ocl india ltd. · 2 ocl india limited annual report 2012-13 notice is hereby given that sixty third...

OCL INDIA LTD.ANNUAL REPORT 2012-13

At OCL, we think of cement as not just a binder but harbinger of progress in the country’s

progress that touches upon the economic, cultural, social and inclusive aspects. We are not

just making cement. We are adding hues of positivity to it so that every structure it is used in

the making of becomes the symbol of country’s economic, social and cultural progress. From

Hirakud Dam to Shri Jagannath Temple to Vidyasagar Setu to Gandhi Sagar Bridge and many

other significant structures across the country have a part of us in it. A part that is perhaps

minute but pivotal. The strength and sturdiness of these structures is for all to see. But what is

more important to us is the thought that our cement has become an enabler of value creation

for our multiple stakeholders. Therefore, we are happy to be celebrating the hues of cement.

Printed on Recycled Paper

CONTENTS

CORPORATE INFORMATION

PRESIDENTSMr. M. H. DalmiaMr. R. H. Dalmia

DIRECTORSMr. Pradip Kumar Khaitan – ChairmanMr. Gaurav Dalmia – Managing DirectorMr. D. N. DavarDr. S. R. JainDr. Ramesh C. VaishMr. Puneet Yadu DalmiaMr. V. P. SoodMr. D. D. Atal – Whole Time Director & CEO

BANKERS / FINANCIAL INSTITUTIONSUnited Bank of IndiaState Bank of IndiaPunjab National BankUCO BankAXIS Bank Ltd.International Finance CorporationExport-Import Bank of India Ltd.Yes Bank Ltd.

AUDITORSV. Sankar Aiyar & Co. Chartered Accountants

CEMENT AND REFRACTORY WORKS & REGISTERED OFFICERajgangpur-770 017 (Odisha)

KAPILAS CEMENT WORKSCuttack-753 004 (Odisha)

DELHI OFFICE17th, Floor, Narain Manzil, 23 Barakhamba Road,New Delhi-110 001

Management ReportsNotice 02

Directors’ Report 06

Management Discussion and Analysis 09

Corporate Governance Report 26

Financial StatementsStandalone Financial Statements 35

Consolidated Financial Statements 65

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OCL INDIA LIMITED ANNUAL REPORT 2012-13

Notice is hereby given that Sixty Third Annual General Meeting

of the Company will be held at the Company’s Rest House at

Rajgangpur - 770017 (District Sundargarh, Odisha State) on

Saturday, the 14th day of September, 2013 at 4.30 p.m. to transact

the following business:

ORDINARY BUSINESS:

(1) To consider and adopt the audited Profit and Loss Account of

the Company for the Financial Year 2012-13 and the Balance

Sheet as at the 31st day of March, 2013 together with the

Reports of the Auditors’ and the Directors’ thereon.

(2) To declare dividend on equity shares and to consider and,

if thought fit, to pass, with or without modification(s) the

following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the recommendation made by

the Board of Directors of the Company, a dividend at the rate

of `1.50 per paid up equity share of `2/- each to the equity

shareholders of the Company whose names appear in the

Register of Members as on September 14, 2013 be and is

hereby declared out of the current profits of the Company for

the Financial Year ended March 31, 2013 and the same be in

addition to the interim dividend of `2.50 per paid up equity

share of `2/-each, declared and distributed by the Company in

the month of February 2013.

RESOLVED FURTHER THAT dividend be paid through ECS/

NECS/any other electronic mode to the shareholders whose

particulars are available with the Company/Registrar and

Share Transfer Agent/Depository Participant and to others by

posting the dividend warrants within 30 days hereof to all the

shareholders who are entitled to receive the payment.”

(3) To appoint a Director in place of Dr. S. R. Jain who is retiring by

rotation and being eligible offers himself for re-appointment.

(4) To appoint a Director in place of Shri Puneet Yadu Dalmia who

is retiring by rotation and being eligible offers himself for re-

appointment.

(5) To appoint Auditors and fix their remuneration and in this

regard to consider and, if though fit, to pass with or without

modification(s) the following resolution as an Ordinary

Resolution:

“RESOLVED THAT the Auditors of the Company, M/s. V. Sankar

Aiyar & Co., Chartered Accountants, New Delhi, who retire at

this meeting, being eligible and willing to act as Auditors, be

and are hereby appointed Auditors of the Company to hold

office till the conclusion of the next Annual General Meeting

of the Company at a remuneration of `16,00,000/- (Rupees

Sixteen Lacs only) plus such out of pocket expenses, as may be

incurred by them in connection with the audit of Company.”

SPECIAL BUSINESS:

(6) To consider and if thought fit to pass, with or without

modification(s), the following resolution as a Special Resolution:

“RESOLVED THAT pursuant to Section 309(7) of the Companies

Act, 1956, approval given at the Annual general Meeting

held on June 06, 1969 for payment of commission @1% (one

percent) of the net yearly profits of the Company to the Non-

Whole Time Directors be and is hereby renewed for a further

period of five years commencing from the Financial Year to be

ended on March 31, 2014 upto and including the Financial Year

of the Company ending as on March 31, 2018 and that such

commission be divided among the Non-Whole Time Directors

of the Company in manner to be decided by the Board from

time to time.”



“RESOLVED THAT pursuant to the provisions of section 17(1)

read with Section 192A of Companies Act, 1956, the Objects

Clause of Memorandum of Association of the Company, i.e.,

clause III, be and is hereby altered by deletion of present Sub

Clause (2 I) and substitution thereof by the following new Sub

Clause (2 I):

“To carry on in India or elsewhere the business of developing,

constructing, establishing, commissioning, setting up,

operating and maintaining electric power generating stations

based on conventional/ non-conventional resources by using

wind, solar, water, coal, naptha, fuel oil, furnace oil, natural gas,

liquefied natural gas, biomass including bagasse or any other

carbohydrate available above the earth or by from offshore

or onshore sites in India or outside India for transmission,

distribution and marketing the power generated/transmitted

in India or outside India at such voltages as required by the

customers and invest in research & development of power

from conventional or non-conventional or renewable energy

sources for generation and also to offer consultancy for

power transmission, distribution and power marketing to any

customer”.

RESOLVED FURTHER THAT Mr. D. D. Atal, CEO and Whole Time

Director and Ms. Rachna Goria, Company Secretary, be and are

hereby authorized severally to take all the necessary steps and/

or actions and to do such things and deeds as may be necessary

NOTICE

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Management Reports Financial Statements

to give effect to this Resolution and also to sub-delegate this

authority to any other person which they deem fit.”



“RESOLVED THAT pursuant to the provisions of section 149(2A)

of the Companies Act, 1956, approval be and is hereby

accorded for commencement by the Company of all or any of

the businesses specified in Sub Clause (2 I) of Clause III (Objects

Clause) of the Memorandum of Association of the Company

as they appear after their insertion in the Objects Clause and

become effective.

RESOLVED FURTHER THAT Mr. D. D. Atal, Whole Time Director

and Ms. Rachna Goria, Company Secretary, be and are hereby

authorized severally to take all the necessary steps and/or

actions and to so such things and deeds as may be necessary

to give effect to this resolution and also to sub-delegate this

authority to any other person which they deem fit.”

By Order of the Board of Directors

for OCL INDIA LIMITED

Place: New Delhi (Rachna Goria)

Dated: May 29, 2013 Company Secretary

NOTES:

(1) Special Resolutions at Sl. Nos. 7 and 8 require consent of

Shareholders through Postal Ballot.

(2) EVERY MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED

TO APPOINT PROXY TO ATTEND AND VOTE INSTEAD OF HIM/

HER AND SUCH PROXY NEED NOT BE A MEMBER. The proxies

should, however, be deposited at Registered Office of the

Company not less than 48 hours before the time of the meeting.

(3) Corporate members are requested to send a duly certified copy

of the Board Resolution authorizing their representatives to

attend and vote at the meeting.

(4) Members/proxies should fill in the attendance slip for attending

the meeting.

(5) The Register of Members will remain closed from September

06, 2013 to September 14, 2013 (both days inclusive).

(6) C B Management Services (P) Limited, P-22 Bondel Road,

Kolkata - 700 019 are the Registrars & Share Transfer Agents

of the Company to handle share transfers both in physical and

electronic segments and other shares related matters. The

shareholders are requested to correspond with the Registrars

at the above address.

(7) You are requested to quote Folio number and in case your

shares are dematerialized quote your Client ID Number

and your DP ID Number in all your correspondence with the

Company/Registrars for facilitating quick disposal of the letters.

(8) Shareholders holding shares in electronic form are required to

file their nomination forms with their Depository participants.

Shareholders holding shares in physical form can submit their

nomination forms to the Registrars at Kolkata. Nomination

forms can be obtained from the Company or its Registrars at

Kolkata.

(9) In view of the green initiative of the Ministry of Corporate

Affairs, shareholders holding shares in physical mode/

electronic mode are requested to please register their

e-mail address and changes therein from time to time with

the company/the Registrars and Share Transfer Agent of

the Company, C. B. Management Services Private Limited

at www.cbmsl.com/green.php and/or with the concerned

depository participant and also to mention their e-mail

address in all correspondence with the company so as to

expedite the response and also to enable the Company send

the notices of Annual General Meeting, Annual Reports and

other communications/documents electronically through

e-mail, if not advised otherwise.

(10) In terms of the SEBI Circular No.CIR/MRD/DP/10/2013

dated March 21, 2013, the Company is required to use any

RBI (Reserve Bank of India) approved electronic mode of

payment such as ECS [LECS (Local ECS)/RECS (Regional ECS)/

NECS (National ECS)], NEFT, etc. for making cash payments to

the investors.

Accordingly, to enable the Company comply with the above

circular, you are advised to send your correct Bank account

particulars (including MICR Number., IFSC Code, Account

Type, etc.) to your Depository Participant (if you are holding

shares in demat form) or to the Registrar and Share Transfer

Agent alongwith a cancelled cheque (if you are holding shares

in physical form).

In the absence of above particulars, the Company will use

physical payment instruments for making cash payments

and shall print your available bank account details on such

payment instruments.

The Shareholders, who are still holding shares in physical

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form are requested to take immediate action to demat their

shares to avail easy liquidity.

(11) Explanatory Statement and reasons for the proposed

resolutions under serial nos. 6, 7 and 8 above, pursuant to

Section 173(2) read with Section 192A(2) of the Companies

Act, 1956 are given hereinbelow.

(12) The Board of Directors of your Company at its meeting held on

May 29, 2013 has appointed Mr. Mohan Ram Goenka, Partner,

MR & Associates, Company Secretaries, as the Scrutinizer for

conducting the Postal Ballot process.

(13) This notice is being sent to all the members whose name

appear in the Register of Members/Record of Depositories as

on July 12, 2013.

(14) A member desiring to exercise vote by Postal Ballot may

complete the enclosed Postal Ballot Form and send it to the

Scrutinizer in the enclosed self-addressed Business Reply

Envelope so as to reach the Scrutinizer on or before the close of

working hours on August 24, 2013. Postage will be borne and

paid by the Company. However, envelopes containing Postal

Ballots, if sent by Courier or by Registered Post at the expense

of the registered member, will also be accepted.

(15) The result of the Postal Ballot shall be announced by the

Chairman, or in his absence by any other person so authorized

by the Chairman, at the Annual General Meeting on September

14, 2013 at 4.30 p.m. at the Company’s Rest House at

Rajgangpur – 770017, Odisha, India and the resolution will be

taken as passed effective from the date of announcement of

the result, if the result of the Postal Ballots indicate that the

requisite majority of the shareholders had assented to the

resolution. Members who wish to be present at the time of

declaration of result may do so at the said venue. The result of

the postal ballot shall be displayed on the notice board at the

Registered Office and shall also be announced at the website of

the Company www.oclindialtd.in.

(16) Members are requested to carefully read the instructions printed

on the backside of the Postal Ballot Form before exercising their

vote.

(17) All relevant documents/papers are open for inspection at

the Registered Office/Corporate Office of the Company on all

working days, except holidays, between 11.00 A.M. to 1.00

P.M. upto the date of Annual General Meeting.

(18) As per the requirement of Clause No. 49 of the listing agreement

on Corporate Governance, particulars of the Directors who are

eligible to be re-appointed/appointed are given below:

Sheo Raj Jain

Dr. S. R. Jain is a Mechanical Engineer from Pilani Institute. He is the

former Chairman of India’s largest steel producing company, i.e.,

Steel Authority of India. He was also Chairman of Coal India Limited

and Heavy Engineering Corporation Limited. He was Managing

Director of Bhillai Steel Plant. He has variety of experience in the

business arena with specialty in steel and heavy industry. He holds

directorship in the following companies:

DIRECTORSHIP IN OTHER COMPANIES

MEMBERSHIP IN COMMITTEES

1. CONSTEEL INDIA (P) LIMITED

2. NEELACHAL ISPAT NIGAM LIMITED MEMBER - AuDIT COMMITTEE

3. UNIVERSAL CABLES LIMITED CHAIRMAN - AuDIT COMMITTEE

He holds Nil shares in the Company.

Puneet Yadu Dalmia

He holds B. Tech degree from the Indian Institute of Technology, Delhi

and is a gold medalist from the Indian Institute of Management,

Bangalore in strategy and marketing. He has sixteen years of

experience in the industry having started his career as the co-

founder and Chairman of one of the most profitable e-recruitment

websites in India, JobsAhead.com, which was later acquired by

Monster.com, a Nashdaq listed multinational company.

DIRECTORSHIP IN OTHER COMPANIES

MEMBERSHIP IN COMMITTEES

1. Ankita Pratisthan Limited

2. Dalmia Cement (Bharat) Limited

3. Dalmia Cement Ventures Limited Member – Audit Committee

4. Dalmia Bharat Limited

5. Dalmia Bharat Sugar and Industries Ltd.

Member - Shareholders’/Investors’ Grievance Committee

6. TVS Capital Funds Limited

7. Rama Investment Co. Pvt. Ltd.

8. ZipAhead.Com Limited

He holds Nil shares in the Company.

EXPLANATORY STATEMENT

(Pursuant to Section 173(2) of the Companies Act, 1956)

Item No. 6

At the annual general meeting held on 6th June 1969, the

shareholders had passed a special resolution for payment of 1%

commission to Non Whole Time Directors from the accounting year

5


ended December 31, 1969 and had authorized the Board to divide

the commission at its discretion. As per the provisions of Section

309(7) of the Companies Act, 1956, the above resolution is being

renewed from time to time for a period of five years at one time.

Keeping in view the services rendered by the Non Whole Time

Directors, it is proposed to renew the resolution for another five

years by passing a Special Resolution.

All the Non Whole Time Directors are concerned or interested in

this resolution.

Item No. 7

In view of various opportunities available in solar power generation

and other avenues of power generation, it was in the interest

of the Company to enlarge the scope of the Objects Clause of

the Memorandum of Association. The Board of Directors had,

accordingly, at its meeting held on February 02, 2013 resolved to

amend the Objects Clause of the Memorandum of Association by

substituting the existing sub-clause (2 I) with a new sub-clause (2

I). The amendment in the Objects Clause of the Memorandum of

Association requires a Special Resolution of the shareholders in

terms of Section 17(1) of the Companies Act, 1956.

Further, in terms of Section 192A of the Companies Act, 1956,

amendment in the Objects Clause of the Memorandum of

Association requires the Resolution to be passed through postal

ballot. The Special Resolution under Section 17(1) of the Companies

Act, 1956 is accordingly recommended to be passed by the members

through Postal Ballot.

None of the Directors is interested in the proposed Special

Resolution.

Item No. 8

A Special Resolution is required to be passed in terms of Section

149 (2A) of the Companies Act, 1956 before commencement of

any new business proposed in Sub-Clause (2 I) of Clause III of the

Memorandum of Association. The Special Resolution under Section

149(2A) of the Companies Act, 1956 is accordingly recommended to

be passed by the members through Postal Ballot.

None of the Directors is interested in the proposed Special

Resolution.

By Order of the Board of Directors

for OCL INDIA LIMITED

Place: New Delhi (Rachna Goria)

Dated: May 29, 2013 Company Secretary

Registered Office:

OCL India Limited

AT/P.O. Rajgangpur 770 017

District Sundergarh

Odisha, India

Corporate Office:

OCL India Limited

17th Floor, Narain Manzil

23, Barakhamba Road

New Delhi – 110 001

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DIRECTORS’ REPORTFor The Year Ended March 31, 2013

The Directors of your Company are pleased to present their Sixty Third Annual Report together with the audited accounts of the Company for the year ended March 31, 2013.

1. WORKING RESULTS(` Lakhs)

2012-13 2011-12

Net Sales 1,80,883.30 1,45,856.25Operating Profit 44,191.51 24,049.28Less: Interest 7,704.09 7,493.50

Depreciation 13,843.39 12,758.07Profit before Taxation 22,644.03 3,797.71Provision for Taxation

Current tax 5,900.00 500.00Tax for previous Year 200.00 611.35Deferred tax 905.44 -

MAT Credit available for set off - 494.65 Profit after taxation 15,638.59 3,181.01Add: Brought forward from previous year 19,570.91 19,186.17

35,209.50 22,367.18Transfer to General Reserve 12,000.00 1,200.00Transfer to Debenture Redemption Reserve

123.67 273.65

Proposed Dividend 853.50 1,138.01Tax on Dividend 145.05 184.61Interim Dividend 1,422.50 Tax on Interim Dividend 230.77 Surplus carried to Balance Sheet 20,434.01 19,570.91

35,209.50 22,367.18

2. DIVIDEND

The Directors recommend payment of final dividend for the Financial Year ended March 31, 2013 of `1.50 per paid up equity share of `2/- each in addition to the interim dividend of `2.50 per paid up equity share of `2/-each, declared and distributed by the Company in the month of February 2013. The total dividend for the year ended March 31, 2013 would accordingly be `4/- per paid up equity share of `2/-each.

3. APPROPRIATIONS

It is proposed to transfer `120 Crore to the General Reserve while `204.34 Crore are proposed to be retained in the Profit and Loss Account and carried to the Balance Sheet.

4. OPERATIONS

The operational results of the current year vis a vis the previous year have registered an increase of 24% in net sales and 84% and 122% in the operating profits and profit before depreciation and tax, respectively.

For a detailed analysis of the performance of the Company for 2012-13 reference is invited to the chapter on Management Discussion and Analysis of this report.

5. EXPANSION AND FUTURE PLANS

Your Company has been progressing well with the project of setting up a 1.35 MnTPA cement manufacturing unit in West Bengal. Civil construction work has been progressing well and erection work is planned to be started shortly. The target for commissioning is set for March, 2014.

Your Company is also setting up a 2.5 MW Solar Power Plant for use of green energy and to trade in power market to harness Solar certificate. The plant is expected to be commissioned by December, 2013.

Your Company is also in the process of setting up 4.2 MW Waste Heat Recovery Power Plant at Rajgangpur, attached to Line-II clinkerisation plant, to generate power from waste heat of the cement unit. Order is likely to be placed by June, 2013. This cogeneration plant will meet cogeneration obligation of our 2x27 MW Captive Power Plant. All the formalities in this regard are being completed.

Your Company is identifying the opportunities for manufacturing special refractories with the use of Japanese Technology for supplying the same to the Indian Steel Industry. Your company has also started working in the area of raw material security by exploring various possibilities, e.g., mining and manufacturing of synthetic raw materials.

6. PROGRESS UPON CAPTIVE COAL BLOCK

Radhikapur (West) Coal Mining Private Limited, the joint venture company incorporated for development of coal block at Radhikapur, District Angul, Odisha along with Rungta Mines Limited and Ocean Ispat Private Limited, the Joint Venture partners, is in the process of obtaining statutory clearances like Environmental and Forest Clearance. The process of issuance of TOR and Forest Right Acts formalities have already been completed. The land acquisition process is yet to start by Odisha Industrial Infrastructure Development Corporation for which Company has already deposited the necessary advance money. The process of statutory clearance is slow due to the reasons beyond control.

7. DIRECTORS

Dr. S.R. Jain and Shri Puneet Yadu Dalmia, Directors of the Company, shall retire by rotation at the forthcoming Annual General Meeting in accordance with the provisions of the Companies Act, 1956 and Company’s Articles of Association and being eligible, offer themselves for re-appointment.

8. LISTING OF THE COMPANY’S SHARES

The Company’s equity shares continue to be listed on the

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Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.

9. DIRECTORS RESPONSIBILITY STATEMENT

In terms of provisions of Section 217 (2AA) of the Companies Act, 1956, your Directors confirm that:

a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures, wherever applicable;

b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company as on March 31, 2013 and of the Profit of the Company for the year ended on that date;

c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

d) The Directors have prepared the annual accounts of the Company on a going concern basis.

10. SUBSIDIARIES

OCL Global Limited, a Company incorporated in Mauritius and engaged in international trading of refractory products has become Wholly Owned Subsidiary of the Company with effect from January 01, 2013.

Also, OCL China Limited, a Company incorporated in China and engaged in manufacturing, processing and selling different kinds of refractory products, with 90% of its share capital being held by OCL Global Limited, has become a step down subsidiary of the Company with effect from January 01, 2013.

The Annual Reports of OCL Global Limited and OCL China Limited (“Subsidiary Companies”) for the Financial Year ended March 31, 2013 are not being attached with this Annual Report of the Company in terms of Ministry of Corporate Affairs’ General circular number 2/2011 dated February 08, 2011 read with Section 212 of the Companies Act, 1956. The annual accounts and the related information of the Subsidiary Companies shall however be available to the shareholders of the Company and shareholders of Subsidiary Companies, seeking such information at any point of time. The annual accounts of the Subsidiary Companies shall also be open for inspection by any shareholder(s) at the Registered Office of the Company and of the Subsidiary Companies concerned.

11. CONSOLIDATED FINANCIAL STATEMENTS

In compliance with the Accounting Standard 21 on Consolidated Financial Statements, this Annual Report also includes Consolidated Financial Statements for the Financial Year 2012-13.

12. MANAGEMENT RELATIONS WITH EMPLOYEES AND LABOUR

Relations of the Management with Employees and Labour remained cordial during the year under review and the industrial peace and harmony was maintained in the organization.

13. FIXED DEPOSITS

As on March 31, 2013 there were 22 fixed deposits aggregating `15.32 Lacs which remained unclaimed beyond due dates, out of which deposits aggregating `5.89 Lacs have since been renewed/repaid.

14. PARTICULARS OF EMPLOYEES

The particulars of the employees as required under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are set out in Annexure-I to the Directors Report.

However, having regard to the provisions of Section 219(1) (b) (iv) of the said Act, the Annual Report excluding the aforesaid information is being sent to all the members of the Company and others entitled thereto. Any member interested in obtaining such particulars may write to the Company at its registered office.

15. RESUME OF HEALTH, ENVIRONMENT AND SAFETY PERFORMANCE

Your Company is conscious of the importance of environmentally clean and safe operations to ensure safety of all concerned, compliance with statutory and industrial requirements for environment protection and conservation of natural resources to the extent possible.

Your Company has, during the current year, planted about 14000 additional trees making a total plantation of 473,771 trees so far at plant, colony and mines at Rajgangpur and Lanjiberna, respectively.

To create environment awareness among school children who are citizen of tomorrow, your Company has initiated “Environment Awareness Campaign” at various schools in and around Rajgangpur. The “World Environment Day” was celebrated on the June 5, 2012. On the December 11, 2012 - the Founder’s day, a cycle rally by students of Dalmia Private Industrial Training Institute (DITI) and few employees carrying placards on environment went through Rajgangpur town. The “National Safety Day” was celebrated on the March 4, 2013 to refresh Safety awareness among the employees in the plant.

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Your Company has received CER credit from UNFCCC for 93,700 Tonnes of CO2 till March, 2007 under CDM (Clean Development Mechanism) Project “Substitution of clinker by slag for manufacture of Portland slag cement (PSC)”

Refractory Division of your Company had unique achievement with calendar year 2012 being ACCIDENT FREE YEAR. The Division has surpassed its previous record of 5,11,960 man days accident free and as on December 31, 2012 it has achieved 8,95,227 man days being accident free. As on March 31, 2013 it has crossed 11,00,000 mark. As an awareness to the Rajgangpur colony residents and employees, the Division took out a rally during early hours on January 01, 2013 through colony, Cement Works and Refractory Works. All the workers of Refractory Division were felicitated on the occasion by the Whole Time Director.

16. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO, ETC.

Information required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors), Rules, 1988 with regard to conservation of energy, technology absorption and foreign exchange earnings and outgo are given in Annexure-II, which forms part of this report.

17. CORPORATE GOVERNANCE

As per Clause No. 49 of the Listing Agreement, report on Corporate Governance is given in Annexure-III, which forms part of this Report.

18. UNCLAIMED SUSPENSE ACCOUNT

In terms of clause 5A of the Listing Agreement, the Company is in the process of opening the demat account in the name and style of “OCL India Limited - unclaimed Suspense Account” and transferring the shareholders’ unclaimed shares to the said account.

19. CORPORATE SOCIAL RESPONSIBILITY

As a responsible corporate citizen, your Company has been undertaking various developmental activities in peripheral areas of its plant and captive mines to improve the socio-economic condition of people on a sustainable basis. The developmental activities are mainly focused on the areas like health, education, drinking water, infrastructure development, livelihood training, games and sports, plantation etc.

Your Company provides free health care services to people at its dispensary in Lanjiberna. It has also been operating a mobile medical unit to provide health care services to senior citizens in about 40 villages of its periphery at their door step. Your Company has constructed first floor of a Girl’s Hostel in St. Marry Girls High School for accommodating tribal girls who are pursuing higher studies in Rajgangpur during 2012-13. Your Company is operating 45 one teacher schools (Ekal Vidyalay) in villages to provide preschool education to

students. Your Company has provided desks, constructed toilet blocks in schools during 2012-13. It has been providing livelihood training like tailoring, driving-cum-mechanic, etc. to unemployed youths to make them employable.

20. AUDITORS AND AUDITORS REPORT

M/s V. Sankar Aiyar & Co., Chartered Accountants, Statutory Auditors of the Company, holds office until the conclusion of the forthcoming Annual General Meeting and is eligible for re-appointment.

The Company has received certificate from M/s V. Sankar Aiyar & Co., Chartered Accountants, New Delhi, to the effect that their re-appointment, if made, would be within the prescribed limits under Section 224(1B) of the Companies Act, 1956 and that they are not disqualified for such re-appointment within the meaning of Section 226 of the said Act.

The notes to accounts referred to in Auditors’ Report are self explanatory and, therefore, do not call for any further comments.

21. COST AUDIT

The Company has received certificate from M/s R. J. Goal & Co., Cost Accountants, having office at 31, Community Center, Ashok Vihar, Phase – I, New Delhi – 110 052 and having firm registration no. 00026, to the effect that their re-appointment, if made, would be within the prescribed limits under Section 224(1B) read with Section 233B(2) of the Companies Act, 1956 and that they are not subject to disqualifications specified in Section 226 of the said Act. The Cost Auditors have further certified that they are independent firm of Cost Accountants and are at arms length relationship with the Company.

The due date for filing of Cost Audit Report by the Cost Auditor in XBRL format was January 31, 2013 and the same was filed on January 19, 2013

22. ACKNOWLEDGEMENTS

Your Directors wish to place on record their appreciation of the support provided by your Company’s Bankers and Financial Institutions.

Your Directors acknowledge the dedication and commitments of the employees at all levels and also take this opportunity to thank all the valued customers who have appreciated the Company’s products and have patronized them.

Your Directors convey their grateful thanks to the Government Authorities (Central & States), shareholders, distributors and dealers for their continued assistance, co-operation and patronage.

For & on Behalf of the Board

Place: New Delhi Gaurav Dalmia D. N. DavarDate: May 29, 2013 Managing Director Director

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MANAGEMENT DISCUSSION AND ANALYSISGlobal Economy

The global economy remained under pressure with a moderate growth of 3.2% in 2012. The growth remained uneven with emerging and developing economies growing at a rate of 5.1%, the U.S at 2.2%, Japan at 2%, advanced economies at 1.2% and a worrying negative growth in Euro Area at -0.6%. Silver lining in some economies and struggle to overcome slowdown in others at the same time translates into uncertain global economic environment. Results are evident from contraction in world trade volume growth from 6% in 2011 to 2.5% in 2012.

Major challenges during 2012, across global economies, were sovereign debt crisis and feeble banking system in Euro Area; high unemployment and low private demand in the u.S.; high inflation and slow capital inflow in developing economies. Policy makers, globally, responded with various measures in 2012 to restore growth and sentiments. Some of the key measures included fiscal consolidation and strengthening of banking systems in Euro Area; strong fiscal adjustments in the u.S.; fiscal stimulus and controlling deflation in Japan; and improving capital inflow prospects in emerging and developing economies.

Looking forward, global economy is estimated to witness a slow yet steady recovery. As per IMF estimates, advanced economies will grow at 1.2% in 2013 and 2.2% in 2014; emerging & developing economies at 5.3% in 2013 and 5.7% in 2014. Overall global economic growth is estimated at 3.3% in 2013 and 4% in 2014, bringing positivity and hope for better future growth.

Indian Economy

The uncertain global economic environment along with near stagnant capital inflow, slow demand, high inflation and liquidity

issues led to a dip in India’s GDP growth from 6.5% in Financial Year 2011-12 (FY 12) to 5% in FY13 as estimated by CSO. This was one of the lowest growth rates that the country has witnessed in the last 10 years.

The Government introduced a host of policy reforms to infuse capital inflow and to reduce fiscal deficit. During the year, the Foreign Direct Investment (FDI) norms were relaxed in multiple sectors and divestment plan were announced to raise nearly `24,000 Crores of revenues. These measures helped Indian Government to bring down its fiscal deficit in FY 13 to 5.2% of the GDP compared to 5.7% in FY12.

