Lanco Industries Limited: Annual Report 2009-2010

LANCO INDUSTRIES
LIMITED
Regd. Office & Works:
Rachagunneri-517 641, Srikalahasthi Mandal
Chittoor District, Andhra Pradesh
Annual Report
2009-2010
Lanco_AR2010_Cover_24thJun10.indd 1 6/24/2010 3:49:23 PM

VISION
We aim to be world class, committed to customer satisfaction
and to encourage the spirit of leadership amongst our
dedicated team by creating a healthy environment for
continuous growth, profit and prosperity.
Contents
Corporate Information 1
Directors’ Report 2
Annexures to Directors’ Report 5
Report on Corporate Governance 6

Shri G S Rathi, Director of the Company, handing over the cheque
Auditors’ Certificate on Corporate Governance 14 to Shri Konijeti Rosaiah, Hon’ble Chief Minister of Andhra Pradesh
for Cyclone Relief Fund
Management Discussion & Analysis 15
Risk Management 18
Auditors’ Report 19
Annexure to Auditors’ Report 20
Balance Sheet 22
Profit and Loss Account 23
Cash Flow Statement 24
Schedules 25
Balance Sheet Abstract 39
Notice of Annual General Meeting 40
Neighbouring villagers at the free eye camp organised by

the company at its plant on 26th January 2010

Annual Report 2009-2010
corporate information
Directors Shri G. Maruthi Rao

Shri Gouri Shankar Rathi
Shri L. Madhusudhan Rao
Shri G. Bhaskara Rao
Shri L. Sridhar
Shri P.M. Suresh (Nominee of IDBI)
Shri Vinod Kumar Agrawal, IAS (Nominee of APIDC)

Managing Director Shri Mayank Kejriwal

Sr. General Manager – Finance Shri G.D. Saini
& Company Secretary

Auditors M/s. K.R. Bapuji & Co.
Hyderabad
Solicitors Khaitan & Co.
Bankers ICICI Bank Ltd.

HDFC Bank Ltd.
IDBI Bank Ltd.
Standard Chartered Bank
Punjab National Bank
Bank of India
Andhra Bank
Registered Office & Works Rachagunneri-517 641

Srikalahasthi Mandal
Chittoor District
Andhra Pradesh
Share Transfer Agents M/s. Karvy Computershare Private Limited

Plot No. 17-24, Beside Image Hospital
Vittalrao Nagar, Madhapur
Hyderabad-500 081
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Lanco Industries Limited
directors’ report
Dear Shareholders,
Your Directors take pleasure in presenting the 18th Annual Report and Audited Accounts of your Company for the year
ended 31st March, 2010.
Financial Results
(Rs. in Lakhs) (Rs. in Lakhs)
2009-10 2008-09
Net Sales & Other Income 69,129.89 64,681.79
Profit before Depreciation & Tax 10,592.23 4,464.66
Depreciation 1,794.60 1,641.84
Profit before Taxation 8,797.63 2,822.82
Less: Provision for Taxation (Including Deferred Tax) 3,003.66 987.53
Profit after Tax 5,793.97 1,835.29
Profit brought Forward from Previous Year 1,143.80 1,242.48
Prior Period Adjustment 67.99 –
Debenture Redemption Reserve written back 750.00 –
Balance available for Appropriation 7,755.76 3,077.77
Appropriations are made as under:
– Debenture Redemption Reserve – 468.75
– General Reserve 5,400.00 1,000.00
– Proposed Dividend 596.45 397.64
– Dividend Tax 101.37 67.58
Balance Carried Forward to Next Year 1,657.94 1,143.80
DIVIDEND
Considering the improved profitability, your Directors are pleased to recommend a higher dividend @ Rs. 1.50 per share on
the equity shares of the Company for the year ended 31st March, 2010, as against Rs. 1.00 per share in the previous year. If
approved, the dividend will absorb Rs. 697.82 lakhs (including Rs. 101.37 lakhs towards dividend tax).
REVIEW OF OPERATIONS
During the year, the Company has sold 1,49,805 MT of D.I. pipes compared to previous year’s dispatches of 1,23,345 MT,
registering an increase of 21.50% and the Sales (Gross) of the Company increased from Rs. 680.47 Crores in FY 2008-09
to Rs. 710.52 Crores in FY 2009-10. The profit (PBT) for the year, however, was considerably higher at Rs. 87.98 Crores as
against Rs. 28.23 Crores reported in the previous year. The improved profitability is mainly attributable to higher volumes,
reduced input costs, better sales realization and effective fund management resulting in lower interest expenses compared
to last year.
The quantity of Low Ash Metallurgical Coke produced in the Coke Oven Plant was lower by 9% at 1,02,862 MT in FY 2009-10
as against 1,13,052 MT in FY 2008-09, due to shutdown of some ovens for major repair. The units of power generated in
the 12 MW Waste Heat Recovery Based Captive Power Plant of the Company were also lower at 536 Lakh units during the
year under review compared with 629 Lakh units in the preceding year due to reduced production of Coke Oven Plant.
The production of Mini Blast Furnace (MBF) producing liquid metal mainly for Ductile Iron Pipe Plant, for the year was
higher at 1,58,503 MT compared with 1,48,433 MT in the previous year, reflecting an increase of about 7%.
The production of D.I. Pipes was higher by about 21% at 1,49,604 MT compared with 1,23,422 MT in the preceding
year. The higher production is attributable to increased liquid metal availability from MBF and full-fledged operation of
additional Induction Furnaces and Annealing Furnace installed during the previous year.
The production of Cement during the year was lower by 21% at 68,476 MT compared to 86,812 MT in the previous year,
due to curtailed operations on account of sluggish market conditions prevailing during the year under review, particularly
affecting the demand for slag cement.
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As already reported in the previous year, the Company is in the process of repairing the Mini Blast Furnace along with
installation of Hot Blast Stoves, which is expected to be commissioned by June, 2010 to increase the liquid metal capacity
of the plant to 225,000 TPA. This, along with additional balancing equipments being installed in D.I. Pipe Plant, will
increase the D.I. Pipes capacity also to 225,000 TPA.
future PROSPECTS
Given the trend of spiraling prices of iron ore and coal and also the upcoming capacities in the D.I. Pipes sector, the
margins would be under pressure in the coming years. However, Company is adopting various cost reduction measures like
installation of Hot Blast Stoves etc., to reduce the impact.
As a measure of further cost reduction, your Company also envisages to install a Sinter Plant, which along with balancing
equipments being installed in Ductile Iron Pipe Plant will further increase the liquid metal and D.I. pipe capacity to 275,000
TPA by September, 2011. The Company plans to finance these investments through internal accruals and the Term Loans
already sanctioned by the Banks. With all these developments on course, the future outlook for the performance of your
Company appears to be positive.
DIRECTORS
Andhra Pradesh Industrial Development Corporation (APIDC), Hyderabad nominated Shri Vinod Kumar Agrawal, IAS
on the Board of Directors of your Company with effect from 24th July, 2009 in place of Shri P. Rajeswara Rao. Your
Directors place on record their appreciation for the active participation and valuable services rendered to the Company by
Shri P. Rajeswara Rao.
Industrial Development Bank of India (IDBI), Chennai nominated Shri P.M.Suresh on the Board of Directors of your
Company with effect from 19th April, 2010 in place of Shri D.R. Jawahar. Your Directors place on record their appreciation
for the active participation and valuable services rendered to the Company by Shri D.R. Jawahar.
Shri L. Madhusudhan Rao and Shri G. Bhaskara Rao retire by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment.
CORPORATE GOVERNANCE
The Corporate Governance report is set out as Annexure to this Report.
MANAGEMENT DISCUSSION AND ANALYSIS

Please refer to the management discussion and analysis section appearing elsewhere.
PARTICULARS OF EMPLOYEES
Board of Directors express its appreciation for sincere efforts made by the employees of your Company at all levels during
the year and their co-operation in maintaining cordial relations.
The information required under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975, as amended, forms part of this Report. However, the report and accounts are being sent to all the shareholders
of the Company excluding the above information. Those shareholders, who desire to obtain these particulars, would be
provided the same upon receiving such request.
STATUTORY INFORMATION
Information as per Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 related to
conservation of energy, technology absorption, foreign exchange earnings and outgo are given in Annexure-‘A’ attached
hereto and forming part of this report.
DIRECTORS’ RESPONSIBILITY STATEMENT

The Board of Directors of the Company confirms:
i) That in the preparation of annual accounts the applicable accounting standards have been followed and there has
been no material departure.
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ii) That the selected accounting policies were applied consistently and the Directors 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 as at 31st March
2010 and of the profits of the Company for the year ended on that date.
iii) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance
with the provision of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; and
iv) That the annual accounts have been prepared on a going concern basis.
AUDITORS’ report
Regarding Auditors’ observation on remuneration to Managing Director, attention is invited to note 4 of schedule 17 of the
accounts, which is self-explanatory.
AUDITORS
The Auditors, M/s. K.R. Bapuji & Co., Chartered Accountants, retire at the conclusion of the forthcoming Annual General
Meeting and being eligible, offer themselves for re-appointment.
ACKNOWLEDGEMENTS
The Board of Directors thank the Government Authorities, Financial Institutions, Banks, Customers, Vendors, Shareholders
& Investors for their continued co-operation and support to your Company.
For and on behalf of the Board of Directors
Place: Chennai L. Sridhar Mayank Kejriwal

Date: 28th April, 2010 Director Managing Director
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Annexure – ‘A’ TO DIRECTORS‘ REPORT

Information as per Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 and forming part of the Directors’ Report for the year ended 31st March 2010.
A. Conservation of Energy
a. Energy Conservation Measures taken
• New Annealing furnace fully stabilized with MBF gas as fuel thereby eliminating LDO/HSD consumption.
• Installation of Variable frequency device (VFD) for slag drier in Cement Plant.
• Variable frequency device (VFD) for cooling tower make up pump in 12 MW CPP.
• Entire liquid metal converted into DI Pipes, avoiding usage of additional power for melting pig iron.
• Furnace oil consumption reduced in 2.5 MW power plant by carrying out improved maintenance.
b. Additional investments & proposals, if any, being implemented for reduction of consumption of energy
• Repair of Mini Blast Furnace with installation of Hot Blast Stoves, which would result in higher productivity with lower coke
consumption.
• Variable frequency device (VFD) for cement mill separator.
• Initiation of Energy Audit by CII to identify potential areas for energy conservation and implement energy saving measures
suggested.
• Initiating 132 KVA sub-station for drawl of power to reduce power losses and improve quality of power.
• Revamping of Annealing Furnace – I to maximize Blast Furnace Gas consumption in place of LDO/HSD.
Energy conservation is an ongoing process and it is the constant endeavor of the Company to create awareness and motivate the
employees to conserve energy at every stage through small group activities.
c. Benefits derived from the above initiatives (a) and (b)
With implementation of above measures cost of energy particularly LDO has considerably reduced and likely to come down further
once the proposed energy saving initiatives are fully implemented, thus resulting in reduced cost of production.
B. Technology Absorption
The Chinese Technology for Annealing Furnace has been fully absorbed. For the installation and operation of ongoing Hot Blast Stoves,
we are in the process of absorbing Russian technology.
C. Foreign Exchange Earning and outgo
Foreign Exchange Earning and outgo (Rs. in Lakhs): 2009-10 2008-09
i) Foreign Exchange Earning – 167.01
ii) Foreign Exchange Used 21,589.79 27,968.87
FORM-A
A. POWER & FUEL CONSUMPTION 2009-10 2008-09
1. Electricity
a. Purchased:
Units (KWH) 36261888 14826230
Total amount (Rs.) 13,99,41,870 8,02,32,190
Rate / Unit (Rs. / KWH) 3.86 5.41
b. Own Generation:
i) Through Diesel Generator
Units (KWH) 669921 528497
Units / Ltr. of Diesel Oil 3.87 2.79
Cost / Unit (Rs. / KWH) 7.50 9.99
ii) Turbo Generator
a) 2.5 MW CPP (MBF)
Units (KWH) 15442400 17348800
Cost / Unit (Rs. / KWH) 0.14 0.25
b) 12 MW CPP (COP)
Units (KWH) 53555600 62907066
Cost / Unit (Rs. / KWH) 0.39 0.45
2. Overall LDO/HSD consumption (KL) 3579.00 6810.00
Total amount (Rs.) 12,58,21,616 27,05,16,587
Cost/Ltr. (Rs.) 35.25 39.72
B. CONSUMPTION PER MT OF PRODUCTION
Electricity (KWH)
Pig Iron 182 180
D.I. Pipe 378 360
Cement 103 101
Coke 29 23
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report on corporate governance

COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
It is a process that requires to be comprehensive for maximum effectiveness. The Company, therefore, follows a systematic
and rigorous process encompassing all regulatory disclosures, transparency, proficient operational practices, well-built
internal controls and risk management systems for enhancement of Stakeholders’ value.
The Board of Directors seeks to discharge its operational, strategic and fiduciary responsibilities in all fairness to ensure good
management practices; further, the Board represents the shareholders’ interest in terms of maximizing shareholders’ wealth
and remain committed to its responsibilities for all the constituents of its business i.e., investors, customers, employees,
suppliers and the general public.
BOARD OF DIRECTORS
Composition of Board
Company’s eight-member Board of Directors comprises:
• One Executive Director.
• Three Independent Non-Executive Directors.
• Four Non-Independent Non-Executive Directors.
The composition of the Board of Directors and the position they hold in other public companies including private companies
which are subsidiaries of public companies as on 31st March, 2010 unless otherwise stated are given in the following
table:
Executive / No. of Other* Other* Committee#

Name of Director Non-Executive / Directorships positions held
Independent held As Chairman As Member
Managing Director –
Shri Mayank Kejriwal 12 – –
Executive
Non-Executive –
Shri G. Maruthi Rao – – –
Independent
Shri Gouri Shankar Rathi Non-Executive – – –
Shri G. Bhaskara Rao Non-Executive 9 3 2
Shri L. Madhusudhan Rao Non-Executive 8 – 1
Shri L. Sridhar Non-Executive 7 1 –
Shri P.M. Suresh (i) Non-Executive –
– – –
Nominee of IDBI (Lender) Independent
Shri D.R. Jawahar (i) Non-Executive –
– – –
Nomination withdrawn by IDBI Independent
Shri Vinod Kumar Agrawal (ii) Non-Executive –
4 – –
Nominee of APIDC (Equity Investor) Independent
Shri P. Rajeswara Rao (ii) Non-Executive –
3 – 1
Nomination withdrawn by APIDC Independent
(i) IDBI nominated Shri P.M. Suresh as its nominee in place of Shri D.R. Jawahar with effect from 19th April, 2010.
(ii) APIDC nominated Shri Vinod Kumar Agrawal as its nominee in place of Shri P. Rajeswara Rao with effect from 24th July, 2009.
* Excluding Private Limited Companies, Foreign Companies and Companies under Section 25 of the Companies Act, 1956.
# Only two Committees viz., Audit, and Shareholders’ / Investors’ Grievance Committees have been considered for this
purpose.
None of the Non-Executive Directors have any pecuniary relationship or transaction with the Company in their personal
capacity.
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Attendance of each Director at the Board Meetings and the last Annual General Meeting
Five Board Meetings were held during the year 2009-10. The dates of the meetings are as follows:
27th April’ 09, 24th July’ 09, 28th August’ 09, 21st October’ 09 and 21st January’ 10.
Agenda Papers along with explanatory statements were circulated to the Directors in advance for each of these meetings.
All relevant information as recommended by the SEBI on Corporate Governance as well as items required under Clause 49
of the listing agreement were placed before the Board from time to time.
The following table highlights the attendance of each Director at the respective meetings during the year 2009-10:
Board Meetings
Name of Director AGM
Held Attended
Shri Mayank Kejriwal 5 2 NO
Shri G. Maruthi Rao 5 5 YES
Shri Gouri Shankar Rathi 5 5 YES
Shri G. Bhaskara Rao 5 1 NO
Shri L. Madhusudhan Rao 5 – NO
Shri L. Sridhar 5 4 YES
Shri D.R. Jawahar 5 5 YES
Shri P. Rajeswara Rao 5 1 NO
Shri Vinod Kumar Agrawal 5 2 NO
Audit Committee
The Audit Committee, which was constituted on 30th January, 2001 presently comprises two Independent Non-Executive
Directors and one Non-Executive Director.
The Audit Committee is expected to review the Company’s financial reporting process and its financial statements, review
the accounting and financial policies and practices, review the efficacy of the internal control mechanisms and monitor
the management of risk, review policies adopted by the Company and ensure compliance with the regulating guidelines,
review reports furnished by the internal and statutory auditors and ensure that suitable follow ups are taken.
The terms of the reference of the Audit Committee includes the powers as laid out in Clause 49 II (C) of the Listing
Agreement and role as stipulated in Clause 49 II (D) of the Listing Agreement.
The Audit Committee during the year ended 31st March, 2010 had four meetings on 27th April’09, 24th July’09,
21st October’09 and 21st January’10.
The composition of the Audit Committee as on 31st March, 2010 and attendance during the year are as under:
Sl. Executive / Non-Executive / No. of meetings
Name of Directors Position
No. Independent attended
1 Shri G. Maruthi Rao Chairman Independent, Non-Executive 4
2 Shri G. Bhaskara Rao Member Non-Executive 1
3 Shri D.R. Jawahar Member Independent, Non-Executive 4
The Audit Committee met on 28th April, 2010 for considering finalization of accounts for the year ended 31st March, 2010.
The Managing Director, Sr. General Manager-Finance & Company Secretary, Statutory Auditors and Internal Auditors are
generally present in the Audit Committee meeting as invitees.
Company Secretary acts as the Secretary to the Audit Committee.
Shri G. Maruthi Rao, Chairman of the Audit Committee attended the last Annual General Meeting of the Company held
on 28th August, 2009.
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Code of Conduct
The Board of Directors has laid down a Code of Conduct for all the Board Members and the employees in the management
grade of the Company. The code covers amongst other things the Company’s commitment to honest & ethical personal
conduct, fair competition, corporate social responsibility, sustainable environmental performance, health & safety,
transparency and compliance of laws & regulations etc. The Code of Conduct is posted on the website of the Company.
Prevention of Insider Trading Code

In pursuance of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (as amended),
the Board has approved the ‘Code of Conduct for Prevention of Insider Trading’ and authorized the Audit Committee to
implement and monitor the various requirements as set out in the Code.
Pursuant to Clause 49 of the listing agreement, it is hereby affirmed that the ‘Code of Conduct for Prevention of Insider
Trading’ approved by the Board has been complied with during the year by the senior management of the Company. This
policy is posted on the website of the Company.
Whistle Blower Policy

Pursuant to Clause 49 of the listing agreement, the Company has put in place the ‘Whistle Blower Policy’ duly approved
by the Board. Further, it is hereby affirmed that the Company has not denied any personnel access to the Audit Committee
of the Company (in respect of matters involving alleged misconduct) and that the Company has provided protection to
“Whistle Blowers” from unfair termination and other unfair or prejudicial employment practices. This policy is also posted
on the website of the Company.
Details of Remuneration to Directors, 2009-10

Presently the Non-Executive Directors do not receive any remuneration from the Company except by way of sitting fees
for attending the meetings of the Board and its Committees. Shri Mayank Kejriwal, Managing Director of the Company is
being paid a commission @ 3% on the net profits of the Company computed in the manner prescribed under Sections 349
& 350 of the Companies Act, 1956, subject to a ceiling of Rs. 200 lakhs for the year ended 31st March, 2010.
Details of Remuneration to Directors, 2009-10

Name of the Directors Sitting Fee (Rs.) Service contract / Notice Period / Severance fees
Shri Mayank Kejriwal –
2,00,00,000 Service contract
Commission
Shri G. Maruthi Rao 1,80,000 Retirement by rotation
Shri Gouri Shankar Rathi 1,00,000 -do-
Shri G. Bhaskara Rao 40,000 -do-
Shri L. Madhusudhan Rao – -do-
Shri L. Sridhar 80,000 -do-
Shri D.R. Jawahar 1,80,000 Nominee of IDBI
Shri P. Rajeswara Rao 20,000 Nomination withdrawn by APIDC w.e.f. 24.07.09
Shri Vinod Kumar Agrawal 40,000 Nominee of APIDC w.e.f. 24.07.09
Total 2,06,40,000
Shareholdings of Non-Executive Directors as on 31st March, 2010

Name No. of shares held % of Company’s equity shares
Shri L. Madhusudhan Rao 2284724 5.75
Shri G. Bhaskara Rao 2284674 5.75
Shri L. Sridhar 2282935 5.74
Shri G.S. Rathi 35000 0.09
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SHAREHOLDERS’ COMMITTEE
The composition of Shareholders’ / Investors’ Grievances Committee is as follows:
Shri Gouri Shankar Rathi – Chairman
Shri G. Bhaskara Rao – Member
Shri G. Maruthi Rao – Member
The Shareholders’ / Investors’ Grievances Committee administered the following:

a) Redress Shareholders’ and Investors’ complaints relating to non-receipt of balance sheet, transfer of shares,
non-receipt of dividends etc.
b) Consolidate and sub-divide share certificate(s).
c) Approve transmission and issue of duplicate / fresh share certificate(s).
In accordance with Clause 49 para VI(D) of the Listing Agreement of the Stock Exchanges, the Board has delegated powers
of share transfers to M/s. Karvy Computershare Private Limited (KCPL), Plot No. 17-24, Beside Image Hospital, Vittalrao
Nagar, Madhapur, Hyderabad-500 081. KCPL reviews share transfers every fortnight.
Compliance Officer
G.D. Saini, Company Secretary, Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, AP., Ph: 08578-287650-55,
Fax: 08578-287657, E-mail: gdsaini@lancoindustries.com
GENERAL body MEETINGS

Location and time for last three Annual General Meetings:
Date Venue Time

27.08.2007 Rachagunneri Village, Srikalahasthi Mandal, AP. 11.30 A.M.
No special resolution was put through postal ballot in the last year.
DISCLOSURES
• The Company has generally complied with all the mandatory requirements as specified in the revised Clause 49 to the
extent these apply and extend to the Company.
• Transactions with the related parties are disclosed in Note 11 of Schedule 17 of the Accounts in Annual Report.
• No transactions were made that may have potential conflict with the interests of the Company at large.
• The Managing Director has given declaration to the Board that he has no personal interest in any material, commercial
and financial transactions that may have any potential conflict with the interest of the Company at large.
• There were no strictures or penalties imposed by either SEBI or the Stock Exchanges or any statutory authority for
non-compliance of any matter relating to Capital Market during the last three years.
• The CEO (Managing Director) and the CFO (Sr. General Manager-Finance & Company Secretary) have furnished a
Certificate to the Board for the year ended 31st March, 2010 in compliance with the revised Clause 49.V of the Listing
Agreement(s) as amended.
MEANS OF COMMUNICATION
The Company regularly intimates quarterly financial results to the Stock Exchanges immediately after they are taken on
record by the Board. Further, coverage is given by publication of the financial results in the leading economic and vernacular
daily newspapers.
The quarterly financial results and other shareholder related information are also posted on Corporate Filing site of the Stock
Exchanges and Company’s website www.lancoindustries.com.
Management Discussion and Analysis is covered in the Directors’ Report to the Shareholders, which forms a part of the
Annual Report.
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GENERAL SHAREHOLDERS INFORMATION

The following information would be useful to our shareholders:
Sl. No. Information
1 Annual General Meeting
– Date and Time 25th August, 2010 at 11.30 AM
– Venue At Registered Office:
Rachagunneri Village-517 641
Srikalahasthi Mandal, A.P.
2 Financial Calendar Tentative Schedule
Financial Reporting for the Quarter ended June 30, 2010 End July, 2010
Financial Reporting for the Quarter ended September 30, 2010 End October, 2010
Financial Reporting for the Quarter ended December 31, 2010 End January, 2011
Financial Reporting for the Quarter ended March 31, 2011 End April, 2011
Annual General Meeting for the year ending March 31, 2011 End August, 2011
3 Book Closure Date (Both days inclusive) 19th August, 2010 to 25th August, 2010
4 Dividend Payment Date 31st August, 2010
5 Listing Details:
Listed at Mumbai Stock Exchange Ltd. &
– Equity Shares
National Stock Exchange of India Ltd.
6 Stock Code (Mumbai & National Stock Exchange) 513605 & Lancoin
7 Demat ISIN Number for NSDL & CDSL
– Equity Shares INE943C01027
8 Corporate Identity Number L74999AP1991PLC013391
9. Stock Market Data:

