Contents

Page 1 Corporate Information

2 Notice

6 Chairman’s and Vice Chairman’s Statement

8 Board of Directors

10 Senior Executive Team

11 Our Businesses

12 Core Values

13 Financial Highlights

14 Management Discussion and Analysis

23 Corporate Social Responsibility

24 Directors’ Report

31 Corporate Governance Report

37 Financial Statements
 Corporate Information
Registered Office DCM Shriram Consolidated Limited
6th Floor, Kanchenjunga Building,
18, Barakhamba Road,
New Delhi – 110 001.
Tel. No. : (91) 11-23316801
Fax No. : (91) 11-23318072
E.mail : dscl@dscl.com
Bankers Punjab National Bank
State Bank of India
Bank of Baroda
Oriental Bank of Commerce
HDFC Bank Limited
Auditors M/s. Deloitte Haskins & Sells,
Gurgaon (Haryana)

Subsidiary Companies DCM Shriram Credit and Investments Limited

DCM Shriram Aqua Foods Limited
DCM Shriram International Limited
DSCL Energy Services Company Limited
DCM Shriram Infrastructure Limited
DCM Shriram Thermal Energy Limited
DCM Shriram Energy and Infrastructure Limited
DCM Shriram Hydro Energy Limited
Hariyali Rural Ventures Limited
Hariyali Rural Foundation
Hariyali India Limited
Hariyali Insurance Broking Limited
Shriram Bioseed (Thailand) Limited
Shriram Bioseed Ventures Limited
Shriram Bioseeds Limited
Zeus Investments Limited
Bioseeds Limited
Bioseed Vietnam Limited
Bioseed Research Philippines Inc.
Bioseeds Holdings PTE. Limited
Shriram Bioseed Genetics India Limited
Bioseed Research India Private Limited
Shri Ganpati Fertilizers Limited
SBM Yarn Limited
Fenesta India Limited

Stock Exchanges where the Securities of the Company are Listed

National Stock Exchange of India Ltd.,
Exchange Plaza, 5th Floor,
Plot No. C/1, G Block, Bandra-Kurla Complex,
Bandra (East), Mumbai-400 051.

Bombay Stock Exchange Ltd.,

Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai-400 001.
(It is confirmed that annual listing fee has been paid by the Company to the above Stock Exchanges.)

DSCL ANNUAL REPORT ‘08-’09 1

 01 REGISTERED OFFICE:
Notice 6th Floor, Kanchenjunga Building,
18, Barakhamba Road, New Delhi.

Notice is hereby given that the Twentieth Annual General Meeting of DCM Shriram Consolidated Limited will be
held on Tuesday, 11th August, 2009 at 10.00 A.M. at Air Force Auditorium, Subroto Park, New Delhi to transact
the following business:
Ordinary Business:
1. To consider and adopt the Directors' Report, the audited Balance Sheet of the Company as at 31st March,
2009 and the Profit and Loss Account for the year ended on that date.
2. To declare dividend on Equity Shares.
3. To appoint a Director in place of Shri Vimal Bhandari, who retires by rotation and being eligible offers himself
for re-appointment.
4. To appoint a Director in place of Shri Sunil Kant Munjal, who retires by rotation and being eligible offers himself
for re-appointment.
5. To appoint a Director in place of Shri D. Sengupta, who retires by rotation and being eligible offers himself for
re-appointment.
6. To appoint M/s. Deloitte Haskins & Sells, Chartered Accountants, as Statutory Auditors of the Company and
to fix their remuneration.
Special Business:
7. To consider and, if thought fit, to pass, with or without modification(s), the following Resolution as an Ordinary
Resolution:
”Resolved that pursuant to Section 293(1)(a) and other applicable provisions, if any, of the Companies Act,
1956 and subject to such consents and approvals as may be necessary, the Board of Directors of the Company
or a duly constituted Committee thereof (hereinafter referred to as the Board of Directors) be and is hereby
authorised to mortgage and/or charge all or any of the present and future movable and immovable properties
of the Company, situated at Swatantra Bharat Mills, Tonk (Rajasthan), DSCL Sugar - Hariawan, Distt. Hardoi
(U.P.), DSCL Sugar - Rupapur, Distt. Hardoi (U.P.), Shriram Fertilisers & Chemicals Complex at Kota (Rajasthan)
and Shriram Alkali & Chemicals, Bharuch (Gujarat), units of the Company, together with all buildings and
structures thereon and all plants and machinery attached to the earth, both present and future, and the whole
of the undertaking of the Company relating to the said units together with the power in favour of the lender(s)
to take over the management of the business and concern and/or undertaking of the Company relating to the
aforesaid units, mortgaged to them as per details given hereunder, in certain events of default for the purpose
of securing the financial assistance from the respective lenders as mentioned below:
a) On Company’s property situated at Swatantra Bharat Mills, Tonk
Lender Financial Assistance
As and by way of First Charge on the Plant, Machinery, Land and Building
- Punjab National Bank Rs.13.72 crores
b) On Company’s property situated at DSCL Sugar - Hariawan
Lender
As and by way of Exclusive Second Charge on the Movable and
Immovable properties
- Government of India, Ministry of Consumer Affairs, Rs. 17.42 crores
Food & Public Distribution
Department of Food & Public Distribution
c) On Company’s property situated at DSCL Sugar - Rupapur
Lender Financial Assistance
As and by way of Exclusive Second Charge on the Movable and
Immovable properties
- Government of India, Ministry of Consumer Affairs, Rs. 16.75 crores
Food & Public Distribution
Department of Food & Public Distribution
DSCL ANNUAL REPORT ‘08-’09 2
 d) On Company’s property situated at Kota, Rajasthan
Lender
As and by way of First ranking pari passu Charge on the Movable assets
and Immoveable assets excluding Current assets and Second ranking charge
on Current assets subject to first ranking security interest in favour of the
Working Capital Lenders
- International Finance Corporation, D.C., Washington Rs. 124.59 crores
(Equivalent to USD 25 million)
e) On Company’s property situated at Bharuch, Gujarat
Lender
As and by way of First ranking pari passu Charge on the Movable assets
and Immoveable assets excluding Current assets and Second ranking charge
on Current assets subject to first ranking security interest in favour of the
Working Capital Lenders
- International Finance Corporation, D.C., Washington Rs. 124.59 crores
(Equivalent to USD 25 million)
together with interest, compound interest, additional interest, further interest, liquidated damages, commitment
charges, premia on prepayment, costs, charges, expenses and all other monies including any increase/decrease
as a result of devaluation/revaluation/ fluctuation in the rates of exchange of foreign currency involved payable
by the Company and that such mortgage(s)/charge(s), other than those at (b) and (c) above, shall rank pari passu
with similar mortgage(s) and charge(s) created/to be created by the Company to secure the financial facilities/
borrowings availed or to be availed by the Company from Financial Institution(s)/ Bank(s)/Body(ies) Corporate.
Resolved further that the mortgage(s)/charge(s) created or to be created and/or all Agreements/Documents
executed or to be executed and all acts done or to be done in terms of the above Resolution by and with the
authority of the Board of Directors be and are hereby ratified and confirmed.
Resolved further that the Board of Directors be and is hereby authorised to finalise the documents to secure
the facilities/borrowings as aforesaid and to do all such acts, deeds, matters and things as may be necessary,
desirable, expedient for implementing the above Resolution and to resolve any question or difficulty which may
arise in relation thereto, or otherwise considered by the Board of Directors to be in the best interest of the
Company.”
8. To consider and, if thought fit, to pass, with or without modification(s), the following Resolution as a Special
Resolution:
“Resolved that pursuant to Section 163 and other applicable provisions of the Companies Act, 1956, consent
of the Company be and is hereby accorded for maintaining the statutory records viz. Register of Members &
Debenture holders, Index of Members & Debenture holders, Register of Share Transfers & Debentures and
copies of the Annual Returns with M/s. MCS Limited at their new address at F-65, 1st Floor, Okhla Industrial
Area, Phase – I, New Delhi – 110 020.”

By Order of the Board

New Delhi (B.L. SACHDEVA)

30th June, 2009 Company Secretary

DSCL ANNUAL REPORT ‘08-’09 3

 Notes:
1. The relevant Explanatory Statement pursuant to Section 173(2) of the Companies Act,1956 is annexed hereto.
2. A Member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of himself and
the proxy need not be a Member of the Company. A Proxy Form is sent herewith.
3. The Share Transfer Books and the Register of Members of the Company will remain closed from 28th July,
2009 to 4th August, 2009 (both days inclusive).
4. Members who are holding shares in physical form in identical names in more than one folio are requested to
write to M/s. MCS Ltd., the Registrar and Share Transfer Agent (RTA), F-65, 1st Floor, Okhla Industrial Area,
Phase-I, New Delhi-110 020, enclosing their Share Certificate(s) to enable the Company to consolidate their
holding in one folio.
In terms of SEBI Circular dated 20th May, 2009, pertaining to transfer of physical shares of the listed companies,
the transferee(s) are requested to furnish copy of their Income Tax PAN Card alongwith the Transfer Deed to
the RTA for registration of transfer of shares, irrespective of the value of the transaction.
5. Members holding shares in physical form are requested to notify immediately any change in their address to
M/s. MCS Ltd., RTA, quoting their folio numbers.
6. Pursuant to Section 205A of the Companies Act, 1956, the dividends upto the financial year 1994-95 which
remained unpaid/unclaimed had been transferred to the General Revenue Account of the Central Government.
The Members, who have not claimed their dividend for the said period so far may claim the amount from the
Registrar of Companies, NCT of Delhi and Haryana, 4th Floor, IFCI Tower, 61 Nehru Place, New Delhi.
Pursuant to the amended provisions of Section 205A of the Companies Act, 1956, which came into effect
w.e.f. 31.10.1998, the Company is obliged to transfer any amount lying in the unpaid dividend account which
remains unpaid or unclaimed for a period of 7 years from the date of such transfer to the unpaid account to the
credit of Investor Education and Protection Fund (the Fund). The Company has already transferred the unpaid
interim dividend for the financial year 2001-02 to the Fund. Please note that no claim shall lie against the
Company or the Fund in respect of individual amounts of dividend, once the same is transferred to the Fund.
In view of this, the Members of the Company who have not yet encashed their final dividend warrant(s) for the
financial year ended 31.3.2002 and thereafter may write to the Company immediately.
7. In terms of Section 109A of the Companies Act, 1956, the Member(s) of the Company may nominate a person
on whom the Shares held by him/them shall vest in the event of his/their death. Member(s) desirous of availing
this facility may submit nomination in Form 2B.
8. In terms of Notification issued by the Securities and Exchange Board of India, Equity Shares of the Company
are under compulsory demat trading by all investors w.e.f. 21st March, 2000. Members are, therefore, advised
to dematerialise their shareholding to avoid inconvenience in future.
9. Appointment/Re-appointment of Directors
At the ensuing Annual General Meeting Shri Vimal Bhandari, Shri Sunil Kant Munjal and Shri D. Sengupta,
Directors, retire by rotation and being eligible offer themselves for re-appointment. The information, as required
under the Listing Agreement, in relation to the aforesaid Directors is as under:

DSCL ANNUAL REPORT ‘08-’09 4

 Name of the Director
Date of Birth
Nationality
Date of Appointment on the
Board of the Company
Qualification
Expertise in Functional Area
Directorships held in other
Indian Companies
Chairman/Member of the
Committee(s) of the Board of
Directors of the Company
Chairman/Member of the
Committee(s) of the Board of
Directors of other Companies
in which he is a Director
Shri Vimal Bhandari Shri Sunil Kant Munjal Shri D. Sengupta
23.08.1958 14.12.1957 20.6.1942
Indian Indian Indian
13.5.2003 13.5.2003 11.8.2003
B.Com, C.A. B.Com, Training in Mechanical Engineering. Bachelor of Science in Physics, PGDM.
Delivering on accounting, budgeting and other Information Technology, Insurance, Customer Market Development, Risk Analysis and Transfer
corporate objectives in financial services. Relationship, Finance and Corporate Planning. Techniques, Managing Human Resources,
Insurance and Reinsurance Principles and
Practices, Funds Management and International
Business Relations.
- AEGON India Pvt. Ltd. - Hero Cycles Ltd. - Reliance General Insurance Co. Ltd.
- Mirc Electronics Ltd. - Hero Management Service Ltd. - Duncan Industries Ltd.
- Kalpataru Power Transmission Ltd. - Hero Corporate Service Ltd.
- Eveready Industries India Ltd. - Hero Motors Ltd.
- AEGON Religare Life Insurance Co. Ltd. - Satyam Auto Components Ltd.
- Religare AEGON Asset Management Co. Pvt. Ltd. - Thakurdevi Investments Pvt. Ltd.
- Bayer CropScience Ltd. - Bahadur Chand Investments Pvt. Ltd.
- Easy Bill Ltd.
- Hero Honda Motors Ltd.
- Shivam Autotech Ltd.
- Thakurdevi Hydro Pvt. Ltd.
- Arrow Infrastructure Ltd.
- BML Investments Pvt. Ltd.
- Abhyuday Manufacturing and Automotive Ltd.
- Hero Mindmine Institute Ltd.
- Hero Ergo Life Insurance Co. Ltd.
- Weave Engineering and Design Ltd.
- - Member
- Audit Committee
Chairman Chairman Member
Audit Committee Audit Committee Audit Committee
- Mirc Electronics Ltd. - Satyam Auto Components Ltd. - Reliance General Insurance Co. Ltd.
Member Member
Audit Committee Audit Committee
- Kalpataru Power Transmission Ltd. - Easy Bill Ltd.
- Bayer CropScience Ltd. - Hero Management Service Ltd.
- AEGON Religare Life Insurance Co. Ltd. - Shivam Autotech Ltd.

EXPLANATORY STATEMENT
(Pursuant to Section 173(2) of the Companies Act, 1956)
ITEM NO. 7
The Company has availed/proposes to avail financial assistance from Punjab National Bank, Government of India, Ministry of
Consumer Affairs, Food & Public Distribution, Department of Food & Public Distribution and International Finance Corporation,
Washington D.C. as detailed in the Resolution. The terms and conditions for availing the said financial assistance, inter-alia,
provide for creation of security by way of mortgage/charge on immovable properties and by way of hypothecation of movable
assets of the Company, as detailed in the resolution to respective lenders, situated at Swatantra Bharat Mills, Tonk (Rajasthan),
DSCL Sugar, Hariawan, District Hardoi (U.P.), DSCL Sugar, Rupapur, District Hardoi (U.P.), Shriram Fertilisers & Chemicals
Complex at Kota (Rajasthan) and Shriram Alkali & Chemicals at Bharuch (Gujarat) in the manner desired by the lenders and
agreed to by the Company. The creation of mortgage/charge requires approval of the Members under Section 293(1)(a) of the
Companies Act, 1956.
None of the Directors is concerned or interested in the Resolution.
ITEM NO. 8
M/s. MCS Limited, Registrar and Transfer Agent for shares, debentures, etc. of the Company (both in physical and demat form)
has shifted its office from Srivenkatesh Bhavan, W-40, Okhla Industrial Area, Phase – II, New Delhi – 110 020 to F-65, 1st
Floor, Okhla Industrial Area, Phase I, New Delhi - 110 020. The statutory records mentioned in the resolution are now being
maintained in their new Office.
Under Section 163 of the Companies Act, 1956, approval of the Members is required to keep statutory records at a place other
than Registered Office of the Company.
None of the Directors is concerned or interested in the Resolution.

DSCL ANNUAL REPORT ‘08-’09 5

 02
From the Chairman and Vice Chairman’s desk

Expanding Agri-rural
presence,
strengthening integration
and swing capabilities in
Chloro-Vinyl to deliver
sustained growth and
superior value

Dear Friends,

We are pleased to report that your Company recorded improved performance even in a challenging macro-
environment. Strong presence in diverse sectors – agri-rural businesses and Chloro-Vinyl businesses – with multiple
revenue streams and swing capabilities enabled us to optimise earnings and face the volatility much better.

Your company has continuously invested in its businesses to build a solid and secure operating base. Being
amongst the lowest cost producers and integrating into value added products have been the constant drivers of
our efforts over the last few years. These efforts have resulted in your company:-

• Setting up ~
— 275 MW of power generating capacity with multiple uses (including sale) which strengthens our
competitiveness and helps to optimize the earnings per unit of Power.

• Emerging as one of the top three manufacturers of Chlor-Alkali products.

• Building robust Agri-inputs portfolio of value added products based on strong research and intensive agri -
extension work with farmers.

• Establishing a large and integrated Sugar business in U.P.

• Strengthening the new businesses i.e 'Hariyali Kisaan Bazaar', 'Fenesta Building Systems' and 'Bioseed'.
These businesses exhibit strong potential for value growth:

• Hariyali, with over 300 outlets in 8 states, is the largest rural network of one stop destination for all needs
of the farmers and the rural households. It is aggressively enhancing its rural penetration with continuous
updation of its offerings. This would lead to high growth in revenue and margins going forward.

DSCL ANNUAL REPORT ‘08-’09 6

 • ‘Fenesta’ is developing as a synonym to uPVC Windows in the country, both in institutional and retail
segment. After achieving operating break-even during the year, it is poised for high growth in coming
years.

• ‘Bioseed’ with its strong research capabilities, has over the last decade built a prominent presence in
India, Vietnam and Philippines, and is now adding new markets. The research base has enabled a strong
product pipeline and has put this business on a high growth trajectory.

The Company’s commitment towards investing in its people resources has been strong. The employees, as always,
have demonstrated highest level of engagement in dealing with the challenges of a difficult year and have contributed
immensely towards strengthening of the Organization.

Highest standards of Corporate Governance are a strong focus in your company. We are continuously taking steps
to strengthen and update the same by adopting and institutionalizing the best practices with the help of experts.

As a responsible corporate citizen, we continue to pursue various initiatives relating to education, health,
infrastructure, farm income etc, which are aimed at improving the well being of society.

We would like to take this opportunity to thank all the members of the board, the employees, vendors, suppliers,
businesses associates, lenders and shareholders who have always supported our progress across varied businesses.
With their cooperation, we are confident of delivering superior value to all our stakeholders.

With best wishes,

(VIKRAM S. SHRIRAM) (AJAY S. SHRIRAM)

Vice Chairman & Chairman &
Managing Director Sr. Managing Director

DSCL ANNUAL REPORT ‘08-’09 7

 03
Board of Directors

Shri Ajay S. Shriram

Chairman & Senior Managing Director
Shri Vikram S. Shriram
Vice Chairman & Managing Director
Shri Rajiv Sinha
Deputy Managing Director
Shri Ajit S. Shriram
Director (Sugar)
Dr. N.J. Singh
Whole Time Director (EHS)
Dr. S.S. Baijal
Shri Arun Bharat Ram
Shri Pradeep Dinodia
Shri Vimal Bhandari
Shri Sunil Kant Munjal
Shri D. Sengupta
Shri S.C. Bhargava
LIC Nominee

Company Secretary Shri B.L. Sachdeva

Audit Committee Dr. S.S. Baijal

Chairman
Shri Arun Bharat Ram
Shri Pradeep Dinodia
Shri D. Sengupta

DSCL ANNUAL REPORT ‘08-’09 8

 Brief Profile of Directors of the Company
Shri Ajay S. Shriram, Chairman & Senior Managing Director, is a Director of the Company since 24.7.1989. He
graduated in Commerce from Sydenham College, University of Mumbai and later attended the Programme for
Management Development at the Harvard Business School, U.S.A. He is a Member of the Shareholders/Investors
Grievance Committee of the Company.

Shri Vikram S. Shriram, Vice Chairman & Managing Director, is a Director of the Company since 22.5.1990. He
graduated in Commerce with Honours from St. Xavier’s College, Calcutta and is a Member of The Institute of
Chartered Accountants of India. He is a Member of the Shareholders/Investors Grievance Committee of the
Company.

Shri Rajiv Sinha, Deputy Managing Director, is a Director of the Company since 1.11.1998. He joined the Company
in 1972 as a Management Trainee after graduating from IIT, Kanpur in Mechanical Engineering. Later, he attended
the Executive Development Programme at the Stanford University, U.S.A.

Shri Ajit S. Shriram, Director (Sugar), is a Director of the Company since 2.5.2001. He joined the Company in
1991 as an Executive after graduating in Commerce from Osmania University, Hyderabad. Later, he obtained an
M.B.A. Degree from the International Institute for Management Development, Switzerland.

Dr. N.J. Singh, Whole Time Director (EHS), is a Director of the Company since 20.11.2007. He joined the
Company in 1983 as Pollution Control Engineer. He holds M.Sc., Ph.D. Degrees and has been working as Chief
Executive, Shriram Environment & Allied Service and General Manager (Safety and Environment) with the Company
at Kota.

Dr. S.S. Baijal is a Non-Executive Director of the Company since 22.5.1990. He retired as the Chairman of ICI
Companies in India in 1987. He holds B.Sc., M.Sc., D. Phil Degrees. He is Chairman of the Board Audit Committee
and Member of the Shareholders/Investors Grievance Committee of the Company.

Shri Arun Bharat Ram is a Non-Executive Director of the Company since 22.5.1990. He is Chairman and Managing
Director of SRF Ltd. He graduated in Industrial Engineering from the University of Michigan, U.S.A. He is a Member
of the Board Audit Committee of the Company.

Shri Pradeep Dinodia is a Non-Executive Director of the Company since 18.7.1994. He graduated in Economics
with Honours from St. Stephens College, Delhi University and obtained his Law Degree from the same University.
He is a member of The Institute of Chartered Accountants of India. He is Chairman of the Shareholders/Investors
Grievance Committee and Member of the Board Audit Committee of the Company.

Shri Vimal Bhandari is a Non-Executive Director of the Company since 13.5.2003. He graduated in Commerce
from Sydenham College, University of Mumbai and is a Member of The Institute of Chartered Accountants of
India. He is currently serving as Country Head – India for AEGON N.V.

Shri Sunil Kant Munjal is a Non-Executive Director of the Company since 13.5.2003. He is Managing Director of
Hero Cycles Limited and Chairman cum Managing Director of Hero Management Service Limited and Chairman of
Hero Corporate Service Limited. He is a Commerce Graduate from Delhi University and has training in Mechanical
Engineering.

Shri D. Sengupta is a Non-Executive Director of the Company since 11.8.2003. He retired as Chairman of General
Insurance Corporation of India in June, 2002. He is a Bachelor of Science in Physics and holds Post Graduate
Diploma in Marketing from FMS, Delhi University. He is a Member of the Board Audit Committee of the Company.

Shri S.C. Bhargava, a nominee of Life Insurance Corporation of India (LIC), is a Non-Executive Director of the
Company since 11.8.2004. He retired as Executive Director (Investment) of LIC in July, 2005. He is a Commerce
Graduate from University of Mumbai and a Member of The Institute of Chartered Accountants of India.
DSCL ANNUAL REPORT ‘08-’09 9
 04
Senior Executive Team

The Company is organized into strategic business units managed by professional managers. The DSCL management team
has a strong, credible image in the industry. The key Members of the DSCL group Executive Team are listed below:
Shri Ajay S. Shriram
Chairman & Senior Managing Director
Shri Vikram S. Shriram
Vice Chairman & Managing Director
Shri Rajiv Sinha
Deputy Managing Director
Shri Ajit S. Shriram
Director (Sugar Business)
Dr. N.J. Singh
Whole Time Director (EHS)
Shri S.D. Omchary
Chief Executive Director (Textiles & Real Estate Development)
Shri S.K. Agrawal
Senior Executive Director – Chemicals Business
Shri K.K. Kaul
Executive Director & Resident Head - Kota
Shri S. Radhakrishna
Executive Director – Sugar Business
Dr. G.C. Datta Roy
Chief Executive - Energy Business
Shri A.K. Awasthi
Chief Executive – Hydro Power
Shri Sovan Chakrabarty
President & Business Head - Agri Inputs
Shri Rajesh Gupta
President & Business Head – “Hariyali”
Shri J.K. Jain
Senior Vice President & CFO
Shri Rajat Mukerjei
Senior Vice President and SBU Head – Plastics
Shri Sandeep Mathur
Senior Vice President & Business Head – FenestaTM Building Systems
Shri Sushil Baveja
Head - Corporate HR
Dr. Gautam Mukhopadhyay
Senior Vice President & Business Head - Shriram PolyTech
Shri B.L. Sachdeva
Company Secretary
Subsidiaries
Dr. Sharad Sharma
President - Shriram Bioseed Genetics India Ltd.
Dr. Paresh Verma
Research Director - Bioseed Research India Pvt. Ltd.
Shri Sambit Satapathy
Country Head - Bioseed Vietnam Ltd.
Shri Rajeev V. Nayak
General Manager - Bioseed Research Philippines Inc.

DSCL ANNUAL REPORT ‘08-’09 10

 05
Our Businesses

1. Chloro-Vinyl business:
• Chemicals Business: This comprises of Caustic Soda (Lye and flakes), Chlorine (Liquid and Gaseous) and
associated chemicals including Hydrochloric acid, Stable Bleaching powder, Compressed Hydrogen and
Sodium Hypochlorite. The Company has two manufacturing facilities located at Kota (Rajasthan) and
Bharuch (Gujarat) with full captive power. It has increased the capacity of its chlor-alkali manufacturing
facility at Bharuch from 200 TPD to 440 TPD and also set up a 48 MW coal based power plant to
generate economical power at Bharuch.
• Plastics Business: This is highly integrated, covering manufacture of PVC resins and Calcium Carbide,
PVC Compounds and UPVC Fenesta Windows (a consumer product). The Company is able to capture
value at each stage of the entire value chain.
i. PVC Resin is fully integrated with captive production of acetylene, chlorine and coal based power,
located at Kota.
ii. PVC Compounds of which the Company is the largest manufacturer in the organised sector is backed
by an innovative Polymer Application Development Centre (iPAC) at Gurgaon, India.
iii. The Cement business, located at Kota is based on waste generated from the Calcium Carbide production
process.
iv. Fenesta Building Systems manufactures UPVC windows (Un-Plasticized PVC) and door systems under
the brand “Fenesta”. It offers complete solutions right from design, fabrication to installation at the
customer’s site.
2. Agri-Business:
i. Urea: The Company has the dual feed naphtha/LNG based urea plant with a capacity of 3.79 lakh T.P.A.,
located at its integrated manufacturing facility at Kota. It is currently operating on 100% LNG.
ii. Sugar: The Company’s sugar business comprises of 4 facilities with a combined capacity of 33,000 TCD
in Central U.P. and co-gen power capacity of 94.5 MW.
iii. Hariyali Kisaan Bazaar: These are ‘Rural Business Centres’ which are a one stop solution to the multiple
needs of the rural communities (both business and family needs). Currently there are 301 such outlets in
operation.
iv. The Agri-Inputs business: This business provides total agri-inputs to farmer community by offering a
range of fertilizers, micro-nutrients, hybrid seeds, pesticides etc. through its wide distribution network.
v. Seeds: The Company offers a range of hybrid seeds under the brand ‘Bioseed’ in the country through its
subsidiary Shriram Bioseed Genetics India Ltd. The Company also operates seeds business in Vietnam,
Thailand, Philippines and Indonesia.
3. Other Businesses:
i. Textiles: The Company has a small textile operation in the form of 12,856 spindles spinning unit at Tonk
in Rajasthan. The expansion of capacity has resulted in enhanced production from 6 tonnes per day to 12
tonnes per day.
ii. Energy Services (ESCO): This business assists energy users (industrial, institutional, commercial users) in
achieving efficiency in energy usage, provides engineering and project management services for biomass/
conventional fuel based power plants.

DSCL ANNUAL REPORT ‘08-’09 11

 06
Core values and beliefs

The Company’s core values and beliefs are a reflection of its commitment to build a world
class, learning organization, to excel and win in all its endeavours:

Customer Focus

• Be sensitive to the needs of the customer; develop superior customer insight

• Commitment to surpass expectations and deliver superior value

Innovation and Excellence

• Think differently and promote creativity

• Make continuous improvement a way of life; drive excellence

People Development

• Continuously improve and upgrade the skills and competencies of our people

• Support people to realise their potential

Team work

• Work closely as a cohesive, well-knit team

• Inculcate a spirit of openness and collaboration

Relationships and Human Dignity

• Value people and partnerships

• Nurture understanding, compassion, trust and respect in all relationships

Social Responsibility and Ethics

• Be a socially responsible corporate, addressing the needs of the community and environment

• Conduct business ethically

• Maintain highest standards of personal integrity

DSCL ANNUAL REPORT ‘08-’09 12

 07
Financial Highlights
(Rs. Crores)

Financial Highlights
2002 2003 2004 2005 2006 2007 2008 2009

Gross Sales 1053.7 1376.0 1556.6 1977.4 2535.8 2938.2 2770.1 3681.35
Net Sales
- Own Products 714.7 1057.6 1175.3 1375.7 1735.1 1945.8 2211.0 2711.3
- Traded 280.4 237.0 288.2 493.2 656.8 821.5 363.0 789.5
- Total 995.1 1294.7 1463.4 1868.9 2391.9 2767.4 2573.9 3500.8
PBDIT 143.7 187.2 201.3 235.3 295.1 239.6 218.0 400.3
Interest 65.4 61.9 42.1 34.7 49.4 79.1 87.6 150.4
PBDT 78.3 125.3 159.2 200.6 245.7 160.5 130.4 249.9
Depreciation & Misc. exp. w/off 47.4 54.8 55.2 57.3 73.2 93.4 123.7 148.7
PBT 30.9 70.5 104.0 114.8 172.5 67.1 6.7 101.1
Profit after Current Tax 28.5 58.7 95.7 93.6 153.2 66.8 5.8 93.1
Profit after Deferred Tax 11.2 52.7 75.6 107.7 121.0 43.4 -1.3 122.6
Cash Profit 44.8 104.6 150.9 162.8 226.6 160.2 126.6 241.9
Total Funds Employed/ Utilised 884.7 915.9 920.7 1259.2 1775.0 2288.8 3104.0 3399.58
Share Capital - Equity 16.7 16.7 16.7 16.7 33.3 33.3 33.3 33.34
Net Worth 227.3 272.5 333.0 443.2 525.5 554.1 1149.3 1268.53
Minority Interest - 10.2 12.0 14.9 17.7 17.7 - -
Deferred Tax liability 84.6 89.5 109.5 95.4 146.7 170.1 171.2 143.9
Long term loans 401.8 403.0 344.7 504.7 740.2 789.5 991.0 1234.4
Short term loans 171.0 140.8 121.5 201.1 344.9 757.7 792.5 752.7
Net Fixed Assets 592.5 652.1 652.8 870.0 1272.5 1780.8 2056.6 2288.8
Net Current Assets 276.1 256.9 260.1 356.2 490.9 498.9 1035.3 1097.3
Investments 7.1 6.4 7.7 33.0 11.7 9.1 12.0 13.4
Earnings per share (Rs.)* 0.7 3.2 4.4 6.3 7.1 2.6 -0.1 7.4
Dividend per share (Rs.)* 0.9 0.9 1.2 1.6 0.9 0.8 3.3 0.8

Ratios
2002 2003 2004 2005 2006 2007 2008 2009
Return on Net Worth ** 4.1 21.1 25.0 27.7 25.0 8.0 - 10.1
Return on Capital Employed 14.5 18.1 20.2 21.6 18.7 10.3 4.7 9.7
Operating Margin 14.4 14.5 13.8 12.6 12.3 8.7 8.5 11.4
Capital Employed turnover ratio 1.1 1.4 1.6 1.5 1.5 1.4 1.1 1.0
Interest to Net Sales % 6.6 4.8 2.9 1.9 2.1 2.9 3.4 4.3
PAT to Net Sales % 1.1 4.1 5.2 5.8 5.1 1.6 - 3.5
Long term Debt/PBDIT 2.8 2.2 1.7 2.1 2.5 3.3 4.5 3.1
Long term Debt/Net Worth 1.8 1.5 1.0 1.1 1.4 1.4 0.9 1.0
Total Debt/Net Worth 2.5 2.0 1.4 1.6 2.1 2.8 1.6 1.6
Total Outside Liabilities/Net Worth 3.2 2.5 2.3 2.5 3.2 4.4 2.0 2.1
Interest Cover 2.2 3.0 4.8 6.8 6.0 3.0 2.5 2.7
Notes:
- * On face value of Rs. 2 per share Post Bonus and Split of shares in 2006
- **Profits for the year 2002 are before exceptional items of Rs. 29.8 crores
- **Profits for the year 2008 are before exceptional items of Rs. 664.5 crores
- **Return on Net Worth has been computed using average Net Worth
- Drop in PAT & Net worth related ratios in 2002 due to deferred tax provisioning.

