17th Annual Report

Contents 02 03 04 08 09 11 13 13 14 16 17 18 22 26 28 38
................ Corporate identity ................ Highlights ................ CMDs review ................ Business drivers ................ Industry review ................ Operations ................ Quality management ................ Marketing management ................ Finance review ................ Risk management ................ Corporation information ................ Notice ................ Directors report ................ Management disscussion and analysis ................ Corporate Governance report ................ Financial section
Cautionary statement
In this Annual Report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We have tried wherever possible to identify such statements by using words such as anticipates, estimates, expects, projects, intends, plans, believes, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward looking statements will be realized, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
A PRODUCT [email protected]
Take food for a picnic. Get cake delivered home from the restaurant. Ask for unfinished restaurant food to be packed. Store left over chow mien overnight in the refrigerator. An increasing number of people prefer to use aluminium food packaging containers today. And eight out of ten aluminium packaging containers used in India are manufactured by Parekh Aluminex. The result is that in the span of only five years, Parekh Aluminex more than fivefolded its cash profit to `1,114.37 million and emerged as the largest aluminium container packaging company in Asia.
9,041.28
4,223.26
2,988.06
1,864.86
Listing Business Presence Lineage
2008-09
2006-07
2007-08
2008-09
2007-08
2009-10
Headed by Mr. Amitabh Parekh (Chairman and Managing Director)
Profit after tax (` in million)

Registered and administrative office in Mumbai with three manufacturing facilities in Dadra and Nagar Haveli (Union Territory) 455.51 381.40 Exports to 30 countries (including the US) 261.19 672.51
2006-07
2010-11
Cash profit
2009-10
(` in million) 1,114.37
Engaged in the manufacturing of aluminium 139.66 foil containers, lids and rolls
2008-09
209.86
355.89
532.83
707.23
2009-10
2006-07
2007-08
2006-07
2007-08
2009-10
Listed on the National Exchange and Bombay Stock Exchange
5,727.53
Gross block (` in million)
2010-11
Earnings per share (`)

51.97 19.95 20.18 29.48 35.20
2009-10 2010-11 2006-07 2007-08 2008-09
ISO 9001:2000-certified by Intertack, Sweden
Certifications
(first Indian company in this category) ISO 22000: 2005 and HACCP-certified & Bradstreet. Expo Gold card awarded by our lead bankers Star Export House declared by the Indian Government
2007-08 2008-09 2009-10
GMP (Good manufacturing process) certified
2006-07
2010-11
BRC (British Retail Consortium) accreditation
726.81
for robust export performance
867.65
1,450.75
2,200.57
5A-2 GOOD status awarded by Dun
2008-09
2010-11
2010-11
Established in 1994
298.05
Think Parekh Aluminex, think industry leadership.
PAT increased 47.64% from `455.51 million in 2009-10 to `672.51 million
484.98
726.86
Think aluminium foil containers, lids and rolls, think Parekh Aluminex.
6,357.27
EBIDTA margin increased from 17.38% in 2009-10 to 17.88%
1,105.06
Total income increased 42.22% from `6,357.27 million in 2009-10 to `9,041.28 million
1,616.94
Think food, think aluminium foil containers, lids and rolls.
Attractive past. Promising future. Highlights, 2010-11

Total income (` in million) EBIDTA
(` in million)
Annual report 2010-11
Parekh Aluminex Limited
We strengthened volume and margins in 2010-11.

Reasons for optimism
At this interesting juncture in the history construction of four new lines to
At this interesting juncture in the history of our business, there is considerable room for optimism for the industry at large and for the Company in particular. This is on account of structural shifts transpiring within the Indian economy, creating attractive demand triggers.
products to keep their food fresh. Product branding (Me Foil), promotional advertisements and shelf attractiveness leading to an FMCG branding in Indias aluminium foil segment.
connect unserved and underserved regions. Four, India's urban population grew from 290 million (2001 census) to 340 million in 2008 and is projected to grow to 590 million by 2030, catalyzing the consumption of aluminium foil containers, lids and rolls. Five, the Indian food processing market (US$100bn) is estimated to grow 13 percent annually. Food retail turnover is expected to grow from `3,39,365 crore in 2009-10 to `7,27,212 crore by 2025, enhancing demand for aluminium packaging solutions. Six, with more institutional clients getting aware of the advantages of using recyclable products, aluminium foils and containers are gaining in importance.
here is a sweeping transformation in Indian lifestyles, resulting in
Progress
Your Company represents an interesting instance of a market leader demonstrating the hunger of an industry entrant. The result was that your Company undertook several initiatives during the year under review to strengthen its competitiveness: Increased exports, US presence, presence in 35 more counties, four new countries and Indian institutional clientele. Expanded our Indian revenues 45 percent, adding seven clients. Achieved empanelment by Dominos for pan-Indian supply of packaging for pasta and choco lava cake. Introduced a three compartment platter for Indian railways, disposable catering containers for outdoor and barbeque services and new moulds for bakeries. The result was that even as competition increased, your Company responded with a wider product range derived from a deeper customer understanding; even as growth pressures increased, your Company responded with a timely inorganic initiative which will lead to sustainable growth.
of our business, there is considerable room for optimism for the industry at large and for the Company in particular. This is on account of structural shifts transpiring within the Indian economy, creating attractive demand triggers. One, there is unprecedented income growth in India. This is translating into a lifestyle evolution as well, marked by an increasing tendency to store food over longer periods, cook now and consume later, call for food from restaurants and transport food across locations. Two, this consumption pattern has extended beyond the traditional dabba solution; people find these conventional packaging forms unwieldy. In a fast-paced world, people find it convenient to use and dispose packaging without compromising food hygiene and palatability. Three, in a world where labour costs are rising, institutions railways and airlines are finding it increasingly cost-effective to outsource disposable packaging rather than pay to wash and reuse. This trend rides Indian infrastructure growth: Indian Railways announced the addition of 56 trains in 2011-12 and announced the
increased food packaging. Your Company has emerged as one of the biggest beneficiaries of this change, reflected in straight growth since inception. It is a fair commentary on our business potential that even as the Indian economy grew 8.5 percent in 2010-11, our topline grew 42 percent and net profit grew 48 percent. It is a reasonable index of our competitiveness that our EBIDTA margin increased 50 basis points and net profit margin 27 basis points on the back of rising revenues. This growth in volume and margins represents a vindication of our longstanding business strategy of increasing capacities, commissioning assets faster than the industry norm, enriching our product mix, reducing capital cost per tonne, strengthening our distribution chain and marketing our products across international geographies. The result extended beyond margins and profits; your Company retained its industry leadership position and position as preferred packaging provider in India.
Message to the shareholders

At Parekh Aluminex, our progressive investments and initiatives are expected to enhance our topline to `2,000 crore by 2014, increasing value for all those who hold shares in our Company. Regards,
Amitabh Parekh Chairman and Managing Director
Moving ahead
Parekh Aluminex is the undisputed leader in the Indian aluminium packaging market. Going ahead, we expect to reinforce our industry position through the following initiatives: Specialisation of our marketing across the wholesale, institutional, export and modern trade segments. We will focus on the modern trade segment as it will open up a larger household market, riding the incidence of working couples requiring packaging
Parekh Aluminex. Raising the bar through availability, accessibility and affordability. Parekh Aluminex. Market leader. In the right place at the right time.
PAREKH ALUMINEX IS PLACED IN THE RIGHT COUNTRY AT THE RIGHT TIME. India is the second most populous country in the world. A large proportion of this country still uses conventional packaging. New materials like aluminium account for a nominal proportion of packaging material, well below the international average. However, something significant is beginning to happen. Traditional countries like India are evolving. An increasing number of women are beginning to work. Lives are paced faster than before. Spare time is declining. Among the first impacts this is having is on the way food is consumed. Earlier, food would be cooked fresh and eaten hot. Today, it is cooked, stored, reheated and consumed. This single lifestyle transition represents the fundamental rationale for Parekh Aluminex to grow its business in a robust and sustainable way. Result: Given the largeness of the Indian population and the extent of product under-penetration, Parekh Aluminex has emerged as one of the fastest growing aluminium packaging container companies today. The Company has grown revenues at a compounded 385 percent rate of growth over the last five years leading to 2010-11, higher than the international sectoral growth average. THE ALUMINIUM PACKAGING CONTAINER IS A MATURE CONSUMER PRODUCT. By its very nature, it can be copied, replicated and produced by anybody. However, even in this relatively low technology space, Parekh Aluminex accounts for a market share of around 80 percent. This sectoral domination has been the result of some conscious initiatives: An aggressive commitment to invest in incremental capacity at the lowest commissioning and capital cost leading to the largest volume available to consumers at the most competitive cost An investment in the industrys widest moulds portfolio resulting in an ability to cater to diverse sectoral needs An investment in a vibrant sales force and 225 dealers across India resulting in ability to service demand spikes in the shortest possible time Result: Volumes increased 10.88 percent in 2010-11, margins increased 27 bps and cash profit increased 10.88 percent to `1,114.37 million.
Business drivers
Size
Largest aluminium foil containers, lids and rolls manufacturers in Asia
Industry review
Quality
Possesses all quality certifications including ISO 9001:2000, ISO 22000:2005, HACCP, GMP and BRC
Spread
Products exported to over 35 countries, mitigating demand risks.
Product mix
Mould bank of 180 varieties enables the manufacture of a wide range of mass and value-added products
Market status
First in India to enter the aluminium packaging market with a market share of 80 percent (organised sector)
Global packaging industry

A major part of the global packaging industry is based in Europe, North America, Asia and Latin America, dominated by the consumer segment (70 percent) and the industrial segment accounting for the rest. The global packaging industry is growing at around 3.5 percent per annum. The concept of green packaging is gaining prominence. This segment is being catalysed by advanced technologies and even though it entailed a higher production cost, the segment is likely to enhance market share and emerge as a US$ 107.7 bn segment by 2011. This segment is finding growing preference following environment concerns , eco-friendly packaging, carbon emissions and
waste reduction targets specified by countries. This green packaging segment, comprising aluminium packaging, is also likely to register consistent growth on account of increasing health awareness, higher incomes, growing economies, dearth of natural resources and rising energy consumption.
Packaging accounts for only around 11 percent of aluminium use in India compared with a global average of around 20 percent. With an increase in disposable income in the hands of the rising middle-class, health awareness and a preference for eco-friendly packaging and serving solutions, aluminium container consumption is set to increase rapidly.
Foresight
Promoters enjoy over 17-years of corporate experience, enabling the Company to execute strategic forward-looking initiatives to grow market share and profitability
Environmentfriendly
Products made from aluminium are environment-friendly, non-toxic and preserve food taste and nutritional value
Clientele
Customers include Indian Railways, Kingfisher Airlines, Jet Airways, Indian, Air India, Indian Railways Catering and Tourism Corporation, Taj Air Caterers, B.E. International, Danone Group, SOP International, Emirates, Singapore Airlines, Thai Airways, Gulf Air, Etihad, Air Asthana and Sri Lankan Airlines
Indian packaging industry