Mumbai Stock Exchange National Stock Exchange
Month
High (Rs.) Low (Rs.) Volume High (Rs.) Low (Rs.) Volume
Apr-09 24.00 15.50 161109 23.60 14.60 294048
May-09 37.50 19.60 464351 37.95 18.65 594948
Jun-09 37.00 26.00 318936 37.00 25.00 433828
Jul-09 33.80 23.00 259210 34.00 22.30 399761
Aug-09 48.00 30.65 926430 48.00 30.60 1275455
Sep-09 50.70 40.15 1070785 50.50 38.10 1847519
Oct-09 46.40 39.15 4032515 46.45 39.00 4402714
Nov-09 45.60 38.05 2643698 45.45 38.55 3576064
Dec-09 53.40 41.90 3530959 52.50 42.90 4162115
Jan-10 69.15 50.90 10552953 69.25 51.00 12610627
Feb-10 72.60 61.35 5147541 73.00 60.60 6191970
Mar-10 68.30 61.70 2137924 68.20 53.00 2764618
Share Price Performance in comparison to BSE / NSE Sensex / Nifty
% change in LIL Share Price % change in Sensex / Nifty
BSE NSE BSE NSE
Financial Year 2009-10 319.68 344.37 79.85 73.59
10
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10. Registrar & Share Transfer Agents Karvy Computershare Private Ltd.
Plot No. 17-24, Beside Image Hospital
Vittalrao Nagar, Madhapur, Hyderabad-500 081
11. Share Transfer System The turnaround time for completion of transfer of shares in physical
form is generally 15 days from the date of receipt, if the documents are
clear in all respects.
12. Dividend history for the last 5 years is an under:

Dividend Rate Amount including Dividend Tax
Financial Year
% (Rs. Lakhs)
2004-05 10 449.61
2005-06 5 226.70
2006-07 10 465.22
2007-08 10 465.22
2008-09 10 465.22
13. Details of querries / complaints received and resolved during the year 2009-10:
Opening Received During Resolved Pending for
Nature of Complaints
the year during the year Resolution
Non-Receipt of Dividend Nil 20 20 Nil
Warrants
Non-Receipt of Securities Nil 24 24 Nil
Non-Receipt of Annual Reports Nil 5 5 Nil
Non-Receipt of fresh/new Nil 1 1 Nil
Shares
Total Nil 50 50 Nil
As confirmed by M/s Karvy Computershare Private Ltd. (RTA of the Company) the complaints are generally attended
within 15 days from the date of receipt.
14. Distribution of Shareholding as on March 31, 2010:
Sl Category Number of % of No. of Shares % of shares

No. From To Shareholders Shareholders held held
1 1 5000 15258 88.62 1823336 4.59
2 5001 10000 917 5.33 780715 1.96
3 10001 20000 459 2.67 718972 1.81
4 20001 30000 157 0.91 403710 1.02
5 30001 40000 82 0.48 299449 0.75
6 40001 50000 83 0.48 399072 1.00
7 50001 100000 127 0.74 979390 2.46
8 100001 And above 134 0.78 34358951 86.41
Total 17217 100.00 39763595 100.00
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15. Categories of Shareholding as on 31st March, 2010:
Sl. No. of shares Percentage of

Category
No. held shareholding
A. Promoter’s holding
1 Promoters
a) Indian Promoters
i) Electrosteel Castings Limited 19301218 48.54
ii) Others 498669 1.25
b) Foreign Promoters – –
2 Persons Acting in Concert – –
Sub-Total 19799887 49.79
B. Non-Promoters Holding
3 Institutional Investors
a) Mutual Funds and UTI 17325 0.04
b) Banks, Financial Institutions, Insurance Companies (Central /
256225 0.64
State Govt. Institutions / Non-Government Institutions)
c) FIIs 10050 0.03
Sub-Total 283600 0.71
4 Others
a) Private Corporate Bodies 2939312 7.39
b) Indian Public 15126465 38.05
c) NRIs / OCBs 1569349 3.95
d) Any other (Clearing Members) 44982 0.11
Sub-Total 19680108 49.50
GRAND TOTAL 39763595 100.00
16. Dematerialisation of Shares and Liquidity:

Since the Company has entered into an agreement with both the depositories namely NSDL and CDSL for
dematerialisation of its Shares, the Shareholders of the Company have the choice to dematerialize their shares and
keep them in dematerialized form with any depository participant.
17. Outstanding convertible Instruments:

As on 31.3.2010, there are no outstanding convertible instruments.
18. Registered Office & Works:

Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, A.P., India. Ph. No. 08578-287650 (5 Lines)
19. Members can Contact us at our Registered Office:

Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, A.P., India. Ph. No. 08578-287650 (5 Lines)
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20. Status of Non-Mandatory requirements:

i) Audit Qualifications:
Observation of the Auditors’ in their report to the members of the Company have been appropriately
addressed in the note 4 of Schedule 17 (Notes on Accounts).
ii) Other Items:
The non-mandatory requirements viz., Remuneration Committee, Shareholding Rights, Training of Board
Members & Tenure of Independent Directors and Mechanism for performance evaluation of non-executive
Board Members will be implemented by the Company when required and/or deemed necessary by the
Board.
21. Secretarial Audit:

As stipulated by Securities and Exchange Board of India (SEBI), a qualified Practicing Company Secretary carries
out the Secretarial Audit to reconcile the total admitted capital with National Securities Depository Limited (NSDL)
and Central Depository Services (India) Limited (CDSL) and the total issued and listed capital. This audit is carried
out every quarter and the report thereon is submitted to Stock Exchanges and is also placed before the Board of
Directors.
Declaration by the Managing Director under Clause 49(I)(D)(ii) of the Listing Agreement
This is to declare that:

1) In pursuance of the provisions of Clause 49(I)(D) of the Listing Agreement, a Code of Conduct has been laid down by
the Company for all the Board members and the Senior Management Personnel of the Company.
2) The said Code of Conduct is also uploaded on the website of the Company at www.lancoindustries.com.
3) All Board Members and Senior Management Personnel have affirmed having complied with the said Code of Conduct,
during the year ended 31st March, 2010.
For Lanco Industries Limited
Place: Chennai Mayank Kejriwal

Date: 28th April, 2010 Managing Director
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AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE
To
The Members of
LANCO INDUSTRIES LIMITED
We have examined the compliance of conditions of Corporate Governance by Lanco Industries Limited for the year ended
on 31st March, 2010, as stipulated in clause 49 of the Listing Agreement of the said company with the stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to the procedures and implementation thereof, adopted by the company for ensuring the compliance of the
conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the
company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the company
has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the company nor the efficiency or
effectiveness with which the management has conducted the affairs of the company.
For K.R. Bapuji & Co.

Firm Registration No. 000395S
Chartered Accountants
K.R. Bapuji
Place: Chennai Partner
Date: 28th April, 2010 Membership No. 21169
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management discussion & analysis

OVERVIEW
Lanco Industries Limited (LIL) promoted by Lanco Group in 1992 set up a Mini Blast Furnace (MBF) in 1994 with an
installed capacity of 90,000 TPA to manufacture and sell Pig Iron to foundry units across India.
In 1998, LIL entered into an arrangement to supply Molten Iron and Pig Iron to Lanco Kalahasthi Castings Limited (LKCL) a
Company within the same campus engaged in the business of Iron Castings & Forging. LKCL later on added high technology
Ductile Iron Pipes (DIP) manufacturing facilities to its portfolio.
In March 2002, India’s pioneering D.I. Pipe manufacturer, Electrosteel Castings Limited (ECL) entered into a strategic
alliance with LIL and LKCL by acquiring 46.43 and 48.89 percent stake in the companies respectively. In addition to
technological support, ECL also infused fresh funds into LIL by way of equity participation and re-modeled the financial
structure, thus reducing interest costs.
In 2003, the capacity of MBF was increased from 90,000 TPA to 1,50,000 TPA and the capacity of D.I.Pipes was increased
from 60,000 TPA to 90,000 TPA at a capital outlay of approx. Rs.35 Crores.
In 2003, LKCL got merged with LIL (with effect from 1st April, 2003) to take advantage of the close synergy in the business
model of the two companies, since a large part of Pig Iron in liquid form is consumed by LKCL for manufacture of pipes.
In 2004, a major backward integration project comprising of 1,50,000 TPA Coke Oven Plant and 12 MW Waste Heat
Recovery Based Co-generating Captive Power Plant at a capital outlay of Rs.88 Crores was started.
In 2005, 1,50,000 TPA Coke Oven Plant was commissioned and commercial production was stabilized. The coke being
produced is at par with international quality of LAM coke.
In 2006, the capacity of D.I. Pipes was further increased from 90,000 TPA to 1,20,000 TPA and the 12 MW Waste Heat
Recovery Based Co-Generating Captive Power Plant was set up, which started generating power from March, 2007.
In 2007, Stamp Charging System was successfully implemented at Coke Oven Plant for producing quality metallurgical coke
at a lower cost.
In 2008, the Company implemented ERP system (SAP) to support business process and effective resource planning and
management.
In 2009, Capacity of D.I. Pipes was increased from 1,20,000 TPA to 1,80,000 TPA.
In 2010 started the Project for enhancing both the liquid metal and D.I.Pipes capacity of the plant to 2,25,000 TPA.
Value Addition
It has been our constant endeavour to promote value addition in every stride of Company’s operations starting from raw
material to finished product. Company’s own Coke Oven Plant along with 12 MW Waste Heat Recovery Based Co-
generating Captive Power Plant have strengthened the value chain.
The year in retrospect (2009-10 Vs. 2008-09)

The volumes of production and sales of Company’s products reflected a healthy growth during the year 2009-10.
Production (MT) Dispatches (MT)
Product
2009-10 2008-09 2009-10 2008-09
Molten Metal / Pig Iron* 1,58,503 1,48,433 1,57,220 1,49,970
D.I. Pipes 1,49,604 1,23,422 1,49,805 1,23,345
Cement ** 68,476 86,812 68,704 87,008
* Dispatches include 1,54,897 MT (previous year 1,36,137 MT) used for captive consumption.
** Dispatches include 13,963 MT (previous year 10,087 MT) used for captive consumption.
1,02,862 MT coke was produced in the Coke Oven Plant for captive consumption during 2009-10 vis-à-vis 1,13,052 MT
in 2008-09.
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The 12 MW Waste Heat Recovery Based Co-Generating Captive Power Plant of the Company generated 536 Lakh units
compared to 629 Lakh units in 2008-09.
The Sales (Gross) of the Company increased from Rs. 680.47 crores in FY 2008-09 to Rs. 710.52 crores in FY 2009-10.
The profit (PBT) for the year under review, however, was considerably higher at Rs. 87.98 crores as against Rs. 28.23
crores reported in the previous year mainly on account of higher volumes, reduced input costs, better sales realization and
effective fund management resulting in lower interest expenses.
Industry outlook
The water resources in the country are limited and cannot be wasted. The losses like leakage, wastage etc., need to be
arrested.
D.I. Pipes in this regard are found to be quite stronger and have longer life span, are easier to tap, require less support and
have a lower life cycle cost compared to other types of pipes used for water supply and sanitation.
With the continued emphasis given by the Government of India for laying pipelines for water and sewerage transportation,
the demand for D.I. Pipes is expected to remain strong in the coming years.
Business
Raw-Materials
Due to fall in the prices of key raw materials like Coal and iron ore in the year 2009-10, the ratio of raw material cost to
turnover has reduced to 54% in the year 2009-10 as against 63% in the previous year, reflecting a substantial reduction in
input cost.
Quality
At Lanco, we strongly believe that our brand image and market share can be better enhanced by offering qualitative and
specialized products to our customers to cater to their needs for critical applications. Company’s quality systems are ISO
9001:2008 accredited. BSI, UK has approved Ductile Iron pipes manufactured by the Company for using Kite Mark license.
Safety, Health & Environment

The Company is dedicated to the safety and health of its employees and stakeholders. Our Safety, Health & Environment
Management Systems are top driven and vibrant. Top Management of the Company is committed to maintaining highest
standard of safety, health and environment protection and is also committed to meet all applicable statutory requirements
and prevention of pollution.
To conserve the fresh water, the Company is implementing its admired project to use primarily treated sewerage water of
Tirupati Municipal Corporation for industrial purpose. The water will be transported to the Company’s Sewerage Treatment
Plant (STP) at its works through a pipe line covering a distance of about 21 KM and will be further treated for its use in the
Plant. The Project is in full swing and is expected to be completed in this calendar year.
Company’s environment management systems are ISO14001:2004 certified. The Company has sponsored various social
activities for spreading awareness of environment and safety issues in the neighbouring villages.
Corporate Social Responsibility (CSR)

