INDEX. Directors Report 6. Compliance Certificate 11. Report on Corporate Governance 15. Management and Discussion Analysis 28

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2 INDEX Corporate Information 1 Directors Biography 2 Directors Report 6 Compliance Certificate 11 Report on Corporate Governance 15 Management and Discussion Analysis 28 Auditor s Report and Financial Statements 35 Balance Sheet 40 Profit & Loss Account 41 Cash Flow Statement 42 Schedules and Other Details 43 Attendance Slip and Proxy Form 56 Second Annual Report

3 CORPORATE INFORMATION BOARD OF DIRECTORS Mr. Venugopal Bang Chairman Mr. Brijgopal Bang Managing Director Mr. Viswanath Cheruvu Independent Director Dr. Mithilesh Kumar Sinha Independent Director Mr. Vijay Ajgaonkar Independent Director Mr. Krishnakumar Bang Non Executive Director COMPANY SECRETARY & COMPLIANCE OFFICER Ms. Khyati Desai STATUTORY AUDITORS M/s. Rajendra K. Gupta & Associates Room No. 3, Kshipra Society, Akurli Cross Road No. 1, Kandivali (East), Mumbai Tel.: (022) INTERNAL AUDITORS FRG & Company, Chartered Accountants, Office no. 303, Ratan Galaxie, J. N. Road, Mulund (W), Mumbai REGISTERED OFFICE PRACTISING COMPANY SECRETARIES M/s. Kothari H. & Associates 208, 2nd Floor, BSE Building, Dalal Street, Fort, Mumbai Tel.: (022) E mail: hiteshkotharics@yahoo.co.in BANKERS BANK OF INDIA AXIS BANK REGISTRAR & TRANSFER AGENT 50, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel (West) Mumbai Tel.: (022) Fax: (022) WEBSITE Karvy Computershare Pvt. Ltd. Plot No Vittal Rao Nagar, Madhapur, Hyderabad Tel.: (91 40) Varghese@karvy.com 1 Second Annual Report

4 DIRECTORS BIOGRAPHY BRIJGOPAL BANG MANAGING DIRECTOR: Mr. Brijgopal Bang is Commerce Graduate and also completed Master of Management Studies (MMS) from Bombay University in the year 1992.He is the promoter and Managing Director of the Company. He has been actively involved in the business of the Company since incorporation and has played a key role in the growth of the Company with his inputs in strategic planning and business development. VENUGOPAL BANG CHAIRMAN AND EXECUTIVE DIRECTOR: Mr. Venugopal Bang is a Commerce graduate and completed Chartered Accountancy course in the year He is the promoter and Chairman of our Company. He started his career by joining his own family business of trading of paper and jute products, and also into investment / trading of securities in the capital market. MR. KRISHNAKUMAR BANG NONEXECUTIVE DIRECTOR: Mr. Krishna Kumar Bang is aged 45 years and a Chartered Accountant. He looks after the day to day affairs of the business of the Company and is a Promoter Director of the Company and since then is involved into the operations of the Company. MR. VISWANATH CHERUVU NONEXECUTIVE & INDEPENDENT DIRECTOR: Mr. Viswanath Cheruvu is a fellow member of the Institute of Chartered Accountants of India. He is a Practicing Chartered Accountant and partner in M/s. Cheruvu & Associates, Hyderabad. He has been practicing for over 25 years in the field of Taxation and Finance. DR. M. K. SINHA NON EXECUTIVE & INDEPENDENT DIRECTOR: Dr. M.K. Sinha is a Doctorate in Operation Research and has done his Masters in Mathematics. He retired as the Chairman & Managing Director of State Bank of India (SBI) in 1995 after serving the bank for almost 39 years. He Over his period of service with the SBI, he has been involved in critical areas like management audit, human resource & organizational development, foreign exchange, fund management, financial restructuring etc. He was a representative of SBI for the East European countries at Moscow for almost 4 years. He was on the Board of seven associate banks of SBI while working with the SBI. MR. V.D. AJGAONKAR NON EXECUTIVE & INDEPENDENT DIRECTOR: Mr. V.D. Ajgaonkar is CAIIB, M.Com and LL.B. He served State Bank of India from 1979 to 1995 in different capacities and from 1996 to 2000; he was on deputation to SBI Capital Markets Limited. After serving SBI Capital Markets Limited, in February, 2000, he joined Times Guarantee Financial Limited and served their till March, He has experience in project finance and other related capital market activities. 2 Second Annual Report

5 NOTICE NOTICE is hereby given that the SECOND ANNUAL GENERAL MEETING of the Members of THOMAS SCOTT (INDIA) LIMITED will be held on Saturday, 29th September, 2012 at 10:00 A.M. at the Garware Club House, Wankhede Stadium, Banquet Hall, 2nd Floor, D Road, Churchgate, Mumbai to transact the following business: ORDINARY BUSINESS 1. To receive, consider and adopt the Audited Balance Sheet of the Company as at 31st March, 2012 and the Profit & Loss Account for the year ended as on that date together with the Reports of the Directors & Auditor s thereon. 2. To reappoint Dr. M. K. Sinha as the Director of the Company who retires by rotation and being eligible, offers himself for reappointment. 3. To reappoint Mr. Venugopal Bang as the Director of the Company who retires by rotation and being eligible, offers himself for reappointment. 4. To appoint M/s. Rajendra K. Gupta & Associates, Chartered Accountants as the Statutory Auditors of the Company and to authorize the Board to fix their remuneration. For and on behalf of the Board of Directors Sd/ VENUGOPAL BANG CHAIRMAN Place: Mumbai Date: August 27, Second Annual Report

