_,, SURYA ROSHNI LIMITED . An IS/ISO__ 9001, An IS/ISO 1'001 & IS 18001 Company CIN ·L31501 HR1973PLC007543 2nd Floor, Padma Tower-1, RaJendra Place, New -110 008 Ph.: +91-11-25810093-96, 47108000 Fax: +91-11-25789560 E-mail : [email protected] Website : www.surya.co.in

SRL/se/19-20/23 August 5, 2019

The Secretary The Manager (Listing Department) The Stock Exchange, Mumbai The National stock Exchange of Ltd New Trading Ring, I 4th Floor, Exchange Plaza, 5th-floor Rotunda Building, P.J.Towers, Plot No. C/1, G Block Dalal Street, Fort, Bandra Kurla Complex, Bandra (E) MUMBAI - 400 001 Mumbai - 400 051 Scrip Code: 500336 NSE Symbol: SURY AROSNI

SUBJECT: ANNUAL REPORT 2018-19 ALONGWITH 46th ANNUAL GENERAL MEETING NOTICE

Dear Sir,

In compliance to Regulation 34( 1 )(a) read with Regulation 30 read with Para A (12) of PartA of Schedule III ofSEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015, please find attached the soft copy of the Annual Report 2018-2019 along with the 46th Annual General Meeting (AGM) Notice to be held on 4th September, 2019 at Registered office of the company.

Copy of the same is also being uploaded on the website of the Company at, http://www.surya.co.in

Kindly take the same in your records.

Thanking you,

Enclosed: as above. ACTIVE PRESENT. SURYA ROSHNI LIMITED ANNUAL REPORT 2018-19 Corporate Overview Statutory Reports

Active Present. Future Positive 02 Management Discussion and Analysis 33

Surya Roshni Limited: 04 Board’s Report 49

A Future-Ready Organisation Corporate Governance Report 84 Our Business Model 08 Diversified Product Offering 10 Financial Section Active Across India and the World 18 Standalone 107 Actively Evolving Over the Years 19 Consolidated 150 Key Performance Indicators 20

Chairman’s Statement 22

Managing Director’s Message 24

Board of Directors 27

Key Management Personnel 29

Our Community Initiatives 30

Corporate Information 32

Investor information

Market capitalisation as on March 31, 2019 : ` 1,372 crore For online version of this annual report, visit: BSE Code : 500336 www.surya.co.in/annual-report/ NSE Symbol : SURYAROSNI Or simply scan: Dividend for 2018-19 : ` 2 per Equity Share

AGM Date : 4th September, 2019

AGM Venue : 5HJG2IͤFH Prakash Nagar, Sankhol, Bahadurgarh-124507 ()

Forward looking statement: 7KLVUHSRUWFRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVDERXWWKHEXVLQHVVͤQDQFLDOSHUIRUPDQFH skills and prospects of the Company. Statements about the plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for future are forward-looking statements. Forward-looking statements should be viewed in the context of many risk issues and events that could cause the actual performance to be different from that contemplated in the Directors’ Report and Management Discussions and Analysis Report, including but not limited to, the impact of changes in oil, steel prices worldwide, technological obsolescence and domestic, economic and political conditions. We cannot assure that outcome of this forward-looking statements will be realised. The Company disclaims any duty to update the information given in the aforesaid reports. Surya Roshni is actively leveraging its current competencies and expanding the bandwidth of its capabilities for a brighter and positive future opportunities.

Key performance indicators of 2018-19

crore, crore, Revenue 3URͤW$IWHU7D[ 3$7 Surya Roshni has actively captured the potential of the upcoming opportunities. It has developed an appetite to absorb the industrial potential by actively investing in fresh capacities, product innovation, marketing & distribution activities, brand promotions, geographical expansions and developing & retaining world class talent pool. It has also successfully pursued the transition from conventional products and introduced new product lines that actively captures the trends of today and needs of the future.

The Government’s strong vision of building a new, strong and self-reliant India shall drive several industrial opportunities. This augurs well for a future positive demand for Surya Roshni’s products. Consider the following developments:

Oil & Gas Strong capex by several hydrocarbon majors for developing cross country pipeline for Oil & Gas transportation.

City Gas Distribution Robust investments in developing the downstream City Gas Distribution.

Water Transportation Ambitious initiatives like ‘Har Ghar Nal ka Jal’ as well as River Interlinking Projects, Sewerage Water Treatment, Industrial Water Lines and Boring Water Transportation in Agricultural Fields will witness sustained investments in water transportation pipelines.

Infrastructure Government’s push for ‘Housing for All’, ‘Make In India’, Smart Cities, coupled with Railways and Airport modernisation initiatives.

LED Lighting *RYHUQPHQW̵VSXVKWRWUDQVIRUPFRQYHQWLRQDOOLJKWEXOEVWRHQHUJ\HIͤFLHQWOLJKWLQJWKURXJK its ambitious programs. It aims to distribute LED’s to the rural India and has ambitious plans of UHSODFLQJVWUHHWOLJKWVZLWKHQHUJ\HIͤFLHQW/('ODPSV

Consumer Durables Rising disposable income with easy access to credit across both urban and rural India.

7KHRSHUDWLQJDQGͤQDQFLDOLQIRUPDWLRQSURYLGHGLQWKLVDQQXDO report reflects Surya Roshni’s active participation and commitment to create a strong foundation for future growth.

2 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE FINANCIAL SECTION REPORTS STATUTORY

Surya Roshni installed high power street lights and flood lights luminaires for the entire ‘Kumbh Mela’ 2018

Active Present. Future Positive. 3 SIX things you should know about the Company

1 Core businesses with leading industry position

Lighting & consumer durables segment: Engaged in manufacturing DQGEXVLQHVVRIHQHUJ\HIͤFLHQW/('OLJKWVFRQYHQWLRQDOOLJKWLQJ LED luminaries, fans, home appliances and PVC products.

Steel pipes & strips segment: ERW Steel Pipes (Galvanized (GI), GI Pipes manufacturer Black, Hollow Section), API Pipes, Spiral, GP Pipes and CR sheets. and exporter in India India’s largest exporter and producer of GI pipes and second largest company in lighting products.

Lighting company Backward integrated in India

2 Evolution Amidst the journey from a subtle beginning to spearheading the technological revolution in the 21st century, Surya Roshni has exceedingly come a long way from being just another steel tube making unit back in 1973. Since then it has been consistently developing range of steel tubes and pipes needed to cater to WKHGHPDQGVRIVRPHRIWKHLPSRUWDQWVHFWRUVOLNHDJULFXOWXUHLQIUDVWUXFWXUHͤUH ͤJKWLQJRLO JDVDQGFRQVWUXFWLRQDPRQJRWKHUV

In 1984, Surya Roshni ventured into lighting operations and seamlessly transitioned Exports presence from being one of the leaders of conventional lamp manufacturer to one of the across countries leading LED brand in the lighting industry.

In 2014-15, Surya Roshni strategically forayed into related products like fans and home appliances with range of quality and smart offerings at affordable price crore points. Group turnover

Today, the Surya Group has emerged into a colossal of ` 5,975 crore (US$ 850 million) Indian manufacturing company, exporting products to over 50 countries globally. It has gained strong market reputation with best-in-class quality offerings across the businesses.

4 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

3 Brands Both the brands – ‘Prakash Surya’ and ‘Surya’ – are ranked as one of the most years+ respected and trusted brands for steel pipes and lighting products in India and Brand equity globally.

Over the years, the Company has manifested a strong brand image and developed a larger mind share amongst the customers. It is also recognised as one of years+ the most trusted and preferred brands with various Government departments, Associations with over 50%

institutions and international buyers. FINANCIAL SECTION REPORTS STATUTORY of lighting distributors

4 Infrastructure

The Company has state-of-the-art manufacturing facilities across the states of Haryana, , Andhra Pradesh, and . Besides, it also has an advanced lighting research and development centre (R&D), Surya Manufacturing facilities Technology & Innovation Centre (STIC) at Noida (NCR).

Steel Pipes and Strips Segment Lighting Segment

Anjar, Gujarat Hindupur, Andhra Pradesh Kashipur, Uttarakhand

Bahadurgarh, NCR-Delhi Gwalior, Madhya Pradesh Gwalior, Madhya Pradesh

Surya Roshni Limited: A Future-ready Organisation 5 5 PAN India presence with extensive distribution network

Strong distribution network of over 2,500 distributors and 2,50,000 retailers countrywide for lighting and consumer durables and network of 2,500 distributors for Steel Pipes and Strips segment. Revenues from non- metro for Lighting and Consumer Durables

Revenues from B2C in the Steel Pipes and Strips Segment

Surya Roshni outlet at the Light India Exhibition at New Delhi

$SSURYDOVFHUWLͤFDWLRQVDQG 6 recognitions

Surya Roshni’s steel pipe products for oil & gas sector are approved by the reputed API (American Petroleum Institute). Besides that, the Company is DOVRFHUWLͤHGZLWK,62,62 2+6$6FHUWLͤFDWLRQVZKLOHWKH products that are accredited with an international performance of safety standards. The Company is committed to deliver eco-friendly and quality products.

The Company has recently been awarded with ‘Brand Excellence Award in Lighting Category’ in 1RUWK,QGLD%HVW%UDQG$ZDUGV,WZDVDOVR awarded with ‘Champions of Rural Market’ award Mr. Raju Bista, the Managing Director of Surya Roshni receiving the ‘Champions of Rural Market’ award by the prestigious newspaper The by the prestigious newspaper The Economic Economic Times Times.

6 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

Vision Committed towards a better tomorrow To be the largest global enterprise which delivers optimised solutions to its consumers and value to its stakeholders. To provide the FINANCIAL SECTION REPORTS STATUTORY best steel pipe, lighting & electrical products and technology for markets across the world.

Mission Energising lives and beyond To be a global leader by consistently exceeding the consumer demands, upgrading technology, making quality products, building long-term relationships with all our customers, partners, associates and employees.

Core Values

Surya Parivar Principle-centric, close-knit family, trust, mutual respect and team spirit. Integrity Moral principles, undivided spirit reflects in SHUVRQDOOLYHVͤQDQFLDOWUDQVDFWLRQVDQG business deals. Social Responsibility Eco-friendly products, optimised resources to conserve the environment. Customer Satisfaction Customers - Guiding Stars for future endeavours and improvements.

Vision, Mission, Core Values 7 At Surya Roshni, our business model is centred around the key value-creation capitals. These include: INPUTS VALUE-ENABLERS

FINANCIAL CAPITAL STRONG CORPORATE Comprises funding inputs required to meet the daily operational requirements to keep our business going. VALUE-CREATION STRATEGIES Equity: ` 1,151.86 crore  2IIHULQJGLYHUVLͤHGSURGXFWSRUWIROLR Debt: ` 1,189.89 crore across the two distinct businesses. 7KHVHSURGXFWVͤQGLWVDSSOLFDWLRQV MANUFACTURING CAPITAL across the areas having strong future Comprises investments made towards building capacities across growth potential. the manufacturing facilities. Lighting & Consumer Durables Steel pipes and strips Capacities (MT p.a) Range of LED lightings for ERW Pipes (including GI of 2,50,000 MT) 9,00,000 consumers (trade) Spiral (including offline capacities of 1,40,000 MT) 2,00,000 CR Sheets 115,000 Range of lighting series for Luminaire 3 LPE Coated Pipes Business Group (LBG) External: 1,850,000 sq mtr. Fans Internal: 1,100,000 sq. mtr. Range of Home Appliances Lighting Capacities (Million Pieces p.a) PVC Pipes LED Bulbs 90 LED Streetlights 3.60 Steel Pipes & Strips LED Tubes and Fittings 10 ERW Steel Pipes GLS 200 (Galvanized (GI), Black, Hollow Section)

TECHNOLOGY CAPITAL API and Spiral Pipes Comprises investments made towards equipping the facilities with CR Sheets / Strips modern machineries, technological upgrades as well innovation Strengthening dealer and distribution and R&D activities. network

Investments made in technological upgrades/R&D: ` 3.17 crore Promoting brand capital for a stronger VISION AND VALUES VISION AND VALUES customer recall HUMAN CAPITAL Concentrating on adding new product Comprises investments made for the people on the board by way lines and fresh capacities to address of training and development; also includes investments on new the upcoming markets opportunities recruits during the year. No of people on board: 3,539 Developing strong foothold in the organised segment

RELATIONSHIP CAPITAL Leveraging shift from convention Comprises investments made towards strengthening relationship products to smart lighting with the distributors and dealers/retailers.  3UDFWLFLQJVWURQJͤVFDOSUXGHQFH

NATURAL AND SOCIAL CAPITAL  'ULYLQJSURͤWDELOLW\WKURXJKIRFXV Comprises investments towards conserving natural resources on value-added products, plant as well as promoting community well-being in the areas of HIͤFLHQFLHVFRQWURORQRYHUKHDGV health, skill development and education (through Surya rejections and reprocessing Foundation). Spent on CSR: ` 2.57 crore

8 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

OUTPUT GOVERNANCE TURNOVER

7Ps OF MANAGEMENT PRINCIPLES FOR Volumes in 2018-19 A PROFITABLE GROWTH Steel Pipes & Strips Turnover Lakh MT per annum ERW Pipes (including GI) 5.84 Professionalism API & Spiral Pipes 0.68

CR Strips 1.00 FINANCIAL SECTION REPORTS STATUTORY Others 0.60 Total 8.12

Product Development Turnover of Major Lighting & Consumer Durable Million pieces Products per annum

EFFICIENT RISK MANAGEMENT LED Bulbs 58.09 LED Tubes and Fittings 8.21 LED Street Lights 2.01 FTL 31.22 Productivity and Perfection GLS 150.54 Fans & Appliances 2.41

Promotions VALUES CREATED

 'RXEOHGUHYHQXHVDQGSURͤWDELOLW\RYHUWKHSDVWIHZ\HDUV ZLWKWKHORZHULQJOHYHOVRIGHEWHTXLW\UDWLR.H\ͤQDQFLDO SHUIRUPDQFHLQGLFDWRUVUHIOHFWWKHͤQDQFLDOUREXVWQHVV

Performance Evaluation  'LYHUVLͤHGSURGXFWSRUWIROLRZLWKVWURQJPDUNHWOHDGHUVKLS in the organised segment

Strong bonding with distributors and dealers/retailers leading to large market share

Pan India reach, with strong rural presence

Payback Strong brand - well-accepted across India and globally

 6DWLVͤHGDQGPRWLYDWHGWHDPZLWKODUJHSURSRUWLRQRIWKH people employed for over 20 years

Reduced energy usage through continuous energy conservation initiatives

3URͤWDEOH*URZWK Reduced carbon emissions through installation of solar energy

Positively impacting the community and uplifting their quality of life

Our Business Model 9 10 ANNUAL REPORT 2018-19 Lighting & Consumer Durables OVERVIEW CORPORATE

LED lightings for consumers (trade)

LED lamps

LED downlighters

LED luminaries

Conventional lamps – GLS, FTL, CFL and HID

Value-added offerings like colour-changers, smart lighting auto-dimming and app-based

lights FINANCIAL SECTION REPORTS STATUTORY

Lighting series for Luminaire Business Group (LBG) Government programmes

Indoor commercial series Street Lighting National Programme Industrial series (SLNP): Replacing street lights with LED lamps Roadway lighting series Deen Dayal Upadhyaya Gram Jyoti Future optimism Flood lighting series Yojana (DDUGJY): To improve Landscape lighting series electrical supply in rural India Bijli Har Ghar Yojana (Saubhagya): Solar lighting series LED market share in the To electrify 40 million families in Accessories total lighting industry rural and urban areas by 2020 HID lamps Unnat Jyoti (UJALA): To provide Source: ELCOMA affordable LED for all Light sources

Fans Ceiling fans (includes value-added products like anti-dust and HQHUJ\HIͤFLHQW%/'&IDQV Table, pedestal and wall fans (TPW) Domestic & Industrial exhaust fans

'LYHUVLͤHG3URGXFW3RUWIROLR/LJKWLQJ &RQVXPHU'XUDEOHV)DQV 11 Home Appliances

Food preparation & cooking Juicer, mixer & grinder Max chop chopper Cooktop Induction cooktop Sandwich maker/toaster Pop-up toaster Garment care Dry iron Steam iron

Heating appliances Storage water heater Instant water heater Immersion water heater

Climate control Air cooler  2LOͤOOHGUDGLDWRU Heat convector Halogen heater Quartz heater

PVC Pipes Applications: Water management Housing sector Agriculture & irrigation system Domestic and industrial drainage system – cold / hot water plumbing Industrial process lines Swimming pool Salt water lines

12 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

The ‘Surya’ brand has grown from strength to strength. Thanks to the Company’s best quality, strong brand promotions, customer relationship, consistent efforts by employees and ever evolving relationship with the RTFs RTFs. The Company’s active involvement across each layer of its distribution network further leads to building direct relationship with the retailers.

Some of the key drivers of this strong relationship with the distribution channel include: Dealers & Distributors Transparent and attractive polices & schemes FINANCIAL SECTION REPORTS STATUTORY Decentralised branch/depot network system leading to seamless logistical PRYHPHQWVSURPSWGHOLYHULHVHIͤFLHQWDIWHUVDOHVVHUYLFHVDQGFXVWRPHU feedback system Retail outlets Attractive incentive schemes, dealer engagement activities and holding out-of-India dealer conferences – leading to loyalty and strong engagement

Today, Surya Roshni has built one of the most extensive Pan-India FMEG distribution network with strong presence in the rural area.

Mr. Raju Bista addressing the dealers at the dealers meet in New Delhi

Dealer conference in Australia

'LYHUVLͤHG3URGXFW3RUWIROLR+RPH$SSOLDQFHV 39&3LSHV'HDOHUDQG'LVWULEXWLRQ1HWZRUN 13 Steel Pipes and Strips

ERW Steel Pipes API & Spiral Pipes (Galvanised (GI), Black, Hollow Section) Applications: Applications: Oil and Gas pipelines Oil well casing and Plumbing, irrigation and agriculture Fire-fighting application tubing City gas distribution Pipelines Water transportation Casing and tubing Industrial applications for potable water, sewerage, industrial Power plants (ash and water handling system) Scaffolding and water lines and plant piping Piping pile structural purposes Urban development like airport terminals, metro foundation for high-rise buildings stations and railway stations Construction – buildings and stadiums Electric pole and telecom towers Green houses Building material Engineering and architectural structures

14 ANNUAL REPORT 2018-19 Recently Commissioned 3LPE Coating Manufacturing Unit CORPORATE OVERVIEW CORPORATE Installed 3LPE Coating manufacturing unit in Anjar, Gujarat in 2018

Established track record, obtained accreditations, FHUWLͤFDWLRQVRI,62 

Specialised API Pipe with 3LPE Coating, used in transportation of Oil and Gas, City Gas Distribution and Pipelines for Potable water, Industrial water Lines and Plant Piping

High growth area – special thrust from Government on building modern infrastructure with low cost

transportation FINANCIAL SECTION REPORTS STATUTORY

Higher capacity utilisation of the Spiral/API Pipe manufacturing facilities

Forward integration

GP Pipes CR Sheets Applications: Applications: Infrastructure in coastal Auto components Motor stamping areas Furniture and fittings Domestic appliances Drums and barrels Cycle rims Engineering applications

'LYHUVLͤHG3URGXFW3RUWIROLR6WHHO3LSHV 6WULSV 15 Future optimism Sectors driving the demand Oil & Gas City gas distribution Agriculture Water transportation River inter-linking )LUHͤJKWLQJ Infrastructure and construction Airport Railways

)LUHͤJKWLQJLQIUDVWUXFWXUH

Airport terminal infrastructure

Oil pipeline infrastructure Tube railway infrastructure

16 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

The Company has also been consistently spending on its brand visibility by means of advertisements, hoardings, print media, participation in international trade fairs and jersey sponsorship of Team Rajasthan Royals in IPL 2019. FINANCIAL SECTION REPORTS STATUTORY

Principal Sponsor Rajasthan Royals, IPL 2019 Surya Steel Tubes & Pipes Advertisement in local print media

TV Advertisement, ‘Golmal Again’ Hindi TV Advertisement for Prakash Surya Steel Pipes

TV Advertisement for Surya Water Heater The International Tube and Pipe Trade Fair, Germany, April 2018

'LYHUVLͤHG3URGXFW3RUWIROLR6WHHO3LSHV 6WULSV%UDQG3URPRWLRQV 17 Global presencepresence

IndiaIndia MiddleMiddle EastEast AustAustraliaralia NewNew ZZealandealand EurEuropeope CanadaCanada MexicoMexico GGhanahana NigeriaNigeria

BranchBranch NetworkNetwork

NorthNorth Zone

DDehradunehradun DelhiDelhi GhaziabadGhaziabad JJaipuraipur LucknowLucknow AmbalaAmbala Corporate Office,Office, VaVaranasiranasi ZirakpurZirakpur New DelhiDelhi

R&D Centre STIC,STIC, NoidaNoida East ZoneZone

SteelSteel PipPipee PlantsPlants Bhubaneshwar GGuwahatiuwahati – Bahadurgarh ((Haryana)Haryana) Kolkata Patna Ranchi SSiliguriiliguri – Malanpur, Gwalior ((M.P.)M.P.) – Hindupur ((A.P.)A.P.) WestWest andand CentralCentral ZoneZone – Anjar, Kutchh ((Gujarat)Gujarat) AAhmedabadhmedabad Indore Mumbai JJabalpurabalpur NagpurNagpur Pune RaipurRaipur CR Sheets plant, – Bahadurgarh (Haryana) South ZoneZone

Lighting Plants Disclaimer: This map is a generalized illustration only for the ease of the reader to understand the locations, Bengaluru Chennai Coimbatore and is not intended to be used for reference purposes. The representation of political boundaries and the names of geographical features / states do not necessarily reflect the actual position. The Company or any Hubli Kochi Madurai Vizag – Kashipur (Uttarakhand) RILWV'LUHFWRUV2IͤFHUVRU(PSOR\HHVFDQQRWEHKHOGUHVSRQVLEOHIRUDQ\PLVXVHRUPLVLQWHUSUHWDWLRQRI any information or design thereof. The Company does not warrant or represent any kind in connection to its Secunderabad Vijayawada – Malanpur, Gwalior (M.P.) accuracy or completeness.

18 ANNUAL REPORT 2018-19 2019 Commenced

commercial production OVERVIEW CORPORATE at the 3LPE Coated Pipe manufacturing unit at Anjar (Gujarat) 2018 Completed merger of associate company Surya Global Steel Tubes Limited (SGSTL) with Surya Roshni Limited 2017 2015 Commissioned New Steel Pipe Plant at Hindupur (A.P.) in Launched Surya Home Appliances March 2017; Expanded further to 1,50,000 MT in December 2017 FINANCIAL SECTION REPORTS STATUTORY

2014 Launched Surya Fans 2012 Commenced production of LED Commenced operations at the STIC (R&D) products at the Kashipur plant FHQWUHDW1RLGDIRUHQHUJ\HIͤFLHQW/('OLJKWV 2010 Set up of Steel pipe Plant at Gwalior (MP) 2006 A new world-class pipe unit started Installed CFL unit at Gwalior (MP) production at Bhuj (e-SGSTL Unit) PVC plant became operational 1998 Asia’s largest ribbon glass plant started with annual capacity of 400 1994 million GLS and 25 million FTL shells Started the new modern glass plant 1992 Started commercial operations of the second lighting plant at Gwalior (MP), 1991 SURGXFWLRQRIͤODPHQWIRU*/6DQG)7/ commenced Commenced production of CR strips 1989 Commenced production of HPSVL DQGHQHUJ\HIͤFLHQWPP)7/

1973 1980 1984 Set up steel pipes Started the 6WDUWHGWKHͤUVWOLJKWLQJ plant at Bahadurgarh Galvanizing plant plant at Kashipur

Active Presence & Evolution Over The Years 19 Revenues From Operations EBITDA 3%'7̰&DVK3URͤW (` crore) (` crore) (` crore)

5,975.04 376.07 260.99 348.59 243.43 5,011.76 313.90

201.18 4,181.03 244.23

147.80 3,196.50

2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19

PAT EPS Net Worth (` crore) (`) (` crore)

22.20 120.81 1,151.86

108.04 19.86 1,047.32 950.92

86.28 15.86 14.40 691.46 63.10

2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19

Notes: )LJXUHVRI)<DUHFRQVROLGDWHGRQHDQGWKHͤJXUHVRI)<)<DQG)<DUHVWDQGDORQHVLQFHWKHVROHVXEVLGLDU\ZDVLQFRUSRUDWHGRQ 21st January, 2019.

20 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE Lighting and Interest ROE Consumer Durables: Coverage Ratio (%) Product wise revenue

3.31 10.81 10.99 3.27 9.61 9.63

2.78

2.53 FINANCIAL SECTION REPORTS STATUTORY

LED Lighting 60% Conventional Lighting 24% 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 Consumer Durables/PVC 16%

Debt Equity Dividend Steel Pipes and Strips: (`) Product wise revenue

1.29 2.00 2.00

1.13 1.05 1.03 1.50

1.00

GI Pipes 32% Section Pipes 17% CR Sheets 12% Round Pipes 23% API & Spiral Pipes 11% 2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 Others 5%

2. As per requirement of IND AS Revenue for the period(s) up to 30th June, 2017 were reported inclusive of Excise Duty and the revenue from the 1st July, 2017 onwards are reported net of GST.

Key Performance Indicators 21 We have positioned ourselves at the forefront of the industry developments to enable futuristic growth and sustained value- creation originating from the favourable industry dynamics.

Dear Shareholders,

2018-19 has been a benchmark consumer demand and rapidly has set itself an ambitious aim of year for Surya Roshni. We achieved changing industry dynamics. becoming a $5 trillion economy highest volumes in Steel Pipes RYHUWKHQH[WͤYH\HDUVZKLFKKDV business and further continued to Strong macro fundamentals necessitated the country to adopt strengthen our growth in the Lighting infrastructural upgradation and India is still a beacon of growth and business. Over the past few years modernisation of public utilities the most exciting economy in the we have taken strategic decisions with strong focus on smart city world as of today. like foraying into fans and home development, city gas distribution appliances, strengthening capabilities Several structural changes in the and water transportation. This in turn in the LED segment to capture the SUHYLRXVͤVFDOKDYHSURPRWHG translates into a strong optimism for industry transformation and building organised sector growth the Company to grow ahead. the 3LPE coating facility at Anjar. Our and business opportunities, continuous efforts in bringing the giving impetus to the overall The industry optimism strategies into action have been well economic activity. Low inflation, There are several developments on target and have started yielding accommodative monetary policy happening within the industry. There results now. Today, we are actively and Government income support to has been a thrust on building gas pursuing our future prospects to meet farmers will further support domestic pipelines and new import facilities the aspirations of an ever-evolving economic activity. The Government to increase use of the fuel. Moreover,

22 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

New Exploration Licensing policy government initiatives for energy Strong Foundation (NELP) and Hydrocarbon Exploration conservation, rising consumer At Surya Roshni, our legacy, ethics Policy (HELP), have strongly DZDUHQHVVDERXWHQHUJ\HIͤFLHQW and culture are more agile and emphasised on enhancing the products, affordable pricing and futuristic. We are constantly building domestic exploration of oil and gas product innovations that are in sync HIͤFLHQFLHVLQRXURSHUDWLRQVDORQJ WRDWWDLQVHOIVXIͤFLHQF\7KHUHLV with the overall trend of digitisation. with investments in future-positive DOUHDG\DVLJQLͤFDQWGHPDQGXSWDNH Smart lights are steadily appearing businesses. We have onboarded as well as improvement in the overall on many buyers’ must-have lists FINANCIAL SECTION REPORTS STATUTORY industry-best professionals that will tender activity by the Government- because of its ability to improve drive our operations and system run oil and gas companies, which will security and comfort and with implementations. Besides, we VLJQLͤFDQWO\FRQWULEXWHWRWKHJURZWK VLJQLͤFDQWUHGXFWLRQLQWKHHQHUJ\ continue to monitor developments Over USD 300 billion investments costs. The Government is also across each of our departments and are estimated over the next decade facilitating wide scale implementation adopt best practices in Corporate LQVHWWLQJXSRIUHͤQHULHVRLODQG of replacing the conventional lights Governance as per the new age gas pipelines and expansion of city with LED bulbs and streetlights business environment. The Board gas distribution network. The Indian through its ambitious programmes places great importance in providing Government’s focus on agriculture like Dayal Upadhyaya Gram Jyoti clear and transparent reporting and irrigation sector will further Yojana (DDUGJY) and Street Lighting across all its communication and generate demands for water pipes, National Programme (SLNP). ensures that it is fair, balanced and drainage set-ups, and irrigation understandable. systems going ahead. The softer aspect Before concluding my letter, I would Globally, economies are shifting Each day is a day to deliver at Surya like thank all the employees and from oil to gas. Several natural Roshni. Everyday, I see how the our dedicated Management Team gas distribution companies have for their efforts and achievements dedication and hard work of my revived their investment plans, over the past year I would also colleagues are quietly transforming which include construction of new acknowledge our Board Members the face of the Company – making it pipelines as well as replacement of for their constant guidance towards future ready. Our belief is that it is the aging pipelines. These upcoming driving Surya Roshni’s vision in the empathy, the trust and the simplicity projects are expected to increase right direction. Going ahead, we will that will make us a preferred brand. the opportunities in the global pipe continue to scout for opportunities Our sharply customer-centric industry by many folds. to deploy capital and deftly manage approach will ensure we continue to The Indian lighting industry is RXUͤVFDOSULRULWLHVLQOLQHZLWKRXU chart a differentiated, accelerated organisational objectives. expected to grow tremendously, even and disciplined path to growth. over the long term, on account of We embrace the best corporate I also extend my sincere gratitude the demand for a smart, connected governance practices, empower towards our stakeholders, bankers OLIHVW\OHDQGHQHUJ\HIͤFLHQW and customers for the deep faith they communities, focus on preserving the products. According to ELCOMA, have imposed on us. natural environment, and ensure the the industry is expected to reduce progress and well-being of people. energy consumption for lighting Best Wishes, from the present 18% of total power Our CSR arm – Surya Foundation consumption to 13%. The lighting is committed in elevating the level Jai Prakash Agarwal market in India is evolving rapidly, of weaker sections of the society Chairman moving from using conventional by empowering them in the areas products to LEDs. This transition is of health, education and social driven by an increasing number of upliftment.

Chairman’s Statement 23 We have strategically invested in building our capacities and capabilities. Our disciplined execution has translated into ERWKLPSURYHGͤQDQFLDO performance as well as developing a strong foundation for an optimistic future ahead of us.

Dear Shareholders,

I am delighted to report that we During the year we received over retain strong market share in the have performed tremendously well ` 500 crore worth of orders for API organised segment. The LED Lighting in FY2018-19. Our Group turnover pipes for Oil & Gas transportation Systems are emerging as wonderful, touched around ` 6,000 crore (US$ and CGD from IOCL, Bharat Gas flexible and versatile products with 850 million) mark as we continued and several other CGD companies. strong energy-savings and high demonstrating the success of our These orders will lead to full capacity aesthetic quotient. With continuous business model and strong brand utilisation of 3LPE Coated pipe technological innovations, the image created across India and 50 manufacturing unit in FY 2019-20. The LED is undergoing yet another countries globally. Hindupur unit has further strengthened transformation from being our market share in the premium ‘conventional’ to ‘connected’. This will Operational review – markets of South India. As a result of further broad-base the application which, we are further ramping up the Steel Pipes and Strips areas. The next generation LED will annual capacities to 2,00,000 MTPA by offer smart solutions that will adjust Our operational revenues from the WKHHQGRIWKHFXUUHQWͤQDQFLDO\HDU to your needs and requirements. It steel pipes and strips segment Operational review – can be part of a data network and can witnessed 25% growth with 10% be controlled remotely via an app, increase in volumes. We commenced LED Lighting making lives easier. Our advanced commercial production at our The operational revenues from the lighting research and development newly set-up 3LPE coated pipe LED lighting witnessed 36% growth. centre (R&D), Surya Technology manufacturing unit at Anjar (Gujarat). Our LED offerings continued to &Innovation Centre (STIC) at Noida

24 ANNUAL REPORT 2018-19 Shareholders

We aim to provide competitive returns on our shareholders’ investments. OVERVIEW CORPORATE

Customers &XVWRPHUVEHQHͤWIURPSURGXFWVDQGVHUYLFHVWKDWRIIHUYDOXHLQ terms of price and quality, and that meet high health, safety and environmental standards.

Actively Employees Our people are able to progress their careers, in a dynamic and committed fast-moving company. towards FINANCIAL SECTION REPORTS STATUTORY stakeholders Suppliers and distributors Our suppliers are able to grow their businesses alongside value creation our own.

Society 6RFLHW\EHQHͤWVIURPWKHHQHUJ\HIͤFLHQF\RIRXU/(' lighting, reducing demand for power generation and the emission of greenhouse gases.

(NCR) continues to develop disruptive Airport Terminal, Varanasi Bypass country, its infrastructure needs product offerings to cater to the and lighting up India’s longest are humongous. This will lead to ‘smart’ requirements of tomorrow. Rail-Road Bridge, the 4.94 Km a strong demand for pipes from ‘Bogibeel’ in Assam. the construction of new homes; it During the year, we had the privilege will also generate demand for API of illuminating the entire ‘Kumbh Active execution. Ready for pipes for oil and gas transportation Mela’, the largest religious gathering to these households. With robust in India. We installed over 25,000 high the next wave of growth investments plans of the leading power street lights and flood lights At Surya Roshni, we have strategically players in the oil & gas segment, luminaries at this event. The lights invested in building our capacities the demand for our products is were specially designed to provide and capabilities. Our disciplined clearly visible over the next decade. high illumination levels with high execution has translated into both energy savings and long life. It further LPSURYHGͤQDQFLDOSHUIRUPDQFH The second important driver is helped the Government save energy, as well as developing a strong India’s alarming water scarcity. reduce waste and cut costs. We have foundation for an optimistic future According to Niti Aayog’s 2018 also completed a number of turnkey, ahead of us. With India continuing Composite Water Management large-scale LED lighting projects on a strong growth path, it is vital to Index (CWMI), over 600 million identify the areas that will drive our including installation of High Power people in our country live in growth over the near term. LED Flood Lights at Kandla Port, extreme water crisis. It further ,2&/̵VUHͤQHU\DW3DQLSDW.RONDWD India being a densely populated stated that in 2014-15, just

Managing Director’s Message 25 Rural India, which contributes more than 50% of our sales shall continue to be our focal points owing to strong Government measures towards uplifting their quality of life.

13.3% of India’s 17.8 crore rural We will continue to capitalise on and encourage cross selling through households had piped water the Government orders through our distribution channel. We will connection. This has gone up by EESL, and keep illuminating the also continue to invest in publicity MXVWLQͤYH\HDUV7KH&HQWUH̵V nation. We are also expecting an to enhance visibility of our products. next big focus is on making uptick in demand for lighting from All these initiatives will strengthen piped water available to these connecting points of roads into our margins going ahead. We will households. Initiatives of river primary and rural roads. Smart further drive our sales force through linking project and ‘Har Ghar Nal Cities mission will provide funds for transparent policies, competitive FKDQQHOͤQDQFLQJDQGSHUIRUPDQFH ka Jal’ Yojna will drive demand HQHUJ\HIͤFLHQWHFRV\VWHPLQ linked incentives, foreign tours and for water transportation pipelines cities across the country boosting the demand for ‘connected’ increase our customer touch points going ahead. lightings from this segment. going ahead. In the lighting segment, we will We thank you for your interest and continue to focus on the consumer Strengthening operationally support and, on behalf of all of our side LED sales driven by higher 2SHUDWLRQDOO\RXUIRFXVRQHIͤFLHQF\ employees and Directors, I promise acceptability, affordability and improvement through cost and you that we will apply ourselves awareness of LEDs. Besides, there energy rationalisation measures wholeheartedly and diligently to would be an increasing thrust on and de-bottlenecking of capacities capitalise the encouraging growth downlighters, batons and LED will continue. Our focus on value- prospects going head. ͤWWLQJVEDVHGRQVPDUWOLJKWLQJ added pipes like primer coated,heat concepts which will eventually treated, alkaline, rust-preventive increase the number of light points and sewage-ended pipes will drive Best wishes, and drive our volumes. Besides, we premium across niche markets. In Raju Bista will continue exploring institutional the lighting and consumer durables Managing Director opportunities for illuminating major business, we will continue to enhance public attractions. our innovative and premium offerings

Conference on futuristic intelligent lighting by ELCOMA

26 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE FINANCIAL SECTION REPORTS STATUTORY

Jai Prakash Agarwal Raju Bista Urmil Agarwal Executive Chairman Managing Director Women Director

Driving force behind creating Surya Young, dynamic with 33 years of age, Woman director of the Company, as one of the most reputed, trusted has been the growth engine for the having sound business acumen & and successful Company in both Company. His discipline, dedication, understanding of both the businesses business verticals viz. Steel Pipe visionary power and relentless of the Company. & Strips and Lighting & Consumer efforts has helped in achieving the Durables. overall growth of the Company. He is President of ELCOMA. He is also the Member of Parliament.

Vinay Surya T S Bhattacharya Ravinder Kumar Narang Whole-time Director Independent Director Independent Director

Possesses vast experience of Ex-MD of SBI has an illustrious Ex-Chairman of IOCL with vast over 21 years in Marketing, Export, professional career of 44 years. H[SHULHQFHLQWKHͤHOGRI2SHUDWLRQV Commercial, Financial & Operational Project Development & Marketing ͤHOG+HKDVGRQHDQ0%$IURP Network. Swinburn University, Australia.

Board of Directors 27 Board of Directors (contd.)

Krishan Kumar Narula Surendra Singh Khurana Sudhanshu Kumar Awasthi Independent Director Independent Director Independent Director

Ex-Chief General Manager from SBI Ex-Chairman of Railway Board and Ex-Managing Director of PNB Capital. Chandigarh (LHO). He is also the ([RIͤFLR3ULQFLSDO6HFUHWDU\WR Chairman of the Audit Committee. Government of India.

Sunil Sikka Kaustubh N Karmarkar Independent Director Whole time Director

A post graduate in Management Possesses vast experience of over (FMS Delhi) and an Ex-President of \HDUVLQWKHͤHOGRI0DQDJHPHQW Havells (India) Limited and advisor & Human Resources and Planning at ELCOMA. During his tenure, he led multiple initiatives to accelerate growth in marketing of consumer electrical and lighting in India.

28 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE FINANCIAL SECTION REPORTS STATUTORY

R. N. Maloo Shri Tarun Baldua Executive Director & Group CFO CEO – Steel Operations

$TXDOLͤHG&$ZLWK\HDUV $TXDOLͤHG&KDUWHUHG$FFRXQWDQWZLWK experience in Corporate Affairs, 34 years of experience in Commercial, Finance, Commercial & Taxation. Operations and Administration of He held CFO positions in renowned various businesses across industries. companies and also in CA practice as partner with M/s Kalani & Co, Jaipur.

Ramanjit Singh B. B. Singal CEO – Lighting Operations Sr. Vice President & Company Secretary

$TXDOLͤHG0%$RSHUDWLRQZLWK $TXDOLͤHG&$&RPSDQ\6HFUHWDU\ years of experience in Operational and Cost Accountant having a rich and served on the post of Sr. Director experience of over 24 years in Secretarial at Philips India. He led multiple Function, Corporate Laws, Accounts, initiatives to accelerate innovation Direct Tax & Investor Relationship. & growth in lighting and home appliances industry.

Board of Directors & Key Management Personnel 29 At Surya Roshni, responsible business sustainability and corporate responsibility go hand in hand. The Company aims to create value for their local communities by improving their quality of life and building trust. The community connect initiatives undertaken by the Company are guided by ̴DIͤUPDWLYHDFWLRQ̵SROLF\IRULPSURYLQJWKHOLYHVRI socially and economically marginalised sections of society.

The community betterment initiatives takes forward the legacy of Surya Group. The dedicated CSR arm – Surya Foundation – discharges the responsibilities. 7KHRSHUDWLRQDODUHDVODUJHO\IRFXVLQWKHͤHOGV of health, skill development and education

30 ANNUAL REPORT 2018-19 Projects:

Bal Vikas Kendra OVERVIEW CORPORATE The Company’s “Bal Vikas Kendra” are established in the remote and far-flung interior rural villages across 15 states in India. They focus on imparting moral education and values by training young school going children and dropouts. Besides, they also teach yoga and meditation and inculcate the spirit of patriotism in them to develop them into responsible citizens of the country.

The impact is visible in the form of

improvement behaviour improvement FINANCIAL SECTION REPORTS STATUTORY amongst the children and improvement in their educational knowledge and outcome.

Development of preventive and cost-effective health systems of naturopathy and yoga The Company proactively promotes naturopathy and yoga across India through the dedicated wing,the International Naturopathy Organization (INO). The Company organises awareness camps and seminars throughout the year across various locations across India. The foundation also conducts Naturopathy Doctors and Management Training Programme for practitioners from India as well as abroad.

Personality Development of Youth The Company dedicatedly promotes personality improvements of today’s youth through various personality development programmes. It conducts training sessions on personality development and soft skills, the outcome of which is quite remarkable.

crore CSR spends in 2018-19

Corporate Social Responsibility 31 REGISTERED OFFICE STATUTORY AUDITORS Surya Roshni Limited Ashok Kumar Goyal & Company Prakash Nagar, Sankhol, Chartered Accountants Bahadurgarh - 124507 (Haryana) COST AUDITORS Corporate Identity Number (CIN ) - L31501HR1973PLC007543 R. J. Goel & Co. Website : www.surya.co.in BANKERS Phone : 01276 - 241540 1. State Bank of India Fax : 01276 - 241886 2. HDFC Bank Limited 3. Bank of Baroda HEAD OFFICE 4. Canara Bank Padma Tower - 1, 2nd Floor, 5. Punjab National Bank 5 Rajendra Place, New Delhi - 110008 6. IDBI Bank Limited email : [email protected] 7. DCB Bank Limited 8. Export-Import Bank (EXIM) WORKS - STEEL DIVISIONS Rohtak Road, Sankhol AUDIT COMMITTEE Bahadurgarh -124507 (Haryana) Shri Krishan Kumar Narula, Chairman email : [email protected] Shri Tara Sankar Bhattacharya, Member Shri Surendra Singh Khurana, Member Plot No. P-1 to P-20, Ghirongi Industrial Area, Malanpur, District Bhind (Madhya Pradesh) 67$.(+2/'(5̵65(/$7,216+,3&200,77(( Shri Krishan Kumar Narula, Chairman 57, Golapuram Industrial Area, Hindupur, Shri Ravinder Kumar Narang, Member Dist. Ananthapuram (A.P.) - 515201 Shri Raju Bista, Member Survey No. 188,189 & 190/1, CORPORATE SOCIAL RESPONSIBILITY COMMITTEE Village Bhuvad Taluka –Anjar, Distt-Kutchh Anjar – (Kutchh) Gujarat - 370130 Shri Krishan Kumar Narula, Chairman Shri Jai Prakash Agarwal, Member Shri Raju Bista, Member WORKS - LIGHTING DIVISION 7k.m. Stone, Kashipur - Moradabad Road NOMINATION AND REMUNERATION COMMITTEE District Udham Singh Nagar, Shri Krishan Kumar Narula, Chairman Kashipur - 244713 (Uttarakhand) Shri Ravinder Kumar Narang, Member Shri Surendra Singh Khurana, Member J - 7, 8 & 9 Malanpur Industrial Area Malanpur, District Bhind (Madhya Pradesh) COMMITTEE OF DIRECTORS

Plot No. 9-13, Balaji Industrial Estate, Shri Krishan Kumar Narula, Chairman Mahuakheraganj, Kashipur, Shri Raju Bista, Member District U.S. Nagar, Uttarakhand Shri Sunil Sikka, Member

32 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE STATUTORY REPORTS REPORTS STATUTORY Section 1

Company Overview Amidst the journey from a subtle beginning to spearheading lighting manufacturing units are located in Uttarakhand the technological revolution in the 21st century, Surya and Madhya Pradesh. FINANCIAL SECTION Roshni has exceedingly come a long way from being The Company is strongly positioned as one of India’s just another steel tube making unit back in 1973. Today, largest exporter of ERW Pipes, largest producer of ERW Surya Group has emerged into a colossal of ` 5,975 GI pipes and second largest lighting company. Its large crore (US$ 850 million) Indian manufacturing company, distribution network of over 2,500 distributors and exporting products to over 50 countries across the globe. 2,50,000 retailers countrywide drives the B2C business It has manifested, a strong brand image and created an of the Company. Besides its B2B project business is irreplaceable mark onto the minds and consideration of equally gaining importance and driving revenues year customers. on year. With ISO 9001:2015, ISO 14001:2015 & OHSAS Surya Roshni business interests are broadly aligned into FHUWLͤFDWLRQVXQGHULWVEHOWDQGSURGXFWVWKDW two areas: Steel Pipes & Strips and Lighting & Consumer are accredited with an international performance of safety Durables. standards, Surya stands tall on its commitment to deliver eco-friendly and quality products. Surya is also known for In the Steel Pipes & Strips segment, the Company being one of the most trusted and preferred brands with manufactures range of steel pipe products for Agriculture, various Govt. departments, institutions and international Infrastructure, Oil & Gas and Construction Sectors. Its buyers. The Company has recently been awarded with offerings for the Oil & Gas sector are approved by the ‘Brand Excellence Award in Lighting Category’ in North American Petroleum Institute (API). The pipe manufacturing India Best Brand Awards, 2018 and was also awarded with units are strategically located in Haryana, Gujarat, Andhra ‘Champions of Rural Market’ award from the prestigious Pradesh and Madhya Pradesh that allows the Company newspaper The Economic Times. The Company is geared to mark its presence across the length and breadth of up with fresh capacities and new product lines to cater to the country and across the globe including the Middle WKHXQGHUO\LQJLQGXVWULDORSSRUWXQLWLHV:LWKVWURQJͤVFDO East, Europe, Africa and Asia. The merger of its associate prudence, enhanced focus on value-added products and company e-Surya Global Steel Tubes Limited has further LQFUHDVLQJRSHUDWLRQDOHIͤFLHQF\PHDVXUHVWKH&RPSDQ\ boosted the Company’s positioning in the industry. is all set to drive strong returns to stakeholders going ahead. Surya’s Lighting Segment which was initiated in 1984 with the dream of ‘Lighting Every City Every Home’, three decades down the line, it is appraised as one of the leading brands in the Lighting industry. The LED technology has Section 2 opened up a new frontier and is potentially acknowledged as the future of lighting technology. The Company ensures WKDW WKH /('V PDQXIDFWXUHG DUH HQHUJ\ HIͤFLHQW ZLWK Industry structure and developments extremely lower maintenance cost and comes with the As India marches ahead on a solid growth trajectory facilitation of a remarkable life span. All these factors add to complete 75 glorious years of independence, Indian to the advantages of LED lighting that will ensure that the industries remain committed to building a better India. revolution in the lighting industry is propelled forward. Differences between rural and urban India will be reduced, Under Lighting & Consumer Durables, the Company offers making physical, digital and social infrastructure in rural a wide range of lighting products – from GLS to LEDs and areas at par with the best in the country, with a special LED luminaries. Under the Consumer Durables, it offers focus on education and health. The Government has several models of Fans and Kitchen Appliances like – ambitions plans of making India a 5 trillion economy by Mixer Grinders, Induction Cooktops, Toasters, Irons, Water 2025. This will be driven by shift in consumer behavior Heaters and Air Coolers, among others. The Company’s and expenditure patterns. With an enormous population,

Management Discussion And Analysis 33 favourable demographics and high catch-up potential due The Indian Steel Tubes and Pipes industry has an to low initial GDP per head India will continue to rise in the enormous untapped growth potential. The industry global GDP league table in the coming decades. offers seamless, SAW, ERW pipes, galvanised pipes, steel sections and steel panels. Today, India has evolved as the leading ERW steel tubes manufacturing hub in the world with the domestic demand levels of around 10 MTPA. It ranks amongst the top three manufacturing hubs in the global pipe industry, after Europe and Japan. The pipes are extensively exported to countries like the US, Europe, Malaysia, Thailand, the Middle East, and Indonesia owing to its competitive pricing, high quality and locational advantage. Steel pipes demand is mainly driven by infrastructure activities like shipping, aviation, housing, roads & highways, power and oil & gas transportation, city gas distribution and railways & airport modernisation. a. Steel Tubes and Pipes /DVWWKUHH\HDUVKDYHZLWQHVVHGDVLJQLͤFDQWGHPDQG uptake owing to an improvement in the overall tender Steel is one of the world’s most essential materials. It is activity by the government-run oil and gas companies. a fundamental to the growth of any nation as it forms the The industry is set to leverage opportunity from backbone of industrialisation. Steel demand in India is India’s $10 billion push to expand its natural gas primarily driven by strong economic performance and network to more of its urban masses and cut pollution. investments in housing, infrastructure like railways, Besides, low penetration of pipes and measures ports, roads, airports, etc. The industry has evolved such as the setting up of the National Gas Grid, river VLJQLͤFDQWO\RYHUWKH\HDUVDQGLVIXUWKHUH[SHFWHGWR water interlinking projects, revamping the water and continue its growth momentum. sanitation infrastructure, and higher oil prices, will lead Globally, Oil & Gas Industry is one of the largest to a spurt in exploration and production investments consumers of Steel Tubes and Pipes. The demand and thereby higher demand for pipes. remained comparatively lower over the past few Surya Roshni is the largest exporter of ERW pipes years owing to subdued oil prices. Recently, with the and largest producer of ERW GI Pipes in India. It pull-out of the US from the Iran nuclear deal sent manufactures ERW Steel pipes (Galvanised Black, oil prices to a four-year high, reaching $80/barrel. Hollow section), API, Spiral and CR strips, having Increasing prices will lead to surge in drillings leading wide applications of its products in agriculture, to additional demand for new pipes. The steel tubes infrastructure building, oil & gas and construction and pipes market is expected to reach an estimated sectors. The positive industry optimism coupled with $97.7 billion by 2023 with a CAGR of 3.9% from 2018 to Government’s reforms on formalizing the economy will 2023. The major drivers for this market are increasing drive demand for Company’s products going ahead. construction of new pipelines for oil and gas, water Gas Transmission and wastewater, replacement of aging pipelines, and infrastructure development across the Middle East and Globally, economies are shifting from oil to gas. North American markets. Natural gas distribution companies have revived their

Factors that will drive the future demand for The Indian Government offered 23 Oil & Gas and CBM blocks in the third round of 2SHQ$FUHDJH/LFHQVLQJ3ROLF\ 2/$3 7KHIRXUWKDQGͤIWKURXQGVDUHH[SHFWHG steel tubes and pipes to offer another 50,000 sq km and 40,000 sq km of exploration acreage which will together enhance India’s exploration acreage to 300,000 sq km.

The Indian Government stipulated 15% value addition in India in bidding for projects above ` PQZKLFKSURYLGHVOHYHOSOD\LQJͤHOGWRGRPHVWLFPDQXIDFWXUHUV

7KH8QLͤHG*DV3ROLF\WKUXVWVRQXQLͤHGSULFLQJOHDGLQJWROD\LQJRIQHZRLODQG JDVSLSHOLQHVDQGH[SORUDWLRQRIQHZJDVͤHOGV

Increasing spends on ambitious infrastructure projects, river linking projects across the country, initiatives like ‘Har Ghar Nal Ka Jal’, affordable housing, and smart city development shall boost the demand for steel pipes.

34 ANNUAL REPORT 2018-19 At present, 31 companies are developing CGD networks across 81 geographical locations in 21 states and Union territories, supplying clean cooking fuel in CORPORATE OVERVIEW CORPORATE the form of piped natural gas to about four million households. The Government have ambitions plans to provide 10 million PNG connections. Besides, CGD has been accorded the highest priority in gas allocation while allocating 100% domestic gas for the domestic PNG and CNG segments. On the regulatory front, the Petroleum and Natural Gas Regulatory Board (PNGRB) STATUTORY REPORTS REPORTS STATUTORY has reformed to a large extent the CGD authorisation regulations to address the impediments faced in previous bid rounds. Also, some state governments KDYH LQWURGXFHG VHFWRUVSHFLͤF SROLFLHVJXLGHOLQHV enabling overall growth of CGD network in India. investment plans, which include construction of new During 2018-19, India completed two rounds of city FINANCIAL SECTION pipelines as well as replacement of aging pipelines. gas distribution auction. Both the bidding rounds The Government’s vision to achieve a gas-based saw more contracts awarded than ever, higher than economy needs a massive network of pipelines for all the previous 8 bidding rounds combined. That transportation of natural gas to various corners of the would extend the CGD coverage to over 400 districts country. equivalent to over 70 per cent of India’s population. This will lead to development of massive CGD There has been an increasing concern over the pollution infrastructure of providing PNG connection to close to levels of major cities and towns across India. This ͤYHFURUHKRPHVVHWWLQJXSDERXWWR&1* necessitates the Indian Policy makers to consistently stations and laying of 25,000 km to 30,000 km of steel stress the role of natural gas in India’s overall energy pipeline in the next eight years. mix in the 21st century. This will not only lead to ` improvement in the environment but will also reduce According to Live Mint, investments as much as 1.1 the overall energy costs. At present, India has around trillion is expected to pour into distribution projects 16,788 kms of operational natural gas pipeline and over the course of the next decade around 14,239 kms are under development. Major part Surya Roshni is evenly poised to respond to the of domestic production in India has been concentrated industrial opportunities stated above through its best- over western and southern region of the country and in in-class quality offerings in its steel pipes and strips absence of adequate natural gas pipeline infrastructure segment. The Company is geared up to achieve its the northern and eastern region of the country are gas business goals through adoption of latest technology, starved. However, to satiate the increasing demand DFKLHYLQJRSHUDWLRQDOHIͤFLHQFLHVSURYLGLQJH[FHOOHQW and strengthen the domestic gas distribution within the country, the Centre has planned an initial spend of ` 70,000 crore to spread gas pipelines across the country. It further aims to increase the share of natural gas from the current levels of around 6% to 15% by 2022 and upto 20% by 2030. The demand at the same time is expected to grow to 746 MMSCMD by 2029-30. City Gas Distribution The Government has envisaged to develop the National Gas Grid and City Gas Distribution networks in the country to enhance the availability and accessibility of natural gas to public at large. City Gas Distribution (CGD) refers to transportation or distribution of natural gas to consumers in domestic, commercial or industrial and transport sectors through a network of pipelines. The current prominent method of delivery i.e. delivering gas through cylinders is energy intensive and tedious because of the needless involvement of intermediaries including gas agency, distributors etc. Piped supply, on WKHRWKHUKDQGLVPRUHHIͤFLHQWDFFHVVLEOHDQGKHOSV in maintaining a continuous supply in the event that the fuel is used in industries.

Management Discussion And Analysis 35 customer services and launching innovative and GLYHUVLͤHGSURGXFWVDQGUHWDLQLWVSURPLQHQWSRVLWLRQ in the Indian steel pipes Industry. b. Lighting The Indian lighting industry is evolving rapidly. There has been a shift from conventional Fluorescent Lighting (FTL and CFL) incandescent bulb and High Intensity Discharge (HID) lamps to LEDs owing to its HQHUJ\HIͤFLHQF\7KHFRQYHQWLRQDOOLJKWLQJKDVEHHQ on a decline mode since four years and the market is currently going through a visible demand shift. India is the second most populous country in the world and \HW LV RQO\ WKH ͤIWK ODUJHVW HOHFWULFLW\ FRQVXPHU ̰ D situation that has led to an ever-widening demand- supply gap. However, the acceptance levels of the LEDs is now on a rise with higher demand being driven from the construction segment, replacement as well as UXUDO,QGLD7KHUHKDVEHHQDOVRDVLJQLͤFDQWULVHLQWKH demand for battens, downlighters and smart lighting for households. The Electric Lamp and Component Manufacturers Association of India (ELCOMA) predicts key drivers of India’s LED growth story. The industry that LED market will grow to ` 261 billion by 2020, offers innumerable opportunities for growth over taking the LED Market share to 80% of the total lighting the next decade. With Government’s steady focus Industry. RQ SURPRWLQJ HQHUJ\HIͤFLHQW /('V WKH LQGXVWU\ Key factors that are expected to boost the market would gradually shift towards a consolidation of the include declining LED prices coupled with favourable organised segment. government initiatives to provide LED lights at subsidised cost. Under Street Lighting National c. Consumer Durables Programme (SLNP), EESL seeks to replace 3.5 crore FRQYHQWLRQDO VWHHU OLJKWV ZLWK HQHUJ\ HIͤFLHQW /(' lights across the country. At present, around 9 million VWUHHWOLJKWVKDYHEHHQUHSODFHGZLWKHQHUJ\HIͤFLHQW LED lamps. The project is implemented across 23 States and Union Territories. Additionally, other Government schemes introduced post 2014 include DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana) to improve electrical supply in rural India, Bijli Har Ghar Yojana (Saubhagya) to electrify 40 million families in rural and urban areas and Unnat Jyoti (UJALA) to distribute 770 million LEDs across 1. Fans 100 cities. Under UJALA over 350 million LED bulbs have been distributed to the consumers in India by the 7KH ,QGLDQ )DQ PDUNHW LV EURDGO\ FODVVLͤHG LQWR end of June 2019. Ceiling fans, Table fans, Pedestal fans and Wall fans. While ceiling fans dominates the organised market in Going ahead, smart, connected LED lights are the terms of volume, table fans, pedestal fans and wall next big thing in the LED lighting market. Lighting fans follow also are gaining equal prominence. The systems are getting smarter as autonomous, self- unorganised sector is heavily dominated by ceiling fans commissioning illumination systems are emerging. and table fans. Much of the sale of organised sector The industry has switched from analogue to digital is in the metro, tier I and tier II markets. Moreover, the systems as LED lighting allows users to control, monitor export of fans from India has grown considerably in and measure lighting output. This transformation is the last few years and is a testimony to the quality and taking place across public, home and professional development of fan industry in India. lighting, and these smart connected LED lights will emerge as the most widely adopted IoT devices Going forward it is projected that the Indian electric within the next few years. Control devices, dimmers fans market will surpass $ 2 billion by 2023. With and wireless lighting with advanced sensors will the growing housing sector, increasing disposable cater to the needs of modern consumers. Technology incomes, higher number of organised outlets, rising adoption and consumer price sensitisation will be the preference for online sales and emergence of smart

36 ANNUAL REPORT 2018-19 fans (like dust free, LED), the demand for electric fans with adequate handling facilities. These pipes are sold will continued to grow.g under the brand ‘Prakash Surya’. The ERW and Spiral welded pipes as well as API pipes are exported and CORPORATE OVERVIEW CORPORATE widely accepted across 50 countries globally.

