O Partha, this is Brahmi-sthiti (resting in Brahma, the

divine state, life eternal). Having once attained this,

one becomes free from confusion. Remaining steadfast
in that state at the last hour, one attains to divine bliss.

CONTENTS Page No.

Notice 2
Directors' Report 3-5
Balance Sheet 6
Profit and Loss Account 7
Schedules 8-20
Cash Flow Statement 21
Auditors'Report 22-23
Statement Pursuant to Section 212 24
Ten Years Financial Statistics 25
Report and Accounts of Subsidiaries 26-44
Shareholders Information 45-46
Board of Directors
SHRI K. K. BANGUR, Chairman
SHRI BHASKAR MITTER
SHRI P. K. KHAITAN
SHRI SANJIV GOENKA
SHRI NAVIN SUCHANTI
SHRI S. SAMANTA
SHRI T. K. SUBRAMANIAN
SHRI A. RAY
SHRI A. K. JAIN, Executive Director

Secretary
SHRI R. C. LAKHOTIA

Auditors
PRICE WATERHOUSE

Solicitors
KHAITAN & CO.
ORR, DIGNAM & CO.

Bankers
UCOBANK
ALLAHABAD BANK
PUNJAB NATIONAL BANK
STATE BANK OF INDIA
CORPORATION BANK
CANARABANK
AMERICAN EXPRESS BANK LTD.

Registered Office
31, CHOWRINGHEE ROAD,
KOLKATA-700016
NOTICE

NOTICE is hereby given that the 38th Annual General 5. To appoint Auditors and to fix their remuneration
Meeting of the Members of Graphite India Limited and in connection therewith to pass, with or without
will be held at Kala Kunj Auditorium of Sangit modification, the following resolution which will be
Kala Mandir Trust, 48, Shakespeare Sarani, proposed as a Special Resolution :
Kolkata - 700 017 on Monday, the 30th July, 2001 at
10.30 A.M. to transact the following business : "That the retiring Auditors Messrs Price
Waterhouse, Chartered Accountants, be and they
1. To consider and adopt the Profit & Loss Account of are hereby re-appointed as Auditors of the
the Company for the year ended 31st March, 2001 Company, to hold office from the conclusion of this
and the Balance Sheet as at that date together with meeting until the conclusion of the next Annual
the Reports of the Directors and the Auditors General Meeting of the C o m p a n y on such
thereon. remuneration as may be determined by the Board
2. To declare dividend on Preference and Equity of Directors of the Company1'
Shares.
3. To appoint a Director in place of Shri K. K. Bangur By order of the Board
who retires by rotation and being eligible offers
himself for re-appointment. Registered Office :
4. To appoint a Director in place of Shri Navin 31, Chowringhee Road R. C. Lakhotia
Suchanti who retires by rotation and being eligible Kolkata - 700 016 Secretary
offers himself for re-appointment. Dated the 7th May, 2001

NOTES:
1. A member entitled to attend and vote at the meeting is Transportation Ltd., Pressman Advertising &
entitled to appoint a proxy to attend and vote in his stead. Marketing Ltd. and Prima Communications Ltd.
A proxy need not be a member of the Company. 4. Members are requested to notify immediately change in
2. The Register of Members and the Share Transfer Books their address. Pin Code number.
of the Company will remain closed from 17th July, 2001 5. Shareholders, who have not encashed / received their
to 30th July, 2001 (both days inclusive). dividend warrants for the financial years 1995-96, 1996-
3. At the ensuing Annual General Meeting, Shri K. K. 97, 1997-98, 1998-99 and 1999-2000 may approach the
Bangur and Shri Navin Suchanti, Directors retire by Share Department at the Registered Office of the
rotation and being eligible offer themselves for Company for revalidation of the Dividend warrants or
reappointment. As per Clause 49 of the Listing for obtaining duplicate dividend warrants.
Agreement on Corporate Governance, the Company is 6. As per the provisions of Section 205A of the Companies
required to provide a brief resume, expertise and names Act, 1956 the unclaimed Equity dividends for the
of companies in which the proposed Directors hold the financial years upto 1994-95 have been transferred to
Directorship. Accordingly, the information is given below: the General Revenue Account of the Central
A. Shri K. K. Bangur, an Industrialist, aged about 40 Government. Those shareholders who have so far not
years has been a Director of your Company since claimed or collected their dividend for the said financial
1991 and Chairman since 1997. He is a past years may claim the above dividend from the Registrar
President of Indian Chamber of Commerce, Kolkata of Companies, West Bengal, Kolkata, by submitting an
and a Committee Member of Federation of Indian application in the prescribed form.
Chamber of Commerce and Industry, New Delhi. He
7. Pursuant to the provisions of Section 205A of the
is also Chairman of Carbon Everflow Ltd. and
Companies Act, 1956, dividends which remain unpaid
Director of various other companies.
or unclaimed for a period of 7 years will be transferred
B. Shri Navin Suchanti aged about 48 years has been to the Investor Education and Protection Fund (IEPF)}.
a Director of your Company since 1997. He is on the Once the unclaimed dividend is transferred to IEPF as
Board of many Companies such as Sinclair Hotels & above, no claim shall lie in respect thereof.
DIRECTORS' REPORT OPERATIONS
The Directors have pleasure in presenting their 38th Graphite Division
Annual Report together with the audited accounts of the Production of Graphite Electrodes, Anodes and other
Company for the financial year ended March 31, 2001. Miscellaneous Carbon and Graphite Products during the
year under review was 24,838 MT as compared to 20,508
FINANCIAL RESULTS MT in the previous financial year. Both the plants of the
Rs. in lakh Company located at Bangalore and Durgapur worked at
near optimum levels.
2000-2001 1999-2000
Power Division
TURNOVER 23530.00 21705.00 Gross generation of Power was 94.4 Million Units during
Profit for the year after the year under review as compared to 84.12 Million Units
charging all expenses in the previous financial year. This is the highest generation
but before providing recorded so far at both the locations — Chunchankatte
interest, depreciation, and Bangalore Plant.
non-recurring item and tax 5581.71 5023.33 Coke Division
Less: Interest 2397.52 2620.06 The Coke Division of the Company located at Barauni,
Profit before depreciation Bihar, produced 18,484 MT of Calcined Petroleum Coke
and tax 3184.19 2403.27 (CPC) during the year under review as compared to 20,792
MT in the previous financial year.
Less: Depreciation 1088.00 1073.27
Thus, the Company's performance during the year under
Profit before taxation and review may be considered satisfactory.
non-recurring item 2096.19 1330.00
SALES
Less: Payments under
Voluntary Retirement Scheme 80.35 104.03 The Company has achieved a turnover of Rs. 23,530 lakh
during the year under review compared to Rs.21,705 lakh
Profit before taxation 2015.84 1225.97 in the preceding year, registering an increase of 8.41% in
Less: Provision for taxation 100.00 spite of adverse marketing conditions, general economic
slow-down and keen multinational competition.
Profit for the year 1915.84 1225.97
Export Sales were Rs. 14,033 lakh during the year under
Add : Balance brought forward review as compared to Rs. 11,266 lakh during the previous
from the previous year 2564.26 1991.76 year. While export volumes registered an increase of 25%,
Transfer from Debenture the sales realisations were significantly lower. The
Redemption Reserve 1318.00 Company has initiated several cost cutting measures to
improve margins, and would continue its thrust in this
5798.10 3217.73 area. Quality benchmarking against our competitors is
Which has been appropriated continuously pursued. This would enable the Company to
as under : expand its customer base in the existing and newer
geographical territories.
Transfer to Debenture
Redemption Reserve — 356.10
The Company continues to maintain its track record of
being a net foreign exchange earner for the past many
Dividend— years.
12.5% on Preference Shares 82,50 31.67 The domestic demand for the Company's major product -
25% on Equity Shares 301.67 181.00 Graphite Electrodes - has declined steadily. Continuous
Dividend Tax 37.15 23.40 dumping of Graphite Electrodes at prices much below than
that of global market levels by Chinese and other producers
Transfer to General Reserve 61.30 however continue in a significant way.
Balance carried forward 2564.26 Apart from meeting captive needs, Coke Division sold 7,914
5798.10 3217.73 MT of CPC during the year under review compared to
15,402 MT in the preceding financial year. This division
also sold 2,724 MT Carbon Electrode Paste during the
DIVIDEND financial year under review, compared to 868 MT in the
The Directors are pleased to recommend the payment of preceding financial year. This division is expected to
following dividends for the financial year ended March 31, improve its performance in the coming years.
2001 : FUTURE OUTLOOK
12.5% on Redeemable Cumulative Preference Shares of The recent slow down in US economy may affect the
Rs. 100/- each; Company marginally. Since we have been successful in
25% on Equity Shares of Rs. 10/- each. broadbasing our geographical spread as well as our
customer base, our order position continues to be Particulars pursuant to Section 217(2A) of the Companies
comfortable. The strategies adopted by the company in the Act, 1956 read with the Companies (Particulars of
recent years will help us to counter any downward trends Employees) Rules, 1975 and forming part of the Directors'
in the business in any part of the world. The Company is Report for the year ended 31st March, 2001 are given in
fully geared to successfully compete with multinational Annexure £ B'.
pressures and challenges in various countries.
D I R E C T O R S ' R E S P O N S I B I L I T Y STATEMENT
CAPITAL EXPENDITURE Pursuant to the provisions of Section 217(2AA) of the
The Company has initiated a de-bottlenecking exercise, Companies Act, 1956, the Directors state —
which will result in an enhanced capacity of 7,000 MTPA 1. That in the preparation of the Annual Accounts, the
of UHP electrodes at a very low capital cost per tonne. The applicable accounting standards had been followed
capacity of the Power Division is also being augmented by along with proper explanation relating to material
putting up a new 1.5 MW micro-mini hydel plant in the departures.
state of Karnataka. The total capital cost of these two
2. That the Directors had selected such accounting
projects is estimated to be Rs. 48 crores. The above
policies and applied them consistently and made
investments would help the Company to strengthen its
judgement and estimates that are reasonable and
global presence in the coming years.
prudent so as to give a true and fair view of the state
RESEARCH AND DEVELOPMENT of affairs of the Company as at March 31, 2001 and
Concerted efforts continued during the year on new product of the profit of the Company for the year ended March
development, refinement of process technology, optimisation 31, 2001.
of resource usage and quality upgradation. 3. That the Directors had taken proper and sufficient
care for the maintenance of accounting records in
FIXED DEPOSITS safeguarding the assets of the Company and for
The total amount of fixed deposits as on 31st March, 2001 p r e v e n t i n g a n d d e t e c t i n g f r a u d a n d other
was Rs.228.96 lakh. Deposits a m o u n t i n g to irregularities.
Rs. 3.17 lakh (including those retained under legal 4. That the Directors had prepared the annual accounts
obligations) due for repayment remained unclaimed and/or on a going concern basis.
withheld.
DIRECTORS
A U D I T COMMITTEE
Shri K. K. Bangur and Shri Navin Suchanti, Directors of
The Board of Directors of the Company have constituted the Company, retire by rotation and being eligible offer
an Audit Committee comprising of Shri Bhaskar Mitter, themselves for re-appointment.
Shri Navin Suchanti and Shri S. Samanta. The members
of this Committee are all independent Directors. Maj. Gen. A. L. Suri resigned from the Board of Directors
of the Company with effect from 26th April, 2001 and in
LISTING OF EQUITY SHARES the casual vacancy so caused Shri A Ray was appointed as
The Equity Shares of the Company are listed on Calcutta a Director of the Company with effect from 7th May, 2001.
and Mumbai Stock Exchanges and uptodate listing fees The Directors placed on record their appreciation for the
have been paid. valuable advices given by Maj. Gen. A. L. Suri during his
DEMATERIALISATION OK SHARES tenure of office as a Director of the Company.
The Equity Shares of the Company have been notified for AUDITORS
compulsory trading in dematerialised form. M/s Price Waterhouse, Chartered Accountants, Auditors of
GENERAL the Company retire and are eligible for re-appointment.
The observation in the Auditors' Report is dealt with in the ACKNOWLEDGEMENT
Note at the appropriate place in the Accounts. The Directors would like to express their grateful
SUBSIDIARY COMPANIES appreciation for the assistance and cooperation that the
Company has been receiving from the consortium of banks,
As required under Section 212 of the Companies Act, 1956, financial institutions and Government Departments and
the particulars relating to subsidiary companies are agencies at the Central and State levels concerned. The
annexed to the accounts. Directors also thank the employees of the Company at all
INFORMATION PURSUANT TO SECTION 217 OF levels for their diligent, efforts, dedication, cooperation and
THE COMPANIES ACT, 1956 support.
Information in accordance with clause (e) of sub-section (1)
of Section 217 of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in the Report of Board On behalf of the Board
of Directors) Rules, 1988 and forming part of the Directors'
Report for the year ended 31st March, 2001 are given in Kolkata, K. K. BANGUR
Annexure 'A'. Date : 7th May, 2001 Chairman
ANNEXURE TO THE DIRECTORS' REPORT
ANNEXURE - A
Particulars pursuant to Section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 forming part of the Directors* Report.