DSCL ANNUAL REPORT ‘08-’09 13

 08
Management Discussion and Analysis
Performance Review 3. The Hariyali Kisaan Bazaar witnessed higher
The Company reported satisfactory growth in a losses, consequent to accelerated pace of
challenging macro operating scenario. All businesses expansion, which was as per plan.
reported healthy operational performance driven by 4. Fenesta Building Systems achieved operating
implementation of expansion plans and swing breakeven during the year.
capabilities to maximize earnings. The key highlights
of the FY2009 are as follows: • PAT for the year stood at Rs. 101.79 Crore as
compared to a loss of Rs. 3.03 Crore (without
• Net Revenues at Rs. 3439 Crore registered a exceptional items) in the corresponding period last
growth of 36% over last year: year. PAT also takes into account Deferred Tax
1. Growth was driven by Agri Businesses which credits relating to previous periods.
include Agri Inputs, Fertiliser and Sugar. These
businesses achieved 37% increase in revenues.
Business-wise performance review
2. The Chloro Vinyl Business which includes Chlor-
and outlook
Alkali (Chemicals), PVC resins and Power,
registered 21% increase in turnover driven by Business Mix
expanded Chlor-Alkali facilites.
3. Hariyali Kisaan Bazaar, part of our Rural value
chain, grew volumes at existing as well as new
outlets. The number of outlets reached 301
across 8 states.
• PBIT was up by 153% at Rs. 223 crore compared
to Rs. 88 crore last year. The segmentwise PBIT
performance was as under:
Particulars FY 2009 FY 2008
Rs. Crore %of Total Rs. Crore % of Total
Agri Businesses
Urea 25.8 7.2 19.7 9.9
Agri inputs 23.1 6.4 7.3 3.7
Sugar 87.9 24.4 (5.0) (2.5)
Sub total 136.7 38.0 22.0 11.1
Chloro-Vinyl 197.5 54.9 149.0 75.0
Cement 25.5 7.1 27.6 13.9
Total 359.7 100.0 198.6 100.0
Hariyali Kisaan Bazaar (64.6) (29.6)
Other Businesses (3.5) (17.5)
Unallocated Expenditure (68.8) (63.6)
Grand Total 222.8 87.9

1. Agri Businesses witnessed a turnaround with

a 522% increase in PBIT at Rs. 137 Crore.
Sugar and Agri Inputs business provided the
major thrust.
2. In Chloro-Vinyl business PBIT was up 33% at
Rs. 198 Crore, due to higher volumes in Chlor-
Alkali (part of this segment) consequent to the
capacity expansion to 765 TPD and completion
of 48 MW Coal based captive power plant and
the swing capability to sell more power when
downstream products primarily PVC resins (part
of this segment) witnessed stress.
DSCL ANNUAL REPORT ‘08-’09 14
 Chloro – Vinyl Businesses
DSCL’s Chloro-Vinyl business is highly integrated,
supported by 143 MW coal based power facilities (part
of 275 MW power capacity in the Company). This
business has multiple revenue streams, the major being
Chlor-Alkali (Caustic Soda and Chlorine), PVC resins,
Calcium carbide and Power. These revenue streams
ensure maximization of earnings per unit of power
produced and lend stability to Chloro-Vinyl operations.
The contribution of this business to total Revenue,
PBIT and its share of Capital Employed for FY 2009 is
as follows:
Particulars FY 2009 FY 2008
Rs. Crore Rs. Crore
Sales 840.7 694
PBIT 197.5 149
Capital Employed 813 780.4
Chlor – Alkali
Chlor-Alkali has Caustic Soda and Chlorine as the two
Co-products. These are basic industrial chemicals, used
primarily by Aluminum, Paper and Soap Industry. The
growth of this industry has a direct correlation to the
GDP growth in the economy.
The Company’s Chlor-Alkali manufacturing facilities
at Kota (Rajasthan) and Bharuch (Gujarat) add up to a
total capacity of 765 TPD; thereby placing it among
top three players in the domestic Chlor-Alkali industry.
During the year the capacity expansion at Bharuch was
completed thereby adding 240 TPD, along with setting
up of 48 MW Coal Based captive power plant.
DSCL ANNUAL REPORT ‘08-’09
Business Performance
Year Sales (MT) Realizations
(Rs./MT)
FY2009 1,80,547 22,124
FY2008 1,66,249 18,276
% Change 8.6% 21.1%
The Chemical business of the Company reported a
healthy performance due to stable market conditions
and completion of expansion at Bharuch Chemicals
complex. The expansion led to growth in volumes and
the 48 MW Coal based captive power plant has brought
in cost efficiencies. As regards other input costs, the
price of salt has stabilized at higher level which is an
area of concern.
Industry Overview and Outlook
The Chlor-Alkali industry in India has about 35 operating
units with a combined installed capacity of 2.9 million
tonnes of Caustic Soda. The top three players comprise
about 1/3rd of the total installed capacity. The domestic
demand for Caustic Soda and Chlorine is about 2.3
million tonnes and 1.90 million tonnes respectively.
The demand for Caustic soda is growing at ~ 4% p.a.
and that of Chlorine at ~2% p.a.
During the year international ECU prices touched a
high of over $ 650/Tonne, as were all the commodity
prices. Post October 2008, there was a moderation in
global demand with prices ranging between $ 250-
300/tonne. However domestically the demand has
not seen a noticeable reduction. The prices which saw
a decline in 3rd quarter of FY 09 bounced back in quarter
ending March 09. Further with the economy looking
up again, the GDP growth will drive the growth of this
Industry
Our Strategy
With the project completion at Bharuch, the Company
has now achieved cost competitiveness and enhanced
scale of operations, the full year benefits will accrue
in the next year. The Company is making efforts to
market higher quantity of by-products and also working
on enhancing the Flakes capacity, which is expected
to deliver better realizations. The Company is also
exploring strategic sourcing of key raw materials like
salt, barium carbonate and coal with an objective of
securing supply as well as to reduce costs.
The Company will continue to maximize returns per
15
 unit of Power both from Kota and Bharuch and will
further strengthen the swing capability.
PVC Resins
The PVC Resins business is an integral part of the
Chloro-Vinyl business, with complete backward
integration in terms of Power, Chlorine and Calcium
Carbide and has developed forward value chains which
includes PVC Compounding, Cement and Fenesta
Building Systems. These multiple products at both
ends, provide the ability for product swings to maximize
the returns.
DSCL has an annual capacity of 70,000 TPA of PVC
Resin at its Kota Manufacturing Complex, 112,000
TPA of Calcium Carbide of which, approx. 80% is used
to produce Acetylene for production of PVC resins,
balance ~ 22,000 MT is marketed is sold as packed
Carbide.
The Company manufactures PVC Resin through
Carbide/Acetylene route as against Ethylene route
which is being followed by most of the companies
manufacturing PVC worldwide except China. This route
enables superior product that is preferred by quality
conscious customers. The integrated nature of this
operation results in low the cost of production, and
also provides a hedge against volatility in crude prices.
Business Performance
PVC Resins Calcium Carbide
Year Sales (MT) Realizations Sales Realizations
(Rs./MT (MT) (Rs./MT)
FY2009 35810 51993 21600 35703
FY2008 57125 46712 16824 26815
% Change (37.3)% 11.3% 28.4% 33.1%
The PVC Resin witnessed stress in the second half of
the year, in terms of high input cost and low
realizations. The Carbide business however held to the
high realizations. The Company consciously took the
decision to reduce the production of PVC resins and
sell more of Power and Carbide, thereby utilizing its
swing capabilities to the optimum.
Industry Overview and Outlook
The Total installed capacity of the domestic PVC
industry is about 1.1 million tonne. There are five
players in the industry and the largest accounts of
2/3rd of the total capacity.
The current demand in the country is ~1.4 million
tonne out of which 74% of demand is met by the
DSCL ANNUAL REPORT ‘08-’09
domestic Resin suppliers and balance is being imported.
PVC Resin is used for a wide range of applications like
manufacturing of pipes & fittings, films & sheets, wires
& cables, windows & door profiles, medical tubing &
pouches, and footwear etc. The growth of this business
follows the GDP growth and especially that of
Infrastructure sector.
The domestic PVC demand has been growing at a
CAGR of approx. 6-7% over the past few years. In
Financial Year 2009 the demand growth was buoyant
in first half of the year, however stagnated in second
half. To add to this, the global demand plummeted
leading to crash in international prices of PVC resins.
The prices fell from a high ~ $1200/tonne to ~$ 550/
tonne as a result of which the domestic prices also
witnessed a sharp decline. The international as well
as domestic prices are now recovering on the back of
signs of revival of economic growth globally.
Our Strategy
Going forward, the Company will continue to explore
possibilities of adding to the existing swing capabilities
in this business.
Power
Power being one of the key inputs, is one of the most
critical business activity of the Company. The Company
currently has a total installed capacity of 275 MW at
various locations, of which 181 MW is Coal based
and 94.5 MW is Bagasse based. Of this 51.5 MW
bagasse based power is dedicated to supply to power
distribution companies. The balance 223.5 MW has
multiple uses and revenue streams. The Company built
swing capabilities to use power for various revenue
streams so as to maximize the earnings per unit of
power. It keeps strengthening these swing capabilities
further to enhance profitability.
Going forward, the Company will work towards
securing the supply of Coal on Long term basis at
economical costs.
Agri Businesses
Urea
DSCL Fertilizer Plant has an approved capacity of
3,79,000 TPA of Urea at its integrated manufacturing
complex at Kota, Rajasthan. The Company is the lowest
cost producer of Urea in the Pre -92 naphtha based
group and markets its product under the ‘Shriram Urea’
brand. The ‘Shriram’ brand under which the Company
16
 markets all its fertilizers, commands respect and Industry Overview and Outlook
invokes affinity within the farming community.
India is the second largest producer and consumer of
In 2006-07, the plant was modified to be capable of Urea in the world. Urea is the most widely used fertilizer
having Natural Gas / LNG as its feedstock besides in India and constitutes to about 72% of entire fertilizer
Naphtha. However, availability of Natural Gas / LNG consumption. High Nitrogenous content as well as low
in FY2009 was restricted. The Company has now farm gate price (which is fixed by the government)
entered into a Long Term Gas Supply agreement to makes it an attractive nutrient for the farmers vis-à-
procure Natural Gas from KG Basin, meeting its full vis other nutrients. The fertilizer industry continues to
requirement. Moving to Urea production based on suffer highly on account of delayed subsidy payments
Natural Gas will benefit the Company in terms of lower and uncompensated cost escalations due to rising input
outstanding subsidies and higher energy efficiencies. costs. The problem has further aggravated lon account
of issuance of fertilizer bonds by the Ministry of Finance
Business Performance
in lieu of subsidy payments to the Fertilizer Companies.
The contribution of the businesses to total Revenue, The bonds trade at a discount to face value resulting
PBIT and Capital Employed for FY2009 stands as in losses.
follows:
Our Strategy
Company intends to work towards improving the
energy efficiencies in the manufacturing process. The
availability of Natural Gas will add to its efforts. Further
the Company will also like to evaluate the benefit of
New fertilizer policy under which additional benefits
accrue if the production is more than the approved
capacity, as it did in current year as well.
Sugar
DSCL with a Capacity of 33,000 TCD is one of the
major player in the UP Sugar Industry. The Company
Particulars FY 2009 FY 2008 has four sugar units located across Central U.P. at
Rs. Crore Rs. Crore Ajbapur (10,500 TCD), Rupapur (6,500 TCD),
Hariawan (8,000 TCD) and Loni (8,000 TCD). The
Sales 797.5 704.8
four units have a total sugar co-generation power
PBIT 25.8 19.7 facility of 94.5 MW out of which 51.5 MW is dedicated
Capital Employed 203.8 206.2 to sale to power distribution companies.
The key operating parameters for the year are as
Product Sales (MT) Realizations follows:
(Rs./MT)
(Figures in lac quintals)
FY2009 3,94,513 20,216
Ajbapur Rupapur Hariawan Loni Total
FY2008 3,78,913 18,642 Sugar Season 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008

% Shift 4.1% 8.4 % Season (days) 91 123 71 106 75 105 78 108 — —

Cane Crushed 66.3 111.8 32.3 58.9 31.9 61.7 38.7 66.7 169.3 299.2
The business witnessed marginal increase in revenues Recovery Rate 8.88 10.56 8.24 9.53 9.12 10.28 8.86 10.07 8.80 10.19
and profitability in FY2009 on account of higher (%)

volumes and realizations. The Company produced Sugar Produced 5.9 11.8 2.6 5.6 2.9 6.3 3.4 6.7 14.9 30.5
additional urea over reassessed capacity, in line with Financial Year

the government policy under NPS III. As per the policy Cane crushed 66.3 137.2 32.3 70.7 31.9 66.7 38.7 81.6 169.3 356.3
provisions, manufacturers are permitted to retain 35% Sugar Produced 6.0 14.5 2.6 6.8 2.9 6.9 3.4 8.4 14.9 36.7
of net gain over Import Parity Price (IPP –Actual variable Sugar Sold 12.0 12.8 5.4 5.1 6.1 5.5 7.1 5.6 30.6 29.0
cost).
DSCL ANNUAL REPORT ‘08-’09 17
 Business Performance
The improved performance was largely due to firming
up of prices during the year as the company sold its
low cost inventory of Sugar season 2007-08. For the
sugar season 2008-09, the Company crushed ~169
lakh quintals (~299 lakh quintals in SS 2008) of cane
producing 14.9 lakh quintals (36.7 lakh quintals of
sugar in SS 2008) of sugar with an average recovery
of 8.80% (10.19% in SS 2008).The lack of Sugarcane
availability and lower yield as well as recovery due to
climatic conditions led to lower crushing and hence
production at a higher price.
The Company had accounted for cane purchases for
sugar year 2007-08 at Rs. 110 per quintal, the rate at
which it has made payment to the cane growers as
per the interim order of the Hon’ble Supreme Court,
against the price of Rs. 125 per quintal fixed by the
Uttar Pradesh State Government. Necessary
adjustments will be made in accordance with the orders
of the Hon’ble court in the matter.
The contribution of the business to total Revenue, PBIT
and Capital Employed for the FY2009 stands as
follows:
Particulars FY 2009 FY 2008
Rs. Crore Rs. Crore
Sales 611.8 474.3
PBIT 87.9 (5)
Capital Employed 1207 1254
Industry Overview and Outlook
The world sugar production is estimated at 157.5
million tonnes as against the last year’s production of
168.6 million tonnes. The fall in production can be
attributed to lower production in India and EU.
The world sugar consumption has grown at a fairly
DSCL ANNUAL REPORT ‘08-’09
steady pace of 2% and is expected to be around 165.8
million tonnes for 2008-2009 as against 162.2 million
tonnes for 2007-2008. Thus on a global basis there
has been a deficit of around 8.3 million tonnes between
production and consumption in 2008-2009 causing a
positive impact on world sugar prices.
India is a dominant player in the global sugar industry.
It is the second largest producer (after Brazil) and the
largest consumer of sugar in the world. The availability
of sugarcane is seasonal in nature which causes
cyclicality in sugar production. The cane crushing
season in India begins in October and goes on till April-
May except in South India where it extends up to July-
August.
All India production decreased from 26.3 million tonnes
in the sugar season 2007-2008, to around 14.6 million
tonnes in the previous sugar season. This decrease in
production can be attributed to adverse climatic
conditions and remunerative prices of alternate crops
like wheat and paddy. The demand for Sugar in India
is about 23 million tones.
The U. P. Government has declared the SAP for the
general variety of cane for the sugar season 2008-
2009 at Rs.140 per quintal as against the SMP of Rs.
81.18 fixed by the Central Government.
Our Strategy
In order to partially mitigate the impact of cyclicality
associated with the Sugar business, the Company has
invested in Sugar Co-generation facilities at Hariawan
and Loni unit by increasing its capacity to 94.5 MW
and power export capacity to 51.5 MW to ensure
continuous flow of revenues that can be optimized by
selling power to the grid.
The season 2008-2009 saw a drop in recovery. In
order to improve the recovery rates the Company has
initiated projects for development of good quality, high
yielding sugarcane.
Agri – Inputs
The Agri-Inputs Business provides a wide rage of farm
inputs to the farmer including Fertilizers, Seeds and
Pesticides. The Shriram brand of Agri-Inputs is known
for its quality and enjoys a very high brand value in
the market. The product range has been continuously
expanded to better serve the requirements of the
market. These products are backed up by an extensive
services network that helps in transferring the latest
technology and improving the farming practices.
18
 As part of its drive to help the farmer increase crop
productivity and standard of living, the Company also
pioneered an Agri-education program in the name of
Shriram Krishi Vikas Kendra (SKVK). The program
envisages to educate the farmer community about the
best practices in Agriculture.
Business Performance
The contribution of the business to total Revenue, PBIT
and Capital Employed for the FY2009 stands as
follows:
Particulars FY 2009 FY 2008
Rs. Crore Rs. Crore
Sales 428.5 158.5
PBIT 23.1 7.3
Capital Employed 68.7 59
DSCL’s endeavor to adapt & excel in the dynamic
environment and strategy to focus on value added
products is paying off. After turning around the
business in FY2008, DSCL continued its efforts in
aggressively growing it further. Revenue and PBIT
increased from Rs. 158.5 Crore and Rs. 7.3 Crore in
FY2008 to Rs. 428.5 Crore Rs. 23.1 Crore in FY 2009,
respectively.
Overview and Outlook
In view of the limited land available for cultivation, the
higher food requirement can only be met by a rapid
improvement in the farm productivity. While some
initiatives like the National Food Security Mission are
aimed at addressing the productivity challenge, the
Private Sector will also have to play a pro-active role
and participate fully in this mission to achieve some
tangible gains.
DSCL ANNUAL REPORT ‘08-’09
The increasing yield can be achieved only through
improved and informed use of various Agri-Inputs like
fertilizers, hybrid seeds, micro-nutrients, pesticides etc.
The demand for Agri inputs is therefore expected to
register robust growth in medium term and the private
sector which facilitate delivery of the inputs and know-
how to farmers will play an increasingly significant
role.
Our Strategy
The steps taken in the last 2 years in terms of
reorganization of the Agri Input portfolio enabled the
Company report significantly better earnings from this
business, while also limiting the level of working capital
required to run this operation. The Company will
continue to add latest generation products to its
portfolio and strengthen its capabilities to deliver the
same to farmers in more effective manner.
Bioseed
The Bioseed business of the Company housed in 100%
subsidiaries, is a key element of Agri portfolio. The
business includes strong research capabilities,
production, processing and marketing. It has
established significant presence in India, Vietnam and
Philippines. It is also developing market in Thailand,
Indonesia and China. In terms of crops, its offerings
include Corn, Cotton, Paddy, Millet and Vegetable
Seeds. Over last decade, it has made significant
investment in research which has enabled it to develop
a strong product pipeline. The products launched in
last two years have gained good farmers’ acceptance
by delivering superior performance over competing
products. The business is poised for high level of growth
in turnover and profits over the next couple of years.
Hariyali Kisaan Bazaar
This business with its unique operating model has
evolved as a ‘Rural Business Centre’, symbolizing trust,
reliability and respect among the rural community. The
business portfolio of Hariyali consists of Retail, Financial
services and Agri businesses like commodity trading,
Warehousing, seed production, milk collection and
cattlefeed etc. Hariyali Kisaan Bazaar targets to provide
a complete solution to the farmer in terms of Input as
well as Output.
The industry structure in all the rural areas is highly
fragmented with very little presence of organized and
large players. The performance of the Agri sector in
19
 the last year has been fairly robust driven by higher
MSPs and improved productivity levels. This has
provided an opportunity to further grow and strengthen
the position of Hariyali Kisaan Bazaar in the market.
The contribution of the business to total Revenue, PBIT
and Capital Employed for the FY2009 stands as
follows:
Particulars FY 2009 FY 2008
Rs. Crore Rs. Crore
Sales 419.1 222.1
PBIT (64.6) (29.6)
Capital Employed 436.9 280.5
The Company has achieved the targeted Critical mass
of 301 outlets as on 31st March 09 with presence in
the States of Uttar Pradesh, Haryana, Punjab,
Rajasthan, Uttaranchal, Madhya Pradesh, Andhra
Pradesh and Maharashtra. During the year Company
registered ~90% increase in revenues, the losses in
the Business also moved up as was anticipated based
on the pace of expansion.
The key concern inherent in the retail business is to
ensure steady throughput of products so that the risks
with respect to inventory management, product
obsolescence and price volatility can be effectively
managed. Adequate management attention and focus
is being provided in this area to ensure that these risks
are managed properly. The Commercial processes and
internal control systems are also being continuously
reviewed and strengthened to keep pace with the
increased scale and spread of the operations.
The Company has already invested in a strong IT
platform to manage the transactions and provide timely
information. The IT infrastructure has been further
reinforced with the installation of SAP-MAP, which is
an advanced software used for merchandise
assortment and planning.
Our Strategy
The focus going forward would be to scale up sale
volumes of all retail categories form each outlets, to
roll out Financial services, warehousing, output side
activities (including Milk collection, Commodity trading,
Variety seeds etc.) to as many outlets as possible, to
improve margins, to develop strategic alliances with
key Vendors and to attract larger footfall at the outlets
through various customer loyalty and brand
enhancement programs.
DSCL ANNUAL REPORT ‘08-’09
Other Businesses
Fenesta Building Systems
The UPVC window and door systems, pioneered by
DSCL under the brand name ‘Fenesta’ constitute the
forward value chain of the PVC business. Fenesta has
been able to establish the acceptability of its product
line in the market and is regarded as a leader pan India.
The product has features such as sound resistance,
thermal resistance, high durability and is low on
maintenance.
The Company provides end to end solution from design,
extrusion, to fabrication and finally installation. The
extrusion facility located at the Company’s integrated
complex at Kota is a state of the art facility using
imported machinery and equipments that match global
standards. The Company currently has five fabrication
facilities located at Bhiwadi (near Delhi), Mumbai,
Bangalore, Hyderabad, and Chennai. Besides these
locations, the Company has full-fledged marketing
offices in 12 cities and operates through 73 dealer
network in 23 cities.
During the year the business was impacted by the
slow down in the Real Estate Sector. However with
the focus on the retail sector, the Company has
managed to achieve operating breakeven in financial
year 2008-09.
The order book outstanding as on March 31, 2009 is
122,491 windows and the orders executed during the
year were 140,625 windows.
Our Strategy
The effects of the downturn in the Real Estate market
have affected all sub-sectors that are dependent on
the reality industry. Therefore, the Company has
extended its focus on the retail segment where the
contribution is higher and the growth prospects are
more optimistic. The Company is emphasizing on
expansion of dealer network in local & upcountry
markets. Greater focus is also being given to
commercial segments like hotels, service apartments,
schools and factories. In view of the low cost housing
gaining momentum, the Company is developing new
products to cater this market segment.
The Industry is witnessing entry of global as well as
domestic players. The Company believes that this will
facilitate the future growth of the industry as it will
bring in global practices and help in increasing
penetration of the product that will benefit all market
20
 players. At the same time, DSCL’s first-mover The business reported stable performance during the
advantage, technological edge, product range suitability year in a tough operating environment. The revenues
to Indian conditions, contemporary design, superior were higher primarily on account of higher realizations
delivery model, synergy from integration and customer on the back of firm demand-supply outlook, while
care services will help the Company sustain its increase in prices of key inputs like coal, limestone
competitive edge and grow at a fast pace going etc. affected the operating margins.
forward.
PVC Compounds
Cement
DSCL is the largest manufacturers of PVC Compounds
DSCL’s cement plant is an excellent example of waste in the organized sectors, with a total capacity of 29,700
management. The plant is based on waste Calcium TPA. The position was further consolidated through
Hydroxide sludge produced during Acetylene capacity expansion by 6300 TPA, with commissioning
generation at its integrated manufacturing plant at of a new state of the art compounding line at its Kota
Kota. The current capacity of plant is 4,00,000 TPA. facility. The focus on new products and applications
It produces high quality, premium grade of both, development has further been intensified at DSCL’s
ordinary portland and blended cements. The cement innovative Polymer Application Center (i-PAC) to bring
is characterized by light colour i.e. high degree of in innovative and high end value added products.
whiteness, superior strength and setting properties.
Industry Overview
As a result, the “Shriram” cement commands a strong
brand equity and premium in the market. PVC Compounds are intermediate products used by
different industry segments like wire & cables,
Industry Overview and Outlook
automotive, food and medical, footwear, and now by
The Indian cement industry, with a total capacity of user of engineering plastics for selected niche
approx. 208 MMT tonnes, is the second largest applications demanding specific performances. This
producer of the cement in the world after China. industry is largely unorganized and comprises a number
Demand growth in FY2009 has been ~8% over the of small players. DSCL is the largest organized player
previous year and is likely to decline to 6-7% in FY2010 and produces PVC Compounds for merchant sale.
due to slow down in the Real Estate sector. Despite
With general slow down of economy, most PVC
the slow down, the prices have not seen any major
Compounds users are facing difficulty in maintaining
decline. With the revival of economy and more so of
growth momentum. The compounding industry is
infrastructure sector the demand is expected to remain
expected to face some temporary slowdown in demand
robust.
and achieving growth in these segments may take
Business Performance sometime. We expect the industry to regress to
normalcy as the economy starts recovering.
The contribution of the business to total Revenue, PBIT
and Capital Employed for FY2009 stands as follows: Business Performance
Market dominance of DSCL, even in face of general
Particulars FY 2009 FY 2008
economic slowdown and competition from small and
Rs. Crore Rs. Crore
unorganized players in compounding business, has
Sales 128.2 119.5 been maintained. Business registered a growth of about
PBIT 25.5 27.6 18%, which is more than double of the PVC industry
Capital Employed 21.7 25.8 growth during the year.
Company’s focus on new products & applications
Product Sales (MT) Realizations development, formulation cost & procurement cost
(Rs./MT) reduction, better quality & higher productivity, growth
FY2009 3,80,284 2,616 of customer and supplier base etc. has paid rich
FY2008 3,68,473 2,589 dividends. The Company has also engaged in
technology development work with potential of creation
% Shift 3.2% 1% of intellectual properties. Share of higher value added

DSCL ANNUAL REPORT ‘08-’09 21

 products in overall sales was maintained and is
expected to grow in future with commercialization of
specialty Resin based compounds.
Our Strategy
Development work on specialty PVC Resin based
compounds has progressed satisfactorily. Approval
process from OEMs and their vendors in a few target
applications is in advanced stage. These products and
applications potentially open up new opportunities to
enhance share of higher value added products in the
product basket. The Company expects reasonable sale
and application growth in the near term.
Textiles
DSCL has a spinning unit at Tonk in Rajasthan with an
increased capacity of 14,544 spindles. The Company
has implemented an expansion cum modernization
project, the total capacity has increased from 6 tonnes
to 12.4 tonnes per day and move to finer counts. The
project was completed in December 2008.
Going forward, the Company will continue its drive
towards cost rationalization and improving efficiencies.
Human Resources and Industrial
Relations
The Company has, as always, maintained its focus on
development of its human resources and maintaining
harmonious industrial and employee relations across
the organization, as part of its people philosophy and
commitment towards upholding of its core value and
belief. Our Company has always believed that people
are fundamental to the growth. The company continues
to work towards the over arching objective of becoming
an employer of choice where people are respected,
cared and developed at a personal and professional
level.
Human Resources Growth and Optimisation
The human resources in various businesses of the
organization have been fairly steady and grown
gradually wherever there has been the need for
expansion and growth. The focus during the year has
DSCL ANNUAL REPORT ‘08-’09
been more towards building efficiency and improving
the productivity standards through various process
improvements and quality initiatives.
Employee Engagement and Initiatives
The Organisation has during the year worked towards
strengthening employee engagement and building a
strong connect through various initiatives and
processes across various units and businesses. During
the year, the various HR processes and systems have
been further strengthened through strategic initiatives
in the area(s) of Talent and Leadership Development,
Capability Building, Performance Management,
Employer Branding and others using Cross functional
teams.
Training & Development
The Organisation, as in the past, has been working
relentlessly towards building skills and competencies
of people in the technical, functional and behavioural
domains, as a part of the process of creating a culture
of learning and development. It is being done through
a structured and systematic intervention built around
training & development, multi-skilling, job rotations,
mentoring, tutoring, and other action learning projects.
It is all aimed at building a world class Organisation,
with practices which are not only best in the industry
but serve as a benchmark for everyone.
Industrial / Employee Relations
The Organisation continues to keep a track record of
harmonious and cordial relations with employees across
all levels and across all units and businesses. The
relationships continue to be characterised by complete
openness, transparency, trust and faith. This has all
been possible through easy accessibility, regular
communication and an authentic and caring relationship
with all employees.
On an overall basis, the Organisation continues to
provide its employees with an enabling environment
and ethos where everyone can give their best and
engage with the Organisation with complete sincerity
and commitment.
22
 09
Corporate Social Responsibility
Social welfare and community development lies at the
heart of DSCL’s corporate culture. Education, Health,
Rural upliftment and concern for Environment comprise
the focus of our CSR strategy. Close and continuous
interaction with the people and communities in and
around the operating locations has been the key focus
while striving to bring around qualitative changes and
supporting to increase economic productivity.
Education
The Company provides opportunities to students
through various scholarship programs to enable them
pursue academic studies. The company also provides
financial assistance to schools around its manufacturing
facilities in Rajasthan, Gujarat and U P.
In order to improve the quality of education, the
Company runs ‘Ryan International School’ in
collaboration with St. Xavier’s Education Trust near
its Ajbapur (UP) Sugar unit. Near its Hariawan (UP)
Sugar unit also the Company has set up a primary
School. The primary education program ‘Sanskar
Pariyojna’, in association with Vinoba Seva Ashram,
near Ajbapur Sugar unit, is aimed to provide primary
education in the targeted 10 villages and to create
voluntary social structures.
Mid-day Meal Scheme for Children in Schools
The Company has partnered with the Government of
Rajasthan to support the state government’s Mid Day
Meal Scheme for school children in and around
Jhalawar and Kota Districts of Rajasthan. The Jhalawar
and Kota kitchen was entirely funded by DSCL and
has benefited more than 23,000 children daily across
400 schools. This also provides employment
opportunity to local women folk in the central kitchen
and others in the distribution network.
Health Care
DSCL has been instrumental in creating awareness
among the members of society against HIV/AIDS. We
have been regularly organizing AIDS/HIV awareness
programs aimed at the employees, contract labours,
cane growers, truck drivers and residents of the nearby
villages. HIV-AIDS program are reviewed by agencies
like IFC, UNDP, TERI, CII, World Bank and RACO.
With a focus to serve the society, the Company has
donated and maintains Mobile Healthcare unit with
DSCL ANNUAL REPORT ‘08-’09
assistance of Helpage India, maintains an ICU and
private wards at a hospital, has set up a Polyclinic, a
Rural Health Clinic and organizes Blood donation
Camps, Health checkup/awareness camps. It also
provides incentive schemes for family planning
programs.
DSCL’s sugar divisions runs a programme titles
‘Khushali Pariyojana’ in association with Vinoba Seva
Ashram which aims to provide health advisory services
to women, ensure vaccination, offer hygiene directives,
conduct health awareness programs.
Agriculture Extension Activities
DSCL’s Shriram Krishi Vikas Kendras (SKVK’s) is a
long term integrated rural development program which
is aimed to support the farmers in their work and life
through adoption of over 650 villages. SKVK’s
currently 108 in nos. provide help in terms of farming
technology, post harvest management, soil and water
testing. These Kendras organize farmer training
programs. Their activities are extended to meet
education, hygiene, sanitation needs for the
community as well.
Social Upliftment and Rural Development
DSCL’s Sugar division, in association with Gram Swaraj
Mission is running ‘Swabhiman Pariyojana’. It has set up
Women’s self help groups in 10 adopted villages and
promote their adoption of income generation activities.
It aims to provide training in various incomes generating
activities and facilitating creation of structures for
marketing and distribution of these products.
The company has adopted villages close to its Sugar
manufacturing facilities, to develop their infrastructure
such as widening and re-soiling of Roads, proper
drainage system, clean drinking water, maintaining
hygienic sanitary conditions and development of
Panchayat Bhawan area.
Sports and Cultural Activities
DSCL has been organizing prestigious DSCL Open
National Tennis Championship on annual basis, to
nurture the young tennis talents. It also organises a
State level Volleyball Tournament in Hardoi District, in
association with the U.P. State Volley ball Federation.
The Company continues to support sports within its
complex as well as in the Schools in its vicinity.
23
 10
Directors’ Report

The Directors have pleasure in presenting the 20th Annual operations has helped in optimising the earnings per unit
Report of the Company along with Audited Accounts for of power and given stability to these operations.
the year ended 31st March, 2009. Hariyali Kisaan Bazaar added 141 outlets during the year
taking the number of outlets to 301. The performance is
Financial Highlights as per plan. Fenesta Building Systems achieved operating
The working results for the year ended 31.3.2009 and breakeven during the year.
31.3.2008 are as under:
Earnings performance was significantly better driven by
Particulars 31.3.2009 31.3.2008 a stronger operating performance across all businesses.
(Rs. in crores) (Rs. in crores) The post tax profits were substantially better post
Sales (Gross) increased depreciation and finance charges. Depreciation
– Own Products 2731.82 2300.95 and finance costs were higher as new projects went on
– Trading 839.52 384.64 stream and firm interest rates. Deferred tax adjustments
relating to earlier periods also contributed to better
Total Sales (Gross) 3571.34 2685.59
..................................................... earnings performance.
Other Income 48.43 34.79
...........................................................................................................................
Profit before depreciation, The Company completed all its Capex programs during
the year with the completion of expansion of Chemicals
interest, tax and exceptional item 369.23 209.99
........................................................................................................................... capacity to 765 TPD and commissioning of 48 MW Coal
Depreciation 146.41 122.13
........................................................................................................................... based power plant at Bharuch. The Sugar Co-gen
Interest 146.80 84.73
........................................................................................................................... expansion to 94.5 MW was also completed during the
Profit before tax and exceptional item 76.02 3.13
........................................................................................................................... year.
Exceptional item - 779.64
........................................................................................................................... Bioseed business which operates through a 100%
Profit before tax 76.02 782.77
........................................................................................................................... subsidiary, witnessed impressive growth in revenues at
Provision for Taxation (25.77) 111.78
........................................................................................................................... Rs. 157 crores and PBIT at Rs. 30 crores during the year.
Profit after tax 101.79 670.99
........................................................................................................................... The detailed performance of various businesses of the
Net Profit (before exceptional item) 101.79 (3.03)
........................................................................................................................... Company for the year ended 31st March, 2009 has been
Transfer from Debenture stated in the Management Discussion and Analysis Report,
Redemption Reserve 1.50 5.17
........................................................................................................................... which appears as a separate statement in the Annual
Balance brought forward from Report.
previous year 461.53 251.37
........................................................................................................................... Subsidiary Companies
Net Profit available for appropriation 564.82 927.53
...........................................................................................................................
Appropriations During the period under review, DCM Shriram Hydro
........................................................................................................................... Energy Limited, SBM Yarn Limited, Fenesta India Limited,
- Proposed Dividends on Equity Shares 13.27 56.41
........................................................................................................................... Hariyali Insurance Broking Limited and Bioseeds Holdings
- Corporate Dividend Tax 2.26 9.59
........................................................................................................................... PTE. Limited, Singapore became subsidiaries of your
-...........................................................................................................................
General Reserve 50.00 400.00 Company.
- Balance Carried Forward 499.29 461.53
During the period under review, Affee Investments Corp.,
British Virgin Islands and Bioseed Genetics International
Dividend Inc., Panama were liquidated.
Your Directors are pleased to recommend dividend @ A statement pursuant to Section 212 of the Companies
Rs. 0.80 per Equity Share of Rs.2/- each for the year Act, 1956 relating to subsidiary companies is attached
ended 31st March, 2009. to the accounts.
Performance In terms of approval granted by the Central Government
During the year, the Company reported satisfactory under Section 212(8) of the Companies Act, 1956, the
earnings growth in a macro environment that has been a Audited Statements of Accounts and the Auditors’
challenging one. The Company registered net revenues Reports thereon for the year ended 31st March, 2009
of Rs. 3439.21 crores, an increase of 36% over previous along with the Reports of the Board of Directors of the
financial year. Net profit for the year stood at Rs. 101.79 Company’s subsidiaries have not been annexed. The
crores compared to a loss of Rs. 3.03 crores last year. Company will make available these documents upon
Agri Business comprising Fertiliser, Agri Inputs and Sugar, request by any member of the Company interested in
contributing to about 53% of the total turnover, witnessed obtaining the same. However, as directed by the Central
37% increase in revenues at Rs. 1,838 crores. PBIT for Government, the financial data of the subsidiaries have
this business was up 522% at Rs. 137 crores. been furnished under ‘subsidiary companies particulars’
Chloro-Vinyl business comprising Chlor-Alkali, PVC resin forming part of the Annual Report. Further, pursuant to
and Power, contributing about 24% of the total turnover, Accounting Standard AS-21 issued by The Institute of
witnessed 21% increase in turnover at Rs. 841 crores. Chartered Accountants of India, Consolidated Financial
PBIT for this business was up about 33% at Rs. 198 Statements presented by the Company in this Annual
crores. The swing capability to sell power from these Report includes the financial information of its subsidiaries.

