Dwarikesh clarifies on cane arrears issue

Mumbai, 24th March, 2005 : Dwarikesh Sugar Industries today clarified on cane arrears on account of difference between Statutory Minimum Price (SMP) and State Advised Price (SAP), the company has clarified the following :

1. The cane price payment for last sugar season 2003-04 has been made based on SAP of Rs 95/-per quintal.

2. The arrears on account of cane price difference for the sugar season 1996-97 amounting to Rs 5.88 million was paid in the month of August 2004 itself.

3. The Cane price arrears for the sugar season 2002-03 amounting to Rs 56.80 million has already been provided for in the audited accounts for the year ended September 30, 2004 itself.

The PAT & EPS shown in the prospectus dated November 10, 2004 was arrived after considering the aforesaid provisions.

In view of the above, there will be no impact on the earnings / profits of the Company as regards any cane price arrears.

For further details contact :

Rajiv Naidu
Adfactors PR
Mumbai
Tel : 22813565
Cel : 9819094099