A. CONSERVATION OP ENERGY
a) Energy Conservation measures taken — Future Plan of Action :
Reduction in electrical load by systematic load relocation and — Scaling up and commercialization of new products;
modification in the existing system; — Development of high strength isotropic iso moulded graphite
Energy savings by modification of graphitisation furnaces; for high tech applications.
Installation of a new energy efficient Boiler; Expenditure on R&D : (Rs. in lakhs)
Installation of area specific compressed air system units in place Recurring 58.13
of single plant compressor. R&D Expenditure on Percentage of total Turnover 0.25
Use of sludge of 6 MW DG in Banking furnace firing;
Installation of a 66/11 KV transformer with On load Tap Changer
to overcome the prevailing low voltage in the KPTCL grid supply; b) TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION
Installation of SCADA system to help monitoring and controlling Efforts made:
furnace input; For Effective absorption and improvement of the technologies,
Optimisation of lighting in all areas; the Company has taken up R&D projects in association with
Use of energy efficient lamps in place of ordinary luminaries; several Government Research Institutions. This is expected
De-sooting and de-scaling of boilers to reduce heat loss. to give tangible results, which will lead to the development
of new technologies and new products.
b) Additional measures proposed to be taken —
Installation of new energy efficient LWG furnace; LWG furnaces were modified to enhance graphitisation
Improvement in design of Baking furnace to reduce furnace oil process parameters.
comsumption; Benefits:
Installation of variable speed drive for Baking furnaces. Development of higher diameter graphite electrodes;
c) Impact of measures of (a) & (b) above - Improved productivity; ,,
Reduction in specific energy consumption levels at many stages Development of new grades of the product
of production. Technology imported during the last 5 years :
Riedhammer Baking Furnace technology;
B. TECHNOLOGY ABSORPTION ESP (Electrostatic precipitator) technology for furnace
a) RESEARCH AND DEVELOPMENT exhaust control
Specific areas in which R&D was carried out : Power generation using Diesel Generator.
— Design and Process development for manufacturing micron
size graphite super fines; C. FOREIGN EXCHANGE EARNINGS AND OUTGO
— Development of technology for making carbon-carbon
composites; (Rs. in lakhs)
— Development of process technology for manufacture of Earnings 13318
impregnating pitch in a pilot plant, Outgo 4546

Benefits derived : On behalf of the Board

— Introduction of new product grades;
— Improvement in quality of product; Kolkata, K. K. BANGUR
— Import substitution. Date : 7th May, 2001 Chairman

ANNEXURE-B
Information as per Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 and forming
part of the Directors' Report for the year ended 31st March, 2001
Name and Age Designation/ Remuneration/ Date of Commencement Previous Employment
of the Employees Nature of Duties Salary Qualification of Employment/ (Years)
(Rs.) Total Experience

Jain, A.K. 57 Executive Director 18,24,601 B. Chem. Engineering 16.10.1965 36

Notes: Remuneration has been calculated on the basis of Section 198 of the Companies Act, 1956. Conditions of employment are contractual.
The above employee is not related to any Director of the Company.

On behalf of the Board

Kolkata, K. K. BANGUR
Date : 7th May, 2001 Chairman
BALANCE SHEET
as at 31st March, 2001 SCHEDULE As at 31st As at 31st
March,2001 March, 2000
Rs. Rs.
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
CAPITAL 170,669,260 170,669,260
RESERVES AND SURPLUS 1,389,868,914 1,238,'416,764
1.560,538,174 1,409,086,024
LOAN FUNDS
SECURED LOANS 1,525,329,714 1,516,738,563
UNSECURED LOANS 22,896,000 72,081,633
1,548,225,714 1,588,820,196
TOTAL 3,108,763,888 2,997,906,220
APPLICATION OF FUNDS
FIXED ASSETS
Gross Block 2,511,734,210 2,477,672,920
Less: Depreciation 665,333,770 559,295,422
Net Block 1,846,400,440 1,918,377,498
Capital Advances/Work-in-Progress - at cost 7,082,485 6,121,092
Machinery Spares 2,567,672 3,648,686
1,856,050,597 1,928,147,276
INVESTMENTS 345,272,704 345,275,704
CURRENT ASSETS, LOANS AND ADVANCES
Inventories 1 617,880,583 587,887,801
Sundry Debtors 8 455,116,962 387,160,585
Cash and Bank Balances 9 10,492,124 30,554,708
Other Current Assets 10 8,923,391 11,000,129
Loans and Advances 11 273,778,159 141,743,327
1,366,191,219 1,158,346,550
Less : CURRENT LIABILITIES AND PROVISIONS
Liabilities 12 401,177,937 433,111,942
Provisions 13 69,889,144 5,636,264
471,067,081 438,748,206
NET CURRENT ASSETS 895,124,138 719,598,344
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted)
Payments under Voluntary Retirement Scheme 12,316,449 4,887,896
TOTAL 3,108,763,888 2,997,906,220
CAPITAL COMMITMENTS (Net of Advances)
Estimated amount of contracts remaining to be executed 13,927,001 1,355,155
NOTES ON ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES 29
This is the Balance Sheet referred to The Schedules referred to above form an
in our report of even date integral part of the Balance Sheet
P. K. NANDY
Partner
For and on behalf of
PRICE WATERHOUSE K. K. BANGUR
Chartered Accountants Chairman
K. C. PARAKH R. C. LAKHOTIA A. K. JAIN
Kolkata : 7th May, 2001 Vice President-Finance Secretary Executive Director
PROFIT AND LOSS ACCOUNT
for the year ended 31st March, 2001 SCHEDULE Year ended Year ended
31st March,2001 31st March,2000
Rs. Rs.
INCOME
Sales/Income from operations 19 2,608,642,282 2,379,217,432
Other Income 14 33,254,833 65,190,414
2,641,897,115 2,444,407,846
EXPENDITURE
Raw Materials Consumed 20 819,208,545 712,666,225
Payments to and Provisions for Employees 15 232,379,661 212,140,131
Other Manufacturing, Selling and
Administrative Expenses 16 876,202,788 678,913,886
Excise Duty 117,561,013 143,380,084
(Increase)/Decrease in Stocks 17 38,374,169 194,973,961
2,083,726,176 1,942,074,287
PROFIT BEFORE INTEREST AND DEPRECIATION 558,170,939 502,333,559
Interest 18 239,751,955 262,006,333
PROFIT BEFORE DEPRECIATION 318,418,984 240,327,226
Depreciation 108,800,595 107,326,420
PROFIT BEFORE TAXATION AND NON-RECURRING ITEM 209,618,389 133,000,806
Payments under Voluntary Retirement Scheme 8,034,358 10,403,455
PROFIT BEFORE TAXATION 201,584,031 122,597,351
Provision for Taxation 10,000,000
PROFIT AFTER TAXATION 191,584,031 122,597,351
Balance brought forward from earlier year 256,425,736 199,175,702
Transfer from Debenture Redemption Reserve 131,800,000
PROFIT AVAILABLE FOR APPROPRIATION 579,809,767 321,773,053
TRANSFER TO
Debenture Redemption Reserve 35,609,750
General Reserve 280,000,000 6,129,868
Dividend - on Equity Shares - Interim 18,100,389
-Final 30,167,315
- on 12.5% Preference Shares 6,250,000 3,167,808
Dividend Tax 3,714,566 2,339,502
Balance carried forward 259,677,886 256,425,736
579,809,767 321,773,053
NOTES ON ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES 29
The Schedules referred to above together with Schedules 21 to 27
form an integral part of the Profit and Loss Account

K. K. BANGUR
Chairman
K. C. PARAKH R. C. LAKHOTIA A. K. JAIN
PRICE WATERHOUSE Vice President-Finance Secretary Executive Director
 As at 31st
March,2000
Rs, Rs.
1. CAPITAL
Authorised
30,000,000 Equity Shares (Previous year 20,000,000) of Rs.10/- each 300,000,000 200,000,000
500,000 Redeemable Preference Shares of Rs.100/- each 50,000,000 50,000,000
350,000,000 250,000,000

Issued, Subscribed and Paid-up

12,066,926 Equity Shares of Rs, 10/- each fully paid-up 120,669,260 120,669,260
500,000 12.5 % Redeemable Cumulative Preference
Shares of Rs. 100A each 50,000,000 50,000,000
170,669,260

Notes :
a. Of the above Equity Shares, 2,337,500 Shares have been allotted as fully paid
up Bonus Shares by capitalisation of General Reserve and 100,000 Equity Shares
have been allotted as fully paid up pursuant to a contract without payment
being received in cash.
b. 12.5% Redeemable Cumulative Preference Shares are redeemable at par in two
annual instalments commencing from 29th September, 2002.

As at 31st Additions Withdrawals As at 31st

March, 2000 during the during the March, 2001
—
year year
Rs. Rs. Rs.

2. RESERVES AND SURPLUS

Capital Reserve 2,581,326 — — 2,581,326
Capital Redemption Reserve 5,000,000 — — 5,000,000
Share Premium Account 368,874,194 — — 368,874,194
Debenture Redemption Reserve 198,550,000 18,750,000 150,550,000 66,750,000
General Reserve 406,985,508 280,000,000 — 686,985,508
Profit and Loss Account 256,425,736 3,252,150 — 259,677,886
1,238,416,764 302,002,150 150,550,000 1,389,868,914
 As at 31st
March,2000
Rs. Rs.
3. SECURED LOANS
15% Secured Redeemable Non-Convertible Debentures
of Rs. 100/- each, (face value of Rs. 100/- each) 150,000,000 150,000,000

18% Privately Placed Secured Redeemable Non-Convertible

Debentures of Rs. Nil each, (face value of Rs. 1007- each) 6,500,000

17% Secured Redeemable Non-Convertible Debentures

of Rs. 67/- each, (face value of Rs. 100/- each) 20,630,171 315,552,300

Rupee Term Loan from Financial Institutions 613,677,000 336,500,100

Rupee Term Loan from Financial Institutions under

Asset Credit Scheme/Production Equipment
Finance Programme 19,696,250 95,744,324

Foreign Currency Loan from Financial Institutions

Long Term 181,338,838 237,517,156

Short Term (Repayable within one year) 51,634,000

External Commercial Borrowings from —

American Express Bank Limited 89,292,000

The Sakura Bank, Limited 98,122,500

Working Capital Term Loan from

Export-Import Bank of India 50,000,000

Loan/Overdraft from Banks 133,908,381

Hire Purchase Liability 1,201,802

(Repayable within one year Rs. 558,228/-
Previous year Rs. 701,915/-)

Loan from a Company 2,400,000 2,400,000

1,525,329,714 1,516,738,563

Notes:
1. Nature of Security
(a) 15% and 18% Redeemable Non-Convertible Debentures are secured/to be secured by way of first mortgages/charges
over all immovable properties, both present and future and also by way of hypothecation of the company's movable
assets (except book debts and certain specific assets), both present and future, in favour of trustees for respective
debentureholders ranking pari-passu with the mortgages/ charges created and/or to be created in favour of the
existing first chargeholders, subject to prior charges created/to be created in favour of Export-Import Bank of India
and Company's bankers on specific movable assets for working capital requirements.
3. SECURED LOANS (Contd.)

(b) 17% Redeemable Non-Convertible Debentures are secured by way of second/subservient mortgages/charges over
the present and future immovable properties at Durgapur and Bangalore plants and Hydel Power plant at
Chunchanakatte in the district of Mysore subject to mortgages/charges already created/to be created in favour of
financial institutions/banks.
(c) Rupee Term Loan other than Corporate Loan from financial institutions and External Commercial Borrowing from
American Express Bank Limited are secured/ to be secured by way of first mortgages/ charges over all immovable
properties, both present and future, and also by way of hypothecation of the company's movable assets (except book
debts and certain specific assets), both present and future, ranking pari-passu with the mortgages/ charges created
and/or to be created in favour of the existing first chargeholders subject to prior charges created/to be created in
favour of Export-Import Bank of India and Company's bankers on specific movable assets for working capital
requirements.
Corporate Rupee loan of Rs.300,000,000/- from financial institution is secured by way of second/subservient mortgage
over all immovable properties and by way of hypothecation of Company's all movable assets, both present and
future, subject to prior charges created/to be created in favour of the existing first chargeholders.
(d) Rupee Term Loan from financial institutions under Asset Credit Scheme/ Production Equipment Finance Programme
are secured by an exclusive charge by way of hypothecation of specific assets.
(e) Foreign Currency Loan from financial institutions and External Commercial Borrowing from The Sakura Bank,
Limited are secured by way of first mortgages/charges over immovable properties both present and future, and also
by way of hypothecation of movable assets (except book debts and certain specific assets), both present and future,
situated at Bangalore plant, Hydel Power plant at Chunchanakatte in the district of Mysore, Durgapur plant in
West Bengal and Barauni plant in Bihar, ranking pari-passu with mortgages/charges created and/or to be created
in favour of the existing first, chargeholders subject to prior charges created/to be created in favour of Export-
Import Bank of India and Company's bankers on specific movable assets for working capital requirements.
(f) Working Capital Term Loan from Export-Import Bank of India is secured by way of hypothecation of certain
movable assets of the company, both present and future, ranking pari-passu with the charges created and/to be
created in favour of Company's bankers for working capital requirements and also secured by way of second charge
on other movable assets of company subject to prior charges created/to be created in favour of financial institutions/
banks and further to be secured by way of second charges/ mortgages on all fixed assets of the company, both
present and future, ranking pari-passu with other working capital lenders.
(g) Loan/Overdraft from Banks are secured by hypothecation of stocks and book debts.
(h) Hire Purchase liability is secured by an exclusive charge by way of hypothecation of specific assets.
(i) Loan from a company is secured by pledge of equity shares of a company.

2. Terms of Redemption
(a) 15% Secured Redeemable Non-Convertible Debentures are redeemable in two equal annual instalments commencing
from 19th September, 2002.
(b) 17% Secured Redeemable Non-Convertible Debentures are redeemable in two annual instalments becoming due
on 30th September, 2001 and 2002. During the year the Company has purchased and cancelled to the extent of
2,847,610 Debentures.

