sorryto say you are! - RIDDHI SIDDHI

…never havingto say you are

sorry!

2 | Riddhi Siddhi Gluco Biols Limited

"We are an FMCG multinational withmanufacturing units in three regionsof India. We require varying gradesof material of varying quantities withvarying frequency. Possible?"

– A usual Riddhi Siddhi Gluco Biols customer.

Annual Report 2007-08 | 3

Customer service.

Makes seemingly challenging customer requirements

easily possible.

This is also the principal reason why Riddhi Siddhi

Gluco Biols is India’s largest starch and starch

derivatives Company with over 18% market share.

Over the years, the Company has researched

applications. Customised products. Enhanced quality.

Invested proactively. Supplied on demand.

These initiatives have enabled Riddhi Siddhi to drive its

customers’ business ahead.

And, in doing so, its own.

41.02%Promoter’s

holding as on 31 March 2008

3,25,000 MTFinished goods

capacity

900Employees

Rs 239.48croreMarket capitalisationas on 31 March 2008


A snapshot of what we are

Our presence• Promoted by the Ahmedabad-based Chowdhary family in 1992

• Commenced manufacturing operations at Viramgam, Gujarat, in early 1994

• Acquired a manufacturing unit in Gokak (Karnataka) from GlaxoSmithKline India Ltd. in March 1996; acquired the bio-

polymer division of Hindustan Lever Ltd. at Puducherry in September 2005

• Commenced a new manufacturing plant in Pantnagar (Uttarakhand)

• Enjoys a strategic and knowledge-enhancing alliance with global manufacturer Roquette Freres

Our productsWe produce various grades of corn

starch powder, modified starches,

liquid glucose, high maltose corn

syrup (HMCS), dextrose

monohydrate, maltodextrine,

dextrose syrup and related by-

products.

Our recognition • ISO 9001:2000 certification

• Export House certification

Our spread• Headquartered in Ahmedabad, Gujarat

• Manufacturing units in Gokak (Karnataka), Viramgam

(Gujarat), Puducherry and Pantnagar (Uttarakhand)

• Eight marketing offices across the country

• Export presence across 25 destinations

• Shares listed on the Bombay Stock Exchange (BSE)

Our clientsFood and confectionery: Dabur,

Heinz, Wrigley, Cadbury, Perfetti,

Nestle, Parle, Hindustan Unilever,

Vadilal and ITC

Pharmaceutical: Wockhardt, Sun

Pharmaceuticals, Alembic, Biocon,

Lupin Labs and Dr. Reddy’s

Paper: JK Paper, BILT, TNPL and

Century Papers

Textile: Bombay Dyeing and Grasim

Our achievements• The Gokak unit is the single largest corn wet milling

plant in India with a grinding capacity of 750 TPD

• We emerged as India’s best corn wet miller in terms

of quality

• The Uttaranchal unit became the second largest corn

wet miller in India which has a granding capacity of

500 TPD


Over the years Grinding capacity (TPD) Finished goods capacity (mtpa)

PAT (Rs crore)EBIDTA (Rs crore)Revenue (Rs crore)

EPS (Rs)ROCE (%)Cash profit (Rs crore)

95-96 99-00 03-04 07-08

225

250

500

1500

95-96 99-00 03-04 07-08

5.29

11.3

5

22.5

4

54.6

3

95-96 99-00 03-04 07-08

23

83.5

6

156.

46

353.

86

95-96 99-00 03-04 07-08

31,5

00

68,7

00

1,15

,000

3,25

,000

95-96 99-00 03-04 07-08

3.12

2.90

1.50

19.8

9

95-96 99-00 03-04 07-08

11.1

1

8.87

11.3

8

12.7

8

95-96 99-00 03-04 07-08

3.56

5.31

9.89

39.0

1

95-96 99-00 03-04 07-08

4.72

3.09

1.38

17.9

6


PERFORMANCE IS TRANSITORY.

CREDIBILITY IS FOREVER.

This understanding was most faithfully

reflected in our performance for 2007-

08.

We reported flat financial numbers

during the year under review but created

the platform for driving our customers’

interests ahead through a 74% increase

in the installed capacity of finished

goods, the creation of value-added

products and the enlistment of more

new customers.

At Riddhi Siddhi Gluco Biols, it is the

quality of our non-financial numbers

that convinces me that we strengthened

our business in 2007-08 – even though

the numbers may confuse at first glance

– and that we enjoy attractive prospects

going ahead. Some of this potential was

reflected in the last quarter; we reported

a 30.76% increase in our revenues over

the immediately preceding quarter.

Fire fighting Our performance for 2007-08 would

have been in line with our deep

customer and product strengths, but for

a fire at our Gokak plant in May 2007.

This brought production at our largest

facility – constituting around 50% of our

total output – to a halt for seven

months, affecting revenues.

In challenging circumstances, we

requisitioned the services of our

expanded Viramgam facility to ensure

that supplies to most of our customers –

deeply dependent on us – remained on

track. We resumed operations at the

Gokak plant in the third quarter of

2007-08 and immediately scaled

operations to an optimal level by the

close of the financial year under review.

Reaching the topAt Riddhi Siddhi, we are convinced that

adequate supply represents one of the

strongest pillars of customer service.

This supply needs to be progressively

scaled to meet the growing needs of

customers, so that they can continue to

invest in their business, without

worrying about seeking or developing

alternative vendors. Besides, a capacity

expansion gives us a wider operational

flexibility to develop new and high-

quality product varieties for the benefit

of our customers.

In view of this, we embarked on the

commissioning of the 165,000-mtpa

milling plant at Uttarakhand. When it

was commissioned in December 2007,

we reinforced our position as the largest

player in corn starch and derivates in

the sub-continent with a consolidated

milling capacity of 500,000 mtpa.

This plant will be business-enhancing in

a number of ways: we have

commissioned our plant within just 100

kilometres of food and pharmaceutical

customers, enabling us to supply just-

in-time; besides, a 100% tax holiday for


“We are uniquely positioned to caterto varied client needs through ourmulti-located units and a cumulativecapacity that is two times that of thesecond largest player in the Indianmarket.”

Managing Director’s review

Mr. Ganpatraj Chowdhary on the Company’s performance in 2007-08 and its prospects.

the first five years, a 50% tax holiday in

the corresponding five years as well as a

100% exemption from excise duty will

enable us to reinvest our earnings and

grow the business faster for the benefit

of our customers, a virtuous cycle of

growth and prosperity.

Beyond boundaries Traditionally, Asian manufacturers were

dependent on corn imports from the US

and China. But with China emerging as

a net corn importer and the US

curtailing exports to address its captive

appetite for biofuel ethanol, corn prices

increased significantly. This

development affected the viability of a

number of Asian starch manufacturers,

leaving users across a wide geographic

footprint from the Middle East to South

Asia increasingly dependent on Indian

manufacturers.

Indian starch manufacturers have

escaped this global reality for some good

reasons. Corn costs around 15 to 25%

cheaper in India than its corresponding

price in the US (where it is affected

more directly by the conversion of the

crop into biofuel). Besides, US

restrictions on corn exports have

strengthened the competitiveness of

Indian corn and starch exporters. The

proximity of these customers to Asia has

also catalysed the recent customer shift.

OptimismThere is a long-term optimism about our

prospects, reflected in the existing

realities across a number of our

downstream customer segments:

Packaged food industry: Although India

has evolved significantly in the last

number of years, we are still

predominantly a ‘like it fresh’ and ‘like it

hot’ food consuming nation. Packaged

food products still enjoy low acceptance

among India’s 250-million middle-class

and are largely limited to everyday

snacks like biscuits, etc. However,

modern lifestyle – eating-on-the-run –

and aggressive product promotions are

catalysing the annual growth of India’s

packaged food segment to around 20%

[Source: Ministry of Food Processing

Industry] and we believe that as retail

formats become organised and product

choices widen, the packaged foods

business will accelerate. This will drive

the market for our starch products and

derivatives.

Paper: Most Indian paper manufacturers

have incurred large investments over the

last couple of years to graduate to CREP

requirements, warranting a

strengthening of their environment-

management plants, processes and

practices. A relatively modest amount of

the capital expenditure was invested in

fresh capacity creation. Our

understanding is that the next round of

capital investments will be made in

aggressive capacity expansion to

respond to a doubling of the country’s

demand to 17 million mtpa by 2015

(Source: The Hindu Business Line, 28

May 2008). This will widen the market

for our starch products.

Pharmaceuticals: The Indian

pharmaceutical industry is expected to

accelerate at a robust 12-13% in 2008-

09, even as growth in the US and

European markets will slow down

[Source: IMS Health]. The Indian

pharmaceutical industry will not only

address the widening reach of medical

intervention within India, but also the

growing opportunity arising out of the

outsourcing of pharmaceutical

formulations and bulk actives. This will

catalyse the demand for our starch

products and derivatives.

Textiles: The government’s Textile Policy

2000 aims at textile and apparel exports

of USD 50 billion by 2012, garments

accounting for half of it. The share of

the organised sector in the retail


industry is also expected to increase

from 4.1% currently to 15% by March

2011 [Source: Edelweiss Capital]. This

will grow the demand for our starch

products and derivatives.

Confectionery: Between 2006 and

2010, the global confectionery market

is forecasted to increase by over 16% in

value terms, reaching more than

USD 145 bn. Volume sales are

expected to amount to over 17.8 million

tonnes by 2010 [Source: Leatherfood

International]. An extension of this

demand pattern will enhance our

annual offtake from this sector by 15-

20%.

We are also optimistic of our prospects

for the following reasons: the low cost

of corn cultivation in India and the

abundant availability of material, which

represent the building blocks of our

competitiveness. Besides, an increase in

corn prices has strengthened global

starch and derivative realisations, which

will progressively benefit competitive

procurers and producers like us.

The Riddhi edgeAt Riddhi Siddhi, we will reinforce our

core competitiveness through enhanced

capacity utilisation – across the long-

standing and newly commissioned

assets – during the current financial

year.

We are uniquely positioned to cater to

diverse client needs through our pan-

India presence and a cumulative

capacity that is three times our second-

largest player. We possess the unique

status of being the lowest cost producer

in India, translating into a stable,

sustainable and value-accretive

business model for the benefit of our

customers.

We are broadening our portfolio through

the introduction of a wider range of food

and pharmaceutical-centric products

that address the needs of a varied

customer cross-section, enabling us to

grow our numbers and derisk our

presence.

These initiatives are likely to translate

into a topline of over Rs 500 crore in

2008-09 and Rs 700 cr in 2009-10,

enhancing value in the hands of all

those who own shares in our Company.

Mr. Ganpatraj Chowdhary

Managing Director


THERE IS A LONG-TERMOPTIMISM ABOUT OURPROSPECTS, REFLECTEDIN ROBUST EXISTINGREALITIES ACROSS ANUMBER OF OURDOWNSTREAM CUSTOMERSEGMENTS LIKE PACKAGEAND FOOD PROCESSINGINDUSTRY, PAPER,PHARMACEUTICALS,TEXTILES ANDCONFECTIONERIES.

IN THE BUSINESS OF STARCH MANUFACTURE, CUSTOMER

SERVICE STARTS WITH PROXIMITY.

At Riddhi Siddhi, we have reconciled the need to be proximate to raw

material sources on the one hand with a need to be located close to

customers on the other.

Our Karnataka unit is positioned within the ‘corn hub’ of India. It

consumes 10% of the total corn output of that state; 100% of its

total corn requirement is sourced from within Karnataka. Nearly 60%

of its revenues are derived from a radius of 500 km from its location.

The result is the lowest raw material acquisition cost among industry

peers.

Our Uttarakhand unit derived 60% of its revenues from near by

locations.

Our Viramgam unit draws its corn requirement from the nearby corn-

growing states; 50% of its revenues are derived from a radius of 400

km from its location.

Our Puducherry unit is located close to the tapioca growing regions of

Kerala and Tamil Nadu. Being a specialised product manufacturing

unit, it derives its revenues from almost all paper mills located across

the country, especially from the southern part, where many large

paper mills are situated.

Result: Given our scale, our inward and outward transportation costs

are among the lowest in our industry and the turnaround time to

deliver to customers is one of the quickest.

being always close tocustomers and vendors


Customer service is …

UP CLOSE ANDCOMFORTABLE RIDDHI SIDDHI’S FOUR PLANTSARE LOCATED PROXIMATE TONESTLE’S SIX PAN-INDIAFACTORIES, RESULTING INDEPENDABLE PARTNERSHIP.RESULT: THE SWISSMULTINATIONAL HAS BEEN ACOMMITTED AND GROWINGCUSTOMER FOR 10 YEARS.



