DCW Ltd. - Annual Report - 2006-2007

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 Yuvraj 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
68th
State Bank of Saurashtra
Annual Report
City Union Bank Ltd.
2006-2007
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 Ò Annual Report 2006-2007

LIMITED Directors’ Report
TO THE MEMBERS Caustic Soda and PVC works during lower due to additional tax provisions
Your Directors present their 68th Annual the month of August – September’06 as mentioned above.
Report and Audited Accounts for the lasting for 39 days, which has affected
the sales by about Rs. 75 crores. The 4. Exports:
Financial Year ended 31st March, 2007:
Gross Profit for the year increased from The Company’s exports increased
1. Financial Results: Rs. 55.35 crores to Rs. 56.69 crores. to Rs. 70.96 crores as compared to
The profit before tax amounted to Rs. 67.36 crores in the previous year.
31-3-2007 31-3-2006
(Rs. in lacs) (Rs. in lacs) Rs. 31.36 crores as against Rs. 32.29 This 5% increase in exports was
Sales 75,327.80 71,024.15 crores in the previous year. After mainly on account of increase in
providing Rs. 3.02 crores for current Beneficated Ilmenite exports coupled
Gross Profit 5,668.77 5,535.05
taxes and Rs. 0.74 crores towards with better price realization on
Less : Provisions
Fringe benefit taxes, the profit before Beneficated Ilmenite.
Depreciation 2,532.88 2,305.56
deferred tax is Rs. 27.60 crores as
Profit before Tax 3,135.89 3,229.49 5. Divisionwise Performance:
against Rs. 33.14 crores. The profit
Tax: Current 347.24 277.49 after provision of deferred tax is (a) PVC Division
Fringe
Rs. 20.17 crores against previous The turnover of the division was
Benefit Tax 73.58 40.00
MAT Credit years Rs. 27.27 crores. Deferred Tax Rs. 372.18 crores as compared
available for is only a provision as per guidelines to Rs. 350.92 crores, registering
set off (44.90) (272.35) and is not an outflow. an increase of 6%. This increase
Tax adjustments in sales was mainly on account
of Previous Year — (130.00)
The Net Profit has been lower by
Rs. 7.10 crores, which was mainly of better realization on PVC. The
375.92 (84.86) company sold 76533 MT of PVC
on account of Additional Tax
Profit after Provision of Rs. 6.15 crores including resin compared to 75260 MT in
Current Tax & deffered tax provision of Rs. 1.56 the previous year. This increase in
Tax Adjustments 2,759.97 3,314.35 crores compared to previous year. sales was inspite of the illegal strike
Deferred Tax 743.07 587.43 However even considering the strike of 39 days which had affected
Profit after Tax 2,016.90 2,726.92 at Sahupuram Company’s works as turnover and profitability of this
Add: Balance mentioned above, the Company division. All major user segments
brought forward 3,027.73 2,894.90 are recording good demand and
was able to achieve 6% increase in
Profit available turnover and 2% increase in gross PVC industry continues to show
for Appropriation 5,044.63 5,621.82 positive growth. The Government
profit. However, net profit has been
Appropriations : has identified irrigation, power
General Reserves 2,000.00 2,000.00 and infrastructure as thrust areas
Dividend and increased activity in these
Interim 345.09 — sectors are likely to boost demand
Final 172.54 517.63 of PVC Resin.
Dividend (b) Caustic Soda Division:
Distribution Tax 86.45 76.43
Balance carried The turnover of the division was
forward 2,440.55 3,027.76 Rs. 217.61 crores as compared to
Rs. 204.17 crores in the previous
2. Dividend: year, registering an increase of
7% in the sales. This increase
Your Directors recommend payment
in turnover was mainly due to
of Final Dividend at Re. 0.10 per
better price realisation on Caustic
equity share of Rs. 2/- each. The
Soda during the year. The illegal
aggregate dividend declared for the
strike has affected turnover and
year including the interim dividend of
profitability of this division
Rs. 0.20 per equity share is Rs. 0.30
during the year. The production
per equity share of Rs. 2/- each.
of Caustic Soda was 56210 MT
3. Operations: as compared to 60100 MT in the
previous year.
Sales during the year were Rs. 753.28
crores as compared to Rs. 710.24 (c) Soda Ash Division
crores recorded in the previous year, The turnover of the division was
registering an increase of 6%. The Rs. 157.22 crores as compared to
sales would have been more but Rs. 143.56 crores in the previous
due to an illegal strike at Company’s year registering a growth of 10%.

LIMITED
The company produced 80816 key basis by Thermax Ltd., is as 8. Corporate Governance:
MT of Soda Ash (previous year per the schedule. This project The report on Corporate Governance
87340 MT), 18299 MT of Soda Bi is expected to be completed by is annexed to this report.
Carb (previous year 18810 MT) end of this financial year. On
and 1599 MT of Ammonia Bi implementation of this project, 9. Conservation of Energy, Technology
Carbonate (previous year 2721 MT) the cost of generation of power Absorption and Foreign Exchange
during the year. The Company and steam will come down Earnings and Outgo:
also produced 35913 MT of substantially thereby improving Information pursuant to Section 217
detergents compared to 31815 the profitability of the Company. (1) (e) of the Companies Act, 1956,
MT in the previous year. (d) Solway Towers at Dhrangdhra read with the Companies (Disclosure
Unit of Particulars in the Report of the
6. Projects Implemented and Under
Board of Directors) Rules 1988 is set
Implementation: Solway Towers installed at the
out in the Annexure forming part of
(a) Increase of Capacity of Soda Ash Unit have still to
this Report.
Beneficated Ilmenite Plant: be commissioned as further
capital expenditure is required 10. Particulars of Employees:
The project for increase in to make them operational. An
Beneficated Ilmenite capacity Information in accordance with
assignment has been given to
from 30000 TPA to 42000 TPA, has Section 217(2A) of the Companies
an Internationally renowned
been completed during March’07 Act, 1956, read with the Companies
Company in Soda Ash to suggest
and has started manufacturing (Particulars of Employees) Rules, 1975
further improvements necessary
Beneficated Ilmenite at higher is set out in the Annexure forming part
to commission the Towers.
capacity from April’07 onwards. of this Report.
As Beneficated Ilmenite is export- 7. Fixed Deposits:
11. Environment and Safety Measures:
oriented product, this will result The Company has not accepted
in increased exports and also The Company is committed to
any fresh Deposits during the year.
contribute towards increasing the Industrial Safety and Environment
Deposits matured but not claimed
bottom line from the current year Protection and these are on going
as at the end of the financial year,
onwards. processes at the Company’s various
amounted to Rs. 0.39 Lakhs. None
plants. The Sahupuram Unit has
(b) Conversion of Mercury Cells to of these deposits have been claimed
been granted ISO 14001 Certificate
Membrane Cells at Caustic Soda since then.
for complying with environment
Unit
protection and safety.
The Company’s project for
conversion of mercury cells to 12. Directors:
membrane cells at its Caustic Dr. S.C. Jain, Shri P.K. Jain and
Soda Unit at Sahupuram, which Dr. V.H. Joshi, Directors, retire by
is being implemented by UHDE rotation at the forthcoming Annual
India Ltd., is in the advanced General Meeting, and being eligible,
stage of implementation and is offer themselves for reappointment.
expected to be completed by Shri S.K. Jain, Vice Chairman &
August 2007. On completion of Managing Director of the Company
the project production capacity ceased to be a Director with effect
of the Caustic Soda will increase from 1st August, 2006 due to his
from present 175 TPD to 283 TPD. ill health. Mr. S.K. Jain has been
This conversion from mercury with the Company since 1969 and
will also result in substantial joined the Board in 1989 and was in
savings in power consumption charge of the Caustic Soda division
for manufacturing Caustic Soda of the Company. The Board has put
thereby increasing the bottom on record its appreciation for the
line of this division. valuable service rendered by Mr. S.K.
(c) Thermal Co-Generation Power Jain during his long tenure.
Plant at Sahupuram Unit Mr. N.R. Ruia, Director of the
The Company’s project of Company passed away in April, 2007.
Thermal Co-generation Plant for He was on the Board for more than
generating 50 MW of power and two years. The Directors have placed
85 TPH steam at its Sahupuram on record their condolences on his
Unit, being executed on turn demise.

LIMITED
Smt. Vandana Jain has been appointed will not only result in substantial
as an Additional Director and also capacity addition but also will bring
as Whole Time Director with effect down the consumption of power in
from 1st August, 2006. Mr. R.V. Ruia this division which will go a long way
has been appointed as a Director in strengthening the bottomline.
with effect from 19th May, 2007 in The capacity addition in Beneficiated
the casual vacancy caused by the Ilmenite Plant will make further growth
demise of Mr. N.R. Ruia. Shri Bakul in the division. Also better realization
Jain who was Executive Director of on Beneficated Ilmenite exports will
the Company has been appointed as help in improving the bottomline of
Managing Director of the company this division.
with effect from July 27, 2006.
Resolutions have been incorporated in Soda Ash Division
the notice convening the forthcoming The Soda Ash Industry continues to
Annual General Meeting for the grow at a compounded rate of 4 %
appointment of Ms. Vandana Jain and to 5% per annum and this trend is
Mr. R.V. Ruia, and Mr. Bakul Jain. expected to continue due to strong
demand from end-user industries.
13. Auditors and Auditors’ Report: Domestic prices of soda ash move
M/s. V. Sankar Aiyar & Co., Chartered in line with international prices
Accountants-Statutory Auditors of the due to the threat from imports. The
Company retire at the forthcoming decreasing trend of import duties in
Annual General Meeting and are India is a cause of concern as decline
eligible for reappointment. Regarding in landed costs will exert pressure on
the qualifaction in the Auditors domestic prices.
Report, the notes to the Accounts PVC Division
referred to in the Auditors Report are Internal Control Systems
The Company, one of the six
self explanatory and do not call for The Company has an adequate internal
producers of the PVC resin and despite
any further clarification. control procedure commensurate
competition, has maintained its market
with the nature of its business and
share of nearly 10%. With introduction
14. Cost Audit: size of its operations. Internal Audit
of Value Added Tax (VAT) in Tamilnadu
In accordance with the directions is conducted on a regular basis by
and Pondicherry from January’07,
received from the Department of an independent firm of Chartered
the Company’s competitiveness
Company Affairs, the Cost Audit of Accountants. However the Board of
and profitability has improved. Also
the Company’s Soda Ash and Caustic Directors are re-examining the scope
with the commissioning of Thermal
Soda Divisions are being conducted of Internal Audit looking into the size
Co-Generation plant at Company’s
for the Financial Year 2006-2007 of operations of the Company.
Sahupuram unit, the cost of power
by Cost Auditors, M/s. N.D. Birla & and steam used for manufacturing The reports of the internal audit along
Company and M/s. R. Nanabhoy PVC will come down strengthening with comments from the management
& Company respectively. Their the bottomline. are placed for review before audit
appointments were approved by the committee. The Audit Committee also
Department of Company Affairs. Caustic Soda Division scrutinizes all the programmes and
The Cost Audit of these Divisions is the adequacy of the internal controls.
The company continues to be a major
conducted every year and the Reports
player in the South India with a market Human Resources
are submitted by the Cost Auditors to
share of an approximately 15%. The
the Central Government. The Company has been following a
demand for caustic soda is expected
standard procedure for recruitment
to grow at a steady rate of 4% to 5%
15. Management Discussion and Analysis of best personnel for all the
over the next 3 years due to healthy
Report: departments and is making constant
growth in demand and production
and continuous efforts to retain and
Outlook in end-user industries. Production
groom them to meet its present and
The Company has a diversified in end-user industries is expected to
future requirements. The current
operation with three business segments grow at healthy rates especially in
strength is 2336 employees. The
viz. PVC, Chloro Alkali and Soda Ash. aluminium, which is expected to grow
Company sponsors employees
It is thus reasonably protected from at 11% over the next three years.
for various seminars on finance,
the vagaries of business cycles of The ongoing conversion of Mercury operations, marketing and human
these products. Cell to Membrane Cell technology resource development to update their