10
 As at 31st As at 31st
March,2001 March,2000
Rs.
4. UNSECURED LOANS
Fixed Deposits 22,896,000 21,194,000
(Maturing within one year Rs. 4,062,000/-
Previous year Rs. 1,938,000/-)
Working Capital Term Loan from Export-Import
Bank of Iridia — 50,000,000
Hire Purchas e Liability — 887,633

22,«96,000 72,081,633

5. FIXED ASS1ETS
GROSS BLOCK -AT COST DEPRECIATION NET BLOCK
DESCRIPTION
As at 31st Additions/Adjust- Sales/Adjust- Aflat 31st UptoSlst UptoSlst AsatSlst As at 31st
March, ments during ments during Much, March, For the On Sales/ March, March, March,
2000 the year the year 2001 2000 Year Adjustments 2001 2001 2000
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Freehold Land 12,045,055 - - 12,045,055 - - - — 12,045,055 12,045,055
Leasehold Land 2,859,752 - - 2,859,752 660,866 40,438 701,304 2,158,448 2,198,886
Buildings 423,121,636 10,383,062 1,448,240 432,056,458 73,657,958 13,660,261 217,716 87,100,503 344,955,955 349,463,678
Plant and Machinery 1,834,366,469 28,930,142 9,234,565 1,854,062,046 427,004,470 83,591,327 2,152,598 508,443,199 1,345,618,847 1,407,361,999
Electrical Installation
and Fittings 139,657,881 864,490 140,522,371(a) 32,999,025 6,172,004 - 39,171,029 101,351,342 106,658,856
Office Equipment 19,205,818 1,866,155 11,814 21,060,159 9,573,769 2,207,447 6,258 11,774,958 9,285,201 9,632,049
Furniture and Fittings 31,574,772 620,146 33,773 32,161,145 10,675,327 1,680,879 30,247 12,325,959 19,835,186 20,899,445
Vehicles 14,841,537 2,988,232 862,545 16,967,224 4,724,007 1,448,239 355,428 5,816,818 11,150,406 10,117,530
2,477,672,920 45,652,227(b) 11,590,937 2,511,734,21(Kc} 559,295,422 108,800,595 2,762,247 665,333,770 1,846,400,440 1,918,377,498
Previous Year 2,420,337,095 61,151,618 3,815,793 2,477,672,920 454,541,250 107,326,420 2,572,248 559,295,422
Add :Capital Advances/
Work-in-Progress - at cost 7,082,485 6,121,092
Machinery Spares (d) 2,567,672 3,648,686
1,&56,050,597 1,928,147,276

Notes:
(a) Include Rs.628.19 Lakhs being expenditure in respect of Outdoor Transmission Line not owned by the Company. (Previous year Rs.628.19 Lakhs)
(b) Include Rs.200.55 Lakhs (Previous year Rs.111.65 Lakhs) being adjustments in rupee equivalent oflong term loans arising from change in exchange rates.
(c) Gross Block includes Rs, 47.03 Lakhs (Previous year Rs. 51.93 Lakhs) assets purchased under Hire Purchase scheme.
(d) Amortisation of machinery spares amounting to Rs. 10.81 Lakhs is included with Stores and Spare parts consumed in Schedule 16.

11
 Face As at 31st As at 31st
Value March,2001 March.2000
Rs. Ra. Rs.
6. LONG TERM INVESTMENTS—
AT COST OR UNDER
TRADE
QUOTED
FULLY PAID EQUITY SHARES IN-
Carbon Everflow Limited 312,219 10 7,017,649 7,017,649
OTHER THAN TRADE
QUOTED
FULLY PAID EQUITY SHARES IN-
Industrial Development Bank of India 10,720 10 857,935 857,935
(4,020 shares allotted as bonus shares
during the year)
UNQUOTED
FULLY PAID EQUITY SHARES IN
SUBSIDIARY COMPANIES
Graphite Holdings Limited 4,000,000 10 40,000,000 40,000,000
Graphite Investments Limited 4,000,000 10 40,000,000 40,000,000
Ragini Finance Limited 240,000 10 2,400,000 2,400,000
FULLY PAID UP ZERO COUPON DEBENTURES
IN SUBSIDIARY COMPANIES
Graphite Holdings Limited 1,274,500 100 127,450,000 127,450,000
Graphite Investments Limited 1,242,850 100 124,285,000 124,285,000
OTHERS
QUOTED
Units of Morgan Stanley Growth Fund 100,000 10 604,080 604,080
UNQUOTED
Units 1964 Scheme of Unit Trust of India 203,280 10 2,658,040 2,658,040
345,272,704 345,272,704
AGGREGATE AMOUNT OF INVESTMENT :
Quoted 8,479,664 8,479,664
Unquoted 336,793,040 336,793,040
345,272,704 345,272,704
AGGREGATE MARKET VALUE OF QUOTED INVESTMENTS
dENTS 6,093,748 8,762,837
REPURCHASE PRICE OF UNITS 1964 SCHEME IN
UNIT TRUST OF INDIA 2,866,248 2,978,052

7. INVENTORIES — AT LOWER OF COST AND

NET REALISABLE VALUE
Stores and Spare Parts 52,538,607 38,390,468
Loose Tools 3,291,121 3,704,029
Raw Materials 157,594,029 102,962,309
Work-in-process 282,251, 305,085,468
Finished Goods 137,745,527
587,887,801

12
 As at 31st As at 31st
March,20Ql March,2000
Rs. Rs.
8. SUNDRY DEBTORS
Unsecured
Debts outstanding for a period
exceeding six months -
Considered Good 11,292,724 35,287,321
Considered Doubtful 3,643,841
Other Debts
Considered Good 443,824,238 348,229,423
455,116,962 387,160,585

9. CASH AND BANK BALANCES

Cash in hand 628,452 965,348
With Scheduled Banks -
On Current Accounts 9,483,918 13,844,757
On Unpaid Dividend Accounts 379,754 744,603
On Fixed Deposit Account 15,000,000
10,492,124 30,554,708

10. OTHER CURRENT ASSETS

Unsecured - Considered Good
Security and Other Deposits
Deposit with Karnataka Power
Transmission Corporation Limited 7,417,730 8,800,050
Others (Including Rs.50,000/-in Post Office 1,505,661 1,263,422
Savings Bank Account - lodged with Excise Authority)
Dividend Receivable 936,657
8,923,391 11,000,129

11. LOANS AND ADVANCES

Unsecured - Considered Good
Advances recoverable in cash or in kind
or for value to be received * 93,984,852 63,545,411
Accrued Export Entitlement 179,793,307 78,197,916
273,778,159 141,743,327
* Includes —
Debts due by an officer of the Company 3,500
Maximum amount due by him at any time during the year 3,500 21,500

13
 As at 31st As at 31st
_
March,2001 March,2000

12. LIABILITIES
Acceptances * 79,165,581 95,233,846
Sundry Creditors —
Small Scale Units 281,826 3,204,682
Others 290,741,046 276,604,678
Interim Dividend and Tax thereon 20,091,432
Unclaimed and Unpaid Dividend 379,754 744,603
Interest accrued but not due on loans 30,609,730 37,232,701
401,177,937 433,111,942
* Secured by way of hypothecation of stocks
and book debts in favour of Company's Bankers 39,329,906 85,043,622

13. PROVISIONS
Taxation (Net of payments) 29,757,263 5,636,264
Proposed Dividend 36,417,315
Dividend Tax 3,714,566
69,889,144 5,636,264

2000 - 2001 1999 - 2000

Rs. Rs.
14. OTHER INCOME
Dividend on Long term Investments from
Trade Investments 702 5,332,368
Other than Trade Investments 400,110 500,178
Interest on loans, deposits and others * 5,187,876 2,699,558
Sales Tax Incentive 12,944,007 12,480,077
Rent Receipt 3,353,127 1,662,720
Liabilities no longer required
written back 5,519,938 15,227,099
Profit on sale of Investment — 9,385,307
Profit on sale of Fixed Assets (Net) 1,459,735 15,340,828
Miscellaneous Receipts 4,389,338 2,562,279
33,254,833 65,190,414
* Includes tax deducted at source 72,699 158,778

15. PAYMENTS TO AND PROVISIONS FOR EMPLOYEES

Salaries, Wages and Bonus 173,289,374 156,467,650
Contribution to Provident and Pension Funds 12,313,363 11,938,176
Contribution to Superannuation Fund 1,360,223 903,341
Contribution to Gratuity Fund 9,099,405 8,297,087
Staff Welfare Expenses 36,317,296 34,533,877
232,379,661 212,140,131

14
 2000 - 2001 1999 - 2000
Rs. Rs.
16. OTHER MANUFACTURING, SELLING AND
ADMINISTRATIVE EXPENSES
Stores and Spare parts consumed 219,051,040 168,581,754
Power, Electricity and Water Charges 326,129,040 254,926,009
Repairs and Maintenance —
Plant and Machinery 12,436,589
Buildings 3,499,581
Others 4,607,889
Rent 1,436,046
Lease Rent 6,156,595
Rates and Taxes 6,829,285
Insurance 7,721,639
Commission to Selling Agents 25,310,504
Travelling and Conveyance 14,888,802
Directors' Remuneration (other than Executive Director) 94,000
Auditors' Remuneration —
Audit Fee 288,750 288,750
Tax Audit Fee 63,000 63,000
Other Matters 152,250 139,125
Out of Pocket expenses 27,952 40,111
Freight and Transport 22,624,061 18,153,537
Contribution to Graphite Export Development Trust 5,875,569 4,596,849
Export Freight and Forwarding Expenses 109,102,544 86,180,066
Bank Charges 14,435,548 12,125,681
Sales Tax 2,805,200 3,966,928
Communication Expenses 6,745,801 5,972,629
Membership and Subscription 1,284,269 1,334,346
Printing and Stationery 2,422,619 2,150,743
Premium on Redemption of Debentures 1,625,000
Bad Debts/Advances Written off 3,713,819 102,604
Exchange Loss (Net) 2,577,679 746,713
Miscellaneous Expenses 43,637,084 36,564,111
876,202,788 678,913,886

17. (INCREASE)/DECREASE IN STOCKS

(WORK-IN-PROCESS AND FINISHED GOODS)
Work-in-Process
Closing stock 282,251,896 305,085,468
Deduct: Opening stock 305,085,468 359,324,190
22,833,572 54,238,722
Finished Goods
Closing stock 122,204,930 137,745,527
Deduct: Opening stock 137,745,527 278,480,766
15,540,597 140,735,239
38,374,169 194,973,961

15
 2000 - 2001 1999 - 2000
Rs. Rs.
18. INTEREST ON
Debentures 48,856,902 80,477,600
Fixed Loans 145,401,482 129,681,580
Others 45,493,571 51,847,153
239,751,955 262,006,333

2000 - 2001 1999-2000

M.T. Rs. M.T. Rs.
19. SALES/INCOME FROM OPERATIONS
Sales including excise duty
Graphite Electrodes, Anodes and
Miscellaneous Graphite Products 24,768 2,126,279,270 22,411 1,898,107,690
Carbon Paste 5,121 68,653,738 2,932 35,948,755
Grafoke - 65 and other residues 5,567 5,499,994 4,649 4,997,172
Calcined Petroleum Coke 7,914 59,502,070 15,402 106,965,190
Electricity (MU) 23 83,864,250 30 101,239,620
Others 1,554 9,175,470 4,210 23,230,252
2,352,974,792 2,170,488,679
Subsidy from Graphite Export
Development Trust 5,551,760 8,048,524
Processing Charges 25,317,938 11,378,945
Export Entitlement 224,797,792 189,301,284
2,608,642,282 2,379,217,432

20. RAW MATERIALS CONSUMED

R.P.Coke 25,612 113,879,959 32,494 121,237,185
C.P.Coke 16,085 413,576,192 15,644 381,660,372
Pitch 10,282 182,680,269 7,964 125,004,605
Extrusion Oil (Kilo Litres) 196 3,963,950 144 2,150,061
Furnace Oil (Kilo Litres) 10,022 101,891,627 8,829 77,237,471
Others 4,008,189 5,376,531
820,000,186 712,666,225
Less: Materials Capitalised 791,641
819,208,545 712,666,225

2000 - 2001 1999 - 2000

Rs. Rs.
21. C.I.F. VALUE OF IMPORTS -
Raw Materials 374,340,045 277,874,907
Components and Spare parts 1,323,058 395,396
Capital Goods 195,393
22. COUNT'OF-
EXPENDITURE IN FOREIGN CURRENCY ON ACCOUNT OF
Travelling 4,900,709 3,037,634
Commission 45,382,016 24,693,079
Membership and Subscription 47,851 177,894
Export Sales Expenses 4,481,032 2,326,577
Interest 18,203,421 24,591,659
Others 4,273,487 46,757
23. EARNINGS IN FOREIGN CURRENCY -
Export of Goods on F.O.B. Basis 1,331,847,647 1,109,417,652

16
 2000 - 2001 1999 - 2000
Rs.
24. CONSUMPTION OF -
a) Raw Materials
Imported 447,520,400 55 398,710,652 56
Indigenous 371,688,145 45 313,955,573 44
819,208,545 100 712,666,225 100
b) Stores and Spares
Imported 743,937 1 1,785,882 1
Indigenous 218,307,103 99 166,795,872 99
219,051,040 100 168,581,754 100

25. AMOUNT REMITTED IN FOREIGN CURRENCY -

2000 - 2001 1999 - 2000
For 1999-2000 For 1998-1999
On account of Dividend excluding
payments to mandatees in India Rs. 1,629,563 Rs. 2,715,938
Number of shares held by Non-Resident
Shareholders in respect of which
dividends were remitted 1,086,375 1,086,375
Number of Non-Resident Shareholders 2 2

26. PARTICULARS REGARDING CAPACITY,

PRODUCTION AND STOCKS -
2000 - 2001 1999 - 2000
M.T. M.T.
i) Capacity per annum as approved by
Central Government -
Graphite Electrodes, Anodes and
Miscellaneous Graphite Products 30,000 30,000
Carbon Paste 15,000 15,000
Nuclear Graphite 3,162 3,162
Grafoke-65 and other residues Not applicable Not applicable
C.P.Coke Not applicable Not applicable
Electricity (MU) Not applicable Not applicable

ii) Installed Capacity per annum -

(As certified by Company's Technical Expert)
Graphite Electrodes, Anodes and
Miscellaneous Graphite Products 21,900 21,900
Carbon Paste 19,800 19,800
Grafoke-65 and other residues No Separate No Separate
capacity capacity
C.P.Coke 25,000 25,000
Electricity (MU) 83 83

17
 26. PARTICULARS REGARDING CAPACITY, 2000-2001 1999-2000
PRODUCTION AND STOCKS (Contd.) M/E M.T. ~~
iii) Actual production/Generation —
Graphite Electrodes, Anodes and
Miscellaneous Graphite Products 24,838 20,508
Carbon Paste 4,716 2,651
Grafoke-65 and other residues* 5,660 4,687
C.P.Coke * 18,484 20,792
Others 1,554 4,210
Electricity (MU)* 85 78

* Includes Captive consumption —

Grafoke-65 and other residues 15
C. P. Coke 10,570 5,390
Electricity (MU) 64 50

2000 - 2001 1999 - 2000

M.T. Rs. M.T. Rs.
iv) Opening Stock —
Graphite Electrodes, Anodes and
Miscellaneous Graphite Products 2,551 126,689,129 4,454 262,248,989
Carbon Paste 779 8,671,867 1,060 11,802,683
Grafoke-65 and other residues 98 210,313 60 128,482
Electricity (MU) 2 2,174,218 4 4,300,612
137,745,527 278,480,766
v) Closing Stock —
Graphite Electrodes, Anodes and
Miscellaneous Graphite Products 2,621 116,883,482 2,551 126,689,129
Carbon Paste 374 4,784,389 779 8,671,867
Grafoke-65 and other residues 176 379,361 98 210,313
Electricity (MU) 157,698 2 2,174,218
122,204,930 137,745,527

