CEAT Annual Report 2010 11

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vroom!

CORPORATE OVERVIEW

02 Company Snapshot__________08 Excelleration____________ 14 Financial Highlights____________

16 Operational Breakthroughs of 2010-11____________

Forward-looking statements

In this Annual Report, we have disclosed orward-looking inormation to enable investors to comprehend our prospects and take investmentdecisions. This report and other statements - written and oral that we periodically make contain orward-looking statements that set outanticipated results based on the managements plans and assumptions. We have tried wherever possible to identiy such statements by usingwords such as anticipate, estimate, expects, projects, intends, plans, believes, and words o similar substance in connection with any

discussion o uture perormance.

We cannot guarantee that these orward-looking statements will be realised, although we believe we have been prudent in assumptions. Theachievements o results are subject to risks, uncertainties, and even inaccurate assumptions. Should known or unknown risks or uncertaintiesmaterialise, or should underlying assumptions prove inaccurate, actual results could vary materially rom those anticipated, estimated, orprojected. Readers should keep this in mind. We undertake no obligation to publicly update any orward-looking statements, whether as a resulto new inormation, uture events or otherwise.

STRATEGIC REVIEW

17 Strategies to Stay Ahead__________18 Meeting Customer Demands____________ 20 Innovation in Services____________

22 Branding Strategies____________ 24 Corporate Social Responsibilities____________

STATUTORY REPORTS

26 Corporate Information__________ 27 Notice__________ 30 Directors Report__________

40 Management Discussion and Analysis____________ 52 Corporate Governance Report__________

FINANCIAL STATEMENTS

69Standalone Financials__________103Consolidated Financials____________

Attendance Slip and Proxy Form are enclosed at the end o this report.


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CORPORATE OVERVIEW Topic Heading Dummy Topic Heading Dummy Copy As Heading The Copy Is Dummy Here

1Annual Report 2010-11

ExcellerationCan excellence and acceleration converge?

Can technology and human ingenuity extend the limits o the possible?

Can collective dynamism and youthulness drive momentum in business and lie?

At CEAT, the answer is an emphatic yes.Welcome to perpetual motion.

For nearly ive decades, we have traversed

challenging roads to expand our presence in thenational and international markets, on the strength

o our product innovation and deep customercentricity. Our customer delivery model revolves

around a uturistic ormula: excelleration. Putting itsimply: accelerated delivery o excellence.

Product innovation, at CEAT, starts with a deep

customer insight and a keen understanding o theglobal markets. This is supported by a culture that

encourages employees to respond nimbly withnew ideas to solve varied customer challenges. As

perectionists, we value the role o technological

brilliance and innovation in our industry; concurrently, we have a deep

regard or teamwork and stamina.

We have been all-weather riends o our customers across multiple roads;

and yet road riction and atigue has not corroded our youthul conidenceand dynamism to grow. We are unrelenting in our growth approach:

gaining access to new customers and markets globally; enriching productsportolio; enhancing quality benchmarks through investments in research

and development; and extending our brand recall and respect in all sphereso lie.

Today, CEAT is more than a global brand or tyres, tubes and laps. Itrepresents the courage and conidence o young Indians to help create a

better India and a humane world.


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SnapshotCompany

, the lagship company o the RPG Enterprises, is among Indias leadingtyre manuacturers producing over 10 million tyres annually. We are widening our

visibility nationally and internationally with our wide range o tyres, tubes and laps. TheCEAT brand stands or superior quality and durability, so that our customers can have a

hassle-ree ride, even on the roads less travelled.

2CEAT Limited


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CORPORATE OVERVIEW Company Snapshot Excelleration Financial Highlights Operational Breakthroughs


a snapshot

RPG Enterprisesis one o Indias

leading business groups with a

turnover o ` 18,500 crore (USD

4.16 billion). RPG Enterprises

has a strong presence in

multiple sectors: inrastructure,

power, tyres, retail, inormation

technology, carbon black,

speciality and entertainment.


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VisionTo be amongst the most proitable tyre companies in India by 2016 through: Marketleadership in select categories in India and market leadership in signiicant countries outside India.

4CEAT Limited

Challenger Aspiration-led Integrity Result obsession OpennessCore Values


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10

34

100+

3,500+


Outsourcing units ortyres, tubes and laps

Regional Oices

C&F agents

Dealers

3ManuacturingPlants

presenceNational


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for all

TyresCEAT oers the widest range o tyres to all user segments and manuactures

world-class tyres or all Indian vehicles comprising:

Heavy-duty trucks and buses

Light commercial vehicles (LCV)

Earthmovers

Forklits

Tractors

Trailers

Cars and Jeeps

Motorcycles and scooters

Auto-rickshaws

6CEAT Limited


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Product distribution

Segment-wise

facilitiesManufacturing

Production capacities(tonnes per day)

Volume-wise(%)

Volume-wise(%)

66

14

20

60

11

10

8

4

7

Replacement ExportsOEMFarm

Trucks and Buses

Car/ Jeep

2-3 wheelers

O the Road and Industrial Vehicles

Light Commercial Vehicles

CEAT owns two tyre manuacturing acilities in Maharashtra (Bhandup and Nasik) and has also set up a

greenield radial tyre manuacturing acility at Gujarat (Halol).

CEAT has three manuacturing plants in Sri Lanka in Joint Venture and it also outsources certain amount o

automotive tubes, tyres and laps.

175

60

140

240

2010-11

200

90

170

240

2011-12E

200175

205

240

2012-13E

Bhandup Nasik

Halol Outsourcing



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8CEAT Limited

Think aheadto even out the odds

CEATs objective is to think ahead o its customers to deliver

better value, even in a resource-scarce environment. As a part

o this strategy, we oten question conventional approaches,think laterally and revisit old strategies.


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Opposed to conventional thinking, micro

ocus sometimes yields mega beneits. We

take a minute look at every aspect o the

organisation or opportunities to get better.

Each and every process and product at CEAT

is approved by appropriate certiication. CEAT

is Indias irst organisation to get the ISO/TS

16949:2002 certiication by the International

Automotive Task Force (IATF) and JapanAutomobile Manuacturers Association. This

certiication ensures quality management and

a smooth supply chain, minimising anomalies

and wastage.

CEATs advanced technology leverage and

high-end research and development enhance

the on-road pleasure o end customers.

The tyres are tested or best endurance

and perormance, and are accredited by

the Department o Scientiic and Industrial

Research (DSIR).

For CEAT, customers are more than product

buyers; they are also part o the society we

live and cherish. Our Be Idiotsae campaign

enhances awareness on road saety and helps

create a mass movement against unsae road

conditions created by rash drivers. CEAT bike

tyres with superior grip are positioned as a part

o this pervasive campaign against road idiots.

The Be Idiotsae advertisement was ranked

as the ourth best advertisement by redimail

ater Vodaone, Volkswagen and Cadburys.

Besides, CEAT Cricket rating enjoys wide

acceptance, reinorcing the brand globally.


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10CEAT Limited

In order to enhance visibility signiicantly, the organisation is ocusing on capacity enhancement

o its current manuacturing units in India. Besides, the Halol plant in Gujarat has also commenced

operation. The plants advanced technology will help enhance the production o radial tyres,

which has an immense market potential.

We have also acquired the CEAT brand rom Pirelli & C. SpA or 9 million Euro. The acquisition will

help CEAT enter new markets, such as Latin America, Europe and the US in the radial tyre segment.

Further, it allows CEAT to outsource tyres rom any country under the CEAT brand.


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Acceleration,Sustained

our future strategyOur business approach is to ormulate a easible growth strategy,

consolidate resources and evolve a derisked business model by closely

monitoring internal eiciencies and market actors.


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&

Racing ahead with

strength vigour

12CEAT Limited

We sponsor multiple youth-ocused television programmes (MTV Roadies, MTV Roadies Battle Ground, MTV Stunt

Mania and Khatron Ke Khiladi) to make the brand relevant to Indian Youth, who comprise around 50% o the

population. This diferentiated branding has enabled CEAT to gain enhanced eye share and higher recall in India.

Besides, CEATs long association with cricket has endeared it to a cricket-obsessed nation like India; and even to

the young people o other cricket-loving nations globally.

CEATs dynamism is also relected in its employee proile. The average employee age is around 36 years; and i

we consider the age o trainees it is only 32. Adequate emphasis is laid to the training and development o each

employee in the organisation, and a vibrant culture o continuous learning keeps the proessionals young at heart.

CEAT brand health research in May 2010

Youthul Premium Dynamic

42

28

May10 09

38

23

May10 09

22

39

May10 09

10 cities,1519 sample size

(Brand Score %)

CEAT is all about strength and vigour and this relected in our dierentiated branding,

targeting the young population, who represent Indias driving orce.


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FinancialHighlights

14CEAT Limited

Total Income(` lacs)

07 08 10 11

2,1

59,2

2.1

5

2,3

52,5

0.1

8

2,4

15,6

1.9

2

2,8

49,6

1.1

2

3,5

29,1

4.5

3

09

PBT(` lacs)

07 08 10 11

60,9

1.8

8

197,3

1.0

4

(37,1

7.2

2)

238,9

9.6

5

33,2

4.1

9

09

EBIDTA(` lacs)

10 11

322,7

1.0

8

145,9

0.2

8

07

1,5

2

,40.6

5

08

287,

24.0

4

58,1

4.3

1

09

PAT(` lacs)

07 08 10 11

39,2

4.8

5

148,6

0.4

4

(16,1

1.1

6)

161,0

4.1

5

22,2

8.3

3

09


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Shareholdersunds (` lacs)

07 08 10 11

378,6

3.7

9

513,2

5.7

3

488,3

8.1

5

628,7

1.4

5

649,1

4.5

2

09

Earnings perShare (`)

07 08 10 11

8.6

0

40.0

6

(4.7

1)

47.0

3

6.5

1

09

Net CurrentAssets (` lacs)

07 08 10 11

56,2

2.1

4

218,4

5.8

0

312,

21.5

5

241,45.4

8

121,11.9

6

09

Dividend(` per Share)

07 08 11

1.8

0

4

0 2

09


10

4


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16CEAT Limited

breakthroughs of 2010-11OperationalExpanded capacity at the Nasik plant by over

1000 tonnes per monthPiloted the new-age CEAT Shoppe,to enhance the tyre retailing experience

Launched highly eectiveadvertisement campaigns:Gross Rating Point (GRP) o irst campaign is

1000; Cricket World Cup campaign generated

800 GRP; smart leverage o digital platorm

to connect with youth

Enhanced rural visibility and channel

expansion: 750 dealers wereappointed in the rural marketsin the third and ourth quarters o 2010-11

Achieved elevated productivity levels, a

result o organisational initiatives, such as

Total Quality Management inthe entire workorce

Commenced the irst phase o productiono radial tyres at Halol, Gujarat

Acquired the global rights o the CEAT

brand rom Pirelli & C. SpA or 9million Euro (` 55 crore)

Introduced Indias irst tractor tyre, meant

especially or rice ield application

Launched India RoadTransportation Awards, irst oits kind in the Indian automobile industry, to

recognise and honour high-perorming truck

leet and logistics companies or their

innovations


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STRATEGIC REVIEW Strategies to Stay Ahead Meeting Customer Demands Innovation in Services Branding Strategies

New product development is driven by two objectives:

keep pace with competition and improve the existing

product range; and develop innovative products to elevate

industry standards.