6 NOTES: 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE PROXIES IN ORDER TO BE EFFECTIVE MUST BE RECEIVED BY THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE MEETING. 2. The Register of Members and Share Transfer Books of the Company will remain closed from Thursday, 27th September, 2012 to Saturday, 29th September, 2012 (both days inclusive). 3. The Members are requested to notify their change of address along with their pin code immediately to the Registrars & Transfer Agent Karvy Computershare Private Limited. Members holding shares in dematerialized form are requested to intimate any change in their address, bank details, etc. to their respective Depository Participants. 4. Those shareholders who have not dematerialised their shares are advised to dematerialise their shareholding, to avoid inconvenience in future. 5. Members holding shares in dematerialised form are required to bring their Client ID and DP ID Nos. for easier identification of attendance at the meeting. 6. Members/Proxy Holders are requested to bring their copy of Annual Report and Attendance Slip sent herewith duly filled in to the Annual General Meeting. 7. Members intending to seek explanation / clarification about the accounts at the meeting are requested to inform the Company at least a week in advance of their intention to do so in order to enable the Company to compile the information and provide replies at the meeting, if the Chairman permits such information to be furnished. 8. Members are requested to intimate their IDs for correspondence and quicker response to their queries. 9. A Body Corporate being a member shall be deemed to be personally present at the meeting if represented in accordance with the provisions of Section 187 of the Companies Act, Members can address their queries to the Company at investor.tsil@banggroup.com. 11. In case of Joint holders attending the meeting, only such Joint holder who is higher in the order of names will be entitled to vote. 4 Second Annual Report

7 12. ADDITIONAL INFORMATION OF DIRECTORS BEING APPOINTED / REAPPOINTED AT THE ANNUAL GENERAL MEETING AS PER CLAUSE 49 IV G (i) OF THE LISTING AGREEMENT The details pertaining to Directors liable to retire by rotation and eligible for reappointment as required to be provided pursuant to Clause 49 IV G (i) of the Listing Agreement with Stock Exchanges is as follows: Name of Director Dr. M. K. Sinha Mr. Venugopal Bang Date of Birth Date of Appointment Expertise in specific function area Qualifications Directorships held in other Indian public limited companies as on 31st March 2012 Chairman / Member of the Committee of Board of Directors of the Company as on 31st March, 2012 Chairman / Member of Committees of Board of Directors of other Indian public limited Companies as on 31st March, 2012 No. of Shares held in the Company as on 31st March, Second Annual Report Planning & Strategy Doctorate in Operational Research & Masters in Mathematics. 5 (Five) 1. Jhaveri Flexo India Limited 2. Amines & Plasticizers Limited 3. First Winner Industries Limited 4. Microqual Techno Limited 5. Bang Overseas Limited 1. Audit Committee Member 2. Remuneration Committee Chairman 1. Jhaveri Flexo India Limited Chairman (Audit Committee) 2. First Winner Industries Limited Chairman (Audit Committee) 3. First Winner Industries Limited Member (Remuneration Committee) 4. First Winner Industries Limited Member (Shareholders/Investors Grievance Committee) 5. Bang Overseas Limited Member(Audit Committee ) 6. Bang Overseas Limited Chairman (Remuneration Committee ) NIL Finance B.Com., C.A. 2(Two) 1. Vedanta Creations Limited 2. Bang Overseas Limited 1. Shareholders/Investor s Grievance Committe Member 2. Management & Finance Committee Member 1. Bang Overseas Limited Member (Shareholders/Investor s Grievance Committee) NIL

8 DIRECTORS REPORT The Members of THOMAS SCOTT (INDIA) LIMITED Your Director s present with immense pleasure, the SECOND ANNUAL REPORT along with the Audited Statement of Accounts of the Company for the year ended 31st March FINANCIAL HIGHLIGHTS Description Year Ended Stand Alone (Rs. In lacs) Year Ended Revenue Other Income Total Expenditure Earnings before Interest, Depreciation and Tax (887.71) (0.50) (EBIDT) Less: Interest Earning Before Depreciation And Tax (EBDT) (906.66) (0.50) Less: Depreciation Profit before Tax (PBT) (954.19) (0.50) Tax Provision (Current, Deferred, FBT and Earlier Year adjustment) (0.00) 0.00 Profit after Tax (PAT) (954.19) (0.50) PERFORMANCE REVIEW As your Company is incorporated in October 2010 and as compared to the last year, it has gained a revenue of Rs lakhs out of its operational activities which has also lead to increase in total expenditure of the company to Rs lakhs which has lead to Loss on account of the increase of expenditure over Income and other unfavorable market factors. SHARE CAPITAL The Paid up Capital of the Company for the financial year ended March 31, 2012 is Rs.3,39,00,000/ divided into 33,90,000 Equity Shares of Rs. 10/ each as compared to Rs. 5,00,000 divided into 50,000 Equity Shares of Rs. 10/ each as on March 31, Second Annual Report

