Annual Report 2010 11

PRAKASH INDUSTRIES LIMITED
BOARD OF DIRECTORS
ShriV.P.Agarwal ShriVikramAgarwal Dr.S.L.Keswani ShriK.C.Mehra Dr.RamK.Vepa Shri Manish Bahl ShriPiyooshGoyal ShriG.L.Mohta ShriVipulAgarwal
Chairman & Managing Director Joint Managing Director
Whole time Director Whole time Director
COMPANY SECRETARY
Shri ManojAgarwal
STATUTORY AUDITORS
Chaturvedi&Partners Chartered Accountants
BANKER
Corporation Bank Kotak Mahindra Bank
REGISTERED OFFICE
15 Km. Stone, Delhi Road, Hissar125044(Haryana)
CORPORATE OFFICE
SRIVAN Bijwasan, NewDelhi110061
WORKS
Champa(Chhattisgarh) Chotia(Chhattisgarh) Raipur(Chhattisgarh) Kashipur(Uttarakhand) Koira,Distt.Koenjhar(Orissa) Muppandal(TamilNadu)
WEBSITE
www.prakash.com

NOTICE
th NOTICEisherebygiventhatthe30 AnnualGeneralMeetingoftheMembersof PrakashIndustriesLimitedwillbeheldonThursday,the29thSeptember,2011at 12.30p.m.attheregisteredofficeoftheCompanyat15Km.Stone,DelhiRoad, Hissar125044totransactthefollowingbusiness:
Category 'B' Thefollowingperquisiteswillnotbeincludedinthecomputationoftheceilingon remunerationasperPara2ofPartIIofSection IIofScheduleXIIIofthe CompaniesAct,1956. i) Company'scontributiontowardsProvidentFundAsperrulesofthe Companybutnotexceeding12%ofthesalaryaslaiddownunderthe IncomeTaxRules,1962. GratuityInaccordancewiththeprovisionsofthePaymentofGratuity Actbutshallnotexceedhalfmonth'ssalaryforeachcompletedyearof service. LeaveonfullpayandallowancesasperrulesoftheCompany.Leave accumulatedbutnotavailedmaybeallowedtobeencashedasperrules oftheCompany.
ORDINARY BUSINESS 1. Toreceive,considerandadopttheAuditedBalanceSheetoftheCompanyasat 31st March,2011andProfitandLossAccountfortheyearendedonthatdate togetherwiththeReportsofDirectorsandAuditorsthereon. 2. Todeclaredividendonequityshares. 3. ToappointaDirectorinplaceofShriManishBahl,whoretiresbyrotationand beingeligible,offershimselfforreappointment. 4. ToappointaDirectorinplaceofShriPiyooshGoyal,whoretiresbyrotationand beingeligible,offershimselfforreappointment. 5. ToappointAuditorsandfixtheirremuneration.The termofappointmentof M/sChaturvedi&Partners,CharteredAccountants(RegistrationNo.307068E) expireattheconclusionofthisgeneralmeetingandbeingeligibleofferthemselves forreappointmenttoholdofficefromtheconclusionofthisAnnualGeneralMeeting tilltheconclusionofnextAnnualGeneralMeeting. SPECIAL BUSINESS 6. Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowing resolutionasa SPECIAL RESOLUTION: "RESOLVEDTHATpursuanttotheprovisionsofSection198,267,269,309, 310,311,317andallotherapplicableprovisions,ifany,oftheCompaniesAct, 1956,(includinganystatutorymodificationorreenactmentthereof,forthetime beinginforce),andconditionsstipulatedinscheduleXIIIofthesaidAct,Shri V.P.AgarwalbeandisherebyreappointedasChairmanandManagingDirector oftheCompanyforaperiodofthreeyearswitheffectfrom1stApril2011to31st March,2014subjecttotheapprovalofshareholdersandotherappropriate authorities,ifrequired,onthefollowingtermsandconditions: 1 2 Salary:Rs.15,00,000/p.m. (inthegradeofRs.15,00,0003,00,00021,00,000) Commission:Paymentofasumnotexceeding1%ofthenetprofitofthe Companyforthefinancialyearcalculatedinthemannerlaiddownin Sections349and350oftheCompaniesAct,1956. Perquisites:InadditiontotheaforesaidSalarythefollowingperquisites wouldbeallowed.
ii)
iii)
Category 'C' i) ii) iii) FreeuseofCompany'sCarwithdriverforCompany'sbusiness. Freemobileandtelephonefacility.Personallongdistancecallsshallbe billedbytheCompany. Reimbursementofallentertainmentandtravelingexpensesactually incurredbytheManagingDirectorforthebusinessoftheCompany.
Providedthatthetotalremunerationshallnotexceed5%ofthenetprofitofthe Company. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeand isherebyauthorizedtoacceptanymodification(s)inthetermsandconditionsof theremunerationinsuchmannerasmaybesuggestedbyanyauthorityand acceptabletoShriV.P.Agarwal. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeand isherebyauthorizedtoenterintonecessaryagreementonbehalfoftheCompany withShriV.P.Agarwal,ChairmanandManagingDirectoroftheCompanyon thetermsandconditionsasmentionedhereinaboveoranymodificationsthereof asmaybeagreedtobytheBoardofDirectorsandacceptabletoShriV.P. Agarwal. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeand isherebyauthorisedtotakesuchstepsasmaybenecessaryanddesirableto giveeffecttothisresolution." 7. Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowing resolutionasa SPECIAL RESOLUTION: "RESOLVEDTHATpursuanttotheprovisionsofSections198,267,269,309, 310andallotherapplicableprovisions,ifany,oftheCompaniesAct,1956 (includinganystatutorymodificationsorreenactmentthereof,forthetimebeing inforce)theconditionsstipulatedinscheduleXIIIofthesaidActShriG.L.Mohta beandisherebyreappointedasaWholetimeDirectoroftheCompanyfora periodofthreeyearsw.e.f.1stApril,2011to31stMarch,2014subjecttothe approvalofShareholdersandotherappropriateauthorities,ifany,onthefollowing termsandconditions: 1. Salary:Rs.2,50,000/p.m. (inthegradeofRs.2,50,00050,0003,50,000)
Category 'A' i) MedicalReimbursement:Expensesincurredforselfandfamilysubjectto aceilingofonemonth'ssalaryinayearorthreemonth'ssalaryovera periodofthreeyears. LeaveTravelConcession:Forselfandfamilytoandfrotoanyplace onceinayearsubjecttoceilingofonemonth'ssalary. ClubFees:Feesandsubscriptionofmaximumtwoclubs.Thiswillnot includeadmissionandlifemembershipfees.
ii) iii)

2. 3. ExgratiainlieuofBonus:20%ofSalaryorasperrulesoftheCompany. Perquisites:InadditiontotheaforesaidSalary,thefollowingperquisites wouldbeallowed: (includinganystatutorymodificationsorreenactmentthereof,forthetimebeing inforce)theconditionsstipulatedinscheduleXIIIofthesaidActShriVipul AgarwalbeandisherebyreappointedasaWholetimeDirectoroftheCompany foraperiodofthreeyearsw.e.f.1stApril,2011to31stMarch,2014subjecttothe approvalofShareholdersandotherappropriateauthorities,ifany,onthefollowing termsandconditions: 1. 2. 3. Salary:Rs.2,50,000/p.m. (inthegradeofRs.2,50,00050,0003,50,000) ExgratiainlieuofBonus:20%ofSalaryorasperrulesoftheCompany. Perquisites:InadditiontotheaforesaidSalary,thefollowingperquisites wouldbeallowed:
Category 'A' i) ii) MedicalReimbursement:Expensesincurredforselfandfamilysubject toaceilingofonemonth'ssalaryinayear. LeaveTravelConcession:Forselfandfamilytoandfrotoanyplacein Indiaonceinayearsubjecttoceilingofonemonth'ssalary.
Category 'B' Thefollowingperquisiteswillnotbeincludedinthecomputationoftheceilingon remunerationasperPartIIofSectionIIofScheduleXIIIoftheCompaniesAct, 1956. i) Company'scontributiontowardsProvidentFundAsper rulesofthe Companybutnotexceeding12%ofthesalaryaslaiddownunderthe IncomeTaxRules,1962. ii) GratuityInaccordancewiththeprovisionsofpaymentofGratuityActbut shallnotexceedhalfmonth'ssalaryforeachcompletedyearofservice. iii) LeaveonfullpayandallowancesasperrulesoftheCompanybutnot exceedingonemonth'sleaveforeverycompletedyearofservice. Category 'C' i) FreeuseofCompany'sCarwithdriverforCompany'sbusiness.
Category 'A' i) MedicalReimbursement:Expensesincurredforselfandfamilysubjectto aceilingofonemonth'ssalaryinayear. ii) LeaveTravelConcession:Forselfandfamilytoandfrotoanyplacein Indiaonceinayearsubjecttoceilingofonemonth'ssalary. Category 'B' Thefollowingperquisiteswillnotbeincludedinthecomputationoftheceilingon remunerationasperPartIIofSectionIIofScheduleXIIIoftheCompaniesAct, 1956. i) Company'scontributiontowardsProvidentFundAsper rulesofthe Companybutnotexceeding12%ofthesalaryaslaiddownunderthe IncomeTaxRules,1962. ii) GratuityInaccordancewiththeprovisionsofpaymentofGratuityActbut shallnotexceedhalfmonth'ssalaryforeachcompletedyearofservice. iii) LeaveonfullpayandallowancesasperrulesoftheCompanybutnot exceedingonemonth'sleaveforeverycompletedyearofservice. Category 'C' i) FreeuseofCompany'sCarwithdriverforCompany'sbusiness. ii) Freemobileandtelephonefacility.Personallongdistancecallsshallbe billedbytheCompany. iii) Reimbursementoftravelingexpensesactuallyincurredforthebusinessof theCompany. Providedthatthetotalremunerationshallnotexceed5%ofthenetprofitofthe Company. RESOLVEDFURTHERTHATtheservicesoftheWholetimeDirectorwould besubjecttoterminationbyonemonth'snoticefromeithersideorpaymentof salaryinlieuthereof. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeandis herebyauthorizedtoacceptanymodification(s)inthetermsandconditionsofthe saidappointmentandremunerationinsuchmannerasmaybesuggestedbyany authorityandacceptabletoShriVipulAgarwal. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeand isherebyauthorizedtoenterintonecessaryagreementonbehalfoftheCompany withShriVipulAgarwal,WholetimeDirectoroftheCompanyonthetermsand
ii) Freemobileandtelephonefacility.Personallongdistancecallsshallbe billedbytheCompany. iii) Reimbursementoftravelingexpensesactuallyincurredforthebusinessof theCompany. Providedthatthetotalremunerationshallnotexceed5%ofthenetprofitofthe Company. RESOLVEDFURTHERTHATtheservicesoftheWholetimeDirectorwould besubjecttoterminationbyonemonth'snoticefromeithersideorpaymentof salaryinlieuthereof. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeandis herebyauthorizedtoacceptanymodification(s)inthetermsandconditionsofthe saidappointmentandremunerationinsuchmannerasmaybesuggestedbyany authorityandacceptabletoShriG.L.Mohta. RESOLVEDFURTHERTHATtheBoardofDirectorsoftheCompanybeandis herebyauthorizedtoenterintonecessaryagreementonbehalfoftheCompany withShriG.L.Mohta,WholetimeDirectoroftheCompanyonthetermsand conditionsasmentionedhereinaboveoranymodificationsthereofasmaybe agreedbytheBoardofDirectorsandacceptabletoShriG.L.Mohta. RESOLVEDFURTHERTHATBoardofDirectorsoftheCompanybeandis herebyauthorizedtotakeallnecessarystepstoimplementthisresolution." 8. Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowing resolutionasa SPECIAL RESOLUTION: "RESOLVEDTHATpursuanttotheprovisionsofSections198,267,269,309, 310andallotherapplicableprovisions,ifany,oftheCompaniesAct,1956

conditionsasmentionedhereinaboveoranymodificationsthereofasmaybe agreedbytheBoardofDirectorsandacceptabletoShriVipulAgarwal." RESOLVEDFURTHERTHATBoardofDirectorsoftheCompanybeandis herebyauthorizedtotakeallnecessarystepstoimplementthisresolution." 9. Toconsiderand,ifthoughtfit,topasswithorwithoutmodification(s)thefollowing resolutionasa SPECIAL RESOLUTION: "RESOLVEDTHAT consent ofthe Company be and is hereby given in termsofSection293(1)(a)andallotherapplicableprovisions,ifany,ofthe CompaniesAct,1956totheBoardofDirectorstomortgage/hypothecateand/ orcreatecharge/pledge,etc.inadditiontothemortgages/hypothecations/ charges/ pledgescreated bythe Company,insuch formandmannerand withsuchrankingand atsuchtimeand onsuchterms asthe Boardmay determine,onalloranyofthemoveableand/orimmoveablepropertiesof theCompany,bothpresentandfutureand/orthewholeoranypartofthe undertaking(s)oftheCompanyinfavouroftheBanks,FinancialInstitutions, BodiesCorporate,PersonsoranyotherLendingInstitutionswhethersituated inIndiaorabroad,Agentsand/orTrusteesforsecuringanyloans,advances, workingcapitalfacilities,billdiscounting,oranyotherfinancialassistance, fully/partlyconvertibledebenturesand/orsecurednonconvertibledebentures withorwithoutdetachableornondetachablewarrantsorsecuredpremium notes,floatingratenotes/bondsoranyothersecured debtinstrumentsor externalcommercialborrowingsinany formtogether withinterest,further interestthereon,compoundinterestincaseofdefault,accumulatedinterest, allothercosts,chargesandexpensespayablebytheCompanyuptoalimit of Rs.3,000 Crores (Rupees ThreeThousand Crores Only)in terms of Section293(1)(d)oftheCompaniesAct,1956andthedocumentsbefinalised andexecutedbytheCompanyintheirfavourcontainingsuchspecificterms andconditionsandcovenantsinrespectofenforcementofsecurityasmay bestipulatedinthatbehalfandagreedtobetweentheBoardofDirectorsand theLenders/Trustees. RESOLVEDFURTHERTHATforthepurposeofgivingeffecttothisresolution theBoardofDirectorsbeandisherebyauthorisedtodoallsuchacts,deeds, mattersandthings,asitmayinitsabsolutediscretiondeemnecessary,proper ordesirable,delegatealloranyofthesepowerstoaCommitteeofDirectors orManagingDirectororWholetimeDirectororDirectororCompanySecretary oranyotheremployeeoftheCompanyandtosettleanyquestion,difficultyor doubtthatmayariseinthisregard,tofinaliseandexecuteallsuchdeeds, documentsandwritingsasitmaydeemnecessary,desirable,expedientor proper." 2. NOTES: 1. AMEMBER ENTITLEDTOATTENDAND VOTEATTHEMEETINGIS ENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEAD OFHIMSELF/HERSELFANDSUCHPROXYNEEDNOTBEAMEMBER OFTHE COMPANY. Proxies in order tobeeffectivemustbereceivedbythe Companyatits Registered/CorporateOfficenotlessthan48hoursbeforecommencementof themeeting. Membersarerequestedtobringtheirattendanceslipalongwiththeircopyof AnnualReporttothemeeting. RegisterofMembersandShareTransferBookswillremain closedfrom 27thSeptember,2011to29thSeptember,2011(bothdaysinclusive). Membersarerequestedto: i) ii) QuotetheirFolio/DPandClientIDnumber(s)inallcorrespondencewith theCompany. Notify/sendimmediatelytotheCompany'sRegistered/CorporateOffice: a) Change,ifany,intheirregisteredaddressalongwithPinCodeNo. b) Forconsolidationoftheirshareholding,ifregistered inidentical names(s)orjointnamesinidenticalorderinmorethanonefolio,by sendingarequestletteralongwithrelativesharecertificates. 6. ThesharesoftheCompanyw.e.f.26thFebruary,2001arebeingtradedin DEMATformonly.ThoseshareholdersoftheCompanywhomayliketohave theirsharesindematformmaysendtheirsharesthroughtheirrespectiveDPs fordemat.
3. 4. 5.
7. Membersholdingsharesinphysicalformanddesirousofmakinganomination inrespectoftheirshareholdingintheCompanyaspermittedundersection109A oftheCompaniesAct,1956arerequestedtosendtheprescribedForm2Btothe Corporate/RegisteredOfficeoftheCompany.Theform2Bforthepurpose wouldbeavailableondemandandcanbedownloadedfromtheCompanys websitewww.prakash.com. 8. The Securities andExchange Board of India (SEBI)has mandated the submission of PermanentAccount Number (PAN) by every participant in securitiesmarket.Memberswhoareholdingsharesindematformaretherefore, requestedtosubmittheselfattestedcopyofthePANcardtotheirDepository Participantswithwhomtheyaremaintainingtheirdemataccount(s).Members whoareholdingsharesinphysicalformcansubmittheirselfattestedcopyof PANcardtotheCompany. Payment of dividend : ToenabletheCompanytomakepaymentofdividendthroughNationalElectronic ClearingService(NECS)/ElectronicClearanceService(ECS)andtoprovide protectionagainstfraudulentencashmentofDividendWarrants,shareholders holdingsharesinphysicalformarerequestedtosubmitparticularsoftheirbank accountviz.nameandaddressofthebranchofthebank,9digitMICRcodeof branch,typeofaccountandaccountnumbertotheCompany'sofficeatSRIVAN, NajafgarhBijwasanRoad,Bijwasan, NewDelhi110061.NECS /ECS form for providing bank details is available onthe Companyswebsite www.prakash.com
9. ByorderoftheBoard For Prakash Industries Limited RegisteredOffice: 15Km.Stone, DelhiRoad, Hissar125044(Haryana) Dated:30thMay,2011
Manoj Agarwal CompanySecretary

