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Notes to Accounts of Dalmia Bharat Sugar and Industries Ltd.

Mar 31, 2015

1. SHARE CAPITAL

(a) Terms/ rights attached to Ordinary Equity shares

The Company has only one class of ordinary equity shares having a face value of Rs. 2 per share. Each ordinary equity shareholder is entitled to one vote per share.

In the event of winding-up of the company, the ordinary equity shareholders shall be entitled to be repaid remaining assets of the company, in the ratio of the amount of capital paid up on such ordinary equity shares.

2. Long Term Borrowings

1) Debentures referred to in A above to the extent of:

10.42%, Series XII Rs. 66.67 crore (Rs. 100 crore) are secured by mortgage and first charge on pari-passu basis on all the immovable and movable assets (both current and future) excluding current assets of the sugar units of the company at Jawaharpur and Nigohi, redeemable in three yearly equal installments of Rs. 33.33 crore commencing from September 30, 2014.

2) Term Loans from Banks referred to in B (i) above to the extent of:

a) Rs. 180 crore (Rs. 190 crore) is secured by subservient charge on entire fixed assets excluding vehicles of company's sugar units at Jawaharpur and Nigohi and subsequent charge on plant & machinery at Ramgarh Sugar unit. The same is repayable in five yearly unequal installments ranging from Rs. 10 crore to Rs. 60 crore each, commencing from December 2013, carrying interest @ Base rate 1% (Presently 11.20%).

b) Rs. 217.73 crore (Rs. 167.46 crore) is secured by mortgage on immovable property being Land & Building, structure, plant & machinery of Shri Datta Sakhar Karkhana (unit Asurle Porle). The same is repayable in thirty unequal installments ranging from Rs. 4 crore to Rs. 5.50 crore each, commencing from March 2016, carrying interest @ Base rate 1.5% (Presently 11.75%).

c) Rs. 78.20 Crore (Rs. 78.20 Crore), interest free loan (availed under "Scheme for Extending Financial Assistance to Sugar Undertaking 2014" of Govt of India) is secured by second charge on pari passu basis with SDF lendors and Allahabad Bank on entire fixed assets of the company's sugar units. The same is repayable in twelve quarterly equal installments commencing from June 2016.

3) Term Loan from others referred to in B (ii) above to the extent of:

Rs. 34.33 crore (Rs. 54.04 crore) which consist of various loans and are secured by second exclusive charge on movable and immovable properties of the sugar units at Ramgarh, Jawaharpur and Nigohi. The same is repayable in unequal installments in the range of Rs. 1.33 crore to Rs. 20.08 crore per year till FY 2018-19 and carry interest in the range of 4% to 7.50%.

3. CONTINGENT LIABILITIES (NOT PROVIDED FOR) IN RESPECT OF:

(Rs. Crore)

S.No. Particulars 2014-15 2013-14

a)Claims against the Company not acknowledged 0.51 0.51 as debts

b)Demand raised by Income tax authorities under 7.44 56.62 dispute

c)Demand raised by custom, excise, entry tax, 76.15 53.25 service tax and sales tax authorities under dispute

d)Other money for which the Company is contingently 0.15 0.15 liable

e)Guarantee issued by the Company's banker on behalf of the company 13.54 2.98

Notes:

i) The Company assesses it's obligation arising in the normal course of business including pending litigations, proceedings with tax authorities and other contracts including derivative & long-term contracts. A provision for material foreseeable losses is recognised in accordance with the applicable accounting standards. Disclosure of contingent liabilities is made as applicable.

ii) Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same.

4. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS:

Gratuity

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the Balance Sheet for the plan.

Provident Fund

The Guidance note issued by Accounting Standard Board (ASB) on implementing AS 15, Employee Benefit (Revised 2005) states that provident funds set up by the employers, which require interest shortfall to be met by the employer, needs to be treated as defined benefit plan. The fund does not have any existing deficit or interest shortfall.

5. SEGMENT INFORMATION

Primary Segment: Business Segment

The Company's operating businesses are organized and managed separately according to the nature of products manufactured and services provided. The identified reportable segments are Own Manufactured Sugar, Power and Others.

The "Own Manufactured Sugar Segment" includes manufacture and marketing of Sugar.

The "power Segment" includes generation and sale of Power. Power is also used for captive consumption by the Company.

The 'Others' segment' includes Magnesite, Distillery, Travel, and Electronics activities of the Company.

The company caters mainly to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such there are no reportable Geographical Segments.

6. For the Season 2014-15, the Government of Uttar Pradesh has announced certain financial assistance including Rs. 28.60 (per quintal of cane) linked to average selling price of sugar and its by products during 1st October, 2014 to 31st May, 2015.

Based on the prevailing selling price, the Company has accounted for financial assistance of Rs. 18.48 Crore @ 8.60 (per quintal of cane)(PY. Rs. Nil) for the year.

7. The company has acquired immovable and movable properties of "Ninaidevi Sahakari Sakhar Karkhana Ltd.", Valued by the valuer at Rs. 28.46 Crores, having a capacity of 1750 TCD, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, on payment of consideration of Rs. 24.30 Crores. Besides this outstanding liabilities of Rs. 2.53 crores was also taken over and incorporated in the books of accounts and classified under current & non-current liabilities based upon the nature. Correspondingly amount of Rs. 1.63 Crores has been transferred to capital reserve.

8. Related Party Disclosure as required by Accounting Standard-18.

a) List of related parties along with nature and volume of transactions is given below:

Subsidiaries of the Company

Himshikhar Investment Limited, Dalmia Solar Power Limited and Dalmia Sugar Ventures Limited

Key Management personnel of the Company

Shri Jai Hari Dalmia- Vice-Chairman, Shri Yadu Hari Dalmia - Vice-Chairman (till 31-10-2013), Shri Gautam Dalmia - Managing Director, Shri Puneet Yadu Dalmia - Managing Director (till 31-10-2013).

Relatives of Key Management personnel

Shri V.H. Dalmia (Brother of Vice-Chairman), Shri J. H. Dalmia (HUF), Smt. Kavita Dalmia (Wife of Vice- Chairman) Shri Y H. Dalmia (HUF), Smt. Bela Dalmia (Wife of Vice-Chairman), Shri Gautam Dalmia (HUF), Smt. Anupama Dalmia (Wife of Managing Director), Smt. Avantika Dalmia (Wife of Managing Director), Kumari Shrutipriya Dalmia (Daughter of Vice-Chairman), Kumari Sukeshi Dalmia (Daughter of Managing Director), Kumari Vaidehi Dalmia (Daughter of Managing Director), Kumari Sumana Dalmia (Daughter of Managing Director), Kumari Avanee Dalmia (Daughter of Managing Director), Mst. Priyang Dalmia (Son of Managing Director), Shri M. H. Dalmia (Brother of Vice-Chairman) and Smt. Abha Dalmia (Wife of Brother of Vice-Chairman).

