DSCL Ar Final

Contents
01 Our Businesses
02 DSCL's Facilities
03 Our Core Values and Beliefs
04 Board of Directors
05 Senior Executive Team
06 Financial Highlights
10
07 Chairman and Vice-Chairman's Statement 12
08 Management Discussion and Analysis
14
09 Corporate Social Responsibility
32
10 Directors' Report
35
11 Corporate Governance Report
42
12 Financial Statements
49
01
Our Businesses
Kota Manufacturing Complex
CHLORO-VINYL BUSINESS
Chemicals
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. It has two
manufacturing facilities located at Kota (Rajasthan) and
Bharuch (Gujarat) with full captive power.
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 and installation
at the customers site.
Plastics
AGRI-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.
Urea
i.
ii.
business by increasing the capacity from 14,000 TCD to

33,000 TCD by setting up two new mills in Central U.P.
and also enhancing the co-generation capacity from 24
MW to 81 MW.
its 51% subsidiary Shriram Bioseed Genetics India Ltd.

The company also operates its seeds business in Vietnam
and Philippines also via joint venture.
Hariyali Kisaan Bazaar
OTHER BUSINESSES
It is a one stop solution to the multiple needs of the rural

communities (both farming and family needs). Currently
we have 28 such bazaars in operation.
Agri-Inputs business
This business provides total agri-inputs to farmer
community by marketing a range of fertilizers, micronutrients, hybrid seeds, pesticides etc through its existing
distribution network.
Hybrid Seeds
DSCL offers a range of hybrid seeds in the country through
Textiles
The Company has a small textile operation in the form of
8800 spindles spinning unit at Tonk in Rajasthan.
Energy Services (ESCO)

This business assists energy users (industrial,
institutional, commercial users) in achieving efficiency in
energy usage, provides engineering at project
management services for biomass/conventional fuel
based power plants.
DSCL has the countrys lowest cost naphtha based urea

plant with a capacity of 3.79 lakh T.P.A., located at its
integrated manufacturing facility at Kota. DSCL is one of
Indias oldest manufacturers of Urea.
PVC Resin is fully integrated with captive production

of acetylene, chlorine and coal based power, located
at Kota.
Sugar
PVC Compounds of which DSCL is the largest

manufacturer is backed by an Innovative Polymer
application development centre (iPAC) at Gurgaon,
India.
DSCLs Sugar business is one of the key segments of

DSCLs extensive agri-business presence. DSCLs sugar
business comprises of two factories with a combined
capacity of 14,000 TCD in Central U.P. and Co-generation
capacity of 24 MW. The company is further expanding this
iii. The Cement business, located at Kota is based on
DSCL ANNUAL REPORT 05-06
02
03
DSCL's Facilities
Our Core Values and Beliefs
DSCLs core values and beliefs are a reflection of its commitment to build a world class,
learning organisation, 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

6
7
9
3
4
People Development
10
Work closely as a cohesive, well-knit team

Inculcate a spirit of openness and collaboration
Relationships and Human Dignity

5 12
11
Continuously improve and upgrade the skills and competencies of our people
Support people to realise their potential
Team Work
Think differently and promote creativity

Make continuous improvement a way of life; drive excellence
Products and their location of manufacture

Location
Products
Kota, Rajasthan (1)
Urea, Chlor-alkali, Stable bleaching powder,
Calcium Carbide, PVC resin, PVC Compounds,
Cement and UPVC windows
Bharuch, Gujarat (2)
Chlor-Alkali
Ajbapur,Uttar Pradesh (3)
Sugar
Rupapur, Uttar Pradesh (4)
Sugar
Hyderabad, Andhra Pradesh (5)
Hybrid seeds
Vietnam and Philippines
(Under a Joint Venture)
Gurgaon, Haryana (6)
Innovative Polymer application centre.
Delhi (7)
DSCL ESCO (100% Subsidiary)
Tonk, Rajasthan (8)
Textiles
Bhiwadi, Rajasthan (9)
Fenesta Windows- Fabrication unit
Mumbai, Maharashtra (10)
Bangalore, Karnataka (11)
Hyderabad, Andhra Pradesh (12) Fenesta Windows- Fabrication unit
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
04
Brief Profile of Directors of the Company
Board of Directors
Shri Ajay S. Shriram

Chairman & Senior Managing Director
Shri Vikram S. Shriram
Vice Chairman & Managing Director
Shri Rajiv Sinha
Dy. Managing Director
Shri Ajit S. Shriram
Director (Sugar)
Dr. S.S. Baijal
Shri Arun Bharat Ram
Shri Pradeep Dinodia
Shri Vimal Bhandari
Shri Sunil Kant Munjal
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.
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. Phill Degrees. He is
Chairman of the Board Audit
Committee and a Member of the
Shareholders/Investors Grievance
Committee of the Company.
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 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 Vikram S Shriram, Vice Chairman &

Managing Director, is a Director of the
graduated in Commerce with Honours
from St. Xaviers 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 Arun Bharat Ram, is a Non-Executive

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 D Sengupta, is a Non-Executive

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 Rajiv Sinha, Deputy Managing

Director, 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 Pradeep Dinodia, is a Non-Executive

1 8 . 7 . 1 9 9 4 . H e grad u ated 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 a Member
of the Board Audit Committee of the
Company.
Shri S L Mohan, a nominee of General

Insurance Corporation of India, is a
Non-Executive Director of the
retired as Chairman & Managing
Director of Oriental Insurance
Company Ltd. in February, 2005. He is
B.E. (Mechanical) from Punjab
University, Chandigarh.
Shri Ajit S Shriram, Director (Sugar),

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.
Shri Vimal Bhandari, is a Non-Executive

1 3 . 5 . 2 0 0 3 . H e grad u ated 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 Manager India of
AEGON N.V.
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.
Shri D. Sengupta
Shri S.L. Mohan
GIC Nominee
Shri S.C. Bhargava
LIC Nominee
Company Secretary
Shri V.P. Agarwal
Audit Committee
Dr. S.S. Baijal

Chairman
Shri D. Sengupta
05
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 Senior Executive Team are listed below:
Mr Ajay S Shriram
Chairman & Senior Managing Director
Mr Sovan Chakrabarty
Senior Vice President & Business Head Agri Inputs
Mr Vikram S Shriram
Mr Rajat Mukerjei
Vice President and Business Head Plastics
Mr Rajiv Sinha
Mr Rajesh Gupta
Vice President and Business Head Hariyali Kisaan
Bazaar
Mr Ajit S Shriram
Director (Sugar Business)
Mr S D Omchary
Chief Executive Director (Textiles & Real Estate
Development)
Mr S K Agrawal
Senior Executive Director - Chemicals Business
Dr G Mukhopadhyay
Vice President & Business Head -- Shriram PolyTech
Mr Sandeep Mathur
Vice President & Business Head Fenesta Building
Systems
Mr J K Jain
Chief Financial Officer (CFO)
Mr K K Kaul
Executive Director & Resident Head Kota
Manufacturing Complex
Mr. Sushil Baveja

Head - Corporate HR
Mr Sunil Radhakrishna
Executive Director Sugar Business
Mr V P Agarwal
Company Secretary
Dr G C Datta Roy
Chief Executive Energy Business
Dr Sharad Sharma
President - Shriram Bioseed Genetics India Ltd.
06
Financial Highlights
Financial Highlight
Financial Highlights
2000
2001
2002
(Rs. Crores)
2006
2003
2004
2005
Gross Sales
934.6
1055.4
1180.9 1376.0
Net Sales
- Own Products
777.3
826.0
828.1 1059.7
- Traded
87.8
156.8
280.4
235.0
- Total
865.1
982.8
1108.5 1294.7
PBDIT
132.7
156.1
143.7
187.2
Interest
62.2
66.5
65.4
61.9
PBDT
70.5
89.6
78.3
125.3
Depreciation & Misc. exp. w/off
40.8
44.5
47.4
54.8
PBT
29.7
45.1
30.9
70.5
Profit after Current Tax
29.5
41.3
28.5
58.7
Profit after Deferred Tax
29.5
41.3
11.2
52.7
Total Funds Employed/ Utilised
864.5
895.5
884.7
915.9
Share Capital - Equity
16.7
16.7
16.7
16.7
- Preference
25.0
5.0
Net Worth
295.1
324.9
227.3
272.5
Minority Interest
10.2
Deferred Tax liability
84.6
89.5
Long term loans
410.4
419.3
401.8
403.0
Short term loans
134.0
146.2
171.0
140.8
Net Fixed Assets
565.6
594.6
592.5
652.1
Net Current Assets
259.6
259.7
276.1
256.9
Investments
29.6
33.3
7.1
6.4
Misc. Exp. (to the extent not written off)
9.8
9.9
9.0
0.5
Earnings per share (Rs.)*
1.6
2.3
0.7
3.2
Dividend per share (Rs.)*
0.8
0.9
0.9
0.9
- *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
1556.6
1977.4
2535.8
1182.7
280.7
1463.4
201.3
42.1
159.2
55.2
104.0
95.7
75.6
920.7
16.7
1404.7
464.2
1868.9
235.3
34.7
200.6
57.3
114.8
93.6
107.7
1259.2
16.7
1788.9
603.0
2391.9
295.1
49.4
245.7
73.2
172.5
153.2
121.0
1775.0
33.3
333.0
12.0
109.5
344.7
121.5
652.8
260.1
7.7
443.2
14.9
95.4
504.7
201.1
870.0
356.2
33.0
525.5
17.7
146.7
740.2
344.9
1272.5
490.9
11.7
4.4
1.2
6.3
1.6
7.1
0.9
2004
22.8
20.2
17.0
1.6
3.6
6.4
1.7
1.0
1.4
2.3
4.8
2005
24.3
21.6
16.8
1.6
2.5
7.7
2.1
1.1
1.6
2.5
6.8
2006
23.0
18.7
16.5
1.5
2.8
6.8
2.5
1.4
2.1
3.2
6.0
Ratios
2000
2001
2002
2003
Return on Net Worth
10.0
12.8
5.0
19.4
Return on Capital Employed
13.4
15.8
14.5
18.1
Operating Margin
17.1
18.9
17.4
17.7
Capital Employed turnover ratio
1.1
1.2
1.2
1.4
Interest to Net Sales %
8.0
8.1
7.9
5.8
PAT to Net Sales %
3.8
5.0
1.4
5.0
Long term Debt/PBDIT
3.1
2.7
2.8
2.2
Long term Debt/Net Worth
1.4
1.3
1.8
1.5
Total Debt/Net Worth
1.9
1.7
2.5
2.0
Total Outside Liabilities/Net Worth
2.3
2.1
3.2
2.5
Interest Cover
2.1
2.3
2.2
3.0
- Net Sales for above purposes is for own products only
- Drop in PAT & Net worth related ratios in 2002 due to deferred tax provisioning.
(Continued)
A section of Chlor Alkali Plant, Kota
10
11
07
From the Chairman and Vice Chairman's desk
DSCL will accelerate growth and further

strengthen its competitive position in
coming years
Dear Friends,
It is a pleasure to report another year of all round progress
The company is excited and encouraged by the progress
these measures, we believe, will enable a larger number
made in its new initiatives, i.e. Hariyali Kisaan Bazaar and
of investors to participate in the growth of the Company.
Fenesta Building Systems.
with strong growth in revenues and profits, successful
Nurturing human resources across all levels to equip them
completion of our growth initiatives in Chloro-Vinyl
Hariyali Kisaan Bazaar (HKB), our rural retail offering has
to face the future challenges is a key priority for your
businesses, initiating significant growth plan in Sugar
started to impact the life of the rural community around
company and we plan to give our fullest attention to the
business and in our new businesses i.e. Hariyali Kisaan
the stores catchment area. This is due to the unique
same.
Bazaar and Fenesta Building Systems.
offerings made, which provide the rural consumer with all

the products and services he needs for his farming as well
Strengthening relationships with all key stakeholders i.e.
The Turnover and Operating Profits grew by ~ 28% and
as for his daily needs in a fair and transparent manner. This
Customers, Suppliers, Financial partners is another focus
25% during the year to reach ~Rs. 2500 crores and
year we have increased the number of stores from 16 to
area for us and we deeply appreciate their confidence and
Rs. 295 crores respectively.
28. Buoyed by good response we have received from the
trust in the Company.
The projects to increase the capacity of Chlor-Alkali, PVC
extend the geographical spread in coming years.
rural customer we plan to accelerate the growth and
Resin, Cement and Captive Power by 50% were
We believe that DSCL has now reached a position of

sustained and accelerated growth built on integration and
completed during the year at a total investment of Rs. 335
'Fenesta' Building Systems has also received strong
crores. The group also decided to implement projects to
acceptance from customers across all markets. The
increase sugar capacity from 11,000 TCD to 33,000 TCD
growing acceptance of Fenesta windows has encouraged
at an investment of Rs. 550 crores in two phases. The first
us to expand our product range, extrusion capacity, and
phase has been completed in this year where we have
fabrication capacity, and extend the sales and installation
raised capacity from 11,000 TCD to 14,000 TCD. In the
network across all major cities.
a strong competitive position.
With best wishes,
second phase the capacity would be raised from 14,000
12
TCD to 33,000 TCD. The second phase of expansion will
The Company also made its first ever bonus issue in the
be completed by November 2006.
ratio of 1:1 and a 1:5 share split during the year. Both
(VIKRAM S. SHRIRAM)
Vice Chairman &
Managing Director
(AJAY S. SHRIRAM)
Chairman &
Sr. Managing Director
13
Management Discussion and Analysis

Chlor Alkali Plant, Bharuch, Gujarat
PERFORMANCE OVERVIEW
The company recorded satisfying overall performance in
FY 2005-06:
The consolidated group turnover of over Rs. 2500

crores, an increase of 28% over last year.
The operating profit going up to Rs. 295 crores, an
increase of about 25% over last year.
Completion and stabilisation of expansions in the
Chlor-alkali, PVC resin and Calcium carbide
businesses along with 40 MW thermal power plant.
Completion of the first phase of expansion in sugar
business raising capacity from 11,000 TCD to
14,000 TCD and satisfactory progress on two new
mills to raise the capacity to 33,000 TCD by
November, 2006.
Substantial progress in our newer initiatives i.e.
Hariyali Kisaan Bazaar, Fenesta Building Systems
and ESCO businesses.
Upgrading of the credit rating of the Company by
ICRA from A+ to AA-.
Encouraged by the overall progress of the businesses,

your directors announced the companys first Bonus
Issue in August 2005 in the ratio of 1:1. The stock
market also took note of the companys performance
resulting in a growth in market capitalisation by over
100% in this financial year.
volume growth in the companys businesses

two years. This volume growth will also
company to minimise the impact of softening
Caustic soda/ Chlorine and PVC resin and
pressures.
in the next
enable the
in prices of
rising cost
In the coming year, your company proposes to continue

with its strategy of expansions in existing businesses,
strengthen cost competitiveness and aggressively grow
the new businesses i.e. Hariyali Kisaan Bazaar and Fenesta
Building Systems.
Particulars
As you are aware your Company has the following two
main lines of business:
Agri businesses comprising Agri inputs (manufactured
as well as traded) and Sugar. The rural retail business
i.e. Hariyali Kisaan Bazaar is a value added activity in
the agri area.
The expansion initiatives already completed and planned

to be completed in 2006-07 will contribute to healthy
14
Sales
EBIT
Capital Employed
Amount
Rs./Crores
324.9
128.9
352.2
% of Total
13.7
52.4
20.7
Industry overview
Chloro-Vinyl businesses comprising Chemicals and

Plastics, i.e. PVC Resin, PVC Compounds and Calcium
Carbide. Fenesta Building Systems is the latest
venture to add value to the Companys Plastics
business.
Besides the above, your company has smaller businesses

in cement, textiles and energy services. An analysis of
each of the different businesses is provided below.
Business-wise performance review and

outlook
Chloro-Vinyl businesses
The year also saw some areas of concerns which

includes softening in the selling prices of the Chloro-Vinyl
products, reduction in the custom duty for PVC and
Caustic Soda in the Budget for 2006-07, increase in
prices of furnace oil which the company uses for
generation of power at one of its facilities, delays in
payment of subsidy on fertilisers by the Government of
India and rising interest costs.
and Bharuch (Gujarat) with a total capacity of 1, 76,250

TPA, place your company amongst the top three producers
in the Country. Both the facilities have full captive power at
Kota based on Coal and in Bharuch on Furnace Oil. These
are based on cost efficient, state of the art and
environment friendly membrane cell technology. DSCL is
amongst the lowest cost manufacturers of Chlor-alkali in
India. The contribution of this business to the total
Revenue, EBIT and Capital Employed of the company for
FY 2006 is as under:-
The Chlor-alkali industry in India has about 33 operating

manufacturers with a combined installed capacity of 2.33
million tonnes per year. The largest producer has 11.6% of
total capacity and the top three constitute 28% of the total
industry. The industry is characterised by different
technologies, vintage and levels of backward and forward
linkages and thus different cost structures.
The total demand for Caustic Soda and Chlorine in the
country is approximately 1.95 million tonnes and 1.7
million tonnes respectively growing at a little below the
GDP growth rate. The demand is met primarily through
domestic manufacturers with small quantities of imports
and exports. The imports/exports are freely permitted with
the reduced customs duty level at 12.5%. The prices of
Caustic Soda are fully linked to international prices. The
prices of Chlorine are also significantly influenced by global
price dynamics.
Chemicals
significant uptrend from March 2004 started to witness a

decline in the second half of FY 2005-06. From USD
632/- per tonne in April 2005 the international ECU
prices (combined unit of one tonne of Caustic Soda and
proportionate chlorine) declined to USD 504/- tonne in
January-February 2006.
The domestic ECU prices also declined during the second
half of the year. After touching a high of Rs. 26,000-Rs
27,000 per tonne in the first quarter of the year the prices
dropped to as low as Rs. 17,000/- per tonne in the
second half and then marginally recovered to Rs.
18,000-20,000/- per tonne.
While DSCL produces caustic soda entirely for the
market, it is able to utilise almost a third of the chlorine
produced captively for production of chemicals & PVC
Resin. The balance chlorine is sold through pipelines to
dedicated customers and through tonners in the
merchant market. We enjoy long-term and strong
relationships with large customers; end users in major
Chlor alkali consuming industries such as aluminium,
paper, soap, refrigerant gases etc and have a wide
network of distributors in West, Central and north India.
Our strategy
DSCLs chemical business strategy is based on building
strong cost competitiveness and nurturing long-term, fair
and reliable relationships with customers.
Our cost competitiveness is driven by economic scale of
operations, use of best technology and process control,
backward integration for captive power (the key raw
material for this business) and forward integration into
value added products. We plan to further strengthen
these key factors to build and grow a strong and
sustainable chemical business.
DSCLs Chemicals business 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.
Caustic Soda is used in several large industries like paper,

aluminium, dyestuffs, soaps and detergents, textiles,
pharmaceuticals and DM water plants. Chlorine, on the
other hand, is used in industries like PVC, organic
chemicals, inorganic chemicals, pesticides and water
treatment.
The chemicals business reported strong revenue and

EBIT growth during the year with:
The manufacturing facilities, located at Kota (Rajasthan)
The International prices of Chlor-alkali which witnessed a
Performance and outlook
Revenues growing by 36%
15
Carbide Plant, Kota
EBIT growing by 56 %.
The overall growth was led by volume growth of

33% consequent to:
~
Commencement of commercial production in

March 2005 at its Kota Chlor Alkali plant which
underwent a capacity expansion from 139 TPD
to 250 TPD along with the conversion from
mercury cell technology to membrane cell
technology.
Commissioning of second phase of expansion at
Kota in January 2006.
After this expansion the companys total capacity of

Chlor-alkali stands at 1,76,250 TPA.
2.6% till 2010. The industry saw tight supplies and a

sharp rise in prices during the first half of 2005-06. With
some slackness in demand and commissioning of new
capacities, prices have softened since August-September
2005. After a continuous decline till February 2006, the
prices have marginally improved.
The domestic Chlor-alkali industry had been experiencing
healthy demand growth of 6-7% p.a. and high capacity
utilisation of about 85-90% in FY2006. Capacity additions
of ~ 1.94 lakh tonnes are planned in 2006/2007 which is
likely to result in excess supply in the short to medium
term. This is likely to create some further price pressures in
the domestic industry. The recent reduction in Custom
Duty by 2.5% and the spate of FTAs will accentuate the
pricing pressures on Chlor-Alkali products.
The PVC resin facilities are located as part of companys

integrated complex at Kota (Rajasthan) where the
Company has coal- based captive power plants to meet the
entire power and steam requirements of the Plastics
business.
The Company has expanded its capacity from 39,000 TPA
to 61,250 TPA of PVC resin in Q3 FY 2006 and this is
being further expanded to 70,000 TPA by June 2006. It
also has production capacity of 29,300 TPA of Calcium
carbide for market sales. The Company can produce
multiple grades of PVC resin including some high value
specialised grades. The contribution of this business to the
total Revenues, EBIT and Capital Employed of the
company for this financial year are as follows:Particulars
There have also been cost pressures on all key materials,

i.e. salt, coal, furnace oil etc. These pressures are likely to
continue in coming years.
Sales
EBIT
Capital employed
Amount
Rs./Crores
236.1
34.4
275.9
growth, India is likely to continue to be a net importer of

PVC.
The export and import of PVC resin and its intermediate
are freely permissible. The import duty on PVC resin has
been reduced dramatically from 20% in 2004 to 5%
now. Domestic PVC prices are fully linked with
international prices and mirror the movement due to
international factors.
Internationally, most of the PVC resin capacity is based
on ethylene (a petroleum based product) and thus the
cost of production of these plants is largely linked to
crude oil cycle. With the rise in crude prices, most of the
international PVC resin manufacturers have seen
significant cost increases.
% to Total
9.9
14.0
16.2
An improvement in operating efficiencies and reducing

input costs in line with global benchmarks will therefore be
the key challenge for the business.
In view of the risks of crude prices in ethylene based

processes, China has been operating 65% of its total
PVC capacity of 9.6 million tonnes based on the
carbide/acetylene route and is adding further capacities
based on this process. In India, DSCL is the only PVC
resin producer, based on carbide/acetylene route with
captive Chlorine and power facilities. .
Industry overview
Plastics
The business recorded improved margins inspite of

severe cost pressures (with Furnace oil prices going up by
almost 55%-60%) and affecting power costs at Bharuch.
This was possible with better product prices in the first
half of the year, higher volumes and cost savings due to
conversion of the Kota plant to membrane cell
technology.
The demand for chlorine internationally is expected to
grow at a CAGR of 2.5% driven largely by PVC demand.
Meanwhile, the global demand for caustic soda driven by
aluminium is projected to have a CAGR growth of over
16
DSCL has a highly integrated Plastic business which

covers manufacture of PVC resin from Calcium Carbide,
PVC compounds (an intermediate knowledge based
product) and UPVC Fenesta Windows Systems (a
consumer product). It is therefore, able to capture values
at each stage of the entire value chain.
PVC Resin and Calcium Carbide

DSCL has a fully integrated PVC resin business with
captive production of entire acetylene and chlorine
requirements. The Carbide/Acetylene process also has
Calcium carbide as an intermediate saleable product which
gives your company product- mix swing capabilities to
maximise profits.
PVC resin is one of the basic polymer used in traditional

applications such as pipes (for irrigation and construction
etc.) cables, footwear and new areas of applications such
as automobiles, medical, windows and door systems and
food packaging. All the consuming sectors are high growth
areas.
India has been registering healthy growth of over10% p.a.
in PVC Resin demand and has the potential for sustained
high growth in the medium to long term. The present
demand is ~ 1.2 million tonnes,75% of which is being met
by domestic production and remainder through imports.
There are five PVC resin manufacturers in the country with
a total capacity of about 0.90 million tonne. Only two out
of five manufacturers are fully integrated with captive
ethylene/acetylene and Chlorine. The domestic capacity is
being enhanced but with strong anticipated demand
Our strategy
We are of the view that a fully integrated carbide - based
PVC resin facility will be competitive vis-a-vis ethylene
based process particularly in view of expectations of
continued high oil prices. It also provides flexibility to
vary product mix between Calcium carbide and PVC resin
to optimise the profits of the business.
We, therefore, plan to build and grow our PVC resin
business based on the carbide route as a fully-integrated
business with captive power and chlorine supplies. We
also plan to continuously improve the cost
competitiveness of the business through technology
upgradation and strategic sourcing of key raw materials.
We also plan to upgrade the product mix to high- value
specialised grades of PVC resin to maximise profits and
minimise the impact of volatility in PVC prices.
17
prices to remain stable in the immediate future.

