1.  Capital Commitments
 
 Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for Rs. 48,013,347 (2010-Rs. 82,869,014)
 
 2.  Contingent Liabilities
 
 Contingent Liabilities not provided for in respect of:
 
 (a) Income Tax matters Rs. 32,665,150 (2010 - Rs. 30,986,350) pending
 in appeals.
 
 (b) Disputed Sales Tax, Excise Duties, etc. Rs.288,746,552 (2010 - Rs.
 161,399,243) for which appeals before the relevant authorities are
 pending disposal.
 
 (c) In respect of Bills Discounted Rs. NIL (2010-Rs.2,505,254)
 
 The future cash outflow on account of above cannot be determined at
 this stage.
 
 3.  Secured Loans
 
 The Company''s borrowings from the Consortium of Banks are secured by:
 
 (a) Mortgage of immovable properties of industrial land at Plot 633 &
 634 at Vatwa Industrial Estate at Ahmedabad; Transport Depot Road,
 Kolkata; Chandivali Farm, Mumbai; Plot C-55ANoida Phase II, U.P.
 (together with all structures thereon) and also by deposit of title
 deeds/share certificates in respect of the residential flats at Mumbai,
 Kolkata, Chennai and New Delhi.
 
 (b) Hypothecation of movable properties of the Company, including Plant
 and Machinery, Spares, Stores, Tools and Accessories both present and
 future;
 
 (c) Hypothecation of Stock- in- Trade of the Company both present and
 future; and
 
 (d) Hypothecation of Book Debts of the Company both present and future.
 
 The consortium of banks shares the relevant securities on pari passu
 basis. It is, however, agreed that the banks will release the first
 charge in case the Company borrows in future against securities
 mentioned in Item 3(a) above.
 
 4.  Assets acquired under Operating Lease
 
 (a) The Company''s significant leasing arrangements are in respect of
 operating leases tor premises (like residential property, office
 premises, stores, godowns etc). These leasing arrangements, which are
 not non- cancelable, range between 11 months to 4 years generally, or
 longer, and are usually renewable by mutual consent on mutually
 agreeable terms. The aggregate lease rentals payable are charged as
 Rent under Schedule 16.
 
 (b) The Company acquired certain assets under operating lease, which
 are non-cancelable for a period of 4 years with option to renew the
 same for a further period at a minimum rent. Details of lease payments
 outstanding as at 31.12.2011 and amount paid during the year are given
 below :
 
 5.  Provision for Taxation
 
 Provision for taxation made in these accounts is based on the profit
 for the current financial period including the results of the
 operations for the period from 1st January 2011 to 31st March 2011
 forming part of the Assessment Year 2011-2012. Ultimate liability for
 taxation for the Assessment Year 2012-2013 will be determined on the
 basis of the profit for the last nine months of the current financial
 period together with that of subsequent three months upto 31st March
 2012 as one composite income.
 
 * Included in Serial No.5 above is Rs.4,528,329 (2010 - Rs.4,140,921)
 being interest on amount outstanding as at the beginning of the
 Accounting Year.
 
 * Under the Industrial Policy Statement dated 24th July 1991 and the
 Notification issued thereunder, no licensing is required for the
 Company''s products.
 
 ** As certified by the Management.
 
 Figures within brackets related to previous year.
 
 * The entire processing of Lamination Adhesive of 1,782 M.T. (2010- 1,998
 M.T.) is done on behalf of the Company by Valspar (India) Coatings
 Corporation Pvt. Ltd. (erstwhile DIC Coatings India Limited), as a job
 worker pursuant to an agreement with effect from May 2006.
 
 Figures within brackets relate to previous year.
 
 Figures within brackets relate to previous year.
 
 (1) Purchase from Fellow Subsidiary includes purchase from Hartman
 Drukfarben GMBH Rs.51,896,190 (2010 - Rs.56,091,240), Dequing DIC
 Synthetic Resins Ltd. 39,337,204 (2010 - Rs. Nil) and Nantong DIC Color
 Co. Ltd. Rs.70,216,906 (2010-Rs.89,245,815).
 