27. COMPUTATION OF NET PROFITS UNDER SECTION 198 READ WITH SECTION 309 OF THE
COMPANIES ACT, 1956 FOR THE PURPOSE OF COMMISSION PAYABLE TO THE EXECUTIVE
DIRECTOR AND OTHER DIRECTORS
Rs. Rs.
Profit before taxation and non-recurring item
as per Profit and Loss Account 209,618,389
Add : Managerial Remuneration 3,990,601
Less : Profit on sale of Fixed Assets (1,316,280)
Net Profit under Section 198 212,292,710
DIRECTORS' REMUNERATION
Executive Director
Salary 504,000
Commission @ 5% of Rs. 212,292,710 = 10,614,635
Restricted to maximum amount payable 700,000
Contribution to Provident and other Funds 192,730
Other benefits 427,871 1,824,601
Other Directors
Sitting fees 66,000
Commission® l%ofRs. 212,292,710 = 2,122,927
Restricted to maximum amount payable 2,100,000 2,166,000
Total for the year 3,990,601

18
28. BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

REGISTRATION DETAILS
State Code 21
Registration No. 25560
Balance Sheet Date 31st March,2001

2. CAPITAL RAISED DURING THE YEAR (AMOUNT IN RUPEES)

Public Issue Nil
Rights Issue Nil
Bonus Issue Nil
Private Placement Nil

3. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (AMOUNT IN RUPEES)

Total Liabilities * 3,579,830,969
Total Assets 3,579,830,969
Sources of Funds
Paid-up Capital 170,669,260
Reserves and Surplus 1,389,868,914
Secured Loans 1,525,329,714
Unsecured Loans 22,896,000
Application of Funds
Net Fixed Assets 1,856,050,597
Investments 345,272,704
Net Current Assets 895,124,138
Miscellaneous Expenditure 12,316,449
Accumulated Losses Nil

* Includes Owners' Funds — Rs. 1,560,538,174

4. PERFORMANCE OF COMPANY (AMOUNT IN RUPEES)

Turnover (including Other Income) 2,641,897,115
Total Expenditure 2,440,313,084
Profit before Tax 201,584,031
Profit after Tax 191,584,031
Earning per Share in Rs. 15.31
Dividend Rate % 25

5. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS/SERVICES OF COMPANY

(AS PER MONETARY TERMS)
Item Code No.(ITC Code) 854519.01
Product Description Graphite Electrodes
Item Code No.(ITC Code) 380130.00
Product Description Carbonaceous Paste for Electrodes
and similar Pastes for Furnace Linings
Item Code No.(ITC Code) 271312.00
Product Description Calcined Petroleum Coke

19
 29. NOTES ON ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES
(a) Contingent Liabilities not provided for in respect of :
— Claims against the Company not acknowledged as debts Rs. 5,222,0707- (Previous year Rs. 5,163,3507-)
— Bills discounted Rs. 157,342,3067- (Previous year Rs. 176,773,1037-)
(b) The Company has not provided for diminution in the value of long term strategic investments made in its sub-
sidiary companies since in the opinion of the management such diminution in value is temporary in nature
considering the inherent value, nature of these investments and the investee's assets.
(c) Provision for tax has been made in these accounts under Minimum Alternate Tax (MAT) as per related provisions
of the Income-tax Act, 1961.
(d) Research and Development Expenditure of revenue nature is Rs. 5,813,1777- (Previous year Rs. 6,477,9817-)
(e) Previous year's figures have been re-arranged and re-grouped wherever necessary.
(f) SIGNIFICANT ACCOUNTING POLICIES:
FIXED ASSETS are stated at cost of acquisition and subsequent improvements thereto. Interest accrued during
construction period on borrowing to finance fixed assets is capitalised.
The cost of fixed assets, acquisition of which is financed by foreign currency loans, are adjusted so as to show the
liabilities for these loans, to the extent they are not covered by forward contracts, at the rates of exchange pre-
vailing at the end of the accounting period or otherwise.
DEPRECIATION on fixed assets including those utilised in RESEARCH AND DEVELOPMENT activities, is
provided on straight line basis which are in conformity with the requirements of the Companies Act, 1956. Lease-
hold land and other assets whose actual cost exceeds Rs. 5,000/- leased out to third parties are amortised over the
lives of the respective leases.
FIXED ASSETS on lease whose actual cost does not exceed Rs.5,000/- each have been fully depreciated and the
resultant excess charge on following this method has been carried forward through lease terminal account for
being amortised over the period of lease.
MACHINERY SPARES which are irregular in use and associated with particular asset are treated as Fixed
Asset and the cost is amortised over a period of its utility period.
INVESTMENTS are stated at cost and diminution in value thereof is taken care of by making adequate provi-
sion.
EARNINGS FROM INVESTMENTS, where appropriate, are accrued or taken into revenue in full on declaration
or receipts and the tax deducted at source thereon is treated as advance tax.
INVENTORIES are valued at lower of cost and net realisable value with cost being determined under weighted
average formula.
FOREIGN CURRENCY BALANCES at the year-end are translated at the appropriate forward contract or year-
end rates and the resultant translation differences are dealt with in Profit and Loss Account except those relating
to acquisition of Fixed Assets which are capitalised or otherwise.
TRANSACTIONS IN FOREIGN CURRENCIES to the extent not covered by forward contracts, are accounted for
at exchange rates prevailing at the time when proceeds are realised7payments are made.
REVENUE is recognised on completion of sale of goods and rendering of services.
REVENUE EXPENDITURE on RESEARCH AND DEVELOPMENT(R&D) is recognised in the year in which it
is incurred. Capital expenditure on R&D is capitalised.
RETIREMENT BENEFITS are provided for in the books of account and payments are made to the Trustees of
the Company's respective Funds or to the related authorities of the Government on the basis of actuarial valua-
tion where appropriate. Provisions are also made for leave encashment based on actuarial valuation.
Payments under Voluntary Retirement Scheme are expensed over the periods during which the benefits are
estimated to accrue.
CONTINGENCIES which can be reasonably ascertained are provided for, if in the opinion of the Company, there
is probability that the future outcome may be materially detrimental to the Company.
MATERIAL EVENTS occurring after the Balance Sheet date are taken into congnisance.

Schedules 1 to 29 form part of the accounts signed.

K. K. BANGUR
Chairman
K. C. PARAKH R. C. LAKHOTIA A. K. JAIN
PRICE WATERHOUSE ylce President-Finance Secretary Executive Director

20
 CASH FLOW STATEMENT PREPARED PURSUANT TO CLAUSE 32 OF LISTING
AGREEMENT FOR THE YEAR ENDED 31ST MARCH, 2001
(Rs.in thousand)
2000-2001 1999-2000
Cash Plow from Operating Activities
Net Profit before tax and non-recurring item 209,618 133,001
Adjustments for:
Depreciation 108,800 107,326
Amortisation of Machinery Spares 1,081 912
Foreign Exchange 2,320 (1,782 )
Investment Income (4_
01) (5,832)
Profit on sale of long term investments (9,385)
Interest expense 239,752 262,006
Interest income (5,188) (2,700)
Profit on sale of Fixed Assets (1,460) (15,341 )
Bad Debts/Advances written off 3,714 103
Liability no longer required written back (5,520) (15,227)
Provisions 940 1,113
Operating Profit before working capital changes 553,656 454,194
Adjustments for:
Trade and other receivables (205,574) (44,528)
Inventories (29,993) 210,197
Trade payables 8,146 (103,818)
Cash generated from operations 326,235 516,045
Direct taxes refund / (paid) 15.362 (1.773)
Cash flow before non-recurring item 341,587 514,272
Payment under Voluntary Retirement Scheme (15,462) . (6,024)
NET CASH FROM OPERATING ACTIVITIES 326,125 508,248
B. Cash flow from Investing Activities
Purchase of Fixed Assets (31,866) (84,241 )
Sale of Fixed Assets 3,308 16,585
Sale of Investments 37,474
Interest received —
5,115 1,322
Dividend received 1,338 4,895
NET CASH USED IN INVESTING ACTIVITIES (22,105) (23,965)
C. Cash flow from Financing Activities
Proceeds from issuance of share capital 50,000
Proceeds from borrowings
Long term 353,49a 260,549
Short term 217,481 100,000
Repayment of borrowings
Long term (528,226) (328,512)
Short term (100,000) (247,211)
Interest paid (246,375) (259,169)
Dividend paid (including tax thereon Rs. 1,991 previous year - Rs. 3,667) (20.4S6) (36,534)
NET CASH USED IN FINANCING ACTIVITIES - (324,083) (460,877)
NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C) (20,063) 23,406
CASH AND CASH EQUIVALENTS - OPENING BALANCE 30,556 7,149
CASH AND CASH EQUIVALENTS - CLOSING BALANCE 10,492 30,555
Note: The above Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard - 3 on Cash Flow Statements
issued by the Institute of Chartered Accountants of India.
K.K.BANGUR
Chairman
Place : Kolkata K. C. PARAKH R. C. LAKHOTIA A. K. JAIN
Date : 7th May, 2001 Vice President-Finance Secretory Executive Director

AUDITORS' CERTIFICATE
The above Cash Flow Statement has been compiled from and is based on the audited accounts of Graphite India Limited for the year ended 31st March, 2001
reported upon by us on 7th May, 2001. According to the information and explanations given together with Note thereon, the aforesaid Cash Flow Statement has
been prepared pursuant to Clause 32 of Listing Agreements with Stock Exchanges and the reallocations required for the purpose are as made by the Company.

P. K. NANDY
Partner
For and on behalf of
Place : Kolkata PRICE WATERHOUSE
Date : 7th May, 2001 Chartered Accountants

21
AUDITORS'RKPORT the year by the management and no material
discrepancies between the book records and the
To the members of Graphite India Limited physical inventory have been noticed.

1. We report that we have audited the Balance Sheet of (ii) The fixed assets of the Company have not been
Graphite India Limited as at 31st March, 2001 signed revalued during the year.
by us under reference to this report and the relative Profit
and Loss Account for the year ended on that date, which (iii) The stocks of finished goods, stores, spare parts and
are in agreement with the books of account. raw materials of the Company at all its locations
have been physically verified by the management
2. In our opinion and to the best of our information and during the year.
according to the explanations given to us, the Balance
Sheet and the Profit and Loss Account, together with the (iv) In our opinion, the procedures of physical
notes thereon and attached thereto and the Statement verification of stocks followed by the management
on Significant Accounting Policies, give in the prescribed are reasonable and adequate in relation to the size
manner, the information required by the Companies Act, of the Company and nature of its business.
1956 of India (the 'Act')and also give respectively, subject
to note (b) on Schedule 29 regarding diminution in the (v) The discrepancies between the physical stocks and
value of its investments, if any, with corresponding effects the book stocks which have been properly dealt with
on the profit for the year and the year-end Net Assets, the in the books of account were not material.
extent of which is not ascertainable at this stage, a true
and fair view of the state of the Company's affairs as at (vi) In our opinion, the valuation of stocks of finished
31st March, 2001 and its profit for the year ended on goods, stores, spare parts and raw materials has
that date. been fair and proper in accordance with the normally
accepted accounting principles and is on the same
3. We have obtained all the information and explanations basis as in the earlier year.
which to the best of our knowledge and belief were
necessary for our audit. In our opinion, proper books of (vii) In our opinion, the rate of interest and the terms
account have been kept as required by law so far as and conditions of loan, secured or unsecured, taken
appears from our examination of those books. by the Company from a company listed in the
register maintained under Section 301 of the Act,
4. In our opinion, these accounts have been prepared in are not prima facie prejudicial to the interest of the
compliance with the applicable Accounting Standards Company.
referred to in Section 211(3C) of the Act.
(viii) The Company has not granted any loans secured or
5. Based on representations made by all the Directors of unsecured to companies, firms or other parties listed
the Company which was taken on record by the Board of in the register maintained under Section 301 of the
Directors of the Company and the information and Act.
explanations as made available, Directors of the Company
do not have any disqualification as referred to in clause (ix) The parties (including employees) to whom loans
(g) of sub-section (1) to Section 274 of the Act. or advances in the nature of loans have been given
by the Company are repaying principal amount as
6. As required by the Manufacturing and Other Companies stipulated and are regular in payment of interest
(Auditor's Report) Order, 1988 dated 7th September, 1988 where applicable.
issued by the Central Government of India and on the
basis of such checks as we considered appropriate and (x) In our opinion, there is an adequate internal control
according to the information and explanations given to procedure commensurate with the size of the
us, we further report that : Company and the nature of its business, for
purchase of stores, raw materials including
(i) The Company has maintained proper records to components, plant and machinery, equipment and
show full particulars including quantitative details other similar assets and for the sale of goods.
and situation of its fixed assets. The fixed assets of
the Company have been physically verified during (xi) In our opinion, purchase of goods and materials and

22
 sale of goods, materials and services made in (xix) During the course of our examination of the books
pursuance of contracts or arrangement entered in of account carried out in accordance with the
the register maintained under Section 301 of the generally accepted auditing practices in India, we
Act and aggregating during the year Rs.50,000/- or have not come across any personal expenses which
more in value in respect of each party have been have been charged to the Profit and Loss Account,
made at prices which are reasonable having regard nor have we been informed of such case by the
to the prevailing market prices for such goods, management other than those payable under
materials or services or the price at which the contractual obligations or in accordance with
transactions for similar goods or services have been accepted business practices.
made with other parties.
(xx) The Company is not a sick industrial company
(xii) The Company has a system of determining within the meaning of clause (o) of Section 3(1) of
unserviceable or damaged stores, raw materials and the Sick Industrial Companies (Special Provisions)
finished goods on the basis of technical evaluation Act, 1985 of India.
and on such basis, in our opinion, adequate amounts
have been written off such stocks in the accounts. (xxi) In respect of services rendered -

(xiii) In the case of public deposits accepted by the (a) In our opinion, the Company has a reasonable
Company, the directives issued by the Reserve Bank system of recording receipts, issues and
of India and the provision of Section 58A of the Act consumption of materials and stores and
and the rules framed thereunder where applicable, allocating materials and stores consumed to
have been complied with. the relative jobs, commensurate with its size
and nature of its business.
(xiv) In our opinion, reasonable records have been
maintained by the Company for the sale and (b) In our opinion, the Company has a reasonable
disposal of realisable scrap where applicable and system of allocating manhours utilised to the
significant. The Company has no by-products. relative jobs, commensurate with its size and
nature of its business.
(xv) In our opinion, the Company's present internal
audit system is commensurate with its size and (c) In our opinion, there is a reasonable system
nature of business. of authorisation at proper levels with
necessary controls on the issue of stores and
(xvi) The Central Government of India has not prescribed allocation of stores and labour to various jobs
the maintenance of cost records by the Company and the related system of internal control of
under Section 209(l)(d) of the Act for any of its the Company is commensurate with the size
products. of the Company and the nature of its business.