However, in two-three year timeframe, prices may
come under pressure if the planned major capacity
additions in some Middle East countries are actually
commissioned. The expectations of high crude prices,
however, will create cost push pressure on prices.
In the domestic market, India is expected to remain a

net importer with strong demand growth. The prices
will, thus remain around landed costs of imports.
DSCL will register volume growth in FY07 and will also

have the benefits of cost rationalisation efforts in the
medium term.
PVC Compounds
The company completed an expansion programme in

Q3 FY 2006 to increase the capacities at its Kota
plant as follows :~
~
~
18
PVC resin capacity from 39,000 TPA to 61,250

TPA.
Raw Calcium Carbide capacity from 56,100TPA
to 1, 12,000TPA.
Simultaneously, the company also expanded the
caustic/chlorine capacity, cement capacity
(which is manufactured using the sludge
generated in this process) and power generation
capacity.
The new capacities have fully stabilised and the
company has taken up a programme to further
increase PVC resin capacity to 70,000TPA by
June, 2006. The new Carbide furnace
incorporates a unique waste heat recovery
system for generating process steam.
The division recorded volume growth of 22% for PVC

resin and 44% in Calcium carbide during the year.
The realisations however saw a reduction of ~ 15%
in PVC and 6% in Calcium Carbide. It also faced cost
pressures on carbon materials and chlorine. The
operating margin, therefore, dropped from 29.1% to
14.6%
International PVC resin prices have stabilised after
recording a year of continuous decline. We expect
DSCL is one of the countrys largest PVC compound

manufacturers in the organised sector with a capacity of
23,400 MT. DSCL has been able to maintain its dominant
position in the PVC compound business against stiff
competition from smaller entities. Backed by strong
development activities led by our Innovative Polymer
Application Center (iPAC), this business grew by 40%
during FY2006 against the overall PVC industry growth of
about 10%. In the export market, this business has been
able to make a small beginning, especially for high value
added colour master batches and specialised cable
products like FRLS compounds.
Through innovative initiatives, our PVC compounds
business has been able to achieve a significant reduction in
formulation costs for several large-volume applications.
The merger of this compounding business, which used to
be a subsidiary, with DSCL has also produced the desired
results in terms of cost and business synergies.
This business strengthened its market presence by
strengthening sales and distribution/warehousing network
in all major markets across the country. This has enabled
the business to bring many new customers into its fold.
All application segments of our PVC compounds business
have shown strong growth, generally higher than the GDP.
DSCL is confident that its compounding business, backed
by its strong development and commercial initiatives in
Innovative Polymer Application Center, Gurgoan
both the domestic and export markets, will continue to

outperform the industry growth rate in all the segments.
We also plan to develop newer applications based on
speciality PVC Resin that our PVC Resin plant plans to
produce in the coming years.
Fenesta Building Systems

Product and market
The un-plasticized PVC (UPVC) windows and door
systems that DSCL markets under the Fenesta brand
were launched in May 2003. It is a natural extension of our
PVC resin and compounding business. The business has
been set up in design and technical collaboration with
Spectus( formerly M/s HW Plastics), the market leader in
this business in the U.K. The Company has a dedicated
plant for extrusion of PVC profiles at its integrated
manufacturing complex at Kota and has set up windows
fabrication facilities at major market centres i.e. Bhiwadi
(near Delhi), Bombay, Bangalore and Hyderabad. It is
currently setting up a fabrication shop at Chennai. The
sales, installation and service networks, exists in all these
aforesaid cities and in Pune and Coimbatore. It plans to
extend the entire network to other major cities across
India.
The extrusion plant is state of the art facility using
sophisticated blending, extrusion and tooling equipment
from internationally renowned suppliers. The fabrication
shops utilize advanced imported machinery.
Besides being environmentally friendly, UPVC Windows
are the logical alternative to wood. These provide superior
thermal and sound insulation and offer high tolerance for
extreme weather conditions. Moreover, these windows
require very little upkeep with the product lasting as long
as the building it is installed in. These environmentally
friendly solutions are rapidly becoming the preferred
choice of builders, architects and individual customers.
This trend is in line with practices all over the world.
end customer service and superior infrastructure provide

a definitive competitive advantage in this very discerning
and sophisticated market. The Fenesta offering is a
complete system right from fabrication and design to
installation at the customers site, resulting in consistent
quality in accordance with the clients needs. A strong
design cell has been established to evolve new options
keeping in view evolving needs of the Indian consumers.
The Real Estate sector in India has seen a lot of activity
and high growth in the last two to three years. Rising
income levels and growth in the IT/ITES sector have not
only added to the growth of the sector, but has also led to
an improvement in construction quality with offerings of
international standards. With the government allowing
51% foreign direct investment, the sector is also likely to
witness globalization of construction practices in India.
These trends augur well for the high quality windows and
door systems.
Fenesta is the pioneer of UPVC windows in the country
and its brand has become almost synonymous with
UPVC windows in the country. Of late some other
players (both domestic and international) have entered in
the market, which will lead to faster growth of the UPVC
Windows in India.
We expect UPVC windows to emerge as dominant
windows system in the country in medium term. This
trend, along with the overall high growth in construction
segment, should result in rapid growth in UPVC Windows
business in the medium term.
Our strategy
DSCLs strategy in this business is aimed at following:
To make customer aware about UPVC windows and

its advantages and thereby grow the overall market.
To offer to customers international products
designed to meet local conditions.
To strengthen in-house designing, profile extrusion,
fabrication, installation and service capabilities so as
DSCLs technological edge, contemporary design, end to
19
to offer end to end solution to customers and exercise

complete quality control over the entire value chain.
To build Pan-Indian presence which enables being
close to customers, ensures better delivery of
products and services and economises on logistics
costs.
To build Fenesta as a customer focussed brand
delivering superior value.

Fenesta windows have found increasing acceptance in all
markets wherever it has been launched in the country and
across all segments multi- storeyed housing, commercial
and factory buildings and individual buildings. It reached an
order booking of 1.16 lakh windows in 2005-06
(approximate value Rs. 67 Crore.) vis-a-vis 0.25 lakh
windows in 2004-05. We expect to record very high
growth in order booking for next two or three years.
Along with order booking, the turnover, which reflects
order execution, has also started registering growth.
Accordingly, we are expanding extrusion and fabrication
facilities and also launching new products to meet the
specific requirements of different markets. At the
expected rate of growth of product acceptance, we expect
to breakeven in the next 12 to18 months and start making
healthy returns in this business in the medium term.
However, with the rise in furnace oil prices (almost by

60% this year) which is expected to remain at high
levels, the company is evaluating other fuel options to
generate captive power at this facility.
In addition to the above, DSCL has a 24 MW bagasse
based power generation capacity at its sugar facilities.
Alongwith the capacity expansion in sugar business from
11,000 TCD to 33,000 TCD, the company is also
enhancing its co-generation capacity from 24 MW to 81
MW out of which it proposes to export 38 MW to the
grid.
Agri-Businesses
Urea
DSCL is Indias lowest cost naphtha-based producer of
urea, with its plant located at its integrated
manufacturing complex at Kota, Rajasthan. The plant is
permitted by Department of Fertilizers, Government of
India, to sell upto 3.79 lakh tonnes of urea per annum.
The contribution of this business to the total Revenues,
EBIT and Capital Employed of the company for FY 2006
is as follows:Particulars
Power
The Company derives competitive advantages in its
businesses due to availability of cost effective and reliable
sources of captive power. In line with our capacity
expansion in the Chloro-Vinyl businesses, the company
has enhanced its captive power capacity from the earlier
85 MW to 125 MW at its integrated manufacturing facility
complex at Kota. The entire power capacity at Kota is Coal
based.
The manufacturing facility at Bharuch, Gujarat is provided
with furnace oil DG sets that provide 24 MW of power.
Turnover
EBIT
Capital employed
Amount
Rs./Crores
600.5
21.3
237.2
% to Total
25.2
8.7
13.9
Industry overview
Fertilisers are basic man-made nutrients supplied to the
soil in order to replenish the depletion or original
deficiency of such nutrients. India is the third largest
producer and consumer of chemical fertilisers and
accounts for about 12% of total global consumption.
Power Plant, Kota
20
21
Owing to its importance with regard to the agriculture

sector and the farmers limited purchasing power, the
fertiliser industry is heavily regulated by the government
in terms of pricing, capacity additions, as well as
distribution of manufactured urea to various regions of the
country.
A good monsoon firms up the demand and lifting of
Fertilizers whereas an unfavourable monsoon dampens
the demand and results in manufacturers offering heavy
discounts. The domestic fertiliser year is broadly divided
into the kharif (JulyOctober) and rabi (October-March)
cropping seasons and fertilizer consumption is evenly
distributed in both the seasons.
Urea is the most widely consumed fertilizer in the country
accounting for 60% of the fertilizer consumption. The
reason is the low selling price (as decided by the
government), and high level of nitrogen content (46%),
making it more attractive than other fertilizers. Urea
production uses a variety of feedstock such as Naphtha,
Fuel oil, Coal, Natural Gas and LSHS. The choice of
feedstock has been determined by the government
policies at that point in time. Approximately 41% of the
capacities use Natural gas and almost 26% use Naphtha
as a feedstock. On the supply side the top six players
account for 65% of the total domestic production in the
country.
Our strategy
Our strategy in this business has been to be amongst the
countrys lowest cost producers, to build a strong market
presence based on trusted farmer relationship and
extensive distribution network. We are the lowest cost
naphtha-based manufacturer of urea in the country. To
further improve our competitiveness, we are getting ready
to connect to LNG feedstock by September/October
2006. We are negotiating long- term gas supply
agreements with LNG suppliers. Once we convert to LNG,
our cost of production would be substantially reduced and
our competitiveness strengthened compared to imports.
Retention pricing system

Urea is the only fertilizer that is still administered under
the governments retention price scheme. In the year
2002-03, the government had announced its long term
pricing policy (Group Concession Scheme) which was
effective from April 1, 2003 and was divided into three
phases. The fiscal year under review represented the last
year of the second phase of the policy that began on
April 1, 2004. Under this phase the energy consumptions
norms were tightened and expressed in terms of energy
consumed instead of quantity of inputs. Moreover, as
costs were frozen at FY 2003 levels, inflationary
pressures in the economy have impacted the margins of
players in this business. The government is working out
the pricing policy for Stage III to be effective from 1st
April 2006 and is expected to announce this soon.
22
Our fertiliser business experienced good demand during

the year under review due to satisfactory and widespread
rainfall. Margins, however, came under pressure as we
received no reimbursements for cost increases in various
inputs/ bagging costs. The interest costs also went up
sharply as the government delayed subsidy payments in
the second half of the year against both notified and
unnotified prices.
The outlook for this business, as discussed above, is
determined by multiple factors including government
policy. The industry is awaiting the governments
announcement on policy parameters for the third phase. It
also expects that government will work out an
arrangement to ensure timely subsidy payments to the
23
industry. Our focus in the meantime is to continuously

improve our operational efficiencies and maintain our
leadership status as a low cost manufacturer.
Sugar
The sugar business is one of the key segment of DSCLs

extensive agri-business presence. DSCL entered this
business in 1996-97 and has been continuously growing it
over this period.
We currently operate two sugar mills in central Uttar
Pradesh with contiguous cane area. The first at Ajbapur
has a capacity of 7500 TCD and a total power generation
capacity of 18.0 MW (including 7.5 MW for supply to the
grid). The second plant at Rupapur has a 6500 TCD
capacity and an 8.5 MW captive power plant. The
contribution of this business to the Revenue, EBIT and
Capital employed of the company for FY 2006 is as
follows:
Particulars
Turnover
EBIT
Capital employed
Amount % to Total
Rs./Crores
363.6
15.3
72.3
29.4
566.9
33.3
The company is implementing a plan to expand sugar

capacity to 33,000 TCD by November, 2006, which
includes setting up two new factories in central U.P. We
also plan to increase power generation capacity to 81 MW
(including 38 MW for exports to grid) with last phase of
this expansion to be completed by November 2007.
Industry overview
24
India is the largest consumer and the worlds secondlargest producer of Sugar. It enjoys strong cost
competitiveness, being amongst five lowest cost
sugar producers in the world.
Though a large consumer and producer, its share in
world trade is very small as it uses most of the sugar
produced within the country. The consumption has

been growing at an average rate of 4.5% p.a.
Sugar production in India has been very cyclical with
few years of high production followed by years of
low production. Cycles are led by either cane arrears
or climatic factors.
India registered a continuous increase in sugar
production since 1997-98 till 2002-03 when
production went up from 12.9 million tonnes to 20.1
million tonnes. It dropped sharply in 2003-04 and
2004-05 to 14.0 million tonnes and 12.7 million
tonnes respectively.
The low production led to utilisation of high carry
over sugar inventory built up till 2002-03 in the
country. India had to import ~ 3 million tonne of
sugar in the last two years to meet its demand. These
imports carry a re-export obligation in 200506/2006-07.
2005-06 is expected to record production level of ~
18.5 million tonnes against expected consumption
of ~ 19 million tonnes. Production is likely to further
go up by 12.5% to 15% in 2006-07 in a normal
monsoon scenario.
In view of the large re-export obligations, the
domestic availability, however, will continue to be
reasonably tight even in 2006-07.
U.P. has replaced Maharashtra as the largest sugar
producing state and is also expected to register
consistent growth in sugar production in the coming
years. The state has seen large investments in the
sugar industry by the Private Sector and has also
seen consolidation of industry.
The sugar industry has also seen several structural
changes in the last few years, both globally and in
the domestic sector. The significant ones are :
~ Focus on its potential to provide ethanol, a
substitute for petrol. This is significant given
high oil price expectations in the medium term.
~ Phasing out of subsidies provided to the
domestic sugar industry by the European Union.
~ Acceptance and encouragement to bagasse
based co-generation of power by almost all state
governments in India. It is a more environment friendly and economical option for the country.
~ Recognition by Central and State Governments
of the positive impact of the sugar industry in
overall rural development, resulting in incentives
to industry as well as pragmatic policies.
These structural changes are expected to improve the

viability of sugar operations and result in the sustained
growth of sugar production in the country in coming
years.
Price trends
International prices of sugar have been witnessing a bull
run since the beginning of this financial year especially
from November 2005. Sugar prices have increased from
USD 258 per tonne in April 2005 to close at USD 480 per
tonne in March 2006. Various factors have influenced this
bull run, some of which are mentioned below:
Brazil: Brazil is the largest producer of sugar globally

with a production of 28.2 million tonnes. It is also the
largest exporter of sugar in the world with a share of
around 35% of the global market. Due to the increase
in crude oil prices and high demand of flexi fuel cars a
large amount of sugarcane is getting diverted for the
manufacture of ethanol reducing the cane available for
sugar production.
E.U. comprising of 25 countries, is an important player
in the sugar industry. It is the second largest exporter
of sugar despite having the highest cost of production,
due to the complex structure of subsidies and quotas

imposed by EU on imports and exports. EU exports
almost 5.5 millon tonnes of sugar, which would drop
to almost 1.27 million tonnes going forward under a
World Trade Organization (WTO) ruling.
Thailand and Australia are major exporters of sugar.

However due to droughts in these countries the
supply in the global market is expected to decline by
almost 1.5-2.0 million tonnes.
Domestic prices have not rallied or increased to the same

extent as the international prices but are higher than last
year. Prices have increased from Rs 16,300 a tonne in
April 2005 to touch a high of almost Rs 20,000 a tonne in
January 2006.
Our strategy
DSCL believes in an economic- size sugar business fully
integrated on bagasse and molasses streams. It also
believes that an innovative Cane Development
Programme based on trusted relationships with the
farmers is the basic foundation for sugar businesses.
Sugar Factory, Ajbapur
25
We entered this business in 1996-97 and focussed first on

reaching critical size in sugar production and then started
integrating on the bagasse stream by generating and
selling power to the grid. We also intend to integrate on
molasses stream in due course.
All our factories, existing and proposed, are located in a
cluster with contiguous cane area which enables us to
derive benefits of synergies in cane development, factory
operations and by-product utilisations.
project will involve an investment of about Rs 550 crore,

and we will be eligible for U.P. state government
incentives as applicable.
The company also started export of power to Uttar
Pradesh Power Corporation limited during the financial
year 2005-06 from its existing 7.5 MW power plant at
Ajbapur.
Sugar (Rs. Crore)
We intend to focus and grow continuously within our

existing area of operations in medium term.
400
363.6
350
300
221.7
250
200
The business completed first phase of expansion of

capacity from 11000 TCD to 14000 TCD. Our overall
sugar production in the 2005-06 season went up by ~
13% over last season. Both the factories recorded lower
recoveries due to adverse climatic factors, a state wide
trend this season. The key operating parameters for the
current season vs. last season are as follows:-
Sugar Season
Start of crushing
Closure of crushing
Cane crushed (Qtl)
Recovery
Sugar produced (qtl)
Financial Year
Cane crushed (Qtl)
Sugar produced (qtl)
Sugar sold (qtl)
Ajbapur
2006
2005
Rupapur
2006
2005
31.10.2005 30.10.2004
11.04.2006 13.04.2005
10303115 9646655
10.32%
10.41%
1061200 1004500
05.11.2005 02.11.2004
02.04.2006 30.03.2005
7772300 5930112
9.23%
9.57%
712930
568659
10481224
1081590
1166967
9109650
941459
840549
7772300
712930
778117
6008652
580176
404201
The projects for further capacity expansion to 33,000 TCD

by the next crushing season of 2006-07 are progressing as
per schedule. This expansion will be accompanied with an
increase in co-gen power capacity from 24MW to 81MW,
including 38MW for export to the state grid. This
additional co-gen capacity enhancement is expected to be
implemented by November 2007. The sugar and co-gen
26
150
100
72.3
49.8
50
0
FY 2006
Revenue
FY 2005
EBIT
The outlook for this business remains strong because

demand growth is healthy in India. Sugar prices are
expected to be fairly buoyant over the next couple of
years. The company will achieve significant volume
growth in the next couple of years as the projects under
implementation are completed.
Hariyali Kisaan Bazaar
The pioneering business model of Hariyali Kisaan Bazaar
has now grown to 28 centres as on 31st March, 2006
with operations spread over the five north Indian states
of Punjab, Haryana, Rajasthan, UP and Uttranchal. The
department store format of these bazaar(s) offering
choice, dignity, trust and service brings to the rural
population the convenience and pleasure of modern day
shopping.
Through a team of trained agronomists placed in each
Hariyali Centre, DSCL is attempting to be the bridge for
last mile delivery of appropriate agri-technology to help
the farmers improve his productivity and profitability.
27
Hariyali Kisaan Bazaar, Del Panderva (Dist. Hardoi)
In keeping with the plans enunciated last year, the range

of products and services being offered by Hariyali have
been enhanced from all agri-related goods and services to
include consumer and household goods, automotive and
telecom products so as to offer a much wider range to the
rural customers. Pilot projects have also been started for
banking and credit facilities in association with a leading
bank, and a pharmacy in association with a leading
pharmacy chain. New merchandise will be added in the
coming years based on the demand analysis of the target
customers.
The alliance with an Oil Company has strengthened and
petrol/ diesel operations have been expanded to six
locations. LPG retailing has also been started at several
locations during the year. Both these will be expanded in
the coming years.
Initial forays into seed production and contract farming
as part of the initiatives on the output and crop
management services area are progressing as per plan.
The Hariyali centres have started with an encouraging
response in all the new locations added during the year
and continue to enjoy the support of the rural customers
in the existing locations. The Hariyali brand is beginning
to make an impact in the area of its operations and is
getting established as a trusted source of products and
services with the target customer base.
In the last year, the business has made significant
investment in building the IT platform to create robust
processes and systems by installing the best in class IS
Retail package of SAP. This is supplemented with the
28
POS system RXL from Polaris. The new system is under

the stabilization process and will become fully operational
in the coming year.
The company has now chalked out aggressive plans for
expansion in different areas of the business to maintain its
pioneering position in the business.
Agri-Inputs
Agriculture continues to have a significant role in the
country, i.e. accounting for almost 22% of the GDP. If
India is to record double digit GDP growth the agricultural
sector would need to show significant improvements from
the current levels of productivity. Though the country has
made significant improvements in this field yet much more
can be done to improve the performance of this sector. We
have achieved self sufficiency in food grains but we need
to grow this sector to sustain and improve the productivity
in this sector. Agriculture is still plagued of issues like
fragmented land holdings, slow crop diversification,
imbalanced fertilizer usage, irrigation and low yield.
DSCL is of one of the countrys oldest manufacturers of
urea starting way back in 1969. Being one of the oldest
companies in the agri-sectors it has actively participated in
the development of agri-sector in India in close coordination with the farmers, rural communities, agriresearch institutions and administration. The Shriram
brand is a trusted brand for lakhs of farmers.
The Shriram Krishi Vikas programme pioneered by the
company works in close partnership with the farmers and
rural communities to enhance the earnings of the farmers
and improve rural living standard. The programme has
been continuously evolving in partnership with rural

communities and has over 100 extension counters at
present. This has enabled the company to develop a deep
understanding of the needs of the farmer community in
India.
coming years.
Though DSCL started as a Urea manufacturer, seeing the

farmers preference to source all modern agri inputs from
the same source, we have expanded our offerings over a
period of time to all agri inputs and total agri-solutions. Our
product portfolio comprises of a range of fertilizers like
DAP (Di-ammonium phosphate), MOP (Muriate of
Phosphate), SSP (Single Super phosphate), micro nutrients
and other agri inputs i.e. hybrid Seeds, agri-chemicals,
soluble fertilizers etc. under our Shriram brand.
Cement
Other Businesses
The company believes that it can provide greater value to

the customers by offering a basket of agri-inputs-own and
bought out, along with extensive agronomy inputs to the
farmers.
DSCLs Cement plant is based on waste calcium

hydroxide sludge produced during acetylene generation
from calcium carbide at its integrated manufacturing
plant at Kota. Due to the availability of sludge, the plant is
able to use low-grade limestone which otherwise cannot
be used for cement manufacturing. The capacity of the
cement plant after enhancement of its capacity in
December 2004 is 4.0 lakh tonnes per annum. The plant
produces high quality, premium grade cement both
Ordinary Portland and blended. DSCLs cement plant is
the only one in the country converting waste in to high
quality cement.
Our strategy
Revenues in this business increased to Rs.617 crores an

increase of 30% over last year. The higher margin
products i.e. seeds, pesticides, micro-nutrients, soluble
fertilizers grew at 22% p.a.
Our cement business enjoys the benefit of low cost

captive power, availability of waste sludge and use of
low grade limestone for cement manufacturing. The
production process which is highly automated produces
consistently high quality cement. The cement is
characterized by light colour i.e. high degree of
whiteness, superior strength and setting properties and
thus commands premium price.
The demand for all agricultural inputs is expected to grow

at a healthy rate in line with the countrys need to increase
agri-production and improve the living condition of the
rural population. Greater focus by government authorities
and increased private sector interest and participation
witnessed in recent years would accelerate the overall
demand growth of rural sectors for agri- as well as non-agri
goods. We have been strengthening our product offerings
continuously and also extending the geographical spread
to emerge as an all India agri-inputs solutions provider.
Simultaneously we are tying up long term supply
arrangements for all inputs and strengthening logistics
management. Relationships with farmers are the base for
this business and the company will continue to take
initiatives to strengthen this relationship. The exciting
potential of the sector and our strategy outlined above
would lead to sustained growth in this business in the
Our strategy in this business aims at optimizing the

product mix to high value added grades of cements, and
continuous cost efficiencies.
The production of cement during 2005-06 was 3.93 lakh
tonnes as against 3.21 lakh tonnes achieved during
previous year. The higher production is result of
expansion project completed in December 2004, which
fully stabilized during the financial year 2005-06.
Over the last few years there has been increasing
29
preference of customers towards blended cement and

accordingly the capability of the cement plant has been
improved to produce a higher quantity of blended cement
by installing various equipment and handling systems.
During 2005-06, production of blended cement
accounted for 73% of total production. The cement
business has done well during this year as favourable
demand supply scenario resulted in higher prices.
The cement production is expected to remain at 4.0 lakh
tonnes per annum with the blended cement accounting
for increased proportion. With favourable demand/supply
scenario, the cement business is likely to witness better
prices and margins in the coming years.
Textiles
The company has a small textile operation in the form of
spinning unit at Tonk in Rajasthan. The company took the
following steps to improve its operating efficiencies and
move to higher value products in this business:
Wheeling power from Kota to Tonk thereby reducing

the power costs at the textile unit.
Installation of additional winding and doubling
machines.
Widening the coverage area for buying cotton.
Converting the entire mills production into multiples
and doubles.
All these steps have enabled the company to keep the

losses of this business under control inspite of its uneconomic size and pressure on margins.
Real Estate
In accordance with the decision of the Honourable
Supreme court the company has completed the process
of surrender of part of its land at Shivaji Marg, New Delhi
to DDA to be kept as green and open area. It has made
applications to relevant authorities for permissions to

develop a residential and commercial complex in the
remaining land. The applications are under process.
IT Initiative
The company and its subsidiaries continue to use and
benefit extensively from the SAP package including
Enterprise Resource Planning, Data Warehousing and
Customer Relationship Management solutions. The
extensive communication backbone of the VPN Network
and VSATs helps the organization to meet customers
demands with agility and speed.
In the year gone by, the company has completed the eenablement of Hariyali Kisaan Bazaar. This strategic
initiative was taken up to improve and formalise Hariyalis
operations, and improve customer responsiveness of
Hariyali towards farmers. The objective was to develop
and customize a retail solution that would help us serve the
rural customers better while creating a strong
infrastructure for operations spread over multiple
locations. Project e-STARR (Systems & Technology in Agri
and Rural Retail) was implemented in partnership with two
leading software solution providers, SAP and Polaris.
During the year, your company has initiated the IT
enablement of DSCL Sugar at Loni and Hariawan by
establishing the required communication and IT
infrastructure and roll out of SAP in commercial areas.
With the objective of enhancing productivity amongst
employees your company has initiated the deployment of
employee self service solution from SAP. This would help
in simplifying employee oriented processes and provide
cultural cohesiveness.
Information security has been taken as a key initiative as it
is a major concern for all organizations in the present
context. Firewalls and spam control measures have been
deployed at major locations to improve security.
Information security procedures are being implemented in
a phased manner.
Human Resources initiatives and Industrial

Relations
The Company has, as always, stood by its commitment of
harnessing and developing its people resources in the best
possible manner for achievement of its business goals and
objectives. All through the year the level of people
engagement has been of the highest order, which has
impacted the process of business growth and up gradation
of various systems in a significant way.
HR Initiatives and Growth
The year gone by has been an eventful one with efforts
focused towards meeting the challenges of business
expansion and growth across the organisation. Attracting,
recruiting and selecting, developing and retaining talented
employees has been a thrust area to meet the needs of
growth across various businesses and units. Alongside,
these initiatives in the area of strengthening HR processes
and systems have continued with a view to benchmark
with the best of industry practices and standards. The
process of institutionalizing innovation in the various
businesses and functions has continued which has
stimulated people to realize challenging objectives and
targets and also strengthened team bonding.
Training & Development
The process of training and development has continued
with full commitment and vigour with a view to upgrading
skills and competencies of people. Employees across all
levels including Senior, Top and Middle Management have
been through various developmental programs customized
to meet the individual and organisational needs. The
organisation has continuously worked towards providing
an enabling work environment which encourages people to
acquire newer skills and knowledge so as to make them
more effective, productive and tuned to the environmental
changes.
Industrial Relations
The Organisation has had very harmonious, healthy and
cordial human relations all through the year. The level of

motivation, pride and overall engagement of the
employees has been consistently of a high level, as has
been evident in their contributions towards the
successful accomplishment of the various expansion and
growth projects of the Organisation. Efforts continue to
make the organization a great place to work.
Internal Control Systems and their adequacy
DSCL has designed internal control systems to handle
the requirements of multiple businesses across various
locations. All the systems are centred around SAP R/3
which handles all business transactions-sales order to
cash collections, purchase order to payments, employee
payments, material and assets accounting etc.
Independent and reputed firms carry out internal audit of
all business areas to assess the design and
implementation of all business processes. Observations
made by internal audit are reviewed and discussed by
Audit committee regularly. The management gives lot of
emphasis on continuous up-gradation of business
processes and adherence to the designed system and
processes.
Conclusion
The year under review has been very satisfying; we were
able to implement multiple growth initiatives while
delivering a healthy operating performance. Due to
increase in volumes in all our businesses ( except
fertilizer), we were able to maintain overall operating
margins despite a difficult price environment in the
plastics and chemicals businesses and rising input costs.
The Fenesta and Hariyali operations also performed as
per plan, demonstrating the high growth potential of
these businesses. Our overall performance for the year
under review reflects the robustness of our business
model. With all our planned expansions in Chloro-Vinyl
businesses now completed and our sugar capacity
expected to more than double by the next season, we
expect volume growth in these businesses to continue
going forward. Further we would aggressively grow our
new initiatives Hariyali Kisaan Bazaar and Fenesta
Building System.
Overview of Kota Manufacturing Complex
30
31
09
Corporate Social Responsibility
Your Company, right from its inception, is committed to

society at large beyond factory gates and office portals.
The commitment stems from a sense of responsibility
that recognizes the importance of health & happiness of
fellow human beings in the long-term sustainability of
any human enterprise. This has translated into a mosaic
of meaningful contributions to society across long term
development issues like education, healthcare, family
planning and cultural heritage.
In Delhi, your Company is managing SBM Senior

