Global Reach: Linc Pen & Plastics Limited

Linc Pen & Plastics Limited
Annual Report 2012-13
Global
reach
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Forward-looking statements Despite several challenges and headwinds, India is fast-evolving in
In this annual report we have disclosed forward-looking information to enable investors to comprehend our prospects and
terms of its aspirations, consumption patterns and societal progress,
take informed investment decisions. This report and other statements – written and oral –that we periodically make contain
forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have especially on the back of its robust demographic dividend.
tried wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’,
Even as this scenario unfolds, at Linc, we recognise that our way
‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with any discussion of future performance. We
cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in of doing business needs to continually evolve to ensure market
our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should relevance and sustainable value creation for all stakeholders.
known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or projected. We undertake no obligation to publicly update any The year 2012-13 was the one during which we engaged in
forward-looking statements, whether as a result of new information, future events or otherwise. fortifying our business, preparing ourselves for the future and
rewriting our destiny to remain a
Contents
brand signature
for our customers.
Business overview Strategic review
02 Corporate identity 10 From the MD’s desk
04 Growth so far 14 Business strategy
16 Business model
Operational reviews Statutory part Financial statements

18 Management 26 Directors report 40 Auditors report
discussion analysis 30 Corporate Governance 44 Balance sheet
21 Business drivers 45 Statement of profit and loss
23 Intellectual capital 46 Accounting policies to
financial statements
24 Risk management
68 Cash flow statement
70 Five year financial highlights
71 Performance US$
72 Corporate information
Linc
Vision Mission
To establish Linc as a global To deliver innovative, user-
brand known for its values, friendly and superior-quality
assertiveness and the acumen products at the best value to
to adapt to the ever-changing customers, keeping in mind
environment the prosperity of the Company
is one of the top-three and its stakeholders
players in the Indian writing

instruments industry with a
market share of over 10%
Core values Inception Presence
We recognise that Linc was incorporated by Linc is headquartered in
we are in business to Mr. S. M. Jalan in 1994. Kolkata and enjoys a pan-
primarily satisfy our The Company went India sales presence. The
customers public through an IPO in Company’s products are
Our performance must 1995 with listings on the also exported to over 40
ultimately get reflected in Bombay Stock Exchange countries.
the increased value for and the Calcutta Stock
our shareholders Exchange. Accreditations
Linc’s manufacturing
We treat our employees
Business facilities are accredited
and stakeholders with
Linc Pen & Plastics with the ISO-9001:2008
the utmost respect and
Limited is amongst a certification, ensuring
dignity
handful of Companies superior product quality.
We observe and adhere in India to offer the
to the highest standards complete range of writing
of ethical corporate instruments.
Alliances
behaviour The Company entered
Manufacturing into a strategic marketing
We work as a team to
facility alliance with Mitsubishi
continuously enhance
Linc possesses two state- Pencil Company Ltd
stakeholder value and
of-the-art manufacturing (Japan) and C. Joseph
serve our customers
facilities at the Falta SEZ Lamy (Germany) to
and Serakole (both in market their writing
West Bengal). instruments across India.
02 Linc Pen & Plastics Ltd Annual Report 2012-13 03

04
Linc Pen & Plastics Ltd
2008-09 187.58
2009-10 222.05
2010-11 248.14
2011-12 271.00
Scripting sustainable
Revenues (` crore)
2012-13 299.74
Financial
Growth
2008-09 12.79
2009-10 16.31
2010-11 16.51
2011-12 10.27
EBIDTA (` crore)
2012-13 13.99
2008-09 8.13
2009-10 11.46
2010-11 12.92
2011-12 5.99
2012-13 9.88
Cash profit (` crore)

2008-09 5.04
2009-10 8.39
2010-11 8.39
2011-12 1.69
Net profit (` crore)
2012-13 5.41
2008-09 3.94
2009-10 6.57
2010-11 6.57
2011-12 1.33
Annual Report 2012-13
2012-13 3.91
Earnings per share (`)
05
Global
reach! Emerged as the first in the industry to
launch the unique ‘pack of three’ offering,
which includes an ensemble of three fast-
ON HOW YOU CAN’T REINVENT THE moving pens, representing not just higher
WHEEL… AND HOW WE HAVE BEEN billing per transaction but also an enhanced
traction in volume sales.
CONSISTENTLY DOING SO
Launched the breakthrough ‘Twin’
product comprising a pen on one side and
a pencil on the other, strengthening user
convenience.
Launched products - Linc Tycoon, and

Linc Maestro to cater to the semi-premium
segment.

Global
reach!
ON HOW YOU CAN’T PEN DOWN
SUCCESS IN THE WORLD ARENA…
AND HOW WE HAVE BEEN CONTINUING
TO SCRIPT GLOBAL TRIUMPH WITH A
‘MADE-IN-INDIA’ BRAND
We are one of the leading exporters of

writing instruments in India with export
turnover of `77 crore.
We enjoy an export presence in over

40 countries.
We have established a new

manufacturing line at our Falta unit to
exclusively cater to the export market.

Q&
We
“
A session
trumped the 7% growth of India’s organised

writing instruments industry with a revenue
growth of 11%, indicating the growing
traction and preference for our brands in a
competitive marketplace.”
Mr. Deepak Jalan, Managing Director
Q Were you happy with the performance of the

Company during the year under review?
We fell short of our revenue growing traction and preference
target by about 7%, reporting a for our brands in a competitive
topline of `305 crore. I was not marketplace. We reported a net
satisfied with this performance profit of `5.41 crore, despite a
though we trumped the 7% `3.14 crore loss suffered due to
growth of India’s organised writing adverse currency movements,
instruments industry with revenue reflecting the solidity of our core
growth of 11%, indicating the business.
Q What were the factors that enabled the Company to counter

increased competition?
There were a number of initiatives towards fortifying the Linc brand
undertaken during the course of resulting in a stronger customer
2012-13 that made it possible pull, increased brand preference
for the Company to counter and product assurance translating
competition. Over the last five into a greater sales traction.
years, we invested over `50 crore

Q What were some of the challenges faced during the
year under review? Q In what ways did the Company strengthen its business model
during the year under review?
The principal challenge was the costs during the year as crude oil There was a `20 crore capital of rising manufacturing costs in
considerable supply overhang prices rose and the rupee weakened infusion by Mitsubishi Pencil Co. their country of origin. It would
resulting out of the low entry substantially causing price spikes Ltd, Japan, during 2012-13 with be relevant to indicate to our
barriers existing in the business. So which could not be fully passed on the multinational picking up a shareholders, that the Mitsubishi
each time the market appeared to to the consumers. There was a 100 13.5% stake through the acquisition acquisition was independent of our
grow in 2012-13, the unutilised bps increase in the excise impact of 20 lac shares at position and can not be classified
capacities came into play and to 2%, which only widened the `100 each when the market price as the promoter’s stake. The inflow
additional volumes capped probable gap between the unorganised and was around `47. While nothing of funds helped Linc reduce interest
price increases. Moreover, there organised trade, making the two has been spelt out as yet, we costs to `2.48 crore; strengthening
was an increase in raw material segments more competitive. assume that this investment will the interest cover to 5.6.
help Mitsubishi counter the reality
Q The Company performed credibly on the exports front. What were

the reasons for this? Q In a competitive business environment, what are the positive
developments to have transpired over the last five years?
Over the last few years, we resolved offtake. Over the last few years, Principally, the government’s attractive economies-of-scale. As
to increase our international there has been a growing respect for decision to do away with the SSI an extension of this reality, we
exposure for some valid reasons. the ‘Made in India’ brand recognised limit has now made it possible expanded capacity Falta SEZ which
There was an unmet need for a as a good in-between product – not for companies like ours to invest has a revenue potential of around
reliable writing instruments brand in cheap, not expensive either. directly in capacity and achieve `40 crore now.
countries that were demographically
During 2012-13, we booked
similar to India; the Linc brand had
Q
`77 crore worth of exports,
acquired the stability to expand What is the Company’s outlook
accounting for 26% of our topline,
internationally. The rupee was for 2013-14 ?
up from 22% in 2010-11. What
at a level where exports were
was creditable is that the Company One of the principal things that we open up an entirely new segment,
remunerative and the Company had
exported 90% of the products expect to achieve during the current accelerating the growth of the
acquired the scale in manufacturing
under its own brand to the SAARC financial year is to create a new industry. Besides, we expect to grow
which resulted in growing output.
nations, Africa and the Middle East price segment. Over the last few our exports in excess of `100 crore
This helps us tap the export
where the brand is respected for its years, we have increasingly felt a and increase automation across our
markets and today we market
reliability and familiarity, translating big gap between the volume-end of manufacturing facilities to improve
products to over 40 countries
into higher premium with a large the market (sub-`5) and the value- operational efficiencies.
across the globe. Interestingly, there
pass through to the bottomline. end (`10-plus), with no products
is another factor driving exports
in between. Our objective will be As a result of these initiatives we
to create products within this price expect double-digit growth in
band by introducing packs of three 2013-14 despite challenging market
pens for `20, which we feel could conditions.

Business
strategy
1 MARKET LEADERSHIP 4 OPERATIONAL EXCELLENCE
Strategic intent Introduce new and Improve marketing Strategic intent capacities to achieve Ease the choke point
Emerge as the leading innovative products in the initiatives aimed at Manage productivity better economies-of- in our production lines
writing instruments international markets. dealers and end users by systematically, leading to scale and strengthen thereby, enhance output
manufacturer in India. Enter into the semi- improving top-of-the-mind optimal usage of time and competitiveness. and improve average
Strategies premium/premium awareness and recall. resources. Enhance operational plant capacity utilisation.
Strengthen relationships segment, progressively Strategies productivity to create
with the dealers and the shifting from the mass Investing in production leaner cost structures.
customer community. segment.
2 REACH 5 BRANDING
Strategic intent global writing instruments Increase sales presence Strategic intent Strategies institutional customers.
Facilitate the availability brand. in domestic markets and Positioned ourselves Establish trust as Invest proactively in
of the Company’s Strategies expand and reach out as the most preferred well as respect for the branding by allocating a
products domestically Improve presence to customers through brand domestically for brand domestically and fixed sum every year.
and internationally and abroad by penetrating improved marketing and writing instruments internationally.
thereby emerge as a untapped markets. distribution channels. and stationery and also Position ourselves to
emerge as a respected cater to retail as well as
international brand.
3 QUALITY 6 CUSTOMER FOCUSED

Strategic intent higher price-performance to check for quality and Strategic intent Strategies Cater to the niche mid-
Manufacture superior ratio. efficiency to minimise Appeal to price-sensitive Develop new products segment that lies between
quality products and Establish trust and rejections. customers by offering through ongoing research. the premium and mass
establish industry respect for our products Deliver ‘value-for-money’ products at a better price- Offer products that segments.
benchmarks. by developing stronger propositions to price- value proposition. provide superior usage Diversify into newer
Strategies brand equity. sensitive customers. value. geographies.
Develop products with a Conduct various tests

Our
business
model
BELIEF PRODUCT SELECTION
Our business model is grounded in We have selected to manufacture
economies-of-scale, which can cover products around a select criteria – the
our investments and strengthen returns, intended product must address lifestyle
creating value for our stakeholder trends and possess characteristics
universe. reflecting a synergy that would make it
possible to achieve the highest quality
standards at the lowest costs in the
shortest time across the widest number
of grades translating into the highest
price-value propositions.
STRATEGIC INVESTMENTS INTEGRATION

We believe in an alliance-led model We are of the opinion that having an
and are continually on the lookout for in-house assembling facility ensures
creating strategic win-win partnerships. superior quality control, quicker supply
For instance, Mitsubishi of Japan and a reduction in labour costs, helping
possesses a minority stake of 13.5% us widen our arbitrage in a competitive
in Linc, enabling us to strengthen our marketplace.
brand visibility and revenues.
TECHNOLOGY DISTRIBUTION
Our strategic alliances with Mitsubishi We possess an efficient distribution
Pencil Ltd (Japan) and C. Joseph Lamy network.
(Germany) enables us to incorporate the
best practices in the world.
MANUFACTURING GEOGRAPHIC FOCUS

Our tightly-knit operations including We operate across a number of Indian
assembling and moulding epitomise and international locations and enjoy
efficient cost control and enhanced a distinct locational advantage being
quality, strengthening our competitive in the vicinity of major consumption
edge. markets. We leverage our strength
to procure adequate cost-effective
raw materials, enabling us to sustain
operations across market cycles.

Management The ` 2,750 crore>
discussion and
analysis
worth Indian writing
instruments industry is largely
consolidated with 75% of
the market resident with the
organised sector.
Indian writing instruments colleges, and offices and plays a products is an important driver ensuring higher offtake of stationery and
industry very crucial role in determining the encompassing the following: writing instruments.
The `2,750 crore worth Indian profitability of the Company. It includes A small segment of pens are priced Government expenditure on
writing instruments industry is largely paper stationery comprising exercise between a band of `100-`300 education
consolidated with 75% of the market in books, note books, glues and tape With the Government recognising
The ultra premium segment (prices
the hands of the organised sector. The pads, refill pads, flap-over pads, subject the need for making education more
beyond `100,000) account for a tiny
industry has been witnessing an annual books and plastic cover books, among inclusive, it has enhanced education
portion
growth rate of around 7-8%. With a others. outlays in the Union Budget 2012-13
The market for lower-priced pens is
market share of about 10%, Linc is Interestingly, the bulk of the market to 4.97% of the GDP. As a share of
growing annually at 7% while the mid-
among the top-three players in the share in India is moving from the the GDP, this allocation represents an
range market is growing at 10%
organised domestic writing instruments unbranded to the branded sector fuelled increase from 0.69% of the total
market and the largest player in the by the following target audience: Some of the factors that influence the budget (in 2011-12) to 0.73 % in
East. consumption of writing instruments in 2012-13.
Frequent users (students and the India include:
Indian stationery market office workforce) Government initiatives
Stationery usually comprises paper and Favorable demographics: Rashtriya Madhyamik Shiksha Abhiyan
Occasional users (housewives and
office supplies, writing instruments, At 1.27 billion, India’s population (RMSA)
literate manual workers)
colours, pins, glue and pencil cases, is the second largest in the world. Outlays to the Rashtriya Madhyamik
among others. A number of premium India’s literacy rate is a high 74%, Almost 65% of them fall below the Shiksha Abhiyan (RMSA) have gone
international brands are present catalysing the use of writing instrument. age of 35 years. The potential market from `2,423 crore in 2011-12 to
in India either independently or for companies providing educational `3,124 crore in 2012-13. For the
Ball point pens dominate the market,
through collaborations with Indian services is thus immense, compared University Grants Commission (UGC),
accounting for around 72% of the total
manufacturers and distributors such as with other nations. allocations in the 2012-13 Budget have
demand, followed by gel pens at 28%.
Reynolds, Parker, Cross, Mont Blanc increased from `8,927 crore in 2011-
Fountain pens have a negligible share
and Pierre Cardin, among others. India’s literacy rate 12 to `10,350 crore in 2012-13.
which is used largely as a luxury option.
Though the literacy rate in India stands Sarva Shiksha Abhiyan (SSA)
The domestic stationery industry is a Nearly 85% of users across the country
at 74.04%, there has been substantial The Union Government outlay toward
heterogeneous group of businesses use blue, black and red ink pens.
growth in per capita income to its flagship Sarva Shiksha Abhiyan
largely associated with schools, The pricing of pens and stationery `68,748, up by 11.5% from last year, (SSA) programme for universalising