9 DIVIDEND AND TRANSFER TO RESERVES In view of the business loss during the year, your Director s do not recommend any dividend for the year The Register of Members and Share Transfer Books will remain closed from 27th September, 2012 to 29th September, 2012, both days inclusive. The Annual General Meeting of the Company will be held on 29th September, BUSINESS & OPERATIONS DOMESTIC & OVERSEAS The Company is presently into the Retail Business of Men s Garments under its Brand THOMAS SCOTT which has a world class Retail network of a complete Menswear and Lifestyle and has 11 Retail Outlets and also markets its products through LFS (Large Format Stores) all over the Country but plans for business expansion. Your Company had to close some of its Retail Outlets due to locational disadvantage. Your Company has also launched its New Brand Bang & Scott into the market for fabric shirt pieces and fabric to be sold in Retail. THOMAS SCOTT brand products are retailed through various point of sales comprises of eleven retail outlets, franchisees, Large Format Stores (LFS) spread over across country. We also export Thomas Scott Shirts to UAE. DEMERGER Your Company was incorporated on 22nd October, 2010, with the objective of taking over the Retail Division and Business of Bang Overseas Limited (the Transferor Company) under the brand name, Thomas Scott, on a going concern basis vide a Scheme of Arrangement (the Scheme) in accordance with Sections 391 to 394 of the Companies Act, The Honorable High Court of Mumbai approved the Scheme between Bang Overseas Limited, Thomas Scott (India) Limited and its respective Shareholders vide its order dated 22nd July, The Scheme became effective on 5th August, The Appointed date of demerger is 1st April Pursuant to the Scheme, the Retail Division of Bang Overseas Limited under the brand, Thomas Scott, was demerged into Thomas Scott (India) Limited with effect from 1st April The Balance Sheet and Profit and Loss Account and related financial statements have been made in accordance with the provisions of the said Scheme. As per the Scheme, the Board of Directors of the Company issued and allotted on 29th August, 2011, 33, 90,000 fully paidup equity shares of Rs.10/ each to the Share holders of Bang Overseas Limited whose names appeared in the Register of Members as on the Record Date, viz. 25th August, 2011, in the ratio of 1 (one) equity share of Rs.10/ each for every 4 (four) equity shares of Rs. 10/ each held in Bang Overseas Limited. Further the Original Share Capital of Rs.5, 00,000/ (50,000 equity shares of Rs.10/ each) was cancelled and taken to Capital Reserve account. The 33, 90,000 Equity Shares were listed on the National Stock Exchange of India Limited and Bombay Stock Exchange on 30th January Second Annual Report

10 SUBSIDIARY COMPANIES As on March 31, 2012, Your Company has No Subsidiaries. DIRECTOR S On account of the Demerger and upon the Listing of the Equity Shares of the Company on the Stock Exchanges, there has been appointment of Mr. Viswanath Cheruvu, Mr. Vijay D. Ajgaonkar and Dr. M. K. Sinha, Independent Directors on the Board of the Company in compliance with Clause 49 of the Listing Agreement as entered into with the Stock Exchanges. In terms of the provisions of Sections 255 and 256 of the Companies Act, 1956 and the Articles of Association of the Company, Dr. M. K. Sinha and Mr. Venugopal Bang retire by rotation at the ensuing Annual General Meeting and, being eligible, have offered themselves for reappointment. Brief resumes of the Directors proposed to be reappointed, nature of their expertise in specific functional areas and names of companies in which they hold Directorships and Memberships / Chairmanships of Board Committees, as stipulated in Clause 49 of the Listing agreement with the Stock Exchanges are provided as an attachment of the notice calling the Annual General Meeting. MANAGEMENT DISCUSSION AND ANALYSIS Management Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges in India, is presented in a separate section forming part of the Annual Report. STATUTORY AUDITORS M/s. Rajendra K. Gupta & Associates, Chartered Accountants, the retiring Statutory Auditors of the Company, hold office until the conclusion of the ensuing Annual General Meeting and are eligible for reappointment. The Company has received a confirmation from the Auditors to the effect that their reappointment, if made would be within the prescribed limits under Section 224(1B) of the Companies Act, 1956 and that they are not disqualified for such reappointment within the meaning of Section 226 of the said Act. Your Directors recommend their reappointment as the Statutory Auditors of the Company. AUDITOR S REPORT The observations made in the Auditor s Report, read together with the relevant notes thereon are selfexplanatory and hence, do not call for any comments under Section 217 of the Companies Act, CORPORATE GOVERNANCE REPORT Your Company has complied with the requirements of Clause 49 of the Listing Agreement regarding Corporate Governance. A Report on the Corporate Governance and Practicing Company Secretary s Certificate on Compliance of Corporate Governance, are annexed as a part of this Annual Report for the information of the Shareholder s. The Company has also obtained the requisite certificate from the Managing Director of the Company. The Managing Director s declaration regarding Compliance with Company s Code of Conduct for Directors and Senior Management Personnel forms a part of the Report on Corporate Governance. 8 Second Annual Report

