As at              As at
                                   September 30, 2006 September 30, 2005
                                         Rs. Millions       Rs. Millions
 
 1. Capital commitments (net of advances)    1,314.48              24.19
 
 2. Contingent liabilities :
 
 (a) Claims against the Company not
 acknowledged as debts *
 
 - Income Tax                                   75.90                  -
 
 - Excise                                        9.58              26.62
 
 - Sales Tax                                     7.49               3.05
 
 - Labour                                        3.96               1.83
 
 - Service Tax                                   1.44                  -
 
 - Others                                       38.59              33.88
 
 * All the above 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 of the
 Company.
 
 (b) On partly paid shares # # (# Rs.20)
 
 4. An additional amount of Rs. 143.61 millions was due to farmers for
 the cane crushing season 2002-03 due to fixation of higher prices by
 U.P. Government vide Notification No 8045/CD/46-3-04-58 (122)/97 dated
 October 05, 2004. The Company has charged and paid the differential
 cane price for the sugar season 2002-03 during the previous year ended
 September 30, 2005 and that has been considered as an exceptional item
 in the profit and loss account.
 
 5. Research and development expenses amounting to Rs.3.02 Millions
 (previous year Rs.2.50 Millions) have been charged to the respective
 revenue accounts.
 
 6. Sales are net of commission of Rs.20.15 Millions (previous year
 Rs.21.32 Millions).
 
 7. a) Sundry Creditors include Rs.1.73 Millions (previous year Rs.1.58
 Millions) due to suppliers covered under the
 
 Interest on Delayed Payment to Small Scale and Ancillary Undertakings
 Act, 1993. The Company has not received any claim for interest from
 any supplier covered under the  Interest on Delayed Payments to Small
 Scale and Ancillary Industrial Undertakings Act, 1993 to the extent
 such parties have been identified from the available information.
 
 (b) The names of small scale industrial undertakings to whom the
 Company owes amount outstanding for more than 30 days as at September
 30, 2006 are as under :-
 
 M/s Avirag Engineers, M/s Chemical System Technologies, M/s Central
 Agencies, M/s Deepak Ceramic and Allied Products, M/s Hi-Tech
 Equipments, Jagat Machinery Mfg.Pvt Ltd., Mangla Rubber Industries, M/s
 Oil Seal Mfg. Co. Pvt. Ltd., M/s Pradip Engineering Corporation, M/s
 Quest Computer Forms & Papers Pvt. Ltd. M/s Risansi Industries Ltd.,
 M/s R.C. Engineering Works Pvt. Ltd., R.S. Package Industries, M/s
 Spray Engineering Devices, M/s Subhash Rubber Works Pvt. Ltd., M/s
 Shreeji Engineering Works, M/s Techno Fabricator India Pvt. Ltd., M/s
 Three Star Engg. Works, Uttar Pradesh and Engines and Machines, Uttam
 Welds, Varun Pumps (India), Vishwakarma Con. Belt Reparing Works,
 Vishwakarma Engg. Works, Welwin Industry Ltd.
 
 c) The above information has been compiled in respect of parties to the
 extent to which they could be identified as small scale and ancillary
 undertakings on the basis of information available with the Company.
 
 8. (i) Pursuant to the Scheme of Amalgamation (the Scheme) under
 Section 391 and 394 of the Companies Act, 1956 of erstwhile Nanglamal
 Sugar Limited (NSL), with the Company approved by the Honble High
 Court of Delhi vide its Order dated December 6, 2005, which became
 effective on December 16, 2005 on filing of the certified copy of the
 Order of the High Court of Delhi with the Registrar of Companies, NCT
 of Delhi and Haryana, all the properties, assets, liabilities and
 reserves of the erstwhile NSL have without further act or deed, been
 transferred to and vested in the Company, at their respective book
 values, as a going concern with effect from the appointed date i.e.
 October 1, 2004.
 
 For giving effect to the amalgamation in the nature of merger, the
 Pooling of interest method has been followed in these accounts
 wherein, the assets and liabilities as at October 1, 2004 and the
 transactions including income and expenses for the year from October 1,
 2004 to September 30, 2005 of the erstwhile NSL (being the period when
 pending effectuation of the Scheme, the business and activities of the
 erstwhile NSL were being run and managed in trust for the Company) have
 been incorporated in the accounts. Consequently, prof it of erstwhile
 NSL as at September 30, 2005 amounting to Rs. 1.69 millions is shown in
 the profit and loss account. Pursuant to the above amalgamation, the
 investments of the Company in the erstwhile NSL stand cancelled.
 
 (ii) Consequent to the effectuation of the Scheme, the reversal of
 profit on sale of fixed assets included in `other income aggregating
 to Rs. 26.25 millions and ensuing current tax/deferred tax liability
 thereon amounting to Rs. 9.79 millions accounted for in the year ended
 September 30, 2005 has been adjusted against the surplus in profit and
 loss account carried forward from earlier year.
 
 9. The Company has set up a sugar plant with an installed capacity of
 3000 TCD at Nanglamal, district Meerut, U.P. which commenced
 commercial production on January 9, 2006.
 
 10. (a) The provision for taxation for the year comprises of the tax
 liability for Assessment year 2006-07 to the extent relevant for the
 period from October 1, 2005 to March 31, 2006 and the tax liability
 estimated based on the profits for the period from April 1, 2006 to
 September 30, 2006.
 
 (b) The provision for income tax has been computed after considering
 the benefits in respect of brought forward losses and unabsorbed
 depreciation, allocated to the Company under section 72A(4)(b) of the
 Income Tax Act, 1961, from erstwhile undivided Siel Limited.
 