Shareholdersholdingsharesinelectornicformarerequestedtosubmitparticulars ofthierbankaccounttotheirrespectivedepositoriesforpaymentofdividend. TheCompanycannotactonanyrequestreceiveddirectilyfromanyshareholders holdingsharesinelectorinicformforbankmandatesoranychangeofbank pariticulars. 10. Information as required under Clause 49 IV(G) of the Listing Agreement with respect to the Directors who are retiring by rotation and being eligible seeking reappointment is as under: a) Information regarding Shri Manish Bahl proposed for reappointment as Director: ShriBahlretiresbyrotationattheAnnualGeneralMeetingandbeing eligibleoffershimselfforreappointment.ShriBahlhasbeenallotted DirectorIdentificationNo.00054196. ShriBahljoinedtheBoardoftheCompanyintheyear1993. ShriBahlisaretiredIASofficerhavingworkedinvariouscapacitiesin theStatesandCentralGovernment.ShriBahlwasservingasSecretary totheGovernmentofIndia,intheMinistryofTourismatthetimeofhis retirement.Hehasvastexperienceofadministration. Becauseofhisvastexperience,hisreappointmentwouldbebeneficial totheCompany. ShriBahlisnotholdingDirectorshipinanyotherCompany. Ason 31stMarch,2011ShriBahl is holding1750 equityshares of Rs.10/eachofPrakashIndustriesLtd. b) Information regarding Shri Piyoosh Goyal proposed for reappointment as Director: ShriGoyalretiresbyrotationattheAnnualGeneralMeetingandbeing eligibleoffershimselfforreappointment.ShriGoyalhasbeenallotted DirectorIdentificationNo.00113772. ShriGoyaljoinedtheBoardoftheCompanyintheyear2009. ShriGoyalisayounganddynamicbusinessmanandbyvirtueofhis experiencehisreappointmentwouldbebeneficialtotheCompany. ShriGoyalisholdingDirectorshipinthefollowingotherCompanies: Directorship(s) held in other Companies WorldsWindowImpexIndiaPvt.Ltd. WorldsWindowInfrastructureandLogisticsPvt.Ltd. WoneManagementSystemsPvt.Ltd. MAMHomeSolutionsPvt.Ltd. Ason31stMarch,2011ShriGoyalisnotholdinganyequitysharesof PrakashIndustriesLtd. EXPLANATORY STATEMENT AS REQUIRED UNDER SECTION 173(2) OF THE COMPANIES ACT, 1956 Item No.6 ShriV.P.Agarwalbornon24thMarch,1956isanexperiencedIndustrialisthailing fromareputedbusinesshouse.HehasbeentheManagingDirectoroftheCompany w.e.f.31stJuly,1980andisthusconversantwithallthefacetsoftheworkingofthe Company. UnderthemanagementcontrolandguidanceofShriV.P.Agarwal,theCompany hasconsistentlymadesubstantialgrowthandimproveduponitsperformanceinall fields. TheShareholdersoftheCompanyattheExtraordinaryGeneralMeetingheldon 25thApril,2008hadreappointedShriV.P.AgarwalasaChairman&Managing Directorforaperiodofthreeyearsfrom1stApril,2008to31stMarch,2011andalso furtherrevisedtheremunerationw.e.f.1stApril,2009.Underthemanagementcontrol andguidanceofShriV.P.Agarwal,Chairman&ManagingDirector,theCompany hasconsistentlyimproveduponitsperformance.Consideringtheinflationarytrend andincreaseinthebusinessactivitiesoftheCompanywhichresultedinincreasein workandresponsibilityofChairman&ManagingDirectorandalsotheamountof remunerationbeingpaidtotheManagingDirectorsofsimilarIndustries,theBoardof DirectoroftheCompanydeemedfittorevisetheremunerationpayabletoShriV.P. Agarwal,Chairman&ManagingDirectorandreappointhimasChairman&Managing Directorforaperiodofthreeyearscommencingform1stApril,2011to31stMarch, 2014ontheterms&conditionsasmentionedintheresolution. ThematterhadbeendiscussedandapprovedbytheManagerialRemuneration Committeeinitsmeetingsheldon10thFebruary,2011and28thMay,2011which recommendedthesamefortheapprovaloftheBoard.TheBoardofDirectorsintheir meetingsheldon10thFebruary,2011and30thMay,2011discussed,approvedand recommendedthereappointmentandremunerationpayableasmentionedinthe resolutionfortheapprovalofshareholders. AcopyoftheresolutionpassedbytheBoardofDirectorsanddraftagreementrelating toreappointmentandpaymentofremunerationandotherrelevantdocumentsare openforinspectionofthemembersattheRegisteredOfficeoftheCompanybetween 11.00A.M.to1.00P.M.onanyworkingdaypriortothedateofthemeetingandalso atthemeeting.TheabovetermsandconditionsassetoutinthesaidResolutionmay betreatedasanabstractunderSection302oftheCompaniesAct,1956. None ofthe DirectorsexceptShriV.P.Agarwaland ShriVikramAgarwal are interestedintheresolution. YourDirectorsrecommendtheresolutionforyourapproval. Item No.7 ShriG.L.MohtaisaCharteredAccountantbyprofessionhavingexperienceofmore than43yearsinFinanceandAccountsandsteelindustryoperations.Hehasbeen withtheCompanyformorethan13yearsandiscurrentlyaWholetimeDirector. TheShareholdersoftheCompanyattheExtraordinaryGeneralMeetingheldon 25thApril,2008hadreappointedShriG.L.MohtaasaWholetimeDirectorfora periodofthreeyearsfrom1stApril,2008to31stMarch,2011.Havingregardtothe longexperienceintheworkingoftheCompanyandwideknowledgeandqualifications, theBoardofDirectorsfeelsthatthereappointmentofShriG.L.MohtaasaWhole timeDirectorwouldbebeneficialtotheCompany. ThematterhadbeendiscussedandapprovedbytheManagerialRemuneration Committeeinitsmeetingheldon10thFebruary,2011whichrecommendedthesame fortheapprovaloftheBoard.TheBoardofDirectorsintheirmeetingheldon10th February,2011discussed,approvedandrecommendedthereappointmentofShri G.L.MohtaasaWholetimeDirectorforaperiodofthreeyearsw.e.f.1stApril,2011 ontheterms&conditionsasmentionedintheresolutionfortheapprovalofshareholders.

AcopyoftheresolutionpassedbytheBoardofDirectorsanddraftagreementrelating toreappointmentandpaymentofremunerationandotherrelevantdocumentsare openforinspectionofthemembersattheRegisteredOfficeoftheCompanybetween 11.00A.M.to1.00P.M.onanyworkingdaypriortothedateofthemeetingandalso atthemeeting.TheabovetermsandconditionsassetoutinthesaidResolutionmay betreatedasanabstractunderSection302oftheCompaniesAct,1956. NoneoftheDirectorsexceptShriG.L.Mohtaisinterestedintheresolution. YourDirectorsrecommendtheresolutionforyourapproval. Item No.8 ShriVipulAgarwalisaCharteredAccountantbyprofessionhavingexperienceof morethan30yearsinFinanceandAccountsandcommercialoperations.Hehas been withtheCompany formorethan13 yearsand iscurrently aWholetime Director. TheShareholdersoftheCompanyattheExtraordinaryGeneralMeetingheldon 25thApril,2008hadreappointedShriVipulAgarwalasaWholetimeDirectorfora periodofthreeyearsfrom1stApril,2008to31stMarch,2011.Havingregardtothe longexperienceoftheworkingoftheCompanyandwideknowledgeandqualifications, theBoardofDirectorsfeelsthatthereappointmentofShriVipulAgarwalasaWhole timeDirectorwouldbebeneficialtotheCompany. ThematterhadbeendiscussedandapprovedbytheManagerialRemuneration Committeeinitsmeetingheldon10thFebruary,2011whichrecommendedthesame fortheapprovaloftheBoard.TheBoardofDirectorsintheirmeetingheldon10th February,2011discussed,approvedandrecommendedthereappointmentofShri VipulAgarwalasaWholetimeDirectorforaperiodofthreeyearsw.e.f.1stApril, 2011ontheterms&conditionsasmentionedintheresolutionfortheapprovalof shareholders. AcopyoftheresolutionpassedbytheBoardofDirectorsanddraftagreementrelating toreappointmentandpaymentofremunerationandotherrelevantdocumentsare openforinspectionofthemembersattheRegisteredOfficeoftheCompanybetween 11.00A.M.to1.00P.M.onanyworkingdaypriortothedateofthemeetingandalso atthemeeting.TheabovetermsandconditionsassetoutinthesaidResolutionmay betreatedasanabstractunderSection302oftheCompaniesAct,1956. NoneoftheDirectorsexceptShriVipulAgarwalisinterestedintheresolution. YourDirectorsrecommendtheresolutionforyourapproval. Item No.9 TheshareholdersoftheCompanyhad,intheirmeetingheldon28thApril,2008, approvedborrowingsuptoanamountofRs.3,000Crores(RupeesThreeThousand CroresOnly)andauthorisedtheBoardtoborrowfundsfromtimetotime,forthe businessoftheCompany. TheCompanyhastosecuretheborrowingsbywayofmortgage,hypothecation, charge,etc.asmayberequiredbythelenders.SincetheCompanyhadalready increasedtheborrowinglimittoRs.3,000Crores(RupeesThreeThousandCrores Only),approvalissoughtfromtheshareholdersintermsofSection293(1)(a)ofthe CompaniesAct,1956,forsecuringtheborrowedfundsuptoRs.3,000Crores(Rupees ThreeThousandCroresOnly)bywayofhypothecation,mortgages,chargesetc.on themovableandimmovablepropertiesoftheCompany.TheBoardconsideredthis matterinitsmeetingheldon30thMay,2011. NoneoftheDirectorsis,inanyway,concernedorinterestedintheresolution. YourDirectorsrecommendtheresolutionforyourapproval. ByorderoftheBoard For Prakash Industries Limited RegisteredOffice: 15Km.Stone, DelhiRoad, Hissar125044(Haryana) Dated:30thMay,2011
Manoj Agarwal CompanySecretary
DIRECTORS REPORT
DearShareholders,
th YourDirectorspresentthe30 AnnualReporttogetherwiththeAuditedStatement t st ofAccountsoftheCompanyfortheyearended31 March,2011.
FINANCIAL RESULTS (Rs.inCrores) For the year ended 31 st March, 2011 NetSales&OtherIncome EBIDTA Depreciation Financial Expenses ExpensesAmortised Liabilitieswrittenback Exceptionalitems Profitbeforetax ProvisionforTaxes Profitaftertax Balancebroughtforward TransfertoGeneralReserve ProposedDividend TaxonDividend Carriedovertonextyear PERFORMANCE During the year under review, the Company has achieved net revenue of Rs.1,673croresasagainstRs.1,571croresinthepreviousyear.Afterproviding forinterest,depreciationandtax,thenetprofitoftheCompanystandsatRs.267 croresduringtheyearunderreviewasagainstRs.266croresintheprevious year. OPERATIONAL REVIEW YourDirectorshavepleasure toinformyou thatduringtheyear under review theperformanceoftheIntegratedSteelPlantoftheCompanywithcapacitiesfor Sponge Iron, Steel Melting, FerroAlloys and Power Generation has been satisfactory.TheSpongeironproductionhasregistered animpressivegrowth largelyduetocapacityexpansionwhichwascompletedinthelaterpartofthe previousfinancialyear The Wire Rod Division of the Company has continued to give impressive performanceprimarilyduetostrongpositioningoftheCompany'sproductinthe market.TheCaptiveCoalmining operationshavealsoperformedexceedingly wellduringthe yearresultingintosubstantialcostreduction.RigidPVCPipes Divisionhasfurtherimprovedupontheperformanceandhasachievedhighest everproductionduringtheyear. FUTURE PROSPECTS TheCompanyisfurtherenhancingitsspongeironcapacitybycommissioningan additionalmoduleduringthecurrentfinancialyear.TheCompanyisinthemidstofa majorexpansioninthePowergenerationcapacityandisimplementingatotal capacityof625MWinaphasedmanner.Thefirstphaseoftheprojectisgetting 1,672.82 349.26 67.25 5.70 2.70 273.61 273.61 6.53 267.08 13.16 280.24 250.00 13.45 2.18 14.61 Fortheyearended 31st March,2010 1,570.70 360.15 56.79 25.49 2.69 275.18 21.38 (23.31) 273.25 7.09 266.16 7.00 273.16 260.00 13.16
completedandisexpectedtobecommissionedbythenextquarter.Thesubsequent phaseshavebeentakenforimplementationandwillbecompletedinduecourseof time. TheCompanyhasbeenmakingcontinouseffortstobecomeselfreliantinironore supplies.Inthisdirection,variousstepshavebeentakensothattheCompany'siron oreminesmaygetstartedsoon.TheCompanyhasfirmedupplanstoimproveupon thecapacityutilizationintheHeavyStructuralandTMTDivisionsoftheCompanyin thecurrentfinancialyear.ThesestepsalongwithcapacityadditionintheSpongeIron andPowergenerationareexpectedtoimproveupontheoperatingmarginsofthe Companysubstantiallyinthecurrentfinancialyear. ENVIRONMENT AND SOCIAL RESPONSIBILITY Companyhasalwaysbeencommittedtowardsitsemployeesandthesocietyby providingthemagreenandcleanenvironment.Itisfocussedtoreducethepollutants andtheirimpactontheenvironmentonacontinuousbasisthroughcontrolson process,resourceconsumption,technologyandadoptionofenvironmentalsafepractises inadditiontocomplianceofallrelevantandapplicableenvironmentallegislationsand regulations.Withsafety,healthandenvironmentprotectionhighonitscorporate agenda,thecompanyiscommittedtoconductingbusinesswithastrongenvironment conscience,soastoensuresustainabledevelopment,safeworkplacesandimprove thequalityoflifeofitsemployees,customersandthecommunity. TheCompanybelievesinbeingproactiveinachievingabalancebetweengrowth andsocialneeds.Thecompanyhasbeencontinuallysupportinginnumerablesocial andcommunityinitiatives,whichhastouchedthelivesofnumberofpeoplepositively inthesurroundingareasbysupportingenvironmentalandhealthcareactivities, familywelfare,social,culturalandeducationalprogrammes,providingemployment opportunitiesandrecreationalfacilities. SHARE CAPITAL Duringtheyearunderreview,theequitysharecapitaloftheCompanyhasincreased by1,27,94,800equitysharesofRs.10eachpursuanttoconversionofForeign CurrencyConvertibleBondsandequitywarrants. DIRECTORS Inaccordancewiththeprovisionsofsection 256oftheCompaniesAct, 1956, ShriManish BahlandShri PiyooshGoyal areliabletoretirebyrotation atthe ensuingAnnualGeneralMeeting.Theyareeligibleforreappointmentandoffer themselvesforreappointment. ThetermsofappointmentofShriV.P.Agarwal,ChairmanandManagingDirector and Shri G.L. Mohtaand Shri VipulAgarwal, WholetimeDirectorsisexpiring andtheyarebeingreappointed. AppropriateresolutionsforthereappointmentoftheaforesaidDirectorsarebeing movedattheensuingAnnualGeneralMeetingwhichtheBoardrecommendsfor yourapproval. DIVIDEND The Board has recommended dividend @ 10% per Equity Share on the 13,44,88,514EquitySharesofRs.10eachoftheCompanyfortheyear ended 31stMarch,2011,subjecttotheapprovaloftheMembersattheensuingAnnual GeneralMeeting. FIXED DEPOSITS Companyhasnotacceptedanydepositsduringtheyearunderreview.