IN THE BUSINESS OF STARCH MANUFACTURE, CUSTOMER SERVICE MEANS

THAT YOU HAVE ADEQUATE MATERIAL ON HAND TO SERVICE THE

GROWING NEEDS OF LARGE MARKET-DRIVEN CUSTOMERS, AT ANY TIME.

• We grew customers and the market through increased capacities

• We commissioned our Uttarkhand unit (1,65,000 mtpa) in 2007, raising our

total milling capacity to 5 lac mtpa, so far the largest in India


always having capacityon hand to servicegrowing customer needs



Our Uttarakhand plant- a step ahead in

customer service


Capacity: A large 165,000 mtpa

milling capacity. Benefits: Economies

of scale and an adequate capacity to

service a larger number of customers.

Location: A fifth of the Company’s

client base is present within 25 km of

the unit. Benefits: Prompt and

periodic despatches; minimal

customer inventory.

Resource access: Easy access

to quality water as well as low-cost

power from the state grid. Benefit:

Reduction in cost.

Target segment: To avail of the

tax benefits, the food and

pharmaceutical industries are

concentrating more on the northern

zone. The Company expects to

leverage the advantage by targeting

these segments. Benefit: Proposed

setting up of MNC plants in the

region.

Footprint: Effective servicing of

customers in nothern and eastern

India, a region relatively unexplored.

Benefit: Wider regional coverage.

Automation: The Company has

invested towards process automation

to achieve an optimum utilisation of

resources and a better output. The

process is supported by training from

Schneider Electric India (P) Ltd.

Benefit: High process efficiency.

Equipment: Procurement from

brand-enhancing vendors like Alfa

Laval (Sweden), Damas (Denmark),

Andritz Sprout (USA), Etablissements

Denis (France), Larssons Mekaniska

Verkstad (Sweden), Sinteo Impianti

(Italy) and Shimadzu (Asia Pacific)

PTE Ltd. (Singapore). Benefit: High

uptime.

Tax incentive: A 100% tax

holiday for the first five years and

50% tax holiday for the next five

years. No excise duty and a 100 bps

concession in central sales tax.

Benefit: Higher margins.


always innovatingproducts andapplications that takeour customer’sbusiness ahead


IN THE BUSINESS OF STARCH MANUFACTURE, CUSTOMER SERVICE IS WHEN YOUR RESEARCH AND DEVELOPMENT

TEAM UNDERSTANDS THE CUSTOMER’S, PRODUCTS AS WELL AS OUR OWN, EMPOWERING US TO SUGGEST

IMPROVEMENTS.

The Company is in process of developing two grades of starch for the paper industry.

Going ahead, the Company will develop a new grade of meltodextrine to cater to the nutritious niche of the food industry.

FOOD: APPLICATIONS COMPRISETHICKENING OF SAUCES, GRAVIESAND PUDDINGS, VARIOUS BAKERYNEEDS AND PREPARATION OF ICECREAM AND ICE CREAM CONES.

PHARMACEUTICAL: APPLICATIONSIN TABLET COATING, SURGICALGLOVES, ANTIBIOTICS, DRUGFORMULATION AND LIQUIDGLUCOSE.


TEXTILE: APPLICATIONS IN SIZING,FINISHING AND PRINTING.IMPROVES WEAVING EFFICIENCYAND FABRIC STIFFNESS. ENHANCESFINISH AND APPEARANCE.

OTHER INDUSTRIES:APPLICATIONS COMPRISE CORNOIL, POULTRY FEED, ANIMALFEED, MICRO INKS, POWDER,ADHESIVES AND PAINTS.

PAPER:APPLICATIONSENHANCE PAPERSTIFFNESS ANDSMOOTHNESS.

Applications

Products Foods Confectionery Pharmaceutical Paper Textile Leather Industrial Adhesive Animal Oil Brewery Dairy

and and and feeds and products

drink board yarn cake

Native Starch

Modified Starch

Liquid Glucose

High Maltose

Corn Syrup

Maltodextrin

Dextrose Syrup

Dextrose

Monohydrate

Glucose D

By-Products

Steep Liquor

Maize Germs

Maize Oil

Maize Gluten

Maize Fibre

IN THE BUSINESS OF STARCH MANUFACTURE, CUSTOMER SERVICE IS WHEN SUPERIOR

RAW MATERIAL QUALITY ENHANCES THE CUSTOMERS’ BRAND.

At Riddhi Siddhi, we have strengthened quality through the following initiatives:

• Investment of Rs 2.25 cr in state-of-the-art equipment

• An alliance with Roquette Freres, a leading global manufacturer, to enhance product quality

• A certification for the manufacture of IP Grade Starch at the Viramgam unit

Result: Around 70% of the income generated in 2007-08 was through repeat business; around

50% of Riddhi Siddhi’s customers in 2007-08 have worked with the Company for more than five

years.


when there are noquality complaints





IN THE BUSINESS OF STARCH MANUFACTURE, VIABILITY REINFORCES SERVICE

SUSTAINABILITY.

At Riddhi Siddhi, we have reinforced our business model through the following competitive drivers:

Yield: The Company strengthened yield by 100 bps to 66% in 2007-08, generating an

incremental production of 1,500 mtpa and revenues of Rs 3 cr.

Power and fuel cost: The Company invested in a multi-feed (largely bagasse) co-generation plant

at Gokak. The Viramgam unit utilised the abundant lignite. The Uttarkhand unit used rice husk and

coal. The Company’s average power and fuel cost was 9.50% lower than the prevailing national

average.

People efficiency: The automated Uttarakhand unit enjoys a per-person productivity of Rs 1 crore,

25% higher than the national industry average.

Result: Although the price of power and fuel increased, the Company reduced it by 40 bps to

9.50% of the overall revenue in 2007- 08.

when our competitivebusiness modelenhances organisationalsustainability


Process discipline

Step 1: A proper check during corn procurement, ensuring required seed size and colour

as well as a quality check of the area from where the produced corn is acquired

Step 2: A three-stage seed cleaning process to filter impurities

Step 3: A continuous check on the required parameters, while the product is being

processed in the laboratory

Step 4: Another multi-stage check when the materials leave the plant site, ensuring that

there is no deviation in the product being delivered to the client.


This is what ourcustomers have to say

In our eight-year relationshipwith Riddhi Siddhi, we hadan uninterrupted supply ofstarch corn, even whenthere were instances of cornshortage in India.

– Hindustan Unilever

We have been closely associated with Riddhi Siddhi from the time it took over themanufacturing unit ofGlaxoSmithKline India Ltd. TheCompany enjoys large operationsand low raw material procurementcost as it is situated in the cornbelt of India, benefiting usthrough lower costs.

– Godrej-HersheysIn our five-year relationshipwith Riddhi Siddhi, wehave been impressed bytheir preparedness tosupply any time within 24hours.

– Nestle

“” “

”“

”


Since Riddhi Siddhiprovides us withexcellent material quality,we buy 100% of ourmaterial requirementsfrom them.

– Pepsi Foods

Riddhi Siddhi’squality consistencyhas extended theshelf-life of our endproducts.

– ITC

We are procuring around95% of our Maltodextrinrequirements from RiddhiSiddhi for 12 years onaccount of service,competitiveness and quality.

– Wockhardt

Riddhi Siddhi’s robustsupply chain facilitatesdelivery even at a shortnotice.

– Dabur

In our 12-yearrelationship with RiddhiSiddhi, we have seen thelaunch of a number ofinnovative products bythem, without anycompromise in quality orcustomer service.

– Lotte India

“

”

“”

“”

“”

“

”


Highlights, 2007-08

Number-enablers

Net revenue (Rs crore) EBIDTA (Rs crore) PAT (Rs crore) Cash profit (Rs crore)

Operations • Commissioned the Uttarakhand facility with a maize-grinding capacity

of 1,65,000 mtpa; expanded the Viramgam unit capacity from

33,000 mtpa to 85,000 mtpa

• Reported a capacity utilisation of 75% at the Viramgam unit, 58% at

the Gokak unit and 52% at the Uttarakhand unit

• Increased milling from 2,85,000 mtpa to 5,00,000 mtpa

• Improved recovery by 100 bps to 66%

• Converted the Gokak effluent treatment plant into a Biogas generation

unit, reducing fuel costs

Marketing • Increased exports from Rs 11.61 cr in

2006-07 to Rs 23.58 cr

• Marketed products directly in eastern

India

• Marketed over 50% of the product

mix to the food and pharmaceutical

sectors

2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08

332.

65

332.

09

54.3

3

54.6

3

26.7

7

19.8

9 39.2

7

39.0

1


We cannot think of life without starch.”“At Riddhi Siddhi, our unflinching focus pivots around customer delight.This entails a thorough and immensely rich expertise in production andquality control, reinforcing the organisation’s consistent commitmentand quest for quality products and services.

Sampatraj Chowdhary, Chairman, Riddhi Siddhi Gluco Biols Limited


Management discussion and analysis

Global corn production and

consumption

[Source: Karvy Maize Report 2008]

Major corn producing countries

[Source: USDA Report]

Economic overviewIndia is the second-largest emerging

market economy, fourth-largest global

economy and the second-fastest growing

economy. It recorded a 9% growth in

2007-08, strengthening its four-year

CAGR to 8.9%. The country emerged as

a trillion-dollar economy in the first

quarter of 2007-08, one of only 12 such

countries.

GDP growth trend over the years (%)

04-05 05-06 06-07 07-08 4-year

Average

7.5 9.4 9.6 9.0 8.88

Industry overviewStarch is the major carbohydrate reserve

in plant tubers and seed endosperm

where it is found as granules. The largest

source of starch is corn; the other

commonly used sources are wheat,

potato, tapioca and rice. A major

ingredient of human diet for centuries,

starch has now become an industrial raw

material used in the manufacture of

biofuels.

Starch and its derivatives enjoy more than

1,000 known applications. It is used by

the food industry as a sauce and soup

thickener; gel former in puddings,

suspension stabiliser and bodying agent

in baking. It is also used to manufacture

adhesives. The paper industry uses starch

to enhance surface quality. The textile

industry uses it to improve fabric strength.

The baby food and medical preparation

segments use it as a non-sweet, nutritive

agent.

Corn Corn contains about 70% starch, which

is produced through the wet milling

process, involving the grinding of softened

corn and separation of corn oil seeds

(germs), gluten (proteins), fibres (husk),

leading to the generation of pure starch.

The global corn production was higher

than its consumption during 2004-05, its

utility being limited to certain sectors. The

condition has changed thereafter, leading

to higher consumption than production,

strengthening prices. (see chart

alongside)

The US is the world’s largest corn

producer, constituting 43% of the global

production, followed by China at 19%,

Brazil at 7% and the EU at 6%. These

five locations together constitute 75% of

the global production. India stands fifth

with a mere 2% production (see chart on

the next page).

03-0

4

800

600

650

700

750

(mn

tonn

es)

Production

04-0

5

05-0

6

06-0

7

07-0

8

Consumption

United States [43%]

India [2%]

China [19%]

Others [23%]

Brazil [7%]

EU-27 [6%]


The demand for corn strengthened in the

recent years, following an increase in oil

prices and the growing preference for

ethanol as bio-fuel. The increasing

demand for ethanol was reflected in the

growing acreage under corn cultivation. In

2008-09, the use of corn for the

manufacture of ethanol is projected to

increase 28% in the US, claiming 31%

of the total yield.

Corn is the third most important cereal

crop cultivated in India after rice and

wheat. The country stands fifth in the

global corn production. With an

increasing acreage under corn cultivation,

the previous decade saw corn production

in India shooting from 11.5 million mtpa

to 16.9 million mtpa, thanks to an

increasing demand in the food industry,

exports and ethanol, among others (see

chart alongside).

Corn is cultivated across India with

Karnataka accounting for 14%, Andhra

Pradesh 12% and Uttar Pradesh 8% (see

chart alongside).

Corn is cultivated across three seasons in

India, 80-82% being harvested in the

kharif season. In this season, sowing

Maize area and production in India

[Source: Ministry of Agriculture (GOI)]

Maize cultivated across India

[Source: Karvy Report 2008]

The US is the world’s largest corn consumer, accounting for 34.5% of the global

consumption followed by China (19%), EU (8%) and Brazil (5.5%). The EU’s

consumption surpasses production following a rising feedstock and ethanol demand.

India’s miniscule share in the total global consumption is around 2.5%.

Country Production % in total Consumption % in total

(mtpa) production (mtpa) consumption

United States 332.10 43.12 266.84 34.55

China 145.00 18.83 148.00 19.16

EU-27 47.47 6.16 62.10 8.04

Brazil 53.00 6.88 42.50 5.50

India 16.80 2.18 15.70 2.03

Others 175.80 22.83 237.17 30.72

Total 770.17 100.00 772.31 100.00

[Source: USDA Report]Area [million ha]

98-9

9

18

15

12

9

6

3

99-0

0

00-0

1

01-0

2

02-0

3

6.20

11.1

56.

