ocl india ltd. - bombay stock exchange€¦ · · 2014-09-092 ocl india limited annual report...

OCL INDIA LTD.ANNUAL REPORT 2013-14

With growth around the corner, we are working with our continued contribution to the economic, social and environmental values. We are taking steps in the direction of sustainable business practices. By building on our innate strength of operational excellence, product

innovation, cost prudence and expanding capacities; we are preparing ourselves for the future and continuing our growth by establishing logical organizational and governance structures. A sustainable today and a sustainable tomorrow is the motto that is helping us develop products and processes to meet the needs of today while remaining attentive to new developments on the horizon.

CONTENTS

Financial StatementsStandalone Financial Statements 33

Consolidated Financial Statements 65

Management ReportsDirectors’ Report 02

Management Discussion and Analysis 06

Corporate Governance Report 23

Corporate InformationPRESIDENTSMr. M. H. DalmiaMr. R. H. Dalmia

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

BANKERS / FINANCIAL INSTITUTIONSState Bank of IndiaUnited Bank of IndiaPunjab National BankUCO BankAXIS Bank Ltd.International Finance CorporationExport-Import Bank of IndiaYes Bank Ltd. HSBC Bank

AUDITORSV. Sankar Aiyar & Co. Chartered Accountants

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

KAPILAS CEMENT WORKSCuttack-753 004 (Odisha)

BENGAL CEMENT WORKSAshok Nagar, Medinipur-721 101 (West Bengal)

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

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OCL INDIA LIMITED ANNUAL REPORT 2013-14

Directors’ ReportFor the Year Ended March 31, 2014

The Directors of your Company are pleased to present their Sixty

Forth Annual Report together with the audited accounts of the

Company for the year ended March 31, 2014.

Working Results

DividendThe Directors recommend payment of dividend for the Financial

Year ended March 31, 2014 of `4/- per paid up equity share of `2/-

each.

AppropriationsIt is proposed to transfer `120 Crore to the General Reserve while

`155.58 Crore are proposed to be retained in the Profit and Loss

Account and carried to the Balance Sheet.

Operations

The operational results of the current year vis a vis the previous

year have registered an increase of 2.19% in net sales and decrease

of 26% and 28.8% in the operating profits and profit before

depreciation and tax, respectively.

For a detailed analysis of the performance of the Company for 2013-

14 reference is invited to the chapter on Management Discussion

and Analysis of this report.

Expansion and Future PlansYour Company has pleasure in informing you that 1.35 MnTPA

cement manufacturing unit in West Bengal has successfully

commissioned in the month of March, 2014.

Your Company has also Commissioned 2.5 MW Solar Power Plant

at its Kapilas Cement Manufacturing Works for use of green energy

and to trade in power market to harness Solar certificate in the

month of March, 2014.

Your Company is also in the process of setting up 4.2 MW Waste

Heat Recovery Power Plant at Rajgangpur, attached to Line-II

clinkerisation plant, to generate power from waste heat of the

cement unit. There is a delay in placing the order because the

company could not get approval from the authorities for considering

the power generation from this Co-generation plant as a substitute

of cogeneration obligation of our 2x27 MW Captive Thermal Power

Plants, without which there will not be economic viability as the

Company already has 100% self sufficient Captive Power. Efforts are

going on to get it recognized as cogeneration obligation.

The refining of steel adds value and the present trend of refining

by special refractory component is growing in steel industries.

Keeping in view the present scenario your company has expanded

the capacity of precast - special product manufacturing facility

at Rajgangpur. The technology for manufacture of other refining

system is being explored and your company expects installation

of manufacturing facility for similar refining refractory/metallic

equipments in near future.

Progress upon Captive Coal BlockRadhikapur (West) Coal Mining Private Limited, the joint venture

company incorporated for development of coal block at Radhikapur,

(` Lakhs)

2013-14 2012-13

Net Sales 1,84,854.19 1,80,883.30

Operating Profit 32,756.46 44,191.51

Less: Interest 6807.38 7,704.09

Depreciation 12,640.72 13,843.39

Profit before Taxation 13,308.36 22,644.03

Provision for Taxation

Current tax 3,039.95 5,900.00

Tax for previous Year 0.00 200.00

Deferred tax 688.80 905.44

MAT Credit available for set off -208.02 -

Profit after taxation 9,787.63 15,638.59

Add: Brought forward from previous year 20434.01 19,570.91

30,221.63 35,209.50

Transfer to General Reserve 12,000.00 12,000.00

Transfer to Debenture Redemption Reserve

- 123.67

Proposed Dividend 2,276.01 853.50

Tax on Dividend 386.81 145.05

Interim Dividend - 1,422.50

Tax on Interim Dividend - 230.77

Surplus carried to Balance Sheet 15,558.81 20,434.01

30,221.63 35,209.50

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Corporate Overview Management Reports Financial Statements

District Angul, Odisha along with Rungta Mines Limited and Ocean

Ispat Private Limited, the other Joint Venture partners, has received

environment clearance and recommendation to Government

of India for Forest Clearance has also been sent by Odisha State

Government. The land acquisition process is yet to start by Odisha

Industrial Infrastructure Development Corporation for which joint

venture company has already deposited the necessary advance

money. Meanwhile, due to slow process of statutory clearances,

Inter Ministerial Group has reviewed the progress of coal block and

decided to recommend de-allocation order. Company has received

de-allocation order. Your company as well as joint venture company

has filed a writ petition in Hon’ble High Court of Delhi and got stay

against de-allocation. The fate of the coal block will be decided on

merit basis along with other similar cases.

Directors

Shri Pradip Kumar Khaitan, Director of the Company, shall retire by

rotation at the forthcoming Annual General Meeting in accordance

with the provisions of the Companies Act, 2013 and Company’s

Articles of Association and being eligible, offer himself for re-

appointment.

Shri D. N. Davar, Dr. Sheo Raj Jain, Dr. R. C. Vaish and Shri V. P.

Sood, the existing Independent Directors, shall be so appointed

at the Annual General Meeting in terms of Section with 149 of

the Companies Act, 2013 for a term of five years with effect from

April 01, 2014.

Listing of the Company’s SharesThe Company’s equity shares continue to be listed on the Bombay

Stock Exchange Limited and the National Stock Exchange of India

Limited.

Directors Responsibility StatementIn terms of provisions of Section 217 (2AA) of the Companies Act,

1956, your Directors confirm that:

a) In the preparation of the Annual Accounts, the applicable

accounting standards have been followed, along with proper

explanation relating to material departures, wherever applicable;

b) The Directors have selected such accounting policies and applied

them consistently and made judgments and estimates that are

reasonable and prudent so as to give true and fair view of the

state of affairs of the Company as on March 31, 2014 and of the

Profit of the Company for the year ended on that date;

c) The Directors have taken proper and sufficient care for the

maintenance of adequate accounting records in accordance with

the provisions of the Companies Act, 1956 for safeguarding the

assets of the Company and for preventing and detecting fraud

and other irregularities; and

d) The Directors have prepared the annual accounts of the Company

on a going concern basis.

SubsidiariesThe Annual Reports of OCL Global Limited, OCL China Limited

and Odisha Cement Limited (“Subsidiary Companies”) for the

Financial Year ended March 31, 2014 are not being attached

with this Annual Report of the Company in terms of Ministry of

Corporate Affairs’ General circular number 2/2011 dated February

08, 2011 read with Section 212 of the Companies Act, 1956. The

annual accounts and the related information of the Subsidiary

Companies shall however be available to the shareholders of the

Company and shareholders of Subsidiary Companies, seeking

such information at any point of time. The annual accounts of the

Subsidiary Companies shall also be open for inspection by any

shareholder(s) at the Registered Office of the Company and of the

Subsidiary Companies concerned.

Consolidated Financial Statements

In compliance with the Accounting Standard 21 on Consolidated

Financial Statements, this Annual Report also includes Consolidated

Financial Statements for the Financial Year 2013-14.

Management Relations with Employees and LabourRelations of the Management with Employees and Labour remained

cordial during the year under review and the industrial peace and

harmony was maintained in the organization.

Fixed DepositsAs on March 31, 2014 there were 14 fixed deposits aggregating

`12.01 Lacs which remained unclaimed beyond due dates, out of

which deposits aggregating `1.58 Lacs have since been repaid.

4


Particulars of EmployeesThe particulars of the employees as required under Section 217(2A)

of the Companies Act, 1956 read with the Companies (Particulars of

Employees) Rules, 1975 are set out in Annexure-I to the Directors

Report.

However, having regard to the provisions of Section 219(1) (b) (iv) of

the said Act, the Annual Report excluding the aforesaid information

is being sent to all the members of the Company and others entitled

thereto. Any member interested in obtaining such particulars may

write to the Company at its registered office.

RESUME OF HEALTH, ENVIRONMENT AND SAFETY PERFORMANCE

Your Company has already implemented EHS system in its both

Refractory and Cement Division and is strictly complying its

requirement.

Your Company has planted about 16000 additional trees during

2013-14 making a total plantation of 489771 trees in and around its

plant, colony and mines.

To create environment awareness among employees “World

Environment Day” was celebrated on the 5th June, 2013. Similarly

“National Safety Day” was also celebrated on the 4th March, 2014

to refresh Safety awareness among the employees in the plant.

Cement Division of your Company has received the Certificate of

Appreciation Award in the Large Business Organisation category in

the Environment Excellence Award 2013 from Indian Chamber of

Commerce (ICC).

Refractory Division of your Company had unique achievement with

calendar year 2012 and also 2013 being ACCIDENT FREE YEAR.

The Division has surpassed its previous record of 8,95,227 man

days accident free and as on December 31, 2013 it has achieved

17,24,933 man days being accident free. As awareness to the

Rajgangpur colony residents and employees, the Division took out a

rally during early hours on January 01, 2014 through colony, Cement

Works and Refractory Works. All the workers of Refractory Division

were felicitated on the occasion by the Whole Time Director.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo, etc.Information required under Section 217(1)(e) of the Companies Act,

1956 read with the Companies (Disclosure of Particulars in the Report

of Board of Directors), Rules, 1988 with regard to conservation of

energy, technology absorption and foreign exchange earnings and

outgo are given in Annexure-II, which forms part of this report.

Corporate GovernanceAs per Clause No. 49 of the Listing Agreement, report on Corporate

Governance is given in Annexure-III, which forms part of this Report.

Unclaimed Suspense AccountIn terms of clause 5A of the Listing Agreement, the Company has

opened the demat account in the name and style of “OCL India

Limited - Unclaimed Suspense Account”.

Corporate Social ResponsibilityCorporate Social Responsibility has become a way of life in your

Company. With a view to promote socio economic condition

of people of the community surrounding it’s plant and mines,

your Company has implemented many new initiatives on

Health, Education, Drinking Water, Livelihood Training, Women

Empowerment, etc. at all locations during 2013-14.

Your Company has engaged one reputed NGO “SEWAK” for

implementing a program on “Mother and Child Health Care” in

12 revenue villages surrounding its factory and mines area. Your

Company has established four Remedial Coaching Centres in villages

for providing quality education to students and strengthening

their foundation. It has introduced bus service for school going

children of remote villages and facilitated them to attend their

classes regularly without any hassle. It has engaged a Hyderabad

based NGO “NIRMAN” for providing career counseling to students

and guiding unemployed youths in finding suitable employment.

Your Company has organized training programs on tailoring, dress

designing, artificial jewellary making, phenyl making, driving,

mason, welding, security guard etc and has made 300 unemployed

youths employable. Your Company has adopted 132 women self

help groups and has taken up initiative for building their capacity. A

number of training programs on income generation activities were

also organized for making them self sufficient. Your Company has

donated `51 lakhs (including the employees’ contribution) to Chief

Minister’s Relief Fund for relief and rehabilitation of people affected

by Phailin in Odisha.

Auditors and Auditors ReportM/s V. Sankar Aiyar & Co., Chartered Accountants, Statutory Auditors

of the Company, holds office until the conclusion of the forthcoming

Annual General Meeting and is eligible for re-appointment.

The Company has received from M/s V. Sankar Aiyar & Co.,

Chartered Accountants, New Delhi consent to act as auditors of the

Company, if reappointed at the ensuing Annual General Meeting

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and certificate in terms of section 139 and 141 of the Companies

Act, 2013 (the Act) and the Companies (Audit and Auditors) Rules,

2014, to the effect that their re-appointment, if made, would be

within the prescribed limits and they are eligible for appointment

and are not disqualified for re-appointment.

The notes to accounts referred to in Auditors’ Report are self

explanatory and, therefore, do not call for any further comments.

Cost AuditThe Company has received from M/s R. J. Goel & Co., Cost

Accountants, having office at 31, Community Center, Ashok Vihar,

Phase – I, New Delhi – 110 052 and having firm registration no.

00026, consent to act as cost auditors, if so appointed by the Board

of Directors, and certificate to the effect that their re-appointment,

if made, would be within the prescribed limits under Section 141(3)

(g) of the Companies Act, 2013 and that they are not subject to

disqualifications specified in Section 141(3) the said Act. The Cost

Auditors have further certified that they are independent firm

of Cost Accountants and are at arms length relationship with the

Company.

The due date for filing of Cost Audit Report by the Cost Auditor in

XBRL format was September 30, 2013 and the same was filed on

September 19, 2013

Acknowledgements

Your Directors wish to place on record their appreciation of

the support provided by your Company’s Bankers and Financial

Institutions.

Your Directors acknowledge the dedication and commitments of

the employees at all levels and also take this opportunity to thank

all the valued customers who have appreciated the Company’s

products and have patronized them.

Your Directors convey their grateful thanks to the Government

Authorities (Central & States), shareholders, distributors and

dealers for their continued assistance, co-operation and patronage.

For & on Behalf of the Board

Place: New Delhi Gaurav Dalmia D. D. AtalDate: May 13, 2014 Executive Vice Chairman Whole Time

Managing Director Director &Chief Executive

Officer

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Management DiscussionAnalysis&

Global EconomyThe year 2013 spelt slow and steady recovery world over. With

the global slowdown now showing signs of desertion, the dismal

slowdown as per the estimates is going to be over soon. While

North America showed positive signs of revival with a 1.9% growth,

emerging economies displayed a better performance with a 4.7%

growth over FY12. IMF projects global growth at 3.7% in FY 2014,

rising to 3.9 % in FY 15. Countries like the United States of America

and Japan are expected to grow at 2.2% and 1.7 % respectively,

owing to a strong pick up in the second half of 2013. Emerging

markets and developing economies are expected to see an increase

in growth to 5.1% in FY 14 and to 5.4%in FY15.

Indian Economy

Being one among the emerging economies, India also experienced a

moderate growth during FY13 with a growth rate of 4.4%. However,

going forward it is expected to improve given the factors like

upheaval in demand, infrastructure growth, fiscal and monetary

streamlining of policies and structural reforms. CSO predicts it to be

around 4.9% for FY14. Agriculture sector is expected to contribute

3.8% to this growth. The Secondary sector is expected to grow by

0.8% as against a 1.2% last year. Services sector, as has been the

trend in the last decade, is again seen as the catalyst to pull the

growth through 6.9%.

The Secondary sector, comprising of manufacturing, electricity and

construction sectors is expected to grow in a manner wherein the

electricity gas and water supply sector is expected to go up by 6%

over last year. The construction sector is seen growing by 1.7% only

against the 1.1% growth last year. This is in tandem with the present

slowdown situation at hand. On the other hand, a lot of investment

projects are seeing the light of the day due to acceleration in project

approvals. However, the growth in investment projects is still not

very imminent and has shown a declining trend as seen in the

exhibit below.

Global Cement Industry overviewCement, being an integral component of every infrastructure today,

is in high demand due to focus on infrastructure development,

urbanization and increased housing needs. With the upsurge in

construction of commercial and residential buildings, there is a shift

in demand in favor of the cement manufacturers all over the globe.

Cement industry has different demand patterns in developed

and emerging markets. Since, the developed world has already

matured to a significant level of urbanization; the demand for

cement and construction activities is limited there compared to the

developing world. The way things are rapidly gaining pace in the

developing countries even they are looking for major turnaround

in their infrastructure and urbanization processes. Speaking of the

geographic segmentation, China commands more than 50% of

the global demand as well as production of cement. India is also

amongst the top three producers of cement. It is also a major

consumer along with China.

Cement is subject to complexities of high transportation cost due

to its bulky nature. It also faces barriers of entry due to its cost

and nature. Given these reasons, multiplied by a fall in domestic

demand, big cement manufacturers have been on a buying spree

in developing countries. This upsurge of entry of the big players has

forced in excessive capacity into the emerging countries leading

to fall in prices and increase in fierce competition across the

developing countries.

16%

25%

59%

16%

24%

60%

2012-13 2013-14E

Contribution of Economic Sectors

Tertiary sector Secondary sector Primary sector

(Source: Central Statistical Office)

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Being influenced directly by growth in the infrastructure sector,

there is more to expect out of the cement industry in the wake of

an increase in investment all across the globe.

Indian Cement IndustryWith an overall installed capacity of ~350 million tones, the Indian

cement industry is globally competitive. It is comprised of 185 large

and 365 small cement manufacturers, mainly. Apart from fulfilling

domestic cement requirements, the industry also exports cement

and clinker to around 30 countries across the globe. The domestic

consumption in the year 2013 alone was ~260 million tonnes. The

construction sector overall contributes close to 7% to the country’s

GDP every year.

With the growing urbanization and rise in middle class’ income,

there is an anticipated upsurge in cement demand over the coming

years. The 12th Five year plan also envisages that the sector would

need to raise its capacities to ~470 million tonnes by 2017 to fulfill

the growing needs of the country. The Indian Government plans to

increase investment into infrastructure to US$ 1 trillion during the

stated period.

Cement Sector production trends have been encouraging at a CAGR

of 9.7% with a production volume of 272 million tonnes over the

period of 2006-2013. Cement consumption on the other hand is

expectedly closing at 265 million tonnes during the year, growing at

a CAGR of 8% during the same period. Given the present scenario,

cement consumption in India is expected to rise by 10.7% over the

12th five- year plan. (Source: IBEF)

2011

229

222

2012

247

242

2013

272

265

2014

300

293

2015

332

324

PRODUCTION CONSUMPTION

Eastern India Cement SectorEast India contributes to approximately 18% of India’s cement

demand and 14% of the total installed capacity. The cement

demand in this part of the country has been growing at a CAGR of

7% compared to a 9% growth overall in the country from 2010-13.

In FY 15 capacity addition of 6 Million Tonnes (nearly 9% of total

current capacity) is further expected.

OCL India is one of the oldest and leading players in the region. The

Company has enhanced its presence and expects to capitalize on

its capacity addition in Medinipur in West Bengal. The market is

expected to grow by 6.5% in the year 2014-15, while the Company

is targeting a growth of 24% during the period.

Challenges faced by the cement industry: The cement industry thus

is deemed to face certain challenges due to this demand and supply

mismatch. A few renowned challenges can be identified as follows: -

Low capacity utilization – Almost 60% of demand comes from

the housing sector and the rest comes from other industrial

and infrastructural sectors. With both the residential and

commercial construction being low, there is a lag of cement

demand vis a vis its supply. This is mainly due to the influx of

more and more cement manufacturers in the country adding to

the supply side. This year, 24 MnT capacity was added to take

the existing capacity to 370 million Tonnes (Source: IBEF). East

India, however is yet to witness any spurt in capacity addition

going forward.

Supply dependency - The performance of the cement industry

depends on regular and consistent supply of Coal, Power and

Railways. All these inputs are in the public sector, over which

the industry has no control and are inadequate in supply due to

impoverished arrangements.

Government support - Inconsistent supply of inputs and logistics

support from the Government undermines the performance of the

sector.

CEMENT SECTOR CONTRIBUTION AT 7%

2012-13

2013-14

TERTIARY SECTOR5 59% SECONDARY SECTOR 25% CONSTRUCTION 8% ELECTRICITY, GAS & WATER SUPPLY 2%

MANUFACTURING 16% PRIMARY SECTOR 16%

TERTIARY SECTOR5 60% SECONDARY SECTOR 24% CONSTRUCTION 7% ELECTRICITY, GAS & WATER SUPPLY 2%

MANUFACTURING 15% PRIMARY SECTOR 16%

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High taxation - The Cement industry at present is burdened with

60% tax rate, which is a strong bottleneck for the manufacturers to

comprehend.

(Source: Cement Manufacturers’ Association Annual Report

2012-2013)

The Road AheadThe Cement Manufacturers’ Association (CMA) predicts India’s

cement production capacity to reach 550 million TPA by 2020,

which will involve adding a further 230 million TPA. There are factors

favorable to this aspect of estimation which could be summarized

as below:-

Structural advantages: Residential sector will provide a strong

push to the cement demand. Given the rapid urbanization and

increasing per capita income combined with Government housing

schemes to support rural and urban sectors through housing

schemes etc., are expected to provide the stimulus. With a stable

government and adequate support to the upcoming projects, the

demand is expected to go up significantly. In East India alone,

there is a housing shortage of around 4.59 million houses in the

urban areas, equivalent to around 25% of the country’s urban

housing shortage.

Low per capita consumption - The Indian Cement industry holds

tremendous future growth potential. This is evident from the fact

that the per capita consumption of cement is much less compared

to the world average. India’s low per capita consumption of

cement, which is less than 200 kg, is also one of the main reasons

for strong interest shown by the foreign players. Per capita cement

consumption in East stands at 115 kg compared to all India

consumption, which presents huge potential for the region.

High infrastructure spending - According to India’s 12th Five-Year

Plan (2012-17) document, the two segments most important

to construction activity are infrastructure and housing. Since,

infrastructure spending is expected to go up to 9% of gross domestic

product (GDP) or USD 1 trillion for the Plan period (2012-17), this

will translate into double-digit growth for the demand of cement.

For eastern India, total infrastructure outlay has been increased by

2.9 times in the Plan.

Dedicated freight corridor - A 3300 KM long dedicated freight

corridor is going to be built by Dedicated Freight Corridor

Corporation of India Limited between Eastern and Western regions

as part of two such corridors proposed in East - West and North -

South India.

Rise in middle class income – With the growth in Indian middle class

Income, there is an upsurge foreseen in the construction and housing

sectors, going forward. Also, with rapid urbanization as expected in

the coming years to continue, there is more scope for the cement

industry’s growth, going forward. With the growth escalating to the

regions, East India also is part of the growth horizon going forward.

Government impetus - With the various government programs,

such as National Rural Employment Guarantee and low-cost housing

in urban and rural area schemes like Jawaharlal Nehru National

Urban Renewal Mission and Rajiv Gandhi Aawas Yojana in place,

the housing demand is expected to get a boost.

Refractory industry overviewThe global refractory market is forecast to grow at a CAGR of 0.7%,

reaching 39.8 million tonnes by 2017, according to an independent

study. Although growth has slowed in recent years, refractory

demand and value is still very significant. In the present scenario,

acquiring overseas interests, whether at raw material sources,

processing plants, or clients to export to, could become vital for

refractory companies especially in developed countries.

The principal applications of refractories are in iron and steel

industries, cement, glass, non-ferrous metals, petro-chemicals and

fertilizer industry, chemicals, ceramics and even thermal power

stations and incinerators. Steel is the largest market for refractories,

both historically and at present.

Indian refractories industry boasts of a capacity of nearly 2.4

million tonnes. It is catering to the steel industry in India, majorly

9


apart from the demand from glass, cement and other allied

industries.

Refractory industry also faces some profound challenges which are:

Fall in demand from steel industry – Being the biggest customer

for refractories, the fortune of the refractory industry in India

have invariably been influenced by the growth and technological

changes in the Steel industry. The sector contributes to nearly 2%

of the gross domestic product (GDP). At present, with the domestic

consumption of steel soaring high, steel makers are relying on

imports from outside (mainly China) for their refractory needs.

China being a major supplier has imposed restrictions on exports

of raw materials to support its local market. This in turn acts as an

impediment to Indian refractory makers as steel producers directly

import refractories as finished products from China.

Low capacity utilizations - As alike cement, the refractories also

face low utilizations as the products are imported from outside by

the final consumers.

Growth of Cement Industry - Since Cement industry is another

consumer of refractories, all the challenges for the cement industry

are shared by the refractories as well.

The Road Ahead: - With the growth of the factors mentioned below,

refractory industry is poised for a better future.

National Economic Growth – The overall economic growth of the

country has been dismal this year. However, there is a huge potential of

growth due to the fiscal and monetary reforms being employed. There

are concerted efforts being taken to revive the economy, which have

started showing some signs. Particularly for the refractory sector, the

dismal performance of the mining sector acted as an impediment to the

demand due to low production of raw materials. This translated to a low

production and hence infrastructural development. With due actions

being taken, there is huge scope of increase in demand going forward.

Steel Industry Upsurge: Going forward, the refractory market is set

up for a global turnaround due to spurt in demand for steel in lieu of

more demand for infrastructure as a response to urbanization. As

per a NASDAQ study, the overall scenario is expected to improve in

FY14. World steel demand is expected to increase by 3.3% to 1,523

MnT driven by a further pickup in global steel demand with the

developed economies increasingly contributing to growth. Also, it is

believed that most of the exports to the World would go from Asian

countries including India and China due to low cost manufacturing.

In India, the situation at hand is not dependent only on urban

growth. The rural sector, which has a low per capita consumption of

steel, at 12 kgs, shows a huge potential going forward. The overall

Indian average per capita consumption is 59 kgs. Thus, even if

urbanization is restricted, India is open for a steel demand from its

rural sector. This is a positive sign for the refractory manufacturers

in India as the Government and private sector of the country are

significantly investing into infrastructure and other allied industries,

which require steel as a basic input.

Global market penetration: Indian refractory industry has

established technology of the products, therefore, ample

opportunity lies for export, particularly those refractories which are

manufactured by domestic raw materials.

Low cost manufacturing: With the advantage of low cost

manufacturing, India is bestowed with a huge potential from

industries like copper (smelting), aluminum, zinc and production of

ceramic wares and glass. These industries also use refractories in

the furnaces.

OCL India Ltd. – A reviewWith a strong presence across the four states – Odisha, West

Bengal, Bihar and Jharkhand-- OCL India today is one of the oldest

names in the industry. It is engaged in the manufacture of cement

and refractories.

OCL India has cemented the foundation for many famous

monuments and other significant sites in India since its inception-

the Jagannath Temple, Puri and TISCO/Jamshedpur Plant and Jindal

Steel and power plants at Angul, to name a few.

Operational Overview – Moving towards self-sufficiencyThe Company has had a considerably well-off year compared

to the industry. Operationally, OCL India made few significant

developments during the year, which include: -

Completion of West Bengal Cement plant 6 months ahead of time

– OCL has added an additional capacity to its kitty by bringing in

an additional plant at Midnapur, West Bengal. This brings the total

capacity of OCL to 6.7 million TPA from 5.35 million TPA earlier. The

plant has already started functioning.

10


Lanji Berna mines issue resolution restoring raw materials

security- The Company also restored itself a security for a longer

period ahead in time by acquiring license for its limestone mines

at Lanji Berna. The Company had to temporarily shut down

two kilns at Rajgangpur as it had already exhausted the limit of

limestone production at Lanji Berna limestone and Dolomite mines

to the extent of 1.7 million TPA during 2012-13. Now with the

issue resolved with a renewed license, there is a lot of positivity

surrounding OCL’s smooth functioning in the area.

Captive power plants in operation in full swing – The Company has

also got its two captive power plants of 27 MW each functioning

smoothly from this year. With both the plants now stabilized, the

Company is now self-sufficient in terms of its power needs.

More human resource addition in lieu of expansion – With the

additional plant in West Bengal, there has been more human

resource (~117) brought in to support the operations.

RAMCO installation in the refractory division - The installation

of RAMCO will help bring about a more efficient and smooth run

for the Company overall through efficient data management in

refractory division.

Financial Overview – Self-sufficiency through cost optimizationOCL India has implied a continuous focus on the four markets

it operates in this year. There has been an aggressive focus to

penetrate even deeper into these markets.

There have been several moves made towards self-sufficiency

during the year, which have added to the costs of the Company but

are seen as necessary investments into the future.

• Cost reduction measures through commencement of captive

power units and strong prices in the eastern region promises

strong outlook for the Company. The Company has actually

reduced its power and fuel expenses in the year by 10.33 % to

`284.44 crores from `317.22 crores last year.

• The Company has put an aggressive focus on marketing and

brand improvement through concerted efforts.

• Significant reduction in finance cost by 11.63% due to measures

like interest cost rationalization.

Segmental Overview - The two segments of the Company have been

contributing consistently to the growth of the Company in eastern

India. Out of the two divisions, Cement division of the Company

contributes ~80-83% of its revenues every year. The ‘Konark’ brand

of the Company is a leading brand in Odisha with 51% sales and is

gaining ground in other markets of OCL.

The refractory division, in spite of being of a fragmented nature, is

building a strong repute of its own with each passing day. Globally,

OCL India is one of the very few producers of Coke Oven Silica bricks

apart from other refractory products.

Cement divisionThe cement division of the Company has been performing well over

the years and the Company has been putting in conscious efforts to

retain its strong position in East India.

Cement - Operational Highlights

Completion of the new plant: The Medinipur (West Bengal) plant

was completed 6 months ahead of time. It has added 1.35 MnT to

add to Company’s existing cement manufacturing capacity of 5.35

MnT through existing plants in Rajgangpur and Kapilas.

Raw material security: With the resumption of work at the Lanji

Berna mines, the Company has assured itself raw material security.

Power self-sufficiency: Both the captive power plants of the

Company are up and running, which provides self-sufficiency to the

Company by catering to the need of the cement division.

Cement- Financial Highlights

Net Sales: During the third quarter, Phailin spelt disaster all over the

eastern and southern parts of India. To this effect, the revenue grew

by only 2 % from INR 1503 crores to 1530 crores in 2013-14.

OCL INDIA REVENUE SEGMENTATION

CEMENT 82% REFRACTORY 18%

11


EBITDA: There was a fall in EBITDA of the Company at the end of

year by 26%. It fell to `309 crores during the year compared to

`419 crores in 2012-13. With the overall Infrastructure, real estate

and other industries also facing the brunt of excessively wet and

moist conditions in the affected regions, OCL fared no different with

its performance in the cement division.

Capital Employed: the employed capital pertaining to the cement

division went up by 3% to reach `1453 crores during the year

compared to `1410 crores in 2012-13 which pertains to added

capacity.

Risk ManagementBeing a high up part of the cement industry, the Company is also

in rendezvous with the major risks basking on the players in the

country. However, understanding the volatile nature of the business,

the Company is prudently involved in mitigating the risks ahead.

Natural risks – Calamities like Phailin or an excessive monsoon

takes away the opportunity of a good business in a year. Since,

the Company is majorly present in east India, it is more prone to

such disturbances and the interdependence on industries like

infrastructure and construction adds to its woes of doing business

steadily. The Company is looking for penetrating deeper into these

markets continuously deriving business from non-affected areas in

case of excessive monsoons in the coastal areas of eastern India.

During the year, the dealers and sub-dealers increased by around

8% across markets.

Geographical concentration risk - Due to being concentrated mainly

in Eastern India, the Company faces a strong risk especially from

South Indian manufacturers. Since, OCL has a cost advantage over

other states from the South due to high transport costs involved,

this risk is not that gross for the Company. The proximity of the

markets to the plants takes care of this risk for OCL.

Interdependence of industries – Infrastructure, real estate and

retail; all the three sectors went through trying times during the

fiscal due to various factors like slow down in the economy and

natural calamities as mentioned above in the cement sector. The

Company is trying as hard as possible to regain its lost opportunities

with great vigor. The Company is focusing on its existing markets

through marketing and selling expenses and distribution network

enhancements.

Raw material risks – The rise in cost of basic inputs and raw

materials poised a risk for the Company in previous years. It was

dependent on external sources for its requirement. But this year,

OCL has mitigated its risk of raw material and power costs by

attaining self-sufficiency.

• Raw material costs – The Company is moving on a rapid pace

to attain self-reliance pertaining to raw material. This year, the

Company regained its source of raw material – Lanji Berna mines--

back available at its disposal with all compliances and licenses.

• Power & fuel expenses – Commencement of the two Captive

power plants in full flow this year has made the Company self-

reliant to a great extent.

Foreign exchange fluctuation risks - The devaluation of Rupee

against Dollar poses a threat to the business. The raw materials

being necessary requisites then lead to additional costs to the

Company. To take care of this risk, the Company makes transactions

through forward cover and PCFC.

Refractory DivisionThis division of the Company boasts of a distinct international

12


presence in terms of sales. It spans through five continents with

strong presence amongst its global peers. The Company also boasts

of a state-of-the-art R&D facility, which is continuously engaged into

adapting to latest technologies and improving upon the existing

practices. The strong hold of 92 patents is itself a proof of the

consistent performance over the years.

Operational HighlightsOCL India has achieved a self-attained goal of being more resource

efficient through the practice of bringing in the most cost-effective

strategies.

