Somany Limited Annual Reprot_2012-13

7/27/2019 Somany Limited Annual Reprot_2012-13

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Somany Ceramics LimitedAnnual report 2012-13


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Across the pages1-09

Business overview04 CorporAte identity

06 SoMAnyS journey

09 our MAnuFACturing FACilitieS

26-29

Strategic review26 ChAirMAnS StAteMent

28 joint MAnAging di reCtorS StAteMent

32-57

Operational review32 BuSineSS Model

34 StrengthS

36 BuSineSS driverS

47 BuSineSS SegMent revieW

52 MAnAgeMent diSCuSSion And AnAlySiS

54 FinAnCiAl StAteMent AnAlySiS

57 MAnAging riSkS

58-72

Statutory reports58 direCtorS report

65 CorporAte governAnCe report

73-120

Financial statements74 AuditorS report

78 BAlAnCe Sheet

79 proFit And loSS ACCount

80 CASh FloW StAteMent

82 noteS

102 ConSolidAted FinAnCiAl StAteMentS

Disclaimer

S a m s s a sc b C m a s b c s, c s, s ma s, xc a s c s ma b

wa s a m s w m a a cab s c s aws a a s. t

C m a ca s a s c s a m s s s a c a a a ac a s s c

ma a m s x ss m .im a ac s a c ca s c sc aw ma a s c s a a ab , c c cama a c C m a s c a

ma s, c a s m a s, cm c m s w c s w c C m a c c s b s ss, a ac s

a C m a s a s, s c asa , ab a s a fsca m s.


3/129

S a y C a cs L | A al 2012-13


4/129

youth is happy because it has the capacity to see

| s c l 2


5/129

beauty. anyone who keeps the ability to see beauty never grows old. F k

indias gdp growth

oF 5 per cent in2012-13 was the

slowest in 10 years.

somanys Five-year

cagr in revenues

oF ~26 per cent

was way above the

industry average.Youth uLneSS mAkeSunthinkAbLe thingShAppen.

a r 2012 13 | 3


6/129

those whom the gods love grow

o w

| s c l 4


7/129

l s c ( s x ) h.l. sg . t c

uk p t( s p l .). t

s c l 2007.

ext c x

0.52 1972 24.45 Fy 2013 ( 5.30 Jv ). t c

r . 150.76 m2013.

c s i

1,768 , 6,000 , 181 19 . i t m , dlF,

u , c c d , Jp a , l&t,v , s j p j , m2k, p , sd , a , cpwd, mes, awho, dgmap,aFnhb, dda esic, .

ps n (up )

k (h ), k (g j ) m (g j , j )

j i . t

c b n s ex . m

r . 222.71 31 m 2013.

m s

i ( ) ~12 ~6

i .

ps

f , , ,

.

av t p l ( j

m ) c (2.65

) x r .100

.

c v p l ( Jv ) c (2.65 ) r . 150 .

s 26% .

a

.

t

i

.

a r 2012 13 | 5


8/129

e sh l s(F c e )

ex

11.06

c p th , uk

a iso 14001

k

a iso 9001

c

k

0.52

r exh

d

1.04

ex

12.49

d

2.07

r

13.69

| s c l 6


9/129

s

k (g j ),x 2.65

r co o soc l

ex uo u o o

16.70 v u o

ge o

u o u

aqu

ex

3.13

r vc s , i

i

ex

3.60

ex

19.15 w

a

a 15 x

k x

i

p

r bis,

i c

r

pa

r c

ex

6.70

a qu 26 qu k v g t pl cov f p l

gg g u o 5.30 q

r ipo a o

o o u

l u g

r&d

, i

ex

8.51

r r . 1,000

a r 2012 13 | 7


10/129

theres something amazing about theoF youth and its power tosustain. iF theres a morepowerFul energy source,

i dont know about it. -takayuki ikkaku

s c . F ( ) (r . )pa c la s 2008-09 2009-10 2010-11 2011-12 2012-13

s 690 690 690 690 690r 5,692 7,495 9,557 11,711 14,386

l 13,725 16,223 19,122 18,097 17,608g ( cwip) 27,789 31,454 35,274 38,642 41,300n ( cwip) 13,002 15,384 17,592 19,397 20,891i 81 173 172 595 920c 17,600 24,758 29,502 32,071 39,540c 8,058 13,587 15,825 19,259 26,208n 9,542 11,171 13,677 12,812 13,332n 43,919 53,482 70,834 87,037 104,623o 448 504 721 394 567m 11,016 10,473 12,746 15,318 16,576e 6,365 6,311 8,683 10,917 13,058e 3,333 4,328 5,431 6,552 7,375o , x 19,300 27,042 37,885 47,187 59,478ebidta 4,354 5,832 6,810 7,456 8,705i 1,603 1,329 1,712 2,065 1,998ebdt 2,751 4,503 5,098 5,391 6,707d 1,404 1,447 1,727 1,822 2,040

pbt 1,347 3,056 3,371 3,569 4,667t x x 473 1,010 1,028 1,094 1,508pat 874 2,046 2,343 2,475 3,159n 6,382 8,185 10,247 12,401 15,076c 22,625 26,728 31,935 33,033 35,302eps (r .)* 2.53 5.93 6.79 7.17 9.16b (r .)* 18.50 23.73 29.70 35.95 43.70d (r .)* 0.30 0.60 0.70 0.80 1.20

ronw (%) 14.55 28.09 25.42 21.86 22.99roce (%) 12.89 17.77 17.33 17.34 19.51

* F r 2 n : a s vi c a , b s 2010 11 . t j s vi .

| s c l 8


11/129

our manuFacturing Facilities

total annual capacity oF24.45 mn sqm

pla : m (g j ),c v pl (Jv)

C ss : 2012

Ca ac y: 2.65

pla : k (h )

C ss : 1972

Ca ac y: 13.13

pla : k (g j )

C ss : 1983

Ca ac y: 6.02

pla : m (g j ),

v t p l (Jv)C ss : 2012

Ca ac y: 2.65

a r 2012 13 | 9


12/129


13/129

it took somany 38 years to achievers 535 cr in net sales in 2009-10.i , c

r . 1,046 2012 13.

a s

x .

s

10 ; c cagr 26%

2012 13

pat cagr 50.7%

a ( 300 ) r 1.46 2008 09 r 3.49 2012 13

Y v a s. Y l l s.

pat cagr

a r 2012 13 | 11


14/129

t t 2 t 3 i 66% 2007 08

r t i rr t 2 t 3

28% 27% 26% 25% 24%

(in rs. c o e)

2008-09

69%

2009-10

70% 72%

2010-11

73%

2011-12

73%

2012-13

| s c l 12


15/129

s omany was one oF the First indiantile companies to recognise theconnection between businessgrowth and a non-metro presence.

s ,

c t 1 i .

a s .

a i t 2 t 3 ,

s .

t t 2 t3 i 66% 2007 08 73% 2012 13

a t 2 t 3 ( 300 ) r 0.77 2007 08 r 2.67 2012 13

Y - s. Y l a s.

a r 2012 13 | 13


16/129

t 28.4%

2008 09;

2012 13

VALue pYrAmidh m l7%

27%

66%

2010 11

8%

47%

45%

2011 12

13%

52%

35%

2012 13

| s c l 14


17/129

until 2002-03, somany was largely a tilemanuFacturing company. what the companydid not make, it did not sell.

a 98 c .

a s . t c

. b , c ( !) .

n r 9.39 2008 09

r 35.20 2012 13o r 124.76 2008

09 r 541.02 2012 13

o 28.4 2008 09; 51.7 2012 13

Y v s. Y va ls.

a r 2012 13 | 15


18/129

i v s a l s( a ac v s) (in rs. c o e)

1998 99 2002 03

2003 04 2007 08

2008 09 2012 13

13.69

18.21

54.84

| s c l 16


19/129

in the past, it would have been usual For tilecompanies to believe that customers wereloyal and that a certain brand purchased byan ancestor got selected over the other brandsby each successive generation when they built

their respective homes. .

t . a ,

.

s 1.5 2.0 . i

2012 13, s r . 55 / /

, x ( ) x / .

t : ~6%

i ~12% .

Y a s. Y w s.

i 2012 13,s r .

/ /

c s

a r 2012 13 | 17


20/129

d 2012 13, Jv r . 143.62

,

.