 (2) Sale to Fellow Subsidiary includes sales to DIC Australia Pty Ltd.
 Rs.29,263,264 (2010 - Rs.20,229,972), DIC Lanka (Pvt) Ltd.
 Rs.12,548,826 (2010 - Rs.8,851,080), DIC Pakistan Rs. Nil (2010 -
 Rs.13,406.723) and Sun Chemicals Zao Rs.7,673,452 (2010-Rs.Nil)
 
 (3) Rendering services to Fellow Subsidiary includes services rendered
 to DIC Fine Chemicals Pvt. Ltd. Rs. Nil (2010 - Rs.2,500,000), Sun
 Chemicals NVRs.231,791
 (2010-Rs.Nil)and DIC(Malayasia)SdnBhd.Rs.l34,554(2010-Rs.557,983)
 
 (4) Expenses incurred by the Company on behalf of the Fellow Subsidiary
 relates to DIC Fine Chemicals Pvt. Ltd.
 
 Note:
 
 1.  The Company has considered business segment as the primary segment
 for disclosure. The components of this business segment are Printing
 Inks and Adhesives.
 
 2.  The Segment wise revenue, results, assets and liabilities relate to
 the respective amounts directly identifiable to each of the segments.
 Unallocable income/expenditure refers to income/expenditure incurred on
 common services at corporate level.
 
 6. Retirement Benefit
 
 The Company operates Defined Contribution Schemes like Provident Fund
 and Superannuation Schemes. Contributions to Provident Funds are made
 by the Company, based on current salaries, to recognized funds
 maintained by the Company. In case of Provident Fund Schemes,
 contributions are also made by the employees. The interest rate payable
 to the members of the trust are not lower than the statutory rate of
 interest declared by the Central Government and shortfall if any is
 made good by the Company. Implication of Guidance Note 29 issued by the
 Institute of Actuaries of India during the year, on the valuation of
 interest rate guarantee on Exempt Provident Fund under Accounting
 Standard 15 (Revised), is currently being examined by the Company and
 not considered for the purpose of these accounts, financial impact not
 being material.  Contribution to Superannuation Schemes are applicable
 for certain categories of employees and the contribution by the Company
 is invested with Insurance Companies and charges to Profit & Loss
 Account.
 
 Defined Pension benefits offer specified benefits to certain categories
 of employees on retirement. The Company has discontinued the Defined
 Pension Benefit Scheme with effect from 1.5.2009 and all the employees
 who were erstwhile member of the Defined Pension Benefit Scheme has
 been brought under the Defined Contribution Scheme for benefit
 provisions under the Pension Plan. The present value of benefit
 obligation on 31.12.2011 is calculated by discounting the present value
 of crystalized pension as at 30.4.2009 by an independent actuary in
 compliance with Accounting Standard 15 (Revised 2005) on Employees
 Benefits.
 
 The Company also operates defined benefit schemes like retirement,
 gratuity and post retirement benefits. The Company has its own
 recognized Gratuity Fund and all contribution are given to the Fund for
 investment. Post retirement benefit is given in the form of a fixed
 amount to certain category of employees on resignation/retirement
 subject to a minimum service period. However, liability in the accounts
 have been provided as per actuarial valuation in respect of the above.
 
 The Company also pays the amount due on accumulated leave on
 retirement. The liability under this Scheme is also actuarially valued
 and provided for in the Accounts.
 
 The estimates of future salary increases considered in the actuarial
 valuation takes into account factors like inflation, future salary
 increases, seniority, supply and demand in the employment market etc.
 The expected return on Plan Assets is based on actuarial expectation of
 the average long term rate of return expected on investments of the
 funds during the estimated term of the obligations.
 
 Amount recognized as an expense:
 
 Contribution to Provident and other Funds in Schedule 16 includes
 contribution on account of Gratuity Rs.70,05,000 (2010 - Rs.30,272,000)
 and contribution on account of Pension Plan Rs.4,386,000 (Cr.) [2010
 -Rs. 14,211,000 (Cr.)].
 
 Contribution to Provident and other Funds in Schedule 16 includes
 contribution to Defined Contribution Plans like Provident and
 Superannuation Fund amounting to Rs. 40,341,486 (2010 - Rs.
 35,960,096).
 
 7. Previous years, figures have been regrouped/rearranged wherever
 considered necessary.