LIMITED
skills and develop close co-ordination (b) selected such accounting policies understanding prevailed throughout
with their counterparts in industries. and applied them consistently the year except during the short period
This is basically done to enhance their and made judgements and of illegal strike of 39 days during the
skills in order to achieve an optimum estimates that are reasonable and months of August-September’06 at
output from them. prudent so as to give a true and Company’s Sahupuram Unit. The
fair view of the state of affairs Company has entered into a long-
Cautionary Note
of your Company at the end of term wage settlement Agreement with
Statement in this report describing the financial year and of the profit of the workers at Sahupuram unit.
company’s objectives, projections, your Company for that period;
estimates, expectations and 19. Acknowledgement:
(c) taken proper and sufficient
predictions may be “forward looking The Board places on record their
care for the maintenance of
statements”. Actual results could grateful appreciation for the
adequate accounting records in
differ materially from those expressed assistance and co-operation received
accordance with the provisions
or implied due to variation in prices from the Financial Institutions and
of the Companies Act, 1956 for
of raw materials, cyclical demand and the Banks.
safeguarding the assets of your
pricing in the Company’s principal
Company and for preventing
markets, changes in Government
and detecting fraud and other
regulations, tax regimes, economic
irregularities; and
developments within India and other
incidental factors. (d) Prepared the Annual Accounts on
a going concern basis.
16. Directors’ Responsibility Statement:
In terms of Section 217(2AA) of the 17. Insurance:
Companies Act, 1956 your Directors All the properties of the Company are On behalf of the
have: adequately insured. Board of Directors
(a) Followed in the preparation of the Dr. Shashi Chand Jain
18. Industrial Relations:
Annual Accounts, the applicable Chairman and Managing
accounting standards with proper The relations between the employees Director
explanation relating to material and the management were generally
departures; cordial and an atmosphere of Mumbai, 19th May, 2007

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:
Ò Size of the Board:

The Board of Directors of the Company consists of 10 Directors.
Ò 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 4 No 3 1 —
Directors (Chairman &
Managing Director)
Shri Sharad Kumar Jain * — No — — —
(Vice Chairman &
Managing Director)
Shri Pramod Kumar Jain 3 Yes 1 — —
(Managing Director)
Shri Bakul Jain 4 No 2 — —
(Managing Director)
Smt. Vandana Jain ** 3 — — — —
(Executive Director)
Promoter/Non-Executive Smt. Satyawati Jain *** 3 No — — —
Director
Non-Executive and Shri Yuvaraj Saheb of 2 No — — —
Independent Directors Dhrangadhra
Shri F. H. Tapia 3 No — — —
Dr. V. H. Joshi 3 Yes — — —
Sushil K. Jalan 3 No 6 — —
Shri N. R. Ruia 1 No — — —
* Ceased to be a Director w.e.f. August 1, 2006

** Appointed as a Director w.e.f. August 1, 2006
*** Holds 1,02,000 Equity Shares of Rs. 2 each of the Company.
Ò No. of Board Meetings held during the year along with the dates of the meeting:
During the year four Board Meetings were held on:
23.05.2006, 27.07.2006, 23.10.2006 and 29.01.2007.
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: Ò Composition, Name of Members and

Chairperson:
• Ò Terms of Reference :
The Remuneration Committee comprises
The terms of reference of this Committee 3 Non-Executive Independent Directors.
cover the matters as specified for Audit Shri F. H. Tapia is the Chairman of this
Committees under Clause 49 of the Listing Committee. Dr. V. H. Joshi and Shri Yuvaraj
Agreement as well as per the provisions of Saheb of Dhrangadhra are the other
Section 292 A of the Companies Act, 1956. members of the Committee.
Ò Attendance during the year:
Ò Composition, name of members and
There were two Remuneration Committee
Chairperson:
meetings during year held on 23rd May,
The Audit Committee comprises 3 2006 and 27th July, 2006. Shri Yuvraj Saheb
Non-Executive Independent Directors. Dr. V. of Dhrangadhra and Dr. V. H. Joshi were
H. Joshi is the Chairman of this Committee. present at the meeting of 23rd May, 2006
Shri Yuvaraj Saheb of Dhrangadhra and and all members attended the meeting of
Shri F. H. Tapia are the other members of 27th July, 2006.
the Committee. Ò Remuneration Policy:
The Remuneration of Managing Directors
Ò Meetings and Attendance during the year: and Whole-time Director is approved by
The Committee met 4 times during the year the Remuneration Committee and also
and the attendance of the Members at these by the Board (subject to the subsequent
meetings was as follows: approval by the Shareholders at the general
body meeting and such other authorities
Dates of Dr. V. H. Joshi Shri F. H. Tapia Shri Yuvaraj as the case may be). The remuneration is
Meetings Saheb of fixed considering various factors such as
Dhrangadhra qualification, experience, expertise, and
prevailing remuneration in the corporate
23.05.2006 Yes No Yes world, financial position of the Company etc.
27.07.2006 Yes Yes Yes The remuneration Structure comprises Salary,
Perquisites, Commission, and Contribution
23.10.2006 Yes Yes Yes to Provident Fund, Super-Annuation Fund
29.01.2007 Yes Yes No and other funds in accordance with the
provisions of the Companies Act, 1956. The
4. Remuneration Committee: Non-Executive Directors do not draw any
remuneration from the Company besides
Ò Terms of Reference: the sitting fees for each meeting of the
The terms of reference of this Committee Board, Audit and Remuneration Committees
attended by them.
cover the matters as specified for
Remuneration Committees under Clause Ò Details of the remuneration paid to the
49 of the Listing Agreement. Directors for the Financial year 2006-2007
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 2,40,000 7,20,960 18,75,000 — 52,35,960
Shri Sharad Kumar Jain* 8,00,000 16,68,029 2,40,320 6,25,000 — 33,33,349
Shri Pramod Kumar Jain 24,00,000 2,80,740 7,20,960 18,75,000 — 52,76,700
Shri Bakul Jain 24,00,000 2,90,204 7,20,960 18,75,000 — 52,86,164
Smt. Vandana Jain ** 16,00,000 6,00,000 4,80,640 12,50,000 — 39,30,640
Smt. Satyawati Jain — — — 15,000 15,000
Shri F.H. Tapia — — — 22,500 22,500
Dr. V.H. Joshi — — — 27,500 27,500
Shri Yuvaraj Saheb of Dhrangadhra — — — 20,000 20,000
Shri Sushil K. Jalan 15,000 15,000
Shri Nirmal Kumar Ruia — — — 5,000 5,000
* Ceased to be a Director w.e.f. August 1, 2006
** Appointed as a Director w.e.f. August 1, 2006
Sitting Fee also includes payment for Board level committee meetings.

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

Jain, Shri Pramod Kumar Jain and Shri Bakul 1. During the year, there were no transactions
Jain and Mrs. Vandana Jain are each entitled of material nature with the Promoters,
for commission @ 25% of the difference Directors or the management or relatives
between 10% of the net profits as computed etc. that may have potential conflict with
under Section 349 of the Companies Act, the interest of the Company at large.
1956, in a financial year and the aggregate
2. During the last three years, there were no
of the salary and perquisites and benefits
strictures or penalties imposed by either
paid to all the Managing Directors and
SEBI or the Stock Exchanges or any other
Executive Director in that year subject to the
statutory authority for non-compliance of
overall ceilings stipulated in Sections 198
any matter related to the Capital Market.
and 309 of the Companies Act, 1956.
3. DCW Code of Conduct:
The appointments of Managing Directors/
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 Senior
Management of the Company. The Code
The appointment of the Managing Directors/
of Conduct is posted on the website of the
Executive Director may be terminated by
Company.
either party by giving a six-month notice.
In accordance with the Securities and
No severance fee is payable on termination
Exchange Board of India (Prohibition
of appointment.
of Insider Trading) Regulations, 1992
Non-Executive Directors are not paid/ as amended, the Board of Directors of
entitled for any remuneration other than the Company formulated DCW Code
sitting fees. of Conduct for the prevention of Insider
Presently the Company does not have any Trading in the shares of the Company by
Scheme for grant of any stock option either its Directors and designated employees.
to the Directors or to the employees. The DCW Code, inter-alia, prohibits
purchase/sale of shares of the Company by
5. Shareholders’/Investors’ Grievance Committee: the Directors and designated employees,
Smt. Satyawati Jain, Non-executive Director is while in possession of unpublished price
the Chairperson of the Shareholders’/Investors’ sensitive information in relation to the
Grievance Committee. Company. A system has been put in place
Mrs. Chital V. Shah is the Compliance Officer of and Directors/Designated Employees have
the Company. been advised to take pre-clearance before
purchase/sale of the Company’s shares.
There were 94 complaints received from the
shareholders during the year. Whistle Blower mechanism is in existence
and no personnel has been denied access
All the Complaints were resolved satisfactorily.
to the Audit Committee.
There were no pending complaints as on
31.03.2007 4. Compliance with Mandatory Requirements:
The Company has complied with the
6. General Body Meetings:
mandatory requirements of the Code of
(i) Location and time where last 3 Annual Corporate Governance as stipulated under
General Meetings held: Clause 49 of the Listing Agreement with the
Year Location Date Time No. of Special Stock Exchanges. The Company has also
Resolutions complied with the requirements of amended
Passed clause 49 after it came into force.
2003-04 Dhrangadhra,
Gujarat 12.08.2004 11.00 a.m. 6 Compliance with Non-Mandatory
2004-05 Dhrangadhra, Requirements:
Gujarat 25.08.2005 11.00 a.m. 1
(1) The Board :
2005-06 Dhrangadhra,
Gujarat 06.07.2006 11.00 a.m. 1 The Company has an Executive
(ii) No Special Resolution has been passed last Chairman and hence the requirement
year through postal ballot. pertaining to reimbursement of
(iii) No Special Resolution is proposed to be expenses to a Non-Executive
conducted through postal ballot. Chairman does not arise.

