1.  Although the accumulated losses as at the year end amounted to
 Rs.528,536,671 (Previous Year Rs.412,154,944) as against paid up share
 capital of Rs.267,019,990, (Previous Year Rs.267,019,990) these
 financial statements have been prepared by the Management on a going
 concern basis taking into account the financial support of promoters/
 shareholders and the various revival / restructuring options being
 actively pursued by the management, including relocation of
 manufacturing operations.
 
 2.  In view of accumulated losses, no transfer has been made to the
 Debenture Redemption Reserve in respect of secured and unsecured Non
 Convertible Debentures.
 
 3.  Restructuring and net worth status
 
 a) After the CDR ''Rework'' proposal was rejected by the lenders, the
 Company had declared formal closure of its manufacturing operations
 with effect from June 26, 2008 as per the relevant provisions of The
 Industrial Disputes Act, 1947. The legal dues and compensation payable
 to the workmen affected by the closure have been duly provided in the
 accounts (Rs.120 lacs provided in previous year and Rs.236.11 Lacs
 provided in the Current year and Disclosed in exceptional items) in
 terms MOU for settlement  into in this regard. As the same
 could not be paid before 31st March 2011, the employees union has
 preferred to move to the Industrial Courts on the issue and their 
 matter is still pending before the Hon''ble Court.
 
 b) Interest liability has not been provided on assigned loans and
 debentures as revised terms are in the process of being negotiated and
 in the opinion of the management, no further liability is expected.
 
 c) During the year ended March 31, 2009 the Company had obtained the
 approval of shareholders through postal ballot for a resolution
 proposed as per Sec 293 (1) (a) of The Companies'' Act, 1956. A
 shareholder had filed a petition before the Hon''ble Company Law Board
 opposing the postal ballot exercise carried out by the Company. The
 Hon''ble CLB, while allowing the postal ballot process to be completed
 and results to be declared, restrained the Company from disposing of
 any of its fixed assets and subjected the result of the postal ballot
 to the final outcome of the petition.  The petition is still pending
 before the Hon''ble CLB Bench.
 
 d) The Company continues to actively pursue the possibility of
 establishing manufacturing operations at another site offering better
 competitive advantages in terms of supply chain logistics, input
 availability and cost. The Management expects to arrive at some
 preliminary conclusions on this option during the year.
 
 e) As part of restructuring, during 2008-09 the Company had also
 entered into an arrangement for assignment of lease hold rights of its
 land and part advance received has been utilised, inter alia, to settle
 certain liabilities of the company.
 
 f) The net worth of the Company has fully eroded during the year ended
 March 31, 2010. However, the management has received legal opinion to
 the effect that no reference need be made to BIFR, as certain
 conditions required for the same as per the Sick Industrial Companies
 (Special Provisions) Act, 1985 are not applicable to the Company under
 the present circumstances.
 
 4.  Revaluation
 
 (a) The Company had revalued the land, building and certain plant and
 machinery as on April 1, 1996 based on the valuation made by M/s P.C.
 Gandhi & Associates, an independent firm of consulting Engineers,
 Surveyors and Government Approved Valuers vide their report dated 30th
 April, 1997. Accordingly, the original costs of the above assets as on
 April 1, 1996 have been restated at estimated market value arrived
 after adjusting the depreciation on the estimated replacement cost. The
 resultant increase in net book value arising on revaluation amounting
 Rs.  428,593,000 was transferred to Revaluation Reserve Account during
 the period ended 31st August, 1997. The following re-valued amounts
 remain substituted for the historical cost in the gross block of fixed
 assets:
 
 Depreciation attributable to the enhanced value of the assets arising
 on the revaluation amounting to Rs.3,221,890 (Previous year Rs. Nil)
 has been transferred from Revaluation Reserve Account to the credit of
 the Profit and Loss Account for the period ended 31st August, 1997.
 
 (b) Revaluation Reserve amounting to Rs.428,593,000 had been adjusted
 to the then accumulated losses pursuant to scheme of restructuring
 approved by the Hon''ble High Court of Bombay vide its order dated April
 23, 2001.
 