4211

.51

6.61

12.0

46.

5813

.06

6.64

11.1

57.

3414

.98

7.45

14.1

77.

5914

.71

7.77

13.8

58.

6016

.90

03-0

4

04-0

5

05-0

6

06-0

7

07-0

8

Production [million tonnes]

Andhra Pradesh[12%]

Others [40%]

Karnataka[14%]

Madhya Pradesh[6%]

Rajasthan [7%]

Uttarpradesh [7%]

Maharastra[6%]

Bihar [7%]


takes place after the onset of the south-

west monsoon (from June to August). It is

a short duration crops comprising 120

growing days. The remainder is derived

from the Rabi season (October and

November) and summer. According to a

USDA report, India’s domestic corn

consumption is estimated around 15.5

mn mtpa.

Global starch industry The global starch consumption is

estimated at 62 mn mtpa and is

projected to increase to 70 mn mtpa by

2010. In the US, the EU and Japan,

consumption growth is estimated at 1-

2%, while in the rest of the world it is 3-

4% (Source: USDA, EU Commission) and

in India and China it is 4-5%.

Indian starch industry Over half-a-century old, the domestic

industry was initially driven by growing

demands from the textile industry. Over

the years, the industry widened its focus

to produce different starch varieties to

cater to other industries. As textile and

paper industries were the dominant

consumers, the starch units in the initial

years were concentrated in western India.

With rising transportation cost and

widening consumer presence, the units

began to relocate near corn-growing

areas.

The Rs 18-billion Indian starch industry

comprises six players, 16 manufacturing

units and around 40 products, compared

with 1,000 starch and starch derivatives

in the international market. The per

capita consumption of starch products in

India is lower than that in other countries.

(see chart alongside)

Outlook

Per capita consumption

[Source: Root Crop Starch Working

Paper 2006]

INDIA IS EMERGING AS A

PREFERRED DESTINATION FOR

GLOBAL CORN BUYERS, AS

THE COMMODITY HERE IS

CHEAPER BY 25% AT USD 300

PER TONNE COMPARED WITH

THE RATES IN THE US, WHERE

THE PRICES HAVE SHARPLY

GONE UP TO USD 400 PER

TONNE DUE TO ITS DIVERSION

FOR ETHANOL PRODUCTION.

(SOURCE: ECONOMIC TIMES,

18 JUNE 2008). FURTHER,

THE FLOOD SITUATION IN THE

US CLAIMED ABOUT 1.3

MILLION ACRES OF CORN,

WHICH RESULTED IN HIGHER

PRICES AND A LOSS OF

EXPORTS (SOURCE:

BLOOMBERG).

Industry Today Tomorrow

Pharmaceuticals One of the fastest growing Indian

sectors; average annual growth

rate of 11% during 2001-06;

12% industry growth in 2007.

• Potential to reach USD 25 billion

by 2010 (Source: McKinsey)

• Projected 10% of the global

CRAMS market worth around USD

168 billion by 2009 (Source:

Cygnus)

Food industry Rs 4,00,000-crore Indian food

industry growing at over 9%

annually; a fifth of the

USD 550-billion (Rs 22,00,000

crores) US food industry,

although India’s population is

three times that of the US.

Ministry of Food Processing

Industries’ Vision 2015:

• Trebling the size of the

processed food sector

• Increasing the level of

processing of perishables from

6% to 20%

• Value addition expected to

increase from 20% to 35%

• Share in global food trade to

increase from 1.5% to 3%

Star

ch c

onsu

mpt

ion

(kg/

capi

ta)

Income (1000 Int’l $/capita)

25

20

15

10

5

0

30

VietnamIndia

Philippines

Indonesia

China

Thailand

Malaysia

Korea

Taiwan Japan

1 11 21 31 41 51


CORN IS EVERYWHERE

• MILK AT BREAKFAST

• NEWSPAPERS EVERY

MORNING

• CLOTHES FOR THE BOARD

MEETING

• CAR IN THE GARAGE

• BATTERY UNDER THE BONNET

• BISCUITS WITH THE EVENING

CUPPA

• CHOCOLATES FOR THE SWEET

TOOTH

• ADHESIVES THAT BIND

• MEDICINES THAT

REHABILITATE

• ALUMINIUM IN THE COKE CAN

• BEER AT THE BAR

Industry Today Tomorrow

Textile industry India invested Rs 50,000 crore

in the textile industry over five

years. The industry expects to

invest Rs 1, 40,000 cr in the

post-MFA regime.

Eleventh Five-year Plan

(2008-12) projections:

• USD 115-bn market size

• USD 55-bn export target

• USD 60-bn domestic market

• Increase in India’s share in the

world textiles trade from 3% to

8%

• 12 mn additional jobs

• Rs 1,50,600-crore investment

Paper industry The domestic industry remarks

15th in the world, employing

nearly 1.5 mn people, and

contributing around Rs 25 bn to

the government's kitty.

India’s paper demand is

expected to grow at an 8%

CAGR over five years (four times

the global average).


Driving excellence

Supply chainmanagementThe primary raw material for Riddhi

Siddhi is corn. The Company procures all

its corn from within India, one of the 10

largest corn producers in the world. Raw

material accounts for around 60% of the

total operating cost of the Company.

Logistics represent a significant factor

influencing profitability; Riddhi Siddhi

addresses 50% of its corn requirements

from the states of its manufacturing

presence and 22% from within a radius

of 350 kms from its manufacturing

locations, reducing inward transportation

costs.

The Company procures all its corn

requirements from farmers with whom it

shares an extended relationship across

the years. The Company’s large

purchases serve as a security for these

farmers; in turn, it facilitates proximate

purchase for the Company – a win-win

proportion. The Company has procured a

growing quantity of corn every single year

across the last 13 years, catalysing the

prosperity of the regions of its presence.

Around 17% of its raw material was

procured directly from farmers.

Nearly 70% of the corn is procured

between December and March, while the

material is stored across the remaining

part of the year. The Company’s financial

strength and ability to pay upfront for the

material has resulted in the availability of

growing volumes year-on-year. The fact

that the Company accounted for only

15% of Karnataka’s overall corn

production indicates large room for

increasing procurement from within the

state.

Corn starch is integral to the quality and

efficacy of downstream products. A

number of these products possess short

manufacturing cycles and quicker

production batches; correspondingly there

is a growing need to supply corn starch in

relatively smaller and increasingly

frequent batches. Over the years, this has

necessitated a need to be located close to

downstream users, completing the supply

chain loop.

How we are drivingexcellence at ourCompany

Raw material proximity

Less than 100 km (%) 50

Within 100-350 km (%) 22

More than 350 km (%) 28

50

28

22


Driving excellence

OperationsThe Company’s manufacturing units

together produce 3,25,000 mtpa

annually, the largest cumulative installed

capacity in India, two times higher than

its closest competitors.

The commissioning of the Uttarakhand

unit and expansion of the Viramgam unit

in 2007-08 resulted in an increase in the

milling capacity from 2,85,000 mtpa to

5,00,000 mtpa.

The Company reported a 1%

improvement in yield as a result of

superior manufacturing insights from its

technology partner Roquette Freres,

following the implementation of the

Uttarakhand unit. The progressive

investment in technology and automation

in this newly commissioned unit

strengthened the end-product recovery by

0.5%.

The complete power requirement of the

Company’s Gokak unit was met through

captive co-generation (6.2 MW). The

Company leveraged the use of waste

materials like bagasse, lignite and rice

husk to fire boilers.

Production volume over the years

(mt)

DESPITE A FIRE AT THE GOKAK UNIT, WHICH CURTAILED PRODUCTION

FOR SEVEN MONTHS AND THE GRADUAL SCALE-UP OF THE

UTTARAKHAND UNIT, THE COMPANY REPORTED A 65%

CONSOLIDATED UTILISATION ACROSS ALL ITS WET CORN MILLING

PRODUCTION UNITS IN 2007-08.

Milling capacities of various units

Installed capacity (mt) Utilisation (%)

Gokak unit 2,50,000 58

Viramgam unit 85,000 75

Uttarakhand unit 1,65,000 52

03-0

4

04-0

5

05-0

6

06-0

7

07-0

8

91,2

07 1,09

,474

1,33

,665 1,

64,8

71

1,51

,660


Driving excellence

Quality managementAt Riddhi Siddhi, our quality policy

revolves around the customer. The

Company is committed to ensure

customer satisfaction through continual

improvement of the quality management

and food safety systems. The Company

maintains a quality check process right

from raw materials acquisition to

delivering the final product to the client.

Driving excellence

Marketing During 2007-08, the Company

strengthened its pan-India positioning

with the commissioning of its

Uttarakhand facility. This plant

complemented its Viramgam presence in

western India and Gokak presence in

South India. The Uttarakhand facility will

service the growing needs of customers in

eastern India.

The Company’s marketing was driven

through eight branch offices and a 40-

member marketing team. Around 93% of

the Company’s turnover was accounted

for by the domestic market, while exports

accounted for the rest. The Company

strengthened its emphasis on exports to

Japan, Turkey, Bangladesh and the

Middle East. It added 24 new clients

during the year under review.

Realisations per ton over the years (Rs)

2003-04 2004-05 2005-06 2006-07 2007-08

14,496 15,279 15,188 19,161 19,699

Domestic revenue over the years (Rs crore)

2003-04 2004-05 2005-06 2006-07 2007-08

143.51 176.45 214.37 321.04 308.51

Export revenue over the years (Rs crore)

2003-04 2004-05 2005-06 2006-07 2007-08

0.66 7.41 15.50 11.61 23.58

The business pie (%)

Domesticsales[92.9%]

Exports [7.1%]


Highlights, 2007-08Due to the fire at the Gokak unit,

production was hampered for seven

months. Despite this setback, the

Company recorded the following

numbers:

• Total income increased by 0.05%

from Rs 33,299.03 lacs in 2006-07 to

Rs 33,315.35 lacs in 2007-08

• EBIDTA increased by 0.54% from Rs

5,433.38 lacs in 2006-07 to Rs

5,462.77 lacs in 2007-08

• Post-tax profit declined by 28.05%

from Rs 2,702.78 lacs in 2006-07 to

Rs 1,944.53 lacs in 2007-08

• EBIDTA margin increased by 12 bps

from 16.33% in 2006-07 to 16.45%

in 2007-08

• Earnings per share (EPS) declined

from Rs 24.17 in 2006-07 to Rs 17.96

in 2007-08

Accounting policyThe accounts are prepared under the

historical cost convention and on a

going concern basis. All expenses and

incomes to the extent considered

payable and receivable respectively,

unless stated otherwise, were accounted

for on a mercantile basis.

Revenues The Company maintained its income

from business operations, despite a fire

at its Gokak plant. Overall, revenues

were protected due to the following

reasons:

• Capacity expansion at the Viramgam

unit, which serviced the growing

demand from regular clients

• Commissioning of the Uttarakhand

unit in December 2007

• Resumption of operations at Gokak in

October 2007, with 58% capacity

utilisation during the year

Exports Exports constituted 7% of the

Company’s total revenue in 2007-08.

The Company added 12 new global

clients and is looking forward to

increase its presence in the Middle East

and ASEAN.

ExpenditureThe key expenses (raw materials, power

and fuel) cumulatively accounted over

75% of the total expenditure. The raw

material expenditure increased

marginally by 28 bps the previous year

as corn prices hardened by 9%. The

expenditure for power and fuel declined

42 bps over the previous year, following

the use of multi-fuel boilers in the

manufacturing units.

Financial analysis

Interest cover

Cost analysis (as a % of total revenue) bps change (+/-)

Cost head 2006-07 2007-08

Raw materials 60.97 61.25 -28

Power and fuel 9.75 9.33 42

Consumable stores 4.68 4.77 -9

03-0

4

04-0

5

05-0

6

06-0

7

07-0

8

1.82 2.

20

2.78

4.98

4.37


Risk management

Risk, common to all businesses, can be bestdefined as the anticipation of loss. It is a functionof probability and might effect business viability.

AT RIDDHI SIDDHI, OUR RISKMANAGEMENT FRAMEWORK WASDESIGNED WITH THE FOLLOWINGOBJECTIVES:

• IDENTIFY THE POSSIBLE RISKS AND

ASSESS THEIR PROBABLE IMPACT

• EXTEND BEYOND MITIGATION;

TRANSFORM RISKS INTO

OPPORTUNITIES

• DEVELOP A CULTURE WHERE

EMPLOYEES ARE ENTHUSED TO

RESPOND TO RISKS WITH

APPROPRIATE ACTION

• ENHANCE THE EFFECTIVENESS OF

THE INTERNAL AND EXTERNAL

REPORTING STRUCTURE

1

2

Raw material riskInadequate corn supply can potentially affect business.