Enterprises controlled by the Key Management Personnel of the Company

Rama Investment Company Private Limited, Puneet Trading & Investment Company Private Limited, Kavita Trading & Investment Company Private Limited, Sita Investment Company Limited, Mayuka Investment Limited, Ankita Pratisthan Limited, Himgiri Commercial Limited, Valley Agro Industries Limited, Dalmia Refractories Limited (formerly known as Shri Nataraj Ceramic and Chemical Industries Limited, Shri Chamundeswari Minerals Limited, Shree Nirman Limited, Keshav Power Limited, Avanee and Ashni Securities Private Limited, ZipAhead.Com Limited, Alirox Abrasives Limited, Shri Investments, Sukeshi Trust, Vaidehi Trust, Sumana Trust, Shrutipriya Dalmia Trust, Priyang Trust, Avanee Trust, New Habitat Housing Finance and Development Limited, Dalmia Bharat Limited, Dalmia Power Limited, Kanika Investment Limited, Arjuna Brokers & Minerals Limited, Dalmia Cement Ventures Limited (amalgamated into Dalmia Cement Bharat Ltd w.e.f. 9-12-2013), D.I. Properties Limited, Dalmia Minerals & Properties Limited, Geetee Estates Limited, Hemshila Properties Limited, Ishita Properties Limited, ShriRadha Krishna Brokers & Holdings Limited, Shri Rangam Properties Limited, Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited, Sri Shanmugha Mines & Minerals Limited, Sri Subramanya Mines & Minerals Limited, Sri Swaminatha Mines & Minerals Limited, Sri Trivikrama Mines and Properties Limited, Adhunik Cement Limited, Calcom Cement India Limited, Adhunik MSP Cement (Assam) Limited, Vinay Cements Limited, RCL Cements Limited, SCL Cements Limited, Golden Hills Resort Private Limited, Rajputana Properties Private Limited, Cosmos Cements Limited, Sutnga Mines Private Limited, DCB Power Ventures Limited, OCL India Limited and Dalmia Cement (Bharat) Limited, Dalmia Bharat Cements Holdings Limited, Shri Rangam Securities & Holdings Limited, Khappa Coal Co. Pvt. Ltd., YHD Trusteeship Services Pvt. Limited, Shri Yadu Hari Trusteeship Services Pvt. Ltd., Vastalaya Developers Pvt. Limited, Yadu Hari Dalmia Parivar Trust, Respect Elders & Co., Love Children & Co., Respect Nature & Society, Shri Brahma Creation Trust, Shri Vishnu Preservation Trust, Shubh Homes Realtors LLP.

9. Figures less than Rs. Fifty thousand which are required to be shown separately have been shown at actual in double brackets.

10. In the opinion of the Management there is no reduction in the value of any assets, hence no provisions is required in terms of Accounting Standard AS 28 "Impairment of Assests".

11. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

12. "There are no present obligations requiring provisions in accordance with the guiding principles as enunciated in Accounting Standard (AS)-29 'Provisions, Contingent Liabilities & Contingent Assets."

13. Due to adoption of depreciation rates on the basis of useful life as prescribed under Schedule II of the Companies Act' 2013, depreciation charged for the year is higher by Rs 1.58 Cr. as compared to the depreciation rates charged during previous year. Further, written down value of fixed assets whose lives have expired as at 1st April, 2014 amounting to Rs. 4.73 Cr. have been adjusted net of tax, from retained earnings in accordance with provisions of schedule II to the Companies Act, 2013.

14. PREVIOUS YEAR COMPARATIVES

Figures in brackets pertain to previous year. Previous year's figures have been regrouped where necessary to conform to this year's classification.


Mar 31, 2014

1. Contingent Liabilities (not provided for) in respect of

(Rs. in Crore)

S. No. Particulars 2013-14 2012-13

a) Claims against the Company not acknowledged as debts 0.51 0.49

b) Demand raised by Income tax authorities under dispute 56.62 65.28

c) Demand raised by custom, excise, entry tax, service tax and sales tax authorities under dispute 53.25 56.21

d) Other money for which the Company is contingently liable 0.15 0.15

e) Guarantee issued by the Company''s banker on behalf of the company 2.98 -

Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same.

2. Operating Lease

Assets taken on Lease

Office premises are taken on operating lease. There is no escalation clause in the lease agreement.

3. Gratuity and Other Post Employment Benefit Plans:

Gratuity

The Company has defned beneft gratuity plan. Every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

4. Segment Information

Primary Segment: Business Segment

The Company''s operating businesses are organized and managed separately according to the nature of products manufactured and services provided. The identified reportable segments are Own Manufactured Sugar, Power and Others.

The "Own Manufactured Sugar Segment" includes manufacture and marketing of Sugar.

The "Power Segment" includes generation and sale of Power. Power is also used for captive consumption by the Company.

The ''Others'' Segment'' includes Magnesite, Distillery, Travel, and Electronics activities of the Company.

The company caters mainly to the needs of the domestic market. The export turnover is not signifcant in the context of total turnover. As such there are no reportable Geographical Segments.

Segment Information

The following table presents segment revenues, results, assets & liabilities in accordance with AS-17 as on March 31, 2014:

5. In the previous year, the Company had changed the method of depreciation from straight line method to written down value method with efect from 1-4-2006, for Boiler plants at Ramgarh, Jawaharpur and Nigohi on account of timely replacement of machinery due to accelerated wear and tear.

In compliance with the Accounting Standards (AS-6) notifed by Companies (Accounting Standards) Rules, 2006, (as amended), depreciation has been recomputed from the date of commissioning of these plants at WDV rates applicable to those years. Consequent to this, there was an additional charge for depreciation during the previous year of Rs. 26.83 Crore due to the said change.

Had there been no change in the method of depreciation, the charge for the previous year would have been lower by Rs. 1.22 crore, excluding the charge relating to the previous years.

Consequently, the Net Block of Fixed Assets and Reserves and Surplus was lower by Rs. 28.05 Crore in the previous year.

6. Related Party Disclosure as required by Accounting Standard-18. a) List of related parties along with nature and volume of transactions is given below:

Subsidiaries of the Company

Himshikhar Investment Limited, Dalmia Solar Power Limited and Dalmia Sugar Ventures Limited

Key Management Personnel of the Company

Shri Jai Hari Dalmia– Vice-Chairman, Shri Yadu Hari Dalmia – Vice-Chairman (till 31-10-2013), Shri Gautam Dalmia - Managing Director, Shri Puneet Yadu Dalmia – Managing Director (till 31-10-2013).

Relatives of Key Management Personnel

Shri V.H. Dalmia (Brother of Vice-Chairman), Shri J. H. Dalmia (HUF), Smt. Kavita Dalmia (Wife of Vice- Chairman), Shri Y. H. Dalmia (HUF), Smt. Bela Dalmia (Wife of Vice-Chairman), Shri Gautam Dalmia (HUF), Smt. Anupama Dalmia (Wife of Managing Director), Smt. Avantika Dalmia (Wife of Managing Director), Kumari Shrutipriya Dalmia (Daughter of Vice-Chairman), Kumari Sukeshi Dalmia (Daughter of Managing Director), Kumari Vaidehi Dalmia (Daughter of Managing Director), Kumari Sumana Dalmia (Daughter of Managing Director), Kumari Avanee Dalmia (Daughter of Managing Director), Mst. Priyang Dalmia (Son of Managing Director) Shri M. H. Dalmia (Brother of Vice-Chairman) and Smt. Abha Dalmia (Wife of Brother of Vice-Chairman).