Products STATUTORY REPORTS REPORTS STATUTORY

2. Home Appliances The Indian Home Appliances Industry has consistently grown with current trends and reinventing old A. ERW Steel Pipes (Galvanised (GI), Black and Hollow Section) technologies to suit the consumer requirements of FINANCIAL SECTION today. In today’s day and age, consumers are looking for The Company’s ERW Steel pipes are manufactured the convenience in the form of household appliances. LQWKHUDQJHRI̹͆WR̹GLDPHWHU7KHVHSLSHV Formerly known as ‘appliances of the west’, products are broadly used across Agriculture, Industry and like the vacuum cleaner, slow juicers, hand blenders, Construction activities like scaffolding, casing and washing machines, etc have made its way into tubing in bore wells. It forms an important mode authentic Indian kitchens. The common factor driving to transport water, gas, petroleum, chemicals the demand for such appliances is the proposition of and other liquids over long distance. These convenience, time reduction on daily chores. The year SLSHVSRVVHVVWKHVWUHQJWKVWRPHHWWKHGLIͤFXOW 2018, revolutionised the home appliances industry prerequisites of the industry. The quality of the with the introduction of innovations like smart pipes manufactured are as per national and appliances inclusive of energy saving tools, wireless, international specified standards. sensor-driven products, voice command for hand-free USPs movement, digital features and mobile integration. No. 1 in India (ERW GI) and exports (ERW) Over the years, the markets and consumers have changed considerably. Rising per capita disposable Meets 8-10% of India’s demand for GI pipes income of consumers, especially upper and lower and comprises of 15% share in the organised middle income groups, aspiring millennials, growing segment working population and the ever-evolving consumer Finds application in India’s agriculture sector lifestyle are responsible to boost the home appliances with over 40% market share in Northern states industry in India. The industry is expected to witness a (Madhya Pradesh, Rajasthan, Maharashtra, 13% CAGR till 2023. Haryana) and around 60% market share in South (, Andhra Pradesh and Kerala) Provides piping requirements for housing in Section 3 the hilly regions like Jammu and Kashmir, Uttarakhand and Himachal Pradesh etc. Operational Review Temperature-controlled processes for right shape and aesthetics 1. Steel pipes and strips

Particulars 2018-19 2017-18 Contribution to total 74 72 revenue (%) Net revenue (` crore) 4,427 3,555 PBT (` crore) 74 64

The Company’s state-of-the-art pipe producing units are situated in Haryana, Madhya Pradesh, Gujarat, and Andhra Pradesh. Each plant is equipped with high-end machines, slitting lines, pipe mills, galvanising units, ͤQLVKLQJPDFKLQHVDQGIDLOVDIHKLJKSUHVVXUHK\GUR testing machines. Besides, each plant is also equipped

Management Discussion And Analysis 37 Applications and opportunities

EExpporrts GI Pipes Middle East, Australia and New Zealand &RQVWUXFWLRQVHJPHQWDQGͤUHͤJKWLQJ Europe, Germany and UK Applications across railings, public places, railway stations and buildings, where aesthetics plays a big role Opportunities: A proven performer in the export markets. The Company stands to leverage the construction activities in its areas of RSHUDWLRQV%HVLGHVLWZLOOFRQWLQXHWRFDWHUWRWKHUHTXLUHPHQWVRIWKHͤUHͤJKWLQJLQGXVWU\

Domestic GI Pipes Black Hollow Agriculture & irrigation Industrial infrastructure/construction works/fabrication Engineering & Casing and tubing Road transportation – side structures/fencing (section architectural structures Water transportation/ pipe, sign boards) Airport, metros, railways plumbing and pipelines Railways – platforms, bullet trains, metros Urban development Green house Airports structures Electrical poles / telecom  )LUHͤJKWLQJ Smart Cities – new pipelines for water towers Solar panels River connectivity and interlinking Solar structure Spur lines– joining main Door frames, window frames and furniture (section pipes) Sign boards line to home lines Scaffoldings

Opportunities: With strong impetus on agricultural segment and water scarcity issues, water transportation is going to be the next big opportunity. Strong industrial development, infrastructure modernisation and smart cities will continue to drive demand for Surya Roshni products. With strong market leadership, the Company stands to leverage the opportunities.

quality standards of its products which is at par with the worldwide API line pipe manufacturers with internal and external coatings. Its high VSHFLͤFDWLRQVWDQGDUGVPHHWVWKHUHTXLUHPHQWVRI both national and international markets, including that of American Petroleum Institute (API). It has WKH QHFHVVDU\ DFFUHGLWDWLRQV DQG FHUWLͤFDWLRQV of 9001, 14001 and 18001. Diverse pipes details, B. API & Spiral such as, EN, BS, AUSTRALIA and ASTRA GRADE are likewise produced by the Company. The Company manufactures world-class API pipes with different types of coatings like 3LPE, 3LPP, FBE The spiral and welded pipes are manufactured in (single & dual layer) and internal epoxy to provide the range of 18’’ to 105’’ with maximum thickness rust-free properties to the pipe and enhance its of 1’ (25.4 mm). The internal and external coating durability. The Company has maintained high LVGRQHIRUSLSHVUDQJLQJIURP̹WR̹LQGLDPHWHU

38 ANNUAL REPORT 2018-19 Applications and opportunities

AApppliiccaattionnss CORPORATE OVERVIEW CORPORATE Oil pipelines Natural gas Oil well casing (ONGC) City gas distribution Water pipelines - mains, sewerage, industrial water lines and Plant piping

Opportunities: Demand for cross country pipelines through the expansion City Gas Distribution Network. Strong REPORTS STATUTORY investments by hydrocarbon majors will further drive piping demand for oil & Gas. FINANCIAL SECTION

C. Cold rolled strips and sheets 7KH&RPSDQ\̵VFROGUROOHGVWULSVDQGVKHHWVͤQG extensive application as critical input across auto segments, motor stamping, furniture, and ͤWWLQJV GRPHVWLF DSSOLDQFHV GUXPV DQG EDUUHOV cycle rims, umbrella tubes and tears and rips and engineering applications. Owing to the stringent VSHFLͤFDWLRQV RI WKHVH DSSOLFDWLRQV WKH VWHHO strips have intrinsic quality standards, surface ͤQLVK DQG FORVH UHVLVWDQFH RQ GLPHQVLRQV 7KH Company is adequately equipped to meet the testing needs of the markets through its cold equipped with high-end machines, slitting lines, rolled plant at Bahadurgarh (established in 1991 SLSH PLOOV JDOYDQLVLQJ XQLWV ͤQLVKLQJ PDFKLQHV and later upgraded in 2008). The plant serves NCR and fail-safe, high pressure hydro testing and different markets of north India, particularly machines. Besides, each plant is also equipped concentrating on the automobile sector with an with adequate handling facilities. These pipes are installed plant capacity of 1,15,000 MT per annum. sold under the brand ‘Prakash Surya’. The ERW The Company’s state-of-the-art pipe producing and Spiral welded pipes as well as API pipes are units are situated in Haryana, Madhya Pradesh, exported and widely accepted across 50 countries Gujarat, and Andhra Pradesh. Each plant is globally. Steel pipes and strips Capacities (p.a)

3 LPE Coating Facilities 9,00,000 MMTT 2,00,000 MMTT 1,15,000 MMTT External: 1,850,000 SQ. MMTTRR. ERW Pipes (including GI Spiral (including offline CR Sheets capacities of 2,50,000 MT) capacities of 1,40,000 MT) Internal: 1,100,000 SSQQ. MMTTRR.

Management Discussion And Analysis 39 Highlights 2018-19

WWhhat haass the Coommppaanyy achieveed //RRQJWWHHUUP EEHQQHͤWV Commenced commercial production of the newly set-up 3LPE Enhance presence in Oil & Gas sector Coated Pipe manufacturing unit at Anjar-Kutchh (Gujarat) (including CGD) as well as large dia pipe for and established record of receiving accreditations and water supply infrastructure FHUWLͤFDWLRQV Higher capacity utilisation of its existing ERW Established Hindupur facility in 2017 with 2017-18 being the and Spiral API Pipe facilities ͤUVW\HDURIFRPPHUFLDORSHUDWLRQV̰DSDUWRIRXUUHJLRQDO Savings in logistic & coating charges expansion strategy of serving the South Indian markets. During 2018-19 the initial capacity got completely utilised and the unit Improvement in top-line and bottom-line went for expansion in the second year of operation itself. Economies of scale at lower capital cost

Received over ` 500 crore orders for 3LPE from various oil & Increased market share in the premium gas and CGD players market of South India

Opportunities and demand drivers City Gas Distribution How India stays thirsty The gas economy and pipeline industry move in tandem. Only 18% of India’s 17.9 mn rural Higher the expansions in the sector, larger will be the homes have tap water demand for pipeline. The Government of India’s thrust to double the share of natural gas in India’s energy mix Year Rural household With piped water by 2030, provides around US$ 10 billion impetus to the (mn) supply (%) pipe manufacturers. Besides, in the recently concluded 2014-15 17.8 13.3 2015-16 17.7 13.6 country’s biggest city gas distribution network auction, 2016-17 17.6 15.6 which ambitiously aims to link over 10 million households 2017-18 17.9 17.0 to the gas grid by 2020, shall provide ample scope of 2018-19 17.9 18.3 growth of API steel pipe business. The number of new connections in a year has Replacement of aging pipes staggered from 17 lacs in 2014 to 9.7 lacs last year Revamping of water pipes to ensure equitable distribution New connections of water and the sanitation infrastructure. The pipe tends to get more corrosive over a long term which may get contaminated with water affecting the health of the 17.1 12.9 11.9 6.3 9.7 citizens. lacs lacs lacs lacs lacs River interlinking projects 2014-15 2015-16 2016-17 2017-18 2018-19 The Government has planned ambitious projects to interlink over 60 rivers across India. It will deal with the problem of drought and floods afflicting different parts of the country, while decreasing farmers’ dependency on uncertain monsoon rains. It is a large-scale civil engineering project to link rivers through a network of 30 canals and 3,000 small and large reservoirs across India. This project will generate higher demand for diameter pipes.

Water scarcity The Government had launched National Rural Drinking Water Programme (NRDWP) in April 2009 to provide piped water connection to 35% of rural households by 2017. However, the scheme could penetrate across barely 18.3% of rural households by end of 2018-19. To make the matter worse, the number of new connections witnessed a decline. As a result, the centre is strongly focussing on providing piped water to households across rural India through its schemes like ‘Har Ghar Nal Ka Jal’ yojna.

40 ANNUAL REPORT 2018-19 Development of smart cities, housing for all and Outlook modernisation Going ahead, the Oil and Gas Companies are tendering

The Government aims to build 100 smart cities with latest aggressively for laying new pipelines for transportation of OVERVIEW CORPORATE urban infrastructure to provide the best quality of life. Its Oil and Gas, accordingly sizeable investment opportunity ‘Housing for all’ scheme aims to construct over 3 crore is anticipated for the expansion of API cross country line. homes for weaker sections of the society. Besides that, The Government’s thrust to strengthen the agricultural and many Tier II and III cities are also getting modernised, rural economy, promote metro railways, elevated tracks necessitating the growing needs for water, gas and sewage for Railways, City gas projects, infrastructure development supply. This will generate demand for pipes. and schemes such as Bharatmala Pariyojana and Awas

Yojna will ultimately boost the Steel Pipes business. REPORTS STATUTORY Rural India The Government’s push to support agriculture sector by :LWK VWURQJ FDSDFLWLHV EHQHͤWV RI HFRQRPLHV RI VFDOH transferring, setting minimum set price for commodity, locational advantage and strong presence across the encourage e-trade and strengthen the irrigation and lab nation, the Company is set to deliver more robust growth facility will ultimately lead to saving cost, improving yield ahead. and higher consumption of tubes and pipes in the region. 2. Lighting and Consumer Durables Growth in different sector FINANCIAL SECTION Particulars 2018 - 19 2017 – 18 There has been growing need for CR strips in different sectors ranging from auto components to home Contribution to total 26 32 appliances to engineering sector. India has now become revenue (%) self-dependent for auto component and several other Net revenue (` crore) 1554 1382 CR sheets applications. Besides, there has been strong PBT (` crore) 98 92 traction from exports, which will encourage higher CR strips demand from the Indian companies. International events The Company would leverage its positively evolving international reputation of its brand ‘Prakash Surya’ to EHQHͤWIURPWKHXSFRPLQJPDMRUHYHQWVOLNHExpo 2020 in Dubai and FIFA 2022 in Qatar. Lighting Overview Surya Roshni is India’s second largest lighting company with a dominating presence in the Tier 2 & Tier 3 cities and rural areas. In the past few years, the Company has upgraded its lighting portfolio by phasing out CFL sales and bringing in diverse LED- based solutions. It has achieved exponential growth in volumes to compensate for falling LED prices DQG KDV VLJQLͤFDQWO\ PDUNHG LWV SUHVHQFH LQ ERWK B2C and B2B segments. Besides, it has consistently driven innovation by launching LED lighting range of Al-Shamal Stadium, Qatar downlighters, battens, lamps, street sights, flood lights and decorative luminaires. Being a pioneer in presenting quality productive lighting arrangements, Surya Roshni has been giving inventive and safe lighting to its clients. Its state-of- the-art integrated facilities in Kashipur (Uttarakhand) and Gwalior (M.P) ensures every product are extensively checked for a noteworthy life expectancy. A Compulsory Registration Scheme (CRS) of Deity/BIS for LED products mandates standards safety checks of LED products. The Company’s manufacturing plants have CRS approval from the Bureau of Energy (IͤFLHQF\ %,6  ,W DOVR SURYLGHV VWDU UDWLQJ SODQ IRU LED lamps which further enhances the luminous HIͤFDF\RIODPSV,WV5 'IDFLOLW\̰6XU\D7HFKQRORJ\ Al-Khor Stadium, Qatar and Innovation Center (STIC) at Noida – propels best-

Management Discussion And Analysis 41 in-class lighting lab and research focus on LED-based Spotlights innovations and offerings. The Company enjoys a Pan- LEDED wall lights India presence through its 2,500 vendors and 2.50 lakh Smart motion-sensor LEDs retailers. It also exports to over 40 nations, including the Middle East and U.K (GE, Osram and Tungsrum). Auto-dimming LEDs The Company has also marked a selective presence in supply to the EESL orders which generateed 21% of the Lighting Revenue during 2018-19. Currently, out of 8.7 million Street Lights replaced under SLNP, Surya contributed 2.7 million; out of 350.0 million LED Bulbs distributed by EESL, Surya contributed 39.5 million; out of 7.0 million LED Tube Lights distributed by EESL, Surya contributed 2.6 million. This segment is going to play a very important role in giving a very high surge to LED business in India. Fansns

Highlights 2018-19 Overview The Company’s fan business has evolved strongly since its Ranked amongst the most respectful and trusted brand entry into the market in 2014. Within a short time-span, it for lighting product in India and awarded with ‘Brand has achieved sixth ranking in the organised fan segment. Excellence Award in Lighting Category’ in North India Best Staying relevant to the markets, the Company constantly Brand Awards, 2018; also awarded with Champions of innovated to launch a wide category of designer and Rural Market award from the prestigious newspaper The colourful ceiling, pedestal and wall mounting fans along Economic Times with a wide range of domestic exhaust fans. It has been Incorporated a wholly owned subsidiary namely ‘Surya further expanding its base in this category by launching Roshni LED Lighting Projects Limited’ on 21st January QHZYDULDQWVRIHQHUJ\HIͤFLHQWIDQVSODWHGIDQVNLGVIDQV  DV 639 IRU LPSOHPHQWDWLRQ RI *UHHQͤHOG 3XEOLF and under-lite fans, among others. Street Lighting Systems in the State of Odisha under LOA for ` 59 crore Received orders from EESL aggregated to ` 255.18 crore for supply of LED Lightings Innovation-driven offerings The past three years have witnessed radical changes through de-growth in conventional lighting products, stabilisation in LED prices and fast phasing out of CFL, leading to exponential growth in LED Lighting. The Company’s R&D centre, STIC, is one of the best lighting R&D Centres in Asia that delivers innovation and best-in-class environmental friendly LEDs. The centre is equipped with Mirror Gonio-photometer Home Appliances from LMT-Germany, used for developing new generation Overview energy saving luminaries. In addition, the Company also The Company expanded its Consumer Durables portfolio provides Photometric Optical Testing facility for all kinds of to include other contemporary electrical appliances luminaries. Some of the innovative offerings include: (mainly brown goods) like – water heaters, room heaters, High-beam angle LED lamps dry irons, steam irons and immersion heater and kitchen Colour changer LED lamps appliances like mixer grinder, induction cookers and New range downlighters and LED battens toasters, among others. The Company would leverage its existing distribution strength to penetrate deeper into the LED torch with dry cell battery & rechargeable home appliances segment. During the year, division has Rechargeable lantern achieved a growth of 35% and has successfully launched Solar LEDs range of glass cooktops.

Lighting Capacities (p.a)

90 3.60 10 200 Milliioon ppiieceess Milliioon ppiieceess MMiilllliioon pip eecceess Milliioon ppiieceess LED Bulbs LED Streetlights /('WXEHV ͤWWLQJV GLS

42 ANNUAL REPORT 2018-19 in a bid to encourage aspirational and price-sensitive consumers to buy products at minimal or no interest costs ZLWKRXWIXUQLVKLQJDQ\FROODWHUDOWKDWPDNHVLWVLJQLͤFDQWO\ CORPORATE OVERVIEW CORPORATE hassle free to own these goods. Growing real estate segment With the implementation of affordable housing, RERA, rising tourism, changing buying behaviour and improvisation in literacy rate has led to growth in the residential, retail, hospitality and commercial space which will ultimately PVC Pipes REPORTS STATUTORY drive the demand for lighting and consumer durable Overview industry. The Company’s inhouse manufacturing unit develops (QHUJ\HIͤFLHQF\DQGSUHPLXPLVDWLRQ UDQJH RI 39& SLSHV ZKLFK ͤQG LWV DSSOLFDWLRQV DFURVV 7KHPDUNHWIRUHQHUJ\HIͤFLHQWSURGXFWVIRUH[DPSOH/(' water management, housing sector, agriculture & irrigation lighting is going to develop with riding on the initiative system, domestic & industrial drainage system – cold/hot that encourage the utilisation of LED lights. As, LED is not water plumbing, industrial process lines, swimming pool FINANCIAL SECTION only having longer life span, but it tends to operate well and salt water lines, among others. With capacities in place, at different temperature. Further the attention on smart WKH&RPSDQ\VWDQGVWREHQHͤWIURPWKHVL]HDEOHEXVLQHVV city projects, and changing lifestyle of the consumer along opportunity derived out of the Government’s mission to with rising disposable income will also play a vital role in provide access to drinking water under the newly launched purchase of premium product. India being the second most ‘Har Ghar Nal Ka Jal’ by 2024 under the Jal Jeevan Mission. SRSXORXVFRXQWU\LQWKHZRUOGDQGVWLOOLWLVRQO\WKHͤIWK Opportunities and demand drivers largest electricity consumer – a situation that has led to a widening demand-supply gap. With young and working Macro-economic fundamentals population this demand-supply gap is going close with rise According to a World Economic Forim Report, India is poised in the usage for home appliances. to become the third-largest consumer market after US and China. The consumer spending in is expected to grow from Rural India USD 1.5 trillion at present to nearly USD 5 trillion by 2025. The Government’s initiatives like ‘Housing for All’, rural India’s top 40 cities will form a USD 1.5 trillion opportunity HOHFWULͤFDWLRQ DQG ̴3RZHU )RU $OO̵ KDYH EHHQ DEOH WR by 2030, many thousands of small urban towns will also cover the previously underserved/unserved regions of drive an equally large spend in aggregate. In parallel, there India pretty considerably. Schemes like ‘Saubhagya plan’ will be an opportunity to unlock nearly USD 1.2 trillion of WR HQVXUH SRZHU VXSSO\ WR XQHOHFWULͤHG KRXVHKROG DQG spend in developed rural areas by improving infrastructure ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ to strengthen and providing access to organised and online retail. These the electricity infrastructure in rural areas will help the factors will strongly drive the need of consumer durables. company in the lighting segment. This has resultantly led to a shift of source of lighting from kerosene to bulb/LED. Government initiatives Rural Indian household have enough surplus to purchase 8QGHUWKHJRYHUQPHQWHQHUJ\HIͤFLHQF\SURJUDPPHVPRUH the fan. Further to this, major fan sales happened in 2002- than 21 crore LED lights were distributed in the nation which 2006. This will lead to strong replacement demand as life brought about savings of ` 11,000 crore for the buyers span of the fan is 10-15 years. with reduction in the electricity bills. The Government Increasing use of plastic money has reduced the prices of LED bulbs to encourage the affordability of the less power consuming lights. Moving The growing use of ‘plastic money’ i.e. credit and debit IRUZDUG 8QGHU 'RPHVWLF (IͤFLHQF\ /LJKWLQJ 3URJUDP WKH cards has resulted in an increased spending amongst the government wants to replace all the 77-crore conventional consumers thereby fuelling the demand in the durables bulb sold in India with LED bulb. sector. With the acceptance of plastic money by almost all the retailers in the organised segment, the number Organised sector growth of outstanding plastic cards in the country is on a rise. Improved GST collection growth is an evident proof that the The incentives such as cash-back offer or discounts on government has been successful in the formalisation of the selected sales linked to the plastic money have lured the economy. This is adding up to the growth in lighting, fans Indian consumer to experience the pleasure of ‘cashless and home appliances space for organised sector, as the shopping’. Also, with year round discounts on e-commerce, price differential with the unorganised segment is gradually reduced tax rates and advancements in technology at reducing. lower costs, demand is further expected to get a boost. Rising disposable income and easy access to credit Outlook Rising Disposable income and easy access to credit For Surya Roshni, customer experience encompasses every influences consumer’s buying decision. Lenders’ kiosks aspect of a company’s offering— be it product, innovation, have been set up in almost every electronic outlet in India reach, quality, brand, packaging and reliability. With strong

Management Discussion And Analysis 43 foothold in rural and semi urban areas, the Company Location Advantage will look forward to accelerate growth by introducing Bahadurgarh Proximity to adjacent more value-added premium range of LED Down-lighters, markets of North India, Battens, Lamps, Street Lights, Fittings and other decorative largely to the auto- luminaires. Besides, it will leverage the technology to deliver components Segment HIͤFLHQWVPDUWOLJKWLQJSURGXFWVZKLFKZLOOGULYHQRYHOW\WR an indispensable daily companion through smart control Anjar Proximity to ports devices. Hindupur Proximity to South Indian market Gwalior Proximity to UP, Section 4 MP, Rajasthan and Chhattisgarh Competitiveness Quality: 7KH &RPSDQ\ KDV DFTXLUHG TXDOLW\ FHUWLͤFDWLRQV Brand: Surya Roshni has established its reputation as from the leading international agencies and has one of the most reliable and credible brands of India as consistently built a track record of good quality outcome, well as worldwide markets. The ‘Prakash Surya’ brand best after sales services and healthy client relations. With for the Steel Pipes and Strips segment goes synonymous ISO 9002:2008, ISO 14001:2004 & OHSAS18001:2007 with quality and robustness. While ‘Surya’ brand caters accreditations added to its repertoire, the Company stands to lighting and customer durables segment, that has tall on its promise to deliver environment friendly and gradually captured the consumers’ mindshare. Post GST quality items. implementation there has been a strong emphasis on the organised segment. Besides this, the Company has been Strong Distribution network (Lighting and Consumer consistently spending on its brand visibility by means of Durables): The Company enjoys a Pan-India presence advertisements, hoardings and team jersey sponsorship for its products through its wide network of over 2,500 for Rajasthan Royals in the recently concluded IPL 2019. distributors and 2,50,000 country wide retailers. This allows the Company to penetrate deeper into the Indian Localisation: To become a manufacturing nation, it is markets, including the rural areas and enhance its market important for India to encourage localised production. With share. Government’s ‘Make in India’ initiative, there has been a strong boost to the domestic made products. Surya Roshni Raw Materials: The Company sources its raw material from VWDQGVWREHQHͤWGLUHFWO\RZLQJWRLWVUHSXWDWLRQDQGVWURQJ reputed quality vendors like SAIL, JSW, Hindustan Zinc, manufacturing forte in delivering world-class products Tata Steel and Essar Steel. The Company also imports HR across both its business segments. Coils in super EDD grade & higher elongation from Posco, Angang, Sngang and Zaporzhstal, as per the requirements Locational advantage (Steel Pipes): The Company enjoys from the client. locational advantage with its plant strategically located near ports, national highway and across PAN India which will save the logistic cost for the Company. Also, it will ensure quicker delivery of products to the customers in the nearby vicinity.

3LPE coated pipes at Anjar Plant, Gujarat Spiral Pipes at Anjar Plant, Gujarat

44 ANNUAL REPORT 2018-19 Key Financial Ratios Standalone Consolidated

Particulars 2018 - 19 2017 - 18 2018 - 19 OVERVIEW CORPORATE Debtors Turnover (Days)$ 54 52 54 Inventory Turnover 52 60 52 (Days)$$ Interest Coverage Ratio & 3.27 3.31 3.27 Current Ratio* 1.33 1.33 1.33 Debt Equity Ratio** 1.03 1.05 1.03 2SHUDWLQJSURͤWPDUJLQ 6.22% 7.02% 6.23% STATUTORY REPORTS REPORTS STATUTORY (%) # 1HW3URͤWSURͤWPDUJLQ  2.02% 2.16% 2.02% Dealer conference at Dubai Return on Net Worth @ 10.99% 10.81% 10.99% $ Debtors (including unbilled revenue and non current receivables) /

Experiences: 7KH &RPSDQ\̵V PDQDJHPHQW KDV RYHU IRXU 5HYHQXHIURPRSHUDWLRQV $$,QYHQWRU\ 5HYHQXHIURPRSHUDWLRQV   GHFDGHVRIH[SHULHQFHLQWKH6WHHO3LSH,QGXVWU\DQGQHDUO\ & Interest (Finance cost) / EBIDTA WKUHHGHFDGHVRIH[SHULHQFHLQWKH/LJKWLQJLQGXVWU\WKXV *&XUUHQW$VVHWV&XUUHQW/LDELOLWLHV LQFOXGLQJ&XUUHQWPDWXULW\RI FINANCIAL SECTION EULQJLQJ LQ WKH QHFHVVDU\ H[SHULHQFH DQG H[SHUWLVH WKDW ORQJWHUPERUURZLQJV     GULYHVWKHIXWXUHYLVLRQRIWKH&RPSDQ\ ** 'HEW :RUNLQJFDSLWDO/RQJ7HUP'HEWVLQFOXGLQJ&XUUHQW PDWXULW\RIORQJWHUPORDQV (TXLW\   #2SHUDWLQJ SURͤW H[FOXGLQJ RWKHU LQFRPH   5HYHQXH IURP operation 6HFWLRQ @3URͤWIRUWKH\HDU$verage Net Worth 7KHUHDUHQRVLJQLͤFDQWFKDQJHVLQWKHNH\ͤQDQFLDOUDWLRV Financial Review DQG UHWXUQ RQ 1HW ZRUWK DV FRPSDUHG WR LPPHGLDWHO\ (` in crore) SUHYLRXVͤQDQFLDO\HDU Standalone Consolidated 7KH RYHUDOO SHUIRUPDQFH LV WKH UHVXOW RI RSHUDWLRQDO Particulars 2018 - 19 2017 - 18 2018 - 19 H[FHOOHQFHLQERWKWKHVHJPHQWVZKLFKDOVRLPSURYHG52&( 5HYHQXHIURP2SHUDWLRQV 5,977.04 5,011.76 5,975.04 and ROE. 2WKHU,QFRPH 4.11 2.66 4.11 1RWH  &RQVROLGDWHG ͤJXUHV DQG UDWLRV RI SUHYLRXV \HDU DUH QRW Total Revenue 5,981.15 5,014.42 5,979.15 DSSOLFDEOH VLQFH WKH VROH VXEVLGLDU\ ZDV LQFRUSRUDWHG RQ VW EBITDA 376.16 348.59 376.07 -DQXDU\ Finance costs 115.07 105.16 115.08 &DVK3URͤW 261.09 243.43 260.99 Credit Ratings: 7KH&RPSDQ\̵VFUHGLWUDWLQJKDVLPSURYHG Depreciation and 88.51 87.31 88.51 FRQVLVWHQWO\RYHUWKHSDVWIHZ\HDUVDQGDWSUHVHQWKDV$ DPRUWLVDWLRQH[SHQVHV UDWLQJIRUORQJWHUPEDQNIDFLOLWLHV7KH&3UDWLQJRIWKH 1HW3URͤW%HIRUH7D[ 172.58 156.12 172.48 FRPSDQ\ $62 UHIOHFWVUHODWLYHO\VWURQJHUFUHGLWTXDOLW\ 7D[([SHQVHV 51.70 48.08 51.67 DQGKLJKHUGHJUHHRIVDIHW\UHJDUGLQJWLPHO\SD\PHQWRI 1HW3URͤW$IWHU7D[ 120.88 108.04 120.81 ͤQDQFLDOREOLJDWLRQV 2WKHU&RPSUHKHQVLYH (3.15) (3.72) (3.15) ,QFRPH 7RWDO&RPSUHKHQVLYH 117.73 104.32 117.66 ,QFRPH 6HFWLRQ (36 22.22 19.86 22.20 7KH &RPSDQ\ PDLQWDLQHG LWV OHDGHUVKLS LQ WKH 5LVN0DQDJHPHQW PDQXIDFWXULQJ RI (5: *, 6WHHO 3LSHV  6WULSV DQG /LNH DQ\ RWKHU EXVLQHVV RUJDQLVDWLRQ WKH &RPSDQ\ LV continued to be a strong contender in the Lighting industry. H[SRVHG WR LQWHUQDO DV ZHOO DV H[WHUQDO ULVNV FDWHJRULVHG ,QWKHͤVFDO\HDUXQGHUUHYLHZ LQWR RSHUDWLRQDO ͤQDQFLDO UHJXODWRU\ HWF 7KH &RPSDQ\̵V  7KHUHYHQXHIURPWKH&RPSDQ\̵VRSHUDWLRQVUHJLVWHUHG UREXVW5LVN0DQDJHPHQW3ROLF\LVDGRSWHGWREXLOGDVWURQJ DQ LQFUHDVH RI  DQG ZDV UHSRUWHG DW ` 5,977.04 PLWLJDWLRQ QHWZRUN 7KH NH\ REMHFWLYH RI WKH SROLF\ LV WR FURUH DV FRPSDUHG WR ` 5,011.76 crore in the previous HQVXUH VXVWDLQDEOH EXVLQHVV JURZWK ZLWK VWDELOLW\ DQG WR year. SURPRWHDQXSEHDWDSSURDFKWRZDUGVULVNPDQDJHPHQWDQG PLWLJDWLRQ7KHNH\REMHFWLYHVLQFOXGH EBITDA increased 7.90% to ` FURUHDVFRPSDUHG  ,GHQWLͤFDWLRQ RI WKH FXUUHQW DQG IXWXUH PDWHULDO ULVN to ` 348.59 crore in the previous year H[SRVXUHV RI WKH &RPSDQ\ DQG HQVXUH WKH\ DUH  3URͤWEHIRUHWD[LQFUHDVHGWR` 172.58 crore as DSSURSULDWHO\PLWLJDWHGPLQLPLVHGDQGPDQDJHG FRPSDUHGWR` 156.12 crore in the previous year Protecting brand value through strategic control and  3URͤW DIWHU WD[ LQFUHDVHG  WR ` 120.88 crore as operational policies FRPSDUHGWR` 108.04 crore in the previous year  (VWDEOLVKLQJ IUDPHZRUN IRU WKH &RPSDQ\̵V ULVN

Management Discussion And Analysis 45 management process and to ensure company-wide c. assignment of responsibilities, implementation d. development of mitigation plans which create value for Ensuring systematic and uniform assessment of risks business and related to different functions of the Company e. monitoring and reporting. wherever applicable, through the adoption of best The Board of the Company periodically reviews and practices evaluates the risk management system of the Company so The Company has laid down a strong foundation for a that the management controls the risks through a properly successful risk management process. The key roles and GHͤQHG QHWZRUN 7KH +HDG RI WKH 'HSDUWPHQWV VKDOO EH responsibilities around major business processes are responsible for implementation of the risk management assigned to process owners. The major steps in the Risk system as may be applicable to their respective areas of framework include: functioning and report to the Board and Audit Committee. DLGHQWLͤFDWLRQ RI ULVNV XQGHU YDULRXV FDWHJRULHV OLNH No risks threatening the existence of the organisation RSHUDWLRQDO ͤQDQFLDO UHJXODWRU\ WHFKQRORJLFDO DQG KDYHEHHQLGHQWLͤHG+RZHYHUWKHUHDUHRWKHUULVNVDJDLQVW related to human resources which adequate mitigation plans are prepared. Following b. assessment of risks in terms of severity of impact and are some risks and their mitigation measures: likelihood of occurrence, RISK TYPE RISK DEFINITION RISK MITIGATION Technology The ever-evolving technology The Company makes all efforts in innovating and staying Risk with continuous updation may abreast with the best technological know how and development lead to product obsolescence, if of new products. The Company has state-of-the-art R&D not addressed regularly. facilities in Lighting segment. In Steel business, the experienced team of technical staff takes care of development of products. Regular updation takes place in both businesses to achieve best quality at competitive costing. Financial Risk The policy rates have started As the credit rating of the Company has improved consistently showing increasing trend in view over the last three years, the impact will be restricted. The of inflationary pressures, which &RPSDQ\KDVDOZD\VEHHQH[SORULQJFKHDSHUͤQDQFLDOSURGXFWV PD\LPSDFWSURͤWDELOLW\ like commercial papers, WCDL, Export Packing Credit, Foreign Currency Loan at lower spread (Fully Hedged), to keep the cost of funds to minimum level. Regulatory Non-compliance to stringent The Company strictly complies with all statutes applicable to Risk regulatory and environment its operations. There are trained staff members entrusted with norms may result in liabilities and regulatory responsibilities which are monitored and reported at loss of brand reputation. the highest levels. The Company also uses services of legal and regulatory consultants. Forex Fluctuation The Company deals in exports To counter exposure to foreign exchange volatility, the Company Risk / imports of products in has formulated foreign exchange hedging policy to protect the business and borrowings which trading and manufacturing margins by 100% hedging against are subjected to currency forex. fluctuations. Human Resources The Company needs adequate The Company has developed and acquired trained manpower Risk talent to run the business. to run its operations. The company periodically reviews its There is a risk labour unrest senior management team to ensure continuity in leadership. and maintaining good industrial The HR policies ensure to attract and retain the best talents relations. and maintain attrition at low level. The industrial relations are managed through incentivising, training and counselling of labour. The Company Board has also approved ESOP scheme. Commodity Price Company sources several In order to manage the Commodity Price Risk, company has Risk commodities for use as inputs a comprehensive risk assessment framework to manage the in its businesses and their price risks arising out of the inherent price volatility associated with fluctuations may lead to losses. commodities. This includes robust mechanisms for monitoring market dynamics on an ongoing basis towards making informed sourcing decisions and continuous tracking of positions. )XUWKHUWKH&RPSDQ\KDVLQSODFHDPHFKDQLVPZKHUHE\WKH$XGLW&RPPLWWHHRIWKH%RDUGGHͤQHVULVNH[SRVXUHVPHDVXULQJ WKHPDQGGHͤQLQJDSSURSULDWHDFWLRQVWRFRQWUROWKHULVN 46 ANNUAL REPORT 2018-19 has embarked on several human resource initiatives to Section 7 enhance organisational productivity and that of each individual. It has also invested a high emphasis on driving CORPORATE OVERVIEW CORPORATE Internal control systems an effective and transparent performance culture. Top performers and achievers are recognised in the ‘Surya The Company has a proper and adequate system of Parivar’ for their exemplary performance in the rewards internal control system commensurate with the size and and recognition program. nature of business. It is an integral component of the The Company continued to maintain amicable industrial Company’s corporate governance. The Company has in relations by focusing on increased worker-level place a strong and independent Internal Audit Department REPORTS STATUTORY engagement through formal and informal communication responsible for assessing and improving the effectiveness DQGWUDLQLQJIRUXPV$VRQVW0DUFKWKH&RPSDQ\ of internal control and governance. Internal Audit focuses KDGGLUHFWHPSOR\HHVRQLWVSD\UROO on operational as well as systems audit. The function is also strengthened by hiring the expert professionals. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit 6HFWLRQ

Committee. Extensive programme of risk and transaction FINANCIAL SECTION based internal audits cover all divisions, plants, branches Corporate Social Responsibility and the different areas of operations. The Audit Committee The CSR movement in Surya Roshni is based on the of the Board is updated periodically on major internal audit core belief of compliance of social and ecological observations, compliances with accounting standards, risk responsibilities. Corporate social responsibility is basically management and control systems. The Audit Committee a continuous ongoing process whereby the Company assesses the adequacy and effectiveness of inputs given by the internal audit and suggests improvement for contributes to the betterment of society and a cleaner and strengthening the control systems. Further, the Company greener environment. has an extensive budgetary control system, which is The key objectives of Surya Roshni CSR policy are mentioned regularly examined by the management. Surya Roshni in Annexure V to Board’s Report. To attain the Company’s KDV ZHOO GHͤQHG 0DQDJHPHQW ,QIRUPDWLRQ 6\VWHP ZLWK Corporate Social Responsibility objectives in a professional clear organisational structures and authorisation levels for and integrated manner, the Company discharged its EXVLQHVV WUDQVDFWLRQV 7KH &RPSDQ\̵V LQWHUQDO ͤQDQFLDO responsibilities through the Surya Foundation. In pursuance controls are adequate and operate effectively which of this objective, the Foundation is working in the areas of HQVXUHV RUGHUO\ DQG HIͤFLHQW FRQGXFW RI LWV EXVLQHVV Adarsh Gram Yojana, development of preventive and cost including adherence to its policies, safeguard its assets, effective health systems of naturopathy and yoga and Ideal prevent and detect frauds & errors, maintain accuracy and Village Projects with emphasis on Literacy and Personality completeness of its accounting records and further enable Development of Youth. LWLQWKHWLPHO\SUHSDUDWLRQRIUHOLDEOHͤQDQFLDOLQIRUPDWLRQ During the year under review, the Company on consolidated 6XU\DDOVRXQGHUWDNHVH[WHUQDODXGLWIRUHIͤFLHQWDXGLWDQG basis spent ` FURUHRQFRUSRUDWHVRFLDODFWLYLWLHVEHLQJ control for its branches and depots and also for specialised WZRSHUFHQWRIWKHDYHUDJHQHWSURͤWVRIWKHFRPSDQ\PDGH functions like taxation. GXULQJWKHWKUHHLPPHGLDWHO\SUHFHGLQJͤQDQFLDO\HDUV Section 8 Cautionary statement This report contains forward-looking statements about Material developments in human WKHEXVLQHVVͤQDQFLDOSHUIRUPDQFHVNLOOVDQGSURVSHFWV of the Company. Statements about the plans, intentions, resources/industrial relations expectations, beliefs, estimates, predictions or similar Surya Roshni recognises the importance of its human expressions for future are forward-looking statements. capital and continues to focus on holistic human resource Forward-looking statements should be viewed in the GHYHORSPHQW 7KH&RPSDQ\ ͤUPO\EHOLHYHVWKDWHQJDJHG context of many risk issues and events that could cause the DQGFRPSHWHQWHPSOR\HHVDUHFULWLFDOWRIXOͤOLWVEXVLQHVV actual performance to be different from that contemplated objectives and hence, all HR initiatives are aimed at LQWKH'LUHFWRUV̵5HSRUWDQG0DQDJHPHQW'LVFXVVLRQVDQG creating alignment and stimulation so that employees can Analysis Report, including, but not limited to, the impact IXOͤOWKHLUSRWHQWLDODQGGHOLYHUYDOXHWRWKH&RPSDQ\ of changes in oil, steel prices worldwide, technological The Company continuously aims to offer career obsolescence and domestic, economic and political advancement and growth opportunities to its people. The conditions. The Company cannot assure that the outcome employee friendly HR policies create an environment of of these forward-looking statements will be realised. The learning and development, while promoting internal talent Company disclaims any duty to update the information and developing cross-functional expertise. The Company given in the aforesaid reports.

Management Discussion And Analysis 47 Board’s Report

Board’s Report 49 Corporate Governance Report 84

Financial Section

Standalone 107 Consolidated 150

48 ANNUAL REPORT 2018-19 BOARD’S REPORT CORPORATE OVERVIEW CORPORATE

To the Members, 9HKLFOH 639  $V WKH FRPSDQ\ KDV EHHQ LQFRUSRUDWHG GXULQJWKH\HDUXQGHUUHYLHZSUHYLRXV\HDU&RQVROLGDWHG The Board of Directors hereby submits the Forty Sixth ͤJXUHVDUHQRWDSSOLFDEOH+RZHYHUUHVSHFWLYHVWDQGDORQH report of the business and operations of the Company along ͤJXUHVPD\EHUHIHUUHGIRUWKHVDPH ZLWKWKHDXGLWHGͤQDQFLDOVWDWHPHQWVIRUWKHͤQDQFLDO\HDU

HQGHG0DUFK7KH&RQVROLGDWHGSHUIRUPDQFHRI ,QWKHͤVFDO\HDUXQGHUUHYLHZWKHUHYHQXHIURPRSHUDWLRQV REPORTS STATUTORY the Company and its wholly –owned subsidiary has been of the Group is `(%,7'$WR`FURUH3URͤW UHIHUUHGWRZKHUHYHUUHTXLUHG before tax stands at `  FURUH DQG 3URͤW DIWHU WD[ stood at `FURUH 1 RESULTS OF OPERATIONS AND STATE OF AFFAIRS: STEEL PIPES & STRIPS SEGMENT (` in crore) Steel Industry has witnessed stupendous performance during Standalone Consolidated FINANCIAL SECTION For the For the WKH\HDUZRUOGZLGH,Q,QGLD6WHHOFRQVXPSWLRQVLJQLͤFDQWO\ year ended year ended depends on the overall performance of the economy (GDP) March 31, March 31, DQGPRUHVSHFLͤFDOO\RQLQYHVWPHQWVPDGHLQͤ[HGDVVHWV Particulars 2019 2018 2019 VXFK DV KRXVLQJ LQIUDVWUXFWXUH OLNH UDLOZD\V SRUWV URDGV Revenue from DLUSRUWVHWF$QWLFLSDWHGLQFUHDVHLQ*'3ZLOOUHVXOWLQKLJKHU Operations    Other Income    FRQVXPSWLRQDQGGHPDQGRIVWHHOSURGXFWV Total Revenue    Surya being the largest exporter of ERW pipes and largest EBITDA    Finance costs    SURGXFHU RI (5: *, 3LSHV LQ ,QGLD PDQXIDFWXUHV (5: &DVK3URͤW    6WHHO SLSHV *, %ODFN +ROORZ VHFWLRQ  $3,  :HOGHG Depreciation and    SLSHV 6SLUDO /3( &RDWHG SLSHV  &5 VWULSV KDYLQJ ZLGH amortisation expenses DSSOLFDWLRQV RI LWV SURGXFWV LQ DJULFXOWXUH LQIUDVWUXFWXUH 1HW3URͤW%HIRUH7D[    RLO JDVDQGFRQVWUXFWLRQVHFWRUV&RPSDQ\SURGXFWVDUH Tax Expenses    DSSURYHG E\ $3, $PHULFDQ 3HWUROHXP ,QVWLWXWH  IRU 2LO  1HW3URͤW$IWHU7D[    *DVVHFWRU'XULQJWKH\HDUWKHVWHSVWDNHQE\WKHFRPSDQ\ Other Comprehensive Income    for new products development has further strengthened Total Comprehensive its operations resulted into increased volume of steel Income    SLSHV 'XULQJ WKH \HDU XQGHU UHYLHZ WKH JURVV UHYHQXH EPS    from operations of the Segment stood at `FURUH as compared to `  FURUH ODVW \HDU UHJLVWHUHG DQ Standalone Financial Highlights: LQFUHDVH RI  YROXPH LQFUHDVHG E\   DQG 3URͤW ,QWKHͤVFDO\HDUXQGHUUHYLHZWKHUHYHQXHIURPRSHUDWLRQV EHIRUHWD[ 3%7 LQFUHDVHGE\WR` FURUHIURP ` ` of the Company is   FURUH DV FRPSDUHG WR ` FURUHIURPWKHFRUUHVSRQGLQJSHULRGODVW\HDU  FURUH ODVW \HDU UHJLVWHU DQ LQFUHDVH RI  EBITDA to `  FURUH IURP  FURUH UHJLVWHU DQ The better performance of the segment is derived on account LQFUHDVH RI  3URͤW EHIRUH WD[ VWDQGV DW `  RI+LQGXSXUSODQWDW$36HHLQJWKHDZHVRPHUHVSRQVHLQ crore as compared to ` FURUHODVW\HDUUHJLVWHUHG 6RXWK,QGLDQ0DUNHWVWKHFRPSDQ\KDVIXUWKHUHQKDQFHG DQLQFUHDVHRIDQG3URͤWDIWHUWD[VWRRGDW` WKH LQVWDOOHG FDSDFLW\ RI (5: 6WHHO 3LSH  6WULSV 8QLW DW crore as compared to `FURUHODVW\HDUUHJLVWHUHGDQ +LQGXSXU$3E\07SHUDQQXPLHIURP LQFUHDVHRI7KHRYHUDOOSHUIRUPDQFHLVWKHUHVXOW 073$WR073$GXULQJWKH\HDUXQGHUUHYLHZ RI2SHUDWLRQDOH[FHOOHQFHKLJKHUUHWXUQVZLWKHIͤFLHQF\LQ The segment has gained enormous strength with the start PDQXIDFWXULQJ FRVW LQ ERWK WKH VHJPHQWV ZKLFK IXUWKHU of Commercial production at its newly set-up 3LPE Coated LPSURYHG52&(DQG52( Pipe Manufacturing Unit at Anjar-Kutchh (Gujarat) by Consolidated Financial Highlights: higher capacity utilisation of its existing ERW and Spiral The Sole wholly-owned subsidiary company namely SURYA $3, 3LSH IDFLOLWLHV VDYLQJV LQ ORJLVWLF  FRDWLQJ FKDUJHV ROSHNI LED LIGHTING PROJECTS LIMITED has been leading to creation of a larger and stronger steel pipes LQFRUSRUDWHG RQ VW -DQXDU\  DV 6SHFLDO 3XUSRVH EXVLQHVVRIWKHFRPSDQ\DWHFRQRP\RIVFDOH

Board’s Report 49 ANJAR (KUTCH) The wide acceptance of Company’s steel pipe products The merger of unit (e-SGSTL) with the Company resulted DUH HYLGHQW ZLWK LWV H[SDQGLQJ PDUNHW VKDUH DQG EUDQG in economy of scale and also open additional avenues SUHIHUHQFH $V ZRUOGFODVV TXDOLW\ SURGXFWV RI WKH RI JURZWK LQ WHUPV RI YROXPH QHZ SURGXFWV LPSURYHG &RPSDQ\ DUH EHLQJ VROG E\  GHDOHUV DQG  SURͤWDELOLW\ DQG HGJH RI GRLQJ EXVLQHVV ,W DOVR OHDGV WR retailers across India and are also being exported to more FRQVROLGDWLRQ RI VWHHO SLSHV EXVLQHVV RSWLPDO XWLOLVDWLRQ WKDQFRXQWULHVDFURVVWKHJOREHQDPHO\8$($XVWUDOLD (J\SW(8&DQDGD86HWF RIUHVRXUFHVDQGEULQJLQJWKHEHQHͤWVRIRYHUDOOV\QHUJ\ FRPPRQ PDQDJHPHQW UHGXFHG ͤQDQFH FRVW LPSURYHG Upbeat by Government policies at the centre and in FUHGLWUDWLQJDQGRWKHUEHQHͤWRILQWHJUDWLRQ SDUWLFXODU LWV UHFHQW 1DWLRQDO 6WHHO 3ROLF\  ZLOO further boost sentiments of steel pipe sector in a big 7KH8QLWZKLFKLVHVWDEOLVKHGLQWKH\HDURQ$FUHV ZD\*RYHUQPHQWSURJUDPVVXFKDV'HYHORSPHQWRI are in close proximity to two major Kandla and Mundra 6PDUW&LWLHV6NLOO,QGLD5HQHZDODQGUHYLYDORIURDGUDLO SRUWJLYHVVWUDWHJLFDGYDQWDJHLQH[SRUWVDQGLPSRUWV7KH infrastructure projects will further provide a big boost to XQLWKDVVXFFHVVIXOO\PDQXIDFWXUHG$3,/;̰36/ WKH&RPSDQ\̵V6WHHO6HJPHQWLQWLPHVWRFRPH *UDGHSLSHIRU2LO *DV,QGXVWU\ LIGHTING & CONSUMER DURABLES SEGMENT The Company has established world’s one of the best The segment registered much improved performance on /3(&RDWLQJIDFLOLW\KDYLQJODWHVWWHFKQRORJ\IURP6HOPHU account of increasing sales of LED lights leading to an Netherland at its unit and has commenced Commercial LQFUHDVHRILQ5HYHQXHIURP2SHUDWLRQV QHWRIWD[HV  3URGXFWLRQ RQ 1RYHPEHU   IRU /3( &RDWHG 3LSH to ` FURUHIURP`FURUH(%,7'$LQFUHDVHGE\ 0DQXIDFWXULQJ 8QLW ZLWK DQ LQVWDOOHG FDSDFLW\ RI  WR`FURUHIURP`FURUHDQG3URͤW%HIRUH 6T PWU IRU ([WHUQDO DQG  6T PWU ,QWHUQDO WD[ 3%7 LQFUHDVHGE\WR`FURUHIURP`  &RDWLQJIRUSLSHVUDQJLQJIURP̹WR̹GLDPHWHU:LWKWKH FURUHGXULQJWKHFRUUHVSRQGLQJODVW\HDU)XUWKHUIRUWKH\HDU FRPPHQFHPHQW RI WKH DIRUHVDLG XQLW WKH &RPSDQ\ ZLOO EH XQGHUUHYLHZFRQVROLGDWHGJURVVUHYHQXHIURPRSHUDWLRQVRI EHQHͤWWHGE\KLJKHUFDSDFLW\XWLOLVDWLRQRILWVH[LVWLQJ6SLUDO the divisions stood at `FURUHDQG3URͤWEHIRUHWD[ DQG$3,3LSHVIDFLOLWLHVDFKLHYHVDYLQJVLQORJLVWLF FRDWLQJ (PBT) to `FURUH charges which will further strengthen the presence of the Company in the Domestic as well as Global 3LPE Coated Steel Strong growth of 19% registered in Q4FY19 as compared 3LSHV6HJPHQWIRU2LO*DV LQFOXGLQJ&*' DQG,QIUDVWUXFWXUH to Q4FY18. LED Lighting registered 35% growth with 6HFWRUOHDGLQJWRLPSURYHPHQWLQWRSDQGERWWRPOLQHRIWKH FRQWLQXRXVO\ LQFUHDVLQJ VKDUH LQ RYHUDOO UHYHQXH &RPSDQ\̵V6WHHO3LSH 6WULSV6HJPHQW FRQVWLWXWHV  RI OLJKWLQJ UHYHQXH GXULQJ 4)< DV FRPSDUHGWRGXULQJ4)< &OLPELQJWKHODGGHURIVXFFHVVYHU\IDVWWKHFRPSDQ\KDV received during the current year an order of `FURUH 5DQNHGDVRQHRIWKHPRVWUHVSHFWIXODQGWUXVWHGEUDQG *67([WUD IURP,2&/IRU$3,*UDGHSLSHV)XUWKHULQWKH IRU OLJKWLQJ SURGXFW LQ ,QGLD 6XU\D PDQXIDFWXUH DOO WKH ODVWUHSRUWHGͤQDQFLDO\HDU&RPSDQ\KDVUHFHLYHGRUGHUV /(' SURGXFWV LQKRXVH EDFNHG E\ VWUDWHJLF PDUNHWLQJ aggregate amounted to `FURUHIRUVXSSO\RI/3( initiatives and strong trade channel followed by orders of &RDWHG$3,OLQHSLSHVIRU&*' &1*DQG(5:SLSHVIURP 6WUHHWOLJKWVUHFHLYHGIURP((6/&RPSDQ\SRVWHGDJURZWK Government and State institutions and the same are under RILQ/('OLJKWVGXULQJWKH\HDU7RIXUWKHUDFFHOHUDWH execution as per schedule WKH JURZWK WKH &RPSDQ\ KDV LQWURGXFHG PRUH SUHPLXP UDQJHRI/(''RZQOLJKWHUV%DWWHQV/DPSV6WUHHW/LJKWV The Company continued to maintain its supremacy in the )ORRG/LJKWVRWKHUGHFRUDWLYHOXPLQDLUHVDQGZLOOFRQWLQXH GRPHVWLF PDUNHW DQG LV QRZ DW SDU ZLWK DOO WKH OHDGLQJ to participate aggressively in the tendering of Street Lights global pipe manufacturers in terms of supplying high RUGHUVRI((6/ TXDOLW\RI$3,OLQHSLSHVZLWKLQWHUQDO H[WHUQDOFRDWLQJ 'LIIHUHQW W\SHV RI FRDWLQJ OLNH /3( /33 )%( VLQJOH The Company feels immense pleasure by successfully  GXDO OD\HU  DQG LQWHUQDO HSR[\ FRDWLQJ DUH FDUULHG WR completing the LED Lighting installation at ‘Kumbh safeguard the pipe from rusting and also increases the life 0HOD̵ZLWKVSHFLͤFUHFRJQLWLRQ E\WKHPHGLD$JJUHVVLYH DGYHUWLVHPHQWV VSRQVRUVKLSV DQG VDOHV SURPRWLRQ RIWKHSLSH'LIIHUHQWRWKHUSLSHVVSHFLͤFDWLRQVVXFKDV(1 DFWLYLWLHVKDVLPSURYHGWKH%UDQGYLVLELOLW\DFURVV,QGLD %6$8675$/,$ $675$*5$'(DUHDOVRPDQXIDFWXUHGE\ WKH&RPSDQ\ 7KH&RPSDQ\EHFDPHWKHͤUVWOLJKWLQJFRPSDQ\LQ,QGLD WR LQWURGXFH HQHUJ\HIͤFLHQW OLJKWLQJ VROXWLRQV 7RGD\ %KXM3ODQWEHLQJVLWXDWHGDWFRDVWDOORFDWLRQZLWKQHDUE\ 6XU\D UDQNHG DV RQH RI WKH PRVW UHVSHFWHG DQG WUXVWHG WZR PDMRU SRUWV H[SRUWV  RI LWV SURGXFWLRQ DV LW LV EUDQGLQ,QGLDIRULWV/LJKWLQJSURGXFWV6XU\DRIIHUVZLGH KDYLQJVWUDWHJLFDGYDQWDJHLQH[SRUWVDQGLPSRUWV UDQJHRI/('SURGXFWVUDQJLQJIURPZWRZ/DPSV

50 ANNUAL REPORT 2018-19 'RZQOLJKWHUV /(' 3DQHOV /(' 6WUHHW OLJKWV  /(' +L RUGHUV DUH LQ WKH SLSHOLQH IRU WKH QH[W WZR \HDUV̵ WLPH

ED\V IRU ,QGRRU &RPPHUFLDO DQG ,QGXVWULDO /LJKWLQJ /LNHWKLVDERXWODNKWRQQHVRIODUJHGLDSLSHVUHTXLUHG OVERVIEW CORPORATE VHFWRUVZKLFKDUHSURGXFHGLQKRXVHDIWHUH[WHQVLYH5 ' for connecting rivers for water transportation in the State DWLWV1RLGDEDVHG5 '&HQWUHWRVXLW,QGLDQFRQGLWLRQV of Gujarat alone which is also to be supplied during next 0DQ\QHZSURGXFWVVXFKDV+LJK%HDP$QJOH/('/DPSV RQH \HDU WLPH 5LYHU ZDWHU WUDQVSRUWDWLRQ V\VWHP KDV &RORU&KDQJH/('/DPSV1HZ5DQJH'RZQOLJKWHUV/(' HQRUPRXVVFRSHDOORYHU,QGLD 7RUFKZLWK'U\&HOO%DWWHU\5HFKDUJHDEOHHWFZLOODOVREH introduced in near future to cater to the growing demand Government of India through Oil and Gas Companies STATUTORY REPORTS REPORTS STATUTORY RI WKH FXVWRPHUV 7KLV JLYHV 6XU\D DQ HGJH RYHU LWV are tendering aggressively for laying new pipe lines FRPSHWLWRUV IRU WUDQVSRUWDWLRQ RI 2LO DQG *DV DFFRUGLQJO\ VL]HDEOH investment opportunity is anticipated for the expansion of 7KH/('SURGXFWV DGGDJUHDWDPRXQWRIFRORXU FODVV $3,FURVVFRXQWU\OLQH,QRUGHUWRLQFUHDVHGRPHVWLFRXWSXW as well as complimenting the existing range of company DQGWRFXWLPSRUWV,QGLDQ*RYHUQPHQWKDVRIIHUHGIXUWKHU SURGXFWVZKLFKLQFOXGH&)/7XEH/LJKW*/6/XPLQDULHV RLODQGJDVDQG&%0EORFNVFRYHULQJRYHUVTNP DQG $FFHVVRULHV +LJK 0DVW /LJKWLQJ 6\VWHPV /LJKWLQJ for bidding in the third round of Open Acreage Licensing FINANCIAL SECTION 3ROHVHWF 3ROLF\ 2$/3 :LWKWKHODXQFKRIHQWLUHELGGLQJVRIDULQ WKUHHURXQGVPRUHWKDQVTNPRIDUHDKDVQRZ The Company’s Lighting and Consumer Durables Segment EHHQPDGHDYDLODEOHIRUH[SORUDWLRQ is not limited to Lighting Products only but also includes )DQV +RPH $SSOLDQFH DQG &RQVXPHU 'XUDEOHV LQ LWV 7KH&RPSDQ\ZLOOUHDSEHQHͤWVRIWKHVDPHDV/3(&RDWLQJ VHJPHQW7KHDFFHSWDQFHRIWKHEUDQG6XU\DIDQV+RPH Pipe manufacturing unit commenced commercial production Appliances and Consumer Durables was overwhelming ZLWKDQLQVWDOOHGFDSDFLW\RIVTXDUHPHWHUH[WHUQDO DPRQJVW GLVWULEXWRUV UHWDLOHUV DV ZHOO DV FXVWRPHUV FRDWLQJ DQG  VTXDUH PHWHU LQWHUQDO FRDWLQJ IRU 6XU\D DGGHG YDOXH DGGHG DQG SUHPLXP UDQJH RI IDQV WKHSLSHVKDYLQJGLDPHWHUEHWZHHQ̹WR̹DWLWVH[LVWLQJ VXFK DV 3ODWHG IDQV .LGV IDQV 8QGHUOLWH IDQV 9HQWXUD FDPSXVRI$QMDU%KXM *XMDUDW :LWKWKLVFRDWLQJIDFLOLWLHV 0HWDOOLFDDOOLQSUHPLXP3ODWHGͤQLVKDQGHYHQIDQVZLWK WKH&RPSDQ\̵VSUHVHQFHLQVXSSO\RISLSHVLQ2LO *DV6HFWRU /('LQPRUHWKDQGHVLJQVGXULQJWKH\HDU)XUWKHU6XU\D LQFUHDVHVZKLFKZLOODOVROHDGWRKLJKHUFDSDFLW\XWLOLVDWLRQRI YHQWXUHG LQWR 5RRP &RROHUV DQG VROG GHFHQW TXDQWLW\ $3, 6SLUDOSLSHVLQWLPHVWRFRPH WRWDOO\DJDLQVWDGYDQFHSD\PHQW India has become the global pipe manufacturing hub :LWK JRYHUQPHQW LQLWLDWLYHV OLNH EXLOGLQJ VPDUW FLWLHV SULPDULO\GXHWRWKHEHQHͤWVRILWVORZHUFRVWKLJKTXDOLW\ across India and structural shift in the lighting industry DQG JHRJUDSKLFDO DGYDQWDJHV 7KH JOREDO DFFUHGLWDWLRQV towards LEDs the company is poised to grow by leaps and DQGFHUWLͤFDWLRQVWKDWWKH,QGLDQFRPSDQLHVSRVVHVVKDYH ERXQGVLQ\HDUVWRFRPH made them preferred suppliers for many leading oil and gas companies in the world and particularly those in Middle FUTURE PROSPECTS (DVW1RUWK$PHULFDDQG(XURSH6LQFHWKHJOREDOHFRQRP\ STEEL PIPES & STRIPS SEGMENT UHWXUQHGWRVXVWDLQHGJURZWKWKHGRPHVWLFSLSHLQGXVWU\ 'HYHORSPHQWRI,QGLDLVFORVHO\OLQNHGWRWKHJURZWKRILWV LVH[SHFWHGWRDFFHOHUDWHLQWRKLJKJURZWKWUDMHFWRU\ 6WHHO,QGXVWU\6WHHOSOD\VDYLWDOUROHLQWKHGHYHORSPHQW of modern economy and consumption of steel widely Surya is the largest ERW GI pipe manufacturer and the WDNHQWREHDQLQGLFDWRURIHFRQRPLFGHYHORSPHQW,QGLD ODUJHVWH[SRUWHURI(5:SLSHVLQ,QGLD6XU\DFRQWLQXRXVO\ KDV EHFRPH WKH ZRUOG̵V QG ODUJHVW 6WHHO SURGXFHU assess the requirement of its customers and develop the VXUSDVVLQJ-DSDQ6WHHO3LSH,QGXVWU\FRQWLQXHVWRKDYHD SURGXFWV DFFRUGLQJO\ 6XU\D GHYHORSHG DQG VXSSOLHG *, VWURQJGHPDQGLQWUDGLWLRQDOVHFWRUVVXFKDVFRQVWUXFWLRQ SLSH XS WR ̹ GLD SLSH GXULQJ WKH \HDU 6XU\D KDV JRRG KRXVLQJ WUDQVSRUWDWLRQ DJULFXOWXUH ERULQJ ͤUHͤJKWLQJ SUHVHQFH LQ )LUH )LJKWLQJ $JULFXOWXUH 6HFWLRQ DQG $3, ,QIUDVWUXFWXUH2LO *DVVHFWRUDQGULYHULQWHUOLQNLQJHWF SLSHVUHTXLUHGIRULQIUDVWUXFWXUHKRXVHKROGSOXPELQJXVHV 7KHLQGXVWU\ZLOOVHUYHDVWKHEDFNERQHRILQGXVWULDOLVDWLRQ DQG2LO *DVVHFWRU RI RXU FRXQWU\ 7KH EHQHͤWV RI KDYLQJ D IXQFWLRQDO VWHHO /RRNLQJWRWKHEUDQGLPDJHRI̸3UDNDVK6XU\D̹WKHGHPDQG LQGXVWU\ ZLOO WUDQVODWH WR D IXQFWLRQDO FRXQWU\ 'UDVWLF VXSSO\VFHQDULRLQ6RXWK,QGLDQPDUNHWWKH&RPSDQ\̵V VWHSV KDYH EHHQ WDNHQ E\ WKH *RYW RI ,QGLD WR LPSURYH state of the art ERW Pipe Manufacturing Mill at Hindupur RYHUDOOVWHHOSURGXFWLRQFRQVXPSWLRQDQGH[SRUWV $3  IRU SURGXFWLRQ RI %ODFN 6HFWLRQ DQG *, SLSHV DOVR Demand of steel pipes has been increased all around VWDUWHG \LHOGLQJ UHVXOWV )XUWKHU WKH &RPSDQ\ GHULYHV WKH VHFWRUV OLNH ZDWHU WUDQVSRUWDWLRQ DJULFXOWXUH ERULQJ EHQHͤWVRIHFRQRPLHVRIVFDOHDWORZHUFDSLWDOFRVWDQG ͤUHͤJKWLQJ,QIUDVWUXFWXUHDQG2LO *DVVHFWRU*RYHUQPHQW LQFUHDVHG PDUNHW VKDUH LQ WKH SUHPLXP PDUNHW RI 6RXWK KDVDPELWLRXVSODQVWRLPSURYHQHWZRUNRI*DV RLOSLSHV ,QGLDOHDGLQJWRVDYLQJVLQORJLVWLFFRVWDQGVWUHQJWKHQLQJ OLQHV DOO RYHU ,QGLD $ERXW  ODNK WRQQHV RI $3, OLQH SLSH WKHRYHUDOO6WHHO3LSHEXVLQHVVRIWKH&RPSDQ\