CEAT believes in comprehensive innovation,

encompassing products, processes, services,

communications and channels. Thereore, new product

development requires considerable understanding o the

customer requirement and their eedback. The product

managers are trained regularly to understand and

observe the customers, dealers and vendors. Besides,

research agencies, like ACNielson are also involved to

conduct surveys. Critically, a new product development

includes the ollowing processes:

Customer Input

Product development

In-house testing

On-ield testing

Corrections

Commercial production and market introduction

to stay aheadStrategies

New product development

To elevate development of design

capabilities, CEAT uses the above

tools in their R&D Centre

CATIA and Unigraphicssotware or 3D modelling

ABACUS andHypermesh sotware orinite element modelling

PLM to integrate all aspectso the product rom customer

inputs to product perormance


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18CEAT Limited

The moreclosely we seecustomersperspectives,the more likely weare to meet their

demandsCustomer centricity is the main ocus o CEATs

business strategy. Integrating the customers

perspective and insights, CEAT developed the

ollowing products:


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AayushmaanR2-theRicespecialtractorrealtyre:firstofitskindinthecountryCustomerrequirements... Shouldavoidslippageoftractorsinthefield

Shouldnotburnmorefuelinmuddyfieldsduringharvesting

Shouldnotbepiercedandpuncturedbydifferentplantstubslikesugarcane...havebeenaddressedinAayushmaanR2tyres.

Directadvantages

Thetyresdontgetstuckinthewetsoil Thefarmercanpuddlemoreacresatthesametime,thusincreasingproductivity SavesfuelfortractorownerBettercropyield

TruckPROseries

Customerdemands...

Highmileageathighload

Highmileageathighspeed

Nofailurewithsuper-heavyload

...havespearheadedthedevelopment

ofMILE

XLPROandLUGXLPRO

Directadvantages

Highloadcarryingcapacity

Highersurfacecontact

Surviveshighservicecontact

Excellentinitialmileage

Highfuelefficiency

Innovationinmotorcycletyres

Bikingoncityroadscanbeadangerou

saffair,ifwe

encounterjaywalkersandcarelessdr

ivers.CEAT

introducedthepremiumGrippseries

todealwiththe

frequentproblemsfacedbythebikers

onroad.Inthe

currentfiscal,ithascompletedtheGr

ipprangeacross

keysizes.Besides,ithaslaunchedMil

azeandZoom

patternsinselectsizesandaspecialt

yreformud

terrainforHeroHonda.

Directadvantages

Excellentgripandfreerollingoftyre

Excellentwaterpumpingevenwhil

ecornering

Maximumleaningatcornersandsta

bilityat

highspeed

Highgriponwetanddrysurfaces

LCVBulandSeriesCustomerneeds...

Longevity,reliabilityandeconomicprice Shouldnotwearoffearly ShouldtakemaximumtimewithoutburstingSmoothjourney

...havecatalysedthedevelopmentofLUGXLandMILXLRIB

Directadvantages

WonderBeadforhigh-loadcarryingcapacityWidertreadwidthforhighermileage Continuousshoulderribtowithstandheavystrainsatshoulder

ETCsystemtoabsorbshockandprovideasmoothride



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20CEAT Limited

Innovation in

servicesfor enhancedcustomer engagement

CEAT Tyre Retread Centre

CEAT Hub & CEAT Shoppe

Spiralling rubber prices made it imperative or truck owners to seek new ways to get the

most out o the old tyre. Retreads are signiicantly cheaper than new tyres. CEAT has

developed its own brand o treads to provide high quality retread to the

truck owners through the CEAT Tyre Retread Centres (CTRC).

The CTRCs will be having an agreement with CEAT or retreading o trucks, buses and LCV

tyres or customers. The Pre-cured CEAT Tread Rubber belts as well as the allied materials

Bonding Gum and Black Vulcanising Cement (BVC) will be provided to CTRCs, whereby the

CTRCs will use only CEAT treads and raw materials or tyre retreading.

CEAT is ocusing on a pan-India presence or CTRCs, with an initial target o launching 90

Tyre Retread Centres by the end o FY11-12. In terms o Pre-cured Tread Rubber

(PCTR) volume, it aims to achieve sales o around 140 tonnes by the end o this iscal.

To provide a platorm or direct customer interaction and oer quality products and services,

CEAT has launched a one-stop tyre shop called CEAT HUB (or Truck and LCV tyres)

and CEAT Shoppe (or passenger cars). These retail outlets act as a suitable platorm

to attract new customers, and also exert control over distribution networks.

The number o Hubs has increased to 335 in the current year, compared with 265 in

the previous year. Similarly, the number o CEAT Shoppes is expected to touch 200,

including those in Tier II and Tier III cities.


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CEAT PRO

The Dealer Portal

To empower the leet owners with access o inormation and resources, CEAT launched its

knowledge series CEAT PRO. High level representatives rom logistics, inance,

HR, commercial vehicle and other related sectors address a variety o

issues, such as driver training and shortage, new technologies, controlling credit to manage

business and developing a platorm to charge better rates or minimising acquisition cost.

In the past 20 months, CEAT PRO has covered 58 cities and beneited

4250 transporters, enjoying wide media publicity.

For improved communication between dealers and the Company, CEAT has launched a

web interace on January 1, 2011. A unique user ID and password is provided to each

business partner, enabling irst-hand inormation access o dealers Statement o Accounts with

the Company, their claim status, their invoice-wise sales, and their Credit/ Debit Notes. The

dealer portal also provides updates about discounts, schemes and new product launch details

and alerts on price hikes and roll backs.



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22CEAT Limited

India Road Transportation Awards

Be Idiotsafe CampaignThe Above The Line (ATL) campaign in bike tyre category had two bursts o 800+ GRPs in the pan India target

group. It has created high impact during the ICC Cricket World Cup, 2011. The digital association with the

campaign engaged 77,000+ ans on acebook and 250,000+ visitors on www.beidiotsae.com website.

It was urther supported by Below The Line (BTL) campaign at Cae Coee Day outlets, hoardings and Point o Sales

deployments.

To recognise the transporters who have contributed immensely to Indias growth story and to set a benchmark

o excellence in the industry, CEAT organises the India Road Transportation Awards. The IRTA 2010 was a

resounding success with direct participation o over 7000 eligible leet owners. It reinorced our

brand visibility and acilitated the sharing o industry knowledge and enhanced customer satisaction.

Brandingstrategies


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CEAT Cricket Rating

CEAT is one o the top ive brands associated with cricket. The CEAT International Cricket Rating System wasormulated with direct intervention o cricketing legends (Clive Llyod, Ian Chappel and Sunil

Gavaskar), and today the CCR is highly respected among the cricket ans globally. Furthermore, tie-up

with Neo or the whole year or Asia Cup, TOI score card and points tally branding during IPL

and T20 World Cup created a strong ootprint or CEAT in the international cricketing space.

Brands associated with Cricket Rating (Brand Recall %)

Redif

Maruti

Idea

ICC

Castrol

11

17

5

24

45

33


Source: TNS India Private Limited, June 2010


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24CEAT Limited

At RPG Group CSR is not a random list. We embrace responsibility or the Companys actions and encourage

positive impact through core business operations. Our deliberate promotion and inclusion o public interest

seeks to honour the triple bottom line: people, planet and proit. This culture is relected notably at CEAT.

The year-round stakeholder priorities at CEAT cover workplace, community, and environment. Through our social

programmes, we strengthen our ties with the people we touch.

From the various activities CEAT conducted during the last one year, we pick some that relect our values and bear direct

signiicance to the society.

Sustainability or triple bottom line is incomplete

without active eorts to preserve natures

elements and conserve natural resources.

CEAT commemorated World Environment

Day at the Bhandup Plant by distributing

badges, organising art competitions or

employee children, tree plantation and a

screening o the documentary The

Inconvenient Truth. CFL distribution

cells were also set up or employees

so they could switch to energy conserving

illumination at highly subsidised prices.

Spiritedventures

Environment

They say it is always in season or the old

to learn. The trick is to bring home the

learning. CEAT organises workshops,

government certiied training

programmes, and conducts skill-

building sessions.

Workshop by LIC or employees oninancial planning

Skills development or women employees

Government recognised courses or

assistant wiremen and basic electricians to

improve employability

Tailoring classes to empower womenEducati

on


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Healthcare and awareness are constant

initiatives on the CEAT CSR cell calendar.

We organised multiple health check-ups or employees. These included bone

density tests, thyroid examination, eyes and

ENT checks and a bone densitometry camp.

Blood donation and yoga camps were

also organised or employees. Apart rom

these, to create awareness on various aspects

o health, we observed the World Heart

Day to create awareness about cardiac

ailments, World No-Tobacco Day to bring

to ore the ill eects o tobacco, gutkha and

cigarette smoking and World AIDS Day.

CEAT also supports underprivileged

cancer patients with monetary aid, to

which our employees contribute generously.

At CEAT, we believe todays children will

to the line o enterprising endeavours

o tomorrow. We have adopted theGyananubhava Vidyalaya at Karjat.

Through the year, we celebrated

Teachers day, and conducted sessions

on domestic and general saety, pollution

and its control, art o living, yoga and health

and hygiene.

We also celebrated Senior Citizens

day with Runanubandh, a get together

or the elderly o the community where

we had organised entertainment andelicitations or all attendees.

Children o employees and the community

were engaged in an art and crat

workshop during their Diwali break.

Health

Community

Welf

are

STRATEGIC REVIEW Corporate Social Responsibilities


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26CEAT Lte

CopoteInformation

Board o direCtors

R. P. GoEnkAChairman

H. V. GoEnkAVice Chairman

PARAs k. CHowdHARyManaging Direcr

AnAnT VARdHAn GoEnkADep Managing Direcr

VinAy BAnsAL

A. C. CHoksEy

s. doREswAmymAHEsH s. GuPTA

HAiGREVE kHAiTAn

BAnsi s. mEHTA

HARi L. mundRA

k. R. PodAR

audit Committee

HARi L. mundRAChairman

s. doREswAmyMember

mAHEsH s. GuPTAMember

shareholders/investorsGrievanCe Committee

mAHEsH s. GuPTAChairman

PARAs k. CHowdHARyMember

s. doREswAmyMember

Company seCretary

H. n. sinGH RAjPooT

reGistered oiCe

463, Dr. Annie Besan Rad,

Wrli, Mmbai - 400 030.

plants

Village Rad, Bhandp,

Mmbai - 400 078.

82, MIDC, Indsrial Esae,

Sapr, Nasik 422 007.