Repeated orders: This year, the Company enjoyed yet another

stream of repeated orders from clients from steel, glass and copper

industry segments domestically and globally. The installed capacity

of 0.106 million tonnes per annum justifies its existence well for the

Company.

OCL China Ltd.: OCL China Ltd has achieved 100 % of the capacity

in Magnesia Carbon and 28 % in Basic Burnt. Slump in glass badly

affected the burnt brick facilities.

Raw material: The Company owns quartzite mines and is exploring

various possibilities of mining different other raw materials as well

as manufacturing of synthetic raw material for use in refractory

industries. This will help us in having a sustenance business plan

for future.

New technology & products: The Company has developed many

new products & processes and has filed patents for 2 of them.

The Company is also working on documentation to enter into

Technology Licensing Agreement with Japanese Company, which is

leader in some special products in Japan.

Patents Filed – During the year, OCL filed the patents for the

following two products:-

• Novel Nozzles for continuous casting of steel with inside spiral

design

• Cement Kiln burner tip refractory block and mode of fixing

thereof

Continued Focus on Export Market: The efforts to export the

refractory products continued in this year also and it was possible to

retain the Middle East, Scandinavian, Italian & Turkish market even

after severe pressure from domestic as well as Chinese refractory

manufacturers. We could add new business in neighbouring

countries of Bangladesh and Russia this year.

Refractory – Financial Performance

Net Sales: Refractory Segment witnessed a growth of 4% from

`305 crores in FY13 to `318 crores in FY14. However, realizations

have shown a fall of about 7 % reaching `39,733 per tonne in FY14

compared to `42,622 per tonne in FY13 due to slowdown in the

economy.

Exports: OCL India retained its exports market.

EBITDA: There was a decline of 22 % in EBITDA from `23 crores in

FY13 to `18 crores in FY14.

Risk Mitigation – With a global placement, OCL India also faces

certain risks pertaining to its refractory division. These risks

influence the positioning of the Company amongst its peers and its

strategies going forward.

Risk of slow economic growth - Slowdown in economic growth

will lead to reduced consumption in consuming industries. It is,

therefore, necessary to increase the product base and customer

base. In order to achieve this, the Company has been investing in

R&D to develop new products, new processes of manufacturing of

the products, refractory management technique at customer end.

In addition to this, the Company has been exploring new export

markets, especially in glass and copper manufacturing segment.

Steel industry demand risks – The Company has been able to offset

the fall in demand of its products through an increased penetration

into the market. During the year, the figures of refractory turnover

have given an encouraging preview of retention of sales with a 4%

raise over last year. Through increased efforts into refractory sales

in India and overseas with competitive pricing, the Company is

steadily moving ahead, with more demand going forward.

Competitive risks – The Company has followed a stringent strategy

of staying in competition with total focus on marketing and branding

for its refractory division as well. It also works on improving the

quality of its products, making new products and making efforts to

reach out to non-steel industries like cement and petrochemicals.

Raw material risks - Other than quartzite, the Company buys

almost all other raw materials. The bulk of other raw materials

have been coming from China in the past. The Company has now,

through its R&D, has also made use of non-Chinese raw materials

13


in some of the products thereby is in a position to keep checks

& balances in increase in raw material prices. The Company has

been continuously making endeavors to own mines for natural raw

materials and manufacturing synthetic raw materials. The Company

has been working towards securing long-term supply contract for

some of the raw materials.

Foreign exchange risk: The Company normally quotes in US$ for

export supplies. However, for Japan the currency of business is

YEN instead of US$. OCL Global business with OCL-China is in RMB.

Foreign exchange risks are mitigated through forward covers.

OutlookThe overall outlook for OCL is quite positive and there is a lot

of scope in both its segments, going forward. While the world

economy is now recovering well out of the Global turmoil, we can

expect the business to go an extra mile in the coming times due to

anticipated demand increase in infrastructure, residential and retail

sectors apart from other constructions.

Both cement and Refractory being highly specialized industries

can be expected to have better performance through structured

competitive advantages and technologies with the existing

capacities at hand with OCL India.

Research and Development (R&D)OCL today has an in-house R&D Centre with state-of-the-art

facilities, technologies and equipment. Besides the R&D Centre,

OCL has set up an independent R&D institution – “Dalmia

Institute of Scientific & Industrial Research”. During FY14, OCL

continued its focus on R&D in both its business divisions and

has been able to offset the saddening effects of the economic

turnaround through better products and continuing demand.

It is more than encouraging to see the growth of demand at

12% for cement in comparison to the market demand of 8%.

The Company is in process of utilizing waste heat generated for

power generation. Alternate Fuels were put to use for the first

time to diversify fuel mix.

Regarding the Refractories, with aggressive thrust on the exports of

special Refractories like Continuous casting, Slide plates & Purging

Refractories for the Steel Sector, Direct bonded Mag-Chrome bricks

for the Copper and Fireclay & High Alumina bricks for the Aluminum

Industries; it enjoys clientele of reputed overseas customers. Focus

on research has lead to an environment of innovation of OCL

Refractories right from its inception. The Company puts high focus

on innovation. Employee encouragement to innovate has been

strengthened by showcasing selected innovation.

Launching of new products in refractory e.g. Spiral SEN, Special

High Alumina Cement, Mag Spinel refractories for steel industries

are example of this year’s commercial success. R&D done

by its technology team focuses on process control, product

improvement, new material application, product design and

product costs. Major R&D included this year are development of

Mono Block Stopper for CST Casters, Carbon Free Bore of Ladle

Shroud, Alumina Chrome Zircon for Glass, Flower Pot design

of SEN, Flip Design Slide Plate, Fused Silica Bricks, etc. These

products will open up new markets in addition to retaining the

existing business. Going forward, the focus is on development of

bricks in Cement Rotary Kiln, Hybrid Fused Silica Refractories for

Coke Oven Applications, Special Refractories to be used as Inserts,

Special Refractories for CST Caster, high performance refractories

for stainless steel making etc.

Human Resource Development & Industrial Relations: With a large and trained pool of resources at its disposal, OCL

India has been continuously investing in its human capital to retain

the present talent pool with it for long. This year, the Company

has enriched its existing human resource in the last nine months

of the year to add to the increasing capacity of plants due to the

commencement of the West Bengal plant. The management of

OCL engages with the workers at the mines talking to them about

safety quite often. The newsletter of the Company – Darpan,

is circulated across offices. It makes the employees feel part of

the system. It includes their personal happy moments like Durga

Puja celebrations at the office, marriages, child birth etc. Apart

from this, milestones like joining, completion of 25 years etc., are

also covered in the newsletter. The Company is also encouraging

internal job postings to provide a growth path to the talented

employees. A regular review of the employee benefit policies is

also done from time-to-time to ensure improvements and benefits

accrued to the deserving employees.

Awards and Recognitions: The Company has been receiving

recognition for its work through various initiatives and programs. A

few of them are listed here under:

14


Lanji Berna Limestone and Dolomite mines bagged 4 prizes in the

51st Annual Mines Safety Week celebration, 2013, for the following

categories:

• General Working (1st Prize)

• Publicity and Propaganda (1st Prize)

• Explosive Handling (1st Prize)

• Overall Performance (2nd Prize)

The Cement Division bagged the third position in the ‘Environment

Excellence Award, 2013’ organized by India Chamber of Commerce

for focus.

Quality circle ”VIDYUT” from ELECTRICAL DEPT Quality circle

“BASUNDHARA’ form CONCAST PLANT participated in ICQCC-2013

held at TAIPEI (TAIWAN) from 22nd -25th Oct’2013 & bagged the

highest category “EXCELLANCE AWARD”

Quality Circles “ LAKSHYA” & “NIRJHARINI” both from CONCAST

PLANT and Quality circle ”VIDYUT” from ELECTRICAL DEPT from our

Refractory division has participated in 21st CCQC - 2013 at Rourkela

from 20th - 21st September 2013 and all the teams have bagged

GOLD Award (highest category) in this Convention QC_NIRMAN

from CMS(Engg.) bagged the Silver award.

Quality Circles “LAKSHYA” & “NIRJHARINI” from CONCAST PLANT &

Quality circle ”VIDYUT” from ELECTRICAL DEPT from our Refractory

division has participated in 27th NCQC- 2013 conducted by

Durgapur Chapter at KOLKATA from 20th - 23th December,

2013 and all the teams have bagged PAR EXECELLENCE Award

(highest category) in this Convention.

Quality circle TEJAS from Kilns & GPP has participated in NALCO

convention at Bhubaneswar & bagged the Meritorious Performance

Award during April’ 2013.

Customer Appreciation – Excerpts from a letter from one of the

major steel makers dated 26-Feb-14, “Overall we have observed

improvement in ladle refractory performance provided by OCL.

We have observed consistent improvement in the quality of bricks

supplied by OCL. We thank for the support and cooperation

extended to us by team OCL to improve the steel ladle life. We

expect the same assistance in future too.”

Corporate Social ResponsibilityOCL India has been actively performing its social duties through

services into various sectors like health, education, water,

community welfare, games and sports etc., apart from the

environmental protection. In the year, the Company played its part

by helping the victims of Phailin and resultant floods in Odisha. The

Company contributed ` 51 Lakhs to the same by presenting it to the

Chief Minister of the State. This donation included one day salary/

wages of the OCL employees voluntarily contributed by them to the

cause. As part of the relief work, the periphery villages, which were

most affected, were provided with polythene sheets and other

relief materials. The Company also regularly organizes Counseling

sessions for pregnant and lactating mothers at their door step

through an agency “SEWAK”, which is into child healthcare. Free

school buses are provided to children of Shramik High School,

Bihaband, to reduce drop-out rates. A similar step is being taken

by initiating a Remedial education centre for students of Standard

IX and X in Government schools around Lanji Berna. Further, the

Company also provides self-employment opportunities to women

of nearby areas by presenting their crafts in exhibitions during

Durga Puja etc.

Internal ControlsYour Company has appropriate internal control system for business

processes, with regard to efficiency of operations, financial

reporting, compliance with applicable laws and regulations etc. The

roles and responsibilities of all employees and functions have been

clearly laid out. All operations are under strict adherence of the

regulations followed. The Internal Auditor of the Company conducts

regular internal audit and ensures that responsibilities are executed

effectively. The Audit Committee of the Board of Directors conducts

periodic reviews to adjudge the adequacy and effectiveness of

internal control systems and directs improvements whenever the

need arises.

Forward Looking StatementThis Management and Discussion Analysis statement contains,

certain forward - looking statements and information, which

are based on some assumptions, estimates, objectives

and expectations concerning future operations and future

performance. The readers are hereby cautioned and advised that

these forward-looking statements are subject to numerous risks

and uncertainties that are difficult to foresee and actual outcomes

might differ significantly.

15


Annexure-IITo the Directors’ Report

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

A. CONSERVATION OF ENERGY

CEMENT:

a) Energy Conservation measures implemented

1. Reductioninidlerunningofequipments.

2. Installationofenergyefficientpumpsatmines.

3. Compressedairoptimization.

4. Continuedmonitoringandarrestingofleakagesinducts.

5. Reduction in specific power consumption through

productivity improvement in pyro processing and

cement grinding.

6. InstallationofenergyefficientFluorescentLamps.

7. Replacementoffewidentifiedagedmotorswithenergy

efficientmotors.

8. Cement Vertical RollerMills internalmodification(Dam

ringheightoptimization,S-rollerremoval)

9. DamperremovalfromCVRM-1Millfan

10. ReductioninpressuredropacrossCVRMbagfilters

11. NewGRRinstallationinCVRM-3bagfilterfan

12. Cooling tower pump start stop interlock with water

temperature

13. SintercasttireandtablelinerinstallationinCVRM-3

14. Usageofpetcokeinbothline-1andline-2kilns

15. Reductionindegreeofcalcinationsinline-1andline-2kilns

16. Reduction in Preheater tower temp by raw mix

optimization

17. ImprovementinairblastercycleoperationinPreheater

18. Additionofmorethan31%flyashinPPC

19. OPCgrindingwithoutheat.

20. Reduction in auxiliary power consumption of CPP by

installingVFDinboilerfeedpump.

21. IncreasedUsageofalternatefueltopartlyreplacecoal

asanalternatefuelforkilnandCPP.

22. Study of kiln operations through NCCBM and

implementationofcorrectiveactions.

23. Energy audit through CII and implementation of

correctiveactions.

24. OptimizationofLine2processfans.

25. Reductionofpressuredropacrossdamperinidentified

BagFilterfansinpackingplantarea.

26. OptimizationofoperationofcompressorsatLine-2.

27. Reductionofpre-heatertowertemperaturebyprocess

optimization.

28. Installationof2.5MWsolarpowerplant.

b) Additional investments and proposals, if any, being

implemented for reduction of consumption of energy:

1. Watersprayintopcycloneinline2toreducePHFanpower.

2. Continuedutilizationofwastehot gases fromkiln and

coolerfordryingofslag.

3. Continued daily monitoring of section-wise energy

consumption.

4. Continuedmonitoringoffalseairincircuitandarrestingit.

5. Auditofcompressedairsystem.

6. Usageofcarbonpowderfromasalternatefuelforboth

kilns

16

OCLINDIALIMITED ANNUALREPORT2013-14

7. ImplementationofCFDstudyreportinLine-1andLine-2

8. InstallationofWHRsystematline-2(underproposal)

9. Capacityenhancementofclinkertransportbeltconveyor

forCVRM-3fromLine-2

10. CapacityenhancementofSlagtransportbeltforCVRM-2

11. GRRinstallationforVRM-1cyclonefan

12. Studyof Line-2 toenhancecapacity from4000TPD to

5000TPD&firmupproposal.

13. Installation of new high flame momentum burner in

Line-1&Line-2.

14. CVRMclassifierchangewithhighefficiencyatKCW.

15. DCSsystemforpackingplantoperations.

16. VFDforwastegasfan.

c) Impact of the measures at (a) and (b) above for reduction of

energy consumption and consequent impact on the cost of

production of goods:

1. Reduction in consumptionof thermal/electrical energy

per ton of cement produced. Saving of 16 KCal/Kg of

clinkerinSp.HeatconsumptioninLine-1kilnandSaving

of0.56kWh/tofclinkerinLine-2

2. EfficientUtilizationofwasteheatfordryingthemoistureof

slaghasresultedinreductionintheconsumptionofcoal.

3. Creating extensive awareness on need of energy

conservation.

4. Reduction in Green House gases there by helping to

controlGlobalwarming.

5. AsteptowardsPATimplementationaslaiddownBEE.

6. Conservationofnaturalresources.

d) Total energy consumption and consumption per unit of

production as per ‘Form A’ is given below.

ENVIRONMENTAL IMPROVEMENT:

a) Environmental improvement measures taken:

1. StacksasperSPCBguidelines.

2. Usageof fly ash&bed ash (wasteproduct of thermal

powerplant).

3. Usageof7%nonmagnetic char (wasteof sponge iron

plants)asalternativefuel.

4. New design water spray systems at CCBC, limestone

stockpileinLine-1andCoalhandlingplantatCPP

5. StartedusageofPetCoke(refinerywaste)asfuel.

6. Watersprayssystemsattrucktippler.

7. Plantationof10000trees/year.

b) Additional investments and proposals, if any, being

implemented for Environmental improvement:

1. Continued usage of fly ash (waste product of thermal

powerplant)toproducePPC.

2. ConversionofKiln&VRMESPofLine-1intohybridbagfilter.

3. Continuedusageofalternatewasterawmateriallikebed

ashofCPP.

4. Dust suppressionhopper for clinker loading toKCW in

Line-1.

5. Raingunwaterspraysystemsatcoalstackerreclaimer.

6. Newdesigndust suppression system in clinker loading

system.

7. IncreaseusageofPetCokefrom5%to30%.

c) Impact of the measures for environmental improvement:

1 With various water conservation measures, the drawl

andconsumptionofsourcewaterforfactoryoperation

andcolonyrequirementhasreducedbyalmost30%over

thefouryearperiodfrom2009-10to2012-13.

2 Environment control as per CPCB norms – bagged

CertificateofAppreciationfromCII

c) Total energy consumption and consumption per unit of


REFRACTORY:

a) Energy Conservation measures taken:

1 Utilization of hot air from chamber kiln to dryer for

dryinggreenCCproducts.

17


2 Utilizationoffluegas frombell kiln todryer fordrying

finishCCproducts.

3 Increaseofpayloadabout25%ofslideplateinbellkiln

bymodifyingloadingdesign

4 AllthepanelAirconditionerofCNCmachineshavebeen

interlocked with the operating control of machines to

reduceenergyconsumptionduetoidlerunning.

5 Interlockofdustfiltermotorswithcircuitwasprovided

tostopidlerunningofdustfilters.

b) Additional investment and proposals

1 Secondcrushing&grindingcircuitforCCgreensection

toreducewastageofmaterialandincreaseefficiency.

2 ToprovideVFDinChamberkilnI.D.fantocontrolenergy

consumptiontosuitthedraftrequirementofthekiln.

3 To modify electrical control of drying oven of Precast

planttoreduceenergyconsumption.

4 ToprovidegaspressureregulatorsinallChamberKilnsto

regulatetheconsumptionofgas.

5 Installation of automeasurement & display of control

parameterinchamberkilnNo.5.

6 FluegasutilizationfrombellkilnindryersinSlidePlate

Plant.

7 Useofsilicabricksforliningofchamberkilninsteadof

fireclaybrickstoincreasethelifeofchambers.

c) Impact of the measures at (a) & (b) above for reduction

of energy consumption & consequent impact on cost of

production of grades:

1 Reduction in fuel consumption and also cost for silica,

concastandbasic/doloburntproducts.

2 Improvement in silica and concast output.

3 Reduction in carbon emission to atmosphere thereby

achieving environmental improvement.

4 Reductioninpowerconsumption.

d) Total energy consumption and consumption per unit of


18


FORM-A

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

2013-14 2012-13 CEMENT REFRACTORY CEMENT REFRACTORYA) POWER AND FUEL CONSUMPTION

1 Electricity a) Purchased Units(inlackwh) 484.6 121.44 1394.31 136.41 TotalAmount(ìnlacs) 3718.05 793.98 8250.31 835.88 Rate/perunit(`) 7.67 6.54 5.92 6.13b) Own generation

i) Through Diesel Generator Units(inlacskwh) 19.92 1.37 9.08 0.57UnitsperltrofFueloil(inkwh) 2.65 2.64 2.68 2.68Cost/perunit(`) 20.05 20.02 20.18 20.23

ii) Through Steam turbine / Generator Units(inlacskwh) 1974.34 - 1239.22 -UnitsperltrofFueloil/gas(inkwh) - - - -Cost/perunit(`) 6.06 - 6.36 -

iii) Through Solar Units(inlacskwh) 0.16 - - -UnitsperltrofFueloil/gas(inkwh) - - - -Cost/perunit(`) 5.67 - - -

2 Coal (Grade B to F Wash Coal in Kiln and CVRM, Grade A,

B, E-Refractory Kilns)

Quantity(inlactonnes) 3.69 0.28 3.78 0.34TotalCost(` inlacs) 14417.97 1401.53 15040.82 1808.19AverageRate(` /MT) 3905.87 5021.36 3981.99 5269.31

2A Char Quantity(inlactonnes) 0.04 - 0.23 - TotalCost(ìnlacs) - - 0.61 - AverageRate(`/MT) 0.01 - 2.72 -

3 Furnance Oil Quantity(K.ltr) 2408.17 1,342.54 1486.31 1655.01 Totalamount(ìnlacs) 960.92 569.53 563.22 681.54 AverageRate(`/k.ltr) 39902.33 42422.02 37893.98 41180.744 Others / Internal Genaration a) Light Diesel oil for P.G Set Quantity(K.ltr) - - - - Totalcost(` inlacs) - - - - Rate/Unit(`/k.ltr) - - - -b) Light Diesel oil for KHD Kiln

Quantity(`K.ltr) - - - - Totalcost(ìnlacs) - - - - Rate/Unit(`/k.ltr) - - - -

19


2013-14 2012-13 CEMENT REFRACTORY CEMENT REFRACTORY

c) Light Diesel oil for CVRM Quantity(K.ltr) - - - - Totalcost(` inlacs) - - - - Rate/Unit(`/k.ltr) - - - -d) HSD Oil for DG Set Quantity(K.ltr) 1.56 - 2.57 - TotalCost(`inlacs) 0.86 - 0.74 - Rate/Unit(`/k.ltr) 55223.45 - 28829.11 -e) High Speed Diesel oil etc for Payloaders & Tippers at

Factory

Quantity(K.ltr) 325.45 - 217.988 - TotalCost(` inlacs) 183.49 - 94.51 - Rate/Unit(`/k.ltr) 56379.70 - 43356.66 -f) HSD Oil for Disel Locos Quantity(K.ltr) 149.42 - 145.42 - TotalCost(` inlacs) 84.69 - 63.12 - Rate/Unit(`/k.ltr) 56680.26 - 43408.57 -g) Dynamics F for Kilns Quantity(K.ltr) - 0.5 - 0.96 TotalCost(` inlacs) - 1.27 - 2.44 Rate/Unit(`/k.ltr) - 253174.00 - 254415.63

B CONSUMPTION PER UNIT OF PRODUCTION (PER MT)2013-14 2012-13

a) Cement Electricity(KWH) 73.83 73.72 FurnanceOil(litres) 0.49 0.317 CoalforKilnandCVRM(gradesBtoF-WashCoal)Kgs 111.10 100 Char(kgs) 1.25 6 Others-L.DOil(litres) ForKHDKilnandCVRM - - HSDOilforpayloadersandtippers(ltrs) 0.10 0.063 HSDOilforCVRM - -b) Refractory Electricity(KWH) 294 301 FurnanceOil(k.litres) - - ForOilFiredBricks 0.242 0.342 ForMixedFireBricks 0.065 Coal(M.T)forRefractoryKilns(gradesA,BandE) - - ForGasFirebricks(MT) 0.887 1.105 ForMixedFireBricks(MT) 0.488 0.275 DynamicsF - - ForOilfiredbricks(k.ltrs) 0.00011 0.00019

20


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

CEMENT:

1) InFinancialYear2014therehasbeenimprovementinspecific

heatandpowerconsumptionofbothkilns.

2) Rawmixoptimization

3) Reductionindegreeofcalcinations

4) Reductioninresidueofrawmeal

5) Someoftheenergyandfuelsavingproposalshavebeen:

i. Kilninletsealreplacement.

ii. ArrestoffalseairinrawmillcircuitandPreheatercircuit

iii. Coalmixoptimization

iv. VFDinstallationatvariouscircuits.

v. OptimizationofCVRMandinternalmodifications

vi. PPCintermixinginsteadofintergrinding.

vii. MaximizingkilnandcoolerhotairutilizationinCVRMby

arrestingfalseairinthecircuit.

viii. Line1kilnoutletsealmodification

REFRACTORY:

1) FURNACEOIL:-Furnaceoilconsumption in13-14 is lessthan

12-13becauseof running theBTK at its optimum speedby

clubbingtemperaturescheduleproductionvolumeindifferent

batches.

2) COAL:-Coalconsumptionperunitproductionin13-14is less

than12-13dueto

a) Payloadforsilicabricks/benchinchamberkilnhasbeen

increased by maintaining solid loading pattern and

removingsilicapartitionwallsandbenchingmaterialsin

twokilns.

b) TwonosofHotairgeneratorsrunningbyproducergas

for drying concast product were stopped after using

wasteheatfrombellkilnsandFBChamberKiln.

3) The electricity consumption KWH/MThas comedown from

301to294ashotairfromchamberkilntodryerwasutilisedfor

dryinggreenCCproducts.Fluegasfrombellkilntodryerwas

utilizedfordryingfinishCCproducts.Further,allthepanelAir

conditionersofCNCmachineshavebeeninterlockedwiththe

operatingcontrolofmachinestoreduceenergyconsumption

duetoidlerunningofairconditioners.

B. TECHNOLOGY ABSORBTION:

Effortsmadeintechnologyabsorption

21


FORM B

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION

Research & Development (R&D)

1. Specific Areas in Which R & D carried out by the Company

CEMENT:

1 InvestigationstoupgradethequalityofPhosphoGypsumfrom

ParadeepandCorramandal Fertilizerplants forusageas set

controller in cement.

2 Usageofplantwaste (bedashandcinder)andmineswaste

(rejectstone)inmanufacturingofcement.

3 Identificationandusageofvariousalternatefuelsavailablein

surrounding areas.

4 ReductionofwaterintakeforefficientgrindinginCVRM.

REFRACTORY:

1 Developmentofmonoblockstopper forhigher life(26hrs)for

CSPcaster

2 Developmentofcarbonfreeboreconfigurationladleshroud.

3 Aluminachromezirconiachimneyblockforglassregenerator.

4 DevelopmentofflowerportSEN

5 Developmentofthermocoupleprotectingtubesfortundish

6 Developmentofthermo-coatreplacingceramicfibreforSEN

7 DevelopmentofMagnesiaspinelCarbonbricksforsteelladle

8 Developmentofsegmentedporousplug

9 DevelopmentofHybridfusedSilicabricks

2. Benefits derived as a result of the above R&D

CEMENT:

1 Optimized addition of Phospho Gypsum and corresponding

reductioninmineralgypsumthusreducingitscost.

2 Conservationofnaturalresources.

3 Usageof industrialwasteseffectivelyas fuelandalternative

raw material thereby reducing fuel cost and improving

sustainability.

REFRACTORY:

1 Tomeethighersequenceasperpresentdemand

2 Forcastingofultralowcarbonsteel

3 Towithstandlesschemical&carryoverattackintopcourseof

glass regenerator where temp.is high

4 Tocontrol&reducenon-metallicinclusioninsteel

5 Suitableforcontinuoustemp.measuringdevice

6 Environmentfriendly.

7 Togethigherlife

8 Topreventchockingofplugs

3. Future Plan of Action

CEMENT:

1. WasteheatrecoverybasedPowerplants.

REFRACTORY:

1. DevelopmentoflowcostDolomitebricksforAOD/Ladle.

2. Development of coating friendly Mag-Al spinel bricks for

cementrotarykiln.

3. DevelopmentofChromebricksforgassifiers.

4. Development of coating repellent erosion resistant Alumina

SiCbricksfortertiaryairductofcementkiln.

5. DevelopmentofZirconiainsertsforvariousapplicationinflow

controlrefractories.

6. Developmentofflipdesignslideplate

7. Fusionofdolomiteandmanufacturingofbrickstherewith.

22


4. Expenditure on R&D

a) Capital `0.57Lacs

b) Recurring `293.22Lacs

c) Total `293.79Lacs

d) TotalR&Dexpenditureasa

Percentageoftotalturnover 0.15%

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

1. In case of imported technology (imported during the last 5

years), following information may be furnished:

a) Technologyimported No Technology hasbeenimportedinlast5years.

b) Yearofimport -c) Has technology been fully

absorbed-

d) Ifnotfullyabsorbed,areaswherethis has not takenplace, reasonsthereforeandfutureplanofaction

N.A.

C. FOREIGN EXCHANGE EARNINGS AND OUT-GO

Activities Relating To Exports; Initiatives Taken To Increase

Exports; Development of New Export Markets for Products

andServices;AndExportMarkets.

REFRACTORY:

SlowdownintheEuropeaneconomycontinuedduring2013-

14&Steel sector is themostaffected. EuropeanRefractory

companieshavebecomeaggressiveinnon-Europeanmarkets

and are offering very competitive prices even for superior

qualityproducts.

TheprojectsinGlassindustryallovertheworldweredeferred

or were not forthcoming due to slow down in the Glass

industry.

Chinese manufacturers who were earlier using traders for

marketing,havenowaggressivelystartedsellingbricksdirectly

to customers which has lead to price pressure.

Your company, however, was able to retain the traditional

marketsofMiddleEastandhasbeensuccessfulinintroducing

its special products to new customers and have been

successful in adding new products which have helped in

growthofexportsfromthepreviousyear.

YourcompanyhasfocusedexportofMagnesiaCarbonbricks

fromOCLGlobalLtdtoitscustomers.

TotalForeignExchangeused :`16633.73Lakhs

TotalForeignExchangeearned :`5458.53Lakhs

23


Annexure-IIITo the Directors’ Report Corporate Governance Report

I. PHILOSOPHY ON CODE OF GOVERNANCE

The Company firmly believes in and continues to practice good corporate governance. Corporate governance seeks to raise the

standardsofcorporatemanagement,strengthenstheBoardsystems,significantlyincreaseitseffectivenessandultimatelyservethe

objectiveofmaximizingtheshareholdersvalue.ThephilosophyoftheCompanyisinconsonancewiththeacceptedprinciplesofgood

governance.

II. BOARD OF DIRECTORS

A) Composition of Board of Directors - The Company has a thoroughly professional Board with a majority of Non-Executive and

Independent Directors.

S.No.

Name of Directors and Directors Identification Number

Designation Category of Director

No. of shares held

No. of Board Meetings attended

No. of other Directorships

Total No. of Committees

Membership Chairmanship1. ShriPradipKumar

KhaitanDIN:00004821

Chairman Non-executiveandNon-Independent

Nil 4 14 4 0

2. Shri Gaurav DalmiaDIN:00009639

ExecutiveViceChairman and Managing Director

Promoter,ExecutiveandNon–Independent

Nil 4 6 3 1

3. Shri D. D. Atal DIN:00951540

WholeTimeDirector andChiefExecutiveOfficer

ExecutiveandNon–Independent

Nil 4 2 0 0

4. Shri D. N. DavarDIN:00002008

Director Non-executiveand Independent

1,500 4 13 5 5

5. ShriPuneetYaduDalmiaDIN:00022633

Director Promoter,Non-executiveand Non Independent

Nil 4 4 1 0

6. Dr. S. R. JainDIN:00364293


Nil 4 2 3 1

7. Dr. R. C. VaishDIN:01068196

Director NonExecutiveand Independent

Nil 4 6 3 1

8. ShriV.P.SoodDIN:00092593


25700 4 0 1 0

24


Notes:

a) FourBoardmeetingswereheldduringtheFinancialYear

2013-14onMay29,2013,August07,2013,October28,

2013,andFebruary10,2014.

b) Other Directorships include only the Directorships in

publiclimitedcompanies.

c) The chairmanship/membership of the committees

reportedaboveincludesthechairmanship/membership

ofthecommitteesoftheCompany.

d) TheAnnualGeneralMeetingwasheldonSeptember14,

2013andwasattendedbyShriD.D.Atal,WholeTime

DirectorandChiefExecutiveOfficerandShriD.N.Davar,

ChairmanoftheAuditCommittee.

e) TheNonExecutiveChairmanhasnotdesiredanofficeat

theCompany’sexpense.

B) Boardprocedure -Thetimegapbetweenanytwomeetings

of the Board of Directors is not more than four months.

The details about performance of the various units of the

Company, financial position, legal compliance, quarterly

results,sharetransferdetails,informationinAnnexureIAand

allotheraspectsoftheCompanywhicharerelevantforreview

oftheBoardofDirectorsarebeinggiveninastructuredformat

at each meeting. The said information complies with the

requirementsoftheCodeofCorporateGovernancewithregard

totheinformationtobeplacedbeforetheBoardofDirectors.

NoDirectorisaMemberinmorethantenCommitteesoracts

asChairmanofmorethanfiveCommitteesofthecompanies

inwhichheisaDirector.EveryDirectorinformstheCompany

aboutthepositionheoccupiesinCompanies/Committeesand

notifiesthechangesasandwhentheytakeplace.

A Committee of Directors decides the urgent business that

arisesinbetweentwoBoardmeetings.TheCommitteeconsists

ofShriD.N.Davar,ChairmanoftheCommitteeandDr.S.R.

Jain,ShriPuneetYaduDalmiaandDr.R.C.Vaish,membersof

theCommittee.ThereisnoCommitteeofDirectorsMeeting

heldduringthefinancialyear2013-14.

C) Inter–serelationship-TheDirectorsarenotrelatedinter–se.

III. AUDIT COMMITTEE

A) Termsofreference-Theroleandtermsofthereferenceofthe

AuditCommitteecovers theareasmentioned inClause49of

theListingAgreementandSection292AoftheCompaniesAct,

1956,besidesothertermsasmaybereferredbytheBoardof

Directors.TheAuditCommitteereviewstheManagementAudit

reports,InternalAuditreportsandActionTakenreportofthe

Managementthereupon,periodically.ItalsoreviewstheAnnual

AccountsandQuarterlyResultsoftheCompanybeforetheyare

placedbeforetheBoardofDirectors.TheAuditCommitteealso

meetstheStatutoryAuditorsandInternalAuditorsperiodically

anddiscussesthefindings,suggestionsandreviewsthemajor

accountingpoliciesfollowedbytheCompany.TheMinutesof

theAuditCommitteemeetingsarecirculatedtotheBoard.