The Reserve Bank of India (RBI) on the other hand had dual task of managing inflation and enhancing liquidity. During the year under review, RBI on three occasions announced the reduction in Cash Reserve Ratio (CRR) from 4.75% to 4% which infused around `42,500 Crores of liquidity in the banking system.

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Business Performance Overview

FY13 was yet another year of profitable growth in OCL India’s

sustained journey of delivering stakeholder value. Following a

year of weak performance and tough business environment, FY13

was marked with all round growth across Company’s operations.

Financially, the Company recorded both high revenues and

impressive profitability. Operationally the year was marked with

heightened operational efficiency, power self-sufficiency and

stabilization of existing operations.

Operational Performance:

OCL India has been at the forefront of Eastern India’s cement sector.

The Company has a 4 MnTPA cement plant at Rajgangpur (Odisha),

1.35 MnTPA cement plant at Kapilas (Odisha) and a 1,06,400 Tonne

PA refractory plant at Rajgangpur (Odisha). During the year under

review, the Company’s operational performance was the best,

considering the challenges which the Company had faced.

Operational Highlights

• Power self-sufficiency: The Company’s consistent efforts of

becoming self-sufficient in power have paid rich dividends.

During FY13 the Company commissioned its 2nd 27 MW coal

based captive power plant (“CPP”) at Rajgangpur, Odisha. The

first 27 MW CPP was commissioned in FY12. Both the CPPs are

being stabilized and are capable of delivering regular power

supply, leading to considerable savings.

• Green energy: OCL is in the process of setting up 2.5 MW Solar

Power Plant for trading green energy in power market under

solar certificate. The plant is expected to be commissioned by

December 2013.

• SAP Implementation: During FY13, OCL India completed the exercise of implementing SAP across the organization. This will help the Company in more efficient and effective management of productivity, optimization of cost, scaling up capacity, prudent financial management and flexibility in operating in changing business environment.

• Securing Raw Material Supply: OCL India is working steadily towards securing raw material for its present and future operations. The Company through Radhikapur (West) Coal Mining Private Limited, the joint venture company incorporated for development of coal block at Radhikapur in Odisha along with Rungta Mines Limited and Ocean Ispat Private Limited, the joint venture partners, is in the process of obtaining statutory clearances.

• Optimized Fuel Sourcing and Fuel Mix: During FY13 OCL diversified its fuel mix and started using alternative fuel in place of coal. During the year under review, the Company used alternative fuels which constituted around 3% of total fuel input quantity. Also, the Company made its fuel sourcing strategy more effective giving it leverage to negotiate better.

• Consolidating overseas operations: During the year under review OCL India acquired additional 50% stake in OCL Global Limited which further holds 90% stake in OCL China Limited. OCL Global Limited has now become wholly owned subsidiary of the Company while OCL China Limited has become a step down subsidiary. OCL China Limited has specialty refractory business with installed capacity of 25000 Tonne per annum at its China plant.

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Financial Performance:

OCL India registered one of its best performances during the year under review. The Company posted a decent Net Sales growth of 24% from ̀ 1458 Crores in FY12 to ̀ 1809 Crores in FY13. The EBITDA grew by a strong 84% from `240 Crores to `441 Crores on account of better capacity utilization, operational cost control and better sales realization. The Net Profit recorded a robust growth of 388% from `32 Crores in FY 12 to `156 Crores in FY13.

This strong performance came at the back of a gloomy FY 2012 which witnessed a weak performing 4th quarter. The production, dispatch and sales were lowest during FY 12 owing to temporary suspension of Lanjiberna Limestone and Dolomite mines between January to March 2012. OCL India had put its best foot forward and years of experience to post a rebound in performance in FY13.

While posting a profitable growth, OCL India maintained its consistent track record of providing dividends to its shareholders. The Directors have recommended a final dividend of `1.50 per equity share of `2/- each in addition to interim dividend of `2.50 per equity share, making a total of `4/- (200%) per equity share. This is the 58th consecutive year of dividend declaration since 1955.

Financial Analysis

Balance sheet:

Capital Structure: The Company’s Authorized Share Capital comprised of 1,00,000 preference shares of `100/- and 7,00,00,000 ordinary shares of `2/- each as on March 31, 2013.

Reserves and Surplus: Total Reserves and Surplus stood at `1027 Crores at the end of FY13 against `892 Crores in FY12. The increase of 15% is on account of higher profits in FY13.

Loan Profile: As on March 31, 2013, OCL India had `540 Crores of debt which is 14% lower than previous year’s `637 Crores. While the Company’s debt has a significant decrease during the year due to repayment of debt, the Debt-to-Equity ratio has come down to 0.51 compared to 0.71 in FY 12.

Profit & Loss Account:

Total Income: Total Income of the Company grew by 22% from `1503 Crores in FY12 to `1842 Crores in FY13. The Total Income is comprised of two components namely Net Sales (also termed as Income from operations) and Other Income. The details of both components are given below:

Sales: Net Sales grew from `1458 Crores in FY12 to `1809 Crores in FY13, a 24% increase on year-on-year basis. The higher sales realization is attributable to heightened marketing and brand building exercise during FY13.

Other Income: Other Income decreased by about 24% from `33 Crores in FY12 to `25 Crores in FY13. Other Income comprises of Interests received on deposits, Tax Refunds and Foreign Exchange Gains, Dividend on long-term investments and mutual funds, profit

on sale of long-term investments and any other non-operating income.

Total Expenses: Total expense grew by a moderate 11%, from `1390 Crores in previous year to ̀ 1539 Crores in FY13. The Company was able to contain its costs to a larger extent. In FY13, the Company optimized it’s Fuel Cost by way of optimized fuel sourcing strategy. During FY13 Finance Cost was rationalized by swapping high interest bearing debt with lower interest bearing debt.

Net Profit: At the Net Profit level, OCL India performed very well. The Company recorded impressive 388 % growth in Net Profits from `32 Crores in FY12 to `156 Crores in FY13. The high profitability is achieved by cost optimization and improved sales realizations together with higher volume of sales in cement.

Business Segment Overview

Cement Business

Indian Cement Sector

Cement is the core of a country’s physical infrastructure, an individual’s basic need of shelter and development of corporate sector. India is world’s 2nd largest manufacturer of Cement after China having a highly fragmented industry structure.

Loan Agreement signing with International Finance Corporation (IFC)

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Cement Growth Drivers:

Cement forms an integral part in almost all sectors such as civil and private infrastructure development, industrial construction and real estate development.

The key growth drivers of cement are further elaborated as under:

• Infrastructure Development: The gap between Infrastructure demand and availability in India is still huge which is leading to renewed thrust on infrastructure development by the Government. The Government has allocated US$ 1 Trillion in the 12th Five Year Plan spread over 2012-17 which is almost double as compared to uS$ 514 Billion in the 11th Five year Plan. In addition to that, the Central and State Governments are increasingly engaging in Public-Private-Partnership (PPP) to support infrastructure development.

• Real Estate Development

Residential: Growing young working population, rising per capita income, increasing number of households, growing urbanization are all leading to an increase in housing demand. As per Ministry of Housing & urban Poverty Alleviation, urban housing shortage in India stood at 18.78 million units in 2012. The rural housing shortage was 43.67 million units at the beginning of 12th Five Year Plan (2012-17) as per Working Group report on rural housing.

Commercial and Retail: The advent of Commercial and Retail spaces had started with economic liberalization and growing urbanization. Today more and more multinationals are coming to India and Indian corporate are growing their business simultaneously. As per recent Cushman & Wakefield report, India will require around 240 MnSqFt of office space and 161 MnSqFt for retail space between 2010-2014 owing to the increasing propensity to spend, improving lifestyles and growing urbanization. The addition of these commercial and retail spaces will push the demand for cement.

• Headroom for Per Capita Cement Consumption growth:

Per capita cement consumption in India is one of the lowest among developed and developing economies. India has one of the lowest per capita consumption of cement at 185 kg compared to 1390 kg in China and world average of 480 kg. Hence, there is substantial headroom for growth of cement consumption which will lead to higher demand and production.

• Cement - Capacity addition and utilization

(MnT)

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The four year period from FY06 to FY09 witnessed highest ever capacity additions in Indian cement sector wherein FY11 alone witnessed 45 MnT of capacity addition. This huge capacity addition was in line with prevalent high GDP growth in the Country. With consistent decline in GDP growth the capacity addition has also now come down owing to low demand and high supply. Whereas 41 MnT were added In FY12, FY13 witnessed an even lower capacity addition of 25 MnT.

Eastern India Cement Sector

As per an independent industry research report, East India contributes to around 18% of India’s cement demand and 14% of the total installed capacity. East India’s cement demand has been growing at a CAGR of 12% compared to pan-India growth of 7% over FY09 - FY12. This has been led by low base and a change in political and investment scenario. OCL India being one of the oldest cement manufacturing companies in Eastern India has a strong presence in this region.

Growth drivers - East

(1) Housing shortage: Owing to rapid urbanization in east India, there is a housing shortage of around 4.59 million houses in the urban areas, equivalent to around 25% of the country’s urban housing shortage.

(2) Infrastructure outlay: Total infrastructure outlay for the eastern states has been increased by 2.9 times in the 12th Five Year Plan.

(3) Dedicated freight corridor: A 3300 KM long dedicated freight corridor is going to be built by Dedicated Freight Corridor Corporation of India Limited between Eastern and Western regions as part of two such corridors proposed in East - West and North - South India.

(4) Low per capita consumption: Low per capita cement consumption in East at 115 kg compared to all India consumption.

Supply - East

Eastern region is expected to see massive capacity additions over next three years, adding around 22.8 MnT of capacities in the region. This will be around 49% of existing capacity. This excess capacity addition will result in increase in competition.

Cement – Operational Performance:

FY13 was marked with new benchmarks of operational performance for cement business of OCL India. The year witnessed some of the highest ever recorded operational numbers and strategic milestones for a profitable future growth.

Cement - Operational Highlights:

• Capacity expansion: The Company is setting up a 1.35 MnTPA cement manufacturing unit in West Bengal. The civil construction work of the unit has been progressing well and the erection work will be started shortly. The new plant is targeted for commissioning by March, 2014. This new capacity is a new geography within OCL’s area of operation and market and will further strengthen the Company’s position in East India. The Company is focusing on building optimum logistical support.

• New benchmarks of our operational performance: During FY13 OCL witnessed the highest ever operational growth. This exceptional operational performance comes from the Company’s inherent strength of performing against all odds, considering the operational bottlenecks faced in previous year.

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Expanding reach: With heightened investments in marketing and branding activities, the Company further penetrated in its existing markets. The dealers and sub-dealers increased by around 8% across markets. The strong network of dealers and sub-dealers boosted the Company’s aggressive sales strategy.

Cement – Financial Performance:-

• Revenues: Cement segment revenues increased to `1503 Crores compared to `1146 Crores in FY12, registering a growth of 31%.

• EBITDA: OCL witnessed a staggering 97% growth in EBITDA from `213 Crores in FY12 to `419 Crores in FY13.

The increased profitability is attributable to better capacity utilization, increase in sales volumes, better sales realizations, self sufficiency in power and effective fuel sourcing strategy.

Cement – Risk management

Cement Business Environment: The cement business being directly associated with economic and infrastructure growth is vulnerable to slowdown and weak demand.

Regional Presence: The Company’s operations and markets are spread in eastern part of the Country. We have our plants in Odisha but our market is spread across Odisha, West Bengal, Bihar and Jharkhand. This regional presence may affect revenues and profitability of the Company in the event of economic, political or natural turbulence in the region. The eastern states of the Company’s presence have immense latent growth potential in view of prevalent growth and consumption patterns. The Company, within the eastern region, has spread its market presence to West Bengal, Bihar and Jharkhand beyond the core market of Odisha. The Company is in the process of setting up of 1.35 MnTPA cement plant in West Bengal which is outside its traditional stronghold of Odisha yet in the growing market of eastern India.

Raw Material - Availability and Cost: The uninterrupted availability of raw materials like limestone, gypsum, coal etc. at cost effective price is very essential for sustained profitable operations of the Company. Any deferment and/or restrictions in the availability of these materials may lead to decline in production resulting into lower revenues and profitability.

The Company has captive mines at Lanjiberna for Limestone and Dolomite which ensures consistent availability of raw material. The Company along with its Joint Venture Partners is further working on development of Radhikapur Captive coal mines in Odisha to ensure uninterrupted raw material supply.

Power - Availability and Cost: Cement manufacturing is highly power intensive business and manufacturing plant(s) require uninterrupted power supply throughout. The increase in power cost by power distribution companies is likely to increase the power cost per tonne of cement produced, which will impact profitability. Secondly, any interruption in power supply would affect plant productivity.

The Company has taken various steps to mitigate this risk. During FY13 and FY12, the Company has commissioned two Coal-based Captive Power Plants of 27MW each.

Competition Risk: Cement is a highly commoditized product which can be marketed in a radius of only two hundred km from its production facility. Being capital intensive and of commodity nature, competition in Cement business often leads to drop in market share

The Company has taken a host of measures to safeguard against this risk. OCL frequently invests in marketing and branding function to establish brand premium and brand recall among its customer universe. The Company also maintains a healthy Sales Channel to ensure preference for its products. At present, OCL’s ‘Konark’ brand is a strong brand in Odisha and is fast catching up with the leading brands in West Bengal, Bihar and Jharkhand.

Further, the Company invests substantially in its Research and Development to improve the quality of its products and launch new products. OCL has been the first Company to grind slag from steel plants with clinker to make extra strong cement. It has been manufacturing specialty cements like Sulphate Resistant Cement (SRC), slag blend cement (PSC), fly ash blend cement (PPC) besides normally used ordinary portland cement (OPC).

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Foreign Exchange Fluctuation Risk: Cement manufacturing requires imported coal, in addition to indigenous coal, and certain machinery and equipments to be imported for expansions, etc. There may be risk associated with Indian Rupee depreciating against uS Dollar and other currencies. To mitigate the risk of foreign exchange fluctuations we hedge the foreign exchange transactions involving foreign exchange outgo

Cement – Outlook

Outlook for cement is going to be positive given the sector’s growth drivers. The infrastructure thrust of US Dollar 1 Trillion, targeted economic growth of around 9% over 12th Five Year plan and estimated housing shortage of 75.5 million units by 2014. All these indicate growth in cement demand to bridge the gap between available and required infrastructure. The surge in demand of Retail and Commercial spaces will further add to cement’s growth momentum, going forward.

OCL India is one of the leading cement players in East India cement market. Cement demand growth in East has been robust at CAGR of 12% over FY 09 – FY 12 compared to all India growth of 7%. Going forward, demand growth in East India is estimated to be 7 to 8% in FY14 and FY15. This is also congenial with infrastructure growth, urban housing demand and lowest per capita cement consumption of 115 Kg against country’s average of 185 Kg and highest of West region at 293 Kg.

Refractory Business Overview

Refractory Sector in India

The installed capacity of Indian Refractory sector is estimated at around 2 MnT per annum, of which the utilization is estimated to be around 60% of total capacity i.e. around 1.15 -1.2 MnT per annum. The sector today faces strong competition from global players that have acquired controlling stake in Indian refractory players. Among top 5 refractory companies in India, around four are owned or controlled by overseas entities. Overall industry landscape is changing fast. The global players are bringing newer technologies, cost efficiency measures and strong global customer base. These changes are making the industry landscape competitive; on the other hand these will lead to consolidation of the industry. Overall there is slowdown in steel industry and new projects and expansions are also near stagnant. In view of this slowdown, more number of orders in the sector are flowing for repairs and rebuilding of coke ovens and blast furnace which creates more opportunity for domestic manufacturers.

Raw materials for refractory business include bauxite, magnesia, graphite and alumina of specific properties and quality. The key raw material for refractory largely depends on import. China happens to have largest global reserves of these raw materials and cost effective as well, compared to the reserves elsewhere in the world. China has a restrictive export policy for refractory raw materials on both - heavy taxes (10%) and License Fee (10-15%) aspects. This scenario is translating into export of finished refractory products

from China by overseas players present there or by Chinese entities, as a rather profitable proposition. There is pressure in the industry on production front due to shortage of raw material.

Refractory Growth Drivers:

Economic Growth and Infrastructure Development: India is estimated to post a GDP growth of 5% for FY13 as per CSO. Though it is the lowest growth rate in last 10 years, the outlook of Indian economy as per IMF is projected to increase the growth rate from FY14 onwards. Considering 121 Crore strong population and low per capita consumption of steel at 56.9 kg and cement at 185 kg, the growth of Steel and Cement industries will translate into increase in demand for refractory products.

Steel Industries’ Growth- Domestic and Global: Steel industry absorbs nearly 70% of refractory products. According to World Steel Association’s (WSA) short-term outlook, global steel use is expected to grow by 2.9% to reach 1,454 MnT in 2013 compared to 1.2% growth in 2012. The same is expected to reach 1,500 MnT in 2014, a 3.2% increase.

As per WSA outlook, India’s steel demand for 2013 will grow by 5.9% compared to 2.5% in 2012 owing to favorable monetary and fiscal environment. The recent reforms by Government of India will further improve the demand for steel to 7% by 2014.

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These developments in global and Indian steel industry are set to increase the demand for refractory products in domestic as well as overseas markets.

Potential in Non-Ferrous and Non-Metal Industries: There is growth potential for consumption of refractory products in non-ferrous industries. Beyond steel, the industries like Glass, Petrochemicals and Cement require refractory products at different stages of manufacturing process. The growth in their respective consuming industries like Automobile & Construction, Housing, and Petroleum Industry will boost demand for refractory products.

Refractory – Operational Performance:

OCL India operates through a well-equipped refractory plant in Odisha. It offers a wide range of products for Ferrous & the Non-Ferrous Industries. It provides refractory products to customers across steel, cement, alumina, glass, copper, chemicals and hydrocarbon industries. The Company enjoys a significant market share in refractory markets in India and overseas. It exports around 15% of its products to countries such as Canada, uSA uK, Italy, Japan, China, Malaysia, Australia, South Africa, and Saudi Arabia. OCL is amongst the world’s few companies to produce silica bricks for coke oven.

Capacity and Utilization: During the year under review, the slump in steel and glass industry sectors affected the demand and resultant production of OCL’s refractory products. During the year under review, the capacity utilization of the plant was 56% which resulted in a total production of 60,079 Tonnes.

Operational Highlights:

• Acquisition of additional 50% stake in OCL Global Ltd: The Company during the year acquired balance 50% equity in OCL Global Limited which in turn holds 90% stake in OCL China Limited. OCL China Limited is situated at Dashiqiao in Lioning Province of China. OCL China Limited manufactures, processes and sells different kinds of refractory products including MgC bricks and BB bricks. OCL China has production capacity of 15000 Tonne per annum of Magnesia based MgC bricks and 10000 Tonne per annum of Burnt Brick (BB) bricks. With direct control of OCL China, the Company is set to achieve higher synergies in view of its global operation. OCL China has raw material advantage in view of restrictive raw material export policy in China.

• Securing critical raw material: The Company is taking steady and firm steps towards raw material security by exploring various possibilities like mining and manufacturing of synthetic raw materials. This would ensure continuous and cost effective supply of critical raw materials which are mostly imported.

• Fresh opportunities in new Technologies and Products: The Company is identifying the opportunities for manufacturing special refractories with the help of Japanese Technology in collaboration with its technology partner for supplying the same to the Indian Steel Industry.

• Continued focus on our Export Markets: Export environment was overall dull during FY13 especially in OCL India’s traditional strong markets of Spain and Italy. Exports from Chinese manufacturers to customers across countries had created price pressure. Amidst these challenges, OCL India was able to retain its hold in the Middle East markets and had added new businesses in Africa & Saudi Arabia. This helped OCL India in maintaining export performance almost similar to previous year.

Refractory – Financial Performance

• Net Sales: Owing global economic slowdown the Net Sales of Refractory Segment witnessed slight decline of 2% from `313 Crores in FY12 to `305 Crores in FY13. Realizations have shown improvement of about 18% reaching `42,622 per tonne in FY13 compared to `36,180 per tonne in FY12.

• Exports: OCL India retained its exports market.

• EBITDA: There was a decline of 15% in EBITDA to `23 Crores in FY13 compared to `27 Crores in FY12. The decline is primarily on account of decline in Sales.

Refractory – Risk management

Slowdown in Economic Growth: Slowdown in economic growth will impact the growth of core industries like steel. The weak growth of steel industry translates into lesser demand of refractories.

To mitigate this risk, the Company has been steadily diversifying its product offerings for different industry segments like cement, glass and copper etc. and exploring new export markets.

Competition Risk: Competition from national/regional players and overseas companies with proven technology and equipments for steel industries refractory would pose the risk of market share reduction.

The Company will be mitigating this concern by spreading its presence in non-steel areas like cement, copper and petrochemicals.

Raw Material Supply: There is pressure on raw material supply in India. A large part of refractory raw material is imported. China is having dominant share of global reserves of these materials namely - refractory grade bauxite, fused magnesia, graphite and brown fused alumina. The Chinese policy regarding export and cost of these raw materials is making the import of these raw materials unfavorable for global refractory manufacturers. Lack of quality and continuous raw material supply may affect the production and margins.

The Company is working towards securing some of the key raw materials on long term basis to safeguard against drop in raw material supply.

Foreign Exchange Risk: Hardening of RMB and devaluation of Japanese Yen may affect the profitability for orders taken in Yen.

This risk is mitigated by converting orders with uS$.

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Refractory – Outlook

We believe that Outlook of refractories will be positive and optimistic in long-term owning to multiple reasons. The per capita steel consumption in India is very low at 56.9 Kg in 2012 compared to world average of 216.9 Kg and China’s 477.4 Kg. Hence there is enough potential. The recent thrust on infrastructure development by Government of India with 12th Five year plan outlaying USD 1 Trillion on infrastructure development is expected to fuel the growth of steel demand leading to growth in refractories.

The Company’s consistent efforts to diversify its product portfolio and reaching out to non-steel industries like Glass, Copper and Petrochemicals, is going to de-risk its business and shall pay rich dividends.

Further, post-acquisition of its China refractory business, OCL India is poised for synergistic and profitable global operations.

Research & Development (R&D)

Since inception, OCL India has always had thorough focus on Research and Development activities. From target oriented to application specific, OCL India has been continuously investing in product and process excellence. OCL today has an in-house R&D Centre with state-of-the-art facilities, technologies and equipments. Besides the R&D Centre, OCL has set up an independent R&D

institution – “Dalmia Institute of Scientific & Industrial Research”. During FY13 OCL continued its quest for R&D excellence through host of measures:

Cement R&D: Quality of Phospho Gypsum was investigated and upgraded. Industrial waste from own plants such as bed ash, fly ash, cinder and reject stone from mines were put to effective use as raw material. The Company is in process of utilizing waste heat generated for power generation. Alternate Fuels were put to use for the first time to diversify fuel mix. With these efforts OCL achieved multiple objectives of cost optimization and environmental impact reduction. The Company was able to reduce cost of raw material, reduce outflow of industrial waste in environment and enhanced natural resource conservation like minerals and water.

Going forward the Company is in process of installing Waste Heat Recovery based power plants and Solar Power plants. Further the Company is working towards reducing use of auxiliary power in CPP

Refractory R&D: During FY13 major R&D breakthroughs in Refractory included development of Snorkel refractories, Magnesia-hercyanite and Magnesia-Galaxite bricks for cement rotary kiln, Alumina Zircon for glass industries, Almag Spinel for Ladles used in long casting, Prefied precast blocks for cement kiln burner tip, spiral SEN and mono-block stopper for higher life (17 Hrs.). These product developments are opening up newer avenues of business development in Steel, Glass, Copper and Cement Industries etc. to name a few.

Going forward, the Company is working on development of low-cost dolomite bricks for AOD/ladle, coating friendly Mag Al spinel bricks for Cement, Chrome Bricks for gassifiers, and coating repellent erosion resistant Alumina SiC bricks for tertiary air duct of cement kiln. Also in pipline are Zirconia inserts for various application in flow control refractories and cement purging plug to name a few.

Human Resource Development & Industrial Relations:

OCL India continued to invest in its human capital to keep them motivated, passionate and committed for the Company’s growth. The Company furthered its efforts in providing better living standards supplemented by all modern amenities to its employees at plants and adjacent residential colonies. OCL invests in quality hiring, grooming, nurturing and growth of its employees to best of Company’s resources and capabilities. OCL India believes in giving priority to employees and management team members within the Company in event of growth opportunities. The Company continuously keeps its employees engaged across diverse platforms such as newsletters, employee voice, employee excursions, business meets etc. During FY13 the overall industrial relations remained cordial.

Awards and Recognitions: On course its journey of excellence, OCL India has been receiving awards and honors endorsing its quality, management processes and Environment Health and Safety, consistently. During FY13 following awards and recognitions were

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conferred upon OCL India:

• 50th Annual Mines Safety Week 2012: OCL won 7 prizes at the 50th Annual Mines Safety Week 2012 which is organized under the aegis of Director General of Mines Safety, Chaibasa Region.

OCL won 1st Prize in Overall Performance, Publicity & Propaganda, Plant & Equipment Maintenance and two 1st prizes under Mechanic and Operator (Dozer) categories of Trade Test. Three 2nd prizes were conferred, two under Trade Test categories of Operator (Dumper) and Operator (Drill), and one in First Aid Competition.

• Mine Reclamation and Rehabilitation: Lanjiberna Lime stone and Dolomite mines received 2nd prize for reclamation and rehabilitation amongst lime stone and dolomite mines in Bhubaneswar region of Indian Bureau of Mines, in the Annual Mines Environment week celebration 2013.

• CER Credits: OCL Cement received CER credit from UNFCCC for 93,700 Tonnes of CO2 up to March, 2007 under CDM (Clean Development Mechanism) Project “Substitution of clinker by slag for manufacture of Portland slag cement (PSC)”

• Quality Circles “VISWAKARMA” from Pattern Shop and “BASuNDHARA” from Concast Plant from our Refractory division has participated in 20th CCQC - 2012 at Rourkela from September 14 - 15, 2012 and both the teams have bagged GOLD Award in this Convention.

• Quality Circles “VISWAKARMA” from Pattern Shop & “BASuNDHARA” from Concast Plant from our Refractory division has participated in 26th NCQC- 2012 at Kanpur Chapter from December 17 – 20, 2012 and both the teams have bagged PAR EXCELLENCE Award in this Convention.

Internal Controls

Your Company has appropriate internal control systems for business processes, with regard to efficiency of operations, financial reporting, compliance with applicable laws and regulations, etc. Clearly defined roles and responsibilities down the line for all managerial positions have been institutional. All operating parameters are monitored and controlled. The Internal Auditor of the Company conducts regular internal audit and ensures that responsibilities are executed effectively. The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of internal control systems and points to improvement for strengthening them, from time to time.

Cautionary Statement

Certain statements in this management discussion and analysis describing the Company’s objectives, projections, estimates and expectations may be ‘forward looking statements’ within the meaning of applicable laws and regulations.

Although the Company believes that its expectations are based on reasonable assumptions, these forward-looking statements may be influenced by numerous risks and uncertainties that could cause actual outcome and results to be materially different from those expressed or implied. Some of these risks and uncertainties have been discussed in the Section on ‘Risks and Concerns’. Your Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in the future.

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ANNEXURE-IITo the Directors’ Report

STATEMENT CONTAINING PARTICULARS PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.

A. CONSERVATION OF ENERGY

CEMENT:

a) EnergyConservationmeasuresimplemented

1 ReductioninidlerunningofequipmentsatminesthroughDCS.

2 Installationofenergyefficientpumpsatmines.

3 Removal of damper from new crusher bag filter fan atmines.

4 Reductioninbagfilterdifferentialpressureinoldcrusherbagfilteratmines.

5 Compressedairoptimization.

6 FlyashconveyingfromCPPtomulti-compartmentsilos.

7 IntermixingofFlyashwithOPCtoproducePPC.

8 Removalofdamperfrompre-heaterfanofLine-2.

9 RemovalofsilencersfromcoolerfansatLine-2.

10 Transformervoltageoptimization.

11 TemperatureoptimizationofloadcentreairconditioningSystem.

12 Continuedmonitoringandarrestingofleakagesinducts.

13 InstallationofmodifiedinletsealatLine-1Kiln.

14 Reduction in specific power consumption throughproductivityimprovementinpyroprocessingandcementgrinding.

15 InstallationofenergyefficientFluorescentLamps.

16 Replacementof few identifiedagedmotorswithenergyefficientmotors.

17 ConvertingterminalConnectionoftheMotorfromDeltatoPermanentStar.

18 InstallationofVFDforrotopacker4bagfilterfan.

19 Replacementofoldcompressorswithscrewcompressors.

20 Modifiedimpeller/sealchangeofwaterpumpsatCVRM.

b) Additional investments and proposals, if any, beingimplementedforreductionofconsumptionofenergy:

1 OPCgrindingwithoutheat.

2 ReductioninauxiliarypowerconsumptionofCPP.

3 Usage of alternate fuel to partly replace coal as analternatefuelforkilnandCPP.

4 OptimizationofBallmillsforcementgrinding.

5 OptimizationofCVRM’sforpowerandoutputthroughinhouseeffortsandOEM.

6 Study of kiln operations through NCCBM andimplementationofcorrectiveactions.

7 EnergyauditthroughCIIandimplementationofcorrectiveactions.

8 OptimizationofLine2processfans.

9 Reduction of pressure drop across damper in identifiedBagFilterfansinpackingplantarea.

10 Continued utilization of waste hot gases from kiln andcoolerfordryingofslag.

11 Continued daily monitoring of section-wise energyconsumption.

12 Continuedmonitoringoffalseairincircuitandarrestingit.

13 OptimizationofoperationofcompressorsatLine-2.

14 Reduction of pre-heater tower temperature by processoptimization.

15 GrindingofOPC53SinCVRMinsteadofballmill.

16 Installationof4.8MWwasteheatpowerplant.

17 Installationof2.5MWsolarpowerplant.

c) Impactofthemeasuresat(a)and(b)aboveforreductionofenergy consumptionand consequent impacton the costofproductionofgoods:

1 Reduction in consumptionof thermal energyper tonofcementproduced.

2 EfficientUtilizationofwasteheatfordryingthemoistureof slag has resulted in reduction in the consumption ofcoal.

3 Creating extensive awareness on need of energyconservation.

20

OCL INDIA LTD. ANNUAL REPORT 2012-13

4 Reduction in Green House gases there by helping tocontrolGlobalwarming.

5 AsteptowardsPATimplementationaslaiddownBEE.

6 Conservationofnaturalresources.

d) Total energy consumption and consumption per unit ofproductionasper‘FormA’isgivenbelow.