Business
drivers
quality elementary education has grown the Rashtriya Uchhatar Shiksha
from `21,000 crore in 2011-12 to
`25,555 crore in 2012-13.
Abhiyan (RUSA) during 12th Five Year
Plan. The government has already
provided `500 crore under the scheme
1 International
Kasturba Gandhi Balika Vidyalaya Success in the stationery industry is Expanded presence in four new
to each state.
(KGBV) based on easy product availability and countries
Almost 2,578 KGBVs were sanctioned Sakshar Bharat a strong distribution network. Linc has
by the Government till date. Of these, The Sakshar Bharat programme is being a significant domestic as well as an Outlook 2013-14
427 KGBVs have been sanctioned in implemented to increase literacy levels international distribution channel. Linc Attain export sales of worth
Muslim concentration blocks, 612 in ST among women. is amongst a handful of companies to `100 crore
blocks and 688 in SC blocks. A total of export products from India To consolidate ourselves across
750 of such residential schools would Budget 2012-13
products, countries and thereby
be opened in educationally backward The Budget proposes `61,427 crore in Key highlights 2012-13
entrenching our manufacturing
blocks. Almost 75% enrolment is 2012-13 for education, representing Achieved 14.5% increase in exports
presence
reserved for girls from SC, ST, OBC and only a 17% increase from the current from `67 crore in 2011-12 to `77
fiscal estimates against an 18% hike in crore in 2012-13 To innovate and provide quality
minority communities and the other
the budgetary spending last year and products
25% to girls from families below the
poverty line. 24 % in FY12, declined by 1%.
Rashtriya Uchhatar Shiksha Abhiyan Primary and secondary school

(RUSA)
The proposed Rashtriya Ucchatar
Shiksha Abhiyan (RUSA) is aimed at
education, with an enrollment of more
than 220 million students, has been
allocated `49,659 crore in 2012-13
2 Domestic
increasing enrollment in the higher against `45,969 crore last year. Higher Key highlights 2012-13 Undertook cost-cutting initiatives
education institutions to 30% by 2020 education has received an outlay of Achieved 11% growth compared and augmented operational
as against the present 12.4%. The `16,198 crore, up from `15,458 crore with 7% growth in the industry efficiencies
government intends to subsume the last year. Phased out slow moving products Strengthened the offtake of value-
current scheme of setting-up model added pens
The total education outlay, including Reduce the number of products to
degree colleges in 374 educationally-
Plan and non-Plan allocation, has cater to the semi-premium segment of
backward districts of the country Outlook 2013-14
risen to only 7.3% to `79,451 crore the market
Launch few new products.
(Source: The Hindu). The Central in 2013-14 from `74,056 crore in Catered to the semi-premium
2012-13. Pioneer the ‘Twin’ concept of a pen
Government has planned to provide and premium segments, gradually
with a pencil at the other end
state institutions `25,000 crore under reducing dependence on the mass
segment Reinforce the distribution network

Intellectual
capital
3 Operations
The business of writing instruments Consolidated inventory locations to
uses diverse raw materials and strengthen logistical advantage
operational efficiency helps enhance Purchased new machines to improve
procedural competence. Over the automated operations and improve
years, the Company has stressed on operational efficiency
investing in the incorporation of world- At Linc, our aim is to not only increase employee capabilities but also to motivate
Achieved better plant capacity
class equipment towards enhancing them so that they grow and go beyond their capabilities and responsibilities.
utilisation
automation and operational efficiency
through training.
Outlook 2013-14 We have upgraded our workforce Employees were provided various
Key highlights 2012-13 Improve operational efficiency planning, recruitment induction, benefits during the year under review
Improved quality system via training Enhance efficiency by reducing on-the-job job training, payscale, including:
and supply chain management in the clogging and improving delivery times employee benefits, administration Personal accident coverage
assembly units and performance appraisal to ensure
Special leaves for anniversaries and
organisational development. Job
birthdays
satisfaction is brought about by
combining functional responsibility with Educational allowance for up to two
relevant skills. children of workers and support staff
4 Quality We normally recruit via newspaper

advertisements, professional
Compassionate leave in case of death
or an immediate family emergency
consultants, campus recruitments and Group mediclaim policy with a `1

Linc is renowned for delivering Key highlights 2012-13 lac family floater coverage for each
job portals to select the right talent.
superior quality products, derived Use of AQL (accepted quality levels) employee
Recruits undergo rigorous need-based
from a procedural disciplined for benchmarking the quality of its At Linc, our manpower base has
training, which helps develop and enrich
that is vindicated by its ISO products increased from 488 in 2007-08 to
skill sets. Deserving employees receive
9001:2008-certification. The 711 in 2012-13.
Resolving quality issues by the right promotions at the right time as
discipline has translated into world-
conducting ongoing meetings the appraisal system is transparent and
class products, growing international
well-structured.
presence as well as cordial Outlook 2013-14
relationships with global retail giants. Installed new machines at Falta

Risk management
3
Risk is an integral factor in virtually all businesses. At Linc, risks are adequately De-risking measures
measured, estimated and controlled. Irrespective of the type of risk or the activity that
COMPETITION
The Company possesses a large product portfolio
creates it, the Company’s fundamental approach to risk management remains the
RISK
including ball point and gel pens at price points
same: identify and measure risks, leverage an in-depth knowledge of the business Increase in the market starting from `5.
and competitors and respond flexibly in our risk understanding and management. share of the unorganised It is the second largest player in the organised
sector may threaten the writing instruments industry with a market share
Over the years, the Company designed a structured risk management programme,
organised sector. of above 10% and the status of a market leader in
evaluated the probable impact of risks on the business and countered them with
ongoing control measures or developing new ones if necessary. Eastern India
1 INDUSTRY
RISK
De-risking measures
The Company is launching new products to cater to
the semi-premium segment.
4 PRODUCT
PORTFOLIO RISK
Innovation is the key to
De-risking measures
The Company added four new products to its
basket during 2012-13.
A gradual decline in It has targeted the semi-premium segment with
It is also launching a new marketing strategy
the pens and stationery success against business products such as Maestro and Tycoon.
known as ‘pack of three’ where three pens will be
industry can have an stagnation. It has developed a new sales strategy that targets
sold in one pack.
impact on the Company’s selling pens in a pack of three, opening up a new
At Linc, robust quality control makes Linc among
overall growth. segment in the market .
the top-three players in the writing industry in India.
It has also come up with a product which has a
We have outperformed the industry growth by 4%.
pen on one side and a pencil on the other under the
‘Twin’ brand.
2
It has strategically planned to reduce the number of
De-risking measures products to strengthen focus across its key selected
GEOGRAPHIC
The Company exports to over 40 countries across products.
RISK
the globe
Excessive dependence on It intends to emerge among the top-three brands
any specific region could
5
in the countries to which it is exporting its products,
put pressure on revenues. De-risking measures
over the next five years. QUALITY
This Company’s manufacturing facilities are ISO
Export earnings as a percentage of aggregate RISK
9001:2008-certified, endorsing its quality practices .
revenue have increased by 90 bps to 25.7% in
Quality inconsistency A batch-wise checking procedure is undertaken for
2012-13.
might impact offtake and every product batch at regular intervals to reinforce
Linc customises its products according to the
weaken brand equity. AQLs (accepted quality levels).
demands of the customers from different countries.
The Company has invested in acquiring new
Split between domestic and export earnings have
machines to ensure enhanced automation and
gradually altered to 74:26 in 2012-13, representing
integration and thereby improving the quality.
a fairly balanced sales mix.

Directors’
report
Your Directors have pleasure in presenting their 19th Annual Report together with the Finance Cost: The Finance cost was iii) proper and sufficient care has been
audited accounts of the Company for the year ended 31st March, 2013. down by 34.3% at `248.31 Lacs in taken for maintenance of adequate
2012-13 from `378.04 Lacs in 2011- accounting records in accordance with
Financial Highlights (` in Lacs)
12. The Finance Cost / Turnover was the provisions of the Companies Act,
2012 – 13 2011 – 12 0.8% in 2012-13 as compared 1.4% in 1956, for safeguarding of the assets of
Sales & Other Operational Income 30525.70 27504.89 2011-12. the Company and for preventing and
Other Income 37.96 14.66 detecting fraud and other irregularities;
Working Capital: The year-end debtors
Profit before depreciation, interest and taxation 1398.98 1027.47
are 53 days of the sales for the year as iv) the annual accounts have been
Finance Cost 248.31 378.04
compared to 44 days in the previous prepared on a going concern basis.
Depreciation 446.88 430.21 year. The inventory holding is for 80
Profit before Tax 703.79 219.22 days’ sales as compared to 84 days in Corporate Governance
Provision for Taxation – Current 150.00 43.90 the previous year. The Company had complied with the
– Deferred 12.36 3.92 requirements of Corporate Governance
Fixed Assets: The Company spent in terms of clause 49 of the Listing
– Income Tax for earlier years – 1.78
`676.40 Lacs on acquisition of Fixed Agreement with Stock Exchanges. A
Profit after Tax 541.43 169.62
Assets, mainly consisting of moulds and separate report each on Management
Add: Credit Balance of the previous year 288.41 267.40
machines at existing facilities. Discussion and Analysis and Corporate
Amount available for Appropriation 829.84 437.02
Governance is attached to this report
Transfer to General Reserve 300.00 - Directors’ Responsibility
as Annexure – “A” and Annexure – “C”
Proposed Dividend 207.90 127.87 Statement
along with Auditors’ Certificate on its due
Corporate Tax on Dividend 33.73 20.74 Pursuant to Section 217(2AA) of the
compliance.
Balance carried to Balance Sheet 288.21 288.41 Companies Act, 1956, the Directors
hereby confirm that:- Listing
The equity shares of the Company are
Dividend i) in the preparation of the annual
listed on BSE Limited (BSE), and The
Your Directors recommend a Dividend of `1.50 per equity share (previous year `1.00 accounts, the applicable accounting
Calcutta Stock Exchange Limited (CSE).
per equity share) for the year ended 31st March, 2013. standards had been followed;
The 20,00,000 Equity Shares alloted during the year on preferential basis will be ii) appropriate accounting policies Directors
have been selected and applied During the year Shri Prakash Jalan,
entitled to pro-rata dividend from the date of allotment.
consistently and have made judgements Promoter Director and Shri S. L.
Kochar, Independent, Non-Executive
Financial Performance and estimates that are reasonable and
prudent so as to give a true and fair view Director of the Company, resigned from
Performance: During the year under review, the Company’s Sales (incl. Other Operational
of the state of affairs of the Company as the Directorship with effect from 10th
Income) increased by 10.9% to `30525.70 Lacs as compared to `27504.89 Lacs
at 31st March, 2013 and of the profit of November, 2012 and 12th February,
during the preceding year. The Company spend `481.03 Lacs (1.6% of Sales) on
the Company for the year ended on that 2013 respectively. The Directors
Advertisement in 2012-13 as compared `1280.35 Lacs (4.7% of Sales) in 2011-12.
date; have placed on record their sincere
The Profit after Tax during the year was `541.43 Lacs.

Annexure- B
appreciation for the very valuable the report of Board of Directors) Rules, A. Conservation of Energy B. Technology Absorption
contribution made by Shri Prakash Jalan 1988 is annexed as Annexure - B. a) The following energy conservation The Company has no separate R &
and Shri S. L. Kochar during their tenure measures are taken on continuing D section. The Company is however,
as Director. Particulars of Employees
basis:- developing new products and upgrading
The Company does not have any
In accordance with the provisions of existing products and also their
employee falling within the scope of 1. Regular preventive maintenance of
Companies Act, 1956 and the Articles of packaging to meet the changing market
Section 217 (2A) of the Companies Act, all equipment for better efficiency.
Association of the Company, Dr. Ranjan taste / profile.
1956 read with Companies (Particulars 2. Improvement of electrical power
Das, Director of the Company, retire by of the Employees) Rules, 1975. load factor. C. Foreign Exchange Earnings
rotation at the ensuing Annual General
3. Optimise the use of energy through
and Outgo
Meeting and being eligible, offer himself Auditors a) Activities relating to exports;
for reappointment. improved operational method.
Your Directors request you to appoint initiatives taken to increase exports:-
Auditors for the Current Financial Year. b) Additional investments and proposals Development of Innovative packaging
Conservation of Energy,
being implemented for reduction of and products for export markets along
Technology Absorption and
Acknowledgement consumption of energy. with improvement in quality and cost.
Foreign Exchange Earnings &
Your Directors express their appreciation Regular participates in important
Outgo The Company is however, carrying on
to all the employees for their valuable international fairs / exhibitions held
A statement pursuant to section 217(1) continuous education and awareness
contribution. Your directors also wish to across the globe. Special emphasis
(e) of the Companies Act, 1956, giving programs for its employees for energy
express their gratitude for the continued on marketing Company’s product in
details of measures taken towards conservation. But no major specific
co-operation, support and assistance Africa and Central Asia.
conservation of energy, technology investment proposals are envisaged.
provided by all the valued Channel
absorption, foreign exchange earnings c) Impact of measures undertaken b) Total Foreign Exchange used and
Partners, Distributors, Suppliers,
and outgo in accordance with the under (a) and (b) above for earned:-
Bankers, Shareholders, the Central and
Companies (Disclosure of particulars in reduction of energy consumption The foreign exchange used and
State Governments.
and its consequent impact on cost of earned during the year by the
production. Company are as under: -
For and on behalf of the Board
The Company is not a major user of Foreign Exchange Used:-
energy. However, the measures taken `3410.80 Lacs
Place: Kolkata Deepak Jalan Aloke Jalan by the Company will result in saving Foreign Exchange Earned:-
Dated: 30th May, 2013 Managing Director Whole Time Director of energy. `7595.30 Lacs

