5

PANAMA PETROCHEM LIMITED
33 rd ANNUAL REPORT 2014-15
Board of Directors
Corporate Office
Mr. Amirali E. Rayani
Chairman
401, Aza House, 24, Turner Road
Mr. Amin A. Rayani
Managing Director & CEO
Bandra (W), Mumbai 400 050, India
Mr. Samir A. Rayani
Whole-time Director
Tel: 91-22-42177777
Mr. Dilip S. Phatarphekar Independent Director
Fax: 91-22-42177788
Mr. Madan Mohan Jain
Independent Director
Mr. Mukesh Mehta
Independent Director
Ms. Nargis Mirza Kabani
Additional Director (independent)
Website: panamapetro.com
E-mail: ho@panamapetro.com
Registered Office
Plot No: 3303, G.I.D.C. Estate,
Company Secretary &
Ankleshwar 393 002, Gujarat, India
Compliance Officer
Tel: 91-2646-221 068,
Ms. Gayatri Sharma
Fax: 91-2646-250281
Corporate Identification Number
Auditors
(CIN) : L23209GJ1982PLC005062
M/S. Bhuta Shah & Co.
Email: ankl@panamapetro.com
Chartered Accountants, Mumbai, India
Plants
Bankers
Ankleshwar, Daman, Taloja, & Dahej
Indian Bank
IDBI Bank Limited
Citibank N.A.
Registrar & Share Transfer Agents
Standard Chartered Bank
Bigshare Services Private Limited
DBS Bank Limited
E -2, Ansa Industrial Estate,
Yes Bank Limited
Sakinaka, Saki - Vihar Road,
D C B Bank Limited
Andheri (E), Mumbai 400 072
HDFC Bank Limited
Maharashtra, India.
Tel: 91-22-2847 3474, / 4043 0200
Listed at
FAX: 91-22-2847 5207.
BSE Limited
E-mail: info@bigshareonline.com
National Stock Exchange of India Limited

Luxembourg Stock Exchange (GDRs)
Contents
Page No.
Notice.................................................................................................
Directors Report..................................................................................
11
Management Discussion & Analysis Report . ..........................................
36
Corporate Governance Report...............................................................
39
CEO Report ........................................................................................
52
Auditors Report & Annexure.................................................................
53
Balance Sheet......................................................................................
56
Profit & Loss Accounts..........................................................................
57
Notes of Account..................................................................................
58
Cash Flow Statement............................................................................
82
Consolidated Independent Auditors Report ...........................................
84
Consolidated Balance Sheet..................................................................
88
Consolidated Profit & Loss Accounts......................................................
89
Consolidated Notes to Account..............................................................
90
Consolidated Cash Flow Statement........................................................
115
Proxy Form..........................................................................................
119
NOTICE
CIN : L23209GJ1982PLC005062
Notice is hereby given that the THIRTY THIRD
ANNUAL GENERAL MEETING of the Members of PANAMA
PETROCHEM LIMITED will be held on Monday, September 14, 2015 at 11:00 A.M. at the Conference Hall of the Registered
Office of the Company at Plot No. 3303, G.I.D.C. Estate, Ankleshwar, Gujarat 393 002 to transact the following business:
Ordinary Business:
1.
To receive, consider and adopt the Audited Financial Statements for the financial year ended March 31, 2015 together
with the Reports of the Board of Directors & Auditors thereon.
2.
To receive, consider and adopt the Audited Consolidated Financial Statements for the financial year ended March 31,
2015 together with the Report of the Auditors thereon.
3.
To declare dividend on Equity Shares.
4.
To appoint a Director in place of Mr. Samir Rayani (DIN 00002674), who retires by rotation at this Annual General
Meeting and being eligible, offers himself for re-appointment.
5.
To appoint Auditors and to fix their remuneration and in this regard to consider and, if thought fit, to pass, the following
resolution as an Ordinary Resolution:
RESOLVED THAT pursuant to Section 139(1) of the Companies Act, 2013, and the Rules made thereunder, and
pursuant to the recommendation of the Audit Committee, M/s Bhuta Shah & Co., Chartered Accountants, Mumbai, be
and are hereby appointed as Statutory Auditors of the Company to hold office for the period of 5 (Five) years from the
conclusion of this Annual General Meeting (AGM) until the conclusion of the Annual General Meeting to be held in the
year 2020, to examine and audit the accounts of the Company at such remuneration as may be mutually agreed upon
between the Board of Directors of the Company and the Auditors.
FURTHER RESOLVED THAT the appointment of M/s Bhuta Shah & Co., Chartered Accountants, Mumbai for the
period of 5 (Five) years made at the ensuing Annual General Meeting shall be subject to ratification at every subsequent
Annual General Meeting held after this Annual General Meeting .
Special Business:
6.
To appoint Ms. Nargis Mirza Kabani (DIN: 07047788) as an Independent Director and in this regard to consider and, if
thought fit, to pass, the following resolution as an Ordinary Resolution
RESOLVED THAT pursuant to the provisions of Sections 149, 152 read with Schedule IV and all other applicable
provisions of the Companies Act, 2013 and the Companies (Appointment and Qualification of Directors) Rules, 2014
(including any statutory modification(s) or re-enactment thereof for the time being in force) and Clause 49 of the Listing
Agreement, Ms. Nargis Mirza Kabani (DIN: 07047788), who was appointed as an Additional Director by the Board of
Directors of the Company w.e.f February 13, 2015 and who holds office till the date of this AGM, in respect of whom
the Company has received a notice in writing under Section 160 of the Companies Act, 2013 from a member proposing
her candidature for the office of Director, be and is hereby appointed as an Independent Director of the Company, not
liable to retire by rotation and to hold office for 5 (five) consecutive years.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all acts and
take all such steps as may be necessary, proper or expedient to give effect to this resolution.
7.
To approve the remuneration of the Cost Auditor for the financial year ending March 31, 2016 and in this regard, to
consider and if thought fit, to pass the following resolution as an Ordinary Resolution:
RESOLVED THAT pursuant to Section 148 and other applicable provisions, if any, of the Companies Act, 2013 and
The Companies (Audit and Auditors) Rules, 2014, as amended from time to time, the Company hereby ratifies the
remuneration of ` 1.75 lakhs (Rupees one lakh seventy five thousand only) plus out-of-pocket expenses payable to
Mr. Girikrishna S. Maniar, who is appointed as the Cost Auditor of the Company to conduct the audit of the cost records
of the Company for the financial year ending March 31, 2016.
8.
To approve and ratify Related Party Transaction and in this regard, to consider and if thought fit, to pass the following
resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Section 188 and other applicable provisions, if any, of the Companies
Act, 2013 (the Companies Act) read with the applicable provisions of the Companies (Meetings of Board and its
Powers) Rules, 2014 and in terms of the applicable provisions of the Listing Agreement executed with the Stock
Exchanges (including any amendment, modification or re-enactment thereof), and all other provisions of applicable
laws/rules, consent of the Company be and is hereby accorded to the Board of Directors of the Company {hereinafter
referred to as the Board, which term shall include any committee constituted by the Board of Directors of the Company
or any person(s) authorized by the Board to exercise the powers conferred on the Board of Directors of the Company
by this Resolution} to enter into related party transactions with respect to providing security (ies)/create charges/
mortgages on movable and immovable property / providing guarantee(s) by M/s Anirudh Distributors Pvt. Ltd. (a related
party) in connection with the amount borrowed / credit facilities availed by Panama Petrochem Limited (the company)
from Companies banker, upto an amount of ` 500.00 Crore (Rupees five hundred crore only)

9.
To approve creation of charge on the assets of wholly owned subsidiary and in this regard, to consider and if thought
fit, to pass the following resolution as a Special Resolution:
RESOLVED THAT in terms of Clause 49 and other applicable provisions of the Listing Agreement executed with
the Stock Exchanges (including any amendment, modification or re-enactment thereof), and all other provisions of
applicable laws/rules, if any, consent of the Company be and is hereby accorded to create such charges, mortgages
and hypothecations, on such movable and immovable properties of Panol Industries RMC FZE( material subsidiary),
both present and future, and in such manner as the Board of Panol Industries RMC FZE may deem fit, in favour of
Banks, Financial Institutions, Insurance Companies, other lending/ investing agencies or bodies/ trustees for holders of
debentures/ bonds which may be issued to or subscribed to by all or any of the Banks, Financial Institutions, Insurance
Companies, other lending/ investing agencies or any other person(s)/ bodies corporate by way of private placement
or otherwise (hereinafter collectively referred to as Lenders), provided that the total amount of loans together with
interest thereon, additional interest, compound interest, liquidated damages, commitment charges, or on redemption,
costs, charges, expenses and all other moneys payable by the Panol Industries RMC FZE in respect of the said loans,
for which such charges, mortgages or hypothecations are created, shall not, at any time exceed the limit of USD 70
Million.
Notes:
1.
A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote
instead of him and a proxy need not be a member of the company. Proxies, in order to be effective, must be
received at the Companys Registered Office not less than 48 hours before the Meeting. Proxies submitted on behalf
of companies, societies, partnership firms, etc. must be supported by appropriate resolution/ authority, as applicable,
issued on behalf of the nominating organization. Members are requested to note that a person can act as a proxy on
behalf of members not exceeding 50 and holding in the aggregate not more than 10% of the total share capital of the
Company carrying voting rights. In case a proxy is proposed to be appointed by a Member holding more than 10% of
the total share capital of the Company carrying voting rights, then such proxy shall not act as a proxy for any other
person or shareholder.
2.
Corporate Members: : Corporate Members intending to send their authorised representatives are requested to send
a duly certified copy of the Board Resolution authorizing the representatives to attend and vote at the Annual General
Meeting.
3.
A Statement pursuant to Section 102(1) of the Companies Act, 2013, relating to the Special Business to be transacted
at the Meeting is annexed hereto.
4.
Members/ Proxies should bring the enclosed attendance Slip duly filled in, for attending the Annual General Meeting,
along with their copy of the Annual Report. Copies of the Annual Report will not be distributed at the Meeting.
5.
The Register of Members and Share Transfer Books of the Company will remain closed from Thursday the 10th day of
September 2015 to Monday the 14th day of September 2015 (both days inclusive).
6.
Payment of dividend as recommended by the Board of Directors, if declared at the Annual General Meeting will be
payable to those Shareholders whose names stand on the Register of Members of the Company as on the closing
of September 9, 2015. In respect of shares held in the electronic form, the dividend will be payable on the basis of
beneficial ownership furnished by National Securities Depository Limited and Central Depository Services (India) Limited
for this purpose. Dividend will be paid within two weeks from the date of declaration of dividend.
7.
Members are requested to notify any change in their address/ mandate/bank details immediately to the share transfer
Agent of the Company- M/s Bigshare Services Pvt. Ltd.
8.
To avoid loss of dividend warrants in transit and undue delay in receipt of dividend warrants, the Company has provided
National Electronic Clearing Service (NECS) facility to the Members for remittance of dividend. NECS facility is available
at locations identified by Reserve Bank of India from time to time. Members holding shares in physical form and desirous
of availing this facility are requested to provide their latest bank account details (Core Banking Solutions Enabled
Account Number, 9 digit MICR and 11 digit IFS Code), along with their Folio Number, to the Companys Share Registrars
and Transfer Agents. Members holding shares in electronic form are requested to provide the details to their respective
Depository Participants.

9.
Members holding shares in physical form are requested to advise any change of address immediately to the Companys
Share Registrars and Transfer Agents. Members holding shares in electronic form must send the advice about change in
address to their respective Depository Participant only and not to the Company or the Companys Share Registrars and
Transfer Agents.
10. Members holding shares in electronic form are hereby informed that bank particulars registered against their respective
depository accounts will be used by the Company for payment of dividend. The Company or its Registrars cannot act on
any request received directly from the Members holding shares in electronic form for any change of bank particulars or
bank mandates. Such changes are to be advised only to the Depository Participant of the Members.
11. Members holding shares in single name and physical form are advised to make nomination in respect of their shareholding
in the Company. The nomination form can be downloaded from the Companys website, www.panamapetro.com
12. The Securities and Exchange Board of India (SEBl) has mandated the submission of Permanent Account Number (PAN)
by every participant in the securities market. Members holding shares in electronic form are, therefore, requested
to submit their PAN details to their respective Depository Participants. Members holding shares in physical form are
requested to submit their PAN details to the Share Registrars and Transfer Agents.
13. Members holding shares in physical form are requested to consider converting their holdings to dematerialized form
to eliminate risks associated with physical shares and for ease in portfolio management. Members can contact the
Companys Share Registrars and Transfer Agents for assistance in this regard.
14. All documents referred to in the Notice are open for inspection at the Registered Office of the Company on all workings
days except Saturdays and Public Holidays between 11.00 A.M. and 1.00 P.M. up to the date of the Annual General
Meeting.
15. Members desirous of obtaining any information as regards to the accounts and operations of the Company are requested
to write at least one week before the meeting so that the same could be complied in advance.
16. Members who have not registered their e-mail addresses so far, are requested to register their e-mail
address for receiving all communication including Annual Report, Notices, Circulars, etc. from the
Company electronically.
17. In terms of and in compliance with the provisions of Section 108 of the Companies Act, 2013, read with Rule 20
of the Companies (Management and Administration) Rules, 2014 as amended by the Companies (Management and
Administration) Amendment Rules, 2015, and Clause 35B of the Listing Agreement, the Company is pleased to offer
remote e-voting facility as an alternate to all its Members to enable them to cast their vote electronically instead of
casting the vote at the Meeting. The Members who have cast their votes by remote e-voting may participate in the
Meeting even after exercising their right to vote through remote e-voting but shall not be allowed to cast vote again
at the Meeting. For this purpose, the Company has entered into an agreement with CDSL for facilitating e-voting to
enable the Shareholders to cast their votes electronically. The Company is also providing facility for voting by Ballot at
the Annual General Meeting apart from providing remote e-voting facility for all those members who are present at the
general meeting but have not cast their votes by availing the remote e-voting facility.
18. The remote e-voting facility shall be opened from, Thursday 10, September 2015 at 9.00 a.m. to Sunday, September 13,
2015 till 5.00 p.m., both days inclusive. The remote e-voting facility shall not be allowed beyond 5.00 p.m., on Sunday,
September 13, 2015. During the period when facility for remote e-voting is provided, the members of the Company,
holding shares either in physical form or in dematerialized form, as on the cut-off date/entitlement date, may opt for
remote e-voting. Provided that once the vote on a resolution is cast by the member, he shall not be allowed to change
it subsequently or cast the vote again.
19. The Company has fixed Monday, September 7, 2015, as the cut off date for identifying the Shareholders for determining
the eligibility to vote by electronic means or in the Meeting by Ballot. Instructions for exercising voting rights by remote
e-voting are attached herewith and forms part of this Notice. A person whose name is recorded in the Register of
Members or in the Register of Beneficial Owners maintained by the depositories as on the cut-off/ entitlement date only
shall be entitled to avail the facility of remote e-voting as well as voting at the Annual General Meeting.
20. Any person who becomes a member of the Company after the dispatch of the Notice of the Meeting and holding shares
as on the cut-off date i.e, September 7, 2015, may obtain the User ID and Password by sending an email request to
cs@panamapetro.com. Members may also send a request to Ms. Gayatri Sharma, Company Secretary, by writing to her
at, 401, Aza House, 24 Turner Road, Bandra (w), Mumbai, 400050.
21. The Voting Rights will be reckoned on the paid-up value of shares registered in the name of shareholders on Monday,
September 7, 2015, the cut-off date/entitlement date for identifying the Shareholders for determining the eligibility to
vote by electronic means or at the Meeting by Ballot
22. The Notice of the Meeting is being placed on the website of the Company viz., www.panamapetro.com and on the
website of CDSL viz., www.cdslindia.com.
23. Mr. Milind Nirkhe, Company Secretary in Whole Time Practice, (CP No. 9255) has been appointed as a Scrutinizer for
conducting the voting by Ballot at the Meeting and remote e-voting process in a fair and transparent manner.
24. The Scrutinizer shall, immediately after the conclusion of voting at the Meeting, first count the votes cast by Ballot at the
Meeting, thereafter unblock the votes cast through remote e-voting in the manner provided in the Rules and make, not
later than 3 days of conclusion of the Meeting, consolidated Scrutinizers Report of remote e-voting and voting by Ballot
at the Meeting, of the total votes cast in favour or against, if any, to the Chairman of the Meeting and the Chairman or a
person as may be authorized by him in writing shall declare the result of the voting forthwith and all the resolutions as
mentioned in the Notice of the Meeting shall be deemed to be passed on the date of the Meeting. The results declared
alongwith the report of the Scrutinizer shall be placed on the website of the Company at www.panamapetro.com and
on the website of CDSL at www.cdslindia.com, immediately after the results are declared by the Chairman.
25. The instructions for members for voting electronically are as under:
The voting period begins on Thursday 10, September 2015 at 9.00 a.m. and ends on Sunday, September 13, 2015 till
5.00 p.m. During this period shareholders of the Company, holding shares either in physical form or in dematerialized
form, as on the cut-off date, September 7, 2015, may cast their vote electronically. The e-voting module shall be
disabled by CDSL for voting thereafter.
A. In case of members receiving e-mail:

(i)
Log on to the e-voting website www.evotingindia.com
(ii)
Click on Shareholders tab.
(iii)
Now, select the COMPANY NAME from the drop down menu and click on SUBMIT
(iv)
Now Enter your User ID

a.
For CDSL: 16 digits beneficiary ID,
b.
For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
c.
Members holding shares in Physical Form should enter Folio Number registered with the Company.
(v)
Next enter the Image Verification as displayed and Click on Login.
(vi)
If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an
earlier voting of any company, then your existing password is to be used.
(vii) If you are a first time user follow the steps given below:
For Members holding shares in Demat Form and Physical Form
PAN
Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both
demat shareholders as well as physical shareholders)
Members who have not updated their PAN with the Company/Depository Participant are requested to use the first two letters of their name and the 8 digits of the sequence number
(refer serial no. printed on the name and address sticker/mail) in the PAN field.
In case the sequence number is less than 8 digits enter the applicable number of 0s before
the number after the first two characters of the name in CAPITAL letters. Eg. If your name is
Ramesh Kumar with serial number 1 then enter RA00000001 in the PAN field.
DOB
Enter the Date of Birth as recorded in your demat account or in the company records for the said
demat account or folio in dd/mm/yyyy format.
Dividend
Bank
Details
Enter the Dividend Bank Details as recorded in your demat account or in the company records for
the said demat account or folio.
Please enter the DOB or Dividend Bank Details in order to login. If the details are not recorded
with the depository or company please enter the member id / folio number in the Dividend
Bank details field.
(viii) After entering these details appropriately, click on SUBMIT tab.

(ix)
Members holding shares in physical form will then reach directly the Company selection screen. However,
members holding shares in demat form will now reach Password Creation menu wherein they are required
to mandatorily enter their login password in the new password field. Kindly note that this password is to be
also used by the demat holders for voting for resolutions of any other company on which they are eligible
to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not
to share your password with any other person and take utmost care to keep your password confidential.
(x)
For Members holding shares in physical form, the details can be used only for e-voting on the resolutions
contained in this Notice.

(xi)
Click on the EVSN for the relevant <Company Name> on which you choose to vote.
(xii) On the voting page, you will see RESOLUTION DESCRIPTION and against the same the option YES/
NO for voting. Select the option YES or NO as desired. The option YES implies that you assent to the
Resolution and option NO implies that you dissent to the Resolution.
(xiii) Click on the RESOLUTIONS FILE LINK if you wish to view the entire Resolution details.
(xiv) After selecting the resolution you have decided to vote on, click on SUBMIT. A confirmation box will be
displayed. If you wish to confirm your vote, click on OK, else to change your vote, click on CANCEL and
accordingly modify your vote.
(xv) Once you CONFIRM your vote on the resolution, you will not be allowed to modify your vote.
(xvi) You can also take out print of the voting done by you by clicking on Click here to print option on the
Voting page.
(xvii) If Demat account holder has forgotten the changed password then Enter the User ID and the image
verification code and click on Forgot Password & enter the details as prompted by the system.
B.
Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) are required to log on to
https://www.evotingindia.com and register themselves as Corporates.
They should submit a scanned copy of the Registration Form bearing the stamp and sign of the
entity to helpdesk.evoting@cdslindia.com.
After receiving the login details they have to create a user who would be able to link the account(s)
which they wish to vote on.
The list of accounts should be mailed to helpdesk.evoting@cdslindia.com and on approval of the

accounts they would be able to cast their vote.
They should upload a scanned copy of the Board Resolution and Power of Attorney (POA) which
they have issued in favour of the Custodian, if any, in PDF format in the system for the scrutinizer
to verify the same.
In case of members receiving the physical copy:

(a)
Please follow all steps from sl. no. (i) to sl. no. (xvii) above to cast vote.
(b)
In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked
Questions (FAQs) and e-voting manual available at www.evotingindia.com under help section or
write an email to helpdesk.evoting@cdslindia.com.
By Order of the Board of Directors
For Panama Petrochem Ltd
Date : July 30, 2015

Place : Mumbai
Gayatri Sharma
Company Secretary
Registered Office:
Plot No. 3303, G.I.D.C. Estate
Ankleshwar - 393 002, Gujarat
STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 (the Act)
The following Statement sets out all material facts relating to the Special Business mentioned in the accompanying Notice:
Item No. 6
As per the provisions of Section 149 of the Companies Act 2013 (Act), and amended Clause 49 of the Listing Agreement,
the Company should have at least one Woman Director. The Board of Directors in its meeting held on February 13, 2015
appointed, Ms. Nargis Mirza Kabani as an Additional Director w.e.f from February 13, 2015.
The Company has received a notice in writing from a member alongwith the deposit of requisite amount under Section 160 of
the Act proposing the candidature of Ms. Nargis Mirza Kabani for the office of Director of the Company.
Ms. Nargis Mirza Kabani is not disqualified from being appointed as a Director in terms of Section 164 of the Act and has given
her consent to act as a Director.
Section 149 of the Act inter alia stipulates the criteria of independence .As per the said Section 149, an independent director
shall not be included in the total number of directors for retirement by rotation.
The Company has received a declaration from Ms. Nargis Mirza Kabani that she meets with the criteria of independence as
prescribed both under sub-section (6) of Section 149 of the Act and under Clause 49 of the Listing Agreement.
In the opinion of the Board, Ms. Nargis Mirza Kabani fulfills the conditions for her appointment as an Independent Director
as specified in the Act and rules made thereunder and the Listing Agreement. Ms. Nargis Mirza Kabani is an independent of
the management.
Brief resume of Ms. Nargis Mirza Kabani , nature of her expertise in specific functional areas and names of companies in which
she holds directorships and memberships / chairmanships of Board Committees and shareholding, if any, as stipulated under
Clause 49 of the Listing Agreement with the Stock Exchanges, are provided in the notice convening this meeting.
Keeping in view her vast expertise and knowledge, it will be in the interest of the Company that Ms. Nargis Mirza Kabani is
appointed as an Independent Director.
Save and except Ms. Nargis Mirza Kabani and her relatives, to the extent of their shareholding interest, if any, in the Company,
none of the other Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or
interested, financially or otherwise, in the resolution set out at Item No. 6 of the Notice.
The Board commends the Ordinary Resolution set out at Item 6 of the Notice for approval by the shareholders.
Item No. 7
The Board, on the recommendation of the Audit Committee, has approved the appointment of the Mr. Girikrishna S. Maniar
as the Cost Auditor to conduct the audit of the cost records of the Company for the financial year ending March 31, 2016 on
remuneration of ` 1.75 Lac.( Rupees one lakh seventy five thousand only) plus out of pocket expenses , if any.
In accordance with the provisions of Section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014, the
remuneration payable to the Cost Auditors has to be ratified by the shareholders of the Company.
Accordingly, consent of the members is sought for passing an Ordinary Resolution as set out at Item No. 7 of the Notice for
ratification of the remuneration payable to the Cost Auditors for the financial year ending March 31, 2015.
None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or interested,
financially or otherwise, in the resolution set out at Item No. 7 of the Notice.
The Board commends the Ordinary Resolution set out at Item No. 7 of the Notice for approval by the shareholders
Item No. 8
The revised Clause 49 of the Listing Agreement which has come into operation with effect from October 1, 2014 has prescribed
seeking of shareholders approval for material related party transactions.
Pursuant to the provisions of revised Clause 49 of the Equity Listing Agreement, the contracts / arrangements / transactions
which are material in nature require the approval of the unrelated shareholders of the Company through special resolution.
The proposed transaction put up for approval is in the ordinary course of business and at arms length basis. Pursuant to the
provisions of revised Clause 49 of the Equity Listing Agreement, the following transaction is material in nature and require the
approval of the unrelated shareholders of the Company by a special resolution:
Any other
information
relevant or
important for
the members to
take a
decision on
the proposed
resolution
Name of the
related party
Nature of
Name of Director
relationship
or Key Managerial
Personnel (KMP) who
is related , if any,
Nature, material terms, monetary

value and particulars of the contract or
arrangement;
M/s Anirudh
Distributors
Private Limited
Mr. Amirali E. Rayani, Mr. Amirali E.

Mr. Amin A. Rayani Rayani, Mr. Amin
and Mr. Samir Rayani A. Rayani and
Mr. Samir Rayani
along with other
promoters hold
100%
shares
in M/s Anirudh
Distributors Private Limited.
M/s Anirudh Distributors Private Limited, None.

has created charge on its property
and given Corporate Guarantee to the
bankers of Panama Petrochem Limited,
against the credit facilities availed
by Panama Petrochem Limited. The
Company now propose to increase the
amount of charge and guarantee to be
provided by Anirudh Distributors Pvt. Ltd.
upto a maximum amount of ` 500 Crore
(Rs. five hundred crore only.)
The above transaction was approved by the Audit Committee and recommended by the Board of Directors to the unrelated
shareholders of the Company for their approval.
Mr. Amirali E. Rayani, Mr. Amin A. Rayani and Mr. Samir Rayani are interested in the resolution, and their other relatives may
be deemed to be interested, in the resolution set out at Item no. 8 to the extent of their shareholding interest, if any, in the
Company.
Except above, none of the other Directors, Key Managerial Personnel of the Company or their respective relatives are in any
way concerned or interested in the said Resolution. The Board commends the Special Resolution set out at Item No. 8 of the
Notice for approval by the shareholders
Item no. 9
The revised Clause 49 of the Listing Agreement has mandated shareholders approval under Clause 49(V) (G) for Selling,
disposing and leasing of assets amounting to more than twenty percent of the assets of the material subsidiary on an
aggregate basis during a financial year unless the sale/disposal/lease is made under a scheme of arrangement duly approved
by a Court/Tribunal.
Panol Industries RMC FZE is a material subsidiary of Panama Petrochem Limited viz ; a subsidiary, whose income or net worth
(i.e. paid up capital and free reserves) exceeds 20% of the consolidated income or net worth respectively, of the listed holding
company and its subsidiaries in the immediately preceding accounting year. Thus, to create charge/ mortgage/ hypothecation
on Panol Industries RMC FZE assets, both present and future, amounting to more than twenty percent of the assets, in favour
of the lenders/ trustees for the holders of debentures/ bonds, etc. to secure the repayment of moneys, which Panol Industries
RMC FZE may borrow upto a maximum amount of USD 70 Million, approval of shareholders by way of special resolution is
required .
Mr. Amin A. Rayani and Mr. Samir Rayani are interested in the resolution, and their other relatives may be deemed to be
interested, in the resolution set out at Item no. 9 to the extent of their interest, if any.
Except above, none of the other Directors, Key Managerial Personnel of the Company or their respective relatives are in any
way concerned or interested in the said Resolution. The Board commends the Special Resolution set out at Item No. 9 of the
Notice for approval by the shareholders
Place : Mumbai
Gayatri Sharma
Company Secretary
Registered Office:
Plot No. 3303, G.I.D.C. Estate
Details of Directors seeking Appointment/ Re-appointment at the Annual General Meeting

Name of Director
Samir A. Rayani
Date of Birth
19.12.1975
14.05.1952
Date of Appointment
01.12.2000
13.02.2015
Expertise in specific
functional area
Mr. Samir Rayani holds a bachelors degree in

engineering (Chemical) from Mumbai University.
He has been associated as a Whole - time
Director overseeing the administrative aspects
of the Company. He has a wide knowledge
of production and marketing of Petroleum
Products.
Ms. Nargis Mirza Kabani holds a Bachelors

degree in arts from Mumbai University. She has
vast experience of more than 25 years in the
field womens development, health, education,
strategic planning and human resource
development.
Qualification
Bachelors degree in engineering(chemical)
Bachelors degree in Arts, diploma in primary

health care, certificate course in social work
and certificate course in guidance and counseling.
Directorship held in
other Indian public
limited Companies
Nil
Nil
Chairman/ Member of
the Committee Board of
Directors of the other
Indian public limited
Companies
Nil
Nil
No. of shares held in

the Company
1092500
Nil
Disclosure of
Relationship
Mr. Samir A. Rayani is not directly related to

any Director.
Ms. Nargis Mirza Kabani is not related to any

Director.
Route Map to the venu of the AGM
10
DIRECTORS REPORT
Dear Members
Your Directors have pleasure in presenting the Thirty third Annual Report of the Company together with the Audited
Statement of Accounts for the Financial Year ended March 31, 2015.
FINANCIAL HIGHLIGHTS
Particulars
Standalone
Net Profit before Tax

Less: Provision for Taxes
Net Profit After Tax
(` In lakhs)
Consolidated
2015
2014
2015
2014
1,760.76
2,044.86
2,156.12
2,344.10
384.89
504.48
384.89
504.48
1,375.87
1,540.38
1,771.23
1,839.62
Add :Profit Brought Forward
12,120.13
11,346.82
12,419.37
11,346.82
Profit available for appropriation
13,496.00
12,887.20
14,190.60
13,186.44
(7.34)
(7.34)
Proposed Final Dividend
806.58
483.95
806.58
483.95
Dividend distribution tax
168.78
82.25
168.78
82.25
Dividend of previous year including Dividend distribution tax
Less: Transfer to Reserves

Profit Carried Forward to Balance Sheet
137.59
208.22
137.59
208.22
12,383.05
12,120.13
13,077.64
12,419.37
OPERATIONAL PERFORMANCE

