate per unit `/KWH 4.63 4.33b)OwnGenerationthroughDGSets 1000KWH 827.759 376.43UnitperKg/LitofDieselOil/HPS Kg/lt 3.51 3.44

Cost/Unit `/KWH 11.26 10.50B. CONSUMPTION PER UNIT OF ALCOHOLS KASHIPUR PLANT Electricity MWH/MT 1.023 1.062

FuelOil(LDO/RFO) MT/MT 0.019 0.024

Coal MT/MT 1.598 1.708

GORAKHPUR PLANT

Electricity MWH/MT 0.498 0.525 Fuel(RiceHusk) MT/KBL 1.718 1.67



FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION AND RESEARCH AND DEVELOPMENT (R & D).

A. RESEARCH AND DEVELOPMENT1. SPECIFIC AREAS IN WHICH R&D IS CARRIED OUT

BY THE COMPANY• Development of New Generation “Green”

surfactants.• Developmentofbindersfororebeneficiation.• DevelopmentofsolventfreePourPointDepressant

forLubricants.• Development of biodegradable and user friendly

surfactantsfortextileprocessing.• Specialty Additives for Continuous Processing

(Textiles)• Alcoholproductionfromcellulose.• Development of low temperature & low dosage

demulsifiersforcrudeoilproduction.• Development of specialty surfactants for pigment

dispersionanddefoamerinpaints.• Development of Emulsifiers for newly introduced

combopesticidesforexport.• Development of emulsifier package for multi

Toxicantforagro.• Developmentofwettinganddispersingagents for

powderformulationsinpesticides.• Development of specialty chemicals for Pulp &

PaperIndustries.• AdjuvantsfortheHerbicidesformulations.• Developmentofhouseholdcleaningandpersonal

caresurfactants.• DevelopmentofnewNaturalHealthProducts(NHPs)

by Supercritical Fluid CO2 (SCF-CO2) ExtractionTechnology (Green Ginger product, Shogaol forcontrol of Cancers like Blood Leukemia underMOUschemeatUSAandalsoforMyelodysplasticSyndromes as disease caused by complete bonemarrowfailure).

• Microencapsulation of Docosahexaenoic acid isdevelopedforitsstabilityandsustainedrelease.

• Active Pharmaceuticals Ingredients (API’s) fromHerbal Sources via Solvent Extraction (GloriosaSeeds,TurmericandBetacarotenebiomass).

2. BENEFITS DERIVED AS A RESULT OF ABOVE R&D• Providing eco-friendly surfactant for premium

application.• Developed lowdosageapplication toreducingthe

loadoneffluenttreatment.• Productwithcostadvantagetocustomerwithbetter

attributes.• The green chemistry route is being explored for

efficacious use of resources and environmentalsustainability and minimizing the solvent

hazardous.• Established the new formulation block to create

valueadditiontotheproductsofSCF-CO2 process toenhancebusinessturnover.

• Better Turnover enhancement to create furtherassuranceofbusinesssustainability.

• Widened Basket of Product Folio is created forbetterpenetration in todomesticand internationalmarket.

• Obtained aWHO-cGMP drug approval for ActivePharmaceuticalIngredients(APIs).

• Given room for Capacity utilization of SCF-CO2 plant from50% to80% level (150MTperannumto308MT)byestablishingandstabilizingSCF-CO2 pumpruns.

• Developmentresearchhasenhancedtheproductioncapabilities of solvent extraction area from 200tonesto400tonesgivingthebetterutilizationplantfrom55%to70%level.

• ProductivityofThiocolchicosideisincreasedto750Kgfrom360Kgannually.

• 4NewProcesspatentswerefiledtoholdintellectualproperty rights on products Thiocolchicoside (Publishedon23rdNov2012(ApplicationNo.1450/DEL/2011A), Marigold lutein, DHA, GreenGingerShogaol).

• Createdadditionalresearchlabfacilitytostrengtheninnovations.