Village Gae Mvala, Hall,Panchmahal, Gjara 389 350.

leGal advisors

Mlla & Mlla and Craige, Bln & Care

auditors

n. m. RAiji & Co.

reGistrar & share transeraGents

TsR dARAsHAw LimiTEd

6-10, Haji Msa Parawala IndsrialEsae, 20, Dr. E. Mses Rad, Wrli,Mmbai - 400 011.

Bankers

BAnk o BARodA

BAnk o indiA

CoRPoRATion BAnk

Exim BAnk

iCiCi BAnk LimiTEd

indiAn BAnk

indusTRiAL dEVELoPmEnT BAnk oindiA

sTATE BAnk o indiATHE kARnATAkA BAnk LimiTEd

uCo BAnk

yEs BAnk LimiTEd


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StAtutoRy REPoRtS Direcrs Repr Managemen Discssin and Analsis Repr n Crprae Gvernance

27Aal Reprt 2010-11

NotICE is hereb given ha he -secnd Annal General Meeing he Cmpan will be held a Ravindra Naa Mandir,P. L. Deshpande Maharashra Kala Academ, Saani Rad, Prabhadevi, Mmbai - 400 025, n Frida, Ags 26, 2011 a 3.30p.m. ransac he llwing bsiness:

ordinary Business

1. t receive, cnsider and adp he adied Balance Shee as a March 31, 2011 and Pr and Lss Accn r he nancialear ended n ha dae, he Repr he Adirs heren and he Repr he Direcrs.

2. t declare dividend n Eqi shares.

3. t appin a Direcr in place Mr. H. V. Genka wh reires b rain and, being eligible, has ered himsel rre-appinmen.

4. t appin a Direcr in place Mr. S. Dreswam wh reires b rain and, being eligible, has ered himsel rre-appinmen.

5. t appin a Direcr in place Mr. Bansi S. Meha wh reires b rain and, being eligible, has ered himsel rre-appinmen.

6. t appin Messrs N. M. Raiji & C., as Adirs he Cmpan hld ce rm he cnclsin his Annal General

Meeing he cnclsin he nex Annal General Meeing and x heir remnerain.

speCial Business

7. t cnsider and i hgh , pass wih r wih mdicain, he llwing reslin as an ordinar Reslin.

RESoLVED tHAt Mr. Vina Bansal, wh was appined as a Direcr he Cmpan wih eec rm Jl 24, 2009 in hecasal vacanc cased de he demise Mr. M. A. Bakre, and wh hlds ce nder he prvisins Secin 262 he Cmpanies Ac, 1956 p he dae his Annal General Meeing and in respec whm he Cmpan has received anice in wriing rm a member prpsing his candidare r he ce Direcr and wh is eligible r appinmen, beand is hereb appined as Direcr he Cmpan whse erm ce shall be liable reiremen b rain.

notes

a) A member eniled aend and ve is eniled appin a prx aend and ve insead himsel and he prxneed n be a member.

b) the insrmen appining he prx shld, hwever, be depsied a he regisered ce he Cmpan n less hanr-eigh hrs bere he cmmencemen he meeing.

c) Members are reqesed kindl reer he Chaper n Crprae Gvernance Repr in he Annal Repr r he inrmainin respec re-appinmen/appinmen Direcrs, nder Clase 49 he Lising Agreemen. o he Direcrsseeking re-appinmen, nl Mr. H. V. Genka hlds 13,932 eqi shares in he Cmpan.

d) Mr. H. V. Genka is he aher Mr. Anan Vardhan Genka, Dep Managing Direcr he Cmpan and he sn Dr. R.P. Genka, he Chairman he Cmpan. Nne he her Direcrs seeking re-appinmen is relaed an member he Bard Direcrs r an Managemen Persnnel.

notice


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28CEAT Lte

e) the Regiser Members and he Share transer Bks he Cmpan shall be clsed rm Frida, Ags 12, 2011 Frida,Ags 26, 2011 (bh das inclsive).

) Prsan he prvisins Secin 205A he Cmpanies Ac, 1956, dividend r he nancial ear ended March 31,2004, which remained nclaimed r npaid r he perid seven ears will be ranserred he Invesr Edcain andPrecin Fnd (IEPF) esablished nder Secin 205C he Cmpanies Ac, 1956. Members wh have n encashed heirdividend warran(s) s ar r he nancial ear ended March 31, 2004 r an sbseqen nancial ears are reqesed make heir claims he ce r Regisrar and transer Agens, tSR Darashaw Limied (Frmerl taa Share RegisrLimied), 6-10, Haji Msa Parawala Indsrial Esae, 20, Dr. E. Mses Rad, Mahalaxmi, Mmbai - 400 011. I ma als bened ha nce he nclaimed dividend is ranserred IEPF, as abve, n claim shall lie in respec here. the dividend rhe Financial year ended March 31, 2004, i n claimed, will be ranserred he aresaid accn n r aer ocber 4,2011.

g) Fr he cnvenience he Members and r prper cndc he Meeing, enr he place he Meeing will bereglaed b he Aendance Slip, which is annexed he Prx Frm. Members are reqesed ax heir signare a heplace prvided n he Aendance Slip and hand i ver a he enrance.

h) Members can avail he nminain acili, nder Secin 109A he Cmpanies Ac, 1956 b ling Frm N.2B wih heCmpan. Blank rms will be spplied n reqes.

i) I an he members are hlding shares in he same name r in he same rder names, nder dieren lis, henmembers are reqesed ni he same tSR Darashaw Limied a 6-10, Haji Msa Parawala Indsrial Esae, 20,Dr. E. Mses Rad, Mahalaxmi, Mmbai - 400 011 r cnslidain heir sharehlding in a single li.

j) Members are reqesed ni immediael an change address:

TotheirDepositoryParticipants(DPs)inrespectoftheirsharesheldindematform,and

ToTSRDarashawLimitedat6-10,HajiMoosaPatrawalaIndustrialEstate,20,Dr.E.MosesRoad,Mahalaxmi,Mumbai- 400 011, in case he shares being held in phsical rm.

k) In case he Mailing Address menined n his Annal Repr is wih a PINCoDE, Members are reqesed kindlinrm heir PINCoDE he Cmpans Regiser and transer Agen a heir address menined abve.

l) As per Circlars issed b he Minisr Crprae Aairs (MCA) bearing ns. 17/2011 and 18/2011 daed April 21, 2011 andApril 29, 2011 respecivel, members hlding shares in demaerialised rm are reqesed regiser heir email addresseswih heir Depsir Paricipan (DP) and members hlding shares in phsical rm are reqesed regiser heir emailaddresses wih he Cmpan a [email protected] r wih he Regisrar and transer Agens viz. tSR Darashaw Limied [email protected].

under he Ahri he Bard Direcrs

Place : Mmbai H. N. Singh RajpDaed : Ma 2, 2011 Cmpan Secrear

Regtere ce:463, Dr. Annie Besan Rad, Wrli,Mmbai - 400 030


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StAtutoRy REPoRtS Direcrs Repr Managemen Discssin and Analsis Repr n Crprae Gvernance

29Aal Reprt 2010-11

aexue to the notice

EXPLANAtoRy StAtEMENt prsan Secin 173(2) he Cmpanies Ac, 1956.

1. In erms Secin 173 he Cmpanies Ac, 1956, he llwing explanar saemen ses all he maerial acsrelaing Iem N. 7 he accmpaning Nice daed Ma 2, 2011.

2. Iem N. 7

A he meeing he Bard Direcrs held n Jl 24, 2009, Mr. Vina Bansal was appined as a Direcr in CasalVacanc wih eec rm Jl 24, 2009 cased de he demise Mr. M. A. Bakre, Direcr he Cmpan, in erms Secin 262 he Cmpanies Ac, 1956. the Cmpan has received a nice alng wih a depsi ` 500/- as reqiredb Secin 257 he Cmpanies Ac, 1956, rm a member prpsing Mr. Bansal r his appinmen as a Direcr heCmpan liable reire b rain.

the Bard Direcrs recmmends he appinmen Mr. Bansal as a Direcr he Cmpan, liable reire b rain.

Nne he Direcrs excep Mr. Vina Bansal is deemed be cncerned wih r ineresed in he abve reslin.

under he Ahri he Bard Direcrs

Place : Mmbai H. N. Singh RajpDaed : Ma 2, 2011 Cmpan Secrear

Regtere ce:463, Dr. Annie Besan Rad, Wrli,Mmbai - 400 030


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30CEAT Lte

diectosReport

T,

the members

CEAt Limied

the Direcrs presen heir i-secnd repr, geher wih he adied accns r he ear ended March 31, 2011.

` in Crres

mc 31, 2011 mc 31, 2010

Pr bere taxain 33.24 238.99

Prvisin r:

Crren tax 7.14 74.09

Shr/(Excess) Prvisin r earlier ears (0.12) -

Deerred tax 3.94 3.86

Ne Pr 22.28 161.04

Srpls brgh rward rm previs ear 237.31 108.44

Sm available r Apprpriain 259.59 269.48

Apprpriains:

Prpsed Dividend n Eqi Shares 6.85 13.70

Crprae tax n Prpsed Dividend 1.06 2.32

transer General Reserve 1.70 16.15

Balance carried rward 249.98 237.31


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sTATuToRy REPoRTs drectr Reprt Managemen Discssin and Analsis Repr n Crprae Gvernance

31Aal Reprt 2010-11

dividend

the Direcrs are pleased recmmend a dividend ` 2.00 per

eqi share ` 10/- each (i.e. 20 percen) r he nancial ear ended March31, 2011.

Ceats perormanCe

the ear nder review was ne hems challenging in recen imes wihregard raw maerial cs. Naralrbber prices ched an all ime highbh in he inernainal and dmesicmarkes. Pr crp in ke rbberprdcing cnries and srng srge

in demand led an nprecedenedincrease in he price. Naral Rbberand he enire specrm her rawmaerials shwed a rising rend in cssas cmpared he previs ear wihNaral Rbber prices srging p b67 per cen, snheic rbber b 44 percen, carbn black b 14 per cen andnln abric b 16 per cen. the verallbaske raw maerials escalaedb 40 per cen and he pward rendcnines in he crren ear as well.

Wih dmesic cmpeiin inensiingrher, despie bes ers, heCmpan cld n pass n heenire cs increase he csmers.Cnseqenl, margins saw signicanersin and he ne pr declined rm` 161.04 Crres in he previs ear ` 22.28 Crres dring he ear nderreview.

the Cmpans revene saw a grwh 23.5 per cen rm ` 2,808 Crresin he previs ear ` 3,469 Crres

dring he ear nder review. Gdgrwh was visible in all hree markesegmens viz. Replacemen, original

Eqipmen Manacrers (oEM) andExprs. the indsr als grew aab he same rae resling in markeshare he Cmpan remaining a hesame levels.