2008-09

16.70

2009-10

16.70 19.15

2010-11

21.80

2011-12 *

24.45

2012-13 *

A al c ca ac y(mn sqm)

* u Jv

p g g o o 12.2%

| s c l 18


21/129

u ntil recently, somany invested in the directownership oF manuFacturing capacities inline with the prevailing belieF that directcontrol would reinForce quality management

and that the consequently lower costs oFmanuFacture would help recoup the investment.

t s r . 385 19.15 r 20

.

a s .

i r 8.28 26%

m (g j ) 5.30

t ~20

F , s r 2.53 ; r . 7.18 Fy 13

d 2012 13, Jv r . 143.62 , 14%

Y x l s. Y xc ls.

a r 2012 13 | 19


22/129

d

4.4% 2011 12

2008-09

226

2009-10

237 260

2010-11

284

2011-12

321

2012-13

r al sa sq66.7

7.3

22.9

2.7.4

c e r a m i

58.4

g l a z e

d

v i t r i f e d

15.1

23.3

p l i s h e d

v i t r i f e d

2.7

s a n

i t a r y w a r e a n

d

b a t h

f t t

i n g

.5

o t h e r s

C a c x (in %)

2011 12 2012 13

| s c l 20


23/129

s omany was always proactive in introducingthe latest global trends into indian industry,gaining the respect For being a First-mover.a s .

i

n 2012 13 49.2%

i vc s 2009, r . 157

d 19.6% 4.4% 2011 12

t j , r . 226 2008 09 r . 321 2012 13; ,

r 37 (2012 13) i .

t cagr 67.4 ;

19.5 x 2008 09 64.7 2012 13

Y c a s. Y c s.

a r 2012 13 | 21


24/129

2012 13

n r 0.34

2008 09 r

2008

40

2009

39 37

2010

36

2011

35 34

2012 2013

Av a a (yea s)

| s c l 22


25/129

u ntil a Few years ago, somany wasdismissed as a middle-aged company oFFuddy-duddies.i :

40 , 20; x 40 .

a s .

t , x ,

c ~15 ; 5.30 Jv j 15

t c 1,400 5,200

t c i

75

t c 39 2008 09 34 2012 13

n r 0.34 2008 09 r 0.60 2012 13

Y xc s. Y xc ls.

a r 2012 13 | 23


26/129

e 2012 13,

w * ( )d

2008-092007-08 2009-10 2010-11 2011-12 2012-13

102

79 7670

5447

2.72.2

2.0 1.91.5 1.2

| s c l 24


27/129

u ntil a decade ago, our detractors werepronouncing the worst For somany.t c 1.17

2.67 2007 08

a s

a , c 103

2007 08 47 2012 13; 9.1% 2007 08

2.7% 2012 13

e 2012 13, 84.2%

t 20 c 2012 13

roce 11.3% 2007 08 19.5% 2012 13 ronw 7.4% 23% 2012 13,

Y s a s. Y s s a s.

a r 2012 13 | 25


28/129

middle-aged andgrowing younger!s Mr. Shreekant Somany ,c m d

i ,

.

b .

J : ;

.

a f ;

j .

a ; .

a ; f

.

a ;

, 12 20

.

t t

f ,

, .

s , s ,

.

| s c l 26


29/129

Growing: s 1972 0.52 ,

(2.07 ) . t 36.45

(19.15 , 5.30 Jv

) ~12% i .

Adaptability: s . w

i ;

j , s x (

75 ). b ,

, , .

Innovative: s ( j ); c i

800x800 (gvt)

600x1200 gvt, 400x800 gvt 800x800 (pvt)

w

, s .

Expanding: s i

. t c x x

25 .

Choice: s . i s r . 20

. r . 275 . ; , s

x

.

y t f .

i s 38 r 535 2009 10;

.

d 2012 13, c

: 12.3% , 24.3% , 22.9%

20.4% .

w 78 2008 09; 47

.

o 13 2008 09;

roce 19.5 , f .

c ii

. F ,

i , (

33 )

.

a , s x

, , /

.

t , i ,

c .

S a S a yc & m d

a tile is no longer viewed as

a Functional accessory; it is

a Full-Fledged value-added

Fashion statement.

w roce

, f .

a r 2012 13 | 27


30/129

the bigger the challenge, the morespirited the response. the result wasa record year at somany in 2012-13.Mr. Abhishek Somany , J m d , f

Q: h c 2012 13 ?

A: t i 2012 13,

, f , ,

, 36 .

w 5% 2012 13, i 12 14% s

20%.

Q: w ?

A: i j :

s

h , pbt 36

4.46

w i , x ,

i 83% 85%

a

l ~1400 .

a 54 s .

t x

.

| s c l 28


31/129

Q: w 2012 13?

A: a s , :

One, 44

2011 12 49 2012 13, .

Two, j

c v pl v t p l 5.30 j 20%

x .

Three,

x ( ), .

t 1.5%

.

Four, 1,400 , x x 2012 13.

Five, , .

Q: y .

A: t .

o , 13 r . 321 . o

55 2011 12 65 2012 13. t

1.46x 1.17x 2.73x 3.34x.

i , 2012 13 . d i ,

2.15x 2008 09 1.17x 2012 13; 4.6x 2008 09 7.9x ;

r 22.76 r 52.82 2012 13; 44 2008 09,

20 2012 13.

the bigger thechallenge, themore spirited theresponse.

Q: w s ?A: w x i

33% 40% 2020. t t 2 t 3 , , , ,

. w x

f x ,

j . b ,

gst x ,

.

i x : ,

,

.

a s ,

, ,

, x

.

w

44 2011 12

2012 13

a r 2012 13 | 29


32/129

ebidtA (rs. c o e)

2 0 0 9 - 1

0

2 0 1 0 - 1

1

2 0 1 1 - 1

2

2 0 1 2 - 1

3

5 8 . 3

2

6 8 . 1

0

7 4 . 5

6

8 7 . 0

5

n sal s (rs. c o e)

2 0 0 8 - 0

9

4 3 . 5

4

2 0 0 9 - 1

0

2 0 1 0 - 1

1

2 0 1 1 - 1

2

2 0 1 2 - 1

3

5 3 4

. 8 2

2 0 0 8 - 0

9

4 3 9

. 1 9

7 0 8

. 3 4

8 7 0

. 3 7

1 , 0

4 6 . 2

3

5 y

c a g r

2 6 . 1

%

n w (rs. c o e)

2 0 0 9 - 1 0

2 0 1 0 - 1 1

2 0 1 1 - 1 2

2 0 1 2 - 1 3

8 1 . 8 5

1 0 2

. 4 7

1 2 4

. 0 1

1 5 0 . 7 6

5 y

c a g r

2 1 . 8

%

5 y

c a g r

1 8 . 1

%

g ss l c ( clCWip) (rs. c o e)

5 y c

a g r

8 . 2 %

2 0 0 8 - 0 9

2 7 7

. 8 9

2 0 0 8 - 0 9

6 3 . 8 2

2 0 0 9 - 1 0

2 0 1 0 - 1 1

2 0 1 1 - 1 2

2 0 1 2 - 1 3

3 1 4

. 5 4

3 5 2

. 7 4

3 8 6

. 4 2

4 1 3

. 0 0

| s c l 30


33/129

epS ( as c) (rs.)

2 0 0 9 - 1 0

2 0 1 0 - 1 1

2 0 1 1 - 1 2

2 0 1 2 - 1 3

5 . 9

3 6

. 7 9

7 . 1

7 9

. 1 6

5 y

c a g r

5 0 . 7

%

Cas f (rs. c o e)

5 y

c a g r

2 0 . 9

%

b val s a( as c) (rs.)

