Silver Oak (India) Ltd Management Discussions.


A) Industry Structure & Development and Outlook

Indian Made Foreign Liquor (IMFL) is "state subject" and as such every State has its own policies in respect of this industry. Madhya Pradesh, the state in which the company operates, has its own policy, both for manufacture as well as for marketing/distribution. The industry is expected to achieve average annual growth and many new players are expected to be stepping into the industry.

B) Opportunities & Threats, Risks & Concerns

The Companys strength is built around domestic marketing network. The growth of the industry provides the necessary opportunities for the company to grow. However, the industry is under constant pressure due to steep competition from unorganized sector and the industrial scenario in the nearby area.

C) Internal Controls and their adequacy

The company has adequate internal control systems, commensurate with the size and operations of the company. The scope of the internal audit is to ensure the control systems established by the management are correctly implemented and to suggest any additional changes required to strengthen the existing systems. These Systems and procedure are reviewed at regular intervals through internal audits, statutory audits and audit committee.

D) Human Resource and Industrial Relations

Industrial relations continue to remain peacefully at the factory and other offices of the Company and all the employees are working with the company for a common objective. Industrial relations of the company were cordial during the year.


The statement in this report is based on the experience and information available to the company in its businesses and assumptions with regard to economic conditions, Government and regulatory policies. The performance of the company is dependent on these factors. It may be materially influenced by various factors including change in economic conditions, government regulations, tax laws and other incidental factors, which are beyond the companys control, affecting the views expressed in or perceived from this report.


Shri Bhupendra Singh, whole time director of the Company, retires by rotation and being eligible offers himself for re-appointment.

Your Directors recommend the appointment and re-appointment of the aforesaid Directors.


Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed that:

(i) in the preparation of the annual accounts for the year ended March 31,2013, the applicable accounting standards read with requirements set out under Schedule VI to the Companies Act, 1956, have been followed and there are no material departures from the same;

(ii) the Directors have selected such accounting policies and applied them consistently and made judgments And estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2013 and of the profit of the Company for the year ended on that date!

(iii) the Directors have taken proper and sufficient care for the maintenance 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! and

(iv) the Directors have prepared the annual accounts of the Company on a going concern basis.


The Company has not accepted any deposits from public during the year under review.


There are no employees whose particulars are required to be shown in terms of provisions of Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended.


M/s. O.T. Gandhi & Co., Chartered Accountants, Indore, Statutory Auditors of the Company holds office until the conclusion of the ensuing Annual General Meeting, and is eligible for re-appointment. The Company has received their consent under section 224(lB) of the Companies Act, 1956 for such re-appointment.

The notes to the accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments.


Information in respect of Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo pursuant to provisions of Section 217(l)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is Annexure" A" which forms part of this Report.


The Companys shares are listed in the following Stock Exchanges:

1. The Stock Exchange, Mumbai.

2. The M. P. Stock Exchange, Indore.

3. The Delhi Stock Exchange Association, Delhi.

4. The Madras Stock Exchange Ltd., Chennai.

5. The Ahmedabad Stock Exchange, Ahmedabad.


A report on Corporate Governance along with Auditors Certificate is annexed herewith. ACKNOWLEDGEMENT:

Your Directors take this opportunity to place on record their appreciation for the confidence reposed and co-operation extended to the Company by the Bankers of the Company, State Bank of Travancore, other Banks, Central and State Government Authorities, Business Associates, the family of Shareholders and others.

Your Directors also wish to place on record their appreciation for the dedicated and hard work put in by the Officers, Employees and Other Staff Members, at all levels.

By Order of the Board of Directors
Place : Indore (M.P.) Bhupendra Singh
Date : 30th May, 2013 Director


Information under Section 217(l)(e) read Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 forming part of the Directors Report for the year ended 31st March, 2013.



A. Electricity Consumption:

1. Electricity Current Year Previous Year
2012-2013 2011-2012
(a) Purchased:
(i) Units Purchased: 92505.00 98499.00
(ii) Total Amount (Rs.) 715443.00 662279.00
(iii) Power cost per unit(Rs.) : 7.73 6.72
(b) Own Generation-
Through D.G.Set
(i) Production in Cases : 234767.00 253873.00
(ii) Units consumption per case : 0.39 0.39
(iii) Cost of power per case (Rs.) : 3.04 2.60

B. Technology Absorption, Adaptation and Innovation, Research and Development-

6) Specific Areas in which R&D- The Company is engaged in Carried out by the Company bottling of Liquor for which and benefits derived as a technology has established Result thereof in several years. Therefore, no further research is being carried out.

C. Foreign Exchange Earnings and Outgo:

Current Year Previous Year
(i) Earnings : NIL NIL
(ii) Outgo(Rs.) NIL NIL


By Order of the Board of Directors
Place : Indore (M.P.)
Date : 30th May, 2013 Director Director