MIRA INFORM REPORT

Report Date :

25.01.2012

IDENTIFICATION DETAILS

Name :	INDIA GLYCOLS LIMITED

Registered Office :	A-1, Industrial Area, Bazpur Road, Kashipur, Udham Singh Nagar – 244713, Uttarakhand

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	19.11.1983

Com. Reg. No.:	20-009097

Capital Investment / Paid-up Capital :	Rs.278.825 millions

CIN No.: [Company Identification No.]	L24111UR1983PLC009097

TAN No.: [Tax Deduction & Collection Account No.]	DELI04270A

PAN No.: [Permanent Account No.]	AAACI7246P

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturing and sale of alcohol based chemicals such as ethylene glycol, mono-ethylene glycol, ethylene oxide condensates / derivatives, etc.

No. of Employees :	1300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING

STATUS

PROPOSED CREDIT LINE

56-70

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

Maximum Credit Limit :	USD 17000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office/ Factory 1:	A-1, Industrial Area, Bazpur Road, Kashipur, Udham Singh Nagar – 244713, Uttarakhand, India
Tel. No.:	91-5947-275313/ 275317-275320/ 269000/ 269500
Fax No.:	91-5947-275315
Email:	iglho@vsnl.com ssingh@indiaglycols.net hs.bisht@indiaglycol.com mktgchem@indiaglycols.com industrialgases@indiaglycols.com ennature@indiaglycols.com naturalgums@indiaglycols.com spirits@indiaglycols.com purchase@indiaglycols.com projects@indiaglycols.com finance@indiaglycols.com careers@indiaglycols.com legal@indiaglycols.com admin@indiaglycols.com
Website :	http://www.indiaglycols.net http://www.indiaglycols.com

Head Office 1 :	C-124, Okhla Industrial Area, Phase I, New Delhi – 110 020, India
Tel. No.:	91-11-26815772
Fax No.:	91-11-26810390 / 26819410
E-Mail :	sridhar@indiaglycols.net

Head Office 2 :	Plot No.2B, Sector-126, Noida, Gutam Budh Nagar – 201 304, Uttar Pradesh, India
Tel. No.:	91-120-3090100/ 3090200
Fax No.:	91-120-3090111

Corporate Office :	3A, Shakespeare Sarani, Kolkata – 700 071, West Bengal, India

Factory 2:	E-1, Sector 15, GIDA, Gorakhpur – 273 209, Uttar Pradesh, India
Tel. No.:	91-551-2580352
Fax No.:	91-551-2580351

DIRECTORS

AS ON 31.03.2011

Name :	Mr. U.S. Bhartia
Designation :	Chairman and Managing Director
Date of Birth/ Age:	57 years
Qualification :	B.Com. (Hons.)
Other Directorships :	1. India Glycols Limited 2. Kashipur Holdings Limited 3. IGL Finance Limited 4. Shakumbari Sugar and Allied Ind. Limited. 5. Polylink Polymers (India) Limited 6. Hindustan Wires Limited

Name :	Ms. Jayshree Bartuia
Designation :	Non-Executive Director

Name :	Mr. Pradip Kumar Khaitan
Designation :	Non-Independent Non-Executive Director
Date of Birth/ Age:	70 Years
Qualification :	L.L.B
Other Directorships :	1. CESC Limited 2. OCL India Limited 3. Dalmia Bharat Enterprsies Limited 4. Electrosteel Castings Limited 5. Gillanders Arbuthnot and Company Limited 6. Graphite India Limited 7. Hindustan Motors Limited 8. Dhunseri Petrochem and Tea Limited. 9. Pilani Investment and Indus Corpn Limited 10.Woodlands Multispeciality Limited 11. TCPL Packaging Limited. 12. VISA Steel Limited 13. India Glycols Limited

Name :	Mr. Jitender Balakrishnan
Designation :	Director

Name :	Mr. Ravi Jhunjhunwala
Designation :	Independent Director
Date of Birth/ Age:	55 years
Qualification :	B.Com and MBA from Geneva
Other Directorships :	1. India Glycols Limited 2.HEG Limited 3.RSWM Limited 4.Maral Overseas Limited 5. Malana Power Company Limited 6. Indo Canadian Consultancy Servers Limited 7. BSL Limited 8.Ad Hydro Power Limited 9.Cheslind Textiles Limited 10. Bhilwara Energy Limited

Name :	Mr. Jagmohan N. Kejriwal
Designation :	Non-Executive Independent Director

Name :	Mr. Autar Krishna
Designation :	Non-Executive Independent Director

Name :	Mr. R.C. Misra
Designation :	Non-Executive Independent Director

Name :	Mr. M.K. Rao
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Lalit Kumar Sharma
Designation :	Company Secretary

Name :	Mr. Rakesh Bhartia
Designation :	Chief Executive Officer

Investors’ Grievance Committee:	· Mr. R.C Mishra, Chairman · Mr. Jagmohan N Kejriwal · Mr. Autar Krishna · Mr. U.S. Bhartia

Audit Committee:	· Mr. R.C. Mishra, Chairman · Mr. Autar Krishna · Mr. Jagmohan N. Kejriwal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2011)

Category	No. of Shares	Percentage of Holding

(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3,219,159	11.55
Bodies Corporate	12,011,706	43.08
Sub Total	15,230,865	54.63