(xvii) The Company has regularly deposited during the

year Provident Fund and Employees' State
Insurance dues with the appropriate authorities in
India.
P. K. Nandy
(xviii) At the last day of the financial year there was no Partner
amount outstanding in respect of undisputed
For and on behalf of
income-tax, sales tax, customs duty, wealth-tax and
excise duty which were due for more than six Kolkata, PRICE WATERHOUSE
months from the date they became payable. Date : 7th May, 2001 Chartered Accountants

23
 1. Name of Subsidiary Company : Graphite Holdings Graphite Investments Ragini Finance
Limited Limited Limited

2. The Financial year of

Subsidiary Company : 31st March, 2001 31st March, 2001 31st March, 2001

3. Holding Company's Interest : Entire paid-up equity Entire paid-up equity Entire paid-up equity
share capita! of 40,00,000 share capital of 40,00,000 share capital of
equity shares of Rs.10/- equity shares of Rs.10/- 2,40,000 equity
each fully paid-up each fully paid-up shares of Rs.lO/- each
fully paid-up
4. (a) Net aggregate amount of Profit/
(Loss) of the subsidiary company
so far as it concerns the members
of the Company not dealt with
in the accounts of the Company
(i) for subsidiary Company's
above financial year Rs. 25,25,802 Rs. 32,82,973 Rs. 13,99,681
(ii) for previous financial
years of the subsidiary
since it became subsidiary
of the Company Rs. 1,14,85,175 Rs. 10,01,996 Rs. (24,37,431)

(b) Net aggregate amount of Profit

of the subsidiary company
dealt with in the account of
the Company
(i) for the subsidiary Company's
above financial year —
(ii) for previous financial
years of the subsidiary
since it became subsidiary
of the Company Rs. 62,10,526 Rs. 66,83,342 Rs. 33,44,283

K. K. BANGUR
Chairman
K. C. PARAKH R. C. LAKHOTIA A. K. JAIN
Kolkata : 7th May, 2001 Vice President-Finance Secretary Executive Director

24
 TEN YEARS FINANCIAL STATISTICS IN RETROSPECT
(Rupees in lacs)

Particulars 20004)1 1999-2000 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-98 1991-92

Sales
(excluding excise duty) 22,356 20,406 18,484 18,801 15,186 13,254 9,818 8,721 7,576 6,945
Operating Profit 5,248 4,371 5,050 3,890 2,556 2,052 1,124 1,236 753 796
Other Income 333 652 240 241 357 574 666 77 271 285
Interest 2,397 2,620 2,556 1,883 1,196 615 506 424 363 332
Gross Profit 3,184 2,403 2,734 2,248 1,717 2,011 1,284 889 661 749
Depreciation 1,088 1,073 953 618 423 288 195 277 210 174
_
Provision for Taxation 100 150 140 169 — 10 92 245
—
Profit before Non-
Recurring Item 1,996 1,330 1,631 1,490 1,125 1,723 1,089 602 359 330
_
Non-Recurring Item 80 r 104 84 75 — — — —
—
Profit After Tax 1,916 1,226 1,547 1,415 1,125 1,723 1,089 602 359 330
Equity Dividend per Share (Rs.) 2.50 1.50 2.50 2.50 2.50 4.00 3.50 3.00 2.50 2.50
Equity Dividend Amount (Incl.
Dividend Tax) 332 201 335 332 299 329 169 126 105 105
EPS Basic (Rs.) 15.31 9.87 12.82 11.73 9.33 19.30 18.86 14.31 8.54 7.84
Debt Equity Ratio (Long Term
Liabilities) 0.77:1 1:1 1.09:1 1.29:1 1.10:1 0.74:1 0.94:1 1.75:1 0.54:1 0.56:1
Debt Equity Ratio (All Liabilities) 1.38:1 1.53:1 1.93:1 2.14:1 1.75:1 1.42:1 1.63:1 3.24:1 2.08:1 1.71:1

Particulars 2000-01 1999-2000 1998-99 1997-98 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92

Fixed Assets 18,561 19,281 19,838 19,160 15,822 10,602 5,992 3,362 2,003 1,506
Investments 3,453 3,453 3,734 3,751 3,778 2,459 1,036 357 316 221
Current Assets 13,662 11,583 13,030 12,349 8,756 7,130 8,257 7,646 4,550 3,618
Total Assets 35,676 34,317 36,602 35,260 28,356 20,191 15,285 11,365 6,869 5,345
Loan Funds 15,482 15,888 17,961 17,632 13,777 7,849 6,726 6,022 2,543 1,755
Current Liabilities 4,711 4,387 6,132 6,389 4,273 3,993 2,739 2,665 2,099 1,618
Share Capital —Equity 1,207 1,207 1,207 1,207 1,207 893 578 421 421 421
— Preference 500 500 — — — — —
— — —
Reserves and Surplus 13,776 12,335 11,302 10,032 9,099 7,456 5,242 2,257 1,806 1,551
Net Worth 14,983 13,542 12,509 11,239 10,306 8,349 5,820 2,678 2,227 1,972
Total Liabilities 35,676 34,317 36,602 35,260 28,356 20,191 15,285 11,365 6,869 5,345

Number of Employees 1,423 1,497 1,524

25
DIRECTORS' R E P O R T
The Directors present their Annual Report together with the 2001 and of the profit of the Company for the year ended March
audited Accounts of the Company for the year ended 31st March, 31, 2001.
2001 which shows a profit of Rs. 2,525,802/-. After providing 3. That the Directors had taken proper and sufficient care for the
Rs. 240,0007- for Income Tax and taking into account the credit maintenance of accounting records in safeguarding the assets
balance of Rs. 11,479,348/- brought forward from the previous of the Company and for preventing and detecting fraud and
year, the credit balance of Rs. 14,005, ISO/- is being carried forward. other irregularities.
The Company's business does not entail consumption of energy, use 4. That the Directors had prepared the annual accounts on a going
of technology and foreign exchange earnings and outgo. As such, no concern basis.
particulars are required to be disclosed pursuant to the Companies General
(Disclosure of Particulars in the Report of Board of Directors) Rules, The observation in the Auditors' Report is dealt with in the Note at
1988. the appropriate place in the Accounts.
The Company has not accepted public deposits.
Directors
Directors' Responsibility Statement Shri S. Chaudhary retires by rotation and being eligible offers
Pursuant to the provisions of Section 217(2AA) of the Companies himself for re-appointment.
Act, 1956, the Directors state-
1. That in the prepartion of the Annual Accounts, the applicable
accounting standards bad been followed along with proper ^i/s' Lakhotia & Co., Chartered Accountants, Aud.tors of the
explanation relating to material departures. Company, also retire and are eligible for re-appointment.
2. That the Directors had selected such accounting policies and On behalf of the Board
applied them consistently and made judgement and estimates
that are reasonable and prudent so as to give a true and fair Kolkata, K.K. BANGUR
view of the state of affairs of the Company as at March 31, Date : 30th April, 2001 Chairman
B A L A X C K S M K K T Vs AT 'HS'i M A K i f i . ->00 i
SCHEDULE As at 31st As at 31st
March, 2001 March, 2000
SOURCES OF FUNDS Rs. Rs.
SHAREHOLDERS' FUNDS
Capital 1 40,000,000 40,000,000
Reserves and Surplus 2 14,005,150 11,479,348
54,005,150 51,479,348
LOAN FUNDS
Unsecured Loans 3 127,450,000 127,450,000
TOTAL 181,455,150 178,929,348
APPLICATION OF FUNDS
INVESTMENTS 4 158,546,836 153,260,268
CURRENT ASSETS, LOANS AND ADVANCES
Sundry Debtors 5 10,260,993 10,260,993
Cash and Bank Balances 6 12,384,705 12,356,445
Other Current Assets 7 1,805 2,738,262
Loans and Advances 8 265,011 317,580
22,912,514
Less :
CURRENT LIABILITIES AND PROVISIONS
Liabilities 9 4,200 4,200
4,200 4,200
NET CURRENT ASSETS 25,669,080
TOTAL 178,929,348
NOTES ON ACCOUNTS AND ACCOUNTING POLICIES 14
The Schedules referred to above form an integral part of the Balance Sheet.
This is the Balance Sheet
referred to in our report of even date.
For LAKHOTIA & CO. K. K. BANGUR
Chartered Accountants A. K. JAIN
S. R. MUNDRA
Kolkata, NARESH LAKHOTIA S. CHAUDHARY
Date ; 30th April, 2001 Partner Directors

26
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2001

SCHEDULE For the year ended For the year ended

31st March, 2001 31st March, 2000
Rs. Rs.
INCOME
Profit on Sale of Investments 1,627,632
Dividend on -
Trade Investments 5,795,217
Other than Trade Investment 911,243
Interest 10 1,171,095 1,468,653
Miscellaneous Receipts 64,568
2,863,295 8,175,113
EXPENDITURE
Loss on sale of Investments 1,359,629
Administrative and Other Expenses 11 97,493 64,468
97,493 1,424,097
PROFT BEFORE TAXATION 2,765,802 6,751,016
Provision for Income Tax 240,000 5,200
PROFIT FOR THE YEAR 2,525,802 6,745,816
Balance brought forward from earlier year 11,479,348 4,733,532
Balance carried forward 14,005,150 11,479,348

NOTES ON ACCOUNTS AND ACCOUNTING POLICIES 14

The Schedules referred to above form an integral part of the Profit and Loss Account.

As per our report of even date annexed.

For LAKHOTIA & CO. K. K. BANGUR
Chartered Accountants A. K. JAIN
S. R. MUNDRA
Kolkata NARESH LAKHOTIA S. CHAUDHARY
Date : 30th April, 2001 Partner Directors

SCHEDULES ANNEXED TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH, 2001
As at 31st As at 31st
March,
! 2001
March, 2000
ST Rs.
1. CAPITAL
Authorised
4,000,000 Equity Shares of Rs. 10/- each 40,000,000 40,000,000

Issued, Subscribed and Paid-up

4,000,000 Equity Shares of Rs. 10/- each fully paid up in cash 40,000,000 40,000,000
40.000,000 40,000,000
2. RESERVES AND SURPLUS
Profit and Loss Account —
Credit Balance as per annexed Profit and Loss Account 14,005,150 11,479,348
14,OQ=5,160 11,479,348
3. UNSECURED LOANS
1,274,500 Zero Coupon Unsecured Debentures of Rs. 100/- each 127,460,000 127,450,000
127,460,000 127,450,000

27
 As at 31st March, 2001 As at 31st, March 2000
Face
Value Number Amount Number Amount
Rs~ Rs. RsT
4. LONG TERM INVESTMENTS—AT COST
Trade
Quoted
Fully paid up Equity Shares in -
Guardian Leasing Limited 10 365,000 3,650,000 365,000 3,650,000
The Emerald Company Limited 10 100,150 11,718,250 100,150 11,718,250
The Bond Company Limited 10 43,837 7,336,000 43,837 7,336,000
Likhami Leasing Limited 10 921,400 14,805,650 921,400 14,805,650
Carbon Everflow Limited 10 898,703 27,699,855 898,703 27,699,855
GKW Limited 10 428,800 19,233,364 428,800 19,233,364
Gujarat Composite Limited 10 — 82,666 —
—
Unquoted
Fully paid up Equity Shares in -
H.L. Investment Company Limited 10 66,464 3,834,468 66,464 3,834,468
Fully paid up Unsecured Zero Coupon
Optionally Convertible Debentures in -
GKW Cement Limited 19.50 2,564,103 50,000,009 2,564,103 50,000,009
Other than Trade
Unquoted - Units of -
Birla Income Plus Growth plan 10
— — 133,155 2,000,000
Prudential ICICI Income Plan - Growth 10 171,781 2,269,240 1,084,821 10,982,672
Prudential ICICI Liquid Plan 10
— 180,613 2,000,000
HDFC Income Fund - Growth
—
5,000,000
10 500,000
Reliance Monthly Income Plan — Growth 10 200,000 2,000,000
Kothari Pioneer Income Builder Growth 10 390,370 6,000,000
Kotak Mahindra K Bond (Whole Sale
Plan) Growth 10 441,930 5,000,000

158,546,836 153,260,268
Aggregate amount of Investments -
Quoted 84,443,119 84,443,119
Unquoted 74,103.717 68,817,149
158,546,836 '153,260,268
Aggregate market value of quoted Investments 30,382,097 37,914,702

5. SUNDRY DEBTORS
Unsecured — Considered Good
Debts outstanding for a period exceeding six months 10,260,993 10,260,993
10,260,993 10,260,993
6. CASH AND BANK BALANCES
Balance with Scheduled Bank
on Current Account 11,524,030 6,005,771
on Fixed Deposit Account (See Note C in Schedule-15) 860,675 6,350.674
12,384,705 12,356,445
7. OTHER CURRENT ASSETS
Dividend Receivable 2,696,109
Interest Receivable 1,805 42,153
1,805 2,738,262

28
 As at 31st As at 31st
March, 2001 March. 2000
Rs. Rs.
8. LOANS AND ADVANCES
Income Tax Advance - (Net of Provisions) 265,011 312,580
Advance Recoverable in cash or in
kind or for value to be received 5,000
265,011 317,580
9. LIABILITIES
Sundry Creditors 4,200 4,200
4,200 4,200

For the year ended For the year ended

31st March, 2001 31st March, 2000
_
Rs7
10. INTEREST ON
Term Deposits with Bank* 869,967 171,201
Inter Corporate Deposits* 295,976
Income Tax Refunds 211 27,606
Others* 300,917 973,870
1,171,095 1,468,653
* Tax deducted at Source 193,352 317,780