11 PARTICULARS OF EMPLOYEES In terms of the provisions of Section 217(2A) of the Companies Act, 1956, read with (Particulars of Employees) Rules 1975 as amended, the names and other particulars are required to be set out in the Annexure to the Directors Report. However, there were no Employees drawing Remuneration more than prescribed under Section 217 (2A) of the Companies Act, Therefore, your Company is not required to disclose such particulars. FIXED DEPOSITS During the year under review, the Company has not accepted any Deposit under Section 58A of the Companies Act, 1956, read with Companies (Acceptance of Deposits) Rules, As such, no amount of Principal or Interest is outstanding as on the Balance Sheet Date. LISTING The Company s Shares got listed on National Stock Exchange of India Limited and Bombay Stock Exchange Limited on January 30, 2012 and the Company has paid the Listing fees to the above Exchanges for the year CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT AND INNOVATION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Particulars required to be furnished pursuant to Section 217(l)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988: (i) (ii) Part A & B of the Rules, pertaining to conservation of energy & technology absorption are not applicable to the Company. FOREIGN EXCHANGE EARNING AND OUTGO: Foreign Exchange Earnings during the year : NIL Foreign Exchange Outgo during the year : NIL DIRECTORS RESPONSIBILITY STATEMENT To the best of their knowledge and belief and according to the information and explanation obtained by them, your Director s make the following statement in terms of Section 217(2AA) of the Companies Act, 1956: i. in the preparation of the annual accounts for the year ended March , the applicable Accounting Standards read with the requirements set out under Schedule VI of the Companies Act, 1956 have been followed and there are no material departures from the same, if any; ii. that 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 at the end of the financial year and of the profit of the Company for that period; 9 Second Annual Report

12 iii. iv. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; that the Directors have prepared the Annual Accounts on a going concern basis. TRANSFER OF UNPAID / UNCLAIMED AMOUNTS TO INVESTOR EDUCATION PROTECTION FUND (IEPF) As the Company is incorporated on October 22, 2010, during the year, there were no amounts which remained unpaid / unclaimed for a period of 7 years and which were required to be transferred by the Company to the Investor Education and Protection Fund established by the Central Government pursuant to Section 205C of the Companies Act, ACKNOWLEDGEMENT Your Directors would like to thank all its shareholders, associates, customers Bankers, Investors for their support, cooperation extended to the Company. It also thanks the employees and their hard work which has played a very important part and role in the Company s working. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS Sd/ VENUGOPAL BANG CHAIRMAN PLACE: Mumbai DATE: August 27, Second Annual Report

13 To, The Members, THOMAS SCOTT (INDIA) LIMITED, 50, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel (W), Mumbai COMPLIANCE CERTIFICATE We have examined the registers, records, books and papers of THOMAS SCOTT (INDIA) LIMITED, ( the Company ) as particularly required to be maintained under the Companies Act, 1956, ( the Act ) and the rules made thereunder and also the provisions contained in the Memorandum and Articles of Association of the Company for the financial year ended 31st March, 2012 ( the financial year ). In our opinion, and to the best of our information and according to the examinations carried out by us and explanations furnished to us by the Company, its officers and agents, we certify that in respect of the aforesaid financial year: 1. The Company has kept and maintained all registers as stated in Annexure A to this certificate, as per the provisions of the Act and the rules made thereunder and all entries therein have been recorded. 2. The Company has filed the forms and returns as stated in Annexure `B to this certificate, with the Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act and the rules made thereunder. 3. The Company being a Public Limited Company has the minimum prescribed paidup capital and its number of members are 7 (Seven) and the Company during the year under scrutiny: (i) (ii) has not invited public to subscribe for its shares or debentures; and has not invited or accepted any deposits from persons other than its members, directors or their relatives. 4. The Board of Directors duly met Seven times on June 20, 2011, August 10, 2011, August 18, 2011, August 29, 2011, November 21, 2011, January 13, 2012 and January 28, 2012 in respect of which meetings notices were given and the proceedings were recorded and signed in the Minutes Book maintained for the purpose.. 5. The Company has closed its Register of Members during the financial year at the time of its Annual General Meeting held on August 23, The Annual General Meeting for the financial year ended on 31st March 2011 was held on August 23, 2011 after giving due notice to the members of the Company and the resolutions passed thereat were duly recorded in the Minutes Book maintained for the purpose. 7. During the year, One ExtraOrdinary General Meeting held on July 19, 2011 after giving due notice to the members of the Company and the resolutions passed thereat were duly recorded in the Minutes Book maintained for the purpose. 11 Second Annual Report

14 8. As per explanation and information, the Company has not given, advanced any loan to its Directors or persons or firms or Companies without comply of Section 295 of the Act, during the financial year. 9. The Company has duly entered into contracts, which are falling within the purview of Section 297 of the Act 10. The Company has made the necessary entries in the register maintained under Section 301 of the Act. 11. As there were no instances falling within the purview of Section 314 of the Act, the Company was not required to obtain any approvals from the Board of Directors, Members or Central Government, as the case may be. 12. The Company has not issued any duplicate certificates during the financial year. 13. During the financial year: a. There was no transfer / allotment / transmission of securities during the year. b. The Company has not deposited any amount in a separate bank account as no dividend was declared. c. The Company has not posted warrants to any member of the Company as no dividend was declared. d. There were no amounts in unpaid dividend account, application money due for refund, matured deposits, matured debentures and the interest accrued which have remained unclaimed or unpaid for a period of seven years be transferred to Investor Education and Protection Fund. e. The Company has complied with the requirements of Section 217 of the Act. 14. The Board of Directors of the Company is properly constituted. There was an Appointment of Dr. Mithilesh Kumar Sinha, Mr. Vijay Dattatraya Ajgaonkar and Mr. Viswanath Cheruvu as Non Executive Independent Directors of the Company and followed by Change in Designation of Mr. Brijgopal Bang and Mr. Venugopal Balaram Bang, during the financial year. 15. The appointment of Mr. Brijgopal Balaram Bang as Managing Director has been made in compliance with Section 269 of the Act read with Schedule XIII thereof. 16. The Company has not appointed any sole selling agents during the financial year. 17. The Company has complied with the Central Government, Company Law Board, Regional Director, Registrar of Companies and/or such authorities prescribed under the various provisions of the Act. 18. The Directors have disclosed their interest in other firms/ companies to the Board of Directors pursuant to the provisions of the Act and the rules made thereunder. 19. Pursuant to the Demerger, the Company has issued 33,90,000 Equity Shares of Rs. 10/ each on 29th August, 2011 upon the cancellation of its Old Equity Share Capital and after complying all the necessary applicable provisions under the Act. 20. The Company has not bought back any shares during the financial year. 12 Second Annual Report