Revenue from operations on a standalone basis increases by 23% to ` 72,981.94 lakhs.
Earnings before Interest, Depreciation, Tax & Amortization on a standalone basis decreased by 4% to ` 2,748.12 lakhs.
Net Profit on a standalone basis decreased by 11% to ` 1,375.87 lakhs.
The consolidated revenue from operations of the Company for the year ended March 31, 2015 was ` 80,530.79 lakhs an
increase of 27% on a Year on Year basis.
Net Profit on a consolidated basis decreased by 4% to ` 1,771.23 lakhs
The consolidated net profit of the Company for year ended March 31, 2015 was down by 4 % to ` 1,771.23 lakhs. The decline
in profit reflects a sharp fall in crude oil prices during the second half of the year.
Though the Company was able to capitalize on the market conditions through its operational excellence, higher efficiency and
well executed strategies which led to increase in consolidated revenue from operations of the Company by 27% to ` 80,530.79
lakhs.
MANAGEMENT DISCUSSION & ANALYSIS
The detailed Management Discussion & Analysis Report for the year under review, as stipulated under Clause 49 of the Listing
Agreement is presented in a separate section forming part of the Annual Report.
DIVIDEND
Your Board of Directors is pleased to recommend a dividend of 100% i.e. ` 2/- per share of ` 2 each for the year ended
March 2015 as against ` 6/- per share of ` 10 each (60%) in the previous year, considering the promising future prospects
of the Company.
The dividend will be paid to the members, whose names appear in the Register of Members of the Company as on September
9, 2015. In respect of shares held in the electronic form, the dividend will be payable on the basis of beneficial ownership
furnished by National Securities Depository Limited and Central Depository Services (India) Limited for this purpose. Dividend
will be paid within two weeks from the date of declaration of dividend.
The total outflow towards dividend on Equity Shares for the year would be ` 975.36 lakhs (including dividend tax).
TRANSFER TO RESERVES
Your Company proposes to transfer ` 137.59 lakhs to the general reserve out of the amount available for appropriation and
an amount of ` 262.92 lakhs is proposed to be retained in the statement of Profit and Loss.
11
CREDIT RATING
We are glad to announce that your Company got credit rating from one of the leading credit rating agencies CARE and is
assigned a CARE A rating to the Long Term Facilities and CARE A1 rating to the Short Term Facilities.
SUB-DIVISION OF EQUITY SHARES
In order to facilitate affordability of the Companys shares for investors at large and to enhance the liquidity of the Companys
equity shares in the stock market, the shareholders in their meeting held on September 4, 2014 approved the sub-division of
one equity share of the Company having a face value of ` 10 each into five equity shares of face value of ` 2 each. The record
date of September 22, 2014, was fixed to determine the Members eligible to receive equity shares of face value of ` 2/- each
in lieu of equity shares of face value of ` 10/- each and equity shares of face value ` 2/- each were accordingly issued to all
the Members who were holding equity shares of ` 10/- each on September 22, 2014.
Pursuant to the Sub-division of equity shares, ratio between the GDRs and the underlying Equity Shares has been revised to
that one GDR representing five underlying Equity Share of the Company to one GDR representing twenty five underlying
Equity Shares of the Company.
SHARE CAPITAL
The paid up Equity Share Capital as on March 31, 2015 was ` 806.57 lakhs. During the year under review, the Company
has not issued any shares. The Company has not issued shares with differential voting rights. It has neither issued employee
stock options nor sweat equity shares and does not have any scheme to fund its employees to purchase the shares of the
Company.
SUBSIDIARY COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS
As on March 31, 2015 your Company has only one subsidiary, Panol Industries RMC FZE.
The Consolidated Financial Statements of the Company and its subsidiary, prepared in accordance with Accounting Standard
21 issued by the Institute of Chartered Accountants of India, form part of the Annual Report and are reflected in the
Consolidated Financial Statements of the Company.
The Company has adopted a Policy for determining Material Subsidiaries in terms of Clause 49 of the Listing Agreement. The
Policy, as approved by the Board, is uploaded on the Companys website at the web link:
http://www.panamapetro.com/Subsidiary%20Policy.pdf
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company has given guarantees for its wholly owned subsidiary, Panol Industries RMC FZE., amounting to ` 2,816.59 lakhs
during the year. The Company has not made an investment and given any loan during the year.
PERFORMANCE AND FINANCIAL POSITION OF PANOL INDUSTRIES RMC FZE
Net sales of Panol Industries RMC FZE has increased from ` 4,365.26 lakhs in the previous year to ` 7,548.85 lakhs during
2014-15. Net profit during the period is ` 395.36 lakhs , as compared to a net profit of ` 299.24 crores in the previous year.
Panol Industries RMC FZE, UAE, a wholly owned subsidiary of the Company. The Company has built a brand new manufacturing
facility in Ras Al Khaimah. The plant is having a total production capacity of 30,000 MT/ year. At this new facility the Company
will manufacture petroleum specialty products to cater to the GCC & MENA regions.
The plant enjoys logistic advantage since it is situated on the port and has direct dedicated pipelines to receive and discharge
raw material and finished products directly to bulk vessels.
During the year under review, no Company has become or ceased to be a subsidiary of the Company. The Company does not
have any associate or joint venture Companies. A statement containing the salient features of the financial position of the
subsidiary companies in Form AOC.1 is annexed as Annexure A.
RELATED PARTY TRANSACTIONS
All Related Party Transactions that were entered into during the financial year were on an arms length basis, in the ordinary
course of business and were in compliance with the applicable provisions of the Companies Act, 2013 (the Act) and the Listing
Agreement. There were no materially significant Related Party Transactions made by the Company during the year.
All Related Party Transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit
Committee is obtained for the transactions which are repetitive in nature. A statement of all Related Party Transactions is
placed before the Audit Committee for its review on a quarterly basis, specifying the nature, value and terms and conditions
of the transactions.
The Company has adopted a Related Party ransactions Policy. The Policy, as approved by the Board, is uploaded on the
Companys website at the web link: http://www.panamapetro.com/RPT.pdf
Details of the transactions with Related Parties are provided in the accompanying financial statements.
12
RISK MANAGEMENT
Your Company has adopted a Risk Management Policy/ Plan in accordance with the provisions of the Companies Act, 2013
and Clause 49 of the Listing Agreement. It establishes various levels of accountability and overview within the Company, while
vesting identified managers with responsibility for each significant risk.
The Company has laid down procedures to inform the Audit Committee as well as the Board of Directors about risk assessment
and management procedures and status.
This risk management process covers risk identification, assessment, analysis and mitigation. Incorporating sustainability in the
process also helps to align potential exposures with the risk appetite and highlights risks associated with chosen strategies.
DIRECTORS
Your Companys Board comprises of 7 Directors with considerable experience in their respective fields. Of these 3 are Executive
Directors and 4 Non Executive (Independent) Directors. The Chairman of the Board is an Executive Director.
APPOINTMENT OF DIRECTORS
In accordance with the provisions of the Companies Act, 2013 and the Companys Articles of Association, Mr. Samir Rayani,
Director retires by rotation and being eligible offer himself for re-appointment. Directors recommend his re-appointment.
At the Annual General Meeting of the Company held on September 4, 2014, the Members had approved the appointment of
Mr. Mukesh Mehta, Mr. Dilip Sobhag Phatarphekar and Mr. Madan Mohan Jain as Independent Directors for a term of five
years.
The members have also re-appointed Mr. Amirali E. Rayani as a whole-time director designated as Chairman, and Mr. Samir
Rayani as a Whole-time Directors designated as Executive Director and Mr. Amin A. Rayani as a Managing Director & CEO.
The Company has received declarations from all the Independent Directors of the Company confirming that they meet with
the criteria of Independence as prescribed both under sub-section(6) of Section 149 of the Companies Act, 2013 and Clause
49 of the Listing Agreement.
In the opinion of the Board, they fulfill the conditions of independence as specified in the Act and the Rules made there under
and are independent of the management.
No Director has retired or resigned during the year.
WOMAN DIRECTOR
In terms of the provisions of Section 149 of the Companies Act, 2013 and Clause 49 of the Listing Agreement, a company shall
have at least one Woman Director on the Board of the Company. Your Company has appointed Ms. Nargis Mirza Kabani as
an Additional Director on the Board w.e.f February 13, 2015, who holds office till the date of this AGM ,in respect of whom
the Company has received a notice in writing under Section 160 of the Companies Act, 2013 from a member proposing her
candidature for the office of Director. Accordingly, the approval of shareholders is being sought for her appointment as an
Independent Director of the Company.
APPOINTMENTS/RESIGNATIONS OF THE KEY MANAGERIAL PERSONNEL
Mr. Amin A. Rayani, Managing Director & CEO; Mr. Pramod Maheshwari, Chief Financial Officer and Ms. Gayatri Sharma,
Company Secretary of the Company are Key Managerial Personnel. Apart from re-appointment of Mr. Amin A. Rayani as a
Managing Director & CEO none of the Key Managerial Personnel has resigned or appointed during the year under review.
BOARD AND COMMITTEE MEETINGS
Your Companys Board of Directors met four times during the financial year under review. A calendar of Meetings is prepared
and circulated in advance to your Directors.
Audit Committee of the Company as constituted by the Board is headed by Mr. Madan Mohan Jain with Mr. Samir Rayani
and Mr. Mukesh Mehta as Members. There have not been any instances during the year when recommendations of the Audit
Committee were not accepted by the Board. All the recommendations made by the Audit Committee were accepted by the
Board.
Details of the composition of the Board and its Committees and of the Meetings held and attendance of the Directors at such
Meetings, are provided in the Corporate Governance Report. The intervening gap between the Meetings was within the period
prescribed under the Act and the Listing Agreement.
CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES AND INDEPENDENCE OF A
DIRECTOR:
The Nomination and Remuneration Committee has formulated the criteria for determining qualifications, positive attributes
and independence of Directors in terms of provisions of Section 178 (3) of the Act and Clause 49 of the Listing Agreement.
13
Independence: In accordance with the above criteria, a Director will be considered as an Independent Director if he/ she
meets with the criteria for Independent Director as laid down in the Companies Act, 2013 and Clause 49 of the Listing
Agreement.
Qualifications: A transparent Board nomination process is in place that encourages diversity of thought, experience, knowledge,
perspective, and gender. It is also ensured that the Board has an appropriate blend of functional and industry expertise. While
recommending the appointment of a Director, the Nomination and Remuneration Committee considers the manner in which
the function and domain expertise of the individual will contribute to the overall skill-domain mix of the Board.
Positive Attributes: In addition to the duties as prescribed under the Companies Act, 2013 the Directors on the Board of the
Company are also expected to demonstrate high standards of ethical behavior, strong interpersonal skills and soundness of
judgment. Independent Directors are also expected to abide by the Code for Independent Directors as outlined in Schedule
IV to the Act.
ANNUAL EVALUATION OF BOARD PERFORMANCE AND PERFORMANCE OF ITS COMMITTEES AND OF DIRECTORS:
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board had carried out
evaluation of its own performance, performance of the Directors as well as the evaluation of the working of its Committees.
The Nomination and Remuneration Committee has defined the evaluation criteria, procedure and time schedule for the
Performance Evaluation process for the Board, its Committees and Directors. The Boards functioning was evaluated on various
aspects, including inter alia degree of fulfillment of key responsibilities, Board structure and composition, establishment and
delineation of responsibilities to various Committees, effectiveness of Board processes, information and functioning.
Directors were evaluated on aspects such as attendance and contribution at Board/ Committee Meetings and guidance/
support to the management outside Board/ Committee Meetings. In addition, the Chairman was also evaluated on key aspects
of his role, including setting the strategic agenda of the Board, encouraging active engagement by all Board members and
motivating and providing guidance to the Managing Director & CEO.
Areas on which the Committees of the Board were assessed included degree of fulfillment of key responsibilities, adequacy of
Committee composition and effectiveness of meetings. The performance evaluation of the Independent Directors was carried
out by the entire Board, excluding the Director being evaluated. The performance evaluation of the Chairman and the Non
Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Board as a
whole. The Nomination and Remuneration Committee also reviewed the performance of the Board, its Committees and of the
Directors. The Chairman of the Board provided feedback to the Directors on an individual basis, as appropriate. Significant
highlights, learning and action points with respect to the evaluation were presented to the Board.
REMUNERATION POLICY
Your Company has adopted a Remuneration Policy for the Directors, Key Managerial Personnel and Senior Management ,
pursuant to the provisions of the Act and Clause 49 of the Listing Agreement.
The philosophy for remuneration of Directors, Key Managerial Personnel of the Company is based on the commitment of
fostering a culture of leadership with trust. The Remuneration Policy of the Company is aligned to this philosophy.
The Nomination and Remuneration Committee has considered the following factors while formulating the Policy:
(i)
The level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors of the
quality required to run the Company successfully;
(ii)
Relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
(iii)
Remuneration to Directors, Key Managerial Personnel and Senior Management involves a balance between fixed and
incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and
its goals.
Details of the Remuneration Policy are given in the Corporate Governance Report.
LISTING OF SHARES
Your Companys shares are listed on the BSE Limited and National Stock Exchange of India Limited. The Company has paid the
listing fees for the year 20142015. The GDRs of the Company are listed on Luxembourg Stock Exchange.
CORPORATE GOVERNANCE
Your Company has implemented all the mandatory requirements pursuant to Clause 49 of the Listing Agreement. A separate
report on Corporate Governance is given as a part of the Annual Report along with the certificate received from the Practicing
Company Secretary, M/s. Milind Nirkhe & Associates, Company Secretaries, confirming the compliance.
14
PUBLIC DEPOSITS
During the year under report, your Company did not accept any deposits from the public.
INSURANCE
Your Company has taken adequate insurance cover for all its assets.
INTERNAL FINANCIAL CONTROLS
Your Company has in place adequate internal financial controls with reference to financial statements. Your Company has
adopted the policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to
the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records and the timely preparation of reliable financial disclosures.
CORPORATE SOCIAL RESPONSIBILITY
As a socially responsible Company, your Company has a strong sense of community responsibility.
As its operations have expanded, your Company has retained a collective focus on the various areas of corporate sustainability
that impact people, environment and the society at large. Founded on the philosophy that society is not just another stakeholder
in its business, but the prime purpose of it, the Company, across its various operations is committed to making a positive
contribution.
The Board has constituted a Corporate Social Responsibility Committee headed by Mr. Mukesh Mehta as Chairman, with
Mr. Amin A. Rayani and Mr. Amirali E. Rayani as Members. The Company has adopted a Corporate Social Responsibility
(CSR) Policy in compliance with the provisions of the Companies Act ,2013. As part of its CSR initiatives, the Company has
undertaken projects in the areas of promoting health care, promoting education and setting up old age homes.
The above projects are in accordance with Schedule VII of the Act. The Company has spent ` 57.78 lakhs towards the CSR
projects during the current Financial Year 2014-15.
The average Net Profit of the Company made during the three immediately preceding financial years is `2,426.85 lakhs. Thus,
the Company requires to spend not less than ` 48.54 lakhs being the 2% of the amount.
The Annual Report on CSR activities is annexed as Annexure B.
POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE
The Company has zero tolerance for sexual harassment at workplace and has adopted a Policy on Prevention, Prohibition
and Redressal of Sexual Harassment at the Workplace, in line with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules there under. The Policy aims to provide protection
to employees at the workplace and prevent and redress complaints of sexual harassment and for matters connected or
incidental thereto, with the objective of providing a safe working environment, where employees feel secure. The Company
has also constituted an Internal Complaints Committee, to inquire into complaints of sexual harassment and recommend
appropriate action.
The Company has not received any complaint of sexual harassment during the financial year 2014-15.
TRANSFER TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the provisions of Section 205C of the Companies Act, 1956, the amounts of dividend remaining unpaid or
unclaimed for a period of seven years from the date of its transfer to the unpaid dividend account of the Company are required
to be transferred to the Investor Education and Protection Fund (IEPF) set up by the Government of India. Consequently no
claim shall lie against the Company in respect of any such amounts.
The amount of unpaid / unclaimed dividend up to the financial year 2006-2007 has been transferred to IEPF. Members who
have not yet encashed their warrant (s) for any subsequent years are requested to make their claims to the Company without
any delay.
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Company has adopted a Whistle Blower Policy, to provide a formal mechanism to the Directors and employees to report
their concerns about unethical behaviour, actual or suspected fraud or violation of the Companys Code of Conduct or ethics
policy. The Policy provides for adequate safeguards against victimization of employees who avail of the mechanism and also
provides for direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of the Company has been
denied access to the Audit Committee.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
No significant material orders have been passed by the Regulators or Courts or Tribunals which would impact the going
concern status of the Company and its future operations.
15
AUDITORS

STATUTORY AUDITOR
M/s Bhuta Shah & Co., Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General
Meeting and being eligible to offer themselves for re-appointment.
M/s Bhuta Shah & Co., have furnished a certificate, confirming that if re-appointed, their re-appointment will be in
accordance with Section 139 read with Section 141 of the Act. Pursuant to the provisions of the Act and the Rules
made there under, it is proposed to appoint M/s Bhuta Shah & Co; as the statutory auditors of the Company from the
conclusion of the forthcoming AGM till the conclusion of the 38th AGM to be held in the year 2020, subject to ratification
at every subsequent Annual General Meeting held after this Annual General Meeting.
Members are requested to consider the re-appointment of M/s Bhuta Shah & Co. and authorize the Board of Directors
to fix their remuneration.
COST AUDITOR
Based on the Audit Committee recommendation at its meeting held on May 30, 2015, Mr. Girikrishna S. Maniar,
Cost Accountant (Membership No. 8202) was re-appointed by the Board as the Cost Auditor of the Company for
conducting an audit of the cost accounting records of the Company for financial year commencing from April 1, 2015 to
March 31, 2016.
Cost Audit Report for the financial year 2014-2015 will be submitted by Cost Auditor to the Central Government within
the stipulated time period.
The Cost Audit Report for the financial year 2013-2014 was submitted to the Central Government within the stipulated
time.
Pursuant to the provisions of Section 148 of the Act read with The Companies (Audit and Auditors) Rules, 2014,
Members are requested to consider the ratification of the remuneration payable to Mr. Girikrishna S. Maniar.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Board of Directors of the Company had appointed CS. Milind Nirkhe , Practicing Company
Secretary (Proprietor), Practicing under the name & style M/S Milind Nirkhe & Associates, CP No: 2312 to undertake
the Secretarial Audit of the Company for the year ended March 31, 2015. The Secretarial Audit Report is annexed as
Annexure C.
The Auditors Report and the Secretarial Audit Report for the financial year ended March 31 , 2015 do not contain any
qualification, reservation, adverse remark or disclaimer.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

A.
Conservation of Energy:
The Company is aware of energy consumption and environmental issues related to it and is continuously making sincere
efforts towards conservation of energy. The Company is in fact engaged in the continuous process of further energy
conservation through improved operational and maintenance practices.
The Company has taken adequate actions to conserve the energy as Process time reduction by technically improved
mixing system.
(i) Steps Taken or Impact on Conservation of Energy:
In the past few years, the Company has tried to improve energy efficiency significantly by various measures. Steps
taken to conserve energy include:
1. At its Plants, the Company has carried out various actions to optimize energy consumption and reduce
losses.
2.
Energy efficient motors are being installed in order to optimize use of power.
3. In its Plants and Offices, the Company has replaced conventional light fixtures with energy efficient
fixtures.
16

(ii) Steps taken by the Company for utilizing alternate sources of Energy:
In addition to various initiatives around energy efficiencies, the Company has also focused on renewable sources
of energy. Various steps taken for utilizing alternate sources of energy.
(iii) Capital Investment on Energy Conservation Equipments:

During the year, the Company has invested in various energy conservation equipments. The equipment in which
investment was made included, various energy efficient motors. The Company has also installed power efficient
material handling and flowing system which has played role in energy saving.
The Company has technically improved its thermo packs to get better fuel efficiency and lower emission stack.
B.
Technology Absorption:
(i) Efforts made towards Technology Absorption:

Technology is a key enabler and core facilitator as one of the strategic pillars of the Company. Since inception
your Company has been at the forefront of leveraging technology to provide better products and services to its
customer.
The Company has an updated R & D Center at its Ankleshwar Plant. It is the technical centre of the Company and
has been the backbone for most of our major product breakthroughs. This Centre at Ankleshwar is fully equipped
with modern testing & analytical equipments. The Centre is operated by the team of well qualified technocrats, as
a result, the in house R& D unit of Panama has been recognized by the Ministry of Science & Technology
& the Department of Scientific and Industrial Research (DSIR). With this recognition Company will spend
more on R& D activities and get more new products which will be of better quality. It will also assist in research
for import substitution, energy conservation and control of pollution. The in-house R& D facility has enabled us to
develop new products which have resulted in the evolution of the Dahej Plant.

(ii) Benefits derived like product improvement, cost reduction, product development or import

substitution:
Technology has responded by being true strategic partner with business. The Company has derived many benefits
from R& D and technology absorption which includes product development, product improvement & effective cost
management, technology has also played a major role in ensuring high level of service delivery.
(iii) In case of imported technology (imported during the last three years reckoned from the beginning

of the financial year):
(a) the details of technology imported: The Company has not imported any technology during the last three

financial years.
(b) the year of import: Not Applicable

(c) whether the technology has been fully absorbed: Not Applicable
(d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof: Not Applicable
Expenditure on research & development
The expenditure on R& D activities incurred during the year is given hereunder:
Particulars
Amount (` In lakhs)
Capital
0.00
Revenue
39.69
Total R& D Expenditure
39.69
Total Turnover
72,981.94
Total R& D Expenditure as a Percentage of total turnover

C.
0.05
Foreign exchange earnings and outgo:

i.
Export Activities: During the year under review the Company has made Import/Export as given in (ii) below.
ii.
Foreign Exchange Earnings and Outgo:
Amount (` In lakhs)
Total Foreign Exchange Inflow
28,103.44
Total Foreign Exchange outflow
52,335.71
17
PARTICULARS OF EMPLOYEES
During the financial year under review, none of the Companys employees was in receipt of remuneration as prescribed under
Rule 5 (2) and (3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules. Hence, no particulars
are required to be disclosed in this Report.
The information required under Section 197 (12) of the Act read with Rule 5 of The Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, is annexed as Annexure D.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 92 (3) of the Act and Rule 12 (1) of The Companies (Management and Administration) Rules, 2014, the
extract of Annual Return in form MGT.9 is annexed as Annexure E.
AUDITORS REPORT
Comments made by the Statutory Auditors in the Auditors Report are self- explanatory and do not require any further
clarification.
DIRECTORS RESPONSIBILITY STATEMENT
In terms of the provisions of Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, and to the best of their knowledge
and belief and according to the information and explanations obtained by them and same as mentioned elsewhere in this
Report, the attached Annual Accounts and the Auditors Report thereon, your Directors confirm that:
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and that there are no
material departures;
(ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial
year and of the profit of the Company for that period;
(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
(iv) they have prepared the annual accounts on a going concern basis;
(v) they have laid down internal financial controls to be followed by the Company and that such internal financial controls are
adequate and are operating effectively;
(vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems
are adequate and operating effectively.
ACKNOWLEDGEMENT
We thank our Clients, Investors, Dealers, Suppliers and Bankers for their continued support during the year. We place on
record our appreciation for the contributions made by employees at all levels. Our consistent growth was made possible by
their hard work, solidarity, co-operation and support.
Place : Mumbai
Amirali E Rayani
Chairman
18
ANNEXURE A TO THE DIRECTORS REPORT

FORM AOC.1
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint
ventures [Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts)
Rules, 2014]
Part A: Subsidiaries
(` In lakhs)
1
SI. No.
Name of subsidiary
Reporting period for the subsidiary concerned, if different from the holding
company's reporting period.
Reporting currency and exchange rate as on the last date of the relevant
Financial Year in the case of foreign subsidiaries.
Share Capital
5,185.62
Reserves & Surplus
1,139.21
Panol Industries RMZ FZE, UAE

N.A
AED (AED 1 = INR 17.02)
Total Assets
8,928.06
Total liabilities
2,603.23
Investments
Nil
10
Turnover
11
Profit before taxation
7,548.85
395.36
12
Provision for taxation
13
Profit after taxation
395.36
Nil
14
Proposed Dividend
Nil
15
% of shareholding
100%
1.
Reporting period and reporting currency of the above subsidiaries is the same as that of the Company.
2.
Part B of the Annexure is not applicable as there are no associate companies/ joint ventures of the Company as on
ANNEXURE B TO THE DIRECTORS REPORT

Annual Report On Corporate Social Responsibility (CSR) Activities
1.
A brief outline of the Companys CSR Policy, including overview

of projects or programs proposed to be undertaken and a
reference to the web-link to the CSR Policy and projects or
programs.
Panamas CSR policy, which encompasses the

Companys philosophy for delineating its responsibility
as a corporate citizen and lays down the guidelines
and mechanism for undertaking socially useful
programmes for welfare & sustainable development
of the community at large. The Company has framed
its CSR Policy in compliance with the provisions of the
Companies Act, 2013 and the same is placed on the
Companys website at the web link:
http://www.panamapetro.com/CSR-policy.pdf
Overview of Activities: In line with the CSR policy
and in accordance of schedule VII of the Companies
Act, 2013 your company undertook various activities
during the year. Key initiative undertaken.
19
Setting up old age homes
Promoting health care
Promoting education
2. The Composition of the CSR Committee.
Mr. Mukesh Mehta (Chairman)

Mr. Amin A. Rayani
3. Average net profit of the Company for last three financial 2426.85 lakhs.
year.
4. Prescribed CSR Expenditure (two percent of the amount as 48.54 lakhs.
in item 3 above)
5. Details of CSR spent for the financial year:
(a) Total amount to be spent for the financial year
48.54 lakhs.
(b) Amount unspent, if any:
NIL
(c) Manner in which the amount spent during the financial year The manner in which the amount is spent is anis detailed below:
nexed.
6. In case the Company has failed to spend the two per cent N.A
of the average net profit of the last three financial years or
any part thereof, the Company shall provide the reasons for
not spending the amount in its Board report.
7. A responsibility statement of the CSR Committee that the The implementation and monitoring of CSR Policy is
implementation and monitoring of CSR Policy, is in compliance in compliance with CSR objectives and Policy of the
with CSR objectives and Policy of the company.
Company.
Amin A. Rayani
Mukesh Mehta
Chairman - CSR Committee
Annexure to CSR Report (point 5 (c) of the CSR Report)

S.
No
CSR Project
or activity
indentified
Sector in
which the
project is
covered
(clause no.
of Schedule
VII to the
Companies
Act, 2013, as
amended)
Projects or
programs
(1) Local area
or other
(2) Specify
the state and
district where
projects or
programs
were unde
taken
Fidai Girls
Educational
Institute
Clause (ii),
Promoting
education
Mumbai,
Maharashtra
Manav Seva
Samaj Kalyan
Trust
Clause
(iii),Setting
up old age
homes
Ahmedabad,
Gujarat
Prince Aly
Khan Hospital
Clause (i),
promoting
health care
Mumbai,
Maharashtra
Total
Amount
outlay
(budget)
project or
programs
wise
Amount spent Cumulative

on the projects
expendior programs
ture upto
Sub-heads:
the
(1) Direct
reporting
expenditure
period
on projects or
programs
(2) overheads
Amount
spent :
Direct or
through
implementation
agency
66,620
66,620
66,620
Direct
711,000
711,000
711,000
Direct
5,000,000
5,000,000
5,000,000
Direct
5,777,620
5,777,620
5,777,620
20
ANNEXURE C TO THE DIRCTORS REPORT

Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED March 31, 2015.
[Pursuant To Section 204(1) of the Companies Act, 2013 and Rule no.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]
To,
The Members,
Panama Petrochem Limited.
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Panama Petrochem Limited (hereinafter called the company). Secretarial Audit was conducted in
a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing
my opinion thereon.
Based on my verification of the Panama Petrochem Limiteds books, papers, minute books, forms and returns filed and other
records maintained by the company and also the information provided by the Company, its officers, agents and authorized
representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit
period covering the financial year ended on March 31, 2015 (Audit Period), complied with the statutory provisions listed
hereunder and also that the Company has proper Board-processes and compliance mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by Panama
Petrochem Limited (the Company) for the financial year ended on 31 March 2015,according to the provisions of:
(i)
The Companies Act, 2013 (the Act) and the rules made there under;
(ii)
The Securities Contracts (Regulation) Act, 1956 (SCRA) and the rules made there under;
(iii)
The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
(iv)
Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Overseas
Direct Investment;
(v)
The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(SEBI Act):a.
The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011;
b.
The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
c.
The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
(Not applicable to the Company for the audit period)
d.
The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999; (Not applicable to the Company for the audit period)
e.
The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (Not
applicable to the Company for the audit period)
f.
The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing with client;
g.
The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable to
the Company for the audit period)
h.
The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not applicable to the
Company for the audit period)
(vi)
I further report that, having regard to the compliance system prevailing in the Company and on examination of the
relevant documents and records in pursuance thereof, on test-check basis, the Company has complied with the other
Laws applicable specifically to the Company as per representation given by the Company.
I have also examined compliance with the applicable clauses of the following:
21
(i)
Secretarial Standards issued by The Institute of Company Secretaries of India (Not notified hence not applicable
to the Company during the audit period).
(ii)
The Listing Agreements entered into by the Company with Stock Exchanges. i.e BSE Limited & The National
Stock Exchange of India Limited.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. as mentioned above.
I further report that
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda
items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members views are captured and recorded as part of the minutes.
I further report that there are adequate systems and processes in the company commensurate with the size and operations
of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
I further report that during the audit period the Company has following events having a major baring on the Companies
Affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. referred to above:
Pursuance to the Special Resolutions passed by the members at the 32nd Annual General Meeting held on Thursday, September
4, 2014 at the Registered Office of the Company, the Board of Directors of the Company were authorized to borrow in excess
of aggregate of Paid up Share Capital and free Reserves of the Company to the extent of ` 800 Crores and also the Board
of Directors of the Company were authorized to mortgage and/or charge, in addition to mortgage/ charges created to the
Company in such form and manner as the Board may deem fit.
Place : Mumbai
CS.MILIND NIRKHE
FCS No: 4156
C P No.: 2312
Annexure A
To,
The Members,
Panama Petrochem Limited
Our report of even date is to be read along with this letter.
1.
Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2.
We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct
facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable
basis for our opinion.
3.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4.
Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5.
The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6.
The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the company.
CS.MILIND NIRKHE
Practising Company Secretary
Place : Mumbai
Membership No.:4156
Certificate of Practice No.:2312

