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PONDY OXIDES AND CHEMICALS LIMITED BOARD OF DIRECTORS REGISTERED & CORPORATE OFFICE Dr. Padam Chandra Bansal KRM Centre, 4th Floor, Chairman # 2, Harrington Road, Sri. D.P.Venkataraman Chetpet, Chennai - 600 031. Vice-Chairman Telephone No.: +91-044-42965454 Fax No. : +91-044-42965455 Sri. Anil Kumar Bansal Email : [email protected] Managing Director AUDITORS Sri. Sunil Kumar Bansal Sri. R.P.Bansal M/s Jeeravla & Co., Sri. Devakar Bansal Chartered Accountants 190 [Old No.150/5] Govindappa Naicken Street, Sri. Ashish Bansal Chennai – 600 001 Sri. Y.V.Raman Phone No : 91-044-25369245 Whole Time Directors BANKERS Sri. Anil Kumar Sachdev Sri. Harish Kumar Lohia Canara Bank – Anna Nagar East Branch Sri. P.N. Sridharan HDFC Bank – Mylapore Branch Directors REGISTRAR AND SHARE TRANSFER GM FINANCE & COMPANY SECRETARY AGENTS Sri. K. Kumaravel M/s. Cameo Corporate Services Limited Subramanian Building, FACTORY DIVISIONS No 1, Club House Road, Chennai – 600 002 Metallic Oxides Division [ M O D ] Phone : 91-044-28460390 [5 lines] Behind A-73 & 74, PIPDIC Industrial Estate Fax : 91-044-28460129 Mettupalayam, Pondicherry– 605 009 E-mail : [email protected] Plastic Additives Division [ P A D ] LISTING Sembiapalayam, Korkadu post The Bombay Stock Exchange Pondicherry – 605 110 Madras Stock Exchange National Stock Exchange [Under permitted Category] Smelter Division [ S M D ] Coimbatore Stock Exchange [Applied for Delisting] G 17 - G 19 & G 30 - G 32, SIPCOT Industrial Park, Mampakkam, Sriperumbudur, SEVENTEENTH ANNUAL GENERAL MEETING District – Kancheepuram, Tamil Nadu – 602 105 Day : Friday Zinc Refining Division [ Z R D ] Date : September 7, 2012 G-47, SIDCO Industrial Estate, Kakkalur,Thiruvallur, Tamil Nadu – 602 003 Time : 10.15 a.m. Alloying & Refining Division [A R D] Venue : Kasturi Srinivasan Hall (Mini Hall) B 19 & 20 Sidco Industrial Estate, Music Academy, 306, T.T.K. Road Maraimalai Nagar, Kancheepuram Dist., Chennai - 600 014 Tamil Nadu - 603 209 1 Pondy Oxides and Chemicals Limited CONTENTS STAND ALONE ACCOUNTS Page No. Notice to the Shareholders 3 Directors' Report 7 Auditors' Report 24 Balance Sheet 28 Statement of Profit and Loss 29 Cash Flow Statement 30 Notes 31 Statement pursuant to Section 212 of the Companies Act, 1956 53 & 54 CONSOLIDATED ACCOUNTS Auditors' Report 57 Balance Sheet 58 Statement of Profit and Loss 59 Cash Flow Statement 60 Notes 61 2 Seventeenth Annual Report 2011-12 NOTICE TO THE SHAREHOLDERS Notice is hereby given that the Seventeenth Annual General Meeting of the Members of M/s PONDY OXIDES AND CHEMICALS LIMITED will be held on Friday 7th September 2012 at 10.15 a.m at Kasturi Srinivasan Hall (Mini Hall), Music Academy, 306, T.T.K.Road, Chennai – 600 014 to transact the following business ; ORDINARY BUSINESS 1. To receive, consider and adopt the Directors’ Report and Audited Profit and Loss Account for the year ended 31st March 2012 and the Balance Sheet as on that date and the Auditors’ Report thereon. 2. To declare Dividend on Equity Shares. 3. To appoint a Director in the place of Sri.R.P.Bansal, who retires by rotation and being eligible, offers himself for reappointment. 4. To appoint a Director in the place of Sri.D.P.Venkataraman, who retires by rotation and being eligible, offers himself for reappointment. 5. To appoint a Director in the place of Sri.Harish Kumar Lohia, who retires by rotation and being eligible, offers himself for reappointment. 6. To appoint a Director in the place of Sri.Anil Kumar Bansal, who retires by rotation and being eligible, offers himself for reappointment. 7. To appoint Auditors and to fix their remuneration. In this connection, to consider and, if thought fit to pass the following resolution as an ordinary resolution. “RESOLVED THAT M/s Jeeravla & Co, Chartered Accountants, holding Firm Registration No: 001323S,allotted by the Institute of Chartered Accountants of India, the retiring Auditors be and are hereby reappointed as Auditors of the Company to hold office from the conclusion of the Seventeenth Annual General Meeting until the conclusion of the next Annual General Meeting of the Company on such remuneration as may be mutually agreed upon between the Board of Directors of the Company and the Auditors, in addition to reimbursement of service tax and all out of pocket expenses in connection with Audit of the accounts of the Company.” SPECIAL BUSINESS 8. To Consider and if thought fit to pass with or without modification the following resolution as an Ordinary Resolution : “RESOLVED that in accordance with the provisions of Sections 198, 257, 269, 309 and 310 and in accordance with Schedule XIII and other applicable provisions if any of the Companies Act, 1956 and such other