TheAuditCommitteereviewstheauditedfinancialstatements

with reference to theDirector’s Responsibility Statement in

termsof clause (2AA)of section217of theCompaniesAct,

1956. Inaddition to theabove, theCommitteealso reviews

thefollowing:-

a) Management discussion and analysis of financial

conditionsandresultsofoperations.

b) Statement of significant related party transactions

submittedbytheManagement.

i. Astatementinsummaryformoftransactionswith

relatedpartiesintheordinarycourseofbusinessis

placedperiodicallybeforetheauditcommittee.

ii. Details of material individual transactions with

relatedparties,whicharenotinthenormalcourse

ofbusiness,areplacedbeforetheauditcommittee.

iii. Details of material individual transactions with

related parties or others, which are not on an

arm’s length basis, are placed before the Audit

Committee, together with Management’s

justificationforthesame.

c) Management letters/letters of internal control

weaknesses,ifany,issuedbythestatutoryauditors;

d) Internal audit reports relating to internal control

weaknesses;and

e) The appointment, removal and termsof remuneration

oftheInternalAuditoraresubjecttoreviewbytheAudit

Committee.

B) CompositionofAuditCommittee-TheAuditCommittee

comprises three Members Shri D. N. Davar as its

Chairman and Dr. S. R. Jain and Dr. R. C. Vaish, all of

whom are Independent Directors.

25


C) Meetings and attendance - Themeetings of the Audit

CommitteeareusuallyheldbeforetheBoardMeetings

where the Financial Results of the Company are

considered.TheparticularsofAuditCommitteemeetings

heldduring theyear2013-2014andtheattendanceof

themembersareasfollows:

Date of Audit

Committee

meeting

Shri D. N.

Davar

Dr. S. R.

Jain

Dr. R. C.

Vaish

29.05.2013 Present Present Present




IV REMUNERATION OF DIRECTORS

TheremunerationofDirectorsisfixedbytheBoardofDirectors

subjecttoapprovaloftheshareholders.

TheRemunerationCommitteecomprises three Independent

Directors with Shri D. N. Davar as its Chairman and Dr. S. R. Jain

andDr.R.C.Vaishasitsmembers.

The particulars of Remuneration Committee meetings held

duringtheyear2013-2014andtheattendanceofthemembers

areasfollows:

Date of

Remuneration

Committee meeting

Shri D. N.

Davar

Dr. S. R.

Jain

Dr. R. C.

Vaish



TheSittingfeesof`20,000/-permeetingispaidtoNonWhole

Time Directors for attending each of the Board meetings,

Audit Committee meetings, Remuneration Committee and

Committee of Directors besides reimbursement of out of

pocketexpenses.

The NonWhole - Time Directors are also paid commission

within the ceiling of one percent of the yearly profits. The

Shareholders had, at the Annual General Meeting of the

CompanyheldonSeptember14,2013approvedpaymentof

commissiontoNonWholeTimeDirectorsnotexceeding1%of

netprofitsoftheCompanycomputedinthemannerprovided

undersection198(1)oftheCompaniesAct,1956.

The details of sitting fees and commission paid to the Non

Whole-TimeDirectorsduringtheyear2013-14areasunder:

S.

NO.

Name of Director Sitting

Fees

Commission Total

1. ShriPradipKumar

Khaitan

80,000 10,00,000 10,80,000

2. Shri D. N. Davar 2,40,000 7,85,000 10,25,000

3. Dr. S. R. Jain 2,50,000 6,45,000 8,95,000

4. ShriPuneetYadu

Dalmia

90,000 5,75,000 6,65,000

5. Dr. R. C. Vaish 2,00,000 5,75,000 7,75,000

6. ShriV.P.Sood 1,30,000 5,75,000 7,05,000

During the year, the Company has paid `30,68,619/- as

professional fees toM/sKhaitan&Co.,afirm inwhichShri

PradipKumarKhaitan,DirectoroftheCompany,isapartner.

Therewasnootherpecuniaryrelationship/transactionofthe

Non-ExecutiveDirectorsvisavistheCompany.

The terms of appointment and remuneration paid to Shri

Gaurav Dalmia, Executive Vice Chairman and Managing

Directoraregivenbelow:

Shri Gaurav Dalmia

a) Tenure :21stJuly2010to31stMarch2015

b) Remuneration :SalaryandAllowances

:`1,56,00,000/-

Valueofperquisites -`6,54,253/-

ContributiontoPFandother

Funds-`18,27,996/-

Commission:1,00,00,000/-

c) Other terms: The Agreement may be terminated

by either party by giving three months’ notice. If

the Agreement is terminated by the Company, the

Companyneedstopaythreemonthssalaryinlieuof

the notice.

26


The terms of appointment and remuneration paid to

ShriD.D.Atal,WholeTimeDirectorandChiefExecutive

Officer,aregivenbelow:

Shri D. D. Atal

a) Tenure :1stApril2010to31stMarch2015

b) Remuneration :SalaryandAllowances

:`1,26,44,905/-

VariablePay(fortheFY2012-13):

`34,06,390/-

Valueofperquisites -`13,88,540/-

ContributiontoPFandother

Funds–`8,29,975/-

ShriD.D.Atalwillalsobepaidvariableportionofhispay

fortheyear2013-14intheyear2014-15asperpolicyof

theCompanyinthisregard.

c) Other terms: The Agreement may be terminated

by either party by giving three months’ notice. If

the Agreement is terminated by the Company, the

Companyneedstopaythreemonthssalaryinlieuof

the notice.

V STAKEHOLDERS RELATIONSHIP COMMITTEE

The Stakeholders relationship Committee monitors

expeditiousredressalofinvestors’grievances.TheCommittee

consistsofthreeDirectorswithDr.S.R.Jain,aNon-Executive

Director,asitsChairmanandShriV.P.SoodandShriPuneet

YaduDalmiaasitsmembers.

The particulars of Stakeholders relationship Committee

meetingsheldduringtheyear2013-2014andtheattendance

ofthemembersareasfollows:

Date of Stakeholders

relationship

Committee meeting

Dr. S. R.

Jain

Shri Puneet

Yadu

Dalmia

Shri V. P.

Sood


InvestorComplaintsreceived/settledduringtheyear:

S.

No.

Type of

Complaint

Complaints

received

Complaints

redressed

Complaints

pending 1. Transfer/

Transmission

ofShares.

1 1 0

2. Dividend 1 1 0

3. Forfeitureof

shares

0 0 0

4. Miscellaneous

(changeof

address,name

deletion/non

receiptof

AnnualReport,

etc.,)

3 3 0

TOTAL 5 5 0

TheCompanyhasdesignatedane-mailID“[email protected]”for

registeringthecomplaintsbyinvestors/shareholders.Thedetails

aredisplayedontheCompany’swebsitewww.oclindialtd.in.

Nameanddesignationofcomplianceofficer

Ms. Rachna Goria, General Manager (Legal) & Company

Secretary,istheComplianceOfficer.

VI GENERAL BODY MEETINGS

A) Location and time,where Annual GeneralMeetings held in

lastthreeyears–

AGM DATE &

TIME

LOCATION WHETHER SPECIAL

RESOLUTIONS WERE

PASSED 61th

AGM

27th

September

2011 at

4.30P.M.

Company’s

RestHouseat

Rajgangpur-

770 017

(Odisha)

NoSpecialResolution

was passed.

62nd

AGM

17th

September

2012 at

4.30P.M.

Company’s

RestHouseat

Rajgangpur-

770 017

(Odisha)

NoSpecialResolution

was passed.

27


AGM DATE &

TIME

LOCATION WHETHER SPECIAL

RESOLUTIONS WERE

PASSED 63rd

AGM

14th

September

2013 at

4.30P.M.

Company’s

RestHouseat

Rajgangpur-

770 017

(Odisha)

Specialresolutionwas

passedu/s309(7)of

theCompaniesAct,

1956forrenewalof

shareholders decision

topaycommissionfor

afurtherperiodoffive

yearstoNon-WholeTime

Directors@1%ofthe

netyearlyprofitsofthe

company.

ThepreviousAnnualGeneralMeetingoftheCompanywasheld

on14thSeptember2013at4.30p.m.attheCompany’srest

houseat:Rajgangpur-770017,District:Sundargarh(Odisha).

In the absence of Chairman of the Board of Directors, the

meetingwaschairedbyShriD.D.Atal,WholeTimeDirector

andChiefExecutiveOfficeroftheCompany.ShriD.N.Davar,

ChairmanoftheAuditCommittee,alsoattendedtheAnnual

GeneralMeeting.

B) ResolutionspassedbyPostalBallot

Duringthefinancialyear2013-14,followingspecialresolutions

werepassedthroughPostalBallot,pursuanttoSection192A

of the Companies Act, 1956 read with Companies (Passing

ofResolutionbyPostalBallot)Rules,2011.ShriMohanRam

Goenka, Partner, MR & Associates, Practicing Company

Secretary, was appointed as ‘Scrutinizer’ to conduct and

reportthepostalballotresults.

Reference of

Sections

Purpose of the resolution Voting Pattern

Resolutionfor

amendmentof

objectclause

undersection

17ofthe

CompaniesAct,

1956

Tocarryonthebusinessof

developing,constructing,

establishing,commissioning,

settingup,operatingand

maintaining electric power

generatingstationsbased

onconventional/non-

conventionalresourcesand

alsotoofferconsultancy

forpowertransmission,

distributionandpower

marketingtoanycustomer”.

30 votes were

castinfavour

ofand1vote

was cast

against the

resolution.

Reference of

Sections

Purpose of the resolution Voting Pattern

Resolutionfor

Commencement

ofnewbusiness

undersection

149(2A)ofthe

CompaniesAct,

1956

For commencement

ofabovementioned

business.

30 votes were

castinfavour

ofand1vote

was cast

against the

resolution.

VII DISCLOSURES

A) TheCompanyduringtheyearhasnotenteredintotransactions

of material nature with its promoters, the Directors, their

relatives,subsidiarycompanies,etc.thatmayhavepotential

conflictofinterestwiththeCompany.Nopenalties,strictures

havebeenimposedontheCompanybythestockexchanges

orSEBIonanymattersrelatedtocapitalmarketsduringthe

last3years.

B) ParticularsofcontractinwhichDirectorsareinterested

TheCompanyhasnotenteredintoanycontractinwhichany

oftheDirectorsisinterested.

C) Code of Conduct: The Company’s Board of Directors and

officers inSeniorManagementhaveconfirmedcompliance

withtheCodeofConductoftheCompanyforthefinancial

year 2013-14. A declaration to this effect by the Whole

Time Director forms part of this report. The Code of

ConductframedforcompliancebytheDirectorsandSenior

Management is available on the Company’swebsitewww.

oclindialtd.in.

D) Risk Management: Risk evaluation and management is an

ongoing process within the Company. The Company has

identifiedthemajorriskareasandlaiddownframeworkfor

assessmentofriskswhicharereviewedfromtimetotime.

E) Details of compliance with mandatory requirements and

adoptionofnon-mandatoryrequirements

TheCompanyhascompliedwithallmandatoryrequirements

ofclause49oftheListingAgreement.

ARemunerationCommitteeoftheBoardisinplace.Detailsof

theRemunerationCommitteehavebeenprovidedunderthe

sectionIV“RemunerationofDirectors”.

28


F) TradingintheCompany’ssharesbyDirectorsandDesignated

Employees

As per the SEBI (Prohibition of Insider Trading) Regulations,

1992,asamendedfromtimetotime,theCompanyisrequired

to have a ComplianceOfficerwho is responsible for setting

forth policies, procedures, monitoring adherence to the

rules for the prevention of price sensitive information, pre-

clearanceoftrade,monitoringoftradesandimplementation

of the Code of Conduct for trading in Company’s securities

undertheoverallsupervisionoftheBoard.TheCompanyhas

adoptedaCodeforPreventionofInsiderTrading.Ms.Rachna

Goria,GeneralManager(Legal)&CompanySecretary, isthe

complianceOfficerinrespectofcomplianceoftheCode.

VIII. MEANS OF COMMUNICATION

The Company apprises the shareholders through Annual

reports, publication of un-audited quarterly results and

audited financial results in Economic Times (English)

and in Oriya language newspaper. The Company is also

giving information about its products through its Web site

www.oclindialtd.in and www.ocl.in.

IX. SHAREHOLDERS INFORMATION

A) Generalinformation

RegisteredOffice : Rajgangpur-770017,(Odisha)

CIN L26942OR1949PLC000185

CorporateOffice : 17thFloor,NarainManzil

23,BarakhambaRoad

NewDelhi-110001

DetailsofPlant : CEMENTandREFRACTORY

location At:Rajgangpur-770017

Dist.:Sundargarh(Odisha)

KAPILASCEMENTMANUFACTURING

WORKSCuttack-753004(Odisha)

BENGALCEMENTWORKS

AshokNagar,CorporationBankBuilding,

Medinipur-721101(WestBengal)

Financialyear : 1stAprilto31stMarch

AnnualGeneral : 13thSeptember,2014at4.30PM

Meeting RestHouseoftheCompanyat

Date,timeand Rajgangpur-770017,

Venue Dist.Sundargarh(OdishaState)

BookClosure : 08thSeptember2014to

13thSeptember2014

(bothdaysinclusive).

Dividendpayment : Dividendwillbepaidafter13th

September,2014subjectto

declarationbytheshareholdersat

theAnnualGeneralMeeting.

B) Appointment/ReappointmentofDirectors

The appointment/re-appointment of Directors is

communicated to shareholders through the Notice of the

Annual GeneralMeeting. In the case of new appointments

information about the new Director is given through

explanatorystatementannexedtotheNotice.

C) FinancialResults

The Company’s quarterly un-audited results and half yearly

un-auditedresultsaresubjectedtolimitedreviewbyAuditors

and Annual results are subjected to Audit by the Statutory

Auditors. Quarterly un-audited and annual audited results

arepublished innewspapersandarealsoprovidedtoStock

Exchanges. The Company displays the financial results and

shareholding pattern on the Company’s Web site www.

oclindialtd.in.

D) ShareTransfersystemandRegistrars&shareTransferAgents

Pursuant to directions of SEBI the facility to hold the

Company’ssharesinelectronicformismadeavailabletothe

shareholders as the Company has joined both Depositories

namelyNSDLandCDSL.ShareTransferDocumentsforphysical

transferandrequestsfordematerializationofsharesaresent

totheCompany’sRegistrarsM/sCBManagementServices(P)

LimitedatP-22BondelRoad,Kolkata-700019.

E) ListingonStockExchanges

The Company’s equity shares continue to be listed and

actively tradedonNational Stock Exchangeof India Limited

andBombayStockExchangeLimited.TheCompanypaidthe

listingfeefortheyear2013-14totheBombayStockExchange

LimitedandNationalStockExchangeof IndiaLimitedwithin

thestipulatedtime.

Name of the Stock Exchange Code for Equity sharesTheBombayStockExchangeLimited 502165

TheNationalStockExchangeof

IndiaLimited

OCL

29


F) SharepricesasperquotationsofBombayStockExchangeLimited&NationalStockExchangeofIndiaLimited

Month Bombay Stock Exchange Limited National Stock Exchange of India LimitedHigh (`) Low (`) High (`) Low (`)

April 2013 151.50 143.50 151.95 144.00May2013 156.95 136.00 156.50 139.00June 2013 153.75 135.00 151.00 135.50July2013 153.85 120.60 154.45 118.00August 2013 137.00 103.55 136.60 104.40September2013 142.95 127.00 140.00 126.00October2013 148.75 130.00 147.35 131.00November2013 149.00 132.20 146.90 135.00December2013 171.25 142.60 171.10 142.00January2014 194.25 152.10 194.50 150.65February2014 165.35 145.05 168.00 130.50March 2014 203.00 148.30 202.00 151.00

G) Shareholdingpatternason31stMarch,2014

Category Physical NSDL CDSL TotalResident Individuals 1452118 4945774 822532 7220424FinancialInstitutions 17500 -- -- 17500ForeignInstitutionalInvestors 300 226473 -- 226773ForeignNationals 17080 -- -- 17080Non Resident Indians 19635 2508593 6580 2534808BodiesCorporate 1380839 32469087 103985 33953911ClearingMember -- 59076 9584 68660Mutual Funds -- -- -- --Trusts -- 12798564 -- 12798564Banks 32245 26555 3700 62500OverseasCorporateBody -- -- -- --Insurance Companies -- -- -- --Total 2919717 53034122 946381 56900220

H) DistributionofShareholdingason31stMarch2014

Range No. of Shareholders % of Shareholders No. of Shares % of Shares1-100 4973 49.40 219389 0.39101-250 1595 15.84 285836 0.50251-500 1282 12.73 513958 0.90501-1000 1001 9.94 768942 1.351001-2000 639 6.35 918491 1.612001-3000 201 2.00 508933 0.893001-4000 86 0.85 302995 0.534001-5000 61 0.61 278462 0.495001-10000 114 1.13 754852 1.3310001&ABOVE 115 1.14 52348362 92.00TOTAL 10067 100.00 56900220 100%

30


I) Performance in comparison to broad-based indices, i.e., BSE Sensex and S&P CNX Nifty.

OCL SHARE PRICE ON BSE VIS A VIS BSE SENSEX April2013-March2014

Months BSE Sensex Close OCL Share Price (on BSE)High ` Low ` Close `


24000

23500

23000

22500

22000

21500

21000

20500

20000

19500

19000

18500

18000

200

180

160

140

120

100

80

60

40

20

0

Apr-13

May-13

Jun-13

Jul-1

3

Aug

-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

BSE

Sens

ex

OCL Share Price on BSE vis a vis BSE Sensex

BSE Sensex OCL Share Price (on BSE) Close

OCL

Sha

re P

rice

on

BSE

(Clo

sing

)

31


OCL SHARE PRICE ON NSE VIS A VIS S&P CNX NIFTYApril2013-March2014

Months S & P CNX Nifty Close OCL Share Price (on NSE)High ` Low ` Close `


6800

6600

6400

6200

6000

5800

5600

5400

200

190

180

170

160

150

140

130

120

110

100

Apr-13

May-13

Jun-13

Jul-1

3

Aug

-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

S&P CNX Nifty OCL Share Price (on NSE) Close

OCL Share Price on NSE vis a vis S&P CNX Nifty

S&P

CNX

NIF

TY

OCL

Sha

re P

rice

on

NSE

(Clo

sing

)

32


AUDITORS’ REPORT ON CORPORATE GOVERNANCE

To the Shareholders of OCL India Limited

1. WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyOCLIndiaLimited(“theCompany”)fortheyearended

March31,2014asstipulatedinClause49oftheListingAgreementofthesaidCompanywithStockExchangesinIndia.

2. TheComplianceofconditionsofCorporateGovernanceistheresponsibilityoftheCompany’smanagement.Ourexaminationwas

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

conditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

3. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhas

compliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedListingAgreement.

4. WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectiveness

withwhichthemanagementhasconductedtheaffairsoftheCompany.

For V. SANKAR AIYAR & CO.Chartered Accountants

ICAIFRN:109208W

(R. RAGHURAMAN)Place:NewDelhi Partner

Date:May13,2014 MembershipNo.81350

DECLARATION BY MR. D. D. ATAL, CHIEF EXECUTIVE OFFICER AND WHOLE TIME DIRECTOR

TO

THEMEMBERSOFOCLINDIALIMITED

BasedontheaffirmationprovidedbytheDirectorsandpersonsinSeniorManagementoftheCompany,itisdeclaredthatalltheBoard

membersandSeniorManagementpersonnelarecomplyingwiththeCodeofConductframedbytheCompanyfortheDirectorsandSenior

Management.

For

OCL INDIA LIMITED

D. D. Atal

WholeTimeDirectorandChiefExecutiveOfficer

Dated:May13,2014

33


Independent Auditors’ ReportTotheMembersofOCLIndiaLimtied

REPORT ON FINANCIAL STATEMENTS

We have audited the accompanying financial statements of OCL India Limited (“the Company”), which comprise the BalanceSheet as at 31stMarch 2014, the Statement of Profit & Loss andtheCash FlowStatement for the year thenendedanda summaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position,financialperformanceandcashflowsoftheCompanyinaccordancewiththeAccountingStandardsreferredtoinsub-section(3C)ofsection211oftheCompaniesAct,1956(“theAct”)readwithGeneralCircular15/2013 dated 13th September 2013 of the Ministry of CorporateAffairs in respect of Section 133 of the Companies Act, 2013. Theresponsibility includes thedesign, implementationandmaintenanceofinternalcontrolrelevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbased on our audit.We conducted our audit in accordancewith theStandardsonAuditingissuedbytheInstituteofCharteredAccountantsofIndia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.

An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor’s judgement, includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant tothe Company’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in thecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluating the appropriateness of accounting policies used and thereasonablenessoftheaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OPINION

Inouropinionandtothebestofour informationandaccordingtotheexplanations given tous, thefinancial statements give the information

requiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

a) inthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasat31stMarch2014;

b) inthecaseoftheStatementofProfitandLoss,oftheProfitfortheyearendedonthatdate;and

c) inthecaseofCashFlowStatement,of thecashflowsfortheyearendedonthatdate.

REPORT ON OTHER LEGAL AND REGULATORY REqUIREMENTS

1 Asrequiredbysection227(3)oftheAct,wereportthat:

(a) wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;

(b) inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks;

(c) theBalanceSheet, StatementofProfitand Loss andCashFlowStatementdealtwithbythisreportareinagreementwiththebooksofaccount;

(d) in our opinion, theBalance Sheet, Statement of Profit andLossandCashFlowStatementcomplywiththeAccountingStandards referred to in sub-section (3C) of section 211 oftheCompaniesAct,1956readwithGeneralCircular15/2013dated 13th September 2013 of the Ministry of CorporateAffairsinrespectofSection133oftheCompaniesAct,2013.

(e) On thebasisofwritten representations received from thedirectorsason31stMarch2014andtakenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31.03.2014frombeingappointedasadirector intermsofclause(g)ofsub-section(a)ofsection274oftheCompaniesAct,1956.

2. AsrequiredbytheCompanies(Auditor’sReport)Order,2003(“theOrder”)issuedbytheCentralGovernmentofIndiaintermsofsub-section(4A)ofsection227oftheAct,weencloseintheannexure,astatementonthemattersspecifiedinparagraphs4and5ofthesaidOrdertotheextentapplicable,onthebasisofsuchchecksofthebooksandrecordsoftheCompanyasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous.

For V. Sankar Aiyar & Co.Chartered Accountants

ICAIFirmRegn.No.109208W

R. RaghuramanPlace :NewDelhi PartnerDated :13.05.2014 MembershipNo.81350

34


Annexure referred to in paragraph 2 of the Auditors’ Report to the shareholders of OCL India Limited for the year ended 31st March 2014

i a) TheCompanyismaintainingproperrecordsshowingfull

particulars, including quantitative details and situation

offixedassets.

b) As explained to us and keeping in view that physical

verification of the fixed assets covering a substantial

valueoftheassetswascarriedoutbyanoutsideagency

in earlier year, the management has carried out the

physical verificationof itsassetsonceduring theyear

except for furniture&fixturesand somepartofoffice

equipments.Accordingtoinformationandexplanations

giventous,nomaterialdiscrepancieshavebeennoticed

to the extent of such verification. In our opinion the

frequencyofverificationisreasonableinrelationtosize

ofthecompany.

c) Since there is no substantial disposal of fixed

assets during the year, the preparation of financial

statementsonagoingconcernbasisisnotaffectedon

this account.

ii a) Thestockoffinishedgoods,stores,sparepartsandraw

materials,exceptthoseheldbyconsigneesandstoredin

customerpremises,havebeenphysicallyverifiedbythe

managementatreasonableintervals.

b) Inouropinion,theproceduresofphysicalverificationof

inventoryfollowedbythemanagementarereasonable

andadequateinrelationtothesizeoftheCompanyand

thenatureofitsbusiness.

c) In our opinion, the Company is maintaining proper

recordsofinventoryandnomaterialdiscrepancieswere

noticedonphysicalverification.

iii a) The Company has not granted any loans, secured or

unsecured,tocompanies,firmsorotherpartiesrequired

tobecovered intheregistermaintainedundersection

301oftheCompaniesAct,1956.

b) The Company has not taken any loans, secured or

unsecured, from companies, firms or other parties

requiredtobecoveredintheregistermaintainedunder

section301oftheCompaniesAct,1956.

iv In our opinion and according to the information and

explanationsgiventousandhavingregardtotheexplanations

inrespectofthemannerinwhichthepurchasepriceofsome

ofthe itemsaredeterminedorwherealternatequotations

arenotavailable,thereareadequateinternalcontrolsystem

commensuratewiththesizeoftheCompanyandthenature

ofitsbusinessforthepurchaseofinventoryandfixedassets

andforthesaleofgoodsandservices.Duringthecourseof

our audit,we have not observed any continuing failure to

correctmajorweaknesses in internalcontrolsystemof the

Company.

v According to the information given to us , there are no

contracts or arrangements during the year that need to be

enteredintotheregister inpursuanceofSection301ofThe

CompaniesAct,1956.Therefore,theProvisionsofclause4(v)

oftheorderarenotapplicabletotheCompany.

vi Inouropinionandaccordingtoinformationandexplanations

giventous,theCompanyhascompliedwiththeprovisionsof

sections58Aand58AAoranyotherrelevantprovisionsofthe

Actandtherulesmadethereunder,whereapplicable,with

regardtodepositsacceptedfromthepublic.

vii The Company has an internal audit system, which in our

opinion, is commensurate with its size and nature of its

business.

viii Wehavebroadlyreviewedthebooksofaccountsmaintained

bytheCompany,pursuanttotherulesmadebytheCentral

Government for the maintenance of cost records under

clause(d)ofsub-section(1)ofsection209oftheCompanies

Act, 1956 and are of the opinion that prima facie, the

prescribed accounts and records have been maintained.

Wehavenot,however,madeadetailedexaminationofthe

recordswithaviewtodeterminewhethertheyareaccurate

and complete.

ix a) AccordingtotherecordsoftheCompany,theCompany

has been generally regular in depositing undisputed

statutory dues including Provident Fund, Investor

Education and Protection Fund, Employees’ State

Insurance, Income-tax, Sales-tax, Wealth Tax, Service

Tax, Customs Duty, Excise Duty, Cess and any other

statutorydueswiththeappropriateauthorities.There

were no arrears of undisputed statutory dues as at

31stMarch,2014,whichwereoutstandingforaperiod

ofmore than sixmonths from the date they became

payable.

35


b) The disputed dues of different years, which have

remained unpaid as on 31st March, 2014, for which

appealsarependingasunder:

Nature of dues

Year Amount (` in lacs)

Forum where pending

Orissa SalesTax

1995-96and1997-98to2000-01

162.63 OrissaSalesTaxTribunal

Central SalesTax

2006-07 0.11 Addl. Commissioner ofSalesTax,cuttack

Orissa VAT

2005-06 293.35 CommissionerofSalesTax

WestBengalSalesTax

1996-97,1999-00,2001-02, 2004-05,and2010-11

310.74 WestBengalCommercial TaxesAppellate&RevisionalBoard

BiharSalesTax

2010-11 96.21 Joint Commissioner ofSalesTax(A),Patna

Cenvat Credit

01.12.2006 to 30.06.2008and 30.06.2011

3,756.38 CESTAT,KolkataCCE,BBSR

Income Tax

A.Y.2003-2004and2005-06

17.13 ITAT Delhi

Income Tax

A.Y.2005-06to2009-10

474.19 CIT(A)Delhi

x TheCompanyhasnoaccumulatedlossesandhasnotincurred

cashlossesduringthefinancialyearcoveredbyourauditorin

theimmediatelyprecedingfinancialyear.

xi On the basis of the verification of records and information

andexplanationsgiventous,theCompanyhasnotdefaulted

in repayment of dues to financial institutions or banks or

debentureholders.

xii TheCompanyhasnotgrantedloansandadvancesonthebasis

ofsecuritybywayofpledgeofshares,debenturesandother

securities.

xiii TheCompanyisnotachitfund/nidhi/mutualbenefitfund

/ society. Therefore, the provisions of clause 4(xiii) of the

Companies(AuditorsReport)Orderarenotapplicable.

xiv TheCompany is not dealing or trading in shares, securities,

debenturesandotherinvestments.Therefore,theprovisions

ofclause4(xiv)oftheCompanies(AuditorsReport)Orderare

notapplicable.

xv In our opinion and according to the information and

explanationsgiventous,thetermsandconditionsonwhich

the company has given guarantees for the loans taken by

others from banks, are not, prima facie, prejudicial to the

interestoftheCompany.

xvi In our opinion and according to the information and

explanationsgiventoustermloanstakenduringtheyearwere

appliedforthepurposeforwhichtheloanswereobtained.

xvii According to the information and explanations given to us,

theCash Flow statementexaminedbyus andonanoverall

examinationofthebalancesheetoftheCompany,wereport

thatfundsraisedonshort-termbasishavenotbeenusedfor

long term investment.

xviii Duringtheyear,theCompanyhasnotmadeanypreferential

allotmentofsharestopartiesandcompaniescoveredinthe

Registermaintainedundersection301oftheAct.

xix TheCompanyhasnotissuedanydebenturesduringtheyear.

Therefore,thequestionofcreatingsecurity/chargedoesnot

arise.

xx Sincetherewerenopublicissueofsecuritiesduringtheyear,

verificationoftheenduseofmoneydoesnotarise.

xxi Based on the audit procedure performed and the

representation obtained from the management, we report

thatnocaseofmaterialfraudonorbytheCompanyhasbeen

noticedorreportedduringtheyearunderaudit.

For V. Sankar Aiyar & Co.

Chartered Accountants

ICAIFirmRegn.No.109208W

R. Raghuraman

Place :NewDelhi Partner

Dated :13.05.2014 MembershipNo.81350

36


Balance SheetAsat31stMarch,2014

` Lakhs Note no. 2013-14 2012-13

I. EqUITY & LIABILITIESShareholders' Funds

Share Capital 2 1,138.50 1,138.50Reserves and Surplus 3 1,09,852.93 1,02,728.12

1,10,991.43 1,03,866.62Non Current Liabilities

Long-termborrowings 4 53,567.65 43,259.14Deferredtaxliabilities(Net) 5 13,641.04 12,952.24Otherlongtermliabilities 6 3,280.06 3,179.99Long-termprovisions - -

70,488.75 59,391.37Current Liabilities

Short-termborrowings 7 8,251.12 24,644.38Tradepayables 8 21,279.15 16,097.33Othercurrentliabilities 9 34,789.65 29,888.03Short-termprovisions 10 3,104.45 1,347.03

67,424.37 71,976.77Total 2,48,904.55 2,35,234.76

II. ASSETSNon-current Assets

Fixedassets 11Tangibleassets 1,22,855.62 1,04,672.62Intangibleassets 505.83 455.93Capitalwork-in-progress 15,883.12 13,639.46Intangibleassetsunderdevelopment - 31.06

Non-currentinvestments 12 6,217.39 6,212.39Long-termloansandadvances 13 1,113.02 3,849.01Othernon-currentassets 14 27.93 27.02

1,46,602.91 1,28,887.49Current Assets

Current investments 15 24,513.13 26,518.72Inventories 16 31,874.64 35,254.25Tradereceivables 17 22,682.39 17,495.03Cash&bankbalances 18 8,555.32 14,024.58Short-termloansandadvances 13 14,140.83 12,701.98Other current assets 19 535.33 352.71

1,02,301.64 1,06,347.27Total 2,48,904.55 2,35,234.76

SignificantAccountingPoliciesOthernotesformingpartofthefinancialstatementsTheaccompanyingnotesformanintegralpartofthefinancialstatements

128

forOCL INDIA LIMITEDOnbehalfoftheBoard

AnnexuretoourReportofDate Rachna Goria Gaurav Dalmia forV Sankar Aiyar & Co. (GMLegal&CompanySecretary) (ExecutiveViceChairman CharteredAccountants &ManagingDirector) FirmRegistrationNo:109208W

R. Raghuraman D N Singh D. D. Atal Place:NewDelhi Partner ExecutiveDirector(Finance) (WholeTimeDirector&CEO)Date:13.05.2014 MNo.81350 &ChiefFinancialOfficer

37


Statement of Profit and LossFortheyearended31stMarch,2014

` Lakhs Note no. 2013-14 2012-13

INCOME

Revenuefromoperations 20 1,85,551.59 1,81,728.89

Other income 21 3,655.39 2,531.40

1,89,206.98 1,84,260.29

EXPENDITURE

Costofmaterialsconsumed 22 41,172.25 44,686.51

Purchasesofstockintrade 23 3,832.72 7,734.66

Freight,clearing&handlingonownclinker 3,497.57 2,658.00

Changesininventoriesoffinishedgoods&workinprogress&stockintrade 24 3,237.26 (10371.17)

Employeebenefitsexpense 25 11,095.88 9,659.21

Powerandfuel 28,443.78 31,722.74

Finance costs 26 6,807.38 7,704.10

Depreciation&amortizationexpense 12,640.72 13,843.39

Otherexpenses 27 65,171.06 53,978.82

1,75,898.62 1,61,616.26

PROFIT BEFORE TAXATION 13,308.36 22,644.03

TaxExpense-CurrentTax 3,039.95 6,100.00

Less:MATcredit (208.02) -

-DeferredTax 688.80 905.44

PROFIT/ (LOSS) FOR THE YEAR AFTER TAX 9,787.63 15,638.59

EARNINGPEREQUITYSHARE(FaceValueof`2/-each)

1)Basic(`) 17.20 27.48

2)Diluted(`) 17.20 27.48


128




38


Cash FlowFortheyearended31stMarch,2014

` Lakhs2013-14 2012-13

A. CASH FLOW FROM OPERATING ACTIVITIESProfitbeforetaxfromcontinuingoperations 13,308.36 22,644.03Adjustmentfor:

Depreciation&AmortizationExpense 14,814.11 16,157.39Loss/(Profit)onsaleoffixedassets 1.79 10.89 EffectofExchangeRatedifference 943.11 254.00 ProfitonsaleofInvestment (19.55) (1.58)Interestexpense 6,564.87 7,296.31Interest receipt on investment (59.25) (70.03)Dividend on Investment (871.80) (1,283.33)

21,373.28 22,363.65Operatingprofitbeforeworkingcapitalchanges 34,681.64 45,007.68AdjustmentsforWorkingCapitalchanges

Increase/(decrease)intradepayables 5,181.82 5,055.04Increase/(decrease)inshorttermprovisions 93.15 39.65 Increase/(decrease)inothercurrentliabilities 4,738.24 4,947.40Increase/(decrease)inotherlongtermliabilities 100.07 1,196.66Decrease/(increase)intradereceivables (5,187.36) (5,426.25)Decrease/(increase)ininventories 3,379.61 (9,229.08)Decrease/(increase)inlongtermloansandadvances 25.49 (63.76)Decrease/(increase)inshorttermloansandadvances (1,912.12) (1,623.75)Decrease/(increase)inothercurrentassets (182.62) 321.59 Decrease/(increase)inothernoncurrentassets (0.91) 18.97

6,235.37 (4,763.53)CashgeneratedfromOperations 40,917.01 40,244.15

TaxPaid(Net) (2,358.66) (6,688.07)NetCashfromOperatingActivities 38,558.35 33,556.08

B. CASH FLOW FROM INVESTING ACTIVITIESPurchaseofFixedAssets (32,650.26) (17,143.19)Sale/writeoffofFixedAssets 99.36 64.50 Interest receipt on investment 59.25 70.03 ProfitonsaleofInvestment 19.55 1.58 PurchaseofnoncurrentInvestment(Net) (5.00) (4,865.69)PurchaseofcurrentInvestment(Net) 2,005.59 (9,795.92)Advanceforallotmentofshares - -Loansgiven - -Loansgivenreceivedback - 1,000.00Dividend on Investments 871.80 1,283.33NetCashgenerated/(-)usedinInvestingActivities (29,599.71) (29,385.36)

39


Cash FlowFortheyearended31stMarch,2014(contd.)