DSCL ANNUAL REPORT ‘08-’09 24

 Fixed Deposits
As on 31st March, 2009, 136 deposits aggregating to
Rs. 52.36 lacs were unclaimed. Since then, 51 deposits
amounting to Rs.29.27 lacs have been claimed/renewed.
Corporate Governance
A separate section on Corporate Governance and a
Certificate from the Auditors of the Company regarding
compliance of conditions of Corporate Governance as
stipulated under Clause 49 of the Listing Agreement(s)
with the Stock Exchange(s) form part of the Annual
Report.
Directors
Shri Vimal Bhandari, Shri Sunil Kant Munjal and Shri D.
Sengupta, Directors, retire by rotation and are eligible for
re-appointment.
Auditors
M/s. Deloitte Haskins and Sells, Chartered Accountants,
retire at the forthcoming Annual General Meeting and
are eligible for re-appointment.
Personnel
In terms of the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, the name and
other particulars of the employees are required to be set
out in the Annexure to the Directors’ Report. However,
as per the provisions of Section 219(1)(b)(iv) of the Act,
the report and accounts are being sent to all the Members
excluding the aforesaid particulars. The complete Annual
Report including this statement shall be made available
for inspection by any Member during working hours for a
period of 21 days before the date of the Annual General
Meeting. Any Member interested in obtaining a copy of
the said statement may write to the Company Secretary
at the Registered Office of the Company.
Directors’ Responsibility Statement
It is hereby affirmed that
1. in preparation of annual accounts, all applicable
accounting standards have been followed,
DSCL ANNUAL REPORT ‘08-’09
2. the accounting policies of the Company have been
consistently followed. Wherever circumstances
demanded, estimates have been made that are
reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end
of the financial year and of the profit or loss of the
Company for that period,
3. proper and sufficient care has been taken for
maintenance of accounting records in accordance with
the provisions of the Companies Act, 1956 for
safeguarding assets of the Company and proper
internal controls are in place for preventing and
detecting frauds and other irregularities, and
4. annual accounts have been prepared on a going
concern basis.
Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings/Outgo
The information required under Section 217(1)(e) of the
Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988 with respect to these matters is
appended hereto and forms part of this report.
Industrial Relations
The Company continued to maintain harmonious and
cordial relations with its workers in all its Divisions, which
enabled it to achieve this performance level on all fronts.
Acknowledgements
The Directors wish to thank customers, the Government
authorities, financial institutions, bankers, other business
associates and shareholders for the cooperation and
encouragement extended to the Company. The Directors
also place on record their deep appreciation for the
contribution made by the employees at all levels.
On behalf of the Board
New Delhi (AJAY S. SHRIRAM)
30th June, 2009 Chairman & Sr. Managing Director
25
 Annexure to the Directors’ Report
Information as required under Section 217(1)(e) read
with the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988.
A.CONSERVATION OF ENERGY
(a) Energy Conservation Measures Taken:
Energy conservation has been an important
thrust area of the management and is being
continuously monitored. Important specific
actions taken during this year are:-
- Periodical energy audits, pressure drop
reduction measures and optimization of
operating parameters have been done in the
Ammonia Plant.
- At DM plant, optimum capacity pumps have
been installed to supply DM Water and
Process water to Fertiliser Plant.
- Flash steam generated from HCL Stripper
used in 1st distillation tower reboiler.
- New system devised for timely recovery of
broken and spilled carbide.
- Installation of low capacity Anolyte Blow
Down Pump in Chlor Alkali Plant.
- Trimming of 30% HCL Pump Impeller dia to
optimise flow and head in Chlor Alkali Plant.
- Installation of overhead storage tank.
(b) Additional investments and proposals being
implemented for reduction in consumption of
energy:
An extensive trial of fuel additive has been carried
out in Boiler No. 2 of 35 MW Power Plant and
Boiler of 40 MW to reduce the unburnt carbon.
Based on the results, use of coal additive has
been planned in the year 2009-10 in all the
boilers with an improvement of boiler efficiency
by approximately 1%.
(c) Impact of the measures at (a) & (b) above for
reduction of energy consumption and
consequent impact on the cost of production of
goods:
The above mentioned energy consumption
measures which have already been undertaken
and the measures under implementation will yield
savings in energy consumption compared to the
past years and will continue to reduce the cost
DSCL ANNUAL REPORT ‘08-’09
of production. The summarized position of
energy reduction achieved is as under :
- Saving of 0.059 M.K.Cal/MT of Urea
- Saving of 3.8 Lacs Kwh/Annum due to
installation of new optimum capacity pump
in DM Plant in Power Plant.
- Reduction in power consumption by about
44 Kw/hr in Power Plant.
- Reduction in steam requirement by 300 Kg/
Hr in PVC Plant at Kota.
- Saving in steam consumption by about 200
Tons/Month from the use of flash steam.
- Saving of around 7 kwh/MT of Carbide in
electrical energy on account of timely
recovery of Carbide.
- Saving of 83 Th.Kwh/Annum power in
Caustic Soda plant.
- Reduction in the running hours of HCL dozing
pump resulting in power saving of 23 ThKwh/
Annum in Chlor Alkali Plant at Kota.
- Saving in Power of 45 ThKwh/Annum in Chlor
Alkali Plant at Kota.
- Saving in Power of 15 ThKwh/Annum in Chlor
Alkali Plant at Kota.
(d) Total energy consumption and energy
consumption per unit of production:
Form A is annexed.
B. TECHNOLOGY ABSORPTION
(a) Efforts made in technology absorption:
Form B is annexed.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(a) Activities relating to exports; initiatives taken
to increase exports; development of new export
markets for products and services; and export
plans:
There was no export of Company’s own products
during the year, as domestic realisation was
better than export realisation.
(b) Total foreign exchange used and earned:
Rs./Crores
2008-09 2007-08
- Total foreign exchange used 206.94 129.35
- Total foreign exchange earned 2.27 0.08
26
 FORM A
(See Rule 2)
Form for disclosure of particulars with respect to conservation of energy
This Year Previous Year
2008–09 2007–08
A. POWER AND FUEL CONSUMPTION
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

1. Electricity
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(a) Purchased
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh (in lacs) 698.9 660.1

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Total Cost (Rs./lacs) 3002.7 2877.7

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Rate (Rs./Kwh) 4.3 4.4

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(b) Own Generation

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(i) Through Diesel Generator

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh (in lacs) 896.6 1769.8

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh generated per ltr. of Diesel/Furnace Oil 7.9 4.1

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh generated per ‘000 SCM of Natural Gas 3.8 4.1

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Cost (Rs./Kwh) 7.3 5.3

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(ii) Through Steam Turbine Generator

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh (in lacs) 12313.8 10399.2

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh generated per Kg. of Coal 1.2 1.2

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Cost (Rs./Kwh) 3.0 2.4

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

(iii)Through Steam Turbine Generator (Bagasse)

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Kwh (in lacs) 1264.7 2519.5

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Units generated per M.T. of Bagasse 322.2 309.9

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Bagasse consumed (M.T./lacs) 3.9 8.1

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2. Coal
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Quantity (M.T.) 1174832.5 994410.3

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Total Cost (Rs./lacs) 33813.2 24169.0

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Average Rate (M.T.) 2878.1 2430.5

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3. Furnace Oil
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Quantity (M.T.) 23874.4 36606.8

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Total Cost (Rs./lacs) 7105.1 7266.9

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Average Cost (M.T.) 29760.3 19851.3

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4. Natural Gas
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Quantity (SCM) 1478987.0 10157481.0

............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Total Cost (Rs./lacs) 184.8 1143.9

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Average Cost (SCM) 12.5 11.3

DSCL ANNUAL REPORT ‘08-’09 27

 This Year Previous Year
2008–09 2007–08
B. CONSUMPTION PER UNIT OF PRODUCTION
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

1. Electricity
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Urea (Kwh/M.T.) 135.6 143.8

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— PVC Compounds (Kwh/M.T.) 209.0 216.0

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— C. Soda, SFC, Kota (Kwh/M.T.) 18.8 5.6

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— C. Soda, SAC, Bharuch (Kwh/M.T.) – Internal Generation 2511.9 2620.2

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Liquid Chlorine (Kwh/M.T.) 152.5 103.1

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— HCL (Kwh/M.T.) 2.5 3.1

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Textiles – Yarn (Kwh/Kg.) 2.4 2.4

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Sugar – Ajbapur (Kwh/M.T.) 358.0 310.0

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Sugar – Rupapur (Kwh/M.T.) 374.0 282.0

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Sugar – Loni (Kwh/M.T.) 392.0 329.6

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Sugar – Hariawan (Kwh/M.T.) 397.4 320.9

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Fenesta Building Systems (Kwh/M.T.) 984.6 993.3

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2. Coal
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Urea (M.T./M.T.) 0.6 0.6

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— PVC Resin (M.T./M.T.) 5.2 4.9

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Carbide Packed (T/Ton) 3.2 3.0

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— C. Soda (M.T./M.T.) 4.0 2.4

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Cement (M.T./M.T.) 0.3 0.3

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— SBP (M.T./M.T.) 0.2 0.2

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3. Furnace Oil
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Urea (Kg./Ton) 7.8 6.9

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— C. Soda, SFC, Kota (Kg./Ton) 0.7 0.3

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— C. Soda, SAC, Bharuch (Kg./Ton) 220.9 536.8

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Cement (Kg./Ton) 0.1 0.2

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4. Others
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Steam – C. Soda (M.T./M.T.) – SAC, Bharuch 1.1 1.3

................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Steam – PVC Compund (M.T./M.T.) 0.1 0.4

............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Bagasse (M.T.) – Ajbapur 2.1 2.0

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Bagasse (M.T.) – Rupapur 2.9

...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2.3
— Bagasse (M.T.) – Loni 2.0 2.1
............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

— Bagasse (M.T.) – Hariawan 2.9 2.0

Notes:
1. Different sources of energy are inter changeable.
2. Wherever required, figures relating to previous year have been re-arranged.

DSCL ANNUAL REPORT ‘08-’09 28

 FORM B
(See Rule 2)
Form for disclosure of particulars with respect to technology absorption
Research and Development (R & D)
1. Specific areas in which R & D carried out by the
Company
- Use of sludge generated during Acetylene production
in Carbide plant.
- Joint study for the use of sludge being done by
CSMCRI Bhavnagar, to evolve a process for converting
sludge into Calcium Carbonate, which can be used
as a Filler in manufacturing of PVC Compounds.
- Feasibility study undertaken for conversion of Cement
plant from wet process to dry process while still
continuing to use the waste sludge generated during
Acetylene manufacturing in Carbide Plant.
- Purification of salt & brine.
- Seed Pan Technique for reduction in massecuite
production in sugar plant.
- Commissioning & operation of A Pan turns around
automation system in Ajbapur.
- Highly Filled Economical Cable compound.
- Injection moulding rigid compounds based on high flow
resin for replacement of engineering plastics.
- Injection moulding flexible compounds with high
molecular weight PVC Resin for Gasket and Footwear.
- Gasket compounds for Flexible profile application with
superior aesthetics.
2. Benefits derived as a result of the above R & D
- Improvement in sugar colour, lustre and reduction in
steam consumption.
- TAAS system reduction in boiling time, consistent
brix during pan boiling, Increase in purity drop,
decrease in steam consumption and finally reduction
in losses in Sugar Unit.
- New and non traditional market segment opened up
in Chlor Alkali Plant.
- Cost effective compounds to replace high end
engineering Plastics and Elastomers.
- Enhancement of the brand image with wider product
portfolio and innovative products.
3. Future plan of action
- Sulphur melting by heat generated by Sulphur
combustion.
- Induction of bagasse drier to reduce the fuel
consumption in boiler.
DSCL ANNUAL REPORT ‘08-’09
- Introduction of Heavy juice on cake washing.
- Pneumatic conveying of sugar dust.
- Pneumatic grading of sugar crystals.
- Introduction of sugar washing through AL molasses.
- Juice softening R & D with Aduban Sugar Institute,
Lousiana, U.S.
- Development and multiplication of applications based
on specialty compounds.
- Electrostatic Discharge PVC compounds for niche
application.
- Gaskets and Shoe sole with high compression set
and abrasion resistant compound.
- Continuation of development and fine tune product
manufacturing process of the organic fibrous filler and
development of the suitable compounds based on the
same.
- Different blends of PVC and other polymer to tap the
advantages of both in niche application.
- High molecular weight PVC resin based compounds
for high end Profile application.
4. Expenditure on R & D
Rs./Lacs
2008-09 2007-08
a) Capital Nil 27.00
............................................................................................................................
b) Revenue 213.00 154.00
............................................................................................................................
c) Total 213.00 181.00
............................................................................................................................
d) Total R & D expenditure
as percentage of
total turnover 0.06 0.07
Technology absorption, adaptation and innovation
1. Efforts, in brief, made towards technology absorption,
adaptation and innovation
- Option for using 1st/2nd Vapour in continuous
vacuum pan in final compartment.
- No use of water in AH, BH, CL molasses conditioners
& molasses conditioning by 4th Effect vapour.
- Zero Effluent discharge at Ajbapur
- Established the manufacturing process of the
specialty and value added compounds on the state-
of-the art Buss Kneader.
- With the help of the external consultants studied
the effect of flow and processing performance of
the injection molding compounds
- Flow adjustment of high molecular PVC compound
for Gasket application.
29
 - Different methods were studied to bring down the - Production of low ICUMSA Sugar with fine Lustre
particle size distribution of the organic fibrous filler - Cost reduction by launching highly filled Cable
from Bagasse. compound.
- New customers and application segments currently
2. Benefits derived as a result of the above efforts, e.g. using high end engineering plastics for few specific
product improvement, cost reduction, product performance needs.
development, import substitution, etc. - Better aesthetics in PVC based flexible profile
- Reduction in boiling time & consistent brix during compound with improved performance for import
the pan boiling substitution.
- Reduction in steam consumption / fuel consumption

3. Details of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) are
furnished as under:
I. Cement Plant
a) Technology Imported To modify the kiln internals to enhance the clinker production.
......................................................................................................................................................................................................................................................................................................................................................................................
b) Year of Import 2004-05
......................................................................................................................................................................................................................................................................................................................................................................................
c) Has the technology been fully absorbed? Yes
......................................................................................................................................................................................................................................................................................................................................................................................
d) If not fully absorbed, reasons therefor and N.A.
future plans of action

II.Chemical Plant
a) Technology Imported – Purchase of bipolar membrane electrolyser from Asahi Kasei
Chemical Corporation, based on their proprietary ION Exchange
membrane technology developed for use in manufacture of Chlor-
Alkali Products.
– Design & Drawings package to convert existing Mercury Cell
Based Caustic Soda Plant to membrane Cell Plant of 200 TPD
capacity.
......................................................................................................................................................................................................................................................................................................................................................................................

b) Year of Import 2004-05, 2005-06

......................................................................................................................................................................................................................................................................................................................................................................................
c) Has the technology been fully absorbed? Yes
......................................................................................................................................................................................................................................................................................................................................................................................
d) If not fully absorbed, reasons therefor and N.A.
future plans of action

III. Sugar Plant

a) Technology Imported Bagasse drier, Steam Conservation (Cigar)
......................................................................................................................................................................................................................................................................................................................................................................................
b) Year of Import 2004-05
......................................................................................................................................................................................................................................................................................................................................................................................
c) Has the technology been fully absorbed? Yes
......................................................................................................................................................................................................................................................................................................................................................................................
d) If not fully absorbed, reasons therefor and NIL
future plans of action

IV. PVC Plant

a) Technology Imported Purchase of polymer based on suspension technology from
Chisso Corp., Japan of 100 M3 capacity.
......................................................................................................................................................................................................................................................................................................................................................................................
b) Year of Import 2005-06
......................................................................................................................................................................................................................................................................................................................................................................................
c) Has the technology been fully absorbed? Yes
......................................................................................................................................................................................................................................................................................................................................................................................

d) If not fully absorbed, reasons therefor and N.A.

future plans of action

DSCL ANNUAL REPORT ‘08-’09 30

11
Corporate Governance Report 2008-09

(A) Company’s Philosophy (B) Board of Directors

The Company’s philosophy on Corporate As at 31.3.2009, the Board of Directors comprises
Governance is focused upon a rich legacy of fair, of an Executive Chairman, four Executive Directors
ethical and transparent governance practices. The and seven Non-Executive Directors.
Company is conscious of its responsibility as a good During the year, four Board Meetings were held
corporate citizen and is committed to high standard on 13.5.2008, 31.7.2008, 30.10.2008 and
of Corporate Governance practices. This is reflected 29.1.2009.
in the well balanced and independent structure
of the Company’s eminent and well represented The composition of Board of Directors, their
Board of Directors. The Company is in full attendance at Board Meetings during the year
compliance with the requirements under Clause 49 2008-09 and at the last Annual General Meeting
of the Listing Agreement(s) with the Stock held on 19.8.2008 and also number of other
Exchange(s). Directorship and Committee Membership/
Chairmanship as on 31.3.2009 are as follows:

Name of Director Category of No. of Board Attended No. of other No. of Committee
Directorship meetings last AGM Directorship # Membership # #
attended Member Chairman
Shri Ajay S. Shriram ED 4 Yes 14 2 1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Vikram S. Shriram ED 4 Yes 14 4 2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Rajiv Sinha ED 4 Yes 7 2 -
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Shri Ajit S. Shriram ED 3 Yes 13 1 -

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Dr. N.J. Singh ED 4 Yes - - -

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Dr. S.S. Baijal I-NED 3 Yes 5 6 3
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Arun Bharat Ram I-NED 3 No 10 4 -
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Pradeep Dinodia I-NED 4 Yes 8 8 4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Vimal Bhandari I-NED 2 Yes 5 6 1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Sunil Kant Munjal I-NED 3 No 14 5 1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri D. Sengupta I-NED 3 Yes 2 2 -
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri S.C.Bhargava (LIC Nominee) I-NED 4 No 14 6 1
# Excluding Private Limited Companies, Foreign Companies and Companies registered under Section 25 of the Companies Act, 1956.
## Includes only Audit Committee and Shareholders/Investors Grievance Committee.
ED - Executive Director
I-NED - Independent-Non-Executive Director

The ratio between Executive and Non-Executive Code of Conduct for all Board Members and Senior
Directors and Non-Independent and Independent Management Team. A copy of the said Code of
Directors is 5:7. Conduct is available on the website of the Company
Relationship amongst Directors (www.dscl.com).
Shri Ajay S. Shriram, Shri Vikram S. Shriram and All Board Members and Senior Management Team
Shri Ajit S. Shriram, being brothers, are related to have affirmed compliance of Code of Conduct
each other. as on 31st March, 2009 and a declaration to
that effect signed by Chairman & Senior
Code of Conduct for Board Members & Senior Managing Director is attached and forms part of
Management Team: this report.
In compliance to the provisions of Clause 49 of
the Listing Agreement, the Board has laid down a

DSCL ANNUAL REPORT ‘08-’09 31

 (C) Board Audit Committee Independent-Non-Executive Directors. The
(i) Terms of reference: Committee met twice during the year and the
attendance of the Members at the meetings
The role and terms of reference of Board Audit
was as follows:
Committee covers areas mentioned under
Clause 49 of the Listing Agreement and Section
292A of the Companies Act, 1956, besides Name of Member Status No. of
other terms as may be referred to it by the meetings
Board of Directors. attended
(ii) Composition: Dr. S.S. Baijal Chairman 1
.........................................................................................................................................................................................

The Board Audit Committee was formed in Shri Pradeep Dinodia Member 2
.........................................................................................................................................................................................
1990. As at 31.3.2009, the Committee Shri D. Sengupta Member 2
comprises of four Independent-Non-Executive
Directors. The Committee met six times during (iii) Remuneration Policy:
the year and attendance of the Members at The policy, inter alia, provides for the following:
the meetings was as follows:
a) Executive Directors:
Name of Member Status No. of - Salary and commission not to exceed
meetings limits prescribed under the Companies
attended Act, 1956.
Dr. S.S. Baijal Chairman 5 - Revision from time to time depending
........................................................................................................................................................................................
Shri Arun Bharat Ram Member 4 upon performance of the Company,
........................................................................................................................................................................................
individual Director’s performance and
Shri Pradeep Dinodia Member 5 prevailing Industry norms.
........................................................................................................................................................................................
Shri D. Sengupta Member 6 - No sitting fees.
(D) Committee for Determining Remuneration Payable b) Non-Executive Directors:
to Managing/Whole Time Directors - Eligible for commission.
(i) Terms of reference: - Sitting fees and commission not to
Subject to the provisions of the Companies Act, exceed limits prescribed under the
1956 and the notifications, if any, issued by Companies Act, 1956.
the Government thereunder to determine the - The remuneration payable to Non-
remuneration, including commission, payable Executive Directors is decided by the
to Managing/Whole time Directors. Board of Directors.
(ii) Composition: (iv) Detail of remuneration for the year 2008–09:
The Committee comprises of three (a) Executive Directors:
(Amount/Rs. Lacs)
Executive Directors Salary P.F. Superannuation Perquisites Commission Total
Shri Ajay S. Shriram* 63.60 7.63 9.54 42.31 59.00 182.08
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Shri Vikram S. Shriram* 60.00 7.20 9.00 36.57 56.00 168.77

.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Shri Rajiv Sinha* 45.60 5.47 6.84 31.83 # 50.00 139.74

.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Shri Ajit S. Shriram** 43.20 5.18 6.48 34.47 37.00 126.33

.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Dr. N.J. Singh*** 13.68 1.64 2.05 11.37 5.00 33.74

* Re-appointed w.e.f. 1.11.2008 for a period of 5 years. **Re-appointed w.e.f. 2.5.2006 for a period of 5 years.
*** Appointed w.e.f. 20.11.2007 for a period of 5 years. #Including arrears of Rs. 3 lacs paid on account of Rent.

I. Provision for incremental gratuity and earned II. Notice period for termination of appointment
leave for the current year has not been of Managing/Whole Time Directors is six
considered, since the provision is based on calendar months, on either side.
actuarial basis for the Company as a whole.
DSCL ANNUAL REPORT ‘08-’09 32
 III. In the event of termination of appointment of b) to exercise all powers conferred on the
Managing/Whole Time Directors, compensation Board of Directors under Article 43 of the
will be in accordance with the provisions of Articles of Association,
the Companies Act, 1956 or any statutory c) to decide all questions and matters that may
amendment or re-enactment thereof.
arise in regard to transmission of shares/
IV. The Company has not offered any stock option debentures/warrants issued/to be issued by
to its Executive Directors. the Company,
d) to approve and issue duplicate shares/
(b) Non-Executive Directors: debentures/warrants certificates in lieu of
During the financial year, there was no pecuniary those reported lost,
relationship or transaction between the e) to refer to the Board any proposal of refusal
Company and any of its Non-Executive of registration of transfer of shares/
Directors. debentures/warrants for their consideration,
The criteria for making payments to f) to look into shareholders and investors
Non-Executive Directors is as under: complaints like transfer of shares, non-
Sitting fee: receipt of annual reports, non-receipt of
@ Rs.15,000/- per Board meeting, declared dividend warrants, etc., and
@ Rs.15,000/- per Board Audit Committee g) to delegate all or any of its powers to
meeting and Officers/Authorised Signatories of the
@ Rs.7,500/- per Board Committee (other Company.
than Board Audit Committee) meeting (ii) Composition:
attended by them. The Committee comprises of two Independent-
The details of remuneration paid during the year Non-Executive Directors and two Executive
by way of sitting fee and commission for Directors.
attending meetings of Board/Committees The Company Secretary being Compliance
thereof along with number of shares held by Officer has been delegated the power to
Non-Executive Directors as on 31.3.2009 in the approve share transfer/transmission etc. subject
Company are as under: to a limit of 2500 shares of Rs.2/- each per
transfer deed at a time. The delegated authority
Name of the Director Amount/Rs. Lac(s) No. of has been regularly addressing the share transfer
Sitting Commi- Shares formalities.
Fee ssion held
During the year, the Committee met seven
Dr. S.S. Baijal 2.05 11.35 50,000
....................................................................................................................................................................................... times and the attendance of the Members was
Shri Arun Bharat Ram 0.90 4.10 - as follows:
.......................................................................................................................................................................................

Shri Pradeep Dinodia 1.85 7.40 29,270

.......................................................................................................................................................................................
Name Status No. of meetings
Shri Vimal Bhandari 0.30 2.60 2,000 attended
.......................................................................................................................................................................................

Shri Sunil Kant Munjal 0.40 2.90 - Shri Pradeep Dinodia Chairman 7
.......................................................................................................................................................................................
.......................................................................................................................................................................................
Dr. S.S. Baijal Member 3
Shri D. Sengupta 2.50 10.10 8,000
.......................................................................................................................................................................................
.......................................................................................................................................................................................
Shri Ajay S. Shriram Member 7
.......................................................................................................................................................................................
Shri S.C.Bhargava 0.55 3.20 -
Shri Vikram S. Shriram Member 7
(LIC Nominee)
During the year, 185 complaints were received
(E) Shareholders/Investors Grievance Committee from the shareholders and all of them were
(i) Terms of reference: resolved to the full satisfaction of the
a) to scrutinise and approve registration of shareholders. No investor complaint was
transfer and transmission of shares/ pending as on 31.3.2009.
debentures/warrants issued/to be issued by
the Company,

DSCL ANNUAL REPORT ‘08-’09 33

 (F) General Body Meetings period of five years w.e.f. 2.5.2006.
The last three Annual General Meetings were held - Approval for appointment of Shri Aditya A.
as under: Shriram as a Manager under Section 314 of
Financial Date Time Location the Companies Act, 1956 to hold and continue
to hold an office or place of profit in the
Year
Company.
2007-08 19.08.2008 10.00 A.M. Air Force
POSTAL BALLOT
Auditorium,
Subroto Park, - During the year, no special resolution has been
New Delhi passed by Postal Ballot.
.......................................................................................................................................................................................

2006-07 24.08.2007 10.00 A.M. Air Force (G) Disclosures

Auditorium,
(i) There were no transactions of material nature
Subroto Park,
New Delhi
with related parties during the year that had
.......................................................................................................................................................................................
potential conflict with the interest of the
2005-06 25.07.2006 10.00 A.M. Air Force Company at large.
Auditorium,
Subroto Park, (ii) There were no instances of non-compliance by
New Delhi the Company, penalties and strictures imposed
on the Company by the Stock Exchanges or
The details of Special Resolutions passed in SEBI or any other statutory authority on any
previous 3 Annual General Meetings are as under: matter related to the capital markets during the
AGM 2008 last three years.
- Approval for re-appointment of Shri Ajay S. (iii) The Company is complying with all mandatory
Shriram as Chairman & Senior Managing requirements of Clause 49 of the Listing
Director under Sections 269, 309 of the Agreement. The Company has adopted non-
Companies Act, 1956 for a period of five years mandatory requirements relating to
w.e.f. 1.11.2008. Remuneration Committee.
- Approval for re-appointment of Shri Vikram S. (iv) The Chairman & Senior Managing Director and
Shriram as Vice Chairman & Managing Director Chief Financial Officer of the Company have
under Sections 269, 309 of the Companies certified to the Board with regard to the
Act, 1956 for a period of five years w.e.f. compliance made by them in terms of Clause
1.11.2008. 49(V) of the Listing Agreement.
- Approval for re-appointment of Shri Rajiv Sinha (v) The Company has established a comprehensive
as Deputy Managing Director under Sections Risk Management Process that includes risk
269, 309 of the Companies Act, 1956 for a identification, risk assessment, risk mitigation
period of five years w.e.f. 1.11.2008. and monitoring on a periodic basis. External
- Approval for appointment of Dr. N.J. Singh as and internal risk factors that could potentially
Whole Time Director (EHS) under Sections affect performance of the Company vis-à-vis
269, 309 of the Companies Act, 1956 for a stated objectives are identified and reported in
period of five years w.e.f. 20.11.2007. the business review meetings periodically.
These are subsequently reported to the Board.
- Approval for promotion of Shri Aditya A.
Shriram as General Manager under Section (H) Means of Communication
314(1B) of the Companies Act, 1956 w.e.f The Company interacts with its Investors through
1.7.2008. multiple forms of corporate and financial
AGM 2007 communications such as annual reports, result
- No Special Resolution was passed. announcement and media releases. Quarterly
AGM 2006 results are usually published in English daily
- Approval for re-appointment under Sections newspapers, viz., The Economic Times, The
269, 309 of the Companies Act, 1956 of Financial Times, Business Standard and Hindi daily
Shri Ajit S. Shriram as Director (Sugar) for a newspapers, viz. Navbharat Times and Business

DSCL ANNUAL REPORT ‘08-’09 34

 Standard. These results are also made available (vii) Registrar and Share Transfer Agent:
on the website of the Company www.dscl.com M/s. MCS Limited are the Registrar and Share
and also posted at SEBI’s website Transfer Agent for shares and debentures of
www.sebiedifar.nic.in. The Company’s website the Company - both in physical and electronic
also displays official news releases. The Company mode.
has interacted with analysts and investors during (viii) Share Transfer System: The Company’s
the year under review through meetings and shares are traded in the Stock Exchanges
conference calls. compulsorily in demat mode. Physical shares,
(I) General Shareholders Information which are lodged with the Company for
transfer, are processed and returned to the
(i) Next Annual General Meeting is proposed to
members within a period of 30 days.
be held on 11th August, 2009 at Air Force
Auditorium, Subroto Park, New Delhi. (ix) Distribution of Shareholding as on 31.03.2009:
(ii) Financial Year: April to March Shareholders
(iii) Date of book closure: 28th July, 2009 to 4th No. of Shares Number % to total no.
August, 2009 (both days inclusive) of Shareholders
(iv) Dividend payment date: Dividend, if any, Upto - 500 50744 86.82
......................................................................................................................................................................................

declared in the next Annual General Meeting, 501 - 1000 3813 6.52
......................................................................................................................................................................................
will be paid within 30 days of the date of 1001 - 2000 1930 3.30
......................................................................................................................................................................................
declaration to those Members whose names 2001 - 3000 684 1.17
......................................................................................................................................................................................
appear in the Register of Members on the date 3001 - 4000 321 0.55
......................................................................................................................................................................................
of book closure.
4001 - 5000 216 0.37
......................................................................................................................................................................................
(v) Listing on Stock Exchanges and Stock Codes: 5001 - 10000 366 0.63
......................................................................................................................................................................................
Equity Shares are listed on National Stock
10001 and above 370 0.64
......................................................................................................................................................................................
Exchange of India Ltd. (Stock Code NSE:
DCMSRMCONS) and Bombay Stock Exchange TOTAL 58444 100.00
Ltd. (Stock Code BSE: 523367). (x) Categories of Shareholders as on 31.03.2009:
Under the depository system, the ISIN allotted
No of fully %
to the Company’s Equity Shares of face value
Category paid up share-
of Rs.2/- each is INE499A01024.
shares held holding
(vi) Equity Share Price data for the year 2008-09:
Promoters, Relatives and
Equity Share Price on NSE and NIFTY Index Associates 91673632 55.26
........................................................................................................................................................................................

Month Share Price on NSE NIFTY Index Financial Institutions, Banks

High Low High Low and Insurance Companies 18868175 11.37
........................................................................................................................................................................................

2008 Foreign Institutional Investors,

April 72.05 54.20 5195.50 4647.00 Overseas Corporate Bodies
.......................................................................................................................................................................................
and Non-Resident Indians 17467845 10.53
May 69.80 61.60 5228.20 4835.30
.......................................................................................................................................................................................
........................................................................................................................................................................................