ENVIRONMENTAL IMPROVEMENT:

a) Environmentalimprovementmeasurestaken:

1 InstallationofadditionalauxiliarybagfiltersinCVRM.

2 InstallationofauxiliarybagfilterforHAG.

3 Installationofauxiliarybagfilteratclinkergantry.

4 Roof top rain water harvesting from semicircular rawmaterial.

5 Storage.

6 Opacitymetersincooler,coalmill&CVRM.

7 StacksasperSPCBguidelines.

8 Usage of fly ash & bed ash (waste product of thermalpowerplant).

9 Usage of 7% non magnetic char (waste of sponge ironplants)asalternativefuel.

b) Additional investments and proposals, if any, beingimplementedforEnvironmentalimprovement:

1 Waterspraysystemsattrucktippler.

2 Continued usage of fly ash (waste product of thermalpowerplant)toproducePPC.

3 Plantationof10000trees/year.

4 Conversionof Kiln&VRMESPof Line-1 intohybridbagfilter.

5 ContinuedusageofalternatewasterawmateriallikebedashofCPPandcinderofrefractoryplant.

c) Impactofthemeasuresforenvironmentalimprovement:

1 Withvariouswaterconservationmeasures,thedrawlandconsumption of sourcewater for factoryoperationandcolonyrequirementhasreducedbyalmost30%overthefouryearperiodfrom2009-10to2012-13.


REFRACTORY:

a) EnergyConservationmeasurestaken:

1 Silica bricks loading pattern and firing process has beenmodifiedtoimproveproductivityandtoreducefuelcost.

2 Loadingbaseofbellkilnshasbeenmodifiedto improveproductivityandtoreducefuelcostforconcastandslidegaterefractories.

3 Control system has been introduced in FSP 150T, Hornpress & FSP 400T of all plants to check idle running ofmotors.

4 18 watt LED lights have been provided in RFOmeetingroominplaceof40wattfluorescenttubelight.

5 False ceiling has been provided in concast plant mouldfillingairconditionedroomforeffectivecoolingwithlessenergyconsumptionof40Tonpackageairconditioner.

b) Additionalinvestmentandproposals

1 WasteheatrecoveredfromFBCHKilntouseinthedryersforconcastgreenproductsdryingandtostoptherunningofhotairgeneratormeantforit.

2 Wasteheatrecoveredfromallbellkilnstouse inall thedryerofconcastfinishedproductsdryingandtostoptherunningofhotairgeneratormeantforit.

3 Use of petroleum coke in BTK5 along with producer gasto replace furnace oil completely for firing basic/doloproducts.

4 Fastercoolingsysteminsilicach.kilnstoreducecycletime.

5 Directscreeningof incominglinkageBgradecoalandtocrushtheoversizeonlytoimproverecovery.

6 All the panel Air conditioner of CNC machines shall beinterlocked with the operating control of machines tocheckwastageofenergyduetoidlerunningofpanelairconditioners.

7 To provide interlock of dust filtermotorswith circuit tocheckwastageofenergyduetoidlerunningofdustfilters.

8 Tograduallyreplace40watttubelightfittingwith18wattLEDlightfittinginRefractoryoffice.

c) Impact of the measures at (a) & (b) above for reductionof energy consumption & consequent impact on cost ofproductionofgrades:

1 Reduction in fuel consumption and also cost for silica,concastandbasic/doloburntproducts.

2 Improvementinsilicaandconcastoutput.

3 Reduction in carbon emission to atmosphere therebyachievingenvironmentalimprovement.

4 Reductioninpowerconsumption.


21


2012-13 2011-12

CEMENT REFRACTORY CEMENT REFRACTORY

A POWER AND FUEL CONSUMPTION1 Electricity

a) PurchasedUnits(inlacskwh) 1394.31 136.41 2126.80 141.50TotalAmount(` inlacs) 8250.31 835.88 10970.49 779.15Rate/Unit(`) 5.92 6.13 5.16 5.51

b) Owngenerationi) ThroughDieselGenerators Unit(inlacskwh) 9.08 0.57 10.72 .86 Unitsperltr.Offuel(inKwh) 2.68 2.68 2.95 2.96 Cost/Unit(`) 20.18 20.23 14.55 14.45ii) ThroughSteamturbine/Generator Unit(inlacs) 1239.22 162.26 11.75 Unitsperltr.offueloil/gas Cost/Unit(`) 6.36 5.40 5.44

2 Coal(GradeBtoFWashCoalinKilnandCVRM, GradeA,B&E–RefractoryKilns)Quantity(inlacTonnes) 3.78 0.34 3.22 0.30TotalCost(` inlacs) 15040.82 1808.19 11480.85 1492.27Averagerate(`/MT) 3981.99 5269.31 3560.70 4938.86

2A CharQuantity(inlacTonnes) 0.23TotalCost` inlacs) 0.61Averagerate(`/MT) 2.72

3 FurnaceOilQuantity(K.ltr) 1486.308 1655.007 1917.11 2217.75Totalamount(` inlacs) 563.22 681.54 615.31 695.29Averagerate(`/K.ltr.) 37893.98 41180.74 32095.77 31351.11

4 Others/InternalGenerationa) LightDieselOilforPGSets

Quantity(K.ltr.) - - - -TotalCost(` inlacs) - - - -Rate/Unit(`/klltr.) - - - -

b) LightDieselOilforKHDKilnQuantity(K.ltr) - - - -Totalcost(` inlacs) - - - -Rate/Unit(`/K.ltr) - - - -

c) LightDieselOilforCVRMQuantity(K.ltr) - - - -Totalcost(` inlacs) - - - -AverageRate/Unit(`/K.ltr) - - - -

FORM-A

(PARTICULARS OF TOTAL ENERGY CONSUMPTION AND ENERGY CONSUMPTION PER UNIT OF PRODUCTION)

22


d) HSDOilforDGSets

Quantity(K.ltrs) 2.57 2.00 -

TotalCost(` inlacs) .74 0.92 -

RateperUnit(`/K.ltr) 28829.11 46191.98 -

e) HighSpeedDieselOiletc.forPayloaders&TippersatFactory

Quantity(K.Ltrs) 217.988 247.22 -

TotalCost(` inlacs) 94.51 106.71 -

RateperUnit(`/K.ltr) 43356.66 43163.75 -

f) HSDOilforDieselLocos

Quantity(K.ltr.) 145.42 103.16 -

Totalcost(` inlacs) 63.12 41.95 -

Rate/Unit(`/MT) 43408.57 40664.76 -

g) DynamicsFforKilns

Quantity(K.ltr.) 0.96 - 1.82

Totalcost(` inlacs) 2.44 - 4.98

Rate/Unit(`) 254415.63 - 273835.71

B CONSUMPTION PER UNIT OF PRODUCTION (PER MT)

Standards(ifany) 2012-13 2011-12

a) Cement

Electricity(KWH) 73.72 73.29

FurnaceOil(litres) .317 .508

CoalforKilnandCVRM(gradesBtoF-washcoal)(Kgs.) 100 106

Char(Kgs) 6

Others-L.D.Oil(litres.)

ForKHDKilnandCVRM -

HSDOilforPayloadersandtippers(ltrs.) .063 0.080

HSDOilforCVRM -

b) Refractory

Electricity(KWH) 301 320

FurnaceOil(K.litres)

ForOilFiredBricks 0.342 0.232

ForMixedFireBricks 0.065 0.056

Coal(MT)forRefractoryKilns(gradesA,BandE)

ForGasfiredbricks(MT) 1.105 1.045

ForMixedfirebricks(MT) 0.275 0.413

DynamicsF

Foroilfiredbricks(K.Ltrs) 0.00019 0.00020

23


REASONS FOR VARIATION IN THE CONSUMPTION OF POWER AND FUEL FROM STANDARDS OR PREVIOUS YEAR:

CEMENT:

1) InFinancialYear2013therehasbeenimprovementinClinkerandcementproduction.ThepertonconsumptionofCoalandFurnaceOilhasbeenimprovedinFinancialYear2013duetovariousmajorstakenattheplantlevel.

2) WealsohaveusedNMCasalternativefuelsubstitutingcoal.

3) Someoftheenergyandfuelsavingproposalshavebeen:

i) Kilninletsealreplacement

ii) ArrestoffalseairinrawmillcircuitandPreheatercircuit

iii) Coalmixoptimization

iv) VFDinstallationatvariouscircuits

v) OptimizationofCVRMandinternalmodifications

vi) PPCintermixinginsteadofintergrinding

vii) MaximizingkilnandcoolerhotairutilizationinCVRMbyarrestingfalseairinthecircuit.

REFRACTORY:

1) FurnaceOil:FurnaceOilConsumptionhasbeenhigherduetorunning of intermittent and low volume production of HighTemperature product viz Dolomite Bricks, mullite bricks andbasicbricksinFY2012-13againstFY2011-12

2) Coal:CoalConsumptionhasbeenhigherduetotrialfiring inSilicaathighertemperatureandhighersoakinghoursandlowvolumeinconcastin12-13against11-12.Thereisreductionincoalconsumptioninmixedfiringscheduleduetomorevolumeinmixedschedulein12-13against11-12

3) The electricity consumption kwh/Mt has come down from320to301ascokescreeningplanthadbeenstoppedforfourmonthsduetoprocurementofsizedcoalwhichwasfeddirectlytogasproducerplant.Further,therewasdecreaseinDolomiteProduction by 12% resulting in lower power consumption.Further measures taken like provision of false ceiling in AirconditionedareaofConcastMouldfillingstation,replacementoftubelightswithledlightsandhigherthroughputinTunnelKilnsandChamberKilns.

B. TECHNOLOGY ABSORBTION:

Effortsmadeintechnologyabsorption

24


FORM B

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION

Research&Development(R&D)

1. SpecificAreasinWhichR&DcarriedoutbytheCompany

CEMENT:

1 InvestigationstoupgradethequalityofPhosphoGypsumfromParadeep and Corramandal Fertilizer plants for usage as setcontrollerincement.

2 Usageof plantwaste (bed ash and cinder) andmineswaste(rejectstone)inmanufacturingofcement.

3 Identificationandusageofvariousalternatefuelsavailableinsurroundingareas.

4 ReductionofwaterintakeforefficientgrindinginCVRM.

REFRACTORY:

1 DevelopmentofSnorkelrefractoriesforRHDegasser

2 Development of Magnesia – hercyanite and Magnesia –Galaxitebricksforcementrotarykiln.

3 AluminazirconforglassIndustries.

4 Almagspinelforladles.

5 Prefiedprecastblocksforcementkilnburnertip.

6 DevelopmentofspiralSEN

7 Developmentofmonoblockstopperforhigherlife(17hrs)

2. BenefitsderivedasaresultoftheaboveR&D

CEMENT:

1 Optimized addition of Phospho Gypsum and correspondingreductioninmineralgypsumthusreducingitscost.

2 Conservationofnaturalresources.

3 Usage of industrialwastes effectively as fuel and alternativeraw material thereby reducing fuel cost and improvingsustainability.

REFRACTORY:

1 Importsubstitutionproduct.Suppliedtoonesteelplant.Orderinhandfortwosteelindustries.

2 Newbusinessopportunityincementkilns.

3 Newproductsforpetcokefiredregerativefurnace.

4 Businessopportunityforsteelindustriesforcleanersteel.

5 New product & new concept for cement industries to havebettermarketshare.

6 To minimize non metallic inclusion in steel. Businessopportunityforfuture.

7 Newproductforthinslabcastingaswellasforhighersequence.

3. FuturePlanofAction

CEMENT:

1. WasteheatrecoverybasedPowerplants.

REFRACTORY:

1 DevelopmentoflowcostDolomitebricksforAOD/Ladle.

2 DevelopmentofcoatingfriendlyMagAlspinelbricksforcementrotarykiln.

3 DevelopmentofChromebricksforgassifiers.

4 DevelopmentofcoatingrepellenterosionresistantAluminaSiCbricksfortertiaryairductofcementkiln.

5 DevelopmentofZirconiainsertsforvariousapplicationinflowcontrolrefractories.

6 SegmentedPurgingplug.

4. ExpenditureonR&D

a) Capital `0.55Lacs

b) Recurring `231.59Lacs

c) Total `232.14Lacs

d) TotalR&Dexpenditureasa Percentageoftotalturnover 0.11%

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

1. Efforts, in brief, made towards technology absorption,adaptationandinnovation.

1 The Company entered into an agreementwithM/s TYKJapanfortechnologytransferofslidegatemechanismandpermission tomanufacture in India. The technologyhasbeenfullyassimilated.

2 TheCompanyenteredintoanagreementwithM/sArdeeTechnologyPvt.Ltd.RourkelafordevelopmentoftundishSheath for continuous & controlled measurement oftemperatureintundish.

2. Benefitsderivedasaresultoftheaboveefforts,e.g.,productimprovement,costreduction,productdevelopment, importsubstitution.

25


1 ThetechnicalcollaborationwithM/sTYKCorp.,Japanhasenhanced the technical capability of the Company. TheCompanyhasmade improvement in theproductqualityafterpracticaluseofproducts.

2 Newmarketwillbeopenedupworthabout5crores.

3. In caseof imported technology (importedduring the last 5years),followinginformationmaybefurnished:

C. FOREIGN EXCHANGE EARNINGS AND OUT-GO

Activities Relating To Exports; Initiatives Taken To IncreaseExports;DevelopmentofNewExportMarketsforProductsandServices;AndExportMarkets.

REFRACTORY:

The export scenario has been subdued due to Europeanslowdown.This leadtoreduction inflowcontrolsaletoourtraditionslmarket – Spain, Italy, etc.Wewere however in apositiontoestablishourproductsinScandinavianCountries.

The projects in different parts of the world were deferredorwhere not forthcoming, especially in South East Asia andEurope.Evenrebuildsandrepairshadbeenkeptonhold.

Export of refractories by Chinese manufacturers directly tocustomersstartedleadingtopricepressure.

Your company, however, was able to retain theMiddle Eastmarkets and added new business in Africa & Saudi Arabia.Thathelpedusinmaintainingourexportperformancealmostsimilartopreviousyear.

TotalForeignExchangeused:`22580.03Lakhs

TotalForeignExchangeearned:`3654.12Lakhs

a) Technologyimported SlidegateMechanismfromTYKcorporationJapan

b) Yearofimport 2007-08

c) Hastechnologybeenfullyabsorbed

TN80machinemanufactured&establishedatISP&VSP,Bokarosteel plant, Bhilai steel plant,IISCO.

TN 60 machine has also beenmanufactured and is underoperating at Adhunik steeltwo plants at Rourkela &Jamshedpur. Jaiswal Nico,Raipur.

d) If not fully absorbed,areas where thishas not taken place,reasons therefore andfutureplanofaction

N.A.

26


ANNEXURE-IIIto the Directors’ Report CorporateGovernanceReport

I. PHILOSOPHY ON CODE OF GOVERNANCE

The Company firmly believes in and continues to practice good corporate governance. Corporate governance seeks to raise thestandardsofcorporatemanagement,strengthenstheBoardsystems,significantlyincreaseitseffectivenessandultimatelyservetheobjectiveofmaximizingtheshareholdersvalue.ThephilosophyoftheCompanyisinconsonancewiththeacceptedprinciplesofgoodgovernance.

II. BOARD OF DIRECTORS

A) CompositionofBoardofDirectors-TheCompanyhasathoroughlyprofessionalBoardwithamajorityofNon-ExecutiveandIndependentDirectors.

S.No.

NameoftheDirector

Designation CategoryofDirector No.ofsharesheld

No.ofBoardMeetingsattended

No.ofother

Director ships

TotalNo.ofCommittees

TotalNo.ofCommittees

Membership Chairmanship

1. ShriPradipKumarKhaitan

Chairman Non-executiveandNon-Independent

Nil 5 14 4 0

2. ShriGauravDalmia

ManagingDirector

Promoter,ExecutiveandNon-Independent

Nil 5 8 3 1

3. ShriD.D.Atal WholeTimeDirector

ExecutiveandNon–Independent

Nil 5 1 0 0

4. ShriD.N.Davar Director Non-executiveandIndependent

1,500 5 14 5 5

5. ShriPuneetYaduDalmia

Director Promoter,Non-executiveandNonIndependent

Nil 5 7 3 0

6. Dr.S.R.Jain Director Non-executiveandIndependent

Nil 5 2 3 1

7. Dr.R.C.Vaish Director Non-executiveandIndependent

Nil 5 8 3 1

8. ShriV.P.Sood Director NonExecutiveandIndependent

27,000 5 0 1 0

Notes:a) FiveBoardmeetingswereheldduringtheFinancialYear2012-13onMay14,2012,August06,2012,November06,2012,February02,2013and

March18,2013.

b) OtherDirectorshipsincludeonlytheDirectorshipsinpubliclimitedcompanies.

c) Thechairmanship/membershipofthecommitteesreportedaboveincludesthechairmanship/membershipofthecommitteesoftheCompany.

d) TheAnnualGeneralMeetingwasheldonSeptember17,2012andwasattendedbyShriD.D.Atal,WholeTimeDirectorandShriD.N.Davar,ChairmanoftheAuditCommittee.

e) TheNonExecutiveChairmanhasnotdesiredanofficeattheCompany’sexpense.

f) ShriV.P.SoodhasbecomeanindependentDirectorwitheffectfromApril01,2013.

B) Boardprocedure - Thetimegapbetweenany twomeetingsof theBoardofDirectors is notmore than fourmonths. ThedetailsaboutperformanceofthevariousunitsoftheCompany,financialposition,legalcompliance,quarterlyresults,sharetransferdetails,informationinAnnexureIAandallotheraspectsoftheCompanywhicharerelevantforreviewoftheBoardofDirectorsarebeinggiveninastructuredformatateachmeeting.ThesaidinformationcomplieswiththerequirementsoftheCodeofCorporateGovernancewithregardtotheinformationtobeplacedbeforetheBoardofDirectors.NoDirectorisaMemberinmorethantenCommitteesoractsasChairmanofmorethanfiveCommitteesofthecompaniesinwhichheisaDirector.EveryDirectorinformstheCompanyaboutthepositionheoccupiesinCompanies/Committeesandnotifiesthechangesasandwhentheytakeplace.

27


ACommitteeofDirectorsdecides theurgentbusiness thatarisesin between two Board meetings. The Committee consists of ShriD.N.Davar,ChairmanoftheCommitteeandDr.S.R.Jain,ShriPuneetYaduDalmiaandDr.R.C.Vaish,membersoftheCommittee.The particulars of Committee meetings held during the year 2012-2013andtheattendanceofthemembersareasfollows:

DateofCommitteemeeting

Shri D. N. Davar

Dr. S. R. Jain

Dr. R. C. Vaish

Shri PuneetDalmia

09.05.2012 Present Present Absent Present

10.07.2012 Present Present Present Present

C) Inter–serelationship-TheDirectorsarenotrelatedinter–se.

III. AUDIT COMMITTEE

A) Termsof reference - The role and termsof the reference oftheAuditCommitteecoverstheareasmentionedinClause49oftheListingAgreementandSection292AoftheCompaniesAct,1956,besidesothertermsasmaybereferredbytheBoardofDirectors. TheAuditCommittee reviews theManagementAuditreports, InternalAuditreportsandActionTakenreportof the Management thereupon, periodically. It also reviewsthe Annual Accounts and Quarterly Results of the CompanybeforetheyareplacedbeforetheBoardofDirectors.TheAuditCommittee also meets the Statutory Auditors and InternalAuditors periodically and discusses the findings, suggestionsand reviews the major accounting policies followed by theCompany.TheMinutesoftheAuditCommitteemeetingsarecirculatedtotheBoard.

TheAuditCommitteereviewstheauditedfinancialstatementswith reference to the Director’s Responsibility Statement interms of clause (2AA) of section 217 of the Companies Act,1956.Inadditiontotheabove,theCommitteealsoreviewsthefollowing:-

a) Management discussion and analysis of financialconditionsandresultsofoperations.

b) Statement of significant related party transactionssubmittedbytheManagement.

i) A statement in summary form of transactionswith related parties in the ordinary course ofbusiness is placed periodically before the auditcommittee.

ii) Details of material individual transactions withrelatedparties,whicharenotinthenormalcourseofbusiness,areplacedbeforetheauditcommittee.

iii) Details of material individual transactions withrelatedpartiesorothers,whicharenotonanarm’slengthbasis,areplacedbeforetheAuditCommittee,together with Management’s justification for thesame.

c) Management letters/letters of internal controlweaknesses,ifany,issuedbythestatutoryauditors;

d) Internal audit reports relating to internal controlweaknesses;and

e) The appointment, removal and terms of remunerationoftheInternalAuditoraresubjecttoreviewbytheAuditCommittee.

B) Composition of Audit Committee - The Audit CommitteecomprisesthreeMembersShriD.N.DavarasitsChairmanandDr.S.R.JainandDr.R.C.Vaish,allofwhomareIndependentDirectors.

C) Meetings and attendance - The meetings of the AuditCommitteeareusuallyheldbeforetheBoardMeetingswherethe Financial Results of the Company are considered. TheparticularsofAuditCommitteemeetingsheldduringtheyear2012-2013andtheattendanceofthemembersareasfollows:

DateofAuditCommitteemeeting

Shri D. N. Davar

Dr. S. R. Jain

Dr. R. C. Vaish

14.05.2012 Present Present Present





IV REMUNERATION OF DIRECTORS

TheremunerationofDirectorsisfixedbytheBoardofDirectorssubjecttoapprovaloftheshareholders.

The Remuneration Committee comprises three IndependentDirectorswithShriD.N.DavarasitsChairmanandDr.S.R.JainandDr.R.C.Vaishasitsmembers.

The particulars of Remuneration Committee meetings heldduringtheyear2012-2013andtheattendanceofthemembersareasfollows:

DateofRemunerationCommitteemeeting

Shri D. N. Davar

Dr. S. R. Jain

Dr. R. C. Vaish


28


TheSittingfeesof`20,000/-permeetingispaidtoNonWholeTimeDirectorsforattendingeachoftheBoardmeetingsandAudit Committee meetings and `10,000/- per meeting ispaid to the members of the Remuneration Committee andCommitteeofDirectors forattendingeachof theCommitteeofDirectorsmeetingsandRemunerationCommitteemeetingsbesidesreimbursementofoutofpocketexpenses.

The Non Whole - Time Directors are also paid commissionwithin the ceiling of one percent of the yearly profits. TheShareholders had, at the Annual General Meeting of theCompanyheldonSeptember22,2008approvedpaymentofcommissiontoNonWholeTimeDirectorsnotexceeding1%ofnetprofitsoftheCompanycomputedinthemannerprovidedundersection198(1)oftheCompaniesAct,1956.

The details of sitting fees and commission paid to the NonWhole-TimeDirectorsduringtheyear2012-13areasunder:

Sl.No.

NameofDirector

SittingFees

Commission Total

1. ShriPradipKumarKhaitan

1,00,000 10,00,000 11,00,000

2. ShriD.N.Davar 2,30,000 7,85,000 10,15,000

3. Dr.S.R.Jain 2,40,000 6,45,000 8,85,000

4. ShriPuneetYaduDalmia

1,30,000 5,75,000 7,05,000

5. Dr.R.C.Vaish 2,20,000 5,75,000 7,95,000

6. ShriV.P.Sood 1,10,000 5,75,000 6,85,000

During the year, the Company has paid `25,87,496/- asprofessional fees toM/s Khaitan& Co., a firm inwhich ShriPradipKumarKhaitan,DirectoroftheCompany,isapartner.

Therewasnootherpecuniaryrelationship/transactionoftheNon-ExecutiveDirectorsvisavistheCompany.

The terms of appointment and remuneration paid to ShriGauravDalmia,ManagingDirectoraregivenbelow:

ShriGauravDalmia

a) Tenure : 21stJuly2010to31stMarch2015

b) Remuneration : SalaryandAllowances:`1,30,00,000/-

Valueofperquisites-`6,66,562/-

ContributiontoPFandotherFunds- `15,39,996/-

c) Otherterms:TheAgreementmaybeterminatedbyeitherpartybygivingthreemonths’notice.IftheAgreementisterminatedby theCompany, theCompanyneeds topaythreemonthssalaryinlieuofthenotice.

ThetermsofappointmentandremunerationpaidtoShriD.D.Atal,WholeTimeDirector,aregivenbelow:

ShriD.D.Atal

a) Tenure : 1stApril2010to31stMarch2015

b) Remuneration : SalaryandAllowances: `1,10,37,948/-

VariablePay(fortheFY2011-12):`16,16,808/-

Valueofperquisites-`11,11,219/-

ContributiontoPFandotherFunds–`7,65,276/-

ShriD.D.Atalwillalsobepaidvariableportionofhispayfortheyear2012-13intheyear2013-14asperpolicyoftheCompanyinthisregard.

c) Otherterms:TheAgreementmaybeterminatedbyeitherpartybygivingthreemonths’notice.IftheAgreementisterminatedby theCompany, theCompanyneeds topaythreemonthssalaryinlieuofthenotice.

V SHAREHOLDERS/INVESTORSGRIEVANCECOMMITTEE

The Shareholders/Investors Grievance Committee monitorsexpeditiousredressalofinvestors’grievances.TheCommitteeconsistsofthreeDirectorswithDr.S.R.Jain,aNon-ExecutiveDirector,as itsChairmanandShriV.P.SoodandShriPuneetYaduDalmiaasitsmembers.

TheparticularsofShareholders/InvestorsGrievanceCommitteemeetingsheldduringtheyear2012-2013andtheattendanceofthemembersareasfollows:

DateofShareholders/InvestorGrievanceCommitteemeeting

Dr. S. R. Jain

ShriPuneetYaduDalmia

ShriV.P.Sood


InvestorComplaintsreceived/settledduringtheyear:

Sl.No.

TypeofComplaint Complaintsreceived

Complaintsredressed

Complaintspending

1. Transfer/TransmissionofShares.

0 0 0

2. Dividend 2 2 0

3. Forfeitureofshares 0 0 0

4. Miscellaneous(changeofaddress,namedeletion/nonreceiptofAnnualReport,etc.,)

1 1 0

TOTAL 3 3 0

29


The Company has designated an e-mail ID “[email protected]” for registering the complaints by investors/shareholders.The details are displayed on the Company’s website www.oclindialtd.in.

Nameanddesignationofcomplianceofficer

Ms. Rachna Goria, Company Secretary, is the ComplianceOfficer

VI GENERAL BODY MEETINGS

A) Locationandtime,whereAnnualGeneralMeetingsheldinlastthreeyears–

AGM DATE&TIME

LOCATION WHETHER SPECIALRESOLUTIONS WEREPASSED

60th AGM

17th September2010at4.30P.M.

Company'sRestHouseatRajgangpur-770017(Odisha)

a) Special resolutionwas passed pursuantto sections 198,269 309 read withSchedule XIII of theCompanies Act, 1956for appointmentof Shri D. D. Atal asWhole Time Directorfor the period fromApril 01, 2010 toMarch31,2015.a) Special resolutionwas passed pursuantto sections 198,269 309 read withSchedule XIII of theCompanies Act, 1956for appointment ofShriGauravDalmiaasManagingDirectorforthe period from July21,2010toMarch31,2015.

61th AGM


Company’sRestHouseatRajgangpur-770017(Odisha)

NoSpecialResolutionwaspassed.

62ndAGM


Company’sRestHouseatRajgangpur-770017(Odisha)

NoSpecialResolutionwaspassed.

ThepreviousAnnualGeneralMeetingoftheCompanywasheldon17thSeptember2012at4.30p.m.attheCompany’sresthouseat:Rajgangpur-770017,District:Sundargarh(Odisha).IntheabsenceofChairmanoftheBoardofDirectors,themeetingwas chaired by Shri D. D. Atal, Whole Time Director of theCompany.ShriD.N.Davar,ChairmanoftheAuditCommittee,alsoattendedtheAnnualGeneralMeeting.

B) ResolutionspassedbyPostalBallot

During the financial year 2012-13, no special resolutionwas passed through Postal Ballot. However, a resolutionunder section 293(1)(a) of the Companies Act, 1956 waspassed through postal ballot pursuant to Section 192A ofthe Companies Act, 1956 read with Companies (Passing ofResolutionbyPostalBallot)Rules,2011.

ASpecialResolutionundereachofSection17(1)andSection149(2A)oftheCompaniesAct,1956isproposedtobepassedthroughpostalballot.

VII DISCLOSURES

A) TheCompanyduringtheyearhasnotenteredintotransactionsof material nature with its promoters, the Directors, theirrelatives, subsidiary companies, etc. thatmayhavepotentialconflictofinterestwiththeCompany.Nopenalties,strictureshavebeenimposedontheCompanybythestockexchangesorSEBIonanymattersrelatedtocapitalmarketsduringthelast 3years.

B) Particulars of contract in which Directors are interested: The CompanyhasnotenteredintoanycontractinwhichanyoftheDirectors is interested except that the Company has availedlegal professional services of Khaitan & Co., in which ShriPradipK.KhaitanisaPartner.