DIRECTORS RESPONSIBILITY STATEMENT PursuanttotherequirementunderSection217(2AA)oftheCompaniesAct,1956 withrespecttoDirector'sResponsibilityStatement,itisherebyconfirmed: i). Thatinthepreparationoftheannualaccountsforthefinancialyearended 31stMarch,2011theapplicableaccountingstandardshavebeenfollowed alongwithproperexplanationrelatingtomaterialdepartures ThattheDirectorshaveselectedsuchaccountingpoliciesandappliedthem consistentlyandmadejudgementsandestimatesthatwerereasonableand prudent so as to give a true and fair view of thestate of affairs of the Companyattheend ofthe financialyearandoftheprofitorlossofthe Companyfortheyearunderreview ThattheDirectorshavetakenproperandsufficientcareforthemaintenance ofadequateaccountingrecordsinaccordancewiththeprovisionsofthe CompaniesAct,1956forsafeguardingtheassetsoftheCompanyandfor preventinganddetectingfraudandotherirregularities ThattheDirectorshavepreparedtheaccountsforthefinancialyearended 31stMarch,2011ona'goingconcern'basis. CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO AsrequiredunderSection217(1)(e)oftheCompaniesAct,1956readwiththe Companies(DisclosureofParticularsinthereportoftheBoardofDirectors)Rules, 1988,astatementshowingtheinformationrelatingtotheConservationofEnergy, Research and Development,TechnologyAbsorption and Foreign Exchange EarningsandOutgoisenclosedandshouldbetreatedasapartofthisreport. CORPORATE GOVERNANCE ThesignificanceofCorporateGovernancehasalwaysbeenrecognizedbythe Company.A separate report on Corporate Governance and Management Discussion andAnalysis alongwith a certificatefrom thePractising Company SecretaryregardingcomplianceoftheconditionsofCorporateGovernanceas stipulated under Clause49oftheListingAgreement withStockExchanges is attachedandformspartofthisReport. ACKNOWLEDGEMENT YourDirectorstakethisopportunitytooffertheirsincerethankstoshareholders, various departments of Central and StateGovernments, FinancialInstitutions, Banks,CustomersandSuppliersfortheircontinuedsupportandlookforwardto havingthesamesupportinallourfutureendeavours. YourDirectorsplaceonrecordtheirsincereappreciationofthe dedicatedand significantcontributionmadebyofficers,staffandworkersoftheCompanyatall levelsandlookforwardtotheircontinuedsupport.
ii)
iii)
iv)
AUDITORS M/sChaturvediandPartners,AuditorsoftheCompany,retireattheforthcoming AnnualGeneralMeeting,andbeingeligible,offerthemselvesforreappointment. TheCompanyhasreceivedaCertificatefromtheAuditorstotheeffectthattheir reappointment,ifmade,wouldbewithinthelimitprescribedunderSection224 (1B)oftheCompaniesAct,1956.YourDirectorsrecommendtheirreappointment asAuditorsoftheCompany. AUDITORS' OBSERVATIONS As regardsAuditors' observations in their Report,the relevantNotes on the Accountsareselfexplanatory. PARTICULARS OF EMPLOYEES Asrequired bythe provisionsofsection217(2A)oftheCompaniesAct,1956, readwiththeCompanies(ParticularsofEmployees)Rules,1975,asamended, thenamesandotherparticularsofemployeesaresetoutintheannexuretothe Directors'report.
By Order of the Board Place : New Delhi th Dated:30 May,2011 V. P. Agarwal Chairman & Managing Director

MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure & Developments TheSteelIndustryhasenteredintothecurrentfiscalonapromisingnote.Basedon theestimatesandstudies,theIndia'ssteelindustrywillrecordacompoundannual growthrate(CAGR)ofcloseto10%during201013inviewofgovernmentproactive incentiveplanstoboosteconomicgrowthbyinjectingfundsinvariousindustries, suchasconstruction,infrastructure,automobile,andpower.Further,Steelconsumption inIndiaisexpectedtogrowsignificantlyincomingyearsaspercapitafinishedsteel consumptionisfarlessthanitsregionalcounterparts.Indiahasalreadysteppedupto bethefourthlargestproducerofsteelintheworldwithitstotalsteelproductionofclose to78MillionMTin2011andisaimingforthenumbertwopositionby2015.Inthe recenttimes,theIndianSteelindustryhasearnedacentralpositionintheglobalsteel marketwithglobalacquisitions,continuousmodernization,improvingenergyefficiency, andbackwardintegrationintoglobalrawmaterialsources.Onthewhole,theoutlook forthedomesticoperating environmentispositive,drivenby robustgrowth in infrastructure,power,autosandconstruction. Opportunities and Threats AlthoughtheIndianSteelIndustryhassteppedupto4thpositioninthetallyofthesteel producersacrosstheglobe,thepercapitasteelconsumptioninthecountrystill continuestobeaslowas40kgsinurbanIndiaand2kgsinruralIndiaasagainst averageconsumptionofcloseto350kgsindevelopingcountries.Government policieshavebeenframedtomorethandoublethesteelconsumptionby2020.The outlookfortheIndianSteelIndustryappearstobebrightinthecomingyearsduetoits strongdomesticeconomy,massiveinfrastructureneedsandexpansionofindustrial production.However,theonlyareaofconcernaretheimpedimentsinthegrowth potentialonaccountofrisinginputcost,whichmayimpactthecoststructureofthe infrastructureprojectsandothermajorusersofsteel. Inthepresentindustryscenario,thekeytothesuccessandgrowthofsteelplayers lieinthelevelofintegration,whichisachievedbythemintheiroperations.Power, Ironoreandcoalarethethreekeyinputsformanufacturingsteel.YourCompanyhas beenmakingconcertedeffortstobecomeselfreliantwithrespecttotheseinputs.In thisdirection,significantsuccesshasbeenachievedbyprocuringcoalminestomeet itsrequirementofcoal.Also,itisoperatingcaptivepowerplanttomeetthepower requirement of itssteel operations.Further,the Company isinthe process of implementingadditionalpowercapacitiestotakecareofitsexistinggapinthepower requirement.However,theonlyconcernfortheCompanycontinuestobethesourcing ofironore,whichisanothermajorinputinsteelmakingandconstitutessignificant portionofthecost.Theironorepriceshavecontinuedtospiralduringtheyearunder review,whichaffectedthesteelmargins.Inordertomitigatetheimpactofironoreon theworkingoftheCompany,theCompanyhasgotitselfsanctionedcaptiveironore mines,however,theinordinatedelaysinregulatoryapprovalsisamajorconcern beforetheminesbecomeoperational. Segment Wise / Product Wise Performance / Outlook Steel,PowerandMiningarethecoreareasofoperationsfortheCompany.The performanceoftheintegratedsteelandpoweroperationsoftheCompanywere satisfactoryduringtheyear.The sponge ironhasshownimpressive growth in productioncontributingsubstantiallytocostreductioninthesteeloperations.Power generationhasalsogoneupandthedivisionhasachievedhighestevergeneration duringtheyear.TheWireRodDivisionoftheCompanycontinuedtowitnessstrong marketdemand,andhascontributedsignificantlytothebottomline.Captivecoal miningoperationscontinuedatoptimallevelthroughouttheyear.Companyisalsointo manufactureofRigidPVCPipeswhichhasfurtherimprovedupontheperformance andachievedhighesteverproductionlevels. ImportantfactorsthatcouldmakeadifferencetotheCompany'soperationsinclude, amongothers,rawmaterialavailability,economicconditionsaffectingdemandand priceconditionsinthemarketsinwhichtheCompanyoperates,changesinthe Governmentregulations,taxlawsandotherstatutesandincidentalfactors. Internal Control System and their Adequacy TheInternalControlSystemisaimedatsoundandefficientmanagementandachieving Company'sobjectivesbyassuringtheadequacyoftheCompany'sprocesseswith referencetotheireffectivenessandefficiency,ensuringthesoundness,integrityand fairnessoftheaccountingandfinancialreportingsystem,preservingthecorporate assets,complianceoftheapplicablelaws,rulesandregulations,layingdownpolicies, guidelines,authoritiesandapprovalproceduresforalltheimportantfunctionsofthe Company. TheCompanyhasadequateinternalcontrolsystemswhichiscommensuratewithits sizeandnatureofbusiness.TheCompanyhasIndependentInternalauditorswhich regularlycarryoutcomprehensiveauditcoveringallthefunctionalareasonaquarterly basisandverifyandevaluatetheeffectivenessofthecontrols.TheInternalAudit reportsareplacedbeforetheAuditCommitteeoftheBoardofDirectorstoreviewand suggestimprovementstostrengthenthecontrols.AnnualBudgetsarepreparedand theactualperformanceisevaluatedand effectivestepsaretakentorectifythe shortfalls.TheInternalControlsystemisreportedtobeadequatebytheStatutory Auditorsalsointheirreport. Human Resources / Industrial Relations TheCompanyhasaptlyfolloweditsapproachtomaintaincordialIndustrialRelations atallthelevelsasitfirmlybelievesthathumanresourceplaysasignificantandvital roleinthegrowthofanorganisation.TheCompanyhasafullfledgedteamofcore professionalandtechnicalexpertswhichhelpstheemployeestodeveloptheirskills, updatetheirknowledgeandpromotejobsatisfactionbyconductingtrainingsessions and workshops ona regular basis.The Company ensuresthat goodworking environmentandallnecessaryamenitiesareprovidedtothestaffbothattheirwork andresidentialpremises.Companyhassetuprecreationalfacilities,clubs,temples andmedicalaidatthetownshipstotakecareoftheneedsoftheemployees.Company ensurescomplianceofallregulatoryandstatutorylawsapplicabletothefactories.All possiblesafetymeasuresarefollowedtoensurethesafetyoftheworkforce.The Companybelievesincreatingawarmandfriendlyatmosphereinfuturealsowhich shallhelpittoretainitsemployeesandnurturetheircareergrowth. Risks and Concerns Risksmanagementisastructuredanddisciplinedapproachtoidentifyandmanage theriskstheCompanymayface.Thecyclicnatureofthesteelindustryisoneofthe majorconcernstotheCompany.Inordertocounteractthis,theCompanyhasmade forayintopower,wherethecashflowsandprofitsaresteady.Inviewofthepositive growthforecastsinthePowerSectorandconsideringthehugegapintheexisting demandsupplysituation,thereareimmensegrowthopportunitiesinthesector,as suchnopotentialriskisenvisaged. Inadditiontothis,managinguninterruptedsupplyofrawmaterialisanothermajor concern.Inthisdirection,theCompanyhasalreadyinsulateditselfagainstthe probableswingsinpricesofcoalandpower.Ironorestillcontinuestobeanareaof concern,sincetheironorepriceshavebeenwitnessinghighlyvolatiletrendcoupled withshortsupplies.TheCompanyhasbeenallottedcaptiveminesinthestatesof OrissaandChhattisgarh,which,onceoperationalshallmaketheCompanyfullyself reliantregardingrawmaterials.

REPORT ON CORPORATE GOVERNANCE
1. COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE CorporateGovernancehasbeenacontinuousjourneyandthebusinessgoalsoftheCompanyareaimedatoverallwellbeingandwelfareofalltheconstituents. TheCompanyhasalwaysbelievedinadoptingbestpracticesofCorporateGovernancetomaximizetheinterestoftheshareholderswiththoseofotherstakeholders viz.customers,investors,businessassociates,employees,financersaswellassocietyatlarge.TheCompanyisfullycommitted andcontinuestofollowthe proceduresandpracticesinconformitywiththeCodeofCorporateGovernancecontainedinthelistingagreements.Theadoptionofsuchcorporatepracticeensures accountabilityofthepersonsinchargeoftheCompanyandtheendeavoursaretoimproveontheseaspectsonanongoingbasis. 2. BOARD OF DIRECTORS i) a) Composition TheCompanyBoardisbroadbasedconsistingofnineDirectorsheadedbyanExecutiveChairmanwhoisalsotheManagingDirectoroftheCompany. ThereisoneJointManagingDirectoralsoandtwoWholetimeDirectorsbesidesfiveNonExecutiveIndependentDirectors.Thesizeandcompositionofthe BoardthereforeconformswiththerequirementsofCorporateGovernanceReportundertheListingAgreementwiththeStockExchanges.TheBoardcomprises ofeminentpersonswithconsiderableprofessionalexperienceinvariedfields. b) Board Functioning and Procedures TheBoardplaysacrucialroleinensuringgoodgovernance.Thedecisionsaretakenonthebasisofconsensusarrivedatafterdetaileddiscussion.The BoardmembersarefreetobringupanymatterfordiscussionattheBoardMeetings. TheBoardcontinueditspursuitbyadoptingappropriatecorporatestrategiesandprudentbusinessplans.Adequatemonitoringsystemwasfollowedtosafeguard againstmajorriskandtoensureimplementationofpoliciesandprocedurestosatisfyitslegal,socialandethicalresponsibilities. ii) Attendance of each Director at the Board meetings & last Annual General Meeting during the year 201011 and number of other Directorships and committee memberships/ chairmanships held in other Companies:
S.No. Name of Directors and their DIN No.
Category
No.of Board Meetings Attended
Last AGM Attended
No. of Directorships held in other Companies Chairman Director
No. No.Committee of of Committee positions heldheld in positions in other companies others Companies Chairman Member
1.
2.
3. 4. 5. 6. 7. 8. 9.
Sh.V.P.Agarwal Chairman&ManagingDirector DINNo.00048907 Sh. VikramAgarwal JointManagingDirector DINNo.00054125 Dr.S.L. Keswani DINNo.00190790 Dr.RamK.Vepa DINNo.00054160 Sh.K.C. Mehra DINNo.00128733 Sh.ManishBahl DINNo.00054196 Sh.Piyoosh Goyal DINNo.00113772 Sh.G.L.Mohta DINNo.00054171 Sh.VipulAgarwal DINNo.00010147
Executive & Promoter Executive & Promoter Nonexecutive& Independent Nonexecutive& Independent Nonexecutive& Independent Nonexecutive& Independent Nonexecutive& Independent Executive Executive
No
Yes
5 4 5 5 1 5 5
Yes No No No No Yes Yes
9 2 4 2
1 2