India is the worlds eleventh largest packaging consumer, with a market size of US$ 550-billion that is expected to grow 18-20 percent (presently 15 percent). Evidently, it is projected that increased incomes will translate into higher industry growth. The `65,000 cr Indian packaging industry, is fragmented and dominated by unorganised players.
Demand drivers
Railways: Indian Railways is the worlds fourth-largest railway network, transporting more than 18 million passengers daily. It runs more than 17,000 trains a day. Even a marginal change in aluminium packaging consumption by the Indian Railways can potentially increase demand for such products in a significant way. The Railways announced the addition of 56
Operations
trains in Budget 2011-12, and the construction of four lines. This is expected to translate into increased demand for aluminium packaging products. Food processing industry: The Indian food processing sector is the fifthlargest in the country in terms of production, consumption and export. The US$ 100 bn Indian food processing market is estimated to grow 13 percent annually. Food retail industry: Indias food retail turnover is expected to grow from `3,39,365 crore in 2009-10 to `7,27,212 crore by 2025, enhancing the demand for aluminium packaging solutions. This is expected to translate into an increased consumption of aluminium foil containers, lids and foil rolls. Besides, the Indian fast food industry is expected to grow at a CAGR of 30-35 percent during 2010-2013, which is expected to increase downstream foil packaging applications. Growing urban population: India's urban population is growing and the proportion of urban Indians is expected to rise from around 30 percent to 40 percent in a decade. This is likely to translate into an increased consumption of aluminium foil containers, lids and rolls. Airports: The size of, Indias aviation market trebled in five years, according to the latest report by the International Air Transport Association (IATA). India is currently the worlds ninth-largest aviation market; domestic passenger traffic is estimated to reach 150180 million by 2020. The Indian commercial aerospace market is estimated to absorb about 1,100 commercial jets worth US$ 130 billion over the next 20 years, widening the market for for aluminium packaging products. Growing working population: In 2010, half of Indias population was younger than 25 years old and 781 million individuals comprised the working-age population of 15-64. These numbers are expected to increase sharply over the next two decades. By 2020, the countrys working-age population is expected to reach 916 million and by 2030, Indias working-age population should reach an impressive 1.02 billion.
Highlights, 2010-11
Increased aluminium foil container capacity from 4,000 mn pieces in 200910 to 5,750 mn pieces Increased aluminium foil roll capacity from 75 mn pieces in 2009-10 to 98 mn pieces Increased aluminium foil lid capacity from 1,200 mn pieces in 2009-10 to 1,590 mn pieces
Introduced more than 50 new mould varieties
Overview
The Company is engaged in the manufacture of aluminium foil containers (AFC), aluminium lids and aluminium foil rolls of various sizes, shapes and thicknesses as per customer requirements. The Companys products are used in
packaging food items in households, travel and hospitality sectors (airlines, railways, fast food chains, restaurants, hotels, among others). The Companys automated manufacturing facilities (located in the Union Territory of Dadra and Nagar Haveli) are equipped with state-of-the-art equipment and a bank of over 180 multi-cavity moulds. It grew the country-specific mould facilities to cater to niche markets.
Indias population pyramid 2030E
Product profile
Aluminum foil containers (AFCs) AFCs comprise casseroles, pans, dishes, trays, packing material made of aluminum foil. PAL manufactures AFCs in various shapes and sizes. AFCs can be customised on the basis of choice of temper, gauge, forms and rim style. Aluminum foil rolls (AFRs) Aluminum lids The Company manufactures AFRs under the brand name ME and PAL. The Company also manufactures various lids/covers for AFCs like poly laminated lids, foil laminated lids, transparent lids, dome lids, aluminum foil covers.
The manufacturing facilities received power at subsidised rates resulting in a cost advantage. Both facilities enjoyed 15 year tax exemption (six years left).
Production
Facility Aluminum foil containers (AFC-- casseroles/trays/containers/dishes) Aluminum foil rolls (AFR) Aluminum lids
(million pieces per annum)

2009-10 2,860 54 867 2010-11 3,650 65 1,050
Road ahead
Going ahead, the Company plans to enhance capacity utilisation and operational efficiency. 10
Annual report 2010-11 Parekh Aluminex Limited
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Quality management
Highlights, 2010-11
Reduced rejection rate The Company housed cutting-edge quality measurement tools like micrometer, UTS, elongation machine (to ascertain tensile strength), bursting strength machine (to ensure packaging material quality) and paper weighing machine (to check GSM), among others. The Company employed people in research and development with a view to improve manufacturing capabilities. As a result of worldclass quality control parameters, the Companys manufacturing facilities were ISO 9001:2000, ISO 22000:2005 and HACCP-certified.
Overview
The strong member quality management team ensured conformance with quality control norms. The quality control measures began from incoming raw material (microns and elongation checking) to the production process (product defects) to finished goods.
Road ahead
The Company will focus on quality improvement and reduce the internal rejection rate.
Marketing
Highlights, 2010-11
Increased average realisation from `1.67 per piece in 2009-10 to `1.89 per piece Recorded 80 percent growth in domestic distributor sales Added seven institutional clients Premium trains started using compartmental foil containers to serve food Expanded presence in four new geographies percent of the Companys revenues were derived from exports. In India, the Company supplies products to wholesalers, airlines, Indian Railways, bakeries, retail outlets and catering companies, among others. The Company provides customised products through a bank of more than 180 multi-cavity moulds. This enhanced acceptance of the Companys products in Indian and international markets especially in an environment of limited mould supply. The Company created a strong domestic client base comprising Jet Airways, Indian, Air India, Kingfisher, IRCTC and Taj Air Caterers, among others. The international clientele included B.E. International, U.K. (Danone Group), SOP International, U.K. (major in food packaging industry) and major airlines like Emirates, Singapore Airlines, Thai Airways, Gulf Air, Etihad Airways, Air Asthana and Sri Lankan, among others.
Road ahead
The Company is strengthening its focus on the modern trade segment and undertaking various branding campaigns for enhanced FMCG recall.
Overview
The Companys products are sold in domestic and international markets (more than 30 countries across continents). Around 11
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Finance review
Accounting policy
The financial statements were prepared on a historical cost convention basis and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956, and the applicable Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006. The Company followed the mercantile system of accounting. The accounting policies were consistently applied by the Company and were in accordance with those used in the previous year.
Performance 2010-11 vs 2009-10

2009-10 Total income EBIDTA PAT EPS (Rs.) 6,357.27 1,105.06 455.51 35.20 2010-11 9,041.28 1,616.94 672.51 51.97
(` in million)
Growth (%) 42.22 46.32 47.64 47.64
`7,161.38 million as on 31st March 2010 to `9,066.76 million as on 31st March 2011, owing to an increase in the Companys net worth and debt. Return on capital employed (ROCE), an effective tool to measure return on every rupee invested in the Company, increased 17 basis points from 14.49 percent in 2010-11 against 14.32 percent on 2009-10. Net worth: The Companys net worth increased 20.04 percent from `3,063.42 million as on 31st March 2010 to `3,683.17 million as on 31st March 2011, largely owing to an increase in earnings. The Companys equity capital remained unchanged at `129.40 million as on 31st March 2011 against the same amount as on 31st March 2010. The Companys equity share capital comprised 1,29,40,000 equity shares of `10 each. The Companys reserves and surplus increased 21.12 percent from `2,934.02 million as on 31st March 2010 to `3,553.77 million as on 31st March 2011, owing to an increase in ploughed profits. Around 98.09 percent of the reserves were free in nature. External funds: External funds, comprising secured and unsecured loans, increased 32.18 percent from `4,059.40 million as on 31st March 2010 to `5,365.53 million as on 31st March 2011, owing to funds required for expansion activities, and increased working capital requirements following enhanced operations. Secured loans (65.71 percent of total debt in 2010-11 against 66.40 percent in 2009-10) increased 30.80 percent from `2,695.29 million as on 31st March 2010 to `3,525.52 million as on 31st March 2011; unsecured loans (34.29 percent of total debt in 2010-11 against 33.60 percent in 2009-10) increased 34.89 percent from `1,364.11 million as on 31st March 2010 to `1,840.01
million as on 31st March 2011. The Companys debt-equity stood at 1.46 in 2010-11 (1.33 in 2009-10). The Companys total interest outlay increased 35.49 percent from `267.97 million in 2009-10 to 363.07 million, owing to an increased debt portfolio. Interest cover for 2010-11 stood at 4.02, reflecting the Companys ability to service debt.
as on 31st March 2011, owing to an increase in raw material stocking to address increasing volumes. Inventory cycle increased marginally from 56 days of turnover equivalent in 2009-10 to 57 days in 2010-11. Sundry debtors: The Companys sundry debtors increased 50.81 percent from `1,287.81 million as on 31st March 2010 to `1,942.12 million as on 31st March 2011, owing to an increase in sales. Receivables cycle increased from 74 days in 2009-10 to 79 days in 2010-11. None of the debtors were more than six months old, reflecting strong receivables management. Cash and bank balances: The Companys cash and bank balance declined 5.50 percent from `399.20 million as on 31st March 2010 to `377.25 million as on 31st March 2011. Loans and advances: Loans and advances declined 35.93 percent from `378.58 million as on 31st March 2010 to `242.55 million as on 31st March 2011, owing to a decline in advances recoverable Current liabilities and provisions: Current liabilities and provisions declined 9.91 percent from `907.71 million as on 31st March 2010 to `817.78 million as on 31st March 2011, owing to a decline in other sundry creditors.
Gross block
The Companys gross block increased 160.17 percent from `2,200.57 million as on 31st March 2010 to `5,727.53 million as on 31st March 2011, owing to its expanded capacity becoming operational. Depreciation increased 75.54 percent from `251.72 million in 2009-10 to `441.86 million in 2010-11, owing to an increased gross block. The Company provided depreciation on fixed assets on written down value method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956. Accumulated depreciation as a proportion of gross block stood at 19.43 percent, reflecting asset newness.
Revenue analysis
The Companys total revenues (net sales) increased 42.29 percent from `6,341.56 million in 2009-10 to `9,023.46 million in 2010-11 owing to enhanced sales and realisations. Revenue by geography: A strong offtake from customer segments and the addition of new customers resulted in a 49.60 percent increase in domestic revenues from `5,367.37 million in 2009-10 to `8,030.12 million in 201011. Domestic revenues accounted for 88.99 percent of the Companys revenues in 2010-11 against 84.64 percent in 2009-10. On the other hand, export revenues increased 1.97 percent from `974.19 million in 2009-10 to `993.34 million in 2010-11, owing to stronger global demand. The Companys superior quality resulted in better product acceptance. Export revenue accounted for 11.01 percent of the total revenue in 2010-11 against 15.36 percent in 200910. The US was the largest export contributor , accounting for 52.11 percent of total export sales in 2010-11. Income from sources: Income from other sources increased 13.43 percent from `15.71 million in 2009-10 to `17.82 million in 2010-11, owing to an increase in interest income. Other 14
income formed only 0.20 percent of total income in 2010-11 (0.25 percent in 2009-10), reflecting the Companys consistent focus on core operations.
income stood at 4.59 percent in 201011 against 4.85 percent in 2009-10, reflecting efficient manufacturing cost management. The Companys power and fuel cost increased 40.15 percent from `19.23 million in 2009-10 to `26.95 million in 2010-11 as a result of increased power requirement owing to enhanced capacity. Employee cost: The Companys employee cost increased 12.10 percent from `32.14 million to `36.03 million, owing to an increase in employee strength through the expansion of operations and annual compensation increment. Employee cost as a proportion of total income declined from 0.51 percent in 2009-10 to 0.40 percent in 2010-11.
Cost analysis
The Companys total operating cost increased 41.36 percent from `5,252,21 million in 2009-10 to 7,424.34 million in 2010-11, owing to enhanced operations and increase in key input costs. Total operating cost as a proportion of total income stood at 82.12 percent in 2010-11 against 81.62 percent in 2009-10 reflecting better cost management. Raw material cost: Owing to enhanced production capacity, raw material cost increased 42.23 percent from `4,759.88 million in 2009-10 to `6,770.17 million in 2010-11. Raw material cost as a proportion of total income stood at 74.88 percent in 201011 against 74.87 percent in 2009-10, emphasising the Companys controlled cost management. Manufacturing expenses: Manufacturing expenses (excluding power and fuel cost) increased 34.58 percent from `288.57 million in 200910 to `388.37 million in 2010-11, owing to an increase in expenses under various heads. Manufacturing expenses as a proportion of total
Working capital management

The Companys working capital outlay increased 55.18 percent from `2,253.13 million as on 31st March 2010 to `3,496.30 million as on 31st March 2011, owing to expanded capacity becoming operational. Working capital as a proportion of total capital employed stood at 38.59 percent as on 31st March 2011 against 31.46 percent as on 31st March 2010. The Companys current ratio and quick ratio stood at 5.28 and 3.13 respectively in 2010-11 against 3.48 and 2.28 respectively in 2009-10. Inventory: Inventory increased 59.98 percent from `1,095.25 million as on 31st March 2010 to `1,752.16 million
Margins
The Companys EBIDTA margin increased 50 basis points from 17.38 percent in 2009-10 to 17.88 percent in 2010-11, owing to better cost management. Post-tax profit margin increased 27 basis points from 7.17 percent in 2009-10 to 7.44 percent in 2010-11.
Taxation
The Companys total tax outlay increased 7.42 percent from `129.86 million in 2009-10 to `139.50 million in 2010-11, owing to increased pre-tax profit. The Companys manufacturing location attracted sales tax benefits for 15 years (six years left). The Companys products were exempted under certain notifications and subsequent to it, EOU duties were payable but at concessional rates, resulting in cost benefit.
Capital employed
The employed capital in the business increased 26.61 percent from
15
Managing risks
The Company only embarked on those business decisions that balanced risk and reward, ensuring that the Companys revenue-generating initiatives were consistent with the risks taken, so that shareholders were delivered their desired total return.
A slowdown in economy can adversely affect the Companys growth