C) Code of Conduct: The Company’s Board of Directors andofficers in Senior Management have confirmed compliancewith the Code of Conduct of the Company for the financialyear2012-13.AdeclarationtothiseffectbytheWholeTimeDirectorformspartofthisreport.TheCodeofConductframedfor compliance by the Directors and Senior Management isavailableontheCompany’swebsitewww.oclindialtd.in.

D) Risk Management: Risk evaluation and management is anongoing process within the Company. The Company hasidentifiedthemajorriskareasand laiddownframeworkforassessmentofriskswhicharereviewedfromtimetotime.

E) Details of compliance with mandatory requirements and adoption of non-mandatory requirements: TheCompanyhascompliedwithallmandatoryrequirementsofclause49oftheListingAgreement.

ARemunerationCommitteeoftheBoardisinplace.DetailsoftheRemunerationCommitteehavebeenprovidedunder thesectionIV“RemunerationofDirectors”.

F) Trading in the Company’s shares by Directors and Designated Employees: As per the SEBI (Prohibition of Insider Trading)Regulations,1992,asamendedfromtimetotime,theCompanyisrequiredtohaveaComplianceOfficerwhoisresponsibleforsettingforthpolicies,procedures,monitoringadherencetotherules for the prevention of price sensitive information, pre-clearanceof trade,monitoringof tradesand implementation

30


of the Code of Conduct for trading in Company’s securitiesundertheoverallsupervisionoftheBoard.TheCompanyhasadoptedaCodeforPreventionofInsiderTrading.Ms.RachnaGoria,CompanySecretary,isthecomplianceOfficerinrespectofcomplianceoftheCode.

VIII. MEANS OF COMMUNICATION

TheCompanyapprisestheshareholdersthroughAnnualreports,publicationofun-auditedquarterlyresultsandauditedfinancialresults in Economic Times (English) and in Oriya languagenewspaper. The Company is also giving information about its products through its Web site www.oclindialtd.in and www.ocl.in.

IX. SHAREHOLDERS INFORMATION

A) General information

RegisteredOffice : Rajgangpur-770017,(Odisha)

CorporateOffice : 17thFloor,NarainManzil23,BarakhambaRoadNewDelhi-110001

DetailsofPlantlocation

: CEMENTandREFRACTORYAt:Rajgangpur-770017Dist.:Sundargarh(Odisha)KAPILASCEMENTMANUFACTURINGWORKSCuttack-753004(Odisha)

Financialyear : 1stAprilto31stMarch

AnnualGeneralMeetingDate,timeandVenue

: 14thSeptember,2013at4.30PMRestHouseoftheCompanyatRajgangpur-770017,Dist.Sundargarh(OdishaState)

BookClosure : 06thSeptember2013to14thSeptember2013(bothdaysinclusive)

Dividendpayment

: Dividendwillbepaidafter14thSeptember,2013subjecttodeclarationbytheshareholdersattheAnnualGeneralMeeting

B) Appointment/Reappointment of Directors

Theappointment/re-appointmentofDirectorsiscommunicatedto shareholders through the Notice of the Annual GeneralMeeting.Inthecaseofnewappointmentsinformationaboutthe new Director is given through explanatory statementannexedtotheNotice.

C) Financial Results

TheCompany’squarterlyun-auditedresultsandhalfyearlyun-auditedresultsaresubjectedtolimitedreviewbyAuditorsandAnnualresultsaresubjectedtoAuditbytheStatutoryAuditors.Quarterlyun-auditedandannualauditedresultsarepublishedin newspapers and are also provided to Stock Exchanges.TheCompanydisplays the financial results and shareholdingpatternontheCompany’sWebsitewww.oclindialtd.in.

D) Share Transfer system and Registrars & share Transfer Agents

Pursuant to directions of SEBI the facility to hold theCompany’sshares inelectronicformismadeavailabletotheshareholders as the Company has joined both DepositoriesnamelyNSDLandCDSL.ShareTransferDocumentsforphysicaltransferandrequestsfordematerializationofsharesaresenttotheCompany’sRegistrarsM/sCBManagementServices(P)LimitedatP-22BondelRoad,Kolkata-700019.

E) Listing on Stock Exchanges

TheCompany’sequitysharescontinuetobelistedandactivelytradedonNationalStockExchangeofIndiaLimitedandBombayStock Exchange Limited. The Company paid the listing fee forthe year 2012-13 to theBombay Stock Exchange Limited andNationalStockExchangeof IndiaLimitedwithinthestipulatedtime.

NameoftheStockExchange CodeforEquityshares

TheBombayStockExchangeLimited 502165

TheNationalStockExchangeofIndiaLimited

OCL

31


F) SharepricesasperquotationsofBombayStockExchangeLimited&NationalStockExchangeofIndiaLimited

Month BombayStockExchangeLimited NationalStockExchangeofIndiaLimited

High(`) Low(`) High(`) Low(`)

April2012 107.00 94.00 107.00 93.00

May2012 95.90 75.10 96.30 75.10

June2012 95.95 77.75 102.00 77.70

July2012 101.90 90.00 100.50 89.50

August2012 127.90 100.00 129.00 100.00

September2012 166.50 114.00 167.40 100.00

October2012 167.00 146.00 166.90 145.20

November2012 169.95 137.50 170.00 137.40

December2012 162.00 141.00 170.00 140.00

January2013 156.75 144.20 156.00 145.30

February2013 159.00 147.00 156.00 147.00

March2013 155.00 135.00 157.00 136.15

G) Shareholdingpatternason31stMarch,2013

Category Physical NSDL CDSL Total

ResidentIndividuals 1519290 5561508 1054798 8135596

FinancialInstitutions 18000 -- -- 18000

ForeignInstitutionalInvestors 300 205178 -- 205478

ForeignNationals 18080 -- -- 18080

NonResidentIndians 18435 2513571 9531 2541537

BodiesCorporate 1382039 32051235 105758 33539032

ClearingMember -- 84456 11890 96346

MutualFunds -- -- -- --

Trusts -- 12276620 -- 12276620

Banks 32245 33586 3700 69531

OverseasCorporateBody -- -- -- --

InsuranceCompanies -- -- -- --

Total 2988389 52726154 1185677 56900220

H) DistributionofShareholdingason31stMarch2013

Range No.ofShareholders %ofShareholders No.ofShares %ofShares

1-100 5555 49.168 253124 0.44

101-250 1832 16.2153 329856 0.58

251-500 1452 12.8518 581195 1.02

501-1000 1100 9.7362 845247 1.49

1001-2000 697 6.1692 1002388 1.76

2001-3000 221 1.9561 560930 0.99

3001-4000 107 0.9471 378084 0.66

4001-5000 71 0.6284 326804 0.57

5001-10000 130 1.1506 880090 1.55

10001&ABOVE 133 1.1772 51742502 90.94

TOTAL 11298 100% 56900220 100%

32


I) Performanceincomparisontobroad-basedindices,i.e.,BSESensexandS&PCNXNifty.

OCLSharePriceonBSEvisavisBSESensex April2012-March2013

Months BSESensexClose OCLSharePrice(onBSE)

High` Low` Close`

April2012 17,318.81 107.00 94.00 95.35

May2012 16,218.53 95.90 75.10 79.95

June2012 17,429.98 95.95 77.75 91.80

July2012 17,236.18 101.90 90.00 100.10

August2012 17,429.56 127.90 100.00 118.60

September2012 18,762.74 166.50 114.00 156.95

October2012 18,505.38 167.00 146.00 155.55

November2012 19,339.90 169.95 137.50 143.20

December2012 19,426.71 162.00 141.00 151.75

January2013 19,894.98 156.75 144.20 151.95

February2013 18,861.54 159.00 147.00 150.40

March2013 18,835.77 155.00 135.00 141.80

OCLSha

rePriceonBS

E(Closing

)

BSESensex

19500

19000

18500

18000

17500

17000

16500

16000Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

200

180

160

140

120

100

80

40

60

Date

OCLSharePriceonBSE(Closing)BSESensex

OCL SHARE PRICE ON BSE VIS A VIS BSE SENSEX

20000

33


OCLSharePriceonNSEvisavisS&PCNXNifty April2012-March2013

Months S&PCNXNiftyClose OCLSharePrice(onNSE)

High` Low` Close`

April2012 5248.15 107.00 93.00 94.50

May2012 4924.25 96.30 75.10 80.05

June2012 5278.90 102.00 77.70 92.10

July2012 5229.00 100.50 89.50 100.10

August2012 5258.50 129.00 100.00 119.75

September2012 5703.30 167.40 100.00 157.95

October2012 5619.70 166.90 145.20 156.15

November2012 5879.85 170.00 137.40 144.15

December2012 5905.10 170.00 140.00 150.70

January2013 6034.75 156.00 145.30 151.95

February2013 5693.05 156.00 147.00 149.70

March2013 5682.55 157.00 136.15 142.75

OCLSha

rePriceonNSE(C

losing

)

6200

5800

5600

5400

5200

5000

4600

4800

Apr-12M ay-12J un-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

200

180

160

140

120

100

80

40

60

Date

OCLSharePriceonNSE(Closing)

6000

OCLSHAREPRICEONNSEVISAVISS&PCNXNIFTY

34


AUDITORS’CERTIFICATEONCORPORATEGOVERNANCE

TOTHESHAREHOLDERSOFOCLINDIALIMITED

1. WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyOCLIndiaLimited(“theCompany”)fortheyearendedMarch31,2013asstipulatedinClause49oftheListingAgreementofthesaidCompanywithStockExchangesinIndia.

2. TheComplianceof conditionsofCorporateGovernance is the responsibility of themanagement.Ourexaminationwas limited tothereviewofproceduresand implementationthereof,adoptedby theCompany forensuring thecomplianceof theconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

3. Inouropinionandtothebestofour informationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedListingAgreement.

4. WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.

For V.SankarAiyar&Co.CharteredAccountants

ICAIFRN:109208W

(R.Raghuraman)Place:NewDelhi PartnerDate:May29,2013 MembershipNo.81350

TO

THEMEMBERSOFOCLINDIALIMITED

BasedontheaffirmationprovidedbytheDirectorsandpersonsinSeniorManagementoftheCompany,itisdeclaredthatalltheBoardmembersandSeniorManagementpersonnelarecomplyingwiththeCodeofConductframedbytheCompanyfortheDirectorsandSeniorManagement.

For OCLIndiaLimited

D.D.AtalCEO&WholeTimeDirector

Dated:May29,2013

35


INDEPENDENTAUDITORS’REPORTTotheMembersofOCLIndiaLimited.

ReportonFinancialStatements

We have audited the accompanying financial statements ofOCL IndiaLimited(“theCompany”),whichcomprisetheBalanceSheetas at 31st March 2013, the Statement of Profit & Loss and theCashFlowStatement for theyear thenendedanda summaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’sResponsibilityfortheFinancialStatements

Management is responsible for thepreparationof thesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewith the Accounting Standards referred to in sub-section (3C) ofsection211oftheCompaniesAct,1956(“theAct”).Theresponsibilityincludes thedesign, implementationandmaintenanceof internalcontrolrelevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Our responsibility is to express an opinion on these financialstatements based on our audit. We conducted our audit inaccordancewiththeStandardsonAuditingissuedbytheInstituteof Chartered Accountants of India. Those standards require thatwe comply with ethical requirements and plan and perform theaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabout the amounts and disclosures in the financial statements.The procedures selected depend on the auditor’s judgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthose risk assessments, the auditor considers internal controlrelevant to the Company’s preparation and fair presentationof the financial statements in order to design audit proceduresthat are appropriate in the circumstances.Anaudit also includesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebymanagement,as well as evaluating the overall presentation of the financialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion and to the best of our information and accordingto theexplanationsgiven tous, thefinancial statementsgive theinformationrequiredbytheActinthemannersorequiredandgivea true and fair view in conformitywith the accountingprinciplesgenerallyacceptedinIndia:

a) inthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasat31stMarch2013;

b) inthecaseoftheStatementofProfitandLoss,oftheProfitfortheyearendedonthatdate;and

c) inthecaseofCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.

ReportonOtherLegalandRegulatoryRequirements

1 Asrequiredbysection227(3)oftheAct,wereportthat:

(a) we have obtained all the information and explanations,which to the best of our knowledge and belief werenecessaryforthepurposesofouraudit;

(b) inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks;

(c) theBalanceSheet,StatementofProfitandLossandCashFlowStatementdealtwithbythisreportareinagreementwiththebooksofaccount;

(d) inouropinion,theBalanceSheet,StatementofProfitandLossandCashFlowStatementcomplywiththeAccountingStandardsreferredtoinsub-section(3C)ofsection211oftheCompaniesAct,1956.

(e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch2013andtakenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedas on 31.03.2013 frombeing appointed as a director intermsofclause(g)ofsub-section(a)ofsection274oftheCompaniesAct,1956.

2. AsrequiredbytheCompanies(Auditor’sReport)Order,2003(“the Order”) issued by the Central Government of India intermsof sub-section (4A)of section227 (4A)of theAct,weencloseintheannexure,astatementonthemattersspecifiedinparagraphs4and5ofthesaidOrdertotheextentapplicable,on thebasisof such checksof thebooksand recordsof theCompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous.

ForV.SankarAiyar&Co.CharteredAccountants

ICAIFirmRegn.No.109208W

R.RaghuramanPlace:NewDelhi PartnerDated:29.05.2013 MembershipNo.081350

36


Annexurereferredtoinparagraph2oftheAuditors’reporttotheshareholdersof OCLIndiaLimitedfortheyearended31stMarch2013

i a) TheCompany ismaintainingproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

b) As explained to us and keeping in view that physicalverificationofthefixedassetscoveringasubstantialvalueof the assets was carried out by an outside agency inthepreviousyear, themanagementhascarriedout thephysical verification of its assets once during the yearexcept for furniture & fixtures and some part of officeequipments. According to information and explanationsgiventous,nomaterialdiscrepancieshavebeennoticedto the extent of such verification. In our opinion thefrequencyofverificationisreasonableinrelationtosizeofthecompany.

c) Sincethereisnosubstantialdisposaloffixedassetsduringthe year, the preparation of financial statements on agoingconcernbasisisnotaffectedonthisaccount.

ii a) Thestockoffinishedgoods, stores, sparepartsand rawmaterials,exceptthoseheldbyconsigneesandstoredincustomerpremises,havebeenphysically verifiedby themanagementat reasonable intervals. In respectof stockwith consignees, confirmation certificates have beenreceived.

b) Inouropinion,theproceduresofphysicalverificationofinventoryfollowedbythemanagementarereasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.

c) Inouropinion,theCompanyismaintainingproperrecordsof inventoryandnomaterialdiscrepancieswerenoticedonphysicalverification.

iii a) The Company has not granted any loans, secured orunsecured,tocompanies,firmsorotherpartiesrequiredtobecoveredintheregistermaintainedundersection301oftheCompaniesAct,1956.

b) The Company has not taken any loans, secured orunsecured, from companies, firms or other partiesrequiredtobecovered in theregistermaintainedundersection301oftheCompaniesAct,1956.

iv In our opinion and according to the information andexplanationsgiventousandhavingregardtotheexplanationsinrespectofthemannerinwhichthepurchasepriceofsome

of the items are determined or where alternate quotationsarenotavailable, thereareadequate internalcontrolsystemcommensuratewith thesizeof theCompanyand thenatureof itsbusinessforthepurchaseof inventoryandfixedassetsandforthesaleofgoodsandservices.Duringthecourseofouraudit,wehavenotobservedanycontinuingfailuretocorrectmajorweaknessesininternalcontrolsystemoftheCompany.

v a) Accordingtotheinformationgiventous,theparticularsofcontractsorarrangementsthatneedtobeenteredintoaregisterinpursuanceofsection301oftheCompaniesAct,1956havebeensoentered.

b) There were transactions exceeding `five lakhs made inpursuanceofsuchcontractsorarrangementsrelatingtoprofessionalservicesrenderedduringtheyearbyalegalfirm,forwhichcompliancewithprevailingmarketpriceisnotfeasible.

vi Inouropinionandaccordingtoinformationandexplanationsgiventous,theCompanyhascompliedwiththeprovisionsofsections58Aand58AAoranyotherrelevantprovisionsoftheAct and the rulesmade there under,where applicable,withregardtodepositsacceptedfromthepublic.

vii TheCompanyhasaninternalauditsystem,whichinouropinion,iscommensuratewithitssizeandnatureofitsbusiness.

viii Wehavebroadlyreviewedthebooksofaccountsmaintainedby the Company, pursuant to the rulesmadeby the CentralGovernmentforthemaintenanceofcostrecordsunderclause(d) of sub-section (1) of section 209 of the Companies Act,1956andareof theopinion thatprima facie, theprescribedaccounts and records have been maintained. We have not,however,madeadetailedexaminationof the recordswithaviewtodeterminewhethertheyareaccurateandcomplete.

ix a) AccordingtotherecordsoftheCompany,theCompanyhasbeengenerallyregularindepositingundisputedstatutorydues including Provident Fund, Investor Education andProtection Fund, Employees’ State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Customs Duty,Excise Duty, Cess and any other statutory dues withthe appropriate authorities. There were no arrears ofundisputedstatutoryduesasat31stMarch,2013,whichwere outstanding for a period ofmore than sixmonthsfromthedatetheybecamepayable.

37


b) Thedisputedduesofdifferentyears,whichhaveremainedunpaid as on 31st March, 2013, for which appeals arependingasunder:

Natureofdues

Year Amount(` Inlacs)

Forumwherepending

OrissaSalesTax

1995-96and1997-98 to 2000-01

162.63 OrissaSalesTaxTribunal

CentralSalesTax

2006-07 0.11 Addl.CommissionerofSalesTax,cuttact

CentralSalesTax

2007-08 to 2009-10

105.00 Addl.CommissionerofSalesTax,(NorthZoneOdisha)

OrissaVAT 2005-06 361.26 CommissionerofSalesTax,

WestBengalSalesTax

1996-97,1999-00and2004-05

50.93 WestBengalCommercialTaxesAppellate&RevisionalBoard

CenvatCredit

01.12.2006 to 30.06.2008 and30.06.2011

4265.49 CESTAT,KolkataCCE,BBSR

IncomeTax A.Y.2003-2004and2005-2006

17.13 ITATDelhi

IncomeTax A.Y.2005-06to 2009-10

713.47 CIT(A)Delhi

x TheCompanyhasnoaccumulatedlossesandhasnotincurredcashlossesduringthefinancialyearcoveredbyourauditorintheimmediatelyprecedingfinancialyear.

xi On the basis of the verification of records and informationandexplanationsgiventous,theCompanyhasnotdefaultedin repayment of dues to financial institutions or banks ordebentureholders.

xii TheCompanyhasnotgrantedloansandadvancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.

xiii TheCompanyisnotachitfund/nidhi/mutualbenefitfund/ society. Therefore, the provisions of clause 4(xiii) of theCompanies(AuditorsReport)Orderarenotapplicable.

xiv The Company is not dealing or trading in shares, securities,debenturesandother investments.Therefore, theprovisionsofclause4(xiv)oftheCompanies(AuditorsReport)Orderarenotapplicable.

xv In our opinion and according to the information andexplanationsgiven tous, the termsandconditionsonwhichthecompanyhasgivenguaranteesfortheloanstakenbyothersfrombanks,arenot,primafacie,prejudicialtotheinterestoftheCompany.

xvi In our opinion and according to the information andexplanationsgiventoustermloanstakenduringtheyearwereappliedforthepurposeforwhichtheloanswereobtained.

xvii According to the information and explanations given to us,the Cash Flow statement examined by us and on an overallexaminationofthebalancesheetoftheCompany,wereportthatfundsraisedonshort-termbasishavenotbeenusedforlongterminvestment.

xviiiDuringtheyear,theCompanyhasnotmadeanypreferentialallotmentof shares topartiesandcompaniescovered in theRegistermaintainedundersection301oftheAct.

xix TheCompanyhasnotissuedanydebenturesduringtheyear.Therefore,thequestionofcreatingsecurity/chargedoesnotarise.

xx Sincetherewerenopublicissueofsecuritiesduringtheyear,verificationoftheenduseofmoneydoesnotarise.

xxi Basedontheauditprocedureperformedandtherepresentationobtained from the management, we report that no case offraud on or by the Company has been noticed or reportedduringtheyearunderaudit.

For V.SankarAiyar&Co.CharteredAccountants

Firm’sRegn.no.109208W

R.RaghuramanPlace:NewDelhi PartnerDated:May29,2013 MembershipNo.81350

38


(` Lakhs)

Note No. 2012-13 2011-12

I. EQUITY&LIABILITIESShareholders'Funds

ShareCapital 2 1,138.50 1,138.50ReservesandSurplus 3 102,728.12 89,164.52

103,866.62 90,303.02NonCurrentLiabilities

Long-termborrowings 4 43,259.14 53,244.68Deferredtaxliabilities(Net) 5 12,952.24 12,046.80Otherlongtermliabilities 6 3,179.99 1,983.33Long-termprovisions - -

59,391.37 67,274.81CurrentLiabilities

Short-termborrowings 7 24,644.38 7,956.94Tradepayables 8 16,097.33 11,042.29Othercurrentliabilities 9 29,888.03 25,121.02Short-termprovisions 10 1,347.03 1,631.44

71,976.77 45,751.69Total 235,234.76 203,329.52

II. ASSETSNon-currentAssets

Fixedassets 11Tangibleassets 104,672.62 106,253.84Intangibleassets 455.93 103.38 Capitalwork-in-progress 13,639.46 14,818.42Intangibleassetsunderdevelopment 31.06 39.60

Non-currentinvestments 12 6,212.39 4,885.82Long-termloansandadvances 13 3,849.01 899.55 Othernon-currentassets 14 27.02 45.99

128,887.49 127,046.60CurrentAssets

Currentinvestments 15 26,518.72 12,742.80Inventories 16 35,254.25 26,025.17Tradereceivables 17 17,495.03 12,068.78Cash&bankbalances 18 14,024.58 13,281.71Short-termloansandadvances 13 12,701.98 11,490.16Othercurrentassets 19 352.71 674.30

106,347.27 76,282.92Total 235,234.76 203,329.52

SignificantAccountingPolicies 1Othernotesformingpartofthefinancialstatements 28Theaccompanyingnotesformanintegralpartofthefinancialstatements

BALANCESHEETAsat31stMarch,2013

forOCL INDIA LIMITED

OnbehalfoftheBoard

AnnexuretoourReportofDateforVSankarAiyar&Co.CharteredAccountants

FirmRegistrationNo:109208W

RachnaGoriaCompanySecretary

GauravDalmia ManagingDirector

Place:NewDelhiDate:29.05.2013

R.RaghuramanPartner

MNo.81350

D.N.SinghExecutiveDirector(Finance)&ChiefFinancialOfficer

D. N. DavarDirector

39


(` Lakhs)

Note No. 2012-13 2011-12INCOME

Revenuefromoperations 20 1,81,728.89 1,47,043.50

Otherincome 21 2,531.40 3,315.14

1,84,260.29 1,50,358.64

EXPENDITURE

Costofmaterialsconsumed 22 44,686.51 46,647.02

Purchasesofstockintrade 23 7,734.66 2,367.81

Freight,clearing&handlingonownclinker 2,658.00 1,307.07

Changesininventoriesoffinishedgoods&workinprogress&stockintrade

24 (10,371.17) 4,437.07

Employeebenefitsexpense 25 9,659.21 7,608.40

Powerandfuel 31,722.74 26,955.62

Financecosts 26 7,704.10 7,493.50

Depreciation&amortizationexpense 13,843.39 12,758.07

Otherexpenses 27 53,978.82 36,986.37

1,61,616.26 1,46,560.93

PROFIT BEFORE TAXATION 22,644.03 3,797.71

TaxExpense-Current 5900.00 500.00

-Taxrelatingtoearlieryears 200.00 -

Less:MATcreditentitlement - (494.65)

-Deferred 905.44 611.35

PROFIT/(LOSS)FORTHEYEARAFTERTAX 15,638.59 3,181.01

EARNINGPEREQUITYSHARE(FaceValueof`2/-each)

1)Basic(`) 27.48 5.59

2)Diluted(`) 27.48 5.59

SignificantAccountingPolicies 1

Othernotesformingpartofthefinancialstatements 28

Theaccompanyingnotesformanintegralpartofthefinancialstatements

STATEMENTOFPROFITANDLOSS Fortheyearended31stMarch,2013


OnbehalfoftheBoard






R.RaghuramanPartner

MNo.81350


D. N. DavarDirector

40


(` Lakhs)

2012-13 2011-12A. CASH FLOW FROM OPERATING ACTIVITIES

Profitbeforetaxfromcontinuingoperations 22,644.03 3,797.71

Adjustmentfor:

Depreciation&AmortizationExpense 16,157.39 15,287.11

Loss/(Profit)onsaleoffixedassets 10.89 18.45

EffectofExchangeRatedifference 254.00 438.55

ProfitonsaleofInvestment (1.58) (20.50)

Interestexpense 7,296.31 7,172.83

Interestreceiptoninvestment (70.03) (688.77)

DividendonInvestment (1,283.33) (1,424.77)

22,363.65 20,782.90

Operatingprofitbeforeworkingcapitalchanges 45,007.68 24,580.61

AdjustmentsforWorkingCapitalchanges

Increase/(decrease)intradepayables 5,055.04 (781.04)

Increase/(decrease)inshorttermprovisions 39.65 (54.16)

Increase/(decrease)inothercurrentliabilities 4,947.40 (440.62)

Increase/(decrease)inotherlongtermliabilities 1,196.66 261.23

Decrease/(increase)intradereceivables (5,426.25) 1,074.59

Decrease/(increase)ininventories (9,229.08) (619.66)

Decrease/(increase)inlongtermloansandadvances (63.76) 67.97

Decrease/(increase)inshorttermloansandadvances (1,623.75) (354.53)

Decrease/(increase)inothercurrentassets 321.59 (480.67)

Decrease/(increase)inothernoncurrentassets 18.97 (6.42)

(4,763.53) (1,333.31)

CashgeneratedfromOperations 40,244.15 23,247.30

TaxPaid(Net) (6,688.07) (2,626.53)

NetCashfromOperatingActivities 33,556.08 20,620.77

B. CASH FLOW FROM INVESTING ACTIVITIES

PurchaseofFixedAssets (17,143.19) (7,822.63)

Sale/writeoffofFixedAssets 64.50 169.90

Interestreceiptoninvestment 70.03 688.77

ProfitonsaleofInvestment 1.58 20.50

PurchaseofnoncurrentInvestment(Net) (4,865.69) (4,126.96)

PurchaseofcurrentInvestment(Net) (9,795.92) (12,742.80)

Advanceforallotmentofshares - (440.88)

Loansgiven - (1,000.00)

Loansgivenreceivedback 1,000.00 -

DividendonInvestments 1,283.33 1,424.77

NetCashgenerated/(-)usedinInvestingActivities (29,385.36) (23,829.33)

CASHFLOWFortheyearended31stMarch,2013

41


(` Lakhs)

2012-13 2011-12C. CASHFLOW FROM FINANCING ACTIVITIES

Increase/(decrease)inlongtermborrowings (10,165.92) (11,777.81)

Increase/(decrease)inshorttermborrowings 16,687.44 (497.20)

EffectofExchangeRatedifference (254.00) (438.55)

CapitalSubsidyReceived - 3.00

IPRBenfitReceived 576.84 -

DividendPaid (1,138.01) (2,276.01)

TaxesonDividendPaid (184.61) (369.23)

InterimDividendpaid (1,422.51) -

Taxoninterimdividendpaid (230.77) -

Interestexpense (7,296.31) (7,172.83)

NetCashfromFinancingActivities (3,427.85) (22,528.63)

NetchangesinCashandbankbalances 742.87 (25,737.19)

NetIncrease/(-)DecreaseinCashandBankbalances

Balanceattheendoftheyear 14,024.58 13,281.71

(Referfootnoteinnoteno18)

Balanceatthebeginningoftheyear 13,281.71 39,018.90

742.87 (25,737.19)

CASHFLOWFortheyearended31stMarch,2013(contd.)


OnbehalfoftheBoard






R.RaghuramanPartner

MNo.81350


D. N. DavarDirector

42


NOTESTOTHEBALANCESHEETANDSTATEMENTOFPROFITANDLOSS

1 SIGNIFICANT ACCOUNTING POLICIES

1.1 AccountingConvention

The financial statements are prepared under historicalcostconvention(exceptforcertainfixedassetswhicharerevalued), on a going concern basis and in accordancewith applicable accounting standards prescribed undertheCompanies(AccountingStandards)Rules,2006.

1.2 UseOfEstimates

The preparation of financial statements requiresmanagementtomakecertainestimatesandassumptionsthataffecttheamountreportedinthefinancialstatementsand notes thereto. Differences between actual resultsandestimatesarerecognisedintheperiodinwhichtheymaterialise

1.3 FixedAssetsincludingintangibleAssets

Land,Buildings,PlantandMachineryrelatingtoCementand Refractory Works acquired/installed upto 31.12.81were revaluedasat31.12.85. Allotherfixedassetsareshownatcost(netofcenvat).Borrowingcostsattributabletotheacquisitionofqualifyingassetsand all significantcostsincidentaltotheacquisitionofassetsarecapitalised.Intangible assets are recorded at consideration paid foracquisition of such assets and are carried at cost lessaccumulated amortisation.Capital Work in Progress &IntangilbeAssetsunderdevelopmentareshownatcost.

1.4 DepreciationandAmortisation

Depreciation on Plant andMachinery added in Cement& Refractory after 31.12.81 is provided on straight linemethod and depreciation on all other assets includingKapilasCementWorks,ClinkerisationUnitatRajgangpur(Line-II) & Captive Power Plant is provided on reducingbalancemethod.DepreciationhasbeencalculatedinthemannerandattheratesspecifiedinScheduleXIVtotheCompaniesAct,1956.Anintangibleassetsismeasuredatcostandamortisedsoastoreflectthepatterninwhichtheassetseconomicbenefitareconsumed.Theusefullifehasbeenestimatedas3-5yearsincasecomputersoftware.