22
ANNEXURE D TO THE DIRECTORS REPORT

[Pursuant to Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
1.
The ratio of the remuneration of each Director to the median remuneration of the Employees of the Company for the
financial year:
(Explanation: (i) the expression median means the numerical value separating the higher half of a population from
the lower half and the median of a finite list of numbers may be found by arranging all the observations from lowest
value to highest value and picking the middle one; (ii) if there is an even number of observations, the median shall be
the average of the two middle values)
2.
The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company
Secretary, or Manager, if any, in the financial year:
The ratio of remuneration of each Director to the Median Remuneration of all employees who were on the payroll of
the Company and the percentage increase in remuneration of the Directors during the financial year 2014-15 are given
below:
Directors
Ratio to Median
Percentage Increase in Remuneration
Mr. Amirali Rayani
15.37:1
Nil
Mr. Samir Rayani
11.53:1
Nil
Managing Directors & CEO

Mr. Amin Rayani
Ratio to Median
Percentage Increase in Remuneration
13.45:1
Nil
The percentage increase in remuneration of the Chief Financial Officer is Nil and of the Company Secretary is Nil
3.
The percentage increase in the median remuneration of employees in the financial year: Nil
4.
The number of permanent employees on the rolls of Company: 125
5.
The explanation on the relationship between average increase in remuneration and Company performance: N.A
6.
Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company: The remuneration of Key Managerial Personnel is not increased consequent to the reduction in profit of the Company by 11%.
7.
Variations in the market capitalization of the Company, price earnings ratio as at the closing date of the current financial
year and previous financial year and percentage increase over decrease in the market quotations of the shares of
the Company in comparison to the rate at which the Company came out with the last public offer in case of listed
companies:
The market capitalization of the Company as at March 31, 2015 is ` 236.73 crores, as against ` 114.53 crores as at
March 31, 2014, an increase of 106.70% during the year under review. The price earnings ratio of the Company as at
March, 31,2015 is 17.21 , as against 7.75 as at March 31, 2014. The stock price as at March 31, 2015 has increased
by 1367.5% over the last public offer (IPO in January 1995).
8.
Average percentile increase already made in the salaries of employees other than the managerial personnel in the
last financial year and its comparison with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration: There
is no increase in the salaries of employees other than the managerial personnel and managerial personnel in the last
financial year.
9.
Comparison of the each remuneration of the Key Managerial Personnel against the performance of the Company: N.A
as there is no increase in remuneration of Key Managerial Personnel
10. The key parameters for any variable components of remuneration availed by the Directors: The key parameters for the
variable component of remuneration availed by the directors are considered by the Board of Directors based on the
recommendations of the Nomination and Remuneration Committee as per the Remuneration Policy for Directors, Key
Managerial Personnel.
11. The ratio of the remuneration of the highest paid Director to that of the employees who are not Directors but receive
remuneration in excess of the highest paid Director during the year: 0.75:1, Mr. Pramod Maheshwari (CFO) is received
remuneration in excess of the highest paid Director during the year, the highest paid Director is the Chairman of the
Company.
12. Affirmation that the remuneration is as per the Remuneration Policy of the Company: It is affirmed that the remuneration
paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and Senior Management, adopted by the
Company.
23
ANNEXURE E TO THE DIRECTORS REPORT

FORM NO. MGT.9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2015
[Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12 (1)
of The Companies (Management and Administration) Rules, 2014]
I.
REGISTRATION AND OTHER DETAILS

CIN
L23209GJ1982PLC005062
Registration Date
March 9, 1982
Name of the Company
Category / Sub-Category of the Company
Public Company/ Limited by Shares
Address of the Registered Office and contact

details
Plot No. 3303, GIDC Estate ,

Ankleshwar,
Gujarat -393002
Tel: 91-2646-221 068
Fax: 91-2646-250281
Whether listed company
Yes
Name, address and contact details of Registrar & Transfer
Bigshare Services Private Limited,

E-2, Ansa Industrial Estate, Sakinaka, Saki -Vihar Road,
Andheri (E), Mumbai 400 072,Maharashtra,India.
Tel: 91-22-2847 3474, / 4043 0200
FAX: 91-22-2847 5207
mail: info@bigshareonline.com
II.
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the Company shall be stated:S.
No
Name and Description of

main products / services
Panoil
NIC Code of the

products / services
% to total turnover
of the Company
192 (Manufacture of refined
92
petroleum products)
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
S.
No
Name and Address of the

Company
Panol Industries RMC FZE
CIN/GLN
Holding/
Subsidiary/
Associate
% of
Shares
Held
Applicable
Section
N.A
Subsidiary
100
2(87)
24
25
CENTRAL / STATE
GOVERNMENT(S)
BODIES CORPORATE
FINANCIAL INSTITUTIONS
/ BANKS
ANY OTHERS (Specify)
DIRECTORS RELATIVES
GROUP COMPANIES
TRUSTS
(b)
(c)
(d)
(e)
(i)
(ii)
(iii)
SUB TOTAL
(A)(2) :
0
0
0
0
0.0000
0.0000
0.0000
0.0000
0.00
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
(e)
QUALIFIED FOREIGN
INVESTOR
0.0000
INSTITUTIONS
0.0000
1.7399
0.0000
0.0000
1.2440
0.0000
0.0000
0.0000
0.4959
(d)
48.7580
0.0000
0.0000
37.5670
0.0000
3.5749
0.0000
7.6161
(c)
19663665
15150435
1441730
3071500
% of Total
Shares
0.0000
0.0000
Total
BODIES CORPORATE
19663665
15150435
1441730
3071500
Physical
(b)
47.0181
0.0000
0.0000
36.3230
0.0000
3.5749
0.0000
7.1202
Demat
0.0000
0
18961960
14648730
1441730
2871500
% of Total
Shares
INDIVIDUAL
Total
% Change
during the
year
(a)
18961960
14648730
1441730
2871500
Physical
No. of Shares held at the end of the

year 31.03.2015
2. FOREIGN
SUB TOTAL
(A)(1) :
INDIVIDUAL / HUF
(a)
1. INDIAN
Promoter and
Promoter
Group
Demat
No. of Shares held at the beginning of the

year 01.04.2014
(i) Category-wise Share Holding
Category of Shareholders
SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
IV.

CENTRAL / STATE
GOVERNMENT(S)
VENTURE CAPITAL FUNDS
INSURANCE COMPANIES
FII'S
FOREIGN VENTURE
CAPITAL INVESTORS
QUALIFIED FOREIGN
INVESTOR
(c)
(d)
(e)
(f)
(g)
(h)
(i)
26
INDIVIDUAL
(CAPITAL UPTO TO Rs.

1 Lakh)
(CAPITAL GREATER THAN

Rs. 1 Lakh)
QUALIFIED FOREIGN
INVESTOR
TRUSTS
CLEARING MEMBER
DIRECTORS RELATIVES
EMPLOYEE
FOREIGN NATIONALS
NON RESIDENT INDIANS

(NRI)
OVERSEAS BODIES
CORPORATES
UNCLAIMED SUSPENSE
ACCOUNT
(b)
(i)
(ii)
(c)
(d)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
SUB TOTAL
(B)(2) :
BODIES CORPORATE
(a)
B 2. Noninstitutions
SUB TOTAL
(B)(1) :
MUTUAL FUNDS / UTI
FINANCIAL INSTITUTIONS
/ BANKS
(a)
(A)=(A)(1) + (A)(2)
(b)
1. INSTITUTIONS
(B) Public
shareholding
Total holding
for Promoters
and Promoter
group
8288245
383520
2130
3442690
3942575
517330
18961960
721635
698135
23500
70500
1500
69000
9009880
383520
2130
3442690
4640710
540830
70500
1500
69000
18961960
22.3409
0.0000
0.0000
0.9510
0.0000
0.0000
0.0000
0.0053
0.0000
0.0000
8.5365
11.5071
1.3410
0.1748
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0037
0.1711
47.0181
7112952
451877
18958
2749714
3420373
472030
510488
510488
19663665
684735
661235
23500
70500
1500
69000
7797687
451877
18958
2749714
4081608
495530
580988
510488
1500
69000
19663665
19.3352
0.0000
0.0000
1.1205
0.0000
0.0000
0.0000
0.0470
0.0000
0.0000
6.8182
10.1208
1.2287
1.4406
0.0000
0.0000
0.0000
1.2658
0.0000
0.0000
0.0000
0.0037
0.1711
48.7580
(3.0058)
0.0000
0.0000
0.1695
0.0000
0.0000
0.0000
0.0417
0.0000
0.0000
(1.7183)
(1.3864)
(0.1123)
1.2658
0.0000
0.0000
0.0000
1.2658
0.0000
0.0000
0.0000
0.0000
0.0000
1.7399

27
1) NAME,NUMBER OF
SHARES HELD & PERCENTAGE OF ENTITIES /
PERSONS HOLDING
MORE THAN 1% OF
THE TOTAL SHARES OF
THE COMPANY IS AS PER
ANNEXURE
792135
792135
792135
40329065
12286725
12286725
28042340
9080380
100.0000
30.4662
30.4662
0.0000
69.5338
22.5157
39573830
12286725
12286725
27287105
7623440
755235
755235
755235
40329065
12286725
12286725
28042340
8378675
100.0000
30.4662
30.4662
0.0000
69.5338
20.7758
0.0000
0.0000
0.0000
0.0000
0.0000
(1.7399)
2014. The record date for sub-division was September 22, 2014. The number of shares for the period prior to September 22, 2014 ( record date) reflects the effect of sub-division.
The shareholders of the Company have approved the sub-division of each equity shares having a face value of Rs. 10 into five equity shares having a face value of Rs. 2 each in the AGM held on November 4,
NOTES :
39536930
12286725
Grand Total
(A)+(B)+(C)
Public
(ii)
12286725
Promoter and Promoter

Group
(i)
27250205
8288245
SUB TOTAL
(C)(1) :
SHARES HELD BY CUSTODIANS
(B)=(B)(1) + (B)(2)
(a)
(C) Shares
held by Custodians and
against which
Depository
Receipts have
been issued
Total (A) +
(B) :
Total Public
Shareholding

28
MUNIRA HUSSEIN RAYANI
NABAT AMIRALI RAYANI
SALIM E RAYANI
SALIM E RAYANI
SALIM ESSABAI RAYANI
22
23
24
25
26
BEGUMBANU AKBERALI RAYANI
14
MALIKA VAZIRALI RAYANI
ARIF AMIRALI RAYANI
13
21
ARIF A RAYANI
12
ITTEFAQ ICE AND COLD STORAGE CO. PVT. LTD
AMIRALI ESSABHAI RAYANI
11
20
AMIRALI E RAYANI
10
IQBAL VAZIRALI RAYANI
AMIRALI E RAYANI
19
AMIR ESSABAI RAYANI
HUSSEIN VAZIRALI RAYANI
AMIR ESSABAI RAYANI
GULSHAN S. RAYANI
AMIR ESSABAI RAYANI
18
AMIN AMIRALI RAYANI
17
AKBARALI ESSABHAI RAYANI
CHEMINE AMIN RAYANI
CHEMINE AMIN RAYANI
15
AKBAR E RAYANI
16
Shareholders Name
Shareholding of Promoters
Sl
No
(ii)
36800
500
8567
295950
118500
106100
288346
22356
40740
19000
73014
141000
285950
210750
20900
75100
50000
23600
1200
2100
12800
191000
100
7000
158450
35000
Number of
Shares
0.4562
0.0062
0.1062
3.6692
1.4692
1.3154
3.5749
0.2772
0.5051
0.2356
0.9052
1.7481
3.5452
2.6129
0.2591
0.9311
0.6199
0.2926
0.0149
0.0260
0.1587
2.3680
0.0012
0.0868
1.9645
0.4339
% Shares of
the Company
184000
2500
42835
1479750
592500
530500
1441730
111780
203700
95000
365070
705000
1429750
1053750
104500
375500
250000
118000
6000
10500
64000
955000
500
35000
792250
175000
Number of
Shares
0.46
0.01
0.11
3.67
1.47
1.32
3.57
0.28
0.51
0.24
0.91
1.75
3.55
2.61
0.26
0.93
0.62
0.29
0.01
0.03
0.16
2.37
0.00
0.09
1.96
0.43
% Shares of
the Company
After Split
Shareholding at the beginning of the year

Before Split
% of Shares
Pledged/encumbered to
total shares
1479750
592500
530500
1441730
1111780
553700
95000
1070070
1429750
1158250
1024000
955000
1002750
Number of
Shares
0.00
0.00
0.00
3.67
1.47
1.32
3.57
2.76
1.37
0.24
0.00
2.65
3.55
2.87
0.00
2.54
0.00
0.00
0.00
0.00
0.00
2.37
0.00
0.00
2.49
0.00
% Shares of
the Company
% of Shares
Pledged/encumbered to
total shares
-0.46
-0.01
-0.11
0.00
0.00
0.00
0.00
2.48
0.87
0.00
-0.91
0.91
0.00
0.26
-0.26
1.61
-0.62
-0.29
-0.01
-0.03
-0.16
0.00
0.00
-0.09
0.52
-0.43
% Change in
shareholding
during the
year
Shareholding at the end of the year

SAPNA SAMIR RAYANI
SERENA IQBAL RAYANI
SHELINA A. RAYANI
SHELINA ARIFALI RAYANI
VAZIR ESSABAI RAYANI
VAZIRALI E RAYANI
VAZIRALI ESSABHAI RAYANI
CHEMINE AMIN RAYANI
IQBAL VAZIRALI RAYANI
31
32
33
34
35
36
37
38
39
40
41
29
INCREASE
12
32688
47.0181
2.4796
0.4116
0.1860
0.4339
0.7414
6.3819
0.5319
1.1902
0.2790
2.2374
2.7090
1.4477
0.4053
Transfer
Acquisition from Secondary Market
Reason
3792392
200000
33200
15000
35000
59800
514755
42900
96000
22500
180461
218500
116765
31-Mar-15
27-Mar-15
31-Oct-14
30-Sept-14
22-Sept-14
19-Sept-14
12-Sept-14
04-Sept-14
08-Aug-14
20-Jun-14
13-Jun-14
30-May-14
Date
18961960
1000000
166000
75000
175000
299000
2573775
214500
480000
112500
902305
1092500
583825
163440
701705
4000
10000
20000
300000
50000
2955
25000
23750
200000
43005
15495
7500
18961960
19663665
110205
10000
715000
2788275
480000
1014805
1092500
1008100
0.01
0.02
0.05
0.74
0.12
0.01
0.06
0.06
0.50
0.11
0.04
0.02
47.02
% of total shares
of the company
Share holding
Number of Shares
47.02
0.00
0.00
2.48
0.41
0.19
0.43
0.74
6.38
0.53
1.19
0.28
2.24
2.71
1.45
0.41
The number of shares for the period prior to September 22, 2014 ( record date) reflects the effect of sub-division
At the end of the year
INCREASE
INCREASE
10
11
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
At the beginning of the year
Sl.
No
(iii). Change in Promoters Shareholding
Total
SAMIR AKBARALI RAYANI
SAPNA SAMIR RAYANI
29
SALIMALI ESSABHAI RAYANI
28
30
SALIM ESSABHAI RAYANI
27
19663665
19663665
19659665
19649665
19629665
19329665
19279665
19276710
19251710
19227960
19027960
18984955
18969460
18961960
Number of Shares
0.27
0.02
-0.71
-0.41
-0.19
-0.43
-0.74
0.53
-0.53
0.00
2.24
-2.24
0.00
1.05
-0.41
48.76
48.76
48.75
48.72
48.67
47.93
47.81
47.80
47.74
47.68
47.18
47.08
47.04
47.02
% of total shares of the

company
Cumulative shareholding
during the year.
48.76
0.27
0.02
1.77
0.00
0.00
0.00
0.00
6.91
0.00
1.19
2.52
0.00
2.71
2.50
0.00

30
VINEETH ADVAI
ANIL KUMAR GOEL
A V DHARMAKRISHNAN
RAJEEV GUPTA
JEETAY INVESTMENTS PRIVATE

LIMITED
CITIBANK N.A. NEW YORK,

NYADR DEPARTMENT
Name
Sr.
No.
90000
193500
600000
165625
97095
12286725
SHARES
0.22
0.48
1.49
0.41
0.24
30.47
% of Total
Shares of company
Shareholding at the beginning
-680
-2000
-10000
-11020
-1
Sale
Sale
Sale
Sale
Sale
2-Jan-15
30-Jan-15
6-Feb-15
13-Feb-15
Sale
Sale
12-Sep-14
19-Sep-14
31-Mar-15
Sale
Sale
Sale
22-Aug-14
4-Sep-14
Sale
29-Aug-14
Sale
8-Aug-14
13-Aug-14
31-Mar-15
20-Feb-15
-21510
Sale
31-Dec-14
-37870
-18500
-38695
-21195
-55000
-14125
-8115
25
835
Purchase
Purchase
18-Jul-14
23330
10000
SHARES
-0.09
-0.05
-0.10
-0.05
-0.14
-0.04
-0.02
0.00
-0.03
-0.02
0.00
0.00
-0.05
0.00
0.00
0.06
0.02
% of Total
Shares of company
Increase/ decrease
25-Jul-14
Purchase
Purchase
13-Jun-14
Reason
30-May-14
31-Mar-15
31-Mar-15
31-Mar-15
Date
(iv) Shareholding Pattern of top ten Shareholders(other than Directors, Promoters and Holders of GDRs and ADRs)
90000
37870
56370
95065
116260
171260
185385
588979
588979
588980
600000
610000
612000
612680
634190
634165
633330
610000
165625
97095
12286725
SHARES
0.22
0.00
0.09
0.14
0.24
0.29
0.42
0.46
1.46
1.46
1.46
1.49
1.51
1.52
1.52
1.57
1.57
1.57
1.51
0.41
0.24
30.47
% of Total
Shares of company
Cumulative shares during end

XITIJ MADHUKAR SHETH.
MADHUKAR C. SHETH
SEEMA GOEL
245000
1560365
400000
0.61
3.87
0.99
-24000
Sale
Sale
6-Feb-15
13-Feb-15
501
42172
19046
6700
-3182
-29907
Purchase
Sale
Purchase
Sale
Purchase
Sale
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Purchase
Sale
30-May-14
13-Jun-14
1-Aug-14
8-Aug-14
12-Sep-14
19-Sep-14
28-Nov-14
5-Dec-14
12-Dec-14
19-Dec-14
31-Dec-14
2-Jan-15
23-Jan-15
31
30-Jan-15
Sale
27-Mar-15
31-Mar-15
31-Mar-15
Sale
20-Mar-15
-30898
Sale
Purchase
6-Mar-15
Sale
27-Feb-15
13-Mar-15
-79480
Purchase
20-Feb-15
17344
-21875
-12952
55659
36094
7030
Sale
Purchase
6-Feb-15
13-Feb-15
770
24673
6982
-315210
4790
-200000
9790
-82785
65915
Purchase
79370
-1000
23-May-14
31-Mar-15
430
20455
Purchase
Purchase
6-Jun-14
13-Jun-14
4115
Purchase
30-May-14
0.04
-0.05
-0.03
0.14
-0.08
-0.20
0.09
0.02
-0.07
-0.01
0.00
0.02
0.05
0.06
0.02
0.10
0.00
-0.78
0.01
-0.50
0.02
-0.21
0.16
0.20
0.00
-0.06
0.00
0.05
0.01
245000
1160912
1143568
1165443
1178395
1122736
1153634
1233114
1197020
1189990
1219897
1223079
1222309
1215609
1196563
1171890
1164908
1122736
1122235
1437445
1432655
1632655
1622865
1705650
1639735
400000
400000
401000
425000
424570
404115
0.61
2.88
2.84
2.89
2.92
2.78
2.86
3.06
2.97
2.95
3.02
3.03
3.03
3.01
2.97
2.91
2.89
2.78
2.78
3.56
3.55
4.05
4.02
4.23
4.07
0.99
0.99
0.99
1.05
1.05
1.00

SURENDRA KUMAR JAIN
11
Purchase
Purchase
20-Mar-15
27-Mar-15
Purchase
12-Sep-14
31-Mar-15
Purchase
04-Sep-14
31-Mar-15
Purchase
Purchase
27-Feb-15
Purchase
Purchase
20-Feb-15
6-Mar-15
Purchase
13-Mar-15
80000
Purchase
6-Feb-15
13-Feb-15
32
GAYATRI SHARMA
955000
1092500
824000
Shares
2.37
2.71
0.00
0.00
0.00
0.00
2.09
% of Total
Shares of
company
Shareholding at the beginning
31-Mar-15
31-Mar-15
31-Mar- 15
08-Aug-14
Date
PRAMOD MAHESHWARI
MR. DILIP S PHATARPHEKAR
SAMIR A. RAYANI
MR. MADAN MOHAN JAIN
AMIN A. RAYANI
MR. MUKESH MEHTA
MS. NARGIS MIRZA KABANI
AMIRALI ESSABHAI RAYANI
Name
Sr
No.
(v) Shareholding of Directors and Key Managerial Personnel:
Purchase
Reason
0.25
0.18
0.34
0.16
0.11
0.14
0.21
0.02
0.04
0.20
0.05
200000
Shares
0.50
% of Total
Shares of the
Company
Increase / Decrease
100000
72220
139000
63500
43488
54500
85000
10000
15000
20000
Purchase
30-Jan-15
ELARA INDIA OPPORTUNITIES

FUND LIMITED
10
0.43
0.43
0.18
1.27
1.27
0.92
0.76
0.66
0.52
0.31
0.29
0.25
0.05
955000
1092500
1024000
1024000
Shares
2.37
2.71
0.00
0.00
0.00
0.00
2.54
2.54
% of Total
Shares of
Company
Cumulative shares during end
172220
172220
72220
510488
510488
371488
307988
264500
210000
125000
115000
100000
20000

V.
INDEBTEDNESS
Indebtedness of the company including interest outstanding/accrued but not due for payment
(` In lakhs)
Secured Loans
Excluding Deposits
Unsecured
Loans
Deposits
Total
Indebtedness
1,678.04
Nil
Nil
1,678.04
ii) Interest due but not paid
Nil
Nil
Nil
Nil
iii) interest accrued nut not due
Nil
Nil
Nil
Nil
1,678.04
Nil
Nil
1,678.04
767.04
Nil
Nil
767.04
Nil
Nil
Nil
Nil
767.04
Nil
Nil
767.04
2,445.08
Nil
Nil
2,445.08
ii) Interest due but not paid
Nil
Nil
Nil
Nil
iii) Interest accrued but not due
Nil
Nil
Nil
Nil
2,445.08
Nil
Nil
2,445.08
Indebtedness at the beginning of the

financial year
i) Principal Amount
Total(i+ii+iii)
Change in Indebtedness
during the financial year
Addition
Reduction
Net Change
Indebtedness at the end Of the
financial year
i) Principal Amount
Total (i+ii+iii)
VI.
REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PRESONNEL
A.
Remuneration to Managing Director, Whole-time directors and /or Manager
Sl.
No.
Particulars of Remuneration
1.
Gross salary
Name of MD/WTD/Manager
Total Amount
Amirali Rayani
(Chairman)
Amin Rayani
(Managing
Director)
Samir Rayani
(Whole time
Director)
2,000,000
1,750,000
1,500,000
5,250,000
(b) Value of perquisites u/s 17(2)

Income-tax Act, 1961
Nil
Nil
Nil
Nil
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
Nil
Nil
Nil
Nil
(a) Salary as per provisions contained

in section17(1) of the Income-tax
Act,1961
2.
Stock Option
Nil
Nil
Nil
Nil
3.
Sweat Equity
Nil
Nil
Nil
Nil
4.
Commission
- as % of profit
- others, specify
Nil
Nil
Nil
Nil
5.
Others, please specify

Total(A)
Ceiling as per the Act
Nil
Nil
Nil
Nil
2,000,000
1,750,000
1,500,000
5,250,000
190.81 lakhs, being 10% of the net profits of the Company calculated as
per Section 198 of the Companies Act, 2013)
33

B.
Remuneration to other Directors (Independent Directors):
Sl.
No.
Particulars of Remuneration
Independent Directors :
Name of Directors
Total
Amount
Madan Mohan Jain
Dilip S.
Phatarphekar
Mukesh
Mehta
Nargis
Kabani
145,000
145,000
200,000
20,000
510,000
Commission
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
145,000
145,000
200,000
20,000
510,000
None
None
None
None
None
Fee for attending board committee

meetings
Total (1)
2
Others Non-Executive
Directors
Fee for attending board committee
meetings
Commission
Other, please specify
Nil
Nil
Nil
Nil
Nil
Total (B)=(1+2)
Total (2)
145,000
145,000
200,000
20,000
510,000
Total Managerial
145,000
145,000
200,000
20,000
510,000
Remuneration/ sitting fees

Overall Ceiling as per the Act
19.08 lakhs being 1% of the net profits of the Company calculated as per
Section 198 of the Companies Act, 2013)
C.
Remuneration to Key Managerial Personnel Other Than MD/MANAGER/WTD
Sl.
No
Particular of Remuneration
1.
Gross salary
Key Managerial Personnel

Pramod Maheshwari Gayatri Sharma
(CFO)
(CS)
(a) Salary as per provisions

contained in section
17(1) of the Income-tax Act, 1961
Total
Amount
2,057,347
12,88,309
3,345,656
(b) Value of perquisites u/s 17(2) Income-tax

Act,1961
623,400
Nil
623,400
(c) Profits in lieu of salary under section 17(3)

Income-tax Act, 1961
Nil
Nil
2.
Stock Option
Nil
Nil
3.
Sweat Equity
Nil
Nil
4.
Commission - as % of profit -others, specify
Nil
Nil
5.
Nil
Nil
2,680,747
1,288,309
Total
34
3,969,056
VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:

Type
Section of the
Companies Act
Brief
Description
Details of
Penalty/Punishment /compounding fees
imposed
Authority [RD/
NCLT/ COURT]
Appeal made,
if any (give
Details)
A. COMPANY
Penalty
None
Punishment
Compounding
B. DIRECTORS
Penalty
None
Punishment
Compounding
OTHER OFFICERS IN DEFAULT
Penalty
None
Punishment
Compounding
Place : Mumbai
Amirali E Rayani
Chairman
35
MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The management of Panama Petrochem Ltd. presents the analysis of the Company for the year ended on March 31, 2015 and
its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future
economic and other developments both in India and abroad.
This management discussion and analysis (MD&A) of Panama Petrochem Ltd. for the year ended on March 31, 2015 contains
financial highlights but does not contain the complete financial statements of the Company. It should be read in conjunction
with the Companys audited financial statements for the year ended on March 31, 2015.
ECONOMIC REVIEW
The Indian economy during the year under review witnessed mixed business conditions. As compared with GDP growth levels
of the previous year, the year under review witnessed some improvement in the growth parameters. Prospects for the coming
year are expected to improve further.
During the year under review, there was a significant drop in the crude oil prices. From high levels of USD 110 per barrel (bbl)
in the first half, it came down sharply to USD 45 50 per barrel in the second half. With this steep fall in crude prices in the
second half of the year and significant softening in commodity prices, overall inflation was largely brought under control. India
being dependant on large imports of crude oil, experienced a favourable impact in case of both, economic growth as well as
inflation management.
Indias economy is poised to return to its high-growth path, consequent to lower fiscal and current account deficits, falling
inflation, benign commodity prices, and structural reforms to boost investments.
INDUSTRY OVERVIEW
FY 2014-15 provided the petroleum industry with both challenges and opportunities. Strong growth in oil output from nonOPEC (Organisation of the Petroleum Exporting Countries) producers, coupled with weak demand in some key consumption
economies led to an oversupplied oil market, precipitating a sharp decline in oil prices, during the year.
This gap between supply growth of 2.0 million barrels per day (MMBPD) and demand of less than 1 MMBPD had put pressure
on OPEC to cut production. Oil prices had traded in a range of $100 $115/bbl from 2010 until around mid-June of 2014.But
then started to drift down and then by September moved sharply lower. This was triggered by Saudi Arabia clearly signalling
its unwillingness to absorb the excess supply, so prices had to fall to make storage economics work in the near term and in
the medium term trigger the actions to balance supply and demand.
The steep fall in oil prices has had a significant macroeconomic impact on oil producers and consumers. It benefited oil
importers with higher disposable income for consumers and lower costs in the production of final goods. For many importers,
the boost from lower oil prices, while sizable, is somewhat muted by the recent currency depreciation against the US dollar.
This implies a smaller oil price decline in domestic currency. On the other hand, oil exporters real incomes and profits have
generally decreased. But overall the sharp decline in oil prices boosted consumption leading to a strong growth in the second
half of 2014. In 2014, average oil demand grew by 0.7 MMBPD of crude to 92.5 MMBPD.
BUSINESS OVERVIEW
Established in 1982, Panama Petrochem Ltd., today is one of the leading manufacturers and exporters for various kinds of
Petroleum specialties. Companys diverse range of products includes Mineral Oils, Liquid Paraffins, Transformer Oils, Petroleum
Jellies, Ink Oils, and other Petroleum Specialty Products.
MANUFACTURING FACILITIES
The Company has adequate manufacturing capacity to cater the domestic as well as International requirements. Its four
manufacturing units, all located in western India, namely in Ankleshwar (Gujarat),Daman(Union Territory), Taloja (Raigadh,
Maharashtra) and Dahej (Bharuch, Gujarat). The Companys products are exported to more than 40 countries globally. The
Company has a fully equipped state-of-the-art Research and Development Center at its Ankleshwar unit where it formulates
new and value-added products. The Company manufactures more than 80 product variants used across 6-7 broad industry
segments.
The Company develops customized products as per client specification in the field of petroleum and feeds to various
industries like Printing Ink, Resin, Cosmetics, Rubber products, Pharmaceuticals, Engineering, and Chemicals including Petro
Chemicals.
Over the years, the Company has formed strong relations with its clientele, comprising of leading names across sectors. Its
ability to offer customized products complying with global quality standards has enabled to generate not only repeat business
from existing clients, but also general referral business from new clients.
36
PRODUCT WISE SALES BREAK UP FOR THE FINANCIAL YEAR 2014-15
Panoil is the key product of the Company, it has various variants depending upon its end use application.
FUTURE OUTLOOK
The aggregate demand of all the key segments in the petrochemical industry is likely to regain a sharp positive trajectory, with
key players aiming to ramp up scale.
The Company is planning to expand its operations to withstand against the negative market forces. The Company is hopeful
to override the adverse effects of the price fluctuations in the petroleum industry by resorting to bulk purchases and cost
control measures.
It is managements view that the Company will continue to strengthen its financial position with stable production volumes and
positive improvements in Commodity prices.
SWOT PROFILE
OPPORTUNITIES:
The recent positive signs emerging from the western world, augur well for our international business more particularly for
some of the specialized products strategically earmarked for export markets.
With increasing industrialization, focus on infrastructural development and outsourcing boom, the demand for the petroleum
products manufactured by the Company is likely to further improve in the coming years. Demand for intermediates, dyes,
specialty chemicals etc. will increase the demand for petroleum specialty products. This will result in a significant growth in
this industry. Growing demand from the rubber industry, personal care industry, and power sector will lead to a strong demand
in petroleum products. The relationship established by the company with the clientele would help in further growth in its
business. Moreover, the company has been increasing its presence in the export markets like USA, Africa, Europe and Asia.
THREATS:
Despite some of the positive signs, the overall state of the global economy remains fragile and volatile. Changes in Government
policies, especially regarding import of Base Oil will have an adverse impact on the performance of the Company. However,
considering the multifarious purposes for which the Base Oil is used and the domestic supplies are not adequate to meet the
domestic Demand, the possibilities for such adverse changes in Government policies appear to be remote.
37
RISKS AND CONCERNS