Corporate
governance
report
Annexure - C
1. Company’s Philosophy on values of transparency, empowerment, There is no permanent Chairman in the Board. None of the Directors is a member of more
Code of Governance accountability, independent monitoring than ten Committees or Chairman of more than five Committees across all Companies.
The Company firmly believes in and has and environmental consciousness. The
Attendance of each Director at the Board Meetings and the Last
consistently endeavoured to practice Company makes its best endeavours to
Annual General Meeting
good Corporate Governance. A good uphold and nurture these core values in
During the financial year ended March 31, 2013, six Board Meetings were held on
corporate governance consists of a all aspects of its operations.
23rd April, 2012, 28th May, 2012, 7th August, 2012, 17th September, 2012, 10th
combination of business practices which November, 2012 and 12th February, 2013. The attendance of each Director at Board
result in enhancement of the value 2. Board of Directors
Meetings and the last Annual General Meeting (AGM) is as under:
of the Company to shareholders and Composition and Category
Name of the Directors No. of Board Attendance at last AGM
simultaneously enable the Company to The present strength of the Board of
meetings attended held on 17.09.2012
fulfill its obligations to other stakeholders Directors is five, whose composition is
Shri S. L. Kochar* 3 Present
such as customers, employees and given below:
Shri Naresh Pachisia 5 Present
financiers, and to the society in general. 2 Promoter, Executive Directors
Shri K. N. Ranasaria 6 Present
The Company further believes that such 3 Independent, Non-Executive Dr. Ranjan Das 3 Present
practices are founded upon the core Directors. Shri Deepak Jalan 6 Present
Shri Aloke Jalan 3 Leave of Absence
The composition of the Board of Directors and also the number of other Board of
Shri Prakash Jalan* NIL Leave of Absence
Directors or Board Committees of which he is a member/Chairperson are as under:
*Shri Prakash Jalan, Promoter Director and Shri S. L. Kochar, Independent, Non- Executive Director
Name of the Director Category No. of No. of Membership/
have been resigned from the Board w.e.f. 10th November, 2012 and 12th February, 2013 respectively.
Other Chairmanship
Directorship* of other Board
Code of Conduct 4. Audit Committee
Committee +
The Code of Conduct and ethics as The Audit Committee presently comprises
Shri Deepak Jalan Promoter, Executive 1 Nil
adopted by the Board of Directors of the of three Directors, two of whom are
Shri Aloke Jalan Promoter, Executive Nil Nil
Company is applicable to its Directors Independent and Non-Executive. All
Shri Naresh Pachisia Independent, 8 6 (as Member) and Senior Executives. All the Board these Directors possess knowledge of
Non- Executive Members and Senior Management corporate finance, accounts and law. The
Shri K. N. Ranasaria Independent, Nil Nil personnel have affirmed compliance with Audit Committee was re-constituted with
Non- Executive the code of conduct. A declaration to this the induction of Shri Naresh Pachisia,
Dr. Ranjan Das Independent, 1 2 (as Member) effect signed by the Managing Director Independent, Non-Executive Director
Non- Executive is attached and forms part of the Annual in lieu of Shri S. L. Kochar. During the
* Directorships in Private Companies are not included Report of the Company. The Code of financial year ended March 31, 2013,
+ Only covers membership / chairmanship of Audit Committee and Shareholder / Investor Conduct of the Company has been four Audit Committee Meetings were
Grievance Committee. posted on the website at www.lincpen. held on 28th May, 2012, 7th August,
Shri Prakash Jalan, Promoter Director and Shri S. L. Kochar, Independent, Non- Executive Director com for general viewing. 2012, 10th November, 2012 and 12th
have been resigned from the Board w.e.f. 10th November, 2012 and 12th February, 2013
respectively.
February, 2013. The attendance of the

Members were as under- as the Secretary to the Committee. The 6. Shareholders’ Committee Ranasaria as the Chairman and Shri
Members No. of Statutory Auditor and the Internal Auditor i) Share Transfer Committee: Deepak Jalan. The Committee is to
Meetings of the Company is permanent invitee at The Share Transfer Committee comprises oversee the redressal of the Shareholders’
Attended the meetings of the Committee. and Investors’ grievances in relation to
of Shri Deepak Jalan and Shri Naresh
Shri S. L. Kochar 3 Pachisia. The Committee deal with transfer of shares, non-receipt of Annual
5. Remuneration Policy
Shri K. N. Ranasaria, 4 various matters relating to share Report, non-receipt of dividend etc. The
Non-executive directors are remunerated
Chairman transmission, issue of duplicate share total number of complaints received
by way of sitting fees and are also
Shri Deepak Jalan 4 certificates, approving the split and and replied, to the satisfaction of the
entitled to a commission (to divided
Shri Naresh Pachisia 1 consolidation requests and other matters shareholders during the year were 5.
among them in such proportion as the
Board may determine from time to time) relating to transfer and registration of There were no outstanding complaints as
Shri Naresh Pachisia was inducted in the on 31st March, 2013.
not exceeding 1% of the net profits only. shares. During the financial year ended
Audit Committee wef 12.02.2013
The Company pays remuneration by 31st March, 2013, 7 (seven) Share iii) Compliance Officer:
The role, powers, duties and terms of way of Salary, Perquisites, Allowances Transfer Committee Meetings were held. The Board has designated Shri N. K.
reference of the Audit Committee cover the and Commission to Managing Director Number of Shares pending for transfers Dujari, G. M. – Finance & Company
matter specified under Clause 49 of the and Whole Time Director, as approved as on 31st March, 2013 were Nil. Secretary as the compliance officer.
Listing Agreement and Section 292A of by the members and as permitted under
ii) Shareholder/Investor Grievances
the Companies Act, 1956, besides other Schedule XIII to the Companies Act, 7. General Body Meeting
Committee:
terms as may be referred by the Board 1956. The Details of Remuneration paid Location and time, where last three
of Directors. The Company Secretary acts The Shareholder / Investor Grievances
to Directors are as under: Annual General Meetings were held is
Committee comprises of Shri K. N.
given below:
Name of the Relation Salary Benefits Sitting Commission Total Service
Director with other Fees contract/
Directors Notice
Financial Year Date Location of the Meeting Time
period/
Severance 2009 – 2010 15.09.10 Shripati Singhania Hall, 3.30 p.m.
` ` ` ` ` fees 94/2, Chowringhee Road,
Shri Deepak Brother 48,00,000 5,78,725 – – 53,78,725 Terms
Kolkata – 700 020
Jalan of Whole of office
Time valid upto 2010 – 2011 08.09.11 Shripati Singhania Hall, 10.30 a.m.
Director 30.09.15.
No notice 94/2, Chowringhee Road,
period & Kolkata – 700 020
severance
fee. 2011 – 2012 17.09.12 Shripati Singhania Hall, 3.30 p.m.
Shri Aloke Brother of 42,00,000 5,19,000 – – 47,19,000 -do- 94/2, Chowringhee Road,
Jalan Managing
Kolkata – 700 020
Director
Shri Prakash - do - – – – – –
One special resolution was passed at 16th Annual General Meeting of the Company held
Jalan
Shri S. L. None – – 33,000 – Retire by on 15.09.2010 and three special resolutions were passed at 18th Annual General Meeting
Kochar rotation of the Company held on 17.09.2012. No special resolution is proposed to be conducted
Shri Naresh None – – 52,750 2,00,000 -do- through postal ballot at the forthcoming AGM to be held on 18th September, 2013.
Pachisia
Shri K. N. None – – 64,000 2,00,000 -do-
Ranasaria
Dr. Ranjan Das None – – 30,000 2,00,000 -do-
Shri Prakash Jalan, Promoter Director and Shri S. L. Kochar, Independent, Non- Executive Director have
been resigned from the Board w.e.f. 10th November, 2012 and 12th February, 2013 respectively.

8. Disclosures: and the same is periodically reviewed by 10. General Shareholder Information:
i) Details of related party transactions the Board. Further, the Company has Detailed information in this regard provided in the shareholder information section
during the year have been set out under adequate internal control systems to forms part of this Annual Report.
Note No. ‘27.5’ of Notes on Accounts identify the risk at appropriate time and
i) Annual General Meeting
of the Annual Accounts. However, the to ensure that the executive management
- Date and Time : 18th September, 2013 at 3.30 p.m.
Company does not have any related party controls the risk in a properly defined
- Venue : Shripati Singhania Hall,
transactions, which may have potential framework.
94/2, Chowringhee Road
conflict with the interests of the Company
9. Means of Communication Kolkata – 700 020
at large. The transactions with related
i) A half-yearly report was not sent to
parties are at prices which are reasonable ii) Financial Calendar
each household of the shareholders.
having regard to the prevailing market Financial Year : 1st April to 31st March
Shareholders were intimated through
prices for such goods / services. Results : 1st Qtr – 2nd week of August, 2013
the press and the Company’s website –
ii) The Company has complied with the www.lincpen.com about the quarterly 2nd Qtr – 2nd week of November, 2013
requirements of regulatory authorities performance and financial results of the 3rd Qtr – 2nd week of February, 2014
on capital markets and no penalties/ Company. 4th Qtr – end May, 2014
strictures have been imposed against it
ii) The quarterly and half yearly results
during the last three years. iii) Book closure date : 11.09.2013 to 18.09.2013 on account of
are published in the leading newspapers
AGM and Dividend.
iii) The Company is regularly complying in English and Bengali such as Financial
with all the mandatory requirements Express, HT Mint, The Business Standard iv) Dividend payment date : After18th September, 2013
of Clause 49 of the Listing Agreement and Kalantar.
regarding Board Composition, Code of v) Listing of Equity Shares on : i) The Calcutta Stock Exchange Ltd.
conduct, Audit Committee, quarterly and iii) As per the Listing Agreement with the Stock Exchanges at 7, Lyons Range, Kolkata – 700 001
annual disclosures etc. The Company has stock exchanges, certain documents /
ii) B S E Limited
adopted the non-mandatory requirement informations such as quarterly / annual
P J Towers, Dalal Street,
of remuneration committee. financial results, shareholding pattern
Fort, Mumbai – 400 001
and corporate governance are accessible
iv) The Non – executive Directors does
on the website www.corpfiling.co.in. vi) Listing Fees : Listing fee for the year 2012 – 2013 has been
not hold any shares of the Company as
iv) The Company results and official paid to the above Stock Exchanges.
on 31st March, 2013.
news release are displayed on the
v) The particulars of directors seeking vii) Stock Code : Bombay Stock Exchange - 531241
Company’s Website: www.lincpen.com.
reappointment are given in the Calcutta Stock Exchange – 10022035
explanatory statement to the notice of v) No presentation have been made to Demat ISIN No. – INE 802B01019
Annual General Meeting. institutional investors or analysts etc.
vi) The Company had no subsidiary as vi) Management Discussion and

on 31st March, 2013. Analysis forms part of the Annual Report,
vii) The Company has laid down risk which is posted to the shareholders of
assessment and minimisation procedures the Company.

viii) Market Price Data – High /Low during each month of the year ended 31st March, Distribution of Shareholding by Size:
2013, at the Bombay Stock Exchange. Range of Shareholders Shares
Month High (`) Low (`) Shares Number % Nos. %
April, 2012 56.00 49.15 1 to 500 4,852 86.01 5,34,902 3.62
May, 2012 52.50 43.75 501 to 1000 357 6.33 2,97,566 2.01
June, 2012 50.45 44.50 1001 to 5000 325 5.76 7,71,266 5.22
July, 2012 51.00 42.00 5001 to 10000 42 0.75 3,09,560 2.09
August, 2012 45.75 40.90 10001 & above 65 1.15 1,28,72,666 87.06
September, 2012 54.10 42.50 Total 5,641 100.00 1,47,85,960 100.00
October, 2012 51.90 45.00

xii) Dematerialisation of Shares:
November, 2012 57.20 44.00
Holding No. of Holder % No. of Shares %
December, 2012 58.45 46.50
Physical 830 14.71 22,21,335 15.02
January, 2013 53.85 45.30
Demat 4,811 85.29 1,25,64,625 84.98
February, 2013 48.10 40.70
Total 5,641 100.00 1,47,85,960 100.00
March, 2013 49.80 35.55
xiii) Outstanding GDR/ADR or any convertible Instruments: Not Applicable
ix) Share Price performance in 2012-13 comparison to broad based indices – BSE xiv) The manufacturing facilities of the Company are located at:
Sensex a. Linc Estate, Usthi Road, Serakole, 24 Parganas (South), West Bengal; and
% Change in Linc’s Share Price: % Change in BSE Sensex b. Falta SEZ, Sector II, Shed No.2, Falta, 24 Parganas (South), West Bengal
(-) 31.17% 8.23%
xv) Address for Correspondence:
For Share Transfer and related queries - For General Assistance
x) Share Transfer System: Presently, the share transfers which are received in physical
M/s. Maheswari Datamatics Pvt. Ltd. Mr. N. K. Dujari,
form are normally effected within a maximum period of 15 days from the date of
6, Mangoe Lane, 2nd Floor, G. M. - Finance & Company Secretary
receipt and Demat are confirmed within a maximum period of 14 days by Registrar
Kolkata – 700 001 Linc Pen & Plastics Ltd
and Share Transfer Agent – M/s. Maheshwari Datamatics Pvt. Ltd, 6, Mangoe Lane,
Phone – 22435029/5809, 3, Alipore Road, Kolkata – 700 027
Kolkata-700 001.
Fax – 2248 4787 Phone – 3041 2100 / 2479 0248,
e-mail – [email protected] Fax – 2479 0253
xi) Distribution of Shareholding: e-mail – [email protected]
Distribution of Shareholding by Ownership:
Holding Pattern No. of Shares Shareholding % Declaration
1 Promoters & Associates 89,13,035 60.28 As provided under Clause 49 of the Listing Agreement with Stock Exchanges, all the
2 NRI, FIIs, etc. 21,66,522 14.66 Directors and Senior Management have affirmed compliance with the Companies Code
3 Private Corporate Bodies 13,59,210 9.19 of Conduct during the financial year ended 31st March, 2013.
4 Indian Public 23,47,193 15.87
Total 1,47,85,960 100.00 Deepak Jalan
Kolkata, 30th May, 2013 Managing Director