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

Please refer Item No. 4 under the
heading ‘Mandatory Requirements’. ANNUAL GENERAL MEETING:
(3) Shareholders’ Rights: Ò Day & Date - : Monday, 23rd July, 2007
As the Company’s Quarterly results Ò Time : 10.00 A.M.
are published in English Newspapers Ò Venue : at the Registered Office
having circulation all over India and (at Guest House No. 2)
in a Gujarati Newspaper circulated Dhrangadhra,
in Gujarat, the same are not sent to Gujarat - 363 315,
each household of shareholders.
Financial calendar: April 2007 – March 2008:
(4) Audit qualification :
Date of Book closure: : 17th July, 2007 to
The Company move towards a
regime of unqualified financial 23rd July, 2007
statements. (both days inclusive)
(5) Training of Board Members : Dividend Payment : 27th July, 2007

The Board of Directors consists Date
of professionals with expertise in
their respective fields and industry. Listing on Stock Exchanges:
They endeavor to keep themselves The Company’s shares are listed with the following
updated with changes in economy Stock Exchanges: :
and legislation.
Ò The Mumbai Stock : Phiroze Jeejeebhoy
(6) Mechanism for evaluating Exchange (BSE) Towers, Dalal Street,
Non-Executive Board Members: Mumbai 400 023
The performance evaluation of Ò 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-
the Director being evaluated. Kurla Complex, Near
(7) Whistle Blower Policy Wockhardt, Mumbai
400 051
The Company has in existence a
system for the employees to report Annual Listing fees as prescribed has been paid
to the Management about unethical to the above Stock Exchanges for the year 2007
behaviour, actual or suspected -2008. GDRs of the Company are listed with the
fraud or violation of the Company’s Luxembourg Stock Exchange.
Code of Conduct.
DECLARATION OF COMPLIANCE WITH Stock Code : 117 (BSE), DCW (NSE)
THE CODE OF CONDUCT/ETHICS:
Demat ISIN Nos. : INE 500A01011
All the Directors and Senior Management
personnel have affirmed compliance with the (Fully Paid)
Code of Conduct/Ethics as approved and
adopted by the Board of Directors. Share Transfers : Bigshare Services Pvt.
and other Ltd., (Unit DCW Ltd.,)
8. Means of Communication Communications may E/2, Ansa Industrial
Ò The Quarterly results are published in be Addressed to Estate, Sakivihar Road,
‘Financial Express’ in all editions in India Saki Naka, Andheri (E),
including in the Gujarat edition published Mumbai 400 072.
from Ahmedabad. These are not sent email: bigshare@sify.com
individually to the shareholders.
Ò The above results are also displayed Investors’ complaints : Asst. Company Secretary
o n t h e C o m p a n y ’s w e b - s i t e v i z . may be DCW Limited
www.dcwltd.com Addressed to Nirmal, 3rd floor,
Ò There were no presentations made to the Nariman Point,
institutional investors or to the analysts. Mumbai - 400 021

LIMITED
Market price data: Shareholding Pattern as on 31.03.2007:
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 (A) Shareholding of Promoter
(Rs.) (Rs.) (Rs.) (Rs.) and Promoter Group
April, 2006 16.80 11.10 16.75 11.57 (1) Indian
May, 2006 18.45 10.00 19.90 10.00 (a) Individuals/Hindu Undivided
June, 2006 14.25 8.50 14.25 8.65 Family 28,426,965 16.48
July, 2006 12.20 8.15 11.93 9.70 (b) Central Government/
August, 2006 13.00 10.60 13.00 10.64 State Government(s) — —
September, 2006 14.40 11.75 14.30 11.75 (c) Bodies Corporate 44,515,853 25.80
October, 2006 13.70 11.55 13.70 11.00 (d) Financial Institutions/Banks — —
November, 2006 12.15 9.80 12.25 10.00 (e) Any Others (Specify) — —
December, 2006 11.85 9.45 11.87 9.32 Sub Total (A)(1) 72,942,818 42.27
January, 2007 15.75 10.80 16.00 10.80 (2) Foreign
February, 2007 15.30 11.00 15.30 11.10 (a) Individuals
March, 2007 12.70 10.10 12.70 10.20 (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) 72,942,818 42.27
(B) Public shareholding
(1) Institutions
(a) Mutual Funds/UTI 38,955 0.02
(b) Financial Institutions/Banks 93,27,673 5.41
(c) Central Government/
State Government(s) — —
(d) Venture Capital Funds — —
(e) Insurance Companies — —
(f) Foreign Institutional Investors 4,337,600 2.51
(g) Foreign Venture Capital Investors — —
(h) Any Other (specify) — —
(h-i) Foreign Banks 44,725 0.03
Sub-Total (B)(1) 13,748,953 7.97
(2) Non-institutions
Registrar and Share Transfer Agents: (a) Bodies Corporate 11,116,920 6.44
The Company has appointed Bigshare (b) Individuals 58,936,335 34.16
Services Pvt.Ltd., E/2, Ansa Industrial Estate, (c) Any Other (specify)
Sakivihar Road, Saki Naka, Andheri (East), (c-i) Clearing Member 996,694 0.58
Mumbai - 400 072 as Registrars and Share Transfer (c-ii) NRI 4,904,690 2.84
Agents of the Company. (c-iii) OCBs 6,495,180 3.76
(c-iv) Trust 123,330 0.07
The Company’s shares are traded in the Stock (c-v) Non Domestic Company 5,920 —
Exchanges compulsorily under demat mode. Sub-Total (B)(2) 82,579,069 47.86
All the applications received for transfer of
(B) Total Public Shareholding
physical shares are approved by the Share Transfer
(B)= (B)(1)+(B)(2) 96,328,022 55.83
Committee, which normally meets twice in a
TOTAL (A)+(B) 169,270,840 98.10
month depending on the volume of transfers.
Share transfers are registered and returned (C) Shares held by Custodians and against
which Depository Receipts have been
normally within 20 days from the date of
issued 3,273,750 1.90
lodgement, if documents are complete in all
GRAND TOTAL (A)+(B)+(C) 172,544,590 100.00
respects.
10 DCW Limited Ò Annual Report 2006-2007

LIMITED
Dematerialisation of shares: 16,11,40,835 Equity shares held by Outstanding GDRs/ADRs/Warrants/convertible

30,561 Shareholders comprising 93.39% of the paid up Share instruments etc.:
Capital have been dematerialised as on 31st March, 2007. Outstanding GDRs as on 31st March, 2007 represent
32,73,750 shares (1.90%). There are no further
outstanding instruments, which are convertible into
equity 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
year ended 31st March, 2007. I further state that, such compliance is neither an assurance as
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 my review on the basis of the relevant records Place : Mumbai Company Secretary
and documents maintained by the Company and furnished to Date : 19th May, 2007. CP No. - 7455
DCW Limited Ò Annual Report 2006-2007 11

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. 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, 230 supermizers have been installed resulting in saving of 41 lacs units during the year.
2. Asia 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. The conversion programme to replace inefficient tube lights in phased
manner is being carried out continuously. Also, inefficient mercury and sodium vapor–lamps were replaced by highly efficient
metal halide lamps. Annual energy saving to a tune of 6.2 lacs units is achieved.
3. Energy audit on all the motors of capacity 30 KW and above was carried out and energy conservation to a tune of 56,400
units have been achieved in installation of energy efficient motors.
4. So far, 9 Nos of cooling towers have been installed and annual energy savings to a tune of 12 lacs units is achieved.
5. 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 34 suggestions resulting in annual
savings to the tune of Rs. 33 Lacs have been implemented.
6. Plant scale trials for Yellow Iron Oxide production by recycling of Ammonium Chloride filtrate have been carried out and
observed that quality of product has not been affected. This trial has been done to increase Ammonium Chloride concentration
for energy saving in downside processes of ammonia recovery and Calcium Chloride production.
B. TECHNOLOGY ABSORPTION :
1. Research and Development:
1.1 BENEFICIATED ILMENITE AREA:
1.1.1. Process optimization to reduce cycle time and increase productivity.
Acid preheating system (designed in–house) installed in digester house which has resulted in 10% reduction
in reaction time and also 5% reduction in effluent.
With in–house modification of burner system, roaster capacity was increased from 3.2 TPH to 5 TPH.
1.1.2 . Capacity enhancement and quality improvement of UTOX
Additional filter presses and calciner have been installed to increase UTOX production from 1400 TPA to 3300
TPA.
A 9 MT capacity blender was installed to achieve uniform color values for UTOX. This consistency in quality
of UTOX has been achieved to increase UTOX sales.
1.2 PVC
1.2.1. Plant scale trials by using indigenous catalyst in place of imported one are being carried out to explore the
possibility of reducing reaction time and thus to increase productivity.
1.2.2. An effluent treatment plant was designed, supplied and erected by M/s. Ion Exchange Ltd. resulting in 85% of
effluent is recycled / reused.
1.3 CPP
1.3.1. The electrical heaters were totally replaced by steam heaters to reduce auxiliary power consumption.
1.3.2. Indigenisation of Lube oil separator control module by PLC was done with in house efforts with a saving of
Rs. 2 lacs.
2. Expenditure on Research & Development:
(i) Capital Rs. 8.02 lacs

(ii) Recurring Rs. 17.31 lacs
Rs. 25.33 lacs
(iii) Total Research & Development Expenditure as a percentage of total turnover (Net of Excise) : 0.04 percentage.

LIMITED
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.
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
2006-2007 2005-2006 2006-2007 2005-2006 2006-2007 2005-2006
1. ELECTRICITY
(a) Purchased
Unit (Lakh Kwh) – – 3.11 3.03 37.77 21.90
Total Amount – – 22.29 21.46 192.68 112.22
(Rs. in lakhs)
Rate/Unit (Rs.) – – 7.16 7.09 5.10 5.12
(b) Own Generation
(i) Through Diesel Generator
Unit (Lakh Kwh) 1,942.80 2,034.23 153.50 185.34 – –
Unit/ltr of LSHS/Diesel Oil 4.43 4.43 4.43 4.43 – –
Cost/Unit (Rs.) 4.63 3.89 4.63 3.89 – –
(ii) Through Steam Turbine Generator
Unit (Lakh Kwh) – – – – 238.25 258.57
Unit/ltr. of Fuel – – – – – –
Oil/Gas
Cost/Unit (Rs.) – – – – – –
2. Coal (specify quality and where used) – – – – – –

Total cost – – – – – –
Average rate – – – – – –
3. FURNACE OIL/LSHS/LSFO
Quantity (Kl) 47,280.26 50,074.03 3,640.14 4,072.07 – –
Total Amount
(Rs. in Lakhs) 9,680.46 8,007.41 630.34 588.04 – –
Average Rate (Rs). 17,303.34 13,911.73 17,316.45 14,440.89 – –
4. OTHERS
(i) Hydrogen
Quantity (MT) 89.513 194.840 – – – –
Total Amount (Rs. in lakhs) 42.919 72.07 – – – –
Rate/Unit (Rs.) 47,947.406 36,991.68 – – – –
(ii) Lignite
Quantity (MT) – – – – 1,13,859 1,14,095
Total Amount (Rs. in Lakhs) – – – – 1,746.96 1,602.97
Rate/Unit (Rs.) – – – – 1,534 1,405
(iii) HSD
Quantity (MT) 11.03 21.98 3.77 4.51 – –
Total Amount (Rs. in lakhs) 4.35 7.78 1.49 1.59 – –
Rate/Unit (Rs.) 38,489.90 35,386.75 39,489.90 35,386.75 – –

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
2006-2007 2005-2006 2006-2007 2005-2006 2006-2007 2005-2006
1. Electricity (Kwh) 3,026 3,002 229 226 241 243
2. Fuel Oil (Mt) 0.175 0.200 0.054 0.052 – –
3. Others
(i) Hydrogen (Kgs.) 4.12 9.73 – – – –
(ii) LSHS (MT) – – – – – –
(iii) Lignite (MT) – – – – 0.926 0.908
(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
Sr. Name Designation/ Remuneration Qualification Experience Date of Age Last employment held.
No. Nature of duties commence- Name of the Company,
ment of Designation and period
(Rupees) (Years) Employment (Years) of service
Employed for whole of the year
1 Dr. Shashi Chand Jain Chairman & 67,22,260 Ph.D (Economics) 51 01.04.1969 74 Sahu Brothers (Saurashtra)
Managing Director Pvt. Ltd.
Director - 11 years
2 Shri Pramod Kumar Jain Managing Director 67,59,450 B.A. (Hon.) 48 01.04.1969 69 Sahu Brothers (Saurashtra)
Economics Pvt. Ltd.
3 Shri Bakul Jain Managing Director 67,68,914 B.Com., MBA 23 01.09.1984 52 —
Employed for part of the year
1 Shri Sharad Kumar Jain Vice Chairman & 26,84,029 B.A. (Hons.) 49 01.04.1969 72 Sahu Brothers (Saurashtra)
Managing Director Economics Pvt. Ltd.
Director - 11 years
2 Smt. Vandana Jain Executive Director 56,06,390 B.Com. 1 01.08.2006 71 -----
3 Shri Sadhu Sr. Officer 4,31,884 B.A. 36 01.02.1971 58 ------
Sundarsingh T. (Stores)
4 Shri Ramakrishnan B.S. Officer 4,26,179 D.M.E. 31 29.03.1978 58 Shivram Engineering