(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	15,230,865	54.63

(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	596,571	2.14
Financial Institutions / Banks	11,610	0.04
Insurance Companies	560,565	2.01
Foreign Institutional Investors	26,005	0.09
Sub Total	1,194,751	4.28

(2) Non-Institutions
Bodies Corporate	2,330,923	8.36

Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	7,147,744	25.64
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	1,374,630	4.93

Any Others (Specify)	603,587	2.16
Non Resident Indians	584,959	2.10
Trust & Foundation	18,628	0.07
Sub Total	11,456,884	41.09

Total Public shareholding (B)	12,651,635	45.37

Total (A)+(B)	27,882,500	100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-

Total (A)+(B)+(C)	27,882,500	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and sale of alcohol based chemicals such as ethylene glycol, mono-ethylene glycol, ethylene oxide condensates / derivatives, etc.

Products :

Item Code No.

Product Description

29.05

Mono-Ethylene Glycol

34.02

Ethylene Oxide Condensates / Derivatives

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity *	Installed Capacity*	Actual Production#
KASHIPUR
Ethylene Glycol	MT	NA @	86500	69708
Ethylene Oxide	MT	NA @	24000	--
Di-ethylene Glycol	MT	NA @	6100	6340
Heavy Glycol	MT	NA @	400	316
E. O. Derivatives	MT	NA @	@@26000	106927**
Guar Gum Powder and Derivatives	MT	NA @	12000	7168
Ethyl Alcohol (Potable)	KBL	NA @	18000	4691
Industrial Gases Division			NM3/Hr
Oxygen	NM3	NA @	10400	13634421##
Nitrogen	NM3	NA @	2828	895090##
Argon	NM3	NA @	232	1241233##
CO2	MT	NA @	160 (MT/Day)	46102
EOCO2	MT	NA @	2400	2
GORAKHPUR
Ethyl Alcohol (Potable)	KBL	NA @	99000	30507
CO2	MT	NA @	--	--
Ennature Bio- Pharma	KGS	NA @	631000	5214

Notes:

* As certified by the Management and relied upon by the auditors, being a technical matter.

@@ Standard Capacity

** Net of captive consumption.

# Production as received in bonded tank farm.

@ Under the Industrial Policy Statement dated 24th July, 1991 and the notifications issued there under, no licensing is required for these products.

## Net of Evaporation loss.

*** Including CO2 received from Kashipur Nil (Previous year 354MT) net of transit loss Nil (Previous year 6 MT)

GENERAL INFORMATION

No. of Employees :

1300 (Approximately)

Bankers :

v State Bank of India

v State Bank of Patia

v Axis Bank Limited

v Punjab National Bank

v Union Bank of India

v IDBI Bank Limited

v Exim Bank

v State Bank of Hyderabad

v State Bank of Travancore

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)

Rupee Term Loans	5835.318	4092.517
Bank (Note 3)	26.477	1.656
Others (Note 3)
Foreign Currency Term Loans
Banks	659.784	1192.752
Buyer’s import Credit – Bank	3697.226	2553.866
Working Capital Loans From Banks (Including working capital demand loan Rs.202.100 Millions previous year Rs.480.139 Millions)	4396.808	3124.871

Total	14615.613	10965.662

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)

Fixed Deposits	17.968	74.280
From Body Corporate	261.400	0.000
Short Term Rupee Loan – Bank	--	250.000
Foreign Currency Term Loan Bank	--	29.969

Total	279.368	354.249
NOTES : The Term Loans inter-se, are secured / to be secured by mortgage of all immovable properties of the Company both present and future and hypothecation of all movable properties of the Company (save and except book debts) including movable machinery, machinery spares, tools and accessories, both present and future subject to prior charges created and / or to be created in favour of the bankers of the Company on stocks, book debts and other specified movable properties for working capital requirements/ Buyers Credit. (Amount due within one year Rs.1881.438 Millions. 2 Working Capital Loans from Banks are secured / to be secured by way of hypothecation of book debts and stocks including in-transit and second charge on all immovable properties of the Company. Buyers Credit facility is secured against non-fund based facility sanctioned to the Company. 3 Rupee Term Loans includes loans from Banks of Rs. 5.944 Millions and loans from others Rs. 11.477 Millions secured by hypothecation of Motor Vehicles purchased there under, Further Rupee Term Loans from others includes Rs. 15.000 Millions secured against bank guarantee. (Amount due within one year Rs. 6.748 Millions)


Banking Relations :	--

Auditors :
Name :	Lodha and Company Chartered Accountants
Address :	New Delhi, India

Other Related Parties: (Enterprises over which Key Management Personnel have significant influence)	· Ajay Commercial Company (Private) Limited · J.B. Commercial Company (Private) Limited · Kashipur Holdings Limited · Polylink Polymers (India) Limited · Hindustan Wires Limited

Subsidiaries :	· IGL Finance Limited · Shakumbari Sugar And Allied Industries Limited · IGL CHEM International Pte Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount

30000000	Equity Shares	Rs.10/- each	Rs.300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

27882500	Equity Shares	Rs.10/- each	Rs.278.825 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		278.825	278.825	278.825
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3867.834	3660.045	3509.025
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4146.659	3938.870	3787.850
LOAN FUNDS
1] Secured Loans		14615.613	10965.662	7776.388
2] Unsecured Loans		279.368	354.249	1436.889
TOTAL BORROWING		14894.981	11319.911	9213.277
DEFERRED TAX LIABILITIES		606.424	469.264	358.224

TOTAL		19648.064	15728.045	13359.351

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		10396.122	8021.258	7252.631
Capital work-in-progress		1357.192	3225.153	3399.284

INVESTMENT		572.016	411.911	130.123
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4239.568	2957.079	2151.919
	Sundry Debtors	1600.473	1159.611	693.404
	Cash & Bank Balances	1762.292	441.132	382.147
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2322.845	1685.337	1689.851
Total Current Assets		9925.178	6243.159	4917.321
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	1645.343	1109.042	955.626
	Other Current Liabilities	714.300	589.476	914.987
	Provisions	242.801	478.225	485.524
Total Current Liabilities		2602.444	2176.743	2356.137
Net Current Assets		7322.734	4066.416	2561.184

MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Foreign Currency Monetary Item Translation Difference		0.000	3.307	16.129

TOTAL		19648.064	15728.045	13359.351

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	15887.822	11092.339	9623.601
		Other Income	405.858	673.572	283.493
		TOTAL (A)	16293.680	11765.911	9907.094

Less	EXPENSES
		Manufacturing and Other Expenses	14604.261	10920.435	9535.897
		Increase/ Decrease in Stock	[227.410]	[494.523]	[68.576]
		Exceptional Item	--	[162.658]	474.367
		TOTAL (B)	14376.851	10263.254	9941.688

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1916.829	1502.657	[34.594]

Less	FINANCIAL EXPENSES (D)		863.064	600.949	770.563

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1053.765	901.708	[805.157]

Less/ Add	DEPRECIATION/ AMORTISATION (F)		686.176	590.716	567.345

	PROFIT BEFORE TAX (E-F) (G)		367.589	310.992	[1372.502]

Less	TAX (H)		111.353	111.040	[453.586]

	PROFIT AFTER TAX (G-H) (I)		256.236	199.952	[918.916]

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2710.860	2569.840	3521.378

Less	APPROPRIATIONS
		Transfer to General Reserve	10.000	10.000	0.000
		Proposed Dividend	41.824	41.824	27.883
		Corporate Dividend Tax	6.785	7.108	4.739
		Excess Corporate Dividend Tax Provision Written Back	(0.162)	--	--
	BALANCE CARRIED TO THE B/S		2908.649	2710.860	2569.840

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6572.037	4010.609	2238.458
	TOTAL EARNINGS		6572.037	4010.609	2238.458

	IMPORTS
		Raw Materials	4117.687	2757.882	724.069
		Stores & Spares	483.758	300.075	31.653
		Capital Goods	54.111	0.771	505.969
		Traded Goods	383.180	4.334	0.000
	TOTAL IMPORTS		5038.736	3063.062	1261.691

	Earnings Per Share (Rs.)		9.19	7.17	[32.96]

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	6313.900	5715.500
Total Expenditure	5488.300	4634.400
PBIDT (Excl OI)	825.600	1081.100
Other Income	1.800	0.800
Operating Profit	827.400	1081.900
Interest	267.800	228.800
Exceptional Items	0.000	(264.600)
PBDT	559.600	588.500
Depreciation	184.500	195.400
Profit Before Tax	375.100	393.100
Tax	117.400	111.300
Provisions and contingencies	0.000	0.000
Profit After Tax	257.700	281.800
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	257.700	281.800

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.57	1.70	(9.33)

Net Profit Margin (PBT/Sales)	(%)	2.31	2.80	(1.43)

Return on Total Assets (PBT/Total Assets}	(%)	1.81	2.18	(11.28)

Return on Investment (ROI) (PBT/Networth)		0.09	0.08	(0.36)

Debt Equity Ratio (Total Liability/Networth)		4.22	3.43	3.05

Current Ratio (Current Asset/Current Liability)		3.81	2.87	2.09

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject is one of the manufactures of Glycols, Ethoxylates and PEGs, Performance Chemicals, Glycol Ether and Acetates, Guar Gum and Potable Alcohol. India Glycols Limited is the First company in the world to produce Ethylene Oxide (EO) / Mono Ethylene Glycol (MEG) from renewable agro route based on molasses, since 1989. The company is the manufacturers of Glycols, Ethoxylates, Performance Chemicals, Glycol Ethers and Acetates, Guar Gum and Potable Alcohol.

The company has more than 1,000 customers in various such as Textile, Agrochemical, Oil and Gas, Personal Care, Pharmaceuticals, Brake Fluids, Detergent, Emulsion Polymerisation and paints etc.

India Glycols (IGL) was promoted by Vam Organics to manufacture 20,000 tpa of monoethylene glycol (MEG) at Kashipur, UP. It produces diethylene glycol (DEG) and triethylene glycol (TEG) as by-products and ethylene oxide (EO) as an intermediary

The company, controlled by Delhi based Bhartia family was incorporated as UP Glycols, a public limited company and subsequently the name was changed to India Glycols with effect from Sept.'86.