approvals as may be required approval of the shareholders be and is hereby given for the appointment of Sri.Ashish Bansal as the Whole Time Director of the company for a period of three years with effect from 01.04.2012 on the following remuneration: Salary : In the scale of pay of Rs.1,20,000 – Rs.30,000 – Rs.2,10,000 with a basic pay of Rs.1,20,000/- per month with authority to the Board/Remuneration Committee to give suitable annual increment not exceeding 25% of Basic Salary. Perquisites : Such perquisites as may be provided by the Company as agreed upon by the Board of Directors of the Company and Sri. Ashish Bansal subject however that the total value of such perquisites payable in a year shall not exceed the amount of the annual salary. By Order of the Board For Pondy Oxides and Chemicals Ltd Place : Chennai K.Kumaravel Date : 27.07.2012 GM Finance & Company Secretary 3 Pondy Oxides and Chemicals Limited Notes : 1. EVERY MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND PROXY NEED NOT BE A MEMBER OF THE COMPANY. 2. Duly filled in Proxy forms must be deposited at the Registered Office of the Company atleast 48 hours before the commencement of the Annual General Meeting. 3. Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 is annexed hereto and forms part of the notice. 4. Pursuant to Clause 49 of the Listing Agreement, particulars of Directors seeking appointment / re- appointment at this meeting are annexed hereto. 5. The Register of Members and Share Transfer Books of the Company will remain closed on 07.09.2012. 6. Members are requested to : i) Note that as a measure of austerity, copies of Annual Report will not be distributed at the Annual General Meeting. ii) Deliver duly completed and signed Attendance Slip at the entrance of the meeting venue. iii) Quote the Folio / Client ID and DP ID Nos. in all their correspondence. iv) Note that no gifts / compliments / coupons will be distributed at the Annual General Meeting. v) A Corporate member shall be deemed to be personally present only if it is represented in accordance with Section 187 of the Companies Act, 1956 i.e. only if the corporate member sends certified true copy of the Board Resolution / Power of Attorney authorizing the representative to attend and vote at the Annual General Meeting. vi) Members are requested to notify immediately changes, if any, in their addresses; a. To Depository Participants (DP) in respect of shares held in the dematerialized form and b. To the Registrar and Transfer Agents of the Company, M/s.Cameo Corporate Services Limited, Subramanian Building, No.1, Club House Road, Chennai – 600 002 in respect of shares held in Physical form, quoting their folio numbers. 7. Members desirous of getting any information on any items of business of this meeting are requested to address their queries to Mr.K.Kumaravel, GM Finance & Co. Secretary at the Registered Office of the Company at least ten days prior to the date of the meeting, so that the information required can be made available at the meeting. 8. All documents referred to in the notice and annexures thereto along with other mandatory registers / documents are open for inspection at the Registered Office of the Company on all working days (except Saturdays and Sundays) between 03.00 p.m to 05.00 p.m prior to the date of Annual General Meeting. 9. The Securities and Exchange Board of India has notified that the shareholders/transferee of shares (including joint holders) holding shares in physical form are required to furnish a certified copy of their PAN Card to the company / RTA while transacting in the securities market including transfer, transmission or any other corporate action. Accordingly, all the shareholders / transferee of shares (including joint holders) are requested to furnish a certified copy of their PAN Card to the Company / RTA while transacting in the securities market including transfer, transmission or any other corporate action. 10. If dividend on shares as recommended by the Directors is approved at the meeting, the payment will be made within thirty days to those shareholders whose names are on the Company’s Register of Members on September 7, 2012. The dividend in respect of shares held in electronic form will be payable to the beneficial owners of the shares as at the end of business hours on September 7, 2012, as per details furnished by the Depostories for this purpose. 11. Members who have not encashed their dividend warrants for the years 2004-05; 2005-06; 2006-07; 2007-08; 2008-09; 2009-10 and 2010-11 are requested to approach the Company for revalidation / issue of duplicate warrants quoting their Ledger Folio / DP – Client ID Number. 4 Seventeenth Annual Report 2011-12 Pursuant to Section 205 A(5) of the Companies