June 64.00 50.25 4739.60 4040.55 Mutual Funds 8207854 4.95

........................................................................................................................................................................................
.......................................................................................................................................................................................
July 62.65 48.00 4476.80 3816.70 Bodies Corporate 6084658 3.67
........................................................................................................................................................................................
.......................................................................................................................................................................................
August 65.25 58.20 4620.40 4214.00
.......................................................................................................................................................................................
General Public 23601156 14.22
........................................................................................................................................................................................
September 60.80 47.30 4504.00 3850.05
....................................................................................................................................................................................... TOTAL 165903320 100.00
October 51.00 25.20 3950.75 2524.20
.......................................................................................................................................................................................
November 32.20 27.65 3148.25 2553.15 (xi) Dematerialisation of Equity Shares and
.......................................................................................................................................................................................
liquidity:
December 33.85 27.05 3077.50 2656.45
.......................................................................................................................................................................................
As on 31.03.2009, of the total eligible Equity
2009 Shares, 86.71% were in dematerialised form
January 32.25 25.35 3121.45 2678.55
....................................................................................................................................................................................... and the balance 13.29% shares in physical
February 26.75 22.30 2948.35 2733.90
.......................................................................................................................................................................................
form.
March 25.60 21.20 3108.65 2573.15
DSCL ANNUAL REPORT ‘08-’09 35
 The Company has not issued any GDRs/ADRs/
warrants or any convertible instruments,
which are pending for conversion.
(xii) Plant Locations:
The Company’s plants are located at Kota,
Bharuch, Ajbapur, Rupapur, Hariawan, Loni,
Tonk, Bangalore, Bhiwadi, Chennai,
Hyderabad and Mumbai.
(xiii) Address for Correspondence:
The Company’s Registered Office is situated
at 6th Floor, Kanchenjunga Building, 18,
Barakhamba Road, New Delhi-110 001.
Correspondence by the shareholders and
debentureholders should be addressed to:
MCS Limited
F-65, 1st Floor, Okhla Industrial Area, Phase–I,
New Delhi – 110 020
Tel. Nos. 011-41406149, 41406151-52
Fax No. 011-41709881
E-mail : mcsdel@vsnl.com
Exclusive E-mail for Investor Complaints
investorcomplaints@dscl.com
Members holding shares in electronic mode
should address all their correspondence to
their respective Depository Participants.

Declaration regarding Compliance of Code of Conduct

I, Ajay S. Shriram, Chairman & Senior Managing Director of DCM Shriram Consolidated Limited hereby declare
that all Board Members and Senior Management Team have affirmed compliance of the Code of Conduct for the
year ended March 31, 2009.

Place : New Delhi (AJAY S. SHRIRAM)

Date : 30th June, 2009 Chairman & Sr. Managing Director

Auditors’ Certificate on the Compliance of conditions of Corporate Governance under Clause

49 of the Listing Agreement
To the Members of DCM Shriram Consolidated Limited

We have examined the compliance of conditions of Corporate Governance by DCM Shriram Consolidated Limited
for the year ended March 31, 2009, as stipulated in clause 49 of the Listing Agreement(s) of the said Company
with stock exchange(s).
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination
was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of
the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the
Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing
Agreement(s).
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency
or effectiveness with which the management has conducted the affairs of the Company.

For Deloitte Haskins & Sells

Chartered Accountants

Jaideep Bhargava
Place : New Delhi Partner
Date : 30th June, 2009 Membership No. 90295

DSCL ANNUAL REPORT ‘08-’09 36

 12
Auditors’ Report
To the Members of DCM Shriram Consolidated Limited
1. We have audited the attached balance sheet of DCM
Shriram Consolidated Limited as at March 31, 2009,
the profit and loss account and also the cash flow
statement of the Company for the year ended on that
date annexed thereto. These financial statements are
the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with auditing
standards generally accepted in India. Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles
used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order,
2003 issued by the Central Government of India in terms
of section 227(4A) of the Companies Act, 1956, we
enclose in the annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to in
paragraph 3 above, we report that :
a) we have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b) in our opinion, proper books of account as required
by law have been kept by the Company so far as
appears from our examination of those books;
c) the balance sheet, profit and loss account and cash
flow statement dealt with by this report are in
agreement with the books of account;
d) in our opinion, the balance sheet, profit and loss
account and cash flow statement dealt with by this
report comply with the accounting standards referred
to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from
the directors and taken on record by the Board of
Directors, we report that none of the directors is
disqualified as on March 31, 2009 from being
appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act,
1956;
f) without qualifying our opinion, we draw attention
to note 20 of schedule 12 relating to accounting for
cane purchase liability for the sugar season 2007-
08 at Rs. 110 per quintal instead of State Advised
Price of Rs. 125 per quintal fixed by the Uttar Pradesh
State Government. Pending completion of legal
DSCL ANNUAL REPORT ‘08-’09
proceedings in the matter, the effect thereof on these
accounts can not be determined at this stage.
g) In our opinion and to the best of our information
and according to the explanations given to us, the
accounts give the information required by the
Companies Act, 1956, in the manner so required
and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i) in the case of the balance sheet, of the state of
affairs of the Company as at March 31, 2009;
ii) in the case of the profit and loss account, of
the profit of the Company for the year ended on
that date; and
iii) in the case of the cash flow statement, of the
cash flows for the year ended on that date.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Jaideep Bhargava
New Delhi Partner
Date : June 3, 2009 Membership No.: 90295
ANNEXURE
Annexure referred to in paragraph 3 of Auditors’ Report to
the Members of DCM Shriram Consolidated Limited on the
accounts for the year ended March 31, 2009.
(i) (a) The Company is maintaining proper records
showing full particulars including quantitative
details and situation of fixed assets.
(b) As explained to us, the Company has a
programme of physically verifying all its fixed
assets over a period of three years, which in our
opinion is reasonable having regard to the size of
the Company and nature of its fixed assets. In
accordance with this programme, some of the
fixed assets were physically verified by the
management during the year. The discrepancies
noticed on such verification between the physical
balances and the fixed assets records were not
material and have been properly dealt with in the
books of account.
(c) In our opinion and according to the information
and explanations given to us, a substantial part
of fixed assets has not been disposed off by the
Company during the year.
(ii) (a) During the year, the inventories have been
physically verified by the management except for
inventory lying with third parties at the end of
the year for which confirmations have been
obtained in most of the cases. In our opinion, the
frequency of the verification is reasonable.
37
 Auditors’ Report (Continued)
(b) In our opinion and according to the information
and explanations given to us, the procedures of
physical verification of stocks followed by the
management are reasonable and adequate in
relation to the size of the Company and the nature
of its business.
(c) On the basis of our examination of the records of
inventories, we are of the opinion that, the
Company is maintaining proper records of
inventories. Other than for one business segment
wherein differences noted between physical and
book balances were material, differences noted
in other business segments were not material.
The differences noted have been properly dealt
with in the books of account.
(iii) (a) According to the information and explanations
given to us, the Company has, during the year,
not granted any loan, secured or unsecured to
companies, firms and other parties covered in the
register maintained under Section 301 of the
Companies Act, 1956, other than unsecured loans
aggregating Rs. 49.01 crores granted during the
year to five wholly owned subsidiaries covered
in the register maintained under Section 301 of
the Companies Act, 1956.
The maximum amount due during the year of
above loans was Rs. 101.51 crores and the year
end balance of loans so granted was Rs. 65.66
crores. These loans includes interest free loan
aggregating Rs. 59.11 crores made to two wholly
owned subsidiaries, which, as explained to us,
have been made for setting up new projects and
making strategic investments in other subsidiaries.
(b) In our opinion and according to the information
and explanations given to us, after considering
the purpose for which loans have been granted
as indicated in paragraph 4(iii)(a) of the Companies
(Auditor’s Report) Order, 2003 (hereinafter
referred to as the Order), the rate of interest and
other terms and conditions of the loans granted,
are, prima-facie, not prejudicial to the interest of
the Company.
(c) According to the information and explanations
given to us, the parties, to whom the loans have
been granted by the Company, as referred to in
paragraph 4(iii)(a) above, have been regular in
repayment of principal amount as stipulated and
have been regular in payment of interest where
charged.
(d) According to the information and explanations
given to us, there are no overdue amounts in
respect of the loans granted as referred to in
paragraph 4(iii)(a) above and interest thereon
where charged.
(e) According to the information and explanations
given to us, unsecured loans taken by the
Company from companies, firms or other parties
covered in the register maintained under section
301 of the Companies Act, 1956, are by way of
DSCL ANNUAL REPORT ‘08-’09
fixed deposit aggregating Rs. 0.09 crore
(maximum amount outstanding during the year
Rs. 0.09 crore) from a director and his relative
which is outstanding as at the year end.
(f) In our opinion, the rate of interest and other terms
and conditions of unsecured loans taken by the
Company are not, prima facie, prejudicial to the
interest of the Company.
(g) In our opinion, the Company is regular in payment
of the principal amount and the interest thereon.
(iv) In our opinion and according to the information and
explanations given to us, there are adequate internal
control system commensurate with the size of the
Company and the nature of its business with regard to
the purchase of inventories and fixed assets and with
regard to sale of goods and services. Further, on the
basis of our examination and according to the
information and explanations given to us, we have
neither come across nor have been informed of any
instance of major weaknesses in the aforesaid internal
control system.
(v) According to the information and explanations given
to us, during the year, there were no transactions that
were required to be entered in the register maintained
in pursuance of section 301 of the Companies Act,
1956 ( “The Act”). For this purpose the Company has
taken the view that the transactions which are
subjected to the provisions of section 299(6) of the
Act are not required to be entered in this register. In
any case, notwithstanding the view of section 299(6)
of the Act taken by the Company, in respect of certain
transactions, exceeding the value of
Rs. 5 lacs in respect of any party during the year, these
have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and
explanations given to us, the Company has complied
with the provisions of section 58A, section 58AA or
any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits)
Rules, 1975, with regard to the deposits accepted from
the public. As per information and explanations given
to us, no order under the aforesaid sections has been
passed by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company.
(vii) In our opinion, the Company has an internal audit
system commensurate with the size and nature of its
business.
(viii) We have broadly reviewed the books of account
maintained by the Company in respect of products
where, pursuant to the Rules made by the Central
Government, the maintenance of cost records has been
prescribed under section 209(1) (d) of the Companies
Act, 1956 and are of the opinion that, prima facie, the
prescribed accounts and records have been made and
maintained. We have not, however, made a detailed
examination of the records with a view to determining
whether they are accurate or complete.
38
 Auditors’ Report (Continued)

(ix) (a) According to the information and explanations
given to us and the records of the Company
examined by us, the Company has generally been
regular in depositing undisputed statutory dues
including provident fund, investor education
protection fund, employees’ state insurance,
income-tax, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material
statutory dues applicable to it. We are informed
that there are no undisputed statutory dues as at
the year end outstanding for a period of more than
six months from the date they became payable.
(b) According to the information and explanations
given to us and the records of the Company
examined by us, there are no disputed dues of
wealth tax, customs duty, service tax and cess
matters.
According to the information and explanations
given to us and the records of the Company
examined by us, the details of disputed dues not
paid of excise duty, sales tax and income-tax dues
as at March 31, 2009 are as follows:

Nature of the Nature of Forum where Amount* Amount paid Period to which the
statute the dues pending (Rs. Crores) under protest amount relates
(Rs. Crores)
Central Excise Law Excise duty Appellate authority up 2.14 – 1995-96, 2001-02, 2003-04,
to commissioners’ level 2005-06, 2006-07, 2007-08,
Central Excise and 0.15 0.06 1997-98, 2003-04
Service Tax Appellate Tribunal
Sales Tax Laws Sales tax Appellate authority up 3.70 1.15 1983-84, 1994-95, 1995-96,
to commissioners’ level to 2000-01, 2005-06
2006-07, 2007-08
Income Tax Act, 1961 Income tax Commissioner (Appeal) 31.86 31.86 2004-05, 2005-06
Income Tax Appellate Tribunal 8.10 8.10 2002-03, 2003-04

* amount as per demand orders including interest and penalty wherever quantified in the Order

(x) The Company does not have accumulated losses at
the end of the financial year March 31, 2009. Further,
the Company has not incurred any cash losses during
the financial year ended March 31, 2009 and in the
immediately preceding financial year ended March 31,
2008.
(xi) According to the records of the Company examined
by us and the information and explanations given to
us, the Company, during the year, has not defaulted
in repayment of dues to financial institutions, banks
or debenture holders.
(xii) As the Company has not granted any loans and
advances on the basis of security by way of pledge
of shares, debentures and other securities, paragraph
4 (xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund or nidhi/mutual
benefit funds/society, paragraph 4 (xiii) of the Order
is not applicable.
(xiv) As the Company is not dealing or trading in shares,
securities, debentures and other investments,
paragraph 4 (xiv) of the Order is not applicable.
(xv) As the Company has not given any guarantees during
the year for loans taken by others from banks or
financial institutions, paragraph 4 (xv) of the Order is
not applicable.
(xvi) In our opinion and according to the information and
explanations given to us, the term loans taken during
the year have been applied for the purpose for which
they were obtained.
(xvii) According to information and explanations given
to us and on an overall examination of the balance
sheet of the Company,we report that short term
funds have not been used to finance long term
investments.
(xviii) As the Company has not made any preferential
allotment of shares during the year, paragraph 4 (xviii)
of the Order is not applicable.
(xix) According to information and explanations given to
us, no security has been created for debentures issued
during the year since they are unsecured.
(xx) Since the Company has not raised any money by way
of public issue during the year, paragraph 4 (xx) of
the Order is not applicable.
(xxi) Based upon the audit procedures performed and
information and explanations given by the
management, we report that no fraud by
the Company and no material fraud on the Company
has been noticed or reported during the course of our
audit for the year ended March 31, 2009.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Jaideep Bhargava
New Delhi Partner
Date : June 3, 2009 Membership No.: 90295

DSCL ANNUAL REPORT ‘08-’09 39

 DCM SHRIRAM
Balance Sheet as at March 31, 2009 CONSOLIDATED LIMITED

Schedule As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Sources of Funds
Shareholders’ funds
Share capital 1 33.34 33.34
Reserves and surplus 2 1198.25 1111.99
1231.59 1145.33
Loan funds 3
Secured 1356.71 1234.21
Unsecured 604.91 523.70
1961.62 1757.91
Deferred tax liabilities (net) 4 143.94 171.20
Total 3337.15 3074.44
Application of Funds
Fixed assets 5
Gross block 2865.21 2310.84
Less : Depreciation 753.35 617.00
Net block 2111.86 1693.84
Capital work in progress 28.52 270.36
2140.38 1964.20
Investments 6 55.63 54.64
Current assets, loans and advances 7
Inventories 745.32 783.06
Sundry debtors 339.54 239.34
Cash and bank balances 33.30 46.56
Loans and advances 402.50 332.37
Other current assets 175.52 143.48
1696.18 1544.81
Less: Current liabilities and provisions 8
Current liabilities 450.82 402.95
Provisions 104.22 86.26
555.04 489.21
Net current assets 1141.14 1055.60
Total 3337.15 3074.44
Notes to the accounts 12
Per our report attached
For DELOITTE HASKINS & SELLS VIKRAM S. SHRIRAM AJAY S. SHRIRAM
Chartered Accountants Vice Chairman & Managing Director Chairman & Sr. Managing Director

Jaideep Bhargava B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Partner Company Secretary Dy. Managing Director N.J. SINGH
Membership No.: 90295 PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 40

 DCM SHRIRAM
Profit and Loss Account for the year ended March 31, 2009 CONSOLIDATED LIMITED

Schedule Year ended Year ended

March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Income
Gross sales 3571.34 2685.59
Less : Excise duty 180.56 196.04
Net sales 3390.78 2489.55
Other income 9 48.43 34.79
Total income 3439.21 2524.34
Expenditure
Manufacturing and other expenses 10 2250.44 1912.88
Purchases for resale 819.54 401.47
Interest - On debentures and other fixed loans 122.46 75.64
- Others 24.34 9.09
Depreciation 146.41 122.13
Total expenditure 3363.19 2521.21
Profit before tax and exceptional item 76.02 3.13
Exceptional item:
-Profit on sale of SBM land redevelopment project - 779.64
Profit before tax 76.02 782.77
Provision for taxation 11 (25.77) 111.78
Profit after tax 101.79 670.99
Transfer from debenture redemption reserve 1.50 5.17
Balance brought forward from the previous year 461.53 251.37
Profit available for appropriation 564.82 927.53
Appropriations
Proposed dividends (equity shares)
- Interim - 49.77
- Final 13.27 6.64
Corporate dividend tax 2.26 9.59
General reserve 50.00 400.00
Balance carried to balance sheet 499.29 461.53
Earnings per share - basic/diluted (Rs.)
(Refer note 5 in schedule 12)
-Before exceptional item 6.14 (0.18)
-After exceptional item 6.14 40.44
Notes to the accounts 12

Per our report attached to the balance sheet

For DELOITTE HASKINS & SELLS VIKRAM S. SHRIRAM AJAY S. SHRIRAM
Chartered Accountants Vice Chairman & Managing Director Chairman & Sr. Managing Director

Jaideep Bhargava B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Partner Company Secretary Dy. Managing Director N.J. SINGH
Membership No.: 90295 PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 41

 DCM SHRIRAM
Cash Flow Statement for the year ended March 31, 2009 CONSOLIDATED LIMITED

Year ended Year ended

March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores Rs. Crores Rs. Crores
A. Cash flow from operating activities
Net profit before tax and exceptional item 76.02 3.13
Adjustments for :
Depreciation 146.41 122.13
Loss on sale of fixed assets 1.20 0.13
Finance charges 1.88 3.05
Interest expense 146.80 84.73
Less: interest and dividend income (19.66) 127.14 (7.71) 77.02
Operating profit before working capital changes 352.65 205.46
Adjustments for :
Trade and other receivables (net) (185.96) 64.38
Inventories 37.74 (224.93)
Trade and other payables 84.45 (444.93)
Cash generated from operations 288.88 (400.02)
Income taxes paid (15.93) (111.90)
Net cash from/(used) in operating activities 272.95 (511.92)
B. Cash flow from investing activities
Purchase of fixed assets (355.21) (352.24)
Sale of fixed assets 3.09 3.89
Purchase of trade long term investment (1.55) -
Purchase of non-trade long term investments (0.27) (20.65)
Sale of non-trade long term investments 0.83 -
Purchase of non-trade current investments (7,077.49) (5,021.96)
Sale of non-trade current investments 7,077.49 5,021.96
Loans and advances to subsidiary companies (1.12) (47.93)
Interest received 16.80 4.08
Dividend received 2.15 1.67
Cash flow from investing activities before exceptional item (335.28) (411.18)
Exceptional item - 832.59
Net cash from/(used) in investing activities (335.28) 421.41
C. Cash flow from financing activities
Proceeds from borrowings 9,688.94 6,854.39
Repayment of borrowings (9,404.94) (6,584.65)
Finance charges (1.88) (3.05)
Changes in working capital borrowings (79.84) (32.92)
Dividends paid (6.64) (56.41)
Corporate dividend tax paid (1.13) (9.59)
Interest paid (145.30) (83.61)
Net cash from financing activities 49.21 84.16
Net increase/(decrease) in cash and cash equivalents (13.12) (6.35)
Cash and cash equivalents as at opening
Cash and cheques in hand and balance with banks 46.13 52.48
Cash and cash equivalents as at closing
Cash and cheques in hand and balance with banks 33.01 46.13

Per our report attached to the balance sheet

For DELOITTE HASKINS & SELLS VIKRAM S. SHRIRAM AJAY S. SHRIRAM
Chartered Accountants Vice Chairman & Managing Director Chairman & Sr. Managing Director

Jaideep Bhargava B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Partner Company Secretary Dy. Managing Director N.J. SINGH
Membership No.: 90295 PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 42

 DCM SHRIRAM
Schedules to the Accounts CONSOLIDATED LIMITED

1. SHARE CAPITAL
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Authorised
24,99,50,000 (2007-2008 - 24,99,50,000) Equity shares 49.99 49.99
of Rs. 2 each
65,01,000 (2007-2008 - 65,01,000) Cumulative
redeemable preference shares of Rs.100 each 65.01 65.01
115.00 115.00
Issued
16,98,03,320 (2007-2008 - 16,98,03,320) Equity shares
of Rs. 2 each 33.96 33.96

Subscribed and paid up

16,59,03,320 (2007-2008 - 16,59,03,320) Equity shares
of Rs. 2 each fully called-up 33.18 33.18
Add: Forfeited shares - Amount originally paid up 0.16 33.34 0.16 33.34
33.34 33.34

NOTES:
Of the issued, subscribed and paid-up capital,
- 2,87,75,380 equity shares of Rs. 2 each represent the equity shares issued on October 9, 1990 to the
members of undivided DCM Limited in the ratio of one share for every four shares held by the members in
undivided DCM Limited, in terms of the Scheme of Arrangement effective from April 1, 1990, without payment
being received in cash.
- 8,29,51,660 equity shares of Rs. 2 each fully paid up were allotted and issued as bonus shares by
capitalisation of Capital Redemption Reserve.

2. RESERVES AND SURPLUS

As at As at
March 31, 2008 Additions Deductions March 31, 2009
Rs. Crores Rs. Crores Rs. Crores Rs. Crores
Capital redemption reserve 8.41 - - 8.41
Share premium account 62.76 - - 62.76
Debenture redemption reserve 1.50 - 1.50# -
General reserve 577.79 50.00 - 627.79
Profit and loss account 461.53 37.76 - 499.29
1111.99 87.76 1.50 1198.25
# Transfer to profit and loss account on redemption.

DSCL ANNUAL REPORT ‘08-’09 43

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

3. LOAN FUNDS
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Secured
Debentures - 3.00
Loans from banks
On cash credit account 114.21 194.05
Others 751.57 818.44
Other Loans 490.93 218.72
1356.71 1234.21
Unsecured

Deposits
Fixed 3.31 5.08
Others 30.90 29.80
Interest accrued and due on deposits 0.19 0.64
Short term loans and advances
Banks 570.51 488.18
604.91 523.70
1961.62 1757.91

Secured
1. Debentures:
i) Debentures detailed below are secured by English first mortgage on the Company’s property at Taluka Kalol, District
Gandhinagar, Gujarat and first equitable mortgage/charge on immovable/movable properties, both present and future,
of the Company’s undertakings at Kota, Rajasthan, subject to charges created/to be created in favour of the Company’s
bankers on stocks, stores and book debts for securing borrowings for working capital, and shall rank pari-passu in all
respects with the security created or to be created in terms of the stipulations of the respective Trust Deeds:
a) Nil (2007-2008 – 5,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable
in three equal annual instalments commencing from November 1, 2006. The third & final instalment has been paid
during the year (Rs. Nil due within a year, 2007-08 – Rs. 1.67 crores)
ii) Debentures detailed below are secured by English first mortgage on the Company’s property at Taluka Kalol, District
Gandhinagar, Gujarat and first equitable mortgage/charge created on immovable/movable properties both present and
future, of the Company’s undertaking at District Bharuch, Gujarat (save and except book debts) subject to charges
created in favour of the Company’s bankers on stocks, stores and book debts for securing borrowings for working
capital and shall rank pari-passu with existing charges created/to be created in favour of other first chargeholders:
a) Nil (2007-2008– 4,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in
three equal annual instalments commencing from November 1, 2006. The third & final instalment has been paid
during the year (Rs. Nil due within a year, 2007-2008 – Rs. 1.33 crores)
2. Short term working capital borrowings from Banks:
i) Loans from banks on cash credit account of Rs. 114.21 crores (2007-2008 – Rs. 194.05 crores) are secured by first
charge on whole of the current assets of the company, both present and future. These loans are further secured by a
third charge by way of mortgage/hypothecation of all the immovable/movable properties (other than current assets) of
the Company’s undertakings at Kota in Rajasthan and Ajbapur, Rupapur, Loni & Hariawan in Uttar Pradesh.
ii) Short Term Loan of Rs. 43.49 crores (2007-2008- Rs. 85.27 crores) from a bank is secured by 50,000 6.65% Fertiliser
Companies GOI Special Bonds 2023 (2007-2008 – 90,000 7.95% Fertiliser Companies GOI Special Bonds 2026), by
way of Repo transactions.
3. Other loans:
(i) Term loans of Rs. 142.08 crores (2007-2008 – Rs. 154.13 crores) from banks are secured by way of first pari passu
mortgage/charge created on immovable/movable fixed assets, both present and future, term loan of Rs. 12.00 crores
(2007-2008 – Rs. 12.00 crores) from others is secured by way of first pari passu mortgage on immovable properties

DSCL ANNUAL REPORT ‘08-’09 44

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

and first charge by way of hypothecation of all movables (save and except book debts), both present and future, subject
to prior charges created in favour of the Company’s bankers on the current assets for securing working capital borrowings,
a term loan of Rs. Nil (2007-2008 – Rs. 20.00 crores) from a bank was secured by way of second mortgage/charge
created on immovable and movable fixed assets, both present and future and term loan of Rs. 126.71 crores
(2007-2008 – Rs. Nil) from others is secured by way of first pari passu mortgage/charge created/to be created on
immovable and movable assets (excluding current assets), both present and future and a second charge ranking pari
passu on the current assets, both present and future of the Company’s undertakings at Jhagadia, Distt Bharuch, Gujarat
(Rs. 7.95 crores due within a year; 2007-2008 – Rs. 30.80 crores)
(ii) Term loans of Rs. 125.85 crores (2007-2008 – Rs. 128.47 crores) from banks are secured by way of first pari passu
mortgage/charge created on immovable/movable fixed asset both present and future, term loan of Rs. 18.00 crores
(2007-2008 – Rs. 18.00 crores) from others is secured by way of first pari passu mortgage on immovable properties
and first charge by way of hypothecation of all movables (save and except book debts), both present and future, subject
to prior charges created in favour of the Company’s bankers on the current assets for securing working capital borrowings,
term loans of Rs. Nil (2007-2008 – Rs.50.00 crores) from banks were secured by way of second mortgage/charge
created on immovable/movable fixed assets, both present and future and term loans of Rs. 258.48 crores (2007-2008
Rs. 120.03 crores) from others are secured by way of first pari passu mortgage/charge created/to be created on
immovable and movable assets (excluding current assets), both present and future and a second charge ranking pari
passu on the current assets, both present and future of the Company’s undertakings at Kota, Rajasthan
(Rs. 41.39 crores due within a year; 2007-2008 – Rs. 87.87 crores).
(iii) Term loan of Rs. 1.32 crores (2007-2008 – Rs. 3.32 crores) from a bank is secured by way of first mortgage, ranking pari
passu, on immovable/movable fixed assets, both present and future, pertaining to the Company’s Ajbapur Sugar Complex
and Rupapur Sugar Complex, Uttar Pradesh, (Rs. 1.32 crores due within a year; 2007-2008 – Rs. 2.00 crores).
(iv) Term loan of Rs. 33.33 crores (2007-2008 – Rs. 41.67 crores) from a bank is secured by way of first pari passu
mortgage/charge created on immovable/movable fixed assets, both present and future, term loans of Rs. 94.37 crores
(2007-08: Rs. 74.23 crores) from banks are secured by way of first pari passu mortgage/charge created on immovable/
movable assets, both present and future, subject to any prior charges created in favour of the Company’s bankers on
the current assets for securing working capital borrowings and term loans of Rs. 42.29 crores (2007-2008 –
Rs. 42.29 crores) from others are secured by way of a exclusive second charge on movable assets (save and
except book debts) both present and future, pertaining to the Company’s Ajbapur Sugar Complex, Uttar Pradesh
(Rs. 31.47 crores due within a year; 2007-2008 – Rs. 8.33 crores)
(v) Term loan of Rs. 101.36 crores (2007-2008 – Rs. 80.00 crores) from a bank is secured by way of first mortgage/
charge created on immovable/movable assets, both present and future, subject to prior charges created in favour of
Company’s bankers on current assets for securing working capital borrowings, term loan of Rs. 7.50 crores
(2007-2008 – Rs. 7.50 crores) from a bank is secured by way of first pari passu mortgage/charge created on immovable/
movable fixed assets, both present and future, pertaining to the Company’s Loni Sugar Complex, Uttar Pradesh.
(Rs. 0.18 Crores due within a year; 2007-2008 – Rs. Nil)
(vi) Term loan of Rs. 94.37 crores (2007-2008 – Rs. 74.23 crores) from a bank is secured by way of first pari passu
mortgage/charge created on immovable/movable assets, both present and future, subject to any prior charges created
in favour of the Company’s bankers on the current assets for securing working capital borrowings, term loan of
Rs. 7.50 crores (2007-08 – Rs. 7.50 crores) from a bank is secured by way of first pari passu mortgage/charge
created on immovable/movable fixed assets both present and future and term loan of Rs. 33.45 crores (2007-2008 –
Rs. 26.40 crores) from others is secured by way of first pari passu mortgage/charge created on immovable/movable
assets (excluding current assets) both present and future, and a second charge ranking pari passu on the current assets,
both present and future of the Company’s Hariawan Sugar Complex, Uttar Pradesh. (Rs. 25.61 crores due within a
year; 2007-2008 – Rs. Nil)
(vii) Term loan of Rs. 30.25 crores (2007-2008 – Rs. 35.69 crores) from a bank is secured by way of first mortgage/charge
created on immovable/movable fixed assets, both present and future pertaining to the Company’s Rupapur Sugar
Complex, Uttar Pradesh. (Rs. 15.12 crores due within a year; 2007-2008 – Rs. 11.90 crores)
(viii) Term loan of Rs. 56.43 crores (2007-2008 – Rs. 56.43 crores) from a bank is secured by way of residual mortgage/
charge created on immovable/movable fixed assets, both present and future pertaining to all the four sugar units of the
Company, i.e. Ajbapur Sugar Complex, Uttar Pradesh, Rupapur Sugar Complex, Uttar Pradesh, Hariawan Sugar Complex,
Uttar Pradesh & Loni Sugar Complex, Uttar Pradesh. (Rs. 4.70 crores due within a year; 2007-2008– Rs. Nil)
(ix) Term Loan of Rs. 13.72 crores (2007-2008 – Rs. Nil) from a bank secured by way of equitable mortgage of Land/
Building, both present and future, of SBM unit of the Company at Tonk, Rajasthan. (Rs. Nil due within a year;
2007-2008 – Rs. Nil)

DSCL ANNUAL REPORT ‘08-’09 45

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

4. DEFERRED TAX LIABILITIES AND ASSETS

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Deferred tax liabilities
Depreciation 234.35 211.30
234.35 211.30
Deferred tax assets
Provision for gratuity and leave encashment 26.04 22.57
Provision for doubtful debts and advances 3.40 3.13
Others 60.97 14.40
90.41 40.10
Deferred tax liabilities (net) 143.94 171.20

5. FIXED ASSETS
GROSS BLOCK DEPRECIATION NET BLOCK
Description As at As at Up to For Up to As at As at
March 31, Additions Deductions March 31, March 31, the year Deductions March 31, March 31, March 31,
2008 2009 2008 2009 2009 2008
Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores

Land 104.35 16.18 - 120.53* - - - - 120.53 104.35

Buildings 290.17 117.13 0.87 406.43 24.73 8.56 0.39 32.90 373.53 265.44
Plant and machinery 1812.65 385.95 8.02 2190.58$ 542.23 120.82 5.90 657.15 1533.43 1270.42
Furniture and fittings 44.88 38.53 1.32 82.09 21.25 9.11 0.82 29.54 52.55 23.63
Vehicles 22.79 8.22 4.14 26.87 11.27 3.76 2.95 12.08 14.79 11.52
Intangibles
Technical Know how 23.79 - - 23.79 12.46 2.39 - 14.85 8.94 11.33
Brand 8.22 - - 8.22 3.75 0.68 - 4.43 3.79 4.47
Software 3.99 2.71 - 6.70 1.31 1.09 - 2.40 4.30 2.68

This year 2310.84 568.72** 14.35 2865.21 617.00 146.41 10.06 753.35 2111.86
Previous year 2145.61 173.13 7.90 2310.84 498.74 122.14# 3.88 617.00 1693.84
Capital work in progress 28.52 270.36
(including capital advances)
2140.38 1964.20

* Includes Rs. 2.30 crores (2007-2008 - Rs. 1.90 crores) pertaining to land situated at Hardoi and Hyderbad pending registration in favour of the Company.
$ Includes Rs. 0.16 crores (2007-2008 - Rs. 0.16 crores) in respect of certain plant and machinery retired from active use and held for disposal.
# Includes Rs. Nil (2007-2008 - Rs. 0.01 crores) transfer to capital work in progress/fixed assets.
** Includes addition of Rs. 3.89 crores (2007-2008 - Rs. 0.05 crores) on account of foreign exchange fluctuation

DSCL ANNUAL REPORT ‘08-’09 46

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

6. INVESTMENTS

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Long Term
(valued at cost unless there is permanent fall in value thereof)
Trade Investments
Unquoted
7,95,009 (2007-2008 - 7,95,009) Equity shares of Rs.10 each
fully paid up of Bharuch Eco Aqua Infrastructure Limited 0.79 0.79
45,50,000 (2007-2008 - 30,00,000) Equity shares of Rs. 10
each fully paid up of Forum I Aviation Private Limited.15,50,000 4.55 3.00
Equity shares alloted during the year
Non-trade Investments
Government securities
Unquoted
National savings certificates 0.03 0.01
Investment in Shares, Units, etc.
Quoted
Nil (2007-2008 - 83,115) 6.75% Bonds of Rs.100 each fully
paid-up of Unit Trust of India. 83,115 units redeemed
during the year - 0.83
Unquoted
500 (2007-2008 - 500) 5.5% Bonds of Rs. 10,000 each fully 0.50 0.50
paid-up of Rural Electrification Corporation Limited
Investment in Subsidiaries
Unquoted
60,01,208 (2007-2008 - 60,01,208) Equity shares of Rs.10
each fully paid-up of DCM Shriram Credit and Investments Limited 0.22 0.22
83,51,207 (2007-2008 - 83,51,207) Equity shares of Rs.10
each fully paid-up of DCM Shriram Aqua Foods Limited 4.22 4.22
29,19,058 (2007-2008 - 29,19,058) Equity shares of Rs.10
each fully paid-up of Shriram Bioseed Genetics India Limited 8.78 8.78
2,00,000 (2007-2008 - 50,000) Equity shares of Rs. 10 each fully
paid up of DCM Shriram Energy and Infrastructure Ltd. 1,50,000 0.20 0.05
equity shares of Rs. 10 each fully paid up allotted during the year
17,33,207 (2007-2008 - 17,33,207) Equity shares of Rs. 10
each fully paid-up of DSCL Energy Services Company Limited 1.73 1.73

DSCL ANNUAL REPORT ‘08-’09 47

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

6. INVESTMENTS (Continued)

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores

11,74,551 (2007-2008 - 11,74,551) Equity shares of US $ 1

each fully paid-up of Bioseeds Limited 14.41 14.41
50,000 (2007-2008 - 50,000) Equity shares of Rs. 10 each fully
paid up of Hariyali Rural Ventures Limited 0.05 0.05
50,000 (2007-2008 - Nil) Equity shares of Rs. 10 each fully
paid up of SBM Yarn Limited allotted during the year 0.05 -
50,000 (2007-2008 - Nil) Equity shares of Rs. 10 each fully
paid up of Fenesta Building Systems Limited allotted during the year 0.05 -
40,50,000 (2007-08 - 40,50,000) Equity shares of Rs. 10 each
fully paid up of Shriram Bioseed Ventures Limited 20.05 20.05
17,50,280 (2007-2008 - Nil) Equity shares of 10 each fully paid up
of Shri Ganpati Fertilizer Limited acquired during the year # (Re. 1) # -
TOTAL: 55.63 54.64
Aggregate book value - Quoted - 0.83
- Unquoted 55.63 53.81
Aggregate market value - Quoted - 0.84

7. CURRENT ASSETS, LOANS AND ADVANCES

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Current Assets
Inventories
Stores and spares* 86.06 70.72
Stock-in-trade**
Raw materials 93.71 70.55
Process Stock 11.56 10.34
Finished goods 553.99 631.45
745.32 783.06
Sundry debtors
Debts over six months
Secured - considered good 0.11 0.04
Unsecured - considered good 82.30 28.62
- considered doubtful 8.81 8.55
Other debts
Secured - considered good 18.51 3.85
Unsecured - considered good 238.62 206.83
348.35 247.89
Less: Provision for doubtful debts 8.81 8.55
339.54 239.34
DSCL ANNUAL REPORT ‘08-’09 48
 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

7. CURRENT ASSETS, LOANS AND ADVANCES (Continued)

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Cash and bank balances
Cash on hand 1.11 3.88
Cheques in hand 2.13 5.98
With scheduled banks on
Current account 28.60 35.73
Deposit account # 1.46 0.97
33.30 46.56
Loans and Advances
Unsecured and considered good unless otherwise stated$
Advances recoverable in cash or in kind or for value to be received
Considered good 237.70 201.39
Considered doubtful 1.18 0.63
Less : Provision for doubtful advances 1.18 0.63
237.70 201.39
Deposits 53.09 21.07
Balances with customs, excise etc. 53.95 67.30
Tax payments (net of provision for current tax and Fringe benefit tax)@ 46.72 40.28
MAT credit entitlement 8.00 -
Interest accrued on investments and deposits 3.04 2.33
402.50 332.37
Other current assets (trade)**
(refer note 8 of schedule 12)
16400 (2007-2008 - 30000) 8.3% Fertiliser companies GOI
special bond 2023 of Rs. 10,000 each fully paid-up,
13600 (2007-08 - 10000) sold during the year 16.40 30.00
62400 (2007-2008 - 1,23,000) 7.95% Fertiliser companies GOI
special bond 2026 of Rs.10,000 each fully paid-up
60600 (2007-08 - Nil) sold during the year 62.40 123.00
56000 (2007-2008 - Nil) 7% Fertiliser companies GOI
special bond 2022 of Rs.10,000 each fully paid-up issued
during the year 56.00 -
50470 (2007-2008 - Nil) 6.65% Fertiliser companies GOI
special bond 2023 of Rs.10,000 each fully paid-up issued
during the year ## 50.47 -
185.27 153.00
Less : Provision for diminution in the value of fertiliser bonds 9.75 9.52
175.52 143.48
1696.18 1544.81

* Stores and spares are valued at cost or under.