CEAt cnines be ne he largesexprers res. Wih beer hrsand cnined cs, he Cmpan wasable increase is exprs ` 624Crres, as agains ` 479 Crres r heprevis ear regisering a healhgrwh mre han 30 per cen. the

marke mix r exprs als imprvedsignicanl, leading higher pricerealisain.

the Cmpan has aained greaersrengh in sppl chain managemenand lgisics. Hence, i is nw beerplaced srce and develp alarge base vendrs wh spplnished prdcs nder echnical andmanacring spervisin heCmpan. As a resl, he Cmpan hasscceeded in generaing 23 per cen is revene hrgh srcing. CEAtwill cnine is endeavr explrehe srcing pin imprve ismarke share in ke segmens.

radial plant at halol, GuJarat

the Cmpans sae he ar radialplan wih an verall planned capaci 150 Mt/da a Hall, Gjara hassccessll been cmmissined dringhe ear nder review wih an insalledcapaci 60 Mt/da. Fll capaci

is expeced be cmmissineddring Jl-Sepember 2011 qarer.this is ne he ms ec-riendl

and highl ecien plans in Indiaand will manacre bh trck andBs Radials (tBR) and Passenger CarRadials (PCR). Cmmercial prdcinhas cmmenced rm March 25, 2011which is expeced gradall reach llcapaci ilisain b he end hecrren nancial ear.

Wih he cmmencemen prdcin Radial tres rm he Hall plan,he Cmpan is nw in a psiin caer he rapidl grwing dmesic

marke r Cmmercial and Passengersegmens as well as expli isexensive channels in ke exprmarkes. Ging rward, his plan isexpeced becme he main srce revene r he Cmpan.

Brand aCQuisition

the Cmpan hisricall hadwnership righs n he CEAtrademark in India and 8 her Asiancnries. Dring he ear nder review,he Cmpan sccessll acqired

wrldwide wnership righs heCEAt rademark rm Pirelli & C.S.p.A, Ial r Er 9 millin. Wihhe acqisiin he brand whichis renwned wrldwide, new andhiher nexplred markes will beaccessible he Cmpan and heCmpan wld be in a psiin llexpli he expr marke reslingin increased vlme and beer pricerealisain rm he ear 2012.

The Cpa revee a a grth 23.5 per cet r` 2,808 Crre the prev t ` 3,469 Crre rg the

ear er reve. G grth a vble all three areteget vz. Replaceet, orgal Epet maactrer(oEm) a Eprt.


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32CEAT Lte

industry sCenario and utureoutlook

the Indian ecnm has emerged rmhe glbal nancial crisis remarkabland rapidl, wih a rbs grwh ver 8 per cen. the grwh wasexhibied acrss all segmens he ecnm and he grwh heamive secr has exceededexpecains. the re indsr beingan ancillar he amive secrals experienced increased demand.the re indsr is a uSD 140 billinindsr glball and he Indian treIndsr cmmands a share nl 4.5per cen a uSD 6.8 billin. the indsris prjeced grw a a CAGR ver15 per cen ver he nex ve ears.As he Cmpan embarks n a newphase is jrne, i is beer pised accep new challenges and akell advanage avrable markecndiins. the Cmpan expecs grw a a gd pace in he nex ewears and hpes increase markeshare in all segmens pariclarl PCRand Mrccle.

A dampener n he gd demand

cndiins, hwever, is he raw maerialscenari, pariclarl ha NaralRbber, which is expeced cnine exer pressre n margins in he rsqarer 2012. We are hpel hahe raw maerial prices will sabilisehereaer.

researCh & development

Alng wih he radial plan a Hall,Gjara, he Cmpan has se p anew sae--he-ar-Research andDevelpmen Cenre a he samelcain. this cenre has he mscnemprar eqipmen r esingand develpmen all pes res, inclding res manacredr markes having dicl weahercndiins. this will redce hedependenc he Cmpan nexernal esing cenres and will redcehe need r eld esing res.

the ear 2010-11 als saw signican

R&D ers develp new rawmaerials, new range prdcs andals enhance he qali res.Innvaive lanches rs iskind cnceps in he rck and armcaegr dring he ear nder reviewhave se in min he prcess hgh leadership b CEAt. In ligh he increasing raw maerial css,sccessl ers were made indevelpmen cheaper sbsiesr csl raw maerials wihcmprmising n qali parameers.

this has helped he Cmpan nnl redce cs b als in pimisingmaerial cnsmpin.

assoCiated Ceat kelani venture(J v s l)

the Cmpan has acqired a sake 45.16 per cen in Assciaed CEAtHldings Cmpan Privae Limied(ACHL), he Cmpans invesmenarm in Sri Lanka dring he ear. Wih


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33Aal Reprt 2010-11

Alg th the raal plat at Hall, Garat, theCpa ha et p a e tate--the-art Reearch

a develpet Cetre at the ae lcat. Thcetre ha the t cteprar epet rtetg a evelpet all tpe tre, clgtre aactre r aret havg clteather ct.

his acqisiin, ACHL has becmea whll wned sbsidiar heCmpan. ACHL cnrls 50 per cen

sake in he jin venre cmpan viz.CEAt Kelani Hlding Privae Limiedwhich in rn has hree whll wnedre manacring cmpanies. ACHLcnslidaes 50 per cen he jinvenre in is accns as per SriLankan laws.

Dring he ear nder review, ACHL hasregisered a revene LKR 3,790.83millin dring 2010-11 as cmpared LKR 2,702.66 millin in he previsear, regisering a grwh 51.90 per

cen. Pr aer ax sd a LKR277.89 millin as cmpared praer ax LKR 261.48 millin. theCmpan has dminan marke share inall caegries res.

Conservation o enerGy,teChnoloGy aBsorption, oreiGneXChanGe earninGs and outGo

A saemen giving deails cnservain energ, echnlgabsrpin, reign exchange earningsand g, in accrdance wih heCmpanies (Disclsre Pariclars inhe Repr he Bard Direcrs)Rles, 1988, is annexed here andrms par his repr.

human resourCes

the Cmpan cnines cs nperrmance managemen hrghleveraging he Balanced BsinessScre Card and riggering Clretransrmain. Iniiaives have als

been aken wards driving prdcivihrgh tal Qali Managemen(tQM) and in develping and reaining

criical alen hrgh caching andmenring. the tQM mvemen hasaken rs in he manacring areaand a clre srng cninsimprvemens as well as breakhrghresls are seing in.

the Cmpan has kick-sared acampaign imprvemen in empleeengagemen hrgh MRM Cnneca rm where he p managemen he Cmpan engages wih heemplees n a qarerl basis and

share and exchange views n Cmpanperrmance. the Cmpan has alssared a prgramme rewards andrecgniin r emplees hrghqarerl awards r excellencein perrmance, leadership andimprvemen in crss ncinalcllabrain.

employee statement

In erms Secin 217(2A) heCmpanies Ac, 1956 read wih heCmpanies (Pariclars Emplees)Rles, 1975, as amended, he namesand her pariclars emplees he Cmpan, are reqired bese in his repr. Hwever, as perprvisins Secin 219 (1) (b) (iv) he said Ac, he Annal Reprexclding he aresaid inrmain isbeing sen all he members heCmpan. thse members wh aredesirs baining ll inrmainare reqesed wrie he Cmpan.


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34CEAT Lte

suBsidiary Company

the Minisr Crprae Aairshas vide General Circlar N. 2/2011daed Febrar 8, 2011 granedgeneral exempin rm aaching heaccns and nancial saemens sbsidiar cmpanies as prvided nderSecin 212 (8) he Cmpanies Ac,1956, prvided cndiins speciedin he said Circlar are llled. theCmpan has cmplied wih all hecndiins menined in he abvecirclar. therere, he Annal Accns he whll wned sbsidiar he Cmpan i.e. Assciaed CEAtHldings Cmpan (Privae) Limied(ACHL) have n been annexed his Repr. Hwever, he same arepen r inspecin a he Regiseredoce he Cmpan and als ahe Regisered oce ACHL. Anmember desirs baining hesame ma reqes he Cmpan inwriing.

direCtors

In accrdance wih he Cmpanies Ac,1956 and Aricles Assciain, Mr. H.

V. Genka, Mr. S. Dreswam and Mr.Bansi S. Meha reire b rain andbeing eligible, have ered hemselvesr re-appinmen.

Mr. Vina Bansal was appined asdirecr he Cmpan in he casalvacanc cased de he demise Mr. M. A. Bakre. He wld hld cep he dae his Annal General

Meeing. A Nice has been receivedrm a member prpsing he name Mr. Vina Bansal as Direcr reiring

b rain. Members are reqesed appin Mr. Vina Bansal as Direcr ahis Annal General Meeing and heBard Direcrs recmmends heappinmen Mr. Vina Bansal asDirecr.

Mr. Paras K. Chwdhar was re-appined as he Managing Direcr he Cmpan r a perid rm

Janar 18, 2011 March 31, 2012. thisre-appinmen was apprved b heBard Direcrs a heir meeing

held n ocber 20, 2010 and b hesharehlders vide a reslin passedhrgh Psal Ball n March 11, 2011.

issue o preerentialWarrants

Prsan he Special Reslinpassed b he sharehlders hrghPsal Ball n Sepember 17, 2010, heCmpan has n Sepember 30, 2010issed and alled 17,12,170 Warrans he Prmers n a preerenialbasis cnverible in an eqal nmber eqi shares a a price ` 141.44per Warran. o he said price, 25 percen has been received p-rn a heime allmen i.e. n Sepember 30,2010 and he Warrans are cnveriblein eqi shares a he pin heallees wihin a perid 18 mnhsrm he dae allmen, he las dar cnversin being March 31, 2012.

drg the ear er reve, the Cpa ccellacre rle erhp rght the CEAT

traear r Prell & C. s.p.A, ital r Er 9 ll.


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35Aal Reprt 2010-11

direCtors responsiBilitystatement

Prsan Secin 217 (2AA) heCmpanies Ac, 1956, r Direcrs, he bes heir knwledge and belie,cnrm ha:

i) he applicable AccningSandards have been llwedin he preparain he annalaccns

ii) sch accning plicies have beenseleced and applied cnsisenland sch jdgemens andesimaes have been made ha are

reasnable and prden s as give a re and air view he sae aairs he Cmpan in heBalance Shee as a March 31, 2011and he Pr and Lss Accnr he said nancial ear viz. April1, 2010 March 31, 2011

iii) prper and scien care hasbeen aken r he mainenance adeqae accning recrdsin accrdance wih he prvisins he Cmpanies Ac, 1956 r

saegarding he asses heCmpan and r preveningand deecing rad and herirreglariies

iv) he annal accns have beenprepared n a ging cncern basis.