5 y

c a g r

2 1 . 8

%

p f ax (rs. c o e)

2 0 0 9 - 1

0

2 0 1 0 - 1

1

2 0 1 1 - 1

2

2 0 1 2 - 1

3

3 0 . 5

6

3 3 . 7

1

3 5 . 6

9

4 6 . 6

7

5 y

c a g r

4 4 . 2

%

p f a ax (rs. c o e)

roCe (pe cent)

5 y

c a g r

1 1 . 6

%

2 0 0 8 - 0

9

2 2 . 7

6

2 0 0 8 - 0

9

1 3 . 4

7

2 0 0 9 - 1

0

2 0 1 0 - 1

1

2 0 1 1 - 1

2

2 0 1 2 - 1

3

2 0 . 4

6

2 3 . 4

3

2 4 . 7

5

3 1 . 5

9

5 y

c a g r

5 0 . 7

%

2 0 0 8 - 0

9

8 . 7 4

2 0 0 9 - 1

0

2 0 1 0 - 1

1

2 0 1 1 - 1

2

2 0 1 2 - 1

3

3 2 . 9

5

4 3 . 1

6

4 2 . 6

6

5 2 . 8

2

2 0 0 8 - 0 9

2 . 5

3

2 0 0 9 - 1 0

2 0 1 0 - 1 1

2 0 1 1 - 1 2

2 0 1 2 - 1 3

2 3 . 7 3

2 9 . 7 0

3 5 . 9 5

4 3 . 7 0

2 0 0 8 - 0 9

2 . 5

3

2 0 0 9 - 1 0

2 0 1 0 - 1 1

2 0 1 1 - 1 2

2 0 1 2 - 1 3

1 7 . 7 7

1 7 . 3 3

1 7 . 3 4

1 9 . 5 1

2 0 0 8 - 0 9

1 2 . 8 9

a r 2012 13 | 31

business model

hF l i b


34/129

youthFulness is about

not when you were born. karl lagerFeld

| s c l 32


35/129

p s f . h ,

;

( , )

.s : ( , , , cp

) . t x

2.3 c 2009 10 3.2 2012

13.

ps

,

x

. b , c

f ,

, .

ds , x r&d

j

. t

x . s

vc s 2009,

r . 157

j .

as

,

j . t s

b s

f .

is ( )

. i

x .

rs x

. i 181/ 2012 13,

25%

( ).

ss

. i 2008 09, c

r 137.25 r 63.82 r 439.19 ; 2012 13, c

r 176.08 r 150.76 r 1,046.23 .

a r 2012 13 | 33


36/129

s

t r e n g t h s

it is all that the young can do For theold, to shock them and keep them

Brands

i

. tc

,

.

Market shares j ~12

i

~6 .

s

Digitals

75 . d

, , ,

, ,

,

.d

4.4 2011 12 19.6

2012 13.

Presenceso g o-g fo g o

u o -. t no

sou ik o uou 70

o u . tco x

o 25ou .

| s c l 34


37/129

- george bernard shaw

Broadly retaila

70

20 ,

s : 50

20

.

Clientss

t m , dlF,u , c cd , Jp a , l&t,v , s j p j ,m2k, p , sd , a , cpwd,mes, awho, dgmap,

aFnhb, dda esic, .

Designss

i ,

,

s i .

Researchso o o vc s

o og , f

i u , k o -

o o u u o -.

Qualityso u u ox o -

g o-

o o o f - - 85% 2012-13

o u -o .

Marketingso

k - g o o 400

o o (u o 50 go), 80

g mba qu f -

o x .

a r 2012 13 | 35


38/129

is the talent oF youth, as

is oF age. - Jonathan swiFt

| s c l 36


39/129

b 1

Quality and R&D

t

16m 31, 2013n

1,3982012 13

r

r . 234.12 , 2012 13

oi

,

,

.

i s

r&d ,

1996 16

. t

,, x

. t 30

.

t f

2012 13 49.2 c .

b , 84

2009 10 85 2012 13.

h , 2012 13t vc s

r . 157

F 85

i x

4.5 19.1 ;

a r 2012 13 | 37


40/129


41/129

b 2

Retailpresencer ( . )

1.30m 31, 2013

t

181m 31, 2013

oi

,

. o , s

j

.

i ,s j x

i

,

x ( , , x

) .

h , 2012 13i (s x / )

127 181 1.30

2012 13

a 24.4

r 25.2 c

(24.4 201112)

p

a r 2012 13 | 39


42/129

o

g , c s ex t 2 t 3 , , ,

.

t s

s ( x )

1.30 . .

181n s m31, 2013 68

2010 11

ty n

s w s

p c s

s gex

13 ex (, , , )

i

s ex 51 w ,

s s 117 c ,

| s c l 40


43/129

b 3

Marketing anddistribution

oi ,

. t

.

o , s

c . s r 1.17 ( 300 ) 2007 08; r 3.70 2012 13,

x ( i

).

t

c .

t c t 2 t 3 , f

t 2 t 3 66% 2007 08 72% 2012 13.

t

; i

.

h , s j

. t c

, cagr 26

.

h , 2012 13r 94.1% x 19.4%

.

s 278 .

s 50

d

1,768m 31, 2013r

r . 0.63 2012 13

t

436 2012 13

a r 2012 13 | 41


44/129

b 4

I ll l


45/129

Intellectual capital

oi

,

. s 1,743

x .

o , c

, .

c , c x x .

t c

.

h , 2012 13s 1675 2011 12

1743.

t 64.3 .

p r 0.52 2011 12 r 0.60 .

o

g , c x

, erp

.

t

1,743m 31, 2013

35.6p 2008 09

2012 13

a

34 , m 31, 2013

i

r . 1.26

n

r . 0.34 2008 09

n

r . 0.60 2012 13

a r 2012 13 | 43

b 5

B d


46/129

Brand management

oi

, : .

h .

t s c . t ,

, , . t (

) . t :s i

.

o , c ( )

, . w

.

h , 2012 13b somany a m

p b .

i r 5.15 200809 r 15.19 2012 13;

1.2 2008 09 1.5 2012 13.

l

r 124.76 2008 09 r 541.02 2012 13.

t c ( c ) 64

2008 09 57 2012 13.

e i x

c i , .

t a r c l a c

p a (lacp) 100 c m .

ex

; x .

c s ex f .

u (F ) 23,000

o , 2011.

og , x

, (vc,

d d ).

i

r . 49.69Fy10 Fy13n

534.82m 31, 2009

v vc s

r . 156.84 m 31, 201354.84

r . 2008 09 2012 13

n

1,046.23m 31, 2013

| s c l 44

b 6

M f i


47/129

Manufacturingoi ,

, x .

o , s

. t f ,

. t f 91% 2012 13 85 .

h , 2012 13t 4.5% 2011 12 19.1% 2012 13

d c r . 23

, .

e ,

.

og , c x

, .

p

16.70 2008 09p

19.15 2012 13

c

91%2012 13

p

85 %2012 13

a r 2012 13 | 45

b 7

O t i


48/129

Outsourcing(including JVs)

ot , s

j c

.

s

x

, .

t

2004 05, r . 505.82 45.6%

c .

h , 2012 13a 26% c v p

l ( Jv) 2.65 . s

x s J 2012.

t Jv 75%

87%.

o r . 505.82 , Jv

28.4%

s Jv 800 x800 ,

600 x1200 400 x800 .

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directorsreportYour Directors have the pleasure in presenting the 45th Annual Report together with the Audited Accounts o the Company or the year ended 31stMarch, 2013.

Financial Results (Rs. in Lacs)Particulars 2012-13 2011-12

Gross Revenues rom Operations 111242 92397

Net Revenues rom Operations 105014 87323

Other income 176 106

Pro t be ore Interest, depreciation and tax 8705 7456Interest and nance charges (net) 1998 2065

Pro t Be ore Depreciation 6707 5391

Less: Depreciation 2040 1822

Pro t be ore tax 4667 3569

Less: Provision or tax (net) 1508 1094

Pro t a ter tax 3159 2475

Add: Balance brought orward 8086 6182

Surplus available or appropriation 11245 8657

Appropriations:

Proposed dividend on equity shares 414 276

Tax on proposed dividend 70 45

Trans erred to general reserve 320 250

Balance Carried to balance sheet 10441 8086

Total 11245 8657

| Somany Ceramics Limited58


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Operating ResultsYour Company once again outper ormed theaverage industry growth o 12-14% despitesluggish economic growth in almost allsectors o economy including construction.During the year under review, gross revenuesincreased rom Rs. 92,397 lac in previousyear to Rs. 11,1242 lac in the current yearscaling a growth o 20.4% or the year and a 5years CAGR o 25.9%.This could be achieveddue to larger share o value added sales andalso expanding volumes rom outsourcingbusiness. This in turn could be made possibledue to urther strengthening o the sales anddistribution network backed by higher brandvisibility.

However, the pro t margins remained underpressure mainly due to substantial increase incost o uels (natural gas) and some o the rawmaterials along with the limited ability to passon this cost burden to the end consumer dueto competition.