** Stock-in-trade and other current assets is valued at cost or net realisable value, whichever is lower.
# Includes Rs. 0.29 crore (2007-2008 Rs. 0.43 crore) provided as margin for bank guarantees and letter of credit
$ Refer note 7 of Schedule 12.
@ Includes Rs. Nil (2007-2008 Rs.11.76 crores) MAT credit adjusted during the year
## Also refer note 2 (ii) of schedule 3

DSCL ANNUAL REPORT ‘08-’09 49

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

8. CURRENT LIABILITIES AND PROVISIONS

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Current Liabilities
Sundry creditors #
Total outstanding dues of micro and small enterprise * 0.99 0.17
Total outstanding dues of creditors other
than micro and small enterprise 436.48 391.20
Ex-gratia payable under voluntary retirement schemes ** 1.21 1.39
Interest accrued but not due on loans 12.14 10.19
450.82 402.95
Provisions
Gratuity 46.70 40.54
Compensated absences 29.90 25.86
Provision for contingencies 12.09 12.09
Proposed dividends 13.27 6.64
Corporate dividend tax 2.26 1.13
104.22 86.26
555.04 489.21

# Sundry creditors do not include any amounts outstanding as on March 31, 2009 which are required to be
credited to Investor Education and Protection Fund.
* Refer note 6 of schedule 12
** Rs. 0.18 crore (2007-2008 - Rs.0.18 crore) due within a year.

9. OTHER INCOME

Year ended Year ended

March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores

Dividend income (gross) from:

- non trade, current investments 2.15 1.67
Profit on sale of fertiliser bonds 0.06 -
Interest income # 17.51 6.04
Rent 4.42 3.07
Liabilities/provisions no longer required written back 2.34 2.22
Miscellaneous 21.95 21.79
48.43 34.79

# Income-tax deducted at source -Rs. 0.56 crore (2007-2008 - Rs. 0.66 crore)

DSCL ANNUAL REPORT ‘08-’09 50

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

10. MANUFACTURING AND OTHER EXPENSES

Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Raw materials consumed 1096.91 1183.59
Stores, spares and components 136.00 141.37
Power, fuel, etc. 444.97 358.35
Repairs
Buildings 3.98 3.69
Plant and machinery 18.42 25.67
Salaries, wages, bonus, gratuity, commission, etc. 209.15 168.07
Provident and other funds 16.39 15.58
Welfare 11.06 8.98
Rent 16.21 9.63
Insurance 7.76 6.62
Donation 0.28 2.89
Rates and taxes 1.33 1.52
Auditors’ remuneration
Audit fee 0.55 0.48
Tax audit 0.07 0.02
Other services 0.53 0.42
Out-of-pocket expenses 0.01 0.04
Directors’ fees 0.09 0.07
Bad debts and advances written off 1.25 0.42
Provision for doubtful debts and advances 1.10 1.05
Freight and transport 59.54 50.70
Commission to selling agents 3.05 1.85
Brokerage, discounts (other than trade discounts), etc. 2.08 1.55
Selling expenses 27.32 20.54
Exchange fluctuation 36.74 13.19
Loss on sale of fertiliser bonds - 0.15
Loss on sale/write off of fixed assets 1.20 0.13
Increase/(decrease) in excise duty on finished goods (14.71) 10.57
Provision for diminution in the value of fertiliser bonds 7.21 9.52
Provisions for losses on derivative transactions - 2.42
Miscellaneous expenses 86.71 73.28
2175.20 2112.36
Less:- Cost of own manufactured goods capitalised (1.00) (0.84)
2174.20 2111.52
(Increase)/decrease in stocks of finished goods and process stocks
Closing stocks 565.55 641.79
Less : Opening stocks 641.79 443.15
76.24 (198.64)
2250.44 1912.88

11. CURRENT/DEFERRED TAX

Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
-Current tax 8.00 102.77
Less: MAT credit entitlement 8.00 - - 102.77
- Deferred tax (3.03) 6.58
- Fringe benefit tax 3.65 2.43
- Adjustments related to earlier year
current tax (2.16) -
deferred tax (24.23) (26.39) - -
(25.77) 111.78

DSCL ANNUAL REPORT ‘08-’09 51

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

12. NOTES TO THE ACCOUNTS

1. Significant accounting policies
(i) Accounting convention
The financial statements are prepared under the historical cost convention. These statements have
been prepared in accordance with applicable mandatory Accounting Standards and relevant presentational
requirements of the Companies Act, 1956.
(ii) Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition or construction is
inclusive of freight, duties, taxes and incidental expenses and interest on loans attributable to the
acquisition of assets up to the date of commissioning of assets. Capital subsidy received against
specific assets is reduced from the value of relevant fixed assets.
The Company is following the straight line method of depreciation in respect of buildings, plant and
machinery and written down value method in respect of other assets.
Depreciation is provided at the rates as specified in schedule XIV to the Companies Act, 1956, except
in the case of following assets where depreciation is provided at rates indicated against each asset:
Depreciation Rate
- catalyst tubes 12.50%
- cell units 10.00%
- certain other plant and machinery items 16.67%
- office and other equipments 25.00%
Depreciation is calculated on a pro-rata basis from the date of additions, except in the case of assets
costing upto Rs. 5000 each, where each such asset is fully depreciated in the year of purchase.
Depreciation (amortisation) on intangibles is provided on straight line method as follows:
- Technical know-how is amortised over its estimated economic useful life of 10 years.
- Brand is amortised over a period of 10 years.
- Software is amortised over a period of 5 years.
On assets sold, discarded, etc. during the year, depreciation is provided upto the date of sale/discard.
(iii) Foreign currency transactions and derivatives
Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing at
the time of transaction.
Monetary items (i.e. receivables, payables, loans etc.) denominated in foreign currency are reported
using the closing exchange rate on each balance sheet date.
The exchange differences arising on the settlement of monetary items or on reporting these items at
rates different from rates at which these were initially recorded/reported in previous financial statements
are recognized as income/expense in the period in which they arise except that the exchange differences
arising till the commissioning of fixed assets, relating to borrowed funds and liabilities in foreign currency
for acquisition of the fixed assets are adjusted to the cost of fixed assets.
In case of forward exchange contracts, the premium or discount arising at the inception of such
contracts, is amortised as income or expense over the life of the contract. Further exchange difference
on such contracts i.e. difference between the exchange rate at the reporting/settlement date and the
exchange rate on the date of inception of contract/the last reporting date, is recognized as income/
expense for the period except that the exchange differences, including premium or discount on forward
exchange contracts, arising till the commissioning of fixed assets, relating to borrowed funds and
liabilities in foreign currency for acquisition of the fixed assets are adjusted to the cost of fixed assets.

DSCL ANNUAL REPORT ‘08-’09 52

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

(iv) Inventories
Stores and spares are valued at cost or under. Stock-in-trade is valued at cost or net realisable value,
whichever is lower. The bases of determining cost (which also includes taxes and duties wherever applicable)
for different categories of inventory are as follows:-
Stores, spares and raw materials - Weighted average rate.
Stock-in-trade
Process stocks and finished goods - Direct cost plus appropriate share of overheads after giving credit
for other income and excluding certain expenses like ex-gratia
and gratuity.
By-products - At estimated realisable value

(v) Revenue recognition

a) Revenue in respect of sale of products is recognised at the point of despatch to customer.
b) Under the retention pricing scheme, the Government of India reimburses to the fertiliser industry, the
difference between the retention price based on the cost of production and selling price (as realised
from the farmers) as fixed by the Government from time to time, in the form of subsidy. The effect of
variation in input costs/expenses on retention price yet to be notified is accounted for by the Company
as income for the year based on its assessment of ultimate collection with reasonable degree of
certainty at the time of accrual.
c) The Company accrues concession/subsidy on traded Phosphatic and Potassic fertilisers pending
notification by Government of India, based on its assessment of ultimate collection thereof with reasonable
degree of certainty.
(vi) Investments
Long term investments are stated at cost unless there is a permanent fall in value thereof. Current
investments are stated at cost or net realisable value whichever is less.
(vii) Employee benefits
Company’s contributions paid/payable during the year to provident fund, superannuation fund and
employees’ state insurance corporation are recognised in the profit and loss account. For the Provident
Fund Trust administered by the Company, the Company is liable to meet the shortfall, if any, in payment
of interest at the rates declared by the Central Government, and such liability is recognised in the year
of shortfall.
Provisions for gratuity and compensated absences determined on an actuarial basis at the end of the
year are charged to revenue each year.
(viii) Research and development
The revenue expenditure on research and development is charged as an expense in the year in which it
is incurred. Capital expenditure is included in fixed assets.
(ix) Income-tax
The Income-tax liability is provided in accordance with the provisions of the Income-tax Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence, on timing differences, between
taxable income and accounting income. Deferred tax assets on unabsorbed depreciation and carry
forward losses are recognised on virtual certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.

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 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

This Year Previous Year

(Rs. Crores) (Rs. Crores)
2. (i) Contingent liabilities not provided for:
Claims* (excluding claims by employees where amount not
ascertainable) not acknowledged as debts:
Income tax matters 0.31 -
Sales tax matters 1.33 1.33
Excise matters 2.22 2.30
Additional premium on land 8.11 8.11
Others 6.10 7.08
Total 18.07 18.82
* All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion
of management the legal proceedings, when ultimately concluded, will not have a material effect on
results of operations or financial position of the Company.
(ii) Capital commitments (net of advances) 9.90 94.00
(iii) Guarantees given to financial institutions,
banks and other parties in respect of loans
availed by subsidiaries and other parties:
Amount guaranteed 2.44 1.85
Amount of loans outstanding 0.65 0.52
3. In accordance with past practice, the Company has taken revenue credits aggregating Rs. 46.81 crores
(2007-2008 - Rs. 14.21 crores) for urea subsidy claims, which are pending notification/final acceptance by
‘Fertiliser Industry Coordination Committee’ (FICC), Government of India, in pursuance of the Retention
Price Scheme administered for nitrogenous fertilisers. Similarly, revenue credits aggregating Rs. 17.38 crores
(2007-08 - Rs. 0.27 crores) for subsidy claims relating to Di-Ammonium Phosphate, Murite of Potash and
Single Super Phosphate have been taken which are pending notification of final rates of concession/subsidy by
the Government of India, Ministry of Chemicals and Fertilisers. Necessary adjustment to revenue credits so
accrued will be made on issuance of notification by FICC/Government of India, Ministry of Chemicals and
Fertilisers or final settlement thereof.
4. Segment reporting
A. Business segments:
Based on the guiding principles given in Accounting Standard AS-17 “Segment Reporting” notified under
Companies (Accounting Standard) Rules, 2006, the Company’s business segments include: Fertilisers
(manufacturing of urea), Chloro-Vinyl (manufacturing of poly-vinyl chloride, carbide and chlor alkali products),
Agri inputs (trading of di-ammonium phosphate, murite of potash, super phosphate, other fertilisers, seeds
and pesticides), Sugar (manufacturing of sugar products and co-generation of Power), Cement (manufacturing
of cement), Hariyali Kisaan Bazaar (Rural retail and agri businesses), Others (UPVC window systems,
textiles, plaster of paris and compounds). Sale of power from the power generation facilities set up for the
business segments is included in their respective results.
B. Geographical segments:
Since the Company’s activities/operations are primarily within the country and considering the nature of
products/services it deals in, the risks and returns are same and as such there is only one geographical
segment.
C. Segment accounting policies:
In addition to the significant accounting policies applicable to the business segments as set out in note 1
above, the accounting policies in relation to segment accounting are as under:
DSCL ANNUAL REPORT ‘08-’09 54
 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

a) Segment revenue and expenses:

Joint Revenue and joint expenses of segments are allocated amongst them on a reasonable basis. All
other segment revenue and expenses are directly attributable to the segments.
b) Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of operating
cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as
direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally
of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.
While most of the assets/liabilities can be directly attributed to individual segment, the carrying amount
of certain assets/liabilities pertaining to two or more segments are allocated to the segments on a
reasonable basis.
c) Inter segment sales:
Inter segment sales between operating segments are accounted for at market price. These transactions
are eliminated in consolidation.

D. Information about business segments:

Rs. Crores
PARTICULARS Fertiliser Agri Inputs Sugar Hariyali Kisaan Chloro-Vinyl # Cement Others Elimination Total
Bazaar
This Previous This Previous This Previous This Previous This Previous This Previous This Previous This Previous This Previous
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year

1. REVENUE
External sales 795.44 703.17 419.66 156.23 642.89 502.22 406.97 217.98 876.53 749.65 146.44 139.55 283.41 216.79 3571.34 2685.59
Inter segment sales 0.06 8.22 1.98 - 0.27 4.57 3.09 54.78 46.18 - 0.04 - - 67.57 51.62
Total revenue 795.44 703.23 427.88 158.21 642.89 502.49 411.54 221.07 931.31 795.83 146.44 139.59 283.41 216.79 67.57 51.62 3571.34 2685.59
2. RESULTS
Segment results 25.82 19.69 23.05 7.27 87.86 (4.99) (64.57) (29.64) 197.50 148.97 25.47 27.63 (3.49) (17.48) 291.64 151.45
Unallocated expenses (net of income) 68.82 63.59
Operating profit 25.82 19.69 23.05 7.27 87.86 (4.99) (64.57) (29.64) 197.50 148.97 25.47 27.63 (3.49) (17.48) 222.82 87.86
Interest expense 146.80 84.73
Profit before tax and exceptional items 76.02 3.13
Profit on sale of SBM land redevelopment project - 779.64
Profit before tax 76.02 782.77
Provision for taxation (25.77) 111.78
Net profit 101.79 670.99
3. OTHER INFORMATION
A. ASSETS
Segment assets 281.46 301.11 136.72 87.11 1276.54 1394.76 476.66 305.85 1009.25 909.26 35.49 36.09 228.97 178.72 3445.09 3212.90
Unallocated assets 447.10 350.75
Total assets 281.46 301.11 136.72 87.11 1276.54 1394.76 476.66 305.85 1009.25 909.26 35.49 36.09 228.97 178.72 3892.19 3563.65
B. LIABILITIES
Segment liabilities 77.69 94.94 68.02 28.11 69.52 140.32 39.81 25.38 196.23 128.90 13.84 10.30 27.84 20.36 492.95 448.31
Share capital and reserves 1231.59 1145.33
Secured and unsecured loans 1961.62 1757.91
Unallocated liabilities 206.03 212.10
Total liabilities 77.69 94.94 68.02 28.11 69.52 140.32 39.81 25.38 196.23 128.90 13.84 10.30 27.84 20.36 3892.19 3563.65
C. OTHERS
Capital expenditure 5.39 5.11 - 0.01 64.53 20.30 113.95 98.85 99.00 233.77 1.95 1.98 39.32 17.66
Depreciation 12.24 13.06 0.04 0.05 43.28 41.76 11.55 5.06 63.92 47.62 1.97 2.96 11.36 9.51
Non cash expenses other than depreciation 0.02 0.30 1.43 0.03 0.55 0.22 0.27 0.30 0.07 0.62

# As ‘Chemicals’ and ‘Plastics’ business of the Company have become more interrelated and similar during the year and based on the factors detailed in Accounting Standard (AS) - 17, ‘ Segment Reporting’ notified under Companies
(Accounting Standard) Rules, 2006, these segments have been combined into one segment namely ‘Chloro-Vinyl’

DSCL ANNUAL REPORT ‘08-’09 55

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

5. Earnings per share:

This year Previous year

Profit after tax and exceptional items (Rs. Crores) 101.79 670.99
Exceptional items, net of taxes of Rs. 105.62 crores (Rs. Crores) - 674.02
Profit/(loss) after tax but before exceptional item (Rs. Crores) 101.79 (3.03)
Weighted average number of equity shares outstanding 16,59,03,320 16,59,03,320
Basic and diluted earnings per share in rupees
(face value – Rs. 2 per share) :
- Before exceptional items 6.14 (0.18)
- After exceptional items 6.14 40.44
6. Based on the information available with the company, the principal amount and interest due to Micro and Small
Enterprise as defined under the “The Micro, Small, and Medium Enterprises Development Act, 2006” is Rs. 0.92
Crores (2007-2008 - Rs. 0.17 Crores) and Rs. 0.07 Crores (2007-2008 - Rs. Nil) respectively.
7. Loans and advances include following amounts due from subsidiaries:
Amount outstanding Maximum amount
as at year end outstanding during
the year
Name of the party This year Previous year This year Previous year
(Rs. Crores) (Rs. Crores) (Rs. Crores) (Rs. Crores)
1. DCM Shriram Credit and Investments Limited 6.25 7.33 41.91 36.06
2. Shriram Bioseed Genetics India Limited 6.98 12.04 12.71 19.77
3. DCM Shriram Aqua Foods Limited 0.09 0.03 0.09 0.09
4. DSCL Energy Services Company Limited 0.01 - 0.37 0.55
5. DCM Shriram Infrastructure Limited 24.54 22.60 24.54 22.60
6. Shriram Bioseed Ventures Limited 34.57 34.56 34.57 34.70
7. Shri Ganpati Fertilizers Limited 17.01 - 19.24 -
8. Hariyali Rural Ventures Limited 33.31 - 33.31 -
9. Hariyali Rural Foundation 0.04 - 0.12 -
10. DCM Shriram Energy and Infrastructure Limited 0.21 - 0.40 -
Total 123.01 76.56
8. The Government of India, Ministry of Fertilizers, issued fertilizers bonds aggregating Rs. 106.47 crores (2007-08 –
Rs. 163.00 crores) to the Company in lieu of fertilizer subsidy receivable to enable the companies to sell these bonds
in the market to realize its receivables. In accordance with this intent, the bonds have been classified as ‘Other Current
Assets’ during the year as against ‘Investments’ in previous year.
9. Details of Pre-operative expenses pending allocation included under Capital work in progress in Schedule 5 is
as under:
Particulars This Year Previous Year
(Rs. Crores) (Rs. Crores)
Raw materials consumed 0.06 -
Stores, spares and components 0.01 -
Repairs to Plant and machinery - 0.06
Salaries, wages, bonus, gratuity, commission etc. 1.72 3.11
Provident and other funds 0.07 0.17
Welfare 0.02 0.03
Rent - 0.02
Insurance 0.08 0.58
Freight and transport 0.08 2.36
Exchange fluctuation (4.53) 8.32
Miscellaneous expenses 2.84 3.39
Interest and finance charges 12.19 5.24
Depreciation - 0.01
12.54 23.29
Add: Brought forward from the previous year 21.80 44.61
Less: Capitalised during the year 30.08 46.10
Transferred to capital work-in-progress 4.26 21.80

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 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

10. Related party disclosures under Accounting Standard AS-18 “Related Party Disclosures” notified under Companies
(Accounting Standard) Rules, 2006:
A. Name of related party and nature of related party relationship
Subsidiaries: DCM Shriram Credit and Investments Limited, DCM Shriram International Limited, DCM Shriram
Infrastructure Limited, DCM Shriram Thermal Energy Limited (formerly Anant Thermal Energy Limited),
Hariyali India Limited*, DCM Shriram Aqua Foods Limited, Hariyali Rural Foundation (formerly Hariyali
Finance Foundation), DSCL Energy Services Company Limited, Hariyali Rural Ventures Limited, Hariyali
Insurance Broking Limited*, DCM Shriram Energy and Infrastructure Ltd., DCM Shriram Hydro Energy
Limited*, SBM Yarn Limited*, Fenesta Building Systems Limited*, Shri Ganpati Fertilizers Limited*, Shriram
Bioseed Genetics India Limited, Shriram Bioseed (Thailand) Limited, Bioseeds Limited, Bioseed Research
Philippines Inc., Bioseeds Holdings PTE. Limited*, Bioseed Vietnam Limited, Bioseed Research India Private
Limited, Shriram Bioseed Ventures Limited, Shriram Bioseeds Limited, Zeus Investments Limited, Affee
Investment Corp.**, Bioseed Genetics International Inc.**,
* subsidiary from current year,
**liquidated during the year.
Key Managerial Persons, their relatives and HUFs: Mr. Ajay S. Shriram, Mr. Vikram S. Shriram, Mr. Rajiv
Sinha, Mr. Ajit S. Shriram, Mr. N.J. Singh, Mr. Aditya A. Shriram (relative of Mr. Ajay S. Shriram), Mrs. Divya
Sinha (relative of Mr. Rajiv Sinha), Ms. Arunima Sinha (relative of Mr. Rajiv Sinha), M/s. Ajay S. Shriram
(HUF), M/s. Vikram S. Shriram (HUF).

B. Transactions with related parties referred to in note 10 A above.

Rs. Crores
TYPE OF TRANSACTIONS DCM Shriram DSCL Energy Shriram DCM Shriram DCM Shriram Shriram Hariyali Shri Ganpati DCM Shriram Hariyali Fenesta SBM Key Total
Credit and Services Bioseed Aqua Foods Infrastructure Bioseed Rural Fertilizers Energy and Rural Building Yarn Ltd managerial
Investments Company Genetics Ltd. Ltd. Ventures Ventures Ltd. Infrastructure Foundation Systems personnel,
Ltd. Ltd. India Ltd. Ltd. Ltd. Ltd. Ltd their relatives
and their HUF

Sale of finished and other goods 7.83 7.83

(-) (-)
Interest recovered 0.66 - 0.10 0.76
(0.91) (0.01) (0.89) (1.81)
Expenses recovered 2.03 3.30 - # 5.33
(2.38) (4.33) (0.31) (-) (7.02)
Purchases of finished goods 37.65 4.55 42.20
(22.21) (-) (22.21)
Rent paid ## 2.43 2.43
(-) (2.10) (2.10)
Security deposits given 33.31 - 33.31
(-) (1.00) (1.00)
Fixed deposit taken 0.02 0.02
(-) (-)
Security deposits received back 0.02 0.02
(0.07) (0.07)
Collection charges received 0.02 0.02
(-) (-)
Loans and advances given (net) - 0.05 1.94 0.01 0.21 0.02 2.23
(2.95) (-) (22.55) (34.56) (-) (-) (60.06)
Loans and advances received back (net) 1.61 2.03 - 3.64
(9.42) (-) (0.05) (9.47)
Consultancy paid 0.08 0.08
(0.70) (0.70)
Expenses paid - -
(0.03) (0.03)
Shares purchased - 0.15 0.05 0.05 0.25
(20.04) (-) (-) (-) (20.04)
Asset sold 0.01 0.01
(-) (-)
Assets purchased - -
(1.77) (1.77)
Balance outstanding as at the year end

Security deposits/receivable 33.31 8.75 42.06

(-) (8.77) (8.77)
Fixed deposits 0.09 0.09
(0.07) (0.07)
Loans and advances 6.25 0.01 6.98 0.09 24.54 34.57 17.01 0.21 0.04 89.70
(7.33) (-) (12.04) (0.03) (22.60) (34.56) (-) (-) (-) (76.56)
Commission Payable 2.07 2.07
(-) (-)
Amount Payable - * -
(0.05) (-) (0.05)

Figures in bracket denotes previous year figures

# Rs. 34,211
## Rs. 44,452
* Rs. 10,241
Note: Details of remuneration to whole time directors are given in note 13 below.

DSCL ANNUAL REPORT ‘08-’09 57

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

11. Employee Benefits

The Company has classified the various benefits provided to employees as under:-
i) Defined contribution plans :
The Company has recognized the following amounts in the profit and loss account:
(Rs. crores)
This Year Previous Year
- Employers’ contribution to provident fund 10.22 8.51
- Employers’ contribution to superannuation fund 6.19 7.06
- Employers’ contribution to employees’ state insurance corporation 0.26 0.21
ii) Defined benefit plans
a) Gratuity
b) Compensated absences – Earned leave/sick leave
In accordance with Accounting Standard 15 (revised 2005), actuarial valuation was done in respect of the
aforesaid defined benefit plans and details of the same are given below :-
(Rs. Crores)
Compensated absences
Gratuity Earned leave Sick leave
(Unfunded) (Unfunded) (Unfunded)
This Previous This Previous This Previous
Year year Year year Year year
Discount rate (per annum) 8% 8% 8% 8% 8% 8%
Future salary increase 7% 7% 7% 7% 7% 7%
In service mortality * * * * * *
Retirement age 58/60 58/60 58/60 58/60 58/60 58/60
Years years Years years Years years
Withdrawal rates:
- upto 30 years 3% 3% 3% 3% 3% 3%
- upto 44 years 2% 2% 2% 2% 2% 2%
- above 44 years 1% 1% 1% 1% 1% 1%
I. Expense recognised in profit and loss account
Current service cost 2.99 2.57 2.12 2.90 0.99 0.86
Interest cost 3.40 2.93 1.30 1.00 0.96 0.79
Net actuarial(gain)/loss recognised in the year 2.08 2.51 0.80 0.15 (0.65) (0.45)
Total expense 8.47 8.01 4.22 4.05 1.30 1.20
II. Net asset/(liability) recognised in the balance sheet
Present value of Defined benefit obligation 46.70 40.54 17.57 14.83 12.33 11.03
Funded status [(deficit)] (46.70) (40.54) (17.57) (14.83) (12.33) (11.03)
Net asset/(liability) (46.70) (40.54) (17.57) (14.83) (12.33) (11.03)
III. Change in the present value of obligation
during the year
Present value of obligation as at the beginning
of the year 40.54 36.60 14.83 12.54 11.03 9.83
Interest cost 3.40 2.93 1.30 1.00 0.96 0.79
Current service cost 2.99 2.57 2.12 2.90 0.99 0.86
Benefits paid (2.31) (4.07) (1.48) (1.76) — —
Actuarial (gains)/losses on obligation 2.08 2.51 0.80 0.15 (0.65) (0.45)
Present value of obligation as at the end of the year 46.70 40.54 17.57 14.83 12.33 11.03
* LIC (1994-96) duly modified

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 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

12. ‘Excise duty’ on sales has been deducted from gross sales on the face of profit and loss account. ‘Increase/
(decrease) in excise duty on finished goods’ has been shown under the head ‘Manufacturing and other expenses’
in schedule 10.
13. Managerial remuneration
Managerial remuneration of Rs. 6.93 crores (2007-2008 – Rs. 3.82 crores) includes commission payable to
managing directors Rs. 2.07 crores (2007-2008 – Rs. Nil) and non-working directors Rs. 0.42 crores (2007-
2008 – Rs. Nil).

This year Previous year

(Rs. Crores) (Rs. Crores)
Salaries and allowances 2.26 1.95
Contribution to provident and other funds 0.61 0.53
Perquisites 1.57 1.34
Commission 2.49 -
Total 6.93 3.82

Provision for incremental gratuity liability and leave encashment for the current year in respect of directors has
not been considered above, since the provision is based on an actuarial basis for the Company as a whole.
Computation of net profit in accordance with section 198 of the Companies Act, 1956 and commission
payable to directors.

This Year
(Rs. Crores)
Profit for the year before tax, per profit and loss account 76.02
Add: Managerial remuneration including commission 6.93
Directors’ sitting fees 0.09
83.04
Net profit in accordance with section 198 of the Companies Act, 1956 83.04
Maximum remuneration to managing directors @ 10% of the net profit 8.30
Restricted to 6.51
Maximum remuneration @ 1% of net profit to non-working directors 0.83
Restricted to 0.42
Previous year figure has not been given as in view of inadequacy of profits, remuneration was paid in accordance
with Central Government’s approval/Schedule XIII to the Act, as applicable.