The company has its plant located at Kashipur in Uttranchal. The company has one Subsidiary namely IGL Finance Limited The companies another subsidiary CDL International Limited is to be amalgamated with the company as per Court orders.

The company had technical tie-up with Scientific Design Company, US, for the know-how to convert ethanol into MEG. Further it tied up with Sanyo Chemical Industries Limited of Japan during 1995-96 to secure world class technology in the field of Industrial Surfactants covering major industries like Textiles, Toiletries etc.

The company diversified into the manufacture of ethylene oxide condensates/derivatives and its new plant for this at a cost of Rs.400.000 millions has commenced commercial production in Feb.'95. The Company set up an 100% Export Oriented Unit for manufacture of Guar Gum Powder and its derivatives and it has been registered as a 100% EOU.

The company has also successfully commissioned speciality surfactants project in collaboration with Sanyo Chemical Industries Limited in September 1997.

During 2000-2001, CDS International Limited became a subsidiary of the company.

During 2001-02 the expansion of EO/MEG was completed and the production for the expanded capacity has also been commenced.

In February 2005, the company commissioned enhanced capacity of MEG. The company undertook a scheme to produce RAB (concentrated sugarcane Juice) to product ethanol to supplement feed stock requirement for expanded capacity of MEG. The unit will be fully completed and commissioned by December 2005.

The Hon'ble High Court of Uttaranchal vide their order dated July 15, 2004 and Hon'ble High Court of Karnataka vide their order dated September 12, 2005 amended on January 30, 2006 have approved the scheme of amalgamation of M/s. CDS International Limited (100% subsidiary of India Glycols Limited) with India Glycols Limited.

During 2005-2006, the company commenced production at the newly set up facility to manufacture RAB on 1st February 1, 2006. Production at the new industrial gases plant commenced in January, 2006 and capacity of Oxygen, Nitrogen, Argon are installed with 10400 NM3/Hr, 2828 NM3/Hr, 232 NM3/Hr. A new distillery plant has been set up with an annual production capacity of 66,000 KBL, at Gorakhpur in Eastern UP. The plant has been commissioned in March 2006.

The company is enhancing the existing capacity of Glycol Ether division from 17000 MT to 44000 MT. Glycol Ether Acetate capacity is also increased to 18000 MT. The company is diversifying in to the field of herbal farming and for the purpose herbal farms have been leased from Uttaranchal State Government. The company is also setting up Herbal Extraction unit under Foreign Technology Collaboration. The company is also adding up a Chiller Plant and carrying out modification to use methane blast in place of nitrogen blast. The company is setting up a Turbo Generator of 12 MW capacity.

PERFORMANCE

During the year, performance of the Company has shown improvement consequent to the improvement in the overall economic situation worldwide. The price of Glycols have started showing upward trend in the current year vis a vis last year. However, the prices of feedstock like molasses and alcohol have increased due to the Government decision to increase the use of Ethanol for blending in Petroleum. Keeping in mind the reduction in the prices of the Glycols in the year 2009-10, Company had diversified towards production of high value added Ethylene Oxide Derivatives (EODs), which has provided better margins as compared to Glycols.

Sales and other income for the year has been Rs.18599.200 Millions compared to Rs.14129.000 Millions last year showing an increase by 32% vis a vis last year. Profit before depreciation, exceptional item and tax for the year has been Rs.1053.800 Millions as compared to Rs.739.100 Millions last year showing an increase by 43%. The net profit after tax for the year has been Rs.256.200 Millions as compared to net Profit of Rs.200.000 Millions last year.

The borrowing cost has increased to Rs.863.100 Millions as compared to Rs.600.900 Millions last year, due to increase in the borrowings as well as increase in the overall interest rates by all the banks. The Company has taken various steps to keep the borrowing cost under control by availing PCFC, Buyers credit and converting Rupee Loans into FCNRB Loans.

The Company produced 76,364 MT of Glycols compared to 47,865 MT last year. Ethylene Oxide Derivatives (EODs) production has been 106,927 MT compared to 97,803 MT last year.

The Company has produced 37,280 KBL of Potable Alcohol and has produced 664 lacs PET Bottle at Gorakhpur for the Potable Alcohol plant at Gorakhpur.

MARKETING

The Company is the largest manufacturer of Bio-MEG in the world made out of agriculture feedstock i.e. Molasses and Ethanol. Bio-MEG has an application, apart from other products, in PET bottles, which is used for packaging of beverage products. Sale of Glycols has been 77,572 MT compared to 43,677 MT last year.

The sale of Ethylene Oxide Derivatives (EODs) has been 108,585 MT compared to 97,254 MT last year.

EXPORTS

The Company has achieved total export turnover of Rs.7046.200 Millions as compared to Rs.4106.800 Millions last year. The Company expects reasonable growth in the overall export sales in the current year. Company has been granted `One Star Export House’ status by Government of India, Office of the Jt. Director General of Foreign Trade.

NATURAL GUM

The Company achieved total sales of Rs.648.800 Millions of the Natural Gum products out of which the export turnover was Rs.632.200 Millions as compared to total sales of Rs.262.400 Millions last year out of which the export turnover was Rs.258.400 Millions. The Company has registered a growth of 147% in Natural Gum segment, due to high international quality standard. The Company is modifying its existing Guar Gum Plant to upgrade the quality of the product of first hydrating Guar going for Oil Field Industry.