Board’s Report 51 With emphasis through the National Steel Policy and operation in extreme temperatures – which ensure energy Government thrust to strengthen the agricultural and rural VDYLQJV DQG FRPHV ZLWK WKH IDFLOLWDWLRQ RI D UHPDUNDEOH HFRQRP\LQFUHDVLQJWKHFDSDFLW\RIVWHHOVHFWRUJHQHUDWLQJ OLIHVSDQ 7KH JURXS PDQXIDFWXUHV TXDOLW\ /(' SURGXFWV VRODU SRZHU ZLQG SRZHU KRXVLQJ IRU DOO HOHYDWHG WUDFNV ZLWKDZRUOGFODVVPDQXIDFWXULQJLQIUDVWUXFWXUH IRU5DLOZD\V&LW\JDVSURMHFWVLQIUDVWUXFWXUHGHYHORSPHQW The LED lamps assembly process is equipped with IRU([SRDW'XEDLDQG),)$:RUOG&XSLQ4DWDU automatic head assembly machines at Kashipur and substantial demand will be generated for the Steel Pipe *ZDOLRU 3ODQWV 7KHVH PDFKLQHV DUH GHYHORSHG LQ products and provides ample scope of growth for Steel house by competent team members with an innovative 3LSHVPDQXIDFWXULQJXQLWV DSSURDFK,WLVWKHPRVWSURGXFWLRQIULHQGO\DQGGHOLYHUWKH LIGHTING & CONSUMER DURABLES SEGMENT EHVW TXDOLW\ RI SURGXFWV 6XU\D 5RVKQL HVWDEOLVKHG 3&% The lighting Industry in India is evolving rapidly through the $VVHPEO\ 8QLW DW *ZDOLRU  .DVKLSXU SODQWV ZLWK VWDWH replacement of conventional products by LEDs driven by of-the-art automatic component insertion machines for LQFUHDVLQJJRYHUQPHQWLQLWLDWLYHVIRUHQHUJ\FRQVHUYDWLRQ ERWKW\SHVRI$[LDODQG60'FRPSRQHQWV:HKDYHDZRUOG ULVLQJFRQVXPHUDZDUHQHVVIRUHQHUJ\HIͤFLHQWSURGXFWV FODVV VHWXS KDYLQJ 6XUIDFH 0RXQW 7HFKQRORJ\ 607 $, and innovative products offered by the industry in sync PDFKLQHV RI )8-,-8.,

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RESEARCH AND DEVELOPMENT CENTRE friendly lighting products with its ability to do the best- FINANCIAL SECTION 6XU\D 5RVKQL LV DPRQJVW WKH PDUNHW OHDGHU LQ /LJKWLQJ LQFODVV UHVHDUFK GHVLJQ DQG GHYHORSPHQW DQG WKXV ,QGXVWU\ LQ ,QGLD 7KLV KDV EHHQ SRVVLEOH SDUWO\ GXH WR FRQWULEXWLQJWRZDUGV*UHHQ,QGLD the strong focus on development and introduction of new FAN DIVISION /(' SURGXFWV DQG WHFKQRORJLHV 6XU\D 7HFKQRORJ\ DQG Innovation Centre (STIC) is at the heart of this growth and Saving energy is the mantra for today as the nation has contributed immensely towards achieving the position requires power for development and energy saved is energy SUHVHQWO\HQMR\HGE\WKHFRPSDQ\ JHQHUDWHG(QHUJ\HIͤFLHQWIDQVDUHWKHRUGHURIGD\WRGD\ 7RGD\ 6XU\D LV WKH QDPH UHFNRQHG IRU HQHUJ\ HIͤFLHQW )RUWKHODVWIHZ\HDUV67,&KDVEHHQLQYROYHGLQWKHUHVHDUFK GRPHVWLFDQGFRPPHUFLDOIDQVROXWLRQPDUNHWZKLFKKDYH and development of LED Luminaires with several unique VWDUWHGLWVMRXUQH\LQIDQVGLYLVLRQͤYH\HDUVDJR DQG ͤUVWLQFODVV IHDWXUHV 67,& KDV LQYHVWHG LQ YDULRXV UHVRXUFHV UHTXLUHG IRU WKH PHFKDQLFDO HOHFWURQLFV DQG Surya Fans is one of the fastest growing brand in Indian RSWLFDO GHYHORSPHQW &RPSDQ\ H[SHULHQFHG 0HFKDQLFDO IDQV ,QGXVWU\ %HLQJ DVVRFLDWHG PHPEHU RI ,QGLD )DQV HQJLQHHUV HTXLSSHG ZLWK &$' ZRUNVWDWLRQ GHVLJQ QHZ 0DQXIDFWXUHUV$VVRFLDWLRQ ,)0$ &RPSDQ\KDVDFKLHYHG lights ensures that the lights meet the best manufacturing VDOHV  /DFV IDQV XQLWV LQ  &RPSDQ\ KDV DQGTXDOLW\VWDQGDUGV7KHUPDOPDQDJHPHQWLVGRQHXVLQJ SUHVHQFHDFURVVWKHVHJPHQWLQ'RPHVWLFFXVWRPHUV&6' thermal simulations during design stage to ensure that it –CPC and Government institutions with focus to expand LVRSWLPXPIRUWKHORQJOLIHRIWKH/('OXPLQDLUHV EXVLQHVVWKURXJK(FRPPHUFHGXULQJWKH\HDU

The Company design and develop its own electronic drivers Surya Premium Ceiling fan range offers the variety of IRU XVH LQ LWV YDVW UDQJH RI /(' OLJKWV +LJK TXDOLW\ DQG choices for customer with different colour combinations reliability of the drivers is ensured right from the design DQG XQLTXH GHFRUDWLRQ WR VXLWV WKH LQWHULRU RI KRPH VWDJH$GYDQFHGIHDWXUHVRIGULYHUVOLNHGLPPDEOHGULYHUV Development of new range is more focused towards the '$/,GULYHUVSURJUDPPDEOHGULYHUVFRXSOHGZLWKYDULRXV Premium and decorate range with few model with IOT types of sensors ensure that we remain at the forefront of enabled which will help in further growth /('WHFKQRORJ\7KHUPDOPHFKDQLFDODQGHQYLURQPHQWDO HOME APPLIANCES AND CONSUMER DURABLES WHVWVDUHSHUIRUPHGRQWKH/XPLQDLUHVGXULQJGHYHORSPHQW Surya entry in to the Small Domestic Appliances business $OONLQGVRIHOHFWULFDODQGVDIHW\WHVWVDUHDYDLODEOHDQGDUH during the last 3 years have been noteworthy and have SHUIRUPHGRQWKHSURGXFWVWRVRWKDWWKHOXPLQDLUHVNHHS FUHDWHG KLJKHU EUDQG LPDJH DQG FRQVXPHU VDWLVIDFWLRQ IXQFWLRQLQJGXULQJWKHPRVWDGYHUVHFRQGLWLRQV 7KH SURGXFWV DQG VHUYLFHV LW RIIHUV DUH XQLTXH LQQRYDWLYH STIC also houses the most advanced Photometric LQGHVLJQVXSHULRULQSURGXFWSHUIRUPDQFHDQGH[FHSWLRQDO Laboratory in India with a High speed Mirror Gonio YDOXH WR FRQVXPHUV 7KH IRRWSULQW RI WKH EXVLQHVV KDYH SKRWRPHWHU 7\SH &  IURP /07 *HUPDQ\ ̰ WKH EHVW been expanded to Pan India and have been instrumental in equipment available for measurement of luminous output LQFUHDVLQJWKHUHWDLOSUHVHQFHLQWKHPDUNHW:DWHU+HDWHUV DQG LQWHQVLW\ GLVWULEXWLRQV RI OLJKW VRXUFHV OXPLQDLUHV SURGXFWJURXSUHPDLQVPDMRUFRQWULEXWRULQVDOHVNH\PRGHOV DQG IRU WHVWLQJ RI RSWLFDO GHVLJQ RI OLJKWLQJ V\VWHP 7KH KDYH EHHQ 4XER DQG $UFWLF VHULHV ZKLFK KDYH EHHQ DJDLQ FHQWUHLVDOVRHTXLSSHGZLWKDP,QWHJUDWLQJVSKHUHDQG SURPRWHG WKURXJK WKH 79 FDPSDLJQ DV UHVXOW LW ZLWQHVVHG FDUU\ RXW PHDVXUHPHQWV IRU OLJKW GLVWULEXWLRQ SDWWHUQ WKLVVHJPHQWWRJURZE\WRXQLWVLQ

Board’s Report 53 Room Coolers range was further expanded and all new 4 DIVIDEND: designer range of Arctic Room Coolers was launched which The Board considering the Company’s performance ZDVUHFHLYHGZHOOLQWKHPDUNHWWKHFDSDFLW\RIWKLVVHULHV DQG ͤQDQFLDO SRVLWLRQ IRU WKH \HDU XQGHU UHYLHZ ZDV/DQG/WKHGHPDQGRIWKLVSURGXFWKDYHEHHQ recommended a dividend pay-out of ` SHUHTXLW\ overwhelming and with excellent product performance due VKDUHIRUWKH\HDUHQGHGVXEMHFWWRDSSURYDO WRVSHFLDOIHDWXUHVOLNH,FH&KLOO7UD\3RZHUIXOOPRWRUZLWK IURPWKHVKDUHKROGHUVDWWKHHQVXLQJ$*0 723 DQG UREXVW ERG\ 5RRP &RROHUV SURGXFW FDWHJRU\ ZDVSURPRWHGZLWKDEUDQGQHZ79&DPSDLJQZKLFKOHG  7RJHWKHU ZLWK &RUSRUDWH WD[ RQ GLYLGHQG WKH WRWDO WR KLJKHU H[FLWHPHQW LQ WKH WUDGH DQG FRQVXPHUV 7KLV outflow on account of equity dividend will be product segment shall be witnessing a double digit growth ` FURUH in the next 5 years and Surya intends to be a major player LQWKLVFDWHJRU\  7KHGLYLGHQG RQ HTXLW\ VKDUHV LI DSSURYHG DW WKH $QQXDO *HQHUDO 0HHWLQJ ZLOO EH SD\DEOH WR WKRVH 6XU\DDOVRYHQWXUHGLQ6WDLQOHVV6WHHO&RRN7RSVVHJPHQW shareholders whose names appear on the Company’s in an effort to expand the product portfolio and to cater to UHJLVWHURIPHPEHUVRQWK$XJXVW,QUHVSHFW wide consumer base so as to offer best in class material RI VKDUHV KHOG LQ GHPDWHULDOLVHG IRUP WKH GLYLGHQG DQGGHVLJQWRLWVFRQVXPHUVWZRPRGHOV%OD]HDQG6SDUN VKDOOEHSD\DEOHRQWKHEDVLVRIEHQHͤFLDORZQHUVKLS ZHUHODXQFKHGZKLFKZHUHUHFHLYHGZHOOLQWKHPDUNHW DVDWWK$XJXVWDVSHUWKHGHWDLOVIXUQLVKHG Surya plan to further strengthen this business group by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he customer care team also responded by further WZRPHHWLQJVWRFRQVLGHUDPRQJVWRWKHUEXVLQHVVWKH appointing service franchises across the country in order TXDUWHUO\ SHUIRUPDQFH RI WKH &RPSDQ\ DQG ͤQDQFLDO to offer exceptional customer care service experience in UHVXOWV WKLVEXVLQHVVVHJPHQW  'XULQJWKHODVWͤQDQFLDO\HDURXU%RDUGPHWIRXUWLPHV Surya also plans to further leverage E commerce which RQWK0D\WK$XJXVWWK1RYHPEHU KDYH EHFRPH D ELJ FRQWULEXWRU LQ VDOHV ZLWK H[FOXVLYH DQGWK)HEUXDU\ PRGHOV WR RIIHU WR LWV FRQVXPHUV $SSOLDQFHV %XVLQHVV VKDOOEHORRNLQJIRUZDUGWRQHZSURGXFWJURXSVDQGVKDOO 6 DIRECTORS AND KEY MANANGERIAL PERSONNEL : EHH[SDQGLQJWKHFXUUHQWPRGHOVLQ5RRP+HDWHUVDVZHOO Re-appointment of Director 2 EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL  $VSHU$UWLFOHRIWKH$UWLFOHVRI$VVRFLDWLRQRIWKH STATEMENTS: &RPSDQ\ 6PW 8UPLO $JDUZDO UHWLUH E\ URWDWLRQ DQG  $V SHU WKH SURYLVLRQV RI 6HFWLRQ   L  RI WKH EHLQJHOLJLEOHRIIHUKHUVHOIIRUUHDSSRLQWPHQW &RPSDQLHV $FW  QR PDWHULDO FKDQJHV RU Change in Directorship: FRPPLWPHQW DIIHFWLQJ WKH ͤQDQFLDO SRVLWLRQ KDYH EHHQRFFXUUHGEHWZHHQWKHHQGRIWKHͤQDQFLDO\HDU  0U 0XNHVK 7ULSDWKL ([HFXWLYH 1RQ,QGHSHQGHQW RI WKH &RPSDQ\ WR ZKLFK WKH ͤQDQFLDO VWDWHPHQWV 'LUHFWRU RI WKH &RPSDQ\ KDYLQJ ',1  UHODWHVWRWKHGDWHRIWKHUHSRUW had resigned from the Board of the Company ZHIWK0D\RQDFFRXQWRIKLVLOOKHDOWK

54 ANNUAL REPORT 2018-19 Mr. Utpal Kumar Anil Kumar Mukhopadhyay, Independent 1DPHRIWKHRIͤFLDO V Key Managerial Personnel Director of the Company (DIN-02766045) had resigned (KMPs) OVERVIEW CORPORATE from the Board of the Company on 2nd June, 2018 on Sh. Raju Bista Managing Director account of his ill health. He later expired on 20th June, Sh. R N Maloo ED & Group Chief Financial 2IͤFHU 2018.Your Directors placed on record the high sense of Sh. Tarun Baldua C.E.O – Steel & Strips appreciation for the wise counsel and valuable services Operations rendered by Mr. Utpal Kumar Anil Kumar Mukhopadhyay Sh. Ramanjit Singh C.E.O – Lighting & Consumer STATUTORY REPORTS REPORTS STATUTORY during his tenure on the Board and express deep Durables Operations Sh. B B Singal Sr. V.P & Company Secretary condolence on the sad demise of the ex-director. During the year, under review, there was no change in Smt. Shivani Singla, Nominee Director of IDBI Bank Key Managerial Personnel of the Company. Ltd has resigned from the Board of the Company w. e. f 5th March, 2019 as IDBI Bank Limited withdrawn 7. DECLARATION FROM INDEPENDENT DIRECTORS ON the nomination from the Board of the Company. Your ANNUAL BASIS FINANCIAL SECTION Directors placed on record the high sense of appreciation The Company has received necessary declaration for the wise counsel and valuable services rendered by from each Independent Director of the Company under Ms. Shivani Singla during her tenure on the Board. Section 149(7) of the Companies Act, 2013 that the

Appointment of Director Independent Directors of the Company meet with the criteria of their Independence laid down in Section The Board of Directors on the recommendation of 149(6) of the Companies Act, 2013. Nomination and Remuneration Committee (NRC) at its meeting has appointed Mr. Vinay Surya having FAMILARISE PROGRAMME FOR INDEPENDENT DIN – 00515803 as an Additional Whole-time Director DIRECTORS of the Company w.e.f 18th May, 2018 and subsequently In view of the provisions of Regulation 25(7) of SEBI approved the appointment by the Shareholders at the AGM (Listing Obligations and Disclosure Requirements) held on 28th September, 2018 as per the provisions of the Regulations, 2015 and Companies Act, 2013, a Companies Act, 2013 read with SEBI (Listing Obligations familiarization programme for Independent Directors and Disclosure Requirements) Regulations, 2015. was organised during the year to make them update on the recent amendments in the provisions of the The Board of Directors on the recommendation of SEBI and Corporate Laws. A detailed familiarisation Nomination and Remuneration Committee (NRC) programme was presented by representative of at its meeting has appointed Mr. Kaustubh Narsinh &RUSRUDWH 3URIHVVLRQDO OHDGLQJ ͤUP RI &RUSRUDWH Karmarkar having DIN – 00288642 as an Additional Law Consultants of the amendments / newly inserted Whole-time Director of the Company w.e.f 10th August, regulations in the SEBI (Prohibition of Insider Trading) 2018 and subsequently approved the appointment by Regulations, 2015 effective from 1st April, 2019 the Shareholders at the AGM held on 28th September, and other recent legal updates, which was keenly 2018 as per the provisions of the Companies Act, 2013 participated by every Director on the Board of the read with SEBI (Listing Obligations and Disclosure Company and express happiness Requirements) Regulations, 2015. over the same. The detailed familiarisation programme for Appointment of Key Managerial Personnel (KMPs) Directors was uploaded on the As per the provisions of section 203 of the Companies website of the Company at the $FW  IROORZLQJ RIͤFLDOV DV QDPHG EHORZ DUH .H\ following link: http://www.surya.co.in/Content/ Managerial personnel of the Company during the year Images/uploaded/familiarization-programme-for- under review independent-directors/Recent-Legal-Updates.pdf

Board’s Report 55 8. COMPOSITION OF AUDIT & OTHER COMMITTEES Committee discussed with the external auditors their DXGLW PHWKRGRORJ\ DXGLW SODQQLQJ DQG VLJQLͤFDQW

7KH$XGLW &RPPLWWHH FRPSULVHV RI WKUHH 'LUHFWRUV REVHUYDWLRQV  VXJJHVWLRQV PDGH E\ WKHP 7KH The names along with categories of the members at Committee also discussed major issues related to WKHPHHWLQJZDVDVIROORZV ULVN PDQDJHPHQW DQG FRPSOLDQFHV DQG UHYLHZ WKH IXQFWLRQLQJRI:KLVWOH%ORZHUPHFKDQLVP Names of the Director Category Members ,GHQWLͤFDWLRQ1R  $VSHU5XOH$RIWKH&RPSDQLHV 0HHWLQJRI%RDUG 0U.ULVKDQ  &KDLUPDQ DQG LWV 3RZHUV  5XOHV  DQG LQ FRPSOLDQFH Kumar Narula Independent – WR UHJXODWLRQ    RI 6(%, /LVWLQJ 2EOLJDWLRQV Director DQG 'LVFORVXUH 5HTXLUHPHQWV  5HJXODWLRQV  0U7DUD  0HPEHU 6DQNDU6XGKLU Independent – committee to recommend to grant Omnibus approval Bhattacharya Director for proposed related party transactions which are 0U6XUHQGUD  0HPEHU foreseen and for unforeseen transactions as per the Singh Khurana* Independent – IUDPHGVSHFLͤHGFULWHULDRQDQDQQXDOEDVLV Director 0U8WSDO.  0HPEHU  ,QDGGLWLRQWKH&RPPLWWHHKDVGLVFKDUJHGVXFKRWKHU 0XNKRSDGK\D\ Independent – UROHIXQFWLRQDVHQYLVDJHGXQGHU3DUW&RI6FKHGXOH Director II of SEBI (Listing Obligations and Disclosure 0U0XNHVK  0HPEHU1RQ 5HTXLUHPHQWV  5HJXODWLRQV  UHIHUUHG WR DV ̴ Tripathi *** Independent – /LVWLQJ 5HJXODWLRQV̵ ZLWK WKH 6WRFN ([FKDQJH  DQG Director WKH SURYLVLRQV RI 6HFWLRQ    RI WKH &RPSDQLHV $FW  $XGLW &RPPLWWHH RI WKH &RPSDQ\ * Inducted by re-constitution of the Committee by discharged its role and duties with great commitment WKH%RDUGRI'LUHFWRUVZHIWK0D\ and further any recommendations made by the   5HVLJQHGIURPWKH'LUHFWRUVKLSRQQG-XQH Audit committee within the terms of its reference is GXH WR LOO KHDOWK DQG ODWHU H[SLUHG RQ WK -XQH FRQVLGHUHG DQG DSSURYHG E\ WKH %RDUG DFFRUGLQJO\  No recommendation of the Audit Committee is turned  5HVLJQHG IURP WKH %RDUG RI WKH &RPSDQ\ RQ WK GRZQGXULQJWKH\HDUXQGHUUHYLHZ 0D\ NOMINATION AND REMUNERATION COMMITTEE  $OOPHPEHUVRIDXGLWFRPPLWWHHDUHͤQDQFLDOO\OLWHUDWH DQGKDYHDFFRXQWLQJDQGUHODWHGͤQDQFLDOPDQDJHPHQW The composition of the Committee is as follows: H[SHUWLVH$XGLW&RPPLWWHHDVIRUPHGDERYHPHHWWKH Name of the DIN Position Category FULWHULDDVSURYLGHGLQ5HJXODWLRQUHDGZLWK3DUW&RI Member Schedule II of SEBI (Listing Obligations and Disclosure 0U.ULVKDQ  Chairman Non- 5HTXLUHPHQWV  5HJXODWLRQV  DQG DOVR PHHW WKH Kumar Narula ([HFXWLYH Independent SURYLVLRQVRI6HFWLRQRIWKH&RPSDQLHV$FW 0U5DYLQGHU  Member Non- The Audit Committee is responsible for overseeing of Kumar Narang ([HFXWLYH Independent WKH&RPSDQ\̵VͤQDQFLDOUHSRUWLQJSURFHVVUHYLHZLQJ 0U6XUHQGUD  Member Non- WKHTXDUWHUO\KDOI\HDUO\DQQXDOͤQDQFLDOVWDWHPHQWV Singh Khurana ([HFXWLYH UHYLHZLQJ ZLWK WKH PDQDJHPHQW RQ WKH ͤQDQFLDO Independent VWDWHPHQWVDQGDGHTXDF\RILQWHUQDODXGLWIXQFWLRQ UHFRPPHQGLQJWKHDSSRLQWPHQWUHDSSRLQWPHQWRI The Nomination and Remuneration Committee is VWDWXWRU\DXGLWRUVDQGͤ[DWLRQRIDXGLWIHHVDORQJZLWK responsible for- reviewing and monitoring the auditor’s independence  ̽ ,GHQWLI\LQJSHUVRQVZKRDUHTXDOLͤHGWREHFRPH DQG SHUIRUPDQFH UHYLHZLQJ WKH VLJQLͤFDQW LQWHUQDO directors and who may be appointed in Senior DXGLWͤQGLQJVUHODWHGSDUW\WUDQVDFWLRQVUHYLHZLQJ Management in accordance with the criteria WKH0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLVRIͤQDQFLDO laid down and recommend to the Board their FRQGLWLRQ DQG UHVXOW RI RSHUDWLRQ 0DWWHUV WR EH DSSRLQWPHQWDQGUHPRYDO included in Director’s Responsibility Statement form SDUW RI WKH %RDUG 5HSRUW FRPSOLDQFH ZLWK OLVWLQJ  ̽ 6KDOOVSHFLI\WKHPDQQHUIRUHIIHFWLYHHYDOXDWLRQ DQG RWKHU OHJDO UHTXLUHPHQWV UHODWLQJ WR ͤQDQFLDO RI SHUIRUPDQFH RI WKH %RDUG LWV FRPPLWWHHV VWDWHPHQWV VFUXWLQ\ RI LQWHUFRUSRUDWH ORDQV DQG and individual directors and review its LQYHVWPHQWV YDOXDWLRQ RI XQGHUWDNLQJ RU DVVHWV RI LPSOHPHQWDWLRQDQGFRPSOLDQFHV WKH&RPSDQ\7KH&RPPLWWHHDFWVDVDOLQNEHWZHHQ  ̽ )L[DWLRQRI WKH UHPXQHUDWLRQ RI WKH GLUHFWRUV WKH PDQDJHPHQW H[WHUQDO DQG LQWHUQDO DXGLWRUV NH\PDQDJHULDOSHUVRQQHO .03̵V DQGRQHOHYHO DQG WKH %RDUG RI 'LUHFWRUV RI WKH &RPSDQ\ 7KH EHORZWKH.03V

56 ANNUAL REPORT 2018-19  ,Q DGGLWLRQ WKH &RPPLWWHH GLVFKDUJHG VXFK RWKHU Stakeholder’s Relationship Committee UROHIXQFWLRQ DV HQYLVDJHG XQGHU 5HJXODWLRQ  Composition / name of members and chairperson OVERVIEW CORPORATE read with Part D clause A of Schedule II of SEBI  7KH &RPPLWWHH KHDGHG E\ 0U .ULVKDQ  .XPDU (Listing Obligations and Disclosure Requirements) Narula (Non-executive – Independent Director) 5HJXODWLRQV  DQG DV SHU WKH SURYLVLRQV RI KDVWKH PDQGDWHWRUHYLHZDQGUHGUHVVVWDNHKROGHU 6HFWLRQRIWKH&RPSDQLHV$FW JULHYDQFHV7KH&RPSRVLWLRQRIWKHFRPPLWWHHLVDV Remuneration Policy IROORZV

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60 ANNUAL REPORT 2018-19 Promoting of home and hostels for women and parties were in the ordinary course of business and

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Board’s Report 61 A separate exercise was carried out to evaluate the 24 LISTING WITH STOCK EXCHANGES: performance of every individual director including the The equity shares of the Company were listed on the Chairman and Independent Directors and evaluate the IROORZLQJ6WRFN([FKDQJHVGXULQJWKHͤQDQFLDO\HDU %RDUGV3HUIRUPDQFH%RDUG&RPPLWWHHVSHUIRUPDQFH by the Nomination and Remuneration Committee  and submit its recommendation for review at the The Stock Exchange, The National Stock ,QGHSHQGHQW'LUHFWRUVPHHWLQJ Mumbai Exchange of India Ltd. 5RWXQGD%XLOGLQJ'DODO ([FKDQJH3OD]D%DQGUD Based on the recommendations of the Nomination 6WUHHW)RUW0XPEDL̰ .XUOD&RPSOH[%DQGUD DQG5HPXQHUDWLRQ&RPPLWWHH,QGHSHQGHQWGLUHFWRUV  0XPEDL̰ DWWKHLUPHHWLQJKHOGRQWK-DQXDU\UHYLHZ Stock Code and evaluate the performance of Non-Independent Directors including the Chairman and further National Bombay Stock ISIN Stock Ex- Exchange UHYLHZDQGHYDOXDWHWKH%RDUGV3HUIRUPDQFH%RDUG change Committees performance and submit its report to the Equity SURYAROSNI  ,1($ &KDLUPDQRIWKH&RPSDQ\IRUDVVHVVPHQW Shares- (Dematerialised) Symbol / The performance evaluation as carried out by the Code  3K\VLFDO Nomination and Remuneration committee and Independent Directors at their respective meetings The Company has paid the Annual Listing Fees to ZHUH EDVHG RQ )HHG ̰ EDFN IRUP UHFHLYHG IURP both the Stock Exchanges for the Financial Year 'LUHFWRUV )HHGEDFN IRUP FDUULHG D VWUXFWXUHG 2018-19 and 2019-20. TXHVWLRQQDLUHSUHSDUHGDIWHUWDNLQJLQWRFRQVLGHUDWLRQ 25 CORPORATE GOVERNANCE AND SHAREHOLDERS various aspects of the Board’s functioning and submit INFORMATION WKHLUUHSRUWDFFRUGLQJO\ &RPSDQ\ KDV WDNHQ DGHTXDWH VWHSV WR DGKHUH WR DOO  3XUVXDQW WR WKH SURYLVLRQV 6HFWLRQ   S   DQG WKH VWLSXODWLRQV ODLG GRZQ LQ &ODXVH  WR  UHDG ZLWK &ODXVH 9,,, RI 6FKHGXOH ,9 RI WKH &RPSDQLHV $FW Schedules of SEBI (Listing Obligations and Disclosure  RWKHU DSSOLFDEOH SURYLVLRQV RI WKH $FW DQG 5HTXLUHPHQWV 5HJXODWLRQV̸/LVWLQJ5HJXODWLRQV̹$ in compliance with the provisions of Regulation report on Corporate Governance is provided in Annexure –     DQG    UHDG ZLWK 3DUW ' RI 6FKHGXOH VIIDQGIRUPSDUWRIWKLV5HSRUW II of SEBI (Listing Obligations and Disclosure 5HTXLUHPHQWV  5HJXODWLRQV  UHIHUUHG WR DV WKH  &HUWLͤFDWH IURP WKH 6WDWXWRU\ $XGLWRUV RI WKH &RPSDQ\ /LVWLQJ5HJXODWLRQVUHDGZLWK6(%,&LUFXODU1R6(%, FRQͤUPLQJWKHFRPSOLDQFHZLWKWKHFRQGLWLRQVRI&RUSRUDWH +2&)'&0'&,53 GDWHG WK -DQXDU\ Governance as stipulated under Regulations read with RQ *XLGDQFH 1RWH RQ %RDUG HYDOXDWLRQ IRUPDO Schedules of SEBI (Listing Obligations and Disclosure annual evaluation has been made by the Board after 5HTXLUHPHQWV 5HJXODWLRQVLVDWWDFKHGWRWKLVUHSRUW reviewing each and every parameter of Performance BOARD DIVERSITY HYDOXDWLRQ  RI  %RDUG DV D ZKROH  LWV  &RPPLWWHHV The Company recognises and embraces the importance of and that of every individual director (including DGLYHUVH%RDUGLQLWVVXFFHVV:HEHOLHYHWKDWDWUXO\GLYHUVH ,QGHSHQGHQW 'LUHFWRUV  LQ GHWDLO DQG DIWHU WDNLQJ ERDUG ZLOO OHYHUDJH GLIIHUHQFHV LQ WKRXJKW SHUVSHFWLYH into consideration the report submitted by NRC and NQRZOHGJHVNLOOLQGXVWULDOH[SHULHQFHDJHHWKQLFLW\JHQGHU ,QGHSHQGHQW 'LUHFWRUV RQ SHUIRUPDQFH HYDOXDWLRQ ZKLFKZLOOKHOSXVWRUHWDLQRXUFRPSHWLWLYHDGYDQWDJH7KH collectively submit Comprehensive Annual Evaluation Board as recommended by Nomination and Remuneration 3HUIRUPDQFH5HSRUWLQUHJDUGWRLWVRZQSHUIRUPDQFH Committee has adopted the Board Diversity Policy which LWV &RPPLWWHHV YL] $XGLW &RPPLWWHH 1RPLQDWLRQ  set out the approach to diversity of the Board of Directors 5HPXQHUDWLRQ&RPPLWWHH6WDNHKROGHU̵V5HODWLRQVKLS &RPPLWWHH &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ 26 GENERAL Committee and other Compliance Committees and  L ,QFRPSOLDQFH ZLWK VHFWLRQ   E  DQG RWKHU WKDWRILQGLYLGXDOGLUHFWRUVLQFOXGLQJLWV&KDLUSHUVRQ DSSOLFDEOHSURYLVLRQVRIWKH&RPSDQLHV$FW 0DQDJLQJ 'LUHFWRU ,QGHSHQGHQW 'LUHFWRUV DQG WKHPHPEHUVDWWKHWK$QQXDO*HQHUDO0HHWLQJ 1RQLQGHSHQGHQW GLUHFWRUV DFFRUGLQJO\ 'LUHFWRUV RIWKH&RPSDQ\KHOGRQWK6HSWHPEHUKDV expressed deep satisfaction with the entire DXWKRUL]HG WKH %RDUG RI 'LUHFWRUV WR DOORW (TXLW\ SHUIRUPDQFHHYDOXDWLRQSURFHVV 6KDUHV XSWR  (LJKW ODNK  RI `  HDFK

62 ANNUAL REPORT 2018-19 XQGHU ̸65/ (PSOR\HH 6WRFN 2SWLRQ 6FKHPH ̰ DQG 5HPXQHUDWLRQ RI 0DQDJHULDO 3HUVRQQHO  5XOHV ̹ ̸6FKHPH̹  URXWHG WKURXJK ̸6XU\D 5RVKQL  LQ UHVSHFW RI HPSOR\HHV RI WKH &RPSDQ\ LV OVERVIEW CORPORATE /LPLWHG (PSOR\HHV :HOIDUH 7UXVW̹ 1R IXUWKHU enclosed as per Annexure IX VWHSV KDYH EHHQ WDNHQ WLOO GDWH E\ WKH &RPSDQ\ 28 ACKNOWLEDGEMENTS post approval from the members at the AGM in UHJDUGWRWKHVDLG6FKHPHIRULWVLPSOHPHQWDWLRQ The Board places on record their appreciation for  LL 

 LLL $VSHU6(%, /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH  7KH%RDUGDOVRZLVKWRSODFHRQUHFRUGRQFHDJDLQ 5HTXLUHPHQWV  5HJXODWLRQV  UHIHUUHG their appreciation for the contribution made by the

WR DV WKH /LVWLQJ 5HJXODWLRQV ZLWK WKH 6WRFN ZRUNHUV VWDII DQG H[HFXWLYHV DW DOO OHYHOV WR WKH FINANCIAL SECTION ([FKDQJHV WKH FRPSOLDQFH FHUWLͤFDWH IURP FRQWLQXHGJURZWKDQGSURVSHULW\RIWKH&RPSDQ\7KH &KDLUPDQ 0DQDJLQJ 'LUHFWRU DQG ([HFXWLYH overall industrial relations remained cordial at all the 'LUHFWRU  *URXS &)2 LV JLYHQ DQG PDUNHG DV HVWDEOLVKPHQWV Annexure – VIIIWRWKHUHSRUW for and on behalf of the Board of Directors

27 PARTICULARS OF EMPLOYEES : J P A g a r w a l  7KHLQIRUPDWLRQ UHTXLUHG SXUVXDQW WR 6HFWLRQ  Place: New Delhi Chairman  UHDGZLWKUXOHRIWKH&RPSDQLHV $SSRLQWPHQW Dated: 21st May, 2019 DIN- 00041119

Board’s Report 63 ANNEXURE – I TO BOARD’S REPORT

FORM NO. AOC - 1 3XUVXDQWWRWKHͤUVWSURYLVRWRVXEVHFWLRQ  RIVHFWLRQUHDGZLWKUXOHRI&RPSDQLHV $FFRXQWV 5XOHV 6WDWHPHQWFRQWDLQLQJVDOLHQWIHDWXUHVRIWKHͤQDQFLDOVWDWHPHQWRIVXEVLGLDULHVRUDVVRFLDWHFRPSDQLHVRUMRLQWYHQWXUHV 3DUW$6XEVLGLDULHV ,QIRUPDWLRQLQUHVSHFWRIHDFKVXEVLGLDU\WREHSUHVHQWHGZLWKDPRXQWVLQ` 1. Sl. No. 1 2. Name of the Subsidiary SURYA ROSHNI LED LIGHTING PROJECTS LIMITED &,1̰8'/3/& 3. The date since when subsidiary was acquired VW-DQXDU\ 4. Reporting period for the subsidiary concerned, if different VW-DQXDU\WRVW0DUFK from the holding Company’s reporting period 5. Reporting currency and Exchange rate as on last date of the 1RW$SSOLFDEOH UHOHYDQWͤQDQFLDO\HDULQWKHFDVHRIIRUHLJQVXEVLGLDULHV 6. Share Capital (TXLW\6KDUHVRI`HDFKIXOO\SDLGXS 7. Reserve and Surplus  8. Total assets  9. Total liabilities  10. Investments - 11. Turnover - 12. 3URͤWEHIRUH7D[DWLRQ  13. Provision for taxation  14. 3URͤWDIWHUWD[DWLRQ  15. Proposed Dividend 1LO 16. Extent of shareholding (in %)  :KROO\RZQHG6XEVLGLDU\ 1RWHV7KHIROORZLQJLQIRUPDWLRQVKDOOEHIXUQLVKHGDWWKHHQGRIWKHVWDWHPHQW 1. Names of the subsidiaries which are yet to commence operations: 1LO 2. Names of the subsidiaries which have been liquidated or sold during the year: 1LO PART B ASSOCIATE AND JOINT VENTURE

6WDWHPHQWSXUVXDQWWR6HFWLRQ  RIWKH&RPSDQLHV$FWUHODWHGWR$VVRFLDWH&RPSDQLHVDQG-RLQW9HQWXUHV 6O 1DPHRI$VVRFLDWHRU-RLQW9HQWXUH 1DPH 1DPH 1DPH No. 1. Latest audited Balance Sheet Date 2. Date on which the Associate or Joint Venture was associated or acquired 3. Shares of Associates or Joint Ventures held by the Company on the year end No. Amount of Investment in Associate or Joint Venture Extent of Holding (in %) 1LO 4. 'HVFULSWLRQRIKRZWKHUHLVVLJQLͤFDQWLQIOXHQFH 5. Reason why the associate / joint venture is not consolidated 6. Networth attributable to shareholding as per latest audited Balance sheet 7. 3URͤWRU/RVVIRUWKH\HDU i Considered in Consolidation ii Not Considered in Consolidation

1. Names of the associates or Joint ventures which are yet to commence operations:1LO 2. Names of the associates or joint ventures which have been liquidated or sold during the year:1LO

IRUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV -3$JDUZDO 3ODFH1HZ'HOKL &KDLUPDQ 'DWHGVW0D\ ',1

 ANNUAL REPORT  ANNEXURE – II

TO BOARD’S REPORT OVERVIEW CORPORATE

EXTRACT OF ANNUAL RETURN DVRQWKHͤQDQFLDO\HDUHQGHGRQVW0DUFK >3XUVXDQWWRVHFWLRQ  RIWKH&RPSDQLHV$FWDQGUXOH  RIWKH&RPSDQLHV 0DQDJHPHQWDQG$GPLQLVWUDWLRQ 5XOHV@ STATUTORY REPORTS REPORTS STATUTORY I. REGISTRATION AND OTHER DETAILS:

i) CIN /+53/& ii) Registration Date WK2FWREHU iii) Name of the Company SURYA ROSHNI LIMITED iv) &DWHJRU\6XE&DWHJRU\RIWKH&RPSDQ\ Manufacturing v) $GGUHVVRIWKH5HJLVWHUHGRIͤFHDQGFRQWDFWGHWDLOV 3UDNDVK1DJDU6DQNKRO%DKDGXUJDUK̰

Haryana FINANCIAL SECTION vi) Whether listed company Yes vii) 1DPH $GGUHVV DQG &RQWDFW GHWDLOV RI 5HJLVWUDU DQG Mas Services Limited 7UDQVIHU$JHQWLIDQ\ 7QGIORRU 2NKOD,QGXVWULDO$UHD3KDVH̰,, 1HZ'HOKL̰ 7HO1R̰   (PDLOLQIR#PDVVHUYFRP

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

 $OOWKHEXVLQHVVDFWLYLWLHVFRQWULEXWLQJRUPRUHRIWKHWRWDOWXUQRYHURIWKHFRPSDQ\VKDOOEHVWDWHG SI. Name and Description of 1,&&RGHRIWKH3URGXFWVHUYLFH WRWRWDOWXUQRYHURIWKHFRPSDQ\ No. PDLQSURGXFWVVHUYLFHV 1 3LSHV 7XEHV    CR Strips   3 Lighting Products  

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

SI. Name and address of the CIN Holding/Subsidiary % of Share Applicable No. Company /Associate Held Section  SURYA ROSHNI LED LIGHTING 8'/3/& Wholly-owned    PROJECTS LIMITED, Subsidiary

Flat No. 404, 4th floor, 5 Rajendra place, Padma Tower -1, Delhi (India) – 110008

IV. SHAREHOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) I) Category wise Share Holding

Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change Shareholders during the year Demat Physical Total % of Total Demat Physical Total % of Total Shares Shares A. Promoters (1) Indian D ,QGLYLGXDOV+8)  -    -   - (b) Central - - - - Government - - - c) State Government ------

Board’s Report 65 Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change Shareholders during the year Demat Physical Total % of Total Demat Physical Total % of Total Shares Shares d) Bodies Corporate  -    -   - H %DQNV)LQDQFLDO ------Institutions - f) Any other (specify) ------Sub-Total (A) (1) 3,42,23,744 - 3,42,23,744 62.90 3,42,23,744 - 3,42,23,744 62.90 -

(2) Foreign a) NRIs - Individuals ------b) Other Individuals ------c) Bodies Corporate ------G %DQNV)LQDQFLDO ------Institutions e) Any other (specify) ------Sub-Total (A) (2) ------Total Shareholding 3,42,23,744 3,42,23,744 62.90 3,42,23,744 - 3,42,23,744 62.90 - of Promoter (A) = (A) (1)+(A)(2) (B) Public shareholding (1) Institutions a) Mutual Funds         (-) b) Alernate  -    -    Investment Funds F %DQNV)LQDQFLDO          Institutions d) Central ------Government(s) e) State ------Government(s) f) Venture Capital ------Funds g) Insurance -    -    - Companies h) Foreign     -    Institutional Investors - i) Foreign Venture ------Capital Funds j) Any other (specify)     -      )RUHLJQ,QVWLWXWLRQDO Investors Sub-Total (B) (1) 18,13,285 5,175 18,18,460 3.34 20,15,941 5,100 20,21,041 3.71 0.37

 1RQLQVWLWXWLRQV (a) Bodies Corporate i) Indian           ii) Overseas ------b) Individuals - - - i) Individual          shareholders holding nominal share capital upto `ODNK ii) Individual  -    -    shareholders holding nominal share capital in excess of `ODNK

66 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

Category of No. of Shares held at the beginning of the year No. of Shares held at the end of the year % change Shareholders during the year Demat Physical Total % of Total Demat Physical Total % of Total Shares Shares c) Any other (specify) STATUTORY REPORTS REPORTS STATUTORY NBFC Registered  -    -     with RBI 15,V2&%          Clearing Members  -    -    Trust  -    -     Unclaimed Suspense  -    -    or Escrow Account

Sub-Total (B) (2) 1,77,95,620 5,71,150 1,83,66,770 33.76 1,77,06,725 4,57,464 1,81,64,189 33.38 (0.37) FINANCIAL SECTION Total Public 1,96,08,905 5,76,325 2,01,85,230 37.10 1,97,22,666 4,62,564 2,01,85,230 37.10 - Shareholding (B) = (B)(1)+(B)(2)

(C) Shares held by ------Custodians for GDRs & ADRs

GRAND TOTAL 5,38,32,649 5,76,325 5,44,08,974 100.00 5,39,46,410 4,62,564 5,44,08,974 100.00 - (A)+(B)+(C) (II) Shareholding of Promoters:

Sl. Shareholders Shareholding at the beginning of the year Shareholding at the end of the year No. Name Demat Physical Total No. of % of total % of shares Demat Physical Total No. of % of total % of shares % change in shares shares pedged/ shares shares pedged/ shareholding of the encumbered of the encumbered during the Company to total Company to total year shares shares 1 'LZDNDU  -     -    - 0DUNHWLQJ3ULYDWH Limited  &XELWH[0DUNHWLQJ  -   -  -   - - Private Limited 3Shreyansh  -   -  -   - - Mercantile Private Limited  Sahaj Tie-up  -     -    - 3ULYDWH/LPLWHG 5 Dicord  -   -  -   - - Commodeal 3ULYDWH/LPLWHG  Shirin  -     -   - - Commodeal Private Limited  S M Vyapaar  -     -    - Private Limited  Goel Die Cast  -   -  -   - - Limited  -DL3UDNDVK  -     -      Agarwal  Zatco Vyapar  -   -  -   - - 3ULYDWH/LPLWHG 11 Sadabahar  -   -  -   - - Tradecomm 3ULYDWH/LPLWHG  -LWV&RXULHU   -   -  -   - - Finance Private Limited 13 3DQNDM  -   -  -   - - Investments Limited  B M Graphics  -   -  -   - - 3ULYDWH/LPLWHG

Board’s Report 67 Sl. Shareholders Shareholding at the beginning of the year Shareholding at the end of the year No. Name Demat Physical Total No. of % of total % of shares Demat Physical Total No. of % of total % of shares % change in shares shares pedged/ shares shares pedged/ shareholding of the encumbered of the encumbered during the Company to total Company to total year shares shares 15 Gargiya Finance  -   -  -   - - ,QYHVWPHQW 3ULYDWH/LPLWHG  9LNVLW7UDGLQJ   -   -  -   - - Holding Private Limited  Urmil Agarwal  -   -  -   - -  Jaivardhan Surya - - - - -  -    8*9LQD\6XU\D  Parinistha Surya - - - - -  -    8*9LQD\6XU\D  Vasudha Surya - - - - -  -     Vinay Surya  -   -  -   - -  Lustre Merchants    -    - - 3ULYDWH/LPLWHG - - TOTAL 3,42,23,744 - 3,42,23,744 62.901 14.991 3,42,23,744 3,42,23,744 62.901 14.891 - - (iii) Change in Promoters’ Shareholding (please specify, if there is no change) Sl. Name of the Promoter / Shareholding at the beginning of Date wise Increase / Decrease in Shareholding &XPXODWLYH6KDUHKROGLQJ No Promoter Group the year during the year specifying the reasons for increase during the year (01-04- / decrease (e.g allotment / transfer/bonus/ sweat 2018 to 31-03-2019) equity etc.) No. of Shares at the % of total Date Increase / Reason No. of % of total beginning (01-04- shares Decrease in Shares shares of the 2018) and end of the of the shareholding Company year (31-03-2019) Company 1 'LZDNDU0DUNHWLQJ3ULYDWH   $SU - -   Limited No Movement during the Year  - 0DU - -    &XELWH[0DUNHWLQJ3ULYDWH   $SU - -   Limited No Movement during the Year   0DU - -   3 6KUH\DQVK0HUFDQWLOH3ULYDWH   $SU - -   Limited No Movement during the Year   0DU - -    6DKDM7LHXS3ULYDWH/LPLWHG   $SU - -   No Movement during the Year   0DU - -   5 'LFRUG&RPPRGHDO3ULYDWH   $SU - -   Limited. No Movement during the Year   0DU - -    6KLULQ&RPPRGHDO3ULYDWH   $SU - -   Limited No Movement during the Year   0DU - -    609\DSDDU3ULYDWH/LPLWHG   $SU - -   No Movement during the Year   0DU - -    Goel Die Cast Limited   $SU - -   No Movement during the Year   0DU - -    Jai Prakash Agarwal   $SU - -   $SU   Inter-se   Transfer   0DU - -    =DWFR9\DSDU3ULYDWH   $SU - -   Limited.

68 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

Sl. Name of the Promoter / Shareholding at the beginning of Date wise Increase / Decrease in Shareholding &XPXODWLYH6KDUHKROGLQJ No Promoter Group the year during the year specifying the reasons for increase during the year (01-04- / decrease (e.g allotment / transfer/bonus/ sweat 2018 to 31-03-2019) equity etc.) No. of Shares at the % of total Date Increase / Reason No. of % of total beginning (01-04- shares Decrease in Shares shares of the

2018) and end of the of the shareholding Company REPORTS STATUTORY year (31-03-2019) Company No Movement during the Year   0DU - -   11 Sadabahar Tradecomm   $SU - -   3ULYDWH/LPLWHG No Movement during the Year   0DU - -    Jits Courier & Finance   $SU - -  

3ULYDWH/LPLWHG FINANCIAL SECTION No Movement during the Year   0DU - -   13 3DQNDM,QYHVWPHQWV/LPLWHG   $SU - -   No Movement during the Year   0DU - -    %0*UDSKLFV3ULYDWH   $SU - -   Limited. No Movement during the Year   0DU - -   15 Gargiya Finance &   $SU - -   ,QYHVWPHQW3ULYDWH/LPLWHG No Movement during the Year   0DU - -    Viksit Trading & Holding   $SU - -   3ULYDWH/LPLWHG No Movement during the Year   0DU - -    Urmil Agarwal   $SU - -   No Movement during the Year   0DU - -    -DLYDUGKDQ6XU\D8*9LQD\ - - $SU - - - Surya - $XJ  Inter-se   Transfer   0DU - -    Parinistha Surya U/G Vinay - - $SU - - - - Surya $XJ  Inter-se   Transfer   0DU - -    Vasudha Surya - - $SU - - $XJ  Inter-se   Transfer   0DU    Vinay Surya   $SU   $SU  Inter-se   Transfer $XJ  Inter-se   Transfer   0DU    /XVWUH0HUFKDQWV3ULYDWH   $SU   Limited No Movement during the Year   0DU   Total Promoter Holding as at 3,42,23,744 62.901 - - - 3,42,23,744 62.901 31-03-2019

Board’s Report 69 LY  6KDUHKROGLQJ3DWWHUQRI7RS6KDUHKROGHUV RWKHUWKDQ'LUHFWRUV3URPRWHUVDQG+ROGHUVRI*'5VDQG$'5V Sl. Name of the top 10 Shareholding at the beginning of the year Date wise Increase / Decrease in Shareholding &XPXODWLYH6KDUHKROGLQJ No. shareholders during the year specifying the reasons for during the year (01-04- increase / decrease (e.g allotment / transfer/ 2018 to 31-03-2019) bonus/ sweat equity etc.) No. of Shares at the % of total Date Increase / Reason No. of % of total beginning (01-04- shares of the Decrease in Shares shares of the 2018) and end of the company shareholding Company year (31-03-2019) 1 VLS Finance Limited   $SU - -   $SU   Transfer   $SU   Transfer   $SU   Transfer   0D\   Transfer   0D\  Transfer   0D\  Transfer   0D\  Transfer   -XO   Transfer   $XJ   Transfer   $XJ   Transfer   -DQ   Transfer   )HE  Transfer   )HE   Transfer   0DU   Transfer   0DU   Transfer   0DU   Transfer     0DU   2 Vikas Vijaykumar   $SU - -   Khemani   6HS - Date of   Separation 3 Bharat Taparia   $SU - -   1RY  Transfer   1RY  Transfer   1RY  Transfer   'HF  Transfer   'HF  Transfer   )HE  Transfer   )HE  Transfer   0DU  Transfer     0DU -   4 India Whizdom Fund   $SU - -   No Movement during the year   0DU - -   5 Soyuz Trading Company   $SU - -   Limited No Movement during the year   0DU - -   6 9LEJ\RU,QYHVWRUVDQG   $SU - -   'HYHORSHUV3ULYDWH No Movement during the year Limited   0DU - -   7 Raxon Motor Finance   $SU - -   3ULYDWH/LPLWHG No Movement during the year   0DU - -   8 Henco Commercials   $SU - -   3ULYDWH/LPLWHG $SU   Transfer   $SU   Transfer   0D\   Transfer   0D\   Transfer   -XQ  Transfer   -XQ  Transfer  

70 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE Sl. Name of the top 10 Shareholding at the beginning of the year Date wise Increase / Decrease in Shareholding &XPXODWLYH6KDUHKROGLQJ No. shareholders during the year specifying the reasons for during the year (01-04- increase / decrease (e.g allotment / transfer/ 2018 to 31-03-2019) bonus/ sweat equity etc.) No. of Shares at the % of total Date Increase / Reason No. of % of total beginning (01-04- shares of the Decrease in Shares shares of the 2018) and end of the company shareholding Company year (31-03-2019) -XQ  Transfer   REPORTS STATUTORY -XQ  Transfer   -XO   Transfer   -XO   Transfer   $XJ   Transfer   $XJ   Transfer   $XJ  Transfer   $XJ  Transfer   $XJ  Transfer   FINANCIAL SECTION 6HS  Transfer   6HS  Transfer   6HS  Transfer   6HS  Transfer   2FW  Transfer   2FW   Transfer   1RY  Transfer   'HF  Transfer   'HF   Transfer   -DQ   Transfer   -DQ   Transfer   0DU   Transfer   0DU   Transfer   0DU   Transfer   0DU  Transfer     0DU - -   9 3UDMLQ%DUWHU3ULYDWH   $SU - -   /LPLWHG No Movement during the year   0DU - -   10 Ashika Credit Capital   $SU - -   Limited -XO  Transfer   6HS   Transfer   6HS  Transfer   2FW   Transfer   2FW  Transfer   2FW   Transfer   2FW   Transfer   1RY   Transfer   1RY  Transfer   1RY  Transfer   1RY   Transfer   'HF   Transfer   'HF  Transfer   'HF   Transfer   'HF   Transfer   'HF   Transfer   'HF  Transfer   -DQ  Transfer -  -  -DQ Date of  Separation - 11 Edelweiss Broking   $SU - -   /LPLWHG $SU  Transfer   $SU  Transfer   $SU   Transfer   $SU  Transfer   0D\  Transfer   0D\   Transfer   0D\   Transfer   0D\  Transfer   -XQ   Transfer  

Board’s Report 71 Sl. Name of the top 10 Shareholding at the beginning of the year Date wise Increase / Decrease in Shareholding &XPXODWLYH6KDUHKROGLQJ No. shareholders during the year specifying the reasons for during the year (01-04- increase / decrease (e.g allotment / transfer/ 2018 to 31-03-2019) bonus/ sweat equity etc.) No. of Shares at the % of total Date Increase / Reason No. of % of total beginning (01-04- shares of the Decrease in Shares shares of the 2018) and end of the company shareholding Company year (31-03-2019) -XQ  Transfer   -XQ   Transfer   -XQ  Transfer   -XQ   Transfer   -XO  Transfer   -XO   Transfer   -XO   Transfer   -XO   Transfer   $XJ  Transfer   $XJ  Transfer   $XJ   Transfer   $XJ  Transfer   $XJ   Transfer   6HS  Transfer   6HS  Transfer   6HS   Transfer     6HS - Date of   Separation 12 Vijaykumar   $SU - -   0DQJWXUDP.KHPDQL $XJ  Transfer   6HS  Transfer     0DU -   13 0DKHVK'LQNDU9D]H   $SU - -   $XJ   Transfer   1RY   Transfer   1RY  Transfer   1RY   Transfer   1RY   Transfer   -DQ  Transfer   )HE   Transfer     0DU   1RWLQWKHOLVWRI7RSVKDUHKROGHUVDVRQ7KHVDPHKDVEHHQUHIOHFWHGDERYHVLQFHWKHVKDUHKROGHUZDVRQH RIWKH7RSVKDUHKROGHUVGXULQJWKH\HDUHQGHGVW0DUFK

Y  6KDUHKROGLQJRI'LUHFWRUVDQG.H\0DQDJHULDOSHUVRQQHO Sr. Name of the Directors and KMP Director Shareholding at the beginning of Shareholding at the end of the % change in No. ,GHQWLͤFDWLRQ1R the year as at 01.04.2018 year as at 31.03.2019 shareholding (DIN) No. of Shares % of total shares No. of shares % of total during the year of the Company held shares of the Company Directors 1 -DL3UDNDVK$JDUZDO &KDLUPDQ :7'        Raju Bista (Managing Director)  - - - - - 3 Urmil Agarwal      -  Vinay Surya*      - 5 Ravinder Kumar Narang  - - - - -  Krishan Kumar Narula  - - - - -  7DUD6DQNDU6XGKLU%KDWWDFKDU\D  - - - - -  Sudhanshu Kumar Awasthi  - - - - -  Surendra Singh Khurana        Shivani Singla^  - - - - - 11 6XQLO6LNND        .DXVWXEK1DUVLQK.DUPDUNDU  - - - - - 13 0XNHVK7ULSDWKL  - - - - -  8WSDO.XPDU$QLO.XPDU0XNKRSDGK\D\  - - - - -

72 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

Sr. Name of the Directors and KMP Director Shareholding at the Shareholding at the end of % change in No. ,GHQWLͤFDWLRQ beginning of the year as at the year as at 31.03.2019 shareholding No. (DIN) 01.04.2018 during the year No. of % of total No. of % of total Shares shares of the shares held shares of the Company Company STATUTORY REPORTS REPORTS STATUTORY Key Managerial Personnel (KMPs) a 510DORR (' *URXS&)2 ------b 5DPDQMHHW6LQJK &(2/LJKWLQJ  ------Consumer Durables Segment) c 7DUXQ%DOGXD &(26WHHO3LSHV 6WULSV ------FINANCIAL SECTION Segment) d %%6LQJDO 6U93 &RPSDQ\6HFUHWDU\ ------$SSRLQWHGDVDQ$GGLWLRQDO:KROHWLPH'LUHFWRURQWKH%RDUGRIWKH&RPSDQ\ZHIWK0D\DQGVXEVHTXHQWO\ DSSURYHGE\WKHVKDUHKROGHUVDWWKH$*0RQWK6HSWHPEHU

$SSRLQWHGDVDQ$GGLWLRQDO:KROHWLPH'LUHFWRURQWKH%RDUGRIWKH&RPSDQ\ZHIWK$XJXVWDQGVXEVHTXHQWO\ DSSURYHGE\WKHVKDUHKROGHUVDWWKH$*0RQWK6HSWHPEHU

5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQWK0D\

5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQQG-XQHDQGODWHUH[SLUHGRQWK-XQH

A5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQWK0DUFKDV,'%,ZLWKGUDZV1RPLQDWLRQIURPWKH%RDUGRIWKH&RPSDQ\

V. INDEBTEDNESS

Indebtedness of the Company holding interest outstanding / accrued but not due for payment

(` iin crore) Secured Loans Unsecured Loans Deposits Total Indebtedness excluding deposits ,QGHEWHGQHVVDWWKHEHJLQQLQJRIWKHͤQDQFLDO\HDU i) Principal Amount  - -  ii) Interest due but not paid - - - - iii) Interest accrued but not due  - -  Total (i+ ii+iii) 1100.50 - - 1100.50 Change in Indebtedness GXULQJWKHͤQDQFLDO\HDU

Addition  - - 

Reduction  - -  N e t C h a n g e 9 3 . 4 8 - - 9 3 . 4 8 ,QGHEWHGQHVVDWWKHHQGRIWKHͤQDQFLDO\HDU i) Principal Amount  - -  ii) Interest due but not paid - - - - iii) Interest accrued but not due  - -  Total (i+ ii+iii) 1193.98 - - 1193.98

Board’s Report 73 VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Directors , Whole Time Director and / or Manager

(` iin crore) Sr. Particulars of the Remuneration Name of MD/WTD / Manager Total No. Jai Prakash Raju Bista 9LQD\6XU\D Kaustubh N Mukesh Amount Agarwal Karmarkar $ 7ULSDWKL 1 Gross Salary ([HFXWLYH Managing Whole-time Whole-time ([HFXWLYH Chairman Director Director Director ; Non- Independent Director (a) Salary as per the provisions       FRQWDLQHGLQVHFWLRQ  RI WKH,QFRPH7D[$FW E 9DOXHRISHUTXLVLWHVXV   ------,QFRPH7D[$FW F 3URͤWVLQOLHXRIVDODU\XQGHU ------VHFWLRQ  ,QFRPH7D[$FW  2 Stock Option ------3 Sweat Equity 4 Commission DVRISURͤW   --- ------RWKHUVVSHFLI\ 5 Others (Employer’s Share of 3URYLGHQW)XQG -      Total (A)       Ceiling as per Act 17.26