DSCL ANNUAL REPORT ‘08-’09 59

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

14. Current Investments purchased and sold during the year are as follows:
Current Investments (Mutual fund units) purchased and sold during the year 2008-09:-
S. Face value Purchased Units* Sold units*
No. Name of the Fund Nos. Amount Nos.
(Rs.) (Crores) (Rs. Crores) (Crores)
1 UTI Money Market Mutual Fund - Daily Reinvest Option 10 47.74 72.31 47.74
2 UTI Liquid Cash Plan Institutional - Daily Income Option- Re-Investment 1000 0.01 10.00 0.01
3 JM High Liquidity Fund - Super Institutional Plan- Daily Dividend 10 1.00 10.00 1.00
4 Kotak Liquid (Institutional) - Weekly Dividend 10 26.05 318.49 26.05
5 DWS insta cash plus fund - regular plan daily dividend 10 3.07 31.62 3.07
6 DWS insta cash plus fund - institutional plan daily dividend 10 4.19 42.02 4.19
7 DWS insta cash plus fund - super institutional plan daily dividend 10 36.87 369.43 36.87
8 Birla Sunlife Liquid Plus - Institutional Daily Dividend - Reinvestment 10 2.70 26.96 2.70
9 Birla Sunlife Cash Plus - Institutional Premium Daily Dividend - Reinvestment 10 143.72 1,439.96 143.72
10 HDFC cash management fund savings plan- dividend daily reinvestment 10 4.93 52.47 4.93
11 HDFC Liquid Fund Premium Plan - Dividend Daily Reinvestment 10 33.68 412.94 33.68
12 Principal Cash Management Fund- Liquid Option Instl. Plan- Dividend Reinvestment Daily 10 4.14 41.41 4.14
13 Canara Robeco Liquid Super Instl. Daily Dividend Reinvestment 10 46.99 471.87 46.99
14 Reliance Money Manager Fund -Institutional Option - Daily Dividend Plan 1000 0.01 8.36 0.01
15 Reliance Liquid Fund-Treasury Plan - Institutional Option Daily Dividend Option' 10 9.49 145.04 9.49
16 Reliance Liquidity Fund-Daily Dividend Reinvestment Option 10 35.25 352.57 35.25
17 Bharti Axa Liquid Fund - Super Institutional Plan - Daily Dividend 1000 0.15 148.77 0.15
18 Tempelton India Treasury Management Account-Institutional Plan-Daily
Dividend Reinvestment 1000 0.02 16.40 0.02
19 Tempelton India Treasury Management Account-Super Institutional Plan-Daily
Dividend Reinvestment 1000 0.42 416.54 0.42
20 Tata Liquid Super High Investment Fund - Daily Dividend Reinvestment 1000 0.73 812.97 0.73
21 Tata Treasury Manager -Ship Daily Dividend 1000 0.01 15.00 0.01
22 JP morgan india liquid fund-super institutional daily dividend plan reinvestment 10 15.93 159.39 15.93
23 DSP Black Rock Cash Manager Fund -Institutional Plan Daily Dividend 1000 0.07 69.07 0.07
24 SBI Magnum Insta Cash Fund -Daily Dividend Plan 10 11.53 156.34 11.53
25 ICICI Prudential Institutional Liquid Plus -Super Institutional Daily Plan 10 133.78 1,337.88 133.78
26 Fidelity Cash Fund (Super Institutional) Daily Dividend 10 1.00 10.00 1.00
27 ING Liquid Fund Super Institutional- Dailty Dividend Option 10 9.06 90.62 9.06
28 Kotak Liquid (Institutional Premium) -Daily Dividend) 10 3.19 39.06 3.19
Total 575.73 7,077.49 575.73
* include dividend units
15. Amount of borrowing costs capitalised to fixed assets during the year Rs. 12.19 crores (2007-2008 - Rs. 5.24
crores)
16. There are no disputed dues of wealth tax, customs duty and cess matters. The details of disputed Excise duty,
Sales-tax and Income- tax dues as on March 31, 2009 are as follows:
Nature of the statute Nature of Forum where Amount* Amount paid Period to which the
the dues pending (Rs. Crores) under protest amount relates
(Rs. Crores)
Central Excise Law Excise duty Appellate authority up 2.14 - 1995-96, 2001-02, 2003-04,
to commissioners’ level 2005-06, 2006-07,2007-08
Central Excise and 0.15 0.06 1997-98, 2003-04
Service Tax
Appellate Tribunal
Sales Tax Laws Sales tax Appellate authority up 3.70 1.15 1983-84, 1994-95,
to commissioners’ level 1995-96 to 2000-01,
2005-06, 2006-07, 2007-08
Income Tax Act, 1961 Income tax Commissioner (Appeal) 31.86 31.86 2004-05, 2005-06
Income Tax 8.10 8.10 2002-03, 2003-04
Appellate Tribunal
*amount as per demand orders including interest and penalty whenever quantified in the Order
17. Provision for contingencies aggregating to Rs. 12.09 crores (2007-2008 - Rs. 12.09 crores) in Schedule 8
represents the maximum possible exposure on ultimate settlement of issues relating to reconstruction
arrangement of the companies.
DSCL ANNUAL REPORT ‘08-’09 60
 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

18. Research and development expenses included under relevant heads in the profit and loss account Rs. 2.13
crores (2007-2008 - Rs. 1.54 crores).
19. Category wise quantitative data about Derivative Instruments:
Nature of Number of deals Purpose Amount in foreign Amout in Rs. Crores
Derivative currency (in Crores)
This Previous This Previous This Previous This Previous
Year Year Year Year Year Year Year Year
US Dollar Interest 3 5 Hedging Hedging USD 1.70 USD 3.1 86.16 124.00
rate swap
Overnight Index swap - 1 Hedging Hedging - - - 25.00
Currency swap 2 - Hedging - USD 1.00 - 50.68 -
Currency swap 3 - Hedging - JPY 251.25 - 128.17 -
Coupon swap 4 4 Conversion of Indian Rupee Conversion of USD 0.50 USD 0.5 25.34 20.00
denominated coupons into Indian Rupee
USD coupons denominated
coupons into
USD coupons
Options 1 1 Hedging Hedging JPY 58.75 USD 0.5 29.97 20.00

Foreign Currency exposures that are not hedged by derivative instruments or otherwise are as follows:
Particulars This year Previous Year
Amount in foreign Amount in Amount in foreign Amount in
currency (in Crores) Rs. Crores currency (in Crores) Rs. Crores
Loans - - USD 2.25 90.15
Current liabilities USD 0.07 3.42 USD 0.17 6.78
- - EURO 0.006 0.36
JPY 0.05 0.03 JPY 1.62 0.65
Current Assets USD 0.01 0.54 USD 0.08 3.39
GBP 0.00037 0.03 GBP 0.001 0.06
EURO 0.15 9.77 EURO 0.005 0.31
JPY 0.04 0.02 - -

20. The Company had accounted for cane purchases for sugar year 2007-08 at Rs. 110 per quintal, the rate at
which it has made payment to the cane growers as per the interim order of the Hon’ble Supreme Court,
against the price of Rs. 125 per quintal fixed by the Uttar Pradesh State Government. Necessary adjustments
will be made in accordance with the orders of the Hon’ble court in the matter.
21. Disclosure in respect of assets taken on lease under Accounting Standards AS-19 “leases” issued by the
Institute of Chartered accountants of India:
(i) General description of the lease :
The Company has entered into lease agreements for lease of offices, retails outlets etc., generally for a period of 5/15
years, which can be terminated, by serving notice period as per the terms of the agreements.
(ii) (Rs. Crores)
This Year Previous Year
Total of minimum lease payments 13.19 10.06
The total of minimum lease payments for a period :
- Not later than one year 7.97 4.40
- Later than one year and not later than five years 5.07 5.36
- Later than five years 0.15 0.30
(iii) Lease payment recognised in profit and loss account for the year 16.21 9.63
22. Previous year’s figures have been recast, wherever necessary.
23. Schedules 1 to 12 and the statement of additional information form an integral part of the financial statements.

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 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

Statement of Additional Information

1. Particulars of capacity and production

Capacity Production
Description Unit Licensed* Installed Unit
2008-09 2007-08 2008-09 2007-08 2008-09 2007-08
Ammonia M.T. per year 198000 198000 M.T. - -
Urea M.T. per year 330000 330000 M.T. 394533 379000
Calcium carbide M.T. per year 112000 112000 M.T. 21600** 16824**
PVC resins M.T. per year 70000 70000 M.T. 46897 67380
Caustic soda M.T. per year 274670 176250 M.T. 185805 167139
Chlorine M.T. per year 203986 116750 M.T. 130875 96491
Hydrochloric acid(100%) M.T. per year 73850 73250 M.T. 40030 50830
Compressed Hydrogen M.T. per year 1657 1565 M.T. 892 704
Stable Bleaching Powder M.T. per year 13200 13200 M.T. 9262 8530
Cement M.T. per year 400000 400000 M.T. 380185 368970
Yarn Spindles Nos. 14544 12856 M.T. 3345 2373
Sugar M.T. per day*** 33000 33000 M.T. 149205 366692
UPVC Windows Nos. per year 406098 258000 Nos. 138484 124156
PVC Compounds M.T. per year 29700 23400 M.T. 21788 18543
* Delicensed/Not applicable
** Production of Marketable Calcium carbide only
*** Crushing of sugarcane

2. Particulars of stocks and sales

Stocks
Description Unit Opening Closing Sales
2008-09 2007-08 2008-09 2007-08 2008-09 2007-08
Urea M.T. - 63 - - 394513 378913
Rs. Crores - 0.10 - - 795.38 703.17
PVC resins M.T. 100 76 100 100 35810 57123
Rs. Crores 0.41 0.31 0.47 0.41 219.22 318.18
Caustic soda M.T. 485 854 1513 485 180547 166249
Rs. Crores 0.75 1.10 2.46 0.75 430.71 301.33
Chlorine M.T. 98 333 1376 98 116616 92768
Rs. Crores 0.02 0.03 0.02 0.02 26.43 51.27
Hydrochloric acid(100%) M.T. 134 114 100 134 15293 8889
* Rs. Crores 0.07 0.04 .... 0.07 1.73 2.56
Sodium Hypochlorite(10%) M.T. 14 34 2 14 11993 5781
* Rs. Crores .... .... .... .... 3.25 1.36
Compressed Hydrogen M.T. - - - - 892 704
Rs. Crores - - - - 11.25 9.20
Stable Bleaching Powder M.T. 14 26 107 14 9169 8542
Rs. Crores 0.01 0.02 0.06 0.01 8.54 8.65
Marketable Calcium carbide M.T. - - - - 21600 16824
Rs. Crores - - - - 87.65 52.90
D.A.P. M.T. 4825 3621 3668 4825 32025 25006
Rs. Crores 4.32 3.13 3.43 4.32 28.70 22.60
M.O.P. M.T. 485 2049 3683 485 7105 4975
Rs. Crores 0.21 1.44 1.60 0.21 2.94 2.70
Super Phosphate M.T. 2913 3957 4486 2913 252960 134742
Rs. Crores 0.97 1.53 1.51 0.97 231.38 42.16
Zinc Sulphate M.T. 290 507 440 290 5325 4087
Rs. Crores 0.71 1.02 1.42 0.71 15.46 10.35
Traded Urea M.T. 10014 6995 6935 10014 55022 45147
Rs. Crores 4.73 3.38 3.27 4.73 24.92 21.63
P.O.P M.T. 34 24 - 34 30676 19481
* Rs. Crores .... .... .... .... 12.89 7.27

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 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

2. Particulars of stocks and sales (Continued)

Stocks
Description Unit Opening Closing Sales
2008-09 2007-08 2008-09 2007-08 2008-09 2007-08

Cement M.T. 3339 3238 2745 3339 380284 368473

Rs. Crores 0.81 0.78 0.66 0.81 144.05 139.55
Yarn M.T. 114 55 116 114 3343 2314
Rs. Crores 0.91 0.41 0.99 0.91 31.38 19.60
Sugar M.T. 330024 253766 172599 330024 306630 290434
Rs. Crores 488.17 358.35 361.86 488.17 546.57 403.78
Molasses M.T. 87622 86720 88339 87622 100837 209860
Rs. Crores 31.72 17.51 49.92 31.72 50.94 48.22
UPVC Windows Nos. 9958 11524 6375 9958 140625 123340
Rs. Crores 3.37 3.92 2.20 3.37 94.39 66.54
PVC Compounds M.T. 303 339 196 303 21859 18571
Rs. Crores 1.82 2.11 0.96 1.82 143.50 122.41
Power Sale Lac/Kwh - - - - 2342.05 1319.69
Rs. Crores - - - - 114.07 38.83
Other sales/stocks
and adjustments Rs. Crores 92.45 33.29 123.16 92.45 545.99 291.33
Total Rs. Crores 631.45 428.47 553.99 631.45 3571.34 2685.59
* Amount in Rs. Lacs for above products

Hydrochloric acid(100%) Rs. Lacs 7.08 4.19 0.36 7.08

Sodium Hypochlorite(10%) Rs. Lacs 0.15 0.42 0.03 0.15
P.O.P Rs. Lacs 0.57 0.38 - 0.57

3A. Particulars of raw materials consumed

2008-09 2007-08
Description Quantity Value Quantity Value
M.T. Rs. Crores M.T. Rs. Crores
Naphtha 132138 462.56 132276 429.42
Liquidated natural gas 47830376* 108.69 38148127* 70.58
Lime and lime stone 98234 29.45 127842 31.63
Hard coke/SLV/Pearl/Nut coke/Met coke/Pet coke 25963 25.27 39887 32.24
Charcoal 45431 41.01 65014 51.40
Salt 293892 35.26 268802 27.33
Electrode paste 1484 4.41 1909 3.80
Hydrated Lime 6784 2.23 6231 1.84
Gypsum 28017 3.22 24108 2.32
Lime stone 372805 10.36 380530 10.33
Kapas, cotton, synthetic yarn etc. 3876 22.98 2739 14.25
Sugarcane 1690851 260.50 3563751 444.11
PVC Resin 1332 5.30 206 0.78
Plasticizers 4482 28.59 4209 26.01
Other miscellaneous raw materials 57.08 37.55
Total 1096.91 1183.59

* In standard cubic metres

DSCL ANNUAL REPORT ‘08-’09 63

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

3B. Particulars of goods purchased for resale

2008-09 2007-08

Description Quantity Value Quantity Value

Unit Rs. Crores Rs. Crores
D.A.P. M.T. 30868 27.82 26751 24.38
M.O.P. M.T. 10303 4.33 3542 1.52
Zinc Sulphate M.T. 5974 17.20 4006 9.92
Super Phosphate M.T. 254533 222.37 133705 39.55
Traded Urea M.T. 51943 23.46 48166 22.97
P.O.P. M.T. 30642 6.15 19491 3.29
Others 518.21 299.84
Total 819.54 401.47

4. Other Additional Information

Description 2008-09 2007-08
Rs. Crores Rs. Crores
(a) Value of imports on CIF basis
Raw materials 114.55 21.14
Components and spare parts 27.94 18.99
Capital goods 31.90 62.47
Others 1.66 0.44
(b) Expenditure in foreign currency on cash basis
Travelling 1.46 1.39
Technical know how - 0.41
Royalty 1.76 2.05
Interest 20.41 19.15
Consultation fees 2.45 1.38
Others 4.81 1.13
(c) Earnings in foreign exchange on cash basis
Direct export of goods on FOB basis/as per contracts where
FOB value not readily ascertainable 2.27 0.08

2008-09 2007-08
Rs. Crores % Rs. Crores %
(d) Value of imported/indigenous
raw materials,spare parts,
components and stores consumed
(i) Raw materials
Imported 28.63 2.61 14.88 1.26
Indigenous 1068.28 97.39 1168.71 98.74
1096.91 100.00 1183.59 100.00
(ii) Spare parts, components and stores
Imported 14.23 10.46 13.34 9.44
Indigenous 121.77 89.54 128.03 90.56
136.00 100.00 141.37 100.00

DSCL ANNUAL REPORT ‘08-’09 64

 DCM SHRIRAM
Schedules to the Accounts (Continued) CONSOLIDATED LIMITED

NOTES :

1. The Licences acquired from undivided DCM Limited, pursuant to the Scheme of Arrangement, are pending
endorsement in the name of the Company.
2. Installed capacity is as certified by officials of the Company and relied upon by the auditors, being a technical
matter.
3. The figures of production, sales, opening/closing stocks of caustic soda consist of liquid and flakes, both.
4. The figures of production, sales, opening/closing stocks of chlorine consist of liquid chlorine and chlorine
gas, both.
5. The sales quantities are net of samples/shortages.
6. Where one class of goods is used in the manufacture of another, consumption of materials has been arrived
at after deducting internal transfers.
7. Production details in respect of a class of goods captively consumed have not been indicated.
8. Interest paid/payable to financial institutions/banks in India on foreign currency loans is not included under
item 4(b) above, as such payments have been/will be made in Indian Rupees to the financial institutions.

Signatures to Schedules 1 to 12 and Statement of Additional information.

VIKRAM S. SHRIRAM AJAY S. SHRIRAM

Vice Chairman & Managing Director Chairman & Sr. Managing Director

B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Company Secretary Dy. Managing Director N.J. SINGH
PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 65

 DCM SHRIRAM
Balance Sheet Abstract and Company’s General Business Profile CONSOLIDATED LIMITED

I. Registration Details
Registration No. - 3 4 9 2 3 State Code 5 5

Balance Sheet date 3 1 - 0 3 - 0 9

II. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Rights Issue
- N I L - - N I L -
Bonus Issue Private Placement
- N I L - - N I L -
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
3 3 3 7 1 5 0 7 3 3 3 7 1 5 0 7
Sources of Funds
Paid-up Capital Reserves and Surplus
3 3 3 3 6 7 1 1 9 8 2 5 1 4
Secured Loans Unsecured Loans
1 3 5 6 7 0 8 3 6 0 4 9 1 3 8
Deferred Tax Liabilities (net)
1 4 3 9 4 0 5
Application of Funds
Net Fixed Assets Investments
2 1 4 0 3 7 5 4 5 5 6 3 3 0
Net Current Assets Misc. Expenditure
1 1 4 1 1 4 2 3 - N I L -
Accumulated Losses
- N I L -
IV. Performance of Company (Amount in Rs. Thousands)
Turnover Total Expenditure
3 4 3 9 2 0 8 0 3 3 6 3 1 8 7 7
+ - Profit/Loss Before Tax +- Profit/Loss After Tax
+ 7 6 0 2 0 3 + 1 0 1 7 9 0 2
(Please tick Appropriate box + for Profit, - for Loss)
Earning Per Share in Rs. Dividend rate %
6 . 1 4 4 0
V. Generic Names of Three Principle Products/Services of Company (as per monetary terms)
Item Code No. (ITC Code) 3 1 0 2 1 0 . 0 0
Product Description U R E A
Item Code No. (ITC Code) 1 7 0 1 1 1 . 9 0
Product Description S U G A R

Item Code No. (ITC Code) 2 8 1 5 1 2 . 0 0

Product Description C A U S T I C S O D A

VIKRAM S. SHRIRAM AJAY S. SHRIRAM

Vice Chairman & Managing Director Chairman & Sr. Managing Director
B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM
Company Secretary Dy. Managing Director N.J. SINGH
PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 66


Section 212
1. Name of the Subsidiary
2. Financial year of the
Subsidiary
3. Holding Company’s interest
as on 31.3.2009
4. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and not dealt with in the Holding Company's accounts:
i) For Subsidiary’s financial
year ended 31st March,
2009
ii) For Subsidiary’s previous
financial years since it
became Subsidiary.
5. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and dealt with in the Holding Company's accounts:
i) For Subsidiary’s financial
year ended 31st March,
2009.
ii) For Subsidiary’s previous
financial years since it
became Subsidiary.
1. Name of the Subsidiary
2. Financial year of the
Subsidiary
3. Holding Company’s interest
as on 31.3.2009
4. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and not dealt with in the Holding Company's accounts:
i) For Subsidiary’s financial
year ended 31st March,
2009
ii) For Subsidiary’s previous
financial years since it
became Subsidiary.
5. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and dealt with in the Holding Company's accounts:
i) For Subsidiary’s financial
year ended 31st March,
2009.
ii) For Subsidiary’s previous
financial years since it
became Subsidiary.
DSCL ANNUAL REPORT ‘08-’09
Statement Pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Companies
1 2
DCM SHRIRAM CREDIT AND
INVESTMENTS LIMITED
31st March, 2009
Holder(s) of 60,01,208 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of
60,01,208 shares.
Rs.0.0373 crore
(Rs.3.535 crores)
Nil
Nil
6 7
DCM SHRIRAM THERMAL
ENERGY LIMITED
(formerly known as Anant
Thermal Energy Limited)
31st March, 2009
Holder(s) of 50,000 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of 50,000
shares by DCM Shriram Credit
and Investments Ltd., another
subsidiary of the Company.
(0.0021 crore)
(Rs. 0.0568 crore)
Nil
Nil
DCM SHRIRAM AQUA FOODS
LIMITED
31st March, 2009
Holder(s) of 83,51,207 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of
83,51,207 shares.
(Rs. 0.0517 crore)
(Rs.4.859 crores)
Nil
Nil
DCM SHRIRAM ENERGY AND
INFRASTRUCTURE LIMITED
31st March, 2009
Holder(s) of 2,00,000 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of
2,00,000 shares.
(Rs.0.0275 crore)
(Rs.0.0069 crore)
Nil
Nil
3 4
DCM SHRIRAM
INTERNATIONAL LIMITED
31st March, 2009
Holder(s) of 50,007 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of 50,007
shares by DCM Shriram Credit
and Investments Ltd., another
subsidiary of the Company.
(0.0016 crore)
(Rs.0.0224 crore)
Nil
Nil
8 9
DCM SHRIRAM HYDRO
ENERGY LIMITED
31st March, 2009
Holder(s) of 50,000 shares of
Rs. 10/- each out of total
issued and subscribed Equity
Share Capital of 50,000 shares
by DCM Shriram Energy and
Infrastructure Limited, another
subsidiary of the Company.
(Rs. 0.1251 crore)
N.A.
Nil
N.A.
DCM SHRIRAM
CONSOLIDATED LIMITED
DSCL ENERGY SERVICES
COMPANY LIMITED
31st March, 2009
Holder(s) of 17,33,207 Equity
Shares of Rs.10/- each in its
name and Holding of 48,993
Equity Shares of Rs.10/- each
by DCM Shriram Credit and
Investments Ltd., another
subsidiary of the Company out
of total issued and subscribed
Equity Share Capital of
17,82,200 shares.
Rs.1.0592 crores
Rs.1.071 crores
Nil
Nil
HARIYALI RURAL VENTURES
LIMITED
31st March, 2009
Holder(s) of 50,000 shares of
Rs. 10/- each out of total
issued and subscribed Equity
Share Capital of 50,000 shares.
(Rs.0.2552 crore)
(Rs.0.0007 crore)
Nil
Nil
5
DCM SHRIRAM
INFRASTRUCTURE LIMITED
31st March, 2009
Holder(s) of 50,007 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of 50,007
shares by DCM Shriram Credit
and Investments Ltd., another
subsidiary of the Company.
(Rs0.0721 crore)
(Rs.0.1521 crore)
Nil
Nil
10
HARIYALI RURAL
FOUNDATION
(formerly known as Hariyali
Finance Foundation)
31st March, 2009
Holder(s) of 10,000 Equity
Shares of Rs.10/- each out of
total issued and subscribed
Equity Share Capital of 10,000
shares by DCM Shriram Credit
and Investments Ltd., another
subsidiary of the Company.
(Rs.0.0016 crore)
(Rs.0.0015 crore)
Nil
Nil
67
 DCM SHRIRAM
Section 212 CONSOLIDATED LIMITED

Statement Pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Companies

11 12 13 14 15

1. Name of the Subsidiary HARIYALI INDIA LIMITED HARIYALI INSURANCE SHRIRAM BIOSEED BIOSEEDS LTD. SHRIRAM BIOSEEDS LIMITED
(formerly known as Hariyali BROKING LIMITED (THAILAND) LIMITED
Rural Services Limited)

2. Financial year of the 31st March, 2009 31st March, 2009 31st March, 2009 31st March, 2009 31st March, 2009
Subsidiary

3. Holding Company’s interest
as on 31.3.2009
Holder(s) of 50,000 shares of
Rs. 10/- each out of total
issued and subscribed Equity
Share Capital of 50,000 shares
by DCM Shriram Credit &
Investments Limited, another
subsidiary of the Company.
Holder(s) of 50,000 shares of
Rs. 10/- each out of total
issued and subscribed Equity
Share Capital of 50,000 shares
by Hariyali Rural Ventures
Limited, another subsidiary of
the Company.
Holder(s) of 9,99,993 shares of
100 Thai Baht each (includes
9,60,000 shares of paid-up
amount of 25 Thai Baht each)
out of total issued and
subscribed Equity Share Capital
of 10,00,000 shares of 100
Thai Bhat each by Shriram
Bioseed Genetics India Ltd,
another subsidiary of the
Company.
Holder(s) of 11,74,551
Ordinary Shares of USD 1
each in its name and
11,28,490 Equity Shares of
USD 1 each by Shriram
Bioseeds Limited, another
subsidiary of the Company, out
of total issued Ordinary Share
Capital of 23,03,041 Equity
Shares.
Holder(s) of 2,50,000 Equity
Shares of USD 1 each out of
total issued and subscribed
Equity Share Capital of
2,50,000 Equity shares by
Shriram Bioseed Ventures
Limited, another subsidiary of
the Company.

4. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and not dealt with in the Holding Company's accounts:

i) For Subsidiary’s financial (Rs.0.0054 crore) (Rs.0.0216 crore) 0.5168 crore Rs.0.2383 crore (Rs. 0.9229 crore)
year ended 31st March,
2009

ii) For Subsidiary’s previous N.A. N.A. (Rs.0.173 crore) Rs.0.4528 crore (0.0021 crore)
financial years since it
became Subsidiary.

5. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and dealt with in the Holding Company's accounts:

i) For Subsidiary’s financial Nil Nil Nil Nil Nil

year ended 31st March,
2009.

ii) For Subsidiary’s previous N.A. N.A. Nil Nil Nil

financial years since it
became Subsidiary.

16 17 18 19 20

1. Name of the Subsidiary ZEUS INVESTMENTS LIMITED BIOSEEDS HOLDINGS PTE. BIOSEED RESEARCH BIOSEED VIETNAM LIMITED SHRI GANPATI FERTILIZERS
LIMITED PHILIPPINES INC. LIMITED

2. Financial year of the 31st March, 2009 31st March, 2009 31st March, 2009 31st March, 2009 31st March, 2009
Subsidiary

3. Holding Company’s interest
as on 31.3.2009
6,47,870 equity shares of
USD 1 each held by Shriram
Bioseeds Limited, another
subsidiary of the Company.
4365 ordinary shares of USD 1
each and 200 ordinary shares
of Singapore Dollar 1 each out
of total issued and subscribed
share capital.
Holder(s) of 3,58,523 Shares of
PHP 100 each out of total
Share Capital of 3,58,523
Shares of PHP 100 each by
Bioseeds Ltd., another
subsidiary of the Company.
Holder(s) of 1,31,25,080
thousand VND stock out of
1,31,25,080 thousand VND
stock by Bioseeds Ltd., another
subsidiary of the Company.
Holders of 17,50,280 equity
shares of Rs.10/- each out of
total issued and subscribed
equity share capital of
21,50,000 Shares.

4. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and not dealt with in the Holding Company's accounts:

i) For Subsidiary’s financial Rs.0.0325 crore (0.0113 crore) (Rs.0.1538 crore) Rs.9.334 crores (Rs. 2.35 crores)
year ended 31st March,
2009

ii) For Subsidiary’s previous N.A. N.A. Rs.2.4298 crores Rs.10.463 crores N.A.
financial years since it
became Subsidiary.

5. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and dealt with in the Holding Company's accounts:

i) For Subsidiary’s financial Nil Nil Nil Nil N.A.

year ended 31st March,
2009.

ii) For Subsidiary’s previous Nil Nil Nil Nil N.A.

financial years since it
became Subsidiary.

DSCL ANNUAL REPORT ‘08-’09 68

 DCM SHRIRAM
CONSOLIDATED LIMITED

Statement Pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Companies

21 22 23 24 25

1. Name of the Subsidiary SHRIRAM BIOSEED GENETICS BIOSEED RESEARCH INDIA SHRIRAM BIOSEED VENTURES SBM YARN LIMITED FENESTA INDIA LIMITED
INDIA LIMITED PRIVATE LIMITED LIMITED (formerly known as Fenesta
Building Systems Limited)

2. Financial year of the 31st March, 2009 31st March, 2009 31st March, 2009 31st March, 2009 31st March, 2009
Subsidiary

3. Holding Company’s interest
as on 31.3.2009
Holder(s) of 29,19,058 Equity
Shares of Rs.10/- each in its
name, and 25,84,624 shares
of Rs. 10/- each by Zeus
Investments Limited, 2,19,968
shares of Rs. 10/- each by
Shriram Bioseeds Ltd., other
subsidiaries of the Company
out of total issued and
subscribed Equity Share Capital
of 57,23,657 shares.
Holder(s) of 37,424 Equity
Shares of Rs.100/- each out of
total issued and subscribed
Equity Share Capital of 37,424
shares by Bioseeds Ltd.,
another subsidiary of the
Company.
Holder(s) of 40,50,000 Equity
Shares of Rs. 10/- each out of
total issued and subscribed
Equity Share Capital of
40,50,000 Shares.
Holders of 50,000 equity
shares of Rs.10/- each out of
total issued and subscribed
equity share capital of 50,000
equity shares.
Holders of 50,000 equity
shares of Rs.10/- each out of
total issued and subscribed
equity share capital of 50,000
equity shares.

4. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and not dealt with in the Holding Company's accounts:

i) For Subsidiary’s financial Rs.5.703 crores Rs. 5.509 crores (Rs.0.013 crore) (Rs. 0.0034 crore) (Rs.0.0034 crore)
year ended 31st March,
2009

ii) For Subsidiary’s previous Rs.2.237 crores (Rs.2.1375 crores) (Rs.0.089 crore) N.A. N.A.
financial years since it
became Subsidiary.

5. Net aggregate amount of the Subsidiary's profits/(losses) so far as it concerns the members of Holding Company and dealt with in the Holding Company's accounts:

i) For Subsidiary’s financial Nil Nil Nil Nil Nil

year ended 31st March,
2009.

ii) For Subsidiary’s previous Nil Nil Nil N.A. N.A.

financial years since it
became Subsidiary.

VIKRAM S. SHRIRAM AJAY S. SHRIRAM

Vice Chairman & Managing Director Chairman & Sr. Managing Director

B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Company Secretary Dy. Managing Director N.J. SINGH
PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 69

 DCM SHRIRAM
Subsidiary Companies’ Particulars CONSOLIDATED LIMITED

Particulars regarding subsidiary companies persuant to letter no 47/322/2009 - CL- III dated June 30, 2009 from Ministry of Corporate Affairs.
Year Ended March 31, 2009
Rs. Crores
Name of the Subsidiary Company Capital Reserves Total Total Turnover Profit Provision Profit Proposed
Assets Liabilities Before for After Dividend
Taxation Taxation Taxation
DCM Shriram Credit and Investments Limited 6.00 0.72 12.97 12.97 0.71 0.03 (0.01) 0.04 -
DSCL Energy Services Company Limited 1.78 2.02 3.80 3.80 5.65 1.69 0.63 1.06 -
DCM Shriram International Limited 0.05 - 0.05 0.05 - - - - -
DCM Shriram Infrastructure Limited 0.05 - 24.59 24.59 - (0.07) - (0.07) -
DCM Shriram Thermal Energy Limited) 0.05 - 0.06 0.06 - - - - -
(Formerly Anant Thermal Energy Limited)
Shriram Bioseed Genetics India Limited 5.72 12.80 41.04 41.04 110.54 7.96 2.26 5.70 -
Shriram Bioseed (Thailand ) Limited 3.35 - 4.60 4.60 3.40 0.77 0.26 0.52 -
Bioseeds Limited 11.21 1.15 12.85 12.85 0.31 0.25 0.01 0.24 -
Bioseed Vietnam Limited 5.06 27.66 5.26 5.26 36.58 10.07 0.73 9.34 -
Bioseed Research Philippines, Inc. 5.16 0.46 7.79 7.79 25.47 0.12 0.27 (0.15) -
Bioseed Research India Private Limited 0.37 - 3.40 3.40 15.71 5.68 0.17 5.51 -
DCM Shriram Aqua Foods Limited 8.35 - 8.44 8.44 - (0.05) - (0.05) -
DCM Shriram Energy and Infrastructure Limited 0.20 - 0.41 0.41 - (0.03) - (0.03) -
Shriram Bioseed Ventures Limited 4.05 16.00 54.62 54.62 - (0.01) - (0.01) -
Shriram Bioseeds Limited 1.54 65.47 67.41 67.41 - (0.92) - (0.92) -
Hariyali Rural Foundation 0.01 - 0.01 0.01 0.02 - - - -
(Formerly Hariyali Finance Foundation)
Hariyali Rural Ventures Limited 0.05 - 33.43 33.43 - (0.26) - (0.26) -
Zeus Investments Limited 2.59 - 3.28 3.28 0.08 0.03 - 0.03 -
Shri Ganpati Fertilizers Ltd 2.15 5.11 14.22 14.22 4.56 (2.34) 0.01 (2.35) -
Fenesta Building Systems Limited 0.05 - 0.05 0.05 - - - - -
SBM Yarn Limited 0.05 - 0.05 0.05 - - - - -
DCM Shriram Hydro Energy Limited 0.05 - 0.25 0.25 - (0.13) - (0.13) -
Hariyali India Limited 0.05 - 0.05 0.05 - (0.01) - (0.01) -
Hariyali Insurance Broking Limited 0.05 - 0.05 0.05 - (0.02) - (0.02) -
Bioseeds Holdings PTE. Limited 0.02 - 0.02 0.02 - (0.01) - (0.01) -
Exchange Rate as at 31.3.2009
1 USD = INR 50.68
Details of Investments(other than in subsidiaries) are as follows:
DCM Shriram Credit and Investments Limited Rs. Crores
763.959 US-2002 of Unit Trust of India of Rs. 10/- each fully paid up( # Rs.5,000) #
National Saving Certificate (## Rs.9,000) ##
5,400 Master Gains 92 of Unit Trust of India of Rs. 10/- each fully paid up (### Rs.47,000) ###
1,50,000 equity shares of IFCI Ltd. of Rs.10/- each fully paid up 0.06
2,500 equity shares of APW President System Ltd. of Rs. 10/- each fully paid up 0.01
66,037 equity shares of Bank of Baroda of Rs. 10/- each fully paid up 1.52
45,108 equity shares fo Gujrat State Petronet Ltd of Rs. 10/- each fully paid up 0.12
34,150 equity shares of National Thermal Power Corporation Ltd. of Rs. 10/- each fully paid up 0.21
3,430 equity shares of Punjab National Bank of Rs.10/- each fully paid up 0.13
37,870 equity shares fo Yes Bank Ltd of Rs. 10/- each fully paid up 0.17
6,934 equity shares of IL & FS Investsmart Ltd. of Rs. 10/- each fully paid up 0.09
1708 equity shares of Future Capital Holdings Ltd. of Rs.10/- each fully paid up 0.13
97,907 equity shares of Power Grid Corporation of India Ltd of Rs. 10/- each fully paid up 0.51
8,708 equity shares of Reliance Power of Rs.10/- each fully paid-up 0.24
49,950 equity shares of Pacific Land Development Pvt. Ltd. of Rs. 10/- each fully paid up 0.05
3,00,000 equity shares of E Commodities Ltd. of Rs. 10/-each fully paid up 0.30
2,00,000 equity shares of Ellenbarie Commercial Ltd. of Rs. 10/-each fully paid up 1.50
40,000 equity shares of BMD Estates Pvt. Ltd of Rs. 10/-each fully paid up -
5,00,000 equity shares of Forech India Ltd of Rs. 10/-each, Rs. 4 paid up 1.75
DSCL Energy Services Company Limited
Investment in mutal funds
Reliance Mutual Fund - 4044.826 units in Money Manager Retail daily dividend 0.41
DWS Ultra Mutual Fund - 2,00,695.013 units in Short term - Daily Dividend 0.20
Kotak Mutual Fund - 1,70,476.460 units in Flexi Debt - Daily Dividend 0.17
Other Subsidiaries Nil
The Company will make available the annual accounts and related detailed information of the subsidiary companies upon request to the
shareholders of the holding and the subsidiary companies. These shall also be kept for inspection at the head office of the Company and the
subsidiary companies.