The Company has enhanced the production capacity by 50% as against earlier capacity and is also further planning to increase capacity by end of August 2011 to cater to the growing international demand.

ETHYL ALCOHOL (POTABLE) AND EXTRA NATURAL ALOHOL

The Company registered total sales of Rs.3414.700 Millions compared to Rs.3870.700 Millions last year in the Ethyl Alcohol (Potable) and Extra Natural Alcohol division. Efforts are being made to increase the sales of Ethyl Alcohol (Potable). Company has the most modern and largest captive distillery in Asia and is among few Companies in the country having license of operations in and sale of Country Liquor and Indian Made Foreign Liquor (IMFL) in the states of Uttar Pradesh and Uttarakhand.

During the year, IMFL brands of the Company have been supplied to Defence Forces Canteens (CSD). The Segment contributes around 19% in the total revenues of the Company.

ENNATURE BIO-PHARMA DIVISION (100% EXPORT ORIENTED UNDERTAKING)

Company has a 100% Export Oriented Unit (100% EOU) by the name of Ennature Bio-pharma division. The Company has taken 47 acres land on lease from Uttarakhand government, where it is growing a wide variety of medicinal plants etc. It has also set up a Supercritical Fluid Extraction facility (SCFE) at Dehradun, which will be cGMP and HACCP compliant. The unit is Kosher certified and approved by Indian Food and Drug Authorities (FDA). SCFE at Dehradun has started production and is in process of stabilizing and developing various Phytopharmaceuticals and Nutraceuticals products. The unit has received accreditation from the Indian Spices Board and has been enrolled as members of Pharmexcil and Shellac Export Promotion Council. This unit will be used for extraction of Dietary Food supplements, Natural Colors, Health care fruits and vegetables, Herbal Extracts, Fruit flavors and fragrances and Spice flavors and extracts. Future thrust is to become supplier of more refined natural active pharmaceutical ingredients (API) and intermediates to pharmaceutical and natural health product industries. All these are very high value added products. Since this will be a 100% EOU, this diversification will provide tax benefit also. During the year, the Company registered total sale of Rs.153.800 Millions in the Ennature Bio Pharma Division.

INDUSTRIAL GASES

The Company has an Industrial Gases division producing Oxygen, Nitrogen and Argon with an overall capacity of 13,460 NM3/h. During the year under review, Company produced approximately 641 lacs NM3 of Oxygen and 218 lacs NM3 of Nitrogen. Both Oxygen and Nitrogen were successfully marketed and also used for own requirement. Industrial gases division also produced 13 lacs NM3 of Argon.

The Industrial Gases division has also produced food and industrial grade liquid Carbon Di-oxide (CO2) at Kashipur Plant having capacities of 160 MT/day each, to meet growing domestic market. Company has produced 46,102 MT of Carbon Di-oxide (CO2). During the year, Industrial Gases segment registered total sales of Rs.294.100 Millions compared to Rs.233.000Millions last year. Joint venture for private freight terminal (Pft). The Company is setting up a Private Freight Terminal (PFT) under a joint venture with Fourcee Infrastructure Equipments Private Limited as permitted vide Freight Marketing Circular No. 14 of 2010 dated 31.05.2010, and Freight Marketing Circular No. 6 of 2011 dated 21.06.2011 by the Indian Railways, for providing railways-based logistics services and other facilities at Kashipur, Uttarakhand, as provided under extant guidelines of the Indian Railways. The facility would be adjacent to the existing plant of Company at Kashipur.

The Parties have entered into a Memorandum of Understanding to co-operate and partner with each other for the purpose of setting-up, operating and managing the said Private Freight Terminal (PFT) in order to provide multi-modal logistics solutions to our Company and external customers and enhance its service delivery capacity. With the commissioning of this facility, logistics movement for both inbound and outbound cargo would become more dependable, reliable, economical, would also ensure on-time delivery of goods and enable better inventory management.

EXPANSION / MODERNISATION / DIVERSIFICATION PLANS

The Company is actively pursuing growth opportunities and looking at areas to reduce its cost of production.

The Company is evaluating plans to further expand its Ethoxylates capacity to improve its product mix and also considering the setting up of a Power Plant to reduce its dependence on external power. In addition, the Company is actively pursuing expansion opportunities for its business other than Chemicals. The Company is setting up 10 ton biomass/day capacity pilot plant to convert lignocellulosic agricultural waste biomass to ethanol by using the bench-scale process developed at DBT-ICT Centre for Energy Bio-Sciences, Mumbai. The pilot plant will use agricultural non-fodder lignocellulosic waste (i.e. Rice straw, Wheat straw and Bagasse) as feedstock to manufacture ethanol. The plant will aim at solving technical roadblocks in lignocellulosic ethanol technology in order to improve the overall situation with regard to alcohol availability. The plant is being set-up with the Department of Bio- Technology aid/loan.

FINANCE

Company has raised Rupee Term Loans of Rs.3,170 million. The Company has repaid total loans of Rs.2,010 million, out of which Company repaid Rupee Term Loan of Rs.1513 million and Foreign Currency Loans of US$ 7.61 million and JPY 276.25 million equivalents to Rs. 497 million.