(Misc. Sales) Company -
2 1/2 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 two employees, the gross remuneration shown above (subject to tax) comprise salary, perquisites, Company’s Contribution 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 Sharad Kumar 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, 2007

As at As at
31/03/2007 31/03/2006
US $ in Millions* US $ in Millions#
SOURCES OF FUNDS
Shareholders Funds:
Capital 7.94 7.73
Reserves & surplus 50.54 46.24
Loan Funds:
Secured Loans 50.04 29.31
Unsecured Loans 3.33 0.01
Deferred Tax Liability:
Deferred Tax Liability 15.23 14.06
Deferred Tax Asset (0.71) (1.58)
14.52 12.48
TOTAL 126.37 95.78
APPLICATION OF FUNDS
Fixed Assets:
Gross Block 138.44 134.39
Less: Depreciation 65.53 63.89
72.91 70.50
Capital Work-in-progress 41.39 6.95
114.30 77.45
Investments 0.11 2.49
Current Assets, Loans and Advances:
Inventories 16.19 27.07
Sundry Debtors 14.60 11.42
Cash and Bank balances 3.19 2.15
Loans and advances 20.62 12.50
54.60 53.13
Less: Current liabilities and Provisions
Liabilities 39.09 34.63
Provisions 3.55 2.66
42.64 37.30
Net Current Assets 11.96 15.84
TOTAL 126.37 95.78
* 1 US $ = Rs. 43.48
# 1 US $ = Rs. 44.63

LIMITED Profit & Loss Account
FOR THE YEAR ENDED 31ST MARCH, 2007
For the year ended For the year ended
31/03/2007 31/03/2006
US $ in Millions* US $ in Millions#
INCOME
Sales (including Excise Duty) 173.25 159.14
Less : Excise Duty 21.04 21.49
152.21 137.65
Other income 3.68 3.91
155.89 141.56
EXPENDITURE
Manufacturing and other expenses 141.61 128.19
Interest & Finance Charges 1.24 0.97
142.85 129.16
Profit Before Depreciation 13.04 12.40
Depreciation 5.82 5.16
Profit Before Tax 7.22 7.24
Provision For Tax
Current tax 0.80 0.62
Fringe Benefit Tax 0.17 0.09
MAT Credit Available for Set off (0.10) (0.61)
Tax Adjustment of Previous Year 0.00 (0.29)
Profit after Current Tax & Tax Adjustments 6.35 7.43
Deferred Tax 1.71 1.32
Profit After Deferred Tax 4.64 6.11
Add : Surplus brought forward from last year 6.96 6.49
11.60 12.60
APPROPRIATION
Transfer to General Reserve 4.60 4.48
Interim Dividend on Equity Shares 0.79 0.00
Proposed Dividend on Equity Shares 0.40 1.16
Tax on Dividend 0.20 0.17
Profit Carried forward 5.61 6.79
* 1 US $ = Rs. 43.48
# 1 US $ = Rs. 44.63

Key Financial Data LIMITED
2006-2007 2005-2006
Rs. In US $ in Rs. in US $ in
Millions Millions* Millions Millions#
Gross Sales 7,532.78 173.25 7,102.42 159.14
Fixed Assets – Gross Block 6,019.42 138.44 5,997.85 134.39
Net Block 4,969.66 114.30 3,456.58 77.45
Export Earnings 710.03 16.33 673.62 15.09
Earning Before Depreciation and Interest 621.05 14.28 596.71 13.37
Interest 54.17 1.25 43.21 0.97
Earnings Before Depreciation 566.88 13.04 553.50 12.40
Depreciation 253.29 5.83 230.56 5.17
Earnings Before Tax 313.59 7.21 322.94 7.24
Taxation
Current 34.72 0.80 27.75 0.62
Fringe Benefit Tax 7.36 0.17 4.00 0.09
MAT Credit available for set off (4.49) (0.10) (27.24) (0.61)
Tax adjustment of previous year – – (13.00) (0.29)
Deferred Tax 74.31 1.71 58.74 1.32
Earnings After Tax 201.69 4.64 272.69 6.11
No. of shares of Rs. 2/- each

(Million Nos.) @ 172.54 172.54 172.54 172.54
Earnings per Shares ( Rs. / US $ ) 1.17 0.03 1.58 0.04
Net Worth (Excl.Revaluation Reserve) 2,418.44 55.62 2,277.16 51.02
Book value per share 14.02 0.32 13.20 0.30
Gross profit to sales (%) 7.53 7.53 7.79 7.79

(Earnings Before Depreciation)
Interest coverage Ratio 11.46 11.46 13.81 13.81
Debt/Equity 0.91:1 0.91:1 0.57:1 0.57:1
Current Assets/Current Liabilities 1.28 1.28 1.43 1.43
* 1 US $ = Rs. 43.48
# 1 US $ = Rs. 44.63

LIMITED Auditor’s Report
AUDITOR’S REPORT TO THE section (4A) of Section 227 of the 2007, and taken on record
SHAREHOLDERS OF DCW LIMITED Companies Act, 1956, we enclose by the Board of Directors, we
in the Annexure a statement on the report that none of the Directors
1. We have audited the attached matters specified in paragraphs 4 and is disqualified as on 31st March,
Balance Sheet of DCW Limited as at 5 of the said Order. 2007 from being appointed as
31st March, 2007 and also the Profit a Director in terms of clause
and Loss Account and Cash Flow 4. Further to our comments in the (g) of sub-section (1) of
Statement of the Company for the year Annexure referred to in paragraph 3 Section 274 of the Companies
ended on that date, annexed thereto. above, we report that: Act, 1956;
These financial statements are the (i) We have obtained all the
responsibility of the Company’s information and explanations, (vi) In our opinion and to the best of
Management. Our responsibility is to which to the best of our our information and according
express an opinion on these financial knowledge and belief, were to the explanations given to us,
statements based on our audit. necessary for the purposes of the said accounts subject to our
our audit; observation in para 4(iv) above
2. We conducted our audit in which has consequential impact
accordance with auditing standards (ii) In our opinion, proper books
of Rs. 313.13 lacs on profits of
generally accepted in India. Those of account as required by law,
the year and reserves and read
Standards require that we plan have been kept by the Company
with the Significant Accounting
and perform the audit to obtain so far as appears from our
Policies and other notes thereon,
reasonable assurance about whether examination of those books;
give the information required
the financial statements are free (iii) The Company’s Balance Sheet, by the Companies Act, 1956 in
of material misstatement. An audit Profit and Loss Account and the manner so required and
includes examining, on a test basis, Cash Flow Statement dealt with give a true and fair view in
evidence supporting the amounts by this Report are in agreement conformity with the accounting
and disclosures in the financial with the books of account; principles generally accepted
statements. An audit also includes in India:
(iv) In our opinion, the Balance
assessing the accounting principles Sheet, Profit and Loss Account
used and significant estimates (a) In the case of the Balance
and Cash Flow Statement
made by management, as well as Sheet, of the state of affairs
dealt with by this report
evaluating the overall financial of the Company as at 31st
comply with the Accounting
statement presentation. We believe March, 2007,
Standards referred to in sub-
that our audit provides a reasonable section (3C) of Section 211
basis for our opinion. (b) In the case of the Profit
of the Companies Act, 1956,
and Loss Account, of the
to the extent applicable;
3. As required by the Companies profit for the year ended
(Auditor’s Report) Order, 2003 and except as indicated in Note
on that date, and
read together with the Companies B–15 of Schedule ‘N’ to the
(Auditor’s Report) Amendment Accounts. (c) In the case of the Cash
Order, 2004 (hereinafter referred to (v) On the basis of written Flow Statement of the cash
as the Order) issued by the Central representations received from flows for the year ended
Government of India in terms of sub- the Directors as on 31st March, on that date.

For V. Sankar Aiyar & Co.,
Chartered Accountants.
S. Venkatraman
Place : Mumbai Partner
Dated : 19th May, 2007. Membership No. 34319

LIMITED
ANNEXURE REFERRED TO IN and adequate in relation to the (b) Sub-clause (b) of sub-para (v)
PARAGRAPH 3 OF AUDITOR’S REPORT size of the Company and the of para 4 of the Order is not
TO THE SHAREHOLDERS OF DCW nature of its business. applicable as there are no
LIMITED ON THE ACCOUNTS FOR THE such transactions exceeding
YEAR ENDED 31ST MARCH 2007. (c) In our opinion, the Company the value of Rupees Five Lacs
is maintaining proper records in respect of any party in the
i. (a) The Company has maintained of inventories and no material financial year.
proper records, except in discrepancies were noticed
respect of Pantape Division, on physical verification as vi. In our opinion and according to the
showing particulars including compared to the record of information and explanations given to
quantitative details and situation inventories. us, the Company has complied with
of fixed assets. the provisions of the Sections 58A,
iii. Based on the audit procedures 58AA and other relevant provisions
(b) We are informed that the applied by us and according to the of the Companies Act, 1956 and
fixed assets, except in respect information and explanations given the rules framed thereunder, with
of Pantape Division, have to us, the Company has not granted regard to deposits accepted from the
been physically verified by or taken any loans, secured or public.
the Management with the unsecured, to/from companies, firms
assistance of external agencies or other parties listed in the register We are informed by the Management
during the year. In our opinion maintained under Section 301 of the that no order has been passed by the
the frequency of verification Companies Act, 1956. Company Law Board or National
is reasonable. As per the Company Law Tribunal or Reserve
information given to us by Bank of India or any Court or any
iv. In our opinion and according to the
the management, no material other Tribunal under Sections 58A
information and explanations given to
discrepancies as compared to and 58AA of the Companies Act,
us, having regard to the explanation
book records were noticed in 1956.
that for purchase of certain raw
respect of fixed assets verified
materials, stores, components, and
during the year.
fixed assets, alternative sources of vii. The Company has, in general, an
supply are limited with reference internal audit system commensurate
(c) Since there is no disposal of to quality, delivery schedules, with the size and nature of the
a substantial part of fixed credit period and some of the items Company’s business.
assets during the year, the purchased are of special nature,
preparation of financial and hence comparable alternative viii. We have broadly reviewed the
statements on a going concern quotations are not available for books of account maintained by the
basis is not affected on this these, there are adequate internal Company pursuant to the rules made
account. control procedures commensurate by the Central Government for the
with the size of the Company and the maintenance of cost records under
ii. (a) The inventories of finished nature of its business for the purchase Section 209(1)(d) of the Companies
goods (except goods lying with of inventories and fixed assets and Act, 1956 and are of the opinion that,
consignees and in transit), stores for the sale of goods and services. prima facie, the prescribed accounts
(except Mercury in process), During the course of our audit, we and records have been made and
spare parts and raw materials have not observed any continuing maintained. We have not, however,
(except salt at Sahupuram) failure to correct major weaknesses made a detailed examination
have been physically verified in the internal control system. of these records with a view to
by the management with the determine whether they are accurate
help of external agencies. In or complete.
v. (a) Based on the audit procedures
our opinion, the frequency applied by us, to the best of
of physical verification is our knowledge and belief and ix. (a) According to the records of the
reasonable. according to the information Company, undisputed statutory
and explanations given to dues including provident
(b) In our opinion, the procedures us, particulars of contracts or fund, investor education and
of physical verification of arrangements referred to in protection fund, employees’
inventories (except finished Section 301 of the Companies state insurance, income tax,
goods lying with consignees Act, 1956, have been entered sales tax, wealth tax, service
and in transit) followed by the in the register required to be tax, custom duty, excise
management are reasonable maintained under that Section. duty, cess and other material

