డైరెక్టర్ల నివేదిక IAG Glass Company Ltd.

Mar 31, 2010

The Directors are pleased to present their 53rd Annual Report together with the Audited Accounts for the year ended 31st March, 2010.

FINANCIAL HIGHLIGHTS :

Rs. in lakhs * Rs. in lakhs * Current Year Previous Year

Income [Sales] 8,125 1,380

Profit/(Loss) before depreciation and write back of liabilities and provisions 530 514

Depreciation (324) (226)

Liabilities and Provisions no longer required written back 16 1,004

Prior period adjustments (35) (64)

Waiver of unsecured loan -- 1,266

Profit/(Loss) before taxation 187 2,494

Deferred Tax Liabilities (Net) 76 1,651

Fringe Benefit Tax -- 6

Balance brought forward from previous year -- --

Transfer from Revaluation Reserve -- --

Transfer to Revaluation Reserve 112 837

Profit/(Loss) carried to Reserve and Surplus/ -- --

Balance Sheet -- --

* Note : Figures rounded off to nearest rupees of lakhs.

OPERATIONS AND PROSPECTS

During the year under review, commercial production from both the furnaces continued till November 2009 and thereafter production from both the furnaces of the company were suspended due to paucity of funds. The company has restarted commercial production from Furnace 2 with effect from May 2010. The company is making all efforts for arranging funds for restarting production from Furnace 1.

DIVIDEND

In view of past accumulated losses and inadequate distributable surplus in the year under review the Directors regret that they are unable to recommend any dividend.

DIRECTORS

Mr. P.K. Chatterjee, Managing Director resigned with effect from 27th Ferbruary 2010.

The Board places on record the wise counsel rendered by him during his tenure in the Company.

Mr. Rakesh Dosi and Mr.S.K. Biswas Directors of your company retire from the Board by rotation and are eligible for re- appointment.

LISTING

The Equity shares of your company are listed in Bombay Stock Exchange Ltd. and Calcutta Stock Exchange Ltd. The company had fulfilled all the listing compliances as required by the Bombay Stock Exchange and trading in equity shares in BSE started with effect from October 2009.

CORPORATE GOVERNANCE

A separate report on corporate Governance along with General Shareholders Information as prescribed under the Listing Agreement, is annexed as a part of this report along with the Auditors Certificate thereon.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act 1956, the Directors hereby confirm that:

1. In preparation of Annual Accounts for the financial year ended 31st March, 2010, applicable accounting standards have been followed along with proper explanation relating to material departures.

2. Appropriate Accounting Policies have been selected and applied consistently and judgements and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2010 and of the profits for the period from 1st April 2009 to 31st March 2010.

3. Proper and sufficient care has been taken for the maintainence of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

4. The Annual Accounts for the financial year ended 31st March, 2010 have been prepared on a going concern basis.

COMMENT ON AUDITORS REMARKS

As regards Auditors comments in their Reports on financial results for the year Companys submissions have been given as under :

Regarding Comment No. 4(b)

The company has converted unsecured loan of value 6.5 crores into preference shares and the remaining amount of unsecured loan of Rs. 18 crores will be converted within a short period of time.

Regarding Comment No. 4(c)

The Gratuity Trust Fund have not yet encashed the cheque.

Regarding Comment No. 4(d)

The interest is provided on the basis of payment of E.M.I. Since the instalment of E.M.I is due as on March 2010 interest provision could not be made.

Regarding Comment No. 4(e)

The company has an option to provide for the expenditure within five years and the same will be accounted for in the subsequent years.

Regarding Comment No. 4(f)

The process of Reconciliation is being done and the same will be complied within a short time.

Regarding Comment No. ix(a)

The statutory dues could not be deposited due to paucity of funds since the companys operations were closed for five months.

The same will be deposited during the current financial year.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO

Detail of energy conservation and development activities undertaken by the Company along with the information in accordance with the provision of Section 217(1) (e) of the Companies Act, 1956, read with Companies (Disclosures of Particulars in the Report of Board of Directors) Rules, 1988, are given as an annexure to this report.

AUDITORS

M/S D.Basu & Co., Chartered Accountants retire and are eligible for reappointment.

PARTICULARS OF EMPLOYEES

No Employee of the Company was in receipt of remuneration exceeding the limits prescribed under section 217(2A) of the Act read with the Companies (Particulars of Employees) Rules,1975.

RELATED PARTY TRANSACTIONS

A statement of related party transactions pursuant to Accounting Standard 18 forms a part of the Annual Report

PERSONNEL

Industrial Relations continued to be peaceful and cordial during the year.

APPRECIATION

The Board wishes to place on records its sincere appreciation for the continued assistance and support extended to the Company by its Customers, Bankers, Vendors, Government Authorities and Employees.

Your Directors acknowledge with gratitude the encouragement and support extended by our valued Shareholders.

Registered Office: By the Order of the Board of Directors

3, Hungerford Street N Champati

Kolkata-700017 Director Dated :31st May, 2010