The Company has been regular in meeting its obligations towards payment of principal/interest to Financial Institutions / Banks / Debenture holders / Fixed Deposit holders.

SUBSIDIARY COMPANIES

The Company is having controlling stake in Shakumbari Sugar and Allied Industries Limited (SSAIL), which operates a sugar manufacturing plant in the state of Uttar Pradesh with a crushing capacity of 5500 tones per day (TCD) along with a modern distillery of 40 KL per day (KLPD) producing high quality rectified spirit, ethanol and country liquor and an internal bagasse fired co-generation plant of 11.4 MW catering to the captive power needs of the sugar and distillery units.

The Company has completed first phase of expansion plan and the capacity of sugar manufacturing plant has been enhanced from 3200 TCD to 5500 TCD and cogeneration plant capacity has been enhanced from 3 MW to 10.4 MW of power generation.

The Company has also established a subsidiary in Singapore to augment its activities in South Eastern region and help the marketing of products from Chemical Plant and Supercritical Fluid Extraction facility to large buyers in US, Europe and South East Asia.

The Company has three, wholly owned subsidiary companies, i.e. Shakumbari Sugar and Allied Industries Limited (SSAIL), IGL Finance Limited and IGL CHEM International Pte. Limited. The Ministry of Corporate Affairs, Government of India, vide General Circular dated 8^th February 2011 and 21st February 2011 has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular for non-inclusion of Subsidiary Companies’ Annual Report with the Annual Report of the Holding Company. The Company has satisfied the conditions stipulated in the circular and hence have availed the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

The Company undertakes that annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders of the Company and subsidiary companies seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholders in the head office of the company and of the subsidiary companies concerned. The Company shall furnish a hard copy of details of accounts of subsidiaries to any shareholder on demand.

MANAGEMENT DISCUSSION AND ANALYSIS:

Products

Subject is one of the manufacturer of Glycols, Ethylene Oxide Derivatives, Ethyl Alcohol (Potable). Natural Gum and Derivatives and Industrial Gases. Our belief in providing the desired products with the help of the best technology is reflected in their state-of-the-art integrated manufacturing facilities.

The Company has organised its business into chemicals and other segments.

A. Chemical segments comprises:-

· Glycols (MEG, DEG, TEG and Heavy Glycols)

· Ethylene Oxide Derivatives (EODs)

B. Ethyl Alcohol (Potable) and Extra Natural Alcohol

C. Others includes High Sulphur Alcohol, Hydro Choloric Acid, Natural Gum, Industrial Gases, Nutraceuticals and Herbal Extraction etc.

GLYCOLS

Sales of Glycols (MEG, DEG, TEG and Heavy Glycols) has increased from 43,677 MT to 77,572 MT and in Sales Value from Rs. 2,323 million in FY 2009-10 to Rs.4,214 million in FY 2010-11. The capacity utilisation, though showing improvement over previous year could not be fully utilized due to the prices of feedstock like molasses and alcohol did not come down in line with international prices of crude oil. Hence, the performance was further adversely affected as domestic prices of their feedstock viz. molasses and alcohol was high on account of poor availability of Alcohol and Molasses. Consequently, Company was forced to regulate its Glycols production as it was not economically viable.

OPPORTUNITIES AND CHALLENGES

There has been substantial increase in polyester manufacturing capacities in India due to major expansion undertaken at Reliance, Indo Rama, JBF and Garden Mills. Consequently, polyester industry is expected to grow at 16% during the financial year 2010-11. Overall demand of MEG in India is 1,800,000 MTPA as compared to supply of 1,100,000 MTPA and the balance shortfall is being met by imports.

There was shortfall in cotton crop during last year resulting in its high price and contributed to the higher demand of polyester, which coupled with increase in demand of petrochemicals post recession recovery period resulting in higher ethylene prices.

This has helped in establishing price of MEG at around $ 1150 - 1200 per MT.

Subject in its long term strategy, is shifting from commodity to niche markets and speciality products and would divert EO molecule for Bio-MEG and EO Derivative/ Speciality products which will give us a much better returns. They are promoting their Glycols as Bio/ Green

MEG to potential customers interested in meeting their objective of using environment friendly chemicals made from natural renewable resources. They have converted this concept into a good business opportunity which will enable full capacity utilisation with better realisation. Moreover, the niche markets of BIO MEG in the packaged water, automobile, personal care and cosmetics are being explored.

They have also initiated promotion of Bio-Ethoxylates in the international market which is gaining acceptability and can be a good opportunity for better realisations in the niche market segments.

ETHYLENE OXIDE DERIVATIVES (EODS)

The EO Derivatives business has registered higher sales of 108,585 MT from 97,254 MT during previous year and in Sales Value Rs. 8,593 million as compared to Rs 6,754 million in 2009-10. This has been mainly due to increased availability of EODs as new capacities have been commissioned during the previous year. This segment accounted for 67% of company’s total net revenues of Chemical business and is highest contributor at 47% to the total revenue of the Company.

The Ethylene Oxide Derivatives produced by the company are used by diverse industries like Textile, Agrochemicals, Detergents, Pharmaceuticals and Personal Care, Oil Field and Automotive industry, paint and coating industry, etc.

The company aims to increase its business by developing new products and applications especially in areas of textile chemicals, oil field chemicals, paper chemicals, home care and personal care applications.

