1.  Demerger of Explosives Undertaking of the Company
 
 (a) Pursuant to Scheme of Arrangement under Sections 391 to 394 of the
 Companies Act, 1956 between the Company and IDL Explosives Limited (a
 wholly owned subsidiary) and their respective shareholders, which was
 sanctioned by the Honourable High Court of Andhra Pradesh by its Order
 dated 05th May, 2011, the assets and liabilities of the Explosives
 Undertaking excluding those relating to manufacturing operations at
 Kukatpally, Hyderabad and certain assets located at Maharastra and
 assets and liabilities pertaining to litigations on taxes and duties in
 favour or against Explosives Undertaking of the Company were
 transferred to and vested with IDL Explosives Ltd., with effect from
 1st October, 2010, the appointed date. The Scheme has accordingly been
 given effect to in these financial statements in accordance with the
 Sanctioned High Court Order.
 
 (b) In terms of the Scheme, 2,49,000 Series - A 10% redeemable
 Preference Shares of Rs. 100 each at a premium of Rs.  900 per share of
 IDL Explosives Ltd., aggregating to Rs. 2490 Lakhs, were issued to the
 Company towards Rs.  2255.36 Lakhs representing the excess of assets
 over liabilities of the Explosives Undertaking transferred to IDL
 Explosives Limited. Pending allotment, an amount of Rs. 2490 Lakhs has
 been included in Investments, Schedule 6 as Shares in IDL Explosives
 Ltd., pending allotment. The resultant surplus on transfer of the
 aforesaid Explosives undertaking amounting to Rs. 234.64 Lakhs has been
 shown under Exceptional item in Profit and Loss Account.
 
 (c) Consequent to the vesting of the Explosives undertaking of the
 Company in terms of the Scheme, the financial statements of the Company
 for the year ended 31st March 2011, do not include the operations of
 Explosives undertaking for the period of six months i.e., from 1st
 October 2010 to 31st March 2011, and are therefore strictly not
 comparable with figures of previous year ended 31st March 2010.
 
 2.  Contingent liabilities
 
                                              As at            As at
 
                                    31st March 2011  31st March 2010
 
                                       Rupees Lakhs     Rupees Lakhs
 
 (a) Corporate Guarantees *                  644.70           397.80
 
 (b) Claims against the Company not 
 acknowledged as debts
 
 (i) Income Tax Demands                     1758.36           923.10
 
 (ii) Wealth Tax                             196.66            51.97
 
 (iii) Sales Tax Demands                    2279.11          2115.53
 
 (iv) Excise Demands                         763.62          1305.65
 
 (v) Service Tax                               4.49             4.49
 
 (vi) Additional Demands towards 
 cost of land                                  3.81             3.81
 
 (vii) Claims of workmen/ex-employees         76.04            75.50
 
 (viii) Other Matters                         93.26           108.67
 
 (ix) Performance and Other Guarantees       178.62           178.02
 
 (c) In terms of the agreement between IDL Speciality Chemicals Limited,
 Biocon Limited, and the Company for the sale of Active Pharma
 Ingredients (API) business to Biocon Limited, the Company would be
 responsible for guaranteeing to Biocon Limited claims upto a period of
 one year after the closing date i.e., 30th November, 2009 to the extent
 of purchase price of Rs.2200 Lakhs. The Company has not received any
 claims.
 
 * The Company has given a Corporate Guarantee of 100 Million Taka to
 South East Bank Ltd., on behalf of Gulf Oil Bangladesh Ltd., a
 subsidiary of Gulf Oil Corporation Ltd. The amount outstanding as on
 31st March 2011 is 4.67 Million Taka - Rs. 29.71 Lakhs (31st March
 2010, 21.51 Million Taka - Rs. 80.92 Lakhs)
 
 3.  Secured Loans
 
 (a) Cash Credit facilities including foreign currency demand loan from
 Bank of Bahrain & Kuwait B.S.C and working capital loan & corporate
 loan from consortium banks is secured by hypothecation of all current
 assets of the Company including raw materials, finished goods,
 stocks-in-process, stores and spares (not relating to plant &
 machinery) and present and future book debts of the Company ranking
 pari-passu and collateral security by (i) first pari passu charge by
 way of equitable mortgage on land owned by the Company admeasuring
 acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari
 passu charge on manufacturing buildings, plant and machinery charged to
 other term lenders.
 
