DCW Ltd. - Annual Report - 2007-2008

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Annual Report
2007-2008
dcw_ar_2008.indd 1 5/28/2008 4:16:27 PM

‘100 YEARS OF INSPIRATION’ Sahupuram Facility
‘50 years of excellence and innovation’
The Sahupuram Chemical Complex was commissioned in 1959 as a Chlor-alkali plant in one of the
most remote corners of India in the Tuticorin District of Tamilnadu. Over the years, the Company
has expanded this facility by setting-up, a Liquid Chlorine plant, India’s first Trichloroethylene
plant, first of its kind Beneficiated Ilmenite facility in the world, a PVC Resin plant, India’s first
VCM storage facility and a Captive Power Plant. Recently a new Greenfield Caustic Soda unit was
commissioned with the latest membrane technology resulting in substantial expansion in capacity.
A new 50 MW Thermal Cogeneration Captive Power Plant is currently under the process of
being commissioned. This has not only made DCW one of the pioneers in the Chemical Industry
in India but has also facilitated the District’s industrial growth. Today, Tuticorin port is the fourth
busiest port in India and the region is attracting considerable Industrial activity. This year will
mark the 50th Anniversary of the plant which truly has been the backbone of DCW and has
played a pivotal role in the success of the Company over the years.
“Padma Bhushan”
Sahu Shriyans Prasad Jain Then
1908-1992
Our Founder Chairman
B orn on November 3 1908, Sahu Shriyans Prasad Jain

has been the most important source of inspiration to the
Company owing to which it is being run successfully even today.
Not only was Mr. Jain an industrialist far ahead of his time but
he was also a leader, a philanthropist, an activist and a visionary
whose contribution to the country in the fields of education,
health care, social welfare and commerce have been far reaching
till today. On his centenary year we wish to pay tribute to this
truly noble Indian.
Now
dcw_ar_2008.indd 2 5/28/2008 4:16:30 PM

Corporate Directory LIMITED
BOARD OF DIRECTORS AUDITORS

V. Sankar Aiyar & Co.,
Dr. Shashi Chand Jain Chartered Accountants, Mumbai.
Chairman and Managing Director
Smt. Satyawati Jain REGISTERED OFFICE

Dhrangadhra 363 315, Gujarat.
Shri F.H. Tapia

HEAD OFFICE
“Nirmal”, 3rd Floor,
Dr. V.H. Joshi
Nariman Point,
Mumbai 400 021.
Shri Yuvaraj Saheb of Dhrangadhra
BRANCH OFFICE
Shri Sushil Kumar Jalan Indra Palace, 1st Floor,
H-Block, Connaught Circus,
New Delhi 110 001.
Shri R.V. Ruia
WORKS
Shri Pramod Kumar Jain
Soda Ash Division : Dhrangadhra 363 315,
Managing Director
Gujarat.
Caustic Soda Division : Arumuganeri P.O.,
Sahupuram 628 202,
Shri Bakul Jain Tamil Nadu.
Managing Director
PVC Division : Arumuganeri P.O.,
Sahupuram 628 202,
Tamil Nadu.
Smt. Vandana Jain
Executive Director Salt Works : Kuda, Gujarat.
Arumuganeri P.O.,
Sahupuram 628 202,
Tamil Nadu.
BANKERS
Punjab National Bank
State Bank of India
69th
State Bank of Saurashtra
Annual Report
City Union Bank Ltd.
2007-2008
ING Vysya Bank Ltd.
Note: The Balance Sheet, Profit and Loss Account and Key Financial Data are also presented in US $ on
Page Numbers 15, 16 & 17 respectively.
DCW Limited • Annual Report 2007-2008 1

LIMITED Directors’ Report
TO THE MEMBERS 3. Operations: 4. Exports:
Your Directors present their 69th Sales during the year were The Company’s exports are
Annual Report and Audited Accounts Rs. 863.65 crores as compared Rs. 91.17 crores as compared to
for the Financial Year ended to Rs. 754.20 crores recorded in Rs. 71.67 crores in the previous
31st March, 2008: the previous year, registering an year. This 28.48% increase in
increase of 14.51%. The Gross exports was mainly on account of
1. Financial Results:
Profit for the year increased increase in Beneficated Ilmenite
31-3-2008 31-3-2007 from Rs. 56.69 crores to exports coupled with better
(Rs. in lacs) (Rs. in lacs)
Rs. 80.96 crores. The profit price realization on Beneficated
Sales 86,364.96 75,419.82 before tax amounted to Ilmenite.
Gross Profit 8,095.84 5,668.78 Rs. 50.93 crores as against
5. Divisionwise Performance:
Less : Provisions Rs. 31.36 crores in the previous
(a) PVC Division
Depreciation 3,002.85 2,532.88 year. After providing Rs. 4.20
The turnover of the division
crores for current taxes and
Profit before Tax 5,092.99 3,135.90 was Rs. 455.14 crores as
Rs. 0.60 crores towards Fringe
Tax: Current 575.00 347.24
compared to Rs. 372.18
benefit taxes, the profit before
crores, registering an increase
Fringe deferred tax is Rs. 46.13 crores as
Benefit Tax 60.00 73.58 of 22.29%. This increase in
against Rs. 27.60 crores. The profit
MAT Credit sales was mainly on account
after provision of deferred tax is
available for of better realization on PVC.
set off (155.00) (44.90) Rs. 35.79 crores against previous
The company sold 84142
480.00 375.92 years Rs. 20.17 crores. Deferred
MT of PVC resin compared
Tax is only a provision as per
Profit after to 76641 MT in the previous
Current Tax & guidelines and is not an outflow.
Tax Adjustments 4,612.99 2,759.98
year. All major user segments
are recording good demand
Deferred Tax 1,033.73 743.07
and PVC industry continues
Profit after Tax 3,579.26 2,016.91 to show positive growth. The
Add: Balance Government has identified
brought forward 2,440.53 3,027.73
irrigation, power and
Profit available infrastructure, as thrust areas
for Appropriation 6,019.79 5,044.64
and increased activity in these
sectors are likely to boost
Appropriations : demand of PVC Resin.
General Reserves 2,000.00 2,000.00 (b) Caustic Soda Division
Dividend The turnover of the
Interim — 345.09 division was Rs. 233.02
Final/Proposed 588.46 172.54 crores as compared to
Dividend Rs. 217.55 crores in the
Distribution Tax 100.01 86.45 previous year, registering an
Balance carried increase of 7.08% in the sales.
forward 3,331.32 2,440.56
This increase in turnover
was mainly due to better
price relisation on Caustic
2. Dividend:
Soda during the year. The
Your Directors recommend production of Caustic Soda
payment of Dividend at was 63025 MT as compared
Re. 0.30 per equity share of to 56210 MT in the previous
Rs. 2/- each. year.
2 DCW Limited • Annual Report 2007-2008

LIMITED
(c) Soda Ash Division 7.2 Thermal Power Plant 7.4 Calcium Chloride Plant
The turnover of the division The Project of Thermal Co- The capital expenditure on
was Rs. 168.16 crores as generation for generating the Calcium Chloride will
compared to Rs. 157.16 crores 50MW of power and 85 TPH be debited to a similar plant
in the previous year registering steam at its Sahupuram unit scheduled to be put up at
a growth of 7%. The company is being executed on turn key Sahupuram as an adjunct
produced 81248 MT of Soda basis by Thermax Ltd. The first to the proposed iron oxide
Ash (previous year 80816 STG of the 2 x 25 MW Cogen plant.
MT), 16050 MT of Soda Bi Set is scheduled to generate
Carb (previous year 18299 power by second half of 8. Corporate Governance:
MT) and 446 MT of Ammonia May’08 and the Second STG The report on Corporate
Bi Carbonate (previous year of the same is expected to be Governance is annexed to this
1599 MT) during the year. on stream by June / July 2008. report.
The Company also produced This Thermal Cogen Power
41316 MT of detergents plant will bring down the cost 9. Conservation of Energy,
(previous year 35913 MT). of power and steam. Technology Absorption and
Foreign Exchange Earnings and
7.3 Solway Towers at Outgo:
6. Company had in January’08 Dhrangadhra Unit Information pursuant to Section
decided to raise capital by
Solway towers installed at 217 (1) (e) of the Companies Act,
placement of equity with
the Soda Ash Unit will be 1956, read with the Companies
QIB’s. In view of the market
commissioned when the (Disclosure of Particulars in the
conditions, same has been kept
expansion of Soda Ash Plant Report of the Board of Directors)
on hold and will be taken up at
to 450 / 600 TPD is taken up. Rules, 1988 is set out in the
appropriate time. This is also
Annexure forming part of this
the view taken by corporate
Report.
sector for raising fresh / additional
capital. 10. Particulars of Employees:
Information in accordance
7. Projects Implemented and Under with Section 217 (2A) of the
Implementation Companies Act, 1956, read with
the Companies (Particulars of
7.1 Conversion of Mercury Cells Employees) Rules, 1975 is set out
to Membrane Cells in Caustic in the Annexure forming part of
Soda this Report.
The project of switching
over from the mercury cells 11. Environment and Safety
to the membrane cells for Measures:
caustic soda production, The Company is committed to
has been successfully Industrial Safety and Environment
completed during the year Protection and these are on going
with enhanced capacity from processes at the Company’s
175 TPD to 285 TPD. This is various plants. The Sahupuram
an energy efficient plant with Unit has been granted ISO 14001
considerable saving in power Certificate for complying with
consumption and no mercury environment protection and
pollution. safety.

LIMITED
12. Directors: of 4% to 5% over the next 3 years

Shri Bakul Jain, Shri S. K. specially with increased demand
Jalan and Smt. Satyawati Jain, from aluminium manufacturers.
Directors, retire by rotation
The conversion from Mercury Cell
at the forthcoming Annual
to Membrane Cell in this division
General Meeting, and being
which got completed during
eligible, offer themselves for
the year has not only resulted
reappointment.
in substantial capacity addition
13. Auditors and Auditors’ Report: but also has brought down the
consumption of power in this
M/s V. Sankar Aiyar & Co.,
division which will improve the
Chartered Accountants, Statutory
bottomline.
Auditors, of the Company retire at
the forthcoming Annual General The capacity addition in
Meeting and are eligible for Beneficiated Ilmenite with better
reappointment. Regarding the realization will help in increased
Qualification in the Auditors turnover and will also benefit the
Report, the notes to the accounts bottom line.
referred to in the Auditors Report
are self explanatory and do not Soda Ash Division:
call for any further clarificaitons.
reasonably protected from the The Soda Ash Industry continues
vagaries of business cycles of to grow at a compounded rate of
14. Cost Audit:
these products. 4 % to 5% per annum and this
In accordance with the directions trend is expected to continue
received from the Ministry of PVC Division: due to strong demand from end-
Corporate Affairs, the Cost Audit user industries with better sales
The Company, one of the six
of the Company’s Soda Ash and realization.
producers of the PVC resin, has
Caustic Soda Divisions are being
maintained its market share of
conducted for the Financial Year Internal Control Systems:
nearly 10%. With introduction
2007-2008 by Cost Auditors,
of Value Added Tax (VAT) in The Company has an adequate
M/s. N.D. Birla & Company and
Tamilnadu and Pondicherry internal control procedure
M/s. R. Nanabhoy & Company
from January’07, the Company’s commensurate with the nature
respectively. Their appointments
competitiveness and profitability of its business and size of its
were approved by the Ministry of
has improved. Also with the operations. Internal Audit is
Corporate Affairs. The Cost Audit
commissioning of Thermal Co- conducted at regular intervals.
of these Divisions is conducted
Generation plant at Company’s Internal Audit is conducted on a
every year and the Reports are
Sahupuram unit, the cost of power regular basis by an independent
submitted by the Cost Auditors to
and steam used for manufacturing firm of Chartered Accountants.
the Central Government.
PVC will come down However the Board of Directors
strengthening the bottomline. are re-examining the scope of
15. Management Discussion and
Analysis Report: Internal Audit looking into the size
Caustic Soda Division:
of operations of the Company.
Outlook: The company continues to be a
The Company has a diversified major player in South India with The reports of the internal audit
operation with three business a market share of approximately along with comments from the
segments viz. PVC, Chloro 15%. The demand for caustic soda management are placed for
Alkali and Soda Ash. It is thus is expected to grow at a steady rate review before Audit Committee.

LIMITED
The Audit Committee also of raw materials, cyclical demand Act, 1956 for safeguarding the
scrutinizes all the programmes and pricing in the Company’s assets of your Company and
and the adequacy of the internal principal markets, changes in for preventing and detecting
controls. Government regulations, tax fraud and other irregularities;
regimes, economic developments and
Human Resources: within India and other incidental (d) Prepared the Annual Accounts
The Company has been factors. on a going concern basis.
following a standard procedure
16. Directors’ Responsibility
for recruitment of best personnel 17. Insurance:
Statement:
for all the departments and is All the properties of the Company
making constant and continuous In terms of Section 217 (2AA) of
are adequately insured.
efforts to retain and groom the Companies Act, 1956 your
them to meet its present and Directors have:
18. Industrial Relations:
future requirements. The current (a) Followed in the preparation
The relations between the
strength is 2346 employees. The of the Annual Accounts,
employees and the management
Company sponsors employees the applicable accounting
were cordial and an atmosphere
for various seminars on finance, standards with proper
of understanding prevailed
operations, marketing and human explanation relating to
throughout the year.
resource development to update material departures;
their skills and develop close co- (b) selected such accounting 19. Acknowledgement:
ordination with their counterparts policies and applied them The Board places on record
in industries. This is basically consistently and made their grateful appreciation for
done to enhance their skills in judgements and estimates that the assistance and co-operation
order to achieve an optimum are reasonable and prudent received from the Financial
output from them. so as to give a true and fair Institutions and the Banks.
view of the state of affairs of
Cautionary Note: your Company at the end of
Statement in this report financial year and of the profit
describing the company’s of your Company for that
On behalf of the
objectives, projections, estimates, period;
Board of Directors
expectations and predictions may (c) taken proper and sufficient
be “forward looking statements”. care for the maintenance of Dr. Shashi Chand Jain
Actual results could differ adequate accounting records Chairman and Managing
materially from those expressed or in accordance with the Director
implied due to variation in prices provisions of the Companies Mumbai, 16th May, 2008

LIMITED Annexure to Directors’ Report
Report on Corporate Governance
(Pursuant to Clause 49 of the Listing Agreement)
A. MANDATORY REQUIREMENTS:
1. Company’s philosophy on Code of Corporate Governance:

The Company believes in the practice of good Corporate Governance. A continuous process of delegation of powers
commensurate with accountability coupled with trust, faith and transparency has been embedded in the day to day
functioning. The Company will endeavor to improve on these aspects on an ongoing basis.
2. Board of Directors:
• Size of the Board:

The Board of Directors of the Company consists of 10 Directors.
• Composition, category and their attendance at the Board meetings during the year and at the last Annual General
Meeting as also the number of other Directorships/Memberships of Committees are as follows:
Attendance Particulars
Other Committee
Category of at the Other
Name of the Director
Directorship Board Last Directorships Memberships Chairmanships
Meetings AGM
Promoter/Executive Dr. Shashi Chand Jain 7 No 4 2 —
Directors (Chairman &
Managing Director)
Shri Pramod Kumar Jain 7 Yes 1 — —
(Managing Director)
Shri Bakul Jain 5 No 2 — —
(Managing Director)
Smt. Vandana Jain 7 No — — —
(Executive Director)
Promoter/Non-Executive Smt. Satyawati Jain* 6 No — — —
Director
Non Executive and Shri Yuvaraj Saheb of 7 No — — —
Independent Directors Dhrangadhra
Shri F. H. Tapia 6 No — — —
Dr. V. H. Joshi 6 Yes — — —
Sushil K. Jalan 6 No 5 — —
Shri N. R. Ruia** 0 No — — —
Shri R. V. Ruia*** 6 NA 4 — —
* Holds 1,04,000 Equity Shares of Rs. 2 each of the Company.

** Ceased to be a Director w.e.f. April 22, 2007.
*** Appointed as a Director w.e.f. May 19, 2007.
• No. of Board Meetings held during the year along with the dates of the meeting:
During the year seven Board Meetings were held on:
20.04.2007, 19.05.2007, 19.06.2007, 24.07.2007, 24.10.2007, 15.01.2008 and 28.01.2008.
The Company placed before the Board the Annual Budget, Performance of various units and other information
from time to time as specified in Annexure of the Listing Agreement.

LIMITED
3. Audit Committee: 49 of the Listing Agreement.

• Terms of Reference:
• Composition, Name of Members and
The terms of reference of this Committee Chairperson:
cover the matters as specified for Audit
The Remuneration Committee comprises
Committees under Clause 49 of the Listing 3 Non-Executive Independent Directors.
Agreement as well as per the provisions Shri F. H. Tapia is the Chairman of
of Section 292 A of the Companies Act, this Committee. Dr. V. H. Joshi and
1956. Shri Yuvaraj Saheb of Dhrangadhra are the
• Composition, name of Members and other members of the Committee.
Chairperson: • Attendance during the year:
The Audit Committee comprises 3 There were no Remuneration Committee
Non-Executive Independent Directors. meetings during the year.
Dr. V. H. Joshi is the Chairman of this • Remuneration Policy:
Committee. Shri Yuvaraj Saheb of The Remuneration of Managing Directors
Dhrangadhra and Shri F. H. Tapia are the and Whole-time Director is approved by
other members of the Committee. the Remuneration Committee and also
• Meetings and Attendance during the year: by the Board (subject to the subsequent
approval by the Shareholders at the general
The Committee met 4 times during the year
body meeting and such other authorities
and the attendance of the Members at these
as the case may be). The remuneration is
meetings was as follows:
fixed considering various factors such as
Dates of Dr. V. H. Joshi Shri F. H. Tapia Shri Yuvaraj qualification, experience, expertise, and
Meetings Saheb of prevailing remuneration in the corporate
Dhrangadhra world, financial position of the Company etc.
19.05.2007 Yes No Yes The remuneration Structure comprises Salary,
24.07.2007 Yes Yes Yes Perquisites, Commission, and Contribution
24.10.2007 Yes Yes Yes to Provident Fund, Super-Annuation Fund
28.01.2008 Yes Yes Yes and other funds in accordance with the
4. Remuneration Committee: provisions of the Companies Act, 1956.
The Non-Executive Directors do not draw
• Terms of Reference: any remuneration from the Company
The terms of reference of this Committee besides the sitting fees for each meeting of
cover the matters as specified for the Board, Audit and Remuneration
Remuneration Committees under Clause Committees attended by them.
• Details of the remuneration paid to the Directors for the Financial year 2007-2008 is given below:
Directors Salary Benefits Contribution to Commission Sitting Fees Total
Provident Fund
& Other funds
(Rs.) (Rs.) (Rs.) (Rs.) (Rs). (Rs.)
Dr. Shashi Chand Jain 24,00,000 8,99,999 7,20,960 70,92,000 — 1,11,12,959
Shri Pramod Kumar Jain 24,00,000 8,99,949 7,20,960 70,92,000 — 1,11,12,909
Shri Bakul Jain 24,00,000 8,99,783 7,20,960 70,92,000 — 1,11,12,743
Smt. Vandana Jain 24,00,000 8,99,762 72,960 70,92,000 — 1,04,64,722
Smt. Satyawati Jain* — — — — 30,000 30,000
Shri F. H. Tapia — — — — 37,500 37,500
Dr. V. H. Joshi — — — — 40,000 40,000
Shri Yuvaraj Saheb of Dhrangadhra — — — — 45,000 45,000
Shri Sushil K. Jalan — — — — 30,000 30,000
Shri Nirmal Kumar Ruia** — — — — — —
Shri R. V. Ruia*** — — — — 30,000 30,000
* Holds 1,04,000 Equity Shares of Rs. 2 each of the Company.
** Ceased to be a Director w.e.f. April 22, 2007.
*** Appointed as a Director w.e.f. May 19, 2007.
Sitting Fee also includes payment for Board level committee meetings.