Mitigation

• The Company strategically commissioned its Gokak facility

amid the Karnataka corn belt, addressing about 50% of the

Company’s total annual corn requirement (post expansion and

post Uttarakhand commissioning). The rest of the Company’s

corn requirements were sourced from Uttar Pradesh, Bihar and

Maharashtra

• The Company’s procurement is based on medium-term

forecasts; the material is procured in two seasons – rabi and

kharif – at competitive rates

• The Company is a preferred buyer for a number of raw

material suppliers due to its credible payment policy

Quality riskQuality non-compliance could affect the Company’s business

because a large part of its product profile is consumed by the

food processing and pharmaceutical industries.

Mitigation

• The Company has instituted multi-step quality checks – from

the procurement of raw materials to the delivery of finished

goods – to hedge against quality aberrations

• The Company enjoys a credible reputation in meeting client

expectations consistently over a decade


3

5

64

• This commitment is reflected in enduring

relationships with leading multinationals like

Nestle, Perfetti, Wrigley, Heinz and Cadbury,

among others

Operations riskThe Company may lose its competitive advantage

due to inefficient operations.

Mitigation

• The Company’s partnership with Roquette Freres

(France) translated into a 100-basis point

improvement in yield in 2007-08

• The Company automated facilities in its plants,

reducing manpower costs

• The Company used the proximately available

bagasse, lignite and rice husk to fire boilers,

ensuring operational seamlessness

Location riskClients may not prefer to procure products from the

Company because of a considerable distance from

manufacturing units.

Mitigation

• The Company enjoys the unique advantage of

posessing plants catering to clients at multiple-

locations across the country

• Almost 70% of the Company’s clients were

situated within a radius of 300 km from the

nearest plant

Geographic riskThe Company may not be able to enhance market

visibility if it concentrates on few regions.

Mitigation

• With the commissioning of the Uttarakhand

facility, the Company now caters to the growing

demand of northern and eastern India, resulting in a

pan-India coverage

• Nearly 93% of the Company’s sales were derived

from within India; the rest was exported to Japan,

Southeast Asia and the Middle East in 2007-08

• Nearly 65% of the Company’s domestic

production was sourced from South India, 10% from

North India and 25% from West India

• The Company expects to increase its export market

Environment riskThe Company might have to face censure if

environmental norms are violated.

Mitigation

• The Company invested over Rs 5 cr in

environment management assets over the two years

leading to 2007-08; around 2.5% of the

Uttarakhand project cost comprised environment

management assets

• The Company commissioned an electrostatic

precipitator to neutralise emissions at its

Uttrakhand plant

• Around 40% of the treated water was recycled


Directors’ Report

Your Directors are pleased to present the seventeenth AnnualReport and audited accounts of your Company for the year ended31 March 2008.

Financial highlights(Rs lacs)

Year ended 31 March 2008 2008 2007

Sales and other operational income 33,208.88 33,264.95

Profit before interest, depreciation and tax (PBIDT) 5,462.77 5,433.38

Less

Financial expenses 1,249.05 1,091.09

Depreciation 1,261.86 1,087.21

Profit before tax 2,951.85 3,255.08

Provision for taxation 1,007.32 552.30

Profit after tax and exceptional items 1,989.26 2,676.52

Amount available for Appropriation 4,477.34 3,405.40

Appropriations

Proposed dividend - Preference capital 40.00 40.00

- Equity capital 334.13 316.69

Tax on dividend (equity and preference) 63.58 60.62

General reserve 500.00 500.00

Balance carried forward 3,539.60 2,488.09

PerformanceThe year under review started with a

persistent buoyant mood. Increase in the

prices of essential commodities and the

sub prime mortgage crisis in the US

triggered a global financial crisis. As a

result, India experienced higher inflation,

increasing interest rates and low

productivity followed by pressure on the

margins across all industries. The

unexpected change in the economy

adversely affected the Indian industries.

Despite a downturn in the Indian

economy, the GDP grew at 9% in 2007-

08, compared to 9.6% in 2006-07.

High growth in the agricultural sector

balanced the overall decline.

Your Company faced the macro

economic challenges as well. Moreover,

in May 2007, the starch plant production

at Gokak was affected due to fire and it

resumed operation from the second week

of October 2007. However, the loss was

partly offset by higher production in the

Viramgam unit, pursuant to the

expansion in capacity and

commissioning of the new state-of-the-

art Uttarakhand project in the last quarter

of this financial year. Considering the

challenges faced, the performance of the

Company remained persistent.

• Your Company achieved a gross

turnover of Rs 35,385.85 lacs for

financial year 2008, marginally lower

than the previous year.

• Produced finished goods at 1,51,660

MT, marginally lower than the previous

year, despite losses in production.

• The PBDIT at Rs 5,462.77 lacs

remained at par with the last fiscal.

• The PAT at Rs 1,989.26 lacs was

lower due to higher provision for

depreciation, interest and taxation.

ExportsThe export turnover in 2007-08 was

higher at Rs 2,358 lacs as against

Rs 1,161 lacs registered in the previous

year. To increase exports, your Company

expanded the capacity of the Viramgam

unit, considering its proximity to the

major ports (Kandla and Mundra) of the

country. Your Company exports its

products to over 25 countries including

Japan, Netherlands, Middle East,

Southeast Asian and African countries,

among others. The management targets

increasing exports to touch 10% of the

total turnover in the next fiscal.

DividendYour Directors have recommended a

dividend of 30% on the enlarged equity

share capital of Rs 1,113.79 lacs

pursuant to the conversion of warrants

issued in March 2006 into equity shares

as per the terms of issue of warrants.

Besides, the Board has also

recommended a dividend of 8% towards

the non-cumulative redeemable

Preference shares. The total outgo

towards the dividend would be

Rs 374.13 lacs (excluding dividend tax).

ExpansionDuring 2007-08, your Company

expanded the Viramgam unit from 100

tpd to 250 tpd of corn grinding. The unit

would focus more on exports by

leveraging the advantage of being closer

to the major ports. The Company also

completed the implementation of the

new state-of-the-art plant located in

Rudrapur, Uttarakhand, having 1500

tpd of corn grinding capacity at a cost of

Rs 125 crore. This unit commenced

operations in the last quarter of the year

under review and is expected to stabilize

by the end of the current financial year.

With the implementation of these

projects, the total corn grinding capacity

of your Company has reached 5 lac

tonnes per annum, the highest in the

industry.

Raw MaterialThe Company’s chief raw material is

corn. Though the country had abundant

corn production (estimated at 18 million


tonnes against 14.5 million tonnes in the

previous season), prices increased due to

diversion of corn towards production of

ethanol and large exports from our

country. The Company took proactive

measures to sustain cost increase and

maintain the margins.

Corporate GovernanceYour Company complied with the

relevant provisions of Corporate

Governance as prescribed in Clause 49

of the Listing Agreement and provisions

of Companies Act, 1965. A report on

compliance of Corporate Governance

forms a part of the Annual Report.

DirectorsMr. Sampatraj L Chowdhary and Mr. R.

Sathyamurthi Directors of the Company,

retire by rotation and being eligible offer

themselves for reappointment.

ListingThe equity shares of your Company are

listed on the Bombay Stock Exchange Ltd

and the Company has paid the listing

and other payable fees for the year

2008-09.

Director’s ResponsibilityStatement As required by Section 217(2AA) of the

Companies Act, 1956, your Directors

state:

• that in the preparation of annual

accounts, applicable accounting

standards have been followed along with

proper explanation relating to material

departures.

• that the Directors have selected such

accounting policies and applied them

consistently and made estimates and

judgements that are reasonable and

prudent, so as to give a true and fair view

of the state of affairs of the Company at

the end of the financial year and of the

profit of the Company for that period.

• that 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.

• that the annual accounts have been

prepared on a going concern basis.

Energy, technology andForeign ExchangeAs a part of continuing efforts to conserve

energy, your Company is implementing a

project for generation of biogas from

effluents. Details of energy conservation,

R&D activities undertaken and Foreign

Exchange earned in accordance with the

provisions of Section 217(1) (e) of the

Companies Act, 1956, are annexed with

this report.

Particulars of employeesEmployees whose remuneration fall

under the provisions of Section 217(2A)

of the Companies Act, 1956, read with

the Companies (Particulars of

Employees) Rules, 1975, and amended

from time to time is annexed with this

report.

AuditorsThe auditors, Mehta Lodha & Company,

Chartered Accountants, retire at the

ensuing Annual General Meeting. The

Company received a letter from them

confirming that their appointment, if

made, would be within the prescribed

limits under Section 224(1-B) of the

Companies Act, 1956.

Auditors have in their report pointed out

that the Company has an internal audit

system commensurate with the size and

nature of its business; however, the same

is required to be further strengthened

with regard to the scope, reporting and its

compliance. The Board is of the opinion

that the scope provided and the present

internal audit system is suitable and

adequately covers the requirements of

Company.

As regards to third party confirmation,

Company through internal controls not

only balances the accounts regularly but

also obtains timely confirmations.

However, all the parties do not respond

the notice of Company for balance

confirmation, but on account of internal

control there are no material variations

from what has been reflected in books of

account.

AcknowledgementsYour Directors place on record their

appreciation for the contributions made

by all employees in the progress of your

Company. Your Directors also take this

opportunity to acknowledge with sincere

gratitude, the support extended by the

Company’s bankers, financial

institutions, business associates and

valued shareholders.

For and on behalf of

the Board of Directors,

Chairman

Place: Ahmedabad

Date: 30 June2008



Directors’ ReportAnnexure to the

Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies(Particulars of Employees) Rules, 1975 and forming part of the Directors' Report for the financialyear ended 31 March 2008

Name Age Designation/ Remuneration Qualification Experience Date of Last %age of (Years) Nature of duties (Gross Rs) (Years) Commencement employment Equity

of employment held shares held

Mr. Sampatraj 55 Chairman – 30,11,000 B.com 30 Since Self- 1.80%L Chowdhary Overall in charge Inception employed

of Gokak unit

Mr. Ganpatraj 45 Managing Director 31,49,743 B.com 20 Since Self- 1.75%L Chowdhary – overall in charge Inception employed

of operations of Company

Power Consumption 2007-08 2006-07

1. Electricity

a. Purchased

Units 26415232 21707025

Total amounut (Rs lacs) 1180.98 1023.40

Rate/ unit 4.47 4.71

b. Own Generations

(i) Through Diesel Generator sets

Units 278812 139160

Units/ ltr of diesel 1.62 2.66

Cost/ unit 19.53 13.14

(ii) Through Steam trubine/ generator (Units) 20745860 23259300

2. Fuel

a. Coal and Lignite

Quantity (MT) 27338 47125

Total cost (Rs lacs) 752.55 1500.58

Average rate/MT (Rs) 2658 3184

b. Agro waste ( Husk & Bagasse)

Quantity (MT) 57647 51305


Average rate/MT (Rs) 1282 858

c. Diesel

Qty (per ‘000 KL) 335.48 420.45


Average rate (Per KL) (Rs) 19633 21178

Consumpt/ MT of production

i) Electricity (kwh/MT) 312.80 273.58

ii) Fuel (MT/mt of Production) 0.56 0.60

A. Company’s philosophy oncode of governance

Good Corporate Governance in any

organisation needs to be principle-based

as well as simple, moral, accountable,

responsive and transparent (SMART).

Your Company believes the same

philosophy to attain the highest

standards of Corporate Governance by

ensuring transparency in all its actions &

operations and to maximise values of its

stakeholders.

The Company recognises its

responsibility towards its shareholders

and therefore constantly endeavors to

create and enhance shareholder’s wealth

and value by implementing its business

plans at appropriate times and thus

taking maximum advantage of available

opportunities to benefit the Company, its

shareholders and society at large.

B. Board of Directors

Board Meetings

The Board of Directors comprises six

Directors out of which three are Executive

Directors and three are Non-Executive

Directors. All Non-Executive Directors are

Independent Directors.

The Company places before the Board all

the relevant and necessary information at

their meetings for the information of the

Board. During the year from 1 April 2007

to 31 March 2008, four Board Meetings

were held on 11 June, 2007, 31 July,

2007, 23 October and 19 January,

2008.


Compliance report oncorporate governance

- None of the Non-Executive Directors of the Company have

any pecuniary relationships or transactions with the

Company, except holding of shares in the Company

- The Non-Executive Directors of the Company are highly

respected and accomplished professionals in the corporate

and academic worlds.