LIMITED
statutory dues that are required which have not been deposited of security by way of pledge of
to be deposited regularly with on account of any dispute are shares, debentures and other
authorities, have generally as per the details mentioned securities.
been regularly deposited with below:
the appropriate authorities. xiii. The Company is not a chit fund or
x. The Company does not have any
According to the information a nidhi or a mutual benefit society.
accumulated losses at the end of
and explanations given to us, Therefore the provisions of sub- para
the financial year. The Company has
no undisputed amounts in (xiii) of para 4 of the Order are not
not incurred any cash losses during
respect of the aforesaid statutory applicable to the Company.
the financial year covered by our
dues were in arrears, as at audit and the immediately preceding
31st March, 2007, for a period xiv. In respect of shares, securities and
financial year.
of more than six months other investments dealt in or traded
from the date they became xi. On the basis of verification of by the Company, proper records
payable. records and according to the have been maintained of the
information and explanations given transactions and contracts and timely
to us, the Company has not defaulted
(b) According to the information entries have been made therein.
in repayment of dues to Financial
and explanations given to us All the investments are held by the
Institutions/Banks or Debenture
and the records of the Company, Company in its own name except to
holders.
the dues of sales tax/income the extent of the exemption granted
tax/customs duty/wealth tax/ xii. The Company has not granted any under section 49 of the Companies
service tax/excise duty/cess, loans and advances on the basis Act, 1956.

(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 2006 — — 95.79 — — 95.79

Including Penalty & Interest,
wherever applicable)
Central Excise Act, 1944 (Excise 1997 to 2006 — 102.80 214.30 11.66 — 328.76
Duty Including Penalty & Interest,
Sales Tax Legislations 1982 to 2006 — 246.24 558.69 125.55 — 930.48

(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 — 349.73 868.78 137.21 12.69 1,368.41
* 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
xv. According to the information and related information made available therefore the question of creating
explanations given to us, the Company to us and as represented to us by security or charge in respect thereof
has not given any guarantee for any the Management, funds raised on does not arise.
loans taken by others from any bank short-term basis have, prima facie,
or financial institution. not been used during the year for xx. The Company has not made
long-term investment. any public issue of any securities
during the year and therefore the
xvi. In our opinion, the term loans taken
xviii. The Company has not made any question of disclosing the end-use
during the year have, prima facie,
preferential allotment of shares during of money raised by any public issue
been applied for the purpose for
the year to parties and companies does not arise.
which they were raised.
covered in the register maintained
under section 301 of the Companies xxi. We are informed that during the
xvii. According to the information and Act, 1956. year, no instances of material fraud
explanations given to us, based on or by the Company have been
on an overall examination of the xix. The Company has not issued any noted or reported by the
balance sheet of the Company, debentures during the year and management.

For V. Sankar Aiyar & Co.,
Chartered Accountants.
S. Venkatraman
Place : Mumbai Partner
Dated : 19th May, 2007. Membership No. 34319

LIMITED Balance Sheet
AS AT 31ST MARCH, 2007
Schedule As at As at
31/03/2007 31/03/2006
Rs. in lacs Rs. in lacs
SOURCES OF FUNDS
Shareholders’ Funds :
Capital A 3,450.89 3,450.89
Reserves and Surplus B 21,973.98 20,642.55
Loan Funds :
Secured Loans C 21,758.91 13,081.64
Unsecured Loans D 1,448.52 6.15
Deferred tax liability
(Refer Note B - 5 of Schedule - N)
Deferred tax liability 6,620.53 6,274.69
Less : Deferred tax asset (309.36) (706.59)
6,311.17 5,568.10
29,518.60 18,655.89
TOTAL 54,943.47 42,749.33
APPLICATION OF FUNDS
Fixed Assets :
Gross Block E 60,194.16 59,978.52
Less : Depreciation 28,491.76 28,512.44
31,702.40 31,466.08
Capital Work-in-progress 17,387.60 3,099.66
Machinery/spares for erection and replacement 606.62 0.00
49,696.62 34,565.75
Investments F 46.64 1,109.95
Current Assets, Loans and Advances
Inventories G 7,037.28 12,083.48
Sundry Debtors H 6,348.15 5,096.31
Cash and Bank Balances I 1,388.95 957.73
Loans and Advances J 8,966.30 5,580.55
23,740.68 23,718.07
Less: Current Liabilities and Provisions
Liabilities K 16,997.26 15,457.53
Provision L 1,543.21 1,186.91
18,540.47 16,644.44
Net Current Assets 5,200.21 7,073.63
Contingent Liabilities not provided for M
Significant Accounting Policies and N
Notes forming part of
Balance Sheet and Profit and Loss Account
TOTAL 54,943.47 42,749.33
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 Yuvraj Saheb of Dhrangadhra
Pramod Kumar Jain Sushil Kumar Jalan
S. Venkatraman Vandana Jain Bakul Jain R. V. Ruia
Partner Executive Director Managing Directors Directors
Place : Mumbai Chital V. Shah T. M. Bhandari

Date : 19th May, 2007 Asstt. Company Secretary Sr. Vice President (Finance)

Profit and Loss Account LIMITED
FOR THE YEAR ENDED 31ST MARCH, 2007

Schedule For the year ended For the year ended
31/03/2007 31/03/2006
INCOME
Sales ‘1’ 75,327.79 71,024.15
Less : Excise Duty (9,146.03) (9,591.46)
Net Sales 66,181.76 61,432.69
Other Income ‘2’ 1,598.73 1,746.76
67,780.49 63,179.45
EXPENDITURE
Manufacturing and Other expenses ‘3’ 61,570.00 57,212.36
Interest & Finance Charges (Net) ‘4’ 541.72 432.05
62,111.72 57,644.41
Depreciation ‘5’ 2,532.88 2,305.56
64,644.60 59,949.97
Profit before tax 3,135.89 3,229.48
Current Tax 347.24 277.49
Fringe Benefit Tax 73.58 40.00
MAT Credit Available for set off (44.90) (272.35)
Tax Adjustment of Previous Year — (130.00)
Profit after Current Tax & Tax Adjustments 2,759.97 3,314.34
Deferred Tax (Refer Note B - 5 of Schedule N) 743.07 587.43
Profit after Deferred tax 2,016.90 2,726.91
Add : Surplus brought forward from last year 3,027.73 2,894.90
Available for appropriation 5,044.63 5,621.81
APPROPRIATION
Transfer to General Reserve 2,000.00 2,000.00
Interim Dividend on Equity Shares 345.09 —
Proposed Dividend on Equity Shares 172.54 517.63
2,604.08 2,594.06
Profit Carried forward 2,440.55 3,027.75
Notes to Profit & Loss Account ‘6’

Weighted average number of Equity Shares
outstanding during the year 17,25,44,590 17,25,44,590
Basic and diluted earning per share Rs. 1.17 Rs. 1.58


LIMITED
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2007
2006-07 2005-06
Rs. in Lacs Rs. in Lacs
A. Cash flow from operating Activities
Net profit before tax and extraordinary items 3135.88 3229.49
Adjustments for :
Non-cash items (823.72) (1018.83)
Depreciation 2532.88 2305.56
Interest ( net ) 541.72 432.05
Dividend income (98.36) 2152.52 (61.07) 1657.71
Operating profit before working capital changes 5288.40 4887.20
Adjustments for :
Trade and other receivables (4592.68) (521.05)
Inventories 5046.20 (4097.89)
Current liabilities and provisions 1534.95 1988.47 3059.34 (1559.60)
Cash generation from operations 7276.87 3327.60
Direct taxes paid (146.17) (229.34)
Cash flow before Extraordinary items 7130.70 3098.26
Extraordinary items — —
Net cash flow from operating Activities 7130.70 3098.26
B. Cash flow from Investing Activities
Purchase of fixed Assets (19307.09) (8594.93)
Sale of Fixed Assets 3007.69 1806.94
Purchase / Sales of Investments 1063.20 (1008.12)
Dividend Income 98.36 61.07
Interest income including gain/loss on
foreign currency transactions 163.78 274.44
Net cash used in investing Activities (14974.06) (7460.60)
C. Cash from financing activities
Proceeds from issue of share capital — (0.04)
Repayment of loans (2682.86) (1390.38)
Repayment of Other borrowings (97.73) (137.81)
Proceeds from Long Term Borrowings 12900.23 7946.44
Interest paid (1256.35) (996.65)
Dividend paid (517.63) (409.91)
Tax on dividend (71.08) (57.96)
Net cash used in financing Activities 8274.58 4953.69
Net increase in Cash and Cash equivalents 431.22 591.35
Cash & Cash Equivalents as at 1st April 2006 957.73 366.38

Cash & Cash Equivalents as at 31st March 2007 1388.95 957.73
431.22 591.35


Schedules LIMITED
FORMING PART OF THE BALANCE SHEET

As at As at
31/03/2007 31/03/2006
SCHEDULE “A”
SHARE CAPITAL
Authorised Capital
32,50,00,000 Equity Shares of Rs. 2/- each
(Previous Year 17,50,00,000 Equity Shares of Rs. 2/- each) 6,500 3,500
TOTAL 6,500 3,500
ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

17,25,44,590 Equity Shares of Rs 2/- each
(Previous Year 17,25,44,590 shares of Rs. 2/-each) 3,450.89 3,450.89
TOTAL 3,450.89 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.