,QFOXVLYHRI`&URUHRI/HDYH(QFDVHPHQW $SSRLQWHGDVDQ$GGLWLRQDO:KROHWLPH'LUHFWRURQWKH%RDUGRIWKH&RPSDQ\ZHIWK0D\DQGVXEVHTXHQWO\ DSSURYHGE\WKHVKDUHKROGHUVDWWKH$*0RQWK6HSWHPEHU $SSRLQWHGDVDQ$GGLWLRQDO:KROHWLPH'LUHFWRURQWKH%RDUGRIWKH&RPSDQ\ZHIWK$XJXVWDQGVXEVHTXHQWO\ DSSURYHGE\WKHVKDUHKROGHUVDWWKH$*0RQWK6HSWHPEHU 5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQWK0D\ B. Remuneration to Other Directors

(` iin crore) Sr. Particulars of the Name of Directors Total No. Remuneration Krishan 5DYLQGHU Tara Sankar Sudhanshu Surendra Sunil 6KLYDQLA Urmil Utpal Kumar Amount Kumar Kumar Bhattacharya Kumar Singh Sikka Singla Agarwal Mukhopadhyay Narula Narang Awasthi Khurana (` iin crore) 3 Independent Directors       -- - )HHVIRUDWWHQGLQJERDUG committee meetings Commission ------Others ------Total (1) 0.064 0.034 0.025 0.008 0.031 0.028 - - - 0.190 2WKHU1RQ([HFXWLYH ------  -  Directors )HHVIRUDWWHQGLQJERDUG committee meetings Commission ------2WKHUV ------Total (2) ------0.012 0.008 - 0.020 Total (B) = (1+2) 0.064 0.034 0.025 0.008 0.0310 0.028 0.012 0.008 - 0.210 Total Managerial - Remuneration (Sitting Fees) 2YHUDOO&HLOLQJDVSHUWKH NIL Act

74 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQQG-XQHDQGODWHUH[SLUHGRQWK-XQH A7KH6LWWLQJIHHVIRUDWWHQGLQJPHHWLQJZDVSDLGWR,'%,EDQNDQGIXUWKHU'LUHFWRUKDG5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\ RQWK0DUFKDV,'%,ZLWKGUDZV1RPLQHH'LUHFWRUIURPWKH%RDUGRIWKH&RPSDQ\ C. Remuneration to Key Managerial Personnel other than MD/ Manager/WTD

(` iin crore) REPORTS STATUTORY Sr. Particulars of Remuneration Key Managerial Personnel Total No R N Maloo Ramanjeet Singh Tarun Baldua B B Singal ED & GCFO CEO-Lighting & CEO-Steel Pipes & Sr. V.P & Company Consumer Durables Strips Segment Secretary Segment 1 Gross Salary (a) Salary as per the provisions contained in      FINANCIAL SECTION VHFWLRQ  RIWKH,QFRPH7D[$FW E 9DOXHRISHUTXLVLWHVXV  ,QFRPH7D[ - - - - - $FW F 3URͤWVLQOLHXRIVDODU\XQGHUVHFWLRQ   ,QFRPH7D[$FW - - - - - 2 Stock Option - - - - - 3 Sweat Equity - - - - - 4 Commission - DVRISURͤW - - - - -

RWKHUVVSHFLI\ - - - -

5 2WKHUV (PSOR\HU̵VVKDUHRI3URYLGHQW)XQG      Total (C) 0.8106 1.2571 1.0452 0.3877 3.5006 VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES.  7KHUHDUHQRSHQDOWLHVSXQLVKPHQWRUFRPSRXQGLQJRIRIIHQFHVGXULQJWKH\HDUHQGHGVW0DUFK

for and on behalf of the Board of Directors

J P Agarwal Place: New Delhi Chairman Dated: 21st May, 2019 DIN – 00041119

Board’s Report 75 ANNEXURE – III TO BOARD’S REPORT

FORM NO. MR-3 SECRETARIAL AUDIT REPORT [Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

TO H[WHQWRI)RUHLJQ'LUHFW,QYHVWPHQW2YHUVHDV'LUHFW THE MEMBERS ,QYHVWPHQWDQG([WHUQDOFRPPHUFLDO%RUURZLQJV

SURYA ROSHNI LIMITED (v) The Following regulations and guidelines prescribed PRAKASH NAGAR, SANKHOL XQGHUWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW BAHADURGARH, HARYANA-124507  We have conducted the secretarial audit of the compliance (a) The Securities and Exchange Board of India of applicable statutory provisions and the adherence to (Substantial Acquisition of Shares and good corporate practices by M/S SURYA ROSHNI LIMITED 7DNHRYHUV 5HJXODWLRQV (hereinafter called the Company  6HFUHWDULDO $XGLW ZDV conducted in a manner that provided us a reasonable (b) The Securities and Exchange Board of India EDVLV IRU HYDOXDWLQJ WKH FRUSRUDWH FRQGXFWVVWDWXWRU\ 3URKLELWLRQRI,QVLGHU7UDGLQJ 5HJXODWLRQV FRPSOLDQFHVDQGH[SUHVVLQJRXURSLQLRQWKHUHRQ (c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) %DVHGRQRXUYHULͤFDWLRQRIWKH&RPSDQ\̵VERRNVSDSHUV 5HJXODWLRQV(Not applicable to the Company PLQXWH ERRNV IRUPV DQG UHWXUQV ͤOHG DQG RWKHU UHFRUGV during the Audit Period) maintained by the Company and also the information SURYLGHGE\WKH&RPSDQ\LWVRIͤFHUVDJHQWVDQGDXWKRULVHG (d) The Securities and Exchange Board of India UHSUHVHQWDWLYHVGXULQJWKHFRQGXFWRIVHFUHWDULDODXGLW:H (PSOR\HH6WRFN2SWLRQ6FKHPHDQG(PSOR\HH KHUHE\UHSRUWWKDWLQRXURSLQLRQWKH&RPSDQ\KDVGXULQJ 6WRFN3XUFKDVH6FKHPH *XLGHOLQHV WKHDXGLWSHULRGFRYHULQJWKHͤQDQFLDO\HDUHQGHGRQVW 0DUFK ̸DXGLW SHULRG̹ FRPSOLHG ZLWK WKH VWDWXWRU\ (e) The Securities and Exchange Board of India provisions listed hereunder and also that the Company ,VVXHDQG/LVWLQJRI'HEW6HFXULWLHV 5HJXODWLRQV has proper Board-processes and compliance-mechanism (Not applicable to the Company during the LQ SODFH WR WKH H[WHQW LQ WKH PDQQHU DQG VXEMHFW WR WKH Audit Period) UHSRUWLQJPDGHKHUHLQDIWHU (f) The Securities and Exchange Board of India :HKDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPV (Registrars to an Issue and Share Transfer DQG UHWXUQV ͤOHG DQG RWKHU UHFRUGV PDLQWDLQHG E\ WKH $JHQWV  5HJXODWLRQV UHJDUGLQJ WKH &RPSDQ\IRUWKHͤQDQFLDO\HDUHQGHGRQVW0DUFK &RPSDQLHV$FWDQGGHDOLQJZLWKFOLHQW DFFRUGLQJWRWKHSURYLVLRQVRI (g) The Securities and Exchange Board of India 'HOLVWLQJ RI (TXLW\ 6KDUHV  5HJXODWLRQV L  7KH&RPSDQLHV $FW  WKH $FW  DQG WKH UXOHV (Not applicable to the Company during the Audit PDGHWKHUHXQGHU Period)DQG LL  7KH 6HFXULWLHV &RQWUDFWV 5HJXODWLRQ  $FW  (h) The Securities and Exchange Board of India ̴6&5$̵ DQGWKHUXOHVPDGHWKHUHXQGHU %X\EDFNRI6HFXULWLHV 5HJXODWLRQV(Not LLL  7KH'HSRVLWRULHV$FWDQGWKH5HJXODWLRQVDQG applicable to the Company during the Audit %\HODZVIUDPHGWKHUHXQGHU Period)

LY  )RUHLJQ ([FKDQJH 0DQDJHPHQW $FW  DQG :H KDYH also examined compliance with the applicable the rules and regulations made there under to the FODXVHVRIWKHIROORZLQJ

76 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

(i) Secretarial Standards issued by The Institute of IRUPHDQLQJIXOSDUWLFLSDWLRQDWWKHPHHWLQJ &RPSDQ\6HFUHWDULHVRI,QGLD All decisions at Board Meetings and Committee Meetings LL  7KH/LVWLQJ 5HJXODWLRQV DV DSSOLFDEOH HQWHUHG LQWR are carried out unanimously as recorded in the minutes of E\ WKH &RPSDQ\ ZLWK 6WRFN ([FKDQJHV DV SHU 6(%, the meetings of the Board of Directors or Committee of the (Listing Obligations and Disclosure Requirements) %RDUGDVWKHFDVHPD\EH REPORTS STATUTORY 5HJXODWLRQV We further report that there are adequate systems and During the period under review the Company has complied SURFHVVHV LQ WKH &RPSDQ\ FRPPHQVXUDWH ZLWK WKH VL]H ZLWK WKH SURYLVLRQV RI WKH $FW 5XOHV 5HJXODWLRQV and operations of the Company to monitor and ensure *XLGHOLQHV6WDQGDUGVHWFDVPHQWLRQHGDERYH FRPSOLDQFH ZLWK DSSOLFDEOH ODZV UXOHV UHJXODWLRQV DQG JXLGHOLQHV We further report that KDYLQJ UHJDUG WR WKH FRPSOLDQFH FINANCIAL SECTION system prevailing in the Company and on examination of We further report that during the audit period the Company WKHUHOHYDQWGRFXPHQWVDQGUHFRUGVLQSXUVXDQFHWKHUHRI has following major event having a major bearing on RQWHVWFKHFNEDVLVWKH&RPSDQ\KDVFRPSOLHGZLWKWKH &RPSDQ\̵VDIIDLUVLQSXUVXDQFHRIWKHDERYHUHIHUUHGODZV IROORZLQJODZVDSSOLFDEOHVSHFLͤFDOO\WRWKH&RPSDQ\ UXOHVUHJXODWLRQVJXLGHOLQHVVWDQGDUGVHWF

(a) The Explosives Act Commercial Production of 3LPE Coated Pipe Unit at Anjar- .XWFKK *XMDUDW FRPPHQFHGRQWK1RYHPEHUZLWK (b) The Indian Boilers Act DQLQVWDOOHGFDSDFLW\RI6TPWUIRU([WHUQDODQG 6TPWU,QWHUQDO&RDWLQJIRUSLSHVUDQJLQJIURP We further report that the Board of Directors of the Company ̹WR̹&RPPHQFHPHQWRIWKHDIRUHVDLG/3(&RDWLQJ LVGXO\FRQVWLWXWHGZLWKSURSHUEDODQFHRI([HFXWLYH'LUHFWRUV XQLW WKH &RPSDQ\ ZLOO EH EHQHͤWWHG E\ KLJKHU FDSDFLW\ 1RQ([HFXWLYH 'LUHFWRUV DQG ,QGHSHQGHQW 'LUHFWRUV 7KH XWLOLVDWLRQRILWVH[LVWLQJ6SLUDODQG$3,3LSHVIDFLOLWLHV changes in the composition of the Board of Directors that WRRNSODFHGXULQJWKHSHULRGXQGHUUHYLHZZHUHFDUULHGRXWLQ FRPSOLDQFHZLWKWKHSURYLVLRQVRIWKH$FW For SGS ASSOCIATES Adequate notice is given to all directors to schedule the Company Secretaries %RDUG 0HHWLQJV DJHQGD DQG GHWDLOHG QRWHV RQ DJHQGD were sent at least seven days in advance and a system D.P. Gupta Date: 21st May, 2019 M N FCS 2411 H[LVWV IRU VHHNLQJ DQG REWDLQLQJ IXUWKHU LQIRUPDWLRQ DQG Place: - New Delhi C P No. 1509 FODULͤFDWLRQVRQWKHDJHQGDLWHPVEHIRUHWKHPHHWLQJDQG

Board’s Report 77 ANNEXURE – IV TO BOARD’S REPORT

3DUWLFXODUVRI(QHUJ\&RQVHUYDWLRQ7HFKQRORJ\$EVRUSWLRQDQG)RUHLJQ([FKDQJH(DUQLQJVDQG2XWJRDVSHU6HFWLRQ  (m) read with Companies(Accounts) Rules 2014 and forming part of the Directors’ Report for the year ended 31st March, 2019.

I. CONSERVATION OF ENERGY - Saving of energy by optimisation of use of FRPPRQXWLOLWLHVE\LQWHUOLQNLQJRIXWLOLWLHV (QHUJ\ FRQVHUYDWLRQ GLFWDWHV KRZ HIͤFLHQWO\ D at various sections &RPSDQ\ FDQ FRQGXFW LWV RSHUDWLRQV 6XU\D 5RVKQL Limited has recognised the importance of energy - Saving of energy through replacement of conservation in decreasing the deleterious effects of FRQYHQWLRQDOODPSVZLWK/('/DPSV JOREDO ZDUPLQJ DQG FOLPDWH FKDQJH 7KH &RPSDQ\ - Company gone through the audit of energy KDV XQGHUWDNHQ YDULRXV HQHUJ\ HIͤFLHQW VWHSV WKDW management system for conservation of strengthen the Company’s commitment towards HQHUJ\ EHFRPLQJDQHQYLURQPHQWIULHQGO\RUJDQLVDWLRQ   $W0DODQSXU8QLWRI/LJKWLQJ'LYLVLRQ  D  (QHUJ\FRQVHUYDWLRQPHDVXUHVWDNHQ    6DYLQJRIHQHUJ\E\PRGLͤFDWLRQLQKHDWHUVDQG At Steel Pipes & Strips Segment – Bahadurgarh LPSURYLQJLQVXODWLRQLQ)7/H[KDXVWRYHQ Unit : - Saving of energy through replacement of - Saving of Power through Improving Power conventional lamps with LED Lamps IDFWRU    %\XWLOLVHORZSUHVVXUHDLUDW)7/EDNHU - Saving of energy is achieved by replacement FRPEXVWLRQVNLGHQHUJ\LVVDYHG RIIDFWRU\OLJKWVZLWK/('/LJKWV - Saving of energy is achieved by replacement    6DYLQJ LQ JDV FRQVXPSWLRQ  6&0GD\ RI OHVV HIͤFLHQW FRPSUHVVRU ZLWK QHZ DLU E\FKDQJLQJWKH)7/EDNHUIURP,QFRQHO FRPSUHVVRURI&)0LQSLSHGLYLVLRQ WXEHWRͤ[EHGW\SH

- Replacement of old boiler with New 3 TPH - Reduction of Natural Gas Consumption  VWHDPERLOHURINJFP pressure helps E\  6&0GD\ DW &DS 9LWULWH IXUQDFH E\ LQVDYLQJRIHQHUJ\ FKDQJLQJWKHRULͤFHVL]H At Steel Pipe Unit - Hindupur : - Use of Solar Energy as an alternate source - Replaced Old design motor by the Energy of energy for the reduction of carbon (IͤFLHQW0RWRUV HPLVVLRQ

- Mill power factor of plant by Integrated   $W.DVKLSXU8QLWRI/LJKWLQJ'LYLVLRQ APSFC Panels    6DYLQJRIHQHUJ\E\SURYLGLQJ/3DLUVXSSO\    +LJKO\HIͤFLHQW,(JUDGHPRWRUVDUHXVHG to HID Plant from Compressor house ZKLFKDUHPRUHHIͤFLHQWDQGSRZHUVDYLQJ LQVWHDG RI UXQQLQJ  .: %ORZHU LQ +' 3ODQW - Illumination system of LED is used in the plant resulted in saving of power - Saving of energy by installation of Inverter $&LQVWHDGRIFRQYHQWLRQDO$&LQ3&%SODQW  $W6WHHO3LSH8QLW$QMDU *XMDUDW.XWFKK  - Saving of energy through replacement  ,QVWDOOLQJRI 6RODU 3RZHU (QHUJ\ 0: WR RI /*3 836 3DQHO URRP ZLQGRZ $& ZLWK VDYHHQHUJ\ ,QYHUWRU$&

- Replaced high energy consuming electrical - Installed Overhead Cooling duct for human motors with compatible lower energy LQ7SODQWE\VWRSSDJHRI.: +3  FRQVXPLQJPRWRUV DQGWKXVVDYHVHQHUJ\

78 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

   5HSODFHGH[KDXVWGXFWEORZHU+3ZLWK XVH RI ODWHVW DQG EHWWHU WHFKQLTXHV +3LQ3&%SODQWDQGWKXVVDYHVHQHUJ\ Efforts are constantly being made to PDNH WKH PD[LPXP XVH RI WKH DYDLODEOH b) Steps taken by the Company for utilising LQIUDVWUXFWXUHDWWKHVDPHWLPHLQQRYDWLQJ alternate source of energy :

QHZ WHFKQLTXHV WR EULQJ DERXW HIͤFLHQF\ REPORTS STATUTORY Company is exploring options to use Solar Based DV ZHOO DV HFRQRP\ LQ GLIIHUHQW DUHDV (QHUJ\DVDQDOWHUQDWHVRXUFHRIHQHUJ\LQIXWXUH Employees are given appropriate training of  F  7KH&DSLWDO,QYHVWPHQWRQHQHUJ\FRQVHUYDWLRQ DQGRQWKHMREWRHQDEOHWKHPWRDFKLHYH equipment’s : WKHSODQQHGSHUIRUPDQFH

Investment of `&URUHRQHQHUJ\FRQVHUYDWLRQ   E  %HQHͤWVGHULYHG DV D UHVXOW RI WKH DERYH equipment’s are made by the Company during the HIIRUWV HJ SURGXFW LPSURYHPHQW FRVW FINANCIAL SECTION \HDU UHGXFWLRQ SURGXFW  GHYHORSPHQW LPSRUW II. TECHNOLOGY ABSORPTION VXEVWLWXWLRQHWF 7KHUH ZHUH YDULRXV EHQHͤWV GHULYHG DV Efforts made in technology absorption as per Rules: D UHVXOW RI WKH HIIRUWV OLVWHG DERYH VRPH   5HVHDUFKDQG'HYHORSPHQW 5 ' of them included better utilisation of the   D  6SHFLͤFDUHDVLQZKLFK5 'FDUULHGRXWE\ DYDLODEOH UHVRXUFHV SURGXFW LPSURYHPHQW the Company : DQG GHYHORSPHQW FRVW UHGXFWLRQ EHWWHU 'XULQJ WKH \HDU XQGHU UHYLHZ GHYHORSPHQW  RYHUDOOHIͤFLHQF\ FRPSOHWLRQRISURGXFWVSURMHFWVLQWKHͤHOGRI c) In case of imported technology (imported HQHUJ\HIͤFLHQW/LJKW6RXUFHVDQG/XPLQDLUHV during the last 3 years reckoned from the LWVDSSOLFDWLRQLQFOXGLQJ/('/LJKWLQJ6\VWHP EHJLQQLQJRIWKHͤQDQFLDO\HDU Nil KDVEHHQFDUULHGRXW III. FOREIGN EXCHANGE EARNINGS AND OUTGO   E  %HQHͤWVGHULYHGDVDUHVXOWRIDERYH5 '  D  $FWLYLWLHVUHODWLQJWRH[SRUWVLQLWLDWLYHVWDNHQWR 'HYHORSHG  PRGLͤHG HQHUJ\ HIͤFLHQW LQFUHDVH H[SRUW GHYHORSPHQW RI QHZ PDUNHWV HQYLURQPHQWIULHQGO\OLJKWLQJSURGXFWV IRUSURGXFWVDQGVHUYLFHVDQGH[SRUWSODQV   0DMRULQLWLDWLYHVZHUHWDNHQWRERRVWWKHH[SRUWV c) Future Plan of action : RIWKH&RPSDQ\6RPHRIWKHPLQFOXGHG Research and Development activities in - Emphasis has been given on Foreign IXWXUH DW D PRGHUQ ZRUOGFODVV LQKRXVH 5HVHDUFK 'HYHORSPHQW&HQWUHLQ1RLGDLV Traveling of Export Executives and Directors LQWKHͤHOGRIHQHUJ\HIͤFLHQW/LJKW6RXUFHV IRUGHYHORSPHQWRIQHZPDUNHWV DQG/XPLQDLUHV LWVDSSOLFDWLRQLQFOXGLQJ - The Company has participated in the /('/LJKWLQJ6\VWHP conferences and exhibitions organised in YDULRXVIRUHLJQFRXQWULHV d) Expenditure on R&D : b) Total foreign exchange used and earned (` in Capital Expenditure during the year is ` Crore)  FURUH DQG 5HYHQXH ([SHQGLWXUH LV `   8VHG 463.37(DUQHG764.29 3.16 crore for and on behalf of   7HFKQRORJ\DEVRUSWLRQDGDSWDWLRQ LQQRYDWLRQ the Board of Directors a) Efforts, in brief, made towards technology J P A g a r w a l DEVRUSWLRQDGDSWDWLRQ LQQRYDWLRQ Date: May 21, 2019 Chairman 0DMRU LQLWLDWLYHV DUH EHLQJ WDNHQ WR Place: - New Delhi DIN – 00041119 XSJUDGH WKH YDULRXV SURFHVVHV E\ PDNLQJ

Board’s Report 79 ANNEXURE – V TO BOARD’S REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITIES (CSR) ACTIVITIES FOR THE FINANCIAL YEAR 2018-19

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COMPOSITION:

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S. No. Name Category Designation

1 0U-DL3UDNDVK$JDUZDO Member &KDLUPDQ :KROHWLPH'LUHFWRU

 0U5DMX%LVWD Member Managing Director

3 0U.ULVKDQ.XPDU1DUXOD Member Independent Director

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(` in crore)

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0DQQHULQZKLFKDPRXQWVSHQWGXULQJWKHͤQDQFLDO\HDU  Detailed Overleaf

80 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

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Board’s Report 81 (` in crore) (1) (2) (3) (4) (5) (6) (7) (8) Sr. CSR project or Sector in which Projects or programs Amount Amount spent &XPXODWLYH Amount No. DFWLYLW\LGHQWLͤHG the Project is (1) Local area or other outlay on the projects expenditure spent: Direct FRYHUHG (budget) or Programs upto to the or through (2) Specify the State and district project or Sub¬heads: reporting implementing where projects or programs was programs (1) Direct period DJHQF\ undertaken wise expenditure on projects or programs.  2YHUKHDGV 2. NATUROPATHY PROMOTING NATUROPATHY WORKSHOP    Implementing EXPENSES PREVENTIVE ,17(51$7,21$/'$<2)<2*$ Agency- +($/7+&$5(DELHI SURYA PROMOTE YOGA FOUNDATION 3. OTHER DELHI    Implementing ADMINISTRATION Agency- EXPENSES SURYA FOUNDATION Total  2.57 2.57  &RPSDQ\KDGVSHQWGXULQJWKH\HDUWKHDQDPRXQWRI` FURUHRQFRUSRUDWHVRFLDODFWLYLWLHVEHLQJQRWOHVVWKDQ RIWKHDYHUDJHQHWSURͤWVRIWKH&RPSDQ\PDGHGXULQJWKHWKUHHLPPHGLDWHO\SUHFHGLQJͤQDQFLDO\HDUVDVUHTXLUHG XQGHUWKHSURYLVLRQVRIVHFWLRQ  RIWKH&RPSDQLHV$FW1RDPRXQWZDVOHIWXQVSHQWGXULQJWKH\HDUXQGHU UHYLHZRQFRUSRUDWHVRFLDOUHVSRQVLELOLW\DFWLYLWLHV

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K K Narula Raju Bista Chairman – CSR Committee Managing Director (DIN – 00098124) (DIN – 01299297)

for and on behalf of the Board of Directors J P Agarwal Place : New Delhi Chairman Dated : 21st May, 2019 DIN-00041119

82 ANNUAL REPORT 2018-19 ANNEXURE – VI TO BOARD’S REPORT CORPORATE OVERVIEW CORPORATE

FORM NO. AOC - 2

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(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) STATUTORY REPORTS REPORTS STATUTORY

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for and on behalf of the Board of Directors J P Agarwal Place : New Delhi Chairman Dated : 21st May, 2019 DIN-00041119

Board’s Report 83 ANNEXURE – VII TO BOARD’S REPORT ON CORPORATE GOVERNANCE

1. CORPORATE GOVERNANCE PHILOSOPHY Non-Executive Directors on the Board is more or equal The ethical values is the foundation of Company’s WRRIWKH%RDUGVWUHQJWKDWDQ\SRLQWRIWLPH$OO JRYHUQDQFHSKLORVRSK\ZKLFKRYHUWKHSDVW\HDUV Independent Non-Executive Directors possess the of the Company’s existence has become a part of its UHTXLVLWH TXDOLͤFDWLRQ DQG DUH YHU\ H[SHULHQFHG LQ FXOWXUH &RPSDQ\̵V FRPPLWPHQW WRZDUGV DGRSWLRQ WKHLU UHVSHFWLYH ͤHOGV DQG IXUWKHU FRPSO\ ZLWK WKH of best corporate governance practices goes beyond OHJDO UHTXLUHPHQWV IRU EHLQJ ̸LQGHSHQGHQW̹ 1HLWKHU compliance of the law and endeavors to embrace Independent Directors nor their relatives do not responsibility for corporate actions and impact of its have any pecuniary relationships or transactions LQLWLDWLYHVRQDOOVWDNHKROGHUV$5HSRUWRQFRPSOLDQFH either with the Company or its associate or with with the Corporate Governance provisions as WKH SURPRWHUVPDQDJHPHQW WKDW PD\ DIIHFW prescribed under Chapter IV read with Schedule WKHLU MXGJPHQW LQ DQ\ PDQQHU 7KH QRQH[HFXWLYH V of the Securities and Exchange Board of India LQGHSHQGHQW GLUHFWRUV RI WKH &RPSDQ\ VDWLVͤHG WKH (Listing Obligations and Disclosure Requirement) GHͤQLWLRQ RI LQGHSHQGHQW GLUHFWRUV DV SURYLGHG LQ 5HJXODWLRQVUHIHUUHGWRDV̸/LVWLQJ5HJXODWLRQV̹ 6HFWLRQ  RIWKH&RPSDQLHV$FWUHDGZLWK LVJLYHQEHORZ 5HJXODWLRQ   E  6(%, /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV 2. BOARD OF DIRECTORS  7KH&RPSRVLWLRQ RI WKH 'LUHFWRUV RQ WKH %RDUG DUH a. Composition and Category of Directors as on 31st VXPPDULVHGDVEHORZ March, 2019 The Board consists of 11 Directors as on 31st Total No. of Directors 11 Sh. Jai Prakash Agarwal 0DUFK  7KH FRPSRVLWLRQ RI WKH %RDUG LV LQ ([HFXWLYH&KDLUPDQ Managing Director Sh. Raju Bista FRQIRUPLW\ZLWK5HJXODWLRQUHDGZLWKFODXVH&  No. of Independent 6 (> 50% of Board (a) of Schedule V of SEBI (Listing Obligations and Directors Strength 'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV7KHGD\ &KDLUPDQEHLQJ([HFXWLYH WRGD\PDQDJHPHQWRIWKH&RPSDQ\ZDVFDUULHGE\ 1RRI1RQ([HFXWLYH 7 ( > 50% of Board ([HFXWLYH̰1RQ,QGHSHQGHQW'LUHFWRUV&KDLUPDQLV Directors Strength) an Executive Director and the number of Independent

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84 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

 $SSRLQWHGDVDQ$GGLWLRQDO,QGHSHQGHQW'LUHFWRURQWKH%RDUGRIWKH&RPSDQ\IURPWK)HEUXDU\DQGVXEVHTXHQWO\ shareholders at the AGM of the Company approved the appointment as an Independent Director for a consecutive period of ͤYH\HDUVIRUWKHͤUVWWHUPZHIWK6HSWHPEHU A 5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQWK0DUFKDV,'%,%DQNZLWKGUDZV1RPLQHH'LUHFWRUIURPWKH%RDUGRIWKH &RPSDQ\ b. Attendance of each Director at Board Meetings held during the year 2018-19 and last AGM REPORTS STATUTORY  7KHQDPHVRIWKH'LUHFWRUVRQWKH%RDUGDQGWKHLUDWWHQGDQFHDW%RDUGPHHWLQJVGXULQJWKH\HDUDQGDWWKH ODVW$*0DUHDVXQGHU

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86 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

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90 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

Sr. Topics and Statements Rating No. (on a scale of 1-5, 5 is highest)  Represents the interests of shareholders and focuses on enhancing shareholder YDOXH STATUTORY REPORTS REPORTS STATUTORY  *LYHV IDLU FKDQFH WR RWKHU PHPEHUV WR FRQWULEXWH SDUWLFLSDWH DFWLYHO\ LQ WKH GLVFXVVLRQDQGLVFRQVHQVXVRULHQWHG  3URYLGH)HHGEDFNDQGJXLGDQFHWRWRSPDQDJHPHQWRQDUHDVRIEXVLQHVVVWUDWHJ\ JRYHUQDQFHDQGULVN  6XIͤFLHQWO\&KDOOHQJHVPDQDJHPHQWWRVHWDQGDFKLHYHVWUHWFKJRDOV  Maintain effective and successful relationship with fellow Board members and FINANCIAL SECTION VHQLRUPDQDJHPHQW

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PERFORMANCE EVALUATION:

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5. DETAILS OF REMUNERATION TO ALL DIRECTORS

a. Pecuniary Relationships:

None of the Non-Executive Directors of the Company have any pecuniary relationship or transactions with the &RPSDQ\H[FHSWIRUVLWWLQJIHHVSDLGWRWKHPIRUDWWHQGLQJ%RDUGPHHWLQJVRU&RPPLWWHHPHHWLQJVWKHUHRI

Corporate Governance 91 E 7KHGHWDLOVRIUHPXQHUDWLRQVLWWLQJIHHVSDLGWRWKH([HFXWLYH'LUHFWRUV1RQ([HFXWLYH'LUHFWRUVGXULQJWKH ͤQDQFLDO\HDUDUHDVXQGHU (` in crore)

Name Director Salary Perquisites & Commission Bonuses, Sitting Fees ,GHQWLͤFDWLRQ Allowances Stock (excluding No. (DIN) Options, VHUYLFHWD[  Pensions

6K-3$JDUZDO   Nil  Nil 1$ (Executive Chairman)

6K5DMX%LVWD   Nil  Nil 1$ (Managing Director)

6K9LQD\6XU\D   Nil Nil Nil 1$ (Whole-time Director)*

6K.DXVWXEK1DUVLQK.DUPDUNDU   Nil Nil Nil 1$ (Whole-time Director)**

6K0XNHVK7ULSDWKL   Nil Nil Nil 1$ (Executive Director)

6PW8UPLO$JDUZDO  Nil Nil Nil Nil 

6K.ULVKDQ.XPDU1DUXOD  Nil Nil Nil Nil 

6K5DYLQGHU.XPDU1DUDQJ  Nil Nil Nil Nil 

6K7DUDVDQNDU6XGKLU  Nil Nil Nil Nil  Bhattacharya

6K6XGKDQVKX.XPDU$ZDVWKL  Nil Nil Nil Nil 

6K6XUHQGUD6LQJK.KXUDQD  Nil Nil Nil Nil 

6K6XQLO6LNND  Nil Nil Nil Nil 

,'%,%DQN 1RPLQHH'LUHFWRU  Nil Nil Nil Nil 

 $SSRLQWHGDVDQ$GGLWLRQDO:KROHWLPH'LUHFWRURQWKH%RDUGRIWKH&RPSDQ\ZHIWK0D\DQGVXEVHTXHQWO\DSSURYHG E\WKHVKDUHKROGHUVDWWKH$*0RQWK6HSWHPEHU

 $SSRLQWHGDV DQ $GGLWLRQDO :KROHWLPH 'LUHFWRU RQ WKH %RDUG RI WKH &RPSDQ\ ZHI WK $XJXVW  DQG VXEVHTXHQWO\ DSSURYHGE\WKHVKDUHKROGHUVDWWKH$*0RQWK6HSWHPEHU

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Name Director Performance Performance 6HUYLFH&RQWUDFWV Notice Period 6HYHUDQFH ,GHQWLͤFDWLRQ Linked Criteria Fees (`) No. (DIN) ,QFHQWLYHV 6K-3$JDUZDO  1$ 1$ \HDUVIURPVW-DQXDU\ 0RQWKV Nil (Executive Chairman) LHXSWRVW'HFHPEHU 6K5DMX%LVWD  1$ 1$ \HDUVIURPWK1RYHPEHU 0RQWKV Nil (Managing Director)  LHXSWRWK 1RYHPEHU 6K9LQD\6XU\D  1$ 1$ \HDUVIURPWK0D\ LH 0RQWKV Nil (Whole-time Director) XSWRWK0D\ 6K.DXVWXEK1DUVLQK  1$ 1$ \HDUVIURPWK$XJXVW 3 Months Nil .DUPDUNDU LHXSWRWK$XJXVW (Whole-time Director)

92 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

7KH&RPSDQ\KDVQRWLVVXHG6WRFNRSWLRQV (623V WRDQ\RILWV'LUHFWRUV 1XPEHURI6KDUHVKHOGE\1RQ([HFXWLYH'LUHFWRUV6KUL6XQLO6LNNDKROGVHTXLW\VKDUHVDQG6KUL6XUHQGUD6LQJK .KXUDQDLVKROGLQJVKDUHVDVRQVW0DUFK 6. STAKEHOLDER’S GRIEVANCE COMMITTEE STATUTORY REPORTS REPORTS STATUTORY a) Composition / name of members and chairperson The Committee headed by Shri Krishan Kumar Narula (Non-executive – Independent Director) has the mandate to UHYLHZDQGUHGUHVVVKDUHKROGHUJULHYDQFHV7KH&RPPLWWHHPHWWLPHVGXULQJWKH\HDURQ DQGDQGWKHDWWHQGDQFHRI0HPEHUVDWWKH0HHWLQJZDVDVIROORZV

Names of the Members 'LUHFWRU,GHQWLͤFDWLRQ1R Position No. of Meetings Attended 6K.ULVKDQ.XPDU1DUXOD  Chairman  FINANCIAL SECTION 6K5DYLQGHU.XPDU1DUDQJ  Member  6K5DMX%LVWD  Member 

 7KHTXRUXPIRUWKH&RPPLWWHHLVWZRPHPEHUV7KHPLQXWHVRIWKH&RPPLWWHHZHUHSODFHGEHIRUHWKH%RDUG

b) 1DPH 'HVLJQDWLRQRI&RPSOLDQFH2IͤFHU : Sh. B.B.Singal (Sr.V.P &Company Secretary) c) 1XPEHURIVKDUHKROGHUV̵FRPSODLQWVUHFHLYHGXSWRVW0DUFK : 12 d) 1XPEHURIFRPSODLQWVQRWVROYHGWRWKHVDWLVIDFWLRQRIWKHVKDUHKROGHUV : Nil e) Number of pending complaints : Nil

7. GENERAL BODY MEETINGS

a) Location and Time , where last three Annual General Meetings held   7KHODVWWKUHH$QQXDO*HQHUDO0HHWLQJVZHUHKHOGRQWKHIROORZLQJGDWHV

  

 DWWKH5HJLVWHUHG2IͤFHRIWKH&RPSDQ\DW3UDNDVK1DJDU6DQNKRO%DKDGXUJDUK̰DWDP

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c) Special Resolutions passed last year through Postal Ballot – Details of Voting Pattern No resolution was passed through postal ballot last year

d) Person who conducted the Postal Ballot exercise: Not Applicable. e) Whether any Special Resolution is proposed to be conducted through Postal Ballot – NIL f) Procedure for Postal Ballot – As no resolution was passed through Postal Ballot last year hence the same is not applicable. 8. MEANS OF COMMUNICATION a) 4XDUWHUO\UHVXOWVVHQWWRHDFKVKDUHKROGHUVUHVLGHQFH  No b) Newspapers in which quarterly results normally published  Business Standard c) :HEVLWHZKHUHUHVXOWVRURIͤFLDOQHZVDUHGLVSOD\HG  www.surya.co.in d) :KHWKHULWDOVRGLVSOD\VRIͤFLDOQHZVUHOHDVHV  Yes (if any) e) Presentations made to institutional investors or to the analysts  Yes (if any)

Corporate Governance 93 9. GENERAL SHAREHOLDER INFORMATION a) AGM : Date Time and Venue  WK6HSWHPEHUDWDP

3UDNDVK1DJDU6DQNKRO%DKDGXUJDUK+DU\DQD b) Financial Year  1st April to 31st March c) 'LYLGHQGSD\PHQWGDWH  WK6HSWHPEHU d) Listing on Stock Exchanges  The securities of the Company were listed on the following 6WRFN([FKDQJHVGXULQJWKHͤQDQFLDO\HDU The Stock Exchange, Mumbai The National Stock Exchange of India Ltd 5RWXQGD%XLOGLQJ'DODO6WUHHW ([FKDQJH3OD]D%DQGUD.XUOD )RUW0XPEDL̰ &RPSOH[%DQGUD0XPEDL̰

The Company has paid the Annual Listing Fees to the Stock Exchanges for the Financial Year 2018-19 and 2019-20

e. Stock Code National Stock Exchange Bombay Stock Exchange ISIN (TXLW\6KDUHV6\PERO&RGH SURYAROSNI  'HPDWHULDOLVHG ,1($

 3K\VLFDO f) Market Price Data:

MONTH NSE BSE HIGH (`) LOW (`)HIGH (`) LOW (`) $SULO     0D\     -XQH     -XO\     $XJXVW     6HSWHPEHU     2FWREHU     1RYHPEHU     'HFHPEHU     -DQXDU\     )HEUXDU\     0DUFK    

94 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

g) Performance in comparison to BSE SENSEX

450.00 39000 400.00 38000 350.00 REPORTS STATUTORY 37000 300.00 250.00 36000 200.00 35000 150.00 24000 FINANCIAL SECTION Apr 18 May 18 May Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 1RY Dec 18 Jan 19 Feb 19 Mar 19

SURYA SENSEX

h) Suspension of trading during the year (if any) : NIL  L  5HJLVWUDU   0$66HUYLFHV/LPLWHG   &RPPRQIRUERWK3K\VLFDODQG   7QG)ORRU2NKOD,QGXVWULDO$UHD (OHFWURQLFVKDUHUHJLVWU\  3KDVH̰,,1HZ'HOKL̰ Tel. :   Fax :   E-Mail : LQIR#PDVVHUYFRP j) Share Transfer System   7KH&RPSDQ\̵VVKDUHWUDQVIHUVDUHKDQGOHGE\0$66HUYLFHV/WG5HJLVWUDUDQG7UDQVIHU$JHQWV 57$ 7KHVKDUHV UHFHLYHGLQSK\VLFDOPRGHE\WKH&RPSDQ\57$DUHWUDQVIHUUHGH[SHGLWLRXVO\SURYLGHGWKHGRFXPHQWVDUHFRPSOHWH DQGVKDUHVXQGHUWUDQVIHUDUHQRWXQGHUGLVSXWH&RQͤUPDWLRQLQUHVSHFWRIWKHUHTXHVWIRUGHPDWHULDOLVDWLRQRI VKDUHVLVVHQWWRWKHUHVSHFWLYHGHSRVLWRULHV̰1DWLRQDO6HFXULWLHV'HSRVLWRU\/LPLWHG&HQWUDO'HSRVLWRU\6HUYLFHV ,QGLD /LPLWHGZLWKLQGD\V1RQHRIWKHWUDQVIHUZDVSHQGLQJIRUPRUHWKDQDIRUWQLJKWDVRQVW0DUFK

k) Distribution of Shareholding Share Holding of Shareholders Shares Nominal Value of. ` Number % of Total Number % of Total                                     $ERYH     TOTAL 24137 100.000 5,44,08,974 100.000

Corporate Governance 95 Shareholding Pattern as at 31.03.2019 CATEGORY No. of Shares held % age of Paid-up Capital Promoters (including Persons Acting in Concert)   Institutional Investors   Bodies Corporate   Individuals   NRIs and OCBs   Others - Clearing Members   NBFCs Registered with RBI   Trust   ,(3)$F   TOTAL 5,44,08,974 100.00

Graphical Representation of the Shareholding

PERCENTAGE

0.642 0.629

promoters (Including person Acting in concert) 19.052 Institutional Investors Bodies Corporate Individuals 13.061 62.901 NRIs and OCBs Other (Clearing Members, NBFCs, Trust, 3.715 Unclaimed Suspense A/c)

l) Dematerialisation of Shares & Liquidity 7KH&RPSDQ\KDVREWDLQHGHOHFWURQLFFRQQHFWLYLW\ZLWKWKH 1DWLRQDO6HFXULWLHV'HSRVLWRU\/WG 16'/ DQGWKH&HQWUDO 'HSRVLWRU\ 6HUYLFHV ,QGLD  /WG &'6/  IRU GHPDW IDFLOLW\ ,6,1,1($ $VRQVW0DUFK HTXLW\VKDUHVEHLQJRIWKH&RPSDQ\̵VWRWDOSDLGXS HTXLW\VKDUHVKDGEHHQGHPDWHULDOLVHG7KHVKDUHVRIWKH &RPSDQ\DUHUHJXODUO\WUDGHGDWWKH16(DQG%6( m) Outstanding GDRs /ADRs /Warrants or any 1LO &RQYHUWLEOH LQVWUXPHQWV FRQYHUVLRQ GDWH  OLNHO\ impact on equity n) Commodity price risk or Foreign Exchange risk and 3OHDVHUHIHUWR0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV KHGJLQJDFWLYLWLHV 5HSRUWIRUWKHVDPH

96 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

o) Plant Locations Steel Pipes & strips Units : Ð3UDNDVK1DJDU6DQNKRO%DKDGXUJDUK   +DU\DQD̰ Ð3ORW1R3WR3*KLURQJL,QGXVWULDO$UHD 0DODQSXU'LVW%KLQG 03

Ð*RODSXUDP,QGXVWULDO$UHD+LQGXSXU REPORTS STATUTORY 'LVW$QDQWSXU $3 Ð6XUYH\1R 9LOODJH%KXYDG7DOXND̰ $QMDU'LVW.XWFK$QMDṴ %KXM *XMDUDW Lighting Units : ÐNP6WRQH.DVKLSXU0RUDGDEDG5RDG .DVKLSXṴ 8WWDUDNKDQG 

Ð3ORW1R%DODML,QGXVWULDO(VWDWH FINANCIAL SECTION 0DKXDNKHUJDQM.DVKLSXU'LVWULFW861DJDU8WWDUDNKDQG Ð - 0DODQSXU,QGXVWULDO$UHD0DODQSXU'LVWW %KLQG 03  p) Address for correspondence : SR. V.P & Company Secretary 6XU\D5RVKQL/LPLWHG3DGPD7RZHṴ,5DMHQGUD3ODFH 1HZ'HOKL̰ 7HO   )D[   (0DLOFV#VXU\DLQ LQYHVWRUJULHYDQFHV#VURVKQLFRP T &UHGLW5DWLQJVREWDLQHGDORQJZLWKDQ\UHYLVLRQ : CARE A1 for Short term Bank Facilities CARE A+ for Long term Bank Facilities CARE A1+ (SO) for Commercial Papers

10. OTHER DISCLOSURES

D  7KHVHQLRU PDQDJHPHQW KDV PDGH GLVFORVXUHV WR WKH ERDUG UHODWLQJ WR DOO PDWHULDO ͤQDQFLDO DQG FRPPHUFLDO WUDQVDFWLRQV 7KHUH DUH QR PDWHULDOO\ VLJQLͤFDQW UHODWHG SDUW\ WUDQVDFWLRQV WKDW PD\ KDYH SRWHQWLDO FRQIOLFW ZLWK WKH LQWHUHVW RI WKH &RPSDQ\ DW ODUJH 7KH &RPSDQ\ KDV IRUPXODWHG D SROLF\ RQ GHDOLQJ ZLWK WKH 5HODWHG Party transactions for determining the Material Related Party Transactions and necessary approval of the Audit &RPPLWWHHDQGWKH%RDUGRI'LUHFWRUVZHUHWDNHQZKHQHYHUUHTXLUHGLQDFFRUGDQFHZLWKWKHSROLF\

b) The Company has complied with all applicable requirements prescribed by the regulatory and statutory authorities LQFOXGLQJ6WRFN([FKDQJHVDQG6(%,GXULQJWKHSUHFHGLQJWKUHHͤQDQFLDO\HDUVRQDOOPDWWHUVUHODWHGWRFDSLWDO PDUNHWDQGQRSHQDOWLHVVWULFWXUHVLQWKLVUHVSHFWKDYHEHHQLPSRVHGRQWKH&RPSDQ\

c) Personnel of the Company have direct access to the management as the Company has established Vigil Mechanism for directors and employees to report concerns about unethical EHKDYLRXUDFWXDOIUDXGRUVXVSHFWHGIUDXGRUYLRODWLRQRIWKH&RPSDQ\̵VFRGHRIFRQGXFWRU HWKLFVSROLF\1RSHUVRQQHOKDVEHHQGHQLHGDFFHVVWRWKH$XGLW&RPPLWWHH7KH:KLVWOH%ORZHU 3ROLF\ZDVGXO\SRVWHGRQWKH:HEVLWHRIWKH&RPSDQ\DWWKHIROORZLQJOLQNhttp://www.surya. co.in/Content/Images/uploaded/whistle-blower-policy/whistle-blower-policy.pdf

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e) Web link where policy for determining ‘material’ subsidiaries is disclosed : The policy for determining material subsidiaries has been posted on the website of the Company at the IROORZLQJ OLQN http://www.surya.co.in/Content/Images/uploaded/other-policy/Policy-for- Determining-Material-Subsidiary.pdf

Corporate Governance 97 f) Web link where policy on dealing with related party transactions: The Company has formulated a policy on dealing with the Related Party transactions for determining the Material Related Party Transactions and necessary approval of the audit committee and the Board of Directors were WDNHQZKHQHYHUUHTXLUHGLQDFFRUGDQFHZLWKWKHSROLF\7KHGHWDLOVRI5HODWHG3DUW\7UDQVDFWLRQ 3ROLF\DUHGLVVHPLQDWHGLQWKHZHEVLWHDWWKHIROORZLQJOLQN http://www.surya.co.in/Content/ Images/uploaded/related-party-transaction-policy/Related%20Party%20Transaction%20 Policy.pdf

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I. Disclosure of Website in terms of Listing Agreement Items Compliance status (Yes /No / N.A) Details of Business Yes

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  Nil NIL   Yes

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100 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE

SURYA CODE OF CONDUCT

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Jai Prakash Agarwal Raju Bista Tarun Baldua Ramanjit Singh Place : New Delhi Chairman Managing Director CEO CEO Dated : 21st May, 2019 DIN: 00041119 DIN -01299297 (Steel Operations) (Lighting Operations)

INDEPENDENT AUDITORS’ CERTIFICATE

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For Ashok Kumar Goyal & Co. Chartered Accountants Firm Registration No. 002777N

Ashok Kumar Partner, FCA Place : New Delhi Membership No. 017644 Dated : 21st May, 2019

102 ANNUAL REPORT 2018-19 ANNEXURE – VIII

TO BOARD’S REPORT OVERVIEW CORPORATE

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Corporate Governance 103 ANNEXURE-IX TO BOARD REPORT

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104 ANNUAL REPORT 2018-19 CORPORATE OVERVIEW CORPORATE STATEMENT SHOWING DETAILS OF EMPLOYEES OF THE COMPANY:

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for and on behalf of the Board of Directors J P Agarwal Place : New Delhi Chairman Dated : 21st May, 2019 DIN-00041119

Corporate Governance 105 Financial Section INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SURYA ROSHNI LIMITED

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108 ANNUAL REPORT 2018-19 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SURYA ROSHNI LIMITED (Contd.)

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,QGHSHQGHQW$XGLWRUV̵5HSRUW 113 %$/$1&(6+((7 AS AT 31st MARCH, 2019

(`LQFURUH Particulars Note As at As at No. 31st March, 2019 31st March, 2018 I ASSETS 1 Non-current assets a 3URSHUW\SODQWDQGHTXLSPHQW    E &DSLWDOZRUNLQSURJUHVV    F ,QYHVWPHQWLQ6XEVLGLDU\    d )LQDQFLDODVVHWV i 2WKHUͤQDQFLDODVVHWV    e 2WKHUQRQFXUUHQWDVVHWV    1,166.51 1,109.89 2 Current assets a ,QYHQWRULHV    E )LQDQFLDODVVHWV i 7UDGHUHFHLYDEOHV    ii &DVKDQGFDVKHTXLYDOHQWV    iii %DQNEDODQFHVRWKHUWKDQ LL DERYH    iv 2WKHUͤQDQFLDODVVHWV    F &XUUHQWWD[DVVHWV QHW    d 2WKHUFXUUHQWDVVHWV    1,862.25 1,745.51 Total Assets 3,028.76 2,855.40 II EQUITY AND LIABILITIES Equity (TXLW\VKDUHFDSLWDO    2WKHUHTXLW\    1,151.93 1,047.32 LIABILITIES 1 Non-current liabilities a )LQDQFLDOOLDELOLWLHV i %RUURZLQJV    ii 2WKHUͤQDQFLDOOLDELOLWLHV    E 3URYLVLRQV    F 'HIHUUHGWD[OLDELOLWLHV QHW    475.95 493.69 2 Current liabilities a )LQDQFLDOOLDELOLWLHV i %RUURZLQJV    ii 7UDGHSD\DEOHV $ 7RWDORXWVWDQGLQJGXHVRIPLFUR    HQWHUSULVHVDQGVPDOOHQWHUSULVHV % 7RWDORXWVWDQGLQJGXHVRIFUHGLWRUV    RWKHUWKDQPLFURHQWHUSULVHVDQGVPDOO HQWHUSULVHV iii 2WKHUͤQDQFLDOOLDELOLWLHV    E 2WKHUFXUUHQWOLDELOLWLHV    F 3URYLVLRQV    d &XUUHQWWD[OLDELOLWLHV QHW    1,400.88 1,314.39 Total Equity and liabilities 3,028.76 2,855.40 6HHDFFRPSDQ\LQJQRWHVWRWKHͤQDQFLDOVWDWHPHQWV $VSHURXUUHSRUWRIHYHQGDWH

For Ashok Kumar Goyal & Co. &KDUWHUHG$FFRXQWDQWV J P Agarwal Raju Bista T.S.Bhattacharya (Firm Registration No.ICAI: 02777N) &KDLUPDQ 0DQDJLQJ'LUHFWRU 'LUHFWRU ',1 ',1 ',1 K K Narula S S Khurana Vinay Surya 'LUHFWRU 'LUHFWRU 'LUHFWRU ',1 ',1 ',1 CA Ashok Kumar Ravinder K Narang Sunil Sikka S K Awasthi 3DUWQHU)&$ 'LUHFWRU 'LUHFWRU 'LUHFWRU 0HPEHUVKLS1R ',1 ',1 ',1 R N Maloo Ramanjit Singh Tarun Baldua Place: New Delhi ([HFXWLYH'LUHFWRU *URXS&KLHI &(2 /LJKWLQJ2SHUDWLRQV &(2 6WHHO2SHUDWLRQV Dated: 21st May, 2019 )LQDQFLDO2IͤFHU B B Singal 6U93 &RPSDQ\6HFUHWDU\ 114 ANNUAL REPORT 2018-19 67$7(0(172)352),7$1'/266 FOR THE YEAR ENDED 31st MARCH, 2019

(`LQFURUH Particulars Note Year Ended Year ended No. 31st March, 2019 31st March, 2018 I REVENUE FROM OPERATIONS   

II OTHER INCOME    REPORTS STATUTORY OVERVIEW CORPORATE III TOTAL INCOME (I+II) 5,981.15 5,014.42 IV EXPENSES &RVWRIPDWHULDOVFRQVXPHG    3XUFKDVHVRIVWRFNLQWUDGH    &KDQJHVLQLQYHQWRULHVRIͤQLVKHGJRRGVVWRFNLQWUDGH     DQGZRUNLQSURJUHVV ([FLVHGXW\   FINANCIAL SECTION (PSOR\HHEHQHͤWVH[SHQVH    )LQDQFHFRVWV    'HSUHFLDWLRQDQGDPRUWLVDWLRQH[SHQVH    2WKHUH[SHQVHV    Total Expenses 5,808.57 4,858.30 V PROFIT BEFORE TAX (III-IV) 172.58 156.12 VI TAX EXPENSE &XUUHQWWD[    'HIHUUHGWD[     VII PROFIT/(LOSS) FOR THE PERIOD 120.88 108.04 VIII OTHER COMPREHENSIVE INCOME  L ,WHPVWKDWZLOOQRWEHUHFODVVLͤHGWRSURͤWRUORVV     LL ,QFRPHWD[UHODWLQJWRLWHPVWKDWZLOOQRWEHUHFODVVLͤHG   WRSURͤWRUORVV Total other comprehensive income (3.15) (3.72) IX TOTAL COMPREHENSIVE INCOME(VII+VIII) 117.73 104.32 Earnings per equity shares (face value of ` 10/-each)   %DVLF LQ`    Diluted (in `   6HHDFFRPSDQ\LQJQRWHVWRWKHͤQDQFLDOVWDWHPHQWV

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%DODQFH6KHHW3URͤWDQG/RVV 115 &$6+)/2:67$7(0(17 FOR THE YEAR ENDED 31st MARCH, 2019

(`LQFURUH Particulars Year ended Year ended 31st March, 2019 31st March, 2018 A. CASH FLOW FROM OPERATING ACTIVITIES a. 1HWRSHUDWLQJSURͤWEHIRUHWD[Adjustment for :   Adjustment for : 5HPHDVXUHPHQWJDLQORVVRQGHͤQHGEHQHͤWSODQVURXWHGWKURXJK2&,     'HSUHFLDWLRQDQGDPRUWLVDWLRQRI3URSHUW\3ODQWDQG(TXLSPHQW   3URͤW /RVVRQ6DOH5HWLUHPHQWRI3URSHUW\3ODQWDQG(TXLSPHQW   1HW $OORZDQFHIRUGRXEWIXOGHEWVEDGGHEWV:RII   )LQDQFHFRVW   b. 2SHUDWLQJSURͤWEHIRUH:RUNLQJ&DSLWDOFKDQJHV$GMXVWPHQWIRU 376.47 350.14 ,QFUHDVH 'HFUHDVHLQ7UDGHUHFHLYDEOHV     ,QFUHDVH 'HFUHDVHLQ2WKHUͤQDQFLDODVVHWV    ,QFUHDVH 'HFUHDVHLQ2WKHUDVVHWV     ,QFUHDVH 'HFUHDVHLQ,QYHQWRULHV     ,QFUHDVH 'HFUHDVH LQ7UDGHSD\DEOHVSURYLVLRQV    ,QFUHDVH 'HFUHDVH LQ2WKHUͤQDQFLDOOLDELOLWLHV   ,QFUHDVH 'HFUHDVH LQ2WKHUOLDELOLWLHV    (221.34) (160.25) c. Cash generated from Operations before tax (a+b) 155.13 189.89 d. Net Direct Taxes paid (34.99) (34.97) Net cash flow from operating activities A = (c+d) 120.14 154.92 B. CASH FLOW FROM INVESTING ACTIVITIES 3XUFKDVHRI3URSHUW\3ODQWDQG(TXLSPHQW     6DOHRI3URSHUW\3ODQWDQG(TXLSPHQW   )L[HGGHSRVLWVGXHWRPDWXUHZLWKLQPRQWKVRIUHSRUWLQJGDWH   ,QYHVWPHQWLQVXEVLGLDU\&RPSDQ\    Net cash flow used in investing activities (105.33) (63.37) Net cash from operating and investing activities (A+B) 14.81 91.55 C. CASH FLOW FROM FINANCING ACTIVITIES 5HSD\PHQWRIQRQFXUUHQWERUURZLQJV LQFOXGLQJFXUUHQWPDWXULWLHV     3URFHHGVIURPQRQFXUUHQWERUURZLQJV   6KRUWWHUPERUURZLQJV,QFUHDVH 'HFUHDVH GXULQJWKH\HDU QHW   3D\PHQWRIGLYLGHQG     3D\PHQWRIGLYLGHQGGLVWULEXWLRQWD[     )LQDQFHFRVW     1HWFDVKXVHGLQͤQDQFLQJDFWLYLWLHV (37.30) (87.79) 1HWFDVK XVHG LQIURPRSHUDWLQJLQYHVWLQJDQGͤQDQFLQJ (22.49) 3.76 activities ((A+B)+C) 1HWLQFUHDVH GHFUHDVH LQ&DVK &DVKHTXLYDOHQW    2SHQLQJEDODQFH   Closing balance of Cash & Cash equivalent (refer note no.11 )  

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116 ANNUAL REPORT 2018-19 67$7(0(172)&+$1*(6,1(48,7< FOR THE YEAR ENDED 31st MARCH, 2019

EQUITY SHARE CAPITAL (`LQFURUH Particulars As at 31st March,2019 As at 31st March, 2018 No. of Shares Amount No. of Shares Amount %DODQFHDWWKHEHJLQQLQJRIWKHUHSRUWLQJSHULRG    

Balance at the end of the reporting period 5,44,08,974 54.41 5,44,08,974 54.41 REPORTS STATUTORY OVERVIEW CORPORATE

OTHER EQUITY (`LQFURUH Particulars Reserves and surplus Total Forfeiture Securities Capital Capital General Retained Other

reserve premium redemption reserve reserve earnings comprehensive FINANCIAL SECTION Account reserve income Balance as at 1st April, 2017 17.63 142.71 3.00 124.69 60.36 553.09 (4.97) 896.51 3URͤWIRUWKH\HDU    104.32 7RWDOFRPSUHKHQVLYHLQFRPHIRU WKH\HDU         104.32 3D\PHQWRIGLYLGHQG (6.57) (6.57) 3D\PHQWRIGLYLGHQGGLYLGHQG GLVWULEXWLRQWD[   (1.35) 7UDQVIHURISURILWIRUWKH\HDUWR *HQHUDOUHVHUYH     - Balance as at March 31,2018 17.63 142.71 3.00 124.69 71.36 642.21 (8.69) 992.91 3URͤWIRUWKH\HDU    117.73 7RWDOFRPSUHKHQVLYHLQFRPHIRU WKH\HDU         117.73 3D\PHQWRIGLYLGHQG   (10.88) 3D\PHQWRIGLYLGHQGGLVWULEXWLRQWD[   (2.24) 7UDQVIHURISURͤWIRUWKH\HDUWR General reserve 13.00 (13.00) - Balance as at 31st March, 2019 17.63 142.71 3.00 124.69 84.36 736.97 (11.84) 1,097.52

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124 ANNUAL REPORT 2018-19 5 PROPERTY, PLANT AND EQUIPMENT 2019(Contd.) FOR THEYEARENDED31stMARCH, 127(672),1$1&,$/67$7(0(176 (`LQFURUH Particulars Land- Land- Plant and Furniture and 2IͤFH Capital work Buildings Vehicles Computers Total Freehold Leasehold Equipment Fixtures Equipment's in progress GROSS CARRYING VALUE As at 1st April, 2017 19.41 10.97 193.10 1,031.45 5.26 4.73 2.41 5.81 1,273.14 15.55 Additions           'LVSRVDOV           As at 31st March, 2018 19.50 10.97 202.12 1,073.00 5.86 6.57 2.81 7.26 1,328.09 21.91 Additions           'HOHWLRQDGMXVWPHQWV           As at 31st March, 2019 21.03 10.97 212.21 1,162.26 6.36 8.97 3.00 6.88 1,431.68 24.57 DEPRECIATION As at 1st April, 2017 - 0.69 14.25 149.99 1.45 1.51 1.40 3.06 172.35 - 'HSUHFLDWLRQIRUWKH\HDU           'LVSRVDOV           As at 31st March, 2018 - 1.04 21.70 223.09 2.23 2.30 1.71 4.10 256.17 - 'HSUHFLDWLRQIRUWKH\HDU           'HOHWLRQDGMXVWPHQWV           As at 31st March, 2019 - 1.39 29.63 299.89 3.01 2.95 1.67 4.56 343.10 -

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FINANCIAL SECTION STATUTORY REPORTS CORPORATE OVERVIEW 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