- There is no compensation package for Non-Executive

Directors.

- There is no nominee Director on the board as on 31 March,

2008

- All the information required to be furnished to the Board was

made available to them along with detail agenda notes.

Composition and attendance of each Director at the meetings of the Board and the last AGM

Directors Category and Designation No. of Board No. of Board Last AGM

meetings held meetings attended attendance (Yes/No)

Mr. Sampatraj L. Chowdhary Promoter/ Chairman 4 3 Yes

Mr. Ganpatraj L. Chowdhary Promoter/ Managing Director 4 4 Yes

Mr. Pramodkumar G.Zalani Independent Director 4 3 Yes

Mr. Mukesh Kumar Chowdhary Promoter/ Wholetime Director 4 2 Yes

Mr. R. Sathyamurthi Independent Director 4 3 No

Mr. Marc Roquette Independent Director 4 1 No


Remuneration of Directors

(Rs in lacs)

Directors Salary Perquisites* Sitting fees Total

Mr. Sampatraj L. Chowdhary 24.00 6.11 0 30.11

Mr. Ganpatraj L. Chowdhary 24.00 7.50 0 31.50

Mr. Pramodkumar G Zalani 0 0 0.30 0.30

Mr. Mukesh Kumar Chowdhary 18.00 4.70 0 22.70

Mr. R. Sathyamurthi 0 0 0.40 0.40

Total 66.00 18.31 0.70 85.01

* Perquisites are valued inclusive of contribution to provident fund of Directors

C. Audit CommitteeCompany has formed audit committee comprising of two

Independent Directors and a Managing Director of the Company.

Mr. Pramod Kumar G. Zalani is the chairman and Mr. R.

Sathyamurthi, Mr. Ganpatraj L. Chowdhary are member of audit

committee. Mr. Pramod Kumar G. Zalani, Chairman of audit

committee was present at last Annual General Meeting of the

Company.

The terms of reference and powers of the Audit Committee are

in compliance with the provisions of the Corporate Governance

– Clause 49 of the Listing Agreement and Section 292(A) of the

Companies Act, 1956. Minutes of the committee meetings are

circulated and discussed at the Board meetings.

During the year four meetings of the Audit Committee were held

on 11 June, 2007, 31 July, 2007, 23 October, 2007 and 19

January, 2008 and all the committee members have attended

all the meetings:

Composition, name of members

Name of Directors Category Remarks

Mr. Pramod Kumar G.Zalani Independent Chairman

Mr. Ganpatraj L. Chowdhary Promoter Member

Mr. R. Sathyamurthi Independent Member

D. Remuneration CommitteeComposition, name of members

Name of Directors Category Remarks

Mr. Pramod Kumar G. Zalani Independent Chairman

Director

Mr. Marc Roquette Independent Member

Director

Mr. R. Sathyamurthi Independent Member

Director

H. DisclosuresDisclosures on materially significant related-party transactions:

The Company has incurred related party transactions during the

year same are disclosed in the notes to the accounts in this

Annual Report.

Code of Conduct:

The Code of Conduct for all Board members and senior

management of the Company has been prescribed by the

Company.

Certification under Clause 49 V:

The Managing Director of the Company has furnished the

requisite certificate to the Board of Directors under Clause 49 V

of the Listing Agreement.

Cases of non-compliance/penalties:

There are no non-compliances by the Company on any matter

related to capital markets, during the last three years. Similarly,

there are no penalties or strictures imposed on the Company by

stock exchanges, SEBI or any other statutory authorities on any

matter related to capital markets during the last three years.


Company has formed Remuneration committee comprising of

three Independent Directors of the Company. One meeting of the

Remuneration committee was held during the year. The

remuneration committee considered the salary structure of

senior level persons of the Company and also considered

important appointments made during the year.

E. Investor Grievance CommitteeCompany has formed Investor grievance committee. The

committee oversees the share transfers as well as takes care of

investor grievances.

The members of the Company’s investor grievance committee

are:

Mr. Ganpatraj L. Chowdhary

Mr. P.G. Zalani

Name and designation of compliance officer :

Mr. Mukesh R. Jain, Deputy General Manager (Finance)

- Number of shareholders complaints received, solved and

pending complaints.

Nature of complaints Received Solved Pending

Non-receipt of share

certificates/Refund/Demat 41 41 –

Stock exchange 7 7 –

SEBI 16 16 –

The Company has attended to the most of the investor’s

grievances/correspondence with in a period of 15 days from the

date of the receipt of the same.

F. Share Transfer CommitteeThe Board of Directors has also constituted separately a Share

Transfer Committee for transfer of shares. The Executive

Directors are members of the said Transfer Committee Meeting.

Mostly in every month there are two meetings and the shares are

being transferred to the transferees within a period of one month

as stipulated in the Listing Agreement with stock exchange.

G. General Body MeetingLocation and time for the last three AGMs

Year Ending Date Venue Time No. of special resolutions passed

31 March, 2007 29 September 2007 ATMA Hall, Ashram Road, Ahmedabad 10.00 A.M. NIL

31 March, 2006 12 September 2006 *Chapter of ICSI 10.00 A.M. 3

31 March, 2005 8 July 2005 *Chapter of ICSI 10.00 A.M. 1

*Ahmedabad Chapter of WIRC of ICSI at S-2, B- Tower, Chinubhai tower, Ashram Road, Ahmedabad.

During the period under report the Company had not held any Extraordinary General Meeting.


I. Means of communicationThe Company normally publishes the quarterly results in

Business Standard and Financial Express.

The Company has its own website www.riddhisiddhi.co.in on

which the quarterly results are displayed.

Half yearly results are not sent to the shareholders. The

management discussion and analysis report is attached with

Directors’ Report and form part of the Annual Report.

J. General shareholder information

1. Annual General Meeting:

Date : 30 September 2008

Time : 10.00 A.M.

Venue : I.C.S.I

Chapter – S- 2-B Chinubhai Centre,

Ashram Road, Ahmedabad.

2. Financial calendar: [Tentative]

Financial year : April-March

First quarter results : End July, 2008

Half yearly results : End October, 2008

Third quarter results : End January, 2009

Result for the year ending

31 March 2009 : End April/ June, 2009

3. Book Closure date: (Both days Inclusive)

25 September to 30 September 2008

4. Dividend payment date:

On or before 5 October 2008

5. Listing on stock exchange(s):

Your Company’s shares are listed on

Bombay Stock Exchange Limited

Phiroze Jeejeebhoy Towers,

Dalal Street, Fort, Mumbai -400 001.

Notes:

1. Annual Listing fees for the year 2008 -09 have been duly

paid to the stock exchange.

Stock code:

a) Bombay Stock Exchange Ltd : 524480

b) ISIN with NSDL & CDSL : INE249D01019

6. Market price data and stock performance

Market price data of Bombay Stock Exchange Limited, Mumbai

for the year

2007–08 and Performance of share price in comparison to BSE

Sensex is given below:

Month High Low BSE Sensex

April 2007 286.00 264.00 13872.37

May 2007 288.90 240.10 14544.46

June 2007 296.00 250.00 14650.51

July 2007 288.00 260.05 15550.99

August 2007 294.00 258.60 15318.60

September 2007 288.00 265.00 17291.10

October 2007 280.05 215.00 19387.99

November 2007 269.00 225.00 19363.19

December 2007 275.00 227.50 20286.99

January 2008 309.90 220.00 17648.71

February 2008 275.00 220.00 17578.72

March 2008 240.00 189.00 15644.44

7. Registrars and Transfer Agents

M/s Intime Spectrum Registry Ltd. is the Share Transfer Agent

for entire functions of share registry, both for physical transfers

as well as dematerialisation/rematerialisation of shares, issue of

duplicate/split/consolidation of shares etc.

Shareholders are requested to send their share transfer related

requests at the following address:

Intime Spectrum Registry Ltd.,

211, Sudarshan Complex, Near Mithakhali under Bridge,

Navrangpura, Ahmedabad – 380 009,

Phone No. (079) 2646 5179

E-mail Address: [email protected]

8. Share Transfer Systems

Since the Company’s shares are compulsorily traded in the

demat segment on stock exchanges, bulk of the transfers take

place in the electronic form.

11. Dematerialisation of shares and

liquidity.

The Company’s shares are available for

dematerialisation on both the

Depositories viz. National Securities

Depository Limited (NSDL) and Central

Depository Services Limited (CDSL).

Shares of the Company are compulsorily

traded in the demat form on stock

exchanges by all investors. 56,88,481

shares amounting to 51.06% of the

capital have been dematerialised by

investors and bulk of the transfer takes

place in the demat form.

12. Outstanding GDRs/ADRs/Warrants

or any convertible instruments and

conversion date and likely impact on

equity:

Nil.

13. Plant locations

1. Riddhi Siddhi Nagar

Village Junapaddar,

Taluka-Viramgam

District Ahmedabad (Gujarat)

2. Gokak Falls Road

Gokak – 591307

Dist. Belgaum (Karnataka)

3. Vazhudavoor Road,

Iyyahkuttipalayam,

Pondichery – 605009

4. Uttrnachal

Plot no 12, Sector-9

IIE Pantnagar, Uttranchal

14. Address for correspondence

Shareholders may correspond with the

Company at the Registered Office of

the Company.

The Secretarial Department

Riddhi Siddhi Gluco Biols Limited

701, Sakar – I, Opposite Nehru Bridge

Near Gandhigram Railway Station,

Ashram Road, Ahmedabad – 380 009

The above report has been placed

before the Board at its meeting held on

30 June 2008 and the same was

approved.

Ganpatraj L.Chowdhary

Managing Director

30 June 2008

Ahmedabad


9. Categories of shareholding pattern as on 31 March 2008

Sr. No. Category No. of shares held % age of shareholding

1 Promoters 45,70,240 41.02

2 Mutual Funds 8,662 0.08

3 Banks, Financial Institutions, Insurance Companies 0.00 0.00

4. Foreign Institutional Investor 7,53,477 6.76

5. Private Bodies Corporate 27,93,354 25.07

6. Indian Public 12,57,802 11.29

7. NRIs/ OCBs 17,57,865 15.78

8. GDR / ADR 0.00 0.00

Grand total 1,11,41,400 100.00

10 Distribution of shareholding as on 31 March 2008

No. of equity shares No. of Folio % to total Folios No. of shares % share holding

Less than 500 5,500 91.70 5,09,203 4.57

501 to 1,000 246 4.10 1,97,204 1.77

1,001 to 2,000 98 1.63 1,48,795 1.34

2,001 to 3,000 37 0.62 94,023 0.84

3,001 to 4,000 16 0.27 56,740 0.51

4,001 to 5,000 25 0.42 1,20,722 1.08

5,001 to 10,000 23 0.38 1,89,398 1.70

10,001 to 9,99,99,99,999 53 0.88 98,25,315 88.19

Total 5,998 100.00 1,11,41,400 100.00

The Members of

Riddhi Siddhi Gluco Biols Limited

We have examined the compliance conditions of Corporate Governance by Riddhi Siddhi Gluco Biols Limited for the year ended on

31 March 2008 as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges.

The Compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to

review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the

Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

As required by the guidance note issued by the Institute of Chartered Accountants of India, we state that no investor grievances are

pending unattended for a period exceeding one month against the Company as per the information and explanation given and records

maintained by the Company.

In our opinion and to the best of our information and according to explanation given to us, and the representation made by the

Directors and the Management, we certify that the Company has materially complied with the conditions of Corporate Governance

as stipulated in Clause 49 of the above mentioned listing Agreement.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or

effectiveness with which the management has conducted the affairs of the Company

For Mehta Lodha & Co.

Chartered Accountants

30 June 2008 Prakash D.Shah

Ahmedabad Partner

Membership No.34363

Auditor’s Certificate



Financial section


AUDITORS’ REPORT

1. We have audited the attached Balance Sheet of RIDDHISIDDHI GLUCO BIOLS LIMITED as at March 31, 2008 theProfit and Loss Account and the Cash Flow Statement of theCompany for the year ended on that date, annexed thereto.These financial statements are the responsibility of theCompany's management. Our responsibility is to express anopinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditingstandards generally accepted in India. Those standardsrequire that we plan and perform the audit to obtainreasonable assurance about whether the financialstatements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles usedand significant estimates made by the management, as wellas evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for ouropinion.

3. As required by the Companies (Auditor's Report) Order,2003 as amended by the Companies (Auditor’s Report)Amended order 2004, issued by the Central Government ofIndia in terms of sub-section (4A) of section 227 of theCompanies Act, 1956 and on the basis of such checks aswe considered appropriate and according to the informationand explanation given to us, we enclose in the Annexure astatement on the matters specified in paragraphs 4 and 5 ofthe said Order, for the year under consideration.