LIMITED
Dr. Shashi Chand Jain, Shri Pramod Kumar 7. Disclosures:

Jain, Shri Bakul Jain and Mrs. Vandana Jain 1. During the year, there were no transactions
are each entitled for commission @ 25% of material nature with the Promoters,
of the difference between 10% of the net Directors or the management or relatives
profits as computed under Section 349 of etc. that may have potential conflict with
the Companies Act, 1956, in a financial the interest of the Company at large.
year and the aggregate of the salary and
perquisites and benefits paid to all the 2. During the last three years, there were no
Managing Directors and Executive Director strictures or penalties imposed by either
in that year subject to the overall ceilings SEBI or the Stock Exchanges or any other
stipulated in Sections 198 and 309 of the statutory authority for non-compliance of
Companies Act, 1956. any matter related to the Capital Market.
The appointments of Managing Directors/ 3. DCW Code of Conduct:
Executive Director are contractual and are
The Board has laid down a Code of
for a period of 5 years.
Conduct for all Board Members and
The appointment of the Managing Directors/ Senior Management of the Company. The
Executive Director may be terminated by Code of Conduct is posted on the website
either party by giving a six-month notice. of the Company.
No severance fee is payable on termination
In accordance with the Securities and
of appointment.
Exchange Board of India (Prohibition
Non-Executive Directors are not paid/ of Insider Trading) Regulations, 1992
entitled for any remuneration other than as amended, the Board of Directors of
sitting fees. the Company formulated DCW Code of
Presently the Company does not have any Conduct for the prevention of Insider
Scheme for grant of any stock option either Trading in the shares of the Company by its
to the Directors or to the employees. Directors and designated employees. The
DCW Code, inter-alia, prohibits purchase/
5. Shareholders’/Investors’ Grievance Committee: sale of shares of the Company by the
Smt. Satyawati Jain, Non-executive Director is Directors and designated employees, while
the Chairperson of the Shareholders’/Investors’ in possession of unpublished price sensitive
Grievance Committee. information in relation to the Company. A
Mrs. Chital V. Shah is the Compliance Officer of system has been put in place and Directors/
the Company. Designated Employees have been advised
to take pre-clearance before purchase/sale
There were 105 complaints received from the of the Company’s shares.
shareholders during the year.
All the Complaints were resolved satisfactorily. Whistle Blower mechanism is in existence
and no personnel has been denied access
There were no pending complaints as on to the Audit Committee.
31.03.2008.
4. Compliance with Mandatory Requirements:
6. General Body Meetings:
The Company has complied with the
(i) Location and time where last 3 Annual mandatory requirements of the Code of
General Meetings held: Corporate Governance as stipulated under
Year Location Date Time No. of Special Clause 49 of the Listing Agreement with the
Resolutions
Stock Exchanges.
Passed
2004-05 Dhrangadhra, 25.08.2005 11.00 a.m. 1 Compliance with Non-Mandatory
Gujarat Requirements:
2005-06 Dhrangadhra, 06.07.2006 10.00 a.m. 1
Gujarat . (1) The Board:
2006-07 Dhrangadhra, 23.07.2007 10.00 a.m. 2 The Company has an Executive
Gujarat Chairman and hence the
(ii) No Special Resolution has been passed last requirement pertaining to
year through postal ballot. reimbursement of expenses to a
(iii) No Special Resolution is proposed to be Non-Executive Chairman does not
conducted through postal ballot. arise.

LIMITED
(2) Remuneration Committee: 9. General Shareholders information:

Please refer Item No. 4 under the ANNUAL GENERAL MEETING:
heading ‘Mandatory Requirements’.
• Day & Date - : Monday, 30th June,
(3) Shareholders’ Rights:
2008
As the Company’s Quarterly
• Time : 10.00 A.M.
results are published in English
Newspapers having circulation • Venue : at the Registered Office
all over India and in a Gujarati (at Guest House No. 2)
Newspaper circulated in Gujarat, Dhrangadhra,
the same are not sent to each Gujarat - 363 315,
household of shareholders. Financial calendar: April 2007 – March 2008:
(4) Audit qualification: Date of Book closure: : 24th June, 2008 to
The Company move towards a 30th June, 2008
regime of unqualified financial (both days inclusive)
statements.
Dividend Payment : 5th July, 2008
(5) Training of Board Members: Date
The Board of Directors consists
of professionals with expertise in Listing on Stock Exchanges:
their respective fields and industry. The Company’s shares are listed with the following
They endeavor to keep themselves Stock Exchanges: :
updated with changes in economy
and legislation. • The Mumbai Stock : Phiroze Jeejeebhoy
Exchange (BSE) Towers, Dalal Street,
(6) Mechanism for evaluating non-
Mumbai 400 023
executive Board Members:
The performance evaluation of • National Stock : Exchange Plaza Bldg.,
non-executive Directors is done by Exchange of India 5th floor, Plot No. C-1,
the Board of Directors, excluding Limited (NSE) ‘G’ Block, Bandra-Kurla
the Director being evaluated. Complex,
Near Wockhardt,
(7) Whistle Blower Policy: Mumbai 400 051
The Company has in existence a
Annual Listing fees as prescribed has been
system for the employees to report
paid to the above Stock Exchanges for the
to the Management about unethical
year 2008-2009.
behaviour, actual or suspected
fraud or violation of the Company’s GDRs of the Company are listed with the
Code of Conduct. Luxembourg Stock Exchange.
DECLARATION OF COMPLIANCE WITH

Stock Code : 500117 (BSE),
THE CODE OF CONDUCT/ETHICS:
DCW (NSE)
All the Directors and Senior Management
personnel have affirmed compliance with Demat ISIN Nos. : INE 500A01011
the Code of Conduct/Ethics as approved (Fully Paid)
and adopted by the Board of Directors.
Share Transfers : Bigshare Services Pvt.
8. Means of Communication: and other Ltd., (Unit DCW Ltd.,)
• The Quarterly results are published in Communications may E/2, Ansa Industrial
‘Financial Express’/Economics Times in all be Addressed to Estate, Sakivihar Road,
editions in India including in the Gujarati Saki Naka, Andheri (E),
edition published from Ahmedabad. These Mumbai - 400 072.
are not sent individually to the shareholders.
• The above results are also displayed Investors’ complaints : Asst. Company Secretary
on the Company’s web-site viz. may be DCW Limited
www.dcwltd.com Addressed to Nirmal, 3rd floor,
Nariman Point,
• There were no presentations made to the
Mumbai - 400 021
institutional investors or to the analysts.

LIMITED
Market price data: Shareholding Pattern as on 31.03.2008:

High/Low During each month in last Financial Category of Shareholder No. of Percent-
year: Shares age of
held Share-
NSE BSE
holding
Month/Year High Low High Low
(Rs.) (Rs.) (Rs.) (Rs.) (A) Shareholding of Promoter
and Promoter Group
April, 2007 14.20 10.15 14.15 10.01
(1) Indian
May, 2007 14.60 9.70 13.34 11.50
(a) Individuals/Hindu Undivided 30,588,164 15.59
June, 2007 14.35 10.35 12.50 11.10
Family
July, 2007 13.55 11.40 13.50 11.30
(b) Central Government/State — —
August, 2007 15.20 11.30 15.88 11.25 Government(s)
September, 2007 19.80 14.10 19.49 14.10 (c) Bodies Corporate 48,057,761 24.50
October, 2007 21.45 13.60 21.40 14.15 (d) Financial Institutions/Banks — —
November, 2007 26.25 14.65 26.15 15.50 (e) Any Others (Specify) — —
December, 2007 37.70 22.75 37.60 22.90 Sub Total (A)(1) 78,645,925 40.09
January, 2008 50.65 24.90 50.20 26.30 (2) Foreign
February, 2008 30.75 23.10 30.60 22.80 (a) Individuals — —
March, 2008 23.00 14.00 22.85 13.75 (Non-Residents Individuals/
Foreign Individuals)
Stock Performance (Indexed): (b) Bodies Corporate — —
The performance of the Company’s shares relative (c) Institutions — —
to BSE Sensex is given in the chart below: (d) Any Others (Specify) — —
Sub Total (A)(2) — —
Total Shareholding of
Promoter and Promoter
Group (A)= (A)(1)+(A)(2) 78,645,925 40.09
(B) Public shareholding
(1) Institutions
(a) Mutual Funds/UTI 27,955 0.01
(b) Financial Institutions/Banks 9,201,973 4.69
(c) Central Government/State
Government(s) — —
(d) Venture Capital Funds — —
(e) Insurance Companies — —
(f) Foreign Institutional Investors 23,937,600 12.20
(g) Foreign Venture Capital — —
Investors
(h) Any Other (specify) — —
(h-i) Foreign Banks 42,225 0.02
Sub-Total (B)(1) 33,209,753 16.93
(2) Non-institutions
(a) Bodies Corporate 14,692,607 7.49
Registrar and Share Transfer Agents: (b) Individuals 58,293,467 29.72
The Company has appointed Bigshare (c) Any Other (specify)
Services Pvt. Ltd., E/2, Ansa Industrial Estate, (c-i) Clearing Member 311,188 0.16
Sakivihar Road, Saki Naka, Andheri (East), (c-ii) NRI 1,947,985 0.99
Mumbai - 400 072 as Registrars and Share Transfer (c-iii) OCBs 5,778,145 2.95
Agents of the Company. (c-iv) Trust 20,850 0.01
(c-v) Non Domestic Company 5,920 —
The Company’s shares are traded in the Stock
Sub-Total (B)(2) 81,050,162 41.32
Exchanges compulsorily under demat mode.
(B) Total Public Shareholding
All the applications received for transfer of
(B)= (B)(1)+(B)(2) 114,259,915 58.25
physical shares are approved by the Share Transfer
TOTAL (A)+(B) 192,905,840 98.34
Committee, which normally meets twice in a
(C) Shares held by Custodian and against
month depending on the volume of transfers.
which Depository Receipts have
Share transfers are registered and returned normally
been issued 3,248,750 1.66
within 20 days from the date of lodgement,
GRAND TOTAL (A)+(B)+(C) 196,154,590 100.00
if documents are complete in all respects.

LIMITED
Dematerialisation of shares: 18,56,00,925 Equity Outstanding GDRs/ADRs/Warrants/convertible

shares held by 64,192 Shareholders comprising instruments etc.:
94.62% of the paid up Share Capital have been Outstanding GDRs as on 31st March, 2008 represent
dematerialised as on 31st March, 2008. 32,48,750 shares (1.66%). There are no further
outstanding instruments, which are convertible into
equity shares in the future.
Plant Location:
Given in the 1st page of this Annual Report.
Address for correspondence:

DCW Limited,
Nirmal, 3rd floor,
Nariman Point, Mumbai - 400 021.
Auditors Certificate on Clause 49 Compliance
The Board of Directors me for the review, and the information and explanations given
DCW LIMITED to me by the Company.
I have reviewed the records concerning the Company’s Based on such a review, in my opinion, the Company has
compliance of conditions of Corporate Governance as stipulated complied with the conditions of Corporate Governance, as
in Clause 49 of the Listing Agreement entered into, by the stipulated in Clause 49 of the said Listing Agreements.
Company, with the Stock Exchanges of India, for the financial
I further state that, such compliance is neither an assurance as
year ended 31st March, 2008.
to the future viability of the Company, nor as to the efficiency
The compliance of conditions of corporate governance is the or effectiveness with which the management has conducted the
responsibility of the management. My examination was limited affairs of the Company.
to procedures and implementation thereof, adopted by the
Company for ensuring the compliance of the conditions of the
Corporate Governance. It is neither an audit nor an expression
of opinion on the financial statements of the Company.
Ms. Kumkum R. Shah
I have conducted our review on the basis of the relevant records Place : Mumbai Company Secretary
and documents maintained by the Company and furnished to Date : 16th May, 2008. CP No. - 7455

Annexure to the
LIMITED Directors’ Report
STATEMENT CONTAINING PARTICULARS PURSUANT TO THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT
OF BOARD OF DIRECTORS) RULES, 1988 AND FORMING PART OF THE DIRECTORS REPORT.
A. CONSERVATION OF ENERGY:
1. Installation of supermisers
Supermizers, the electronic device to reduce energy consumption in three phase induction motors, are being used continuously
in all plants to save energy. So far, 201 supermizers have been installed resulting in saving of 37 lacs units during the
year.
2. Installation of energy efficient lighting

E+ tube lights are energy efficient with longer life and high lumens. Each tube consumes 28 watts, compared to conventional
tube lights which consumes 53 watts. DCW continues the conversion programme in phased manner to replace inefficient
tube lights. Also, inefficient mercury and sodium vapor lamps were replaced by highly efficient metal halide lamps. Annual
energy saving to a tune of 4.5 lacs units is achieved.
3. Fan less cooling towers

7 Nos of cooling towers have been in service and annual energy savings to a tune of 10 lacs units is achieved.
4. Cost Improvements Programme

In-house cost improvements are conducted periodically where mostly energy saving proposals are given by all departments
for implementation. During the year under report, 2 programmes were conducted and 25 suggestions resulting in annual
savings to the tune of Rs. 20 Lacs have been implemented.
B. TECHNOLOGY ABSORPTION:
1. Researches and Development:

1.1. BENEFICIATED ILMENITE
1.1.1. Process optimization to reduce cycle time and conserve energy.
As a trial, PLC system with accessories has been ordered for one digester to assess possible savings. After
optimizing the operations, will be extended for all digesters.
1.1.2 . Capacity enhancement and quality improvement for BI

Adding one more vaccum filter with accessories augmented Washing and filtration section capacity. Improved
washing arrangements made in the filter to meet overseas customers’ requirements.
1.2 PVC
1.2.1 . Trials were conducted successfully using indigenous catalyst to speed up the reaction time. Regular
implementation will be carried out after augmenting the increased Chilled Water Load.
1.2.2 . Statutory clearances are being obtained to install a new 5000 M3 Horten Sphere to store imported VCM at the
Port Premises to improve logistics.
2. Expenditure on Research & Development:
(i) Capital Rs. 43.25 lacs

(ii) Recurring Rs. 10.43 lacs
Rs. 53.68 lacs
(iii) Total Research & Development Expenditure as a percentage of total turnover (Net of Excise) : 0.07 percentage.
Technology Absorption, Adaptation and Innovation :
Continuos efforts are made towards technology absorption, adaptation and innovation. The emphasis is on improving
the quality of the finished product and reducing energy consumption.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars regarding foreign exchange earnings and outgo appear in Schedule 6 forming part of the Profit and Loss Account.

LIMITED
REQUISITE DATA IN RESPECT OF ENERGY CONSUMPTION

(A) Power and Fuel Consumption
Caustic Soda Unit PVC Unit Soda Ash Unit
Particulars Current Previous Current Previous Current Previous

Year Year Year Year Year Year
2007-2008 2006-2007 2007-2008 2006-2007 2007-2008 2006-2007
1. ELECTRICITY
(a) Purchased
Unit (Lakh Kwh) 24.86 – 11.05 3.11 38.44 37.77
Total Amount 117.74 – 68.78 22.29 197.33 192.68
(Rs. in lakhs)
Rate/Unit (Rs.) 4.74 – 6.22 7.16 5.13 5.10
(b) Own Generation
(i) Through Diesel Generator
Unit (Lakh Kwh) 1,968.52 1,942.80 199.95 153.50 – –
Unit/ltr of LSHS/Diesel Oil 4.50 4.43 1.79 4.43 – –
Cost/Unit (Rs.) 4.65 4.63 4.65 4.63 – –
(ii) Through Steam Turbine Generator
Unit (Lakh Kwh) – – – – 245.19 238.25
Unit/ltr. of Fuel Oil/Gas – – – – – –
Cost/Unit (Rs.) – – – – – –
2. Coal (specify quality and where used)
Quantity (MT) – – – – 1,501 –
Total cost – – – – 71.78 –
Average rate – – – – 4,782 –
3. FURNACE OIL/LSHS/LSFO
Quantity (Kl) 48,185.63 47,280.26 7,651.55 3,640.14 – –
Total Amount
(Rs. in Lakhs) 10,280.53 9,680.46 923.62 630.34 – –
Average Rate (Rs.) 17,516.37 17,303.34 12,070.97 17,316.45 – –
4. OTHERS
(i) Hydrogen
Quantity (MT) – 89.513 – – – –
Total Amount (Rs. in lakhs) – 42.92 – – – –
Rate/Unit (Rs.) – 47,947.41 – – – –
(ii) Lignite
Quantity (MT) – – – – 1,13,671 1,13,859
Total Amount (Rs. in Lakhs) – – – – 2,026.70 1,746.96
Rate/Unit (Rs.) – – – – 1,783 1,534
(iii) HSD
Quantity (MT) 11.61 11.03 5.74 3.77 – –
Total Amount (Rs. in lakhs) 4.56 4.35 2.25 1.49 – –
Rate/Unit (Rs.) 39,292.03 39,489.90 39,292.03 39,489.90 – –

LIMITED
(B) Consumption per unit of Production
Caustic Soda Unit PVC Unit Soda Ash Unit
Particulars Current Previous Current Previous Current Previous

Year Year Year Year Year Year
2007-2008 2006-2007 2007-2008 2006-2007 2007-2008 2006-2007
1. Electricity (Kwh) 1,335,912 3,026 239 229 255 241
2. Fuel Oil (MT) 1.353 0.175 0.749 0.054 – –
3. Coal (MT) – – – – 0.017 –
4. Others
(i) Hydrogen (Kgs.) – 4.12 – – – –
(ii) LSHS (MT) – – – – – –
(iii) Lignite (MT) – – – – 1.042 0.926
(iv) HSD (Litre) 0.0001 0.0001 – – – –
Annexure to the Directors’ Report

Information as per Section 217 (2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975 and forming part of the Director’s Report
Name Designation/ Remuneration Qualification Experience Date of Age Last employment held.
Nature of duties (Years) commence- Name of the Company,
ment of Designation and period
(Rupees) Employment (Years) of service
Employed for whole of the year
Dr. Shashi Chand Jain Chairman & Managing 1,11,12,959 Ph.D (Economics) 52 01.04.1969 75 Sahu Brothers (Saurashtra)
Director Pvt. Ltd. Director – 11 years
Shri Pramod Kumar Jain Managing Director 1,11,12,909 B.A. (Hon.) 49 01.04.1969 70 Sahu Brothers (Saurashtra)
Economics Pvt. Ltd.
Shri Bakul Jain Managing Director 1,11,12,743 B.Com., MBA 24 01.09.1984 53 —
Smt. Vandana Jain Executive Director 1,04,64,722 B.Com 02 01.08.2006 72 —
Employed for part of the year
Shri M. Varadarajan Manager (Elec.-PVC) 3,67,614.69 B.Tech (Elec.) 18 21.11.1988 54 Graphite India Ltd. –
2 years
Shri A. Stephen Corera Dy. Plant Manager 6,10,498.92 B.Sc. (Maths) 24 01.06.1983 58 Plastic Resins & Chemicals
(PVC) Ltd. – 3 years
Shri R. Jeyasingh Foreman 2,07,068.78 SSLC passed & ITI 38 01.07.1979 58 Nil
Sheet Metal
Shri. C.R. Balachandran Manager 6,22,007.33 B.Com., DPM 26 16.09.1981 57 India Forge Ltd. – 12 years
Shri G. Thilaka Roy General Manager 8,13,741.39 B.E. (Mech.) 15 10.01.1992 51 Neyveli Lignite Corporation
(Power Project) – 11 years
Notes :
1. In case of Managing Directors and Executive Director the gross remuneration shown above (subject to tax) comprise salary, Perquisites, Commission,
Company’s contribution to Provident Fund, Superannuation Fund and Gratuity Fund.
2. In case of other employees, the gross remuneration shown above (subject to tax) comprise salary, perquisites, Company’s Contribtion to Provident
Fund and gratuity paid.
3. The nature of employment of the Managing Directors & the Executive Director is contractual.
4. Dr. Shashi Chand Jain, Shri Pramod Kumar Jain, Shri Bakul Jain – Managing Directors and Smt. Vandana Jain – Executive Director, are related to
Smt. Satyawati Jain – Director of the Company.