The thrust would be in line with the strategy to maximize EODs business in view of increasing the usage of EO for EO Derivatives for improved margins.

ETHYL ALCOHOL (POTABLE) AND EXTRA NATURAL ALCOHOL

In the Ethyl Alcohol (Potable) and Extra natural Alcohol segment, Company registered total sales of Rs.3,415 million compared to Rs.3,871 million last year and Rs.2685 million a year before. Efforts are being made to further increase the sales in the segment.

NATURAL GUM

Company produced 7,255 MT of Natural Gum and achieved total sales of Rs.649 million out of which the export turnover was Rs.632 million compared to total sales of Rs.262 million last year out of which the export turnover was Rs.258 million.

INDUSTRIAL GASES

Company produced 641 lacs NM3 of Oxygen and 218 lacs NM3 of Nitrogen during the year. Both Oxygen and Nitrogen successfully marketed and also used for own requirement of MEG Plant. Industrial gases division also produced 13 lacs NM3 of Argon and 46,102 MT of Carbon Di-oxide, which were marketed at remunerative prices.

Under the Industrial Gases division, Company registered total sales of Rs.161million compared to Rs.147 million last year and Rs.123 million a year before.

EXPORTS

Company has identified exports as a key future growth driver. It has already established itself as a major domestic speciality ethoxylates company and with the increased capacities, the scope for exports would be explored for higher growth.

Exports has achieved a growth of more than 72% in turnover from Rs.4,107 million in 2009-10 to Rs.7,046 million in 2010-11. The products for export are Ethylene Oxide derivatives, which with increased capacities would result in higher export values. The future thrust would also be in the area of marketing Bio-MEG and Bio-Ethoxylates to niche markets for achieving better contribution.

They have increased their Exports at Rs.7,046 million despite slow down in the international markets. They expect to increase our exports in the coming year by at least 30,000 MTPA by focusing on Bio-MEG and EODs.

The major export markets are the South East Asia, Middle East and China as we have logistic advantage in these

region. export to more than 40 countries worldwide and the thrust for exports would be to other regions in Europe,

USA, Japan and Latin America.

FINANCIAL REVIEW

Performance of the Company has shown improvement consequent to the improvement in the overall economic situation worldwide. The price of Glycols have started showing upward trend in the current year vis a vis last year. However, the prices of feedstock like molasses and alcohol have increased due to the Government decision to increase the use of Ethanol for blending in Petroleum. Keeping in mind the reduction in the prices of the Glycols in the year 2009- 10, Company has diversified towards production of high value added Ethylene Oxide Derivatives (EODs), which could provide better margins as compared to Glycols. Sales and other income for the year has been Rs.18599.200 Millions compared to Rs.14129.000 Millions last year and Rs.11412.500 Millions a year before showing an increase by 32% vis a vis last year. Profit before depreciation, exceptional item and tax for the year has been Rs.1053.800 Millions as compared to profit of Rs.739.100 Millions last year and loss of Rs.330.800 Millions a year before showing an increase by 43% .The net profit after tax for the year has been Rs. 256.200 Millions as compared to net Profit of Rs.200.000 Millions last year.

The borrowing cost has increased to Rs.863.100 Millions as compared to Rs. 600.900 Millions last year, due to increase in the borrowings as well as increase in the overall interest rates by all the banks. The Company has taken various steps to keep the borrowing cost under control by availing PCFC, Buyers credit and converting Rupee Loans into FCNRB Loans.

Company has raised Rupee Term Loans of Rs.3170 million. The Company has repaid total loans of Rs. 2,010 million, out of which Company repaid Rupee Term Loan of Rs.1513 million and Foreign Currency Loans of US$ 7.61 million and JPY 276.25 million equivalents to Rs. 497 million.

During the year under review, the Gross Fixed Assets has increased to Rs.15255.000 Millions from Rs.12204.200 Millions in 2009-10.

Company has been regular in meeting its obligations towards payment of principal/interest to Financial Institutions/ Banks/ Debenture holders/ Fixed Deposit holders.”

CONTINGENT LIABILITIES

i] In respect of:-

Particulars	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions

Central Excise/ State Excise	563.308	74.348
Customs	35.012	23.335
Services Tax and Others	29.318	16.485
Sales Tax	2.570	--

ii] Claims against the Company not acknowledge as debts amounting to Rs.30.324 millions.

iii] Bills discounted with Banks Rs.336.509 millions.

iv] Corporate Guarantee to banks for loans availed by Shakumbari Sugar and Allied Industries Limited (a subsidiary company) amounting to Rs.2263.313 millions.

FIXED ASSETS:

v Land

v Leasehold Land

v Buildings

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Specialised Computer Software

WEBSITE DETAILS

MILESTONES

Set up in 1983, India Glycols has come a long way in establishing itself as a leading chemicals manufacturer. Here are some of the key milestones the company has achieved along its journey:

1983
Incorporated on 19th November 1983, as UP Glycols Limited.

1986
Renamed as India Glycols Limited on 28th August 1986.

1989
Commercial production commenced at MEG plant from 25th April 1989: capacity, 20,000MTPA.

1994
Commissioning of 13,000MTPA EO purification plant.
Commissioning of 20,000MTPA ethoxylate plant.

1995
De-bottlenecking of MEG facility (20,000 to 25,000 MTPA).

1997
Commissioning of 10,000MTPA formulation plant.

1998
De-bottlenecking of MEG facility (25,000 to 30,000 MTPA).
Commissioning of 6,000MTPA sulphation plant.

1999
Commissioning of 85,000 BL PD new continuous process distillery.
De-bottlenecking of MEG facility (30,000 to 33,000 MTPA).
Increase in power generation capacity (6 to 18 MW).