Despite o the above, the Earnings be oreinterest, depreciation and tax (EBIDTA), Pro tbe ore and a ter tax increased to Rs. 8,705 lac(16.8%), Rs. 4,667 lac (30.8%) and Rs. 3,159lac (27.6%) respectively.

DividendEncouraged by good operating and nancialper ormance, your Directors recommended adividend o 60% on equity shares at Rs.1.20pershare ( ace value o Rs. 2/- each) or the yearunder review as against 40% at Rs.0.80 pershare in the previous year.

Corporate HighlightsCapacity Expansion: Your Company orgedanother joint venture by acquiring 26%equity stake in Commander Vitri ed PrivateLtd. which has set up a new plant at Morbi,Gujarat with an annual capacity to produce upto 2.65 million square meters o large ormatpolished and glazed vitri ed tiles. The plantstarted production since June 2012.

Vintage Tiles Private Ltd, the rst JV with amanu acturing acility to produce up to 2.65million square meters o polished vitri edtiles in which also your company acquired26% stake last year continued production opolished vitri ed ti les or the ull year.

Your Company is entitled to buy and sell theentire production o both the JVs under itsown brand name. The combined sales o yourcompany rom the products o both the JVs

stood at Rs.143.62 crore, which is 12.96% oyour companys gross turnover.

Technological upgradation: Your Companycontinued to invest signi cantly in upgradingits plant and machinery. With addition othree more state-o -the-art imported digitalprinters or producing digital tiles, the totalnumber o the same increased to six duringthe year under review. New age digital tileswill continue to enhance your Companyssales realizations over vanilla variants.

Retail outlets: Your Company strengthenedits distribution network by urther increasingits retail oot prints. During the year underreview, ty our (54) new ranchisee-run /sel - managed retail outlets were added.With this, the total number o retail outlets(Somany Exclusives, Somany Global andSomany Studios) stood at 181 as on March,2013.

Recognitions and accreditations: YourCompany was awarded with ollowingrecognitions and accreditations during theyear:

Participated in LACP (League of AmericanCommunication Pro essionals), a global

|Annual Report 2012-13 59


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In ormation pursuant to Section 217 (1) (e) o the Companies Act, 1956 read with the Companies (Disclosure oParticulars in the Report o Board o Directors) Rules, 1988 orming part o Directors Report or the year ended 31stMarch, 2012.Annexure to the directors reportA. Conservation o energyYour Company continues to be committedto energy conservation in its manu acturingoperations.

(a) Energy conservation measures taken:I. Utilization o waste heat rom gas-

based generators resulting intosavings o natural gas in spray dryer.

II. Utilization o kiln exhaust into dryersresulting into saving o natural gas.

III. Using energy-e cient lighting(LED), variable requency drivesin ans, blowers and pumps, e cient

trans ormers and low power losscapacitors or reducing consumptiono electricity/ power.

IV. Restarted two saw dust based FBCs inplace o natural gas based combustion.

V. Power trading activity resultedinto reduction in requent powerinterruptions and usage o gas/diesel-based captive generation.

(b) Additional investments and proposals iany being implemented or reduction oconsumption o energy:I. Continuous e orts and necessary

investments are being made toconserve electricity and natural gas

II. To urther reduce gas based captivegeneration through UPS supply tocritical equipments.

(c) Impact o measures (a) and (b) aboveor reduction o energy consumptionand consequent impact on the cost oproduction o goods.

The measures indicated as per (a) and(b) above are resulting in substantialreduction in energy consumption/costs.

(d) Total energy consumption and energyconsumption per unit o production inrespect o speci ed industries:

The Company is not covered under the listo speci ed industries.

B. Technology Absorption1. Research and Development(a) The Company carried out following major

R&D activities during the yearI. Success ully added three more digital

printing machines to manu acturemore value-added products.

II. A patent led or newly developed slipresistant tiles

III. Continuous ne tuning o body and

glaze materials composition or betterproductivity and cost reduction.

(b) Bene ts derived as a result o above R&DDevelopment o value-added products,resulting in better sales realisationsand reduced manu acturing costs andwastages.

(c) Further plans and expenditure o R&DI. To introduce large number o designs

using digital printing technology tourther improve the basket o ownmanu actured value-added tiles.

II. To brace new technologies related

to products, designs and processesbeing introduced in the ceramic tileindustry globally.

(d) Expenditure on R&DThere was no major expenditure incurredto carry out the R&D when compared withthe size o the turnover o the Company.

2. Technology absorption, adaptation andinnovation

This continues to be an ongoing processand has been resulting in improved salesrealisations, productivity and qualityon one hand and saving in energy andmaterials consumption costs on the other.

C. Foreign Exchange Earnings and OutgoForeign ExchangeEarnings Rs. 2,227 lacForeign Exchange Outgo Rs. 5,514 lac

For and on behal o the Board

Shreekant SomanyPlace: New Delhi Chairman andDated: 21st May, 2013 Managing Director



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In ormation as per Section 217 (2A) o the Companies Act, 1956 read with Companies (Particulars o Employees)Rules, 1975 and orming part o the Directors Report or the year ended 31st March, 2013

Employed or the fnancial year and in receipt o remuneration at a rate which was not less than Rs. 60 lac per annum.

Annexure to the directors reportParticulars Shri Shreekant Somany Shri Abhishek Somany Shri G.G.Trivedi

Age 65 years 41 years 67 yearsDesignation Chairman and Managing Director Joint Managing Director Chie Executive O cerNature o Duties Overall management o the

Company and policy decisionsManagement o companyoperations

Management o plant operations

Remuneration Received Rs. 226.44 Lac Rs. 239.53 Lac Rs. 87.58 LacNature o Employment Contractual Contractual ContractualQuali cations B. Sc BBA (UK) M. Sc , AICWA, LLBExperience 42 years 17 years 42 yearsDate o Commencement oEmployment

1st September, 1992 1st July, 1996 1st May, 1987

Name o last Employment Hindustan Sanitary ware &Industries Ltd.

LMP Precision Engineering Ltd.

Position Held President - PresidentPercentage o Equity Shares o theCompany held

0.47% 0.25% -

Note:I. The gross remuneration includes salary, leave encashment, reimbursement o medical expenses and the Companys contribution to provident

und besides value o other perquisites calculated in accordance with Income Tax Act / Rules.

II. Shri Shreekant Somany, Chairman and Managing Director is ather o Shri Abhishek Somany, Joint Managing Director o the Company, hencethey are related to each other.

For and on behalf of the Board

Shreekant SomanyPlace: New Delhi Chairman andDated: 21st May, 2013 Managing Director



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section 212Statement pursuant to Section 212 o the Companies Act, 1956Name o the Subsidiary companies SR Continental Ltd. Somany Global Ltd.(A) Financial Year o the subsidiary Company 31st March 2013 31st March 2013(B) Shares o the subsidiary held by SomanyCeramics Ltd on the above date(a) Number and ace value 185000 equity shares o Rs. 10/- each ully paid

up500000 equity shares o Rs. 10/- each ully paidup

(b) Extent o holding (together withnominees)

100% 100%

(C) The net aggregate o proft / loss o thesubsidiary Company so ar as it concernsthe members o Somany Ceramics Ltd

(a) Not dealt in the accounts o SomanyCeramics Ltd or the year ended 31stMarch 2013 amounted to:I. For the subsidiary nancial year

ended as in (A) aboveRs. 15.48 Lac Rs. 13.50Lac

II. For the previous nancial years othe subsidiary since it became theHolding Companys subsidiary

Rs.229.80 Lac (Rs. 32.83 Lac)

(a) Dealt with in the accounts o SomanyCeramics Ltd or the year ended 31stMarch 2012 amounted to:I. For the subsidiary nancial year

ended as in (A) above R

II. For the previous nancial years othe subsidiary since it became theHolding Companys subsidiary

Shreekant Somany Abhishek Somany Ambrish JulkaChairman & Managing Director Joint Managing Director AGM (Legal) &Company Secretary

Place: New DelhiDate: 21stMay 2013


governance


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corporategreportCompanys philosophy on corporate

governanceGood Corporate Governance Practices arestrength o any success ul enterprise. TheCompanys visionary ounder had laid theoundation or good governance and made it

an integral part o the Companys philosophyo good Corporate Governance which hascharacteristics o airness, accountability,disclosure and transparency. This has enabled

your Company to achieve sustainable growth onits journey to continue success, thereby meetingthe expectations o the stakeholders. TheCompany places emphasis on business ethicsand responsible conduct and to disclosures ooperating per ormance and other key eventson timely basis to its shareholders and thestakeholders. The Company views their role astrustees o its shareholders, stakeholders andsociety at large.