Enterprises controlled by the Key Management Personnel of the Company

Rama Investment Company Private Limited, Puneet Trading & Investment Company Private Limited, Kavita Trading & Investment Company Private Limited, Sita Investment Company Limited, Mayuka Investment Limited, Ankita Pratisthan Limited, Himgiri Commercial Limited, Valley Agro Industries Limited, Dalmia Refractories Limited (formerly known as Shri Nataraj Ceramic and Chemical Industries Limited, Shri Chamundeswari Minerals Limited, Shree Nirman Limited, Keshav Power Limited, Avanee and Ashni Securities Private Limited, ZipAhead.Com Limited, Alirox Abrasives Limited, Shri Investments, Sukeshi Trust, Vaidehi Trust, Sumana Trust, Shrutipriya Dalmia Trust, Priyang Trust, Avanee Trust, New Habitat Housing Finance and Development Limited, Dalmia Bharat Limited, Dalmia Power Limited, Kanika Investment Limited, Arjuna Brokers & Minerals Limited, Dalmia Cement Ventures Limited (amalgamated into Dalmia Cement Bharat Ltd w.e.f. 9-12-2013), D.I. Properties Limited, Dalmia Minerals & Properties Limited, Geetee Estates Limited, Hemshila Properties Limited, Ishita Properties Limited, ShriRadha Krishna Brokers & Holdings Limited, Shri Rangam Properties Limited, Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited, Sri Shanmugha Mines & Minerals Limited, Sri Subramanya Mines & Minerals Limited, Sri Swaminatha Mines & Minerals Limited, Sri Trivikrama Mines and Properties Limited, Adhunik Cement Limited, Calcom Cement India Limited, Adhunik MSP Cement (Assam) Limited, Vinay Cements Limited, RCL Cements Limited, SCL Cements Limited, Golden Hills Resort Private Limited, Rajputana Properties Private Limited, Cosmos Cements Limited, Sutnga Mines Private Limited, DCB Power Ventures Limited, OCL India Limited and Dalmia Cement (Bharat) Limited, Dalmia Bharat Cements Holdings Limited, Shri Rangam Securities & Holdings Limited, Khappa Coal Co. Pvt. Ltd., YHD Trusteeship Services Pvt. Limited, Shri Yadu Hari Trusteeship Services Pvt. Ltd., Vastalaya Developers Pvt. Limited, Yadu Hari Dalmia Parivar Trust, Respect Elders & Co., Love Children & Co., Respect Nature & Society, Shri Brahma Creation Trust, Shri Vishnu Preservation Trust, Shubh Homes Realtors LLP.

1. Sale of goods and services includes transaction with Dalmia Cement (Bharat) Limited Rs. 2.15 Crore (Rs. 0.21 Crore), OCL India Limited Rs. 0.29 Crore (Rs. 0.46 Crore), Dalmia Bharat Limited Rs. 3.64 Crore (Rs. 3.33 Crore) and Adhunik Cement Limited Rs. 0.88 Crore (Rs. NIL).

2. Reimbursement of expenses – receivable includes transaction with Dalmia Bharat Limited Rs. 0.04 Crore (Rs. 0.03 Crore), Dalmia Cement (Bharat) Limited Rs. 0.04 Crore (Rs. 0.05 Crore).

3. Reimbursement of expenses – payable includes transaction with Dalmia Bharat Limited Rs. 0.22 Crore (Rs. 0.40 Crore) and Dalmia Cement (Bharat) Limited Rs. 0.02 Crore (Rs. 0.05 Crore), DCB Power Ventures Limited Rs. 0.05 Crore (Rs. NIL).

4. Purchase of goods & services includes transaction with Dalmia Bharat Limited Rs. 9.58 Crore (Rs. 10.19 Crore) and Dalmia Cement (Bharat) Limited Rs. 1.40 Crore (Rs. 0.66 Crore).

5. Rent payment includes transaction with Ishita Properties Limited Rs. 0.01 Crore (Rs. 0.01 Crore).

6. Loans and advances given represent transaction with Dalmia Solar Power Limited Rs. 0.01 Crore (Rs. 7.23 Crore).

7. Loans taken includes transaction with Dalmia Bharat Limited Rs. 75.50 Crore (Rs. 127.25 Crore) and DCB Power Ventures Limited Rs. 15.00 Crore (Rs. 26.00 Crore).

8. Loans repaid includes transaction with Dalmia Bharat Limited Rs. 70.50 Crore (Rs. 132.25 Crore), DCB Power Ventures Limited Rs. 18.00 Crore (Rs. 7.00 Crore).

9. Sale of fixed assets includes transaction with Dalmia Cement (Bharat) Limited Rs. 0.09 (Rs. NIL) and Dalmia Bharat Limited Rs. 0.03 Crore (Rs. 0.04 Crore).

10. Receipt of fund on their behalf and transfer includes transaction with Dalmia Bharat Limited Rs. 0.06 Crore (Rs. 0.03 Crore).

11. Interest paid on loans includes transaction with Dalmia Bharat Limited Rs. 7.82 Crore (Rs. 2.47 Crore) and DCB Power Ventures Limited Rs. 2.50 Crore (Rs. 0.57 Crore).

12. Salary and perquisites includes transaction with Shri J. H. Dalmia Rs. 0.39 Crore (Rs. 0.42 Crore), Shri Y. H. Dalmia Rs. 1.11 Crore (Rs. 0.41 Crore), Shri Gautam Dalmia Rs. 0.04 Crore (Rs. 0.05 Crore), Shri Puneet Yadu Dalmia Rs. 0.05 Crore (Rs. 0.07 Crore).

13. Dividend received represent dividend from Dalmia Bharat Limited Rs. 0.19 Crore (Rs. 0.14 Crore).

14. Dividend paid represent dividend paid to Dalmia Bharat Limited Rs. 0.37 Crore (Rs. NIL).

2 Loans payable includes Dalmia Bharat Limited Rs. 50.00 Crore (Rs. 45.00 Crore) and DCB Power Ventures Limited Rs. 16.00 Crore (Rs. 19.00 Crore).

3 Interest payable includes Dalmia Bharat Limited Rs. 1.44 Crore (Rs. 1.25 Crore) and DCB Power Ventures Limited Rs. 0.37 Crore (Rs. 0.51 Crore).

4 Amount receivable includes Dalmia Cement (Bharat) Limited Rs. 0.15 Crore (Rs. 0.09 Crore).

5 Amount payable includes Dalmia Cement (Bharat) Limited Rs. 0.01 Crore (Rs. 0.06 Crore), Dalmia Bharat Limited Rs. 2.27 Crore (Rs. 3.80 Crore) and DCB Power Ventures Limited Rs. 0.06 Crore (Rs. 0.01 Crore).

8. In the previous year, the company acquired immovable and movable property of "M/s Shri Datta Sahakari Sakhar Karkhana Limited", Distt. Kolhapur, Maharashtra, having a capacity of 2500 TCD, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, on payment of consideration of Rs. 108.00 Crore. Besides this outstanding liabilities of Rs. 17.48 crore consisting of unsecured loan, sales tax dues & employees dues etc. were also taken over and incorporated in the books of account & classified under current & non-current liabilities based upon the tenor of maturity.

9. Figures less than Rs. Fifty thousand which are required to be shown separately have been shown at actual in double brackets.

10. Previous year Comparatives

Figures in brackets pertain to previous year. Previous year''s figures have been regrouped where necessary to conform to this year''s classification.


Mar 31, 2013

1. Contingent Liabilities (not provided for) in respect of:

(Rs. Crore)

S. No. Particulars 2012-13 2011-12

a) Claims against the Company not acknowledged as debts 0.49 0.55

b) Demand raised by Income tax authorities under dispute 65.28 58.40

c) Demand raised by custom, excise, entry tax, service tax and sales tax authorities 56.21 44.35 under dispute

d) Other money for which the Company is contingently liable 0.15 0.15

Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same

2. The Company has changed the method of changing depreciation from straight line method to written down value method with effect from April 1, 2006,for Boiler plants at Ramgarh, Jawaharpur and Nigohi considering that there is higher wear and tear in the concerned equipment and that the revised carrying values approximates the current replacement values.