Secondary School for over 1000 students, which is one of
the best schools in West Delhi. In this school education is
provided at almost free of cost to the students.
Your Company, around its sugar operations in UP, has

invested in Sanskar Pariyojana, an integrated education
programme, in collaboration with the Vinobha Bhave
Trust to inculcate Shiksha (education), Swasth (health),
Safaai (Cleanliness) and Swabhimaan (Self-reliance). The
program with the help of deputed trainers and our
officers has helped uplifting the lives of thousands of
people in the villages around. Now, we are planning to
start a public school for over 1000 students in
collaboration with Ryan International in our sugar
operations area.
In Kota, your Company has instituted scholarship
programmes that encourage students to pursue advance
academic studies. The infrastructure of a number of
schools in the plants vicinities has been strengthened
through the introduction of basic facilities, including safe
drinking water. Your Company has built a school at
Nimoda for students up to class 10.
In Bharuch, your Company has funded a degree college
and has instituted a scholarship programme that touches
several villages around its facility. In another scheme,
meritorious students are awarded every year by way of
fixed deposits that can be encashed after he/she turns
18 or until the date of the students marriage / higher
education.
32
behavioral change in individuals and the society. We

believe that as part of public private partnership efforts
DSCL will put necessary resources to perform our social
obligation in line with National Aids Policy and carry
forward mission of NACO (National Aids Control
Organisation)
Water Management
Education
For the well being of the community at large around its
manufacturing locations, your company continues to
support education activities with a special focus on
protecting the future of the girl child. It has instituted
scholarships in various educational institutions to
encourage meritorious students achieve the best in the
fields of engineering, medicine, agriculture and
management.
Water Harvesting, Kota
Health
Your Company helped equipping the Maharao Bhim Singh
Hospital at Kota with a state-of-the-art intensive care unit
and 6 private wards. The Company encourages and
promotes Family Planning as a national imperative, running
incentive schemes in the villages surrounding its facilities.
Periodic eye check-up camps are also organized across
various cities.
In order to provide medical facilities to the senior citizens in
the vicinity, the Company has donated a mobile care unit
at Kota to Helpage(India) and is also financing its running
expenses on regular basis.
Your Company is countering the shortage of water in arid

terrains near Kota, Rajasthan, through periodic digging of
bore wells, installation of submersible pumps &
construction of water storage tanks. Around DSCL Sugar
Mills, the company has helped in financing more than 650
bore wells. The Company also facilitated supply of drinking
water and animal feed to some of the drought hit villages of
Rajasthan.
Water Harvesting
The rain water harvesting reservoir constructed by the
Company spread over 50 acres at Kota has helped
immensely in ground water recharging and has benefited
the nearby localities. In Bharuch, located in water-starved
Gujarat, the companys sound water collection and
harvesting system holds 20,000 cubic metres that is
effectively deployed at its caustic soda plant.
year, the Company is planning to plant atleast 15,000

trees across various locations.
Infrastructure
Your Company has partnered with the local community
to build more than 50 km stretch of roads benefiting the
entire region in and around its cane-growing areas. The
Company is also partenering with various factories in
Bharuch for building up of Effluent Treatment Plant for
treatment and disposal of industrial effluents.
Others
Your Company has been contributing to relief work
during natural calamities like flood, drought, earthquake,
Tsunami, etc. in terms of man, material and money. Your
Company, responded to earthquake torn Kutch region of
Gujarat and re-built a school there.
Your Company has over 100 Shriram Krishi Vikas
Kendras (SKVKs), which, besides imparting scientific
knowledge to farmers, also address needs of the local
populace by adopting their villages & providing:
Ecological Balance
Your Company has been organizing health camps to create
awareness on diseases like AIDS, Cancer, etc. It is our
belief that at present, the best hope to limit the spread of
HIV-AIDS infection and its human and economic impact is
through behavior modification. Awareness is powerful tool
that has the potential to bring about attitudinal and
The Company understands the need of maintaining right

ecological balance and has therefore planted trees in and
around all its facilities. Over 75,000 tree saplings have
been planted at Bharuch, covering 33 % of the green belt
over the last 10 years.
Approximately 25% of 47 hectares at Bharuch have been
reserved as a green belt for eco-development, marked by
increased tree planting. A continued focus helped the
company achieve a tree survival rate of 95 % over
460,000 in number in the rocky terrain at Kota.
Additionally, 50,000 trees each have been planted at the
sugar locations at Ajbapur and Rupapur. In the current
Need based and location specific transfer of farm

technology
Basic health and hygiene facilities like holding human
and animal health camps, providing of water tanks,
hand pumps to supply potable water in schools,
community places etc.
Training to men & women in villages to create selfreliance for ladies: Training on vocations like sewing,
food preservation, candle making etc for farmers:
Training to initiate subsidiary occupations like
compost making, fish farming, poultry farming, dairy
farming, mushroom cultivation etc.
Thus, your Company understands the responsibility

which it has towards the society-in-general and as in past
will take all necessary steps monetary as well as nonmonetary, to meet its social obligation.
33
34
DCM SHRIRAM
CONSOLIDATED LIMITED
10
Directors Report
The Directors have pleasure in presenting the
17th Annual Report of the Company along with Audited
Accounts for the year ended 31st March, 2006 reporting
a strong performance driven by your Companys strategy
of optimizing value contribution through integration and
creating long term competitive businesses.
Financial Highlights: The working results for the year
ended 31.3.2006 and 31.3.2005 are as under:
31.3.2006
31.3.2005
(Rs. in Crores) (Rs. in Crores)
Sales (Gross)
2,476.32
1,905.19
.....................................................................................................................................................
Other
Income
17.35
9.31
.....................................................................................................................................................
Profit before depreciation,
interest, exceptional
items and tax
283.74
227.10
.....................................................................................................................................................
Interest
48.45
34.21
.....................................................................................................................................................
Gross
Profit
235.29
192.89
.....................................................................................................................................................
Depreciation
70.19
54.36
.....................................................................................................................................................
Exceptional Items
28.59
.....................................................................................................................................................
Provision for Taxation
- Current/Deferred Tax
46.31
5.51
Fringe
Benefit
Tax
3.60
.....................................................................................................................................................
Profit for the year after tax
115.19
104.43
.....................................................................................................................................................
Transfer from Debenture
Redemption Reserve
3.67
2.02
.....................................................................................................................................................
Balance brought forward
from previous year
173.91
118.16
.....................................................................................................................................................
Net Profit available for
appropriation
292.77
224.61
.....................................................................................................................................................
Appropriations
Debenture Redemption
Reserve
0.56
.....................................................................................................................................................
Proposed Dividends on
Equity Shares
14.94
13.31
.....................................................................................................................................................
Corporate
Dividend
Tax
2.09
1.83
.....................................................................................................................................................
General Reserve
50.00
35.00
.....................................................................................................................................................
Balance Carried Forward
225.74
173.91
Dividend: Your Directors are pleased to recommend total
dividend @ 45% (including the interim dividend @ 20%
paid in November, 2005) on Equity Shares of Rs. 2/- each
for the year ended 31st March, 2006.
Performance: The Company attained revenues of Rs.
2476.32 Crores against revenues of Rs. 1905.19 Crores

in previous financial year - a growth of 30%. The operating profit of the Company for the year was at Rs. 283.74
Crores, higher by 25% as compared to operating profit
of Rs. 227.10 Crores in the previous year. The Companys
profit before tax (excluding exceptional items) increased
to Rs. 165.10 Crores from Rs. 138.53 Crores, reflecting
a growth of 19%.
The growth during the year was primarily driven by higher
volumes in Chemicals, Plastics and Sugar businesses,
better margins in Chemical business in first half of the
year and better realisations in Sugar and Cement
businesses. The improvement in performance was despite
tremendous odds faced due to higher input costs (cane,
salt, furnace oil, carbon materials, etc.), sharp reduction
in PVC prices (~16%), freeze on reimbursement of
conversion cost increases in the urea business, unclear
government policy on DAP/MOP subsidy and higher
interest costs.
The detailed performance of various businesses of the
Company for the year ended 31st March, 2006 has been
stated in the Management Discussion and Analysis Report,
which appears as a separate statement in the Annual
Report.
Subsidiary Companies: A statement pursuant to Section
212 of the Companies Act, 1956 relating to Subsidiary
Companies is attached to the accounts.
In terms of approval granted by the Central Government
under Section 212(8) of the Companies Act, 1956, the
Audited Statements of Accounts and the Auditors Reports
thereon for the year ended 31st March, 2006 along with
the Reports of the Board of Directors of the Companys
subsidiaries have not been annexed. The Company will
make available these documents upon request by any
member of the Company interested in obtaining the same.
However, pursuant to Accounting Standard AS-21 issued
by the Institute of Chartered Accountants of India,
Consolidated Financial Statements presented by the
Company includes the financial information of its
subsidiaries.
Sub-Division of Equity Shares & Issue of Bonus Shares:
Pursuant to the resolution passed by the shareholders by
Postal Ballot, the Company had sub-divided the face value
of Equity Shares of Rs.10/- each into 5 Equity Shares of
Rs. 2/- each w.e.f. 18.10.2005.
During the year, the Company has issued and allotted
8,29,51,660 fully paid up Bonus Shares of Rs.2/- each in
the ratio of 1 : 1 by capitalizing amount out of Capital
Redemption Reserve.
35
DSCL 35-51-FINAL.p65
35
7/22/2006, 3:32 AM
DCM SHRIRAM
DCM SHRIRAM
Annexure to the Directors Report

Finance: Your Company continues to enjoy the highest
rating of A1+ for its short term borrowings. Your Company has been upgraded from LA+ rating to LAA rating for its long term debt programme implying the rated
instrument carries low risk.
Fixed Deposits: As on 31.3.2006, 197 deposits aggregating to Rs. 42.07 lacs were unclaimed. Since then 36
deposits amounting to Rs. 8.43 lacs have been claimed/
renewed.
Auditors Report: As reported in para (xxi) of the Annexure to Auditors Report, an employee of the Company in
connivance with parties outside the Company disposed
off certain scrap items at a price significantly less than
the market price. Amount estimated to be short realized
by the Company is approximately Rs. 35 Lacs. The Company has initiated necessary legal and other actions in
the matter.
Delisting of Equity Shares of the Company: During the
year, the Equity Shares of the Company were delisted
from The Calcutta Stock Exchange Association Limited.
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 with the Stock Exchanges form part
of the Annual Report.
Directors: During the year, Shri O.V. Bundellu, Nominee
of IDBI, ceased to be a Director of the Company. The
Directors place on record their sincere appreciation of
the contribution made by Shri O.V. Bundellu, during his
tenure as a Director of the Company.
Shri Vimal Bhandari, Shri Sunil Kant Munjal and
Shri D. Sengupta retire by rotation and are eligible for reappointment.
Auditors: M/s. A.F. Ferguson & Co., Chartered Accountants, retire at the conclusion of the forthcoming Annual
General Meeting and are eligible for re-appointment.
Personnel
The particulars of employees as per Section 217(2A) of
the Companies Act, 1956 form part of this 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 and the Trustee(s) for the holders of the
debentures of the Company, excluding the statement
containing the particulars to be provided under Section
217(2A) of the Act. This statement shall be made available
for inspection by any Member and/or any Trustee(s) during
working hours for a period of 21 days before the date of
the Annual General Meeting. Any Member and/or the
Trustee(s) interested in obtaining a copy of the said

statement may write to the Company Secretary at the
Registered Office of the Company and the same will be
sent by post.
Directors Responsibility Statement: It is hereby affirmed
that
1. in preparation of annual accounts, all applicable
accounting standards have been followed.
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.
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
25th April, 2006
(AJAY S. SHRIRAM)
Chairman & Sr. Managing Director
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:- Installation of an efficient and optimum size pump
in canal water pump house.
- Collection and recycling of steam condensate
from steam traps & drains of 36K, 29K, 14K &
4K steam headers.
- Installation of waste heat recovery boiler in the
new carbide furnace to generate steam from
furnace exhaust gases.
- Installation of variable frequency drives on six
No. motors of ID fans of 30 MVA furnace.
- Reduction in Nos. of Garo Compressor running
from 3 to 2 by replacing the Garo Compressor
internals.
- Condensate heat recovery system (Cigar) for
recovering the waste heat from the condensate
water from all the evaporator bodies and sending
the flash vapour to the succeeding bodies.
- Minimizing the running hours of bigger DM water
pump by impeller trimming of a smaller DM water
pump.
- Stoppage of agitator for brine slurry pit.
- Stoppage of additional process condensate pump
by modification in piping.
- Installation of a low pressure (15 kg./cm2)
hydrogen compressor in place of running
150 kg./cm2 compressor for pipeline supply to
customer.
(b) Additional investments and proposals being
implemented for reduction in consumption of
energy:
- Project for changeover of Ammonia plants
feedstock from Naphtha to R-LNG/NG is under
implementation. This is expected to marginally
improve overall energy consumption and help in
meeting the preset energy norm.
- Change from quadruple system to quintuple
system in sugar plant at Ajbapur.
- Installation of Bagasse Drier and SED CIGAR
System in the process in sugar plant at Rupapur.
(c) Impact of the measures at (a) & (b) above for
36
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 of
production. The summarised position of energy
reduction achieved is as under:- Steam generation of 10 Ton/hour through waste
heat recovery boiler.
- Reduction in power consumption by 170 Kwh/
Ton carbide in 30 MVA furnace.
- Saving in power consumption by approx.
1.63 Kwh/year by stoppage of agitator for brine
slurry pit.
(d) Total energy consumption and energy consumption
per unit of production:
Form A is annexed.
B. TECHNOLOGY ABSORPTION
(e) Efforts made in technology absorption:
Form B is annexed.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(f) Activities relating to exports; initiatives taken to
increase exports; development of new export
markets for products and services; and export
plans:
During the year, interaction was increased with
potential customers in the neighbouring countries
and several enquiries were received. The Company
has exported FRLS, cable grade material to
customers in Sri Lanka. Visits were made to
international buyers in UAE and Oman. PVC orders
were received from Oman and executed
successfully during the year.
The Company has also received approvals for the
PVC master batches from Europe and first shipment
was made against first pilot order. It is expected
to receive regular orders from Europe as the
Company has entered into arrangements with
agents to act as a distributor for Companys PVC
products.
(g) Total foreign exchange used and earned:
Rs./Crores
2005-20062004-2005
- Total foreign exchange used
- Total foreign exchange earned
565.46
332.27
0.60
0.14
37
36-37
7/22/2006, 3:33 AM
DCM SHRIRAM
FORM A
(See Rule 2)
Form for disclosure of particulars with respect to conservation of energy
This Year
2005 2006
This Year
2005 2006
1. Electricity
(a) Purchased
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
772.7
785.7
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
3405.4
3309.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Rate (Rs./Kwh)
4.4
4.2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
(b) Own Generation
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
1872.7
1944.8
4.4
4.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Kwh generated per ltr. of Diesel/Furnance Oil
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Cost (Rs./Kwh)
4.0
3.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
8357.7
6615.1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Kwh generated per Kg. of Coal
1.2
1.2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Cost (Rs./Kwh)
2.2
2.3
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
(iii) Through Steam Turbine Generator (Bagasse)

.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Kwh (in lacs)
736.9
507.5
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Units generated per M.T. of Bagasse
223.3
223.6
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Bagasse consumed (in M.T./lacs)

3.3
2.3
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2. Coal
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Quantity (M.T.)
826317.0
627281.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Total Cost (Rs./lacs)
17721.0
14243.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Average Rate (M.T.)
2145.0
2271.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
3. Furnace Oil
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Quantity (M.T.)
Urea (Kwh/M.T.)
158.5
188.8
PVC Resin (Kwh/M.T.)
3.1
47.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
C. Soda, SFC, Kota (Kwh/M.T.)
132.3
11.6
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
C. Soda, SAC, Bharuch (Kwh/M.T.) Internal Generation
2601.0
2672.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Liquid Chlorine (Kwh/M.T.)
105.0
102.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
HCL (Kwh/M.T.)
3.0
3.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Textiles Yarn (Kwh/Kg.)
2.2
2.2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Sugar Ajbapur (Kwh)
331.0
352.3
Sugar Rupapur (Kwh)
281.6
306.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
PVC Compounds (Kwh/Ton)
213.5
220.2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
2. Coal
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Urea (M.T./M.T.)
0.6
0.6
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
(ii) Through Steam Turbine Generator

Kwh (in lacs)
1. Electricity
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
(i) Through Diesel Generator

Kwh (in lacs)
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Previous Year
2004 2005
B. CONSUMPTION PER UNIT OF PRODUCTION

Previous Year
2004 2005
A. POWER AND FUEL CONSUMPTION
Kwh (in lacs)
DCM SHRIRAM
45277.8
47022.6
6715.0
5095.0
Average Cost (M.T.)
14830.7
10835.2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
PVC Resin (M.T./M.T.)
5.0
4.5
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Carbide Packed (T/Ton)
3.2
2.9
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
C. Soda (M.T./M.T.)
2.2
2.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Cement (M.T./M.T.)
0.2
0.3
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
SBP (M.T./M.T.)
0.2
0.1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
3. Furnace Oil
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Urea (Kg./Ton)
7.2
6.5
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
C. Soda, SFC, Kota (Kg./Ton)
2.5
12.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
C. Soda, SAC, Bharuch (Kg./Ton)
627.0
640.0
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Cement (Kg./Ton)
0.1
0.1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
4. Others
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Steam Caustic Soda (M.T./M.T.) SAC, Bharuch
1.3
1.3
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Bagasse (M.T.) Ajbapur
2.4
2.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Bagasse (M.T.) Rupapur
2.2
2.4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Notes :
1. Different sources of energy are inter changeable.
2. Wherever required, figures relating to previous year have been re-arranged.
38
39
38-39
7/22/2006, 3:33 AM
DCM SHRIRAM
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
Pilot Granulator has been installed and various
grades of NPK blended mixtures have been
produced.
A new innovative overhead gantry type reclaimer
has been designed and installed for coal handling.
The newly installed 30 MVA carbide furnace
incorporating heat recovery from waste heat
recovery boiler (WHB) was completely
conceptualized and designed in house.
Flexible low compression static & dynamic gasket
compound.
Installation of 4 New Card and Speed Frame to
improve quality of yarn.
Adoption of IPRO recommendations on various
steam saving schemes.
Catcher in molasses conditioner vacuum line.
2. Benefits derived as a result of the above R & D
Recovery of heat from waste flue gases of
30 MVA furnace by making it semi closed and
thus generating approx. 10 M.T. steam/hour free
of cost.
Loss of sugar in condenser water reduced.
Collection of sugar dust improved resulting in
better flow of sugar.
Reduction in steam consumption by 8% on cane.
3. Future plan of action
Application areas for high-flow PVC/PVC Blends
in injection molded products.
High abrasion resistant, high strength, anti-skid,
matt finish flooring.
The Company plans to develop UPVC range of
products suitable for high rises and changing
construction practice in India.
4. Expenditure on R & D
Rs./Lacs
2005-2006 2004-2005
a)
Capital
3.16
8.76
...........................................................................................................................................................................................
b) Revenue
201.50
102.56
c) Total
204.66
111.32
...........................................................................................................................................................................................
...........................................................................................................................................................................................
d) Total R & D expenditure

as percentage of
total turnover
0.08
0.06
Technology absorption, adaptation and innovation

1. Efforts, in brief, made towards technology absorption,
adaptation and innovation
Installation of fly ash handling and storage system
and double wave type liners in raw mill to reduce
power consumption.
Commissioning of new energy efficient Chisso
technology based Polymer & Dryer.
Cost reduction innovation project for large volume
cable compounds.
Introduction of lower migration DINCH system as
a plasticizer reduces the risk of chronic toxicity
of DEHP, that is a suspected carcinogen and toxin
to the kidneys, liver & lungs.
Improvement in syrup clarification system and use
of Modular Pan for exhaustion.
2. Benefits derived as a result of the above efforts, e.g.
product improvement, cost reduction, product
development, import substitution, etc.
Various measures described above have resulted in
saving of power and steam. The benefits have also
been in respect of better quality of product and
improved customer service. More importantly, these
have resulted in
Increased production of PPC cement with
increased utilization of fly ash.
Cost reduction in FRLS PVC Compound.
Improvement in syrup quality resulting in
improvement in sugar colour.
Better exhaustion of molasses.
DCM SHRIRAM
3. Details of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) is
furnished as under:
I. Cement Plant
a) Technology Imported
To modify the klin 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
Purchase of bipolar membrane electrolyzer from Asahi Kasei

Chemical Corporation based on their proprietory 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 membrance Cell Plant of 200
TPD capacity.
......................................................................................................................................................................................................................................................................................................................................................................................
b) Year of Import
2004-05
......................................................................................................................................................................................................................................................................................................................................................................................
c)
Has
the
technology
been
fully
absorbed?
Yes
......................................................................................................................................................................................................................................................................................................................................................................................
N.A.
III. Sugar Plant - Rupapur
Bagasse drier
......................................................................................................................................................................................................................................................................................................................................................................................
b) Year of Import
2005-06
......................................................................................................................................................................................................................................................................................................................................................................................
c)
Has
the
technology
been
fully
absorbed?
Yes
......................................................................................................................................................................................................................................................................................................................................................................................
N.A.
IV. PVC Plant
Purchase of polymer based on suspension technology from

Chisso Japan of 100 M3 capacity
......................................................................................................................................................................................................................................................................................................................................................................................
b)
Year
of
Import
2005-06
......................................................................................................................................................................................................................................................................................................................................................................................
c) Has the technology been fully absorbed?
Yes
......................................................................................................................................................................................................................................................................................................................................................................................
N.A.
40
41
40-41
7/22/2006, 3:33 AM
DCM SHRIRAM
DCM SHRIRAM
11
Corporate Governance Report 2005-06

(A) Companys Philosophy
(B) Board of Directors
The Companys philosophy on Corporate Governance

is focused upon a rich legacy of fair, ethical and
transparent governance practices. The Company is
conscious of its responsibility as a good corporate
citizen and is committed to high standard of Corporate
Governance practices. This is reflected in the well
balanced and independent structure of the Companys
eminent and well represented Board of Directors. The
Company is in full compliance with the requirements
under Clause 49 of the Listing Agreement with the
Stock Exchanges.
Name of Director
Category of
Directorship
As at 31.3.2006, the Board of Directors comprises

of an Executive Chairman, three Executive Directors
and eight Non-Executive Directors.
During the year, six Board Meetings were held on
10.5.2005, 14.6.2005, 26.7.2005, 17.8.2005,
27.10.2005 and 28.1.2006.
The composition of Board of Directors and their
attendance at Board Meetings during the year 200506 and at the last Annual General Meeting held on
2.8.2005 as also number of other Directorships and
Committee Membership/Chairmanship as on
31.3.2006 are as follows:
No. of Board
meetings
attended
Attended
No. of other
last AGM Directorships #
No. of Committee
Memberships # #
Member Chairman
Shri
Ajay
S.
Shriram
ED
6
Yes
8
2
1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Vikram S. Shriram
ED
6
Yes
7
4
2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri
Rajiv
Sinha
ED
6
Yes
3
2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri
Ajit
S.
Shriram
ED
6
Yes
5
1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Dr. S.S. Baijal
I-NED
5
Yes
5
5
3
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri
Arun
Bharat
Ram
I-NED
5
No
10
4
1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
I-NED
6
Yes
8
7
4
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Vimal Bhandari
I-NED
5
No
4
2
1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri
Sunil
Kant
Munjal
I-NED
3
Yes
9
2
1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri
D.
Sengupta
I-NED
4
Yes
3
2
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri S.L. Mohan (GIC Nominee)
I-NED
5
No
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri
S.C.
Bhargava
(LIC
Nominee)
I-NED
4
No
10
1
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri O.V. Bundellu (IDBI Nominee)*
I-NED
1
# Excluding Private Limited Companies, Foreign Companies and Companies registered under Section 25 of the Companies Act, 1956.
## Includes only Audit Committee and Shareholders Grievance Committee.
ED
Executive Director
* Ceased w.e.f. 19.5.2005
I-NED
Independent-Non-Executive Director
The ratio between Executive and Non-Executive

Directors and Non-Independent and Independent
Directors is 4:8.
M/s. S.R. Dinodia & Co., Chartered Accountants have
been rendering consultancy services to the Company
from time to time, in which Shri Pradeep Dinodia, a
Non-Executive Director of the Company, is interested
as a Partner. During the year, the Company paid Rs.
1.89 lacs as professional fee to M/s. S.R. Dinodia &
Co.
Code of Conduct for Board Members & Senior

Management Team:
In compliance to the provisions of Clause 49 of the
Listing Agreement, the Board has laid down a Code
of Conduct for all Board Members and Senior
Management Team w.e.f. 1st January, 2006. A copy
of the said Code of Conduct is available on the website
of the Company (www.dscl.com).
All Board Members and Senior Management Team
have affirmed compliance of Code of Conduct as on
31st March, 2006 and a declaration to that effect
signed by Chairman & Senior Managing Director is
attached and forms part of this report.
Name of Member
No. of
meeting
attended
Dr. S.S. Baijal
Chairman
1
.........................................................................................................................................................................................
Shri
Pradeep
Dinodia
Member
1
.........................................................................................................................................................................................
Shri D. Sengupta
Member
1
(D) Committee for Determining Remuneration Payable to