Board o DirectorsThe Board comprises o nine Directors as o 31stMarch, 2013. None o the non-executive directorso the Company has any pecuniary relationshipor transaction with the Company. The non-executive directors o the Company are highlyrespected and accomplished pro essionals in thecorporate and academic world. The Compositiono the Board is in con ormity with Clause 49 othe Listing Agreement.

Category: P=Promoter, I=Independent($) Excludes Directorships in Indian Private Limited Companies other than subsidiaries o Public Limited Companies and memberships o various

Chambers and other non-corporate organizations.(@)Includes the membership/chairmanship in Audit Committee and Shareholders/Investors Grievance Committee only o Public Limited Companies.

Director Category No. o BoardMeeting held

No. o BoardMeetingattended

Attended lastAGM

Number oDirectorships

in othercompanies ($)

No. o Committee positionsheld in companies (@)

No. o sharesheld

Chairman Member

Mr. ShreekantSomany P 4 4 Yes 5 - - 161,385

Mr. AbhishekSomany

P 4 4 Yes 2 - - 85,500

Mr. R. K. Daga I 4 4 Yes 2 3 1 5,000Mr. R. L.Gaggar

I 4 3 No 11 - 9 -

Mr. G. L.Sultania

I 4 4 Yes 11 4 4 1,250

Mr. Salil

Singhal

I 4 2 No 5 - 3 -

Dr. Y. K. Alagh I 4 3 No 4 1 6 -Mr. RavinderNath

I 4 3 No 3 1 1 -

Mr. SandeepKumar

I 4 4 No - - - -

The details o the Directors by category, attendance and other Directorships including Memberships/Chairmanships o Board Committees and number oshares held are:



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Board unctionsApart rom review and consideration omatters re erred to under Clause 49 o theListing Agreement, the Board also undertakesthe ollowing: Laying down the corporate philosophy and

the mission o the Company;

Formulating the strategic business plans;

Setting standard for ethical behavior;

Compliance with all the rules andregulations;

Informing shareholders of the variousdevelopments within the Company.

Meeting o the Board o DirectorsThere were Four Board meetings during theyear 2012-13 i.e. on 19th May, 18th July, 17thOctober, in 2012 and on 16th January in 2013.

Code o ConductThe Board o Directors has adopted a Code

o Conduct or its members and seniorpersonnel o the Company in terms o Clause49 o the Listing Agreement. A declarationto this e ect, duly signed by Chie ExecutiveO cer was placed be ore the Board and isenclosed orming part o this report. The codeo conduct ramed by the Company is postedon the Companys website.

COMMITTEES OF THE BOARDAudit Committee

Composition and Terms o Re erenceThe Audit Committee comprises o vemembers and all are independent and non-executive directors. Mr. R.K. Daga is theChairman o the Committee. The othermembers o the committee are Dr. Y.K.Alagh, Mr. Salil Singhal, Mr. R. L. Gaggarand Mr. G. L. Sultania. The Audit Committeemembers are accomplished pro essionalsrom the corporate and academic world

and are nancially literate. The Committeemeets the requirements o provisions underSection 292A o the Companies Act, 1956and clause 49 o the Listing Agreement inregard to constitution o this Committee. TheCompany Secretary o the Company acts asthe Secretary to the Committee. The minuteso the each Audit Committee Meeting areplaced and discussed in the next meeting othe Board. The terms o re erence o the audit

committee cover the areas as contemplatedunder Clause 49 o the Listing Agreementand Section 292 o the Companies Act, 1956,besides other terms as may be re erred by theBoard o Directors.

Terms o re erenceBrie description o the terms o re erence is:-- E ective supervision o the nancial

reporting process, ensuring nancial andaccounting controls and compliance with

the policies o the Company.- Periodical interaction with the statutory

and internal auditors to ascertain thequality and veracity o the Companystransactions.

- Review o adequacy and e ectiveness oInternal Audit Function and the InternalControl System.

- Overall direction on the risk managementpolicies.

- Review o the annual and quarterlynancial statements with managementbe ore submission to the Board.

- Compliance with Listing.

- Related party transactions.

- Quali cations in the audit report etc.

Invitees to the Audit CommitteeBoth the statutory and internal auditors othe Company are regular invitees to the Audit

Committee meetings to brie the members.The meeting o the Audit Committee isgenerally attended by the Chairman &Managing Director, Chie Executive O cer,President (Marketing), Vice-President(Finance) & other departmental heads.

Frequency o meetingsDuring the year 2012-13 our Audit Committeemeetings were held on 19th May, 18th July and17th October, in 2012 and on 16th January in2013.

The maximum gap between any two meetingswas less than our months.

The attendance o the Audit CommitteeMeetings is given below:

Name o MemberDirector

No. o Meetingsattended

Mr. R. K. Daga(Chairman)

4

Mr. R. L. Gaggar(Member)

3

Dr. Y. K. Alagh(Member)

3

Mr. G. L. Sultania(Member)

4

Mr. Salil Singhal(Member)

2

The Chairman o the committee was presentat the last Annual General Meeting o theCompany to answer shareholders queries.

SHARE TRANSFER COMMITTEEYour Company has a Share Trans erCommittee comprising o Mr. G.L. Sultania(who chairs the meeting), Mr. N. Goenkaand Mr. S. Banerjee. The Committee mettwelve times during the year under review.The Board has delegated the power o ShareTrans er to the Companys Registrar & Share



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Trans er Agents, who process the trans ers, inrespect o physical and shares under Demat.During the year under review, total o 16350shares were trans erred and dispatchedwithin 15 days o receipt in respect o shares,documents o which were ound valid in allrespects. There were no pending trans ers ason 31st March, 2013.

SHAREHOLDERS/INVESTORS GRIEVANCECOMMITTEE

The Committee was constituted tooversee redressal o shareholders/Investors grievances relating to trans ers,transmissions, issue o duplicate share

certi cate(s) and all other matters concerningshareholders complaints. Mr. R. K. Daga thenon-executive independent director is headingthe committee along with Mr. R. L. Gaggarand Mr. G. L. Sultania, the other memberswho are also non-executive and IndependentDirectors. Mr. Ambrish Julka, AssistantGeneral Manager (Legal) and CompanySecretary is the compliance o cer. Threemeetings o the Committee were held on 4th

May and 12th September in the year 2012and 2nd January in 2013. During the year 20complaints were received and resolved. Therewere no complaints o Shareholders pending

as on 31st March, 2013.

REMUNERATION COMMITTEEThe Remuneration Committee was ormedinteralia to deal with all elements oremuneration or whole-time directors,service contracts, severance ee, noticeperiod etc. Mr. R. K. Daga, the Non-ExecutiveIndependent Director is the Chairman o theCommittee and Mr. R. L. Gaggar and Mr. G. L.Sultania are the other members, who are alsoIndependent non-executive Directors o theCompany. Two meetings o the RemunerationCommittee were held during the year 2012-13i.e on 4th May, 2012 and 3rd October, 2012.

Remuneration to Directors

Name o the Directors Salary & perquisites(Rs.)

Commission or 2011-12(Rs.)

Sitting Fees(Rs.)

Total(Rs.)