Environmental Risks
All phases of the oil business present environmental risks and hazards. As a result, they are subject to environmental
regulation pursuant to a complex blend of federal, provincial, and municipal laws and regulations. The Company
believes that it is in compliance with current applicable environmental rules and regulations.
Financial Risks
Financial risks associated with the petroleum industry include fluctuation in commodity prices, interest rates, and
currency exchange rates and profitability of the Company depends on the prices and availability of the base oils.
Foreign exchange risk is tracked and managed within the risk management framework. The interest rate risk is
managed by the Company through various financial instruments available to convert floating rate liabilities into fixed
rate liabilities or vice-versa.
Operational Risks
Operational risks include competitive environmental factors, reservoir performance uncertainties and dependence
upon third parties for commodity transportation & processing and a complex regulatory environment. The Company
closely follows the applicable government regulations. The Company carries insurance coverage to protect itself
against those potential losses that could be economically insured against
Cyber security risk
The use of information and telecommunication technologies is increasing, resulting in greater security threats to
its digital infrastructure. A breach of its digital security or disruptions to its digital infrastructure, due to intentional
actions, such as cyber-attacks or human error could lead to serious impacts to its businesses. These impacts
may include injury to staff, loss of control, impact on continuity or damage to assets and services, harm to the
environment, the loss of sensitive data or information, legal and regulatory breaches and reputational damage. But
the Company continues to strengthen its responses to cyber security threats through proactive and reactive risk
mitigations.
PERFORMANCE
The year under review was a challenging year. The dramatic fall in crude oil prices impacted companys business, and resulted
in lower profit .
Earnings before Interest, Depreciation, Tax & Amortization on a standalone basis decreased by 4% to ` 2,748.12 lakhs
against ` 2,863.44 lakhs during the previous year. Net Profit on a standalone basis has come down to ` 1,375.87 lakhs against
` 1,540.38 lakhs during the previous year.
However, the benefits from demand revival, ended the year on a strong note. In FY 2014-15, the Company has achieved
(consolidated) revenue of ` 80,530.79 lakhs an increase of 27% on a Year on Year basis.
HUMAN RESOURCE / INDUSTRIAL RELATIONS
The Company recognizes the importance and contribution of its human resources for its growth &development and values
their talent, integrity and dedication. The Company offers a highly entrepreneurial culture with a team based approach that
we believe encourages growth and motivates its employees. The Company has been successful in attracting and retaining key
professionals and intends to continue to seek fresh talent to further enhance and grow our business.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an effective and adequate internal audit and control system to ensure that all assets are safeguarded
against loss and all transactions are authorised, recorded and reported correctly. The Internal audits are conducted by firm
of Chartered Accountants, ably supported by an internal team staffed with qualified and experienced people. All operational
activities are subject to internal audits at frequent intervals. The existing audit and inspection procedures are reviewed
periodically to enhance their effectiveness, usefulness and timeliness.
CAUTIONARY STATEMENT
Readers are cautioned that this Management Discussion and Analysis may contain certain forward looking statements based
on various assumptions on the Companys present and future business strategies and the environment in which it operates.
The Companys actual performance may differ materially from those expressed or implied in the statement as important
factors could influence Companys operations such as effect of political conditions in India and abroad, economic development,
new regulations and Government policies and such other factors beyond the control of the Company that may impact the
businesses as well as its ability to implement the strategies.
38
REPORT ON CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement a Report on Corporate Governance is given below:
1. COMPANYS PHILOSOPHY ON CODE OF GOVERNANCE
Our Companys Corporate Governance philosophy is to continuously strive to attain higher levels of accountability, transparency,
responsibility, and fairness in all aspects of its operations. Our business culture and practices are founded upon a common set
of values that govern our relationships with customers, employees, shareholders, suppliers, bankers and the communities in
which we operate.
Our Corporate Governance framework ensures that we make timely disclosures and share accurate information regarding our
financials and performance, as well as the leadership and governance of the Company.
Our Company believes that Good Corporate Governance is essential ingredient of any business, a way of life rather than a
mere legal compulsion.
The Company is conscious of its responsibility as a good corporate citizen. The Company values transparency, professionalism,
and accountability.
2. BOARD OF DIRECTORS
(a) Composition
Your Companys Board comprises of 7 Directors with considerable experience in their respective fields. Of these 3
are Executive Directors and 4 Non Executive (Independent) Directors. The Chairman of the Board is an Executive
Director.
All Independent Directors of the Company have been appointed as per the provisions of the Companies Act, 2013.
Formal letters of appointment have been issued to the Independent Directors. The terms and conditions of their
appointment are disclosed on the Companys website.
None of the Directors on the Board is a Member of more than 10 Committees and Chairman of more than 5
Committees (Committees being Audit Committee and Stakeholders Relationship Committee, as per Clause 49 II (D)
(2) of the Listing Agreement), across all the Companies in which he/ she is a Director.
(b) Meetings and attendance during the year
Four Board Meetings were held during the financial year April 1, 2014 to March 31, 2015. All relevant and materially
significant information, are submitted as part of the agenda papers well in advance of the Board Meetings. The
Company Secretary, in consultation with the Chairman & Managing Director, drafts the agenda of the meetings.
Details of attendance of Directors in the Board Meetings during the financial year April 1, 2014 to March 31, 2015
are as under:
Sr.
no.
Name of the Director
Category of
Directorship
Attendance details
Board
Meetings
Attended
% of total meetings
attended during the
tenure as a Director
Last AGM
ED
100
NO
Mr. Amin A. Rayani
ED
100
Yes
Mr. Samir A. Rayani
ED
75
Yes
Mr. Mukesh Mehta
NED
100
Yes
Mr. Dilip S. Phatarphekar
NED
100
No
NED
100
Yes

(appointed w.e.f
February 13, 2015)
NED
100
N.A
ED - Executive Director
NED Non-Executive Director
(c) Number of Board Meetings held and the dates of the Board Meeting

During the Financial Year April 1, 2014 to March 31, 2015, 4 (Four) meetings were held on the following dates:
May 21, 2014, July 28, 2014, November 14, 2014 and February 13, 2015.
39
(d) Number of Other Companies or Committees the Director is a Director / Member / Chairman:
Name of the Director
& Designation
Category
No. of positions held in other Public Companies

Board
Committee
Membership
Chairmanship
Executive Director
(Chairman)
Nil
Nil
Nil
Mr. Amin A. Rayani
Executive Director
(Managing Director & CEO)
Nil
Nil
Nil
Mr. Samir A. Rayani
Executive Director
Nil
Nil
Nil
Independent & Non

Executive Director
Nil
Independent & Non

Executive Director
Nil
Mr. Mukesh Mehta
Independent & Non

Executive Director
Nil
Nil
Nil
Additional (Independent)
Director
Nil
Nil
Nil
In accordance with Clause 49 of the Listing Agreement, Memberships/ Chairmanships of Audit Committee and
Stakeholders Relationship Committee in public limited companies have been considered.
(e) Selection of Independent Directors
Considering the requirement of skill sets on the Board, eminent people having an independent standing in their
respective field/profession, and who can effectively contribute to the Companys business and policy decisions
are considered by the Nomination and Remuneration Committee, for appointment, as Independent Directors on
the Board. The Committee, inter alia, considers qualification, positive attributes, area of expertise and number of
Directorships and Memberships held in various committees of other companies by such persons in accordance with
the Companys Policy for Selection of Directors and determining Directors independence. The Board considers the
Committees recommendation, and takes appropriate decision.
(f) Board and Director Evaluation and criteria for evaluation
During the year, the Board has carried out an annual evaluation of its own performance, performance of the
Directors, as well as the evaluation of the working of its Committees.
The Nomination and Remuneration Committee has defined the evaluation criteria, procedure and time schedule for
the Performance Evaluation process for the Board, its Committees and Directors. The criteria for Board Evaluation
include inter alia, degree of fulfillment of key responsibilities, Board structure and composition, establishment
and delineation of responsibilities to various Committees, effectiveness of Board processes, information and
functioning.
Criteria for evaluation of individual Directors include aspects such as attendance and contribution at Board/ Committee
Meetings and guidance/ support to the management outside Board/ Committee Meetings. In addition, the Chairman
was also evaluated on key aspects of his role, including setting the strategic agenda of the Board, encouraging active
engagement by all Board members and motivating and providing guidance to the Managing Director & CEO.
(g) Familiarization Programme for Independent Directors
The Company familiarizes its Independent Directors with the Company, their roles, rights, responsibilities in the
Company, nature of the industry in which the Company operates, business model of the Company, etc., through
various programmes. These include orientation programme upon induction of new Directors, as well as other
initiatives to update the Directors on a continuing basis.
The familiarization programme for Independent Directors is disclosed on the Companys website at the following web
link: http://www.panamapetro.com/Familiarization%20Programme%20For%20Independent%20Directors.pdf
(h) Separate Meeting of Independent Directors
A separate meeting of Independent Directors of the Company, without the attendance of Non-Independent Directors
and members of management, was held on November 14, 2014, as required under Schedule IV to the Companies
Act, 2013 (Code for Independent Directors) and Clause 49 of the Listing Agreement.
40
At the Meeting, the Independent Directors:

Reviewed the performance of Non-Independent Directors and the Board as a whole;
Reviewed the performance of the Chairman of the Company, taking into account the views of Executive Director and
Non-Executive Directors; and
Assessed the quality, quantity and timeliness of flow of information between the Company management and the
Board that is necessary for the Board to effectively and reasonably perform their duties.
Mr. Dilip Phatarphekar, Mr. Madan Mohan Jain and Mr. Mukesh Mehta attended the Meeting of Independent Directors.
Mr. Dilip Phatarphekar chaired the Meeting
3. AUDIT COMMITTEE
(a) Terms of Reference of Audit Committee
The Committees composition meets with requirements of section 177 of the Companies Act, 2013 and Clause 49 of
the Listing Agreement.
Role of Audit Committee inter alia, includes the following:

Oversight of the Companys financial reporting process and the disclosure of its financial information to ensure that
the financial statement is correct, sufficient and credible.
Recommending to the Board, the appointment, reappointment and, if required, the replacement or removal of
statutory auditors, including cost auditors, and fixation of audit fees and other terms of appointment.
Approving payment to statutory auditors for any other services rendered by them.
Reviewing with the management, the annual financial statements and auditors report thereon before submission to
the Board for approval, with particular reference to:

Matters required to be included in the Directors Responsibility Statement to be included in the Directors
Report
Changes, if any, in accounting policies and practices and reasons for the same.
Major accounting entries involving estimates based on the exercise of judgment by the management.
Significant adjustments made in financial statements arising out of audit findings.
Compliance with listing and other legal requirements relating to financial statements.
Disclosure of related party transactions.
Qualifications in draft audit report.
Reviewing with the management, the quarterly financial statements before submission to the Board for approval.
Reviewing with the management, the statement of uses/ application of funds raised through an issue (public issue,
rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the
offer document/prospectus/notice, and the report submitted by the monitoring agency monitoring the utilization of
proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this
matter.
Reviewing and monitoring the auditors independence and performance and effectiveness of audit process.
Approval or any subsequent modification of transactions of the Company with related parties.
Scrutiny of inter-corporate loans and investments.
Valuation of undertakings or assets of the Company, wherever it is necessary.
Evaluation of internal financial controls and risk management systems.
Reviewing with the management, performance of statutory auditors, including cost auditors and internal auditors,
adequacy of internal control systems.
Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department,
staffing and seniority of the official heading the department, reporting structure, coverage and frequency of internal
audit.
Discussion with internal auditors, any significant findings and follow-up thereon.
Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected
fraud or irregularity or a failure of internal control systems of a material nature, and reporting the matter to the
Board.
41
Discussion with statutory auditors, before the audit commences, about the nature and scope of audit as well as post
audit discussion to ascertain any area of concern.
To look into the reasons for substantial defaults, if any, in the payment to depositors, debenture holders, shareholders
(in case of non-payment of declared dividends) and creditors.
To review the functioning of the Whistle Blower mechanism.
Approval of appointment of the CFO (i.e. the whole-time Finance Director or any other person heading the finance
function or discharging that function) after assessing qualifications, experience and background of the candidate.
Carrying out such other functions as may be specifically referred to the Committee by the Companys Board of
Directors and/or other Committees of Directors.
Reviewing financial statements, in particular the investments made by the Companys unlisted subsidiaries.
Reviewing the following information:

The Management Discussion and Analysis of financial condition and results of operations;
Statement of significant related party transactions (as defined by the Audit Committee), submitted by
management;
Management letters/letters of internal control weaknesses issued by the statutory auditors;
Internal audit reports relating to internal control weaknesses; and
The appointment, removal and terms of remuneration of internal auditors / chief internal auditor.
(b) Composition, name of Members, Chairman and their attendance at meetings during the year

The Audit Committee of the Company is constituted in accordance with the provisions of Clause 49 of the Listing
Agreement and the provisions of Section 177 of the Companies Act, 2013. All members of the Committee are
financially literate.
The attendance of each member of the committee is given below.

Name of the Member
Attendance at the Audit

Committee Meeting
% of total meetings attended during

the tenure as a Director / Secretary
Mr. Madan Mohan Jain ( Chairman)
100
Mr. Mukesh Mehta(Member)
100
Mr. Samir A. Rayani (Member)
75
100
Company Secretary
Ms. Gayatri Sharma

During the year, the Audit Committee reviewed key audit findings covering operational, financial and compliance
areas. Risk mitigation plans covering key risks affecting the Company were presented to the Committee.
The Chairman of the Audit Committee, Mr. Madan Mohan Jain was present at the Annual General Meeting of the
Company held on September 4, 2014.
3. NOMINATION AND REMUNERATION COMMITTEE

The Committees constitution and terms of reference are in compliance with Provisions of the Companies Act, 2013,
Clause 49 of the Listing Agreement.
(a) Terms of Reference of Nomination and Remuneration Committee, inter alia, includes the following

To identify persons who are qualified to become Directors and who may be appointed in senior management in
accordance with the criteria laid down and to recommend to the Board their appointment and/ or removal.
To carry out evaluation of every Directors performance.
To formulate the criteria for determining qualifications, positive attributes and independence of a Director, and
recommend to the Board a policy, relating to the remuneration for the Directors, key managerial personnel and
other employees.
42
To formulate the criteria for evaluation of Independent Directors and the Board.
To recommend/review remuneration of the Managing Director(s) and Whole-time Director(s) based on their
performance and defined assessment criteria.
To ensure relationship of remuneration to performance is clear and meets appropriate performance

benchmarks.
To carry out any other function as is mandated by the Board from time to time and / or enforced by any
statutory notification, amendment or modification, as may be applicable.
To perform such other functions as may be necessary or appropriate for the performance of its duties.
(b) Composition, name of Members, chairman and their attendance at meetings during the year
May 21, 2014, July 28, 2014, November 14, 2014 and February 13, 2015
Name of the Member
Attendance at the
Nomination & Remuneration Meeting
% of total attended
during the tenure as a
Director / Secretary
Mr. Mukesh Mehta (Chairman w.e.f. November 14,2014)
100
Mr. Dilip S. Phatarphekar (Member, resigned from the

chairmanship from November 14, 2014)
100
Mr. Madan Mohan Jain (Member)
100
Ms. Gayatri Sharma (secretary)
100
(c) Remuneration Policy of the Company

The Companys philosophy for remuneration of Directors, key managerial personnel and senior management is
based on the commitment of fostering a culture of leadership with trust.
The Company has adopted a Policy for remuneration of Directors, Key Managerial Personnel and other employees,
which is aligned to this philosophy. The key factors considered in formulating the Policy are as under:
(a) The level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors
of the quality required to run the Company successfully;
(b) Relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
(c) Remuneration to Directors, key managerial personnel and senior management involves a balance between
fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the
Company and its goals.
The key principles governing the Companys Remuneration Policy are as follows:
Remuneration to Non- Executive / Independent Director:

Remuneration / Commission:
The remuneration / commission shall be fixed as per the slabs and conditions mentioned in the Articles of
Association of the Company and the Companies Act, 2013 and the rules made thereunder.
Sitting Fees:
The Non- Executive / Independent Director may receive remuneration by way of fees for attending meetings of
Board or Committee thereof. Provided that the amount of such fees shall not exceed Rs. One lakh per meeting
of the Board or Committee or such amount as may be prescribed by the Central Government from time to
time.
Commission:
Commission may be paid within the monetary limit approved by shareholders, subject to the limit not exceeding
1% of the profits of the Company computed as per the applicable provisions of the Companies Act, 2013.
Remuneration to Whole-time / Executive / Managing Director, KMP and Senior Management

Personnel:

Fixed pay:
The Whole-time Director / KMP and Senior Management Personnel shall be eligible for a monthly remuneration
as may be approved by the Board on the recommendation of the Committee. The break up of the pay scale and
quantum of perquisites including, employers contribution to P.F, pension scheme, medical expenses, club fees
etc. shall be decided and approved by the Board on the recommendation of the Committee and approved by
the shareholders and Central Government, wherever required.
43
Minimum Remuneration:
If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall pay
remuneration to its Whole-time Director in accordance with the provisions of Schedule V of the Companies
Act, 2013 and if it is not able to comply with such provisions, with the previous approval of the Central
Government.
Provisions for excess remuneration:
If any Whole-time Director draws or receives, directly or indirectly by way of remuneration any such sums in
excess of the limits prescribed under the Companies Act, 2013 or without the prior sanction of the Central
Government, where required, he / she shall refund such sums to the Company and until such sum is refunded,
hold it in trust for the Company. The Company shall not waive recovery of such sum refundable to it unless
permitted by the Central Government.
No remuneration is paid to any Non-Executive Directors during the financial year April 1, 2014 to March 31, 2015
except sitting fee for attending Board meetings and committee meetings.
(d) Details of the Executive Directors Remuneration for the financial year ended March 31, 2015
(` in lakhs)
DIRECTORS
REMUNERATION
Executive Directors
Mr. Amirali E
Rayani
Mr. Amin A
Rayani
Mr. Samir A
Rayani
Non-Executive
Directors
20.00
17.50
15.00
Nil
(a)
Salary & Allowances (fixed)
(b)
Benefits & Perquisites
Nil
Nil
Nil
Nil
(c)
Bonus / Commission Additional

Salary
Nil
Nil
Nil
Nil
(d)
Pension, Contribution to Provident

fund & Superannuation Fund
Nil
Nil
Nil
Nil
(e)
Stock Option Details(if any)
(f)
Notice period
(g)
Severance fess
The Company has not offered any Stock Options to its employees.
The Agreement may be terminated by either
party giving the other party six months notice.
Nil
Reasonable (to be
decided by the
Board) written notice, to be served
Nil
Note:
i.
The agreement with each Executive Director is for a period of 5 years.
ii.
There were no performance linked incentive paid to the directors for the year 2014-15
(e) Details of the Sitting Fees paid to Non-Executive Directors for the financial year ended March 31, 2015
(` in lakhs)
Name of the Non-Executive Director
Amount of Sitting Fees Paid
1.45
1.45
Mr. Mukesh Mehta
2.00
0.20
(f) Shareholdings of Non-Executive Directors

None of the Non-Executive Directors held shares in the Company as on March 31, 2015.
5. STAKEHOLDERS RELATIONSHIP COMMITTEE

The Board has constituted Stakeholders Relationship Committee in accordance with the Provisions of the Companies Act,
2013 and Clause 49 of the Listing Agreement.
44

Terms of Reference of Stakeholders Relationship Committee

To look into redressing shareholders and investors complaints and to expedite the process of redressal of complaints
like transfer of shares, non-receipt of balance sheet, non-receipt of declared dividends etc. and carry out any other
function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment
or modification, as may be applicable.
(a) Composition, name of Members, chairman and their attendance at meetings during the year
Name of the Member
Attendance at the
Stakeholders Relationship
Committee Meeting
% of total attended
Mr. Dilip S. Phatarphekar( Independent & Non

Executive Director- Chairman of the committee)
100
Mr. Mukesh Mehta (Independent & Non

Executive Director- Member)
100
Mr. Amin A. Rayani

(Managing Director & CEO- Member)
100

(Executive Director- Member)
100
100
Company Secretary
Ms. Gayatri Sharma
(b) Meetings of the Committee
(c) Name & Designation of the Compliance Officer
Ms. Gayatri Sharma, Company Secretary is the Compliance Officer of the Company.
(d) Redressal of Complaints
Shareholders may send their complaint for redressal to the email ID: cs@panamapetro.com
(e) No. of Complaints received, resolved and pending during the financial year:
During the financial year, the company has received six complaints from the shareholders, all of which have been
resolved to the satisfaction of the shareholders to the date. There was no pending complaint from any shareholder
as on March 31, 2015.
6. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committees prime responsibility is to assist the Board in discharging its social
responsibilities by way of formulating and monitoring implementation of the framework of corporate social responsibility
policy and observe practices of Corporate Governance at all levels.
The Committees constitution and terms of reference meet with the requirements of the Companies Act, 2013.
(a) Terms of Reference of the Committee, inter alia, includes the following

To formulate and recommend to the Board, a Corporate Social Responsibility (CSR) Policy indicating activities to
be undertaken by the Company in compliance with provisions of the Companies Act, 2013 and rules made there
under.
To recommend the amount of expenditure to be incurred on the CSR activities.
To monitor the implementation of the framework of the CSR Policy.
To carry out any other function as is mandated by the Board from time to time and / or enforced by any
statutory notification, amendment or modification, as may be applicable.
The Board has adopted the CSR Policy as formulated and recommended by the Committee. The same is displayed on
the website of the Company. The Annual Report on CSR activities for the year 2014-15 forms a part of the Directors
Report.
45
(b) Composition of Corporate Social Responsibility Committee

During the Financial Year April 1, 2014 to March 31, 2015, 2 (Two) meetings were held on the following dates:
July 28, 2014 and February 13, 2015.
Name of the Member
Attendance at
the Stakeholders
Relationship
Committee Meeting
% of total attended
Mr. Mukesh Mehta (Independent &

Non Executive Director- Chairman )
100
Mr. Amin A. Rayani (Managing Director & CEO- Member)
100
Mr. Amirali E. Rayani (Executive Director- Member)
100
100
Company Secretary
Ms. Gayatri Sharma (secretary)
7. GENERAL BODY MEETINGS
(a) Particulars of past three Annual General Meetings of the Company
Year
Date
Venue
Time
No. of Special
Resolution(s) passed
2012
August 6,2012
Plot No. 3303, G.I.D.C. Estate,

11:30 A.M
2013
September 27,2013

11:00 A.M
2014
September 4, 2014

11:00 A.M
(b) Postal Ballot

The Company had not conducted any postal ballot during the year and there is no resolution proposed to be passed
by postal ballot at the ensuing Annual General Meeting.
(c) Disclosure Regarding Re-appointment of Director in the ensuing AGM

Mr. Samir Rayani, Director who shall be retiring in this AGM, being eligible to be offered himself for re-appointment.
His brief particulars as stipulated under Clause 49 of Listing Agreement, are provided in the notice convening this
meeting.
8. CODE OF CONDUCT
The Company has adopted the Code of Conduct for all Board members and senior management which incorporates
the duties of Independent Directors as laid down in the Companies Act, 2013. The Code is posted on the Companys
website. All Board members and senior management personnel (as per Clause 49 of the Listing Agreement) have affirmed
compliance with the applicable Code of Conduct.
A declaration to this effect, signed by the Managing Director & CEO forms part of this Report.
Apart from receiving sitting fees that they are entitled to under the Companies Act, 2013 as Non-Executive Directors and
reimbursement of expenses incurred in the discharge of their duties, none of the Non-Executive Directors has any other
material pecuniary relationship or transactions with the Company, its promoters, its Directors, its senior management or
its subsidiaries and associates. None of the Non- Executive Directors are inter-se related to each other.
The Directors and senior management of the Company have made disclosures to the Board confirming that there are no
material financial and/ or commercial transactions between them and the Company that could have potential conflict of
interest with the Company at large.
9. SUBSIDIARIES

The Company does not have any material non-listed Indian subsidiary as defined under Clause 49 of the Listing
Agreement, viz. an unlisted subsidiary incorporated in India, whose income or net worth (i.e. paid-up capital and free
reserves) exceeds 20% of the consolidated income or net worth respectively, of the listed holding company and its
subsidiaries in the immediately preceding accounting year. It is, therefore, not required to have an Independent Director
of the Company on the Board of such subsidiary.
46
The Companys Audit Committee reviews the consolidated financial statements of the Company as well as the financial
statements of the subsidiaries, including the investments made by the subsidiaries. The minutes of the Board Meetings,
along with a report of the significant transactions and arrangements of the unlisted subsidiaries of the Company are
periodically placed before the Board of Directors of the Company.
The Company has formulated a policy for determining material subsidiaries and the Policy is disclosed on the Companys
website at the web link. http://www.panamapetro.com/Subsidiary%20Policy.pdf
10. DISCLOSURES
(a) Related Party Transactions

There are no materially significant related party transactions with its Promoters, Directors or the Management, their
Subsidiaries or Relatives etc., which may have potential conflict with the interest of the Company at large. The other
related party transactions are given in Notes to Accounts annexed to and forming the part of Balance Sheet and Profit
and Loss Account of the Company. The Company has formulated a Related Party Transactions Policy and the same
is displayed on the Companys website at the web link http://www.panamapetro.com/RPT.pdf
(b) Disclosure of Accounting treatment

In the preparation of the financial statements, the Company has followed the accounting standards issued by the
Companies (Accounting Standards) Rules 2006 (as amended), to the extent applicable.
(c) Non-compliance by the Company, Penalties, Strictures

There were no instances of non-compliance by the Company, penalties, strictures imposed on the Company by the
Stock Exchanges or SEBI or any statutory authority on any matter related to capital markets during the last three
years.
(d) Disclosure of Risk management

The Company has a well defined risk management framework in place. The Company periodically places before the
Audit Committee and the Board, the key risks and the risk assessment and mitigation procedures followed by the
Company.
(e ) Whistle Blower Policy

The Company has formulated a policy for employees to report to the management concerns about unethical behavior,
actual or suspected fraud or violation of the Companys code of conduct .The policy also lays down the mechanism to
prohibit managerial personnel from taking adverse action against employees, who are disclosing in good faith alleged
wrongful conduct on matter of public concern involving violation of law, mismanagement, misappropriation of public
funds etc.
Employees aware of any alleged wrongful conduct are encouraged to make a disclosure to the Audit Committee. The
policy shall also provide for direct access to the Chairman of the Audit Committee.
(f) Details of compliance with mandatory requirements

The Company has complied with all mandatory requirements as mandated under Clause 49 of the Listing Agreement.
A certificate from the practicing Company Secretary to this effect has been included in this report. It is also confirmed
that no personnel has been denied access to the Audit Committee.
(g)
Adoption of non mandatory requirements

Separate post of Chairman and CEO
The Chairman of the Board is a Non-Executive Director and his position is separate from that of the Managing
Director & CEO.
Reporting of Internal Auditor
The Internal Auditor reports to the Audit Committee.
Audit qualifications
The financial results of the Company are unqualified.
11 CEO CERTIFICATION

The Managing Director & CEO and the Chief Financial Officer have certified to the Board in accordance with Clause 49 IX
of the Listing Agreement pertaining to CEO/ CFO certification for the Financial Year ended March 31, 2015.
47
12 MEANS OF COMMUNICATION
(a) Quarterly Results / Annual Results

The Quarterly / Annual Results and notices as required under clause 41 of the Listing Agreement are normally
published in Financial Express (English & Gujarati editions)
(b) Posting of Information on the website of the Company:

The Annual / Quarterly results of the Company, Share Holding Pattern, and other official news releases are regularly
posted on its website www.panamapetro.com
(c) The Management Discussion and Analysis Report forms a part of the Annual Report.
13 GENERAL SHAREHOLDERS INFORMATION
(a) Annual General Meeting
Day & Date
: Monday, September 14, 2015
Time
: 11.00 A.M.
Venue
: Plot No. 3303, G.I.D.C. Estate, Ankleshwar - 393 002
(b) Financial Year: April 2014 to March 2015

Financial Calendar
Events
Tentative time frame
Financial Reporting for the second quarter ending

September 30, 2015
2nd week of November, 2015
Financial Reporting for the third quarter ending

December 31, 2015
2nd week of February, 2016
Financial Reporting for the fourth quarter ending

March 31, 2016
Last Week of May, 2016
(c) Dates of Book Closure:

September 10, 2015 to September 14, 2015 (Both days inclusive)
(d) Dividend Payment Date:

Interim N.A
Final
- within 2 weeks from the declaration of the dividend
(e) Listing on Stock Exchanges:

Equity Shares

The Shares of the Company are listed on the BSE Limited & National Stock Exchange of India Ltd.
Stock Code:
BSE Limited: 524820
National Stock Exchange of India Limited: PANAMAPET
Demat ISIN Number for NSDL & CDSL: INE305C01029
Global Depository Receipts(GDRs)
The GDRs of the Company are listed on Luxembourg Stock Exchange.
Security codes of GDRs

COMMON CODE
065195372
ISIN
US6982941055
CUSIP
698294105
48
(f) Market Price Data:

High/ low of market price of the Companys equity shares traded on BSE during the last financial year April 1, 2014
to March 31, 2015 were as follows:
Month
High
(`)
BSE
High
(`)
NSE
Low
(`)
BSE
Low
(`)
NSE
Month
April
150.0
154.0
136.3
131.6 October
May
206.0
209.0
138.1
June
249.4
239.4
July
260.0
268.0
August
256.9
258.7
225.0
September
316.9
319.0
51.6
High
(`)
BSE
High
(`)
NSE
Low
(`)
BSE
Low
(`)
NSE
*69.9
72.9
57.3
57.1
132.4 November
64.9
64.8
55.1
54.4
192.7
193.6 December
66.4
67.5
56.6
56.3
201.2
195.6 January
61.0
61.0
53.7
53.1
225.7 February
64.0
65.0
49.8
49.2
64.1
63.70
55.5
55.2
49.4 March
Source: www.bseindia.com & www.nseindia.com
* The shareholders of the Company have approved the sub-division of each equity shares having a face value of
` 10 into five equity shares having a face value of ` 2 each in its meeting held on September 4, 2014.
(g) Performance in comparison to BSE SENSEX
The record date for sub-division was September 22, 2014.The price of shares in performance comparison for the
period prior to September 22, 2014 reflects the effect of sub-division.
(h) Registrar and Share Transfer Agent & Share Transfer System

The shares of the Company can be transferred by lodging Transfer Deeds and Share Certificates with the Registrars
& Share Transfer Agents viz. M/s Bigshare Services Pvt. Ltd. (Address as mentioned below). The Shareholders have
option of converting their holding in dematerialized form and effecting the transfer in dematerialized mode.
Name
Bigshare Services Pvt. Ltd.
Address
E-2, Ansa Industrial Estates, Sakivihar Road, Saki Naka,

Andheri (East), Mumbai 400 072
Telephone No.
91-22-2847 0652
91-22-4043 0200
E mail
info@bigshareonline.com
(i) Share Transfer System

The Companys shares are traded in the BSE Ltd. & National Stock Exchange of India Limited, compulsorily in Demat
mode. Physical shares which are lodged with the Registrar & Transfer Agent or/ Company for transfer are processed
and returned to the shareholders duly transferred within the time stipulated under the Listing Agreement subject to
the documents being in order.
49
(j) Distribution of Shareholding as on March 31,2015:

Shareholding of Nominal Value of
Shareholders
Share Amount
Number
% to Total
in `
% to Total
(1)
(2)
(3)
(4)
(4)
Up to 5,000
3464
90.80
3,373,688
4.18
5,001
10,000
135
10,001
20,000
93
3.54
2.44
1,040,232
1.29
1,412,086
1.75
20,001
30,000
40
1.05
984,304
1.22
30,001
40,000
16
0.42
580,054
0.71
40,001
50,000
11
0.29
496,390
0.61
50,001
100,000
18
0.47
1,262,832
1.57
100,001 and Above
38
0.99
71,508,544
88.66
Total
3815
80,658,130
100
(k) Secretarial Audit

M/s Milind Nirkhe & Associates, Practicing Company Secretaries have conducted a Secretarial Audit of the
Company for the year 2014-15. Their Audit Report confirms that the Company has complied with the applicable
provisions of the Companies Act, 2013 and the Rules made there under, Listing Agreements with the Stock
Exchanges, applicable SEBI Regulations and other laws applicable to the Company. The Secretarial Audit Report
forms part of the Directors Report.
Pursuant to Clause 47 (c) of the Listing Agreement with the Stock Exchanges, certificates have been issued on
a half-yearly basis, by a Company Secretary in practice.
A Company Secretary in practice carries out a quarterly Reconciliation of Share Capital Audit, to reconcile the
total admitted capital with National Securities Depository Ltd. (NSDL) and Central Depository Services (India)
Ltd. (CDSL) and the total issued and listed capital. The audit confirms that the total issued/ paid-up capital is in
agreement with the aggregate of the total number of shares in physical form and the total number of shares in
dematerialized form (held with NSDL and CDSL).
(l) Dematerialization of shares and liquidity:

As on March 31, 2015 about 98.12% of the Companys equity paid-up capital had been dematerialized. Trading in
equity shares of the Company at the Stock Exchange is permitted compulsorily in demat mode.
(m) Corporate Ethics:

The constant endeavor of Panama Petrochem Ltd is to enhance the reputation of the Company and irrespective of
the goals to be achieved, the means are as important as the end. The Company has adopted Code Of Conduct for
Regulating, Monitoring and Reporting of Trading by Insiders and for Disclosure which contains policies prohibiting
insider trading.
(n) Outstanding GDRs / ADRs / Warrants or any Convertible instruments, conversion date and likely
impact on equity:

Outstanding GDRs as on March 31, 2015 are 491,469 representing 12,286,725 Equity shares constituting 30.47% of
the paid up share capital of the Company.
(o) Plant Locations:

The Company has the following units located at:

1. Plot No: 3303, GIDC Industrial Estate, Ankleshwar-393 002, Gujarat.

Tel: 91-2646-221 068 / 250 281 Email: ankl@panamapetro.com
2. Survey No: 78/2, Daman Industrial Estate, Unit III, Poly Cab Road,
Village Kadaiya, Dist. Daman, Daman (UT)-396 210.

Tel: 91-260-329 1311 Email: daman@panamapetro.com
3. Plot No. H-12, M.I.D.C., Taloja, Navi Mumbai - 410208.

Tel: 91-22-27411456 Email:taloja@panamapetro.com
4. Plot No. 23 & 24 SEZ ,Dahej, Bharuch District, Gujarat-392110.

Tel:91-2641-320980 Email: dahej@panamapetro.com
50
(p) Address for Correspondence:

The shareholders may send their communication grievances/ queries to the Registrar and Share Transfer Agents at
their Address mentioned above or to the Company at:
Corporate Office:
Panama Petrochem Ltd.
401, Aza House, 24, Turner Road, Bandra (W), Mumbai 400 050
Phone: 022- 42177777 Fax: 022- 42177788 Email: cs@panamapetro.com
CEO Certificate on Corporate Governance

To,
The Members of
PANAMA PETROCHEM LIMITED.
I, Amin A. Rayani, Managing Director & CEO of Panama Petrochem Limited hereby declare that all the members of the Board
of Directors and Senior Management Personnel have affirmed compliance with the Code of Conduct, as applicable to them,
for the year ended March 31, 2015.

For PANAMA PETROCHEM LIMITED
Place: Mumbai
Amin A. Rayani

Registered Office :
Plot No.3303, GIDC Estate,
Ankleshwar - 393 002.
Practicing Company Secretarys Certificate on Corporate Governance

To
The Members of Panama Petrochem Limited
We have examined the compliance of conditions of corporate governance by Panama Petrochem Limited, for the year ended
on March 31, 2015, as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges.
The compliance of conditions of corporate governance is the responsibility of the management. Our examination has been
limited to a review of the procedures and implementations thereof, adopted by the Company for ensuring the compliance of
the conditions of the Corporate Governance as stipulated in the Clause. 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 Clause 49 of 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 MILIND NIRKHE & ASSOCIATES

Company Secretaries
MILIND NIRKHE
Membership No : 4156
CP NO : 2312
Place: Mumbai
51
To,
The Board of Directors,
Panama Petrochem Ltd.,
401, Aza House, 24, Turner Road,
Bandra (W), Mumbai - 400 050
CEO & CFO CERTIFICATION

We hereby certify that:
(a) We have reviewed financial statements and the cash flow statement for the year ended March 31, 2015 and that to the
best of our knowledge and belief:
i)
these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
ii) these statements together present a true and fair view of the Companys affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which
are fraudulent illegal or violative of the Companys code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and we have
disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any,
of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee:
i)
significant changes in internal control over financial reporting during the year;
ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the
financial statements; and
iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the Companys internal control system over financial reporting.
For PANAMA PETROCHEM LTD.

Amin A. Rayani
Place: Mumbai
Pramod Maheshwari
CFO
Registered Office :
Plot No.3303, GIDC Estate,
Ankleshwar - 393 002.
52
INDEPENDENT AUDITORS REPORT

To the Members of
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Panama Petrochem Limited (the Company), which
comprise the Balance Sheet as at 31 March, 2015, the Profit and Loss Statement and the Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
(the Act) with respect to the preparation and presentation of these standalone financial statements that give a true and
fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates
that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required
to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
financial control relevant to the Companys preparation of the financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Companys directors, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone
financial statements 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, of the state of affairs of the Company as at 31 March
2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1.
As required by the Companies (Auditors Report) Order, 2015 as amended (the Order) issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2.
As required by section 143(3) of the Act, we report that:

a.
we have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
b.
in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books;
c.
the Balance Sheet, the Profit and Loss Statement and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account;
d.
in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e.
on the basis of written representations received from the directors as on 31 March 2015 taken on record by the
Board of Directors, none of the directors is disqualified as on 31 March 2015, from being appointed as a director in
terms of Section 164(2) of the Act;
53

f.
with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations
given to us:
i.
the Company has disclosed the impact of pending litigations on its financial position in its financial statements
Refer Note 25 to the financial statements;
ii.
the Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts Refer Note 34 to the financial
statements;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.

For Bhuta Shah & Co.

Chartered Accountants
Firm Reg. No.: 101474W

Mumbai, 30 May, 2015
CA. Virag Shah

Partner
Membership No.: 153415
Annexure to Independent Auditors Report

Referred to in paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of our Report of even date
(i)
(ii)
(iii)
In respect of fixed Assets

(a)
The company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
(b)
As explained to us, all the fixed assets have not been physically verified by the management during the year but
there is regular programme of verification which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were noticed on such verification.
In respect of its inventories:

(a)
As explained to us, inventories have been physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b)
In our opinion and according to the information and explanations given to us, the procedures of physical verification
of inventories followed by the management are reasonable and adequate in relation to the size of the company and
the nature of its business.
(c)
In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper
records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management
as compared to book records.
The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register
maintained under Section 189 of the Act and accordingly,
Clause (iii) of Para 3 of the Order is not applicable to the Company.
(iv)
In our opinion and according to the information and explanations given to us, there is generally an adequate internal control
procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories and
fixed assets and for sale of goods. The activities of the company currently do not involve sale of services. During the course
of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.
(v)
According to the information and explanations given to us, the Company has not accepted any deposits from the public
and accordingly, the provisions of Clause (v) of Para 3 of the Order are not applicable to the company.
(vi)
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 (1) of section 148 of the Act, related to manufacture of
specialty petroleum products and are of the opinion that prima facie, the prescribed accounts and records have been made
and maintained.
54
(viii) In respect of statutory dues:

(a)
According to the information and explanations given to us and on the basis of our examination of the records of the
Company, undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, cess and any other statutory dues have
generally been regularly deposited during the year by the Company with the appropriate authorities. According to
the information and explanations given to us there were no outstanding statutory dues as on 31 March 2015 for a
period of more than six months from the date they became payable.
(b)
According to the information and explanations given to us, there are no amounts payable in respect of income tax,
wealth tax, sales tax and value added tax which have not been deposited on account of any disputes except:
Name of the
Statute
Nature of Dues
Amount
(` in lakhs)
Period to which the

amount relates
Finance
Act,1994
Service Tax and

Penalty
58.25 FY 2007-08 to FY
2011-12
Commissioner of Central Excise (Appeals) IV, Mumbai
Finance
Act,1994
Service Tax
22.46 FY 2012-13
Addl. Commissioner, Service Tax 1,

Mumbai
Custom Act,
1962
Custom Duty, Fine

and Penalty
Central Excise
Act, 1944
Central Excise Duty
73.90 April 2009 to November

2013
Commissioner of Central Excise, Daman
Central Excise
Act, 1944
Central Excise Duty
25.74 December 2013 to

October 2014
Joint Commissioner of Central Excise,

Daman
126.701 FY 2011-12
Forum where dispute is

pending
CESTAT, Mumbai
Net of amounts paid under protest
(c)
According to the information and explanations given to us, the amounts which were required to be transferred to
the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956
(1 of 1956) and rules made there under has been transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of the financial year. Further, the Company has not incurred
any cash losses during the financial year covered by our audit and in the immediately preceding financial year.
(ix)
Based on our audit procedures and on the information and explanations given by the management, we are of the opinion
that, the Company has not defaulted in repayment of dues to its bankers. The Company did not have any borrowings from
financial institutions or debenture holders.
(x)
The Company has given guarantee for loan taken by other from a bank or financial institution. According to the information
and explanations given to us, we are of the opinion that the terms and conditions thereof are not prima facie prejudicial to
the interest of the Company.
(xi)
According to the information and explanations given to us and the records examined, the term loans taken by the Company
have been applied for the purpose for which they were obtained.
(xii)
Based on the audit procedures performed and information and explanations given to us, we report that no material fraud
on or by the Company has been noticed or reported during the year.


CA. Virag Shah

Partner
55
BALANCE SHEET AS AT 31 MARCH 2015

Particulars
Notes
Equity and liabilities

Shareholders funds
Share capital
Reserves and surplus
31 March 2015
` In lakhs
31 March 2014
` In lakhs
806.57
22,963.05
806.57
22,590.80
23,769.62
23,397.37
297.89
-
251.46
-
297.89
251.46
2,445.08
18,023.91
495.88
1,008.59
1,678.04
17,348.21
455.89
803.37
21,973.46
20,285.51
46,040.97
43,934.34
7,639.18
5,188.97
22.47
0.09
7,661.89
5,188.97
31.73
19.34
12,850.71
12,901.93
15,299.01
14,865.41
1,157.53
1,846.71
21.60
13,098.75
13,309.22
2,413.56
2,184.47
26.41
33,190.26
31,032.41
46,040.97
43,934.34
3
4
Non-current liabilities
Deferred tax liabilities (net)
Long-term provisions
5
6
Current liabilities
Short-term borrowings
Trade payables
Other current liabilities
Short-term provisions
7
8
8
6
TOTAL
Assets
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Non-current investments
Long-term loans and advances
Trade receivables
Other non-current assets
9
10
11
12
13.1
13.2
Current assets
Inventories
Trade receivables
Cash and bank balances
Short-term loans and advances
Other current assets
14
13.1
15
12
13.2
TOTAL
Summary of significant accounting policies
Notes to the financial statements
3-48
The accompanying notes are an integral part of the financial statements.

As per our report of even date attached
For and on behalf of the Board of Directors of


Firm Registration No. 101474W
Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
56
PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH 2015
Particulars
Notes
31 March 2015
` In lakhs
31 March 2014
` In lakhs
79,188.34
64,546.53
6,206.40
5,409.47
72,981.94
59,137.06
Income
Revenue from operations (gross)
16
Less : excise duty

Revenue from operations (net)
Other income
113.19
121.22
73,095.13
59,258.28
17
Total (I)
Expenses
Cost of material consumed
18
64,559.09
51,786.29
Purchase of traded goods
19
1,159.61
1,314.36
(Increase)/decrease in inventories of traded goods and finished goods
20
389.92
(495.32)
Employee benefits expense
21
401.59
359.67
Other expenses
22
3,836.80
3,429.84
70,347.01
56,394.84
2,748.12
2,863.44
Total (II)
Earnings before interest, tax, depreciation and amortization
(EBITDA) (I)-(II)
Depreciation and amortization expense
23
284.99
249.56
Finance costs
24
702.37
569.02
1,760.76
2,044.86
Current tax
369.09
429.00
MAT credit utilised / (entitlement)
184.28
47.66
60.99
30.62
(229.47)
(2.80)
Profit/(loss) before tax

Tax expenses
Deferred tax
Short/(excess) provision of tax relating to earlier years
Total tax expense
384.89
504.48
1,375.87
1,540.38
Basic
` 3.41
` 3.66
Diluted
` 3.41
` 3.66
Profit/(loss) for the year

Earnings per equity share [nominal value of share ` 2 (31 March 2014 ` 10)]
35,45
Notes to the financial statement
3-48



Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
57
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015

1.
Company Information
Panama petrochem Limited (the Company) is a public limited Company docimiciled in India. The registered
office of the Company is at Plot No. 3303, GIDC Estate, Ankleshwar 393002, Gujarat, India and corporate office at
401, Aza House, Turner Road, Bandra West, Mumbai 400050. The Company was incorporated on 9 March 1982.
The Company is engaged in the manufacture of specialty petroleum products for diverse user indstries like printing,
textiles, rubber, pharmaceuticals, cosmetics, power and other industrial oil.
2.
Basis of preparation and Significant Accounting Policies
2.1 Basis of Preparation of Financial Statements
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles
in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects the
relevant provisions of the Companies Act, 2013 (the Act) and with the Accounting Standards notified by the Companies
(Accounts) Rules, 2014. The financial statements have been prepared under the historical cost convention.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
2.2 Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure
of contingent liabilities at the end of the reporting period. Although these estimates are based upon managements
best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.
2.3 Current / Non-current classification:
The Schedule III to the Act requires assets and liabilities to be classified as either Current or Non-current.
An asset is classified as current when it satisfies any of the following criteria:
(i) it is expected to be realised in, or is intended for sale or consumption in, the Companys normal operating cycle;
(ii) it is held primarily for the purpose of being traded;
(iii) it is expected to be realised within twelve months after the reporting date; or
(iv) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting date.
All other assets are classified as non-current.
A liability shall be classified as current when it satisfies any of the following criteria:
(i) it is expected to be settled in, the Companys normal operating cycle;
(iii) it is due to be settled within twelve months after the reporting date; or
(iv) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months
after the reporting date. Terms of a liability that could, at the opinion of the counterparty, result in its settlement
by the issue of equity instruments do not affect its classification.
All other liabilities are classified as non-current.
2.4 Measurement of EBITDA
As permitted by the Schedule III to the Act, the Company has elected to present earnings before interest, tax, depreciation
and amortization (EBITDA) as a separate line item on the face of the Profit and Loss Statement. The Company measures
EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the Company does not include
depreciation and amortization expense, finance costs and tax expense.
58

2.5 Inventories
Inventories are valued as follows:
Raw materials
Lower of cost or net realizable 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 First In First Out (FIFO) basis.
Cost of raw materials comprises of cost of purchase (net of discount) and
other cost in bringing the inventory to their present location and condition
excluding Cenvat credit / Countervailing duty. Customs duty on stock lying
in bonded warehouse is included in cost.
Work-in-progress
and Finished goods
Lower of cost and net realizable value. Cost includes direct materials and
labour and a proportion of manufacturing overheads based on normal
operating capacity. Cost of finished goods includes excise duty. Cost is
determined on a First In First Out (FIFO) basis.
Net realizable 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.
2.6 Cash and Cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and shortterm investments with an original maturity of three months or less.
2.7 Fixed Assets

a)
Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing
costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition
for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the
future benefits from the existing asset beyond its previously assessed standard of performance. All other
expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of
replacing parts, are charged to the Profit and Loss Statement for the period during which such expenses are
incurred.
Gains or losses arising from derecognition of fixed assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the Profit and Loss Statement
when the asset is derecognized.
b) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Intangible assets namely computer software is amortized at the rate of 33.33 % on a straight line basis over
the estimated useful economic life.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the Profit and Loss
Statement when the asset is derecognized.
2.8 Depreciation/Amortization on Fixed Assets

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives
prescribed under the Schedule II to the Act.
Leasehold land is amortized on a straight line basis over the period of lease.
2.9 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. The following specific recognition criteria must also be met before revenue is
recognized:
59

Sale of Goods
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.
The Company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these
are not economic benefits flowing to the Company. Hence, they are excluded from revenue. Excise duty deducted
from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability
arising during the year.
Interest
Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate
applicable. Interest income is included under the head other income in the Profit and Loss Statement.
Dividends
Revenue is recognized when the shareholders right to receive payment is established by the reporting date.
2.10 Foreign currency translation
(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 retranslated using the exchange rate prevailing at the reporting date.
Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are
reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at
fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate
at the date when such value was determined.
(iii) Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting such 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 recognized as income or as expenses in the year in which they arise.
(iv) Forward Contracts

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or
income over the life of the contract. Exchange differences on such contracts are recognized in the Profit and
Loss Statement in the year in which the exchange rates change. Any profit or loss arising on cancellation or
renewal of forward exchange contract is recognized as income or as expense for the year.
2.11 Investments
Investments that are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as long-term
investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value determined on an
individual investment basis.
Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a
decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the Profit and Loss Statement.
60

2.12 Retirement and other employee benefits
Post Retirement Benefits
i. Defined Contribution Plans
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 contributions to the respective fund are due. There
are no other obligations other than the contribution payable to the respective fund.
ii. Defined Benefit Plans
Gratuity liability is a defined benefit obligation. The costs of providing benefits under this plan is determined on
the basis of actuarial valuation at each year-end using the projected unit credit method.
Actuarial gains and losses for the defined benefit plan are recognized in full in the period in which they occur in
the Profit and Loss Statement.
2.13 Borrowing Costs
Borrowing costs includes interest, amortization of ancillary costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost.
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 cost of the
respective asset. All other borrowing costs are expensed out in the period they occur.
2.14 Segment Reporting 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.
2.15 Leases
Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item,
are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss
account on a straight-line basis over the lease term.
Company is the lessor
Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an
operating lease is recognized in the Profit and Loss Statement on a straight-line basis over the lease term. Costs,
including depreciation, are recognized as an expense in the Profit and Loss Statement. Initial direct costs such as
legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Statement.
2.16 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 year.
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.
2.17 Taxes on Income
Tax expense comprises of current and deferred tax. Current income tax is 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.
61

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 recognized 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 realized. In situations where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence
that they can be realized against future taxable profits.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down
the carrying amount of a 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
realized. 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.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current
tax. The Company recognizes MAT credit available as an asset only to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period, i.e., the period for which
MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as
an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum
Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the Profit and
Loss Statement and shown as MAT Credit Entitlement. The Company reviews the MAT Credit Entitlement asset
at each reporting date and writes down the asset to the extent the Company does not have convincing evidence
that it will pay normal tax during the sufficient period.
2.18 Impairment of tangible and intangible assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets
recoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units (CGU) net
selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset
does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where
the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount. 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 the risks specific to the asset. In determining net selling price, recent market transactions are taken
into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
2.19 Provisions
A provision is recognized 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
2.20 Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.
62

3.
Share capital
31 March 2015
` In lakhs
31 March 2014
` In lakhs
2,555.00
2,555.00
806.57
806.57
806.57
806.57
Authorized share capital

12,77,50,000 (31 March 2014 : 2,55,50,000 of ` 10 each) equity shares of ` 2 each
Issued, subscribed and fully paid-up share capital
4,03,29,065 (31 March 2014 : 80,65,813 of ` 10 each) equity shares of ` 2 each
a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
31 March 2015
31 March 2014
No. of shares
` In lakhs
No. of shares
` In lakhs
8,065,813
806.57
8,607,570
860.75
32,263,252
(541,757)
(54.18)
40,329,065
806.57
8,065,813
806.57
Equity shares
Share split during the year (Refer note 35)
Buy-back of shares during the year (Refer note 36)
Outstanding at the end of the year
b. Terms/rights attached to equity shares
The company has only one class of equity shares having a par value of ` 2 per share (2014: ` 10 per share). Each holder
of equity shares is entitled to one vote per share, however the holders of global depository receipts (GDRs) do not have
any voting rights in respect of shares represented by the GDRs till the shares are held by the custodian bank (Refer
Note 35). The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General Meeting.
The amount of per share dividend recognized as distributions to equity shareholders is ` 2 (face value ` 2) [31 March
2014 : ` 6 (face value ` 10)]
In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets in proportion
to the number of equity shares held by the shareholders.
c. For the period of five years immediately preceding the reporting date:
31 March 2015
` In lakhs
31 March 2014
` In lakhs
Equity shares allotted in pursuant to the scheme of amalgamation of Monaco

Petroleum Private Limited [Face value ` 2 (31 March 2014 : ` 10)]
1,608,750
321,750
Equity shares allotted in pursuant to the scheme of amalgamation of Mobil

Petrochem Private Limited [Face value ` 2 (31 March 2014 : ` 10)]
5,391,200
1,078,240
553,522
553,522
Aggregate number of :
Equity shares bought back by the Company [Face value ` 10]

d. Details of shareholders holding more than 5% shares in the company

31 March 2015
31 March 2014
No. of shares
% holding in
the class
No. of shares
% holding in
the class
2,788,275
6.91%
557,655
6.91%
12,286,725
30.47%
2,457,345
30.47%
Equity Shares of ` 2 (31 March 2014 : ` 10) each

fully paid up (Refer note 35)
Ms. Shelina Arifali Rayani
Shares held by Custodian as against which global
depository receipts have been issued (Citi Bank N.A.)
63

4.

31 March 2015
` In lakhs
31 March 2014
` In lakhs
0.24
0.24
0.24
0.24
55.36
1.18
Other Reserves
Investment Allowance Reserve
Balance as per the last financial statements
Capital Redemption Reserves

54.18
55.36
55.36
9,366.42
9,377.91
Add : Premium on issue of GDR (Refer Note 37)
Less : Expense incurred on issue of GDR (Refer Note 37)
(11.49)
9,366.42
9,366.42
1,048.65
1,612.52
137.59
154.04
28.25
(717.91)
1,157.99
1,048.65
12,120.13
11,346.82
1,375.87
1,540.38
(7.34)
Proposed final equity dividend [amount per share ` 2 (31 March 2014 ` 6)]
806.58
483.95
Tax on proposed final equity dividend
168.78
82.25
54.18
137.59
154.04
1,112.95
767.08
Net surplus in the profit and loss statement
12,383.05
12,120.13
Total reserves and surplus
22,963.05
22,590.80
Add : Transfer from profit and loss statement on buy back of shares
Securities Premium Account
General reserve
Add : amount transferred from surplus balance in the profit & loss statement
Less : Adjustment relating to fixed assets as per Companies Act, 2013
(net of defered tax ` 14.55 lakhs) (Refer note no. 9.4)
Less : Premium paid on buy back of equity shares
Surplus/(deficit) in the profit and loss statement

Balance as per last financial statements
Add : Profit for the year
Less : Appropriations
Dividend of previous year written back of shares bought back
Transfer to capital redemption reserve on buy back of shares

Transfer to general reserve
Total appropriations
64

5.
Deferred tax liabilities (Net)

31 March 2015
` In lakhs
31 March 2014
` In lakhs
Fixed assets: Impact of difference between tax depreciation and depreciation/

amortization charged for the financial reporting
348.14
301.17
Gross deferred tax liability
348.14
301.17
18.72
62.07
31.53
(12.36)
50.25
49.71
297.89
251.46
Deferred tax liability
Deferred tax asset

Impact of expenditure charged to the profit and loss statement in the
Current year but allowed for tax purposes on payment basis
Provision for doubtful debts
Net deferred tax liability

6.
Provisions
Long-term
31 March 2015
` In lakhs
Short-term
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
Provision for employee benefits

-
31.41
12.14
31.41
12.14
Provision for Income Tax [Net of taxes paid : N.A.