LIL has a longstanding commitment to addressing the needs of the society. The Company firmly believes that for any
economic development to be meaningful, the benefits from the business must trickle down to the society at large. It is of the
firm view that the corporate goals must be aligned with the larger societal goals. As part of its Corporate Social Responsibility,
the Company undertakes a range of activities to improve living conditions of people in the neighbouring villages. These
initiatives include extending infrastructure support to schools, free medical camps, and other village development initiatives
like street lighting, development of roads etc,.
Information Technology
The Company believes that Information Technology has a vital role to play in supporting the business functions and drive
innovation and competitiveness and facilitates faster decision making to gain the edge in a dynamic market situation. The
Company with its recent growth and planned expansions in the near future thought of establishing a strong information
management system and it is with this profound objective successfully implemented 1st Phase of SAP ERP system in
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2008-09 and has initiated actions for implementation of SAP 2nd Phase in the year 2009-10 which is at the fag end of
completion.
Opportunities and threats

The key economic driver for the industry includes water infrastructure. Lack of safe drinking water and proper sanitation
has led to a growing emphasis on water infrastructure. This will result in high demand for DI pipes due to durability and
effective handling in rough terrain. The increased emphasis given by GoI for water infrastructure development in the
country will trigger growth for the Company’s business.
Raw material availability and volatile prices coupled with upcoming capacity additions by other players in the sector will
have a bearing on the margins of the Company. However, measures like long term planning to ensure availability of raw
materials & economization of its cost, continuous focus on productivity improvement and cost control initiatives, higher
capacity utilization etc., will help the Company to protect its margins and achieve sustained growth.
Outlook
The Company has been taking adequate steps for improvement in plant efficiency, strengthening value addition, continuously
focusing on cost control measures and has been successful in managing financial resources effectively. As part of further
backward integration, the Company also envisages to install a Sinter Plant, which along with balancing equipments
being installed in Ductile Iron Pipe Plant will further increase the liquid metal and D.I. pipe capacity to 275,000 TPA by
September, 2011. Higher capacity utilization and growth in demand for D.I.Pipes indicate towards a positive outlook for
the performance of the Company in the coming years.
HUMAN RESOURCES
We at LIL, believe that attraction, preservation and development of human resources is the vital for organizational
development and high caliber people are a source of competitive advantage for our business.
The Company is committed to attract the right talent, give appropriate compensation, retain them and also develop them
to meet the current and future organizational goals. The Company’s HR management team is dedicated to this work.
The employees are properly trained and motivated to take up multiple responsibilities. As a measure of organizational
development, Kaizen Scheme has been introduced and there is remarkable response for the same and the participation
level by all cadres of employees has been on a high note.
Risks and Concern

This has been dealt with separately in the Annual Report under “Risk Management”.
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

We firmly believe that a system of effective internal controls is a critical component of organizational management and a
foundation for the safe and sound operations of the organization. A system of strong internal controls can help to ensure that
the Company will comply with laws and regulations as well as policies, plans, internal rules and procedures, and decrease
the risk of unexpected losses or damage to the Company’s reputation.
The Company has a well established Internal Control System, the conformity of which is periodically assessed by Internal
Audit and regularly reviewed by the Statutory Auditors and the Audit Committee of the Board. Recommendations if any,
are assessed and implemented, if found necessary.
CAUTIONARY STATEMENT
The statements found in this report on management discussion and analysis may constitute “forward-looking statements”,
which reflect management’s current views with respect to certain future events and financial performance and include any
statement that does not directly relate to any historical or current fact. Such statements are based on currently available
information and are subject to various risks and uncertainties that could cause actual results to differ materially from those
projected or implied in the “forward-looking statements” and from historical trends. These “forward-looking statements”
are based upon current assumptions of future events which may not prove to be accurate. Actual results could, however,
materially differ from those projected, expressed or implied.
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risk management
The Company is continuously focused on assessing the risks related to its business and committed to adopt much stronger risk
management practices to ensure effective risk mitigation. The Company’s risk management is in line with the requirements
of amended Clause 49 of the Listing Agreement.
ECONOMIC RISK
Owing to volatile market conditions, the prices of major raw materials and other inputs used by the Company may increase
from time to time, resulting in threat of margin pressure.
To mitigate this risk, the Company has taken various steps like finalizing long term supply contracts whereby the price
and availability of materials is covered for a stipulated period. This apart, Company, as a further measure of backward
integration, is contemplating to install a Sinter Plant, which besides reducing Company’s dependence on calibrated iron
ore, which is costlier and in short supply compared to iron ore fines will result in reduced cost of production. Besides, the
Company has been taking on a continuous basis, adequate steps for improvement in plant efficiency, strengthening value
addition and cost control measures, which will help the Company to insulate it from this risk.
COMPETITOR RISK
In view of increasing upcoming capacities by other existing players as well as entry of new players in the market, the
Company is exposed to the risk of competitors.
To counter this risk, Company is taking various marketing initiatives like ensuring on time delivery and improved after sales
service and its continuous thrust for quality improvement will help the Company in enhancing its brand image and sustain
its market share. Further, with the continued emphasis given by the Govt. of India for Water Infrastructure Projects and
sanitation in the country, the demand for D.I.Pipes is expected to grow on a sustainable basis.
ENVIRONMENT RISK
As the Company is a metal industry, by virtue of its manufacturing process is subjected to the risk of environment pollution.
The Company has effective and vibrant Environment Management Systems, which are certified by ISO 14001:2004. Further,
the Company is committed for maintaining highest environment protection standards and is dedicated to meet applicable
statutory requirements for preservation of environment and greenbelt development.
INDUSTRIAL relations RISK

The Company being labour intensive is faced with the threat of labour unrest.
The Company has been maintaining exceptionally good relations with the labour, since inception and there have been no
loss of man-days on this account. The Company expects that with the employee friendly approach being adopted by it, the
industrial relations will continue to remain cordial in the coming years also.
FOREIGn EXCHANGE RISK

In view of heavy reliance on imports for catering to its raw materials requirement coupled with overseas borrowings, the
Company is open to the risk of volatility in the foreign exchange rates.
To counter this risk, the Company regularly reviews its foreign exchange exposure and initiates appropriate far-sighted
actions to ensure effective foreign exchange management to lessen the risk of volatility in exchange rates.
PAYMENT RISK
The Company, by virtue of its major customers being Metro Water Boards, Municipal Corporations and other Govt.
institutions is exposed to the risk of delay and default in payments.
As most of the water projects are funded by the Government or overseas funding agencies, the risk of defaults in this regard
is minimum. In respect of other customers, most of the supplies are covered by Letters of Credit/ Bank Guarantees. Further,
as a cautionary measure, the credit worthiness and the past payment record of every customer is meticulously evaluated
before supply to minimize such risk.
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AUDITORS’ REPORT
To
The members of
1. We have audited the attached Balance Sheet of Lanco Industries Limited (“the Company”) as at 31st March, 2010 and
also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) issued by the Central Government of India
in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 (hereinafter referred to as ‘the said Order’)
and on the basis of such examination of the books and records of the Company as we considered appropriate and the
information and explanations given to us during the course of the audit, we enclose in the Annexure a statement on
the matters specified in the paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
a) We have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b) In our opinion, proper books of accounts 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, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement
with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report
comply with the Accounting Standards referred in sub-section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors of the Company and taken on record by
the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2010 from being
appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) Subject to Note No. 4 of Schedule 17 i.e. provision for commission payable to the Managing Director aggregating to
Rs. 200 lakhs, pending approval of the Company in general meeting, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies
and other notes thereon, give the information required by the Companies Act, 1956, in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010,
ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

K.R. Bapuji
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ANNEXURE TO AUDITORS’ REPORT

Re: Lanco Industries Limited
(Referred to in paragraph 3 of our report of even date)
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation
of fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management during the year as per a
detailed program drawn for the said purpose, which in our opinion is reasonable having regard to the size of the
Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c) No substantial part of the fixed assets of the Company has been disposed off during the year.
ii) a) As explained to us, the management has conducted physical verification of inventories during the year, except the
materials lying with third parties. In our opinion, the frequency of the said verification is reasonable.
b) The procedures of physical verification of inventories followed by the management were reasonable and adequate
in relation to the size of the Company and nature of its business.
c) In our opinion and according to the information and explanations given to us, the Company has maintained proper
records of inventories. The discrepancies noticed on physical verification of inventories as compared to book
records were not material.
iii) a) According to the information and explanations given to us, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, clause (b), (c) and (d) of paragraph 4 of the Order are not applicable.
b) According to the information and explanations given to us, the Company has not taken any loans, secured
or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, clause (f) and (g) of paragraph 4 of the Order are not applicable.
iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control
system commensurate with the size of the Company and nature of its business, for the purchase of inventory, fixed
assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed
in the internal control system in respect of the said areas. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control system of the Company.
v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to
be maintained under that Section.
b) In our opinion and according to the information and explanations given to us, there were no transactions made in
pursuance of contracts or arrangements referred to in v(a) above and exceeding the value of Rupees five lakhs with
any such party.
vi) The Company has not accepted any deposits from public covered under Sections 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and Rules framed thereunder.
vii) In our opinion, the Company’s internal audit system is commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the Company relating to the products, where, pursuant
to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under
Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a detailed examination of the records with a
view to determining whether they are accurate or complete.
ix) a) According to the information and explanations given to us and the records of the Company examined by us, the
Company is generally regular in depositing the undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, service-tax, customs
duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities and there
were no undisputed dues outstanding as at 31st March, 2010 for a period exceeding six months from the date they
became payable.
b) According to the information and explanations given to us, the disputed dues of sales tax, income-tax, customs
duty, wealth-tax, excise duty, service-tax and cess, if any, that have not been deposited on account of disputed
matters pending before appropriate authorities as at 31st March, 2010 are as follows:
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Amount
Sl. Nature of Period to which it Forum where the
Name of the Statute (Rs. in
No. dues relates dispute is pending
lakhs)
1. Central Sales Tax Sales tax 97.61 1999-00
Sales Tax Appellate Tribunal
Act, 1956 47.70 2005-06
2. APGST Act, 1957 -do- 67.52 2002-03 Sales Tax Appellate Tribunal
3. Income-tax Act 1961 Income-tax 56.11 2003-04 Income Tax Appellate Tribunal
3.65 2004-05 -do-
0.14 2006-07 Commissioner of Income-tax (Appeals)
4. Central Excise Act, Central Excise 17.00 2005-06 Commissioner (Appeals)
1944 Duty/Interest 43.00 2006-07 to 2008-09 -do-
– 16.50 2007-08 CESTAT
x) The Company has no accumulated losses as at the end of the financial year and it has not incurred cash losses in the
current and immediately preceding financial year.
xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in
repayment of dues to financial institutions and banks or debenture holders.
xii) According to the information and explanations given to us, the Company has not granted any loans and advances on
the basis of security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of
clause (xiii) of paragraph 4 of the Order are not applicable to the Company.
xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader
in shares, securities, debentures and other investments. Therefore, the provisions of clause (xiv) of paragraph 4 of the
Order are not applicable to the Company.
xv) According to the information and explanations given to us, the Company has not given guarantees for loans taken by
others from Banks or Financial Institutions.
xvi) In our opinion and according to the information and explanations given to us, on overall basis, the term loans have
been applied for the purposes for which they were obtained.
xvii) Based on the information and explanations given to us and on an overall examination of the cash flow statement and
the Balance Sheet of the Company, in our opinion, the funds raised by the Company on short term basis have prima
facie not been used for long term investment.
xviii) The Company has not made any preferential allotment of shares during the year.
xix) According to the information and explanations given to us, during the year, the Company has fully redeemed the
secured debentures and there was no fresh issue of debentures during the year. Accordingly, the provisions of clause
(xix) of paragraph 4 of the Order are not applicable to the Company.
xx) The Company has not raised any money through a public issue during the year. Accordingly, the provisions of clause
(xx) of paragraph 4 of the Order are not applicable to the Company.
xxi) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements
and as per the information and explanations given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.