1.5 Investments

Long term Investments are valued at cost. Provisionfordiminution in value ismade, if in theopinionof themanagement, such a decline is considered other thantemporary.CurrentInvestmentarevaluedatcostorfairvaluewhicheverislower.

1.6 Inventories

Stocks of finished and partly finished products arevalued at lower of cost or net realisable value and forthis purpose, cost is determined on absorption costingmethod.Costoffinishedgoodsincludesexciseduty.RawMaterials, other inputs, stores and spares are valued atlowerofcost(netofcenvat)ornetrealisablevalueafterprovidingforobsolescence.CostisdeterminedonFIFO/WeightedAverageBasis.

1.7 Revenue Recognition and Accounting for Sales &Services

Revenue from domestic sale of goods is recognisedwhensignificantrisksandrewardsaretransferredtothecustomers. Export Sales areaccounted foron the basisofdateofBill of Lading. Sales arenetof tradediscountand sales tax but inclusive of excise duty. Bonus orpenaltylinkedtooperatingefficiencyofproducts,whereapplicable, is accounted for upon crystalization. Incomefrom services are accounted for when becomes due.Interest income is recognised on time proportionatebasis.Dividendincomeisaccountedfor,whentherighttoreceivethesameisestablished.

1.8 TreatmentofEmployeeBenefits

The Company makes regular contributions to dulyconstituted Funds set up for Provident Fund, FamilyPension,GratuityandSuperannuationwhicharechargedto revenue. Contribution togratuity fundandprovisionforleaveencashmentaremadeonthebasisofactuarialvaluation.

1.9 ResearchandDevelopment

Revenueexpensesarechargedoffintheyearinwhichitis incurred under the natural heads of account. Capitalexpenditure, when incurred is added to the cost of fixedassets.

1.10ForeignCurrencyTransactions

Foreign currency transactions are recorded at exchangerate prevailing on the date of transaction/realisation.Current assets/liabilities are restated at rates prevailingat the year end and resultant exchange difference arerecognised in the Statement of Profit and Loss. In caseofforwardexchangecontracts,thepremiumordiscountarising at the inception of such contracts is amortisedover the life of the contract as well as the exchangedifference on such contracts i.e., differences between

43


theexchangeratesatthereporting/settlementdateandtheexchangerateonthedateofinception/lastreportingdate, is recognised in the Statement of Profit & Loss.Non-monetary items denominated in foreign currencyarevaluedattheexchangerateprevailingonthedateoftransaction.

1.11DeferredTax

In accordance with Accounting Standard-22 ‘Taxeson Income, deferred tax is recognised, subject toconsiderationofprudence,beingthedifferencebetweenaccountingandtaxableincomethatoriginateinoneyearandarecapableofreversalinsubsequentyear.

1.12ImpairmentofAssets

Ateachbalancesheetdate,theCompanyassesseswhetherthere is any indication that anassetmaybe impaired. If

any such indication exists, the Company estimates therecoverableamount.Ifthecarryingamountoftheassetsexceeds its recoverable amount, an impairment loss isrecognisedintheStatementofProfitandLosstotheextentthecarryingamountexceedstherecoverableamount.

1.13Provisions, Contingent Liability and ContingentAssets

TheCompanycreatesaprovisionwhenthereisapresentobligationasaresultofpasteventthatprobablyrequiresanoutflowofresourcesandareliableestimatecanbemadeof the amount of obligation. A disclosure of contingentliability ismadewhenthere isapossibleobligationorapresentobligationthatwillprobablynotrequireoutflowofresourcesorwhereareliableestimateoftheobligationcan not bemade. Contingent Assets neither recognisednordisclosedinthefinancialstatement.

(` Lakhs)

2012-13 2011-12

2. SHARE CAPITAL

AuthorisedShares

1,00,000(PreviousYear:1,00,000)Sharesof`100each 100.00 100.00

7,00,00,000(PreviousYear:7,00,00,000)Sharesof`2each 1,400.00 1,400.00

1,500.00 1,500.00

IssuedShares

6,36,31,805(PreviousYear6,36,31,805)OrdinarySharesof`2each 1,272.64 1,272.64

Subscribed&paidupshares

5,69,00,220(PreviousYear5,69,00,220)OrdinarySharesof`2each,fullypaidup 1,138.00 1,138.00

Add:ShareForfeitedAccount 0.50 0.50

TotalSubscribed&PaidupShareCapital 1,138.50 1,138.50

a) Reconciliationofthenumberofsharesoutstandingatthebeginningandattheendofthereportingperiod

31stMarch2013 31stMarch2012

NoofShares(inlakhs)

(inlakhs`) NoofShares(inlakhs)

(inlakhs`)

OrdinarySharesoutstandingatthebeginningoftheyear 569.00 1,138.00 569.00 1,138.00

OrdinarySharesissuedduringtheyear - - - -

OrdinarySharesboughtbackduringtheyear - - - -

OrdinarySharesoutstandingattheendoftheyear 569.00 1,138.00 569.00 1,138.00

44


b) Terms/rightsattachedtoordinaryshares

TheCompanyhas issuedonlyoneclassofordinaryshareshavingaparvalueof`2/-pershare. Eachholderofordinaryshares isentitledtoonevotepershare.TheCompanydeclaresandpaysdividendsinIndianrupees.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

Duringtheyearended31stMarch2013,theamountofinterimdividendpersharedistributiontoordinaryshareholdersis`2.50andfinaldividendpersharerecognisedfordistributiontoordinaryshareholderis`1.50(Previousyearfinaldividendwas:`2/-pershare).

Ineventofliquidationofthecompany,theholdersofordinaryshareswillbeentitledtoreceiveremainingassetsofthecompany,afterdistributionofallpreferentialamounts.

Thedistributionwillbeinproportiontothenumberofordinarysharesheldbytheshareholders.

c) Detailsofshareholdersholdingmorethan5%sharesintheCompany

S. No. NameoftheShreholders Asat31stMarch2013 Asat31stMarch2012

No.ofSharesheld(InLakhs)

%ofHolding No.ofSharesheld(InLakhs)

%ofHolding

1 MriduHariDalmia(C/oMHDalmiaParivarTrust) 122.56 21.54% 116.87 20.54%

2 DalmiaCement(Bharat)Limited 258.15 45.37% 258.15 45.37%

3 DhartiInvestmentsandHoldingsLimited 35.06 6.16% 35.06 6.16%

d) Aggregate number of bonus shares issued and shares bought back during the period of five years immediately preceding thereportingdate:Nil.

Inrespectofshares issuedforconsiderationotherthancash,1,23,52,500ordinarysharesof`2/- eachfullypaidupwereallotedduringtheyear2007-08totheshareholdersoferstwhileDalmiaCement(Meghalaya)Limitedpursuanttoaschemeofarrangementformerger.

45


(` Lakhs)

2012-13 2011-12

3. RESERVES AND SURPLUSCapitalReserveBalanceasperthelastFinancialStatements 165.06 162.06Add:IPRBenefitreceivedduringtheyear(PYCapitalsubisidy) 576.84 3.00ClosingBalance 741.90 165.06SecuritiesPremiumReserveBalanceasperthelastFinancialStatements 19,600.00 19,600.00DebentureRedemptionReserveBalanceasperthelastFinancialStatements 1,402.68 1129.03Add:TransferfromSurplusbalance 123.67 273.65ClosingBalance 1,526.35 1,402.68GeneralReserveBalanceasperthelastFinancialStatements 48,425.87 47,225.87Add:TransferfromSurplusbalance 12,000.00 1,200.00ClosingBalance 60,425.87 48,425.87Surplus/(Deficit)BalanceasperthelastFinancialStatements 19,570.91 19,186.17Add:ProfitfortheyearaspertheStatementofProfitandLoss 15,638.59 3,181.01Less:Appropriations

ProposedDividend(Pershare`1.50/-(PreviousYear`2/-)) 853.50 1,138.01Dividenddistributiontaxonproposeddividend 145.05 184.61InterimDividend(Pershare`2.50/-) 1,422.51 - Dividenddistributiontaxoninterimdividend 230.77 - TransfertoDebentureRedemptionReserve 123.67 273.65TransfertoGeneralReserve 12,000.00 1,200.00TotalAppropriations 14,775.50 2,796.27

ClosingBalance 20,434.00 19,570.91Total 1,02,728.12 89,164.52

NonCurrent Current

2012-13 2011-12 2012-13 2011-12

4. LONG TERM BORROWINGSSecured1)RedeemableNon-ConvertibleDebentures

[email protected]% 1,100.00 1,100.00 - - (Redeemableduring2014-15to2016-17)

[email protected]% 6,000.00 6,000.00 - - (Redeemableduring2014-15to2016-17)

[email protected]% - - - 500.00(Redeemableduring2012-13)

7,100.00 7,100.00 - 500.00Less:Shownunderothercurrentliabilites - - (500.00)

(Refernoteno9) 7,100.00 7,100.00 - -

Thedebenturesaresecuredbywayoffirstparipassuchargeoverfixedassets(presentandfuture)ofCementDivisionoftheCompanyexceptthosetoSyndicateBankareadditionalysecuredbywayoffirstpari-passuchargeonFixedAssetsofRefractoryDivisionoftheCompany.

46


(` Lakhs)NonCurrent Current

2012-13 2011-12 2012-13 2011-122)TermLoans

FromBanksStateBankofIndia# 4,255.49 5,219.49 964.00 712.00(Repayablein32quarterlyinstallmentsfromDec,10)StateBankofIndia# 6,393.08 - 1,420.00 - (Repayablein24quarterlyinstallmentsfromDec,12)StateBankofIndia# 1,300.00 - - - (Repayablein31quarterlyinstallmentsfromJune,15)PunjabNationalBank# - 5,207.08 - 712.00(Repayablein32quarterlyinstallmentsfromDec,10)ExportImportBankofIndia# 1,872.04 2,552.78 680.74 680.74(Repayablein27quarterlyinstallmentsfromJune,10)ExportImportBankofIndia(ForeignCurrencyLoan)# 2,382.29 3,050.28 866.29 813.41(Repayablein27quarterlyinstallmentsfromJune,10)AxisBankLimited# 1,500.00 3,499.99 2,000.00 2,000.00(Repayablein20quarterlyinstallmentsfromMar,10)UnitedBankofIndia$ 2,500.04 3,333.36 833.98 833.32(Repayablein24quarterlyinstallmentsfromApr,11)UnitedBankofIndia$ 6,062.45 7,274.97 1,212.52 1,212.52(Repayablein32quarterlyinstallmentsfromApr,11)

FromOthersInternationalFinanceCorporation@ 9,470.78 12,627.70 3,156.92 3,156.92(Repayablein13halfyearlyinstallmentsfromOct,10)PTCIndiaFinancialServicesLimited# - 2,867.50 - 370.00(Repayablein32quarterlyinstallmentsfromJan,11)

35,736.17 45,633.15 11,134.45 10,490.91Less:Shownunderothercurrentliabilites - - (11,134.45) (10,490.91)

(Refernoteno9) 35,736.17 45,633.15 - -

#SecuredbyFirstparipassuchargebywayofmortgageandhypothecationoverallimmovablepropertiesandmoveablefixedassetsofCementDivision,(bothpresentandfuture)andfurthersecuredbysecondparipasuchargeonallcurrentassetsoftheCompany.$SecuredbyFirstchargeonfixedassetsoftheCementDivisionofCompany,bothpresentandfuturetobesharedparipassuwiththeprovidersoftheotherdebtandexistinglenders,furthersecuredbywayofsecondparipasuchargeoncurrentassetsofCementDivision.@SecuredbyFirst rankingmortgageonall immovable&movable,present&futureassetsrelatedtotheCementDivision (excludingCurrentAssets)tobesharedparipassuwithotherlendersinrespectofotherdebtsandexistingsecuredlenderstotheCementDivisioninrespectoftheexistingdebt.

NonCurrent# Current2012-13 2011-12 2012-13 2011-12

Unsecured

PublicDeposits

-RelatedParties(Refernoteno28.10(b1e)) - 15.00 15.00 35.00

-Others 422.97 496.53 421.22 725.14

422.97 511.53 436.22 760.14

Less:Shownunderothercurrentliabilites - - (436.22) (760.14)

(Refernoteno9) 422.97 511.53 - -

#(Repayablein2014-15&2015-16)

GrandTotal 43,259.14 53,244.68 11,570.67 11,751.05

Less:ShownunderothercurrentLiabilities - - (11,570.67) (11,751.05)

43,259.14 53,244.68 - -

47


(` Lakhs)

2012-13 2011-12

5. DEFERRED TAX LIABILITIES (NET)Liabilities:

Depreciation 14,173.06 13,885.06Assets:

DifferenceofvalueofStocku/s145AoftheIncomeTaxAct,1961 342.73 229.65Expensesallowableincomputingtaxableincomeonpaymentbasis 250.00 192.87Exchangelossonloanforcapitalexpenditure 219.79 155.45UnabsorbeddepreciationunderIncomeTaxAct,1961 - 913.97ProvisionforDoubtfulDebts&obsolescence 408.30 346.32

1,220.82 1838.26NetLiability 12,952.24 12,046.80

6. OTHER LONG TERM LIABILITIESTradePayables(Duetomicro&smallenterprises-Nil(PY-Nil)) 3160.25 1,927.40Accruedinterestonpublicdeposits 19.74 55.93

3,179.99 1,983.33

7. SHORT TERMS BORROWINGSSecuredLoansrepayableondemand

CashCreditsfromBanks* 13,040.49 7,782.02OtherLoansandadvances

Buyer'sCreditfromBanks$ 11,175.46 - UnsecuredPublicDeposits

-OtherthanRelatedParties 428.43 174.9224,644.38 7,956.94

*Workingcapitalfacilities(fundbased&nonfundbasedlimits)aresecuredbyfirstparipassuchargeoverstocks,stores,rawmaterials,inventories,workinprogress,finishedgoodsandalsobookdebts,billsandmoneysreceivableoftheCompanybywayofhypothecation.ThesefacilitiesarefurthersecuredbysecondchargeoverthefixedassetsoftheCementDivisionoftheCompany.

$Buyerscreditissecuredbysubservientchargesonmoveablefixedassetsofcementdivisionofthecompany.

8. TRADE PAYABLES Micro&SmallEnterprises 94.88 48.73Others 16,002.45 10,993.56

16,097.33 11,042.29

DisclosureasperSection22of“TheMicro,SmallandMediumEnterprisesDevelopmentAct2006”:Particulars Asat

31stMarch,2013

Asat31stMarch,

2012i) Theprincipalamountandtheinterestduethereonremainingunpaidtoanysupplier

PrincipalAmount - Interestthereon - -

ii) TheamountofinterestpaidbythebuyerintermsofSection16,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointedday

0.20 27.54

iii) Theamountofinterestdueandpayablefortheperiod(wheretheprincipalhasbeenpaidbutinterestundertheMSMEDAct,2006notpaid)

0.01 0.18

iv) Theamountofinterestaccruedandremainingunpaid(Sincepaid) 0.25 0.20v) Theamountoffurtherinterestdueandpayableeveninthesucceedingyear,untilsuchdate

whentheinterestduesasaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceasadeductibleexpenditureundersection23oftheMSMEDAct,2006.

0.06 -

48


(` Lakhs)

2012-13 2011-129. OtherCurrentLiabilities

Currentmaturitiesoflong-termdebts(Refernoteno4) 11,570.67 11,751.05Interestaccruedbutnotdueonborrowings 1,048.17 1,182.00Unpaiddividends# 97.99 74.83Unpaidmatureddepositsandinterestaccruedthereon# 18.78 21.84OnCapitalAccount 3,376.43 1,949.72SecurityDeposits 8,193.22 6,330.07Advancepaymentsfromcustomers 3,379.69 2,628.82Otherpayables

-Statutorydues 2,112.09 1,112.60-Directorscommission 37.40 26.10-Recoveriesfromemployeesonbehalfofothers 53.59 43.99

29,888.03 25,121.02#Therearenoamountdue&outstandingtobecreditedtotheInvestorEducation&ProtectionFund

10. ShorttermprovisionsEmployeebenefits

Leaveencashment(unfunded) 328.18 291.00 Superannuation(funded) 18.86 15.23

OthersExchangefluctuation-forwardcontracts 1.44 2.59 Proposeddividend 853.50 1,138.01Taxonproposeddividend 145.05 184.61

1,347.03 1,631.44

11. FIXED ASSETS (` Lakhs)

GrossBlock Depreciation/Amortization NetBlockFixedAssets Asat

01.04.2012Additions Disposals/

AdjustmentsAsat

31.03.2013Up to

31.03.2012For the

yearOn

disposalsUpto

31.03.2013Asat

31.03.2013Asat

31.03.2012a TangibleAssets

Land 621.81 0.00 - 621.81 - - - - 621.81 621.81Landunderlease 1,792.26 0.00 - 1,792.26 24.84 18.27 - 43.11 1,749.15 1767.42Buildings 9,549.41 533.46 1.01 10,081.86 3,368.10 494.25 - 3,862.35 6,219.51 6,181.31PlantandEquipment 1,62,346.50 12,004.49 252.62 1,74,098.37 69,493.19 14,404.76 232.76 83,665.19 90,433.18 92,853.31Plant&Equipment underlease

574.06 - - 574.06 390.11 27.26 - 417.37 156.69 183.95

FurnitureandFixtures 415.11 116.40 0.00 531.51 227.12 61.59 0.00 288.71 242.80 187.99Vehicles 3,510.17 1529.65 0.00 5,039.82 2,528.41 521.16 0.00 3,049.57 1,990.25 ,981.76Officeequipments 1,577.03 400.49 11.61 1,965.91 1065.27 205.11 8.83 1,261.55 704.36 511.76RailwayLine 4,597.86 0.00 - 4,597.86 1,643.73 410.92 - 2,054.65 2,543.21 2,954.13LiveStock 10.40 1.26 - 11.66 - - - - 11.66 10.40Total 1,84,994.61 14,585.75 265.24 1,99,315.12 78,740.77 16,143.32 241.59 94,642.50 1,04,672.62 106,253.84

b IntangibleAssetsComputersoftware 287.88 418.36 - 706.24 184.50 65.81 - 250.31 455.93 103.38Total 287.88 418.36 - 706.24 184.50 65.81 - 250.31 455.93 103.38Totala&b 1,85,282.49 15,004.11 265.24 2,00,021.36 78,925.27 16,209.13 241.59 94,892.81 1,05,128.55 106,357.22PreviousYear 1,63,543.47 21,987.41 248.39 1,85,282.49 63,698.20 15,289.55 62.48 78,925.27 106,357.22 99,845.27

c CapitalWorkInProgress 13,639.46 14,818.42Total - - - - - - - - 13,639.46 14,818.42

d IntangibleassetsunderDevelopment

31.06 39.60

Total - - - - - - - 31.06 39.60Notes 1 GrossBlockincludesamountaddedin1985onrevaluationofLand`132.31lakhs,Buildings`1,200.64lakhsandPlantandMachinery`1,917.55lakhsas

carriedoutbyanexternalindependentvaluer.Sincethevaluationwascarriedoutlongbacktheindicesappliedbythevaluerisnotavaliable.

2 AdditionstoFixedAssetsandCapitalwork-in-progressincludenetborrowingcostof`28.22lakhscapitalisedduringtheyear(PreviousYear`1,519.36lakhs).

3 AdditiontoCapitalWIPincludesPreoperativeexpenses/incomeasdetailedunderNote28.19.

4 Therehasbeennoimpairmentlossonassetsduringtheyear.

5 Leaseholdlandincludes154.43acresoflandatMedinipurforwhichconveyancedeedispendingexecution.

6 Depreciationof`51.74LakhsforMedinipurunithasbeenchargedtoPreoperativeexpenses.

49


FaceValue

No.ofShares/Units Amount(In`Lakhs)

2012-13 2011-12 2012-13 2011-1212. NON CURRENT INVESTMENTS

TRADE-Unquoted-AtCostEquityInstruments-FullypaidupSubsidiary(w.e.f01.01.2013)

OCLGlobalLtd(FaceValueinUSD)(PYAssociate) 1 1,00,000 50,000 4,145.18 22.40 JointVenture

Radhikapur(West)CoalMiningPvtLtd(Note28.7) 10 73,48,000 29,39,200 734.80 293.92 Others

FirstCapitalIndiaLimited 6 166 166 0.01 0.01 IndiaInformationTechnologyLimited(`10/-) 10 1 1 - -

PreferenceShares-FullypaidupSubsidiary(w.e.f01.01.2013)

OCLGlobalLtd(FaceValueinUSD)*(PYAssociate) 1 27,30,000 13,65,000 1,330.42 587.51 (5%non-cumulativeredeemable)

Total(A) 6,210.41 903.84 *Redeemableattheoptionofthecompanyintranchesofthecompany’schoicebutnotlaterthan10yearsfromthedateofissue.

NONTRADE-Unquoted(Unlessotherwisestated) AtCostEquityInstruments-FullypaidupOthers

CrescentFinstockLimited 10 1,400 1,400 - - GujaratCompositeLimited 10 16 16 - - IspatProfilesIndiaLimited(`75/-) 10 50 50 - - BagalkotUdyogLimited 1 100 100 0.01 0.01OrissaIndustriesLimited 10 73,450 73,450 1.40 1.40TheScindiaSteamNavigationCompanyLtd 20 504 504 0.06 0.06TheTravancoreCementsLimited 10 100 100 0.01 0.01DigvijayFinleaseLimited 10 25 25 - - IndoFlogatesLimited 10 100 100 0.01 0.01BagalkotCement&IndustriesLtd 10 1 1 - - KanoriaSugar&GeneralMfg.CoLtd(`183/-) 10 25 25 - - Magnesite&MineralsLimited 10 100 100 0.01 0.01UshaIspatLimited 10 100 100 0.01 0.01OrindExportsLimited(`201/-) 10 100 100 - -

DebenturesorBondsNon-convertibleSecured-Fullypaidup

8%-IndianChamberofCommerce 100 12 12 0.01 0.01Non-convertibleSecured-Partlypaidup

8%-IndianChamberofCommerce-Fractional(`50/-)

25 2 2 - -

UnitsofMutualFunds-Quoted,FullyPaidupBirlaSunLifeFixedTermPlanSeriesFCGrowth - - 198,00,000 - 1,980.00ICICIPrudentialFMPSeries63-370Days - - 200,00,000 - 2,000.00PlanDCumulative

Others-FullyPaidupCo-operativeSociety 100 50 50 0.05 0.05 PropertyRightsinHolidayResort 4 4 0.41 0.41

Total(B) 1.98 3,981.98Total(A+B) 6,212.39 4,885.82QuotedInvestments - 3,980.00UnquotedInvestments 6,212.39 905.82

6,212.39 4,885.82Marketvalueofquotedinvestments - 3,983.01Note:Costbelow`400/-aregiveninbrackets

50


(` Lakhs)

NonCurrent Current

2012-13 2011-12 2012-13 2011-12

13. LOANS AND ADVANCES

CapitalAdvances

Secured-consideredgood 2,161.41 81.54 - -

Unsecured-consideredgood 1,509.65 262.94 - -

Unsecured-considereddoubtful 6.36 - - -

Less:Provisionfordoubtfuladvances 6.36 - - -

SecurityDeposits

Unsecured,consideredgood 62.35 83.10 2,425.18 2,443.03

Loansandadvancestorelatedparties

Unsecured,consideredgood (Refernoteno28.10b(2g)&(3j))

- - 23.07 1,041.00

Otherloansandadvances

Secured,consideredgood -

Loantoemployees 7.59 1.68 2.64 0.97

Advancesrecoverableincashorinkind - - - 0.89

Unsecured,consideredgood

Balanceswithgovt.authorites - - 2,827.21 2,108.33

Advanceforallotmentofshares - 440.88 - -

Loan/Advancesrecoverableincash/kind 97.90 27.26 3,798.23 2,852.44

Loans/advancestoemployees* 10.11 2.15 57.69 63.61

Matcreditentitlement - - - 494.65

Advanceincometax(netofprovisionfortaxation) - - 3,567.96 2,485.24

Unsecured-considereddoubtful - - 52.86 67.47

Less:Provisionfordoubtfuladvances 52.86 67.47

3,849.01 899.55 12,701.98 11,490.16

Loanduebydirectororotherofficersetc

*OtherofficersoftheCompany 19.10 1.00

14. OTHER NON CURRENT ASSETS

Unsecured,consideredgood

Accruedinterest 27.02 45.99

27.02 45.99

51


FaceValue

No.ofShares/Units Amount(In`Lakhs)

2012-13 2011-12 2012-13 2011-12

15. CURRENT INVESTMENTSNONTRADE-Unquoted-AtCostor NAVwhicheverislowerUnitsofMutualFunds-FullyPaidup

UTITreasuryAdvantageFund-InstPlan(DDP)-Reinvest

8,84,476.41 5,38,222.53 8,846.66 5,383.38

BirlaSunlifeSavingFund-Instl.-DD-Reinvest 44,80,144.13 31,39,893.16 4,484.39 3,142.03BirlaSunlifeDynamicBondFund-RetailPlan-MonthlyDivd-Reivest

- 8,95,754.95 - 94.03

BirlaSunLifeFixedTermPlanSeriesFCGrowth 198,00,000.00 - 1,980.00 - BSLDynamicBondFund-Retail-Growth 94,89,165.05 - 1,799.99 - IDFCSSIF-STPlanC-FortnightlyDividend - 107,59,075.85 - 1,087.58IDFCMoneyManagerFund-TreasuryPlan-SuperInstPlanC-DD

- 191,55,720.34 - 515.86

ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend

33,74,944.15 18,67,878.22 3,568.50 1,975.00

ICICIPrudentialInstShorttermPlan-DivdReinvestmentFortnight

6,09,915.66 5,85,653.08 75.81 71.63

ICICIPrudentialReguShorttermPlan-DivdReinvestmentFortnig

14,983.64 - 1.80 -

ICICIPrudentialFMPSeries63-370Days 200,00,000.00 - 2,000.00 - ICICI-ShorttermPlan-RegularGrowth 38,87,997.76 - 900.00 - SBI-SHF-UltraShorttermFund-InstitutionalPlan-DD - 47,300.79 - 473.29 SBI-SHF-UltraShorttermFund-RegularPlan-DD 2,05,892.44 - 2,061.57 - TempletonIndiaShorttermincomeretailplan 35,256.23 - 800.00 - Total 26,518.72 12,742.80

NetAssetValue 27,069.20 12,744.93

(` Lakhs)

2012-13 2011-12

16. INVENTORIES(ReferNote1.6formodeofvaluation)

RawMaterialsandcomponents

-InStock 6,411.56 7,036.23

-InTransit 649.22 2,805.92

Work-in-progress

-InStock 5,663.68 1,252.78

-InTransit 116.14 -

Finishedgoods

-InStock 8,583.85 3,213.49

-InTransit 628.43 56.43

Stock-in-trade

-InStock 282.01 380.24

Stores,spares,fuel&packingmaterials

-InStock 12,688.25 10,859.56

-InTransit 202.77 392.02

LooseTools

-InStock 28.34 28.50

Total 35,254.25 26,025.17

52


(` Lakhs)

2012-13 2011-12

17. TRADE RECEIVABLES

Outstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment

Secured,consideredgood 116.69 2.14

Unsecured,consideredgood 1,186.19 746.58

Unsecured,considereddoubtful 903.07 699.79

2,205.95 1,448.51

Less:Provisionfordoubtfuldebts 903.07 699.79

1302.88 748.72

Others

Secured,consideredgood 4,159.13 2,084.62

Unsecured,consideredgood 12,033.02 9,235.44

16,192.15 11,320.06

Total 17,495.03 12,068.78

18. CASH&BANKBALANCES

Cash&CashEquivalents

Balancewithbanks:

-Incurrentaccounts 5,603.16 2,468.03

-Indepositwithoriginalmaturityoflessthan3months 7,500.00 4,800.00

-Inunpaiddividendaccount 97.99 74.83

Cheques,draftsonhand 190.26 583.49

Fundsintransit 180.25

Cashonhand 21.96 25.07

Stampsonhand 0.04 0.04

OtherBankBalances

Depositswithoriginalmaturityofmorethan12months - 5,000.00

DepositsEarmarked(CY-againstPublicDeposits&NOC)*(PY-AgstPublicDeposit) 611.17 150.00

14,024.58 13,281.71*Includesdepositof`450Lakhslienmarkedtowardsobligations

19. OtherCurrentAssets

Interestaccruedbutnotdue 188.44 626.39

Claims&otherreceivable

Consideredgood 152.72 44.10

Considereddoubtful 7.33 11.36

Assetsheldforsale(atlowerofnetbookvalueandnetrealisablevalue) 11.23 0.01

Others 0.32 3.80

360.04 685.66

Less:Setofffromprovisionfordoubtfuldebts 7.33 11.36

352.71 674.30

53


(` Lakhs)

2012-13 2011-12

20. RevenuefromOperations(Refernoteno1.7onrevenuerecognition)

SaleofProducts

Cement 1,68,374.37 1,31,032.40

Refractories 27,219.22 29,746.34

Others-Clinker 1,009.48 -

Others-Dolomite 73.74 63.24

SelfConsumptionofProducts

Cement 381.89 262.67

Refractories 958.34 1,419.40

SaleofTradedProducts

Slag,Coal&Gypsum 3509.38 44.69

Refractories 4,466.67 1,974.46

SaleofServices

MarketingServices 450.94 544.80

BusinessAuxiliaryServices 15.40 11.97

OtherOperatingRevenue 845.59 1,187.26

2,07,305.02 1,66,287.23

Less:ExciseDuty 25,576.13 19,243.73

1,81,728.89 1,47,043.50

21. OTHER INCOME

InterestReceipts-Ondeposits,taxrefundsandfromcustomersetc. 266.63 914.02

Profitonsaleofassets - 4.20

MTMgainoninterestderivative - 103.58

Dividendsfrominvestmentsinmutualfunds-current 1,283.33 1,424.77Profitonsaleofcurrentinvestments 1.58 20.50

