1.  NATURE OF OPERATIONS
 
 ADC India Communications Ltd. (formerly Krone Communications Limited)
 (the Company) is engaged in providing versatile, reliable and cost
 effective connectivity solutions to suit individual enterprise and
 telecom service provider requirements. The Company provides copper and
 fibre physical connectivity in telecommunications and data networking
 solutions including structured cabling.
 
 The Company is headquartered at Bangalore and has its manufacturing
 facility at Peenya and Regional sales offices in New Delhi, Mumbai,
 Chennai, Hyderabad and Pune.
 
 2.  Segment Information
 
 Business Segments :
 
 The Company has organized its operations into two major businesses:
 Telecommunication and IT- Networking.
 
 3.  Related Party Disclosure
 
 1.  Names of related parties
 
 Holding Company               ADC GmbH., Germany
 
 Ultimate Holding Company      ADC Telecommunications Inc., USA
 
 Fellow Subsidiaries
 
 ADC Communications Hongkong Ltd.
 
 ADC Communications (Australia) Pty Ltd.
 
 ADC USA Incorporated.
 
 ADC Digital Communications Inc.
 
 ADC Communications (UK) Ltd.
 
 ADC Communications (SEA) Pte Ltd.
 
 ADC (India) Communications & Infotech Pvt Ltd.
 
 ADC Telecom Equipment (Shanghai) Company Ltd.
 
 LGC Wireless Inc.
 
 Shenzehen Century Man Communication.
 
 Key Management Personnel    
 
 Mr. K Bala Chandran, Chairman & Managing Director
 
 4.   Leases
 
 (a)  Finance Lease :
 
 The Company had entered into finance lease arrangements for vehicles.
 The period of lease was 4 years and there are no remaining lease
 obligation outstanding as at the year-end for such arrangements.
 
 (b) Operating Lease:
 
 The Company has operating leases for office premises that are renewable
 on a periodic basis and cancellable at its option. Lease rental expense
 debited to Profit and Loss Account for the period is Rs. 4,554,551
 (Previous period: Rs. 3,021,234). The future minimum lease payments for
 operating lease for the period that the facilities are expected to be
 occupied is as follows:
 
 5.  Capital Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for amounts to Rs. 227,230 (Previous period -
 Rs. 887,660).
 
 6.  Contingent Liabilities not provided for (Amount in Rs.)
 
                                         30 Sep. 2010    30 Sep. 2009 
 
 Sales tax demands contested by 
 the Company.                             11,223,615      14,385,303
 
 Letters of Credit                           267,336         544,647
 
 Bank guarantees                         121,181,984      80,405,716
 
 7. Previous period comparatives
 
 Previous period figures have been regrouped or reclassified wherever
 necessary to conform to current periods classification. The previous
 period figures are for the eleven months period ended September 30,
 2009 and hence not comparable with those of the current year ended
 September 30, 2010.