Balance Sheet LIMITED
AS AT 31ST MARCH, 2008

As at As at
31/03/2008 31/03/2007
US $ in Millions* US $ in Millions#
SOURCES OF FUNDS
Shareholders Funds:
Capital 9.78 7.94
Reserves & surplus 67.13 50.54
Loan Funds:
Secured Loans 95.35 45.83
Unsecured Loans 0.01 3.33
Deferred Tax Liability:
Deferred Tax Liability 18.99 15.23
Deferred Tax Asset (0.67) (0.71)
18.32 14.52
TOTAL 190.59 122.16
APPLICATION OF FUNDS
Fixed Assets:
Gross Block 209.43 138.44
Less: Depreciation 69.88 65.53
139.55 72.91
Capital Work-in-progress 37.78 41.39
177.33 114.30
Investments 3.19 0.11
Current Assets, Loans and Advances:
Inventories 31.09 16.19
Sundry Debtors 16.15 14.60
Cash and Bank balances 2.43 (1.02)
Loans and advances 16.29 20.63
65.96 50.40
Less: Current liabilities and Provisions
Liabilities 51.97 39.09
Provisions 3.92 3.56
55.89 42.65
Net Current Assets 10.07 7.75
TOTAL 190.59 122.16
* 1 US $ = Rs. 40.10
# 1 US $ = Rs. 43.48

LIMITED Profit & Loss Account
FOR THE YEAR ENDED 31ST MARCH, 2008
For the year ended For the year ended
31/03/2008 31/03/2007
US $ in Millions* US $ in Millions#
INCOME
Sales (including Excise Duty) 215.37 173.46
Less : Excise Duty 28.85 21.03
186.52 152.43
Other income 3.14 3.76
189.66 156.19
EXPENDITURE
Manufacturing and other expenses 166.12 141.61
Interest & Finance Charges 3.36 1.54
169.48 143.15
Profit Before Depreciation 20.18 13.04
Depreciation 7.49 5.82
Profit Before Tax 12.69 7.22
Provision For Tax
Current tax 1.43 0.80
Fringe Benefit Tax 0.15 0.17
MAT Credit Available for Set off (0.39) (0.10)
Tax Adjustment of Previous Year — —
Profit after Current Tax & Tax Adjustments 11.50 6.35
Deferred Tax 2.58 1.71
Profit After Deferred Tax 8.92 4.64
Add : Surplus brought forward from last year 6.09 6.96
15.01 11.60
APPROPRIATION
Transfer to General Reserve 4.99 4.60
Interim Dividend on Equity Shares — 0.79
Final/Proposed Dividend on Equity Shares 1.47 0.40
Tax on Dividend 0.25 0.20
Profit Carried forward 8.30 5.61
* 1 US $ = Rs. 40.10
# 1 US $ = Rs. 43.48

Key Financial Data LIMITED
2007-2008 2006-2007
Rs. in US $ in Rs. in US $ in
Millions Millions* Millions Millions#
Gross Sales 8,636.50 215.37 7,541.98 173.46
Fixed Assets – Gross Block 8,398.32 209.43 6,019.42 138.44
Net Block 7,111.06 177.33 4,969.66 114.30
Export Earnings 911.17 22.72 716.70 16.48
Earning Before Depreciation and Interest 944.42 23.55 633.94 14.58
Interest 134.83 3.36 67.06 1.54
Earnings Before Depreciation 809.59 20.19 566.88 13.04
Depreciation 300.29 7.49 253.29 5.83
Earnings Before Tax 509.30 12.70 313.59 7.21
Taxation
Current 57.50 1.43 34.72 0.80
Fringe Benefit Tax 6.00 0.15 7.36 0.17
MAT Credit available for set off (15.50) (0.39) (4.49) (0.10)
Tax adjustment of previous year – – – –
Deferred Tax 103.37 2.58 74.31 1.71
Earnings After Tax 357.93 8.93 201.69 4.64
No. of shares of Rs. 2/- each

(Million Nos.) @ 196.15 196.15 172.54 172.54
Earnings per Shares ( Rs. / US $ ) 1.82 0.05 1.17 0.03
Net Worth (Excl. Revaluation Reserve) 2,990.84 74.58 2,418.44 55.62
Book value per share 15.25 0.38 14.02 0.32
Gross profit to sales (%) 9.37 9.37 7.52 7.52

(Earnings Before Depreciation)
Interest coverage Ratio 7.00 7.00 9.45 9.45
Debt/Equity 1.24:1 1.24:1 0.84:1 0.84:1
Current Assets/Current Liabilities 1.18 1.18 1.18 1.18
* 1 US $ = Rs. 40.10
# 1 US $ = Rs. 43.48

LIMITED Auditor’s Report
AUDITOR’S REPORT TO THE matters specified in paragraphs 4 and clause (g) of sub-section (1) of
SHAREHOLDERS OF DCW LIMITED 5 of the said Order. Section 274 of the Companies
Act, 1956;
1. We have audited the attached 4. Further to our comments in the
Balance Sheet of DCW Limited as at Annexure referred to in paragraph 3 (vi) In our opinion and to the best of
31st March, 2008 and also the Profit above, we report that: our information and according
and Loss Account and Cash Flow (i) We have obtained all the to the explanations given to us,
Statement of the Company for the year information and explanations, the said accounts subject to
ended on that date, annexed thereto. which to the best of our our observation in para 4(iv)
These financial statements are the knowledge and belief, were above which has consequential
responsibility of the Company’s necessary for the purposes of impact of Rs. 225.82 lacs on
Management. Our responsibility is to our audit; profits of the year and reserves
express an opinion on these financial and Note B 20 of Schedule
(ii) In our opinion, proper books
statements based on our audit. ‘N’ to the Accounts which
of account as required by law,
has the effect of not disclosing
2. We conducted our audit in have been kept by the Company
the respective liabilities/assets
accordance with auditing standards so far as appears from our
indicated therein and showing
generally accepted in India. Those examination of those books;
the total assets and total
Standards require that we plan (iii) The Company’s Balance Sheet, liabilities lesser to the extent of
and perform the audit to obtain Profit and Loss Account and Rs.5535 lacs and read with the
reasonable assurance about whether Cash Flow Statement dealt with Significant Accounting Policies
the financial statements are free by this Report are in agreement and other notes thereon, give
of material misstatement. An audit with the books of account; the information required by
includes examining, on a test basis, the Companies Act. 1956 in
(iv) In our opinion, the Balance
evidence supporting the amounts the manner so required and
Sheet, Profit and Loss Account
and disclosures in the financial give a true and fair view in
and Cash Flow Statement
statements. An audit also includes conformity with the accounting
dealt with by this report
assessing the accounting principles principles generally accepted
comply with the Accounting
used and significant estimates in India:
Standards referred to in sub-
made by management, as well as section (3C) of Section 211
evaluating the overall financial (a) In the case of the Balance
of the Companies Act, 1956,
statement presentation. We believe Sheet, of the state of affairs
to the extent applicable;
that our audit provides a reasonable of the Company as at 31st
except as indicated in Note
basis for our opinion. March, 2008,
B–14 of Schedule ‘N’ to the
3. As required by the Companies Accounts.
(b) In the case of the Profit
(Auditor’s Report) Order, 2003 and (v) On the basis of written and Loss Account, of the
read together with the Companies representations received from profit for the year ended
(Auditor’s Report) Amendment the Directors as on 31st March, on that date, and
Order, 2004 (hereinafter referred to 2008, and taken on record
as the Order) issued by the Central by the Board of Directors, we (c) In the case of the Cash
Government of India in terms of sub- report that none of the Directors Flow Statement of the cash
section (4A) of Section 227 of the is disqualified as on 31st March, flows for the year ended
Companies Act, 1956, we enclose 2008 from being appointed on that date.
in the Annexure a statement on the as a Director in terms of

For V. Sankar Aiyar & Co.,
Chartered Accountants.
S. Venkatraman
Place : Mumbai Partner
Dated : 16th May, 2008. Membership No. 34319

LIMITED
ANNEXURE REFERRED TO IN (c) In our opinion, the company such transactions exceeding
PARAGRAPH 3 OF AUDITOR’S REPORT is maintaining proper records the value of Rupees Five Lacs
TO THE SHAREHOLDERS OF DCW of inventories and no material in respect of any party in the
LIMITED ON THE ACCOUNTS FOR THE discrepancies were noticed financial year.
YEAR ENDED 31ST MARCH 2008. on physical verification as
compared to the record of vi. In our opinion and according to the
i. (a) The Company has maintained inventories. information and explanations given to
proper records showing parti- us, the Company has complied with
culars including quantitative iii. Based on the audit procedures the provisions of the Sections 58A,
details and situation of fixed applied by us and according to the 58AA and other relevant provisions
assets. information and explanations given of the Companies Act, 1956 and
to us, the Company has not granted the rules framed thereunder, with
(b) We are informed that the fixed or taken any loans, secured or regard to deposits accepted from the
assets have been physically unsecured, to/from companies, firms public.
verified by the Management or other parties listed in the register
with the assistance of external maintained under Section 301 of the
We are informed by the Management
agencies during the year. In Companies Act, 1956.
that no order has been passed by the
our opinion the frequency of Company Law Board or National
verification is reasonable. As iv. In our opinion and according to the Company Law Tribunal or Reserve
per the information given to us information and explanations given to Bank of India or any Court or any
by the management, no material us, having regard to the explanation other Tribunal under Sections 58A
discrepancies as compared to that for purchase of certain raw and 58AA of the Companies Act,
book records were noticed in materials, stores, components, and 1956.
respect of fixed assets verified fixed assets, alternative sources of
during the year supply are limited with reference vii. The Company has, in general, an
to quality, delivery schedules, internal audit system commensurate
(c) Since there is no disposal of credit period and some of the items with the size and nature of the
a substantial part of fixed purchased are of special nature, Company’s business.
assets during the year, the and hence comparable alternative
preparation of financial quotations are not available for these,
statements on a going concern viii. We have broadly reviewed the
there are adequate internal control
basis is not affected on this books of account maintained by the
procedures commensurate with the
account. Company pursuant to the rules made
size of the Company and the nature
by the Central Government for the
of its business for the purchase of
maintenance of cost records under
ii. (a) The inventories of finished inventories and fixed assets and
Section 209(1)(d) of the Companies
goods (except goods lying for the sale of goods and services.
Act, 1956 and are of the opinion that,
with consignees and in During the course of our audit, we
prima facie, the prescribed accounts
transit), stores, spare parts and have not observed any continuing
and records have been made and
raw materials (except salt at failure to correct major weaknesses
maintained. We have not, however,
Sahupuram and stock in transit) in the internal control system.
made a detailed examination
have been physically verified of these records with a view to
by the management with the v. (a) Based on the audit procedures determine whether they are accurate
help of external agencies. In applied by us, to the best of or complete.
our opinion, the frequency our knowledge and belief and
of physical verification is according to the information ix. (a) According to the records of the
reasonable and explanations given to Company, undisputed statutory
us, particulars of contracts or dues including provident
(b) In our opinion, the procedures arrangements referred to in fund, investor education and
of physical verification of Section 301 of the Companies protection fund, employees’
inventories (except finished Act, 1956, have been entered state insurance, income tax,
goods lying with consignees in the register required to be sales tax / VAT, wealth tax,
and in transit) followed by the maintained under that Section. service tax, custom duty, excise
management are reasonable duty, cess and other material
and adequate in relation to the (b) Sub-clause (b) of sub-para (v) statutory dues that are required
size of the company and the of para 4 of the Order is not to be deposited regularly
nature of its business. applicable as there are no with authorities, have generally

LIMITED
been regularly deposited with x. The Company does not have any xiii. The Company is not a chit fund or
the appropriate authorities. accumulated losses at the end of the a nidhi or a mutual benefit society.
According to the information financial year. The Company has Therefore the provisions of sub- para
and explanations given to us, not incurred any cash losses during (xiii) of para 4 of the Order are not
no undisputed amounts in the financial year covered by our applicable to the Company.
respect of the aforesaid statutory audit and the immediately preceding
dues were in arrears, as at financial year. xiv. In respect of shares, securities and
31st March, 2008, for a period other investments dealt in or traded
of more than six months xi. On the basis of verification of by the Company, proper records
from the date they became records and according to the have been maintained of the
payable. information and explanations given transactions and contracts and timely
to us, the Company has not defaulted entries have been made therein.
(b) According to the information in repayment of dues to Financial All the investments are held by the
and explanations given to us Institutions/Banks or Debenture Company in its own name except to
and the records of the Company, holders. the extent of the exemption granted
the dues of sales tax/income under section 49 of the Companies
tax/customs duty/wealth tax/ xii. The Company has not granted any Act, 1956.
service tax/excise duty/cess, loans and advances on the basis
which have not been deposited of security by way of pledge of xv. According to the information and
on account of any dispute are shares, debentures and other explanations given to us, the Company
as follows: securities. has not given any guarantee for any

(Rs. in lacs)
Name of the Statute/ Period Forum where Dispute is pending

Nature of Dues
Supreme High Appellate Appellate State Grand
Court Court Tribunal* Authority** Govern- Total
ment
Customs Act, 1962 (Customs Duty 1997 to 2007 — — 127.05 — — 127.05

Including Penalty & Interest,
wherever applicable)
Central Excise Act, 1944 (Excise 1997 to 2007 — 49.57 154.04 100.06 — 303.67
Duty Including Penalty & Interest,
Sales Tax Legislations 1982 to 2007 — 246.20 530.67 147.88 — 924.75

(Sales Tax, including Penalty &
Interest, wherever applicable)
Local cess, Local cess surcharge 1989 to 2007 — 0.69 — — 12.69 13.38
(Land Revenue Including
Penalty and Interest,
Grand Total — 296.46 811.76 247.94 12.69 1,368.85
* Appellate Tribunal includes STAT, CESTAT and ITAT
** Appellate Authority includes Commissioner Appeals, Assistant Commissioner Appeals, Deputy Commissioner Appeals, Joint
Commissioner Appeals and Deputy Commissioner Commercial Taxes Appeals.