In compliance with the Accounting Standards (AS-6) notified by Companies (Accounting Standards) Rules, 2006, (as amended), depreciation has been recomputed from the date of commissioning of these plants at WDV rates applicable to those year Consequent to this, there is an additional charge for depreciation during the year of Rs.26.83 crore which relates to the previous year

Had there been no change in the method of depreciation, the charge for the year would have been lower by Rs.1.22 crore, excluding the charge relating to the previous year

Consequently, the net block of fixed assets and profit for the year are lower by Rs.28.05 crore.

3. Gratuity and Other Post Employment Beneft Plans:

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

4. Segment Information

Primary Segment: Business Segment

The Company''s operating businesses are organized and managed separately according to the nature of products manufactured and services provided. The identified reportable segments are Own Manufactured Sugar, Power and Other

The "Own Manufactured Sugar Segment" includes manufacture and marketing of Sugar.

The "Power Segment" includes generation and sale of Power. Power is also used for captive consumption by the Company.

The ''Others'' segment'' includes Magnesite, Distillery, Travel, and Electronics activities of the Company.

The company caters mainly to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such there are no reportable Geographical Segments.

5. The company had given advance of Rs.9.50 crore to its wholly owned subsidiary company, "Dalmia Solar Power Limited" for its solar power business. However, the subsidiary company has abandoned its only project of 10MW Solar Power Project during the year. Hence, advance amounting to Rs.8.92 crore has been written off considering the financial position & future business viability of the subsidiary company.

6. During the year, the company acquired immovable and movable property of "M/s Shri Datta Sahakari Sakhar Karkhana Limited", Distt. Kolhapur, Maharashtra, having a capacity of 2500 TCD, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, on payment of consideration of Rs.108.00 crore. Besides this outstanding liabilities of Rs.17.48 crore consisting of unsecured loan, sales tax dues & employees dues etc. have also been incorporated in the books of account & classified under current & non-current liabilities based upon the tenor of maturity. The capital reserve of Rs.1.41 crore being the difference between net assets acquired and consideration paid, has also been recorded consequent to the Independent valuer report. Pro-rata depreciation on its assets has been charged from the date of taking over the possession.

7. Related Party Disclosure as required by Accounting Standard-18.

a) List of related parties along with nature and volume of transactions is given below:

Subsidiaries of the Company

Himshikhar Investment Limited, Dalmia Solar Power Limited and Dalmia Sugar Ventures Limited

Key Management Personnel of the Company

Shri Jai Hari Dalmia– Vice-Chairman, Shri Yadu Hari Dalmia – Vice-Chairman, Shri Gautam Dalmia - Managing Director, Shri Puneet Yadu Dalmia – Managing Director.

Relatives of Key Management Personnel

Shri V.H. Dalmia (Brother of Vice-Chairman), Shri J.H. Dalmia (HUF), Smt. Kavita Dalmia (Wife of Vice- Chairman) Shri Y.H. Dalmia (HUF), Smt. Bela Dalmia (Wife of Vice-Chairman), Shri Gautam Dalmia (HUF), Smt. Anupama Dalmia (Wife of Managing Director), Smt. Avantika Dalmia (Wife of Managing Director), Kumari Shrutipriya Dalmia (Daughter of Vice-Chairman), Kumari Sukeshi Dalmia (Daughter of Managing Director), Kumari Vaidehi Dalmia (Daughter of Managing Director), Kumari Sumana Dalmia (Daughter of Managing Director), Kumari Avanee Dalmia (Daughter of Managing Director), Mst. Priyang Dalmia (Son of Managing Director) Shri M.H. Dalmia (Brother of Vice-Chairman) and Smt. Abha Dalmia (Wife of Brother of Vice-Chairman).

Enterprises controlled by the Key Management Personnel of the Company

Rama Investment Company Private Limited, Puneet Trading & Investment Company Private Limited, Kavita Trading & Investment Company Private Limited, Sita Investment Company Limited, Mayuka Investment Limited, Ankita Pratisthan Limited, Himgiri Commercial Limited, Valley Agro Industries Limited, Shri Nataraj Ceramic and Chemical Industries Limited, Shri Chamundeswari Minerals Limited, Shree Nirman Limited, Keshav Power Limited, Avanee and Ashni Securities Private Limited, ZipAhead.Com Limited, Alirox Abrasives Limited, Shri Investments, Sukeshi Trust, Vaidehi Trust, Sumana Trust, Shrutipriya Dalmia Trust, Priyang Trust, Avanee Trust, New Habitat Housing Finance and Development Limited, Dalmia Bharat Limited, Dalmia Power Limited, Kanika Investment Limited, Arjuna Brokers & Minerals Limited, Dalmia Cement Ventures Limited, D.I. Properties Limited, Dalmia Minerals & Properties Limited, Geetee Estates Limited, Hemshila Properties Limited, Ishita Properties Limited, Shri Radha Krishna Brokers & Holdings Limited, Shri Rangam Properties Limited, Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited, Sri Shanmugha Mines & Minerals Limited, Sri Subramanya Mines & Minerals Limited, Sri Swaminatha Mines & Minerals Limited, Sri Trivikrama Mines and Properties Limited, Adhunik Cement Limited, Calcom Cement India Limited, Adhunik MSP Cement (Assam) Limited, Vinay Cements Limited, RCL Cements Limited, SCL Cements Limited, Golden Hills Resort Private Limited, Rajputana Properties Private Limited, Cosmos Cements Limited, Sutnga Mines Private Limited, DCB Power Ventures Limited, OCL India Limited and Dalmia Cement (Bharat) Limited.

1. Sale of goods and services includes transaction with Dalmia Cement (Bharat) Limited Rs.0.21 crore (Rs.0.53 crore), OCL India Limited Rs.0.46 crore (Rs.4.59 crore) and Dalmia Bharat Limited Rs.3.33 crore (Rs.1.14 crore).

2. Reimbursement of expenses – receivable includes transaction with Dalmia Bharat Limited Rs.0.03 crore (Rs.0.05 crore), Dalmia Cement (Bharat) Limited Rs.0.05 crore (Rs.0.14 crore).

3. Reimbursement of expenses – payable includes transaction with Dalmia Bharat Limited Rs.0.40 crore (Rs.0.20) and Dalmia Cement (Bharat) Limited Rs.0.05 crore (Rs.0.10 crore).

4. Purchase of goods & services includes transaction with Dalmia Bharat Limited Rs.10.19 crore (Rs.5.75 crore), Dalmia Cement (Bharat) Limited Rs.0.66 crore (Rs. Nil) and Shri Natraj Ceramics and Chemical Industries Limited Rs.0.03 crore (Rs. Nil).

5. Rent payment includes transaction with Ishita Properties Limited Rs.0.01 crore (Rs. Nil).

6. Loans and advances given include transaction with Dalmia Solar Power Limited Rs.7.23 crore (Rs.0.45 crore).

7. Loan taken includes transaction with Dalmia Bharat Limited Rs.127.25 crore (Rs.166.00 crore) and DCB Power Ventures Limited Rs.26.00 crore (Rs.56 crore).

8. Loan refund includes transaction with Dalmia Bharat Limited Rs.132.25 crore (Rs.141.00 crore), DCB Power Ventures Limited Rs.7.00 crore (Rs.56 crore).

