1) (A) Contingent Liabilities not provided for ( As Certified by the
 Management ) :-
 
 (i) In respect of:-                               (Rs. in lacs)
 Particulars                              As on        As on
                                     31.03.2011     31.03.2010
 
 
 Central Excise/State Excise           5,633.08         743.48
 
 Customs                                 350.12         233.35
 
 Service Tax & Others                    293.18         164.85
 
 Sales Tax                                25.70
 
 (ii) Claims against the Company not acknowledge as debts amounting to
 Rs. 303.24 lacs (Previous Year Rs. 320.31 lacs).
 
 (iii) Bills discounted with Banks Rs. 3,365.09 lacs (Previous Year Rs.
 2,757.09 lacs).
 
 (iv) Corporate Guarantee to banks for loan availed by Shakumbari Sugar
 & Allied Industries Limited (a subsidiary company) amounting to Rs.
 22,633.13 lacs. (Previous Year Rs.  22,513.00 lacs) 
 
 (B) Custom duty saved amounting to Rs.1,283.43 lacs on raw material
 consumed (Previous Year Rs. 295.92) on import of raw material under
 Advance License, pending fulfillment of export obligation and to that
 extent profit is stated higher.
 
 The management is of the view that considering the past export
 performance and future prospects there is certainty that pending export
 obligation under advance licenses, will be fulfilled before expiry of
 the respective advance licenses. Accordingly and on “Going Concern
 Concept” basis there is no need to make any provision for custom duty
 saved.
 
 2) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances of Rs.1160.62 lacs,
 previous year Rs. 1,368.52 lacs) are Rs. 3,510.47 lacs (Previous year
 Rs.1,789.73 lacs).
 
 3) Since it is not possible to determine with reasonable
 certainty/accuracy insurance claims and interest from customers, the
 same are continued to be accounted on settlement basis.
 
 4) Advances recoverable in cash or kind includes loans and advances in
 the nature of Loan recoverable from the employees amounting to Rs.
 261.37 lacs (Previous year Rs. 154.58 lacs) where there is no interest
 or interest is below Section 372A of the Companies Act (Maximum Balance
 outstanding during the year Rs.  424.28 lacs, previous year Rs. 236.45
 lacs). Out of the above Rs. 66.04 lacs either has repayment schedule
 beyond seven years or there is no repayment schedule (Maximum Balance
 outstanding during the year Rs 127.77 lacs, previous year Rs.130.24
 lacs).
 
 5) Employees Benifits:
 
 b) Defined Benefit Plan:
 
 The employees’ gratuity fund scheme managed by a trust is a defined
 benefit plan. The present value of obligation is determined based on
 actuarial valuation using the projected Unit Credit Method, which
 recognizes each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation for leave encashment is
 recognized in the same manner as gratuity.
 
 The estimate of rate of escalation in salary considered in actuarial
 valuation, taken into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The above information is certified by the actuary.
 
 The principal assumptions are the discount rate & salary growth rate.
 The discount rate is generally based upon the market yields available
 on Government bonds at the accounting date with a term that matches
 that of the liabilities.
 
 6) In the earlier years, the State Government of Uttar Pradesh (UP) had
 imposed a levy of license fee on transfer of alcohol from the
 distillery to the chemical plant. The levy was challenged by the
 Company in the Hon’ble Supreme Court and on 18th October, 2006 the
 matter was finally decided by The Hon’ble Supreme Court in favour of
 the Company. Accordingly, Company has filed an application for refund
 of amount paid of Rs.507.05 lacs (shown as recoverable under the head
 Loans and Advances) with State Government of Uttarakhand.
 
 7) In the earlier years, the State Government of Uttarakhand had levied
 Export Pass Fee on ENA/RS export outside India. On the application of
 the Company the Hon’ble High Court of Uttarakhand vide its Order dated
 13th November, 2007 has granted stay on charging of Export Pass Fees
 till further Order. An amount of Rs. 44.53 lacs paid in earlier years
 is shown as recoverable from State Govt. of Uttarakhand in the books of
 account.
 
 8) (i) Company has investment of Rs. 4,427.50 lacs (Previous year Rs.
 2,827.50 lacs) and Rs.1,000.00 lacs (Previous year Rs.1,000.00 Lacs) in
 equity share capital and 10% cumulative redeemable preference share
 capital respectively in its subsidiary company Shakumbari Sugar and
 Allied Industries Limited (SSAIL) where book value is lower than
 carrying to cost. During previous year the Hon’ble High Court of
 Allahabad vide its order dated 24thJuly 2009 has approved the reduction
 of its paid up equity share capital. With such reduction in par and
 fully paid up value of equity share of Rs.10 each reduced to Rs.5 each,
 2 (two) fully paid up equity shares of Rs.5 each have been consolidated
 into 1 (one) equity share of Rs.10 each fully paid up.
 