LIMITED Schedules
As at As at
31/03/2007 31/03/2006
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 —
406.88 355.83
CAPITAL REDEMPTION RESERVE

As per last Balance sheet 5.30 5.30
SHARE PREMIUM
As per last balance sheet 7,079.70 7,079.70
REVALUATION RESERVE
Less : Transferred to Profit and Loss Account 81.38 58.50
1,240.50 1,321.88
GENERAL RESERVE
Add : Transfer from P&L account 2,000.00 2,000.00
10,801.04 8,801.04
CONTRIBUTION FOR CAPITAL EXPENDITURE

As per last balance sheet 51.05 51.05
Less : Transfer to Capital Reserve 51.05 —
— 51.05
Profit and loss Account 2,440.55 3,027.75
TOTAL 21,973.98 20,642.55

Schedules LIMITED

As at As at
31/03/2007 31/03/2006
SCHEDULE “C”
SECURED LOANS
Banks
Term loans 17,426.80 7,688.24
Working Capital Loans 871.32 286.26
Other Loans
Financial Institutions 1,714.29 2,857.14
Term Loans from NBFC 1,746.50 2,250.00
TOTAL 21,758.91 13,081.64
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 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 The Long Term Working Capital Loan from a Financial Institution is secured by creation of first pari passu charge on
all the immovable 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.
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
31/03/2007 31/03/2006
SCHEDULE “D”
UNSECURED LOANS
Short Term Loans – Banks 1,442.87 —
Others
Deferred Sales Tax Credit 5.65 6.15
TOTAL 1,448.52 6.15
Due within one year Rs. 1,443.60 lacs (Previous Year Rs. 0.61 lacs)

28
Schedules
LIMITED
SCHEDULE “E”
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 31-03-2007 31-03-2006
Book Value transfers deduc- Book Value Year 31-03-2007
as at tions as at
01-04-2006 31-03-2007
Land 449.25 16.03 9.10 456.19 — — 456.19 449.25
Buildings 7,798.94 1,314.72 3,907.62 5,206.04 97.90 1,838.16 3,367.88 4,057.98
Plant and Machinery 50,104.62 3,384.01 646.34 52,842.29 2,343.50 25,778.43 27,063.86 26,357.28
Furniture & Fittings 789.24 67.06 219.89 636.40 42.99 492.69 143.71 123.14
Railway Sidings 0.59 — 0.59 — — — — —

Vehicles 835.87 300.27 82.90 1,053.25 81.11 382.49 670.76 478.43
TOTAL 59,978.53 5,082.09 4,866.46 60,194.17 2,565.49 28,491.76 31,702.40 31,466.09

Previous Year 52,200.44 9,313.50 1,535.42 59,978.53 2,352.45 28,512.44 31,466.09 25,328.36
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.
7. Fixed Assets includes assets taken over from erstwhile Pantape Magnetics Limited at revalued figure as per an independent valuer’s report.
Schedules LIMITED

SCHEDULE “F” As at 31/03/2007 As at 31/03/2006
Face No. Of Amount Face No. Of Amount
Value per Shares/ Rs. in Value Shares/ Rs. in
INVESTMENTS (At Cost) Share/ Bonds Lacs per Share/ Bonds Lacs
Bond Rs. Unit/
Bond Rs.
I. LONG TERM :
In Govt & Trust Securities Unquoted
7 years National Savings Certificates 1000 10 0.10 1,000 10 0.10
In other Companies-Non-Trade (Unquoted) 25 10 *250 25 10 *250
The Dhrangadhra Peoples Co-op Bank Ltd
In Govt & Trust Securities (Quoted)
Unit Trust of India - 6.75 % Tax Free Bonds 100 19,358 19.36 100 19358 19.36
Less : Diminution of value in Bonds 19,358 0.10 — — —
19.26 19.36
In other Companies - Non-Trade (Quoted)

Fully paid Equity Shares
Global Trust Bank Ltd 10 19,000 1.90 10 19000 1.90
LIC Housing Finance Ltd 10 17,400 10.44 10 17400 10.44
12.34 12.34
Less : Diminutions of value in shares of Global
Trust Bank 19,000 1.90 19,000 1.90
10.44 10.44
II. CURRENT INVESTMENTS :
Fully paid Equity Shares
Tata Consultancy Services Ltd., 1 6 0.03 1 3 0.03
Reliance Petroleum Ltd., 10 28,040 16.82 — — —
16.85 0.03
MUTUAL FUNDS
Principal Mutual Fund - Liquid Cash
Management Fund — — 10 9,999,400.775 1,000.01
Tata Mutual Fund - Liquid Fund SHIP Daily
Dividend — — 1,000 7,179,095 80.01
— 1,080.02
TOTAL 46.65 1109.95
* Figures Denote Amount in Rupees
31/03/2007 31/03/2006
Rs. in Lacs Rs. in Lacs
Aggregate Value of long term quoted investments 23.96 32.99
Aggregate Value of current quoted investments 20.12 0.06
TOTAL 44.08 33.05
Aggregate Value of unquoted investments 0.10 0.10
Market Value of quoted investments 63.33 52.75

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 Institutional Income Fund 10 66,904,973.75
Prudential ICICI Mutual Fund - Super Institutional Liquid Plan 10 10,882,717.79
Principal Mutual Fund - Liquid Cash Management Fund 10 300,608,011.45
Tata Mutual Fund - Liquid Fund SHIP Daily Dividend 1,000 144,994.65
II. SHARES:
Reliance Petroleum Ltd., 10 28,040
Associated Cement Company Ltd., 10 6,375
Bharat Electronics Ltd., 10 8,399
Bharti Airtel Ltd., 10 7,000
Bongaigaon Refinery & Petrochemicals Ltd., 10 20,250
Colgate Palmolive (India) Ltd., 10 4,725
Essar Oil Ltd., 10 1,550,590
Gujarat Narmada Valley Fertilizers Co. Ltd., 10 2,950
Hindalco Industries Ltd., 1 3,190
Hindustan Lever Ltd, 1 10,000
ICICI Bank Ltd., 10 47,689
IVRCL Infrastructure & Projects Ltd., 2 7,000
I-Flex Solutions Ltd., 5 3,148
India Cement Ltd., 10 21,750
Indusind Bank Ltd., 10 11,550
Infosys Technologies Ltd., 5 20,214
Mangalore Refinery & Petrochemicals Ltd., 10 40,050
Maruti Udyog Ltd., 5 51,138
Nagarjuna Fertilizers & Chemicals Ltd., 10 616,000
Oil & Natural Gas Corporation Ltd., 10 10,044
Ranbaxy Laboratories Ltd., 5 10,000
Reliance Capital Ltd., 10 7,180
Reliance Industries Ltd., 10 242,556
Steel Authority Of India Ltd., 10 89
Tata Motors Ltd., 10 825
State Bank of India 10 105,410
Tata Steel Ltd., 10 20,250
Videsh Sanchar Nigam Ltd., 10 9,521
Vijaya Bank 10 3,450
As at As at
31/03/2007 31/03/2006
SCHEDULE “G”
INVENTORIES
(As Certified by the Management)
(Refer Note A-6 of Schedule ‘N’)
Stores,Spare Parts,Fuel 1,944.21 2,760.54
Packing Materials (at or below cost) 24.76 18.81
Mercury on hand & in process 228.65 210.85
Stock-In-Trade
Raw materials on hand & in transit 2,896.36 3,239.82
Finished Goods 1,787.03 5,661.41
Stock in process 58.09 100.15
Packing Drums & Scrap 35.77 31.22
Coke dust,Gypsum 54.16 52.43
Shares (Refer Statement below) 8.25 8.25
TOTAL 7,037.28 12,083.48

Schedules LIMITED
Investments in shares (Stock in trade) As at 31/03/2007 As at 31/03/2006

Face No of Amount No of Amount
Value per Shares Rs. in Shares Rs. in
Particulars Share Rs. lacs lacs
Quoted
Reliance Industries Ltd 10 553 0.42 553 0.42
Reliance Capital Ltd., 10 — — 553 —
Reliance Communication Ltd., 5 553 — 553 —
Reliance Energy Ltd., 10 41 — 553 —
Reliance Natural Resources Ltd., 5 553 — 553 —
Reliance Capital Ltd., 10 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 — — —
IPCL 10 43 0.03 43 0.03
TOTAL 8.25 8.25
As at As at
31/03/2007 31/03/2006
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 1,611.61 99.64
Considered doubtful 276.47 276.47
(b) Other Debts (considered good) 4,706.54 4,966.67
6,624.62 5,372.78
Less: Provision for doubtful debts 276.47 276.47
TOTAL 6,348.15 5,096.31

LIMITED Schedules
As at As at
31/03/2007 31/03/2006
SCHEDULE “I”
CASH AND BANK BALANCES
1. Cash on hand 2.69 1.80
2. Cheques, Stamps, Hundi papers on hand 0.05 0.05
3. Balance with Scheduled Banks
a. in Current Account * 1,341.73 444.59
b. in Fixed Deposits (Pledged with Bank as Margin Money) 44.45 510.43
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. 0.85 lacs) 0.02 0.85
TOTAL 1,388.95 957.73
* Including Debit Balance of Rs. 1,200.25 lacs in cash credit Account
with State Bank of India
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) 5,221.25 4,065.99
Staff loans 42.49 51.97
Interest accrued on Inter Corporate Deposits 0.44 0.44
DCW Pigments Ltd. 0.31 0.00
Electricity and other Deposits 135.58 149.43
Balance with Customs, Central Excise etc. 3,147.64 659.22
Claims against Insurance, Railways, Custom etc. 101.34 381.15
MAT Credit Entitlement 317.25 272.35
TOTAL 8,966.30 5,580.55
SCHEDULE “K”
LIABILITIES
Acceptances against Letters of Credit 7,632.58 10,962.93
Sundry Creditors (Includes Liabilities for capital * 6,818.99 1,813.82
items Rs. 4215.81 Lacs)
Advances from customers and consignees 1,445.77 1,186.28
Trade and Other Deposits 344.04 611.95
Unclaimed Debentures Monies # — 35.53
Unclaimed Dividend # 18.91 12.24
Unclaimed Public Deposit Monies # 0.43 0.43
Other Liabilities 613.65 782.52
Interest accrued but not due on Loans 122.89 51.83
TOTAL 16,997.26 15,457.53
* Includes outstanding dues of small scale industrial undertakings of

Rs. 18.57 lacs (Previous year Rs. 14.81 lacs)
# These figures do not include any amounts, due and outstanding,
to be credited to Investor Education and Protection Fund.

Schedules LIMITED

As at As at
31/03/2007 31/03/2006
SCHEDULE “L”
PROVISIONS
Provision for Tax (net off Advance Tax and Tax Deducted at Source) 345.00 58.35
Interim Dividend – Equity 517.63 517.63
Provision for fringe benefit tax 9.00 21.00
Provision for Retirement & Other Emp. Benefits 583.61 517.33
TOTAL 1,543.21 1186.91
SCHEDULE “M”
A. CONTINGENT LIABILITIES NOT PROVIDED FOR :
1. Disputed Sales Tax Demands 987.94 615.75
2. Disputed Entry Tax Demands — 592.64
3. Disputed Excise Demands 331.55 291.91
4. Disputed Customs Demands 95.79 58.14
5. Disputed Income tax Demand (TDS Appeal pending before ITAT,

Demand adjusted against refund due to the company) — 0.12
6. Company’s contribution to ESI not made pursuant to petitions for

exemption pending before High Court 82.40 79.08
7. Lease Rent, Local Cess, Interest on Lime Stone, Surcharge,

Stamp Duty, Octroi & Water and Electricity charges 1,609.13 1,396.10
8. Disputed Industrial relations matters 251.68 285.98
B. Claims not acknowledged as debts : — 18.13
TOTAL 3,358.49 3,337.85
C. GUARANTEE AS A MEMBER OF THE ALKALI MFRS.
ASSN. (A Company Limited by Guarantee) Rs. 500 Rs. 500

LIMITED Schedules
SCHEDULE - “N”
SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST MARCH, 2007.
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 of 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. 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.
5. 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.
6. INVENTORIES
Inventories are valued at lower of cost and net realisable value except stores, spares, mercury on hand and stock in process
which are valued at cost, packing materials which are valued at or below cost and scrap which is 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.