9. Sale of fixed assets includes transaction with Dalmia Cement (Bharat) Limited Rs. Nil (Rs.0.01 crore) and Dalmia Bharat Limited Rs.0.04 crore (Rs. Nil).

10. Receipt of fund on their behalf and transfer includes transaction with Dalmia Bharat Limited Rs.0.03 crore (Rs. Nil).

11. Purchase of fixed assets includes transaction with Dalmia Cement (Bharat) Limited Rs. Nil (Rs.0.01 crore).

12. Interest paid on loan includes transaction with Dalmia Bharat Limited Rs.2.47 crore (Rs.3.73 crore) and DCB Power Ventures Limited Rs.0.57 crore (Rs. Nil).

13. Salary and perquisites includes transaction with Shri J. H. Dalmia Rs.0.42 crore (Rs.0.26 crore), Shri Y. H. Dalmia Rs.0.41 crore (Rs.0.26 crore), Shri Gautam Dalmia Rs.0.05 crore (Rs.0.26 crore), Shri Puneet Yadu Dalmia Rs.0.07 crore (Rs.0.26 crore).

14. Dividend received is on account of Dalmia Bharat Limited Rs.0.14 crore (Rs.Nil).

8. Figures less than r Fifty thousand which are required to be shown separately have been shown at actual in double brackets.

9. Previous Year Comparatives


Mar 31, 2012

(a) Terms/ Rights attached to Ordinary Shares

The Company has only one class of Ordinary Shares having a face value of Rs2 per share. Each Ordinary Shareholder is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2012 the amount of dividend per share recognised as distribution to ordinary shareholders was Rs Nil (Rs0.25).

In the event of winding-up of the company, the ordinary shareholders shall be entitled to be repaid remaining assets of the company, in the ratio of the amount of capital paid up on such ordinary shares.

1) Debentures referred to in A above to the extent of :

10.26%, Series XII Rs100.00 crore (Rs100.00 crore) are secured by mortgage and charge on first pari-passu basis on all the immovable and movable assets excluding current assets, both present and future, of the Company's sugar unit at Jawaharpur & Nigohi and redeemable in three yearly equal instalments commencing from September 30, 2014.

2) Term Loans from Banks referred to in B (i) above to the extent of :

Rs200.00 crore (Rs200.00 crore) is secured by subservient charge on entire fixed assets excluding vehicles of sugar units at Jawaharpur and Nigohi and subservient charge on plant & machinery at Ramgarh Sugar unit. The same is repayable in five yearly unequal instalments in the range of Rs30 crore to Rs50 crore each commencing from December 2013, carrying interest @ Base rate 1% (present 11.75%).

3) Nil (Rs14.12 crore) is secured by residual charge on the movable and immovable fixed assets of the sugar units.

4) Term Loan from Others referred to in B (ii) above to the extent of :

Rs83.98 crore (Rs88.99 crore) which consist of various loans and are secured by second exclusive charge on movable and immovable properties of the sugar unit at Ramgarh, Jawaharpur and Nigohi. The same is repayable in unequal instalments in the range of Rs1.33 crore to Rs20.08 crore per year till FY 2017-18 and carry interest in the range of 4% to 7.50%.

(i) Working capital Loan from Banks are secured by hypothecation of inventories and other assets in favour of the participating banks ranking pari passu on inter-se-basis, repayable during next one year and carrying interest in the range of 11% to 11.75%.

(ii) Short term Loans from Banks are secured by hypothecation of receivables. It is repayable during next one year and carry interest in the range of 10.75% to 11%.

(iii) Short term Loans from Related Parties are repayable during next one year and carry interest @ 10%.

5. Contingent Liabilities (not provided for) in respect of:

(Rs in Crore)

S.No. Particulars 2011-12 2010-11

a) Claims against the Company not acknowledged as debts 0.55 0.82

b) Demand raised by Income tax authorities under dispute 58.40 20.72

c) Demand raised by custom, excise, entry tax, service tax and sales tax authorities 44.35 22.75 under dispute

d) Other money for which the Company is contingently liable 0.15 0.15

Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same.

6. Gratuity and Other Post Employment Benefit Plans:

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the plan.

Statement of Profit and Loss

Net employee benefit expense (recognised in Employee benefit Expenses)

Provident Fund

The Guidance note issued by Accounting Standard Board (ASB) on implementing AS 15, Employee Benefit (Revised 2005) states that provident funds set up by the employers, which require interest shortfall to be met by the employer, needs to be treated as defined benefit plan. The fund does not have any existing deficit or interest shortfall.

7. Segment Information

Primary Segment: Business Segment

The Company's operating businesses are organized and managed separately according to the nature of products manufactured and services provided. The identified reportable segments are Own Manufactured Sugar, Power and Others.

The "Own Manufactured Sugar Segment" includes manufacture and marketing of Sugar.

The "Power Segment" includes generation and sale of Power. Power is also used for captive consumption by the Company.

The 'Others' segment' includes Magnesite , Distillery, Travel, and Electronics activities of the Company.

The company caters mainly to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such there are no reportable Geographical Segments.

8. During the preceding previous year, the Company had incurred some expenditure related to acquisition/construction of fixed assets and therefore accounted for the same under Capital work in progress. Details of the expenses capitalised and carried forward as capital work in progress are given below:

9. Related Party Disclosure as required by Accounting Standard-18.

a) List of related parties along with nature and volume of transactions is given below:

Subsidiaries of the Company

Himshikhar Investment Limited, Dalmia Solar Power Limited and Dalmia Sugar Ventures Limited Key Management Personnel of the Company

Shri Jai Hari Dalmia- Vice-Chairman, Shri Yadu Hari Dalmia - Vice-Chairman, Shri Gautam Dalmia - Managing Director, Shri Puneet Yadu Dalmia - Managing Director.

Relatives of Key Management Personnel

Shri V.H. Dalmia (Brother of Vice-Chairman), Shri J.H.Dalmia (HUF), Smt. Kavita Dalmia (Wife of Vice- Chairman) Shri Y.H.Dalmia (HUF), Smt. Bela Dalmia (Wife of Vice-Chairman), Shri Gautam Dalmia (HUF), Smt. Anupama Dalmia (Wife of Managing Director), Smt. Avantika Dalmia (Wife of Managing Director), Kumari Shrutipriya Dalmia (Daughter of Vice- Chairman), Kumari Sukeshi Dalmia (Daughter of Managing Director), Kumari Vaidehi Dalmia (Daughter of Managing Director), Kumari Sumana Dalmia (Daughter of Managing Director), Kumari Avanee Dalmia (Daughter of Managing Director), Mst. Priyang Dalmia (Son of Managing Director), Shri M.H.Dalmia (Brother of Vice-Chairman) and Smt. Abha Dalmia (Wife of Brother of Vice-Chairman).