OtherNonOperatingIncome 979.86 848.07

2,531.40 3,315.14

22. COST OF MATERIALS CONSUMED

i) Limestone(OwnQuarry)-Seefootnote(b)below 9,744.14 8,384.25

ii) Slag 15,568.79 11,755.17

iii) PurchasedClinker 2,686.44 9,233.92

iv) Others# 16,687.14 17,273.68

44,686.51 46,647.02

54


(` Lakhs)

2012-13 2011-12

Notes:a) #Noneoftheseindividuallyaccountformorethan10%ofthetotalcostofmaterialconsumedb) Expensesincludedinthecostofrawmaterials

SalariesandWages 504.57 472.79ContributiontoProvidentandOtherFunds 61.43 48.44WorkmenandStaffWelfareExpenses 54.84 39.22PaymenttoContractorsforServices 1,809.42 1,864.84PowerandFuel 1,085.64 516.95ConsumptionofStoresandSpareParts 1,720.59 1,459.96RepairstoMachinery 1,510.11 1,232.68RepairstoBuildings 19.06 8.56RoyaltyandCess 1,828.00 1,216.44Rent 4.91 20.25RatesandTaxes 79.33 42.76Insurance 24.51 30.48CommissiontoOtherAgents - 5.45Depreciation 2,314.00 2,529.04SundrySales/Income (36.08) (186.03)

10,980.33 9,301.83

23. PURCHASE OF GOODS TRADEDSlag,Coal&Gypsum 3,454.03 44.69Refractories 4,280.63 2,323.12

7,734.66 2,367.81

24. CHANGESININVENTORIESOFFINISHEDGOODS,WORKINPROGESS&STOCKINTRADE

StocksatthebeginningoftheyearFinishedGoods 3,269.92 7,037.68TradedGoods 380.24 62.72WorkinProgress 1,252.78 2,239.61

4,902.94 9,340.01Less:Stocksattheendoftheyear(Seefootnotebelow)

FinishedGoods 9,212.28 3,269.92TradedGoods 282.01 380.24WorkinProgress 5,779.82 1,252.78

15,274.11 4,902.94FootNote:- (10,371.17) 4,437.07StockinTradea) FinishedGoods

Cement 4,718.77 187.89Refractories 4,493.51 3,082.03

9,212.28 3,269.92b) TradedGoods

Refractories 282.01 380.24c) WorkinProgress

Cement 4,567.11 168.01Refractories 1,212.71 1,084.77

5,779.82 1,252.78

55


(` Lakhs)

2012-13 2011-12

25. EMPLOYEE BENEFITS EXPENSE(Refernote1.8onemployeebenefits)Salaries,Wages,BonusandGratuity 8,036.33 6,440.96ContributiontoProvidentandOtherFunds 864.23 532.90ContributiontoProvidentandOtherFunds-Contractorsemployees 262.57 229.80WorkmenandStaffWelfareExpenses 496.08 404.74

9,659.21 7,608.40

26. FINANCE COSTSInterestexpense

OnTermLoans,DebenturesandDeposits 7,044.39 7,063.45ToBanksandOthers 251.92 109.38

OtherBorrowingCost 246.39 171.14Applicablenetgain/lossonforeigncurrencytransactionsandtranslation 161.40 149.53

7,704.10 7,493.50

27. OTHER EXPENSESConsumptionofStores,SparepartsandPackingmaterials 9,074.10 7,807.43RepairsandMaintenance

Machinery 5,798.88 5,067.27Buildings 632.21 699.84 Others 150.56 109.56

PaymentstoContractorsforServices 4,245.27 3,870.77RoyaltyandCess 14.54 19.80 Rent 676.56 531.13 RatesandTaxes 940.80 418.08 ExcisedutyonStockandOthers 1,098.00 (574.12)Freight,TransportationandHandling 20,447.33 11,622.26CommissiontoSellingAgents 583.92 605.73 Rebates,DiscountsandAllowances 366.64 693.19 Insurance 274.78 250.06 Travelling 509.18 408.53 AdvertisementandPublicity 1,929.48 1,016.46Legal 238.25 192.36 Directors'TravellingandConveyance 15.18 13.74 Directors'Fees 10.30 7.50 CommssiontoNonExecutiveDirectors 41.55 29.00 CharityandDonations 487.70 458.68 LossonsaleofCurrentInvestments - 9.97 AssetsWrittenoffandLossonSaleofAssets 10.89 22.65 LossduetoExchangefluctuationotherthanfinancecost(Net) 92.60 392.60 ProvisionforDoubtfulDebts 191.01 74.29 BadDebtsWrittenOff - 15.12 PaymentstoOutsideAgencies 2,655.35 1,062.91MiscellaneousExpenses 3,493.74 2,161.56

53,978.82 36,986.37

56


(` Lakhs)

2012-13 2011-1228. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS28.1 Contingentliabilitiesnotprovidedforinrespectof:

(i) ClaimsagainsttheCompanynotacknowledgedasdebtsa) DisputedliabilityrelatingtoESIContributiononovertimewagesandotherallowances 55.95 72.59b) DisputedliabilityrelatingtoPFContributiononcertainallowances 71.22 94.97c) DisputedliabilityrelatingtopaymentofpremiumonforestlandusedforMiningpurpose 154.13 154.13d) ForPollutionControlBoard,Orissa 8.86 11.82e) DisputedclaimforsupplyofRefractories 156.30 156.30f) DisputedliabilitiesrelatingtoRailwayforenhancedGodownrentandoverloadingpenal

charges175.91 123.19

g) DisputedSalesTaxdemand(includinginterest&penalty)-matterunderappeal 629.00 707.07h) DisputedEntryTaxdemand-matterunderappeal 149.66 122.73i) DisputedExcisematters 4,265.49 3,980.67j) DisputedcounterclaiminaArbitrationmatter. - 468.26k) Disputedliabilitiesrelatingtopurchaseof

Electricity358.92 -

l) Others 363.04 221.186,388.48 6,112.91

(ii) OthermoniesforwhichtheCompanyiscontingentlyliable:a) Disputedliabilityrelatingtolabourmatters-pendinginCourts 4.57 4.57b) DisputedliabilityrelatingtoLandmatters-pendinginCourts 39.51 62.01c) Others 78.50 78.50Total 122.58 145.08

(iii) DisputedliabilityinrespectofIncomeTaxdemands 302.88 855.46

Inrespectofitemsabove,futurecashoutflowsinrespectofcontingentliabilitiesaredeterminableonlyonreceiptofjudgements/decisionspendingatvariousforums/authorities.

(iv) a) GuaranteegiventoBanksforloanfacilitiesonbehalfofOCLGlobalLtd(CY-Nil)aSubsidiary(w.e.f01.01.2013).(PreviousYearUSD15.88Lakhs)

- 818.30

b) SecurityprovidedtobankinrespectofloangranteduptoUSD3.50million(USD12.56Lakhs)(PYNil) toOCLGlobal Limited, a Subsidiary, (w.e.f 01.01.2013) - first pari passu chargeoncurrentassetsofthecompanyandfurthersecuredbysecondparipassuchargeonfixedassetsofcementdivisionofthecompany,loanoutstandingamountasonthebalancesheedate

689.13 -

c) GuaranteegiventoBanksonbehalfofOCLChinaLtd(USD11.84Lakhs)(PYUSD15.00Lakhs)(astepdownSubsidiaryw.e.f01.01.2013)

649.84 772.95

d) GuaranteegiventoBanksonbehalfofRadhikapur(West)CoalMiningPrivateLimitedagainstwhichcounterguaranteeof`561.00LakhshasbeenreceivedfromOCLIron&SteelLtd

1,076.00 1,076.00

28.2 Estimatedamountofcontractsremainingtobeexecutedoncapitalaccount(netofadvances)andnotprovidedfor

15,644.97 1,184.80

28.3 RemunerationtoAuditorsandExpensesAuditors

Audit Fee 13.00 13.00TaxAuditFee 2.50 2.50

InOtherCapacitiesCertificationofQuarterlyLimitedReview 4.20 4.20CertificationofotherStatements 2.85 2.50ExpensesincludingboardingandLodging 8.65 6.54

Cost AuditorAudit Fee 0.70 0.60ExpensesincludingboardingandLodging 0.50 0.18

57


28.4 IntheopinionoftheBoardandtothebestoftheirknowledgeandbelief,thevaluationonrealisationofcurrentassets,loansandadvancesintheordinarycourseofbusinesswouldnotbelessthantheamountatwhichtheyarestatedintheBalanceSheet.

28.5 TheSupremeCourtofIndiainApril,1996,upheldthevalidityofJutePackingMaterials(CompulsoryuseinPackingCommodities)Act,1987.TheCompanyhasbeenlegallyadvisedthattheActisapplicabletoitonlywitheffectfromOctober,1996.UndertheAct,CementManufacturersarerequiredtouseJutePackagingMaterialforsupplyordistributionupto50%oftheirtotalproduction.TheCalcuttaHighCourthasgrantedstayagainstshowcausenoticereceivedbytheCompanyfromtheJuteCommissioner.TheTransferPetitionfiledbytheUnionofIndiabeforetheHon’bleSupremeCourtwasdismissedbytheHon’blecourtduetodefaultandasaresultofwhichthependingwritoftheCompanywillbeheardbytheHon’bleKolkataHighCourtonmerits.Theamountthatmaybecomepayable,ispresentlynotascertainable.However,theGovernmenthasnotnotifiedthecompulsorypackingofCementinjutepackingmaterialsfortheperiodeffectivefrom1stJuly,1997.

28.6 Duringtheyearanamountof`25.00 lakhs (PY10.00 lakhs)hasbeendonatedto“RashtriyaAhinsaManch”aregisteredPoliticalpartyunder section29AofRepresentationof thePeopleAct,1951having its registeredofficeat132/1,MahatmaGandhiRoad,Kolkata-700007.

28.7 InrespectoflicencegrantedforcaptiveminingBlockatRadhikapurmines,aJointVenturecompanyRadhikapur(West)CoalMiningPrivateLimitedhasbeenincorporatedon29thMarch2010inwhichtheCompany’s interest jointlywithOCLIron&SteelLimited(OISL)is14.696%.TheCompanyhasinvested`734.80Lacs(PY`293.92lakhs)inequitysharesoftheJVCompanywhichincludes`383.35Lacs(PY`153.34lakhs)beingproportionatevalueofsharestobetransferedtoOISLafterthereceiptofapprovalfromtheMinistryofCoal,GovtofIndiaandotherJointVenture

ThedetailsoftheCompany’sinterestinJ.Vareasunder:

(` Lakhs)

AsatMarch31, 2013

(Unaudited)

AsatMarch31,2012(Audited)

EQUITY&LIABILITIESCurrentLiabilities

Short-termborrowings - 57.63 Tradepayables 0.85 0.20 OthercurrentLiabilities 0.01 0.03

Total 0.86 57.86 ASSETSNon-currentAssetsTangibleassets 0.25 0.29 Pre-OperativeExpenses 66.51 73.24 Longtermloansandadvances 149.80 149.80 Currentassets

Cashandbankbalances 128.72 179.13 Shorttermloansandadvances 7.03 6.85

Total 352.31 409.31 Thisispre-OperatingperiodoftheJointVenturecompany.Alltheexpenditureincurredtillcommencementofcommercialproductionisclassifiedas‘MinesDevelopment&Pre-OperativeExpenses’pendingcapitalizationunderpre-operativeexpenses.

28.8 Bankbalancesincludes`45,794/-(PY`45,944/-)lyinginacurrentaccountwithanationalisedbank,tobeoperatedjointlybytheauthorisedsignatoriesoftheCompanyandOISLinrespectofCoalBlockOperationsasmentionedinnote28.7above.

28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONT...)

58


(` Lakhs)

Cement Refractory Others Unallocable Total

28.9 SegmentDisclosure(AS-17)

SegmentoperatingRevenue 172,893.23 32,210.57 - 15.40 205,119.20

External (131,077.09) (32,328.84) - (11.97) (163,417.90)

4.35 421.39 - - 425.74

Inter-Segment (7.01) (778.01) - - (785.02)

SegmentResult

Profit/(Loss)beforetaxandinterest 31,310.17 1,881.24 - -2,843.28 30,348.13

(10,063.19) (2,329.04) - (-1101.02) (11,291.21)

Less:Interest 7,704.10 7,704.10

(7,493.50) (7,493.50)

ProfitbeforeTaxation 22,644.03

(3,797.71)

ProvisionforTaxation-Current 5,900.00 5,900.00

(500.00) (500.00)

Less:MATCreditentitlement - -

(-494.65) (-494.65)

-Deferred 905.44 905.44

(611.35) (611.35)

-Taxrelatingtoearlieryears 200.00 200.00

ProfitafterTaxation 15,638.59

(3,181.01)

OtherInformation

SegmentAssets 172,428.74 26,084.28 36,721.74 235,234.76

(155,528.01) (26,605.10) (21,196.41) (203,329.52)

SegmentLiabilities 31,425.04 5,143.92 94,799.18 131,368.14

(20,853.73) (4,504.67) (87,668.10) (113,026.50)

CapitalExpenditureincludingcapitalWIP 13,290.84 274.60 251.17 13,816.61

(9,597.39) (91.79) (12.09) (9,701.27)

Depreciation 15,560.07 606.52 42.54 16,209.13

(14,635.72) (635.05) (18.78) (15,289.55)

Noncashexpensesotherthandepreciation:

ProvisionforLeaveencashment 14.59 16.08 6.52 37.19

(43.43) (8.34) (7.16) (58.93)

Figuresinbracketsareinrespectofpreviousyear.

Note:a) Asperpracticeconsistentlyfollowed,intersegmenttransfersforcapitaljobsrecognisedatcostandforotherjobsatestimated

realisablevalue.b) Businesssegmentisconsideredasprimarysegmentandthereisonlyonegeographicalsegment.


59


28.10 RelatedPartyDisclosures(AS-18)

a) Relatedpartiesandtheirrelationship:

i) Key management personnel :Shri M H Dalmia, Shri R H Dalmia, Shri.Gaurav Dalmia(Managing Director), Shri D.D.Atal(WholetimeDirector)

Relatives :Shri.A.H.Dalmia,Shri.V.H.Dalmia,ShriY.HDalmia,Smt.AbhaDalmia,Smt.PadmaDalmia,Smt.ShripriyaDalmiaThirani,Smt.AnuradhaJatia,Smt.KanupriyaSomany,Smt.SharmilaDalmia,Shri.PuneetYaduDalmia,Smt.KiranAtal

ii)Subsidiary:OCLGlobalLimited(w.e.f01.01.2013)

iii)StepdownSubsidiary:OCLChinaLimited(w.e.f01.01.2013)

iv)Enterprisesoverwhichkeymanagementpersonnelareabletoexercisesignificantinfluence:HariMachinesLimited,DalmiaBharatSevaTrust,DapelInvestmentsPvt.Ltd,DalmiaInstituteofScientific&Research(DISIR),DaltonInternationalLtd,AgricoLtd.,DalmiaCement(Bharat)Ltd.,LandmarkPropertyDevelopmentCo.Ltd,ShreeNatrajCeramic&ChemicalIndustriesLtd,ChirawaNavyuvakTrust,AstirPropertiesPvt.Ltd.,DalmiaShikshaPratishthan,LandmarkLandholdingsPvt.Ltd,DalmiaBharatSugar&IndustriesLtd,DalmiaBharatLimited(FormalyDalmiaBharatEnterpriseLimited),DCBPowerVenturesLtd,CalcomCementIndiaLtd,DebikaySystemsLimited,KiranResourcesPvt.Ltd

b) Transactionswithaboveinordinarycourseofbusiness: (` Lakhs)

2012-13 2011-12

1) Transactionswithpartiesreferredin(1)above:

a)Remuneration/Pension 526.89 455.63

b)InterestExpense 2.41 80.07

c)Servicereceived 7.00 10.73

d)RentPaid 28.04 27.52

e)Payableattheyearend 22.36 60.03


a)Purchaseofgoodsandfixedassets 3,035.17 1,350.94

b)Saleofgoodsandfixedassets - 350.70

c)Servicerendered 196.94 140.29

d)Interestincome - 1.05

e)GuaranteeProvided(USD12.56Lakhs)(PreviousyearUSD15.88Lakhs) 689.13 818.30

f)Receivableattheyearend 0.48 242.53

g)Payableattheyearend 211.24 143.92


a)Purchaseofgoods 161.57 2,406.19

b)Purchaseoffixedassets 47.51 -

c)Saleofgoodsandfixedassets 2,087.67 817.24

d)Servicerendered 26.93 5.06

e)Servicereceived 2,548.76 252.37

f)Intercorporatedepositgiven/(receivedback) (1000.00) 1,000.00

g)InterestIncome 38.36 88.16

h)InterestExpense - 6.09

i)Advancegivenandreceived 4.85 -

j)RentPaid 29.64 26.84

k)Receivableattheyearend 449.93 1,763.20

l)Payableattheyearend 2,400.59 56.77


60


(` Lakhs)

2012-13 2011-12

C) DisclosureofMaterialtransactionswithRelatedParties

Remuneration

Syt.M.H.Dalmia 22.37 22.41

Syt.R.H.Dalmia 149.63 102.63

Shri.D.D.Atal 145.29 157.95

Shri.GauravDalmia 152.07 102.90

Purchaseoffixedassets

HariMachinesLtd. 47.51 -

DCBPowerVenturesLtd - 181.13

DalmiaCement(Bharat)Ltd. - 28.06

Purchaseofgoods

DalmiaCement(Bharat)Ltd. 11.32 1,455.80

DalmiaBharatSugar&IndustriesLtd 45.97 452.53

DalmiaBharatLtd 104.23 281.18

Saleofgoodsandfixedassets

CalcomCementIndiaLimited 1,183.55 -

DaltonInternational.Ltd 812.02 716.76

HariMachinesLtd. 61.70 52.32

Servicerendered


Servicereceived


DalmiaCement(Bharat)Ltd. 36.59 5.29

DalmiaBharatLtd 2,282.10 -

DISIR 116.74 103.22


AstirPropertiesPvt.Ltd.(Rent) 28.04 26.84

Intercorporatedepositgiven/(receivedback)

CalcomCementIndiaLimited (1000.00) 1,000.00

InterestIncome

CalcomCementIndiaLimited 38.36 88.16

Receivableattheyearend

DaltonInternational.Ltd - 716.76


CalcomCementIndiaLimited 387.81 1,000.00

Payableattheyearend


DalmiaBharatLtd 2,282.10 11.71

DalmiaCement(Bharat)Ltd. 17.25 7.54

28.11 Earningpershare(EPS)AS-20

Profitaftertax(In`Lakhs) 15,638.59 3,181.01

WeightedAverageNo.ofequitysharesof`2eachason31.03.2013

Basic&Diluted(NoinLakhs) 569.00 569.00

EPS(`)

Basic&Diluted 27.48 5.59


61


% 2012-13`Lakhs

% 2011-12`Lakhs

28.12 Valueofimportedandindigenous

RawMaterialsandSparepartsConsumed

i) RawMaterials

Imported 19.74 8,819.74 16.17 7,543.60

Others 80.26 35,866.77 83.83 39,103.41

ii) Spareparts

Imported 21.70 890.94 20.66 817.01

Others 78.30 3,215.15 79.34 3,136.92

28.13 Imports(C.I.F.Value)

i) RawMaterials 17,252.87 6,914.56

ii) ComponentsandSpareparts 4701.14 865.86

iii) CapitalGoods 149.21 185.40

28.14 Expenditureinforeigncurrency:

i) Royaltyandknowhowfees 2.64 18.93

ii) InterestonForeignCurrencyLoans - 31.89

iii) Professional/Consultationfee 145.07 73.44

iv) Commission 147.36 263.92

v) HighSeaPurchase 51.58 2,996.44

vi) OtherMatters 130.17 78.93

28.15 EarningsinForeignExchange

i) Goodsexported(F.O.B.Value) 3,515.15 4,122.52

ii) SaleofgoodsonHighSea 7.97 -

iii) Servicecharges 130.37 133.26

iv) Sundryreceipts 0.40 -

v) UKVatrefund 0.23 0.32

28.16 TheCompanyhasnotpaiddividendsinforeigncurrencyduringtheyearinrespectofsharesheldbynon-residents.Theamountpayabletonon-residentshareholdershasbeenpaid totheirmandateebanks.Theamountofdividendsopaid tononresidentshareholdersduringtheyearisasfollows:

2012-13 2011-12

Interim

A) No.ofnon-residentshareholders 188 197 189

B) No.ofequitysharesheldbythem 27,67,097 27,79,644 30,33,569

C) Amountofdividendpaid(In`Lakhs) 69.17 55.81 121.34

D) Yeartowhichthedividendrelates 2012-13 2011-12 2010-11


62


(` Lakhs)

% 2012-13 2011-12

28.17 ForeignCurrencyExposure(AmountInLakhs)

i) Hedged- ForwardContractsforimports(USD) USD - 2.87

TermLoan USD 23.68 3.95

ii) NotHedged-Debtors USD 3.33 7.12

Euro 1.77 17.40

Yen - 0.08

GBP - 9.06

Creditors USD 8.11 0.11

Euro 1.91 2.43

JPY 6.67 7.32

GBP 0.30 0.04

Cash&BankBalance USD 0.01 0.01

GBP(CYGBP330&PY38.2)

- -

Euro 0.01 0.01

RMB 0.03 0.01

JPY(CY&PYJPY220)

- -

Kwacha 0.30 -

TermLoan USD 35.52 71.03

PCFCLOAN USD 5.13 2.46

EURO 3.43 2.34

GBP - 8.41

ForeignCurrencyLoanavailedunderBuyers’Credit USD 203.63 -

28.18 EmployeeBenefits-AS15(Revised)

a) TheCompanyhas determined the liability for Employeebenefits as atMarch31, 2013 in accordancewith revisedAccountingStandard15issuedbyICAI-Employeedefinedbenefits.

b) FollowinginformationarebasedonreportofActuary.DefinedbenefitplansasatMarch31,2013

(` Lakhs)

2012-13 2011-12

Gratuity(Funded)

LeaveEncashment(Unfunded)

Gratuity(Funded)


A) Break-upofexpenses

1 CurrentServiceCost 131.03 199.13 111.60 53.86

2 Interestcost 91.71 18.50 87.62 14.90

3 Expectedreturnonplanassets 95.09 - 91.08 -

4 NetActuarial(gain)/lossrecongisedduringtheyear 139.58 (60.83) (46.21) 81.68

5 Totalexpense 267.23 156.80 61.93 150.44


63


(` Lakhs)

2012-13 2011-12

Gratuity(Funded)


Gratuity(Funded)


B) Actualreturnonplanassets

1 Expectedreturnonplanassets 95.09 91.08

2 Actuarialgain/(loss)onplanassets 21.28 (17.10)

3 Actualreturnonplanassets 116.37 73.98

C) Reconciliationofobligationandfairvalueofassets

1 Presentvalueoftheobligation 1,488.05 328.18 1,188.28 291.00

2 Fairvalueofplanassets 1,488.53 - 1,188.69

3 Fundedstatus[surplus/(deficit)] 0.48 (328.18) 0.41 (291.00)

D) ChangeinpresentvalueoftheobligationduringtheyearendedMarch31,2013

1 PresentvalueofobligationasatApril1,2012 1,188.28 291.00 1,138.17 232.08

2 CurrentServiceCost 131.03 199.13 111.60 53.86

3 Interestcost 91.71 18.49 87.62 14.90

4 Benefitspaid (83.83) (119.61) (85.80) (91.52)

5 Actuarial(gain)/lossonplanassets 160.86 (60.83) (63.31) 81.68

6 PresentvalueofobligationasatMarch31,2013 1,488.05 328.18 1,188.28 291.00

(`Lakhs)

2012-13 2011-12

E) ChangeinAssetsduringtheyearendedMarch31,2013

1 FairvalueofplanassetsasatApril1,2012 1,188.69 1,138.51

2 Expectedreturnonplanassets 95.09 91.08

3 Contributionmade 267.30 62.00

4 Benefitspaid (83.83) (85.80)

5 Actuarialgain/(loss)onplanassets 21.28 (17.10)

6 FairvalueofplanassetsasatMarch31,2013 1,488.53 1,188.69

F) Themajorcategoryofplanassetsasapercentageoftotalplan

Gratuity:76%(PY93%)investedwithCentralGovt/Stategovt/StateGovt.Securities/PublicsectorbondsFixedDepositwithPSUBanks

LeaveEncashment:Unfunded

g) ActuarialAssumptions

1 Discountrate 8.00% 8.00%

2 Expectedrateofreturnonplanassets 8.00% 8.00%

3 Mortality LIC 1994-96 LIC1994-96

4 Salaryescalation 5.00% 5.00%

c) Gratuityisadministeredbyanapprovedgratuityfundtrust

d) Amountrecognisedasanexpenseinrespectofdefinedbenefitsplanasunder:

1 ContributiontoGratuityFund 267.30 62.00

2 Gratuitypaiddirectly 21.81 23.03

3 Leaveencashment 156.79 150.45

445.90 235.48


64


(` Lakhs)

2012-13 2011-12

e) DefinedContributionplan:

ContributiontoDefinedContributionPlan,recognisedasexpensefortheyearasunder:

1 Employer'scontributiontoGovernmentProvidentFund 612.51 553.34

2 Employer'scontributiontoSuperannuationFund 60.56 60.46

3 Farewellgifttoretiredemployees 2.12 1.48

4 Medicalinsurancepremiumtoretiredemployees 10.77 9.39

685.96 624.67

28.19 CapitalWork-In-ProgressatOCLBengalCementWorks/Medinipur (PYCaptivePowerPlant,Rajgangpur&OCLBengalCementWorks/Medinipur)includesthefollowingexpenses/income

Salary&Wages 199.89 5.64

Rent 8.77 0.95

Rates&Taxes 0.80 -

Insurance 41.57 3.45

FinanceCharges 111.82 -

Others 105.71 231.40

28.20 Research&DevelopmentExpenses

a) TheCompanyhasin-houseR&DCentre,approvedbytheDepartmentofScientificandIndustrialResearch(DISIR),MinistryofScientific&Technology,GovtofIndia.Thedetailsofrevenue/capitalexpenditureincurredbythesaidR&DCentreduringtheyearisasunder:-

i) RevenueExpenditurechargedtoProfit&LossAccount

SalaryandotherBenefits 159.02 121.01

RawMaterial&Stores 24.99 28.28

Others 47.58 26.81

Total 231.59 176.10

ii) CapitalexpenditureshownunderFixedassetsschedule 0.55 0.16

GrandTotal 232.14 176.26

28.21 TheMinistryofCorporateAffairs,GovernmentofIndia,videGeneralCircularNo.2and3dated8thFebruary2011and21stFebruary2011 respectively has granted a general exemption from compliancewith section212of theCompaniesAct, 1956, subject tofulfillmentofconditionsstipulatedinthecircular.TheCompanyhassatisfiedtheconditionsstipulatedinthecircularandhenceisentitledtotheexemption.Necessary informationrelatingtothesubsidiarieshasbeen included intheConsolidatedFinancialStatements

28.22 Previousyearfigureshavebeenregroupedwherenecessarytocorrespondwithcurrentyearfigures.


OnbehalfoftheBoard






R.RaghuramanPartner

MNo.81350


D. N. DavarDirector


65


INDEPENDENTAUDITORS’REPORTTotheBoardofDirectorsofOCLIndiaLimited

We have audited the accompanying consolidated financialstatementsofOCLIndiaLimited(“theCompany”)anditssubsidiariesandJointVenture,whichcompriseconsolidatedBalanceSheetasat31stMarch2013andtheconsolidatedStatementofProfitandLossfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Consolidated FinancialStatements

Management is responsible for the preparation of theseconsolidated financial statements that give a true and fair viewof the consolidated financial position and consolidated financialperformance of the Company in accordance with accountingprinciples generally accepted in India; this includes the design,implementation and maintenance of internal control relevant tothe preparation and presentation of the consolidated financialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Our responsibility is toexpress anopinionon these consolidatedfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewiththeStandardsonAuditingissuedbytheInstituteofCharteredAccountantsofIndia.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheauditto obtain reasonable assurance about whether the consolidatedfinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabout the amounts and disclosures in the consolidated financialstatements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of materialmisstatement of the consolidated financial statements, whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsiders internal control relevant to the Company’s preparationand presentation of the consolidated financial statements thatgive a true and fair view in order to design audit proceduresthat are appropriate in the circumstances.Anaudit also includesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebymanagement,aswellasevaluating theoverallpresentationof theconsolidatedfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion and to the best of our information and accordingtotheexplanationsgiventousandbasedontheconsiderationofthereportsoftheotherauditorsonthefinancialstatementsofthesubsidiariesasnotedbelow,theconsolidatedfinancialstatementsgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

(a) inthecaseoftheconsolidatedBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2013;and

(b) inthecaseoftheconsolidatedStatementofProfitandLoss,oftheprofitfortheyearendedonthatdate;

EmphasisofMatter

WedrawattentiontoNoteno.1(ix)regardingnon-preparationofConsolidatedCash FlowStatement for the stated reason therein.Ouropinionisnotqualifiedinrespectofthismatter.

OtherMatter

Wedid not audit the financial statements of all subsidiaries andJointVenturewhosefinancialstatementsreflectthetotalassetsof`1628.52 lakhsasatMarch31,2013, total revenuesof`6908.28 lakhsfortheyearthenended.Thesefinancialstatementshavebeenaudited/ unaudited by other auditors whose reports have beenfurnishedtousbytheManagement,andouropinionisbasedsolelyonthereportsoftheotherauditors.Ouropinionisnotqualifiedinrespectofthismatter.