iii) Pecuniary Relationship IndependentDirectorsviz.Dr.S.L.Keswani,Dr.RamK.Vepa,Sh.K.C. Mehra,Sh.ManishBahlandShriPiyooshGoyaldonothaveanypecuniary relationshipsortransactionswiththeCompanyexceptforthesittingfeesdrawn forattendingthemeetingsoftheBoardandCommittee(s)thereof. iv) No. of Board Meetings Duringtheyear 20102011 fiveBoard Meetingswere heldon23rdApril, 2010,28thMay,2010, 6thAugust,2010,12thNovember,2010and10th February,2011.Themaximumgapbetweenanytwomeetingswasnotmore thanfourmonths. DetailsoftheBoardmeetingsareasunder: S.No. 1 2 3 4 5 3. Date of Board Meeting 23.04.2010 28.05.2010 06.08.2010 12.11.2010 10.02.2011 Board Strength 9 9 9 9 9 No. of Directors present 9 8 7 8 8 ii) b) REMUNERATION COMMITTEE i) Terms, composition, names of members and chairman TheBoardofDirectorshadconstitutedaRemunerationCommitteein theyear2002. ThetermsofreferenceofRemunerationCommitteecoverthematters specifiedforthesaidCommittee underclause49oftheListing Agreement. TheCommitteecomprisesofDr.S.L.Keswani(independent/non executiveDirector)astheChairmanoftheManagerialRemuneration Committeeand ShriK. C. Mehra andShri ManishBahl(both independent/nonexecutiveDirectors)aremembersoftheManagerial RemunerationCommitteeoftheBoardofDirectors. DuringtheyeartwomeetingsoftheCommitteewereheldon10th February,2011and28thMay,2011whereintheremunerationsof ShriV.P.Agarwal,Chairman and ManagingDirector,Shri G.L. Mohta,andShriVipulAgarwal,WholetimeDirectorswereconsidered andrecommendedtotheBoard. Details of remuneration / sitting fee paid to Directors for the period from 1st April, 2010 to 31st March, 2011: (Rs.inLacs) S.No. Name of Director 1. 2. 3. 4. 5. ii) No. of Audit Committee Meetings TheAuditCommitteemetfourtimesduringtheyear201011on28th May,2010,6thAugust,2010,12thNovember,2010and10thFebruary, 2011andattendancewasasunder: S. No. 1. 2. 3. 4. 5. Name of Director Dr. S.L.Keswani Dr.RamK.Vepa Sh. K.C.Mehra Sh.ManishBahl Sh. VikramAgarwal Status Chairman Member Member Member Member Meetings Attended 4 3 4 4 4 iii) Details of Service Contracts of Directors: S. Name of Director No. 1. Shri V.P.Agarwal 2. ShriG.L.Mohta 3. ShriVipulAgarwal Period of Date of Notice Contract Reappointment Period 3 years 3 years 3 years 01.04.2011 01.04.2011 01.04.2011 01.02.2009 Nil Onemonth Onemonth Nil 9. 6. 7. 8. Sh.ManishBahl Sh.Piyoosh Goyal Sh.G.L.Mohta (WholetimeDirector) Sh.VipulAgarwal (WholetimeDirector) Nil Nil 24.00 24.00 Nil Nil 7.83 7.82 1.95 0.15 N.A. N.A. Sh.V.P.Agarwal
(Managing Director)
COMMITTEES OF THE BOARD OF DIRECTORS: a) AUDIT COMMITTEE i) Terms, composition, names of members and chairman ThetermsofreferenceoftheCommitteecoverthemattersspecified fortheAuditCommitteeunderclause49oftheListingAgreementas wellasthosementionedinsection292AoftheCompaniesAct,1956. TheCommitteecomprisesoffivemembersandmajorityofthemare IndependentDirectors.Dr.S.L.Keswani(independent/nonexecutive Director)istheChairmanoftheAuditCommittee,Dr.RamK.Vepa, ShriK.C.Mehra,ShriManishBahl(allindependentDirectors)and ShriVikramAgarwal(JointManagingDirector)arethemembersof theAuditCommittee.
Salary
Perquisites
Sitting Fee N.A. N.A. 2.55 2.10 1.95
144.00 10.05 Nil Nil Nil
17.28 1.21 Nil Nil Nil
Sh.VikramAgarwal (JointManagingDirector) Dr.S.L.Keswani Dr.RamK.Vepa Sh.K.C.Mehra
AuditCommitteemeetingsarealsoattendedbyrepresentativeof InternalAuditor,WholetimeDirectorsandPresident(Corporate Accounts)oftheCompany whoarepermanent inviteesforthe meeting. Company Secretary acts as Secretary of theAudit Committee.
4. Shri VikramAgarwal 3 years

iv) Details of shareholding of nonexecutive Directors in the Company as on 31st March, 2011 : S.No. Name of Director 1. 2. 3. 4. 5. c) Dr.S.L. Keswani Dr.RamK.Vepa ShriK.C.Mehra ShriManishBahl Shri Piyoosh Goyal No. of shares held 12000 3281 Nil 1750 Nil e) InCompliancetoClause47(f)oftheListingAgreementofStockExchanges,the CompanyhascreatedforthehelpofinvestorsanexclusiveemailIDviz. investorshelpline@prakash.com. ALLOTMENT COMMITTEE The Board has alsoconstitutedanAllotment Committee for allotment of equitysharesoranyotherinstrumentconvertible intoequityshares.The Committee comprises of Dr.S.L.Keswani (independent / nonexecutive Director)astheChairmanoftheAllotmentCommitteeandShriK.C.Mehra, Dr.RamK.VepaandShriManish Bahl (all independent / nonexecutive Directors)asmembersoftheAllotmentCommitteeoftheBoardofDirectors. TheCommitteemetthreetimesduringtheyear201011on17thApril,2010, 29thApril,2010and1stJanuary,2011andattendanceofmembersatthe meetingwasasfollows: S.No. 1. 2. 3. 4. 4. Name of Director Dr. S.L.Keswani Dr.RamK.Vepa Sh K.C. Mehra Sh.ManishBahl Status Chairman Member Member Member Meetings Attended 3 3 3 3
SHARECUMDEBENTURE TRANSFER COMMITTEE TheBoardhasconstitutedaSharecumDebentureTransferCommitteewhich meets twiceamonthtoapprovethe transferandtransmissionofshares/ debentures,issueofduplicatesharecertificates,consolidationandsubdivision ofshare,etc. The Committee consistsof ShriV.P.Agarwal, Chairman and Managing DirectoroftheCompanyasChairmanandShriVipulAgarwal,Wholetime DirectorasmemberoftheCommittee. TheCompanycomplieswithrequirementsofthelistingagreementsandthose ofDepositorieswithrespecttotransferofshares.Therequisitecertificates aresenttothetransfereeswithintheprescribedtime. Compliance Officer: AsrequiredbytheStockExchanges,theCompanyhasappointedShriManoj Agarwal,CompanySecretaryoftheCompanyasComplianceOfficertomonitor thetransferprocessandliaisonwiththeregulatoryauthorities.
CODE OF CONDUCT TheCompanyhasadoptedaCodeofConductforallDirectorsandSenior Managementpersonnel includingfunctional headsoftheCompany.The essenceofthecodeistoconductthebusinessoftheCompanyinhonest andethicalmannerincompliancewithapplicablelaws.TheCodeofConduct hasbeenpostedonwebsiteoftheCompany.AlltheBoardmembersand SeniorManagementpersonnelincludingfunctionalheadsoftheCompany haveaffirmedcompliancewiththeCodeofConduct.Adeclarationsigned bytheChairmanandManagingDirectorisgivenbelow: IntermsofClause49I(D)oftheListingAgreementitisherebydeclared thatalltheDirectorsandSeniorManagementpersonnelincludingfunctional headshaveaffirmedcomplianceoftheCodeofConductoftheCompany forthefinancialyear201011 Place : New Delhi Date : 30th May, 2011 V.P. Agarwal Chairman and Managing Director
d)
SHAREHOLDERS / INVESTORS GRIEVANCES COMMITTEE TheBoardhasalsoconstitutedashareholders/investorsgrievancesCommittee. TheCommitteehasthemandatetoreviewandredressthegrievancesof shareholders/investors.TheCommitteemetfourtimesduringtheyear201011 on23rdApril,2010,24thJuly,2010,30thOctober,2010and29thJanuary,2011 andattendanceofmembersatthemeetingwasasfollows: S.No. 1. 2. 3. Name of Director Dr. S.L.Keswani (Nonexecutiveandindependent) Dr.RamK.Vepa (Nonexecutiveandindependent) Sh. V.P.Agarwal (Executive) Status Chairman Member Member : Meetings Attended 4 4 4 5.
GENERAL BODY MEETINGS LastthreeAnnualGeneralMeetingsoftheCompanywereheldattheregistered officeoftheCompanyat15Km.Stone,DelhiRoad,Hissar125044(Haryana) asdetailedbelow: Year Date & Time Details of Special Resolution
ComplianceOfficer No.ofshareholders/investorscomplaints st receivedupto31 March,2011 No.ofcomplaintsnotsolvedtothe satisfactionofShareholders/investors No.ofpendingcomplaints
ShriManojAgarwal CompanySecretary 34 Nil Nil
: : :
20092010 14.08.2010at12.30p.m. Amendment inAuthorised Share CapitalclauseoftheMemorandum andArticles ofAssociationof the Company 20082009 01.08.2009at12.30p.m. Issue ofADRs /GDRs, FCCBs andotherequitylinkedinstruments

Increasing the shareholdingofFIIs limit of c) d) Book Closure : 27thSeptember,2011to29thSeptember,2011 (bothdaysinclusive) Payment of Dividend: Paymentofdividendwillbemadewithin30daysfromthedateofits approvalbymembersoftheCompany. e) Stock Exchanges where listed: i) Equity Shares Stock Code 506022
Revising the remuneration of ChairmanandManagingDirector 20072008 27.09.2008at12.30p.m. 6. DISCLOSURES i) TheCompanyhasdisclosedtherelatedpartiestransactionsinNotes onAccountsintheBalanceSheet.Thesamearenotinpotentialconflict withtheinterestoftheCompanyatlarge. Duringthelastthreeyears,therewerenostricturesmadeorpenalties imposedbyeitherSEBIortheStockExchangesoranyotherstatutory authoritiesonanymatterrelatingtothecapitalmarket. Nil
S.No. Name of the Stock Exchange 1. BombayStockExchangeLtd. PhirozeJeejeebhoyTowers, DalalStreet, Mumbai400001 NationalStockExchangeofIndiaLtd. ExchangePlaza,5thFloor, Plot No.C/1, G Block, BandraKurla Complex,Bandra(E), Mumbai400051 :
ii)
iii) There isaproperpolicytolookintothegrievancesofthe personnel oftheCompanyandno personhasbeendeniedaccesstotheAudit Committee. iv) TheCompanyhasgenerallycompliedwithallmandatoryrequirements ofClause49 ofthe ListingAgreementtotheextenttheseapplyto the Company. The Company has also adopted nonmandatory requirementsrelatingtoRemunerationCommitteeandWhistleBlower Policy. 7. MEANS OF COMMUNICATIONS TheBoardofDirectorsapprovesand takesonrecordthe quarterly/half yearly andannual results of theperformance of theCompanywhichare publishedinEnglishandHindilanguagenewspapers.Theresultsaresent totheStockExchangesonwhichthesharesoftheCompanyarelistedin theprescribedformatsoastoenabletherespectivestockexchangestoput thesameon their own Website. Theresults arealsodisplayed on the Company'sWebsiteviz.www.prakash.com.TheNoticeofAGMalongwith theAnnualReportissenttotheshareholderswellinadvanceoftheAGM. The stock exchanges are notified of any important developments. Management Discussion&Analysis reportwhichformpartoftheAnnual Reportisgiven by meansofaseparateAnnexureandisattached tothe DirectorsReportandsenttotheshareholders. 8. GENERAL SHARHOLDERS INFORMATION a) Annual General Meeting: Date&Time Venue b) i) ii) iii) 29thSeptember,2011at12.30p.m. 15Km.Stone,DelhiRoad,Hissar125044
2.
PRAKASH
ISIN No. for equity shares ii)
INE603A01013
Foreign Currency Convertible Bonds (FCCBs):
FCCBsissued by the Company have beenlisted on the Singapore ExchangeSecuritiesTradingLimited(theSGXST) ISIN No. for FCCBs f) Market Price Data : MarketpriceofCompany'sEquityShareofRs.10eachduringtheyear fromApril,2010toMarch,2011atBombayStockExchange(BSE)and NationalStockExchanges(NSE)aregivenbelow: (Rs.) BSE Month April,2010 May, 2010 June,2010 July,2010 August,2010 September,2010 October,2010 November,2010 December,2010 January,2011 February,2011 March,2011 Highest 243.95 236.00 175.90 193.40 191.85 185.20 175.05 155.00 124.30 132.40 105.30 87.50 Lowest 217.55 156.00 139.00 161.50 169.10 153.70 140.80 99.25 97.05 90.10 70.65 72.50 NSE Highest 243.55 228.00 176.05 193.40 192.00 185.00 175.50 155.30 124.80 133.00 105.80 87.50 Lowest 216.15 158.20 147.10 161.20 169.20 154.20 140.15 99.55 97.25 90.60 70.10 72.40 : XS0458122602 and XS0505342864
Financial Calendar for 201112: Firstquarterresults Secondquarterresults Thirdquarterresults upto14thAugust,2011 upto15thNovember,2011 upto15thFebruary,2012
iv) Fourthquarter/Annualresults upto15th/30thMay,2012

g) Distribution of Shareholding (as on 31st March, 2011) No. of Equity No. of % of No. of % of Share Shares held Share Holders Share Holders Shares Holding Upto5000 500110000 1000120000 2000130000 3000140000 4000150000 50001100000 100001above Total h) 49595 3454 1501 473 230 170 319 419 56161 88.31 6.15 2.67 0.84 0.41 0.30 0.57 0.75 100.00 7939827 2709732 2279935 1200886 829771 801214 2292602 116434547 134488514 5.90 m) Outstanding Warrants Convertible in to equity shares 2.01 1.70 0.89 0.62 0.60 1.70 86.58 100.00 n) ThereisnooutstandingConvertibleWarrants. Outstanding Foreign Currency Convertible Bonds (FCCBs) Companyhadissuedintwotranchesviz.500and600ForeignCurrency ConvertibleBonds(FCCBs)ofUS$1,00,000eachon12thOctober,2009 and29thApril,2010respectively. The position of outstanding FCCBs as on 31st March 2011 is as under: Issued on 12.10.2009 29.04.2010 Outstanding FCCBs 171 600 Last date of conversion 17.09.2014* 30.03.2015** l) Listing Fee : TheCompanyhaspaidthelistingfeesuptotheyear201112ofBombay andNationalStockExchangeswherethesharesoftheCompanyare beingtraded.
Shareholding Pattern (as on 31st March, 2011) Category Promoters&PromoterGroup MutualFund/UTI FinancialInstitutions/Banks InsuranceCompanies ForeignInstitutionalInvestors BodiesCorporate NRIs/OBCs Public(Individuals) Total No. of Shares % of Shares Holding 61740503 4348864 3785 739666 16457315 28740691 715527 21742163 134488514 45.91 3.23 0.00 0.55 12.24 21.37 0.53 16.17 100.00 p)
* If converted fully the equity capital is likely to increase by Rs.4.69crores ** If converted fully the equity capital is likely to increase by Rs.11.32crores o) Plant Locations : i) ii) Champa,Distt.JanjgirChampa(Chhattisgarh) Chotia(Chhattisgarh)
iii) Raipur(Chhattisgarh) iv) Kashipur(Uttarakhand) v) Muppandal(Tamilnadu) vi) Koira,Distt.Koenjhar(Orissa) Address for Correspondence and for Share Transfer and related matters: Prakash Industries Ltd. SRIVAN, Bijwasan, NewDelhi110061. Ph. : Fax. : Website : Email : q) (011) 28062115, 28063838 (011) 28062119 www.prakash.com investorshelpline@prakash.com
i)
Registrar and Transfer Agents TheCompanyisdoingtransfer/split/consolidate/transmissionofshares heldbyshareholdersinphysicalformaswellasdemat/rematofshares "inhouse" sinceit hasgotelectronicconnectivitywithbothNational SecuritiesDepositoriesLtd.(NSDL)andCentral DepositoryServices (India)Ltd.(CDSL).
j)
Share Transfer System TheTransferofsharespertainingtosharesinphysicalformareregistered andreturnedwithinthestipulatedtime,ifdocumentsareclearinallrespects.
k)
Dematerialisation of Shares : The Company has arrangements with both National Securities DepositoriesLtd.(NSDL)andCentralDepositoryServices(India)Ltd. (CDSL)andestablishedelectronicconnectivityofsharesforscripless trading.Ason31stMarch,201183.58%ofEquitySharesoftheCompany wereheldindematerializedform.
Whistle Blower Policy TheCompanyhasplacedlockedboxesatappropriateplacesintheplant whereincomplaints/ suggestionscanbedroppedbyanyemployee whichareproperlyconsideredbytheManagement.