LIMITED
loans taken by others from any bank short-term basis have, prima facie, security or charge in respect thereof
or financial institution. not been used during the year for does not arise.
long-term investment.
xx. The Company has not made
xvi. In our opinion, the term loans taken
xviii. The Company has made preferential any public issue of any securities
during the year have, prima facie,
allotment of shares during the year to during the year and therefore the
been applied for the purpose for
a company in the register maintained question of disclosing the end-use
which they were raised.
under section 301 of the Companies of money raised by any public issue
Act, 1956. In our opinion, the price does not arise.
xvii. According to the information and at which shares have been issued is
explanations given to us, based not prejudicial to the interest of the xxi. We are informed that during the
on an overall examination of the Company. year, no instances of material
balance sheet of the Company, fraud on or by the Company have
related information made available xix. The Company has not issued any been noted or reported by the
to us and as represented to us by debentures during the year and management.
the Management, funds raised on therefore the question of creating

For V. Sankar Aiyar & Co.,
Chartered Accountants.
S. Venkatraman
Dated : 16th May, 2008. Membership No. 34319

LIMITED Balance Sheet
Schedule As at As at
31/03/2008 31/03/2007
Rs. in lacs Rs. in lacs
SOURCES OF FUNDS
Shareholders’ Funds :
Capital A 3,923.09 3,450.89
Reserves and Surplus B 26,917.88 21,973.99
Loan Funds :
Secured Loans C 38,233.96 19,926.33
Unsecured Loans D 4.92 1,448.52
Deferred tax liability
(Refer Note B - 5 of Schedule - N)
Deferred tax liability 7,612.03 6,620.53
Less : Deferred tax asset (267.13) (309.36)
7,344.90 6,311.17
45,583.78 27,686.02
TOTAL 76,424.75 53,110.90
Fixed Assets :
Gross Block E 83,983.17 60,194.16
Less : Depreciation 28,020.94 28,491.76
55,962.23 31,702.40
Capital Work-in-progress 15,100.04 17,387.60
Machinery/spares for erection and replacement 48.29 606.63
71,110.56 49,696.63
Investments F 1,278.27 46.64
Current Assets, Loans and Advances
Inventories G 12,466.74 7,037.28
Sundry Debtors H 6,475.13 6,348.15
Cash and Bank Balances I 973.46 (443.63)
Loans and Advances J 6,532.89 8,969.32
26,448.22 21,911.12
Less: Current Liabilities and Provisions
Liabilities K 20,838.68 16,997.26
Provision L 1,573.62 1,546.23
22,412.30 18,543.49
Net Current Assets 4,035.92 3,367.63
Contingent Liabilities not provided for M
Significant Accounting Policies and N
Notes forming part of
Balance Sheet and Profit and Loss Account
TOTAL 76,424.75 53,110.90
As per our Report attached For and on behalf of the Board
For V. Sankar Aiyar & Co. Dr. Shashi Chand Jain Dr. V. H. Joshi
Chartered Accountants Chairman & Managing Director
Yuvaraj Saheb of Dhrangadhra
Pramod Kumar Jain
S. Venkatraman Vandana Jain Bakul Jain Sushil Kumar Jalan
Partner Executive Director Managing Directors R. V. Ruia
Place : Mumbai Chital V. Shah T. M. Bhandari Satyawati Jain
Date : 16th May, 2008 Asstt. Company Secretary Sr. Vice President (Finance) Directors

Profit and Loss Account LIMITED
FOR THE YEAR ENDED 31ST MARCH, 2008

Schedule For the year ended For the year ended
31/03/2008 31/03/2007
INCOME
Sales ‘1’ 86,364.96 75,419.82
Less : Excise Duty (11,568.62) (9,146.03)
Net Sales 74,796.34 66,273.79
Other Income ‘2’ 1,260.75 1,635.57
76,057.09 67,909.36
EXPENDITURE
Manufacturing and Other expenses ‘3’ 66,612.91 61,570.00
Interest & Finance Charges (Net) ‘4’ 1,348.34 670.58
67,961.25 62,240.58
Depreciation ‘5’ 3,002.85 2,532.88
70,964.10 64,773.46
Profit before tax 5,092.99 3,135.90
Current Tax 575.00 347.24
Fringe Benefit Tax 60.00 73.58
MAT Credit Available for set off (155.00) (44.90)
Profit after Current Tax & Tax Adjustments 4,612.99 2,759.98
Deferred Tax (Refer Note B - 5 of Schedule N) 1,033.73 743.07
Profit after Deferred tax 3,579.26 2,016.91
Add : Surplus brought forward from last year 2,440.53 3,027.73
Available for appropriation 6,019.79 5,044.64
APPROPRIATION
Transfer to General Reserve 2,000.00 2,000.00
Interim Dividend on Equity Shares — 345.09
Proposed Dividend/Final on Equity Shares 588.46 172.54
Tax on Proposed/Final Dividend 100.01 86.45
2,688.47 2,604.08
Profit Carried forward 3,331.32 2,440.56
Notes to Profit & Loss Account ‘6’

Earning per share (Face Value Rs. 2)
Basic 1.82 1.17
Diluted 1.90 1.17
Pramod Kumar Jain

LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2008
2007-08 2006-07
Rs. in Lacs Rs. in Lacs
A. Cash flow from operating Activities
Net profit before tax and extraordinary items 5092.99 3135.88
Adjustments for :
Non-cash items 49.83 (823.72)
Depreciation 3002.85 2532.88
Interest (net) 1348.34 541.72
Dividend income (36.83) 4364.19 (98.36) 2152.52
Operating profit before working capital changes 9457.18 5288.40
Adjustments for :
Trade and other receivables 2464.45 (4592.68)
Inventories (5429.46) 5046.20
Current liabilities and provisions 3738.42 773.41 1534.95 1988.47
Cash generation from operations 10230.59 7276.87
Direct taxes paid (731.93) (146.17)
Cash flow before Extraordinary items 7130.70
Extraordinary items — —
Net cash flow from operating Activities 9498.66 7130.70
B. Cash flow from Investing Activities
Purchase of fixed Assets (25345.90) (19307.09)
Sale of Fixed Assets 570.59 3007.69
Purchase / Sales of Investments (1231.63) 1063.20
Dividend Income 36.83 98.36
Interest income 108.67 163.78
Net cash used in investing Activities (25861.44) (14974.06)
C. Cash from financing activities
Proceeds from issue of share capital 2834.00 —
Repayment of loans (3402.86) (2682.86)
Repayment of Other borrowings (57.83) (97.73)
Proceeds from Long Term Borrowings 20469.20 12900.23
Proceeds from Short Term Borrowings (144.48) —
Interest paid (1312.56) (1256.35)
Dividend paid (517.63) (517.63)
Tax on dividend (87.97) (71.08)
Net cash used in financing Activities 17779.87 8274.58
Net increase in Cash and Cash equivalents 1417.09 431.22
Cash & Cash Equivalents as at 1st April 2007 (443.63) 957.73
Cash & Cash Equivalents as at 31st March 2008 973.46 1388.95
1417.09 431.22
Previous year figures have been regrouped to match with current year figures
Pramod Kumar Jain

Schedules LIMITED
FORMING PART OF THE BALANCE SHEET

As at As at
31/03/2008 31/03/2007
SCHEDULE “A”
SHARE CAPITAL
Authorised Capital
32,50,00,000 Equity Shares of Rs. 2/- each
(Previous Year 32,50,00,000 Equity Shares of Rs. 2/-
each) 6,500 6,500
TOTAL 6,500 6,500
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

19,61,54,590 Equity Shares of Rs 2/- each
(Previous Year 17,25,44,590 shares of Rs. 2/-each) 3,923.09 3,450.89
TOTAL 3,923.09 3,450.89
Notes :
Of the Equity Shares
(1) The following Shares were allotted as fully paid-up without payment being received in cash:-
(a) 5,25,000 Shares to Vendors
(b) 4,550 Shares to Equity Shareholders of the erstwhile, PRC Limited, pursuant to the amalgamation with the Company.
(2) 3,74,50,985 Shares were allotted as fully paid up Bonus Shares by Capitalisation of Capital Redemption Reserve, Share Premium
Account and General Reserve.
(3) 2,66,66,550 Shares were issued and allotted consequent to conversion of Part A of the 26,66,655 partly convertible debentures
allotted in April, 1992.
(4) 4,61,25,000 Shares were issued in 1994-95 against which Global Depository Receipts were issued by the Depository viz.
Citi Bank, USA.
(5) 2,80,94,525 shares were issued and allotted pursuant to Rights issue made during 2000-01.
(6) During the year company has issued and allotted 40,00,000 Nos., of shares on preferential basis to Promoters and 1,96,10,000
Nos., of equity shares on preferential basis to FII’s.

LIMITED Schedules
As at As at
31/03/2008 31/03/2007
SCHEDULE “B”
RESERVES AND SURPLUS
CAPITAL RESERVE
As per last balance sheet 355.83 355.83
Add : Transfer from Contribution for Capital Expenditure 51.05 51.05
406.88 406.88
CAPITAL REDEMPTION RESERVE

As per last Balance sheet 5.30 5.30
SHARE PREMIUM
As per last balance sheet – 7,079.70 9,440.70 7,079.70
Add: Received during the year – 2,361.00
REVALUATION RESERVE
As per last balance sheet 1,240.50 1,321.89
Less : Transferred to Profit and Loss Account 307.86 81.38
932.64 1,240.51
GENERAL RESERVE
Add : Transfer from P&L account 2,000.00 2,000.00
12,801.04 10,801.04
CONTRIBUTION FOR CAPITAL EXPENDITURE

As per last balance sheet — 51.05
Less : Transfer to Capital Reserve — 51.05
— —
Profit and loss Account 3,331.32 2,440.56
TOTAL 26,917.88 21,973.99

Schedules LIMITED

As at As at
31/03/2008 31/03/2007
SCHEDULE “C”
SECURED LOANS
Banks
Rupee Term loans 22,200.52
Foreign Currency Term loans 8,019.98
30,220.50 17,426.90
Working Capital Loans 337.03 (961.36)
Other Loans
Financial Institutions 6,426.43 1,714.29
Term Loans from NBFC 1,250.00 1,746.50
TOTAL 38,233.96 19,926.33
Notes :
LOANS Secured by
Banks Working Capital facilities are secured by a first charge by way of hypothecation and/or pledge of current assets, namely,
stocks of materials, semi-finished and finished goods, consumable stores and spares including machinery spares not
capitalized, bills receivable and book debts and further secured by a second charge by way of hypothcation over all
of movable plant and machinery and by way of mortgage by deposit of title deeds over the immovable properties,
both present and future, such mortgage to rank second to the mortgages created/to be created in favour of Term
Loan Lenders viz., Banks / Financial Institutions.
Term Loans and External Commercial Borrowings from Banks are secured by a pari-passu first charge by way of
hypothecation of movable fixed assets of the Company, including movable machinery spares, stores and further
secured by mortgage on all the immovable properties of the Company situated in the states of Tamilnadu and Gujarat
on first pari passu charge basis.
Other loans Equipments Finance Loan from a Financial Institution and term loan from NBFC are secured by creation of first pari-
passu charge on all the movable fixed assets, both present and future by way of hypothecation and further secured
by mortgage on all the immovable properties situated in the states of Tamilnadu and Gujarat on first pari-passu
charge basis.
As at As at
31/03/2008 31/03/2007
SCHEDULE “D”
UNSECURED LOANS
Short Term Loans – Banks — 1,442.87
Others
Deferred Sales Tax Credit 4.92 5.65
TOTAL 4.92 1,448.52
Due within one year Rs. 1.79 lacs (Previous Year Rs. 1,443.60 lacs)

28
Schedules
LIMITED
SCHEDULE “E” (consolidated)

FIXED ASSETS
Rs. in Lacs
GROSS BLOCK DEPRECIATION NET BLOCK
Description of At cost or Additions Sales and At cost or Depreciation Depreciation As at As at
Assets Revalued and other other Revalued For The As at 31-03-2008 31-03-2007
Book Value transfers deduc- Book Value Year 31-03-2008
as at tions as at
01-04-2007 31-03-2008
Land 456.19 1.65 — 457.83 — — 457.83 456.19
Buildings 5,206.03 1,210.92 8.20 6,408.73 132.15 1,953.31 4,455.42 3,367.87
Plant and Machinery 52,842.29 26,791.21 4,337.54 75,295.96 2,766.83 25,093.76 50,202.20 27,063.86
Furniture & Fittings 636.41 70.41 0.92 705.88 37.58 529.26 176.63 143.71
Railway Sidings — — — — — — — —
DCW Limited • Annual Report 2007-2008

Vehicles 1,053.25 117.62 56.13 1,114.75 89.99 444.61 670.14 670.76
TOTAL 60,194.17 28,191.80 4,402.81 83,983.16 3,026.55 28,020.94 55,962.22 31,702.40
Previous Year 59,978.53 5,082.09 4,866.46 60,194.16 2,565.49 28,491.76 31,702.40 31,466.09
Notes:
1. See Note “B-2” of Schedule “N”.

2. Buildings include Rs. 523.06 lacs being cost of ownership flats and office accommodation in Co-operative Societies and a Limited Company against which the
Company holds shares of the face value of Rs. 0.77 lacs in Co-operative Societies and the Limited Company.
3. Land includes the leasehold land valued at Rs. 70.99 lacs.
4. Assignment deeds in respect of 9.13 acres of Land at Caustic Soda Division, transferred by Central Government to the State Government, are yet to be executed
by the State Government in favour of the Company.
5. Land, Building and Plant and Machinery located at Sahupuram Works (other than PVC Division) were revalued on 31.03.1993.
6. The Company exercised the option to purchase 793.39 acres of land leased by the State Government at Sahupuram works. Assignment deeds in respect of the said
land are yet to be executed by the State Government in favour of the Company.
Schedules LIMITED

SCHEDULE “F” As at 31/03/2008 As at 31/03/2007
Face No. of Shares/ Amount Face No. of Amount
Value per Bonds Rs. in Value Shares/ Rs. in
INVESTMENTS (At Cost) Share/ Lacs per Share/ Bonds Lacs
Unit Unit/
Bond Rs. Bond Rs.
I. LONG TERM :
In Subsidiary Company-Non-Trade
(Unquoted)
M/s. DCW Pigment Ltd. 10 4,950 4.95 — — —
In Govt & Trust Securities Unquoted
7 years National Savings Certificates 1,000 10 0.10 1,000 10 0.10
In other Companies-Non-Trade (Unquoted)
The Dhrangadhra Peoples Co-op. Bank Ltd. 25 10 *250 25 10 *250
In Govt & Trust Securities (Quoted)
Unit Trust of India - 6.75 % Tax Free Bonds 100 19,358 19.36 100 19,358 19.36
Less : Diminution value of Bonds 19,358 — — 19,358 0.10
19.36 19.26
In other Companies-Non-Trade (Quoted)

Fully paid Equity Shares
Global Trust Bank Ltd. 10 19,000 1.90 10 19,000 1.90
LIC Housing Finance Ltd. 10 17,400 10.44 10 17,400 10.44
12.34 12.34
Less : Diminutions value of shares of Global
Trust Bank 19,000 1.90 19,000 1.90
10.44 10.44
II. CURRENT INVESTMENTS :
Tata Consultancy Services Ltd. 1 6 0.03 1 6 0.03
Reliance Petroleum Ltd. 10 28,040 16.82 10 28,040 16.82
16.85 16.85
MUTUAL FUNDS
Principal Mutual Fund - Floating Rate Fund
FMP 10 1,22,29,943.473 1,226.57 — — —
1,226.57 —
TOTAL 1,278.27 46.65
* Figures Denote Amount in Rupees
31/03/2008 31/03/2007
Rs. in Lacs Rs. in Lacs
Aggregate Value of long term quoted investments 48.66 23.96
Aggregate Value of current quoted investments 43.86 20.12
TOTAL 92.52 44.08
Aggregate Value of unquoted investments 5.05 0.10
Market Value of quoted investments 112.16 63.33

LIMITED Schedules
Face Value No. of

Rupees Units/Shares
SCHEDULE “F” (Contd.)
Investments Purchased and Redeemed/Sold during the year:
I. MUTUAL FUND UNITS:
SBI Mutual Fund - Magnum Insta Cash Fund – DDR 10 16,895,219.78
SBI Mutual Fund - Premier Liquid Fund - Instl. Plan – DDR 10 20,267,965.11
Principal Mutual Fund - Cash Mgmt. Fund Liquid - Instl. Premium - DDR 10 385,846,096.89
Principal Mutual Fund - Cash Management Fund – Floating Rate Fund FMP 10 12,224,963.29
Principal Mutual Fund - Cash Management Fund – Institutional Plan - DDR 10 680,784.87
As at As at
31/03/2008 31/03/2007
SCHEDULE “G”
INVENTORIES
(As Certified by the Management)
(Refer Note A-6 of Schedule ‘N’)
Stores, Spare Parts, Fuel 5,389.72 1,944.21
Packing Materials (at or below cost) 48.95 24.76
Mercury on hand & in process — 228.65
Stock-In-Trade
Raw materials on hand & in transit 2,485.58 2,896.36
Finished Goods 4,135.93 1,787.03
Stock in process 87.79 58.09
Packing Drums & Scrap 269.90 35.77
Coke dust, Gypsum 40.29 54.16
Shares (Refer Statement below) 8.58 8.25
TOTAL 12,466.74 7,037.28
Investments in shares (Stock in trade) As at 31/03/2008 As at 31/03/2007

Face No of Amount No of Amount
Value per Shares Rs. in Shares Rs. in
Particulars Share Rs. lacs lacs
Quoted
Reliance Industries Ltd 10 561 0.44 553 0.42
Reliance Communication Ltd. 5 553 — 553 —
Reliance Energy Ltd. 10 41 — 41 —
Reliance Natural Resources Ltd. 5 553 — 553 —
Reliance Capital Ltd. 10 27 — 27 —
Grasim Industries Ltd. 10 700 2.01 700 2.01
Ranbaxy Laboratories Ltd. 5 5,426 5.60 5,426 5.60
Reliance Industrial Infrastructure Ltd. 10 1,900 0.19 1,900 0.19
Indian Telephone Industries Ltd. 10 3,400 0.34 3,400 —
IPCL 10 — — 43 0.03
TOTAL 8.58 8.25

Schedules LIMITED
As at As at
31/03/2008 31/03/2007
SCHEDULE “H” Rs. in lacs Rs. in lacs
Sundry Debtors (Unsecured unless otherwise stated)

(a) Over 6 Months
Considered good (Secured) 30.00 30.00
Considered good 657.60 1,611.61
Considered doubtful 276.47 276.47
(b) Other Debts (considered good) 5,787.53 4,706.54

6,751.60 6,624.62
Less: Provision for doubtful debts 276.47 276.47
TOTAL 6,475.13 6,348.15
SCHEDULE “I”
CASH AND BANK BALANCES
1. Cash on hand 9.86 2.69
2. Cheques, Stamps, Hundi papers on hand 0.05 0.05
3. Balance with Scheduled Banks
a. in Current Account 960.76 (490.85)
b. in Fixed Deposits (Pledged with Bank as Margin Money) 2.76 44.45
4. Post office Savings Deposit (Pass Book Pledged with
Central Excise Department) 0.01 0.01
5. Balance with Dhrangadhra People’s Co-op Bank Ltd. (Maximum amount
outstanding Rs. 0.02 lacs) 0.02 0.02
TOTAL 973.46 (443.63)
SCHEDULE “J”
LOANS AND ADVANCES (UNSECURED, CONSIDERED GOOD)
Advances recoverable in cash or kind or for value to be received
(Including advance for capital items) 1,668.89 5,221.25
Inter Corporate Deposits – Considered Good 0.10 –
Staff loans 48.45 42.49
Interest accrued on Inter Corporate Deposits 26.95 0.44
DCW Pigments Ltd. — 0.31
Electricity and other Deposits 150.93 135.58
Balance with Customs, Central Excise etc. 4,057.74 3,150.66
Claims against Insurance, Railways, Custom etc. 107.58 101.34
MAT Credit Entitlement 472.25 317.25
TOTAL 6,532.89 8,969.32

LIMITED Schedules
As at As at
31/03/2008 31/03/2007
SCHEDULE “K”
LIABILITIES
Acceptances against Letters of Credit 13,863.49 7,632.58
Sundry Creditors (Includes Liabilities for capital * 3,806.58 6,818.99
items Rs. 996.24 Lacs)
Advances from customers and consignees 1,418.06 1,445.77
Trade and Other Deposits 425.63 344.04
Unclaimed Dividend # 27.15 18.91
Unclaimed Interest Public Deposit Monies # 0.04 0.43
Other Liabilities 1,030.39 613.65
Interest accrued but not due on Loans 267.34 122.89
TOTAL 20,838.68 16,997.26
* Includes outstanding dues of micro, small & medium enterprises