K.R. Bapuji
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BALANCE SHEET AS AT 31st March, 2010
31st Mar’10 31st Mar’09

Schedule
I. SOURCE OF FUNDS
1. Shareholders Funds
a) Share capital 1 3,976.36 3,976.36
b) Reserves & Surplus 2 13,713.91 8,549.77
2. Loan Funds
a) Secured Loans 3 26,486.50 33,227.46
b) Unsecured Loans 4 6,130.29 4,878.54
3. Deferred Tax Liability (Net) 3,435.74 3,123.73
TOTAL 53,742.80 53,755.86
II. APPLICATION OF FUNDS

1. Fixed Assets 5
a) Gross Block 40,286.29 38,974.86
b) Less: Depreciation 12,527.20 10,734.88
c) Net Block 27,759.09 28,239.98
d) Capital Work in Progress 3,441.21 425.37
2. Investments 6 – –
3. Current Assets, Loans & Advances

a) Inventories 7 11,519.49 14,436.48
b) Sundry Debtors 8 11,845.80 11,966.16
c) Cash & Bank Balances 9 1,516.42 3,550.27
d) Loans and Advances 10 5,581.47 6,020.93
30,463.18 35,973.84
Less: Current Liabilities & Provisions 11
a) Current Liabilities 6,853.94 10,108.38
b) Provisions 1,066.74 774.95
7,920.68 10,883.33
Net Current Assets 22,542.50 25,090.51
TOTAL 53,742.80 53,755.86
Notes on Accounts 17
As per our report attached For and on behalf of the Board

K.R. Bapuji L. Sridhar Director

Partner
Membership No. 21169 Mayank Kejriwal Managing Director
Place: Chennai
Date: 28th April, 2010 G.D. Saini Company Secretary
22
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PROFiT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2010
Year ended Year ended
Schedule
INCOME
Sales (Gross) 71,051.85 68,046.95
Less: Excise Duty 1,993.89 3,575.34
Sales (Net) 69,057.96 64,471.61
Other Income 12 71.93 210.18
Increase / (Decrease) in Stocks 13 503.99 (246.82)
TOTAL 69,633.88 64,434.97
EXPENDITURE
Purchases 640.58 607.33
Raw Materials Consumed 14 37,578.14 39,775.51
Manufacturing & Other Expenses 15 18,761.11 14,979.99
Financial Charges 16 2,061.82 4,607.48
TOTAL 60,836.25 61,612.15
Profit Before Tax 8,797.63 2,822.82

Provision for Tax – Current 1,984.16 318.20
MAT Credit Utilised / (Entitlement) 707.49 108.14
Provision for Deferred Tax 312.01 546.78
Provision for Fringe Benefit Tax – 14.41
Profit After Taxation 5,793.97 1,835.29
Prior Period Adjustment-Taxation 67.99 –
Debenture Redemption Reserve written back 750.00 –
Balance brought forward from previous year 1,143.80 1,242.48
Profit Available for Appropriation 7,755.76 3,077.77
APPROPRIATIONS
Transfer to Debenture Redemption Reserve – 468.75
Transfer to General Reserve 5,400.00 1,000.00
Proposed Dividend 596.45 397.64
Tax on Dividend 101.37 67.58
Balance Carried to Balance Sheet 1,657.94 1,143.80
7,755.76 3,077.77
Basic & Diluted Earning per Share (Rupees) 14.57 4.62
No. of Shares used in computing Basic &
39,763,595 39,763,595
Diluted EPS
Notes on Accounts 17


Partner
Place: Chennai
23
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cash flow statement for the year ended 31st march, 2010
2009-10 2008-09
A. Cash Flow from operating activities
Net Profit Before Tax 8,797.63 2,822.82
Adjustments for:
Interest & Financial Charges 2,061.82 4,607.48
Provision For Doubtful debts & advances 750.00 –
Loss on Sale of Fixed Assets 0.18 4.22
(Profit) / Loss on sale of Investments (10.25) 4,596.35 (21.27) 6,232.27
Operating Profit before working Capital changes 13,393.98 9,055.09
Adjustments for:
(Increase) / decrease in Loans & Advances (310.54) (731.27)
(Increase) / decrease in Trade & Other Receivables 120.36 (3,151.85)
(Increase) / decrease in Inventories 2,916.99 (2,343.57)
Increase / (decrease) in Trade Payables (3,157.89) (431.08) 787.50 (5,439.19)
Cash Generated from Operations 12,962.90 3,615.90
Direct Taxes Paid (2,691.65) (440.76)
Prior period adjustment – Taxation 67.99 –
Cash from Operating Activities 10,339.24 3,175.14
B. Cash Flow from Investing Activities

Purchase of Fixed Assets (4,330.19) (3,077.18)
Sale of Fixed assets 0.46 16.14
Income on Investments 10.25 21.27
Net Cash From Investing Activities (4,319.48) (3,039.77)
C. Cash Flow from FinancingActivities

Long Term Borrowings-Receipts / (Repayments)[Net] (3,209.90) (288.78)
Short Term Borrowings-Receipts / (Repayments)[Net] (2,279.31) 8,291.13
Interest Paid (2,099.18) (4,542.33)
Dividend Paid (397.64) (397.64)
Tax on Dividend (67.58) (67.58)
Net Cash From Financing Activities (8,053.61) 2,994.80
Net Increase / (Decrease) in Cash &
(2,033.85) 3,130.17
Cash Equivalents (A+B+C)
Cash & Cash Equivalent as at Beginning of Year 3,550. 27 420.10
Cash & Cash Equivalent as at End of Year 1,516.42 3,550.27


Partner
Place: Chennai
24
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schedules annexed to and forming part of accounts

1. SHARE CAPITAL
Authorised Capital
5,30,00,000 Equity Shares of Rs. 10/- each 5,300.00 5,300.00
Issued, Subscribed and Paid up Capital 3,97,63,595 3,976.36 3,976.36

Equity shares of Rs. 10 each fully Paid up. (Including
2,67,85,500 Equity shares allotted as fully paid up
pursuant to the Scheme of Amalgamation without
payment being received in cash)
TOTAL 3,976.36 3,976.36
2. RESERVES & SURPLUS

Opening Additions Transfer As at 31st
Balance During the During the Mar’ 2010
Year Year
A. Reserves
Capital Reserves:
– Share forfeiture account 0.97 0.97
– State Subsidy 55.00 55.00
Debenture Redemption Reserve 750.00 – 750.00 –
General Reserve 6,600.00 5,400.00 – 12,000.00
7,405.97 5,400.00 750.00 12,055.97
B. Surplus
Profit & Loss Account 1,143.80 6,543.97 6,029.83 1,657.94
TOTAL 8,549.77 11,943.97 6,779.83 13,713.91
Security as 31st Mar’10 31st Mar’09

per note (Rs. in Lakhs) (Rs. in Lakhs)
3. SECURED LOANS
Debentures:
500 -– G-Sec Linked Secured Redeemable 1 – 4,250.00
Non-Convertible debentures of Rs.10 lakhs each,
fully redeemed during the year
Term Loans from Banks:
Rupee Loan 2 8,974.68 6,841.00
Foreign Currency Loans 3 – 845.33
Working Capital Facilities from Banks 4
Rupee Loan 7,356.93 10,709.21
Foreign Currency Loan 10,154.89 10,581.92
TOTAL 26,486.50 33,227.46
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Security Notes:
1. G-Sec Linked Privately Placed Secured Redeemable Non-Convertible Debentures were secured by a Joint Mortgage
by deposit of title deeds in respect of certain immovable properties and by English Mortgage on certain immovable
properties and hypothecation over movable assets of the Company (other than book debts) subject to prior charge of
the Company’s Bankers on specified movable assets for working capital requirements and by corporate guarantee of a
group Company upto fifty percent of the outstanding amount. These debentures have been fully redeemed during the
Year.
2. Rupee term loans from Banks are secured by way of first pari-passu charge on the movable & immovable properties of
the Company both present and future subject to prior charge of the Company’s Bankers on current assets for working
capital requirements. A loan of Rs.4200/- Lakhs included in above is also secured by corporate guarantee of a group
Company upto fifty percent of the outstanding amount.
3. Foreign Currency Loan from Banks was secured by way of joint mortgage by deposit of title deeds on certain immovable
properties ranking pari-passu with existing lenders and hypothecation over movable assets of the Company (other
than book debts) subject to prior charge of the Company’s Bankers on specified movable assets for working capital
requirements. These loans have been fully paid during the Year.
4. Working Capital facilities are secured by hypothecation of raw material, semi-finished goods and finished goods,
consumables, stores and spares, book debts, both present and future of the Company.

4. UNSECURED LOANS
Sales Tax Deferment 4,630.29 4,878.54
(Payable within one year Rs. 901.50 Lakhs,
Previous Year Rs. Nil)
Short Term Rupee Loan from a Bank: 1,500.00 –
(Repayable within the year)
TOTAL 6,130.29 4,878.54
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5. fixed assets (Rs. in Lakhs)

PARTICULARS GROSS BLOCK DEPRECIATION NET BLOCK
Deletions/
Sl. Additions
Cost Sales Cost As on For Total As on As on
No. NAME OF THE ASSET During Adjustments
1-Apr-09 During the 31-Mar-10 1-Apr-09 The Year 31-Mar-10 31-Mar-10 31-Mar-09
the year
year
1 Land 1,483.78 – – 1,483.78 – – – – 1,483.78 1,483.78
2 Factory Buildings 5,392.71 154.56 – 5,547.27 1,283.11 182.86 – 1,465.97 4,081.30 4,109.60
3 Non-Factory Buildings 611.15 705.84 – 1,316.99 85.58 12.66 – 98.24 1,218.75 525.57
4 Plant & Machinery 27,682.03 330.68 – 28,012.71 7,771.09 1,366.25 – 9,137.34 18,875.37 19,910.94
5 Electrical Installation 2,546.34 76.67 – 2,623.01 1,013.92 122.10 – 1,136.02 1,486.99 1,532.42
6 Office Equipment 354.45 11.82 2.25 364.02 152.48 23.46 1.95 173.99 190.03 201.97
7 Furniture 153.49 3.85 – 157.34 94.12 10.07 – 104.19 53.15 59.37
8 Vehicles 519.75 30.93 0.67 550.01 309.53 39.73 0.33 348.93 201.08 210.22
9 Intangible Assets 231.16 – – 231.16 25.05 37.47 – 62.52 168.64 206.11
TOTAL 38,974.86 1,314.35 2.92 40,286.29 10,734.88 1,794.60 2.28 12,527.20 27,759.09 28,239.98
Previous year figures 35,516.23 3,513.82 55.19 38,974.86 9,127.88 1,641.84 34.84 10,734.88 28,239.98

6. INVESTMENTS – –
TOTAL – –
Units of Mutual Funds purchased and sold during the year (Face value Rs. 10/- each except otherwise stated):
Purchase Sales
Particulars Value
Nos. Nos.
Rs. in lakhs
ICICI Prudential Flexible Income Plan Regular(Units of Rs.100/-
74,863.15 75.00 74,863.15
each)
HDFC Cash Management Fund - Saving Plan 94,365,543.75 10035.00 94,365,543.75
HDFC Cash Management Fund - Treasury Advantage Plan 127,543,619.66 12786.46 127,543,619.66
Total 221,984,026.56 22896.46 221,984,026.56

7. INVENTORIES
(Note 1 (F) of Schedule 17)
Stores & Spares 3,344.87 2,882.46
Raw Materials 5,778.80 9,662.19
Work in process 1,396.49 998.48
Finished Goods and By-Products 999.33 893.35
TOTAL 11,519.49 14,436.48
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8. SUNDRY DEBTORS-UNSECURED
Exceeding six months:
– Considered Good 666.50 226.97
– Considered Doubtful 162.81 162.81
829.31 389.78
Other Debts 11,179.30 11,739.19
12,008.61 12,128.97
Less: Provision for doubtful debts 162.81 162.81
TOTAL 11,845.80 11,966.16
9. CASH AND BANK BALANCES

Cash on hand 4.60 4.28
Balance with Scheduled Banks:
– Current Accounts 1,293.31 3,446.48
– Deposit Accounts 201.43 86.61
– Unpaid Dividend Account 17.08 12.90
TOTAL 1,516.42 3,550.27
10. LOANS AND ADVANCES

Advances recoverable in cash or in kind or for
Value to be received – Unsecured
[Net of Rs.4338 Lakhs, (Previous Year Rs. 4545.48)
received from Associate Company]
– Considered good 4,544.62 4936.86
– Considered Doubtful 750.00 –
Advance Income Tax (Net of Provision) 132.71 29.97
MAT Credit Entitlement – 640.98
Balance with Excise authorities 904.14 413.12
6,331.47 6,020.93
Less: Provision for Doubtful Advances 750.00 –
TOTAL 5,581.47 6,020.93
11. CURRENT LIABILITIES AND PROVISIONS