Managing/Whole Time Directors
(i) Terms of reference:
Subject to the provisions of the Companies Act,
1956 and the notifications, if any, issued by the
Government thereunder to determine the
remuneration, including commission, payable to
Managing/Whole-time Directors.
Executive Directors
Salary
P.F.
Status
(iii) Remuneration Policy:

The policy, inter alia, provides for the following:
a) Executive Directors:
Salary and commission not to exceed limits
prescribed under the Companies Act,
1956.
Revision from time to time depending upon
performance of the Company, individual
Directors performance and prevailing
Industry norms.
No sitting fees.
b) Non-Executive Directors:
Eligible for commission.
Sitting fees and commission not to exceed
limits prescribed under the Companies Act,
1956.
The remuneration payable to Non-Executive
Directors is decided by the Board of
Directors.
(iv) Details of remuneration for the year 20052006:
(a) Executive Directors:
(Amount/Rs. Lacs)
* Appointed w.e.f. 28.1.2006

** Ceased w.e.f. 19.5.2005
Superannuation
Perquisites
Commission
Total
Shri Ajay S. Shriram*

45.60
5.47
6.84
40.24
85.00
183.15
Shri
Vikram
S.
Shriram*
42.00
5.04
6.30
18.39
80.00
151.73
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Rajiv Sinha*
31.20
3.74
4.68
19.13
48.00
106.75
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Shri Ajit S. Shriram**
28.80
3.46
4.32
13.38
46.00
95.96
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
* Re-appointed w.e.f. 1.11.2003 for a period of 5 years.
I. Provision for incremental gratuity and earned

leave for the current year has not been
considered, since the provision is based on
actuarial basis for the Company as a whole.
42
(ii) Composition:
The Committee comprises of three IndependentNon-Executive Directors. The Committee met one
time during the year and the attendance of the
Members at the meeting was as follows:
(C) Board Audit Committee

The role and terms of reference of Board Audit
Committee covers areas mentioned under Clause
49 of the Listing Agreement and Section 292A
of the Companies Act, 1956, besides other terms
as may be referred to by the Board of Directors.
(ii) Composition:
The Board Audit Committee was formed in 1990.
As at 31.3.2006, the Committee comprises of four
Independent-Non-Executive Directors. The
Committee met five times during the year and
attendance of the Members at the meetings was
as follows:
Name of Member
Status
No. of
meetings
attended
Dr. S.S. Baijal
Chairman
4
........................................................................................................................................................................................
Member
3
........................................................................................................................................................................................
Member
4
........................................................................................................................................................................................
Shri D. Sengupta*
Member
........................................................................................................................................................................................
Shri O.V. Bundellu
(IDBI Nominee)**
Member
1
** Appointed w.e.f. 2.5.2001 for a period of 5 years.
II. Notice period for termination of appointment

of Managing/Whole-time Directors is six
calendar months, on either side.
III. In the event of termination of appointment of
Managing / Whole-time Directors,
43
42-43
7/22/2006, 3:34 AM
DCM SHRIRAM
compensation will be in accordance with the

provisions of the Companies Act, 1956 or any
statutory
amendment
or
re-enactment thereof.
IV. The Company has not offered any stock option
to its Executive Directors.
(b) Non-Executive Directors:
During the financial year, there was no pecuniary
relationship or transaction between the Company
and any of its Non-Executive Directors.
The criteria for making payments to Non-Executive
Directors is as under:
A. Sitting fee:
@ Rs.10,000/- per Board meeting and
@ Rs. 5,000/- per Board Committee meeting
attended by them.
B. Commission:
i) A sum of Rs. 1.75 lacs each to all NonExecutive Directors as on 31.3.2006,
ii) A sum of Rs. 27,500/- per meeting for
number of Board and Board Committee
meetings attended by them during the
financial year, and
iii) A sum of Rs. 2.5 lacs to the Chairman of
Board Audit Committee.
The details of remuneration paid during the year
by way of sitting fee and commission for attending
meetings of Board/Committees thereof along with
number of shares held by Non-Executive Directors
as on 31.3.2006 in the Company are as under :
Name of the Director
Amount/Rs. Lacs No. of

Sitting Com- Total Shares
Fee mission
held
.......................................................................................................................................................................................
Dr. S.S. Baijal
1.85 13.0514.9050,000
.......................................................................................................................................................................................
0.65
3.95 4.60
.......................................................................................................................................................................................
1.30
7.25 8.55 23,270
Shri Vimal Bhandari
0.50
3.13 3.63 2,000
(E) Shareholders/Investors Grievance Committee

a) to scrutinise and approve registration of
transfer of shares/debentures/warrants issued/
to be issued by the Company,
b) to exercise all powers conferred on the Board
of Directors under Article 43 of the Articles
of Association,
c) to decide all questions and matters that may
arise in regard to transmission of shares/
debentures/warrants issued/to be issued by
the Company,
d) to approve and issue duplicate shares/
debentures/warrants certificates in lieu of
those reported lost,
e) to refer to the Board any proposal of refusal
of registration of transfer of shares/
debentures/warrants for their consideration,
f) to look into shareholders and investors
complaints like transfer of shares, non-receipt
of annual reports, non-receipt of declared
dividends, etc., and
g) to delegate all or any of its powers to Officers/
Authorised Signatories of the Company.
(ii) Composition:
The Committee comprises of two IndependentNon-Executive Directors and two Executive
Directors.
Shri V.P. Agarwal, Company Secretary, is the
Compliance Officer. He has been delegated the
power to approve share transfer/transmission etc.
subject to a limit of 2500 shares of
Rs. 2/- each per transfer deed at a time. The
delegated authority has been regularly addressing
the share transfer formalities.
During the year, the Committee met ten times and
the attendance of the Members was as follows:
.......................................................................................................................................................................................
.......................................................................................................................................................................................
Shri Sunil Kant Munjal
0.30
2.58 2.88
Name
Status
No. of meetings
attended
.......................................................................................................................................................................................
Shri D. Sengupta
1.00
6.15 7.15
.......................................................................................................................................................................................
Shri S.L. Mohan

(GIC Nominee)
0.50
3.13 3.63
.......................................................................................................................................................................................
Shri S.C. Bhargava

(LIC Nominee)
0.40
2.85 3.25
.......................................................................................................................................................................................
Shri O.V. Bundellu

(IDBI Nominee)*
0.15
* Ceased w.e.f. 19.5.2005
0.55 0.70
Shri Pradeep Dinodia Chairman

8
Dr.
S.S.
Baijal
Member
8
.......................................................................................................................................................................................
Shri Ajay S. Shriram
Member
8
.......................................................................................................................................................................................
Shri Vikram S. Shriram Member
8
.......................................................................................................................................................................................
During the year, 355 complaints were received

from the shareholders and all of them were
resolved to the full satisfaction of the shareholders.
No investor complaint was pending as on
31.3.2006.
DCM SHRIRAM
(F) General Body Meetings

The last three Annual General Meetings were held as
under:
Financial Year
Date
Time
Location
2004-2005 02.08.2005 10.00 A.M. Air Force
Auditorium,
Subroto Park,
New Delhi
.......................................................................................................................................................................................
2003-2004 10.08.2004 10.00 A.M. Air Force
Auditorium,
Subroto Park,
New Delhi
.......................................................................................................................................................................................
2002-2003 11.08.2003 10.00 A.M. Air Force
Auditorium,
Subroto Park,
New Delhi
The details of Special Resolutions passed in previous

3 Annual General Meetings are as under :
AGM 2005
Approval under Section 309 of the Companies

Act,1956 for payment of sum not exceeding 1%
per annum of net profits to Non-Executive
Directors for a period of five years commencing
from 1st April, 2005.
AGM 2004

Act, 1956 for maintenance of certain Statutory
records of the Company with M/s. MCS Limited,
Registrar and Transfer Agent at Srivenkatesh
Bhavan, W-40, Okhla Industrial Area,
Phase II, New Delhi 110 020.
AGM 2003

Act,1956 for maintenance of certain
Statutory records of the Company with
M/s. MCS Limited, Registrar and Transfer
Agent at Srivenkatesh Bhavan, 212-A,
Shahpurjat, New Delhi110 049.
Approval for re-appointment of Shri Ajay S.
Shriram as Chairman & Sr. Managing Director
for a period of five years w.e.f. 1.11.2003.
Approval for re-appointment of Shri Vikram S.
Shriram as Vice Chairman & Managing Director
for a period of five years w.e.f. 1.11.2003.
Approval for re-appointment of Shri Rajiv Sinha
as Dy. Managing Director for a period of five years
w.e.f. 1.11.2003.
Approval for delisting of Equity Shares of the
Company from the Delhi Stock Exchange
Association Limited and The Calcutta Stock
Exchange Association Limited.
44
Postal Ballot
During the year, the Special Resolution contained
in the Postal Ballot Notice dated 17th August, 2005,
was passed by the shareholders of the Company
through Postal Ballot.
Shri T.V. Narayanaswamy, Practicing Company
Secretary was appointed as Scrutinizer to conduct
the Postal Ballot process. Details of the voting
pattern were as under:
Description
of Resolution
Sub-Division of
Equity Shares
No. of valid
Votes Cast
Postal Ballot For
Against
Forms
received
4308
10859871 3688
Accordingly the said Resolution was approved by

the shareholders with requisite and overwhelming
majority.
(G) Disclosures
(i) There were no transactions of material nature
with related parties during the year that had
potential conflict with the interest of the Company
at large.
(ii) There were no instances of non-compliance by
the Company, penalties and strictures imposed
on the Company by the Stock Exchanges or SEBI
or any other statutory authority on any matter
related to the capital markets during the last three
years.
(iii) The Company is complying with all mandatory
requirements of Clause 49 of the Listing
Agreement. Non-mandatory requirements relating
to Remuneration Committee have been adopted
by the Company.
(H) Means of Communication
The Company interacts with its shareholders through
multiple forms of corporate and financial
communications such as annual reports, result
announcement and media releases. Quarterly
results are usually published in English daily
newspapers, viz., Economic Times, Business Standard,
Business Line and one Hindi daily newspaper, viz.
Navbharat Times. These results are also made
available on the website of the Company
www.dscl.com and also posted at SEBIs website
www. sebiedifar.nic.in. The Companys website also
displays official news releases. The Company has
interacted with analysts and investors during the year
under review through one on one meeting and the
analyst meet held in Mumbai .
45
44-45
7/22/2006, 3:34 AM
DCM SHRIRAM
(I) General Shareholders Information

(i) Next Annual General Meeting is proposed to be
held on 25th July, 2006 at Air Force Auditorium,
Subroto Park, New Delhi.
(ii) Financial Year : April to March
(iii) Date of book closure: 7 th July, 2006 to
14th July, 2006 (both days inclusive)
(iv) Dividend payment date: Dividend, if
any, declared in the next Annual General
Meeting, will be paid within 30 days of the date
of declaration to those shareholders whose
names appear on the Register of Members on
the date of book closure.
(v) Listing on Stock Exchanges and Stock Codes:
Equity Shares are listed on National Stock
Exchange of India Ltd. (Stock Code
NSE:DCMSRMCONS) and Bombay Stock
Exchange Ltd. (Stock Code BSE:523367).
Under the depository system, the ISIN allotted
to the Companys Equity Shares of face value of
Rs.2/- each is INE499A01024.
(vi) Equity Share Price data for the year 2005-2006:
Equity Share Price on NSE and NIFTY Index
Month
Share Price on NSE
NIFTY Index
High
Low
High
Low
2005
April
488.00 458.00 2084.90 1896.30
.......................................................................................................................................................................................
May
564.00 468.50 2099.35 1898.15
.......................................................................................................................................................................................
June
560.00
506.00 2226.15 2061.35
.......................................................................................................................................................................................
July
762.10
525.00 2332.55 2171.25
.......................................................................................................................................................................................
August
934.90 720.00 2426.65 2294.25
.......................................................................................................................................................................................
September
972.85 820.00 2633.90 2382.90
.......................................................................................................................................................................................
October *
2669.20 2307.45
Before
Sub-division
1068.20 910.00
After
Sub-division
120.00 75.00
.......................................................................................................................................................................................
November
86.50
77.10 2727.05 2366.80
.......................................................................................................................................................................................
December
102.90 81.20 2857.00 2641.95
.......................................................................................................................................................................................
2006
January
120.00 83.90 3005.10 2783.85
.......................................................................................................................................................................................
February
97.85
83.55 3090.30 2928.10
.......................................................................................................................................................................................
March
93.40
71.30 3433.85 3064.00
* Equity Shares of face value of Rs.10/- each were
split into 5 Equity Shares of Rs. 2/- each in
October, 2005.
(vii) Registrar and Share Transfer Agent: M/s. MCS

Limited have been acting as the Registrar and
Share Transfer Agent for shares and debentures
of the Company - both in physical and electronic
mode.
(viii) Share Transfer System: The Companys shares
are traded in the Stock Exchanges compulsorily
in demat mode. Physical shares which are lodged
with the Company for transfer are processed
and returned to the shareholders within a period
of 30 days.
(ix) Distribution of Shareholding as on 31.03.2006:
No. of Shares
DCM SHRIRAM
The Company has not issued any GDRs/ADRs/

warrants or any convertible instruments, which
are pending for conversion.
(xii) Plant Locations:
The Companys plants are located at Kota,
Bharuch, Ajbapur, Rupapur, Tonk and Bhiwadi.
(xiii) Address for Correspondence:
The Companys Registered Office is situated at
6 th Floor, Kanchenjunga Building, 18,
Barakhamba Road, New Delhi-110 001.
Correspondence by the shareholders and
Shareholders holding shares in electronic mode

should address all their correspondence to their
respective Depository Participant.
Shareholders
Number % to total no.
of Shareholders
UPTO
500
46572
86.60
501
- 1000
3477
6.47
......................................................................................................................................................................................
1001
2000
1764
3.28
......................................................................................................................................................................................
2001
3000
640
1.19
......................................................................................................................................................................................
3001
4000
324
0.60
......................................................................................................................................................................................
4001
- 5000
229
0.43
......................................................................................................................................................................................
5001
10000
391
0.73
......................................................................................................................................................................................
10001
AND
ABOVE
379
0.70
......................................................................................................................................................................................
......................................................................................................................................................................................
TOTAL
53776
100.00
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 during the period
January-March, 2006.
(x) Categories of Shareholders as on 31.03.2006:

Category
No of fully
paid up
shares held
%
shareholding
Place : New Delhi

Date : 25th April, 2006
(AJAY S. SHRIRAM)
Promoters, Relatives
and Associates
9,05,08,120 54.55
........................................................................................................................................................................................
Financial Institutions/Banks
2,10,01,301 12.66
........................................................................................................................................................................................
Foreign Institutional
Investors/Overseas
Corporate Bodies/
Non-Resident Indians
2,11,79,534 12.77
........................................................................................................................................................................................
Mutual Funds
57,98,641
3.50
........................................................................................................................................................................................
Bodies
Corporate
45,66,223
2.75
........................................................................................................................................................................................
General Public
2,28,49,501 13.77
........................................................................................................................................................................................
TOTAL
16,59,03,320 100.00
(xi) Dematerialisation of Equity Shares and Liquidity:

As on 31.03.2006, of the total eligible Equity
Shares, 87.44% were in dematerialised form and
the balance 12.56% shares in physical form.
46
debentureholders should be addressed to:

MCS Limited
Srivenkatesh Bhavan,
W-40, Okhla Industrial Area, Phase - II,
New Delhi - 110 020
Tel. Nos. 011-41406149, 41406151-52
Fax No. 011-41709881
E-mail : mcsdel@vsnl.com
47
46-47
7/22/2006, 3:34 AM
DCM SHRIRAM
DCM SHRIRAM
12
Auditors Report
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, 2006 as stipulated in Clause 49 of the Listing Agreement(s) of the said Company with the 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 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 further 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 A.F. FERGUSON & CO.

Chartered Accountants
Place : New Delhi

Date : 25th April, 2006
J.M. SETH
Partner
Membership No.: 17055
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, 2006,
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 Companys 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 (Auditors 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;
48
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 as on March 31, 2006 and taken
on record by the Board of Directors, we report that
none of the directors is disqualified as on March
31, 2006 from being appointed as a director in
terms of clause (g) of sub-section (1) of section
274 of the Companies Act, 1956;
f) 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, 2006;
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 A. F. FERGUSON & CO.
New Delhi
April 25, 2006
J.M. SETH
Partner
49
48-49
7/22/2006, 3:35 AM
DCM SHRIRAM
Auditors Report (Continued)

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, 2006.
(i) (a)
The Company is maintaining proper records
showing full particulars including quantitative
details and situation of fixed assets.
(b) The management has carried out a physical
verification of most of its fixed assets during the
year. In our opinion, the frequency of verification
is reasonable having regard to the size of the
Company and the nature of its fixed assets. The
discrepancies noticed on such verification 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 where
confirmation have been received in most of the
cases. In our opinion, the frequency of verification
is reasonable.
(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. The discrepancies noticed on physical
verification of inventories as compared to book
records were not material and have been properly
dealt with in the books of account.
(iii) (a)
According to the information and explanations
given to us, the Company has not granted any
loans, secured or unsecured to companies, firms
or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b,c,d)
In view of (a) above, paragraphs 4 (iii) (b),(c) and
(d) of the Order are not applicable.
(e)
According to the information and explanations
given to us, the unsecured loan taken by the
Company from companies, firms or other parties
covered in the register maintained under section
301 of the Companies Act, 1956, is by way of
fixed deposit of Rs. 0.07 crore (maximum amount
outstanding during the year Rs. 0.07 crore) from
a director, which is outstanding as at the year end.
(f)
In our opinion, the rate of interest and other terms
and conditions of unsecured loan taken by the
Company are not, prima facie, prejudicial to the
interest of the Company.
(g) During the year, the principal amount for loan taken
and interest thereon are not due for payment.
DCM SHRIRAM
Auditors Report (Continued)

(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 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.
(ix) (a) According to the information and explanations given
to us and the records of the Company examined by
us, the Company has 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

us, there are no disputed dues of wealth tax, customs
duty and cess matters.
According to the information and explanations given
us, the details of disputed dues not paid of excise
duty sales tax, service tax, and income-tax dues
are as follows:
Nature of the
statute
Nature of
the dues
Forum where
pending
Central Excise Law
Excise duty
Appellate authority up
to Commissioners level
Central Excise and
Service Tax Appellate Tribunal
Sales Tax Laws
Amount*
(Rs.Crores)
Amount paid
under protest
(Rs. Crores)
Period to which the

amount relates
2.25
0.05
1995-96, 2001-02,
2003-04, 2004-05
0.11
0.06
1997-98
14.73
0.88
1983-84, 1984-85,
1988-89, 1991-92,
1994-95,1995-96 to 2000-01
1978-79, 1979-80, 1986-87

1990-91, 1991-92, 1992-93,
1995-96
Sales Tax Tribunal
1.52
Service Tax Law
Service tax
Commissioner (Appeal)
0.01
2004-05
Income Tax Act, 1961
Income tax
8.34
2002-03
* amount as per demand orders including interest and penalty wherever indicated in the Order
The following matters, which have been excluded from the

table above, have been decided in favour of the Company
but the department has preferred appeals at higher levels.
The details are given below:
Nature of the statute
Nature of the dues
Income Tax Act, 1961 Income Tax
(x)
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
Forum where pending Amount (Rs. Crores) Period to which the amount relates
High Court
The Company does not have accumulated losses at

the end of the financial year March 31, 2006. Further,
the Company has not incurred any cash losses during
the financial year ended March 31, 2006 and in the
immediately preceding financial year ended March 31,
2005.
(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) The provisions of any special statute as specified under
paragraph 4 (xiii) of the Order are not applicable to the
Company.
(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
50
Sales tax
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 the information and explanations given
to us and on an overall examination of the balance
7.57
1996-97, 1997-98
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) We have been informed by the Company that one of
its employees in connivance with parties outside the
Company disposed off certain scrap items at a price
significantly less than the market price. Amount
estimated to be short realized by the Company
approximately Rs. 0.35 crore. As explained to us, the
Company has initiated necessary legal actions in the
matter.
New Delhi
April 25, 2006
J.M. SETH
Partner
51
50-51
7/22/2006, 3:35 AM
DCM SHRIRAM
Balance Sheet
Profit and Loss Account
as at March 31, 2006
Schedule
As at
March 31, 2006
Rs. Crores
Shareholders funds
1
2
Loan Funds
33.34
488.02
16.75
425.49
521.36
442.24
743.61
323.28
468.06
226.51
1066.89
147.00
694.57
96.16
1735.25
1232.97
1421.23
416.34
1040.71
352.77
1004.89
237.48
687.94
151.76
1242.37
34.49
839.70
56.37
440.58
416.97
32.59
140.13
304.00
303.61
25.50
96.61
1030.27
729.72
513.35
58.53
571.88
458.39
337.11
55.71
392.82
336.90
1735.25
1232.97
Secured
Unsecured
Deferred tax liabilities (net)
Total funds employed

Application of Funds
Fixed assets
Gross block
Less: Depreciation
Net block
Capital work-in-progress
Investments
Current assets, loans and advances

Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Less: Current liabilities and provisions
Current liabilities
Provisions
Net current assets
Total funds utilised
Notes to the accounts
13
Per our report attached

J.M. SETH
Partner
Membership No.:17055
V.P. AGARWAL
Company Secretary
New Delhi
April 25, 2006
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
Schedule
Income
Sale of products (Gross)
Less: Excise duty
Sale of products (Net)
Income from services and other income
Year ended
March 31, 2006
Rs. Crores
Year ended
March 31, 2005
Rs. Crores
2476.32
143.75
2332.57
17.35
2349.92
1905.19
105.05
1800.14
9.31
1809.45
1339.97
726.21
1132.32
450.03
283.74
39.49
8.96
235.29
70.19
165.10
165.10
46.31
3.60
115.19
3.67
173.91
292.77
227.10
29.38
4.83
192.89
54.36
138.53
28.59
109.94
5.51
104.43
2.02
118.16
224.61
6.64
8.30
2.09
50.00
4.19
9.12
1.83
0.56
35.00
225.74
173.91
6.94
6.27
Expenditure
Manufacturing and other expenses
10
Purchases for resale
Profit for the year before depreciation, interest,
exceptional items and tax
Interest - on debentures and other fixed loan
- others
Profit for the year before depreciation, exceptional items and tax
Depreciation
Profit for the year before exceptional items and tax
Exceptional items
11
Profit for the year before tax
Provision for taxation - current/deferred tax
12
- fringe benefit tax
Profit after tax
Transfer from debenture redemption reserve
Balance brought forward from the previous year
Profit available for appropriation
Appropriations
Proposed dividends
Equity shares
- Interim
- Final
Corporate dividend tax
Debenture redemption reserve
General reserve
Balance carried to balance sheet
Earnings per share - basic/diluted (Rs.)
(Refer note 5 in Schedule 13)
Notes to the accounts
Per our report attached to the balance sheet
J.M. SETH
Partner
New Delhi
April 25, 2006
52
for the year ended March 31, 2006
As at
March 31, 2005
Rs. Crores
Sources of Funds
Share capital
Reserves and surplus
DCM SHRIRAM
V.P. AGARWAL
Company Secretary
13
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
53
52-53
7/22/2006, 3:36 AM
DCM SHRIRAM
Cash Flow Statement
Schedules to the Accounts
for the year ended March 31, 2006
Year ended
Year ended
March 31, 2006
March 31, 2005
Rs. Crores
Rs. Crores Rs. Crores
Rs. Crores
A. Cash flow from operating activities
Net profit before tax
Adjustments for:
Depreciation
Provision for contingencies
(Profit)/Loss on sale of fixed assets
Cost of Land Surrendered pursuant to order of the Honble Supreme Court
(Net of Rs. 1.08 crores transfer from revaluation reserve)
Lease rentals expense
Profit on sale of non-trade current investments
Profit on sale of non-trade long term investments
Finance Charges
Interest expense
Less: interest and dividend income
Operating profit before working capital changes
Adjustments for:
Trade and other receivables(net)
Inventories
Trade and other payables
Cash generated from operations
Income taxes (paid)/refund (net)
Net cash from operating activities
165.10
54.36
11.96
5.25
3.14
0.11
(0.08)
(1.42)
2.48
44.64
276.79
34.21
(3.46)
B. Cash flow from investing activities

Purchase of fixed assets
Sale of fixed assets
Purchase of trade long term investments
Purchase of non-trade current investments
Sale of non-trade current investments
Sale of non-trade long term investments
Advances to subsidiary companies received back
Inter corporate deposits received back
Interest received
Dividend received
Net cash used in investing activities
(486.20)
14.56
(3.57)
(1422.01)
1447.09
1.87
1.05
1.81
2.01
(443.39)
(244.63)
1.83
(1084.43)
1060.38
1.72
0.50
2.27
1.19
(261.17)
C. Cash flow from financing activities

Proceeds from borrowings
Repayment of borrowings
Finance charges
Changes in working capital borrowings
Repayment of finance lease liabilities
Dividends paid
Corporate dividend tax paid
Interest paid
2947.12
(2613.96)
(2.48)
39.61
(0.31)
(15.76)
(2.21)
(46.44)
1147.49
(871.93)
(1.35)
(39.61)
(0.63)
(10.89)
(1.41)
(32.93)
J.M. SETH
Partner
V.P. AGARWAL
Company Secretary
New Delhi
April 25, 2006
305.57
7.13
41.09
1.89
32.16
Subscribed
16,59,03,320 (2004-2005 - 1,65,90,332) Equity shares
of Rs. 2 (2004-2005 - Rs. 10) each fully called-up
Add: Forfeited shares - Amount originally paid-up
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
65.01
115.00
65.01
115.00
33.96
17.37
33.18
0.16
33.34
16.59
0.16
16.75
16.75
1.
In accordance with the resolutions passed by shareholders through postal ballot on September 30, 2005,
- Equity shares of the face value of Rs. 10 each were divided into 5 equity shares of Rs. 2 each, and
- 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.
Of the issued, subscribed and paid-up capital, 2,87,75,380 (2004-2005 - 57,55,076) equity shares of Rs. 2 (2004-2005 - Rs. 10) 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.
2.
RESERVES AND SURPLUS
Capital redemption reserve

Share premium account
General reserve
Profit and loss account
$
#
##
As at
March 31, 2005
Rs. Crores
Additions
Rs. Crores
25.00
62.76
15.50
148.32
173.91
50.00
51.83
425.49
101.83
Deductions
Rs. Crores
As at
March 31, 2006
Rs. Crores
16.59 $
3.67 #
19.04 ##
-
8.41
62.76
11.83
179.28
225.74
39.30
488.02
Issue of Bonus shares during the year.