Schedules LIMITED

7. 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.
8. 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 of settlement are accounted in the
Profit & Loss Account, except those relating to acquisition of fixed assets.
(e) Exchange difference arising on liabilities incurred on repayment of borrowings in foreign currency for acquisition of
fixed assets are accounted in the following manner:
(i) In respect of fixed assets acquired from a country outside India, exchange differences are adjusted in the carrying
cost.
(ii) In respect of fixed assets acquired in India:
Ò Exchange difference on transactions in foreign currency entered prior to 1st April, 2004 are adjusted in
carrying cost.
Ò Exchange difference on transactions in foreign currency entered on or after 1st April, 2004, are recognised
in the Profit and Loss Account.
(f) Foreign currency Current Assets/Liabilities covered by forward contracts are translated at forward cover rates at the
close of the year. The resultant gain or loss on translation difference is recognised in the Profit and Loss Account.
(g) Premium/discounts on forward exchange contracts are amortised over the life of the contract and recognised in the
Profit and Loss account.
9. 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.
10. 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.
11. RETIREMENT BENEFITS
(a) Contributions to Provident and Superannuation Funds are made to recognised funds and are charged to Profit & Loss
Account.
(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.

LIMITED Schedules
12. 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.
13. 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.
14. 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. 17,662.68 lacs
(Previous year Rs. 18,315.87 lacs).
2. The depreciation charge on the assets revalued on 31-3-1993 is more by Rs. 32.61 lacs (Previous year Rs. 46.89 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. 48.77 lacs (Previous year Rs. 11.61 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, 2006 as at 31st March, 2007
(a) Deferred tax liabilities

Depreciation 6,274.69 345.85 6,620.54
Sub-total 6,274.69 345.85 6,620.54
(b) Deferred Tax assets
Provision for dimunition in value of
Business Centre Immovable Property 420.75 (420.75) —
Provision for Doubtful debts 10.30 (10.30) —
Expenses allowed on payment basis 269.59 39.78 309.37
Long-term capital loss to be set-off 5.95 (5.95) —
Sub-total 706.59 (397.22) 309.37
5568.10 743.07 6311.17

Schedules LIMITED

6. RELATED PARTY INFORMATION
(i) Relationships:
(a) 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.
DCW Pigments Ltd.
(b) 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, 2007
(Rs. in lacs)
Particulars Enterprises where Key Management
control exists Personnel
Commission paid — —
Remuneration paid — 338.84
Purchases 0.96 —
Balances as on 31st March, 2007 27.06 —

LIMITED Schedules
7. Segment Information for the year 2006-07
(Rs. In lacs)
CAUSTIC PVC SODA ASH OTHERS TOTAL
Segment Revenue
External Revenue 20,130.58 32,614.13 13,440.90 1,594.88 67,780.48
18,504.14 29,640.40 12,312.63 975.53 61,432.70
Inter Segment Revenue — — — — —
— — — — —
Total Revenue 20,130.58 32,614.13 13,440.90 1,594.88 67,780.48
18,504.14 29,640.40 12,312.63 975.53 61,432.70
Result
Segment Result 571.55 437.46 1,289.32 1,280.93 3,579.26
1,009.63 324.85 1,923.56 342.40 3,600.44
Add: Unallocated Corporate
Income (Net of Expenses) — — — — 98.35
— — — — 61.07
Less:
Finance Charges 541.72
432.05
Current Tax 375.92
(84.86)
Deffered Tax 743.07
587.43
Net Profit 2,016.90
2,726.89
Other Information
Segment Assets 41,943.28 9,808.73 14,869.26 6,309.45 72,930.72
24,196.12 12,501.28 12,843.07 7,625.75 57,166.23
Assets — — — — 553.20
— — — — 2,140.03
Total 41,943.28 9,808.73 14,869.26 6,309.45 73,483.92
24,196.12 12,501.28 12,843.07 7,625.75 59,306.26
Segment Liabilities 24,912.98 11,292.96 5,499.47 5,394.06 47,099.47

1,292.08 13,069.01 1,037.85 553.04 15,951.98
Liabilities — — — — 757.73
— — — — 18,670.60
Total 24,912.98 11,292.96 5,499.47 5,394.06 47,857.20
1,292.08 13,069.01 1,037.85 553.04 34,622.58
Capital Expenditure 19,976.64
8,868.89
Depreciation 1,365.15 309.08 482.14 376.53 2,532.89
1,296.30 262.96 455.74 290.55 2,305.55

Schedules LIMITED

8. Encroachers have occupied some portions of the land belonging to the Company at Sahupuram. Efforts are being made to
evict them.
9. Sales Tax Assessments of Dhrangadhra Unit are pending from 1994-95 to 1997-98 and 2003-04 to 2006-07 (except for 1998-99
to 2002-03 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 Plant & Machinery, equipment and other items taken on lease, the future obligations towards lease rentals under the
lease agreements as on 31st March, 2006 amount to Rs. 189.29 lacs (Previous year Rs. 187.63 lacs).
11. 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.
12. The Company’s pending application to the Government of Tamilnadu for renewal of the lease of 3185 acres and 153 cents of
land at Vedaranayam from 1st April, 2003 has been directed by the Hon’ble Supreme Court to be considered by the learned
Single Judge of the Madras High Court. The increase in lease rent, cess etc. on the said lease hold land relating to the past period
claimed by the State Government is disputed in writ petitions filed and pending in the Madras High Court.
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 3,135.88

Add:
Wealth Tax paid 3.55
Managerial remuneration 282.73
Directors’ sitting fees 1.05
Less:
Interest capitalized 313.13
Net profit U/S 349 3,110.08
10% thereof i.e. (3110.08 X 10/110) 282.73
Less: Managerial remuneration paid 148.47
Commission payable 134.31
14. Based on Management’s review of the Carbonation Tower installed at Soda Ash plant during the year 2004-05, and after a detailed
study, justifying the need to add certain additional equipments requiring capital expenditure, the towers are being held as capital
work in progress. Till such time the Carbonation Tower becomes operational, interest of Rs. 196.94 lacs, that was charged to
revenue in the earlier years along with interest of Rs. 116.19 lacs, for this year has been capitalized by netting off against current
year interest. This accounting treatment has effect of increasing profit of the year by Rs. 313.13 lacs, with corresponding effect
on the reserves.
15. (a) Sundry Creditors (Schedule K) include Rs. 17.94 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. Bipinkumar Electrical Corpn., 2. Elite Chemicals, 3. Tamilnadu Synthetics, 4. Ganesh Polymers, 5. Arun Packs
(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.

LIMITED Schedules
16. Insurance claim received in respect of machinery Rs. Nil (Previous year Rs. 631 lacs) is taken as other income.
17. Due from companies in which Directors of the company are directors is Rs. 0.31 lacs (Previous year Rs. Nil).
18. Acceptances under current liabilities are disclosed after netting off fixed deposits for Rs. Nil (Previous year Rs. 501.16 lacs) giving
as security to the Company’s Bankers for issuing letter of credit. This does not understate current assets of the company.
19. Based on evaluation by the management of their being reasonable certainty that the company will be liable to pay normal income
tax within 7 subsequent years, MAT credit of Rs. 44.89 (Previous year Rs. 272.35 lacs), has been recognized as an asset with
corresponding credit to profit and loss account.
20. Earning per share (EPS) as per Accounting Standard – 20
2006-07 2005-06
Rs. lacs Rs. lacs
Profit after Tax 2,016.88 2,726.92
No. of Equity shares of Rs. 2 each as on 31.3.2007
Basic & Diluted 17,25,44,590 17,25,44,590
EPS (Rs.)
Basic & Diluted 1.17 1.58
21. 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.


Schedules LIMITED
FORMING PART OF THE PROFIT AND LOSS ACCOUNT

31/03/2007 31/03/2006
SCHEDULE “1”
SALES (less Rebates and Trade Discount but including excise duty)
Direct Sale * 39,776.10 42,279.35
Consignment Sales 28,211.79 21,396.99
Export Sales 7,074.98 6,768.26
Other Sales * 246.97 227.58
Sale of Services [TDS Rs. Nil (Previous Year Rs. 69.75 lacs)] 17.95 351.97
TOTAL 75,327.79 71,024.15

* Includes Sale of Traded Goods Rs. Nil
(Previous Year Rs. 69.75 lacs)
SCHEDULE “2”
OTHER INCOME
Profit/Loss on Sale of Investments — 16.82
Profit on Sale of Fixed Assets 962.29 888.16
Unclaimed balance written back 5.95 1.32
Dividend received on current Investments 95.40 59.16
Dividend received on Long Term Investments 2.96 1.91
Bad Debts Recovered — 10.42
Miscellaneous Income 532.13 768.97
TOTAL 1,598.73 1,746.76

LIMITED Schedules

31/03/2007 31/03/2006
SCHEDULE “3”
MANUFACTURING AND OTHER EXPENSES
1. Consumption of Materials : Raw Materials

Stock in hand and in process as at opening 3,239.82 3,150.35
Add: Purchases 32,833.91 37,194.72
Less: Closing stock in hand & in process (including taxes duties etc.) 2,896.36 3,239.82
TOTAL 33,177.37 37,105.25
2. (a) INCREASE/DECREASE IN STOCK
Closing Stock:
Manufactured Products 1,787.03 5,661.41
Packing Drums and Scrap 35.77 31.22
Coke Dust & Gypsum 54.16 52.43
Stock of Traded Shares 8.25 8.25
1,943.30 5,853.46
Opening Stock:
Manufactured Products 5,690.39 2,788.55
Packing Drums and Scrap 31.22 24.25
Coke Dust & Gypsum 52.43 14.55
Stock of Traded Goods — 5.34
Stock of Traded Shares 8.25 8.06
5,853.46 2,897.52
Opening Stock – Closing Stock 3,910.16 (2,955.94)
(b) Purchases for resale 32.73 (5.34)

(Net of stock of traded goods capitalised/written off)
TOTAL 3,942.89 (2,961.28)
3. SALARIES, WAGES & BENEFITS TO EMPLOYEES

Salaries & Wages 2,967.12 2,824.16
Contribution to Provident and other Funds 445.37 523.61
Employees’ Welfare 336.64 311.78
TOTAL 3,749.13 3,659.55
4. Power and Fuel 12,221.66 10,440.03

Schedules LIMITED

31/03/2007 31/03/2006
SCHEDULE “3” (Contd.)