11. ADMINISTRATIVE AND OTHER EXPENSES

- Filing Fees 3,000 860
Directors' Fees 3,000 3,000
Legal and Professional Charges 76,175 1,700
Professional Tax 2,500 2,500
Auditors' Remuneration -
Audit Fee 4,200 4,200
Tax Audit Fee 3,150 3,150
Other Matters 1,050
Sales Tax for earlier years 21,494
Miscellaneous Expenses 4,418 27,564
97,493 64,468

For the year ended For the year ended

31st March, 2001 31st March, 2000
Number Rs. Number Rs.
12. PARTICULARS REGARDING PURCHASES,
SALES AND STOCKS
Equity Shares
Opening Stock 3,165,353 93,596,947
Purchases/Allotment
Sales
Transfer to Investments 3,165,353 93,596,947
Closing Stock

Debentures
Opening Stock 2,564,103 50,000,009
Purchases/Subscriptions
Transfer to Investments 2,564,103 50,000,009
Closing Stock

29
 13. BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
1. REGISTRATION DETAILS
State Code 21 Registration No. 21-93033
Balance Sheet Date 31st March, 2001
2. CAPITAL RAISED DURING THE YEAR (AMOUNT IN RUPEES THOUSANDS)
Public Issue Nil Rights Issue Nil
Bonus Issue Nil Private Placement Nil
3. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS (AMOUNT IN RUPEES THOUSANDS)
TOTAL LIABILITIES 181,459* TOTAL ASSETS 181,459
Sources of Funds
Paid-up Capital 40,000 Reserves and Surplus 14,005
Secured Loans Unsecured Loans 127,450
Application of Funds
Net Fixed Assets Investments 158,547
Net Current Assets 22,908 Miscellaneous Expenditure
Accumulated Losses
* includes owners' fund — 54,005
PERFORMANCE OF COMPANY (AMOUNT IN RUPEES THOUSANDS)
Turnover 2863 Total Expenditure 97
(Including other income)
Profit before Tax 2766 Profit after Tax 2526
Earning per Share in Rs. 0.63 Dividend Rate %
5. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS / SERVICES OF COMPANY (AS PER MONETARY TERMS)
Item Code No. (ITC Code) Not Applicable
Product Description Not Applicable

14. NOTES ON ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES

(a) The entire share capital is held by Graphite India Limited, the holding company and its nominees.
(b) 5,70,500 and 7,04,000 Zero Coupon Unsecured Debentures of Rs. 100/- each shall at the option of the Company exercised at
any time before the expiry of ten years and five years respectively from their respective dates of allotment be fully convertible
into Equity Shares of the Company on such terms as may be mutually agreed between the Company and the Debentureholders.
The Debentures in respect of which option for conversion is not exercised shall be redeemed at par at the expiry of such period.
Of the above Debentures 7,04,000 Debentures are duo for redemption/conversion within one year from the date of this
Balance Sheet.
(c) The Company has not provided for diminution in the value of long term investments since in the opinion of the management
such diminution in value is temporary in nature considering the inherent value, nature of these investments and the
investee's assets.
(d) Previous year's figures have been regrouped and/or rearranged wherever necessary.
(e) SIGNIFICANT ACCOUNTING POLICIES
These accounts have been prepared on historical cost convention and Income and Expenditure have been recognised on
accrual basis.
Investments are stated at cost. Provision for diminution in the value, other than temporary, shall be made.
Dividend income is accounted for in the year in which the same is declared by the respective Company.
Interest Income is accounted for on accrual basis.

Signature to Schedules 1 to 14
For LAKHOTIA & CO. K. K. BANGUR
Chartered Accountants A. K. JAIN
S. R. MUNDRA
Kolkata, NARESH LAKHOTIA S. CHAUDHARY
Date : 30th April, 2001 Partner Directors

30
 B ^^•^^•^r i^^MMH

AUDITORS' REPORT
To the Shareholders of GRAPHITE HOLDINGS LIMITED checks of the books and records of the Company, as we
We have audited the attached Balance Sheet of Graphite considered appropriate and the information and explanations
Holdings Limited as at 31st March, 2001 and its Profit and given to us during the course of our audit, we report below
Loss Account for the year ended on that date and report on the matters specified in Paragraph 4 of the said order to
that: the extent to which the said order is applicable to the
Company :
1) We have obtained all the information and explanations
which to the best of our knowledge and belief, were i) The Company has taken unsecured loans from
necessary for the purpose of our audit. companies listed in the register maintained under
Section 301 of the Companies Act, 1956 and the
2) In our opinion, proper books of account as required by rate of interest and other terms and conditions of
the Companies Act, 1956 have been kept by the Company such loans are prima facie not prejudicial to the
so far as it appears from our examination of those books. interest of the Company.
3) The Balance Sheet and Profit and Loss Account dealt ii) The Company has not accepted deposits from the
with by this report are in agreement with the books of public.
account.
iii) The Company has an internal audit system
4) In our opinion, the Balance Sheet and the Profit and commensurate with its size and nature of its
Loss Account dealt with by this report are in compliance business.
with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956. iv) There were no undisputed amounts payable in
respect of Income Tax, Wealth Tax, Sales Tax,
5) On the basis of written representations received from Customs Duty and Excise Duty outstanding as at
the Directors and taken on record by the Board of 31st March, 2001 for a period of more than six
Directors, we report that none of the Directors is months from the date they became payable.
disqualified as on 31st March, 2001 from being appointed
as a director in terms of clause (g) of sub-section (1) of v) No personal expenses have been charged to revenue
Section 274 of the Companies Act, 1956. account.

6) In our opinion and to the best of our information and vi) The Company is not a sick industrial company
according to the explanations given to us the said within the meaning of clause (o) of sub-section (1)
accounts subject to Note (c) in Schedule 14 regarding of Section 3 of the Sick Industrial Companies
dimunition in the value of investments the extent of which (Special Provisions) Act, 1985.
is not ascertainable at this stage and read together with vii) The Company has maintained proper records of
the significant accounting policies and other notes the transactions and contracts in respect of
forming part thereof give the information required by Investments and timely entries have been made
the Companies Act, 1956 in the manner so required and therein. All the shares, securities, debentures and
give a true and fair view - other investments are held by the Company in its
own name.
a) in the case of the Balance Sheet of the state of
affairs of the Company as at 31st March, 2001 and
b) in the case of the Profit and Loss Account of the
Profit of the Company for the year ended on that For LAKHOTIA & CO.
date. Chartered Accountants
As required by the Manufacturing and other Companies Kolkata, NARESH LAKHOTIA
(Auditor's Report) Order, 1988 and on the basis of such Date : 30th April, 2001 Partner

31
 and prudent so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2001 and of the profit of the Company for
The Directors present their Report together with the audited Accounts of the year ended March 31, 2001.
the Company for the year ended 31st March, 2001 which shows a profit of 3. That the Directors had taken proper and sufficient care for the
Rs. 35,92,973. After providing Rs. 3,10,000 for Income Tax and taking into
account the credit balance of Rs. 10,01,996 brought forward from the maintenance of accounting records in safeguarding the assets of the
previous year, there remains a credit balance of Rs. 42,84,969 which is Company and for preventing and detecting fraud and other irregularities.
being carried forward. 4. That the Directors had prepared the annual accounts on a going concern
The Company's business does not entail consumption of energy, use of basis.
technology and foreign exchange earnings and outgo. As such, no particulars GENERAL
are required to be disclosed pursuant to the Companies (Disclosure of The observation in the Auditors' Report is dealt with in the Note at the
Particulars in the Report of Board of Directors) Rules. 1988. appropriate place in the Accounts.
The Company has not accepted public deposits. DIRECTORS
DIRECTORS' RESPONSIBILITY STATEMENT Shri S. K. Majeji retires by rotation and being eligible offers himself for
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956. re-appointment.
the Directors state — AUDITORS
1. That in the preparation of the Annual Accounts, the applicable accounting M/s. Lakhotia & Co., Chartered Accountants, Auditors of the Company,
standards had been followed along with proper explanation relating to also retire and are eligible for re-appointment.
material departures. On behalf of the Board
2. That the Directors had selected such accounting policies and applied Kolkata K. K. BANGUR
them consistently and made judgement and estimates that are reasonable Date : 30th April 2001 Chairman

SCHEDULE As at 3lst As at 31st

___
March, 2001 March, 2000
RsT
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Capital 40,000,000 40,000,000
Reserves and Surplus 4,284,969 1,001,996
44,284,969 41,001,996
LOAN FUNDS
Unsecured Loans 124,285,000 124,285,000
124,285,000 124,285,000

TOTAL 168,569,969 165,286,996

APPLICATION OF FUNDS
INVESTMENTS 141,830,032 135,248,309
CURRENT ASSETS, LOANS AND ADVANCES
Sundry Debtors 10,260,993 10,260,993
Cash and Bank Balances 16,434,957 16,040,711
Other Current Assets 2,002 3,277,099
Loans and Advances 47,006 464,084
26,744,958 30,042,887
Less :
CURRENT LIABILITIES AND PROVISIONS
Liabilities 5,021 4,200
5.021 4,200
NET CURRENT ASSETS 26,739,937 30,038,687
TOTAL 168,569,969 165,286,996
NOTES ON ACCOUNTS AND ACCOUNTING POLICIES 15
The Schedules referred to above form an integral part of the Balance Sheet.
This is the Balance Sheet
referred to in our report of even date.
For LAKHOTIA & CO. K. K. BANGUR
Chartered Accountants S. K. MAJEJI
A. K. JAIN
Kolkata, NARESH LAKHOTIA K. C. PARAKH
Date : 30th April, 2001 Partner Directors

32
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2001

SCHEDULE For the year ended For the period ended

3l8t March. 2001 31st March. 2000
Rs. Rs,
INCOME
Sales 12,084,738
Profit on sale of Investments 2,045,058 23,791
Dividend on -
Equity Shares 6,198,216
Units of Mutual Funds 911,243
Interest 10 1,557.257 2,389,183
Miscellaneous Receipts 64,359
3,666,674 21,607,171
EXPENDITURE
Cost of Sales 11 24,863,597
Administrative and Other Expenses 12 73,701 20,664
Interest 242,000
73,701 25,126,261
PROFIT/(LOSS) BEFORE TAXATION 3,592,973 (3,519,090)
Provision for Income Tax 310,000 2,284,428
PROFIT/(LOSS) FOR THE YEAR 3,282,973 (5,803,518)
Balance brought forward 1,001,996 6,805,514
Balance carried forward 4,284,969 1,001,996

NOTES ON ACCOUNTS AND ACCOUNTING POLICIES 15

The Schedules referred to above form an integral part of the Profit and Loss Account.
As per our report of even date annexed.
For LAKHOTIA & CO. K. K. BANGUR
Chartered Accountants S. K. MAJEJI
A. K. JAIN
Kolkata, NARESH LAKHOTIA K.C. PABAKH
Date : 30th April, 2001 Partner Directors

SCHEDULES ANNEXED TO AND FORMING PART OK THE ACCOUNTS FOR THE YEAR ENDED
31ST MARCH, 2001
As at 31st As at 31st
March, 2001 March, 2000
Rs. Rs.
1. CAPITAL
Authorised
4,000,000 Equity Shares of Rs, 10A each 40,000,000 40,000,000

Issued, Subscribed and Paid-up

4,000,000 Equity Shares of Rs. 10A each fully paid-up in cash 40,000,000 40.000,000
40,000,000 40,000,000

2. RESERVES AND SURPLUS

Profit and Loss Account
Credit Balance as per annexed Profit and Loss Account 4,284,969 1,001,996
4,284,969 1,001,996

3. UNSECURED LOANS
1,242,850 Zero Coupon Unsecured Debentures of Rs. 100/- each 124.285,000 124,285,000
124,285,000 124,285,000

33
 As at 31st March, 2001 As at 31st March, 2000
Face
Value Number Amount Number Amount
Rs. Rs. Rs.
LONG TERM INVESTMENTS-AT COST
Trade-Quoted
Fully paid up Equity Shares in -
Guardian Leasing Limited 10 365,000 3,650,000 365,000 3,650,000
The Emerald Company Limited 10 100,150 11,718,250 100,150 11,718,250
The Bond Company Limited 10 34,650 3,661,000 34,650 3,661,000
Likhami Leasing Limited 10 365,000 3,650,000 365,000 3,650,000
Carbon Everflow Limited 10 1,033,036 33,073,175 1,033,036 33,073,175
GKW Limited 10 194,600 1,364,146 194,600 1,364,146
Gujarat Composite Limited 10 82,666 —
PTC Industries Ltd. 10 29,000 786,045
Unquoted
Fully paid up Equity Shares in -
H.L. Investment Company Limited 10 68,264 3,925,266 68,264 3,925,266
Fully paid up Unsecured Zero
Coupon Optionally Convertible
Debentures in -
GKW Cement Limited 19.50 2,564,103 50,000,009 2,564,103 50,000,009
Other than Trade
Unquoted
Units of -
Templeton India Income Fund Growth plan 10 605,496 7,665,591 695,102 8,800,000
Templeton India Growth Fund 10 116,913 1,500,000
Kothari Pioneer —
Income Builder Growth Plan 1C) 390,370 6,000,000
Prudential ICICI Income Plan-Growth 10 214,727 2,836,550 1,084,812 10,982,672
Prudential ICICI Liquid Plan 10 225,766 2,500,000
Birla Mutual Fund
Income Plus Growth plan 10 128,081 1,923,791
HDFC Income Fund Growth 10 500,000 5,000,000
Reliance Monthly Income Plan - Growth 10 200,000 2,000,000
Kotak Mahindra K Bond Unit Scheme 99
(Whole Sale Plan) Growth 10 441,930 5,000,000
141,830,032 135,248,309

Aggregate amount of Investments

Quoted 57,902,616 57,116,571
Unquoted 83,927,416 78,131,738
141,830,032 135,248,309
Aggregate market value of Quoted Investments 30,087,419 36,362,833

5. SUNDRY DEBTORS
Unsecured — Considered Good
Debts outstanding for a period
exceeding six months 10,260,993 10,260,993
10,260,993 10,260,993