15 21. There was no redemption of preference shares or debentures during the financial year. 22. There were no transactions necessitating the Company to keep in abeyance the rights to dividend, rights shares and bonus shares pending registration of transfer of shares. 23. The Company has not invited/ accepted any deposits including any unsecured loans falling within the purview of Section 58A during the financial year. 24. The Company has not borrowed any amount as per Section 293(1) (d) of the Act during the financial year under scrutiny. 25. The Company has complied with the provisions of Section 372A of the Act with regard to loans given, investment made, or guarantee given or securities provided to other body corporate during the financial year. 26. The Company has not altered the provisions of the Memorandum of Association with respect to situation of the Company s registered office from one state to another during the year under scrutiny. 27. The Company has not altered the provisions of the Memorandum of Association with respect to the objects of the Company during the year under scrutiny. 28. The Company has not altered the provisions of the Memorandum of Association with respect to name of the Company during the year under scrutiny. 29. The Company has altered the provisions of the Memorandum of Association with respect to share capital of the company during the year under scrutiny. 30. The Company has not altered its Articles of Association during the financial year. 31. There was no prosecution initiated against or show cause notices received by the Company, during the financial year for offences under the Act. 32. The Company has not received any money as security from its employees during the financial year. 33. The Company has not deducted any contribution towards Provident Fund during the financial year in terms of Section 418 of the Act as the said Section is not applicable to the Company. FOR KOTHARI H. & ASSOCIATES COMPANY SECRETARIES Hitesh Kothari (Proprietor) C. P. No Place: Mumbai Date: 27th August, Second Annual Report

16 Annexure A Registers as maintained by the Company 1. Register of members under Section Register of Share Transfers 3. Register of particulars of contracts in which directors are interested under Section Register of Directors, Managing Director, Manager and Secretary under Section Register of director s shareholding under Section Minutes book of General Meetings and Board Meetings under Section Register of Director s Attendance Annexure B Forms and Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government or other authorities during the financial year ended 31st March Sr. No. Form No./ Return For Date of filing 1 Form Registration of Special Resolutions 01/08/2011 Yes N.A. (Increase in Authorised Share Capital of the Company & Alteration in the Memorandum of Association) 2 Form 5 97 Increase in Authorised Share Capital 02/08/2011 Yes N.A. of the Company 3 Form (1) Filing of the CTC of the High Court 05/08/2011 Yes N.A. Order (Demerger of the Retail Division ) 4 Form (1) Filing of the CTC of the High Court 06/08/2011 Yes N.A. Order(reduction in Share Premium ) 5 Form (2) Change in Designation of Directors 26/09/2011 No Yes 6 Form (2) Appointment of NonExecutive 28/09/2011 No Yes Independent Directors 7 Form 25C 269 Appointment of Managing Director 10/10/2011 Yes N.A. 8 Form 20B 159 Annual Return 25/10/2011 No Yes (For F.Y ) 9 Form 23AC 220 Balance Sheet and P & L Account 24/12/2011 Yes N.A. & ACA (For F.Y. Filed under Section Whether filed within prescribed time Yes/ No If delay in filing whether requisite additional fee paid Yes/ No ) 10 Form (A) Appointment of Company Secretary 16/03/2012 No Yes FOR KOTHARI H. & ASSOCIATES COMPANY SECRETARIES Hitesh Kothari (Proprietor) C. P. No Place: Mumbai Date: 27th August, Second Annual Report

17 REPORT ON CORPORATE GOVERNANCE The Report on Corporate Governance, for the financial year April 1, 2011 to March 31, 2012 as per the format prescribed by SEBI and incorporated in Clause 49 of the Listing Agreement is set out as below: 1. COMPANY S PHILOSOPHY ON CORPORATE GOVERNANCE: Your Company believes in transparency and clarity in its disclosures and operations as well. It firmly considers Corporate Governance Practices and highly recommends the same. Corporate Governance encourages accountability, transparency and clarity in operations which leads to better decision making and increase Shareholders value. Better Corporate Governance builds up the Shareholders confidence in the Company which is truly an intangible and the most expensive asset to the Company amongst all of its other assets. At Thomas Scott (India) Limited, we believe in building, increasing and the most importantly maintaining shareholders value now and in future too. By following good Corporate Governance practices and transparency in its operations and disclosures, one can only build in shareholders confidence and protect their interest as well which will finally lead the Company to high level of success and achievements. Our Corporate Governance Philosophy is linked with Transparency, Accountability, Responsibility, Communication with our shareholders. Shareholders are the Backbone of our Company. We accord highest priority to the performance oriented systems and protect the interests of all our shareholders, particularly the minority shareholders. 2. BOARD OF DIRECTORS a) Composition The Board of TSIL has an optimum combination of Executive, NonExecutive and Independent Directors. The Chairman being an Executive Director, as per Listing Agreement, half of the Board should comprise of Independent Directors. Therefore, the Company should have minimum 3 (Three) Independent Directors. As on 31st March 2012, the Board comprised of six (6) Directors, out of which 2 (Two) were Executive and 3 (Three) were Independent Directors and one (1) was Non Executive Director. There is No Institutional Nominee on the Board. Details and Brief Particulars of the Directors retiring by rotation are provided along with the Notice calling the Annual General Meeting and therefore forms a part of this Annual Report. Category Promoter / Chairman & Director Executive Promoter / Managing Director Non Executive and Independent Director Non Executive and Independent Director Non Executive and Independent Director Non Executive Director Name of the Director Mr. Venugopal Bang Mr. Brijgopal Bang Mr. Viswanath Cheruvu Dr. Mithilesh Kumar Sinha Mr. Vijay Ajgaonkar Mr. Krishnakumar Bang Pursuant to the provisions of the Companies Act 1956, Dr. M.K. Sinha and Mr. Venugopal Bang, retire by rotation and being eligible, offer themselves for reappointment. None of the Directors on the Company s Board is a member of more than 10 (Ten) Committees and Chairman of more than 5 (Five) Committees across all the companies in which he is a Director. All the Directors have made necessary disclosures regarding the Committee positions held by them in other Companies. Also none of the Directors on the Board hold office as a Director in more than 15 companies at a time 15 Second Annual Report