CEO / CFO CERTIFICATION AUDITOR’S CERTIFICATE ON
CORPORATE GOVERNANCE
The Board of Directors
Kolkata
To the Members of Linc Pen & Plastics Limited
Re: Financial Statements for the financial year 2012-13 – Certification by MD and
GM Finance We have examined the compliance of the conditions of Corporate Governance by Linc
Pen & Plastics Limited for the year ended 31st March, 2013, as stipulated in Clause
We, Deepak Jalan, Managing Director and N. K. Dujari, G. M.- Finance & Company
49 of the Listing Agreement of the said Company with the Stock Exchanges.
Secretary, of Linc Pen & Plastics Limited, on the review of financial statements and
cash flow statement for the year ended 31st March, 2013 and to the best of our
The compliance of conditions of Corporate Governance is the responsibility of the
knowledge and belief, hereby certify that:-
management. Our examination was limited to procedures and implementation thereof,
1. These statements do not contain any materially untrue statements or omit any adopted by the Company for ensuring the compliance of the conditions of Corporate
material fact or contain statements that might be misleading; Governance. It is neither an audit nor an expression of the opinion on the financial
2. These statements together present a true and fair view of the Company’s affairs statements of the Company.
and are in compliance with existing accounting standards, applicable laws and
regulations. In our opinion and to the best of our information and according to the explanations
given to us, we certify that the Company has complied with the conditions of Corporate
3. There are, to the best of our knowledge and belief, no transactions entered into by
Governance as stipulated in the aforementioned Listing Agreement.
the Company during the year ended 31st March, 2013 which are fraudulent illegal
or violative of Company’s Code of Conduct.
We further state that such compliance is neither an assurance as to the future viability
4. We accept responsibility for establishing and maintaining internal controls, for of the Company nor the efficiency or effectiveness with which the management has
financial reporting, we have evaluated the effectiveness of the internal control conducted the affairs of the Company.
systems of the Company pertaining the financial reporting and we have disclosed to
the auditors and the Audit Committee those deficiencies in the design or operation
of such internal controls of which we are aware and the steps we have taken or For G.P. AGRAWAL & CO.
propose to take to rectify these deficiencies. Chartered Accountants
Firm Registration No. 302082E
5. We have indicated to the Auditors & the Audit Committee : -
(i) there have been no significant changes in internal control over financial
reporting during the period. 7A, Kiran Shankar Ray Road (CA Ajay Agrawal)
(ii) there have been no significant changes in accounting policies during the period. Kolkata- 700 001 Membership No. 17643
(iii) there have been no instances of significant fraud of which we have become Date: 30th May, 2013 Partner
aware and the involvement therein, of management or an employee having
significant role in the Company’s internal control systems over financial reporting.
N. K. Dujari Deepak Jalan

Kolkata G. M. – Finance & Managing Director
30th May, 2013 Company Secretary

Independent Auditors’ Report Annexure to the Auditors Report
To Referred to in our report to the members of LINC PEN AND PLASTICS LIMITED on the accounts for the year ended
The Members of 31st March 2013
Linc Pen and Plastics Limited
Report on the Financial Statements (i) In the case of the Balance Sheet, of the state of i) a) The Company has maintained proper c) The Company has not taken any loans,
We have audited the accompanying financial affairs of the Company as at March 31, 2013; records showing full particulars, including secured or unsecured, from companies,
statements of Linc Pen and Plastics Limited (“the (ii) In the case of the Profit and Loss Account, of the quantitative details and situation of its fixed firms or other parties covered in the register
Company”), which comprise the Balance Sheet as at profit for the year ended on that date; and assets. maintained under section 301 of the Act.
March 31, 2013, the Statement of Profit and Loss and (iii) In the case of the Cash Flow Statement, of the
Cash Flow Statement for the year then ended, and a cash flows for the year ended on that date. b) The fixed assets have been physically d) As the Company has not taken any loans,
summary of significant accounting policies and other verified during the year by the management. secured or unsecured, from companies,
explanatory information. Report on other Legal and Regulatory Requirement
1. As required by the Companies (Auditor’s Report) To the best of our knowledge, no material firms or other parties covered in the register
Management’s Responsibility for the Financial Statements Order, 2003 (“the Order”) issued by the Central discrepancies were noticed on such maintained under section 301 of the Act,
Management is responsible for the preparation of Government of India in terms of sub-section verification. the provisions of para (iii)(f) to (iii)(g) of
these financial statements that give a true and fair (4A) of section 227 of the Act, we give in the the paragraph 4 of the said order are not
view of the financial position, financial performance Annexure a statement on the matters specified in c) The Company has not disposed off
applicable to the company.
and cash flows of the Company in accordance with paragraphs 4 and 5 of the Order. substantial part of fixed assets during the
the Accounting Standards referred to in sub-section
2. As required by section 227(3) of the Act, we year and the going concern status of the iv) In our opinion and according to the information
(3C) of section 211 of the Companies Act, 1956
report that: company is not affected. and explanations given to us, there is adequate
(“the Act”). This responsibility includes the design,
implementation and maintenance of internal control a) We have obtained all the information internal control system, commensurate with the
and explanations which to the best of our ii) a) The inventories have been physically verified
relevant to the preparation and presentation of the size of the company and the nature of its business
knowledge and belief were necessary for the during the year by the management at
financial statements that give a true and fair view and for the purchase of inventory, fixed assets and for
are free from material misstatement, whether due to purpose of our audit; reasonable intervals. In respect of inventories
the sale of goods and services. During the course
fraud or error. b) In our opinion proper books of account lying with third parties, confirmation has
of our audit, we have not observed any major
as required by law have been kept by been obtained from them.
Auditor’s Responsibility weakness in internal control system.
the Company so far as appears from our
Our responsibility is to express an opinion on b) In our opinion and according to the
examination of those books v) a) In our opinion and according to the
these financial statements based on our audit. We
c) The Balance Sheet, Statement of Profit and information and explanations given to us, the
conducted our audit in accordance with the Standards information and explanations given to us,
Loss, and Cash Flow Statement dealt with by procedures of physical verification of stocks
on Auditing issued by the Institute of Chartered particulars of contracts or arrangements
Accountants of India. Those Standards require that this Report are in agreement with the books followed by the management are reasonable
referred to in section 301 of the Act have
we comply with ethical requirements and plan and of account. and adequate in relation to the size of the
been entered in the register required to be
perform the audit to obtain reasonable assurance d) In our opinion, the Balance Sheet, Statement company and nature of its business.
maintained under that section.
about whether the financial statements are free from of Profit and Loss, and Cash Flow Statement
material misstatement. comply with the Accounting Standards c) On the basis of our examination, we
b) In our opinion and according to the
An audit involves performing procedures to obtain referred to in subsection (3C) of section 211 are of the opinion that the company is
information and explanation given to us,
audit evidence about the amounts and disclosures of the Companies Act, 1956; maintaining proper records of inventory.
these transactions made in pursuance of
in the financial statements. The procedures selected e) On the basis of written representations The discrepancies noticed on verification of
such contracts have been made at prices
depend on the auditor’s judgment, including the received from the directors as on March 31, inventories by the management as compared
2013, and taken on record by the Board of which are reasonable having regard to
assessment of the risks of material misstatement of the to book records were not material and these
financial statements, whether due to fraud or error. In Directors, none of the directors is disqualified prevailing market prices at the relevant time.
have been properly dealt with in the books of
making those risk assessments, the auditor considers as on March 31, 2013, from being appointed
as a director in terms of clause (g) of sub- account. vi) The Company has not accepted any deposit
internal control relevant to the Company’s preparation
and fair presentation of the financial statements in section (1) of section 274 of the Companies within the meaning of section 58A, 58AA or any
iii) a) The Company has not granted any loans,
order to design audit procedures that are appropriate in Act, 1956. other relevant provisions of the Act and the rules
secured or unsecured, to companies, firms
the circumstances. An audit also includes evaluating framed there under.
or other parties covered in the register
the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made maintained under section 301 of the Act. vii) In our opinion, the internal audit system of the
For G.P. AGRAWAL & CO.
by management, as well as evaluating the overall Chartered Accountants company is commensurate with the size of the
b) As the Company has not granted any loans,
presentation of the financial statements. Firm Registration No. 302082E company and the nature of its business.
secured or unsecured, to companies, firms
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our or other parties covered in the register viii) We have broadly reviewed the cost records
audit opinion. maintained under section 301 of the Act, maintained by the Company pursuant to the
the provisions of para (iii)(b) to (iii)(d) of Companies (Cost Accounting Records) Rules,
Opinion CA. Ajay Agrawal
In our opinion and to the best of our information and the paragraph 4 of the said order are not 2011, prescribed by the Central Government
Membership No. 17643
according to the explanations given to us, the financial applicable to the company. under section 209(1)(d) of the Companies Act,
Partner
statements give the information required by the Act in
the manner so required and give a true and fair view 7A, Kiran Shankar Ray Road,
in conformity with the accounting principles generally Kolkata – 700001
accepted in India: Dated: The 30th Day of May, 2013

1956 and we are of the opinion that prima other statutory dues with appropriate trading in shares, securities, debentures or other xix) The Company has not issued any debenture.
facie the prescribed cost records have been authorities. According to the information investments. Therefore, the provisions of para Therefore, the provisions of para (xix) of the
maintained. We have, however, not made a and explanations given to us, no undisputed (xiv) of the paragraph 4 of the said order are not paragraph 4 of the said order are not applicable
detailed examination of the cost records with a amount payable in respect of the aforesaid applicable to the company. to the company.
view to determine whether they are accurate or dues were outstanding as at 31st March,
xv) According to the records of the Company and xx) The Company has not raised any money during
complete. 2013 for a period of more than six months
according to the information and explanation the year by public issue. Therefore, the provisions
from the date of becoming payable.
ix) a) According to the records, the Company is given to us, the Company has not given any of para (xx) of the paragraph 4 of the said order
regular in depositing undisputed statutory b) The disputed statutory dues aggregating to guarantee for loans taken by others from bank or are not applicable to the company.
dues including Provident Fund, Investor `374.57 lacs that have not been deposited financial institutions.
xxi) In our opinion and according to the information
Education and Protection Fund, Employees’ on account of matters pending before
xvi) According to the records of the Company and and explanation given to us, no fraud on or by
State Insurance, Income Tax, Service appropriate authorities are as under:
the information and explanations given to us, the company has been noticed or reported during
Tax, Sales Tax, Custom Duty, Cess and
the term loans outstanding at the beginning of the year that causes the financial statements
the year and those raised during the year have materially misstated.
Name of the Nature of Dues Amount Period to which Forum where been applied for the purposes for which they were
Statute (` lacs) the amount relates dispute is pending raised.
For G.P. AGRAWAL & CO.
The Income Tax Income Tax 20.49 A.Y. 2002-03 ITAT
xvii) According to the records of the Company and Chartered Accountants
Act, 1961 Firm Registration No. 302082E
according to the information and explanation
The Income Tax Income Tax 37.48 A.Y. 2003-04 ITAT given to us and on overall examination of the
Act, 1961 Balance Sheet of the Company, we report that no
The Income Tax Income Tax 21.72 A.Y. 2004-05 ITAT funds raised on short-term basis have been used
CA. Ajay Agrawal
Act, 1961 for long-term investment.
Membership No. 17643
The Income Tax Income Tax 27.91 A.Y. 2005-06 ITAT xviii) The Company has not made any preferential Partner
Act, 1961 allotment of shares to parties and companies 7A, Kiran Shankar Ray Road,
covered in the register maintained under section Kolkata – 700001
The Income Tax Income Tax 110.99 A.Y. 2006-07 Appellate order of
301 of the Act. Dated: The 30th Day of May, 2013
Act, 1961 CIT(A)

Act, 1961

Act, 1961
The Income Tax Income Tax 83.75 A.Y. 2009-10 Appellate order of
Act, 1961 CIT(A)
Total 374.57
x) The Company has no accumulated losses and has xii) According to the information and explanations
not incurred any cash losses during the financial given to us, the Company has not granted loans
year covered by our audit or in the immediately and advances on the basis of security by way of
preceding financial year. pledge of shares, debentures and other securities.
xi) According to the records of the Company xiii) The provisions of any special statute applicable to
examined by us and the information and Chit Fund, Nidhi or Mutual Benefit Society are not
explanations given to us, the Company has not applicable to this Company.
defaulted in repayment of dues to any financial
xiv) According to the information and explanations
institution or bank. The Company has not issued
given to us, the Company is not dealing or
any debentures.

Balance Sheet as at 31st March, 2013 Statement of Profit and Loss for the year ended 31st March, 2013
(` in Lacs) (` in Lacs)
Particulars Note No. As at As at Particulars Note Year ended Year ended
31st March, 2013 31st March, 2012 No. 31st March, 2013 31st March, 2012
I. EQUITY AND LIABILITIES I. INCOME
(1) Shareholders' funds Revenue from operations 19
(a) Share capital 2 1,478.60 1,278.60 Sale of goods (Gross) 30,152.35 27,168.03
(b) Reserves and surplus 3 5,579.06 3,479.26 Less: Excise duty 178.46 67.31
7,057.66 4,757.86 Net Sale of goods 29,973.89 27,100.72
(2) Non-current liabilities Other operating revenues 551.81 404.17
(a) Long-term borrowings 4 98.82 179.07
30,525.70 27,504.89
(b) Deferred tax liabilities (Net) 5 201.79 189.43
II. Other incomes 20 37.96 14.66
(c) Long-term provisions 6 84.38 66.68
III. Total revenue (I + II) 30,563.66 27,519.55
384.99 435.18
IV. EXPENSES
(3) Current liabilities
Cost of materials consumed 21 11,170.71 7,332.03
(a) Short-term borrowings 7 2,930.80 3,987.51
(b) Trade payables 8 2,736.36 2,644.90 Purchases of stock-in-trade 22 9,952.95 11,705.71
(c) Other current liabilities 9 1,432.43 1,232.30 (Increase)/decrease in inventories of 23 476.95 532.43
(d) Short-term provisions 10 246.63 152.64 finished goods, work-in-progress
7,346.22 8,017.35 and stock in trade
TOTAL 14,788.87 13,210.39 Employee benefits expense 24 1,560.16 1,527.47
II. ASSETS Finance costs 25 248.31 378.04
(1) Non-current assets Depreciation and amortization expense 446.88 430.21
(a) Fixed assets 11 Other expenses 26 6,003.91 5,394.44
(i) Tangible assets 2,906.55 2,733.68 Total expenses 29,859.87 27,300.33
(ii) Intangible assets 19.64 25.97 V. Profit before exceptional and extraordinary 703.79 219.22
(iii) Capital work-in-progress 35.32 64.49 items and tax (III - IV)
2,961.51 2,824.14 VI. Exceptional items - -
(b) Long-term loans and advances 12 234.36 262.54 VII. Profit before extraordinary items and tax 703.79 219.22
(c) Other non-current assets 13 15.34 18.85 (V - VI)
3,211.21 3,105.53 VIII. Extra ordinary items - -
(2) Current assets IX. Profit before tax (VII - VIII) 703.79 219.22
(a) Inventories 14 6,607.22 6,301.70 X. Tax expense:
(b) Trade receivables 15 4,429.32 3,327.30 Current tax 150.00 43.90
(c) Cash and bank balances 16 29.76 22.57 Deferred tax 12.36 3.92
(d) Short-term loans and advances 17 477.64 418.46
Income tax for earlier years - 1.78
(e) Other current assets 18 33.72 34.83
162.36 49.60
11,577.66 10,104.86
XI. Profit for the year (IX-X) 541.43 169.62
TOTAL 14,788.87 13,210.39
XII. Earnings per equity share - Basic and 27.4 3.91 1.33
Significant Accounting Policies 1
diluted (`)
Notes to Accounts 27
(Face value `10/- per equity share)
Significant Accounting Policies 1
The accompanying Significant Accounting Policies and Notes to Accounts are an integral part
of the Financial Statements. Notes to Accounts 27
As per our report of even date attached.
The accompanying Significant Accounting Policies and Notes to Accounts are an integral part
For G. P. Agrawal & Co. For and on behalf of the Board of the Financial Statements.
Chartered Accountants As per our report of even date attached.
For G. P. Agrawal & Co. For and on behalf of the Board
Deepak Jalan Aloke Jalan Chartered Accountants
Managing Director Whole Time Director Firm Registration No. 302082E
(CA. Ajay Agrawal)
Partner Deepak Jalan Aloke Jalan
Membership No.17643 Managing Director Whole Time Director
(CA. Ajay Agrawal)
Partner
7A, Kiran Shankar Ray Road N. K. Dujari Membership No.17643
Kolkata - 700 001 G.M.- Finance &
The 30th day of May, 2013 Company Secretary
7A, Kiran Shankar Ray Road N. K. Dujari