Transfer to profit and loss account on redemption.
Refer note 14 in Schedule 13.
54
49.99
NOTES:
25.03
AJAY S. SHRIRAM
49.99
33.34
42.98
VIKRAM S. SHRIRAM
As at
March 31, 2005
Rs. Crores
Issued
16,98,03,320 (2004-2005 - 1,73,70,332) Equity shares
of Rs. 2 (2004-2005 - Rs. 10) each
188.74
(17.95)
25.03
As at
March 31, 2006
Rs. Crores
65,01,000 (2004-2005 - 65,01,000) Cumulative

redeemable preference shares of Rs. 100 each
30.75
217.16
(128.71)
(92.98)
82.80
78.27
(23.79)
54.48
Per our report attached to the balance sheet

SHARE CAPITAL
Authorised
24,99,50,000 (2004-2005 - 4,99,90,000) Equity shares
of Rs. 2 (2004-2005 - Rs. 10) each
0.46
(0.05)
1.35
(155.23)
(136.58)
180.75
165.73
(20.78)
144.95
Net cash from financing activities

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents as at opening
Cash and cheques in hand and balance with banks
Cash and bank balances (net) acquired/transferred
in pursuance to the Scheme of Arrangement
Cash and cash equivalents as at closing
Cash and cheques in hand and balance with banks
1.
109.94
70.19
0.13
(4.36)
-
48.45
(3.81)
DCM SHRIRAM
55
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7/22/2006, 3:36 AM
DCM SHRIRAM
Schedules to the Accounts (Continued)

3.
DCM SHRIRAM
Loan funds
2.
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
23.67
31.00
40.90
485.47
193.57
743.61
1.29
284.70
151.07
468.06
11.29
25.77
0.09
12.92
24.52
0.34
177.60
108.50
0.03
153.50
35.00
0.23
323.28
226.51
1066.89
Secured
Debentures
Loans from banks
On cash credit account
Others
Other loans
Short term working capital borrowings from Banks:

i)
3.
Loans from Banks and Others:

(i)
Term loans of Rs. 49.34 crores (2004-2005 - Rs. 71.15 crores) from banks and term loans of Rs. 12.00 crores (20042005- Rs. 23.95 crores) from others are secured by pari-passu first mortgage/charge, created on all immovable and
movable assets, both present and future, (save and except book debts), subject to prior charges created/to be created
in favour of the Companys bankers on the stocks of raw materials, semi-finished and finished goods and consumable
stores for working capital borrowings and a term loan of Rs. 20.00 crores (2004-2005 - Rs. Nil) from a bank is secured
by way of second mortgage/charge, created/to be created on all immovable and movable fixed assets, both present and
future, pertaining to the Companys undertakings at District Bharuch, Gujarat (Rs.19.97 crores due within a year; 20042005 - Rs. 26.75 crores).
(ii)
694.57
Term loans of Rs. 128.48 crores (2004-2005 - Rs. 154.22 crores) from banks and term loans of Rs. 27.00 crores
(2004-2005 - Rs. 36.80 crores) from others are secured by way of first mortgage/charge, created ranking pari-passu on
all immovable and movable assets, both present and future, (save and except book debts), term loan of Rs. 133.86
crores (2004-2005 - Rs. 65.61 crores) from others are secured by way of first mortgage/charge, created ranking paripassu on all immovable and movable assets, both present and future, subject to charges created or to be created in
favour of the Companys bankers on the stocks of raw materials, semi-finished and finished goods and consumable
stores for working capital borrowings, and term loans of Rs. 50.00 crores (2004-2005 - Rs. Nil) from banks are secured
by way of second mortgage/charge, created/to be created on all immovable and movable fixed assets, both present and
future of the Companys undertakings at Kota, Rajasthan (Rs.18.67 crores due within a year; 2004-2005 - Rs. 25.61
crores).
Debentures detailed below are secured by English first mortgage on the Companys property at Taluka Kalol, District
Gandhinagar, Gujarat and first equitable mortgage/charge on immovable/movable properties, both present and future, of
the Companys undertakings at Kota, Rajasthan, subject to charges created/to be created in favour of the Companys
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:
(iii) Term loan of Rs. 7.33 crores (2004-2005 - Rs. 9.33 crores) from a bank is secured by way of first mortgage/charge,
ranking pari-passu, on all immovable/movable assets, both present and future, pertaining to the Companys Ajbapur
Sugar Complex and Rupapur Sugar Complex, Uttar Pradesh, subject to charges created/to be created in favour of
Companys bankers on the stocks of raw materials, semi finished goods, finished goods and consumable stores for
securing working capital borrowings (Rs. 2.00 crores due within a year, 2004-2005 - Rs. 2.00 crores).
a)
15,00,000 (2004-2005 - 15,00,000) 8.5% Secured redeemable non-convertible debentures of

Rs. 100 each redeemable in three equal annual instalments commencing from November 1, 2005. The first instalment has been paid during the year (Rs. 5.00 crores due within a year, 2004-2005 - Rs. 5.00 crores).
b)
5,00,000 (2004-2005 - 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 (Rs. 1.67 crores due within a
year, 2004-2005 - Rs. Nil).
(iv) Term loan of Rs. 84.71 crores (2004-2005 - Rs. 50.00 crores) from banks are secured by way of first mortgage/charge,
ranking pari-passu, on all immovable/movable assets, both present and future and term loan of Rs. 9.71 crores (20042005 - Rs. 9.71 crores) from others is secured by way of a exclusive second charge on all immovable/movable assets
(save and except book debts) subject to charges created/to be created in favour of the Companys bankers on the
stocks of raw materials, semi-finished goods, finished goods and consumable stores for securing working capital borrowings both present and future, pertaining to the Companys Ajbapur Sugar Complex, Uttar Pradesh (Rs.Nil due within
a year, 2004-2005 - Rs. Nil).
Unsecured
Deposits
Fixed
Others
Interest accrued and due on deposits
Short term loans and advances
Banks
Others
Finance lease liability*
Represents present value of minimum lease payments. Also refer note 10 in Schedule 13.
1.
Debentures:
Secured
i)
ii)
Loans from banks on cash credit account of Rs. 40.90 crores (2004-2005- Rs. 1.29 crores) are secured by first charge
by way of hypothecation of stocks/stores and book debts of the Companys undertaking at Kota and Tonk in Rajasthan,
Ajbapur and Rupapur in Uttar Pradesh and Bharuch in Gujarat. These loans are further secured/to be secured by a third
charge by way of mortgage/hypothecation of all the immovable/movable properties (other than current assets) of the
Companys undertakings at Kota in Rajasthan and Ajbapur in Uttar Pradesh and second charge by way of mortgage/
hypothecation of all the immovable/movable properties (other than current assets) of the Companys undertakings at
Rupapur in Uttar Pradesh.
Debentures detailed below are secured by English first mortgage on the Companys property at Taluka Kalol, District
Gandhinagar, Gujarat and first equitable mortgage/charge on immovable/movable properties both present and future, of
the Companys undertaking at District Bharuch, Gujarat (save and except book debts) subject to charges created/to be
created in favour of the Companys 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)
6,00,000 (2004-2005 - 6,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each redeemable in three equal annual instalments commencing from November 1, 2005. The first instalment has been
paid during the year (Rs. 2.00 crores due within a year, 2004-2005 - Rs. 2.00 crores).
b)
1,00,000 (2004-2005 - 1,00,000) 11% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in three equal annual instalments commencing from November 1, 2005. The first instalment has been
paid during the year (Rs. 0.33 crore due within a year, 2004-2005 - Rs. 0.33 crore).
c)
4,00,000 (2004-2005 - 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 (Rs. 1.33 crores due within a
year, 2004-2005 - Rs. Nil).
(v)
Term loan of Rs. 11.00 crores (2004-2005 - Rs. 15.00 crores) from others is secured by way of subservient mortgage/
charge, created/to be created on 9 MW power plants at Ajbapur Sugar Complex and 6MW power plant at Rupapur
Sugar Complex of the Company (Rs. 4.00 crores due within a year, 2004-2005 - Rs. 4.00 crores).
(vi) Term loan of Rs. 89.24 crores (2004-2005 - Rs. Nil) from a bank is secured by way of first mortgage/charge created/to
be created on all immovable/movable assets, both present and future, subject to charges created/to be created in favour
of Companys bankers on the stocks of raw materials, semi-finished goods, finished goods and consumable stores for
securing working capital borrowings, pertaining to the Companys Loni Sugar Complex, Uttar Pradesh (Rs. Nil due within
a year, 2004-2005 - Rs. Nil).
(vii) Term loan of Rs. 22.71 crores (2004-2005 - Rs. Nil) from a bank is secured by way of first mortgage/charge created/to
be created on all immovable/movable assets, both present and future, subject to charges created/to be created in favour
of Companys bankers on the stocks of raw materials, semi-finished goods, finished goods and consumable stores for
securing working capital borrowings, pertaining to the Companys Hariawan Sugar Complex, Uttar Pradesh (Rs. Nil due
within a year, 2004-2005 - Rs. Nil).
(viii) Term loan of Rs. 33.66 crores (2004-2005 - Rs. Nil) from a bank is secured by way of first mortgage/charge created/to
be created on all immovable/movable fixed assets, both present and future pertaining to the Companys Rupapur Sugar
Complex, Uttar Pradesh (Rs. Nil due within a year, 2004-2005 - Rs. Nil).
56
57
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7/22/2006, 3:36 AM
DCM SHRIRAM
DCM SHRIRAM
4.
6.
DEFERRED TAX LIABILITIES AND ASSETS

As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
155.54
4.79
5.68
122.48
4.79
5.59
166.01
132.86
12.45
2.21
-*
4.35
19.01
147.00
11.22
2.10
19.04
4.34
36.70
96.16
Deferred tax liabilities

Depreciation
Compensation payable to employees
Others
Deferred tax assets

Provision for gratuity and leave encashment
Provision for doubtful debts and advances
Unabsorbed capital loss
Others
* refer note 14 in Schedule 13
5.
FIXED ASSETS
GROSS BLOCK
Description
As at
March 31,
2005
Rs. Crores
Additions
Rs. Crores
DEPRECIATION
Deductions
Rs. Crores
As at
March 31,
2006
Rs. Crores
Up to
March 31,
2005
Rs. Crores
NET BLOCK
For
the year
Deductions
Rs. Crores
Rs. Crores
Up to
As at
As at
March 31, March 31, March 31,
2006
2006
2005
Rs. Crores Rs. Crores Rs. Crores
Owned assets
Land
32.72
14.84
0.01
Buildings
94.25
20.15
347.08 ***
47.55 *
114.40 **
47.55
32.72
12.53
2.63
15.16
99.24
81.72
Plant and machinery
856.38
15.13
1188.33 $
316.02
59.98
5.70
370.30 $
818.03
540.36
Furniture and fittings
19.48
3.62
0.86
22.24
11.80
2.32
0.56
13.56
8.68
7.68
Vehicles
12.25
5.65
0.93
16.97
4.54
2.64
0.48
6.70
10.27
7.71
Intangibles
Technical know-how
Brand
16.71
6.11
22.82
5.75
1.99
7.74
15.08
10.96
8.22
8.22
1.68
0.69
2.37
5.85
6.54
0.25
Assets on finance lease

Vehicles
0.70
0.45
0.06
0.51
0.19
This year
1040.71
397.45
16.93
1421.23
352.77
70.31
6.74
416.34
1004.89
221.03 ##
25.84
1040.71
303.65
63.69 ##
14.57
352.77
Previous year
845.52
(including capital advances)
0.70 $$
687.94
237.48
151.76
1242.37
839.70
- Includes Rs. 0.09 crore (2004-2005 - Rs. 2.04 crores) pertaining to land situated at Rupapur pending registration in favour of the Company.
- Includes Rs. 2.15 crores (2004-2005 - Rs. 2.15 crores) being value of land jointly held and possessed in equal proportion with M/s Irama Estates Limited,
Calcutta,pursuant to the Agreement between the parties.
** Includes Rs. 1.15 crores (2004-2005 - Rs. 1.15 crores) pertaining to a flat situated at Mumbai, pending registration in favour of the Company.
*** Includes addition of Rs. 2.48 crores (2004-2005 - Rs. 3.42 crores) on account of foreign exchange fluctuation.
$
Includes Rs. 0.79 crore (2004-2005 - Rs. 9.01 crores) in respect of certain plant and machinery retired from active use and held for disposal.
$$ Refer note 10 (a) and (b) in Schedule 13.
#
Includes Rs. 0.12 crore transfer to capital work in progress, in respect of Sugar Projects.
## Includes Rs. 39.19 crores addition in Gross Block and Rs. 9.33 crores addition in depreciation relating to Merger of erstwhile Shriram PolyTech Limited.
INVESTMENTS
Long Term
(valued at cost unless there is permanent fall in value thereof)
Trade Investments
Unquoted
7,95,009 (2004-2005 - 7,22,735) Equity shares of Rs. 10 each
fully paid-up of Bharuch Eco Aqua Infrastructure Limited. 72,274
shares allotted during the year.
35,00,000 (2004-2005 - Nil) Equity shares of Rs. 10 each fully
paid-up shares of Forum I Aviation Limited, allotted during the year.
Non-trade Investments
Government securities
Unquoted
National savings certificates
Investment in Shares, Units, etc.
Quoted
Nil (2004-2005 - 26,500) Equity shares of Rs. 10 each fully
paid-up of The ICICI Bank Limited. 26,500 Shares sold
during the year.
Nil (2004-2005 - 3,16,510) Units of Rs. 10 each fully paid-up
of Kotak Mahindra Mutual Fund (K Bond-wholesale plan).
3,16,510 Units sold during the year.
83,115 (2004-2005 - 83,115) 6.75% Bonds of Rs. 100 each
fully paid-up of Unit Trust of India.
fully paid-up of SRF Polymer Limited.
Investment in Subsidiaries
Unquoted
fully paid-up of DCM Shriram Credit and Investments Limited.
fully paid-up of DCM Shriram Aqua Foods Limited.
fully paid-up of Shriram Bioseed Genetics India Limited.
fully paid-up of DSCL Energy Services Company Limited.
11,74,551 (2004-2005 - 11,74,551) Equity shares of US $ 1 each
fully paid-up of Bioseeds Limited.
58
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
0.79
0.72
3.50
0.01
0.01
0.12
0.33
0.83
0.83
0.22
0.22
4.22
4.22
8.78
8.78
1.73
1.73
14.41
14.41
59
58-59
7/22/2006, 3:37 AM
DCM SHRIRAM
DCM SHRIRAM
6.
7.
INVESTMENTS (Continued)
As at
March 31, 2006
Rs. Crores
20.00
Nil (2004-2005 - 50,00,000) Units of Rs. 10 each

fully paid-up of JM Mutual Fund. 50,00,000
Units sold during the year.
5.00
34.49
0.83
33.66
5.85
56.37
1.28
55.09
3.85
- Quoted
- Unquoted
Aggregate market value - Quoted
7.
As at
March 31, 2005
Rs. Crores
Current
Non-trade, Unquoted
Nil (2004-2005 - 1,99,69,669) Units of Rs. 10 each
fully paid-up of JM Financial Mutual Fund. 1,99,69,669
Units sold during the year.
Total
Aggregate book value
Current Assets
Inventories
Stores and spares*
Stock-in-trade**
Raw materials
Process stocks
Finished goods
Sundry debtors
Debts over six months
Secured
- considered
Unsecured - considered
- considered
Other debts
Secured
- considered
As at
March 31, 2005
Rs. Crores
57.92
54.39
31.81
8.61
342.24
440.58
29.30
7.98
212.33
304.00
good
good
Less: Provision for doubtful debts
0.02
50.65
6.21
0.01
25.35
6.23
1.14
365.16
423.18
6.21
416.97
0.56
277.69
309.84
6.23
303.61
As at
March 31, 2005
Rs. Crores
0.90
3.34
1.67
0.68
27.68
0.67
32.59
22.31
0.84
25.50
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
Considered doubtful
Less: Provision for doubtful advances
88.98
0.38
0.38
63.27
0.03
0.03
Deposits
Balances with customs, excise etc.
Tax payments (net of provision for current tax and FBT)
MAT credit entitlement
Interest accrued on investments and deposits
88.98
11.96
30.16
7.39
1.49
0.15
63.27
9.80
17.17
6.21
0.16
140.13
96.61
1030.27
729.72
* Stores and spares are valued at cost or under.

**Stock-in-trade is valued at cost or net realisable value, whichever is lower.
# Includes Rs. 0.43 crore (2004-2005 - Rs. 0.47 crore) provided as margin for bank guarantees and letters of credit.
$ Refer note 7 of Schedule 13.
8.
good
good
doubtful
As at
March 31, 2006
Rs. Crores
Cash on hand
Cheques in hand
With scheduled banks on
Current account
Deposit account#
CURRENT ASSETS, LOANS AND ADVANCES

As at
March 31, 2006
Rs. Crores
CURRENT ASSETS, LOANS AND ADVANCES (Continued)
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities
Sundry creditors#
Total outstanding dues of small scale
industrial undertakings*
Total outstanding dues of creditors other
than small scale industrial undertakings
Ex-gratia payable under voluntary retirement schemes**
Interest accrued but not due on loans
60
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
1.04
1.33
502.96
1.81
7.54
328.47
2.03
5.28
513.35
337.11
61
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7/22/2006, 3:37 AM
DCM SHRIRAM
DCM SHRIRAM
8.
10. MANUFACTURING AND OTHER EXPENSES (Continued)
CURRENT LIABILITIES AND PROVISIONS (Continued)
Provisions
Gratuity
Leave encashment
Proposed dividend
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
28.87
8.11
12.09
8.30
1.16
58.53
571.88
26.38
6.97
11.96
9.12
1.28
55.71
392.82
# Sundry creditors do not include any amounts outstanding as on March 31, 2006 which are required to be credited to Investor Education and
Protection Fund.
* Refer note 6 in Schedule 13.
** Rs. 0.23 crore (2004-2005 - Rs. 0.28 crore) due within a year.
9.
INCOME FROM SERVICES AND OTHER INCOME
Income from services

Other Income
Dividend income (gross) from:
- non-trade, long term investments
- non-trade, current investments
Profit on sale of fixed assets
Interest income #
Rent
Liabilities/provisions no longer required written back
Miscellaneous
Less: Cost of own manufactured goods capitalised

Year ended
March 31, 2006
Rs. Crores
Year ended
March 31, 2005
Rs. Crores
0.06
0.16
0.01
2.00
1.42
0.08
4.36
1.80
0.03
0.51
7.08
17.35
0.03
1.16
0.05
2.27
0.04
0.47
5.13
9.31
# Income-tax deducted at source Rs. 0.28 crore (2004-2005 - Rs. 0.37 crore).
10. MANUFACTURING AND OTHER EXPENSES
Raw materials consumed

Stores, spares and components
Power, fuel, etc.
Repairs
Buildings
Plant and machinery
Salaries, wages, bonus, gratuity, commission, etc.
Provident and other funds
Welfare
Rent
Insurance
Donation
Rates and taxes
Auditors remuneration
Audit fee
Tax audit
Other services
Out-of-pocket expenses
Directors fees
Bad debts and advances written-off
Freight and transport
Commission to selling agents
Brokerage, discounts (other than trade discounts), etc.
Selling expenses
Exchange fluctuation
Loss on sale/write off of fixed assets
Increase/(decrease) in excise duty on finished goods
Miscellaneous expenses
Year ended
March 31, 2006
Rs. Crores
770.72
98.23
289.40
Year ended
March 31, 2005
Rs. Crores
600.40
83.44
238.02
3.07
19.65
104.16
10.83
6.57
5.04
5.61
0.41
1.23
3.03
20.43
87.91
8.99
5.07
4.42
4.46
0.73
0.67
0.35
0.04
0.30
0.03
(Increase)/decrease in stocks of finished goods and process stocks

Closing stocks
Less: Stock transferred from Shriram PolyTech Limited
pursuant to Scheme of Arrangement
Year ended
March 31, 2005
Rs. Crores
0.30
0.03
0.06
0.46
1.02
57.27
0.64
1.03
18.45
4.19
5.25
4.32
45.77
1196.69
-
1470.51
1196.69
350.85
220.31
3.64
350.85
220.31
(130.54)
1339.97
Less: Opening stocks
216.67
152.30
(64.37)
1132.32
11. Exceptional items

Year ended
March 31, 2006
Rs. Crores
Cane price differential arising consequent to the Honble
Supreme Court Order dated May 5, 2004 for sugar seasons
1996-1997, 2002-2003 and 2003-2004
Cost of land surrendered on March 7, 2005 pursuant to the
Order of the Honble Supreme Court
Less: Transfer from Revaluation Reserve
Year ended
March 31, 2005
Rs. Crores
13.49
4.22
1.08
3.14
11.96
28.59
12. Current/deferred tax

Year ended
March 31, 2006
Rs. Crores
Current Tax
Less: MAT credit entitlement
Add: Current tax of earlier year
Deferred Tax
62
Year ended
March 31, 2006
Rs. Crores
0.35
0.02
0.07
0.15
0.41
75.62
0.67
1.11
18.20
9.90
(2.19)
0.13
53.06
1472.81
(2.30)
14.55
(1.49)
1.45
14.51
31.80
46.31
Year ended
March 31, 2005
Rs. Crores
20.23
(14.72)
5.51
63
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7/22/2006, 3:37 AM
DCM SHRIRAM

13. NOTES TO THE ACCOUNTS
1. Significant accounting policies
(i) Accounting convention
The financial statements are prepared under the historical cost convention as modified to include the
revaluation of land of one of the units of the Company. 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
a. Owned assets
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 on straight line basis 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.
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.
(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 where the foreign currency liabilities
have been incurred in connection with fixed assets acquired up to March 31, 2004 and subsequent thereto
in case of fixed assets acquired from a country outside India, where the exchange differences are adjusted in
the carrying amount of concerned 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 where the
foreign currency liabilities have been incurred in connection with fixed assets acquired up to March 31, 2004
and subsequent thereto in case of fixed assets acquired from a country outside India, where the exchange
differences are adjusted in the carrying amount of concerned fixed assets.
In respect of derivative contracts, gain/losses are recognised on actual settlement of respective contracts.
DCM SHRIRAM

(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)
Retirement and other benefits
The Company has the following retirement schemes.
- Superannuation fund for officers.
- Provident fund for all employees.
The contributions to the above funds are charged to revenue each year.
Provisions for gratuity and leave encashment determined on an actuarial basis at the end of the year are charged
to revenue every 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, being the difference
between taxable income and accounting income that originate in one period and are capable of reversal in one or
more subsequent periods.
2. (i) Contingent liabilities not provided for:

Claims* (excluding claims by employees where amount not
ascertainable) not acknowledged as debts:
Sales tax matters
Excise matters
Additional premium on land
Others
Total
Previous Year
Rs. Crores
13.30
2.40
8.11
6.61
30.42
2.83
2.84
8.11
7.11
20.89
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)
224.81
122.75
(iii) Guarantees given to financial institutions,
banks and other parties in respect of loans
availed by subsidiaries and other parties:
Amount guaranteed
1.85
17.60
Amount of loans outstanding
0.46
10.04
64
This Year
Rs. Crores
65
64-65
7/22/2006, 3:37 AM
DCM SHRIRAM
DCM SHRIRAM
3. In accordance with past practice, the Company has taken revenue credits aggregating Rs. 47.58 crores (20042005 - Rs. 107.05 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. 28.62 crores (2004-2005 Rs. 6.21 crores) for subsidy claims relating to Di-Ammonium Phosphate and Muriate of Potash 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.
D. Information about business segments
4. Segment reporting
Rs. Crores
PARTICULARS
Fertiliser
This Previous
Year
Year
1.
2.
A. Business segments:
Based on the guiding principles given in Accounting Standard AS-17 Segment Reporting issued by the
Institute of Chartered Accountants of India, the Companys business segments include: Fertilisers
(manufacturing of urea), Plastics (manufacturing of poly-vinyl chloride and carbide), Chemicals (manufacturing
of chlor alkali products), Traded Products (trading of di-ammonium phosphate, muriate of potash, super
phosphate, other fertilisers, seeds, pesticides and plaster of paris), Sugar (manufacturing of sugar products),
Others (textiles, agri retail business, manufacturing of cement, compounds and UPVC window systems).
Plastics
Chemicals
This Previous
Year
Year
This Previous
Year
Year
Traded Products
This Previous
Year
Year
Sugar
Others
This Previous
Year
Year
Elimination
This Previous
Year
Year
Since the Companys 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:
External sales
Inter segment sales
600.44
536.14
246.49
Total revenue
24.85
600.54
237.00
263.34
536.14
271.34
388.35
237.00
263.87
162.05
Segment results
Unallocated expenses
(net of income)
21.27
18.89
3.89
72.34
49.83
(11.12)
(15.94)
245.73
Operating profit
21.27
18.89
32.18
29.31
3.89
72.34
49.83
(11.12)
(15.94)
213.55
172.74
Interest expense
48.45
34.21
Income taxes - Current/deferred tax
46.31
5.51
- Fringe benefit tax
3.60
115.19
133.02
0.10
237.69
257.99
0.16
19.76
617.68
474.32
388.13
12.31
360.24
0.06
19.32
250.00
379.62
277.91
617.68
474.32
34.38
62.94
128.87
82.44
(0.01)
34.38
62.94
128.87
82.44
(0.01)
0.22
162.05
0.53
Exceptional items
(45.02)
(32.07)
(45.02)
(32.07) 2476.38 1905.35
202.05
28.59
115.19
104.43
3.
OTHER INFORMATION
A.
ASSETS
Segment assets
Unallocated assets
283.13
285.81
301.00
163.51
378.70
337.49
338.87
130.11
643.07
387.96
277.98
219.30
2222.75 1524.18
84.38 101.61
Total assets
283.13
285.81
301.00
163.51
378.70
337.49
338.87
130.11
643.07
387.96
277.98
219.30
2307.13 1625.79
45.95
35.47
25.09
21.25
26.50
27.17
317.74
181.50
76.18
64.78
29.63
22.03
521.09
521.36
1066.89
197.79
45.95
35.47
25.09
21.25
26.50
27.17
317.74
181.50
76.18
64.78
29.63
22.03
2307.13 1625.79
14.56
10.10
12.03
10.34
123.38
10.98
74.54
5.44
61.06
25.57
106.27
21.10
0.10
0.04
0.02
0.03
243.23
11.35
32.24
8.89
37.47
10.80
35.31
7.37
0.04
0.88
5.26
0.40
0.18
0.08
3.26
B.
LIABILITIES
Segment liabilities
Share capital and reserves
Secured and unsecured loans
Unallocated liabilities
Total liabilities
Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other
segment revenue and expenses are directly attributable to the segments.
2476.32 1905.19
0.06
0.16
RESULTS
Profit before exceptional items
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:
This Previous
Year
Year
REVENUE
Net profit
B. Geographical segments:
This Previous
Year
Year
Total
C.
OTHERS
Capital expenditure
Depreciation
Non cash expenses
other than depreciation
352.20
442.24
694.57
136.78
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.
5. Earnings per share