18 The requisite information as enumerated in Annexure IA to Clause 49 of the Listing Agreement is being made available to the Board for their discussion and consideration. The maximum time gap between two Board Meetings did not exceed 4 months. b) Board Procedure The Board has complete access to any information within the Company. The Directors of the Company are informed about the Agenda of the Board Meetings and Committee Meetings, containing relevant information/ supporting data, as required well in advance, to enable the Board to take informed decisions and be well prepared. Statutory Auditors are also requested to attend the Board or Committee Meeting as and when required. When deemed expedient, the Board also approves by circular resolution important items of business which are permitted under the Companies Act, 1956, and which cannot be postponed till the next Board Meeting. Matters discussed at the Board Meeting generally relate to the Company s performance, quarterly results of the Company, approval of relatedparty transactions, General Notice of Interest of Directors, Review of the Reports of the Internal Auditors, Compliance with their Recommendations, Suggestions, Compliance of any Regulatory, Statutory or Listing requirements, etc. c) Number of Board Meetings During the year, 7 (Seven) Board Meetings were held. These were on June 20, 2011, August 10, 2011, August 18, 2011, August 29, 2011, November 21, 2011, January 13, 2012 and January 28, d) Director s Attendance Record and Directorships Attendance at Board Meeting held during and the last AGM, number of Directorships, Memberships / Chairmanship in Public Companies during Name of Directors Mr. Brijgopal Bang (Managing Director) Mr. Venugopal Bang (Chairman) Category Promoter Director Promoter Director No. of meetings held No. of meetings attended Whether attended last AGM No. of directorships of public limited companies No of Shares held in the Company 7 6 Yes Yes Mr. Viswanath Cheruvu Dr. M K Sinha Mr. V. D. Ajgaonkar Mr. Krishnakumar Bang Non Executive & Independent Director Non Executive & Independent Director Non Executive & Independent Director 7 0 No 2 Nil 7 2 No 5 Nil 7 4 No 5 Nil Non Executive Director 7 7 Yes Second Annual Report

19 e) Information Supplied to the Board Amongst others, information supplied to the Board includes: Ø Results of the Company Ø Minutes of Meetings of Audit Committee and other Committees of the Company Ø Minutes of the Previous Board Meetings Ø Details with respect to the Operations of the Company Ø Materially important show cause, demand, prosecution and penalty notices Ø Fatal or serious accidents or dangerous occurrences Ø Any materially relevant default in financial obligations to and by the company Ø Nonpayment for goods sold by the company Ø Any issue which involves possible public or product liability claims of a substantial nature Ø Details of any joint venture or collaboration agreement Ø Sale of material nature of investments, assets, which is not in normal course of business Ø Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse exchange rate movement Ø Noncompliance of any regulatory, statutory or listing requirements Ø Related Party Transactions and Register u/s 301 of the Companies Act, 1956 Ø Investor Grievances and Redressal Status Ø Compliance of the SEBI (SAST) Regulations from time to time Ø Risk Assessment & Minimization Procedures Ø Internal Audit Certificate Ø Abstracts of Circular Resolutions passed Ø Performance of the Company and Business Plans /Strategies The Board is presented with detailed Notes along with the Agenda papers giving in detailed and comprehensive information on the related subject well in advance of the Meeting. f) Directors with Materially Pecuniary or Business Relationship with the Company There have been no materially pecuniary transactions or relationship between the Company and its Non Executive and/or Independent Directors during the year g) Post Meeting Governance The Company follows a PostMeeting Governance System wherein effective postmeeting followup, review and reporting process on the actions taken, discussions on the tasks to be undertaken as per the meeting, Status on the pending tasks as decided and discussed in the Meeting, Application of the Recommendations/Suggestions as extended at the Board Meeting and working on the rectification of mistakes, if any, pointed out at the Meeting is undertaken. Also, the Minutes of the Meetings of the Board and its Committees are individually circulated to all the Directors and after due discussions, confirmed at the subsequent Meeting. 17 Second Annual Report