Significant Accounting Policies to Financial Statements Significant Accounting Policies to Financial Statements
1 SIGNIFICANT ACCOUNTING POLICIES v) Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with
1.1 Basis of accounting: reference to the date of addition/ disposal.
The Company prepares its accounts under the historical cost convention on accrual basis, except otherwise vi) Computer Software (Acquired) are amortised over a period of five years. Amortisation is done on straight
stated, in accordance with the generally accepted accounting principles in India and provisions of the line basis.
Companies Act, 1956.
1.6 Foreign Currency Transactions:
Accounting policies have been consistently applied except where a newly issued Accounting Standard is i) Transactions in foreign currency are initially recorded at the exchange rate at which the transaction is
initially adopted a revision to an existing Accounting Standard requires a change in the accounting policy carried out.
hitherto in use.
ii) Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the year
All Assets and Liabilities have been classified as current or non-current as per the company’s normal operating end are translated at the year end rate.
cycle and other criteria set out in the Schedule VI to the Companies’ Act, 1956. Based on the nature of
iii) Any income or expense on account of exchange difference either on settlement or on translation at the
operations and time between procurement of raw materials and their realization in cash and cash equivalents,
year end is recognized in the Statement of Profit and Loss.
the company has ascertained its operating cycle as 12 months for the purpose of current and non-current
classification of assets and liabilities. 1.7 Inventories:
i) Inventories (Other than Scrap) are valued at lower of cost and net realisable value, after providing
1.2 Use of Estimates for obsolescence, if any. Cost of inventory comprises of purchase price, cost of conversion and other
The preparation of the Financial Statements in conformity with GAAP requires management to make estimates cost incurred in bringing the Inventories to their respective present location and condition. The cost of
and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent Inventories is computed on weighted average basis except for Raw Material and Components which is
liabilities as at the date of the financial statements and reported amounts of income and expenditure during the computed on FIFO basis.
period. Difference between the actual results and estimates are recognised in the period in which the results
ii) Scrap are valued at Net Realisable Value.
are known/ materialised.
1.8 Employee Benefits:
1.3 Revenue Recognition:
i) Short-term employee benefits based on expected obligation on undiscounted basis are recognized as
i) Revenue from Sale of Goods is recognized upon passage of title to the customers.
expenses in the Statement of Profit and Loss for the period in which the related service is rendered.
ii) Sales is exclusive of Sales Tax/Vat, rebate etc.
ii) Post employment and other long-term employee benefits are recognized as an expense in the Statement
iii) Interest income is recognized on time proportion basis taking into account the amount outstanding and of Profit and Loss for the year in which the employee has rendered services. The expense is recognized
rate applicable. at the present value of the amount payable determined using actuarial valuations. Actuarial gains and
iv) All other incomes are accounted for on accrual basis. losses in respect of post employment and other long-term employee benefits are recognized in the
Statement of Profit and Loss.
1.4 Expenses:
All the expenses are accounted for on accrual basis. 1.9 Taxes on Income:
Tax expense comprises both current and deferred taxes. Current tax is determined as the amount of tax
1.5 Fixed Assets:
payable in respect of taxable income for the year. Deferred income tax reflects the impact of current year timing
i) All fixed assets are stated at cost less accumulated depreciation and impairment, if any. Cost include
differences between taxable income and accounting income for the year and reversal of timing differences of
acquisition price, duties, taxes, incidental expenses, erection expenses and interest etc. up to date the
earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantially enacted
asset is ready for intended use.
at the Balance Sheet date. Deferred tax assets (including unrecognized deferred tax assets of earlier years) are
ii) Intangible Assets expected to provide future enduring economic benefits are stated at cost less recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available
amortization and impairment, if any. Cost comprises purchase price and directly attributable expenditure against which such deferred tax assets can be realised.
on making the asset ready for its intended use.
1.10 Borrowing Cost:
iii) Capital Work-in-Progress comprises the cost of fixed assets that are not yet ready for their intended use
Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period
at the reporting date.
until the asset is ready for its intended use. A qualifying asset is one that necessarily takes a substantial period
iv) Depreciation on Fixed Assets is provided on straight-line method at the rates specified in Schedule XIV of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in
to The Companies Act, 1956 (as amended). which they are incurred. No borrowing costs were eligible for capitalisation during the year.

Significant Accounting Policies to Financial Statements Notes to Accounts
(` in Lacs)
1.11 Impairment of Assets: Particulars As at 31st March, 2013 As at 31st March 2012
Wherever events or changes in circumstances indicate that the carrying amount of fixed assets may be No. of shares Amount No. of shares Amount
impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows
Note 2 SHARE CAPITAL
expected from use or disposal thereof. If the assets are impaired, the Company recognizes an impairment loss
as the excess of the carrying amount over the recoverable amount. After impairment, depreciation is provided Authorised
on the revised carrying amount of the respective asset over its remaining useful life. A previously recognized Equity shares of `10/- each 15,000,000 1,500.00 13,000,000 1,300.00
impairment loss is increased or reversed depending on changes in circumstances. However, the carrying Issued, subscribed and fully paid up
amount after reversal is not increased beyond the carrying amount that would have prevailed by charging Outstanding at the beginning of the period 12,785,960 12,785,960
usual depreciation if there was no impairment. Add: Shares Issued for cash 2,000,000 -
1.12 Provisions, Contingent liabilities and Contingent Assets: Outstanding at the end of the period 14,785,960 1,478.60 12,785,960 1,278.60
Provisions are recognized in respect of obligations where, based on the evidence available, their existence at 1,478.60 1,278.60
the Balance Sheet date is considered probable.
Contingent Liabilities are shown by way of Notes to the Accounts in respect of obligations where, based on the a. Terms & rights attached to equity shares
evidence available, their existence at the Balance Sheet date is considered not probable. The Company has only one class of equity shares having a par value of `10 per share.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares
are entitled to receive dividends as declared from time to time. The dividend proposed by
Re-imbursement expected in respect of expenditure to settle a provision is recognised only when it is virtually the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
certain that the re-imbursement will be received. General Meeting. In the event of liquidation of the company, the holders of equity shares will
Contingent Assets are not recognized in the Accounts. be entitled to receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the
1.13 Earnings per share: shareholders.
Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extra
ordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted
b. The company has issued an aggregate of 4,785,660 (previous year 4,785,660 upto
earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of any extra
31.03.12) fully paid up equity shares of par value `10/- each without payment being received
ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings
in cash in the last 5 years immediately preceeding the balance sheet date.
per share and also the weighted average number of equity shares which could be issued on the conversion of
all dilutive potential equity shares.
c. Shareholders holding more than 5% shares in the company :
1.14 Cash flow statement:
Equity shares of `10/- each fully paid up 31st March, 2013 31st March 2012
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or No. of shares % of Holding No. of shares % of Holding
payments and item of income or expenses associated with investing or financing cash flows. The cash flows Mrs. Sarita Jalan 2,024,000 13.69 2,024,000 15.83
from operating, investing and financing activities of the Company are segregated. Mrs. Shobha Jalan 2,000,730 13.53 2,000,730 15.65
Mr. Suraj Mal Jalan 1,087,783 7.36 1,087,783 8.51
Mr. Aloke Jalan 787,216 5.32 787,216 6.16
Mr. Deepak Jalan 783,520 5.30 778,520 6.09
M/s. Linc Writing Aids Pvt. Ltd. 1,590,109 10.75 1,590,109 12.44
M/s. Mitsubishi Pencil Co. Ltd. 2,000,000 13.53 - -

Notes to Accounts Notes to Accounts
(` in Lacs)
Note 4 LONG-TERM BORROWINGS (contd.)
Particulars As at 31st March, 2013 As at 31st March 2012
(` in Lacs)
No. of shares Amount No. of shares Amount
Non Current Current
31st March, 31st March 31st March, 31st March
Note 3 RESERVES AND SURPLUS
2013 2012 2013 2012
Securities premium account
Term Loans From Banks
Balance as per last account 296.94 296.94
Indian rupee loan from banks (Secured) 6.14 7.23 - -
Add: Received during the year 1,800.00 -
Foreign currency loan from banks (Secured) 74.24 158.17 100.00 100.00
Closing Balance 2,096.94 296.94
80.38 165.40 100.00 100.00
General reserve
Amount disclosed under the head "other current - - (100.00) (100.00)
Balance as per last account 2,893.91 2,893.91
liabilities" (Note No. 9)
Add: Transfer from surplus as per statement of 300.00 -
Net Amount 80.38 165.40 - -
profit and loss
Closing Balance 3,193.91 2,893.91 a. Nature of securities :
Surplus in the statement of profit and loss i. Rupee term loan from banks carries interest @ 13.75 % p.a. & Foreign Currency loan from bank carries
Balance as per last statement 288.41 267.40 interest @ 06 mths. LIBOR plus 5.25%.
Add: Net profit for the year as per statement of 541.43 169.62 ii. Indian Rupee / Foreign Currency Loan from bank is secured by way of hypothecation of Plant and
profit and loss Machinery, Moulds and Current Assets of the company and by way of first charge on Immovable Properties
Amount available for appropriation 829.84 437.02 and Other Fixed Assets of the company and is also guaranteed by the Managing Director, Whole Time
Less: Appropriations Director and associate concern of the company.
Proposed dividend 207.90 127.87
iii. Interest @ 9.77% to 10.25% is charged on vehicle loan, which is secured by way of hypothecation of car
Tax on proposed dividend 33.73 20.74
of the Company.
Transfer to general reserve 300.00 -
Closing balance 288.21 288.41 b. Terms of Repayment of Loans:
5,579.06 3,479.26
Amount Period of Number of Amount
outstanding as maturity w.r.t. instalments as of each
a. General Reserve is primarily created to comply with the requirements of sec. 205(2A) of the Companies Act, Name of Banks / Others
on the Balance Balance Sheet on 31.03.13 instalment
1956. This is the free reserve and can be utilised for any general purpose viz. issue of bonus shares, payment Sheet date date
of dividend, buyback of shares etc. State Bank of India 180.38 18 months 6 25.00
(265.40) (30) months (10) (25.00)
b. During the year ended 31st March, 2013, dividend `1.50/- per equity share was recognised as distribution
As at 31st As at 31st
to equity shareholders. The dividend proposed by the Board of Directors is subject to the approval of the
March, 2013 March, 2012
shareholders in the ensuing Annual General Meeting.The total dividend appropriation for the year ended
Rupee loan - Current * - -
March 31, 2013 amounted to `241.63 lacs including corporate dividend tax of `33.73 lacs.
Rupee loan - Non current 6.14 7.23
c. During the year ended 31st March, 2012, dividend `1/- per equity share was recognised as distribution Foreign currency loans - Current * 100.00 100.00
to equity sharholders. The total dividend appropriation for the year ended March 31, 2012 amounted to Foreign currency loans - Non current 74.24 158.17
`148.61 lacs including corporate dividend tax of `20.74 lacs. BMW India Financial Services Pvt. Ltd. # 13.67 11 months 11 1.31
(27.22) (23 months) (23) (1.31)
Kotak Mahindra Prime Ltd. # 17.74 32 months 32 -
(-) (-) (-) (-)
Particulars As at 31st March, 2013 As at 31st March 2012 HDFC Car Loan # 10.39 32 months 32 -
(-) (-) (-) (-)
Note 4 LONG-TERM BORROWINGS As at 31st As at 31st
Term loans (Secured) March, 2013 March, 2012
- From banks Current- BMW India Financial Services Pvt. Ltd. * 13.67 13.55
Rupee loans 6.14 7.23 Non current -BMW India Financial Services Pvt. - 13.67
Foreign currency loans 74.24 158.17 Ltd.
Vehicle Loans (Secured) Current -Kotak Mahindra Prime Ltd. * 6.12 -
- From banks 6.82 Non current -Kotak Mahindra Prime Ltd. 11.62 -
- From others 11.62 18.44 13.67 Current -HDFC Car Loan * 3.57 -
98.82 179.07 Non current -HDFC Car Loan 6.82 -
* Represents current maturities of long term debts shown under "Other current liabilities" (Note No.9)
# Instalment includes interest
Figure in brackets represents figures for the previous years

Particulars As at 31st March, 2013 As at 31st March 2012 Particulars As at 31st March, 2013 As at 31st March 2012
Note 5 DEFERRED TAX LIABILITIES (NET) Note 8 TRADE PAYABLES

Deferred tax liabilities : Total outstanding dues of Micro and Small 220.21 154.04
Depreciation 225.11 205.90 Enterprises (Refer note no. 27.2)
Less : Deferred tax asset Total outstanding dues of other than Micro and 2,516.15 2,490.86
Expenses allowable for tax purpose when paid 23.32 16.47 Small Enterprises
Deferred tax liabilities (Net) 201.79 189.43 2,736.36 2,644.90
Note 9 OTHER CURRENT LIABILITIES

Note 6 LONG-TERM PROVISIONS
Current maturities of long-term debt# 123.36 113.55
Provision for employee benefits
Unpaid dividends * 11.09 11.60
- Leave encashment 84.38 66.68
Other payables
84.38 66.68
Advance from customers 125.27 184.56
Statutory liabilities $ 120.56 65.73
Trade deposits 219.15 225.62
Note 7 SHORT-TERM BORROWINGS * Unpaid salaries and other payroll dues 701.59 631.24
Loan Repayable On Demand Accrued Expenses 131.41 -
- From banks (Secured) 2,805.80 3,477.51 # Refer note no. 4 for nature of securities and
Other loans and advances terms of repayment respectively.
- From banks (Secured) 125.00 510.00 * There are no amount due and outstanding as at
2,930.80 3,987.51 Balance Sheet date to be credited to the Investor
Education and Protection Fund
* Working capital loan from bank is secured by way of hypothecation of Plant and Machinery, $ Include excise duty and cess on closing stock
Moulds and Current Assets of the company and by way of first charge on immovable properties `17.33 (PY `22.03)
and other fixed assets of the company and is also guaranteed by the mangaing director, whole 1,432.43 1,232.30
time director and associate concern of the company.
Non Current Current Note 10 SHORT-TERM PROVISIONS

Provision for employee benefits - unavailed leave 3.46 2.75
2013 2012 2013 2012
- Others
Loans Repayable on Demand from Bank
Provision for taxation 306.00
Cash Credit from Banks (Secured) 1,193.52 1,736.53
Less: Advance income tax - 305.43 0.57
Packing Credit from Bank (Secured) 1,612.27 1,740.98
Provision for proposed dividend 207.90 127.86
Short Term Loan from Bank (Secured) 125.00 510.00
Provision for tax on proposed dividend 33.73 20.74
Foreign Currency Short Term Loan from Bank (Secured)
Provision for wealth tax 1.54 0.72
2,930.80 3,987.51
246.63 152.64
Loans Repayable on Demand from Others
Indian Rupee Loan (Secured) 18.44 13.67 23.36 13.55
Amount disclosed under the head "other current - - (23.36) (13.55)
liabilities" (Note No. 10)
18.44 13.67 - -
a. Loans from Bank is secured by hypothecation of Plant & Machinery, Moulds & Current Assets
of the Company and first charge by way of Equitable Mortgage of Immoveable Properties and
other Fixed Assets of the Company and also guaranteed by Managing Director, Whole Time
Director and associate concern of the Company. The loan from banks is repayable on demand
and carries interest @ 10% to 13%.
b. Details of Long Term Borrowings guaranteed by two of its Directors and others:
Mr. Deepak Jalan & Mr. Aloke Jalan: `5,225 Lacs; Linc Writing Aids Pvt. Ltd. `3,775 Lacs.

