1.  a) Pursuant to the Scheme of Arrangement as approved by the High
 Court of Delhi vide its Order dated April 16, 1990 under sections 391 /
 394 of the Companies Act, 1956, assets and liabilities relating to
 certain units, and certain reserves of the undivided DCM Limited were
 transferred /allocated to the Company w.e.f.  April 1, 1990, being the
 effective date. The excess of net assets acquired over the share
 capital and reserves had been transferred to the share premium account.
 
 b) There are various issues relating to sales tax, income-tax,
 interest, etc. arisen / arising out of the reorganisation arrangement
 which will be settled and accounted for in terms of the Scheme of
 Arrangement of DCM Limited as and when the liabilities / benefits are
 fnally determined. The ultimate effect of these is not ascertainable at
 this stage.
 
                                                 As at       As at
 
                                            31.03.2011  31.03.2010
 
 2.  Contingent liabilities not 
 provided for:- (Rs. lacs) (Rs. lacs) Income 
 tax matters*                                   193.40      210.22 
 
 Excise / Service tax / Customs Duty
 matters*                                       928.61      698.39
 
 Claims against the Company not 
 acknowledged as debts (excluding claims 
 by employees, where amount is not 
 ascertainable)*                               1088.51     1000.34
 
 Bills discounted                              1422.50     2540.73
 
 * Matters are subject to legal proceedings in the ordinary course of
 business. The legal proceedings, when ultimately concluded will not, in
 the opinion of the management, have a material effect on the results of
 the operations or financial position.
 
 3.  Research and development expenses amounting to Rs. 29.65 lacs
 (2009-10 - Rs. 33.53 lacs) have been charged to the respective revenue
 accounts. Capital expenditure relating to research and development
 amounting to Rs. 14.65 lacs (2009-10 – Nil) has been included in fixed
 assets.
 
 4.  Parties covered under The Micro, Small and Medium Enterprise
 Development Act, 2006 (MSMED Act, 2006) have been identifed on the
 basis of confrmation received.
 
 Based upon the information available, the balance due to the Micro and
 Small Enterprises as Defined under the MSMED Act, 2006 is Rs. 1.93 lacs
 (2009-10 Nil). Further no interest during the year has been paid or
 payable under the terms of the MSMED Act, 2006.
 
 5.  Segment reporting
 
 A.  Business segments
 
 Based on the guiding principles given in Accounting Standard (AS) 17
 Segment Reporting as notifed under the Companies (Accounting
 Standards) Rules, 2006, the Companys business segments are Sugar
 (comprising sugar, power and molasses based alcohols), Industrial
 Fibres and related products (comprising rayon, synthetic yarn, cord,
 fabric etc.) and Chemicals (comprising Organics & fne Chemicals).
 
 B.  Geographical segments
 
 The Companys geographical segments are Domestic and Overseas, by
 location of customers.
 
 C.  Segment accounting policies
 
 In addition to the signifcant accounting policies applicable to the
 segments as set out in note 1 of schedule 11 Notes to the Accounts,
 the accounting policies in relation to segment accounting are as under
 :-
 
 i) Segment assets and liabilities
 
 Segment assets include all operating assets used by a segment and
 consist principally of operating cash, debtors, inventories and fixed
 assets, net of allowances and provisions which are reported as direct
 offsets in the balance sheet. Segment liabilities include all operating
 liabilities and consist principally of creditors and accrued
 liabilities. Segment assets and liabilities do not include investments,
 share capital, reserves and surplus, loan funds, income tax- current
 and deferred and certain other assets and liabilities not allocable to
 the segments on a reasonable basis. While most of the
 assets/liabilities can be directly attributed to individual segments,
 the carrying amount of certain assets/liabilities to two or more
 segments are allocated to the segments on a reasonable basis.
 
 ii) Segment revenue and expenses
 
 Joint revenue and expenses of segments are allocated amongst them on a
 reasonable basis. All other segment revenue and expenses are directly
 attributable to the segment.
 
 iii) Unallocated expenses
 
 Unallocated expenses represent general administrative expenses,
 head-office expenses and other expenses that arise at the Company level
 and relate to the Company as a whole. As such, these expenses have not
 been considered in arriving at the segment results.
 
 iv) Inter segment sales
 
 Inter segment sales between operating segments are accounted for at
 market price. These transactions are eliminated in consolidation.
 