(31 March 2014: ` 1486.23)]
222.77
Proposed equity dividend
806.58
483.95
Provision for tax on proposed equity dividend
168.78
82.25
Provision for Wealth Tax [Net of taxes paid :

` 2.26 (31 March 2014: ` 1.53)]
1.82
2.26
977.18
791.23
1,008.59
803.37
2,445.08
1,678.04
2,445.08
1,678.04
Provision for gratuity (Note 41)

Other provisions
7.
Secured borrowings
Cash credit from banks
Terms of Securities and repayment
Cash credit from banks is secured against the hypothecation of Stocks, Book debts and Plant & Machineries (both
present & future), Pledge of Fixed Deposit Receipts, Further secured by Equitable Mortgage of Companys present
Immoveable Property situated at Ankleshwar, Daman, Marol industrial estate, property of group companies situated at
Navi Mumbai, property belonging to the Directors and corporate gurantee given by Anirudh Distributors Private Limited
(Refer Note 43). The cash credit is repayable on demand and carried an interest rate of 12% to 16% p.a
65

8.
Current liabilities
31 March 2015
` In lakhs
31 March 2014
` In lakhs
18,023.91
17,348.21
17.10
23.53
19.34
17.45
Statutory Dues payable
442.28
267.97
Forward Contract (net)
128.46
16.16
17.48
1.00
1.00
495.88
455.89
18,519.79
17,804.10
Trade payables
(Refer note 29 for details of dues to micro and small enterprises)
Creditors for capital goods
Investor Education and Protection Fund will be
credited by following
amount (as and when due)
Unpaid dividend
Other payables
Advance received against orders

Deposits
66
67
Other adjustments
At 31 March 2015
2,428.74
2,455.67
291.66
33.86
1,046.27
1,086.65
259.16
40.38
218.78
43.91
174.87
1,305.43
1,305.43
39.89
1,265.54
Factory
Building
1,235.42
At 31 March 2015
38.12
41.58
Depreciation
For the year
233.43
195.31
Accumulated
Depreciation
1,001.99
1,040.11
Net Block
35.69
35.69
At 31 March 2014
At 31 March 2015
0.58
0.53
5.58
5.05
30.11
30.64
4.14
37.30
58.72
16.38
28.53
13.81
2.03
11.78
62.86
11.75
51.11
6.96
44.15
Office
Equipment
5.34
14.70
60.17
3.79
8.77
47.61
5.19
42.42
65.51
3.20
62.31
3.10
59.21
Computers
164.27
185.68
89.99
28.49
61.50
15.12
46.38
254.26
7.08
247.18
4.88
242.30
Furniture
and fixtures
240.78
293.39
197.76
(3.39)
52.27
5.50
143.38
(22.96)
36.30
130.04
438.54
(6.81)
8.58
436.77
(32.85)
129.00
340.62
Vehicles
7,639.18
7,661.89
1,672.61
(3.39)
284.99
42.80
1,348.21
(22.96)
249.56
1,121.61
9,311.79
(6.81)
308.50
9,010.10
(32.85)
624.34
8,418.61
Total
` in lakhs
9.4 Adoption of useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013
Effective from 1 April, 2014 the Company has charged depreciation based on revised remaining useful life of the
assets as per the requirement of Schedule II of the Companies Act 2013 as per para 7(b) of notes to part C. Based on
transitional provision provided in note 7(b) to Schedule II, where the remaining useful life of an asset is nil the carrying
amount of the asset should be recognised in the retained earnings. Such carrying amount as on 1 April, 2014 for the
Company was ` 28.25 Lakhs (net of deferred tax ` 14.55 Lakhs).
a) Addition to fixed assets includes capital assets of ` Nil ( 31 March 2014 : ` 0.89 lakh)
b) Gross block includes fixed assets in research & development (R&D) unit
Furniture ` 4.08 lakhs ( 31 March 2014 : ` 4.08 lakhs)
Lab Equipments ` 53.15 lakhs ( 31 March 2014 : ` 53.15 lakhs)
Computer ` 00.55 lakh ( 31 March 2014 : ` 00.55 lakh)
Air Conditioner ` 1.14 lakhs ( 31 March 2014 : ` 1.14 lakhs)
1,493.18
1,315.30
566.62
72.13
494.49
74.33
420.16
2,059.80
250.01
1,809.79
339.55
1,470.24
Plant &
Equipment
9.3 Capital expenditure on research & development
2,250.27
2,267.01
148.53
37.69
110.84
38.76
72.08
2,398.80
20.95
2,377.85
2,377.85
Non Factory
Building
9.2 Non Factory Building includes those constructed on leasehold land:
1,235.42
At 31 March 2014
Gross Block
9.1 Factory Building includes those constructed on leasehold land:
Notes:-
6.19
6.19
At 31 March 2014
At 31 March 2015
Net Block
Charge for the year
At 31 March 2014
257.80
Other adjustments
Adjustments as per
the Companies Act,
2013 (Refer note 9.4)
33.92
Charge for the year
223.88
2,720.40
6.93
2,713.47
100.96
2,612.51
Leasehold
Land
At 1 April 2013
Depreciation
6.19
Other adjustments
At 31 March 2015
Additions
6.19
Other adjustments
At 31 March 2014
6.19
Freehold
land
Additions
At 1 April 2013
Cost or valuation
09. Tangible Assets


10. Intangible Assets
31 March 2015
` In lakhs
31 March 2014
` In lakhs
7.11
7.11
Software
Cost or valuation
At 1 April 2013
Additions
Disposals
At 31 March 2014
Additions
At 31 March 2015
7.11
7.11
7.11
7.11
7.11
7.11
Depreciation
At 1 April 2013
Charge for the year
Disposals
At 31 March 2014
Charge for the year
At 31 March 2015
7.11
7.11
7.11
7.11
Net Block
At 31 March 2014
At 31 March 2015
0.19
0.19
0.98
0.98
2.18
2.18
5,185.62
5,185.62
5,188.97
5,188.97
5186.79
5186.79
Aggregate amount of quoted investments
2.18
2.18
Market Value
6.89
3.78
11. Non-current investments

Non Trade investments (valued at cost unless stated otherwise)

Unquoted Equity Instruments
1,850 (31 March 2014 : 1,850) fully paid equity shares of `.10 each of
Bharuch Enviro Infrastructure Limited
975 (31 March 2014 : 975) Fully paid equity shares of ` 100 each of
The Marol Co operative Industrial Estate Limited
Quoted equity instruments
6,200 (31 March 2014 : 6,200) fully paid equity shares of face value of ` 10 each of
DCB Bank Limited (formally Development Credit Bank Limited)
Trade investments (valued at cost unless stated otherwise)
33,018 (31 March 2014 : 33,018) Fully Paid Equity Shares of AED 1,000 each
of Panol Industries RMC FZE, UAE
Aggregate amount of unquoted investments
68

12. Loans and advances
Non -current
Current
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
2.01
12.00
2.01
12.00
13.58
13.58
76.57
107.09
13.58
13.58
76.57
107.09
440.26
256.47
440.26
256.47
Capital advances
Unsecured, considered good
(A)
Security deposit
(B)
Advances recoverable in cash or kind
(C)
Other loans and advances
(Unsecured, considered good)
Prepaid expenses
113.14
115.74
Current tax [net of provision for tax ` 1058.09

lakhs] (2014 : N.A.)
25.54
MAT credit entitlement (Refer note 46)
76.62
264.00
Interest receivable from subsidiary (Refer note 43)
6.65
Receivable against expenses incurred on behalf

(Refer note 43)
10.63
6.88
6.15
8.32
8.14
1,095.63
1,426.38
6.88
6.15
1,329.88
1,820.91
22.47
31.73
1,846.71
2,184.47
530.36
368.14
Doubtful
94.80
112.51
625.16
480.65
94.80
112.51
530.36
368.14
14,335.05
12,941.08
14,335.05
12,941.08
14,865.41
13,309.22
Loan to employees
Balance with statutory/government authorities
(D)
Total (A+B+C+D)
13. Trade receivables and other assets

13.1 Trade receivables
Unsecured, considered good unless stated otherwise
Outstanding for a period exceeding six months from
the date they are due for payment
Provision for doubtful receivables

(A)
Outstanding for a period less than six months from

(B)
Total (A+B)
69

13.2 Other assets
Non -current
Balance with banks in deposit accounts

(Refer Note 15)
Current
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
0.09
10.15
12.79
12.79
9.19
21.60
13.62
9.19
21.60
13.62
0.09
19.34
21.60
26.41
31 March 2015
` In lakhs
31 March 2014
` In lakhs
(A)
Unamortized expenditure
Unamortized premium on forward contract
(B)
Others
Interest accrued on fixed deposits
(C)
Total (A+B+C)
14. Inventories (valued at lower of cost and net realizable value)
14,161.25
11,602.73
Finished Goods (Refer Note 20)
531.17
888.33
Traded Goods (Refer Note 20)
467.30
500.06
Raw Material (Refer Note 18) [Includes Goods In transit ` 216.95, 31 March 2014: ` 284.04]
Packing Material (Refer Note 18) [Includes Goods In transit ` Nil, 31 March 2014: ` 5.63]
139.29
107.63
15,299.01
13,098.75
15. Cash and bank balances

Non -current
Current
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
In current accounts
713.31
1,990.92
In deposits accounts with original maturity of

less than three months
100.00
In unpaid dividend account
19.34
17.45
1.64
4.78
734.29
2,113.15
Deposits with original maturity for more than

12 months
0.09
10.15
3.24
Deposits with original maturity for more than

3 months but less than 12 months
420.00
300.41
0.09
10.15
423.24
300.41
(0.09)
(10.15)
423.24
300.41
1,157.53
2,413.56
Cash and cash equivalents

Balance with banks:
Cash on hand
(A)
Other bank balances
Amount disclosed under "non current assets"

(Refer Note 13.2)
(B)
Total (A+B)
70

16. Revenue from operations
31 March 2015
` In lakhs
31 March 2014
` In lakhs
77,890.45
62,971.95
1,297.89
1,574.58
79,188.34
64,546.53
6,206.40
5,409.47
72,981.94
59,137.06
Revenue from operations

Sale of products
Finished Goods
Traded Goods
Other Operating revenue
Less : Excise duty #
# Excise duty on sales amounting to ` 6,206.40 lakhs (31 March 2014 : ` 5,409.47 lakhs) has been reduced from sales
in profit and loss statement and excise duty on increase/(decrease) in stock amounting to ` (24.94) lakhs (31 March
2014 : ` 39.54 lakhs) has been considered as expense/(income) in note 22 of the financial statements.
Details of products sold
Finished Goods
Panoil
Others
72,905.15
58,309.00
4,985.30
4,662.95
77,890.45
62,971.95
1,117.58
1,530.90
180.31
43.68
1,297.89
1,574.58
56.36
48.19
1.00
41.70
0.03
0.04
17.71
Traded goods
Wax
Others
17. Other income

Interest income on
Bank deposits
Others
Dividend income on
Long - term investment
Reversal of provision for doubtful debts
0.82
37.27
31.29
113.19
121.22
Inventory at the beginning of the year
11,602.73
11,837.92
Add : Purchases
65,237.79
50,426.41
76,840.52
62,264.33
Less : Inventory at the end of the year
14,161.25
11,602.73
Cost of raw material consumed
62,679.27
50,661.60
Net proceeds from claim of insurance on theft of fixed asset

Others
18. Cost of material consumed

Raw material consumed
71

31 March 2015
` In lakhs
31 March 2014
` In lakhs
107.63
55.47
1,911.48
1,176.85
2,019.11
1,232.32
139.29
107.63
1,879.82
1,124.69
64,559.09
51,786.29
Packing material consumed

Add : Purchases
Cost of packing material consumed
Total material consumed
Details of raw material consumed
Base Oil
47,967.35
37,891.66
Others
14,711.92
12,769.94
62,679.27
50,661.60
14,161.25
11,602.73
139.29
107.63
14,300.54
11,710.36
` In lakhs
31 March 2014
Details of inventory
Base oil & Wax
Packing material

Imported and indigenous raw materials consumed

% of total
consumption
31 March 2015
31 March 2015
% of total
consumption
31 March 2014
Imported
84%
52,854.38
79%
39,954.68
Indigenous
16%
9,824.89
21%
10,706.92
100%
62,679.27
100%
50,661.60
1,153.23
1,282.08
6.38
32.28
1,159.61
1,314.36
31 March 2015
31 March 2014
(Increase)/decrease
` In lakhs
` In lakhs
31 March 2014
` In lakhs
Traded goods
467.30
500.06
32.76
Finished goods
531.17
888.33
357.16
998.47
1,388.39
389.92
Traded goods
500.06
618.83
118.77
Finished goods
888.33
274.24
(614.09)
1,388.39
893.07
(495.32)
389.92
(495.32)
` In lakhs
Consumption of raw materials includes consumption on account of manufacturing of samples

19. Purchase of traded goods
Wax
Others
20. (Increase)/decrease in inventories of traded goods and finished goods
Inventories at the end of the year
Inventories at the beginning of the year
31 March 2014
72

Details of inventory of traded goods and finished goods
31 March 2015
` In lakhs
31 March 2014
` In lakhs
467.30
500.06
467.30
500.06
531.17
888.33
531.17
888.33
359.29
336.88
Contribution to provident and other funds
16.64
11.59
Gratuity expense (note 41)
19.27
5.71
6.39
5.49
401.59
359.67
Power and fuel
56.03
56.58
Water charges
3.46
2.88
(24.94)
39.54
Buildings
43.27
9.67
Machinery
49.64
37.29
Traded goods
Wax & Others
Finished Goods
Panoil
21. Employee benefit expense
Salaries, wages and bonus
Staff welfare expenses

22. Other expenses
Increase/(decrease) of excise duty on inventory

Repairs and maintenance
37.12
34.80
105.15
77.60
Rent
53.72
47.45
Rates and taxes
31.32
6.76
Communication costs
32.71
29.85
Legal and professional fees
96.66
73.44
Payment to auditor (Refer details below)
12.00
12.50
5.10
2.60
Others
Insurance
Director sitting fees
1,735.34
1,073.75
Freight outwards
666.46
571.66
Travelling and conveyance
181.76
191.02
68.50
45.24
161.09
142.52
Clearing and forwarding expenses
Advertising and sales promotion

Brokerage and commission
Security charges
25.68
18.89
Bad debts and sundry balances written off
50.72
175.58
99.73

Donation and charity (Refer note 38)
59.73
72.10
Premium on forward exchange contract amortized
12.79
190.94
182.67
258.10
3.50
190.82
155.85
3,836.80
3,429.84
Exchange loss (net)

Loss on sale of assets
Miscellaneous expenses
73

Payment to auditor (excluding service tax)
31 March 2015
` In lakhs
31 March 2014
` In lakhs
11.00
10.00
1.00
1.00
As auditor:
Statutory audit and limited review fees
Tax audit fees
1.50
12.00
12.50
284.99
249.56
In other capacity
23. Depreciation and amortization expense

Depreciation of tangible assets (Refer note 9)
284.99
249.56
Interest
343.91
293.29
Bank charges
358.46
275.73
702.37
569.02
i) Service tax Matter disputed with the Deputy Commissioner of Service Tax
(Dispute regarding demand raised on service tax payable on interest on usance
charges for the period September 2008 to March 2013)
80.71
58.25
ii) Excise duty Matter disputed with the Commissioner of Central Excise, Customs
& Service Tax, Daman,(Dispute regarding demand raised on excise duty not
recovered on freight charged to customers)
99.64
99.64
iii) Custom duty Matter disputed Customs,Excise and Service Tax Appellate
Tribunal, Mumbai, (Dispute regarding demand raised for classification of product)
126.70
126.70
iv) Bank Gurantees
546.17
339.60
2.36
8.00
Amortization of intangible assets (Refer note 10)
24. Finance costs
25. Contingent Liabilities
(The contingent liabilities, if materialized, shall entirely be borne by the company,

as there is no likely reimbursement from any other party.)
26. Capital and other commitments
Estimated amount of contracts remaining to be executed
on capital account and not provided for (net of advances)
27. Current Liabilities & Provisions
In the opinion of the Board, adequate provision has been made for all known liabilities and the same is not in excess of
the amounts considered reasonably necessary.
28. Current assets, loans and advances
In the opinion of the Board, the current assets, loans and advances have value on realization in the ordinary course of
business, at least equal to the amount at which they are stated in the Balance Sheet.
29. Details of dues to micro and small enterprises as defined under the MSMED Act 2006 *
a. The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year
- Principal amount due to micro and small enterprises
- Interest due on above
b. The amount of interest paid by the buyer in terms of section 16 of the Micro and
Small enterprise Development Act, 2006, along with the amounts of the payment
made to the supplier beyond the appointed day during each accounting year.
74

31 March 2015
` In lakhs
31 March 2014
` In lakhs
c. The amount of interest due and payable for the period of delay in making payment
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under Micro and Small Enterprise Development Act,
2006.
d. The amount of interest accrued and remaining unpaid
at the end of each
accounting year;
e. The amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the
small enterprise for the purpose of disallowance as a deductible expenditure
under section 23 of the Micro and Small Enterprise Development Act, 2006.
*The company has initiated the process of identification of suppliers registered under Micro and Small Enterprise
Development Act, 2006, by obtaining confirmations from all suppliers. Information has been collated only to the extent
of information received as at the balance sheet date.
30. Value of imports calculated on CIF basis (accrual)
31 March 2015
` In lakhs
31 March 2014
` In lakhs
50,705.63
35,729.71
1,358.71
1,580.79
52,064.34
37,310.50
31 March 2015
` In lakhs
31 March 2014
` In lakhs
57.88
31.36
Bank Interest
119.71
128.08
Bank Charges
56.53
43.32
Travelling Expenses
18.65
Others
18.60
4.10
Raw materials (Includes Goods in transit)

Traded goods
31. Expenditure in foreign currency (accrual basis)
Brokerage & Commission
Expenses related to GDR issue (adjusted against securities premium) (Refer note 37)
11.49
271.37
218.35
April 1, 2014 to
31 March 2015
April 1, 2013 to
31 March 2014
32. Net dividend remitted in foreign exchange

Period to which it relates
Number of non resident shareholders
Number of equity shares in lakhs held on which

dividend was due
Amount remitted in US $
28,103.44
20,223.82
28,103.44
20,223.82
33. Earnings in foreign exchange (accrual basis)

Exports at F.O.B Value
75

34. Derivative Instruments and unhedged foreign currency exposure
a) Forward contract outstanding as at Balance Sheet date
` In lakhs
Particulars
Purpose
Forward Contract to buy US $

US $ Nil lakhs ( 31 March 2014: US $ 37.87 lakhs)
` Nil lakhs (31 March 2014: ` 2,276.07 lakhs)
Hedge of expected future payments to trade

payables
b) Particulars of unhedged foreign currency exposure as at the reporting date

31 March 2015
$ In lakhs
31 March 2015
` In lakhs
31 March 2014
$ In lakhs
31 March 2014
` In lakhs
77.00
4,894.10
58.64
3,524.49
0.22
13.90
1.14
68.50
274.07
17,154.41
220.45
13,249.12
Advance to Trade Payables
1.22
76.22
1.92
115.40
Balance with Banks
6.02
376.95
9.11
547.59
Trade Receivables
Trade Payables
35. Shares Split Information
a. Pursuant to resolution passed at the Annual General Meeting of the company held on 4 September 2014, the
Company sub-divided its shares of face value of ` 10 each into five shares of ` 2 each. Accordingly as per resolution,
read with amendments made to Memorandum of Assocation as required by Companies Act, 2013. Authorized share
capital of the company stands at ` 2,555 lakhs i.e. 1,277.5 lakhs shares of ` 2 each as compared to 255.5 lakhs
shares of ` 10 each last year.
b.
Each GDR of the company, representing five equity shares of ` 10 each, post stock split, now has underlying One
GDR representing twenty five equity shares of face value of ` 2 each.
c. Consequently, the earning per share has been restated for the previous year based on the number of equity shares
post split, in accordance with Accounting Standard (AS-20) on Earnings Per Share.
36. In accordance with section 77A, 77AA and 77B of the Companies Act, 1956 and in pursuant to the buy-back announcement
dated 1 March 2013, the Company bought back a total of 5,53,522 Equity Shares during the period 14 February 2013
to 13 February 2014. All the shares have been duly extinguished before 31 March 2014. Consequently, an amount of
` 55.36 lakhs, being the nominal value of equity shares bought back had been transferred to Capital Redemption Reserve
from the Profit and Loss Statement upto 31 March 2014. Further, a total amount of ` 732.61 lakhs being the premium on
buy-back had also been appropriated from General Reserve upto 31 March 2014.
37. Global Depository Receipts (GDRs) issue

On 20 July 2011, the Company raised US $ 1,39,99,985 (` 6,233.79 lakhs) through issuance of 4,91,469 GDRs representing
24,57,345 equity shares of ` 10 each at a price of ` 253.68 per equity share of ` 10 each. The issue price of each GDR is
US $ 28.486 and the GDRs are listed on the Luxembourg Stock Exchange. The holders of GDR do not have voting rights
with respect to the shares represented by the GDRs, but rank pari passu with the existing share holders in all respect
including entitlement of dividend declared. The Company has paid ` Nil (31 March 2014 : ` 11.49 lakhs) on account of
issue expenses towards the issue of Global Depository Receipts , which has been incurred for issue of GDR, and same
has been adjusted against Securities Premium during the previous year.
Given below are the details of utilization of proceeds from issue of Global Depository Receipts
31 March 2015
$ In lakhs
31 March 2014
` In lakhs
3,724.91
I Sources of Funds
Opening Balance in banks in Current Account outside India
Proceeds from issue of GDR's
Issue expenses
Net Proceeds
76
11.49
3,713.42

31 March 2015
$ In lakhs
31 March 2014
` In lakhs
II Utilization of funds
3,713.42
III Unutilized funds
Nil
IV Interim Utilization of Balance Funds

Balance in banks in Current Account outside India #
# After adjustment of exchange gain
38. Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule
VII thereof : ` 57.78 Lakhs is included in donation and charity.
39. Details of loans Given, Investments made and Gurantee Given Covered u/s 186 (4) of the Companies Act, 2013

Coporate Guarantees given by the Company as at 31 March, 2015

Name of the company
Balance as at
Panol Industries RMC FZE, UAE (Bank Gurantee US $ 45 lakhs)
31 March 2015
$ In lakhs
31 March 2014
` In lakhs
2,816.59
0.89
39.69
30.57
39.69
31.46
40. Expenses on Scientific Research

Capital (Refer Note 9.3)
Revenue
41. Employee Benefits

General Description of Defined Benefit plan
Gratuity
The Company operates single type of Gratuity plans wherein every employee is entitled to the benefit equivalent to
fifteen days salary last drawn for each completed year of service depending on the date of joining and eligibility terms.
The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of
continuous service.
The following tables summaries the components of net benefit expense recognized in the profit and loss statement and
the funded status and amounts recognized in the balance sheet for the respective plans.
Profit & Loss Statement
Gratuity
Net Employee Benefit Expense recognized in the employee cost

Current service cost
5.65
5.19
Interest cost on benefit obligation
3.49
3.31
Expected return on plan assets
(3.07)
(3.04)
Net actuarial( gain) / loss recognized in the year
13.22
0.25
Adjustment to the opening fund
(0.02)
Net Benefit Expense
19.27
5.71
10.15
(2.79)
73.90
48.18
Past service Cost
Actual Return on Plan Assets

Balance sheet
Benefit assets/(liability)
Present Value of defined benefit obligation
Fair value of plan assets
42.50
36.04
Plan assets/(liability)
(31.40)
(12.14)
77

Changes in Present Value of Defined Benefit Obligation are as follows:
Gratuity
48.18
41.39
5.65
5.19
Interest cost
3.49
3.30
Opening defined benefit obligation
16.59
(0.53)
Past Service Cost
Benefits paid
(1.17)
73.91
48.18
36.04
33.79
Actuarial (gains) / losses on obligation
Closing defined benefit obligation

Changes in Fair Value of Plan Assets are as follows:
Opening fair value of planned assets
Expected return
3.07
3.04
Actuarial gain / (loss)
3.35
(0.79)
0.02
Contributions by employer
Benefits paid
42.49
36.04
Closing fair value of plan assets
The company expects to contribute ` 3.07 lakhs to gratuity in the next year (31 March 2014: ` 3.04 lakhs)
The major category of plan assets as a percentage of the fair value of total plan assets are as follows:
100%
Policy of Insurance
100%
The principal assumptions used in determining gratuity for the Companys plans are shown below:
Discount rate
Expected rate of return on assets
Age of Retirement
Annual increase in salary cost
7.80%
8.80%
9%
9%
58
58
6%
6%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
The over all expected rate of return on assets is determined based on the market prices prevailing as on that date,
applicable to the period over which the obligation is expected to be settled.
Gratuity:
Amounts for the current and previous four reporting period are as follows
31 March 2015
` In lakhs
31 March 2014
` In lakhs
Defined Benefit Obligation
73.90
48.18
Plan Assets
42.50
36.05
(31.40)
(12.13)
Experience adjustment on plan liabilities (gain)/loss
11.79
1.66
Experience adjustment on plan assets loss/(gain)
(3.35)
0.79
31 March 2013
` In lakhs
31 March 2012
$ In lakhs
31 March 2011
` In lakhs
41.40
32.98
25.98
Surplus/(deficit)

Plan Assets
33.81
30.72
29.64
Surplus/(deficit)
(7.60)
(2.28)
3.65
1.07
1.05
7.42
(0.03)
(1.60)
0.83

78

42. Segment Information

Business Segments :
As the Company is in the business of manufacturing and trading of specialty petroleum products, the Company has
considered petroleum products as the only business segment for disclosure in this context of accounting standard 17.
Geographical Segments :
The following table shows the distribution of the Companys sales by geographical market, regardless of where the goods
were produced:
Year ended 31 March 2015
Within India
Outside India
Total
43,710.92
29,271.02
72,981.94
41,044.71
4,894.10
45,938.81
308.50
308.50
Within India
Outside India
Total
38,242.66
20,894.40
59,137.06
40,145.85
3,524.49
43,670.34
624.34
624.34
Revenue
Sales to external customers
Other segment information
Segment assets
Capital Expenditure:
Additions to tangible & intangible fixed assets (Including CWIP)
Revenue
Segment assets

Notes :
Geographical Segment :
a) For the purpose of geographical segment the sales are divided into two segments - within India and outside India.
b) The accounting policies of the segments are the same as those described in Note 2
43. Related party disclosures as required under AS-18, Related Party Disclosures, are given below:
(a) Names of related parties with whom transactions have taken place during the year
Key Management Personnel
Amirali E Rayani
Amin A Rayani
Samir Rayani
Relatives of key management personnel
Akbarali Rayani (Brother of Mr. Amirali E Rayani)
Vazirali Rayani (Brother of Mr. Amirali E Rayani)
Salimali Rayani (Brother of Mr. Amirali E Rayani)
Arif Rayani (Brother of Mr. Amin Rayani)
Nilima Kheraj (Sister of Mr. Samir Rayani)
Subsidiary
Panol Industries RMC FZE, UAE
Enterprises owned or significantly influenced by key management personnel or their relatives
Anirudh Distributors Private Limited
79

(b) Transactions with Related Parties
31 March 2015
31 March 2014
` In lakhs
` In lakhs
Transaction with Key Managerial Personnel and relatives of Key Managerial Personnel
Remuneration paid to Key Managerial Personnel
Amirali E Rayani
20.00
24.00
Amin A Rayani
17.50
21.00
Samir Rayani
15.00
18.00
Akbarali Rayani
5.40
4.68
Vazirali Rayani
5.40
5.40
Salimali Rayani
5.40
4.68
Nilima Kheraj
5.40
4.69
Arif Rayani
5.40
4.69
Amin A Rayani
6.64
6.64
Samir Rayani
7.84
7.84
Vazir Rayani
1.20
1.20
Arif Rayani
3.06
3.06
Investment in share capital
2,481.88
Advance Given
658.99
Repayment received of Advance given
(658.99)
Interest Income
6.65
2,816.59
47.96
6,500.00
6,500.00
6.65
10.63
Remuneration paid to Relative of Key Managerial Personnel
Payment of Rent
Rent paid to Key Managerial Personnel
Rent paid to Relative of Key Managerial Personnel
Transaction with Subsidiary
Bank Gurantee Given (US $ 45 Lakhs)

Reimbursement of expenses incurred on behalf
Transaction with Enterprises owned or significantly influenced
by key management personnel or their relatives
Corporate gurantee given on behalf of the Company
Balances at the end of the year
Subsidiary :
Interest Receivable
80

44. Leases
31 March 2015
` In lakhs
31 March 2014
` In lakhs
32.26
31.18
Profit after tax attributable to equity shareholders
1,375.87
1,540.38
Net profit for calculation of basic and diluted EPS
1,375.87
1,540.38
No of shares
No of shares
40,329,065
42,047,610
Operating Lease: company as lessee

The Company has entered into arrangements for taking on leave and license basis
certain office premises and warehouses. The specified disclosure in respect of these
agreements is given below :
Lease payments recognized in the profit and loss statement for the year
Notes:
(i) There is no escalation clause in the lease agreement
(ii) There are no restrictions imposed by lease arrangements
(iii) There are no subleases
45. Earnings per share (EPS)
The following reflects the profit and share data used in the basic
and diluted EPS computations :
Weighted average number of equity shares in calculating basic EPS (Refer note no. 35)
Basic Earnings per share
3.41
3.66
Diluted Earnings per share
3.41
3.66
46. Taxation

Minimum Alternate Tax (MAT) :-The Company has during the year, provided the current year tax liability of
` 369.09 lakhs (previous year ` 429 lakhs) calculated in accordance with the normal rate of income of tax. However,
the tax liability for the previous year is calculated as per the provisions of Section 115JAA of the Income Tax Act, 1961.
The MAT credit entitlement of ` 182.25 lakhs has been reversed during the year and ` 76.62 lakhs has been availed for
the year ended 31 March 2015, which is disclosed under Loans and advances.
47. Disclosure as per clause 32 of the Listing Agreement

Particulars in respect of loans and advances to subsidiary companies:

Name of the company
Balance as at
Maximum outstanding
during the year
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
10.63
6.65
37.33
658.99
48. Previous year figures

The company has reclassified previous year figures to conform to this years classification.


Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
81
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015

Particulars
31 March 2015
` In lakhs
31 March 2014
` In lakhs
1,760.76
2,044.86
Depreciation/amortization
284.99
249.56
Provision for bad and doubtful debt
(17.71)
99.73
Unrealized foreign exchange loss/(gain)
266.06
(415.11)
Interest expense
702.37
569.02
Interest income
(57.36)
(89.89)
(0.82)
3.50
Cash Flow from operating activities

Profit before tax
Non-cash adjustment to reconcile profit before tax to net cash flows
Net proceeds from claim of insurance on theft of fixed asset/Loss on Sales of Assets
(0.03)
(0.04)
2,938.26
2,461.62
(Increase)/decrease in Trade Receivables
(1,404.77)
(1,506.29)
(Increase)/decrease in Inventories
Dividend Income
Operating profit before working capital changes
(2,200.26)
(312.29)
(Increase)/decrease in Loans and advances and other assets
195.25
(493.55)
Increase/(decrease) in Trade Payables
244.48
1,786.73
Increase/(decrease) in other liabilities and provisions

Cash generated from/(used in) operations
Direct taxes paid (Net of refunds)
Net cash flow from/(used in) operating activity (A)
63.36
577.65
(163.69)
2,513.87
384.83
264.23
(548.51)
2,249.64
(304.94)
(631.34)
4.24
6.39
(2,481.87)
(112.77)
190.34
(10.63)
(658.99)
658.99
65.22
102.30
Cash flows from investing activities

Purchase of fixed assets, including intangible assets, CWIP and capital advances
Sales of Fixed Assets
Investment in Subsidary
Redemption/maturity of bank deposits (having original maturity of more than
three months)
Advances given to subsidiary
Repayment of Advance given to subsidiary received
Interest received
Dividend received
Net cash flow from/(used in) investing activities (B)
0.03
0.04
(358.85)
(2814.14)
Cash flows from financing activities

Proceeds from issuance of share capital less exp.
(11.49)
Buy back of Shares
(772.09)
767.04
(511.85)
Interest paid
(705.65)
(569.02)
Dividend and tax on dividend paid on Equity Shares
(564.31)
(392.48)
Net cash flow from/(used in) financing activities (C)
(502.92)
(2,256.93)
Proceeds/ (Repayment) from/of short-term borrowing (net)
82
CASH FLOW STATEMENT (CONT......)