Mr. Shreekant Somany* 1,36,91,535** 89,51,927 --* 2,26,43,462Mr. Abhishek Somany* 1,33,06,761** 1,06,46,056 --* 2,39,52,817

Mr. R. K. Daga -- 5,00,000 1,05,000 6,05,000Mr. R. L. Gaggar -- 5,00,000 85,000 5,85,000Mr. G. L. Sultania -- 5,00,000 1,05,000 6,05,000Mr. Salil Singhal -- 5,00,000 40,000 5,40,000Dr.Y.K.Alagh -- 5,00,000 60,000 5,60,000Mr. Ravinder Nath -- 5,00,000 45,000 5,45,000Mr. Sandeep Kumar -- 60,000 60,000

* Whole time Directors are not entitled or sitting ee.** The remuneration includes Companys contribution to Provided Fund and leave encashment and the same is being paid in accordance with Schedule

XIII o the Companies Act, 1956. The value o perquisites being calculated in accordance with the rules ramed under the Income Tax Act, 1961.The appointments o Mr. Shreekant Somany, Chairman & Managing Director and Mr. Abhishek Somany, Joint Managing Director are contractualor a period o three years which was renewed with e ect rom 1st September, 2011 in respect o Chairman & Managing Director and in respect oJoint Managing Director, with e ect rom 1st June, 2012 .The services o Chairman & Managing Director and Joint Managing Director may be terminated by giving three months notice or alternatively threemonths salary in lieu o notice. No severance ees is payable to them under their respective service agreements entered into by them with the Company.Apart rom sitting ees, the Non-Executive directors are entitled or commission @1% o net pro ts o the Company in terms o resolution passedby the Shareholders o the Company at their Annual General Meeting held on 22nd September, 2008 subject to maximum o Rs, 5,00 ,000/- to eachNon-Executive Director as subsequently approved vide special resolution passed by the shareholders o the Company at their Annual GeneralMeeting held on 16th August, 2010.Mr. Sandeep Kumar was appointed as Nominee Director o Export Import Bank o India, there ore he is not liable to retire by rotation and shall not

be taken into account or computing the number o directors to such retirement.



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GENERAL BODY MEETINGSThe details o general body meeting conducted in the past 3 years:

No Special Resolution was put through postal ballot last year. As o now no Special Resolution is proposed to be conducted through postal ballotat the ensuing Annual General Meeting.

Year Date Time Venue

2012-2013 13th August,2012

11.00 A.M. 44th Annual General Meeting held at H.L Somany Hall, ASSOCHAM, 47 Prithvi Raj Road,New Delhi - 110011

2011-2012 11th August,2011

11.00 A.M. 43rd Annual General Meeting held at H.L Somany Hall, ASSOCHAM, 47 Prithvi Raj Road,New Delhi - 110011

2010-2011 18th March,2011

11.00 A.M. Extra-Ordinary General Meeting held at H.L Somany Hall, ASSOCHAM, 47 Prithvi Raj Road,New Delhi - 110011

2010-2011 30th October,2010

11.00 A.M. Extra-Ordinary General Meeting held at H.L Somany Hall, ASSOCHAM, 47 Prithvi Raj Road,New Delhi - 110011

2010-2011 16th August,2010

11.00 A.M. 42nd Annual General Meeting held at H.L Somany Hall, ASSOCHAM, 47 Prithvi Raj Road,New Delhi - 110011

Special Resolutions passed in the previous three AGMs/EOGMs:Date o Meeting held AGM/EOGM Subject matter o the resolution

13th August, 2012 AGM NIL11th August, 2011 AGM (i) Re-appointment o Mr. Shreekant Somany as Chairman and Managing Director o the Company.

(ii) Re-appointment o Mr. Abhishek Somany as Joint Managing Director o the Company.18th March, 2011 EOGM (i) Authorization or raising Capital.

(ii) Increase in Limit or Investments in Capital o the Company by Foreign Investors.

DISCLOSURESThere were no transactions o material naturebetween the Company and its Directors or

management and their relatives or promotersthat may have a potential confict with theinterests o the Company. Related partytransactions are disclosed in the Notes toAccounts.

There has been no instance o non-complianceby the Company on any matter related tocapital markets and hence the question oimposition o penalties or strictures on the

Company by the Stock Exchanges or SEBI orany statutory authority, does not arise.

The Company complies with all mandatoryrequirements o Clause 49 o the ListingAgreement and one non mandatoryrequirement viz. Remuneration Committee oDirectors.

MEANS OF COMMUNICATIONThe annual, hal yearly and quarterly resultso the Company are generally published inEconomic Times (Delhi, Mumbai), (English

edition), Economic Times (Mumbai (Gujaratiedition)) & Navbharat Times (Hindi edition)newspapers at New Delhi. The results o

the Company are submitted to the StockExchanges in accordance with the ListingAgreements and posted on its website:www.somanyceramics.com. During the yearthe Company has not made any presentationto Institutional investors or analysts.

Management Discussion and Analysis is apart o the Annual Report.



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GENERAL SHAREHOLDERSINFORMATIONRegistered O fce82/19, Bhakerwara Road, MundkaNew Delhi 110 041Phone : 011-28341085, Fax : 011-28341085Email : [email protected]

Plant locationsi) V&P Kassar, Bahadurgarh

Distt. Jhajjar, Haryana - 124507Phone: 01276-241002/3/4/5Fax : 01276-241006/11Email: [email protected]

ii) GIDC Industrial Area,Distt. Mehsana, Kadi,Gujarat - 382715Ph : 02764-242153/54Fax : 02764-263011

Date and Venue o Annual General MeetingAnnual General Meeting o the Company willbe held on Monday, 2nd September, 2013 at10.30 a.m at Laxmipat Singhania Auditorium,at PHD Chamber o Commerce and Industry,PHD House, 4/2, Siri Institutional Area, AugustKaranti Marg, New Delhi-110016.

Financial Calendar: 1st April to 31st MarchFinancial Reporting or 2013-2014 is asollows:First Quarter Fourth week o July, 2013SecondQuarter

Fourth week o October,2013

Third Quarter Fourth week o January,2014

Fourth Quarter Fourth week o May, 2014Book Closure Date17th August, 2013 to 2nd September, 2013

(both days inclusive)

DividendThe Board o Directors o Company hasrecommended a dividend o Rs. 1.20 per shareon equity shares o Rs. 2/- each or the yearended 31st March, 2013 subject to approvalo the Shareholders at the ensuing AnnualGeneral Meeting.

Listing on Stock Exchange:Shares o the Company are listed at NationalStock Exchange o India Limited (NSE) andBombay Stock Exchange Limited (BSE). TheCompany has paid annual listing ees to boththe Exchanges or the fnancial year 2013-2014.

Stock Code :

NSE SOMANYCERABSE 531548Demat ISIN Number orNSDL and CDSL

INE 355A01028

National Stock Exchange o India Limited* The Bombay Stock Exchange Limited*

Month High Rs. Low Rs. No. o SharesTraded

High Rs. Low Rs. No. o SharesTraded

April 2012 48.70 38.10 1,72,028 49.00 39.00 97,914May 2012 48.00 41.00 63,018 47.80 40.95 69,362June 2012 48.10 39.10 57,008 49.70 40.25 38,034July 2012 48.50 40.00 58,634 50.00 40.50 26,650

August 2012 48.95 39.00 91,322 49.00 40.10 39,055September 2012 59.70 41.50 4,19,354 59.70 41.00 2,69,693October 2012 94.70 52.00 25,13,268 93.90 46.00 14,57,281November 2012 95.95 78.10 5,23,498 95.85 78.55 4,23,663December 2012 106.40 86.75 1,50,325 106.70 87.10 1,33,729January 2013 115.00 82.85 2,00,618 114.95 82.00 2,18,873February 2013 88.00 60.90 1,16,697 86.65 61.00 1,71,258March 2013 83.85 59.00 91,399 83.95 61.00 2,00,138

Market Price Data:

*Source : O cial website o BSE and NSE



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Registrar & Share Trans er Agent(Both or physical and demat segment )Maheshwari Datamatics Pvt. Ltd.6, Mangoe Lane, Kolkata 700 001Phone No. 033-2243 5809/2243 5029,Fax No. 033-2248 4787E-mail: [email protected]

Share Trans er systemThe Companys shares are traded on stock exchanges in compulsory demat mode. Shares in physical mode lodged with the Company with validdocuments are trans erred and share certi cates are returned in physical orm within the time prescribed under the Listing Agreement.

Your Company has not issued any GDRs/ADRs/Warrants or any convertible instruments.