A. Current Liabilities
Sundry Creditors (Note 6 of Schedule 17) 5,919.98 9,343.88
Advances from Customers 867.71 665.07
Interest Accrued but not due 49.17 86.53
Unclaimed Dividend * 17.08 12.90
6,853.94 10,108.38
B. Provisions
Staff Benefit 368.92 309.73
Proposed Dividend 596.45 397.64
Tax there on 101.37 67.58
1,066.74 774.95
TOTAL 7,920.68 10,883.33
*The same is not due for payment to Investors Education and Protection Fund.
28
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12. OTHER INCOME
Profit on Sale of Current Investments 10.25 21.27
Miscellaneous Income 61.68 188.91
TOTAL 71.93 210.18
13. INCREASE / (DECREASE) IN STOCKS

Closing Stock
Work in process 1,396.49 998.48
Finished Goods 999.33 2,395.82 893.35 1,891.83
Less: Opening Stock

Work in process 998.48 927.17
Finished Goods 893.35 1,891.83 1,211.48 2,138.65
TOTAL 503.99 (246.82)
14. RAW MATERIALS CONSUMED

Opening Stock 9,662.19 7,452.40
Add: Purchases 34,335.33 42,592.63
43,997.52 50,045.03
Less: Cost of materials sold 640.58 607.33
43,356.94 49,437.70
Less: Closing Stock 5,778.80 9,662.19
total 37,578.14 39,775.51
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15. MANUFACTURING EXPENSES
Power & Fuel 1,598.63 1,034.68
Stores & Spares Consumed 8,368.23 8,026.71
Handling & Transport charges 999.40 1,030.32
Salaries, Wages, Bonus and Other Benefits 2,192.77 1,823.54
Contribution to Provident and Other Fund 196.26 150.34
Employees Welfare 201.87 168.87
Directors’ Remuneration (Note No. 4 of
206.40 7.20
Schedule-17)
Rent 35.05 31.93
Rates & Taxes (including Wealth Tax Rs. 0.42 Lakhs,
Previous year 0.30 Lakhs) 71.19 88.00
Insurance 153.54 109.47
Freight, Packing, Forwarding & LD Charges 639.04 62.31
Commission to Selling Agents 910.83 929.39
(Profit)/Loss on sale of fixed Assets 0.18 4.22
Repairs & Maintenance:
– Plant & Machinery 1,289.27 556.10
– Buildings 91.18 57.78
– Others 0.66 8.09
Provision for doubtful debts & advances 823.50 –
Auditors’ Remuneration:
– Audit fee 2.75 2.75
– Tax Audit 1.25 1.25
– Certification fee 0.66 0.30
– Out of Pocket Expenses 0.07 0.28
Bad debts written off 73.50 69.21
Less: Transferred from Bad Debts Provision (73.50) – (69.21) –
Donations 61.58 2.73
Miscellaneous Expenses 916.80 883.73
TOTAL 18,761.11 14,979.99
16. interest & financial charges

Interest on Debentures 235.04 533.98
Interest on Term loans 1,097.75 721.47
Interest on Working Capital 937.43 2,510.19
Financial Charges 255.79 288.17
(Gain)/Loss on Foreign Exchange (183.10) 714.10
Sub-Total 2,342.91 4,767.91
Less: Interest Earned 281.09 160.43
(TDS Rs. 4.27 Lakhs, Previous Year Rs. 4.24 Lakhs)
TOTAL 2,061.82 4,607.48
30
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17. NOTES ON ACCOUNTS

1. Significant Accounting Policies
A) General
The financial statements are prepared under the historical cost convention in accordance with the provisions of
the Companies Act, 1956 and materially comply with the mandatory Accounting Standards issued by The Institute
of Chartered Accountants of India except to the extent disclosed in the following notes.
B) Use of Estimates
The preparation of financial statements require management to make estimates and assumptions that affect the
reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the Balance Sheet
date and the reported amounts of income and expenses during the year.
Contingencies are recorded when it is probable that a liability will be incurred and the amounts can reasonably
be estimated. Differences between the actual results and estimates are recognized in the year in which the results
are known / materialized.
C) Fixed Assets and Depreciation
1) Tangible Assets
i) Gross Block
a) Fixed Assets are stated at cost of acquisition inclusive of inland freight, duties and taxes and incidental
expenses related to acquisition with due adjustments for Cenvat / Vat credits.
b) Capital Work-in-progress includes Machinery to be installed, Construction & Erection Materials and
Advances and unallocated pre-operative expenses etc.
ii) Depreciation
a) Depreciation is provided on fixed assets used during the year under Straight Line Method at the rates
specified in the Schedule XIV of the Companies Act, 1956.
b) Assets acquired and costing Rs.5000/- or less are being depreciated fully in the year of addition/
acquisition.
2) Intangible Assets
Intangible assets are stated at cost of acquisition less accumulated amortization. This includes computer
software packages (ERP and others). Amortization are done on straight line basis at the rates specified in the
Schedule XIV of the Companies Act, 1956.
D) Sales
Sales include excise duty, wherever applicable and rebate, discounts, claims, expenses incurred on consignment
sales etc., are excluded there from. Sales on consignment and expenses there against are being accounted for on
receipt of account sales from the respective consignee.
E) Investments
Long Term Investments are stated at cost less permanent diminution, if any, in value. Current Investments are
carried at lower of cost or fair value.
F) Inventories
i) Inventories are valued at lower of the cost or net realizable value. Cost in respect of raw materials, Stores and
Spares have been calculated on weighted average basis, which includes expenses incidental to procurement
of the same.
ii) By-Products are valued at net realizable value.
iii) Cost in respect of finished goods includes manufacturing expenses, factory and administrative overheads and
excise duty.
iv) Cost in respect of work-in-progress represents, cost incurred upto the stage of completion.
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G) Revenue Recognition
All expenses and income to the extent considered payable and receivable respectively unless specifically stated to
be otherwise are accounted for on mercantile basis
H) Foreign Currency Transactions
Foreign currency assets and liabilities are translated at exchange rates prevailing at the year end. The loss or gain
thereon and also on exchange differences on settlement of the foreign currency transactions during the year are
adjusted to the Profit and Loss Account. The difference between the forward rate and exchange rate at the date of
transaction is recognized as income or expense over the life of the contracts.
I) Retirement Benefits
i) Provident & Family Pension Fund: In accordance with the provisions of the Employee Provident Funds and
Miscellaneous Provisions Act, 1952, eligible employees of the company are entitled to receive benefits with
respect to provident fund, a defined contribution plan in which both the Company and employee contribute
monthly to Provident Fund Scheme by the Central Government at a determined rate and the Company’s
contribution is charged off to the Profit & Loss Account.
ii) Leave Encashment Benefits: Leave encashment benefits payable to employees while in service, retirement
and death while in service or on termination of employment with respect to accumulated leaves outstanding
at the year end are accounted for on basis of actuarial valuation at the balance sheet date. The present value
of such obligation is determined by the projected unit credit method as at the balance sheet date through
which the obligations are settled. The resultant actuarial gain or loss on change in present value of defined
benefit obligation or change in return of the plan assets is recognized as an income or expense in the Profit
and Loss Account.
iii) Gratuity: Contributions under the scheme for defined benefit under the Payment of Gratuity Act, 1972, is
determined on the basis of actuarial valuation and are funded to Life Insurance Corporation of India and
recognized as year’s expenditure.
J) Miscellaneous Expenses
Preliminary Expenses and expenditure in connection with issue of shares are being written off over a period of ten
years or earlier.
K) Borrowing Costs
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are
capitalized as part of cost of such asset till such time as the asset is ready for its intended use or sale. A qualifying
asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All
other borrowing costs are recognized as an expense in the period in which they are incurred.
L) Contingent Liabilities
Contingent liabilities are generally not provided for and are disclosed by way of notes to the accounts.
M) Segment Reporting
The accounting policies adopted for segment reporting are in line with the accounting policies adopted in financial
statements.
N) Export Benefits
Export benefits arising on account of entitlement for duty free imports are accounted for through import of
materials. Such benefits under Duty Entitlement Pass Books are accounted for on accrual basis.
O) Government Grants & Other Claims

Revenue grants including subsidy/rebates, refunds, claims etc., are credited to Profit and Loss Account under
‘Other Income’ or deducted from the related expenses. Grants relating to fixed assets are credited to Capital
Reserve Account or adjusted in the cost of such assets as the case may be, as and when the ultimate realizability
of such grants etc., are established/ realized.
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P) Income Tax
Provision for Tax is made for both current and deferred taxes. Current tax is provided on the taxable income using
the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing differences,
which are capable of reversal in subsequent periods are recognized using tax rates and tax laws, which have been
enacted or substantively enacted.
Q) Derivative Instruments
Derivative transactions of Interest and Foreign Currency Swap and Option contracts are accounted for on their
settlement and accordingly the gains / losses arising there from are recognized in the Profit & Loss Account as and
when the settlement takes place in accordance with the terms of respective contracts.
2. Contingent Liabilities not provided for

2009-10 2008-09
a) Guarantees given by banks on behalf of the Company 1,269.29 1,214.16
b) Bills discounted with banks – 591.58
c) Various demands raised, which in the opinion of the management are
not tenable and are pending with various forums / authorities:
i) Sales Tax 826.28 713.41
ii) Excise Custom Duty & Service Tax 103.50 4,313.00
iii) Income Tax 59.76 3.07
3. Estimated amount of Capital contracts not provided for (net of advances) 2,055.00 385.88
4. Directors’ Remuneration
– Commission to Managing Director 200.00 –
– Directors’ Sitting Fees 6.40 7.20

Computation of Commission payable to Managing Director Year ended 31.03.2010

Profit before tax – 8,797.63
Add: Directors’ Remuneration 206.40
Loss on sale of fixed assets 0.18
Wealth Tax paid 0.42
207.00
9,004.63
Less: Profit on sale of investments 10.25
Net Profit for the purposes of Directors’ Commission 8,994.38
Commission @ 3% i.e., Rs. 269.83 lakhs subject to a ceiling of Rs. 200 lakhs 200.00
The commission of Rs. 200 lakhs payable to Mr. Mayank Kejriwal, Managing Director is subject to the approval of the
shareholders in the Annual General Meeting of the Company. Pursuant to Section 198 and other applicable provisions
of the Companies Act, 1956, necessary steps are being taken for approval by the shareholders in the ensuing Annual
General Meeting of the Company.
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5. In the opinion of the Management, Current Assets and Loans & Advances have the value at which these are stated in
the Balance Sheet, if, realized in the ordinary course of business, unless otherwise stated and adequate provisions for
all known liabilities have been made and are not in excess of the amount reasonably required.
6. Disclosure of Sundry Creditors under current liabilities is based on the information available with the Company
regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act,
2006” (the Act). There are no delays in payment made to such suppliers and there are no overdue amounts outstanding
as at the Balance Sheet date. Based on the above, the relevant disclosure u/s 22 of Act are as follows:
Rs. in lakhs
Principal amount outstanding at the end of the year Nil
Interest amount due at the end of the year Nil
Interest Paid to suppliers Nil
7. Interest during construction and pre-operative expenses allocated to Fixed Assets added during the year is as
follows:
2009-10 2008-09
Interest 51.20 131.75
Salaries, Wages, Gratuity & other Benefits 38.38 27.13
Bank Charges – 64.00
8. The disclosures required under Accounting Standard 15 “Employee Benefits” notified in the Companies (Accounting
Standards) Rules 2006, are given below:
(Rs. in Lakhs)
Defined Contribution Plan: 31.3.2010 31.3.2009
Employer’s Contribution to Provident Fund 126.28 105.45
Benefits
Gratuity Leave Gratuity Leave
(Funded) (Unfunded) (Funded) (Unfunded)
Present Value of Obligations:
Balance as at the beginning of the year 169.57 169.76 124.33 137.93
Service Cost 27.94 32.74 22.01 27.29
Interest Cost 13.56 13.40 9.95 10.57
Benefits Paid -4.69 -4.59 -9.81 -11.53
Actuarial (Gain) / Loss 15.45 3.48 23.09 5.50
Balance as at the closing of the year 221.83 214.79 169.57 169.76
Fair Value of Plan of Assets:
Balance as at the beginning of the year 149.61 – 121.06 –
Expected Return of Plan Assets 17.62 – 13.08 –
Actuarial (Gain) / Loss – – – –
Contributions 47.88 4.59 25.28 11.53
Benefits Paid -4.69 -4.59 -9.81 -11.53
Balance as at the closing of the year 210.42 – 149.61 –
34
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Reconciliation of fair value of assets and

obligations:
Fair Value of Plan of Assets 210.42 – 149.61 –
Present Value of Obligations 221.83 214.79 169.56 169.76
Amount recognized in Balance Sheet 11.41 214.79 19.95 169.76
Expenses recognized during the year:
Current Service Cost 27.94 32.74 22.01 27.29
Interest Cost 13.56 13.40 9.95 10.57
Expected Return of Plan Assets -17.62 – -13.08 –
Actuarial (Gain) / Loss 15.45 3.48 23.09 5.50
Net Cost 39.33 49.62 41.97 43.36
Investment Details:
Funds Managed by the Insurer 100% 0% 100% 0%
Others 0% 0% 0% 0%
Total 100% 0% 100% 0%
Actuarial Assumptions:
Mortality Table (LIC) 1994-96 (ultimate) 1994-96 (ultimate)
Discount Rate (per annum) 8% 8% 8% 8%
Expected Return of Plan Assets (per annum) 8% 0% 8% 0%
Rate of escalation in salary (per annum) 7% 15% 7% 15%
9. Balances of Sundry Debtors / Creditors are subject to confirmation and reconciliation, if any.
10. Segment Reporting