Risk mitigation The global economy recorded an impressive growth of 5.1 percent in 2010 against a negative growth of 0.5 percent The Indian economy grew of 8.5 percent in 2010-11. Per capita income of Indians increased from `46,492 in 2009-10 to `54,527 in 2010-11 Aluminium packaging is largely under-consumed in India any slowdown impact is likely to be more than made up by a demand upturn arising from a change in lifestyles.
Corporate information
Board of Directors
Mr. Amitabh Parekh : Chairman & Managing Director Mr. Rajendra Gothi Mr. Kiran C. Parikh : Executive Director : Director
Administrative Office
G-11, Everest Building, 8th floor, Tardeo, Mumbai Central, Mumbai - 400 034, INDIA Tel. # 0091-22-40844777 Fax # 0091-22-23523777 / 23524777 E-mail: [email protected] Website: www.parekhaluminex.com
Decline in demand from the downstream industry could affect product offtake
Risk mitigation The Indian packaging industry is expected to grow 18-20 percent annually over the foreseeable future The penetration of aluminium packaging is low in India around 11 percent of all packaging in India consumed aluminium against the global average of 20 percent Indian Railways announced the addition of 56 trains in Budget 201112 which is expected to catalyse aluminium packaging demand Indias air passenger traffic is estimated to reach 150180 million by 2020 from 105 million presently, while international passenger traffic is expected to touch around 50 million by 2015 from 37.91 million presently. An addition of 1.100 commercial jets is expected to be added in the Indian commercial aerospace in the next 20 years
Mr. Devanshu Desai : Director Mr. Vikram Mordani : Director
Audit Committee
Mr. Vikram Mordani : Chairman Mr. Kiran C. Parikh Mr. Rajendra Gothi : Member : Member
Bankers
Indian Overseas Bank Export-Import Bank of India Punjab National Bank State Bank of India Union Bank of India
Substitute products could dampen business sustainability

Risk mitigation Aluminium packaging products are environment-friendly Aluminium foil containers are hygienic, non-toxic and preserve taste, colour and food nutritional value of the food stored in it Aluminium foil containers are light weight and provides logistical benefits Aluminium foil containers are 100 percent recyclable
Shareholders/Investors Grievance Committee

Mr. Rajendra Gothi Mr. Kiran C. Parikh : Chairman : Member
Auditors
M/s. C.V. Pabari & Co. Chartered Accountants Mumbai, INDIA
Mr. Devanshu Desai : Member
Dependence on a particular geography could impact offtake if followed by a slowdown in that region
Risk mitigation The Companys products are sold across India through a diverse distribution mix comprising institutional clients, dealers and retailers Around 11 percent of the Companys products are exported to more than 35 countries
Share Transfer Committee

Mr. Rajendra Gothi Mr. Kiran C. Parikh : Chairman : Member
Manufacturing Units:
1. Survey No.204/1/2, Near Dadra Check Post, Village Dadra - 396 191, U.T. of D. & N.H., INDIA 2. Survey No.207, Plot No.4, Near Dadra Check Post, Village Dadra - 396 191, U.T. of D. & N.H., INDIA 3. Survey No.208, Gala No. 8, Near Dadra Check Post, Village Dadra - 396 191,U.T. of D. & N.H., INDIA
Mr. Devanshu Desai : Member
Inconsistent product quality could lead to customer attrition

Risk mitigation The Companys facilities are ISO 9001 and ISO 22000-certified. Besides, It also received other quality certifications like HACCP, GMP and D&B, ensuring high product quality The Companys in-house quality team ensures strict conformance to the set quality parameters from the incoming raw material to production to the finished products stage. The Company invested in state-ofthe-art quality control equipment to ensure proper product quality The Company reduced quality rejection rates in 2010-11.
Debenture Issue Committee

Mr. Amitabh Parekh : Chairman Mr. Rajendra Gothi : Member Mr. Vikram Mordani : Member Mr. Devanshu Desai : Member
Registrar & Share Transfer Agent:

TSR Darashaw Ltd. 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400011 Tel. No. 00 91-22-66568484 Fax No. 00 91-22-66568494 www.tsrdarashaw.com
Registered Office
601, Auto Commerce House, Kennedy Bridge, Nana Chowk, Mumbai - 400 007, INDIA
Technological obsolescence could impact product acceptance

Risk mitigation The Company invested continuously in the last three years for quality upgradation. The Company has over 180 moulds including multi-cavity moulds, enabling it to produce a variety of products as per customer demands. The fully automated manufacturing process ensures high-quality product manufacturing
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Notice
NOTICE is hereby given that the 17th Annual General Meeting of the members of Parekh Aluminex Limited will be held at The Bombay Presidency Club Limited, 157, Arthur Bunder Road, Colaba, Mumbai 400005 on Wednesday, 28th September, 2011 at 4.00 P.M. to transact, inter-alia, the following business: upon such terms and conditions as the Board may think fit, notwithstanding that the monies so borrowed together with the monies already borrowed by the Company (apart from temporary loans obtained/to be obtained from the Companys bankers in the ordinary course of business) may exceed the aggregate for the time being of the paid-up capital of the Company and its free reserves, that is to say, reserves not set apart for any specific purpose, provided however that the total amount so borrowed (apart from temporary loans obtained/to be obtained from the Companys bankers in the ordinary course of business) shall not at any time, exceed the limit of ` 50,000 million (Rupees Fifty Thousand Million) FURTHER RESOLVED THAT the Board of Directors of the Company be and hereby authorised to approve, finalise, modify, settle and execute such documents/deeds/writings/ papers/ agreements as may be required or considered necessary by the Board and do all such acts, deeds, matters and things as it may in its absolute discretion deem necessary, proper or desirable and to settle any question or difficulty that may arise in respect of the borrowing(s) aforesaid; and further, to execute all deeds, documents and writings and take all such other steps as may be necessary or desirable to give effect to this resolution. 6. To consider and, if thought fit, to pass, with or without modification(s), the following resolution as a Special Resolution: RESOLVED THAT pursuant to Section 293 (1) (a) and other applicable provisions, if any, of the Companies Act, 1956 (the Act), the consent of the Company be and is hereby accorded to the Board of Directors of the Company to mortgage and/or charge, in addition to the mortgages and/ or charges created/to be created by the Company, in such form and manner and with such ranking as to priority and for such time and on such terms as the Board may determine, all or any part of the immovable and/or movable properties/assets of the Company wherever situated, both present and future, to or in favour of any Bank(s), Financial Institution(s), Company(ies) or other Organisation(s) or Institution(s) or Trustee(s) (hereinafter referred to as the Lending Agencies) in order to secure the loans (excluding temporary loans obtained from the Companys c) The Register of members and the Share Transfer Books of the Company will remain closed from 21st September, 2011 to 28th September, 2011 (both days inclusive). d) Payment of dividend on equity shares, as declared at By Order of the Board For PAREKH ALUMINEX LIMITED Amitabh Parekh Chairman & Managing Director Registered Office: 601, Auto Commerce House, Kennedy Bridge, Nana Chowk, Mumbai - 400 007, INDIA Mumbai, 31st August, 2011 Bankers in the ordinary course of business) advanced/to be advanced by such lending agencies to the Company together with interest at the respective agreed rates, compound/ additional interest, commitment charges, premium on prepayment on redemption, costs, charges, expenses and all other monies payable by the Company in respect of the said borrowings. FURTHER RESOLVED THAT the Board of Directors of the Company be and hereby authorised to do all such acts, deeds, documents or writings as are necessary or expedient, on behalf of the Company for creating the aforesaid mortgages and/or charges as it may in its above resolution. absolute discretion deem necessary or expedient for such purpose and for giving effect to
ORDINARY BUSINESS:
1. To receive, consider and adopt the Profit and Loss Account for the financial year ended 31st March, 2011 and the Balance Sheet as at that date together with the reports of the Board of Directors and Auditors thereon. 2. To declare dividend on equity shares. 3. To appoint a Director in place of Mr. Kiran C. Parikh, who retires by rotation, but being eligible, offers himself for reappointment. 4. To appoint M/s. C. V. Pabari & Co., Chartered Accountants, retiring Auditors of the Company to hold office from the conclusion of this meeting until the conclusion of the next Annual General Meeting and to fix their remuneration.
SPECIAL BUSINESS:
5. To consider, and, if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: RESOLVED THAT, pursuant to Section 293 (1) (d) and all other applicable provisions, if any, of the Companies Act, 1956 (including any statutory modification or re-enactment thereof ) and the provisions of the Memorandum of Association and Articles of Association of the Company and in suppression of earlier resolutions passed by the members at the annual general meeting of the Company held on 30th September, 2010, the consent of the Company be and is hereby accorded to the Board of Directors (herein after referred to as the Board which term shall be deemed to include any committee thereof for the time being exercising the powers conferred on the Board of Directors by this resolution) of the Company to continue to borrow such sum or sums of money in any manner from time to time, as may be required for the purpose of the business of the Company, with or without security and
NOTES:
a) The relative Explanatory Statement as required by Section 173 of the Companies Act, 1956, in regard to the Special Business entered under items 5 & 6 is annexed hereto. b) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE SHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THEN FORTY EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.
the meeting, will be made to those members whose names appear on the Company Register of Members as on 20th September, 2011. Members are requested to notify immediately any change in their address. e) Pursuant to the provisions of Section 205A (5) read with Section 205C of the Companies Act, 1956 the amount of dividends for the Financial Year ended 31st March, 2011 and thereafter which remain unpaid and unclaimed for a period of seven years from the date of transfer to the Unpaid Dividend Account of the Company shall be transferred to the Investor Education and Protection Fund established by the central government and no claim shall lie against the said Fund or the Company for the amounts of dividend so transferred to the said Fund. Shareholders, who have not yet enchased their dividend warrants are therefore requested to make their claim to the Company without delay.
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f) Consequent to introduction of Section 109A of the Companies Act, 1956, members are entitled to make Nomination in respect of equity shares held by them in physical form. Members desirous of making nomination are requested to submit the Nomination Form (2B) enclosed with this Notice as per instructions mentioned therein. g) Companys shares have compulsorily gone in for dematerialisation since March, 2001. Hence, those members who want to opt for dematerialisation are requested to follow the procedure prescribed in this respect. h) Members holding shares in electronic form may please note that their bank account details as furnished by the respective Depositories to the Company will be printed on dividend warrant/ cheque/DD as per the applicable regulations of the Depositories and the Company will not entertain any direct request from such members for deletion of/change in such bank account details. i) Members who desire to get dividend being directly credited to their bank account are requested to submit Mandate Form (please use form enclosed herewith for this purpose) duly filled-in together with supporting documents to the Registrar & Share Transfer Agents. j) Members are requested to bring their Admission slips along with copy of the Report and Accounts to the Annual General Meeting. k) Members, who wish to obtain any information on the Company or view the accounts for the financial year ended 31st March, 2011 send their queries at least 10 days before the Annual General Meeting to the Secretarial Department at the Registered Office of the Company. l) The information as required to be provided under the Listing Agreement with the Stock Exchanges, regarding
the Directors who are proposed to be appointed/ reappointed is given hereunder: 1. Reappointment of Directors At the ensuing Annual General Meeting, Mr. Kiran C. Parikh retire by rotation and being eligible, offer himself for reappointment. Pursuant to Clause 49 of the Listing Agreement, the particulars of the aforesaid director are given below. Particulars of Director seeking re-election: a) Name of the Director Date of Birth Ed. Qualification Other Directorship :Mr. Kiran C. Parikh :16th December, 1940 :B.A., D.P.Ed. :None ITEM NO. 5 & 6
ANNEXURE TO NOTICE EXPLANATORY STATEMENT UNDER SECTION 173 (2) OF THE COMPANIES ACT, 1956
of raising funds through loan and debt instruments such as FCCBs/ECBS and debentures etc. Considering the financial requirements of borrowed funds in view of the business needs, the Company will require additional funds from time to time, and hence, the borrowing limit previously sanction by the members is proposed to be increased from ` 20,000 million to ` 50,000 million. The purpose of this resolution is to seek members consent for increase in the borrowing powers as set out in the resolution at Item no. 5 & 6. The ordinary resolution at Item no.5 & special resolution at item no. 6 is therefore submitted to the meeting for consideration and approval of members. None of the Directors of the Company is in any way concerned or interested in the said resolution.
Under Section 293(1)(d) of the Companies Act, 1956 (the Act), the Board of Directors of the Company cannot, except with the consent of the Company in general meeting, borrow money, apart from temporary loans obtained from the Companys bankers in the ordinary course of business, in excess of the aggregate of the paid-up capital and free reserves of the Company, that is to say reserves not set apart for any specific purpose. At the Annual General Meeting of the Company held on 30th September, 2010, the members had accorded consent to the Board of Directors for borrowings up to ` 20,000 million. The present limit of ` 20,000 million may not be sufficient to meet the growing demand of borrowed funds in view of the future plans of the Company and for the purpose
Member of the Committee :1. Audit Committee - Member 2. Shareholders/Investors Grievance Committee Member 3. Share Transfer Committee Member Mr. Kiran C. Parikh is an ex-principal and active social worker. He has strong background of administration and strategic planning. His rich experience of organisational matters and harmonising inter-personal relationship to achieve best out of human resources is valuable to the Company. His guidance on these matters helps the Company to achieve targets and improve productivity. It is, therefore, in the interest of the Company to avail his services as a member of the board. None of the Directors of the Company except Mr. Kiran C. Parikh may be considered to be concerned or interested in the said resolution.
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Directors Report
OPERATIONS:
To the Members, Your Directors are pleased to present the 17th Annual Report together with the audited accounts of the Company for the year ended 31st March, 2011 During the year under review, the total income increased to ` 9,041.28 million compared with ` 6,357.27 million for the year ended 31st March, 2010. The financial year 2010-11, the Company has maintained its growth. PBDIT and net profit after tax stood at ` 1,616.94 million and ` 672.51 million respectively compared with ` 1,105.06 million and ` 455.51 million for the
(` in million)
professional knowledge to the Boards decision making process whereby professional management team has been strengthened. The Board acknowledges his contribution in the growth of the Company. Necessary resolutions for reappointment of the Director are being put to the shareholders for their approval.
Performance:
The financial results of the Company for the year under review are as follows: Particulars Sales Other Income Total Expenditure (excluding interest, depreciation & write-offs) Profit before interest, depreciation & write-offs Interest Depreciation & write-offs Profit Before Tax (PBT) Provision for Income Tax (Excl. tax on Dividend) Profit After Tax (Available for appropriation) Appropriations Proposed Dividend Tax on Dividend Debenture Redemption Reserve General Reserves Balance carried forward 45.29 7.70 67.60 67.50 1,670.57 38.82 6.60 0 45.60 1,185.92 1,616.94 363.07 441.86 812.01 139.50 672.51 1,105.06 267.97 251.72 585.37 129.86 455.51 Current Year 9,023.46 17.82 7,424.34 Previous Year 6,341.56 15.71 5,252.21
corresponding previous year.
DISCLOSURE UNDER SECTION 217 OF THE COMPANIES ACT, 1956