 (b) (i) Term loan for Capital Expenditure from State Bank of India is
 secured by first charge on the fixed assets created
 out of the loan, ranking pari-passu with other term lenders and
 collateral security by first pari passu charge by way of equitable
 mortgage on land owned by the Company admeasuring acres 115.25 situated
 at Kukatpally, Hyderabad and (ii) second pari passu charge on
 manufacturing buildings, plant and machinery charged to other term
 lenders.  (ii) Term Loan for Overseas Investment from State Bank of
 India is secured by collateral security (i) pari passu first charge by
 way of equitable mortgage on land owned by the Company admeasuring
 acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari
 passu charge on manufacturing buildings, plant and machinery charged to
 other term lenders.
 
 (c) (i) Term loan for Capital Expenditure from State Bank of Hyderabad
 is secured by first charge on the fixed assets created out of the loan,
 ranking pari-passu with the other term lenders and collateral security
 by (i) first pari passu charge by way of equitable mortgage on land
 owned by the Company admeasuring Acres 115.25 situated at Kukatpally,
 Hyderabad and (ii) second pari passu charge on manufacturing buildings,
 plant and machinery charged to other term lenders.  (ii) Term Loan for
 Overseas Investment from State Bank of Hyderabad is secured by
 collateral security (i) pari passu first charge by way of equitable
 mortgage on land owned by the Company admeasuring acres 115.25 situated
 at Kukatpally, Hyderabad and (ii) second pari passu charge on
 manufacturing buildings, plant and machinery charged to other term
 lenders.
 
 (d) The Term loan for Capital Expenditure from Oriental Bank of
 Commerce is secured by first charge on the fixed assets created out of
 the term loan, ranking pari-passu with the other term lenders and
 collateral security by (i) first pari passu charge by way of Equitable
 Mortgage on land owned by the Company admeasuring acres 115.25 situated
 at Kukatpally, Hyderabad and (ii) second pari passu charge on
 manufacturing buildings, plant and machinery charged to the other term
 lenders.
 
 (e) The Term loan for Capital Expenditure from Andhra Bank is secured
 by first charge on the fixed assets created out of the loan, ranking
 pari-passu with other term lenders and collateral security by (i) first
 pari passu charge by way of Equitable Mortgage on land owned by the
 Company admeasuring acres 115.25 acres situated at Kukatpally,
 Hyderabad and (ii) second pari passu charge on manufacturing buildings,
 plant and machinery charged to the other term lenders.
 
 (f) Fixed Deposits to the extent of Rs 375.86 Lakhs were secured by a
 residual charge on all tangible movable property and fixed assets
 including all movable machinery and plant & machinery, spares and
 stores, tools and accessories and other movables both present and
 future as approved by the Controller of Capital Issues vide his letter
 dated 1st November,1980.
 
 (g) Term Loans from SREI Infrastructure Finance Limited, Kotak Mahindra
 Bank Limited are secured by way of first charge on specific mining
 equipment of the Company.
 
 (h) Loan received from Hinduja Ventures Limited is secured by an
 exclusive charge on the Company''s land at Yelahanka, Bengaluru.
 
 4.  Fixed Assets
 
 Buildings include:
 
 (i) Rs. 7.09 Lakhs, which represents the cost of ownership flats Rs.
 7.08 Lakhs and Rs. 0.01 Lakhs being the value of Share money in Sett
 Minar Co-operative Housing Society Limited.
 