34
 As at 31st As at 31st
March, 2001 March, 2000
Rs. Rs.
6. CASH AND BANK BALANCES
Balance with Scheduled Bank
on Current Account 16,023,465 9,845,654
on Fixed Deposit Account 411,492 6,195,057
16,434,957 16,040,711

7. OTHER CURRENT ASSETS

Dividend Receivable 3,099,108
Interest Receivable 2,002 177,991
2,002 3,277,099

8. LOANS AND ADVANCES

Income Tax Advance ( Net of Provisions) 47,006 464,084
47,006 464,084

9. LIABILITIES
Sundry Creditors 4,200 4,200
Other Liabilities 821
5,021 4,200

For tiie year ended For the period ended

_
31st March, 2001 31st March, 2000
RsT
10. INTEREST ON
Term Deposit with Bank* 1,256,339 173,942
Inter Corporate Deposit * 1,102,591
Income Tax Refund 138,780
Others * 300,918 973,870
1,557,257 2,389.183
* Tax deducted at Source 278,451 494,576

11. COST OF SALES

Opening Stock 134,509,347
Add : Purchases 1,396,096
Less : Transferred to Investments 111,041,846
Less ; Closing Stock
24,863,597

12. ADMINISTRATIVE AND OTHER EXPENSES

Filing Fee 240
Directors' Fee 3,750
Legal and Professional Charges 4,000
Professional Tax 2,500 2,500
Auditors' Remuneration —
Audit Fee 4,200 4,200
Tax Audit Fee 3,150 3,150
Other Matters 1,050
Miscellaneous Expenses 3^801 2,824
73,701 20,664

35
13. PARTICULARS REGARDING PURCHASES, For the year ended For the period ended
SALES AND STOCKS 31st March, 2001 31st March, 2000
Equity Shares Number Rs. Number Rs.
Opening Stock 3,407,966 84,509,338
Purchases/Allotment 194,600 1,396,096
Sales 1,359,200 12,084,738
Transfer to Investments 2,243,366 61,041,837
Closing Stock
Debentures
Opening Stock 2,564,103 50,000,009
Purchases/Subscriptions
Transfer to Investments 2,564,103 50,000,009
Closing Stock

14. BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

1. REGISTRATION DETAILS
State Code 21 Registration No. 54398
Balance Sheet Date 31st March, 2001

2. CAPITAL RAISED DURING THE YEAR (AMOUNT IN RUPEES THOUSANDS)

Public Issue Nil Rights Issue Nil
Bonus Issue Nil Private Placement Nil

3. POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS {AMOUNT IN RUPEES THOUSANDS)

TOTAL LIABILITIES 168,575* TOTAL ASSETS 168,575
Sources of Funds
Paid-up Capital 40,000 Reserves and Surplus 4,285
Secured Loans Unsecured Loans 124,285
Application of Funds
Net Fixed Assets Investments 141,830
Net Current Assets 26,740 Miscellaneous Expenditure
Accumulated Losses
* includes owners' fund - 44,285

PERFORMANCE OF COMPANY (AMOUNT IN RUPEES THOUSANDS)

Turnover 3,667 Total Expenditure 74
(including Other Income)
Profit before Tax 3,593 Profit after Tax 3,283
Earning per Share in Rs. 0.82 Dividend Rate %

5. GENERIC NAMES OF THREE PRINCIPAL PRODUCTS / SERVICES OF COMPANY (AS PER MONETARY TERMS)
Item Code No. (ITC Code) Not Applicable
Product Description Not Applicable

15. NOTES ON ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES

(a) The entire share capital is held by Graphite India Limited, the holding Company and its nominees.
(b) 5,38,850 and 7,04,000 Zero Coupon Unsecured Debentures of Rs. 1007- each shall at the option of the Company exercised at any
time before the expiry of ten years and five years respectively from their respective dates of allotment be fully convertible into
Equity Shares of the Company on such terms as may be mutually agreed between the Company and the Debentureholders. The
Debentures in respect of which option for conversion is not exercised shall be redeemed at par at the expiry of such period. Of
the above Debentures 7,04,000 Debentures are due for redemption/conversion within one year from thn date of this Balance Sheet.
(c) The Company has not provided for diminution in the value o f long term investments since in the opinion of the management such
diminution in value is temporary in nature considering the inherent value, nature of these investments and the investee's assets.
(d) Previous period figures have been regrouped and/or rearranged wherever necessary.
(e) Previous period figures are not comparable with the figures of current year as the same were for a period of fifteen months whereas
the current year's figures are for a period of twelve months.

36
 16. NOTES ON ACCOUNTS AND SIGNIFICANT ACCOUNTING POLICIES (Contd.)
(f) SIGNIFICANT ACCOUNTING POLICIES
These accounts have been prepared on historical cost convention and Income and Expenditure have been recognised on accrual
basis.
Investments are stated at cost. Provision for diminution in the value, other than temporary, shall be made.
Dividend income is accounted for in the year in which the same is declared by the respective Company.
Interest Income is accounted for on accrual bassis.

Signature to Schedules 1 to 15
For LAKHOTIA & CO. K. K. BANGUR
Chartered Accountants S. K. MAJEJI
A. K. JAIN
Kolkata, NARESH LAKHOTIA K. C. PARAKH
Date : 30th April, 2001 Partner Directors

AUDITORS' REPORT
To the Shareholders of GRAPHITE INVESTMENTS LIMITED
We have audited the attached Balance Sheet of Graphite and records of the Company, as we considered appropriate and the
Investments Limited as at 31st March, 2001 and its Profit and Loss information and explanations given to us during the course of our
Account for the year ended on that date and report that ; audit, we report below on the matters specified in Paragraph 4 of
the said order to the extent to which the said order is applicable to
1) We have obtained all the information and explanations which the Company :
to the best of our knowledge and belief were necessary for the
purpose of our audit. i) The Company has taken unsecured loans from Companies
listed in the register maintained under Section 301 of the
2) In our opinion, proper books of account as required by the Companies Act, 1956 and the rate of interest and other
Companies Act, 1956 have been kept by the Company so far as terms and conditions of such loans are prima facie not
it appears from our examinations of those books. prejudicial to the interest of the Company.
3) The Balance Sheet and Profit and Loss Account dealt with by ii) The Company has not accepted deposits from the public.
this report are in agreement with the books of account.
iii) The Company has an internal audit system commensurate
4) In our opinion, the Balance Sheet and the Profit and Loss with its size and nature of its business.
Account dealt with by this report are in compliance with the
Accounting Standards referred to in sub-section (3C) of Section iv) There were no undisputed amounts payable in respect of
211 of the Companies Act, 1956. Income Tax, Wealth Tax, Sales Tax, Customs Duty and
Excise Duty outstanding as at 31st March, 2001 for a
5) On the basis of written representations received from the period of more than six months from the date they became
Directors and taken on record by the Board of Directors, we payable.
report that none of the Directors is disqualified as on 31st
March, 2001 from being appointed as a director in terms of v) No personal expenses have been charged to revenue
clause (g) of sub-section (1) of Section 274 of the Companies account.
Act, 1956.
vi) The Company is not a sick industrial company within the
6) In our opinion and to the best of our information and according meaning of clause (o) of sub-section (1) of Section 3 of the
to the explanations given to us the said accounts subject to Sick Industrial Companies (Special Provisions) Act, 1985.
Note (c) in Schedule 15 regarding dimunition in the value of
vii) The Company has maintained proper records of the
investments the extent of which is not ascertainable at this
transactions and contracts in respect of Investments and
stage and read together with the significant accounting policies
and other notes forming part thereof give the information timely entries have been made therein. All the shares,
required by the Companies Act, 1956 in the manner so required securities, debentures and other investments are held by
the Company in its own name except to the extent of
and give a true and fair view -
exemption granted under Section 49 of the Companies
a) in the case of the Balance Sheet of the state of affairs of Act, 1956.
the Company as at 31st March, 2001 and
b) in the case of the Profit and Loss Account of the Profit of For LAKHOTIA & CO
Chartered Accountants
the Company for the year ended on that date.
As required by the Manufacturing and other Companies (Auditor's Kolkata, NARESH LAKHOTIA
Report) Order, 1988 and on the basis of such checks of the books Date : 30th April, 2001 Partner

37
DIRECTORS' KKPOKT DIRECTORS' RESPONSIBILITY STATEMENT
To The Members, Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
The Directors have pleasure in presenting their Sixteenth Annual Report 1956, the Directors' state -
together with Statement of Accounts for the year ended 31st March, 2001. 1. That in the preparation of the Annual Accounts, the applicable accounting
FINANCIAL RESULTS standards had been followed alongwith proper explanation relating to
Profit before taxation Rs. 1,526,681 material departures.
Less : Provision for taxation Rs. 127.000 2. That the Directors had selected such accounting policies and applied
Profit for the year Rs. them consistently and made judgement and estimates that are reasonable
which is adjusted from loss brought forward and prudent so as to give a true and fair view of the state of affairs of
from previous year Rs. 2,742,461 the Company as at March 31, 2001 and of the profit of the Company for
the year ended March 31, 2001.
Leaving a debit balance in the
Profit & IXJKS Account Rs. 1,342,780 3. That, the Directors had taken proper and sufficient care for the
maintenance of accounting records in safeguarding the assets of the
which is being carried forward to Balance Sheet. Company and for preventing and detecting fraud and other irregularities.
During the year the Company issued 1,00,000. 11% Non-cumulative fully 4. That the Directors had prepared the annual accounts on a going concern
convertible Preference Shares of Rs. 10/- each at a premium of Rs. 90/- per basis.
share on private placement basis which were allotted on 12th April. 2001.
The Company has not accepted any public deposit. DIRECTORS
DIVIDEND Shri B. O. Bangur and Shri S. S. Maloo retire from the Board by rotation
In view of the debit balance in the Profit & I JOBS Account the Directors do and being eligible offers themselves for re-appointment.
not recommend any dividend. AUDITORS
GENERAL M/s Lakhotia & Co., Chartered Accountants, retire as Auditors of the
Since the Company is not engaged in manufacturing activity, particulars Company and being eligible offer themselves for re-appointment.
pursuant to the provisions of section 217 (1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of Board For & on behalf of the Board of Directors
of Directors) Rules, 1988 are not furnished. The observation in tho Auditors' Place : Kolkata, B. G. Bangur
Report is dealt with in the Note at the appropriate place in the Accounts. Date : 27th April, 2001 Chairman
H A L A N ( F. S H K K T AS AT :J1ST M A K C H . 200 i
SCHEDULE As at 31st As at 31st
March, 2001 March, 2000
Rs. Rs.
SOURCES OF FUNDS
SHAREHOLDERS' FUND
Share Capital 1 12,400,000 12,400,000
Reserves and Surplus 2 305.000 305,000
12,705,000 12,705,000
LOAN FUND
Unsecured Loans 3 7,600,000 7,600,000
20,305,000 20,305,000
APPLICATION OF FUNDS
Fixed Assets 4 3,680 44,555
Investments 5 26,683,991 16,994,854
CURRENT ASSETS, LOANS AND ADVANCES
Sundry Debtors 6 140,596
Cash and Bank Balances 7 562,665 30,805
Other Current Assets 8 29,320 16,268
Loans and Advances 9 1,852,683 680,929
2,585,264 728,002
Less :
CURRENT LIABILITIES AND PROVISIONS
Liabilities 10 10,183,715 204,872
Provisions 11 127,000
10,310.715 204,872
NET CURRENT ASSETS (7,725,451) 523,130
PROFIT AND LOSS ACCOUNT 1,342,780 2,742,461
20,305,000 20,305,000
NOTES ON ACCOUNTS AND ACCOUNTING POLICIES 15
The Schedules referred to above form an integral part of the Balance Sheet.
As per our report of even date annexed.
For LAKHOTIA & CO.
Chartered Accountants B. G. BANGUR R. C. LAKHOTIA
Kolkata, NARESH LAKHOTIA S. S. MALOO S. R. MUNDRA
Date : 27th April, 2001 Partner Directors

38
 I ^Bi^B^r HHMK

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2001
SCHEDULE For the year ended For the year ended
31at March. 2001 31st March. 2000
KB. Rs.
INCOME
Dividend 2,500 40,890
Commission 1,924,941 —
Interest 12 98,583 124,416
Other Income 13 46,700 276
2,072,724 165,582
EXPENDITURE
Interest on Debentures 456,000 456,000
Administrative and other expenses 14 39,824 139,145
Loss on sale of shares 9,344 228,549
Loss on fixed asset written off 35,266 —
Depreciation 5,609 10,906
Interest Tax 202
—
546,043 834,802
Profit/(Loss) before Taxation 1,526,681 (669,220)
Provision for Taxation __
127,000 —
Income Tax refund for earlier years 55,861
Profit/fLoss) after Taxation 1,399,681 (613,359)
Balance brought forward (2,742,461) (2,129,102)
Balance carried to Balance Sheet (1,342,780) (2,742,461)
NOTES ON ACCOUNTS AND ACCOUNTING POLICIES 15
The Schedules referred to above form an integral part of the Profit and Loss Account.
As per our report of even date annexed.
For LAKHOTIA & CO.
Chartered Accountants B. G. BANGUR R. C. LAKHOTIA
Kolkata, NARESH LAKHOTIA S. S. MALOO S. R. MUNDRA
Date : 27th April, 2001 Partner Directors

SCHEDULES ANNEXED TO AND FORMING PART OF' THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2001
As at 31st As at 31st
March, 2001 March, 2000
EsT RsT
SCHEDULE - 1
SHARE CAPITAL
Authorised
2,50,000 Equity Shares of Rs. 10/- each 2,500,000 2,500,000
1,00,000 (Previous year 2,00,000) Preference Shares of Rs. 100/- each 10,000,000 20,000,000
10,00,000 Preference Shares of Rs. 10/- each 10,000,000
22,500,000 22.500,000
Issued and Subscribed
2,40,000 Equity Shares of Rs.10/- each 2,400,000 2,400,000
1,00,000 1% Non-cumulative fully convertible Preference
Shares of Rs. 100/- each 10,000,000 10,000,000
1,00,000 11% Non-cumulative fully convertible Preference
Shares of Rs. 10/- each (Issued during the year) 1,000,000
13,400,000 12,400.000
Paid up
2,40,000 Equity Shares of Rs.10/- each
fully paid up in cash 2,400,000 2,400,000
1,00,000 1% Non-cumulative fully convertible
Preference Shares of Rs. 100/- each
fully paid up in cash 10,000,000 10,000,000
12,400,000