6 INVESTMENT CARRIED AT COST (`LQFURUH As at As at 31st March, 2019 31st March, 2018 Investment in Subsidiary Unquoted (TXLW\VKDUHV SUHYLRXV\HDU1LO RI6XU\D5RVKQL/('/LJKWLQJ SURMHFWV/LPLWHGRI` HDFKIXOO\SDLGXS KROGLQJ HTXLW\VKDUHVKHOGLQWKHQDPHRIFRPSDQ\DQGEDODQFHHTXLW\ VKDUHVKHOGWKURXJKVL[QRPLQHHV   0.05 - $JJUHJDWH DPRXQW RI TXRWHG LQYHVWPHQWV 0DUNHW YDOXH RI ` Nil 3UHYLRXV\HDU`1LO $JJUHJDWHDPRXQWRIXQTXRWHGLQYHVWPHQWV 0.05 - 7 OTHER FINANCIAL ASSETS AT AMORTISED COST (NON CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 Unsecured, considered good 5HFHLYDEOHV   8QELOOHGUHYHQXH   6HFXULW\GHSRVLWV   46.06 9.39 8 OTHER NON CURRENT ASSETS (`LQFURUH As at As at 31st March, 2019 31st March, 2018 &DSLWDODGYDQFHV   7.25 6.67 9 INVENTORIES (CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 5DZPDWHULDOV   :RUNLQSURJUHVV   )LQLVKHGJRRGV   6WRUHVVSDUHVDQGFRQVXPDEOHV   843.53 828.57 7KHPRGHRIYDOXDWLRQKDVEHHQVWDWHGLQQRWHQR   ,QYHQWRULHVDUHK\SRWKHFDWHGDVVHFXULW\DJDLQVWERUURZLQJVVHHQRWHQR 

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126 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

11 CASH AND CASH EQUIVALENTS (`LQFURUH As at As at 31st March, 2019 31st March, 2018 D %DODQFHZLWKEDQNV

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13 OTHER FINANCIAL ASSETS (CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 8QELOOHGUHYHQXH   5HFRYHUDEOHIURPZKROO\RZQHGVXEVLGLDU\FRPSDQ\ UHIHUQRWH   2WKHU5HFRYHUDEOHV   38.45 46.20

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16 SHARE CAPITAL (`LQFURUH As at As at 31st March, 2019 31st March, 2018 I Equity Share Capital $XWKRULVHG  SUHYLRXV\HDU (TXLW\6KDUHVRI`HDFK   ZLWKYRWLQJULJKWV ,VVXHGVXEVFLUEHGDQGIXOO\SDLGXS(TXLW\VKDUHFDSLWDO  SUHYLRXV\HDU (TXLW\6KDUHVRI`HDFK   ZLWKYRWLQJULJKWV

1RWHV7R)LQDQFLDO6WDWHPHQWV 127 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

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20 PROVISION (NON CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 3URYLVLRQIRUHPSOR\HHEHQHͤWV *UDWXLW\ UHIHUQRWH   &RPSHQVDWHGDEVHQFHV UHIHUQRWH   50.68 45.53

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(`LQFURUH As at 1st April, Recognised Recognised As at 31st Deferred tax liabilities 2017 in P & L in OCI March, 2018 'HIHUUHGWD[OLDELOLWLHVDVVHWVDUHDWWULEXWDEOHWRWKHIROORZLQJ LWHPV Deferred tax liabilities 'LIIHUHQFHEHWZHHQERRNVGHSUHFLDWLRQDQGWD[GHSUHFLDWLRQ    Sub- (a) 89.55 13.74 - 103.29 Deferred tax assets 'LVDOORZHGXQGHUVHFWLRQ%RIWKH,QFRPHWD[$FWRQSD\PHQW     EDVLV $OORZDQFHIRUGRXEWIXOGHEWV   Sub- (b) 13.30 4.51 1.97 19.78 Net deferred tax liability (a-b) 76.25 9.23 (1.97) 83.51

130 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

22 BORROWINGS (CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 Secured /RDQVUHSD\DEOHRQGHPDQG )URPEDQNV REPORTS STATUTORY OVERVIEW CORPORATE 5XSHHORDQV   )RUHLJQFXUUHQF\ORDQV   &RPPHUFLDOSDSHU   796.67 717.05  :RUNLQJ&DSLWDO/RDQVRI`FURUHDUHVHFXUHGDJDLQVWFXUUHQWDVVHWVERWKSUHVHQWDQGIXWXUHDQGIXUWKHUVHFXUHG

E\ZD\RIVHFRQGFKDUJHRQDOO)L[HG$VVHWVLQFOXGLQJHTXLWDEOHPRUWJDJHRI/DQGDQG%XLOGLQJDQGSHUVRQDOJXDUDQWHH FINANCIAL SECTION RIWKH&KDLUPDQRIWKH&RPSDQ\7KHUXSHHORDQVOLQNHGZLWK0&/5RIUHVSHFWLYHEDQNVUDQJLQJIURP0&/5WRESV VSUHDGRYHU0&/5

23 TRADE PAYABLES (`LQFURUH As at As at 31st March, 2019 31st March, 2018 RXWVWDQGLQJGXHVRIPLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHV   RXWVWDQGLQJGXHVRWKHUWKDQPLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHV   350.01 408.35 I 7KH GHWDLOV RI DPRXQWV RXWVWDQGLQJ WR 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVHV EDVHG RQ DYDLODEOH LQIRUPDWLRQ ZLWK WKH &RPSDQ\DVXQGHU I 7KH3ULQFLSDODPRXQWDQGWKHLQWHUHVWGXHWKHUHRQUHPDLQLQJ XQSDLGWRDQ\VXSSOLHU 3ULQFLSDO$PRXQW   ,QWHUHVW Nil Nil ii 7KHDPRXQWRILQWHUHVWSDLGE\WKH&RPSDQ\DORQJZLWK WKHDPRXQWVRIWKHSD\PHQWPDGHWRWKHVXSSOLHUEH\RQG WKHDSSRLQWHGGD\IRUWKH\HDUHQGLQJ Nil Nil iii 7KH DPRXQW RI LQWHUHVW GXH DQG SD\DEOH IRU WKH SHULRG RI GHOD\LQPDNLQJSD\PHQW EH\RQGWKHDSSRLQWHGGD\GXULQJ WKH\HDU Nil Nil iv 7KHDPRXQWRILQWHUHVWDFFUXHGDQGUHPDLQLQJXQSDLGIRU WKH\HDUHQGLQJ Nil Nil v 7KHDPRXQWRIIXUWKHULQWHUHVWUHPDLQLQJGXHDQGSD\DEOH IRUWKHHDUOLHU\HDUV Nil Nil  7KH,QIRUPDWLRQKDVEHHQJLYHQLQUHVSHFWRIVXFKVXSSOLHUVWRWKHH[WDQWWKH\FRXOGEHLGHQWLͤHGDV̸0LFURDQG6PDOO̹ HQWHUSULVHVRQWKHEDVLVRILQIRUPDWLRQVXEPLWWHGWRWKH&RPSDQ\

1RWHV7R)LQDQFLDO6WDWHPHQWV 131 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

24 OTHER FINANCIAL LIABILITIES (CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 &XUUHQWPDWXULWLHVRIORQJWHUPERUURZLQJV UHIHUQRWH   ,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV   8QSDLGGLYLGHQGV  UHIHUQRWH   )RUZDUG&RQWUDFWSD\DEOH   3D\DEOHWRHPSOR\HHV   ([SHQVHV3D\DEOH   159.08 120.41 7KHUHDUHQRDPRXQWVGXHDQGRXWVWDQGLQJWREHFUHGLWHGWRWK H,QYHVWRU(GXFDWLRQ 3URWHFWLRQ)XQGDVDWVW0DUFK   

25 OTHER LIABILITIES (CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 $GYDQFHVIURPFXVWRPHUV   6WDWXWRU\GXHVSD\DEOHV   41.19 31.92

26 PROVISIONS (CURRENT) (`LQFURUH As at As at 31st March, 2019 31st March, 2018 3URYLVLRQIRUHPSOR\HHEHQHͤWV *UDWXLW\ UHIHUQRWH   &RPSHQVDWHGDEVHQFHV UHIHUQRWH   7.96 4.54 2WKHUSD\DEOHV :DUUDQW\SD\DEOH UHIHUQRWH   44.41 26.44 52.37 30.98

27 CURRENT TAX LIABILITIES (`LQFURUH As at As at 31st March, 2019 31st March, 2018 &XUUHQWWD[OLDELOLW\ QHW   1.56 5.68

28 INCOME TAX (`LQFURUH As at As at 31st March, 2019 31st March, 2018 a ,QFRPHWD[UHFRJQL]HGLQSURͤWRUORVV &XUUHQWWD[H[SHQVH   'HIHUUHGWD[H[SHQVH 2ULJLQDWLRQDQGUHYHUVDORIWHPSRUDU\GLIIHUHQFHV    Total tax expenses 51.70 48.08

132 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

(`LQFURUH As at As at 31st March, 2019 31st March, 2018 b Reconciliation of effective tax rate 3URͤWEHIRUHWD[   STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE 'RPHVWLFWD[UDWH   7D[XVLQJWKH&RPSDQ\̵VGRPHVWLFWD[UDWH   ,QFUHDVHUHGXFWLRQLQ7D[HVRQDFFRXQWRI ,QFRPHQRWWD[DEOHH[HPSWIURPWD[     2WKHUQRQGHGXFWLEOHH[SHQVHV   ,QFRPHWD[H[SHQVHVFKDUJHGWRVWDWHPHQWRISURͤWDQGORVV  

Effective tax rate 29.955% 30.797% FINANCIAL SECTION 'XULQJWKH\HDUHQGHGVW0DUFKDQGVW0DUFKFRPSDQ\KDVWDNHQGHGXFWLRQDYDLOHGH[HPSWLRQIRU IROORZLQJV  D  8QGHUVHFWLRQ ,& RI WKH ,QFRPH7D[ $FW RQ  3URͤWV RI HOLJLEOH LQGXVWULDO XQGHUWDNLQJV DW .DVKLSXU 8WDUDNKDQG   E  8QGHUVHFWLRQ$'RIWKH,QFRPH7D[$FW#RQWKH3ODQW 0DFKLQHU\LQVWDOOHGDWQHZO\VHWXSXQLWDW +LQGXSXULQWKHQRWLͤHGEDFNZDUGDUHDRIWKHVWDWHRI$QGKUD3UDGHVK   F  5HVHDUFK DQG GHYHORSPHQW H[SHQGLWXUH #  SUHYLRXV \HDU #  LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI 6HFWLRQ $% RIWKH,QFRPH7D[$FW 29 REVENUE FROM OPERATIONS (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 a. Sale of goods (including excise duty but net of GST); L 6WHHOSLSHDQGVWULSV   LL /LJKWLQJDQGFRQVXPHUGXUDEOHV   5,909.05 4,957.15 /HVV,QWHU6HJPHQW6DOHV   5,905.70 4,950.50 b. Other operating revenue; L ,QYHVWPHQWSURPRWLRQDVVLVWDQFH UHIHUQRWHQR   LL ([SRUWLQFHQWLYHVDQGFODLPV   68.96 52.50 c. Sale of services   2.38 8.76 5,977.04 5,011.76 Note: $VSHUWKHUHTXLUHPHQWRI,QG$65HYHQXHIRUWKHSHULRGXSWRWK-XQHZHUHUHSRUWHGLQFOXVLYHRI([FLVH 'XW\RI`FURUHV7KH*RYHUQPHQWRI,QGLDKDVLPSOHPHQWHG*RRGVDQG6HUYLFH7D[ ̸*67̹ IURPVW-XO\ UHSODFLQJ([FLVH'XW\6HUYLFH7D[DQGYDULRXVRWKHULQGLUHFWWD[HV$VSHU,QG$6WKHUHYHQXHIRUFXUUHQW \HDUDQGSUHYLRXV\HDUIURPVW-XO\ZHUHUHSRUWHGQHWRI*67

30 OTHER INCOME (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 D ,QWHUHVW,QFRPHIURPͤQDQFLDODVVHWV   E 3URͤWRQVDOHRISURSHUW\SODQWDQGHTXLSPHQW   F 0LVFHOODQHRXVLQFRPH   4.11 2.66

1RWHV7R)LQDQFLDO6WDWHPHQWV 133 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

31 COST OF MATERIALS CONSUMED (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 L 6WHHOSLSHDQGVWULSV D 5DZPDWHULDOV ,PSRUWHG   E 5DZPDWHULDOV ,QGLJHQRXV   LL /LJKWLQJDQGFRQVXPHUGXUDEOHV D 5DZPDWHULDOV ,PSRUWHG    E 5DZPDWHULDOV ,QGLJHQRXV   F 3DFNLQJPDWHULDOVFRQVXPHG   4,406.24 3,613.68 /HVV,QWHU6HJPHQW&RQVXPSWLRQ    4,402.89 3,607.03 32 PURCHASE OF STOCK-IN-TRADE (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 /LJKWLQJDQGFRQVXPHUGXUDEOHV RXWVRXUFHG   288.60 291.21 33 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 Inventories at the end of the year )LQLVKHGJRRGV   :RUNLQ3URJUHVV   465.85 504.73 Inventories at the beginning of the year )LQLVKHGJRRGV   /HVV([FLVH'XW\RQRSHQLQJVWRFN   )LQLVKHGJRRGV 1HW   :RUNLQ3URJUHVV   504.73 420.66 38.88 (84.07) 34 EMPLOYEE BENEFIT EXPENSES (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 D 6DODULHVZDJHVDQGERQXV   E &RQWULEXWLRQWRSURYLGHQWDQGRWKHUIXQGV   F 6WDIIZHOIDUHH[SHQVHV   293.73 268.86

35 FINANCE COST (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 D ,QWHUHVWH[SHQVHV   E 2WKHUERUURZLQJFRVW   115.07 105.16

134 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

36 DEPRECIATION AND AMORTISATION EXPENSES (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 D 'HSUHFLDWLRQ UHIHUQRWH   88.51 87.31 STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE 37 OTHER EXPENSES (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 D &RQVXPSWLRQRIVWRUHVDQGVSDUHV  

E 3RZHUIXHODQGZDWHUFKDUJHV   FINANCIAL SECTION F 5HSDLUVDQGPDLQWHQDQFH SODQWDQGPDFKLQHU\   EXLOGLQJV   RWKHUV   G 3URGXFWZDUUDQWLHV   H 6DOHVSURPRWLRQH[SHQVHV   I &RPPLVVLRQRQVDOHV   J $GYHUWLVHPHQWDQGSXEOLFLW\   K )UHLJKWDQGIRUZDUGLQJH[SHQVHV   i $OORZDQFHIRUGRXEWIXOGHEWVEDGGHEWV:RII   M Rent   N 5DWHVDQGWD[HV   O ,QVXUDQFH   P 3RVWDJHDQGWHOHSKRQH   Q 7UDYHOOLQJDQGFRQYH\DQFH   R /RVVRQGLVFDUGGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW   S &RUSRUDWHVRFLDOUHVSRQVLELOLW\H[SHQVHV   T /HJDODQGSURIHVVLRQDOH[SHQVHV   U $XGLWRU VUHPXQHUDWLRQ H[FOXGLQJ*67VHUYLFHWD[LQSXW FUHGLW IRUDXGLW   IRUWD[DXGLW   IRUFHUWLͤFDWLRQZRUN   IRUUHLPEXUVHPHQWRIRXWRISRFNHWH[SHQVHV   V 0LVFHOODQHRXVH[SHQVHV   580.89 502.20

38 OTHER COMPREHENSIVE INCOME (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 ,WHPVWKDWZLOOQRWEHUHFODVVLͤHGWRSURͤWRUORVV i ,WHPVWKDWZLOOQRWEHUHFODVVLͤHGWRSURͤWRUORVV  5HPHDVXUHPHQWVRIWKHGHͤQHGEHQHͤWSODQV     ii ,QFRPHWD[UHODWLQJWRLWHPVWKDWZLOOQRWEHUHFODVVLILHGWRSURILWRUORVV  5HODWHGWRUHPHDVXUHPHQWVRIWKHGHͤQHGEHQHͤWSODQV   (3.15) (3.72)

1RWHV7R)LQDQFLDO6WDWHPHQWV 135 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

39 EARNING PER SHARE (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 7KHIROORZLQJLVDUHFRQFLOLDWLRQRIWKHHTXLW\VKDUHVXVHGLQWKH FRPSXWDWLRQRIEDVLFDQGGLOXWHGHDUQLQJVSHUHTXLW\VKDUH A ,VVXHGHTXLW\VKDUHV 1R V   :HLJKWHGDYHUDJHHTXLW\VKDUHVRXWVWDQGLQJ%DVLFDQG B Diluted 1R V   C 1HWSURͤWDIWHUWD[   %DVLF(DUQLQJSHUHTXLW\VKDUH &% 3HU`   'LOXWHG(DUQLQJSHUHTXLW\VKDUH &% 3HU`   )DFH9DOXHSHU(TXLW\6KDUH `  

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41 EXPENDITURE INCURRED ON CORPORATE SOCIAL RESPONSIBILITY  'HWDLOVRIH[SHQGLWXUHRQ&RUSRUDWH6RFLDO5HVSRQVLELOLW\$FWLYLWLHVDVSHU6HFWLRQRIWKH&RPSDQLHV$FWUHDG ZLWKVFKHGXOH,,,DUHDVEHORZ (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 A *URVVDPRXQWUHTXLUHGWREHVSHQWE\WKH&RPSDQ\GXULQJWKH \HDU   B $PRXQWVSHQWGXULQJWKH\HDU i &RQVWUXFWLRQDFTXLVLWLRQRIDVVHW 1,/ 1,/ ii 2QSXUSRVHRWKHUWKDQ L DERYH̰ D 5XUDO'HYHORSPHQW   E 1DWXURSDWK\   F 2WKHUDGPLQLVWUDWLYHH[SHQVHV   2.57 2.04 2XWRIWKHDERYHDPRXQWVSHQWWKURXJK6XU\D)RXQGDWLRQ` FURUHV SUHYLRXV\HDURI` FURUH

42 CONTINGENT LIABILITIES (`LQFURUH As at As at 31st March, 2019 31st March, 2018 I Guarantees %DQN*XDUDQWHHVLVVXHGE\EDQNVIRUZKLFKFRXQWHUJXDUDQWHH JLYHQE\WKH&RPSDQ\   II Other contingent liabilities D ([SRUWREOLJDWLRQXQGHU(3&*6FKHPH 'XW\LQYROYHGRQ(3&*/LFHQVH   %RQGV([HFXWHGE\WKH&RPSDQ\WR&XVWRP'HSDUWPHQW RI`&URUHSUHYLRXV\HDU5V&URUH E (VWLPDWHGDPRXQWRIFRQWUDFWUHPDLQLQJWREHH[HFXWHG RQFDSLWDODFFRXQW 3URSHUW\3ODQWDQG(TXLSPHQW DQG QRWSURYLGHGIRU   F &ODLPVDJDLQVWWKH&RPSDQ\QRWDFNQRZOHGJHGDVGHEW  

136 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

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47 PRE-OPERATIVE EXPENSES CAPITALISED DURING THE YEAR:  7KH&RPSDQ\KDVLQFXUUHGFDSLWDOH[SHQGLWXUHDW+LQGXSXUIRU(5:VWHHOSLSHVPDQXIDFWXULQJXQLWDQGDW$QMDUXQLWIRU /3(FRDWLQJSODQWIDFLOLWLHVZKHUHLQIROORZLQJSUHRSHUDWLYHH[SHQVHVDUHFDSLWDOLVHG (`LQFURUH For the year ended For the year ended 31st March, 2019 31st March, 2018 5DZPDWHULDOVFRQVXPHG   (PSOR\HHEHQHͤWV   %RUURZLQJFRVW   2WKHUH[SHQVHV 3RZHUFKDUJHV   2XWZDUGIUHLJKW   2WKHUV   Total 14.04 0.39 /HVV5HDOLVDWLRQ   Total 3.50 0.39

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48 EMPLOYEE BENEFITS 'LVFORVXUHVSXUVXDQWWR,QG$6̸(PSOR\HH%HQHͤWV̹ 6SHFLͤHGXQGHUWKHVHFWLRQRIWKH&RPSDQLHV$FW WKH$FW UHDGZLWK&RPSDQLHV ,QGLDQ$FFRXQWLQJ6WDQGDUGV 5XOH DVDPHQGHGIURPWLPHWRWLPH DQGRWKHU UHOHYDQWSURYLVLRQRIWKH$FW DUHJLYHQEHORZ  &RQWULEXWLRQWR'HͤQHG&RQWULEXWLRQ3ODQUHFRJQLVHGDVH[SHQVHVDUHDVXQGHU (`LQFURUH REPORTS STATUTORY OVERVIEW CORPORATE Year Ended 31st March, 2019 31st March, 2018 (PSOR\HU̵V&RQWULEXWLRQWRGHͤQHGFRQWULEXWLRQSODQV    , 7KHSULQFLSDODFWXDULDODVVXPSWLRQVXVHGIRUHVWLPDWLQJWKH&RPSDQ\̵VGHͤQHGEHQHͤWREOLJDWLRQVDUHVHWRXWEHORZ Valuation as at 31st March, 2019 31st March, 2018 FINANCIAL SECTION $WWULWLRQUDWHIRUYDULRXVDJHVLQ WR WR 'LVFRXQW5DWHLQ   ([SHFWHG5DWHRILQFUHDVHLQVDODU\LQ   0RUWDOLW\UDWH,QGLDQ$VVXUHG/LYHV0RUWDOLW\    ([SHFWHG$YHUDJHUHPDLQLQJZRUNLQJOLYHVRIHPSOR\HHV \HDUV    D  'LVFRXQWUDWHLVEDVHGRQWKHSUHYDLOLQJPDUNHW\LHOGVRI,QGLDQ*RYHUQPHQWVHFXULWLHVDVDWWKHEDODQFHVVKHHW GDWHIRUWKHHVWLPDWHGWHUPRIREOLJDWLRQV   E  7KHDVVXPSWLRQRIIXWXUHVDODU\LQFUHDVHWDNHVLQWRDFFRXQWWKHLQIODWLRQVHQLRULW\SURPRWLRQDQGRWKHUUHOHYDQW IDFWRUVVXFKDVVXSSO\DQGGHPDQGLQHPSOR\PHQWPDUNHW 

II Movement in Obligation

(`LQFURUH Particulars For the year ended For the year ended 31st March, 2019 31st March, 2018 Gratuity Compensated Gratuity Compensated (partly absences (partly absences funded) (Unfunded) funded) (Unfunded) 3UHVHQWYDOXHRIREOLJDWLRQDVDWWKHEHJLQQLQJRIWKH     SHULRG &XUUHQW6HUYLFHFRVW     3DVW6HUYLFH&RVWLQFOXGLQJFXUWDLOPHQW*DLQ/RVVHV     ,QWHUHVWFRVW     %HQHͤWVSDLG         $FWXDULDOORVV JDLQ DULVLQJIURPFKDQJHVLQ     'HPRJUDSKLFDVVXPSWLRQV $FWXDULDOORVV JDLQ DULVLQJIURPFKDQJHVLQ)LQDQFLDO     DVVXPSWLRQV $FWXDULDOORVV JDLQ DULVLQJIURPH[SHULHQFH     DGMXVWPHQW Present value of obligation as at the end of the period 45.56 13.08 38.60 11.47 ,,, $PRXQWUHFRJQLVHGLQWKHVWDWHPHQWRI3URͤWDQG/RVV (`LQFURUH As at As at 31st March, 2019 31st March, 2018 Gratuity Compensated Gratuity Compensated Particulars absences absences &XUUHQW6HUYLFHFRVW     ,QWHUHVWFRVW     5HPHDVXUHPHQW$FWXDULDOORVV JDLQ     ([SHQVHVUHFRJQLVHGLQWKHVWDWHPHQWRI3URͤWDQG/RVV 6.35 4.62 5.54 4.62

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,9 &RPSRQHQWRIGHͤQHGEHQHͤWFRVWVUHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPH  (`LQFURUH Gratuity For the year ended For the year ended 31st March, 2019 31st March, 2018 $FWXDULDOORVV JDLQ DULVLQJIURPFKDQJHVLQGHPRJUDSKLF   DVVXPSWLRQV $FWXDULDOORVV JDLQ DULVLQJIURPFKDQJHVLQ)LQDQFLDO   DVVXPSWLRQV $FWXDULDOORVV JDLQ DULVLQJIURPH[SHULHQFHDGMXVWPHQW   $FWXDULDOORVV JDLQ DULVLQJRQSODQDVVHW   &RPSRQHQWRIGHͤQHGEHQHͤWFRVWVUHFRJQLVHGLQRWKHU FRPSUHKHQVLYHLQFRPH 4.84 5.69 V Current and non-current provision for Gratuity and Compensated absences

(`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 Gratuity Compensated Gratuity Compensated absences absences &XUUHQWSURYLVLRQ     1RQFXUUHQWSURYLVLRQ     Total provision 45.56 13.08 38.60 11.47 9, 0DWXULW\SURͤOHRI'HͤQHG%HQHͤW2EOLJDWLRQDUHDVXQGHU

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(`LQFURUH Particulars For the year ended For the year ended 31st March, 2019 31st March, 2018 Effect on Effect on Effect on Effect on Gratuity Compensated Gratuity Compensated Obligation absences Obligation absences Obligation Obligation REPORTS STATUTORY OVERVIEW CORPORATE 2QHSHUFHQWDJHSRLQWLQFUHDVHLQGLVFRXQWUDWH         2QHSHUFHQWDJHSRLQWGHFUHDVHLQGLVFRXQWUDWH     2QHSHUFHQWDJHSRLQWLQFUHDVHLQVDODU\JURZWKUDWH     2QHSHUFHQWDJHSRLQWGHFUHDVHLQVDODU\JURZWKUDWH         2QHSHUFHQWDJHSRLQWLQFUHDVHLQDWWULWLRQUDWH     2QHSHUFHQWDJHSRLQWGHFUHDVHLQDWWULWLRQUDWH        

Note : FINANCIAL SECTION D  7KHVHQVLWLYLW\DQDO\VLVSUHVHQWHGDERYHPD\QRWEHUHSUHVHQWDWLYHRIWKHDFWXDOFKDQJHLQWKHGHͤQHGEHQHͤW REOLJDWLRQDVLWLVXQOLNHO\WKDWWKHFKDQJHLQDVVXPSWLRQVZRXOGRFFXULQLVRODWLRQRIRQHDQRWKHUDVVRPHRIWKH DVVXPSWLRQVPD\EHFRUUHODWHG  E  )XUWKHUPRUHLQSUHVHQWLQJWKHDERYHVHQVLWLYLW\DQDO\VLVWKHSUHVHQWYDOXHRIWKHGHͤQHGEHQHͤWREOLJDWLRQKDV EHHQFDOFXODWHGXVLQJWKHSURMHFWHGXQLWFUHGLWPHWKRGDWWKHHQGRIWKHUHSRUWLQJSHULRGZKLFKLVWKHVDPHDVWKDW DSSOLHGLQFDOFXODWLQJWKHGHͤQHGEHQHͤWREOLJDWLRQOLDELOLW\UHFRJQLVHGLQWKHEDODQFHVKHHW F  7KHLUZDVQRFKDQJHLQWKHPHWKRGDQGDVVXPSWLRQVXVHGLQSUHSDULQJWKHVHQVLWLYLW\DQDO\VLVIURPSULRU\HDUV

49 RELATED PARTY TRANSACTIONS  ,QDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI,1'$6RQUHODWHGSDUW\GLVFORVXUHVQDPHRIWKHUHODWHGSDUW\UHODWLRQVKLS WUDQVDFWLRQVDQGRXWVWDQGLQJEDODQFHVLQFOXGLQJFRPPLWPHQWVZKHUHFRQWUROH[LWVDQGZLWKZKRPWUDQVDFWLRQVKDYH WDNHQSODFHGXULQJUHSRUWHGSHULRGVDUHUHSRUWHGKHUH List of related parties 1 Related parties where control exists.   6XEVLGLDU\&RPSDQ\   6XU\D5RVKQL/('/LJKWLQJSURMHFWV/LPLWHG :KROO\RZQHGVXEVLGLDU\ FRPSDQ\LQFRUSRUDWHGRQVW-DQXDU\ 2 Key Management Personnel S.No. Name Designation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

` 5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQWK0D\   C 5HVLJQHGIURPWKH%RDUGRIWKH&RPSDQ\RQQG-XQHDQGODWHUGHFHDVHGRQWK-XQH   1RPLQDWLRQZLWKGUDZQZHIWK0DUFK

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3 Relatives of key management personnel where transactions have taken place

S.No. Name of Relatives Relationship  0U5DMHVK%LVWD %URWKHURI0U5DMX%LVWD  0UV3XMD6XU\D 6SRXVHRI0U9LQD\6XU\D  0DVWHU-DLYDUGKDQ6XU\D 6RQRI0U9LQD\6XU\D  0V3DULQLVWKD6XU\D 'DXJKWHURI0U9LQD\6XU\D  0V9DVXGKD6XU\D 'DXJKWHURI0U9LQD\6XU\D The following transactions were carried out with the related parties in the ordinary course of business i With the Subsidiary Company - Surya Roshni LED Lighting projects Limited (Incorporated on 21st January, 2019) (`LQFURUH S.No. Nature of transaction/ relationship Year ended 31st March, 2019 i Sales of Goods and others 2.36 ii Investment made in Equity Shares 0.05 iii 3D\DPHQWPDGHRQWKHLUEHKDOI 0.22 iv Balances at year end 5HFHLYDEOHV  2WKHUUHFRYHUDEOH  ii Compensation of Key Management Personnel of the Company (`LQFURUH S.No. Nature of transaction/ relationship Year ended Year ended March 31, 2019 March 31, 2018 D 6KRUW7HUP%HQHͤW 6HHQRWHVEHORZ   E 'LUHFWRUVFRPPLVVLRQ   7RWDO6KRUW7HUPEHQHͤWV 17.41 13.88 F 'LUHFWRUVLWWLQJ)HH V 0.21 0.19

Notes: $ 6KRUWWHUPEHQHͤWVFRPSULVHVWKHH[SHQVHVUHFRUGHGXQGHUWKHKHDGHPSOR\HHEHQHͤWH[SHQVHV HJ6DODU\DQGZDJHV FRQWULEXWLRQWRSURYLGHQWIXQG136/HDYHHQFDVKPHQWSD\PHQWVDQGWD[DEOHYDOXHRISHUTXLVLWLHVHWF % 7KHOLDELOLW\IRUJUDWXLW\DQGFRPSHQVDWHGDEVHQFHVDUHSURYLGHGRQDFWXDULDOEDVLVIRUWKH&RPSDQ\DVD ZKROHDPRXQWVDFFUXHGSHUWDLQLQJWRNH\PDQDJHULDOSHUVRQQHODUHQRWLQFOXGHGDERYH  & 7KHUHPXQHUDWLRQRIGLUHFWRUVDQGNH\H[HFXWLYHVLVGHWHUPLQHGE\WKHUHPXQHUDWLRQFRPPLWWHHKDYLQJUHJDUG WRWKHSHUIRUPDQFHRILQGLYLGXDOVDQGPDUNHWWUHQGV iii Loan given to Key Management Personnel

7UDQVDFWLRQGXULQJWKH\HDU   %DODQFHDW\HDUHQG   iv Dividend paid to Key Management Personnel   v Payment of Salaries and perquisites to relatives of KMP 0.34 0.26 vi Dividend paid to relatives of Key Management Personnel 0.11 -

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(`LQFURUH REPORTS STATUTORY OVERVIEW CORPORATE Particulars Maximum Principal Amount Amount Outstanding as at Outstanding during the year the year end (excluding interest accrued) As on 31st March, 2019 As on 31st March, 2019 ,QYHVWPHQW  

$GYDQFH5HFRYHUDEOH   FINANCIAL SECTION Note: 3UHYLRXV\HDUͤJXUHVDUHQRWDSSOLFDEOHVLQFHWKHVROHZKROO\RZQHGVXEVLGLDU\FRPSDQ\DVDERYHKDVEHHQ LQFRUSRUDWHGRQVW-DQXDU\ZLWKDQLQLWLDOSDLGXSFDSLWDORI5XSHHV)LYHODNKDV6SHFLDO3XUSRVH9HKLFOH 639  50 SEGMENT INFORMATION Description of segments and principal activities  7KH&KLHIRSHUDWLRQDOGHFLVLRQPDNHUV &2'0 PRQLWRUWKHRSHUDWLQJUHVXOWVRILWV%XVLQHVV6HJPHQWVVHSDUDWHO\IRU WKHSXUSRVHRIPDNLQJGHFLVLRQVDERXWUHVRXUFHDOORFDWLRQDQGSHUIRUPDQFHDVVHVVPHQW6HJPHQWSHUIRUPDQFHLV HYDOXDWHGEDVHGRQSURͤWRUORVVDQGLVPHDVXUHGFRQVLVWHQWO\ZLWKSURͤWRUORVVLQWKHͤQDQFLDOVWDWHPHQWV2SHUDWLQJ VHJPHQWVKDYHEHHQLGHQWLͤHGRQWKHEDVLVRIWKHQDWXUHRISURGXFWVVHUYLFHVDQGKDYHEHHQLGHQWLͤHGDVSHUWKH TXDQWLWDWLYHFULWHULDVSHFLͤHGLQWKH,QG$6   6SHFLͤFDOO\WKH&RPSDQ\̵VUHSRUWDEOHVHJPHQWVXQGHU,QG$6DUHDVIROORZV   6WHHO3LSHDQG6WULSV FRPSULVHV6WHHOSLSHVDQGFROGUROOHGVWULSV       /LJKWLQJDQGFRQVXPHUGXUDEOHV FRPSULVHV/DPSVͤWWLQJVVWUHHWOLJKWIDQVHOHFWULFDSSOLDQFHVDQGDOOLHGLWHPV ,GHQWLͤFDWLRQRI6HJPHQWV )RUͤQDQFLDOVWDWHPHQWVSUHVHQWDWLRQSXUSRVHVWKHVHLQGLYLGXDORSHUDWLQJVHJPHQWVKDYHEHHQDJJUHJDWHGLQWRDVLQJDO RSHUDWLQJVHJPHQWDIWHUWDNLQJLQWRFRQVLGHUDWLRQWKHVLPLODUQDWXUHRIWKHSURGXFWVSURGXFWLRQSURFHVVHVDQGRWKHUULVN IDFWRUV)RUͤQDQFLDOVWDWHPHQWVSUHVHQWDWLRQSXUSRVHVWKHVHLQGLYLGXDORSHUDWLQJVHJPHQW̵VKDYHEHHQDJJUHJDWHGLQWRD VLQJOHRSHUDWLQJVHJPHQWWDNLQJLQWRDFFRXQWWKHIROORZLQJIDFWRUV  L 7KHVHRSHUDWLQJVHJPHQWVKDYHVLPLODUORQJWHUPJURVVSURͤ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ͤQDQFLDODVVHWVGHIHUUHGWD[DVVHWVDQGLQFRPHWD[UHFRYHUDEOH LY 6HJPHQW OLDELOLWLHV FRPSULVH RSHUDWLQJ OLDELOLWLHV DQG H[FOXGH H[WHUQDO ERUURZLQJV SURYLVLRQ IRU WD[HV GHIHUUHG WD[ OLDELOLWLHVDQGGHULYDWLYHͤQDQFLDOOLDELOLWLHV    Y 6HJPHQWFDSLWDOH[SHQGLWXUHFRPSULVHVDGGLWLRQVWRSURSHUW\SODQWDQGHTXLSPHQWDQGLQWDQJLEOHDVVHWV QHWRIUHEDWHV ZKHUHDSSOLFDEOH     YL 8QDOORFDWHGH[SHQVHVUHVXOWVDVVHWVDQGOLDELOLWLHVLQFOXGHH[SHQVHVUHVXOWVDVVHWVDQGOLDELOLWLHV LQFOXGLQJLQWHU

1RWHV7R)LQDQFLDO6WDWHPHQWV 143 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

VHJPHQWDVVHWVDQGOLDELOLWLHV DQGRWKHUDFWLYLWLHVQRWDOORFDWHGWRWKHRSHUDWLQJVHJPHQWV7KHVHDOVRLQFOXGHFXUUHQW WD[HVGHIHUUHGWD[HVDQGFHUWDLQͤQDQFLDODVVHWVDQGOLDELOLWLHVQRWDOORFDWHGWRWKHRSHUDWLQJVHJPHQWV I. Segment revenues and results (`LQFURUH Particulars For the year ended For the year ended 31st March, 2019 31st March, 2018 6HJPHQWUHYHQXH 6WHHO3LSHDQG6WULSV   /LJKWLQJDQGFRQVXPHUGXUDEOHV   5,980.39 5,018.41 /HVV,QWHU6HJPHQWUHYHQXH   5,977.04 5,011.76 6HJPHQWSURͤW HDUQLQJEHIRUH 6WHHO3LSHDQG6WULSV   LQWHUHVWDQGWD[HV /LJKWLQJDQGFRQVXPHU   GXUDEOHV 287.65 261.28 )LQDQFHFRVWV   3URͤWEHIRUHWD[ 172.58 156.12 7D[H[SHQVH   3URͤWDIWHUWD[ 120.88 108.04

II. Segment Assets and Liabilities (`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 6HJPHQWDVVHWV 6WHHO3LSHDQG6WULSV   /LJKWLQJDQGFRQVXPHUGXUDEOHV   Total Segment assets 3,001.66 2,807.57 8QDOORFDWHGDVVHWV   3,028.76 2,855.40 6HJPHQWOLDELOLWLHV 6WHHO3LSHDQG6WULSV   /LJKWLQJDQGFRQVXPHU   GXUDEOHV Total Segment Liabilities 603.80 621.50 8QDOORFDWHG/LDELOLWLHV   1,876.83 1,808.08 Notes :  ,8QDOORFDWHGDVVHWVDUHFRPSULVHVRI0$7DQGLQFRPHWD[UHIXQGDEOH     ,,8QDOORFDWHGOLDELOLWLHVDUHFRPSULVHVERUURZLQJVSURYLVLRQIRULQFRPHWD[GHIHUUHGWD[HWF III. Other segment information (`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 &RVWLQFXUUHGRQDFTXLVLWLRQRI 6WHHO3LSHDQG6WULSV   WDQJLEOHDVVHWV /LJKWLQJDQGFRQVXPHUGXUDEOHV   108.40 66.62 'HSUHFLDWLRQDQGDPRUWLVDWLRQ 6WHHO3LSHDQG6WULSV   H[SHQVH /LJKWLQJDQGFRQVXPHUGXUDEOHV   88.51 87.31 IV. Geographical information  7KH&RPSDQ\RSHUDWHVLQVHYHQJHRJUDSKLFDODUHDV,QGLD FRXQWU\RIGRPLFLOH $VLD$IULFD1RUWK$PHULFD&HQWUDO $PHULFD6RXWK$PHULFDDQG(XURSH

144 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

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For the year ended For the year ended REPORTS STATUTORY OVERVIEW CORPORATE 31st March, 2019 31st March, 2018 India   Outside India   Total 5,977.04 5,011.76

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(`LQFURUH FINANCIAL SECTION Particulars As at As at 31st March, 2019 31st March, 2018 1RQ&XUUHQW$VVHWV Within India   Outside India Nil Nil 1,166.51 1,109.89 V. Information about major customers   &RPSDQ\KDV QR VLQJOH FXVWRPHU IURP ZKRP WKH UHYHQXH LV QRW OHVV WKDQ   RI WKH UHYHQXH IURP H[WHUQDO FXVWRPHUVRIWKH&RPSDQ\ 51 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

(`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 'LYLGHQGSURSRVHGIRU(TXLW\VKDUHKROGHUV#`SHUVKDUH   SUHYLRXV\HDU` SHUVKDUH  7KHUHDUHQRRWKHUVLJQLͤFDQWVXEVHTXHQWHYHQWLWHPVZKLFKUHTXLUHDQDGMXVWPHQWLQͤQDQFLDOVWDWHPHQWV 52 FINANCIAL INSTRUMENTS  )DLUYDOXHRIͤQDQFLDODVVHWVDQGOLDELOLWLHV  7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIͤQDQFLDODVVHWVDQGOLDELOLWLHVE\FDWHJRULHVZHUHDVIROORZV As at 31st March, 2019 (`LQFURUH S. Particulars Amortised Fair value Total carrying No. cost (Level 2) value Assets: i &DVKDQGFDVKHTXLYDOHQWV    ii %DQN%DODQFHVRWKHUWKDQ LL DERYH    iii 7UDGHUHFHLYDEOHV    iv 2WKHUͤQDQFLDODVVHWV   Total 924.25  924.25 Liabilities: i 1RQ&XUUHQW%RUURZLQJV    ii &XUUHQW%RUURZLQJV    iii 7UDGHSD\DEOHV    iv 2WKHUͤQDQFLDOOLDELOLWLHV    Total 1,650.42 0.67 1,651.09

1RWHV7R)LQDQFLDO6WDWHPHQWV 145 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

 7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIͤQDQFLDODVVHWVDQGOLDELOLWLHVE\FDWHJRULHVZHUHDVIROORZV As at 31st March, 2018 (`LQFURUH S. Particulars Amortised Fair value Total carrying No. cost (Level 2) value Assets: i &DVKDQGFDVKHTXLYDOHQWV    ii %DQN%DODQFHVRWKHUWKDQ LL DERYH    iii 7UDGHUHFHLYDEOHV    iv 2WKHUͤQDQFLDODVVHWV   Total 792.70 - 792.70 Liabilities: i 1RQ&XUUHQW%RUURZLQJV    ii &XUUHQW%RUURZLQJV    iii 7UDGHSD\DEOHV    iv 2WKHUͤQDQFLDOOLDELOLWLHV    Total 1,605.12 5.34 1,610.46

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146 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

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   7KHSDUWLFXODUVRIIRUZDUGFRQWUDFWWDNHQDUHJLYHQEHORZ Type No. of Contract "US$ Equivalent (` In Crore) (Million)" As at 31st March, 2019 Sell    %X\    $VDWVW0DUFK Sell    %X\    II Credit risk   &UHGLWULVNLVWKHULVNRIͤQDQFLDOORVVWRWKH&RPSDQ\LIDFXVWRPHURUFRXQWHUSDUW\WRDͤQDQFLDOLQVWUXPHQWIDLOV WRPHHWLWVFRQWUDFWXDOREOLJDWLRQVDQGDULVHVSULQFLSDOO\IURPWKH&RPSDQ\̵VUHFHLYDEOHVIURPFXVWRPHUVDQG FDVKDQGFDVKHTXLYDOHQWV7RPDQDJHWKLVWKH&RPSDQ\SHULRGLFDOO\DVVHVVHVWKHͤQDQFLDOULVNOLPLWVRIWKH FXVWRPHUV WDNLQJ LQWR DFFRXQW WKH SD\PHQW EHKDYLRXU DJLQJ RI RXWVWDQGLQJ FUHGLW UDWLQJV FXUUHQW HFRQRPLF WUHQGVDQGDQDO\VLVRIKLVWRULFDOEDGGHEWVIXUWKHUWKH&RPSDQ\PDNHVSURYLVLRQRQWUDGHUHFHLYDEOHVEDVHGRQ ([SHFWHG&UHGLWORVV (&/ PHWKRGEDVHGRQSURYLVLRQPDWUL[

Trade Receivable   7KH&RPSDQ\̵VH[SRVXUHWRFUHGLWULVNLVLQIOXHQFHGE\WKHLQGLYLGXDOFKDUDFWHULVWLFVRIHDFKFXVWRPHU&UHGLWULVN LVPDQDJHGWKURXJKFUHGLWDSSURYDOVHVWDEOLVKLQJFUHGLWOLPLWVDQGFRQWLQXRXVO\PRQLWRULQJWKHFUHGLWZRUWKLQHVV RIFXVWRPHUVWRZKLFKWKH&RPSDQ\JUDQWVFUHGLWWHUPVLQWKHQRUPDOFRXUVHRIEXVLQHVV7KH&RPSDQ\KDVD GHWDLOHGUHYLHZPHFKDQLVPRIRYHUGXHWUDGHUHFHLYDEOHVDWYDULRXVOHYHOVLQWKHRUJDQLVDWLRQWRHQVXUHSURSHU DWWHQWLRQDQGIRFXVRQUHDOLVDWLRQ

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(`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 1RWSDVWGXH   GD\VSDVWGXH   GD\VSDVWGXH   0RUHWKDQRQH\HDU   837.68 712.59

1RWHV7R)LQDQFLDO6WDWHPHQWV 147 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

Expected credit loss assessment   ([SRVXUHVWRFXVWRPHUVRXWVWDQGLQJDWWKHHQGRIHDFKUHSRUWLQJSHULRGDUHUHYLHZHGE\WKH&RPSDQ\WRGHWHUPLQH LQFXUUHGDQGH[SHFWHGFUHGLWORVVHV0DQDJHPHQWEHOLHYHVWKDWWKHXQLPSDLUHGDPRXQWVWKDWDUHSDVWGXHDUHVWLOO FROOHFWLEOHLQIXOOEDVHGRQKLVWRULFDOSD\PHQWEHKDYLRXUDQGH[WHQVLYHDQDO\VLVRIFXVWRPHUFUHGLWULVN   7KHPRYHPHQWLQWKHDOORZDQFHVIRULPSDLUPHQWLQUHVSHFWRIWUDGHUHFHLYDEOHVGXULQJWKH\HDUZDVDVIROORZV   6XPPDU\RIWKH&RPSDQ\̵VH[SRVXUHWRFUHGLWULVNE\DJHRIWKHRXWVWDQGLQJIURPYDULRXVFXVWRPHUVLVDVIROORZV (`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 2SHQLQJ%DODQFHV   $GG,PSDLUHPHQWORVVUHFRJQLVHGUHYHUVHG   /HVV:ULWHRIIRIEDGGHEWV   Closing balance 11.69 7.08

Cash and Cash Equivalents, Deposit in Banks and other Financial instruments 7KH&RPSDQ\FRQVLGHUVIDFWRUVVXFKDVWUDFNUHFRUGVL]HRIWKHLQVWLWXWLRQPDUNHWUHSXWDWLRQDQGVHUYLFHVWDQGDUGV WRVHOHFWWKHEDQNVZLWKZKLFKEDODQFHVDQGGHSRVLWVDUHPDLQWDLQHG*HQHUDOO\WKHEDODQFHVDUHPDLQWDLQHGZLWK WKHLQVWLWXWLRQVZLWKZKLFKWKH&RPSDQ\KDVDOVRDYDLOHGERUURZLQJV7KH&RPSDQ\GRHVQRWPDLQWDLQVLJQLͤFDQW FDVKDQGGHSRVLWEDODQFHVDVLWKDVVXIͤFLHQWYDFDQWFDVKFUHGLWOLPLWVZLWKLWVEDQNHUV)RURWKHUͤQDQFLDODVVHWV WKH&RPSDQ\PRQLWRUVUDWLQJVFUHGLWVSUHDGVDQGͤQDQFLDOVWUHQJWKVRILWVFRXQWHUSDUWLHV%DVHGRQLWVRQJRLQJ DVVHVVPHQWRIWKHFRXQWHUSDUW\̵VULVNWKH&RPSDQ\DGMXVWLWVH[SRVXUHVWRYDULRXVFRXQWHUSDUWLHV%DVHGRQWKH DVVHVVPHQWWKHUHLVQRLPSDLUPHQWLQRWKHUͤQDQFLDODVVHWV

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(`LQFURUH As at 31st March, 2019 Less than Above Total 1 year 1 year 1RQ&XUUHQW%RUURZLQJV    &XUUHQW%RUURZLQJV    7UDGHSD\DEOHV    2WKHUͤQDQFLDOOLDELOLWLHV    Total 1,316.24 334.85 1,651.09 As at 31st March, 2018 1RQ&XUUHQW%RUURZLQJV    &XUUHQW%RUURZLQJV   7UDGHSD\DEOHV   2WKHUͤQDQFLDOOLDELOLWLHV   Total 1,256.08 354.38 1,610.46

148 ANNUAL REPORT 2018-19 127(672),1$1&,$/67$7(0(176 FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

54 CAPITAL MANAGEMENT  )RUWKHSXUSRVHVRIWKH&RPSDQ\̵VFDSLWDOPDQDJHPHQWFDSLWDOLQFOXGHVLVVXHGFDSLWDODQGDOORWKHUHTXLW\UHVHUYHV7KH SULPDU\REMHFWLYHRIWKH&RPSDQ\̵V&DSLWDO0DQDJHPHQWLVWRPD[LPL]HVKDUHKROGHUYDOXH7KH%RDUGRI'LUHFWRUVPRQLWRUV WKH UHWXUQ RQ FDSLWDO GLYLGHQG WR VKDUHKROGHUV PDLQWDLQ EDODQFH EHWZHHQ FDSLWDO DQG ERUURZLQJ LQ WKH OLJKW RI FKDQJHV

LQHFRQRPLFHQYLURQPHQWDQGWKHEXVLQHVVUHTXLUHPHQWV,QRUGHUWRDFKLHYHWKLVRYHUDOOREMHFWLYHWKH&RPSDQ\̵VFDSLWDO REPORTS STATUTORY OVERVIEW CORPORATE PDQDJHPHQWDPRQJVWRWKHUWKLQJVDLPVWRHQVXUHWKDWLWPHHWVͤQDQFLDOFRYHQDQWVDWWDFKHGWRWKHLQWHUHVWEHDULQJORDQV DQGERUURZLQJV  )XUWKHUWKH&RPSDQ\PRQLWRUVFDSLWDOXVLQJJHDULQJUDWLRZKLFKLVQHWGHEWGLYLGHGE\(TXLW\DQGQHWGHEWDVXQGHU (`LQFURUH Particulars As at As at 31st March, 2019 31st March, 2018 'HEW FRQVLVWRIORQJWHUPDQGVKRUWWHUPERUURZLQJVUHIHUQRWH   FINANCIAL SECTION DQG /HVV&DVKDQGFDVKHTXLYDOHQWV   1HW'HEW   (TXLW\   (TXLW\DQG1HW'HEW   *HDULQJUDWLRLQ  

55 EXPENDITURE ON R&D  &RPSDQ\KDVPDGH&DSLWDODQG5HYHQXHH[SHQGLWXUHIURPWKHͤQDQFLDO\HDUWRLQUHVSHFWRILWV8QLW 6XU\D7HFKQRORJ\ ,QQRYDWLRQ&HQWUH 5 '/$% '+RVLHU\&RPSOH[3KDVH̰,,1RLGD 83 DVWDEXODWHGEHORZ  &DSLWDO 5HYHQXH([SHQGLWXUH%UHDN8S)LQDQFLDO

1RWHV7R)LQDQFLDO6WDWHPHQWV 149 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SURYA ROSHNI LIMITED

REPORT ON THE AUDIT OF CONSOLIDATED FINANCIAL Basis for Opinion STATEMENTS :H FRQGXFWHG RXU DXGLW RI WKH FRQVROLGDWHG ͤQDQFLDO Opinion statements in accordance with the Standards on Auditing :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ FRQVROLGDWHG ͤQDQFLDO VSHFLͤHG XQGHU VHFWLRQ    RI WKH $FW 6$V  2XU statements of SURYA ROSHNI LIMITED (“the Parent”/ “the responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the Holding Company”) and its subsidiary, (the Parent/ Holding Consolidated Financial Statements section of our report. We Company and its subsidiary together referred to as “the are independent of the Group in accordance with the Code Group”), which comprise the Consolidated Balance Sheet of Ethics issued by the Institute of Chartered Accountants as at 31st March 2019, and the Consolidated Statement of of India (ICAI) together with the ethical requirements that are 3URͤWDQG/RVV LQFOXGLQJ2WKHU&RPSUHKHQVLYH,QFRPH WKH UHOHYDQWWRRXUDXGLWRIWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV Consolidated Statement of Cash Flows and the Consolidated under the provisions of the Act and the Rules made thereunder, Statement of Changes in Equity for the year then ended, DQG ZH KDYH IXOͤOOHG RXU RWKHU HWKLFDO UHVSRQVLELOLWLHV LQ DQGDVXPPDU\RIVLJQLͤFDQWDFFRXQWLQJSROLFLHVDQGRWKHU accordance with these requirements and the ICAI’s Code of explanatory information. Ethics. We believe that the audit evidence obtained by us is In our opinion and to the best of our information and according VXIͤFLHQW DQG DSSURSULDWH WR SURYLGH D EDVLV IRU RXU DXGLW to the explanations given to us, the aforesaid consolidated RSLQLRQRQWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV ͤQDQFLDO VWDWHPHQWV JLYH WKH LQIRUPDWLRQ UHTXLUHG E\ WKH Key Audit Matters Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Key audit matters are those matters that, in our professional Accounting Standards prescribed under section 133 of the MXGJPHQW ZHUH RI PRVW VLJQLͤFDQFH LQ RXU DXGLW RI WKH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV RI WKH FXUUHQW SHULRG Act read with the Companies (Indian Accounting Standards) These matters were addressed in the context of our audit Rules, 2015, as amended (‘Ind AS’) , and other accounting RI WKH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV DV D ZKROH DQG principles generally accepted in India, of the consolidated in forming our opinion thereon, and we do not provide a state of affairs of the Group as at 31st March, 2019, and their separate opinion on these matters. We have determined the FRQVROLGDWHG SURͤW WKHLU FRQVROLGDWHG WRWDO FRPSUHKHQVLYH matters described below to be the key audit matters to be income, their consolidated cash flows and their consolidated communicated in our report. changes in equity for the year ended on that date.

S. Key Audit Matters Auditor’s Response No. 1. Accuracy of recognition, measurement, presentation and Principal Audit Procedures disclosures of revenues and other related balances in Our audit approach was a combination of test of internal controls view of adoption of Ind AS 115 “Revenue from Contracts and substantive procedures which included the following: with Customers” (new revenue accounting standard) ̽(YDOXDWHGWKHGHVLJQRILQWHUQDOFRQWUROVUHODWLQJWRUHFRUGLQJRI The application of the new revenue accounting standard efforts incurred and estimation of efforts required to complete LQYROYHVFHUWDLQNH\MXGJHPHQWVUHODWLQJWRLGHQWLͤFDWLRQ the performance obligations and also tested operating of distinct performance obligations, determination of effectiveness of controls. WUDQVDFWLRQSULFHRIWKHLGHQWLͤHGSHUIRUPDQFHREOLJDWLRQV In case of contracts in the nature of sale of goods, selected a sample the appropriateness of the basis used to measure revenue RIFRQWUDFWVDQGYHULͤHGWKDWWKHUHYHQXHLVUHFRJQLVHGRQIXOͤOOPHQW recognised over a period. of criteria for recognition of revenue. The revenue is recognised based on estimated cost For contracts in the nature of services: of present and deferred obligations. This estimate has ̽ 7HVWHGWKHGHVLJQDQGRSHUDWLQJHIIHFWLYHQHVVRIWKHLQWHUQDO involvement of judgement, as it requires consideration controls relating to estimated cost. of progress of the contract, cost incurred till date and ̽ 5HYLHZHG H[SHFWHG FRVW WR EH LQFXUUHG WR FRPSOHWH WKH the cost required to complete the remaining contract remaining performance obligations. performance obligations. ̽ 3HUIRUPHG DQDO\WLFDO SURFHGXUHV DQG WHVW RI GHWDLOV IRU Refer Notes 3.13(a) and 44 to the Consolidated Financial reasonableness of incurred and estimated efforts. Statements. ̽ 9HULͤHG WKDW UHYHQXH KDV EHHQ UHFRJQLVHG WR WKH H[WHQW RI performance obligations completed as at reporting date

150 ANNUAL REPORT 2018-19 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SURYA ROSHNI LIMITED (Contd.)

S. Key Audit Matters Auditor’s Response No. 2 Grants under Investment Promotion Assistance Principal Audit Procedures scheme We have

The Parent Company has recognised revenue of ` ̽ UHYLHZHGWKH,QGXVWULDOSROLF\DQGSURFHGXUHVUHODWHGWR REPORTS STATUTORY OVERVIEW CORPORATE 30.27 crore under the head Investment Promotion grants under Investment Promotion Assistance schemes Assistance scheme. Amount due for recovery as on of the respective state Governments 31st March 2019 is ` 46.61 crore which is disclosed ̽ H[DPLQHG UHJLVWUDWLRQ IRU WKH VFKHPH VXEVHTXHQW under head other current assets. departmental orders and regulations issued from time to Refer Note 43 (a) & (b) to the Consolidated Financial time Statement ̽ FKHFNHGWKHHOLJLELOLW\FULWHULDLQFOXGLQJLQYHVWPHQWPDGH FINANCIAL SECTION by the Company ̽ DOVRYHULͤHGWKHVDOHVSD\PHQWRIWD[HVEDVHLQFHQWLYH and the eligible amount of the grants. ̽ UHYLHZHGFDOFXODWLRQRIWKHFODLPVDFFRXQWHGIRUE\WKH Company and likelihood of the recoverability. Management has explained that delay is due to transition from 9$7WR*67UHJLPH 3. Warranty Provisions Principal Audit Procedures The Company offers warranties on certain products We have sold in lighting and consumer durable segment ̽ H[DPLQHGWKH SURGXFWV FDWHJRULHV ZKHUH WKH &RPSDQ\ and accordingly Company has recorded warranty has offered warranties and also its tenure so as to provisions which are judgemental in nature. These determine the warranty provisions. provisions are required to be recorded based on ̽ UHYLHZHG WKH VDOHV YROXPH RI WKH UHVSHFWLYH SURGXFW appropriate estimates of the cost of repair and categories and the outstanding warranty commitments replacements of the products. Warranty provisions their against. of ` 44.41 crore as on 31st March 2019. ̽ JRQHWKURXJK WKH SURFHGXUHV RI LVVXDQFH RI WKH FUHGLW Refer Note 42 to the Consolidated Financial notes and replacement for warranties/repairs of the Statement products. ̽ UHYLHZHG WKH KLVWRULFDO WUHQGV DQG FRVW HVWLPDWHV considering the agreement with customers and back to back arrangement with vendors, for requirement of warranty provisions. Based on evidence obtained, we concluded that management’s process for identifying and quantifying warranty provisions was appropriate and that the resulting provision was reasonable.

INFORMATION OTHER THAN THE CONSOLIDATED FINANCIAL STATEMENTS AND AUDITOR’S REPORT THEREON The Parent’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report and &RUSRUDWH*RYHUQDQFHEXWGRHVQRWLQFOXGHWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVDQGRXUDXGLWRU̵VUHSRUWWKHUHRQ 2XURSLQLRQRQWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVGRHVQRWFRYHUWKHRWKHULQIRUPDWLRQDQGZHGRQRWH[SUHVVDQ\IRUPRI assurance conclusion thereon. ,QFRQQHFWLRQZLWKRXUDXGLWRIWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVRXUUHVSRQVLELOLW\LVWRUHDGWKHRWKHULQIRUPDWLRQDQGLQ GRLQJVRFRQVLGHUZKHWKHUWKHRWKHULQIRUPDWLRQLVPDWHULDOO\LQFRQVLVWHQWZLWKWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVRURXU knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independent Auditors’ Report 151 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SURYA ROSHNI LIMITED (Contd.)