 6. Related party disclosures under Accounting Standard (AS)18 A.
 Names of related party and nature of related party relationship
 
 Subsidiary : Daurala Foods & Beverages Pvt. Ltd. (DFBPL)
 
 Associate : DCM Hyundai Ltd. (DHL)
 
 Key management personnel : 
 
 Mr. Tilak Dhar, 
 
 Mr. Alok B. Shriram, 
 
 Mr.  D.C. Mittal, 
 
 Mr. Madhav B. Shriram, 
 
 Mr. G. Kumar (upto 31/01/11) and
 Mr. Anil Gujral (w.e.f. 1/02/11).
 
 Relatives/HUF of key management personnel : Mrs. Karuna Shriram, Mrs.
 Kiran Mittal, Mr. Akshay Dhar and M/s. Bansi Dhar & Sons - HUF (BDS).
 
 Others (Enterprise over which key management personnel or their
 relatives are able to exercise signifcant infuence) : Bantam
 Enterprises Pvt. Ltd. (BEPL) and H.R. Travels Pvt. Ltd. (HRTPL).
 
 11. Disclosures in respect of assets taken on lease under Accounting
 Standard (AS) 19 Leases.
 
 A.  Finance Lease
 
 i) For motor vehicles and plant and machinery taken under fnance lease
 arrangements, the ownership will be transferred to the Company at the
 end of the fnance lease term.
 
 B.  Operating Lease
 
 i) The Company generally enters into cancellable operating leases for
 office premises and residence of its employees, normally renewable on
 expiry.
 
 ii) Lease rent charged to the Profit and loss account relating to
 operating leases entered or renewed after April 1, 2001 are Rs. 419.51
 lacs (2009-10 - Rs. 401.34 lacs).
 
 7. A Petition fled by a shareholder before the Honble Company Law
 Board under Section 397 / 398 of the Companies Act in November 2007,
 challenging the preferential issue of equity warrants by the Company,
 is pending. The same shareholder also fled a Civil Suit challenging
 some of the items in the Agenda for the Annual General Meeting (AGM)
 held on 25.9.2008 before the Honble Delhi High Court. The said Suit
 was dismissed by the Honble Delhi High Court by its Order dated
 25.8.2009. Subsequently, the shareholder fled an appeal against the
 Order before the Division Bench. The Division Bench by its Order dated
 25.5.2010 declined to interfere with the Order of the learned Single
 Judge
 
 8.  The Company has accounted for cane purchases for crushing season
 2007-08 at a price of Rs. 110 per qtl in terms of the interim Order
 passed by the Honble Allahabad High Court. Subsequently the Honble
 High Court passed fnal Order directing sugar mills to pay State Advised
 Price at Rs 125 per qtl. Appeal against the Order of the Honble High
 Court has been fled with the Honble Supreme Court which has directed
 to pay Rs. 110 per qtl as interim arrangement. Necessary adjustments,
 if any, will be made in accordance with the fnal Order of the Honble
 Supreme Court
 
 9.  Employee benefits
 
 a) Defined contribution plans
 
 Rs. 477.80 lacs (previous year Rs. 397.72 lacs) for provident fund
 contribution and Rs. 166.58 lacs (previous year Rs. 155.91 lacs) for
 superannuation contribution have been charged to the Profit and loss
 account. The contributions towards these schemes are at rates specifed
 in the rules of the schemes. In case of Provident Fund administered
 through a trust, shortfall if any, shall be made good by the Company
 
 b) Defined benefit plans
 
 i) Liability for gratuity, Privilege leaves and Medical leaves is
 determined on actuarial basis. Gratuity liability is provided to the
 extent not covered by the funds available in the gratuity fund
 
 ii) Gratuity Scheme provides for a lump sum payment to vested employees
 at retirement, death while in employment or on termination of
 employment. Vesting occurs upon completion of fve years of service,
 except death while in employment
 
 10.  The Company had impaired certain plant & machinery in the previous
 year based on net realizable value of such assets determined by an
 independent valuer. The impairment loss was recognised at Rs. 127.14
 lacs out of which Rs. 27.99 lacs was adjusted from revaluation reserve
 being revaluation amount included in carrying value of these assets and
 the resultant loss (Gross - Rs. 99.15 lacs, net of deferred taxes Rs.
 66.21 lacs) was included in Schedule 9- Manufacturing and Other
 Expenses
 
 11.  Previous year figures have been regrouped / recast, wherever
 necessary
 
 12.  Schedules 1 to 11 and the statement of additional information form
 an integral part of the balance sheet and Profit and loss account.