` Lakhs2013-14 2012-13

C. CASH FLOW FROM INVESTING ACTIVITIESIncrease/(decrease)inlongtermborrowings 10,471.89 (10,165.92)Increase/(decrease)inshorttermborrowings (16,393.26) 16,687.44EffectofExchangeRatedifference (943.11) (254.00)CapitalSubsidyReceived - -IPRBenefitReceived - 576.84 DividendPaid (853.50) (1,138.01)TaxesonDividendPaid (145.05) (184.61)Interim Dividend paid - (1,422.51)Taxoninterimdividendpaid - (230.77)Interestexpense (6,564.87) (7,296.31)NetCashfromFinancingActivities (14,427.90) (3,427.85)NetchangesinCashandbankbalances (5,469.26) 742.87

NetIncrease/(-)DecreaseinCashandBankbalancesBalanceattheendoftheyear

(Referfootnoteinnoteno18)

8,555.32 14,024.58

Balanceatthebeginningoftheyear 14,024.58 13,281.71 (5,469.26) 742.87




40


1 SIGNIFICANT ACCOUNTING POLICIES

1.1 Accounting Convention

The financial statements are prepared under historical cost

convention(exceptforcertainfixedassetswhicharerevalued),

on a going concern basis and in accordance with applicable

accounting standards prescribed under the Companies

(AccountingStandards)Rules,2006.

1.2 Use Of Estimates

Thepreparationoffinancialstatementsrequiresmanagement

to make certain estimates and assumptions that affect the

amount reported in the financial statements and notes

thereto.Differencesbetweenactualresultsandestimatesare

recognisedintheperiodinwhichtheymaterialise

1.3 Fixed Assets including intangible Assets

Land, Buildings, Plant and Machinery relating to Cement

and Refractory Works acquired/installed upto 31.12.81 were

revaluedasat31.12.85.Allotherfixedassetsareshownatcost

(netofcenvat). Borrowingcostsattributable to theacquisition

of qualifying assets and all significant costs incidental to the

acquisitionofassetsarecapitalised.Intangibleassetsarerecorded

atconsiderationpaidforacquisitionofsuchassetsandarecarried

atcostlessaccumulatedamortisation.CapitalWorkinProgress&

IntangilbeAssetsunderdevelopmentareshownatcost.

1.4 Depreciation and Amortisation

Depreciation on Plant and Machinery added in Cement &

Refractoryafter31.12.81isprovidedonstraightlinemethod

anddepreciationonallotherassetsincludingKapilasCement

Works, Clinkerisation Unit at Rajgangpur (Line-II), Captive

PowerPlant&BengalCementWorksisprovidedonreducing

balance method . Depreciation has been calculated in the

manner and at the rates specified in Schedule XIV to the

CompaniesAct,1956.Anintangibleassetsismeasuredatcost

andamortisedsoastoreflectthepatterninwhichtheassets

economic benefit are consumed. The useful life has been

estimatedas3-5yearsincasecomputersoftware.

1.5 Investments

Long term Investments are valued at cost. Provision

for diminution in value is made, if in the opinion of the

management, such a decline is considered other than

temporary.CurrentInvestmentarevaluedatcostorfairvalue

which ever is lower.

1.6 Inventories

Stocksoffinishedandpartlyfinishedproductsarevaluedat

lowerofcostornetrealisablevalueandforthispurpose,cost

isdeterminedonabsorptioncostingmethod.Costoffinished

goods includes excise duty. Raw Materials, other inputs,

storesandsparesarevaluedatlowerofcost(netofcenvat)or

netrealisablevalueafterprovidingforobsolescence.Costis

determinedonFIFO/WeightedAverageBasis.

1.7 Revenue Recognition and Accounting for Sales & Services

Revenue from domestic sale of goods is recognised when

significantrisksandrewardsaretransferredtothecustomers.

Export Sales are accounted for on the basis of date of Bill

of Lading. Sales are net of trade discount and sales tax but

inclusiveofexciseduty.Bonusorpenaltylinkedtooperating

efficiency of products, where applicable, is accounted for

uponcrystalization. Income fromservicesareaccounted for

when becomes due. Interest income is recognised on time

proportionatebasis.Dividendincomeisaccountedfor,when

therighttoreceivethesameisestablished.

1.8 Treatment of Employee Benefits

TheCompanymakesregularcontributionstodulyconstituted

FundssetupforProvidentFund,FamilyPension,Gratuityand

Superannuationwhicharechargedtorevenue.Contribution

togratuityfundandprovisionforleaveencashmentaremade

onthebasisofactuarialvaluation.

1.9 Research and Development

Revenue expenses are charged off in the year in which it

is incurred under the natural heads of account. Capital

expenditure,whenincurredisaddedtothecostoffixedassets.

Notes to the Financial Statements for the year ended 31St March, 2014

41


1.10 Foreign Currency Transactions

Foreigncurrencytransactionsarerecordedatexchangerate

prevailing on the date of transaction/realisation. Current

assets/liabilities are restated at rates prevailing at the year

endandresultantexchangedifferencearerecognised inthe

Statement of Profit and Loss. In case of forward exchange

contracts,thepremiumordiscountarisingattheinceptionof

suchcontractsisamortisedoverthelifeofthecontractaswell

astheexchangedifferenceonsuchcontractsi.e.,differences

betweentheexchangeratesatthereporting/settlementdate

andtheexchangerateonthedateofinception/lastreporting

date, is recognised in the Statement of Profit & Loss. Non-

monetary itemsdenominated inforeigncurrencyarevalued

attheexchangerateprevailingonthedateoftransaction.

1.11 Deferred Tax

In accordance with Accounting Standard-22 ‘Taxes on

Income,deferred tax is recognised, subject to consideration

of prudence, being the difference between accounting and

taxableincomethatoriginateinoneyearandarecapableof

reversalinsubsequentyear.

1.12 Impairment of Assets

Ateachbalancesheetdate, theCompanyassesseswhether

thereisanyindicationthatanassetmaybeimpaired.Ifany

suchindicationexists,theCompanyestimatestherecoverable

amount. If the carrying amount of the assets exceeds its

recoverableamount,animpairmentlossisrecognisedinthe

StatementofProfitandLosstotheextentthecarryingamount

exceedstherecoverableamount.

1.13 Provisions, Contingent Liability and Contingent Assets

The Company creates a provision when there is a present

obligationasaresultofpasteventthatprobablyrequiresan

outflowofresourcesandareliableestimatecanbemadeof

theamountofobligation.Adisclosureofcontingent liability

is made when there is a possible obligation or a present

obligationthatwillprobablynotrequireoutflowofresources

or where a reliable estimate of the obligation can not be

made.ContingentAssetsneitherrecognisednordisclosedin

thefinancialstatement.

42


` Lakhs2013-14 2012-13

2. SHARE CAPITALAuthorised Shares

1,00,000(PreviousYear:1,00,000)Sharesof`100 each 100.00 100.007,00,00,000(PreviousYear:7,00,00,000)Sharesof`2 each 1,400.00 1,400.00

1,500.00 1,500.00Issued Shares

6,36,31,805(PreviousYear6,36,31,805)OrdinarySharesof`2 each 1,272.64 1,272.64Subscribed & paid up shares

5,69,00,220(PreviousYear5,69,00,220)OrdinarySharesof`2each,fullypaidup 1,138.00 1,138.00Add:SharesForfeitedAccount 0.50 0.50Total Subscribed & Paid up Share Capital 1,138.50 1,138.50

a) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars 31st March 2014 31st March 2013 No of Shares

(in lakhs)

(in lakhs `) NoofShares

(inlakhs)

(inlakhs`)

OrdinarySharesoutstandingatthebeginningoftheyear 569.00 1,138.00 569.00 1,138.00OrdinarySharesissuedduringtheyear - - - -OrdinarySharesboughtbackduringtheyear - - - -OrdinarySharesoutstandingattheendoftheyear 569.00 1,138.00 569.00 1,138.00

b) Terms/ rights attached to ordinary shares

TheCompanyhasissuedonlyoneclassofordinaryshareshavingaparvalueof`2/-pershare. Eachholderofordinarysharesis

entitledtoonevotepershare.TheCompanydeclaresandpaysdividendsinIndianrupees.ThedividendproposedbytheBoardof

DirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.

Duringtheyearended31stMarch2014,theamountofdividendpersharerecognisedfordistributiontoordinaryshareholdersis`4/-

(Previousyear:InterimDividend`2.50/-andFinaldividend`1.50/-pershare).

Ineventofliquidationofthecompany,theholdersofordinaryshareswillbeentitledtoreceiveremainingassetsofthecompany,after

distributionofallpreferentialamounts.

Thedistributionwillbeinproportiontothenumberofordinarysharesheldbytheshareholders.

c) Details of shareholders holding more than 5% shares in the Company

S. No. NameoftheShareholders As at 31 March 2014 As at 31 March 2013 No. of Shares

held (In Lakhs)

% of Holding No.ofShares

held(InLakhs)

%ofHolding

1 MriduHariDalmia(C/oMHDalmiaParivarTrust) 127.78 22.46% 122.56 21.54%2 DalmiaCement(Bharat)Limited 273.12 48.00% 258.15 45.37%3 DhartiInvestmentsandHoldingsLimited 34.77 6.11% 35.06 6.16%

d) Aggregatenumberofbonussharesissuedandsharesboughtbackduringtheperiodoffiveyearsimmediatelyprecedingthereporting

date:Nil.

43


e) Inrespectofsharesissuedforconsiderationotherthancash,1,23,52,500ordinarysharesof`2/- eachfullypaidupwerealloted

duringtheyear2007-08totheshareholdersoferstwhileDalmiaCement(Meghalaya)Limitedpursuanttoaschemeofarrangement

formerger.

` Lakhs

2013-14 2012-13

3. RESERVES AND SURPLUSCapital Reserve

BalanceasperthelastFinancialStatements 741.90 165.06

Add:IPRBenefitreceivedduringtheyear(PYIPRBenefit) - 576.84

Closing Balance 741.90 741.90

Securities Premium Reserve

BalanceasperthelastFinancialStatements 19,600.00 19,600.00

Debenture Redemption Reserve

BalanceasperthelastFinancialStatements 1,526.35 1402.68

Add:TransferfromSurplusbalance - 123.67

Closing Balance 1,526.35 1,526.35

General Reserve


Add:TransferfromSurplusbalance 12,000.00 12,000.00


Surplus/ (Deficit)


ProfitfortheyearasperthestatementofProfitandLoss 9,787.63 15,638.59

Less:Appropriations

ProposedDividend(Pershare`4/-(PreviousYear`.1.5/-)) 2,276.01 853.50

Dividenddistributiontaxonproposeddividend 386.81 145.05

InterimDividend(PreviousYear`2.5/-) - 1,422.51

Dividenddistributiontaxoninterimdividend - 230.77

TransfertoDebentureRedemptionReserve - 123.67

TransfertoGeneralReserve 12,000.00 12,000.00

TotalAppropriations 14,662.82 14,775.50


Total 1,09,852.93 102,728.12

44


` Lakhs Non Current Current

2013-14 2012-13 2013-14 2012-134. LONG TERM BORROWINGS

Securedi) Redeemable Non-Convertible Debentures

[email protected]% 1,100.00 - [email protected]%(Redeemable

during2014-15to2016-17)

4,800.00 6,000.00 1,200.00 -

4,800.00 7,100.00 1,200.00 Less:Shownunderothercurrentliabilites - - -1200.00 -

(Refernoteno9) 4,800.00 7,100.00 - -Thedebenturesare securedbywayoffirstparipassu chargeoverfixedassets (presentand future)ofCementDivisionof theCompanyexceptthosetoSyndicateBankareadditionalysecuredbywayoffirstpari-passuchargeonFixedAssetsofRefractoryDivisionoftheCompany.

Non Current Current2013-14 2012-13 2013-14 2012-13

ii) Term LoansFrom Banks

StateBankofIndia# (Repayablein32quarterlyinstallmentsfromDec,10)

3,291.49 4,255.49 964.00 964.00

StateBankofIndia# (Repayablein24quarterlyinstallmentsfromDec,12)

4,973.07 6,393.08 1,420.00 1,420.00

StateBankofIndia# (Repayablein31quarterlyinstallmentsfromJune,15)

5,000.00 1,300.00 - -

ExportImportBankofIndia# (Repayablein27quarterlyinstallmentsfromJune,10)

1,191.30 1,872.04 680.74 680.74

ExportImportBankofIndia(ForeignCurrencyLoan)# (Repayablein27quarterlyinstallmentsfromJune,10)

1,670.98 2,382.29 954.84 866.29

AxisBankLimited# (Repayablein20quarterlyinstallmentsfromMar,10)

1,500.00 1500.00 2,000.00

UnitedBankofIndia$ (Repayablein24quarterlyinstallmentsfromApr,11)

1,664.80 2,500.04 ,833.32 833.98

UnitedBankofIndia$ (Repayablein32quarterlyinstallmentsfromApr,11)

4,846.65 6,062.45 909.39 1,212.52

UnitedBankofIndia$ (Repayablein26quarterlyinstallmentsfromSept,15)

4,528.84 - - -

AxisBankLimtied# (Repayablein30quarterlyinstallmentsfromSept,15)

2,500.00 - - -

From OthersInternationalFinanceCorporation@ (Repayablein13halfyearlyinstallmentsfromOct,10)

6,313.86 9,470.78 3,156.92 3,156.92

InternationalFinanceCorporation# (Repayablein14halfyearlyinstallmentsfromJune,16)

12,098.00 - - -

48,078.99 35,736.17 10,419.21 11,134.45Less:Shownunderothercurrentliabilites - - (10,419.21) (11,134.45)

(Refernoteno9) 48,078.99 35,736.17 - -#SecuredbyFirstparipassuchargebywayofmortgageandhypothecationoverallimmovablepropertiesandmoveablefixedassetsofCementDivision,(bothpresentandfuture)andfurthersecuredbysecondparipasuchargeonallcurrentassetsoftheCompany.

$SecuredbyFirstchargeonfixedassetsoftheCementDivisionofCompany,bothpresentandfuturetobesharedparipassuwiththeprovidersoftheotherdebtandexistinglenders,furthersecuredbywayofsecondparipasuchargeoncurrentassetsofCementDivision.

@Securedby First rankingmortgage andHypothecationon all immovable&movable, present& future assets related to theCementDivision(excludingCurrentAssets)tobesharedparipassuwithotherlendersinrespectofotherdebtsandexistingsecuredlenderstotheCementDivisioninrespectoftheexistingdebt.

45


`Lakhs Non Current # Current

2013-14 2012-13 2013-14 2012-13UnsecuredPublicDeposits

-RelatedParties(Refernoteno28.10(b1f)) - - - 15.00-Others 688.66 422.97 114.84 421.22

688.66 422.97 114.84 436.22Less:Shownunderothercurrentliabilites(Refernoteno9) - - (114.84) (436.22)#(Repayablein2014-15&2015-16) 688.66 422.97 - -Grand Total 53,567.65 43,259.14 11,734.05 11,570.67Less:ShownunderothercurrentLiabilities - - (11,734.05) (11,570.67)

53,567.65 43,259.14 - -

2013-14 2012-135. DEFERRED TAX LIABILITIES (NET)

Liabilities:Depreciation 15,442.01 14,173.06

Assets:DifferenceofvalueofStocku/s145AoftheIncomeTaxAct,1961 322.59 342.73Expensesallowableincomputingtaxableincomeonpaymentbasis 591.62 250.00Exchangelossonloanforcapitalexpenditure 288.73 219.79UnabsorbeddepreciationunderIncomeTaxAct,1961ProvisionforDoubtfulDebts&obsolescence 598.03 408.30

1,800.97 1220.82NetLiability 13,641.04 12,952.24

6. OTHER LONG TERM LIABILITIESTradePayables(Duetomicro&smallenterprises-Nil(PY-Nil)) 3,225.44 3,160.25Accruedinterestonpublicdeposits 54.62 19.74

3,280.06 3,179.99

7. SHORT TERMS BORROWINGSSecuredLoansrepayableondemand

CashCreditsfromBanks* 7,547.79 13,040.49OtherLoansandadvances

Buyer'sCreditfromBanks$ - 11,175.46UnsecuredPublicDeposits

-RelatedParties 26.75 --OtherthanRelatedParties 676.58 428.43

8,251.12 24,644.38*Workingcapitalfacilities(fundbased&nonfundbasedlimits)aresecuredbyfirstparipassuchargeoverstocks,stores,rawmaterials,inventories,workinprogress,finishedgoodsandalsobookdebts,billsandmoneysreceivableoftheCompanybywayofhypothecation.ThesefacilitiesarefurthersecuredbysecondchargeoverthefixedassetsoftheCementDivisionoftheCompany.$Buyerscreditissecuredbysubservientchargesonmoveablefixedassetsofcementdivisionofthecompany.

8. TRADE PAYABLESMicro&SmallEnterprises 28.64 94.88Others 21,250.51 16,002.45

21,279.15 16,097.33

46


DisclosureasperSection22of“TheMicro,SmallandMediumEnterprisesDevelopmentAct2006”:`Lakhs

Particulars As at 31st March,

2014

As at 31stMarch,

2013 (i) theprincipalamountandtheinterestduethereonremainingunpaidtoanysupplier

-PrincipalAmount - -Interestthereon -

(ii) theamountofinterestpaidbythebuyerintermsofSection16,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointedday

- -0.20

(iii) theamountofinterestdueandpayablefortheperiod(wheretheprincipalhasbeenpaidbutinterestundertheMSMEDAct,2006notpaid) 0.01

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

whentheinterestduesasaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceasadeductibleexpenditureundersection23oftheMSMEDAct,2006.

0.06

2013-14 2012-139. OTHER CURRENT LIABILITIES

Currentmaturitiesoflong-termdebts(Refernoteno4) 11,734.05 11,570.67Interestaccruedbutnotdueonborrowings 900.24 1,048.17Unpaiddividends# 96.54 97.99Unpaidmatureddepositsandinterestaccruedthereon# 14.51 18.78On Capital Account 3,951.22 3,376.43SecurityDeposits 10,951.87 8,193.22Advancepaymentsfromcustomers 3,813.33 3,379.69Otherpayables -

-Statutorydues 3,233.03 2,112.09-Directorscommission 37.40 37.40-Recoveriesfromemployeesonbehalfofothers 57.46 53.59

34,789.65 29,888.03#Therearenoamountdue&outstandingtobecreditedtotheInvestorEducation&ProtectionFund

10. SHORT TERM PROVISIONSEmployeebenefits

Leaveencashment(unfunded) 414.77 328.18 Superannuation(funded) 18.66 18.86

OthersExchangefluctuation-forwardcontracts 8.20 1.44 Proposeddividend 2,276.01 853.50 Taxonproposeddividend 386.81 145.05

3,104.45 1,347.03

47


11. FIXED ASSETS`Lakhs

GrossBlock Depreciation/Amortization NetBlockFixedAssets As at

01.04.2013Additions Disposals/

AdjustmentsAs at

31.03.2014Up to

31.03.2013Fortheyear On disposals Up to

31.03.2014As at

31.03.2014As at

31.03.2013a Tangible Assets

Land 621.81 31.93 - 653.74 - - - - 653.74 621.81Landunderlease 1,792.26 125.45 - 1,917.71 43.11 20.91 - 64.02 1,853.69 1,749.15Buildings 10,081.86 2,254.86 23.95 12,312.77 3,862.35 467.82 18 4,311.73 8,001.04 6,219.51PlantandEquipment 1,74,098.37 29,887.81 77.57 2,03,908.61 83,665.19 12,893.92 73.40 96,485.71 107,422.90 90,433.18Plant&Equipmentunder lease 574.06 - - 574.06 417.37 27.27 - 444.64 129.42 156.69

FurnitureandFixtures 531.51 168.03 1.21 698.33 288.71 75.09 1.21 362.59 335.74 242.80Vehicles 5,039.82 124.13 16.89 5,147.06 3,049.57 611.91 14.82 3,646.66 1,500.40 1,990.25Officeequipments 1,965.91 343.47 29.50 2,279.88 1,261.55 286.00 28.24 1,519.31 760.57 704.36RailwayLine 4,597.86 0.00 - 4,597.86 2,054.65 353.76 - 2,408.41 2,189.45 2,543.21LiveStock 11.66 0.43 3.42 8.67 - - - - 8.67 11.66Total 1,99,315.12 32,936.11 152.54 2,32,098.69 94,642.50 14,736.68 136.11 1,09,243.07 1,22,855.62 1,04,672.62

b Intangible AssetsComputersoftware 706.24 212.05 - 918.29 250.31 162.15 - 412.46 505.83 455.93Total 706.24 212.05 - 918.29 250.31 162.15 - 412.46 505.83 455.93Total a & b 2,00,021.36 33,148.16 152.54 2,33,016.98 94,892.81 14,898.83 136.11 1,09,655.53 1,23,361.45 1,05,128.55PreviousYear 1,85,282.49 15,004.11 265.24 2,00,021.36 78,925.27 16,209.13 241.59 94,892.81 1,05,128.55 1,06,357.22

c Capital Work In Progress

15,883.12 13,639.46

Total - - - - - - - - 15,883.12 13,639.46d Intangible assets under

Development31.06

Total - - - - - - - - - 31.06

Notes1. GrossBlockincludesamountaddedin1985onrevaluationofLand`132.31 lakhs,Buildings`1,200.64 lakhs andPlantandMachinery`1,917.55 lakhs as carried

outbyanexternalindependentvaluer.Sincethevaluationwascarriedoutlongbacktheindicesappliedbythevaluerisnotavaliable.2. AdditionstoFixedAssetsandCapitalwork-in-progressincludenetborrowingcostof`1,314.36 lakhs capitalisedduringtheyear(PreviousYear`28.22 lakhs).3. AdditiontoCapitalWIPincludesPreoperativeexpenses/incomeasdetailedunderNote28.19.4. Therehasbeennoimpairmentlossonassetsduringtheyear.5. Depreciationof`84.72 Lakhs forMedinipurunithasbeenchargedtoPreoperativeexpenses.

Face Value No.ofShares/Units Amount(In`Lakhs)2013-14 2012-13 2013-14 2012-13

12 NON CURRENT INVESTMENTSTRADE - Unquoted - At CostEquity Instruments - Fully paid upSubsidiary(w.e.f01.01.2013)

OCLGlobalLtd(FaceValueinUSD) 1 1,00,000 100,000 4,145.18 4,145.18OdishaCementLimited 10 50,000 5.00

Joint VentureRadhikapur(West)CoalMiningPvtLtd(Note28.7) 10 73,48,000 73,48,000 734.80 734.80

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

Preference Shares - Fully paid upSubsidiary(w.e.f01.01.2013)

OCLGlobalLtd(FaceValueinUSD)* (5%non-cumulativeredeemable)

1 27,30,000 27,30,000 1,330.42 1,330.42

Total (A) 6,215.41 6,210.41*Redeemableattheoptionofthecompanyintranchesofthecompany'schoicebutnotlaterthan10yearsfromthedateofissue.

48


Face Value No.ofShares/Units Amount(In`Lakhs)2013-14 2012-13 2013-14 2012-13

NON TRADE - UNqUOTED (Unless Otherwise Stated)At CostEquity Instruments - Fully paid upOthers

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

Debentures or BondsNon-convertibleSecured-Fullypaidup

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

8%-IndianChamberofCommerce-

Fractional(`50/-)

25 2 2 - -

Others - Fully Paid upCo-operativeSociety 100 50 50 0.05 0.05 PropertyRightsinHolidayResort 4 4 0.41 0.41

Total (B) 1.98 1.98 Total ( A + B) 6,217.39 6,212.39Quoted InvestmentsUnquotedInvestments 6,217.39 6,212.39

6,217.39 6,212.39Marketvalueofquotedinvestments - -

Note:Costbelow`400/-aregiveninbrackets

49


` Lakhs Non Current Current

2013-14 2012-13 2013-14 2012-1313. LOANS AND ADVANCES

Capital Advances Secured-consideredgood 474.60 2,161.41 - -Unsecured-consideredgood 485.96 1,509.65 - -Unsecured-considereddoubtful 6.36 - -Less:Provisionfordoubtfuladvances 6.36 - -Security Deposits Unsecured,consideredgood 27.78 62.35 2,609.21 2,425.18Loans and advances to related partiesUnsecured,consideredgood(Refernoteno28.10b(2d)&(3j)) - - 2.75 23.07 Other loans and advancesSecured,consideredgood

Loantoemployees 15.53 7.59 6.66 2.64 Advancesrecoverableincashorinkind - -

Unsecured,consideredgoodBalanceswithgovt.authorites - - 5,123.61 2,827.21Advanceforallotmentofshares - -Loan/Advancesrecoverableincash/kind 79.02 97.90 3,201.47 3,798.23Loans/advancestoemployees* 30.13 10.11 102.44 57.69 Matcreditentitlement - - 208.02 -Advanceincometax(netofprovisionfortaxation) - - 2,886.67 3,567.96

Unsecured-considereddoubtful - - 27.14 52.86 Less:Provisionfordoubtfuladvances 27.14 52.86

1,113.02 3,849.01 14,140.83 12,701.98Loan due by director or other officers etc

*OtherofficersoftheCompany 43.92 19.10

14. OTHER NON CURRENT ASSETSUnsecured,consideredgood 27.93 27.02 Accrued interest 27.93 27.02

50


Face Value

No.ofShares/Units Amount(In`Lakhs)2013-14 2012-13 2013-14 2012-13

15 CURRENT INVESTMENTSNON TRADE - Unquoted - At Cost or NAV whichever is lowerUnits of Mutual Funds - Fully Paid up

UTITreasuryAdvantageFund-InstPlan(DDP)-Reinvest

6,37,339.68 8,84,476.41 6,388.19 8,846.66

BirlaSunlifeSavingFund-Instl.-DD-Reinvest 71,17,374.71 44,80,144.13 7,147.70 4,484.39BirlaSunlifeDynamicBondFund-RetailPlan-MonthlyDivd-Reivest

-

BirlaSunLifeFixedTermPlanSeriesFCGrowth 19,800,000.00 1,980.00BSLDynamicBondFund-Retail-Growth 9,489,165.05 1,799.99MF-IDFCMoneyManagerFund-TreasuryPlan-DailyDividend

15,917,599.05

1,602.89 -

IDFCMoneyManagerFund-TreasuryPlan-SuperInstPlanC-DD

-

ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend

57,98,148.59 33,74,944.15 6,130.72 3,568.50

ICICIPrudentialInstShorttermPlan-DivdReinvestment Fortnight

38,582.22 6,09,915.66 4.58 75.81

ICICIPrudentialReguShorttermPlan-DivdReinvestment Fortnight

- 14,983.64 - 1.80

ICICIPrudentialFMPSeries63-370Days 20,000,000.00 - 2,000.00ICICI-ShorttermPlan-RegularGrowth 3,887,997.76 - 900.00 ICICIPrudentialIntervalFundQuartelyIntervalPlanI-DirectPlan-Dividend

8,000,000.00 - 800.00 -

ICICIPrudentialIntervalFundIIQuarterlyIntervalPlanB-DirectPlan-Dividend

4,998,250.00 500.00

SBI-SHF-UltraShorttermFund-RegularPlan-DD 1,13,572.54 205,892.44 1,139.05 2,061.57Templeton India Short term income retail plan 35,256.23 35,256.23 800.00 800.00 Total 24,513.13 26,518.72

Net Asset Value 24,631.02 27,069.20

`Lakhs2013-14 2012-13

16. INVENTORIES (REFER NOTE 1.6 FOR MODE OF VALUATION)Raw Materials and components

-InStock 6,132.31 6,411.56-InTransit 55.52 649.22

Work-in-progress-InStock 4,215.81 5,663.68-InTransit 212.08 116.14

Finished goods-InStock 6,403.22 8,583.85-InTransit 601.03 628.43

Stock-in-trade-InStock 51.75 282.01 -InTransit 552.96

Stores,spares,fuel&packingmaterials-InStock 10,053.96 12,688.25-InTransit 3569.69 202.77

LooseTools-InStock 26.31 28.34

Total 31,874.64 35,254.25

51


`Lakhs2013-14 2012-13

17. TRADE RECEIVABLESOutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment

Secured,consideredgood 464.79 116.69Unsecured,consideredgood 1,539.40 1186.19Unsecured,considereddoubtful 1389.01 903.07

3,393.20 2,205.95Less:Provisionfordoubtfuldebts 1389.01 903.07

2004.19 1302.88Others

Secured,consideredgood 6,732.82 4,159.13Unsecured,consideredgood 13,945.38 12,033.02

20,678.20 16,192.15Total 22,682.39 17,495.03

18. CASH & BANK BALANCESCash & Cash EquivalentsBalancewithbanks:

-Incurrentaccounts 6,601.85 5,603.16-Indepositwithoriginalmaturityoflessthan3months 1,700.00 7,500.00-Inunpaiddividendaccount 96.54 97.99

Cheques&draftsonhand - 190.26Funds in transitCash on hand 23.71 21.96Stamps on hand 0.03 0.04Other Bank BalancesDepositsEarmarked(CY-againstPublicDeposits)(PY-againstPublicDeposits&NOC) 133.19 611.17

8,555.32 14,024.58

19. OTHER CURRENT ASSETSInterestaccruedbutnotdue 265.01 188.44Claims&otherreceivable

Considered good 238.92 152.72Considereddoubtful 8.44 7.33

Assetsheldforsale(atlowerofnetbookvalueandnetrealisablevalue) 14.87 11.23Others 16.53 0.32

543.77 360.04Less:Setofffromprovisionfordoubtfuldebts 8.44 7.33

535.33 352.71

52


`Lakhs2013-14 2012-13

20. REVENUE FROM OPERATIONS (REFER NOTE NO 1.7 ON REVENUE RECOGNITION)Sale of Products

Cement 1,73,776.58 1,68,374.37Refractories 28,892.51 27,219.22Power 216.57 -Others-Clinker 2,456.68 1,009.48Others-Dolomite 63.50 73.74