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED As part of an audit in accordance with SAs, we exercise FINANCIAL STATEMENTS professional judgment and maintain professional skepticism The Parent’s/ Holding Company’s Board of Directors is throughout the audit. We also: UHVSRQVLEOHIRUWKHPDWWHUVVWDWHGLQVHFWLRQ  RIWKH ̽ ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQW Act with respect to the preparation of these consolidated RIWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVZKHWKHUGXH ͤQDQFLDO VWDWHPHQWV WKDW JLYH D WUXH DQG IDLU YLHZ RI WKH to fraud or error, design and perform audit procedures FRQVROLGDWHG ͤQDQFLDO SRVLWLRQ FRQVROLGDWHG ͤQDQFLDO responsive to those risks, and obtain audit evidence performance including other comprehensive income , WKDW LV VXIͤFLHQW DQG DSSURSULDWH WR SURYLGH D EDVLV consolidated cash flows and consolidated changes in for our opinion. The risk of not detecting a material equity of the Group in accordance with the Ind AS and misstatement resulting from fraud is higher than for other accounting principles generally accepted in India. The one resulting from error, as fraud may involve collusion, respective Board of Directors of the companies included in forgery, intentional omissions, misrepresentations, or the Group are responsible for maintenance of adequate the override of internal control. accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for ̽ 2EWDLQDQ XQGHUVWDQGLQJ RI LQWHUQDO ͤQDQFLDO FRQWURO preventing and detecting frauds and other irregularities; relevant to the audit in order to design audit procedures selection and application of appropriate accounting policies; that are appropriate in the circumstances. Under making judgments and estimates that are reasonable VHFWLRQ  L RIWKH$FWZHDUHDOVRUHVSRQVLEOHIRU and prudent; and design, implementation and maintenance expressing our opinion on whether the Parent/ Holding RI DGHTXDWH LQWHUQDO ͤQDQFLDO FRQWUROV WKDW ZHUH RSHUDWLQJ &RPSDQ\ KDV DGHTXDWH LQWHUQDO ͤQDQFLDO FRQWUROV effectively for ensuring the accuracy and completeness system in place and the operating effectiveness of such of the accounting records, relevant to the preparation and controls. SUHVHQWDWLRQRIWKHͤQDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQG ̽ (YDOXDWH WKH DSSURSULDWHQHVV RI DFFRXQWLQJ SROLFLHV fair view and are free from material misstatement, whether used and the reasonableness of accounting estimates due to fraud or error, which have been used for the purpose of and related disclosures made by the management. SUHSDUDWLRQRIWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVE\WKH ̽ &RQFOXGHRQWKHDSSURSULDWHQHVVRIPDQDJHPHQW̵VXVH Directors of the Parent/ Holding Company, as aforesaid. of the going concern basis of accounting and, based ,Q SUHSDULQJ WKH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV WKH on the audit evidence obtained, whether a material respective Board of Directors of the companies included uncertainty exists related to events or conditions that in the Group are responsible for assessing the ability of PD\FDVWVLJQLͤFDQWGRXEWRQWKHDELOLW\RIWKH*URXS the Group to continue as a going concern, disclosing, as to continue as a going concern. If we conclude that a applicable, matters related to going concern and using the material uncertainty exists, we are required to draw going concern basis of accounting unless the management attention in our auditor’s report to the related disclosures either intends to liquidate or cease operations, or has no LQ WKH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV RU LI VXFK realistic alternative but to do so. disclosures are inadequate, to modify our opinion. Our The respective Board of Directors of the companies included conclusions are based on the audit evidence obtained LQWKH*URXSDUHDOVRUHVSRQVLEOHIRURYHUVHHLQJWKHͤQDQFLDO up to the date of our auditor’s report. However, future reporting process of the Group. events or conditions may cause the Group to cease to continue as a going concern. AUDITOR’S RESPONSIBILITY FOR THE AUDIT OF THE ̽ (YDOXDWHWKHRYHUDOOSUHVHQWDWLRQVWUXFWXUHDQGFRQWHQW CONSOLIDATED FINANCIAL STATEMENTS RIWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVLQFOXGLQJWKH Our objectives are to obtain reasonable assurance about GLVFORVXUHV DQG ZKHWKHU WKH FRQVROLGDWHG ͤQDQFLDO ZKHWKHU WKH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV DV D ZKROH statements represent the underlying transactions and are free from material misstatement, whether due to fraud events in a manner that achieves fair presentation. or error, and to issue an auditor’s report that includes our Materiality is the magnitude of misstatements in the opinion. Reasonable assurance is a high level of assurance, FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV WKDW LQGLYLGXDOO\ RU LQ but is not a guarantee that an audit conducted in accordance aggregate, makes it probable that the economic decisions of a with SAs will always detect a material misstatement when it UHDVRQDEO\NQRZOHGJHDEOHXVHURIWKHFRQVROLGDWHGͤQDQFLDO exists. Misstatements can arise from fraud or error and are statements may be influenced. We consider quantitative considered material if, individually or in the aggregate, they materiality and qualitative factors in (i) planning the scope of could reasonably be expected to influence the economic our audit work and in evaluating the results of our work; and decisions of users taken on the basis of these consolidated LL WRHYDOXDWHWKHHIIHFWRIDQ\LGHQWLͤHGPLVVWDWHPHQWVLQ ͤQDQFLDOVWDWHPHQWV

152 ANNUAL REPORT 2018-19 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SURYA ROSHNI LIMITED (Contd.)

WKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV Company as on 31st March, 2019 taken on record We communicate with those charged with governance of the by the Board of Directors of the Company and its Parent/ Holding Company and such other entities included subsidiary Company, none of the directors of the LQWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVRIZKLFKZHDUHWKH *URXSFRPSDQLHVLVGLVTXDOLͤHGDVRQVW0DUFK independent auditors regarding, among other matters, the 2019 from being appointed as a director in terms STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE SODQQHGVFRSHDQGWLPLQJRIWKHDXGLWDQGVLJQLͤFDQWDXGLW RI6HFWLRQ  RIWKH$FW ͤQGLQJV LQFOXGLQJ DQ\ VLJQLͤFDQW GHͤFLHQFLHV LQ LQWHUQDO  I  :LWKUHVSHFWWRWKHDGHTXDF\RIWKHLQWHUQDOͤQDQFLDO control that we identify during our audit. FRQWUROVRYHUͤQDQFLDOUHSRUWLQJDQGWKHRSHUDWLQJ effectiveness of such controls, refer to our separate We also provide those charged with governance with a Report in “Annexure A” . Our report expresses an statement that we have complied with relevant ethical XQPRGLͤHGRSLQLRQRQWKHDGHTXDF\DQGRSHUDWLQJ requirements regarding independence, and to communicate

HIIHFWLYHQHVV RI LQWHUQDO ͤQDQFLDO FRQWUROV RYHU FINANCIAL SECTION with them all relationships and other matters that may ͤQDQFLDOUHSRUWLQJRIWKRVHFRPSDQLHV reasonably be thought to bear on our independence, and where applicable, related safeguards. g) With respect to the other matters to be included in the Auditor’s Report in accordance with the From the matters communicated with those charged with requirements of section 197(16) of the Act, as governance, we determine those matters that were of amended, In our opinion and to the best of our PRVWVLJQLͤFDQFHLQWKHDXGLWRIWKHFRQVROLGDWHGͤQDQFLDO information and according to the explanations statements of the current period and are therefore the key given to us, the remuneration paid by the Parent/ audit matters. We describe these matters in our auditor’s Holding Company to its directors during the year is report unless law or regulation precludes public disclosure in accordance with the provisions of section 197 of about the matter or when, in extremely rare circumstances, the Act. we determine that a matter should not be communicated in our report because the adverse consequences of doing so h) With respect to the other matters to be included in would reasonably be expected to outweigh the public interest the Auditor’s Report in accordance with Rule 11 of EHQHͤWVRIVXFKFRPPXQLFDWLRQ WKH&RPSDQLHV $XGLWDQG$XGLWRUV 5XOHV as amended in our opinion and to the best of our Report on Other Legal and Regulatory Requirements information and according to the explanations  $VUHTXLUHGE\6HFWLRQ  RIWKH$FWEDVHGRQRXU given to us: audit, we report, to the extent applicable that:   L 7KH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV a) We have sought and obtained all the information disclose the impact of pending litigations and explanations which to the best of our RQ WKH FRQVROLGDWHG ͤQDQFLDO SRVLWLRQ knowledge and belief were necessary for the of the Group. – Refer Note No. 41 to the purposes of our audit of the aforesaid consolidated consolidated Financial Statements. ͤQDQFLDOVWDWHPHQWV ii. The Group did not have any material b) In our opinion, proper books of account as required foreseeable losses on long-term contracts by law relating to preparation of the aforesaid including derivative contracts. FRQVROLGDWHGͤQDQFLDOVWDWHPHQWVKDYHEHHQNHSW iii. There has been no delay in transferring so far as it appears from our examination of those amounts, required to be transferred, to the books Investor Education and Protection Fund by c) The Consolidated Balance Sheet, the Consolidated the Parent/ Holding Company. 6WDWHPHQW RI 3URͤW DQG /RVV LQFOXGLQJ 2WKHU Comprehensive Income, the Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation RIWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV For Ashok Kumar Goyal & Co. d) In our opinion, the aforesaid consolidated Chartered Accountants (Firm Registration – 002777N) ͤQDQFLDO  VWDWHPHQWV  FRPSO\  ZLWK  WKH  ,QG $6 VSHFLͤHGXQGHU6HFWLRQRIWKH$FW (CA. Ashok Kumar) e) On the basis of the written representations Place: New Delhi Partner, F.C.A received from the directors of the Parent/ Holding Dated: 21st May, 2019 Membership No. 017644

Independent Auditors’ Report 153 “ANNEXURE A” TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL STATEMENTS OF SURYA ROSHNI LIMITED.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) as referred to in paragraph 1(f) of ‘Report on Other Legal and Regulatory Requirements’ section

:HKDYHDXGLWHGWKHLQWHUQDOͤQDQFLDOFRQWUROVRYHUͤQDQFLDO LQWHUQDO ͤQDQFLDO FRQWUROV RYHU ͤQDQFLDO UHSRUWLQJ ZDV reporting of SURYA ROSHNI LIMITED (“the Parent”/ “the established and maintained and if such controls operated Holding Company”) and its subsidiary as of March 31, 2019 effectively in all material respects. LQFRQMXQFWLRQ ZLWKRXUDXGLWRIWKHFRQVROLGDWHG ͤQDQFLDO Our audit involves performing procedures to obtain audit statements of the Company for the year ended on that date. HYLGHQFH DERXW WKH DGHTXDF\ RI WKH LQWHUQDO ͤQDQFLDO FRQWUROV V\VWHP RYHU ͤQDQFLDO UHSRUWLQJ DQG WKHLU MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL RSHUDWLQJ HIIHFWLYHQHVV 2XU DXGLW RI LQWHUQDO ͤQDQFLDO CONTROLS FRQWUROV RYHU ͤQDQFLDO UHSRUWLQJ LQFOXGHG REWDLQLQJ The Board of Directors of the Company and its subsidiary are DQ XQGHUVWDQGLQJ RI LQWHUQDO ͤQDQFLDO FRQWUROV RYHU UHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDOͤQDQFLDO ͤQDQFLDO UHSRUWLQJ DVVHVVLQJ WKH ULVN WKDW D PDWHULDO FRQWUROVEDVHGRQWKHLQWHUQDOFRQWURORYHUͤQDQFLDOUHSRUWLQJ weakness exists, and testing and evaluating the design criteria established by the respective companies considering and operating effectiveness of internal control based on the essential components of internal control stated in the the assessed risk. The procedures selected depend on Guidance Note on Audit of Internal Financial Controls over the auditor’s judgement, including the assessment of the Financial Reporting issued by the Institute of Chartered ULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHͤQDQFLDOVWDWHPHQWV Accountants of India. These responsibilities include the whether due to fraud or error. design, implementation and maintenance of adequate internal We believe that the audit evidence we have obtained is ͤQDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJ VXIͤFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLW WKH RUGHUO\ DQG HIͤFLHQW FRQGXFW RI LWV EXVLQHVV LQFOXGLQJ RSLQLRQ RQ WKH LQWHUQDO ͤQDQFLDO FRQWUROV V\VWHP RYHU adherence to Company’s policies, the safeguarding of its ͤQDQFLDOUHSRUWLQJRI&RPSDQ\DQGLWVVXEVLGLDU\ assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the MEANING OF INTERNAL FINANCIAL CONTROLS OVER WLPHO\SUHSDUDWLRQRIUHOLDEOHͤQDQFLDOLQIRUPDWLRQDVUHTXLUHG FINANCIAL REPORTING under the Companies Act, 2013. $ &RPSDQ\̵V LQWHUQDO ͤQDQFLDO FRQWURO RYHU ͤQDQFLDO AUDITORS’ RESPONSIBILITY reporting is a process designed to provide reasonable DVVXUDQFH UHJDUGLQJ WKH UHOLDELOLW\ RI ͤQDQFLDO UHSRUWLQJ Our responsibility is to express an opinion on the internal DQG WKH SUHSDUDWLRQ RI ͤQDQFLDO VWDWHPHQWV IRU H[WHUQDO ͤQDQFLDOFRQWUROVRYHUͤQDQFLDOUHSRUWLQJRI&RPSDQ\DQG purposes in accordance with generally accepted its subsidiary based on our audit. We conducted our audit DFFRXQWLQJ SULQFLSOHV $ &RPSDQ\̵V LQWHUQDO ͤQDQFLDO in accordance with the Guidance Note on Audit of Internal FRQWURORYHUͤQDQFLDOUHSRUWLQJLQFOXGHVWKRVHSROLFLHVDQG Financial Controls Over Financial Reporting (the “Guidance procedures that Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under (1) pertain to the maintenance of records that, in reasonable VHFWLRQ  RIWKH&RPSDQLHV$FWWRWKHH[WHQW detail, accurately and fairly reflect the transactions and DSSOLFDEOH WRDQDXGLWRILQWHUQDOͤQDQFLDOFRQWUROV7KRVH dispositions of the assets of the entity; Standards and the Guidance Note require that we comply (2) provide reasonable assurance that transactions with ethical requirements and plan and perform the audit are recorded as necessary to permit preparation of to obtain reasonable assurance about whether adequate ͤQDQFLDO VWDWHPHQWV LQ DFFRUGDQFH ZLWK JHQHUDOO\

154 ANNUAL REPORT 2018-19 “ANNEXURE A” TO THE INDEPENDENT AUDITORS’ REPORT (CONTD.)

accepted accounting principles, and that receipts OPINION and expenditures of the entity are being made only in In our opinion, the Company and its subsidiary have, in all accordance with authorisations of management and PDWHULDOUHVSHFWVDQDGHTXDWHLQWHUQDOͤQDQFLDOFRQWUROV directors of the entity; and V\VWHPRYHUͤQDQFLDOUHSRUWLQJDQGVXFKLQWHUQDOͤQDQFLDO

(3) provide reasonable assurance regarding prevention FRQWUROVRYHUͤQDQFLDOUHSRUWLQJZHUHRSHUDWLQJHIIHFWLYHO\ REPORTS STATUTORY OVERVIEW CORPORATE or timely detection of unauthorised acquisition, use, as at March 31, 2019, based on the internal control over or disposition of the Company’s assets that could ͤQDQFLDO UHSRUWLQJ FULWHULD HVWDEOLVKHG E\ WKH UHVSHFWLYH KDYHDPDWHULDOHIIHFWRQWKHͤQDQFLDOVWDWHPHQWV companies considering the essential components of internal control stated in the Guidance Note on Audit of INHERENT LIMITATIONS OF INTERNAL FINANCIAL Internal Financial Controls Over Financial Reporting issued

CONTROLS OVER FINANCIAL REPORTING FINANCIAL SECTION by the Institute of Chartered Accountants of India. %HFDXVH RI WKH LQKHUHQW OLPLWDWLRQV RI LQWHUQDO ͤQDQFLDO FRQWUROV RYHU ͤQDQFLDO UHSRUWLQJ LQFOXGLQJ WKH SRVVLELOLW\ of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the For Ashok Kumar & Co. LQWHUQDO ͤQDQFLDO FRQWUROV RYHU ͤQDQFLDO UHSRUWLQJ WR IXWXUH Chartered Accountants (Firm Registration – 002777N) SHULRGVDUHVXEMHFWWRWKHULVNWKDWWKHLQWHUQDOͤQDQFLDOFRQWURO RYHUͤQDQFLDOUHSRUWLQJPD\EHFRPHLQDGHTXDWHEHFDXVHRI (CA. Ashok Kumar) changes in conditions, or that the degree of compliance with Place: New Delhi Partner, F.C.A the policies or procedures may deteriorate. Dated: 21st May, 2019 Membership No. 017644

Independent Auditors’ Report 155 CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2019

(` in crore) Particulars Note As at No. 31st March, 2019 I ASSETS 1 Non-current assets a Property, plant and equipment 5 1,088.58 b Capital work-in-progress 5  c Financial assets i 2WKHUͤQDQFLDODVVHWV 6  e Other non-current assets 7 7.25 1,166.46 2 Current assets a Inventories 8  b Financial assets i Trade receivables 9 835.32 ii Cash and cash equivalents 10  iii Bank balances other than (ii) above 11  iv 2WKHUͤQDQFLDODVVHWV 12 38.23 c Current tax assets (net) 13 0.27 d Other current assets   1,862.21 Total Assets 3,028.67 II EQUITY AND LIABILITIES Equity Equity share capital 15  Other equity 16  1,151.86 LIABILITIES 1 Non-current liabilities a Financial liabilities i Borrowings 17  ii 2WKHUͤQDQFLDOOLDELOLWLHV 18  b Provisions 19 50.68 c Deferred tax liabilities (net) 20 79.91 475.92 2 Current liabilities a Financial liabilities i Borrowings 21 796.67 ii Trade payables A) Total outstanding dues of micro enterprises and small 22  enterprises; B) Total outstanding dues of creditors other than micro enterprises 22 326.61 and small enterprises; iii 2WKHUͤQDQFLDOOLDELOLWLHV 23 159.09 b Other current liabilities   c Provisions 25 52.37 d Current tax liabilities (net) 26 1.56 1,400.89 Total Equity and liabilities 3,028.67 6HHDFFRPSDQ\LQJQRWHVWRWKHͤQDQFLDOVWDWHPHQWV

As per our report of even date

For Ashok Kumar Goyal & Co. Chartered Accountants J P Agarwal Raju Bista T.S.Bhattacharya (Firm Registration No.ICAI: 02777N) Chairman Managing Director Director ',1 DIN: 01299297 DIN: 00157305 K K Narula S S Khurana Vinay Surya Director Director Director ',1 ',1 DIN: 00515803 CA Ashok Kumar Ravinder K Narang Sunil Sikka S K Awasthi Partner FCA Director Director Director 0HPEHUVKLS1R ',1 DIN: 08063385 DIN: 02162923 R N Maloo Ramanjit Singh Tarun Baldua Place: New Delhi Executive Director & Group Chief CEO (Lighting Operations) CEO (Steel Operations) Dated: 21st May, 2019 )LQDQFLDO2IͤFHU B B Singal 6U93 &RPSDQ\6HFUHWDU\

156 ANNUAL REPORT 2018-19 CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2019

(` in crore ) Particulars Note Year Ended No. 31st March, 2019 I REVENUE FROM OPERATIONS 28  II OTHER INCOME 29

 REPORTS STATUTORY OVERVIEW CORPORATE III TOTAL INCOME (I+II) 5,979.15 IV EXPENSES Cost of materials consumed 30  Purchases of stock-in-trade 31 288.60 &KDQJHVLQLQYHQWRULHVRIͤQLVKHGJRRGVVWRFNLQWUDGHDQGZRUNLQSURJUHVV 32 38.88 Excise duty -

(PSOR\HHEHQHͤWVH[SHQVH 33 293.76 FINANCIAL SECTION Finance costs  115.08 Depreciation and amortisation expense 35 88.51 Other expenses 36 580.95 Total Expenses 5,806.67 V PROFIT BEFORE TAX (III-IV) 172.48 VI TAX EXPENSE Current tax 27 53.58 Deferred tax 20 (1.91) VII PROFIT/(LOSS) FOR THE PERIOD 120.81 VIII OTHER COMPREHENSIVE INCOME 37 L ,WHPVWKDWZLOOQRWEHUHFODVVLͤHGWRSURͤWRUORVV   LL ,QFRPHWD[UHODWLQJWRLWHPVWKDWZLOOQRWEHUHFODVVLͤHGWRSURͤWRUORVV 1.69 Total other comprehensive income (3.15) IX TOTAL COMPREHENSIVE INCOME(VII+VIII) 117.66 Earnings per equity shares (face value of ` 10/-each) 38 1) Basic (in `) 22.20 2) Diluted (in `) 22.20 6HHDFFRPSDQ\LQJQRWHVWRWKHͤQDQFLDOVWDWHPHQWV

As per our report of even date

For Ashok Kumar Goyal & Co. Chartered Accountants J P Agarwal Raju Bista T.S.Bhattacharya (Firm Registration No.ICAI: 02777N) Chairman Managing Director Director ',1 DIN: 01299297 DIN: 00157305 K K Narula S S Khurana Vinay Surya Director Director Director ',1 ',1 DIN: 00515803 CA Ashok Kumar Ravinder K Narang Sunil Sikka S K Awasthi Partner FCA Director Director Director 0HPEHUVKLS1R ',1 DIN: 08063385 DIN: 02162923 R N Maloo Ramanjit Singh Tarun Baldua Place: New Delhi Executive Director & Group Chief CEO (Lighting Operations) CEO (Steel Operations) Dated: 21st May, 2019 )LQDQFLDO2IͤFHU B B Singal 6U93 &RPSDQ\6HFUHWDU\

&RQVROLGDWHG%DODQFH6KHHW3URͤWDQG/RVV 157 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2019

(` in crore) Particulars Year ended 31st March, 2019 A. CASH FLOW FROM OPERATING ACTIVITIES a. 1HWRSHUDWLQJSURͤWEHIRUHWD[  Adjustment for : 5HPHDVXUHPHQWJDLQORVVRQGHͤQHGEHQHͤWSODQVURXWHGWKURXJK2&,   Depreciation and amortisation of Property, Plant and Equipment 88.51 3URͤW /RVVRQ6DOH5HWLUHPHQWRI3URSHUW\3ODQWDQG(TXLSPHQW 1HW 0.03 Allowance for doubtful debts / bad debts W/off 5.12 Finance cost 115.08 b. 2SHUDWLQJSURͤWEHIRUH:RUNLQJ&DSLWDOFKDQJHV 376.38 Adjustment for : (Increase) / Decrease in Trade receivables (127.85) ,QFUHDVH 'HFUHDVHLQ2WKHUͤQDQFLDODVVHWV (28.70) (Increase) / Decrease in Other assets (30.72) (Increase)/Decrease in Inventories (16.96) Increase / (Decrease) in Trade payables/ provisions (31.80) ,QFUHDVH 'HFUHDVH LQ2WKHUͤQDQFLDOOLDELOLWLHV  Increase / (Decrease) in Other liabilities 9.27 (221.28) c. Cash generated from Operations before tax (a+b) 155.10 d. Net Direct Taxes paid (34.99) Net cash flow from operating activities A = (c+d) 120.11 B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Property, Plant and Equipment. (105.82) Sale of Property, Plant and Equipment  Net cash flow used in investing activities (105.28) Net cash from operating and investing activities (A+B) 14.83 C. CASH FLOW FROM FINANCING ACTIVITIES Repayment of non current borrowings ( including current maturities)   Proceeds from non current borrowings 55.00 Short term borrowings Increase /(Decrease) during the year (net) 79.62 Payment of dividend (10.88) Payment of dividend distribution tax   Finance cost (118.33) 1HWFDVKXVHGLQͤQDQFLQJDFWLYLWLHV (37.31) 1HWFDVK XVHG LQIURPRSHUDWLQJLQYHVWLQJDQGͤQDQFLQJDFWLYLWLHV $% & (22.48) Net increase/(decrease) in Cash & Cash equivalent   Opening balance  Closing balance of Cash & Cash equivalent (refer note no.10 ) 

As per our report of even date

For Ashok Kumar Goyal & Co. Chartered Accountants J P Agarwal Raju Bista T.S.Bhattacharya (Firm Registration No.ICAI: 02777N) Chairman Managing Director Director ',1 DIN: 01299297 DIN: 00157305 K K Narula S S Khurana Vinay Surya Director Director Director ',1 ',1 DIN: 00515803 CA Ashok Kumar Ravinder K Narang Sunil Sikka S K Awasthi Partner FCA Director Director Director 0HPEHUVKLS1R ',1 DIN: 08063385 DIN: 02162923 R N Maloo Ramanjit Singh Tarun Baldua Place: New Delhi Executive Director & Group Chief CEO (Lighting Operations) CEO (Steel Operations) Dated: 21st May, 2019 )LQDQFLDO2IͤFHU B B Singal 6U93 &RPSDQ\6HFUHWDU\

158 ANNUAL REPORT 2018-19 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2019

A. EQUITY SHARE CAPITAL (` in crore ) Particulars As at 31st March, 2019 Balance at the beginning of the reporting period   Balance at the end of the reporting period 5,44,08,974 54.41 STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE B. OTHER EQUITY (` in crore ) Particulars Reserves and surplus Total Forfeiture Securities Capital Capital General Retained Other reserve premium redemption reserve reserve earnings comprehensive

reserve income FINANCIAL SECTION Balance as at March 31, 2018 17.63 142.71 3.00 124.69 71.36 642.21 (8.69) 992.91 3URͤWIRUWKH\HDU 120.81 (3.15) 117.66 Total comprehensive income for the year - - - - - 120.81 (3.15) 117.66 Payment of dividend (10.88) (10.88) Payment of dividend distribution tax   (2.24) 7UDQVIHURISURͤWIRUWKH\HDUWR General reserve 13.00 (13.00) - Balance as at March 31, 2019 17.63 142.71 3.00 124.69 84.36 736.90 (11.84) 1,097.45

As per our report of even date

For Ashok Kumar Goyal & Co. Chartered Accountants J P Agarwal Raju Bista T.S.Bhattacharya (Firm Registration No.ICAI: 02777N) Chairman Managing Director Director ',1 DIN: 01299297 DIN: 00157305 K K Narula S S Khurana Vinay Surya Director Director Director ',1 ',1 DIN: 00515803 CA Ashok Kumar Ravinder K Narang Sunil Sikka S K Awasthi Partner FCA Director Director Director 0HPEHUVKLS1R ',1 DIN: 08063385 DIN: 02162923 R N Maloo Ramanjit Singh Tarun Baldua Place: New Delhi Executive Director & Group Chief CEO (Lighting Operations) CEO (Steel Operations) Dated: 21st May, 2019 )LQDQFLDO2IͤFHU B B Singal 6U93 &RPSDQ\6HFUHWDU\

Consolidated Cash Flow / changes in equity 159 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019

1 CORPORATE AND GENERAL INFORMATION VXEVLGLDU\6SHFLͤFDOO\LQFRPHDQGH[SHQVHVRID Surya Roshni Limited (“SRL” or ‘’the Company’’) subsidiary acquired or disposed of during the year is domiciled and incorporated in India and its DUHLQFOXGHGLQWKHFRQVROLGDWHGVWDWHPHQWRISURͤW shares are publicly traded on the National Stock and loss from the date the Company gains control Exchange (‘NSE’) and the BSE Limited (‘BSE’), in until the date when the Company ceases to control ,QGLD 7KH UHJLVWHUHG RIͤFH RI 65/ LV VLWXDWHG DW the subsidiary. Prakash Nagar, Sankhol, Rohtak Road, Bahadurgarh  3URͤW RU ORVV DQG HDFK FRPSRQHQW RI RWKHU ̰ +DU\DQD ,QGLD&RPSDQ\LVWKHODUJHVW comprehensive income are attributed to the owners GI Steel Pipe Manufacturer and the second largest of the Company and to the non-controlling interests. in lighting products in India. The Corporate Total comprehensive income of subsidiaries is ,GHQWLͤFDWLRQ 1XPEHU &,1  RI WKH &RPSDQ\ LV attributed to the owners of the Company and to the /+53/&   non-controlling interests even if this results in the SRL is more than four decade old manufacturing QRQFRQWUROOLQJLQWHUHVWVKDYLQJDGHͤFLWEDODQFH conglomerate with business interest spanning Steel When necessary, adjustments are made to the Pipes and Strips, Lightings, LED street light and ͤQDQFLDO VWDWHPHQWV RI VXEVLGLDULHV WR EULQJ WKHLU other lighting product, Fans, electric Appliances, accounting policies into line with the Group’s 39& SLSHV HWF %HVLGHV HQMR\LQJ PDUNHW SUHVHQFH accounting policies. across the length and breadth of India, it also export All intragroup assets and liabilities, equity, income, products to more than 50 countries globally. expenses, and cash flows relating to transactions SRL together with its subsidiary is hereinafter refer between members of the Group are eliminated in full to as ‘the Group’. on consolidation. 2 BASIS OF PREPARATION OF CONSOLIDATED Consolidation procedure: FINANCIAL STATEMENTS AND USE OF ESTIMATES  7KHͤQDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ DQG LWV  %DVLVRISUHSDUDWLRQRIFRQVROLGDWHGͤQDQFLDO subsidiary company have been consolidated on statements a line-by-line basis by adding together the book 7KHVHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVDUHSUHSDUHG values of like items of assets, liabilities, income in accordance with the Indian Accounting Standards DQG H[SHQVHV DIWHU HOLPLQDWLQJ DOO VLJQLͤFDQW (Ind AS) under the historical cost convention on the intra-group balances, intra-group transactions and DFFUXDOEDVLVH[FHSWIRUFHUWDLQͤQDQFLDOLQVWUXPHQWV XQUHDOLVHGSURͤWVRQLQWUDJURXSWUDQVDFWLRQV which are measured at fair values. The Ind AS are The excess of cost to the Group of its investments prescribed under Section 133 of the Companies Act, in the subsidiaries over its share of equity of the 2013.Accounting policies have been consistently subsidiaries, at the dates on which the investments applied except where a newly-issued accounting in the subsidiaries were made, is recognised as standard is initially adopted or a revision to an ‘Goodwill’ being an asset in the consolidated existing accounting standard requires a change in the ͤQDQFLDO VWDWHPHQWV DQG LV WHVWHG IRU LPSDLUPHQW accounting policy hitherto in use. on annual basis. On the other hand, where the 2.2.1 Basis of consolidation share of equity in the subsidiaries as on the date  7KHFRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV UHODWHV WR of investment is in excess of cost of investments of Surya Roshni Limited (‘the Company’) and its wholly the Group, it is recognised as ‘Capital Reserve’ and owned subsidiary Surya Roshni LED Lighting Project shown under the head ‘Reserves & Surplus’, in the Limited ( incorporated on 21st January, 2019). The FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV 7KH ̴*RRGZLOO̵ Subsidiary operates in lighting business. Subsidiary / ‘Capital Reserve’ is determined separately for is entity that is controlled by the Company. Control each subsidiary and such amounts are not set off is achieved when the Company: between different entities.  ̽ +DVSRZHURYHUWKHLQYHVWHH  Non-controlling interest in the net assets of the  ̽ ,VH[SHFWHG RU KDV ULJKW WR YDULDEOH UHWXUQV consolidated subsidiaries consist of the amount from its involvement with the investee; of equity attributable to the non-controlling  ̽ +DVWKH DELOLW\ WR XVH LWV SRZHU WR DIIHFW WKH shareholders at the date on which investments in returns the subsidiaries were made and further movements Consolidation of a subsidiary begins when the in their share in the equity, subsequent to the dates Company obtains control over the subsidiary and RILQYHVWPHQWV1HWSURͤWORVVIRUWKH\HDURIWKH ceases when the Company loses control of the subsidiaries attributable to non-controlling interest

160 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

LV LGHQWLͤHG DQG DGMXVWHG DJDLQVW WKH SURͤW  ORVV Revision to accounting estimates are recognised after tax of the Group in order to arrive at the income in the period in which the estimates are revised and attributable to shareholders of the Company. future periods are affected. 2.2.2 Business combination 3 SIGNIFICANT ACCOUNTING POLICIES The Company accounts for its business combinations 3.1 Basis of Measurement under acquisition method of accounting. Acquisition  7KHVHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVKDYHEHHQ STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE UHODWHGFRVWVDUHUHFRJQLVHGLQWKHSURͤWDQGORVVDV prepared under the historical cost principle except LQFXUUHG 7KH DFTXLUHH̵V LGHQWLͤHG DVVHWV OLDELOLWLHV IRU FHUWDLQ ͤQDQFLDO DVVHWV DQG OLDELOLWLHV ZKLFK and contingent liabilities that meet the condition for have been measured at fair value: recognition are recognised at their fair value at the  7KHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVDUHSUHVHQWHG acquisition date. in Indian Rupees (INR), which is the Company’s Purchase consideration paid in excess of the fair value functional and presentation currency and all

of net assets acquired is recognised as goodwill. amounts are rounded to the nearest Crore and two FINANCIAL SECTION :KHUHWKHIDLUYDOXHRILGHQWLͤDEOHDVVHWVDQGOLDELOLWLHV decimals thereof, except as stated otherwise. exceed the cost of acquisition after reassessing the 3.2 Property, Plant and Equipment (PPE) fair value of the net assets and contingent liabilities, the excess is recognised as capital revenue. Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated The interest of non-controlling shares is initially impairment losses, if any. Cost comprises of the measured either at fair value or at the non-controlled SXUFKDVHSULFH QHWRI*67&(19$7GXW\FUHGLWV interests proportionate share of the acquiree’s wherever applicable) and all direct costs attributable LGHQWLͤDEOH QHW DVVHWV 7KH FKRLFH RI PHDVXUHPHQW to bringing the asset to its working condition for basis is made on acquisition-by-acquisition basis. intended use and includes the borrowing costs for Subsequent to acquisition, the carrying amount qualifying assets if the recognition criteria’s are of non-controlled interest is the amount of those met. All other repair and maintenance costs are interests at initial recognition plus the non-controlling UHFRJQLVHGLQWKHFRQVROLGDWHGVWDWHPHQWRISURͤW interests share of subsequent charges in equity of and loss as incurred. subsidiaries. An item of property, plant and equipment is de- Business combinations arising from transfer of recognised upon disposal or when no future interest in entities that are under common control HFRQRPLF EHQHͤWV DUH H[SHFWHG IURP LWV XVH RU are accounted at historical cost. The difference disposal. The gain or loss arising on the disposal between any consideration given and the aggregate or retirement of an item of property, plant and given and the aggregate historical carrying amounts equipment is determined as the difference between of the assets and liabilities of the acquired entity are the sales proceeds and the carrying amount of recorded in shareholders’ equity. the asset and is recognised in the consolidated 2.3 Statement of compliance VWDWHPHQWRISURͤWDQGORVVRQWKHGDWHRIGLVSRVDO  7KH*URXS̵VͤQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHG or retirement. in accordance with Indian Accounting Standards Capital work-in-progress includes cost of property, ̴,QG $6̵  QRWLͤHG XQGHU WKH &RPSDQLHV ,QGLDQ plant and equipment under installation as at the Accounting Standards) Rules, 2015 read with Section consolidated balance sheet date and the cost 133 of the Companies Act, 2013. of Property, Plant and Equipment not put to use 2.4 Use of estimates are disclosed under ‘Capital work-in-progress’.  7KH SUHSDUDWLRQ RI WKH FRQVROLGDWHG ͤQDQFLDO Advances paid towards the acquisition of statements in conformity with Ind AS requires the property, plant and equipment outstanding at each Management to make estimates, judgements and FRQVROLGDWHG EDODQFH VKHHW GDWH LV FODVVLͤHG DV assumptions. These estimate, judgements and capital advances under other non-current assets assumptions affect the application of accounting 3.3 Depreciation and Amortisation policies and the reported balances of assets and i Depreciation on the property, plant and liabilities, the disclosures of contingent assets and equipment is provided over the useful life of OLDELOLWLHV DW WKH GDWH RI WKH FRQVROLGDWHG ͤQDQFLDO DVVHWVZKLFKLVFRLQFLGHZLWKWKHOLIHVSHFLͤHG statements and reported amounts of revenues and in Schedule II to the Companies Act, 2013. The expenses during the period. Estimates and under range of useful lives of the Property, Plant and lying assumptions are reviewed on an ongoing basis. Equipment are as follows:

Notes To Consolidated Financial Statements 161 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

Property, plant and equipment Useful life in amount of the asset. An impairment loss is reversed Years LQ WKH FRQVROLGDWHG VWDWHPHQW RI SURͤW DQG ORVV LI Plant and equipments 08 – 15 there has been a change in the estimates used to Buildings 05-60 determine the recoverable amount. The carrying 2IͤFHHTXLSPHQW V 05 amount of the asset is increased to its revised 9HKLFOHV 08 recoverable amount, provided that this amount does )XUQLWXUHDQGͤ[WXUHV 10 not exceed the carrying amount that would have been Computers 03 –06 determined (net of any accumulated amortisation However, in case of the following category of or depreciation) had no impairment loss been plant and equipments, the depreciation has been recognised for the asset in prior years. A reversal provided, based on the technical evaluation of of impairment loss is recognised immediately in the remaining useful life as under :- FRQVROLGDWHGVWDWHPHQWRISURͤWDQGORVV Plant and Equipments - Pipe 25 years 3.5 Cash and cash equivalents Mills cold rolling and 3 LPE Plant of Steel Division Cash and cash equivalents includes cash in hand and Cheques / drafts in hand, balances with banks, The useful lives of assets as mentioned above deposits held at call with banks, other short-term is on their single shift basis, if an asset is used highly liquid investments with original maturities for any time during the year for double shift, the of three months or less that are readily convertible depreciation will increase by 50% for that period to a known amount of cash and are subject to and in case of triple shift the depreciation will DQ LQVLJQLͤFDQW ULVN RI FKDQJHV LQ YDOXH DQG DUH increase by 100% for that period. held for the purpose of meeting short-term cash ii Property, plant and equipment (PPE) which commitments. The consolidated cash flow statement are added/ disposed- of during the year, has been prepared under the indirect method as depreciation is provided on pro-rata basis from set out in Indian Accounting Standard (IND AS ) 7 (up- to) the date on which the PPE is available statement of cash flows. for use (disposed-off). 3.6 Inventories iii The residual values and useful lives of PPE are Inventories are carried in the balance sheet as follows: UHYLHZHG LQ HYHU\ ͤQDQFLDO \HDU FRQVLGHULQJ Raw material At lower of cost or net realisable the physical condition, benchmarking analysis value or indicators for review of residual value and Work-in Progress At lower of cost or net realisable value useful life of the respective assets and the Finished Goods / At lower of cost or net realisable same is adjusted prospectively. Lease hold Stock in trade value land is amortised over the period of lease. Stores, spares At lower of cost or net realisable and consumable value iv Free-hold land are not subject to amortisation. The cost of inventories comprises of cost of purchase,  ,PSDLUPHQWRI33(DQGRWKHUQRQͤQDQFLDODVVHWV cost of conversion and other related costs incurred Property, plant and equipment and other non- in bringing the inventories to their respective present ͤQDQFLDO DVVHWV DUH HYDOXDWHG IRU UHFRYHUDELOLW\ location and condition. Net realisable value is the whenever events or changes in circumstances estimated selling price in the ordinary course of indicate that their carrying amounts may not be business, less estimated costs of completion and the recoverable. For the purpose of impairment testing, estimated costs necessary to make the sale. the recoverable amount (i.e. the higher of the fair  (PSOR\HHEHQHͤWV value less cost to sell and the value-in-use) is Expenses and liabilities in respect of employee determined on an individual asset basis unless EHQHͤWVDUHUHFRUGHGLQDFFRUGDQFHZLWK,QG$6 the asset does not generate cash flows that are ̰(PSOR\HH%HQHͤWV largely independent of those from other assets. In such cases, the recoverable amount is determined D  'HͤQHGFRQWULEXWLRQSODQ for the Cash Generating Unit (CGU) to which the i Provident Fund: Contribution to the provident asset belongs. If such assets are considered to fund with the government at pre-determined be impaired, the impairment to be recognised in UDWHV LV D GHͤQHG FRQWULEXWLRQ VFKHPH DQG LV WKH FRQVROLGDWHG VWDWHPHQW RI SURͤW DQG ORVV LV FKDUJHG WR WKH VWDWHPHQW RI 3URͤW DQG /RVV measured by the amount by which the carrying value when employees have rendered services of the assets exceeds the estimated recoverable HQWLWOLQJWKHPWRVXFKEHQHͤW

162 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

ii National pension scheme : Contribution to b) Transactions and balances national pension scheme with the at pre- Transactions in currencies other than the entity’s GHWHUPLQHG UDWHV LV D GHͤQHG FRQWULEXWLRQ functional currency (foreign currencies) are scheme and is charged to the consolidated recognised at the rates of exchange prevailing at the VWDWHPHQW RI SURͤW DQG ORVV ZKHQ HPSOR\HHV dates of the transactions. At the end of each reporting have rendered services entitling them to such period, monetary items denominated in foreign STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE EHQHͤW currencies are translated at the rates prevailing on the E  'HͤQHGEHQHͤWSODQ consolidated balance sheet date and exchange gain Gratuity:  7KH *URXS SURYLGHV IRU JUDWXLW\ D GHͤQHG and losses arising on settlement and restatement are EHQHͤW UHWLUHPHQW SODQ ̴WKH *UDWXLW\ 3ODQ̵  FRYHULQJ UHFRJQLVHG LQ FRQVROLGDWHG VWDWHPHQW RI SURͤW DQG eligible employees. The Gratuity Plan provides a lump- loss. Non-monetary items are measured in terms of sum payment to vested employees at retirement, historical cost in foreign currencies and are therefore death, or termination of employment, of an amount not retranslated. FINANCIAL SECTION based on the respective employee’s salary and the 3.9 Financial instruments tenure of employment with the respective Company. Initial recognition: 7KH *URXS UHFRJQLVHV ͤQDQFLDO Liabilities with regard to the Gratuity Plan are DVVHWV DQG ͤQDQFLDO OLDELOLWLHV ZKHQ LW EHFRPHV D determined by actuarial valuation, performed by an party to the contractual provisions of the instrument. independent actuary, at each balance sheet date $OO ͤQDQFLDO DVVHWV DQG OLDELOLWLHV DUH UHFRJQLVHG DW using the projected unit credit method. fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of  7KH*URXSUHFRJQL]HVWKHQHWREOLJDWLRQRIDGHͤQHG ͤQDQFLDO DVVHWV DQG ͤQDQFLDO OLDELOLWLHV WKDW DUH QRW EHQHͤWSODQLQLWVEDODQFHVKHHWDVDQDVVHWRUOLDELOLW\ DW IDLU YDOXH WKURXJK SURͤW RU ORVV DUH DGGHG WR RU Gains and losses through re-measurements of the deducted from the fair value on initial recognition. QHW GHͤQHG EHQHͤW OLDELOLW\ DVVHW  DUH UHFRJQLVHG in other comprehensive income. The actual return of Subsequent measurement: the portfolio of plan assets, in excess of the yields i Financial assets carried at amortised cost: A computed by applying the discount rate used to ͤQDQFLDO DVVHW LV VXEVHTXHQWO\ PHDVXUHG DW PHDVXUHWKHGHͤQHGEHQHͤWREOLJDWLRQVLVUHFRJQLVHG amortised cost if it is held within a business in Other Comprehensive Income. The effect of any model whose objective is to hold the asset in SODQDPHQGPHQWVDUHUHFRJQLVHGLQQHWSURͤWVLQWKH order to collect contractual cash flows and the 6WDWHPHQWRI3URͤWDQG/RVV FRQWUDFWXDO WHUPV RI WKH ͤQDQFLDO DVVHW JLYH c) /RQJ WHUP HPSOR\HH EHQHͤWV Provisions for ULVH RQ VSHFLͤHG GDWHV WR FDVK IORZV WKDW DUH RWKHU ORQJ WHUP HPSOR\HH EHQHͤWVFRPSHQVDWHG solely payments of principal and interest on the DEVHQFHV D GHͤQHG EHQHͤW VFKHPH LV PDGH RQ principal amount outstanding. the basis of actuarial valuation at the end of each ii Financial assets carried at fair value through ͤQDQFLDO \HDU DQG DUH FKDUJHG WR WKH VWDWHPHQW other comprehensive income: $ ͤQDQFLDO DVVHW RI SURͤW DQG ORVV $OO DFWXDULDO JDLQV RU ORVVHV is subsequently measured at fair value through are recognised immediately in the consolidated other comprehensive income if it is held within a VWDWHPHQWRISURͤWDQGORVV business model whose objective is achieved by both collecting contractual cash flows and selling d) 2WKHU6KRUWWHUPHPSOR\HHEHQHͤWV All employee EHQHͤWV SD\DEOH ZKROO\ ZLWKLQ WZHOYH PRQWKV ͤQDQFLDODVVHWVDQGWKHFRQWUDFWXDOWHUPVRIWKH UHQGHULQJ VHUYLFHV DUH FODVVLͤHG DV VKRUW WHUP ͤQDQFLDODVVHWJLYHULVHRQVSHFLͤHGGDWHVWRFDVK flows that are solely payments of principal and HPSOR\HHEHQHͤWV%HQHͤWVVXFKDVVDODULHVZDJHV short-term compensated absences, performance interest on the principal amount outstanding. incentives etc. and the expected cost of bonus, ex-  LLL )LQDQFLDODVVHWVDWIDLUYDOXHWKURXJKSURͤWRU gratia are recognised during the period in which the loss:$ͤQDQFLDODVVHWZKLFKLVQRWFODVVLͤHGLQ employee renders related service. any of (i) & (ii) above categories are subsequently 3.8 Foreign currency reinstatement and translation IDLUYDOXHGWKURXJKSURͤWRUORVV a) Functional and presentation currency iv Financial Liabilities: Financial liabilities are  7KH FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV KDYH EHHQ subsequently carried at amortised cost using presented in Indian Rupees (`), which is the Group’s the effective interest method. For trade and other functional and presentation currency. payables maturing within one year from the consolidated balance sheet date, the carrying

Notes To Consolidated Financial Statements 163 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

amounts approximate fair value due to the short ii Provision for current income taxes and advance maturity of these instruments. taxes paid are presented in the balance sheet after offsetting them on an assessment year De-recognition basis.  7KH*URXS GHUHFRJQLVHV RI ͤQDQFLDO DVVHWV ZKHQ WKH FRQWUDFWXDOULJKWVWRUHFHLYHFDVKIORZVIURPWKHͤQDQFLDO Deferred Tax DVVHW H[SLUH RU WUDQVIHU WKH ͤQDQFLDO DVVHW DQG WUDQVIHU Deferred tax is recognised on differences between TXDOLͤHVIRUGHUHFRJQLWLRQXQGHU,1'$6 the carrying amounts of assets and liabilities in the consolidated Balance sheet and the corresponding  $ͤQDQFLDOOLDELOLW\LVGHUHFRJQLVHGZKHQWKHREOLJDWLRQ under the liability is discharged or cancelled or WD[ EDVHV XVHG LQ WKH FRPSXWDWLRQ RI WD[DEOH SURͤW expired. The difference between the carrying amount and are accounted for using the Balance Sheet RI D ͤQDQFLDO OLDELOLW\ WKDW KDV EHHQ H[WLQJXLVKHG LV approach for all taxable temporary differences to the UHFRJQLVHGLQSURͤWRUORVVDVRWKHULQFRPH H[WHQW WKDW LW LV SUREDEOH WKDW IXWXUH WD[DEOH SURͤWV will be available. Deferred tax assets and liabilities 2IIVHWWLQJRIͤQDQFLDOLQVWUXPHQWV are measured at the applicable tax rates and tax laws  )LQDQFLDODVVHWV DQG ͤQDQFLDO OLDELOLWLHV DUH RIIVHW those are enacted or substantively enacted. Deferred and the net amount is reported in the consolidated tax assets and deferred tax liabilities are set-off, balance sheet if there is a currently enforceable legal and presented on net basis. The carrying amount of right to offset the recognised amounts and there is an deferred tax is reviewed at each balance sheet date. intention to settle on a net basis, to realise the assets The measurement of deferred tax liabilities and assets and settle the liabilities simultaneously. reflects the tax consequences that would follow from 'HULYDWLYHͤQDQFLDOLQVWUXPHQWV the manner in which the Company expects, at the end  7KH*URXSXVHVGHULYDWLYHͤQDQFLDOLQVWUXPHQWVVXFK of the reporting period, to recover or settle the carrying as forward contracts to hedge its foreign currency amount of its assets and liabilities. exposure. The recognizing of the resulting gain or 3.13 Revenue recognition and other income loss depends on whether the derivative is designated The Group is in the business of sale of Steel Pipes as a hedging instrument, and if so, on the nature of and Strips, lightings, LED and conventional lighting the item being hedged. Any gains or losses arising JRRGVIDQVDSSOLDQFHV39&SLSHVDQGͤWWLQJVHWF from changes in the fair value of derivatives are taken The Group also provide extended warranties for its GLUHFWO\WRSURͤWRUORVV LED street lighting. 3.11 Borrowing costs The Group has adopted Ind AS 115 “ Revenue from a) Borrowing costs that are attributable to the Contracts with Customers” from reporting period acquisition, construction, or production of a beginning on or after 01st April, 2018 and has qualifying asset are capitalised as a part of the replaced existing Ind AS related thereto. Under the cost of such asset till such time the asset is PRGLͤHG UHWURVSHFWLYH DSSURDFK WKHUH ZHUH QR ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a VLJQLͤFDQWDGMXVWPHQWVUHTXLUHGWREHPDGHWRWKH substantial period of time to get ready for its retained earnings as at 01st April, 2018 intended use or sale. Revenue from contracts with customers is b) All other borrowing costs are recognised as recognised when control of the promised goods expense in the period in which they are incurred. or services are transferred to the customer at an amount that reflects the consideration to which the 3.12 Taxation Group expects to be entitled in exchange for those Income tax expense represents the sum of current goods or services. tax and deferred tax. Tax is recognised in the a) Sale of Product / Goods FRQVROLGDWHGVWDWHPHQWRISURͤWDQGORVVH[FHSWWR the extent that it relates to items recognised directly Revenue from sale of Product/Goods is in equity or other comprehensive income. recognised at the point in time when control of Current Tax the asset is transferred to the customer, generally on delivery of the Product/Goods and there is no i Current tax provision is computed on Income calculated after considering allowances and uncertainty in receiving the same and there is exemptions under the provisions of the applicable reasonable assurance that the Group will comply Income Tax Laws. with the conditions attached to them.

164 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

The Group considers whether there are other 3.14 Government grants / Assistance promises in the contract that are separate Government grants/Assistance recognised where performance obligations to which a portion of there is reasonable assurance that the same will the transaction price needs to be allocated (e.g., be received and the eligibility criteria is met out. warranties). In recognition of revenue from sale Government grants/Assistance are recognised of Goods, the Group also considers the effects LQ SURͤW DQG ORVV DFFRXQW RQ D V\VWHPDWLF EDVLV STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE of volume, rebates, schemes, discount and over the period in which the Group, recognises as ͤQDQFLQJFRPSRQHQWV expenses the related cost for which the grants are Extended warranty: The extended warranties intended to compensate. provided to the customers are considered as 3.15 Dividend Distribution the separate contract, adjusted and accounted Annual dividend distribution to the shareholders accordingly. is recognised as a liability in the period in which Volume rebates and schemes discounts: The FINANCIAL SECTION the dividends are approved by the shareholders. Group provides volume rebates and schemes Any interim dividend paid is recognised on discounts to its customers based on quantity approval by Board of Directors. Dividend payable of products purchased by them during the and corresponding tax on dividend distribution is period. To estimate for the expected future recognised directly in equity. outgo for revenue recognition, the Group applies the most likely amount method for 3.16 Fair Value measurement contracts with a single-volume threshold and  7KH*URXS PHDVXUHV ͤQDQFLDO LQVWUXPHQWV DW IDLU the expected value method for contracts with value at each balance sheet date. more than one volume threshold. The selected Fair value is the price that would be received to sell method that best predicts the amount of an asset or paid to transfer a liability in an orderly variable consideration is primarily driven by the transaction between market participants at the number of volume thresholds contained in the measurement date. The fair value measurement contract. is based on the presumption that the transaction Financing component: In case of extended trade to sell the asset or transfer the liability takes place credit agreed with the customers containing either: VLJQLͤFDQWͤQDQFLQJFRPSRQHQWWKHWUDQVDFWLRQ In the principal market for the asset or liability, price for such contract are discounted, using the or effective interest rate that would be considered In the absence of a principal market, in the most VHSDUDWH ͤQDQFLQJ WUDQVDFWLRQ DW WUDQVDFWLRQ advantageous market for the asset or liability inception, to take into consideration the VLJQLͤFDQWͤQDQFLQJFRPSRQHQW The principal or the most advantageous market must be accessible by the Group. The fair value of an asset b) Export incentives: or a liability is measured using the assumptions that   ([SRUWEHQHͤWVDUHDFFRXQWHGIRULQWKH\HDURI market participants would use when pricing the asset exports based on eligibility and when there is no or liability, assuming that market participants act in uncertainty in receiving the same and there is their economic best interest. reasonable assurance that the Group will comply  $IDLUYDOXHPHDVXUHPHQWRIDQRQͤQDQFLDODVVHWWDNHV with the conditions attached to them. into account a market participant’s ability to generate b) Rendering of Service HFRQRPLFEHQHͤWVE\XVLQJWKHDVVHWLQLWVKLJKHVWDQG Revenue from Services is recognised as per best use or by selling it to another market participant that terms of the contract with customers based on would use the asset in its highest and best use. stage of completion when the outcome of the The Group uses valuation techniques that are transaction involving rendering of services can appropriate in the circumstances and for which be estimated reliably. VXIͤFLHQW GDWD DUH DYDLODEOH WR PHDVXUH IDLU YDOXH c) Other Income maximising the use of relevant observable inputs and Interest income is recognised on a time minimising the use of unobservable inputs. proportion basis taking into account the All assets and liabilities for which fair value is amount outstanding and the rate applicable. PHDVXUHGRUGLVFORVHGLQWKHFRQVROLGDWHGͤQDQFLDO

Notes To Consolidated Financial Statements 165 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

statements are categorised within the fair value will be required to settle the obligation and a hierarchy, described as follows, based on the reliable estimate can be made of the amount ORZHVWOHYHOLQSXWWKDWLVVLJQLͤFDQWWRWKHIDLUYDOXH of the obligation. If the effect of the time value measurement as a whole: of money is material, provisions are discounted Level 1: Quoted prices in active markets for identical using equivalent period government securities assets and liabilities interest rate. Provisions are reviewed at each consolidated balance sheet date and are Level 2: Directly or indirectly observable market inputs, adjusted to reflect the current best estimate. other than Level 1 inputs. This includes the assets and liabilities carried at forward contract rates / prevailing b) Contingencies exchange rate at year end and assets carried at present Contingent liabilities are disclosed when there is value using appropriate discounting rate a possible obligation arising from past events, Level 3: Inputs which are not based on observable WKH H[LVWHQFH RI ZKLFK ZLOO EH FRQͤUPHG RQO\ market data. by the occurrence or non-occurrence of one or more uncertain future events not wholly within For assets and liabilities that are recognised in the the control of the Group or a present obligation FRQVROLGDWHG ͤQDQFLDO VWDWHPHQWV RQ D UHFXUULQJ that arises from past events where it is either basis, the respective companies determines whether not probable that an outflow of resources will transfers have occurred between levels in the be required to settle or a reliable estimate of hierarchy by re-assessing categorisation (based on the amount cannot be made. Information on WKH ORZHVW OHYHO LQSXW WKDW LV VLJQLͤFDQW WR WKH IDLU contingent liability is disclosed in the Notes to value measurement as a whole) at the end of each the Financial Statements. reporting period. Contingent assets are not recognised. However, For the purpose of fair value disclosures, the Company when the realisation of income is virtually has determined classes of assets & liabilities on the certain, it is recognised as an asset. basis of the nature, characteristics and the risks of the asset or liability and the level of the fair value c) Warranty Provisions The estimated liability for hierarchy as explained above. product warranties is recorded when products are sold. These estimates are established using 3.17 Earnings per share historical information on the nature, frequency Basic earnings per equity share is computed by dividing and average cost of warranty claims and Group’s WKH QHW SURͤW DWWULEXWDEOH WR WKH HTXLW\ KROGHUV RI WKH Management estimates regarding possible Company by the weighted average number of equity future incidence based on corrective actions on shares outstanding during the year. product failures. The timing of outflows will vary Diluted earnings per equity share is computed by as and when warranty claim will arise. GLYLGLQJWKHQHWSURͤWDWWULEXWDEOHWRWKHHTXLW\KROGHUVRI As per the terms of the contracts, the the Company by the weighted average number of equity Company provides post-contract services / shares considered for deriving basic earnings per equity warranty support to some of its customers. share and also the weighted average number of equity The Company accounts for the post-contract shares that could have been issued upon conversion of support / provision for warranty on the basis all dilutive potential equity shares. of the information available with the Group’s 3.18 Provisions Management duly taking into account the a) Provisions current and past technical estimates.   3URYLVLRQV H[FOXGLQJ HPSOR\HH EHQHͤWV  DUH 3.19 Research and development costs recognised when the Group has a present Research costs are expensed as incurred. obligation (legal or constructive) as a result of Development expenditures on an individual project a past event and it is probable that an outflow are recognised as an intangible asset when the Group RI UHVRXUFHV HPERG\LQJ HFRQRPLF EHQHͤWV can demonstrate:

166 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

a) The technical feasibility of completing the comparatives for the year ended March 31, 2019 will intangible asset so that the asset will be available not be retrospectively adjusted. for use or sale 4 CRITICAL ACCOUNTING ESTIMATES,ASSUMPTIONS b) Its intention to complete and its ability and AND JUDGEMENTS intention to use or sell the asset In the process of applying the Group’s accounting REPORTS STATUTORY OVERVIEW CORPORATE c) How the asset will generate future economic policies, management has made the following EHQHͤWV estimates, assumptions and judgements, which KDYHVLJQLͤFDQWHIIHFWRQWKHDPRXQWVUHFRJQLVHG d) The availability of resources to complete the LQWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV asset a) Property, plant and equipment - Useful lives of e) The ability to measure reliably the expenditure assets during development FINANCIAL SECTION The Group reviews the useful life of assets at the Following initial recognition of the development end of each reporting period. This reassessment expenditure as an asset, the asset is carried at cost may result in change in depreciation expenses in less any accumulated amortisation and accumulated future periods. impairment losses. Amortisation of the asset begins b) Warranties when development is complete and the asset is The Group generally offers Warranties for its available for use. It is amortised over the period of consumer products and the liability towards H[SHFWHG IXWXUH EHQHͤW $PRUWLVDWLRQ H[SHQVH LV warranty-related costs are recognised in the year UHFRJQLVHG LQ WKH FRQVROLGDWHG VWDWHPHQW RI SURͤW of sales or service provided to the customers. and loss unless such expenditure forms part of Management ascertain and measure the liability for carrying value of another asset. warranty claims based on historical experience and 3.20 Recent accounting pronouncements trend. The assumptions made in relation to current year are consistent of those are in prior years. ,QG$6  /HDVHV ZDV QRWLͤHG LQ 0DUFK  DQG c) Provision it replaces Ind AS 17 Leases. Ind AS 116 is effective A provision is recognised when the Group has a for annual periods beginning on or after 1st April, present obligation as a result of past events and 2019. It sets out the principles for the recognition, it is probable that an outflow of resources will be measurement, presentation and disclosure of required to settle the obligation in respect of which leases and requires lessees to account for all leases a reliable estimate can be made. under a single on-balance sheet model similar to d) Contingent Liabilities and Contingent Assets WKH DFFRXQWLQJ IRU ͤQDQFH OHDVHV XQGHU ,QG $6  Contingent liabilities are disclosed when there is Lessor accounting under Ind AS 116 is substantially a possible obligation arising from past events, the unchanged from today’s accounting under Ind AS 17. H[LVWHQFHRIZKLFKZLOOEHFRQͤUPHGRQO\E\RFFXUUHQFH or non-occurrence of one or more uncertain future Ind AS 116 requires lessees and lessors to make more events not wholly within the control of the Group or a extensive disclosures than under Ind AS 17. present obligation that arises from past events where it  *URXSLVSURSRVLQJWRXVHWKH̴0RGLͤHG5HWURVSHFWLYH is either not probable that an outflow of resources will Approach’ for transition to Ind As 116, and take the be required to settle or a reliable estimate of the amount cumulative adjustment to retained earnings, on the cannot be made. Contingent liabilities are disclosed in the consolidated notes. Contingent assets are not date of initial application ( April 1, 2019). Accordingly, UHFRJQLVHGLQWKHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV

Notes To Consolidated Financial Statements 167 168 5 PROPERTY, PLANT AND EQUIPMENT 2019(Contd.) FOR THEYEARENDED31stMARCH, NOTES TO CONSOLIDATED STATEMENTS FINANCIAL

ANNUAL REPORT (` in crore) Particulars Land- Land- Plant and Furniture and 2IͤFH Capital work Buildings Vehicles Computers Total Freehold Leasehold Equipment Fixtures Equipment's in progress GROSS CARRYING VALUE As at March 31, 2018 19.50 10.97 202.12 1,073.00 5.86 6.57 2.81 7.26 1,328.09 21.91

2018-19 Additions 1.53 - 10.09 89.65 0.50 2.77  0.56   Deletion / adjustments - - - 0.39 - 0.37   2.15 72.68 As at March 31, 2019 21.03 10.97 212.21 1,162.26 6.36 8.97 3.00 6.88 1,431.68 24.57 DEPRECIATION As at March 31, 2018 -  21.70 223.09 2.23 2.30 1.71  256.17 - Depreciation for the year - 0.35 7.93 76.98 0.78 0.86 0.35 1.26 88.51 - Deletion / adjustments - - - 0.18 - 0.21 0.39 0.80 1.58 - As at March 31, 2019 - 1.39 29.63 299.89 3.01 2.95 1.67 4.56 343.10 - Net carrying value As at March 31, 2019 21.03 9.58 182.58 862.37 3.35 6.02 1.33 2.32 1,088.58 24.57 Explanatory Notes: i The above property plant and equipment are under charge as security against borrowing see note no.17 & 21 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

6 OTHER FINANCIAL ASSETS AT AMORTISED COST (NON CURRENT) (` in crore) As at 31st March, 2019 Unsecured, considered good Receivables 22.38 REPORTS STATUTORY OVERVIEW CORPORATE Unbilled revenue 13.98 Security deposits 9.70 46.06 7 OTHER NON CURRENT ASSETS (` in crore) As at FINANCIAL SECTION 31st March, 2019 Capital advances 7.25 7.25 8 INVENTORIES (CURRENT) (` in crore) As at 31st March, 2019 Raw materials  Work-in-progress  Finished goods 321.80 Stores, spares and consumables 25.37 845.53 The mode of valuation has been stated in note no.3.6 Inventories are hypothecated as security against borrowings see note no.17 & 21

9 TRADE RECEIVABLES (CURRENT) (` in crore) As at 31st March, 2019 Trade receivables considered good-secured - Trade receivables considered good-unsecured 835.32 7UDGHUHFHLYDEOHVZKLFKKDYHVLJQLͤFDQWLQFUHDVHLQ&UHGLW5LVN - Trade receivables-credit impaired 11.69 Less : Allowance for doubtful debts 11.69 Net Trade receivables-credit impaired - 835.32

Notes To Consolidated Financial Statements 169 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

10 CASH AND CASH EQUIVALENTS (` in crore) As at 31st March, 2019 a. Balance with banks In Current Accounts 0.25 b. Cheques, drafts on hand 1.00 c. Cash on hand 0.39 Cash and cash equivalents as per statement of cash flow 1.64 11 BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS (` in crore) As at 31st March, 2019 Balance with banks - Unpaid dividend account (Earmarked against the corresponding provision refer note no.23)  0.43

12 OTHER FINANCIAL ASSETS (CURRENT) (` in crore) As at 31st March, 2019 Unbilled revenue  Other Recoverables  38.23

13 CURRENT TAX ASSETS (NET) (` in crore) As at 31st March, 2019 Current Tax asset (net) 0.27 0.27

14 OTHER CURRENT ASSETS (` in crore) As at 31st March, 2019 Considered good, unless otherwise stated MAT Receivable 26.83 Recoverable from government authorities 80.60 Balances with statutory authorities 22.60 Prepaid expenses 2.15 Advances to Supplier 8.61 140.79

15 SHARE CAPITAL (` in crore) As at 31st March, 2019 I Equity Share Capital Authorised 26,13,00,000 (previous year 26,13,00,000) Equity Shares of ` 10/- each 261.30 with voting rights Issued, subscribed and fully paid up Equity share capital  SUHYLRXV\HDU (TXLW\6KDUHVRI` 10/- each  with voting rights 54.41

170 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

(` in crore) As at 31st March, 2019 Movement of Equity Shares Balance at the beginning of the reporting period 

Issued during the year - REPORTS STATUTORY OVERVIEW CORPORATE Balance at the end of the reporting period 5,44,08,974

(` in crore) As at 31st March, 2019 II Preference share capital Authorised FINANCIAL SECTION 6,20,000 (previous year 6,20,000) Preference shares of ` 100/- each 6.20 (There are no issued, subscribed and fully paid up preference share capital)

Terms / rights attached to equity shares SRL has one class of equity shares having at par value of ` 10 per share. Each shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of SRL after distribution of all preferential amounts, in proportion to their shareholding. Details of shares held by each shareholder holding more than 5% shares: As at Names 31st March, 2019 Number of % holding in shares held that class of shares Diwakar Marketing Private Limited 56,37,500 10.36 Cubitex Marketing Private Limited  8.93 Shreyansh Mercantile Private Limited 31,78,000  Sahaj Tie-Up Private Limited 31,25,087 

16 OTHER EQUITY (` in crore) As at 31st March, 2019 a. Capital redemption reserve 3.00 b. Capital Reserve  c. Securities premium  d. Forfeiture reserve 17.63 e. General reserve  f. Retained earnings 736.90 g. Other comprehensive income   Balance at the end of the Financial year 1,097.45 Notes : For movements in reserves refer statement of change in equity Nature and purpose of reserves a. Capital Redemption Reserve Capital Redemption Reserve was created on redemption of preference share capital. SRL may issue fully paid-up bonus share to it’s members out of the capital redemption reserve. b. Capital Reserve Capital reserve has been created on Business Combination on appointed date i.e.1st April 2016 Pursuant to the Scheme of Arrangement amongst SRL and its associate e-Surya Global Steel Tubes Limited as per order of NCLT dated 11th December, 2017.