 5.  Contingent Liabilities not provided for in respect of:
 
                                          Year ended          Year ended
                                    31st March, 2011    31st March, 2010
                                              Rupees              Rupees
 
 
 a) Outstanding Guarantees given 
 by banks                                    -                 1,084,000
 
 b) Claims against the Company 
 relating to
 (including interest or penalty up to 
 the date of demand):-
 
 Excise Duty                               6,226,499           6,226,499
 
 Sales Tax                                 3,140,477           5,437,647
 
 Cess Liability                            2,835,224           2,835,224
 
 MIDC Charges                             10,831,716          25,524,142
 
 Suppliers                                 1,681,414           1,681,414
 
 
 c) Other Matters                            125,000             125,000
 
 d) Arrears of Fixed Preference 
 Dividend (Including Dividend Tax)         4,979,032           4,351,430
 
 e) Liability as may arise in respect of matter as referred in 4(a)
 above and further interest liability/penalty if any as may arise in the
 matters mentioned in Para 6(b) above, amount
 
 6.  (a) Duncans Industries Limited has given corporate guarantees
 favoring consortium banks for Rs.154,100,000 (Previous year
 Rs.154,100,000) for Company''s working capital facilities and amount due
 to the banks/other is Rs.88,669,760 (Previous year Rs.88,988,010)
 including FITL Rs.11,611,718 (Previous year Rs.11,611,718) Letters of
 Credit and Bank Guarantees Rs. Nil (Previous year Rs.1,084,000).
 
 (b) All the Bank Working Capital Loans (including interest accrued and
 due) have been / are being personally guaranteed by a director of the
 Company.
 
 7.  (a) In the opinion of management, Current Assets, Loans and
 Advances have a value on realization in the ordinary course of business
 at least equal to the amount at which they are stated.
 
 (b) The accounts of certain Sundry Debtors, Sundry Creditors, Banks,
 Advances and Lenders are subject to confirmation/reconciliations and
 adjustments, if any. The Management does not expect any material
 difference affecting the current year''s financial statements.
 
 8.  a) Deferred Tax Asset/Liability
 
 The Company has recognize the revised net deferred tax asset in
 accordance with Accounting Standard 22 - Accounting for Taxes on
 Income issued by The Management is of the opinion that there will be
 sufficient future income against which such deferred tax assets will be
 fully realised.
 
 b) No current tax provision has been made in the accounts in absence of
 taxable profits.
 
 9. Details of transactions with related parties as identified by the
 management in accordance with Accounting Standard -18 of the Companies
 Accounting Standard Rules, 2006 are as follows:
 
 (1) Key Management Personnel: Whole Time Director : Mr. S. P. Gupta
 
 (2) Associates/ Group Companies with whom the company has entered into
 the transaction during the year: ISG Traders Limited, Shubh Shanti
 Services Limited
 
 (3) The following transactions were carried out with each type of the
 above related parties, associates / group companies in the ordinary
 course of business and at arm''s length :
 
 Notes: Figures in the brackets relates to previous year.  11.
 Managing/Whole time Director''s remuneration:
 
 The Company has applied to Central Government for necessary approval
 for an amount of Rs.2,098,147 (relating to earlier years) paid in
 excess as per Schedule XIII of the Companies Act, 1956 towards
 Managerial remuneration and the same is awaited.
 
 10. Disclosure in accordance with Section 22 of the Micro, Small and
 Medium Enterprises Development Act, 2006
 
 (*) - Amounts not determined.
 
 The Company has compiled the above information based on verbal
 confirmations from suppliers. As at the year end, no supplier has
 intimated the Company about its status as a Micro or Small Enterprise
 or its registration under the Micro, Small and Medium Enterprise
 Development Act, 2006
 
 11.  After the resignation of Company Secretary w.e.f June 30, 2007,
 the Company is making concerted efforts to appoint a Company Secretary
 required to be appointed under Section 383A of the Companies Act, 1956.
 
 12.  Amount overdue to be credited to Investor Education Protection
 Fund is Rs.16,469,354 The above excludes Rs.5,766,966 interest on
 Debenture being unfunded
 
 13 Earnings per Share
 
 14. The Company is primarily engaged in one Segment i.e. EPDM rubber.
 
 15. (a) Raw Materials and Packing Materials Consumed, Consumption of
 indigenous and imported raw material and packing materials, Consumption
 of indigenous and imported stores:
 
 (b) Capacities and Production:
 
 Note: Installed capacity is as certified by the management and accepted
 by auditors, being a technical matter.
 
 16. Figures of the previous year have been re-grouped/re-arranged
 wherever necessary to conform to current year''s presentation.