Corporate GovernanCe

A repr n crprae gvernance,alng wih a cericae rm headirs he Cmpan, regarding he

cmpliance cndiins crpraegvernance, as als he ManagemenDiscssin and Analsis Repr, as

siplaed nder Clase 49 heLising Agreemen, are annexed hisrepr.

auditors

Messrs N. M. Raiji & C., adirs heCmpan, reire a he ensing AnnalGeneral Meeing and being eligible,er hemselves r re-appinmen.

aCknoWledGement

yr Direcrs place n recrd heir

appreciain r he cnined spprand cperain received rm hecsmers, sppliers, dealers, nancialinsiins, banks, members andCenral/Sae Gvernmens wardscndcing he bsiness heCmpan dring he ear nder review.

on behal he Bard Direcrs,

H. V. Genka Paras K. ChwdharVice Chairman Managing Direcr

Place : Mmbai

Daed : Ma 2, 2011


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36CEAT Lte

aexueto the Directors Report

Conservation o enerGy

(a) the Cmpan cnined givemajr emphasis r cnservain energ, and he measres akendring he previs ears werecnined. the Ecienc Energuilisain in each manacring

ni is mnired a he crpraelevel ever qarer, in rder achieve eecive cnservain energ. the signican EnergCnservain measres dring heear were:

Idenicain and mniring perain high energcnsming lad ceners and alsspecic lads like Cmpressrsand Briqee biler ec.

use Energ Ecien Lighing

ssems like t5 lamps, Cmpacfrescen lamps and t8frescen be lighs wihelecrnic ballass

Swiching machines/eqipmen when n in se andswiching lighs in areasn having adeqae acivi bregrping/repsiining heacivi s ha here will n bean wasage energ de lighing

12 Pnemaic his replacedwih elecrical his

Amaic pwer acrcrrecin (KVAR) panelcnneced in plan achieveni pwer acr and redcinin sbseqen energ lss

Insallain cmpressrcnrller ssem

Cenralised Plan lighing circiand xing energ savinglighing cnrller ni

Insallain energ ecienscrew cmpressr in ili area

Replacemen ld cmpressedair pipe lines wih new pipe lines

Banbr 2 speed redcinhrgh recipe

Dal re brner wih VFD

65 was CFL lamp r sreeand dsing area lighing

Cnversin Pnemaicpking drill heads wihelecrmechanicall drill head- 5ns.

Insallain APFC r reacivepwer managemen

Energ ecien ballas in place cpper ballas

Fine ning he Ltransrmer vlages

Inrdced hea recver ni inbriqee biler ssem saveenerg, saved 2 per cen el

Imprved Cndensae recverb 20 per cen

Redcin in seam/prdcinrai b 30 per cen

Replaced tD raps wih ball fapraps

New plae pe hea exchangersinsalled

(b) Addiinal invesmens/Prpsalsr redcin Cnsmpin energ.

Harmnic cnrller Panels

37 kw Cld eed exrder in

place 90 kw BC mill

Cenralised ce lighing circiand xing energ savinglighing cnrller ni

Replacemen ld ineciencmpressr insrmenainair wih energ ecien screwcmpressr

Insallain energ ecienpmps

Cmpressed air linesreplacemen

Energ ecien pmp r HPCWssem

Pnemaic pking machinesdrill heads be replaced wihelecric n remaining machines

Energ ecien screwcmpressrs in place reciprcaing cmpressrs

Maximising he capaciilisain 8 x 10 CFE line

Energ ecien air knie rwaer remving n exrdingline

Cnversin il red bilers gas (PNG) red bilers

Conservation o enerGy, teChnoloGy aBsorption and oreiGn eXChanGe earninGs and outGo.

(Prat t the Cpae (dclre Partclar the Reprt Bar drectr) Rle, 1988)


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37Aal Reprt 2010-11

Replacemen Briqee Bilerwih Gas (PNG) red Biler

New LP dme line r rckpresses

(c) Impac he measres a (a) and

(b) abve r redcin energcnsmpin and cnseqenimpac n he cs prdcin gds.

the abve ers have helped inredcin pwer cnsmpinper kg. prdcin. Hwever, heacal pwer cnsmpin has gnep de change in prdc-mix.

(d) tal energ cnsmpin andenerg cnsmpin per ni

prdcin, as per Frm A.

orm a

2010-11 2009-10

a. poWer and uel Consumption

1. ELECTRiCiTy

(a) Prchae unis (KWH) 9,94,24,200 9,53,72,595

tal Amn (` in Crres) 56.65 49.73

Rae per ni (`) 5.70 5.21

(b) o geerat

(i) thrgh Diesel Generar :

unis (KWH) 2,14,824 2,56,855

unis/ Lire Diesel (KWH) 2.76 2.50

Cs per ni (`) 14.25 13.63

2. uRnACE oiL

Qani ( K.Lrs.) 11,331 11,644

tal amn ( ` in Crres) 29.33 27.59

Average rae ( `per Lire) 25.88 23.69

3. L.s.H.s.

Qani ( K.Lrs.) 3,409 9,212

tal amn ( ` in Crres) 8.80 19.68

Average rae ( ` per Lire) 25.83 21.37

4. BRiquETTEs

Qani (tnnes) 50,429 23,407

tal amn (` in Crres) 27.37 11.55

Average rae ( `per Kg) 5.43 4.94

5. GAsQani (SCM) 60,758 -

tal amn ( ` in Crres) 0.12 -

Average rae (` per SCM) 19.96 -

B. Consumption/ unit o produCtion

(i) Elecrici (KWH/Mt.) 680.67 690.27

(ii) Frnace oil ( Lrs./ Mt) 77.41 84.05

(iii)Briqees (KG / Mt) 344.50 168.96

(iv)Gas (SCM / Mt) 0.42 -

(v) L.S.H.S ( Lrs./ Mt) 23.29 66.49


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39Aal Reprt 2010-11

teChnoloGy aBsorption, adaptation and innovation

1) EoRTs, in BRiE, mAdETowARds TECHnoLoGyABsoRPTion, AdAPTATion AndinnoVATion

Adapain sae he arechnlg r radial passengerand rck res

the bene he abve cld

be realised in erms imprvedre lie and lwer rllingresisance (el ecienc rhe vehicle)

the Rice Special R2 arm re isan innvaive cncep ha hasbeen inrdced and is receivingpsiive csmer respnse

2) BEnEiTs dERiVEd As A REsuLTo THE ABoVE EoRTs E.G.PRoduCT imPRoVEmEnT,

CosT REduCTion, PRoduCTdEVELoPmEnT , EnTRy To nEwmARkETs ETC.

Shrer develpmenal ccler prdc csmisain wihoEMs and develpmen andenabling enr he high echsegmen he majr amanacrers

New prdcs wih higher level perrmance were develpedin main prdc caegries,

PRo series in rck bias,Bland series in ligh rck bias,Gripp and Milaze in Mrccle, Ashman in Farm

Alernaive recipe develpmenr managing vlaili in rawmaerial price and availabili

Redcing dependence nperlem rigin raw maerials

3) in CAsE o imPoRTEd TECHnoLoGy (imPoRTEd duRinG THE LAsT iVEyEARs RECkonEd Rom THE BEGinninG o THE inAnCiAL yEAR)oLLowinG inoRmATion mAy BE uRnisHEd

a) technlg impred Nil

b) year impr N Applicable

c) Has he echnlg been ll absrbed? N Applicable

d) I n ll absrbed, areas where his hasn aken place, reasns here and rePlan acin

N Applicable

oreiGn eXChanGe earninGs and outGo

a) Aciviies relaing exprs, iniiaives aken increase exprs, develpmen new expr markes r prdcs and services and expr plans.

Please reer he main repr.

b) tal reign exchange sed and earned

` in Crres

2010-11 2009-10

i) Freign exchange earned 631.87 482.84

ii) Freign exchange sed 1,225.29 669.55

on behal he Bard Direcrs,

Place : Mmbai H. V. Genka Paras K. ChwdharDaed : Ma 2, 2011 Vice Chairman Managing Direcr


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40CEAT Lte

eConomiC revieW

the Indian ecnm has nce again emerged as ne he ms sccessl perrmers glball wih he GDP grwh 8.6 percen. the grwh has been brad wih a rebnd in he agriclral (5.4 per cen), indsrial (8.6 per cen), and manacringsecrs (9.1 per cen). Alhgh here have been ew hreas and crises in he Indian ecnm de he high raes infainand increase in expenses essenial cmmdiies like d and il, he Indian plic makers are ring a wa ensressainable lng erm grwh.

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

GDP rend* (%) 9.5 9.6 9.3 6.8 8.0 8.6

(Srce: CSo * Grwh in GDP a acr cs a 2004-05 prices)

the pace ecnmic acivi in he cnr is direcl refeced in he re ake b dieren ambile segmens. theprspecs he Indian ecnm have hs agred well r he Indian re indsr.

mgeet

Discussion and Analysis


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sTATuToRy REPoRTs Direcrs Repr maageet dc a Aal Repr n Crprae Gvernance

41Aal Reprt 2010-11

tyre industry revieW

GLoBAL sCEnARio

As April 2011, he Glbal tre marke is wrh apprx uSD 140 billin, wih heoriginal Eqipemen Manacrer (oEM) segmen and replacemen segmencnsiing 30 per cen and 60 per cen respecivel he verall re markes.owing excellen rad inrasrcre, he exen radialisain is mch higher

in he develped nains. the average radialisain levels in he medim heavcmmercial vehicles is arnd 60 per cen, whereas in gegraphies like NrhAmerica and Erpe i is as high as 95 per cen.(Srce: Invesmen Inrmain and Credi Raing Agenc India Limied, April 2011)

GloBal tyre industry Composition (%) (as o eBruary, 2011)

6027

6

412

Passenger Cars and LCVs trcks and Bses Farh Mvers

2 Wheelers Agriclral Aircra

(Srce: CRISIL)

indiAn sCEnARio

the chrnicle Indian re indsr sared in 1926. Since hen, he indsr hasgrwn rapidl, harmnising wih he grwh ambile indsr. A highl capialand raw maerial inensive and predminanl crss pl (r bias) re manacringindsr, prdces all caegries res, excep snw res and aer res. theindsr is dminaed b he rganised secr while he nrganised secr hldscnrl ver biccle res. Aer he absmal perrmance ps slwdwn in Fy2009, he indsr has winessed cnsiderable rebnd in Fy 2010, driven b heecnmic revival, resrgence in ambile demand, rising per capia incme andease ineres raes.

snapshot on the indiantyre industry

`25,000 C tal rnver

`1,430 C Imprs`3,000 C Exprs

5% Glbal re demand

36 Nmber cmpanies

60 Manacring plans

t 10 c accn r85-90% he al prdcin

(Srce: Invesmen Inrmain and Credi Raing

Agenc India Limied, April 2011)

Glbal Tre aret rth appr usd 140 bll, th the oEmeget a replaceet eget ctttg 30 per cet a

60 per cet repectvel the verall tre aret.