5. OPERATION AND MAINTENANCE
Repairs and Maintenance – Buildings 301.68 357.75
Repairs and Maintenance – Plant & Machinery 1,847.55 2,304.25
Repairs and Maintenance – Other Assets 133.06 138.36
Packing Charges 1,471.11 1,365.73
Other Operation & Maintenance Expenses 1,137.17 1,116.76
TOTAL 4,890.57 5,282.85
6. ASSETS SOLD OR WRITTEN OFF

Fixed Assets discarded, obsolete, written off 117.00 427.84
Less : Drawn from Revaluation Reserve (48.77) (11.61)
68.23 416.23
Loss on Sale of Fixed Assets 70.24 94.20
(Unserviceble etc. written off)
TOTAL 138.47 510.43
7. ADMINISTRATION EXPENSES
Rent 18.16 15.09
Rates, Taxes and licence fees 217.60 415.48
Insurance 231.70 232.11
Wealth tax paid 3.55 3.73
Donation 2.84 3.77
Other expenses 724.99 653.57
TOTAL 1,198.84 1,323.75
8. SELLING AND DISTRIBUTION

Freight, Transportation, Loading and Other 1,443.04 1,055.16
Charges (Net)
Commission to wholesalers/others 474.90 459.54
Cash discount 65.40 94.16
Octroi – Consignment Sale 1.90 2.78
TOTAL 1,985.24 1,611.64
9. (a) PAYMENT TO AUDITORS

(i) Audit Fees 5.00 5.33
(ii) Tax Audit 1.25 1.33
(iii) Representation in Tax matters — 3.00
(iv) Retainer fees 3.60 3.60
(v) Other Services 1.70 1.64
(vi) Reimbursement of Expenses 3.89 2.62
TOTAL 15.44 17.52

LIMITED Schedules

31/03/2007 31/03/2006

(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
Company’s Contribution to PF 9.59 11.52
Medical Expenses 7.53 20.99
Company’s Contribution to Superannuation 12.00 14.40
Commission 134.31 68.46
MD’s Leave Encashment 13.69 —
(ii) Directors Sitting Fees 1.05 1.65
283.77 222.62
Less : Amount capitalised 33.38 —
250.39 222.62
TOTAL 61,570.00 57,212.36
SCHEDULE “4”
INTEREST AND FINANCE CHARGES
Fixed loans 307.35 442.57
Others 398.15 263.92
705.50 706.49
Less : Interest from banks & others (TDS Rs. Nil)
(Previous Year Rs. 80.65 lacs) 34.92 355.65
Gain on Foreign Exchange 128.86 (81.21)
TOTAL 541.72 432.05
SCHEDULE “5”
DEPRECIATION
Depreciation on Fixed Assets for the year 2,565.49 2,352.45
2,565.49 2,352.45
Less : Drawn from Revaluation Reserve 32.61 46.89
TOTAL 2,532.88 2,305.56


Schedules LIMITED
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 1,437 124.54 80,816 10,136 414 38.70 71,703 7,859.37
(96,000) (96,000) (753) (62.72) (87,340) (9,679) (1,437) (124.54) (76,977) (7,825.84)
Soda Bicarbonate 12,000 12,000 1,533 147.42 18,299 — 212 22.20 19,620 2,212.93
(12,000) (12,000) (1,973) (184.20) (18,810) (—) (1,533) (147.42) (19,250) (1,998.68)
Amonium Bicarbonate 5,000 — 13 1.04 1,599 — — 0.04 1,612 149.46
(5,000) (—) (34) (2.50) (2,721) (—) (13) (1.04) (2,742) (216.61)
Detergent – Green — — — — 4,482 — — — 4,482 590.87
(—) (—) (—) (—) (7,391) (—) (—) (—) (7,391) (915.42)
Detergent – Active — — — — 31,431 — 247 28.98 31,184 4,804.51
(—) (—) (—) (—) (24,160) (—) (—) (—) (24,160) (3,473.78)
Sahupuram Unit
Caustic Soda Lye 66,000 66,000 1,346 147.75 56,210 22,664 1,064 133.64 33,828 5,047.55
(60,000) (60,000) (425) (41.34) (60,100) (20,609) (1,346) (147.75) (38,570) (6,275.15)
Caustic Soda Solid — — 5 0.70 89 — 5 0.68 89 21.09
(—) (—) (8) (1.37) (187) (—) (5) (0.70) (190) (41.37)
Caustic Soda Flakes — — 390 55.23 21,612 91 647 102.98 21,264 4,435.06
(—) (—) (—) (—) (19,848) (201) (390) (55) (19,257) (3,572.77)
Sodium Hypochlorine — — — — 2,199 2 — — 2,197 56.59
(—) (—) (—) (—) (2,343) (4) (—) (—) (2,339) (56.61)
Hydrochloric Acid 100% 48,000 48,000 14 0.61 38,257 35,916 17 0.69 2,338 116.63
(39,600) (33,000) (16) (0.94) (35,655) (32,553) (14) (0.61) (3,104) (203.06)
Liquid Chlorine 36,000 36,000 116 8 12,470 6,003 41 2.28 6,542 409.41
(40,000) (40,000) (118) (8) (18,400) (6,598) (116) (7.54) (11,804) (814.55)
Trichloroethylene 7,200 7,200 373 169 3,920 1 266 127.34 4,026 2,101.47
(5,400) (5,400) (384) (171) (4,333) (—) (373) (169.22) (4,344) (2,051.92)
Upgraded Ilmenite 48,000 48,000 1,681 383.62 35,841 — 2,764 709.60 34,758 8,968.66
No Licence
Required (25,000) (1,640) (337) (33,536) (—) (1,681) (383.62) (33,495) (6,932.97)
Utox No Licence 600 66 10.78 829 4 115 21.82 776 216.76
Required (600) (41) (7) (687) (4) (66) (10.78) (658) (182.45)
Ferric Chloride — 10,000 302 2.80 4,115 14 525 5.97 3,878 111.24
(—) (10,000) (140) (2) (2,730) (23) (302) (2.80) (2,545) (38.80)
Yellow Iron Oxide — — 15 4.67 186 — — 0.30 201 59.83
(—) (—) (40) (10) (386) (—) (15) (4.67) (411) (118.25)
PVC Resin 90,000 90,000 10,619 4,539.55 67,140 1 1,117 534.43 76,641 37,206.24
(—) (60,000) (3,599) (1,891) (82,280) (—) (10,619) (4,539.55) (75,260) (34,879.25)
Caustic Soda Lye — — — — 170 — — — 170 —
(Traded Goods) (—) (—) (—) (—) (32.73) (—) (—) (—) (32.73) (—)
Misc. Sales — — — — — — — — — —
(—) (—) (—) (—) (—) (—) (—) (—) (—) (—)
TOTAL 74,367.67
(69,597.48)
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 157 mt excess as per survey.

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

(i) Know-how fees 49.66
(129.41)
(ii) Consultant fees —
(—)
(iii) Others 559.08
(617.53)
(c) Earnings in Foreign Exchange
(i) Export on F.O.B. basis 7,095.79
(6,736.23)
(ii) Others 12.73
(32.73)
(d) Consumption of imported/indigenous Raw Materials,
Stores and Spares at Landed Cost
Raw Material Imported 23,831.22
(28,509.82)
Indigenous 10,084.88
(9,258.00)
Stores and Spare parts (Including Consumption for Capital jobs)
Imported 1,603.71
(949.32)
Indigenous 14,974.74
(5,127.59)
Mercury
Imported 1.82
(1.61)
Indigenous —
(—)
(e) Value of Imports on C.I.F. basis
(i) Raw Materials 22,719.56
(26,855.37)
(ii) Fuel Oil —
(—)
(iii) Mercury 14.71
(11.61)
(iv) Stores and Spare parts 224.61
(1,015.23)
(v) Capital Goods 1,059.14
(624.18)
(f) Amount remitted in Foreign Currencies on account of Dividend —
(—)

Schedules LIMITED
TOTAL
Quantity Value
(M.T) Rs. in lacs
(g) Raw Materials consumed:
Salt 317,316 480.28
(310,922) (586.77)
Ilmenite Sand 71,794 2,694.22

(64,150) (2,288.23)
Calcium Carbide 2,893 726.32

(3,251) (820.36)
Vinyl Chloride Monomer 67,938 22,918.29

(83,199) (27,466.40)
Lauryl Peroxide 19 51.91

(23) (63.05)
Limestone 210,781 1,387.20

(224,946) (1,096.17)
Coke 19,910 1,283.31

(23,518) (1,689.23)
Ammonia 1,808 331.08

(1,667) (248.65)
Others — 3,286.13
(—) (2,842.91)
Consumption of own manufactured products and Intermediates — 757.35

(—) (666.05)
TOTAL 33,916.09
(37,767.82)


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 7
(Date / Month / Year)
II. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Right Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III. Position of Mobilisation and Deployment of Fund (Amount in Rs. Thousands)
Total Liabilities Total Assets
7 3 4 8 3 9 2 7 3 4 8 3 9 2
Source of Funds
Paid up Capital Reserves & Surplus
3 4 5 0 8 9 2 2 1 7 5 8 3
Secured Loans Unsecured Loans
2 1 7 5 8 9 0 1 4 4 8 5 2
Application of Funds
Net Fixed Assets Investments
4 9 6 9 6 6 2 4 6 6 5
Net Current Assets Misc. Expenditure
5 4 0 2 0 5 N I L
Accumulated Losses Project Expenditure
N I L N I L
IV. Performance of Company (Amount in Rs. Thousands)
Turnover Total Expenditure
7 5 3 2 7 7 8 6 4 6 4 4 5 9
+ – Porfit/Loss Before Tax + – Profit/Loss After Tax
+ 3 1 3 5 8 9 + 2 0 1 6 8 9
Earnings per Share in Rs. Dividend Rate (%)
1.17 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


DCW Ltd. - Annual Report - 2006-2007

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Corporate Directory LIMITED

BOARD OF DIRECTORS AUDITORS

Smt. Satyawati Jain REGISTERED OFFICE

Shri F.H. Tapia

Shri Yuvraj Saheb of Dhrangadhra

DCW Limited Ò Annual Report 2006-2007 

 DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007 

 DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007 

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

Ò Size of the Board:

* Ceased to be a Director w.e.f. August 1, 2006

 DCW Limited Ò Annual Report 2006-2007

3. Audit Committee: Ò Composition, Name of Members and

DCW Limited Ò Annual Report 2006-2007 

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

 DCW Limited Ò Annual Report 2006-2007

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

(5) Training of Board Members : Dividend Payment : 27th July, 2007

DCW Limited Ò Annual Report 2006-2007 

Market price data: Shareholding Pattern as on 31.03.2007:

10 DCW Limited Ò Annual Report 2006-2007

Dematerialisation of shares: 16,11,40,835 Equity shares held by Outstanding GDRs/ADRs/Warrants/convertible

Address for correspondence:

Auditors Certificate on Clause 49 Compliance

DCW Limited Ò Annual Report 2006-2007 11

2. Expenditure on Research & Development:

(i) Capital Rs. 8.02 lacs

12 DCW Limited Ò Annual Report 2006-2007

Technology Absorption, Adaptation and Innovation :

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars Current Previous Current Previous Current Previous

2. Coal (specify quality and where used) – – – – – –

DCW Limited Ò Annual Report 2006-2007 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

4 Shri Ramakrishnan B.S. Officer 4,26,179 D.M.E. 31 29.03.1978 58 Shivram Engineering

14 DCW Limited Ò Annual Report 2006-2007

AS AT 31ST MARCH, 2007

DCW Limited Ò Annual Report 2006-2007 15

16 DCW Limited Ò Annual Report 2006-2007

Gross Sales 7,532.78 173.25 7,102.42 159.14

Fixed Assets – Gross Block 6,019.42 138.44 5,997.85 134.39

Net Block 4,969.66 114.30 3,456.58 77.45

Export Earnings 710.03 16.33 673.62 15.09

Earning Before Depreciation and Interest 621.05 14.28 596.71 13.37

Interest 54.17 1.25 43.21 0.97

Earnings Before Depreciation 566.88 13.04 553.50 12.40

Depreciation 253.29 5.83 230.56 5.17

Earnings Before Tax 313.59 7.21 322.94 7.24

Current 34.72 0.80 27.75 0.62

Fringe Benefit Tax 7.36 0.17 4.00 0.09

Tax adjustment of previous year – – (13.00) (0.29)

Deferred Tax 74.31 1.71 58.74 1.32

Earnings After Tax 201.69 4.64 272.69 6.11

No. of shares of Rs. 2/- each

Earnings per Shares ( Rs. / US $ ) 1.17 0.03 1.58 0.04

Net Worth (Excl.Revaluation Reserve) 2,418.44 55.62 2,277.16 51.02

Book value per share 14.02 0.32 13.20 0.30

Gross profit to sales (%) 7.53 7.53 7.79 7.79

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007

DCW Limited Ò Annual Report 2006-2007