DSCL ANNUAL REPORT ‘08-’09 70


Consolidated Financial Statements
Auditors’ Report
Report of the Auditors to the Board of Directors of DCM Shriram Consolidated Limited on the Consolidated Financial
Statements of DCM Shriram Consolidated Limited and its Subsidiaries.
We have examined the attached consolidated balance sheet
of DCM Shriram Consolidated Limited and its subsidiaries,
as at March 31, 2009, the consolidated profit and loss
account and also the cash flow statement for the year ended
on that date annexed thereto. These financial statements
are the responsibility of the management of DCM Shriram
Consolidated Limited. Our responsibility is to express an
opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with generally
accepted auditing standards in India. These standards
require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements
are prepared, in all material respects, in accordance with
an identified financial reporting framework and are free
of material misstatements. An audit includes, examining
on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statements. We believe
that our audit provides a reasonable basis for our opinion.
2. We did not audit the financial statements of subsidiaries
viz., DCM Shriram Credit and Investments Limited, DSCL
Energy Services Company Limited, DCM Shriram
International Limited, DCM Shriram Infrastructure Limited,
DCM Shriram Thermal Energy Limited (Formerly known
as Anant Thermal Energy Limited), Hariyali Rural
Foundation (Formerly known as Hariyali Finance
Foundation), DCM Shriram Energy and Infrastructure
Limited, Hariyali Rural Ventures Limited, DCM Shriram
Aqua Foods Limited, Bioseeds Limited, Bioseed Vietnam
Limited, Bioseed Holding PTE Limited, Bioseed Research
Phillipines Inc., Bioseed Research India Private Limited,
Shriram Bioseed Genetics India Limited, Shriram Bioseed
(Thailand) Limited, Shriram Bioseed Ventures Limited,
Shriram Bioseed Limited, Zeus Investments Limited, DCM
Shriram Hydro Energy Limited, Fenesta Building Systems
Limited, SBM Yam Limited, Hariyali India Limited, Hariyali
Insurance Broking Limited and Shri Ganpati Fertilizers
Limited whose financial statements reflect total assets
of Rs. 150.46 crores as at March 31, 2009, total
revenues of Rs. 118.86 crores and cash flows amounting
to Rs. 9.45 crores for the year ended on that date as
considered in Consolidated Financial Statement. These
financial statements have been audited by other auditors
whose reports have been furnished to us, and our opinion,
insofar as it relates to the amounts included in respect
DSCL ANNUAL REPORT ‘08-’09
DCM SHRIRAM
CONSOLIDATED LIMITED
of these subsidiaries, is based solely on the report of the
other auditors.
3. We report that the consolidated financial statements have
been prepared by the Company in accordance with
the requirements of Accounting Standard 21,
Consolidated Financial Statements, notified by the
Companies (Accounting Standard) Rules, 2006 and on
the basis of the separate audited financial statements of
DCM Shriram Consolidated Limited and its subsidiaries
included in the consolidated financial statements.
4. Without qualifying our opinion, we draw attention to
note 17 of schedule 13 relating to accounting for cane
purchase liability for the sugar season 2007-08 at
Rs. 110 per quintal instead of State Advised Price of
Rs. 125 per quintal fixed by the Uttar Pradesh
State Government. Pending completion of legal
proceedings in the matter, the effect thereof on these
accounts can not be determined at this stage.
5. In our opinion and on the basis of the information and
explanations given to us and on the consideration of the
separate audit reports on individual audited financial
statements of DCM Shriram Consolidated Limited and
its subsidiaries, we are of the opinion that:
(a) the consolidated balance sheet gives a true and fair
view of the consolidated state of affairs of DCM
Shriram Consolidated Limited and its subsidiaries as
at March 31, 2009;
(b) the consolidated profit and loss account gives a true
and fair view of the consolidated results of operations
of DCM Shriram Consolidated Limited and its
subsidiaries for the year ended on that date; and
(c) the consolidated cash flow statement gives a true
and fair view of the cash flows of DCM Shriram
Consolidated Limited and its subsidiaries for the year
ended on that date.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Jaideep Bhargava
Partner
Membership No.: 90295
New Delhi
Date: June 3, 2009
71
 DCM SHRIRAM
Consolidated Balance Sheet CONSOLIDATED LIMITED
of DCM Shriram Consolidated Limited and its Subsidiary Companies as at March 31, 2009
As at As at
Schedule March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Sources of Funds
Shareholders’ funds
Share capital 1 33.34 33.34
Reserves and surplus 2 1235.19 1115.93
1268.53 1149.27
Loan funds 3
Secured 1375.96 1256.41
Unsecured 611.18 527.03
1987.14 1783.44
Deferred tax liabilities (net) 4 143.91 171.24
Total 3399.58 3103.95
Application of Funds
Fixed assets 5
Gross block 3001.55 2390.76
Less : Depreciation 774.94 634.14
Net block 2226.61 1756.62
Capital work in progress 62.23 299.98
2288.84 2056.60
Investments 6 13.44 12.04
Current assets, loans and advances 7
Inventories 807.60 808.69
Sundry debtors 409.42 281.27
Cash and bank balances 53.66 57.72
Loans and advances 294.17 274.46
Other current assets 175.52 143.48
1740.37 1565.62
Less: Current liabilities and provisions 8
Current liabilities 533.34 438.80
Provisions 109.73 91.51
643.07 530.31
Net current assets 1097.30 1035.31
Total 3399.58 3103.95
Notes to the consolidated accounts 13

Per our report attached

For DELOITTE HASKINS & SELLS VIKRAM S. SHRIRAM AJAY S. SHRIRAM
Chartered Accountants Vice Chairman & Managing Director Chairman & Sr. Managing Director

Jaideep Bhargava B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Partner Company Secretary Dy. Managing Director N.J. SINGH
Membership No.: 90295 PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 72

 DCM SHRIRAM
Consolidated Profit and Loss Account CONSOLIDATED LIMITED
of DCM Shriram Consolidated Limited and its Subsidiary Companies for the year ended March 31, 2009
Year ended Year ended
Schedule March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Income
Gross Sales 3681.35 2770.08
Less : Excise duty 180.56 196.15
Net Sales 3500.79 2573.93
Income from services and other income 9 57.28 39.42
Total income 3558.07 2613.35
Expenditure
Manufacturing and other expenses 10 2380.08 2015.57
Purchases for resale 777.70 379.81
Interest - On debentures and other fixed loan 122.46 75.64
- Others 27.97 11.97
Depreciation 11 148.73 123.65
Total Expenditure 3456.94 2606.64
Profit before tax and exceptional item 101.13 6.71
Exceptional item
- Profit on sale of SBM Land Redevelopment project - 779.64
Profit before tax 101.13 786.35
Provision for taxation 12 (21.48) 113.64
Profit after tax 122.61 672.71
Transfer from debenture redemption reserve 1.51 5.17
Balance brought forward from the previous year 440.16 228.28
Profit available for appropriation 564.28 906.16
Appropriations
Proposed dividends (equity shares)
- Interim - 49.77
- Final 13.27 6.64
Corporate dividend tax 2.26 9.59
Statutory reserve 0.01 -
General reserve 50.00 400.00
Balance carried to consolidated balance sheet 498.74 440.16
Earnings per share - basic/diluted (Rs.)
(Refer note 8 in schedule 13)
- Before exceptional item 7.39 (0.08)
- After exceptional item 7.39 40.55
Notes to the consolidated accounts 13

Per our report attached to the consolidated balance sheet

For DELOITTE HASKINS & SELLS VIKRAM S. SHRIRAM AJAY S. SHRIRAM
Chartered Accountants Vice Chairman & Managing Director Chairman & Sr. Managing Director

Jaideep Bhargava B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Partner Company Secretary Dy. Managing Director N.J. SINGH
Membership No.: 90295 PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 73

 DCM SHRIRAM
Consolidated Cash Flow Statement CONSOLIDATED LIMITED
of DCM Shriram Consolidated Limited and its Subsidiary Companies for the year ended March 31, 2009
Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
A. Cash flow from operating activities
Net profit before tax and exceptional items 101.13 6.71
Adjustments for :
Depreciation 148.73 123.65
Loss on sale of fixed assets 1.21 0.09
Loss on sale of non trade long term investments - 0.07
Exchange differences on conversion 5.27 1.15
Finance Charges 1.88 3.05
Interest expense 150.43 87.61
Less: interest and dividend income (21.03) (7.22)
Operating profit before working capital changes 387.62 215.11
Adjustments for :
Trade and other receivables(net) (146.08) 55.10
Inventories 2.11 (224.64)
Trade and other payables 106.92 (422.71)
Cash generated from operations 350.57 (377.14)
Income taxes paid (22.24) (113.78)
Net cash from/(used) in operating activities 328.33 (490.92)
B. Cash flow from investing activities
Purchase of fixed assets (400.81) (379.56)
Sale of fixed assets 3.15 5.57
Purchase of non-trade current investments (7,080.17) (5,021.96)
Purchase of non-trade long term investments - (3.13)
Purchase of trade long term investments (1.55) -
Sale of non-trade current investments 7,079.39 5,021.96
Sale of non-trade Long term Investment 0.95 0.13
Refund of security deposit from Investment company - 0.12
Purchase of investment in subsidiary company - (53.33)
Interest received 18.05 3.48
Dividend received 2.27 1.77
Net cash used in investing activities before exceptional item (378.72) (424.95)
Exceptional item - 832.59
Net cash from/(used) in investing activities after exceptional item (378.72) 407.64
C. Cash flow from financing activities
Proceeds from borrowings 9,691.84 6,854.72
Repayment of borrowings (9,404.96) (6,585.95)
Inter Corporate Deposits received back 1.30 4.81
Finance Charges (1.88) (3.05)
Changes in working capital borrowings (83.08) (32.92)
Dividends paid (6.64) (56.41)
Corporate dividend tax paid (1.13) (9.59)
Interest received - 0.01
Interest paid (148.73) (86.48)
Net cash from financing activities 46.72 85.14
Net increase/(decrease) in cash and cash equivalents (3.67) 1.86
Cash and cash equivalents as at opening
Cash and cheques in hand and balances with banks 56.88 55.02
Cash and cash equivalents as at closing
Cash and cheques in hand and balances with banks 53.21 56.88

Per our report attached to the consolidated balance sheet

For DELOITTE HASKINS & SELLS VIKRAM S. SHRIRAM AJAY S. SHRIRAM
Chartered Accountants Vice Chairman & Managing Director Chairman & Sr. Managing Director

Jaideep Bhargava B.L. SACHDEVA RAJIV SINHA AJIT S. SHRIRAM

Partner Company Secretary Dy. Managing Director N.J. SINGH
Membership No.: 90295 PRADEEP DINODIA
VIMAL BHANDARI
D. SENGUPTA
New Delhi S.C. BHARGAVA
June 3, 2009 Directors

DSCL ANNUAL REPORT ‘08-’09 74

 DCM SHRIRAM
Consolidated Financial Statements CONSOLIDATED LIMITED

1. SHARE CAPITAL
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Authorised
24,99,50,000 (2007-2008 - 24,99,50,000) Equity shares 49.99 49.99
of Rs.2 each
65,01,000 (2007-2008 - 65,01,000) Cumulative
redeemable preference shares of Rs.100 each 65.01 65.01
115.00 115.00
Issued
16,98,03,320 (2007-2008 - 16,98,03,320) Equity shares
of Rs.2 each 33.96 33.96
Subscribed and paid up
16,59,03,320 (2007-2008 - 16,59,03,320) Equity shares
of Rs.2 each, fully called-up 33.18 33.18
Add: Forfeited shares - Amount originally paid up 0.16 33.34 0.16 33.34
33.34 33.34

NOTES:
Of the issued, subscribed and paid-up capital,
- 2,87,75,380 equity shares of Rs. 2 each represent the equity shares issued on October 9, 1990 to the members of undivided DCM Limited in the ratio
of one share for every four shares held by the members in undivided DCM Limited, in terms of the Scheme of Arrangement effective from April 1, 1990,
without payment being received in cash.
- 8,29,51,660 equity shares of Rs. 2 each fully paid up were allotted and issued as bonus shares by capitalisation of Capital Redemption Reserve

2. RESERVES AND SURPLUS

As at As at
March 31, 2008 Additions Deductions March 31, 2009
Rs. Crores Rs. Crores Rs. Crores Rs. Crores
Revaluation reserve 0.31 - 0.03 0.28
Debenture redemption reserve 1.51 - 1.51 # -
Share premium account 65.07 - - 65.07
Capital redemption reserve 8.41 - - 8.41
Capital reserve 22.61 - - 22.61
General reserve 577.79 50.00 - 627.79
Statutory reserve * 0.71 0.01 - 0.72
Foreign currency translation reserve (0.64) 12.21 - 11.57
Profit and loss account 440.16 58.58 - 498.74
1,115.93 120.80 1.54 1,235.19
# Transfer to profit and loss account on redemption
* As per The Reserve Bank of India (Amendment) Act 1997

3. LOAN FUNDS
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Secured
Debentures - 3.00
Loans from banks
On cash credit account 133.17 216.25
Others 751.82 818.44
Other loans 490.97 218.72
1,375.96 1,256.41
Unsecured
Deposits
Fixed 3.31 5.08
Others 31.16 29.99
Interest accrued and due on deposits 0.24 0.64
Short term loans and advances
Banks 572.40 488.18
Others 3.68 2.78
Finance Lease Liability* 0.39 0.36
611.18 527.03
1,987.14 1,783.44
* Represents present value of minimum lease payments. Also refer note 7 in schedule 13.

DSCL ANNUAL REPORT ‘08-’09 75

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

3. LOAN FUNDS (Continued)

Secured
1. Debentures
i) Debentures detailed below are secured by English first mortgage on the Company’s property at Taluka Kalol, District Gandhinagar,
Gujarat and first equitable mortgage/ charge on immovable/ movable properties, both present and future, of the Company’s
undertakings at Kota, Rajasthan, subject to charges created/to be created in favour of the Company’s bankers on stocks, stores
and book debts for securing borrowings for working capital, and shall rank pari-passu in all respects with the security created or
to be created in terms of the stipulations of the respective Trust Deeds:
a) Nil (2007-2008– 5,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in three
equal annual instalments commencing from November 1, 2006. The third & final instalment has been paid during the year (Rs.
Nil due within a year, 2007-08- Rs. 1.67 crores)
ii) Debentures detailed below are secured by English first mortgage on the Company’s property at Taluka Kalol, District Gandhinagar,
Gujarat and first equitable mortgage/ charge created on immovable/ movable properties both present and future, of the Company’s
undertaking at District Bharuch, Gujarat (save and except book debts) subject to charges created in favour of the Company’s
bankers on stocks, stores and book debts for securing borrowings for working capital and shall rank pari-passu with existing
charges created/ to be created in favour of other first chargeholders:
a) Nil (2007-2008–4,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in three equal
annual instalments commencing from November 1, 2006. The third & final instalment has been paid during the year (Rs. Nil
due within a year, 2007-2008 – Rs. 1.33 crores)
2. Short term working capital borrowings from Banks:
(a) Company
i) Loans from banks on cash credit account of Rs. 114.21 crores (2007-2008 – Rs. 194.05 crores) are secured by first charge on
whole of the current assets of the company, both present and future. These loans are further secured by a third charge by way
of mortgage/hypothecation of all the immovable/movable properties (other than current assets) of the Company’s undertakings
at Kota in Rajasthan and Ajbapur, Rupapur, Loni & Hariawan in Uttar Pradesh.
ii) Short Term Loan of Rs. 43.49 crores (2007-2008- Rs. 85.27 crores) from a bank is secured by 50,000 6.65% Fertiliser
Companies GOI Special Bonds 2023 (2007-2008- 90,000 7.95% Fertiliser Companies GOI Special Bonds 2026), by way of Repo
transactions.
(b) Shriram Bioseed Genetics India Limited (SBGI), a subsidiary
Short term loans and advances from banks of SBGI of Rs. 18.96 crores (2007-2008 – Rs. 22.20 crores) are secured by hypothecation
of stocks and other receivables and book debts both present and future and mortgage and charge in favour of banks of all immovable
properties both present and future including movable machinery, machinery spares, tools and accessories both present and future.
3. Other loans:
(a) Company
(i) Term loans of Rs. 142.08 crores (2007-2008– Rs. 154.13 crores) from banks are secured by way of first pari passu mortgage/
charge created on immovable/movable fixed assets, both present and future, term loan of Rs. 12.00 crores (2007-2008 –
Rs. 12.00 crores) from others is secured by way of first pari passu mortgage on immovable properties and first charge by way of
hypothecation of all movables (save and except book debts), both present and future, subject to prior charges created in favour
of the Company’s bankers on the current assets for securing working capital borrowings, a term loan of Rs. Nil (2007-2008–
Rs. 20.00 crores) from a bank was secured by way of second mortgage/ charge created on immovable and movable fixed assets,
both present and future and term loan of Rs. 126.71 crores (2007-2008 Rs. Nil) from others is secured by way of first pari passu
mortgage/charge created/to be created on immovable and movable assets (excluding current assets), both present and future and
a second charge ranking pari passu on the current assets, both present and future of the Company’s undertakings at Jhagadia,
Distt Bharuch, Gujarat (Rs. 7.95 crores due within a year; 2007-2008– Rs. 30.80 crores)
(ii) Term loans of Rs. 125.85 crores (2007-2008– Rs. 128.47 crores) from banks are secured by way of first pari passu mortgage/
charge created on immovable/movable fixed asset both present and future, term loan of Rs. 18.00 crores (2007-2008–
Rs. 18.00 crores) from others is secured by way of first pari passu mortgage on immovable properties and first charge by way of
hypothecation of all movables (save and except book debts), both present and future, subject to prior charges created in favour
of the Company’s bankers on the current assets for securing working capital borrowings, term loans of Rs. Nil (2007-2008
Rs.50.00 crores) from banks were secured by way of second mortgage/ charge created on immovable/movable fixed assets,
both present and future and term loans of Rs. 258.48 crores (2007-2008 Rs. 120.03 crores) from others are secured by way of
first pari passu mortgage/charge created/to be created on immovable and movable assets (excluding current assets), both
present and future and a second charge ranking pari passu on the current assets, both present and future of the Company’s
undertakings at Kota, Rajasthan (Rs. 41.39 crores due within a year; 2007-2008– Rs. 87.87 crores).
(iii) Term loan of Rs. 1.32 crores (2007-2008– Rs. 3.32 crores) from a bank is secured by way of first mortgage, ranking pari passu,
on immovable/movable fixed assets, both present and future, pertaining to the Company’s Ajbapur Sugar Complex and Rupapur
Sugar Complex, Uttar Pradesh, (Rs. 1.32 crores due within a year; 2007-2008– Rs. 2.00 crores).
(iv) Term loan of Rs. 33.33 crores (2007-2008– Rs. 41.67 crores) from a bank is secured by way of first pari passu mortgage/charge
created on immovable/movable fixed assets, both present and future, term loans of Rs. 94.37 crores (2007-08: Rs. 74.23 crores)
from banks are secured by way of first pari passu mortgage/charge created on immovable/movable assets, both present and
future, subject to any prior charges created in favour of the Company’s bankers on the current assets for securing working capital
borrowings and term loans of Rs. 42.29 crores (2007-2008 Rs. 42.29 crores) from others are secured by way of a exclusive
second charge on movable assets (save and except book debts) both present and future, pertaining to the Company’s Ajbapur
Sugar Complex, Uttar Pradesh (Rs. 31.47 crores due within a year; 2007-2008– Rs. 8.33 crores)
(v) Term loan of Rs. 101.36 crores (2007-2008– Rs. 80.00 crores) from a bank is secured by way of first mortgage/charge created
on immovable/movable assets, both present and future, subject to prior charges created in favour of Company’s bankers on
current assets for securing working capital borrowings, term loan of Rs. 7.50 crores (2007-2008– Rs. 7.50 crores) from a bank
is secured by way of first pari passu mortgage/charge created on immovable/movable fixed assets, both present and future,
pertaining to the Company’s Loni Sugar Complex, Uttar Pradesh. (Rs. 0.18 Crores due within a year; 2007-2008– Rs. Nil)

DSCL ANNUAL REPORT ‘08-’09 76

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

3. LOAN FUNDS (Continued)

(vi) Term loan of Rs. 94.37 crores (2007-2008– Rs. 74.23 crores) from a bank is secured by way of first pari passu mortgage/charge
created on immovable/movable assets, both present and future, subject to any prior charges created in favour of the Company’s
bankers on the current assets for securing working capital borrowings, term loan of Rs. 7.50 crores (2007-08: Rs. 7.50 crores)
from a bank is secured by way of first pari passu mortgage/charge created on immovable/movable fixed assets both present and
future and term loan of Rs. 33.45 crores (2007-2008– Rs. 26.40 crores ) from others is secured by way of first pari passu
mortgage/charge created on immovable/movable assets (excluding current assets) both present and future, and a second charge
ranking pari passu on the current assets, both present and future of the Company’s Hariawan Sugar Complex, Uttar Pradesh.
(Rs. 25.61 crores due within a year; 2007-2008– Rs. Nil)
(vii)Term loan of Rs. 30.25 crores (2007-2008– Rs. 35.69 crores) from a bank is secured by way of first mortgage/charge created
on immovable/movable fixed assets, both present and future pertaining to the Company’s Rupapur Sugar Complex, Uttar Pradesh.
(Rs. 15.12 crores due within a year; 2007-2008– Rs. 11.90 crores)
(viii)Term loan of Rs. 56.43 crores (2007-2008: Rs. 56.43 crores) from a bank is secured by way of residual mortgage/charge created
on immovable/movable fixed assets, both present and future pertaining to all the four sugar units of the Company, i.e. Ajbapur
Sugar Complex, Uttar Pradesh, Rupapur Sugar Complex, Uttar Pradesh, Hariawan Sugar Complex, Uttar Pradesh & Loni Sugar
Complex, Uttar Pradesh. (Rs. 4.70 crores due within a year; 2007-2008– Rs. Nil)
(ix) Term Loan of Rs. 13.72 crores (2007-2008: Nil) from a bank secured by way of equitable mortgage of Land/Building, both
present and future, of SBM unit of the Company at Tonk, Rajasthan. (Rs. Nil due within a year; 2007-2008– Rs. Nil)
(b) Shri Ganpati Fertilizers Limited, a subsidiary
(i) Rs. 0.25 crores (2007-2008 – Nil) from a bank and Rs. 0.04 crores (2007-2008 – Nil) from others are secured by hypothecation
of assets purchased.
4. DEFERRED TAX LIABILITIES AND ASSETS
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Deferred tax liabilities
Depreciation 235.35 212.05
235.35 212.05
Deferred tax assets
Provision for gratuity and leave encashment 26.61 22.92
Provision for doubtful debts and advances 3.55 3.19
Unabsorbed business loss 0.01 0.30
Others 61.27 14.40
91.44 40.81
Deferred tax liabilities (net) 143.91 171.24

5. FIXED ASSETS
GROSS BLOCK DEPRECIATION NET BLOCK

Description As at Additions of Additions Deductions As at Up to Additions of For Deductions/ Up to As at As at

March 31, subsidiaries March 31, March 31, subsidiaries the year Adjustment March 31, March 31, March 31,
2008 acquired 2009 2008 acquired 2009 2009 2008
Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores
Tangibles
Land 108.19 0.02 30.03 - 138.24 * - - - - - 138.24 108.19
Buildings 293.95 2.63 136.65 0.87 432.36 ** 25.69 0.64 9.09 0.33 35.09 397.27 268.26
Plant and machinery 1,824.76 3.63 390.63 8.31 2,210.71 $ 546.14 1.37 121.84 5.80 663.55 $ 1,547.16 1,278.62
Furniture and fittings 46.68 0.08 39.11 1.47 84.40 22.47 0.04 9.32 0.89 30.94 53.46 24.21
Vehicles 25.45 0.28 8.57 4.46 29.84 12.48 0.05 4.09 3.11 13.51 16.33 12.97
Intangibles
Goodwill 54.22 - 11.13 - 65.35 9.15 - - - 9.15 56.20 45.07
Technical Know How 23.79 - - - 23.79 12.46 - 2.39 - 14.85 8.94 11.33
Brand 8.22 - - - 8.22 3.75 - 0.69 - 4.44 3.78 4.47
Software 4.67 - 2.89 - 7.56 1.52 - 1.19 - 2.71 4.85 3.15
Assets on lease
Vehicles 0.83 - 0.25 - 1.08 $$ 0.48 - 0.18 (0.04) 0.70 0.38 0.35
This year 2,390.76 6.64 619.26 ** 15.11 3,001.55 634.14 2.10 148.79 # 10.09 774.94 2,226.61
Previous year 2,187.16 - 213.09 9.49 2,390.76 514.68 - 123.69 4.23 634.14 1,756.62
Capital work in progress 62.23 299.98
(including capital advances)
2,288.84 2,056.60

* - Includes Rs.2.30 crores (2007-2008 - Rs. 1.90 crores) pertaining to land situated at Hardoi and Hyderabad pending registration in favour of the Company
- Land amounting to Nil (Rs.0.11 crore) is yet to be mutuated in the name of Bioseed Research India Private Limited
** Includes addition of Rs.3.89 crores (2007-2008 - Rs 0.05 crore) on account of foreign exchange fluctuation.
$ Includes Rs. 0.16 crore (2007-2008 Rs. 0.16 crore) in respect of certain plant and machinery retired from active use and held for disposal.
$$ Refer note 7 in schedule 13
# - Includes Rs. 0.03 crore (2007-2008 - Rs. 0.01 crore) included in additions to fixed assets/capital work in progress

DSCL ANNUAL REPORT ‘08-’09 77

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

6. INVESTMENTS
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Long Term
(valued at cost unless there is permanent fall in value thereof)
Trade Investments
Unquoted
7,95,009 (2007-08 - 7,95,009) Equity shares of Rs. 10/- each
fully paid up of Bharuch Eco Aqua Infrastructure Limited. 0.79 0.79
45,50,000 (2007-08 - 30,00,000) Equity Shares of Rs. 10/- each
shares of Forum I Aviation Private Limited. 15,50,000 equity shares
alloted during the year 4.55 3.00
Quoted
763.959 (2007-08 - 763.959) US-2002 of Unit Trust of India
of Rs. 10/- each fully paid up (# Rs. 0.05 lacs) # #
Non-Trade Investments
Government Securities
Unquoted
National savings certificates * 0.03 0.01
Investment in Shares, Units, etc.
Quoted
Nil (2007-08 - 95,495 ) 6.75 % Bonds of Rs.100/- each fully paid-up
of Unit Trust of India, 95,495 units redeemed during the year - 0.95
1,50,000 (2007-08 - 150,000 ) Equity shares of IFCI Limited of
Rs.10/- each fully paid up 0.06 0.06
5,400 (2007-08 - 5,400) Master Gains 92 of Unit Trust of India
of Rs. 10/- each fully paid up (@ Rs. 0.47 lacs) @ @
2,500 (2007-08 - 2,500) Equity shares of APW President System
Limited of Rs.10/- each fully paid up 0.01 0.01
66,037 (2007-08 - 66,037 ) Equity shares of Bank of Baroda of
Rs. 10/- each fully paid up. 1.52 1.52
8,708 (2007-2008 - 5,443) Equity shares of Reliance Power Limited of
Rs. 10/- each fully paid up, 3,265 bonus shares allotted during the year 0.24 0.24
45,128 (2007-08 - 45,128) Equity shares of Gujarat State Petronet
Limited of Rs. 10/- each fully paid up 0.12 0.12
1,708 (2007-2008 - 1,708 ) Equity shares of Future Capital Holdings
Ltd. Rs. 10/- each fully paid up 0.13 0.13
34,150 (2007-08 - 34,150) Equity shares of National Thermal Power
Corporation Limited of Rs.10/- each fully paid up 0.21 0.21
3,430 (2007-08 - 3,430) Equity shares of Punjab National Bank
of Rs.10/- each fully paid up 0.13 0.13

DSCL ANNUAL REPORT ‘08-’09 78

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

6. INVESTMENTS (Continued)
As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores

97,907 (2007-2008 - 97,907) Equity shares of Power Grid Corporation

Ltd of Rs. 10/- each fully paid up 0.51 0.51
37,870 (2007-08 - 37,870) Equity shares of Yes Bank Ltd of Rs. 10/-
each fully paid up. 0.17 0.17
6,934 (2007-08 - 6,934) Equity shares of IL & FS Investsmart Limited
of Rs. 10/- each fully paid up. 0.09 0.09
Unquoted
500 (2007-08 -500) 5.5% bonds of Rs. 10,000/- each fully paid up of
Rural Electrification Corporation Limited 0.50 0.50
49,950 (2007-08 - 49,950) Equity shares of Pacific Land Development
Private Limited of Rs.10/- each fully paid up 0.05 0.05
5,00,000 (2007-08 - 5,00,000) Equity shares of Forech India Limited of
Rs. 10/- each, Rs 4 paid up 1.75 1.75
3,00,000 (2007-08 - 3,00,000) Equity shares of E Commodities Limited
of Rs.10/- each fully paid up 0.30 0.30
2,00,000 (2007-08 - 2,00,000) Equity shares of Ellenbarie Commercial
Limited of Rs.10/- each fully paid up 1.50 1.50
40,000 (2007-08 - 40,000) Equity shares of BMD Estate Private Limited
of Rs.10/- each fully paid up 0.75 0.75
Less : Permanent diminution in value 0.75 - 0.75
Current Investments
(valued at lower of cost or net realisable value)
Non-Trade, Unquoted
Reliance Mutual Fund
4044.826 (2007-08 - Nil) units in Money manager 0.41 -
Retail- Daily dividend purchased during the year
DWS Ultra Mutual Fund
2,00,695.013 (2007-08 - Nil) units in Short term - Daily Dividend 0.20 -
purchased during the year
Kotak Mutual Fund
1,70,476.460 (2007-08- Nil) units in Flexi Debt - Daily Dividend 0.17 -
purchased during the year
TOTAL: 13.44 12.04
Aggregate book value - Quoted 3.19 4.14
- Unquoted 10.25 7.90
Aggregate market value - Quoted 4.07 6.63
* Lodged with Sales Tax authorities Rs. 9,000 (2007-08 - Rs. 9,000)

DSCL ANNUAL REPORT ‘08-’09 79

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

7. CURRENT ASSETS, LOANS AND ADVANCES

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Current Assets
Inventories
Stores and spares * 88.43 72.99
Stock-in-trade **
Raw materials 106.13 70.99
Process stocks 17.18 11.74
Finished goods 595.85 652.96
Securities 0.01 0.01
807.60 808.69
Sundry debtors
Debts over six months
Secured - considered good 0.11 0.04
Unsecured - considered good 94.43 44.66
- considered doubtful 9.13 9.87
Other debts
Secured - considered good 18.51 3.85
Unsecured - considered good 296.37 232.72
418.55 291.14
Less: Provision for doubtful debts 9.13 9.87
409.42 281.27
Cash and bank balances
Cash on hand 1.15 3.95
Cheques in hand 2.13 6.30
With scheduled banks on
Current account 31.68 42.90
Deposit account # 18.70 4.57
53.66 57.72
Loans and Advances
Advances recoverable in cash or in
kind or for value to be received
Unsecured - considered good 157.46 138.15
- considered doubtful 1.43 0.81
Less: Provision for doubtful advances 1.43 0.81
157.46 138.15
Deposits 22.08 23.85
With customs, excise and port trust authorities 53.95 67.30
Tax payments (net of provision for current tax and
fringe benefit tax)@ 49.10 42.51
MAT Credit entitlement 8.54 0.32
Interest accrued on investments and deposits 3.04 2.33
294.17 274.46
Other current assets (trade)**
(Refer Note 10 of Schedule - 13)
16,400 (2007-2008 - 30,000) 8.3% Fertiliser companies GOI
special bond 2023 of Rs. 10,000 each fully paid-up,
13600 (2007-08 - 10000) sold during the year 16.40 30.00
62,400 (2007-2008 - 1,23,000) 7.95% Fertiliser companies GOI
special bond 2026 of Rs.10,000 each fully paid-up
60600 (2007-08 - Nil) sold during the year 62.40 123.00
56,000 (2007-2008 - Nil) 7% Fertiliser companies GOI
special bond 2022 of Rs.10,000 each fully paid-up issued during the year 56.00 -
50,470 (2007-2008 - Nil) 6.65% Fertiliser companies GOI
special bond 2023 of Rs.10,000 each fully paid-up issued during the year ## 50.47 -
185.27 153.00
Less: Provision for diminution in value of bonds (9.75) (9.52)
175.52 143.48
1740.37 1565.62
* Stores and spares are valued at cost or under.
** Stock-in-trade and other current assets is valued at cost or net realisable value, whichever is lower.
# - Includes Rs. 0.29 crore (2007-2008 Rs. 0.43 crore) provided as margin for bank guarantees and letter of credit
- Includes Rs. 0.10 lac (2007-2008 - Rs. 0.10 lac) lodged with sales tax authority.
- Rs. 0.16 crore (2007-2008 - 0.31 crore) pledged as security against bank guarantee
@ Rs. 0.32 crore (2007-2008 Rs. 11.76 crores) MAT credit adjusted during the year
## Refer Note 2(a)(ii) of Schedule 3

DSCL ANNUAL REPORT ‘08-’09 80

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

8. CURRENT LIABILITIES AND PROVISIONS

As at As at
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Current Liabilities
Sundry creditors#
Total outstanding dues of Micro and small enterprises 0.99 0.17
Total outstanding dues of creditors other than micro
and small enterprises 518.85 427.05
Ex-gratia payable under voluntary retirement schemes* 1.21 1.39
Interest accrued but not due on loans 12.29 10.19
533.34 438.80
Provisions
Gratuity 47.02 40.83
Compensated absences 31.09 26.82
Proposed dividends 13.27 6.64
Corporate dividend tax 2.26 1.13
Provision for Contingencies 16.09 16.09
109.73 91.51
643.07 530.31
# Sundry creditors do not include any amounts outstanding as on March 31, 2009 which are required to be credited to
Investor Education and Protection Fund.
* Rs. 0.18 crore (2007-2008 - Rs.0.18 crore) due within a year.