 (ii) Rs. 4.70 Lakhs, which represents the cost of ownership flats Rs.
 4.43 Lakhs and Rs. 0.27 Lakhs being the value of 270 ordinary shares of
 Rs. 100 each, fully paid up in Shree Nirmal Commercial Limited.
 
 5. Taxation
 
 (ii) Management has been advised Rs. 917.10 Lakhs (Previous year Rs.
 1973.25 Lakhs) received against advances and Rs. 700.00 Lakhs (Previous
 Year Rs. Nil) towards redemption of Preference shares adjusted to
 Revaluation Reserve in an earlier year, is not required to be
 considered in computing Minimum Alternate Tax (MAT).
 
 (iii) By way of abundant caution, no deferred tax asset has been
 created in respect of the adjustments made in earlier year to
 Revaluation Reserve.
 
 6.  Miscellaneous
 
 (a) The net exchange gain / (loss), (i.e., difference between the spot
 rate on the dates of the transactions and the actual rate at which the
 transactions are settled/appropriate rates applicable at the year end)
 debited to Profit & Loss Account is Rs. 92.93 Lakhs (Previous year
 credit of Rs.168.42 Lakhs).
 
 (b) Exchange difference in respect of forward exchange contracts to be
 recognised in the Profit and Loss Account in the subsequent accounting
 period is Rs. Nil (Previous year credit of Rs. 35.39 Lakhs)
 
 (c) (i) The Company has entered into the following derivative
 instruments:
 
 (d) Sundry creditors (Schedule 11- Current Liabilities) includes Rs.
 Nil due to Micro Enterprises and Small enterprises as defined under
 Micro, Small and Medium Enterprises Development Act, 2006(MSMED Act
 2006). The Company has not received any memorandum (as required to be
 filed by the supplier with the notified authority under the MSMED Act
 2006) claiming their status as Micro or Small or Medium Enterprises.
 
 (e) Operating Expenses - Schedule 15 includes expenditure incurred by
 IDL Explosives Limited on marketing staff salaries, rent, distribution
 etc aggregating to Rs. 308.40 lakhs and allocated to the Company.
 
 7.  Related party disclosures
 
 (A) Information relating to Related Party transactions as per 
 Accounting Standard 18 notified by the Companies (Accounting
 Standards) Rules, 2006.
 
 Name of the Related Party Relationship
 
 IDL Buildware Limited
 
 Gulf Carosserie India Limited
 
 Gulf Oil Bangladesh Limited
 
 PT Gulf Oil Lubricants Indonesia Subsidiary
 
 Gulf Oil (Yantai) Co. Limited, China
 
 Hinduja Infrastructure Limited
 
 IDL Explosives Limited Subsidiary from 22nd September, 2010
 
 IDL Speciality Chemicals Limited Subsidiary up to 28th March, 2010
 
 Gulf Oil International (Mauritius) Inc Entity holding more than 20% of
 the shareholding in the Company
 
 Mr. S.Pramanik, Managing Director Key Management Personnel
 
 8.  Disclosure as required by Accounting Standard 19, Leases
 notified by the Companies (Accounting Standards) Rules, 2006 are given
 below:
 
 (a) Operating Lease
 
 (i) Where the Company is a Lessee
 
 The Company''s significant leasing arrangements are in respect of
 operating leases for premises (residences, office, storage godowns for
 finished goods etc.). The leasing arrangements, which are not
 non-cancellable range generally between 11 months to 5 years and are
 usually renewable by mutual consent on agreed terms. The aggregate
 lease rents payable are charged as rent in the Profit and Loss Account.
 
 The assets given on lease are not non-cancellable and range generally
 between 11 months to 5 years and are usually renewable by mutual
 consent, on agreeable terms. The aggregate lease rentals are recognized
 as income from property in the Profit & Loss account.  Initial direct
 costs are recognized as an expense in the year in which these are
 incurred.
 
 b) Hire Purchase
 
 (i) The Company has taken plant and machinery, motor vehicles under
 hire purchase arrangements for which the ownership will be transferred
 to the Company at the end of the hire purchase term.
 