4. Further to our comments in the Annexure referred to above,we broadly report that:

i. We have obtained all the information and explanation tothe best of our knowledge and belief, were necessary forthe purposes of our audit;

ii. In our opinion, proper books of account as required bylaw have been kept by the Company so far as appearsfrom our examination of those books;

iii. The Balance Sheet, Profit and Loss account and Cash

Flow Statement dealt with by this report are inagreement with the books of account;

iv. In our opinion, the Balance Sheet, Profit and LossAccount and Cash Flow Statement dealt with by thisreport, read with the notes to accounts and accountingpolicy, comply with the applicable accounting standardsreferred to in sub-section (3C) of section 211 of theCompanies Act, 1956;

v. On the basis of written representations received from thedirectors, as on March 31, 2008 and taken on record bythe Board of Directors, we report that none of thedirectors is disqualified as on March 31, 2008 frombeing appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act,1956;

vi. In our opinion and to the best of our information andaccording to the explanations given to us, the saidaccount read together with the significant accountingpolicies, notes on account and subject to Note No B-3of Schedule–14 of notes to accounts, relating to thirdparty balance confirmations and other disclosures; givethe information required by, the Companies Act, 1956 inthe manner so required and gives a true and fair view

i) In the case of the Balance Sheet, of the state ofaffairs of the Company as at 31st March, 2008, and

ii) In the case of the Profit & Loss Account, of the profitof the Company for the year ended on that date.

iii) In the case of the Cash Flow Statement, of the cashflows for the year ended on that date.

For Mehta Lodha & Co.Chartered Accountants

Prakash D. ShahJune 30, 2008 PartnerAhmedabad Membeship. No. 34363

To The MembersRiddhi Siddhi Gluco Biols Limited


ANNEXURE TO THE AUDITORS’ REPORT

The Annexure referred to in paragraph (3) of the auditors’ report to the members of Riddhi Siddhi Gluco Biols Limited for the yearended March 31, 2008.

We report that: 1. a) The Company has maintained records including

quantitative details and situation of fixed assets.

b) As informed to us, the Company has three yearsphased manner program of physical verification of itsfixed assets by which all fixed assets of the Companyare verified by the management and in pursuance tophased program, during the year the fixed assets offactory at Viramgam (Gujarat) and Uttaranchal havebeen physically verified and as informed to us, nomaterial discrepancy between the available records andthe physical verification have been found.

c) There was no substantial disposal of fixed assets duringthe year.

2. a) The management has conducted physical verificationof inventory at reasonable intervals.

b) The procedures of physical verification of inventoryfollowed by the management are reasonable andadequate in relation to the size of the Company and thenature of its business.

c) The Company is maintaining proper records ofinventory and no material discrepancies were noticedon physical verification.

3. (a) As informed to us, the Company has taken unsecuredloan from the parties covered in the register maintainedunder section 301 of the Companies Act, 1956. Thetotal amount accepted during the year is Rs 349.90lacs from four such parties. The Company has repaidthe loan in its entirety during the financial year andtherefore other details are not required to be stated.

b) In our opinion and according to the information andexplanations given to us, the rate of interest and otherterms and conditions are not prima facie prejudicial tothe interest of the Company.

c) As informed to us, the Company has not grantedunsecured loans to the companies, firms or otherparties covered in the register maintained under section

301 of the Companies Act, 1956.

4. In our opinion and according to the information andexplanations given to us, there are adequate internalcontrol procedures commensurate with the size of theCompany and the nature of its business, with regard topurchase of inventory and fixed assets and for the sale ofgoods. During the course of our audit, no major weaknesshas been noticed in the internal controls.

5. a) Based on the audit procedures applied by us andaccording to the information and explanations providedby the management, we are of the opinion that thetransactions that need to be entered into the registermaintained under section 301 have been so entered.

b) There are no such parties with whom transactionsexceeding value of Rupees five lacs have been enteredinto during the financial year.

6. As informed to us, the Company has not accepted anydeposits from the public.

7. In our opinion, the Company has an internal audit systemcommensurate with the size and nature of its business;however, the same is required to be further strengthenedwith regard to the scope, reporting and its compliance.

8. As informed to us, the Central Government has notprescribed maintenance of cost records under section209(1)(d) of the Companies Act, 1956 in respect of any ofCompany’s product.

9. a) According to the information and explanation given tous and on the basis of our examination of the recordsof the Company, the Company is generally regular, indepositing undisputed statutory dues includingProvident Fund, Investor Education and ProtectionFund, Employees' State Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax, Customs Duty, ExciseDuty, Cess and other statutory dues applicable to it.

b) According to the information and explanations given tous, no undisputed amounts payable in respect ofIncome-tax, Sales-tax, Wealth-tax, Service-tax,


Customs Duty, Excise Duty were outstanding at theyear end for a period of more than six months from thedate they became payable. The particulars of dues as

at the year end, with regard to said items, which havenot been paid on account of disputes, are as follows:-

10. Company does not have any accumulated losses at the endof the financial year and has not incurred any cash lossesin the current and immediately preceding financial year.

11. Based on our audit procedures and on the information andexplanations given by the management, we are of theopinion that the Company has not defaulted in repaymentof dues to financial institution and bank. The Companydoes not have any borrowings by way of debentures.

12. Based on our examination of documents and records andaccording to information and explanation given to us by themanagement, we are of the opinion that the Company hasnot granted any loans and advances on the basis of securityby way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information andexplanations given to us, the nature of activities of theCompany does not attract any special statute applicable tochit fund and nidhi/ mutual benefit fund/societies.

14. The Company has not undertaken any trading in shares anddebentures.

15. In our opinion, the terms and conditions on which theCompany has given guarantees for loans taken by othersfrom banks or financial institutions are, prima facie, notprejudicial to the interest of the Company.

16. According to the information and explanations given to usand on the basis of overall fund flow position, we report thatthe term loans have been applied for the purpose for whichthey were raised.

17. According to the information and explanation given to usand on an overall examination of the balance sheet of theCompany, we report that generally, no funds raised onshort-term basis have been used for long term investmentand no long term funds have been used to finance short-term assets, except working capital.

18. The Company has allotted Equity Shares to the parties orcompanies covered in the register maintained under section301 of the Companies Act, 1956 and the price at whichshares have been issued is not prejudicial to the interest ofthe Company.

19. The Company has not issued any debentures during theyear.

20. The Company has not raised any money through a publicissue during the year.

21. Based upon the audit procedures performed andinformation and explanations given by the management, wereport that no fraud on or by the Company has been noticedor reported during the course of our audit.

For Mehta Lodha & Co.Chartered Accountants

Prakash D. ShahJune 30, 2008 PartnerAhmedabad Membeship. No. 34363

Name of the statute Nature of the dues. Amount Forum where dispute is pending

Income Tax Act Income tax 12.46 lacs Commissioner of Income Tax (Appeals)

Central Excise Act Excise duty 1510.40 lacs Appellate TribunalCommissioner (Appeals)

Gujarat Sales Tax Act Sales Tax 6.81 lacs Gujarat Sales Tax Tribunal

Karnataka Electricity Tax Act Electricity Tax 23.39 lacs Electrical Inspectorate


BALANCE SHEET As at 31st March, 2008(Rs in Lacs)

Schedule As at 31.03.2008 As at 31.03.2007

A. SOURCES OF FUNDS

1. Shareholders' Funds

a. Share Capital 1 1613.79 1555.29

c. Application Money of Shares Warrants 0.00 117.00

d. Reserves & Surpluses 2 16068.50 13082.65

17682.29 14754.94

2. Loan Funds

a. Secured Loans 3 22092.95 18850.40

b. Unsecured Loans 4 2471.10 1209.56

24564.05 20059.96

3. Deferred Tax Liability 1380.06 730.06

43626.40 35544.96

B. APPLICATION OF FUNDS

1. Fixed Assets 5

a. Gross Block 37202.38 24049.60

b. Less:Depreciation 8747.31 7323.45

Net Block 28455.07 16726.14

c. Capital Work in Progress and net advances 41.93 7697.84

28497.00 24423.98

2. Investments 6 14.71 14.50

3. Current Assets, Loans & Advances 7

a. Inventories 8165.57 6410.52

b. Sundry Debtors 6722.11 5740.88

c. Cash and Bank balances 808.43 583.52

d. Loans & Advances 1488.91 496.24

17185.02 13231.16

Less:Current Liabilities and Provisions 8 2070.33 2124.68

Net Current Assets 15114.69 11106.48

43626.40 35544.96

As per our Report of even date attached.

For Mehta Lodha & Co. For and on behalf of he BoardChartered Accountants

Ganpatraj L.Chowdhary Sampatraj L.ChowdharyManaging Director Chairman

Prakash D.Shah R.Sathyamurthi P.G.ZalaniPartner Director Director

Date : June 30, 2008 Mukesh Kumar Chowdhary Place : Ahmedabad Director


PROFIT AND LOSS ACCOUNT For the year ended 31st March, 2008(Rs in Lacs)

Schedule Year ended 31.03.2008 Year ended 31.03.2007

INCOMESales & Other operational income 35385.85 35586.99 Less Excise Duty 2176.97 33208.88 2322.04 33264.95 Other Income 9 106.47 34.08 Increase /(Decrease) in Stocks 10 476.54 106.52

33791.89 33405.55 EXPENDITUREMaterial Cost 21318.30 21004.01 Manufacturing Expenses 11 4358.24 4579.26 Administrative & Office Expenses 12 2652.58 2388.90 Financial Expenses 13 1249.06 1091.09 Depreciation 5 1424.22 1249.57 Less:Withdrawn from Revaluation Reserve 162.36 162.36

1261.86 1087.21 30840.04 30150.47

Net Profit before taxation 2951.85 3255.08 Less: Provision for Taxation

i) Current Tax 334.44 369.00 ii) Fringe Benefit Tax and wealth tax 22.88 20.00 ii) Deferred Tax 650.00 1007.32 163.30 552.30

Profit after Taxation and before exceptional Item 1944.53 2702.78 Add: Adjustment of Earlier Year(s) Income Tax & Fringe Benefit Tax 48.49 (24.44) Add: Excess Provision of dividend and dividend distribution tax written back 0.25 0.08 Less: Prior Period Adjustments 4.01 1.90 Profit after Taxation and exceptional items 1989.26 2676.52 Add: Balance Brought Forward from last year 2488.08 728.87 Amount Available for Appropriations 4477.32 3405.40 Appropriations

– Transferred to General Reserve 500.00 500.00 – Proposed Dividend on Preference Share Capital 40.00 40.00 – Proposed Dividend on Equity Share Capital 334.14 316.69 – Tax on dividend 63.58 60.62

937.72 917.31 Balance Carried to Balance Sheet 3539.60 2488.08 Basic (Rs) 17.96 25.54 Diluted (Rs) 17.96 24.17 Face Value per Share (Rs) 10.00 10.00







SCHEDULES FORMING PART OF THE ACCOUNTS(Rs in Lacs)

As at 31.03.2008 As at 31.03.2007

Authorised120,00,000 (120,00,000) Preference shares of Rs 10/-each 1200.00 1200.00 140,00,000 (140,00,000) Equity Shares of Rs 10/- each 1400.00 1400.00

2600.00 2600.00 Issued, Subscribed & Paid Up CapitalPreference Share Capital50,00,000 (50,00,000) 8% Non Cumulative Redeemable Preference Share of Rs 10 each fully paid up (redeemable at par on November 3,2012 with a put and call option after November 3,2009) 500.00 500.00 Equity Share Capital111,41,400 (105,56,400) Equity Shares of Rs 10/- each fully paid 1114.14 1055.64 Less: Calls in arrears-Other than Directors 0.35 0.35

1113.79 1055.29 1613.79 1555.29

Schedule 1 SHARE CAPITAL

Capital Reservea. Share Premium Account

Balance as per last year 5691.40 1690.00 Addition during the year 1111.50 6802.90 4001.40 5691.40

b. Amalgamation Reserve AccountBalance as per last year 574.05 574.05

c. Government Capital SubsidyBalance as per last year 40.00 40.00 Addition during the year 485.20 525.20 0.00 40.00

d. Revaluation ReserveBalance as per last year 2407.80 2570.16 Less: Withdrawn for depreciation 162.36 2245.44 162.36 2407.80

e. Capital Redemption ReserveBalance as per last year 500.00 500.00

General ReserveBalance as per last year 1381.31 881.31 Addition during the year 500.00 1881.31 500.00 1381.31