20 2. CODE OF CONDUCT The Board of Directors has laid down a Code of Conduct (Copy available on the Company s Website), applicable to all Board Members and Senior Management Personnel of the Company ( Directors and Officers of the Company). All the Directors & Officers have confirmed compliance with the aforesaid Code of Conduct. A Declaration by Managing Director affirming the Compliance with the Code of Conduct by the Directors& Officers of the Company is annexed at the end of this Report. 3. AUDIT COMMITTEE The primary objective of the Audit Committee is to overview and maintain a financial oversight and an eye on the Financial Processes/Controls/Reporting Systems of the Company in order to ensure accurate, timely, relevant disclosures along with proper transparency, clarity, integrity and quality of Financial Reporting. The Audit Committee acts a Link between the Statutory and the Internal Auditors of the Company. a) Composition The Audit Committee of the Company consists of qualified and NonExecutive Directors. Sr. No. Name of the Director Designation 1 Mr. Viswanath Cheruvu, NonExecutive Independent Director Chairman 2 Dr. Mithilesh Kumar Sinha, NonExecutive Independent Director Member 3 Mr. Vijay Ajgaonkar, NonExecutive Independent Director Member 4 Mr. Brijgopal Bang Managing Director Member All the members of the Audit Committee possess strong accounting and financial management expertise. The Company Secretary acts as a Secretary to the Committee. b) Terms of Reference The role and terms of reference of the Audit Committee cover the matters specified for Audit Committees under Clause 49 of Listing Agreement as well as in Section 292A of the Companies Act, c) Meetings and Attendance during the year There have been No Meetings of the Audit Committee during the year as consequent upon the Demerger of the Retail Division of Bang Overseas Limited into the Company, the Equity Shares of the Company got listed on the Stock Exchanges on January 30, Second Annual Report

21 d) Internal Auditors The Company appointed FRG & Company, Chartered Accountants as the Internal Auditor for the financial year to review the Internal Control Systems of the Company and to report thereon. The Report of the Internal Auditor is reviewed by the Audit Committee. 4. SHAREHOLDERS /INVESTOR S GRIEVANCE COMMITTEE The Shareholders /Investor s Grievance Committee specifically looks into the transfer of shares and related matters, redressing the complaints of Shareholders and Investors such as Transfer of Shares, non receipt of Balance Sheet, nonreceipt of Annual Report, nonreceipt of Declared Dividends and Dematerialization of Shares and other related matters. a) Composition The Committee comprises of the following members: Sr. no. Name Designation 1 Mr. Vijay Ajgaonkar, NonExecutive Independent Director Chairman 2 Mr. Brijgopal Bang, Managing Director Member 3 Mr. Venugopal Bang, Chairman and Executive Director Member b) Terms of Reference The Shareholders /Investor s Grievance Committee particularly ensures the efficient Transfer / Transmission of Shares and Debentures, Redressal of Shareholder and Investor Complaints, Issue of Duplicate / Split / Consolidated Share Certificates and such other matters as entrusted to it pursuant to the Clause 49 of the Listing Agreement approved at the Board Meeting of the Company dated January 13, c) Meetings of the Committee held during the year There have been No Meetings of the Shareholders /Investor s Grievance Committee during the year as consequent upon the Demerger of the Retail Division of Bang Overseas Limited into the Company, the Equity Shares of the Company got listed on the Stock Exchanges on January 30, d) Complaints Details of Investor Complaints received during the financial year ended 31st March 2012 are as follows: Nature of Complaint Received Beginning of year Received During the year Resolved During the year Pending at the end of year Application lodged for IPO Nonreceipt of Electronic credit Nonreceipt of Refund Order TOTAL Second Annual Report

22 5. REMUNERATION COMMITTEE a) Composition: The Remuneration Committee of the Board consists of the following Directors: Sr. no. Name Designation 1 Dr. Mithilesh Kumar Sinha, NonExecutive Independent Director Chairman 2 Mr. Vijay Ajgaonkar, NonExecutive Independent Director Member 3 Mr. Viswanath Cheruvu, NonExecutive Independent Director Member b) Terms of Reference The general objective of the Remuneration Committee is to determine and agree with the Board the framework or the broad policy for the remuneration for the Senior Management Personnel including the Managing Director & the Whole Time Director. It also measures the suitability of the performance measurement criteria for the Senior Management Personnel and also reviews the notice periods for Executive Directors employment contracts, administer employee benefit and incentive plans and administer stock option and other equitybased plans, etc. c) Meeting There were no Meetings of the Remuneration Committee held during the year d) Remuneration During the financial year , due to the Demerger, None of the Directors agreed to take any Remuneration, Salary, Perquisites, Sitting Fees from the Company. e) Remuneration Policy The Remuneration Policy approved by the Board of Directors, inter alia, provides that the Salary & Commission to Executive Directors and Sitting Fee & Commission to Non Executive Directors, if any, should not exceed the limits as prescribed under the Companies Act, No Sitting Fee to be paid to Executive Directors for attending the Board / Committee Meetings. 6. GENERAL BODY MEETINGS a)date, time and venue for the last three Annual General Meetings (AGMs) Financial year Date Time Venue A.M. 50, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel (W), Mumbai Second Annual Report