Notes To Consolidated Financial Statements 171 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

c. Securities premium Securities premium is used to record the premium on issue of shares. The premium should be is utilised in accordance with the provisions of the Companies Act. d. Forfeiture reserve Forfeiture Reserve represents the forfeiture of amount of consideration received on allotment of warrants of the cases where option to take equity shares were not exercised within the prescribed time in accordance with Chapter 9,,RI6(%, ,VVXHRI&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV e. General reserve   7KHJHQHUDOUHVHUYHLVFUHDWHGWLPHWRWLPHWRWUDQVIHUSURͤWVIURPUHWDLQHGHDUQLQJVIRUDSSURSULDWLRQSXUSRVHV As the general reserve is created by transfer from one component of equity to another equity, hence items included LQJHQHUDOUHVHUYHZLOOQRWEHUHFODVVLͤHGVXEVHTXHQWO\WRSURͤWDQGORVV f. Dividend The Dividend of `FURUHVIRUWKH

A Term Loans of `FURUHDUHVHFXUHGE\ZD\RIͤUVWSDULSDVVXFKDUJHRQDOOͤ[HG$VVHWVLQFOXGLQJHTXLWDEOH mortgage of Land and Building and further secured by way of second pari-passu charge on Group’s entire Current Assets both present and future and personal guarantee of the Chairman of the Group. a Rupee Term Loans from banks aggregating ` FURUHDUHSD\DEOHLQ PD[LPXP TXDUWHUO\LQVWDOOPHQWVZLWK last repayment date 30th September, 2025, carrying floating interest rate linked with MCLR of respective banks ranging from MCLR + 5 bps spread with periodical interest reset. b Foreign Currency Term Loan from banks aggregating `  FURUH DUH SD\DEOH LQ  PD[LPXP  TXDUWHUO\ installments, with last repayment date 30th September, 2025, carrying floating interest rate ranging from LIBOR + maximum 175 to 200 bps spread with periodical interest reset.   F )RUHLJQ&XUUHQF\7HUP/RDQIURPͤQDQFLDOLQVWLWXWLRQDJJUHJDWLQJ` 56.62 crore are payable in 25 (maximum) quarterly installments, with last repayment date 1st October, 2026, carrying floating interest rate LIBOR + maximum 200 bps spread with periodical interest reset. B Rupee Term Loans from bank of ` FURUHDUHVHFXUHGE\ZD\RIͤUVWSDULSDVVXFKDUJHRQDOOͤ[HG$VVHWVLQFOXGLQJ equitable mortgage of Land and Building and further secured by way of second pari-passu charge on Group’s entire Current Assets both present and future. Which is payable in 32 quarterly installments, with last repayment date 31st May, 2027, carrying floating interest rate linked with MCLR of respective banks MCLR + 20 bps spread with periodical interest reset.

172 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

18 OTHERS FINANCIAL LIABILITIES (NON CURRENT) (` in crore) As at 31st March, 2019 Security deposits  10.48 REPORTS STATUTORY OVERVIEW CORPORATE

19 PROVISION (NON CURRENT) (` in crore) As at 31st March, 2019

3URYLVLRQIRUHPSOR\HHEHQHͤWV FINANCIAL SECTION *UDWXLW\ UHIHUQRWH  &RPSHQVDWHGDEVHQFHV UHIHUQRWH 10.67 50.68

20 DEFERRED TAX LIABILITIES (` in crore) As at 31st Recognised Recognised As at 31st March, 2018 in P & L in OCI March, 2019 Deferred tax liabilities / assets are attributable to the following items; Deferred tax liabilities Difference between books depreciation and tax depreciation 103.29 1.03 -  Sub- (a) 103.29 1.03 - 104.32 Deferred tax assets 'LVDOORZHGXQGHUVHFWLRQ%RIWKH,QFRPHWD[$FWRQSD\PHQW 17.33 1.30 1.69 20.32 basis Allowance for doubtful debts  1.61  Others - 0.03 - 0.03 Sub- (b) 19.78 2.94 1.69 24.41 Net deferred tax liability (a-b) 83.51 (1.91) (1.69) 79.91

21 BORROWINGS (CURRENT) (` in crore) As at 31st March, 2019 Secured Loans repayable on demand From banks Rupee loans 796.67 796.67 Working Capital Loans of ` 796.67 crore are secured against current assets both present and future and further secured by way of second charge on all Fixed Assets including equitable mortgage of Land and Building and personal guarantee of the Chairman of the Group. The rupee loans linked with MCLR of respective banks ranging from MCLR to 90 bps spread over MCLR.

Notes To Consolidated Financial Statements 173 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

22 TRADE PAYABLES (` in crore) As at 31st March, 2019 outstanding dues of micro enterprises and small enterprises  outstanding dues other than micro enterprises and small enterprises 326.61 350.01 I The details of amounts outstanding to Micro, Small and Medium Enterprises based on available information with the Group as under: I The Principal amount and the interest due thereon remaining unpaid to any supplier. Principal Amount : 36.59 Interest : Nil ii The amount of interest paid by the Group along with the amounts of the payment made to the supplier beyond the appointed day for the year ending. Nil iii The amount of interest due and payable for the period of delay in making payment (beyond the appointed day during the year) Nil iv The amount of interest accrued and remaining unpaid for the year ending. Nil v The amount of further interest remaining due and payable for the earlier years. Nil  7KH,QIRUPDWLRQKDVEHHQJLYHQLQUHVSHFWRIVXFKVXSSOLHUVWRWKHH[WDQWWKH\FRXOGEHLGHQWLͤHGDV̸0LFURDQG6PDOO̹ enterprises on the basis of information submitted to the Group.

23 OTHER FINANCIAL LIABILITIES (CURRENT) (` in crore) As at 31st March, 2019 Current maturities of long-term borrowings (refer note 17 ) 60.01 Interest accrued but not due on borrowings  Unpaid dividends* (refer note 11 )  Forward Contract payable 0.67 Payable to employees 33.93 Expenses Payable 61.60 159.09 * There are no amounts due and outstanding to be credited to the Investor Education & Protection Fund as at 31st March, 2019.

24 OTHER LIABILITIES (CURRENT) (` in crore) As at 31st March, 2019 Advances from customers 28.83 Statutory dues payables 12.36 41.19

174 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

25 PROVISIONS (CURRENT) (` in crore) As at 31st March, 2019 3URYLVLRQIRUHPSOR\HHEHQHͤWV STATUTORY REPORTS REPORTS STATUTORY OVERVIEW CORPORATE *UDWXLW\ UHIHUQRWH 5.55 &RPSHQVDWHGDEVHQFHV UHIHUQRWH  7.96 Other payables :DUUDQW\SD\DEOH UHIHUQRWH  44.41

52.37 FINANCIAL SECTION

26 CURRENT TAX LIABILITIES (` in crore) As at 31st March, 2019 Current tax liability (net) 1.56 1.56

27 INCOME TAX (` in crore) As at 31st March, 2019 a ,QFRPHWD[UHFRJQLVHGLQSURͤWRUORVV Current tax expense 53.58 Deferred tax expense Origination and reversal of temporary differences (1.91) Total tax expenses 51.67 b Reconciliation of effective tax rate 3URͤWEHIRUHWD[  Domestic tax rate  7D[XVLQJWKH&RPSDQ\ VGRPHVWLFWD[UDWH 60.28 Increase / reduction in Taxes on account of Deduction / exemptions in taxable income (9.50) Other non deductible expenses 0.89 ,QFRPHWD[H[SHQVHVFKDUJHGWRVWDWHPHQWRISURͤWDQGORVV 51.67 Effective tax rate 29.955% During the year ended March 31, 2019, company has taken deduction/ availed exemption for followings :  D  8QGHUVHFWLRQ,&RIWKH,QFRPH7D[$FWRQ3URͤWVRIHOLJLEOHLQGXVWULDOXQGHUWDNLQJVDW.DVKLSXU8WDUDNKDQG b) Under section 32AD of the Income-Tax Act, 1961 @ 15% on the Plant & Machinery installed at newly set-up unit at +LQGXSXULQWKHQRWLͤHGEDFNZDUGDUHDRIWKHVWDWHRI$QGKUD3UDGHVK c) Research and development expenditure @ 150% in accordance with the provisions of Section 35(2AB) of the Income-Tax Act, 1961.

Notes To Consolidated Financial Statements 175 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

28 REVENUE FROM OPERATIONS (` in crore) For the year ended 31st March, 2019 a. Sale of products (net of GST); i. Steel pipe and strips  ii. Lighting and consumer durables 1,535.71 5,908.77 Less Inter Segment Sales 5.07 5,903.70 b. Other operating revenue; i. ,QYHVWPHQWSURPRWLRQDVVLVWDQFH UHIHUQRWHQR  ii. Export incentives and claims  68.96 c. Sale of services 2.38 2.38 5,975.04

29 OTHER INCOME (` in crore) For the year ended 31st March, 2019 a. ,QWHUHVW,QFRPHIURPͤQDQFLDODVVHWV 3.73 b. 3URͤWRQVDOHRISURSHUW\SODQWDQGHTXLSPHQW 0.19 c. Miscellaneous income 0.19 4.11 30 COST OF MATERIALS CONSUMED (` in crore) For the year ended 31st March, 2019 i. Steel pipe and strips a. Raw materials (Imported) 162.30 b. Raw materials (Indigenous)  ii. Lighting and consumer durables a. Raw materials (Imported) 170.09 b. Raw materials (Indigenous)  c. Packing materials consumed  4,405.96 Less Inter Segment Consumption 5.07 4,400.89 31 PURCHASE OF STOCK-IN-TRADE (` in crore) For the year ended 31st March, 2019 Lighting and consumer durables (outsourced) 288.60 288.60

176 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

32 CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN-TRADE AND WORK-IN-PROGRESS (` in crore) For the year ended 31st March, 2019 Inventories at the end of the year Finished goods 321.80 REPORTS STATUTORY OVERVIEW CORPORATE Work in Progress  465.85 Inventories at the beginning of the year Finished goods  Less : Excise Duty on opening stock - Finished goods (Net)  FINANCIAL SECTION Work in Progress 102.82 504.73 38.88 33 EMPLOYEE BENEFIT EXPENSES (` in crore) For the year ended 31st March, 2019 a. Salaries, wages and bonus  b. Contribution to provident and other funds 13.22 c. Staff welfare expenses  293.76

34 FINANCE COST (` in crore) For the year ended 31st March, 2019 a. Interest expenses 107.37 b. Other borrowing cost 7.71 115.08

35 DEPRECIATION AND AMORTISATION EXPENSES (` in crore) For the year ended 31st March, 2019 a. Depreciation (refer note 5 ) 88.51 88.51

Notes To Consolidated Financial Statements 177 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

36 OTHER EXPENSES (` in crore) For the year ended 31st March, 2019 a. Consumption of stores and spares  b. Power, fuel and water charges  c. Repairs and maintenance : - plant and machinery 2.31 - buildings 0.78 - others 1.12 d. Product warranties 79.90 e. Sales promotion expenses  f. Commission on sales  g. Advertisement and publicity 16.15 h. Freight and forwarding expenses 185.85 i. Allowance for doubtful debts / bad debts W/off 5.12 j. Rent 11.89 k. Rates and taxes  l. Insurance 2.37 m. Postage and telephone  n. Travelling and conveyance 23.93 o. Loss on discard / disposal of property, plant and equipment 0.22 p. Corporate social responsibility expenses 2.57 q. Legal and professional expenses 3.93 r. $XGLWRU VUHPXQHUDWLRQ H[FOXGLQJ*67VHUYLFHWD[LQSXWFUHGLW for audit  for tax audit 0.06 IRUFHUWLͤFDWLRQZRUN 0.05 s. Miscellaneous expenses  580.95 37 OTHER COMPREHENSIVE INCOME (` in crore) For the year ended 31st March, 2019 i ,WHPVWKDWZLOOQRWEHUHFODVVLͤHGWRSURͤWRUORVV  5HPHDVXUHPHQWVRIWKHGHͤQHGEHQHͤWSODQV   ii Income tax relating to items that will not be reclassified to profit or loss  5HODWHGWRUHPHDVXUHPHQWVRIWKHGHͤQHGEHQHͤWSODQV 1.69 (3.15)

38 EARNING PER SHARE (` in crore) For the year ended 31st March, 2019 The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share: A Issued equity shares 1R V  Weighted average equity shares outstanding - Basic and B Diluted 1R V  C 1HWSURͤWDIWHUWD[ 120.81 Basic Earning per equity share ( C/B) Per / ` 22.20 Diluted Earning per equity share ( C/B) Per / ` 22.20 )DFH9DOXHSHU(TXLW\6KDUH ` 10.00

178 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

39 LEASES  7KH*URXSKDYHOHDVLQJDUUDQJHPHQWVLQWKHQDWXUHRIRSHUDWLQJOHDVHVIRUSUHPLVHV RIͤFHVJRGRZQHWF 7KHVH leasing arrangements are usually renewable by mutual consent or cancellable on mutually agreeable terms. The DJJUHJDWHOHDVHUHQWDOVSD\DEOHDUHFKDUJHGDVUHQWLQWKHVWDWHPHQWRISURͤWDQGORVV

40 EXPENDITURE INCURRED ON CORPORATE SOCIAL RESPONSIBILITY REPORTS STATUTORY OVERVIEW CORPORATE Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of the Companies Act, 2013 read with schedule III are as below: (` in crore) For the year ended 31st March, 2019 A Gross amount required to be spent FINANCIAL SECTION by the Group during the year 2.57 B Amount spent during the year i Construction/ acquisition of asset NIL ii On purpose other than (i) above – (a) Rural Development  (b) Naturopathy  (c) Other administrative expenses 0.12 2.57 Out of the above amount spent through Surya Foundation ` 2.57 crores

41 CONTINGENT LIABILITIES (` in crore) As at 31st March, 2019 I Guarantees Bank Guarantees issued by banks for which counter guarantee given by the Group 386.78 II Other contingent liabilities a) Export obligation under EPCG Scheme Duty involved on EPCG License 6.39 (Bonds Executed by the Group to Custom Department of ` 16.10 Crore) b) Estimated amount of contract remaining to be executed on capital account (Property, Plant and Equipment) and not provided for 8.60 c) Claims against the Group not acknowledged as debt 

III Entry of Goods into Local Area Act, 2008 : The Haryana Government levied Local Area Development Tax (The LADT Act) w.e.f. 5th May, 2000, which was declared XOWUDYLUHVE\WKH+RQ̵EOH3XQMDE +DU\DQD+LJK&RXUWRQWK0DUFK/DWHURQWKH+DU\DQD*RYHUQPHQWKDV repealed the LADT Act w.e.f. 8th April, 2008 and introduced in its place ‘The Haryana Tax on Entry of Goods in to Local $UHDV$FW̵ 5XOHVQRWQRWLͤHG ZKLFKZDVDOVRKHOGXOWUDYLUHVE\WKH+RQ̵EOH+LJK&RXUWRQVW2FWREHU Both these Acts were declared unconstitutional on the ground of non-compensatory. Subsequently, on the SLP of the Haryana Government, the Hon’ble Supreme Court Constitutional Bench vide its judgment dated 11th November, 2016 held the applicability of entry tax valid on compensatory ground. However, directed its Divisional Bench for examining the provisions on the issue of discrimination, local area etc. The Divisional Bench remanded back the matters to the +RQ̵EOH3XQMDE +DU\DQD+LJK&RXUWRQVW0DUFKZLWKDGLUHFWLRQWRͤOHIUHVKZULWSHWLWLRQVLQWKLVUHJDUGIRU IDFWXDOEDFNJURXQGVDQGRWKHUFRQVWLWXWLRQDOVWDWXWRU\LVVXHV$FFRUGLQJO\WKH*URXSKDVͤOHGIUHVKZULWSHWLWLRQRQ 27-05-2017 on the issues left open and the Hon’ble High Court issued order for stay of demand on 31-05-2017 and SURFHHGLQJVDUHXQGHUJRLQJZLWKWKH+RQ̵EOH+LJK&RXUW$VQHLWKHUWKH5XOHVRIWKHVDLG$FWRIZHUHQRWLͤHGQRU the same can be prescribed now by deletion of Entry 52 of the Constitution on implementation of GST. Subsequently, we have also revised our Writ petition on 25th September, 2018 wherein reference has also been given on judgment of Hon’ble High court in CWP No. 20788 of 2015 in which it was ordered that in absence of machinery provisions, Act can’t be operated. In view of above and based on the facts of our case and consultations made by the Group, a sum of ` 33.97 crore excluding interest has been considered as contingent liability. Accordingly, no provision has been made in accounts.

Notes To Consolidated Financial Statements 179 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

IV Income Tax Act. In respect of Income-tax assessments of the Group (for the year 2009-10,2010-11 & 2012-13) demand of ` FU were raised wherein, Group had appealed and the cases were decided in favour of the Group by CIT (A). Revenue has preferred an appeal before ITAT. Based on the decision in favour of the Group, interpretations and decisions of appellate authorities and Courts in similar cases and as per the consultations made, the Group is not liable for such tax and accordingly no provision has been made. 42 MOVEMENT IN WARRANTY PROVISION (` in crore) As at 31st March, 2019 Movement in warranty provision during the ͤQDQFLDO\HDUDUHSURYLGHGEHORZ As at beginning of the year  Arising During the Year 79.90 Utilised during the year 61.93 Closing balances as at  The Group gives warranties on certain products, which fail to perform satisfactorily during the warranty period. Provision made represents the amount of expected cost of meeting such obligation on account of repair/ replacement. It is expected WKDWVLJQLͤFDQWSRUWLRQRIWKHVHFRVWLVWREHLQFXUUHGZLWKLQDSHULRGRIWZR\HDUV

43 GOVERNMENT GRANTS (INVESTMENT PROMOTION ASSISTANCE) D 0DGK\D3UDGHVK,QGXVWULDO,QYHVWPHQW3URPRWLRQ$VVLVWDQFH6FKHPH bbbb The Group has made investment of ` 122.11 Crores and ` &URUHVIRUHVWDEOLVKLQJPDQXIDFWXULQJIDFLOLWLHVDW 0DODQSXUDQRWLͤHGEDFNZDUGGLVWULFWRI0DGK\D3UDGHVKLQWKHHOLJLEOHLQYHVWPHQWSHULRGDVSHUWKHSURYLVLRQVRI 0DGK\D3UDGHVK,QGXVWULDO,QYHVWPHQW3URPRWLRQ$VVLVWDQFH6FKHPHDQGUHVSHFWLYHO\7KH*URXSKDV been eligible for capital linked grant (to the extent of aforesaid capital investment on satisfying the conditions) up to 27th March, 2020 & 1st March, 2025 respectively. On GST implementation, the State Government has revised the policy by which the Group continues to be eligible for the said periodical assistance. Accordingly, grants of ` 23.22 Crores has been accounted as other operating revenue during the current year. The cumulative recognised grants are of `&URUHVXSWRVW0DUFKRXWRIZKLFK` 36.17 Crores remained outstanding as at 31st March, 2019.  E $QGKUD3UDGHVK,QGXVWULDO,QYHVWPHQW3ROLF\ ,'3 bb The Group has made an investment of `&URUHVIRUHVWDEOLVKLQJPDQXIDFWXULQJIDFLOLWLHVDW+LQGXSXUDQRWLͤHG backward district of Andhra Pradesh, during the eligible investment period, as per the provisions of Andhra Pradesh Industrial Investment Policy (IDP) 2015-2020. The Group has been eligible for Capital linked grant (to the extent of DIRUHVDLGFDSLWDOLQYHVWPHQW E\ZD\RIUHLPEXUVHPHQWRI9$7&676*67SDLGGXULQJWKHSHULRGRI\HDUVDQG partial reimbursement of power cost @ Re 1.00 per unit, during the period of 5 years from 1st March, 2017, on satisfying the conditions mentioned under the scheme.   7KH*URXSKDVUHFRJQLVHGJUDQWVWRZDUGV9$7&676*67RI`6.29 Crores during the current year as other operating revenue. The grant receivable in the form of reimbursement of Power Cost of ` 0.76 Crores during the year has been netted from the power cost. The Cumulative recognised grants are of `&URUHVXSWRVW0DUFKRXWRIZKLFK `&URUHVUHPDLQHGRXWVWDQGLQJDVDWVW0DUFK  c GST Reimbursement against Excise Exemption The Group’s manufacturing unit at Mahuakheraganj, Uttarakhand was under area based excise exemption scheme YLGH1RWLͤFDWLRQ1R'DWHGIRUWKHSHULRGXSWRWK'HFHPEHU$FFRUGLQJO\WKHSURGXFWV manufactured by the Group were exempted from the payment of excise duty up to 30th June, 2017 and on implementation RI*67ZHIVW-XO\WKH*URXSLVHOLJLEOHIRUWKHJUDQWIRUFRPSHQVDWLQJWKHHDUOLHUEHQHͤWRIH[FLVHH[HPSWLRQE\ ZD\RIUHLPEXUVHPHQWRI*67IRUZKLFKUHTXLUHGDSSOLFDWLRQUHSUHVHQWDWLRQVKDYHEHHQPDGH%DVHGRQWKHEHQHͤWV available under the erstwhile excise exemption scheme, scheme announced and the representation made, the Group LVHQWLWOHGIRUVLPLODUEHQHͤWVXQGHU*67UHJLPH$FFRUGLQJO\LQFRPHRI` &URUHVUHFRJQLVHGGXULQJWKHFXUUHQW year and cumulative recognised income of ` &URUHVXSWRVW0DUFKRXWRIZKLFK` 7.20 Crores remained outstanding as at 31 March, 2019 towards reimbursement of GST paid by the unit.

180 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

44 REVENUE RECOGNITION  7KH*URXSKDVDGRSWHG,QG$6̴5HYHQXHIURPFRQWUDFWVZLWKFXVWRPHUV̵IURPVW$SULOXQGHUWKHPRGLͤHG UHWURVSHFWLYHDSSURDFKWKHUHZHUHQRVLJQLͤFDQWDGMXVWPHQWVUHTXLUHGWREHPDGHLQUHWDLQHGHDUQLQJVDVDWVW$SULO 2018.

45 PROJECT FOR SUPPLY, IMPLEMENTATION, OPERATION AND MAINTENANCE OF ORISSA GREENFIELD STREET REPORTS STATUTORY OVERVIEW CORPORATE LIGHTING SYSTEM THROUGH SPV COMPANY SRL has been awarded project by Directorate of Municipal Administration(DMA), Orissa for designing, implementing, RSHUDWLQJ PDLQWDLQLQJ WKH *UHHQͤHOG 3XELF 6WUHHW /LJKWLQJ 6\VWHP DORQJ ZLWK RWKHU LQIUDVWUXFWXUH LQFOXGLQJ &&06 DQG DXWRPDWLRQ 7KH SURMHFW LV WR EH H[HFXWHG WKURXJK 6SHFLDO 3XUSRVH 9HKLFOH &RPSDQ\ 639  DV SHU WHUPV RI /2$ DQG accordingly SRL has incorporated a wholly-owned subsidiary namely SURYA ROSHNI LED LIGHTING PROJECTS LIMITED

&,1̰8'/3/& RQVW-DQXDU\YLGH&HUWLͤFDWHRI,QFRUSRUDWLRQGDWHGUG-DQXDU\ FINANCIAL SECTION

SRL has executed Supply Installation Operation and Maintenance (SIOM) Agreement on 29th December, 2018 with the DMA DQG8UEDQ/RFDO%RGLHV$VSHUWHUPVRI6,20WKH65/KDVWRH[HFXWHVKDUHKROGHUDJUHHPHQWZLWKWKH639&RPSDQ\ DQGQRYDWLRQDJUHHPHQWZLWKWKH'0$DQGWKH639FRPSDQ\65/KDVFRPPLWWHGWKHIXQGLQJUHTXLUHPHQWRI639IRUSURMHFW completion including enhancement in the value of project. SRL has also committed to compensate the losses/ damages, if DQ\VXIIHUHGE\WKH'0$GXHWREUHDFKRIFRQWUDFWE\WKH639DVSHUWHUPV FRQGLWLRQVRI6,20

46 PRE-OPERATIVE EXPENSES CAPITALISED DURING THE YEAR: The Group has incurred capital expenditure for establishing on 3 LPE coating unit at Anjar (Gujarat) , wherein following pre-operative expenses are capitalised (` in crore) Year ended 31st March, 2019 Raw materials consumed 6.73 (PSOR\HHEHQHͤWV 1.57 Borrowing cost 2.58 Other expenses Power charges 2.36 Outward freight 0.15 Others 0.65 Total 14.04 Less: Realisation  Total 3.50

47 EMPLOYEE BENEFITS  'LVFORVXUHVSXUVXDQWWR,QG$6̸(PSOR\HH%HQHͤWV̹ 6SHFLͤHGXQGHUWKHVHFWLRQRIWKH&RPSDQLHV$FW (the Act) read with Companies (Indian Accounting Standards) Rule 2015 ( as amended from time to time) and other relevant provision of the Act) are given below

 &RQWULEXWLRQWR'HͤQHG&RQWULEXWLRQ3ODQUHFRJQLVHGDVH[SHQVHVDUHDVXQGHU

(` in crore) Year Ended 31st March, 2019 (PSOR\HU̵V&RQWULEXWLRQWRGHͤQHGFRQWULEXWLRQSODQV 13.22

Notes To Consolidated Financial Statements 181 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

, 7KHSULQFLSDODFWXDULDODVVXPSWLRQVXVHGIRUHVWLPDWLQJWKH*URXS̵VGHͤQHGEHQHͤWREOLJDWLRQVDUHVHWRXWEHORZ

Valuation as at 31st March, 2019 Attrition rate for various ages in % 1.00 to 5.00 Discount Rate in % 7.66 Expected Rate of increase in salary in % 5.75 Mortality rate - Indian Assured Lives Mortality (2006-08) 100% Expected Average remaining working lives of employees (years) 16.30

a) Discount rate is based on the prevailing market yields of Indian Government securities as at the balances sheet date for the estimated term of obligations. b) The assumption of future salary increase takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in employment market. II Movement in Obligation

(` in crore) Particulars As at 31st March, 2019 Gratuity Compensated (partly absences funded) (Unfunded) Present value of obligation as at the beginning of the period 38.60  Current Service cost 3.37 1.72 Past Service Cost including curtailment Gain/Losses - - Interest cost 2.99 0.89 %HQHͤWVSDLG   (3.01) Actuarial loss / (gain) arising from changes in Demographic assumptions - - Actuarial loss / (gain) arising from changes in Financial assumptions 0.26 0.08 Actuarial loss / (gain) arising from experience adjustment  1.93 Present value of obligation as at the end of the period 45.56 13.08

,,, $PRXQWUHFRJQLVHGLQWKHVWDWHPHQWRI3URͤWDQG/RVV (` in crore) Year ended 31st March, 2019 Gratuity Compensated Particulars absences Current Service cost 3.37 1.72 Interest cost 2.98 0.89 Remeasurement - Actuarial loss/(gain) - 2.01 ([SHQVHVUHFRJQLVHGLQWKHVWDWHPHQWRI3URͤWDQG/RVV 6.35 4.62

182 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

,9 &RPSRQHQWRIGHͤQHGEHQHͤWFRVWVUHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPH (` in crore) Gratuity Year ended 31st March, 2019

Actuarial loss / (gain) arising from changes in demographic assumptions - REPORTS STATUTORY OVERVIEW CORPORATE Actuarial loss / (gain) arising from changes in Financial assumptions 0.26 Actuarial loss / (gain) arising from experience adjustment  Actuarial loss / (gain) arising on plan asset - &RPSRQHQWRIGHͤQHGEHQHͤWFRVWVUHFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPH 4.84 V Current and non-current provision for Gratuity and Compensated absences

(` in crore) FINANCIAL SECTION Particulars As at 31st March, 2019 Gratuity Compensated absences Current provision 5.55  Non-current provision  10.67 Total provision 45.56 13.08

9, 0DWXULW\SURͤOHRI'HͤQHG%HQHͤW2EOLJDWLRQDUHDVXQGHU

(` in crore) As at 31st March, 2019 Gratuity Compensated Particulars absences 0 to 1 Year   1 to 5 Years 6.97 2.25 5 Year Onwards 33.06  VII Movements in the fair value of the plan assets are as follows: (` in crore) Gratuity Year ended 31st March, 2019 Opening fair value of plan assets 0.02 Interest income - Return on plan assets (excluding amounts included in net interest expenses) - %HQHͤWVSDLG - Closing fair value of the plan assets 0.02 Note: The Group has invested the plan assets in India only with Life insurance corporation of India & SBI Life and closing value of the plan assets are the fair value of plan assets VIII Sensitivity Analysis: 6LJQLͤFDQWDFWXDULDO DVVXPSWLRQV IRU WKH GHWHUPLQDWLRQ RI WKH GHͤQHG REOLJDWLRQ DUH GLVFRXQW UDWH H[SHFWHG salary increase and withdrawal rate. The sensitivity analyses below have been determined based on reasonably

Notes To Consolidated Financial Statements 183 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

possible changes of respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant (` in crore) Particulars Year ended 31st March, 2019 Effect on Effect on Gratuity Compensated Obligation absences Obligation One percentage point increase in discount rate   (1.16) One percentage point decrease in discount rate 3.91 1.30 One percentage point increase in salary growth rate 3.96 1.31 One percentage point decrease in salary growth rate (3.72) (1.17) One percentage point increase in attrition rate 0.98 0.36 One percentage point decrease in attrition rate     Note : D  7KHVHQVLWLYLW\DQDO\VLVSUHVHQWHGDERYHPD\QRWEHUHSUHVHQWDWLYHRIWKHDFWXDOFKDQJHLQWKHGHͤQHGEHQHͤW obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. E  )XUWKHUPRUHLQSUHVHQWLQJWKHDERYHVHQVLWLYLW\DQDO\VLVWKHSUHVHQWYDOXHRIWKHGHͤQHGEHQHͤWREOLJDWLRQKDV been calculated using the projected unit credit method at the end of the reporting period, which is the same as that DSSOLHGLQFDOFXODWLQJWKHGHͤQHGEHQHͤWREOLJDWLRQOLDELOLW\UHFRJQLVHGLQWKHEDODQFHVKHHW  c) Their was no change in the method and assumptions used in preparing the sensitivity analysis from prior years.

48 RELATED PARTY TRANSACTIONS  ,QDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI,1'$6RQUHODWHGSDUW\GLVFORVXUHVQDPHRIWKHUHODWHGSDUW\UHODWLRQVKLS transactions and outstanding balances including commitments where control exits and with whom transactions have taken place during reported periods, are reported here List of related parties 1 Key Management Personnel S.No. Name Designation 1 Mr. Jai Prakash Agarwal Chairman 2 Mr. Raju Bista Managing Director 3 0U9LQD\6XU\D $SSRLQWHGRQVW-DQXDU\ Whole Time Director  Mr. Kaustubh N Karmarkar (Appointed on 10th August, 2018) Whole Time Director 5 Mr. Mukesh Tripathi $ Whole Time Director 6 Mrs. Urmil Agarwal Director 7 Mr.Krishan Kumar Narula Independent Director 8 Mr. Ravinder Kumar Narang Independent Director 9 Mr. Tara shankar sudhir Bhattacharya Independent Director 10 Mr.Sudhanshu Kumar Awasthi Independent Director 11 Mr. Surendra Singh Khurana Independent Director 12 Mr.Sunil Sikka Independent Director 13 Mr.Utpal Kumar Mukhopadhyay* Independent Director  Mrs. Shivani Singla # IDBI Bank - Nominee 15 Mr. R.N. Maloo ED & Group CFO 16 Mr. Ramanjit Singh CEO-Lighting Operations 17 Mr. Tarun Baldua CEO- Steel Operations 18 Mr. B B Singal 6U93 &RPSDQ\6HFUHWDU\ $ Resigned from the Board of the Company on 18th May, 2018 * Resigned from the Board of the Company on 2nd June, 2018 and later deceased on 20th June, 2018 # Nomination withdrawn w.e.f. 5th March 2019

184 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

2 Relatives of key management personnel where transactions have taken place S.No. Name of Relatives Relationship 1 Mr. Rajesh Bista Brother of Mr. Raju Bista 2 Mrs. Puja Surya 6SRXVHRI0U9LQD\6XU\D

3 Master Jaivardhan Surya 6RQRI0U9LQD\6XU\D REPORTS STATUTORY OVERVIEW CORPORATE  Ms. Parinistha Surya 'DXJKWHURI0U9LQD\6XU\D 5 0V9DVXGKD6XU\D 'DXJKWHURI0U9LQD\6XU\D i Compensation of Key Management Personnel of the Group (` in crore) S. Nature of transaction/ relationship Year ended No. 31st March, 2019 FINANCIAL SECTION a) 6KRUW7HUP%HQHͤW VHHQRWHVEHORZ 13.09 b) Directors commission  7RWDO6KRUW7HUPEHQHͤWV 17.41

c) 'LUHFWRUVLWWLQJ)HH V 0.21 Notes:   $ 6KRUWWHUPEHQHͤWVFRPSULVHVWKHH[SHQVHVUHFRUGHGXQGHUWKHKHDGHPSOR\HHEHQHͤWH[SHQVHV HJ6DODU\DQG wages, contribution to provident fund, NPS, Leave encashment payments, and taxable value of perquisities etc B. The liability for gratuity and compensated absences are provided on actuarial basis, amounts accrued pertaining to key managerial personnel are not included above. C. The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends. ii Loan given to Key Management Personnel (` in crore) S. Year ended NO. 31st March, 2019 Transaction during the year 0.36 Balance at year end 0.19

iii Dividend paid to Key Management Personnel 0.43

iv Payment of Salaries and perquisites to relatives of Key Management Personnel 0.34

v Dividend paid to relatives of Key Management Personnel 0.11 49 SEGMENT INFORMATION Description of segments and principal activities The Chief operational decision makers (CODM) monitor the operating results of its Business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is HYDOXDWHGEDVHGRQSURͤWRUORVVDQGLVPHDVXUHGFRQVLVWHQWO\ZLWKSURͤWRUORVVLQWKHͤQDQFLDOVWDWHPHQWV2SHUDWLQJ VHJPHQWVKDYHEHHQLGHQWLͤHGRQWKHEDVLVRIWKHQDWXUHRISURGXFWVVHUYLFHVDQGKDYHEHHQLGHQWLͤHGDVSHUWKH TXDQWLWDWLYHFULWHULDVSHFLͤHGLQWKH,QG$6 

Notes To Consolidated Financial Statements 185 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

 6SHFLͤFDOO\WKH*URXS̵VUHSRUWDEOHVHJPHQWVXQGHU,QG$6DUHDVIROORZV 1 Steel Pipe and Strips (comprises Steel pipes and cold rolled strips)   /LJKWLQJDQGFRQVXPHUGXUDEOHV FRPSULVHV/DPSVͤWWLQJVVWUHHWOLJKWIDQVHOHFWULFDSSOLDQFHVDQGDOOLHGLWHPV  ,GHQWLͤFDWLRQRI6HJPHQWV   )RU ͤQDQFLDO VWDWHPHQWV SUHVHQWDWLRQ SXUSRVHV WKHVH LQGLYLGXDO RSHUDWLQJ VHJPHQWV KDYH EHHQ DJJUHJDWHG LQWR D single operating segment after taking into consideration the similar nature of the products, production processes and RWKHU ULVN IDFWRUV )RU ͤQDQFLDO VWDWHPHQWV SUHVHQWDWLRQ SXUSRVHV WKHVH LQGLYLGXDO RSHUDWLQJ VHJPHQW̵V KDYH EHHQ aggregated into a single operating segment taking into account the following factors:  L 7KHVHRSHUDWLQJVHJPHQWVKDYHVLPLODUORQJWHUPJURVVSURͤWPDUJLQV  ii. The nature of the products and production processes are similar; and iii. The methods used to distribute the products to the customer are same The additional factors taken into consideration for aggregation into a single operating segment are as follows: i. Operating revenues and expenses related to both third party and inter-segment transactions are included in determining the segment results of each respective segment. ii. Finance expense incurred are not allocated to individual segment and the same has been reflected at the Company level for segment reporting. iii. Segment assets represent assets directly managed by each segment, and primarily include receivables, property, plant and equipment, intangibles, inventories, operating cash and bank balances, inter-segment assets and exclude derivative ͤQDQFLDODVVHWVGHIHUUHGWD[DVVHWVDQGLQFRPHWD[UHFRYHUDEOH iv. Segment liabilities comprise operating liabilities and exclude external borrowings, provision for taxes, deferred tax OLDELOLWLHVDQGGHULYDWLYHͤQDQFLDOOLDELOLWLHV  v. Segment capital expenditure comprises additions to property, plant and equipment and intangible assets (net of rebates, where applicable). vi. Unallocated expenses/ results, assets and liabilities include expenses/ results, assets and liabilities (including inter- segment assets and liabilities) and other activities not allocated to the operating segments. These also include current WD[HVGHIHUUHGWD[HVDQGFHUWDLQͤQDQFLDODVVHWVDQGOLDELOLWLHVQRWDOORFDWHGWRWKHRSHUDWLQJVHJPHQWV I. Segment revenues and results

(` in crore) Particulars For the year ended 31st March, 2019 Segment revenue Steel Pipe and Strips  Lighting and consumer durables  5,980.11 Less : Inter Segment revenue 5.07 5,975.04 6HJPHQWSURͤW HDUQLQJ Steel Pipe and Strips 161.15 before interest and taxes) Lighting and consumer durables  287.56 Finance costs 115.08 3URͤWEHIRUHWD[ 172.48 Tax expense 51.67 3URͤWDIWHUWD[ 120.81

II. Segment Assets and Liabilities (` in crore) Particulars As at 31st March, 2019 Segment assets Steel Pipe and Strips 1,889.38 Lighting and consumer durables 1,112.19 Total Segment assets 3,001.57 Unallocated assets 27.10 3,028.67

186 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

(` in crore) Particulars As at 31st March, 2019 Segment liabilities Steel Pipe and Strips 371.02 Lighting and consumer durables 232.79 Total Segment Liabilities 603.81 REPORTS STATUTORY OVERVIEW CORPORATE Unallocated Liabilities 1,272.97 1,876.78 Notes : I Unallocated assets are comprises of MAT and income tax refundable. II Unallocated liabilities are comprises borrowings, provision for income tax, deferred tax etc. FINANCIAL SECTION III. Other segment information (` in crore) Particulars As at 31st March, 2019 Cost incurred on acquisition of Steel Pipe and Strips  tangible assets Lighting and consumer durables 19.93 108.40 Depreciation and amortisation Steel Pipe and Strips 65.73 expense Lighting and consumer durables 22.78 88.51 IV. Geographical information The Group operates in seven geographical areas: India (country of domicile), Asia, Africa, North-America, Central America, South-America and Europe. The Group’s revenue from operations from customers by location of operations and information about its non- current assets by location of assets are detailed below: a. Revenue from external customers (` in crore) Year ended 31st March, 2019 India  Outside India 833.82 Total 5,975.04

b. Non-current assets (` in crore) Particulars As at 31st March, 2019 Non-Current Assets Within India  Outside India Nil 1,166.46

Notes To Consolidated Financial Statements 187 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

V. Information about major customers Group has no single customer from whom the revenue is not less than 10 % of the revenue from external customers of the Group 50 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

(` in crore) Particulars Year ended 31st March, 2019 Dividend proposed for Equity shareholders @ ` 2.00 per share 10.88  7KHUHDUHQRRWKHUVLJQLͤFDQWVXEVHTXHQWHYHQWLWHPVZKLFKUHTXLUHDQDGMXVWPHQWLQͤQDQFLDOVWDWHPHQWV 51 FINANCIAL INSTRUMENTS  )DLUYDOXHRIͤQDQFLDODVVHWVDQGOLDELOLWLHV  7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIͤQDQFLDODVVHWVDQGOLDELOLWLHVE\FDWHJRULHVZHUHDVIROORZV As at 31st March, 2019 (` in crore) S. Particulars Amortised cost Fair value Total carrying No. (Level 2) value Assets: i Cash and cash equivalents  -  ii Bank Balances other than (ii) above  -  iii Trade receivables 835.32 - 835.32 iv 2WKHUͤQDQFLDODVVHWV   Total 921.68 - 921.68 Liabilities: i Non Current Borrowings  -  ii Current Borrowings 796.67 - 796.67 iii Trade payables 350.01 - 350.01 iv 2WKHUͤQDQFLDOOLDELOLWLHV 108.89 0.67 109.56 Total 1,650.43 0.67 1,651.10

The fair value hierarchy is based on inputs to valuation techniques that are use to measure fair value that are either observable or unobservable and consists of the following three levels : Level 1: Quoted prices in active markets for identical assets and liabilities Level 2:Directly or indirectly observable market inputs, other than Level 1 inputs. This includes the assets and liabilities carried at forward contract rates / prevailing exchange rate at year end and assets carried at present value using appropriate discounting rate Level 3: Inputs which are not based on observable market data. 52 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group’s risk management policies are established to identify and analyse the risks faced by the Group’s, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee. The Group is H[SRVHGWRͤQDQFLDOPDUNHWULVNFUHGLWULVNDQGOLTXLGLW\ULVN

188 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

I Financial Market risk Financial market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a FKDQJHLQWKHSULFHRIͤQDQFLDOLQVWUXPHQW7KHYDOXHRIDͤQDQFLDOLQVWUXPHQWPD\FKDQJHDVDUHVXOWRIFKDQJH in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive

LQVWUXPHQWV0DUNHWULVNLVDWWULEXWDEOHWRDOOPDUNHWULVNVHQVLWLYHͤQDQFLDOLQVWUXPHQWVLQFOXGLQJIRUHLJQFXUUHQF\ REPORTS STATUTORY OVERVIEW CORPORATE trade receivables, trade payables and borrowings.   D ,QWHUHVWUDWHULVN ,QWHUHVWUDWHULVNLVWKHULVNWKDWWKHIDLUYDOXHRUIXWXUHFDVKIORZVRIDͤQDQFLDOLQVWUXPHQWZLOOIOXFWXDWHEHFDXVH of change in market interest rates. In order to optimize the Group’s position with regards to interest and to manage WKHLQWHUHVWUDWHULVNͤQDQFHGHSDUWPHQWSHUIRUPVDFRPSUHKHQVLYHFRUSRUDWHLQWHUHVWUDWHULVNPDQDJHPHQWE\ FINANCIAL SECTION EDODQFLQJWKHSURSRUWLRQRIͤ[HGUDWHZLWKUHVHWFODXVHDQGIORDWLQJUDWHͤQDQFLDOLQVWUXPHQWVLQLWVWRWDOSRUWIROLR The borrowings of the Group are on floating interest rate along with periodical interest reset. 7KH *URXS LV QRW H[SRVHG WR VLJQLͤFDQW LQWHUHVW UDWH ULVN DW WKH UHVSHFWLYH UHSRUWLQJ GDWHV :LWK DOO RWKHU variables held constant, the following table demonstrates the impact of borrowing cost on floating rate portion of loans and borrowings are taken. (` in crore) Interest rate sensitivity (IIHFWRQSURͤWEHIRUHWD[ Decrease by Increase by 50 basis point 50 basis point For the year ended 31st March, 2019 5.96 (5.96) E )RUHLJQFXUUHQF\ULVN The Group’s transacts business primarily in Indian Rupee, USD and Pound sterling (GBP). The Group’s has taken foreign currency loans and has trade payables as well as receivables in foreign currency. The Company evaluates foreign currency exposure time to time and follows established risk management policies by taking foreign exchange forward contracts mostly with a maturity less than one year from the reporting date. The *URXS̵VGRQRWXVHGHULYDWHͤQDQFLDOLQVWUXPHQWIRUWUDGLQJRUVSHFXODWLRQSXUSRVHWRKHGJHH[SRVXUHRI foreign currency risk. The net exposure of foreign currency payable in USD stand ` 13.27 crore as on 31st March, 2019 after considering forwarding contracts taken by the Company.

The particulars of forward contract taken are given below Type No. of Contract US$ Equivalent (` In Crore) (Million) As at 31st March, 2019 Sell 11 8.58 59.32 Buy 37 52.32 361.79 II Credit risk   &UHGLWULVNLVWKHULVNRIͤQDQFLDOORVVWRWKH&RPSDQ\LIDFXVWRPHURUFRXQWHUSDUW\WRDͤQDQFLDOLQVWUXPHQWIDLOV to meet its contractual obligations, and arises principally from the Company’s receivables from customers and FDVKDQGFDVKHTXLYDOHQWV7RPDQDJHWKLVWKH&RPSDQ\SHULRGLFDOO\DVVHVVHVWKHͤQDQFLDOULVNOLPLWVRIWKH customers, taking into account the payment behaviour, aging of outstanding, credit ratings, current economic trends, and analysis of historical bad debts further the Company makes provision on trade receivables based on Expected Credit loss (ECL) method based on provision matrix.

Trade Receivable The Group’s exposure to credit risk is influenced by the individual characteristics of each customer, Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Group grants credit terms in the normal course of business. The Group has a detailed review mechanism of overdue trade receivables at various levels in the organisation to ensure proper attention and focus on realisation.

Notes To Consolidated Financial Statements 189 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is as follows: (` in crore) Particulars As at 31st March, 2019 Not past due 637.51 1-180 days past due 155.13 181-365 days past due 13.88 More than one year 28.80 835.32

Expected credit loss assessment Exposures to customers outstanding at the end of each reporting period are reviewed by the Group to determine incurred and expected credit losses. Management believes that the unimpaired amounts that are past due are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk

The movement in the allowances for impairment in respect of trade receivables during the year was as follows:

(` in crore) Particulars As at 31st March, 2019 Opening Balances 7.08 Add : Impairment loss recognised / reversed  Less : Write off of bad debts 0.07 Closing balance 11.69

Cash and Cash Equivalents, Deposit in Banks and other Financial instruments The Group considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. Generally, the balances are maintained ZLWKWKHLQVWLWXWLRQVZLWKZKLFKWKH*URXSKDVDOVRDYDLOHGERUURZLQJV7KH*URXSGRHVQRWPDLQWDLQVLJQLͤFDQW FDVKDQGGHSRVLWEDODQFHVDVLWKDVVXIͤFLHQWYDFDQWFDVKFUHGLWOLPLWVZLWKLWVEDQNHUV)RURWKHUͤQDQFLDODVVHWV WKH *URXS PRQLWRUV UDWLQJV FUHGLW VSUHDGV DQG ͤQDQFLDO VWUHQJWKV RI LWV FRXQWHUSDUWLHV %DVHG RQ LWV RQJRLQJ assessment of the counter party’s risk, the Group adjust its exposures to various counter parties. Based on the DVVHVVPHQWWKHUHLVQRLPSDLUPHQWLQRWKHUͤQDQFLDODVVHWV

III Liquidity risk   /LTXLGLW\ULVNLVGHͤQHGDVWKHULVNWKDWWKH&RPSDQ\ZLOOQRWEHDEOHWRVHWWOHRUPHHWLWVREOLJDWLRQVRQWLPHRUDW DUHDVRQDEOHSULFH7KH*URXS̵VͤQDQFHGHSDUWPHQWPDQDJHWKHOLTXLGLW\WKURXJKYHULW\RIVRXUFHVRIERUURZLQJV E\ HQVXULQJ VXIͤFLHQW OLTXLGLW\ WR PHHW LWV OLDELOLWLHV ZKHQ GXH XQGHU DOO FLUFXPVWDQFHV ZLWKRXW LQFXUULQJ XQDFFHSWDEOHORVVHVRUULVNWRWKH*URXS̵VUHSXWDWLRQ7KHFXUUHQWFRPPLWWHGERUURZLQJOLPLWDUHVXIͤFLHQWWRPHHW its requirement. The Group monitor rolling forecast for its liquidity requirements.   0DWXULW\SURͤOHRIͤQDQFLDOOLDELOLWLHV   7KHWDEOH EHORZ SURYLGHV GHWDLOV UHJDUGLQJ WKH UHPDLQLQJ FRQWUDFWXDO PDWXULWLHV RI ͤQDQFLDO OLDELOLWLHV DW WKH reporting date. (` in crore) As at 31st March, 2019 Less than Above Total 1 year 1 year Non Current Borrowings 60.01   Current Borrowings 796.67 - 796.67 Trade payables 350.01 - 350.01 2WKHUͤQDQFLDOOLDELOLWLHV 109.56 - 109.56 Total 1,316.25 334.85 1,651.10

190 ANNUAL REPORT 2018-19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2019 (Contd.)

53 CAPITAL MANAGEMENT

For the purposes of the Group’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Group’s Capital Management is to maximize shareholder value. The Board of Directors of respective companies monitors the return on capital, dividend to shareholders, maintain balance between capital and borrowing in

the light of changes in economic environment and the business requirements. In order to achieve this overall objective, the REPORTS STATUTORY OVERVIEW CORPORATE *URXS̵VFDSLWDOPDQDJHPHQWDPRQJVWRWKHUWKLQJVDLPVWRHQVXUHWKDWLWPHHWVͤQDQFLDOFRYHQDQWVDWWDFKHGWRWKHLQWHUHVW bearing loans and borrowings. Further the Group monitors capital using gearing ratio, which is net debt divided by Equity and net debt. as under: - (` in crore) Particulars As at 31st March, 2019 FINANCIAL SECTION Debt (consist of long term and short term borrowings refer note 17 and 21 ) 1,191.53 Less: Cash and cash equivalents  Net Debt 1,189.89 Equity 1,151.86 Equity and Net Debt  Gearing ratio in % 50.81%

54 EXPENDITURE ON R&D  *URXSKDVPDGH&DSLWDODQG5HYHQXHH[SHQGLWXUHIURPWKHͤQDQFLDO\HDUWRLQUHVSHFWRILWV8QLW6XU\D Technology & Innovation Centre (R&D LAB) D-63, Hosiery Complex, Phase – II, Noida (U.P)as tabulated below : Capital & Revenue Expenditure Break-Up Financial Year Wise (` in crore)

Financial Year Capital "Revenue Total Expenditure Expenditure Expenditure incurred during the year 2011 – 2012 11.18  11.22 2012 – 2013 0.02   ̰ 0.05 1.70 1.75 ̰ 0.30 2.39 2.69 2015 – 2016  2.99 3.13 2016 – 2017 0.23  3.37 2017 – 2018 0.05 3.36  2018 – 2019 0.10 3.16 3.26 )XUWKHUWKHFDSLWDODQGUHYHQXHH[SHQGLWXUHDVVWDWHGDERYHRIUHVSHFWLYHͤQDQFLDO\HDUVRIWKHDERYHPHQWLRQHG5 ' &HQWUHLVUHIOHFWHGDQGIRUPVSDUWRIWKH)L[HG$VVHWV LQFDVHRIFDSLWDOH[SHQGLWXUH DQG(PSOR\HHEHQHͤWH[SHQVHV Administrative expenses and other revenue expenses (in case of revenue expenditure) were grouped under relevant 1RWHV6FKHGXOHVRIWKHͤQDQFLDOVWDWHPHQWV$QQXDO$FFRXQWVRIUHVSHFWLYHͤQDQFLDO\HDUVRIWKH*URXS'HYHORSPHQW cost on intangible assets are Nil (previous year-Nil) during the year.  7KH*URXSKDVSHUSHWXDOV\VWHPRIEDODQFHFRQͤUPDWLRQDQGUHFRQFLOLDWLRQRI7UDGHUHFHLYDEOHVDQG7UDGHSD\DEOHVKRZHYHU DW\HDUHQGVRPHRIWKHEDODQFHVUHPDLQVXEMHFWWRFRQͤUPDWLRQDQGUHFRQFLOLDWLRQ

 $VWKH VROH VXEVLGLDU\ LQ WKH *URXS ZDV LQFRUSRUDWHG RQ VW -DQXDU\  2SHQLQJ ͤJXUHV RI VWDQGDORQH ͤQDQFLDO VWDWHPHQWVDUHFRQVLGHUHGDVRSHQLQJͤJXUHVRIWKHVHVWDWHPHQWVZKHUHYHUUHTXLUHGQRWGLVFORVHGVHSDUDWHO\

Notes To Consolidated Financial Statements 191 192 2019(Contd.) FOR THEYEARENDED31stMARCH, NOTES TO CONSOLIDATED STATEMENTS FINANCIAL  $GGLWLRQDOLQIRUPDWLRQSXUVXDQWWRSDUDRIJHQHUDOLQVWUXFWLRQVIRUWKHSUHSDUDWLRQRIFRQVROLGDWHGͤQDQFLDOVWDWHPHQWV

ANNUAL REPORT (` in crore) Name of entity Net assets 6KDUHLQSURͤW Share in other comprehensive Share in total or loss income comprehensive income

as % of Amount as % of Amount as % of Amount as % of Amount

2018-19 consolidated net FRQVROLGDWHGSURͤW consolidated other consolidated total assets or loss comprehensive comprehensive income income

Surya Roshni Limited 100.01 1,151.93 100.06 120.88 100.00 (3.15) 100.06 117.73

Indian Subsidiary

Surya Roshni LED (0.01) (0.07) (0.06) (0.07) - - (0.06) (0.07) Lighting Projects Limited

Total 100.00 1,151.86 100.00 120.81 100.00 (3.15) 100.00 117.66

58 APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS  7KHFRQVROLGDWHGͤQDQFLDOVWDWHPHQWVZHUHDSSURYHGIRULVVXHE\WKH%RDUGRI'LUHFWRUVRQVW0D\

Pipes

Lighting

SURYA ROSHNI LIMITED Fans Padma Tower - 1, Rajendra Place 2nd Floor, New Delhi - 110008 (INDIA) CIN: L31501HR1973PLC007543 Tel.: +91-11-47108000, 25810093 Fax: +01-11-25789560 E-mail: [email protected] Appliances Website: www.surya.co.in SURYA ROSHNI LIMITED Regd. Office: Prakash Nagar, Sankhol, Bahadurgarh – 124507 (Haryana) Corporate Identity Number (CIN) – L31501HR1973PLC007543 Phone: +91-1276- 241540 Fax No. +91-1276-241886 Website: www.surya.co.in, Email id: [email protected] NOTICE

Notice is hereby given that the Forty Sixth (46th) Annual General 196,197,198,200, 203 and Schedule V and such other applicable Meeting of the members of SURYA ROSHNI LIMITED (“the Company”) provisions, if any, of the Companies Act, 2013, (the Act) including any will be held on Wednesday, the 4th September, 2019 at 11.00 A.M., statutory modification or any amendment or any substitution or re- at the Registered Office of the Company at Prakash Nagar, Sankhol, enactment thereof for the time being in force, SEBI (Listing Obligation Bahadurgarh 124 507 (Haryana) to transact the following business: and Disclosure Requirements) Regulations, 2015 and as recommended by Nomination and Remuneration Committee (NRC), approval of ORDINARY BUSINESS the members of the Company be and is hereby accorded to the re- 1. To receive, consider and adopt the Audited Financial appointment of, Shri Raju Bista (DIN – 01299297) as the Managing Statements including Consolidated Financial Statements of Director of the Company for a period of five years commencing from the Company for the financial year ended 31st March, 2019 and 14th November, 2018 to 13th November, 2023, on terms and conditions the Reports of the Board of Directors and the Auditors thereon. as set out in the statement annexed to this notice. 2. To declare dividend of ` 2/- per equity share. RESOLVED FURTHER THAT in the event of loss or inadequacy of profits in any financial year during the aforesaid period, the Company 3. To appoint a Director in place of Smt. Urmil Agarwal (Director will pay Shri Raju Bista remuneration payable as aforesaid shall be Identification No. – 00053809) who retires by rotation and, the minimum remuneration subject to the compliance of Section 197 being eligible, offers herself for re-appointment. read with Schedule V of the Companies Act, 2013. SPECIAL BUSINESS RESOLVED FURTHER THAT the Board of Directors including the 4. To consider and, if thought fit, to pass with or without Nomination and Remuneration Committee of the Company be modification(s), the following resolution as a Special and are hereby authorised to modify the terms and condition of Resolution: appointment of Shri Raju Bista including but not limited to enhance, enlarge , alter or vary the scope and quantum of remuneration , “RESOLVED THAT pursuant to Section 180(1)(a) and other perquisites, benefits and amenities payable to Shri Raju Bista in applicable provisions, if any, of the Companies Act, 2013 read with the light of the further progress of the Company which revision the Rules made thereunder (including any statutory modifications or should be in conformity with any amendments to the relevant re-enactment thereof for the time being in force), the consent of the provisions of the Act and /or the rules and regulations made there Company be and is hereby accorded to the Board of Directors of the under and/or such guidelines as may be announced by the Central Company or a committee of Directors authorised by the Board in this Government from time to time. behalf for creating such mortgage and/or charge of all the immovable and movable properties of the Company where so ever situated, RESOLVED FURHTER THAT the Board of Directors be and are present and future and the whole of the undertaking of the Company hereby authorised to do all such acts, deeds and things as may be in favour of IDBI Bank Limited and / or Punjab National Bank, acting considered necessary to give effect to the aforesaid resolution.” for itself and as an agent of Banks / Financial Institutions to secure: 6. To consider and, if thought fit, to pass with or without a) Term Loan of ` 2500 lakh (Rupees Two thousand five hundred modification(s), the following resolution as an Ordinary lakh only) lent and advanced by Canara Bank (CB) to the Resolution: Company. “RESOLVED THAT pursuant to the provisions of Section 148 and b) Term Loan of ` 2500 lakh (Rupees Two thousand five hundred such other applicable provisions, if any, of the Companies Act, lakh only) lent and advanced by Export – Import Bank of India 2013, (the Act) and the Companies (Audit and Auditors) Rules, 2014, (EXIM) to the Company. including any statutory modification or any amendment or any c) The Working Capital Limits including CEL Limits for forward substitution or re-enactment thereof for the time being in force, cover of ` 231332 lakh, secured on Second Charge basis, lent the Cost Auditor M/s R J Goel & Co. (a Cost Audit firm FRN:000026) and advanced/agreed to be lent and advanced by State Bank of appointed by the Board of directors of the Company to conduct the India, Punjab National Bank, IDBI Bank Ltd., Canara Bank, HDFC audit of its cost records for the financial year ending 31st March, ` Bank Limited, Bank of Baroda, DCB Bank Limited and Union 2020 at a remuneration of 5,00,000 (Rupees Five lakh only) be and Bank of India to the Company, is hereby ratified.” together with interest thereon at the respective agreed rates, “RESOLVED FURTHER THAT the Board be and is hereby authorised to interest tax, compound interest, additional interest, liquidated be and is hereby ratified do all such acts, deeds, matters, things and damages, commitment charges, premia on prepayment or take all such steps as may be necessary desirable or expedient to on redemption, costs, charges, expenses and other monies give effect to this resolution.” payable by the Company to State Bank of India, Punjab National 7. To consider and, if thought fit, to pass with or without Bank, IDBI Bank Ltd., Canara Bank, HDFC Bank Limited, Bank modification(s), the following resolution as a Special of Baroda, DCB Bank Limited, Union Bank of India and Export Resolution: Import Bank of India under Loan Agreements entered into/to be RESOLVED THAT in accordance with the provisions of Section entered into by the Company in respect of the aforesaid loans. 149, 150 , 152, 160 and Schedule IV and such other applicable RESOLVED FURTHER THAT the Board of Directors of the Company provisions, if any, of the Companies Act, 2013, (the Act) and the or a Committee of Directors authorised by the Board in this behalf Companies (Appointment and Qualification of Directors) Rules, 2014 be and is hereby authorised to finalise all agreement(s) for creating including any statutory modification or any amendment or any mortgage and/or charge as aforesaid and to do all such acts, deeds substitution or re-enactment thereof for the time being in force and matter as may be necessary or expedient for giving effect to the read with Securities Exchange Board of India (Listing Obligations above resolution.” and Disclosure Requirements) Regulations, 2015 Sh. Krishan Kumar Narula (DIN – 00098124), aged 80 years, who was appointed as an 5. To consider and, if thought fit, to pass with or without Independent Director upto 4th September, 2019, being eligible, be modification(s), the following resolution as an Ordinary and is hereby re-appointed as Non-executive; Independent Director Resolution: not liable to retire by rotation and to hold office foe a second term of “RESOLVED THAT in accordance with the provisions of Section three consecutive years w.e.f 5th September, 2019 to 4th September, 2022 on the Board of the Company.