Self Consumption of ProductsCement 452.30 381.89Refractories 1080.71 958.34

Sale of Traded ProductsSlag,Coal&Gypsum 5.54 3,509.38Refractories 3,567.72 4,466.67

Sale of ServicesMarketingServices 801.05 450.94BusinessAuxiliaryServices 9.07 15.40

Other Operating Revenue 697.40 845.592,12,019.63 2,07,305.02

Less: Excise Duty 26,468.04 25,576.131,85,551.59 1,81,728.89

21. OTHER INCOMEInterestReceipts-Ondeposits,taxrefundsandfromcustomersetc. 579.62 266.63Profitonsaleofassets 0.71 -MTMgainoninterestderivative - -Dividendsfrominvestmentsinmutualfunds-current 871.80 1,283.33Profitonsaleoflongterminvestment 681.20Profitonsaleofcurrentinvestments 19.55 1.58OtherNonOperatingIncome 1,502.51 979.86

3,655.39 2,531.40

22. COST OF MATERIALS CONSUMEDi) Limestone(OwnQuarry)-Seefootnote(b)below 11,090.33 9,744.14ii) Slag 15,212.52 15,568.79iii) PurchasedClinker - 2,686.44iv) Others# 14,869.40 16,687.14

41,172.25 44,686.51

53


`Lakhs2013-14 2012-13

Note:a) # None of these individually account for more than 10% of the total cost of material

consumedb) Expenses included in the cost of raw materials

SalariesandWages 602.90 504.57ContributiontoProvidentandOtherFunds 64.66 61.43WorkmenandStaffWelfareExpenses 42.02 54.84PaymenttoContractorsforServices 1,588.39 1,809.42PowerandFuel 854.70 1,085.64ConsumptionofStoresandSpareParts 3,115.50 1,720.59RepairstoMachinery 1,750.15 1,510.11RepairstoBuildings 4.17 19.06RoyaltyandCess 1,691.29 1,828.00Rent 1.46 4.91RatesandTaxes 119.02 79.33Insurance 32.79 24.51Commission to Other Agents - Depreciation 2,173.39 2,314.00SundrySales/Income (47.56) (36.08)

11,992.88 10,980.33

23. PURCHASE OF GOODS TRADEDSlag,Coal&Gypsum 5.76 3,454.03Refractories 3,826.96 4,280.63

3,832.72 7,734.66

24. CHANGES IN INVENTORIES OF FINISHED GOODS , WORK IN PROGESS & STOCK IN TRADEStocksatthebeginningoftheyear

Finished Goods 9,212.28 3,269.92Traded Goods 282.01 380.24WorkinProgress 5,779.82 1,252.78

15,274.11 4,902.94Less:Stocksattheendoftheyear(Seefootnotebelow)

Finished Goods 7,004.25 9,212.28Traded Goods 604.71 282.01WorkinProgress 4,427.89 5,779.82

12,036.85 15,274.11 3,237.26 (10,371.17)

FootNote:-Stock in Tradea) Finsihed Goods

Cement 2,840.62 4,718.77Refractories 4,163.63 4,493.51

7,004.25 9,212.28b) Traded Goods

Refractories 604.71 282.01

c) WorkinProgressCement 3,257.06 4,567.11Refractories 1,170.83 1,212.71

4,427.89 5,779.82

54


`Lakhs2013-14 2012-13

25. EMPLOYEE BENEFITS EXPENSE(Refernote1.8onemployeebenefits)Salaries,Wages,BonusandGratuity 9,427.59 8,036.33ContributiontoProvidentandOtherFunds 892.47 864.23ContributiontoProvidentandOtherFunds-Contractorsemployees 309.30 262.57WorkmenandStaffWelfareExpenses 466.52 496.08

11,095.88 9,659.21

2013-14 2012-1326. FINANCE COSTS

InterestexpenseOnTermLoans,DebenturesandDeposits 5,633.40 7,044.39ToBanksandOthers 931.47 251.92

OtherBorrowingCost 95.31 246.39Applicablenetgain/lossonforeigncurrencytransactionsandtranslation 147.20 161.40

6,807.38 7,704.10

2013-14 2012-1327. OTHER EXPENSES

ConsumptionofStores,SparepartsandPackingmaterials 9,954.44 9,074.10Repairs and Maintenance

Machinery 5,691.85 5,798.88Buildings 530.83 632.21 Others 140.38 150.56

PaymentstoContractorsforServices 4,540.35 4,245.27RoyaltyandCess 15.78 14.54 Rent 954.11 676.56 RatesandTaxes 1,926.74 940.80 ExcisedutyonStockandOthers (409.95) 1,098.00Freight,TransportationandHandling 26,966.41 20,447.33Commission to Selling Agents 751.78 583.92 Rebates,DiscountsandAllowances 444.98 366.64 Insurance 323.61 274.78 Travelling 671.59 509.18 AdvertisementandPublicity 1,671.85 1,929.48Legal 157.12 238.25 Directors'TravellingandConveyance 16.66 15.18 Directors'Fees 9.90 10.30 CommssiontoNonExecutiveDirectors 41.55 41.55 CommssiontoExecutivevicechairman&ManagingDirector 100.00 -CharityandDonations 556.96 487.70 LossonsaleofCurrentInvestments 42.70 -AssetsWrittenoffandLossonSaleofAssets 2.50 10.89 LossduetoExchangefluctuationotherthanfinancecost(Net) 795.91 92.60 ProvisionforDoubtfulDebts 474.81 191.01 BadDebtsWrittenOff 0.50 -ProvisionforObsolesenceinInventory 26.17 PaymentstoOutsideAgencies 3,903.53 2,655.35MiscellaneousExpenses 4,868.00 3,493.74

65,171.06 53,978.82

55


`Lakhs2013-14 2012-13

28. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS28.1 Contingent liabilities not provided for in respect of :

(i) ClaimsagainsttheCompanynotacknowledgedasdebts(a) Disputed liability relating to ESI Contribution on over time wages and other

allowances57.95 55.95

(b) DisputedliabilityrelatingtoPFContributiononcertainallowances 71.22 71.22(c) Disputed liability relating topaymentof premiumon forest landused forMining

purpose154.13 154.13

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

penal charges197.49 175.91

(g) DisputedSalesTaxdemand(includinginterest&penalty)-matterunderappeal 665.57 629.00(h) DisputedEntryTaxdemand-matterunderappeal 293.28 149.66(i) DisputedExcisematters 3,756.38 4,265.49(j) DisputedliabilitiesrelatingtopurchaseofElectricity 302.16 358.92 (k) DisputedliabilitiesforLanjibernaMinesforpaymentofStampDuty 8,349.76 -(l) Others 222.15 363.04

14,235.26 6,388.48(ii) OthermoniesforwhichtheCompanyiscontingentlyliable:

(a) Disputedliabilityrelatingtolabourmatters-pendinginCourts 4.57 4.57(b) DisputedliabilityrelatingtoLandmatters-pendinginCourts 39.51 39.51(c) Others 78.50 78.50Total 122.58 122.58

(iii) DisputedliabilityinrespectofIncomeTaxdemands 213.03 302.88

In respect of items above, future cash outflows in respect of contingent liabilities aredeterminable only on receipt of judgements / decisions pending at various forums /authorities.

(iv) a) Securityprovidedtobankinrespectof loangranteduptoUSD3.50mn.(USD8.39Lakhs)(PYUSD12.56Lakhs)toOCLGlobalLimited,aSubsidiary,(w.e.f01.01.2013)-firstparipassuchargeoncurrentassetsofthecompanyandfurthersecuredbysecondparipassuchargeonfixedassets,ofcementdivisionofthecompany,loanoutstandingamountasonthebalancesheetdate

498.21 689.13

b) GuaranteegiventoBanksonbehalfofOCLChinaLtd(USD29.48Lakhs) (PYUSD11.84Lakhs)(astepdownSubsidiaryw.e.f01.01.2013)

1,749.75 649.84

c) GuaranteegiventoBanksonbehalfofRadhikapur(West)CoalMiningPrivateLimitedagainstwhichcounterguaranteeof`332.00Lakhs(PY561Lakhs)hasbeenreceivedfromOCLIron&SteelLtd

636.00 1,076.00

28.2 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for

5,865.96 15,644.97

28.3 Remuneration to Auditors and ExpensesAuditors

Audit Fee 16.00 13.00TaxAuditFee 4.00 2.50

InOtherCapacitiesTaxationmatters 0.75 -CertificationofQuarterlyLimitedReview 6.00 4.20CertificationofotherStatements(incl.`2.50LakhforConsolidatedFSofPY) 7.10 2.85ExpensesincludingboardingandLodging 13.00 8.65

Cost AuditorAudit Fee 0.70 0.70ExpensesincludingboardingandLodging 0.21 0.50

56


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

28.4 IntheopinionoftheBoardandtothebestoftheirknowledgeandbelief,thevaluationonrealisationofcurrentassets,loansand

advancesintheordinarycourseofbusinesswouldnotbelessthantheamountatwhichtheyarestatedintheBalanceSheet.

28.5 TheSupremeCourtofIndiainApril,1996,upheldthevalidityofJutePackingMaterials(CompulsoryuseinPackingCommodities)Act,

1987.TheCompanyhasbeenlegallyadvisedthattheActisapplicabletoitonlywitheffectfromOctober,1996.UndertheAct,Cement

ManufacturersarerequiredtouseJutePackagingMaterialforsupplyordistributionupto50%oftheirtotalproduction.TheCalcutta

HighCourthasgrantedstayagainstshowcausenoticereceivedbytheCompanyfromtheJuteCommissioner.TheTransferPetitionfiled

bytheUnionofIndiabeforetheHon’bleSupremeCourtwasdismissedbytheHon’blecourtduetodefaultandasaresultofwhich

thependingwritoftheCompanywillbeheardbytheHon’bleKolkataHighCourtonmerits.Theamountthatmaybecomepayable,is

presentlynotascertainable.However,theGovernmenthasnotnotifiedthecompulsorypackingofCementinjutepackingmaterials

fortheperiodeffectivefrom1stJuly,1997.

28.6 Duringtheyearanamountof`115.00lakhs(PY25.00lakhs)hasbeendonatedto“RashtriyaAhinsaManch”aregisteredPolitical

partyunder section29AofRepresentationof thePeopleAct,1951having its registeredofficeat132/1,MahatmaGandhiRoad,

Kolkata-700007.

28.7 InrespectoflicencegrantedforcaptiveminingBlockatRadhikapurmines,aJointVenturecompanyRadhikapur(West)CoalMining

PrivateLimitedhasbeenincorporatedon29thMarch2010inwhichtheCompany’sinterestjointlywithOCLIron&SteelLimited(OISL)

is14.696%.TheCompanyhasinvested`734.80Lacs(PY734.80lakhs)inequitysharesoftheJVCompanywhichincludes`383.35Lacs

(PY`383.35lakhs)beingproportionatevalueofsharestobetransferedtoOISLafterthereceiptofapprovalfromtheMinistryofCoal,

GovtofIndiaandotherJointVenturePartners.

ThedetailsoftheCompany’sinterestinJ.Vareasunder:

`LakhsParticulars As at

March 31, 2014

(Unaudited)

As at March 31,

2013(Unaudited)

EqUITY & LIABILITIESCurrent LiabilitiesShort-termborrowings - -Tradepayables 0.92 0.85 OthercurrentLiabilities 0.02 0.01 Total 0.94 0.86 ASSETSNon-current AssetsTangibleassets 0.22 0.25 Pre-OperativeExpenses 63.02 66.51 Longtermloansandadvances 149.80 149.80 Current assetsCashandbankbalances 130.97 128.72 Short term loans and advances 3.28 2.16 Other current assets 5.11 4.87 Total 352.40 352.31

Thisispre-operatingperiodoftheJointVenturecompany.Alltheexpenditureincurredtillcommencementofcommercialproduction

isclassifiedas‘MinesDevelopment&Pre-OperativeExpenses’pendingcapitalizationunderpre-operativeexpenses.

57



28.8 TheMinistryofCoal,Governmentof Indiavide its letterdt.14.2.2014cancelled theallocationof coalblocks to the jointventure

companyallegingdelay inundertakingproduction.The joint venturecompanyand theCompanyfiledawritpetitionbefore the

Hon’bleDelhiHighCourt,whichhasdirectedtheMinistrytomaintainstatusquotillthenextdateofhearingandnottotakeany

furtherstepstoreallocatethecoalblocksorforcreatinganythirdpartyrightstherein,tilltheirfurtherorders.TheCourthasalsogiven

libertytotheCompanytoapproachit,ifthereisanyactionforencashmentofbankguarantee.TheCompanyhastakenthestandthat

thedelayhasoccurred,mainlyonaccountoftheStateandCentralGovernmentandconsequentlyde-allocationisnotwarranted.

Inthecircumstances,thecompanyisoftheviewthatthesituationdoesnotaffectthecarryingcostoftheinvestmentsanditisnot

requiredtorecognisedecline(ifany)ofitsinvestmentsasonasontheBalancesheetdate.

28.9 Bankbalancesincludes`45,494/-(PY`45,794/-) lyinginacurrentaccountwithanationalisedbank,tobeoperatedjointlybythe

authorisedsignatoriesoftheCompanyandOISLinrespectofCoalBlockOperationsasmentionedinnote28.7above.

`Lakhs Cement Refractory Others Unallocable Total

28.9 Segment Disclosure (AS - 17)Segment operating Revenue

External 1,76,455.37 33,325.08 - 8.77 20,97,89.22(1,72,893.23) (32,210.57) - (15.40) (2,05,119.20)

Inter-Segment 335.79 463.01 - - 7,98.80(4.35) (421.39) - - (425.74)

Segment ResultProfit/(Loss)beforetaxandinterest 22,303.00 1,538.00 - -3,725.26 20,115.74

(31,310.17) (1,881.24) - (-2,843.28) (30,348.13)Less:Interest (6,807.38) (6,807.38)

(7,704.10) (7,704.10)ProfitbeforeTaxation 13,308.36

(22,644.03)ProvisionforTaxation-Current (3,039.95) (3,039.95)

(6,100.00) (6,100.00)Less:MATCreditentitlement -Deferred

208.02 208.02 (688.80) (688.80)(905.44) (905.44)

ProfitafterTaxation 97,87.63(15,638.59)

Other Information Segment Assets 1,85,137.27 29,545.06 34,222.22 2,48,904.56

(1,72,428.74) (26,084.28) (36,721.74) (2,35,234.76)SegmentLiabilities 39,795.23 6,867.75 91,250.13 1,37,913.12

(31,425.04) (5,143.92) (94,799.18) (1,31,368.14)CapitalExpenditureincludingcapitalWIP 34,599.15 736.74 24.87 35,360.76

(13,290.84) (274.60) (251.17) (13,816.61)Depreciation 1,42,45.81 5,79.48 73.54 1,48,98.83

(15,560.07) (606.52) (42.54) (16,209.13)Noncashexpensesotherthandepreciation:ProvisionforLeaveencashment 77.33 (3.06) 12.32 86.59

(14.59) (16.08) (6.52) (37.19)Figuresinbracketsareinrespectofpreviousyear.

Note:

a) As per practice consistently followed, inter segment transfers for capital jobs recognised at cost and for other jobs at estimated

realisablevalue.

b) Businesssegmentisconsideredasprimarysegmentandthereisonlyonegeographicalsegment.

58



28.10RelatedPartyDisclosures(AS-18)

a) Relatedpartiesandtheirrelationship:

1) Keymanagement personnel: ShriM H Dalmia, Shri R H Dalmia, Shri.Gaurav Dalmia(Managing Director), Shri D.D.Atal

(WholetimeDirector)

Relatives:Shri.A.H.Dalmia,Shri.V.H.Dalmia,ShriY.HDalmia,Smt.AbhaDalmia,Smt.PadmaDalmia,Smt.ShripriyaDalmia

Thirani,Smt.AnuradhaJatia,Smt.KanupriyaSomany,Smt.SharmilaDalmia,Shri.PuneetYaduDalmia,Smt.KiranAtal

2) Subsidiary:OCLGlobalLimited,OdishaCementLimited(w.e.f12.07.2013)

3) StepdownSubsidiary:OCLChinaLimited

4) Enterprises overwhich keymanagement personnel are able to exercise significant influence : HariMachines Limited,

DalmiaBharatSevaTrust,DalmiaInstituteofScientific&Research(DISIR),DaltonInternationalLtd,DalmiaCement(Bharat)

Ltd.,LandmarkPropertyDevelopmentCo.Ltd,ShreeNatrajCeramic&Chemical IndustriesLtd,AstirPropertiesPvt.Ltd,

LandmarkLandholdingsPvt.Ltd,DalmiaBharatSugar&IndustriesLtd,DalmiaBharatLtd(FormalyDalmiaBharatEntrprises

Ltd),CalcomCementIndiaLtd,DebikaySystemsLimited,KiranResources(P)Ltd,DalmiaRefractories(Prop:DalmiaBharat

EnterprisesLtd.),DalmiaMagnesiteCorporation(Prop:DalmiaBharatSugar&IndustriesLtd.

b) Transactionswithaboveinordinarycourseofbusiness:

`Lakhs2013-14 2012-13

1) Transactionswithpartiesreferredin(1)above:(a) Remuneration/Pension 839.53 526.89(b) FixedDepositreceived 7.75(c) InterestExpense 1.98 2.41(d) Servicereceived 9.79 7.00(e) RentPaid 58.93 28.04(f) Payableattheyearend 33.90 22.36

2) Transactionswithpartiesreferredin(2)above:(a) Purchaseofgoodsandfixedassets 2,250.25 3,035.17(b) Servicerendered 153.98 196.94(c) GuaranteeProvided(USD8.39Lakhs)(PreviousyearUSD12.56Lakhs) 498.21 689.13(d) Receivableattheyearend 1.82 0 (e) Payableattheyearend 520.37 211

3) Transactionswithpartiesreferredin(4)above:(a) Purchaseofgoods 370.81 161.57(b) Purchaseoffixedassets 60.80 47.51(c) Saleofgoods 3,008.65 2,087.67(d) Servicerendered 108.03 26.93(e) Servicereceived 2,959.72 2,548.76(f) Intercorporatedepositgiven/(receivedback) - (1,000.00)(g) InterestIncome - 38.36(h) Advancegivenandreceived - 4.85(i) RentPaid 13.93 29.64(j) Receivableattheyearend 1,455.27 449.93(k) Payableattheyearend 851.13 2,400.59

59


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

2013-14 2012-13c) DisclosureofMaterialtransactionswithRelatedParties

Remuneration Syt.M.H.Dalmia 22.66 22.37Syt.R.H.Dalmia 278.11 149.63Shri.D.D.Atal 182.52 145.29Shri.Gaurav Dalmia 280.82 152.07Purchase of fixed assetsHariMachinesLtd. 2.41 47.51Purchase of goodsDalmiaCement(Bharat)Ltd. 1.30 11.32DalmiaBharatSugar&IndustriesLtd 33.66 45.97DalmiaBharatLtd 270.93 104.23Sale of goods and fixed assetsCalcomCementIndiaLimited 2,082.10 1,183.55DaltonInternational.Ltd 899.22 812.02HariMachinesLtd. 20.08 61.70Service rendered HariMachinesLtd. 5.76 4.23Service receivedHariMachinesLtd. 7.04 15.38DalmiaCement(Bharat)Ltd. 13.87 36.59DalmiaBharatLtd 2,681.66 2,282.10DISIR 119.70 116.74DaltonInternational.Ltd 111.89 76.17AstirPropertiesPvt.Ltd.(Rent) 13.93 28.04Inter corporate deposit given/(received back)CalcomCementIndiaLimited - (1,000.00)Interest IncomeCalcomCementIndiaLimited - 38.36Receivable at the year endDaltonInternational.Ltd 899.22 -HariMachinesLtd. 12.43 9.73CalcomCementIndiaLimited 542.49 387.81Payable at the year endDaltonInternational.Ltd 49.31 90.83DalmiaBharatLtd 697.82 2,282.10DalmiaCement(Bharat)Ltd. 16.68 17.25

28.11 Earning per share (EPS) AS - 20Profitaftertax(In`Lakhs) 9,787.63 15,638.59WeightedAverageNo.ofequitysharesof`2 each as on 31.03.2014

Basic&Diluted(NoinLakhs) 569.00 569.00EPS(`)

Basic&Diluted 17.20 27.48

60



% 2013-14 ` Lakhs

% 2012-13 ` Lakhs

28.12 Value of imported and indigenousi) RawMaterialsandSparepartsconsumed

Imported 11.87 4,887.43 19.74 8,819.74Others 88.13 36,284.82 80.26 35,866.77

ii) SparepartsImported 27.70 1,377.28 21.70 890.94Others 72.30 3,594.72 78.30 3,215.15

28.13 Imports (C.I.F. Value)i) RawMaterials 7,381.91 17,252.87ii) ComponentsandSpareparts 2,209.07 4,701.14iii) CapitalGoods 6,042.91 149.21

28.14 Expenditure in foreign currency:i) Royaltyandknowhowfees 7.23 2.64ii) InterestonForeignCurrencyLoans 306.13 -iii) Professional/Consultationfee 435.55 145.07iv) Commission 206.55 147.36v) HighSeaPurchase 19.93 51.58vi) OtherMatters 24.45 130.17

28.15 Earnings in Foreign Exchangei) Goodsexported(F.O.B.Value) 5,248.43 3,515.15ii) SaleofgoodsonHighSea 63.79 7.97iii) Service charges 146.13 130.37iv) Sundryreceipts 0.18 0.40v) UKVatrefund - 0.23

28.16 TheCompanyhasnotpaiddividendsinforeigncurrencyduringtheyearinrespectofsharesheldbynon-residents.Theamountpayabletonon-residentshareholdershasbeenpaidtotheirmandateebanks.Theamountofdividendsopaidtononresidentshareholders

duringtheyearisasfollows:

Particulars 2013-14 2012-13Interim

A) No.ofnon-residentshareholders 171 188 197B) No.ofequitysharesheldbythem 27,59,424 27,67,097 27,79,644C) Amountofdividendpaid(In`Lakhs) 41.39 69.17 55.81D) Yeartowhichthedividendrelates 2012-13 2012-13 2011-12

61



`Lakhs2013-14 2012-13

28.17 ForeignCurrencyExposure(AmountInLakhs)i) Hedged -ForwardContractsforimports(USD) USD 8.77 -

Euro 0.19 - TermLoan USD 79.32 23.68ii) NotHedged -Debtors USD 6.84 3.33

Euro 7.02 1.77GBP 10.12

Creditors USD 11.10 8.11 Euro 1.52 1.91JPY 9.01 6.67GBP 0.30 0.30

Cash&BankBalance USD(CYUSD

47.75)

- 0.01

GBP(CYGBP

249.20&PY

330)

- -

Euro(CY

151.66)

- 0.01

RMB 0.03 0.03JPY(PYJPY

220)

0.14 -

Kwacha 0.30 0.30 TermLoan USD 164.09 35.52 PCFCLOAN USD 4.27 5.13

EURO 8.64 3.43GBP 7.85

ForeignCurrencyLoanavailedunderBuyers’Credit USD - 203.63

62


28.18 EmployeeBenefits-AS15(Revised)

a) TheCompanyhasdeterminedtheliabilityforEmployeebenefitsasatMarch31,2014inaccordancewithrevisedAccountingStandard15issuedbyICAI-Employeedefinedbenefits.

b) FollowinginformationarebasedonreportofActuary.

DefinedbenefitplansasatMarch31,2014

`Lakhs2013-14 2012-13

Gratuity (Funded)

Leave Encashment (Unfunded)

Gratuity(Funded)

LeaveEncashment (Unfunded)

A Break-upofexpenses1) Current Service Cost 174.19 246.15 131.03 199.132) Interest cost 119.63 21.05 91.71 18.503) Expectedreturnonplanassets 126.52 - 95.09 -4) NetActuarial(gain)/lossrecongisedduringtheyear 106.52 (19.60) 139.58 (60.83)5) Totalexpense 273.82 247.60 267.23 156.80

B Actual return on plan assets1) Expectedreturnonplanassets 126.52 95.092) Actuarialgain/(loss)onplanassets -22.84 21.28 3) Actual return on plan assets 103.68 116.37

C Reconciliationofobligationandfairvalueofassets1) Presentvalueoftheobligation 1,704.36 414.77 1,488.05 328.182) Fairvalueofplanassets 1,704.52 - 1,488.533) Fundedstatus[surplus/(deficit)] 0.16 (414.77) 0.48 (328.18)

D Change inpresent valueof theobligationduring the yearendedMarch31,20141) PresentvalueofobligationasatApril1,2013 1,488.05 328.18 1,188.28 291.002) Current Service Cost 174.19 246.15 131.03 199.133) Interest cost 119.63 21.05 91.71 18.494) Benefitspaid (161.19) (161.01) (83.83) (119.61)5) Actuarial(gain)/lossonplanassets 83.68 (19.60) 160.86 (60.83)6) PresentvalueofobligationasatMarch31,2014 1,704.36 414.77 1,488.05 328.18

2013-14 2012-13E ChangeinAssetsduringtheyearendedMarch31,2014

1) FairvalueofplanassetsasatApril1,2013 1,488.53 1,188.692) Expectedreturnonplanassets 126.52 95.093) Contributionmade 273.50 267.304) Benefitspaid (161.19) (83.83)5) Actuarialgain/(loss)onplanassets -22.84 21.28 6) FairvalueofplanassetsasatMarch31,2014 1,704.52 1,488.53

F Themajorcategoryofplanassetsasapercentageoftotalplan

Gratuity : 80%(PY76%)investedwithCentralGovt/Stategovt/StateGovt.Securities/PublicsectorbondsFixedDeposit

withPSUBanks

LeaveEncashment : Unfunded


63


`Lakhs2013-14 2012-13

G ActuarialAssumptions1) Discount rate 8.50% 8.00%2) Expectedrateofreturnonplanassets 8.50% 8.00%3) Mortality IALM (2006-08)

ULTIMATE

LIC1994-96

4) Salaryescalation 6.00% 5.00%

c) Gratuityisadministeredbyanapprovedgratuityfundtrust

d) Amountrecognisedasanexpenseinrespectofdefinedbenefitsplanasunder:1) ContributiontoGratuityFund 273.50 267.302) Gratuitypaiddirectly 39.97 21.813) Leaveencashment 247.60 156.79

561.07 445.90e) DefinedContributionplan:

ContributiontoDefinedContributionPlan,recognisedasexpensefortheyearasunder:1) Employer’scontributiontoGovernmentProvidentFund 718.13 612.512) Employer’scontributiontoSuperannuationFund 76.65 60.563) Farewellgifttoretiredemployees 1.28 2.124) Medicalinsurancepremiumtoretiredemployees 16.58 10.77

812.64 685.96

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

Salary&Wages 111.48 199.89Rent 4.47 8.77Rates&Taxes 0.80Insurance 17.21 41.57Finance Charges 183.31 111.82Others 260.28 105.71

28.20 Research&DevelopmentExpenses

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

1) RevenueExpenditurechargedtoProfit&LossAccounti) SalaryandotherBenefits 184.14 159.02ii) RawMaterial&Stores 69.62 24.99iii) Others 39.46 47.58 Total 293.22 231.59

2) CapitalexpenditureshownunderFixedassetsschedule 0.57 0.55Grand Total 293.79 232.14

64


28.21 TheMinistryofCorporateAffairs,GovernmentofIndia,videGeneralCircularNo.2and3dated8thFebruary2011and21stFebruary2011respectivelyhasgrantedageneralexemptionfromcompliancewithsection212oftheCompaniesAct,1956,subjecttofulfillmentofconditionsstipulatedinthecircular.TheCompanyhassatisfiedtheconditionsstipulatedinthecircularandhenceisentitledtotheexemption.NecessaryinformationrelatingtothesubsidiarieshasbeenincludedintheConsolidatedFinancialStatements

28.22 Balanceconfirmationlettersweresentinrespectofaccountsshowingdebitorcreditbalances.BalanceConfirmationshavenotbeenreceived in fewcases. In theopinionof theManagement,adjustments, ifany, requiredonconfirmationandreconciliation isnotexpectedtobematerial.

28.21 Previousyearfigureshavebeenregroupedwherenecessarytocorrespondwithcurrentyearfigures.




65


Independent Auditors’ ReportTotheBoardofDirectorsofOCLIndiaLimited

We have audited the accompanying consolidated financial

statementsofOCLIndiaLimited(“theCompany”)anditssubsidiaries

andJointVenture,whichcompriseconsolidatedBalanceSheetasat

31stMarch2014andtheconsolidatedStatementofProfitandLoss

fortheyearthenended,andasummaryofsignificantaccounting

policiesandotherexplanatoryinformation.

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

Management is responsible for the preparation of these

consolidatedfinancialstatementsthatgiveatrueandfairviewofthe

consolidatedfinancialposition,consolidatedfinancialperformance

and consolidated cash flows of the Company in accordancewith

accountingprinciplesgenerallyacceptedinIndia.Thisresponsibility

includes thedesign, implementationandmaintenanceof internal

control relevant to the preparation and presentation of the

consolidatedfinancialstatementsthatgiveatrueandfairviewand

arefreefrommaterialmisstatement,whetherduetofraudorerror.

AUDITOR’S RESPONSIBILITY

Our responsibility is toexpress anopinionon these consolidated

financialstatementsbasedonouraudit.Weconductedourauditin

accordancewiththeStandardsonAuditingissuedbytheInstitute

ofCharteredAccountantsofIndia.ThoseStandardsrequirethatwe

complywithethicalrequirementsandplanandperformtheaudit

to obtain reasonable assurance about whether the consolidated

financialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidence

about the amounts and disclosures in the consolidated financial

statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material

misstatement of the consolidated financial statements, whether

duetofraudorerror.Inmakingthoseriskassessments,theauditor

considers internal control relevant to the Company’s preparation

and presentation of the consolidated financial statements that

giveatrueandfairviewinordertodesignauditproceduresthat

are appropriate in the circumstances, but not for thepurposeof

expressinganopinionontheeffectivenessoftheentity’s internal

control. An audit also includes evaluating the appropriateness of

accountingpoliciesusedandthereasonablenessoftheaccounting

estimatesmadebymanagement,aswellasevaluatingtheoverall

presentationoftheconsolidatedfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficient

andappropriatetoprovideabasisforourauditopinion.

OPINION

In our opinion and to the best of our information and according

totheexplanationsgiventousandbasedontheconsiderationof

thereportsoftheotherauditorsonthefinancialstatementsofthe

subsidiariesasnotedbelow,theconsolidatedfinancialstatements

giveatrueandfairviewinconformitywiththeaccountingprinciples

generallyacceptedinIndia:

(a) inthecaseoftheconsolidatedBalanceSheet,ofthestateof

affairsoftheCompanyasatMarch31,2014;and

(b) inthecaseoftheconsolidatedStatementofProfitandLoss,of

theprofitfortheyearendedonthatdate;

OTHER MATTER

Wedidnot audit thefinancial statementsof all subsidiaries, and

Joint Venture whose financial statements reflect the total assets

of `17,734.29 lakhs as at March 31, 2014, total revenues of

`22,847.41 lakhs for the year then ended. These financial

statementshavebeenaudited/unauditedbyotherauditorswhose

reports have been furnished to us by theManagement, and our

opinion is based solelyon the reportsof theother auditors.Our

opinionisnotqualifiedinrespectofthismatter.

For V. Sankar Aiyar & Co.