Distribution o Shareholding as on 31st March, 2013

Categories o Shareholding as on 31st March, 2013

No. o Equity Shares Number o Shareholders Percentage oShareholders

No. o Shares Percentage oShareholding

1- 500 2,658 62.42 4,82,521 1.40501-1000 722 16.96 577,077 1.671001-2000 326 7.66 5,07,466 1.472001-3000 130 3.05 3,40,069 0.99

3001-4000 69 1.62 2,50,714 0.734001-5000 91 2.14 4,25,886 1.235001-10000 122 2.86 9,03,265 2.6210001 and above 140 3.29 31,010,002 89.89Total 4258 100.00 3,44,97,000 100.00

Category Number o Shares Percent

Indian Promoters 2,18,39,360 63.31

Mutual Funds & UTI 5,71,844 1.66Banks, Financial Institutions, Insurance Companies 92,030 0.26Foreign Institutional Investors 68,550 0.20Corporate Bodies 22,26,515 6.46Indian Public 83,29,383 24.15NRIs/OCBs 13,48,916 3.91Trusts 12,050 0.03Clearing Member 8,352 0.02Total 3,44,97,000 100.00



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Dematerialisation o sharesThe Companys equity shares enjoy the DEMATacilities with NSDL as well as CDSL. Total33575640 Equity shares representing 97.33 othe paid-up capital o the Company as on 31stMarch, 2013 was in demat orm.

Contact or Clarifcation on FinancialStatements: Individuals may contactMr. R.K. Lakhotia, Vice President (Finance) at:

Kassar 124507, BahadurgarhDistt. Jhajjar, Haryana, IndiaPhone : 01276-241001-05Fax : 01276-241006/11Email : [email protected]

Shareholders Enquiries: Individual maycontactMr. Shyamalendu Banerjee at:2, Red Cross Place, Kolkata 700 001Phone : 033-22487406/7Fax : 033-22487045Email : [email protected]

Pursuant to the listing agreement with StockExchanges, the Company has created email-id or the redressal o investor grievances

[email protected].

Declaration on compliance with the Code oConduct:The Company has ramed a speci c Codeo Conduct or the members o the Board oDirectors and Senior Management Personnelo the Company pursuant to Clause 49 o theListing Agreement with Stock Exchanges.All the members o the Board and Senior

Management Personnel have a rmed dueobservation o the said Code o Conduct inso ar as it is applicable to them and there isno non-compliance thereo during the yearended 31st March, 2013.

G.G.TrivediChie Executive O cerPlace : New DelhiDate : 21st May, 2013

As required under Clause 49 o the ListingAgreement, the particulars o the Directorsseeking appointment or re-appointmentMr.Salil Singhal

Aged about 67 years Mr. Singhal holds a B.A(Hons.) degree. He has more than 45 years

o experience in the elds o ne chemicals,agrochemicals, mining and mineral products,metering and energy management. He bringswith him a strong marketing and businessdevelopment ocus to the business. He is wellknown personality in agrochemical businessin India and has been on several committees othe Govt. o India on agriculture and pesticiderelated policies. Mr. Singhal was a membero the Executive Committee o the Federationo Indian Chamber o Commerce andIndustry (FICCI) and the Chairman o FICCIsEnvironment Committee or 5 years. Presentlyhe is Chairman o CII National Council onAgriculture. He is also an active member oCIIs National Environment Council and theCII Task Force on Integrity and Transparencyin Governance. Mr. Singhal has addressedmany con erences and seminars on the

subjects o Indian agriculture, environment,national policies, chemical industry etc. He isalso associated with various social, culturaland educational organizations.

The details o his directorship and membershipin other Companies are given below :

Sl.No.

Name o the Public Limited Companiesin which he is a Director

Chairman/ Director Position held in

Audit Committee Shareholders InvestorGrievance Committee

1 PI Industries Limited Chairman and Managing Director Member2 Secure Meters Limited Chairman -

3 Wolkem India Limited Chairman

4 PILL Finance and Investments Limited Director -

5 Somany Ceramics Limited Director Member

6 Usha Martin Limited Director Member



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Dr. Y.K.AlaghAged about 74 years Dr. Alagh is a noted Indian economist and ormer Union Minister o Government o India, a doctorate in Economics rom theUniversity o Pennsylvania, USA. Recently he has been appointed as the Chancellor o the Central University o Gujarat, Gandhinagar.

Sl.no.

Name o the Public Limited Companies in which he is aDirector

Chairman/ Director Position held in

Audit Committee Shareholders InvestorGrievance Committee

1 Tata Chemicals Limited Director Member Chairman

2 Shree Cement Limited Director Member Member

3 Somany Ceramics Limited Director Member

4 Rallis India Limited Director Member 5 Star Agriwarehousing and Collateral Management Limited Director Member

auditorscertificateWe have audited the compliance o conditionso Corporate Governance procedureimplemented by Somany Ceramics Limitedor the year ended on 31st March, 2013as stipulated in Clause 49 o the listingagreement o the said Company with theStock Exchanges in India.

The compliance o conditions o CorporateGovernance is the responsibility o themanagement. Our examination was limitedto a review o procedures and implementationthereo , adopted by the Company orensuring the compliance o the conditions o

Corporate Governance. It is neither an auditnor an expression o opinion on the nancialstatements o the Company.

We urther state that such compliance

is neither an assurance as to the utureviability o the Company nor the e ciency ore ectiveness with which the management hasconducted the a airs o the Company.

On the basis o our review and according tothe in ormation and explanations given tous, the conditions o Corporate Governanceas stipulated in Clause 49 o the listingagreement with the Stock Exchanges have

been complied with in all material respect bythe Company and that no investor grievance(s)is/are pending or a period exceeding onemonth against the Company as per therecords maintained by the Shareholders/Investors Grievance Committee.

For LODHA & CO.Chartered AccountantsFirm Reg. No. 301051E

N.K.LODHAPlace: New Delhi PartnerDate: 21.05.2013 M.No.85155



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financial sections


Independent Auditors Report

ToThe members o


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The members o

Somany Ceramics LimitedReport on the fnancial statementsWe have audited the accompanying nancial statements o Somany CeramicsLimited,which comprise the balance sheet as at 31stMarch 2013, and thestatement o the pro t and loss and the cash fow statement or the yearthen ended, and a summary o the signi cant accounting policies and otherexplanatory in ormation.

Managements responsibility or the fnancial statementsManagement is responsible or the preparation o these nancial statements thatgive a true and the air view o the nancial position, nancial per ormance and

cash fows o the company in accordance with the accounting principles generallyaccepted in India, including accounting standards re erred to in sub section (3C)o section 211 o the Companies Act, 1956(the Act). This responsibility includesthe design, implementation and maintenance o internal control relevant to thepreparation and presentation o the nancial statements that give a true and airview and ree rom material misstatement, whether due to raud or error.

Auditors responsibilityOur responsibility is to express an opinion on these nancial statements based onour audit. We conducted our audit in accordance with the Standards on Auditingissued by Institute o Chartered Accountant o India. Those standards require thatwe comply with the ethical requirements and plan and per orm the audit to obtainthe reasonable assurance about whether the nancial statements are ree rommaterial misstatements.

An audit involves per orming procedures to obtain audit evidence about theamounts and disclosures in the nancial statements. The procedures selecteddepend on the auditors judgment, including assessment o risks o materialmisstatement o the nancial statements, whether due to raud or error. Inmaking those risk assessments, the auditor considers internal control relevantto the companys preparation and air presentation o the nancial statements inorder to design audit procedures that are appropriate in the circumstances. Anaudit also includes evaluating the appropriateness o accounting policies usedand the reasonableness o the accounting estimates made by the management,as well as evaluating the overall presentation o the nancial statements.

We believe that the audit evidence we have obtained is su cient and appropriateto provide a basis or audit opinion.

OpinionIn our opinion and best to our in ormation and according to the explanationsgiven to us, the nancial statements read together with note no. 2.5 and othernotes thereon, give the in ormation required by Act in the manner so require andgive a true and air view in con ormity with the accounting principles generallyaccepted in India:

a. In the case o the balance sheet, o the state o the a airs o the companyas at 31stMarch 2013,

b. In case o the statement o the pro t and loss, o the pro t or the yearended on that date, and

c. In case o the cash fow statement, o the cash fows or the year endedon that date.

Report on other legal and the regulatory requirements:1. As required by the Companies (Auditors Report) Order, 2003(the Order)

issued by the Central Government o India in terms o sub-section (4A) osection 227 o the Act, we give the Annexure a statement on the, mannersspeci ed in the paragraphs 4 and 5 o the order.