44/136

42CEAT Lte

While mre and mre peple p r w-wheelers, vale-wise; he secr issrngl dminaed b he Medim Heav Cmmercial Vehicle (MHCV) and LighCmmercial Vehicle (LCV) segmen, a refecin direcl linked he cnrsecnmic develpmen. Wih greaer access , and inrdcin , ardablePassenger Vehicles (PV), Cars and uili Vehicles (uV) llw a clse secnd. thew-wheeler, hree-wheeler, exprs and her segmens sch as o the Rad(otR), racrs, cnsrcin eqipmen, ec. cllecivel cnsie he remainingpie.

tyre produCtion in india (nb t 000)

ohers 2 Wheeler LCV

Passenger Car trck and Bs

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

100

80

60

40

20

0

(Srce: AtMA, April 2011)

value-Wise seGment alloCation (%)

MHCV LCV

Cars and uVS ohers

62

18

7

13

(Srce: Crisil Research, Febrar, 2011)


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43Aal Reprt 2010-11

industry Composition

REPLACEmEnT mARkET

the replacemen marke dminaes he Indian re indsr accning r 71 percen he al re -ake. this segmen is ms sgh aer in India as iprvides a beer margin cmpared he oEM segmen.

oRiGinAL EquiPmEnT mAnuACTuRERs (oEm)

this segmen cnsies 21 per cen he al marke demand. Wih increasedlanch new cars, he oEM segmen is expeced grw arnd 17-18 per cen in2011-12.

ExPoRTs

Exprs cmprise he remaining 8 per cen. the Indian res are expred mainl Asia, Arica, Middle Eas and Lain America. Cmmercial Vehicle (CV) res dminaehe exprs, wih mre han 60 per cen share, r which he primar exprdesinains are Lain America, uAE, Bangladesh, Iran, Philippines, and Vienam.PV res cnsie arnd 18 per cen he marke demands (expr desinainuAE and Nigeria).(Srce: Invesmen Inrmain and Credi Raing Agenc India Limied, April 2011)

tyre markets Break-up (%)

71

21

8

Replacemen oEM Exprs

(Srce: Crisil Research, Febrar 2011)

industry GroWth (%)

9.810.9

10.410.4

13.1

10.6

2004-05 2009-10 2009-10 2014-15E

oEM Replacemen tal


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44CEAT Lte

RoBusT GRowTH o AuTomoBiLE indusTRy

India cnines cnslidae is psiin in he glbal space. I is he sevenh largesvehicle prdcing nain in he wrld, accning r 5 per cen glbal a prdcin,p rm 1.4 per cen a he beginning 2000. the indsr as a whle is expeced grw arnd 15-20 per cen annall in he cming ears. I expecs PV sales, incldingexprs, ch 5.1 millin nis b 2015. Again, CV sales (which accns r mrehan 70 per cen CEAts al revene) inclding small, medim and large cmmercialvehicles are expeced ch 1.42 millin. the rise in a demand wld increase hedemand r oEM res, which will rher ranspire in replacemen demand in nex wears. the verall demand grwh wld drive revene visibl r re manacrers likeCEAt r nex w ears.(Srce: SIAM, April 2011)

PRoduCTion And sALEs TREnd o indiAn AuTomoBiLE indusTRy

(t nb)

dc 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Prdcin 97,43,503 1,10,87,997 1,08,53,930 1,11,72,275 1,40,57,064 1,79,16,035

Sales 89,06,428 1,01,23,988 96,54,435 97,24,243 1,22,95,397 1,55,13,156

(Srce: Scie Indian Ambile Manacrers, April 2011)

RAdiALisATion

In recen imes, radialisain is he ms impran innvain in re indsr as iimprves driving, saves el and prvides addiinal mileage. In India, he radialisainhas been nl seen in he PV segmen (98 per cen), while he MHCV segmen has nl8.6 per cen radialised res as cmpared he glbal average 65 per cen.

the reasn r lwer radialisain was pr rad inrasrcre and verlading reighcrridrs which made radial res nviable in India. Hwever, he Gvernmen has nwbegn emphasise n he imprvemen rad inrasrcre hrgh is NainalHighwa Develpmen Prgramme. I has als laid crbs agains verlading rcks nmajr reigh crridrs. these measres wld lead a srnger demand r radial resin he cming ears.

radialisation (%)

10095 96

71

57

48

208.6

65

(Srce: CRISIL Research, Febrar 2011)

Wesern Erpe Nrh America

Cenral Erpe Arica Middle Eas Asia

Sh America Asia

Easern Erpe India

Wrld


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45Aal Reprt 2010-11

RAw mATERiALs

the re indsr is highl raw maerial inensive. ths, raw maerials pla a pivalrle in Indian re indsr, cnsiing arnd 72 per cen he cs prdcinand 63 per cen re indsr rnver.

PRiCE ComPosiTion o GEnERAL CommERCiAL TyRE (%)

43

18

11

5

45

5

9

Naral Rbber Nln tre Crd Fabric

Carbn Black Rbber Chemicals

Bl Rbber PBR (Plbadiene Rbber)

SBR (Srene Badiene Rbber) ohers

(Srce: Amive tre Manacrers Assciain, April 2011)

Business overvieW

CEAt Limied is geared mee csmer needs in ever segmen. I ers a widearra res, which inclde heav d trcks and Bses (t&B), Ligh CmmercialVehicles (LCVs), Passenger Cars (PC), earhmvers and rklis (Special segmen),

racrs, railers, scers, mrccles, a-rickshaws and 2/3 wheelers. theCmpan markes faps and bes srced rm parners, hereb becming ane-sp shp caer is wide cnsmer base.

trck and Bs res are he highes cnribr he annal rnver heCmpan (61 per cen). In erms marke segmens, replacemen markecnribes arnd 75 per cen in he pline.


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46CEAT Lte

sEGmEnT-wisE PRoduCT PoRToLio (%)

60

11

10

8

4

7

trcks and Bses 2-3 wheelers

Ligh Cmmercial Vehicles Farm

Car/ Jeep o the Rad and Indsrial Vehicles

mARkET-wisE VALuE BREAkuP (%)

70

14

16

Replacemen oEM Expr

perormanCe overvieW

oPERATionAL oVERViEw

t enrich csmer experience, he Cmpan cninsl expands is range prdcs and services. t aciliae he padd armer, CEAt lanched Indias rsRice Special re (Aashmaan R2) las ear r racrs sed in padd elds.Besides his, he Cmpan was als invlved in he llwing aciviies ac pnvaris learning rm is cnsmer eedback.

nEw PRoduCT LAunCHEs

trck High mileage ; high lad rn re 10.00-20 1 RD 12

LCV Premim Bland Range tres acrss all sizes

Las Mile Rib re in 165 D 12 and 165 D 13 sizes

Mrccle Premim Gripp range acrss ke sizes; Lanched Milaze andZm paerns in selec sizes. Special re r md errain rHer Hnda develped

Passenger New sizes inrdced in Milaze range


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47Aal Reprt 2010-11

CEAT PRo

CEAt acivel rganisesedcainal sessins knwn asCEAt PRo spread awarenessamng rck wners abhe bes bsiness pracices imprve perainal ecienc.the Cmpan has cndced58 sch seminars las earwih exper speakers n lbes,a nance and insrance,

vehicle AMCs, elemaics, andher relaed pics r beercsmer saisacin, reslingin higher pr margins.

Tre servce Cetre (TsC)

the backbne CEAts tBRchannel sraeg, is tre ServiceCenre (rmerl he WheelManagemen Cenre) caers all service reqiremens arck fee wner. the crrenw tSCs prvide end--end

slins csmers b,, service, reread and dispseres a a single pin. theCmpan aims prvide hecnvenience 10 her tSCs inFy 12.

inAnCiAL oVERViEw

Ne sales increased 23 per cenrm ` 2,80,747.60 lacs in 2009-10 ` 3,46,892.25 lacs in 2010-11. the grwh is aribed expanded prdc prli,

increased sales vlme, sperircsmer service and imprvedcapaci ilisain.

Secred lan alms dbledrm ` 31,205.11 lacs in 2009-10 ` 62,413.46 lacs in 2010-11,mainl ilised r Capaciexpansin a Hall andacqisiin CEAt brandrm Pirelli & C. S.p.A, Ial.

operaing expense increasedb 39 per cen becase he54 per cen hike in cs rawmaerials, which impaced he

PAt. PAt decreased rm `16,104.15 lacs in 2009-10

` 2,228.33 lacs in 2010-11.

opportunities and threats

owing increased awareness amngcnsmers and he sead grwh Glbal and Indian ecnm, heambile indsr is all se rrbs grwh, which will in rncnribe healh oEM demand.on he her hand, he grwing

vehicle pplain will agmendemand in he replacemen remarke prprinael. Invesmen ininrasrcre and prjecs NainalHighwa Develpmen Prgrammerher nrres indsr escalain.Besides, he lw radialisain in CVres prvides ample scpe r indsrexpansin. Hwever, increased imprs,especiall cheap Chinese res, inhe Indian trck and Bs radial resegmen pses a cnsiderable hrea he indsr.


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48CEAT Lte

industry risks and ConCerns

inCREAsEd CosT o nATuRAL RuBBER

As res are mainl cmpsed naral rbber (72 per cen he al prdcincs), increased prices highl infence he indsr. tre secr is he largescnsmer rbber (al cnsmpin rbber b re indsr: 60 per cen), wiha mnhl demand 75,000-80,000 nne. thgh he al rbber prdcin isexpeced ch 8.6 lakh nne in Fy 2011, here will sill be a deci 85,000-90,000 nnes. Recen fds in thailand pshed he price rbber a recrdheigh ` 243/kg which is a seris cncern r he whle indsr.

(Srce: the Ecnmic times, March 2011)

monTHLy RuBBER PRiCE moVEmEnT (Prce per kg. `)

2004 2005 2006 2007 2008 2009 2010 2011

n rbbpc - g

250

200

150

100

50

0

(Srce: Reers, March 2011)

non TARi mEAsuREs on imPoRT o TyREs And RAw mATERiALs

thgh impr naral rbbers is nder open General Licence (oGL), hedmesic rbber price is se p b he Gvernmen hrgh he mechanism Minimm Sar Price (MSP). oen, ha leads a dmesic price higherhan he inernainal price. the impr d n naral rbbers is als qie high.

Alernaivel, he csm d n impr res is ver less (nil r Bangladesh,Bhan, Maldives and Nepal). S even i here is scpe r raw maerial impr,he pin is n ver easible r he Indian plaers and he have depend ndmesic rbber prdcin.(Srce: ICRA Repr, Jne 2009)

inCREAsEd CRudE oiL PRiCE

Rising crde il price is als a hrea he re indsr, as carbn, snheicrbber and nln re crds areperlem b-prdcs.

inCREAsEd ComPETiTion

Aer liberalisain, severalmanacrers are expandingglball b acqiring r seing pmanacring bases verseas, whichescalaes dmesic cmpeiin.

unCERTAinTiEs in ExTERnALEnViRonmEnT

the Indian re indsr aces majrcncerns sch as rising infain,rblen ecnmic envirnmen,cmpeiin rm imprs, and rise inineres raes.

outlook

Fllwing sraegies demnsraeCEAts srng mivain and penial capialise he grwh pprniiesprevailing in he indsr.

inCREAsEd PREsEnCE inREPLACEmEnT mARkET To imPRoVEmARGins

Lwer bargaining pwer remanacrers wih oEMs resl ina lw pr margin he segmencmpared he replacemen marke.