Chartered Accountants

FirmRegistrationNumber:109208W

(R.Raghuraman)

Place:NewDelhi Partner

Dated:13.05.2014 Membershipno.81350

66


Consolidated Balance SheetAsat31stMarch,2014

` Lakhs Note no. 2013-14 2012-13

I. EqUITY & LIABILITIESShareholders' Funds

Share Capital 2 1,138.50 1,138.50Reserves and Surplus 3 1,13,801.54 1,05,729.74

1,14,940.04 1,06,868.24Minority Interest 346.35 325.44 Non Current Liabilities

Long-termborrowings 4 53,916.59 44,612.55Deferredtaxliabilities(Net) 5 13,640.96 12,952.24Otherlongtermliabilities 6 3,280.06 3,242.27Long-termprovisions - -

70,837.61 60,807.06Current Liabilities

Short-termborrowings 7 10,551.28 25,355.02Tradepayables 8 22,323.10 17,306.51Othercurrentliabilities 9 36,260.29 31,234.30Short-termprovisions 10 3,104.45 1,348.56

72,239.12 75,244.39Total 2,58,363.12 2,43,245.13

II. ASSETSNon-current Assets

Fixedassets 11Tangibleassets 1,27,875.12 1,09,490.93Intangibleassets 2,849.72 2,799.90Capitalwork-in-progress 15,883.12 14,183.13Intangibleassetsunderdevelopment 31.06

MineDevelopment&Pre-OperativeExpense 12 63.02 66.51 Non-currentinvestments 13 385.34 385.34 Long-termloansandadvances 14 1,262.81 3,998.81Othernon-currentassets 15 27.93 27.02

1,48,347.06 1,30,982.70Current Assets

Current investments 16 24,513.13 26,518.72Inventories 17 35,054.65 37,390.24Tradereceivables 18 26,446.30 20,672.35Cash&bankbalances 19 9,210.47 14,524.21Short-termloansandadvances 14 14,177.63 12,721.65Other current assets 20 613.88 435.26

1,10,016.06 1,12,262.43Total 2,58,363.12 2,43,245.13


129




67


Consolidated Statement of Profit and Loss For the year ended 31st March 2014

` Lakhs Note no. 2013-14 2012-13

INCOMERevenuefromoperations 21 1,94,353.26 1,84,864.06Other income 22 3,937.97 2,537.70

1,98,291.23 1,87,401.77EXPENDITURE

Costofmaterialsconsumed 23 47,927.86 46,022.28Purchasesofstockintrade 24 2,952.63 8,122.94Freight,clearing&handlingonownclinker 4,076.78 2,658.00Changesininventoriesoffinishedgoods&workinprogress&StockinTrade 25 2,706.48 (9,897.22)Employeebenefitsexpense 26 11,449.86 9,706.61Powerandfuel 28,856.85 31,831.50Finance costs 27 7,106.28 7,767.56Depreciation&amortizationexpense 13,133.01 13,945.03Otherexpenses 28 65,768.93 54,292.92

1,83,978.68 1,64,449.62PROFIT BEFORE TAXATION 14,312.55 22,952.15TaxExpense-CurrentTax 3,077.05 6,100.00

-MatCredit (208.02) --Deferred 688.72 905.44

PROFIT/ (LOSS) FOR THE YEAR AFTER TAX (BEFORE ADJUSTMENT FOR MINORITY INTEREST)

10,754.80 15,946.71

Less: Share of Profit/(Loss) transferred to / (from) Minority Interest 39.38 12.52

PROFIT FOR THE YEAR AFTER (AFTER ADJUSTMENT FOR MINORITY INTEREST) 10,715.42 15,934.19EARNINGPEREQUITYSHARE(FaceValueof`2/-each)1)Basic(`) 18.83 28.00 2)Diluted(`) 18.83 28.00 SignificantAccountingPoliciesOthernotesformingpartofthefinancialstatementsTheaccompanyingnotesformanintegralpartofthefinancialstatements

129




68


Consolidated Cash FlowFortheyearended31stMarch,2014

` Lakhs2013-14 2012-13

A. CASHFLOW FROM OPERATING ACTIVITIESProfitbeforetaxfromcontinuingoperations 14,312.55 22,644.03Adjustmentfor:

Depreciation&AmortizationExpense 15,306.40 16,157.39Loss/(Profit)onsaleoffixedassets 1.79 10.89 EffectofExchangeRatedifference 1,006.53 254.00 ProfitonsaleofInvestment (681.20) (1.58)Interestexpense 6,783.70 7,296.31Interest on Investment (59.36) (70.03)UnrealizedforeignExchangeonconsolidationnet

Gain/Loss

7.10

Dividend on Investment (871.80) (1,283.33) 21,493.16 22,363.65

Operatingprofitbeforeworkingcapitalchanges 35,805.71 45,007.68AdjustmentsforWorkingCapitalchanges

Increase/(decrease)intradepayables 5,016.59 5,055.04Increase/(decrease)inshorttermprovisions 91.62 39.65 Increase/(decrease)inothercurrentliabilities 4,836.58 4,947.40Increase/(decrease)inotherlongtermliabilities 37.79 1,196.66Decrease/(increase)intradereceivables (5,773.95) (5,426.25)Decrease/(increase)ininventories 2,335.59 (9,229.08)Decrease/(increase)inlongtermloansandadvances 19.14 (63.76)Decrease/(increase)inshorttermloansandadvances (1,931.44) (1,623.75)Decrease/(increase)inothercurrentassets (178.62) 321.59 Decrease/(increase)inothernoncurrentassets (0.91) 18.97

4,452.40 (4,763.53)CashgeneratedfromOperations 40,258.11 40,244.15

TaxPaid(Net) (2,393.57) (6,688.07)NetCashfromOperatingActivities 37,864.54 33,556.08

B. CASH FLOW FROM INVESTING ACTIVITIESPurchaseofFixedAssets (32,809.22) (17,143.19)Sale/writeoffofFixedAssets 112.06 64.50 Interest receipt on investment 59.36 70.03 ProfitonsaleofInvestment 681.20 1.58 PurchaseofnoncurrentInvestment(Net) (4,865.69)PurchaseofcurrentInvestment(Net) 2,005.59 (9,795.92)Loansgiven - -Loansgivenreceivedback - 1,000.00Dividend on Investments 871.80 1,283.33NetCashgenerated/(-)usedinInvestingActivities (29,079.21) (29,385.36)

69


Consolidated Cash FlowFortheyearended31stMarch,2014

` Lakhs2013-14 2012-13

C. CASHFLOW FROM FINANCING ACTIVITIESIncrease/(decrease)inlongtermborrowings 9,493.45 (10,165.92)Increase/(decrease)inshorttermborrowings (14,803.74) 16,687.44EffectofExchangeRatedifference (1,006.53) (254.00)IPRBenefitReceived - 576.84 DividendPaid (853.50) (1,138.01)TaxesonDividendPaid (145.05) (184.61)Interim Dividend paid - (1,422.51)Taxoninterimdividendpaid - (230.77)Interestexpense (6,783.70) (7,296.31)NetCashfromFinancingActivities (14,099.07) (3,427.85)NetchangesinCashandbankbalances (5,313.74) 742.87 NetIncrease/(-)DecreaseinCashandBankbalances

Balanceattheendoftheyear 9,210.47 14,024.58(Referfootnoteinnoteno19)Balanceatthebeginningoftheyear 14,524.21 13,281.71

(5,313.74) 742.87




70


Notes to the Consolidated Financial StatementsFortheyearended31stMarch,2014

1 SIGNIFICANT ACCOUNTING POLICIES

1.1 Principles of Consolidation

The Consolidated Financial Statement relate to OCL IndiaLimited(thecompany)anditssubsidiarycompaniesandjointventure. The consolidated financial statements have beenpreparedonthefollowingbasis:

i) The Consolidated Financial Statements have beenpreparedincompliancewiththeAccountingStandard21- “Consolidated Financial Statements”, and ‘AccountingStandard27 - “Financial Reportingof Interests in JointVentures” notified under Companies (AccountingStandard)Rules,2006.Thesefinancialstatementsrelateto OCL India Limited and its subsidiary companies (2)incorporated in foreign countries andone in India&aJoint Venture in India. The Companies considered forconsolidatedfinancialstatementsare:-

a) OCLGLOBALLIMITED(IncorporatedinMauritius)

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

c) OdishaCementLtd.(IncorporatedinIndia)

d) Radhikapur (West) Coal Mining Pvt Limited -Interests (14.696%) out of which only 7.029%is permanent in nature which is considered in consolidatedfinancialstatementsandforbalanceshare (7.667%)of investment isaccountedasperAS-13“AccountingforInvestments”

ii) The financial statements of the Company and itssubsidiary companies are combined on a line-by-line basis by adding together the book values of likeitems of assets, liabilities, income and expenses, aftereliminating all significant intra-group balances andintra-group transactions and also unrealized profits orlossesinaccordancewithAccountingStandard(AS)21-“ConsolidatedFinancialStatements”

iii) Interest in Joint Ventures have been accounted byusing the proportionate consolidation method as perAccountingStandard27-“FinancialReportingofInterestin Joint Ventures”. Intra-group balances, transactionsandunrealizedprofitsorlosseshavebeeneliminatedtotheextentoftheCompany’sproportionateshare.

iv) Thedifferencebetweenthecosttothecompanyof itsinvestment in the subsidiaries and Joint Venture,overitsproportionateshareinthenetassetsoftheinvestee

company as at the date of acquisition of shares isrecognised in the financial statements as Goodwill orCapitalReserveasthecasemaybe.

v) Minority Interest’s share of net profit of consolidatedsubsidiaries for the year has been identified andadjusted against the income of the group in order toarriveatthenetincomeattributabletoshareholdersoftheCompany.MinorityInterest’sshareofnetassetsofconsolidatedsubsidiaries is identifiedandpresented intheconsolidatedbalancesheetseparatefromliabilitiesandtheequityoftheCompany’sshareholders.

vi) Asfaraspossible,theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpolicies for liketransactions and other events in similar circumstancesandarepresentedinthesamemannerastheCompany’sstandalone financial statements. Differences inacccountingpolicieshavebeendisclosedseperately.

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

viii) Thefinancial statementsof thegroupentitiesused forthepurposeofconsolidationaredrawnuptothesamereportingdateasthatofthecompanyi.e. Year endedMarch31,2014.

1.2 Fixed Assets including intangible Assets

Fixedassetsarestatedatcostlessaccumulateddepreciation.Costcomprisesthepurchasepriceandanyattributablecostofbringingthe asset to its working condition for its intended use. Land,Buildings,PlantandMachineryrelatingtoCementandRefractoryWorks acquired/installed upto 31.12.81 were revalued as at31.12.85.Allotherfixedassetsareshownatcost(netofcenvat).Borrowingcostsattributabletotheacquisitionofqualifyingassetsandallsignificantcostsincidentaltotheacquisitionofassetsarecapitalised.Intangibleassetsarerecordedatconsiderationpaidforacquisitionofsuchassetsandarecarriedatcostlessaccumulatedamortisation.CapitalWork inProgress&IntangilbeAssetsunderdevelopment are shown at cost.

1.3 Depreciation and Amortisation

i) Depreciation on Fixed Assets ( except to the extentstated in para ( ii ) to ( iii ) below ) is provided using

71


theReducingBalanceMethodandhasbeencalculatedinthemannerandattheratesspecifiedinScheduleXIVtotheCompaniesAct,1956.

ii) DepreciationonPlantandMachineryaddedinCement&Refractoryafter31.12.81 isprovidedonstraight linemethod and depreciation on all other assets includingKapilasCementWorks,ClinkerisationUnitatRajgangpur(Line-II),CaptivePowerPlantandBengalCementWorksisprovidedonreducingbalancemethod.

iii) Inrespectofastepdownsubsidiarycompany(OCLChinaLimited),depreciationisprovidedonstraightlinemethodaspertheexpectedusefullivesandexpected‘netsalvagevalue (original valueor5%ofBookValue)of theassetsestimatedbythemanagement,whichareasfollows:

Name of the Assets

Depre-ciation

Life

Residual Rate

Annual Depreciation

Rate estimated by

the management

Rates as per

Schedule XIV to the

Companies Act, 1956

HouseandBuilding

20 5% 4.75% 1.63%-3.34%

Machineryand Mechanic Equipment

10 5% 9% 5.28%

MeansofTransportation

4 5% 23.75% 9.75%

Electronic Equipment

3 5% 31.67% 4.75%-5.28%

iv) Anintangibleassetsismeasuredatcostandamortisedsoastoreflectthepatterninwhichtheassetseconomicbenefitareconsumed.Theusefullifehasbeenestimatedas3-5yearsincaseofcomputersoftware.

v) InrespectofStepdownsubsidiarycompany(OCLChinaLimited) the expected life of the intangibles has beenestimatedbythemanagementastenyears.

1.4 Revenue Recognition and Accounting for Sales & Services

Revenue from domestic sale of goods is recognised whensignificantrisksandrewardsaretransferredtothecustomers.Export Sales are accounted for on the basis of date of Billof Lading. Sales are net of trade discount and sales tax butinclusiveofexciseduty.Bonusorpenaltylinkedtooperatingefficiency of products, where applicable, is accounted foruponcrystalization. Income fromservicesareaccounted forwhen becomes due. Interest income is recognised on time

proportionatebasis.Dividendincomeisaccountedfor,whentherighttoreceivethesameisestablished.

IncaseofStepdownSubsidiaryCompany(OCLChinaLimited)incomefromservicesisrecognisedintheaccountingperiodinwhich it is received.

1.5 Pre-Operative Expenses (Mine Development Expenses & Other Pre-Operative Expenses.)

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

i) MineDevelopmentExpenses–Direct:Thecostrelatabletoacquisitionofexploration rightandBankGuaranteeexpensesforGovernmentroyaltyassurancearegroupedunder this head.

ii) Mine Development Expenses –Direct – InterestReceipts:TheCompanywascalleduponbytheBankertomakemarginmoneyintheformofFixedDepositforissueofBankGuaranteeonbehalf of theCompany toGovernmentofIndiaforassuranceofroyaltypaymentofoneyearproductionuponcommencementofoperation.Theinterestreceiptonsuchfixeddepositisconsideredasreductionfromcostofbankguaranteecharges,underminesdevelopmentexpenses–direct.

iii) Mine Development Expenses –Indirect andAdministrative: The expenses are capitalized as theoperations are yet to commence. The interest receipton deposit out of spare funds is reduced from theadministrativeexpenses.

iv) Thecompanyisfollowing“FullCostmethod”,wherebyallacquisition,explorationanddevelopmental costarekept aswork inprogress.Upon start of operation, thedepletion/depreciationmethod/modewillbedecided,basedonreservequantityofcoalandotherfactors.

1.6 Other significant accounting policies

Theseare setoutunder “SignificantAccountingPolicies” asgiveninthecompany’sseparatefinancialstatements.

72


` Lakhs2013-14 2012-13

2. SHARE CAPITALAuthorised Shares

1,00,000Sharesof`100 each 100.00 100.00 7,00,00,000Sharesof`2 each 1,400.00 1,400.00

1,500.00 1,500.00Issued Shares

6,36,31,805OrdinarySharesof`2 each 1,272.64 1,272.64Subscribed & paid up shares

5,69,00,220OrdinarySharesof`2each,fullypaidup 1,138.00 1,138.00Add:SharesForfeitedAccount 0.50 0.50 Total Subscribed & Paid up Share Capital 1,138.50 1,138.50

a) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

Particulars 31st March 2014 31st March 2013 No of Shares

(in lakhs)

(in lakhs `) NoofShares

(inlakhs)

(inlakhs`)

OrdinarySharesoutstandingatthebeginningoftheyear 569.00 1,138.00 569.00 1,138.00OrdinarySharesissuedduringtheyear - - - -OrdinarySharesboughtbackduringtheyear - - - -OrdinarySharesoutstandingattheendoftheyear 569.00 1,138.00 569.00 1,138.00

b) Terms/ rights attached to ordinary shares

TheCompanyhasissuedonlyoneclassofordinaryshareshavingaparvalueof`2/-pershare. Eachholderofordinarysharesis

entitledtoonevotepershare.

Duringtheyearended31stMarch2014,theamountofdividendpersharerecognisedfordistributiontoordinaryshareholders is

`4/-(Previousyear:InterimDividendRS.2.50/-andFinaldividend`1.50/-pershare).

Ineventofliquidationofthecompany,theholdersofordinaryshareswillbeentitledtoreceiveremainingassetsofthecompany,after

distributionofallpreferentialamounts.

Thedistributionwillbeinproportiontothenumberofordinarysharesheldbytheshareholders.

c) Details of shareholders holding more than 5% shares in the Company

S. No. NameoftheShareholders As at 31 March 2014 As at 31 March 2013 No. of Shares

held (In Lakhs)

% of Holding No.ofShares

held(InLakhs)

%ofHolding

1 MriduHariDalmia(C/oMHDalmiaParivarTrust) 127.78 22.46% 122.56 21.54%2 DalmiaCement(Bharat)Limited 273.12 48.00% 258.15 45.37%3 DhartiInvestmentsandHoldingsLimited 34.77 6.11% 35.06 6.16%

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

reporting date: Nil.

Inrespectofsharesissuedforconsiderationotherthancash,1,23,52,500ordinarysharesof`2/-eachfullypaidupwherealloted

duringtheyear2007-08totheshareholdersoferstwhileDalmiaCement(Meghalaya)Limitedpursuanttoaschemeofarrangement

formerger.

73


` Lakhs2013-14 2012-13

3. RESERVES AND SURPLUS

Capital ReserveOpeningBalance 728.65 153.06 Add:IPRBenefitreceivedduringtheyear (6.37) 575.45 Add:MinorityShareofLoss 0.64 0.14 Closing Balance 722.92 728.65

Securities Premium ReserveOpeningBalance 19,600.00 19,600.00

Foreign Currency Translation ReserveOpeningBalance 1,023.01 Add:Arisedduringtheyear 7.10 -Add:MinorityshareofInterest 17.83 1,023.01Closing Balance 1,047.94 1,023.01Debenture Redemption ReserveOpeningBalance 1,526.35 1,402.68Add:TransferfromSurplusbalance - 123.67 Closing Balance 1,526.35 1,526.35General ReserveOpeningBalance 60,485.34 48,485.34Add:TransferfromSurplusbalance 12,011.94 12,000.00Closing Balance 72,497.28 60,485.34Surplus/ (Deficit)OpeningBalance 22,366.39 21,207.70Add:ProfitfortheyearaspertheStatementofProfitandLoss 10,754.80 15,946.71Less:Appropriations

ProposedDividend(`4/-PersharePY`1.50/-) 2,276.01 853.50 Dividenddistributiontaxonproposeddividend 386.81 145.05 InterimDividend(PYpershare`2.50/-) - 1,422.51Dividenddistributiontaxoninterimdividend - 230.77 TransfertoDebentureRedemptionReserve - 123.67 TransfertoGeneralReserve 12,011.94 12,000.00MinorityShareofProfit 39.38 12.52 TotalAppropriations 14,714.14 14,788.02

Closing Balance 18,407.05 22,366.39Total 1,13,801.54 1,05,729.74

Non Current Current Non Current Current2013-14 2012-13

4. LONG TERM BORROWINGSSecured

1 Redeemable Non-Convertible Debentures - - 1,100.00 [email protected]%(Redeemableduring2014-15to2016-17)[email protected]% 4,800.00 1,200.00 6,000.00 -(Redeemableduring2014-15to2016-17)

4,800.00 1,200.00 7,100.00 -Less:Shownunderothercurrentliabilites - - - -

4,800.00 1,200.00 7,100.00 -

Thedebenturesare securedbywayoffirstparipassu chargeoverfixedassets (presentand future)ofCementDivisionof the

CompanyexceptthosetoSyndicateBankareadditionalysecuredbywayoffirstpari-passuchargeonFixedAssetsofRefractory

DivisionoftheCompany.

74


` Lakhs Non Current Current Non Current Current

2013-14 2012-132 Term Loans

From BanksStateBankofIndia# 3,291.49 964.00 4,255.49 964.00 (Repayablein32quarterlyinstallmentsfromDec,10)StateBankofIndia# 4,973.07 1,420.00 6,393.08 1,420.00(Repayablein24quarterlyinstallmentsfromDec,12)StateBankofIndia# 5,000.00 - 1,300.00 -(Repayablein31quarterlyinstallmentsfromJune,15)ExportImportBankofIndia# 1,191.30 680.74 1,872.04 680.74 (Repayablein27quarterlyinstallmentsfromJune,10)ExportImportBankofIndia(ForeignCurrencyLoan)# 1,670.98 954.84 2,382.29 866.29 (Repayablein27quarterlyinstallmentsfromJune,10)AxisBankLimited# - 1,500.00 1,500.00 2,000.00(Repayablein20quarterlyinstallmentsfromMar,10) - -UnitedBankofIndia$ 1,664.80 833.32 2,500.04 833.98 (Repayablein24quarterlyinstallmentsfromApr,11) - -UnitedBankofIndia$ 4,846.65 909.39 6,062.45 1,212.52(Repayablein32quarterlyinstallmentsfromApr,11)UnitedBankofIndia$(Repayablein26quarterlyinstallmentsfromSep,15) 4,528.84 - AxisBankLimited#(Repayablein30quarterlyinstallmentsfromMar,19) 2,500.00 - StateBankofIndia,SanghaiBranch* - - - 642.78 (YearlyMaturityandRenewable)BankofBaroda,DubaiBranch* 348.94 524.04 804.61 319.80 (RepayableinquarterlyinstalmentstillOctober2016)StateBankofIndia,MauritiusBranch^ - 604.90 548.80 -(RepaybleinTwoinstalmentsof5LacsUSDeachfromSept14)StateBankofIndia,MauritiusBranch^ - - - 140.33 (RepayableinquarterlyinstalmentsfromApril2009)

From OthersInternationalFinanceCorporation@ 6,313.86 3,156.92 9,470.78 3,156.92(Repayablein13halfyearlyinstallmentsfromOct,10)InternationalFinanceCorporation@ 12,098.00 - (Repayablein14halfyearlyinstallmentsfromOct,10)

48,427.93 11,548.15 37,089.58 12,237.36Less:Shownunderothercurrentliabilites - (11,548.15) - (12,237.36)

(Refernoteno9) 48,427.93 - 37,089.58 -

#SecuredbyFirstparipassuchargebywayofmortgageandhypothecationoverallimmovablepropertiesandmoveablefixedassets

ofCementDivision,(bothpresentandfuture)andfurthersecuredbysecondparipasuchargeonallcurrentassetsoftheCompany.

$SecuredbyFirstchargeonfixedassetsoftheCementDivisionofCompany,bothpresentandfuturetobesharedparipassuwith

theprovidersoftheotherdebtandexistinglenders,furthersecuredbywayofsecondparipasuchargeoncurrentassetsofCement

Division.

@Securedby First rankingmortgage andHypothecationon all immovable&movable, present& future assets related to the

CementDivision(excludingCurrentAssets)tobesharedparipassuwithotherlendersinrespectofotherdebtsandexistingsecured

lenderstotheCementDivisioninrespectoftheexistingdebt.

*SecuredbytheguaranteegivenbytheholdingcompanyOCLINDIALIMITED.

^SecuredbythesubservientchargeonthemovableassetsofholdingcompanyOCLINDIALIMITED.

75



2013-14 2012-13UnsecuredPublicDeposits

-RelatedParties(Refernoteno29.9(b1f)) - - - 15.00 -Others 688.66 114.84

From Others - - 422.97 421.22 688.66 114.84 422.97 436.22

Less:Shownunderothercurrentliabilites - (114.84) - (436.22)(Refernoteno9) 688.66 - 422.97 -

#(Repayablein2014-15&2015-16)Grand Total 53,916.59 12,862.99 44,612.55 12,673.58Less:ShownunderothercurrentLiabilities - (11,662.99) (12,673.58)

53,916.59 1,200.00 44,612.55 -

2013-14 2012-135. DEFERRED TAX LIABILITIES (NET)

Liabilities:Depreciation 15,442.01 14,173.06Exchangegainonloanforcapitalexpenditure - -ExcessExpenseAllowableincomputingtaxableincomeonaccrualbasis - 62.28

15,442.01 14,235.34Assets:

DifferenceofvalueofStocku/s145AoftheIncomeTaxAct,1961 322.59 342.73 Expensesallowableincomputingtaxableincomeonpaymentbasis 591.62 250.00 Exchangelossonloanforcapitalexpenditure 288.73 219.79 UnabsorbeddepreciationunderIncomeTaxAct,1961 0.08 ProvisionforDoubtfulDebts&obsolescence 598.03 408.30

1,801.05 1,220.82NetLiability 13,640.96 13,014.52

6. OTHER LONG TERM LIABILITIESTradePayables(Duetomicro&smallenterprises-Nil) 3,225.44 3,160.25Accruedinterestonpublicdeposits 54.62 19.74

3,280.06 3,179.99

7. SHORT TERMS BORROWINGSSecureda) Loansrepayableondemand

CashCreditsfromBanks* 9,847.95 13,751.13b) FromRelatedParty - -c) OtherLoansandadvances

Buyer'sCreditfromBanks$ - 11,175.46UnsecuredPublicDeposits

-RelatedParties 26.75 --OtherthanRelatedParties 676.58 428.43

10,551.28 25,355.02*Workingcapitalfacilities(fundbased&nonfundbasedlimits)aresecuredbyfirstparipassuchargeoverstocks,stores,rawmaterials,inventories,workinprogress,finishedgoodsandalsobookdebts,billsandmoneysreceivableoftheCompanybywayofhypothecation.ThesefacilitiesarefurthersecuredbysecondchargeoverthefixedassetsoftheCementDivisionoftheCompany.LimitatSBI,Hongkongissecuredbyguranteegivenbyholdingcompany.$Buyerscreditissecuredbysubservientchargesonmoveablefixedassetsofcementdivisionofthecompany.

76


`Lakhs2013-14 2012-13

8. TRADE PAYABLESMicro&SmallEnterprises 28.64 94.88 Others 22,294.46 17,211.63

22,323.10 17,306.51

Disclosure as per Section 22 of “The Micro, Small and Medium Enterprises Development Act 2006”:

Particulars As at 31st March,

2014

As at 31stMarch,

2013 (i) theprincipalamountandtheinterestduethereonremainingunpaidtoanysupplier

-PrincipalAmount - --Interestthereon - -

(ii) theamountofinterestpaidbythebuyerintermsofSection16,alongwiththeamountsofthepaymentmadetothesupplierbeyondtheappointedday

- 0.20

(iii) theamountofinterestdueandpayablefortheperiod(wheretheprincipalhasbeenpaidbutinterestundertheMSMEDAct,2006notpaid)

- 0.01

(iv) Theamountofinterestaccruedandremainingunpaid - 0.25 (v) Theamountoffurtherinterestdueandpayable - 0.06

`Lakhs2013-14 2012-13

9. OTHER CURRENT LIABILITIESCurrentmaturitiesoflong-termdebts(Refernoteno4) 12,862.99 12,673.58Interestaccruedbutnotdueonborrowings 900.24 1,048.17Unpaiddividends# 96.54 97.99 Unpaidmatureddepositsandinterestaccruedthereon# 14.51 18.78 On Capital Account 3,951.22 3,376.43Creditorsforexpenses - SecurityDeposits 10,951.87 8,193.22Advancepaymentsfromcustomers 4,015.14 3,486.08Otherpayables

ProcessingFees/OtherLiabilities 39.77 136.96 Statutorydues 3,330.51 2,112.10Directors commission 37.40 37.40 Recoveriesfromemployeesonbehalfofothers 60.10 53.59

36,260.29 31,234.30#Therearenoamountdue&outstandingtobecreditedtotheInvestorEducation&ProtectionFund

10. SHORT TERM PROVISIONSEmployeebenefits

Leaveencashment(unfunded) 414.77 328.18 Superannuation(funded) 18.66 18.86

OthersMarktomarketonderivativecontract - Exchangefluctuation-forwardcontracts 8.20 1.44 Proposeddividend 2,276.01 853.50 Taxonproposeddividend 386.81 145.05 Others - 1.53

3,104.45 1,348.56

77

Corporate Overview Management Reports Financial Statements11

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78


`Lakhs2013-14 2012-13

12. MINE DEVELOPMENT & PRE OPERATIVE EXPENSESMineDevelopment&Pre-OperativeExpenses:MineDevelopmentDirectExpenses:GeologicalReportofMiningofCoalBlockasInterimrecoverablecostofexploration 53.85 53.86 FinancecostforIssuingBankGuarantee 20.20 20.20

74.05 74.06 Less:IntreceivedonFDforissueofBankGuarantee 18.37 12.60 Total(A) 55.68 61.46 MineDevelopmentAdministrativeExpensesAuditor'sRemuneration 0.03 0.03 BankCharges 0.03 0.03 Filing Fees 1.78 1.78 Travelling&Conveyance 0.72 0.50 AdvertisementExpenses 0.21 0.21 ApplicationFees 0.34 0.34 Depreciation 0.24 0.18 Printing&Stationery 0.15 0.13 Salary,Bonus,LeaveEncashment&medicalreimbursement 12.10 6.98 OfficeRent 0.44 0.33 TelecommunicationExpenses 0.08 0.05 GeneralExpenses 0.74 0.70 Professionalfees 3.73 3.45 PreliminaryExpenses 0.44 0.44 BooksandPeriodicals(PY`327/-) 0.01 0.00 Chanda&subscription 0.13 0.13 Insurancepremium(`126/-,PY`65/-) - 0.00 CorporateSocialResponsibilityExpenses 0.25 0.20 Postage&telegram(PY`369/-) 0.01 0.00 Power&fuel 0.03 0.02 Taxihirecharges 0.81 0.56 Delegatefees(`334,PY`334/-) - 0.00 Computer&Peripherals(PY`358/-) 0.01 0.00 Rates&Taxes(PY`499/-) 0.01 0.00 LegalExpenses 0.21 -Fees&Subcription(`79/-) - -Repairs&Maintenances(Others)(`340/-) - -OtherInterest(`315/-) - -LossonTheftofTelevision 0.01 Roundedoff - 0.00 SurveyWork 1.71 0.49

24.22 16.55 Less:InterestreceivedonFixedDeposit 16.85 11.46 Less:InterestreceivedfromIncomeTaxDepartment 0.03 0.04 Total(B) 7.34 5.05 Total (A+B) 63.02 66.51

Note:Amountbelow`500/-aregiveninbracket

79


` LakhsFace Value No. of

Shares/UnitsAmount ( In

` Lakhs)No.of

Shares/UnitsAmount(In

`Lakhs)2013-14 2012-13

13 NON CURRENT INVESTMENTSTRADE - Unquoted - At CostEquity Instruments - Fully paid upJoint Venture

Radhikapur(West)CoalMiningPvtLtd(Note29.6) 10 38,35,000.00 383.35 38,35,000.00 383.35 Others

FirstCapitalIndiaLimited 6 166.00 0.01 166.00 0.01 IndiaInformationTechnologyLimited(`10/-) 10 1.00 - 1.00 -

Preference Shares - Fully paid upAssociatesTotal (A) 38,35,167.00 383.36 38,35,167.00 383.36

*Redeemableattheoptionofthecompanyintrenchesofthecompany’schoicebutnotlaterthan10yearsfromthedateofissue.