Rs. 9.22 lacs (Previous year Rs. 18.57 lacs)
# These figures do not include any amounts, due and outstanding,
to be credited to Investor Education and Protection Fund.
SCHEDULE “L”
PROVISIONS
Proposed/Final Dividend – Equity 588.46 517.63
Tax on proposed/Final Dividend 100.01 87.97
Provision for Tax (net off Advance Tax and Tax Deducted at Source) 233.09 348.02
Provision for fringe benefit tax 27.00 9.00
Provision for Retirement & Other Emp. Benefits 625.06 583.61
TOTAL 1,573.62 1,546.23
SCHEDULE “M”
A. CONTINGENT LIABILITIES NOT PROVIDED FOR :
1. Disputed Sales Tax Demands 982.37 987.94
2. Disputed Excise Demands 304.97 331.55
3. Disputed Customs Demands 197.20 95.79
4. Company’s contribution to ESI not made pursuant to petitions for
exemption pending before High Court 85.87 82.40
5. Lease Rent, Local Cess, Interest on Lime Stone, Surcharge,
Stamp Duty, Octroi & Water and Electricity charges 1,826.41 1,609.13
6. Disputed Industrial relations matters 293.12 251.68
TOTAL 3,689.94 3,358.49
B. GUARANTEE AS A MEMBER OF THE ALKALI MFRS. ASSN.
(A Company Limited by Guarantee) Rs. 500 Rs. 500

Schedules LIMITED

SCHEDULE - “N”
SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH 2008.
A. SIGNIFICANT ACCOUNTING POLICIES
1. SYSTEM OF ACCOUNTING
(A) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(B) Financial statements are prepared on historical cost basis and as a going concern, adjusted for revaluation/dimunition
in value of certain fixed assets.
2. USE OF ESTIMATES
The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts
reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in
the period in which they materialize.
3. FIXED ASSETS AND DEPRECIATION
(A) Fixed Assets

Fixed Assets are stated at their original cost net of Cenvat Credit where applicable (including expenses related to
acquisition and installation) except certain Fixed Assets which are adjusted for revaluation.
(B) Depreciation and Amortisation

Depreciation is charged in the Accounts on straight line method as under:
(a) On assets revalued at Sahupuram Unit on 31-3-93 @ 3 % on the revalued cost based on revision in useful life
estimated by the valuer (Refer Note B2).
(b) On fixed assets added pursuant to the amalgamation of Pantape Magnetics Limited with the Company, at rates
specified in Schedule XIV to the Companies Act, 1956 on the revalued cost.
(c) On balance fixed assets of the company at rates specified in Schedule XIV to the Companies Act, 1956 on the
original cost.
(d) On fixed assets added/disposed off during the year, on pro-rata basis with reference to the month of addition/
disposal.
(e) On Technical Know-how fees at 33.33%
4. REVENUE RECOGNITION
Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will follow
to the company.
(a) Sales : Revenue from sale of goods is recognized when significant risks and rewards of ownership of the goods are
transferred to the customer and is stated net of trade discounts, excise duty, sales returns and sales tax.
(b) Interest : Revenue is recognized on time proportion basis taking into account the outstanding amount and the applicable
rate of interest
(c) Dividends : Revenue is recognized when the right to receive payment is established.
5. EXPENDITURE DURING CONSTRUCTION AND ON NEW PROJECTS

In the case of new projects and in the case of modernisation/expansion of existing units, interest on borrowings for the same
and all pre-operative expenditure, incurred during implementation upto the date of installation are included under Capital
Work in Progress and capitalised by adding pro-rata to the cost of the assets.

LIMITED Schedules
6. INVESTMENTS
The Company’s investments comprise long term and current investments. Long Term investments are stated at cost less
permanent dimunition, if any, in value. Current investments are stated at lower of cost or market value.
7. INVENTORIES
Inventories are valued at lower of cost and net realisable value except stores, spares and stock in process which are valued
at cost, packing materials which are valued at or below cost and scrap and by products which are valued at net realisable
value. Cost is computed on weighted average basis and includes cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
8. ACCOUNTING FOR CENVAT AND SERVICE TAX CREDITS

Cenvat credit available on Raw Materials, Fuel and Packing materials, stores, spares and Capital goods and Service tax credit
on services availed are accounted for by reducing purchase cost of the related material or the expenses respectively and
Cenvat Credit available on fixed assets is accounted by reducing the same from the cost of respective fixed assets.
9. FOREIGN CURRENCY TRANSACTIONS
(a) Transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of Transactions.
(b) Monetary items denominated in foreign currencies (such as cash receivables , payables, etc.) outstanding at the year
end, are translated at exchange rate applicable as of that date.
(c) Non-monetary items denominated in foreign currency (such as investments, fixed assets, etc) are valued at the exchange
rate prevailing on the date of transaction.
(d) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted in the
Profit & Loss Account.
(e) Premium/discounts on forward exchange contracts are amortised over the life of the contract and recognised in the
Profit and Loss account, exchange differences on such contracts are recognized in the profit and loss account in the
reporting period in which the exchange rates change.
10. RESEARCH & DEVELOPMENT EXPENDITURE

Revenue Expenditure on Research & Development is charged against the Profit of the year in which it is incurred. Capital
expenditure on Research & Development is shown as an addition to fixed assets.
11. BORROWING COSTS

Borrowing costs attributable to acquisition, construction or production of a qualifying asset are capitalized as part of the
cost of that asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All
other borrowing costs are recognized as an expense in the period in which they are incurred.
12. EMPLOYEE BENEFITS
(a) Contributions to Provident and Superannuation Funds are made to recognised funds and are charged to Profit & Loss
Account. The interest rate payable by recognized Provident Fund shall not be lower than the statutory rate of interest
declared by Central Government and shortfall, if any, shall be made good by the company.
(b) The company has created an Employees’ Group Gratuity Fund which has taken a Group Gratuity Assurance Scheme
with the Life Insurance Corporation of India. Premium charged by the Life Insurance Corporation of India, based on
actuarial valuation is debited to the Profit and Loss account.
(c) Liabilities towards Leave Encashment Benefit is provided for based on actuarial valuation done at the year end.
(d) Contribution to Employee Pension Scheme 1995 are accounted on accrual basis with corresponding remittance made
to Government Provident Fund authority.

Schedules LIMITED

13. PROVISIONS & CONTINGENCIES
A. A provision arising out of a present obligation is recognized when it is probable that an outflow of resources will be
required to settle the obligation and the amount can be reasonably estimated.
B. Wherever there is a possible obligation that may, but probably will not require an outflow of resources, the same is
disclosed by way of contingent liability.
C. Show Cause Notices are not considered as Contingent Liabilities unless converted into demand.
14. TAXES ON INCOME

Income tax expenses comprises current tax and deferred tax charge or credit. Deferred tax assets/liabilities are measured by
applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset
arising on account of unabsorbed depreciation under tax laws is recognised only to the extent there is virtual certainty of
its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised
only to the extent there is reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred
Tax Asset is reviewed based on developments to reassess realisation.
15. IMPAIRMENT OF ASSET

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/
external factors. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.
Any such impairment loss is recognized by charging it to the profit and loss account. A previously recognized impairment
loss is reversed where it no longer exists and the asset is restated to that effect.
B. NOTES ON ACCOUNTS
1. Estimated amount of Contracts remaining to be executed on Capital Account and not provided for is Rs. 1412.38 lacs
(previous year Rs. 17662.68 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more by Rs. 23.70 lacs (previous year Rs. 32.61 lacs ) than
the depreciation charge thereon under section 205(2)(b) of the Companies Act, 1956 and the same is met by drawing from
Revaluation Reserve. The uplift on revalued assets discarded amounting to Rs. 284.15 lacs (previous year Rs. 48.77 lacs)
has also been met by drawing from Revaluation Reserve.
3. Consignment sales and expenses are incorporated on the basis of sale notes when received from consignees.
4. Confirmation of balances from some of the Debtors and Creditors, have not been received.
5. The break up of Deferred Tax Assets/Liabilities are as under :
(Rs. in lacs)
Nature of timing difference Deferred Tax (Debit/Credit) Deferred Tax

Liability/(Asset) for the year Liability/(Assets)
as at 1st April, 2007 as at 31st March, 2008
(a) Deferred tax liabilities

Depreciation 6620.54 991.50 7612.04
Sub-total 6620.54 991.50 7612.04
(b) Deferred Tax assets
Expenses allowed on payment basis 309.37 (42.23) 267.14
Longterm capital loss to be set-off 0 0 0
Sub – total 309.37 (42.23) 267.14
6311.17 1033.73 7344.90

LIMITED Schedules
6. RELATED PARTY INFORMATION.
(i) Relationships:
(a) Subsidiary Companies
DCW Pigments Ltd
(b) Where control exists
Double Dot Finance Ltd.
Crescent Finstock Ltd.
Sahu Brothers (Saurashtra) Pvt. Ltd.
Dhrangadhra Trading Company Pvt. Ltd.
Kishco Ltd.
Kalpataru Botanical Garden Pvt. Ltd.
Crescent Holdings Pvt. Ltd.
(c) Key Management Personnel
Dr. S. C. Jain Chairman & Managing Director
Shri P. K. Jain Managing Director
Shri Bakul Jain Managing Director
Smt. Vandana Jain Executive Director
Shri Vivek Jain Sr. President
Shri Mudit Jain President
Shri Ashish Jain President
Smt. Paulomi Jain Vice President
Note: Related party relationships on the basis of the requirements of Accounting Standard (AS) – 18 disclosed
above is as identified by the company and relied upon by the auditors.
(ii) DISCLOSURE OF TRANSACTIONS BETWEEN THE GROUP AND RELATED PARTIES AND THE STATUS OF
OUTSTANDING BALANCES AS ON 31ST MARCH, 2008
(Rs. In lacs)
Particulars Enterprises where Key Management

control exists Personnel
Commission paid 4.47 —
Remuneration paid — 503.74
Purchases 1.13 —
Balances as on 31st March, 2008 5.56 —

Schedules LIMITED

Segment Information for the year 2007-08
(Rs. In lacs)
CAUSTIC PVC SODA ASH OTHERS TOTAL
Segment Revenue
External Revenue 21,824.64 39,233.57 14,228.47 733.59 76,020.27
20,130.58 32,614.13 13,440.90 1,594.88 67,780.49
Inter Segment Revenue — — — — —
— — — — —
Total Revenue 21,824.64 39,233.57 14,228.47 733.59 76,020.27
20,130.58 32,614.13 13,440.90 1,594.88 67,780.49
Result
Segment Result 881.50 3,686.29 1,463.26 373.44 6,404.49
571.55 437.46 1,289.32 1,280.93 3,579.26
Add: Unallocated Corporate
Income — — — — 36.83
— — — — 98.35
Less:
Finance Charges 1,348.33
541.72
Current Tax 480.00
375.92
Deffered Tax 1,033.73
743.07
Net Profit 3,579.26
2,016.90
Other Information
Segment Assets 63,967.32 10,503.98 15,618.90 6,996.43 97,086.63
41,943.28 9,808.73 14,869.26 6,309.45 72,930.72
Assets — — — — 1,750.42
— — — — 533.20
Total 63,967.32 10,503.98 15,618.90 6,996.43 98,837.05
41,943.28 9,808.73 14,869.26 6,309.45 73,483.92
Segment Liabilities 37,072.65 15,936.57 4,069.69 2,623.70 59,702.61

24,912.98 11,292.96 5,499.47 5,394.06 47,099.47
Liabilities — — — — 7,604.99
— — — — 757.73
Total 37,072.65 15,936.57 4,069.69 2,623.70 67,307.60
24,912.98 11,292.96 5,499.47 5,394.06 47,857.20
Capital Expenditure 25,904.23
19,976.64
Depreciation 1,781.04 337.57 579.68 304.55 3,002.84
1,365.15 309.08 482.14 376.53 2,532.90

LIMITED Schedules
7. Encroachers have occupied some portions of the land belonging to the Company at Sahupuram. Efforts are being made to
evict them.
8. The Company has changed the method of valuation of closing stock of Caustic Soda Lye group by treating Chlorine, Hydrogen
Gas and Hydrochloric Acid as by-products instead of joint products. This has resulted into decrease in valuation of Finished
Goods by Rs. 48.21 lacs, which has decreased the Profit for the year by the same amount.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95, 1995-96, 1997-98 and 2004-05 to 2006-07 (except
for 1996-97, 1998-99 to 2003-04 which has been completed). Central Sales Tax Assessments and Tamilnadu General Sales
tax act of Sahupuram Unit are completed upto 2004-05 except for the year 2003-04.
10. In respect of land on lease, the future obligations towards lease rentals under the lease agreements as on 31st March, 2008
amount to Rs. 112.98 lacs (previous year Rs. 189.29 lacs).
11. During the year the company has entered into option to hedge its exposure on US$ Libor related to its external commercial
borrowing aggregating to US$ 20 Million.
The year end foreign currency exposure that have not been hedged by derivative instrument or otherwise Payables
Rs. 18,121.65 lacs.
12. In the matter of custom duty on imported calciner, the Hon’ble Gujarat High Court, has vide order dated 15th December,
2005, partly allowed company’s civil application for refund of Rs. 41.48 lacs, to the extent of Rs. 17.50 lacs, that has since
been received and denied claim for refund of balance Rs. 23.98 lacs on account of unjust enrichment. The Company has
filed special leave petition before Hon’ble Supreme Court in this regard. The case is pending for hearing.
13. Computation of net profits under section 349 of the Companies Act, 1956.
(Rs.in lacs)
Particulars Amount
Profit before tax as per Profit & Loss Account 5092.99
Add:
Wealth Tax paid 1.30
Managerial remuneration 435.11
Directors’ sitting fees 2.13
Less:
Interest capitalized 225.82
Profit on sale of assets 496.08
Net profit U/S 349 4809.63
10% thereof i.e. (4809.63 X 10/110) 437.24
Less: Managerial remuneration paid 153.56
Commission payable 283.68
14. Based on Management’s review of the Capital Expenditure on Carbonation Towers and Calcium Chloride plant at Soda
Ash plant in 2004-05 & 2006-07 respectively and based on detailed study by technical experts, justifying additions and
modifications, the same are being held as capital work in progress. Till such time the Carbonation Towers and Calcium
Chloride plant becomes operational, interest of Rs. 225.82 lacs, for this year has been capitalized.
15. The Tamilnadu Government has passed fresh legislation imposing Electricity Tax on captive power generated with retrospective
effect from 2003. The company along with other captive power producers has challenged the levy in the Madras High Court,
which has admitted the writ-petition.

Schedules LIMITED
16. (a) Sundry Creditors ( Schedule K) include Rs. 9.22 lacs, due to small scale and ancillary undertakings outstanding for
more than 30 days. This amount has been determined to the extent such parties have been identified from available
information. This has been relied upon by the auditors.
(b) The small scale undertakings from whom amounts outstanding for more than 30 days are as under.:-
1. Tamilnadu Synthetics, 2. Ganesh Polymenrs,
(c) In the absence of requisite information pertaining to Micro Small & Medium Enterprises under Micro Small & Medium
Enterprises Development Act, 2006, dues to SSI undertakings is reported as per the earlier requirements.
17. Insurance claim received in respect of machinery Rs. 45.19 lacs (previous year Rs. NIL lacs) is taken as other income.
18. Due from companies in which Directors of the company are directors is Rs. NIL lacs (Previous year Rs. 0.31 lacs).
19. Disclosure pursuant to Accounting Standard – 15 (Revised) “Employee Benefits”

(a) Effective 1st April’07, the company has adopted accounting standard 15 (revised 2005) “ Employee Benefits” issued
by ICAI. The Company has classified the various benefits provided to employees as under:
(b) Defined Contribution Plans:

The Company has recognized the following amounts in the Profit & Loss Account which are included under contribution
to Provident Fund and Other Funds:
Rs. In Lacs
Provident Fund 186.11
Superannuation Fund 54.52
Employees Pension Scheme, 1995 127.29
The Rules of the Corporate Provident Fund administered by a Trust require that if the Board of Trustees are unable to
pay interest at the rate declared on Employees‘ Provident Fund by the Government under the Employees Provident
Fund Scheme, for the reason that the return on investment is less or for any other reason, then the deficiency shall be
made good by the Company. Having regard to the assets of the fund and the return on the investments the Company
does not expect any deficiency in the foreseeable future.
(c) Defined Benefit Plans
Gratuity Leave Wages

Funded Non-Funded
Rs. lacs Rs. lacs
1. Change in Benefit Obligation
Liability at the beginning of the year 1st April ’07 1600.00 382.63
Interest cost 128.00 32.57
Current Service Cost 60.13 43.68
Benefit Paid 18.13 (38.53)
Actuarial (gain)/Loss on obligation (67.20) 17.12
Liability at the end of the year 1702.80 437.46
2. Changes in the Fair Value of Plan Assets
(a) Present Value of Plan Assets as at 1st April, 2007 1401.94 —
(b) Expected Return on Plan Assets 130.53 —
(c) Actuarial (Gain)/Loss — —

LIMITED Schedules
Gratuity Leave Wages

Funded Non-Funded
Rs. lacs Rs. lacs
(d) Employers’ Contributions 0.86 —
(e) Benefits Paid 18.13 —
(f) Present Value of Planned Assets as at 31st March, 2008 1515.20 —
3. Amount Recognized in the Balance Sheet including a
reconciliation of the Present Value of Defined Benefit Obligation
and the Fair Value of Assets
(a) Present Value of Defined Benefit Obligation as at 31st
March, 2008 1702.80 437.46
(b) Fair Value of Plan Assets as at 31st March, 2008 1515.20 —
(c) Net Liability recognized in the Balance Sheet
(as at 31st March,2008) 187.60 437.46
4. Expenses Recognized in the Profit and Loss Account
(a) Service Cost 60.13 43.68
(b) Interest Cost 128.00 32.56
(c) Expected Return on Plan Assets 130.53 —
(d) Curtailment Cost/(Credit) — —
(e) Settlement Cost/(Credit) — —
(f) Net Actuarial (Gain)/Loss (67.20) 17.12
(g) Total Expenses recognized in the Profit and Loss A/c (9.59) 93.36
5. Actual Return on Plan Assets
6. Estimated Contribution to be made in the next annual year
7. The Composition of Plan Assets : i.e. Percentage of each Category
of Plan Assets to Total Fair Value of Plan Assets
as at 31st March,2008
(a) Govt of India Securities — —
(b) Corporate Bonds — —
(c) Special Deposit Scheme — —
(d) Equity Shares of Listed Companies — —
(e) Property — —
(f) Insurance Managed Funds 1515.20 —
(g) Others — —
(h) Total 1515.20 —
8. Actuarial Assumptions
Retirement age 58 58
Discount rate 8% 8%
Mortality LIC (1994-96) Ultimate
Withdrawal rate 1% - 3% —
Salary escalation 4.5% 4.5%