23 b) Details of the Special Resolutions passed in the previous three AGMs Special Resolutions AGM held on August 23, 2011: 1. Appointment of Mr. Brijgopal Bang as the Managing Director of the Company from 23/08/2011 to 22/08/2016 & fix his remuneration for Rs. 60,000/ per month on the terms and conditions as approved by the members. 2. Approval of borrowing powers under section 293 (1) (d) of the Companies Act, Approval under section 293 (1) (a) of the Companies Act, Approval for intercorporate loans and investments under section 372 (A) of the Companies Act, 1956 Resolution /s passed through Postal Ballot (b) Postal Ballot No resolutions were required to be passed through Postal Ballot last year. Presently, there are no proposals to pass any Resolution by means of Postal Ballot. 7. DISCLOSURES (i) Disclosure regarding materially significant related party transaction: The Register of Contracts containing the transactions in which Directors are interested is placed before the Board regularly for its approval. There are no materially significant related party transactions which have potential conflict with the interest of the Company at large. Details on material significant relatedparty transactions are given in the appended financial statement under Notes to the Accounts annexed to the Financial Statements. (ii) Details of Penalties or Strictures No Penalties or Strictures have been imposed on the Company by the Stock Exchanges or SEBI or any other Statutory Authority on any matter related to Capital Market. iii) WhistleBlower policy The Company has not yet framed any Whistle Blower Policy but All the Employees of the Company have been granted access to the Audit Committee. iv) Disclosure of Accounting Treatment in the preparation of the financial statements The Company has followed all applicable Accounting Standards issued by the Institute of the Chartered Accountants of India. v) Disclosure by Management to the Board All Disclosures relating to Financial and Commercial Transactions where Directors may have a potential Interest are provided to the Board, and the Interested Directors do not participate in the discussion nor do they vote on such matters. 21 Second Annual Report

24 vi) Disclosure of Risk Management Though Identification and Evaluation of Business Risks is a continuous process but early risk identification and appropriate countermeasures have enabled the Company to reconcile creativity with industry. A Comprehensive Risk Warning System incorporates all the key aspects of Risk Management which enables the Company to identify and manage strategic and operational risks at the Individual, Management and Board levels. The detailed Risk Assessment and Minimization Process undertaken by the Company has been given in other section of this Report. vii) Company s Insider Trading Policy As per the Company s Insider Trading Policy and it s Code of Conduct, it observes a quiet period from seven days prior to the event leading to / generating price sensitive information till 24 hours after the publication of such price sensitive information. The Company may also announce quiet period during and after the occurrence of certain events as mentioned in the Insider Trading Policy and the Code of Conduct of the Company. The Company is strictly monitoring its Insider Trading Policy. The Company has also fulfilled a nonmandatory requirement as prescribed in Annexure I D to Clause 49 of the Listing Agreement with the Stock Exchanges, related to Remuneration Committee /Compensation Committee. viii) Reconciliation of Share Capital Audit Report In line with the requirements stipulated by SEBI, Reconciliation of Share Capital Audit is carried out on a quarterly basis by a Practicing Company Secretary to confirm that the aggregate number of equity shares of the Company held in National Securities Depository Limited (NSDL), Central Depository Services (India) Limited (CDSL) and in physical form tally with the total number of issued, paidup, listed and admitted capital of the Company. 8. MEANS OF COMMUNICATION Quarterly results: Quarterly / annual financial results are regularly submitted to the Stock Exchanges in accordance with the listing Agreement entered into with the Stock Exchanges and published in prominent English daily news paper and in a regional language newspaper.viz. Business Standard and Mumbai Lakshadeep, Mumbai edition. Website: TSIL has its website and all vital information relating to the Company and its Performance, including Quarterly Results, Shareholding Patterns, Annual Reports, Code of Conduct and Official News Releases is put on the website for the benefit of the public at large. The Company s Website Address is No formal presentations were made to the institutional investors and analysts during the year under review. Management Discussion and Analysis Report forms a part of this Annual Report. 22 Second Annual Report

25 9. ADDITIONAL SHAREHOLDER INFORMATION a) Annual General Meeting Date Venue : Saturday, 29th September, 2012 at 10:00 A.M. : Garware Club House, Wankhede Stadium, Banquet Hall, 2nd Floor, D Road, Churchgate, Mumbai b) Financial Calendar (201112) First Quarterly Results Up to 14th August, 2011 Second Quarterly Results Up to 14th November, 2011 Third Quarterly Results Up to 14th February, 2012 Fourth Quarterly Results Up to 14th May, 2012 c) Book Closure The Register of Members and the Share Transfer Books of the Company will remain closed from Thursday, 27 September, 2012 to Saturday, 29 September, 2012 (both days inclusive). d) Dividend payment date Not applicable e) Listing At present the Company s Equity Shares are listed at National Stock Exchange of India Limited and Bombay Stock Exchange Limited and the Company has paid the Listing fees to the above Exchanges for the year Stock Codes BSE: (Scrip Code) TSIL (Scrip ID) NSE : THOMASCOTT (Symbol) Demat ISIN No. for NSDL and CDSL INE480M Second Annual Report

26 f) Stock Data The Table below gives the Monthly High and Low Prices and Volumes of the Company s Equity Shares at Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Mumbai for the year : THOMAS SCOTT (INDIA) LIMITED BSE SENSEX High Low Close No. of Shares High Low Close traded Month (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) Apr 11 Nil Nil Nil Nil 19, , , May 11 Nil Nil Nil Nil 19, , , June 11 Nil Nil Nil Nil 18, , , July 11 Nil Nil Nil Nil 19, , , Aug 11 Nil Nil Nil Nil 18, , , Sept 11 Nil Nil Nil Nil 17, , , Oct 11 Nil Nil Nil Nil 17, , , Nov 11 Nil Nil Nil Nil 17, , , Dec 11 Nil Nil Nil Nil 17, , , Jan ,275 17, , , Feb ,267 18, , , Mar ,185 18, , , Second Annual Report