I.  Basis of preparation of Financial Statements
 
 Rain Commodities Limited (the Company) follows the accrual basis of
 accounting. The financial statements are prepared on historical cost
 basis and to comply with accounting principles generally accepted in
 India, the Accounting Standards notified under Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956.
 
 II.  Contingent liabilities not provided for in respect of:
 
                               December 31, 2010   December 31, 2009 
                                  Amount                 Amount
 
 Matters under dispute:
 
 Sales Tax                          --                 57,046
 
 Excise Duty                        --                  5,588
 
 Income Tax                         --                 22,527
 
 Bank guarantees                    --                 17,531
 
 Corporate Guarantee issued on behalf of wholly owned subsidiaries :
 
 - Rain Commodities USA Inc.,
 USD 87 million (December 31,
 2009: USD 90 million) 
 equivalent to                  3,898,470           4,201,200
 
 -   Rain CII Carbon (Vizag) 
 Limited
 [formerly Rain Calciner
  Limited]                      1,135,000               --
 
 -   Rain Cements Limited [formerly
 
 Rain CII Carbon (India) Ltd]       --              1,035,000
 
 III.  Capital Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 accounts [net of capital advances - Rs. Nil (December 31, 2009 -
 Rs.83,471)] not provided for Rs. Nil (December 31,2009 - Rs.79,009).
 
 IV.  Micro and Small enterprises
 
 There are no Micro and Small enterprises to whom the company owes dues,
 which are outstanding for more than 45 days as at December 31, 2010.
 This information as required to be disclosed under the Micro, Small and
 Medium Enterprises Development Act,2006 has been determined to the
 extent such parties have been identified on the basis of information
 available with the company.
 
 V.The Company has entered into various operating lease agreements
 for assets comprising storage facilities. The lease rentals amounting
 to Rs. 6,936 (December 31, 2009 - Rs.27,860) have been charged to
 revenue. These agreements are cancellable in nature and there is no
 restriction in respect of such leases.
 
 VI.  (a) There are no outstanding contracts outstanding forward
 exchange contracts as at the year end.
 
 VII. Related Party Disclosures
 
 a) Names of related parties and description of relationship:
 
 (i) Subsidiaries
 
 a) Rain Cements Limited [formerly Rain CII Carbon (India) Limited]
 (RCL)
 
 b) Rain Commodities (USA) Inc (RCUSA)
 
 c) Moonglow Company Business Inc, BVI (Moonglow) (Subsidiary of RCL)
 
 d) Rain Global Services LLC (RGS) (Subsidiary of RCUSA)
 
 e) RGS Egypt Ltd.(RGSE) (Subsidiary of RGS)
 
 f) Rain Global Services HK Limited (Subsidiary of RGS upto August 20,
 2010)
 
 g) Rain Carbon (USA) LLC (RCUSA1) (Subsidiary of RCUSA from September
 15, 2010)
 
 h) Carbon Holdings USA LLC, USA (CHUSA) with effect from April 12,
 2010
 
 i) CPC Holdings USA LLC (CPCUSA) (Subsidiary of CHUSA with effect
 from April 12, 2010).
 
 j) Rain CII Carbon (Vizag) Limited
 
 (RCCVL) (formerly Rain Calciner Limited) (Subsidiary upto May 14,
 2010 and thereafter subsidiary of CPCUSA)
 
 k) Rain CII Carbon LLC, USA (RCC)
 
 (Subsidiary of Moonglow upto September 15, 2010 and subsidiary of
 CPCUSA thereafter)
 
 l) Rain CII Carbon Mauritius Limited (RCCM) [Subsidiary of RCC]
 
 m) CII Carbon Corp. (Subsidiary of RCC)
 
 n) Zhenjiang Xin Tian Tansu Co. Ltd., (Subsidiary of RCCM)
 
 (ii) Enterprise where key managerial
 
 personnel along with their relatives exercise significant influence
 
 Sujala Investments Private Limited
 
 (iii) Key Management Personnel
 
 a) Mr. N. Radha Krishna Reddy, Chairman.
 
 b) Mr. N. Jagan Mohan Reddy, Managing Director.
 
 c) Mr. N. Sujith Kumar Reddy, Executive Director
 
 VIII.The following donations were made to political parties during the
 year: CPI - Rs.10 (Previous Year Lok Satta - Rs.  200 and CPI(ML) New
 Democracy Party Rs. 80)
 
 IX. Pursuant to the Scheme of Arrangement (refer note III), the
 cement business of the Company was transferred to Rain Cements Limited
 [Formerly Rain CII Carbon (India) Limited] with effect from April 1,
 2010. The figures of the previous year represent the Cement and Green
 Petroleum Coke trading business for the full year, hence the figures of
 the previous year are not comparable with that of the current year.