NON TRADE - UNqUOTED (Unless Otherwise Stated)At CostEquity Instruments - Fully paid upOthers

CrescentFinstockLimited 10 1,400.00 - 1,400.00 -GujaratCompositeLimited 10 16.00 - 16.00 -IspatProfilesIndiaLimited(`75/-) 10 50.00 - 50.00 -BagalkotUdyogLimited 1 100.00 0.01 100.00 0.01 OrissaIndustriesLimited 10 73,450.00 1.40 73,450.00 1.40 TheScindiaSteamNavigationCompanyLtd 20 504.00 0.06 504.00 0.06 TheTravancoreCementsLimited 10 100.00 0.01 100.00 0.01 DigvijayFinleaseLimited 10 25.00 - 25.00 -IndoFlogatesLimited 10 100.00 0.01 100.00 0.01 BagalkotCement&IndustriesLtd 10 1.00 - 1.00 -KanoriaSugar&GeneralMfg.CoLtd(`183/-) 10 25.00 - 25.00 -Magnesite&MineralsLimited 10 100.00 0.01 100.00 0.01 UshaIspatLimited 10 100.00 0.01 100.00 0.01 OrindExportsLimited(`201/-) 10 100.00 - 100.00 -

Debentures or BondsNon-convertibleSecured-Fullypaidup

8%-IndianChamberofCommerce 100 12.00 0.01 12.00 0.01 Non-convertibleSecured-Partlypaidup

8%-IndianChamberofCommerce-Fractional(`50/-) 25 2.00 - 2.00 -Others - Fully Paid up

Co-operativeSociety 100 50.00 0.05 50.00 0.05 PropertyRightsinHolidayResort 4.00 0.41 4.00 0.41

Total (B) 76,139.00 1.98 76,139.00 1.98 Total (A + B) 39,11,306.00 385.34 39,11,306.00 385.34 Quoted Investments -UnquotedInvestments 6,217.39 385.34

6,217.39 385.34 MarketvalueofquotedinvestmentsNote:Costbelow`400/-aregiveninbrackets

80



2013-14 2012-13

14 LOANS AND ADVANCESCapital Advances Secured-consideredgood 624.37 - 2,311.18 -Unsecured-consideredgood 485.96 - 1,509.65 -Unsecured-considereddoubtful - - 6.36 -Less:Provisionfordoubtfuladvances - - 6.36 -Security Deposits Unsecured,consideredgood 27.80 2,642.76 62.38 2,442.69Loans and advances to related partiesUnsecured,consideredgood(Refernoteno29.9b(2j) - 0.93 23.07 Other loans and advancesSecured,consideredgood

Loantoemployees 15.53 6.66 7.59 2.64 Advancesrecoverableincashorinkind - -

Unsecured,consideredgood - - Interest Accrued on InvestmentsBalanceswithgovtauthorites - 5,123.61 - 2,827.21Advanceforallotmentofshares - - Loan/Advancesrecoverableincash/kind 79.02 3,206.57 97.90 3,798.23Loans/advancestorelatedparties - - Loans/advancestoemployees* 30.13 102.44 10.11 57.69 Matcreditentitlement - 208.02 - -Advanceincometax(netofprovisionfortaxation) - 2,886.64 - 3,570.12

Unsecured-considereddoubtful - 27.14 - 52.86 Less:Provisionfordoubtfuladvances - 27.14 - 52.86

1,262.81 14,177.63 3,998.81 12,721.65 Loan due by director or other officers etc

*OtherofficersoftheCompany 43.92 19.10

2013-14 2012-13

15 OTHER NON CURRENT ASSETSUnsecured,consideredgood 27.93 27.02 Accrued Interest 27.93 27.02

81


` Lakhs No. of Shares/

Units Amount (In `

Lakhs) No. of Shares/

Units Amount (In `

Lakhs) 16 CURRENT INVESTMENTS

NON TRADE - UNqUOTED At Cost or NAV whichever is lowerUnits of Mutual Funds - Fully Paid up

UTITreasuryAdvantageFund-InstPlan(DDP)-Reinvest

6,37,339.68 6,388.19 8,84,476.41 8,846.66

BirlaSunlifeSavingFund-Instl.-DD-Reinvest 71,17,374.71 7,147.70 44,80,144.13 4,484.39BirlaSunLifeFixedTermPlanSeriesFCGrowth - 1,98,00,000.00 1,980.00BSLDynamicBondFund-Retail-Growth - 94,89,165.05 1,799.99MF-IDFC Money Manager Fund -Treasury Plan-DailyDividend

1,59,17,599.05 1,602.89

ICICIPrudentialFlexibleIncomePlanPremium-DailyDividend

57,98,148.59 6,130.72 33,74,944.15 3,568.50

ICICI Prudential Inst Short term Plan - DivdReinvestment Fortnight

38,582.22 4.58 6,09,915.66 75.81

ICICI Prudential Regu Short term Plan - DivdReinvestment Fortnight

- 14,983.64 1.80

ICICIPrudentialFMPSeries63-370Days - 2,00,00,000.00 2,000.00ICICI-ShorttermPlan-RegularGrowth - 38,87,997.76 900.00 ICICIPrudential IntervalFundQuartely IntervalPlanI-DirectPlan-Dividend

80,00,000.00 800.00

ICICI Prudential Interval Fund II QuarterlyIntervalPlanB-DirectPlan-Dividend

49,98,250.00 500.00

SBI-SHF-UltraShorttermFund-RegularPlan-DD 1,13,572.54 1,139.05 2,05,892.44 2,061.57Templeton India Short term income retail plan 35,256.23 800.00 35,256.23 800.00 Total 4,26,56,123.01 24,513.13 6,27,82,775.45 26,518.72 Less: Provision for dimunition in the value ofInvestments

Net Asset Value 24,631.02 27,069.20

2013-14 2012-1317 INVENTORIES (REFER NOTE 1.6 OF STANDALONE FOR MODE OF VALUATION)

Raw Materials and components-InStock 7,532.47 7,299.24-InTransit 55.52 649.22

Work-in-progress-InStock 4,500.70 5,725.36-InTransit 212.08 116.14

Finished goods-InStock 7,850.24 9,705.04-InTransit 601.03 625.02

Stock-in-trade-InStock 27.17 279.11 -InTransit 552.96

Stores,spares,fuel&packingmaterials-InStock 10,126.48 12,760.00-InTransit 3,569.69 202.77

LooseTools 26.31 28.34 -InStock -

Total 35,054.65 37,390.24

82


`Lakhs2013-14 2012-13

18 TRADE RECEIVABLESOutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment

Secured,consideredgood 464.79 116.69 Unsecured,consideredgood 1,539.40 1,186.19Unsecured,considereddoubtful 1,389.01 903.07

3,393.20 2,205.95Less:Provisionfordoubtfuldebts 1,389.01 903.07

2,004.19 1,302.88Others

Secured,consideredgood 6,732.82 4,159.13Unsecured,consideredgood 17,709.29 15,210.34

24,442.11 19,369.47Total 26,446.30 20,672.35TradeReceivablestatedaboveincludedebtsdueby:

Directors*

OtherofficersoftheCompany*

Firminwhichdirectorisapartner*

PrivateCompanyinwhichdirectorisamember

2013-14 2012-13

19 CASH & BANK BALANCESCash & Cash EquivalentsBalancewithbanks:

-Incurrentaccounts 6,740.57 5,631.36-Indepositwithoriginalmaturityoflessthan3months 1,766.02 7,563.80-Inunpaiddividendaccount 96.54 97.99

Cheques,draftsonhand - 190.26 Funds in transit - Cash on hand 406.67 370.24 Stamps on hand 0.03 0.04 Other Bank BalancesDepositswithoriginalmaturityofmorethan12months - DepositsEarmarked(CY-AgstPublicDeposits)/PY-AgstPublicDeposit&NOC)* 197.64 670.52 Depositswithoriginalmaturityofmorethan3months 3.00 -

9,210.47 14,524.21Less:Shownunderothernoncurrentassets - (Refernoteno13) 9,210.47 14,524.21*Includesdepositof`450lakhs(PY)lienmarkedagainstobligation&64.45Lakhs(CY)59lakhs(PY)asmarginforBankGuarantee

20 OTHER CURRENT ASSETSInterestaccruedbutnotdue 270.23 205.82 Claims&otherreceivable

Considered good 312.25 217.89 Considereddoubtful 8.44 7.33

Assetsheldforsale(atlowerofnetbookvalueandnetrealisablevalue) 14.87 11.23 Others 16.53 0.32

622.32 442.59 Less:Setofffromprovisionfordoubtfuldebts 8.44 7.33

613.88 435.26

83


`Lakhs

2013-14 2012-13

21 REVENUE FROM OPERATIONS (REFER NOTE NO 1.4 ON REVENUE RECOGNITION)Sale of Products

Cement 1,73,776.58 1,68,374.37

Refractories 28,925.92 27,431.57

Power 216.57

Others-Clinker 2,456.68 1,009.48

Others-Dolomite 63.50 73.74

Self Consumption of Products

Cement 452.30 381.89

Refractories 1,080.71 958.34

Sale of Traded Products

Slag,Coal&Gypsum 5.54 3,509.38

Refractories 14,142.14 7,422.11

Sale of Services

MarketingServices 654.93 418.32

BusinessAuxiliaryServices 9.07 15.40

Other Operating Revenue 697.40 845.59

2,22,481.34 2,10,440.19

Less: Excise Duty 28,128.08 25,576.13

1,94,353.26 1,84,864.06

22. OTHER INCOMEInterestReceipts-Ondeposits,taxrefundsandfromcustomersetc. 583.53 268.41

Profitonsaleofassets 0.71 -

GainduetoExchangeDifferenceotherthanconsideredasfinancecost(Net) - 4.29

Dividendsfrominvestmentsinmutualfunds-current 871.80 1,283.33

Profitonsaleoflongterminvestment 681.20 -

Profitonsaleofcurrentinvestments 19.55 1.58

OtherNonOperatingIncome 1,781.18 980.10

3,937.97 2,537.71

23. COST OF MATERIALS CONSUMEDi) Limestone(OwnQuarry)-Seenotebelow 11,090.33 9,744.14

ii) Slag 15,212.52 15,568.79

iii) PurchasedClinker - 2,686.44

iv) Others# 21,625.01 18,022.91

47,927.86 46,022.28

84


`Lakhs2013-14 2012-13

Note:a) # None of these individually account for more than 10% of the total cost of material

consumedb) Expenses included in the cost of raw materials

SalariesandWages 602.90 504.57 ContributiontoProvidentandOtherFunds 64.66 61.43 WorkmenandStaffWelfareExpenses 42.02 54.84 PaymenttoContractorsforServices 1,588.39 1,809.42PowerandFuel 854.70 1,085.64ConsumptionofStoresandSpareParts 3,115.50 1,720.59RepairstoMachinery 1,750.15 1,510.11RepairstoBuildings 4.17 19.06 RoyaltyandCess 1,691.29 1,828.00Rent 1.46 4.91 RatesandTaxes 119.02 79.33 Insurance 32.79 24.51 Commission to Other Agents - -Depreciation 2,173.39 2,314.00SundrySales/Income (47.56) (36.08)

11,992.88 10,980.33

24. PURCHASE OF GOODS TRADEDSlag,Coal&Gypsum 5.76 3,454.03Refractories 2,946.87 4,668.91

2,952.63 8,122.94

25. CHANGES IN INVENTORIES OF FINISHED GOODS , WORK IN PROGESS & STOCK IN TRADEStocksatthebeginningoftheyear

Finished Goods 10,330.06 3,269.92Traded Goods 279.11 380.24 WorkinProgress 5,841.50 1,252.78

16,450.67 4,902.94 16,450.67 1,650.51

Less:Stocksattheendoftheyear(Seefootnotebelow)Finished Goods 8,451.28 10,330.06Traded Goods 580.13 279.11 WorkinProgress 4,712.78 5,841.50

13,744.19 16,450.67 2,706.48 (9,897.22)

Foot Note:-StockinTrade

Finsihed GoodsCement 2,840.62 4,718.77Refractories 5,610.66 5,611.29

8,451.28 10,330.06Traded Goods

Refractories 580.13 279.11 WorkinProgress

Cement 3,257.06 4,567.11Refractories 1,455.72 1,274.39

4,712.78 5,841.50

85


`Lakhs2013-14 2012-13

26. EMPLOYEE BENEFITS EXPENSE(Refernote1.8ofStandaloneonemployeebenefits)Salaries,Wages,BonusandGratuity 9,713.45 8,072.61ContributiontoProvidentandOtherFunds 946.74 873.87 ContributiontoProvidentandOtherFunds-Contractorsemployees 309.30 262.57 WorkmenandStaffWelfareExpenses 480.37 497.56

11,449.86 9,706.61

2013-14 2012-1327. FINANCE COSTS

InterestexpenseOnTermLoans,DebenturesandDeposits 5,746.19 7,089.75ToBanksandOthers 1,037.51 262.64

OtherBorrowingCost 175.38 253.77 Applicablenetgain/lossonforeigncurrencytransactionsandtranslation 147.20 161.40

7,106.28 7,767.56

2013-14 2012-1328. OTHER EXPENSES

ConsumptionofStores,SparepartsandPackingmaterials 9,955.63 9,074.98Repairs and Maintenance

Machinery 5,691.85 5,798.88Buildings 530.83 632.21 Others 190.94 159.01

PaymentstoContractorsforServices 4,540.35 4,245.27PaymentsforServices 107.18 23.43 RoyaltyandCess 15.78 14.54 Rent 954.11 676.56 RatesandTaxes 2,013.79 972.42 ExcisedutyonStockandOthers (409.95) 1,098.00Freight,TransportationandHandling 26,966.41 20,581.90Commission to Selling Agents 762.31 598.57 Rebates,DiscountsandAllowances 525.65 393.40 Insurance 323.61 274.78 Travelling 696.44 513.72 AdvertisementandPublicity 1,671.85 1,929.48Legal 158.14 238.25 Directors'TravellingandConveyance 16.66 15.18 Directors'Fees 9.90 10.30 CommssiontoNonExecutiveDirectors 41.55 41.55 CommssiontoExecutivevicechairman&ManagingDirector 100.00 -CharityandDonations 556.96 487.70 LossonsaleofCurrentInvestments 42.70 -AssetsWrittenoffandLossonSaleofAssets 2.50 10.89 LossduetoExchangefluctuationotherthanfinancecost(Net) 859.33 133.20 ProvisionforObsolesenceInventory 26.17 ProvisionforDoubtfulDebts 474.81 191.01 BadDebtsWrittenOff 0.50 PaymenttoOutsideAgency 3,903.96 2,663.34MiscellaneousExpenses 5,038.97 3,514.35Total 65,768.93 54,292.92

86


`Lakhs2013-14 2012-13

29. OTHER NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS29.1 Contingent liabilities not provided for in respect of :

(i) ClaimsagainsttheCompanynotacknowledgedasdebts(a) Disputed liability relating to ESI Contribution on over time wages and other

allowances57.95 55.95

(b) DisputedliabilityrelatingtoPFContributiononcertainallowances 71.22 71.22(c) Disputed liability relating topaymentof premiumon forest landused forMining

purpose154.13 154.13

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

penal charges197.49 175.91

(g) DisputedSalesTaxdemand(includinginterest&penalty)-matterunderappeal 665.57 629.00(h) DisputedEntryTaxdemand-matterunderappeal 293.28 149.66(i) DisputedExcisematters 3,756.38 4,265.49(j) DisputedcounterclaiminaArbitrationmatter. - -(k) DisputedliabilitiesrelatingtopurchaseofElectricity 302.16 358.92(l) DisputedliabilitiesforLanjibernaMinesforpaymentofStampDuty 8349.76 0.00(m) Others 222.15 363.04

14,235.26 6,388.48(ii) OthermoniesforwhichtheCompanyiscontingentlyliable:

(a) Disputedliabilityrelatingtolabourmatters-pendinginCourts 4.57 4.57(b) DisputedliabilityrelatingtoLandmatters-pendinginCourts 39.51 39.51(c) Others 78.50 78.50Total 122.58 122.58

(iii) DisputedliabilityinrespectofIncomeTaxdemands 213.03 302.88

In respect of items above, future cash outflows in respect of contingent liabilities aredeterminable only on receipt of judgements / decisions pending at various forums /authorities.

(iv) a) Guarantee given to Banks on behalf of Radhikapur (West) Coal Mining PrivateLimited againstwhichcounterguaranteeof`3.32Lakhs(PY561Lakhs)hasbeenreceivedfromOISL

636.00 1076.00

29.2 Estimatedamountofcontractsremainingtobeexecutedoncapitalaccount(netofadvances)andnotprovidedfor

5,865.96 15,644.97

29.3 IntheopinionoftheBoardandtothebestoftheirknowledgeandbelief,thevaluationonrealisationofcurrentassets,loansand

advancesintheordinarycourseofbusinesswouldnotbelessthantheamountatwhichtheyarestatedintheBalanceSheet.

29.4 TheSupremeCourtofIndiainApril,1996,upheldthevalidityofJutePackingMaterials(CompulsoryuseinPackingCommodities)

Act,1987.TheCompanyhasbeenlegallyadvisedthattheActisapplicabletoitonlywitheffectfromOctober,1996.UndertheAct,

CementManufacturersarerequiredtouseJutePackagingMaterialforsupplyordistributionupto50%oftheirtotalproduction.

TheCalcuttaHighCourthasgrantedstayagainstshowcausenoticereceivedbytheCompanyfromtheJuteCommissioner.The

TransferPetitionfiledbytheUnionofIndiabeforetheHon’bleSupremeCourtwasdismissedbytheHon’blecourtduetodefault

andasaresultofwhichthependingwritoftheCompanywillbeheardbytheHon’bleKolkataHighCourtonmerits.Theamount

thatmaybecomepayable,ispresentlynotascertainable.However,theGovernmenthasnotnotifiedthecompulsorypackingof

Cementinjutepackingmaterialsfortheperiodeffectivefrom1stJuly,1997.

29.5 Duringtheyearanamountof`115.00lakhs(PY25.00Lakhs)hasbeendonatedto“RashtriyaAhinsaManch”aregisteredPolitical

partyundersection29AofRepresentationofthePeopleAct,1951havingitsregisteredofficeat132/1,MahatmaGandhiRoad,

Kolkata-700007.

87



29.6 InrespectoflicencegrantedforcaptiveminingBlockatRadhikapurmines,aJointVenturecompanyRadhikapur(West)CoalMiningPrivateLimitedhasbeen incorporatedon29thMarch2010 inwhichtheCompany’s interest jointlywithOCL Iron&SteelLimited(OISL)is14.696%.TheCompanyhasinvested̀ 734.80Lacs(PY734.80Lacs)inequitysharesoftheJVCompanywhichincludes̀ 383.35 Lacs(PY383.35Lacs)beingproportionatevalueofsharestobetransferedtoOISLafterthereceiptofapprovalfromtheMinistryofCoal,GovtofIndiaandotherJointVenturePartners.

TheMinistryofCoal,Governmentof Indiavide its letterdt.14.2.2014cancelled theallocationof coalblocks to the jointventurecompany,allegingdelay inundertakingproduction.The joint venturecompanyandtheCompanyfiledawritpetitionbeforetheHon’bleDelhiHighCourt,whichhasdirectedtheMinistrytomaintainstatusquotillthenextdateofhearingandnottotakeanyfurtherstepstoreallocate,thecoalblocksorforcreatinganythirdpartyrightstherein,tilltheirfurtherorders.TheCourthasalsogivenlibertytotheCompanytoapproachit,ifthereisanyactionforencashmentofbankguarantee.TheCompanyhastakenthestandthatthedelayhasoccurred,mainlyonaccountoftheStateandCentralGovernmentandconsequentlyde-allocationisnotwarranted.Inthecircumstances,thecompanyisoftheviewthatthesituationdoesnotaffectthecarryingcostoftheinvestmentsanditisnotrequiredtorecognisedecline(ifany)ofitsinvestmentsasontheBalancesheetdate.

29.7 Bankbalancesincludes`45,494/-(PY`45,794/-)lyinginacurrentaccountwithanationalisedbank,tobeoperatedjointlybytheauthorised

signatoriesoftheCompanyandOISLinrespectofCoalBlockOperationsasmentionedinnote28.7ofStandaloneFinancialStatement.`Lakhs

Cement Refractory Others Unallocable Total 29.8 Segment Disclosure (AS - 17)

Segment operating RevenueExternal 1,76,455.37 43,786.79 - 8.77 2,20,250.93

(1,72,893.23) (35,345.74) - (15.40) (2,08,254.37)Inter-Segment 22,303.00 1,538.00 - - 23,841.00

(4.35) (421.39) - - (425.74)Segment Result

Profit/(Loss)beforetaxandinterest 22,303.00 2,840.00 - (3,724.17) 21,418.83 (31,310.17) (2,252.82) - (2,843.28) 30,719.71

Less:Interest (7,106.28) (7,106.28)(7,767.56) (7,767.56)

ProfitbeforeTaxation 14,312.55 22,952.15

ProvisionforTaxation-Current (3,077.05) (3,077.05)(5,900.00) (5,900.00)

-Deferred (688.72) (688.72)(905.44) (905.44)

-Taxrelatingtoearlier years

- -

-MATcreditavaliablefor Reversed/(-)setoff

208.02 208.02

(200.00) (200.00)ProfitafterTaxation 10,754.80

(15,946.71)Other Information

Segment Assets 1,85,494.25 44,478.67 28,390.20 2,58,363.12 (1,72,781.05) (37,225.42) (33,238.66) (2,43,245.13)

SegmentLiabilities 39,796.22 11,681.50 91,945.36 1,43,423.08 (31,425.90) (6,597.13) (98,353.86) (1,36,376.89)

CapitalExpenditureincludingcapitalWIP 34,599.18 905.52 24.87 35,529.57 (13,290.84) (818.27) (251.17) (14,360.28)

Depreciation 14,245.81 1,075.98 73.54 15,395.33 (15,560.07) (708.16) - (42.54) (16,310.77)

Noncashexpensesotherthandepreciation:ProvisionforLeaveencashment 77.33 -3.06 12.32 86.59

(14.59) (16.08) (6.52) (37.19)

Note:

a) As per practice consistently followed, inter segment transfers for capital jobs recognised at cost and for other jobs at estimatedrealisablevalue.

b) Businesssegmentisconsideredasprimarysegmentandthereisonlyonegeographicalsegment

88



29.9 RelatedPartyDisclosures(AS-18)

a) Relatedpartiesandtheirrelationship:

1) Keymanagementpersonnel:ShriMHDalmia,ShriRHDalmia,Shri.GauravDalmia(Exec.ViceChairman&MD),ShriD.D.Atal

(WholetimeDirector)

Relatives:Shri.A.H.Dalmia,Shri.V.H.Dalmia,ShriY.HDalmia,Smt.AbhaDalmia,Smt.PadmaDalmia,Smt.ShripriyaDalmia

Thirani,Smt.AnuradhaJatia,Smt.KanupriyaSomany,Smt.SharmilaDalmia,Shri.PuneetYaduDalmia,Smt.KiranAtal.

2) Enterprises overwhich keymanagement personnel are able to exercise significant influence : HariMachines Limited,

DalmiaBharatSevaTrust,DalmiaInstituteofScientific&Research(DISIR),DaltonInternationalLtd,DalmiaCement(Bharat)

Ltd.,LandmarkPropertyDevelopmentCo.Ltd,ShreeNatrajCeramic&Chemical IndustriesLtd,AstirPropertiesPvt.Ltd,

LandmarkLandholdingsPvt.Ltd,DalmiaBharatSugar&IndustriesLtd,DalmiaBharatLtd(FormalyDalmiaBharatEntrprises

Ltd),CalcomCementIndiaLtd,DebikaySystemsLimited,KiranResources(P)Ltd,DalmiaRefractories(Prop:DalmiaBharat

EnterprisesLtd.),DalmiaMagnesiteCorporation(Prop:DalmiaBharatSugar&IndustriesLtd.

b) Transactionswithaboveinordinarycourseofbusiness:

`Lakhs

2013-14 2012-13

1) Transactionswithpartiesreferredin(1)above:

(a) Remuneration/Pension 839.53 526.89

(b) FixedDepositreceived 7.75 28.04

(c) InterestExpense 1.98 2.41

(d) Servicereceived 9.79 7.00

(e) RentPaid 58.93 28.04

(f) Payableattheyearend 33.90 22.36

2) Transactionswithpartiesreferredin(2)above:

(a) Purchaseofgoods 370.81 161.57

(b) Purchaseoffixedassets 60.80 47.51

(c) Saleofgoodsandfixedassets 3,008.65 2,087.67

(d) Servicerendered 108.03 26.93

(e) Servicereceived 2,959.72 2,548.76

(f) Intercorporatedepositreceviedback - (1,000.00)

(g) InterestIncome - 38.36

(h) Advancegivenandreceived - 4.85

(i) RentPaid 13.93 29.64

(j) Receivableattheyearend 1,455.27 449.93

(k) Payableattheyearend 851.13 2,400.59

c) DisclosureofMaterialtransactionswithRelatedParties

Remuneration

Syt.M.H.Dalmia 22.66 22.37

Syt.R.H.Dalmia 278.11 149.63

Shri.D.D.Atal 182.52 145.29

Shri.Gaurav Dalmia 280.82 152.07

89


`Lakhs

2013-14 2012-13

Purchase of fixed assets

HariMachinesLtd. 2.41 47.51

Purchase of goods

DalmiaCement(Bharat)Ltd. 1.30 11.32

DalmiaBharatSugar&IndustriesLtd 33.66 45.97

DalmiaBharatLtd 270.93 104.23

Sale of goods and fixed assets

CalcomCementIndiaLimited 2,082.10 1,183.55

DaltonInternational.Ltd 899.22 812.02


Service rendered


Service received



DalmiaBharatLtd 2,681.66 2,282.10

DISIR 119.70 116.74


AstirPropertiesPvt.Ltd.(Rent) 13.93 28.04

Inter corporate deposit received back

CalcomCementIndiaLimited - (1,000.00)

Interest Income

CalcomCementIndiaLimited - 38.36

Receivable at the year end

DaltonInternational.Ltd 899.22 -


CalcomCementIndiaLimited 542.49 387.81

Payable at the year end


DalmiaBharatLtd 697.82 2,282.10


29.10 Earning per share (EPS) AS - 20

Profitaftertax(In`Lakhs) 10,715.42 15,934.19

WeightedAverageNo.ofequitysharesof`2 each as on 31.03.2014

Basic&Diluted(No.inLakhs) 569.00 569.00

EPS(`)

Basic&Diluted 18.83 28.00


90



29.11 Following Joint Venture has been consolidated on proportionate basis:

`Lakhs

NameoftheCompany CountryofIncorporation

ProportionofOwnership Interest as

atMarch31,2014

Radhikapur(West)CoalMiningPrivateLimited India 7.029%

i) TheJointVentureisajointlycontrolledentitywiththejointcontroloverfinanceandmanagementbyalltheJVShareholders,

which isclearlyspeltout intheMemorandumandArticlesoftheJointVentureCompany.Radhikapur(West)CoalBlockhas

beenallottedtothreeventurersviz.RungtaMinesLimited,OceanIspatPrivateLimitedandOCLIndiaLimitedbyGovt.ofIndia,

MinistryofCoalvidetheirletterNo.13016/77/2006-CA-Idated21stDecember,2009.

ii) Details of theOCL India Limited’s share of assets and liabilities in the Joint Venture included in the Consolidated Financial

Statementsareasfollows:

Particulars As at March 31, 2014

(unaudited)

As at March 31,2013

(unaudited)

EqUITY & LIABILITIES

Current Liabilities

Tradepayables 0.92 0.85

Othercurrentliabilities 0.02 0.01

Total 0.94 0.86

ASSETS

Non-current Assets

Tangibleassets 0.22 0.25

Pre-OperativeExpenses(refernoteno.12) 63.02 66.51

Long-termloansandadvances 149.80 149.80

Current Assets

Cash&bankbalances 130.97 128.72

Short-termloansandadvances 3.28 2.16

Other current assets 5.11 4.87

Total 352.40 352.31

Thisispre-OperatingperiodoftheJointVenturecompany.Alltheexpenditureincurredtillcommencementofcommercial

production is classified as ‘Mines Development & Pre-Operative Expenses’ pending capitalization under pre-operative

expenses.

91



`Lakhs2013-14 2012-13

29.12 ForeignCurrencyExposure(AmountinLakhs)i) Hedged -ForwardContractsforimports(USD) USD 8.77 -

Euro 0.19 3.33 TermLoan USD 79.32 23.68

i) NotHedged USD 6.84 3.33 Euro 7.02 1.77GBP 10.12 -

Creditors USD 11.1 8.11 Euro 1.52 1.91JPY 9.01 6.67GBP 0.3 0.30

Cash&BankBalance USD - 0.01 GBP(GBP330) - -

Euro - 0.01 RMB 0.03 0.03

JPY(JPY220) 0.14 -Kwacha 0.30 0.30

TermLoan USD 164.09 35.52 PCFCLOAN USD 4.27 5.13

EURO 8.64 3.43GBP 7.85 -

ForeignCurrencyLoanavailedunderBuyers'Credit USD - 203.63

29.13 EmployeeBenefits-AS15(Revised)

a) TheCompanyhasdeterminedtheliabilityforEmployeebenefitsasatMarch31,2014inaccordancewithrevisedAccountingStandard15issuedbyICAI-Employeedefinedbenefits.

b) FollowinginformationarebasedonreportofActuary.

DefinedbenefitplansasatMarch31,20142013-14 2012-13

Gratuity (Funded)

Leave Encashment (Unfunded)

Gratuity(Funded)

LeaveEncashment (Unfunded)

A Break-upofexpenses1) Current Service Cost 174.19 246.15 131.03 199.132) Interest cost 119.63 21.05 91.71 18.53) Expectedreturnonplanassets 126.52 - 95.09 -4) NetActuarial(gain)/lossrecongisedduringtheyear 106.52 (19.60) 139.58 (60.83)5) Totalexpense 273.82 247.60 267.23 156.80

B Actual return on plan assets1) Expectedreturnonplanassets 126.52 - 95.09 -2) Actuarialgain/(loss)onplanassets (22.84) - 21.28 -3) Actual return on plan assets 103.68 0.00 116.37 0.00

C Reconciliationofobligationandfairvalueofassets1) Presentvalueoftheobligation 1704.36 414.77 1488.05 328.182) Fairvalueofplanassets 1704.52 - 1488.53 -3) Fundedstatus[surplus/(deficit)] 0.16 (414.77) 0.48 (328.18)

D Change inpresent valueof theobligationduring the yearendedMarch31,20141) PresentvalueofobligationasatApril1,2013 1,488.05 328.18 1,188.28 291.002) Current Service Cost 174.19 246.15 131.03 199.133) Interest cost 119.63 21.05 91.71 18.494) Benefitspaid (161.19) (161.01) (83.83) (119.61)5) Actuarial(gain)/lossonplanassets 83.68 (19.60) 160.86 (60.83)6) PresentvalueofobligationasatMarch31,2014 1,704.36 414.77 1,488.05 328.18

92


`Lakhs2013-14 2012-13

E ChangeinAssetsduringtheyearendedMarch31,20141) FairvalueofplanassetsasatApril1,2013 1488.53 1188.692) Expectedreturnonplanassets 126.52 95.093) Contributionmade 273.5 267.34) Benefitspaid (161.19) (83.83)5) Actuarialgain/(loss)onplanassets (22.84) 21.286) FairvalueofplanassetsasatMarch31,2014 1,704.52 1,488.53

F Themajorcategoryofplanassetsasapercentageoftotalplan

Gratuity:80%(PY76%)investedwithCentralGovt/Stategovt/StateGovt.Securities/PublicsectorbondsFixedDepositwithPSUBanks

LeaveEncashment:Unfunded2013-14 2012-13

G ActuarialAssumptions1) Discount rate 8.50% 8.00%2) Expectedrateofreturnonplanassets 8.50% 8.00%3) Mortality IALM (2006-08)

ULTIMATELIC1994-96

4) Salaryescalation 6.00% 5.00%c) Gratuityisadministeredbyanapprovedgratuityfundtrustd) Amountrecognisedasanexpenseinrespectofdefinedbenefitsplanasunder:

1) ContributiontoGratuityFund 273.5 267.32) Gratuitypaiddirectly 39.97 21.813) Leaveencashment 247.6 156.79

561.07 445.90e) DefinedContributionplan:

ContributiontoDefinedContributionPlan,recognisedasexpensefortheyearasunder:1) Employer’scontributiontoGovernmentProvidentFund 718.13 612.512) Employer’scontributiontoSuperannuationFund 76.65 60.563) Farewellgifttoretiredemployees 1.28 2.124) Medicalinsurancepremiumtoretiredemployees 16.58 10.77

812.64 685.96

29.14 CapitalWork-In-ProgressatOCLBengalCementWorks/Medinipurincludesthefollowingexpenses/income

Salary&Wages 111.48 199.89 Rent 4.47 8.77 Rates&Taxes - 0.80 Insurance 17.21 41.57 Finance Charges 183.31 111.82 Others 260.28 105.71





93


Summary of Financial Information of Subsidiary CompaniesFORTHEFINANCIALYEAR2013-14

TheMinistryofCorporateAffairsvideitsCircularNo.2/2011dt.8thFebruary2011,hasgrantedgeneralexemptionunderSection212

(8)ofCompaniesAct,1956tocompaniesfromattachingtheaccountsofSubsidiaryCompanieswiththeAnnualReportoftheCompany.

However,companiesarerequiredtoprovidesummarisedfinancialinformationofthesubsidiaries.

Accordingly,OCLIndiaLimitedisprovidingasummaryoffinancialinformationofitssubsidiarycompaniesinlieuofattachingtheannual

accountsofitssubsidiarycompanieswiththeAnnualReportfortheyear2013-14.TheAnnualAccountsoftheSubsidiaryCompanies

areavailablewiththeCompanySecretary,OCLIndiaLimitedandareopenforinspectionbyanyshareholderattheRegisteredOffice

ofthecompanyduringworkingdays.ThecopyofAnnualAccountsshallalsobemadeavailabletoanyshareholderofOCLIndiaLimitedor

itssubsidiaryonrequestinwriting.

Thesummaryoffinancialinformationofsubsidiarycompaniesforthefinancialyear2013-14isasgivenbelow:

` LakhsSl.

No.