Profit after tax as per profit and loss account (Rs. Crores)
Weighted average number of equity shares outstanding *
Basic and diluted earnings per share in rupees
(face value - Rs. 2 per share)
Previous year
104.43
16,65,44,416
6.94
6.27
*The equity shares of the face value of Rs. 10 each were sub-divided into five equity shares of Rs. 2 each with effect from October 18,
2005. Further, the Company has allotted bonus shares in the ratio of 1:1 on October 19, 2005. In accordance with the requirements of
Accounting Standard (AS) - 20 Earnings per share issued by the Institute of Chartered Accountants of India, earning per share for
previous year has been restated based on weighted average number of equity shares after considering the enhanced equity share capital
post share split and bonus issue.
6. Sundry creditors include Rs. 1.04 crores (2004-2005 - Rs. 1.33 crores) due to suppliers covered under the
Interest on Delayed Payment to Small Scale and Ancillary Industrial Undertakings Act, 1993, to the extent
such parties have been identified from the available information. The Company has not received any claim for
interest from any supplier under the said Act.
The names of Small Scale Industrial Undertakings to whom the Company owes amounts outstanding for more
than 30 days as at March 31, 2006 are Scientific Devices (Bombay) Pvt Ltd., Tempsens Instruments (India)
Pvt. Ltd., Engineers and Engineers (Elect) Pvt. Ltd., M/s Concept Engineering & Consultancy, M/s Wirelinks, M/
s Silicon India Chemicals, Devi Hitech Engineers Pvt. Ltd., Jihns Electric Company Pvt. Ltd., M/s Techno
66
This year
115.19
16,59,03,320
67
66-67
7/22/2006, 3:38 AM
DCM SHRIRAM
Industries, M/s HI- Tech Engineers, M/s Mangla Rubber Industries, M/s Puri Industries, M/s Premchand Industry,
M/s Saharanpur Engineering Works, M/s Garga Engineering Works, M/s Centifugal System, M/s Universal
Heavy Engineering Company, M/s Difec India, M/s Standard Auto General Engineers, M/s Material Conveying
Engineers, Maya Machinery Pvt. Ltd., M/s Hi- Tech Rubber Products, Sidhi Polychem Pvt. Ltd.
7. Loans and advances include following amounts due from subsidiaries:
Amount outstanding
as at year end
Name of the party
1.
2.
3.
4.
5.
This year Previous year

(Rs. Crores) (Rs. Crores)
11.01
12.23
0.24
0.06
0.04
0.28
0.37
Shriram PolyTech Limited *

DCM Shriram Credit and Investments Limited
Shriram Bioseed Genetics India Limited
DCM Shriram Aqua Foods Limited
DSCL Energy Services Company Limited
Total
11.59
Maximum amount
outstanding during
the year
(Rs. Crores) (Rs. Crores)
16.67
33.51
31.91
5.77
5.97
0.06
0.04
0.59
2.44
12.64
* Subsidiary up to September 30, 2004.

8. Amount of borrowing costs capitalised to fixed assets during the year Rs. 11.91 crores (2004-2005 - Rs. 1.03
Crores).
9. Related party disclosures under Accounting Standard AS-18 Related Party Disclosures issued by the Institute
of Chartered Accountants of India:
A. Name of related party and nature of related party relationship
Subsidiaries: Shriram PolyTech Ltd.#, DCM Shriram Credit and Investments Limited, DCM Shriram Aqua
Foods Limited, DSCL Energy Services Company Limited, DCM Shriram International Limited, DCM Shriram
Infrastructure Limited, Bioseed Research Philippines, Inc., Bioseed Research Vietnam, Bioseed Genetics
Vietnam, Bioseed Research India Private Limited, Bioseeds Limited and Shriram Bioseed Genetics India
Limited.
Key Managerial Persons, their relatives and HUFs: Mr. Ajay S. Shriram, Mr. Vikram S. Shriram, Mr. Rajiv
Sinha, Mr. Ajit S. Shriram, Mr. Aditya A. Shriram (relative of Mr. Ajay S. Shriram), Mrs. Divya Sinha
(relative of Mr. Rajiv Sinha), M/s. Ajay S. Shriram (HUF), M/s. Vikram S. Shriram (HUF).
# Subsidiary up to September 30, 2004
B. Transactions with related parties referred to in note 9A above
Rs. Crores
TYPE OF TRANSACTIONS
Sale of finished and other goods
Interest recovered
Expenses recovered
Purchases of finished goods
Interest paid on leased assets
Rent paid
Remuneration paid (* Rs. 40,000)
Security deposits given
Lease rental paid
Loans and advances (net)
Conversion of advance into equity
Expenses paid
Assets purchased
Balance outstanding as at the year end
Security deposits/indemnity
Fixed deposits
Loans and advances
Liability for leased assets
Lease rent paid in advance
Guarantees given
Shriram PolyTech
Ltd.
DCM Shriram
Credit and
Investments Ltd.
This
Year
Previous
Year
This
Year
Previous
Year
12.18
0.33
0.55
1.04
1.08
DSCL Energy
Services Co.
Ltd.
This
Year
1.76
0.02
Previous
Year
1.23
Shriram Bioseed
Genetics
India Ltd.
DCM Shriram
Aqua
Foods Ltd.
This
Year
This
Year
1.84
14.67
Previous
Year
Previous
Year
Key managerial
personnel and
their relatives
This
Year
Previous
Year
1.32
10.09
0.06
0.55
*
0.46
Total
This
Year
1.04
3.60
14.67
0.02
0.55
*
0.35
1.54
0.13
(1.69)
0.68
(3.57)
0.06
(0.09)
0.09
1.73
0.02
0.13
(1.76)
0.04
0.16
0.04
0.07
11.01
0.03
0.02
12.23
0.23
0.07
0.16
0.04
5.14
0.07
Note: Details of remuneration to whole time directors are given in note 11 below.
0.28
DCM SHRIRAM
0.37
0.24
(0.93)
10.00
0.06
0.04
5.18
0.06
5.14
0.07
11.59
0.03
0.02
Previous
Year
12.18
1.41
3.10
10.09
0.06
0.46
0.35
0.68
(1.90)
1.73
0.06
0.07
5.18
0.06
11.71
0.23
0.07
10.00
10. a. Assets taken on finance lease before April 1, 2001 by the Company includes motor vehicles and office
equipments at an aggregate cost of Rs. Nil (2004-2005 - Rs. 1.60 crores) with future obligations by way
of lease rentals amounting to Rs. Nil (2004-2005 - Rs. 0.17 crore).
b. Disclosure in respect of assets taken on lease on or after April 1, 2001 under Accounting Standard AS-19
Leases issued by the Institute of Chartered Accountants of India.
(i) General description of the finance lease:
The Company has entered into finance lease arrangement for vehicles. 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
Later than one
Not later than
year but not later
Total
one year
than five years
Total of minimum lease
payments at the balance
sheet date
Less: Future finance charges
(* Rs. 1680)
(** Rs. 1731)
Present value of minimum
lease payments at the
balance sheet date
0.03
0.26
0.03
0.23
0.03
0.03
0.03
**
0.03
0.23
0.03
0.20
0.03
11. Managerial remuneration

Managerial remuneration of Rs. 5.81 crores (2004-2005 - Rs. 4.99 crores) includes commission payable to
managing directors Rs. 2.59 crores (2004-2005 - Rs. 2.23 crores) and non-working directors Rs. 0.43 crore
(2004-2005 - Rs. 0.36 crore).
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
Previous year
Rs. Crores
Rs. Crores
Profit for the year before tax, per profit and loss account
Add: Managerial remuneration including commission
Directors sitting fees
Cost of land surrendered on March 7, 2005 pursuant to the
Order of the Honble Supreme Court
Less: (i) Profit on sale of non-trade current investments
(ii) Profit on sale of non-trade long term investments
(iii) Profit on sale of land
Net profit in accordance with section 198 of the Companies Act, 1956
Maximum remuneration to managing directors @ 10% of the net profit
Restricted to
Maximum remuneration @ 1% of net profit to non-working directors
Restricted to
68
165.10
5.81
0.07
109.94
4.99
0.06
170.98
0.08
1.42
0.13
169.35
16.94
5.38
1.69
0.43
3.14
118.13
0.05
118.08
11.81
4.63
1.18
0.36
69
68-69
7/22/2006, 3:38 AM
DCM SHRIRAM
12. Current investment purchased and sold during the year:

The details of current investments purchased and sold during the year are as follows:
The following matters, which have been excluded from the table above, have been decided in favour of the
Company but the department has preferred appeals at higher levels. The details are given below:
Current Investment (Mutual fund units) purchased and sold during the year 2005-06
S. Name of the Fund
No.
Face value
Purchased Units*
Sold Units
Nos.
Amount
Nos.
Crores
Rs. Crores
Crores
Rs.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
DCM SHRIRAM
Deutsche Insta Cash Plus Fund - Institutional Plan - Daily Dividend option
Tata Liquid Super High Investment Fund - Daily Dividend
Reliance Liquidity Fund - Daily Dividend Reinvestment Option
Prudential ICICI Liquid Plan - Institutional Plus- Daily Dividend Option
UTI Liquid Cash Plan - Institutional - Daily Income Option
UTI Liquid Cash Plan - Regular - Daily Income Option ( # 9872.81 units)
Birla Cash Plus - Institutional - Premium - Daily Dividend - Reinvestment
HSBC Cash Fund - Institutional Plus- Daily Dividend
Kotak Liquid (Institutional Premium) - Daily Dividend
Principal Cash Management Fund - Liquid Option - Institutional Plan Dividend Reinvestment - Daily
Principal Cash Management Fund -Liquid Option -Institutional Premium PlanDividend Reinvestment - Daily
HDFC Cash Management Fund - Savings Plan - Daily Dividend Reinvestment
LIC Mutual Fund Liquid Fund - Dividend Plan
Chola Liquid Institutional Dividend Reinvestment Plan
DSP Merrill Lynch Liquidity Fund - Daily - Regular - Dividend
Ing Vysya Liquid Fund - Super Institutional - Daily Dividend Option
Magnum Institutional Income - Savings - Dividend
JM High Liquidity Fund - Super Institutional Plan - Daily Dividend
JM High Liquidity Fund - Premium Plan - Daily Dividend
JM Floater Fund - Short Term Plan - Dividend Option
Grindlays Cash Fund - Super Institutional Plan C - Daily Dividend
10
1000
10
10
1000
1000
10
10
10
7.05
0.06
0.78
13.19
0.08
#
3.29
0.65
5.28
70.66
62.08
7.83
156.27
86.28
1.00
32.99
6.52
64.61
7.05
0.06
0.78
13.19
0.08
#
3.29
0.65
5.28
10
0.07
0.70
0.07
10
10
10
10
1000
10
10
10
10
10
10
16.76
0.38
17.79
0.50
0.09
3.00
15.64
14.88
4.18
2.39
7.21
167.58
4.00
194.62
5.00
88.00
30.03
156.90
149.01
41.81
24.06
72.06
16.76
0.38
17.79
0.50
0.09
3.00
15.64
14.88
4.18
2.39
7.21
Total
1,422.01
Nature of the
statute
Nature of
the dues
Forum where
pending
Amount
Rs. Crores
Period to which the

amount relates
Income Tax Act, 1961
Income Tax
High Court
7.57
1996-97, 1997-98
14. Consequent to issue of Accounting Standard Interpretation 4 (Revised) - Losses under the head Capital
Gains issued by the Institute of Chartered Accountants of India, deferred tax assets aggregating Rs. 19.04
crores relating to unabsorbed capital losses as on March 31, 2005 has been charged to the general reserve.
15. Provision for contingencies aggregating to Rs. 12.09 crores (2004-2005 - Rs. 11.96 crores) in Schedule 8
represents the maximum possible exposure on ultimate settlement of issues relating to reconstruction
arrangement of the companies.
16. Research and development expenses included under relevant heads in the profit and loss account Rs. 2.02
crores (2004-2005 - Rs. 1.03 crores).
17. Category wise quantitative data about Derivative Instruments:
Nature of
Derivative
Number of deals
Purpose
Amount
USD Crores
Amout in Rs. Crores
This
Year
Previous
Year
This
Year
Previous
Year
This
Year
Previous
Year
This
Year
Previous
Year
US Dollar
Interest rate
swap
Hedging
2.10
93.40
Overnight
Index swap
Hedging
45.00
Currency swap
Conversion of
Indian Rupee
in to US
Dollars
Conversion
of Indian
Rupee in to
US Dollars
0.56
0.53
25.00
23.73
Options
Hedging
2.00
89.24
* includes dividend units
Foreign Currency exposures that are not hedged by derivative instruments or otherwise is as follows:
13. There are no disputed dues of wealth tax, customs duty and cess matters. The details of disputed Excise duty,
Sales-tax, Service tax and Income-tax dues as on March 31, 2006 are as follows:
Nature of the
statute
Nature of
the dues
Forum where
pending
Central Excise Law
Excise duty
Central Excise and
Service Tax Appellate Tribunal
Amount*
Rs. Crores
Amount paid
under protest
2.25
0.05
0.06
1997-98.
14.73
0.88
1983-84, 1984-85,
1988-89, 1991-92, 1994-95
1995-96 to 2000-01, 2002-03.
Sales Tax Tribunal
1.52
1978-79, 1979-80, 1986-87

1990-91, 1991-92, 1992-93,
1995-96.
Service tax
0.01
2004-05.
Income Tax Act, 1961 Income tax
8.34
2002-03
Service Tax Law
Sales tax
Loans
Sundry Creditors
0.11
Sales Tax Laws
Amount in foreign
currency (Crores)
Period to which the

amount relates
1995-96, 2001-02, 2003-04,
2004-05.
This year
Particulars
1.50
243.61
0.11
0.01
0.01
Previous Year
Amount in
Rs. Crores
Amount in foreign
currency (Crores)
Amount in
Rs. Crores
66.93
92.18
4.78
0.27
0.95
1.68 USD
3.10 USD
-
73.42
135.53
-
USD
JPY
USD
EURO
GBP
18. Previous years figures have been recast, wherever necessary.

19. Schedules 1 to 13 and the statement of additional information form an integral part of the financial statements.
* amount as per demand orders including interest and penalty wherever indicated in the Order.
70
71
70-71
7/22/2006, 3:38 AM
DCM SHRIRAM
DCM SHRIRAM
Statement of Additional Information
2. Particulars of stocks and sales (Continued)
1. Particulars of capacity and production
Description
Stocks
Capacity
Description
Unit
Licensed*
2005-06
Production
Installed
2004-05
2004-05
198000
330000
112000
61250
176250
116750
73250
1565
9900
400000
8880
14000
90000
23400
198000
330000
56100
33000
132500
80250
69750
1565
9900
400000
8880
11000
36000
23400
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
M.T.
Nos.
M.T.
2005-06
2004-05
381300
15160**
47481
149344
92448
38670
508
8506
393627
1994
179452
42357
11254
379000
10328**
39001
111805
66146
30074
370
7460
320745
1838
151486
10367
4002
Super Phosphate
Zinc Sulphate
Traded Urea
P.O.P
Cement
Yarn
Sugar
Molasses
UPVC Windows
* Delicensed/Not applicable
** Production of Marketable Calcium Carbide only
*** Crushing of sugarcane
PVC Compounds
Other sales/stocks and adjustments
2. Particulars of stocks and sales
Total
Stocks
Description
Unit
Urea
Rs.
PVC Resins
Rs.
Caustic Soda
Rs.
Chlorine
Rs.
Hydrochloric Acid(100%)
Rs.
Sodium Hypochlorite(10%)
* Rs.
Compressed Hydrogen
Rs.
Stable Bleaching Powder
Rs.
Marketable Calcium Carbide
Rs.
D.A.P.
Rs.
M.O.P.
Rs.
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
M.T.
Crores
Opening
2005-06
10
0.01
413
0.55
146
0.07
25
0.01
93
0.01
8
0.01
14527
13.94
2004-05
28
0.02
913
0.95
352
0.22
71
0.04
23
16
0.01
47
0.04
23222
15.10
Closing
2005-06
2310
3.56
533
0.72
117
0.05
72
0.04
49
35
0.02
317
0.77
2451
2.90
116888
126.96
2004-05
10
0.01
413
0.55
146
0.07
25
0.01
93
0.01
8
0.01
14527
13.94
Sales
2005-06
378837
600.44
41901
198.78
147880
272.61
88523
68.67
4599
2.38
8247
2.11
508
4.53
8479
9.17
14843
41.70
172781
252.38
217573
237.90
2004-05
378994
536.09
36712
206.20
111494
186.30
62904
56.27
3639
2.61
8459
2.05
370
3.13
7452
7.55
10328
30.67
65467
93.10
271834
267.31
Closing
Sales
2005-06
2004-05
2005-06
2004-05
2005-06
2004-05
M.T.
Rs. Crores
M.T.
Rs. Crores
M.T.
Rs. Crores
M.T.
* Rs. Crores
M.T.
Rs. Crores
M.T.
Rs. Crores
M.T.
Rs. Crores
M.T.
Rs. Crores
Nos.
* Rs. Crores
M.T.
Rs. Crores
Rs. Crores
44
0.01
85
0.13
20
3988
0.70
65
0.45
126820
166.28
39473
17.97
1787
0.46
412
2.79
8.94
2224
0.61
20
0.03
54
0.01
7615
1.16
40
0.40
99810
117.93
29430
5.89
2
6.12
6860
2.14
273
0.49
1402
0.68
92
0.01
3448
0.61
34
0.25
111764
166.78
44629.97
13.01
410
0.70
369
2.37
20.18
44
0.01
85
0.13
20
3988
0.70
65
0.45
126820
166.28
39473
17.97
1787
0.46
412
2.79
8.94
148326
44.28
4735
8.76
16100
8.01
14650
4.57
383855
101.76
2021
15.58
194509
346.51
100882
31.85
41933
22.69
11280
69.12
132.52
135477
38.39
3942
5.72
13206
3.78
324204
83.74
1813
16.45
124475
202.96
65757
26.23
8008
4.71
4031
27.39
104.54
Rs. Crores
212.33
148.53
342.24
212.33
2476.32
1905.19
Rs. Lacs
Rs. Lacs
Rs. Lacs
0.68
0.21
46.20
0.21
0.55
0.16
0.17
1.17
69.79
0.68
0.21
46.20
* Amount in Rs. Lacs for above products

Sodium Hypochlorite(10%)
P.O.P
UPVC Windows
3A. Particulars of raw materials consumed

Description
Naphtha
Lime and lime stone
Hard coke/SLV/Pearl/Nut coke/Met coke/Pet coke
Charcoal
Salt
Electrode paste
Hydrated Lime
Gypsum
Lime stone
Kapas, cotton, synthetic yarn etc.
Sugarcane
PVC Resin
Plasticizers
Other miscellaneous raw materials
Total
2005-06
Quantity
Value
M.T.
Rs. Crores
167312
121017
29539
42469
240536
1379
6116
25579
358685
2320
1825230
272
2828
407.78
16.64
19.95
30.01
17.54
2.25
1.60
1.90
7.60
9.75
228.09
1.19
14.65
11.77
770.72
72
Opening
Unit
2005-06
Ammonia
M.T. per year
Urea
M.T. per year
Calcium Carbide
M.T. per year
PVC Resins
M.T. per year
Caustic Soda
M.T. per year
Chlorine
M.T. per year
Hydrochloric Acid(100%)
M.T. per year
Compressed Hydrogen
M.T. per year
Stable Bleaching Powder
M.T. per year
Cement
M.T. per year
Yarn
Spindles Nos.
Sugar
M.T. per day***
UPVC Windows
Nos. per year
PVC Compounds
M.T. per year
Unit
2004-05
Quantity
Value
M.T.
Rs. Crores
166501
144671
36420
29041
180565
1054
5454
16668
288091
2123
1513155
115
928
336.73
8.14
21.11
18.98
10.05
1.67
1.39
1.07
5.35
11.35
176.62
0.75
4.80
2.39
600.40
73
72-73
7/22/2006, 3:39 AM
DCM SHRIRAM
DCM SHRIRAM
NOTES :
3B. Particulars of goods purchased for resale

2005-06
Description
Quantity
D.A.P.
M.O.P.
Zinc Sulphate
Super Phosphate
Traded Urea
P.O.P.
Others
174476
319888
4890
154938
16958
14726
M.T.
2004-05
Value
Rs. Crores
231.48
321.62
8.40
42.49
8.13
1.74
112.35
Total
Quantity
M.T.
Value
Rs. Crores
65436
263198
4007
133298
13172
726.21
87.25
234.76
5.44
34.52
1.42
86.64
1.
2.
3.
4.
5.
6.
450.03
7.
8.
4.
Other Additional Information
Description
(a)
(b)
(c)
2005-06
Rs. Crores
Value of imported/indigenous
raw materials, spare parts, components and stores consumed
(i) Raw materials
Imported
Indigenous
(ii) Spare parts, components and stores
Imported
Indigenous
2004-05
Rs. Crore
Signatures to Schedules 1 to 13 and Statement of Additional Information.
Value of imports on CIF basis

Raw materials
Components and spare parts
Capital goods
Expenditure in foreign currency on cash basis
Travelling
Technical know-how
Interest
Consultation fees
Others
Earnings in foreign exchange on cash basis
Direct export of goods on FOB basis/
as per contracts where FOB value not readily ascertainable
3.74
8.05
35.52
0.59
10.38
47.49
0.98
0.36
3.68
0.62
0.64
1.04
0.57
0.18
1.04
2.91
0.61
0.14
2005-06
(d)
The Licences acquired from undivided DCM Limited, pursuant to the Scheme of Arrangement, are pending
endorsement in the name of the Company.
Installed capacity is as certified by officials of the Company and relied upon by the auditors, being a technical matter.
The figures of production, sales, opening/closing stocks of caustic soda consist of liquid and flakes, both.
The figures of production, sales, opening/closing stocks of chlorine consist of liquid chlorine and chlorine
gas, both.
The sales quantities are net of samples/shortages.
Where one class of goods is used in the manufacture of another, consumption of materials has been arrived
at after deducting internal transfers.
Production details in respect of a class of goods captively consumed have not been indicated.
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.
V.P. AGARWAL
Company Secretary
New Delhi
April 25, 2006
AJAY S. SHRIRAM
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
2004-05
Rs. Crores
Rs. Crores
3.77
766.95
0.49
99.51
0.50
599.90
0.08
99.92
770.72
100.00
600.40
100.00
8.00
90.23
98.23
8.14
91.86
100.00
9.93
73.51
83.44
11.90
88.10
100.00
74
VIKRAM S. SHRIRAM
75
74-75
7/22/2006, 3:39 AM
DCM SHRIRAM
Balance Sheet Abstract and Companys General Business Profile
I.
DCM SHRIRAM
Section 212
Statement Pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Companies
Registration Details
Registration No.
Balance Sheet date
4
-
9
0
2
3
State Code
3
-
1
1.
II. Capital raised during the year (Amount in Rs. Thousands)
Name of the Subsidiary
DCM Shriram Credit

and Investments Limited
DCM Shriram Aqua

Foods Limited
DCM Shriram International

Limited
DSCL Energy Services

Company Limited
Shriram Bioseed Genetics

India Limited
2.
Financial year of the Subsidiary
31st March, 2006
31st March, 2006
31st March, 2006
31st March, 2006
31st March, 2006
3.
Holding Companys interest as

on 31.3.2006.
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.
Holder(s) of 50,007
Capital of 50,007 shares by
DCM Shriram Credit and
Investments Ltd., another
subsidiary of the Company.
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.
each out of total issued
and subscribed Equity Share
Sources of Funds
4.
Net aggregate amount of the Subsidiarys profits/(losses) so far as they concern members of Holding Company and not dealt with in the Holding Companys accounts:
Paid-up Capital
i)
For Subsidiarys financial year

ended 31st March, 2006.
ii)
For Subsidiarys previous financial

years since it became Subsidiary.
5.
Net aggregate amount of the Subsidiarys profits/(losses) so far as they concern members of Holding Company and dealt with in the Holding Companys accounts:
i)

Nil
Nil
Nil
Nil
Nil
ii)

Nil
Nil
Nil
Nil
Nil
Public Issue
Rights Issue
-
Private Placement
N
I
Bonus Issue
1
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)

Total Liabilities
1 7 3 5 2 4 6 4
Total Assets
1 7 3 5
Deferred Tax Liabilities (net)

1 4 7 0
Reserves and Surplus

4 8 8 0 1
Unsecured Loans
3 2 3 2
Secured Loans
7
9
2
4
1
Rs. 1.346 crore
(Rs. 0.04 crore)
(Rs. 0.0008 crore)
Rs. 0.1182 crore
Rs. 0.366 crore
(Rs. 4.849 crores)
(Rs. 4.73 crores)
(Rs. 0.0201 crore)
(Rs. 0.0041 crore)
Rs. 1.273 crores
Net Fixed Assets
1 2
10
11
Investments
3 4
1.
Net Current Assets

4 5
Misc. Expenditure
N
2.
Financial year of the Subsidiary
3.
Holding Companys interest as

on 31.3.2006
4.
Net aggregate amount of the Subsidiarys profits/(losses) so far as they concern members of Holding Company and not dealt with in the Holding Companys accounts:
i)

ii)