Schedules LIMITED
20. Acceptances under current liabilities are disclosed after netting off fixed deposits for Rs. 5535 lacs (Previous Year Rs. NIL
lacs) given as security to the Company’s Bankers for issuing letter of credit. This does not understate current assets of the
company.
21. Based on evaluation by the management of their being reasonable certinity that the company will be liable to pay normal
income tax within 7 subsequent years, MAT credit of Rs. 155 lacs (Previous Year Rs. 44.89 lacs), has been recognized as an
asset with corresponding credit to profit and loss account.
22. Earning per share (EPS) as per Accounting Standard – 20
2007-08 2006-07
Rs. Lacs Rs. lacs
Profit after Tax 3579.25 2016.88
No. of Equity shares of Rs. 2 each as on 31.3.2008
Basic 19,61,54,590 17,25,44,590
Diluted 18,81,55,574 17,25,44,590
EPS (Rs.)
Basic 1.82 1.17
Diluted 1.90 1.17
23 Information required in terms of Part IV of Schedule VI of the Companies Act, 1956 is attached.
Schedule “A” to “N” form an integral part of the Balance Sheet and Schedule “1” to “6” form an integral part of the Profit and
Loss Account.
Previous year figures are regrouped to match with current years grouping.
Pramod Kumar Jain

LIMITED Schedules
FORMING PART OF THE PROFIT AND LOSS ACCOUNT

31/03/2008 31/03/2007
SCHEDULE “1”
SALES (less Rebates and Trade Discount but including excise duty)
Direct Sale * 46,904.86 39,776.09
Consignment Sales 30,118.40 28,211.79
Export Sales 9,116.76 7,167.00
Other Sales * 224.94 246.99
Sale of Services [TDS Rs. Nil (Previous Year Rs. 17.95 lacs)] — 17.95
TOTAL 86,364.96 75,419.82

* Includes Sale of Traded Goods Rs. 9.01
(Previous Year Rs. 33.75 lacs)
SCHEDULE “2”
OTHER INCOME
Profit/Loss on Sale of Investments 1.12 —
Profit on Sale of Fixed Assets 6.96 962.29
Unclaimed balance written back 40.45 5.95
Dividend received on current Investments 35.84 95.40
Dividend received on Long Term Investments 0.99 2.96
Bad Debts Recovered 0.34 —
Gain on Foreign Exchange Transactions (Net) 568.34 36.84
Miscellaneous Income 606.71 532.13
TOTAL 1,260.75 1,635.57

Schedules LIMITED

31/03/2008 31/03/2007
SCHEDULE “3”
MANUFACTURING AND OTHER EXPENSES
1. Consumption of Materials : Raw Materials

Stock in hand and in process as at opening 2,896.36 3,239.82
Add: Purchases 41,711.60 32,833.91
Less: Closing stock in hand & in process (including taxes duties etc.) 2,485.58 2,896.36
TOTAL 42,122.38 33,177.37
2. (a) INCREASE/DECREASE IN STOCK

Closing Stock:
Manufactured Products 3,632.96 1,787.03
Packing Drums and Scrap 269.89 35.77
Coke Dust & Gypsum 40.29 54.16
Stock of Traded Shares 8.58 8.25
4,039.51 1,943.30
Opening Stock:
Manufactured Products 1,619.03 5,690.39
Packing Drums and Scrap 35.77 31.22
Coke Dust & Gypsum 54.16 52.43
Stock of Traded Shares 8.25 8.25
1,775.30 5,853.46
Opening Stock – Closing Stock (2,264.21) 3,910.16

Closing Stock – Excise Duty (502.97) —
Opening Stock – Excise Duty 168.00 —
(334.97) —
(b) Purchases for resale (Net of stock of traded goods capitalised/written off) 9.26 32.73
TOTAL (2,589.92) 3,942.89
3. SALARIES, WAGES & BENEFITS TO EMPLOYEES

Salaries & Wages 3,473.89 2,967.12
Contribution to Provident and other Funds 429.72 445.37
Employees’ Welfare 353.71 336.64
TOTAL 4,257.32 3,749.13
4. Power and Fuel 13,400.19 12,221.66

LIMITED Schedules

31/03/2008 31/03/2007
SCHEDULE “3” (Contd.)

5. OPERATION AND MAINTENANCE
Repairs and Maintenance – Buildings 373.48 301.68
Repairs and Maintenance – Plant & Machinery 2,117.81 1,847.55
Repairs and Maintenance – Other Assets 195.78 133.06
Packing Charges 1,812.78 1,471.11
Other Operation & Maintenance Expenses 1,260.73 1,137.17
TOTAL 5,760.58 4,890.57
6. ASSETS SOLD OR WRITTEN OFF

Fixed Assets discarded, obsolete, written off 309.13 117.00
Less : Drawn from Revaluation Reserve (284.15) (48.77)
24.98 68.23
Loss on Sale of Fixed Assets 31.81 70.24
(Unserviceble etc. written off)
TOTAL 56.79 138.47
7. ADMINISTRATION EXPENSES
Rent 25.59 18.16
Rates, Taxes and licence fees 63.65 217.60
Insurance 182.02 231.70
Wealth tax paid 1.30 3.55
Donation 1.15 2.84
Other expenses 812.80 724.99
TOTAL 1,086.51 1,198.84
8. SELLING AND DISTRIBUTION

Freight, Transportation, Loading and Other 1,593.75 1,443.04
Charges (Net)
Commission to wholesalers/others 446.86 474.90
Cash discount 58.58 65.40
Octroi – Consignment Sale 7.13 1.90
TOTAL 2,106.32 1,985.24
9. (a) PAYMENT TO AUDITORS

(i) Audit Fees 5.00 5.00
(ii) Tax Audit 1.25 1.25
(iii) Retainer fees 3.60 3.60
(iv) Other Services 1.96 1.70
(v) Reimbursement of Expenses 3.17 3.89
TOTAL 14.98 15.44

Schedules LIMITED

31/03/2008 31/03/2007

(b) Details of Directors’ Remuneration under Section 198
(i) Managing Director’s and Whole time Directors’ Remuneration :
Salary 96.00 96.00
Perquisites on House 9.60 9.60
Gas, Electricity expenses 10.64 —
Company’s Contribution to PF 8.64 9.59
Leave Travel Concession 4.93 —
Medical Expenses 10.82 7.53
Company’s Contribution to Superannuation 10.80 12.00
Commission 283.68 134.31
MD’s Leave Encashment — 13.69
(ii) Directors Sitting Fees 2.13 1.05
437.24 283.77
Less : Amount capitalised 39.48 33.38
397.76 250.39
TOTAL 66,612.91 61,570.00
SCHEDULE “4”
INTEREST AND FINANCE CHARGES
Fixed loans 899.98 307.35
Others 557.03 398.15
1,457.01 705.50
Less : Interest from banks & others (TDS Rs. 22.10 lacs)
(Previous Year Rs. Nil lacs) (108.67) (34.92)
TOTAL 1,348.34 670.58
SCHEDULE “5”
DEPRECIATION
Depreciation on Fixed Assets for the year 3,026.55 2,565.49
3,026.55 2,565.49
Less : Drawn from Revaluation Reserve 23.70 32.61
TOTAL 3,002.85 2,532.88
Pramod Kumar Jain

LIMITED Schedules
SCHEDULE “6”
(a) Quantitative information with regard to each class of goods manufactured/traded (as certified by Chairman & Managing Director)
PARTICULARS CAPACITY - MT OPENING STOCK PRODUCTION SELF CLOSING STOCK SALES
CONSUMP-
TION
Licensed Installed Quantity Value Quantity Quantity Quantity Value Quantity Value
MT Rs. in lacs MT MT MT Rs. in lacs MT Rs. in lacs
Dharangadhra Unit
Soda Ash 96,000 96,000 414 38.70 81,248 12,212 1,429 153.29 68,021 8,655.55
(96,000) (96,000) (1,437) (124.54) (80,816) (10,136) (414) (38.70) (71,703) (7,859.37)
Soda Bicarbonate 12,000 12,000 212 22.20 16,050 — 716 84.18 15,546 1,922.43
(12,000) (12,000) (1,533) (147.42) (18,299) (—) (212) (22.20) (19,620) (2,212.93)
Amonium Bicarbonate 5,000 — — 0.04 446 — 15 1.52 431 45.02
(5,000) (—) (13) (1.04) (1,599) (—) (—) (0.04) (1,612) (149.46)
Detergent – Green — — — — 7,772 — 220 22.64 7,552 1001.79
(—) (—) (—) (—) (4,482) (—) (—) (—) (4,482) (590.87)
Detergent – Active — — 247 28.98 33,544 — 418 50.73 33,373 5,165.39
(—) (—) (—) (—) (31,431) (—) (247) (28.98) (31,184) (4,804.51)
Sahupuram Unit
Caustic Soda Lye 1,00,000 1,00,000 1,064 133.64 63,025 21,947 2,495 443.06 39,647 6,104.82
(60,000) (60,000) (1,346) (147.75) (56,210) (22,664) (1,064) (133.64) (33,828) (5,047.55)
Caustic Soda Solid — — 5 0.68 137 — 20 4.50 122 29.30
(—) (—) (5) (0.70) (89) (—) (5) (0.68) (89) (21.09)
Caustic Soda Flakes — — 647 102.98 20,676 128 236 51.02 20,959 4,474.21
(—) (—) (390) (55.23) (21,612) (91) (647) (102.98) (21,264) (4,435.06)
Sodium Hypochlorine — — — — 3,716 15 — — 3,701 97.9
(—) (—) (—) (—) (2,199) (2) (—) (—) (2,197) (56.59)
Hydrochloric Acid 100% 90,000 66,000 17 0.69 43,554 37,515 58 1.22 5,998 257.86
(39,600) (33,000) (14) (0.61) (38,257) (35,916) (17) (0.69) (2,338) (116.63)
Liquid Chlorine 36,000 36,000 41 2.28 13,280 5,578 263 8.36 7,480 394.00
(40,000) (40,000) (116) (7.54) (12,470) (6,003) (41) (2.28) (6,542) (409.41)
Trichloroethylene 7,200 7,200 266 127.34 3,795 — 684 276.40 3,377 1,753.17
(5,400) (5,400) (373) (169.22) (3,920) (1) (266) (127.34) (4,026) (2,101.47)
Upgraded Ilmenite 72,000 48,000 2764 709.60 37,934 — 3,339 734.78 37,359 9,366.07
No Licence
Required (25,000) (1,681) (383.62) (35,841) (—) (2,764) (709.60) (34,758) (8,968.66)
Utox No Licence 600 115 21.82 1792 5 796 141.5 1106 333.53
Required (600) (66) (10.78) (829) (4) (115) (21.82) (776) (216.76)
Ferrie Chloride — 10,000 525 5.97 3,890 30 146 1.66 4,239 229.51
(—) (10,000) (302) (2.80) (4,115) (14) (525) (5.97) (3,878) (111.24)
Yellow Iron Oxide — — — 0.30 278 — 12 4.16 266 86.03
(—) (—) (15) (4.67) (186) (—) (—) (0.30) (201) (59.83)
PVC Resin 90,000 90,000 1,117 534.43 87,347 3 4,319 2,103.15 84,142 45,500.14
(—) (60,000) (10,619) (4,539.55) (67,140) (1) (1,117) (534.43) (76,641) (37,206.24)
Caustic Soda Lye — — — — 50 — — — 50 —
(Traded Goods) (—) (—) (—) (—) (170.00) (—) (—) (—) (170) (—)
Misc. Sales — — — — — — — — — —
(—) (—) (—) (—) (—) (—) (—) (—) (—) (—)
TOTAL 85,416.72
(74,367.67)
Note : 1. Licensed capacity is not applicable in view of the company’s products having been delicensed as per the new liberalised licensing policy announced by the Government
of India.
2. Ammonium Bicarbonate production is out of part of Soda ash plant.
3. Self consumption quantity mentioned includes quantity lost in handling, lost in transit, wash loss, samples, etc.
4. Previous year figures are given in bracket.
5. Lye sales quantity excludes 113 mt excess as per survey.

Schedules LIMITED
Rs. in lacs
Consolidated
(b) Expenditure in Foreign Currency

(i) Know-how fees —
(—)
(ii) Consultant fees 23.43
(49.66)
(iii) Others 586.65
(559.08)
(c) Earnings in Foreign Exchange
(i) Export on F.O.B. basis 8,903.17
(7,095.79)
(ii) Others 12.82
(12.73)
(d) Consumption of imported/indigenous Raw Materials,
Stores and Spares at Landed Cost
Raw Material Imported 32,127.90
(23,831.22)
Indigenous 11,139.88
(10,084.88)
Stores and Spare parts (Including Consumption for Capital jobs)
Imported 477.39
(1,603.71)
Indigenous 8,529.70
(14,974.74)
Mercury
Imported 32.50
(1.82)
Indigenous —
(—)
(e) Value of Imports on C.I.F. basis
(i) Raw Materials 30,385.41
(22,719.56)
(ii) Fuel Oil —
(—)
(iii) Mercury —
(14.71)
(iv) Stores and Spare parts 248.34
(224.61)
(v) Capital Goods 1,550.50
(1,059.14)
(f) Amount remitted in Foreign Currencies on account of Dividend —
(—)

LIMITED Schedules
TOTAL
Quantity Value
(M.T) Rs. in lacs
(g) Raw Materials consumed:
Salt 326,112 722.80
(317,316) (480.28)
Ilmenite Sand 77,243 2,979.90

(71,794) (2,694.22)
Calcium Carbide 2,848 765.98

(2,893) (726.32)
Vinyl Chloride Monomer 88,301 31,012.53

(67,938) (22,918.29)
Lauryl Peroxide 24 64.37

(19) (51.91)
Limestone 193,345 1,318.79

(210,781) (1,387.20)
Coke 18,162 1,376.03

(19,910) (1,283.31)
Ammonia 1,635 294.73

(1,808) (331.08)
Others — 3,652.64
(—) (3,286.13)
Consumption of own manufactured products and Intermediates — 1,080.72

(—) (757.35)
TOTAL 43,268.49
(33,916.09)
Pramod Kumar Jain

LIMITED
Statement Pursuant to Part IV of Scheme VI of the Companies Act, 1956

Balance Sheet Abstract And Company’s General Business Profile
I. Registration Details
Registration No. 7 4 8 State Code 0 4
Balance Sheet Date 3 1 / 0 3 / 2 0 0 8
(Date / Month / Year)
II. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L 4 7 2 2 0
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
9 8 8 3 7 0 5 9 8 8 3 7 0 5
Source of Funds
Paid up Capital Reserves & Surplus
3 9 2 3 0 9 2 6 9 1 7 8 8
Secured Loans Unsecured Loans
3 8 2 3 3 9 6 4 9 2
Deferred Tax Liabilities
7 3 4 4 9 0
Application of Funds
Net Fixed Assets Investments
7 1 1 1 0 5 6 1 2 7 8 2 7
Net Current Assets Misc. Expenditure
4 0 3 5 9 2 N I L
Accumulated Losses Project Expenditure
N I L N I L
IV. Performance of Company (Amount in Rs. Thousands)
Turnover Total Expenditure
8 6 3 6 4 9 6 7 0 9 6 4 1 0
+ – Porfit/Loss Before Tax + – Profit/Loss After Tax
+ 5 0 9 2 9 9 + 3 5 7 9 2 6
Earnings per Share in Rs. Dividend Rate (%)
1.82 15
V. Generic Names of Three Principal Products/Services of the Company (as per monetary term)
a) Item Code No. (ITC Code) Product Description
3 9 0 0 4 2 1 0 2 POLY VINYL CHLORIDE BY SUSPENSION
2 8 1 5 1 1 0 1 CAUSTIC SODA
2 8 3 6 2 0 0 9 SODA ASH
Pramod Kumar Jain

LIMITED
STATEMENT REGARDING SUBSIDIARY COMPANIES PURSUANT

TO SECTION 212 OF THE COMPANIES ACT, 1956.
1. Name of Subsidiary DCW Pigments Limited
2. Financial year ended 31st March, 2008
3. Holding Company’s Interest:

Equity Capital :
Number of Shares of Rs. 10/- each 49,500
Extent of Holding 99%
4. The net aggregate of Profit/( Loss) of the Subsidiary Company in so far as it concerns the
members of the Holding Company:
(a) Not dealt with in the accounts of the Company for the year ended 31st March, 2008:
(1) For the Subsidiary’s financial year ended as in 2 above —
(2) For the previous financial years of the Subsidiary —
(b) Dealt with in the accounts of the Company for the year ended 31st March, 2008:
(1) For the Subsidiary’s financial year ended as in 2 above —
(2) For the previous financial years of the Subsidiary —
Pramod Kumar Jain

DCW Pigments Ltd.
Directors’ Report
To the Shareholders Conservation of Energy and Technology 3. taken proper and sufficient care
for the year ended 31st March, 2008 Absorption. During the year there is no of the maintenance of adequate
Foreign Exchange Earnings and Outgo. accounting records in accordance
Your Directors present the 1st Annual with the provisions of this Act for
Report of your Company together with Particular of Employees. safeguarding the assets of the Company
the Audited Accounts for the year ended During the year, no employee received and for preventing and detecting fraud
31.03.2008. remuneration in excess of the limits and other irregularities to the best of
prescribed under section 217(2A) of the their knowledge and ability;
Operations Companies Act, 1956 and the Rules made
The Company has not yet commenced its thereunder. 4. prepared the annual accounts on a
operations. going concern basis.
Directors’ Responsibility Statement
Directors In terms of Section 217(2AA) of the Auditors
Shri Mudit Jain retire by rotation and being Companies Act,I956, your Directors M/s. Ashok Shetty & Company, Chartered
eligible offers for reappointment. Shri. Vivek have : Accountants - Statutory Auditors of the
Jain who was appointed as an Additional Company hold office until the conclusion
Director holds office up to the date of the I . followed in the preparation of the of the forthcoming Annual General Meeting
forthcoming Annual General Meeting. annual accounts, the applicable and are eligible for reappointment.
Notice has been received from a member accounting standards have followed
under section 257 of the Companies Act with proper explanation relating to
material departures; For and on behalf of the Board
1956 signifying his intention to propose the
candidature of Shri Vivek Jain as a Director 2. selected such accounting policies Dr. S. C. Jain
of the Company. and applied them consistently and Chairman
made judgement and estimates that Place : Mumbai
Conservation of energy, Technology
Absorption and Foreign Exchange earnings are reasonable and prudent so as to Date : 15th May, 2008
and outgo. give a true and fair view of the sale of Registered Office:
affairs of the Company at the end of the 358, Anna Salai, Thousand Lights
As the Company has not commenced any financial year and of the profit/loss of
operations, there is nothing to Report on Chennai - 600 006
the Company for that period; Tamil Nadu
Auditors’ Report
To, the Companies (Auditors‘ Report) and taken on record by the Board
The Members, Order 2003 and read together with of Directors, we report that, none
DCW Pigments Ltd., Mumbai the Companies (Auditors‘ Report) of the Directors is disqualified as
amendment order, 2004, issued by on March 31st, 2008, from being
the Central Government in terms of appointed as a Dircetor in terms
(I) We have audited the attached section 227(4A) of the Companies Act of Clause (g) of sub-section (I) of
Balance Sheet of M/s. DCW Pigments 1956. section 274 of the Companics
Ltd. as at 31st March 2008, annexed Act 1956.
thereto. These financial statements are (4) For the above:
the responsibility of the Company’s (vi) In our opinion and to the best of
(i) We have obtained all the our information and according
management. Our responsibility is to information and explanations,
express an opinion on these financial to the explanation given to us,
which, to the best of our the said Balance Sheet read
statements based on our audit. knowledge and belief were together, with the notes thereon
(2) We conducted our audit in accordance necessary for the purpose of our give information required by
with auditing standards generally audit. the Companies Act, 1956 in the
accepted in India. Those Standards (ii) In our opinion proper books of manner so required and give a
require that we plan and perform the accounts as required by law, true and fair view in confirmity
audit to obtain reasonable assurance have been kept by the Company with the accounting principles
about whether the financial statements so far as it appears from our generally accepted in India:
are free of material misstatement. An examination of such books. (i) In so far as it relates to, the
audit includes examining on a test Balance Sheet, of the state of
basis, evidence supporting the amount (iii) The Company‘s Balance Sheet
dealt with by this report is in affairs of the Company as at
and disclosures in the financial 31st March, 2008.
statements. An audit also include agreement with the books of
accounts. (ii) Since the Company has not
assessing the accounting principles commenced activity, Profit
used and significant estimates (iv) In our Opinion, the Balance Sheet and Loss Account is not
made by the management, as well dealt with by this report complies prepared.
as evaluating the overall financial with the accounting standards
statements presentation. We believe referred to in sub-section (3C) of
that our audit provides reasonable For ASHOK SHETTY & CO.
section 211 of the Companies
basis for our opinion. Chartered Accountants
Act 1956.
Ashok R. Shetty
(3) Since the Company has not (v) On the basis of written M. No. 102524
commenced operations, we do not representation, received from the
have any comments as required by Directors as on 31st March 2008 Mumbai, Dated: 15th May, 2008