Particulars OCLGLOBALLTD. OCLCHINALTD. ODISHA

CEMENTLTD.Financial Year ending on # 31.03.2014 31.03.2014 31.03.2014 31.03.2014 31.03.2014Reporting Currency INR USD INR RMB INRExchange Rate (As on 31.03.2014) 60.49 - 9.82 - Exchange Rate (Average rate 2013-14) 61.05 - 9.93 -

1 Share Capital 1,347.88 28.30 2,441.12 404.29 5.00 2 ShareApplicationMoney - - 3 Reserves 4,234.70 68.77 2,266.68 132.82 (0.36)4 Liabilities 2,233.33 36.92 4,853.53 494.37 0.01 5 TotalLiabilities 7,815.91 134.00 9,561.33 1,031.48 4.65 6 Total Assets 7,815.91 134.00 9,561.33 1,031.48 4.65 7 Investments* 2,831.81 51.60 - - - 8 Turnover 12,743.86 208.75 9,764.95 983.83 9 ProfitBeforeTaxation 586.94 9.61 430.91 29.39 (0.41)

10 ProvisionforTaxation - - 37.07 3.73 (0.04)11 ProfitAfterTaxation 586.94 9.61 393.84 25.66 (0.36)12 ProposedDividend - - - - -

# FinancialyearofOCLChinaLtd.endson31.12.2013,however,tocoincidewiththefinancialyearofOCLIndiaLtd.theaccountshave

beendrawnandauditedupto31.03.2014

* InvestmentinOCLChinaLtd.`2,831.81Lacs

Note:

1 AssetsandLiabilitiesforBalanceSheetitemsofforeignsubsidiariesaretranslatedattheclosingrateason31.03.2014.

2 IncomeandExpenseitemsofforeignsubsidiariesaretranslatedattheaverageexchangerateduring2013-14.

3 ShareCapitalofForeignSubsidiariesistranslatedattheexchangerateexistingatthedateoftransaction.

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

www.ocl.in

1

NoticeOCL INDIA LIMITED

Regd. Office: Rajgangpur- 770 017 (District Sundargarh, Odisha State)

Tel. No.: (06624) 221212, 220121

Corporate Office: 17th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi-110001

Tel. No.: (91-11) 4363-1200 Fax: (91-11) 2373-1333

Website: www.ocl.in/www.oclindialtd.in

CIN No.: L26942OR1949PLC000185

E-mail: [email protected]

Notice is hereby given that Sixty Forth Annual General Meeting

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

Rajgangpur - 770017 (District Sundargarh, Odisha State) on

Saturday, the 13th day of September, 2014 at 4.30 p.m. to

transact the following business:

ORDINARY BUSINESS:

(1) To consider and adopt:

(a) theauditedfinancialstatementsoftheCompanyfor

the Financial Year ended March 31, 2014, the reports

oftheBoardofDirectors’andAuditors’thereon;and

(b) the audited consolidated financial statements of the

CompanyfortheFinancialYearendedMarch31,2014

(2) Todeclaredividendonequitysharesandtoconsiderand,

ifthoughtfit,topass,withorwithoutmodification(s)the

followingresolutionasanOrdinaryResolution:

“RESOLVED THATpursuanttotherecommendationmade

bytheBoardofDirectorsoftheCompany,adividendatthe

rateof`4/-(200%)perpaidupequitysharetotheequity

shareholdersoftheCompanywhosenamesappearinthe

RegisterofMembersasonSeptember13,2014beandis

herebydeclaredoutofthecurrentprofitsoftheCompany

fortheFinancialYearendedMarch31,2014.

RESOLVED FURTHER THAT dividend be paid by posting

the dividendwarrants/through ECS/NECSwithin 30 days

hereoftoalltheshareholderswhoareentitledtoreceive

thepayment.”

(3) ToappointaDirectorinplaceofShriP.K.Khaitanwhois

retiringbyrotationandbeingeligibleoffershimselfforre-

appointment.

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

regardtoconsiderand,ifthoughfit,topasswithorwithout

modification(s) the following resolution as an Ordinary

Resolution:

“RESOLVED THAT pursuant to the provisions of

section 139 and other applicable provisions, if

any, of the Companies Act, 2013 and the rules

framed thereunder, as amended from time to time,

M/s. V. Sankar Aiyar & Co., Chartered Accountants,(Firm

registration No. 109208W) New Delhi, who have offered

themselvesforre-appointmentbeandisherebyreappointed

asAuditorsoftheCompanytoholdofficefromconclusionof

thisAnnualGeneralMeeting(AGM)tilltheconclusionofthe

sixtyseventhAGMoftheCompanytobeheldintheyear

2017(subject toratificationof theirappointmentatevery

AGM),atsuchremunerationplusservicetax,outofpocket

and travelling expenses etc., as may be mutually agreed

between theBoardofDirectors of theCompanyand the

Auditors.”

SPECIAL BUSINESS:

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


Resolution:

“RESOLVED THAT pursuant to the provisions of Section

149,152 read with Schedule IV and all other applicable

provisionsoftheCompaniesAct,2013andtheCompanies

(AppointmentandQualificationofDirectors)Rules,2014

(including any statutory modification(s) or re-enactment

thereof for thetimebeing in force) Shri D.N.Davar(Din

No.:00002008), who was appointed as a Director liable

to retire by rotation be and is hereby appointed as an

IndependentDirectorofthecompanytoholdofficefora

termoffiveyearswitheffectfromApril1,2014toMarch

31,2019inrespectofwhomtheCompanyhasreceiveda

noticeinwritingunderSection160oftheCompaniesAct,

2013 from a member proposing his candidature for the

officeofDirector”



Resolution:




2



thereofforthetimebeinginforce)Dr.SheoRajJain(Din

No.: 00364293), whowas appointed as a Director liable







officeofDirector”



Resolution:






thereof for the time being in force) Dr. R.C.Vaish (Din

No.:01068196) , whowas appointed as a Director liable







officeofDirector”



Resolution:




(Appointment and Qualification of Directors) Rules, 2014


thereofforthetimebeinginforce)ShriV.P.Sood(DinNo.:

00092593),whowasappointedasaDirectorliabletoretire

byrotationbeandisherebyappointedasanIndependent

Directorofthecompanytoholdofficeforatermoffiveyears

witheffectfromApril1,2014toMarch31,2019inrespectof

whomtheCompanyhasreceivedanoticeinwritingunder

Section 160 of the Companies Act, 2013 from amember

proposinghiscandidaturefortheofficeofDirector”

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

modification(s), the following resolution as an Ordinary

Resolution:


152 of the Companies Act 2013 read with Schedule V,

theapprovalof theCompanybeand isherebyaccorded

to vary the termsof appointmentof ShriGauravDalmia

(DIN:00009639)asExecutiveViceChairmanandmanaging

Director of the Company, by making his office liable to

retirebyrotation.

RESOLVED FURTHER THATallothertermsandconditions

ofappointmentand remunerationofShriGauravDalmia

asExecutiveViceChairmanandManagingDirectorofthe

Companyshallremainunchanged.”


modification(s) the following resolution as an Special

Resolution:

“RESOLVED THATinsupersessionoftheearlierresolution

passed at the 56th Annual General Meeting of the

members of the Company held on September 09, 2006,

andpursuanttotheprovisionsofSection180(1)(c)ofthe

Companies Act, 2013 (corresponding to Section 293(1)

(d)of theCompaniesAct, 1956) andall other applicable

provisions,ifany,(includinganyamendmenttheretoorre-

enactmentthereof),consentbeandisherebyaccordedto

theBoardofDirectorsoftheCompany(whichexpression

shallincludeanycommitteeoftheBoarddulyconstituted/

tobe constituted) toborrow, fromtime totime, as they

maythinkfit,anysumorsumsofmoneywhich,together

withthemoneysalreadyborrowedbytheCompany(apart

from temporary loans obtained from the Company’s

bankers in ordinary course of business) may exceed the

aggregateof thepaid-up capital of theCompany and its

freereserves,thatistosay,reservesnotsetapartforany

specificpurpose, provided that aggregateof themoneys

borrowedandtobeborrowedandoutstandingatanytime

shall not exceed the aggregate of the paid up capital of

theCompanyand its freereservesbymorethan` 1,400

Crores.”

(11) To consider and if thought it, to pass, with or without

modification(s), the following resolution as an Ordinary

Resolution:

“RESOLVED THATpursuanttotheprovisionsofSection148

andallotherapplicableprovisionsoftheCompaniesAct,

2013andtheCompanies(AuditandAuditors)Rules,2014


thereof, for the time being in force), the Cost Auditors

appointed by the Board ofDirectors of the Company, to

conducttheauditofthecostrecordsoftheCompanyfor

the Financial Year ending March 31, 2015, be paid the

remunerationof`1,00,000/-plustravelandotherout-of-

3

pocketexpensesincurredforthepurposeofcostaudit.

RESOLVED FURTHER THAT the Board of Directors of the

Companybeandisherebyauthorizedtodoallactsandtake

allsuchstepsasmaybenecessary,properorexpedientto

giveeffecttothisresolution.”

ByOrderoftheBoardofDirectors

forOCL INDIA LIMITED

Place:NewDelhi (D.D. Atal)

Dated:July24,2014 WholeTimeDirector&CEO

NOTES:

(1) TherelativeExplanatoryStatementpursuanttosection102

oftheCompaniesAct,2013(Act)inrespectofthebusiness

underItemNos.5to11oftheNotice,isannexedhereto.

The relevant details as required under clause 49 of the

ListingAgreementsenteredintowiththeStockExchanges,

of persons seeking appointment/ re-appointment as

Directors under ItemNos. 5 to 8 of theNotice, are also

annexed.

(2) A Member entitled to attend and vote at the Annual

GeneralMeeting (AGM) is entitled toappointaproxy to

attendandvoteinsteadofhimselfandtheproxyneednot

beaMemberoftheCompany.Theinstrumentappointing

theproxy,inordertobeeffective,mustbedepositedatthe

Company’sRegisteredOffice,dulycompletedandsigned,

not less than FORTY-EIGHT HOURS before the meeting.

Proxies submitted on behalf of limited companies,

societies, etc., must be supported by appropriate

resolutions/authority, as applicable. A person can act as

proxyonbehalfofMembersnotexceedingfifty(50)and

holding in theaggregatenotmore than10%of the total

sharecapitaloftheCompany.Incaseaproxyisproposed

tobeappointedbyaMemberholdingmorethan10%of

the total share capital of the Company carrying voting

rights,thensuchproxyshallnotactasaproxyforanyother

person or shareholder.

(3) Corporate members are requested to send a duly

certified copy of the Board Resolution authorizing their

representativestoattendandvoteatthemeeting.

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

attendingthemeeting.

(5) The Register of Members will remain closed from

September 08, 2014 to September 13, 2014 (both days

inclusive).

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

Kolkata-700019aretheRegistrars&ShareTransferAgents

oftheCompanytohandlesharetransfersbothinphysical

andelectronicsegmentsandothersharesrelatedmatters.

The shareholders are requested to correspond with the

Registrars at the above address.

(7) YouarerequestedtoquoteFolionumberandincaseyour

shares are dematerialized quote your Client ID Number

andyourDP IDNumber inall your correspondencewith

the Company/Registrars for facilitating quick disposal of

theletters.

(8) Shareholdersholdingsharesinelectronicformarerequiredto

filetheirnominationformswiththeirDepositoryparticipants.

Shareholdersholdingsharesinphysicalformcansubmittheir

nomination forms to the Registrars at Kolkata. Nomination

formscanbeobtainedfromtheCompanyoritsRegistrarsat

Kolkata.

(9) Pursuant to Companies Act, 2013 and Rulesmade there

under, shareholders holding shares in physical mode/

electronic mode are requested to please register their

e-mail address and changes therein from time to time

with the company/the Registrars and Share Transfer

AgentoftheCompany,C.B.ManagementServicesPrivate

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

concerneddepositoryparticipantandalsotomentiontheir

e-mail address in all correspondence with the company

so as to expedite the response and also to enable the

Company send the notices of Annual General Meeting,

Annual Reports and other communications/documents

electronicallythroughe-mail.

(10) IntermsoftheSEBICircularNo.CIR/MRD/DP/10/2013dated

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

(ReserveBankofIndia)approvedelectronicmodeofpayment

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

(NationalECS)],NEFT,etc.formakingcashpaymentstothe

investors.

Accordingly, to enable the Company comply with the

abovecircular,youareadvisedtosendyourcorrectBank

account particulars (includingMICRNumber., IFSC Code,

AccountType,etc.) toyourDepositoryParticipant(ifyou

areholdingsharesindematform)ortotheRegistrarand

ShareTransferAgentalongwithacancelledcheque(ifyou

areholdingsharesinphysicalform).

Intheabsenceofaboveparticulars,theCompanywilluse

physical payment instruments formaking cashpayments

andshallprintyouravailablebankaccountdetailsonsuch

paymentinstruments.

(11) The securities and Exchange Board of India (SEBI) has

mandatedthesubmissionofPermanentAccountNumber

4

(PAN) by every participant in security market.Members

holdingsharesinelectronicformare,thereforerequested

to submit the PAN to their Depository Participants

with whom they are maintaining their demat accounts.

Membersholdingsharesinphysicalformcansubmittheir

PANdetailstotheCompany.

(12) TheShareholders,whoarestillholdingshares inphysical

form are requested to take immediate action to demat

theirsharestoavaileasyliquidity.

(13) Thisnoticeisbeingsenttoallthememberswhosename

appearintheRegisterofMembers/RecordofDepositories

asonAugust01,2014.

(14) Allrelevantdocuments/papersareopenforinspectionat

theRegisteredOffice/CorporateOfficeoftheCompanyon

allworkingdays,exceptholidays,between11.00A.M.to

1.00P.M.uptothedateofAnnualGeneralMeeting.

(15) In compliance with the provisions of section 108 of the

CompaniesAct,2013readwithRulesframedthereunder,

andtherevisedClause35BoftheListingAgreement,the

Membersareprovidedwiththefacilitytocasttheirvote

electronically through the e-voting services provided by

NSDL,onallresolutionssetforthinthisNotice.

(16) Theinstructionsfore-votingareasunder:

A. IncaseaMemberreceivesane-mailfromNSDL(for

Members whose e-mail addresses are registered with

theCompany/Depositories):

i. Openthee-mailandalsoopenPDFfilenamely

“OCLe-voting.pdf”withyourClient IDorFolio

No.aspassword.ThesaidPDFfilecontainsyour

userIDandpasswordfore-voting.Pleasenote

thatthepasswordisaninitialpassword.

ii. Open the internet browser and type the

followingURL:https://www.evoting.nsdl.com.

iii. Click on Shareholder – Login.

iv. If you are already registered with NSDL for

e-votingthenyoucanuseyourexistinguserID

and password.

v. If you are logging in for the first time, please

enter the user ID and password provided in

thePDFfileattachedwith thee-mail as initial

password.

vi. The Password Change Menu will appear on

yourscreen.Changetoanewpasswordofyour

choice, making sure that it contains a minimum

of 8 digits or characters or a combination of

both. Please take utmost care to keep your

passwordconfidential.

vii. Once the e-voting home page opens, click on

e-voting>ActiveVotingCycles.

viii. Select“EVEN”(E-VotingEventNumber)ofOCL

IndiaLimited.Nowyouarereadyfore-votingas

Cast Vote page opens.

ix. Castyourvotebyselectingappropriateoption

andclickon“Submit”andalso“Confirm”when

prompted.

x. Upon confirmation, the message “Vote cast

successfully”willbedisplayed.

xi. Once the vote on the resolution is cast, the

Member shall not be allowed to change it

subsequently.

xii. Institutional shareholders (i.e. other than

individuals,HUF,NRI,etc.)arerequiredtosend

scannedcopy(PDF/JPGformat)oftherelevant

BoardResolution/Authorityletter,etc.,together

with attested specimen signature of the duly

authorized signatory(ies) who are authorized

to vote, to the Scrutinizer through e-mail to

mailto:[email protected] with a

[email protected].

xiii. In case of any queries, you may refer

the Frequently Asked Questions (FAQs) -

Shareholders and e-voting user manual -

Shareholders, available at the downloads

sectionofwww.evoting.nsdl.com.

B. IncaseaMemberreceivesphysicalcopyoftheNotice

ofAGM(forMemberswhoseemailaddressesarenot

registeredwiththeCompany/Depositories):

i. Initial password is provided in the enclosed

ballot form: EVEN (E-Voting Event Number),

user ID and password.

ii. PleasefollowallstepsfromSl.No.(ii)toSl.No.

(xiii)above,tocastvote.

C. OtherInstructions:

i. The e-voting period commences on Sunday,

September 07, 2014 (9.00 a.m. IST) and ends

onTuesday,September09,2014(6.00p.m.IST).

During this period,Membersof theCompany,

holding shares either in physical form or in

dematerialized form, as on August 01, 2014,

maycasttheirvoteelectronically.Thee-voting

5

module shall be disabled by NSDL for voting

thereafter. Once the vote on a resolution is

castbytheMember,heshallnotbeallowedto

changeitsubsequently.

ii. The voting rights of Members shall be in

proportiontotheirsharesofthepaidupequity

sharecapitaloftheCompanyasonAugust01,

2014.

iii. Mr. Mohan Ram Goenka, Partner, MR &

Associates, Company Secretaries, has been

appointed as the Scrutinizer to scrutinize the

e-voting process in a fair and transparent

manner.

iv. The Scrutinizer shall, within a period not

exceeding three working days from the

conclusion of the e-voting period, unlock the

votesinthepresenceofatleasttwowitnesses

not in the employment of the Company and

make a Scrutinizer’s Report of the votes cast

in favour or against, if any, forthwith to the

ChairmanoftheCompany.

v. The results declared along with the

Scrutinizer’s Report shall be placed on the

Company’s website www.oclindialtd.in

and on the website of NSDL www.evoting.

nsdl.com within two days of the passing

of the resolutions at the Sixty Forth AGM

of the Company on September 13, 2014

and communicated to the BSE Limited and

National Stock Exchange of India Limited,

wherethesharesoftheCompanyarelisted.

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

agreement on Corporate Governance, particulars of the

Director who is eligible to be re-appointed/appointed are

givenbelow:

Shri Pradip K. Khaitan

Shri Pradip K. Khaitan has been on the Board of the

Company since January 15, 1968. He is a renowned

lawyer and a senior partner in M/s Khaitan &

Company, Kolkata. He has varied and rich experience

of several years in commercial andcorporate laws, tax

laws, arbitration, foreign collaboration, merger and

acquisitions and restructuring and demergers besides

sharp acumen in other business activities. He is a

DirectorontheBoardofseveralrenownedandreputed

companies and also a Trustee of reputed educational

and charitable institutions.

Hisdirectorshipsandcommitteemembershipsintheother

bodiescorporateareasfollows:

S. No.

Directorship in other companies

Membership in committees of other companies

1. Dalmia Bharat Limited Member-AuditCommittee,

2. ElectrosteelCastingsLimited

Member-AuditCommittee

Member - Stakeholders RelationshipCommittee

3. GraphiteIndiaLimited NominationandRemunerationCommittee-Chairman


4. IndiaGlycolsLimited Member-AuditCommittee

ShriPradipKumarKhaitanholdsnilshareintheCompany.

EXPLANATORY STATEMENT

Item 5 to 8:

PursuanttoSection102oftheCompaniesAct,2013andasper

the requirementofClauseNo.49of the listingagreementon

Corporate Governance, particulars of the Directors who are

eligibletobere-appointed/appointedaregivenbelow:

TheCompanyhad,pursuanttotheprovisionsofclause49ofthe

ListingAgreementsenteredwiththeStockExchanges,appointed

ShriD.N.Davar,Dr.SheoRajJain,Dr.R.C.VaishandShriV.P.

Sood,asIndependentDirectorsatvarioustimes,incompliance

withtherequirementsoftheclause.

PursuanttotheprovisionsofSection149oftheCompaniesAct,

2013,every listedPublicCompany is required tohaveat least

one-thirdoftotalnumberofdirectorsasIndependentDirectors,

whoarenotliabletoretirebyrotation.

Shri D. N. Davar, Dr. Sheo Raj Jain, Dr. R. C. Vaish and Shri

V. P. Sood, non-executive directors of the Company, have

given a declaration to the Board that theymeet the criteria

of independence as provided under section 149(6) of the

Companies Act, 2013. In the opinion of the Board, each of

these directors fulfill the conditions specified in the Act and

theRulesframedthereunderforappointmentasIndependent

Directorandtheyareindependentofthemanagement.

TheNominationandRemunerationCommitteehasrecommended

the appointment of these directors as Independent Directors

fromApril01,2014uptoMarch31,2019.

In compliance with the provisions of section 149 read with

Schedule IV of the Companies Act, 2013, the appointment of

these directors as Independent Directors is now being placed

beforetheMembersfortheirapproval.

6

AbriefprofileoftheIndependentDirectorstobeappointedis

givenbelow:

Dharmender Nath Davar

Heisaneminentprofessional,aretiredbankerandex-chairman

of“TheIndustrialFinanceCorporationofIndiaLimited”.Hehas

vast,variedandwideexperienceinFinance,Banking,Corporate

Laws, Commercial Activities and management of companies.

HehadbeenaparttimeconsultanttotheWorldBank,United

Nations IndustrialDevelopmentOrganisationforseveralyears.

Heholdsdirectorshipinthefollowingcompanies:

S. No.


Membership in committees

1. AdayarGateHotelLimited N.A.2. AnsalProperties&

InfrasturctureLimitedChairman-AuditCommittee

3. Cimmco Limited Member–AuditCommittee4. HEGLimited Chairman-AuditCommittee5. HeroFincopLimited Chairman-AuditCommittee6. MansinghHotels&resorts

LimitedN.A.

7. LandmarkPropertyDevelopment Co. Limited

N.A.

8. Maral Overseas Limited Member-AuditCommittee,

Member -Stakeholders RelationshipCommittee

9. RSWMLimited Member-AuditCommittee


10. Sandhar Technologies Limited

N.A.

11. Titagarh Marine Limited N.A.12. TitagarhWagonsLimited Chairman-AuditCommittee

ShriD.N.DavarholdsNilsharesintheCompany.

Sheo Raj Jain

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

He is the former Chairman of India’s largest steel producing

company,i.e.,SteelAuthorityofIndia.HewasalsoChairmanof

CoalIndiaLimitedandHeavyEngineeringCorporationLimited.

HewasManagingDirectorofBhillaiSteelPlant.Hehasvariety

ofexperienceinthebusinessarenawithspecialty insteeland

heavy industry. He holds directorship in the following public

limitedcompanies:

S. No.


Membership in committees

1. UniversalCablesLimited Chairman-AuditCommittee

Member–RemunerationCommittee

Dr.S.R.JainholdsNilsharesintheCompany

Dr. Ramesh C. Vaish

HeisaneminentCharteredAccountant.HeJoinedtheBoardof

theCompanyonJanuary21,2005.

His directorships and committee memberships in the other

bodiescorporateareasfollows:

S. No.


Membership in committees of other companies

1. AnsalProperties&InfrastructureLimited

Member-AuditCommittee

2. GIPowerCorporationLimited

N.A.

3. JaiprakashPowerVenturesLimited

N.A.

4. JaypeeInfratechLimited N.A.5. OmaxAutosLimited Chairman–AuditCommittee

Member-RemunerationCommittee

6. Roto Pumps Limited Member–AuditCommittee

Dr.R.C.VaishholdsNilsharesintheCompany.

Shri V. P. Sood

ShriV.P.SoodjoinedtheCompanyon8thJune1963andhas48

yearsofexperience.Hehasrichandvariedexperience.Heholds

Masters Degree in Social work.

ShriV.P.SoodwasappointedtwotimesasaWholeTimeDirector

oftheCompanywitheffectfromApril1,2003foraperiodoffive

(5)yearsandre-appointedagainasaWholeTimeDirectorfor

aperiodoftwo(2)yearsfromApril1,2008tillMarch31,2010.

Hedoesnotholddirectorshipandcommitteemembershipinany

otherbodycorporate.Heholds25,700sharesintheCompany.

Save and except Shri D.N. Davar, Dr. S.R. Jain, Dr. R.C. Vaish

andShriV.P.Sood,noneoftheKeyManagerialPersons/their

relatives/DirectorsoftheCompanyarein,inanywayconcerned

orinterestedfinanciallyorotherwiseintheResolutionsetoutat

Itemno.5to8oftheNotice.

Item No. 9:

Section 152 of the Companies Act, 2013 enjoins upon

the Company to ensure that two thirds of total number of

Directors (3 directors in case of our Company excluding

independentDirectors)shallbethosepersonwhoseperiodof

officeshallliabletodeterminationbyretirementofDirectors

byrotation.

Keeping inviewoftheprovisionsoftheCompaniesAct,2013,

and subject to approval of the Members of the Company at

theensuingAnnualGeneralMeeting,theBoardofDirectorsat

theirMeetingheldonJuly24,2014madeavariationinterms

ofappointmentofShriGauravDalmia,ExecutiveViceChairman

7

and Managing Director, it is proposed that he shall now hold

suchofficeasDirectorliabletoretirebyrotation.

Shri Gaurav Dalmia holds a Bachelor Degree in Computer

ScienceandMBADegreewithBetaGammaSigmaHonorsfrom

ColumbiaUniversity,USA.

SaveandexceptShriGauravDalmia,noneoftheKeyManagerial

Persons/theirrelatives/DirectorsoftheCompanyisin,inany

way concerned or interested financially or otherwise in the

ResolutionsetoutatItemno.9oftheNotice.Theotherterms

andConditionsofhisappointmentincludingremunerationshall

remain unchanged.

TheBoardcommends theOrdinaryResolutionsetoutat Item

No.9oftheNoticeforapprovalbytheshareholders.

Item No. 10:

Pursuant to Section 180(1)(c) of the Companies Act, 2013

providesthattheboardofDirectorsofthecompanyshallonly

with the consent of the members by a Special Resolution,

borrow money where the money to be borrowed, together

withthemoneyalreadyborrowedbytheCompanywillexceed

aggregate to itspaid-up share capital and free reserves, apart

fromtemporaryloansobtainedfromtheCompany’sbankersin

theordinarycourseofthebusiness(earlier ithadbeenpassed

as an Ordinary Resolution under section 293(1)(d) of the

CompaniesAct,1956).

The shareholders at the Annual General Meeting held on

September09,2006,hadauthorizedtheBoardofDirectorsof

theCompanytoborrowmoneysupto` 1000 crores over and

abovethepaidupcapitalandfreereservesoftheCompanyfor

thetimebeing.

Keeping in view the requirement to finance various in future

expansionand/ormodernizationprojectsoftheCompany, it is

proposed to increase the limit from` 1000 to ` 1,400 crores

andaccordinglyapprovalofthemembersissoughtbywayofa

SpecialresolutionunderSection180(1)(c)andotherapplicable

provisions of the Companies Act, 2013. The shareholders are

requestedtoaccordtheirconsentfortheincrease.

None of the Director and key managerial Personnel of the

Company and their respective relatives is concerned or

interested,financiallyorotherwise,inpassingoftheresolution

set out at Item No.10.

The Board commends the Resolution for approval of the

membersasSpecialResolution.

Item No. 11:

TheBoard,ontherecommendationoftheAuditCommittee,

has approved the appointment and remuneration of the

Cost AuditorsM/s R. J. Goel & Co., Cost Accountants, 31,

CommunityCentre,AshokVihar,Phase-I,Delhi–110052,to

conducttheauditofthecostaccountsrelatingto“Cement”

maintained by the Company for the Financial Year ending

March 31, 2015.

In accordance with the provisions of Section 148 of the Act

readwiththeCompanies(AuditandAuditors)Rules,2014,the

remunerationpayabletotheCostAuditorshastoberatifiedby

theshareholdersoftheCompany.

Accordingly, consent of themembers is sought by way of an

OrdinaryResolutionassetoutatItemNo.11oftheNoticefor

ratificationoftheremunerationpayabletotheCostAuditorsfor

the Financial Year ending March 31, 2015.

None of the Directors / Key Managerial Personnel of the

Company / their relatives are, in any way, concerned or

interested,financiallyorotherwise,intheresolutionsetoutat

ItemNo.11oftheNotice.

TheBoardcommends theOrdinaryResolutionsetoutat Item

No.11oftheNoticeforapprovalbytheshareholders.

ByOrderoftheBoardofDirectors

forOCL INDIA LIMITED

Place:NewDelhi (D.D. Atal)

Dated:July24,2014 WholeTimeDirector&CEO

Registered Office:

OCL India Limited

AT/P.ORajgangpur770017

District Sundargarh

Odisha, India

Corporate Office:

OCL India Limited

17th Floor, Narain Manzil, 23, Barakhamba Road

New Delhi- 110 001

OCL INDIA LIMITEDRegd. Office: Rajgangpur- 770 017, District Sundargarh, Odisha State

CIN No.: L26942OR1949PLC000185, Tel. No.: (06624) 221212, 220121

Website: www.ocl.in/www.oclindialtd.in, E-mail: [email protected]

ATTENDANCE SLIPVenue of the meeting : Company’s Rest House at Rajgangpur – 770017

(District Sundargarh, Odisha State)

Date & Time : September 13, 2014 at 4.30 p.m

PLEASE FILL ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING VENUE

Name

Address

DP Id*

Client Id*

Folio No.

No. of shares held

I certify that I am the registered shareholder/proxy for the registered shareholder of the Company.

I hereby record my presence at the 64th Annual General Meeting of the Company held on September 13, 2014 at 4.30 p.m. at

Company’s Rest House at Rajgangpur – 770017 (District Sundargarh, Odisha State)

_______________________

Signature of Member/Proxy

*Applicable for shareholders holding shares in electronic form

Note:

1. Electronic copy of the Annual Report for 2014 and Notice of the Annual General Meeting along with Attendance Slip and Proxy

Form is being sent to all the members whose email address is registered with the Company/Depositary Participant unless any

member has requested for a hard copy of the same. Shareholders receiving electronic copy and attending the Annual General

Meeting can print copy of this Attendance Slip.

2. Physical copy of the Annual Report for 2014 and Notice of the Annual General Meeting along with Attendance Slip and Proxy

Form is sent in the permitted mode(s) to all members whose email id is not registered or have requested for a hard copy.

OCL INDIA LIMITEDRegd. Office: Rajgangpur- 770 017, District Sundargarh, Odisha State

CIN No.: L26942OR1949PLC000185, Tel. No.: (06624) 221212, 220121

Website: www.ocl.in/www.oclindialtd.in, E-mail: [email protected]

Form No. MGT-11FORM OF PROXY

Pursuant to Section105 (6) of the Companies Act, 2013 and Rule19 (3) of the Companies (Management and Administration)

Rules, 2014.

Venue of the meeting : Company’s Rest House at Rajgangpur – 770017

(District Sundargarh, Odisha State)

Date & Time : September 13, 2014 at 4.30 p.m.

Name

Registered Address

Email ID

DP ID*

Client ID*

Folio No

*Applicable for investors holding shares in Electronic form.

I/We, being the member(s) of ____________shares of the above named Company, hereby appoint:

1. Name :

Address :

E-mail Id :

Signature : ____________, or failing him/ her

2. Name :

Address :

E-mail Id :

Signature : _____________, or failing him/ her

3. Name :

Address :

E-mail Id :

Signature :

as my/our Proxy to attend vote (on a Poll) (for me/us and on my/ our behalf at the 64th Annual General Meeting of the Company to

be held on Saturday, September 13, 2014 at 4:30 p.m. at Company’s Rest House at Rajgangpur – 770017 (District Sundargarh, Odisha

State) and any adjournment thereof in respect of such resolutions as are indicated below;

Resolution No.

Description of Resolution Optional**

For Against

1 Adoption of financial Statement for the year ended 31st March, 2014

2 Declaration of Dividend

3 Re-appointment of Shri P K Khaitan, Director who retires by rotation

4 Appointment of V. Shankar & Aiyar, Chartered Accountants as Statutory Auditors of the Company

5 Appointment of Shri D.N.Davar as an Independent Director and to hold office for a term of five years with effect from April 1, 2014 to March 31, 2019.

6 Appointment of Dr. Sheo Raj Jain as an Independent Director and to hold office for a term of five years with effect from April 1, 2014 to March 31, 2019.

7 Appointment of Dr. R.C.Vaish as an Independent Director and to hold office for a term of five years with effect from April 1, 2014 to March 31, 2019.

8 Appointment of Shri V.P.Sood as an Independent Director and to hold office for a term of five years with effect from April 1, 2014 to March 31, 2019.

9 Approval for variation in terms of appointment of Shri Gaurav Dalmia, Executive Vice Chairman and Managing Director

10 Authorization to Board of Director for borrowing to an amount not exceeding ` 1,400 Crores.

11 Ratification of remuneration of Rs.1,00,000/- plus applicable taxes and out of pocket expenses payable to M/s. R. J. Goel & Co., Cost Accountants as Cost Auditors for the Financial year 2014-15.

**This is optional. Please put a tick mark (√) in the appropriate column against the resolutions indicated in the box. If a member leaves

the “For” or “Against” column blank against any or all the Resolutions, the proxy will be entitled to vote in the manner he/she thinks

appropriate. If a member wishes to abstain from voting on a particular resolution, he/she should write “Abstain” across the boxes

against the Resolution.

Signed this ___________________ Day of _______ 20_______

Signature(s) of Member(s)

Signature of Proxy Holder(s)

Notes:

1. The Proxy to be effective should be deposited at the Registered office of the company not less than FORTY EIGHT HOURS before

the commencement of the Meeting.

2. A Proxy need not be a member of the Company.

3. In the case of joint holders, the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the

exclusion of the vote of the other joint holders. Seniority shall be determined by the order in which the names stand in the

Register of Members.

4. The form of Proxy confers authority to demand or join in demanding a poll.

5. The submission by a member of this form of proxy will not preclude such member from attending in person and voting at the meeting.

6. In case a member wishes his/her votes to be used differently, he/she should indicate the number of shares under the columns

“For” or “Against” as appropriate.

Affix One Rupee

Revenue Stamp