3. FUTURE PLAN OF ACTION• Random / block copolymers for Fibre Finish

applications.• EmulsionPolymersforCoatingApplication• Ecofriendly surfactant for Emulsion–Polymer /

Paints.• New delivery system for control release in crop

protection.• Modified polymeric surfactants for oil field and

constructionapplication.• SpecialityChemicalsforTechnicalTextiles• EcofriendlyemulsifierforCropprotection.• NewDispersantsystemforAgro,Textiles&Paper

Application• Enzyme based formulations for textile and paper

application.• Upgradation of laboratories and instrument

applicationlabs.• Designvariousnewformulationsfromtheproducts

SCF-CO2processtohavebetterbusinessproductprofileandturnoverwithcapacity fromexisting20tonesto100tones.

FORM B



• TobroadentheresearchactivitiesonvariousnewproductlikeOregano,Naturalvitamin-D(Calcitriol)

• To go for a commercial process and launch ofVinpocetinetothemarket.

• To develop challenging process methods forproduction of valuable Colchicoside &Colchicine,then convert it to Thiocolchicoside, from an in-housesourcebasedlowvalueColchicineproducedfromGloriosaseeds.

• Toconstantlyputefforts fordevelopmentofmoreeconomic and cost efficient technologies for theextraction and isolation of new Natural HealthProducts(NPHs).

• Aqueous & Solvent plant expansion to increasecapacityby800ton/annumtocaterdifferentproductfolio.

• Toconvert thealkaloidColchicine to itsglycosidebychemicalorbiotransformationfortotalutilizationandharnessingtheactiveingredientpresentintheseed.

• Toconstantlyputefforts fordevelopmentofmoreeconomic and cost efficient technologies for theextraction and isolation of new Natural HealthProducts(NPHs).

4. (i) EXPENDITURE ON R&D (Chemical, Kashipur) 2012-13 (` in Lacs) Capital 188.18 Recurring 287.26 Total 475.44 Totalexpenditureasapercentageof totalturnover 0.14%

(ii) Expenditure on R & D (Ennature Biopharma, Dehradun) 2012-13 (` in Lacs) Capital 0.00 Recurring 98.57 Total 98.57 TotalExpenditureasapercentageof totalturnover 0.029%

B) TECHNOLOGY ABSORPTION AND INNOVATION• Developmentofnewcosteffectivefeedstock(RM)

source.• Developed APEO free emulsifiers for textile

applications.• Developedlowtemperature,lowdosagedemulsifier

forcrudeoildemulsificationanddehydration.• Method development for chain distribution and

EthoxylatedproductsbyG.C./HPLC.• Developed scaling inhibitors, biocides for oil and

gasindustriesapplications.• Developednewcosteffectiveemulsifierforemulsion

explosive.

INFORMATION ABOUT IMPORTED TECHNOLOGY (IMPORTED DURING THE LAST 5 YEARS RECKONED FROM THE BEGINNING OF THE FINANCIAL YEAR) - N.A.

FOREIGN EXCHANGE EARNING AND OUTGO:(i) Activities relating to exports, initiative taken to

exports,developmentofnewexport forproductsandservicesandexportplans.

:FOBvalueoftheExportsduringtheyearwerè 1,67,473Lacs

(ii)TotalForeignExchangeused : TotalForeignExchangeusedwas`83,878Lacs(Previous year Foreign Exchange used was ` 76,370Lacs)

forandonbehalfoftheBoard

Place:NOIDA,U.P. U.S. BhartiaDated:30.05.2013 Chairman and Managing Director



ManagementDiscussion&AnalysisReport

PRODUCTSINDIA GLYCOLS LIMITED is one of the leadingmanufacturer of Glycols, Ethylene Oxide Derivatives,EthylAlcohol (Potable),NaturalGum&DerivativesandIndustrial Gases. Our belief in providing the desiredproductswiththehelpofthebesttechnologyisreflectedinourstate-of-the-artintegratedmanufacturingfacilities.Themanufacturingbuildingblocksarerepresented:-

TheCompanyhasorganiseditsbusinessintochemicals,EthylAlcoholandotherssegments.A.Chemicalsegmentscomprises:- •Glycols(MEG,DEG,TEGandHeavyGlycols) •EthyleneOxideDerivatives(EODs) •NaturalGumandDerivativesB.EthylAlcohol(Potable)andExtraNeutralAlcoholC.Others include Nutraceuticals & Herbal Extracts,