(` in Lacs)
2,733.68
As on
31.03.2012
147.10
31.03.2012
324.75
As on
776.37
198.70
132.37
1,154.39
25.97
25.97
-
-
Notes to Accounts
NET CARRYING AMOUNT
NET CARRYING AMOUNT

(` in Lacs)
2,906.55
As on
31.03.2013
131.80
322.14
818.78
245.82
As on
31.03.2013
161.45
1,226.56
19.64
19.64
25.97
2,733.68
Note 12 LONG-TERM LOANS AND ADVANCES
(Unsecured, considered good)
Capital advances 95.49 54.29
Security deposits 68.48 63.93
Other loans & advances
3,096.71
Upto
31.03.2013
-
51.99
630.51
94.78
Upto
31.03.2013
35.28
2,284.15
65.74
65.74
55.79
2,697.50
- Advance wealth tax 1.63 0.97
- Advance income tax 1,067.89 687.06
Less: Provision for taxation 1,000.18 67.71 544.18 142.88
- Prepaid expenses 1.05 0.47
234.36 262.54
37.71
Disposal/
deduction
during the year
-
-
20.12
0.12
9.74
7.74
Disposal/
deduction
during the year
9.66
-
-
-
Non Current Current
AMORTISATION
DEPRECIATION
LOANS AND ADVANCES 31st March, 31st March 31st March, 31st March
2013 2012 2013 2012
For the year
436.93
-
11.22
118.67
18.75
For the year

16.55
271.73
417.20
9.95
9.95
13.01
Capital Advances (Unsecured, Considered Good) 95.49 54.29 - -
Security Deposits (Unsecured, Considered Good) 68.48 63.93 20.65 35.95
Total (A) 163.97 118.23 20.65 35.95
Advances recoverable in cash or kind
Unsecured, Considered Good - - 205.78 206.67
2,697.50
Upto
01.04.2012
-
40.77
531.95
76.15
28.47
2,020.16
Upto
01.04.2012
2,289.96
55.79
55.79
42.78
Total (B) - - 205.78 206.67
Other Loans & Advances (Unsecured, Considered Good)
Prepaid Expenses 1.05 0.47 12.99 49.97
Export Benefit Receivable 14.64 6.83 206.81 143.29
Total (C) 15.69 7.30 219.80 193.26
Total as on
31.03.2013
131.80
374.13
1,449.29
340.60
196.73
3,510.71
6,003.26
5,431.18
Total as on
31.03.2013
85.38
85.38
81.76
Total (A+B+C) 179.66 125.53 446.23 435.88
* Allowance for Bad & Doubtful Loans & Advances shall be disclosed under the relevant heads.
* Loans & Advances due by Directors/ Other Officers/ Firms in which Directors are partners/ Private Companies
in which Directors are Members to be separately disclosed.
Additions Sale / disposal
01.04.2012 during the year during the year
15.30
-
34.09
0.52
34.56
16.22
100.69
-
23.68
Additions Sale / disposal

01.04.2012 during the year during the year
-
-
GROSS BLOCK
GROSS BLOCK
Note 13 OTHER NON-CURRENT ASSETS

-
8.62
175.06
66.26
70.45
352.38
672.77
591.50
3.62
3.62
5.93
Fixed deposits with banks * - 10.31

(Non current portion with original maturity period
of more than 12 months)
Fixed deposits with statutory authorities 0.45 0.45
Cost as on
147.10
365.51
1,308.32
274.86
160.84
3,174.55
5,431.18
4,863.36
Cost as on
81.76
81.76
75.83
(Non current portion with original maturity period

of more than 12 months)
Notes to Accounts
Export benefit receivable 14.64 6.83

Interest accrued but not due 0.25 1.26
15.34 18.85
11 FIXED ASSETS
Intangible Assets
Furniture & Fixtures
Computer Software
Plant & Equipment
Tangible Assets
Other Equipment
Freehold Land
Previous Year
Previous Year
Particulars
Particulars
Buildings
TOTAL
Vehicle
TOTAL
Note

Particulars As at 31st March, 2013 As at 31st March 2012 Particulars As at 31st March, 2013 As at 31st March 2012
Note 14 INVENTORIES * Note 17 SHORT-TERM LOANS AND ADVANCES

(At lower of cost and net realisable value) (Unsecured, considered good).
Raw materials 3,987.95 3,197.86 Security deposits 20.65 35.95
Goods in transit - 3,987.95 2.94 3,200.80 Other loans and advances
Work-in-progress 59.29 90.98 - Advances to suppliers and others 444.00 332.54
Finished goods 1,127.68 794.10 - Advance income tax - -
Goods in transit 0.32 1,128.00 - 794.10 Less: Provision for taxation - - - -
Stock-in-trade 1,431.98 2,215.82 - Prepaid expenses 12.99 49.97
* Includes materials lying with other parties 477.64 418.46
6,607.22 6,301.70
Note 18 OTHER CURRENT ASSETS

Note 15 TRADE RECEIVABLES Claims receivable - 0.09
(Unsecured, considered good) Taxes and duties refundable 33.72 34.74
Trade receivables outstanding for a period 93.12 99.07 33.72 34.83
exceeding six months from due date
Others 4,336.20 3,228.23
4,429.32 3,327.30
Particulars Year ended 31st March, 2013 Year ended 31st March, 2012
Note 19 REVENUE FROM OPERATIONS

Note 16 CASH AND BANK BALANCES
Sale of goods (Gross)
Cash and cash equivalents Pens 22,573.92 19,828.81
Balance with banks Refills 1,757.55 2,612.49
In current accounts 3.49 2.77 Others 5,820.88 4,726.73
Cash on hand 15.18 18.67 8.20 10.97 30,152.35 27,168.03
Other bank balances Less: Excise duty 178.46 67.31
Earmarked balances Net sales of goods 29,973.89 27,100.72
- Unpaid dividend accounts 11.09 11.60 Other operating revenues
29.76 22.57 - Scrap sales 2.25 12.44
- Export Incentive 525.30 385.17
- Commission 24.26 551.81 6.56 404.17
Non Current Current Revenue from operations (Net) 30,525.70 27,504.89
2013 2012 2013 2012
Cash & cash equivalents
Balance with banks Note 20 OTHER INCOMES
- On current accounts - - 3.49 2.77 Interest income (Gross)
- On unpaid dividend accounts - - 11.09 11.60 - Fixed deposits with banks 2.74 0.87
Cash in hand - - 15.18 8.20 - Income tax refund - 0.02
- - 29.76 22.57 - Others 0.13 0.18
Other Bank Balances Other non operating income
- Deposits with original maturity for more than 0.45 10.76 - - Insurance claim 2.04 1.71
12 months Net gain/ (loss) on sale of Fixed Assets 27.36 -
0.45 10.76 - - Miscellaneous Income 5.69 11.88
Amount disclosed under non-current assets (0.45) (10.76) - - 37.96 14.66
(note no. 16)
- - 29.76 22.57

Particulars Year ended 31st March, 2013 Year ended 31st March, 2012 Particulars Year ended 31st March, 2013 Year ended 31st March, 2012
Note 21 COST OF MATERIALS CONSUMED Note 26 OTHER EXPENSES

Plastic powder 3,656.62 2,067.89 Consumption of stores and spares 74.34 52.65
Ink 831.27 829.96 Power and fuel 238.10 163.54
Tips 1,311.36 1,251.49 Processing charges 1,749.10 807.20
Others 5,371.46 3,182.69 Rent 228.46 212.61
11,170.71 7,332.03 Repairs
Building 14.95 0.52
Machinery 12.31 9.85
Others 24.45 16.24
Note 22 PURCHASE OF STOCK IN TRADE
Insurance 46.56 43.17
Pens 7,242.50 8,578.51
Rates and taxes 16.64 12.61
Refills 221.25 553.00
Payment to auditor
Others 2,489.20 2,574.20
- For statutory audit 2.92 2.87
9,952.95 11,705.71
- For tax audit 0.56 0.55
- For other services (limited review, certification etc) 2.80 6.28 2.77 6.19
Director sitting fees 1.80 1.70
Note 23 (INCREASE)/DECREASE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE Travelling & conveyance 290.53 301.31
Finished goods Postage,telegram & telephone 72.20 69.92
Opening stock 794.10 923.07 Freight & transportation 447.31 413.42
Less: Closing stock 1,128.00 (333.90) 794.10 128.97 Advertisement expenses 481.03 1,280.35
Work in progress Sales promotion expenses 274.02 267.34
Opening stock 90.98 47.68 Incentives on sales 266.48 207.21
Less: Closing stock 59.28 31.70 90.98 (43.30) Commission on Sales 39.46 48.22
Stock in trade Discount allowed 627.44 616.67
Opening stock 2,215.83 2,647.19 Rebate, claim & other expenses 389.58 475.85
Less: Closing stock 1,431.98 783.85 2,215.83 431.36 Bad debts 12.55 -
Add/(Less): Excise duty and cess on stock* 4.70 4.70 (15.40) (15.40) Loss on sale of fixed assets - 6.77
476.95 532.43 Net loss on foreign currency transactions and
translations 314.08 15.92
* The amount of excise duty and cess on stock represents difference in excise duty and cess on opening and
Miscellaneous expenses 376.24 365.18
closing stock.
6,003.91 5,394.44
Note 24 EMPLOYEE BENEFITS EXPENSE

Salaries and wages 1,413.36 1,367.94 Particulars As at 31st March, 2013 As at 31st March 2012
Contribution to provident and other funds 88.41 79.66
Staff welfare expenses 58.39 79.87 Note 27.1 CONTINGENT LIABILITIES AND
1,560.16 1,527.47 COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
a) Contingent Liabilities:
Claims against the Company not
acknowledged as debts:
Note 25 FINANCE COSTS
Income Tax demands under appeal 524.57 524.57
Interest expense
Income Tax Paid against demands 150.00 115.00
- On long term borrowings 1.66 1.56
- On short term borrowings 217.24 345.47 The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available
information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal
- On others 17.26 236.16 17.47 364.50
processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be
Other borrowing costs 12.15 13.54
estimated accurately.
248.31 378.04
In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the
grounds that there are fair chances of successful outcome of appeals.
The Company does not expect any reimbursements in respect of the above contingent liabilities.

(` in Lacs)
Particulars As at 31st March, 2013 As at 31st March 2012 Note 27.4 EARNINGS PER SHARE:
Note 27.1 CONTINGENT LIABILITIES AND 2012-13 2011-12
COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) The numerator and denominator used to calculate Basic/ Diluted Earnings Per
b) Commitments: Share
i) Estimated amount of Contracts remaining to 256.84 127.73 a) Amount used as the numerator Profit after tax (`in lacs) 541.42 169.62
be executed on Capital Account and not b) Basic / Diluted weighted average number of 138.60 127.86
provided for Equity Shares used as the denominator (Nos. in lacs)
ii) Advance paid against above 95.49 53.72
c) Nominal value of Equity Shares (`) 10 10
d) Basic / Diluted Earnings Per Share (a/b) (`) 3.91 1.33
Note 27.2
Note 27.5 RELATED PARTY TRANSACTIONS:
The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and Medium Enterprises
Development Act, 2006” has been determined to the extent such parties have been identified on the basis of Related party disclosure as per Accounting Standard 18 for the year ended 31st March 2013 are given below:
information available with the Company.
I) Names and description of relationship of related parties as on 31st March 2013:
The disclosures relating to Micro and Small Enterprises are as under:
Sl. No. Description 2012-13 2011-12 Related Party Relationship
I) The principal amount remaining unpaid to suppliers as at the end of 220.21 154.04 Associates:
accounting year * Linc Retail Ltd. Associate
ii) The interest due thereon remaining unpaid to suppliers as at the end Nil Nil
Key Managerial Personnel (KMP) :
of accounting year
Deepak Jalan Managing Director
iii) The amount of interest paid in terms of Section 16, along with the Nil Nil
Aloke Jalan Whole Time Director
amount of payment made to the suppliers beyond the appointed day
during the year
Enterprises in which KMP and their relatives have substantial interest :
iv) The amount of interest due and payable for the period of delay in Nil Nil Linc Writing Aids Pvt. Ltd. Substantial interest of the relatives of M.D. and W.T.D.
making payment (which have been paid but beyond the appointed
day during the year) but without adding the interest specified under Relatives of KMP :
this Act Mr. Deepak Jalan Deepak Jalan (HUF) Mr. Deepak Jalan is Karta of HUF
v) The amount of interest accrued during the year and remaining unpaid Nil Nil Mr. S.M. Jalan (Father)
at the end of the accounting year *
Mrs. Bimla Devi Jalan (Mother)
vi) The amount of further interest remaining due and payable even in the Nil Nil
Ms. Divya Jalan (Daughter)
succeeding years, until such date when the interest dues as above are
actually paid to the Micro and Small Enterprises Mr Prakash Jalan (Brother)
* Included in the line item "Total outstanding dues of Micro and Small Enterprises" under Note No. 8 Smt. Bindu Jalan (Brother’s Wife)
Mr. Aloke Jalan Aloke Jalan (HUF) Mr. Aloke Jalan is Karta of HUF
Mrs. Shobha Jalan (Wife)
Note 27.3 SEGMENT REPORTING
Mr. S.M. Jalan (Father)
The business of the company falls under a single segment i.e. “Writing Instruments and Stationeries” therefore the
Mrs. Bimla Devi Jalan (Mother)
disclosure requirements as per Accounting Standard 17 “Segment Reporting” are not applicable to the Company.
Mr Prakash Jalan (Brother)
Smt. Bindu Jalan (Brother’s Wife)