Directors Responsibility Statement:
Pursuant to section 217 (2AA) of the Companies Act, 1956, Directors state as follows: a) that in the preparation of the Annual Accounts for the year ended 31st March, 2011 the applicable Accounting Standards has been followed along with proper explanation relating to material departures; b) that they have selected such accounting policies in consultation with statutory auditors and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended 31st March, 2011 and the profits of the Company for that year; c) that to the best of their knowledge and information, they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) that they have prepared the Annual Accounts for the year ended 31st March, 2011 on a ongoing concern basis.
Dividend:
Considering substantial increase in turnover and profits for the year, your Directors are extremely happy to recommend higher dividend of ` 3.50 per equity share i.e. 35% (previous year 30%) on the equity shares of 12.94 million of ` 10 each in respect of the financial year 2010-2011. Higher dividend on enhanced capital indicates that your directors believe that Company will achieve sustainable return on turnover for the rewards of the shareholders. This payment will result into an outflow of ` 45.29 million towards dividend and ` 7.70 million towards dividend tax. If approved, the dividend will be paid to those members whose names appear in the Register of Members of the Company as on the date of book closure as mentioned in the Notice.
Capital Overview:
During the year, there is no change in authorised and paid-up capital.
Board of Directors:
Mr. Kiran C. Parikh retires by rotation but being eligible, offer himself for reappointment. He has brought rich experience and
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Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo
Information as per Section 217 (1) (e) read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors Report for the year ended 31st March, 2011.
adoption of latest production techniques. Different shapes and sizes of moulds are acquired or fabricated for product development and improvement. Company constantly upgrades/refurbishes equipment and moulds to offer quality products and minimise production costs. It also helps in increased productivity and shortens production cycle. The technology is constantly absorbed and employees are provided on the job training so that the production system is operated at minimum cost. This results in lowest down time and higher production. Market research and customer feedbacks are used to design and develop new variety of AFCs. This provides an edge in retaining existing customers and gaining new customers for value added products.
Management Discussion & Analysis and Report on Corporate Governance:

As required in terms of the Listing Agreement with the Stock Exchange, a Management Discussion and Analysis Report and a Report on Corporate Governance are annexed forming part of this report.
compliance of conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this Report along with report on Corporate Governance.
Listing:
As stipulated under Clause 32 of the Listing Agreement, the names and addresses of Stock Exchanges on which the Companys equity shares are listed: 1. Bombay Stock Exchange Limited [BSE] Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400001 2. National Stock Exchange of India Limited [NSE] Exchange Plaza, Bandra Kurla Complex, Bandra East, Mumbai 400051 Your Company confirms that Annual listing Fees for the financial year 2011-12 have been paid to BSE and NSE.
Public Deposits :
The Company has not accepted any public deposit and as such, no amount on account of principal or interest thereon was outstanding on the date of Balance Sheet.
A. Conservation of Energy:
The Company believes in maintaining a clean environment which is our obligation to Mother Earth. This is achieved by controlling wastages and not polluting air and water used for production purpose. Since Company uses electricity for operation of plant and equipment, no harmful gas or liquids are generated. Automatic machines are regularly serviced and preventive maintenance help to keep energy (power) consumption very low. Consumption of raw material, its movements and wastages are highly controlled as per technical norms adopted by the Company to minimise cost and keep the environment clean and healthy. Companys entire production facility does not generate any air, water or solid pollution.
Subsidiary Companies:
The Company does not have any subsidiary company.
C. Foreign Exchange Earnings and Outgo:

During the year, the Companys foreign exchange transactions are as: [` in million] Current Year Previous Year Foreign exchange earnings Foreign exchange outgo 924.79 1,265.72 923.59 1,048.71
Insurance:
All the properties and insurable interests of the Company including Building, Plant & Machineries and Stocks have been adequately insured.
Auditors:
M/s. C. V. Pabari & Co., Chartered Accountants, Mumbai, the statutory auditors of the Company hold office up to the conclusion of the forthcoming Annual General Meeting of the Company and are eligible for reappointment. The Company has received confirmation from M/S. C. V. Pabari & Co. to the effect that their appointment, if made, would be in conformity with the limits prescribed in section 224 of the Companies Act, 1956.
Employees:
Your Directors express their deep appreciation for the un-relented co-operation and support rendered by the employees at all levels of the Company. Your Directors have laid emphasis on safe working culture in the organisation.
B. Technology Absorption, Research & Development and resultant benefits:

Company believes in continuous upgradation of technology and
Acknowledgement:
The Directors would like to thank the employees, shareholders, customers, suppliers, bankers, regulatory authorities and all the other business associates of the Company for their confidence and support to its Management.
STATEMENT OF PARTICULARS OF EMPLOYEES PURSUANT TO THE PROVISIONS OF SECTION 217 (2A) OF THE COMPANIES ACT, 1956 AND THE RULES MADE THEREUNDER AND FORMING THE PART OF DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH, 2011. [` in million] Name & Designation Mr. Amitabh Parekh Chairman & Managing Director * Apart from the above there are no other employees who are having a salary of more than ` 5 lacs per month. Salary & Perquisite Received 24.00 B. Com 17 Qualification Experience (Years) Date of commencement of employment 1st September, 1994 38 Age (Years) Previous employment held Nil
Accordingly, the approval of Members is sought at the Annual General Meeting for their appointment.
Compliance Certificate:
A certificate from the Auditors of the Company regarding
For and on behalf of the Board of Directors
Amitabh Parekh Chairman & Managing Director Mumbai, 31st August, 2011
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Annexure to the Directors Report
Management discussion and analysis annexed to the Directors Report
Management Discussion and Analysis:

The rising middle class and its conscious efforts to demand hygienic product was skillfully turned into a profitable opportunity. During the period under review our sales graph goes up from ` 6,341.56 million in 2009-10 to ` 9,023.46 million which is an appreciable performance of the Company. During the same period, net income rose from ` 455.51 million to ` 672.51 million. This kind of spectacular performance is a result of vision, long term planning, and meticulous implementation, dedicated efforts of employees and unfailing faith of shareholders in the management team. The industry in which the Company operates is at a very nascent stage in India as the usage is largely restricted to airlines and railways. However with increased awareness for health and hygiene the demand for AFCs and AFRs is expected to pick up over the next couple of years in a big way. Moreover, AFCs and AFRs are slowly and steadily replacing other packaging substitutes like plastic, porcelain and glass containers as AFCs offer various advantages; Aluminum Foil has amazing properties. It is light weight, aesthetic, attractive, resistant to odour, water, air, light, gas, oil and grease and possesses high thermal and electrical conductivity features. All this adds up to a highly versatile product that can be used in myriad applications from the traditional food industry to the hi-tech electronics and telecommunications industry. We have established good manufacturing practices in accordance with international standards. We have been accredited with certification from BRC (British Retail Consortium)
implying compliance with Global Standards for packaging & packaging materials. Presently, shares are listed at both BSE and NSE. They are regularly traded in active mode in single segment. Company is also aware about its social responsibilities and ethical responsibility. Company strives to provide a healthy, safe and secure working environment for its entire staff. It provides adequate on the job training, promotion and rewards for meritorious work. It also covers the employees with medical insurance. Our people are technically best in their knowledge and application. Management provides a climate which helps employees at all levels to realise their maximum potential. For needy and under privileged, Company provides helps by various means and ways to fulfil its social obligation. Similarly, other stake holders like suppliers, financial institutions, distributors etc are also rewarded so that a family bond is created among all these which ultimately has magnifying beneficial effect for all. Shareholders who are the pillars of the Company have been benefited through higher dividend and increased intrinsic value of their shares. This has to rise further in future as Company scales new heights.
The Company is getting the tax benefit for 100% Export Oriented Unit U/s 10B of Income Tax Act, 1961. Companys property and plants are fully insured against predictable perils. They are maintained and serviced periodically to facilitate continuous production. Employees are sent for training to acquire and upgrade their job skill. Modern shop floor practices are followed to reduce fatigue and increase productivity. Company considers employees as a business partner. Based on their performance they are rewarded and wherever necessary, imparted with skill and training so as to improve their contribution. This helps to maintain cordial industrial relations.
capacities have increased three times from the existing capacities with a wide range of product mix, which shall result in higher turnover & profitability of your Company. Company enjoys healthy position in the international market. Quality of the Companys product is best and comparable to any other products of World class suppliers. The expansion shall enable to capture the export market and the ever expanding retail market. Considering all these factors your board is very much optimistic about times to come. For and on behalf of the Board of Directors
Current year's outlook and capacity expansion:

On completion of expansion project in April, 2010, the installed
Business Performance:
The expansion project of ` 240 crores was completed in March, 2010 and commercial production began from April, 2010. Based on the enhanced installed capacities, which were put to use during the year, the Company could achieve turnover of ` 9,023.46 Million. However, the optimum utilisation of the capacities will be reflected in the sales for F.Y.2011-12
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Annexure to the Directors Report
Report on Corporate Governance annexed to the Directors Report

1. Company's Philosophy:
The Company believes in abiding by the Code of governance so as to be a responsible corporate citizen and to serve the best interest of all the stakeholders, viz., the employees, shareholders, customers, vendors and the society at large. The Company seeks to achieve this goal by being transparent in its business dealings, by disclosure of all relevant information in an easily understood Director Category Member of Board manner, and by fair to all stakeholders, by ensuring that the Companys activities are managed by a professionally competent and independent Board of Directors.
Board Meetings & Annual General Meeting (AGM):