DCW Pigments Ltd.
Balance Sheet
As at As at
31/03/2008 31/03/2008
Rs. Rs
SHARE CAPITAL
Authorised
100000 Equity Shares of Rs. 10/- each 1,000,000 Current Account with Punjab National Bank 464,258
Issued and Paid-up

50000 Equity Shares of Rs. 10/- each 500,000 Miscellaneous Expenses not written off 41,360
(Preliminary and Pre-operative)
Sundry Creditors
Liability for expenses 5,618
TOTAL 505,618 TOTAL 505,618
Notes forming part of accounts

1. The company is yet to commence its manufacturing operations.
2. This being the first year of audited accounts after incorporation of the company, Corresponding previous figures are not available
for comparison.
3. Pending allocation of preliminary & pre-operative expenses like filing fees, registration Charges, stamp duty etc., carried to
balance sheet.
For and on behalf of the Board
For Ashok Shetty & Co. Dr. Shashi Chand Jain

Chartered Accountants Chairman
Vandana Jain Bakul Jain
Partner Executive Director Vivek Jain
Place : Mumbai Chital V. Shah Mudit Jain
Date : 15th May, 2008 Asstt. Company Secretary Directors

Auditor’s Report LIMITED
AUDITOR’S REPORT TO THE consolidated financial statements are free We report that the consolidated financial
SHAREHOLDERS OF DCW LIMITED of material misstatement. An audit includes statements have been prepared by the
examining, on a test basis, evidence Group’s management in accordance with
We have audited the attached consolidated supporting the amounts and disclosures the requirements of Accounting Standard
balance sheet of DCW Limited (the in the consolidated financial statements. 21 issued by the Institute Of Chartered
“Company”) and its subsidiary DCW An audit also includes assessing the Accountants of India.
Pigments Limited as at 31st March, 2008, accounting principles used and significant
consolidated profit and loss account for Based on our audit and consideration
estimates made by management, as
the year ended on that date and also the of reports of other auditors on separate
well as evaluating the overall financial
consolidated cash flow statement for the financial statements of the entity and to
statement presentation. We believe that
year ended on the date annexed thereto the best of our information and according
our audit provides a reasonable basis for
(hereinafter collectively referred to as to the explanations given to us, we are of
our opinion.
the ‘consolidated financial statements’). the opinion that the attached consolidated
These consolidated financial statements We did not audit the financial statements financial statements give a true and fair
are the responsibility of the Group’s of DCW Pigments Ltd., the subsidiary view in conformity with the accounting
management and have been prepared by whose financial statements reflect total principles generally accepted in India; in
the management on the basis of separate assets of Rs. 5 lacs as at 31st March 2008, case of:
financial statements of the entities of the total revenue of Rs. Nil and cash flows (a) the consolidated balance sheet, of
group. Our responsibility is to express an amounting to Rs. 5 lacs for the year then the state of affairs of the Group as at
opinion on these consolidated financial ended as considered in the consolidated 31st March 2008;
statements based on our audit. financial statements. These financial
(b) the consolidated profit and loss
statements and other financial information
We conducted our audit in accordance account, of the profit for the year
have been audited by the other auditors
with the auditing standards generally ended on that date; and
whose reports have been furnished to us
accepted in India. Those standards require and our opinion in respect of thereof is (c) the consolidated cash flow statement,
that we plan and perform the audit to obtain based solely on the report of such other of the cash flows for the year ended
reasonable assurance about whether the auditors. on that date.
For V Sankar Aiyar & Co

Chartered Accountants
S.Venkatraman
Dated : May 16, 2008 Membership No 34319
DCW Limited Ò Annual Report 2007-2008 53

LIMITED Consolidated Balance Sheet
As at
Schedule 31/03/2008
Rs. in lacs
SOURCES OF FUNDS
Shareholders’ Funds :
Capital A 3,923.09
Reserves and Surplus B 26,917.88
Minority Interest 0.05
Loan Funds :
Secured Loans C 38,233.96
Unsecured Loans D 4.92
Deferred tax liability
(Refer Note B - 5 of Schedule - N)
Deferred tax liability 7,612.03
Less : Deferred tax asset (267.13)
7,344.90
45,583.83
TOTAL 76,424.80
Fixed Assets :
Gross Block E 83,983.17
Less : Depreciation 28,020.94
55,962.23
Capital Work-in-progress 15,100.04
Machinery/spares for erection and replacement 48.29
71,110.56
Investments F 1,273.32
Current Assets, Loans and Advances
Inventories G 12,466.74
Sundry Debtors H 6,475.13
Cash and Bank Balances I 978.10
Loans and Advances J 6,532.89
26,452.86
Less: Current Liabilities and Provisions
Liabilities K 20,838.74
Provision L 1,573.62
22,412.36
Net Current Assets 4,040.50
Misc. Expenses not Written Off 0.42
Contingent Liabilities not provided for M
Significant Accounting Policies and Note forming part of N
Balance Sheet and Profit and Loss Account
TOTAL 76,424.80
Pramod Kumar Jain
54 DCW Limited Ò Annual Report 2007-2008

Consolidated Profit and Loss Account LIMITED
FOR THE YEAR ENDED MARCH, 2008
For the year ended

31/03/2008
Rs. in lacs
INCOME
Sales 1 86,364.96
Less: Excise Duty (11,568.62)
Net Sales 74,796.34
Other Income 2 1,260.75
76,057.09
EXPENDITURE
Manufacturing and Other expenses 3 66,612.91
Interest & Finance Charges (Net) 4 1,348.34
67,961.25
Depreciation 5 3,002.85
70,964.10
Profit before tax 5,092.99
Current Tax 575.00
Fringe Benefit Tax 60.00
MAT Credit Available for set off (155.00)
Profit after Current Tax & Tax Adjustments 4,612.99
Deferred Tax (Refer Note B - 5 of Schedule N) 1,033.73
Profit after Deferred tax 3,579.26
Add : Surplus brought forward from last year 2,440.53
Available for appropriation 6,019.79
APPROPRIATION
Transfer to General Reserve 2,000.00
Proposed/Final Dividend on Equity Shares 588.46
Tax on Proposed/Final Dividend 100.01
2,688.47
Profit Carried forward 3,331.32
Notes to Profit & Loss Account 6

Basic earning per share 1.82
Diluted earning per share 1.90
Pramod Kumar Jain

LIMITED
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2008
2007-08
Rs. in Lacs
A. Cash flow from operating Activities
Net profit before tax and extraordinary items 5092.99
Adjustments for :
Non-cash items 49.83
Depreciation 3,002.85
Interest (net) 1,348.34
Dividend income (36.83) 4,364.19
Operating profit before working capital changes 9,457.18
Adjustments for :
Trade and other receivables 2,464.45
Inventories (5,429.46)
Current liabilities and provisions 3,738.48 773.47
Cash generation from operations 10,230.65
Direct taxes paid (731.93)
Cash flow before Extraordinary items
Extraordinary items —
Net cash flow from operating Activities 9,498.72
B. Cash flow from Investing Activities
Purchase of fixed Assets (25,345.90)
Sale of Fixed Assets 570.59
Purchase / Sales of Investments (1,226.68)
Preliminary expenses incurred (0.42)
Dividend Income 36.83
Interest income 108.67
Net cash used in investing Activities (25,856.91)
C. Cash from financing activities
Proceeds from issue of share capital 2,834.05
Repayment of loans (3,402.86)
Repayment of Other borrowings (57.83)
Proceeds from Long Term Borrowings 20,469.20
Proceeds from Short Term Borrowings (144.48)
Interest paid (1,312.56)
Dividend paid (517.63)
Tax on dividend (87.97)
Net cash used in financing Activities 17,779.92
Net increase in Cash and Cash equivalents 1,421.73
Cash & Cash Equivalents as at 1st April 2007 (443.63)
Cash & Cash Equivalents as at 31st March 2008 978.10
1,421.73
Pramod Kumar Jain

Schedules LIMITED
FORMING PART OF CONSOLIDATED BALANCE SHEET

As at
31/03/2008
Rs. in lacs
SCHEDULE “A”
SHARE CAPITAL
Authorised Capital
32,50,00,000 Equity Shares of Rs. 2/- each 6,500.00
(Previous Year 32,50,00,000 Equity Shares @ Rs. 2-each)
TOTAL 6,500.00
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
19,61,54,590 Equity Shares of Rs. 2/- each 3,923.09
(Previous Year 17,25,44,590 shares @ Rs. 2-each)
TOTAL 3,923.09
SCHEDULE “B”
RESERVES AND SURPLUS
CAPITAL RESERVE
As per last balance sheet 355.83
Add: Transfer from Contribution for Capital 51.05
Expenditure
406.88
CAPITAL REDEMPTION RESERVE
As per last Balance sheet 5.30
SHARE PREMIUM
Add : Received during the year 2,361.00

REVALUATION RESERVE
As per last balance sheet 1,240.50
Less : Transferred to Profit and Loss Account 307.86
932.64
GENERAL RESERVE
As per last balance sheet 10,801.04
Add : Transfer from P&L account 2,000.00
12,801.04
CONTRIBUTION FOR CAPITAL EXPENDITURE
As per last balance sheet
Less : Transfer to Capital Reserve —
Profit and loss Account 3331.32
TOTAL 26,917.88
SCHEDULE “C”
SECURED LOANS
Banks
Term loans in Rupees 22,200.52
Term loan in Foreign Currency

8,019.98 30,220.50
Working Capital Loans 337.03
Other Loans
Financial Institutions 6,426.43
Term Loans From NBFC 1,250.00
TOTAL 38,233.96
SCHEDULE “D”
UNSECURED LOANS
Short Term Loans – Banks —
OTHERS
Deferred Sales Tax Credit 4.92
TOTAL 4.92
Due within one year Rs. 1.79 lacs (Previous Year Rs. 1443.60 lacs)

58
Schedules
LIMITED
FORMING PART OF THE CONSOLIDATED BALANCE SHEET
SCHEDULE “E” (consolidated)

FIXED ASSETS
Rs. in Lacs
GROSS BLOCK DEPRECIATION NET BLOCK
Description of At cost or Additions Sales and At cost or Depreciation Depreciation As at
Assets Revalued and other other Revalued For The As at 31-03-2008
Book Value transfers deduc- Book Value Year 31-03-2008
as at tions as at
01-04-2007 31-03-2008
Land 456.19 1.65 — 457.83 — — 457.83
Buildings 5,206.03 1,210.92 8.20 6,408.73 132.15 1,953.31 4,455.42
Plant and Machinery 52,842.29 26,791.21 4,337.54 75,295.96 2,766.83 25,093.76 50,202.20
Furniture & Fittings 636.41 70.41 0.92 705.88 37.58 529.26 176.63
Railway Sidings — — — — — — —
DCW Limited Ò Annual Report 2007-2008

Vehicles 1,053.25 117.62 56.13 1,114.75 89.99 444.61 670.14
TOTAL 60,194.17 28,191.80 4,402.81 83,983.16 3,026.55 28,020.94 55,962.22
Previous Year 59,978.53 5,082.09 4,866.46 60,194.16 2,565.49 28,491.76 31,702.40
Notes:
1. See Note “B-2” of Schedule “N”.

2. Buildings include Rs. 523.06 lacs being cost of ownership flats and office accommodation in Co-operative Societies and a Limited Company against which the
Company holds shares of the face value of Rs. 0.77 lacs in Co-operative Societies and the Limited Company.
3. Land includes the leasehold land valued at Rs. 70.99 lacs.
4. Assignment deeds in respect of 9.13 acres of Land at Caustic Soda Division, transferred by Central Government to the State Government, are yet to be executed
by the State Government in favour of the Company.
5. Land, Building and Plant and Machinery located at Sahupuram Works (other than PVC Division) were revalued on 31.03.1993.
6. The Company exercised the option to purchase 793.39 acres of land leased by the State Government at Sahupuram works. Assignment deeds in respect of the said
land are yet to be executed by the State Government in favour of the Company.
Schedules LIMITED

SCHEDULE “F” As at 31/03/2008
Face No. of Shares/ Amount
Value per Bonds Rs. in
INVESTMENTS (At Cost) Share/ Lacs
Unit
Bond Rs.
I. LONG TERM :
In Govt. & Trust Securities Unquoted
7 years National Savings Certificates 1,000 10 0.10
In other Companies-Non-Trade (Unquoted)
The Dhrangadhra Peoples Co-op. Bank Ltd. 25 10 *250
In Govt. & Trust Securities (Quoted)
Unit Trust of India - 6.75 % Tax Free Bonds 100 19,358 19.36
Less : Diminution value of Bonds 19,358 —
19.36
In other Companies-Non-Trade (Quoted)
Global Trust Bank Ltd. 10 19,000 1.90
LIC Housing Finance Ltd. 10 17,400 10.44
12.34
Less : Diminutions value of shares of Global Trust Bank 19,000 1.90
10.44
II. CURRENT INVESTMENTS :

Tata Consultancy Services Ltd. 1 6 0.03
Reliance Petroleum Ltd. 10 28,040 16.82
16.85
MUTUAL FUNDS
Principal Mutual Fund - Floating Rate Fund FMP 10 1,22,29,943.473 1,226.57
1,226.57
TOTAL 1,273.32
* Figures Denote Amount in Rupees
31/03/2008
Rs. in Lacs
Aggregate Value of long term quoted investments 48.66
Aggregate Value of current quoted investments 43.86
TOTAL 92.52
Aggregate Value of unquoted investments 5.05
Market Value of quoted investments 112.16

LIMITED Schedules
Face Value No. of
Rupees Units/Shares
SCHEDULE “F” (Contd.)

Investments Purchased and Redeemed/Sold during the year:
I. MUTUAL FUND UNITS:
SBI Mutual Fund - Magnum Insta Cash Fund – DDR 10 16,895,219.78
SBI Mutual Fund - Premier Liquid Fund - Instl. Plan – DDR 10 20,267,965.11
Principal Mutual Fund - Cash Mngt. Fund - Liquid Institutional Premium - DDR 10 385,846,096.89
Principal Mutual Fund - Cash Management Fund – Floating Rate Fund FMP 10 12,224,963.29
Principal Mutual Fund - Cash Management Fund – Institutional Plan - DDR 10 680,784.87
As at
31/03/2008
Rs. in lacs
SCHEDULE “G”
INVENTORIES
(As Certified by the Management)
(Refer Note A-6 of Schedule 'N')
Stores, Spare Parts, Fuel 5,389.72
Packing Materials (at or below cost) 48.95
Stock-In-Trade
Raw materials on hand & in transit 2,485.58
Finished Goods 4,135.93
Stock in process 87.79
Packing Drums & Scrap 269.90
Coke dust, Gypsum 40.29
Shares (Refer Statement below) 8.58
TOTAL 12,466.74
Investments in shares (Stock in trade) As at 31/03/2008

Face No of Amount
Value per Shares Rs. in
Particulars Share Rs. lacs
Quoted
Reliance Industries Ltd 10 561 0.44
Reliance Communication Ltd. 5 553 —
Reliance Energy Ltd. 10 41 —
Reliance Natural Resources Ltd. 5 553 —
Reliance Capital Ltd. 10 27 —
Grasim Industries Ltd. 10 700 2.01
Ranbaxy Laboratories Ltd. 5 5,426 5.60
Reliance Industrial Infrastructure Ltd. 10 1,900 0.19
Indian Telephone Industries Ltd. 10 3,400 0.34
IPCL 10 — —
TOTAL 8.58

Schedules LIMITED

As at
31/03/2008
Rs. in lacs
SCHEDULE “H”
Sundry Debtors (Unsecured unless otherwise stated)
(a) Over 6 Months
Considered good (Secured) 30.00
Considered good 657.60
Considered doubtful 276.47
(b) Other Debts (considered good) 5,787.53
6,751.60
Less : Provision for doubtful debts 276.47
TOTAL 6,475.13
SCHEDULE “I”
CASH AND BANK BALANCES
1. Cash on hand 9.86
2. Cheques, Stamps, Hundi papers on hand 0.05
3 Balance with Scheduled Banks
a. in Current Account 965.40
b. in Fixed Deposits (Pledged with Bank as Margin Money) 2.76
4. Post office Savings Deposit (Pass Book Pledged with Central Excise Department) 0.01
5 Balance with Dhrangadhra People's Co-op Bank Ltd. (Maximum amount outstanding Rs. 0.85 lacs) 0.02
TOTAL 978.10
SCHEDULE “J”
LOANS AND ADVANCES (Unsecured, Considered Good)
Advances recoverable in cash or kind or for value to be received (Including advance for capital items) 1,668.89
Inter Corporate Deposits – Considered Good 0.10
Staff loans 48.45
Interest accrued on Inter Corporate Deposits 26.95
DCW Pigments Ltd. —
Electricity and other Deposits 150.93
Balance with Customs, Central Excise etc. 4,057.74
Claims against Insurance, Railways, Custom etc. 107.58
Mat Credit Entitlement 472.25
6,532.89

LIMITED Schedules
As at
31/03/2008
Rs. in lacs
SCHEDULE “K”
LIABILITIES
Acceptances against Letters of Credit 13,863.49
*Sundry Creditors 3,806.58
Advances from customers and consignees 1,418.06
Trade and Other Deposits 425.63
Unclaimed Dividend # 27.15
Unclaimed Public Deposit Monies # 0.04
Other Liabilities 1,030.45
Interest accrued but not due on Loans 267.34
TOTAL 20,838.74
SCHEDULE “L”
PROVISIONS
Proposed/Final Dividend - Equity 588.46
Tax on Proposed/Final Dividend 100.01
Provision for Tax (net off Advance Tax and Tax 233.09
Deducted at Source)
Provision for fringe benefit tax 27.00
Provision for Retirement & Other Emp. Benefits 625.06
TOTAL 1,573.62
SCHEDULE “M”
A. CONTINGENT LIABILITIES NOT PROVIDED FOR :
1. Disputed Sales Tax Demands 982.37
2. Disputed Excise Demands 304.97
3. Disputed Customs Demands 197.20
4. Company’s contribution to ESI not made pursuant to petitions for exemption pending before
High Court 85.87
5. Lease Rent, Local Cess, Interest on Lime Stone, Surcharge,
Stamp Duty, Octroi & Water and Electricity charges 1,826.41
6. Disputed Industrial relations matters 293.12
TOTAL 3,689.94
B. GUARANTEE AS A MEMBER OF THE ALKALI MFRS. ASSN.