Profit And Loss Account 3539.60 2488.08 16068.50 13082.65

Schedule 2 RESERVES & SURPLUSES



As at 31.03.2008 As at 31.03.2007

Term loans from IDBI bank Ltd, Oriental bank of Commerce and Indian overseas bank. 12091.92 11494.27 Secured by first Pari-Passu charged on the present and future fixed assets of the Company, excepting the corporate loan of the Rs 10 crore from O.B.C by first Pari Passu charge in assets of Gokak unit.It is further secured by personal guarantee of the Directors of the Company. Term loan from Standard Chartered Bank is secured against hypothecation of 574.36 334.52 specific Machinery at Gokak plant.Working capital loan from Oriental Bank Of Commerce and Indian Overseas bank,secured by way of the first pari passu charge on current assets of the Company and second charge on entire fixed assets of the Company and further secured by personal guarantee of some of the directors of the Company. 9247.54 7012.68 Working capital loan from banks against pledge of Fixed Deposit of the Banks 169.94 0.00 Hire purchase finance - Secured against Hypothecation of Vehicle financed 9.19 8.93

22092.95 18850.40

Schedule 3 SECURED LOANS

Particulars GROSS BLOCK DEPRECIATION NET BLOCK

As on Addition Deduction As on Addition Deduction As on As on As on

1.4.2007 31.3.2008 1.4.2007 31.3.2008 31.3.2008 31.3.2007

Trade mark 4.07 0.84 0.00 4.91 0.00 0.45 0.00 0.45 4.46 4.07

Leasehold Land 949.10 202.70 0.00 1151.80 0.00 0.00 0.00 0.00 1151.80 949.10

Freehold Land 360.00 0.00 0.00 360.00 0.00 0.00 0.00 0.00 360.00 360.00

Buildings 4130.32 2702.18 0.00 6832.50 1022.57 179.80 0.00 1202.37 5630.12 3107.75

Plant & Machineries 18330.20 10259.07 78.35 28510.92 6210.29 1222.34 0.00 7432.63 21078.29 12119.91

Furniture and Fixtures 183.47 49.43 0.00 232.91 57.48 12.67 0.00 70.16 162.75 125.99

Vehicles 92.43 19.79 2.88 109.33 33.11 8.96 0.37 41.70 67.63 59.32

Total 24049.60 13234.01 81.23 37202.38 7323.45 1424.22 0.37 8747.31 28455.07 16726.14

Previous Year 22214.81 1835.83 1.05 24049.60 6074.70 1249.57 0.82 7323.45 16726.14 16140.11

Schedule 5 FIXED ASSETS

Loans from:– Sales Tax Deferment 1454.27 1209.56 – Body Corporates 1016.83 0.00

2471.10 1209.56

Schedule 4 UNSECURED LOANS



As at 31.03.2008 As at 31.03.2007

Unquoted -Non Trade– National Saving Certificates 5.49 5.28 – 80 (80) IDBI Flexibond face value of Rs 5000/-each 4.00 4.00 – 5000 (5000) equity shares of Vishwas Organics Tech P Ltd. of Rs 100 each 5.00 5.00 Quoted - Trade900 Equity Share of Indian Overseas Bank face value of Rs 10 each 0.22 0.22 (Market value of Quoted Shares Rs 121680/- (Previous year Rs 92700/-)

14.71 14.50

Schedule 6 INVESTMENT

A. Inventories (As valued,verified & certified by the Management)a. Raw Materials 5740.69 5086.89 b. Work In Progress 719.57 276.12 c. Finished goods 526.51 493.42 d. Consumables Stores & fuels 1178.80 554.09

8165.57 6410.52 B. Sundry Debtors (Unsecured and Considered good)

a. exceeding six months 67.84 120.68 b. Others 6654.27 5620.21

6722.11 5740.88 C. Cash And Bank Balances

a. Cash on Hand 33.72 30.25 b. Cash with Scheduled Banks

i. Current Accounts 378.29 326.57 ii. Fixed Deposit Accounts 388.16 213.70 iii. Dividend Unpaid Accounts 8.26 13.01

808.43 583.52 D. Loans And Advances (Unsecured Considered good)

a. Advances recoverable in cash or in kind for value to be received 1145.09 181.46 b. Balances with Excise Department 109.63 126.17 c. Advance Income Tax & Fringe Benefit tax 38.91 3.35 d. Deposits 195.28 185.26

1488.91 496.24

Schedule 7 CURRENT ASSETS LOANS & ADVANCES

Current Liabilitiesa. Sundry Creditors 1479.89 1592.07 b. Trade Deposits & Advances 31.03 15.89 c. Unclaimed Dividend 8.26 13.01 PROVISIONS:a. Proposed Dividend 374.14 356.69 b. Dividend Tax 63.58 60.62 c. Income Tax 21.93 23.49 d. Fringe benefit and Wealth Tax 22.88 12.00 e. Leave Encashment Payable 54.96 35.34 f. Gratuity Payable 13.66 15.57

2070.33 2124.68

Schedule 8 CURRENT LIABILITIES & PROVISIONS



Current Year Previous Year

a. Export incentives 27.03 6.22 b. Insurance Claim 28.21 0.00 c. Profit on sale of fixed Assets 11.75 0.00 d. Bad-Debts Recovered 3.04 13.54 c. Others 36.44 14.31

106.47 34.08

Schedule 9 OTHER INCOME

Opening Stock– Finished goods 493.42 279.46 – Work In Progress 276.12 383.57

769.54 663.03 Closing Stock– Finished goods 526.51 493.42 – Work In Progress 719.57 276.13

1246.08 769.56 Increase/(Decrease) In Stocks 476.54 106.52

Schedule 10 INCREASE/(DECREASE) IN STOCKS

Power & Fuel 2809.35 3037.58 Consumable Stores & Packing Materials 1436.13 1456.99 Freight & Octroi 112.76 84.69

4358.24 4579.26

Schedule 11 MANUFACTURING EXPENSES




Salaries wages & allowances 1276.28 1047.50 Selling & Distribution expenses and Discount 278.19 215.34 Insurance 85.16 104.86 Rent, Rates & Taxes 89.37 85.78 Contribution to provident and other funds 107.04 80.85 Director Remuneration 66.00 66.00 Travelling expenses 77.05 80.23 Claims & Bad-Debts 0.00 68.80 Staff -welfare 107.68 57.17 General expenses 78.53 45.22 Postage, telephone & telegram 45.88 39.91 Security Expenses 44.65 36.34 Legal, professional & consultancy 47.77 44.88 Vehicle running and conveyance 39.53 33.15 Printing & stationary 27.64 24.49 Advertisement 7.09 12.84 Director sitting fees 0.70 0.75 Repair & Maintainence – Plant & Machineries 212.26 321.32 – Building 34.90 15.98 – Others 21.58 3.69 Auditor's remuneration – Audit Fees 4.49 3.00 – Taxation & other matters 0.79 0.79

2652.58 2388.90

Schedule 12 ADMINISTRATIVE & OFFICE EXPENSES

Interest and Financial Charges– On Fixed loans 578.52 505.72 – On Others 733.78 667.13

1312.30 1172.85Less: Interest Income {TDS Rs 1127421/-(P.Y. Rs 1750771/-)} 63.24 81.77

1249.06 1091.09

Schedule 13 FINANCIAL EXPENSES


SCHEDULES FORMING PART OF THE ACCOUNTS

A. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. Accounting Convention:The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomesto the extent considered payable and receivable respectively, unless stated otherwise have been accounted for on mercantileBasis.

2. Fixed AssetsThe Gross Block of fixed assets are shown at cost (net of availed CENVAT) and those which were revalued are stated at revaluedamounts. The cost includes taxes & duties, interest and financial costs and preoperative expenses till such assets are put to use.

Capital work in progress is shown at cost. It includes the amount of capital work in progress, advances for capital goods, debitrecoverable amount of non recurring transaction or an exceptional nature, less liability for capital goods and expenses.

3. Depreciation The Depreciation has been provided as per Schedule XIV of the Companies Act, 1956 on the Straight Line Method (SLM) onthe assets of the Company. Depreciation on revalued amount is provided on SLM and adjusted to revaluation reserves. The rateof depreciation for plant and machinery is provided on continuous process plant basis or at higher rate of depreciation, as maybe decided by the management. In respect of fixed assets acquired during the year, the depreciation is provided on pro-ratabasis.

The amount of Long Term lease hold land is amortised by equal installments during the last fifteen years of the residual leaseperiod.

4. Expenditure During Construction Period In case of new project and substantial expansion of existing factories, direct expenditure incurred, including trial productionexpenses and other cost prior to commencement of commercial production are capitalised.

5. InventoriesFinished goods and raw material are valued at cost or Net realizable value whichever is lower. Goods in transit, Work-in-progress, consumable stores, fuel and chemicals are stated at cost. The cost is determined on FIFO / specific identificationbasis, as applicable.

6. Sales And Other Operational Income: It includes sales value of goods and excise duty.

7. Retirement Benefits:i) Provision for Leave encashment is made on accrual basis at the end of each year.

ii) The Company has opted for the scheme managed by Life Insurance Corporation of India for Gratuity of the employees ofCompany. Gratuity liability under the payment of Gratuity Act is provided and funded on the basis of an actuarial valuationmade at the end of each financial year.

8. Deferred Revenue Expenses & Share Issue Expenses:Preliminary and shares issue expenses have been amortised over a period of 5 years from the end of year in which they wereincurred.

9. InvestmentsLong term investments are stated at cost.

10. TaxationIncome Tax expenses comprises current tax and deferred tax charged or credit, is recognised using current tax rates .Tax onincome for the current period is determined on the basis of taxable income and provision of Minimum Alternate Tax and taxcredits computed in accordance with the provisions of the Income Tax Act 1961 and based on expected outcome ofassessments/ appeals. Where there is an unabsorbed depreciation or carry forward loss, deferred tax assets are recognised onlyif there is virtual certainty of realization of such assets. Other deferred tax assets are recognised only to the extent there isreasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each Balance Sheet date based on

Schedule 14 NOTES ON ACCOUNTS



developments during the year and available case laws, to reassess realization /liabilities.

11. Borrowing CostBorrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of thecost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Allother borrowing cost is charged to revenue.

12. Foreign Exchange TransactionThe transactions in foreign exchange are accounted at the exchange rate prevailing on the date of transaction. Any exchangegains or losses arising out of the subsequent fluctuation are accounted for in the Profit and Loss Account, except those relatingto specific liabilities for acquiring of fixed assets, which are adjusted in the cost of the respective fixed assets. The differencebetween transaction rate, and forward contract rate/ year-end rate, if any, have been accounted on pro-rata basis and chargedto profit and loss account.

13. Impairment Of AssetsThe Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any suchindication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset is lessthan its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairmentloss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previouslyassessed impairment loss no longer exists, the recoverable amount is, reassessed and the asset is reflected at the recoverableamount subject to a maximum of depreciated historical cost.

14. Provisions And Contingent Liablities a) Provisions are recognised when the present obligation of a past event gives rise to a probable outflow, embodying economic

benefits on settlement, and the amount of obligation can be reliably estimated.

b) Contingent Liabilities are disclosed in notes to account, after a careful evaluation of facts and legal aspects of the matterinvolved.

c) Provisions and Contingent Liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current bestestimates.

15. Insurance Claims

Insurance and other claims to the extent considered recoverable are accounted for in the year of claim based on the amountassessed by the surveyor.

However, claims and refunds whose recovery cannot be ascertained with reasonable certainty are accounted for onacceptance/actual receipt basis.

16. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

B. NOTES ON ACCOUNTS

1. The Deferred tax liability as at 31st March 2008 comprises of the following:

2. In the Opinion of the Director, the current assets, loans and advances are approximately of the value stated, if realised in theordinary course of the business & there is no contingent liability other than stated and provisions for all known liabilities areadequately made.

(Rs in Lacs)

Particulars Current Year Previous Year

Opening Deferred Tax Liability 730.06 566.76Add Effect of difference of depreciation 650.00 163.30Balance Deferred Tax Liability (Net) 1380.06 730.06

Schedule 14 NOTES ON ACCOUNTS (Contd.)



3. The balances of loans, capital work in progress, current liabilities, debtors, loans and advances are subject to confirmation andsubsequent clearance of cheques and necessary adjustment/ provisions or proper classification, if any required will be made onits reconciliation.

4. a) The effect of Excise duty of Rs 52.33 lacs (Previous year Rs 48.28 lacs) on stock of finished goods has been given underthe head ‘Excise Duty ’.

b) The amount of capital work in progress consists of capital work in progress and sundry advances of Rs 568.65 lacs(Previous year Rs 8271.51 lacs) and creditors for capital goods of Rs 526.67 lacs (Previous year Rs 573.67 lacs).

c) Amount of bills discounted of Rs Nil (Previous year Rs 70.56 lacs) is reduced from the balance of sundry debtors.