The Company’s main business is manufacturing and selling pipes. In addition, the Company is also manufacturing &
selling cement, Producing power & LAM Coke for captive use, which does not qualify as a reportable segment as per
Accounting Standard –17 on segment reporting issued by the Institute of Chartered Accountants of India. Accordingly,
in the opinion of the management, Pipes is the only reportable segment.
11. Disclosure of Related Parties / Related Party Transactions

Name of the Related Parties with whom transactions were carried out during the year and description of
relationship:
a) Associate Company:
M/s Electrosteel Castings Limited
b) Key Management Personnel & their relatives (KMP):
Shri Mayank Kejriwal, Managing Director
c) Enterprise where KMP / relatives of KMP have significant influence or control
Lanco Hills Technology Park Private Limited+
35
702698_Lanco_AR2010.indd 35 6/25/2010 1:10:45 PM

Disclosure of Related Party Transactions (Rs. in Lakhs):

Sl. Associate Key Management KMP have
Nature of Transactions
No. Company Personnel control
1. Sale of Goods 4781.96 Nil 0.33
2. Trade Receivables 347.57 Nil Nil
3. Purchase of Goods 1843.69 Nil Nil
4. Interest received (net) 36.33 Nil Nil
5. Paid for other services 18.89 Nil Nil
6. Deposit received & outstanding 4338.00 Nil Nil
7. Remuneration – Mr. Mayank Kejriwal Nil 200.00 Nil
+ Shri L. Madhusudhan Rao, Shri L. Sridhar and Shri G. Bhaskara Rao the Directors of the Company are interested in Lanco
Hills Technology Park Private Limited.
12. Break-up of deferred tax assets and deferred tax liabilities:

(Rs. in Lakhs)
Opening as on (Charge) or Credit Closing as on
Particulars
01.04.2009 During the year 31.03.2010
Deferred Tax Assets 357.85 52.50 410.35
Deferred Tax Liabilities (3481.58) (364.51) (3846.09)
Net Deferred Tax Assets / (Liabilities) (3123.73) (312.01) (3435.74)
13. As stipulated in AS-28, the Company assessed potential generation of economic benefits from its business units and
is of the view that assets employed in continuing business are capable of generating adequate returns over their useful
lives in the usual course of business, there is no indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
14. Fixed deposits with scheduled banks are lodged with Government Departments, Customers and Banks.
15. a) Category wise outstanding derivatives contracts entered for hedging as on 31st March 2010
Current Year Previous Year
Sl.
Category Currency No. of Amount Amount Underlying Purpose
No. No. of Deals
Deals In US$ In US$
1 Forward USD/INR 5 40,49,915 7 1,65,89,689 Buyers Credit
2 Option USD/INR 1 10,00,000 2 40,00,000 Buyers Credit
b) Un-hedged foreign Currency Exposures as on 31st March 2010

Sl. No. Nature Currency Current Year Previous Year
1 ECB USD Nil 16,66,667
2 Imports USD Nil 1,94,114
3 Buyers Credit & interest USD 1,63,76,568 5,67,924
4 Capital Goods & Interest USD 11,50,350 Nil
36
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16. Information in respect of goods produced / manufactured (in MT)

2009-10 2008-09
ITEMS Installed Installed
Production Production
Capacity $ Capacity
D.I. Spun Pipes 1,80,000 1,49,604 1,80,000 1,23,422
Pig Iron * 1,50,000 1,58,503 1,50,000 1,48,433
Cement + 90,000 68,476 90,000 86,812
Coke ** 1,50,000 1,02,862 1,50,000 1,13,052
$ As certified by the Management.
* includes 1,54,897 M.T. (Previous year 1,36,137 M.T.) used for captive consumption.
+ Includes 13,963 M.T. (Previous Year 10,087 M.T.) used for Captive Consumption.
** For captive consumption.
Licensed Capacity is not applicable in terms of Government of India’s Notification No. S.O. 477 (E)dated 25th July 1991.
17. Turnover, Closing and Opening Stocks

Turnover Closing Stock Opening Stock
Product Year
MT Rs. Lakhs MT Rs. Lakhs MT Rs. Lakhs
2009-10 149805 63,772.68 1835 540.39 2036 720.59
D.I. Spun Pipes
2008-09 123345 53,143.92 2036 720.59 1959 573.38
2009-10 157220* 455.91 1416 195.07 133 15.75
Pig Iron & Molten Metal
2008-09 149970* 3994.73 133 15.75 1670 289.90
2009-10 68704+ 1873.82 324 6.75 552 12.63
Cement
2008-09 87008+ 2816.52 552 12.63 748 13.09
2009-10 – 2,820.78 257.12 – 144.38
Scrap & By Products
2008-09 – 5,909.86 – 144.38 – 335.11
Others 2009-10 – 2,128.66$ – –
2008-09 – 2,181.92$ – – – –
2009-10 71,051.85 – 999.33 – 893.35
Total
2008-09 68,046.95 893.35 – 1,211.48
* Includes 1,54,897 M.T. (Previous Year 1,36,137 MT) used for Captive Consumption.
+ Includes 13,963 M.T. (Previous Year 10,087 MT) used for Captive Consumption.
$ Includes sale of purchased coal Rs. 329.12 lakhs (4470 M.T.) and others Rs. 311.46 lakhs {Previous Year Coke: Rs. 595.80
lakhs (2369 MT), Others Rs. 39.12 lakhs}.
18. Raw Materials Consumed

2009-10 2008-09
MT Rs. in Lakhs MT Rs. in Lakhs
Coke 3,370 808.43 7,524 1,539.67
Iron Ore 2,96,882 9,487.43 3,02,064 10,076.04
Coking Coal 1,85,155 20,253.94 1,72,456 20,720.35
Others – 7,028.34 – 7,439.45
Total 37,578.14 39,775.51
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19. Value of Imported & Indigenous Raw Materials, Spare Parts, Components Consumed
2009-10 2008-09
Rs. in Lakhs % Rs. in Lakhs %
Imported 22,802.13 49.63 24,494.78 51.24
Indigenous 23,144.24 50.37 23,307.44 48.76
Total 45,946.37 100.00 47,802.22 100.00
20. CIF Value of Imports
2009-10 2008-09
Rs. in Lakhs Rs. in Lakhs
Raw Materials 18,722.72 24,714.56
Stores & Spares 1,580.16 2,218.92
Capital Goods 982.34 763.46
21. Expenditure in Foreign Currency
2009-10 2008-09
a) Interest & Financial Charges 283.04 188.13
b) Traveling Expenses 2.71 0.42
c) Legal & Professional Charges 15.34 37.79
d) Payment of Dividend on Equity Shares in Foreign Currency
– No. of Non-Resident shareholders 20 21
– No. of shares held 348549 377031
– Dividend (Rs.) 348549 377031
22. Earnings in Foreign Exchange
2009-10 2008-09
Sale of Carbon Credits Nil 167.01
23. Disclosure of loans and advances as per the requirement of Clause 32 of the listing agreement with the Stock Exchanges
in India.
i) The Company does not have any subsidiary and it has not given any loans and advances in the nature of loans to
its associates.
ii) Interest free loans as per general rules of the Company have been given to its employees. Aggregate amount of
such advances and loans outstanding at the year end is Rs. 20.36 lakhs (Previous year Rs. 36.66 lakhs)
24. Previous Years Figures have been re-grouped / re-arranged wherever necessary.
The Schedules referred to above form an integral part of the Balance Sheet.

Partner
Place: Chennai
38
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SCHEDULE-VI
PART-IV
BALANCE SHEET ABSTRACT AND COMPANY BUSINESS PROFILE
I. Registration Details
Registration No. 1 3 3 9 1 State Code 0 1
Balance Sheet Date 3 1 0 3 2 0 1 0
Date Month Year
II. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Right Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III. Position of Mobilisation and Development of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
5 3 7 4 2 8 0 5 3 7 4 2 8 0
SOURCES OF FUNDS
Paid-up Capital Reserves & Surplus
3 9 7 6 3 6 1 3 7 1 3 9 1
Secured Loans Unsecured Loans
2 6 4 8 6 5 0 6 1 3 0 2 9
Deferred Tax Liability (Net)
3 4 3 5 7 4
APPLICATION OF FUNDS
Net Fixed Assets Investments
3 1 2 0 0 3 0 N I L
Net Current Assets Misc. Expenditure
2 2 5 4 2 5 0 N I L
Profit & Loss Account
N I L
IV. Performance of the Company (Amount in Rs. Thousands)
Turnover (Gross Revenue) Total Expenditure
7 1 1 2 3 7 8 6 2 3 2 6 1 5
Profit / Loss before Tax Profit / Loss after Tax
+/- +/-
4 8 7 9 7 6 3 4 5 7 9 3 9 7
(Please tick appropriate box (+) for Profit, (-) for Loss)
Earning per share in Rs. Dividends Rate %
1 4 . 5 7 1 5
V. Generic Name of principal product / Service of Company (as per monetary terms);
Item Code No.: (ITC Code) Production Description
7 3 0 3 . 0 0 D . I . P I P E S
2 5 0 2 . 2 9 C E M E N T
For and on behalf of the Board
L. Sridhar Director
Mayank Kejriwal Managing Director
G.D. Saini Company Secretary
39
702698_Lanco_AR2010.indd 39 6/25/2010 1:10:46 PM


Regd. Office: Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, A.P. India
NOTICE
NOTICE is hereby given that Eighteenth Annual General Meeting of Lanco Industries Limited will be held at the Registered
Office of the Company at Rachagunneri, Srikalahasthi Mandal, Chittoor District, Andhra Pradesh on Wednesday, the 25th
day of August, 2010 at 11.30 A.M. to transact the following business:
ORDINARY BUSINESS
1. To receive, consider and adopt the audited Balance Sheet as at 31st March, 2010 and Profit & Loss Account for the year
ended as on that date, together with the Auditors’ Report and Directors’ Report thereon.
2. To declare dividend.
3. To appoint a Director in place of Shri L.Madhusudhan Rao who retires by rotation and being eligible, offers himself for
re-appointment.
4. To appoint a Director in place of Shri G.Bhaskara Rao who retires by rotation and being eligible, offers himself for re-
appointment.
5. To appoint Statutory Auditors and fix their remuneration and for this purpose to consider and if thought fit to pass with
or without modification(s), the following resolution as an Ordinary Resolution:
“Resolved that M/s K.R. Bapuji & Co., Chartered Accountants (Registration No. 000395S), Hyderabad be and are
hereby re-appointed as Auditors of the Company to hold office from the conclusion of this Annual General Meeting
till the conclusion of next Annual General Meeting of the Company at a remuneration to be decided mutually between
the Board of Directors and the Auditors including reimbursement of out of pocket expenses”.
AS SPECIAL BUSINESS:
6. To consider and if thought fit to pass with or without modification(s), the following resolution as an Ordinary Resolution:
“Resolved that in partial modifications of the earlier resolution passed by the members of the Company on 27th
August, 2007 and in accordance with the provisions of Sections 198, 269, 309, 310 & 311 read with schedule XIII and
other applicable provisions, if any, of the Companies Act, 1956, or any statutory amendments or re-enactment thereof,
and subject to such other approvals, as may be necessary, approval of the Company be and is hereby accorded for
payment of remuneration to Shri Mayank Kejriwal, Managing Director of the Company during the remaining period of
his tenure with effect from the Financial Year 2009-10.
Commission: Commission not exceeding 3% on the net profits of the Company computed in the manner prescribed
under Sections 349 & 350 of the Companies Act, 1956 for the relevant Financial Year subject to a maximum limit to be
decided by the Board every year and subject to the overall ceiling stipulated in Sections 198 & 309 of the Companies
Act, 1956 read with Schedule XIII.”