(A Company Limited by Guarantee) Rs. 500

Schedules LIMITED

SCHEDULE - “N”
SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE CONSOLIDATED FINANCIALS FOR THE YEAR
ENDED 31ST MARCH, 2008.
SIGNIFICANT ACCOUNTING POLICIES
1. NATURE OF OPERATIONS
DCW Limited [“Parent Company”], a public limited company, together with its subsidiary, operates as an integrated Chemical
Manufacturing organization.
The Parent Company’s shares are listed for trading on the National Stock Exchange and the Bombay Stock Exchange in India and
its Global Depository Receipts [covering equity shares of Parent Company] are listed on the Luxembourg Stock Exchange.
2. BASIS OF PRESENTATION
The financial statements have been prepared to comply with the Accounting Standards referred to in the Companies (Accounting
Standards) Rule 2006 issued by the Central Government in exercise of the power conferred under subsection [I] (a) of Section 642
and the relevant provisions of the Companies Act, 1956 [the ‘Act’]. The financial statements have been prepared under the historical
cost convention on accrual basis. The accounting policies have been consistently applied by the Group unless otherwise stated.
3. PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the financial statements of the Parent Company and its subsidiary, DCW Pigments
Ltd., incorporated in India with effective group shareholding of 99%.
The consolidated financial statements have been combined on a line-by-line basis by adding the book values of like items of assets,
liabilities, income and expenses after eliminating intra-group balances/transactions and un-realised profits in full. The amounts
shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the Parent Company and
its share in the reserves of the consolidated entities.
The consolidated financial statements are presented, to the extent possible, in the same format as that adopted by the Parent
Company for its separate financial statements.
4. SYSTEM OF ACCOUNTING
(A) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.
(B) Financial statements are prepared on historical cost basis and as a going concern, adjusted for revaluation/dimunition in
value of certain fixed assets.
5. USE OF ESTIMATES
The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts
reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the
period in which they materialize.
6. FIXED ASSETS AND DEPRECIATION

(A) Fixed Assets
Fixed Assets are stated at their original cost net of Cenvat Credit where applicable (including expenses related to acquisition
and installation) except certain Fixed Assets which are adjusted for revaluation.
(B) Depreciation and Amortisation
Depreciation is charged in the Accounts on straight line method as under:
(a) On assets revalued at Sahupuram Unit on 31-3-93 @ 3% on the revalued cost based on revision in useful life estimated
by the valuer (Refer Note B2).
(b) On fixed assets added pursuant to the amalgamation of Pantape Magnetics Limited with the Company, at rates specified
in Schedule XIV to the Companies Act, 1956 on the revalued cost.
(c) On balance fixed assets of the company at rates specified in Schedule XIV to the Companies Act, 1956 on the original cost.
(d) On fixed assets added/disposed of during the year, on pro-rata basis with reference to the month of addition/
disposal.

LIMITED Schedules
(e) On Technical Know-how fees at 33.33%.
7. REVENUE RECOGNITION
Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will follow to the
Company.
(a) Sales: Revenue from sale of goods is recognized when significant risks and rewards of ownership of the goods are transferred
to the customer and is stated net of trade discounts, excise duty, sales returns and sales tax.
(b) Interest: Revenue is recognized on time proportion basis taking into account the outstanding amount and the applicable rate
of interest.
(c) Dividends: Revenue is recognized when the right to receive payment is established.
8. EXPENDITURE DURING CONSTRUCTION AND ON NEW PROJECTS

In the case of new projects and in the case of modernisation/expansion of existing units, interest on borrowings for the same and
all pre-operative expenditure, incurred during implementation upto the date of installation are included under Capital Work in
Progress and capitalised by adding pro-rata to the cost of the assets.
9. INVESTMENTS
The Company’s investments comprise long term and current investments. Long Term investments are stated at cost less permanent
dimunition, if any, in value. Current investments are stated at lower of cost or market value.
10. INVENTORIES
Inventories are valued at lower of cost and net realisable value except stores, spares and stock in process which are valued at
cost, packing materials which are valued at or below cost and scrap and by products which are valued at net realisable value.
Cost is computed on weighted average basis and includes cost of conversion and other costs incurred in bringing the inventories
to their present location and condition.
11. ACCOUNTING FOR CENVAT AND SERVICE TAX CREDITS

Cenvat credit available on Raw Materials, Fuel and Packing materials, stores, spares and Capital goods and Service tax credit
on services availed are accounted for by reducing purchase cost of the related material or the expenses respectively and Cenvat
Credit available on fixed assets is accounted by reducing the same from the cost of respective fixed assets.
12. FOREIGN CURRENCY TRANSACTIONS

(a) Transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of Transactions.
(b) Monetary items denominated in foreign currencies (such as cash receivables, payables, etc.) outstanding at the year end,
are translated at exchange rate applicable as of that date.
(c) Non-monetary items denominated in foreign currency (such as investments, fixed assets, etc) are valued at the exchange
rate prevailing on the date of transaction.
(d) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted in the Profit &
Loss Account.
(e) Premium/discounts on forward exchange contracts are amortised over the life of the contract and recognised in the Profit and
Loss account, exchange differences on such contracts are recognized in the profit and loss account in the reporting period
in which the exchange rates change.
13. RESEARCH & DEVELOPMENT EXPENDITURE

Revenue Expenditure on Research & Development is charged against the Profit of the year in which it is incurred. Capital
expenditure on Research & Development is shown as an addition to fixed assets.
14. BORROWING COSTS

Borrowing costs attributable to acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that

Schedules LIMITED

asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing
costs are recognized as an expense in the period in which they are incurred.
15. EMPLOYEE BENEFITS
(a) Contributions to Provident and Superannuation Funds are made to recognised funds and are charged to Profit & Loss Account.
The interest rate payable by recognized Provident Fund shall not be lower than the statutory rate of interest declared by
Central Government and shortfall, if any, shall be made good by the Company.
(b) The company has created an Employees’ Group Gratuity Fund which has taken a Group Gratuity Assurance Scheme with
the Life Insurance Corporation of India. Premium charged by the Life Insurance Corporation of India, based on actuarial
valuation is debited to the Profit and Loss account.
(c) Liabilities towards Leave Encashment Benefit is provided for based on actuarial valuation done at the year end.
(d) Contribution to Employee Pension Scheme 1995 are accounted on accrual basis with corresponding remittance made to
Government Provident Fund authority.
16. PROVISIONS & CONTINGENCIES

(A) A provision arising out of a present obligation is recognized when it is probable that an outflow of resources will be required
to settle the obligation and the amount can be reasonably estimated.
(B) Wherever there is a possible obligation that may, but probably will not require an outflow of resources, the same is disclosed
by way of contingent liability.
(C) Show Cause Notices are not considered as Contingent Liabilities unless converted into demand.
17. TAXES ON INCOME

Income tax expenses comprises current tax and deferred tax charge or credit. Deferred tax assets/liabilities are measured by
applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising
on account of unabsorbed depreciation under tax laws is recognised only to the extent there is virtual certainty of its realisation
supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent
there is reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Asset is reviewed
based on developments to reassess realisation.
18. IMPAIRMENT OF ASSET

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. Any such
impairment loss is recognized by charging it to the profit and loss account. A previously recognized impairment loss is reversed
where it no longer exists and the asset is restated to that effect.
NOTES FORMING PART OF ACCOUNTS

AS PER STANDALONE ACCOUNTS OF DCW LIMITED.
Since this is the first year of preparation of consolidated financial statements previous year figures have not been given.
Pramod Kumar Jain

LIMITED Schedules
FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
For the year ended

31/03/2008
Rs. in lacs
SCHEDULE “1”
SALES (less Rebates and Trade Discount but
including excise duty)
Direct Sale * 46,904.86
Consignment Sales 30,118.40
Export Sales 9,116.76
Other Sales * 224.94
Sale of Services (TDS Rs. Nil Previous year Rs. 69.75 lacs) —
TOTAL 86,364.96
* Includes Sale of Traded Goods Rs. 9.01 (Previous Year Rs. 33.75 lacs)
SCHEDULE “2”
OTHER INCOME
Profit on Sale of Investments 1.12
Profit on Sale of Fixed Assets 6.96
Unclaimed balance written back 40.45
Dividend received on current Investments 35.84
Dividend received on Long Term Investments 0.99
Bad Debts Recovered 0.34
Gain on Foreign Exchange Transactions (Net) 568.34
Miscellaneous Income 606.71
TOTAL 1,260.75
SCHEDULE “3”
MANUFACTURING AND OTHER EXPENSES
1. Consumption of Materials : Raw Materials
Stock in hand and in process as at opening 2,896.36
Add : Purchases 41,711.60
Less : Closing stock in hand & in process (including taxes duties etc.) 2,485.58
TOTAL 42,122.38
2. (a) INCREASE/DECREASE IN STOCK
Closing Stock :
Manufactured Products 3,632.96
Packing Drums and Scrap 269.89
Coke Dust & Gypsum 40.29
Stock of Traded Shares 8.58
4,039.51
Opening Stock :
Manufactured Products 1,619.03
Packing Drums and Scrap 35.77
Coke Dust & Gypsum 54.16
Stock of Traded Shares 8.25
1,775.30
Opening Stock - Closing Stock (2,264.21)

Schedules LIMITED
For the year ended

31/03/2008
Rs. in lacs
(b) Increase/Decrease Excise Duty in Finished Goods Stock
Closing Stock Excise Duty (502.97)
Opening Stock in Excise Duty 168.00
(334.97)
(c) Purchases for resale (Net of stock of traded goods capitalised/written off) 9.26
TOTAL (2,589.92)
3. SALARIES, WAGES & BENEFITS TO EMPLOYEES
Salaries Wages 3,473.89
Contribution to Provident and other Funds 429.72
Employees’ Welfare 353.71
TOTAL 4,257.32
4. Power and Fuel 13,400.19

5. OPERATION AND MAINTENANCE
Repairs and Maintenance - Buildings 373.48
Repairs and Maintenance - Plant & Machinery 2,117.81
Repairs and Maintenance - Other Assets 195.78
Packing Charges 1,812.78
Other Operation & Maintenance Expenses 1,260.73
5,760.58
6. ASSETS SOLD OR WRITTEN OFF

Fixed Assets discarded, obsolete, written off 309.13
Less : Drawn from Revaluation Reserve (284.15)
24.98
Loss on Sale of Fixed Assets 31.81
(Unserviceble etc. written off)
56.79
7. ADMINISTRATION EXPENSES
Rent 25.59
Rates, Taxes and licence fees 63.65
Insurance 182.02
Wealth tax paid 1.30
Donation 1.15
Other expenses 812.80
1,086.51
8. SELLING AND DISTRIBUTION

Freight, Transportation, Loading and Other 1,593.75
Charges (Net)
Commission to wholesalers/others 446.86
Cash discount 58.58
Octroi - Consignment Sale 7.13
2,106.32

LIMITED Schedules
For the year ended

31/03/2008
Rs. in lacs
9. (a) PAYMENT TO AUDITORS
(i) Audit Fees 5.00
(ii) Tax Audit 1.25
(iii) Retainer fees 3.60
(iv) Other Services 1.96
(v) Reimbursement of Expenses 3.17
14.98
(b) Details of Directors’ Remuneration under Section 198
(i) Managing Director’s and Whole time Directors’ Remuneration :
Salary 96.00
Perquisites on House 9.60
Gas, Electricity expenses 10.64
Company’s Contribution to PF 8.64
Leave Travel Concession 4.93
Medical Expenses 10.82
Company’s Contribution to Superannuation 10.80
Commission 283.68
(ii) Directors Sitting Fees 2.13
437.24
Less : Amount Capitalised 39.48
397.76
TOTAL 66,612.91
SCHEDULE “4”
INTEREST AND FINANCE CHARGES
Fixed loans 899.98
Others 557.03
1,457.01
Less : Interest from banks & others (TDS Rs. 22.10 lacs) (Previous Year Rs. NIL) (108.67)
TOTAL 1,348.34
SCHEDULE “5”
DEPRECIATION
Depreciation on Fixed Assets for the year 3,026.55
3,026.55
Less : Drawn from Revaluation Reserve 23.70
TOTAL 3,002.85
Pramod Kumar Jain

‘100 YEARS OF INSPIRATION’ Sahupuram Facility
‘50 years of excellence and innovation’
The Sahupuram Chemical Complex was commissioned in 1959 as a Chlor-alkali plant in one of the
most remote corners of India in the Tuticorin District of Tamilnadu. Over the years, the Company
has expanded this facility by setting-up, a Liquid Chlorine plant, India’s first Trichloroethylene
plant, first of its kind Beneficiated Ilmenite facility in the world, a PVC Resin plant, India’s first
VCM storage facility and a Captive Power Plant. Recently a new Greenfield Caustic Soda unit was
commissioned with the latest membrane technology resulting in substantial expansion in capacity.
A new 50 MW Thermal Cogeneration Captive Power Plant is currently under the process of
being commissioned. This has not only made DCW one of the pioneers in the Chemical Industry
in India but has also facilitated the District’s industrial growth. Today, Tuticorin port is the fourth
busiest port in India and the region is attracting considerable Industrial activity. This year will
mark the 50th Anniversary of the plant which truly has been the backbone of DCW and has
played a pivotal role in the success of the Company over the years.
“Padma Bhushan”
Sahu Shriyans Prasad Jain Then
1908-1992
Our Founder Chairman
B orn on November 3 1908, Sahu Shriyans Prasad Jain

has been the most important source of inspiration to the
Company owing to which it is being run successfully even today.
Not only was Mr. Jain an industrialist far ahead of his time but
he was also a leader, a philanthropist, an activist and a visionary
whose contribution to the country in the fields of education,
health care, social welfare and commerce have been far reaching
till today. On his centenary year we wish to pay tribute to this
truly noble Indian.
Now
dcw_ar_2008.indd 2 5/28/2008 4:16:30 PM

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Annual Report
2007-2008
dcw_ar_2008.indd 1 5/28/2008 4:16:27 PM

DCW Ltd. - Annual Report - 2007-2008

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DCW Ltd. - Annual Report - 2007-2008

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B orn on November 3 1908, Sahu Shriyans Prasad Jain

dcw_ar_2008.indd 2 5/28/2008 4:16:30 PM

BOARD OF DIRECTORS AUDITORS

Smt. Satyawati Jain REGISTERED OFFICE

Shri F.H. Tapia

Shri Yuvaraj Saheb of Dhrangadhra

DCW Limited • Annual Report 2007-2008 1

2 DCW Limited • Annual Report 2007-2008

DCW Limited • Annual Report 2007-2008 3

12. Directors: of 4% to 5% over the next 3 years

4 DCW Limited • Annual Report 2007-2008

DCW Limited • Annual Report 2007-2008 5

1. Company’s philosophy on Code of Corporate Governance:

• Size of the Board:

* Holds 1,04,000 Equity Shares of Rs. 2 each of the Company.

6 DCW Limited • Annual Report 2007-2008

3. Audit Committee: 49 of the Listing Agreement.

DCW Limited • Annual Report 2007-2008 7

Dr. Shashi Chand Jain, Shri Pramod Kumar 7. Disclosures:

8 DCW Limited • Annual Report 2007-2008

(2) Remuneration Committee: 9. General Shareholders information:

DECLARATION OF COMPLIANCE WITH

DCW Limited • Annual Report 2007-2008 9

Market price data: Shareholding Pattern as on 31.03.2008:

10 DCW Limited • Annual Report 2007-2008

Dematerialisation of shares: 18,56,00,925 Equity Outstanding GDRs/ADRs/Warrants/convertible

Address for correspondence:

Auditors Certificate on Clause 49 Compliance

DCW Limited • Annual Report 2007-2008 11

2. Installation of energy efficient lighting

3. Fan less cooling towers

4. Cost Improvements Programme

1. Researches and Development:

1.1.2 . Capacity enhancement and quality improvement for BI

2. Expenditure on Research & Development:

(i) Capital Rs. 43.25 lacs

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

12 DCW Limited • Annual Report 2007-2008

REQUISITE DATA IN RESPECT OF ENERGY CONSUMPTION

Particulars Current Previous Current Previous Current Previous

DCW Limited • Annual Report 2007-2008 13

(B) Consumption per unit of Production

Caustic Soda Unit PVC Unit Soda Ash Unit

Particulars Current Previous Current Previous Current Previous

Annexure to the Directors’ Report

14 DCW Limited • Annual Report 2007-2008

AS AT 31ST MARCH, 2008

DCW Limited • Annual Report 2007-2008 15

16 DCW Limited • Annual Report 2007-2008

Gross Sales 8,636.50 215.37 7,541.98 173.46

Fixed Assets – Gross Block 8,398.32 209.43 6,019.42 138.44

Net Block 7,111.06 177.33 4,969.66 114.30

Export Earnings 911.17 22.72 716.70 16.48

Earning Before Depreciation and Interest 944.42 23.55 633.94 14.58

Interest 134.83 3.36 67.06 1.54

Earnings Before Depreciation 809.59 20.19 566.88 13.04

Depreciation 300.29 7.49 253.29 5.83

Earnings Before Tax 509.30 12.70 313.59 7.21

Current 57.50 1.43 34.72 0.80

Fringe Benefit Tax 6.00 0.15 7.36 0.17

Tax adjustment of previous year – – – –