Enterprises controlled by the Key Management Personnel of the Company

Rama Investment Company Private Limited, Puneet Trading & Investment Company Private Limited, Kavita Trading & Investment Company Private Limited, Sita Investment Company Limited, Mayuka Investment Limited, Ankita Pratisthan Limited, Himgiri Commercial Limited, Valley Agro Industries Limited, Shri Nataraj Ceramic and Chemical Industries Limited, Shri Chamundeswari Minerals Limited, Shree Nirman Limited, Keshav Power Private Limited, Avanee and Ashni Securities Private Limited, ZipAhead.Com Limited, Alirox Abrasives Limited, Sukeshi Trust, Vaidehi Trust, Sumana Trust, Shrutipriya Dalmia Trust, Priyang Trust, Avanee Trust, New Habitat Housing Finance and Development Limited, Dalmia Bharat Enterprises Limited, Dalmia Power Limited, Kanika Investment Limited, Arjuna Brokers & Minerals Limited, Dalmia Cement Ventures Limited, D.I. Properties Limited, Dalmia Minerals & Properties Limited, Geetee Estates Limited, Hemshila Properties Limited, Ishita Properties Limited, Shri Radha Krishna Brokers & Holdings Limited, Shri Rangam Properties Limited, Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited, Sri Shanmugha Mines & Minerals Limited, Sri Subramanya Mines & Minerals Limited, Sri Swaminatha Mines & Minerals Limited, Sri Trivikrama Mines and Properties Limited, Golden Hills Resort Private Limited, Rajputana Properties Private Limited, Cosmos Cements Limited, Sutnga Mines Private Limited, DCB Power Ventures Limited, OCL India Limited and Dalmia Cement (Bharat) Limited.

1. Sale of goods and services includes transaction with Dalmia Cement (Bharat) Limited Rs0.53 Crore (Rs2.86 Crore), OCL India Limited Rs4.59 Crore (Rs2.99 Crore) and Dalmia Bharat Enterprises Limited Rs1.14 Crore (Rs1.12 Crore).

2. Reimbursement of expenses - receivable includes transaction with Dalmia Bharat Enterprises Limited Rs0.05 Crore (Rs0.23 Crore), Dalmia Cement (Bharat) Limited Rs0.14 Crore (Rs0.42 Crore) and Dalmia Solar Power Limited Rs Nil (Rs0.16 Crore).

3. Reimbursement of expenses - payable includes transaction with Dalmia Bharat Enterprises Limited Rs0.20 Crore (Rs Nil) and Dalmia Cement (Bharat) Limited Rs0.10 Crore (Rs1.85 Crore).

4. Purchase of goods & services includes transaction with Dalmia Bharat Enterprises Limited Rs5.75 Crore (Rs5.42 Crore).

5. Rent payment includes transaction with Ishita Properties Limited Rs Nil (Rs0.03 Crore) and Dalmia Bharat Enterprises Limited Rs Nil (Rs0.07 Crore).

6. Loans and advances given includes transaction with Dalmia Solar Power Limited Rs0.45 Crore (Rs1.27 Crore).

7. Loan taken includes transaction with Dalmia Bharat Enterprises Limited Rs166.00 Crore (Rs189.20 Crore) and DCB Power Ventures Limited Rs56.00 Crore (Rs Nil).

8. Loan refund includes transaction with Dalmia Bharat Enterprises Limited Rs141.00 Crore (Rs164.20 Crore) and DCB Power Ventures Limited Rs56.00 Crore (Rs Nil).

9. Loan and advances received back includes transaction with Dalmia Solar Power Limited Rs Nil (Rs2.56 Crore) and Dalmia Sugar Ventures Ltd. Rs Nil (Rs0.99 Crore).

10. Sale of fixed assets includes transaction with Dalmia Cement (Bharat) Limited Rs0.01 Crore (Rs Nil).

11. Receipt of fund on their behalf and transfer includes transaction with Dalmia Bharat Enterprises Limited Rs Nil (Rs20.84 Crore) and Dalmia Cement (Bharat) Limited Rs Nil (Rs229.72 Crore).

12. Purchase of fixed assets includes transaction with Dalmia Cement (Bharat) Limited Rs0.01 Crore (Rs Nil) and Dalmia Bharat Enterprises Limited Rs Nil (Rs0.24 Crore).

13. Interest paid on loan includes transaction with Dalmia Bharat Enterprises Limited Rs3.73 Crore (Rs1.77 Crore).

14. Salary and perquisites includes transaction with Shri J. H. Dalmia Rs0.26 Crore (Rs0.52 Crore), Shri Y H. Dalmia Rs0.26 Crore (Rs0.51 Crore), Shri Gautam Dalmia Rs0.26 Crore (Rs0.48 Crore), Shri Puneet Yadu Dalmia Rs0.26 Crore (Rs0.46 Crore).

1 Loan receivable includes Dalmia Solar Power Limited Rs2.27 Crore (Rs1.82 Crore).

2 Loan payable includes Dalmia Bharat Enterprises Limited Rs50.00 Crore (Rs25.00 Crore).

3 Amount receivable includes Dalmia Bharat Enterprises Limited Rs0.20 Crore (Rs Nil), Dalmia Cement (Bharat) Limited Rs0.23 Crore (Rs4.85 Crore) and OCL India Limited Rs0.05 Crore (Rs Nil)

4 Amount payable includes Dalmia Cement (Bharat) Limited Rs0.01 Crore (Rs Nil), Dalmia Bharat Enterprises Limited Rs Nil (Rs29.09 Crore) and Himshikhar Investment Limited Rs Nil (Rs1.13 Crore).

10. Presentation and Disclosure of Financial Statements

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the figures in accordance with the requirements applicable in the current year.

11. Figures less than ' Fifty thousand which are required to be shown separately have been shown at actual in double brackets.

12. Previous Year Comparatives

Figures in brackets pertain to previous year. Previous year's figures have been regrouped where necessary to conform to this year's classification.


Mar 31, 2011

1. Contingent liabilities (not provided for) in respect of: (Rs Million) Sl. Particulars 2010-11 2009-10

a) Claims against the Company not 8.22 386.69 acknowledged as debts

b) Guarantees/Counter Guarantees - 14.70 given to banks on account of loans given by the banks to Bodies Corporate

c) Demand raised by Income tax 207.22 111.16 authorities in dispute

d) Demand raised by custom, 227.51 729.29 excise, entry tax, service tax and sales tax authorities in dispute

e) Other money for which the 1.50 11.93 Company is contingently liable

Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same.

2. Computation of net profit in accordance with Section 349 of the Companies Act, 1956 for calculation of commission payable to Directors:

3. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

4. Operating Lease

Assets taken on lease

Office premises are obtained on operating lease. The lease term is for 3 years. There is no escalation clause in the lease agreement.

Assets given on lease

The Company had leased out building, plant and machinery etc on operating lease during the earlier period. The lease term was for 10 years and thereafter not renewable. There was no escalation clause in the lease agreement. There were no restrictions imposed by lease arrangements. Contingent rent recognized in the Profit & Loss Account for the year was Rs Nil (RsNil).

Difference in quantitative tally is on account of captive consumption/ shortage/excess/damages etc.

5. Gratuity and Other Post Employment Benefit Plans

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The estimates of future salary increases, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Provident Fund

The Guidance note issued by Accounting Standard Board (ASB) on implementing AS 15, Employee Benefit (Revised 2005) states that provident funds set up by the employers, which require interest shortfall to be met by the employer, needs to be treated as defined benefit plan. The fund does not have any existing deficit or interest shortfall. In regard to any future obligation arising due to interest shortfall (i.e. government interest to be paid on provident fund scheme exceeds rate of interest earned on investment), pending the issuance of Guidance Note from the actuarial society of India, the Company's actuary has expressed his inability to reliably measure the same.

6. Segment Information

Primary Segment: Business Segment

The Company's operating businesses are organized and managed separately according to the nature of products manufactured and services provided. The identified reportable segments are Own Manufactured Sugar, Power and Others.

The "Own Manufactured Sugar Segment" includes manufacture and marketing of Sugar.

The "Power Segment" includes generation and sale of Power. Power is also used for captive consumption by the Company

The 'Others' segment' includes Magnesite , Distillery, Travel, and Electronics activities of the Company.