CEAt Shppes and CEAt Hbs reslin wider reach amng end sers. thisenhanced accessibili has increasedhe replacemen marke share rCEAt. t leverage he pprniand imprve he verall margin,he Cmpan is gradall shiingwards imprved prdc mix in hereplacemen segmen.


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49Aal Reprt 2010-11

sHiT o CEAT TowARds HiGHER mARGin REPLACEmEnT mARkET (% sale)

ic w g-grc

Fy 2009 Fy 2010

oEM Expr Replacemen

9

15

19

68

18

74

EmPHAsisinG CommERCiAL VEHiCLEs sEGmEnT

CV segmen cnribes mre vale revenes. I herere regisers a higherCAGR cmpared he PV segmen. Mrever, CV res are generall replaced a aninerval 12 14 mnhs, a shrer ime span as cmpared he 24 48 mnhreplacemen perid he PV re. Frher, sage radial res is sill a a sage inanc in CVs, which pens a hge scpe r expansin. CEAt hs capialises nhis pprni wih a greaer cs n CV res. In Fy 2010, mre han 70 per cen he al revene he Cmpan came rm his segmen.

CommERCiAL VEHiCLE(nber Vehcle 000)

exc gw CaGr18.3% 2015

292

384 432570

608459

612

1420

2004 2005 2006 2007 2008 2009 2010 2015E

(Srce: SIAM, April 2011)

PAssEnGER VEHiCLE(nber Vehcle 000)

exc

gw CaGr12.8% 2015

1,119

1,376

1,4851,744

1,9962,174

2,797

5,100

2004 2005 2006 2007 2008 2009 2010 2015E


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50CEAT Lte

CAPACiTy ExPAnsion

till Fy 2010, he capaci CEAtsd a 410 nnes per da. theCmpan has se p a green eld radialmanacring acili a Hall ( 150nnes per da trck and Bs, Ligh

trcks and Passenger Vehicle radials),which will increase he capaci he Cmpan 560 nnes per da.A rher vale addiin 35 nnesper da radial re a Nasik plan isexpeced lead he al prdcin he Cmpan 595 nnes per da bhe end Q4 Fy 2012.

ACquisiTion o BRAnd CEAT RomPiRELLi

the Cmpan has acqired glbal righs CEAt brand rm he Ialian re

maker, Pirelli r Er 9 millin. thisacqisiin is expeced dble heexpr revenes ver he nex hreeears. Prir he said acqisiin, heCmpan was he wner he brandin nine Sh Asian cnries. Pirellihas exclsive righs he CEAtbrand in Erpe, Lain America, Mexicand trke p December 31, 2011,ps which he Cmpan shall havecmplee righs he brand.

risk manaGement

R: Rising raw maerials pricescld cnsiderabl aec hepr margin.

mtgat: CEAts lng presence and

experience in he indsrcnribe he wisdm planning in advance keephe risk he minimm.

R: Demand fcain indieren prdc caegries.

mtgat: Srng presence acrssall re caegries andexensive dmesic andinernainal newrk easeshe risk cnsiderabl.

R: Rising dmesic cmpeiinas well as imprs rmChina.

mtgat: Sperir aer sales service,exended credi peridin addiin he ani-dmping d impsedn Chinese res will helphe Cmpan managedmesic cmpeiin agrea exen.


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51Aal Reprt 2010-11

internal Control systems andtheir adeQuaCy

In an indsr, he prcesses andinernal cnrl ssems pla acriical rle in he healh heCmpan. CEAts well dened

rganisainal srcre, dcmenedplic gidelines, dened ahrimarix and inernal cnrls ensreecienc perains, cmpliancewih inernal plicies and applicablelaws and reglains as well asprecin resrces. Mrever,he Cmpan cninsl pgradeshese ssems in line wih he besavailable pracices. the inernal cnrlssem is spplemened b exensiveinernal adis, reglar reviews bmanagemen and sandard plicies

and gidelines ensre reliabili nancial and all her recrds prepare nancial saemens and herdaa. the managemen inrmainssem prvides imel and accraeinrmain r eecive cnrl.Reprs n ke perrmance indicarsand variance analsis vis--vis hebdges are discssed and acinplans are drawn r prper llw pa reglar Managemen Cmmieemeeings. A each Bard Meeing,perainal reprs are abled aer

being discssed a Adi CmmieeMeeings.

material developments inhuman resourCes

the Cmpan recgnises he vale is wrk rce r cnins grwh.A well drawn recrimen plic, clearldened rles and respnsibiliies,

individal perrmance managemenssems, and perrmance-basedcmpensain plicies aciliae heemplee prgress and encrageinnvaive hinking. the Cmpanhas als idenied reqiremensr raining and develpmenpprniies, bs credibili manpwer as well as bsiness prcess.Sch iniiaives als develp a sense wnership wihin he rganisain.

Cautionary statement

Saemens in he ManagemenDiscssin and Analsis describinghe Cmpans bjecives, prjecins,esimaes, expecains ma berward-lking saemens wihinhe meaning applicable secriieslaws and reglains. Acal reslscld dier maeriall rm hseexpressed r implied. Impranacrs ha cld infence heCmpans perains inclde ecnmicdevelpmens wihin he cnr,demand and sppl cndiins in

he indsr, inp prices, changes inGvernmen reglains, ax laws andher acrs sch as liigain andindsrial relains.


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52CEAT Lte

CopoteGovernance Report

i Company philosophy

the Cmpans philsph nCrprae Gvernance mirrrs is

belie ha principles ransparenc,airness and accnabili wardshe sakehlders are he pillars agd gvernance ssem. the Cmpanbelieves ha he discipline CrpraeGvernance perains ssems, bwhich cmpanies are direced andcnrlled, keeping in mind lng-erm ineress sharehlders,while respecing ineress hersakehlders and scie a large. Iaims align ineress he Cmpanwih is sharehlders and her

ke sakehlders. Accrdingl, hisCmpans philsph exends bendwha is being repred nder hisRepr and i has been he Cmpanscnsan endeavr aain he higheslevels Crprae Gvernance.

this Repr is r cmpliance Clase49 he Lising Agreemen, whichhe Cmpan has enered in wih heSck Exchanges.

ii Board o direCtors

In erms he Cmpans CrpraeGvernance Plic, all sar

and her signican and maerialinrmain inclding inrmainmenined in Annexre IA Clase49 he Lising Agreemen areplaced bere he Bard enable i discharge is respnsibiliies sraegic spervisin he Cmpanwih de cmpliance laws and asrsees sakehlders.

1. ComPosiTion

A presen he Bard Direcrs he Cmpan cnsiss welve(12) members, whm w (2) areExecive Direcrs and en (10)are Nn-Execive Direcrs.

the Chairman, Dr. R. P. Genkais a Nn-Execive Direcr. Mr.Paras K. Chwdhar, he ManagingDirecr and Mr. Anan VardhanGenka, he Dep ManagingDirecr are he ExecivesDirecrs. the Direcrs are eminen

indsrialiss/pressinals wihexperience in indsr/bsiness/

nance/law and bring wih hemhe repain independen

jdgmen and experience, whichhe exercise and als sais hecrieria independence. Hwever,he Bard Direcrs, adping amre exacing view, has decided rea nl he Direcrs, as indicaedin Para II-2 belw, as independendirecrs.

2. BoARd mEETinGs HELdduRinG THE yEAR And

ATTEndAnCE THEREATDring he nancial ear endedMarch 31, 2011, ve (5) meeings he Bard Direcrswere held n April 29, 2010, Jl27, 2010, Sepember 30, 2010,ocber 20, 2010 and

Janar 25, 2011.


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sTATuToRy REPoRTs Direcrs Repr Managemen Discssin and Analsis Reprt Crprate Gverace

53Aal Reprt 2010-11

detal drectr a ther atteace the a Bar meetg a al at the lat Aal Geeral meetg aregve bel:

n Cg

n. B

mg

g

W aGm J 27,

2010

n. dc-

bc

c

n. C

bc

c*

Chairman Member

Dr. R. P. Genka Nn-Execive Nn-Independen 0 N 2 - -

Mr. H. V. Genka Nn-Execive Nn-Independen 5 yes 8 - -

Mr. Paras K. Chwdhar Execive Nn-Independen 5 yes 7 - 2

Mr. Anan Vardhan Genka Execive Nn-Independen 5 yes 5 - -

Mr. Mahesh S. Gpa Nn-Execive Independen 5 yes 13 3 4

Mr. A. C. Chkse Nn-Execive Independen 4 yes 8 - -

Mr. S. Dreswam Nn-Execive Independen 4 yes 6 3 4

Mr. Haigreve Khaian Nn-Execive Independen 1 N 14 - 9

Mr. Bansi S. Meha Nn-Execive Independen 4 yes 14 5 5Mr. Hari L. Mndra Nn-Execive Independen 5 yes 1 1 -

Mr. K. R. Pdar Nn-Execive Independen 3 N 4 - -

Mr. Vina Bansal Nn-Execive Independen 4 yes 1 - -

* onl Adi Cmmiee and Sharehlders/Invesrs Grievance Cmmiee are reckned r his prpse.

3. dETAiLs o diRECToRsPRoPosEd oR APPoinTmEnT/RE-APPoinTmEnT AT THE

oRTHCominG AnnuAL GEnERALmEETinG [PuRsuAnT To CLAusE49 (iV)(G)]

) mr. H. V. Gea

Mr. H. V. Genka is he Chairman RPG Enerprises Limied, ne he leading bsiness grpsin India wih ver uSD 3.7 billinin annal sales. RPG Enerpriseshas ineress in Secrs like

Pwer, tres, transmissin,Reail, technlg andEnerainmen.

Mr. Genka cmes rm he wellknwn amil indsrialiss Klkaa and is he sn Dr. Rama Prasad Genka. Mr.Genka gradaed in Ecnmicsand is an MBA rm IMD,Swizerland. He is Chairman KEC Inernainal Limied, RPGLie Sciences Limied, Zensartechnlgies Limied and ViceChairman CEAt Limied. Mr.

Genka, a pas Presiden he Indian Merchans Chamber(IMC) serves n he Execive

Cmmiee he Federain Indian Chambers Cmmerceand Indsr (FICCI) and is aMember he FndainBard IMD, Lasanne,Swizerland.

He is 53 ears age, marriedand has a sn and a dagher,bh whm are married. Hisineress are ar and sprs.


56/136

54CEAT Lte

other drectrhp

Bajaj Elecricals Limied

Zensar technlgies Limied

KEC Inernainal Limied

RPG Enerprises Limied

Rachem RPG Privae Limied

RPG Lie Sciences Limied

Spencer Inernainal HelsLimied

the Sae Indsrial &Invesmens Crprain Maharashra Limied (SICoM)

meber/Chara the llg Cttee

n C n C mb/C

Caliber Pin Bsiness Slins Limied Adi Chairman

Panaln Reail India Limied Adi Chairman

Panaln Reail India Limied Invesrs Grievance Member

Shaki Sgar Limied Adi Member

Rama Newsprins and Paper Limied Adi Chairman

Hexaware technlgies Limied Adi Member

Hexaware technlgies Limied Invesrs Grievance Member

Mr. Genka is n Chairmanr Member an Adir Sharehlders/InvesrsGrievance Cmmiee.