Compliance Certificate from the Practising Company Secretary on Corporate Governance
To The Members of PrakashIndustries Limited
We have examined thecompliance of conditions ofcorporate governance by PrakashIndustries Limited, for the year ended31st March,2011 as stipulatedinclause49oftheListingAgreement ofthesaidCompanywithStockExchanges. The compliance of conditions ofcorporate governance is the responsibility ofthe management. Our examination waslimited toprocedures and implementation thereof, adoptedby theCompany forensuring thecompliance ofthe conditions of theCorporate Governance. Itis neither an audit noran expressionofopinionon the financialstatementsoftheCompany. Inour opinionand tothe bestof ourinformation andaccording to the explanationsgiven tous, we certify thatthe Companyhas complied with the conditionsofCorporateGovernanceasstipulated inthesaidclauseoftheListingAgreement. We state that noinvestor grievance is pending for a period exceeding one month against the Company as per the records maintained for the Shareholders/Investors GrievancesCommittee except in casewhich areconstrained bydisputes andlegal impediments. We further statethatsuch complianceisneitheran assuranceas tofuture viability oftheCompanynortheefficiencyoreffectivenesswithwhich the managementhas conductedtheaffairsoftheCompany.
For I.D. Sharma & Associates Company Secretaries
Place : New Delhi th Dated: 30 May, 2011
I.D. Sharma Proprietor C.P. No.7369

ANNEXURES OF THE DIRECTORS REPORT
ANNEXURE A FORMING PART OF THE DIRECTORS REPORT STATEMENT OF PARTICULARS OF EMPLOYEES PURSUANT TO THE PROVISIONS OF SECTION 217(2A) OF THE COMPANIES ACT, 1956 AND FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH, 2011. Sr. Name No. A. Age Qualifications (Years) Experience Designation/ (Years) Natureof Duties Remuneration (Rs.) Dateof Commencement ofEmployment Particulars oflast Employment
Employed throughout the financial year under review and were in receipt of remuneration for the year in aggregate not less than Rs 60,00,000/ per annum : 1. Sh.V.P.Agarwal 55 B.Com. 32 Chairman &Managing 1,61,28,000 01.01.1981 Surya Roshini Director Limited ANNEXURE B FORMING PART OF THE DIRECTORS REPORT PARTICULARS AS REQUIRED UNDER COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO FOR THE YEAR ENDED 31ST MARCH, 2011. CONSERVATION OF ENERGY YourCompany iscommitted toconserve theenergy byusing costeffective andenergy efficientequipments, bywaste heatrecovery fromwaste gases whereverpossible, bybenchmarking theenergy consumptionnorms, bycarrying outregular energyauditsto identifynew areas,where furtherenergy conservationispossible,bypromotinguseofusablesolidwasteasfuelinvariousoperationsandbyoptimizingenergyconsumptioninoperationsusing effectiveoperationandmaintenancepractices,settingenergynormsforeverystageofoperationandregulartrainingofemployeesinenergyconservation practices. InlinewiththeenergypolicyoftheCompany,energyauditiscarriedoutbytheCompanyeveryyearthroughbestenergyauditorslikeConfederationofIndian Industry(CII)withfollowingobjectives *Tocomparetheexistingenergyefficiencylevelsintheplantwithavailablenationalstandardsinsimilarindustry. *Toidentifytheareasrequiringeffortstobeputtoimprovetheenergyefficiencyinvariousoperations. *Tocultivateenergysavinghabitsamongtheemployeesthroughregularenergyauditing. YourCompanyhasalwaysbelievedinmaximumenergyconservationthroughtheparticipationofitsemployeesateverylevelandtoensurethisCompany hasalreadytakensubstantialstepsforcertificationofitsenergymanagementsystemasperstandardEN16001ofBSI. INFORMATION AS PER PRESCRIBED FORM A : Billets Division 20102011 (A) Power and Fuel Consumption 1.Electricity Purchased* UnitsinLacs TotalAmount(Rs./Lacs) Rate/Unit (Rs.) * excluding transferofpowerfromthePower plantoftheCompany. 2. Furnace Oil Quantity(K.Ltrs.) TotalAmount(Rs./Lacs) Average Rate (Rs.) 20092010 Rolling Mills Division 20102011 20092010 Wire Rod Mill Division 20102011 20092010
729 2,124 2.91
704 2,621 3.72
46 173 3.71
69 281 4.07
531 1774 3.34
521 1652 3.17
295 85 28,922
288 73 25,329
576 168 29,171
1,773 390 24,977
3,722 1,005 27,002
3,786 871 25,004

(B) Consumption per unit of production Product
Electricity(KWH) FurnaceOil TECHNOLOGY ABSORPTION A)
Units Ltrs.
Steel Ingot/Billets Division 20102011 20092010 894 857 0.60 0.57
Steel Rolling Mill Division 20102011 20092010 117 97 15 25
Wire Rod Mill Division 20102011 20092010 112 129 11 9
Research & Development (R&D) a) Specific areas in which R&D carried out by the Company:The Company has always emphasized on Research and Development in various areasto makethe products costeffective as wellas todevelopasystemforidentifying areaswherecontinualimprovementcan lead to over all improvement particularly lower cost of production, better productivity, better efficiencies and optimum human resource utilization. Thecompanyhasinitiatedresearchanddevelopmentactivitiesinvariousareasincludingthefollowing: (i) wastewaterrecyclingandreutilizationtoachievetheoveralltargetofzerodischargefromtheplantboundarybyutilizingtheunutilizedwaste waterforwatersprayingonroadsandforrechargeofthegroundlevelsthroughRainwaterharvesting. (ii) improvementinenergymanagementusingenergyefficienttechniques. (iii) rawmaterial/Fuelmixofvariousproducts (iv) plantationofvarietyofspeciese.g.SaalinreclaimedlandatChotiaCoalMines (v) overallcosteffectivenessthroughWCMprojectsplannedandexecutedinhouse b) Benefit derived as a result of above R & D : CompanyhasexperiencedmultiplebenefitsthroughvariousR&Dactivitiesincludingcostreduction,higherproductivity,improvedefficiencyand optimumutilizationofhumanresources. c) Future Plan of Action : CompanyhasinitiatedmanyWCMProjectswhicharedevelopedinhousetoachievecostreductionandhigherproductivityinvariousmanufac turingunitswhichisacontinualprocess.ThecompanyhasalsoplannedtoSixSigmaprojectsforfurtherimprovementinthecosteffectivenessand increaseinproductivity.ApartfromthiswehavealsostrengthenedourR&DcellwhichwillleadtomoreR&Dprojectsinthecompanywith participationofallemployeesonconceptof"5S". d) Expenditure on R & D : ExpenditureonR&Dhasbeenchargedinprimaryheadsofaccounts.
B)
Technology Absorption, Adaption & Innovation : a) Efforts in brief made towards Technology Absorption, Adaption and Innovation: Company had initially setup Sponge Iron Kilns based on SL/RN technology of Lurgi, Germany. Over the time, SL/RN process for making Sponge Iron was reviewed and matched with deficienciesinpresentoperatingsystem.CompanyisundertakingexpansioninSteel&Powercapacities,forwhicheffortsarebeingmade toadopt the bestpossible state ofart technology available. b) Benefits derived as a result of the above efforts: Higher production achieved in Sponge Iron Kilns. c) Particulars of Technology Year of Has Technology Technology Imported Imported Import been fully absorbed. during last 5 years : Nil Nil Nil Nil
FOREIGN EXCHANGE EARNINGS AND OUTGO a) Activities relating to Exports and Export Plans: The Company is making efforts to develop markets for exports. b) Total foreign exchange used and earned: This Year (Rs. in lacs) i) Foreign exchange used ii) Foreign exchange earned 2,817 Previous Year (Rs. in lacs) 1,667

AUDITORS REPORT
To, TheMembersof PRAKASH INDUSTRIES LIMITED 1. WehaveauditedtheattachedBalanceSheetofPrakashIndustriesLtd. asat31stMarch,2011andtheProfit&LossAccountandtheCashFlow StatementoftheCompanyforthe yearendedonthatdate,annexed thereto.ThesefinancialstatementsaretheresponsibilityoftheCompanys management.Ourresponsibilityistoexpressanopiniononthesefinancial statementsbasedonouraudit. 2. We have conducted audit in accordance withAuditing standards generallyacceptedinIndia.ThoseStandardsrequirethatweplanand performtheaudittoobtainreasonableassurancewhetherthefinancial statementsarefreeofmaterialmisstatement.Anauditincludesexamining, onatestbasis,evidencesupportingtheamountsanddisclosuresinthe financialstatements.Anauditalsoincludesassessingtheaccounting principlesusedandsignificantestimatesmadebythemanagement,as wellasevaluatingtheoverallfinancialstatementpresentation.Webelieve thatourauditprovidesareasonablebasisforouropinion. 3. AsrequiredbytheCompanies(AuditorsReport)Order,2003,issued by the Government of India in terms of section 227(4A) of the CompaniesAct,1956andonthebasisofsuchchecksofthebooksand recordsoftheCompanyasweconsideredappropriateandaccording to the information and explanations givento us,we annexhere toa statementonthemattersspecifiedinparagraphs4&5ofthesaidorder. 4. As statedin Note No.6, in terms ofa Courtorder, thedeferred tax liability for the year has been adjusted against Securities Premium account.Had thedeferred taxliabilitiesfor theyear beenaccounted for pursuant to Accounting Standard22Accounting for Taxes on Income, profit after tax for the year would have been lower by Rs.302.30lacs c) TheBalance Sheet,the Profit& LossAccount and Cash Flow Statementdealtwithbythisreportareinagreementwiththebooks ofaccount d) Subjectto our comments in para 4above, in our opinion, the BalanceSheet,Profit&LossAccountandCashFlowStatement dealtwith bythis report, comply withthe mandatoryAccounting Standards, referredto insubsection(3C)ofSection 211of the CompaniesAct,1956,totheextentapplicable. e) OnthebasisofwrittenrepresentationsreceivedfromtheDirectors as on 31st March, 2011 and takenon record by the Board of Directors,wereportthatnoneoftheDirectorsisdisqualifiedason 31stMarch,2011frombeingappointedasaDirectorintermsof Clause(g)ofsubsection(1)ofSection274oftheCompaniesAct, 1956. Subjecttoourcommentsinpara4aboveandtheirconsequential impactontheprofitfortheyear,inouropinionandtothebestof ourinformationandaccordingtotheexplanationsgiventous,the saidaccountsreadtogetherwiththesignificantaccountingpolicies and the notes thereon give the information required by the CompaniesAct,1956 inthemannersorequiredand giveatrue andfairviewinconformitywiththeaccountingprinciplesgenerally acceptedinIndia (i) inthecaseoftheBalanceSheet,ofthestateofaffairsof theCompanyasat31stMarch,2011 (ii) inthecaseoftheProfit&LossAccount,oftheprofitforthe yearendedonthatdateand (iii) inthecaseoftheCashFlowStatement,oftheCashFlowsfor theyearendedonthatdate.
5. AsstatedinNoteNo.1(l),theprovisionoftaxmadebytheCompanyis subjecttoassessmentbythetaxauthoritiesandsetoffofMATcredit entitlementissubjecttoavailabilityoftaxableincomeoftheCompany infuture,aspertheprovisionsoftheIncomeTaxAct,1961. 6. Furtherto our commentsin theAnnexurereferredtoin Paragraph3 above,wereportthat:
a) Wehaveobtainedalltheinformationandexplanations,whichto the best of our knowledge and belief were necessary for the purposesofouraudit NewDelhi
th b) Inouropinion,properbooksofaccountasrequiredbylawhave 30 May,2011
for CHATURVEDI & PARTNERS Chartered Accountants RegistrationNo.307068E
beenkeptbytheCompany,sofarasappearsfromourexamination ofthosebooks
(L.N. Jain) Partner M.No. 72579

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF PRAKASH INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2011. 7. In our opinion, the Company has an internal audit system commensuratewiththesizeandnatureofitsbusiness.
8. TheCentralGovernmenthasprescribedmaintenanceofcostrecords under Section 209(1)(d) of the CompaniesAct,1956 in respect of 1. (a) The Company has maintained proper records showing all certain manufacturing activities of the Company. We have been particulars including quantitative details and situation of fixed informed that such accounts and recordshave beenmaintained by assetsonthebasisofavailableinformation. the Company. (b) As explained to us, the fixed assets have been physically 9. (a) AsperrecordsoftheCompanyandaccordingtotheinformation verified by the management in accordance with a phased and explainations given to us and further read together with programme,which in our opinionis reasonable having regard Note No.1(l)(i) regarding payment of MAT,in our opinion, the tothe sizeof thecompany andthe natureof its assets. During Company is generally regular in depositing the undisputed the year, no material discrepancies were noticed by the statutoryduesincludingProvidentFund,InvestorEducationand managementonsuchverification. Protection Fund, Employees State Insurance, Income Tax, Sales Tax, EntryTax, WealthTax, ServiceTax, Custom Duty, (c) Fixedassetsdisposedoffduring theyear,inouropinion,donot ExciseDuty,Cessoranyothermaterialstatutoryduesapplicable constitute a substantialpartofthe fixedassetsof the Company to it with theappropriate authorities. There are no undisputed andgoingconcernstatusof theCompanyisnotaffected. statutorydues attheyear endoutstandingforaperiod ofmore 2. (a) The inventory, except stock in transit or lying with the third thansixmonths. partieshas beenphysically verified bythe managementduring (b) According to the information and explanations given by the theyear. Forstockslying withthethird partiesatthe yearend, management and relied upon by us, there are following written confirmations have been obtained.In our opinion, the statutorydues whichhavenot beendepositedby the Company frequencyof verificationis reasonable. on account of some dispute and same are pending before (b) Inouropinionandaccordingtotheinformationandexplanations appropriate authorities: given to us, theprocedures ofphysical verificationof inventory followed by the management are reasonable andadequate in relation to the size of the Company and the nature of its business. (c) Inouropinionandaccordingtotheinformationandexplanations given to us, the Company is maintaining proper records of inventory.The discrepancies noticedon physical verification of inventory ascompared to the book records were not material andhave beenproperly dealtwith inthe booksof account. 3. The Company has neither granted nor taken any loan, secured or unsecured,to/fromcompanies,firmsorotherpartiescoveredinthe registermaintained undersection301of theCompaniesAct,1956.
Nature of the dues Amount (Rs. in lacs) Forum where the dispute is pending
Excise Duty
189.93 AppellateAuthorityCommissioner 6.29 AppellateAuthorityDy.Commissioner 0.11 AppellateAuthorityAsst.Commissioner 33.95 CESTAT, New Delhi 5.09 AppellateAuthorityJt.Commissioner 28.56 AppellateAuthorityCommissioner
4. In our opinion and according to the information and explanations Energy Cess 531.00 SupremeCourtofIndia giventous,there isadequate internalcontrol systemcommensurate with thesize of the Company and thenature of its businessfor the 10. TheCompany has no accumulated losses as at 31st March, 2011. TheCompanyhasnotincurredcashlossesduringthefinancialyear purchases of inventory and fixed assetsand for the saleof goods. coveredbyourauditandintheimmediatelyprecedingfinancialyear. During the course of our audit, we have not come across any continuing failure to correctmajorweaknesses in theinternal control 11. Basedonourauditproceduresandaccordingto theinformationand explanations given to us, we are of the opinion that the Company system. hasnotdefaultedinrepayment ofdues toanyfinancialinstitutionor 5. Baseduponthe auditproceduresappliedbyusandaccordingtothe bank duringthe year. information andexplanations givento us, there are no transactions 12. According to the information and explanations given to us, the which are required to be entered in the register maintained under Company has not granted loans and advances on the basis of Section301of theCompaniesAct,1956. securitybywayofpledgeofshares,debenturesandothersecurities. 6. In our opinion and according to the information and explanations given to us, the Company hasnot acceptedany deposits from the 13. In our opinion and according to the information and explanations given tous, theprovisions of any special statute applicableto chit publicduringtheyearwithinthemeaningoftheprovisionsofSection fund/ nidhi / mutualbenefitfund/ societiesarenotapplicable to the 58A and 58AA of the CompaniesAct, 1956 and the Companies Company. (Acceptanceof Deposits)Rules, 1975.