During the year under review Seventeen Board Meetings were held in (i) 2010 -- 27th April, 15th May, 15th June, 28th July, 10th August, 13th September, 10th November, 15th November, 25th November, 14th December. (ii) 2011 7th January, 11th February, 21st February, 1st March, 11th March, 15th March, 21st March.
Statutory Auditors and Managing Director are permanent invitees and they have attended all the meetings. The meetings are also attended by Accounts Manager (in charge of accounts). The Committee discusses and reviews, inter-alia, following matters: (a) Internal control system and its compliance (b) Compliance with accounting standards and Code of Conduct (c) Related party transactions (d) Quarterly financial statements with a view to comply with all the legal requirements. (e) Advising the Board about implications of financial decisions
2. Board of Directors Composition:

Composition of the Board and the related information is furnished herewith :
Other Companies* Board Committees Chairman Member
The last AGM was held on 30th September, 2010 Details of attendance: Director No. of Board Meeting Attended Mr. Amitabh Parekh Mr. Rajendra Gothi Mr. Kiran C. Parikh Mr. Devanshu Desai 17 17 12 12 12 Whether attended last AGM Yes Yes No Yes Yes
Mr. Amitabh Parekh
Chairman & Managing Director (Executive)
1. Deepen Holding Ltd 2. AAP Securities Ltd. 3. AAP Racing and Stud Farms Limited 4. AAP Entertainment Limited 5. AAP Realtors Limited 6. AAP Hotel and Hospitality Limited 7. Arms Retails (India) Limited 8. AAP Equity Capital Ltd. 9. AAP Minerva Builtcon Limited 1. AAP Securities Ltd. 2. AAP Racing and Stud Farms Limited 3. Arsenal Bulls Celebrations Ltd. 4. Deepen Holding Ltd. 5. AAP Equity Capital Ltd. 6. AAP Entertainment Limited 1. Bombay Swadeshi Stores Limited 2. First Overseas Capital Ltd. 3. Sam Leaseco Limited 4. Gandhar Oil Refinery (INDIA) Limited 1. AAP Racing and Stud Farms Limited 2. AAP Securities Ltd
taken
4. Shareholders/Investors Grievance Committee:

The composition and attendance of the members at the Shareholders/Investors Grievance Committee are as follows: Name Status No. of Grievance Committee Meetings attended Mr. Rajendra Gothi Mr. Kiran C. Parikh Mr. Devanshu Desai Chairman Member Member 6 5 6
Mr. Rajendra Gothi
Executive Director
Mr. Vikram Mordani
3. Audit Committee:
The Audit Committee consisting of one Executive Director and two Non-Executive independent directors held its meeting on 15th May, 2010, 28th July, 2010, 10th August, 2010, 10th November, 2010 and 11th February, 2011 during the financial year 2010-2011. The composition and attendance of the members at the Audit Committee meetings are as follows: Name Status No. of Audit Committee Mr. Vikram Mordani Mr. Rajendra Gothi Mr. Kiran C. Parikh Chairman Member Member Meetings attended 5 5 5
Mr. Devanshu Desai
Non-Executive Independent
Details of complaints received, redressed and pending during the financial year Pending at the beginning of the year Received during the year Redressed/replied during the year Pending at the year end : NIL : 38 : 38 : NIL
Mr. Kiran C. Parikh
Non-Executive Independent Non-Executive Independent
Mr. Vikram Mordani
*Excludes Private Limited and Foreign Companies.
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5. Share Transfer Committee:

The composition and attendance of the members at the Share Transfer Committee Meetings are as follows: Name Status No. of Share Transfer Committee Meetings attended 6 5 6
7. Remuneration paid to Non-Executive Directors during the year ended 31-032011:

(Amount in `)
9. General Body Meetings:

Last three Annual General Meetings were held as under: Date 30-09-2010 Location Malabar Hill Club Ltd., B. G. Kher Marg, Mumbai-400 006 Malabar Hill Club Ltd., B. G. Kher Marg, Mumbai-400 006 Malabar Hill Club Ltd., B. G. Kher Marg, Mumbai-400 006 Time 4.00 P.M
audit to reconcile the total admitted capital with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and the total issued and listed capital. The audit confirms that the total issued/paid-up capital of the Company is in agreement with the total number of shares in physical form and the total number of dematerialised shares held with NSDL and CSDL. 11.00 A.M.
Name
Board Fee 30,000 30,000 30,000
Committee Fee 10,000 5,000 7,500
Total Remuneration 40,000 35,000 37,500
Mr. Rajendra Gothi Mr. Kiran C. Parikhi `Mr. Devanshu Desai
Chairman Member Member
Mr. Kiran C. Parikh Mr. Devanshu Desai Mr. Vikram Mordani
30-09-2009
12. Means of Communication:

a) Half-yearly report is not sent to each shareholder. However, 9.30 A.M. the same is published in the leading English and Regional language newspapers and communicated to the stock exchanges. b) Quarterly results are published in the leading English and Regional language newspapers. c) Annual audited results, on approval by Board, are also published in the same way. They are also put on Companys website. d) Companys website: www.parekhaluminex.com e) Management discussion and analysis report forms part of the Directors' Report.
09-08-2008
6. Debenture Issue Committee:

The composition and attendance of the members at the Debenture Issue Committee Meetings are as follows: Name Status No. of Debenture Issue Committee Meetings attended 2 2 2 2
Except sitting fee and dividend on equity shares, held by NonExecutive Directors, no other payment is made to them.
There were no resolutions requiring approval through Postal Ballot.
10. Code of Conduct:

The Company has a Code of Conduct for Directors and senior management that reflects high standard of ethical business practices. The Directors and senior management of the Company have affirmed their adherence to the Code of Conduct with a view to avoid conflict of interest in financial and commercial transactions which are material in nature between them and the Company. As required by Clause 49 of the Listing Agreement, the Managing Directors Declaration on the Code of Conduct has been annexed to this report.
Mr. Amitabh Parekh Mr. Rajendra Gothi Mr. Vikram Mordani Mr. Devanshu Desai
Chairman Member Member Member
8. Dividend History of the Company:

Year % of Final Dividend Mar-04 8.00 Mar-05 10.00 Mar-06 12.00 Mar-07 16.00 Mar-08 20.00 Mar-09 25.00 Mar-10 30.00 Mar-11 35.00
13. Shareholder Information:

AGM date, time and venue:
Wednesday, 28th September, 2011, at 4.00 P.M. at The Bombay Presidency Club Limited, 157, Arthur Bunder Road, Colaba, Mumbai - 400005
11. Other Disclosures:

A. Materially significant related party transactions: Disclosure on materially significant related party transaction i.e. transactions of the Company which are materially significant with its promoters, Directors, with the management or with relatives of Directors that may have potential conflict with the interest of the Company at large. There are no materially significant related party transactions that may have potential conflict with the interest of the Company at large. B. No penalties/stricture have been imposed on the Company by any regulatory authority for non-compliance of any laws on any matter related to capital markets during the last three years.
0.35 0.3 0.25 0.2 0.16 0.1 0.08 0.12
Financial Year :
Financial year of the Company is from April to March each year
Date of Book Closure :

Wednesday, 21st September, 2011 to Wednesday, 28th September, 2011 [both days inclusive]
Dividend payment date:

Dividend once declared shall be paid on and from 3rd October 2011
Listing on Stock Exchanges :

The Companys equity shares are listed at 1) Bombay Stock Exchange Limited (BSE) 2) National Stock Exchange (NSE).
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
C. Secretarial Audit: A qualified practicing Company Secretary carried out a secretarial
% of Final dividend
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Shares are listed at BSE in the Non-Specified Securities (B2 Group) and at NSE they are listed "Capital Market (Equities) Segment" under "EQ" series.
International Securities Identification Number:

ISIN Number for NSDL/CDSL:
INE 620 C 01013
Stock Code - (Physical) :

PARAL~532606 (at BSE) PARAL~(at NSE)
Stock Price Data :

Shares of the Company are being actively traded both at BSE as well as at NSE.
Stock Market price data, high and low price of equity shares on Bombay Stock Exchange Ltd. & National Stock Exchange of India Ltd. Are as under:
Date High (`) NSE Low (` ) No. of Shares Traded 80,82,671 69,49,953 3,97,965 6,42,441 9,23,360 1,57,03,195 19,12,154 8,56,712 15,79,606 8,79,470 3,91,518 3,20,134 High (`) BSE Low (`) No. of Shares Traded 86,13,047 72,87,363 5,79,062 6,77,276 9,23,172 1,10,25,972 17,36,169 9,24,842 11,84,650 7,98,371 4,18,398 3,08,036
The details of shares traded at BSE are given in the following table:
Share Performance V/s BSE Sensex BSE Sensex Date April, 2010 May, 2010 June, 2010 July, 2010 August, 2010 September, 2010 October, 2010 November, 2010 December, 2010 January, 2011 February, 2011 March, 2011 High 18,047.86 17,536.86 17,919.62 18,237.56 18,475.27 20,267.98 20,854.55 21,108.64 20,552.03 20,664.80 18,690.97 19,575.16 Low 17,276.80 15,960.15 16,318.39 17,395.58 17,819.99 18,027.12 19,768.96 18,954.82 19,074.57 18,038.48 17,295.62 17,792.17 PAL share prices High 260.05 342.90 283.00 328.60 351.55 516.70 550.00 604.00 532.00 383.25 277.00 287.30 Low 137.00 239.10 234.90 270.10 281.00 309.10 464.05 424.00 208.00 235.25 213.00 229.05 Apr, 2010 May, 2010 Jun, 2010 July, 2010 Aug, 2010 Sep, 2010 Oct, 2010 Nov, 2010 Dec, 2010 Jan, 2011 Feb, 2011 Mar, 2011 260.05 342.40 238.20 328.00 352.00 517.00 549.60 604.80 534.00 380.90 276.70 286.30 137.00 238.25 234.80 267.50 280.00 307.15 465.25 415.00 208.35 235.60 212.25 228.95
260.05 342.90 283.00 328.60 351.55 516.70 550.00 604.00 532.00 383.25 277.00 287.30
137.00 239.10 234.90 270.10 281.00 309.10 464.05 424.00 208.00 235.25 213.00 229.05
Share Transfer System :

Share transfer request received in respect of physical form are processed within 30 days if all requisite documents are submitted. Similarly physical shares received for dematerialisation are processed and completed normally within a period of 15 days. Such transfers are processed by TSR Darashaw Ltd.
TSR Darashaw Limited Bungalow No.1, E Road Northern Town, Bistupur, Jamshedpur 831 001 Tel: 0657 2426616, Fax: 0657 2426937 Email : [email protected]
TSR Darashaw Limited Tata Centre, 1st Floor, 43, Jawaharlal Nehru Road, Kolkata 700 071 Tel : 033 22883087, Fax : 033 22883062 Email : [email protected]
PAL Share Price Performance Vs BSE Index (2010-11) 800 600

BSE Sensex in 00
(formerly known as Tata Share Registry Ltd.), which is registered with SEBI as Category I Registrar. Their addresses and details of contact persons are as follow:
TSR Darashaw Limited

6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400011 Tel. : 022-6656 8484 Fax : 022-6656 8494 E-mail: [email protected] website : www.tsrdarashaw.com
PAL Share prices
TSR Darashaw Limited Plot No.2/42, Sant Vihar, Ansari Road, Daryaganj, New Delhi 110 002 Tel : 011 23271805, Fax : 011 23271802 Email : [email protected]
400 200 0
Branches
Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar10 10 10 10 10 10 10 10 10 11 11 11 1 TSR Darashaw Limited 503, Barton Centre, 5th Floor 84, Mahatma Gandhi Road, Bangalore - 560 001
BSE Sensex in 00 PAL Share prices
180.5 175.4 179.2 182.4 184.8 202.7 208.5 211.1 205.5 206.6 186.9 195.8 260.1 342.9 283.0 328.6 351.6 516.7 550.0 604.0 532.0 383.3 277.0 287.3
Agent:
Shah Consultancy Services Limited Sumatinath Complex, 2nd Dhal,Pritam Nagar, Ellisbridge Ahmedabad 380 006 Telefax : 079 2657 6038 Email : [email protected]
Tel : 080 25320321, Fax : 080-25580019 Email : [email protected]
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Shareholding Pattern as on 31st March, 2011:
Dematerialisation of Shares & Liquidity:

The Shares of the Company are available for trading under both the depository systems in India National Securities
Depository Ltd. (NSDL) & Central Depository Services (India) Ltd. (CDSL) 91.72 % (1,18,69,147 of total equity shares) of the shares are held in electronic form as on 31st March, 2011.
Category Foreign Companies Non Resident Indians
No. of Shareholders 7 1 360 12 5,108 5,488
No. of Shares Held 15,15,200 2,700 20,48,522 47,87,400 45,86,178 1,29,40,000
Percent to Shareholding 11.71 0.02 15.83 37.00 35.44 100.00
Sr. No. 1 2 3
Category NSDL CDSL PHYSICAL Total
Total shares 80,99,611 37,69,536 10,70,853 1,29,40,000
% of equity 62.59 29.13 8.28 100.00
Foreign Inst. Investors Financial Institutions Mutual Funds Banks Other Bodies Corporate
The Secretarial Audit Report from a Company Secretary in practice confirming that the total issued capital of the Company is in agreement with the total number of equity shares in physical form and the total number of dematerialised equity
shares held with NSDL and CDSL, is placed before the Board on a quarterly basis. A copy of the Audit Report is submitted to the Stock Exchanges where the equity shares of the Company are listed.
Promoters Resident Individuals TOTAL
Distribution of Shareholding as on 31st March, 2011:

Group of Shares Holdings Amount (` ) 1 to 5000 5001 to 10000 10001 to 20000 20001 to 30000 30001 to 40000 40001 to 50000 50001 to 100000 Greater than 100000 Grand Total 4,92,535 2,18,433 1,79,505 1,07,201 72,555 1,01,493 1,98,112 1,15,70,166 1,29,40,000 49,25,350 21,84,330 17,95,050 10,72,010 7,25,550 10,14,930 19,81,120 11,57,01,660 12,94,00,000 3.81 1.69 1.39 0.83 0.56 0.78 1.53 89.41 100.00 4,941 266 115 43 20 22 26 55 5,488 Percent to Capital No. of Holders Percent To Total Holders 90.03 4.85 2.10 0.78 0.36 0.40 0.48 1.00 100.00
Plant Location:
Survey No.204/1, Plot No.2, Near Dadra Check Post, Village Dadra-396 191, U.T. of D. & N.H., INDIA Survey No.207, Plot No.4, Near Dadra Check Post, Village Dadra-396191, U.T. of D. & N.H., INDIA Survey No.208, Unit No.8, Near Dadra Check Post, Village Dadra-396191, U.T. of D.& N.H., INDIA
Address for Correspondence:

For Physical & Demated Shares
TSR Darashaw Ltd. 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400011 Tel: 91-22-66568484
Companys Share Department at:

G-11, Everest Building, 8th floor, Tardeo Road, Tardeo, Mumbai - 400 034, INDIA Tel.: +91-22-23521777
For and on behalf of the Board of Directors
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35
To, The Board of Directors, PAREKH ALUMINEX LIMITED
CERTIFICATE
(d) We have also indicated to the Auditors and the Audit Committee: (i) Significant changes in the internal controls with respect to financial reporting during the year and the achievement of adequate internal controls; (ii) Significant changes in accounting policies during the year and these have been disclosed in the notes to the financial statements. (e) To the best of our knowledge and belief, there are no instances of significant fraud involving either the management or employees having a significant role in the Company's internal control systems with respect to financial reporting. However, during the year there were no such changes or instances. The Members of To
AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE
We have reviewed the financial statements and the cash flow statement of Parekh Aluminex Limited for the financial year 2010-11, and certify that: (a) These statements to the best of our knowledge and belief: (i) do not contain any materially untrue statements or omit any material facts or contain statements that might be misleading; (ii) present a true and fair view of the Company's affairs and of the results of operations and cash flow. They are in compliance with existing accounting standards, applicable laws and regulations. (b) To the best of our knowledge and belief, there are no transactions entered into by the Directors and senior management during the year, which are fraudulent, illegal or volatile of the Company's Code of Conduct. (c) We accept overall responsibility for establishing and maintaining internal control system for financial reporting and have evaluated the effectiveness of the internal control systems of the Company for such reporting. We have disclosed to the Auditors and the Audit Committee, deficiencies, if any, in the design or operation of such internal controls, of which we are aware, and the steps taken and/or proposed to be taken to rectify these deficiencies.
PAREKH ALUMINEX LIMITED, We have examined the compliance of conditions of corporate governance by Parekh Aluminex Limited for the year ended on 31st March, 2011, as stipulated in clause 49 of the Listing Agreement of the said Company with the Stock Exchanges. The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance with the conditions of Corporate Governance as stipulated in the said clause. It is neither an audit nor an expression of opinion on the financial statements of the Company. We have conducted our review on the basis of the relevant records and documents maintained by the Company and furnished to us for examination and the information and explanations given to us by the Company. Based on such a review, and to the best of our information and according to the explanations given to us, in our opinion, the Company has complied, to the extent applicable, with the conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement of the Stock Exchanges of India. We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.
Amitabh Parekh (Chairman & Managing Director)
Vallabh Rathi (Sr. Accounts Manager) For C.V. Pabari & Co.
Mumbai, 31st August, 2011
Chartered Accountants Firm Registration No.114402 W
CERTIFICATE OF COMPLIANCE WITH THE CODE OF CONDUCT

As required under Clause 49 of the Listing Agreement(s) with Stock Exchanges relating to Corporate Governances, I hereby declare that all the Board Members and the Senior Management Personnel of the Company have affirmed compliance with the Companys Code of Conduct during the financial year 2010-11. Mumbai, 31st August, 2011 Chetan Pabari: Proprietor Membership No. 047924
Amitabh Parekh Chairman and Managing Director Mumbai, 31st August, 2011
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37
Auditors Report
To the Members, Parekh Aluminex Limited We have audited the attached Balance Sheet of Parekh Aluminex Limited as at 31st March, 2011 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. 1. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An Statement dealt with by this report are in agreement with books of account of the Company; (d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards as referred to in subsection (3C) of Section 211 of the Companies Act, 1956; (e) On the basis of the written representations received from the Directors, as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the Directors of the Company are disqualified as on 31st March, 2011, from being appointed as a Director, in terms of clause (g) of sub-section (1) Section 274 of the Companies Act, 1956; (f) In our opinion, and to the best of our information and according to the explanations given to us, the said accounts, read together with the Companys Accounting Policies and the Notes on Accounts of Schedule J thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Company As at 31st March, 2011; (ii) in the case of the Profit & Loss Account, of the Profit for the year ended on that date and (iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date. For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W
Financial section
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) Section 227of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: (a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; (b) In our opinion, proper books of account as required by law, have been kept by the Company so far as it appears from our examination of such books of the Company; (c) The Balance Sheet, Profit & Loss Account and Cash Flow
Chetan Pabari Proprietor Mumbai, 31st August, 2011 Membership No: 047924
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Annexure to the auditors report

Referred to in paragraph 3 of our Report of even date to the members of Parekh Aluminex Limited on the accounts for the year ended 31st March, 2011. 1. In respect of Fixed Assets: (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. (b) The Company has a programme for physical verification of the Fixed Assets, which in our opinion is reasonable having regards to the nature of business. Accordingly, the Fixed Assets have been physically verified by the management at the end of the year and no material discrepancies were noticed on such verification. (c) During the year, Company has disposed off some of the fixed assets. In our opinion and according to the information and explanations given to us, fixed assets disposed off were not substantial and therefore has not affected the going concern assumption. 2. In respect of its inventories: (a) As explained to us, the inventory has been physically verified by the management during the year and partially at the close of the year. In our opinion the frequency of verification is reasonable. (b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) In our opinion and according to the information and explanations given to us and on the basis of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account. 3. (a) According to the information and explanations given to us, Company has not granted / taken any secured or unsecured loan to Companies, Firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. Therefore, sub-clause (b), (c), (d), (e), (f) and (g) of (iii) of the said Order are not applicable. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business with regard to the purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in the internal controls. 5. In respect of transactions entered in the registered maintained in pursuance of Section 301 of the Companies Act, 1956, (a) In our opinion and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into register maintained under Sections 301 have been so entered. (b) According to the information and explanations given to us and excluding certain transactions of purchase of goods and material of special nature for which alternate quotations are not available, where each of such transactions is in excess of ` Five Lacs in respect of any party, in our opinion, the transactions have made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time. However, with regard to the Management Service Contract with a party, as service is of specialized nature it is not possible to ascertain the market price for the same. 6. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public and therefore, the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the Company. In our opinion, Company has an internal audit system commensurate with the size and the nature of its business. statutory dues including Provident Fund, Income-Tax, Sales-Tax, Customs Duty and other statutory dues with the appropriate authorities during the year; (b) According to the records of the Company and information and explanations given to us, disputed Excise Duty demands aggregating to ` 2,26,818/- have been deposited but the matter is pending with Central Excise & Service Tax Appellate Tribunal. (c) According to the records of the Company and information and explanations given to us, disputed Income tax demands aggregating to ` 91,97,877/-. 10. The Company does not have accumulated losses as at the end of the year and the Company has not incurred cash losses during current and the immediately preceding financial year. 11. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to financial institutions and banks. 12. According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the company. 14. (a) Based on the records examined by us and according to the information and explanations given to us, we are of the opinion that the Company is not dealing in shares and securities and hence, the question of maintenance of proper records of transactions and contracts of dealing in shares and securities does not arise. (b) Based on our audit procedures and to the best of our knowledge and belief and according to the information and explanations given to us, the Company does not own any shares and securities in its own name. 15. According to the information and explanations given to us, the Company has given any guarantee of ` 125 Million for loans taken by others from banks and financial institutions. 16. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were prima facie, applied by the Company during the year for the purposes for which the loans were obtained. 17. According to the Cash Flow Statement and records examined by us and according to the information and explanations given to us, on overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice-versa. 18. The Company has not any made preferential allotment of shares to various parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956, during the year. 19. According to the information and explanations given to us and the records examined by us, the Company has issued Non- Convertible Debentures and created adequate security/charges during the year under review. 20. The Company has not raised any money by public issues during the year and hence, the question of disclosure and verification of end use of such money does not arise. 21. During the Course of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the course of our audit, nor have we been informed of such case by the Management.
For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W Chetan Pabari Proprietor Mumbai, 31st August, 2011 Membership No: 047924
7.
8. According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 209(1)(d) of the Companies Act,1956. 9. Statutory and Other Dues: (a) According to the records of the Company and information and explanations given to us, the Company has been generally regular in depositing undisputed
4.
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Balance Sheet As at 31st March, 2011