) mr. s. drea

Mr. S. Dreswam is apressinal banker wih ab35 ears experience. Hehas held a varie senirperainal and adminisraiveassignmens. He was heChairman and ManagingDirecr w large pblicsecr banks- Dena Bank andCenral Bank India, makingsignican cnribin heirgrwh and prgress dring hisenre.

He is crrenl engagedin crprae and nancialcnslanc and is n heBards a ew well knwncmpanies.

other drectrhp

Panaln Reail India Limied

Shaki Sgar Limied

Hexaware technlgies Limied

Caliber Pin Bsiness Slins

Limied

Rama Newsprin & PapersLimied

DSP Black Rck trsee Limied

) mr. Ba s. mehtaMr. Meha is a gradae incmmerce and a Fellw he Insie ChareredAccnans India. Mr.Meha is an accnan inpracice dealing wih axain,accnanc and valain mergers and acqisiins. Heis a direcr n he bards several prminen cmpanies in

India. He has been a direcr he Cmpan since 1996.

other drectrhp

Al Limied

Bhara Bijlee Limied

Cenr Enka Limied

Clarian Chemicals (India)Limied

Gillee India Limied

Hsing Develpmen FinanceCrprain Limied

IL & FS Invesmen ManagersLimied

J. B. Chemicals andPharmaceicals Limied

Nainal Secriies DepsirLimied


57/136


55Aal Reprt 2010-11

Pidilie Indsries Limied

Prcr & Gamble Hgiene andHealh Care Limied

Sasken Cmmnicaintechnlgies Limied

SBI Capial Markes Limied

Sdarshan Chemical IndsriesLimied

udhe India Limied (AlernaeDirecr)

meber/Chara the llg Cttee

n C n C mb/C

Gillee India Limied Adi Member

Hsing Develpmen Finance Crprain Limied Adi Member

Al Limied Adi Member

Cenr Enka Limied Adi Member

Prcr & Gamble Hgiene and Healh Care Limied Adi Member

IL & FS Invesmen Managers Limied Adi Chairman

J. B. Chemicals & Pharmaceicals Limied Adi Chairman

Sdarshan Chemicals Limied Adi Chairman

Sasken Cmmnicain technlgies Limied Adi Chairman

Pidilie Indsries Limied Adi Chairman

v) mr. Va Baal

Mr. Bansal an IAS cer 1969Bach (Maharashra Cadre),reired as Secrear in heDeparmen Chemicals in heGvernmen India.

Bere ha, he served asAddiinal Secrear Cmmerce,Gvernmen India, Chairman,MSEB, Principal Secrear

Indsries and PrincipalSecrear Chie Miniser,Maharashra.

He has represened heGvernmen India in JinCmmissins severalcnries and negiaed heCmprehensive EcnmicCperain Agreemenbeween Gvernmen Indiaand Singapre. Crrenl, he

is wrking as cnslan inReliance Indsries Limied.

Mr. Bansal hlds a Masersdegree in Mahemaics rmhe universi Allahabad,a Diplma in PerlemManagemen rm ArhrDLile, MDI, Bsn in uSand als Diplmas in BsinessAdminisrain and French.

other drectrhpRewas Prs Limied

Navi Mmbai SEZ PrivaeLimied

Mr. Bansal is n a Chairmanr Member an Adir Sharehlders/InvesrsGrievance Cmmiee.

iii Committees o the Board

1. AudiT CommiTTEE

the erms reerence Adi Cmmiee inclde hemaers specied nder Clase49 (II) (D) and (E) he LisingAgreemen as well as in Secin292A he Cmpanies Ac,1956. the erms reerence he Adi Cmmiee, iner alia,inclde he llwing:

1) oversigh he Cmpansnancial repring prcess andhe disclsre is nancialinrmain ensre ha henancial saemens are crrec,scien and credible.

2) Reviewing wih hemanagemen he nancialsaemens a he end heqarer, hal ear and he annalsaemens bere sbmissin


58/136

56CEAT Lte

he Bard r apprval wihpariclar reerence :

a) Maers reqired be incldedin he Direcrs RespnsibiliSaemen which rms par he Bards Repr in erms Clase (2AA) Secin 217 he Cmpanies Ac, 1956.

b) Changes, i an, in accningplicies and pracices andreasns r he same.

c) Majr accning plicies and

pracices and reasns r hesame.

d) Signican adjsmens madein he nancial saemensarising adi ndings.

e) Cmpliance wih he lisingand her legal reqiremensrelaing nancial saemens.

) Disclsre an relaed parransacin.

g) Qalicains, in he dra adirepr.

3) Cnsidering and recmmendinghe appinmen, re-

appinmen, he saradirs, xain headi ee and ee r anher services rendered bhe Sar Adirs andi reqired, he replacemenr remval he SarAdir.

4. Reviewing wih hemanagemen, perrmance he Sar and InernalAdirs and adeqac heinernal cnrl ssems.

5. Reviewing he adeqac he inernal adi ncin, ian, inclding he srcre he inernal adi deparmen,sang and seniri hecial heading he deparmenrepring srcre cverageand reqenc he inernaladi.

6. Discssin wih inernaladirs, an signicanndings and llw p heren.

7. Reviewing he ndings aninernal invesigains b heinernal adirs in maers

where here is sspeced radr irreglari r a ailre inernal cnrl ssems amaerial nare and repringhe maer he Bard.

8. Lking in he reasns rsbsanial deals in pamen he depsirs, debenrehlders, sharehlders andcredirs, i an.

the Cmpan has cmpliedwih he reqiremens

Clase 49 (II) (A) as regardshe cmpsiin heAdi Cmmiee. the Adicmmiee has hree (3)members; Mr. Hari L. Mndra,Mr. S. Dreswam, Mr. MaheshS. Gpa. Mr. Mndra ishe Chairman he AdiCmmiee.

Dring he nancial earended March 31, 2011, r(4) meeings he AdiCmmiee were held n April

29, 2010, Jl 26, 2010, ocber20, 2010 and Janar 25, 2011.

Atteace at the At Cttee meetg

n mb n. mg

Mr. Hari L. Mndra 4

Mr. S. Dreswam 4

Mr. Mahesh S. Gpa 4

Fll qrm was presen a he meeings.

the Adi Cmmiee Meeings are als generall aended b he represenaives Sar Adirs and InernalAdirs, he Managing Direcr, he Dep Managing Direcr, he Chie Financial ocer, Head-Inernal Adi and heGeneral Manager-Accns.

the Cmpan Secrear ncins as he Secrear he Cmmiee.

the mines he meeings he Adi Cmmiee are discssed and aken ne b he Bard direcrs.


59/136


57Aal Reprt 2010-11

2. sHAREHoLdERs/inVEsToRs GRiEVAnCE CommiTTEE

the Cmmiee reviews and deals wih cmplains and qeries received rm he invesrs. I als reviews and deals wihrespnses leers received rm he Minisr Crprae Aairs, he Sck Exchanges and Secriies and ExchangeBard India (SEBI).

the Sharehlders/Invesrs Grievance Cmmiee cmprises hree (3) members, Mr. Mahesh S. Gpa, Mr. S.Dreswam and Mr. Paras K. Chwdhar. Mr. Gpa is he Chairman he Cmmiee.

the Cmpan Secrear ncins as he Secrear he Cmmiee.

Dring he nancial ear ended March 31, 2011, r (4) meeings he Sharehlders/Invesrs Grievance Cmmieewere held n April 29, 2010, Jl 27, 2010, ocber 20, 2010 and Janar 25, 2011.

Atteace at sharehler/ivetr Grevace Cttee meetg

n mb n. mg

Mr. Mahesh S. Gpa 4

Mr. S. Dreswam 4

Mr. Paras K. Chwdhar 4

the sas he cmplains received rm invesrs is as llws

sharehler/ivetr Cplat

s/i C C n.

Cmplains as n April 1, 2010 0

Cmplains received dring 2010-11 7

Cmplains idenied and repred nder Clase 41 he Lising Agreemen 7

Cmplains dispsed dring he ear ended March 31, 2011 7

Cmplains remaining nreslved as n March 31, 2011 0

the Bard has designaed Mr. H. N. Singh Rajp, Cmpan Secrear, as he Cmpliance ocer.

3. REmunERATion CommiTTEEthe Remnerain Cmmiee reviews he remnerain package r he Managing Direcr/Dep Managing Direcrand recmmends i he Bard. the Cmmiee als reviews he Cmmissin paable he Nn-Execive Direcrsand recmmends i he Bard.

the Remnerain Cmmiee cmprises r (4) members, Mr. H. V. Genka, Mr. S. Dreswam, Mr. Hari L. Mndraand Mr. Mahesh S. Gpa. Mr. Genka is he Chairman he Remnerain Cmmiee. this Cmmiee mees hecrieria laid dwn in explanain IV Secin II Par II Schedle XIII he Cmpanies Ac, 1956 and is n rmedprsan Clase 49 he Lising Agreemen, where he rmain he Cmmiee is n mandar.

Dring he nancial ear ended March 31, 2011, hree (3) meeings he Cmmiee were held n April 29, 2010, ocber20, 2010 and Janar 12, 2011.


60/136

58CEAT Lte

nber meetg attete b the meber

n mb n. mg

Mr. H. V. Genka 2

Mr. S. Dreswam 3

Mr. Hari L. Mndra 3

Mr. Mahesh S. Gpa 3

Reerat Plc

Pamen remnerain he Managing Direcr/Dep Managing Direcr is gverned b he Agreemens eneredbeween hem and he Cmpan as apprved b he Bard Direcrs and he sharehlders in erms applicableprvisins he Cmpanies Ac, 1956.

the remnerain srcre Mr. Paras K. Chwdhar, Managing Direcr and Mr. Anan Vardhan Genka, DepManaging Direcr, cmprises salar, perqisies and allwances, cnribins prviden nd, sperannain andgrai.

Dring he ear nder review, apar rm he Siing Fees paid r aending he meeings he Bard and heCmmiees, he Nn-Execive Direcrs have been paid a Cmmissin in recgniin heir services he Bard Direcrs. the said Cmmissin was dl recmmended b he Remnerain Cmmiee and apprved b he Bard Direcrs. the Sharehlders have vide heir Special Reslin passed n Jl 25, 2008 apprved he pamen heCmmissin.

drectr Reerat

n-Eectve drectr

dcr w

dc ( )

sg g 2010-11

(a fg `)

C p n-excdc 2009-10

(a fg `)

Dr. R. P. Genka, Chairman Faher Mr. H. V. Genka - 2,00,000

Mr. H. V. Genka, Vice-Chairman* Sn Dr. R. P. Genka 1,10,000 1,82,00,000

Mr. Mahesh S. Gpa* - 1,55,000 2,00,000

Mr. A. C. Chkse - 80,000 2,00,000

Mr

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CEAT Annual Report 2010 11

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