39
 As at 31st As at 31st
March,<2001
___ March, 2000
"
SCHEDULE - 2
RESERVES AND SURPLUS
Reserve Fund:
Balance Brought Forward 305,000 305,000
305,000 305,000

SCHEDULE - 3
UNSECURED LOANS
76,000 6% (Previous Year 14%) Unsecured Convertible Debentures of Rs. 100/-each 7,600,000 7,600,000
7,600,000 7,600,000

SCHEDULE - 4
FDCED ASSETS
DESCRIPTION GROSS BLOCK DEPRECIATION NET BLOCK
As at Additions Sales/Adjust- As at As at For Sales/Adjust- As at As at As at
31st March, during ment during 31st March, 31st March, the year ment during 31st March, 31st March, 31st March
2000 the year the year 2001 2000 the year 2001 2001 2000
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Furniture & Fixtures 4940 — — 4940 947 313 — 1260 3680 3993
Computer 65350 — 65350 — 24788 5296 30084 40562

Current year 70290 — 65350 4940 25735 5609 30084 1260 3680 44555
Previous year 70290 — — 70290 14829 10906 — 25735 44555 55461

SCHEDULE - 5
INVESTMENTS
(Non-Trade - At Cost)
Fully paid up Equity Shares in Joint Stock Companies.
As at 31st March, 2001 As at 31st March, 2000
Name of the Company Face No. of Amount No. of Amount
Value Shares Shares
Rs. Rs. Rs.
LONG TERM
QUOTED
Shree Cement Limited 10 1,252,000 20,977,769 1,152,000 14,156,038
Assambrook Limited 10 1,250 32,594
Shree Synthetics Limited 10 992 28,349 992 28,349
Gujarat State Fertilizer Co. Limited 10 100 10,945 100 10,945
NBI Industrial Finance Limited 10 35,000 249,728 35,000 249,728
UNQUOTED
Digvijay Finlease Limited 10 248,000 2,517,200 248,000 2,517,200
Newa Investments Ltd. 10 145,000 1,450,000
Didu Investments Ltd. 10 145,000 1,450,000
26,683,991 16,994.854
Aggregate amount of Investments
Quoted 21,266,791 14,477,654
Unquoted 5,417,200 2,517,200
16,994,854
Aggregate market value of Quoted Investments 36,001,060

40
 Aflat 31st As at 31st
March. 2000
BaT
SCHEDULE - 6
SUNDRY DEBTORS
Unsecured-Considered good
Debts outstanding for a period exceeding six months
Other debts

SCHEDULE - 7
CURRENT ASSETS
CASH AND BANK BALANCES
Cash in hand 3,889
Balances with Scheduled Banks on Current Accounts 26,916

30,805
SCHEDULE - 8
OTHER CURRENT ASSETS
Unsecured-Considered good
Security Deposit 15,500 15,500
(National Savings Certificate lodged with the
Mining Authorities, Government of Rajasthan Rs. 12,5007-
& lodged with Sales Tax Department Rs. 30007-.)
Interest Receivable 768
16,268
SCHEDULE - 9
LOANS AND ADVANCES
Unsecured -Considered good
Loans to Companies 550,000
Income Tax Advance 130,929

680,929
SCHEDULE -10
LIABILITIES
Sundry Creditors 19,807
Advance against share issue 10,000,000
Other Liabilities 66,235 72,627
Interest accrued but not due 112,438 112,438

10,183,715 204,872
SCHEDULE -11
PROVISIONS
For Taxation 127,000
127,000

For the year ended For the year ended

31st March, 2001 31st March, 2000
Rs.
SCHEDULE -12
INTEREST ON
Loans* 55,954
Income Tax Refunds 29.498 68,462
98,583 124,416
* Tax deducted at source 12,309

41
 For the year ended For the year ended
31st March, 2001 31st March, 2000
RsT rZsT
SCHEDULE-13
OTHER INCOME
Share difference 43
Liability no longer required written back 46,657 276
46,700 276
SCHEDULE - 14
ADMINISTRATIVE AND OTHER EXPENSES
Rent 600 7,200
Salaries and Bonus 5,500 79,964
Rates and Taxes 3,910 3,910
Filing Fees 4,000 360
Service Charges 642 19,022
Staff Welfare 7,714
Printing & Stationery 2,191 2,203
Bank Charges 1,210 60
Computer Maintenance 6,500
Directors' fees 8,250 6,000
Auditors' Remuneration
As Audit Fees 3,150 3,150
For Certification 1,050
Irrecoverable balance written off 49
Miscellaneous expenses 9,272 3,062
39,824 139,145
SCHEDULE -15
A. NOTES ON ACCOUNTS
1. The entire issued, subscribed and paid up capital of the company is held by Graphite India Limited, the holding company and its
nominees.
2. 1 % Non-cumulative fully convertible Preference Shares of Rs. 1007- each issued on 31st December, 1996 are convertible into one
fully paid up Equity Share of Rs. 10/- each of the Company at the option of the company at any time after the issue by giving one
month's notice and shall be compulsorily converted into Equity Shares in the said ratio at the end of the 10th year from the date of
issue thereof.
3. 6% Unsecured Convertible Debentures of Rs. 100/- each shall at the option of the holders thereof be fully convertible into equity
shares at par at the expiry of 8 years from the date of allotment and debentures in respect of which option is not exercised shall be
redeemed at par at the expiry of such period. These debentures are due for redemption/conversion within one year from the date of
this Balance Sheet.
4. The Company has not provided for diminution in the value of long term investments since in the opinion of the management such
diminution in value is temporary in nature considering the inherent value, nature of these investments and the investee's assets.
5. Figures of the previous year have been regrouped/rearranged wherever necessary.
6. Additional information required under Part-IV of Schedule-VI to the Companies Act, 1956 is annexed hereto.
B. ACCOUNTING POLICIES
1. Method of Accounting : These accounts have been prepared on historical cost convention and Income and Expenditure have been
recognised on accrual basis.
2. Fixed Assets : Fixed Assets are stated at cost less depreciation.
3. Investments : Investments are stated at cost. In arriving at the cost related expenses have been included. Provision for diminution
in the value, other than temporary, shall be made. Purchase and sale of Investments are accounted for as and when deliveries are
effected.
4. Dividend : Dividend Income is accounted for in the year in which it is declared by the companies.
5. Interest: Interest is accounted for on accrual basis.
6. Depreciation : Depreciation is provided on Straight Line method at the rates and in the manner specified in Schedule-XTV of the
Companies Act, 1956.
Signatures to Schedules 1 to 15
For LAKHOTIA & CO.
Chartered Accountants B. G. BANGUR R. C. LAKHOTIA
Kolkata, NARESH LAKHOTIA S. S. MALOO S. R. MUNDRA
Date: 27thApril, 2001 Partner Directors

42
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE FOR YEAR ENDED 31ST MARCH, 2001.

PART IV
I. Registration Details
Registration No : 39468 State Code 21
Balance Sheet Date 31 03 2001
Date Month Year

II. Capital Raised during the Year (Amount in Rs. Thousands )

Public Issue Nil Rights Issue Nil
Bonus Issue Nil Private Placement Nil

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)

Ibtal Liabilities 30616* Tbtal Assets 30616
Sources of Funds:
Paid up Capital 12400 Reserves and Surplus 305
Secured Loans Nil Unsecured Loans 7600
Application of Funds :
Net Fixed Assets 4 Investments 26684
Net Current Assets (7725) Misc. Expenditure Nil
Accumulated Losses 1342
* Includes owners' fund - 12705

IV, Performance of Company (Amount in Rs. Thousand)

Turnover (Including other income) 2072 Total Expenditure 546
Profit before Tax 1527 Profit after Tax 1400
Earning per Share in Rs. 5.83 Dividend Rate % Nil

V. Generic Names of Three Principal Products/Services of Company (As per monetary terms)
Item Code No. (ITC Code) Not Applicable
Products Description Not Applicable

Signed for identification

For LAKHOTIA & CO.
Chartered Accountants
B. G. BANGUR R. C. LAKHOTIA
Kolkata, NARESH LAKHOTIA S. S. MALOO S. R. MUNDRA
Date : 27th April, 2001 Partner Directors

43
 RAGINI FINANCE LIMITS

AUDITORS' REPORT
To the Shareholders of RAGINI FINANCE LIMITED details and situation of fixed assets. The fixed
assets have been physically verified by the
We have audited the attached Balance Sheet of RAGINI management during the year and discrepancies
FINANCE LIMITED as at 31st March, 2001 and its Profit noticed on such verification have been properly
and Loss Account for the year ended on that date annexed dealt with in the books of account.
thereto and report that :-
ii) The fixed assets have not been revalued during
1) We have obtained all the information and explanations the year.
which to the best of our knowledge and belief were
necessary for the purpose of our audit, iii) The Company has taken unsecured loans from
companies, firms or other parties listed in the
2) In our opinion, proper books of account as required by register maintained under Section 301 of the
the Companies Act, 1956 have been kept by the Companies Act, 1956 and the rate of interest and
Company so far as it appears from our examination of other terms and conditions of such loans are prima
those books. facie not prejudicial to the interest of the Company.
3) The Balance Sheet and Profit and Loss Account dealt iv) The Company has granted unsecured loan to a
with by this report are in agreement with the books of Company listed in the register maintained under
account. Section 301 of the Companies Act, 1956 and the
4) In our opinion, the Balance Sheet and the Profit and rate of interest and other terms and conditions of
Loss Account dealt with by this report are in compliance such loans are prima facie not prejudicial to the
with the Accounting Standards referred to in sub-section interest of the Company.
3(C) of Section 211 of the Companies Act, 1956. v) The parties to whom loans or advances in the
5) On the basis of written representations received from nature of loans were given by the Company are
the Directors and taken on record by the Board of repaying the principal amounts as stipulated and
Directors, we report that none of the Directors is are also regular in payment of the interest.
disqualified as on 31st March, 2001 from being
vi) The Company has not accepted deposits from the
appointed as a director in terms of clause (g) of sub-
public.
section (1) of Section 274 of the Companies Act, 1956.
vii) The Company has an internal audit system
6) In our opinion and to the best of our information and
commensurate with its size and nature of its
according to the explanations given to us the said
business.
accounts subject to Note 4 in Schedule 15 regarding
dimunition in the value of investments the extent of viii) There were no undisputed amounts payable in
which is not ascertainable at this stage and read together respect of Income Tax, Wealth Tax, Sales Tax,
with the accounting policies and other notes forming Custom Duty and Excise Duty outstanding as at
part thereof give the information required by the 31st March, 2001 for a period of more than six
Companies Act, 1956, in the manner so required and months from the date they became payable.
give a true and fair view -
ix) No personal expenses have been charged to revenue
a) in the case of the Balance Sheet of the state of account.
affairs of the Company as at 31st March, 2001 and
x) The company is not a sick Industrial Company
b) in the case of the Profit and Loss Account of the within the meaning of clause (o) of sub-section (1)
Profit of the Company for the year ended on that of Section 3 of the Sick Industrial Companies
date. (Special Provisions) Act, 1985.
As required by the Manufacturing and other Companies xi) In respect of Company's investments proper records
(Auditor's Report) Order, 1988 and on the basis of such have been maintained of the transactions and
checks of the books and records of the Company as we contracts and timely entries have been made
considered appropriate and the information and therein. All the investments are held by the
explanations given to us during the course of our audit, we Company in its own name.
report below on the matters specified in Paragraph 4 of
the said order to the extent to which the said order is For LAKHOTIA & CO
applicable to the Company : - Chartered Accountants
i) The Company is maintaining proper records Kolkata, NARESH LAKHOTIA
showing full particulars including quantitative Date : 27th April. 2001 Partner

44
GENERAL SHAREHOLDERS INFORMATION

Annual General Meeting

Date and Time 30th July, 2001 at 10.30 a.m.
Venue Kala Kunj Auditorium, Sangit Kala Mandir Trust
48, Shakespeare Sarani, Kolkata - 700 017
Book Closure Date 17th July, 2001 to 30th July, 2001
Listing of Equity The Calcutta Stock Exchange Association Ltd.
Shares on Stock Exchanges 7, Lyons Range, Kolkata-700 001
The Stock Exchange, Mumbai,
Phiroze Jeejeebhoy Towers,
Dalai Street, Mumbai-400 001
Annual Listing Fees for the year 2001-02 have been
duly paid to the above Stock Exchanges.
Registrars and Share ABC Computers Private Ltd.
Transfer Agents National Council of Education, Bengal
Jadavpur University Campus, Jadavpur, Kolkata-700 032
Phone : 473-5363 /1292, 472-4561
Fax : (033) 483 2970, E-mail: [email protected]
Distribution of Shareholdings
as on 31st March, 2001 No. of Shares No. of Share No. of Shares Percentage
From lb holders held

1 - 500 4198 519313 4.30

501 - 1000 198 145620 1.21
1001 - 2000 69 100998 0.84
2001 - 3000 18 44135 0.36
3001 - 4000 4 14280 0.12
4001 - 5000 3 12801 0.11
5001 - 10000 5 34178 0.28
10001 - Above 39 11195601 92.78

4534 12066926 100.00

Dematerialisation of Shares Trading in Equity Shares of the Company is permitted only in

dematerialised form w.e.f. 28th August, 2000.
Approximately 86.01% of the Equity Shares of the Company have
been dematerialised upto 31st March, 2001.

45
GKNKHAK SHARKHO1.UKRS

Plant Location Graphite :

Durgapur - 713 211
Phone : (0343) 556641-45

Whitefield Road,
Bangalore-560 048
Phone :(080) 8524061-71

Coke:
Phulwaria
Barauni-851 112
Phone : (06279) 32252

Power :
Chunchanakatte,
K R Nagar Taluk,
Mysore-571 617
Phone : (08223)81115-18

Whitefield Road,
Bangalore-560 048
Phone : (080) 8524061-71

R&D Centre Whitefield Road

Bangalore 560 048
Phone : (080) 8524061-71

Sales Office 407, Ashoka Estate

24, Barakhamha Road
New Delhi 110 001
Phone: (Oil) 3314364-66

Address for Investor Correspondence Graphite India Limited

Share Department,
31, Chowringhee Road
Kolkata-700 016

46
NOTES
GRAPHITE INDIA LIMITED

NOTES