ForV.SankarAiyar&Co.CharteredAccountants

ICAIFirmRegn.No.109208W

R.RaghuramanPlace:NewDelhi PartnerDated:29.05.2013 MembershipNo.081350

66


(` Lakhs)

Note No. 2012-13I. EQUITY&LIABILITIES

Shareholders'FundsShareCapital 2 1,138.50 ReservesandSurplus 3 105,729.74

106,868.24

MinorityInterest 325.44

NonCurrentLiabilitiesLong-termborrowings 4 44,612.55 Deferredtaxliabilities(Net) 5 13,014.52 Otherlongtermliabilities 6 3,179.99 Long-termprovisions -

60,807.06

CurrentLiabilitiesShort-termborrowings 7 25,355.02 Tradepayables 8 17,306.51 Othercurrentliabilities 9 31,234.30 Short-termprovisions 10 1,348.56

75,244.39 Total 243,245.13

II. ASSETSNon-currentAssets

Fixedassets 11Tangibleassets 109,490.93 Intangibleassets 2,799.90 Capitalwork-in-progress 14,183.13 Intangibleassetsunderdevelopment 31.06

MineDevelopment&Pre-OperativeExpense 12 66.51 Non-currentinvestments 13 385.34 Long-termloansandadvances 14 3,998.81 Othernon-currentassets 15 27.02

130,982.70 CurrentAssets

Currentinvestments 16 26,518.72 Inventories 17 37,390.24 Tradereceivables 18 20,672.35 Cash&bankbalances 19 14,524.21 Short-termloansandadvances 14 12,721.65 Othercurrentassets 20 435.26

112,262.43 Total 243,245.13


CONSOLIDATEDBALANCESHEETAsat31stMarch,2013


OnbehalfoftheBoard






R.RaghuramanPartner

MNo.81350


D. N. DavarDirector

67


(` Lakhs)

Note No. 2012-13

INCOMERevenuefromoperations 21 184,864.06 Otherincome 22 2,537.71

187,401.77 EXPENDITURE

Costofmaterialsconsumed 23 46,022.28 Purchasesofstockintrade 24 8,122.94 Freight,clearing&handlingonownclinker 2,658.00 Changesininventoriesoffinishedgoods&workinprogress& StockinTrade

25 (9,897.22)

Employeebenefitsexpense 26 9,706.61 Powerandfuel 31,831.50 Financecosts 27 7,767.56 Depreciation&amortizationexpense 13,945.03 Otherexpenses 28 54,292.92

164,449.62 PROFIT BEFORE TAXATION 22,952.15 TaxExpense-CurrentTax 5,900.00

-TaxforPreviousyears 200.00 -Deferred 905.44 PROFIT/(LOSS)FORTHEYEARAFTERTAX(BeforeadjustmentforMinorityInterest)

15,946.71

Less:ShareofProfit/(Loss)transferredto/(from)MinorityInterest 12.52 PROFITFORTHEYEARAFTER(AfteradjustmentforMinorityInterest) 15,934.19 EARNINGPEREQUITYSHARE(FaceValueof`2/-each)(a) Basic(`) 28.00 (b) Diluted(`) 28.00


STATEMENTOFCONSOLIDATEDPROFITANDLOSS Fortheyearended31stMarch,2013


OnbehalfoftheBoard






R.RaghuramanPartner

MNo.81350


D. N. DavarDirector

68


NOTESTOTHEBALANCESHEETANDSTATEMENTOFPROFITANDLOSS

1 SIGNIFICANT ACCOUNTING POLICIES

1.1 PrinciplesofConsolidation The Consolidated Financial Statement relate to OCL India

Limited(thecompany)anditssubsidiarycompaniesandjointventure. The consolidated financial statements have beenpreparedonthefollowingbasis:

i) The Consolidated Financial Statements have beenprepared in compliance with the Accounting Standard21-“ConsolidatedFinancialStatements”,and‘AccountingStandard 27 - “Financial Reporting of Interests in JointVentures” notified under Companies (AccountingStandard) Rules,2006. These financial statements relateto OCL India Limited and its subsidiary companiesincorporatedinforeigncountries&JointVentureinIndia.The Companies considered for consolidated financialstatementsare:-

a) OCLGLOBALLIMITED(IncorporatedinMauritius)

b) OCL CHINA LIMITED (Step Down Subsidiary -IncorporatedinChina)

c) Radhikapur(West)coalminingpvtLimited-Interests(14.696%)outofwhichonly7.029%ispermanentinnaturewhich isconsidered inconsolidatedfinancialstatements and for balance share (7.667%) ofinvestment isaccountedasperAS -13“AccountingforInvestments”

ii) ThefinancialstatementsoftheCompanyanditssubsidiarycompaniesarecombinedonaline-by-linebasisbyaddingtogetherthebookvaluesoflikeitemsofassets,liabilities,income and expenses, after eliminating all significantintra-groupbalancesandintra-grouptransactionsandalsounrealizedprofitsorlossesinaccordancewithAccountingStandard(AS)21-“ConsolidatedFinancialStatements”

iii) Interest in Joint Ventures have been accounted byusing the proportionate consolidation method as perAccountingStandard27-“FinancialReportingofInterestinJointVentures”.Intra-groupbalances,transactionsandunrealizedprofitsor losseshavebeeneliminated to theextentoftheCompany’sproportionateshare.

iv) The difference between the cost to the company of itsinvestment in the subsidiaries and Joint Venture,overitsproportionate share in thenetassetsof the investeecompany as at the date of acquisition of shares isrecognised in the financial statements as Goodwill orCapitalReserveasthecasemaybe.

v) Minority Interest’s share of net profit of consolidatedsubsidiariesfortheyearhasbeenidentifiedandadjustedagainsttheincomeofthegroupinordertoarriveatthenetincomeattributabletoshareholdersoftheCompany.Minority Interest’s share of net assets of consolidatedsubsidiariesisidentifiedandpresentedintheconsolidatedbalancesheet separate from liabilitiesand theequityoftheCompany’sshareholders.

vi) As far aspossible, the consolidatedfinancial statementsare prepared using uniform accounting policies for liketransactions and other events in similar circumstancesandarepresentedinthesamemannerastheCompany’sstandalonefinancialstatements.Differencesinacccountingpolicieshavebeendisclosedseperately.

vii) Incaseofforeignsubsidiaries,beingnon-integralforeignoperations,revenueitemsareconsolidatedattheaveragerateprevailingduringtheyear.Allassetsandliablitiesareconvertedattherateprevailingattheendoftheyear.Anyexchangedifferencearisingonconsolidationisrecognisedintheexchangefluctuationreserve.

viii) There being no consolidated financial statement for thepreviousyear, therearenopreviousyearfigures. In theabsence of previous year figure consolidated cash flowstatementhasnotbeenprepared.

ix) The financial statements of the group entities used forthepurposeof consolidationaredrawnup to the samereporting date as that of the company i.e. Year endedMarch31,2013.

1.2 FixedAssetsincludingintangibleAssets Fixedassetsarestatedatcostlessaccumulateddepreciation.

Cost comprises the purchase price and any attributable costofbringingtheassettoitsworkingconditionforits intendeduse.Land,Buildings,PlantandMachineryrelatingtoCementand RefractoryWorks acquired/installed upto 31.12.81wererevaluedasat31.12.85.Allotherfixedassetsareshownatcost(netofcenvat).Borrowingcostsattributabletotheacquisitionofqualifyingassetsand allsignificantcosts incidental totheacquisition of assets are capitalised. Intangible assets arerecorded at considerationpaid for acquisitionof such assetsandarecarriedatcost lessaccumulatedamortisation.CapitalWorkinProgress&IntangilbeAssetsunderdevelopmentareshownatcost.

69


1.3 DepreciationandAmortisation

i) DepreciationonFixedAssets(excepttotheextentstatedinpara(ii)to(iii)below)isprovidedusingtheReducingBalanceMethodandhasbeencalculated in themannerandattheratesspecifiedinScheduleXIVtotheCompaniesAct,1956.

ii) Depreciation on Plant andMachinery added in Cement& Refractory after 31.12.81 is provided on straight linemethod.

iii) Inrespectofastepdownsubsidiarycompany(OCLChinaLimited),depreciationisprovidedonstraightlinemethodaspertheexpectedusefullivesandexpected‘netsalvagevalue (original valueor 5%of BookValue) of the assetsestimatedbythemanagement,whichareasfollows:

Nameof the Assets

Depre-ciationLife

ResidualRate

AnnualDepreciation

Rateestimatedbythe

management

RatesasperScheduleXIVtotheCompaniesAct,1956

HouseandBuilding

20-40 5% 4.75%-2.375%

1.63%-3.34%

MachineryandMechanicEquipment

10 5% 9% 5.28%

MeansofTransportation

4-5 5% 23.75%-19% 9.75%

ElectronicEquipment

3-5 5% 31.67%-19% 4.75%-5.28%

iv) An intangible assets ismeasured at cost and amortisedsoastoreflectthepatterninwhichtheassetseconomicbenefitareconsumed.Theusefullifehasbeenestimatedas3-5yearsincaseofcomputersoftware.

v) In respect of Stepdown subsidiary company (OCL ChinaLimited) the expected life of the intangibles has beenestimatedbythemanagementastenyears.

1.4 RevenueRecognitionandAccountingforSales&Services

Revenue from domestic sale of goods is recognised whensignificantrisksandrewardsaretransferredtothecustomers.Export Sales are accounted for on the basis of date of Billof Lading. Sales are net of trade discount and sales tax butinclusiveofexciseduty.Bonusorpenaltylinkedtooperatingefficiency of products, where applicable, is accounted for

upon crystalization. Income from services are accounted forwhen becomes due. Interest income is recognised on timeproportionatebasis.Dividend income isaccounted for,whentherighttoreceivethesameisestablished.

IncaseofStepdownSubsidiaryCompany(OCLChinaLimited)incomefromservicesisrecognisedintheaccountingperiodinwhichitisreceived.

1.5 Pre-Operative Expenses (Mine Development Expenses &OtherPre-OperativeExpenses.)

The Pre-Operative Expenses relate to the Joint VentureCompany, Radhikapur (West) Coal Mining Pvt. Ltd. The JVCompany and the venturers have been allotted coal blockby GOI, Ministry of Coal. All the expenditure incurred tillcommencement of commercial production is classified as‘Mines Development & Pre-Operative Expenses’ pendingcapitalizationunderpre-operativeexpenses.

i) MineDevelopment Expenses–Direct: The cost relatableto acquisition of exploration right and Bank GuaranteeexpensesforGovernmentroyaltyassurancearegroupedunderthishead.

ii) MineDevelopmentExpenses–Direct–InterestReceipts:The Company was called upon by the Banker to makemargin money in the form of Fixed eposit for issue ofBankGuaranteeonbehalfoftheCompanytoGovernmentof India for assurance of royalty payment of one yearproduction upon commencement of operation. Theinterest receipt on such fixed deposit is considered asreduction from cost of bank guarantee charges, underminesdevelopmentexpenses–direct.

iii) MineDevelopmentExpenses–IndirectandAdministrative:Theexpensesarecapitalizedastheoperationsareyettocommence.The interest receiptondepositoutof sparefundsisreducedfromtheadministrativeexpenses.

iv) The company is following “Full Costmethod” ,wherebyall acquisition, exploration and developmental cost arekept as work in progress. Upon start of operation, thedepletion/ depreciationmethod/modewill be decided,basedonreservequantityofcoalandotherfactors.

1.6 Othersignificantaccountingpolicies

These are set out under “Significant Accounting Policies” asgiveninthecompany’sseparatefinancialstatements.

70


(` Lakhs)

2012-13

2. SHARE CAPITAL

AuthorisedShares

1,00,000Sharesof`100each 100.00

7,00,00,000Sharesof`2each 1,400.00

1,500.00

IssuedShares

6,36,31,805OrdinarySharesof`2each 1,272.64

Subscribed&paidupshares

5,69,00,220OrdinarySharesof`2each,fullypaidup 1,138.00

Add:SharesForfeitedAccount 0.50

TotalSubscribed&PaidupShareCapital 1,138.50

a) Reconciliationofthenumberofsharesoutstandingatthebeginningandattheendofthereportingperiod

31stMarch2013

NoofShares(inlakhs)

(inlakhs`)

OrdinarySharesoutstandingatthebeginningoftheyear 569.00 1,138.00

OrdinarySharesissuedduringtheyear - -

OrdinarySharesboughtbackduringtheyear - -

OrdinarySharesoutstandingattheendoftheyear 569.00 1,138.00

b) Terms/rightsattachedtoordinaryshares

TheCompanyhasissuedonlyoneclassofordinaryshareshavingaparvalueof`2/-pershare.Eachholderofordinarysharesisentitledtoonevotepershare.TheCompanydeclaresandpaysdividendsinIndianrupees.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

Duringtheyearended31stMarch2013,theamountofinterimdividendpersharedistributiontoordinaryshareholdersis`2.50/-andfinaldividendpersharerecognisedfordistributiontoordinaryshareholderis`1.50/-

Ineventofliquidationofthecompany,theholdersofordinaryshareswillbeentitledtoreceiveremainingassetsofthecompany,afterdistributionofallpreferentialamounts.

Thedistributionwillbeinproportiontothenumberofordinarysharesheldbytheshareholders.

Detailsofshareholdersholdingmorethan5%sharesintheCompany

c) Detailsofshareholdersholdingmorethan5%sharesintheCompany

31stMarch2013

S. No.

NameoftheShareholders NoofShares(inlakhs)

(%ofHolding)

1 MriduHariDalmia(C/oMHDalmiaParivarTrust) 122.56 21.54%

2 DalmiaCement(Bharat)Limited 258.15 45.37%

3 DhartiInvestmentsandHoldingsLimited 35.06 6.16%

d) Aggregatenumberofbonusshares issuedandsharesboughtbackduringtheperiodoffiveyears immediatelyprecedingthereportingdate:Nil.

Inrespectofsharesissuedforconsiderationotherthancash,1,23,52,500ordinarysharesof`2/-eachfullypaidupwhereallotedduringtheyear2007-08totheshareholdersoferstwhileDalmiaCement(Meghalaya)Limitedpursuanttoaschemeofarrangementformerger.

71


(` Lakhs)

2012-13

3. RESERVES AND SURPLUSCapitalReserveOpeningBalance 153.06 Add:IPRBenefitreceivedduringtheyear 575.45 Add:MinorityShareofLoss 0.14 ClosingBalance 728.65 SecuritiesPremiumReserveOpeningBalance 19,600.00 ForeignCurrencyTranslationReserveOpeningBalance - Add:Arisedduringtheyear 1,023.01 ClosingBalance 1,023.01 DebentureRedemptionReserveOpeningBalance 1,402.68 Add:TransferfromSurplusbalance 123.67 ClosingBalance 1,526.35 GeneralReserveOpeningBalance 48,485.34 Add:TransferfromSurplusbalance 12,000.00 ClosingBalance 60,485.34 Surplus/(Deficit)OpeningBalance 21,207.70 Add:ProfitfortheyearaspertheStatementofProfitandLoss 15,946.71 Less:Appropriations -

ProposedDividend(Pershare`1.50/-) 853.50 Dividenddistributiontaxonproposeddividend 145.05 InterimDividend(Pershare`2.50/-) 1,422.51 Dividenddistributiontaxoninterimdividend 230.77 TransfertoDebentureRedemptionReserve 123.67 TransfertoGeneralReserve 12,000.00 MinorityShareofProfit 12.52 TotalAppropriations 14,788.02

ClosingBalance 22,366.39 Total 105,729.74

2012-13NonCurrent Current

4. LONG TERM BORROWINGSSecured1 RedeemableNon-ConvertibleDebentures

[email protected]% 1,100.00 - (Redeemableduring2014-15to2016-17)[email protected]% 6,000.00 - (Redeemableduring2014-15to2016-17)

7,100.00 -

Thedebenturesaresecuredbywayoffirstparipassuchargeoverfixedassets(presentandfuture)ofCementDivisionoftheCompanyexceptthosetoSyndicateBankareadditionalysecuredbywayoffirstpari-passuchargeonFixedAssetsofRefractoryDivisionoftheCompany.

72


(` Lakhs)

2012-13

NonCurrent Current

2 TermLoans

FromBanks

StateBankofIndia# 4,255.49 964.00

(Repayablein32quarterlyinstallmentsfromDec,10)

StateBankofIndia# 6,393.08 1,420.00

(Repayablein24quarterlyinstallmentsfromDec,12)

StateBankofIndia# 1,300.00 -

(Repayablein31quarterlyinstallmentsfromJune,15)

ExportImportBankofIndia# 1,872.04 680.74


ExportImportBankofIndia(ForeignCurrencyLoan)# 2,382.29 866.29


AxisBankLimited# 1,500.00 2,000.00

(Repayablein20quarterlyinstallmentsfromMar,10)

UnitedBankofIndia$ 2,500.04 833.98

(Repayablein24quarterlyinstallmentsfromApr,11)

UnitedBankofIndia$ 6,062.45 1,212.52

(Repayablein32quarterlyinstallmentsfromApr,11)

StateBankofIndia,SanghaiBranch* - 642.78

(YearlyMaturityandRenewable)

BankofBaroda,DubaiBranch* 804.61 319.80

(RepayableinquarterlyinstalmentstillOctober2016)

StateBankofIndia,MauritiusBranch^ 548.80 -

(RepaybleinTwoinstalmentsof5LacsUSDeachfromSept14)

StateBankofIndia,MauritiusBranch^ - 140.33

(RepayableinquarterlyinstalmentsfromApril2009)

FromOthers

InternationalFinanceCorporation@ 9,470.78 3,156.92

(Repayablein13halfyearlyinstallmentsfromOct,10)

37,089.58 12,237.36

Less:Shownunderothercurrentliabilites - (12,237.36)

(Refernoteno9) 37,089.58 -

#SecuredbyFirstparipassuchargebywayofmortgageandhypothecationoverall immovablepropertiesandmoveablefixedassetsofCementDivision,(bothpresentandfuture)andfurthersecuredbysecondparipasuchargeonallcurrentassetsoftheCompany.

$SecuredbyFirstchargeonfixedassetsoftheCementDivisionofCompany,bothpresentandfuturetobesharedparipassuwiththeprovidersoftheotherdebtandexistinglenders,furthersecuredbywayofsecondparipasuchargeoncurrentassetsofCementDivision.

@SecuredbyFirstrankingmortgageonallimmovable&movable,present&futureassetsrelatedtotheCementDivision(excludingCurrent

Assets)tobesharedparipassuwithotherlendersinrespectofotherdebtsandexistingsecuredlenderstotheCementDivisioninrespectoftheexistingdebt.

*SecuredbybytheguaranteegivenbytheholdingcompanyOCLINDIALIMITED.

^SecuredbythesubservientchargeonthemovableassetsofholdingcompanyOCLINDIALIMITED.

73


(` Lakhs)

2012-13

NonCurrent# Current

Unsecured

PublicDeposits

-RelatedParties(Refernoteno29.9(b1e)) - 15.00

-Others 422.97 421.22

422.97 436.22

Less:Shownunderothercurrentliabilites - (436.22)

(Refernoteno9) 422.97 -

#(Repayablein2014-15&2015-16)

GrandTotal 44,612.55 12,673.58

Less:ShownunderothercurrentLiabilities (12,673.58)

44,612.55 -

5 DEFERRED TAX LIABILITIES (NET)

Liabilities:

Depreciation 14,173.06

ExcessExpenseAllowableincomputingtaxableincomeonaccrualbasis 62.28

14,235.34

Assets:

DifferenceofvalueofStocku/s145AoftheIncomeTaxAct,1961 342.73

Expensesallowableincomputingtaxableincomeonpaymentbasis 250.00

Exchangelossonloanforcapitalexpenditure 219.79

ProvisionforDoubtfulDebts&obsolescence 408.30

1,220.82

NetLiability 13,014.52

6 OTHER LONG TERM LIABILITIES

TradePayables(Duetomicro&smallenterprises-Nil) 3,160.25

Accruedinterestonpublicdeposits 19.74

3,179.99

7 SHORT TERMS BORROWINGS

Secured

a) Loansrepayableondemand

CashCreditsfromBanks* 13,751.13

b) OtherLoansandadvances

Buyer'sCreditfromBanks$ 11,175.46

Unsecured

PublicDeposits

-OtherthanRelatedParties 428.43

25,355.02

*Workingcapital facilities (fundbased&nonfundbased limits)aresecuredbyfirstparipassuchargeoverstocks,stores, rawmaterials,inventories,workinprogress,finishedgoodsandalsobookdebts,billsandmoneysreceivableoftheCompanybywayofhypothecation.ThesefacilitiesarefurthersecuredbysecondchargeoverthefixedassetsoftheCementDivisionoftheCompany.LimitatSBI,Hongkonissecuredbyguranteegivenbyholdingcompany$Buyerscreditissecuredbysubservientchargesonmoveablefixedassetsofcementdivisionofthecompany.

74


(` Lakhs)

2012-13

8 TRADE PAYABLES

Micro&SmallEnterprises 94.88

Others 17,211.63

17,306.51

DisclosureasperSection22of“TheMicro,SmallandMediumEnterprisesDevelopmentAct2006”:

Particulars Asat31st March,2013

i) Theprincipalamountandtheinterestduethereonremainingunpaidtoanysupplier

-PrincipalAmount -

-Interestthereon -

ii) TheamountofinterestpaidbythebuyerintermsofSection16,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointedday

0.20

iii) Theamountofinterestdueandpayablefortheperiod(wheretheprincipalhasbeenpaidbutinterestundertheMSMEDAct,2006notpaid)

0.01

iv) Theamountofinterestaccruedandremainingunpaid 0.25

v) Theamountoffurtherinterestdueandpayableeveninthesucceedingyear,untilsuchdatewhentheinterestduesasaboveareactuallypaid to the small enterprise, for thepurposeofdisallowanceasadeductibleexpenditureundersection23oftheMSMEDAct,2006.

0.06

9 OtherCurrentLiabilities

Currentmaturitiesoflong-termdebts(Refernoteno4) 12,673.58

Interestaccruedbutnotdueonborrowings 1,048.17

Unpaiddividends# 97.99

Unpaidmatureddepositsandinterestaccruedthereon# 18.78

OnCapitalAccount 3,376.43

SecurityDeposits 8,193.22

Advancepaymentsfromcustomers 3,486.08

ProcessingFees/OtherLiabilities 136.96

Statutorydues 2,112.10

Directorscommission 37.40

Recoveriesfromemployeesonbehalfofothers 53.59

31,234.30

#Therearenoamountdue&outstandingtobecreditedtotheInvestorEducation&ProtectionFund

10 Shorttermprovisions

Employeebenefits

Leaveencashment(unfunded) 328.18

Superannuation(funded) 18.86

Others

Exchangefluctuation-forwardcontracts 1.44

Proposeddividend 853.50

Taxonproposeddividend 145.05

Others 1.53

1,348.56

75


11.

CON

SOLI

DAT

ED F

IXED

ASS

ETS

(` Lakhs)

GrossBlock

Dep

reciati

on/Amortizati

onNetBlock

FixedAssets

Ope

ning

Ba

lance

Assetsof

Subsidiarie

s&Jo

int

Venture

Entiti

es

Add

ition

sDispo

sals/

Adjustm

ents

Asat

31.0

3.20

13Ope

ning

Ba

lance

Accum

ulated

Dep

reciati

on

ofSub

sidiaries

&Jo

int

Venture

Entiti

es

Forthe

ye

arO

n disposals

Upto

31.0

3.20

13Asat

31.0

3.20

13Ope

ning

Ba

lance

aTang

ibleAssets

Land

621

.81

- -

- 6

21.8

1 -

- -

- -

621

.81

621

.81

Land

und

erlease

1,792

.26

1,073

.73

- -

2,8

65.9

9 2

4.84

5

5.73

2

3.86

-

104

.43

2,7

61.5

6 1,767

.42

Build

ings

9,549

.41

1,479

.55

533

.46

1.0

1 1

1,56

1.41

3,368

.10

227

.97

511

.62

- 4

,107

.69

7,4

53.7

2 6,181

.31

Plan

tand

Equ

ipmen

t162

,346

.50

3,266

.00

12,00

4.49

2

52.6

2 1

77,3

64.3

7 69,49

3.19

7

30.4

3 14,47

5.13

2

32.7

6 8

4,46

5.99

9

2,89

8.38

92,85

3.31

Plan

t&Equ

ipmen

tun

derlea

se 5

74.0

6 -

- -

574

.06

390

.11

- 2

7.26

-

417

.37

156

.69

183

.95

Furnitu

reand

Fixtures

415

.11

1.4

1 1

16.4

0 -

532

.92

227

.12

0.5

7 6

1.67

-

289

.36

243

.56

187

.99

Vehicles

3,510

.17

118

.01

1,529

.65

- 5

,157

.83

2,528

.41

47.

59

524

.55

- 3

,100

.55

2,0

57.2

8 9

81.7

6 Officeequ

ipmen

ts1,577

.03

67.

14

400

.49

11.

61

2,0

33.0

5 1,065

.27

26.

62

206

.93

8.8

3 1

,289

.99

743

.06

511

.76

Railw

ayLine

4,597

.86

- -

- 4

,597

.86

1,643

.73

- 4

10.9

2 -

2,0

54.6

5 2

,543

.21

2,954

.13

LiveStock

10.

40

- 1

.26

- 1

1.66

-

- -

- -

11.

66

10.

40

Total

184

,994

.61

6,0

05.8

4 1

4,58

5.75

2

65.2

4 2

05,3

20.9

6 7

8,74

0.77

1

,088

.91

16,

241.

94

241

.59

95,

830.

03

109

,490

.93

106

,253

.84

bIntang

ibleAssets

Goo

dwillon

Consolidati

on2,343

.89

2,3

43.8

9 -

2,3

43.8

9 -

Compu

tersoft

ware

287

.88

2.9

5 4

18.3

6 -

709

.19

184

.50

2.7

2 6

5.96

-

253

.18

456

.01

103

.38

Total

287

.88

2.9

5 2

,762

.25

- 3

,053

.08

184

.50

2.7

2 6

5.96

-

253

.18

2,7

99.9

0 1

03.3

8 Totala&b

185

,282

.49

6,0

08.7

9 1

7,34

8.00

2

65.2

4 2

08,3

74.0

4 7

8,92

5.27

1

,091

.63

16,

307.

90

241

.59

96,

083.

21

112

,290

.83

106

,357

.22

cCa

pitalW

orkInProgress

- 5

43.6

7 -

- 5

43.6

7 -

- -

- -

14,

183.

13

14,81

8.42

Total

- 5

43.6

7 -

- 5

43.6

7 -

- -

- -

14,

183.

13

14,

818.

42

dIntang

ibleassetsun

der

Develop

men

t -

- -

- -

- -

- -

- 3

1.06

3

9.60

Total

- -

- -

- -

- -

- -

31.

06

39.

60

Notes

1 GrossBlockin

clud

esamou

ntadd

edin

198

5on

revaluati

onofLan

d`

132.

31 lakh

s,Buildings`1,20

0.64

lakh

san

dPlan

tand

Machine

ry`1,91

7.55

lakh

sascarrie

dou

tbyan

externa

lind

epen

dent

valuer.Sinceth

evaluati

onwascarrie

dou

tlon

gba

ckth

eindicesap

pliedbyth

evaluerisnotavaliable.

2Ad

ditio

nsto

Fixed

Assetsan

dCa

pitalw

ork-in-progressinclud

ene

tborrowingcostof`

28.22lakh

scapitalised

duringtheyear.

3Ad

ditio

ntoCap

italW

IPin

clud

esPreope

rativ

eexpe

nses/incom

easdetailedun

derN

ote29

.14.

4Th

ereha

sbe

ennoim

pairm

entlosson

assetsdu

ringtheyear.

5Leaseho

ldland

includ

es154

.43acresofland

atM

edinipurfo

rwhichcon

veyancede

edispen

ding

executio

n.6

Goo

dwillarisingon

con

solid

ation

issho

wnun

derintan

gibleassets.

7Dep

reciati

onof`

51.74Lakh

sforM

edinipurunit&

0.07Lakh

sofJV

Com

panyhasbee

nchargedtoPreop

erati

veexpen

ses.

8An

amou

ntof`

2.94

lakh

sofprelim

inaryexpe

nseshasbee

nam

ortised

duringtheyear.