IndustrialGasesetc.Thesegmentwisebusinessshareisindicatedasfollows:-

Segment Sales Value 2012-13 (Rs. In Million)

(Domestic + Exports)

% Share

A.Chemicals 30,906 80%

B.EthylAlcohol(Potable)

6,718 18%

C.Others 741 2%

Total 38,366 100%

CHEMICAL SEGMENTSales in the Chemical segment has increased from` 23,394millioninFY2011-12to` 30,906millioninFY2012-13.This segment is highest contributor at 80% tothetotalturnoveroftheCompany.Increaseinvaluehasprimarily come from Exports of Natural Gum products,Ethylene Oxide Derivatives and Bio-MEG. CompanyhasregulateditsDomesticsalesasitwasnotfeasibletomarketMEGusingexpensiveEthanol.

2010-11 2011-12 2012-13

ChemicalsSalesValue (` inMillion)

13,456 23,394 30,906

GLYCOLS AND EODSalesofGlycols (MEG,DEG,TEGandHeavyGlycols)hasincreasedfrom̀ 5,921millioninFY2011-12tò 6,934millioninFY2012-13.Inviewofhigherfeedstockcost,thefocushasbeenonsalesofBio-MEGforexports.SalesunderEthyleneOxideDerivatives(EOD)businesshas increased from ` 8,896 million in FY 2011-12 to` 10,052millionin2012-13.EODbusinesshasaccountedfor33%ofcompany’srevenuesfromChemicalbusinessandishighestcontributorat26%tothetotalrevenueoftheCompany.EODbusinesshaswitnessedimprovementinprofitabilityduetohigherpricesofEthyleneandEthyleneOxideintheworldmarkets.TheEthyleneOxideDerivativesproducedbythecompanyareusedbydiverseindustrieslikeTextile,Agrochemicals,Detergents,Pharmaceuticals&PersonalCare,OilFieldandAutomotiveindustry,paint&coatingindustry,etc.Thecompanyaimstoincreaseitsbusinessbydevelopingnew products and applications especially in areas oftextile chemicals, oil field chemicals, paper chemicals,homecare&personalcareapplications.ThethrustwouldbeinlinewiththestrategytomaximiseEODsbusinessinviewofincreasingtheusageofEOforEODerivativesforimprovedmargins.

BIO-ETHOXYLATESWe have initiated promotion of Bio-Ethoxylates in theinternational market which is gaining acceptability andcan be a good opportunity for better realisation in thenichemarketsegments.

NATURAL GUMThe performance of Natural Gums Division had beenoverwhelming during the year under review. Companyhascarvedanicheinworldmarketandnowisknownastheconsistentqualitymanufactureramongthecustomersworldover.

2010-11 2011-12 2012-13

13,456

35,000

30,000

25,000

20,000

15,000

10,000

5,000

-

23,394

30,906



SalesunderNaturalGumbusinesshasincreasedfrom̀ 3,956million in FY 2011-12 to ` 7,424millionin2012-13.NaturalGum business has accounted for 24% of Company’srevenuesfromChemicalbusinessandcontributedat19%tothetotalrevenueoftheCompany.

OPPORTUNITIES & CHALLENGESCompany in its long term strategy, is shifting fromcommodity to niche markets and speciality products and woulddivertEOmoleculeforBio-MEGandEODerivative/Speciality products which will give us much betterreturns. We are promoting our Glycols as Bio/ GreenMEG to potential customers interested inmeeting theirobjectiveof usingenvironment friendly chemicalsmadefrom natural renewable resources. We have convertedthisconcept intoagoodbusinessopportunitywhichwillenable full capacity utilisation with better realisation.Moreover,thenichemarketsofBIOMEGinthepackagedwater,automobile,personalcare&cosmeticsaregoingtogiveusbettermargins.

ETHYL ALCOHOL (POTABLE) AND EXTRA NEUTRAL ALCOHOLIn theEthylAlcohol (Potab

Twenty-Ninth Annual Report 2012-13 - India Glycols Limited...4 | 29th Annual Report 2012-13 India...

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