Note 27.5 RELATED PARTY TRANSACTIONS: (contd.) Note 27.5 RELATED PARTY TRANSACTIONS: (contd.)
II ) Details of transactions with related parties. (` in Lacs) II) Details of transactions with related parties. (contd.) (` in Lacs)
Description Associates Key Enterprises Relatives Total Description Associates Key Enterprises Relatives Total
(A) Managerial in which KMP of (A) Managerial in which KMP of
Personnel and their KMP Personnel and their KMP
(KMP) relatives have (R) (KMP) relatives have (R)
substantial substantial
interest interest
Purchase of Goods Balance Outstanding
Linc Writing Aids Pvt. Ltd. - - 2,102.30 - 2,102.30 a) Accounts Receivable
(-) (-) (1,025.49) (-) (1,025.49) Linc Retail Ltd. 289.30 - - - 289.30
Linc Retail Ltd. 2.97 - - - 2.97 (156.96) (-) (-) (-) (156.96)
(0.87) (-) (-) (-) (0.87) Linc Writing Aids Pvt. Ltd. - - 869.74 - 869.74
Sale of Goods (-) (-) (287.57) (-) (287.57)
Linc Retail Ltd. 125.89 - - - 125.89 b) Amount outstanding against Guarantees given for Loans obtained by the Company
(-) (-) (-) (-) (-) Mr. Deepak Jalan - 3,111.30 - - 3,111.30
Linc Writing Aids Pvt. Ltd. - - 2,589.40 - 2,589.40 (-) (4,252.91) (-) (-) (4,252.91)
(-) (-) (1,270.04) (-) (1,270.04) Mr. Aloke Jalan - 3,111.30 - - 3,111.30
Receiving of Services (Remuneration) (-) (4,252.91) (-) (-) (4,252.91)
Mr. Deepak Jalan - 53.79 - - 53.79 Linc Writing Aids Pvt. Ltd. - - 3,111.30 - 3,111.30
(-) (50.55) (-) (-) (50.55) (-) (-) (4,252.91) (-) (4,252.91)
Mr. Aloke Jalan - 47.19 - - 47.19
III) No amount has been written back / written off during the year in respect of due to / from related parties.
(-) (40.47) (-) (-) (40.47)
Receiving of Services (Others) IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of
dues from such related parties is required.
Linc Writing Aids Pvt. Ltd. - - 12.72 - 12.72
(-) (-) (12.72) (-) (12.72) V) The transactions with related parties have been entered at an amount, which are not materially different
Mr. Prakash Jalan - - - 0.66 0.66 from that on normal commercial terms.
(-) (-) (-) (0.72) (0.72) VI) Figure in brackets pertains to previous year.
Ms. Divya jalan - - - 4.11 4.11
(-) (-) (-) (3.15) (3.15)
Note 27.6 EMPLOYEE BENEFITS :
M/s. Deepak Jalan (HUF) - - - 4.14 4.14
(-) (-) (-) (4.14) (4.14) As per Accounting Standard - 15, the disclosure of Employee Benefits as defined in the Accounting Standard are
Mrs. Shobha Jalan - - - 12.45 12.45 as follows:
(-) (-) (-) (13.10) (13.10) a) Defined Contribution Plan :
Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as
M/s. Aloke Jalan (HUF) - - - 13.64 13.64
defined contribution plan and the contributions are made in accordance with the relevant statute and are
(-) (-) (-) (12.18) (12.18)
recognized as an expense when employees have rendered service entitling them to the contributions. The
Dividend Paid to Shareholders
contribution to defined contribution plan, recognized as expense for the year is as under:
Mr. Deepak Jalan - 7.79 - - 7.79
(` in Lacs)
(-) (14.01) (-) (-) (14.01)
Mr. Aloke Jalan - 7.87 - - 7.87 Defined Contribution Plan 2012-13 2011-12
(-) (14.17) (-) (-) (14.17) Employers’ Contribution to Provident Fund 71.00 67.86
Guarantees (Given for the Loans obtained by the Company) Employers’ Contribution to Employee State Insurance Scheme 25.94 26.37
Mr. Deepak Jalan - 5,225.00 - - 5,225.00 Total 96.94 94.23
(-) (4,781.00) (-) (-) (4,781.00)
b) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are
Mr. Aloke Jalan - 5,225.00 - - 5,225.00
considered as defined benefit obligation. The present value of obligation is determined based on actuarial
(-) (4,781.00) (-) (-) (4,781.00)
valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits
Linc Writing Aids Pvt. Ltd. - - 3,775.00 - 3,775.00 recognized in the Balance Sheet represents the present value of the obligation as adjusted for unrecognized
(-) (-) (4,781.00) (-) (4,781.00) past service cost, and as reduced by the fair value of plan assets.

Note 27.6 EMPLOYEE BENEFITS : (contd.) Note 27.6 EMPLOYEE BENEFITS : (contd.)
Any asset resulting from this calculation is limited to the discounted value of any economic benefits available VI. Basis used to determine the Expected Rate of Return on Plan Assets:
in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of
in the Statement of Profit and Loss for the year ended 31st March, 2013 in respect of Employees Benefit assets, investment strategy and market scenario. In order to protect the capital and optimize returns within
Schemes based on actuarial reports as on 31st March, 2013 is as follows: acceptable risk parameters, the plan assets are well diversified.
(` in Lacs)
VII. Basis of estimates of rate of escalation in salary
2012 – 13 2011-12 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
Gratuity Leave Gratuity Leave seniority, promotion and other relevant factors including supply and demand in the employment market. The
(Funded) Encashment (Funded) Encashment above information is certified by LIC.
(Unfunded) (Unfunded)
I. Components of Employer Expense:
1. Current Service Cost 11.39 15.33 9.49 13.78 VIII. Disclosure related to previous years : (` in Lacs)
2. Past Service Cost -- -- -- -- As at 31st March, Leave Encashment Gratuity
3. Interest Cost 5.66 5.11 4.27 4.04 (Unfunded) (Funded)
4. Expected Return on Plan Asset (8.24) -- (6.66) -- 2011 2010 2009 2011 2010 2009
5. Actuarial (gain)/loss recognized in the year 9.49 20.80 4.70 16.06 1. Present value of Defined Benefit (60.64) (42.42) (31.61) (52.46) (37.44) (29.37)
6. Expense Recognized in the Statement of Profit 18.30 41.24 11.80 33.88 Obligation
and Loss 2. Fair Value on Plan Assets - - - 67.41 53.41 47.63
II. Change in Present Value of Defined Benefit 3. Funded Status [Surplus/(deficit)] (60.64) (42.42) (31.61) 14.95 15.97 18.26
Obligation:
1. Present Value of Defined Benefit Obligation at 67.01 69.43 52.46 60.64
the Beginning of the year IX The history of experience adjustments for the funded post retirement plan of Gratuity are as follows:
2. Interest Cost 5.66 5.11 4.27 4.04 As at 31st March, 2013 2012 2011 2010 2009
3. Current Service Cost 11.39 15.33 9.49 13.78 1. Defined Benefit Obligation at the end of the period (87.43) (67.01) (52.46) (37.44) (29.37)
4. Plan Amendments Cost/(Credit) -- -- -- -- 2. Plan Assets at end of the period 103.40 84.15 67.41 53.41 47.63
5. Actuarial Gain/(Losses) 8.79 20.80 4.08 16.06 3. Funded Status 15.97 17.14 14.95 15.97 18.26
6. Benefit Payments (5.42) (22.83) (3.29) (25.09) 4. Experience Gain/(Loss) adjustment on plan liabilities (1.17) (8.44) (9.34) 0.30 1.41
7. Present Value of Obligation at the End of the year 87.43 87.84 67.01 69.43 5. Experience Gain/(Loss) adjustment on plan assets (0.70) (0.62) (2.39) (1.09) (0.33)
III. Change in Fair Value of Plan Assets during 6. Actuarial Gain/(Loss) due to change on assumptions (7.62) 4.36 (0.81) (2.11) (1.37)
the year ended 31st March, 2013:
1. Plan Assets at the Beginning of the year 84.15 -- 67.41 --
2. Expected Return on Plan Assets 8.24 -- 6.66 -- X The history of experience adjustments for the unfunded plan of Leave Benefit Scheme are as follows:
3. Actual Company Contribution 17.13 -- 13.99 25.09 As at 31st March, 2013 2012 2011 2010 2009
4. Actuarial Gain/(Losses) (0.70) -- (0.62) -- 1. Defined Benefit Obligation at the end of the period (87.84) (69.43) (60.64) (42.42) (31.61)
5. Benefit Payments (5.42) -- (3.29) (25.09) 2. Plan Assets at end of the period -- -- -- -- --
6. Plan Assets at the end of the year 103.40 -- 84.15 -- 3. Funded Status (87.84) (69.43) (60.64) (42.42) (31.61)
IV. Net Asset/(Liability) recognized in the 4. Experience Gain/(Loss) adjustment on plan liabilities (13.28) (20.57) (12.53) (6.14) (8.07)
Balance Sheet as at 31st March, 2013: 5. Experience Gain/(Loss) adjustment on plan assets -- -- -- -- --
1. Present value of Defined Benefit Obligation 87.43 87.84 67.01 69.43 6. Actuarial Gain/(Loss) due to change on assumptions (7.52) 4.51 (0.96) (2.79) (1.53)
2. Fair Value on Plan Assets 103.40 -- 84.15 --
3. Funded Status (Surplus/(deficit)) 15.97 (87.84) 17.14 (69.43)
4. Net Asset/(Liability) recognized in Balance 15.97 (87.84) 17.14 (69.43) XI Other Disclosures
Sheet 1. The Gratuity and Provident Fund Expenses have been recognized under “Contribution to provident and other
V Actuarial Assumptions funds” and Leave Encashment under “Salaries & wages” under Note no. 24.
1 Discount Rate (per annum) 8.20 % 8.20% 8.80 % 8.80%
2. Expected Return on Plan Assets (per annum) 9.15 % -- 9.15 % --
3. Salary Increases 5.50 % 5.50% 5.50 % 5.50%
4. Retirement/Superannuation Age 58 58 58 58
5. Mortality Indian Assured Lives Mortality LIC
(2006 - 08) (1994 - 96)

(` in Lacs)
Note 27.7 INTANGIBLE ASSETS Note 27.12 VALUE OF IMPORTS ON C.I.F. BASIS
The unamortised amount of Computer Software (Acquired) `19.62 lacs is to be amortised equally in the coming
2012-13 2011-12
years as given hereunder:
Raw Materials,Components 1,142.71 524.52
Particulars Amount Years Trading Goods 1,925.34 2,384.84
(` in Lacs)
Capital Goods 249.39 374.11
Computer Software 3.57 Four
Spares 0.94 6.13
Computer Software 4.74 Three
Computer Software 9.11 Two
Computer Software 2.20 One
Note 27.13 EXPENDITURE IN FOREIGN CURRENCY
I) Bank Interest & Commission 12.21 9.96
II) Travelling 28.92 20.67
Note 27.8 DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT:
III) Exhibition Expenses 32.96 22.83
There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the
IV) Commission on Exports 5.26 7.98
Stock Exchanges where the Equity Shares of the Company are listed.
V) Product Designing, Testing Charges & Others 13.07 14.68
Note 27.9
The previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary as
Note 27.14 EARNINGS IN FOREIGN CURRENCY
required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral
part of the current year financial statements and are to be read in relation to the amounts and other disclosures Exports on FOB Basis 7,595.30 6,643.73
relating to the current year.
Note 27.10 CONSUMPTION OF MATERIALS Note 27.15
Figures in brackets represents figures for the previous years.

Particulars Amount Percentage
(` in Lacs)
Imported 853.91 7.64%
(544.04) (7.42%)
Indigeneous 10,316.80 92.36% As per our report of even date attached.
(6,787.99) (92.58%)
Total 11,170.71 100.00%
For G. P. Agrawal & Co. For and on behalf of the Board
Total (Previous Year) (7,332.03) (100.00%) Chartered Accountants
Deepak Jalan Aloke Jalan
Managing Director Whole Time Director
Note 27.11 CONSUMPTION OF SPARE PARTS * (CA. Ajay Agrawal)
Partner
Particulars Amount Percentage Membership No.17643
(` in Lacs)
Imported 1.18 1.59% Kolkata - 700 001 G.M.- Finance &
(7.38) (14.02%)
Indigeneous 73.16 98.41%
(45.27) (85.98%)
Total 74.34 100.00%
Total (Previous Year) (52.65) (100.00%)
* Spare parts includes store items also.