5. The Company has acted as a facilitator for providing the finance to the village level aggregators for purchase of raw materialsand dues of the bank has been reduced from the accounts of suppliers, as the same will be payable to the bank on due dateby the Company on behalf of village level aggregators

6. During the year Maize Starch Drying Plant at Gokak Unit, was damaged and against which Company has Insurance Policy. Asper the insurance Policy, the Company is entitled for the claim of the policy amount of re-instatement of cost of assets andtherefore book value of the assets of Rs 168.82 lacs has been taken out from the value of fixed assets by debiting the insurer.The net effect of cost of re-instatement of assets and insurance claim in accounts will be given on finalization of insurance claimand complete erection of Maize Starch Drying Plant. The effect of net-loss of material in process has been given in the accounts.

7. During the year the Company has been granted capital subsidy for Development of Project from Government of India of Rs 485.2lacs and the same has been credited to Capital Reserve Account.

8. Company is contingently liable for:

(a) Estimated amount of contract remaining to be executed on capital account and not provided for Rs 250.00 lacs(P.Y. Rs 308.87 lacs).

(b) Disputed Income tax liability of Rs 12.46 Lacs (P.Y. 12.46 Lacs) against which appeals are pending before an AppellateAuthority.

(c) Disputed Sales Tax Liability of Rs 6.81 lacs (Previous year Rs 6.81 lacs).

(d) Excise Liability of Rs 1510.40 lacs (Previous year Rs 760.86 lacs) other than interest and penalty on account of disputein classification of products, against which Company has preferred appeals before an Appellate Authority.

(e) Counter Guarantees of Rs 134.27 lacs (Previous year Rs 134.27) given to the bank.

(f) Electricity Tax of Rs 23.39 lacs (Previous Year Rs 23.39 lacs)

(g) Estimated amount relating to disputed labour law matters Rs 3.50 Lacs (Previous year Rs 3.50 Lacs)

9. During the year warrant holders have exercised the option of conversion of 585000 warrants, which were issued on 14/3/2006in to equity shares of Rs 10 each at a premium of Rs 190 per equity shares.

10. Exchange differences on account of fluctuations in foreign currency rates(Rs in Lacs)

Particulars Current Year

Exchange difference gains recognised in the profit and loss account current year(a) Relating to exports during the year as a part of other income, net of expenses on cancellation

of forward contracts 7.36(b) Relating to imports during the year adjusted to the cost of raw material. 6.70(c) On settlement of interest on working capital as a part of credit to "interest on working capital" 90.99(d) On settlement of other transactions including settlement of interest on term loan credited to

"Interest on term Loan'" 66.80Total 171.85




11. The amount of sales tax deferment loan of Rs 1454.26 lacs (Previous Year Rs 1209.56 lacs) shown under the head "UnsecuredLoans ". is subject to final assessment by Commercial Tax Department.

12. Details of Directors Remuneration:

13. The Company has imported/ purchased capital equipment including spares aggregating to US $ 5.69million (Previous Year US $1.357 million) valuing Rs 2286.45 lacs approx. (Previous Year Rs599.76 lacs approx.), under EPCG Scheme. The Company hasstarted fulfilling export obligations, and procedure for closures of completed license with the concerned authorities is in process.

14. During the year, on the basis of records, the Company has capitalised various indirect expenses related to the project, amountingto Rs 1220.92 lacs (Previous year Rs 208.07 lacs).

15. Company is in process to identify the suppliers covered under interest on delayed payments to Micro, Small and MediumEnterprises Development Act 2006.

16. The Company is in process to fill up the post of the Company Secretary.

17. The Company is engaged in Corn-Wet-Milling and as an integrated business of manufacturing Starches and its derivatives,since there is one economical & political condition and exchange control regulation hence does not have a reportable segment,identifiable in accordance with AS- 17, issued by The Institute of Chartered Accountants of India.

18. The Company has opted for the Group gratuity cum life insurance scheme of the Life Insurance Corporation of India (LIC). TheCompany charge actuarial valuation to the profit and loss account. LIC has confirmed that the contribution taken together withthe fund available with LIC in the corpus cover adequately the actuarially valued gratuity liability of the Company, LIC wouldhowever seek replenishment of funds, should the funds get depleted due to abnormal withdrawal in any year.

19. Related Parties Disclosures as identified by the Company:A) Associate Concern


(Rs in Lacs)


Remuneration 66.00 66.00Perquisites 10.39 10.39Contribution to Provident Fund 7.92 7.92

84.31 84.31

Name of the related parties Nature of Relationship

Shreepal Starch Products Associate concernVicas Vehicle Private Limited Associate concernCreelotex Engineering Private Limited Associate concernVascroft Design P.Ltd. Associate concernSafari Biotech P.Ltd Associate concernTelecon Infotech P.Ltd Associate concern

B) Key Management Personnel:Mr. Sampatraj L. Chowdhary ChairmanMr. Ganpatraj L Chowdhary Managing DirectorMr. Mukesh Chowdhary Director

C) Relative of Key Management Personnel (with whom transactions have taken place)Mr. Shrenik Chowdhary RelativeMr. Shreepal Chowdhary Relative



D) Transaction with Associate Concerns


(Rs in Lacs)


(i) Amount received /adjusted 349.90 406.00(ii) Amount given 349.90 406.00

E) Details of Transactions relating to item (B) persons referred to in item (Rs in Lacs)


(i) Remuneration & Perquisites 84.31 84.31(ii) Amount given & received/adjusted 12.89 11.40

F) Details of Transactions relating to item (C) persons referred to in item.

Notes:(a). There are no transaction with Shreepal Strach Products and Telecon Infotech Pvt. Ltd.

(b). Loans taken from Associate concern were interest free and same were settled during the year

(Rs in Lacs)


Remuneration & Perquisites 12.00 12.00

20. Calculation of Earning Per Share

21. Additional information pursuant to the provision of paragraph 3,4C and 4D of Part II of the Schedule VI to the CompaniesAct.(To the extent applicable, certified and taken by the management and as relied upon by the auditors).

(Rs in Lacs)


Profit as per Profit & loss Account available for Equity Shareholders (Rs in lacs) 1942.44 2629.72Average number of equity shares-Basic 10813736 10296756Average number of equity shares-Diluted 10813736 10881756Earning Per Share Basic (Rs) 17.96 25.54Earning Per Share Diluted (Rs) 17.96 24.17

(Rs in Lacs)

Unit Current Year Previous Year

I. Installed Capacity – Starch & Allied Products M.Ton 325000 187000

II. Production & procured from others– Starch & Allied Products M.Ton 151660 164871


SCHEDULES FORMING PART OF THE ACCOUNTSSchedule 14 NOTES ON ACCOUNTS (Contd.)

III. Quantitative Information in respect of Stock, Purchases, Sales & Consumption of Raw Materials.*

* excluding by-products’ quantity

IV) Value of Imports– CIF value of imports: – Capital Goods Rs 305.42 lacs (Rs 599.76 lacs)

– Raw material & Chemicals Rs 182.42 lacs (Rs 281.78 lacs)– Stores & consumables Rs 5.41 lacs (Rs 9.60 lacs) – Technical services & expenditure – 10.84 lacs (Rs Nil)

V) Expenditure in foreign currency– Travelling expenses of Rs 7.16 lacs (Rs 13.74 lacs)

VI) Earning in foreign exchange:– FOB Value of Exports Rs 2358.33 lacs (Rs 1161.15 lacs).

22. Previous year figures have been rearranged or regrouped wherever necessary. Figures in brackets are of previous year.

23. Signed Schedule No. 1 to 14 forms part of the annexed accounts of the Company.

(Rs in Lacs)Particulars Unit As at 31.03.2008 As at 31.03.2007

Quantity* Rs Quantity* Rs

1. (a) Opening Stocksa. Starch & Allied Products M Ton 3821 480.85 1615 279.46b. Maize Grain & others M Ton 80 12.57 – –

3901 493.42 1615 279.46(b) Closing Stocks

a. Starch & Allied Products M Ton 2658 520.86 3821 480.85b. Maize Grain & others M Ton 39 5.64 80 12.57

2697 526.50 3901 493.422. Purchases

Maize Grain & others M Ton 26769 2879.60 17031 2011.563. Sales

a. Starch & Allied Products M Ton 152823 32282.25 162665 33474.43b. Maize Grain & others M Ton 26810 3103.59 16951 2112.56

179633 35385.84 179616 35586.994. Raw Material Consumed

a. Maize Grain M Ton 231017 17457.54 262245 18106.95b. Others - 981.16 – 885.49

231017 18438.70 262245 18992.445. Composition of Raw Material /Stores Consumed Rs % Rs %

Raw Materiala. Imported 182.42 1.53 281.78 1.48b. Indigenous 18256.28 98.47 18710.66 98.52

18438.70 100.00 18992.44 100.00Stores & Consumablesa. Imported 5.41 0.67 9.60 0.66b. Indigenous 1430.71 99.33 1447.39 99.34

1436.12 100 1456.99 100.00

As per our Report of even date attached.For Mehta Lodha & Co. For and on behalf of he BoardChartered Accountants


Prakash D.Shah R.Sathyamurthi P.G.ZalaniPartner Director DirectorDate : June 30, 2008 Mukesh Kumar Chowdhary Place : Ahmedabad Director


CASH FLOW STATEMENT For the year ended 31st March, 2008(Rs in Lacs)

Schedule Year ended 31.03.2008 Year ended 31.03.2007

A. CASH FLOW FROM OPERATING ACTIVITIESNet Profit Before Tax & Extra-Ordinary Items 2951.84 3255.08 Adjusted for :– Depreciation (After transfer from Revaluation Reserves) 1261.50 1087.21 – Profit on sale of fixed assets (11.75) 0.00 – Prior Period Adjustments (4.01) (1.90) – Excess provision of Dividend written back 0.25 0.08 – Financial Expenses Charged 1249.05 1091.09

2495.03 2176.48 Operating Profit Before Working Capital Changes 5446.87 5431.56 Trade & Receivables (1973.91) (1088.69) Inventories (1755.05) (646.46) Trade Payables (5.85) 702.78

(3734.81) (1032.37) Cash Generated From Operations 1712.06 4399.19 Financial Expenses (1249.05) (1091.09) Dividend (437.72) (417.31)

(1686.78) (1508.40) Cash from Operating Activities 25.29 2890.80 Income tax & fringe benefit tax (357.32) (389.00) Net Cash from Operating Activities (a) (332.03) 2501.80

B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (net) (13234.01) (1835.83)Capital WIP 7655.91 (7107.37) Proceeds form sales/ loss of fixed Assets 92.98 0.23 Investment (0.21) (5.11) Net Cash Used in Investing Activities (b) (5485.33) (8948.08)

C. CASH FLOW FROM FINANCIAL ACTIVITIES Proceed from issue of Share Capital on conversion of warrants 1053.00 –Capital Subsidy 485.20 Proceeds from Borrowings 4504.07 5474.38 Net Cash from Financing Activities (c) 6042.27 5474.38 Net Changes In Cash & Cash Equivalents (a+b+c) 224.91 (971.90) Cash & Bank Equivalents -Opening Balance 583.52 1555.43 Cash & Bank Equivalents -Closing Balance 808.43 583.52

Note: a) Figures in bracket indicate out-flow.b) Figures of previous year have been regrouped and

rearranged wherever necessary.







Balance Sheet AbstractInformation Information pursuant to part IV of Schedule VI to the Companies Act, 1956






I. Registration DetailsRegistration No. 13967State Code 04Balance Sheet Date 31-03-2008

II. Capital Raised During the year (Amount in thousands)Public Issue NilBonus Issue NilRight Issue NilPrivate Placement 5850.00

III. Position of Mobilization and Deployment of Funds (Amount in thousands)Total Liabilities 4362639.10Total Assets 4362639.10Sources of FundsPaid up Capital 161379.00Reserves & Surplus 1606851.35Secured Loans 2209292.65Unsecured Loans 247109.65Deferred Tax Liability 138006.46Application of FundsNet Fixed Assets & Capital Work in progress 2849699.41Investments 1470.60Net Current Assets 1511469.09

IV. Performance of Company (Amount in thousands)Turnover with excise, sales tax and other income 3549232.40Total Expenditure 3254048.60Profit before extraordinary items and tax 295183.80Profit before tax 294782.51Profit after tax 198924.1Earning Per Share (Rs)-Basic 17.44Earning Per Share (Rs)-Diluted 17.44Dividend Rate 0.30

V. Generic Names of Three Principal ProductsProduct Description Item Code No.(ITC Code)(i) Starch 110812.00 (ii) Liquid Glucose 170230.00(iii) Dextrose Monohydrates 170230.00

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