(` in Million) Schedules I SOURCES OF FUNDS 1) Shareholders' Funds a) Share Capital b) Reserves & Surplus 2) Loan Funds a) Secured Loans b) Unsecured Loans 3) Deferred Tax Liability Total II APPLICATIONS OF FUNDS 1) Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress 2) Current Assets, Loans & Advances a) Inventories b) Sundry Debtors c) Cash & Bank Balances d) Loans & Advances Less: Current Liabilities & Provisions Creditors for Deferred Payments Net Current Assets 3) Miscellaneous Expenditures Total G F 1,752.16 1,942.12 377.25 242.55 4,314.08 684.90 132.88 817.78 3,496.30 5.80 9,066.76 1,095.25 1,287.81 399.20 378.58 3,160.84 769.14 138.57 907.71 2,253.13 0.00 7,161.38 E 5,727.53 1,113.05 4,614.48 950.18 2,200.57 671.19 1,529.38 3,378.87 C D 3,525.52 1,840.01 18.06 9,066.76 2 ,695.29 1,364.11 38.56 7,161.38 A B 129.40 3,553.77 129.40 2,934.02 As at 31.03.2011 As at 31.03.2010
Profit and Loss account For the year ended 31st March, 2011
(` in Million) Schedules INCOMES Sales Other Incomes Total EXPENDITURES Raw Materials Consumed Manufacturing, Trading & Other Expenses Profit Before Interest & Depreciation Interest Depreciation PROFIT BEFORE TAX Less : Provision for Taxation Current Deferred PROFIT AFTER TAX Add : Balance of Profit from Previous Year Add : Excess/Short provision of I. Tax of earlier years, written back Total APPROPRIATIONS Proposed Dividend Tax on Proposed Dividend Debenture Redemption Reserve General Reserve Balance carried to Balance Sheet Total Basic and diluted earnings per share (in Rupees) 45.29 7.70 67.60 67.50 1,670.57 1,858.66 51.97 38.82 6.60 0 45.60 1,185.92 1,276.94 35.20 160.00 (20.50) 672.51 1,185.92 0.23 1,858.66 105.00 24.86 455.51 823.09 (1.66) 1,276.94 E H I 6,770.17 654.17 1,616.94 363.07 441.86 812.01 4,759.88 492.33 1,105.06 267.97 251.72 585.37 9,023.46 17.82 9,041.28 6,341.56 15.71 6,357.27 As on 31.03.2011 As on 31.03.2010
The Schedules referred to above form an integral part of the Accounts As per our attached report of even date For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W Chetan Pabari Proprietor Membership No. 047924 Mumbai, 31st August, 2011 Vikram Mordani Director Rajendra Gothi Executive Director For & on behalf of the Board Jitendra Lekhwani Company Secretary Amitabh Parekh Chairman & Managing Director
The Schedules referred to above form an integral part of the Accounts As per our attached report of even date For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W Chetan Pabari Proprietor Membership No. 047924 Mumbai, 31st August, 2011 Vikram Mordani Director Rajendra Gothi Executive Director For & on behalf of the Board Jitendra Lekhwani Company Secretary Amitabh Parekh Chairman & Managing Director
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Schedules forming part of the Balance Sheet & Profit and Loss Account
For the year ended 31st March, 2011 (` in Million) As at 31.03.2011 Schedule A As at 31.03.2010
(Contd...) Schedule E
Particulars
(` in Million)
FIXED ASSETS
GROSS BLOCK DEPRECIATION NET BLOCK
As on Additions Deduction year year ----0.03 --2.73 6.85 9.61 --
As at
Upto
For the
As at
As on
As on
SHARE CAPITAL
200.00 200.00 200.00 200.00
Bore wells Computers Electric Installations Factory Buildings Furniture & Fixtures
01.04.2010 during the during the 31.03.2011 31.03.2010 0.03 5.33 11.04 369.61 17.17 130.03 10.36 1,627.89 29.11 2,200.57 1,450.75 -12.03 10.53 579.55 17.05 0.31 9.45 2,907.65 -3,536.57 749.82 0.03 17.36 21.57 949.16 34.19 130.34 19.81 4,532.81 22.26 5,727.53 2,200.57 0.03 3.90 4.16 83.19 11.57 -4.20 549.75 14.39 671.19 419.47
year 31.03.2011 31.03.2011 31.03.2010 0.00 2.11 1.48 41.06 1.64 -1.20 392.33 2.04 441.86 251.72 0.03 6.01 5.64 124.25 13.21 -5.40 942.08 16.43 1,113.05 671.19 -11.35 15.93 824.91 20.98 130.34 14.41 3,590.73 5.83 4,614.48 1,529.38 -1.43 6.88 286.42 5.60 130.03 6.16 1,078.14 14.72 1,529.38 --
Authorised 2,00,00,000 (2,00,00,000) Equity shares of `10 each Issued Subscribed & Paid Up Equity Share Capital (I) 1, 29, 40,000 (1, 29, 40,000) Equity shares of ` 10/- each. Out of Which 63,100 equity shares are issued for Consideration Otherwise than cash. (Previous year 63,100 equity shares). Total
129.40 129.40
129.40 129.40
Land Office Equipments Plant & Machineries and Moulds Vehicles Total Previous Year
Schedule B
RESERVES & SURPLUS

214.15 1,601.45 67.60 1,670.57 3,553.77 146.65 1,601.45 00.00 1,185.92 2,934.02
General Reserve Share Premium Account Debenture Redemption Reserve Profit and Loss Account Total
As at 31.03.2011 Schedule F
As at 31.03.2010
CURRENT ASSETS, LOANS & ADVANCES

1,321.24 430.92 1,752.16 0 1,942.12 1,942.12 13.76 90.22 62.16 211.11 377.25 230.60 10.27 1.68 242.55 871.00 224.25 1,095.25 0 1,287.81 1,287.81 33.14 40.21 248.54 77.31 399.20 368.47 8.34 1.77 378.58
Schedule C
SECURED LOANS
1,055.52 00.00 1,402.91 1,292.38
Cash Credit Term Loan Working Capital facilities are secured by hypothecation of stocks and book debts. These are further secured by second charge on the fixed assets of the company. Term loans from banks are secured by equitable mortgage of land & building and hypothecation of plant & machineries and movable assets, both present and future. Non Convertible Debentures Secured by first pari-passu charge on fixed assets of the Company. Total
2,470.00 3,525.52
0.00 2,695.29
Schedule D
UNSECURED LOANS
1,840.01 1,840.01 1,364.11 1,364.11
From Directors & Others Total
Inventories Raw Materials Finished Goods (As valued and Certified by Directors) Total Sundry Debtors (Unsecured, Considered goods) i ) Debts outstanding for a period more than six months ii) Others Total Cash and Bank Balances Cash on hand Bank Balance with Scheduled Bank -In Current Accounts -In Fixed Accounts Margin money kept with banks Total LOANS & ADVANCES(Unsecured, Considered good) Advances recoverable in cash or in kind for the value to be received Deposits For Premises For Tenders Total
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(Contd...) As at 31.03.2011 Schedule G (` in Million) As at 31.03.2010 Schedule J ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
CURRENT LIABILITIES & PROVISIONS

329.09 195.81 524.90 160.00 684.90 132.88 817.78 121.37 542.77 664.14 105.00 769.14 138.57 907.71
Forming part of the Balance Sheet as at 31st March, 2011 and Profit & Loss Account for the year ended on that date
A. SIGNIFICANT ACCOUNTING POLICIES 1) System of Accounting a) Basis of Accounting The financial statements are prepared on historical cost convention basis and in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956, and the applicable Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006. Company follows the mercantile system of accounting. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. b) Use of Estimates The presentation of the financial statements in conformity with generally accounting principles requires the Management to make estimates and assumptions that affect the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates. 2) Fixed Assets & Depreciation (a) Fixed Assets are stated at their original cost. Such expenditure comprises purchase price, import duties, levies and any directly attributable cost of bringing the assets to their working condition. (b) Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in schedules XIV to the Companies Act 1956. (c) Depreciation on assets added / disposed off during the year is provided on pro-rata basis with reference to the period of use. (d) Assets costing upto ` 5,000/= are fully depreciated in the year of acquisition.
A. Current Liabilities Sundry creditors for Goods Sundry creditors for Others B. Provision for Income Tax C. Creditors for deferred payments Total Schedule H
RAW MATERIAL CONSUMED

871.00 7,427.08 8,298.08 1,321.24 6,976.84 224.25 430.92 (206.67) 6,770.17 714.45 4,986.87 5,701.32 871.00 4,830.32 153.81 224.25 (70.44) 4,759.88
II. RAW MATERIAL CONSUMED Opening Stock Add: Purchases Less: Closing Stock II. VARIATION IN THE STOCK OF FINISHED GOODS Opening Stock Closing Stock Total Schedule I
MANUFACTURING, TRADING & OTHER EXPENSES

23.43 26.95 12.20 352.74 27.97 8.06 25.11 0.17 14.76 14.50 2.25 109.92 3.83 27.46 3.28 1.54 654.17 16.92 19.23 8.56 263.09 24.83 7.31 15.86 0.12 11.26 11.95 2.40 78.27 3.15 24.88 3.18 1.32 492.33
Manufacturing Expenses Store & Spares Power & Fuels Rent Other Expenses Employees Remuneration & Benefits Salaries & Bonus Staff Welfare Expenses Managerial Remuneration Directors' Remuneration Directors' Sitting Fees Administrative & General Expenses Conveyance & Travelling Expenses Professional & Legal Fees Telephone Expense Other Expenses Selling & Distribution Expenses Brokerage & Commission Sales Promotion Expenses Insurance Audit Fees Total
3) Valuation of Inventory (a) Finished goods are valued at cost plus direct expenses related to it. (b) Raw Material is valued at cost. 4) Revenue Recognition Domestic Sales revenue are recognized on dispatch of the goods to the customers and stated net of returns. Export sales are recognised on date of bill of landing/airway bill. 5) Foreign Currency Transactions Foreign Currency transactions are accounted at the rates prevailing on the date of transaction. Exchange differences arising on foreign currency transactions settled during the year are recognised in the profit and loss account. All foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing at the date of balance sheet and resultant exchange differences are recognised in the profit and loss account for the year 6) Taxation Current tax is determined as the amount of tax payable in respect of the taxable income for the year. Deferred tax is recognised, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognised on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Minimum Alternate Tax (MAT) credit is recognised as an asset on the basis of the considerations that there being a convincing evidence of realisation of the asset and in the year in which the MAT credit becomes eligible to be recognised, the said asset is created by way of credit to the profit and loss account.
46
47
Schedule J
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd...)
Schedule J
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd...) (` in Million) Key Management Personnel and their relatives Current Year Previous Year Current Year Previous Year Associates Companies ----------------------0.84 0.38 -6.30 25.11 0.17 1.15 14.60 --0.84 0.33 0.88 1.50 15.86 0.12 1.20 10.97
7) Impairment of Assets Impairment is ascertained at each balance sheet date in respect of Cash Generating Units. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor. 8) Employee Benefits (i) As per the consistent accounting policies followed by the Company since inspection, the Company is not providing for any other benefit to employees except for Provident Fund to their permanent employees. (ii) Short term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered. 9) Borrowing Costs Borrowing costs attributable to acquisition, construction or production of qualifying assets are capitalized as part of such asset till the time the asset is ready for use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred. 10) Earnings Per Share The Company reports basic and diluted earnings per share in accordance with Accounting Standards 20, Earnings per Share issued by the ICAI. Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity share holders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. 11) Capital Work-In-Progress Project under commissioning and other Capital Work-In-Progress are carried at cost, comprising direct cost and related incidental expenses. 12) Cash Flow Statements Cash flow statements are prepared in accordance with Indirect Method as explained in the Accounting Standard on Cash Flow Statements (AS-3) notified under the Companies (Accounting Standards) Rules, 2006. 13) Provisions and Contingencies A provision is recognised when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle obligation, in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but are disclosed in the notes to the financial statement. A contingent asset is neither recognised nor disclosed. B. NOTES ON ACCOUNTS 1) Related Party Disclosures Disclosures as required by the Accounting Standard - 18 Related Party Disclosures are given below; a. List of related party Associated Companies 1. Deepen Holding Limited 2. AAP Securities Limited 3. AAP Racing and Stud Farms Limited 4. AAP Entertainment Limited 5. AAP Realtors Limited 6. AAP Hotel and Hospitality Limited 7. Arms Retails (India) Limited 8. AAP Equity Capital Limited 9. AAP Minerva Builtcon Limited Key Management Personnel Mr. Amitabh Parekh Chairman & Managing Director
b. Transaction with Related Party Nature of Transactions
Transactions Sales Purchases Professional Fees Salary Expenses Interest Expense Rental Expenses Directors Remuneration Directors Sitting Fees Car Hiring Charges Dividend on Shares
2) Segment Reporting Primary Segment Based on the guiding principle given in the Accounting Standard 17 Segment Reporting issued by the Institute of Chartered Accountants of India, the Companys primary segment are Aluminium Foil Containers, Lids & Rolls. Companys operation during the year predominately consists of Aluminium Foil Containers, Trays, Lids & Rolls. Hence, there is no separately reportable segment Secondary Segment Segment reporting of revenue for the Company is on the basis of the geographical location of the customers is as under: (` in Million) Revenue India U.K/ Europe U.S.A. Others Total Current Year 8,030.12 333.55 517.66 142.13 9,023.46 Previous Year 5,367.37 375.77 470.38 128.04 6,341.56 3) Contingent Liabilities (a) Disputed demand of Central Excise of ` 0.23 Million. And the matter is taken up before Central Excise & Service Tax Appellate Tribunal. The Company has made deposit of ` 0.23 Million with Central Excise & Service Tax Appellate Tribunal (Previous Year ` 0.23 Million). (b) According to the records of the Company and information and explanations given to us, disputed Income tax demands aggregating to ` 9.20 Million and the matter is pending in Appeal with Commissioner of Income Tax (Appeal) (Previous Year ` 7.31Million). (c) Outstanding L.C. & Bank Guarantee issued to clients / suppliers by Bankers secured by counter guarantee of the Company is ` 1,269.16 Million. (Previous Year ` 937.55Million). (d) Export obligation of ` Nil to be met against EPCG License availed. (Previous year ` Nil) (e) Guarantee given by the Company on behalf of others ` 125.00 Million (Previous year ` Nil) 4) Payment to Auditors For Audit Fees For Other capacity Current Year 1.54 0.67 2.21 (` in Million) Previous Year 1.32 0.67 1.99
5) In the opinion of the management, the Current Assets, Loans & Advances are expected to realise at least the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities have been made in the accounts.
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49
Schedule J
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd...)
Schedule J
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd...) Current Year 25.11 (` in Million) Previous Year 15.86
6) Closing stock has been taken, valued and certified by the management. 7) Information pursuant to paras 3, 4C and 4D of schedule VI to the Companies Act, 1956.(as certified by the Directors) a) Capacity and Production (` in Million) Product Unit Year Licensed Installed Actual Capacity Capacity Capacity Production P.A. P.A. P.A. (Pcs. in Million) (Pcs. in Million) i. Casseroles/Trays Containers/Dishes Pcs. pcs. pcs. Current Year Previous Year Current Year Previous Year Current Year Previous Year N.A. N.A. N.A. 5,750.00 4,000.00 98.00 75.00 1,590.00 1,200.00 3,650.00 2,860.00 65.00 54.00 1,050.00 867.00
h) Remuneration to whole time Directors Director Remuneration
The computation of net profits in accordance with Sec.198 read with Sec.309 (5) of the Companies Act, 1956 for the year ended on 31st March, 2011: (` in Million) Profit Before taxation as per Profit & Loss Account Add: Directors remuneration including Directors fees Depreciation charged in the accounts Less: Depreciation as per Sec.350 Net Profit as per Sec.309 (5) Ceiling on total remuneration to whole time Directors Actual remuneration to whole time Directors 812.01 25.28 441.86
ii. Aluminium Foils/Rolls iii. Lids b) Turnover and Stocks Year Current Year Previous Year c) Raw Material Consumption Year Current Year Previous Year Product
467.14 1,279.15 441.86 837.29 83.73 25.11
Opening Stock Pcs in Million ` in Million 89.69 61.28 224.25 153.81
Turnover / Sales Pcs in Million ` in Million 4,469.90 3,752.59 9,023.46 6,341.56
Closing Stock Pcs in Million ` in Million 384.79 89.69 430.92 224.25
8) Balances in respect of Sundry Debtors, Sundry Creditors, Loans & Advances and unsecured Loans are subject to confirmation. 9) Remittance in foreign currency on account of Dividends to N.R.I. : No. of Shareholders: No. of shares held: Dividend remitted [` in Million]: Dividend for the year: 10) Earnings per Share: i. Numerator used for calculating basic and diluted earnings per share Profit after Tax ii. Weighted average number of shares outstanding during the year iii. Nominal value of shares ` iv. Basic & diluted Earnings per Share ` Current Year Previous Year 672.51 Million 455.51 Million 1,29,40,000 1,29,40,000 10/10/51.97 35.20 Current Year 08 2007441 6.02 2009-10 Previous Year 09 2139000 5.35 2008-09
Quantity in Tons 41,530.00 28,884.00
` in Million 6,976.84 4,830.32 (` in Million) Previous Year 536.95 (` in Million) Previous Year 376.41 135.35 0.00 (` in Million) Previous Year 923.59 0.00 (` in Million) Previous Year 536.95 4,449.92
Aluminium Foils/Laminates/Reels/Sheets --
d) Value of Imports calculated on C.I.F. basis Raw Material e) Expenditure in Foreign Currency Plant & Machinery and Moulds Stores Power & Fuel f) FOB value of sales Exports of Goods Sale of Mould (Others) g) Imported and Indigenous Raw Materials 1. Imported 2. Indigenous Current Year 1,062.10 6,364.98 Current Year 922.09 2.70 Current Year 41.84 153.50 8.28 Current Year 1,062.10
11) As required by Accounting Standard (AS 28 ) Impairment of Assets the management has carried out the assessment of impairment of assets and no impairment loss has been recognised during the year. 12) Operating Leases (AS 19) Current Year i. The Company normally acquire offices, factory & vehicles on operating leases. The future minimum lease payment in respect of which as at 31st March, 2011 are as follows: Period - Payable not later than 1 year - Payable later than 1 year not later than 5 years - Payable later than 5 years ii. The Company has given property on lease and lease rentals are receivable as follows: Period - Receivable not later than 1 year - Receivable later than 1 year not later than 5 years - Receivable later than 5 years Previous Year
`40,04,222 `11,47,083 -
`27,24,875 `18,56,631 -
`24,00,000 `32,00,000 -
NIL 51
50
Balance Sheet Abstract and Companys General Business Profile