76


(` Lakhs)

2012-13

12 MineDevelopment&PREOPERATIVEEXPENSES

MineDevelopment&Pre-OperativeExpenses:

MineDevelopmentDirectExpenses:

GeologicalReportofMiningofCoalBlockas

Interimrecoverablecostofexploration 53.86

FinancecostforIssuingBankGuarantee 20.20

74.06

Less:IntreceivedonFDforissueofBankGuarantee 12.60

Total(A) 61.46

MineDevelopmentAdministrativeExpenses

Auditor'sRemuneration 0.03

BankCharges 0.03

FilingFees 1.78

Travelling&Conveyance 0.50

AdvertisementExpenses 0.21

ApplicationFees 0.34

Depreciation 0.18

Printing&Stationery 0.13

Salary,Bonus,LeaveEncashment&medicalreimbursement 6.98

OfficeRent 0.33

TelecommunicationExpenses 0.05

GeneralExpenses 0.70

Professionalfees 3.45

PreliminaryExpenses 0.44

BooksandPeriodicals(`327/-) -

Chanda&subscription 0.13

Insurancepremium(`65/-) -

CorporateSocialResponsibilityExpenses 0.20

Postage&telegram(`369/-) -

Power&fuel 0.02

Taxihirecharges 0.56

Delegatefees(`334/-) -

Computer&Peripherals(`358/-) -

Rates&Taxes(`499/-) -

SurveyWork 0.49

16.55

Less:InterestreceivedonFixedDeposit 11.46

Less:InterestreceivedfromIncomeTaxDepartment 0.04

Total(B) 5.05

Total(A+B) 66.51

Note:Amountbelow`500/-aregiveninbracket

77


(` Lakhs)

FaceValue No.ofShares/Units

Amount

13 NON CURRENT INVESTMENTS

TRADE-Unquoted-atCost

EquityInstruments-Fullypaidup

JointVenture

Radhikapur(West)CoalMiningPvtLtd(Note29.6) 10 3,835,000 383.35

Others

FirstCapitalIndiaLimited 6 166 0.01

IndiaInformationTechnologyLimited(`10/-) 10 1 -

Total(A) 383.36

NONTRADE-Unquoted(Unlessotherwisestated)

EquityInstruments-Fullypaidup

Others

CrescentFinstockLimited 10 1400 -

GujaratCompositeLimited 10 16 -

IspatProfilesIndiaLimited(`75/-) 10 50 -

BagalkotUdyogLimited 1 100 0.01

OrissaIndustriesLimited 10 73450 1.40

TheScindiaSteamNavigationCompanyLtd 20 504 0.06

TheTravancoreCementsLimited 10 100 0.01

DigvijayFinleaseLimited 10 25 -

IndoFlogatesLimited 10 100 0.01

BagalkotCement&IndustriesLtd 10 1 -

KanoriaSugar&GeneralMfg.CoLtd(`183/-) 10 25 -

Magnesite&MineralsLimited 10 100 0.01

UshaIspatLimited 10 100 0.01

OrindExportsLimited(`201/-) 10 100 -

DebenturesorBonds

Non-convertibleSecured-Fullypaidup

8%-IndianChamberofCommerce 100 12 0.01

Non-convertibleSecured-Partlypaidup

8%-IndianChamberofCommerce-Fractional(`50/-) 25 2 -

Others-FullyPaidup

Co-operativeSociety 100 50 0.05

PropertyRightsinHolidayResort 4 0.41

Total(B) 1.98

Total(A+B) 385.34

QuotedInvestments -

UnquotedInvestments 385.34

385.34

Note:Costbelow`400/-aregiveninbrackets

78


(` Lakhs)

2012-13

NonCurrent Current

14 LOANS AND ADVANCESCapitalAdvancesSecured-consideredgood 2,311.18 - Unsecured-consideredgood 1,509.65 - Unsecured-considereddoubtful 6.36 - Less:Provisionfordoubtfuladvances 6.36 - SecurityDepositsUnsecured,consideredgood 62.38 2,442.69 LoansandadvancestorelatedpartiesUnsecured,consideredgood(Refernoteno29.9b(2(e)&(3k)) - 23.07 OtherloansandadvancesSecured,consideredgood

Loantoemployees 7.59 2.64 Unsecured,consideredgood

Balanceswithgovtauthorites - 2,827.21 Loan/Advancesrecoverableincash/kind 97.90 3,798.23 Loans/advancestoemployees* 10.11 57.69 Advanceincometax(netofprovisionfortaxation) - 3,570.12

Unsecured-considereddoubtful - 52.86 Less:Provisionfordoubtfuladvances - 52.86

3,998.81 12,721.65Loanduebydirectororotherofficersetc*OtherofficersoftheCompany 19.10 1.00

15 OTHER NON CURRENT ASSETSUnsecured,consideredgood

AccruedInterest 27.02 27.02

No.ofShares/Units

Amount (In`Lakhs)

16 CURRENT INVESTMENTSNONTRADE-Unquoted-AtCostorNAVwhicheverislowerUnitsofMutualFunds-FullyPaidup

UTITreasuryAdvantageFund-InstPlan(DDP)-Reinvest 884,476.41 8,846.66 BirlaSunlifeSavingFund-Instl.-DD-Reinvest 4,480,144.13 4,484.39 BirlaSunLifeFixedTermPlanSeriesFCGrowth 19,800,000.00 1,980.00 BSLDynamicBondFund-Retail-Growth 9,489,165.05 1,799.99 ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend 3,374,944.15 3,568.50 ICICIPrudentialInstShorttermPlan-DivdReinvestmentFortnight 609,915.66 75.81 ICICIPrudentialReguShorttermPlan-DivdReinvestmentFortnig 14,983.64 1.80 ICICIPrudentialFMPSeries63-370Days 20,000,000.00 2,000.00 ICICI-ShorttermPlan-RegularGrowth 3,887,997.76 900.00 SBI-SHF-UltraShorttermFund-RegularPlan-DD 205,892.44 2,061.57 TempletonIndiaShorttermincomeretailplan 35,256.23 800.00 Total 26,518.72

NetAssetValue 27,069.20

79


(` Lakhs)

2012-13

17 INVENTORIES(ReferNote1.6ofStandaloneformodeofvaluation)RawMaterialsandcomponents

-InStock 7,299.24 -InTransit 649.22

Work-in-progress-InStock 5,725.36 -InTransit 116.14

Finishedgoods-InStock 9,705.04 -InTransit 625.02

Stock-in-trade-InStock 279.11

Stores,spares,fuel&packingmaterials-InStock 12,760.00 -InTransit 202.77

LooseTools-InStock 28.34

Total 37,390.24

18 TRADE RECEIVABLESOutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment

Secured,consideredgood 116.69 Unsecured,consideredgood 1,186.19 Unsecured,considereddoubtful 903.07

2,205.95 Less:Provisionfordoubtfuldebts 903.07

1,302.88 Others

Secured,consideredgood 4,159.13 Unsecured,consideredgood 15,210.34

19,369.47 Total 20,672.35

19 CASH&BANKBALANCESCash&CashEquivalentsBalancewithbanks:

-Incurrentaccounts 5,631.36 -Indepositwithoriginalmaturityoflessthan3months 7,563.80 -Inunpaiddividendaccount 97.99

Cheques,draftsonhand 190.26 Cashonhand 370.24 Stampsonhand 0.04

OtherBankBalancesDepositsEarmarked(againstPublicDeposits&obligation)* 670.52

14,524.21*Includesdepositof`450lakhslienmarkedagainstobligation&59lakhsasmarginforBankGuarantee

80


(` Lakhs)

2012-13

20 OtherCurrentAssetsInterestaccruedbutnotdue 205.82 Claims&otherreceivable

Consideredgood 217.89 Considereddoubtful 7.33

Assetsheldforsale(atlowerofnetbookvalueandnetrealisablevalue) 11.23 Others 0.32

442.59Less:Setofffromprovisionfordoubtfuldebts 7.33

435.26

21 RevenuefromOperations(Refernoteno1.4onrevenuerecognition)SaleofProducts

Cement 168,374.37 Refractories 27,431.57 Others-Clinker 1,009.48 Others-Dolomite 73.74

SelfConsumptionofProductsCement 381.89 Refractories 958.34

SaleofTradedProductsSlag,Coal&Gypsum 3,509.38 Refractories 7,422.11

SaleofServicesMarketingServices 418.32 BusinessAuxiliaryServices 15.40

OtherOperatingRevenue 845.59 210,440.19

Less:ExciseDuty 25,576.13 184,864.06

22 OTHER INCOMEInterestReceipts-Ondeposits,taxrefundsandfromcustomersetc. 268.41 GainduetoExchangeDifferenceotherthanconsideredasfinancecost(Net) 4.29 Dividendsfrominvestmentsinmutualfunds-current 1,283.33 Profitonsaleofcurrentinvestments 1.58 OtherNonOperatingIncome 980.10

2,537.71

23 COST OF MATERIALS CONSUMEDi) Limestone(OwnQuarry)-Seenotebelow 9,744.14 ii) Slag 15,568.79 iii) PurchasedClinker 2,686.44 iv) Others# 18,022.91

46,022.28

81


(` Lakhs)

2012-13

Notes:a) #Noneoftheseindividuallyaccountformorethan10%ofthetotalcostofmaterialconsumedb) Expensesincludedinthecostofrawmaterials

SalariesandWages 504.57 ContributiontoProvidentandOtherFunds 61.43 WorkmenandStaffWelfareExpenses 54.84 PaymenttoContractorsforServices 1,809.42 PowerandFuel 1,085.64 ConsumptionofStoresandSpareParts 1,720.59 RepairstoMachinery 1,510.11 RepairstoBuildings 19.06 RoyaltyandCess 1,828.00 Rent 4.91 RatesandTaxes 79.33 Insurance 24.51 CommissiontoOtherAgents - Depreciation 2,314.00 SundrySales/Income (36.08)

10,980.33

24 PURCHASE OF GOODS TRADEDSlag,Coal&Gypsum 3,454.03 Refractories 4,668.91

8,122.94

25 CHANGESININVENTORIESOFFINISHEDGOODS,WORKINPROGESS&STOCKINTRADEStocksatthebeginningoftheyear

FinishedGoods 3,269.92 TradedGoods 380.24 WorkinProgress 1,252.78

4,902.94 OpeningStockofsubsidiariesacquiredduringtheyear 1,650.51

6,553.45 Less:Stocksattheendoftheyear(Seefootnotebelow)

FinishedGoods 10,330.06 TradedGoods 279.11 WorkinProgress 5,841.50

16,450.67 (9,897.22)

FootNote:-StockinTrade

FinsihedGoodsCement 4,718.77 Refractories 5,619.72

10,338.49TradedGoods

Refractories 282.01 WorkinProgress

Cement 4,567.11 Refractories 1,274.39

5,841.50

82


(` Lakhs)

2012-13

26 EMPLOYEE BENEFITS EXPENSE(Refernote1.8ofStandaloneonemployeebenefits)

Salaries,Wages,BonusandGratuity 8,072.61 ContributiontoProvidentandOtherFunds 873.87 ContributiontoProvidentandOtherFunds-Contractorsemployees 262.57 WorkmenandStaffWelfareExpenses 497.56

9,706.61

27 FINANCE COSTSInterestexpense

OnTermLoans,DebenturesandDeposits 7,089.75 ToBanksandOthers 262.64

OtherBorrowingCost 253.77 Applicablenetgain/lossonforeigncurrencytransactionsandtranslation 161.40

7,767.56

28 OTHER EXPENSESConsumptionofStores,SparepartsandPackingmaterials 9,074.98 RepairsandMaintenance

Machinery 5,798.88 Buildings 632.21 Others 159.01

PaymentstoContractorsforServices 4,245.27 PaymentstoOutsideAgency 7.99 PaymentsforServices 23.43 RoyaltyandCess 14.54 Rent 676.56 RatesandTaxes 972.42 ExcisedutyonStockandOthers 1,098.00 Freight,TransportationandHandling 20,581.90 CommissiontoSellingAgents 598.57 Rebates,DiscountsandAllowances 393.40 Insurance 274.78 Travelling 513.72 AdvertisementandPublicity 1,929.48 Legal 238.25 Directors'TravellingandConveyance 15.18 Directors'Fees 10.30 CommssiontoNonExecutiveDirectors 41.55 CharityandDonations 487.70 AssetsWrittenoffandLossonSaleofAssets 10.89 LossduetoExchangefluctuationotherthanfinancecost(Net) 133.20 ProvisionforDoubtfulDebts 191.01 PaymenttoOutsideAgency 2,655.35 MiscellaneousExpenses 3,514.35 Total 54,292.92

83


(` Lakhs)

2012-13

29 OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS29.1 Contingentliabilitiesnotprovidedforinrespectof:

i) ClaimsagainsttheCompanynotacknowledgedasdebts a) DisputedliabilityrelatingtoESIContributiononovertimewagesandother

allowances55.95

b) DisputedliabilityrelatingtoPFContributiononcertainallowances 71.22c) DisputedliabilityrelatingtopaymentofpremiumonforestlandusedforMining

purpose154.13

d) ForPollutionControlBoard,Orissa 8.86e) DisputedclaimforsupplyofRefractories 156.30f) DisputedliabilitiesrelatingtoRailwayforenhancedGodownrentandoverloading

penalcharges175.91

g) DisputedSalesTaxdemand(includinginterest&penalty)-matterunderappeal 629.00h) DisputedEntryTaxdemand-matterunderappeal 149.66i) DisputedExcisematters 4,265.49j) DisputedcounterclaiminaArbitrationmatter. - k) DisputedliabilitiesrelatingtopurchaseofElectricity 358.92l) Others 363.04

6,388.48ii) OthermoniesforwhichtheCompanyiscontingentlyliable:

a) Disputedliabilityrelatingtolabourmatters-pendinginCourts 4.57b) DisputedliabilityrelatingtoLandmatters-pendinginCourts 39.51c) Others 78.50

Total 122.58

iii) DisputedliabilityinrespectofIncomeTaxdemands 302.88

Inrespectofitemsabove,futurecashoutflowsinrespectofcontingentliabilitiesaredeterminableonlyonreceiptofjudgements/decisionspendingatvariousforums/authorities.

iv) a)Guaranteegiven toBanksonbehalfofRadhikapur (West)CoalMiningPrivateLimitedagainstwhichcounterguaranteeof`561.00LakhshasbeenreceivedfromOCLIron&SteelLtd

1076.00

29.2 Estimatedamountofcontractsremainingtobeexecutedoncapitalaccount(netofadvances)andnotprovidedfor 15,644.97

29.3 IntheopinionoftheBoardandtothebestoftheirknowledgeandbelief,thevaluationonrealisationofcurrentassets,loansandadvancesintheordinarycourseofbusinesswouldnotbelessthantheamountatwhichtheyarestatedintheBalanceSheet.

29.4 TheSupremeCourtofIndiainApril,1996,upheldthevalidityofJutePackingMaterials(CompulsoryuseinPackingCommodities)Act,1987.TheCompanyhasbeenlegallyadvisedthattheActisapplicabletoitonlywitheffectfromOctober,1996.UndertheAct,CementManufacturersrerequiredtouseJutePackagingMaterialforsupplyordistributionupto50%oftheirtotalproduction.TheCalcuttaHighCourthasgrantedstayagainstshowcausenoticereceivedbytheCompanyfromtheJuteCommissioner.TheTransferPetitionfiledbytheUnionofIndiabeforetheHon'bleSupremeCourtwasdismissedbytheHon'blecourtduetodefaultandasaresultofwhichthependingwritoftheCompanywillbeheardbytheHon'bleKolkataHighCourtonmerits.Theamountthatmaybecomepayable,ispresentlynotascertainable.However,theGovernmenthasnotnotifiedthecompulsorypackingofCementinjutepackingmaterialsfortheperiodeffectivefrom1stJuly,1997.

29.5 Duringtheyearanamountof̀ 25.00lakhshasbeendonatedto"RashtriyaAhinsaManch"aregisteredPoliticalpartyundersection29AofRepresentationofthePeopleAct,1951havingitsregisteredofficeat132/1,MahatmaGandhiRoad,Kolkata-700007.

29.6 In respectof licencegranted for captiveminingBlockatRadhikapurmines, a JointVenture companyRadhikapur (West)CoalMiningPrivateLimitedhasbeenincorporatedon29thMarch2010inwhichtheCompany'sinterestjointlywithOCLIron&SteelLimited(OISL)is14.696%.TheCompanyhasinvested`734.80LacsinequitysharesoftheJVCompanywhichincludes`383.35 LacsbeingproportionatevalueofsharestobetransferedtoOISLafterthereceiptofapprovalfromtheMinistryofCoal,GovtofIndiaandotherJointVenturePartners.

29.7 Bankbalancesincludes`45,794/- lyinginacurrentaccountwithanationalisedbank,tobeoperatedjointlybytheauthorisedsignatoriesoftheCompanyandOISLinrespectofCoalBlockOperationsasmentionedinnote29.6above.

84


(` Lakhs)

Cement Refractory Others Unallocable Total

29.8 SegmentDisclosure(AS-17)

SegmentoperatingRevenue

External 172,893.23 35,345.74 15.40 208,254.37

Inter-Segment 4.35 421.39 - 425.74

SegmentResult

Profit/(Loss)beforetaxandinterest 31,310.17 2,252.82 (2,843.28) 30,719.71

Less:Interest 7,767.56 7,767.56

ProfitbeforeTaxation 22,952.15

ProvisionforTaxation-Current 5,900.00 5,900.00

-Deferred 905.44 905.44

-Taxrelatingtoearlieryears 200.00 200.00

ProfitafterTaxation 15,946.71

OtherInformation

SegmentAssets 172,781.05 37,225.42 33,238.66 243,245.13

SegmentLiabilities 31,425.90 6,597.13 98,353.86 136,376.89

CapitalExpenditureincludingcapitalWIP 13,290.84 818.27 251.17 14,360.28

Depreciation 15,560.07 708.16 42.54 16,310.77

Noncashexpensesotherthandepreciation:

ProvisionforLeaveencashment 14.59 16.08 6.52 37.19

Note:

a) Asperpractice consistently followed, inter segment transfers for capital jobs recognisedat cost and forother jobsatestimatedrealisablevalue.

b) Businesssegmentisconsideredasprimarysegmentandthereisonlyonegeographicalsegment.

29.9 RelatedPartyDisclosures(AS-18)

a) Relatedpartiesandtheirrelationship:

1) Keymanagement personnel :ShriMHDalmia, Shri RHDalmia, Shri.GauravDalmia(ManagingDirector), Shri D.D.Atal(WholetimeDirector)Relatives:Shri.A.H.Dalmia,Shri.V.H.Dalmia,ShriY.HDalmia,Smt.AbhaDalmia,Smt.PadmaDalmia,Smt. Shripriya Dalmia Thirani, Smt. Anuradha Jatia, Smt. Kanupriya Somany, Smt.Sharmila Dalmia, Shri.Puneet YaduDalmia,Smt.KiranAtal.

2) Subsidiary:OCLGlobalLimited(w.e.f01.01.2013)

3) StepdownSubsidiary:OCLChinaLimited(w.e.f01.01.2013)

4) Enterprises overwhich keymanagement personnel are able to exercise significant influence :HariMachines Limited,DalmiaBharatSevaTrustDapelInvestmentsPvt.Ltd,DalmiaInstituteofScientific&Research(DISIR),DaltonInternationalLtd,AgricoLtd.,DalmiaCement(Bharat)Ltd.,LandmarkPropertyDevelopmentCo.Ltd,ShreeNatrajCeramic&ChemicalIndustriesLtd,ChirawaNavyuvakTrust,AstirPropertiesPvt.Ltd,DalmiaShikshaPratishthan,LandmarkLandholdingsPvt.Ltd,DalmiaBharatSugar&IndustriesLtd,DalmiaBharatLimited(FormalyDalmiaBharatEnterpriseLimited),DCBPowerVenturesLtd,CalcomCementIndiaLtd,DebikaySystemsLimited,KiranResourcesPvt.Ltd.


85


(` Lakhs)

2012-13

b) Transactionswithaboveinordinarycourseofbusiness:1 Transactionswithpartiesreferredin(1)above:

a) Remuneration/Pension 526.89 b) InterestExpense 2.41 c) Servicereceived 7.00 d) RentPaid 28.04 e) Payableattheyearend 22.36

2 Transactionswithpartiesreferredin(2)above:a) Purchaseofgoodsandfixedassets 2,187.88 b) Servicerendered 164.31 c) GuaranteeProvided(USD12.56Lakhs) 689.13

3 Transactionswithpartiesreferredin(4)above:a) Purchaseofgoods 161.57 b) Purchaseoffixedassets 47.51 c) Saleofgoodsandfixedassets 2,087.67 d) Servicerendered 26.93 e) Servicereceived 2,548.76 f) Intercorporatedepositreceviedback (1000.00) g) InterestIncome 38.36 h) Advancegivenandreceived 4.85 i) RentPaid 29.64 j) Receivableattheyearend 449.93 k) Payableattheyearend 2,400.59

c) DisclosureofMaterialtransactionswithRelatedPartiesRemuneration

Syt.M.H.Dalmia 22.37 Syt.R.H.Dalmia 149.63 Shri.D.D.Atal 145.29 Shri.GauravDalmia 152.07

PurchaseoffixedassetsHariMachinesLtd. 47.51

PurchaseofgoodsDalmiaCement(Bharat)Ltd. 11.32 DalmiaBharatSugar&IndustriesLtd 45.97 DalmiaBharatLtd 104.23

SaleofgoodsandfixedassetsCalcomCementIndiaLimited 1,183.55 DaltonInternational.Ltd 812.02 HariMachinesLtd. 61.70

ServicerenderedHariMachinesLtd. 4.23

ServicereceivedHariMachinesLtd. 15.38 DalmiaCement(Bharat)Ltd. 36.59 DalmiaBharatLtd 2,282.10 DISIR 116.74 DaltonInternational.Ltd 76.17 AstirPropertiesPvt.Ltd.(Rent) 28.04


86


(` Lakhs)

2012-13

IntercorporatedepositreceivedbackCalcomCementIndiaLimited (1000.00)

InterestIncomeCalcomCementIndiaLimited 38.36

ReceivableattheyearendHariMachinesLtd. 9.73 CalcomCementIndiaLimited 387.81

PayableattheyearendDaltonInternational.Ltd 90.83 DalmiaBharatLtd 2,282.10 DalmiaCement(Bharat)Ltd. 17.25

29.10 Earningpershare(EPS)AS-20Profitaftertax(In`Lakhs) 15,934.19WeightedAverageNo.ofequitysharesof`2eachason31.03.2013

Basic&Diluted(No.inLakhs) 569.00EPS(`)

Basic&Diluted 28.00

29.11 FollowingJointVenturehasbeenconsolidatedonproportionatebasis:NameoftheCompany Countryof

IncorporationProportionof

OwnershipInterestasat

March31,2013Radhikapur(West)CoalMiningPrivateLimited India 7.029%i) TheJointVentureisajointlycontrolledentitywiththejointcontroloverfinanceandmanagementbyalltheJVShareholders,

whichisclearlyspeltoutintheMemorandumandArticlesoftheJointVentureCompany.Radhikapur(West)CoalBlockhasbeenallottedtothreeventurersviz.RungtaMinesLimited,OceanIspatPrivateLimitedandOCLIndiaLimitedbyGovt.ofIndia,MinistryofCoalvidetheirletterNo.13016/77/2006-CA-Idated21stDecember,2009.

ii) DetailsoftheOCLIndiaLimited’sshareofassetsandliabilitiesintheJointVentureincludedintheConsolidatedFinancialStatementsareasfollows:

(` Lakhs)

AsatMarch31,2013(unaudited)

EQUITY&LIABILITIESCurrentLiabilities

Tradepayables 0.85 Othercurrentliabilities 0.01

Total 0.86 ASSETSNon-currentAssets

Tangibleassets 0.25 Pre-OperativeExpenses(refernoteno.12) 66.51 Long-termloansandadvances 149.80 CurrentAssetsCash&bankbalances 128.72 Short-termloansandadvances 7.03

Total 352.31

This ispre-Operatingperiodof the JointVenturecompany.All theexpenditure incurredtill commencementof commercialproduction isclassifiedas‘MinesDevelopment&Pre-OperativeExpenses’pendingcapitalizationunderpre-operativeexpenses.


87


(` Lakhs)

2012-13

29.12 ForeignCurrencyExposure(AmountinLakhs)

i) ‘Hedged-TermLoan USD 23.68

ii) NotHedgedDebtors USD 3.33 Euro 1.77

Creditors USD 8.11 Euro 1.91JPY 6.67GBP 0.30

Cash&BankBalance USD 0.01GBP(GBP330) -

Euro 0.01RMB 0.03

JPY(JPY220) - Kwacha 0.30

TermLoan USD 35.52

PCFCLOAN USD 5.13EURO 3.43

ForeignCurrencyLoanavaildunderBuyers’Credit USD 203.6329.13 EmployeeBenefits-AS15(Revised)

a) TheCompanyhasdeterminedtheliabilityforEmployeebenefitsasatMarch31,2013inaccordancewithrevisedAccountingStandard15issuedbyICAI-Employeedefinedbenefits.

b) FollowinginformationarebasedonreportofActuary. DefinedbenefitplansasatMarch31,2013 (` Lakhs)

2012-13Gratuity(Funded)


A) Break-upofexpenses 1) CurrentServiceCost 131.03 199.13 2) Interestcost 91.71 18.50 3) Expectedreturnonplanassets 95.09 - 4) NetActuarial(gain)/lossrecongisedduringtheyear 139.58 (60.83) 5) Totalexpense 267.23 156.80B) Actualreturnonplanassets 1) Expectedreturnonplanassets 95.09 2) Actuarialgain/(loss)onplanassets 21.28 3) Actualreturnonplanassets 116.37C) Reconciliationofobligationandfairvalueofassets 1) Presentvalueoftheobligation 1,488.05 328.18 2) Fairvalueofplanassets 1,488.53 - 3) Fundedstatus[surplus/(deficit)] 0.48 (328.18)D) ChangeinpresentvalueoftheobligationduringtheyearendedMarch31,2013

1) PresentvalueofobligationasatApril1,20122) CurrentServiceCost 1,188.28 291.003) Interestcost 131.03 199.134) Benefitspaid 91.71 18.495) Actuarial(gain)/lossonplanassets (83.83) (119.61)6) PresentvalueofobligationasatMarch31,2013 160.86 (60.83)

1,488.05 328.18


88


(` Lakhs)

2012-13

E) ChangeinAssetsduringtheyearendedMarch31,20121) FairvalueofplanassetsasatApril1,2012 1,188.692) Expectedreturnonplanassets 95.093) Contributionmade 267.304) Benefitspaid (83.83)5) Actuarialgain/(loss)onplanassets 21.286) FairvalueofplanassetsasatMarch31,2013 1,488.53

F) ThemajorcategoryofplanassetsasapercentageoftotalplanGratuity:76%(PY93%)investedwithCentralGovt/Stategovt/StateGovt.Sec-urities/PublicsectorbondsFixedDepositwithPSUBanksLeaveEncashment:Unfunded

g) ActuarialAssumptions1) Discountrate 8.00%2) Expectedrateofreturnonplanassets 8.00%3) Mortality LIC 1994-964) Salaryescalation 5.00%

c Gratuityisadministeredbyanapprovedgratuityfundtrust

d Amountrecognisedasanexpenseinrespectofdefinedbenefitsplanasunder:1 ContributiontoGratuityFund 267.302 Gratuitypaiddirectly 21.813 Leaveencashment 156.79

445.90

e DefinedContributionplan:ContributiontoDefinedContributionPlan,recognisedasexpensefortheyearasunder:1 Employer'scontributiontoGovernmentProvidentFund 612.512 Employer'scontributiontoSuperannuationFund 60.563 Farewellgifttoretiredemployees 2.124 Medicalinsurancepremiumtoretiredemployees 10.77

685.96

29.14 CapitalWork-In-ProgressatOCLBengalCementWorks/Medinipurincludestheollowingexpenses/incomeSalary&Wages 199.89Rent 8.77Rates&Taxes 0.80Insurance 41.57FinanceCharges 111.82Others 105.71


OnbehalfoftheBoard






R.RaghuramanPartner

MNo.81350


D. N. DavarDirector


89


SUMMARY OF FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES FOR THE FINANCIAL YEAR 2012-13

TheMinistryofCorporateAffairsvideitsCircularNo.2/2011dt.8thFebruary2011,hasgrantedgeneralexemptionunderSection212(8)ofCompaniesAct,1956tocompaniesfromattachingtheaccountsofSubsidiaryCompanieswiththeAnnualReportoftheCompany.However,companiesarerequiredtoprovidesummarisedfinancialinformationofthesubsidiaries.

Accordingly,OCLIndiaLimitedisprovidingasummaryoffinancialinformationofitssubsidiarycompaniesinlieuofattachingtheannualaccountsofitssubsidiarycompanieswiththeAnnualReportfortheyear2012-13.TheAnnualAccountsoftheSubsidiaryCompaniesareavailablewiththeCompanySecretary,OCLIndiaLimitedandareopenforinspectionbyanyshareholderattheRegisteredOfficeofthecompanyduringworkingdays.ThecopyofAnnualAccountsshallalsobemadeavailabletoanyshareholderofOCLIndiaLimitedoritssubsidiaryonrequestinwriting.

Thesummaryoffinancialinformationofsubsidiarycompaniesforthefinancialyear2012-13isasgivenbelow:

(`Lakhs)

S. No.

Particulars OCLGLOBALLTD. OCLCHINALTD.

FinancialYearendingon# 31.03.2013 31.03.2013 31.03.2013 31.03.2013

ReportingCurrency INR USD INR RMB

ExchangeRate(Ason31.03.2013) 54.88 - 8.76 -

ExchangeRate(Averagerate2012-13) 54.64 - 8.68 -

1 ShareCapital 1,347.88 28.30 2,441.12 404.29

2 ShareApplicationMoney - -

3 Reserves 3,451.96 59.16 2,057.54 107.80

4 Liabilities 2,418.34 44.07 4,211.37 480.81

5 TotalLiabilities 7,218.18 131.53 8,710.03 992.90

6 TotalAssets 7,218.18 131.53 8,710.03 992.90

7 Investments* 2,831.81 51.60 - -

8 Turnover 12,409.31 227.11 10,221.29 1,178.14

9 ProfitBeforeTaxation 867.80 15.88 511.65 58.97

10 ProvisionforTaxation - - 171.58 19.78

11 ProfitAfterTaxation 867.80 15.88 340.07 39.20

12 ProposedDividend - - - -

#FinancialyearofOCLChinaLtd.endson31.12.2012,however,tocoincidewiththefinancialyearofOCLIndiaLtd.theaccountshavebeendrawnandauditedupto31.03.2013

*InvestmentinOCLChinaLtd.`2,831.81Lacs

Note:

1 AssetsandLiabilitiesforBalanceSheetItemsofforeignsubsidiariesaretranslatedattheclosingrateason31.03.2013.

2 IncomeandExpenseitemsofforeignsubsidiariesaretranslatedattheaverageexchangerateduring2012-13.

3 ShareCapitalofForeignSubsidiariesistranslatedattheexchangerateexistingatthedateoftransaction.

OCL INDIA LTD.Registered Office: Rajgangpur, Odisha - 770017, India

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