The company caters mainly to the needs of the domestic market. The export turnover is not significant in the context of total turnover. As such there are no reportable Geographical Segments.

7. Related Party Disclosure as required by Accounting Standard-18.

a) List of related parties along with nature and volume of transactions is given below:

Subsidiaries of the Company

Himshikhar Investment Limited, Dalmia Solar Power Limited and Dalmia Sugar Ventures Limited

Key Management Personnel of the Company

Shri J.H.Dalmia- Vice-Chairman, Shri Y.H.Dalmia - Vice-Chairman, Shri Gautam Dalmia - Managing Director, Shri Puneet Yadu Dalmia - Managing Director and Shri T. Venkatesan - Whole Time Director (upto October 31, 2010).

Relatives of Key Management Personnel

Shri V.H. Dalmia (Brother of Vice-Chairman), J.H.Dalmia (HUF), Smt. Kavita Dalmia (Wife of Vice- Chairman), Y.H.Dalmia (HUF), Smt. Bela Dalmia (Wife of Vice-Chairman), Shri Gautam Dalmia (HUF), Smt. Anupama Dalmia (Wife of Managing Director), Smt. Avantika Dalmia (Wife of Managing Director), Kumari Shrutipriya Dalmia (Daughter of Vice-Chairman), Kumari Sukeshi Dalmia (Daughter of Managing Director ), Kumari Vaidehi Dalmia (Daughter of Managing Director), Kumari Sumana Dalmia (Daughter of Managing Director), Kumari Avanee Dalmia (Daughter of Managing Director), Mst. Priyang Dalmia (Son of Managing Director) Shri M.H.Dalmia (Brother of Vice-Chairman) and Smt. Abha Dalmia (Wife of Brother of Vice-Chairman) and Smt. Kala Venkatesan (Wife of Whole Time Director (upto October 31, 2010)

Associate of the Company OCL India Limited (upto March 31, 2010)

Joint Venture of the Company Khappa Coal Company Private Limited (upto March 31, 2010)

Enterprises controlled by the Key Management Personnel of the Company

Rama Investment Company Private Limited, Puneet Trading & Investment Company Private Limited, Kavita Trading & Investment Company Private Limited, Sita Investment Company Limited, Mayuka Investment Limited, Ankita Pratisthan Limited, Himgiri Commercial Limited, Valley Agro Industries Limited, Shri Nataraj Ceramic and Chemical Industries Limited, Shri Chamundeswari Minerals Limited, Shree Nirman Limited, Keshav Power Private Limited, Avanee and Ashni Securities Private Limited, ZipAhead.Com Limited, Alirox Abrasives Limited, Sukeshi Trust, Vaidehi Trust, Sumana Trust, Shrutipriya Dalmia Trust, Priyang Trust, Avanee Trust, New Habitat Housing Finance and Development Limited, Dalmia Bharat Enterprises Limited, Dalmia Power Limited, Kanika Investment Limited ,Arjuna Brokers & Minerals Limited, Dalmia Cement Ventures Limited, D.I. Properties Limited, Dalmia Minerals & Properties Limited, Geetee Estates Limited, Hemshila Properties Limited, Ishita Properties Limited, Shri Radha Krishna Brokers & Holdings Limited, Shri Rangam Properties Limited, Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited, Sri Shanmugha Mines & Minerals Limited, Sri Subramanya Mines & Minerals Limited, Sri Swaminatha Mines & Minerals Limited, Sri Trivikrama Mines and Properties Limited, Golden Hills Resort Private Limited, Rajputana Properties Private Limited, Cosmos Cements Limited,Sutnga Mines Private Limited, DCB Power Ventures Limited, OCL India Limited and Dalmia Cement (Bharat) Limited.

8. Figures less than Rs Five Thousand which are required to be shown separately have been shown at actual in double brackets.

9. A Scheme of Arrangement between the Company, Dalmia Cement (Bharat) Limited [formerly known as Avnija Properties Limited], Dalmia Bharat Enterprises Limited, DCB Power Ventures Limited and their respective shareholders and creditors under section 391 -394 of Companies Act, 1956, has been sanctioned by Hon'ble High Court of Madras on July 29, 2010 and made effective on September 1, 2010. Consequently, in terms of aforesaid Scheme, the Cement business, Thermal Power business and Refractory business (the "Demerged Undertakings") has been transferred to the respective resulting Company effective from 1st April 2010. In view of this, figures for previous year are strictly not comparable.

As per the accounting treatment detailed in the scheme, the Company has reduced the undermentioned assets and liabilities of Demergered Undertakings, pursuant to the Scheme, at their respective book values as on the Appointed Date, i.e., April 1, 2010. The Company has debited an amount equal to the difference between book values of assets and liabilities of the Demerged Undertaking from Share Premium Account, General Reserve, Surplus in Profit and Loss Account. The details of the same are as follows:

As per the aforesaid Scheme of Arrangement, the shareholders of the Company as on the record date, i.e., 27-9-2010 received one share of Dalmia Bharat Enterprises Limited for every one share held by them in this Company.

10. Previous Year Comparatives

Figures in brackets pertain to previous year. Previous year's figures have been regrouped where necessary to conform to this year's classification.


Mar 31, 2010

1. Contingent liabilities (not provided for) in respect of:

(Rs. in Million)

S. No.Particulars 2009-10 2008-09

a) Claims against the 386.69 200.69 Company not ackno wledged asdebts

b) Guarantees/Counter 14,70 240.00 Guarantees given to banks on account of loans given by the banks to Bodies Corporate

c) Demand raised by 111.16 76.90 Income tax authorities indispute d) Demand raised by 729.29 582.95 custom, excise, entry tax, service tax and sales tax authorities in dispute

e) Other money for 11.93 2.98 which the Company is contingently liable

f) Uncalled Liability - 42.24 on Partly Paid up Units

Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same.

2. Computation of net profit in accordance with Section 349 of the Companies Act, 1956 for calculation of commission payable to Directors:

As the liabilities for gratuity and leave encashment are provided on an actuarial basis for the Company as a whole, the amounts pertainingtothedirectorsarenotincludedabove.

3. In the opinion of the Board and to the best of their knowledge and belief, the value on realisation of loans, advances and currentassetsin the ordinarycourse of business willnotbe less than theamountatwhichtheyarestatedintheBalanceSheet.

4. Operating Lease Assets taken on lease

Office premises are obtained on operating lease. The lease term is for 3 years. There is no escalation clause in the lease agreement.

Assets given on lease

The Company has leased out building, plant and machinery etc on operating lease. The lease term is for 10 years and thereafter not renewable. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. Contingent rentrecognized in the Profit & Loss Account for the year was (Rs.Nil) (Rs.Nil).

5. Gratuity and Other Post Employment Benefit Plans Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balances heet for the plan.

Profit and Loss Account

Net employee benefit expense (recognised in Personnel Expenses)

Provident Fund

The Guidance note issued by Accounting Standard Board (ASB) on implementing AS 15, Employee Benefit (Revised 2005) states that provident funds set up by the employers, which require interest shortfall to be met by the employer, needs to be treated as defined benefit plan. The fund does not have any existing deficit or interest shortfall. In regard to any future obligation arising due to interest shortfall (i.e. government interest to be paid on provident fund scheme exceeds rate of interest earned on investment), pending the issuance of Guidance Note from the actuarial society of India, the Companys actuary has expressed his inability to reliably measure the same.