Schedule J ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd...) 1. 13) There are no amounts due and outstanding to be credited to Investor Education & Protection Fund. Current Year NA Previous Year NA (` in Million) Current Year Deferred Tax Assets/ (Liability) 20.50 Previous Year Deferred Tax Assets/ (Liability) (82.86) 2. Registration Details Registration No.: State Code: Balance Sheet Date: Capital raised during the year ( ` in Million) Public Issue: Preferential Issue : Warrants Issue : Rights Issue: Bonus Issue: Promoters Quota: Call Money: Position of mobilisation and deployment of Funds ( ` in Million) Total Liabilities: Total Assets: Sources of Funds: Paid-up Capital: Reserves & Surplus: Secured Loans: Unsecured Loans: Deferred tax liability: Application of Funds: Net Fixed Assets: Capital Work-in-progress: Net Current Assets: Miscellaneous Expenditures Performance of the Company Turnover (Gross Receipts): Total Expenditure: Profit before tax: Profit after tax: Earnings Per Share of ` 10 each (Basic): Dividend Rate including Special Dividend, if any - on Preference Shares: - on Equity Shares: Generic Names of Principal products, services of the Company Item Code No. (ITC Code) Product Description 11-80732 of 1994 11 31.03.2011 NIL NIL NIL NIL NIL NIL NIL 9,066.76 9,066.76 129.40 3,553.77 3,525.52 1,840.01 18.06 4,614.48 950.18 3,496.30 5.80 9,041.28 8,229.27 812.01 672.51 51.97 : -35% AA 3003 Aluminium Foil Trays / Containers / Casseroles, Lids for the same & Aluminium Foils Rolls.
14) Industrial license held 15) Break up of deferred tax assets (liability):
i. Difference between Books & Tax Depreciation
3.
16) a) Disclosure of Sundry Creditors under Current Liabilities is based upon the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Expenses as per Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 b) Details of dues to Micro, Small and Medium Enterprises as per Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 Sl. No. i) Particulars The principal amount and the interest due thereon remaining unpaid to any supplier - Principal amount - Interest thereon - Interest due & payable thereon Current Year
(` in Million) Previous Year
3.79 Nil 0.11
6.37 Nil 0.19
4.
c) Total amount due to various Small Scale Industrial (SSI) Undertakings is ` 4.94 Million. The above information regarding Small Scale Industrial Undertaking have been determined to the extent such party has been identified on the basis of information furnished by Company. 17) The Company has classified the various benefits provided to the employees as under : i) Defined Contribution Plan a) Provident Fund b) Superannuation Fund and Pension Scheme 1995
5.
The Company has recognized the following amounts in the Profit and Loss account which are included under Contribution to Provident Fund and Other Funds for their permanent employees. (In `) Current Year Previous Year Provident Fund 5,99,559 4,80,115 18) The Company has not incurred any expenditure for Research & Development Expenditures during the year under review. 19) Previous Year figures have been regrouped and rearranged wherever necessary to confirm to the current years presentation. 20) Additional Information as required under Part IV of Schedule VI to the Companies Act, 1956.
As per our attached report of even date For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W Chetan Pabari Proprietor Membership No. 047924 Mumbai, 31st August, 2011
For & on behalf of the Board Jitendra Lekhwani Company Secretary Amitabh Parekh Chairman & Managing Director
Vikram Mordani Director
Rajendra Gothi Executive Director
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53
Cash Flow Statement For the year ended 31st March, 2011
(` in Million) Current Year A. CASH FLOW FROM OPERATING ACTIVITIES: Net Profit before tax and extra-ordinary items Adjustments for: Interest Paid Interest Received Depreciation Operating profit before working capital changes Changes in: Trade and other receivables Inventories Trade Payables Cash generated from operations Interest paid Direct taxes paid Net Cash Flow from operating activities B. CASH FLOW FROM INVESTING ACTIVITIES: Purchase of fixed assets Payment for Capital Work-In-Progress C. CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from issue of Preferential Equity share Proceeds from issue of Warrants Proceeds from borrowings Secured Loans Proceeds from Unsecured Loans Interest received Dividend & Dividend Tax paid Expenses for issue of NCD Net Cash used in financing activities NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE COMMENCEMENT OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR As per our attached report of even date For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W Chetan Pabari Proprietor Membership No. 047924 Mumbai, 31st August, 2011 Vikram Mordani Director Rajendra Gothi Executive Director For & on behalf of the Board Jitendra Lekhwani Company Secretary Amitabh Parekh Chairman & Managing Director 812.01 363.07 (17.43) 441.86 Previous Year 585.37 267.97 (13.80) 251.72 1,091.26 (480.66) (226.99) 283.15 666.76 (267.97) (30.36) 368.43 (749.82) (1,445.05) (2,194.87) Nil Nil 1,415.48 557.60 13.80 (37.85) Nil 1,949.03 122.59 276.61 399.20
Auditors Certificate
We have examined the attached Cash Flow statement of Parekh Aluminex Limited for the year ended 31st March, 2011. The statement has been prepared by the Company in accordance with the requirements of listing agreement Clause 32 with the Stock Exchanges (BSE & NSE) and is based on and in agreement with the corresponding Profit & Loss account and Balance Sheet of the Company covered by our report dated 31st August, 2011 to the members of the Company. For C.V. Pabari & Co. Chartered Accountants Firm Registration No.114402W Chetan Pabari Proprietor Membership No. 047924
787.50 1,599.51
(518.28) (656.91) (124.22) (363.07) (131.60)
Mumbai, 31st August, 2011
(1,299.41) 300.10 (494.67) (194.57) (3,526.96) 2,428.69 (1,098.27) Nil Nil 830.23 475.90 17.43 (45.42) (7.25) 1,270.89 (21.95) 399.20 377.25
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The great thing in the world is not so much where we stand, as in what direction we are moving
Oliver Wendell Holmes

17th Annual Report

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Contents 02 03 04 08 09 11 13 13 14 16 17 18 22 26 28 38

Listing Business Presence Lineage

Headed by Mr. Amitabh Parekh (Chairman and Managing Director)

Profit after tax (` in million)

Listed on the National Exchange and Bombay Stock Exchange

Gross block (` in million)

Earnings per share (`)

ISO 9001:2000-certified by Intertack, Sweden

GMP (Good manufacturing process) certified

BRC (British Retail Consortium) accreditation

for robust export performance

5A-2 GOOD status awarded by Dun

Think Parekh Aluminex, think industry leadership.

PAT increased 47.64% from `455.51 million in 2009-10 to `672.51 million

EBIDTA margin increased from 17.38% in 2009-10 to 17.88%

Think food, think aluminium foil containers, lids and rolls.

Attractive past. Promising future. Highlights, 2010-11

Annual report 2010-11

Parekh Aluminex Limited

We strengthened volume and margins in 2010-11.

here is a sweeping transformation in Indian lifestyles, resulting in

Message to the shareholders

Amitabh Parekh Chairman and Managing Director

Annual report 2010-11

Parekh Aluminex Limited

Annual report 2010-11

Parekh Aluminex Limited

Global packaging industry

Indian packaging industry

Annual report 2010-11

Parekh Aluminex Limited

Introduced more than 50 new mould varieties

Indias population pyramid 2030E

(million pieces per annum)

Annual report 2010-11

Parekh Aluminex Limited

Performance 2010-11 vs 2009-10

Working capital management

Parekh Aluminex Limited

A slowdown in economy can adversely affect the Companys growth

Mr. Devanshu Desai : Director Mr. Vikram Mordani : Director

Substitute products could dampen business sustainability

Shareholders/Investors Grievance Committee

Mr. Devanshu Desai : Member

Share Transfer Committee

Mr. Devanshu Desai : Member

Inconsistent product quality could lead to customer attrition

Debenture Issue Committee

Registrar & Share Transfer Agent:

Technological obsolescence could impact product acceptance

Annual report 2010-11

Parekh Aluminex Limited

Annual report 2010-11

Parekh Aluminex Limited

Annual report 2010-11

Parekh Aluminex Limited

corresponding previous year.

DISCLOSURE UNDER SECTION 217 OF THE COMPANIES ACT, 1956

Annual report 2010-11

Parekh Aluminex Limited