 11. Segment reporting
 
 As the Companys business activity falls within a single primary
 business segment viz `Manufacturing and Sale of Sugar, the disclosure
 requirements of Accounting Standard (AS)-17 `Segment Reporting issued
 by the Institute of Chartered Accountants of India are not applicable.
 
 13. Earnings per share:
 
                                           Year ended    18 Months ended
                                   September 30. 2006 September 30, 2005
                                       (Rs./Millions)     (Rs./Millions)
 
 Profit aftertax                               141.49             503.27
 
 Weighted average
 number of equity shares
 after adjusting bonus
 element of right issue.        Nos.         42485315           41366788
 
 Basic and diluted earnings per share in
 rupees(face value-Rs. 10 per share)    Rs.      3.33              12.17
 
 14. Directors Remuneration *
 
 Salaries and allowances                         5.40               4.80
 
 Commission                                      2.21               5.62
 
 Contribution to provident and other funds       0.72               0.72
 
 Value of perquisites                            0.13               0.18
 
 Directors sitting fees                         0.32               0.32
 
 *Do not include contribution to gratuity fund and provision for leave
 encashment since the same are determined for the Company as a whole.
 
 Computation of net profit in accordance with section 198 of the
 Companies Act, 1956 and commission payable to Chairman and Managing
 Director:
 
                                           Year ended         Year ended
                                   September 30, 2006 September 30, 2005
                                       (Rs./Millions)     (Rs./Millions)
 
 Profit before tax,
 per profit and loss account                   214.02             573.14
 
 Add: Directors remuneration
 including commission                            8.46              11.32
 
 Directors sitting fees                         0.32               0.32
 
                                               222.80             584.78
 
 Less: Capital profit on sale of fixed assets       -              22.92
 
 Adjustment relating to Scheme                      -               1.64
 
 Net profit                                    221.16             561.86
 
 Commission @ 1% of the above profit
 to the Chairman and Managing Director           2.21               5.62
 
 16. Consequent to import of 16385.73 metric tonnes of raw sugar during
 the previous year, the Company has an obligation to export 15608.32
 metric tonnes of white sugar by March 2007. Against this export
 obligation, 5250 metric tonnes of white sugar has been exported during
 the year ended September 30, 2006.
 
 17. Pursuant to the Scheme of Arrangement (Scheme) under sections 391
 and 394 of the Companies Act, 1956 of undivided Siel Limited, approved
 by the High Court of Delhi vide its Order dated August 26, 2003 which
 became effective on September 05, 2003 on filing of the certified copy
 of the Order of the High Court of Delhi with the Registrar of
 Companies, Delhi and Haryana, the undertakings of undivided Siel
 Limited comprising of Mawana Sugar Works (MSW) and Titawi Sugar Complex
 (TSC), together with all properties, assets both movable and immovable
 and liabilities including contingent liabilities have been transferred
 to and vested in the Company at their respective book values with
 effect from the appointed date i.e. October 01, 2002. In terms of the
 Scheme certain specified lands of undivided Siel Limited, which was a
 part of security to various lenders, were transferred to and vested in
 Shivajimarg Properties Limited (SPL), a 100% subsidiary Company of Siel
 Limited, a special purpose vehicle incorporated for the purpose of
 disposal of lands, at a specified estimated net realisable value. In
 consideration the lenders liabilities equivalent to estimated
 realisable value were also transferred to SPL. The balance of
 liabilities of lenders were allocated/retained between the Company and
 Siel Limited (Residual Siel Limited).
 
 The Scheme provides that the surplus, if any, arising from the excess
 of the realisation of investments by Siel Limited in SPL, net of
 certain specified liabilities shall accrue to the Lenders
 proportionately to the extent of only meeting the term debts of Siel
 Limited (Residual Siel Limited) and Mawana Sugars Limited, without
 recourse to Siel Limited.
 
 In terms of the aforesaid provision, the borrowings aggregating
 Rs.991.46 Millions, remaining unpaid, out of the liability of lenders
 transferred from Siel Limited under the Scheme and remaining
 outstanding as at September 16, 2005 stand extinguished, being already
 got discharged, pursuant to the Scheme from surplus arising on the sale
 of shares of SPL.
 
 The extinguishment of the borrowings, referred to as above in the
 Scheme, is also supported by a legal advice and a confirmation from the
 Board of Directors of Siel Limited, that the Company does not owe any
 amounts to Siel Limited in respect of the Companys debts so discharged
 from surplus arising on the sale of shares of SPL.
 
 The extinguishment of the debt aggregating Rs.991.46 Millions, being an
 item of capital nature, has been credited to Capital Reserve account in
 Reserves and Surplus schedule during the year ended September 30, 2005.
 
 18. The Company has set up a project for Co-generation of 6 MW of
 Power at Mawana Sugar Works, district Meerut in the State of U.P. and
 commenced the sale of power to Uttar Pradesh Power Corporation Limited
 w.e.f. March 22, 2006.
 
 19. On the basis of managements review in respect of certain matters,
 the Company has written back provisions relating to prior years
 aggregating Rs. 31 millions under the head `other income during the
 year ended September 30, 2006.
 
 21. There are no foreign currency exposures that are hedged by
 derivative instruments or otherwise as at 30.09.2006.
 
 22. The current year figures are not comparable with that of previous
 year as it includes figures of erstwhile Nanglamal Sugar Limited,
 amalgamated with the Company pursuant to the Scheme of Amalgamation
 (refer note 8).
 
 23. Previous years figures have been regrouped wherever necessary.