Particulars
31 March 2015
` In lakhs
31 March 2014
` In lakhs
(1,410.28)
(2,821.43)
31.42
(100.02)
Net increase/(decrease) in cash and cash equivalents (A+B+C)

Effect of exchange differences on cash & cash equivalents held in foreign currency
Cash and cash equivalents at the beginning of the year
2,113.15
5034.61
Cash and cash equivalents at the end of the year
734.29
2,113.15
1.64
4.78
- on current account
713.31
1,990.92
- on deposit account
100.00
19.34
17.45
734.29
2,113.15
Components of Cash and Cash Equivalents

Cash on hand
With banks
- on unpaid dividend account *

Total Cash and Cash Equivalents (refer note 15)
* The company can utilize these balances only towards the settlement of the
respective unpaid dividend.
Note :
The Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard - 3 Cash
Flow Statements


Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
83
INDEPENDENT AUDITORS REPORT

To the Board of Directors of
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial statements of Panama Petrochem Limited (the Holding Company)
and its subsidiary (the Holding Company and its subsidiary together referred to as the Group), which comprise the Consolidated
Balance Sheet as at 31 March, 2015, the Consolidated Profit and Loss Statement and the Consolidated Cash Flow Statement
for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility on Consolidated Financial Statements
The Holding Companys Board of Directors is responsible for the preparation of these consolidated financial statements in
terms of the requirements of the Companies Act, 2013 (the Act) that give a true and fair view of the consolidated financial
position, consolidated financial performance and consolidated cash flow of the Group in accordance with the accounting
principles generally accepted in India, including Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. The respective Board of Directors of the companies included in the Group
are responsible for maintenance of adequate accounting records in accordance with provisions of the Act for safeguarding
assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and
maintenance of internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of
the consolidated financial statements by the Directors of the Holding Company, as aforesaid
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting
the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Act and Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section (143)(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks
of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Holding Companys preparation of the consolidated financial
statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on whether the Holding Company has an adequate internal financial controls
system over financial reporting in place and the operating effectiveness of such controls. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Holding
Companys Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by other auditors in terms of their reports
referred to in sub-paragraph (a) of the Others Matters paragraph below, is sufficient and appropriate to provide a basis for our
audit opinion on the consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and based on consideration
of the reports of other auditors, on the financial statements of the subsidiary, the aforesaid consolidated financial statements
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, of the consolidated state of affairs of the Group as at 31 March 2015, and
its consolidated profit and consolidated cash flow for the year ended on that date.
Other Matters
a. We did not audit the financial statement of the subsidiary, whose financial statement reflect total assets (net) of
` 8928.06 lakhs as at 31 March 2015, total revenue (net) of ` 7548.85 lakhs and net cash flows amounting to ` 7.39
lakhs for the year ended on that date, as considered in the consolidated financial statements. These financial statements
have been audited by other auditor whose report have been furnished to us by the Management and our opinion on
the consolidated financial statements, in so far as it relates to the amounts and disclosure included in respect of the
subsidiary and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, is based solely on the report
of the other auditor.
84
Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory requirements below, is not
modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditor.
Report on Other Legal and Regulatory Requirements
1.
As required by the Companies (Auditors Report) Order, 2015 as amended (the Order) issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Act, based on the comments in the auditor report of the
Holding Company, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order. The
Order is not applicable to the subsidiary.
2.
As required by section 143(3) of the Act, we report that:

a.
we have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the aforesaid consolidated financial statements;
b.
in our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated
financial statement have been kept so far as it appears from our examination of those books and the reports of the
other auditors;
c.
the Consolidated Balance Sheet, the Consolidated Profit and Loss Statement and the Consolidated Cash Flow
Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of
preparation of the consolidated financial statements;
d.
in our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014;
e.
on the basis of written representations received from the directors of the Holding Company as on 31 March 2015
taken on record by the Board of Directors of the Holding Company, none of the Holding Company directors is
disqualified as on 31 March 2015, from being appointed as a director in terms of Section 164(2) of the Act;
f.
with respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations
given to us:
i.
the consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group - Refer Note 25 to the consolidated financial statements;
ii.
provision has been made in the consolidated financial statements, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative
contracts - Refer Note 34 to the consolidated financial statements;
iii.
there has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Holding Company.


Partner
CA Virag Shah
85
ANNEXURE TO INDEPENDENT AUDITORS REPORT

Referred to in paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of our Report of even date
(i)
In respect of fixed Assets

(a) The Holding Company has maintained proper records showing full particulars, including quantitative details and
situation of fixed assets.
(b) As explained to us, all the fixed assets have not been physically verified by the management during the year but
there is regular programme of verification which, in our opinion, is reasonable having regard to the size of the
Holding Company and the nature of its assets. No material discrepancies were noticed on such verification.
(ii) In respect of its inventories:

(a) As explained to us, inventories have been physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification
of inventories followed by the management are reasonable and adequate in relation to the size of the Holding
Company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records, the Holding Company is generally maintaining
proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the
management as compared to book records.
(iii) The Holding Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in
the register maintained under Section 189 of the Act and accordingly,Clause (iii) of Para 3 of the Order is not applicable
to the Holding Company.
(iv) In our opinion and according to the information and explanations given to us, there is generally an adequate internal
control procedure commensurate with the size of the Holding Company and the nature of its business, for the purchase of
inventories and fixed assets and for sale of goods. The activities of the Holding Company currently do not involve sale of
services. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal
controls has been noticed.
(v) According to the information and explanations given to us, the Holding Company has not accepted any deposits from the
public and accordingly, the provisions of Clause (v) of Para 3 of the Order are not applicable to the Holding Company.
(vi) We have broadly reviewed the books of account maintained by the Holding Company pursuant to the rules made by
the Central Government for the maintenance of cost records under section (1) of section 148 of the Act, related to
manufacture of specialty petroleum products and are of the opinion that prima facie, the prescribed accounts and records
have been made and maintained.
(vii) In respect of statutory dues:
(a) According to the information and explanations given to us and on the basis of our examination of the records of the
Holding Company, undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, cess and any other statutory
dues have generally been regularly deposited during the year by the Holding Company with the appropriate
authorities. According to the information and explanations given to us there were no outstanding statutory dues as
on 31 March 2015 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no amounts payable in respect of income tax,
wealth tax, sales tax and value added tax which have not been deposited on account of any disputes except:
Name of the
Statute
Nature of the
Dues
Amount
(` in lakhs)
Period to which
the amount relates
Forum where
dispute is pending
Finance Act,1994
Service Tax and

Penalty
58.25
FY 2007-08 to FY
2011-12
Commissioner of Central Excise

(Appeals) IV, Mumbai
Finance Act,1994
Service Tax
22.46
FY 2012-13
Addl. Commissioner, Service

Tax 1, Mumbai
Custom Act, 1962 Custom Duty,

Fine and Penalty
126.70 *
FY 2011-12
CESTAT, Mumbai
Central Excise
Act, 1944
Central Excise
Duty
73.90
April 2009 to
November 2013
Commissioner of Central
Excise, Daman
Central Excise
Act, 1944
Central Excise
Duty
25.74
December 2013 to
October 2014
Joint Commissioner of Central

Excise, Daman
* Net of amounts paid under protest
86
(c) According to the information and explanations given to us, the amounts which were required to be transferred to
the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956
(1 of 1956) and rules made there under has been transferred to such fund within time.
(viii) The Holding Company does not have any accumulated losses at the end of the financial year. Further, the Holding
Company has not incurred any cash losses during the financial year covered by our audit and in the immediately
preceding financial year.
(ix) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion
that, the Holding Company has not defaulted in repayment of dues to its bankers. The Holding Company did not have
any borrowings from financial institutions or debenture holders.
(x) The Holding Company has given guarantee for loan taken by other from a bank or financial institution. According to the
information and explanations given to us, we are of the opinion that the terms and conditions thereof are not prima facie
prejudicial to the interest of the Holding Company.
(xi) According to the information and explanations given to us and the records examined, the term loans taken by the Holding
Company have been applied for the purpose for which they were obtained.
(xii) Based on the audit procedures performed and information and explanations given to us, we report that no material fraud
on or by the Holding Company has been noticed or reported during the year.



Partner
CA Virag Shah
87
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2015

Particulars
Notes
31 March 2015
` In lakhs
31 March 2014
` In lakhs
3
4
806.57
24,102.24
806.57
23,088.98
24,908.81
23,895.55
297.89
-
251.46
-
297.89
251.46
4,175.18
18,885.10
497.20
1,008.59
1,678.04
19,019.86
455.89
803.37
Short-term provisions
24,566.07
21,957.16
TOTAL
49,772.77
46,104.17
11,895.38
3.35
680.19
0.09
7,661.89
3,966.96
3.35
31.73
19.34
12,579.01
11,683.27
16,724.19
17,393.93
1,204.77
1,849.27
21.60
13,098.75
16,651.50
2,453.41
2,190.83
26.41
37,193.76
34,420.90
49,772.77
46,104.17
Equity and liabilities

Shareholders' funds
Share capital
Non-current liabilities
Deferred tax liabilities (net)
Long-term provisions
5
6
Current liabilities
Trade payables
7
8
8
6
Assets
Non-current assets
Fixed assets
Tangible assets
Intangible assets
Capital work-in-progress
Non-current investments
Long-term loans and advances
Trade receivables
Other non-current assets
9
10
11
12
13.1
13.2
Current assets
Inventories
Trade receivables
Cash and bank balances
Short-term loans and advances
Other current assets
14
13.1
15
12
13.2
TOTAL
3-48



Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
88
CONSOLIDATED PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 MARCH 2015
Particulars
Notes
31 March 2015
` In lakhs
31 March 2014
` In lakhs
16
86,737.19
68,911.79
6,206.40
5,409.47
17
80,530.79
63,502.32
Income
Less : excise duty
113.26
120.98
80,644.05
63,623.30
65,128.82
3,922.08
51,786.29
5,355.65
(495.32)
359.67
3,434.09
77,345.41
60,440.38
3,298.64
3,182.92
341.79
249.56
Other income
Total (I)
Expenses
Cost of material consumed
Purchase of traded goods
(Increase)/decrease in inventories of traded goods and finished goods
Employee benefits expense
Other expenses
18
19
20
21
22
Total (II)
8,919.16
(1,035.26)
410.61
Earnings before interest, tax, depreciation and amortization (EBITDA)

(I)-(II)
Depreciation and amortization expense
23
Finance costs
24
800.73
589.26
2,156.12
2,344.10
Current tax
369.09
429.00
MAT credit utilised / (entitlement)
184.28
47.66
Profit/(loss) before tax

Tax expenses
60.99
30.62
(229.47)
(2.80)
384.89
504.48
1,771.23
1,839.62
` 4.39
` 4.38
` 4.39
` 4.38
Deferred tax
Short/(Excess) Provision of tax relating to earlier years
Total tax expense
Profit/(loss) for the year
Earnings per equity share [nominal value of share ` 2]
35,45
(31 March 2014 ` 10)

Basic
Diluted
Summary of Significant accounting policies
3-48



Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015
1.
Corporate Group Information
Panama Petrochem Limited is a public limited company domiciled in India and incorporated under the provisions of the
Companies Act, 2013. Panama Petrochem Limited and its subsidiary (collectively referred as the group). The Groups
principal operations are located in India and it has operation in Unite Emirates Arab. The Group is engaged in the manufacture
of specialty petroleum products for diverse user industries like printing, textiles, rubber, pharmaceuticals, cosmetics, power
and other industrial oil.
2.
Basis of preparation of consolidated financial statements
These consolidated financial statements have been prepared and presented under the historical cost convention, except
as disclosed in the financial statements, on the accrual basis of accounting in accordance with the generally accepted
accounting principles (GAAP) in India and comply with the Accounting Standard (AS)-21 Consolidated Financial Statements
to the extent applicable. The consolidated financial statements are presented in Indian rupees.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous.
2.1 Summary of significant accounting policies
The financial statements of the Company have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material
respects the relevant provisions of the Companies Act, 2013 (the Act) and with the Accounting Standards notified
by the Companies (Accounts) Rules, 2014. The financial statements have been prepared under the historical cost
convention.
2.2 Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure
of contingent liabilities at the end of the reporting period. Although these estimates are based upon managements
best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.
2.3 Principles of consolidation
1)
The consolidated financial statements include the financial statements of Panama Petrochem Limited, the parent
company (hereinafter referred to as the Company) and its subsidiary (collectively referred to as the Group).
The consolidated financial statements have been prepared on the following basis:
i.
The financial statements of the parent company and the subsidiary have been combined on a line by line
basis by adding together the book values of like items of assets, liabilities, income and expenses after
eliminating intra-group balances / transactions and resulting unrealized profits in full. Unrealized losses
resulting from intra-group transactions have also been eliminated except to the extent that recoverable
value of related assets is lower than their cost to the Group. The amounts shown in respect of reserves
comprise the amount of the relevant reserves as per the balance sheet of the parent company and its share
in the post acquisition increase in the relevant reserves of the subsidiaries.
ii. The excess of the cost of acquisition of investments in the subsidiaries over the acquired portion of equity
in the subsidiaries is recognized in the financial statements as goodwill. The excess of acquired portion
of equity in subsidiaries over the cost of acquisition of investments in the subsidiaries is recognized in the
financial statements as capital reserve.
iii. Minority interest in the net assets of consolidated subsidiaries consists of:
(a) the amount of equity attributable to minorities at the date on which investment in subsidiary is made; and
(b) the minorities share of movements in equity since the date the parent and subsidiary relationship
came into existence.
iv. The consolidated financial statements are presented, to the extent possible, in the same format as that
adopted by the parent company for its separate financial statements.
v. The consolidated financial statements are prepared using uniform accounting policies for like transactions
and other events in similar circumstances to the extent possible.
2) The subsidiary companies considered in the consolidated financial statements are:
Name of the
Subsidiary
Country of
incorporation
Extent of
holding (%)
Reporting Effective date of

currency
becoming subsidiary
Panol Industries
RMC FZE
United Arab Emirates

(U.A.E.)
100
AED
90
1 January 2013
2.4 Current / Non-current classification
The Schedule III to the Act requires assets and liabilities to be classified as either Current or Non-current.
An asset is classified as current when it satisfies any of the following criteria:
(i) it is expected to be realised in, or is intended for sale or consumption in, the Companys normal operating
cycle;
(iii) it is expected to be realised within twelve months after the reporting date; or
(iv) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting date.
All other assets are classified as non-current.
A liability shall be classified as current when it satisfies any of the following criteria:
(i) it is expected to be settled in, the Companys normal operating cycle;
(iii) it is due to be settled within twelve months after the reporting date; or
(iv) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months
after the reporting date. Terms of a liability that could, at the opinion of the counterparty, result in its settlement
by the issue of equity instruments do not affect its classification.
All other liabilities are classified as non-current.
2.5 Measurement of EBITDA

As permitted by the Schedule III to the Act, the Company has elected to present earnings before interest, tax,
depreciation and amortization (EBITDA) as a separate line item on the face of the Profit and Loss Statement. The
Company measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the
Company does not include depreciation and amortization expense, finance costs and tax expense.
2.6 Inventories

Inventories are valued as follows:

Raw materials
Lower of cost or net realizable 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 First In First Out (FIFO) basis. Cost of
raw materials comprises of cost of purchase (net of discount) and other cost in
bringing the inventory to their present location and condition excluding Cenvat
credit / Countervailing duty. Customs duty on stock lying in bonded warehouse
is included in cost.
Work-in-progress
and Finished goods
Lower of cost and net realizable value. Cost includes direct materials and labour
and a proportion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on a First In
First Out (FIFO) basis.
Net realizable 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.
2.7 Cash and Cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.
91
2.8 Fixed Assets
a) Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing
costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition
for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future
benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on
existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are
charged to the Profit and Loss Statement for the period during which such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognized in the Profit and Loss Statement
b) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Intangible assets namely computer software is amortized at the rate of 33.33 % on a straight line basis over the
estimated useful economic life.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the Profit and Loss Statement
2.9 Depreciation/Amortization on Fixed Assets

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives
prescribed under the Schedule II to the Act.
Leasehold land is amortized on a straight line basis over the period of lease.
2.10 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. The following specific recognition criteria must also be met before revenue is
recognized:
Sale of Goods
Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer.
The Company collects sales taxes and value added taxes (VAT) on behalf of the government and, therefore, these
are not economic benefits flowing to the Company. Hence, they are excluded from revenue. Excise duty deducted
from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability
arising during the year.
Interest
Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
Interest income is included under the head other income in the Profit and Loss Statement.
Dividends
Revenue is recognized when the shareholders right to receive payment is established by the reporting date.
2.11 Foreign currency translation

(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 retranslated using the exchange rate prevailing at the reporting date. Nonmonetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value
or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date
when such value was determined.
92

(iii) Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting such 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 recognized as income or as expenses in the year in which they arise.
(iv) Forward Contracts

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or
income over the life of the contract. Exchange differences on such contracts are recognized in the Profit and
Loss Statement in the year in which the exchange rates change. Any profit or loss arising on cancellation or
renewal of forward exchange contract is recognized as income or as expense for the year.
2.12 Investment

Investments that are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All other investments are classified as long-term
investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the Profit and Loss Statement.
2.13 Retirement and other employee benefits

Post Retirement Benefits
i. Defined Contribution Plans
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 contributions to the respective fund are due. There are
no other obligations other than the contribution payable to the respective fund.
ii. Defined Benefit Plans
Gratuity liability is a defined benefit obligation. The costs of providing benefits under this plan is determined on the
basis of actuarial valuation at each year-end using the projected unit credit method.
Actuarial gains and losses for the defined benefit plan are recognized in full in the period in which they occur in the
Profit and Loss Statement.
2.14 Borrowing Costs

Borrowing costs includes interest, amortization of ancillary costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost.
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 cost of the
respective asset. All other borrowing costs are expensed out in the period they occur.
2.15 Segment Reporting 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.
93
2.16 Leases

Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item,
are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss
account on a straight-line basis over the lease term.
Company is the lessor
Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an
operating lease is recognized in the Profit and Loss Statement on a straight-line basis over the lease term. Costs,
including depreciation, are recognized as an expense in the Profit and Loss Statement. Initial direct costs such as
legal costs, brokerage costs, etc. are recognized immediately in the Profit and Loss Statement.
2.17 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 year.
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.
2.18 Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is 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 recognized 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 realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses,
all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down
the carrying amount of a 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
realized. 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.
Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current
tax. The Company recognizes MAT credit available as an asset only to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT
Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as an asset
in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax
under the Income Tax Act, 1961, the said asset is created by way of credit to the Profit and Loss Statement
and shown as MAT Credit Entitlement. The Company reviews the MAT Credit Entitlement asset at each reporting
date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal
tax during the sufficient period.
2.19 Impairment of tangible and intangible assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets
recoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units (CGU) net
selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount. 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
the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if
available. If no such transactions can be identified, an appropriate valuation model is used.
94
2.20 Provisions

A provision is recognized 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
2.21 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.
3. Share capital
Authorized share capital

12,77,50,000 (31 March 2014 : 2,55,50,000 of
` 10 each) equity shares of ` 2 each
31 March 2015
` In lakhs
31 March 2014
` In lakhs
2,555.00
2,555.00
806.57
806.57
806.57
806.57
Issued, subscribed and fully paid-up share capital

4,03,29,065 (31 March 2014 : 80,65,813 of ` 10 each) equity shares of ` 2 each
a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

Equity shares
31 March 2015
No. of shares

Share split during the year (Refer note 35)
` In lakhs
No. of shares
8,065,813
806.57
32,263,252
8,607,570
` In lakhs
860.75
(541,757)
(54.18)
40,329,065
806.57
8,065,813
806.57
Buy-back of shares during the year (Refer note 36)
Outstanding at the end of the year
31 March 2014
b. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of ` 2 per share (2014: ` 10 per share). Each holder of
equity shares is entitled to one vote per share, however the holders of global depository receipts (GDRs) do not have any
voting rights in respect of shares represented by the GDRs till the shares are held by the custodian bank (Refer Note 35).
The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
The amount of per share dividend recognized as distributions to equity shareholders is ` 2 (face value ` 2) [31 March 2014
: ` 6 (face value ` 10)]
In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets in proportion to the
number of equity shares held by the shareholders.
c. For the period of five years immediately preceding the reporting date

31 March 2015
` In lakhs
31 March 2014
` In lakhs
Aggregate number of :
Equity shares allotted in pursuant to the scheme of amalgamation of Monaco
Petroleum Private Limited [Face value ` 2 (31 March 2014 : ` 10)]
1,608,750
321,750
Equity shares allotted in pursuant to the scheme of amalgamation of Mobil Petrochem Private Limited [Face value ` 2 (31 March 2014 : ` 10)]
5,391,200
1,078,240
553,522
553,522
Equity shares bought back by the Company [Face value ` 10]
95
d. Details of shareholders holding more than 5% shares in the company
31 March 2015
No. of
shares
31 March 2014
% holding in
the class
No. of shares
% holding in
the class
2,788,275
6.91%
557,655
6.91%
12,286,725
30.47%
2,457,345
30.47%
31 March 2015
` In lakhs
31 March 2014
` In lakhs
0.24
0.24
0.24
0.24
55.36
1.18
54.18
55.36
55.36
9,366.42
9,377.91
Add : Premium on issue of GDR (Refer Note 37)
Less : Expense incurred on issue of GDR (Refer Note 37)
(11.49)
9,366.42
9,366.42
1,048.65
1,612.52
137.59
154.04
28.25
(717.91)
1,157.99
1,048.65
Balance as per the last financial statement
198.94
9.27
Foreign currency translation during the year
245.65
189.67
444.59
198.94
Equity Shares of ` 2 (31 March 2014 : ` 10) each

fully paid up (Refer note 35)
Ms. Shelina Arifali Rayani
Shares held by Custodian as against which global
depository receipts have been issued (Citi Bank
N.A.)
4. Reserves And Surplus
Other Reserves
Investment Allowance Reserve
Capital Redemption Reserves

Add : Transfer from profit and loss statement on buy back of shares
Securities Premium Account

General reserve
Add : amount transferred from surplus balance in the profit & loss statement
Less : Adjustment relating to fixed assets as per Companies Act, 2013
(net of defered tax ` 14.55 lakhs) (Refer note no. 9.4)
Less : Premium paid on buy back of equity shares
Foreign currency translation reserve
96
31 March 2015
` In lakhs
31 March 2014
` In lakhs
12,419.37
11,346.82
1,771.23
1,839.62
(7.34)
Proposed final equity dividend [amount per share ` 2 (31 March 2014 ` 6)]
806.58
483.95
Tax on proposed final equity dividend
168.78
82.25
Surplus/(deficit) in the profit and loss statement

Balance as per last financial statements
Add : Profit for the year
Less : Appropriations
Dividend of previous year written back of shares bought back
54.18
137.59
154.04
1,112.95
767.08
Net surplus in the profit and loss statement
13,077.64
12,419.37
Total reserves and surplus
24,102.24
23,088.98
depreciation/amortization charged for the financial reporting
348.14
301.17
Gross deferred tax liability
348.14
301.17
18.72
62.07
31.53
(12.36)
50.25
49.71
297.89
251.46
Transfer to capital redemption reserve on buy back of shares

Transfer to general reserve
Total appropriations
5. Deferred tax liabilities (Net)

Deferred tax liability
Fixed assets: Impact of difference between tax depreciation and
Deferred tax asset

Impact of expenditure charged to the profit and loss statement in the
Current year but allowed for tax purposes on payment basis
Net deferred tax liability
6. Provisions
Long-term
Short-term
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31.41
12.14
31.41
12.14
Provision for Income Tax [Net of taxes paid :

N.A. (31 March 2014: ` 1486.23)]
222.77
Proposed equity dividend
806.58
483.95
Provision for employee benefits

Provision for gratuity (Note 41)
Other provisions
Provision for tax on proposed equity dividend
168.78
82.25
Provision for Wealth Tax [Net of taxes paid : ` 2.26

(31 March 2014: ` 1.53)]
1.82
2.26
977.18
791.23
1,008.59
803.37
97
7. Short-term borrowings
31 March 2015
` In lakhs
31 March 2014
` In lakhs
4,175.18
1,678.04
4,175.18
1,678.04
Secured borrowings
Cash credit from banks
Terms of Securities and repayment
Cash credit from banks is secured against the hypothecation of Stocks, Book debts and Plant & Machineries (both present
& future), Pledge of Fixed Deposit Receipts, Further secured by Equitable Mortgage of Companys present Immoveable
Property situated at Ankleshwar, Daman, Marol industrial estate, property of group companies situated at Navi Mumbai,
property belonging to the Directors and corporate gurantee given by Anirudh Distributors Private Limited (Refer Note 43).
The cash credit is repayable on demand and carried an interest rate of 12% to 16% p.a
8. Current liabilities
Trade payables (Refer note 29 for details of dues to micro and small enterprises)
18,885.10
19,019.86
17.10
23.53
19.34
17.45
Statutory Dues payable
442.28
267.97
Forward Contract (net)
128.46
17.48
17.48
1.00
1.00
497.20
455.89
19,382.30
19,475.75

Creditors for capital goods
Investor Education and Protection Fund will be credited by following
amount (as and when due)
Unpaid dividend
Other payables

Deposits
98
99
2,428.74
6.19
2,638.18
1,086.65
59.10
2,846.05
At 31 March 2015
56.84
41.58
Depreciation
For the year
252.15
195.31
Accumulated
Depreciation
2,593.90
1,040.11
Net Block
35.69
35.69
At 31 March 2014
At 31 March 2015
0.53
0.58
5.58
5.05
30.11
30.64
6.07
37.30
58.75
16.41
28.53
13.81
2.03
11.78
64.82
13.71
51.11
6.96
44.15
Office
Equipment
5.46
14.70
60.20
3.82
8.77
47.61
5.19
42.42
65.66
3.35
62.31
3.10
59.21
Computers
167.00
185.68
90.00
28.50
61.50
15.12
46.38
257.00
9.82
247.18
4.88
242.30
Furniture
and fixtures
260.35
293.39
199.30
(3.39)
53.81
5.50
143.38
(22.96)
36.30
130.04
459.65
(6.81)
29.69
436.77
(32.85)
129.00
340.62
Vehicles
11,895.38
7,661.89
1,729.41
(3.39)
341.79
42.80
1,348.21
(22.96)
249.56
1,121.61
13,624.79
(6.81)
4,621.50
9,010.10
(32.85)
624.34
8,418.61
Total
` In lakhs
a) Addition to fixed assets includes capital assets of ` Nil ( 31 March 2014 : ` 0.89 lakh)
b) Gross block includes fixed assets in research & development (R&D) unit
Furniture ` 4.08 lakhs ( 31 March 2014 : ` 4.08 lakhs)
Lab Equipments ` 53.15 lakhs ( 31 March 2014 : ` 53.15 lakhs)
Computer ` 00.55 lakh ( 31 March 2014 : ` 00.55 lakh)
Air Conditioner ` 1.14 lakhs ( 31 March 2014 : ` 1.14 lakhs)
9.4 Adoption of useful life of the assets as per the requirement of Schedule II of the Companies Act,
Effective from 1 April, 2014 the Company has charged depreciation based on revised remaining useful life of the
assets as per the requirement of Schedule II of the Companies Act 2013 as per para 7(b) of notes to part C. Based on
transitional provision provided in note 7(b) to Schedule II, where the remaining useful life of an asset is nil the carrying
amount of the asset should be recognised in the retained earnings. Such carrying amount as on 1 April, 2014 for the
Company was ` 28.25 Lakhs (net of deferred tax ` 14.55 Lakhs).
4,133.12
1,315.30
603.09
108.60
494.49
74.33
420.16
4,736.21
2,926.42
1,809.79
339.55
1,470.24
Plant &
Equipment
9.3 Capital expenditure on research & development
2,250.27
2,267.01
148.53
37.69
110.84
38.76
72.08
2,398.80
20.95
2,377.85
2,377.85
Non Factory
Building
9.2 Non Factory Building includes those constructed on leasehold land:
1,235.42
At 31 March 2014
Gross Block
9.1 Factory Building includes those constructed on leasehold land:
Notes:-
At 31 March 2015
At 31 March 2014
2,455.67
At 31 March 2015
6.19
291.66
Other adjustments
Net Block
277.88
33.86
Charge for the year
218.78
257.80
43.91
Other adjustments
At 31 March 2014
Charge for the year
174.87
2,916.06
1,610.63
1,305.43
39.89
1,265.54
Factory
Building
Adjustments as per
the Companies Act,
2013 (Refer note 9.4)
33.92
223.88
2,720.40
6.93
2,713.47
100.96
2,612.51
Leasehold
Land
At 1 April 2013
Depreciation
6.19
Other adjustments
At 31 March 2015
Additions
6.19
At 31 March 2014
Other adjustments
6.19
Additions
At 1 April 2013
Cost or valuation
Freehold
land
09.Tangible assets

10. Intangible Assets
31 March 2015
` In lakhs
31 March 2014
` In lakhs
7.11
7.11
Additions
Disposals
7.11
7.11
7.11
7.11
7.11
7.11
Software
Cost or valuation
At 1 April 2013
At 31 March 2014
Additions
At 31 March 2015
Depreciation
At 1 April 2013
Charge for the year
Disposals
7.11
7.11
7.11
7.11
At 31 March 2014
At 31 March 2015
0.19
0.19
0.98
0.98
2.18
2.18
3.35
3.35
Aggregate amount of unquoted investments
1.17
1.17
Aggregate amount of quoted investments
2.18
2.18
Market Value
6.89
3.78
At 31 March 2014
Charge for the year
At 31 March 2015
Net Block
11. Non-current investments

Non Trade investments (valued at cost unless stated otherwise)

1,850 (31 March 2014 : 1,850) fully paid equity shares of `.10 each of
Bharuch Enviro Infrastructure Limited
975 (31 March 2014 : 975) Fully paid equity shares of ` 100 each of
The Marol Co operative Industrial Estate Limited
Quoted equity instruments
6,200 (31 March 2014 : 6,200) fully paid equity shares of face value of ` 10 each of
DCB Bank Limited (formally Development Credit Bank Limited)
100
12. Loans and advances
Non -current
Current
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
659.74
12.00
659.74
12.00
13.58
13.58
76.57
107.09
13.58
13.58
76.57
107.09
440.26
256.47
440.26
256.47
Prepaid expenses
126.33
128.75
Current tax [net of provision for tax ` 1058.09

lakhs] (2014 : N.A.)
25.54
MAT credit entitlement (Refer note 46)
76.62
264.00
6.88
6.15
8.32
8.14
Capital advances
(A)
Security deposit
(B)
Advances recoverable in cash or kind
(C)
Other loans and advances
(Unsecured, considered good)
Loan to employees
1,095.63
1,426.38
6.88
6.15
1,332.44
1,827.27
680.19
31.73
1,849.27
2,190.83
530.36
368.14
94.80
112.51
625.16
480.65
94.80
112.51
530.36
368.14
16,863.57
16,283.36
16,863.57
16,283.36
17,393.93
16,651.50
Balance with statutory/government authorities