Cash Flow Statement for the year ended 31st March, 2013 Cash Flow Statement for the year ended 31st March, 2013
Particulars Year ended Year ended Particulars Year ended Year ended
31st March, 2013 31st March, 2012 31st March, 2013 31st March, 2012
A. CASH FLOW FROM OPERATING ACTIVITIES : C. CASH FLOW FROM FINANCING ACTIVITIES :
Net profit before tax 703.79 219.22 Issue of Share Capital and Share Premium thereon 2,000.00
Adjustments for Proceeds /(Repayment) of Long term borrowings (80.25) (94.90)
Depreciation 446.88 430.21 Proceeds /(Repayment) of Short term borrowings (Net) (1,056.71) 238.28
(Profit) / Loss on sale/ Discard of Fixed Assets (27.36) 6.77 Interest Paid (253.45) (384.46)
Interest Income (2.88) (1.07) Other borrowing cost 12.15 13.54
Unrealised loss/(gain) on foreign exchange 6.20 (45.97) Dividend Paid (127.86) (230.15)
fluctuation (Net) Dividend Tax Paid (20.74) 473.14 (38.22) (495.91)
Finance cost 248.31 671.15 378.04 767.98 Net Cash Generated / Used ~ Financing Activities 473.14 (495.91)
Operating profit before working capital changes 1,374.94 987.20 Net increase in cash and cash equivalents (A+B+C) 7.70 (0.41)
(Increase) / Decrease in Trade receivables (1,106.97) (1,107.84) Cash and cash equivalents -Opening balance 10.97 11.38
(Increase) / Decrease in Inventories (305.52) 366.77 18.67 10.97
(Increase) / Decrease in Long Term Loans & Advances (46.33) 182.11 Cash and cash equivalents - Closing balance 18.67 10.97
(Increase) / Decrease in Other Non Current Assets (7.81) (0.29) (Refer note no. 16)
(Increase) / Decrease in Short Term Loans & (59.18) 59.15
Advances Notes :
1) The above cash flow statement has been prepared under the "Indirect Method" as set out in the Accounting
(Increase) / Decrease in Other Current Assets 1.11 4.77
Standard - 3 on Cash Flow Statement as specified in Companies (Accounting Standard) Rules 2006.
Increase / (Decrease) in Long Term Provisions 17.70 7.93
2) Figures in bracket represent cash outflow.
Increase / (Decrease) in Trade Payables 92.69 644.40
3) Additions to Fixed Assets include movement of Capital Work-in-Progress during the year.
Increase / (Decrease) in Other Current Liabilities 193.64 146.09
Increase / (Decrease) in Short Term Provisions 0.71 (1,219.96) 0.86 303.95 4) Cash and cash equivalent at the end of the year consist of : (` in Lacs)
Cash generated from operations 154.97 1,291.15 Particulars As at As at
Less: Direct taxes paid 75.27 154.60 31st March, 2013 31st March, 2012
a) Cash on hand 15.18 8.20
Net Cash Generated / Used ~ Operating Activities 79.70 1,136.55
b) Balances with Scheduled Banks in Current Accounts 3.49 2.77
B. CASH FLOW FROM INVESTING ACTIVITIES :
18.67 10.97
Addition to Fixed Assets (Including Intangibles) (647.24) (648.52)
Sale of fixed assets 87.89 7.25
This is the Cash Flow Statement referred to in our report of even date.
Fixed Deposit with Banks 10.31 (0.20)
Interest Received 3.90 0.42
(545.14) (641.05) For G. P. Agrawal & Co. For and on behalf of the Board
Chartered Accountants
Net Cash Generated / Used ~ Investing Activities (545.14) (641.05) Firm Registration No. 302082E
Deepak Jalan Aloke Jalan
Managing Director Whole Time Director
(CA. Ajay Agrawal)
Partner
Membership No.17643


Five Year Financial Highlights Performance in US$
(` in Lacs) (` in Millions)
Year 2012-13 2011-12 2010-11 2009-10 2008-09 Year 2012-13 2011-12 2010-11
Source of Funds Source of Funds
Share Capital 1478.60 1278.60 1278.60 1278.60 1278.60 Share Capital 2.89 2.50 2.86
Reserves & Surplus 5579.06 3479.26 3458.25 2886.64 2316.39 Reserves & Surplus 10.91 6.81 7.74
Networth 7057.66 4757.86 4736.85 4165.24 3594.99 Networth 13.81 9.31 10.60
Borrowings 3372.13 4505.75 4354.98 2284.02 2979.02 Borrowings 6.60 8.81 9.75
Funds Employed 10429.79 9263.61 9091.83 6449.26 6574.01 Funds Employed 20.40 18.12 20.35
Operating Results Operating Results
Domestic Sales 22272.20 20377.28 19264.24 16987.70 14814.67 Domestic Sales 43.57 39.86 43.18
Exports 7701.69 6723.44 5550.21 5218.16 3943.37 Exports 15.07 13.15 12.42
Total Sales 29973.89 27100.72 24814.45 22205.86 18758.04 Total Sales 58.63 53.01 55.60
PBIDT 1398.98 1027.47 1651.51 1631.99 1279.40 PBIDT 2.74 2.01 3.66
Finance Cost 248.31 378.04 208.06 169.75 285.91 Interest 0.49 0.74 0.43
Depreciation 446.88 430.21 361.95 307.37 309.29 Depreciation 0.87 0.84 0.81
Profit before tax 703.79 219.22 1081.50 1154.87 684.20 Profit before tax 1.38 0.43 2.42
Profit after tax 541.43 169.62 839.97 839.51 503.82 Profit after tax 1.06 0.33 1.88
EPS 3.91 1.33 6.57 6.57 3.94 Conversion Rate (INR per US$) 54.47 51.12 44.69
Cash EPS 6.68 4.69 9.40 8.97 6.36
Dividend % 15 10 18 18 15
Networth per Share (`) 47.73 37.21 37.05 32.58 28.12

Corporate Information
Board of Directors
Dr. Ranjan Das Independent, Non-executive
Shri Naresh Pachisia Independent, Non-executive
Shri Kedar Nath Ranasaria Independent, Non-executive
Shri Aloke Jalan Whole Time Director
Shri Deepak Jalan Managing Director
COMPANY SECRETARY BRANCH OFFICES

N. K. Dujari MUMBAI - 403-404 Tanishka Bldg.
Off Western Express Highway
REGISTERED OFFICE Kandivali (East), Mumbai - 400 101
Satyam Towers, Phone: (022) 6692 4155 / 4255
3, Alipore Road, Kolkata - 700 027 Fax: (022) 6694 2963
Phone: (033) 30412100, 2479 0248 e-mail: [email protected]
Fax: (033) 2479 0253
e-mail: [email protected] DELHI - B-34/10, G.T.K.Road
website: www.lincpen.com Industrial Area, New Delhi - 110 033
e-mail: [email protected]
WORKS
Linc Estate NOIDA - D-42, Sector - 11,
Usthi Road, Serakole, G.B.Nagar, Noida - 201 301, U.P.
24 Pgns. (S), Pin - 743 513
West Bengal PATNA - Shanti Niketan compound,
Phone: (033) 2420 4275/76 Fraser road, Near Times of India
Fax: (033) 2420 4441 Patna - 800 001, Bihar
e-mail: [email protected]
RANCHI - Rahul Complex
Falta SEZ, Sector-II, Shed No.2 North Market Road, Upper Bazar
Falta, 24 Pgns(S), Pin - 743 504 Ranchi - 834 001, Jharkand
West Bengal
Phone: (03174) 222 925 INDORE - 45, Pandharinath Path,
Indore - 452 004, Madhya pradesh
AUDITORS
G. P. Agrawal & Co. BANKERS
Chartered Accountants State Bank of India
7A, Kiran Sankar Ray Road IDBI Bank Ltd.
Kolkata 700 001 HDFC Bank Ltd.

A PRODUCT • [email protected]
www.lincpen.com
Regd Office: Satyam Towers, 3, Alipore Road, Kolkata - 700 027
NOTICE
TO THE MEMBERS OF Linc Pen & Plastics Limited 3. Members are requested to notify change in their address, if any, along with Pincode
NOTICE is hereby given that the 19th Annual General Meeting of the Members of the Company will Number immediately to the Company’s Registrar and Share Transfer Agents–M/s.Maheswari
be held at “Shripati Singhania Hall”, Rotary Children’s Welfare Trust, 94/2, Chowringhee Road, Datamatics Pvt. Ltd, 6, Mangoe Lane, 2nd Floor, Kolkata-700001.
Kolkata – 700 020 on Wednesday, 18th September, 2013 at 3.30 P.M. to transact the following 4. Members who have not yet encashed their dividend warrant for the financial years 2005-06
business: to 2011-12 are requested to lodge their claim with the Company.
1. To receive, consider and adopt the audited Balance Sheet as at 31st March 2013 and Profit 5. Members / Proxies should bring the attendance slip duly filled in for attending the meeting.
& Loss Account for the year ended on that date together with the reports of the Auditors and Members are requested to bring their copy of Annual Report. Additional Copies of the Annual
Directors. Report will not be made available at the meeting.
2. To declare Dividend on Equity Shares for the year ended 31st March, 2013. 6. Members desiring any information or having any query on the Accounts are requested to write
3. To appoint a Director in place of Dr. Ranjan Das, who retires by rotation and being eligible to the Company 7 days before the meeting so that the information / answers may be readily
offers himself for reappointment. available at the meeting.
4. To appoint Auditors and to authorise the Board to fix their remuneration. 7. Explanatory Statement Pursuant to Section 173 (2) of the Companies Act, 1956 and Listing
M/s. G. P. Agrawal & Co., Chartered Accountants, Kolkata, (Registration No.302082E) Agreement.
Auditors of the Company retire at the conclusion of the ensuing Annual General Meeting of the Item No. 3 – Dr. Ranjan Das retire from the Board by rotation and being eligible offers himself
Company and have offered themselves for reappointment. for reappointment. He has been on Company’s Board as an Independent Director since July,
2004. Dr. Das’s age is 64 years. He is a professor on Strategic & International Management
By order of the Board at Indian Institute of Management, Calcutta. He is also acts as an advisor in strategic planning
and management with several corporates. Other company in which he holds Board Position is
Tayo Rolls Ltd. He is also member of Audit Committee and Shareholders Committee of Tayo
Registered Office Rolls Ltd. He does not hold any share in our Company.
3, Alipore Road N. K. DUJARI
Kolkata – 700 027 G. M. - Finance &
Dated: 13th August 2013 Company Secretary
By order of the Board
NOTES Registered Office

1. A member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend 3, Alipore Road N. K. DUJARI
and vote instead of himself and the proxy need not be a member of the Company. Proxies, in Kolkata – 700 027 G. M. - Finance &
order to be effective must be received by the Company at it’s Registered Office not less than Dated: 13th August 2013 Company Secretary
48 hours before the time for holding of the Annual General Meeting.
2. The Register of Members and Share Transfer Books of the Company remain closed from 11th
September, 2013 to 18th September, 2013 (both days inclusive) for the purpose of Annual
General Meeting and for determining eligibility for dividend for the year ended 31st March,
2013. The Dividend, if declared at this meeting will be payable to those members whose
names are in the Company’s Register of Member after giving effect to the valid transfers in
physical form lodged with the Company before 11th September, 2013. In respect of Shares
held in electronic form (dematerialised shares), the dividend will be payable to such beneficial
owners as per the list furnished by the Depositories as at the close of business on 10th
September, 2013. The Dividend warrants will be posted on or after 18th September, 2013.
Linc Pen & Plastics Limited Regd Office: Satyam Towers, 3, Alipore Road, Kolkata - 700 027
Regd Office: Satyam Towers, 3, Alipore Road
Kolkata - 700 027 ATTENDANCE SLIP
(To be handed over, duly filled in, at the entrance of the Meeting Hall)
PROXY FORM
Name & Address of the Member
I /We ___________________________________________________________________________ of
____________________________________________________________________ in the district of
__________________________ being a Member / Members of the above named Company, hereby
appoint ______________________________________________ of __________________________
_____________________________________ in the district of _________________________ or
failing him/her _____________________________________________ of _____________________
___________________________________ in the district of_________________________ as my/our
Proxy to vote for me/us on my/our behalf at the 19th ANNUAL GENERAL MEETING of the said
Company to be held on Wednesday, 18th September, 2013 at 3.30 p.m. and at any adjournment
thereof. Name of the attending Member/ Proxy* (in block letters): _________________________________
_________________________________________________________________________________
Affix
Revenue Member’s Folio/Client ID No:_________________________________________
Stamp
Signed this….........day of September, 2013 Member’s Signature No. of Shares held:________________________________________________
Folio/Client ID No:______________________ I hereby record my presence at the 19th Annual General Meeting of the Company on Wednesday,
18th September, 2013 at 3.30 p.m. at “Shripati Singhania Hall”, Rotary Children’s Welfare Trust,
94/2, Chowringhee Road, Kolkata – 700 020
Note: The proxy and the Power of Attorney (if any) under which it is signed or notarially certified
copy of that Power must be deposited at the Registered Office of the Company at Satyam Towers,
3, Alipore Road, Kolkata – 700 027 not later than 48 hours before the time for holding of the
Place: Kolkata Member’s / Proxy Signature**
Annual General Meeting.
* Please strike off whichever is not applicable
** To be signed at the time of handing over this slip.

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Linc Pen & Plastics Limited

Annual Report 2012-13

Operational reviews Statutory part Financial statements

is one of the top-three and its stakeholders

players in the Indian writing

02 Linc Pen & Plastics Ltd Annual Report 2012-13 03

Cash profit (` crore)

Launched products - Linc Tycoon, and

06 Linc Pen & Plastics Ltd Annual Report 2012-13 07

We are one of the leading exporters of

We enjoy an export presence in over

We have established a new

08 Linc Pen & Plastics Ltd Annual Report 2012-13 09

trumped the 7% growth of India’s organised

Q Were you happy with the performance of the

Q What were the factors that enabled the Company to counter

10 Linc Pen & Plastics Ltd Annual Report 2012-13 11

Q The Company performed credibly on the exports front. What were

12 Linc Pen & Plastics Ltd Annual Report 2012-13 13

3 QUALITY 6 CUSTOMER FOCUSED

14 Linc Pen & Plastics Ltd Annual Report 2012-13 15

STRATEGIC INVESTMENTS INTEGRATION

MANUFACTURING GEOGRAPHIC FOCUS

16 Linc Pen & Plastics Ltd Annual Report 2012-13 17

18 Linc Pen & Plastics Ltd Annual Report 2012-13 19

Rashtriya Uchhatar Shiksha Abhiyan Primary and secondary school

20 Linc Pen & Plastics Ltd Annual Report 2012-13 21

4 Quality We normally recruit via newspaper

consultants, campus recruitments and Group mediclaim policy with a `1

22 Linc Pen & Plastics Ltd Annual Report 2012-13 23

24 Linc Pen & Plastics Ltd Annual Report 2012-13 25

26 Linc Pen & Plastics Ltd Annual Report 2012-13 27

28 Linc Pen & Plastics Ltd Annual Report 2012-13 29

30 Linc Pen & Plastics Ltd Annual Report 2012-13 31

32 Linc Pen & Plastics Ltd Annual Report 2012-13 33

vi) The Company had no subsidiary as vi) Management Discussion and

34 Linc Pen & Plastics Ltd Annual Report 2012-13 35

July, 2012 51.00 42.00 5001 to 10000 42 0.75 3,09,560 2.09

September, 2012 54.10 42.50 Total 5,641 100.00 1,47,85,960 100.00

October, 2012 51.90 45.00

36 Linc Pen & Plastics Ltd Annual Report 2012-13 37

N. K. Dujari Deepak Jalan

38 Linc Pen & Plastics Ltd Annual Report 2012-13 39

40 Linc Pen & Plastics Ltd Annual Report 2012-13 41

The Income Tax Income Tax 5.57 A.Y. 2007-08 ITAT

The Income Tax Income Tax 66.66 A.Y. 2008-09 ITAT

42 Linc Pen & Plastics Ltd Annual Report 2012-13 43

44 Linc Pen & Plastics Ltd Annual Report 2012-13 45

1.1 Basis of accounting: reference to the date of addition/ disposal.

46 Linc Pen & Plastics Ltd Annual Report 2012-13 47

48 Linc Pen & Plastics Ltd Annual Report 2012-13 49

50 Linc Pen & Plastics Ltd Annual Report 2012-13 51

Note 5 DEFERRED TAX LIABILITIES (NET) Note 8 TRADE PAYABLES

Note 9 OTHER CURRENT LIABILITIES

Non Current Current Note 10 SHORT-TERM PROVISIONS

52 Linc Pen & Plastics Ltd Annual Report 2012-13 53

NET CARRYING AMOUNT

NET CARRYING AMOUNT

For the year

appoint ____________________ of

_____________ in the district of _ or

failing him/her _________________________ of _

___________ in the district of_ as my/our