5.
Net aggregate amount of the Subsidiarys profits/(losses) so far as they concern members of Holding Company and dealt with in the Holding Companys accounts:
i)

Nil
Nil
Nil
Nil
Nil
Nil
ii)

Nil
Nil
Nil
Nil
Nil
Nil
Accumulated Losses
-
IV. Performance of Company (Amount in Rs. Thousands)

Turnover
2 3 4 9 9 2 4 8
Total Expenditure
2
+ - Profit/Loss Before Tax

+
1 6 5 0 9 6 3
(Please tick Appropriate box + for Profit, - for Loss)
++
Profit/Loss After Tax

1 1 5 1 8
Earning Per Share in Rs.
Dividend rate %
6
.
9 4
4 5
V. Generic Names of Three Principle Products/Services of Company (as per monetary terms)
Item Code No. (ITC Code)
Product Description
1

Product Description
Product Description
J.M. SETH
Partner
V.P. AGARWAL
Company Secretary
New Delhi
April 25, 2006
Name of the Subsidiary
Bioseeds
Limited
Bioseed Genetics
Vietnam
Bioseed
Research
Vietnam
Bioseed
Research
Philippines, Inc.
31st March, 2006
31st March, 2006
31st March, 2006
31st March, 2006
31st March, 2006
31st March, 2006
Holder(s) of 50,000
and subscribed
Equity Share Capital
of 50,007 shares by
DCM Shriram Credit
and Investments Ltd.
another subsidiary
Company.
Ordinary Shares of USD 1
Ordinary Share Capital
of 23,03,041 shares.
thousand VND stock
out of 39,95,460
thousand VND
stock by Bioseeds
Ltd., another
subsidiary of the
Company.
thousand VND stock
out of 91,29,620
thousand VND stock
by Bioseeds Ltd.,
another subsidiary
of the Company.
Shares of PHP100
each out of total
Shares Capital of
3,58,523 Shares of
PHP 100 each by
Bioseeds Ltd.,
another subsidiary
of the Company.
Holder(s) of 37,424
and subscribed Equity
Share Capital of
37,424 shares by
Bioseeds Ltd., another
subsidiary of the
Company.
(Rs. 0.0012 crore)

(Rs. 0.0013 crore)

J.M. SETH
Partner
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
New Delhi
April 25, 2006
76
DCM Shriram
Infrastructure
Limited
V.P. AGARWAL
Company Secretary
Bioseed
Research
India Pvt. Ltd.
(Rs. 0.016 crore)
Rs.1.22 crores
Rs. 1.30 crores
Rs. 0.27 crore
Rs. 0.02 crore
(Rs. 0.014 crore)
Rs. 2.13 crores
Rs. 2.24 crores
Rs. 0.31 crore
Rs. 0.36 crore
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
77
76-77
7/22/2006, 3:39 AM
DCM SHRIRAM
Subsidiary Companies Particulars
Particulars regarding subsidiary companies persuant to letter no. 47/146/2006-CL-III dated April 25, 2006 from Ministry of Company Affairs
Year Ended March 31, 2006
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
0.71
17.73
17.73
3.40
1.49
0.15
1.34
DSCL Energy Services Company Limited
1.78
0.11
2.18
2.18
4.44
0.30
0.18
0.12
DCM Shriram International Limited
0.05
0.05
0.05
DCM Shriram Infrastructure Limited
0.05
0.05
0.05
Shriram Bioseed Genetics India Limited
5.72
7.22
30.07
30.07
56.64
1.51
0.79
0.72
Bioseeds Limited
11.21
10.43
10.43
(0.03)
(0.03)
Bioseed Research Vietnam
3.27
4.29
7.74
7.74
3.39
2.71
0.15
2.56
Bioseed Genetics Vietnam
1.79
6.41
19.69
19.69
19.46
2.51
0.12
2.39
Bioseed Research Philippines, Inc.
5.16
5.95
5.95
8.55
0.69
0.15
0.54
Bioseed Research India Private Limited
0.37
0.83
1.20
1.20
5.63
0.10
0.07
0.03
DCM Shriram Aqua Foods Limited
8.35
8.41
8.41
(0.04)
(0.04)
Details of Investments (other than in subsidiaries) are as follows:

DCM Shriram Credit and Investments Limited
Rs. Crores
12,380 6.75% Bonds of Unit Trust of India of Rs. 100 each fully paid-up
0.11
763.959 US-2002 of Unit Trust of India of Rs. 10 each fully paid-up (# Rs. 5,000)
National Saving Certificates (## Rs. 9,000)
##
5,400 Master Gains 92 of Unit Trust of India of Rs. 10 each fully paid-up (### Rs. 47,000)
###
2,00,000 equity shares of IFCI Limited of Rs. 10 each fully paid-up
0.08
2,500 equity shares of APW President System Limited of Rs. 10 each fully paid-up
0.01
34,150 equity shares of National Thermal Power Corporation Limited of Rs. 10 each fully paid-up
0.21
9,430 equity shares of Punjab National Bank of Rs. 10 each fully paid-up
0.37
49,950 equity shares of Pacific Land Development Private Limited of Rs. 10 each fully paid-up
0.05
250 units of Infinity Venture India Fund of Rs. 12,945 each fully paid-up
0.20
3,00,000 equity shares of E Commodities Limited of Rs. 10 each fully paid-up
0.30
2,00,000 equity shares of Ellenbarie Commercial Limited of Rs. 10 each fully paid-up
1.50
40,000 equity shares of BMD Estates Private Limited of Rs. 10 each fully paid-up
40,870 equity shares of Yes Bank Ltd. of Rs. 10 each fully paid up
0.18
6,934 equity shares of IL & FS Investment Ltd of Rs. 10 each fully paid-up
0.09
1,44,037 equity shares of Bank of Baroda of Rs. 10 each fully paid-up
3.31
45,128 equity shares of Gujarat State Petronet Ltd of Rs. 10 each fully paid-up
0.12
100 12% redeemable cumulative preference shares of DSCL Energy Services Company Limited
of Rs. 100 each fully paid-up (* Rs. 10,000)
48,993 equity shares of DSCL Energy Services Company Limited of Rs. 10 each fully paid-up
Other Subsidiaries
0.05
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.
78
78
7/22/2006, 3:39 AM
DCM SHRIRAM
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, 2006, 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, DCM Shriram International
Limited, DCM Shriram Infrastructure Limited, DSCL
Energy Services Company Limited, DCM Shriram
Aqua Foods Limited, Shriram Bioseed Genetics India
Limited, Bioseeds Limited, Bioseed Research
Vietnam, Bioseed Genetics Vietnam, Bioseed
Research Phillipines, Inc., and Bioseed Research
India Private Limited whose financial statements
reflect total assets of Rs. 102.22 crores as at March
31, 2006 and total revenues of Rs. 96.87 crores
for the year ended on that date (these figures include
intra group balances and intra group transactions
eliminated on consolidation).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 of the 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, issued by the
Institute of Chartered Accountants of India 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. 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, 2006;
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.

New Delhi
April 25, 2006
J.M. SETH
Partner
79
79
7/22/2006, 3:40 AM
DCM SHRIRAM
DCM SHRIRAM
Consolidated Balance Sheet
Consolidated Profit and Loss Account
of DCM Shriram Consolidated Limited and its Subsidiary Companies as at March 31, 2006
of DCM Shriram Consolidated Limited and its Subsidiary Companies for the year ended March 31, 2006
Schedule
Sources of Funds
Shareholders funds
Share capital
Reserves and surplus
1
2
Minority Interest
Loan funds
Secured
Unsecured
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
33.34
492.19
16.75
426.42
525.53
17.73
443.17
14.88
756.54
328.53
479.22
226.50
1085.07
146.68
705.72
95.41
1775.01
1259.18
1458.43
429.62
1075.56
364.14
1028.81
243.64
711.42
158.56
1272.45
11.67
869.98
33.02
463.29
443.02
37.89
141.08
322.87
323.17
33.46
94.19
1085.28
773.69
531.21
63.18
357.37
60.14
594.39
490.89
417.51
356.18
1775.01
1259.18
Total funds employed

Fixed assets
Gross block
Less: Depreciation
Net block
Investments
Current assets, loans and advances
Inventories
Sundry debtors
Loans and advances
Less: Current liabilities and provisions
Current liabilities
Provisions
6
7
Net current assets

Total funds utilised
Notes to the consolidated accounts
tor
J.M. SETH
Partner
New Delhi
April 25, 2006
14
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
Vice Chairman & Managing Director Chairman & Sr. Managing Direc-
V.P. AGARWAL
Company Secretary
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
Schedule
Income
Sale of products (Gross)
Less: Excise duty
Sale of products (Net)
Expenditure
Manufacturing and other expenses
10
Purchases for resale
Profit for the year before depreciation, exceptional items, interest and tax
Interest - on debentures and other fixed loan
- others
Profit for the year before depreciation, exceptional items and tax
Depreciation
11
Profit for the year before exceptional items and tax
Exceptional items
12
Profit for the year before tax
Provision for taxation - current/deferred tax
13
Profit after tax before minority interest
Minority Interest
Net Profit for the year
Transfer from debenture redemption reserve
Balance brought forward from the previous year
Loss transferred to share premium account
Profit available for appropriation
Appropriations
Proposed dividends
Equity shares
- Interim
- Final
Statutory reserve
General reserve
Balance carried to consolidated balance sheet
Earnings per share - basic/diluted (Rs.)
(Refer note 8 in schedule 14)
Notes to the consolidated accounts
14
Per our report attached to the consolidated balance sheet
J.M. SETH
Partner
New Delhi
April 25, 2006
80
V.P. AGARWAL
Company Secretary
Year ended
March 31, 2006
Rs. Crores
Year ended
March 31, 2005
Rs. Crores
2535.82
143.92
2391.90
24.28
2416.18
1977.35
108.44
1868.91
14.95
1883.86
1409.00
712.07
295.11
39.49
9.89
245.73
73.21
172.52
172.52
47.44
4.08
121.00
(2.85)
118.15
3.67
150.23
272.05
1208.59
439.94
235.33
29.38
5.33
200.62
57.27
143.35
28.59
114.76
7.11
107.65
(2.92)
104.73
2.02
79.20
15.11
201.06
6.64
8.30
2.09
0.27
50.00
204.75
7.12
4.19
9.12
1.83
0.56
0.13
35.00
150.23
6.29
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
Vice Chairman & Managing Director Chairman & Sr. Managing Director
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
81
80-81
7/22/2006, 3:40 AM
DCM SHRIRAM
Consolidated Cash Flow Statement
DCM SHRIRAM
of DCM Shriram Consolidated Limited and its Subsidiary Companies for the year ended March 31, 2006
Year ended
March 31, 2006
Rs. Crores
A.
B.
C.
Cash flow from operating activities

Net profit before tax
Adjustments for :
Depreciation
Provision for contingency
Permanent dimunition in value of Investment
(Profit)/Loss on sale/write off of fixed assets
Cost of land surrendered pursuant to order of Honble Supreme Court
(Net of Rs 1.08 crores transfer from revaluation reserve)
Unrealised exchange difference
Exchange differences on conversion
Finance charges paid
Interest expense
Less: interest and dividend income
Operating profit before working capital changes
Adjustments for:
Trade and other receivables(net)
Inventories
Trade and other payables
Cash generated from operations
Income taxes paid (net)
Net cash from operating activities
Cash flow from investing activities
Purchase of fixed assets
Sale of fixed assets
Inter corporate deposits received back
Purchase of non-trade current investments
Purchase of long term trade investments
Purchase of non-trade long term investments
Sale of non-trade current investments
Sale of non-trade long term investments
Refund of security deposit from investment company
Advance given for purchase of shares received back
Interest received
Dividend received
Net cash used in investing activities
Cash flow from financing activities
Proceeds from borrowings
Repayment of borrowings
Inter Corporate Deposits received back
Inter Corporate Deposits given
Finance charges paid
Changes in working capital borrowings
Dividends paid
Corporate dividend tax paid
Interest received
Interest paid
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents as at opening
Cash and cheques in hand and balances with banks
Cash and cash equivalents as at closing
Cash and cheques in hand and balances with banks
Per our report attached to the consolidated balance sheet

J.M. SETH
Partner
V.P. AGARWAL
Company Secretary
New Delhi
April 25, 2006
Year ended
March 31, 2005
Rs. Crores
172.52
1.
SHARE CAPITAL
114.76
73.21
0.13
0.75
(4.07)
-
(0.05)
(0.17)
0.20
1.35
34.71
(2.89)
225.54
(162.37)
(140.28)
180.06
164.17
(21.92)
142.25
(133.81)
(94.40)
81.77
79.10
(24.77)
54.33
(489.21)
14.60
(1,422.01)
(3.57)
(4.89)
1,447.09
7.95
0.02
1.04
2.03
(446.95)
(246.91)
1.91
0.50
(1,091.42)
1,066.34
2.40
1.73
1.20
(264.25)
2,953.96
(2,613.96)
15.05
(18.58)
(2.48)
39.61
(15.76)
(2.21)
0.20
(47.49)
308.34
3.64
1,158.40
(881.42)
42.34
(37.43)
(1.35)
(39.61)
(10.89)
(1.41)
(33.42)
195.21
(14.71)
30.89
45.60
34.53
30.89
VIKRAM S. SHRIRAM
AJAY S. SHRIRAM
RAJIV SINHA
AJIT S. SHRIRAM
S.S. BAIJAL
PRADEEP DINODIA
SUNIL KANT MUNJAL
D. SENGUPTA
S.L. MOHAN
S.C. BHARGAVA
Directors
Issued
16,98,03,320 (2004-2005 - 1,73,70,332) Equity shares
of Rs. 2 (2004-2005 - Rs. 10) each
Subscribed
16,59,03,320 (2004-2005 - 1,65,90,332) Equity shares
of Rs. 2 (2004-2005 - Rs. 10) each, fully called-up
Add: Forfeited shares - Amount originally paid-up
49.99
49.99
65.01
115.00
65.01
115.00
33.96
17.37
33.18
0.16
33.34
33.34
16.59
0.16
16.75
16.75
NOTES:
1. In accordance with the resolution passed by shareholders through postal ballot on September 30, 2005,
- Equity shares of the face value of Rs. 10 each were divided into 5 equity shares of Rs. 2 each, and
- 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. Of the issued, subscribed and paid-up capital, 2,87,75,380 (2004-2005 - 57,55,076) equity shares of Rs. 2 (2004-2005 - Rs. 10)
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.
2.
RESERVES AND SURPLUS
Revaluation reserve
Share premium account
Capital redemption reserve
Capital reserve
General reserve
Statutory reserve *
Foreign currency translation reserve
Profit and loss account
#
$
##
*
3.
As at
March 31, 2005
Rs. Crores
0.36
15.51
65.07
25.00
22.61
148.32
0.44
(1.12)
150.23
426.42
Transfer to profit and loss account on redemption.
Issue of bonus shares during the year.
Refer note 12 in Schedule 14.
As per The Reserve Bank of India (Amendment) Act, 1997.
Additions
Rs. Crores
50.00
0.27
0.29
54.52
105.08
Deductions
Rs. Crores
0.01
3.67 #
16.59 $
19.04 ##
-
As at
March 31, 2006
Rs. Crores
0.35
11.84
65.07
8.41
22.61
179.28
0.71
(0.83)
204.75
39.31
492.19
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
23.67
31.00
53.83
485.47
193.57
756.54
12.45
284.70
151.07
479.22
11.29
25.77
0.09
12.92
24.52
0.34
181.60
109.46
0.32
328.53
1,085.07
153.56
35.04
0.12
226.50
705.72
LOAN FUNDS
Secured
Debentures
Loans from banks
On cash credit account
Others
Other loans
Unsecured
Deposits
Fixed
Others
Interest accrued and due on deposits
Short term loans and advances
Banks
Others
Finance lease liability*
*
Represents present value of minimum lease payments. Also refer note 7 in schedule 14.
82
As at
March 31, 2005
Rs. Crores
Authorised
24,99,50,000 (2004-2005 - 4,99,90,000) Equity shares
of Rs. 2 (2004-2005 - Rs. 10) each
65,01,000 (2004-2005 - 65,01,000) Cumulative redeemable
preference shares of Rs. 100 each
57.27
11.96
5.26
3.14
(0.78)
(3.20)
(0.07)
2.48
49.38
(3.59)
286.76
As at
March 31, 2006
Rs. Crores
83
82-83
7/22/2006, 3:41 AM
DCM SHRIRAM
3.
(Continued)
Loan funds (Continued)
DCM SHRIRAM
3.
Loan funds (Continued)

v)
Term loan of Rs. 11.00 crores (2004-2005 - Rs. 15.00 crores) from others is secured by way of subservient mortgage/charge,
created/to be created on 9 MW power plant at Ajbapur Sugar Complex and 6MW power plant at Rupapur Sugar Complex of the
Company (Rs. 4.00 crores due within a year, 2004-2005 - Rs. 4.00 crores).
vi) Term loan of Rs. 89.24 crores (2004-2005 - Rs. Nil) from a bank is secured by way of first mortgage/charge created/to be created
on all immovable/movable assets, both present and future, subject to charges created/to be created in favour of Companys
bankers on the stocks of raw materials, semi-finished goods, finished goods and consumable stores for securing working capital
borrowings, pertaining to the Companys Loni Sugar Complex, Uttar Pradesh (Rs. Nil due within a year, 2004-2005 - Rs. Nil).
vii) Term loan of Rs. 22.71 crores (2004 2005 - Rs. Nil) from a bank is secured by way of first mortgage/charge created/to be created
on all immovable/movable assets, both present and future, subject to charges created/to be created in favour of Companys
bankers on the stocks of raw materials, semi-finished goods, finished goods and consumable stores for securing working capital
borrowings, pertaining to the Companys Hariawan Sugar Complex, Uttar Pradesh (Rs. Nil due within a year, 2004-2005 - Rs. Nil).
viii) Term loan of Rs. 33.66 crores (2004-2005 - Rs. Nil) from a bank is secured by way of first mortgage/charge created/to be created
on all immovable/movable fixed assets, both present and future pertaining to the Companys Rupapur Sugar Complex, Uttar
Pradesh (Rs. Nil due within a year, 2004-2005 - Rs. Nil).
Secured
1. Debentures - Company:
i) Debentures detailed below are secured by English first mortgage on the Companys property at Taluka Kalol, District Gandhinagar,
Gujarat and first equitable mortgage/charge on immovable/movable properties, both present and future, of the Companys undertakings
at Kota, Rajasthan, subject to charges created/to be created in favour of the Companys 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) 15,00,000 (2004-2005 - 15,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in
three equal annual instalments commencing from November 1, 2005. The first instalment has been paid during the year
(Rs. 5.00 crores due within a year, 2004-2005 - Rs. 5.00 crores).
b) 5,00,000 (2004-2005 - 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 (Rs. 1.67 crores due within a year, 2004-2005 - Rs. Nil).
ii) Debentures detailed below are secured by English first mortgage on the Companys property at Taluka Kalol, District Gandhinagar,
Gujarat and first equitable mortgage/charge on immovable/movable properties both present and future, of the Companys undertaking
at District Bharuch, Gujarat (save and except book debts) subject to charges created/to be created in favour of the Companys
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) 6,00,000 (2004-2005 - 6,00,000) 8.5% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in three
equal annual instalments commencing from November 1, 2005. The first instalment has been paid during the year (Rs. 2.00
crores due within a year, 2004-2005 - Rs. 2.00 crores).
b) 1,00,000 (2004-2005 - 1,00,000) 11% Secured redeemable non-convertible debentures of Rs. 100 each, redeemable in three
equal annual instalments commencing from November 1, 2005. The first instalment has been paid during the year (Rs. 0.33
crore due within a year, 2004-2005 - Rs. 0.33 crore).
c) 4,00,000 (2004-2005 - 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 (Rs. 1.33 crores due within a year, 2004-2005 - Rs. Nil)
2. Short term working capital borrowings from Bank:
i)
Company
Loans from banks on cash credit account of Rs. 40.90 crores (2004-2005 - Rs. 1.29 crores) are secured by first charge by way of
hypothecation of stocks/stores and book debts of the Companys undertaking at Kota and Tonk in Rajasthan, Ajbapur and Rupapur
in Uttar Pradesh and Bharuch in Gujarat. These loans are further secured/to be secured by a third charge by way of mortgage/
hypothecation of all the immovable/movable properties (other than current assets) of the Companys undertakings at Kota in
Rajasthan and Ajbapur in Uttar Pradesh and second charge by way of mortgage/hypothecation of all the immovable/movable
properties (other than current assets) of the Companys undertakings at Rupapur in Uttar Pradesh.
ii) Shriram Bioseed Genetics India Limited (SBGI), a subsidiary
Short term loans and advances from banks of SBGI of Rs. 12.93 crores (2004-2005 - Rs. 11.16 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 spares, tools and accessories both present and future.
3. Loans from Banks and Others : Company
i)
Term loans of Rs. 49.34 crores (2004-2005 - Rs. 71.15 crores) from banks and term loans of Rs. 12.00 crores (2004-2005 Rs. 23.95 crores) from others are secured by pari-passu first mortgage/charge, created on all immovable and movable assets, both
present and future, (save and except book debts), subject to prior charges created/to be created in favour of the Companys
bankers on the stocks of raw materials, semi-finished and finished goods and consumable stores for working capital borrowings
and a term loan of Rs. 20.00 crores (2004 - 2005 - Rs. Nil) from a bank is secured by way of second mortgage/charge, created/
to be created on all immovable and movable fixed assets, both present and future, pertaining to the Companys undertakings at
District Bharuch, Gujarat (Rs.19.97 crores due within a year; 2004-2005 - Rs. 26.75 crores).
ii) Term loans of Rs. 128.48 crores (2004-2005 - Rs. 154.22 crores) from banks and term loans of Rs. 27.00 crores (2004-2005 Rs. 36.80 crores) from others are secured by way of first mortgage/charge, created ranking pari-passu on all immovable and
movable assets, both present and future, (save and except book debts), term loan of Rs. 133.86 crores (2004-2005 - Rs. 65.61
crores) from others are secured by way of first mortgage/charge, created ranking pari passu on all immovable and movable assets,
both present and future, subject to charges created or to be created in favour of the Companys bankers on the stocks of raw
materials, semi-finished and finished goods and consumable stores for working capital borrowings, and term loans of Rs. 50.00
crores (2004-2005 - Rs. Nil) from banks are secured by way of second mortgage/charge, created/to be created on all immovable
and movable fixed assets, both present and future of the Companys undertakings at Kota, Rajasthan (Rs. 18.67 crores due within
a year; 2004-2005 - Rs. 25.61 crores).
iii) Term loan of Rs. 7.33 crores (2004-2005 - Rs. 9.33 crores) from a bank is secured by way of first mortgage/charge, ranking paripassu, on all immovable/movable assets, both present and future, pertaining to the Companys Ajbapur Sugar Complex and
Rupapur Sugar Complex, Uttar Pradesh, subject to charges created/to be created in favour of Companys bankers on the stocks of
raw materials, semi-finished goods, finished goods and consumable stores for securing working capital borrowings (Rs. 2.00
crores due within a year, 2004-2005 - Rs. 2.00 crores).
iv) Term loan of Rs. 84.71 crores (2004-2005 - Rs. 50.00 crores) from banks are secured by way of first mortgage/charge, ranking
pari-passu, on all immovable/movable assets, both present and future and term loan of Rs. 9.71 crores (2004-2005 - Rs. 9.71
crores) from others is secured by way of a exclusive second charge on all immovable/movable assets (save and except book debts)
subject to charges created/to be created in favour of the Companys bankers on the stocks of raw materials, semi-finished goods,
finished goods and consumable stores for securing working capital borrowings both present and future, pertaining to the Companys
Ajbapur Sugar Complex, Uttar Pradesh (Rs.Nil due within a year, 2004-2005 - Rs. Nil).
4.
DEFERRED TAX LIABILITIES AND ASSETS

As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
155.79
4.79
5.68
166.26
123.05
4.79
5.59
133.43
12.54
2.29
0.27
-*
4.48
19.58
146.68
11.29
2.10
1.13
19.04
4.46
38.02
95.41
Deferred tax liabilities

Depreciation
Compensation payable to employees
Others
Deferred tax assets
Provision for gratuity and leave encashment
Unabsorbed depreciation/business loss
Unabsorbed capital loss
Others
* Refer note 12 in Schedule 14
5.
FIXED ASSETS
GROSS BLOCK
Description
Tangibles
Land
Buildings
Plant and machinery
Furniture and fittings
Vehicles
Intangibles
Goodwill
Technical know-how
Brand
Assets on lease
Vehicles
This year
Previous year
(including capital advances)
As at
March 31,
2005
Rs. Crores
DEPRECIATION
Additions
Deductions
Rs. Crores
Rs. Crores
34.23
96.27
865.16
20.49
15.51
14.85
21.48
348.74 ***
3.81
6.10
0.01
15.13
0.86
2.53
17.99
16.71
8.22
0.15
6.11
-
0.98
1,075.56
894.38
0.21
401.45
215.57
0.05
18.58
34.39
As at
March 31,
2006
Rs. Crores
49.07 *
117.75 **
1,198.77 $
23.44
19.08
18.14
22.82
8.22
1.14 $$
1,458.43 ##
1,075.56
NET BLOCK
Up to
March 31,
2005
Rs. Crores
For
the year
Deductions
Up to
March 31,
2006
Rs. Crores
Rs. Crores
Rs. Crores
13.00
318.29
12.50
6.82
2.79
60.64
2.43
2.88
(0.01)
5.67
0.55
1.75
15.80
373.26
14.38
7.95
49.07
101.95
825.51
9.06
11.13
34.23
83.27
546.87
7.99
8.69
5.58
5.75
1.68
1.81
1.99
0.69
(0.06)
-
7.45
7.74
2.37
10.69
15.08
5.85
12.41
10.96
6.54
0.52
364.14
318.58
0.13
73.36#
57.30
(0.02)
7.88
11.74
0.47
1,028.81
0.46
0.67
429.62 ###
364.14
As at
As at
March 31, March 31,
2006
2005
Rs. Crores Rs. Crores
243.64
711.42
158.56
1,272.45
869.98
- Includes Rs. 0.22 crore (2004-2005 - Rs. 2.17 crores) pertaining to land situated at Shankarpally and Rupapur, pending registration in favour of Company.
- Includes Rs. 2.15 crores (2004-2005 - Rs. 2.15 crores) being value of land jointly held and possessed in equal proportion with M/s. Irama Estates Limited,
Calcutta, pursuant to the Agreement between the parties.
** Includes Rs. 1.15 crores (2004-2005 - Rs. 1.15 crores) pertaining to a flat situated at Mumbai, pending registration in favour of the Company.
*** Includes Rs. 2.48 crores (2004-2005 - Rs. 3.42 crores) on account of foreign exchange fluctuation.
$
Include 0.79 crore (2004-2005 - Rs. 9.01 crores) in respect of certain plant and machinery retired from active use and held for disposal.
$$ Refer note 7 in Schedule 14 .
#
Include transfer to capital work-in-progress Rs. 0.12 crore in respect of Sugar Projects.
## Includes Rs. 0.32 crore (2004-2005 - Rs. 0.02 crore) on account of foreign currency translation.
### Includes Rs. 0.14 crore (2004-2005 - Rs. (0.08) crore) on account of foreign currency translation.
84
(Continued)
85
84-85
7/22/2006, 3:41 AM
DCM SHRIRAM