9. INCOME FROM SERVICES AND OTHER INCOME

Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Income from services* 5.43 4.67
Other income
Dividend income (gross) from:
- non trade, long term investments 0.09 0.06
- non trade, current investments 2.18 1.71
Profit on sale of Fertiliser bonds 0.06 -
Profit on sale of fixed assets - 0.05
Interest income** 18.76 5.45
Rent 4.42 3.07
Liabilities/provisions no longer required written back 2.39 2.30
Miscellaneous 23.95 22.11
57.28 39.42
* Income-tax deducted at source Rs.0.38 crore (2007-2008 Rs. 0.34 crore)
** Income-tax deducted at source Rs. 0.69 crore (2007-2008 Rs. 0.85 crore)

DSCL ANNUAL REPORT ‘08-’09 81

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

10. MANUFACTURING AND OTHER EXPENSES

Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Raw materials consumed 1,170.43 1,220.63
Stores, spares and components 146.21 148.36
Power, fuel, etc. 446.15 359.02
Repairs
Buildings 4.16 3.82
Plant and machinery 19.09 26.26
Salaries, wages, bonus, gratuity, commission, etc. 229.21 182.19
Provident and other funds 17.60 16.62
Welfare 11.74 9.94
Rent 19.11 11.83
Insurance 8.19 6.87
Donation 0.28 2.90
Rates and taxes 1.79 2.20
Auditors’ remuneration
Audit fee 0.67 0.58
Tax audit 0.09 0.03
Other services 0.56 0.45
Out-of-pocket expenses 0.01 0.04
Directors’ fees 0.09 0.07
Bad debts and advances written-off 1.25 0.42
Provision for doubtful debts and advances 2.97 1.28
Freight and transport 64.11 54.15
Commission to selling agents 3.21 1.85
Brokerage, discounts (other than trade discounts), etc. 2.37 13.91
Selling expenses 42.96 23.42
Exchange fluctuation 33.34 12.94
Loss on sale of fertiliser bonds - 0.15
Loss on sale of non trade - long term investment - 0.07
Loss on sale/write off of fixed assets 1.22 0.14
Increase/(decrease) in excise duty of finished goods (14.71) 10.57
Provision for diminution in value of fertiliser bonds 7.21 9.52
Provision for losses on derivative transactions - 2.42
Miscellaneous expenses 109.73 91.71
2,329.04 2,214.36
Less: - Cost of own manufactured goods capitalised (1.00) (0.84)
2,328.04 2,213.52
(Increase)/ Decrease in stocks of finished goods
and process stocks
Closing stocks 613.04 664.71
Less : Opening stocks 664.71 466.76
Add: Stocks of Subsidiaries on acquisition thereof 0.37 -
52.04 (197.95)
2,380.08 2,015.57

11. DEPRECIATION
Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Depreciation 148.76 123.68
Less: Transfer from revaluation reserve 0.03 0.03
148.73 123.65

DSCL ANNUAL REPORT ‘08-’09 82

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

12. CURRENT/DEFERRED TAX

Year ended Year ended
March 31, 2009 March 31, 2008
Rs. Crores Rs. Crores
Current tax 12.57 103.98
Less :- MAT credit entitlement (8.54) 4.03 (0.19) 103.79
Deferred tax (3.10) 7.10
Fringe Benefit Tax 3.98 2.75
Adjustments related to earlier year
current tax (2.16) -
deferred tax (24.23) (26.39) - -
(21.48) 113.64

DSCL ANNUAL REPORT ‘08-’09 83

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS

1. Statement of accounting policies
(i) Basis of accounting
The consolidated financial statements are prepared under the historical cost convention as modified to include the revaluation
of land of one of the subsidiary of the Company. These statements have been prepared in accordance with Accounting
Standard 21 – “Consolidated Financial Statements”.
(ii) Principles of consolidation
a) The consolidated financial statements relate to DCM Shriram Consolidated Limited (‘the Company’) and its subsidiary
companies. The consolidated financial statements have been prepared on the following basis:
- the financial statements of the Company and its subsidiary companies have been combined on a line-by-line basis by
adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-
group balances and intra-group transactions resulting in unrealised profits or losses.
- the consolidated financial statements have been prepared using uniform accounting policies for like transactions and
other events in similar circumstances and are presented in the same manner as the Company’s separate financial
statements.
- the excess of cost to the Company of its investment in a subsidiary company over the Company’s portion of the
equity of the subsidiary at the date on which investment in subsidiary is made is recognised in the financial statements
as goodwill.
b) The companies considered in the consolidated financial statements are:

Name of the Company Country of % voting % voting

incorporation power held as at power held as at
March 31, 2009 March 31, 2008
Subsidiary companies
DCM Shriram Credit and Investments Limited (DSCIL) India 100 100
DSCL Energy Services Company Limited (DESL) India 100 100
DCM Shriram International Limited (DSIL)(100% India 100 100
subsidiary of DSCIL)
DCM Shriram Infrastructure Limited (DCMSIL) India 100 100
(100 % subsidiary of DSCIL)
DCM Shriram Thermal Energy Limited (Formerly India 100 100
known as Anant Thermal Energy Limited(ATEL)
(100 % subsidiary of DSCIL)
Hariyali Rural Foundation (Formerly known as Hariyali
Finance Foundation) (100% subsidiary of DSCIL) India 100 100
DCM Shriram Energy and Infrastructure Limited (DSEIL) India 100 100
Hariyali Rural Ventures Limited (HRVL) India 100 100
DCM Shriram Aqua Foods Limited (DSAFL) India 100 100
Bioseeds Limited (BL) Mauritius 100 100
Bioseed Vietnam Limited (BVL)(100% subsidiary of BL) Vietnam 100 100
Bioseed Holdings PTE Limited #(100% subsidiary of BL) Singapore 100 -
Bioseed Research Philippines Inc (BRP) (100% Philippines 100 100
subsidiary of BL)
Bioseed Research India Private Limited (BRI) India 100 100
(100% subsidiary of BL)
Shriram Bioseed Genetics India Limited (SBGI) India 100 100
Shriram Bioseed (Thailand) Limited (SBTL) Thailand 99.99 99.99
(99.99% subsidiary of SBGI)
Shriram Bioseed Ventures Limited (SBVL) India 100 100
Shriram Bioseeds Limited (SBL) (100% subsidiary of SBVL) Mauritius 100 100
Affee Investment Corp (Affee) *(100% subsidiary of SBL) British Virgin Island - 100
Bioseed Genetics International Inc. *(100% Panama - 100
subsidiary of Affee)
Zeus Investments Limited (100% subsidiary of SBL) Mauritius 100 100
DCM Shriram Hydro Energy Limited # (100% India 100 -
subsidiary of DSEIL)
Fenesta Building Systems Limited # India 100 -
SBM Yarn Limited # India 100 -
Hariyali India Limited #(100% subsidiary of DSCIL) India 100 -
Hariyali Insurance Broking Limited #(100% subsidiary of HRVL) India 100 -
Shri Ganpati Fertilizers Limited # India 81.41 -
# subsidiary from current year.
* liquidated during the year
c) These Consolidated Financial Statements are based, in so far as they relate to amounts included in respect of subsidiaries
on the audited financial statements prepared for consolidation by the concerned subsidiaries in accordance with the
requirements of AS –21 “Consolidated Financial Statements” notified by the Companies ( Accounting Standard ) Rules,
2006.

DSCL ANNUAL REPORT ‘08-’09 84

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

(iii) Fixed assets and depreciation
a) Owned assets
Fixed assets (assets acquired in Shriram Bioseed Genetics India Limited which have been revalued and are stated at revalued
figure) are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes
and incidental expenses and interest on loans attributable to the acquisition of assets up to the date of commissioning of assets.
Capital subsidy received against specific asset is reduced from the value of relevant fixed asset.
The Company is following the straight-line method of depreciation in respect of buildings, plant and machinery and written
down value method in respect of other assets.
Depreciation is provided at the rates as specified in schedule XIV to the Companies Act, 1956, except in the case of:
Depreciation Rate
- catalyst tubes 12.50%
- cell units 10.00%
- certain other plant and machinery items 16.67%
- office and other equipments 25.00%
Depreciation is calculated on a pro-rata basis from the date of additions, except in the case of assets costing upto Rs.5000
each, where each such asset is fully depreciated in the year of purchase.
Depreciation (amortisation) on intangibles is provided on straight line method as follows:
- Technical know-how is amortised over its estimated economic useful life of 10 years
- Brand is amortised over a period of 10 years.
- Software is amortised over a period of 5 years.
On assets sold, discarded, etc. during the year, depreciation is provided upto the date of sale/discard.
b. Assets taken on finance lease
Fixed assets taken on finance lease on or after April 1, 2001 are stated at the lower of the fair value of the lease assets or the
present value of the minimum lease payments at the inception of the lease.
In respect of fixed assets taken on finance lease, when there is reasonable certainty that the Company will obtain ownership by
the end of the lease term, depreciation is provided in accordance with the policy followed by the Company for owned assets.
(iv) Foreign currency transactions and derivatives
(a) Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing at the time of transaction.
Monetary items (i.e. receivables, payables, loans etc.) denominated in foreign currency are reported using the closing exchange
rate on each balance sheet date.
The exchange differences arising on the settlement of monetary items or on reporting these items at rates different from rates
at which these were initially recorded/reported in previous financial statements are recognized as income/expense in the
period in which they arise except that the exchange differences arising till the commissioning of fixed assets, relating to
borrowed funds and liabilities in foreign currency for acquisition of the fixed assets are adjusted to the cost of fixed assets.
In case of forward exchange contracts, the premium or discount arising at the inception of such contracts, is amortised as
income or expense over the life of the contract. Further exchange difference on such contracts i.e. difference between the
exchange rate at the reporting/settlement date and the exchange rate on the date of inception of contract/the last reporting
date, is recognized as income/ expense for the period except that the exchange differences, including premium or discount on
forward exchange contracts, arising till the commissioning of fixed assets, relating to borrowed funds and liabilities in foreign
currency for acquisition of the fixed assets are adjusted to the cost of fixed assets.
(b) In case of foreign subsidiaries, the assets and liabilities have been translated into Indian Rupees at the closing exchange rate
at the year end whereas revenues and expenses reflected in the profit and loss account have been translated into Indian
Rupees at monthly average exchange rate for the reporting period. The resultant translation exchange differences are accumulated
in “Foreign currency translation reserve” to be recognised as income or expense in the period in which net investment in
concerned foreign subsidiary is disposed off.
(v) Inventories
Stores and spares are valued at cost or under. Stock-in-trade is valued at Cost or net realisable value, whichever is lower. The bases
of determining cost (which also includes taxes and duties wherever applicable) for different categories of inventory are as follows: -
Stores, spares and raw materials - Weighted average rate.
Stock-in-trade
Process stocks and finished goods - Direct cost plus appropriate share of overheads after giving credit for
other income and excluding certain expenses like ex-gratia and gratuity.
By-Products - At estimated realisable value
Securities are valued at cost or net realisable value, whichever is lower.
(vi) Revenue recognition
a) Revenue in respect of sale of products is recognised at the point of despatch to customer.
b) Under the retention pricing scheme, the Government of India reimburses to the fertiliser industry, the difference between the
retention price based on the cost of production and selling price (as realised from the farmers) as fixed by the Government
from time to time, in the form of subsidy. The effect of variation in input costs/expenses on retention price yet to be notified
is accounted for by the Company as income for the year based on its assessment of ultimate collection with reasonable degree
of certainty at the time of accrual.
c) The Company accrues concession/subsidy on traded Phosphatic and Potassic fertilisers pending notification by Government
of India, based on its assessment of ultimate collection thereof with reasonable degree of certainity.
d) Revenue in respect of income from services is recognized on proportionate completion method.
(vii) Investments
Long term investments are stated at cost unless there is a permanent fall in value thereof. Current investments are stated at cost
or net realisable value, whichever is less.
DSCL ANNUAL REPORT ‘08-’09 85
 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

(viii) Employee benefits
Company’s contributions paid/payable during the year to provident fund, superannuation fund and employees’ state insurance
corporation are recognised in the profit and loss account. For the Provident Fund Trust administered by the Company, the Company
is liable to meet the shortfall, if any, in payment of interest at the rates declared by the Central Government and such liability is
recognised in the year of shortfall.
Provisions for gratuity and compensated absences determined on an actuarial basis at the end of the year are charged to revenue
each year.
(ix) Research and development
The revenue expenditure on research and development is charged as an expense in the year in which it is incurred. Capital
expenditure is included in fixed assets.
(x) Agricultural cost
Agricultural costs of Shriram Bioseed Genetics India Limited are accounted for as per the on going contracts.
(xi) Income-tax
The Income-tax liability is provided in accordance with the provisions of the Income-tax Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence, on timing differences, between taxable income and accounting
income. Deferred tax assets on unabsorbed depreciation and carry forward losses are recognised on virtual certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realised.

This Year Previous Year

(Rs. Crores) (Rs. Crores)

2. (i) Contingent liabilities not provided for:

Claims* (excluding claims by employees where amount
not ascertainable) not acknowledged as debts:
Income tax matters 0.40 -
Sales tax matters 1.33 1.33
Excise Matters 2.22 2.30
Additional Premium on Land 8.11 8.11
Others 7.20 7.40
Total 19.26 19.14

* 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 management, have a material effect on results of operations or
financial position of the Company.
(ii) Capital commitments (net of advances) 11.70 94.04
(iii) Guarantees given to financial institutions, banks and other parties in
respect of loans availed by other parties:
Amount guaranteed 1.85 1.85
Amount of loans outstanding 0.46 0.52
3. In accordance with past practice, the Company has taken revenue credits aggregating Rs. 46.81 crores (2007-2008 -
Rs. 14.21 crores) for urea subsidy claims , which are pending notification/ final acceptance by ‘Fertiliser Industry Coordination
Committee’ (FICC), Government of India, in pursuance of the Retention Price Scheme administered for nitrogenous fertilisers.
Similarly, revenue credits aggregating Rs. 17.38 crores (2007-08- Rs. 0.27 crores) for subsidy claims relating to Di-Ammonium
Phosphate, Muriate of Potash and Single Super Phosphate have been taken which are pending notification of final rates of concession/
subsidy by the Government of India, Ministry of Chemicals and Fertilisers. Necessary adjustment to revenue credits so accrued will
be made on issuance of notification by FICC/Government of India, Ministry of Chemicals and Fertilisers or final settlement thereof.
4. The Hon’ble Supreme Court vide its Order dated December 11, 1996 directed that the Aqua projects shall be allowed to be
developed after the projects are granted approval by an ‘Authority’ to be constituted by the Central Government, which is still
pending. DCM Shriram Aqua Foods Limited (DSAFL) is monitoring the developments in this regard and will take appropriate actions
in due course.
However, DSAFL, in the year 2001-2002, based on a valuation of its assets carried out by an independent valuer had out of
abundant caution made a provision for contingencies of Rs. 4.00 crores towards the possible diminution in the value of its assets.
5. Sundry debtors of Shriram Bioseed Genetics India Limited (SBGI) include Rs. 1.16 crores (2007-08 Rs. 1.16 crores) in respect of a
debtor against whom legal action for recovery has been initiated. In the opinion of the management of SBGI, this outstanding is
considered fully recoverable and therefore, has not been provided for.
6. Segment reporting
A. Business segments :
Based on the guiding principles given in Accounting Standard AS-17 “Segment Reporting” notified by the Companies ( Accounting
Standard) Rules, 2006 the Company’s business segments include: Fertilisers (manufacturing of urea), Chloro-Vinyl (manufacturing
of poly-vinyl chloride, carbide and chlor alkali products), Agri inputs (trading of di ammonia phosphate, muriate of potash, super
phosphate, other fertilisers, seeds and pesticides),Cement (manufacturing of cement), Sugar (manufacturing of sugar products
and co-generation of Power), Hariyali Kisaan Bazaar (Rural retail and agri businesses), Bioseed (production of hybrid seeds),
Others (energy services, textiles, compounds, UPVC Window Systems and plaster of paris). Sale of power from the power
generation facilities set up for the business segments is included in their respective results.

DSCL ANNUAL REPORT ‘08-’09 86

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

B. Geographical segments:
Since the Company’s activities/operations are primarily within the country and considering the nature of products/services it
deals in, the risks and returns are same and as such there is only one geographical segment.
C. Segment accounting policies:
In addition to the significant accounting policies applicable to the business segments as set out in note 1 above, the accounting
policies in relation to segment accounting are as under:
a) Segment revenue and expenses:
Joint Revenue and joint expenses of segments are allocated amongst them on a reasonable basis. All other segment
revenue and expenses are directly attributable to the segments.
b) Segment assets and liabilities:
Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories
and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment
liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and
liabilities do not include deferred income taxes. While most of the assets/liabilities can be directly attributed to individual
segments, the carrying amounts of certain assets/liabilities pertaining to two or more segments are allocated to the segments
on a reasonable basis.
c) Inter segment sales:
Inter segment sales between operating segments are accounted for at market price. These transactions are eliminated in
consolidation.

D. Information about business segments:

Rs. Crores
PARTICULARS Fertiliser Agri Inputs Sugar Hariyali Kisaan Chioro-Vinyl# Cement Bioseed Others Elimination Total
Bazaar
This Previous This Previous This Previous This Previous This Previous This Previous This Previous This Previous This Previous This Previous
Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
1. REVENUE
External sales 795.44 703.17 369.63 134.31 642.89 502.22 406.97 217.98 876.53 749.65 146.44 139.55 155.48 106.16 287.97 217.04 3681.35 2770.08
Income from Services 5.43 4.67 5.43 4.67
Inter segment sales 0.06 8.22 1.98 - 0.27 4.57 3.09 54.78 46.18 - 0.04 0.07 0.56 67.64 52.18
Total revenue 795.44 703.23 377.85 136.29 642.89 502.49 411.54 221.07 931.31 795.83 146.44 139.59 155.48 106.16 293.47 222.27 67.64 52.18 3686.78 2774.75
2. RESULTS
Segment results 25.82 19.69 22.88 7.27 87.86 (4.99) (64.59) (29.64) 197.50 148.97 25.47 27.63 29.53 6.30 (3.33) (15.53) 321.14 159.70
Unallocated expenses (net of income) 69.58 65.38
Operating profit 25.82 19.69 22.88 7.27 87.86 (4.99) (64.59) (29.64) 197.50 148.97 25.47 27.63 29.53 6.30 (3.33) (15.53) 251.56 94.32
Interest expense 150.43 87.61
Profit before tax and exceptional items 101.13 6.71
Profit on sale of SBM land redevelopment project - 779.64
Profit before tax 101.13 786.35
Provision for taxation (21.48) 113.64
Net profit 122.61 672.71
3. OTHER INFORMATION
A. ASSETS
Segment assets 281.46 301.11 112.34 72.89 1276.54 1394.76 443.35 305.85 1009.25 908.81 35.49 36.09 174.94 109.23 387.47 262.59 3720.84 3391.33
Unallocated assets 321.81 242.93
Total assets 281.46 301.11 112.34 72.89 1276.54 1394.76 443.35 305.85 1009.25 908.81 35.49 36.09 174.94 109.23 387.47 262.59 4042.65 3634.26
B. LIABILITIES
Segment liabilities 77.69 94.94 68.02 28.11 69.52 140.32 39.81 25.38 196.23 128.84 13.84 10.30 81.13 35.45 34.75 26.08 580.99 489.42
Share capital and reserves 1268.53 1149.27
Secured and unsecured loans 1987.14 1783.44
Unallocated liabilities 205.99 212.13
Total liabilities 77.69 94.94 68.02 28.11 69.52 140.32 39.81 25.38 196.23 128.84 13.84 10.30 81.13 35.45 34.75 26.08 4042.65 3634.26
C. OTHERS
Capital expenditure 5.39 5.11 - 0.01 64.53 20.30 113.95 98.85 99.00 233.77 1.95 1.98 7.54 5.59 75.25 54.44
Depreciation 12.24 13.06 0.04 0.05 43.28 41.76 11.55 5.06 63.92 47.62 1.97 2.96 1.66 2.00 12.03 9.68
Non cash expenses other than depreciation 0.02 0.30 1.43 0.03 0.55 0.22 - - 0.27 0.30 - - 1.62 0.23 0.32 0.62

# As ‘Chemicals’ and ‘Plastics’ business of the Company have become more interrelated and similar during the year and based on the factors detailed in Accounting Standard (AS) - 17, ‘ Segment Reporting’ notified under Companies (Accounting Standard)
Rules, 2006, these segments have been combined into one segment namely ‘Chloro-Vinyl’

DSCL ANNUAL REPORT ‘08-’09 87

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

7. Disclosure in respect of assets taken on lease on or after April 1, 2001 under Accounting Standard AS-19 “Leases”.
(i) General description of the finance lease:
Bioseed Research Philippines Inc has entered into finance lease arrangement for vehicles and office equipment. Some of the
significant terms and conditions of such leases are as under:
- renewal for a further period on such terms and conditions as may be mutually agreed upon between lessor and the
Company.
- assets to be purchased by the Company or the nominee appointed by the Company at the end of the lease term.
(ii) Reconciliation between the total of minimum lease payments at the balance sheet date and their present value:
Rs. Crores
Total Not later than Later than one year
one year but not later than five years
This Previous This Previous This Previous
year year year year year year
Total of minimum lease payments
at the balance sheet date 0.47 0.44 0.20 0.19 0.27 0.26
Less: Future finance charges 0.08 0.08 0.03 0.03 0.05 0.06
Present value of minimum lease
payments at the balance sheet date 0.39 0.36 0.17 0.16 0.22 0.20
(iii) General description of the operating lease
(a) The Company has entered into lease agreements for lease of offices, retails outlets etc., generally for a period of 5/15 years,
which can be terminated, by serving notice period as per the terms of the agreements
(b) Rs. Crores
This Year Previous Year
Total of minimum lease payments 13.19 10.06
The total of minimum lease payments for a period:-
- Not later than one year 7.97 4.40
- Later than one year and not later than five years 5.07 5.36
- Later than five years 0.15 0.30
(c) Lease payment recognised in profit and loss account for the year 19.11 11.83

8. Earnings per share

This Year Previous Year
Net profit for the year as per profit and loss account (Rs. Crores) 122.61 672.71
Exceptional income, net of taxes of Rs. 105.62 crores (Rs. Crores) - 674.02
Net Profit after tax but before exceptional items (Rs. Crores) 122.61 (1.31)
Basic/Weighted average number of equity shares outstanding 165,903,320 165,903,320
Basic and diluted earnings per share in rupees (face value – Rs.2 per share)
- Before exceptional item 7.39 (0.08)
- After exceptional item 7.39 40.55
9. Related party disclosures under Accounting Standard -18
A. Name of related party and nature of related party relationship
Key Managerial Persons, their relatives and HUFs : Mr. Ajay S.Shriram, Mr. Vikram S.Shriram, Mr. Rajiv Sinha, Mr. Ajit
S.Shriram, Mr. N.J. Singh, Mr. Aditya A. Shriram (relative of Mr. Ajay S. Shriram), Mrs. Divya Sinha (relative of Mr. Rajiv
Sinha), Ms. Arunima Sinha (relative of Mr. Rajiv Sinha), M/s. Ajay S.Shriram (HUF), M/s. Vikram S.Shriram (HUF)
B. Transactions with Key Managerial Persons, their relatives and HUF’s.
Key Managerial Personnel,
their relatives and HUFs
This Year Previous Year
Rs. Crores Rs. Crores
Hire of premises - rent paid 2.43 2.10
Security deposit given - 1.00
Security deposit received back 0.02 0.07
Fixed deposit received 0.02 -
Managerial remuneration including commission 6.77 3.82
Balance outstanding as at the year end
- Security deposits for premises hired 8.75 8.77
- Fixed deposits 0.09 0.07
- Commission payable 2.07 -

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 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

10. The Government of India, Ministry of Fertilizers, issued fertilizers bonds aggregating Rs. 106.47 crores (2007-08: Rs. 163.00
crores) to the Company in lieu of fertilizer subsidy receivable to enable the companies to sell these bonds in the market to realize its
receivables. In accordance with this intent, the bonds have been classified as ‘Other Current Assets’ during the year as against
‘Investments’ in previous year.

11. Details of Pre-operative expenses pending allocation included under Capital work in progress in Schedule 5 is as under:
Rs. Crores

Particulars This Year Previous Year

Raw materials consumed 0.06 -
Stores, spares and components 0.01 -
Repairs to Plant and machinery - 0.06
Salaries, wages, bonus, gratuity, commission etc. 1.72 3.11
Provident and other funds 0.07 0.17
Welfare 0.03 0.03
Rent - 0.02
Insurance 0.08 0.58
Freight and transport 0.08 2.36
Exchange fluctuation (4.53) 8.32
Miscellaneous expenses 3.08 3.39
Interest 12.19 5.24
Depreciation 0.03 0.01
12.82 23.29
Add: Brought forward from the previous year 21.80 44.61
Less: Capitalised during the year 30.08 46.10
Transferred to capital work-in-progress 4.54 21.80

12. Provision for contingencies aggregating to Rs. 12.09 crores (2007-2008 - Rs. 12.09 crores) in Schedule 8 represents the maximum
possible exposure on ultimate settlement of issues relating to reconstruction arrangement of the companies.
13. Amount of borrowing costs capitalised to fixed assets during the year Rs. 12.19 crores (2007-2008 - Rs. 5.24 crores)
14. Category wise quantitative data about Derivative Instruments:
Nature of Derivative Number of deals Purpose Amount in foreign Amount in Rs. Crores
currency (in Crores)
This Previous This Previous This Previous This Previous
Year Year Year Year Year Year Year Year
US Dollar Interest rate swap 3 5 Hedging Hedging USD 1.70 USD 3.1 86.16 124.00
Overnight Index swap - 1 Hedging Hedging - - - 25.00
Currency swap 2 - Hedging - USD 1.00 - 50.68 -
Currency swap 3 - Hedging - JPY 251.25 - 128.17 -
Coupon swap 4 4 Conversion of Conversion of USD 0.50 USD 0.5 25.34 20.00
Indian Rupee Indian Rupee
denominated denominated
coupons into coupons
USD coupons into USD
coupons
Options 1 1 Hedging Hedging JPY 58.75 USD 0.5 29.97 20.00

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 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

Foreign Currency exposures that are not hedged by derivative instruments or otherwise is as follows:
Particulars This Year Previous Year
Amount in foreign Amount in Rs. Crores Amount in foreign Amount in Rs. Crores
currency (in Crores) currency (in Crores)
Loans - - USD 2.25 90.15
Current liabilities USD 0.07 3.42 USD 0.17 6.78
- - EURO 0.006 0.36
JPY 0.05 0.03 JPY 1.62 0.65
Current Assets USD 0.01 0.54 USD 0.08 3.39
GBP 0.00037 0.03 GBP 0.001 0.06
EURO 0.15 9.77 EURO 0.005 0.31
JPY 0.04 0.02 - -

15. In pursuance of an Umbrella agreement dated January 30, 2006 entered into between the Company (DSCL) and M/s Shri Ganpati
Fertilizers Limited (SGFL), a supplier of SSP products, DSCL provided financial assistance against security of all immovable assets
and movable assets of SGFL and pledge of equity shares of SGFL held by its promoters. On continuous non-compliance with the
terms of the agreement, DSCL invoked the security clause and got 81.41% of the total shares held by the promoters transferred in
its name on May 5, 2008. Since complete information/records were not available, the financial statements of SGFL as at March 31,
2009 have been prepared on the basis of the available records and information for the period upto May 5, 2008 and current year
records maintained thereafter by the current management.
16. In view of the financial statements of companies, which became subsidiaries during the year, being incorporated in these consolidated
financial statements, net fixed assets are higher by Rs. 4.53 crores (2007-2008 - Rs. 36.54 crores,) current assets and loans and
advances are higher by Rs. 12.38 crores (2007-2008 - Rs. 0.85 crores), current liabilities are higher by Rs. 1.32 crores (2007-2008
- Rs. 0.08 crores), and profit after tax is lower by Rs. 2.52 crores (2007-2008 - Rs. 0.12 crores).
17. DSCL had accounted for cane purchases for sugar year 2007-08 at Rs. 110 per quintal, the rate at which it has made payment to
the cane growers as per the interim order of the Hon’ble Supreme Court, against the price of Rs. 125 per quintal fixed by the Uttar
Pradesh State Government. Necessary adjustments will be made in accordance with the orders of the Hon’ble court in the matter.
18. Employee Benefits
The Company has classified the various benefits provided to employees as under:-
i) Defined contribution plans
The Company has recognized the following amounts in the profit and loss account:
Rs. Crores
This Year Previous Year
- Employers’ contribution to provident fund 10.75 9.95
- Employers’ contribution to superannuation fund 6.50 9.02
- Employers’ contribution to employees’ state insurance corporation 0.26 0.21
ii) Defined benefit plans
a) Gratuity
b) Compensated absences – Earned leave/ sick leave

DSCL ANNUAL REPORT ‘08-’09 90

 DCM SHRIRAM
Consolidated Financial Statements (Continued) CONSOLIDATED LIMITED

13. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)

In accordance with Accounting Standard 15 (revised 2005), actuarial valuation was done in respect of the aforesaid defined benefit plans and
details of the same are given below :-
Rs. Crores
Compensated absences
Gratuity Gratuity Earned leave Sick leave
(Funded) (Unfunded) (Unfunded) (Unfunded)
This Previous This Previous This Previous This Previous
year year year year year year year year
Discount rate (per annum) 8% 8% 8% 8% 8% 8% 8% 8%
Future salary increase 4% 4% 7% 7% 7% 7% 7% 7%
Expected rate of return on plan assets 8% 8% - - - - - -
In service mortality * * * * * * * *
Retirement age 58/60 58/60 58/60 58/60 58/60 58/60 58/60 58/60
years years years years years years years years
Withdrawal rates:
- upto 30 years 5% 5% 3% 3% 3% 3% 3% 3%
- upto 44 years 5% 5% 2% 2% 2% 2% 2% 2%
- above 44 years 5% 5% 1% 1% 1% 1% 1% 1%
I. Expense recognised in profit and loss account
Current service cost 0.07 0.06 3.02 2.60 2.28 3.05 1.01 0.87
Interest cost 0.03 0.02 3.42 2.95 1.36 1.04 0.97 0.80
Expected return on plan assets (0.03) (0.03) - - - - - -
Net actuarial( gain) / loss recognised in the year 0.07 0.07 2.07 2.55 0.83 0.23 (0.57) (0.46)
Total expense 0.14 0.12 8.51 8.10 4.47 4.32 1.41 1.21
II. Net asset/(liability) recognised in the
balance sheet as at March 31, 2009
Present value of Defined benefit obligation 0.47 0.34 46.95 40.77 18.41 15.55 12.68 11.27
Fair value of plan assets 0.40 0.28 - - - - - -
Funded status [surplus/(deficit)] (0.07) (0.06) (46.95) (40.77) (18.41) (15.55) (12.68) (11.27)
Net asset/(liability) as at March 31, 2009 (0.07) (0.06) (46.95) (40.77) (18.41) (15.55) (12.68) (11.27)
III. Change in the present value of
obligation during the year
Present value of obligation as at the
beginning of the year 0.34 0.21 40.77 36.81 15.55 13.12 11.27 9.98
Interest cost 0.03 0.02 3.42 2.95 1.36 1.04 0.97 0.80
Current service cost 0.07 0.06 3.02 2.60 2.28 3.05 1.01 0.87
Benefits paid (0.04) (0.02) (2.33) (4.14) (1.61) (1.89) - -
Actuarial (gains) / losses on obligation 0.07 0.07 2.07 2.55 0.83 0.23 (0.57) (0.38)
Present value of obligation as at the
end of the year 0.47 0.34 46.95 40.77 18.41 15.55 12.68 11.27
IV. Change in fair value of assets during the year
Fair value of plan assets at the beginning
of the year 0.28 0.25 - - - - - -
Expected return on plan assets 0.03 0.03 - - - - - -
Contributions by employer 0.12 0.06 - - - - - -
Actual benefits paid 0.04 0.06 - - - - - -
Fair value of plan assets at the end of the year 0.39 0.28 - - - - - -
Actual return on plan assets 0.03 0.03 - - - - - -
V. The major categories of plan assets as a
percentage of total plan
Funded with LIC 100% 100% - - - - - -

* LIC (1994-96) duly modified

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 DCM SHRIRAM
CONSOLIDATED LIMITED

19. 'Excise duty' on sales has been deducted from gross sales on the face of profit and loss account. 'Increase/ (decrease) in excise
duty on finished goods' has been shown under the head 'Manufacturing and other expenses' in schedule 10.
20. Previous year's figures have been recast, wherever necessary.
21. Schedules 1 to 13 form an integral part of the financial statements.

DSCL ANNUAL REPORT ‘08-’09 92