By Order of the Board
Place: Chennai G.D. Saini

Dated: 28th April, 2010 Sr. General Manager – Finance
& Company Secretary
40
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Notes:
1. The relative Explanatory Statement setting out material facts pursuant to Section 173 (2) of the Companies Act, 1956,
relating to Item No. 6 is annexed hereto.
2. The information required to be provided under the Listing Agreement entered into with Stock Exchanges, regarding the
Directors who are proposed to be appointed/re-appointed is annexed to this Notice.
3. A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote, instead of
himself / herself. The proxy, so appointed, need not be a member of the Company. In order to be effective, the proxy
form(s) duly completed and signed should reach the registered office of the Company at least 48 hours before the
commencement of the meeting.
4. The dividend, if declared, will be paid to those members whose names appear on the Register of Members of the
Company as on 25th August, 2010.
5. The register of members and transfer books of the Company will remain closed from 19th August, 2010 to 25th August,
2010 (both days inclusive).
6. Members are requested to notify any change in their addresses to the Company.
7. Members desiring to seek any information / clarification on the annual accounts are requested to write to the Company
at least 7 days before the Annual General Meeting.
8. Pursuant to the provisions of Section 205 A of the Companies Act, 1956, as amended, dividend for the financial year
ended 31st March, 2004, on remaining unpaid for a period of 7 years will be transferred to the Investor Education and
Protection Fund established by the Central Government by 30th August, 2011. Shareholders who have not encashed
the dividend warrants so far for the financial year ended on 31st March, 2004 are requested to make their claim to the
Company at Lanco Industries Limited, Rachagunneri – 517 641, Srikalahasthi Mandal, Chittoor Dist. AP before 20th
August, 2011. It may also be noted that once the unclaimed dividend is transferred to the fund as above, no claim shall
lie in respect thereof.
ANNEXURE TO THE NOTICE

Explanatory Statement under Section 173 (2) of the Companies Act, 1956:
As required by Section 173(2) of the Companies Act, 1956, the following explanatory statement sets out material facts
relating to the Special Business of the accompanying Notice dated 28th April, 2010.
Item No. 6
Shri Mayank Kejriwal, aged 56 years was appointed as Managing Director of the Company for a period of 5 years effective
from 30th April, 2007. He is also the Joint Managing Director of M/s. Electrosteel Castings Limited. Initially, to enable the
Company to generate revenue, he was not taking any remuneration from the Company. However, it is now considered
to be appropriate that a commission not exceeding 3% on net profits of the Company computed in the manner provided
under sections 349 & 350 of the Companies Act, 1956 subject to a maximum amount to be decided by the Board every
year, be fixed as his remuneration from the financial year 2009-10 till the period of his tenure.
Under the able leadership of Shri Mayank Kejriwal, the Company has attained new heights and achieved its best ever
financial performance during the Financial Year 2009-10. Shri Mayank Kejriwal has rich experience of the industry and
he is also the Joint Managing Director of M/s. Electrosteel Castings Limited. In the meeting held on 28th April, 2010, your
Directors have approved the remuneration payable to him as above for the Financial Year 2009-10 and remaining period
of his tenure pursuant to provisions of Sections 198, 269, 309 read with Schedule XIII and other applicable provisions of
the Companies Act, 1956.
41
702698_Lanco_AR2010.indd 41 6/25/2010 1:10:46 PM

The remuneration payable to Shri Mayank Kejriwal requires the approval of the members. Shri Mayank Kerjiwal holds
Directorship in various limited Companies viz., Electrosteel Castings Limited, Electrosteel Thermal Power Limited, Elcast
Finance Limited, Escal Finance Services Limited, Electrosteel Thermal Coal Limited, Murari Investment and Trading Co.
Ltd., Cellour Vyapaar Ltd., Electrocast Sales India Ltd., Malay Commercial Company Ltd., G.K. Investments Ltd., Uttam
Commercial Company Ltd. and Axis Steels Ltd.
None of the Directors of the Company are interested in the resolution.
The above may also be considered as disclosure required under Section 302 of the Companies Act, 1956.
By Order of the Board

Place: Chennai G.D. Saini

Dated: 28th April, 2010 Sr. General Manager – Finance
& Company Secretary
Information required to be furnished as per the listing agreement:

As required under the listing agreement, the particulars of Directors who are proposed to be appointed / re-appointed are
given below:
Name of Director(s) Shri L. Madhusudhan Rao Shri G. Bhaskara Rao

Date of Birth 8th January, 1966 1st June, 1954
Date of Appointment 1st November, 1991 1st November, 1991
Qualifications M.Tech. & M.S. M.E.
Special Expertise Techno-Economic Expert. Techno-Economic Expert.
Directorship in other Public Limited (1) Lanco Infratech Ltd. (2) Aban (1) Lanco Infratech Ltd. (2) Udupi
Companies. Power Company Ltd. (3) Udupi Power Power Corporation Ltd. (3) Aban Power
Corporation Ltd. (4) Lanco Power Company Ltd. (4) Lanco Amarkantak
Trading Ltd. (5) Lanco Net Ltd. Power Ltd. (5) Lanco Group Ltd.
(6) Lanco Amarkantak Power Ltd. (6) Lanco Power Trading Ltd. (7) Lanco
(7) Lanco Anpara Power Ltd. Anpara Power Ltd. (8) Lanco Babandh
Power Ltd.
Audit Committee Member: Lanco Amarkantak Power Chairman: (1) Lanco Anpara Power Ltd.
Limited (2) Lanco Amarkantak Power Limited
(3) Lanco Group Limited
Member: Lanco Infratech Ltd.
Remuneration Committee – –
Shareholders / Grievances – –
Committee
42
702698_Lanco_AR2010.indd 42 6/25/2010 1:10:46 PM


Regd. Office: Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, A.P. India.

Proxy Form
Proxy No. Folio No.
No. of Shares Client ID No.
DP ID No.
I/We.................................................................................................... of......................................................................
being a member/members of Lanco Industries Limited hereby appoint...........................................................................of
.............................................or failing him.....................................................of..........................................as my/our

proxy to attend and vote for me/us and on my/our behalf at the Eighteenth Annual General Meeting of the Company
to be held on Wednesday, the 25th day of August, 2010 at 11.30 A.M. at the Registered Office of the Company at
Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, A.P., India and at any adjournment thereof.
Signed this ................................. day of .................. 2010.
Signature ............................................................. Affix Rs. 1

Revenue
Stamp
Notes:
1) Proxy Form should be signed across the stamp as per specimen signature(s) registered with the Company.
2) In order to be effective, Proxy Form must reach the Company’s Registered Office not less than 48 hours
before the meeting.
Cut Here

Regd. Office: Rachagunneri-517 641, Srikalahasthi Mandal, Chittoor District, A.P. India.
Attendance Slip
Please complete this attendance slip and hand it over at the entrance of the meeting VENUE.
I hereby record my presence at the Eighteenth Annual General Meeting of the Company at the Registered Office of the
Company at Rachagunneri-517641, Srikalahasthi Mandal, Chittoor District, A.P. India at 11.30 AM on Wednesday,
the 25th day of August, 2010.
Name of the member(s) in block letters:

Folio No. / DP ID No. – Client ID No.:
No. of shares:
Signature of the member(s) or proxy:

Notes:
1) Interested Joint Members may obtain attendance slips from the Registered Office of the Company.
2) Members / Joint Members / Proxies are requested to bring the attendance slips with them. Duplicate slips will
not be issued at the entrance.
43
702698_Lanco_AR2010.indd 43 6/25/2010 1:10:46 PM

702698_Lanco_AR2010.indd 44 6/25/2010 1:10:46 PM
VISION
We aim to be world class, committed to customer satisfaction
and to encourage the spirit of leadership amongst our
dedicated team by creating a healthy environment for
continuous growth, profit and prosperity.
Contents
Corporate Information 1
Directors’ Report 2
Annexures to Directors’ Report 5
Report on Corporate Governance 6

Shri G S Rathi, Director of the Company, handing over the cheque
Auditors’ Certificate on Corporate Governance 14 to Shri Konijeti Rosaiah, Hon’ble Chief Minister of Andhra Pradesh
for Cyclone Relief Fund
Management Discussion & Analysis 15
Risk Management 18
Auditors’ Report 19
Annexure to Auditors’ Report 20
Balance Sheet 22
Profit and Loss Account 23
Cash Flow Statement 24
Schedules 25
Balance Sheet Abstract 39
Notice of Annual General Meeting 40
Neighbouring villagers at the free eye camp organised by

the company at its plant on 26th January 2010

LANCO INDUSTRIES
LIMITED
Regd. Office & Works:
Rachagunneri-517 641, Srikalahasthi Mandal
Chittoor District, Andhra Pradesh
Annual Report
2009-2010

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LANCO INDUSTRIES

Lanco_AR2010_Cover_24thJun10.indd 1 6/24/2010 3:49:23 PM

Annexures to Directors’ Report 5

Report on Corporate Governance 6

Annexure to Auditors’ Report 20

Profit and Loss Account 23

Cash Flow Statement 24

Balance Sheet Abstract 39

Notice of Annual General Meeting 40

Neighbouring villagers at the free eye camp organised by

Lanco_AR2010_Cover_24thJun10.indd 2 6/24/2010 3:49:29 PM

Directors Shri G. Maruthi Rao

Solicitors Khaitan & Co.

Bankers ICICI Bank Ltd.

Registered Office & Works Rachagunneri-517 641

Share Transfer Agents M/s. Karvy Computershare Private Limited

702698_Lanco_AR2010.indd 1 6/25/2010 1:10:42 PM

702698_Lanco_AR2010.indd 2 6/25/2010 1:10:42 PM

MANAGEMENT DISCUSSION AND ANALYSIS

DIRECTORS’ RESPONSIBILITY STATEMENT

702698_Lanco_AR2010.indd 3 6/25/2010 1:10:42 PM

For and on behalf of the Board of Directors

Place: Chennai L. Sridhar Mayank Kejriwal

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Annexure – ‘A’ TO DIRECTORS‘ REPORT

702698_Lanco_AR2010.indd 5 6/25/2010 1:10:42 PM

report on corporate governance

Executive / No. of Other* Other* Committee#

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702698_Lanco_AR2010.indd 7 6/25/2010 1:10:42 PM

Prevention of Insider Trading Code

Whistle Blower Policy

Details of Remuneration to Directors, 2009-10

Details of Remuneration to Directors, 2009-10

Shareholdings of Non-Executive Directors as on 31st March, 2010

702698_Lanco_AR2010.indd 8 6/25/2010 1:10:42 PM

The Shareholders’ / Investors’ Grievances Committee administered the following:

GENERAL body MEETINGS

Date Venue Time

702698_Lanco_AR2010.indd 9 6/25/2010 1:10:42 PM

GENERAL SHAREHOLDERS INFORMATION

9. Stock Market Data:

702698_Lanco_AR2010.indd 10 6/25/2010 1:10:42 PM

12. Dividend history for the last 5 years is an under:

14. Distribution of Shareholding as on March 31, 2010:

Sl Category Number of % of No. of Shares % of shares

702698_Lanco_AR2010.indd 11 6/25/2010 1:10:43 PM

15. Categories of Shareholding as on 31st March, 2010:

Sl. No. of shares Percentage of

16. Dematerialisation of Shares and Liquidity:

17. Outstanding convertible Instruments:

18. Registered Office & Works:

19. Members can Contact us at our Registered Office:

702698_Lanco_AR2010.indd 12 6/25/2010 1:10:43 PM

20. Status of Non-Mandatory requirements:

21. Secretarial Audit:

This is to declare that:

For Lanco Industries Limited

Place: Chennai Mayank Kejriwal