 (ii) Company has an investment of Rs.27.41 lacs (Previous year Rs.27.41
 lacs) in equity share capital of subsidiary company IGL Chem
 International PTE. LTD. (IGL CIP) where book value is negative / lower.
 Considering the intrinsic value of the investee assets and long term
 nature of investment made, no provision at this stage is considered
 necessary by the management for investments in above stated
 subsidiaries namely SSAIL and IGL CIP.
 
 (iii) Loans and advances includes short term loan to SSAIL amounting to
 Rs. 463.39 lacs (Including interest accrued thereon) (Previous Year
 Nil), where management is confident about recoverability/realisability
 of the same (Maximum balance outstanding during the year Rs. 4,514.28
 lacs (Previous year Rs.1,200 lacs).
 
 9) The Company has challenged the legality and the validity of the
 financial derivative transaction dated 15th January 2008 entered into
 with Standard Chartered Bank, New Delhi (SCB), which is the subject
 matter of civil suit (Original suit) pending before the Hon’ble High
 Court of Delhi at New Delhi. Accordingly, of the total provision
 considered in in books on prudence basis of Rs.1,923.98 lacs (Previous
 Rs.1,923.98 lacs) excluding interest, if any, made against the said
 financial transaction dated 15th January 2008 is disputed and is
 subject to the final outcome of the aforesaid court proceedings.
 
 10) In accordance with Companies (Accounting Standards) Amendment Rules
 2009, the Company continued its policy, as exercised in financial year
 2008-09, the option of adjusting exchange differences arising on
 reporting of long term foreign currency monetary items related to
 acquisition of depreciable capital assets in the cost of the assets to
 be depreciated over the balance life of the assets and other long term
 monetary item in the “Foreign Currency Monetary Item Translation
 Difference”. Accordingly: (a) Exchange differences (gain)/ loss
 relating to long-term monetary items, in so far related to acquisition
 of depreciable capital assets, arising during the financial year
 2010-11 amounting to Rs. 220.02 lacs (Previous year Rs. (1,042.85)
 lacs) (net of depreciation Rs. 21.34 lacs, previous year Rs. 89.10
 lacs) adjusted to the cost of fixed assets, and (b) relating to Other
 long-term monetary items
 
 arising during the year amounting to Rs. 2.91 lacs (Previous year Rs.
 (47.58) lacs) (Net of amortization Rs.1.13 lacs, previous year Rs.
 38.38 lacs) are adjusted to “Foreign Currency Monetary Item Translation
 Difference”.
 
 11) Exceptional items represents exchange (gain)/loss Nil (Previous
 year Rs. (1,626.58) lacs (net)) on reinstatement of outstanding foreign
 exchange contracts.
 
 12) As required by section 22 of The Micro, Small and Medium
 Enterprises Development Act, 2006 the following information is
 disclosed:
 
 The above information’s regarding Micro, Small and medium Enterprise
 has been determined to the extent such parties have been identified of
 information available with the Company.
 
 13) (i) Catalyst is charged to the Profit & Loss Account as consumable
 (Stores & Spares) based on technically assessed useful life (1 to 3
 Years).
 
 (ii) Specialised Computer Software is amortised over its useful life of
 6 years on SLM basis.
 
 14) Capital work-in-progress includes machinery under installation,
 buildings under construction, construction/ erection material in hand,
 technical know-how fees, advances paid for plant & machinery and other
 assets and also includes the following pre-operative expenses:
 
 15) Related Parties Disclosure (As identified by the management): 
 
 (i) Relationships:
 
 A.  Subsidiary Companies
 
 -  IGL Finance Limited
 
 -  Shakumbari Sugar and Allied Industries Limited
 
 -  IGL CHEM International Pte. Ltd.
 
 B.  Key Management Personnel & their Relatives
 
 -   U. S. Bhartia
 
 -   M. K. Rao
 
 -   Pragya Bhartia
 
 C.  Enterprises over which Key Management Personnel have significant
 influence:
 
 - Ajay Commercial Co. (P) Ltd.
 
 - J. B. Commercial Co. (P) Ltd.
 
 - Kashipur Holdings Limited
 
 - Polylink Polymers (India) Ltd.
 
 - Hindustan Wires Limited
 
 16) (a) Revenue expenditure on Research & Development of Rs. 220.12
 lacs (Previous year Rs.193.64 lacs) incurred during the year has 
 been charged to profit and loss account.
 
 (b) Based on opinion of an expert, service tax credit setoffs of Rs.
 591.07 lacs not taken in earlier years has now been taken. The same has
 been included in the respective heads of accounts in the Profit Loss
 Account.
 
 17) (a) Balances of certain Debtors, creditors, other liabilities and
 loans and advances are in process of confirmation and/or
 reconciliation. Management is confident that on final reconciliation/
 confirmation of these, there will not be any material adjustment.
 
 (b) (i) Loans and advances includes advance for supplies Rs. 2,333.70
 (Previous year Nil) to Shakumbari Sugar and Allied Industries Limited
 (Subsidiary Company) (Maximum balance outstanding during the year Rs.
 2,700.26 lacs (Previous year Rs. 2,400.00 lacs).
 