(D)
Total (A+B+C+D)
13. Trade receivables and other assets
13.1 Trade receivables
Unsecured, considered good unless stated otherwise
Outstanding for a period exceeding six months from
Doubtful
Provision for doubtful receivables

(A)
Outstanding for a period less than six months from
(B)
Total (A+B)

101
13.2 Other assets
Non -current
Balance with banks in deposit accounts

(Refer Note 15)
Current
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
0.09
10.15
12.79
12.79
9.19
21.60
13.62
(A)
Unamortized expenditure
Unamortized premium on forward contract
(B)
Others
Interest accrued on fixed deposits
9.19
21.60
13.62
0.09
19.34
21.60
26.41
31 March 2015
` In lakhs
31 March 2014
` In lakhs
14,161.25
11,602.73
(C)
Total (A+B+C)
14. Inventories (valued at lower of cost and net realizable value)
Raw Material (Refer Note 18) [Includes Goods In transit ` 216.95,

31 March 2014: ` 284.04]
Finished Goods (Refer Note 20)
Traded Goods (Refer Note 20)
Packing Material (Refer Note 18) [Includes Goods In transit ` Nil,
31 March 2014: ` 5.63]
531.17
888.33
1,892.48
500.06
139.29
107.63
16,724.19
13,098.75
15. Cash and bank balances

Non -current
Current
31 March 2015
` In lakhs
31 March 2014
` In lakhs
31 March 2015
` In lakhs
31 March 2014
` In lakhs
760.55
2,030.77
three months
100.00
In unpaid dividend account
19.34
17.45
1.64
4.78
781.53
2,153.00
Deposits with original maturity for more

than 12 months
0.09
10.15
3.24
Deposits with original maturity for more

than 3 months but less than 12 months
420.00
300.41
0.09
10.15
423.24
300.41
(0.09)
(10.15)
423.24
300.41
1,204.77
2,453.41
Cash and cash equivalents

Balance with banks:
In current accounts
In deposits accounts with original
maturity of less than
Cash on hand
(A)
Other bank balances
Amount disclosed under "non current assets"

(Refer Note 13.2)
(B)
Total (A+B)
102
16. Revenue from operations
31 March 2015
` In lakhs
31 March 2014
` In lakhs
78,540.03
62,971.95
8,197.16
5,939.84
86,737.19
68,911.79
6,206.40
5,409.47
80,530.79
63,502.32
Revenue from operations

Sale of products
Finished Goods
Traded Goods
Other Operating revenue
Less : Excise duty #
# Excise duty on sales amounting to ` 6,206.40 lakhs (31 March 2014 : ` 5,409.47 lakhs) has been reduced from sales in
profit and loss statement and excise duty on increase/(decrease) in stock amounting to ` (24.94) lakhs (31 March 2014
: ` 39.54 lakhs) has been considered as expense/(income) in note 22 of the financial statements.
Details of products sold
Finished Goods
73,554.73
58,309.00
4,985.30
4,662.95
78,540.03
62,971.95
Wax
1,117.58
1,530.90
Others
7,079.58
4,408.94
8,197.16
5,939.84
56.36
54.60
1.00
35.05
0.03
0.04
17.71
Panoil
Others
Traded goods
17. Other income

Interest income on
Bank deposits
Others
Dividend income on
Long - term investment
Reversal of provision for doubtful debts
Net proceeds from claim of insurance on theft of fixed asset
Others
103
0.82
37.34
31.29
113.26
120.98
18. Cost of material consumed
31 March 2015
` In lakhs
31 March 2014
` In lakhs
11,602.73
11,837.92
Add : Purchases
65,806.77
50,426.41
77,409.50
62,264.33
14,161.25
11,602.73
Cost of raw material consumed
63,248.25
50,661.60
107.63
55.47
1,912.23
1,176.85
2,019.86
1,232.32
139.29
107.63
1,880.57
1,124.69
65,128.82
51,786.29
Raw material consumed
Packing material consumed

Add : Purchases
Cost of packing material consumed
Total material consumed
Details of raw material consumed
Base Oil
48,536.33
37,891.66
Others
14,711.92
12,769.94
63,248.25
50,661.60
14,161.25
11,602.73
139.29
107.63
14,300.54
11,710.36
` In lakhs
31 March 2014
Details of inventory
Base oil & Wax
Packing material
Imported and indigenous raw materials consumed
% of total
consumption
31 March 2015
31 March 2015
% of total
consumption
31 March 2014
Imported
84%
52,854.38
79%
39,954.68
Indigenous
16%
10,393.87
21%
10,706.92
100%
63,248.25
100%
50,661.60
31 March 2015
` In lakhs
31 March 2014
` In lakhs
Wax
1,153.23
1,282.08
Others
7,765.93
4,073.57
8,919.16
5,355.65
` In lakhs
Consumption of raw materials includes consumption on account of manufacturing of samples
19. Purchase of traded goods
104
20. (Increase)/decrease in inventories of traded goods and finished goods
31 March 2015
31 March 2014
` In lakhs
` In lakhs
1,892.48
500.06
31 March 2015
(Increase)/decrease
` in lakhs
Inventories at the end of the year

Traded goods
Finished goods
(1,392.42)
531.17
888.33
357.16
2,423.65
1,388.39
(1,035.26)
Inventories at the beginning of the year
31 March 2014
Traded goods
500.06
618.83
118.77
Finished goods
888.33
274.24
(614.09)
1,388.39
893.07
(495.32)
(1,035.26)
(495.32)
Details of inventory of traded goods

and finished goods
31 March 2015
` In lakhs
31 March 2014
` In lakhs
1,892.48
500.06
1,892.48
500.06
531.17
888.33
531.17
888.33
368.31
336.88
Contribution to provident and other funds
16.64
11.59
Gratuity expense (note 41)
19.27
5.71
6.39
5.49
410.61
359.67
Power and fuel
56.03
56.58
Water charges
3.46
2.88
(24.94)
39.54
Traded goods
Wax & Others
Finished Goods
Panoil
21. Employee benefit expense

Salaries, wages and bonus
Staff welfare expenses
22. Other expenses
Increase/(decrease) of excise duty on inventory

Repairs and maintenance
Buildings
43.27
9.67
Machinery
50.68
37.29
Others
37.23
34.80
Insurance
105.15
77.60
Rent
109.81
47.45
Rates and taxes
31.32
6.76
Communication costs
33.00
29.85
107.25
76.61
12.50
12.97
5.10
2.60
Legal and professional fees

Payment to auditor (Refer details below)
Director sitting fees
105
31 March 2015
` In lakhs
31 March 2014
` In lakhs
1,740.16
1,073.75
Freight outwards
666.46
571.66
Travelling and conveyance
190.10
192.13
68.50
45.24
162.15
142.52
Clearing and forwarding expenses
Advertising and sales promotion

Brokerage and commission
Security charges
25.68
18.89
Bad debts and sundry balances written off
50.72
175.58
99.73

Donation and charity (Refer note 38)
59.73
72.10
Premium on forward exchange contract amortized
12.79
190.94
185.11
257.60
3.50
Exchange loss (net)

Loss on sale of assets
Miscellaneous expenses
190.82
155.85
3,922.08
3,434.09
11.50
10.47
1.00
1.00
Payment to auditor (excluding service tax)

As auditor:
Statutory audit and limited review fees
Tax audit fees
1.50
12.50
12.97
341.79
249.56
341.79
249.56
Interest
376.52
312.88
Bank charges
424.21
276.38
800.73
589.26
i) Service tax Matter disputed with the Deputy Commissioner of Service Tax
(Dispute regarding demand raised on service tax payable on interest on usance
charges for the period September 2008 to March 2013)
80.71
58.25
ii) Excise duty Matter disputed with the Commissioner of Central Excise, Customs &
Service Tax, Daman, (Dispute regarding demand raised on excise duty not recovered
on freight charged to customers)
99.64
99.64
iii) Custom duty Matter disputed Customs,Excise and Service Tax Appellate Tribunal,
Mumbai, (Dispute regarding demand raised for classification of product)
126.70
126.70
iv) Bank Gurantees
546.17
339.60
In other capacity
23. Depreciation and amortization expense

Depreciation of tangible assets (Refer note 9)
Amortization of intangible assets (Refer note 10)
24. Finance costs
25. Contingent Liabilities
(The contingent liabilities, if materialized, shall entirely be borne by the company,

as there is no likely reimbursement from any other party.)
106
26. Capital and other commitments
31 March 2015
` In lakhs
31 March 2014
` In lakhs
2.36
8.00
Estimated amount of contracts remaining to be executed on capital

account and not provided for (net of advances)
27. Current Liabilities & Provisions

In the opinion of the Board, adequate provision has been made for all known liabilities and the same is not in excess of
the amounts considered reasonably necessary.
28. Current assets, loans and advances
In the opinion of the Board, the current assets, loans and advances have value on realization in the ordinary course of
business, at least equal to the amount at which they are stated in the Balance Sheet.
29. Details of dues to micro and small enterprises as defined under the MSMED Act 2006*
a. The principal amount and the interest due thereon remaining unpaid to any
supplier as at the end of each accounting year
- Principal amount due to micro and small enterprises
- Interest due on above
b. The amount of interest paid by the buyer in terms of section 16 of the Micro and
Small enterprise Development Act, 2006, along with the amounts of the payment
made to the supplier beyond the appointed day during each accounting year.
c. The amount of interest due and payable for the period of delay in making payment
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under Micro and Small Enterprise Development Act,
2006.
d. The amount of interest accrued and remaining unpaid at the end of each
accounting year;
e. The amount of further interest remaining due and payable even in the succeeding
years, until such date when the interest dues as above are actually paid to the
small enterprise for the purpose of disallowance as a deductible expenditure under
section 23 of the Micro and Small Enterprise Development Act, 2006.
*The company has initiated the process of identification of suppliers registered under Micro and Small Enterprise
Development Act, 2006, by obtaining confirmations from all suppliers. Information has been collated only to the extent of
information received as at the balance sheet date.
30. Value of imports calculated on CIF basis (accrual)
50,705.63
35,729.71
1,358.71
1,580.79
52,064.34
37,310.50
57.88
31.36
Bank Interest
119.71
128.08
Bank Charges
56.53
43.32
Travelling Expenses
18.65
Others
18.60
4.10
11.49
271.37
218.35
Raw materials (Includes Goods in transit)

Traded goods
31. Expenditure in foreign currency (accrual basis)

Brokerage & Commission
Expenses related to GDR issue (adjusted against securities premium) (Refer note 37)
107
32. Net dividend remitted in foreign exchange
April 1, 2014 to
31 March 2015
Period to which it relates
April 1, 2013 to
31 March 2014
Number of non resident shareholders
Number of equity shares in lakhs held on which dividend was due
Amount remitted in US $
33. Earnings in foreign exchange (accrual basis)

Exports at F.O.B Value
28,103.44
20,223.82
28,103.44
20,223.82
34. Derivative Instruments and unhedged foreign currency exposure

a) Forward contract outstanding as at Balance Sheet date
` In lakhs
Particulars
Forward Contract to buy US $
Purpose
Hedge of expected future payments to trade payables
US $ Nil lakhs ( 31 March 2014: US $ 37.87 lakhs)

` Nil lakhs ( 31 March 2014: ` 2,276.07 lakhs)
b) Particulars of unhedged foreign currency exposure as at the reporting date
Trade Receivables
31 March 2015
$ In lakhs
31 March 2015
` In lakhs
31 March 2014
$ In lakhs
31 March 2014
` In lakhs
77.00
4,894.10
58.64
3,524.49

Trade Payables
0.22
13.90
1.14
68.50
274.07
17,154.41
220.45
13,249.12
Advance to Trade Payables
1.22
76.22
1.92
115.40
Balance with Banks
6.02
376.95
9.11
547.59
35. Shares Split Information

a. Pursuant to resolution passed at the Annual General Meeting of the company held on 4 September 2014, the Company
sub-divided its shares of face value of ` 10 each into five shares of ` 2 each. Accordingly as per resolution, read with
amendments made to Memorandum of Assocation as required by Companies Act, 2013. Authorized share capital of the
company stands at ` 2,555 lakhs i.e. 1,277.5 lakhs shares of ` 2 each as compared to 255.5 lakhs shares of ` 10 each
last year.
b. Each GDR of the company, representing five equity shares of ` 10 each, post stock split , now has underlying One GDR
representing twenty five equity shares of face value of ` 2 each.
c. Consequently, the earning per share has been restated for the previous year based on the number of equity shares post
split, in accordance with Accounting Standard (AS-20) on Earnings Per Share.
36. In accordance with section 77A, 77AA and 77B of the Companies Act, 1956 and in pursuant to the buy-back announcement
dated 1 March 2013, the Company bought back a total of 5,53,522 Equity Shares during the period 14 February 2013 to
13 February 2014. All the shares have been duly extinguished before 31 March 2014. Consequently, an amount of ` 55.36
lakhs, being the nominal value of equity shares bought back had been transferred to Capital Redemption Reserve from the
Profit and Loss Statement upto 31 March 2014. Further, a total amount of ` 732.61 lakhs being the premium on buy-back
had also been appropriated from General Reserve upto 31 March 2014.
37. Global Depository Receipts (GDRs) issue

On 20 July 2011, the Company raised US $ 1,39,99,985 (` 6,233.79 lakhs) through issuance of 4,91,469 GDRs representing
24,57,345 equity shares of ` 10 each at a price of ` 253.68 per equity share of ` 10 each. The issue price of each GDR is US
$ 28.486 and the GDRs are listed on the Luxembourg Stock Exchange. The holders of GDR do not have voting rights with
respect to the shares represented by the GDRs, but rank pari passu with the existing share holders in all respect including
entitlement of dividend declared. The Company has paid ` Nil (31 March 2014 : ` 11.49 lakhs) on account of issue expenses
towards the issue of Global Depository Receipts, which has been incurred for issue of GDR, and same has been adjusted
against Securities Premium during the previous year.
108
Given below are the details of utilization of proceeds from issue of Global Depository Receipts
31 March 2015
` In lakhs
31 March 2014
` In lakhs
Opening Balance in banks in Current Account outside India
3,724.91
Proceeds from issue of GDR's
Issue expenses
11.49
Net Proceeds
3,713.42
II Utilization of funds
3,713.42
III Unutilized funds
Nil
I Sources of Funds
IV Interim Utilization of Balance Funds

Balance in banks in Current Account outside India #
# After adjustment of exchange gain
38. Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII
thereof : ` 57.78 Lakhs is included in donation and charity.
39. Details of loans Given, Investments made and Gurantee Given Covered u/s 186 (4) of the Companies Act, 2013 Coporate
Guarantees given by the Company as at 31 March, 2015
Balance as at
Name of the company
Panol Industries RMC FZE, UAE (Bank Gurantee US $ 45 lakhs)
31 March 2015
` In lakhs
31 March 2014
` In lakhs
2,816.59
31 March 2015
` In lakhs
31 March 2014
` In lakhs
0.89
39.69
30.57
39.69
31.46
40. Expenses on Scientific Research
Capital (Refer Note 9.3)

Revenue
41. Employee Benefits

General Description of Defined Benefit plan
Gratuity
The Company operates single type of Gratuity plans wherein every employee is entitled to the benefit equivalent to fifteen
days salary last drawn for each completed year of service depending on the date of joining and eligibility terms. The same
is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous
service.
The following tables summaries the components of net benefit expense recognized in the profit and loss statement and
the funded status and amounts recognized in the balance sheet for the respective plans.
109
Profit & Loss Statement
Gratuity
Net Employee Benefit Expense recognized in the employee cost

5.65
5.19
Interest cost on benefit obligation
3.49
3.31
Past service Cost

Expected return on plan assets
(3.07)
(3.04)
Net actuarial( gain) / loss recognized in the year
13.22
0.25
(0.02)
Net Benefit Expense
19.27
5.71
Actual Return on Plan Assets
10.15
(2.79)
Present Value of defined benefit obligation
73.90
48.18
Fair value of plan assets
42.50
36.04
(31.40)
(12.14)
48.18
41.39
5.65
5.19
Interest cost
3.49
3.30
16.59
(0.53)
Balance sheet
Benefit assets/(liability)
Plan assets/(liability)
Changes in Present Value of Defined Benefit Obligation are as follows:
Opening defined benefit obligation
Actuarial (gains) / losses on obligation

Past Service Cost
Benefits paid
(1.17)
73.91
48.18
36.04
33.79
Expected return
3.07
3.04
Actuarial gain / (loss)
3.35
(0.79)
0.02
Contributions by employer
Benefits paid
42.49
36.04
Closing defined benefit obligation

Changes in Fair Value of Plan Assets are as follows:
Opening fair value of planned assets
Closing fair value of plan assets
The company expects to contribute ` 3.07 lakhs to gratuity in the next year (31 March 2014: ` 3.04 lakhs)
The major category of plan assets as a percentage of the fair value of total plan assets are as follows:
Policy of Insurance
100%
100%
The principal assumptions used in determining gratuity for the Companys plans are shown below:
Discount rate
Expected rate of return on assets
Age of Retirement
Annual increase in salary cost
110
7.80%
8.80%
9%
9%
58
58
6%
6%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
The over all expected rate of return on assets is determined based on the market prices prevailing as on that date,
applicable to the period over which the obligation is expected to be settled.
Amounts for the current and previous four reporting periods are as follows:
31 March 2015
` In lakhs
31 March 2014
` in lakhs
73.90
48.18
Plan Assets
42.50
36.05
Gratuity:
(31.40)
(12.13)
11.79
1.66
(3.35)
0.79
31 March 2013
` In lakhs
31 March 2012
` In lakhs
31 March 2011
` in lakhs
41.40
32.98
25.98
Surplus/(deficit)

Plan Assets
33.81
30.72
29.64
Surplus/(deficit)
(7.60)
(2.28)
3.65
1.07
1.05
7.42
(0.03)
(1.60)
0.83
Experience adjustment on plan liabilities (gain)/

loss
42. Segment Information
Business Segments:
As the Company is in the business of manufacturing and trading of specialty petroleum products, the Company has
considered petroleum products as the only business segment for disclosure in this context of accounting standard 17.
Geographical Segments :
The following table shows the distribution of the Companys sales by geographical market, regardless of where the goods
were produced:
Within India
Outside India
Total
43,710.92
36,819.87
80,530.79
35,848.46
13,822.16
49,670.61
308.50
4,313.00
4,621.50
Within India
Outside India
Total
38,242.66
25,259.66
63,502.32
34,953.58
10,886.59
45,840.17
624.34
3,966.96
4,591.30
Revenue
Segment assets
Revenue
Segment assets
Notes :
Geographical Segment :
a) For the purpose of geographical segment the sales are divided into two segments - within India and outside India.
b) The accounting policies of the segments are the same as those described in Note 2
111
43. Related party disclosures as required under AS-18, Related Party Disclosures, are given below:

(a) Names of related parties with whom transactions have taken place during the year
31 March 2015
` In lakhs
31 March 2014
` in lakhs
Key Management Personnel

Amirali E Rayani
Amin A Rayani
Samir Rayani
Relatives of key management personnel
Akbarali Rayani (Brother of Mr. Amirali E Rayani)
Vazirali Rayani (Brother of Mr. Amirali E Rayani)
Salimali Rayani (Brother of Mr. Amirali E Rayani)
Arif Rayani (Brother of Mr. Amin Rayani)
Nilima Kheraj (Sister of Mr. Samir Rayani)
Subsidiary
Enterprises owned or significantly influenced by key management personnel or their relatives
(b) Transactions with Related Parties
Transaction with Key Managerial Personnel and relatives of Key Managerial Personnel
Remuneration paid to Key Managerial Personnel
Amirali E Rayani
20.00
24.00
Amin A Rayani
17.50
21.00
Samir Rayani
15.00
18.00
Akbarali Rayani
5.40
4.68
Vazirali Rayani
5.40
5.40
Salimali Rayani
5.40
4.68
Nilima Kheraj
5.40
4.69
Arif Rayani
5.40
4.69
Amin A Rayani
6.64
6.64
Samir Rayani
7.84
7.84
Vazir Rayani
1.20
1.20
Arif Rayani
3.06
3.06
Remuneration paid to Relative of Key Managerial Personnel
Payment of Rent
Rent paid to Key Managerial Personnel
Rent paid to Relative of Key Managerial Personnel
112
31 March 2015
` In lakhs
31 March 2014
` in lakhs
Investment in share capital
2,481.88
Advance Given
658.99
Repayment received of Advance given
(658.99)
Interest Income
6.65
2,816.59
47.96
6,500.00
6,500.00
6.65
10.63
Transaction with Subsidiary
Bank Gurantee Given (US $ 45 Lakhs)

Reimbursement of expenses incurred on behalf
Transaction with Enterprises owned or significantly influenced
by key management personnel or their relatives
Corporate gurantee given on behalf of the Company
Balances at the end of the year
Subsidiary :
Interest Receivable
44. Leases
Operating Lease: company as lessee

The Company has entered into arrangements for taking on leave and license basis certain office premises and warehouses.
The specified disclosure in respect of these agreements is given below :
Lease payments recognized in the profit and loss statement for the year
32.26
31.18
Notes:
(i) There is no escalation clause in the lease agreement
(ii) There are no restrictions imposed by lease arrangements
(iii) There are no subleases
45. Earnings per share (EPS)
The following reflects the profit and share data used in the basic and diluted EPS computations :
Profit after tax attributable to equity shareholders
1,771.23
1,839.62
Net profit for calculation of basic and diluted EPS
1,771.23
1,839.62
No of shares
No of shares
40,329,065
42,047,610
Basic Earnings per share
4.39
4.38
Diluted Earnings per share
4.39
4.38
Weighted average number of equity shares in

calculating basic EPS (Refer note no. 35)
46. Taxation
Minimum Alternate Tax (MAT) :- The Company has during the year, provided the current year tax liability of
` 369.09 lakhs (previous year ` 429 lakhs) calculated in accordance with the normal rate of income of tax. However,
the tax liability for the previous year is calculated as per the provisions of Section 115JAA of the Income Tax Act, 1961.
The MAT credit entitlement of ` 182.25 lakhs has been reversed during the year and ` 76.62 lakhs has been availed for
the year ended 31 March 2015, which is disclosed under Loans and advances.
113
47. Additional Information, as required under Schedule III to the Companies Act, 2013, of the enterprises
consolidated as Subsidiary.
Net Assets,i.e., total assets
minus total liabilities
Share in profit or loss
Name of the Enterprise
As % of
consolidated
net assets
Amount
(` in Lakhs)
As % of
consolidated
profit or loss
Amount
(` in Lakhs)
Parent
78.98%
23,769.62
77.68%
1,375.87
21.02%
6,324.83
22.32%
395.36
100.00%
30,094.44
100.00%
1,771.23
Subsidiary
Foreign
Minority Interests in subsidiary
(Investments as per the equity method)
Total
48. Previous year figures

The company has reclassified previous year figures to conform to this years classification.
Signature to Notes 1 to 48 of the financial statements



Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
114
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015
Particulars
31 March 2015
` In lakhs
31 March 2014
` In lakhs
2,156.12
2,344.09
Depreciation/amortization
341.79
249.56
Provision for bad and doubtful debt
(17.71)
99.73
Unrealized foreign exchange loss/(gain)
266.06
(415.10)
Interest expense
800.73
589.26
Interest income
(57.36)
(89.65)
Foreign currency translation reserve
245.65
189.67
Cash Flow from operating activities

Profit before tax
Non-cash adjustment to reconcile profit before tax to net cash flows
Net proceeds from claim of insurance on theft of fixed asset/Loss on Sales of Assets
(0.82)
3.50
Dividend Income
(0.03)
(0.04)
3,734.43
2,971.02
Operating profit before working capital changes

(Increase)/decrease in Trade Receivables
(Increase)/decrease in Inventories
(Increase)/decrease in Loans and advances and other assets
Increase/(decrease) in Trade Payables
(591.01)
(4,848.57)
(3,625.44)
(312.28)
195.07
1,408.56
(565.98)
3,458.38
64.68
577.65
(788.26)
3,254.76
384.83
264.23
(1,173.08)
2,990.53
(1,308.71)
(3,816.80)
4.24
6.39
(112.77)
190.34
58.58
108.70
0.03
0.04
(1,358.63)
(3,511.33)
Proceeds from issuance of share capital less exp.
(11.49)
Buy back of Shares
(772.09)
Proceeds/ (Repayment) from/of short-term borrowing (net)
2,497.14
(511.85)
Interest paid
(804.01)
(589.26)
Dividend and tax on dividend paid on Equity Shares
(564.31)
(392.48)
Net cash flow from/(used in) financing activities (C)
1,128.82
(2,277.17)
Increase/(decrease) in other liabilities and provisions

Cash generated from/(used in) operations
Direct taxes paid (Net of refunds)
Net cash flow from/(used in) operating activity (A)
Cash flows from investing activities

Purchase of fixed assets, including intangible assets, CWIP and capital advances
Sales of Fixed Assets
Redemption/maturity of bank deposits (having original maturity of more than
three months)
Interest received
Dividend received
Net cash flow from/(used in) investing activities (B)
Cash flows from financing activities
115
CONSOLIDATED CASH FLOW STATEMENT (CONT......)

Particulars
31 March 2015
` In lakhs
31 March 2014
` In lakhs
(1,402.89)
(2,797.97)
Net increase/(decrease) in cash and cash equivalents (A+B+C)
31.42
(100.02)
Cash and cash equivalents at the beginning of the year
2,153.00
5050.99
Cash and cash equivalents at the end of the year
781.53
2,153.00
1.64
4.78
760.55
2,030.77
100.00
Effect of exchange differences on cash & cash equivalents held in foreign currency
Components of Cash and Cash Equivalents

Cash on hand
With banks
- on current account
- on deposit account
- on unpaid dividend account *
Total Cash and Cash Equivalents (refer note 15)
19.34
17.45
781.53
2,153.00
* The company can utilize these balances only towards the settlement of the
respective unpaid dividend.
Note :
The Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard - 3 Cash Flow
Statements


Amirali E. Rayani
Amin A. Rayani
Chairman
CA Virag Shah
Partner
Pramod Maheshwari
Gayatri Sharma
(CFO)
Company Secretary
Place : Mumbai
Date : 30 May, 2015
Place : Mumbai
Date : 30 May, 2015
116
Shareholders authorisation to receive dividends through Electronic Credit Clearing Mechanism.

Registered Folio No ........................................................................................................................................................
Name of the first/sole shareholder .................................................................................................................................
PAN ..............................................................................................................................................................................

Telephone Number of investor .......................................................................................................................................
Email id of investor ........................................................................................................................................................
Bank Name ....................................................................................................................................................................

Branch Address & Telephone No. of Branch ......................................................................................................................

Bank Account Number
(As appearing on the Cheque Books) ..............................................................................................................................

Branch Code .................................................................................................................................................................
9 digit code number of the Bank and Branch appearing on the MICR cheque issued by the Bank. (Please attach a blank cancelled cheque, or a photocopy (Xerox copy) of a cheque issued to you by your Bank, for verification of the above particulars)
Account Type
I hereby, declare that the particulars given above are correct and complete. If the payment transaction is delayed or not effected at all for any reasons, including but not limited to incomplete or incorrect information, I will not hold the Company/RTA
responsible. I agree to discharge the responsibility expected of me as a participant under the scheme.
I, further undertake to inform the Company of any subsequent change(s) in the above particulars.

Place :
Signature of the Holder(s):
1.
Date :

2.
Note:
1. Please fill in the information in CAPITAL LETTERS in ENGLISH ONLY.
2. In case of shareholders holding the equity shares in demat form, the shareholders are requested to provide details to their
respective Depository participants.
3. KINDLY RETURN THE ABOVE DULY ATTESTED BY YOUR BANKERS TOGETHER WITH THE SELF-ATTESTED
COPY OF THE PAN CARD
117
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PANAMA PETROCHEM LIMITED

33 rd ANNUAL REPORT 2014-15

Mr. Amirali E. Rayani

401, Aza House, 24, Turner Road

Mr. Amin A. Rayani

Managing Director & CEO

Bandra (W), Mumbai 400 050, India

Mr. Samir A. Rayani

Mr. Dilip S. Phatarphekar Independent Director

Mr. Madan Mohan Jain

Mr. Mukesh Mehta

Ms. Nargis Mirza Kabani

Additional Director (independent)

Company Secretary &

Ankleshwar 393 002, Gujarat, India

Tel: 91-2646-221 068,

Ms. Gayatri Sharma

M/S. Bhuta Shah & Co.

Chartered Accountants, Mumbai, India

Ankleshwar, Daman, Taloja, & Dahej

Registrar & Share Transfer Agents

Standard Chartered Bank

Bigshare Services Private Limited

DBS Bank Limited

E -2, Ansa Industrial Estate,

Yes Bank Limited

Sakinaka, Saki - Vihar Road,

Andheri (E), Mumbai 400 072

HDFC Bank Limited

FAX: 91-22-2847 5207.

National Stock Exchange of India Limited

PANAMA PETROCHEM LIMITED

33 rd ANNUAL REPORT 2014-15

Management Discussion & Analysis Report . ..........................................

Corporate Governance Report...............................................................

CEO Report ........................................................................................

Auditors Report & Annexure.................................................................

Profit & Loss Accounts..........................................................................

Cash Flow Statement............................................................................

Consolidated Independent Auditors Report ...........................................

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

Consolidated Profit & Loss Accounts......................................................

Consolidated Notes to Account..............................................................

Consolidated Cash Flow Statement........................................................

PANAMA PETROCHEM LIMITED

33 rd ANNUAL REPORT 2014-15

To declare dividend on Equity Shares.

PANAMA PETROCHEM LIMITED

33 rd ANNUAL REPORT 2014-15

PANAMA PETROCHEM LIMITED

33 rd ANNUAL REPORT 2014-15

PANAMA PETROCHEM LIMITED

33 rd ANNUAL REPORT 2014-15

A. In case of members receiving e-mail:

Log on to the e-voting website www.evotingindia.com

Click on Shareholders tab.

Now Enter your User ID

For CDSL: 16 digits beneficiary ID,

For NSDL: 8 Character DP ID followed by 8 Digits Client ID,