1.  Contingent Liabilities not Provided for    2010-11       2009-10
 
 a.  Guarantees issued by Bank             30,13,35,140  17,18,00,686
 
 b.  Corporate Guarantee given on behalf
 of Subsidiary                                      Nil  24,87,23,070
 
 c.  Estimated amount of contracts 
 remaining to be executed on capital\         11,14,127           Nil 
 commitment (Net of Advance)
 
 d.  Liability on account of Customs duty 
 if export commitments given for import of 
 machinery at concessional rate of duty 
 are not met                                        Nil   2,15,60,301
 
 e.  Income Tax/Sales Tax/Customs Duty/
 Excise Duty demands disputed              18,28,31,307  10,50,81,787 
 in appeals
 
 2.  In the opinion of Board of Directors, current assets, Loans and
 Advances have value on realization in the ordinary course of business,
 at least equal to the amount at which they are stated in the balance
 sheet and that the provision for known liabilities is adequate and
 reasonable. There are no contingent liabilities other than stated
 herein above.
 
 3.  The Company has availed Buyers Credit from Banks during the year.
 The outstanding amount as on March 31 2011 is Rs.111,95,47,939/-
 (Previous Year Rs.134,53,40,122/-) included under Short Term Advance
 from Bank (Schedule-4) is guaranteed by Banks against Fixed Deposits
 amounting to Rs.117,82,85,667/- (Previous Year Rs.137,16,00,000/-)
 included in Deposit Account under Cash & Bank Balances (Schedule-7).
 
 4.  Foreign Currency Convertible Bonds
 
 a.  The Company has issued Zero Coupon Foreign Currency Convertible
 Bonds (FCCBs) amounting to US $ 40 Million on February 5, 2007. The
 FCCBs have a maturity of five years and 1 day from the date of issue.
 
 b.  The Holders of the FCCBs have a right to convert the FCCBs into
 Equity Shares of the Company of Re.1/- each at a conversion price of
 Rs.39.20 per share. The conversion price is subject to adjustment/reset
 under certain circumstances as per the Terms and Conditions of the
 FCCBs.
 
 c.  Unless previously converted, redeemed or purchased and cancelled,
 the FCCBs will be redeemed on the maturity date at 144.50 percent of
 their principal amount.
 
 d.  The proceeds of the FCCB issue (net of expenses) have been used for
 the approved purposes. There is no unutilised amount of FCCB funds as
 on March 31, 2011 (Previous year Rs.2,04,188/-).
 
 e.  Unsecured Loans includes Rs.18,14,17,529/- being premium payable on
 redemption of FCCBs (Previous Year Rs.15,58,47,311/-).
 
 f.  During the year the Company issued 15,80,000 equity shares of
 Re.1/- each (Previous year 6,77,142) to FCCB holders upon exercise of
 conversion option.
 
 g.  The Premium on redemption attributable to the FCCBs converted
 during the year and provided in the books of account in the earlier
 year amounting to Rs.1,16,14,896/-(net of taxes) (Previous year
 Rs.9,75,25,570/- net of taxes towards buy back and conversion) has been
 reversed and credited to the Profit and Loss Account as Extraordinary
 Income.
 
 5.  In line with the notification dated March 31, 2009 issued by the
 Ministry of Corporate Affairs amending Accounting Standard AS-11
 Effects of Changes in Foreign Exchange Rates, the Company has chosen
 to exercise the option under paragraph 46 inserted in the standard by
 the notification.
 
 Accordingly the exchange differences on long term monetary items
 related to Foreign Currency Liabilities and Assets in so far as they
 are related to acquisition of Fixed Assets has been added/deducted from
 the cost of the relevant fixed assets and depreciation has been charged
 in the books of accounts after taking the effect of such changes.
 
 Arising from the above the Company has deducted an amount of
 Rs.65,11,434/- (Previous Year Rs.12,54,13,302/-) from fixed assets
 being the exchange differences on long term monetary items relatable to
 the acquisition of fixed assets.
 
 In respect of exchange differences on long term monetary items related
 to Foreign Currency Liabilities in so far as they are not related to
 the acquisition of Fixed Assets , the Company has accounted the
 exchange difference in Foreign Currency Monetary Item Translation
 Difference Account and has amortised the same over the life of the
 monetary item but not later than March 31, 2011. Accordingly Exchange
 Gain amounting to Rs.67,20,000/- has been amortised during the year.
 (Previous Year Rs.67,20,000/-)
 
 6.  There is no Micro, Small and Medium Enterprises, to whom the
 Company owes dues, which are outstanding for more than 45 days as at
 March 31, 2011. This information as required to be disclosed under
 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. This has been relied upon by
 the auditor.
 
