[Rs in Lakhs]
 
                                        2010-2011          2009-2010
 
 1.  Contingent Liabilities.
 
 (a) The Company has given corporate 
 guarantees aggregating to Rs484.25
 lakhs (Previous Year Rs661.90 lakhs) 
 to Housing Development Finance
 Corporation Limited (HDFC) for 
 housing loans extended to employees.
 Total loans outstanding under the 
 arrangement, are :                      113.27              142.65
 
 (b) (i) Estimated amount of contracts 
 on Capital Account remaining to
 be executed and not provided for are  3,258.08            8,857.40
 
 (ii) Amount for Leasehold Land at 
 Dahej.  Not ascertainable Not
 ascertainable
 
 (c) Claims from various parties d
 isputed but not acknowledged 
 as debt :                             6,829.43            6,616.18
 
 (d) Guarantees given by the 
 Company''s bankers for various 
 purposes are :                        4,529.88            4,065.31
 
 (e) Disputed Purchase tax 
 liability (Net of provision 
 made).                               20,947.88           21,185.69
 
 2. The Sundry Debtors include overdue outstanding from various parties
 aggregating to Rs1,473.30 lakhs, (Previous Year Rs1,555.94 lakhs), for
 which the Company has taken legal steps for recovery of the outstanding
 dues and the management is hopeful of the recovery. However, cumulative
 provision of Rs1,083.84 lakhs (Previous Year Rs1,076.27 lakhs) exists for
 such doubtful debts.
 
 3.  DEFERRED TAX :
 
 (i) During the year there is a reduction in Deferred Tax Liability to
 the extent of Rs307.09 lakhs, consequently this amount has been written
 back and credited to profit and loss account (Previous Year liability
 Rs3,848.14 lakhs) was provided as deferred tax liability. The
 accumulated deferred tax liability amounted to Rs31,449.94 lakhs as on
 31.03.2011 (Previous YearRs 31,757.03 lakhs).
 
 4. Pursuant to the notification dated 8th February, 2011 issued by
 Ministry of Corporate Affairs, Government of India, the Company has
 availed-the exemption from disclosure of paragraph 3(i) (a) and 3 (ii)
 (a) of part fl of Schedule VI of Companies Act, 1956. Hence, the
 Company has availed the exemption by not disclosing quantitative
 details for those goods which form less than ten percent of the total
 value of turnover and raw material consumption.
 
 5. Under Clean Development Mechanism, three projects of the Company
 have been registered with UNFCCC. The Company in the meantime has put
 up three Wind Mill projects for which the process of registration has
 been started. It has further identified small energy saving projects
 and expects to start the process of registration for these projects
 also.
 
 6. In line with the requirement of AS-30 ( Financial Instruments :
 Recognition and Measurement ) to provide for mark-to- market (MTM)
 losses on open positions in derivative contracts as on the date of the
 Balance Sheet, the Company had made a provision of Rs1,356.71 lakhs till
 previous year for such losses in respect of its open positions in Cross
 Currency Swap transactions. During the year, the Company has discharged
 the liabilities in full on remittance of Rs 1,324.02 lakhs towards the
 said transaction and the excess provision of Rs 32.69 lakhs written back
 is shown under the head Excess Provision of Exrjenses no lonaer
 required (Net) in Schedule 13 - Other Income.
 
 During the year, an income of Rs18.77 lakhs (Previous Year Rs 50.00
 lakhs) has been recognised on realisation basis towards coupon
 settlement of the Cross Currency Swap transaction and is shown in
 Schedule 13 - Other Income.
 
 7.  The scheme of remission of Value Added Tax in accordance with the
 provisions of Value Added Tax Act, 2003 has expired during financial
 year 2009-10, therefore, the amount eligible for remission benefit at
 Dahej Complex, during the financial year 2010-11 is NIL (Previous Year
 Rs1,357.63 lakhs).
 
 8.  Disclosure of Sundry Creditors under Current Liabilities is based
 on the information available with the Company regarding the status of
 the suppliers as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006. Amount overdue as on 31st March, 2011, to
 Micro, Small and Medium Enterprises on account of principal amount with
 interest in aggregate is RsNIL(Previous Year Rs Nil).
 
 9.  The Company''s operations fall under single segment namely
 Chemicals, hence no separate disclosure of segment reporting is
 required to be made as required under AS-17 of ICAI.
 
 10.  Employee Benefits AS -15 (Revised) :
 
 (i) Defined Contribution Plans :
 
 An amount of Rs 490.12 lakhs (Previous Year Rs 468.13 lakhs) contributed
 to employees superannuation trust is recognised as an expense and
 included in Staff Expenses (Schedule 17) in the Profit & Loss
 Account.
 
 (v) Basis used to determine expected rate of return on assets :
 
 The expected return on plan assets is based on market expectation, at
 the beginning of the period, for returns over the entire life of the
 related obligation. The Gratuity Scheme is invested in Group
 Gratuity-cum-life Assurance cash accumulation policy offered by Life
 Insurance Corporation (LIC) of India. The investment return earned on
 the policy comprises bonuses declared by LIC having regard to LIC''s
 investment earnings. The information on the allocation of the fund into
 major assets classes and expected return on each major class are not
 readily available. We understand that LIC''s overall portfolio of assets
 is well diversified as such, the long term return on the policy is
 expected to be higher than the rate of return on Central Government
 Bonds. Historically too, the returns declared by LIC on such policies
 have been higher than Government bond yields. As such, the expected
 return on assets assumption is taken by adding a margin on the current
 market yield on the Central Government bonds (of term consistent with
 the terms of liabilities).
 