14. In our opinion and according to the information and explanations giventous,properrecordshavebeenmaintainedofthetransactions and contracts and timely entries have been made in respect of Companysdealings initsinvestments. The investments held by the Companyas at31st March,2011 arein itsown name. 15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others frombanks orfinancialinstitutionsduringtheyear. 16. In our opinion and according to the information and explanations given to us, on an overall basis, the term loans taken by the Company during the year have been applied for the purpose for whichtheywereobtained,otherthantemporarydeploymentpending application. 17. Accordingtotheinformationandexplanationsgiventousandonan overallexaminationofBalanceSheetoftheCompany,weareofthe opinion that the Company has not raisedany funds on shortterm basis, whichhave beenused forlongterm investments. 18. The Company has not made any preferential allotment of shares duringtheyeartothepartiesandcompaniescoveredintheRegister maintained underSection301 oftheCompanyAct,1956. 19. TheCompanyhasnotissuedanydebenturesduringtheyearunder review. 20. The Company has not raised any money by way of public issue during the yearunder review. 21. During the course of our examination of the books andrecords of the Companycarried outin accordancewith thegenerally accepted auditing practices in India and according to the information and explanationsgiven tous,wehaveneithercomeacrossanyinstance of material fraud on or bythe Company,noticed or reported during the year, nor have we been informed of such case by the management.
for CHATURVEDI & PARTNERS Chartered Accountants RegistrationNo.307068E
New Delhi
th 30 May,2011
(L.N. Jain) Partner M.No. 72579

BALANCE SHEET AS AT 31ST MARCH, 2011
Schedule Rs. SOURCES OF FUNDS Shareholders Funds : ShareCapital EquityShareWarrants Reserves & Surplus Loan Funds : Secured Loans Unsecured Loans Deferred Tax Liabilities (Net) APPLICATION OF FUNDS Fixed Assets GrossBlock Less:Depreciation Add:Capitalworkinprogress As at 31st March, 2011 Rs. Asat31stMarch,2010 Rs. Rs.
1 2
1,34,48,85,140 15,84,29,85,106 3,29,05,64,500 3,47,55,18,000
17,18,78,70,246 6,76,60,82,500 80,20,64,513 24,75,60,17,259
1,21,69,37,140 65,18,35,000 12,43,92,33,163 1,02,97,58,020 1,27,16,34,000
14,30,80,05,303 2,30,13,92,020 77,18,34,432 17,38,12,31,755
4 18,26,41,05,332 7,80,19,03,866 10,46,22,01,466 8,76,53,02,532 17,82,85,15,313 7,08,18,36,666 10,74,66,78,647 3,02,62,58,049
19,22,75,03,998
13,77,29,36,696
Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash&BankBalances LoansandAdvances
5 6 1,62,38,75,030 86,43,36,660 63,00,40,490 3,98,37,87,408 7,10,20,39,588 7

1,04,69,54,542 1,29,20,04,216 2,33,89,58,758
27,02,31,670 1,01,89,16,405 82,00,93,189 1,01,78,47,554 2,36,95,96,877 5,22,64,54,025
2,21,83,230
Less : Current Liabilities & Provisions CurrentLiabilities Provisions Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted)
1,02,32,63,562 78,10,82,602 1,80,43,46,164
4,76,30,80,830 49,52,00,761 24,75,60,17,259
3,42,21,07,861 16,40,03,968 17,38,12,31,755
Significant Accounting Policies and Notes on Accounts
16
As per our report of even date attached For Chaturvedi & Partners Chartered Accountants For and on behalf of the Board (L.N. Jain) Partner NEW DELHI 30th May, 2011 Manoj Agarwal Company Secretary Vipul Agarwal Whole time Director G.L.Mohta Whole time Director V.P. Agarwal Chairman & Managing Director

PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH, 2011 Schedule INCOME Sales Less:Excise duty NetSales Otherincome Liabilitieswrittenback EXPENDITURE RawMaterialconsumed (Increase)/Decreasein stocks Manufacturingand operatingexpenses Personnel expenses Administrativeexpenses Sellinganddistributionexpenses Financial expenses Depreciation Exceptionalitems Expensesamortised This Year Rs. 18,21,14,86,407 1,57,05,31,843 16,64,09,54,564 8,73,27,843 16,72,82,82,407 10,08,86,31,331 (2,04,61,808) 1,88,17,85,986 77,79,31,825 20,91,08,525 29,87,38,095 5,69,64,481 67,25,02,246 2,69,61,268 13,99,21,61,949 Profit before Tax Provisionfor Tax CurrentTax WealthTax Tax forearlier years MinimumAlternateTaxCreditAdjustment Net Profit for the year Balance brought forward Profitavailableforappropriation APPROPRIATIONS Transferto GeneralReserve ProposedDividendon EquityShares Taxon Dividend Balance Carried to Balance Sheet 2,73,61,20,458 54,53,22,488 62,428 36,36,974 (48,36,89,824) 2,67,07,88,392 13,16,42,057 2,80,24,30,449 2,50,00,00,000 13,44,88,514 2,18,17,400 14,61,24,535 2,80,24,30,449 PreviousYear Rs. 16,90,76,41,994 1,23,10,74,185 15,67,65,67,809 3,04,83,996 21,37,50,000 15,92,08,01,805 8,95,10,35,446 (4,49,28,442) 1,95,12,25,599 68,07,15,476 20,07,83,729 36,67,23,941 25,48,00,153 56,78,66,582 23,30,58,236 2,69,61,268 13,18,82,41,988 2,73,25,59,817 46,43,98,541 41,120 81,82,037 (40,16,78,342) 2,66,16,16,461 7,00,25,596 2,73,16,42,057 2,60,00,00,000 13,16,42,057 2,73,16,42,057
10 11 12 13 14 15
Significant Accounting Policies and Notes on Accounts 16
SCHEDULES
SCHEDULE 1 SHARE CAPITAL
As at 31st March, 2011 Rs.
Authorised : 170000000(150000000)EquitySharesofRs.10each Nil(2000000)PreferenceSharesofRs.100each Issued , Subscribed & Paidup : Equity 134488514(121693714)EquitySharesofRs.10each fullypaidup (ReferNoteno.11) 1,34,48,85,140 1,21,69,37,140 1,70,00,00,000 1,70,00,00,000
Asat31stMarch,2010 Rs.
1,50,00,00,000 20,00,00,000 1,70,00,00,000
1,34,48,85,140
1,21,69,37,140
SCHEDULE 2 RESERVES AND SURPLUS

General Reserve AtOpening TransferfromProfit&LossAccount Securities Premium Account AtOpening Received duringthe year FCCB Issue expenses DeferredTax(ReferNoteno.6) Capital Redemption Reserve Capital Reserve Revaluation Reserve Surplus in Profit & Loss Account

9,10,00,00,000 2,50,00,00,000 1,45,75,24,259 1,15,71,68,000 (10,98,08,009) (3,02,30,081)
Asat31stMarch,2010 Rs.
6,50,00,00,000 2,60,00,00,000 67,18,41,015 99,51,68,000 (14,00,56,356) (6,94,28,400)
11,60,00,00,000
9,10,00,00,000
2,47,46,54,169 8,00,00,000 2,78,58,845 1,51,43,47,557 14,61,24,535 15,84,29,85,106
1,45,75,24,259 8,00,00,000 2,78,58,845 1,64,22,08,002 13,16,42,057 12,43,92,33,163
SCHEDULE 3 LOAN FUNDS

As at 31st March, 2011 Rs. Asat31stMarch,2010 Rs.
SECURED Term Loans: FromBanks FromOthers Working Capital Loan from Bank UNSECURED ForeignCurrencyConvertibleBonds (ReferNoteno.19)
50,42,31,652 2,58,78,67,979 19,84,64,869 3,29,05,64,500 3,47,55,18,000 3,47,55,18,000
49,70,409 1,02,47,87,611 1,02,97,58,020 1,27,16,34,000 1,27,16,34,000
1 .
Term loans are secured by mortgage of all immovable properties of the Company, both present and future and are also secured by way of hypothecation of the movable properties of the Company including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts), subject to prior charge of the Companys banker on specified movables for working capital requirements, ranking pari passu in all respects with existing charges and personal guarantee of Chairman & Managing Director.
2 .
WorkingCapital loan from bank is secured by hypothecation of raw materials, consumables stores and spare parts, stock in process, finished goods, book debts and by personal guarantees of Chairman & Managing Director and Joint Managing Director of the Company. Further they are also secured by way of pari passu first charge on all the immovable properties of the Company. TermLoansfrombanksandothersinclude Rs 31,91,925(Rs49,70,409) and Rs 78,67,979(Rs39,54,278)respectivelysecuredagainstthe vehiclesfinancedbytheconcernedlenders.
3 .
SCHEDULE4FIXEDASSETS
DEPRECIATION
Sales/ Adjustment Rs. 2745910 12191858 75086709 21650 38110158 5124571 95170698 311366262 8765302532 18264105332 7081836666 800362691 245614 231280 2052 53762433 18072787 4725480 19376897 2896649 2853238 80295491 49283896 22969358 1752654 3221 4439550 3386403 405064 15634454244 6535326349 738750610 74955758 7199121201 3791467 24718791 22273546 19945029 233332 7801903866 1911882054 482473592 51830182 2483274 531820500 512069110 512069110 1380061554 8435333043 648083 24565105 15836612 33817404 12282 10462201466 8765302532 59858273 59858273 Rs. Rs. Rs. Rs. Rs. Rs. Rs. 31.03.2011 31.03.2010 year 31.03.2011 31.03.2011 As at Total upto For the Adjustment Total upto As at As at 31.03.2010 Rs. 59858273 369992597 1307391541 8949163315 719643 19343300 15744829 24450815 14334 10746678647 3026258049
GROSSBLOCK
NETBLOCK
Particulars
As at
Additions
31.03.2010
Rs.
Land (Lease hold)
59858273
Land (Free hold)
369992597
144822423
Building
1789865133
134208779
Plant & Machinery 333504
15484489664
225051289
Moulds & Dies
4106046
Furniture & Fixtures
42312658
6992888
Office Equipment
35121726
2988432
Vehicles
42523602
16363402
Miscellaneous Assets
245614
17828515313
530760717
Capital WorkinProgress 3026258049
6050410745
(Including Pre operative expenses) 406536960 2436517035 20854773362 27029407864 7081836666 6369729961 800362691 712593672 80295491 486967 7801903866 7081836666 19227503998 13772936696 13772936696
Total
20854773362
6581171462
Previous Year
17654536940
5636753457
(Refer Note no. 12)

SCHEDULE 5 INVESTMENTS
Long Term Investments, NonTrade (At cost) Unqu oted Investment in Joint Ventures MadanpurCoalBlockPrivateLimited 19,71,323(19,71,323)EquitySharesofRs.10eachfullypaidup FatehpurCoalMiningCompanyLimited 46,150(Nil)EquitySharesofRs.10eachfullypaidup Investment in Shares (ReferNoteno.13) Current Investments, NonTrade (At lower of cost and fair value) Investments in Units of Mutual Funds TempletonIndiaUltraShortBondFund 99,94,100(Nil)UnitsoffacevalueofRs.10each IDFCCash Fund 86,18,708(Nil)UnitsoffacevalueofRs.10each As at 31st March, 2011 Rs.
1,97,13,230 4,61,500
1,97,13,230 24,70,000
10,00,56,940 15,00,00,000 27,02,31,670 2,01,74,730 25,00,56,940 27,02,31,670
2,21,83,230 2,21,83,230 2,21,83,230
Aggregate Value of Investments Unquoted Mutual Funds
SCHEDULE 6 CURRENT ASSETS, LOANS & ADVANCES

As at 31st March, 2011 Rs. Inventories (As taken, valued and certified by the Management)(Refer Note no. 1(d) ) Stores,Spares&Fuels RawMaterials RawMaterialsintransit FinishedProducts Work In Process Scrap & Waste Sundry Debtors (Unsecured, considered good unless otherwise stated) Debtsoversixmonths Less:Provisionfordoubtfuldebts Others Cash & Bank Balances Cash in hand Balances with scheduled banks in : Current accounts Deposit accounts (Deposits of Rs. 12,19,72,905 pledged as security, previous year Rs. 5,04,93,985) Loans and Advances (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Less:Provisionfordoubtfuladvances Securitydeposits Advance Incometax (Refer Note no.9) MAT credit entitlement (Refer Note no.1(l)(ii)) Claims recoverable Interest accrued on deposits
22,77,44,795 85,96,55,597 18,74,98,023 31,83,94,329 2,22,77,966 83,04,320 1,62,38,75,030 17,38,27,922 (29,62,315) 69,34,71,053 86,43,36,660
62,51,673 50,10,67,464 12,27,21,353 63,00,40,490
22,85,09,132 40,77,61,083 5,71,51,593 28,57,30,397 3,05,73,992 91,90 ,208 1,01,89,16,405 15,19,50,190 (28,38,850) 67,09,81,849 82,00,93,189
46,46 ,001 16,37,06,481 84,94,95,072 1,01,78,47,554
1,80,18,73,439 (3,71,625) 11,01,29,301 47,92,10,369 1,58,55,61,863 38,39,611 35,44,450 3,98,37,87,408
91,10,94,476 (3,09,252 ) 11,23,96,193 23,40,61,962 1,10,18,72,039 42,12 ,566 62,68 ,893 2,36,95,96,877

SCHEDULE 7 CURRENT LIABILITIES & PROVISIONS
As at 31st March, 2011 Rs. Current Liabilities Sundry Creditors (Refer Note no. 5) Trade/Security Deposits InterestAccrued but not due Provisions For Taxation For Gratuity and Leave Encashment For Proposed Dividend on Equity Shares For Tax on Dividend
95,55,16,041 8,24,01,720 90,36,781 1,04,69,54,542 1,01,79,03,066 11,77,95,236 13,44,88,514 2,18,17,400 1,29,20,04,216 2,33,89,58,758
95,99,41,368 6,33,22,194 1,02,32,63,562 69,57,09,930 8,53,72,672 78,10,82,602 1,80,43,46,164
SCHEDULE 8 MISCELLANEOUS EXPENDITURE

As at 31st March, 2011 Rs. Miscellaneous Expenditure (To the extent not written off or adjusted) Mine Development Expenditure (Refer Note no. 1(i))
49,52,00,761 49,52,00,761
16,40,03,968 16,40,03,968
SCHEDULE 9 OTHER INCOME

This Year Rs.
Interest : On fixed deposits with banks(Tax deducted at source Rs . 36,46,693 (Rs. 14,23,964)) On others(Tax deducted at source Rs 8,72,716 (Rs.3,84,789)) Rent received Miscellaneous income Provisions no longer required written back Profit on current investment(NonTrade) Profit on sale of fixed assets Previous Year Rs.
1,84,85,789 57,21,272 5,45,750 7,88,918 4,50,66,127 99,36,069 67,83,918 8,73,27,843
71,63,037 1,22,93,492 5,00,500 8,41,079 88,58,240 8,27,648 3,04,83,996
SCHEDULE 10 (INCREASE) / DECREASE IN STOCKS

Rs. This Year Rs. Rs. PreviousYear Rs.
Stock in trade (At close) Finishedproducts Workinprocess Scrapandwaste Stock in trade (At opening) Finishedproducts Workinprocess Scrapandwaste ExciseDutyonStockmovement 28,57,30,397 3,05,73,992 91,90,208 32,54,94,597 (2,34,82,018) 30,20,210 (2,04,61,808) 25,35,44,366 1,54,47,123 41,13,307 27,31,04,796 (5,23,89,801) 74,61,359 (4,49,28,442) 31,83,94,329 2,22,77,966 83,04,320 34,89,76,615 28,57,30,397 3,05,73,992 91,90,208 32,54,94,597
SCHEDULE 11 MANUFACTURING AND OPERATING EXPENSES

Power&fuel Mining expenses Stores&spares Repairsto: Machinery Building Others 38,01,37,899 3,00,25,585 14,68,709 41,16,32,193 45,66,38,352 3,46,29,664 14,28,83649,26,96,852 63,66,32,421 49,10,92,316 34,24,29,056 66,93,37,236 43,75,03,745 35,16,87,766
1,88,17,85,986
1,95,12,25,599
SCHEDULE 12 PERSONNEL EXPENSES