 7.  Sundry creditors include bills payable for purchase of goods
 Rs.291,04,49,897/- (Previous Year Rs.215,51,84,866/-)
 
 b.  Borrowing cost capitalized during the year on funds attributable to
 construction/set up of project Rs.Nil (Previous Year Rs.1,80,95,437/-).
 
 8.  a.  The Company has set up Agri-warehousing and Marketing
 infrastructure at different locations on which company is entitled to
 back ended subsidy as per the Scheme of Ministry of Agriculture,
 Government of India.
 
 b.  The eligible amount of subsidy is disbursed through NABARD directly
 to the financing bank, which is kept in reserve fund account by the
 bank and is disbursed to the Company as interest free loan. On payment
 of last installment of loan or five years from the date of disbursement
 of first installment of loan, which ever is later, the subsidy will be
 adjusted with the loan from bank.
 
 c.  However, as per the accounting policy adopted, company has credited
 the subsidy to related assets account on receipt of sanction from the
 competent Authority. Depreciation provided in earlier years is reversed
 to profit and loss account if subsidy related to assets capitalized in
 earlier years is sanctioned during the year and shown as depreciation
 relating to earlier year.
 
 d.  The Term Loan from State Bank Of India includes a sum of
 Rs.8,40,26,200/- (Previous Year Rs.7,64,62,952/-) disbursed as interest
 free loan in lieu of Capital Subsidy and advance against Capital
 Subsidy received by the Bank from NABARD.
 
 9.  The Company has acquired land on lease in earlier years and as per
 the policy adopted no amortization was made.  However with effect from
 current year Company has amortized the lease premium over the period of
 lease. The lease premium relating to earlier years Rs.77,63,587/- is
 amortized during the year and is shown as Prior period adjustment in
 the profit and loss account.
 
 10.  a.  During the year Company was allotted 2,00,000 6% Redeemable
 preference Shares of Rs.100/- each, in SWAP of 2,00,000 6% Redeemable
 Preference Shares held in Sunshine Oleochem Ltd.  as per the Scheme of
 Amalgamation approved by the jurisdiction high court.
 
 b.  15,000 Equity Shares of Ruchi Soya Industries Limited purchased by
 the Company in an earlier year are yet to be transferred in its name.
 The dividend income on the said shares is also not recognized in the
 accounts. The Company is in process of transfer of shares and recovery
 of dividend income.
 
 c.  Company has received a sum of Rs.62,510/- by way of dividend on the
 shares sold in earlier years. The amount is included in Miscellaneous
 Income.
 
 11.  Sales includes loss Rs.29,55,361/- (Previous Year gain
 Rs.2,46,736/-) and Purchases includes loss Rs.3,24,57,951/- (Previous
 Year gain Rs.52,38,648/-) respectively towards difference arising on
 account of fluctuation in the rate of exchange, consequent to recording
 the transactions as per revised Accounting Standard No. 11 issued by
 the Institute of Chartered Accountants of India.
 
 12. The Company has availed Sales Tax Deferment loan of
 Rs.19,19,42,262/- from Government of Andhra Pradesh for the Company''s
 refining unit set up at Kakinada Andhra Pradesh. In case of default in
 repayment of the Sales Tax deferment loan, the movable and immovable
 properties of the Company are liable to be attached as a prior charge
 for recovery of loan under Revenue Recovery Act together with interest
 @ 21.50% calculated from the due date for repayment of loan.
 
 13.  Related Party Disclosure
 
 List of Related Parties and Relationships
 
 Party Name Relation
 
 1) Holding and Subsidiary Companies
 
 a.  Peninsular Tankers Pvt. Ltd.  Subsidiary Company
 
 b.  Ruchi Green Energy Pvt. Ltd.  Subsidiary Company
 
 (Formerly RIFL Energy Pvt. Ltd.)
 
 c.  Ruchi Resources Pte. Ltd.  Subsidiary Company
 
 d.  Mangalore Liquid Impex Pvt. Ltd.  Subsidiary Company
 
 2) Associate Company Ruchi Soya Industries Ltd.
 
 3) Entities where control exist
 
 Narang and Ruchi Developers Company is a Partner
 
 4) Mr. Mahendra Prasad Sharma Key Management Personnel (Whole time
 Director - upto September 9, 2010)
 
 14.  Other expenses in Schedule 13 includes Rs.56,95,943/- (Previous
 Year Rs.1,07,00,594/-) bad debts written off.
 
 15.  Advance recoverable in cash or in kind includes share application
 money given to Subsidiaries Rs.32,00,000/- (Previous year
 Rs.12,59,93,196/-)
 
 15. Previous years figures have been re-grouped or re-arranged wherever
 considered necessary.