6. Segment Information

Primary Segment: Business Segment

The Companys operating businesses are organized and managed separately according to the nature of products manufactured and services provided. The four identified reportable segments are Own Manufactured Cements, Own Manufactured Sugar, Powerand Others.

The"Own Manufactured Cementand Sugar Segmenfincludesmanufactureand marketing ofCement and Sugar.

The "Power Segmenf includes generation and sale of Power. Power is al so used for captive consumption by the Company The Otherssegmentincludes Magnesite, Distillery, Travel, Electronics and refractories activities of the Company.

During the year, management has decided to demerge operations of cement business (cement segment), captive power plants at cement units (power segment), refractory business and certain other businesses (Others segment). The disclosure of discontinuing business is given in Note 19.

Thecompany caters mainlyto the needs ofthe domestic martet.The export turnoverisnotsignificant in the context oftotal turnover. As such there are no reportableGeographical Segments.

Segment Information

The following table presents segment revenues, results,assets & liabili -ties in accordance with AS-17 as on 31.3.2010 for both continuing and discontinuing operations.

7. Related Party Disclosure as required by Accounting Standard-18.

a)List of related parties along with nature and volume of transactions is given be low:

Subsidiaries of the Company

Kanika Investment Limited, Ishita Properties Limited, D.I. Properties Limited, Geetee Estates Limited, Avnija Properties Limited, Shri Rangam Properties Limited, Hemshila Properties Limited, Himshikhar Investment Limited, Dalmia Minerals & Properties Limited, Shree Radha Krishna Broker & Holdings Limited, Dalmia Power Limited (formerly known as Seeta Estates & Brokers Limited), Dalmia Solar Power Limited (formerly known as Shri Rangam Brokers & Holdings Limited), Arjuna Brokers & Minerals Limited, Dalmia Bharat Enterprises Limited (formerly known as Sri Kesava Mines & Minerals Limited), DCB Power Ventures Limited (formerly known as Sri Madhava Minerals & Properties Limited), Sri Shanmugha Mines & Minerals Limited, Sri Swaminatha Mines & Minerals Limited, Sri Subramanya Mines & Minerals Limited, Sri Trivikrama Mines and Properties Limited, Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited and Dalmia Sugar Ventures Limited

Subsidlanes and step down subsidiaries of AvnijaPiopeities Limited

Dalmia Cement Ventures Limited, Golden Hills Resort Private Limited and Rajputana Properties Private Limited

Step down Subsidiaries of Dalmia Minerals & Properties Limited Cosmos Cements Limited and Sutnga Mines Private Limited

Associate of the Company OCL India Limited

JointVentures Khappa Coal Company Private Limited

Key Management Personnel of the Company Shri J.H.Dalmia Vice-Chairman, Shri Y.H.Dalmia Vice-Chairman , Shri Gautam Dalmia - Managing Director, Shri Puneet Dalmia ManagingDirector,andShriT.Venkatesan WholetimeDirector.

Relatives of Key Management Personnel

Shri V.H. Dalmia (Brother of Vice-Chairman), Shri J.H.Dalmia (HUF), Smt. Kavita Dalmia (Wife of Vice- Chairman) Shri Y.H.Dalmia (HUF),Smt.Bela Dalmia (WifeofVice-Chairman),Shri Gautam Dalmia (Son ofVice-Chairman),ShriGautam Dalmia (HUF),Smt.Anupama Dalmia (Wife of Managing Director), Shri Puneet Dalmia (Son of Vice-Chairman), Smt. Avantika Dalmia (Wife of Managing Director), Kumari Shrutipriya Dalmia (Daughter of Vice-Chairman), Kumari Sukeshi Dalmia (Daughter of Managing Director ), Kumari Vaidehi Dalmia (Daughter of Managing Director), Kumari Sumana Dalmia Daughter of Managing Director), Kumari Avanee Dalmia (Daughter of Managing Director), Mst. Priyang Dalmia (Son of Managing Director) Shri M.H.Dalmia,(Brother of Vice-Chairman) Smt. Abha Dalmia (Wife of Brother of Vice-Chairman), Shri R.H.Dalmia (Brotherof Vice-Chairman) and Smt. KalaVenkatesan(WifeofWholeTime Director).

Enterprises controlled by the Key Management Personnel of the Company

Rama Investment Company Private Limited, Puneet Trading & Investment Company Private Limited, Kavita Trading & Investment Company Private Limited, Sita Investment Company Limited, Mayuka Investment Limited, Ankita Pratisthan Limited, Himgiri Commercial Limited, Valley Agro Industries Limited, Shri Nataraj Ceramic and Chemical Industries Limited, Shri Chamundeswari Minerals Limited, Shree Nirman Limited, Keshav Power Private Limited, Avanee and Ashni Securities Private Limited, ZipAhead.Com Limited, Alirox Abrasives Limited, Sukeshi Trust, Vaidehi Trust, Sumana Trust, Shrutipriya DalmiaTrust,PriyangTrust,AvaneeTrustandRaghuHari Dalmia ParivarTrust.

8. Discontinuing operation

The Directors of Company at its meeting held on March 18, 2010, considered and approved a proposal to demerge the cement business, refractory business, thermal power business and certain other businesses (collectively the "Demerged Undertakings") into Dalmia Bharat Enterprises Limited ("DBEL") in terms of a Scheme of Arrangement under Section 391-394 of the Companies Act, 1956 and other applicable laws (the "Scheme"). DBEL is presently wholly owned subsidiary of the Company.

The Company has filed the Scheme of Arrangement under sections 391 to 394 of the companies Act, 1956 before the High court of Madras and hopes to complete the demerger by the end of the calendaryear.

As part of the Scheme, DBEL will further demerge the cement business to Avnija Properties Ltd ("Avnija") and thermal power business to DCB Power Ventures Ltd ("DPVL"). Post implementation of the Scheme as above, DPVLs shareholding will be held upto 74o/o by Dalmia Power Ltd ("DPL") while the balance 26% will be held by Avnija. Avnija and DPL will become wholly owned subsidiaries of DBEL. DBEL will be listed on NSE, BSE and Madras Stock Exchange with the same shareholding pattern as of the Company. The shareholders of the Company will receive one additional share in DBEL for every share held in the Company.

The purpose of the demerger is to develop potential for further growth and diversification to have better synergy and optimization of resources as well as to facilitate fund raising and development of the respective businesses. Further, the demerger would facilitate the running of Cement Undertaking, which is one of the core businesses of the group, with a greaterandfocusedapproachtoconcentrateand focus on its operations to itsgreateradvantage.

The carrying amounts of the total assets and liabilities to be demerged as at 31 March, 2010 are as follows. (Comparative information for demerged divisions in 2008-09 is included in accordance with the Accounting Standard on Discontinuing Operations).

9. Profit/Losson sale of Investments does not includeany profit/loss on sale of long term investments.

10. Details of loans and advances to associates, parties in which Directors are interested and Investments by the Loanee in the shares ofthe Company (as required by clause 32 of listing agreement)

11. During the year the Company, has acquired its stake in OCL India Limited, an associate of the Company, from 21.71 % to 45.370/0 through bulkdeal. It has bought 13.46 million shares,or 23.66%additional stake,in OCL India Limited at Rs 131.66 per share.

12. Figures lessthan Rs. Fivethousand which are required to be shown separately have beens how not actual in double brackets.

13. Previous Year Comparatives

Figures in brackets pertain to previousyear.Previousyears figures have been regrouped where necessary to conform to this years classification.

 
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