 (iiI) Notes:
 
 (a) Business Segment:
 
 The Company has considered business segment as the primary segment for
 disclosure Segments have identified and reported taking into account
 the Organisation structure, the nature of products and services, the
 deferring risks and returns of the segments
 
 The business segments of the Company are 
 
 (i) Explosives, 
 
 (ii) Consult dealing in Mining & Infrastructure Contracts,
 
 (iii) Property Development 
 
 (iv) Lubricating Oils, 
 
 (v) Others.
 
 (b) Geographical Segment:
 
 The Geographical segments considered for disclosure are as follows:
 
 - Revenue within India includes sales to customers located within India
 and earnings in India
 
 - Revenue outside India includes sales to customers located outside
 India and earnings outside India
 
 9.  The Honourable Supreme Court vide its order dated 16.11.2007, held
 that the stock transfers constituted inter sale in respect of 10 years
 assessment year viz. 1976-77 to 1983-84, 1989-90 & 1990-91 and also
 directed the authorities to examine the factual aspects and assess tax
 on the supplies made by the Company to the subsidiaries of Coal India
 Limited as inter state sale.
 
 The Company has filed writ petitions in the High Court of Orissa in
 August 2009 impleading other State Governments, CIL and its subsidiary
 Companies seeking directions for issue of C forms and pass over of
 local sales tax to the State of Orissa.  The High Court has held it and
 permitted the Company to approach appropriate forum to take the matter.
 
 The Company has been legally advised that as per the settled cases, the
 Company is entitled for concessional sales tax rates as per Central
 Sales Tax and interest should be charged from recomputation order.
 However, necessary provision has been made and is included as Provision
 – Indirect Taxes and no further liability is expected on this account.
 
 10.  Income from Property Development
 
 (a) Land meant for property development situated at Bengaluru and
 Hyderabad had been revalued as at 31st March, 2008, based on a
 valuation by an approved valuer. The resultant surplus on such
 revaluation amounting to Rs.  183,896.69 Lakhs had been credited to
 Revaluation Reserve in the earlier years. In view of steep recession in
 the realty sector, management reassessed the valuation of the aforesaid
 properties as on 31st March, 2009 and based on the guidelines issued by
 the Registration and Stamps Department of Karnataka & Andhra Pradesh,
 the value of the subject lands has been reassessed and, the resultant
 surplus on revaluation amounted to Rs. 43799.82 Lakhs. The resultant
 write down aggregating to Rs. 140096.87 Lakhs has, in accordance with
 the requirement of Accounting Standard-10 Accounting for Fixed assets
 been debited to Revaluation Reserve. During the previous year, the
 Company has entered into Agreement to Sell 4.75 acres of land to IDL
 Speciality Chemicals Limited. Since the aforesaid parcel of land is no
 longer meant for Property development, an amount of Rs. 1950.87 Lakhs
 has been withdrawn from Revaluation Reserve in the previous year.
 
 (b) Land at Bengaluru (cost Rs. 3294.41 Lakhs) meant for Property
 Development has been transferred to Inventory as approvals necessary
 for development of land has been obtained. Accordingly, Revaluation
 Surplus amounting Rs.  8893.50 Lakhs on the aforesaid parcel of land
 has been withdrawn from Revaluation Reserve.
 
 11.  In the earlier years the company had availed CENVAT Credit of Rs.
 555.52 lakhs in respect of tippers. The availment of such credit was a
 matter of dispute at Central Excise & Service Tax Appellate Tribunal.
 During the year based on the notification issued by the Ministry of
 Finance, Department of Revenue in June 2010, that cenvat on tippers can
 be availed and utilized prospectively. The Company has capitalized Rs.
 555.52 lakhs and accordingly provided depreciation. For ascertaining
 provision for tax, the Company has not claimed depreciation under the
 Income Tax Act, 1961 on the aforesaid amount pending settlement of
 legal dispute.
 
 12.  Previous years figures have been regrouped / recast wherever
 necessary.