 11. The Company has paid Rs1,000 lakhs in FY 2009-10 and and further
 Rs1,000 lakhs FY 2010-11 i.e. total Rs 2,000 lakhs, as Share Application
 Money for allotment of 40,00,000 fully paid-up equity shares of Rs10/-
 each at a premium of Rs40/- per share in GSPC Gas Company Ltd. Allotment
 is pending as at 31s'' March, 2011.
 
 The Company has paid Rs210 lakhs in FY 2009-10 and further X 72 Lakhs in
 FY 2010-11 i.e. total Rs282 lakhs as advance Share Application Money to
 Dow-GACL Sol Venture Ltd. (DGSL). Allotment is pending as at 31st
 March, 2011.  The Company held 23,740 fully paid-up equity shares of
 Rs10/- each of Housing Development Finance Corporation Ltd. (HDFC).  The
 said Equity Shares were sub-divided from Rs 10/- each to 1,18,700 Equity
 Shares of Rs 21- each in August, 2010.
 
 12.  Related Party Information :
 
 (1) List of Related Parties :
 
 (a) Where control exists    : Joint Venture Parties
 
                               Gujarat Alkalies And Chemicals Ltd. 
                               (50%); and 
 
                               Dow-Europe GmbH (50%)
 
 (b) Joint Venture           : Dow GACL Sol Venture Ltd.
 
 (c) Key Management Personnel: Dr. Guruprasad Mohapatra, IAS, Managing
                               Director
 
 (d) Relatives of key management personnel and their enterprises, where
 transactions have taken place : Nil
 
 The Company''s interest in a jointly controlled entity is reported as
 Long Term Investment in Schedule 6 and stated at cost. Dow GACL
 SolVenture Ltd. has not commenced operations and has incurred
 pre-operative preliminary expenses to the tune of Rs13.66 lakhs
 (Previous Year Rs13.63 lakhs) funded by equity contribution / advances
 from the Company.
 
 13.  (a) Corresponding figures of the previous year have been regrouped
 to make them comparable with this year''s figures, wherever necessary.
 
 (b) Balances shown under Secured/Unsecured Loan, Advances, Deposits,
 Debtors, Creditors, Loans and Materials with others, etc. are subject
 to confirmation / reconciliation, if any. The management does not
 expect any material difference affecting the current year''s financial
 statements.
 
 14. Excise Duty :
 
 As required under Accounting Standard AS-9 on ''Revenue
 Recognition'' issued by The Institute of Chartered Accountants of India:
 
 (i) Gross Sales is reduced by the excise duty charged to arrive at net
 sales.
 
 (ii) The difference of excise duty payable on opening and closing stock
 of finished goods is reflected as a separate expenditure item in the
 Profit and Loss Account.
 
 (iii) The difference in excise duty recovered and paid, if any, is
 shown as selling expenses under the head of Administration, General and
 Marketing Expenses.
 
 15. a) Capacity, Production and Stocks :
 
 NOTES:
 
 (i) N.A. - Delicensed vide notification No. 477 (E) dated 27th July
 1991 and press Note No. 1 (1998 series) dated 8th June, 1998.
 
 (ii) The Installed Capacities are as certified by the Management.
 
 (A) This represents 4,08,568 M.T.of Caustic Soda Lye and 23,207 M.T of
 Caustic Potash Lye.
 
 (1) Out of 4,08,568 M.T Actual Production of Caustic Soda Lye, 1,87,527
 M.T consumed for manufacturing of Caustic Flakes/Prills and 7,476 M.T.
 consumed for production of Sodium Hypochlorite.
 
 (2) Out of 23,207 M.T. Actual Production of Caustic Potash Lye, 10,657
 M.T. consumed for manufacturing of Caustic Potash Flakes and 10,034
 M.T. consumed for manufacturing of Potassium Carbonate.
 
 (B) This represents 1,87,515 M.T. of Caustic Soda Flakes/Prills and
 11,841 M.T. of Caustic Potash Flakes.
 
 (C) Out of 3,82,713 M.T. Actual Production of Chlorine Gas, 2,68,503
 M.T. consumed for manufacturing of Liquid Chlorine, Hydrochloric Acid,
 Sodium Hypochlorite & Anhydrous Aluminium Chloride.
 
 (D) Quantity and value of Chlorine includes value of stock of Chlorine
 with Job work Parties (CPW & ALC).
 
 (E) For Baroda, Production from both Caustic Soda Plant and
 Chloromethanes Plant is included.
 
 (F) Out of 12,09,53,920 NM3 Actual production of Hydrogen Gas,
 5,11,34,510 NM3 consumed for manufacturing of Caustic Soda Flakes &
 2,48,83,223 NM3 consumed for HCL for Baroda and Dahej Complex.
 
 (G) Aluminium Chloride & Chlorinated Parafin Wax are manufactured on
 job work basis.
 
 (H) Calcium Chloride Powder plant has commenced commercial production
 at Baroda from 20th January, 2011.
 
 (I) Stable Bleaching Powder plant has commenced commercial production
 at Dahej from 2nd March, 2011.