2. As required by section 227(3) o the Act, we report that:

a. We have obtained all the in ormation and explanations which, to thebest o our knowledge and belie , were necessary or the purposes oour audit;

b. In our opinion, proper books o account, as required by law, have beenkept by the Company so ar as appears rom our examination o thosebooks;

c. The Balance Sheet, Statement o Pro t &Loss and Cash Flow Statementre erred to in this report are in agreement with the books o account;

d. In our opinion, the Balance Sheet, Statement o Pro t & Loss and CashFlow Statement re erred to in this report comply with the AccountingStandards re erred to in sub-section(3C) o section211 o CompaniesAct,1956;

e. On the basis o the written representations received rom the Directorsand taken on records by the Board o Directors, we report that none othe directors o the Company is disquali ed as on 31stMarch 2013 rombeing appointed as a Director o the Company in terms o clause (g) osub-section (1) o section 274 o the Companies Act, 1956.

For LODHA & CO.,Firm Registration Number: 301051E

Chartered Accountants

N.K. LODHAPlace:New Delhi PartnerDate:May 21,2013 Membership No: 85155


Annexure referred to in paragraph 1 under the heading Report on other legal and regulatoryrequirements of our report of even dateRe: Somany Ceramics Limited for the year ended 31st March 2013


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1. (a) The company has maintained proper records showing ullparticulars, including quantitative details and situation o xedassets except in case o certain locations where records are inprocess o updation / compilation.

(b) As per the in ormation and explanations given to us, certain xedassets have been physically veri ed by the management accordingto a regular programme o periodic veri cation in a phased mannerwhich in our opinion is reasonable having regard to the size o thecompany and nature o xed assets. The discrepancies noticed onsuch physical veri cation were not material.

(c) As per records and in ormation and explanation given to us, nosubstantial part o xed assets has been disposed o during theyear.

2. (a) As per the in ormation and explanations given to us, the inventories(except stocks with third parties and in transit which have beenveri ed based on subsequent receipt/ reconciliation) have beenphysically veri ed by the management at reasonable intervals.

(b) In our opinion and according to the in ormation and explanationsgiven to us, the procedures o physical veri cation o inventory

ollowed by the management are reasonable and adequate inrelation to the size o the company and the nature o its business.

(c) On the basis o our examination o the records o inventory, we areo the opinion that the company is maintaining proper records oinventory (in respect o process stock records are updated a terphysical veri cation). The discrepancies noticed on such physicalveri cation o inventory as compared to book records were notmaterial which have been properly dealt with.

3. (a) As in ormed to us, the Company has not granted any loan, secured

or unsecured to companies, rms or other parties covered in theregister maintained under Section 301 o the Act. Hence clause (b)to (d) is not applicable. Accordingly we are not able to o er anycomment.

(b) As per the in ormation and records made available, the Companyhas not taken any loans secured or unsecured rom companies,rms or other parties except rom one company covered in theregister maintained under section 301 o the Act. The maximumamount involved during the year is ` 75.00 Lacs and the year endbalance o such loans are ` NIL.

(c) In our opinion, the rate o interest and other terms and conditionso loans taken are not prima acie prejudicial to the interest o theCompany.

(d) In accordance with the in ormation and explanations given to usin respect o the a oresaid loans, there is no as such stipulatedschedule or repayment o principal and interest and the same arerepayable on demand.

4. In our opinion and according to the in ormation and explanations givento us, having regard to the explanations that certain items purchased/sold are o special nature or which, as explained, suitable alternativessources do not exist or obtaining comparative quotations, takingin to consideration the quality, usage and such other actors, thereare adequate internal control systems (read with note no. 2.6 & 2.16)commensurate with the size o the company and nature o its businesswith regard to purchase o inventory, xed assets and or the sale ogoods and services. Further on the basis o examination o the booksand records o the company, carried out in accordance with the generallyaccepted auditing principles in India, and according to the in ormationand explanation given, we have neither come across nor have we beenin ormed o any instance o major weakness in internal control systems

o the company.

5. (a) Based on the audit procedures applied by us and according to thein ormation and explanations provided by the management, weare o the opinion that particulars o contracts or arrangementsre erred to in section 301 o the Act have been entered in the registerrequired to be maintained under that section.

(b) In our opinion and according to the in ormation and explanationsgiven to us, the transactions made in pursuance o such contractsor arrangements (exceeding the value o ` 5 lacs in respect o any

party during the nancial year) have been made at prices which aregenerally reasonable having regard to prevailing market prices atthe relevant time (read with para 4 above).

6. In our opinion and according to the in ormation and explanations givento us, the company has not accepted any deposits rom the public withinthe meaning o section 58A and 58AA or any other relevant provisions othe Act and rules ramed there under. We have been in ormed that noorder has been passed by Company Law Board or National CompanyLaw Tribunal or Reserve Bank o India or any Court or any other Tribunalin this regard.


7. In our opinion, the company has an internal audit system commensurate with the size and nature o its business.


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p , p y y

8. We have broadly reviewed the books o account maintained by the Company pursuant to the Rules made by the Central Government or the maintenanceo cost records under Section 209 (1) (d) o the Act in respect o the Companys products to which the said rules are made applicable and are o the opinionthat prima acie, the prescribed records have been made and maintained. We have however not made a detailed examination o the said records with aview to determine whether they are accurate or complete.

9. (a) According to the records and in ormation made available to us, the company is generally regular in depositing with appropriate authorities undisputedstatutory dues including provident und, investor education and protection und, employees state insurance, income-tax, sales tax, wealth tax,service tax, customs duty, excise duty, cess and other material statutory dues to the extent applicable to it and there are no undisputed statutory duespayable or a period o more than six months rom the date they became payable as at 31st March 2013.

(b) According to the records and in ormation and explanations given to us, there are no dues in respect o income tax, wealth tax, service tax, custom

duty, excise duty and cess that have not been deposited with appropriate authorities on account o disputes and dues in respect o customs duty,excise duty, service tax, local area development tax and sales tax including Turnover tax that have not been deposited with appropriate authoritieson account o disputes and the orum where the dispute is pending are as given below:

Name o Statute Nature o Dues Period to which it relates Amount ` in Lacs

Forum where dispute is pending

Custom Act Custom Duty 1997-1999 5.91 Deputy Commissioner o Customs, (Import) TughlakabadCentral Excise Act Excise duty 1999-2004 317.43 CESTAT, New Delhi

2005-2007 13.04 Commissioner (A), Gurgaon1996-2000 9.33 CCE Appeals, Ahemdabad1994-1995 0.07 Asst. Commissioner, Kalol2002-2003 5.15 Haryana Tax Tribunal, Chandigarh

Sales Tax Act Local AreaDevelopment Tax

2006-2007 60.12 Supreme Court o India2007-2008 76.40 Supreme Court o India2008-2009 89.27 Supreme Court o India2009-2010 93.56 Supreme Court o India2010-2011 59.62 Supreme Court o India2011-2012 60.16 Supreme Court o India2012-2013 73.54 Supreme Court o India

Turnover Tax 1990-1993 45.83 Maharashtra Sales Tax Tribunal , Mumbai2006-2007 52.61 Asst. Commissioner, Ahemdabad2007-2008 28.76 Joint. Commissioner, Commercial Taxes, Bangalore2009-2010 6.33 Deputy Commissioner, Commercial Taxes, Ernakulam

Finance Act Service Tax 2007-2008 0.74 CESTAT, Ahemdabad2007-2009 2.80 Asstt. Commissioner, Rohtak

Income Tax Act* Income Tax 2004-2005 113.79 CIT Appeals, Kolkata2006-2007 5.00 CIT Appeals, Kolkata2008-2009 5.55 CIT Appeals, Kolkata2009-2010 42.51 CIT Appeals, Kolkata2010-2011 63.36 CIT Appeals, Kolkata

* Excluding penalty i any (Re er note no. 2.1)


10. The company does not have accumulated losses as at the end o the 18 According to the in ormation and explanations given to us, the Company


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nancial year and has not incurred cash losses in the current nancialyear and in the immediately preceding nancial year.

11. Based on our audit procedures and on the in ormation and explanationsgiven by the management, the Company has not de aulted in repaymento dues to nancial institution, banks or debenture holders.

12. According to the in ormation and explanations given to us, the Companyhas not granted any loans and/or advances on the basis o security byway o pledge o shares, debentures and other securities.

13. Clause 4 (xiii) o the Order is not applicable to the Company as the

Company is not a chit und or a nidhi / mutual bene t und / society.

14. In our opinion, the company is not dealing in or trading in shares,securities,debentures and other investments. Accordingly Clause 4 (xiv)o the Order is not applicable to the Company.

15 According to the in ormation and explanations given to us, the termsand conditions o

Somany Limited Annual Reprot_2012-13

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