46th AGM Notice 1 SURYA ROSHNI LIMITED

RESOLVED FURHTER THAT the Board of Directors be and are RESOLVED THAT in accordance with the provisions of Section hereby authorised to do all such acts, deeds and things as may be 149, 150 , 152, 160 and Schedule IV and such other applicable considered necessary to give effect to the aforesaid resolution.” provisions, if any, of the Companies Act, 2013, (the Act) and the 8. To consider and, if thought fit, to pass with or without Companies (Appointment and Qualification of Directors) Rules, 2014 modification(s), the following resolution as a Special including any statutory modification or any amendment or any Resolution : substitution or re-enactment thereof for the time being in force RESOLVED THAT in accordance with the provisions of Section read with Securities Exchange Board of India (Listing Obligations 149, 150 , 152, 160 and Schedule IV and such other applicable and Disclosure Requirements) Regulations, 2015 Sh. Surendra provisions, if any, of the Companies Act, 2013, (the Act) and the Singh Khurana having (DIN – 02126149) who was appointed as an Companies (Appointment and Qualification of Directors) Rules, 2014 Independent Director upto 4th Spetember, 2019, being eligible, be including any statutory modification or any amendment or any and is hereby re-appointed as Non-executive; Independent Director substitution or re-enactment thereof for the time being in force not liable to retire by rotation and to hold office foe a second term of read with Securities Exchange Board of India (Listing Obligations and five consecutive years w.e.f 5th September, 2019 to 4th September, Disclosure Requirements) Regulations, 2015 Sh. Ravinder Kumar 2024 on the Board of the Company. Narang (DIN – 02318041), aged 80 years who was appointed as an RESOLVED FURHTER THAT the Board of Directors be and are Independent Director upto 4th September, 2019, being eligible, be hereby authorised to do all such acts, deeds and things as may be and is hereby re-appointed as Non-executive; Independent Director considered necessary to give effect to the aforesaid resolution.” not liable to retire by rotation and to hold office foe a second term of three consecutive years w.e.f 5th September, 2019 to 4th September, 12. To consider and, if thought fit, to pass with or without 2022 on the Board of the Company. modification(s), the following resolution as aSpecial Resolution RESOLVED FURHTER THAT the Board of Directors be and are “RESOLVED THAT pursuant to the provisions of Section 4 & 13 hereby authorised to do all such acts, deeds and things as may be and other applicable provisions, if any, of the Companies Act, 2013 considered necessary to give effect to the aforesaid resolution.” read with the Companies (Incorporation) Rules, 2014, including 9. To consider and, if thought fit, to pass with or without any statutory modification or re-enactment thereof, for the time modification(s), the following resolution as a Special being in force, and subject to the necessary approval of the Central Resolution: Government or any other statutory authority(ies), if any required in this RESOLVED THAT in accordance with the provisions of Section behalf, the consent of the members be and be and is hereby accorded 149, 150 , 152, 160 and Schedule IV and such other applicable for effecting the following alterations in the existing Memorandum of provisions, if any, of the Companies Act, 2013, (the Act) and the Association (the “MOA”) of the Company by substitution/deletion of Companies (Appointment and Qualification of Directors) Rules, 2014 certain clauses in the following manner:- including any statutory modification or any amendment or any substitution or re-enactment thereof for the time being in force i. Sub-heading III(A) “THE MAIN OBJECT TO BE PURSUED read with Securities Exchange Board of India (Listing Obligations BY THE COMPANY ON ITS INCORPORATION ARE” be and Disclosure Requirements) Regulations, 2015 including any substituted by the new sub-heading “THE OBJECTS TO BE statutory modification or any amendment or any substitution or PURSUED BY THE COMPANY ON ITS INCORPORATION re-enactment thereof for the time being in force Sh. Tara Sankar ARE”. Sudhir Bhattacharya (DIN – 00157305) aged 71 years who was ii. Sub-heading III(B) “OBJECTS INCIDENTAL OR appointed as an Independent Director upto 4th September, 2019, ANCILLARY TO THE ATTAINMENT OF THE MAIN being eligible, be and is hereby re-appointed as Non-executive; OBJECTS are” be substituted by the new sub-heading Independent Director not liable to retire by rotation nd to hold office “MATTERS WHICH ARE NECESSARY FOR FURTHERANCE foe a second term of five consecutive years w.e.f 5th September, OF THE OBJECTS SPECIFIED IN CLAUSE III(A)”. 2019 to 4th September, 2024 on the Board of the Company for the Second term. iii. Under sub-clause 3A, 10A and 19 of Clause III(B)”, the words “Companies Act, 1956” be substituted with the RESOLVED FURHTER THAT the Board of Directors be and are words “the Companies Act, 2013”. hereby authorised to do all such acts, deeds and things as may be considered necessary to give effect to the aforesaid resolution.” iv. Under sub-clause 13 of Clause III(B)”, the words “subject to Section 76 of the Companies Act, 1956” be substituted 10. To consider and, if thought fit, to pass with or without with the words “subject to provisions of the Companies modification(s), the following resolution as a Special Resolution: Act, 2013”. RESOLVED THAT in accordance with the provisions of Section v. The existing Clause III(C) comprising sub clauses 1 to 4 149, 150 , 152, 160 and Schedule IV and such other applicable be and is hereby deleted permanently. provisions, if any, of the Companies Act, 2013, (the Act) and the vi. The existing Liability Clause i.e. Clause (IV) shall be Companies (Appointment and Qualification of Directors) Rules, 2014 substituted by the following including any statutory modification or any amendment or any “IV. The Liability of members is limited and this liability is limited to substitution or re-enactment thereof for the time being in force the amount unpaid, if any, on the shares held by them.” read with Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 Sh. Sudhanshu Kumar “RESOLVED FURTHER THAT the Board of Directors of the Company Awasthi (DIN – 02162923) aged 74 years who was appointed as an (hereinafter referred to as the “Board”, which term shall deem to include Independent Director upto 4th September, 2019, being eligible, be any of its duly constituted Committee) or any officer/executive/ and is hereby re-appointed as Non-executive; Independent Director representative and/or any other person so authorised by the Board, not liable to retire by rotation and to hold office foe a second term of be hereby authorised on behalf of the Company to do all such acts, three consecutive years w.e.f 5th September, 2019 to 4th September, deeds, matters and things as it may, in its absolute discretion, deem 2022 on the Board of the Company. necessary, to settle any questions, difficulties or doubts that may RESOLVED FURHTER THAT the Board of Directors be and are arise in this regard and accede to such modifications and alterations hereby authorised to do all such acts, deeds and things as may be to the aforesaid resolution as may be suggested by the Registrar of considered necessary to give effect to the aforesaid resolution.” Companies or such other authority arising from or incidental to the 11. To consider and, if thought fit, to pass with or without said amendment without requiring the Board to secure any further modification(s), the following resolution as a Special consent or approval of the members of the Company.” Resolution: By order of the Board

Registered Office: Prakash Nagar, Sankhol, Bahadurgarh – 124 507 (Haryana) B. B. Singal Dated: 02nd August, 2019 Sr. V.P & Company Secretary

2 46th AGM Notice SURYA ROSHNI LIMITED NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THIS iii) Launch internet browser by typing the following ANNUAL GENERAL MEETING MAY APPOINT A PROXY TO URL : https://www.evoting.nsdl.com/ ATTEND AND VOTE ON A POLL ON HIS BEHALF. A PROXY NEED NOT BE A MEMBER OF THE COMPANY. iv) Click on “Shareholders – Login A person can act as a proxy on behalf of members not v) Put User ID and Password as initial password exceeding fifty and holding in the aggregate not more than noted in step (i) above. Click Login. ten percent of the total share capital of the Company carrying vi) Password change menu appears. Change the voting rights. A member holding more than ten percent of password with new password of your choice with the total share capital of the Company carrying voting rights minimum 8 digits/ characters or combination may appoint a single person as proxy and such person shall thereof. Note New Password. It is strongly not act as a proxy for any other person or shareholder. recommended not to share your password with Proxies, in order to be effective, must be received at 2nd floor, any other person and take utmost care to keep your Padma Tower-I, 5 Rajendra Place, New Delhi – 110 008 or at password confidential. Registered Office, not less than forty-eight hours before the commencement of this Annual General Meeting i.e. before vii) Home page of remote e-voting opens. Click on 11.00 a.m. on 2nd September, 2019. Proxies submitted on remote e-voting Active Voting Cycles. behalf of the companies, societies etc., must be supported by viii) Select “EVEN” (e-voting event number) of “Surya an appropriate resolution/authority, as applicable. Roshni Limited”.

In case of joint holders attending the meeting, only such ix) Now, you are ready for remote e-voting as Cast joint holder who is higher in the order of the names as per Vote page opens. the Register of Members of the Company will been entitled to vote. x) After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box Members/ Proxies / Authorised Representatives should will be displayed. If you wish to confirm your vote, bring the Attendance slip duly filled in for attending the click on “CONFIRM”, else to change your vote, meeting. click on “BACK” and accordingly modify your 2. In terms of the provisions of Section 108 of the Companies vote. Act, 2013 (the Act) read with Rule 20 of the Companies xi) Upon confirmation, the message “Vote cast (Management and Administration) Rules, 2014 (the Rules), successfully” will be displayed. as amended and Regulation 44 of SEBI ( Listing Obligations and Disclosure Requirements) Regulations 2015, the xii) Once you “CONFIRM” your vote on the resolution, Company is providing its members facility to exercise their you will not be allowed to modify your vote. right to vote on the Items of Business given in the AGM Notice dated 2nd August, 2019 proposed to be passed in xiii) You can also take out print of the voting done by the Annual General Meeting (“meeting”) of the Company you by clicking on “click here to print” option on scheduled to be held on Wednesday, 4th September, 2019 the voting page. at the Registered office of the Company Prakash Nagar xiv) Iinstitutional shareholders (i.e. other than Sankhol, Bahadurgarh -124507 (Haryana). The members Individuals, HUF, NRI etc.) are required to send a may cast their votes using an electronic voting system scanned copy (PDF /JPG Format) of the Board from a place other than the venue of the meeting (remote Resolution /Authority Letter / Power of Attorney e-voting). The Company has engaged National Securities (POA) etc. together with attested specimen Depository Limited (NSDL) to provide e-voting platform signature of the authorised signatory(ies) who to members. The process of remote e-voting shall be as are authorised to vote, to the Scrutiniser through follows : e-mail to [email protected] with a copy marked (A) In case of members receiving e-mail (For those to [email protected] members whose e-mail addresses are registered with (B) In case of members receiving the physical copy the Company) of Notice of AGM (for members whose e-mail IDs i) Open email and open attached PDF file “e-Voting. are not registered with the Company / depository pdf” giving your Client ID (in case you are holding participant(s) or requesting physical copy). shares in demat mode) or Folio No. (In case you a) Initial Password is provided in the box are holding shares in physical mode) as password, which contains your “USER ID” and “Password b) Please follow all steps from sl. no. (ii) to sl. no. for e-voting”. Please note that the password is an (xiv) above to cast vote. initial password. You will not receive this PDF file if General Instructions: you are already registered with NSDL for e-voting. a) The remote e-voting period begins on Friday, ii) If you are holding shares in demat form and had 30th August, 2019 at 9.00 a.m (IST) and ends logged on to www.evoting.nsdl.com and voted on Tuesday, 3rd September, 2019 at 5.00 p.m on an earlier voting of any company, then your (IST). During this period shareholders’ of the existing password is to be used. If you forget your Company, holding shares either in physical form password, you can reset your password by using or in dematerialised form, as on the cut-off date “Forgot User Details / Password ?” or “Physical (record date) of 28th August, 2019, may cast their User Reset Password ?” option available on www. vote electronically. The remote e-voting module evoting.nsdl.com or contact NSDL at toll free No. shall be disabled by NSDL for voting thereafter. 1800-222-990

46th AGM Notice 3 SURYA ROSHNI LIMITED

b) A person, whose name appears in the register of are listed. The resolutions will be deemed to be Members / Beneficial owners as on cut-off date passed on the date of AGM subject to receipt i.e. 28th August, 2019, only shall be entitled to of the requisite number of votes in favour of the avail the facility of remote e-voting as well as resolutions. voting at the meeting. Important Note: c) Any person who becomes members of the As Surya Roshni Limited, being a listed Company and Company after dispatch of the Notice of the having more than 1000 shareholders, is compulsorily meeting and holding shares as on the cut–off required to provide e-voting facility to members in date i.e. 28th August, 2019, may obtain the terms of Section 108 of the Act read with Rule 20 login ID and password by sending a request at of Companies (Management and Administration) [email protected] or to the Company Registrar Amendment Rules, 2015 and regulation 44 of SEBI - MAS Services Limited at [email protected]. If (Listing Obligations and Disclosure Requirements) the member is already registered with NSDL than Regulations, 2015, voting by show of hands will not be he can use his/her existing user ID and password available to the members at the 46th Annual General to cast the vote through remote e-voting. Meeting in view of the further provisions of Section d) In case you have any queries or issues regarding 107 read with Section 114 of the Act. remote e-voting, you may refer the Frequently 3. A statement pursuant to Section 102(1) of the Companies Asked Questions (“FAQs”) and remote e-voting Act, 2013, in respect of item no. 4 to 12 are annexed hereto. manual available at www.evoting.nsdl.com or call on toll free no. 1800-222-990. 4. The Record date for taking into account the list of shareholders for dividend entitlement is 28.08.2019.The e) The voting rights of shareholders shall be in dividend on Equity Shares, if declared at the Annual General proportion to their shares of the paid-up equity Meeting, will be payable to those shareholders whose names share capital of the Company as on the cut-off appear on the Company’s register of members on 28th date of 28th August, 2019, August, 2019. In respect of shares held in dematerialised f) Members can also download the notice of the form, the dividend shall be payable on the basis of beneficial meeting at www.surya.co.in for exercising their ownership as on 28th August, 2019, as per the details e-voting rights. furnished by National Securities Depository Ltd./ Central Depository Services (India) Ltd. for the purpose, as on that g) Members who have cast their vote through date. remote e-voting prior to the meeting may attend the meeting but shall not be allowed to cast their 5. Relevant documents referred to in the Notice or in the vote again. accompanying Statement are open for inspection to the h) The Board of Directors has appointed SGS Members at the registered office of the Company during Associates (Company Secretaries Firm) 14, First business hours on all working days up to the date of Annual floor, Rani Jhansi Road, New Delhi – 110055 as General Meeting. Scrutiniser for conducting the e-voting process. 6. Pursuant to the provisions of Section 124(5) and (6) of the i) At the end of the Annual General Meeting voting Companies Act, 2013, Ministry of Corporate Affairs (MCA) exercise, Scrutiniser will download the entire voting vide notification dated February 28, 2017 and 16th October, data using its scrutiniser login. 2017 has notified Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules j) The Scrutiniser will submit his final report after the 2017 (‘IEPF Rules’) and inter-alia specified the manner conclusion of voting at the Annual General Meeting for transfer of Unclaimed Dividend along with the shares, but not later than closing of the business hours on in respect of which dividend is unpaid or unclaimed for a 5th September, 2019. period of seven years, to Investor Education and Protection k) The Chairman of the meeting shall announce Fund (IEPF) established by the Central Government. During the result of voting on the resolutions taken up the year, the Company has transferred 15,778 equity shares at the 46th Annual General Meeting on or after to IEPF Account as tabulated below in respect of which submission of final report by the Scrutiniser. dividend stands unclaimed for a continuous period of seven years starting from F.Y - 2010-11 onwards. l) The results along with the Scrutiniser’s Report, will be placed on the Company’s website at www. Disclosure with respect to transfer of shares to IEPF account surya.co.in and the website of NSDL immediately as per the provisions of section 124(6) of the Companies after the result is declared. The results shall Act, 2013 read with the Investor Education and Protection simultaneously be communicated to the Stock Fund Authority (Accounting, Audit, Transfer and Refund) Exchange where the securities of the Company Rules, 2016 .

Outstanding Total No. of Total No. Total No. of Shares in Shareholders of Shares Shareholders Total No. of IEPF demat whose shares transferred who approached Shareholders suspense are transferred to IEPF the Company for No. of Shares Outstanding Shares at the account at to IEPF demat account transfer of shares Transferred from in demat account Voting beginning of the beginning account during during the from IEPF account IEPF Account lying at the end of Rights Year the year of the year the year year during the year during the year the year. Frozen 2010-11 1329 1,49,513 152 15,778 5 218 1,65,073 Yes Total 1329 1,49,513 152 15,778 5 218 1,65,073 The Company has uploaded full details of such shareholders and shares transferred to IEPF Account on its website www.surya.co.in. Any future dividend / benefits, if any, in respect of shares so transferred shall also be credited to the IEPF Fund. After the shares are transferred to the IEPF Account, the claimant can claim those shares in accordance with the procedure and on submission of necessary forms and documents to the IEPF Authority.

4 46th AGM Notice SURYA ROSHNI LIMITED

7. Pursuant to the provisions of Section 125 of the Companies Act, with the Company by sending a consent letter to Sr. V.P & 2013, dividend, which remains unpaid or unclaimed for a period Company Secretary, Padma Tower – 1, 2nd floor, 5 Rajendra of seven years will be transferred to the Investor Education & Place, New Delhi – 110008 / Registrar and Transfer Agent – Protection Fund of the Central Govt. Members who have not MAS Services Limited, T-34, 2nd floor, Okhla Industrial Area, en-cashed their dividend warrant so far for the financial year Phase – II, New Delhi -110020. ended 31st March, 2012, or any subsequent financial year(s), 10. Pursuant to SEBI Circular SEBI/HO/MIRSD/DOP1/ the details of which are available at the following link. http:// CIR/P/2018/73 dated April 20, 2018 in regard to www.surya.co.in/wp-content/uploads/2016/04/IEPF- Strengthening the guidelines and Raising Industry Standards Report-28.09.2018.pdf are requested to address their claim for RTA, Issuer Companies and Bankers to an Issue, the with supporting documents to Registrar & Transfer Agent - provision has been made with regard to payment of Dividend MAS Services Limited (Unit Surya Roshni Limited) T- 34, 2nd through electronic channels. Members who have not yet floor, Okhla Industrial Area, Phase II, New Delhi – 110 020 or registered their Bank Details / Change in Bank Account to the Company at 2nd floor, Padma Tower-I, 5 Rajendra Place, Details, are requested to submit the bank details along with New Delhi - 110 008. the cancelled cheque which bears the name of the securities 8. Pursuant to Regulation 39(4) read with Schedule VI of SEBI holder either with the Company Registrar and Transfer Agent (Listing Obligations and Disclosure Requirement) Regulations – MAS Services Limited, T-34, 2nd floor, Okhla Industrial 2015, and in compliance with the provisions of Section Area, Phase – II, New Delhi -110020 or with their concerned 124(5) and (6) of the Companies Act, 2013 read with Investor depository (if shares are held in demat form). Education and Protection Fund Authority (Accounting, Audit, 11. Registers under Section 170 and 189 of the Companies Transfer and Refund) Rules 2017 (‘IEPF Rules’) the Company Act, 2013 will be available for inspection at the AGM of the out of unclaimed equity shares of 12 shareholders comprising Company. 1599 equity shares lying in the escrow account titled “Surya Roshni Limited – Unclaimed Suspense Account” maintained 12. Information provided as per Regulation 36(3) of SEBI (Listing with National Securities Depository Limited has transferred Obligations and Disclosure Requirements) Regulations, shares of 2 shareholders comprising 191 equity shares to IEPF 2015 referred to as the “Listing Regulations”. Authority Account and balance 10 shareholders comprising Smt. Urmil Agarwal (DIN -00053809) aged about 63 years, 1408 equity shares stands in the Unclaimed suspense account is the director of the Company since December, 2016 and as on 31st March, 2019. No shareholders whose shares are has sound business acumen & understanding of both the lying in the above mentioned escrow unclaimed suspense businesses of the Company. She holds directorship in account have claimed their shares during the Financial Year Pankaj Investments Limited. She is not having any inter-se 2018-19. Members who have not claimed their shares lying in relationship with other Directors of the Company except Shri Unclaimed Suspense Account are requested to address their Jai Prakash Agarwal (Executive Chairman of the Company) claim with supporting documents to Registrar & Transfer Agent and Shri Vinay Surya (Whole-time Director) being as a - MAS Services Limited (Unit Surya Roshni Limited) T- 34, 2nd spouse and son respectively. Further, she holds 2,10,431 floor, Okhla Industrial Area, Phase II, New Delhi – 110 020 or to equity shares in the Company. Smt. Urmil Agarwal is not the Company at 2nd floor, Padma Tower-I, 5 Rajendra Place, debarred from re-appointment by any order of SEBI or any New Delhi - 110 008. other authority. 9. In compliance to Section 20 of the Companies Act, 2013 13. The route map showing directions to reach the venue of the & SEBI (Listing Obligations and Disclosure Requirements) AGM is annexed and forms part of this Notice. Regulation 2015, Ministry of Corporate Affairs permits service of documents by electronic mode to members / 14. The details in regard to other directors who are proposed to shareholders. Members holding shares in physical form be re-appointed during the year are provided in their item and wish to avail this service register their e-mail address no(s) of the explanatory statement as furnished below:

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 (“the Act”)

ITEM NO. 4 the financial assistance together with interest thereon at The Company has availed / been sanctioned the Term Loans from the respective agreed rates, interest tax, compound interest, Canara Bank and Export – Import Bank of India and the revised additional interest, liquidated damages, commitment working capital limits from consortium Banks i.e. State Bank of India, charges, premia on prepayment or on redemption, costs, Punjab National Bank, IDBI Bank Ltd., Canara Bank, HDFC Bank charges, expenses and other monies payable by the Limited, Bank of Baroda, DCB Bank Limited and Union Bank of India Company to State Bank of India, Punjab National Bank, for its Steel Pipes & Strips and Lighting Segments. The details are IDBI Bank Ltd, Canara Bank, HDFC Bank Limited, Bank of as under: Baroda, DCB Bank Limited, Union Bank of India and Export Import Bank of India under Loan Agreements entered into/to a) Term Loan of ` 2500 lakh (Rupees Two thousand five be entered into by the Company in respect of the aforesaid hundred lakh only) lent and advanced by Canara Bank (CBC) loans have to be secured by a joint mortgage of all the to the Company. immovable and movable properties of the Company, present b) Term Loan of ` 2500 lakh (Rupees Two thousand five and future. hundred lakh only) lent and advanced by Export – Import Section 180(1)(a) of the Companies Act, 2013 provides inter Bank of India (EXIM) to the Company. alia that the Board of Directors of a Public Company shall not, c) The Working Capital Limits including CEL Limits for forward without the consent of shareholders of such Public Company in cover of ` 231332 lakhs, secured on Second Charge basis, General Meeting, sell, lease or otherwise dispose of the whole lent and advanced/agreed to be lent and advanced by State or substantially the whole of the undertaking of the Company, Bank of India, Punjab National Bank, IDBI Bank Ltd., Canara or where the Company owns more than one undertaking, of the Bank, HDFC Bank Limited, Bank of Baroda, DCB Bank Limited whole or substantially the whole of any such undertaking. Since and Union Bank of India to the Company,

46th AGM Notice 5 SURYA ROSHNI LIMITED the mortgage by the Company of its immovable and movable PART-A properties as aforesaid in favour of the Lenders may be regarded 1. Medical Reimbursement : Expenses incurred for self and as disposal of the Company’s properties/undertakings, it is family subject to a ceiling of one necessary for the members to pass a Special Resolution under month’s salary per year or three Section 180(1)(a) of the Companies Act, 2013, before creation of month’s salary in a period of three the said mortgage/charge. years. The Board of Directors recommends the resolution(s) as set out 2. Leave Travel Concession : For self and family once in a year in item No.4 for the approval of the shareholders as a Special incurred with the rules specified Resolution. by the Company. Copy of the Loan Agreement(s) to be executed between the 3. Club Fees : Fees of clubs subject to a Company and Lenders and copies of the relevant documents / maximum of two clubs. Admission correspondence between the said Lenders and the Company are and life membership fees shall open for inspection at the Registered Office of the Company during not be allowed. business hours on any working day prior to the date of meeting. 4. Personal Accident : Premium not to exceed ` 4000/- Insurance per month. None of the Directors, Key Managerial Personnel or relatives of Directors or Key Managerial personnel have any interest financial PART-B or otherwise in the said resolution. The following perquisites shall not be included in the computation ITEM NO. 5 of the ceiling on remuneration specified in Paragraph I of Section IV of part II of Schedule V of the Companies Act, 2013. The Shareholders of the Company at the Annual General Meeting held on 05.09.2014 had approved the appointment of Shri Raju Bista 1. Contribution to provident fund to the extent this is not as Managing Director for a period of 5 years. taxable under the income Tax Act. 2. Gratuity payable shall not exceed a half month’s salary for The Shareholders are aware that since Shri Raju Bista assumed each completed year of service. the office of Managing Director of the Company, the Company has made all-round progress. The Company rather owes its 3. Encashment of leave at the end of the tenure. present stature and position to his guidance and foresight. His PART-C unshakable determination along with a vast experience has The Company shall provide a car with driver and telephone facility helped the Company scale new heights year after the other. Under at the residence of the Managing Director. Provision of car with the management control and guidance Shri Raju Bista, Managing driver for use of Company’s business and telephone facility at Director, the Company has consistently maintained growth in sales and profitability. the residence will not be considered as perquisites. Personal long distance calls on telephone and use of car for private purpose Furthermore, on the recommendation of Nomination and shall be billed by the Company on the Managing Director. Remuneration Committee and subject to the approval of the Members at the Annual General Meeting, the Board of Directors The aforesaid remuneration shall be subject to the limit of 5% in their meeting held on 14th November, 2018 approved the re- of the net profits as laid down under sub-section (1) of section appointment of Shri Raju Bista, as Managing Director for a period 197 of the Companies Act, 2013. of five years w.e.f. 14th November, 2018 to 13th November, 2023 on the remuneration and terms and conditions, as set out in If the Company has no profits or the profits are inadequate the Agreement executed on 17th November, 2018 and as stated in any financial year during the terms of his office asthe below by suppressing the earlier Principal Agreement dated 30th Managing Director, Sh. Raju Bista will be entitled to receive the May, 2014 along with all subsequent supplementary Agreements above remuneration and perquisites as minimum remuneration, executed time to time between the Company and Shri Raju Bista provided that the total remuneration, of salary, perquisites and related to his earlier tenure of appointment any other allowances shall be paid only in compliance with SALARY : Salary of ` 20.00 lakh per month section II of the Part II of Schedule V of the Companies Act, 2013 w.e.f. 14th November, 2018 with or such other amount and perquisites as/is may be provided in an annual increment of ` 1.00 lakh the said schedule V as may be amended from time to time or per month on 1st April of every any equivalent statutory re-enactment(s) thereof. year. Apart from the aforesaid remuneration, Shri Raju Bista will be COMMISSION : 1% of the Profit before tax (PBT) entitled to reimbursement of expenses incurred in connection of the financial year derived on with the business of the Company. the basis of Audited Financial Statements of the Company No sitting fees will be paid to him for attending the meetings of the and will be due and paid on or Board of Directors of the Company or Committees thereof. after the approval of Audited Financial Statements by the Board The Company has received necessary disclosure of disqualification of Directors of the Company for under Section 164 of the Companies Act, 2013 from Sh. Raju Bista. the concerned financial year per Further he is also not debarred from appointment pursuant to any annum basis for the period served order of SEBI or any other relevant authority. under the agreement. The Board of Directors recommends the resolution(s) as set out PERQUISITES : Perquisites will be allowed in in item No.5 for the approval of the shareholders as an Ordinary addition to salary. For this purpose Resolution. unless the context otherwise requires, perquisites are classified Copy of the agreement dated 17th November, 2018 executed into three categories Parts A, B and between the Company and Shri Raju Bista along with other C and the ceiling shall apply only to relevant documents related to his appointment as Managing Part – A. Director are open for inspection at the Registered office of the

6 46th AGM Notice SURYA ROSHNI LIMITED

Company during business hours on any working day prior to the None of the Directors, Key Managerial Personnel or relatives of date of meeting. Directors or Key Managerial personnel have any interest financial or otherwise in the said resolution. None of the Directors except Sh. Raju Bista (whose interest is only to the extent of appointment and remuneration as Managing ITEM NO. 07 Director), Key Managerial Personnel or relatives of Directors or Shri Krishan Kumar Narula having DIN -00098124 was last Key Managerial personnel have any interest financial or otherwise appointed as Non-Executive Independent Director of the Company in the said resolution. for a period of 5 years from 5th September, 2014 to 4th September, Shri Raju Bista, aged about 33 years, an MBA is the young and 2019 by the Shareholders in the 41st Annual General Meeting dynamic Managing Director of the Company with an overall (AGM) of the Company held on 5th September, 2014. experience of over a decade at Senior Management level. He Subsequently, in view of the amended regulation 17(1A) of has been the growth engine which yielded profitable growth the SEBI (Listing Obligations and Disclosure Requirements) for the Company. Under his dynamic leadership, Company has Regulations, 2015 (“Listing Regulations”), which came into force successfully forayed into the fans and home appliances segment. with effect from 1st April, 2019, members of the Company at the His discipline, dedication, visionary power and relentless efforts 45th Annual General Meeting held on 28th September, 2018 had has helped in achieving the overall development of the Company. approved by Special Resolution continuation of Shri Krishan The journey of Mr. Raju Bista started when he joined Surya Kumar Narula w.e.f 1st April, 2019 onwards as a Non-Executive; Foundation, an NGO to fulfil the deep rooted desire to work for the Independent Director for the remaining period of his first tenure nation, build a better future for each citizen to thrive and guide the even on attaining the age of 75 years or more. youth of our country to reach their full potential. He was identified Shri Krishan Kumar Narula, aged about 80 years, is an industry as a leader from a very early age and appointed as the director of veteran and has been Director on the board of the Company since the Company in 2009. March 2000. He has 55 years of prolific experience in the field His understanding of the business environment, formulating of Banking and Finance. He is the Chairman of the Company’s effective strategy, team building skill with mutual trust, ability to Audit Committee. He is an Ex- Chief General Manager from mentor the team and his own hard work had not gone unnoticed. SBI Chandigarh (LHO) and is currently working as Banking and His decisive role in the development of the Company both in scale Management Consultant. Under his guidance the Company and product quality was rightly acknowledged and appreciated. has achieved higher growth and emerged today as the leading The board of directors appointed him as the Managing Director of organisation in the Steel Pipes and Lighting Industry. The Board the Company in the year 2012 entrusting him with responsibility has benefitted from his relevant specialisation and expertise. of managing the Company. Details on his attendance of various Board Meetings held during the last financial year are included in the Corporate Governance Considering his deep involvement and association with the Report of the Annual Report. industry, he has become the President of ELCOMA. He is also the Member of Parliament. As per the provisions of Section 149, an independent director can hold office for a term up to 5 (five) consecutive years on the board He is not holding Directorship / Committee Position in any other of a company for two consecutive terms and shall not be included Company except Surya Roshni Limited where he is also a member in the total number of directors for retirement of rotation. Shri of Stakeholder’s Relationship Committee, Corporate Social Krishan Kumar Narula meets the criteria of independence and is Responsibility Committee and Committee of Directors. He has eligible for reappointment for a second term as per the provisions not having any inter-relationship between other Directors of the of the Companies Act, 2013 and the rules made thereunder Company. Further he is not holding any shares of the Company. read with Listing Regulations and he is not debarred from re- ITEM NO. 6 appointment by any order of SEBI or any other authority.

The Board of Directors of the Company, on the recommendation of the Further as per Listing Regulations, no listed entity can continue Audit Committee in their meeting held on 21st May, 2019 approved the directorship of any person as a non-executive director who the appointment of M/s R J Goel & Company (a Cost auditor firm has attained the age of 75 (seventy five) years or reappoint for the having registration No.000026) as Cost Auditors to conduct the Audit second term unless a special resolution is passed to that effect. of the cost records of the Company for the financial year ending 31st Pursuant to Section 149, 150, 152 160 and Schedule IV (Code for March, 2020 at a remuneration of ` 5,00,000/- Independent Directors) of the Companies Act, 2013 , and the Articles In accordance with the provisions of Section 148 of the Companies of Association of the Company and all other relevant provisions Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, and that of Listing Regulations, Board of Directors upon the the remuneration payable to Cost Auditor has to be ratified by the recommendation of the Nomination and Remuneration Committee shareholders of the Company. and based on his exceptional performance evaluation report over the years, in its meeting held on 2nd August,2019 proposed the Accordingly, consent of the members is sought via Ordinary name of Shri Krishan Kumar Narula for re-appointment as a Non- Resolution as set out in Item No. 6 of the Notice for ratification executive Independent Director of the Company for the second term of the remuneration payable to M/s R J Goel & Company (a Cost for a consecutive period of three years from 5th September, 2019 to auditor firm) for the financial year ending 31st March, 2020. 4th September, 2022 not liable to retire by rotation and recommends The Board of Directors recommends the resolution set out in item the same for the approval by the shareholders of the Company as a No.6 for the approval of the shareholders as an Ordinary Resolution. Special Resolution as set out at item no. 7.

Copy of the resolution(s) and relevant documents (if any) are open for Except Shri Krishan Kumar Narula, no other Director(s) and Key inspection at the Registered Office of the Company during business Managerial Personnel of the Company and their relatives is concerned hours on any working day prior to the date of the meeting. or interested, financial or otherwise, in the said Resolution.

46th AGM Notice 7 SURYA ROSHNI LIMITED

Information as per Regulation 36(3) of SEBI (Listing Obligations name of Shri Ravinder Kumar Narang for re-appointment as a Non- and Disclosure Requirements) Regulations, 2015 referred to as executive Independent Director of the Company for the second term the “Listing Regulations” for a consecutive period of three years from 5th September, 2019 to 4th September, 2022 not liable to retire by rotation and recommends Shri. Krishan Kumar Narula, aged about 80 years, an M.Com. from the same for the approval by the shareholders of the Company as a the University of Delhi and also a Certified Associate of Indian Special Resolution as set out at item no.8. Institute of Bankers (CAIIB). He holds Chairmanship of Company’s Audit Committee, Stakeholders Relationship Committee, Nomination Except Shri Ravinder Kumar Narang, no other Director(s) and & Remuneration Committee, Corporate Social Responsibility Key Managerial Personnel of the Company and their relatives is Committee and Committee of Directors. Shri Narula, possess a vast concerned or interested, financial or otherwise, in the said Resolution. experience of over 55 years in the field of Banking and Finance. He Information as per Regulation 36(3) of SEBI (Listing Obligations retired as Chief General Manager from SBI Chandigarh (LHO) and is and Disclosure Requirements) Regulations, 2015 referred to as the providing Banking and Management Consultancy. He has no inter-se “Listing Regulations” relationship with any other director of the Company. Further he is not holding any shares of the Company. Shri Ravinder Kumar Narang, aged about 80 years, is a member in Nomination & Remuneration Committee and Stakeholder’s ITEM NO. 8 Relationship Committee of the Company. He has done B.E (Mech) Shri Ravinder Kumar Narang having DIN -02318041 was last from University of Roorkee. He is a Distinguished Fellow of The Energy appointed as Non-Executive Independent Director of the Company and Resources (TERI) and was full time director in Reliance Petroleum for a period of 5 years from 5th September, 2014 to 4th September, Limited followed by advisor after the merger of Reliance Petroleum 2019 by the Shareholders in the 41st Annual General Meeting (AGM) with Reliance Industries Ltd. He acted as an advisor of established of the Company held on 5th September, 2014. groups for feasibility study and project development in the area of Subsequently, in view of the amended regulation 17(1A) of the SEBI Coal Bed Methane, Refinery, Liquefied Natural Gas (LNG) terminal, (Listing Obligations and Disclosure Requirements) Regulations, 2015 development of marketing network .He was also the Chairman of (“Listing Regulations”) which will come into force with effect from Indian Oil Corporation Limited, Indo-Mobil Limited, Indian Oil Tanking 1st April, 2019, members of the Company at the 45th Annual General and many other established corporates during his service tenure. Meeting held on 28th September, 2018 had approved by Special He has a vast experience of over 56 years in the field of Operations, Resolution continuance of Shri Ravinder Kumar Narang w.e.f 1st Project Development, Marketing Network and other functional areas. April, 2019 onwards as a Non-Executive Independent Director for the He has no inter-se relationship with any other director of the Company remaining period of his first tenure even on attaining the age of 75 .Further, he is not holding any shares of the Company. years or more. ITEM NO. 9 Shri Ravinder Kumar Narang, aged about 80 years, has been Director Shri Tara Sankar Sudhir Bhattacharya having DIN -00157305 was last on the Board of the Company since 2009. He is also a member of the appointed as Non-Executive; Independent Director of the Company Stakeholder’s Relationship Committee and Remuneration Committee for a period of 5 years from 5th September, 2014 to 4th September, in the Company. He is an Ex-Chairman of IOCL with vast experience in 2019 by the Shareholders in the 41st Annual General Meeting (AGM) the field of Operations, Project Development and marketing Network. of the Company held on 5th September, 2014. Under his guidance the Company has achieved new heights and emerged as the leading organisation in the Steel Pipes and Lighting Shri Tara Sankar Sudhir Bhattacharya, aged about 71 years has been Industry. The Board has benefitted from his relevant specialisation the Director of the Board of the Company from 2011 onwards. He is and expertise. Details on his attendance of various Board Meetings also a member of the Audit Committee in the Company. He retired as held during the last financial year are included in the Corporate a Managing Director from State Bank of India and carries with him a Governance Report of the Annual Report. vast experience of over 46 years. He also worked with Saha Institute of Nuclear Physics, an affiliate of Tata Institute of Fundamental As per the provisions of Section 149, an independent director can hold office for a term up to 5 (five) consecutive years on the board Research. Further he is also holding Associateship of Indian Institute of a company for two consecutive terms and shall not be included of Bankers. The Board has benefitted from his relevant specialisation in the total number of directors for retirement of rotation. Shri and expertise. Details on his attendance of various Board Meetings Ravinder Kumar Narang meets the criteria of independence and held during the last financial year are included in the Corporate eligible for reappointment for second term as per the provisions of Governance Report of the Annual Report. the Companies Act, 2013 and the rules made thereunder read with As per the provisions of Section 149, an independent director can Listing Regulations and he is not debarred from re-appointment by hold office for a term up to 5 (five) consecutive years on the board of any order of SEBI or any other authority. a company for two consecutive terms and shall not be included in the Further as per Listing Regulations, no listed entity can continue the total number of directors for retirement of rotation. Shri Tara Sankar directorship of any person as a non-executive director who has Sudhir Bhattacharya meets the criteria of independence and eligible attained the age of 75 (seventy five) years or reappoint for the second for reappointment for second term as per the provisions of the term unless a special resolution is passed to that effect. Companies Act, 2013 and the rules made thereunder read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Pursuant to Section 149, 150, 152 160 and Schedule IV (Code for (“Listing Regulations”) and he is not debarred from re-appointment Independent Directors) of the Companies Act, 2013 , and the Articles by any order of SEBI or any other authority. of Association of the Company and all other relevant provisions and that of Listing Regulations, Board of Directors upon the Further as per Listing Regulations, no listed entity can continue the recommendation of the Nomination and Remuneration Committee directorship of any person as a non-executive director who has attained and based on his exceptional performance evaluation report over the age of 75 (seventy five) years or reappoint for the second term of five the years, in its meeting held on 2nd August, 2019 proposed the consecutive years unless a special resolution is passed to that effect.

8 46th AGM Notice SURYA ROSHNI LIMITED

Pursuant to Section 149, 150, 152 160 and Schedule IV (Code for Pursuant to Section 149, 150, 152 160 and Schedule IV (Code for Independent Directors) of the Companies Act, 2013 , and the Articles Independent Directors) of the Companies Act, 2013 , and the Articles of Association of the Company and all other relevant provisions of Association of the Company and all other relevant provisions and that of Listing Regulations, Board of Directors upon the and that of Listing Regulations, Board of Directors upon the recommendation of the Nomination and Remuneration Committee recommendation of the Nomination and Remuneration Committee and based on his exceptional performance evaluation report over the and based on his remarkable performance evaluation report over the years, in its Meeting held on 2nd August,2019 proposed the name of years, in its meeting held on 2nd August,2019 proposed the name Shri Tara Sankar Sudhir Bhattacharya for re-appointment as a Non- of Shri Sudhanshu Kumar Awasthi, for re-appointment as a Non- executive Independent Director of the Company for the second term executive Independent Director of the Company for the second term for a consecutive period of five years from 5th September, 2019 to for a consecutive period of three years from 5th September, 2019 to 4th September, 2024 not liable to retire by rotation and recommends 4th September, 2022 not liable to retire by rotation and recommends the same for the approval by the shareholders of the Company as a the same for the approval by the shareholders of the Company as a Special Resolution as set out at item no.9. Special Resolution as set out at item no.10. Except Shri Tara Sankar Sudhir Bhattacharya, no other Director(s) Except Shri Sudhanshu Kumar Awasthi, no other Director(s) and and Key Managerial Personnel of the Company and their relatives is Key Managerial Personnel of the Company and their relatives is concerned or interested, financial or otherwise, in the said Resolution. concerned or interested, financial or otherwise, in the said Resolution. Information as per Regulation 36(3) of SEBI (Listing Obligations Information as per Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 referred to as the and Disclosure Requirements) Regulations, 2015 referred to as the “Listing Regulations” “Listing Regulations” Shri Tara Sankar Sudhir Bhattacharya, aged about 71 years besides Shri Sudhanshu Kumar Awasthi (DIN- 02162923) aged about 74 holding directorship in the Company also holds directorship in Jindal years, a P.G Diploma in Bank Management from National Pune Stainless Limited, Nandan Denim Limited, Uflex Limited, Arshiya Institute of Bank Management (NBIM) and Post-Graduation Limited .Sharven Consultancy Private Limited, IDFC Projects Limited in Business Administration from Lucknow and also a certified and Bajaj Energy Limited. He also holds membership of Audit Associate of Indian Institute of Bankers Mumbai is an independent Committee in Surya Roshni Limited, Jindal Stainless Limited, Nandan director of the Company from September, 2014. He carried with him Denim Limited, Uflex Limited, .Arshiya Limited and Nomination & a vast experience of 54 years and was retired as Ex-General Manager Remuneration Committee in Jindal Stainless Limited and Nandan of Punjab National Bank and also served as Managing Director in Denim Limited and also holds membership of Corporate Social PNB Capital services Limited. As a Senior most General Manager Responsibility Committee in Arshiya Limited. Sh. T S Bhattacharya of PNB Core Management team he headed functions such as retired as a Managing Director from State Bank of India carried with Human Resources, Information Technology, Credit, Treasury, Internal him a vast experience of 46 years. Shri T S Bhattacharya is a Master Audit, Priority Sector, Management Advisory Services. During his of Science in Nuclear Physics and holds Post Graduate Diploma in experience with the bank, he was closely involved with initiatives like Management Science from Jamnalal Bajaj Institute of Management, Restructuring, Technology up gradation, Public offering, Management Mumbai. Further he is also holding Associateship of Indian Institute of Debt insurance besides managing the business and growth issues of Bankers. He has no inter-se relationship with any director of the on regular basis. Shri Awasthi was also a member of working groups Company. He has no inter-se relationship with any other director of set up by Indian Banks’ Association, Reserve Bank of India including the Company Further, he is not holding any shares of the Company. working groups on Cheque Transaction and e-Cheques constituted ITEM NO. 10 by Reserve Bank of India. His keen interest in people took him to many schools and institutions as a guest lecturer on variety of issues related Shri Sudhanshu Kumar Awasthi having DIN -02162923 was last to academic and current affairs. He is not holding directorship in other appointed as Non-Executive Independent Director of the Company Company except Surya Roshni Limited Further, he is not holding any for a period of 5 years from 5th September, 2014 to 4th September, chairmanship / membership of the Committees in the Company. He 2019 by the Shareholders in the 41st Annual General Meeting (AGM) has no inter-se relationship with any other director of the Company. of the Company held on 5th September, 2014. Further he is not holding any shares of the Company. Shri Sudhanshu Kumar Awasthi, aged about 74 years, has a vast ITEM NO. 11 experience of over 54 years in the field of Banking and Finance. Shri Awasthi retired as General Manager from PNB and is working as a Shri Surendra Singh Khurana having DIN - 02126149 was last Banking and Management Advisor. appointed as Non-Executive; Independent Director of the Company for a period of 5 years from 5th September, 2014 to 4th September, As per the provisions of Section 149, an independent director can 2019 by the Shareholders in the 41st Annual General Meeting (AGM) hold office for a term up to 5 (five) consecutive years on the board of of the Company held on 5th September, 2014. a company for two consecutive terms and shall not be included in the total number of directors for retirement of rotation. Shri Sudhanshu Shri Surendra Singh Khurana, aged about 69 years, is also a member Kumar Awasthi meets the criteria of independence and eligible of the Audit and Nomination & Remuneration Committee in the for reappointment for second term as per the provisions of the Company. He possess has a vast experience of over 43 years in the Companies Act, 2013 and the rules made thereunder read with SEBI field of Administration, and Corporate Management. He is a Fellow (Listing Obligations and Disclosure Requirements) Regulations, 2015 member of the Institute of Engineers, Life member of Institute of Rail (“Listing Regulations”) and he is not debarred from re-appointment Transport, Life Member of AIMA, Senior Member of IEEE/USA, Life by any order of SEBI or any other authority. member of the Institute of Railway Electrical Engineers (IREE) and member of Indian National Academy of Engineers (INAE). He is the Further as per Listing Regulations, no listed entity can continue the Former Chairman, Railway Board and ex-officio Principal Secretary directorship of any person as a non-executive director who has to Government of India attained the age of 75 (seventy five) years or reappoint for the second term unless a special resolution is passed to that effect. As per the provisions of Section 149, an independent director can

46th AGM Notice 9 SURYA ROSHNI LIMITED hold office for a term up to 5 (five) consecutive years on the board Company. Shri Khurana carried with him a bend of 43 years of strong of a company for two consecutive terms and shall not be included in Administrative, Corporate, Managerial and Technical experience in the total number of directors for retirement of rotation. Shri Surendra Indian Railways. Sh. Khurana, served key positions of Indian Railway Singh Khurana meets the criteria of independence and eligible such as Chairman, Railway Board and Ex-officio Principal Secretary for reappointment for second term as per the provisions of the to the Government of India, Shri Khurana is also a Fellow member of Companies Act, 2013 and the rules made thereunder read with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Institute of Engineers, Life member of Institute of Rail Transport, (“Listing Regulations”) and he is not debarred from re-appointment Life Member of AIMA, Senior Member of IEEE/USA, Life member of by any order of SEBI or any other authority. the Institute of Railway Electrical Engineers (IREE) and member of However, in view of the provisions of the Companies Act, 2013 and Indian National Academy of Engineers (INAE). Sh. Surendra Singh the rules made thereunder read with Listing Regulations, company Khurana was also awarded with Life Time Achievement Awards from cannot re-appoint any person as an independent director for the Institution of Engineers, Distinguished Alumnus Award 2009 from IIT second term of five consecutive years unless a special resolution is Roorkee and Eminent Engineers Award from IET/UK. He has no inter- passed to that effect. se relationship with any other director of the Company Further he is Pursuant to Section 149, 150, 152 160 and Schedule IV (Code for not holding any shares of the Company. Independent Directors) of the Companies Act, 2013 , and the Articles ITEM NO. 12 of Association of the Company and all other relevant provisions and that of Listing Regulations, Board of Directors upon the Pursuant to the provisions of Section 4 & 13 and other applicable recommendation of the Nomination and Remuneration Committee provisions, if any, of the Companies Act, 2013 read with the and based on his exceptional performance evaluation report over Companies (Incorporation) Rules, 2014, alterations in the existing the years, in its Meeting held on 2nd August, 2019 proposed the Memorandum of Association (the “MOA”) of the Company by name of Shri Surendra Singh Khurana for appointment as a Non- substitution/deletion of certain clauses as approved by the Board of executive Independent Director of the Company for the second term Directors at their meeting are in conformity with the provisions of for a consecutive period of five years from 5th September, 2019 to 4th September, 2024 not liable to retire by rotation and recommends Companies Act 2013. the same for the approval by the shareholders of the Company as a Adoption / substitution / deletion / alteration of Memorandum of Special Resolution as set out at item no.11. Association of the Company in accordance with the requirement of Except Shri Surendra Singh Khurana, no other Director(s) and Companies Act, 2013 will subject to the approval of the members of Key Managerial Personnel of the Company and their relatives is the Company. The same shall be adopted in substitution of existing concerned or interested, financial or otherwise, in the said Resolution. clauses of Memorandun of Association of the Company Information as per Regulation 36(3) of SEBI (Listing Obligations The Board of Directors recommends the resolution(s) as set out and Disclosure Requirements) Regulations, 2015 referred to as the in item No.12 for the approval of the shareholders as a Special “Listing Regulations” Resolution. Shri Surendra Singh Khurana (DIN- 02126149) aged about 69 years, a Bachelor of Engineering (Mech.) from Roorkee. advance leadership Copy of the Memorandum of Association to be adopted are open for programme from Stern Business School, New York, U.S.A and inspection at the registered office of the Company during business Management Development programme from IIM- Ahmedabad has hours on any working day prior to the date of meeting. been appointed as an independent director of the Company on 5th September, 2014. He is not holding directorship in other Company None of the Directors, Key Managerial Personnel or relatives of except Surya Roshni Limited Further, he holds membership in Audit Directors or Key Managerial personnel have any interest financial or Committee and Nomination & Remuneration Committee of the otherwise in the said resolution.

By order of the Board

Registered Office: Prakash Nagar, Sankhol, Bahadurgarh – 124 507 (Haryana) B. B. Singal Dated: 02nd August, 2019 Sr. V.P & Company Secretary

10 46th AGM Notice  2. For the 1. Members/Proxies are requested tobringtheDULY SIGNEDAttendance SliptotheMeetingandhanditover attheentrance. (If attendingforMember) Name ofProxy ...... No. ofShares held...... Folio/Client ID & DP ID No...... Nagar, Prakash at held being Limited Roshni Surya of Meeting Sankhol, Bahadurgarh –124507(Haryana) onWednesday, General the4thSeptember, 2019. Annual (46th) Sixth Forty the at presence my record hereby I (In BlockLetters) Member’s Name...... ROUTE MAP OFTHEVENUE46THANNUALROUTE MAP GENERALMEETING(AGM) HOLDERSOFSURYA OFEQUITY SHARE ROSHNI

convenience ofMembers,personsotherthanMembers/Proxies WILLNOT BEADMITTED. To Rohtak To Parle limited

By-pass Road Metro Station Metro

Surya RoshniLtd Surya City Park Park City Regd. Office: Website: Corporate IdentityNumber(CIN)–L31501HR1973PLC007543 By-pass Road Phone: +91-1276-241540Fax No.+91-1276-241886

Sankhol Village SURYA ROSHNILIMITED Haryana www.surya.co.in Bahadurgarh PrakashNagar, Sankhol,Bahadurgarh –124507(Haryana) LIMITED AT (HARYANA) BAHADURGARH Metro Station Tikri Border ATTENDANCE SLIP , Email id: Mundka Delhi

[email protected] NH 9 Nangloi ______Signature oftheMember/Proxy Rohtak Road Attendance Slip Metro Station Chowk Peera Garhi 11 SURYA ROSHNI LIMITED Regd. Office: Prakash Nagar, Sankhol, Bahadurgarh – 124507 (Haryana) Corporate Identity Number (CIN) – L31501HR1973PLC007543 Phone: +91-1276- 241540 Fax No. +91-1276-241886 Website: www.surya.co.in, Email id: [email protected]

FORM NO. MGT-11 PROXY FORM (Pursuant to the provisions of Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014)

Name of the Member(s) :...... Registered Address :...... E-mail ID :...... Folio No. / DPID & Client ID:......

I / We being the Member(s) of ______equity shares of ` 10/- each of Surya Roshni Limited hereby appoint:

1. Name :______Address :______E-mail ID :______Signature______or failing him / her 2. Name :______Address :______E-mail ID :______Signature______or failing him / her 3. Name :______Address :______E-mail ID :______Signature______or failing him / her

As my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the forty sixth (46th) Annual General Meeting of the Company, to be held on Wednesday, 4th September, 2019 at Prakash Nagar, Sankhol, Bahadurgarh – 124507 (Haryana) and at any adjournment(s) thereof in respect of the resolutions, as indicated below :

Item Nos. Description of the Resolution ORDINARY BUSINESS 1. Adoption of Audited Financial Statements including Consolidated Financial Statements of the Company for the year ended 31st March, 2019 and the Report of Directors’ and Auditors thereon. 2. Declaration of Equity Dividend.of ` 2/- each on the paid up Share Capital of the Company as at 31st March, 2019 3. Re-Appointment of Smt. Urmil Agarwal (DIN – 00053809) who retires by rotation. SPECIAL BUSINESS 4. Consent for Mortgage of Properties for Working Capital limit u/s 180(1)(a) of the Companies Act, 2013. 5. Approval of Re-appointment and Remuneration of Shri Raju Bista (DIN – 01299297) as Managing Director of the Company for a period of five years as per the provisions of the Companies Act, 2013. 6. Ratification of Remuneration of Cost Auditors M/s R J Goel & Co. for the F.Y – 2019-20, in compliance to the provision of the Companies Act, 2013. 7. Re-Appointment of Shri Krishan Kumar Narula (DIN – 00098124) for Second term as an Independent Director of the Company for the period of three years as per the provisions of the Companies Act, 2013. 8. Re-Appointment of Shri Ravinder Kumar Narang (DIN – 02318041) for Second term as an Independent Director of the Company for the period of three years as per the provisions of the Companies Act, 2013. 9. Re-Appointment of Shri Tara Sanakar Sudhir Bhattacharya (DIN – 00157305) for Second term as an Independent Director of the Company for the period of five years as per the provisions of the Companies Act, 2013. 10. Re-Appointment of Shri Sudhanshu Kumar Awasthi (DIN – 02162923) for Second term as an Independent Director of the Company for the period of three years as per the provisions of the Companies Act, 2013. 11. Re-Appointment of Shri Surendrea Singh Khurana (DIN – 02126149) for Second term as an Independent Director of the Company for the period of five years as per the provisions of the Companies Act, 2013. 12. Approval for Adoption / substitution / deletion / alteration of Memorandum of Association of the Company in substitution of existing Memorandum of Association of the Company as per the provisions of the Companies Act, 2013.

Signed this ______day of ______2019 Affix Re.1/- Signature of the Member(s) : ______Revenue Signature of Proxy holder(s): ______Stamp Stamp Signature of Proxy holder(s): ______Stamp Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the meeting.

12 Proxy Form • MAS SERVICES LIMITED Regd. Office: T-34, 2"d Floor, Okhla Ind!. Area, Ph-II, New Delhi - 110 020 PHONE:- 011-26387281, 82 & 83, FAX:- 011 - 26387384 E-mail:- info@masserv.. com & CIN : U74899DL1973PLC006950 GST No.: 07AAACM1642B1Z4

Date: 5th August, 2019

To, Surya Roshni Limited Prakash Nagar, Sankhol Bahadurgarh - 124507 Haryana - 124507

SUBJECT: DISPATCH OF ANNUAL REPORT 2018-19 ALONG WITH 46th ANNUAL GENERAL MEETING(AGM) NOTICE TO EQUITY SHAREHOLDERS OF SURYA ROSHNI LIMITED TO COMMENCE FROM 5™ AUGUST, 2019

Dear Sir,

We Mas Services Limited (Category-I, SEBI Registrar having Registration No. INR000000049) having its Registered Office at T-34, 2nd Floor, Okhla Industrial Area, Phase-II, New Delhi - 110020 in the capacity as Registrar and Transfer Agent of Mis Surya Roshni Limited hereby informed you that the dispatch of the Annual Report 2018-19 of the Company along with 461h Annual General Meeting Notice to Equity Shareholders (as registered on 2651 July, 2019) of Surya Roshni Limited (the 'Company') having Registered Office at : Prakash Nagar, San.khol, Bahadurgarh - 124507 (Haryana) and Corporate Office at Padma Tower - I, 2nd floor, 5 Rajendra Place, New Delhi- l l 0008 to commence from 5th August, 2019 through Registered Post/ Courier/ E-mail.