This Year Rs. Salaries,wages&benefits Contributiontoprovident&otherfunds Directorsremuneration Employeeswelfare expenses 67,39,74,381 4,18,71,663 2,88,58,089 3,32,27,692 77,79,31,825 PreviousYear Rs. 59,06,51,377 3,36,92,328 2,82,92,029 2,80,79,742 68,07,15,476
SCHEDULE 13 ADMINISTRATIVE EXPENSES

Insurance Rates&taxes Travelling& Conveyance Vehiclemaintenance Auditorsremuneration: Auditfee TaxAuditfee Legal&professionalcharges Miscellaneous expenses Provisionfordoubtfuldebtsandadvances Rent Directorssittingfees 38,43,287 2,09,82,796 4,17,50,890 1,47,97,635 25,00,000 7,00,000 20,00,000 6,00,000 28,84,163 1,63,86,417 4,68,23,926 1,33,16,252
32,00,000 4,10,70,474 7,60,59,746 1,85,838 63,47,859 8,70,000 20,91,08,525
26,00,000 5,02,15,899 6,12,21,789 63,396 61,31,887 11,40,000 20,07,83,729
SCHEDULE 14 SELLING AND DISTRIBUTION EXPENSES

Advertisement Packing& forwardingcharges Salespromotion Discount&rebate Commission 42,80,634 11,15,05,264 13,13,907 6,46,39,339 11,69,98,951 29,87,38,095 59,05,006 15,60,11,282 9,86,639 4,64,55,070 15,73,65,944 36,67,23,941
SCHEDULE 15 FINANCIAL EXPENSES

Interest: Onfixedloans Onothers Bank charges
3,24,13,158 2,03,43,544
5,27,56,702 42,07,779 5,69,64,481
22,36,64,284 2,66,88,477
25,03,52,761 44,47,392 25,48,00,153
CASH FLOW STATEMENT

This Year A. Cash Flow From Operating Activities :
(Rs.inlacs) Previous Year
Net Profit as per Profit & Loss Account Adjustments for Exceptional items Provisions/Liabilities Written Back Provision for tax Provision for gratuity and leave encashment
26708 (451)
653 324 2 6725
26616 2331 (2138) 7 0 9 1 0 2 1 5679 269 (208) (8)
Provision for doubtful debts and advances Depreciation Expenses amortised

Interest & Other Income Profit on sale of fixed assets Profit on Investments Financial expenses
269 (255) (68) (99) 570 7670 34378 (9325) (6050) 597 (14778) 19600 4720 570 14310
89) 2548
9196 35812
Operating Profit before working Capital changes Adjustmentsfor Trade & Other receivables Inventories Trade payables & provisions
547 (1986) 1080 (359) 35453 2367 6078 27008
Cash generated from operations Taxes Paid Financial expenses paid

Net Cash from operating activities
B.
Cash Flow From Investing Activities: Sale of fixed assets Purchase of fixed assets Mine development expenditure Interest & other Income received
Investment in Group companies & Joint venture Purchase/sale of investment
217 (62414) (3582) 382 20 (2501) (67878)
19 (32018) 264 (31735)
Net cash used in investing activities

C. Cash Flow From Financing Activities :
25500 1582
21 88 9 6 51 8
Proceeds from issue of FCCBs (Net of Expenses) Proceeds from issue of shares/warrants Proceeds from loans (Net)
22608
(16633)
Net Cash from financing activities
49690
11774
Net Changes in Cash & bank equivalents (A+B+C)
(3878)
7047
Opening balance of Cash & bank equivalents
10178
3131
Closing balance of Cash & bank equivalents
6300
10178
Notes : a) b) c) d) e) f)
The Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard3 Cash Flow Statements Cash and bank equivalents include balances with the banks on margin accounts, which are not available currently for use by the Company. Provision for tax is net of amount of MAT Credit entitlement.
Purchase of fixed assets include movement of capital work in progress. Proceeds from issue of FCCBs are net of issue expenses. Previous years figures have been regrouped/rearranged wherever considered necessary, to confirm to this years presentation.

SCHEDULE 16 NOTES ON ACCOUNTS
1. SIGNIFICANT ACCOUNTING POLICIES Thefinancialstatementshavebeenpreparedinaccordancewiththehistoricalcostconventionandgenerallyacceptedaccountingprinciples. Asummaryoftheimportantaccountingpolicies, whichhavebeenfollowed consistentlyissetout below: (a) Basis of Accounting i) Accrualmethod of accountingis followedwithregard to incomeandexpenses. ii) Sales are inclusive of excise duty and exclusive of sales tax/value added tax, returns and trade discounts. iii) Raw material consumption is net of sale and the profit / loss on sale is charged to the consumption account. Consumption quantities exclude materialsusedasfuels/salesanddisposals. iv) Insurance claims, duty drawback on exports and other claims and refunds have been accounted for where there is reasonable certaintywithregardtotheultimatecollection. (b) Fixed Assets i) FixedAssetsarestatedatCostwhichisnetofCenvat/TaxCredit,inclusiveoffreight,duties,taxesandotherincidentalexpenses relating to acquisition and installation except certain revalued assets which are stated at revalued amount less accumulated depreciation. ii) Expenditure incurred during the period of construction are carried forward as CapitalWork in Progress and on completion, thecostsareallocatedtotherespectiveFixedAssets. iii) Preoperative expenditure comprising of revenue expenses incurred in connection with project implementation during the period upto commencement of commercial production are treated as part of project costs and are capitalized. Such expenses are capitalizedonly if the project towhich theyrelate involve substantialexpansion of capacity orupgradation. iv) In order to reflect the book value of the fixed assets of the Company to conform to the present replacement cost, Plant & Machinery of certain divisions as on 31st March, 2005 have been revalued by an approved valuer using the standard indices and accordingly amount has been transfered to Revaluation Reserve. (c) Depreciation i) Depreciationisprovidedfor at the ratesandinthemanner prescribedinScheduleXIVtothe CompaniesAct,1956 onStraight Linemethod. ii) Depreciation on Plant & Machinery of certain divisions which were revalued as on 31st March, 2005 has been provided on straightline methodatratesbasedon theusefullifeascertifiedbyvaluer. iii) DepreciationontheincrementalamountaddedtothecostoffixedassetsonRevaluationisbeingadjustedagainsttheRevaluation reserveonthebasisofestimatedremainingusefullifeoftheassets. (d) Inventory Raw Materials and Stores & spares are valued at lower of cost, computed on FIFO basis, and net relisable value. Finished goods & work in process are valued at lower of cost or net realisable value and scrap & waste at estimated realisable value. Cost of raw materials and Stores & spares includes transport and handling costs and are net of cenvat/vat credits wherever applicable. The cost of finished goods includes materials, labour and related factory overheads including depreciation. Excise duty is included in finished goodsvaluation, whereapplicable.Thematerial intransit are valued atcost. (e) Foreign Currency Transactions Foreign Currency Transactions are recorded in the accounts at the rates existing at the time of transaction and any exchange difference arising at the time of realisation is dealt within the Profit & LossAccount. Outstanding Foreign Currency monetary items are translated at the year end rates. The amount of Exchange rate difference credited to Capital work in progress during the year is Rs280.50 lacs (Rs 22.06 lacs).

(f) Investments Current Investments are stated at lower of cost and fair value. Any reduction in the carrying amount and any reversal of such reduction are charged or credited to the Profit and Loss Account. Long term Investments are stated at cost. Provision is made to recognizea decline,otherthan temporary,in thevalueof suchinvestments. (g) Employee Benefits In respect of Defined Contributions Scheme, Contribution to Provident Fund & Family Pension and Employee State Insurance Scheme are charged totheProfit &Lossaccount asincurred. In respect ofDefined Benefit Schemes, thepost retirement benefits such asgratuity, leave encashment andother retirement benefits are accounted for, based on valuations, as at the Balance Sheet date, made by an independentActuary. Actuarial gains/losses are chargedto Profit&LossAccountandarenotdeferred. (h) Borrowing Costs The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised on thatasset.Otherborrowingcostsarechargedtorevenue account.Theamount ofborrowing costchargedtoCapitalwork inprogress during the year is Rs 3,327.79 lacs (Rs 443.95 lacs) (i) (j) Miscellaneous Expenditure Expenditure incurred on development of a Coal mine isbeing written off over a period of 10 years. Segment Reporting Policies Revenue and expenses are identified to segments on the basis of their relationship to the operative activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, are included under Unallocable Expenditure/Income. (k) Earnings Per Share (EPS) Basic earning per share is computed by dividing net profit or loss for the period attributable to equity share holders by weighted average number of equity shares outstanding during the period. The Diluted earning per share is calculated on the same basis as BasicEarningpershare,afteradjustingfortheeffectsofpotential dilutiveequityshares. (l) Taxes on Income i) Tax expense for the year comprise of current and deferred tax. Current Tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws. The Company has opted for tax exemption under section 80I in respect of profits of Power and PVC divisions as per the provisions of the Income Tax Act, 1961. The amount of exempted profit considered by the Company while making provision for its tax liability is subject to assessment by the concerned tax authorities. Deferred tax assets and liabilities are recognised for future tax consequences attributable to the timing differences betweenthetaxableprofitandtheprofitas per the accounts. Deferredtaxassetsandliabilities are measured usingthetaxrates andtaxlawsthathave beenenacted orsubstantively enactedbytheBalanceSheet date.Deferredtaxassetsarenotrecognised unless in the opinion of the management there is virtual certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised. The effect on deferred tax assets and liabilities of a change in tax rate is recognised in the year of change. Deferred tax assets/liabilities are reviewed at each balance sheet date. Pursuant to the approval of the shareholders and Honble Punjab & Haryana High Courts order dated 23rdAugust 2007 Deferred tax liabilities (net) from the year 200708 and onwards are being met from Securities PremiumAccount. The taxable income of the Company being lower than the book profits under the provisions of the Income Tax Act, 1961, the Company is liable to pay Minimum Alternate Tax (MAT) on its income. As per the legal opinion obtained by the Company and various court judgements, due date forsubmission ofreturn has beenconsidered asdue datefor paymentof MATby theCompany. ii) Consideringthefutureprofitabilityandtaxablepositioninthesubsequentyears,theCompanyhasrecognizedMinimumAlternate Tax(MAT) credit as an asset by crediting the Profit & Loss Account and including the same under Loans & Advances in accordance with the Guidance note on Accounting for credit available in respect of MinimumAlternate Tax under Income Tax Act1961issuedbytheInstituteofCharteredAccountantsofIndia.

(m) Impairment Of Assets When there is an indication that an asset is impaired, the recoverable amount is estimated and the impairment is recognised to the extent carrying amount exceeds its recoverable amount. (n) Provisions and Contingencies Provisions involving substantialdegree ofestimation inmeasurement are recognized when there isa presentobligation as a resultof past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed inthenotes. Contingentassetsareneitherrecognizednordisclosedinthefinancialstatement. 2. Contingent Liabilities not provided for in respect of: This year (Rs. in lacs) Guarantees issuedby bankson behalf ofthe company Disputed demandsof Excise Duty/SalesTax/Electricity dues/Leaserentals etc. (Amount paid there against Rs.384.24 lacs (Rs.394.37 lacs)) 3. 4. Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor (Advances paid there against Rs.7,686.05 lacs (Rs.4,522.83 lacs)) 2,620.49 2,517.36 Previous year (Rs. in lacs) 996.84 2,681.75
53,399.64
38,992.38
In the opinion of the management, the Current Assets, Loans andAdvances have a value on realisation in the ordinary course of business atleast equalto theamount atwhich theyare statedin theBalance Sheet.The provisionfor depreciationand allknown liabilitiesis adequate, neither excess nor short than reasonably necessary. TheCompanyisintheprocessofidentifyingtheSuppliersregardingtheirstatusundertheMicro,SmallandMediumEnterprisesDevelopment Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under thesaidActhavenotbeenmade. In termsof theorderdated23rdAugust 2007of the HonblePunjab& Haryana HighCourt,thenet deferred tax liability computedinterms of the Accounting Standard 22 Accounting for Taxes on Income amounting to Rs. 302.30 lacs has been adjusted against Securities PremiumAccount.Consequently,theprofitaftertaxishigherbythesaidamount. Advance recoverable in cash or in kind or for value to be received include i) Asumof Rs. 3,161.33 lacs(Rs.2,386.20 lacs)fromgroupcompaniesinwhich directorsareinterested.Maximumamount outstanding during the year Rs. 5087.95 lacs (Rs. 2,583.93 lacs).
5.
6.
7.
ii) A sum of Rs. 6.20 lacs (Rs. 0.04 lacs) paid to Madanpur (North) Coal Co. Pvt. Ltd., a joint venture Company. Maximum amount outstanding during the year Rs. 6.20 lacs (Rs.0.04 lacs). iii) A sum of Rs. 84.84 lacs(Rs.Nil) paid toFatehpur CoalMining Co.Pvt. Ltd., a jointventure Company.Maximum amount outstanding during the year Rs.84.84 lacs (Rs.Nil). 8. The company has made investment in the share capital of following joint venture companies formed for the purpose of developing coal blocksallottedtotheCompanyinconsortiumwithothers: Particulars As at 31st March, 2011 (Rs in lacs) NameofJointVenture % Holding Assets Liabilities Contingent Capital (InIndia) Liabilities Commitments Madanpur (North) 20.67(20.67) 986(957) 986(957) 3312(3310) Nil(Nil) CoalCo. Pvt.Ltd *Fatehpur Coal Mining 38.46(38.46) *(17) *(17) *(Nil) *(Nil) Co.Pvt.Ltd Above figures are as certified by the management. The Figures in bracket are for previous year. *Figuresfor the current yearare not available sinceannual accounts are yetto be finalized. Income Nil(Nil) *(Nil) 20102011 Expenditure Nil(Nil) *(Nil)

9. 10. Advanceincome tax issubjecttosetoffwithprovision for corporatetaxasandwhenassessed. st The company has taken certain plant and machinery under operating lease prior to the period I April, 2001.The company is having legal disputes with the concerned lessors and there are counter claims which are pending under arbitration/court, as such the future liability on thisaccount,ifany,isnotascertainable. During the year 27.94,800 equity shares of Rs 10 each were alloted as fully paid up pursuant to the conversion of US$ 10.2 mn Foreign Currency Convertible Bonds (FCCB) out of the US$ 50 mn FCCB issued by the Company in October2009. During the year 1,00,00,000 equity shares of Rs 10 each were alloted on 01.01.2011 as fully paid up pursuant to the conversion of 1,00,00,000 Convertible Share Warrents issued on 04.07.2009. Share capital includes 4,50,000 equity shares issued on conversion of term loan and 2,60,22,648 equity sharesallottedasBonussharesbycapitalisationofSecurtiesPremiumAccountinearlieryears. Gross Block of Land and Plant & Machinery includes Rs. 2,014.11 lacs and Rs. 19,823.69 lacs recpectively added on revaluation of assets as at 31st March 2005.The depreciation as shown in the Profit & Loss Account is net of amount of Rs. 1,278.60 lacs adjusted against the Revaluation reserve. Investment in Sharesrefered to in Schedule 5 : Current Year Previous Year Rs. Rs. Prakash Thermal Power Limited Nil(49,400)EquitySharesof10eachfullypaidup 4,94,000 PrakashNatural ResourcesLimited Nil(49,400)EquitySharesof10eachfullypaidup 4,94,000 Prakash Mega Power Limited Nil(49,400)EquitySharesof10eachfullypaidup 4,94,000 PrakashUrjaLimited Nil(49,400)EquitySharesof10eachfullypaidup 4,94,000 PrakashVidyut Limited Nil(49,400)EquitySharesof10eachfullypaidup 4,94,000 24,70,000 Details of Employees Benefits asrequired by the AccountingStandard 15 Employee Benefits aregiven below: a) Defined Contribution Plans: During the year, the company has recognised the following amounts in the Profit & Loss Account (included in Contribution to Provident & Other Funds): Rs.inlacs Current Year Previous Year Contribution to Provident Fund 317.72 273.01 ContributiontoEmployeesStateInsurance 100.99 63.91 b) Defined Benefit Plan: Reconciliation of opening and closing balances of Defined Benefit obligation Rs.inlacs Current Year Previous Year Gratuity Leave Gratuity Leave Encashment Encashment (Unfunded) (Unfunded) (Unfunded) (Unfunded) DefinedBenefitsobligation atthebeginningoftheyear 594.71 259.02 546.85 204.81 Current Service Cost 90.12 90.73 66.11 32.82 InterestCost 48.93 21.31 43.63 16.34 Actuarial gain/(loss) 120.73 37.87 (14.44) 19.39 Benefitpaid (23.74) (11.12) 47.44 (14.34) DefinedBenefitobligationattheyear end 830.75 347.21 594.71 259.02 Reconciliation of fair value of assets and obligations Present value of obligation at year end Amount recognized inBalance Sheet Expenses recognized during the year Current Service Cost InterestCost Actuarial gain/(loss) TotalCost recognizedintheProfit&LossA/c 830.75 830.75 90.12 48.93 120.72 259.77 347.21 347.21 40.13 21.31 37.87 99.31 594.71 594.71 66.11 43.63 (14.44) 95.30 259.02 259.02 32.82 16.34 19.39 68.55
11.
12.
13.
14.