6.
DCM SHRIRAM
(Continued)
6.
INVESTMENTS
As at
March 31, 2006
Rs. Crores
Long Term
(valued at cost unless there is permanent fall in value thereof)
Trade Investments
Unquoted
fully paid-up of Bharuch Eco Aqua Infrastructure Limited
72,274 shares allotted during the year.
35,00,000 (2004-2005 - Nil) Equity shares of Rs. 10 each fully
paid-up of Forum I Aviation Limited, allotted during the year.
Quoted
763.959 (2004-2005 - 763.959) US-2002 of Unit Trust
of India of Rs. 10 each fully paid-up (# Rs. 0.05 lac).
Non-Trade Investments
Government securities
Unquoted
National savings certificates*
Investment in Shares, Units, etc.
Quoted
Nil (2004-2005 - 26,500) Equity shares of Rs. 10 each fully
paid-up of The ICICI Bank Limited. 26,500 shares sold
during the year.
Nil (2004-2005 - 3,16,510) Units of Rs. 10 each fully paid-up of
Kotak Mahindra Mutual Fund (K Bond - wholesale plan).
3,16,510 Units sold during the year.
95,495 (2004-2005 - 95,495) 6.75 % Bonds of Rs. 100 each
fully paid-up of Unit Trust of India.
2,00,000 (2004-2005 - 5,00,000) Equity shares of IFCI Limited
of Rs. 10 each fully paid-up. 3,00,000 equity shares sold
during the year.
5,400 (2004-2005 - 5,400) Master Gains 92 of Unit Trust
of India of Rs. 10 each fully paid-up (@ Rs. 0.47 lac).
2,500 (2004-2005 - 2,500) Equity shares of APW President
System Limited of Rs. 10 each fully paid-up.
1,44,037 (2004-2005 - Nil) Equity shares of Bank of Baroda
of Rs. 10 each fully paid-up, allotted during the year.
45,128 (2004-2005 - Nil) Equity shares of Gujrat State Petronet
Limited of Rs. 10 each fully paid-up, allotted during the year.
Nil (2004-2005 - 3,721) Equity shares of Jet Airways Limited
of Rs. 10 each fully paid-up . 3,721 Equity shares sold
during the year.
0.72
3.50
0.01
0.12
0.33
0.95
0.95
0.08
0.20
0.01
INVESTMENTS (Continued)
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
0.21
0.41
0.37
0.37
0.18
0.09
0.05
0.05
0.05
0.22
0.20
1.63
0.30
0.30
1.50
1.50
0.75
20.00
5.00
TOTAL
11.67
33.02
Aggregate book value
5.32
6.35
11.21
2.80
30.22
6.08
As at
March 31, 2005
Rs. Crores
0.79
0.01
0.01
3.31
0.12
0.40
34,150 (2004-2005 - 67,150) Equity shares of National Thermal

Power Corporation Limited of Rs. 10 each fully paid-up. 33,000
Equity shares sold during the year.
9,430 (2004-2005 - 9,430) Equity shares of Punjab National Bank
of Rs. 10 each fully paid-up.
fully paid-up of SRF Polymer Limited.
40,870 (2004-2005 - Nil) Equity shares of Yes Bank Limited
of Rs. 10 each fully paid-up. 50,870 shares allotted during the year
and out of those, 10,000 shares sold during the year.
6,934 (2004-2005 - Nil) Equity Shares of IL & FS Investments
Limited of Rs. 10 each fully paid-up. 15,184 Equity shares allotted
during the year and out of those, 8,250 shares sold during the year.
Unquoted
Nil (2004-2005 - 50,000) Equity shares of Feedback Ventures
Private Limited of Rs. 10 each fully paid-up. 50,000 shares sold
during the year.
49,950 (2004-2005 - 49,950) Equity shares of Pacific Land
Development Private Limited of Rs. 10 each fully paid-up.
Nil (2004-2005 - 5,00,000) Units of Alliance Millenium Fund of
Rs.10 each fully paid-up. 5,00,000 units redeemed during the year.
250 (2004-2005 - 250) Units of Infinity Venture India Fund of
Rs. 12,945 (2004-2005 - 1,00,000) each, Rs. 12,945
(2004-2005 - 65,000) each paid-up.
3,00,000 (2004-2005 - 3,00,000) Equity shares of E Commodities
Limited of Rs. 10 each fully paid-up.
2,00,000 (2004-2005 - 2,00,000) Equity shares of Ellenbarie
Commercial Limited of Rs. 10 each fully paid-up.
40,000 (2004-2005 - 40,000) Equity shares of BMD Estate Private
Limited of Rs. 10 each fully paid-up.
Less: Permanent diminution in value
Current Investments
Non-Trade, Unquoted
Nil (2004-2005 - 1,99,69,669) Units of Rs. 10 each fully paid-up of
JM Financial Mutual Fund. 1,99,69,669 Units sold during the year.
Nil (2004-2005 - 50,00,000) Units of Rs. 10 each fully paid-up of
JM Mutual Fund. 50,00,000 Units sold during the year.
- Quoted
- Unquoted
Aggregate market value - Quoted
0.75
0.75
* Lodged with Sales Tax authorities Rs. 9,000 (2004-2005 - Rs. 9,000)
86
(Continued)
87
86-87
7/22/2006, 3:41 AM
DCM SHRIRAM

7.
(Continued)
CURRENT ASSETS, LOANS AND ADVANCES
8.
As at
March 31, 2006
Rs. Crores
Current Assets
Inventories
Stores and spares*
Stock-in-trade**
Raw materials
Process stocks
Finished goods
Securities
Sundry debtors
Debts over six months
Secured
- considered
- considered
Other debts
Secured
- considered
good
good
doubtful
good
good
Less: Provision for doubtful debts

Cash on hand
Cheques in hand
With scheduled banks on
Current account
Deposit account #
Loans and Advances
Advances recoverable in cash or in
kind or for value to be received
Unsecured - considered good
- considered doubtful
Less: Provision for doubtful advances
Deposits
With customs, excise and port trust authorities
Tax payments (net of provision for current tax and FBT)
MAT Credit entitlement
Interest accrued on investments and deposits
*
**
#
$
DCM SHRIRAM
(Continued)
CURRENT LIABILITIES AND PROVISIONS
As at
March 31, 2005
Rs. Crores
60.10
57.21
31.92
12.59
358.67
0.01
463.29
29.40
10.81
225.44
0.01
322.87
0.02
59.77
7.55
0.24
27.93
7.07
1.14
382.09
450.57
7.55
443.02
0.56
294.44
330.24
7.07
323.17
0.96
4.10
1.73
3.37
29.23
3.60 $
37.89
85.51
0.56
0.56
85.51
14.36
30.15
9.28
1.62
0.16
141.08
1,085.28
25.42
2.94
33.46
57.02
0.21
0.21
57.02
11.44
17.17
8.19
0.37
94.19
773.69
Current Liabilities
Sundry creditors#
Total outstanding dues of small scale industrial undertakings
Total outstanding dues of creditors other than small scale
industrial undertakings
Ex-gratia payable under voluntary retirement schemes*
Interest accrued but not due on loans
Provisions
Gratuity
Leave encashment
Proposed dividend
#
*
9.
As at
March 31, 2006
Rs. Crores
As at
March 31, 2005
Rs. Crores
1.04
1.33
520.82
1.81
7.54
531.21
348.73
2.03
5.28
357.37
29.02
8.61
8.30
1.16
16.09
63.18
594.39
26.49
7.29
9.12
1.28
15.96
60.14
417.51
Sundry creditors do not include any amounts outstanding as on March 31, 2006 which are required to be credited to Investor
Education and Protection Fund.
Rs. 0.23 crore (2004-2005 - Rs. 0.28 crore) due within a year.

Other Income
Dividend income (gross) from:
Profit on sale of:
Profit on sale of fixed assets
Interest income*
Rent
Liabilities/provisions no longer required written back
Miscellaneous
Year ended
March 31, 2006
Rs. Crores
4.48
Year ended
March 31, 2005
Rs. Crores
2.75
0.03
2.00
0.04
1.16
3.20
0.78
4.07
1.58
0.03
0.51
7.60
24.28
0.17
0.05
1.69
0.04
0.78
0.03
8.24
14.95
* Income-tax deducted at source Rs. 0.50 crore (2004-2005 - Rs. 0.51 crore)
Stores and spares are valued at cost or under.

Stock-in-trade is valued at cost or net realisable value, whichever is lower.
Includes Rs. 0.43 crore (2004-2005 - Rs. 0.49 crore) provided as margin for bank guarantees and letters of credit.
Includes Rs. 0.10 lac lodged with sales tax authority.
88
89
88-89
7/22/2006, 3:41 AM
DCM SHRIRAM
(Continued)
10. Manufacturing and Other Expenses
Raw materials consumed

Stores, spares and components
Power, fuel, etc.
Repairs
Buildings
Plant and machinery
Salaries, wages, bonus, gratuity, commission, etc.
Provident and other funds
Welfare
Rent
Insurance
Donation
Rates and taxes
Auditors remuneration*
Audit fee
Tax audit
Other services
Out-of-pocket expenses
Directors fees
Permanent Dimunition in value of Investment
Bad debts and advances written-off
Freight and transport
Commission to selling agents
Brokerage, discounts (other than trade discounts), etc.
Selling expenses
Loss on sale/write-off of fixed assets
Loss of Inventories damaged due to hailstorm
Increase/(decrease) in excise duty of finished goods
Miscellaneous expenses
Less: Cost of own manufactured goods capitalised
(Increase)/decrease in stocks of finished goods and process
stocks
Closing stocks
Less: Opening stocks
DCM SHRIRAM
(Continued)
11. DEPRECIATION
Year ended
March 31, 2006
Rs. Crores
795.80
105.51
290.06
Year ended
March 31, 2005
Rs. Crores
624.75
92.45
239.11
3.57
19.82
114.01
11.54
7.21
6.75
5.79
0.41
1.54
3.08
20.93
97.58
9.74
5.56
5.29
4.68
0.84
0.94
0.45
0.05
0.37
0.02
0.07
0.75
0.22
0.84
78.61
0.67
9.26
20.77
9.39
(2.19)
(2.19)
0.13
64.89
1,546.31
(2.30)
1,544.01
0.39
0.04
0.30
0.04
0.06
1.59
2.01
60.25
0.64
9.71
21.03
4.26
5.26
2.88
4.38
54.69
1,272.48
1,272.48
371.27
236.26
(135.01)
236.26
172.37
(63.89)
1,409.00
1,208.59
Depreciation
Less: Transfer from revaluation reserve
Year ended
March 31, 2006
Rs. Crores
73.24
0.03
73.21
Year ended
March 31, 2005
Rs. Crores
57.30
0.03
57.27
Year ended
March 31, 2006
Rs. Crores
Year ended
March 31, 2005
Rs. Crores
13.49
12. Exceptional items
Cane price differential arising consequent to the Honble

Supreme Court order dated May 5, 2004 for sugar seasons
1996-1997, 2002-2003 and 2003-2004
Cost of land surrendered under the order of the
Supreme Court
Less: Transfer from revaluation reserve
4.22
1.08
3.14
11.96
28.59
13. CURRENT/DEFERRED TAX
Current tax
Less : MAT credit entitlement
Add : Current tax of earlier years
Deferred tax
Year ended
March 31, 2006
Rs. Crores
15.38
(1.62)
1.45
15.21
32.23
47.44
Year ended
March 31, 2005
Rs. Crores
21.19
(14.08)
7.11
* Includes remuneration of auditors of the Company and its subsidiaries.
90
91
90-91
7/22/2006, 3:42 AM
DCM SHRIRAM
(Continued)
14. NOTES TO THE CONSOLIDATED ACCOUNTS
Country of
incorporation
% voting power
held as at
March 31, 2006
% voting power
held as at
March 31, 2005
Subsidiary companies
DCM Shriram Credit And Investments Limited (DSCIL)
India
100
100
DSCL Energy Services Company Limited (DESL)
India
99.99
99.99
DCM Shriram International Limited (DSIL)
(100% subsidiary company of DSCIL)
India
100
100
DCM Shriram Infrastructures Limited (DCMSIL)
(100 % subsidiary of DSCIL)
India
100
100
DCM Shriram Aqua Foods Limited (DSAFL)
India
99.99
99.99
Bioseeds Limited (BL)
Mauritius
51
51
Bioseed Genetics Vietnam (BGV)
(100% subsidiary company of BL)
Vietnam
51
51
Bioseed Research Vietnam (BRV)
Vietnam
51
51
Bioseed Research Philippines, Inc. (BRP)
Philippines
51
51
Bioseed Research India Private Limited (BRI)
(99.99% subsidiary company of BL)
India
50.99
50.99
Shriram Bioseed Genetics India Limited (SBGI)
India
51
51
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 issued by the Institute of Chartered Accountants of India.
(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%
b)
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.
On assets sold, discarded, etc. during the year, depreciation is provided upto the date of sale/discard.
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 where the foreign currency liabilities have been incurred in connection with fixed
assets acquired up to March 31, 2004 and subsequent thereto in case of fixed assets acquired from a country outside India,
where the exchange differences are adjusted in the carrying amount of concerned 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 where the foreign currency liabilities have been incurred in
connection with fixed assets acquired up to March 31, 2004 and subsequent thereto in case of fixed assets acquired from
a country outside India, where the exchange differences are adjusted in the carrying amount of concerned fixed assets.
In respect of derivative contracts, gain/losses are recognised on actual settlement of respective contracts.
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 market/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.
(viii) Retirement and other benefits
The Company has the following retirement schemes:
- Superannuation fund for officers.
- Provident fund for all employees.
The contributions to the above funds are charged to revenue each year.
Provision for gratuity and leave encashment determined on an actuarial basis at the end of the year are charged to revenue every
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, being the difference between taxable
income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
92
(Continued)
14. NOTES TO THE CONSOLIDATED ACCOUNTS (Continued)
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 units of the Company. These statements have been prepared in accordance with Accounting Standard (AS) 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 Companys separate financial statements.
the excess of cost to the Company of its investment in a subsidiary company over the Companys 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, which
is amortised over a period of ten years.
b) The companies considered in the consolidated financial statements are:
Name of the Company
DCM SHRIRAM
93
92-93
7/22/2006, 3:42 AM
DCM SHRIRAM
(Continued)
(i)
Contingent liabilities not provided for:

Claims* (excluding claims by employees where amount not
ascertainable) not acknowledged as debts:
Sales tax matters
Excise matters
Additional premium on land
Others
Total
* 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)

(iii) Guarantees given to financial institutions,
banks and other parties in respect of loans
availed by subsidiaries and other parties:
Amount guaranteed
Amount of loans outstanding
3.
4.
5.
6.
Previous Year
Rs. Crores
D. Information about business segments

Rs. Crores
PARTICULARS
13.30
2.40
8.11
8.22
32.03
2.83
2.84
8.11
8.22
22.00
Fertiliser
Plastics
Chemicals
Traded Products
Sugar
Others
Elimination
Total
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
600.44
536.14
246.49
225.51
360.24
464.24 388.13
237.00 337.51
256.47
24.49
0.22
4.42
9.70
2.59
24.85
0.06
19.32
464.24 388.35
237.00 351.63
259.06
Year
Year
Year
Year
Year
1. REVENUE
External sales
Inter segment sales
Total revenue
0.10
600.54
536.14
271.34
250.00
379.62
21.27
18.89
34.38
62.94
128.87
257.99 603.01
0.16
19.76
277.91 603.01
2535.82 1977.35
4.48
2.75
(54.19)
(44.25)
(54.19)
(44.25) 2540.30 1980.10
2. RESULTS
224.81
122.84
Segment results
Unallocated expenses (net of income)
Operating profit
1.85
0.46
12.50
4.94
In accordance with past practice, the Company has taken revenue credits aggregating Rs. 47.58 crores (2004-2005 - Rs. 107.05
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. 28.62 crores (2004-2005 - Rs. 6.21 crores) for subsidy claims relating to Di-Ammonium Phosphate and
Muriate of Potash have been taken which are pending notification of final rates of concession/subsidy by the Government of India,
Ministry of Chemicals and Fertilizers. Necessary adjustment to revenue credits so accrued will be made on issuance of notification by
FICC/Government of India, Ministry of Chemicals and Fertilizers or final settlement thereof.
The Honble 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.
Sundry debtors of Shriram Bioseed Genetics India Limited (SBGI) include Rs. 1.16 crores (Previous Year 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.
Segment reporting
A. Business segments:
Based on the guiding principles given in Accounting Standard (AS)-17 Segment Reporting issued by the Institute of Chartered
Accountants of India, the Companys business segments include: Fertilisers (manufacturing of urea), Plastics (manufacturing of
Polyvinyl chloride and carbide), Chemicals (manufacturing of chlor-alkali products), Traded Products (trading of di-ammonia
phosphate, murate of potash, super phosphate, other fertilisers, seeds, pesticides and plaster of paris), Sugar (manufacturing of
sugar products), Others (Energy Services, textiles, agri retail business, manufacturing of cement, compounds and UPVC Window
Systems).
B. Geographical segments:
Since the Companys 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 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.
Interest expense
Income taxes
21.27
18.89
34.38
62.94
128.87
82.44
82.44
(0.01)
(0.01)
3.89
3.89
72.34
72.34
49.83
49.83
(0.41)
(0.41)
(9.38)
256.44 208.61
(9.38)
(34.54) (30.55)
221.90 178.06
49.38
47.44
- current/deferred tax
34.71
7.11

Profit before exceptional items
4.08
121.00 136.24
Exceptional items
Net profit
- 28.59
121.00 107.65
3. OTHER INFORMATION
A. ASSETS
Segment assets
283.13
285.81
301.00
163.51
378.70
337.49 338.54
129.92 643.07
387.96 333.33
299.12
2277.77 1603.81
Unallocated assets
Total assets
283.13
285.81
301.00
163.51
378.70
337.49 338.54
129.92 643.07
387.96 333.33
299.12
91.63 72.58
2369.40 1676.39
45.95
35.47
25.09
21.25
26.50
27.17 317.50
B. LIABILITIES
Segment liabilities
Share capital and reserves
181.50
76.18
64.78
52.40
46.73
Secured and unsecured loans

Unallocated liabilities
Total liabilities
543.62 376.90
525.53 443.17
1085.07 705.72
215.18 150.90
45.95
35.47
25.09
21.25
26.50
27.17 317.50
181.50
76.18
64.78
52.40
46.73
32.24
38.35
37.41
8.89
12.76
11.47
0.18
1.30
2.23
2369.40 1676.69
C. OTHERS
Capital expenditure
14.56
12.03
123.38
74.54
61.06
106.27
0.10
0.02 243.23
Depreciation
Non cash expenses
10.10
10.34
10.98
5.44
25.57
21.10
0.04
0.03
0.04
0.80
5.26
0.39
other than depreciation
7.
11.35
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. 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
Total of minimum lease payments at

the balance sheet date
Less: Future finance charges
Present value of minimum lease
payments at the balance sheet date
94
(Continued)

This Year
Rs. Crores
2.
DCM SHRIRAM
Not later than

one year
This
Previous
year
year
Later than one year

but not later than five years
This
Previous
year
year
This
year
Previous
year
0.37
0.05
0.14
0.02
0.11
0.02
0.04
0.01
0.26
0.03
0.10
0.01
0.32
0.12
0.09
0.03
0.23
0.09
95
94-95
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DCM SHRIRAM
(Continued)

8.
Earnings per share

This Year
Rs. Crores
118.15
16,59,03,320
7.12
Profit after tax as per consolidated profit and loss account

Basic/Weighted average number of equity shares outstanding*
Basic and diluted earnings per share in rupees (face value - Rs. 2 per share)
Previous Year
Rs. Crores
104.73
16,65,44,416
6.29
* The equity shares of the face value of Rs. 10 each were sub-divided into five equity shares of Rs. 2 each with effect from October 18,
2005. Further, the Company has allotted bonus shares in the ratio of 1:1 on October 19, 2005. In accordance with the requirements
of Accounting Standard (AS) - 20 Earnings per share issued by the Institute of Chartered Accountants of India, earning per share for
previous year has been restated based on weighted average number of equity shares after considering the enhanced equity share
capital post share split and bonus issue.
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, Mrs. Divya Sinha (relative of Mr. Rajiv Sinha), M/s. Ajay S. Shriram (HUF), M/s. Vikram S. Shriram (HUF), Mr. Aditya A.
Shriram (relative of Mr. Ajay S. Shriram)
B. Transactions with Key Managerial Persons, their relatives and HUFs.
Key Managerial Personnel,
their relatives and HUFs
Hire of premises - rent paid

Security deposit given
Managerial remuneration including commission
Remuneration paid (*Rs. 40,000)
Balance outstanding as at the year end
- Security deposits for premises hired
- Fixed deposits
This Year
Rs. Crores
0.55
5.38
*
Previous Year
Rs. Crores
0.46
0.35
4.63
-
5.14
0.06
5.18
0.06
10. Amount of borrowing costs capitalised to fixed assets during the year Rs. 11.91 crores (2004-2005 - Rs. 1.03 crores).
11. Provision for contingencies aggregating to Rs. 12.09 crores (2004-2005 - Rs. 11.96 crores) in Schedule 8 represents the maximum
possible exposure on ultimate settlement of issues relating to reconstruction arrangement of the companies.
12. The company, consequent to issue of Accounting Standard Interpretation 4 (Revised) - Losses under the head Capital Gains issued
by the Institute of Chartered Accountants of India, deferred tax assets aggregating Rs. 19.04 crores relating to unabsorbed capital
losses as on March 31, 2005 has been charged to the general reserve.
13. Category-wise quantitative data about Derivative Instruments:
Nature of Derivative
Number of deals
Dollar Interest rate swap

Overnight Index swap
Currency swap
This
Year
3
2
1
Previous
Year
3
Options
Purpose
This
Year
Hedging
Hedging
Conversion of
Indian Rupee
into USD
Hedging
Previous
Year
Conversion of
Indian Rupee
into USD
-
Amount
USD Crores
This
Previous
Year
Year
2.10
0.56
0.53
2.00
Amount in Rs. Crores

This
Year
93.40
45.00
25.00
Previous
Year
23.73
89.24
Foreign Currency exposures that are not hedged by derivative instruments or otherwise is as follows:
Particulars
Loans
Liabilities
As at March 31, 2006

Amount in foreign
currency (Crores)
1.50 USD
66.93
243.61 JPY
92.18
0.11 USD
4.78
0.01 EURO
0.27
0.01 GBP
0.95
As at March 31, 2005

Amount in foreign
currency (Crores)
1.68 USD
73.42
3.10 USD
135.53
-
14. Previous years figures have been recast, wherever necessary.

15. Schedules 1 to 14 form an integral part of the financial statements.
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7/22/2006, 3:42 AM

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Contents

03 Our Core Values and Beliefs

05 Senior Executive Team

07 Chairman and Vice-Chairman's Statement 12

08 Management Discussion and Analysis

09 Corporate Social Responsibility

11 Corporate Governance Report

Kota Manufacturing Complex

waste generated from the Calcium carbide production

This is highly integrated, covering manufacture of PVC

business by increasing the capacity from 14,000 TCD to

its 51% subsidiary Shriram Bioseed Genetics India Ltd.

Hariyali Kisaan Bazaar

It is a one stop solution to the multiple needs of the rural

Energy Services (ESCO)

DSCL has the countrys lowest cost naphtha based urea

PVC Resin is fully integrated with captive production

PVC Compounds of which DSCL is the largest

DSCLs Sugar business is one of the key segments of

iii. The Cement business, located at Kota is based on

DSCL ANNUAL REPORT 05-06

Our Core Values and Beliefs

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

Innovation and Excellence

Work closely as a cohesive, well-knit team

Relationships and Human Dignity

DSCL ANNUAL REPORT 05-06

Think differently and promote creativity

Products and their location of manufacture

Value people and partnerships

Social Responsibility and Ethics

Brief Profile of Directors of the Company

Shri Ajay S. Shriram

Shri Ajay S Shriram, Chairman & Senior

Dr. S S Baijal, is a Non-Executive Director

Shri Sunil Kant Munjal, is a Non-Executive

Shri Vikram S Shriram, Vice Chairman &

Shri Arun Bharat Ram, is a Non-Executive

Shri D Sengupta, is a Non-Executive

Shri Rajiv Sinha, Deputy Managing

Shri Pradeep Dinodia, is a Non-Executive

Shri S L Mohan, a nominee of General

Shri Ajit S Shriram, Director (Sugar),

Shri Vimal Bhandari, is a Non-Executive

Shri S C Bhargava, a nominee of Life

Shri V.P. Agarwal

Dr. S.S. Baijal

DSCL ANNUAL REPORT 05-06

The Company is organized into strategic business units managed by professional

Mr. Sushil Baveja

DSCL ANNUAL REPORT 05-06

A section of Chlor Alkali Plant, Kota

DSCL ANNUAL REPORT 05-06

DSCL will accelerate growth and further

It is a pleasure to report another year of all round progress

The company is excited and encouraged by the progress

these measures, we believe, will enable a larger number

made in its new initiatives, i.e. Hariyali Kisaan Bazaar and

of investors to participate in the growth of the Company.

Fenesta Building Systems.

with strong growth in revenues and profits, successful

Nurturing human resources across all levels to equip them