 (ii) Debtors includes Rs. 344.40 lacs (Previous year Rs. 192.16 lacs)
 receivable from IGL Chem International Pte Limited (Subsidiary Company)
 (Maximum balance outstanding during the year Rs.  447.62 lacs (Previous
 year Rs. 445.94 lacs)
 
 18) Foreign exchange gain amounting to Rs.1,121.50 lacs (previous year
 Rs. 3,579.23 lacs), net of Loss of Rs.  2,663.77 lacs (previous year
 Rs. 784.38 lacs) has been included in the respective heads of accounts
 in the Profit Loss Account. This has no impact on Profit / Loss for the
 year.
 
 
 19) Segment Information:
 
 A. Information about Business Segments (Primary Segments):
 
 Notes:
 
 Primary Segment reporting (by business segment)
 
 Segments have been identified in line with Accounting Standard on
 ‘Segment Reporting’ (AS-17), taking into account the organisational
 structure as well as the differential risks and returns of these
 segments. The Company has identified three segments i.e. business
 chemical, liquor and others which includes guar gum, software
 development and Ennature Bio-pharma and reported accordingly.
 
 Secondary Segment reporting (by geographical segment-customer location)
 
 In respect of secondary segment information, the Company has identified
 its geographical segment as (a) domestic and (b) overseas on the basis
 of location of customers.
 
 Reportable segments
 
 Reportable segments have been identified as per the quantitative
 criteria specified in ‘Accounting Standard 17: Segment Reporting’.
 
 Segment Composition
 
 Chemicals Segment comprises manufacture and sale of Ethylene Glycol,
 Di-ethylene Glycol, Heavy Glycol and EO Derivatives etc.
 
 Liquor Segment comprises manufacture and sale of Ethyl Alcohol
 (Potable).
 
 ‘Others’ primarily include Guar Gum, Software development and Ennature
 Bio-pharma.
 
 20) Previous year’s figures have been regrouped / rearranged / recast
 wherever considered necessary.
 
 21) Additional Information:
 
 B. Managerial Remuneration to Chairman and Managing Director (CMD) and
 Executive Director:
 
 Note:
 
 (a) Liability of gratuity has not been ascertained separately, since
 funded through group policy. Leave encashment liability cannot be
 ascertained separately, hence not included in above.
 
 (b) Shareholders at their meeting held on 24th April, 2009 have
 approved revision in the remuneration of CMD w.e.f 1st April, 2008,
 however pending Central Government approval, remuneration of CMD for
 the period 1st April 2008 to 31st March 2010 was provided in respective
 year based on Schedule XIII of the Company’s Act 1956. Accordingly,
 additional amount of Rs.547.06 lacs (in terms of resolution passed by
 the shareholders and on receipt of Central Govt. approval) in respect
 of earlier year have been accounted for during the year.
 
 (c) In view of the inadequacy of profit as per section 198 of the
 Company’s Act 1956 no commission is payable.
 
 C. Capacities and Production
 
 Notes:
 
 * As certified by the Management and relied upon by the auditors, being
 a technical matter.  @@ Standard Capacity
 
 ** Net of captive consumption.
 
 # Production as received in bonded tank farm.
 
 @ Under the Industrial Policy Statement dated 24th July 1991 and the
 notifications issued thereunder, no licensing is required for these
 products.  
 
 ## Net of Evaporation loss.  
 
 *** Including CO2 received from Kashipur Nil (Previous year 354 MT) net
 of transit loss Nil (Previous year 6 MT)
 
 E. Commodity and Foreign Exchange Derivatives and exposures (as
 certified by the management).
 
 b) Commodity derivative and exchange fluctuation gain of Rs. 941.71
 lacs (Previous year Rs. 3256.90), is net of loss of Rs.1,437.13 lacs
 (Previous year Rs. 605.47 lacs).
 
 c) The Company uses derivative instruments for hedging possible losses
 and exchange fluctuation gain is Rs. 649.17 lacs net off loss of Rs.
 232.90 lacs (Previous year loss of Rs. 670.02 lacs net of gain
 Rs.1223.67 lacs) which is inclusive of loss of Rs. 202.90 lacs
 (Previous year loss of Rs. 416.67 lacs) provision for mark to market
 loss on account of all outstanding financial transactions as on 31st
 March 2011.
 
 d) Considering the principle of prudence and announcement made by The
 Institute of Chartered Accountants of India ‘Accounting for
 Derivatives’ in March, 2008, the Company has provided an amount of Rs.
 597.46 lacs included in (a) (Previous year Rs.416.67 lacs) on
 outstanding contracts to the profit & loss account, account of
 commodity and foreign exchange derivative instruments.
 
 H. In accordance with the notification no. S.O. 301 (E), issued by the
 Ministry of Corporate Affairs, dated 8th Feb 2011, the Company has
 availed exemptions from disclosure requirements of paragraphs 3(i)(a),
 3(ii)(a) and 3(ii)(b) of Part II of Schedule VI.
 
 I. Remittance in Foreign Currency on Dividend Account
 
 * Excluding for those shareholders for whom dividend has been credited
 to their NRE Accounts in India.