Actuarial assumption Mortality Table(L.I.C) Discount rate(per annum) Rate of escalation in salary(per annum) 199496 (Ultimate) 8.25% 5% 199496 (Ultimate) 8.25% 5% 199496 (Ultimate) 8% 5% 199496 (Ultimate) 8% 5%
The estimate of rate of escalation is salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevantfactors including supplyanddemand in the employmentmarket.Theaboveinformation isascertified by theactuary. 15. During the year, the Company has earned gains on sale/purchase of following investments: (Rs. in lacs) Name of the Investments Face Value Rs. No. Purchase Cost Sale Proceeds
16. 17.
Units of Mutual Funds Reliance Liquid Fund Growth Plan 10 17,09,00,189 37,202.58 37,256.50 Bonds of Public Financial Institutions IFCI Ltd. 10Lacs 300 3,011.51 3,024.80 REC Ltd. 10Lacs 950 9,511.25 9,540.15 IDFC Ltd. 10Lacs 150 1,500.00 1,503.25 Excise duty relating to sales has been disclosed as a deduction from sales. Excise duty related to difference between closing stock and opening stock has been disclosed in Schedule 10 Increase/Decrease in stocks. The breakup of DeferredTaxAssets/(Liabilities) is as under : (Rs. in lacs) Particulars Depreciation on FixedAssets Disallowances under Section 43B of IncomeTaxAct, 1961 Provisions As at 31.03.2011 (8,629) 206 402 (8,021) As at 31.03.2010 (8,807) 799 290 (7,718)
18.
Managerial remuneration:
Particulars
This Year Rs.
PreviousYear Rs.
2,02,05,000 1,71,15,000 24,24,600 20,53,800 29,190 29,999 9,60,000 8,40,000 2,36,18,790 2,00,38,799 Provision of Gratuity & Earned Leave 52,39,299 82,53,230 2,88,58,089 2,82,92,029 19. The Company has raised amounts against issue of Foreign Currency Convertable Bonds (FCCBs). The outstanding amount of FCCBs as on 31st March, 2011 is Rs. 347.55 crore (US$ 77.1 Million) out of which, FCCBs of Rs. 79.65 crore (US$ 17.1 Million) and Rs.267.90 crore (US$ 60.0 Million) will get matured in October, 2014 and April, 2015 respectively. However, the respective bond holders have an option to get their bonds converted into equity shares of the Company or on before the maturity date. The amount raised by way of FCCBs has been utilised towards Capital expenditure for expansion and modernisation plans of the Company.The Company has complied with all the financial andotherconvenantsasmentionedintheOfferingCircularwithrespecttotheissueofFCCBs
The outstanding FCCBs as on 31st March,2011 are repayable in Foreign Currency amounting to US$ Mn. 77.1 and same has not been hedged by any derivative instrument or otherwise by the Company.
Salary & Allowances Provident Fund Contributions OtherPerquisites Exgratia Bonus

20. Related partydisclosure asrequired byAccountingStandard 18 issuedby theInstitute of CharteredAccountants of Indiaare asunder : (A) Listofrelatedpartiesandtheirrelationship a) Enterprise on which key management personnel and/or their relatives excercise significant influence with whom transactions have taken place during the year. 1. PrimenetGlobalLimited 2. Surya Roshni Limited 3. PrakashNatural ResourcesLimited 4. Vanshi FarmsPrivate Limited b) Key Management Personnel : 1. Shri V.P.Agarwal, Chairman & Managing Director 2. Shri VikramAgarwal, Joint Managing Director 3. ShriG.L.Mohta, WholeTime Director 4. Shri VipulAgarwal, WholeTime Director c) JointVentureEntities: 1. Madanpur (North) Coal Co. Pvt. Ltd. 2. Fatehpur Coal Mining Co. Pvt. Ltd. (B) Transactionswithrelatedparties (Rs.in lacs) Key Management Personnel This Year Previous Year Remuneration 288.58 282.92 Enterprises Hire Charges paid 211.11 220.18 Amountpaid forServices 70.12 3.89 Purchase of goods 34.40 PurchaseofVehicles 61.56 Saleofgoods 0.93 Advances paid 3,582.40 1,184.83 Balances outstandingat year end 3,161.33 2,386.20 JointVentureEntities Share Capital Contribution 4.61 Advances paid 91.04 Balances outstandingat year end 91.04 Notes: Related party relationship in terms ofAccounting Standard 18 as given above is pointed out by the management and relied upon by the Auditors. 21. Earning per share (EPS) : This Year Previous Year NetProfit(Rs.inlacs) 26,708 26,616 Weighted average no. of Equity Shares (In lacs) 1,267.31 1166.26 Basic/Diluted Earning per Share (Rs.) 21.07 22.82 Nominal Value of each Share (Rs.) 10.00 10.00 Note : Outstanding FCCBs beinganti dilutive havenot been considered forthe purpose of computing diluted earningper share. 22. CertainbalancesofDebtors,AdvancesandCreditorsaresubjecttoconfirmations.Intheopinionofthe management,nomajoradjustmentwill be requiredto bemadeintheaccountsonreceiptoftheseconfirmationsand subsequenttotheir reconcilations. 23. Previous year's figures have been shown in brackets and are regrouped/rearranged wherever considered necessary to conform with current years presentation. The figures have been rounded off to the nearest of Rupee. 24. Schedule1 to 16formanintegral partofaccountsand havebeen dulyauthenticated.

25. Segment wise Revenue, Results and Capital Employed (Rs.inlacs) Particulars Segment Revenue a) Power b)Steel c)PVCPipe&Others Total Less:InterSegmentRevenue(Power) NetSales/IncomefromOperations SegmentResults Profitbeforetaxandinterest a) Power b)Steel c)PVCPipe&Others Total Less:FinancialExpenses Unallocableexpenditure TotalProfitbeforetax This Year 30,742 1,52,222 13,110 1,96,074 29,664 1,66,410 PreviousYear 30,134 1,45,496 10,963 1,86,593 29,827 1,56,766
23,291 3,519 1,391 28,201 570 270 27,361
23,543 5,347 1,446 30,336 2,548 462 27,326 46,036 1,08,034 3,321 1,57,391
26.
CapitalEmployed(SegmentAssetsSegmentLiabilitiesRevaluationReserve) a) Power 91,224 b)Steel 1,32,399 c)PVCPipe&Others 3,842 Total 2,27,465 Additionalinformationpursuanttopara3,4Cand4DofPartIIofscheduleVItotheCompaniesAct,1956. This Year Quantity MT Material Consumed/Purchased : Chargeable Metal Coal PVCResin Ores&Minerals Others 10,08,379 12,15,216 14,179 7,47,443 Value (Rs.) Quantity MT 10,85,018 9,72,065 13,037 6,17,072 PreviousYear
Value(Rs.)
3,16,45,27,350 63,87,53,866 83,37,78,516 4,72,41,80,679 72,73,90,920 10,08,86,31,331
4,48,55,66,505 32,06,21,884 69,89,08,492 2,83,47,64,815 61,11,73,750 8,95,10,35,446
Quantitiesareinclusiveofinterdivisionaltransfers. Installed Capacities and Production (AscertifiedbytheManagement&relieduponbytheAuditors) Class of Product FinishedSteel LiquidMetal Sponge Iron FerroAlloys RigidPVCPipes Power Generation **UnitinMillions Unit MT MT MT MT MT MW Installed Capacity This Year PreviousYear 7,50,000 7,50,000 7,00,000 7,00,000 6,00,000 6,00,000 48,000 48,000 20,000 20,000 96 96 Production This Year PreviousYear 4,26,532 4,74,386 4,87,999 5,07,400 4,06,092 3,35,286 40,529 43,842 20,073 17,955 635** 608**
TURNOVER AND STOCKS :

TURNOVER PREVIOUSYEAR Quantity Value (Rs.) Quantity Value (Rs.) Quantity Value (Rs.) Quantity Value (Rs.) THIS YEAR PREVIOUSYEAR THIS YEAR CLOSING STOCK OPENING STOCK PREVIOUSYEAR Quantity Value (Rs.)
CLASS OF PRODUCTS Value (Rs.)
UNIT
THIS YEAR
Quantity
FINISHED STEEL 1223792681 278219308 1904895669 1218112029 107814116 126261788 18211486407 38033103 318394329 608 30660752 18024 1095453765 558 30784993 561 43971 1739189822 1444 51744040 1446 335097 182 2399762 462 4534362 40066113 28131011 46459815 285730397 507222 1014595619 1459 32331527 1781 32992852 1781 462 1446 561
MT
426640
13352390816
471416
13018372884
5641
163100904
5749
133546244
5749
133546244 32992852 4534362 40066113 28131011 46459815 285730397
2779 1603 273 1575 630
76117040 33919823 3701468 61585233 31593307 46627495 253544366
LIQUID METAL
MT
488321
SPONGE IRON
MT
406372
FERRO ALLOYS
MT
40531
RIGID PVC PIPE
MT
20076
9369152 16907641994 Note:Turnover quantities include used for captive/inter divisional transfers and shortages.
POWER GENERATION MILLION UNITS OTHERS
635

Value of consumption of imported and indigenous raw materials, stores and spares and percentage to total consumption:
Rs. Raw Material/Components Imported Indigenous Stores&Spares Imported Indigenous 31,36,558 33,92,29,498 34,24,29,056
This Year Percentage
Rs.
PreviousYear Percentage
10,08,86,31,331 10,08,86,31,331
100.00% 100.00% 0.92% 99.08% 100.00%
17,17,34,250 8,77,93,01,196 8,95,10,35,446 45,15,320 34,71,72,446 35,16,87,766
01.92% 98.08% 100.00% 01.28% 98.72% 100.00%
CIF value of imports :
RawMaterials Stores&Spares Plant&Machinery

Earning in foreign exchange : FOBValueofExports Expenditure in foreign currency : Travelling InterestonBonds Professional Charges
38,50,389 63,01,450
3,25,66,787 42,20,835 98,90,819
3,87,223 17,30,43,659 9,81,07,703
8,57,900 3,15,92,243 8,69,23,650
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL PROFILE I. Registration Details

Registration No. State Code Balance Sheet Date II. Capital Raised during the year (Amount in Rs. Thousands) PublicIssue RightIssue BonusIssue PrivatePlacement/PreferentialIssue 1,27.948 10724 05 31.03.2011

III. Position of Mobilisation and Deployment of Funds TotalLiabilities TotalAssets Sources of Funds PaidupCapital Reserves & Surplus Secured Loans Unsecured Loans DeferredTaxLiabilities(Net) Application of Funds NetFixedAssets Investment NetCurrentAssets Miscellaneous Expenditure : : : 1,92,27,504 2,70,231 47,63,081 4,95,201 : : : : : 13,44,885 1,58,42,985 32,90,565 34,75,518 8,02,064 : : (Amount in Rs. Thousand) 2,47,56,017 2,47,56,017
IV.
Performance of Company (Amount in Rs. Thousands) Turnover Total Expenditure NetProfitfortheyear EarningperShare(inRs.) DividendRate % : : : : : 1,82,11,486 1,55,40,698 26,70,788 21.07 10.00
V.
Generic Names of Three Principal Products of Company (as per monetary terms) Product Description (a)MSRoundinCoil (b)MSBillet (c)FerroAlloys : : : Item Code No. (ITC Code) 72131090 72071920 72023000

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PRAKASH INDUSTRIES LIMITED

Chairman & Managing Director Joint Managing Director

Whole time Director Whole time Director

Chaturvedi&Partners Chartered Accountants

Corporation Bank Kotak Mahindra Bank

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

Category 'C' i) ii) iii) FreeuseofCompany'sCarwithdriverforCompany'sbusiness. Freemobileandtelephonefacility.Personallongdistancecallsshallbe billedbytheCompany. Reimbursementofallentertainmentandtravelingexpensesactually incurredbytheManagingDirectorforthebusinessoftheCompany.

PRAKASH INDUSTRIES LIMITED

Category 'A' i) ii) MedicalReimbursement:Expensesincurredforselfandfamilysubject toaceilingofonemonth'ssalaryinayear. LeaveTravelConcession:Forselfandfamilytoandfrotoanyplacein Indiaonceinayearsubjecttoceilingofonemonth'ssalary.

PRAKASH INDUSTRIES LIMITED

Manoj Agarwal CompanySecretary

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

Manoj Agarwal CompanySecretary

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

PRAKASH INDUSTRIES LIMITED

S.No. Name of Directors and their DIN No.

No.of Board Meetings Attended

Last AGM Attended

No. of Directorships held in other Companies Chairman Director

Yes No No No No Yes Yes

PRAKASH INDUSTRIES LIMITED

Sitting Fee N.A. N.A. 2.55 2.10 1.95

144.00 10.05 Nil Nil Nil

17.28 1.21 Nil Nil Nil

Sh.VikramAgarwal (JointManagingDirector) Dr.S.L.Keswani Dr.RamK.Vepa Sh.K.C.Mehra

4. Shri VikramAgarwal 3 years

PRAKASH INDUSTRIES LIMITED

ComplianceOfficer No.ofshareholders/investorscomplaints st receivedupto31 March,2011 No.ofcomplaintsnotsolvedtothe satisfactionofShareholders/investors No.ofpendingcomplaints

ShriManojAgarwal CompanySecretary 34 Nil Nil

PRAKASH INDUSTRIES LIMITED

ISIN No. for equity shares ii)

Foreign Currency Convertible Bonds (FCCBs):

iv) Fourthquarter/Annualresults upto15th/30thMay,2012

PRAKASH INDUSTRIES LIMITED

Share Transfer System TheTransferofsharespertainingtosharesinphysicalformareregistered andreturnedwithinthestipulatedtime,ifdocumentsareclearinallrespects.

Whistle Blower Policy TheCompanyhasplacedlockedboxesatappropriateplacesintheplant whereincomplaints/ suggestionscanbedroppedbyanyemployee whichareproperlyconsideredbytheManagement.

PRAKASH INDUSTRIES LIMITED

To The Members of PrakashIndustries Limited

For I.D. Sharma & Associates Company Secretaries

Place : New Delhi th Dated: 30 May, 2011

I.D. Sharma Proprietor C.P. No.7369

PRAKASH INDUSTRIES LIMITED

729 2,124 2.91

704 2,621 3.72

531 1774 3.34

521 1652 3.17

576 168 29,171

1,773 390 24,977

3,722 1,005 27,002

3,786 871 25,004

PRAKASH INDUSTRIES LIMITED

Electricity(KWH) FurnaceOil TECHNOLOGY ABSORPTION A)

Steel Ingot/Billets Division 20102011 20092010 894 857 0.60 0.57

Steel Rolling Mill Division 20102011 20092010 117 97 15 25

Wire Rod Mill Division 20102011 20092010 112 129 11 9

PRAKASH INDUSTRIES LIMITED

for CHATURVEDI & PARTNERS Chartered Accountants RegistrationNo.307068E