2001
Commissioning of glycol ether plant.
Commissioning of guar gum facility, 12,000MTPA capacity.

2002
Commissioning of bottling plant.
Expansion of MEG plant to 60,000MTPA.

2003
Addition of GE acetate facility.
Commissioning of ENA plant.

2005
Expansion of MEG production to 1 lakh MTPA.
Commissioning of ASU - III.
Commissioning of RAB unit.

2006
Commissioning of Gorakhpur unit.

2007
Acquisition of Shakumbhari Sugar.

2008
Commissioning of CO2 plant.
Expansion of MEG plant to 200,000MTPA.

2009
Commissioning of Ennature Biopharma, Dehradun.
Commissioning of DEGEE acetate plant.
Expansion of formulation plant - CABS.
Expansion of ethoxylate plant (stirred reactor).

2010
“The Biomass based Cogeneration Project at Gorakhpur registered under CDM project by UNFCCC.”

PROFILE:

Subject is a company that manufactures green technology based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals.

The company was established as a single mono-ethylene glycol plant in 1983. Since then, IGL has brought together cutting-edge technology, innovation and an unflagging commitment to quality, to manufacture a wide range of products that have found global demand.

Subject state-of-the-art, integrated facilities manufacture chemicals including glycols, ethoxylates, glycol ethers and acetates, and various performance chemicals. Its product range spans the chemicals, spirits, herbal and other phytochemical extracts and guar gum, industrial gases and realty sectors, and finds application across an increasing number of industries.

These products are manufactured in compliance with stringent global standards of plant operations, quality and safety. The company’s facilities have been approved and certified by international agencies including Det Norske Veritas (DNV). The operations at all plants are closely monitored through distributed control systems (DCS), which facilitate a high degree of control over the quality of products.

IGL BUSINESSES

Subject flagship chemicals division started out with a path-breaking green approach to manufacturing ethylene oxide and derivatives. Using the molasses-ethyl alcohol-ethylene 'green route', the company is the only one of its kind in the world. With the emphasis now increasingly shifting to green manufacturing, the chemical division is well poised to meet the industry’s need for environmentally responsible products and production techniques.

Keeping in mind the critical dependence on agricultural feedstock, the company has taken up several initiatives including backward integration into sugar manufacturing to ensure seamless raw material availability. Other complementary initiatives include co-opting the cane growing community to ensure cane availability while providing adequate returns to the farmer.

Apart from chemicals, Subject has a significant presence in the natural active pharmaceuticals and nutraceuticals space with Ennature Biopharma; a well-established natural gum division manufacturing guar gum and a variety of derivatives; a spirits division that manufactures country and Indian-made foreign liquor adhering to the highest quality standards; and Shakumbari Sugar – a well-established player in the Indian sugar industry.

EXPORTS

Subject has traditionally looked to leverage the export potential of its products. The company has therefore initiated the process of aligning to emerging global trends and has established facilities and operations that are in compliance with global good manufacturing practices.

BUSINESS DESCRIPTION:

Subject is an India-based company engaged in the manufacture of glycols, ethylene oxide derivatives, ethyl alcohol (potable), natural gum and derivatives and industrial gases. The Company operates through three business segments: chemicals, liquor and others. Chemicals segment is engsged in the manufacturing and selling of ethylene glycol, di-ethylene glycol, heavy glycol and ethylene oxide (EO) derivatives. Liquor segment comprises manufacture and sale of ethyl alcohol (Potable). Others segment includes guar gum, software development and Ennature Bio-pharma. Its subsidiaries include Shakumbari Sugar Allied Industries Limited (SSAIL), IGL Chem International PTE. Limited and IGL Finance Limited. For the fiscal year ended 31 March 2010, India Glycols Limited's revenues increased 17% to RS12.38B. Net income totaled RS60.1M, vs. a loss of RS1.09B. Revenues reflect an increase in income from chemicals, Ethyl Alcohol and Other business segments. Net income reflects a decrease in rent expenses, decrease in rates and taxes expenses, decrease in traveling and conveyance expenses and decrease in directors fees.

BOARD OF DIRECTORS

Mr. U. S. Bhartia

Chairman of the Board, Managing Director

Mr. U.S. Bhartia is Chairman of the Board, Managing Director of Company. His Directorships inlcudes Kashipur Holdings Limited, IGL Finance Limited, Shakumbari Sugar and Allied Ind. Limited, Polylink Polymers Limited,and Hindustan Wires Limited. Mr. U.S. Bhartia is an Industrialist and has overall 32 years of experience in managing scale Industrial Companies. He is associated with India Glycols Limited for over 14 years as Managing Director and involved in the day to day managerial activities of the Company. Mr. U.S. Bhartia is one of the promoters of the Company.

Mr. Jitender Balakrishnan